Cutera (CUTR) 10-Q 7 Nov 17 2017 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Oct. 31, 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)		13,854,966
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 14,784	$ 13,775
Marketable investments	35,692	40,299
Accounts receivable, net	19,604	16,547
Inventories	23,728	14,977
Other current assets and prepaid expenses	2,894	2,251
Total current assets	96,702	87,849
Property and equipment, net	1,842	1,907
Deferred tax asset	384	377
Intangibles, net		2
Goodwill	1,339	1,339
Other long-term assets	381	380
Total assets	100,648	91,854
Current liabilities:
Accounts payable	5,805	2,598
Accrued liabilities	22,203	17,397
Deferred revenue	8,801	8,394
Total current liabilities	36,809	28,389
Deferred revenue, net of current portion	1,950	1,705
Income tax liability	171	168
Other long-term liabilities	505	582
Total liabilities	39,435	30,844
Commitments and Contingencies (Note 11)
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: 13,906,439 and 13,773,389 shares at September 30, 2017 and December 31, 2016, respectively	14	14
Additional paid-in capital	81,195	88,114
Accumulated deficit	(19,933)	(27,046)
Accumulated other comprehensive loss	(63)	(72)
Total stockholders’ equity	61,213	61,010
Total liabilities and stockholders’ equity	$ 100,648	$ 91,854

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Sep. 30, 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)	13,906,439	13,773,389
Common stock, outstanding (in shares)	13,906,439	13,773,389

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Net revenue:
Products	$ 33,486,000	$ 25,493,000	$ 89,688,000	$ 65,903,000
Service	4,687,000	4,788,000	14,173,000	14,278,000
Total net revenue	38,173,000	30,281,000	103,861,000	80,181,000
Cost of revenue:
Products	13,859,000	10,160,000	38,843,000	26,804,000
Service	2,104,000	2,378,000	6,241,000	7,155,000
Total cost of revenue	15,963,000	12,538,000	45,084,000	33,959,000
Gross profit	22,210,000	17,743,000	58,777,000	46,222,000
Operating expenses:
Sales and marketing	13,148,000	10,574,000	36,708,000	30,002,000
Research and development	3,467,000	2,914,000	9,393,000	8,335,000
General and administrative	3,379,000	2,716,000	10,143,000	9,933,000
Lease termination income	(4,000,000)		(4,000,000)
Total operating expenses	15,994,000	16,204,000	52,244,000	48,270,000
Income (loss) from operations	6,216,000	1,539,000	6,533,000	(2,048,000)
Interest and other income, net	197,000	166,000	746,000	527,000
Income (loss) before income taxes	6,413,000	1,705,000	7,279,000	(1,521,000)
Provision for income taxes	225,000	61,000	166,000	115,000
Net income (loss)	$ 6,188,000	$ 1,644,000	$ 7,113,000	$ (1,636,000)
Net income (loss) per share:
Basic (in dollars per share)	$ 0.44	$ 0.12	$ 0.51	$ (0.12)
Diluted (in dollars per share)	$ 0.42	$ 0.12	$ 0.48	$ (0.12)
Weighted-average number of shares used in per share calculations:
Basic (in shares)	13,973	13,163	13,917	13,102
Diluted (in shares)	14,767	13,544	14,733	13,102

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Net income (loss)	$ 6,188	$ 1,644	$ 7,113	$ (1,636)
Available-for-sale investments
Net change in unrealized gains (losses) on available-for-sale investments	5	(24)	13	56
Less: Reclassification adjustment for gains on investments recognized during the period		(1)	(4)	(1)
Net change in unrealized gain and losses on available-for-sale investments	5	(25)	9	55
Tax provision (benefit)		(9)		20
Other comprehensive income (loss), net of tax	5	(16)	9	35
Comprehensive income (loss)	$ 6,193	$ 1,628	$ 7,122	$ (1,601)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net income (loss)	$ 7,113	$ (1,636)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Stock-based compensation	3,623	2,652
Depreciation and amortization	750	733
Other	(67)	(45)
Changes in assets and liabilities:
Accounts receivable	(3,048)	(61)
Inventories	(8,751)	(4,400)
Other current assets and prepaid expenses	(633)	(690)
Other long-term assets	(1)	(60)
Accounts payable	3,207	1,324
Accrued liabilities	4,757	886
Other long-term liabilities		(247)
Deferred revenue	652	(1,187)
Income tax liability	3	(18)
Net cash provided by (used) in operating activities	7,605	(2,749)
Cash flows from investing activities:
Acquisition of property, equipment and software	(443)	(311)
Disposal of property and equipment	53	17
Proceeds from sales of marketable investments	9,154	6,153
Proceeds from maturities of marketable investments	39,612	20,135
Purchase of marketable investments	(44,156)	(23,944)
Net cash provided by investing activities	4,220	2,050
Cash flows from financing activities:
Repurchase of common stock	(13,776)	(4,873)
Proceeds from exercise of stock options and employee stock purchase plan	4,566	6,798
Taxes paid related to net share settlement of equity awards	(1,332)	(601)
Payments on capital lease obligations	(274)	(218)
Net cash used in financing activities	(10,816)	1,106
Net increase in cash and cash equivalents	1,009	407
Cash and cash equivalents at beginning of period	13,775	10,868
Cash and cash equivalents at end of period	14,784	11,275
Supplemental disclosure of non-cash items:
Assets acquired under capital lease	$ 257	$ 580

