Proto Labs (PRLB) 10-Q 31 Oct 17 2017 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Oct. 24, 2017
Document Information [Line Items]
Entity Registrant Name	Proto Labs Inc
Entity Central Index Key	1,443,669
Trading Symbol	prlb
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	Yes
Entity Common Stock, Shares Outstanding (in shares)		26,645,826
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Amendment Flag	false

Consolidated Balance Sheets (Cu

Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Assets
Cash and cash equivalents	$ 119,283	$ 68,795
Short-term marketable securities	53,201	39,477
Accounts receivable, net of allowance for doubtful accounts of $568 and $442 as of September 30, 2017 and December 31, 2016, respectively	46,276	34,060
Inventory	9,789	9,310
Prepaid expenses and other current assets	6,280	5,697
Income taxes receivable		445
Total current assets	234,829	157,784
Property and equipment, net	153,512	139,474
Goodwill	28,916	28,916
Other intangible assets, net	2,261	2,655
Long-term marketable securities	55,351	84,479
Other long-term assets	2,701	933
Total assets	477,570	414,241
Liabilities and shareholders' equity
Accounts payable	13,130	11,322
Accrued compensation	11,366	7,670
Accrued liabilities and other	7,463	4,435
Income taxes payable	3,804
Total current liabilities	35,763	23,427
Long-term deferred tax liabilities	7,721	7,003
Other long-term liabilities	4,247	3,978
Total liabilities	47,731	34,408
Shareholders' equity
Preferred stock, $0.001 par value, authorized 10,000,000 shares; issued and outstanding 0 shares as of each of September 30, 2017 and December 31, 2016
Common stock, $0.001 par value, authorized 150,000,000 shares; issued and outstanding 26,631,444 and 26,504,868 shares as of September 30, 2017 and December 31, 2016, respectively	27	26
Additional paid-in capital	225,135	213,857
Retained earnings	210,426	176,703
Accumulated other comprehensive loss	(5,749)	(10,753)
Total shareholders' equity	429,839	379,833
Total liabilities and shareholders' equity	$ 477,570	$ 414,241

Consolidated Balance Sheets (C3

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Allowance for doubtful accounts	$ 568	$ 442
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	150,000,000	150,000,000
Common stock, shares issued (in shares)	26,631,444	26,504,868
Common stock, shares outstanding (in shares)	26,631,444	26,504,868

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statements of Operations:
Revenues	$ 88,105	$ 78,173	$ 250,312	$ 225,702
Cost of revenue	38,793	33,448	109,358	99,077
Gross profit	49,312	44,725	140,954	126,625
Operating expenses
Marketing and sales	13,846	11,787	41,463	34,182
Research and development	5,877	5,976	17,784	17,110
General and administrative	10,222	10,020	28,256	28,397
Total operating expenses	29,945	27,783	87,503	79,689
Income from operations	19,367	16,942	53,451	46,936
Other income, net	291	625	1,779	2,342
Income before income taxes	19,658	17,567	55,230	49,278
Provision for income taxes	6,438	5,585	17,724	15,943
Net income	$ 13,220	$ 11,982	$ 37,506	$ 33,335
Net income per share:
Basic (in dollars per share)	$ 0.50	$ 0.45	$ 1.41	$ 1.27
Diluted (in dollars per share)	$ 0.49	$ 0.45	$ 1.40	$ 1.26
Shares used to compute net income per share:
Basic - weighted-average shares outstanding: (in shares)	26,617,349	26,416,041	26,600,174	26,334,738
Diluted (in shares)	26,802,034	26,609,878	26,716,553	26,539,078
Comprehensive Income (net of tax)
Comprehensive income	$ 14,875	$ 11,828	$ 42,510	$ 31,781

