Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Feb. 28, 2014 | Jun. 30, 2013 |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Entity Registrant Name | 'AtriCure, Inc. | ' | ' |
Entity Central Index Key | '0001323885 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 27,267,375 | ' |
Entity Public Float | ' | ' | $178.30 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $14,892 | $7,753 |
Short-term investments | 11,319 | 4,247 |
Accounts receivable, less allowance for doubtful accounts of $94 and $49, respectively | 13,652 | 9,948 |
Inventories | 10,214 | 5,718 |
Other current assets | 2,410 | 873 |
Total current assets | 52,487 | 28,539 |
Property and equipment, net | 5,643 | 3,430 |
Long-term investments | 7,914 | 0 |
Intangible assets, net | 10,299 | 32 |
Goodwill | 35,386 | ' |
Other assets | 218 | 430 |
Total Assets | 111,947 | 32,431 |
Current liabilities: | ' | ' |
Accounts payable | 8,605 | 5,103 |
Accrued liabilities | 16,070 | 5,073 |
Current maturities of debt and capital leases | 2,038 | 2,029 |
Total current liabilities | 26,713 | 12,205 |
Long-term debt and capital leases | 4,412 | 6,407 |
Other liabilities | 8,218 | 1,319 |
Total Liabilities | 39,343 | 19,931 |
Commitments and contingencies (Note 11) | ' | ' |
Stockholders' Equity: | ' | ' |
Common stock, $.001 par value, 90,000 shares authorized and 23,248 and 16,896 issued and outstanding, respectively | 23 | 17 |
Additional paid-in capital | 194,933 | 123,157 |
Accumulated other comprehensive (loss) income | -139 | 77 |
Accumulated deficit | -122,213 | -110,751 |
Total Stockholders' Equity | 72,604 | 12,500 |
Total Liabilities and Stockholders' Equity | $111,947 | $32,431 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Per Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Accounts receivable, allowance for doubtful accounts | $94 | $49 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 90,000 | 90,000 |
Common stock, shares issued | 23,248 | 16,896 |
Common stock, shares outstanding | 23,248 | 16,896 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Statement [Abstract] | ' | ' | ' |
Revenue | $81,889 | $70,247 | $64,402 |
Cost of revenue | 22,326 | 20,233 | 17,406 |
Gross profit | 59,563 | 50,014 | 46,996 |
Operating expenses: | ' | ' | ' |
Research and development expenses | 13,440 | 12,147 | 11,857 |
Selling, general and administrative expenses | 57,014 | 45,065 | 39,870 |
Total operating expenses | 70,454 | 57,212 | 51,727 |
Loss from operations | 10,891 | -7,198 | -4,731 |
Other income (expense): | ' | ' | ' |
Interest expense | -566 | -802 | -814 |
Interest income | 16 | 11 | 16 |
Other | -3 | 505 | 104 |
Loss before income tax expense | -11,444 | -7,484 | -5,425 |
Income tax expense | 18 | 50 | 31 |
Net loss | -11,462 | -7,534 | -5,456 |
Basic and diluted net loss per share | ($0.56) | ($0.47) | ($0.35) |
Weighted average shares outstanding - basic and diluted | 20,431 | 16,190 | 15,672 |
Comprehensive loss: | ' | ' | ' |
Unrealized (losses) gains on investments | -7 | -1 | 2 |
Foreign currency translation adjustment | -209 | 115 | -119 |
Other comprehensive (loss) income | -216 | 114 | -117 |
Net loss | -11,462 | -7,534 | -5,456 |
Comprehensive loss | ($11,678) | ($7,420) | ($5,573) |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
In Thousands | |||||
Beginning Balance at Dec. 31, 2010 | $16,736 | $15 | $114,402 | ($97,761) | $80 |
Beginning Balance, Shares at Dec. 31, 2010 | ' | 15,664 | ' | ' | ' |
Issuance of common stock under equity incentive plans | 861 | 1 | 860 | ' | ' |
Issuance of common stock under equity incentive plans, Shares | ' | 631 | ' | ' | ' |
Issuance of common stock under employee stock purchase plan | 669 | 0 | 669 | ' | ' |
Issuance of common stock under employee stock purchase plan, Shares | ' | 74 | ' | ' | ' |
Non-employee stock option fair market value adjustment | 8 | ' | 8 | ' | ' |
Share-based employee compensation expense | 2,931 | ' | 2,931 | ' | ' |
Reclassification of non-employee option liability | -17 | ' | -17 | ' | ' |
Other comprehensive income (Loss) | -117 | ' | ' | ' | -117 |
Net loss | -5,456 | ' | ' | -5,456 | ' |
Ending Balance at Dec. 31, 2011 | 15,615 | 16 | 118,853 | -103,217 | -37 |
Ending Balance, Shares at Dec. 31, 2011 | ' | 16,369 | ' | ' | ' |
Issuance of common stock under equity incentive plans | 259 | 1 | 258 | ' | ' |
Issuance of common stock under equity incentive plans, Shares | ' | 438 | ' | ' | ' |
Issuance of common stock under employee stock purchase plan | 627 | 0 | 627 | ' | ' |
Issuance of common stock under employee stock purchase plan, Shares | ' | 89 | ' | ' | ' |
Share-based employee compensation expense | 3,468 | ' | 3,468 | ' | ' |
Reclassification of non-employee option liability | -49 | ' | -49 | ' | ' |
Other comprehensive income (Loss) | 114 | ' | ' | ' | 114 |
Net loss | -7,534 | ' | ' | -7,534 | ' |
Ending Balance at Dec. 31, 2012 | 12,500 | 17 | 123,157 | -110,751 | 77 |
Ending Balance, Shares at Dec. 31, 2012 | ' | 16,896 | ' | ' | ' |
Issuance of common stock through public offering | 26,872 | 4 | 26,868 | ' | ' |
Issuance of common stock through public offering, Shares | ' | 3,996 | ' | ' | ' |
Issuance of common stock for Estech acquisition | 39,720 | 2 | 39,718 | ' | ' |
Issuance of common stock for Estech acquisition, Shares | ' | 2,126 | ' | ' | ' |
Issuance of common stock under equity incentive plans | 1,320 | ' | 1,320 | ' | ' |
Issuance of common stock under equity incentive plans, Shares | ' | 119 | ' | ' | ' |
Issuance of common stock under employee stock purchase plan | 790 | ' | 790 | ' | ' |
Issuance of common stock under employee stock purchase plan, Shares | ' | 111 | ' | ' | ' |
Share-based employee compensation expense | 3,080 | ' | 3,080 | ' | ' |
Other comprehensive income (Loss) | -216 | ' | ' | ' | -216 |
Net loss | -11,462 | ' | ' | -11,462 | ' |
Ending Balance at Dec. 31, 2013 | $72,604 | $23 | $194,933 | ($122,213) | ($139) |
Ending Balance, Shares at Dec. 31, 2013 | ' | 23,248 | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net loss | ($11,462) | ($7,534) | ($5,456) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ' | ' | ' |
Share-based compensation expense | 3,080 | 3,468 | 2,939 |
Depreciation | 2,008 | 1,886 | 1,878 |
Amortization of deferred financing costs | 115 | 100 | 97 |
Write-off of deferred financing costs and discount on long-term debt | ' | ' | 153 |
Amortization of discount on long-term debt | ' | ' | 22 |
Amortization of intangible assets | 12 | 13 | 44 |
Amortization/accretion on investments | 49 | 12 | 61 |
(Gain) loss on disposal of equipment | -6 | 40 | 56 |
Gain on sale of intellectual property | ' | ' | -300 |
Change in allowance for doubtful accounts | -14 | 1 | 28 |
Changes in assets and liabilities: | ' | ' | ' |
Accounts receivable | -1,248 | -417 | -199 |
Inventories | -2,288 | 865 | -923 |
Other current assets | -1,257 | 57 | -17 |
Accounts payable | 1,445 | -132 | 788 |
Accrued liabilities | 4,114 | -97 | -976 |
Other non-current assets and non-current liabilities | 230 | -198 | -181 |
Net cash used in operating activities | -5,222 | -1,936 | -1,986 |
Cash flows from investing activities: | ' | ' | ' |
Purchases of equipment | -2,864 | -2,985 | -1,522 |
Proceeds from sale of equipment | 48 | 24 | 89 |
Purchases of available-for-sale securities | -21,243 | -9,236 | -12,649 |
Maturities of available-for-sale securities | 6,200 | 9,400 | 16,506 |
Cash acquired through business combination | 3,708 | ' | ' |
Proceeds from sale of intellectual property | ' | ' | 300 |
Net cash (used in) provided by investing activities | -14,151 | -2,797 | 2,724 |
Cash flows from financing activities: | ' | ' | ' |
Proceeds from sale of stock, net of offering costs of $212 | 26,872 | ' | ' |
Payments on debt and capital leases | -2,055 | -8,096 | -4,046 |
Proceeds from borrowings of debt | ' | 10,000 | 7,500 |
Payment of debt fees and premium on retirement of debt | -99 | -127 | -81 |
Proceeds from issuance of common stock under employee stock purchase plan | 790 | 627 | 669 |
Proceeds from stock option exercises | 1,718 | 659 | 1,588 |
Shares repurchased for payment of taxes on stock awards | -398 | -401 | -783 |
Net cash provided by financing activities | 26,828 | 2,662 | 4,847 |
Effect of exchange rate changes on cash | -316 | 65 | -57 |
Net (decrease) increase in cash and cash equivalents | 7,139 | -2,006 | 5,528 |
Cash and cash equivalents - beginning of period | 7,753 | 9,759 | 4,231 |
Cash and cash equivalents - end of period | 14,892 | 7,753 | 9,759 |
Supplemental cash flow information: | ' | ' | ' |
Cash paid for interest | 473 | 607 | 405 |
Cash paid for income taxes | 30 | 14 | 30 |
Noncash investing and financing activities: | ' | ' | ' |
Accrued purchases of property and equipment | 282 | 10 | 44 |
Assets acquired through capital lease | 68 | 65 | 60 |
Capital lease asset early termination | 24 | 13 | ' |
Stock issuance for Estech acquisition | 39,720 | ' | ' |
Contingent consideration for acquisition of Estech | $8,032 | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS1
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Statement Of Cash Flows [Abstract] | ' |
Offering cost for sale of stock | $212 |
DESCRIPTION_OF_BUSINESS_AND_SU
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||||||||
1. DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||
Nature of the Business—AtriCure, Inc. (the “Company” or “AtriCure”) was incorporated in the State of Delaware on October 31, 2000. The Company is a leading atrial fibrillation (“Afib”) solutions partner providing innovative products, professional education and support for clinical science to reduce the economic and social burden of Afib. The Company sells its products to hospitals globally through a direct sales force and distributors. | |||||||||||||
Principles of Consolidation—The Consolidated Financial Statements include the accounts of the Company, AtriCure, LLC, the Company’s wholly-owned subsidiary organized in the State of Delaware, Endoscopic Technologies, LLC (“Estech”), the Company’s wholly-owned subsidiary organized in the State of Delaware and AtriCure Europe B.V. (“AtriCure Europe”), the Company’s wholly-owned subsidiary incorporated in the Netherlands. All intercompany accounts and transactions have been eliminated in consolidation. | |||||||||||||
Cash and Cash Equivalents—The Company considers highly liquid investments with maturities of three months or less at the date of acquisition as cash equivalents in the accompanying Consolidated Financial Statements. | |||||||||||||
Investments—The Company places its investments primarily in U.S. Government agencies and securities, corporate bonds and commercial paper. The Company classifies all investments as available-for-sale. Investments with maturities of less than one year are classified as short-term investments. Investments are recorded at fair value, with unrealized gains and losses recorded as accumulated other comprehensive income (loss). The Company recognizes gains and losses when these securities are sold using the specific identification method and includes them in interest income or expense in the Consolidated Statements of Operations. | |||||||||||||
Revenue Recognition—The Company accounts for revenue in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 605, “Revenue Recognition” (“ASC 605”). The Company determines the timing of revenue recognition based upon factors such as passage of title, installation, payment terms and ability to return products. The Company recognizes revenue when all of the following criteria are met: (i) there is persuasive evidence that an arrangement exists; (ii) delivery of the products and/or services has occurred; (iii) the selling price is fixed or determinable; and (iv) collectability is reasonably assured. | |||||||||||||
Pursuant to the Company’s standard terms of sale, revenue is recognized when title to the goods and risk of loss transfers to customers and there are no remaining obligations that will affect the customers’ final acceptance of the sale. Generally, the Company’s standard terms of sale define the transfer of title and risk of loss to occur upon shipment to the respective customer. The Company generally does not maintain any post-shipping obligations to the recipients of the products. No installation, calibration or testing of this equipment is performed by the Company subsequent to shipment to the customer in order to render it operational. | |||||||||||||
Product revenue includes shipping and handling revenue of $786, $723 and $664 in 2013, 2012 and 2011, respectively. Cost of freight for shipments made to customers is included in cost of revenue. Sales and other value-added taxes collected from customers and remitted to governmental authorities are excluded from revenue. The Company sells its products primarily through a direct sales force and through AtriCure Europe B.V. Terms of sale are generally consistent for both end-users and distributors except that payment terms are generally net 30 days for end-users and net 60 days for distributors. | |||||||||||||
Sales Returns and Allowances—The Company maintains a provision for sales returns and allowances to account for potential returns of defective or damaged products, products shipped in error and price adjustments. The Company estimates such provision quarterly based primarily on a specific identification basis, in addition to estimating a general reserve. Increases to the provision result in a reduction of revenue. The provision is included in accrued liabilities in the Consolidated Balance Sheets. | |||||||||||||
Allowance for Uncollectible Accounts Receivable—The Company evaluates the collectability of accounts receivable in order to determine the appropriate reserve for doubtful accounts. In determining the amount of the reserve, the Company considers aging of account balances, historical credit losses, customer-specific information and other relevant factors. An increase to the allowance for doubtful accounts results in a corresponding increase in expense. The Company reviews accounts receivable and adjusts the allowance based on current circumstances and charges off uncollectible receivables against the allowance when all attempts to collect the receivable have failed. The Company’s history of write-offs against the allowance has not been significant. | |||||||||||||
Inventories—Inventories are stated at the lower of cost or market using the first-in, first-out cost method (“FIFO”) and consist of raw materials, work in process and finished goods. The Company’s industry is characterized by rapid product development and frequent new product introductions. Uncertain timing of product approvals, variability in product launch strategies and variation in product utilization all impact excess and obsolete inventory. An inventory reserve based on product usage is estimated and recorded quarterly for excess, slow moving and obsolete inventory as well as for inventory with a carrying value in excess of its net realizable value. Write-offs are recorded when a product is destroyed. The Company’s history of write-offs against the reserve has not been significant. | |||||||||||||
Property and Equipment—Property and equipment is stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method of depreciation for financial reporting purposes and applied over the estimated useful lives of the assets. The estimated useful life by major asset category is the following: machinery and equipment is three to seven years, computer and other office equipment is three years, furniture and fixtures is three to seven years and leasehold improvements and equipment leased under a capital lease are the shorter of their useful life or remaining lease term. The Company reassesses useful lives of property and equipment annually, and assets are retired if they are no longer being used. Maintenance and repair costs are expensed as incurred. | |||||||||||||
Included in property and equipment are generators and other capital equipment (such as the Company’s switchbox units and cryosurgical consoles) that are loaned at no cost to direct customers that use the Company’s disposable products. These generators are depreciated over a period of one to three years, which approximates their useful lives, and such depreciation is included in cost of revenue. The estimated useful lives of this equipment are based on anticipated usage by our customers and the timing and impact of expected new technology rollouts by the Company. To the extent the Company experiences changes in the usage of this equipment or introductions of new technologies, the estimated useful lives of this equipment may change in a future period. Depreciation related to these generators was $1,251, $1,081 and $1,294 in 2013, 2012 and 2011, respectively. As of December 31, 2013 and 2012, the net carrying amount of loaned equipment included in net property and equipment in the Consolidated Balance Sheets was $3,173 and $2,197, respectively. | |||||||||||||
Impairment of Long-Lived Assets—The Company reviews property and equipment for impairment using its best estimates based on reasonable and supportable assumptions and projections. | |||||||||||||
Intangible Assets—Intangible assets with determinable useful lives are amortized on a straight-line basis over the estimated periods benefited. | |||||||||||||
Goodwill— Goodwill represents the excess of purchase price over the fair value of the net assets acquired in business combinations. We test goodwill for impairment annually on November 30, or more often if impairment indicators are present. ASC 350, “Intangibles—Goodwill and Other” (“ASC 350”) requires a two-step approach to determine any potential goodwill impairment. The first step (Step 1) requires a comparison of the carrying value of the reporting unit to its fair value. Goodwill is considered potentially impaired if the carrying value of the reporting unit is greater than the estimated fair value. If potential impairment exists based upon completion of Step 1, Step 2 must be completed, which compares the implied fair value of a reporting unit’s goodwill to its carrying value. Step 2 involves an analysis allocating the fair value determined in Step 1 (as if it was the purchase price in a business combination). If the calculated fair value of the goodwill resulting from this allocation is lower than the carrying value of the goodwill of the reporting unit, an impairment loss is recorded. As a result, the value of the assets could be significantly reduced, which would increase operating expenses and reduce net income for the period in which the charge occurs. | |||||||||||||
Other Income— Other income consists primarily of foreign currency transaction gains and losses, grant income and non-employee option gains and losses related to the fair market value change for fully vested options outstanding for consultants which are accounted for as free-standing derivatives. The Company recorded foreign currency transaction gains (losses) of $269, ($83) and $30 for the years ended December 31, 2013, 2012 and 2011, respectively, in connection with settlements of its intercompany balance with AtriCure Europe. | |||||||||||||
The Company periodically is awarded grants to support research and development activities. The Company recognizes grant income when the funds are earned. The Company recorded grant income of $0, $409 and $52 during 2013, 2012 and 2011, respectively. | |||||||||||||
The Company historically issued stock options to non-employee consultants as a form of compensation for services provided to the Company. Because the non-employee options require settlement by the Company’s delivery of registered shares and because the tax withholding provisions in the awards allow the options to be partially net-cash settled, these options, when vested, are no longer eligible for equity classification and are, thus, subsequently accounted for as derivative liabilities under FASB ASC 815, “Derivatives and Hedging” (“ASC 815”) until the awards are ultimately either exercised or forfeited. Accordingly, the vested non-employee options are classified as liabilities and remeasured at fair value through earnings at each reporting period. During the years ended December 31, 2013, 2012 and 2011, $272, $(179) and $(23), respectively, of expense (income) was recorded as a result of the remeasurement of the fair value of these fully vested stock options. | |||||||||||||
Taxes—Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities from a change in tax rates is recognized in the period that includes the enactment date. | |||||||||||||
The Company’s estimate of the valuation allowance for deferred tax assets requires it to make significant estimates and judgments about its future operating results. Deferred tax assets are reduced by valuation allowances if, based on the consideration of all available evidence, it is more-likely-than-not that some portion of the deferred tax asset will not be realized. Significant weight is given to evidence that can be objectively verified. The Company evaluates deferred tax assets on a quarterly basis to determine if valuation allowances are required by considering available evidence. Deferred tax assets are realized by having sufficient future taxable income to allow the related tax benefits to reduce taxes otherwise payable. The sources of taxable income that may be available to realize the benefit of deferred tax assets are future reversals of existing taxable temporary differences, future taxable income, exclusive of reversing temporary differences and carryforwards, taxable income in carry-back years and tax planning strategies that are both prudent and feasible. In evaluating whether to record a valuation allowance, the applicable accounting standards deem that the existence of cumulative losses in recent years is a significant piece of objectively verifiable negative evidence that must be overcome by objectively verifiable positive evidence to avoid the need to record a valuation allowance. The Company has recorded a full valuation allowance against its net deferred tax assets as it is more likely than not that the benefit of the deferred tax assets will not be recognized in future periods. | |||||||||||||
A provision of The Patient Protection and Affordable Care Act enacted in 2010, as amended, (the “Affordable Care Act”) requires manufacturers of medical devices to pay an excise tax on all U.S. medical device sales beginning in January 2013. The Company’s expense related to the medical device excise tax, which was recorded in cost of revenue, was $417 during 2013. | |||||||||||||
Net Loss Per Share—Basic and diluted net loss per share is computed in accordance with FASB ASC 260 “Earnings Per Share” (“ASC 260”) by dividing the net loss by the weighted average number of common shares outstanding during the period. Since the Company has experienced net losses for all periods presented, net loss per share excludes the effect of 2,721, 3,676 and 2,949 stock options, restricted stock and performance-based shares as of December 31, 2013, 2012, and 2011, respectively, because they are anti-dilutive. Therefore, the number of shares calculated for basic net loss per share is also used for the diluted net loss per share calculation. | |||||||||||||
Comprehensive Loss and Accumulated Other Comprehensive Income (Loss)—In addition to net loss, comprehensive loss includes foreign currency exchange rate adjustments and unrealized gains and losses on investments. | |||||||||||||
Accumulated other comprehensive income (loss) consisted of the following: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Total accumulated other comprehensive income (loss) at beginning of period | $ | 77 | $ | (37 | ) | $ | 80 | ||||||
Unrealized gains on investments | |||||||||||||
Balance at beginning of period | $ | 1 | $ | 2 | $ | — | |||||||
Other comprehensive (loss) income before reclassifications | (7 | ) | (1 | ) | 2 | ||||||||
Amounts reclassified from accumulated other comprehensive income to other income on the statement of operations | — | — | — | ||||||||||
Balance at end of period | $ | (6 | ) | $ | 1 | $ | 2 | ||||||
Foreign currency translation adjustment | |||||||||||||
Balance at beginning of period | $ | 76 | $ | (39 | ) | $ | 80 | ||||||
Other comprehensive (loss) income before reclassifications | (478 | ) | 198 | (149 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income to other income on the statement of operations | 269 | (83 | ) | 30 | |||||||||
Balance at end of period | $ | (133 | ) | $ | 76 | $ | (39 | ) | |||||
Total accumulated other comprehensive (loss) income at end of period | $ | (139 | ) | $ | 77 | $ | (37 | ) | |||||
Research and Development Costs—Research and development costs are expensed as incurred. These costs include compensation and other internal and external costs associated with the development and research related to new products or concepts, preclinical studies, clinical trials and cost of products used in trials and tests. | |||||||||||||