Note 1 - Summary of Significant

Note 1 - Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 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. (“ 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: enlighten ® , excel HR ® , truSculpt ® , excel V ® , and xeo ® . Titan ® and 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, 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 accounts, transactions and balances have been eliminated. Unaudited Interim Financial Information The interim financial information filed included in this report 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 presentation 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 not not ’s previously filed audited financial statements and the notes thereto included in the Company’s annual report on Form 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. These estimates are based on management's best knowledge of current events and actions we may Recent Accounting Pronouncements Not Revenue Recognition In May 2014, Accounting Standards Update (“ASU”) No. 2014 09, The standard's core principle is that a reporting entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In applying this new guidance to contracts within its scope, an entity will: ( 1 2 3 4 5 December 15, 2017. While the Company has not the Company currently plans to adopt this accounting standard in the first 2018 third 2017, he Company believes that the timing and measurement of revenue recognition under its contracts with customers for its will not one the Company expects that incremental contract acquisition costs of obtaining revenue generating contracts, such as sales commissions paid in connection with system sales with multi-year post-warranty service contracts, would be capitalized and amortized over the . Under the current guidance, the Company expenses such costs when incurred. The Company is in the process of calculating the adjustment that would be required for capitalizing the sales commissions to accumulated deficit 606 upon adoption of the standard on January 1, 2018. The new revenue standard is principle-based and interpretation of those principles may may As the Company completes its evaluation of this new standard, new information may The new standard requires comprehensive disclosures of quantitative and qualitative information that enables users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company is in the process of preparing the expanded disclosure required under ASC 606. Accounting for Leases In February 2016, No. 2016 02, 842 first 2019 not ’s customers finance purchases of its system products through third not not Accounting for Income Taxes In October 2016, No. 2016 16, 740 first 2018. not Adopted Accounting Pronouncement Beginning fiscal year 2017, No. 2016 09, No. 2016 09 three nine September 30, 2017, of $50,000 $160,000, three nine September 30, 2017. Significant Accounting Policies There have been no additional new or material changes to the significant accounting policies discussed in the Company’s Annual Report on Form 10 December 31, 2016,

Note 2 - Cash, Cash Equivalents

Note 2 - Cash, Cash Equivalents and Marketable Investments	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Cash, Cash Equivalents, and Marketable Securities [Text Block]	Note 2. 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 ’ equity, are held for use in current operations and are classified in current assets as “marketable investments.” The following tables summarize the components, and the unrealized gains and losses position, related to the Company ’s cash, cash equivalents and marketable investments (in thousands): September 30, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Cash and cash equivalents: Cash $ 6,703 $ — $ — $ 6,703 Money market funds 1,636 — — 1,636 Commercial paper 6,445 — — 6,445 Total cash and cash equivalents 14,784 — — 14,784 Marketable investments: U.S. government notes 5,133 — (4 ) 5,129 U.S. government agencies — — — — Municipal securities 201 — — 201 Commercial paper 15,942 1 (1 ) 15,942 Corporate debt securities 14,419 9 (8 ) 14,420 Total marketable investments 35,695 10 (13 ) 35,692 Total cash, cash equivalents and marketable investments $ 50,479 $ 10 $ (13 ) $ 50,476 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 September 30, 2017 December 31, 2016, $13,000 $21,000, not No 12 The following table summarizes the contractual maturities of the Company ’s available-for-sale securities, classified as marketable investments as of September 30, 2017 ( Amount Due in less than one year $ 30,410 Due in 1 to 3 years 5,282 Total marketable investments $ 35,692

Note 3 - Fair Value of Financia

Note 3 - Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Fair Value Disclosures [Text Block]	Note 3. 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 (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 2 not ● Level 3: Unobservable inputs that are supported by little or no In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value. As of September 30, 2017, September 30, 2017 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 1,636 $ — $ — $ 1,636 Commercial paper — 6,445 — 6,445 Marketable investments: Available-for-sale securities — 35,392 — 35,392 Total assets at fair value $ 1,636 $ 42,137 $ — $ 43,773 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 Marketable 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 September 30, 2017 1