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Operating activities
Net income	$ 37,506	$ 33,335
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	13,539	12,831
Share-based Compensation	6,159	5,260
Deferred taxes	715	495
Loss on impairment of assets		455
Amortization of held-to-maturity securities	851	881
Other	21	(1,381)
Changes in operating assets and liabilities:
Accounts receivable	(10,679)	(1,626)
Inventories	(188)	(203)
Prepaid expenses and other	(1,147)	(1,107)
Income taxes	4,158	8,114
Accounts payable	1,387	(2,043)
Accrued liabilities and other	6,678	3,131
Net cash provided by operating activities	59,000	58,142
Investing activities
Purchases of property and equipment	(24,164)	(30,981)
Purchases of marketable securities	(20,037)	(56,213)
Proceeds from maturities of marketable securities	34,090	45,907
Purchases of other investments	(514)
Net cash used in investing activities	(10,625)	(41,287)
Financing activities
Acquisition-related contingent consideration		(400)
Proceeds from exercises of stock options and other	5,749	4,168
Repurchases of common stock	(4,410)
Net cash provided by financing activities	1,339	3,768
Effect of exchange rate changes on cash and cash equivalents	774	(58)
Net increase in cash and cash equivalents	50,488	20,565
Cash and cash equivalents, beginning of period	68,795	47,653
Cash and cash equivalents, end of period	$ 119,283	$ 68,218

Note 1 - Basis of Presentation

Note 1 - Basis of Presentation	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	Note 1 – Basis of Presentation The unaudited interim Consolidated Financial Statements of Proto Labs, Inc. (Proto Labs, the Company, we, us or our) have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for interim financial information and with the instructions to Form 10 10 X. not may The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and the related disclosures at the date of the financial statements and during the reporting period. Actual results could materially differ from these estimates. For further information, refer to the audited Consolidated Financial Statements and Notes thereto included in the Company ’s Annual Report on Form 10 December 31, 2016 February 22, 2017. The accompanying Consolidated Balance Sheet as of December 31, 2016 not 10 10 February 22, 2017

Note 2 - Recent Accounting Pron

Note 2 - Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	Note 2 – Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements During the first 2017, 2016 09, Employee Share-Based Payment Accounting three nine September 30, 2017, $0.1 $0.3 $2.0 nine September 30, 2016. Recently Issued Accounting Pronouncements In May 2014, No. 2014 09, Revenue from Contracts with Customers one two On July 9, 2015, 2014 09 one December 15, 2017 trospective approach. As of September 30, 2017, not 10 December 31, 2017. In February 2016, 2016 02, Leases December 15, 2018 not In August 2016, 2016 15, Statement of Cash Flows December 15, 2017 not In January 2017, 2017 04, Intangibles – Goodwill and Other, December 15, 2019 not In January 2017, 2017 01, Business Combinations, December 15, 2017 not In May 2017, 2017 09, Compensation – Stock Compensation December 15, 2017 not

Note 3 - Net Income Per Common

Note 3 - Net Income Per Common Share	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Earnings Per Share [Text Block]	Note 3 – Net Income per Common Share Basic net income per share is computed based on the weighted-average number of common shares outstanding. Diluted net income per share is computed based on the weighted-average number of common shares outstanding, increased by the number of additional shares that would have been outstanding had potentially dilutive common shares been issued and reduced by the number of shares the Company could have repurchased from the proceeds from issuance of the potentially dilutive shares. Potentially dilutive shares of common stock include stock options, restricted stock units and restricted stock awards granted under stock-based compensation plans and shares committed to be purchased under the employee stock purchase plan. Performance Stock Units are excluded from the calculation of dilutive potential common shares until the performance conditions have been satisfied. The table below sets forth the computation of basic and diluted net income per share: Three Months Ended Nine Months Ended September 30, September 30, (in thousands, except share and per share amounts) 2017 2016 2017 2016 Net income $ 13,220 $ 11,982 $ 37,506 $ 33,335 Basic - weighted-average shares outstanding: 26,617,349 26,416,041 26,600,174 26,334,738 Effect of dilutive securities: Employee stock options and other 184,685 193,837 116,379 204,340 Diluted - weighted-average shares outstanding: 26,802,034 26,609,878 26,716,553 26,539,078 Net income per share: Basic $ 0.50 $ 0.45 $ 1.41 $ 1.27 Diluted $ 0.49 $ 0.45 $ 1.40 $ 1.26

