Intersect ENT (XENT) 10-Q 7 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	Apr. 30, 2019
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Entity Registrant Name	Intersect ENT, Inc.
Entity Central Index Key	0001271214
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Trading Symbol	XENT
Entity Common Stock, Shares Outstanding		31,246,267
Entity Emerging Growth Company	false
Entity Small Business	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018	[1]
Current assets:
Cash and cash equivalents	$ 8,593	$ 9,464
Short-term investments, available-for-sale	88,993	91,309
Accounts receivable, net	17,331	19,616
Inventory	13,916	11,586
Prepaid expenses and other current assets	2,372	2,695
Total current assets	131,205	134,670
Property and equipment, net	5,975	5,878
Other non-current assets	1,861	413
Total assets	139,041	140,961
Current liabilities:
Accounts payable	4,240	6,202
Accrued compensation	13,180	12,281
Other current liabilities	2,674	1,250
Total current liabilities	20,094	19,733
Other non-current liabilities	200	234
Total liabilities	20,294	19,967
Commitments and contingencies (note 9)
Stockholders' equity:
Preferred stock, $0.001 par value; Authorized shares: 10,000 at March 31, 2019 and December 31, 2018; Issued and outstanding shares: none	0	0
Common stock, $0.001 par value; Authorized shares: 150,000 at March 31, 2019 and December 31, 2018; Issued and outstanding shares: 31,162 at March 31, 2019 and 30,745 at December 31, 2018	31	31
Additional paid-in capital	317,247	308,766
Accumulated other comprehensive income (loss)	36	(41)
Accumulated deficit	(198,567)	(187,762)
Total stockholders' equity	118,747	120,994
Total liabilities and stockholders' equity	$ 139,041	$ 140,961
[1]	Amounts have been derived from the December 31, 2018 audited consolidated financial statements included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission.

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	31,162,000	30,745,000
Common stock, shares outstanding	31,162,000	30,745,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Statement [Abstract]
Revenue	$ 26,673	$ 24,723
Cost of sales	4,645	5,482
Gross profit	22,028	19,241
Operating expenses:
Selling, general and administrative	27,207	21,516
Research and development	6,266	4,273
Total operating expenses	33,473	25,789
Loss from operations	(11,445)	(6,548)
Interest income and other, net	640	412
Net loss	(10,805)	(6,136)
Other comprehensive income (loss):
Unrealized gain (loss) on short-term investments, net	77	(65)
Comprehensive loss	$ (10,728)	$ (6,201)
Net loss per share, basic and diluted	$ (0.35)	$ (0.21)
Weighted average common shares used to compute net loss per share, basic and diluted	30,918	29,878

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total		Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Accumulated Deficit [Member]
Beginning balance, Value at Dec. 31, 2017	$ 117,219		$ 30	$ 282,121	$ (92)	$ (164,840)
Beginning balance, Shares at Dec. 31, 2017			29,678
Issuance of common stock and exercise of stock options, Value	4,224			4,224
Issuance of common stock and exercise of stock options, Shares			421
Stock-based compensation expense	3,138			3,138
Unrealized gain (loss) on short-term investments	(65)				(65)
Net loss	(6,136)					(6,136)
Ending balance, Value at Mar. 31, 2018	118,380		$ 30	289,483	(157)	(170,976)
Ending balance, Shares at Mar. 31, 2018			30,099
Beginning balance, Value at Dec. 31, 2018	120,994	[1]	$ 31	308,766	(41)	(187,762)
Beginning balance, Shares at Dec. 31, 2018			30,745
Issuance of common stock and exercise of stock options, Value	4,467			4,467
Issuance of common stock and exercise of stock options, Shares			417
Stock-based compensation expense	4,014			4,014
Unrealized gain (loss) on short-term investments	77				77
Net loss	(10,805)					(10,805)
Ending balance, Value at Mar. 31, 2019	$ 118,747		$ 31	$ 317,247	$ 36	$ (198,567)
Ending balance, Shares at Mar. 31, 2019			31,162
[1]	Amounts have been derived from the December 31, 2018 audited consolidated financial statements included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission.

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019		Mar. 31, 2018
Operating activities:
Net loss	$ (10,805)		$ (6,136)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization	588		414
Amortization of right-of-use assets	266
Stock-based compensation expense	3,869		3,138
Amortization of net investment discount	(377)		(83)
Changes in operating assets and liabilities:
Accounts receivable, net	2,285		2,322
Inventory	(2,184)		(24)
Prepaid expenses and other assets	182		144
Accounts payable	(1,295)		(406)
Accrued compensation	899		(2,983)
Other liabilities	(320)		(6)
Net cash used in operating activities	(6,892)		(3,620)
Investing activities:
Purchases of short-term investments	(42,539)		(31,502)
Maturities of short-term investments	45,310		21,282
Purchases of property and equipment	(1,217)		(344)
Net cash provided by (used in) investing activities	1,554		(10,564)
Financing activities:
Proceeds from issuance of common stock and exercise of stock options	4,467		4,873
Net cash provided by financing activities	4,467		4,873
Net decrease in cash and cash equivalents	(871)		(9,311)
Cash and cash equivalents:
Beginning of the period	9,464	[1]	19,837
End of the period	8,593		10,526
Non-cash investing activities:
Right-of-use asset obtained in exchange for lease obligations	117
Property and equipment included in accounts payable	346		$ 21
Lessor funded building improvements	$ 152
[1]	Amounts have been derived from the December 31, 2018 audited consolidated financial statements included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission.

