Document_And_Entity_Informatio
Document And Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Jul. 24, 2014 | |
Document and Entity Information: [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Entity Registrant Name | 'Zeltiq Aesthetics Inc | ' |
Entity Central Index Key | '0001415336 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 37,525,554 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $20,262 | $25,798 |
Short-term investments | 18,565 | 18,840 |
Accounts receivable, net | 13,908 | 10,221 |
Inventory | 18,555 | 8,406 |
Prepaid expenses and other current assets | 2,256 | 4,368 |
Total current assets | 73,546 | 67,633 |
Long-term investments | 4,467 | 11,442 |
Restricted cash | 334 | 331 |
Property and equipment, net | 2,289 | 2,158 |
Intangible asset, net | 6,130 | 6,481 |
Other assets | 71 | 9 |
Total assets | 86,837 | 88,054 |
CURRENT LIABILITIES: | ' | ' |
Accounts payable | 3,302 | 5,165 |
Accrued liabilities | 18,519 | 18,364 |
Deferred revenue | 3,792 | 1,674 |
Total current liabilities | 25,613 | 25,203 |
Other non-current liabilities | 175 | 275 |
Total liabilities | 25,788 | 25,478 |
Commitments and contingencies | ' | ' |
STOCKHOLDERS’ EQUITY: | ' | ' |
Preferred stock, $0.01 par value: 50,000,000 shares authorized and no shares issued and outstanding at June 30, 2014, and December 31, 2013 | 0 | 0 |
Common stock, $0.001 par value: 500,000,000 shares authorized at June 30, 2014, and December 31, 2013; 37,518,121 and 37,038,374 shares issued and outstanding at June 30, 2014, and December 31, 2013, respectively | 42 | 41 |
Additional paid-in capital | 198,372 | 195,507 |
Accumulated other comprehensive income | 262 | 87 |
Accumulated deficit | -137,627 | -133,059 |
Total stockholders’ equity | 61,049 | 62,576 |
Total liabilities and stockholders’ equity | $86,837 | $88,054 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Preferred stock, par value (Per Share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (Per Share) | $0.00 | $0.00 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 37,518,121 | 37,038,374 |
Common stock, shares outstanding | 37,518,121 | 37,038,374 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Revenue | $47,061 | $26,338 | $78,036 | $46,320 |
Cost of revenue | 13,660 | 7,878 | 22,676 | 15,226 |
Gross profit | 33,401 | 18,460 | 55,360 | 31,094 |
Operating expenses: | ' | ' | ' | ' |
Research and development | 4,350 | 3,898 | 8,620 | 7,647 |
Sales and marketing | 21,052 | 14,625 | 41,239 | 27,167 |
General and administrative | 5,234 | 3,626 | 9,947 | 7,434 |
Total operating expenses | 30,636 | 22,149 | 59,806 | 42,248 |
Income (loss) from operations | 2,765 | -3,689 | -4,446 | -11,154 |
Interest income, net | 14 | 19 | 33 | 43 |
Other (expense) income, net | -83 | 106 | -149 | 72 |
Income (loss) before provision for income taxes | 2,696 | -3,564 | -4,562 | -11,039 |
(Benefit from) provision for income taxes | -73 | 43 | 6 | 50 |
Net income (loss) | $2,769 | ($3,607) | ($4,568) | ($11,089) |
Basic net income (loss) per share: | ' | ' | ' | ' |
Net income (loss) per share, basic (dollars per share) | $0.07 | ($0.10) | ($0.12) | ($0.31) |
Weighted average shares of common stock outstanding used in computing net income (loss) per share, basic (shares) | 37,440,537 | 36,045,346 | 37,328,738 | 35,968,144 |
Diluted net income (loss) per share: | ' | ' | ' | ' |
Net income (loss) per share, diluted (dollars per share) | $0.07 | ($0.10) | ($0.12) | ($0.31) |
Weighted average shares of common stock outstanding used in computing net income (loss) per share, diluted (shares) | 40,597,275 | 36,045,346 | 37,328,738 | 35,968,144 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income (loss) | $2,769 | ($3,607) | ($4,568) | ($11,089) |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' |
Foreign currency translation adjustments | 149 | 0 | 179 | 0 |
Changes in unrealized losses on available-for-sale securities | -6 | -8 | -4 | -16 |
Other comprehensive income (loss), net of tax | 143 | -8 | 175 | -16 |
Comprehensive income (loss) | $2,912 | ($3,615) | ($4,393) | ($11,105) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income (loss) | ($4,568) | ($11,089) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Depreciation and amortization | 932 | 850 |
Stock-based compensation | 4,511 | 2,599 |
Deferred income tax provision (benefit) | 38 | -20 |
Amortization (accretion) of investment premium (discount), net | 126 | 177 |
Provision for doubtful accounts receivable | 145 | -3 |
Provision for excess and obsolete inventory | 325 | 162 |
Loss on disposal and write-off of property and equipment | 17 | 2 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | -3,781 | -406 |
Inventory | -9,781 | 1,093 |
Prepaid expenses and other assets | 2,022 | 150 |
Deferred revenue, net of deferred costs | 2,099 | -268 |
Accounts payable, accrued and other non-current liabilities | -2,416 | 517 |
Net cash used in operating activities | -10,331 | -6,236 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Purchase of investments | -4,513 | -19,093 |
Proceeds from sale of investments | 1,000 | 10,550 |
Proceeds from maturity of investments | 10,634 | 13,586 |
Purchase of property and equipment | -770 | -306 |
Change in restricted cash | -1 | 145 |
Net cash provided by investing activities | 6,350 | 4,882 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Proceeds from issuance of common stock upon exercise of stock options | 1,587 | 602 |
Tax payments related to shares withheld for vested restricted stock units | -3,247 | -62 |
Tax effect of employee stock plans | 15 | 0 |
Net cash (used in) provided by financing activities | -1,645 | 540 |
Effect of exchange rate on cash and cash equivalents | 90 | 0 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | -5,536 | -814 |
CASH AND CASH EQUIVALENTS—Beginning of period | 25,798 | 22,876 |
CASH AND CASH EQUIVALENTS—End of period | $20,262 | $22,062 |
Basis_of_Presentation_and_Summ
Basis of Presentation and Summary Of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation and Summary of Significant Accounting Policies | ' |
Basis of Presentation and Summary of Significant Accounting Policies | |
Basis of Presentation | |
The accompanying interim condensed consolidated financial statements are unaudited. These interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America, or GAAP, and the applicable rules and regulations of the Securities and Exchange Commission, or SEC, for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The December 31, 2013, condensed consolidated balance sheet was derived from the audited financial statements as of that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. | |
The accompanying unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments of a normal recurring nature considered necessary to state fairly the Company's financial position as of June 30, 2014, results of operations for the three and six months ended June 30, 2014 and 2013, comprehensive loss for the three and six months ended June 30, 2014 and 2013, and cash flows for the six months ended June 30, 2014 and 2013. The interim results for the three and six months ended June 30, 2014, are not necessarily indicative of the results that may be expected for the year ending December 31, 2014, or for any other future annual or interim period. Certain amounts in the prior year's condensed consolidated statement of cash flows have been reclassified to conform to the current period's presentation. These reclassifications had no impact on previously reported consolidated balance sheets or results of consolidated statements of operations. | |
The information included in this Quarterly Report on Form 10-Q should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations", “Quantitative and Qualitative Disclosures About Market Risk” and the Consolidated Financial Statements and notes thereto included in Items 7, 7A and 8, respectively, in the Company's Annual Report on Form 10-K for the year ended December 31, 2013. | |
Principles of Consolidation | |
The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. | |
Based on an evaluation of economic facts and circumstances together with the functional currency analysis prescribed in Accounting Standards Codification Topic 830, Foreign Currency Matters, on October 1, 2013, the Company changed the functional and reporting currency of its foreign subsidiary from the U.S. Dollar to the British Pound. Such change did not have a material impact on the consolidated financial statements of the Company. | |
All assets and liabilities of these foreign operations are translated to U.S. Dollars at current period end exchange rates, and revenue and expenses are translated to U.S. Dollars using average exchange rates in effect during the period. The gains and losses from the foreign currency translation of this subsidiary's financial statements are included as a separate component of stockholders' equity under "Accumulated other comprehensive income". Gains or losses arising from currency exchange rate fluctuations on transactions denominated in a currency other than the local functional currency are included in other income (expense), net. | |
Use of Estimates | |
The preparation of financial statements in conformity with GAAP requires management to make certain 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 expenses during the reported periods. The primary estimates underlying the Company's financial statements include the value of revenue elements, product warranty, inventory valuation, allowance for doubtful accounts receivable, assumptions regarding variables used in calculating the fair value of the Company's equity awards, fair value of investments, useful lives of intangibles, income taxes and contingent liabilities. Actual results could differ from those estimates. | |
Critical Accounting Policies | |
There have been no material changes to the Company’s critical accounting policies during the six months ended June 30, 2014, as compared to the critical accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. | |
Recent Accounting Pronouncements | |
On May 28, 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update No. 2014-10, Revenue from Contracts with Customers. The objective of this update is to provide a single, comprehensive revenue recognition model for all contracts with customers to improve comparability within industries, across industries, and across capital markets. This standard update contains principles that the Company will apply to determine the measurement of revenue and timing of when it is recognized. The Company will adopt this guidance effective January 1, 2017, and is currently assessing the impact it may have on the Company's consolidated financial statements. |
Fair_Value_Of_Financial_Instru
Fair Value Of Financial Instruments | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The accounting guidance establishes a three-tiered hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: | ||||||||||||||||
•Level 1—Quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||
•Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as 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. | ||||||||||||||||
•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. The Company did not hold any Level 3 assets or liabilities at June 30, 2014. | ||||||||||||||||
The categorization of a financial instrument within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. | ||||||||||||||||
The Company classifies its cash equivalents and investments within Level 1 and Level 2, as it uses quoted market prices or alternative pricing sources and models utilizing market observable inputs. The following tables set forth the fair value of the Company’s financial assets and liabilities by level within the fair value hierarchy (in thousands): | ||||||||||||||||
As of June 30, 2014 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||
Financial Assets | ||||||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 4,092 | $ | — | $ | — | $ | 4,092 | ||||||||
Short-term investments: | ||||||||||||||||
U.S. Agency securities | — | 9,217 | — | 9,217 | ||||||||||||
U.S. Treasury | — | 2,010 | — | 2,010 | ||||||||||||
Corporate bonds | — | 5,020 | — | 5,020 | ||||||||||||
Commercial paper | — | 1,000 | — | 1,000 | ||||||||||||
Certificates of deposit | 1,318 | — | — | 1,318 | ||||||||||||
Long-term investments: | ||||||||||||||||
U.S. Agency securities | — | 500 | — | 500 | ||||||||||||
U.S. Treasury | — | 501 | — | 501 | ||||||||||||
Corporate bonds | — | 3,020 | — | 3,020 | ||||||||||||
Certificates of deposit | 446 | — | — | 446 | ||||||||||||
Total | $ | 5,856 | $ | 21,268 | $ | — | $ | 27,124 | ||||||||
As of December 31, 2013 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||
Financial Assets | ||||||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 12,796 | $ | — | $ | — | $ | 12,796 | ||||||||
Short-term investments: | ||||||||||||||||
U.S. Agency securities | — | 6,772 | — | 6,772 | ||||||||||||
U.S. Treasury | — | 1,001 | — | 1,001 | ||||||||||||
Corporate bonds | — | 8,870 | — | 8,870 | ||||||||||||
Commercial paper | — | 999 | — | 999 | ||||||||||||
Certificates of deposit | 1,198 | — | — | 1,198 | ||||||||||||
Long-term investments: | ||||||||||||||||
U.S. Agency securities | — | 6,956 | — | 6,956 | ||||||||||||
U.S. Treasury | — | 1,014 | — | 1,014 | ||||||||||||
Corporate bonds | — | 2,795 | — | 2,795 | ||||||||||||
Certificates of deposit | 677 | — | — | 677 | ||||||||||||
Total | $ | 14,671 | $ | 28,407 | $ | — | $ | 43,078 | ||||||||
During the three and six months ended June 30, 2014 and 2013, the Company did not have any transfers of financial assets measured at fair value on a recurring basis to or from Level 1, Level 2 or Level 3. The Company did not hold any Level 3 assets or liabilities as of June 30, 2014, and December 31, 2013. | ||||||||||||||||
The carrying amounts of the Company’s cash equivalents, accounts receivable, accounts payable and accrued liabilities, approximate fair value due to their relatively short maturities. |
Balance_Sheet_Components
Balance Sheet Components | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Balance Sheet Related Disclosures [Abstract] | ' | |||||||||||||||
Balance Sheet Components | ' | |||||||||||||||
Balance Sheet Components | ||||||||||||||||
Investments | ||||||||||||||||
The Company's short-term and long-term investments as of June 30, 2014, are as follows (in thousands): | ||||||||||||||||
Short-term | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
U.S. Agency securities | $ | 9,213 | $ | 4 | $ | — | $ | 9,217 | ||||||||
U.S. Treasury | 2,008 | 2 | — | 2,010 | ||||||||||||
Corporate bonds | 5,019 | 2 | (1 | ) | 5,020 | |||||||||||
Commercial paper | 1,000 | — | — | 1,000 | ||||||||||||
Certificates of deposit | 1,318 | — | — | 1,318 | ||||||||||||
Total | $ | 18,558 | $ | 8 | $ | (1 | ) | $ | 18,565 | |||||||
Long-term | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
U.S. Agency securities | $ | 499 | $ | 1 | $ | — | $ | 500 | ||||||||
U.S. Treasury | 500 | 1 | — | 501 | ||||||||||||
Corporate bonds | 3,023 | 2 | (5 | ) | 3,020 | |||||||||||
Certificates of deposit | 446 | — | — | 446 | ||||||||||||
Total | $ | 4,468 | $ | 4 | $ | (5 | ) | $ | 4,467 | |||||||
The Company's short-term and long-term investments as of December 31, 2013, are as follows (in thousands): | ||||||||||||||||
Short-term | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
U.S. Agency securities | $ | 6,771 | $ | 2 | $ | (1 | ) | $ | 6,772 | |||||||
U.S. Treasury | 1,000 | 1 | — | 1,001 | ||||||||||||
Corporate bonds | 8,867 | 3 | — | 8,870 | ||||||||||||
Commercial paper | 999 | — | — | 999 | ||||||||||||
Certificates of deposit | 1,198 | — | — | 1,198 | ||||||||||||
Total | $ | 18,835 | $ | 6 | $ | (1 | ) | $ | 18,840 | |||||||
Long-term | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
U.S. Agency securities | $ | 6,957 | $ | 2 | $ | (3 | ) | $ | 6,956 | |||||||
U.S. Treasury | 1,013 | 1 | — | 1,014 | ||||||||||||
Corporate bonds | 2,790 | 5 | — | 2,795 | ||||||||||||
Certificates of deposit | 677 | — | — | 677 | ||||||||||||
Total | $ | 11,437 | $ | 8 | $ | (3 | ) | $ | 11,442 | |||||||
For each of the three and six months ended June 30, 2014 and 2013, gains or losses realized on the sale of investments were insignificant. | ||||||||||||||||
The contractual maturities of the Company's short-term and long-term investments as of June 30, 2014, are as follows (in thousands): | ||||||||||||||||
June 30, 2014 | ||||||||||||||||
Amortized Cost | Fair Value | |||||||||||||||
Due in one year or less | $ | 18,558 | $ | 18,565 | ||||||||||||
Due in one year to five years | 4,468 | 4,467 | ||||||||||||||
$ | 23,026 | $ | 23,032 | |||||||||||||
When evaluating the investments for other-than-temporary impairment, the Company reviews factors such as the length of time and extent to which fair value has been below the amortized cost basis, review of current market liquidity, interest rate risk, the financial condition of the issuer, as well as credit rating downgrades. The Company believes that the unrealized losses are not other-than-temporary. The Company does not have a foreseeable need to liquidate the portfolio and anticipates recovering the full cost of the securities either as market conditions improve, or as the securities mature. | ||||||||||||||||
Inventory | ||||||||||||||||
Inventory is stated at the lower of cost (which approximates actual cost on a first-in, first-out basis) or market, computed on a standard cost basis. Inventory that is obsolete or in excess of forecasted usage is written down to its estimated net realizable value based on assumptions about future demand and market conditions. | ||||||||||||||||
The components of inventory consist of the following (in thousands): | ||||||||||||||||
June 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Raw materials | $ | 11,688 | $ | 4,520 | ||||||||||||
Finished goods | 6,867 | 3,886 | ||||||||||||||
Total inventory | $ | 18,555 | $ | 8,406 | ||||||||||||
Property and equipment, net | ||||||||||||||||
Property and equipment, net comprised the following (in thousands): | ||||||||||||||||
June 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Lab equipment, tooling and molds | $ | 2,356 | $ | 2,071 | ||||||||||||
Computer software | 1,754 | 1,562 | ||||||||||||||
Computer equipment | 827 | 801 | ||||||||||||||
Leasehold improvements | 980 | 743 | ||||||||||||||
Furniture and fixtures | 402 | 334 | ||||||||||||||
Vehicles | 35 | 35 | ||||||||||||||
Total property and equipment | 6,354 | 5,546 | ||||||||||||||
Less: Accumulated depreciation and amortization | (4,178 | ) | (3,594 | ) | ||||||||||||
Construction in progress | 113 | 206 | ||||||||||||||
Property and equipment, net | $ | 2,289 | $ | 2,158 | ||||||||||||
Depreciation expense was $0.3 million and $0.6 million for the three and six months ended June 30, 2014, respectively. Depreciation expense was $0.2 million and $0.5 million for the three and six months ended June 30, 2013, respectively. | ||||||||||||||||
Accrued Liabilities | ||||||||||||||||
The following table shows the components of accrued liabilities (in thousands): | ||||||||||||||||
June 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Accrued payroll and employee related expenses | $ | 7,530 | $ | 7,863 | ||||||||||||
Accrued marketing expenses | 2,039 | 3,739 | ||||||||||||||
Accrued royalty | 3,312 | 2,458 | ||||||||||||||
Sales and other taxes payable | 1,584 | 1,787 | ||||||||||||||
Accrued warranty | 741 | 676 | ||||||||||||||
Accrued legal expenses | 645 | 284 | ||||||||||||||
Other accrued liabilities | 2,668 | 1,557 | ||||||||||||||
Total accrued liabilities | $ | 18,519 | $ | 18,364 | ||||||||||||
Product Warranty | ||||||||||||||||
The Company provides a standard limited warranty on its products of generally one year for both control units and applicators for its direct customers. For indirect customers in international markets, the Company provides a standard limited warranty on its products of generally three years for control units and one year for applicators. | ||||||||||||||||
The Company accrues for the estimated future costs of repair or replacement upon shipment. The warranty accrual is recorded to cost of revenue and is based upon historical and forecasted trends in the volume of product failures during the warranty period and the cost to repair or replace the equipment. The Company bases product warranty costs on related freight, material, technical support labor and overhead costs. The estimated product warranty costs are assessed by considering historical costs and applying the experienced failure rates to the outstanding warranty period for products sold. The Company exercises judgment in estimating the expected product warranty costs, using data such as the actual and projected product failure rates, and average repair costs, including freight, material, technical support labor, and overhead costs, for products returned under warranty. | ||||||||||||||||
The estimated product warranty accrual was as follows (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Balance at the beginning of the period | $ | 660 | $ | 742 | $ | 676 | $ | 902 | ||||||||
Accruals for warranties issued | 159 | 55 | 198 | 97 | ||||||||||||
Settlements of warranty claims | (78 | ) | (71 | ) | (133 | ) | (273 | ) | ||||||||
Balance at the end of the period | $ | 741 | $ | 726 | $ | 741 | $ | 726 | ||||||||
Intangible_Asset_Net
Intangible Asset, Net | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Intangible Asset, Net | ' | |||||||
Intangible Asset, Net | ||||||||
The intangible asset consists of an exclusive license agreement with Massachusetts General Hospital, or MGH, for commercializing patents and other technology. All milestone payments payable by the Company pursuant to the terms of the agreement subsequent to the date of the Food and Drug Administration, or FDA, approval are capitalized as purchased technology when paid, and are subsequently amortized into cost of revenue using the straight-line method over the estimated remaining useful life of the technology, not to exceed the term of the agreement or the life of the patent. | ||||||||