Note 4 - Balance Sheet Details

Note 4 - Balance Sheet Details	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Supplemental Balance Sheet Disclosures [Text Block]	Note 4. Inventories As of September 30, 2017 December 31, 2016, September 30, 2017 December 31, 2016 Raw materials $ 18,201 $ 10,966 Finished goods 5,527 4,011 Total $ 23,728 $ 14,977 Accrued Liabilities As of September 30, 2017 December 31, 2016, September 30, 2017 December 31, 2016 Accrued payroll and related expenses $ 10,869 $ 9,036 Sales and marketing programs 3,060 706 Warranty liability 2,940 2,461 Sales tax 2,206 2,373 Other 3,128 2,821 Total $ 22,203 $ 17,397

Note 5 - Warranty

Note 5 - Warranty	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Product Warranty Disclosure [Text Block]	Note 5. The Company provides a standard one 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 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. The following table provides the changes in the product warranty accrual for the three nine September 30, 2017 2016 Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Beginning Balance $ 2,877 $ 2,000 $ 2,461 $ 1,819 Add: Accruals for warranties issued during the period 959 1,202 5,038 3,634 Less: Warranty related expenses during the period (896 ) (1,102 ) (4,559 ) (3,353 ) Ending Balance $ 2,940 $ 2,100 $ 2,940 $ 2,100

Note 6 - Deferred Service Contr

Note 6 - Deferred Service Contract Revenue	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Deferred Revenue Disclosure [Text Block]	Note 6. The Company generates Service revenue from the sale of extended service contracts and from time and material services provided to customers who are not The following table provides changes in the deferred service contract revenue balance for the three nine September 30, 2017 2016 Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Beginning Balance $ 10,013 $ 10,223 $ 9,431 $ 10,469 Add: Payments received 3,178 2,517 10,290 8,825 Less: Revenue recognized (3,233 ) (3,447 ) (9,763 ) (10,001 ) Ending Balance $ 9,958 $ 9,293 $ 9,958 $ 9,293 Costs incurred by the Company for servicing extended service contracts were $1.2 $1.7 three September 30, 2017 2016, $4.2 $4.9 nine September 30, 2017 2016,

Note 7 - Stockholders' Equity a

Note 7 - Stockholders' Equity and Stock-based Compensation Expense	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	Note 7. ’ Equity and Stock-based Compensation Expense Amended and Restated 2004 T he Company’s Board of Directors (“Board”) and stockholders approved the amendment and restatement of the 2004 2004 April June 2017, 2022, 1,600,000 2004 Activity under the Company ’s Amended and Restated 2004 nine September 30, 2017 Options Outstanding Shares Available for Grant Number of Stock Options Outstanding Weighted- Average Exercise Price Balance as of December 31, 2016 721,657 1,116,472 $ 9.56 Additional shares reserved 1,600,000 Options granted (154,000 ) 154,000 21.82 Stock awards granted (1) (2) (558,694 ) Options exercised — (447,673 ) 8.90 Options canceled 53,393 (53,393 ) 16.58 Stock awards canceled (1) 110,278 Balance, as of September 30, 2017 1,772,634 769,406 $ 11.91 ( 1 The Company has a “fungible share” provision in its Amended and Restated 2004 2004 2.12 ( 2 Included in the 'Stock awards granted' total of 558,694 , are 221,540 104,500 may may January 1, 2018, two 8 January 11, 2017. As of September 30, 2017, ’s Amended and Restated 2004 2004 $4.9 1.88 may Pursuant to the Company ’s Amended and Restated 2004 three nine September 30, 2017 2016: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Stock options 77,511 413,588 447,673 706,522 Stock awards , net of shares withheld to satisfy employees’ minimum income tax withholding 9,881 8,107 152,972 114,832 ESPP — — 51,185 41,980 Total stock issued 87,392 421,695 651,830 863,334 Stock Repurchase Program On February 8, 2016, $10 December 31, 2016, $5.1 ’s common stock. On February 13, 2017 July 28, 2017 $5 $25 In the three nine months ended September 30, 2017, 184,536 518,780 $6.7 $13.8 September 30, 2017, $21.4 Stock-based Compensation Expense Stock-based compensation expense by department recognized during the three nine September 30, 2017 2016, Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Cost of revenue $ 101 $ 73 $ 377 $ 254 Sales and marketing 394 239 1,215 844 Research and development 157 131 633 416 General and administrative 345 127 1,398 1,138 Total stock-based compensation expense $ 997 $ 570 $ 3,623 $ 2,652

Note 8 - Lease Termination Inco

Note 8 - Lease Termination Income	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Lease Termination Income [Text Block]	Note 8. Lease Termination Income On May 2, 2017, July 6, 2017, of $4.0 December 31, 2017 January 31, 2023. $4.0 three nine September 30, 2017.