Organization

Organization	3 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	1. Organization Description of Business Intersect ENT, Inc. (the “Company”) is incorporated in the state of Delaware and its facilities are located in Menlo Park, California. The Company is a commercial drug delivery company committed to improving the quality of life for patients with ear, nose and throat conditions. The Company’s U.S. Food and Drug Administration (“FDA”) approved products are steroid releasing implants designed to treat patients suffering from chronic sinusitis who are managed by ear, nose and throat (“ENT”) physicians. These products include the PROPEL ® ® ® ® ®

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of Preparation The condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). These condensed consolidated financial statements include the accounts of the Company and its consolidated subsidiary. All intercompany balances and transactions have been eliminated in consolidation. The functional currency of the Company’s wholly-owned subsidiary Intersect ENT GmbH, which the Company established in June 2018, is the U.S. dollar. Transaction gains and losses are included in interest income and other, net, on the Company’s condensed consolidated statements of operations. The interim financial data as of March 31, 2019, is unaudited and is not necessarily indicative of the results for the full year. In the opinion of the Company’s management, the interim data includes only normal and recurring adjustments necessary for a fair presentation of the Company’s financial results for the three months ended March 31, 2019 and 2018. Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to SEC rules and regulations relating to interim financial statements. The accompanying condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K (“Annual Report”) for the year ended December 31, 2018 filed with the SEC on February 28, 2019. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts and disclosures reported in the financial statements. Management uses significant judgment when making estimates related to its revenue related allowances, common stock valuation and related stock-based compensation, as well as certain accrued liabilities. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates. Significant Accounting Policies There have been no significant changes to the accounting policies during the three months ended March 31, 2019, as compared to the significant accounting policies described in Note 2 of the “Notes to Consolidated Financial Statements” in the Company’s audited consolidated financial statements included in its Annual Report, except as described below. Leases The Company adopted Accounting Standards Codification, or ASC, Topic 842, Leases, $1.6 The results Leases For agreements with a term of more than twelve months, the Company determines if an agreement is a lease at inception. Operating lease liabilities represent an obligation to make lease payments arising from the lease agreement. Operating lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the remaining lease term. In determining the present value of lease payments, the Company estimates its incremental borrowing rate as the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term, of an amount equal to the lease payments in a similar economic environment. Operating lease liabilities are included in other current and non-current liabilities in our condensed consolidated balance sheet. Right-of-use assets represent our right to use an underlying asset for the lease term and are classified as other non-current assets. Lease expense is recognized on a straight-line basis over the expected lease term. Recent Accounting Pronouncements There have been no significant changes to the disclosures in the recent accounting pronouncements during the three months ended March 31, 2019, as compared to the recent accounting pronouncements described in Note 2 of the “Notes to Consolidated Financial Statements” in the Company’s audited consolidated financial statements included in its Annual Report.

Composition of Certain Financia

Composition of Certain Financial Statement Items	3 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Composition of Certain Financial Statement Items	3. Composition of Certain Financial Statement Items Accounts Receivable (in thousands): March 31, December 31, 2019 2018 Accounts receivable $ 17,400 $ 19,696 Allowance for doubtful accounts (69 ) (80 ) $ 17,331 $ 19,616 Inventory (in thousands): March 31, 2019 December 31, 2018 Raw materials $ 2,246 $ 1,872 Work-in-process 68 368 Finished goods 11,602 9,346 $ 13,916 $ 11,586 Capitalized stock-based compensation expense of $0.7 million and $0.6 million were included in inventory as of March 31, 2019 and December 31, 2018, respectively.