Note 4 - Goodwill and Other Int

Note 4 - Goodwill and Other Intangible Assets	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Goodwill and Intangible Assets Disclosure [Text Block]	Note 4 – Goodwill and Other Intangible Assets There were no oodwill during the three nine September 30, 2017. Intangible As sets other than Goodwill at September 30, 2017 December 31, 2016 September 30, 2017 December 31, 2016 Useful Weighted Average Useful Life (in thousands) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Life (in years) Remaining (in years) Intangible Assets with finite lives: Marketing assets $ 930 $ (318 ) $ 612 $ 930 $ (248 ) $ 682 10.0 6.6 Non-compete agreement 190 (190 ) - 190 (190 ) - 2.0 - Trade secrets 250 (171 ) 79 250 (133 ) 117 5.0 1.6 Internally developed software 680 (680 ) - 680 (604 ) 76 3.0 - Customer relationships 2,530 (960 ) 1,570 2,530 (750 ) 1,780 9.0 5.6 Total intangible assets $ 4,580 $ (2,319 ) $ 2,261 $ 4,580 $ (1,925 ) $ 2,655 Amortization expense for intangible assets was $ 0.1 $0.2 three September 30, 2017 2016, $0.4 $0.5 nine September 30, 2017 2016, Estimated aggregated amortization expense based on the current carrying value of the amortizable intangible assets is as follows: (in thousands) Estimated Amortization Expense Remaining 2017 $ 106 2018 424 2019 391 2020 374 2021 374 Thereafter 592 Total estimated amortization expense $ 2,261

Note 5 - Fair Value Measurement

Note 5 - Fair Value Measurements	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Fair Value Disclosures [Text Block]	Note 5 – Fair Value Measurements ASC 820, Fair Value Measuremen 820 820 three may Level 1 —Quoted prices in active markets for identical assets or liabilities. Level 2 —Observable inputs other than Level 1 not Level 3 —Unobservable inputs that are supported by little or no The Company ’s cash consists of bank deposits. The Company’s cash equivalents measured at fair value consist of money market mutual funds. The Company determines the fair value of these investments using Level 1 The following table summ arizes financial assets as of September 30, 2017 December 31, 2016 September 30, 2017 December 31, 2016 (in thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents Money market mutual fund $ 26,187 $ - $ - $ 11,771 $ - $ - Total $ 26,187 $ - $ - $ 11,771 $ - $ -

Note 6 - Marketable Securities

Note 6 - Marketable Securities	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Investment [Text Block]	Note 6 – Marketable Securities The Company invests in short-term and long-term agency, municipal, corporate and other debt securities. The securities are categorized as held-to-maturity and are recorded at amortized cost. Categorization as held-to-maturity is based on the Company ’s ability and intent to hold these securities to maturity. Information regarding the Company’s short-term and long-term marketable securities as of September 30, 2017 December 31, 2016 September 30, 2017 (in thousands) Cost Unrealized Gains Unrealized Losses Fair Value U.S. municipal securities $ 35,388 $ 23 $ (43 ) $ 35,368 Corporate debt securities 29,841 3 (68 ) 29,776 U.S. government agency securities 37,866 - (125 ) 37,741 Certificates of deposit/time deposits 5,456 1 (25 ) 5,432 Total marketable securities $ 108,552 $ 27 $ (261 ) $ 108,318 December 31, 2016 (in thousands) Cost Unrealized Gains Unrealized Losses Fair Value U.S. municipal securities $ 46,578 $ 1 $ (187 ) $ 46,392 Corporate debt securities 38,490 2 (147 ) 38,345 U.S. government agency securities 31,706 1 (141 ) 31,566 Certificates of deposit/time deposits 7,182 12 (22 ) 7,172 Total marketable securities $ 123,956 $ 16 $ (497 ) $ 123,475 Fair values for the corporate debt securities are primarily determined based on quoted market prices (Level 1 2 The Company tests for other-than-temporary losses on a quarterly basis and has considered the unrealized losses indicated above to be temporary in nature. In reaching this conclusion, the Company considered the credit quality of the issuers of the debt securities as well as the Company ’s intent to hold the investments to maturity and recover the full principal. Classification of marketable securities as current or non-current is based upon the security ’s maturity date as of the date of these financial statements. Th e September 30, 2017 may may September 30, (in thousands) 2017 Due in one year or less $ 53,201 Due after one year through five years 55,351 Total marketable securities $ 108,552