Intangible asset, net comprised the following (in thousands): | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
Purchased technology | $ | 8,050 | $ | 8,050 | ||||
Less: Accumulated amortization | (1,920 | ) | (1,569 | ) | ||||
Intangible asset, net | $ | 6,130 | $ | 6,481 | ||||
Amortization expense of the intangible asset was $0.2 million and $0.4 million for both the three and six months ended June 30, 2014 and 2013, respectively. | ||||||||
The total estimated annual future amortization expense of this intangible asset as of June 30, 2014, is as follows (in thousands): | ||||||||
Fiscal Year | ||||||||
2014 (remaining 6 months) | $ | 349 | ||||||
2015 | 701 | |||||||
2016 | 701 | |||||||
2017 | 701 | |||||||
2018 | 701 | |||||||
Thereafter | 2,977 | |||||||
Total | $ | 6,130 | ||||||
Related_Party_Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
Related Party Transactions | |
Brazilian Distribution Agreement | |
The Company entered into a distribution agreement with ADVANCE Medical, Inc. and its wholly-owned subsidiaries, or ADVANCE, dated March 18, 2011, and amended on February 27, 2012, and September 4, 2012, appointing ADVANCE as the exclusive distributor of CoolSculpting in Brazil and Mexico. ADVANCE is required to purchase a minimum quantity of the Company’s products each calendar quarter throughout the term of the distribution agreement which expires on December 31, 2018. Venrock, a principal stockholder of the Company, owns an equity interest in ADVANCE Medical, Ltd., the parent company of ADVANCE. Dr. Bryan E. Roberts, who is a member of the Company's Board of Directors, is also a partner of Venrock Associates. The revenue recognized by the Company under this distribution agreement was $0.1 million and $1.1 million for the three and six months ended June 30, 2014, respectively, compared to $0.5 million and $0.8 million for the three and six months ended June 30, 2013, respectively. The accounts receivable balance under this distribution agreement was $0.3 million and $0.2 million as of June 30, 2014, and December 31, 2013, respectively. |
Commitments_And_Contingencies
Commitments And Contingencies | 6 Months Ended | |||
Jun. 30, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Commitments and Contingencies | ' | |||
Commitments and Contingencies | ||||
Lease Commitments | ||||
The Company recently renewed and extended its leases in California. Specifically, the Company occupies a facility in Pleasanton, California, under a lease which extends through March 2019, a manufacturing facility in Dublin, California, under a lease which extends through December 2015, and a warehouse space in Livermore, California, under a lease which extends through December 2015. The Company also occupies office and warehouse space in Gatwick, United Kingdom, under a lease which extends through December 2018, as well as office space in Taipei, Taiwan, under a lease which extends through August 2014, and Seoul, South Korea, under a lease which extends through October 2014. Rent expense for non-cancellable operating leases with scheduled rent increases is recognized on a straight-line basis over the lease term. Rent expense was $0.4 million and $0.7 million for the three and six months ended June 30, 2014, respectively, compared to $0.3 million and $0.7 million for the three and six months ended June 30, 2013, respectively. | ||||
Future minimum lease payments under the non-cancellable operating leases as of June 30, 2014, are as follows (in thousands): | ||||
Year Ending December 31, | Amount | |||
2014 (remaining 6 months) | $ | 670 | ||
2015 | 1,696 | |||
2016 | 1,467 | |||
2017 | 1,512 | |||
2018 | 1,551 | |||
Thereafter | 383 | |||
Total future minimum lease payments | $ | 7,279 | ||
Purchase Commitments | ||||
The Company had non-cancellable purchase obligations to contract manufacturers and suppliers for $3.2 million and $6.0 million at June 30, 2014, and December 31, 2013, respectively. | ||||
Unrecognized Tax Benefits | ||||
The Company's gross liability for unrecognized tax benefits totaled $11,000, including estimated interest and penalties, as of June 30, 2014, and is classified in long-term income taxes payable. The Company is unable to make a reasonably reliable estimate of the timing of payments in individual years due to uncertainties in the timing of tax audits, if any, or their outcomes. | ||||
Legal Matters | ||||
From time to time, the Company may be involved in legal and administrative proceedings and claims of various types. The Company records a liability in its consolidated financial statements for these matters when a loss is known and considered probable and the amount can be reasonably estimated. Management reviews these estimates in each accounting period as additional information becomes known and adjusts the loss provision when appropriate. If the loss is not probable or cannot be reasonably estimated, a liability is not recorded in the consolidated financial statements. If a loss is probable but the amount of loss cannot be reasonably estimated, the Company discloses the loss contingency and an estimate of possible loss or range of loss (unless such an estimate cannot be made). The Company does not recognize gain contingencies until they are realized. Legal costs incurred in connection with loss contingencies are expensed as incurred. | ||||
Indemnifications | ||||
In the normal course of business, the Company enters into contracts that contain a variety of representations and warranties and provide for general indemnifications. The Company's exposure under these agreements is unknown because it involves claims that may be made against the Company in the future, but have not yet been made. To date, the Company has not paid any claims, and the Company believes that the estimated fair value of these indemnification obligations is minimal and it has not accrued any amounts for these obligations. | ||||
Severance and Separation Agreements | ||||
Effective December 3, 2013, the Company's Chief Scientific Officer and Senior Vice President of Clinical entered into a separation agreement with the Company. As a result of this separation agreement, the Company incurred $0.3 million in termination benefits and $0.7 million in costs related to the modification of the employee's stock-based compensation, which were recorded during the year ended December 31, 2013. The amount outstanding related to this separation agreement was $0.1 million as of June 30, 2014. | ||||
No similar costs were incurred during the three and six months ended June 30, 2014 and 2013. |
StockBased_Compensation_Expens
Stock-Based Compensation Expense | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Stock-Based Compensation Expense | ' | |||||||||||||||
Stock-Based Compensation Expense | ||||||||||||||||
Stock-Based Compensation Activity | ||||||||||||||||
Activity under the Company’s stock-based compensation plans is set forth below: | ||||||||||||||||
Options Outstanding | ||||||||||||||||
Shares | Number of | Weighted- | ||||||||||||||
Available | Stock Options | Average | ||||||||||||||
for Grant | Outstanding | Exercise | ||||||||||||||
Price | ||||||||||||||||
Balance, December 31, 2013 | 1,086,737 | 3,598,385 | $ | 5.36 | ||||||||||||
Additional shares reserved | 1,851,794 | — | — | |||||||||||||
Options granted | (255,000 | ) | 255,000 | 18.42 | ||||||||||||
Restricted stock units granted | (379,175 | ) | — | — | ||||||||||||
Options exercised | — | (176,239 | ) | 4.67 | ||||||||||||
Options canceled | 13,543 | (13,543 | ) | 4.8 | ||||||||||||
Restricted stock units canceled | 90,212 | — | — | |||||||||||||
Restricted stock units withheld for tax | 176,854 | — | — | |||||||||||||
Balance, June 30, 2014 | 2,584,965 | 3,663,603 | $ | 6.31 | ||||||||||||
Restricted Stock Activity | ||||||||||||||||
Activity related to restricted stock units and awards is set forth below: | ||||||||||||||||
Number of Units and Awards | Weighted- | |||||||||||||||
Average | ||||||||||||||||
Grant Date Fair Value | ||||||||||||||||
Balance, December 31, 2013 | 1,906,696 | $ | 5.6 | |||||||||||||
Restricted stock units granted | 379,175 | 18.26 | ||||||||||||||
Restricted stock units released | (429,158 | ) | 5.27 | |||||||||||||
Restricted stock units canceled | (90,212 | ) | 5.76 | |||||||||||||
Balance, June 30, 2014 | 1,766,501 | $ | 8.39 | |||||||||||||
During the three and six months ended June 30, 2014, 109,576 and 429,158 shares vested, respectively, subject to previously granted restricted stock units. A majority of these vested restricted stock units were net share settled. During the three and six months ended June 30, 2014, the Company withheld 42,018 and 176,854 shares, respectively, based upon the Company's closing stock price on the vesting date to settle the employee's minimum statutory obligation for the applicable income and other employment taxes. During the three and six months ended June 30, 2013, 40,838 and 67,999 shares vested, respectively, subject to previously granted restricted stock units. A majority of these vested restricted stock units were net share settled. During the three and six months ended June 30, 2013, the Company withheld 13,735 and 15,705 shares, respectively, based upon the Company's closing stock price on the vesting date to settle the employee's minimum statutory obligation for the applicable income and other employment taxes. | ||||||||||||||||
Subsequently, the Company remitted cash to the appropriate taxing authorities. Total payments for employee's tax obligations to the relevant taxing authority were $0.7 million and $3.2 million for the three and six months ended June 30, 2014, respectively. Total payments for employee's tax obligations to the relevant taxing authority were $55,000 and $62,000 for the three and six months ended June 30, 2013, respectively. The payments were for taxes related to the net share settlements of restricted stock units. | ||||||||||||||||
Stock-Based Compensation Expense | ||||||||||||||||
Stock-based compensation expense related to all of the Company's stock-based awards and employee stock purchases was allocated as follows (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Cost of revenue | $ | 117 | $ | 62 | $ | 210 | $ | 108 | ||||||||
Research and development | 263 | 225 | 469 | 423 | ||||||||||||
Sales and marketing | 998 | 486 | 1,934 | 659 | ||||||||||||
General and administrative | 1,028 | 707 | 1,898 | 1,409 | ||||||||||||
Total stock-based compensation | $ | 2,406 | $ | 1,480 | $ | 4,511 | $ | 2,599 | ||||||||
As of June 30, 2014, the total unrecognized compensation costs related to outstanding stock options, awards and employee stock purchases was $16.5 million, which is expected to be recognized using the straight-line attribution method over 2.3 years. | ||||||||||||||||
Performance-Based Awards | ||||||||||||||||
Stock-based compensation expense includes charges related to performance-based stock options and restricted stock units granted to certain executives. Stock-based compensation expense related to these stock options and restricted stock units was $0.5 million and $1.0 million for the three and six months ended June 30, 2014, respectively, compared to $0.3 million and $0.5 million for the three and six months ended June 30, 2013, respectively. | ||||||||||||||||
