Pacific Biosciences of California (PACB) 10-Q 5 May 16 2016 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2016	Apr. 30, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Trading Symbol	PACB
Entity Registrant Name	PACIFIC BIOSCIENCES OF CALIFORNIA, INC.
Entity Central Index Key	1,299,130
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		87,168,677

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current assets
Cash and cash equivalents	$ 20,080	$ 33,629
Investments	71,451	48,641
Accounts receivable	8,009	5,245
Inventory	12,162	10,955
Prepaid expenses and other current assets	7,351	12,071
Total current assets	119,053	110,541
Property and equipment, net	9,093	8,548
Long-term restricted cash	4,500	4,500
Other long-term assets	7,529	7,518
Total assets	140,175	131,107
Current liabilities
Accounts payable	4,734	4,749
Accrued expenses	12,201	15,551
Deferred service revenue, current	6,371	6,815
Deferred contractual revenue, current	7,260	10,822
Other liabilities, current	1,444	241
Total current liabilities	32,010	38,178
Deferred service revenue, non-current	882	1,143
Deferred contractual revenue, non-current	1,278	1,312
Other liabilities, non-current	1,462	1,386
Notes payable	15,216	14,948
Financing derivative	551	600
Total liabilities	$ 51,399	$ 57,567
Commitments and contingencies
Stockholders' equity
Preferred Stock, $0.001 par value: Authorized 50,000 shares; No shares issued or outstanding
Common Stock, $0.001 par value: Authorized 1,000,000 shares; Issued and outstanding 86,986 shares at March 31, 2016 and 79,983 shares at December 31, 2015	$ 87	$ 80
Additional paid-in-capital	821,169	786,636
Accumulated other comprehensive income (loss)	41	(7)
Accumulated deficit	(732,521)	(713,169)
Total stockholders' equity	88,776	73,540
Total liabilities and stockholders' equity	$ 140,175	$ 131,107

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
Condensed Consolidated Balance Sheets [Abstract]
Preferred Stock, par value	$ 0.001	$ 0.001
Preferred Stock, shares authorized	50,000,000	50,000,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0
Common Stock, par value	$ 0.001	$ 0.001
Common Stock, shares authorized	1,000,000,000	1,000,000,000
Common Stock, shares issued	86,986,000	79,983,000
Common Stock, shares outstanding	86,986,000	79,983,000

Condensed Consolidated Statemen

Condensed Consolidated Statements Of Operations And Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenue:
Product revenue	$ 12,379	$ 11,308
Service and other revenue	3,152	2,741
Contractual revenue	3,596	3,596
Total revenue	19,127	17,645
Cost of Revenue:
Cost of product revenue	6,880	9,732
Cost of service and other revenue	2,743	1,986
Total cost of revenue	9,623	11,718
Gross profit	9,504	5,927
Operating Expense:
Research and development	16,361	14,483
Sales, general and administrative	11,708	10,772
Total operating expense	28,069	25,255
Operating loss	(18,565)	(19,328)
Interest expense	(779)	(697)
Other expense, net	(8)	(148)
Net loss	(19,352)	(20,173)
Other comprehensive loss:
Unrealized gain on investments	48	7
Comprehensive loss	$ (19,304)	$ (20,166)
Net loss per share:
Basic and diluted net loss per share	$ (0.23)	$ (0.27)
Shares used in computing basic and diluted net loss per share	83,604	74,149

Condensed Consolidated Stateme5

Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities
Net loss	$ (19,352)	$ (20,173)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation	848	908
Amortization of debt discount and financing costs	268	220
Stock-based compensation	4,581	3,255
Other items	74	(69)
Changes in assets and liabilities
Accounts receivable	(2,865)	(1,881)
Inventory	(2,119)	(2,122)
Prepaid expenses and other assets	4,709	43
Accounts payable	(39)	983
Accrued expenses	(3,350)	(2,003)
Deferred service revenue	(705)	609
Deferred contractual revenue	(3,596)	(3,596)
Other liabilities	1,279	(85)
Net cash used in operating activities	(20,267)	(23,911)
Cash flows from investing activities
Purchase of property and equipment	(457)	(717)
Disposal of property and equipment	111
Purchase of investments	(43,383)	(25,265)
Sales of investments	4,949	6,817
Maturities of investments	15,539	34,464
Net cash provided by (used in) investing activities	(23,241)	15,299
Cash flows from financing activities
Proceeds from issuance of common stock from equity plans	3,423	2,434
Proceeds from issuance of common stock from "at-the-market" offering, net of issuance costs	26,536
Net cash provided by financing activities	29,959	2,434
Net decrease in cash and cash equivalents	(13,549)	(6,178)
Cash and cash equivalents at beginning of period	33,629	36,449
Cash and cash equivalents at end of period	20,080	$ 30,271
Supplemental disclosure of non-cash investing and financing activities
Inventory transferred to property and equipment	$ 912

Overview

Overview	3 Months Ended
	Mar. 31, 2016
Overview [Abstract]
Overview	NOTE 1. OVERVIEW Pacific Biosciences of California, Inc. (the “Company,” “we,” “us,” or “our,”) designs, develops and manufactures sequencing systems to help scientists resolve genetically complex problems. Based on our novel Single Molecule, Real-Time (SMRT ® ) Sequencing technology, our products enable: de novo genome assembly to finish genomes in order to more fully identify, annotate and decipher genomic structures; full-length transcript analysis to improve annotations in reference genomes, characterize alternatively spliced isoforms in important gene families, and find novel genes; targeted sequencing to more comprehensively characterize genetic variations; and real-time kinetic information for epigenome characterization . Our technology provides high accuracy, ultra-long reads, uniform coverage, and is the only DNA sequencing technology that provides the ability to simultaneously detect epigenetic changes . PacBio ® sequencing systems, including consumables and software, provide a simple, fast, end-to-end workflow for SMRT Sequencing. In September 2015, we announced that we had launched a new nucleic acid sequencing platform, the PacBio Sequel™ System, which will provide higher throughput, more scalability, a reduced footprint and lower sequencing project costs compared to the PacBio ® RS II System, while maintaining the existing benefits of our SMRT Technology. The names “Pacific Biosciences,” “PacBio,” “SMRT,” “SMRTbell,” “Sequel” and our logo are our trademarks. 