Note 7 - Inventory

Note 7 - Inventory	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Inventory Disclosure [Text Block]	Note 7 – Inventory Inventory consists primarily of raw materials, which are recorded at the lower of cost or market using the average-cost method, which approximates first first The Company ’s inventory consisted of the following as of the dates indicated: September 30, December 31, (in thousands) 2017 2016 Raw materials $ 8,653 $ 8,057 Work in process 1,531 1,531 Total inventory 10,184 9,588 Allowance for obsolescence (395 ) (278 ) Inventory, net of allowance $ 9,789 $ 9,310

Note 8 - Stock-based Compensati

Note 8 - Stock-based Compensation	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	Note 8 – Stock-Based Compensation Under the Company ’s 2012 2012 2012 ten may 2012 may not Employee Stock Purchase Plan The Company ’s 2012 15 six May 15 November 15, 85 first Stock-Based Compensation Expense Stock-bas ed compensation expense was $2.2 $1.7 three September 30, 2017 2016, $6.2 $5.3 nine September 30, 2017 2016, Stock Options The following table summarizes st ock option activity during the nine September 30, 2017: Weighted- Average Stock Options Exercise Price Options outstanding at December 31, 2016 569,639 $ 45.00 Granted 43,095 58.35 Exercised (136,483 ) 34.82 Forfeited (16,943 ) 58.17 Options outstanding at September 30, 2017 459,308 $ 48.79 Exercisable at September 30, 2017 270,705 $ 40.54 The outstanding options generally have a term of ten five first ’s continuing service to the Company. For directors, options generally become exercisable in full on the first The weighted-average grant date fair value of options that were granted during the nine September 30, 2017 $27.57. The following table provides the assumptions used in the Black-Scholes pricing model val uation of options during the nine September 30, 2017 2016: Nine Months Ended September 30, 2017 2016 Risk-free interest rate 2.24% 1.53 - 1.68% Expected life (years) 6.50 6.50 Expected volatility 44.68% 44.38 - 45.93% Expected dividend yield 0% 0% As of September 30, 2017, $4.3 2.8 Restricted Stock Restricted stock awards are share-settled awards and restrictions lapse ratably over the vesting period, which is generally a five first first The following table summarizes restri cted stock activity during the nine September 30, 2017: Weighted- Average Grant Date Restricted Fair Value Stock Per Share Restricted stock at December 31, 2016 215,105 $ 62.78 Granted 197,649 61.60 Restrictions lapsed (55,205 ) 63.62 Forfeited (13,074 ) 63.51 Restricted stock at September 30, 2017 344,475 $ 61.94 As of September 30, 2017, $18.7 3.8 Performance Stock Performance Stock Units ( PSUs) are expressed in terms of a target number of PSUs, with anywhere between 0 150 three September 30, 2017, 100 The following table summarizes performan ce stock activity during the nine September 30, 2017: Weighted- Average Grant Date Performance Fair Value Stock Per Share Performance stock at December 31, 2016 - $ - Granted 25,707 58.35 Restrictions lapsed - - Forfeited - - Performance stock at September 30, 2017 25,707 $ 58.35 Employee Stock Purchase Plan The following table presents the assumptions used to estimate the fair value of the ESPP during the nine September 30, 2017 2016: Nine Months Ended September 30, 2017 2016 Risk-free interest rate 0.59% - 0.97% 0.39 - 0.56% Expected life (months) 6.00 6.00 Expected volatility 34.51% - 39.51% 29.41 - 49.13% Expected dividend yield 0% 0%