Employee Stock–Based Compensation | ||||||||||||||||
Stock-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as expense on a straight-line basis over the requisite service period. The fair value of stock-based awards to employees is estimated using the Black-Scholes option pricing model. The Company estimates its forfeiture rate based on an analysis of its actual forfeitures and will continue to evaluate the adequacy of the forfeiture rate assumption based on actual forfeitures, analysis of employee turnover, and other related factors. | ||||||||||||||||
The fair value of employee stock options was estimated using the following weighted-average assumptions: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Expected term (in years) | 4.4 | 4.8 | 4.4 | 4.8 | ||||||||||||
Expected volatility | 43 | % | 52 | % | 43 | % | 52 | % | ||||||||
Risk-free interest rate | 1.3 | % | 0.9 | % | 1.21 | % | 0.91 | % | ||||||||
Expected dividend yield | — | % | — | % | — | % | — | % | ||||||||
During the three and six months ended June 30, 2014, the Company granted 180,000 and 250,000 stock options, respectively, to employees with a weighted-average grant date fair value of $6.42 and $6.77 per share, respectively. During the three and six months ended June 30, 2013, the Company granted 285,000 and 375,000 stock options, respectively, to employees with a weighted-average grant date fair value of $2.33 and $2.20 per share, respectively. | ||||||||||||||||
During the three and six months ended June 30, 2014, the Company granted 185,375 and 369,175 restricted stock units, respectively, to employees with a weighted-average grant date fair value of $15.79 and $18.28 per share, respectively. During the three and six months ended June 30, 2013, the Company granted 198,950 and 953,000 restricted stock units, respectively, to employees with a weighted-average grant date fair value of $4.71 and $4.15 per share, respectively. | ||||||||||||||||
As of June 30, 2014, the unrecognized compensation cost related to the Company's employee stock purchase plan, or ESPP, was $0.3 million, which will be recognized using the straight-line attribution method over 0.4 years. | ||||||||||||||||
Stock-Based Compensation for Non-employees | ||||||||||||||||
Stock-based compensation expense related to stock-based awards to non-employees is recognized as the stock-based awards are earned, generally through the provision of services. The Company believes that the fair value of the stock-based awards is more reliably measurable than the fair value of the services received. The fair value of the granted stock-based awards is calculated at each reporting date using the Black-Scholes option pricing model. During the year ended December 31, 2013, the Company granted stock-based awards to a non-employee which vest over 2 years. Additionally, during the three months ended March 31, 2014, the Company granted additional stock-based awards to a non-employee which will vest over 2 years. Stock-based compensation expense related to non-employee grants was $21,000 and $0.1 million for the three and six months ended June 30, 2014, respectively. Stock-based compensation expense for non-employees was $0.1 million for both the three and six months ended June 30, 2013. |
Net_Income_Loss_Per_Share_of_C
Net Income (Loss) Per Share of Common Stock | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Net Income (Loss) Per Share of Common Stock | ' | |||||||||||||||
Net Income (Loss) per Share of Common Stock | ||||||||||||||||
Basic net income (loss) per share of common stock is calculated by dividing the net income (loss) by the weighted-average number of shares of common stock outstanding for the period. Diluted net income (loss) per share of common stock is computed by giving effect to all potentially dilutive securities outstanding during the period, including stock options, restricted stock units and common stock issuable pursuant to the ESPP. | ||||||||||||||||
A reconciliation of the numerator and denominator used in the calculation of the basic and diluted net loss per share is as follows: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Numerator | ||||||||||||||||
Net income (loss) (in thousands) | $ | 2,769 | $ | (3,607 | ) | $ | (4,568 | ) | $ | (11,089 | ) | |||||
Denominator | ||||||||||||||||
Weighted average shares of common stock outstanding used in computing net income (loss) per share, basic | 37,440,537 | 36,045,346 | 37,328,738 | 35,968,144 | ||||||||||||
Dilutive effect of incremental shares and share equivalents | 3,156,738 | — | — | — | ||||||||||||
Weighted average shares of common stock outstanding used in computing net income (loss) per share, diluted | 40,597,275 | 36,045,346 | 37,328,738 | 35,968,144 | ||||||||||||
Net income (loss) per share: | ||||||||||||||||
Net income (loss) per share, basic | $ | 0.07 | $ | (0.10 | ) | $ | (0.12 | ) | $ | (0.31 | ) | |||||
Net income (loss) per share, diluted | $ | 0.07 | $ | (0.10 | ) | $ | (0.12 | ) | $ | (0.31 | ) | |||||
The following outstanding potentially dilutive securities were excluded from the computation of diluted net income (loss) per share of common stock for the periods presented, because including them would have been anti-dilutive: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Options to purchase common stock | 188,297 | 3,204,054 | 3,663,603 | 3,160,424 | ||||||||||||
Restricted stock units | 141,871 | 149,441 | 1,766,501 | 189,380 | ||||||||||||
Common stock issuable pursuant to the ESPP | — | — | 2,633 | — | ||||||||||||
Total | 330,168 | 3,353,495 | 5,432,737 | 3,349,804 | ||||||||||||
Income_Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
The Company recorded a (benefit from) provision for income taxes of $(0.1) million and $6,000 for the three and six months ended June 30, 2014, respectively, compared to an income tax provision of $43,000 and $0.1 million for the three and six months ended June 30, 2013, respectively. The (benefit from) provision for income taxes for the three and six months ended June 30, 2014 and 2013, reflects the mixture and distribution of pre-tax income in the Company's operating jurisdictions. The Company continues to maintain a valuation allowance for its U.S. federal and state deferred tax assets. | |
At June 30, 2014, the Company had $1.2 million of unrecognized tax benefits, of which $8,000, if recognized, would affect the effective tax rate due to the valuation allowance that currently offsets deferred tax assets. During the quarter, the Company revised its estimate of previously unrecognized tax benefits by $1.7 million for credits more likely than not to be realized as a result of | |
the completion of an analysis of the deferred tax assets related to research and development credits. Such deferred tax assets continue to have a full valuation allowance, therefore such release did not affect the Company’s consolidated balance sheet or statement of operations. The Company recognizes interest and penalties related to uncertain tax positions as part of the income tax provision. To date, such interest and penalties have not been material. | |
The utilization of the net operating loss ("NOL") carryforwards is subject to annual limitations under Section 382 of the Internal Revenue Code. Section 382 imposes limitations on a corporation’s ability to utilize its NOL carryforwards if it experiences an “ownership change.” In general terms, an ownership change results from transactions increasing the ownership of certain stockholders in the stock of a corporation by more than 50% over a three-year period. Once an ownership change is deemed to have occurred under Section 382, a limitation on the annual utilization of NOL carryforwards is imposed and, therefore, a portion of the tax loss carryforwards would be subject to the limitation under Section 382. The Company assessed the application of Section 382 during the first quarter of 2014 and concluded that an ownership change had occurred. The annual limitations under Section 382 are not expected to adversely impact the Company's ability to utilize its net operating losses prior to their expiration. | |
The Company files annual income tax returns in multiple taxing jurisdictions around the world, including the U.S. federal jurisdiction, California and the United Kingdom. A number of years may elapse before an uncertain tax position is audited and finally resolved. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, the Company believes that its reserves for income taxes reflect the most likely outcome. The Company adjusts these reserves, as well as the related interest, in light of changing facts and circumstances. Settlement of any particular position could require the use of cash. As of June 30, 2014, changes to the Company's uncertain tax positions in the next 12 months that are reasonably possible are not expected to have a significant impact on the Company's financial position or results of operations. |
Segment_Information
Segment Information | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Segment Information | ' | |||||||||||||||
Segment Information | ||||||||||||||||
Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision making group, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is its Chief Executive Officer. The Company has one business activity and there are no segment managers who are held accountable for operations. Accordingly, the Company has a single reportable segment structure. All of the Company’s principal operations and decision-making functions are located in the United States. | ||||||||||||||||
The Company’s revenue by geographic region, based on the location to where the product was shipped, is summarized as follows (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
North America | $ | 37,077 | $ | 21,178 | $ | 59,864 | $ | 37,795 | ||||||||
International | 9,984 | 5,160 | 18,172 | 8,525 | ||||||||||||
Total | $ | 47,061 | $ | 26,338 | $ | 78,036 | $ | 46,320 | ||||||||
North America includes the United States and related territories, as well as Canada. International is the rest of the world. Revenue for the United States was $34.9 million and $55.8 million for the three and six months ended June 30, 2014, respectively, compared to $19.9 million and $35.9 million for the three and six months ended June 30, 2013, respectively. | ||||||||||||||||
The following table sets forth revenue by product expressed as dollar amounts (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
System revenue | $ | 25,383 | $ | 12,978 | $ | 39,844 | $ | 24,050 | ||||||||
Consumable revenue | 21,678 | 13,360 | 38,192 | 22,270 | ||||||||||||
Total | $ | 47,061 | $ | 26,338 | $ | 78,036 | $ | 46,320 | ||||||||
Substantially all of the Company’s long-lived assets are located in the United States of America. |
Basis_of_Presentation_and_Summ1