Summary Of Significant Accounti

Summary Of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2016
Summary Of Significant Accounting Policies [Abstract]
Summary Of Significant Accounting Policies	NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation In the opinion of management, our accompanying unaudited Condensed Consolidated Financial Statements (“Financial Statements”) have been prepared on a consistent basis with our December 31, 2015 audited Consolidated Financial Statements and include all adjustments, consisting of only normal recurring adjustments, necessary to fairly state the information set forth herein. Certain prior year amounts in the Financial Statements and notes thereto have been reclassified to conform to the current year’s presentation. The Financial Statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and, as permitted by such rules and regulations, omit certain information and footnote disclosures necessary to present the statements in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). These Financial Statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2015. The results of operations for the three-month period ended March 31, 2016 are not necessarily indicative of the results to be expected for the entire year or any future periods. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes to the financial statements. Our estimates include, but are not limited to, the valuation of inventory, revenue valuation, the valuation of a financing derivative and long-term notes, the valuation and recognition of share-based compensation, the delivery period for collaboration agreements, the useful lives assigned to long-lived assets, and the computation provisions for income taxes. Actual results could differ materially from these estimates . Fair Value of Financial Instruments Assets and liabilities measured at fair value on a recurring basis The following table sets forth the fair value of our financial assets and liabilities measured on a recurring basis as of March 31, 2016 and December 31, 2015, respectively:       (in thousands) March 31, 2016 December 31, 2015  Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total  Assets  Cash and cash equivalents:  Cash and money market funds $ 12,031 $ — $ — $ 12,031 $ 22,034 $ — $ — $ 22,034  Commercial paper — 8,049 — 8,049 — 8,595 — 8,595  US government & agency securities — — — — — 3,000 — 3,000  Total cash and cash equivalents 12,031 8,049 — 20,080 22,034 11,595 — 33,629  Investments:  Commercial paper — 22,232 — 22,232 — 15,903 — 15,903  Corporate debt securities — 6,838 — 6,838 — 1,265 — 1,265  US government & agency securities — 41,084 — 41,084 — 28,136 — 28,136  Asset backed securities — 1,297 — 1,297 — 3,337 — 3,337  Total investments — 71,451 — 71,451 — 48,641 — 48,641  Long-term restricted cash:  Cash 4,500 — — 4,500 4,500 — — 4,500  Total assets measured at fair value $ 16,531 $ 79,500 $ — $ 96,031 $ 26,534 $ 60,236 $ — $ 86,770   Liabilities  Financing derivative $ — $ — $ 551 $ 551 $ — $ — $ 600 $ 600  Total liabilities measured at fair value $ — $ — $ 551 $ 551 $ — $ — $ 600 $ 600  We classify our cash deposits and money market funds within Level 1 of the fair value hierarchy because they are valued using bank balances or quoted market prices. We classify our investments as Level 2 instruments based on market pricing and other observable inputs. We did not classify any of our investments within Level 3 of the fair value hierarchy. During the three-month periods ended March 31, 2016 and 2015, there were no impairments of our investments. The estimated fair value of the Financing Derivative liability (as defined in Note 6. Notes Payable) was determined using Level 3 inputs, or significant unobservable inputs. Changes to the estimated fair value of the Financing Derivative are recorded in “Other income (expense), net” in the condensed consolidated statements of operations and comprehensive loss. The following table provides the changes in the estimated fair value of the Financi ng Derivative during the three-month period ended March 31, 2016 (in thousands):     Financing Derivative Amount  Balance as of December 31, 2015 $ 600  Gain on change in estimated fair value (49)  Balance as of March 31, 2016 $ 551  During the three-month period ended March 31, 2016 there were no transfers between Level 1, Level 2, or Level 3 assets or liabilities reported at fair value on a recurring basis and the valuation techniques used did not change compared to our established practice. Financial assets and liabilities not measured at fair value on a recurring basis The carrying amount of our accounts receivable, prepaid expenses, other current assets, accounts payable, accrued expenses and other liabilities, current, approximate fair value due to their short maturities. The carrying value of our other liabilities, non-current, approximates fair value due to the time to maturity and prevailing market rates. We determined the estimated fair value of the Notes (as defined in Note 6. Notes Payable) using Level 3 inputs, or significant unobservable inputs. The estimated fair value of the Notes was determined by comparing the difference between the estimated fair value of the Notes with and without the Financing Derivative by calculating the respective present values from future cash flows using a weighted average market yield of 13.3% and 13.5% at March 31, 2016 and December 31, 2015, respectively.  The estimated fair value and carrying value of the Notes are as follows (in thousands):      March 31, 2016 December 31, 2015  Fair Value Carrying Value Fair Value Carrying Value  Notes payable $ 18,278 $ 15,216 $ 18,037 $ 14,948  Net Loss per Share The following outstanding common stock options and warrants to purchase common stock were excluded from the computation of diluted net loss per share for the periods presented because including them would have had an anti-dilutive effect:     Three Months Ended March 31,  (in thousands) 2016 2015  Options outstanding 22,542 18,796  Warrants to purchase common stock 1,682 5,500  Recent Accounting Pronouncements  Recently Adopted Accounting Standards In July 2015, the Financial Accounting Standards Board (“FASB”) FASB issued Accounting Standards Update (“ASU’) No. 2015-11, Simplifying the Measurement of Inventory , which simplifies the subsequent measurement of inventory by replacing today’s lower of cost or market test with a lower of cost and net realizable value test. The guidance applies only to inventories for which cost is determined by methods other than last-in first-out (LIFO) and the retail inventory method (RIM). Entities that use LIFO or RIM will continue to use existing impairment models (e.g., entities using LIFO would apply the lower of cost or market test). ASU 2015-11 is effective for annual report periods beginning after December 15, 2016 and is effective for us in the first quarter of 2017. Early adoption is permitted as of the beginning of an interim or annual reporting period. The new guidance must be applied prospectively after the date of adoption. We have elected to early adopt ASU 2015-11 effective for the three-month period ended March 31, 2016, as permitted by the standard. The early adoption of this update did not have a material impact on our condensed consolidated financial statements.  Recently Issued Accounting Standards In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which amends the current stock compensation guidance. The amendments simplify the accounting for the taxes related to stock based compensation, including adjustments to how excess tax benefits and a company's payments for tax withholdings should be classified. The standard is effective for fiscal periods beginning after December 15, 2016, with early adoption permitted. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases. The guidance in ASU 2016-02 supersedes the lease recognition requirements in ASC Topic 840, Leases. ASU 2016-02 requires an entity to recognize assets and liabilities arising from a lease for both financing and operating leases, along with additional qualitative and quantitative disclosures. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either the retrospective or the cumulative effect transition method. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date , which deferred the effective date of the new revenue standard for periods beginning after December 15, 2016 to December 15, 2017, with early adoption permitted but not earlier than the original effective date. Accordingly, the updated standard is effective for us in the first quarter of 2018. We are currently evaluating the new guidance to determine the impact it may have to our condensed consolidated financial statements. 

Contractual Revenue

Contractual Revenue	3 Months Ended
	Mar. 31, 2016
Contractual Revenue [Abstract]
Contractual Revenue	NOTE 3. CONTRACTUAL REVENUE During September 2013, we entered into a Development, Commercialization and License Agreement (the “Roche Agreement”) with F. Hoffman-La Roche Ltd (“Roche”), pursuant to which we account for, and recognize as revenue, the up-front payment received thereunder using the proportional performance method over the periods in which the delivery of elements pursuant to the Roche Agreement occurs. We recognize revenue under this agreement using a straight-line convention over the service periods of the deliverables as this method approximates our performance of services pursuant to the agreement. Out of the $35.0 million upfront cash payment received, quarterly amortization of $1.7 million has been recognized as contractual revenue from the fourth quarter of 2013 to the fourth quarter of 2014. Beginning in the three-month period ended March 31, 2015, we revised the estimated development period related to our contractual revenue amortization based on increasing certainty of the development time on a prospective approach and quarterly amortization of $3.6 million has been recognized as contractual revenue for each of the four quarters of 2015 and for the first quarter of 2016. Further, the Roche Agreement provides for additional payments totaling up to $40.0 million upon the achievement of certain development milestones. Consideration from development milestones is recognized in the period in which a milestone is achieved only if the milestone is considered substantive in its entirety. We achieved the first development milestone under the Roche Agreement and recorded the related $10.0 million as contractual revenue during the year ended December 31, 2014. We achieved the second and third (final) development milestones under the Roche Agreement and recognized the related $10.0 million and $20.0 million as contractual revenue during the three-month period ended June 30, 2015 and December 31, 2015, respectively.