Share-Based Employee Compensation—The Company follows FASB ASC 718 “Compensation-Stock Compensation” (“ASC 718”), to record share-based compensation for all employee share-based payment awards, including stock options, restricted stock, performance shares and stock purchases related to an employee stock purchase plan, based on estimated fair values. The Company’s share-based compensation expense recognized under ASC 718 for the years ended December 31, 2013, 2012 and 2011 was $3,080, $3,468 and $2,931, respectively, on a before and after tax basis. | |||||||||||||
FASB ASC 718 requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the Company’s Consolidated Statement of Operations and Comprehensive Loss. The expense has been reduced for estimated forfeitures. FASB ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. | |||||||||||||
The Company estimates the fair value of options on the date of grant using the Black-Scholes option-pricing model (“Black-Scholes model”). The Company’s determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by the Company’s stock price, as well as assumptions regarding a number of highly complex and subjective variables. These variables include but are not limited to the Company’s expected stock price volatility over the term of the awards and actual and projected employee stock option exercise behaviors. For non-employee options, the fair value at the date of grant is subject to adjustment at each vesting date based upon the fair value of the Company’s common stock. The fair value of our market-based performance option grants is estimated at the date of grant using a Monte-Carlo simulation. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in our Consolidated Statement of Operations and Comprehensive Loss. The expense has been reduced for estimated forfeitures. | |||||||||||||
The Company estimates the fair value of restricted stock and performance share awards based upon the grant date closing market price of the Company’s common stock. The Company’s determination of fair value is affected by the Company’s stock price as well as assumptions regarding the number of shares expected to be granted. | |||||||||||||
The Company also has an employee stock purchase plan (“ESPP” or the “Plan”) which is available to all eligible employees as defined by the Plan. Under the ESPP, shares of the Company’s common stock may be purchased at a discount. The Company estimates the number of shares to be purchased under the Plan and records compensation expense based upon the fair value of the stock at the beginning of the purchase period using the Black-Scholes model. | |||||||||||||
The Company has historically issued stock options to non-employee consultants as a form of compensation for services provided to the Company. The Company accounts for the options granted to non-employees prior to their vesting date in accordance with ASC 505-50, “Equity-Based Payments to Non-Employees.” Because these options do not contain specific performance provisions, there is no measurement date of fair value until the options vest. Therefore, the fair value of the options granted and outstanding prior to their vesting date is remeasured each reporting period. | |||||||||||||
Fully vested options to acquire 38 shares of common stock held by non-employee consultants remained unexercised as of both December 31, 2013 and 2012. A liability of $350 and $78 was included in accrued liabilities in the Consolidated Balance Sheets as of December 31, 2013 and 2012, respectively. | |||||||||||||
Use of Estimates—The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates. | |||||||||||||
Fair Value Disclosures—The book value of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, short-term investments, short and long-term other assets, accounts payable, accrued expenses, other liabilities and fixed interest rate debt, approximate their fair values. The Company classifies cash and short-term investments in U.S. government agencies and securities as Level 1 within the fair value hierarchy. Accounts receivable, short-term other assets, accounts payable and accrued expenses are also classified as Level 1. The carrying amounts of these assets and liabilities approximate their fair value due to their relatively short-term nature. Other assets and other liabilities are classified as Level 1 within the fair value hierarchy. Cash equivalents and short-term investments in commercial paper are classified as Level 2 within the fair value hierarchy (see Note 3 – “Fair Value” for further information). Fixed interest rate debt fair value is determined by calculating the net present value of future debt payments and is classified as Level 2. Significant unobservable inputs with respect to the fair value measurement of the Level 3 non-employee stock options are developed using Company data. When an input is changed, the Black-Scholes model is updated and the results are analyzed for reasonableness. |
RECENT_ACCOUNTING_PRONOUNCEMEN
RECENT ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Changes And Error Corrections [Abstract] | ' |
RECENT ACCOUNTING PRONOUNCEMENTS | ' |
2. RECENT ACCOUNTING PRONOUNCEMENTS | |
In February 2013 the FASB issued FASB Accounting Standards Update (“ASU”) 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income”. This new guidance requires presentation of the effect of significant amounts reclassified from each component of accumulated other comprehensive income based on its source and the income statement line items affected by the reclassification. If a component is not required to be reclassified to net income in its entirety, a cross reference to the related footnote for additional information will be required. This ASU is effective for interim and annual reporting periods beginning after December 15, 2012. The Company has evaluated the provisions of ASU 2013-02 and has provided the required provisions in Note 1. | |
In July 2013 the FASB issued FASB ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists”. This new guidance eliminates the diversity in practice for the financial statement presentation of unrecognized tax benefits when a net operating loss carryforward, a similar tax loss or a tax credit carryforward is available to reduce the taxable income or tax payable that would result from disallowance of a tax position. This ASU is effective for interim and annual reporting periods beginning after December 15, 2013. The Company has evaluated the provisions of ASU 2013-11 and has provided the required provisions in Note 1. | |
In September 2013 the United States Treasury Department and the IRS issued final and proposed regulations (the “Tangible Property Regulations”) effective for tax years beginning on or after January 1, 2014, that provided guidance on a number of matters with regard to tangible property, including whether expenditures qualified as deductible repairs, the treatment of materials and supplies, capitalization of tangible property, dispositions of property and related elections. The Company has evaluated the regulations and has determined that they do not have a material impact on the Company’s financial reporting. |
FAIR_VALUE
FAIR VALUE | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
FAIR VALUE | ' | ||||||||||||||||
3. FAIR VALUE | |||||||||||||||||
FASB ASC 820, “Fair Value Measurements and Disclosures,” (“ASC 820”) defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following: | |||||||||||||||||
• | Level 1—Quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. The valuation under this approach does not entail a significant degree of judgment. | ||||||||||||||||
• | Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. The valuation technique for the Company’s Level 2 assets is based on quoted market prices for similar assets from observable pricing sources at the reporting date. | ||||||||||||||||
• | Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Unobservable inputs shall be used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. The fair value of the Company’s Level 3 derivatives are estimated on the grant date using the Black-Scholes model and they are revalued at the end of each reporting period using the Black-Scholes model. | ||||||||||||||||
In accordance with ASC 820, the following table represents the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2013: | |||||||||||||||||
Quoted Prices in | Significant Other | Significant Other | Total | ||||||||||||||
Active Markets for | Observable Inputs | Unobservable | |||||||||||||||
Identical Assets | (Level 2) | Inputs | |||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||
Assets: | |||||||||||||||||
Money market funds | $ | — | $ | 4,295 | $ | — | $ | 4,295 | |||||||||
Commercial paper | — | 2,598 | — | 2,598 | |||||||||||||
U.S. government agencies and securities | 4,145 | — | — | 4,145 | |||||||||||||
Corporate bonds | — | 12,490 | — | 12,490 | |||||||||||||
Total assets | $ | 4,145 | $ | 19,383 | $ | — | $ | 23,528 | |||||||||
Liabilities: | |||||||||||||||||
Derivative instruments | $ | — | $ | — | $ | 350 | $ | 350 | |||||||||
Acquisition-related contingent consideration | — | — | 8,032 | 8,032 | |||||||||||||
Total liabilities | $ | — | $ | — | $ | 8,382 | $ | 8,382 | |||||||||
In accordance with ASC 820, the following table represents the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2012: | |||||||||||||||||
Quoted Prices in | Significant Other | Significant Other | Total | ||||||||||||||
Active Markets for | Observable Inputs | Unobservable | |||||||||||||||
Identical Assets | (Level 2) | Inputs | |||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||
Assets: | |||||||||||||||||
Money market funds | $ | — | $ | 5,261 | $ | — | $ | 5,261 | |||||||||
Commercial paper | — | 3,247 | — | 3,247 | |||||||||||||
U.S. government agencies and securities | 1,000 | — | — | 1,000 | |||||||||||||
Corporate bonds | — | — | — | — | |||||||||||||
Total assets | $ | 1,000 | $ | 8,508 | $ | — | $ | 9,508 | |||||||||
Liabilities: | |||||||||||||||||
Derivative instruments | $ | — | $ | — | $ | 78 | $ | 78 | |||||||||
Total liabilities | $ | — | $ | — | $ | 78 | $ | 78 | |||||||||
There were no changes in the levels of financial assets and liabilities during the twelve months ended December 31, 2013 and 2012, and there were no changes in the methodologies used to determine the levels of financial assets during the twelve months ended December 31, 2013 and 2012. | |||||||||||||||||
Derivative Instruments. The Company has historically issued stock options to non-employee consultants as a form of compensation for services provided to the Company. When these non-employee options fully vest, the awards no longer fall within the scope of ASC 505-50. Because the options require settlement by the Company’s delivery of registered shares and because the tax withholding provisions in the awards allow the options to be partially net-cash settled, these vested options are no longer eligible for equity classification and are accounted for as derivative liabilities under ASC 815 until the awards are ultimately either exercised or forfeited. Accordingly, the vested non-employee options are classified as liabilities and remeasured at fair value through earnings at each reporting period. In calculating the fair value of the options, they are estimated on the grant date using the Black-Scholes model subject to change in stock price utilizing assumptions of risk-free interest rate, contractual life of option, expected volatility, and dividend yield. Due to the lack of certain observable market quotes the Company utilizes valuation models that rely on some Level 3 inputs. The Company’s estimate of volatility is based on the Company’s trading history. | |||||||||||||||||
The fair value of the Level 3 derivative instruments is estimated using the Black-Scholes model including the following assumptions: | |||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | ||||||||||||||||
Risk-free interest rate | 0.11% - 1.32% | 0.23% - 0.74% | |||||||||||||||
Expected life of option (years) | 0.75 - 4.10 | 1.75 - 5.10 | |||||||||||||||
Expected volatility of stock | 70.00% | 70.00% | |||||||||||||||
Dividend yield | 0.00% | 0.00% | |||||||||||||||
The following table represents the company’s Level 3 fair value measurements using significant other unobservable inputs for derivative instruments as of December 31: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Beginning Balance – January 1 | $ | 78 | $ | 208 | $ | 268 | |||||||||||
Total gains/losses (realized/unrealized) included in earnings | 272 | (179 | ) | (23 | ) | ||||||||||||
Purchases (exercises) | — | (50 | ) | (55 | ) | ||||||||||||
Reclassification from equity to liability when fully vested | — | 99 | 18 | ||||||||||||||
Ending Balance – December 31 | $ | 350 | $ | 78 | $ | 208 | |||||||||||
(Losses) gains included in earnings (or changes in net assets attributable to the change in unrealized gains/losses relating to assets held at reporting date) | $ | (272 | ) | $ | 179 | $ | 23 | ||||||||||
Acquisition-Related Contingent Consideration. The Company acquired Endoscopic Technologies, Inc. (“Estech”) on December 31, 2013. The aggregate consideration paid to Estech shareholders includes up to $26 million of contingent consideration to be paid based on the achievement of certain performance-based milestones in 2014 and 2015. The fair value of the contingent consideration was estimated using an expected present value approach to estimate an expected value, which, in statistical terms, is the weighted average of a discrete random variable’s possible values with the respective probabilities as the weights. This fair value measurement is based on significant inputs not observable in the market and thus represents a Level 3 measurement within the fair value hierarchy. Using this valuation technique, the fair value of the contingent consideration was determined to be $8,032 at December 31, 2013. | |||||||||||||||||
The following table represents the company’s Level 3 fair value measurements using significant other unobservable inputs for acquisition-related contingent consideration as of December 31: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Beginning Balance – January 1 | $ | — | $ | — | $ | — | |||||||||||
Amounts acquired (sold) or issued (settled), net | 8,032 | — | — | ||||||||||||||
Transfers in and/or (out) of Level 3 | — | — | — | ||||||||||||||
Changes in fair value recorded in earnings | — | — | — | ||||||||||||||
Ending Balance – December 31 | $ | 8,032 | $ | — | $ | — | |||||||||||
INVESTMENTS
INVESTMENTS | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Investments Debt And Equity Securities [Abstract] | ' | ||||||||||||
INVESTMENTS | ' | ||||||||||||
4. INVESTMENTS | |||||||||||||
Investments as of December 31, 2013 consisted of the following: | |||||||||||||
Cost Basis | Unrealized | Fair Value | |||||||||||
Gains (Losses) | |||||||||||||
Corporate bonds | $ | 12,498 | $ | (8 | ) | $ | 12,490 | ||||||
U.S. Government agencies and securities | 4,143 | 2 | 4,145 | ||||||||||
Commercial paper | 2,598 | 0 | 2,598 | ||||||||||
Total | $ | 19,239 | $ | (6 | ) | $ | 19,233 | ||||||
Money market funds are included in cash and cash equivalents and are not included in investments. | |||||||||||||
As of December 31, 2012, the Company had no long-term investments. Short-term investments as of December 31, 2012 consisted of the following: | |||||||||||||
Cost Basis | Unrealized | Fair Value | |||||||||||
Gains | |||||||||||||
U.S. Government agencies and securities | $ | 999 | $ | 1 | $ | 1,000 | |||||||
Commercial paper | 3,247 | 0 | 3,247 | ||||||||||
Total | $ | 4,246 | $ | 1 | $ | 4,247 | |||||||
The Company has not experienced any significant realized gains or losses on its investments in the periods presented in the Consolidated Statements of Operations and Comprehensive Loss. |
BUSINESS_COMBINATION
BUSINESS COMBINATION | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Business Combinations [Abstract] | ' | ||||||||
BUSINESS COMBINATION | ' | ||||||||
5. BUSINESS COMBINATION | |||||||||
On December 31, 2013 the Company completed its acquisition of Endoscopic Technologies, Inc. (“Estech”). The Company acquired 100% of the outstanding common and preferred shares and voting interest of Estech. The total consideration paid to Estech’s former shareholders in the acquisition was $34,000, paid through the issuance of 2,126,343 shares of AtriCure common stock with a value of $15.99 per share. The share value was calculated using the volume-weighted average share price of the ten days prior to the date of the signing of the merger agreement. Based on the Company’s closing stock price of $18.68 on December 31, 2013, the value of the 2,126,343 shares issued was $39,720 at the closing of the merger. | |||||||||
In addition, there is contingent consideration related to an earnout calculation that provides for the Company to pay Estech shareholders up to $26,000 based on future performance of minimally invasive (“MIS”) sales with a fair value of $8,032. The earnout calculation is based on the achievement of performance-based milestones. The milestones are a payment equal to $3,000 upon the achievement of Combined MIS Revenue of at least 90% of the 2014 Combined MIS Revenue Target or the 2015 Combined Revenue Company, a scaled payment of up to $2,500 based on achieving Combined MIS Revenue of between 90% and 98% of the 2014 Combined MIS Revenue Target or the 2015 Combined MIS Revenue Target, a scaled payment of up to $2,500 based on achieving Combined MIS Revenue of between 98% and 100% of the 2014 Combined MIS Revenue Target or the 2015 Combined Revenue Company and a scaled payment of up to $5,000 based on achieving Combined MIS Revenue of between 100% and 125% of the 2014 Combined MIS Revenue Target or the 2015 Combined Revenue Company. The Company has the option to make the payment related to the achievement of at least 90% of the 2014 Combined MIS Revenue Target or the 2015 Combined Revenue Company in cash or through the issuance of AtriCure common stock. The other payments may only be made in cash. The fair value of the earnout calculation was estimated using an expected present value approach to estimate an expected value, which, in statistical terms, is the weighted average of a discrete random variable’s possible values with the respective probabilities as the weights. | |||||||||
Estech was incorporated in 1996 and has been operating since that time developing and marketing a broad portfolio of innovative medical devices and disposables that enable cardiac surgeons worldwide to perform a variety of traditional and minimally invasive surgical procedures. AtriCure’s management believes the acquisition of Estech will expand the Company’s presence and reinforce its commitment to the atrial fibrillation market. The combination of the two companies enhances the Company’s leadership and intellectual property position across surgical ablation and epicardial left atrial appendage closure and accelerates the availability of broader surgical ablation offerings through the combination of Estech’s sales and marketing and research and development capabilities worldwide under the AtriCure umbrella. | |||||||||
The acquisition was accounted for in accordance with FASB ASC 805, “Accounting for Business Combinations” (“ASC 805”). The acquisition method of accounting was used to account for the acquisition. Under the acquisition method of accounting, the purchase price is required to be allocated to the underlying tangible and intangible assets acquired and liabilities assumed based on their respective fair market values. Any purchase price in excess of the fair market value of the acquired tangible and intangible assets is required to be allocated to goodwill in our consolidated balance sheet as of the end of the period in which the acquisition closed. The process for estimating the fair values of identifiable intangible assets and certain tangible assets and assumed liabilities requires the use of judgment in determining the appropriate assumptions and estimates. The judgments used to determine the estimated fair value assigned to each class of assets acquired and liabilities assumed, as well as asset lives, can materially impact the Company’s results of operations. | |||||||||
The operating results of Estech will be included in the Consolidated Statements of Operations and Comprehensive Loss beginning January 1, 2014. The Consolidated Balance Sheet as of December 31, 2013 reflects the acquisition of Estech. | |||||||||
The following table summarizes the estimated fair values of the assets acquired and liabilities assumed on the acquisition date: | |||||||||
December 31, | |||||||||
2013 | |||||||||
Cash and cash equivalents | $ | 3,708 | |||||||
Accounts receivable, net | 2,378 | ||||||||
Inventories | 2,156 | ||||||||
Other current assets | 271 | ||||||||
Property and equipment, net | 1,026 | ||||||||
Intangible assets, net | 10,279 | ||||||||
Other assets | 51 | ||||||||
Total identifiable assets | $ | 19,869 | |||||||
Accounts payable | $ | 1,761 | |||||||
Accrued liabilities | 5,742 | ||||||||
Total liabilities assumed | $ | 7,503 | |||||||
Net identifiable assets acquired | $ | 12,366 | |||||||
Goodwill | 35,386 | ||||||||
Total consideration | $ | 47,752 | |||||||
The above estimated fair values of assets acquired and liabilities assumed are provisional and are based on the information that was available as of the acquisition date to estimate the fair value of assets acquired and liabilities assumed. The Company believes that information provides a reasonable basis for estimating the fair values but the Company is waiting for additional information necessary to finalize those amounts, particularly with respect to the estimated fair value of intangible assets, deferred revenue, deferred taxes and goodwill. The potential for measurement period adjustments related to the acquired assets and assumed liabilities exists based on AtriCure’s continuing review of all matters related to the acquisition. Such changes could be significant. The Company expects to finalize the valuation and complete the purchase price allocation as soon as practicable but no later than one year from the acquisition date. | |||||||||
The valuation of the intangible assets acquired and related amortization periods are as follows: | |||||||||
Valuation | Amortization Term | ||||||||
(in years) | |||||||||
Fusion technology | $ | 9,242 | 10 | ||||||
Clamp and probe technology | 829 | 3 | |||||||
Estech trade name | 208 | 1 | |||||||
Total | $ | 10,279 | |||||||
The fair value of the Fusion technology was estimated using a discounted present value income approach. Under this method, an intangible asset’s fair value is equal to the present value of the incremental after-tax cash flows (excess earnings) attributable solely to the intangible asset over its remaining useful life. To calculate fair value, the Company used cash flows discounted at rates considered appropriate given the inherent risks associated with each type of intangible asset. The Company believes that the level and timing of cash flows appropriately reflect market participant assumptions. The fair values of the clamp and probe technology and the Estech trade name were estimated using a present value income approach based on royalty savings. Under this method, the fair value is equal to the present value of after-tax royalty savings plus the present value of the tax amortization benefit attributable to the intangible assets over their useful lives. The intangible assets will be amortized over their useful lives using the straight-line method. | |||||||||
The Company recognized $1,207 of Estech acquisition-related costs that were expensed during 2013. These costs are included in selling, general and administrative expenses in the accompanying Consolidated Statements of Operations and Comprehensive Loss and are comprised of the following items: | |||||||||
Bank fees and expenses | $ | 509 | |||||||
Legal, audit, tax and other costs | 698 | ||||||||
Total | $ | 1,207 | |||||||
The following supplemental pro forma information presents the financial results as if the acquisition of Estech had occurred on January 1, 2012 for the years ended December 31, 2013 and 2012. This supplemental pro forma information has been prepared for comparative purposes and does not purport to be indicative of what would have occurred had the acquisition been made on January 1, 2012, nor are they indicative of any future results. | |||||||||
Year Ended | |||||||||
December 31, (unaudited) | |||||||||
2013 | 2012 | ||||||||
Revenue | $ | 93,846 | $ | 81,954 | |||||
Net loss | (21,161 | ) | (19,031 | ) | |||||
Basic and diluted net loss per share | (0.91 | ) | (1.04 | ) | |||||
These amounts have been calculated after applying the Company’s accounting policies and adjusting the results of Estech to reflect factually supportable adjustments that give effect to events that are directly attributable to the Estech acquisition. |
INTANGIBLE_ASSETS_AND_GOODWILL
INTANGIBLE ASSETS AND GOODWILL | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
INTANGIBLE ASSETS AND GOODWILL | ' | ||||||||||||||||||||||||
6. INTANGIBLE ASSETS AND GOODWILL | |||||||||||||||||||||||||
Intangible assets with definite lives are amortized over their estimated useful lives. The following table provides a summary of the Company’s intangible assets with definite lives: | |||||||||||||||||||||||||