Note 9 - Net Income (Loss) Per

Note 9 - Net Income (Loss) Per Share	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Earnings Per Share [Text Block]	Note 9 . 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, performance stock units and employee stock purchase plan contributions), 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 The following table sets forth the computation of basic and diluted net income (loss) and the weighted average number of shares used in computing basic and diluted net income (loss) per share (in thousands, except per share data): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Numerator Net income (loss) $ 6,188 $ 1,644 $ 7,113 $ (1,636 ) Denominator Weighted average shares of common stock outstanding used in computing net income (loss) per share, basic 13,973 13,163 13,917 13,102 Dilutive effect of incremental shares and share equivalents 794 381 816 — Weighted average shares of common stock outstanding used in computing net income (loss) per share, diluted 14,767 13,544 14,733 13,102 Net income (loss) per share: Net income (loss) per share, basic $ 0.44 $ 0.12 $ 0.51 $ (0.12 ) Net income (loss) per share, diluted $ 0.42 $ 0.12 $ 0.48 $ (0.12 ) The following numbers 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 period presented because including them would have had an anti-dilutive effect (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Options to purchase common stock 42 1,740 31 1,952 Restricted stock units — 334 6 395 Performance stock units — 64 — 81 Employee stock purchase plan shares — 40 — 83 Total 42 2,178 37 2,511

Note 10 - Income Taxes

Note 10 - Income Taxes	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Income Tax Disclosure [Text Block]	Note 10 . 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. In the quarter ended December 31, 2016, No. 2016 09, No. 2016 09, nine September 30, 2017 No. 2016 09, For the nine September 30, 2016, not nine September 30, 2016. The Company ’s income tax expense of $225,000 $166,000 three nine September 30, 2017, $50,000 $160,000 three nine September 30, 2017, three nine September 30, 2016 $61,000 $115,000, The Company utilizes the asset and liability method of accounting for income taxes, under which deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using enacted tax rates expected to be in effect during the years in which the basis differences reverse. A valuation allowance is recorded when it is more likely than not not September 30, 2017 December 31, 2016 100% 2009,

Note 11 - Commitments and Conti

Note 11 - Commitments and Contingencies	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	Note 1 1 . Commitments and Contingencies Operating Lease s The Company leases space for operations in United States, Japan and France. Future minimum lease commitments under the Company’s facility operating leases as of September 30, 2017 Year Ending September 30, Amount 2018 $ 2,446 2019 2,677 2020 2,743 2021 2,593 2022 2,477 2023 and beyond 838 Total f uture minimum lease payments $ 13,774 In addition to the above facility leases, the Company also routinely leases automobiles for certain sales and field service employees under operating leases for which the remaining committed lease payments are not 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 September 30, 2017, no The Company is not

Significant Accounting Policies

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Consolidation, Subsidiaries or Other Investments, Consolidated Entities, Policy [Policy Text Block]	Description of Operations and Principles of Consolidation Cutera, Inc. (“ 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: enlighten ® , excel HR ® , truSculpt ® , excel V ® , and xeo ® . Titan ® and 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, 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 accounts, transactions and balances have been eliminated.
Unaudited Interim Financial Information [Policy Text Block]	Unaudited Interim Financial Information The interim financial information filed included in this report 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 presentation 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 not not ’s previously filed audited financial statements and the notes thereto included in the Company’s annual report on Form 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. These estimates are based on management's best knowledge of current events and actions we may
New Accounting Pronouncements, Policy [Policy Text Block]	Recent Accounting Pronouncements Not Revenue Recognition In May 2014, Accounting Standards Update (“ASU”) No. 2014 09, The standard's core principle is that a reporting entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In applying this new guidance to contracts within its scope, an entity will: ( 1 2 3 4 5 December 15, 2017. While the Company has not the Company currently plans to adopt this accounting standard in the first 2018 third 2017, he Company believes that the timing and measurement of revenue recognition under its contracts with customers for its will not one the Company expects that incremental contract acquisition costs of obtaining revenue generating contracts, such as sales commissions paid in connection with system sales with multi-year post-warranty service contracts, would be capitalized and amortized over the . Under the current guidance, the Company expenses such costs when incurred. The Company is in the process of calculating the adjustment that would be required for capitalizing the sales commissions to accumulated deficit 606 upon adoption of the standard on January 1, 2018. The new revenue standard is principle-based and interpretation of those principles may may As the Company completes its evaluation of this new standard, new information may The new standard requires comprehensive disclosures of quantitative and qualitative information that enables users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company is in the process of preparing the expanded disclosure required under ASC 606. Accounting for Leases In February 2016, No. 2016 02, 842 first 2019 not ’s customers finance purchases of its system products through third not not Accounting for Income Taxes In October 2016, No. 2016 16, 740 first 2018. not Adopted Accounting Pronouncement Beginning fiscal year 2017, No. 2016 09, No. 2016 09 three nine September 30, 2017, of $50,000 $160,000, three nine September 30, 2017.