Cash, Cash Equivalents And Inve

Cash, Cash Equivalents And Investments	3 Months Ended
	Mar. 31, 2016
Cash, Cash Equivalents And Investments [Abstract]
Cash, Cash Equivalents And Investments	 NOTE 4. CASH, CASH EQUIVALENTS AND INVESTMENTS The following tables summarize our cash, cash equivalents and investments as of March 31, 2016 and December 31, 2015 (in thousands):     March 31, 2016  Gross Gross  Amortized unrealized unrealized Fair  Cost gains losses Value  Cash and cash equivalents:  Cash and money market funds $ 12,031 $ — $ — $ 12,031  Commercial paper 8,049 — — 8,049  Total cash and cash equivalents 20,080 — — 20,080  Investments:  Commercial paper 22,227 7 (2) 22,232  Corporate debt securities 6,836 3 (1) 6,838  Asset backed securities 1,297 — — 1,297  US government & agency securities 41,050 34 — 41,084  Total investments 71,410 44 (3) 71,451  Total cash, cash equivalents and investments $ 91,490 $ 44 $ (3) $ 91,531   Long-term restricted cash:  Cash 4,500 — — 4,500  Total long-term restricted cash $ 4,500 $ — $ — $ 4,500    December 31, 2015  Gross Gross  Amortized unrealized unrealized Fair  Cost gains losses Value  Cash and cash equivalents:  Cash and money market funds $ 22,034 $ — $ — $ 22,034  Commercial paper 8,595 — — 8,595  US government & agency securities 3,000 — — 3,000  Total cash and cash equivalents 33,629 — — 33,629  Investments:  Commercial paper 15,903 2 (2) 15,903  Corporate debt securities 1,266 — (1) 1,265  Asset backed securities 3,337 — — 3,337  US government & agency securities 28,142 4 (10) 28,136  Total investments 48,648 6 (13) 48,641  Total cash, cash equivalents and investments $ 82,277 $ 6 $ (13) $ 82,270   Long-term restricted cash:  Cash 4,500 — — 4,500  Total long-term restricted cash $ 4,500 $ — $ — $ 4,500    The following table summarizes the contractual maturities of our cash equivalents and available-for-sale investments, excluding money market funds, as of March 31, 2016:      (in thousands) Fair Value  Due in one year or less $ 79,500  Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without call or prepayment penalties.

Inventory

Inventory	3 Months Ended
	Mar. 31, 2016
Inventory [Abstract]
Inventory	NOTE 5 . INVENTORY  As of March 31, 2016 and December 31, 2015, our inventory consisted of the following components:     March 31, December 31,  (in thousands) 2016 2015  Purchased materials $ 4,633 $ 4,041  Work in process 4,799 3,576  Finished goods 2,730 3,338  Inventory $ 12,162 $ 10,955  

Notes Payable

Notes Payable	3 Months Ended
	Mar. 31, 2016
Notes Payable [Abstract]
Notes Payable	NOTE 6. NOTES PAYABLE Pursuant to a Facility Agreement (the “Facility Agreement”) we entered into with entities affiliated with Deerfield Management Company, L.P. (collectively, “Deerfield”) during February 2013, we issued promissory notes in the aggregate principal amount of $20.5 million (the “Notes”). The Notes bear simple interest at a rate of 8.75% per annum, payable quarterly in arrears commencing on April 1, 2013. In connection with the execution of the Facility Agreement, we issued warrants to purchase an aggregate of 5,500,000 shares of common stock immediately exercisable at an exercise price per share initially equal to $2.63 (the “Warrants”). During the three-month period ended March 31, 2016, warrants to purchase 3,818,000 shares of common stock were exercised. As of March 31, 2016, we had outstanding exercisable warrants to purchase an aggregate of 1,682,000 shares of common stock. In addition, the Facility Agreement requires us to maintain consolidated cash and cash equivalents on the last day of each calendar quarter of not less than $2.0 million. As security for our repayment of our obligations under the Facility Agreement, we granted to Deerfield a security interest in substantially all of our property. The Facility Agreement has a maximum term of seven years from inception. Subsequent to the date of the Facility Agreement, at the election of the holders of Notes representing a majority of the aggregate principal amount of the outstanding Notes, the Notes holders may elect to receive 25% of the net proceeds from any financing that includes an equity component, including without limitation, the sale or issuance of our common stock, options, warrants or other securities convertible or exchangeable for shares of our common stock, as payment of the Notes. This right is subject to certain exceptions set forth in the Facility Agreement. The holders of Notes have waived this right with respect to our sa les of stock under our current “ at-the-market” offering. The Notes holders have the option to require us to repay the Notes if we complete a Major Transaction (as defined in the Facility Agreement), including a change of control or a sale of all or substantially all of our assets. Additionally, the principal balance of the Facility Agreement may become immediately due and payable upon an Event of Default (as defined in the Facility Agreement), in which case the Notes holders would have the right to require us to repay 100% of the principal amount of the loan, plus any accrued and unpaid interest thereon. The Facility Agreement does not provide for a prepayment of the Notes at our option. Financing Derivative A number of features embedded in the Notes to the Facility Agreement required accounting for as a derivative, including the indemnification of certain withholding taxes and the acceleration of debt upon (i) a qualified financing, (ii) an Event of Default, (iii) a Major Transaction, and (iv) the exercise of the warrant via offset to debt principal. These features represent a single derivative (the “Financing Derivative”) that was bifurcated from the debt instrument and accounted for as a liability at fair value, with changes in fair value between reporting periods recorded in other income (expense), net. The estimated fair value of the Financing Derivative was determined by comparing the difference between the fair value of the Notes with and without the Financing Derivative by calculating the respective present values from future cash flows using 13.3% and 13.5% weighted average market yield at March 31, 2016 and December 31, 2015, respectively. The estimated fair value of the Financing Derivative as of both March 31, 2016 and December 31, 2015 was $0.6 million. Notes We initially recorded the Notes and Warrants at $14.1 million and $6.4 million, respectively, based upon the relative fair value allocation of the $20.5 million of proceeds. The carrying value of the Notes at the inception of the debt was $12.8 million, resulting in an original issue discount of $7.7 million. As of March 31, 2016 and December 31, 2015, a debt discount of $5.2 million and $5.4 million, respectively, remained to be amortized through February 2020 , the maturity of the Notes. 