Cash, Cash Equivalents and Shor

Cash, Cash Equivalents and Short-term Investments	3 Months Ended
	Mar. 31, 2019
Cash and Cash Equivalents [Abstract]
Cash, Cash Equivalents and Short-term Investments	4. Cash, Cash Equivalents and Short-term Investments The following is a summary of cash, cash equivalents and short-term investments, available-for-sale, by type of instrument (in thousands): March 31, December 31, 2019 2018 Amortized Gross Unrealized Estimated Amortized Gross Unrealized Estimated Cost Gains Losses Fair Value Cost Gains Losses Fair Value Cash $ 5,202 $ — $ — $ 5,202 $ 4,168 $ — $ — $ 4,168 Money market funds 2,139 — — 2,139 2,308 — — 2,308 Corporate debt securities 39,595 21 (3 ) 39,613 45,177 5 (17 ) 45,165 Commercial paper 50,614 19 (1 ) 50,632 49,161 — (29 ) 49,132 $ 97,550 $ 40 $ (4 ) $ 97,586 $ 100,814 $ 5 $ (46 ) $ 100,773 Reported as: Cash and cash equivalents $ 8,593 $ 9,464 Short-term investments, available-for-sale 88,993 91,309 $ 97,586 $ 100,773 As of March 31, 2019 and December 31, 2018, the Company had no investments with a contractual maturity of greater than one year. Based on an evaluation of securities that have been in a loss position, the Company did not recognize any other-than-temporary impairment charges during the three months ended March 31, 2019 and year ended December 31, 2018. The Company considered various factors which included a credit and liquidity assessment of the underlying securities and the Company’s intent and ability to hold the underlying securities until the estimated date of recovery of its amortized cost.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2019
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	5. Fair Value of Financial Instruments The Company measures certain financial assets and liabilities at fair value on a recurring basis, including cash equivalents and short-term investments, available-for-sale. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value: Level 1 – Observable inputs such as quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 – Other inputs that are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant inputs are observable in the market or can be derived from observable market data. Level 3 – Unobservable inputs that are supported by little or no market activities, which would require the Company to develop its own assumptions. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Cash, Cash Equivalents and Short-term Investments The following is a summary of cash, cash equivalents and short-term investments, available-for-sale, by type of instrument measured at fair value on a recurring basis (in thousands): March 31, December 31, 2019 2018 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash $ 5,202 $ — $ — $ 5,202 $ 4,168 $ — $ — $ 4,168 Money market funds 2,139 — — 2,139 2,308 — — 2,308 Corporate debt securities — 39,613 — 39,613 — 45,165 — 45,165 Commercial paper — 50,632 — 50,632 — 49,132 — 49,132 $ 7,341 $ 90,245 $ — $ 97,586 $ 6,476 $ 94,297 $ — $ 100,773 Reported as: Cash and cash equivalents $ 8,593 $ 9,464 Short-term investments, available-for-sale 88,993 91,309 $ 97,586 $ 100,773 There were no transfers in and out of Level 1 and Level 2 during the three months ended March 31, 2019 and year ended December 31, 2018.

Leases

Leases	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
Leases	6. Leases The Company’s headquarters is leased under an operating lease agreement entered into in March 2012 and expires in May 2020. This lease is for 95 Right-of-use assets (in thousands): March 31, 2019 Upon the adoption of Topic 842 $ 1,572 Additional warehouse operating lease 117 Less: accumulated amortization (266 ) $ 1,423 Operating lease liabilities (in thousands): March 31, 2019 Current portion included in other current liabilities $ 1,786 Non-current portion included in other non-current liabilities 156 $ 1,942 Cash paid for amounts included in the measurement of lease liabilities for the three months ended March 31, 2019 was $0.4 million and was included in net cash used in operating activities in the condensed consolidated statements of cash flows. Future minimum annual operating lease payments are as follows (in thousands): March 31, Fiscal Years Ending December 31, 2019 2019 (remaining) $ 1,247 2020 782 Thereafter — Total minimum payments 2,029 Less: present value adjustment (87 ) Total $ 1,942 As of March 31, 2019, the weighted average remaining lease term is 1.2 0.5

Stock-based Compensation Expens

Stock-based Compensation Expense	3 Months Ended
	Mar. 31, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based Compensation Expense	7. Stock-based Compensation Expense 2014 Equity Incentive Plan In July 2014, the Company’s board of directors approved the 2014 Equity Incentive Plan (the “2014 Plan”). The number of shares of common stock reserved for issuance under the 2014 Plan will automatically increase on January 1 of each year, beginning on January 1, 2015, and continuing through and including January 1, 2024, by 3% of the total number of shares of the Company’s capital stock outstanding on December 31 of the preceding calendar year, or a lesser number of shares determined by the Company’s board of directors. On January 1, 2019, the total number of shares of common stock reserved for issuance increased by 920,190 shares to 8,965,704 shares. A summary of the Company’s stock option activity and related information (options in thousands): Three Months Ended March 31, 2019 Weighted Average Options Exercise Price Outstanding, beginning of period 3,688 $ 20.84 Granted 815 31.18 Exercised (284 ) 15.74 Forfeited (77 ) 23.48 Outstanding, end of period 4,142 23.18 Exercisable 1,945 18.87 As of March 31, 2019, the aggregate pre-tax intrinsic value of options outstanding was $40.0 million and options outstanding and exercisable was $26.5 million, the weighted-average remaining contractual term of options outstanding was 7.8 years and options outstanding and exercisable was 6.6 years. The aggregate pre-tax intrinsic value of options exercised was $5.1 million and $7.9 million during the three months ended March 31, 2019 and 2018, respectively. A summary of the Company’s RSU activity and related information (RSUs in thousands): Three Months Ended March 31, 2019 Weighted Average RSUs Fair Value Outstanding, beginning of period 350 $ 24.92 Awarded 205 32.42 Vested (133 ) 22.07 Forfeited (14 ) 25.49 Outstanding, end of period 408 29.60 As of March 31, 2019, the aggregate pre-tax intrinsic value of RSUs outstanding was $13.1 million, calculated based on the closing price of the Company’s common stock at the end of the period, and the weighted-average remaining contractual term of RSUs outstanding was 2.4 years. Total stock-based compensation expense recognized is as follows (in thousands): Three Months Ended March 31, 2019 2018 Cost of sales $ 236 $ 260 Selling, general and administrative 2,974 2,366 Research and development 659 512 $ 3,869 $ 3,138 As of March 31, 2019, the amount of unearned stock-based compensation currently estimated to be expensed through the year 2023 related to unvested employee stock-based awards was $37.8 million and the weighted average period over which the unearned stock-based compensation is expected to be recognized was 2.9 years. If there are any modifications or cancellations of the underlying unvested securities, the Company may be required to accelerate, increase or cancel any remaining unearned stock-based compensation expense. 2014 Employee Stock Purchase Plan In July 2014, the Company’s board of directors approved the 2014 Employee Stock Purchase Plan (“2014 ESPP”). A total of 496,092 shares were initially reserved for issuance under the 2014 ESPP. In June 2018, the Company’s stockholders approved the Amended and Restated 2014 ESPP, increasing the total number of shares of common stock reserved for issuance under the 2014 ESPP by 1,200,000 shares to a total of 1,696,092 shares (the “Amended and Restated 2014 ESPP”). During the three months ended March 31, 2019, no shares were issued.