Basis of Presentation and Summary Of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The accompanying interim condensed consolidated financial statements are unaudited. These interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America, or GAAP, and the applicable rules and regulations of the Securities and Exchange Commission, or SEC, for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The December 31, 2013, condensed consolidated balance sheet was derived from the audited financial statements as of that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. | |
The accompanying unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments of a normal recurring nature considered necessary to state fairly the Company's financial position as of June 30, 2014, results of operations for the three and six months ended June 30, 2014 and 2013, comprehensive loss for the three and six months ended June 30, 2014 and 2013, and cash flows for the six months ended June 30, 2014 and 2013. The interim results for the three and six months ended June 30, 2014, are not necessarily indicative of the results that may be expected for the year ending December 31, 2014, or for any other future annual or interim period. Certain amounts in the prior year's condensed consolidated statement of cash flows have been reclassified to conform to the current period's presentation. These reclassifications had no impact on previously reported consolidated balance sheets or results of consolidated statements of operations. | |
The information included in this Quarterly Report on Form 10-Q should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations", “Quantitative and Qualitative Disclosures About Market Risk” and the Consolidated Financial Statements and notes thereto included in Items 7, 7A and 8, respectively, in the Company's Annual Report on Form 10-K for the year ended December 31, 2013. | |
Principles of Consolidation | ' |
Principles of Consolidation | |
The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. | |
Foreign Currency | ' |
Based on an evaluation of economic facts and circumstances together with the functional currency analysis prescribed in Accounting Standards Codification Topic 830, Foreign Currency Matters, on October 1, 2013, the Company changed the functional and reporting currency of its foreign subsidiary from the U.S. Dollar to the British Pound. Such change did not have a material impact on the consolidated financial statements of the Company. | |
All assets and liabilities of these foreign operations are translated to U.S. Dollars at current period end exchange rates, and revenue and expenses are translated to U.S. Dollars using average exchange rates in effect during the period. The gains and losses from the foreign currency translation of this subsidiary's financial statements are included as a separate component of stockholders' equity under "Accumulated other comprehensive income". Gains or losses arising from currency exchange rate fluctuations on transactions denominated in a currency other than the local functional currency are included in other income (expense), net. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of financial statements in conformity with GAAP requires management to make certain 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 expenses during the reported periods. The primary estimates underlying the Company's financial statements include the value of revenue elements, product warranty, inventory valuation, allowance for doubtful accounts receivable, assumptions regarding variables used in calculating the fair value of the Company's equity awards, fair value of investments, useful lives of intangibles, income taxes and contingent liabilities. Actual results could differ from those estimates. | |
Critical Accounting Policies | ' |
Critical Accounting Policies | |
There have been no material changes to the Company’s critical accounting policies during the six months ended June 30, 2014, as compared to the critical accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
On May 28, 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update No. 2014-10, Revenue from Contracts with Customers. The objective of this update is to provide a single, comprehensive revenue recognition model for all contracts with customers to improve comparability within industries, across industries, and across capital markets. This standard update contains principles that the Company will apply to determine the measurement of revenue and timing of when it is recognized. The Company will adopt this guidance effective January 1, 2017, and is currently assessing the impact it may have on the Company's consolidated financial statements. | |
Fair Value of Financial Instruments | ' |
Fair Value of Financial Instruments | |
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The accounting guidance establishes a three-tiered hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: | |
•Level 1—Quoted prices in active markets for identical assets or liabilities. | |
•Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as 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. | |
•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. The Company did not hold any Level 3 assets or liabilities at June 30, 2014. | |
The categorization of a financial instrument within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. | |
The Company classifies its cash equivalents and investments within Level 1 and Level 2, as it uses quoted market prices or alternative pricing sources and models utilizing market observable inputs. | |
Inventory | ' |
Inventory | |
Inventory is stated at the lower of cost (which approximates actual cost on a first-in, first-out basis) or market, computed on a standard cost basis. Inventory that is obsolete or in excess of forecasted usage is written down to its estimated net realizable value based on assumptions about future demand and market conditions. |
Fair_Value_Of_Financial_Instru1
Fair Value Of Financial Instruments (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair value of financial assets and liabilities by level within fair value hierarchy | ' | |||||||||||||||
The following tables set forth the fair value of the Company’s financial assets and liabilities by level within the fair value hierarchy (in thousands): | ||||||||||||||||
As of June 30, 2014 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||
Financial Assets | ||||||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 4,092 | $ | — | $ | — | $ | 4,092 | ||||||||
Short-term investments: | ||||||||||||||||
U.S. Agency securities | — | 9,217 | — | 9,217 | ||||||||||||
U.S. Treasury | — | 2,010 | — | 2,010 | ||||||||||||
Corporate bonds | — | 5,020 | — | 5,020 | ||||||||||||
Commercial paper | — | 1,000 | — | 1,000 | ||||||||||||
Certificates of deposit | 1,318 | — | — | 1,318 | ||||||||||||
Long-term investments: | ||||||||||||||||
U.S. Agency securities | — | 500 | — | 500 | ||||||||||||
U.S. Treasury | — | 501 | — | 501 | ||||||||||||
Corporate bonds | — | 3,020 | — | 3,020 | ||||||||||||
Certificates of deposit | 446 | — | — | 446 | ||||||||||||
Total | $ | 5,856 | $ | 21,268 | $ | — | $ | 27,124 | ||||||||
As of December 31, 2013 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||
Financial Assets | ||||||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 12,796 | $ | — | $ | — | $ | 12,796 | ||||||||
Short-term investments: | ||||||||||||||||
U.S. Agency securities | — | 6,772 | — | 6,772 | ||||||||||||
U.S. Treasury | — | 1,001 | — | 1,001 | ||||||||||||
Corporate bonds | — | 8,870 | — | 8,870 | ||||||||||||
Commercial paper | — | 999 | — | 999 | ||||||||||||
Certificates of deposit | 1,198 | — | — | 1,198 | ||||||||||||
Long-term investments: | ||||||||||||||||
U.S. Agency securities | — | 6,956 | — | 6,956 | ||||||||||||
U.S. Treasury | — | 1,014 | — | 1,014 | ||||||||||||
Corporate bonds | — | 2,795 | — | 2,795 | ||||||||||||
Certificates of deposit | 677 | — | — | 677 | ||||||||||||
Total | $ | 14,671 | $ | 28,407 | $ | — | $ | 43,078 | ||||||||
Balance_Sheet_Components_Table
Balance Sheet Components (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Balance Sheet Related Disclosures [Abstract] | ' | |||||||||||||||
Schedule of Investments | ' | |||||||||||||||
The Company's short-term and long-term investments as of June 30, 2014, are as follows (in thousands): | ||||||||||||||||
Short-term | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
U.S. Agency securities | $ | 9,213 | $ | 4 | $ | — | $ | 9,217 | ||||||||
U.S. Treasury | 2,008 | 2 | — | 2,010 | ||||||||||||
Corporate bonds | 5,019 | 2 | (1 | ) | 5,020 | |||||||||||
Commercial paper | 1,000 | — | — | 1,000 | ||||||||||||
Certificates of deposit | 1,318 | — | — | 1,318 | ||||||||||||
Total | $ | 18,558 | $ | 8 | $ | (1 | ) | $ | 18,565 | |||||||
Long-term | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
U.S. Agency securities | $ | 499 | $ | 1 | $ | — | $ | 500 | ||||||||
U.S. Treasury | 500 | 1 | — | 501 | ||||||||||||
Corporate bonds | 3,023 | 2 | (5 | ) | 3,020 | |||||||||||
Certificates of deposit | 446 | — | — | 446 | ||||||||||||
Total | $ | 4,468 | $ | 4 | $ | (5 | ) | $ | 4,467 | |||||||
The Company's short-term and long-term investments as of December 31, 2013, are as follows (in thousands): | ||||||||||||||||
Short-term | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
U.S. Agency securities | $ | 6,771 | $ | 2 | $ | (1 | ) | $ | 6,772 | |||||||
U.S. Treasury | 1,000 | 1 | — | 1,001 | ||||||||||||
Corporate bonds | 8,867 | 3 | — | 8,870 | ||||||||||||
Commercial paper | 999 | — | — | 999 | ||||||||||||
Certificates of deposit | 1,198 | — | — | 1,198 | ||||||||||||
Total | $ | 18,835 | $ | 6 | $ | (1 | ) | $ | 18,840 | |||||||
Long-term | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
U.S. Agency securities | $ | 6,957 | $ | 2 | $ | (3 | ) | $ | 6,956 | |||||||
U.S. Treasury | 1,013 | 1 | — | 1,014 | ||||||||||||
Corporate bonds | 2,790 | 5 | — | 2,795 | ||||||||||||
Certificates of deposit | 677 | — | — | 677 | ||||||||||||
Total | $ | 11,437 | $ | 8 | $ | (3 | ) | $ | 11,442 | |||||||
Schedule of Contractual Maturities of Investments | ' | |||||||||||||||
The contractual maturities of the Company's short-term and long-term investments as of June 30, 2014, are as follows (in thousands): | ||||||||||||||||
June 30, 2014 | ||||||||||||||||
Amortized Cost | Fair Value | |||||||||||||||
Due in one year or less | $ | 18,558 | $ | 18,565 | ||||||||||||
Due in one year to five years | 4,468 | 4,467 | ||||||||||||||
$ | 23,026 | $ | 23,032 | |||||||||||||
Schedule of Inventory, Current | ' | |||||||||||||||
The components of inventory consist of the following (in thousands): | ||||||||||||||||
June 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Raw materials | $ | 11,688 | $ | 4,520 | ||||||||||||
Finished goods | 6,867 | 3,886 | ||||||||||||||
Total inventory | $ | 18,555 | $ | 8,406 | ||||||||||||
Property, Plant and Equipment | ' | |||||||||||||||
Property and equipment, net comprised the following (in thousands): | ||||||||||||||||
June 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Lab equipment, tooling and molds | $ | 2,356 | $ | 2,071 | ||||||||||||