Note 9 - Accumulated Other Comp

Note 9 - Accumulated Other Comprehensive Loss	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Disclosure of Reclassification Amount [Text Block]	Note 9 – Accumulated Other Comprehensive Loss Other comprehensive income (loss) is comprised entirely of foreign currency translation adjustments. The following table presents the changes in accumulated other comprehensive loss b alances during the three nine September 30, 2017 2016: Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2017 2016 2017 2016 Foreign currency translation adjustments Balance at beginning of period $ (7,404 ) $ (6,612 ) $ (10,753 ) $ (5,212 ) Other comprehensive income (loss) before reclassifications 1,655 (154 ) 5,004 (1,554 ) Amounts reclassified from accumulated other comprehensive loss - - - - Net current-period other comprehensive income (loss) 1,655 (154 ) 5,004 (1,554 ) Balance at end of period $ (5,749 ) $ (6,766 ) $ (5,749 ) $ (6,766 )

Note 10 - Income Taxes

Note 10 - Income Taxes	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Income Tax Disclosure [Text Block]	Note 10 – Income Taxes The Company is subject to income tax in multiple jurisdictions and the use of estimates is required to determine the provision for income taxes. For the three September 30, 2017 2016, $6.4 $5.6 nine September 30, 2017 2016, $17.7 $15.9 three September 30, 2017 32.8 31.8 nine September 30, 2017 32.1 32.4 The effective income ta x three nine September 30, 2017 35.0 The Company had reserves against unrecog nized tax benefits totaling $4.0 $3.8 September 30, 2017 December 31, 2016,

Note 11 - Segment Reporting

Note 11 - Segment Reporting	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	Note 11 – Segment Reporting The Company ’s reportable segments are based on the internal reporting used by the Company’s Chief Executive Officer, who is the chief operating decision maker (CODM), to assess operating performance and make decisions about the allocation of resources. The Corporate Unallocated and Japan category includes non-reportable segments, as well as research and development and general and administrative costs that the Company does not Intercompany transactions primarily relate to intercontinental activity and have been eliminated and are excluded from the reported amounts. The difference between income from operations and pre-tax income relates to foreign currency-related gains and losses and interest income on cash balances and investments, which are not Revenue and income from operations by reportable segment for the three nine September 30, 2017 2016 Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2017 2016 2017 2016 Revenue: United States $ 67,490 $ 59,574 $ 191,019 $ 169,364 Europe 18,094 15,610 51,224 48,518 Japan 2,521 2,989 8,069 7,820 Total revenue $ 88,105 $ 78,173 $ 250,312 $ 225,702 Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2017 2016 2017 2016 Income from Operations: United States $ 26,903 $ 23,910 $ 76,973 $ 67,542 Europe 3,251 3,554 9,626 9,369 Corporate Unallocated and Japan (10,787 ) (10,522 ) (33,148 ) (29,975 ) Total income from operations $ 19,367 $ 16,942 $ 53,451 $ 46,936 Total long-lived assets at September 30, 2017 December 31, 2016 September 30, December 31, (in thousands) 2017 2016 Total long-lived assets: United States $ 113,784 $ 108,650 Europe 32,115 23,199 Japan 7,613 7,625 Total assets $ 153,512 $ 139,474