Non-Compete | Cooper | Fusion | Clamp & | Estech Trade | Total | ||||||||||||||||||||
Agreement | Trade | Technology | Probe | Name | |||||||||||||||||||||
Name | Technology | ||||||||||||||||||||||||
Net carrying amount as of December 31, 2010 | $ | 57 | $ | 32 | $ | — | $ | — | $ | — | $ | 89 | |||||||||||||
Amortization | (12 | ) | (32 | ) | — | — | — | (44 | ) | ||||||||||||||||
Net carrying amount as of December 31, 2011 | 45 | — | — | — | — | 45 | |||||||||||||||||||
Amortization | (13 | ) | — | — | — | — | (13 | ) | |||||||||||||||||
Net carrying amount as of December 31, 2012 | 32 | — | — | — | — | 32 | |||||||||||||||||||
Amortization | (12 | ) | — | — | — | — | (12 | ) | |||||||||||||||||
Additions | — | — | 9,242 | 829 | 208 | 10,279 | |||||||||||||||||||
Net carrying amount as of December 31, 2013 | $ | 20 | $ | — | $ | 9,242 | $ | 829 | $ | 208 | $ | 10,299 | |||||||||||||
The Company’s amortization term for a non-compete agreement is eight years. The Cooper trade name usage intangible asset was amortized over a four-year period. For the years ended December 31, 2013, 2012 and 2011, amortization expense related to intangible assets with definite lives was $12, $13 and $44, respectively. Three intangible assets were acquired through the Estech acquisition. Fusion technology with a value of $9,242 will be amortized over ten years. Clamp and probe technology with a value of $829 will be amortized over three years. The Estech trade name has a value of $208 and will be amortized over one year. | |||||||||||||||||||||||||
Future amortization expense related to intangible assets with definite lives is projected as follows: | |||||||||||||||||||||||||
Year | Amortization | ||||||||||||||||||||||||
2014 | $ | 1,421 | |||||||||||||||||||||||
2015 | 1,208 | ||||||||||||||||||||||||
2016 | 1,201 | ||||||||||||||||||||||||
2017 | 924 | ||||||||||||||||||||||||
2018 | 924 | ||||||||||||||||||||||||
2019 and thereafter | 4,621 | ||||||||||||||||||||||||
Total | $ | 10,299 | |||||||||||||||||||||||
In December 2011 the Company entered into a patent purchase agreement with Nu Energy Solutions LLC in which it received proceeds of $300 in connection with the sale of certain intellectual property. Pursuant to the agreement, the Company agreed to sell its Bipolar Tissue Grasping Apparatus and Tissue Welding Method patent. The Company recorded the gain on sale of $300 in research and development expenses in the Consolidated Statements of Operations and Comprehensive Loss. | |||||||||||||||||||||||||
Goodwill representing the excess of purchase price over the fair value of the net assets acquired in the Estech acquisition was recorded as of the acquisition date. The following table provides a summary of the Company’s goodwill: | |||||||||||||||||||||||||
Net carrying amount as of December 31, 2012 | $ | — | |||||||||||||||||||||||
Goodwill amount recorded | 35,386 | ||||||||||||||||||||||||
Net carrying amount as of December 31, 2013 | $ | 35,386 | |||||||||||||||||||||||
INVENTORIES
INVENTORIES | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
INVENTORIES | ' | ||||||||
7. INVENTORIES | |||||||||
Inventories consisted of the following at December 31: | |||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 3,279 | $ | 3,066 | |||||
Work in process | 1,472 | 675 | |||||||
Finished goods | 5,463 | 1,977 | |||||||
Inventories | $ | 10,214 | $ | 5,718 | |||||
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
PROPERTY AND EQUIPMENT | ' | ||||||||
8. PROPERTY AND EQUIPMENT | |||||||||
Property and equipment consisted of the following at December 31: | |||||||||
2013 | 2012 | ||||||||
Machinery, equipment and vehicles | $ | 9,917 | $ | 7,489 | |||||
Computer and other office equipment | 1,522 | 1,538 | |||||||
Furniture and fixtures | 208 | 212 | |||||||
Leasehold improvements | 262 | 165 | |||||||
Equipment under capital leases | 153 | 226 | |||||||
Construction in progress | 411 | 68 | |||||||
Total | 12,473 | 9,698 | |||||||
Less accumulated depreciation | (6,830 | ) | (6,268 | ) | |||||
Property and equipment, net | $ | 5,643 | $ | 3,430 | |||||
Property and equipment depreciation expense was $2,008, $1,886 and $1,878 for the years ended December 31, 2013, 2012 and 2011, respectively. |
ACCRUED_LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Payables And Accruals [Abstract] | ' | ||||||||
ACCRUED LIABILITIES | ' | ||||||||
9. ACCRUED LIABILITIES | |||||||||
Accrued liabilities consisted of the following at December 31: | |||||||||
2013 | 2012 | ||||||||
Accrued bonus | $ | 6,849 | $ | 487 | |||||
Accrued commissions | 3,827 | 1,464 | |||||||
Accrued settlement reserve (current portion) | 1,259 | 1,120 | |||||||
Other accrued liabilities | 1,105 | 458 | |||||||
Accrued taxes and value-added taxes payable | 907 | 366 | |||||||
Withheld payroll taxes | 546 | 151 | |||||||
Accrued vacation | 476 | 349 | |||||||
Accrued non-employee stock options | 350 | 78 | |||||||
Accrued royalty | 307 | 118 | |||||||
Accrued payroll | 233 | 153 | |||||||
Sales/returns allowance—trade | 105 | 105 | |||||||
Accrued 401(k) match | 84 | — | |||||||
Accrued severance | 22 | 224 | |||||||
Total | $ | 16,070 | $ | 5,073 | |||||
INDEBTEDNESS
INDEBTEDNESS | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
INDEBTEDNESS | ' | ||||||||
10. INDEBTEDNESS | |||||||||
Long-term debt and capital leases consisted of the following at December 31: | |||||||||
2013 | 2012 | ||||||||
Credit facility | $ | 6,333 | $ | 8,333 | |||||
Capital leases | 117 | 103 | |||||||
Total debt and capital leases | 6,450 | 8,436 | |||||||
Less: Current maturities | (2,038 | ) | (2,029 | ) | |||||
Total long-term debt and capital leases | $ | 4,412 | $ | 6,407 | |||||
The Company has had a debt agreement with Silicon Valley Bank (“SVB”) since May 1, 2009. The agreement, as amended, restated and modified, includes a $10,000 term loan which matures on February 2, 2017 and a $10,000 revolving credit facility which matures on April 30, 2014. The agreement, as amended, restated and modified, contains covenants that include, among others, covenants that limit the Company’s and its subsidiaries’ ability to dispose of assets, enter into mergers or acquisitions, incur indebtedness, incur liens, pay dividends or make distributions on the Company’s capital stock, make investments or loans, and enter into certain affiliate transactions, in each case subject to customary exceptions for a credit facility of this size and type. Additional covenants apply when the Company has outstanding borrowings under the revolving loan facility or when the Company achieves specific covenant milestones. Financial covenants under the credit facility, as amended, include a minimum EBITDA, a limitation on capital expenditures, and a minimum liquidity ratio. Further, a minimum fixed charge ratio applies when the Company achieves specific covenant milestones. None of the specific covenant milestones have been met as of December 31, 2013. The occurrence of an event of default could result in an increase to the applicable interest rate by 3.0%, an acceleration of all obligations under the Agreement, an obligation of the Company to repay all obligations in full and a right by SVB to exercise all remedies available to it under the Agreement and related agreements including the Guaranty and Security Agreement. | |||||||||
Effective January 30, 2013 the Company and SVB entered into a Joinder and Loan Modification Agreement and an Export-Import Bank Joinder and Loan Modification Agreement which set forth certain amendments to the Company’s credit facility with the Bank. These Modification Agreements added the Company’s wholly-owned subsidiary, AtriCure, LLC, as a borrower, and such Loan Modification Agreement modified the Company’s timing for submitting a forecast to the Bank and decreased the EBITDA amount the Company must achieve to meet the minimum EBITDA covenant. | |||||||||
Effective March 29, 2013 the Company and SVB entered into a Loan Modification Agreement and an Export-Import Bank Loan Modification Agreement which set forth certain amendments to the Company’s credit facility with the Bank. These Modification Agreements provide for (i) a change in the applicable borrowing rate on the revolving credit facility from 0.25% to 1.25% above the prime rate based on the Company’s Liquidity Ratio to the prime rate during a Streamline Period and prime plus 1.25% during a Non-Streamline Period, (ii) a reduction in the collateral handling fee on the revolving credit facility, (iii) a reduction in the fixed interest rate on the term loan from 6.75% to 4.75% and (iv) modifications to the Liquidity Ratio and EBITDA financial covenants. The interest rate was 4.75% as of December 31, 2013 and 6.75% as of December 31, 2012. | |||||||||
As of December 31, 2013 the Company had no borrowings under the revolving credit facility and borrowing availability of $8,299. Also as of December 31, 2013, the Company had $6,333 outstanding under its term loan, which includes $2,000 classified as current maturities of long-term debt. As of December 31, 2012, the Company had no borrowings under its revolving credit facility and borrowing availability of $5,303. Also as of December 31, 2012, the Company had $8,333 outstanding under its term loan, which included $2,000 classified as current maturities of long-term debt. | |||||||||
The Warrant that was issued with the initial SVB agreement had been recorded as a discount on long-term debt at its fair value and was being amortized over the term of the loan. Accelerated amortization expense of $79 was recorded in March 2011 due to the credit facility modification. No amortization expense related to the debt discount was recorded during the years ended December 31, 2013 and 2012. In addition to the accelerated amortization of the Warrant, the Company also recorded $74 of expense related to deferred financing costs and other fees as a result of the credit facility modification in March 2011. | |||||||||
As of December 31, 2013 the effective interest rate on borrowings under the modified term loan, including debt issuance costs, was 6.5%, and the book value of the Company’s fixed interest rate debt approximated fair value. The Company has an outstanding letter of credit of €75 issued to its European subsidiary’s corporate credit card program provider which will expire on June 30, 2015. No letters of credit were outstanding at December 31, 2012 and 2011. In June 2011 the Company cancelled an outstanding letter of credit for $250 issued to its corporate credit card program provider which was to expire on July 31, 2011. | |||||||||
As of December 31, 2013 the Company had capital leases for computer equipment that expire at various terms through 2017. The cost of the assets under lease was $153. The assets are depreciated over their estimated useful lives, which equal the terms of the leases. Accumulated amortization on the capital leases was $41 at December 31, 2013. | |||||||||
Maturities on debt, including capital lease obligations are as follows: | |||||||||
Year | Amount | ||||||||
2014 | $ | 2,038 | |||||||
2015 | 2,038 | ||||||||
2016 | 2,030 | ||||||||
2017 | 344 | ||||||||
Total | $ | 6,450 | |||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||
COMMITMENTS AND CONTINGENCIES | ' | ||||
11. COMMITMENTS AND CONTINGENCIES | |||||
Operating Leases. The Company leases various types of office, manufacturing and warehouse facilities and equipment under noncancelable operating leases that expire at various terms through 2015. Future minimum lease payments under non-cancelable operating leases are as follows: | |||||
Year | Amount | ||||
2014 | $ | 1,190 | |||
2015 | 456 | ||||
Total | $ | 1,646 | |||
Rent expense was approximately $870, $769 and $685 in 2013, 2012, and 2011, respectively. | |||||
Royalty Agreements. The Company has certain royalty agreements in place with terms that include payment of royalties based on product revenue from sales of current products. The royalty agreements have effective dates as early as 2003 and terms ranging from three years to at least twenty years. The royalties range from 1.5% to 5% of product sales. One of the agreements includes minimum quarterly payments of $50 through 2015 and a maximum of $2,000 in total royalties over the term of the agreement. Parties to the royalty agreements have the right at any time to terminate the agreement immediately for cause. Royalty expense of $962, $603 and $505 was recorded as part of cost of revenue for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||
Purchase Agreements. On June 15, 2007 the Company entered into a purchase agreement with MicroPace Pty Ltd Inc., (“MicroPace”). The agreement, as amended, provides for MicroPace to produce a derivative of one of their products tailored for the cardiac surgical environment, known as the “MicroPace ORLab™” for worldwide distribution by the Company. Pursuant to the terms of the amended agreement, in order for the Company to retain exclusive distribution rights, the Company was required to purchase a minimum of 40 units during the period December 1, 2010 through December 31, 2011 to extend exclusivity through 2012 and an additional 40 units during 2012 to extend exclusivity through December 31, 2013. Units purchased in excess of yearly minimums reduce future minimum purchase requirements. A total of 56 units were purchased by the Company between December 1, 2010 and December 31, 2011, thereby extending exclusive distribution rights through December 31, 2012. A total of 60 units were purchased by the Company during 2012, fulfilling the purchase requirement to extend exclusive distribution rights through 2013. | |||||
In April 2012 the Company entered into a development and manufacturing services agreement with Stellartech Research Corporation (“Stellartech”). Under the terms of the agreement, Stellartech will provide development services for the next generation of the Company’s radio frequency generators and will manufacture at least the first 300 units of the product. The agreement also establishes Stellartech as the exclusive supplier of the generators during the initial three years after product completion. There is no minimum purchase requirement beyond the initial 300 units. | |||||
Distributor Termination. In July 2010 the Company terminated a distributor agreement with a European distributor. Under the terms of the agreement the Company paid the distributor a termination fee, repurchased saleable disposable product inventory and assigned the distributor’s capital equipment to AtriCure Europe BV. Additionally, the Company entered into a consulting agreement with the distributor to provide ongoing consulting services through September 30, 2012. In exchange for these services, beginning October 1, 2010, the distributor earned €50 (approximately $69) per quarter for a total of €400 (approximately $550). | |||||
Chief Financial Officer and Chief Executive Officer Resignations. The Company’s Vice President, Finance and Administration and Chief Financial Officer (“CFO”) resigned effective April 30, 2012. In connection with the resignation, the CFO and AtriCure entered into an agreement pursuant to which the CFO is entitled to receive: (i) all accrued and unpaid base salary through the effective date of the resignation; (ii) payment for any accrued and unused vacation; (iii) continued vesting of all stock options and restricted stock until April 30, 2013; and (iv) twelve (12) months base salary ($250). | |||||
On August 2, 2012, the Company’s Chief Executive Officer and President (“CEO”) notified the Company that he was resigning from his positions with the Company. Pursuant to his Employment Agreement, the CEO continued to serve as Chief Executive Officer and President of the Company through September 30, 2012. The CEO’s term as a member of the Company’s Board of Directors ended effective August 2, 2012. In connection with the resignation, the CEO and AtriCure entered into an agreement pursuant to which he is entitled to receive: (i) all accrued and unpaid base salary through the effective date of the resignation; (ii) payment for any accrued and unused vacation; (iii) continued vesting of all stock options and restricted stock until March 31, 2013; and (iv) six (6) months base salary ($225). | |||||
The Company recorded a total of approximately $1,600 in expense related to the departure of the Company’s Chief Financial Officer and Chief Executive Officer during 2012. | |||||
Legal. The Company is not party to any material pending or threatened litigation, except as described below: | |||||
Department of Justice Investigation | |||||
In October 2008 the Company received a letter from the Department of Justice (“DOJ”) informing the Company that it was conducting an investigation for potential False Claims Act (“FCA”) and common law violations relating to its surgical ablation devices. Specifically, the letter stated that the DOJ was investigating the Company’s marketing practices utilized in connection with its surgical ablation system to treat AF, a specific use outside the FDA’s 510(k) clearance. The letter also stated that the DOJ was investigating whether the Company instructed hospitals to bill Medicare for cardiac surgical ablation using incorrect billing codes. The Company cooperated with the investigation and operated its business in the ordinary course during the investigation. In December 2009 the Company reached a tentative settlement with the DOJ to resolve the investigation and recorded a liability and charged operating expenses for a total of $3,956, which represented the net present value of the proposed settlement amount to be paid to the DOJ, the Relator, and Relator’s counsel (total payments based on the settlement inclusive of interest were estimated to be $4,350, payable over five years). | |||||
The settlement was finalized pursuant to the preliminary terms in February 2010, and the Company entered into a settlement agreement with the DOJ, the Office of the Inspector General (“OIG”), and the Relator in the qui tam complaint discussed below. The settlement agreement definitively resolved all claims related to the DOJ investigation. The Company did not admit nor will it admit to any wrongdoing in connection with the settlement. As of December 31, 2013 the Company had made $3,225 in payments (including interest), and had a liability related to this settlement totaling $1,109, all of which was classified as current. | |||||
As part of the resolution, the Company also entered into a five year Corporate Integrity Agreement with the OIG. This agreement acknowledges the existence of the Company’s corporate compliance program and provides for certain other compliance-related activities during the five year term of the agreement. Those activities include specific written standards, monitoring, training, education, independent review, disclosure and reporting requirements. | |||||
Qui Tam Complaint | |||||
In July 2009 a copy of a qui tam complaint against the Company was unsealed. The qui tam complaint, filed in the U.S. District Court for the Southern District of Texas, was originally filed by the Relator in August 2007. The complaint, which was related to the DOJ investigation, alleged a cause of action under the FCA relating to the Company’s alleged marketing practices in connection with its surgical cardiac ablation devices. In August 2009 the DOJ declined to intervene in the qui tam complaint. The qui tam complaint was settled in February 2010 in accordance with the DOJ settlement agreement above. | |||||
The Company may from time to time become a party to additional legal proceedings. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||||||||||
INCOME TAXES | ' | ||||||||||||||||||||||||
12. INCOME TAXES | |||||||||||||||||||||||||
The Company files federal, state, and foreign income tax returns in jurisdictions with varying statutes of limitations. Income taxes are computed using the asset and liability method in accordance with FASB ASC 740 under which deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities. Deferred taxes are measured using provisions of currently enacted tax laws. A valuation allowance against deferred tax assets is recorded when it is more likely than not that such assets will not be fully realized. The Company has recorded a full valuation allowance against its net deferred tax assets as it is more likely than not that the benefit of the deferred tax assets will not be recognized in future periods. Tax credits are accounted for as a reduction of income taxes in the year in which the credit originates. The Company does not expect any significant unrecognized tax benefits to arise over the next twelve months and is fully reserved. | |||||||||||||||||||||||||
The detail of deferred tax assets and liabilities at December 31 is as follows: | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Deferred tax assets (liabilities): | |||||||||||||||||||||||||
Net operating loss carryforward | $ | 46,362 | $ | 22,974 | |||||||||||||||||||||
Research and development credit carryforward | 4,425 | 3,603 | |||||||||||||||||||||||
Equity compensation | 2,477 | 4,082 | |||||||||||||||||||||||
Accruals and reserves | 1,007 | 269 | |||||||||||||||||||||||
Inventories | 290 | 228 | |||||||||||||||||||||||
Intangible assets | (186 | ) | 757 | ||||||||||||||||||||||
Property and equipment, net | (173 | ) | (230 | ) | |||||||||||||||||||||
Other, net | 9 | 2 | |||||||||||||||||||||||
Subtotal | 54,211 | 31,685 | |||||||||||||||||||||||
Less valuation allowance | (54,211 | ) | (31,685 | ) | |||||||||||||||||||||
Total | $ | — | $ | — | |||||||||||||||||||||
The Company’s provision for income taxes is as follows: | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Current income tax expense | $ | 18 | $ | 50 | $ | 31 | |||||||||||||||||||
Deferred tax benefit | (3,728 | ) | (2,336 | ) | (2,005 | ) | |||||||||||||||||||
Increase in valuation allowance | 3,728 | 2,336 | 2,005 | ||||||||||||||||||||||
Total income tax expense | $ | 18 | $ | 50 | $ | 31 | |||||||||||||||||||
The Company has a federal net operating loss carryforward of $120,320 which will begin to expire in 2019 and state net operating loss carryforwards of $63,387 which have varying expirations ranging from five years to twenty years. The Company also has a foreign net operating loss carryforward of approximately $11,779 which will begin to expire in 2016. Additionally, the Company has a federal research and development credit carryforward of $5,207 which will begin to expire in 2022. | |||||||||||||||||||||||||
The Company’s 2013, 2012 and 2011 effective income tax rates differ from the federal statutory rate as follows: | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Federal tax at statutory rate | 34 | % | $ | (3,891 | ) | 34 | % | $ | (2,483 | ) | 34 | % | $ | (1,844 | ) | ||||||||||
Federal R&D credit | 3.35 | (383 | ) | 0.08 | (6 | ) | 6.11 | (332 | ) | ||||||||||||||||
Valuation allowance | (29.63 | ) | 3,391 | (31.98 | ) | 2,336 | (37.09 | ) | 2,012 | ||||||||||||||||
State income taxes | 0.04 | (5 | ) | 0.67 | (49 | ) | 2.9 | (157 | ) | ||||||||||||||||
Foreign NOL rate change | 2.47 | (283 | ) | 1.4 | (102 | ) | — | — | |||||||||||||||||
Foreign tax rate differential | (1.60 | ) | 183 | (1.94 | ) | 142 | (1.49 | ) | 81 | ||||||||||||||||
Other | (8.79 | ) | 1,006 | (2.91 | ) | 212 | (5.00 | ) | 271 | ||||||||||||||||
Effective tax rate | (0.16 | )% | $ | 18 | (0.68 | )% | $ | 50 | (0.57 | )% | $ | 31 | |||||||||||||
The Company’s pre-tax book loss for domestic and international operations was ($9,409) and ($2,035), respectively, for 2013, ($5,909) and ($1,575), respectively, for 2012 and ($4,530) and ($895), respectively, for 2011. | |||||||||||||||||||||||||
The Company currently has not had to accrue interest and penalties related to unrecognized tax benefits. However, when or if the situation occurs, the Company will recognize interest and penalties within the income tax expense (benefit) line in the accompanying Consolidated Statements of Operations and Comprehensive Loss and within the related tax liability line in the Consolidated Balance Sheets. | |||||||||||||||||||||||||
Federal, state, and local tax returns of the Company are routinely subject to examination by various taxing authorities. Federal returns for periods beginning in 2010 are open for examination. However, taxing authorities have the ability to adjust net operating loss and tax credit carryforwards from years prior to these periods. The Company has not recognized certain tax benefits because of the uncertainty of realizing the entire value of the of the tax position taken on income tax returns upon review by the taxing authorities. | |||||||||||||||||||||||||
A reconciliation of the change in federal and state unrecognized tax benefits for 2013, 2012, and 2011 is presented below: | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Balance at the beginning of the year | $ | — | $ | — | $ | — | |||||||||||||||||||
Increases (decreases) for prior year tax positions | 1,982 | — | — | ||||||||||||||||||||||
Increases (decreases) for current year tax positions | — | — | — | ||||||||||||||||||||||
Increases (decreases) related to settlements | — | — | — | ||||||||||||||||||||||