Computer software | 1,754 | 1,562 | ||||||||||||||
Computer equipment | 827 | 801 | ||||||||||||||
Leasehold improvements | 980 | 743 | ||||||||||||||
Furniture and fixtures | 402 | 334 | ||||||||||||||
Vehicles | 35 | 35 | ||||||||||||||
Total property and equipment | 6,354 | 5,546 | ||||||||||||||
Less: Accumulated depreciation and amortization | (4,178 | ) | (3,594 | ) | ||||||||||||
Construction in progress | 113 | 206 | ||||||||||||||
Property and equipment, net | $ | 2,289 | $ | 2,158 | ||||||||||||
Schedule of Accrued Liabilities | ' | |||||||||||||||
The following table shows the components of accrued liabilities (in thousands): | ||||||||||||||||
June 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Accrued payroll and employee related expenses | $ | 7,530 | $ | 7,863 | ||||||||||||
Accrued marketing expenses | 2,039 | 3,739 | ||||||||||||||
Accrued royalty | 3,312 | 2,458 | ||||||||||||||
Sales and other taxes payable | 1,584 | 1,787 | ||||||||||||||
Accrued warranty | 741 | 676 | ||||||||||||||
Accrued legal expenses | 645 | 284 | ||||||||||||||
Other accrued liabilities | 2,668 | 1,557 | ||||||||||||||
Total accrued liabilities | $ | 18,519 | $ | 18,364 | ||||||||||||
Schedule of Product Warranty Accrual | ' | |||||||||||||||
The estimated product warranty accrual was as follows (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Balance at the beginning of the period | $ | 660 | $ | 742 | $ | 676 | $ | 902 | ||||||||
Accruals for warranties issued | 159 | 55 | 198 | 97 | ||||||||||||
Settlements of warranty claims | (78 | ) | (71 | ) | (133 | ) | (273 | ) | ||||||||
Balance at the end of the period | $ | 741 | $ | 726 | $ | 741 | $ | 726 | ||||||||
Intangible_Asset_Net_Tables
Intangible Asset, Net (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | ' | |||||||
Intangible asset, net comprised the following (in thousands): | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
Purchased technology | $ | 8,050 | $ | 8,050 | ||||
Less: Accumulated amortization | (1,920 | ) | (1,569 | ) | ||||
Intangible asset, net | $ | 6,130 | $ | 6,481 | ||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | ' | |||||||
The total estimated annual future amortization expense of this intangible asset as of June 30, 2014, is as follows (in thousands): | ||||||||
Fiscal Year | ||||||||
2014 (remaining 6 months) | $ | 349 | ||||||
2015 | 701 | |||||||
2016 | 701 | |||||||
2017 | 701 | |||||||
2018 | 701 | |||||||
Thereafter | 2,977 | |||||||
Total | $ | 6,130 | ||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 6 Months Ended | |||
Jun. 30, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Schedule of Future Minimum Rental Payments for Operating Leases | ' | |||
Future minimum lease payments under the non-cancellable operating leases as of June 30, 2014, are as follows (in thousands): | ||||
Year Ending December 31, | Amount | |||
2014 (remaining 6 months) | $ | 670 | ||
2015 | 1,696 | |||
2016 | 1,467 | |||
2017 | 1,512 | |||
2018 | 1,551 | |||
Thereafter | 383 | |||
Total future minimum lease payments | $ | 7,279 | ||
StockBased_Compensation_Expens1
Stock-Based Compensation Expense (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Stock Options Activity | ' | |||||||||||||||
Activity under the Company’s stock-based compensation plans is set forth below: | ||||||||||||||||
Options Outstanding | ||||||||||||||||
Shares | Number of | Weighted- | ||||||||||||||
Available | Stock Options | Average | ||||||||||||||
for Grant | Outstanding | Exercise | ||||||||||||||
Price | ||||||||||||||||
Balance, December 31, 2013 | 1,086,737 | 3,598,385 | $ | 5.36 | ||||||||||||
Additional shares reserved | 1,851,794 | — | — | |||||||||||||
Options granted | (255,000 | ) | 255,000 | 18.42 | ||||||||||||
Restricted stock units granted | (379,175 | ) | — | — | ||||||||||||
Options exercised | — | (176,239 | ) | 4.67 | ||||||||||||
Options canceled | 13,543 | (13,543 | ) | 4.8 | ||||||||||||
Restricted stock units canceled | 90,212 | — | — | |||||||||||||
Restricted stock units withheld for tax | 176,854 | — | — | |||||||||||||
Balance, June 30, 2014 | 2,584,965 | 3,663,603 | $ | 6.31 | ||||||||||||
Restricted Stock Activity | ' | |||||||||||||||
Activity related to restricted stock units and awards is set forth below: | ||||||||||||||||
Number of Units and Awards | Weighted- | |||||||||||||||
Average | ||||||||||||||||
Grant Date Fair Value | ||||||||||||||||
Balance, December 31, 2013 | 1,906,696 | $ | 5.6 | |||||||||||||
Restricted stock units granted | 379,175 | 18.26 | ||||||||||||||
Restricted stock units released | (429,158 | ) | 5.27 | |||||||||||||
Restricted stock units canceled | (90,212 | ) | 5.76 | |||||||||||||
Balance, June 30, 2014 | 1,766,501 | $ | 8.39 | |||||||||||||
Stock-based Compensation Expense | ' | |||||||||||||||
Stock-based compensation expense related to all of the Company's stock-based awards and employee stock purchases was allocated as follows (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Cost of revenue | $ | 117 | $ | 62 | $ | 210 | $ | 108 | ||||||||
Research and development | 263 | 225 | 469 | 423 | ||||||||||||
Sales and marketing | 998 | 486 | 1,934 | 659 | ||||||||||||
General and administrative | 1,028 | 707 | 1,898 | 1,409 | ||||||||||||
Total stock-based compensation | $ | 2,406 | $ | 1,480 | $ | 4,511 | $ | 2,599 | ||||||||
Summary of Fair Value of Employee Stock Option Assumptions | ' | |||||||||||||||
The fair value of employee stock options was estimated using the following weighted-average assumptions: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Expected term (in years) | 4.4 | 4.8 | 4.4 | 4.8 | ||||||||||||
Expected volatility | 43 | % | 52 | % | 43 | % | 52 | % | ||||||||
Risk-free interest rate | 1.3 | % | 0.9 | % | 1.21 | % | 0.91 | % | ||||||||
Expected dividend yield | — | % | — | % | — | % | — | % |
Net_Income_Loss_Per_Share_of_C1
Net Income (Loss) Per Share of Common Stock(Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | ' | |||||||||||||||
A reconciliation of the numerator and denominator used in the calculation of the basic and diluted net loss per share is as follows: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Numerator | ||||||||||||||||
Net income (loss) (in thousands) | $ | 2,769 | $ | (3,607 | ) | $ | (4,568 | ) | $ | (11,089 | ) | |||||
Denominator | ||||||||||||||||
Weighted average shares of common stock outstanding used in computing net income (loss) per share, basic | 37,440,537 | 36,045,346 | 37,328,738 | 35,968,144 | ||||||||||||
Dilutive effect of incremental shares and share equivalents | 3,156,738 | — | — | — | ||||||||||||
Weighted average shares of common stock outstanding used in computing net income (loss) per share, diluted | 40,597,275 | 36,045,346 | 37,328,738 | 35,968,144 | ||||||||||||
Net income (loss) per share: | ||||||||||||||||
Net income (loss) per share, basic | $ | 0.07 | $ | (0.10 | ) | $ | (0.12 | ) | $ | (0.31 | ) | |||||
Net income (loss) per share, diluted | $ | 0.07 | $ | (0.10 | ) | $ | (0.12 | ) | $ | (0.31 | ) | |||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | ' | |||||||||||||||
The following outstanding potentially dilutive securities were excluded from the computation of diluted net income (loss) per share of common stock for the periods presented, because including them would have been anti-dilutive: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Options to purchase common stock | 188,297 | 3,204,054 | 3,663,603 | 3,160,424 | ||||||||||||
Restricted stock units | 141,871 | 149,441 | 1,766,501 | 189,380 | ||||||||||||
Common stock issuable pursuant to the ESPP | — | — | 2,633 | — | ||||||||||||
Total | 330,168 | 3,353,495 | 5,432,737 | 3,349,804 | ||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Revenue By Geographic Region | ' | |||||||||||||||
The Company’s revenue by geographic region, based on the location to where the product was shipped, is summarized as follows (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
North America | $ | 37,077 | $ | 21,178 | $ | 59,864 | $ | 37,795 | ||||||||
International | 9,984 | 5,160 | 18,172 | 8,525 | ||||||||||||
Total | $ | 47,061 | $ | 26,338 | $ | 78,036 | $ | 46,320 | ||||||||
Revenue By Product | ' | |||||||||||||||
The following table sets forth revenue by product expressed as dollar amounts (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
System revenue | $ | 25,383 | $ | 12,978 | $ | 39,844 | $ | 24,050 | ||||||||
Consumable revenue | 21,678 | 13,360 | 38,192 | 22,270 | ||||||||||||
Total | $ | 47,061 | $ | 26,338 | $ | 78,036 | $ | 46,320 | ||||||||
Fair_Value_Of_Financial_Instru2
Fair Value Of Financial Instruments (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | $23,032,000 | ' |
Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, fair value disclosure | 5,856,000 | 14,671,000 |
Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, fair value disclosure | 21,268,000 | 28,407,000 |
Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, fair value disclosure | 0 | 0 |
Liabilities, fair value disclosure | 0 | 0 |
Fair Value [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, fair value disclosure | 27,124,000 | 43,078,000 |
Money Market Funds [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents, fair value disclosure | 4,092,000 | 12,796,000 |
Money Market Funds [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents, fair value disclosure | 0 | 0 |
Money Market Funds [Member] | Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents, fair value disclosure | 0 | 0 |
Money Market Funds [Member] | Fair Value [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents, fair value disclosure | 4,092,000 | 12,796,000 |
Short-term Investments [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 18,565,000 | 18,840,000 |
Short-term Investments [Member] | U.S. Agency securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 9,217,000 | 6,772,000 |
Short-term Investments [Member] | U.S. Agency securities [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 0 | 0 |
Short-term Investments [Member] | U.S. Agency securities [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 9,217,000 | 6,772,000 |
Short-term Investments [Member] | U.S. Agency securities [Member] | Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 0 | 0 |
Short-term Investments [Member] | U.S. Agency securities [Member] | Fair Value [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 9,217,000 | 6,772,000 |
Short-term Investments [Member] | U.S. Treasury [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 2,010,000 | 1,001,000 |
Short-term Investments [Member] | U.S. Treasury [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 0 | 0 |
Short-term Investments [Member] | U.S. Treasury [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 2,010,000 | 1,001,000 |
Short-term Investments [Member] | U.S. Treasury [Member] | Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 0 | 0 |
Short-term Investments [Member] | U.S. Treasury [Member] | Fair Value [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 2,010,000 | 1,001,000 |