Significant Accounting Policies

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	The unaudited interim Consolidated Financial Statements of Proto Labs, Inc. (Proto Labs, the Company, we, us or our) have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for interim financial information and with the instructions to Form 10 10 X. not may The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and the related disclosures at the date of the financial statements and during the reporting period. Actual results could materially differ from these estimates. For further information, refer to the audited Consolidated Financial Statements and Notes thereto included in the Company ’s Annual Report on Form 10 December 31, 2016 February 22, 2017. The accompanying Consolidated Balance Sheet as of December 31, 2016 not 10 10 February 22, 2017
New Accounting Pronouncements, Policy [Policy Text Block]	Recently Adopted Accounting Pronouncements During the first 2017, 2016 09, Employee Share-Based Payment Accounting three nine September 30, 2017, $0.1 $0.3 $2.0 nine September 30, 2016. Recently Issued Accounting Pronouncements In May 2014, No. 2014 09, Revenue from Contracts with Customers one two On July 9, 2015, 2014 09 one December 15, 2017 trospective approach. As of September 30, 2017, not 10 December 31, 2017. In February 2016, 2016 02, Leases December 15, 2018 not In August 2016, 2016 15, Statement of Cash Flows December 15, 2017 not In January 2017, 2017 04, Intangibles – Goodwill and Other, December 15, 2019 not In January 2017, 2017 01, Business Combinations, December 15, 2017 not In May 2017, 2017 09, Compensation – Stock Compensation December 15, 2017

Note 3 - Net Income Per Commo18

Note 3 - Net Income Per Common Share (Tables)	9 Months Ended
	Sep. 30, 2017
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended Nine Months Ended September 30, September 30, (in thousands, except share and per share amounts) 2017 2016 2017 2016 Net income $ 13,220 $ 11,982 $ 37,506 $ 33,335 Basic - weighted-average shares outstanding: 26,617,349 26,416,041 26,600,174 26,334,738 Effect of dilutive securities: Employee stock options and other 184,685 193,837 116,379 204,340 Diluted - weighted-average shares outstanding: 26,802,034 26,609,878 26,716,553 26,539,078 Net income per share: Basic $ 0.50 $ 0.45 $ 1.41 $ 1.27 Diluted $ 0.49 $ 0.45 $ 1.40 $ 1.26

Note 4 - Goodwill and Other I19

Note 4 - Goodwill and Other Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2017
Notes Tables
Schedule of Finite-Lived Intangible Assets [Table Text Block]	September 30, 2017 December 31, 2016 Useful Weighted Average Useful Life (in thousands) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Life (in years) Remaining (in years) Intangible Assets with finite lives: Marketing assets $ 930 $ (318 ) $ 612 $ 930 $ (248 ) $ 682 10.0 6.6 Non-compete agreement 190 (190 ) - 190 (190 ) - 2.0 - Trade secrets 250 (171 ) 79 250 (133 ) 117 5.0 1.6 Internally developed software 680 (680 ) - 680 (604 ) 76 3.0 - Customer relationships 2,530 (960 ) 1,570 2,530 (750 ) 1,780 9.0 5.6 Total intangible assets $ 4,580 $ (2,319 ) $ 2,261 $ 4,580 $ (1,925 ) $ 2,655
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]	(in thousands) Estimated Amortization Expense Remaining 2017 $ 106 2018 424 2019 391 2020 374 2021 374 Thereafter 592 Total estimated amortization expense $ 2,261

Note 5 - Fair Value Measureme20

Note 5 - Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2017
Notes Tables
Fair Value, Assets Measured on Recurring Basis [Table Text Block]	September 30, 2017 December 31, 2016 (in thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents Money market mutual fund $ 26,187 $ - $ - $ 11,771 $ - $ - Total $ 26,187 $ - $ - $ 11,771 $ - $ -

Note 6 - Marketable Securities

Note 6 - Marketable Securities (Tables)	9 Months Ended
	Sep. 30, 2017
Notes Tables
Held-to-maturity Securities [Table Text Block]	September 30, 2017 (in thousands) Cost Unrealized Gains Unrealized Losses Fair Value U.S. municipal securities $ 35,388 $ 23 $ (43 ) $ 35,368 Corporate debt securities 29,841 3 (68 ) 29,776 U.S. government agency securities 37,866 - (125 ) 37,741 Certificates of deposit/time deposits 5,456 1 (25 ) 5,432 Total marketable securities $ 108,552 $ 27 $ (261 ) $ 108,318 December 31, 2016 (in thousands) Cost Unrealized Gains Unrealized Losses Fair Value U.S. municipal securities $ 46,578 $ 1 $ (187 ) $ 46,392 Corporate debt securities 38,490 2 (147 ) 38,345 U.S. government agency securities 31,706 1 (141 ) 31,566 Certificates of deposit/time deposits 7,182 12 (22 ) 7,172 Total marketable securities $ 123,956 $ 16 $ (497 ) $ 123,475
Investments Classified by Contractual Maturity Date [Table Text Block]	September 30, (in thousands) 2017 Due in one year or less $ 53,201 Due after one year through five years 55,351 Total marketable securities $ 108,552