Decreases related to statute lapse | — | — | — | ||||||||||||||||||||||
Balance at the end of the year | $ | 1,982 | $ | — | $ | — | |||||||||||||||||||
There are no amounts included in the balance of unrecognized tax benefits at December 31, 2013, 2012 and 2011 that, if recognized, would affect the effective tax rate. Included in the balance of unrecognized tax benefits at December 31, 2013 are $1,982 of tax benefits that, if recognized, would result in adjustments to other tax accounts, primarily deferred taxes and valuation allowance. There are no accrued interest and penalties associated with the unrecognized tax benefit. |
CONCENTRATIONS
CONCENTRATIONS | 12 Months Ended |
Dec. 31, 2013 | |
Risks And Uncertainties [Abstract] | ' |
CONCENTRATIONS | ' |
13. CONCENTRATIONS | |
During fiscal 2013, 2012 and 2011 approximately 20.4%, 19.6% and 20.9%, respectively, of the Company’s total net revenue was derived from its top ten customers. During 2013, 2012, and 2011 no customer accounted for more than 10% of the Company’s revenue. | |
The Company maintains cash and cash equivalents balances at financial institutions which at times exceed FDIC limits. As of December 31, 2013 $34,336 of the cash and cash equivalents balance was in excess of the FDIC limits. |
EMPLOYEE_BENEFIT_PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2013 | |
Postemployment Benefits [Abstract] | ' |
EMPLOYEE BENEFIT PLANS | ' |
14. EMPLOYEE BENEFIT PLANS | |
The Company sponsors the AtriCure, Inc. 401(k) Plan, a defined contribution plan covering substantially all employees of the Company (the “Plan”). The Plan was amended effective September 1, 2011 to reflect modifications to the Plan due to a change in Plan Administrator. Eligible employees may contribute up to $17 of their pre-tax annual compensation (up to $22 for participants over age 50). During 2013, 2012 and 2011 the Company made matching contributions of 25% of the first 6% of employee contributions to the Plan. The Company’s matching contributions expensed during 2013 and 2012 were $606 and $234, respectively. Additional amounts may be contributed to the Plan at the discretion of the Company’s board of directors. No such discretionary contributions were made during 2013, 2012 or 2011. | |
Estech also sponsors a 401(k) plan in which participants may elect to contribute portions of their salary, subject to statutory limitations, and receive a matching contribution, as defined by the plan. The Estech 401(k) plan was acquired by the Company through its acquisition of Estech. |
EQUITY_COMPENSATION_PLANS
EQUITY COMPENSATION PLANS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||
EQUITY COMPENSATION PLANS | ' | ||||||||||||||||
15. EQUITY COMPENSATION PLANS | |||||||||||||||||
The Company has several share-based incentive plans: the 2001 Stock Option Plan (the “2001 Plan”), the 2005 Equity Incentive Plan (the “2005 Plan”) and the 2008 Employee Stock Purchase Plan (the “ESPP”). | |||||||||||||||||
2001 Plan and 2005 Plan | |||||||||||||||||
The 2001 Plan is no longer used for granting incentives. Under the 2005 Plan, the Board of Directors may grant incentive stock options to employees and any parent or subsidiary’s employees, and may grant nonstatutory stock options, restricted stock, stock appreciation rights, performance units or performance shares to employees, directors and consultants of the Company and any parent or subsidiary’s employees, directors and consultants. The administrator (currently the Compensation Committee of the Board of Directors) has the power to determine the terms of any awards, including the exercise price of options, the number of shares subject to each award, the exercisability of the awards and the form of consideration. | |||||||||||||||||
Options granted under the 2001 Plan and the 2005 Plan generally expire ten years from the date of grant. Options granted from the 2001 Plan are generally exercisable beginning one year from the date of grant in cumulative yearly amounts of 25% of the shares granted. Options granted from the 2005 Plan generally vest at a rate of 25% on the first anniversary date of the grant and ratably each month thereafter. Restricted stock awards granted under the 2005 Plan generally vest 25% annually over four years from date of grant. | |||||||||||||||||
As of December 31, 2013 6,893 shares of common stock had been reserved for issuance under the 2005 Plan. The shares authorized for issuance under the 2005 Plan include (a) shares reserved but unissued under the 2001 Plan as of August 10, 2005, (b) shares returned to the 2001 Plan as the result of the termination of options or the repurchase of shares issued under such plan, and (c) annual increases in the number of shares available for issuance on the first day of each year equal to the lesser of: | |||||||||||||||||
• | 3.25% of the outstanding shares of common stock on the first day of the fiscal year; | ||||||||||||||||
• | 825 shares; or | ||||||||||||||||
• | an amount the Company’s Board of Directors may determine. | ||||||||||||||||
On January 1, 2013 an additional 549 shares were authorized for issuance under the 2005 Plan, representing 3.25% of the outstanding shares on that date. As of December 31, 2013 there were 1,346 shares available for future grants under the plans. | |||||||||||||||||
Activity under the plans during 2013 was as follows: | |||||||||||||||||
Stock Options | Number of | Weighted | Weighted | Aggregate | |||||||||||||
Shares | Average | Average | Intrinsic | ||||||||||||||
Outstanding | Exercise | Remaining | Value | ||||||||||||||
Price | Contractual | ||||||||||||||||
Term | |||||||||||||||||
Outstanding at January 1, 2013 | 3,172 | $ | 8.81 | ||||||||||||||
Granted | 451 | 9.01 | |||||||||||||||
Cancelled or forfeited | (912 | ) | 10.34 | ||||||||||||||
Exercised | (288 | ) | 5.98 | ||||||||||||||
Outstanding at December 31, 2013 | 2,423 | $ | 8.61 | 6.47 | $ | 24,403 | |||||||||||
Vested and expected to vest | 2,302 | $ | 8.66 | 6.34 | $ | 23,082 | |||||||||||
Exercisable at December 31, 2013 | 1,363 | $ | 9.07 | 4.59 | $ | 13,102 | |||||||||||
Restricted Stock | Number of | Weighted | |||||||||||||||
Shares | Average | ||||||||||||||||
Outstanding | Grant Date | ||||||||||||||||
Fair Value | |||||||||||||||||
Outstanding at January 1, 2013 | 504 | $ | 7.93 | ||||||||||||||
Awarded | 55 | 9.35 | |||||||||||||||
Forfeited | (184 | ) | 8.2 | ||||||||||||||
Released | (127 | ) | 8.49 | ||||||||||||||
Outstanding at December 31, 2013 | 248 | $ | 7.75 | ||||||||||||||
Activity under the plans during 2012 was as follows: | |||||||||||||||||
Stock Options | Number of | Weighted | Weighted | Aggregate | |||||||||||||
Shares | Average | Average | Intrinsic | ||||||||||||||
Outstanding | Exercise | Remaining | Value | ||||||||||||||
Price | Contractual | ||||||||||||||||
Term | |||||||||||||||||
Outstanding at January 1, 2012 | 2,536 | $ | 9 | ||||||||||||||
Granted | 972 | 7.15 | |||||||||||||||
Cancelled or forfeited | (109 | ) | 10.62 | ||||||||||||||
Exercised | (227 | ) | 2.9 | ||||||||||||||
Outstanding at December 31, 2012 | 3,172 | $ | 8.81 | 5.19 | $ | 1,479 | |||||||||||
Vested and expected to vest | 3,071 | $ | 8.86 | 5.06 | $ | 1,433 | |||||||||||
Exercisable at December 31, 2012 | 1,966 | $ | 9.58 | 3.2 | $ | 971 | |||||||||||
Restricted Stock | Number of | Weighted | |||||||||||||||
Shares | Average | ||||||||||||||||
Outstanding | Grant Date | ||||||||||||||||
Fair Value | |||||||||||||||||
Outstanding at January 1, 2012 | 403 | $ | 7.68 | ||||||||||||||
Awarded | 293 | 7.69 | |||||||||||||||
Forfeited | (49 | ) | 8.36 | ||||||||||||||
Released | (143 | ) | 6.61 | ||||||||||||||
Outstanding at December 31, 2012 | 504 | $ | 7.93 | ||||||||||||||
The total intrinsic value of options exercised during the years ended December 31, 2013, 2012 and 2011 was $951, $1,338 and $3,403, respectively. As a result of the Company’s tax position, no tax benefit was recognized related to the stock option exercises. For 2013, 2012 and 2011, $1,718, $659 and $1,588, respectively, in cash proceeds were included in the Company’s Consolidated Statements of Cash Flows as a result of the exercise of stock options. The total fair value of performance shares vested during 2013, 2012 and 2011 was $0, $99 and $1,243, respectively. The total fair value of restricted stock vested during 2013, 2012 and 2011 was $1,442, $1,292 and $1,457, respectively. | |||||||||||||||||
The exercise price per share of each option is equal to the fair market value of the underlying share on the date of grant. The Company issues registered shares of common stock to satisfy stock option exercises and restricted stock grants. | |||||||||||||||||
The Company recognized expense related to stock options and restricted stock for 2013, 2012, and 2011 of $2,489, $3,211 and $2,617, respectively. As of December 31, 2013 there was $8,935 of unrecognized compensation costs related to non-vested stock option and restricted stock arrangements ($6,035 relating to stock options and $2,900 relating to restricted stock). This cost is expected to be recognized over a weighted-average period of 2.8 years for stock options and 2.7 years for restricted stock. | |||||||||||||||||
The Company awarded 225 performance options to its new President and CEO when he joined the Company in November 2012. The options expire ten years from the date of grant and vest in increments of 25 shares when the volume adjusted weighted average closing price of the common stock of the Company as reported by NASDAQ (or any other exchange on which the common stock of the Company is listed) for 30 consecutive days equals or exceeds each of $10.00 per share, $12.50 per share, $15.00 per share, $17.50 per share, $20.00 per share, $25.00 per share, $30.00 per share, $35.00 per share and $40.00 per share. In accordance with FASB ASC 718, a Monte Carlo simulation was performed to estimate the fair values, vesting terms and vesting probabilities for each tranche of options. Expense calculated using these estimates is being recorded over the estimated vesting terms. The Company recognized expense of $272 and $36 related to the performance options in 2013 and 2012, respectively. As of December 31, 2013 there was $360 of unrecognized compensation costs related to non-vested performance options. This cost is expected to be recognized over a weighted-average period of 2.26 to 4.05 years. All 225 performance options were outstanding as of December 31, 2013. The $10.00 and $12.50 market conditions were met as of December 31, 2013; therefore, 50 of the performance options were exercisable. | |||||||||||||||||
In conjunction with the departure of the Company’s Chief Financial Officer on April 30, 2012, the Company extended the vesting terms of the share-based compensation of this former employee. This extension resulted in a modification per FASB ASC 718. As such, the Company recorded $396 in incremental compensation expense during the second quarter of 2012. | |||||||||||||||||
In conjunction with the departure of the Company’s Chief Executive Officer on September 30, 2012, the Company extended the vesting terms of the share-based compensation of this former employee. This extension resulted in a modification per FASB ASC 718. As such, the Company recorded $522 in incremental compensation expense during the third quarter of 2012. | |||||||||||||||||
The Company historically issued performance shares to certain employees and consultants to incent and reward them for the achievement of specified performance over various service periods. The participants received awards for a specified number of shares of the Company’s common stock at the beginning of the award period, which entitled the participants to the shares at the end of the award period if achievement of the specified metrics and service requirements occurred. The Company released 0 and 10 performance shares (gross) during 2013 and 2012, respectively, related to the participants’ achievement of certain specified metrics. In accordance with FASB ASC 718, the Company estimated the number of shares to be issued based upon the probability that the performance metric and service period would be achieved. The fair value of the estimated award, based on the market value of the Company’s stock on the date of award, was expensed over the award period. The probability of meeting the specified metrics was reviewed quarterly. During 2013, 2012 and 2011 the Company recognized expense related to the performance shares of $0, $0 and $40 respectively. As of December 31, 2013, there was no unrecognized compensation cost related to non-vested share-based compensation arrangements associated with performance shares. | |||||||||||||||||
Employee Stock Purchase Plan (ESPP) | |||||||||||||||||
During the second quarter of 2008 the Company established its 2008 Employee Stock Purchase Plan (“ESPP”) which is available to eligible employees as defined in the ESPP. Under the ESPP, shares of the Company’s common stock may be purchased at a discount (currently 15%) of the lesser of the closing price of the Company’s common stock on the first trading day or the last trading day of the offering period. The offering period (currently six months) and the offering price are subject to change. Participants may not purchase more than $25 of the Company’s common stock in a calendar year and, effective January 1, 2009, may not purchase more than 1.5 shares during an offering period. Beginning on January 1, 2009 and on the first day of each fiscal year thereafter during the term of the ESPP, the number of shares available for sale under the ESPP shall be increased by the lesser of (i) two percent (2%) of the Company’s outstanding shares of common stock as of the close of business on the last business day of the prior calendar year, not to exceed 600 shares, or (ii) a lesser amount determined by the Board of Directors. At December 31, 2013, there were 663 shares available for future issuance under the ESPP. Share-based compensation expense with respect to the ESPP was $319, $257 and $273 for 2013, 2012, and 2011, respectively. | |||||||||||||||||
Valuation and Expense Information Under FASB ASC 718 | |||||||||||||||||
The following table summarizes share-based compensation expense related to employee share-based compensation under FASB ASC 718 for 2013, 2012 and 2011. This expense was allocated as follows: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Cost of revenue | $ | 246 | $ | 272 | $ | 161 | |||||||||||
Research and development expenses | 230 | 267 | 474 | ||||||||||||||
Selling, general and administrative expenses | 2,604 | 2,929 | 2,296 | ||||||||||||||
Total | $ | 3,080 | $ | 3,468 | $ | 2,931 | |||||||||||
In calculating compensation expense, the fair value of the options is estimated on the grant date using the Black-Scholes model including the following assumptions: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Risk-free interest rate | 0.75 - 2.29% | 0.65 - 1.37% | 1.59 - 2.78% | ||||||||||||||
Expected life of option (years) | 5.31 to 7.38 | 5.38 to 7.14 | 6.00 to 6.25 | ||||||||||||||
Expected volatility of stock | 69.00% | 69.00 - 71.00% | 71.00 - 72.00% | ||||||||||||||
Weighted-average volatility | 69.00% | 69.50% | 71.58% | ||||||||||||||
Dividend yield | 0.00% | 0.00% | 0.00% | ||||||||||||||
The Company’s estimate of volatility is based solely on the Company’s trading history. The risk-free interest rate assumption is based upon the U.S. treasury yield curve at the time of grant for the expected option life. The simplified method was utilized in determining the expected life of options prior to January 1, 2012. Since January 1, 2012 the Company has estimated the expected terms of options using historical employee exercise behavior adjusted for abnormal activity. | |||||||||||||||||
The fair value of restricted stock awards is based on the market value of the Company’s stock on the date of the awards. | |||||||||||||||||
Based on the assumptions noted above, the weighted average estimated grant date fair value per share of the stock options and restricted stock granted for 2013, 2012 and 2011 was as follows: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Stock options | $ | 5.7 | $ | 4.65 | $ | 8.01 | |||||||||||
Restricted stock | 9.35 | 7.69 | 11.61 | ||||||||||||||
In calculating compensation expense for performance options, the fair value of the options is estimated on the grant date using a Monte Carlo simulation including the following assumptions: | |||||||||||||||||
Strike price | $ | 5.91 | |||||||||||||||
Contractual term | 10 | ||||||||||||||||
Expected volatility of stock | 69.6 | % | |||||||||||||||
Expected rate of return | 1.75 | % | |||||||||||||||
Dividend yield | 0 | % | |||||||||||||||
The estimated contractual term is estimated considering that the performance options were issued to a high ranking executive of the Company and that they will be held until expiration. Expected volatility is estimated based on the Company’s trading history. The expected rate of return assumption is based upon the U.S. treasury yield curve at the time of grant for the expected option life. | |||||||||||||||||
Based on the assumptions noted above, the estimated grant date fair value per share of the performance options granted in 2012 was as follows: | |||||||||||||||||
Price Target | Fair Value | ||||||||||||||||
Tranche 1 | $ | 10 | $ | 4.32 | |||||||||||||
Tranche 2 | 12.5 | 4.3 | |||||||||||||||
Tranche 3 | 15 | 4.27 | |||||||||||||||
Tranche 4 | 17.5 | 4.23 | |||||||||||||||
Tranche 5 | 20 | 4.19 | |||||||||||||||
Tranche 6 | 25 | 4.1 | |||||||||||||||
Tranche 7 | 30 | 4.01 | |||||||||||||||
Tranche 8 | 35 | 3.92 | |||||||||||||||
Tranche 9 | 40 | 3.83 | |||||||||||||||
Non-Employee Stock Compensation | |||||||||||||||||
The Company has issued nonstatutory common stock options to consultants to purchase shares of common stock as a form of compensation for services provided to the Company. Such options vest over a service period ranging from immediately to four years. After January 1, 2006 all stock options to non-employee consultants have a four year vesting period and vest at a rate of 25% on the first anniversary date of the grant and ratably each month thereafter. | |||||||||||||||||
The Company accounts for the options granted to non-employees prior to their vesting date in accordance with ASC 505-50, Equity-Based Payments to Non-Employees. Because these options do not contain specific performance provisions, there is no measurement date of fair value until the options vest. Therefore, the fair value of the options granted and outstanding prior to their vesting date is remeasured each reporting period. The fair value was determined using the Black-Scholes model. There were no non-employee stock options granted during 2013 and 2012. The values attributable to the non-vested portion of the non-employee stock options have been amortized over the service period on a graded vesting method and the vested portion of these stock options was remeasured at each vesting date. Stock compensation expense with respect to unvested non-employee stock options totaled $0, $0 and $8 for 2013, 2012 and 2011, respectively. | |||||||||||||||||
Once these non-employee stock option grants have fully vested, the awards no longer fall within the scope of ASC 505-50. Because the stock options require settlement by the Company’s delivery of registered shares and because the tax withholding provisions in the awards allow the stock options to be partially net-cash settled, these vested stock options are no longer eligible for equity classification and are, thus, accounted for as derivative liabilities under FASB ASC 815 until the stock options are ultimately either exercised or forfeited. Accordingly, the vested non-employee stock options are classified as liabilities and remeasured at fair value through earnings at each reporting period. During 2013, 2012 and 2011, $(272), $179 and $23, respectively, of (expense) income was recorded as a result of the remeasurement of the fair value of these stock options. As of December 31, 2013 and 2012, fully vested stock options to acquire 38 shares of common stock held by non-employee consultants remained unexercised and a liability of $350 and $78 was included in accrued liabilities in the Consolidated Balance Sheets as of December 31, 2013 and 2012, respectively. |
SEGMENT_AND_GEOGRAPHIC_INFORMA
SEGMENT AND GEOGRAPHIC INFORMATION | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
SEGMENT AND GEOGRAPHIC INFORMATION | ' | ||||||||||||
16. SEGMENT AND GEOGRAPHIC INFORMATION | |||||||||||||
The Company considers reporting segments in accordance with FASB ASC 280, “Segment Reporting.” The Company develops, manufactures, and sells devices designed primarily for the surgical ablation of cardiac tissue for the treatment of atrial fibrillation and systems designed for the exclusion of the left atrial appendage. These devices are developed and marketed to a broad base of medical centers in the United States and internationally. Management considers all such sales to be part of a single reportable segment. | |||||||||||||
Domestic revenue by product type was as follows: | |||||||||||||
Revenue: | 2013 | 2012 | 2011 | ||||||||||
Open-heart | $ | 37,843 | $ | 32,880 | $ | 29,202 | |||||||
Minimally invasive | 13,648 | 12,733 | 14,166 | ||||||||||
AtriClip | 10,820 | 7,003 | 5,563 | ||||||||||
Total domestic | $ | 62,311 | $ | 52,616 | $ | 48,931 | |||||||
International revenue by product type was as follows: | |||||||||||||
Revenue: | 2013 | 2012 | 2011 | ||||||||||
Open-heart | $ | 13,064 | $ | 11,972 | $ | 11,205 | |||||||
Minimally invasive | 5,354 | 4,813 | 3,824 | ||||||||||
AtriClip | 1,160 | 846 | 442 | ||||||||||
Total international | $ | 19,578 | $ | 17,631 | $ | 15,471 | |||||||
Revenue by geographic area was as follows: | |||||||||||||
Revenue: | 2013 | 2012 | 2011 | ||||||||||
United States | $ | 62,311 | $ | 52,616 | $ | 48,931 | |||||||
Europe | 11,384 | 10,344 | 8,706 | ||||||||||
Asia | 7,665 | 6,730 | 6,254 | ||||||||||
Other international | 529 | 557 | 511 | ||||||||||
Total revenue | $ | 81,889 | $ | 70,247 | $ | 64,402 | |||||||
The majority of the Company’s long-lived assets are located in the United States. |
SELECTED_QUARTERLY_FINANCIAL_D
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | ' | ||||||||||||||||||||||||||||||||
17. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | |||||||||||||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||
Operating Results: | |||||||||||||||||||||||||||||||||
Revenue | $ | 19,430 | $ | 17,476 | $ | 20,429 | $ | 18,268 | $ | 20,146 | $ | 16,139 | $ | 21,884 | $ | 18,364 | |||||||||||||||||
Gross profit | 14,086 | 12,752 | 15,123 | 12,711 | 14,685 | 11,549 | 15,669 | 13,002 | |||||||||||||||||||||||||
Loss from operations | (1,800 | ) | (1,496 | ) | (1,639 | ) | (1,320 | ) | (2,614 | ) | (2,529 | ) | (4,838 | ) | (1,852 | ) | |||||||||||||||||
Net loss | (1,943 | ) | (1,620 | ) | (1,791 | ) | (1,326 | ) | (2,748 | ) | (2,567 | ) | (4,980 | ) | (2,020 | ) | |||||||||||||||||
Net loss per share (basic and diluted) | $ | (0.10 | ) | $ | (0.10 | ) | $ | (0.09 | ) | $ | (0.08 | ) | $ | (0.13 | ) | $ | (0.16 | ) | $ | (0.24 | ) | $ | (0.12 | ) | |||||||||
Amounts may not sum to consolidated totals for the full year due to rounding. Basic and diluted net loss per share is computed independently for each of the quarters presented. Therefore, the sum of the quarterly per share amounts will not necessarily equal the total for the year. |
SUBSEQUENT_EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
SUBSEQUENT EVENT | ' |
18. SUBSEQUENT EVENT | |
In February 2014 the Company completed a public offering of common stock under its January 2014 shelf registration. The Company sold 3,661 shares of common stock, par value $0.001 per share, at a price of $19.25 per share to generate proceeds of $65,937 after expenses. Offering costs were recorded in additional paid in capital to offset proceeds. |
VALUATION_AND_QUALIFYING_ACCOU
VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Valuation And Qualifying Accounts [Abstract] | ' | ||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | ' | ||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||
Beginning | Additions | Deductions | Ending | ||||||||||||||
Balance | Balance | ||||||||||||||||
Allowance for doubtful accounts receivable | |||||||||||||||||
Year ended December 31, 2013 | $ | 49 | $ | 100 | $ | 55 | $ | 94 | |||||||||
Year ended December 31, 2012 | 37 | 75 | 63 | 49 | |||||||||||||
Year ended December 31, 2011 | 9 | 29 | 1 | 37 | |||||||||||||
Reserve for sales returns and allowances | |||||||||||||||||
Year ended December 31, 2013 | $ | 105 | $ | — | $ | — | $ | 105 | |||||||||
Year ended December 31, 2012 | 40 | 262 | 197 | 105 | |||||||||||||
Year ended December 31, 2011 | 53 | 52 | 65 | 40 | |||||||||||||
Allowance for inventory valuation | |||||||||||||||||
Year ended December 31, 2013 | $ | 267 | $ | 921 | $ | 406 | $ | 782 | |||||||||
Year ended December 31, 2012 | 206 | 381 | 320 | 267 | |||||||||||||
Year ended December 31, 2011 | 32 | 311 | 137 | 206 | |||||||||||||
Valuation allowance for deferred tax assets | |||||||||||||||||
Year ended December 31, 2013 | $ | 31,685 | $ | 22,526 | $ | — | $ | 54,211 | |||||||||