Note 2 - Cash, Cash Equivalen19

Note 2 - Cash, Cash Equivalents and Marketable Investments (Tables)	9 Months Ended
	Sep. 30, 2017
Notes Tables
Unrealized Gain (Loss) on Investments [Table Text Block]	September 30, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Cash and cash equivalents: Cash $ 6,703 $ — $ — $ 6,703 Money market funds 1,636 — — 1,636 Commercial paper 6,445 — — 6,445 Total cash and cash equivalents 14,784 — — 14,784 Marketable investments: U.S. government notes 5,133 — (4 ) 5,129 U.S. government agencies — — — — Municipal securities 201 — — 201 Commercial paper 15,942 1 (1 ) 15,942 Corporate debt securities 14,419 9 (8 ) 14,420 Total marketable investments 35,695 10 (13 ) 35,692 Total cash, cash equivalents and marketable investments $ 50,479 $ 10 $ (13 ) $ 50,476 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 $ 30,410 Due in 1 to 3 years 5,282 Total marketable investments $ 35,692

Note 3 - Fair Value of Financ20

Note 3 - Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2017
Notes Tables
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]	September 30, 2017 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 1,636 $ — $ — $ 1,636 Commercial paper — 6,445 — 6,445 Marketable investments: Available-for-sale securities — 35,392 — 35,392 Total assets at fair value $ 1,636 $ 42,137 $ — $ 43,773 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 Marketable 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)	9 Months Ended
	Sep. 30, 2017
Notes Tables
Schedule of Inventory, Current [Table Text Block]	September 30, 2017 December 31, 2016 Raw materials $ 18,201 $ 10,966 Finished goods 5,527 4,011 Total $ 23,728 $ 14,977
Schedule of Accrued Liabilities [Table Text Block]	September 30, 2017 December 31, 2016 Accrued payroll and related expenses $ 10,869 $ 9,036 Sales and marketing programs 3,060 706 Warranty liability 2,940 2,461 Sales tax 2,206 2,373 Other 3,128 2,821 Total $ 22,203 $ 17,397

Note 5 - Warranty (Tables)

Note 5 - Warranty (Tables)	9 Months Ended
	Sep. 30, 2017
Notes Tables
Schedule of Product Warranty Liability [Table Text Block]	Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Beginning Balance $ 2,877 $ 2,000 $ 2,461 $ 1,819 Add: Accruals for warranties issued during the period 959 1,202 5,038 3,634 Less: Warranty related expenses during the period (896 ) (1,102 ) (4,559 ) (3,353 ) Ending Balance $ 2,940 $ 2,100 $ 2,940 $ 2,100

Note 6 - Deferred Service Con23

Note 6 - Deferred Service Contract Revenue (Tables)	9 Months Ended
	Sep. 30, 2017
Notes Tables
Deferred Revenue, by Arrangement, Disclosure [Table Text Block]	Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Beginning Balance $ 10,013 $ 10,223 $ 9,431 $ 10,469 Add: Payments received 3,178 2,517 10,290 8,825 Less: Revenue recognized (3,233 ) (3,447 ) (9,763 ) (10,001 ) Ending Balance $ 9,958 $ 9,293 $ 9,958 $ 9,293

Note 7 - Stockholders' Equity24

Note 7 - Stockholders' Equity and Stock-based Compensation Expense (Tables)	9 Months Ended
	Sep. 30, 2017
Notes Tables
Share-based Compensation, Activity [Table Text Block]	Options Outstanding Shares Available for Grant Number of Stock Options Outstanding Weighted- Average Exercise Price Balance as of December 31, 2016 721,657 1,116,472 $ 9.56 Additional shares reserved 1,600,000 Options granted (154,000 ) 154,000 21.82 Stock awards granted (1) (2) (558,694 ) Options exercised — (447,673 ) 8.90 Options canceled 53,393 (53,393 ) 16.58 Stock awards canceled (1) 110,278 Balance, as of September 30, 2017 1,772,634 769,406 $ 11.91
Share-based Compensation, Activity Pursuant to Amended Plans [Text Block]	Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Stock options 77,511 413,588 447,673 706,522 Stock awards , net of shares withheld to satisfy employees’ minimum income tax withholding 9,881 8,107 152,972 114,832 ESPP — — 51,185 41,980 Total stock issued 87,392 421,695 651,830 863,334
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]	Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Cost of revenue $ 101 $ 73 $ 377 $ 254 Sales and marketing 394 239 1,215 844 Research and development 157 131 633 416 General and administrative 345 127 1,398 1,138 Total stock-based compensation expense $ 997 $ 570 $ 3,623 $ 2,652