Leases

Leases	3 Months Ended
	Mar. 31, 2016
Leases [Abstract]
Leases	NOTE 7. LEASES In December 2009 we entered into a lease agreement for a manufacturing and office facility in Menlo Park. In order for the facility to meet our needs and operating requirements, substantial tenant improvements, including improvements to the structural elements and principal operating systems of the facility, were necessary. The lessor provided a tenant improvement allowance of $1.8 million to apply towards the necessary improvements and we remained obligated for additional amounts over the afforded allowance. Due to our involvement in and the nature of the renovations made to the facility and our obligations to fund the costs of renovations exceeding the incentives afforded to us, we account for the facility as if we are the owner. Accordingly, we recorded $3.0 million of building and leasehold improvement assets, reflecting the $1.2 million fair value of the facility prior to commencing renovations and the $1.8 million of landlord incentives within property and equipment, net and a corresponding liability recorded to facility financing obligation. As a result of the lease amendment agreement described below, future rent expense associated with our existing Menlo Park facility leases was reduced to zero . The remaining long-term facility financing obligations associated with these leases, presented as “Other liabilities, non-current” on the condensed consolidated balance sheets at March 31, 2016 and December 31, 2015, were $1.5 million and $1.4 million, respectively. Lease Amendment Agreement On July 23, 2015, we entered into a Lease Amendment Agreement (the “Lease Amendment Agreement”) with Peninsula Innovation Partners, LLC (the “Existing Landlord”), which amends the terms and conditions of certain of our existing Menlo Park facility real property leases. The Lease Amendment Agreement provides for, among other things, amendments of the term for certain of the existing leases, the termination of all renewal, expansion and extension rights contained in any of the existing leases with the Existing Landlord (including our options to extend the terms for certain of the existing leases for two consecutive five-year periods), as well as rent abatement for a specified period of time. As consideration for our agreement to amend the existing leases pursuant to the Lease Amendment Agreement, and subject to the terms and conditions contained therein, we became eligible to receive up to four payments of $5.0 million each from the Existing Landlord over time (the “Landlord Payments”), and rent abatement for the remainder of the lease. In the event that we breach any of the leases and fail to cure such breach within the time permitted, the Existing Landlord would have no obligation to make the final $5.0 million payment. On September 1, 2015, the permitting process related to an architectural approval and a change of use permit with respect to our proposed new premises at 1315 O’Brien Drive, Menlo Park, California (the “O’Brien Premises”) was completed, which satisfied the contingencies under the Lease Amendment Agreement. As a result, we recorded $23.0 million in “Gain on lease amendments” in the consolidated statements of operations and comprehensive loss for the three-month period ended September 30, 2015, reflecting that our rent payments were reduced to zero for the remaining term of our existing Menlo Park facility real property leases, the aggregate of $20.0 million in Landlord Payments became receivable and any associated financing obligation was revalued. Of the $20.0 million in Landlord Payments, the first $5.0 million Landlord Payment was received in September 2015 and the second $5.0 million Landlord Payment was received in February 2016. At March 31, 2016, the third $5.0 million Landlord Payment was recorded as a short term receivable in “Prepaid Expenses and Other Current Assets” and the final $5.0 million was recorded in “Other Long-term Assets” in the condensed consolidated balance sheets . We do not believe that there are any remaining performance obligations relating to the remaining Landlord Payments. O’Brien Lease Agreement On July 22, 2015, we entered into a new lease agreement (the “O’Brien Lease”) with respect to the O’Brien Premises. The term of the O’Brien Lease is one hundred thirty-two (132) months, commencing on the date that is the later of April 15, 2016 or the date on which the O’Brien Premises landlord has substantially completed certain shell improvements and tenant improvements. Based on the currently agreed construction schedule, the O’Brien Lease will comme n ce no earlier than June 15, 2016 and we believe that substantial completion of the improvements will occur no earlier than August 1, 2016. Base monthly rent will be abated for the first six (6) months of the lease term and thereafter will be $540,000 per month during the first year of the lease term, with specified annual increases thereafter until reaching $711,000 per month during the last twelve (12) months of the lease term. We were required to pay $2,160,000 in prepaid rent which will be applied to the monthly rent installments due for the first to fourth months after the rent abatement period. We were required to establish a deposit of $4.5 million in the form of a letter of credit in October 2015; and, as such, $4.5 million was recorded in “Long-term restricted cash” in the condensed consolidated balance sheet as of both March 31, 2016 and December 31, 2015. The landlord is obligated to construct certain shell improvements at the landlord’s cost and expense and provide us with improvement allowances in the amount of $12.6 million. Under the O’Brien Lease, we expect to pay approximately $80 million in rent and $24 million in operating expenses over the expected lease term. In addition to the lease payments, we are also required to reimburse the landlord for certain improvement costs in excess of the tenant improvement allowances provided. These improvement costs, along with the costs associated with the anticipated move to the O’Brien Premises, are expected to be substantial in nature. These future expenditures are expected to be partially offset by the $10.0 million of future Landlord Payments from our Existing Landlord as described above. 

Stockholders' Equity And Share-

Stockholders' Equity And Share-Based Compensation	3 Months Ended
	Mar. 31, 2016
Stockholders' Equity And Share-Based Compensation [Abstract]
Stockholders' Equity And Share-Based Compensation	NOTE 8. STOCKHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION Equity Offering During the three-month period ended March 31, 2016, we issued 3.1 million shares of our common stock at an average price of $8.80 per share through our “at-the-market” offering, resulting in net proceeds of $26.5 million. As of March 31, 2016, $2.6 million of common stock remained available for future sales; however, we are not obligated to make any such sales under this program. Subject to certain exceptions set forth in our existing Facility Agreement, holders of our Notes may elect to receive 25% of the net proceeds from financing activities that include an equity component as prepayment of the Notes, to be applied first to accrued and unpaid interest and second to principal. However, in February 2016 holders representing a majority of the aggregate principal amount of the outstanding Notes waived such right in connection with the issuance and sale of shares of common stock under our current “at-the-market” offering. Warrants In connection with the execution of the Facility Agreement, we issued immediately exercisable warrants to purchase 5,500,000 shares of common stock at an exercise price per share initially equal to $2.63 , all of which were outstanding at December 31, 2015. The number of shares of common stock into which the warrants are exercisable and the exercise price will be adjusted to reflect any stock splits, payment of stock dividends, recapitalizations, reclassifications or other similar adjustments in the number of outstanding shares of common stock. The exercise price may also be adjusted to reflect certain dividends or other distributions, including distributions of stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement or similar transaction. During the three-month period ended March 31, 2016, warrants to purchase 3,818,000 shares of common stock were net exercised , resulting in approximately 3.0 million shares issued. The cashless exercise of the above warrants did not result in any additional funds being collected. As of March 31, 2016, we had outstanding exercisable warrants to purchase an aggregate of 1,682,000 shares of common stock. Equity Plans As of March 31, 2016, we had three active equity compensation plans: the 2010 Equity Incentive Plan, the 2010 Outside Director Equity Incentive Plan, and the 2010 Employee Stock Purchase Plan (“ESPP”). The following table summarizes stock option activity for all our stock option plans for the three-month period ended March 31, 2016 (in thousands, except per share amounts):     Stock Options Outstanding  Weighted  Shares available Number average  for grant of shares Exercise price exercise price  Balances, December 31, 2015 5,814 19,468 $ 0.70 – 16.00 $ 5.69  Additional shares reserved 4,799  Options granted (3,388) 3,388 7.87 – 12.85 8.69  Options exercised — (245) 0.70 – 7.59 3.11  Options canceled 69 (69) 1.16 – 12.85 5.52  Balances, March 31, 2016 7,294 22,542 $ 0.70 – 16.00 $ 6.17  Shares issued under our ESPP totaled 668,566 and 532,217 shares during the three-month periods ended March 31, 2016 and 2015, respectively. As of March 31, 2016, 1,328,736 shares of our common stock remain available for issuance under our ESPP. Stock-based Compensation Total stock-based compensation expense consists of the following (in thousands):     Three-Month Periods Ended March 31,  2016 2015  Cost of revenue $ 499 $ 298  Research and development 1,910 1,255  Sales, general and administrative 2,172 1,702  Total stock-based compensation expense $ 4,581 $ 3,255  W e estimated the fair value of employee stock options on the grant date using the Black-Scholes option pricing model. The estimated fair value of employee stock options is amortized on a straight-line basis over the requisite service period of the awards. The fair value of employee stock options was estimated using the following weighted average assumptions:     Three-Month Periods Ended March 31,  Stock Option 2016 2015  Expected term in years 6.1 6.1  Expected volatility 70% 70%  Risk-free interest rate 1.5% 1.6%  Dividend yield — —   We estimate the value of employee stock purchase rights on the grant date using the Black-Scholes option pricing model. The fair value of shares to be purchased under our ESPP was estimated using the following assumptions:     Three-Month Periods Ended March 31,  ESPP 2016 2015  Expected term in years 0.5 - 2.0 0.5 - 2.0  Expected volatility 70% 70%  Risk-free interest rate 0.5% -0.9% 0.1% -0.6%  Dividend yield — —  