Net Loss per Share

Net Loss per Share	3 Months Ended
	Mar. 31, 2019
Earnings Per Share [Abstract]
Earnings Per Share [Text Block]	8. Net Loss per Share Basic net loss per share is computed by dividing the net loss by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing the net loss by the weighted average number of shares of common stock and common stock equivalent shares from dilutive stock options, employee stock purchases and restricted stock units outstanding during the period. Because the Company has reported a net loss for all periods presented, diluted net loss per share is the same as basic net loss per share for those periods as all potentially dilutive securities were antidilutive in those periods. The following potentially dilutive securities outstanding have been excluded from the computations of weighted average shares outstanding because such securities have an antidilutive impact due to losses reported (in common stock equivalent shares, in thousands): Three Months Ended March 31, 2019 2018 Common stock options 4,142 4,087 Restricted stock units 408 371 Employee stock purchase plan shares 74 190 4,624 4,648

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	9. Commitments and Contingencies Contingencies In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties and provide for general indemnifications. The Company’s exposure under these agreements is unknown because it involves claims that may be made against the Company in the future, but have not yet been made. The Company accrues a liability for such matters when it is probable that future expenditures will be made and such amounts can be reasonably estimated. Indemnification The Company’s amended and restated certificate of incorporation contains provisions limiting the liability of directors, and its amended and restated bylaws provide that the Company will indemnify each of its directors to the fullest extent permitted under Delaware law. The Company’s amended and restated certificate of incorporation and amended and restated bylaws also provide its board of directors with discretion to indemnify its officers and employees when determined appropriate by the board. In addition, the Company has entered and expects to continue to enter into agreements to indemnify its directors and executive officers. Litigation The Company is not currently a party to any material legal proceedings. The Company may at times be involved in litigation and other legal claims in the ordinary course of business. When appropriate in the Company’s estimation, it may record reserves in its financial statements for pending litigation and other claims.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Basis of Preparation	Basis of Preparation The condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). These condensed consolidated financial statements include the accounts of the Company and its consolidated subsidiary. All intercompany balances and transactions have been eliminated in consolidation. The functional currency of the Company’s wholly-owned subsidiary Intersect ENT GmbH, which the Company established in June 2018, is the U.S. dollar. Transaction gains and losses are included in interest income and other, net, on the Company’s condensed consolidated statements of operations. The interim financial data as of March 31, 2019, is unaudited and is not necessarily indicative of the results for the full year. In the opinion of the Company’s management, the interim data includes only normal and recurring adjustments necessary for a fair presentation of the Company’s financial results for the three months ended March 31, 2019 and 2018. Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to SEC rules and regulations relating to interim financial statements. The accompanying condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K (“Annual Report”) for the year ended December 31, 2018 filed with the SEC on February 28, 2019.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts and disclosures reported in the financial statements. Management uses significant judgment when making estimates related to its revenue related allowances, common stock valuation and related stock-based compensation, as well as certain accrued liabilities. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates.
Significant Accounting Policies	Significant Accounting Policies There have been no significant changes to the accounting policies during the three months ended March 31, 2019, as compared to the significant accounting policies described in Note 2 of the “Notes to Consolidated Financial Statements” in the Company’s audited consolidated financial statements included in its Annual Report, except as described below. Leases The Company adopted Accounting Standards Codification, or ASC, Topic 842, Leases, $1.6 The results Leases For agreements with a term of more than twelve months, the Company determines if an agreement is a lease at inception. Operating lease liabilities represent an obligation to make lease payments arising from the lease agreement. Operating lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the remaining lease term. In determining the present value of lease payments, the Company estimates its incremental borrowing rate as the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term, of an amount equal to the lease payments in a similar economic environment. Operating lease liabilities are included in other current and non-current liabilities in our condensed consolidated balance sheet. Right-of-use assets represent our right to use an underlying asset for the lease term and are classified as other non-current assets. Lease expense is recognized on a straight-line basis over the expected lease term.
Recent Accounting Pronouncements	Recent Accounting Pronouncements There have been no significant changes to the disclosures in the recent accounting pronouncements during the three months ended March 31, 2019, as compared to the recent accounting pronouncements described in Note 2 of the “Notes to Consolidated Financial Statements” in the Company’s audited consolidated financial statements included in its Annual Report.