Year ended December 31, 2012 | 29,316 | 2,369 | — | 31,685 | |||||||||||||
Year ended December 31, 2011 | 27,312 | 2,004 | — | 29,316 |
DESCRIPTION_OF_BUSINESS_AND_SU1
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Nature of the Business | ' | ||||||||||||
Nature of the Business—AtriCure, Inc. (the “Company” or “AtriCure”) was incorporated in the State of Delaware on October 31, 2000. The Company is a leading atrial fibrillation (“Afib”) solutions partner providing innovative products, professional education and support for clinical science to reduce the economic and social burden of Afib. The Company sells its products to hospitals globally through a direct sales force and distributors. | |||||||||||||
Principles of Consolidation | ' | ||||||||||||
Principles of Consolidation—The Consolidated Financial Statements include the accounts of the Company, AtriCure, LLC, the Company’s wholly-owned subsidiary organized in the State of Delaware, Endoscopic Technologies, LLC (“Estech”), the Company’s wholly-owned subsidiary organized in the State of Delaware and AtriCure Europe B.V. (“AtriCure Europe”), the Company’s wholly-owned subsidiary incorporated in the Netherlands. All intercompany accounts and transactions have been eliminated in consolidation. | |||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||
Cash and Cash Equivalents—The Company considers highly liquid investments with maturities of three months or less at the date of acquisition as cash equivalents in the accompanying Consolidated Financial Statements. | |||||||||||||
Investments | ' | ||||||||||||
Investments—The Company places its investments primarily in U.S. Government agencies and securities, corporate bonds and commercial paper. The Company classifies all investments as available-for-sale. Investments with maturities of less than one year are classified as short-term investments. Investments are recorded at fair value, with unrealized gains and losses recorded as accumulated other comprehensive income (loss). The Company recognizes gains and losses when these securities are sold using the specific identification method and includes them in interest income or expense in the Consolidated Statements of Operations. | |||||||||||||
Revenue Recognition | ' | ||||||||||||
Revenue Recognition—The Company accounts for revenue in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 605, “Revenue Recognition” (“ASC 605”). The Company determines the timing of revenue recognition based upon factors such as passage of title, installation, payment terms and ability to return products. The Company recognizes revenue when all of the following criteria are met: (i) there is persuasive evidence that an arrangement exists; (ii) delivery of the products and/or services has occurred; (iii) the selling price is fixed or determinable; and (iv) collectability is reasonably assured. | |||||||||||||
Pursuant to the Company’s standard terms of sale, revenue is recognized when title to the goods and risk of loss transfers to customers and there are no remaining obligations that will affect the customers’ final acceptance of the sale. Generally, the Company’s standard terms of sale define the transfer of title and risk of loss to occur upon shipment to the respective customer. The Company generally does not maintain any post-shipping obligations to the recipients of the products. No installation, calibration or testing of this equipment is performed by the Company subsequent to shipment to the customer in order to render it operational. | |||||||||||||
Product revenue includes shipping and handling revenue of $786, $723 and $664 in 2013, 2012 and 2011, respectively. Cost of freight for shipments made to customers is included in cost of revenue. Sales and other value-added taxes collected from customers and remitted to governmental authorities are excluded from revenue. The Company sells its products primarily through a direct sales force and through AtriCure Europe B.V. Terms of sale are generally consistent for both end-users and distributors except that payment terms are generally net 30 days for end-users and net 60 days for distributors. | |||||||||||||
Sales Returns and Allowances | ' | ||||||||||||
Sales Returns and Allowances—The Company maintains a provision for sales returns and allowances to account for potential returns of defective or damaged products, products shipped in error and price adjustments. The Company estimates such provision quarterly based primarily on a specific identification basis, in addition to estimating a general reserve. Increases to the provision result in a reduction of revenue. The provision is included in accrued liabilities in the Consolidated Balance Sheets. | |||||||||||||
Allowance for Uncollectible Accounts Receivable | ' | ||||||||||||
Allowance for Uncollectible Accounts Receivable—The Company evaluates the collectability of accounts receivable in order to determine the appropriate reserve for doubtful accounts. In determining the amount of the reserve, the Company considers aging of account balances, historical credit losses, customer-specific information and other relevant factors. An increase to the allowance for doubtful accounts results in a corresponding increase in expense. The Company reviews accounts receivable and adjusts the allowance based on current circumstances and charges off uncollectible receivables against the allowance when all attempts to collect the receivable have failed. The Company’s history of write-offs against the allowance has not been significant. | |||||||||||||
Inventories | ' | ||||||||||||
Inventories—Inventories are stated at the lower of cost or market using the first-in, first-out cost method (“FIFO”) and consist of raw materials, work in process and finished goods. The Company’s industry is characterized by rapid product development and frequent new product introductions. Uncertain timing of product approvals, variability in product launch strategies and variation in product utilization all impact excess and obsolete inventory. An inventory reserve based on product usage is estimated and recorded quarterly for excess, slow moving and obsolete inventory as well as for inventory with a carrying value in excess of its net realizable value. Write-offs are recorded when a product is destroyed. The Company’s history of write-offs against the reserve has not been significant. | |||||||||||||
Property and Equipment | ' | ||||||||||||
Property and Equipment—Property and equipment is stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method of depreciation for financial reporting purposes and applied over the estimated useful lives of the assets. The estimated useful life by major asset category is the following: machinery and equipment is three to seven years, computer and other office equipment is three years, furniture and fixtures is three to seven years and leasehold improvements and equipment leased under a capital lease are the shorter of their useful life or remaining lease term. The Company reassesses useful lives of property and equipment annually, and assets are retired if they are no longer being used. Maintenance and repair costs are expensed as incurred. | |||||||||||||
Included in property and equipment are generators and other capital equipment (such as the Company’s switchbox units and cryosurgical consoles) that are loaned at no cost to direct customers that use the Company’s disposable products. These generators are depreciated over a period of one to three years, which approximates their useful lives, and such depreciation is included in cost of revenue. The estimated useful lives of this equipment are based on anticipated usage by our customers and the timing and impact of expected new technology rollouts by the Company. To the extent the Company experiences changes in the usage of this equipment or introductions of new technologies, the estimated useful lives of this equipment may change in a future period. Depreciation related to these generators was $1,251, $1,081 and $1,294 in 2013, 2012 and 2011, respectively. As of December 31, 2013 and 2012, the net carrying amount of loaned equipment included in net property and equipment in the Consolidated Balance Sheets was $3,173 and $2,197, respectively. | |||||||||||||
Impairment of Long-Lived Assets | ' | ||||||||||||
Impairment of Long-Lived Assets—The Company reviews property and equipment for impairment using its best estimates based on reasonable and supportable assumptions and projections. | |||||||||||||
Intangible Assets | ' | ||||||||||||
Intangible Assets—Intangible assets with determinable useful lives are amortized on a straight-line basis over the estimated periods benefited. | |||||||||||||
Goodwill | ' | ||||||||||||
Goodwill— Goodwill represents the excess of purchase price over the fair value of the net assets acquired in business combinations. We test goodwill for impairment annually on November 30, or more often if impairment indicators are present. ASC 350, “Intangibles—Goodwill and Other” (“ASC 350”) requires a two-step approach to determine any potential goodwill impairment. The first step (Step 1) requires a comparison of the carrying value of the reporting unit to its fair value. Goodwill is considered potentially impaired if the carrying value of the reporting unit is greater than the estimated fair value. If potential impairment exists based upon completion of Step 1, Step 2 must be completed, which compares the implied fair value of a reporting unit’s goodwill to its carrying value. Step 2 involves an analysis allocating the fair value determined in Step 1 (as if it was the purchase price in a business combination). If the calculated fair value of the goodwill resulting from this allocation is lower than the carrying value of the goodwill of the reporting unit, an impairment loss is recorded. As a result, the value of the assets could be significantly reduced, which would increase operating expenses and reduce net income for the period in which the charge occurs. | |||||||||||||
Other Income | ' | ||||||||||||
Other Income—Other income consists primarily of foreign currency transaction gains and losses, grant income and non-employee option gains and losses related to the fair market value change for fully vested options outstanding for consultants which are accounted for as free-standing derivatives. The Company recorded foreign currency transaction gains (losses) of $269, ($83) and $30 for the years ended December 31, 2013, 2012 and 2011, respectively, in connection with settlements of its intercompany balance with AtriCure Europe. | |||||||||||||
The Company periodically is awarded grants to support research and development activities. The Company recognizes grant income when the funds are earned. The Company recorded grant income of $0, $409 and $52 during 2013, 2012 and 2011, respectively. | |||||||||||||
The Company historically issued stock options to non-employee consultants as a form of compensation for services provided to the Company. Because the non-employee options require settlement by the Company’s delivery of registered shares and because the tax withholding provisions in the awards allow the options to be partially net-cash settled, these options, when vested, are no longer eligible for equity classification and are, thus, subsequently accounted for as derivative liabilities under FASB ASC 815, “Derivatives and Hedging” (“ASC 815”) until the awards are ultimately either exercised or forfeited. Accordingly, the vested non-employee options are classified as liabilities and remeasured at fair value through earnings at each reporting period. During the years ended December 31, 2013, 2012 and 2011, $272, $(179) and $(23), respectively, of expense (income) was recorded as a result of the remeasurement of the fair value of these fully vested stock options. | |||||||||||||
Taxes | ' | ||||||||||||
Taxes—Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities from a change in tax rates is recognized in the period that includes the enactment date. | |||||||||||||
The Company’s estimate of the valuation allowance for deferred tax assets requires it to make significant estimates and judgments about its future operating results. Deferred tax assets are reduced by valuation allowances if, based on the consideration of all available evidence, it is more-likely-than-not that some portion of the deferred tax asset will not be realized. Significant weight is given to evidence that can be objectively verified. The Company evaluates deferred tax assets on a quarterly basis to determine if valuation allowances are required by considering available evidence. Deferred tax assets are realized by having sufficient future taxable income to allow the related tax benefits to reduce taxes otherwise payable. The sources of taxable income that may be available to realize the benefit of deferred tax assets are future reversals of existing taxable temporary differences, future taxable income, exclusive of reversing temporary differences and carryforwards, taxable income in carry-back years and tax planning strategies that are both prudent and feasible. In evaluating whether to record a valuation allowance, the applicable accounting standards deem that the existence of cumulative losses in recent years is a significant piece of objectively verifiable negative evidence that must be overcome by objectively verifiable positive evidence to avoid the need to record a valuation allowance. The Company has recorded a full valuation allowance against its net deferred tax assets as it is more likely than not that the benefit of the deferred tax assets will not be recognized in future periods. | |||||||||||||
A provision of The Patient Protection and Affordable Care Act enacted in 2010, as amended, (the “Affordable Care Act”) requires manufacturers of medical devices to pay an excise tax on all U.S. medical device sales beginning in January 2013. The Company’s expense related to the medical device excise tax, which was recorded in cost of revenue, was $417 during 2013. | |||||||||||||
Net Loss Per Share | ' | ||||||||||||
Net Loss Per Share—Basic and diluted net loss per share is computed in accordance with FASB ASC 260 “Earnings Per Share” (“ASC 260”) by dividing the net loss by the weighted average number of common shares outstanding during the period. Since the Company has experienced net losses for all periods presented, net loss per share excludes the effect of 2,721, 3,676 and 2,949 stock options, restricted stock and performance-based shares as of December 31, 2013, 2012, and 2011, respectively, because they are anti-dilutive. Therefore, the number of shares calculated for basic net loss per share is also used for the diluted net loss per share calculation. | |||||||||||||
Comprehensive Loss and Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||
Comprehensive Loss and Accumulated Other Comprehensive Income (Loss)—In addition to net loss, comprehensive loss includes foreign currency exchange rate adjustments and unrealized gains and losses on investments. | |||||||||||||
Accumulated other comprehensive income (loss) consisted of the following: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Total accumulated other comprehensive income (loss) at beginning of period | $ | 77 | $ | (37 | ) | $ | 80 | ||||||
Unrealized gains on investments | |||||||||||||
Balance at beginning of period | $ | 1 | $ | 2 | $ | — | |||||||
Other comprehensive (loss) income before reclassifications | (7 | ) | (1 | ) | 2 | ||||||||
Amounts reclassified from accumulated other comprehensive income to other income on the statement of operations | — | — | — | ||||||||||
Balance at end of period | $ | (6 | ) | $ | 1 | $ | 2 | ||||||
Foreign currency translation adjustment | |||||||||||||
Balance at beginning of period | $ | 76 | $ | (39 | ) | $ | 80 | ||||||
Other comprehensive (loss) income before reclassifications | (478 | ) | 198 | (149 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income to other income on the statement of operations | 269 | (83 | ) | 30 | |||||||||
Balance at end of period | $ | (133 | ) | $ | 76 | $ | (39 | ) | |||||
Total accumulated other comprehensive (loss) income at end of period | |||||||||||||
Research and Development Costs | ' | ||||||||||||
Research and Development Costs—Research and development costs are expensed as incurred. These costs include compensation and other internal and external costs associated with the development and research related to new products or concepts, preclinical studies, clinical trials and cost of products used in trials and tests. | |||||||||||||
Share-Based Employee Compensation | ' | ||||||||||||
Share-Based Employee Compensation—The Company follows FASB ASC 718 “Compensation-Stock Compensation” (“ASC 718”), to record share-based compensation for all employee share-based payment awards, including stock options, restricted stock, performance shares and stock purchases related to an employee stock purchase plan, based on estimated fair values. The Company’s share-based compensation expense recognized under ASC 718 for the years ended December 31, 2013, 2012 and 2011 was $3,080, $3,468 and $2,931, respectively, on a before and after tax basis. | |||||||||||||
FASB ASC 718 requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the Company’s Consolidated Statement of Operations and Comprehensive Loss. The expense has been reduced for estimated forfeitures. FASB ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. | |||||||||||||
The Company estimates the fair value of options on the date of grant using the Black-Scholes option-pricing model (“Black-Scholes model”). The Company’s determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by the Company’s stock price, as well as assumptions regarding a number of highly complex and subjective variables. These variables include but are not limited to the Company’s expected stock price volatility over the term of the awards and actual and projected employee stock option exercise behaviors. For non-employee options, the fair value at the date of grant is subject to adjustment at each vesting date based upon the fair value of the Company’s common stock. The fair value of our market-based performance option grants is estimated at the date of grant using a Monte-Carlo simulation. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in our Consolidated Statement of Operations and Comprehensive Loss. The expense has been reduced for estimated forfeitures. | |||||||||||||
The Company estimates the fair value of restricted stock and performance share awards based upon the grant date closing market price of the Company’s common stock. The Company’s determination of fair value is affected by the Company’s stock price as well as assumptions regarding the number of shares expected to be granted. | |||||||||||||
The Company also has an employee stock purchase plan (“ESPP” or the “Plan”) which is available to all eligible employees as defined by the Plan. Under the ESPP, shares of the Company’s common stock may be purchased at a discount. The Company estimates the number of shares to be purchased under the Plan and records compensation expense based upon the fair value of the stock at the beginning of the purchase period using the Black-Scholes model. | |||||||||||||
The Company has historically issued stock options to non-employee consultants as a form of compensation for services provided to the Company. The Company accounts for the options granted to non-employees prior to their vesting date in accordance with ASC 505-50, “Equity-Based Payments to Non-Employees.” Because these options do not contain specific performance provisions, there is no measurement date of fair value until the options vest. Therefore, the fair value of the options granted and outstanding prior to their vesting date is remeasured each reporting period. | |||||||||||||
Fully vested options to acquire 38 shares of common stock held by non-employee consultants remained unexercised as of both December 31, 2013 and 2012. A liability of $350 and $78 was included in accrued liabilities in the Consolidated Balance Sheets as of December 31, 2013 and 2012, respectively. | |||||||||||||
Use of Estimates | ' | ||||||||||||
Use of Estimates—The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates. | |||||||||||||
Fair Value Disclosures | ' | ||||||||||||
Fair Value Disclosures—The book value of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, short-term investments, short and long-term other assets, accounts payable, accrued expenses, other liabilities and fixed interest rate debt, approximate their fair values. The Company classifies cash and short-term investments in U.S. government agencies and securities as Level 1 within the fair value hierarchy. Accounts receivable, short-term other assets, accounts payable and accrued expenses are also classified as Level 1. The carrying amounts of these assets and liabilities approximate their fair value due to their relatively short-term nature. Other assets and other liabilities are classified as Level 1 within the fair value hierarchy. Cash equivalents and short-term investments in commercial paper are classified as Level 2 within the fair value hierarchy (see Note 3 – “Fair Value” for further information). Fixed interest rate debt fair value is determined by calculating the net present value of future debt payments and is classified as Level 2. Significant unobservable inputs with respect to the fair value measurement of the Level 3 non-employee stock options are developed using Company data. When an input is changed, the Black-Scholes model is updated and the results are analyzed for reasonableness. | |||||||||||||
Segment Reporting | ' | ||||||||||||
The Company considers reporting segments in accordance with FASB ASC 280, “Segment Reporting.” The Company develops, manufactures, and sells devices designed primarily for the surgical ablation of cardiac tissue for the treatment of atrial fibrillation and systems designed for the exclusion of the left atrial appendage. These devices are developed and marketed to a broad base of medical centers in the United States and internationally. Management considers all such sales to be part of a single reportable segment. |
DESCRIPTION_OF_BUSINESS_AND_SU2
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||
Accumulated other comprehensive income (loss) consisted of the following: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Total accumulated other comprehensive income (loss) at beginning of period | $ | 77 | $ | (37 | ) | $ | 80 | ||||||
Unrealized gains on investments | |||||||||||||
Balance at beginning of period | $ | 1 | $ | 2 | $ | — | |||||||
Other comprehensive (loss) income before reclassifications | (7 | ) | (1 | ) | 2 | ||||||||
Amounts reclassified from accumulated other comprehensive income to other income on the statement of operations | — | — | — | ||||||||||
Balance at end of period | $ | (6 | ) | $ | 1 | $ | 2 | ||||||
Foreign currency translation adjustment | |||||||||||||
Balance at beginning of period | $ | 76 | $ | (39 | ) | $ | 80 | ||||||
Other comprehensive (loss) income before reclassifications | (478 | ) | 198 | (149 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income to other income on the statement of operations | 269 | (83 | ) | 30 | |||||||||
Balance at end of period | $ | (133 | ) | $ | 76 | $ | (39 | ) | |||||
Total accumulated other comprehensive (loss) income at end of period | $ | (139 | ) | $ | 77 | $ | (37 | ) | |||||
FAIR_VALUE_Tables
FAIR VALUE (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | ' | ||||||||||||||||
In accordance with ASC 820, the following table represents the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2013: | |||||||||||||||||
Quoted Prices in | Significant Other | Significant Other | Total | ||||||||||||||
Active Markets for | Observable Inputs | Unobservable | |||||||||||||||
Identical Assets | (Level 2) | Inputs | |||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||
Assets: | |||||||||||||||||
Money market funds | $ | — | $ | 4,295 | $ | — | $ | 4,295 | |||||||||
Commercial paper | — | 2,598 | — | 2,598 | |||||||||||||
U.S. government agencies and securities | 4,145 | — | — | 4,145 | |||||||||||||
Corporate bonds | — | 12,490 | — | 12,490 | |||||||||||||
Total assets | $ | 4,145 | $ | 19,383 | $ | — | $ | 23,528 | |||||||||
Liabilities: | |||||||||||||||||
Derivative instruments | $ | — | $ | — | $ | 350 | $ | 350 | |||||||||
Acquisition-related contingent consideration | — | — | 8,032 | 8,032 | |||||||||||||
Total liabilities | $ | — | $ | — | $ | 8,382 | $ | 8,382 | |||||||||
In accordance with ASC 820, the following table represents the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2012: | |||||||||||||||||
Quoted Prices in | Significant Other | Significant Other | Total | ||||||||||||||
Active Markets for | Observable Inputs | Unobservable | |||||||||||||||
Identical Assets | (Level 2) | Inputs | |||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||
Assets: | |||||||||||||||||
Money market funds | $ | — | $ | 5,261 | $ | — | $ | 5,261 | |||||||||
Commercial paper | — | 3,247 | — | 3,247 | |||||||||||||
U.S. government agencies and securities | 1,000 | — | — | 1,000 | |||||||||||||