Note 7 - Inventory (Tables)

Note 7 - Inventory (Tables)	9 Months Ended
	Sep. 30, 2017
Notes Tables
Schedule of Inventory, Current [Table Text Block]	September 30, December 31, (in thousands) 2017 2016 Raw materials $ 8,653 $ 8,057 Work in process 1,531 1,531 Total inventory 10,184 9,588 Allowance for obsolescence (395 ) (278 ) Inventory, net of allowance $ 9,789 $ 9,310

Note 8 - Stock-based Compensa23

Note 8 - Stock-based Compensation (Tables)	9 Months Ended
	Sep. 30, 2017
Notes Tables
Share-based Compensation, Stock Options, Activity [Table Text Block]	Weighted- Average Stock Options Exercise Price Options outstanding at December 31, 2016 569,639 $ 45.00 Granted 43,095 58.35 Exercised (136,483 ) 34.82 Forfeited (16,943 ) 58.17 Options outstanding at September 30, 2017 459,308 $ 48.79 Exercisable at September 30, 2017 270,705 $ 40.54
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	Nine Months Ended September 30, 2017 2016 Risk-free interest rate 2.24% 1.53 - 1.68% Expected life (years) 6.50 6.50 Expected volatility 44.68% 44.38 - 45.93% Expected dividend yield 0% 0%
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block]	Weighted- Average Grant Date Restricted Fair Value Stock Per Share Restricted stock at December 31, 2016 215,105 $ 62.78 Granted 197,649 61.60 Restrictions lapsed (55,205 ) 63.62 Forfeited (13,074 ) 63.51 Restricted stock at September 30, 2017 344,475 $ 61.94
Schedule of Nonvested Performance-based Units Activity [Table Text Block]	Weighted- Average Grant Date Performance Fair Value Stock Per Share Performance stock at December 31, 2016 - $ - Granted 25,707 58.35 Restrictions lapsed - - Forfeited - - Performance stock at September 30, 2017 25,707 $ 58.35
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block]	Nine Months Ended September 30, 2017 2016 Risk-free interest rate 0.59% - 0.97% 0.39 - 0.56% Expected life (months) 6.00 6.00 Expected volatility 34.51% - 39.51% 29.41 - 49.13% Expected dividend yield 0% 0%

Note 9 - Accumulated Other Co24

Note 9 - Accumulated Other Comprehensive Loss (Tables)	9 Months Ended
	Sep. 30, 2017
Notes Tables
Comprehensive Income (Loss) [Table Text Block]	Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2017 2016 2017 2016 Foreign currency translation adjustments Balance at beginning of period $ (7,404 ) $ (6,612 ) $ (10,753 ) $ (5,212 ) Other comprehensive income (loss) before reclassifications 1,655 (154 ) 5,004 (1,554 ) Amounts reclassified from accumulated other comprehensive loss - - - - Net current-period other comprehensive income (loss) 1,655 (154 ) 5,004 (1,554 ) Balance at end of period $ (5,749 ) $ (6,766 ) $ (5,749 ) $ (6,766 )