Composition of Certain Financ_2

Composition of Certain Financial Statement Items (Tables)	3 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Accounts Receivable	Accounts Receivable (in thousands): March 31, December 31, 2019 2018 Accounts receivable $ 17,400 $ 19,696 Allowance for doubtful accounts (69 ) (80 ) $ 17,331 $ 19,616
Components of Inventory	Inventory (in thousands): March 31, 2019 December 31, 2018 Raw materials $ 2,246 $ 1,872 Work-in-process 68 368 Finished goods 11,602 9,346 $ 13,916 $ 11,586

Cash, Cash Equivalents and Sh_2

Cash, Cash Equivalents and Short-term Investments (Tables)	3 Months Ended
	Mar. 31, 2019
Cash and Cash Equivalents [Abstract]
Summary of Cash, Cash Equivalents and Available-for-Sale Investments by Type of Instrument	The following is a summary of cash, cash equivalents and short-term investments, available-for-sale, by type of instrument (in thousands): March 31, December 31, 2019 2018 Amortized Gross Unrealized Estimated Amortized Gross Unrealized Estimated Cost Gains Losses Fair Value Cost Gains Losses Fair Value Cash $ 5,202 $ — $ — $ 5,202 $ 4,168 $ — $ — $ 4,168 Money market funds 2,139 — — 2,139 2,308 — — 2,308 Corporate debt securities 39,595 21 (3 ) 39,613 45,177 5 (17 ) 45,165 Commercial paper 50,614 19 (1 ) 50,632 49,161 — (29 ) 49,132 $ 97,550 $ 40 $ (4 ) $ 97,586 $ 100,814 $ 5 $ (46 ) $ 100,773 Reported as: Cash and cash equivalents $ 8,593 $ 9,464 Short-term investments, available-for-sale 88,993 91,309 $ 97,586 $ 100,773

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2019
Fair Value Disclosures [Abstract]
Summary of Cash, Cash Equivalents and Available-for-Sale Investments Measured at Fair Value on Recurring Basis	The following is a summary of cash, cash equivalents and short-term investments, available-for-sale, by type of instrument measured at fair value on a recurring basis (in thousands): March 31, December 31, 2019 2018 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash $ 5,202 $ — $ — $ 5,202 $ 4,168 $ — $ — $ 4,168 Money market funds 2,139 — — 2,139 2,308 — — 2,308 Corporate debt securities — 39,613 — 39,613 — 45,165 — 45,165 Commercial paper — 50,632 — 50,632 — 49,132 — 49,132 $ 7,341 $ 90,245 $ — $ 97,586 $ 6,476 $ 94,297 $ — $ 100,773 Reported as: Cash and cash equivalents $ 8,593 $ 9,464 Short-term investments, available-for-sale 88,993 91,309 $ 97,586 $ 100,773

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
Schedule of Right of Use Asset	Right-of-use assets (in thousands): March 31, 2019 Upon the adoption of Topic 842 $ 1,572 Additional warehouse operating lease 117 Less: accumulated amortization (266 ) $ 1,423
Schedule of operating leases liabilities	Operating lease liabilities (in thousands): March 31, 2019 Current portion included in other current liabilities $ 1,786 Non-current portion included in other non-current liabilities 156 $ 1,942
Schedule of Annual Operating Lease Payments	Future minimum annual operating lease payments are as follows (in thousands): March 31, Fiscal Years Ending December 31, 2019 2019 (remaining) $ 1,247 2020 782 Thereafter — Total minimum payments 2,029 Less: present value adjustment (87 ) Total $ 1,942

Stock-based Compensation Expe_2

Stock-based Compensation Expense (Tables)	3 Months Ended
	Mar. 31, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Stock Option Activity	A summary of the Company’s stock option activity and related information (options in thousands): Three Months Ended March 31, 2019 Weighted Average Options Exercise Price Outstanding, beginning of period 3,688 $ 20.84 Granted 815 31.18 Exercised (284 ) 15.74 Forfeited (77 ) 23.48 Outstanding, end of period 4,142 23.18 Exercisable 1,945 18.87
Summary of Restricted Stock Units Activity	A summary of the Company’s RSU activity and related information (RSUs in thousands): Three Months Ended March 31, 2019 Weighted Average RSUs Fair Value Outstanding, beginning of period 350 $ 24.92 Awarded 205 32.42 Vested (133 ) 22.07 Forfeited (14 ) 25.49 Outstanding, end of period 408 29.60
Summary of Stock Based Compensation Expense	Total stock-based compensation expense recognized is as follows (in thousands): Three Months Ended March 31, 2019 2018 Cost of sales $ 236 $ 260 Selling, general and administrative 2,974 2,366 Research and development 659 512 $ 3,869 $ 3,138