Note 9 - Net Income (Loss) Pe25

Note 9 - Net Income (Loss) Per Share (Tables)	9 Months Ended
	Sep. 30, 2017
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Numerator Net income (loss) $ 6,188 $ 1,644 $ 7,113 $ (1,636 ) Denominator Weighted average shares of common stock outstanding used in computing net income (loss) per share, basic 13,973 13,163 13,917 13,102 Dilutive effect of incremental shares and share equivalents 794 381 816 — Weighted average shares of common stock outstanding used in computing net income (loss) per share, diluted 14,767 13,544 14,733 13,102 Net income (loss) per share: Net income (loss) per share, basic $ 0.44 $ 0.12 $ 0.51 $ (0.12 ) Net income (loss) per share, diluted $ 0.42 $ 0.12 $ 0.48 $ (0.12 )
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]	Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Options to purchase common stock 42 1,740 31 1,952 Restricted stock units — 334 6 395 Performance stock units — 64 — 81 Employee stock purchase plan shares — 40 — 83 Total 42 2,178 37 2,511

Note 11 - Commitments and Con26

Note 11 - Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2017
Notes Tables
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]	Year Ending September 30, Amount 2018 $ 2,446 2019 2,677 2020 2,743 2021 2,593 2022 2,477 2023 and beyond 838 Total f uture minimum lease payments $ 13,774

Note 1 - Summary of Significa27

Note 1 - Summary of Significant Accounting Policies (Details Textual) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017
Income Tax Benefit for Excess Tax Deductions Related to Employee Share-based Compensation	$ 50,000	$ 160,000

Note 2 - Cash, Cash Equivalen28

Note 2 - Cash, Cash Equivalents and Marketable Investments (Details Textual) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	$ 13,000	$ 21,000
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	$ 0

Note 2 - Cash, Cash Equivalen29

Note 2 - Cash, Cash Equivalents and Marketable Investments - Unrealized Gains and Losses Related to Marketable Investments (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015
Cash and cash equivalents, Amortized Cost	$ 14,784,000	$ 13,775,000	$ 11,275,000	$ 10,868,000
Cash and cash equivalents, Fair Market Value	14,784,000	13,775,000
Marketable investments, Amortized Cost	35,695,000	40,311,000
Marketable investments, Gross Unrealized Gains	10,000	9,000
Marketable investments, Gross Unrealized Losses	(13,000)	(21,000)
Marketable investments, Fair Market Value	35,692,000	40,299,000
Marketable investments, Amortized Cost	50,479,000	54,086,000
Marketable investments, Fair Market Value	50,476,000	54,074,000
US Treasury and Government [Member]
Marketable investments, Amortized Cost	5,133,000	8,403,000
Marketable investments, Gross Unrealized Gains		4,000
Marketable investments, Gross Unrealized Losses	(4,000)	(9,000)
Marketable investments, Fair Market Value	5,129,000	8,398,000
US Government Agencies Debt Securities [Member]
Marketable investments, Amortized Cost		3,918,000
Marketable investments, Gross Unrealized Gains
Marketable investments, Gross Unrealized Losses		(2,000)
Marketable investments, Fair Market Value		3,916,000
US States and Political Subdivisions Debt Securities [Member]
Marketable investments, Amortized Cost	201,000	1,325,000
Marketable investments, Gross Unrealized Gains
Marketable investments, Gross Unrealized Losses
Marketable investments, Fair Market Value	201,000	1,325,000
Commercial Paper, Not Included with Cash and Cash Equivalents [Member]
Marketable investments, Amortized Cost	15,942,000	12,299,000
Marketable investments, Gross Unrealized Gains	1,000	2,000
Marketable investments, Gross Unrealized Losses	(1,000)	(2,000)
Marketable investments, Fair Market Value	15,942,000	12,299,000
Corporate Debt Securities [Member]
Marketable investments, Amortized Cost	14,419,000	14,366,000
Marketable investments, Gross Unrealized Gains	9,000	3,000
Marketable investments, Gross Unrealized Losses	(8,000)	(8,000)
Marketable investments, Fair Market Value	14,420,000	14,361,000
Cash [Member]
Cash and cash equivalents, Amortized Cost	6,703,000	6,672,000
Cash and cash equivalents, Fair Market Value	6,703,000	6,672,000
Money Market Funds [Member]
Cash and cash equivalents, Amortized Cost	1,636,000	6,053,000
Cash and cash equivalents, Fair Market Value	1,636,000	6,053,000
Commercial Paper [Member]
Cash and cash equivalents, Amortized Cost	6,445,000	1,050,000
Cash and cash equivalents, Fair Market Value	$ 6,445,000	$ 1,050,000

Note 2 - Cash, Cash Equivalen30

Note 2 - Cash, Cash Equivalents and Marketable Investments - Maturities of Available-for-sale Securities (Details) $ in Thousands	Sep. 30, 2017USD ($)
Due in less than one year	$ 30,410
Due in 1 to 3 years	5,282
Total marketable investments	$ 35,692