Summary Of Significant Accoun14

Summary Of Significant Accounting Policies (Policy)	3 Months Ended
	Mar. 31, 2016
Summary Of Significant Accounting Policies [Abstract]
Basis Of Presentation	Basis of Presentation In the opinion of management, our accompanying unaudited Condensed Consolidated Financial Statements (“Financial Statements”) have been prepared on a consistent basis with our December 31, 2015 audited Consolidated Financial Statements and include all adjustments, consisting of only normal recurring adjustments, necessary to fairly state the information set forth herein. Certain prior year amounts in the Financial Statements and notes thereto have been reclassified to conform to the current year’s presentation. The Financial Statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and, as permitted by such rules and regulations, omit certain information and footnote disclosures necessary to present the statements in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). These Financial Statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2015. The results of operations for the three-month period ended March 31, 2016 are not necessarily indicative of the results to be expected for the entire year or any future periods.
Use Of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes to the financial statements. Our estimates include, but are not limited to, the valuation of inventory, revenue valuation, the valuation of a financing derivative and long-term notes, the valuation and recognition of share-based compensation, the delivery period for collaboration agreements, the useful lives assigned to long-lived assets, and the computation provisions for income taxes. Actual results could differ materially from these estimates .
Fair Value Of Financial Instruments	Fair Value of Financial Instruments Assets and liabilities measured at fair value on a recurring basis The following table sets forth the fair value of our financial assets and liabilities measured on a recurring basis as of March 31, 2016 and December 31, 2015, respectively:       (in thousands) March 31, 2016 December 31, 2015  Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total  Assets  Cash and cash equivalents:  Cash and money market funds $ 12,031 $ — $ — $ 12,031 $ 22,034 $ — $ — $ 22,034  Commercial paper — 8,049 — 8,049 — 8,595 — 8,595  US government & agency securities — — — — — 3,000 — 3,000  Total cash and cash equivalents 12,031 8,049 — 20,080 22,034 11,595 — 33,629  Investments:  Commercial paper — 22,232 — 22,232 — 15,903 — 15,903  Corporate debt securities — 6,838 — 6,838 — 1,265 — 1,265  US government & agency securities — 41,084 — 41,084 — 28,136 — 28,136  Asset backed securities — 1,297 — 1,297 — 3,337 — 3,337  Total investments — 71,451 — 71,451 — 48,641 — 48,641  Long-term restricted cash:  Cash 4,500 — — 4,500 4,500 — — 4,500  Total assets measured at fair value $ 16,531 $ 79,500 $ — $ 96,031 $ 26,534 $ 60,236 $ — $ 86,770   Liabilities  Financing derivative $ — $ — $ 551 $ 551 $ — $ — $ 600 $ 600  Total liabilities measured at fair value $ — $ — $ 551 $ 551 $ — $ — $ 600 $ 600  We classify our cash deposits and money market funds within Level 1 of the fair value hierarchy because they are valued using bank balances or quoted market prices. We classify our investments as Level 2 instruments based on market pricing and other observable inputs. We did not classify any of our investments within Level 3 of the fair value hierarchy. During the three-month periods ended March 31, 2016 and 2015, there were no impairments of our investments. The estimated fair value of the Financing Derivative liability (as defined in Note 6. Notes Payable) was determined using Level 3 inputs, or significant unobservable inputs. Changes to the estimated fair value of the Financing Derivative are recorded in “Other income (expense), net” in the condensed consolidated statements of operations and comprehensive loss. The following table provides the changes in the estimated fair value of the Financi ng Derivative during the three-month period ended March 31, 2016 (in thousands):     Financing Derivative Amount  Balance as of December 31, 2015 $ 600  Gain on change in estimated fair value (49)  Balance as of March 31, 2016 $ 551  During the three-month period ended March 31, 2016 there were no transfers between Level 1, Level 2, or Level 3 assets or liabilities reported at fair value on a recurring basis and the valuation techniques used did not change compared to our established practice. Financial assets and liabilities not measured at fair value on a recurring basis The carrying amount of our accounts receivable, prepaid expenses, other current assets, accounts payable, accrued expenses and other liabilities, current, approximate fair value due to their short maturities. The carrying value of our other liabilities, non-current, approximates fair value due to the time to maturity and prevailing market rates. We determined the estimated fair value of the Notes (as defined in Note 6. Notes Payable) using Level 3 inputs, or significant unobservable inputs. The estimated fair value of the Notes was determined by comparing the difference between the estimated fair value of the Notes with and without the Financing Derivative by calculating the respective present values from future cash flows using a weighted average market yield of 13.3% and 13.5% at March 31, 2016 and December 31, 2015, respectively.  The estimated fair value and carrying value of the Notes are as follows (in thousands):      March 31, 2016 December 31, 2015  Fair Value Carrying Value Fair Value Carrying Value  Notes payable $ 18,278 $ 15,216 $ 18,037 $ 14,948 
Net Loss Per Share	Net Loss per Share The following outstanding common stock options and warrants to purchase common stock were excluded from the computation of diluted net loss per share for the periods presented because including them would have had an anti-dilutive effect:     Three Months Ended March 31,  (in thousands) 2016 2015  Options outstanding 22,542 18,796  Warrants to purchase common stock 1,682 5,500 
Recent Accounting Pronouncements	Recent Accounting Pronouncements  Recently Adopted Accounting Standards In July 2015, the Financial Accounting Standards Board (“FASB”) FASB issued Accounting Standards Update (“ASU’) No. 2015-11, Simplifying the Measurement of Inventory , which simplifies the subsequent measurement of inventory by replacing today’s lower of cost or market test with a lower of cost and net realizable value test. The guidance applies only to inventories for which cost is determined by methods other than last-in first-out (LIFO) and the retail inventory method (RIM). Entities that use LIFO or RIM will continue to use existing impairment models (e.g., entities using LIFO would apply the lower of cost or market test). ASU 2015-11 is effective for annual report periods beginning after December 15, 2016 and is effective for us in the first quarter of 2017. Early adoption is permitted as of the beginning of an interim or annual reporting period. The new guidance must be applied prospectively after the date of adoption. We have elected to early adopt ASU 2015-11 effective for the three-month period ended March 31, 2016, as permitted by the standard. The early adoption of this update did not have a material impact on our condensed consolidated financial statements.  Recently Issued Accounting Standards In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which amends the current stock compensation guidance. The amendments simplify the accounting for the taxes related to stock based compensation, including adjustments to how excess tax benefits and a company's payments for tax withholdings should be classified. The standard is effective for fiscal periods beginning after December 15, 2016, with early adoption permitted. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases. The guidance in ASU 2016-02 supersedes the lease recognition requirements in ASC Topic 840, Leases. ASU 2016-02 requires an entity to recognize assets and liabilities arising from a lease for both financing and operating leases, along with additional qualitative and quantitative disclosures. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either the retrospective or the cumulative effect transition method. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date , which deferred the effective date of the new revenue standard for periods beginning after December 15, 2016 to December 15, 2017, with early adoption permitted but not earlier than the original effective date. Accordingly, the updated standard is effective for us in the first quarter of 2018. We are currently evaluating the new guidance to determine the impact it may have to our condensed consolidated financial statements.