Corporate bonds | — | — | — | — | |||||||||||||
Total assets | $ | 1,000 | $ | 8,508 | $ | — | $ | 9,508 | |||||||||
Liabilities: | |||||||||||||||||
Derivative instruments | $ | — | $ | — | $ | 78 | $ | 78 | |||||||||
Total liabilities | $ | — | $ | — | $ | 78 | $ | 78 | |||||||||
Assumptions Used for Estimating Fair Value of Level 3 Derivative Instruments | ' | ||||||||||||||||
The fair value of the Level 3 derivative instruments is estimated using the Black-Scholes model including the following assumptions: | |||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | ||||||||||||||||
Risk-free interest rate | 0.11% - 1.32% | 0.23% - 0.74% | |||||||||||||||
Expected life of option (years) | 0.75 - 4.10 | 1.75 - 5.10 | |||||||||||||||
Expected volatility of stock | 70.00% | 70.00% | |||||||||||||||
Dividend yield | 0.00% | 0.00% | |||||||||||||||
Level 3 Fair Value Measurements Using Significant Other Unobservable Inputs for Derivative Instruments | ' | ||||||||||||||||
The following table represents the company’s Level 3 fair value measurements using significant other unobservable inputs for derivative instruments as of December 31: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Beginning Balance – January 1 | $ | 78 | $ | 208 | $ | 268 | |||||||||||
Total gains/losses (realized/unrealized) included in earnings | 272 | (179 | ) | (23 | ) | ||||||||||||
Purchases (exercises) | — | (50 | ) | (55 | ) | ||||||||||||
Reclassification from equity to liability when fully vested | — | 99 | 18 | ||||||||||||||
Ending Balance – December 31 | $ | 350 | $ | 78 | $ | 208 | |||||||||||
(Losses) gains included in earnings (or changes in net assets attributable to the change in unrealized gains/losses relating to assets held at reporting date) | $ | (272 | ) | $ | 179 | $ | 23 | ||||||||||
Level 3 Fair Value Measurements Using Significant Other Unobservable Inputs for Acquisition Related Contingent Consideration | ' | ||||||||||||||||
The following table represents the company’s Level 3 fair value measurements using significant other unobservable inputs for acquisition-related contingent consideration as of December 31: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Beginning Balance – January 1 | $ | — | $ | — | $ | — | |||||||||||
Amounts acquired (sold) or issued (settled), net | 8,032 | — | — | ||||||||||||||
Transfers in and/or (out) of Level 3 | — | — | — | ||||||||||||||
Changes in fair value recorded in earnings | — | — | — | ||||||||||||||
Ending Balance – December 31 | $ | 8,032 | $ | — | $ | — |
INVESTMENTS_Tables
INVESTMENTS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Investments Debt And Equity Securities [Abstract] | ' | ||||||||||||
Summary of Short-term Investments | ' | ||||||||||||
Investments as of December 31, 2013 consisted of the following: | |||||||||||||
Cost Basis | Unrealized | Fair Value | |||||||||||
Gains (Losses) | |||||||||||||
Corporate bonds | $ | 12,498 | $ | (8 | ) | $ | 12,490 | ||||||
U.S. Government agencies and securities | 4,143 | 2 | 4,145 | ||||||||||
Commercial paper | 2,598 | 0 | 2,598 | ||||||||||
Total | $ | 19,239 | $ | (6 | ) | $ | 19,233 | ||||||
Short-term investments as of December 31, 2012 consisted of the following: | |||||||||||||
Cost Basis | Unrealized | Fair Value | |||||||||||
Gains | |||||||||||||
U.S. Government agencies and securities | $ | 999 | $ | 1 | $ | 1,000 | |||||||
Commercial paper | 3,247 | 0 | 3,247 | ||||||||||
Total | $ | 4,246 | $ | 1 | $ | 4,247 | |||||||
BUSINESS_COMBINATION_Tables
BUSINESS COMBINATION (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Business Combinations [Abstract] | ' | ||||||||
Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed | ' | ||||||||
The following table summarizes the estimated fair values of the assets acquired and liabilities assumed on the acquisition date: | |||||||||
December 31, | |||||||||
2013 | |||||||||
Cash and cash equivalents | $ | 3,708 | |||||||
Accounts receivable, net | 2,378 | ||||||||
Inventories | 2,156 | ||||||||
Other current assets | 271 | ||||||||
Property and equipment, net | 1,026 | ||||||||
Intangible assets, net | 10,279 | ||||||||
Other assets | 51 | ||||||||
Total identifiable assets | $ | 19,869 | |||||||
Accounts payable | $ | 1,761 | |||||||
Accrued liabilities | 5,742 | ||||||||
Total liabilities assumed | $ | 7,503 | |||||||
Net identifiable assets acquired | $ | 12,366 | |||||||
Goodwill | 35,386 | ||||||||
Total consideration | $ | 47,752 | |||||||
Valuation of Intangible Assets Acquired and Related Amortization Periods | ' | ||||||||
The valuation of the intangible assets acquired and related amortization periods are as follows: | |||||||||
Valuation | Amortization Term | ||||||||
(in years) | |||||||||
Fusion technology | $ | 9,242 | 10 | ||||||
Clamp and probe technology | 829 | 3 | |||||||
Estech trade name | 208 | 1 | |||||||
Total | $ | 10,279 | |||||||
Acquisition Related Costs | ' | ||||||||
These costs are included in selling, general and administrative expenses in the accompanying Consolidated Statements of Operations and Comprehensive Loss and are comprised of the following items: | |||||||||
Bank fees and expenses | $ | 509 | |||||||
Legal, audit, tax and other costs | 698 | ||||||||
Total | $ | 1,207 | |||||||
Pro-forma Acquisition Information | ' | ||||||||
The following supplemental pro forma information presents the financial results as if the acquisition of Estech had occurred on January 1, 2012 for the years ended December 31, 2013 and 2012. This supplemental pro forma information has been prepared for comparative purposes and does not purport to be indicative of what would have occurred had the acquisition been made on January 1, 2012, nor are they indicative of any future results. | |||||||||
Year Ended | |||||||||
December 31, (unaudited) | |||||||||
2013 | 2012 | ||||||||
Revenue | $ | 93,846 | $ | 81,954 | |||||
Net loss | (21,161 | ) | (19,031 | ) | |||||
Basic and diluted net loss per share | (0.91 | ) | (1.04 | ) |
INTANGIBLE_ASSETS_AND_GOODWILL1
INTANGIBLE ASSETS AND GOODWILL (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Summary of Company's Intangible Assets with Definite Lives | ' | ||||||||||||||||||||||||
The following table provides a summary of the Company’s intangible assets with definite lives: | |||||||||||||||||||||||||
Non-Compete | Cooper | Fusion | Clamp & | Estech Trade | Total | ||||||||||||||||||||
Agreement | Trade | Technology | Probe | Name | |||||||||||||||||||||
Name | Technology | ||||||||||||||||||||||||
Net carrying amount as of December 31, 2010 | $ | 57 | $ | 32 | $ | — | $ | — | $ | — | $ | 89 | |||||||||||||
Amortization | (12 | ) | (32 | ) | — | — | — | (44 | ) | ||||||||||||||||
Net carrying amount as of December 31, 2011 | 45 | — | — | — | — | 45 | |||||||||||||||||||
Amortization | (13 | ) | — | — | — | — | (13 | ) | |||||||||||||||||
Net carrying amount as of December 31, 2012 | 32 | — | — | — | — | 32 | |||||||||||||||||||
Amortization | (12 | ) | — | — | — | — | (12 | ) | |||||||||||||||||
Additions | — | — | 9,242 | 829 | 208 | 10,279 | |||||||||||||||||||
Net carrying amount as of December 31, 2013 | $ | 20 | $ | — | $ | 9,242 | $ | 829 | $ | 208 | $ | 10,299 | |||||||||||||
Future Amortization Expense Related to Intangible Assets with Definite Lives | ' | ||||||||||||||||||||||||
Future amortization expense related to intangible assets with definite lives is projected as follows: | |||||||||||||||||||||||||
Year | Amortization | ||||||||||||||||||||||||
2014 | $ | 1,421 | |||||||||||||||||||||||
2015 | 1,208 | ||||||||||||||||||||||||
2016 | 1,201 | ||||||||||||||||||||||||
2017 | 924 | ||||||||||||||||||||||||
2018 | 924 | ||||||||||||||||||||||||
2019 and thereafter | 4,621 | ||||||||||||||||||||||||
Total | $ | 10,299 | |||||||||||||||||||||||
Summary of Company's Goodwill | ' | ||||||||||||||||||||||||
The following table provides a summary of the Company’s goodwill: | |||||||||||||||||||||||||
Net carrying amount as of December 31, 2012 | $ | — | |||||||||||||||||||||||
Goodwill amount recorded | 35,386 | ||||||||||||||||||||||||
Net carrying amount as of December 31, 2013 | $ | 35,386 | |||||||||||||||||||||||
INVENTORIES_Tables
INVENTORIES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Summary of Inventories | ' | ||||||||
Inventories consisted of the following at December 31: | |||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 3,279 | $ | 3,066 | |||||
Work in process | 1,472 | 675 | |||||||
Finished goods | 5,463 | 1,977 | |||||||
Inventories | $ | 10,214 | $ | 5,718 | |||||
PROPERTY_AND_EQUIPMENT_Tables
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Summary of Property and Equipment | ' | ||||||||
Property and equipment consisted of the following at December 31: | |||||||||
2013 | 2012 | ||||||||
Machinery, equipment and vehicles | $ | 9,917 | $ | 7,489 | |||||
Computer and other office equipment | 1,522 | 1,538 | |||||||
Furniture and fixtures | 208 | 212 | |||||||
Leasehold improvements | 262 | 165 | |||||||
Equipment under capital leases | 153 | 226 | |||||||
Construction in progress | 411 | 68 | |||||||
Total | 12,473 | 9,698 | |||||||
Less accumulated depreciation | (6,830 | ) | (6,268 | ) | |||||
Property and equipment, net | $ | 5,643 | $ | 3,430 | |||||
ACCRUED_LIABILITIES_Tables
ACCRUED LIABILITIES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Payables And Accruals [Abstract] | ' | ||||||||
Accrued Liabilities | ' | ||||||||
Accrued liabilities consisted of the following at December 31: | |||||||||
2013 | 2012 | ||||||||
Accrued bonus | $ | 6,849 | $ | 487 | |||||
Accrued commissions | 3,827 | 1,464 | |||||||
Accrued settlement reserve (current portion) | 1,259 | 1,120 | |||||||
Other accrued liabilities | 1,105 | 458 | |||||||
Accrued taxes and value-added taxes payable | 907 | 366 | |||||||
Withheld payroll taxes | 546 | 151 | |||||||
Accrued vacation | 476 | 349 | |||||||
Accrued non-employee stock options | 350 | 78 | |||||||
Accrued royalty | 307 | 118 | |||||||
Accrued payroll | 233 | 153 | |||||||
Sales/returns allowance—trade | 105 | 105 | |||||||
Accrued 401(k) match | 84 | — | |||||||
Accrued severance | 22 | 224 | |||||||
Total | $ | 16,070 | $ | 5,073 | |||||
INDEBTEDNESS_Tables
INDEBTEDNESS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Long-Term Debt and Capital Leases | ' | ||||||||
Long-term debt and capital leases consisted of the following at December 31: | |||||||||
2013 | 2012 | ||||||||
Credit facility | $ | 6,333 | $ | 8,333 | |||||
Capital leases | 117 | 103 | |||||||
Total debt and capital leases | 6,450 | 8,436 | |||||||
Less: Current maturities | (2,038 | ) | (2,029 | ) | |||||
Total long-term debt and capital leases | $ | 4,412 | $ | 6,407 | |||||
Maturities on Debt, Including Capital Lease Obligations | ' | ||||||||
Maturities on debt, including capital lease obligations are as follows: | |||||||||
Year | Amount | ||||||||
2014 | $ | 2,038 | |||||||
2015 | 2,038 | ||||||||
2016 | 2,030 | ||||||||
2017 | 344 | ||||||||
Total | $ | 6,450 | |||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||
Future Minimum Lease Payments Under Non-cancellable Operating Leases | ' | ||||
Future minimum lease payments under non-cancelable operating leases are as follows: | |||||
Year | Amount | ||||
2014 | $ | 1,190 | |||
2015 | 456 | ||||
Total | $ | 1,646 | |||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Detail of Deferred Tax Assets and Liabilities | ' | ||||||||||||||||||||||||
The detail of deferred tax assets and liabilities at December 31 is as follows: | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Deferred tax assets (liabilities): | |||||||||||||||||||||||||
Net operating loss carryforward | $ | 46,362 | $ | 22,974 | |||||||||||||||||||||
Research and development credit carryforward | 4,425 | 3,603 | |||||||||||||||||||||||
Equity compensation | 2,477 | 4,082 | |||||||||||||||||||||||
Accruals and reserves | 1,007 | 269 | |||||||||||||||||||||||
Inventories | 290 | 228 | |||||||||||||||||||||||
Intangible assets | (186 | ) | 757 | ||||||||||||||||||||||
Property and equipment, net | (173 | ) | (230 | ) | |||||||||||||||||||||
Other, net | 9 | 2 | |||||||||||||||||||||||
Subtotal | 54,211 | 31,685 | |||||||||||||||||||||||
Less valuation allowance | (54,211 | ) | (31,685 | ) | |||||||||||||||||||||
Total | $ | — | $ | — | |||||||||||||||||||||
Company's Provision for Income Taxes | ' | ||||||||||||||||||||||||
The Company’s provision for income taxes is as follows: | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Current income tax expense | $ | 18 | $ | 50 | $ | 31 | |||||||||||||||||||
Deferred tax benefit | (3,728 | ) | (2,336 | ) | (2,005 | ) | |||||||||||||||||||
Increase in valuation allowance | 3,728 | 2,336 | 2,005 | ||||||||||||||||||||||
Total income tax expense | $ | 18 | $ | 50 | $ | 31 | |||||||||||||||||||
Difference Between Effective Income Tax Rates and Federal Statutory Rate | ' | ||||||||||||||||||||||||
The Company’s 2013, 2012 and 2011 effective income tax rates differ from the federal statutory rate as follows: | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Federal tax at statutory rate | 34 | % | $ | (3,891 | ) | 34 | % | $ | (2,483 | ) | 34 | % | $ | (1,844 | ) | ||||||||||
Federal R&D credit | 3.35 | (383 | ) | 0.08 | (6 | ) | 6.11 | (332 | ) | ||||||||||||||||
Valuation allowance | (29.63 | ) | 3,391 | (31.98 | ) | 2,336 | (37.09 | ) | 2,012 | ||||||||||||||||
State income taxes | 0.04 | (5 | ) | 0.67 | (49 | ) | 2.9 | (157 | ) | ||||||||||||||||
Foreign NOL rate change | 2.47 | (283 | ) | 1.4 | (102 | ) | — | — | |||||||||||||||||
Foreign tax rate differential | (1.60 | ) | 183 | (1.94 | ) | 142 | (1.49 | ) | 81 | ||||||||||||||||
Other | (8.79 | ) | 1,006 | (2.91 | ) | 212 | (5.00 | ) | 271 | ||||||||||||||||
Effective tax rate | (0.16 | )% | $ | 18 | (0.68 | )% | $ | 50 | (0.57 | )% | $ | 31 | |||||||||||||
Reconciliation of Change in Federal and State Unrecognized Tax Benefits | ' | ||||||||||||||||||||||||
A reconciliation of the change in federal and state unrecognized tax benefits for 2013, 2012, and 2011 is presented below: | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Balance at the beginning of the year | $ | — | $ | — | $ | — | |||||||||||||||||||
Increases (decreases) for prior year tax positions | 1,982 | — | — | ||||||||||||||||||||||
Increases (decreases) for current year tax positions | — | — | — | ||||||||||||||||||||||
Increases (decreases) related to settlements | — | — | — | ||||||||||||||||||||||
Decreases related to statute lapse | — | — | — | ||||||||||||||||||||||
Balance at the end of the year | $ | 1,982 | $ | — | $ | — |
EQUITY_COMPENSATION_PLANS_Tabl
EQUITY COMPENSATION PLANS (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Activity Under Stock Based Compensation Plans | ' | ||||||||||||||||
Activity under the plans during 2013 was as follows: | |||||||||||||||||
Stock Options | Number of | Weighted | Weighted | Aggregate | |||||||||||||
Shares | Average | Average | Intrinsic | ||||||||||||||
Outstanding | Exercise | Remaining | Value | ||||||||||||||
Price | Contractual | ||||||||||||||||
Term | |||||||||||||||||
Outstanding at January 1, 2013 | 3,172 | $ | 8.81 | ||||||||||||||
Granted | 451 | 9.01 | |||||||||||||||
Cancelled or forfeited | (912 | ) | 10.34 | ||||||||||||||
Exercised | (288 | ) | 5.98 | ||||||||||||||
Outstanding at December 31, 2013 | 2,423 | $ | 8.61 | 6.47 | $ | 24,403 | |||||||||||
Vested and expected to vest | 2,302 | $ | 8.66 | 6.34 | $ | 23,082 | |||||||||||
Exercisable at December 31, 2013 | 1,363 | $ | 9.07 | 4.59 | $ | 13,102 | |||||||||||
Restricted Stock | Number of | Weighted | |||||||||||||||
Shares | Average | ||||||||||||||||
Outstanding | Grant Date | ||||||||||||||||
Fair Value | |||||||||||||||||
Outstanding at January 1, 2013 | 504 | $ | 7.93 | ||||||||||||||
Awarded | 55 | 9.35 | |||||||||||||||
Forfeited | (184 | ) | 8.2 | ||||||||||||||
Released | (127 | ) | 8.49 | ||||||||||||||
Outstanding at December 31, 2013 | 248 | $ | 7.75 | ||||||||||||||
Activity under the plans during 2012 was as follows: | |||||||||||||||||
Stock Options | Number of | Weighted | Weighted | Aggregate | |||||||||||||
Shares | Average | Average | Intrinsic | ||||||||||||||
Outstanding | Exercise | Remaining | Value | ||||||||||||||
Price | Contractual | ||||||||||||||||
Term | |||||||||||||||||
Outstanding at January 1, 2012 | 2,536 | $ | 9 | ||||||||||||||
Granted | 972 | 7.15 | |||||||||||||||
Cancelled or forfeited | (109 | ) | 10.62 | ||||||||||||||
Exercised | (227 | ) | 2.9 | ||||||||||||||
Outstanding at December 31, 2012 | 3,172 | $ | 8.81 | 5.19 | $ | 1,479 | |||||||||||
Vested and expected to vest | 3,071 | $ | 8.86 | 5.06 | $ | 1,433 | |||||||||||
Exercisable at December 31, 2012 | 1,966 | $ | 9.58 | 3.2 | $ | 971 | |||||||||||
Restricted Stock | Number of | Weighted | |||||||||||||||
Shares | Average | ||||||||||||||||
Outstanding | Grant Date | ||||||||||||||||
Fair Value | |||||||||||||||||
Outstanding at January 1, 2012 | 403 | $ | 7.68 | ||||||||||||||
Awarded | 293 | 7.69 | |||||||||||||||
Forfeited | (49 | ) | 8.36 | ||||||||||||||
Released | (143 | ) | 6.61 | ||||||||||||||
Outstanding at December 31, 2012 | 504 | $ | 7.93 | ||||||||||||||
Summary of Share-Based Compensation Expense Related to Employee Share-Based Compensation | ' | ||||||||||||||||
The following table summarizes share-based compensation expense related to employee share-based compensation under FASB ASC 718 for 2013, 2012 and 2011. This expense was allocated as follows: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Cost of revenue | $ | 246 | $ | 272 | $ | 161 | |||||||||||
Research and development expenses | 230 | 267 | 474 | ||||||||||||||
Selling, general and administrative expenses | 2,604 | 2,929 | 2,296 | ||||||||||||||
Total | $ | 3,080 | $ | 3,468 | $ | 2,931 | |||||||||||
Assumptions Used for Determining Fair Value of Options | ' | ||||||||||||||||
In calculating compensation expense, the fair value of the options is estimated on the grant date using the Black-Scholes model including the following assumptions: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Risk-free interest rate | 0.75 - 2.29% | 0.65 - 1.37% | 1.59 - 2.78% | ||||||||||||||
Expected life of option (years) | 5.31 to 7.38 | 5.38 to 7.14 | 6.00 to 6.25 | ||||||||||||||
Expected volatility of stock | 69.00% | 69.00 - 71.00% | 71.00 - 72.00% | ||||||||||||||
Weighted-average volatility | 69.00% | 69.50% | 71.58% | ||||||||||||||
Dividend yield | 0.00% | 0.00% | 0.00% | ||||||||||||||
Weighted Average Estimated Fair Value Per Share of Stock Options and Restricted Stock Granted | ' | ||||||||||||||||
Based on the assumptions noted above, the weighted average estimated grant date fair value per share of the stock options and restricted stock granted for 2013, 2012 and 2011 was as follows: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Stock options | $ | 5.7 | $ | 4.65 | $ | 8.01 | |||||||||||
Restricted stock | 9.35 | 7.69 | 11.61 | ||||||||||||||
Estimated Grant Date Fair Value Per Share of Performance Options Granted | ' | ||||||||||||||||
Based on the assumptions noted above, the estimated grant date fair value per share of the performance options granted in 2012 was as follows: | |||||||||||||||||
Price Target | Fair Value | ||||||||||||||||
Tranche 1 | $ | 10 | $ | 4.32 | |||||||||||||
Tranche 2 | 12.5 | 4.3 | |||||||||||||||
Tranche 3 | 15 | 4.27 | |||||||||||||||
Tranche 4 | 17.5 | 4.23 | |||||||||||||||
Tranche 5 | 20 | 4.19 | |||||||||||||||
Tranche 6 | 25 | 4.1 | |||||||||||||||
Tranche 7 | 30 | 4.01 | |||||||||||||||
Tranche 8 | 35 | 3.92 | |||||||||||||||
Tranche 9 | 40 | 3.83 | |||||||||||||||
Performance Shares [Member] | ' | ||||||||||||||||
Assumptions Used for Determining Fair Value of Options | ' | ||||||||||||||||
In calculating compensation expense for performance options, the fair value of the options is estimated on the grant date using a Monte Carlo simulation including the following assumptions: | |||||||||||||||||
Strike price | $ | 5.91 | |||||||||||||||
Contractual term | 10 | ||||||||||||||||
Expected volatility of stock | 69.6 | % | |||||||||||||||
Expected rate of return | 1.75 | % | |||||||||||||||
Dividend yield | 0 | % |
SEGMENT_AND_GEOGRAPHIC_INFORMA1
SEGMENT AND GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Summary of Geographic Revenue | ' | ||||||||||||
Domestic revenue by product type was as follows: | |||||||||||||
Revenue: | 2013 | 2012 | 2011 | ||||||||||
Open-heart | $ | 37,843 | $ | 32,880 | $ | 29,202 | |||||||
Minimally invasive | 13,648 | 12,733 | 14,166 | ||||||||||
AtriClip | 10,820 | 7,003 | 5,563 | ||||||||||
Total domestic | $ | 62,311 | $ | 52,616 | $ | 48,931 | |||||||
International revenue by product type was as follows: | |||||||||||||
Revenue: | 2013 | 2012 | 2011 | ||||||||||
Open-heart | $ | 13,064 | $ | 11,972 | $ | 11,205 | |||||||
Minimally invasive | 5,354 | 4,813 | 3,824 | ||||||||||
AtriClip | 1,160 | 846 | 442 | ||||||||||
Total international | $ | 19,578 | $ | 17,631 | $ | 15,471 | |||||||
Revenue by Product | ' | ||||||||||||
Revenue by geographic area was as follows: | |||||||||||||
Revenue: | 2013 | 2012 | 2011 | ||||||||||
United States | $ | 62,311 | $ | 52,616 | $ | 48,931 | |||||||
Europe | 11,384 | 10,344 | 8,706 | ||||||||||
Asia | 7,665 | 6,730 | 6,254 | ||||||||||
Other international | 529 | 557 | 511 | ||||||||||
Total revenue | $ | 81,889 | $ | 70,247 | $ | 64,402 | |||||||
SELECTED_QUARTERLY_FINANCIAL_D1
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information | ' | ||||||||||||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||
Operating Results: | |||||||||||||||||||||||||||||||||
Revenue | $ | 19,430 | $ | 17,476 | $ | 20,429 | $ | 18,268 | $ | 20,146 | $ | 16,139 | $ | 21,884 | $ | 18,364 | |||||||||||||||||
Gross profit | 14,086 | 12,752 | 15,123 | 12,711 | 14,685 | 11,549 | 15,669 | 13,002 | |||||||||||||||||||||||||
Loss from operations | (1,800 | ) | (1,496 | ) | (1,639 | ) | (1,320 | ) | (2,614 | ) | (2,529 | ) | (4,838 | ) | (1,852 | ) | |||||||||||||||||
Net loss | (1,943 | ) | (1,620 | ) | (1,791 | ) | (1,326 | ) | (2,748 | ) | (2,567 | ) | (4,980 | ) | (2,020 | ) | |||||||||||||||||
Net loss per share (basic and diluted) | $ | (0.10 | ) | $ | (0.10 | ) | $ | (0.09 | ) | $ | (0.08 | ) | $ | (0.13 | ) | $ | (0.16 | ) | $ | (0.24 | ) | $ | (0.12 | ) |
Recovered_Sheet1
Description of Business and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Description Of Business And Significant Accounting Policies [Line Items] | ' | ' | ' |
Maturity period of highly liquid investments | '3 months | ' | ' |
Maturity period of short term investment | '1 year | ' | ' |
Shipping and handling revenue | $786 | $723 | $664 |
Payment terms for end-users | '30 days | ' | ' |
Payment terms for distributors | '60 days | ' | ' |
Cost of lending disposable products to direct customers | 0 | ' | ' |
Foreign currency transaction (losses) gains | -209 | 115 | -119 |
Grant income | 0 | 409 | 52 |
(Income) expense related to remeasurement of fair value of fully vested stock options | 272 | -179 | -23 |
Company's expense related to the medical device excise tax | 417 | ' | ' |
Options, restricted stock and performance based shares excluded from calculation of net loss per share | 2,721 | 3,676 | 2,949 |
Recognized expense related to stock options and restricted stock | 3,080 | 3,468 | 2,931 |
Unexercised shares of common stock held by non-employee consultants | 38 | 38 | ' |
Accrued non-employee stock options | 350 | 78 | ' |
Subsidiaries [Member] | ' | ' | ' |
Description Of Business And Significant Accounting Policies [Line Items] | ' | ' | ' |
Foreign currency transaction (losses) gains | 269 | -83 | 30 |
Computer and other office equipment [Member] | ' | ' | ' |
Description Of Business And Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful life by major asset category | '3 years | ' | ' |
Generators [Member] | ' | ' | ' |
Description Of Business And Significant Accounting Policies [Line Items] | ' | ' | ' |
Depreciation | 1,251 | 1,081 | 1,294 |
Carrying amount of loaned equipment [Member] | ' | ' | ' |
Description Of Business And Significant Accounting Policies [Line Items] | ' | ' | ' |
Net carrying amount of loaned equipment | $3,173 | $2,197 | ' |
Minimum [Member] | Machinery and equipment [Member] | ' | ' | ' |
Description Of Business And Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful life by major asset category | '3 years | ' | ' |
Minimum [Member] | Furniture and fixtures [Member] | ' | ' | ' |
Description Of Business And Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful life by major asset category | '3 years | ' | ' |
Minimum [Member] | Generators [Member] | ' | ' | ' |
Description Of Business And Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful life by major asset category | '1 year | ' | ' |
Maximum [Member] | Machinery and equipment [Member] | ' | ' | ' |
Description Of Business And Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful life by major asset category | '7 years | ' | ' |
Maximum [Member] | Furniture and fixtures [Member] | ' | ' | ' |
Description Of Business And Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful life by major asset category | '7 years | ' | ' |