Note 3 - Fair Value of Financ31

Note 3 - Fair Value of Financial Instruments (Details Textual)	9 Months Ended
	Sep. 30, 2017
Maximum Maturity Period Of Investments	1 year

Note 3 - Fair Value of Financ32

Note 3 - Fair Value of Financial Instruments - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Cash equivalents:
Cash Equivalents	$ 14,784	$ 13,775
Marketable investments:
Available-for-sale securities	35,692	40,299
Money Market Funds [Member]
Cash equivalents:
Cash Equivalents	1,636	6,053
Commercial Paper [Member]
Cash equivalents:
Cash Equivalents	6,445	1,050
Fair Value, Measurements, Recurring [Member]
Marketable investments:
Available-for-sale securities	35,392	40,299
Total assets at fair value	43,773	47,402
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Marketable investments:
Total assets at fair value	1,636	6,053
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Marketable investments:
Available-for-sale securities	35,392	40,299
Total assets at fair value	42,137	41,349
Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member]
Cash equivalents:
Cash Equivalents	1,636	6,053
Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member]
Cash equivalents:
Cash Equivalents	1,636	6,053
Fair Value, Measurements, Recurring [Member] | Commercial Paper [Member]
Cash equivalents:
Cash Equivalents	6,445	1,050
Fair Value, Measurements, Recurring [Member] | Commercial Paper [Member] | Fair Value, Inputs, Level 2 [Member]
Cash equivalents:
Cash Equivalents	$ 6,445	$ 1,050

Note 4 - Balance Sheet Detail33

Note 4 - Balance Sheet Details - Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Raw materials	$ 18,201	$ 10,966
Finished goods	5,527	4,011
Total	$ 23,728	$ 14,977

Note 4 - Balance Sheet Detail34

Note 4 - Balance Sheet Details - Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Accrued payroll and related expenses	$ 10,869	$ 9,036
Sales and marketing programs	3,060	706
Warranty liability	2,940	2,461
Sales tax	2,206	2,373
Other	3,128	2,821
Total	$ 22,203	$ 17,397

Note 5 - Warranty (Details Text

Note 5 - Warranty (Details Textual)	9 Months Ended
	Sep. 30, 2017
Warranty Term, Systems	1 year
Minimum [Member]
Warranty Term, Parts	1 year 60 days
Maximum [Member]
Warranty Term, Parts	1 year 120 days

Note 5 - Warranty - Summary of

Note 5 - Warranty - Summary of Warranties (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Beginning Balance	$ 2,877	$ 2,000	$ 2,461	$ 1,819
Add: Accruals for warranties issued during the period	959	1,202	5,038	3,634
Less: Warranty related expenses during the period	(896)	(1,102)	(4,559)	(3,353)
Ending Balance	$ 2,940	$ 2,100	$ 2,940	$ 2,100

Note 6 - Deferred Service Con37

Note 6 - Deferred Service Contract Revenue (Details Textual) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Deferred Revenue Costs Incurred	$ 1.2	$ 1.7	$ 4.2	$ 4.9

Note 6 - Deferred Service Con38

Note 6 - Deferred Service Contract Revenue - Summary of Deferred Service Contract Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Beginning Balance, deferred service contract revenue	$ 10,013	$ 10,223	$ 9,431	$ 10,469
Add: Payments received	3,178	2,517	10,290	8,825
Less: Revenue recognized	(3,233)	(3,447)	(9,763)	(10,001)
Ending Balance, deferred service contract revenue	$ 9,958	$ 9,293	$ 9,958	$ 9,293

Note 7 - Stockholders' Equity39

Note 7 - Stockholders' Equity and Stock-based Compensation Expense (Details Textual) - USD ($) $ in Millions		Jul. 28, 2017	Feb. 13, 2017	Feb. 08, 2016	Sep. 30, 2017	Jun. 30, 2017	Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized						1,600,000
Share Based Compensation Arrangement By Share Based Payment Award Shares Available For Grant In Period Gross	[1],[2]						558,694
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized					$ 4.9		$ 4.9
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition							1 year 321 days
Modified Stock Buyback Program [Member]
Stock Repurchase Program, Additional Amount Authorized		$ 25	$ 5	$ 10
Stock Repurchase Program, Remaining Authorized Repurchase Amount				$ 5.1	$ 21.4		$ 21.4
Stock Repurchased During Period, Shares					184,536		518,780
Treasury Stock, Value, Acquired, Cost Method					$ 6.7		$ 13.8
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							558,694
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 558,694, was 221,540 fungible shares relating to 104,500 of PSUs granted. These PSUs may result in a lower number of shares of common stock that may be released on January 1, 2018, based on PSUs forfeited due to employment terminations and the degree of achievement of two performance goals compared to 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 Amended and Restated 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' Equity40