Net Loss per Share (Tables)

Net Loss per Share (Tables)	3 Months Ended
	Mar. 31, 2019
Earnings Per Share [Abstract]
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]	The following potentially dilutive securities outstanding have been excluded from the computations of weighted average shares outstanding because such securities have an antidilutive impact due to losses reported (in common stock equivalent shares, in thousands): Three Months Ended March 31, 2019 2018 Common stock options 4,142 4,087 Restricted stock units 408 371 Employee stock purchase plan shares 74 190 4,624 4,648

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands	Jan. 02, 2019	Mar. 31, 2019	Jan. 01, 2019
Summary Of Significant Accounting Policies [Line Items]
Operating Lease, Liability		$ 1,942
Operating Lease, Right-of-Use Asset		1,572
Deferred rent			$ 600
Cumulative effect on retained earnings	$ 0
Accounting Standard Update 2018-11 [Member]
Summary Of Significant Accounting Policies [Line Items]
Operating Lease, Liability		2,200
Operating Lease, Right-of-Use Asset		$ 1,600

Composition of Certain Financ_3

Composition of Certain Financial Statement Items - Accounts Receivable (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Receivables [Abstract]
Accounts receivable	$ 17,400	$ 19,696
Allowance for doubtful accounts	(69)	(80)
Accounts receivable, net	$ 17,331	$ 19,616	[1]
[1]	Amounts have been derived from the December 31, 2018 audited consolidated financial statements included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission.

Composition of Certain Financ_4

Composition of Certain Financial Statement Items - Components of Inventory (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 2,246	$ 1,872
Work-in-process	68	368
Finished goods	11,602	9,346
Inventory	$ 13,916	$ 11,586	[1]
[1]	Amounts have been derived from the December 31, 2018 audited consolidated financial statements included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission.

Composition of Certain Financ_5

Composition of Certain Financial Statement Items - Additional Information (Detail) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Capitalized stock-based compensation expense	$ 0.7	$ 0.6

Cash, Cash Equivalents and Sh_3

Cash, Cash Equivalents and Short-term Investments - Summary of Cash, Cash Equivalents and Available-for-Sale Investments by Type of Instrument (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018		Mar. 31, 2018	Dec. 31, 2017
Net Investment [Line Items]
Cash, cash equivalents and available-for-sale investments, Amortized Cost	$ 97,550	$ 100,814
Cash, cash equivalents and available-for-sale investments, Gross Unrealized Gains	40	5
Cash, cash equivalents and available-for-sale investments, Gross Unrealized Losses	(4)	(46)
Cash, cash equivalents and available-for-sale investments, Estimated Fair Value	97,586	100,773
Cash, cash equivalents, Estimated Fair Value	8,593	9,464	[1]	$ 10,526	$ 19,837
Short-term investments, available-for-sale, Estimated Fair Value	88,993	91,309	[1]
Cash and cash equivalents and short-term investments, available-for-sale	97,586	100,773
Cash [Member]
Net Investment [Line Items]
Cash, cash equivalents and available-for-sale investments, Amortized Cost	5,202	4,168
Cash, cash equivalents and available-for-sale investments, Estimated Fair Value	5,202	4,168
Money Market Funds [Member]
Net Investment [Line Items]
Cash, cash equivalents and available-for-sale investments, Amortized Cost	2,139	2,308
Cash, cash equivalents and available-for-sale investments, Estimated Fair Value	2,139	2,308
Corporate Debt Securities [Member]
Net Investment [Line Items]
Cash, cash equivalents and available-for-sale investments, Amortized Cost	39,595	45,177
Cash, cash equivalents and available-for-sale investments, Gross Unrealized Gains	21	5
Cash, cash equivalents and available-for-sale investments, Gross Unrealized Losses	(3)	(17)
Cash, cash equivalents and available-for-sale investments, Estimated Fair Value	39,613	45,165
Commercial Paper [Member]
Net Investment [Line Items]
Cash, cash equivalents and available-for-sale investments, Amortized Cost	50,614	49,161
Cash, cash equivalents and available-for-sale investments, Gross Unrealized Gains	19
Cash, cash equivalents and available-for-sale investments, Gross Unrealized Losses	(1)	(29)
Cash, cash equivalents and available-for-sale investments, Estimated Fair Value	$ 50,632	$ 49,132
[1]	Amounts have been derived from the December 31, 2018 audited consolidated financial statements included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission.