Maximum [Member] | Generators [Member] | ' | ' | ' |
Description Of Business And Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful life by major asset category | '3 years | ' | ' |
Recovered_Sheet2
Description of Business and Summary of Significant Accounting Policies - Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | Unrealized gains on investments [Member] | Unrealized gains on investments [Member] | Unrealized gains on investments [Member] | Foreign currency translation adjustment [Member] | Foreign currency translation adjustment [Member] | Foreign currency translation adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance | ($139) | $77 | ($37) | $80 | $1 | $2 | ' | $76 | ($39) | $80 |
Other comprehensive (loss) income before reclassifications | ' | ' | ' | ' | -7 | -1 | 2 | -478 | 198 | -149 |
Amounts reclassified from accumulated other comprehensive income to other income on the statement of operations | ' | ' | ' | ' | ' | ' | ' | 269 | -83 | 30 |
Ending Balance | ($139) | $77 | ($37) | $80 | ($6) | $1 | $2 | ($133) | $76 | ($39) |
Fair_Value_Financial_Assets_an
Fair Value - Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) (Fair Value, Measurements, Recurring [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets: | ' | ' |
Total assets | $23,528 | $9,508 |
Liabilities: | ' | ' |
Derivative instruments | 350 | 78 |
Acquisition-related contingent consideration | 8,032 | ' |
Total liabilities | 8,382 | 78 |
Money market funds [Member] | ' | ' |
Assets: | ' | ' |
Total assets | 4,295 | 5,261 |
Commercial paper [Member] | ' | ' |
Assets: | ' | ' |
Total assets | 2,598 | 3,247 |
U.S. government agencies and securities [Member] | ' | ' |
Assets: | ' | ' |
Total assets | 4,145 | 1,000 |
Corporate bonds [Member] | ' | ' |
Assets: | ' | ' |
Total assets | 12,490 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Assets: | ' | ' |
Total assets | 4,145 | 1,000 |
Liabilities: | ' | ' |
Derivative instruments | ' | ' |
Acquisition-related contingent consideration | ' | ' |
Total liabilities | ' | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Money market funds [Member] | ' | ' |
Assets: | ' | ' |
Total assets | ' | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Commercial paper [Member] | ' | ' |
Assets: | ' | ' |
Total assets | ' | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. government agencies and securities [Member] | ' | ' |
Assets: | ' | ' |
Total assets | 4,145 | 1,000 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate bonds [Member] | ' | ' |
Assets: | ' | ' |
Total assets | ' | ' |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Assets: | ' | ' |
Total assets | 19,383 | 8,508 |
Liabilities: | ' | ' |
Derivative instruments | ' | ' |
Acquisition-related contingent consideration | ' | ' |
Total liabilities | ' | ' |
Significant Other Observable Inputs (Level 2) [Member] | Money market funds [Member] | ' | ' |
Assets: | ' | ' |
Total assets | 4,295 | 5,261 |
Significant Other Observable Inputs (Level 2) [Member] | Commercial paper [Member] | ' | ' |
Assets: | ' | ' |
Total assets | 2,598 | 3,247 |
Significant Other Observable Inputs (Level 2) [Member] | U.S. government agencies and securities [Member] | ' | ' |
Assets: | ' | ' |
Total assets | ' | ' |
Significant Other Observable Inputs (Level 2) [Member] | Corporate bonds [Member] | ' | ' |
Assets: | ' | ' |
Total assets | 12,490 | ' |
Significant Other Unobservable Inputs (Level 3) [Member] | ' | ' |
Assets: | ' | ' |
Total assets | ' | ' |
Liabilities: | ' | ' |
Derivative instruments | 350 | 78 |
Acquisition-related contingent consideration | 8,032 | ' |
Total liabilities | 8,382 | 78 |
Significant Other Unobservable Inputs (Level 3) [Member] | Money market funds [Member] | ' | ' |
Assets: | ' | ' |
Total assets | ' | ' |
Significant Other Unobservable Inputs (Level 3) [Member] | Commercial paper [Member] | ' | ' |
Assets: | ' | ' |
Total assets | ' | ' |
Significant Other Unobservable Inputs (Level 3) [Member] | U.S. government agencies and securities [Member] | ' | ' |
Assets: | ' | ' |
Total assets | ' | ' |
Significant Other Unobservable Inputs (Level 3) [Member] | Corporate bonds [Member] | ' | ' |
Assets: | ' | ' |
Total assets | ' | ' |
Fair_Value_Additional_Informat
Fair Value - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value Disclosures [Abstract] | ' | ' |
Changes in levels of financial assets and liabilities | $0 | $0 |
Fair value based on future performance | 8,032 | ' |
Earnout calculation based on achievement of performance-based milestone | $26,000 | ' |
Fair_Value_Assumptions_Used_fo
Fair Value - Assumptions Used for Estimating Fair Value of Level 3 Derivative Instruments (Detail) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ' | ' |
Expected volatility of stock | 70.00% | 70.00% |
Dividend yield | 0.00% | 0.00% |
Minimum [Member] | ' | ' |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ' | ' |
Risk-free interest rate | 0.11% | 0.23% |
Expected life of option (years) | '9 months | '1 year 9 months |
Maximum [Member] | ' | ' |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ' | ' |
Risk-free interest rate | 1.32% | 0.74% |
Expected life of option (years) | '4 years 1 month 6 days | '5 years 1 month 6 days |
Fair_Value_Level_3_Fair_Value_
Fair Value - Level 3 Fair Value Measurements Using Significant Other Unobservable Inputs for Derivative Instruments (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Fair Value Disclosures [Abstract] | ' | ' | ' |
Beginning Balance | $78 | $208 | $268 |
Total gains/losses (realized/unrealized) included in earnings | 272 | -179 | -23 |
Purchases (exercises) | ' | -50 | -55 |
Reclassification from equity to liability when fully vested | ' | 99 | 18 |
Ending Balance | 350 | 78 | 208 |
(Losses) gains included in earnings (or changes in net assets attributable to the change in unrealized gains/losses relating to assets held at reporting date) | ($272) | $179 | $23 |
Fair_Value_Level_3_Fair_Value_1
Fair Value - Level 3 Fair Value Measurements Using Significant Other Unobservable Inputs for Acquisition Related Contingent Consideration (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Debt Instrument Fair Value Carrying Value [Abstract] | ' | ' | ' |
Beginning Balance | ' | ' | ' |
Amounts acquired (sold) or issued (settled), net | 8,032 | ' | ' |
Transfers in and/or (out)of Level 3 | ' | ' | ' |
Changes in fair value recorded in earnings | ' | ' | ' |
Ending Balance | $8,032 | ' | ' |
Investments_Summary_of_Shortte
Investments - Summary of Short-term Investments (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Investment [Line Items] | ' | ' |
Short-term investments, Cost Basis | $19,239 | $4,246 |
Short-term investments, Fair value | 11,319 | 4,247 |
Short-term investment, Unrealized Gains (Losses) | -6 | 1 |
Corporate bonds [Member] | ' | ' |
Investment [Line Items] | ' | ' |
Short-term investments, Cost Basis | 12,498 | ' |
Short-term investments, Fair value | 12,490 | ' |
Short-term investment, Unrealized Gains (Losses) | -8 | ' |
U.S. Government agencies and securities [Member] | ' | ' |
Investment [Line Items] | ' | ' |
Short-term investments, Cost Basis | 4,143 | 999 |
Short-term investments, Fair value | 4,145 | 1,000 |
Short-term investment, Unrealized Gains (Losses) | 2 | 1 |
Commercial paper [Member] | ' | ' |
Investment [Line Items] | ' | ' |
Short-term investments, Cost Basis | 2,598 | 3,247 |
Short-term investments, Fair value | 2,598 | 3,247 |
Short-term investment, Unrealized Gains (Losses) | $0 | $0 |
Investments_Additional_Informa
Investments - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Investments Schedule [Abstract] | ' | ' |
Long-term investments | $7,914 | $0 |
Business_Combination_Additiona
Business Combination - Additional Information (Detail) (USD $) | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 |
Business Combination Transactions [Line Items] | ' |
Consideration related to earnout calculation | $26,000 |
Fair value based on future performance | 8,032 |
Purchase price allocation completion of terms | '1 year |
Acquisition related cost | 1,207 |
At least 90% of 2014 Combined MIS Revenue Target or 2015 Combined Revenue Company [Member] | ' |
Business Combination Transactions [Line Items] | ' |
Milestone payment | 3,000 |
Milestone achievement payment | 90.00% |
Between 90% and 98% of the 2014 Combined MIS Revenue Target or the 2015 Combined MIS Revenue Target [Member] | ' |
Business Combination Transactions [Line Items] | ' |
Milestone payment | 2,500 |
Between 98% and 100% of the 2014 Combined MIS Revenue Target or the 2015 Combined Revenue Company [Member] | ' |
Business Combination Transactions [Line Items] | ' |
Milestone payment | 2,500 |
Between 100% and 125% of the 2014 Combined MIS Revenue Target or the 2015 Combined Revenue Company [Member] | ' |
Business Combination Transactions [Line Items] | ' |
Milestone payment | 5,000 |
Minimum [Member] | Between 90% and 98% of the 2014 Combined MIS Revenue Target or the 2015 Combined MIS Revenue Target [Member] | ' |
Business Combination Transactions [Line Items] | ' |
Milestone achievement payment | 90.00% |
Minimum [Member] | Between 98% and 100% of the 2014 Combined MIS Revenue Target or the 2015 Combined Revenue Company [Member] | ' |
Business Combination Transactions [Line Items] | ' |
Milestone achievement payment | 98.00% |
Minimum [Member] | Between 100% and 125% of the 2014 Combined MIS Revenue Target or the 2015 Combined Revenue Company [Member] | ' |
Business Combination Transactions [Line Items] | ' |
Milestone achievement payment | 100.00% |
Maximum [Member] | Between 90% and 98% of the 2014 Combined MIS Revenue Target or the 2015 Combined MIS Revenue Target [Member] | ' |
Business Combination Transactions [Line Items] | ' |
Milestone achievement payment | 98.00% |
Maximum [Member] | Between 98% and 100% of the 2014 Combined MIS Revenue Target or the 2015 Combined Revenue Company [Member] | ' |
Business Combination Transactions [Line Items] | ' |
Milestone achievement payment | 100.00% |
Maximum [Member] | Between 100% and 125% of the 2014 Combined MIS Revenue Target or the 2015 Combined Revenue Company [Member] | ' |
Business Combination Transactions [Line Items] | ' |
Milestone achievement payment | 125.00% |
Estech [Member] | ' |
Business Combination Transactions [Line Items] | ' |
Acquisition of shares and voting interest | 100.00% |
Consideration paid to former shareholders | 34,000 |
Issuance of common stock | 2,126,343 |
Common stock, par value | $15.99 |
Acquisition related cost | 1,207 |
Estech [Member] | Common Stock [Member] | ' |
Business Combination Transactions [Line Items] | ' |
Consideration paid to former shareholders | $39,720 |
Common stock, par value | $18.68 |
Business_Combination_Summary_o
Business Combination - Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Business Combinations [Abstract] | ' |
Cash and cash equivalents | $3,708 |
Accounts receivable, net | 2,378 |
Inventories | 2,156 |
Other current assets | 271 |
Property and equipment, net | 1,026 |
Intangible assets, net | 10,279 |
Other assets | 51 |
Total identifiable assets | 19,869 |
Accounts payable | 1,761 |
Accrued liabilities | 5,742 |
Total liabilities assumed | 7,503 |
Net identifiable assets acquired | 12,366 |
Goodwill | 35,386 |
Total consideration | $47,752 |
Business_Combination_Valuation
Business Combination - Valuation of Intangible Assets Acquired and Related Amortization (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Intangible assets | $10,279 |
Estech [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Intangible assets | 10,279 |
Estech [Member] | Fusion Technology [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Intangible assets | 9,242 |
Intangible assets amortization period | '10 years |
Estech [Member] | Clamp and Probe Technology [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Intangible assets | 829 |
Intangible assets amortization period | '3 years |
Estech [Member] | Estech Trade Name [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Intangible assets | $208 |
Intangible assets amortization period | '1 year |
Business_Acquisition_Acquisiti
Business Acquisition - Acquisition Related Cost (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Business Acquisition [Line Items] | ' |
Acquisition-related costs | $1,207 |
Estech [Member] | ' |
Business Acquisition [Line Items] | ' |
Acquisition-related costs | 1,207 |
Bank fees and expenses [Member] | Estech [Member] | ' |
Business Acquisition [Line Items] | ' |
Acquisition-related costs | 509 |
Legal, audit, tax and other costs [Member] | Estech [Member] | ' |
Business Acquisition [Line Items] | ' |
Acquisition-related costs | $698 |
Business_Combination_Pro_forma
Business Combination - Pro forma Acquisition Information (Detail) (Estech [Member], USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Estech [Member] | ' | ' |
Business Acquisition Pro Forma Information [Line Items] | ' | ' |
Revenue | $93,846 | $81,954 |
Net loss | ($21,161) | ($19,031) |
Basic and diluted net loss per share | ($0.91) | ($1.04) |
Recovered_Sheet3
Intangible Assets and Goodwill - Summary of Company's Intangible Assets with Definite Lives (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Net carrying amount, Beginning balance | $32 | $45 | $89 |
Amortization | -12 | -13 | -44 |
Additions | 10,279 | ' | ' |
Net carrying amount, Ending balance | 10,299 | 32 | 45 |
Non-Compete Agreement [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Net carrying amount, Beginning balance | 32 | 45 | 57 |
Amortization | -12 | -13 | -12 |
Net carrying amount, Ending balance | 20 | 32 | 45 |
Cooper Trade Name [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Net carrying amount, Beginning balance | ' | ' | 32 |
Amortization | ' | ' | -32 |
Net carrying amount, Ending balance | ' | ' | ' |
Fusion Technology [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Net carrying amount, Beginning balance | ' | ' | ' |
Amortization | ' | ' | ' |
Additions | 9,242 | ' | ' |
Net carrying amount, Ending balance | 9,242 | ' | ' |
Clamp and Probe Technology [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Net carrying amount, Beginning balance | ' | ' | ' |
Amortization | ' | ' | ' |
Additions | 829 | ' | ' |
Net carrying amount, Ending balance | 829 | ' | ' |
Estech Trade Name [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Net carrying amount, Beginning balance | ' | ' | ' |
Amortization | ' | ' | ' |
Additions | 208 | ' | ' |
Net carrying amount, Ending balance | $208 | ' | ' |
Recovered_Sheet4
Intangible Assets and Goodwill - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Amortization of intangible assets | $12 | $13 | $44 |
Intangible assets | 10,279 | ' | ' |
Proceeds from sale of intellectual property | ' | ' | 300 |
Gain on sale of intellectual property | ' | ' | 300 |
Cooper Trade Name [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Amortization of intangible assets | ' | ' | 32 |
Amortization period | '4 years | ' | ' |
Non-Compete Agreement [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Amortization of intangible assets | 12 | 13 | 12 |
Amortization period | '8 years | ' | ' |
Developed Technology Rights [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Proceeds from sale of intellectual property | ' | ' | 300 |
Gain on sale of intellectual property | ' | ' | 300 |
Estech [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Intangible assets | 10,279 | ' | ' |
Number of intangible assets acquired | 3,000 | ' | ' |
Estech [Member] | Fusion Technology [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Intangible assets | 9,242 | ' | ' |
Intangible assets amortization period | '10 years | ' | ' |
Estech [Member] | Clamp and Probe Technology [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Intangible assets | 829 | ' | ' |
Intangible assets amortization period | '3 years | ' | ' |
Estech [Member] | Estech Trade Name [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Intangible assets | $208 | ' | ' |
Intangible assets amortization period | '1 year | ' | ' |
Intangible_Assets_and_Goodwill2
Intangible Assets and Goodwill - Future Amortization Expense Related to Intangible Assets with Definite Lives (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ' | ' | ' |
2014 | $1,421 | ' | ' | ' |
2015 | 1,208 | ' | ' | ' |
2016 | 1,201 | ' | ' | ' |
2017 | 924 | ' | ' | ' |
2018 | 924 | ' | ' | ' |
2019 and thereafter | 4,621 | ' | ' | ' |
Total | $10,299 | $32 | $45 | $89 |
Intangible_Assets_and_Goodwill3
Intangible Assets and Goodwill - Summary of Company's Goodwill (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Goodwill [Line Items] | ' |
Net carrying amount Ending Balance | $35,386 |
Estech [Member] | ' |
Goodwill [Line Items] | ' |
Net carrying amount Beginning Balance | ' |
Goodwill amount recorded | 35,386 |
Net carrying amount Ending Balance | $35,386 |
Inventories_Summary_of_Invento
Inventories - Summary of Inventories (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw materials | $3,279 | $3,066 |
Work in process | 1,472 | 675 |
Finished goods | 5,463 | 1,977 |
Inventories | $10,214 | $5,718 |
Property_and_Equipment_Summary
Property and Equipment - Summary of Property and Equipment (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $12,473 | $9,698 |
Less accumulated depreciation | -6,830 | -6,268 |
Property and equipment, net | 5,643 | 3,430 |
Machinery, equipment and vehicles [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 9,917 | 7,489 |
Computer and other office equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 1,522 | 1,538 |
Furniture and fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 208 | 212 |
Leasehold improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 262 | 165 |
Equipment under capital leases [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 153 | 226 |
Construction in progress [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $411 | $68 |
Property_and_Equipment_Additio
Property and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property Plant And Equipment [Abstract] | ' | ' | ' |
Property and equipment depreciation expense | $2,008 | $1,886 | $1,878 |
Accrued_Liabilities_Accrued_Li
Accrued Liabilities - Accrued Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Payables And Accruals [Abstract] | ' | ' |
Accrued bonus | $6,849 | $487 |
Accrued commissions | 3,827 | 1,464 |
Accrued settlement reserve (current portion) | 1,259 | 1,120 |
Other accrued liabilities | 1,105 | 458 |
Accrued taxes and value-added taxes payable | 907 | 366 |
Withheld payroll taxes | 546 | 151 |
Accrued vacation | 476 | 349 |
Accrued non-employee stock options | 350 | 78 |
Accrued royalty | 307 | 118 |
Accrued payroll | 233 | 153 |
Sales/returns allowance-trade | 105 | 105 |
Accrued 401(k) match | 84 | ' |
Accrued severance | 22 | 224 |
Total | $16,070 | $5,073 |
Indebtedness_LongTerm_Debt_and
Indebtedness - Long-Term Debt and Capital Leases (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ' | ' |
Credit facility | $6,333 | $8,333 |
Capital leases | 117 | 103 |
Total debt and capital leases | 6,450 | 8,436 |
Less: Current maturities | -2,038 | -2,029 |
Total long-term debt and capital leases | $4,412 | $6,407 |
Indebtedness_Additional_Inform
Indebtedness - Additional Information (Detail) | 0 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||||
In Thousands, unless otherwise specified | Mar. 29, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Jun. 30, 2011 | Dec. 31, 2013 | Mar. 29, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 29, 2013 | Mar. 29, 2013 | Dec. 31, 2013 |
USD ($) | USD ($) | EUR (€) | USD ($) | Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility Modification Agreement [Member] | Term Loan Modification Agreement [Member] | Credit Card Receivable [Member] | ||
Milestone | USD ($) | USD ($) | USD ($) | USD ($) | |||||||||
Credit Facilities [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term loan arrangements | ' | $10,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility maturity date | ' | ' | ' | ' | ' | 2-Feb-17 | ' | ' | 30-Apr-14 | ' | ' | ' | ' |
Credit facility | ' | 10,000 | ' | ' | ' | ' | ' | ' | 8,299 | 5,303 | ' | ' | ' |
Covenant milestones met | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase to the applicable interest rate | ' | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest on the revolving loan accrued at a fluctuating borrowing rate above the prime rate | 0.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.25% | ' | ' |
Interest rate in addition to the prime rate during a Non-Streamline Period | 1.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction of fixed interest rate on the term loan | ' | ' | ' | ' | ' | ' | 6.75% | ' | ' | ' | ' | 4.75% | ' |
Interest rate on term loan | ' | 4.75% | 6.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowings under the revolving credit facility | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' |
Amount outstanding under line of credit | ' | 6,333 | 8,333 | ' | ' | 6,333 | ' | 8,333 | ' | ' | ' | ' | ' |
Current maturities of long-term debt | ' | ' | ' | ' | ' | 2,000 | ' | 2,000 | ' | ' | ' | ' | ' |
Accelerated amortization expense | ' | 79 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrant expense | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred financing cost | ' | 74 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest on the term loan portion accrued | ' | ' | ' | ' | ' | 6.50% | ' | ' | ' | ' | ' | ' | ' |
Letter of credit outstanding | ' | ' | 0 | 75 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding letter of credit cancelled | ' | ' | ' | ' | 250 | ' | ' | ' | ' | ' | ' | ' | ' |
Expiry of outstanding letter of credit | ' | 30-Jun-15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31-Jul-11 |
Capital lease expiration period | ' | '2017 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost of assets under lease | ' | 153 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated amortization on the capital leases | ' | $41 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Indebtedness_Maturities_on_Deb
Indebtedness - Maturities on Debt, Including Capital Lease Obligations (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ' | ' |
2014 | $2,038 | ' |
2015 | 2,038 | ' |
2016 | 2,030 | ' |
2017 | 344 | ' |
Total debt and capital leases | $6,450 | $8,436 |
Recovered_Sheet5
Commitments and Contingencies - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 13 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Apr. 30, 2012 | Dec. 31, 2009 | Dec. 31, 2010 | Dec. 31, 2010 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2010 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 |
Unit | USD ($) | USD ($) | EUR (€) | Unit | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | Unit | Minimum [Member] | Maximum [Member] | Chief Financial Officer [Member] | Chief Executive Officer [Member] | |
Unit | USD ($) | USD ($) | USD ($) | USD ($) | |||||||||||
Commitments and Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating leases expire at various terms | ' | ' | ' | ' | ' | '2015 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Lease rent expense | ' | ' | ' | ' | ' | $870 | $769 | $685 | ' | ' | ' | ' | ' | ' | ' |
Royalty rates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.50% | 5.00% | ' | ' |
Royalty payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50 | 2,000 | ' | ' |
Royalty agreement term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '20 years | ' | ' |
Royalty expense | ' | ' | ' | ' | ' | 962 | 603 | 505 | ' | ' | ' | ' | ' | ' | ' |
Minimum units the company was required to purchase | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40 | ' | ' | ' | ' |
Purchases of additional units | ' | ' | ' | ' | ' | 40 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total quantity purchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 56 | ' | ' | ' | ' |
Actual quantity purchased | ' | ' | ' | ' | 60 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of radio frequency generators manufacture | 300 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum quantity required beyond specific limit | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Definitive Stipulation of Settlement agreement | ' | ' | ' | ' | ' | 'October 1, 2010 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distributor earnings | ' | ' | 69 | 50 | ' | ' | ' | ' | 550 | 400 | ' | ' | ' | ' | ' |
Employee salary and compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250 | 225 |
Expense related to the departure of the Company's Chief Financial Officer and Chief Executive Officer | ' | ' | ' | ' | ' | ' | 1,600 | ' | ' | ' | ' | ' | ' | ' | ' |
Operating expenses related to investigation | ' | 3,956 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Definitive stipulation of settlement agreement | ' | 4,350 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest payment term | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Settlement agreement payments (including interest) | ' | ' | ' | ' | ' | 3,225 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liability related settlement current | ' | ' | ' | ' | ' | $1,259 | $1,120 | ' | ' | ' | ' | ' | ' | ' | ' |