Summary Of Significant Accoun15

Summary Of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2016
Summary Of Significant Accounting Policies [Abstract]
Summary Of Assets And Liabilities Measured At Fair Value Classified Based On Level Of Input	   (in thousands) March 31, 2016 December 31, 2015  Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total  Assets  Cash and cash equivalents:  Cash and money market funds $ 12,031 $ — $ — $ 12,031 $ 22,034 $ — $ — $ 22,034  Commercial paper — 8,049 — 8,049 — 8,595 — 8,595  US government & agency securities — — — — — 3,000 — 3,000  Total cash and cash equivalents 12,031 8,049 — 20,080 22,034 11,595 — 33,629  Investments:  Commercial paper — 22,232 — 22,232 — 15,903 — 15,903  Corporate debt securities — 6,838 — 6,838 — 1,265 — 1,265  US government & agency securities — 41,084 — 41,084 — 28,136 — 28,136  Asset backed securities — 1,297 — 1,297 — 3,337 — 3,337  Total investments — 71,451 — 71,451 — 48,641 — 48,641  Long-term restricted cash:  Cash 4,500 — — 4,500 4,500 — — 4,500  Total assets measured at fair value $ 16,531 $ 79,500 $ — $ 96,031 $ 26,534 $ 60,236 $ — $ 86,770   Liabilities  Financing derivative $ — $ — $ 551 $ 551 $ — $ — $ 600 $ 600  Total liabilities measured at fair value $ — $ — $ 551 $ 551 $ — $ — $ 600 $ 600 
Changes In Fair Value Of Financial Derivative	   Financing Derivative Amount  Balance as of December 31, 2015 $ 600  Gain on change in estimated fair value (49)  Balance as of March 31, 2016 $ 551 
Estimated Fair Value And Carrying Value of Notes	   March 31, 2016 December 31, 2015  Fair Value Carrying Value Fair Value Carrying Value  Notes payable $ 18,278 $ 15,216 $ 18,037 $ 14,948 
Anti-Dilutive Shares Excluded From Computation Of Diluted Net Loss Per Share	   Three Months Ended March 31,  (in thousands) 2016 2015  Options outstanding 22,542 18,796  Warrants to purchase common stock 1,682 5,500 

Cash And Cash Equivalents And I

Cash And Cash Equivalents And Investments (Tables)	3 Months Ended
	Mar. 31, 2016
Cash, Cash Equivalents And Investments [Abstract]
Summary Of Cash, Cash Equivalents And Investments	   March 31, 2016  Gross Gross  Amortized unrealized unrealized Fair  Cost gains losses Value  Cash and cash equivalents:  Cash and money market funds $ 12,031 $ — $ — $ 12,031  Commercial paper 8,049 — — 8,049  Total cash and cash equivalents 20,080 — — 20,080  Investments:  Commercial paper 22,227 7 (2) 22,232  Corporate debt securities 6,836 3 (1) 6,838  Asset backed securities 1,297 — — 1,297  US government & agency securities 41,050 34 — 41,084  Total investments 71,410 44 (3) 71,451  Total cash, cash equivalents and investments $ 91,490 $ 44 $ (3) $ 91,531   Long-term restricted cash:  Cash 4,500 — — 4,500  Total long-term restricted cash $ 4,500 $ — $ — $ 4,500    December 31, 2015  Gross Gross  Amortized unrealized unrealized Fair  Cost gains losses Value  Cash and cash equivalents:  Cash and money market funds $ 22,034 $ — $ — $ 22,034  Commercial paper 8,595 — — 8,595  US government & agency securities 3,000 — — 3,000  Total cash and cash equivalents 33,629 — — 33,629  Investments:  Commercial paper 15,903 2 (2) 15,903  Corporate debt securities 1,266 — (1) 1,265  Asset backed securities 3,337 — — 3,337  US government & agency securities 28,142 4 (10) 28,136  Total investments 48,648 6 (13) 48,641  Total cash, cash equivalents and investments $ 82,277 $ 6 $ (13) $ 82,270   Long-term restricted cash:  Cash 4,500 — — 4,500  Total long-term restricted cash $ 4,500 $ — $ — $ 4,500 
Summary Of Contractual Maturities Of Cash Equivalents And Available-For-Sale Investments	   (in thousands) Fair Value  Due in one year or less $ 79,500 

Inventory (Tables)

Inventory (Tables)	3 Months Ended
	Mar. 31, 2016
Inventory [Abstract]
Components Of Inventory	   March 31, December 31,  (in thousands) 2016 2015  Purchased materials $ 4,633 $ 4,041  Work in process 4,799 3,576  Finished goods 2,730 3,338  Inventory $ 12,162 $ 10,955 

Stockholders' Equity And Shar18

Stockholders' Equity And Share-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2016
Stockholders' Equity And Share-Based Compensation [Abstract]
Summary Of Stock Option Activity	   Stock Options Outstanding  Weighted  Shares available Number average  for grant of shares Exercise price exercise price  Balances, December 31, 2015 5,814 19,468 $ 0.70 – 16.00 $ 5.69  Additional shares reserved 4,799  Options granted (3,388) 3,388 7.87 – 12.85 8.69  Options exercised — (245) 0.70 – 7.59 3.11  Options canceled 69 (69) 1.16 – 12.85 5.52  Balances, March 31, 2016 7,294 22,542 $ 0.70 – 16.00 $ 6.17 
Schedule Of Stock-Based Compensation Expense	   Three-Month Periods Ended March 31,  2016 2015  Cost of revenue $ 499 $ 298  Research and development 1,910 1,255  Sales, general and administrative 2,172 1,702  Total stock-based compensation expense $ 4,581 $ 3,255 
Schedule Of Fair Value Of Employee Stock Options	   Three-Month Periods Ended March 31,  Stock Option 2016 2015  Expected term in years 6.1 6.1  Expected volatility 70% 70%  Risk-free interest rate 1.5% 1.6%  Dividend yield — —  
Schedule Of Fair Value Of Employee Stock Purchase Plan	   Three-Month Periods Ended March 31,  ESPP 2016 2015  Expected term in years 0.5 - 2.0 0.5 - 2.0  Expected volatility 70% 70%  Risk-free interest rate 0.5% -0.9% 0.1% -0.6%  Dividend yield — — 

Summary Of Significant Accoun19

Summary Of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Summary Of Significant Accounting Policies [Abstract]
Impairment charges on investments	$ 0	$ 0
Fair value assets liabilities transfer between levels	$ 0
Future cash flows weighted average market yield	13.30%		13.50%