Short-term Investments [Member] | Corporate bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 5,020,000 | 8,870,000 |
Short-term Investments [Member] | Corporate bonds [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 0 | 0 |
Short-term Investments [Member] | Corporate bonds [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 5,020,000 | 8,870,000 |
Short-term Investments [Member] | Corporate bonds [Member] | Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 0 | 0 |
Short-term Investments [Member] | Corporate bonds [Member] | Fair Value [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 5,020,000 | 8,870,000 |
Short-term Investments [Member] | Commercial Paper [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 0 | 0 |
Short-term Investments [Member] | Commercial Paper [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 1,000,000 | 999,000 |
Short-term Investments [Member] | Commercial Paper [Member] | Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 0 | 0 |
Short-term Investments [Member] | Commercial Paper [Member] | Fair Value [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 1,000,000 | 999,000 |
Short-term Investments [Member] | Certificates of Deposit [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 1,318,000 | 1,198,000 |
Short-term Investments [Member] | Certificates of Deposit [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 1,318,000 | 1,198,000 |
Short-term Investments [Member] | Certificates of Deposit [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 0 | 0 |
Short-term Investments [Member] | Certificates of Deposit [Member] | Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 0 | 0 |
Short-term Investments [Member] | Certificates of Deposit [Member] | Fair Value [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 1,318,000 | 1,198,000 |
Long-term Investments [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 4,467,000 | 11,442,000 |
Long-term Investments [Member] | U.S. Agency securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 500,000 | 6,956,000 |
Long-term Investments [Member] | U.S. Agency securities [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 0 | 0 |
Long-term Investments [Member] | U.S. Agency securities [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 500,000 | 6,956,000 |
Long-term Investments [Member] | U.S. Agency securities [Member] | Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 0 | 0 |
Long-term Investments [Member] | U.S. Agency securities [Member] | Fair Value [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 500,000 | 6,956,000 |
Long-term Investments [Member] | U.S. Treasury [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 501,000 | 1,014,000 |
Long-term Investments [Member] | U.S. Treasury [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 0 | 0 |
Long-term Investments [Member] | U.S. Treasury [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 501,000 | 1,014,000 |
Long-term Investments [Member] | U.S. Treasury [Member] | Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 0 | 0 |
Long-term Investments [Member] | U.S. Treasury [Member] | Fair Value [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 501,000 | 1,014,000 |
Long-term Investments [Member] | Corporate bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 3,020,000 | 2,795,000 |
Long-term Investments [Member] | Corporate bonds [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 0 | 0 |
Long-term Investments [Member] | Corporate bonds [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 3,020,000 | 2,795,000 |
Long-term Investments [Member] | Corporate bonds [Member] | Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 0 | 0 |
Long-term Investments [Member] | Corporate bonds [Member] | Fair Value [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 3,020,000 | 2,795,000 |
Long-term Investments [Member] | Certificates of Deposit [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 446,000 | 677,000 |
Long-term Investments [Member] | Certificates of Deposit [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 446,000 | 677,000 |
Long-term Investments [Member] | Certificates of Deposit [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 0 | 0 |
Long-term Investments [Member] | Certificates of Deposit [Member] | Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 0 | 0 |
Long-term Investments [Member] | Certificates of Deposit [Member] | Fair Value [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | $446,000 | $677,000 |
Balance_Sheet_Components_Inves
Balance Sheet Components - Investments (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | $23,026 | ' |
Fair Value | 23,032 | ' |
Short-term Investments [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 18,558 | 18,835 |
Gross Unrealized Gains | 8 | 6 |
Gross Unrealized Losses | -1 | -1 |
Fair Value | 18,565 | 18,840 |
Short-term Investments [Member] | U.S. Agency securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 9,213 | 6,771 |
Gross Unrealized Gains | 4 | 2 |
Gross Unrealized Losses | 0 | -1 |
Fair Value | 9,217 | 6,772 |
Short-term Investments [Member] | U.S. Treasury [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 2,008 | 1,000 |
Gross Unrealized Gains | 2 | 1 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 2,010 | 1,001 |
Short-term Investments [Member] | Corporate bonds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 5,019 | 8,867 |
Gross Unrealized Gains | 2 | 3 |
Gross Unrealized Losses | -1 | 0 |
Fair Value | 5,020 | 8,870 |
Short-term Investments [Member] | Commercial paper [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 1,000 | 999 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 1,000 | 999 |
Short-term Investments [Member] | Certificates of deposit [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 1,318 | 1,198 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 1,318 | 1,198 |
Long-term Investments [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 4,468 | 11,437 |
Gross Unrealized Gains | 4 | 8 |
Gross Unrealized Losses | -5 | -3 |
Fair Value | 4,467 | 11,442 |
Long-term Investments [Member] | U.S. Agency securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 499 | 6,957 |
Gross Unrealized Gains | 1 | 2 |
Gross Unrealized Losses | 0 | -3 |
Fair Value | 500 | 6,956 |
Long-term Investments [Member] | U.S. Treasury [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 500 | 1,013 |
Gross Unrealized Gains | 1 | 1 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 501 | 1,014 |
Long-term Investments [Member] | Corporate bonds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 3,023 | 2,790 |
Gross Unrealized Gains | 2 | 5 |
Gross Unrealized Losses | -5 | 0 |
Fair Value | 3,020 | 2,795 |
Long-term Investments [Member] | Certificates of deposit [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 446 | 677 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $446 | $677 |
Balance_Sheet_Components_Inves1
Balance Sheet Components - Investments, Contractual Maturities (Details) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Balance Sheet Related Disclosures [Abstract] | ' |
Amortized Cost, Due in one year or less | $18,558 |
Amortized Cost, Due in one year to five years | 4,468 |
Amortized Cost | 23,026 |
Fair Value, Due in one year or less | 18,565 |
Fair Value, Due in one year to five years | 4,467 |
Fair Value | $23,032 |
Balance_Sheet_Components_Inven
Balance Sheet Components - Inventory (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory, Net [Abstract] | ' | ' |
Raw materials | $11,688 | $4,520 |
Finished goods | 6,867 | 3,886 |
Total inventory | $18,555 | $8,406 |
Balance_Sheet_Components_Prope
Balance Sheet Components - Property and Equipment, Net (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Property, plant and equipment, gross | $6,354,000 | ' | $6,354,000 | ' | $5,546,000 |
Less: Accumulated depreciation and amortization | -4,178,000 | ' | -4,178,000 | ' | -3,594,000 |
Property and equipment, net | 2,289,000 | ' | 2,289,000 | ' | 2,158,000 |
Depreciation expense | 300,000 | 200,000 | 600,000 | 500,000 | ' |
Lab equipment, tooling and molds [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Property, plant and equipment, gross | 2,356,000 | ' | 2,356,000 | ' | 2,071,000 |
Computer software [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Property, plant and equipment, gross | 1,754,000 | ' | 1,754,000 | ' | 1,562,000 |
Computer equipment [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Property, plant and equipment, gross | 827,000 | ' | 827,000 | ' | 801,000 |
Leasehold improvements [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Property, plant and equipment, gross | 980,000 | ' | 980,000 | ' | 743,000 |
Furniture and fixtures [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Property, plant and equipment, gross | 402,000 | ' | 402,000 | ' | 334,000 |
Vehicles [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Property, plant and equipment, gross | 35,000 | ' | 35,000 | ' | 35,000 |
Construction in Progress [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Property, plant and equipment, gross | $113,000 | ' | $113,000 | ' | $206,000 |
Balance_Sheet_Components_Accru
Balance Sheet Components - Accrued Liabilities (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Balance Sheet Related Disclosures [Abstract] | ' | ' |
Accrued payroll and employee related expenses | $7,530 | $7,863 |
Accrued marketing expenses | 2,039 | 3,739 |
Accrued royalty | 3,312 | 2,458 |
Sales and other taxes payable | 1,584 | 1,787 |
Accrual warranty | 741 | 676 |
Accrued legal expense | 645 | 284 |
Other accrued liabilities | 2,668 | 1,557 |
Total accrued liabilities | $18,519 | $18,364 |
Balance_Sheet_Components_Produ
Balance Sheet Components - Product Warranty (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Movement in Standard Product Warranty Accrual [Roll Forward] | ' | ' | ' | ' |
Balance at the beginning of the period | $660 | $742 | $676 | $902 |
Accruals for warranties issued | 159 | 55 | 198 | 97 |
Settlements of warranty claims | -78 | -71 | -133 | -273 |
Balance at the end of the period | $741 | $726 | $741 | $726 |
Direct Customer [Member] | Control Units [Member] | ' | ' | ' | ' |
Product Liability Contingency [Line Items] | ' | ' | ' | ' |
Product Warranty Accrual, Term | ' | ' | '1 year | ' |
Direct Customer [Member] | Applicators [Member] | ' | ' | ' | ' |
Product Liability Contingency [Line Items] | ' | ' | ' | ' |
Product Warranty Accrual, Term | ' | ' | '1 year | ' |
International [Member] | Indirect Customer [Member] | Control Units [Member] | ' | ' | ' | ' |
Product Liability Contingency [Line Items] | ' | ' | ' | ' |
Product Warranty Accrual, Term | ' | ' | '3 years | ' |
International [Member] | Indirect Customer [Member] | Applicators [Member] | ' | ' | ' | ' |
Product Liability Contingency [Line Items] | ' | ' | ' | ' |
Product Warranty Accrual, Term | ' | ' | '1 year | ' |
Intangible_Asset_Net_Details
Intangible Asset, Net (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' | ' |
Amortization of intangible assets | $0.20 | $0.20 | $0.40 | $0.40 |