Company integrity agreement with office of inspector general | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies - Future Minimum Lease Payments Under Non-cancellable Operating Leases (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Commitments And Contingencies Disclosure [Abstract] | ' |
2014 | $1,190 |
2015 | 456 |
Total | $1,646 |
Income_Taxes_Detail_of_Deferre
Income Taxes - Detail of Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets (liabilities): | ' | ' |
Net operating loss carryforward | $46,362 | $22,974 |
Research and development credit carryforward | 4,425 | 3,603 |
Equity compensation | 2,477 | 4,082 |
Accruals and reserves | 1,007 | 269 |
Inventories | 290 | 228 |
Intangible assets | -186 | 757 |
Property and equipment, net | -173 | -230 |
Other, net | 9 | 2 |
Subtotal | 54,211 | 31,685 |
Less valuation allowance | -54,211 | -31,685 |
Total | ' | ' |
Income_Taxes_Companys_Provisio
Income Taxes - Company's Provision for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Current income tax expense | $18 | $50 | $31 |
Deferred tax benefit | -3,728 | -2,336 | -2,005 |
Increase in valuation allowance | 3,728 | 2,336 | 2,005 |
Total income tax expense | $18 | $50 | $31 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Contingency [Line Items] | ' | ' | ' |
Research and development credit carry forward | $4,425 | $3,603 | ' |
Pre-tax book loss | -11,444 | -7,484 | -5,425 |
Unrecognized Tax Benefits | 0 | 0 | 0 |
Unrecognized Tax Benefits, increase resulting from prior period tax positions | 1,982 | ' | ' |
Unrecognized tax benefits, accrued interest and penalties | 0 | ' | ' |
Federal [Member] | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Research and development credit carry forward | 5,207 | ' | ' |
Federal research and development credit credit carry forward expiry | '2022 | ' | ' |
Federal [Member] | 2021 [Member] | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Operating loss carryforward | 120,320 | ' | ' |
Operating loss carryforward, expiry date | 'Begin to expire in 2019 | ' | ' |
State [Member] | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Operating loss carryforward | 63,387 | ' | ' |
Foreign [Member] | 2016 [Member] | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Operating loss carryforward | 11,779 | ' | ' |
Operating loss carryforward, expiry date | 'Begin to expire in 2016 | ' | ' |
Domestic [Member] | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Pre-tax book loss | -9,409 | -5,909 | -4,530 |
International operations [Member] | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Pre-tax book loss | ($2,035) | ($1,575) | ($895) |
Minimum [Member] | State [Member] | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
State Operating loss carryforward expiry date | '5 years | ' | ' |
Maximum [Member] | State [Member] | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
State Operating loss carryforward expiry date | '20 years | ' | ' |
Income_Taxes_Difference_Betwee
Income Taxes - Difference Between Effective Income Tax Rates and Federal Statutory Rate (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Federal tax at statutory rate | 34.00% | 34.00% | 34.00% |
Federal R&D credit | 3.35% | 0.08% | 6.11% |
Valuation allowance | -29.63% | -31.98% | -37.09% |
State income taxes | 0.04% | 0.67% | 2.90% |
Foreign NOL rate change | 2.47% | 1.40% | ' |
Foreign tax rate differential | -1.60% | -1.94% | -1.49% |
Other | -8.79% | -2.91% | -5.00% |
Effective tax rate | -0.16% | -0.68% | -0.57% |
Federal tax at statutory rate | ($3,891) | ($2,483) | ($1,844) |
Federal R&D credit | -383 | -6 | -332 |
Valuation allowance | 3,391 | 2,336 | 2,012 |
State income taxes | -5 | -49 | -157 |
Foreign NOL rate change | -283 | -102 | ' |
Foreign tax rate differential | 183 | 142 | 81 |
Other | 1,006 | 212 | 271 |
Total income tax expense | $18 | $50 | $31 |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Change in Federal and State Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Balance at the beginning of the year | ' | ' | ' |
Increases (decreases) for prior year tax positions | 1,982 | ' | ' |
Increases (decreases) for current year tax positions | ' | ' | ' |
Increases (decreases) related to settlements | ' | ' | ' |
Decreases related to statute lapse | ' | ' | ' |
Balance at the end of the year | $1,982 | ' | ' |
Concentrations_Additional_Info
Concentrations - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Customer | |||
Concentration Risk [Line Items] | ' | ' | ' |
Percentage of total net revenue derived from top ten customers | 20.40% | 19.60% | 20.90% |
Number of customers | 10 | ' | ' |
Cash and cash equivalents balance in excess of FDIC limits | $34,336 | ' | ' |
Net Revenue [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Percentage of total net revenue derived from top ten customers | 10.00% | ' | ' |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Compensation And Retirement Disclosure [Abstract] | ' | ' | ' |
Contribution by eligible employees | $17 | ' | ' |
Contribution by participants over age 50 | 22 | ' | ' |
Employee contribution percent | 25.00% | 25.00% | 25.00% |
Maximum percentage of employee contribution to the plan | 6.00% | 6.00% | 6.00% |
Company's matching contribution | 606 | 234 | ' |
Discretionary contributions made | $0 | $0 | $0 |
Equity_Compensation_Plans_2001
Equity Compensation Plans - 2001 Plan and 2005 Plan - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Nov. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Minimum [Member] | Maximum [Member] | 2001 Plan [Member] | 2005 Plan [Member] | 2005 Plan [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Performance Shares [Member] | Performance Shares [Member] | Performance Shares [Member] | Performance Shares [Member] | Stock Options and Restricted Stock [Member] | Stock Options and Restricted Stock [Member] | Stock Options and Restricted Stock [Member] | ||||||
2001 Plan [Member] | 2005 Plan [Member] | 2005 Plan [Member] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expiry of options from the date of grant | ' | ' | ' | ' | ' | ' | ' | '10 years | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' |
Exercisable period beginning | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options granted exercisable cumulative | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted stock awards granted annual vest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' |
Options granted from the 2005 Plan generally vest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' | ' | ' |
Common stock reserved for issuance | ' | ' | ' | ' | ' | ' | ' | ' | 6,893 | 549 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of outstanding shares of common stock on the first day | ' | ' | ' | ' | ' | ' | ' | ' | 3.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding shares of common stock on the first day | ' | ' | ' | ' | ' | ' | ' | ' | 825 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding shares authorized on that date | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares available for future grants | ' | ' | ' | ' | ' | ' | ' | ' | 1,346 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total intrinsic value of options exercised | ' | ' | $951 | $1,338 | $3,403 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash proceeds | ' | ' | 1,718 | 659 | 1,588 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total fair value of performance shares vested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 99 | 1,243 | ' | ' | ' |
Total fair value of restricted stock vested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,442 | 1,292 | 1,457 | ' | ' | ' | ' | ' | ' | ' | ' |
Tax benefit recognized | ' | ' | 1,718 | 1,718 | 1,718 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recognized expense related to stock options and restricted stock | ' | ' | 3,080 | 3,468 | 2,931 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 40 | 2,489 | 3,211 | 2,617 |
Unrecognized compensation costs related to non-vested share-based compensation arrangements with performance shares | ' | ' | 8,935 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' |
Stock options compensation costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,035 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation costs related to non-vested performance options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,900 | ' | ' | ' | ' | ' | 360 | ' | ' | ' | ' |
Weighted average period of recognizing cost | ' | ' | ' | ' | ' | '2 years 3 months 4 days | '4 years 18 days | ' | ' | ' | '2 years 9 months 18 days | ' | ' | '2 years 8 months 12 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Performance options awarded to President and CEO | ' | ' | 451 | 972 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 225 | ' | ' | ' | ' | ' | ' |
Number of shares options vest in | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25 | ' | ' | ' | ' | ' |
Period of considering closing price of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '30 days | ' | ' | ' | ' | ' |
Price by which volume adjusted weighted average closing price exceeds under vesting condition 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10 | ' | ' | ' | ' | ' |
Price by which volume adjusted weighted average closing price exceeds under vesting condition 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $12.50 | ' | ' | ' | ' | ' |
Price by which volume adjusted weighted average closing price exceeds under vesting condition 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $15 | ' | ' | ' | ' | ' |
Price by which volume adjusted weighted average closing price exceeds under vesting condition 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $17.50 | ' | ' | ' | ' | ' |
Price by which volume adjusted weighted average closing price exceeds under vesting condition 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $20 | ' | ' | ' | ' | ' |
Price by which volume adjusted weighted average closing price exceeds under vesting condition 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $25 | ' | ' | ' | ' | ' |
Price by which volume adjusted weighted average closing price exceeds under vesting condition 7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $30 | ' | ' | ' | ' | ' |
Price by which volume adjusted weighted average closing price exceeds under vesting condition 8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $35 | ' | ' | ' | ' | ' |
Price by which volume adjusted weighted average closing price exceeds under vesting condition 9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $40 | ' | ' | ' | ' | ' |
Recognized expense related to performance options | ' | ' | 3,080 | 3,468 | 2,939 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 272 | 36 | ' | ' | ' | ' |
Performance option exercisable | ' | ' | 1,363 | 1,966 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50 | ' | ' | ' | ' | ' |
Performance options outstanding | ' | ' | 2,423 | 3,172 | 2,536 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 225 | ' | ' | ' | ' | ' |
Incremental compensation expenses | $522 | $396 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Performance shares (gross) released | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 10 | ' | ' | ' | ' |
Equity_Compensation_Plans_Acti
Equity Compensation Plans - Activity Under Stock Based Compensation Plans (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Beginning balance, Number of Shares Outstanding, Stock Options | 3,172 | 2,536 | ' |
Granted, Number of Shares Outstanding, Stock Options | 451 | 972 | ' |
Cancelled or forfeited, Number of Shares Outstanding, Stock Options | -912 | -109 | ' |
Exercised, Number of Shares Outstanding, Stock Options | -288 | -227 | ' |
Ending balance, Number of Shares Outstanding, Stock Options | 2,423 | 3,172 | ' |
Vested and expected to vest, Number of Shares Outstanding, Stock Options | 2,302 | 3,071 | ' |
Exercisable at December 31, Number of Shares Outstanding, Stock Options | 1,363 | 1,966 | ' |
Beginning balance, Weighted Average Exercise Price, Stock Options | $8.81 | $9 | ' |
Granted, Weighted Average Exercise Price, Stock Options | $9.01 | $7.15 | ' |
Cancelled or Forfeited, Weighted Average Exercise Price, Stock Options | $10.34 | $10.62 | ' |
Exercised, Weighted Average Exercise Price, Stock Options | $5.98 | $2.90 | ' |
Ending balance, Weighted Average Exercise Price, Stock Options | $8.61 | $8.81 | ' |
Vested And expected to vest, Weighted Average Exercise Price, Stock Options | $8.66 | $8.86 | ' |
Exercisable at December 31, Weighted Average Exercise Price, Stock Options | $9.07 | $9.58 | ' |
Outstanding at December 31, Weighted Average Remaining Contractual Term, Stock Options | '6 years 5 months 19 days | '5 years 2 months 9 days | ' |
Vested and expected to vest, Weighted Average Remaining Contractual Term, Stock Options | '6 years 4 months 2 days | '5 years 22 days | ' |
Exercisable at December 31, Weighted Average Remaining Contractual Term, Stock Options | '4 years 7 months 2 days | '3 years 2 months 12 days | ' |
Outstanding at December 31, Aggregate Intrinsic Value, Stock Options | $24,403 | $1,479 | ' |
Vested and expected to vest, Aggregate Intrinsic Value, Stock Options | 23,082 | 1,433 | ' |
Exercisable at December 31, Aggregate Intrinsic Value, Stock Options | $13,102 | $971 | ' |
Restricted Stock [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Beginning balance, Number of Shares Outstanding | 504 | 403 | ' |
Awarded, Number of Shares Outstanding | 55 | 293 | ' |
Forfeited, Number of Shares Outstanding | -184 | -49 | ' |
Released, Number of Shares Outstanding | -127 | -143 | ' |
Ending balance, Number of Shares Outstanding | 248 | 504 | 403 |
Beginning balance, Weighted Average Grant Date Fair Value | $7.93 | $7.68 | ' |
Awarded, Weighted Average Grant Date Fair Value | $9.35 | $7.69 | $11.61 |
Forfeited, Weighted Average Grant Date Fair Value | $8.20 | $8.36 | ' |
Released, Weighted Average Grant Date Fair Value | $8.49 | $6.61 | ' |
Ending balance, Weighted Average Grant Date Fair Value | $7.75 | $7.93 | $7.68 |
Equity_Compensation_Plans_Empl
Equity Compensation Plans - Employee Stock Purchase Plan - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Description of participants purchase limit | 'Participants may not purchase more than $25 of the Company's common stock in a calendar year and, effective January 1, 2009, may not purchase more than 1.5 shares during an offering period | ' | ' |
Participants purchase limit shares | 1,500 | ' | ' |
Offering period | '6 months | ' | ' |
Recognized expense related to stock options and restricted stock | $3,080 | $3,468 | $2,931 |
ESPP [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Company's common stock may be purchased at a discount | 15.00% | ' | ' |
Shares available for sale under the ESPP increased | 2.00% | ' | ' |
Outstanding shares of common stock exceed | 600,000 | ' | ' |
Shares available for future issuance under the ESPP | 663,000 | ' | ' |
Recognized expense related to stock options and restricted stock | 319 | 257 | 273 |
ESPP [Member] | Maximum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Participants purchase limit value | $25 | ' | ' |
Equity_Compensation_Plans_Summ
Equity Compensation Plans - Summary of Share-Based Compensation Expense Related to Employee Share-Based Compensation (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total share-based compensation expense related to employees | $3,080 | $3,468 | $2,931 |
Cost of Revenue [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total share-based compensation expense related to employees | 246 | 272 | 161 |
Research and Development Expenses [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total share-based compensation expense related to employees | 230 | 267 | 474 |
Selling, General and Administrative Expenses [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total share-based compensation expense related to employees | $2,604 | $2,929 | $2,296 |
Equity_Compensation_Plans_Assu
Equity Compensation Plans - Assumptions Used for Determining Fair Value of Options (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected volatility of stock | 69.00% | ' | ' |
Weighted-average volatility | 69.00% | 69.50% | 71.58% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Minimum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Risk free/Expected interest rate | 0.75% | 0.65% | 1.59% |
Expected life of option (years) | '5 years 3 months 22 days | '5 years 4 months 17 days | '6 years |
Expected volatility of stock | ' | 69.00% | 71.00% |
Maximum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Risk free/Expected interest rate | 2.29% | 1.37% | 2.78% |
Expected life of option (years) | '7 years 4 months 17 days | '7 years 1 month 21 days | '6 years 3 months |
Expected volatility of stock | ' | 71.00% | 72.00% |
Equity_Compensation_Plans_Weig
Equity Compensation Plans - Weighted Average Estimated Fair Value Per Share of Stock Options and Restricted Stock Granted (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Weighted average estimated grant date fair value per share of the stock options granted | $5.70 | $4.65 | $8.01 |
Restricted Stock [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Weighted average estimated grant date fair value per share of the restricted stock granted | $9.35 | $7.69 | $11.61 |
Equity_Compensation_Plans_Assu1
Equity Compensation Plans - Assumptions Used for Determining Fair Value of Option (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected volatility of stock | 69.00% | ' | ' |
Dividend yield | 0.00% | 0.00% | 0.00% |
Performance Shares [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Strike price | 5.91 | ' | ' |
Contractual term | '10 years | ' | ' |
Expected volatility of stock | 69.60% | ' | ' |
Risk free/Expected interest rate | 1.75% | ' | ' |
Dividend yield | 0.00% | ' | ' |
Equity_Compensation_Plans_Esti
Equity Compensation Plans - Estimated Grant Date Fair Value Per Share of Performance Options Granted (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' |
Fair Value | $5.70 | $4.65 | $8.01 |
Tranche 1 [Member] | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' |
Price Target | ' | $10 | ' |
Fair Value | ' | $4.32 | ' |
Tranche 2 [Member] | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' |
Price Target | ' | $12.50 | ' |
Fair Value | ' | $4.30 | ' |
Tranche 3 [Member] | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' |
Price Target | ' | $15 | ' |
Fair Value | ' | $4.27 | ' |
Tranche 4 [Member] | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' |
Price Target | ' | $17.50 | ' |
Fair Value | ' | $4.23 | ' |
Tranche 5 [Member] | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' |
Price Target | ' | $20 | ' |
Fair Value | ' | $4.19 | ' |
Tranche 6 [Member] | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' |
Price Target | ' | $25 | ' |
Fair Value | ' | $4.10 | ' |
Tranche 7 [Member] | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' |
Price Target | ' | $30 | ' |
Fair Value | ' | $4.01 | ' |
Tranche 8 [Member] | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' |
Price Target | ' | $35 | ' |
Fair Value | ' | $3.92 | ' |
Tranche 9 [Member] | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' |
Price Target | ' | $40 | ' |
Fair Value | ' | $3.83 | ' |
Equity_Compensation_Plans_NonE
Equity Compensation Plans - Non-Employee Stock Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' | ' |
Nonstatutory common stock options vest period maximum | '4 years | ' | ' |
Stock options granted to non-employee consultants vesting period | '4 years | ' | ' |
Non-employee vesting stock rate | 25.00% | ' | ' |
Non-employee consultant stock options granted | 0 | ' | ' |
Stock compensation expense | $0 | $0 | $8 |
Expense (income) | 272 | -179 | -23 |
Unexercised shares of common stock held by non-employee consultants | 38 | 38 | ' |
Liability included in accrued liabilities | $350 | $78 | ' |
Recovered_Sheet6
Segment and Geographic Information - Revenue by Product (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Product Type Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | $21,884 | $20,146 | $20,429 | $19,430 | $18,364 | $16,139 | $18,268 | $17,476 | $81,889 | $70,247 | $64,402 |
Domestic [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Product Type Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 62,311 | 52,616 | 48,931 |
Domestic [Member] | Open-heart [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Product Type Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 37,843 | 32,880 | 29,202 |
Domestic [Member] | Minimally Invasive [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Product Type Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 13,648 | 12,733 | 14,166 |
Domestic [Member] | AtriClip [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Product Type Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 10,820 | 7,003 | 5,563 |
International [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Product Type Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 19,578 | 17,631 | 15,471 |
International [Member] | Open-heart [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Product Type Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 13,064 | 11,972 | 11,205 |
International [Member] | Minimally Invasive [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Product Type Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 5,354 | 4,813 | 3,824 |
International [Member] | AtriClip [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Product Type Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | $1,160 | $846 | $442 |
Recovered_Sheet7
Segment and Geographic Information - Summary of Geographic Revenue (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Information About Revenue And Geographic Areas [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | $21,884 | $20,146 | $20,429 | $19,430 | $18,364 | $16,139 | $18,268 | $17,476 | $81,889 | $70,247 | $64,402 |
United States [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Information About Revenue And Geographic Areas [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 62,311 | 52,616 | 48,931 |
Europe [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Information About Revenue And Geographic Areas [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 11,384 | 10,344 | 8,706 |
Asia [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Information About Revenue And Geographic Areas [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 7,665 | 6,730 | 6,254 |
Other International [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Information About Revenue And Geographic Areas [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | $529 | $557 | $511 |
Segment_and_Geographic_Informa2
Segment and Geographic Information - Schedule of Quarterly Financial Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating Results: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | $21,884 | $20,146 | $20,429 | $19,430 | $18,364 | $16,139 | $18,268 | $17,476 | $81,889 | $70,247 | $64,402 |
Gross profit | 15,669 | 14,685 | 15,123 | 14,086 | 13,002 | 11,549 | 12,711 | 12,752 | 59,563 | 50,014 | 46,996 |
Loss from operations | -4,838 | -2,614 | -1,639 | -1,800 | -1,852 | -2,529 | -1,320 | -1,496 | 10,891 | -7,198 | -4,731 |
Net loss | ($4,980) | ($2,748) | ($1,791) | ($1,943) | ($2,020) | ($2,567) | ($1,326) | ($1,620) | ($11,462) | ($7,534) | ($5,456) |
Net loss per share (basic and diluted) | ($0.24) | ($0.13) | ($0.09) | ($0.10) | ($0.12) | ($0.16) | ($0.08) | ($0.10) | ' | ' | ' |
Subsequent_Event_Additional_In
Subsequent Event - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 28, 2014 |
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | ' | ' | ' |
Common stock sold | ' | ' | 3,661 |
Common stock, par value | $0.00 | $0.00 | $0.00 |
Common stock, price per share | ' | ' | $19.25 |
Proceeds from issuance of common stock | $26,872 | ' | $65,937 |
Recovered_Sheet8
Valuation and Qualifying Accounts (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Allowance for doubtful accounts receivable [Member] | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Beginning Balance | $49 | $37 | $9 |
Valuation and Qualifying Accounts, Additions | 100 | 75 | 29 |
Valuation and Qualifying Accounts, Deductions | 55 | 63 | 1 |
Ending Balance | 94 | 49 | 37 |
Reserve for sales returns and allowances [Member] | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Beginning Balance | 105 | 40 | 53 |
Valuation and Qualifying Accounts, Additions | ' | 262 | 52 |
Valuation and Qualifying Accounts, Deductions | ' | 197 | 65 |
Ending Balance | 105 | 105 | 40 |
Allowance for inventory valuation [Member] | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Beginning Balance | 267 | 206 | 32 |
Valuation and Qualifying Accounts, Additions | 921 | 381 | 311 |
Valuation and Qualifying Accounts, Deductions | 406 | 320 | 137 |
Ending Balance | 782 | 267 | 206 |
Valuation allowance for deferred tax assets [Member] | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Beginning Balance | 31,685 | 29,316 | 27,312 |
Valuation and Qualifying Accounts, Additions | 22,526 | 2,369 | 2,004 |
Valuation and Qualifying Accounts, Deductions | ' | ' | ' |
Ending Balance | $54,211 | $31,685 | $29,316 |