Summary Of Significant Accoun20

Summary Of Significant Accounting Policies (Summary Of Assets And Liabilities Measured At Fair Value Classified Based On Level Of Input) (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Liabilities
Total liabilities measured at fair value	$ 551	$ 600
Financing Derivative [Member]
Liabilities
Total liabilities measured at fair value	551	600
Cash and cash equivalents [Member]
Assets
Total cash and cash equivalents	20,080	33,629
Cash and cash equivalents [Member] | Cash and money market funds [Member]
Assets
Total cash and cash equivalents	12,031	22,034
Cash and cash equivalents [Member] | Commercial paper [Member]
Assets
Total cash and cash equivalents	8,049	8,595
Cash and cash equivalents [Member] | U.S. government and agency securities [Member]
Assets
Total cash and cash equivalents		3,000
Investments [Member]
Assets
Total investments	71,451	48,641
Investments [Member] | Commercial paper [Member]
Assets
Total investments	22,232	15,903
Investments [Member] | Corporate debt securities [Member]
Assets
Total investments	6,838	1,265
Investments [Member] | U.S. government and agency securities [Member]
Assets
Total investments	41,084	28,136
Investments [Member] | Asset backed securities [Member]
Assets
Total investments	1,297	3,337
Long-term restricted cash [Member]
Assets
Total assets measured at fair value	96,031	86,770
Long-term restricted cash [Member] | Cash [Member]
Assets
Long-term restricted cash	4,500	4,500
Level 1 [Member] | Cash and cash equivalents [Member]
Assets
Total cash and cash equivalents	12,031	22,034
Level 1 [Member] | Cash and cash equivalents [Member] | Cash and money market funds [Member]
Assets
Total cash and cash equivalents	12,031	22,034
Level 1 [Member] | Long-term restricted cash [Member]
Assets
Total assets measured at fair value	16,531	26,534
Level 1 [Member] | Long-term restricted cash [Member] | Cash [Member]
Assets
Long-term restricted cash	4,500	4,500
Level 2 [Member] | Cash and cash equivalents [Member]
Assets
Total cash and cash equivalents	8,049	11,595
Level 2 [Member] | Cash and cash equivalents [Member] | Commercial paper [Member]
Assets
Total cash and cash equivalents	8,049	8,595
Level 2 [Member] | Cash and cash equivalents [Member] | U.S. government and agency securities [Member]
Assets
Total cash and cash equivalents		3,000
Level 2 [Member] | Investments [Member]
Assets
Total investments	71,451	48,641
Level 2 [Member] | Investments [Member] | Commercial paper [Member]
Assets
Total investments	22,232	15,903
Level 2 [Member] | Investments [Member] | Corporate debt securities [Member]
Assets
Total investments	6,838	1,265
Level 2 [Member] | Investments [Member] | U.S. government and agency securities [Member]
Assets
Total investments	41,084	28,136
Level 2 [Member] | Investments [Member] | Asset backed securities [Member]
Assets
Total investments	1,297	3,337
Level 2 [Member] | Long-term restricted cash [Member]
Assets
Total assets measured at fair value	$ 79,500	$ 60,236
Level 3 [Member]
Assets
Total assets measured at fair value
Liabilities
Total liabilities measured at fair value	$ 551	$ 600
Level 3 [Member] | Financing Derivative [Member]
Liabilities
Total liabilities measured at fair value	$ 551	$ 600
Level 3 [Member] | Cash and cash equivalents [Member]
Assets
Total cash and cash equivalents
Level 3 [Member] | Cash and cash equivalents [Member] | Cash and money market funds [Member]
Assets
Total cash and cash equivalents
Level 3 [Member] | Cash and cash equivalents [Member] | Commercial paper [Member]
Assets
Total cash and cash equivalents
Level 3 [Member] | Cash and cash equivalents [Member] | U.S. government and agency securities [Member]
Assets
Total cash and cash equivalents
Level 3 [Member] | Investments [Member]
Assets
Total investments
Level 3 [Member] | Investments [Member] | Commercial paper [Member]
Assets
Total investments
Level 3 [Member] | Investments [Member] | Corporate debt securities [Member]
Assets
Total investments
Level 3 [Member] | Investments [Member] | U.S. government and agency securities [Member]
Assets
Total investments
Level 3 [Member] | Investments [Member] | Asset backed securities [Member]
Assets
Total investments
Level 3 [Member] | Long-term restricted cash [Member]
Assets
Total assets measured at fair value
Level 3 [Member] | Long-term restricted cash [Member] | Cash [Member]
Assets
Long-term restricted cash

Summary Of Significant Accoun21

Summary Of Significant Accounting Policies (Changes In Fair Value Of Financial Derivative) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)
Summary Of Significant Accounting Policies [Abstract]
Balance as of December 31	$ 600
Gain on change in estimated fair value	(49)
Balance as of March 31	$ 551

Summary Of Significant Accoun22

Summary Of Significant Accounting Policies (Estimated Fair Value And Carrying Value Of Notes) (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Estimated Fair Value [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term notes payable	$ 18,278	$ 18,037
Carrying Value [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term notes payable	$ 15,216	$ 14,948

Summary Of Significant Accoun23

Summary Of Significant Accounting Policies (Anti-dilutive Excluded From Computation Of Diluted Net Loss Per Share) (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stock excluded from the computation of diluted net loss per share	22,542	18,796
Warrants to purchase common stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stock excluded from the computation of diluted net loss per share	1,682	5,500

Contractual Revenue (Details)

Contractual Revenue (Details) - Roche Agreement [Member] - USD ($) $ in Millions	1 Months Ended	3 Months Ended					12 Months Ended	15 Months Ended
	Sep. 30, 2013	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2015	Dec. 31, 2014
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Non-refundable upfront payment	$ 35
Amortization								$ 1.7
Additional contractual revenue being recognized in the period		$ 3.6	$ 3.6	$ 3.6	$ 3.6	$ 3.6
Maximum potential for additional payments to be recognized upon the achievement of certain development milestones	$ 40
Remaining potential for additional payments to be recognized upon the achievement of certain development milestones								$ 10
Second Milestone [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Deferred revenue, revenue recognized					$ 10
Final Milestone [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Deferred revenue, revenue recognized							$ 20

Cash, Cash Equivalents And In25

Cash, Cash Equivalents And Investments (Summary Of Cash, Cash Equivalents And Investments) (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 91,490	$ 82,277
Gross unrealized gains	44	6
Gross unrealized losses	(3)	(13)
Fair Value	91,531	82,270
Cash and cash equivalents [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	20,080	33,629
Fair Value	20,080	33,629
Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	71,410	48,648
Gross unrealized gains	44	6
Gross unrealized losses	(3)	(13)
Fair Value	71,451	48,641
Long-term restricted cash [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	4,500	4,500
Fair Value	4,500	4,500
Cash and money market funds [Member] | Cash and cash equivalents [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	12,031	22,034
Fair Value	12,031	22,034
Commercial paper [Member] | Cash and cash equivalents [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	8,049	8,595
Fair Value	8,049	8,595
Commercial paper [Member] | Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	22,227	15,903
Gross unrealized gains	7	2
Gross unrealized losses	(2)	(2)
Fair Value	22,232	15,903
Corporate debt securities [Member] | Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	6,836	1,266
Gross unrealized gains	3
Gross unrealized losses	(1)	(1)
Fair Value	6,838	1,265
Asset backed securities [Member] | Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	1,297	3,337
Fair Value	1,297	3,337
U.S. government and agency securities [Member] | Cash and cash equivalents [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		3,000
Fair Value		3,000
U.S. government and agency securities [Member] | Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	41,050	28,142
Gross unrealized gains	34	4
Gross unrealized losses		(10)
Fair Value	41,084	28,136
Cash [Member] | Long-term restricted cash [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	4,500	4,500
Fair Value	$ 4,500	$ 4,500