Note 7 - Stockholders' Equity and Stock-based Compensation Expense - Activity Under the 2004 Equity Incentive Plan (Details)	9 Months Ended
	Sep. 30, 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
Additional shares reserved (in shares)	1,600,000
Options granted, shares available for grant (in shares)	(154,000)
Options granted, stock options outstanding (in shares)	154,000
Options granted, weighted-average exercise price (in dollars per share) | $ / shares	$ 21.82
Stock awards granted(1) (2) (in shares)	(558,694)	[1],[2]
Options exercised, stock options outstanding (in shares)	(447,673)
Options exercised, weighted-average exercise price (in dollars per share) | $ / shares	$ 8.90
Options canceled, shares available for grant (in shares)	53,393
Options canceled, stock options outstanding (in shares)	(53,393)
Options canceled, weighted-average exercise price (in dollars per share) | $ / shares	$ 16.58
Stock awards canceled(1) (in shares)	110,278	[2]
Balance, shares available for grant (in shares)	1,772,634
Balance, stock options outstanding (in shares)	769,406
Balance, weighted-average exercise price (in dollars per share) | $ / shares	$ 11.91
[1]	Included in 'Stock awards granted' of 558,694, was 221,540 fungible shares relating to 104,500 of PSUs granted. These PSUs may result in a lower number of shares of common stock that may be released on January 1, 2018, based on PSUs forfeited due to employment terminations and the degree of achievement of two performance goals compared to 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 Amended and Restated 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 - Activity Pursuant to the Amended and Restated Plans (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Stock options (in shares)	77,511	413,588	447,673	706,522
Stock awards, net of shares withheld to satisfy employees’ minimum income tax withholding (in shares)	9,881	8,107	152,972	114,832
ESPP (in shares)			51,185	41,980
Total stock issued (in shares)	87,392	421,695	651,830	863,334

Note 7 - Stockholders' Equity42

Note 7 - Stockholders' Equity, Stock Plans and Stock-based Compensation Expense - Stock-based Compensation Expense by Department (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Allocated Share Based Compensation Expense	$ 997	$ 570	$ 3,623	$ 2,652
Cost of Sales [Member]
Allocated Share Based Compensation Expense	101	73	377	254
Selling and Marketing Expense [Member]
Allocated Share Based Compensation Expense	394	239	1,215	844
Research and Development Expense [Member]
Allocated Share Based Compensation Expense	157	131	633	416
General and Administrative Expense [Member]
Allocated Share Based Compensation Expense	$ 345	$ 127	$ 1,398	$ 1,138

Note 8 - Lease Termination In43

Note 8 - Lease Termination Income (Details Textual) $ in Millions	Jul. 06, 2017USD ($)
Proceeds from Termination of Lease	$ 4

Note 9 - Net Income (Loss) Pe44

Note 9 - Net Income (Loss) Per Share - Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Net income (loss)	$ 6,188	$ 1,644	$ 7,113	$ (1,636)
Basic (in shares)	13,973	13,163	13,917	13,102
Dilutive effect of incremental shares and share equivalents (in shares)	794	381	816
Diluted (in shares)	14,767	13,544	14,733	13,102
Net income (loss) per share:
Basic (in dollars per share)	$ 0.44	$ 0.12	$ 0.51	$ (0.12)
Diluted (in dollars per share)	$ 0.42	$ 0.12	$ 0.48	$ (0.12)

Note 9 - Net Income (Loss) Pe45

Note 9 - Net Income (Loss) Per Share - Antidilutive Securities Excluded From Computation of Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Antidilutive Securities (in shares)	42	2,178	37	2,511
Employee Stock Option [Member]
Antidilutive Securities (in shares)	42	1,740	31	1,952
Restricted Stock Units (RSUs) [Member]
Antidilutive Securities (in shares)		334	6	395
Performance Shares [Member]
Antidilutive Securities (in shares)		64		81
ESPP [Member]
Antidilutive Securities (in shares)		40		83

Note 10 - Income Taxes (Details

Note 10 - Income Taxes (Details Textual) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Income Tax Expense (Benefit)	$ 225,000	$ 61,000	$ 166,000	$ 115,000
Income Tax Benefit for Excess Tax Deductions Related to Employee Share-based Compensation	$ 50,000		$ 160,000
Deferred Tax Assets Valuation Allowance Percentage			100.00%		100.00%

Note 11 - Commitments and Con47

Note 11 - Commitments and Contingencies - Minimum Lease and Other Leased Assets Under Long-term Non-cancellable Operating Leases (Details) $ in Thousands	Sep. 30, 2017USD ($)
2,018	$ 2,446
2,019	2,677
2,020	2,743
2,021	2,593
2,022	2,477
2023 and beyond	838
Total future minimum lease payments	$ 13,774