Cash, Cash Equivalents and Sh_4

Cash, Cash Equivalents and Short-term Investments - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Investments with a contractual maturity of greater than one year	$ 0	$ 0
Other-than-temporary impairment charges	$ 0	$ 0

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Summary of Cash, Cash Equivalents and Short-Term Investments Available-for-Sale, by Type of Instrument (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018		Mar. 31, 2018	Dec. 31, 2017
Net Investment Income [Line Items]
Cash and cash equivalents	$ 8,593	$ 9,464	[1]	$ 10,526	$ 19,837
Short-term investments, available-for-sale	88,993	91,309	[1]
Cash and cash equivalents and short-term investments, available-for-sale	97,586	100,773
Fair Value on Recurring Basis [Member]
Net Investment Income [Line Items]
Cash and cash equivalents and short-term investments, available-for-sale	97,586	100,773
Fair Value on Recurring Basis [Member] | Cash [Member]
Net Investment Income [Line Items]
Cash and cash equivalents and short-term investments, available-for-sale	5,202	4,168
Fair Value on Recurring Basis [Member] | Money Market Funds [Member]
Net Investment Income [Line Items]
Cash and cash equivalents and short-term investments, available-for-sale	2,139	2,308
Fair Value on Recurring Basis [Member] | Corporate Debt Securities [Member]
Net Investment Income [Line Items]
Cash and cash equivalents and short-term investments, available-for-sale	39,613	45,165
Fair Value on Recurring Basis [Member] | Commercial Paper [Member]
Net Investment Income [Line Items]
Cash and cash equivalents and short-term investments, available-for-sale	50,632	49,132
Fair Value on Recurring Basis [Member] | Level 1 [Member]
Net Investment Income [Line Items]
Cash and cash equivalents and short-term investments, available-for-sale	7,341	6,476
Fair Value on Recurring Basis [Member] | Level 1 [Member] | Cash [Member]
Net Investment Income [Line Items]
Cash and cash equivalents and short-term investments, available-for-sale	5,202	4,168
Fair Value on Recurring Basis [Member] | Level 1 [Member] | Money Market Funds [Member]
Net Investment Income [Line Items]
Cash and cash equivalents and short-term investments, available-for-sale	2,139	2,308
Fair Value on Recurring Basis [Member] | Level 1 [Member] | Corporate Debt Securities [Member]
Net Investment Income [Line Items]
Cash and cash equivalents and short-term investments, available-for-sale	0
Fair Value on Recurring Basis [Member] | Level 1 [Member] | Commercial Paper [Member]
Net Investment Income [Line Items]
Cash and cash equivalents and short-term investments, available-for-sale	0
Fair Value on Recurring Basis [Member] | Level 2 [Member]
Net Investment Income [Line Items]
Cash and cash equivalents and short-term investments, available-for-sale	90,245	94,297
Fair Value on Recurring Basis [Member] | Level 2 [Member] | Cash [Member]
Net Investment Income [Line Items]
Cash and cash equivalents and short-term investments, available-for-sale	0
Fair Value on Recurring Basis [Member] | Level 2 [Member] | Money Market Funds [Member]
Net Investment Income [Line Items]
Cash and cash equivalents and short-term investments, available-for-sale	0
Fair Value on Recurring Basis [Member] | Level 2 [Member] | Corporate Debt Securities [Member]
Net Investment Income [Line Items]
Cash and cash equivalents and short-term investments, available-for-sale	39,613	45,165
Fair Value on Recurring Basis [Member] | Level 2 [Member] | Commercial Paper [Member]
Net Investment Income [Line Items]
Cash and cash equivalents and short-term investments, available-for-sale	50,632	$ 49,132
Fair Value on Recurring Basis [Member] | Level 3 [Member]
Net Investment Income [Line Items]
Cash and cash equivalents and short-term investments, available-for-sale	0
Fair Value on Recurring Basis [Member] | Level 3 [Member] | Cash [Member]
Net Investment Income [Line Items]
Cash and cash equivalents and short-term investments, available-for-sale	0
Fair Value on Recurring Basis [Member] | Level 3 [Member] | Money Market Funds [Member]
Net Investment Income [Line Items]
Cash and cash equivalents and short-term investments, available-for-sale	0
Fair Value on Recurring Basis [Member] | Level 3 [Member] | Corporate Debt Securities [Member]
Net Investment Income [Line Items]
Cash and cash equivalents and short-term investments, available-for-sale	0
Fair Value on Recurring Basis [Member] | Level 3 [Member] | Commercial Paper [Member]
Net Investment Income [Line Items]
Cash and cash equivalents and short-term investments, available-for-sale	$ 0
[1]	Amounts have been derived from the December 31, 2018 audited consolidated financial statements included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission.