Cash, Cash Equivalents And In26

Cash, Cash Equivalents And Investments (Summary Of Contractual Maturities Of Cash Equivalents And Available-For-Sale Investments) (Details) $ in Thousands	Mar. 31, 2016USD ($)
Cash, Cash Equivalents And Investments [Abstract]
Due in one year or less	$ 79,500

Inventory (Components Of Invent

Inventory (Components Of Inventory) (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Inventory [Abstract]
Purchased materials	$ 4,633	$ 4,041
Work in process	4,799	3,576
Finished goods	2,730	3,338
Inventory	$ 12,162	$ 10,955

Notes Payable (Narrative) (Deta

Notes Payable (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended
	Feb. 28, 2013	Mar. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Number of shares of common stock called by issuance of warrants	5,500,000	3,818,000
Aggregate exercise price of common stock called by issuance of warrants	$ 2.63		$ 2.63
Class of Warrant or Right, Outstanding		1,682,000	5,500,000
Cash and cash equivalent minimum amount quarterly required	$ 2,000
Future cash flows weighted average market yield		13.30%	13.50%
Fair value of the financing derivative		$ 551	$ 600
Fair value of the warrants	6,400
Proceeds from issuance of debt	$ 20,500
Notes [Member]
Debt Instrument [Line Items]
Facility agreement period	7 years
Percentage of net proceeds from out side financing or equity component		25.00%
Percentage of principal amount repaid		100.00%
Fair value of the financing derivative		$ 600	600
Fair value of the notes	$ 14,100
Carrying value of the notes	12,800
Original issue discount	7,700
Debt discount that has yet to be amortized		$ 5,200	$ 5,400
Maturity date		Feb. 1, 2020
Deerfield promissory notes [Member]
Debt Instrument [Line Items]
Principal amount of notes	$ 20,500
Debt instrument, stated interest rate	8.75%

Leases (Narrative) (Details)

Leases (Narrative) (Details)	Jul. 23, 2015USD ($)item	Jul. 22, 2015USD ($)	Feb. 29, 2016USD ($)	Sep. 30, 2015USD ($)	Mar. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2009USD ($)
Operating Leased Assets [Line Items]
Other liabilities, non-current					$ 1,462,000	$ 1,386,000
Expected security deposit		$ 4,500,000
Prepaid expenses and other current assets					7,351,000	12,071,000
Other long-term assets					7,529,000	7,518,000
Lease Amendment Agreement [Member]
Operating Leased Assets [Line Items]
Number of eligible payments from existing landlord | item	4
Eligible payments from existing landlord	$ 5,000,000
Gain on lease amendments				$ 23,000,000
Aggregate Landlord payments receivable					20,000,000
Landlord periodic payment received			$ 5,000,000	$ 5,000,000
Prepaid expenses and other current assets					5,000,000
Other long-term assets					5,000,000
O’Brien Lease Agreement [Member]
Operating Leased Assets [Line Items]
Tenant improvement allowance							$ 1,800,000
Future minimum rent payments					0
Other liabilities, non-current					1,500,000	$ 1,400,000
Lease term		132 months
Rent expense first twelve months		$ 540,000
Rent expense last twelve months		711,000
Expected prepaid rent		2,160,000
Expected improvement allowance		12,600,000
Expected rent payments		80,000,000
Expected operating costs		$ 24,000,000
Other assets					$ 10,000,000
Leasehold Improvements [Member] | O’Brien Lease Agreement [Member]
Operating Leased Assets [Line Items]
Property, plant and equipment							3,000,000
Manufacturing Facility [Member] | O’Brien Lease Agreement [Member]
Operating Leased Assets [Line Items]
Property, plant and equipment							$ 1,200,000

Stockholders' Equity And Shar30

Stockholders' Equity And Share-Based Compensation (Narrative) (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)item$ / sharesshares	Mar. 31, 2015USD ($)shares	Dec. 31, 2015$ / sharesshares	Feb. 28, 2013$ / sharesshares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Proceeds from issuance of common stock from equity plans | $	$ 3,423	$ 2,434
Holders may elect to receive net proceeds from financing activities, percentage	25.00%
Number of shares of common stock called by issuance of warrants	3,818,000			5,500,000
Aggregate exercise price of common stock called by issuance of warrants | $ / shares			$ 2.63	$ 2.63
Shares of common stock issued as a result of warrant exercise	3,000,000
Number of shares of common stock called by issuance of warrants, outstanding	1,682,000		5,500,000
Number of equity compensation plans | item	3
Stock Options [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares issued	668,566	532,217
Common stock reserved for issuance	1,328,736
At the Market Offering [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares issued	3,100,000
Average common stock price per share | $ / shares	$ 8.80
Proceeds from issuance of common stock from equity plans | $	$ 26,500
Common stock available for future sales | $	$ 2,600

Stockholders' Equity And Shar31

Stockholders' Equity And Share-Based Compensation (Summary Of Stock Option Activity) (Details) - Stock Options [Member] - $ / shares shares in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Additional shares reserved, Shares available for grant	4,799
$0.70 – 16.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Balances, December 31, 2015, Shares available for grant	5,814
Balances, March 31, 2016, Shares available for grant		5,814
Balances, December 31, 2015, Number of shares	19,468
Balances, March 31, 2016, Number of shares		19,468
Exercise price, lower range		$ 0.70
Exercise price, upper range		16
Balances, December 31, 2015, Weighted average exercise price per share	$ 5.69
Balances, March 31, 2016, Weighted average exercise price per share		$ 5.69
$7.87 – 12.85 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options granted, Shares available for grant	(3,388)
Options granted, Number of shares	3,388
Exercise price, lower range	$ 7.87
Exercise price, upper range	12.85
Options granted, Weighted average exercise price per share	$ 8.69
$0.70 – 7.59 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options exercised, Shares available for grant
Options exercised, Number of shares	(245)
Exercise price, lower range	$ 0.70
Exercise price, upper range	7.59
Options exercised, Weighted average exercise price per share	$ 3.11
$1.16 – 12.85 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options canceled, Shares available for grant	69
Options canceled, Number of shares	(69)
Exercise price, lower range	$ 1.16
Exercise price, upper range	12.85
Options canceled, Weighted average exercise price per share	$ 5.52
$0.70 – 16.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Balances, March 31, 2016, Shares available for grant	7,294
Balances, March 31, 2016, Number of shares	22,542
Exercise price, lower range	$ 0.70
Exercise price, upper range	16
Balances, March 31, 2016, Weighted average exercise price per share	$ 6.17

Stockholders' Equity And Shar32

Stockholders' Equity And Share-Based Compensation (Schedule Of Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	$ 4,581	$ 3,255
Cost of revenue [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	499	298
Research and development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	1,910	1,255
Sales, general and administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	$ 2,172	$ 1,702

Stockholders' Equity And Shar33

Stockholders' Equity And Share-Based Compensation (Schedule Of Fair Value Of Employee Stock Options And Employee Stock Purchase Plan) (Details)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Dividend yield
Stock Options [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term	6 years 1 month 6 days	6 years 1 month 6 days
Expected volatility	70.00%	70.00%
Risk-free interest rate	1.50%	1.60%
Risk-free interest rate, minimum	0.50%	0.10%
Risk-free interest rate, maximum	0.90%	0.60%
Dividend yield
ESPP [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected volatility	70.00%	70.00%
Dividend yield
ESPP [Member] | Minimum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term	6 months	6 months
ESPP [Member] | Maximum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term	2 years	2 years