Intangible_Asset_Net_Intangibl
Intangible Asset, Net - Intangible Asset, Net Comprises (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' |
Purchased technology | $8,050 | $8,050 |
Less: accumulated amortization | -1,920 | -1,569 |
Intangible asset, net | $6,130 | $6,481 |
Intangible_Asset_Net_Estimated
Intangible Asset, Net - Estimated Annual Future Amortization Expense (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Intangible Asset, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ' | ' |
2014 (remaining 6 months) | $349 | ' |
2015 | 701 | ' |
2016 | 701 | ' |
2017 | 701 | ' |
2018 | 701 | ' |
Thereafter | 2,977 | ' |
Intangible asset, net | $6,130 | $6,481 |
Related_Party_Transactions_Bra
Related Party Transactions - Brazilian Distribution Agreement (Details) (Distributor [Member], USD $) | 3 Months Ended | 6 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Distributor [Member] | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Revenue from related parties | $0.10 | $0.50 | $1.10 | $0.80 | ' |
Accounts receivable, related parties | $0.30 | ' | $0.30 | ' | $0.20 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Lease Commitments (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' | ' |
Rent expense | $400,000 | $300,000 | $700,000 | $700,000 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ' | ' | ' | ' |
2014 (remaining 6 months) | 670,000 | ' | 670,000 | ' |
2015 | 1,696,000 | ' | 1,696,000 | ' |
2016 | 1,467,000 | ' | 1,467,000 | ' |
2017 | 1,512,000 | ' | 1,512,000 | ' |
2018 | 1,551,000 | ' | 1,551,000 | ' |
Thereafter | 383,000 | ' | 383,000 | ' |
Total future minimum lease payments | $7,279,000 | ' | $7,279,000 | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies - Purchase Commitments and Unrecognized Tax Benefits (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Commitments and Contingencies Disclosure [Abstract] | ' | ' |
Purchase obligation | $3,200,000 | $6,000,000 |
Unrecognized tax benefits, including estimated interest and penalties | $11,000 | ' |
Commitments_and_Contingencies_3
Commitments and Contingencies - Severance (Details) (Management [Member], USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Jun. 30, 2014 |
Management [Member] | ' | ' |
Loss Contingencies [Line Items] | ' | ' |
Termination benefits | $0.30 | ' |
Stock-based compensation expense due to modification | 0.7 | ' |
Termination benefits liability | ' | $0.10 |
StockBased_Compensation_Expens2
Stock-Based Compensation Expense - Stock Options Plan Activity (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Shares Available for Grant | ' | ' | ' | ' |
Balance at December 31, 2013 (Shares) | ' | ' | 1,086,737 | ' |
Additional shares reserved (Shares) | ' | ' | 1,851,794 | ' |
Options granted (Shares) | ' | ' | -255,000 | ' |
Options canceled (Shares) | ' | ' | 13,543 | ' |
Balance at June 30, 2014 (Shares) | 2,584,965 | ' | 2,584,965 | ' |
Number of Stock Options Outstanding | ' | ' | ' | ' |
Balance at December 31, 2013 (Number of Stock Options Outstanding) (Shares) | ' | ' | 3,598,385 | ' |
Options granted (Number of stock options Outstanding) (Shares) | ' | ' | 255,000 | ' |
Options exercised (Number of stock options outstanding) (Shares) | ' | ' | -176,239 | ' |
Options canceled (Number of Stock Options Outstanding) (Shares) | ' | ' | -13,543 | ' |
Balance at June 30, 2014 (Number of Stock Options Outstanding) (Shares) | 3,663,603 | ' | 3,663,603 | ' |
Weighted-Average Exercise Price | ' | ' | ' | ' |
Balance at December 31, 2013 (Weighted average exercise price) (Per Share) | ' | ' | 5.36 | ' |
Options granted (Weighted average exercise price) (Per Share) | ' | ' | 18.42 | ' |
Options exercised (Weighted average exercise price) (Per Share) | ' | ' | 4.67 | ' |
Options canceled (Weighted average exercise price) (Per Share) | ' | ' | 4.8 | ' |
Balance at June 30, 2014 (Weighted average exercise price) (Per Share) | 6.31 | ' | 6.31 | ' |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' | ' |
Shares Available for Grant | ' | ' | ' | ' |
Restricted stock units granted (Shares) | ' | ' | -379,175 | ' |
Restricted stock units canceled (Shares) | ' | ' | 90,212 | ' |
Restricted stock units withheld for tax (Shares) | 42,018 | 13,735 | 176,854 | 15,705 |
StockBased_Compensation_Expens3
Stock-Based Compensation Expense - Restricted Stock Units (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Weighted- Average Grant Date Fair Value | ' | ' | ' | ' |
Payments for employee's tax obligations to relevant taxing authority | ' | ' | $3,247 | $62 |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' | ' |
Number of Units and Awards | ' | ' | ' | ' |
Balance at December 31, 2013 (Shares) | ' | ' | 1,906,696 | ' |
Restricted stock units granted (Shares) | ' | ' | 379,175 | ' |
Restricted stock units released (Shares) | -109,576 | -40,838 | -429,158 | -67,999 |
Restricted stock units canceled (Shares) | ' | ' | -90,212 | ' |
Balance at June 30, 2014 (Shares) | 1,766,501 | ' | 1,766,501 | ' |
Weighted- Average Grant Date Fair Value | ' | ' | ' | ' |
Balance at December 31, 2013 (Weighted average exercise price) (Per Share) | ' | ' | $5.60 | ' |
Restricted stock units granted (Weighted average exercise price) (Per Share) | ' | ' | $18.26 | ' |
Restricted stock units released (Weighted average exercise price) (Per Share) | ' | ' | $5.27 | ' |
Restricted stock units canceled (Weighted average exercise price) (Per Share) | ' | ' | $5.76 | ' |
Balance at June 30, 2014 (Weighted average exercise price) (Per Share) | $8.39 | ' | $8.39 | ' |
Restricted stock units withheld for tax (Shares) | 42,018 | 13,735 | 176,854 | 15,705 |
Payments for employee's tax obligations to relevant taxing authority | $700 | $55 | $3,200 | $62 |
StockBased_Compensation_Expens4
Stock-Based Compensation Expense - Allocation of Stock Based Compensation Expense (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | $2,406 | $1,480 | $4,511 | $2,599 |
Cost of revenues [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 117 | 62 | 210 | 108 |
Research and Development Expense [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 263 | 225 | 469 | 423 |
Sales and Marketing Expense [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 998 | 486 | 1,934 | 659 |
General and Administrative Expense [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 1,028 | 707 | 1,898 | 1,409 |
Performance Based Stock Options and Restricted Stock Units [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | $500 | $300 | $1,000 | $500 |
StockBased_Compensation_Expens5
Stock-Based Compensation Expense - Assumptions (Details) (Stock Options [Member]) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Stock Options [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Expected term | '4 years 4 months 24 days | '4 years 9 months 18 days | '4 years 4 months 24 days | '4 years 9 months 18 days |
Expected volatility | 43.00% | 52.00% | 43.00% | 52.00% |
Risk-free interest rate | 1.30% | 0.90% | 1.21% | 0.91% |
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
StockBased_Compensation_Expens6
Stock-Based Compensation Expense - Employee Stock-Based Compensation (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Options granted (Shares) | ' | ' | 255,000 | ' |
Stock Compensation Plan [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Options granted (Shares) | 180,000 | 285,000 | 250,000 | 375,000 |
Weighted average grant date fair value (Per Share) | $6.42 | $2.33 | $6.77 | $2.20 |
Unrecognized compensation cost | $16.50 | ' | $16.50 | ' |
Unrecognized compensation cost, recognition period (in years) | ' | ' | '2 years 3 months | ' |
Employee Restricted Stock Units (RSUs) [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Restricted stock units granted (Shares) | 185,375 | 198,950 | 369,175 | 953,000 |
Weighted average grant date fair value (Per Share) | $15.79 | $4.71 | $18.28 | $4.15 |
ESPP [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Unrecognized compensation cost | $0.30 | ' | $0.30 | ' |
Unrecognized compensation cost, recognition period (in years) | ' | ' | '5 months | ' |
StockBased_Compensation_Expens7
Stock-Based Compensation Expense - Non-Employee Stock-Based Compensation (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' | ' | ' | ' |
Vesting period for non-employee stock-based awards | ' | '2 years | ' | ' | ' | '2 years |
Stock-based compensation expense related to non-employee grants | $21 | ' | $100 | $100 | $100 | ' |
Net_Income_Loss_Per_Share_of_C2
Net Income (Loss) Per Share of Common Stock (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net income (loss) | $2,769 | ($3,607) | ($4,568) | ($11,089) |
Weighted average shares of common stock outstanding used in computing net income (loss) per share, basic (shares) | 37,440,537 | 36,045,346 | 37,328,738 | 35,968,144 |
Dilutive effect of incremental shares and share equivalents | 3,156,738 | 0 | 0 | 0 |
Weighted average shares of common stock outstanding used in computing net income (loss) per share, diluted (shares) | 40,597,275 | 36,045,346 | 37,328,738 | 35,968,144 |
Net income (loss) per share: | ' | ' | ' | ' |
Net income (loss) per share, basic (dollars per share) | $0.07 | ($0.10) | ($0.12) | ($0.31) |
Net income (loss) per share, diluted (dollars per share) | $0.07 | ($0.10) | ($0.12) | ($0.31) |
Net_Income_Loss_Per_Share_of_C3
Net Income (Loss) Per Share of Common Stock - Outstanding Shares of Potentially Dilutive Securities (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 330,168 | 3,353,495 | 5,432,737 | 3,349,804 |
Options to purchase common stock [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 188,297 | 3,204,054 | 3,663,603 | 3,160,424 |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 141,871 | 149,441 | 1,766,501 | 189,380 |
Common stock issuable pursuant to the ESPP [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 0 | 0 | 2,633 | 0 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
(Benefit from) provision for income taxes | ($73,000) | $43,000 | $6,000 | $50,000 |
Unrecognized tax benefits | 1,200,000 | ' | 1,200,000 | ' |
Unrecognized tax benefits that would impact effective tax rate | 8,000 | ' | 8,000 | ' |
Release of previously recorded unrecognized tax benefits | $1,700,000 | ' | ' | ' |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
business_activity | ||||
segment | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Number of business activities | ' | ' | 1 | ' |
Number of reportable segments | ' | ' | 1 | ' |
Revenue, net | $47,061 | $26,338 | $78,036 | $46,320 |
North America [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue, net | 37,077 | 21,178 | 59,864 | 37,795 |
United States | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue, net | 34,900 | 19,900 | 55,800 | 35,900 |
International [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue, net | 9,984 | 5,160 | 18,172 | 8,525 |
Systems Revenue [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue, net | 25,383 | 12,978 | 39,844 | 24,050 |
Consumable Revenue [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue, net | $21,678 | $13,360 | $38,192 | $22,270 |