Fair Value of Financial Instr_4

Fair Value of Financial Instruments - Additional Information (Detail) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Transfer of assets from level 1 to level 2	$ 0	$ 0
Transfer of liabilities from level 1 to level 2	0	0
Transfer of assets from level 2 to level 1	0	0
Transfer of liabilities from level 2 to level 1	$ 0	$ 0

Leases - Additional Information

Leases - Additional Information (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2019USD ($)ft²	Mar. 31, 2018USD ($)
Operating Lease, Payments | $	$ 0.4
Operating Lease, Weighted Average Remaining Lease Term	1 year 2 months 12 days
Rent expense | $	$ 0.5	$ 0.5
Lease agreement description	This lease is for 50,400 square feet and includes a renewal provision allowing the Company to extend this lease for an additional three years at 95% of the then-current fair market rental rate.
Total area under operating lease agreement | ft² | ft²	50,400
Headquarters [Member] | Warehouse [Member]
Operating lease , expiration date	May 31, 2020
Total area under operating lease agreement | ft² | ft²	10,000
Operating lease, Date	2019-03

Leases - Right-of-Use asset (De

Leases - Right-of-Use asset (Detail) $ in Thousands	Mar. 31, 2019USD ($)
Right-of-use asset	$ 1,572
Less: accumulated amortization	(266)
Right-of-use asset net	1,423
Warehouse [Member]
Right-of-use asset	$ 117

Leases - Operating Lease Liabil

Leases - Operating Lease Liabilities (Detail) $ in Thousands	Mar. 31, 2019USD ($)
Current portion included in other current liabilities	$ 1,786
Non-current portion included in other non-current liabilities	156
Total	$ 1,942

Leases - Operating Lease Paymen

Leases - Operating Lease Payments (Detail) $ in Thousands	Mar. 31, 2019USD ($)
2019 (remaining)	$ 1,247
2020	782
Total minimum payments	2,029
Less: present value adjustment	(87)
Total	$ 1,942

Stock-based Compensation Expe_3

Stock-based Compensation Expense - Additional Information (Detail) - USD ($) $ in Millions	Jan. 01, 2018	Jun. 30, 2018	Mar. 31, 2019	Mar. 31, 2018	Jan. 01, 2019	Jul. 23, 2014
Unearned stock-based compensation			$ 37.8
Weighted average period for unearned stock-based compensation to be recognized			2 years 10 months 24 days
Shares Issued			0
Employee stock purchase plan shares [Member]
Common stock, capital shares reserved for future issuance, increase during period		1,200,000
Shares authorized for future issuance		1,696,092				496,092
Common Stock Options [Member]
Aggregate intrinsic value of options outstanding and exercisable			$ 26.5
Aggregate intrinsic value of options outstanding			40
Aggregate intrinsic value of options exercised			$ 5.1	$ 7.9
Weighted-average remaining contractual term of options outstanding			7 years 9 months 18 days
Weighted-average remaining contractual term of options exercisable			6 years 7 months 6 days
Restricted Stock Units (RSUs) [Member]
Aggregate intrinsic value of RSUs outstanding			$ 13.1
Weighted-average remaining contractual term of RSUs outstanding			2 years 4 months 24 days
2014 Equity Incentive Plan [Member]
Percentage of shares outstanding			3.00%
Shares reserved for issuance					8,965,704
Common stock, capital shares reserved for future issuance, increase during period	920,190

Stock-based Compensation Expe_4

Stock-based Compensation Expense - Summary of Stock Option Activity (Detail) - Common Stock Options [Member] shares in Thousands	3 Months Ended
	Mar. 31, 2019$ / sharesshares
Class of Stock [Line Items]
Options outstanding, beginning of period | shares	3,688
Options granted | shares	815
Options exercised | shares	(284)
Options forfeited | shares	(77)
Options outstanding, end of period | shares	4,142
Options exercisable | shares	1,945
Options price, outstanding, beginning of period | $ / shares	$ 20.84
Options price, granted | $ / shares	31.18
Options price, exercised | $ / shares	15.74
Options price, forfeited | $ / shares	23.48
Options price, outstanding, end of period | $ / shares	23.18
Options price, exercisable | $ / shares	$ 18.87

Stock-based Compensation Expe_5

Stock-based Compensation Expense - Summary of Restricted Stock Units Activity (Detail) - Restricted stock units [Member] shares in Thousands	3 Months Ended
	Mar. 31, 2019$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding, beginning of period | shares	350
Awarded | shares	205
Vested | shares	(133)
Forfeited | shares	(14)
Outstanding, end of period | shares	408
Outstanding, beginning of period | $ / shares	$ 24.92
Awarded | $ / shares	32.42
Vested | $ / shares	22.07
Forfeited | $ / shares	25.49
Outstanding, end of period | $ / shares	$ 29.60

Stock-based Compensation Expe_6

Stock-based Compensation Expense - Summary of Stock Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 3,869	$ 3,138
Cost of Sales [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	236	260
Selling, General and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	2,974	2,366
Research and Development [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 659	$ 512

Net Loss per Share - Schedule o

Net Loss per Share - Schedule of Potentially Dilutive Securities Outstanding Excluded from the Computations of Diluted Weighted Average Shares Outstanding (Detail) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	4,624	4,648
Common Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	4,142	4,087
Restricted Stock Units (RSUs) [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	408	371
Employee stock purchase plan shares [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	74	190