Note 11 - Segment Reporting (Ta

Note 11 - Segment Reporting (Tables)	9 Months Ended
	Sep. 30, 2017
Notes Tables
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block]	Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2017 2016 2017 2016 Revenue: United States $ 67,490 $ 59,574 $ 191,019 $ 169,364 Europe 18,094 15,610 51,224 48,518 Japan 2,521 2,989 8,069 7,820 Total revenue $ 88,105 $ 78,173 $ 250,312 $ 225,702
Income from Operations by Geographic Area [Table Text Block]	Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2017 2016 2017 2016 Income from Operations: United States $ 26,903 $ 23,910 $ 76,973 $ 67,542 Europe 3,251 3,554 9,626 9,369 Corporate Unallocated and Japan (10,787 ) (10,522 ) (33,148 ) (29,975 ) Total income from operations $ 19,367 $ 16,942 $ 53,451 $ 46,936
Long-lived Assets by Geographic Areas [Table Text Block]	September 30, December 31, (in thousands) 2017 2016 Total long-lived assets: United States $ 113,784 $ 108,650 Europe 32,115 23,199 Japan 7,613 7,625 Total assets $ 153,512 $ 139,474

Note 2 - Recent Accounting Pr26

Note 2 - Recent Accounting Pronouncements (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Tax Expense (Benefit)	$ 6,438	$ 5,585	$ 17,724	$ 15,943
Accounting Standards Update 2016-09 [Member]
Income Tax Expense (Benefit)	$ (100)		(300)
Reclassification of Cash Flows Related to Excess Tax Benefits from Financing Activities to Operating Activity [Member] | Nine Months Ended September 30, 2016 [Member]
Prior Period Reclassification Adjustment			$ 2,000

Note 3 - Net Income Per Commo27

Note 3 - Net Income Per Common Share - Computation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Net income	$ 13,220	$ 11,982	$ 37,506	$ 33,335
Basic - weighted-average shares outstanding: (in shares)	26,617,349	26,416,041	26,600,174	26,334,738
Employee stock options and other (in shares)	184,685	193,837	116,379	204,340
Diluted - weighted-average shares outstanding: (in shares)	26,802,034	26,609,878	26,716,553	26,539,078
Basic (in dollars per share)	$ 0.50	$ 0.45	$ 1.41	$ 1.27
Diluted (in dollars per share)	$ 0.49	$ 0.45	$ 1.40	$ 1.26

Note 4 - Goodwill and Other I28

Note 4 - Goodwill and Other Intangible Assets (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Goodwill, Period Increase (Decrease)	$ 0		$ 0
Amortization of Intangible Assets	$ 100	$ 200	$ 400	$ 500

Note 4 - Goodwill and Other I29

Note 4 - Goodwill and Other Intangible Assets - Intangible Assets Other Than Goodwill (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Intangible Assets with finite lives:
Gross	$ 4,580	$ 4,580
Accumulated amortization	(2,319)	(1,925)
Net	2,261	2,655
Marketing-Related Intangible Assets [Member]
Intangible Assets with finite lives:
Gross	930	930
Accumulated amortization	(318)	(248)
Net	$ 612	682
Useful life (Year)	10 years
Weighted average useful life remaining (Year)	6 years 219 days
Noncompete Agreements [Member]
Intangible Assets with finite lives:
Gross	$ 190	190
Accumulated amortization	(190)	(190)
Net
Useful life (Year)	2 years
Weighted average useful life remaining (Year)
Trade Secrets [Member]
Intangible Assets with finite lives:
Gross	$ 250	250
Accumulated amortization	(171)	(133)
Net	$ 79	117
Useful life (Year)	5 years
Weighted average useful life remaining (Year)	1 year 219 days
Computer Software, Intangible Asset [Member]
Intangible Assets with finite lives:
Gross	$ 680	680
Accumulated amortization	(680)	(604)
Net		76
Useful life (Year)	3 years
Weighted average useful life remaining (Year)
Customer Relationships [Member]
Intangible Assets with finite lives:
Gross	$ 2,530	2,530
Accumulated amortization	(960)	(750)
Net	$ 1,570	$ 1,780
Useful life (Year)	9 years
Weighted average useful life remaining (Year)	5 years 219 days

Note 4 - Goodwill and Other I30

Note 4 - Goodwill and Other Intangible Assets - Estimated Aggregated Amortization Expense (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Remaining 2,017	$ 106
2,018	424
2,019	391
2,020	374
2,021	374
Thereafter	592
Total estimated amortization expense	$ 2,261	$ 2,655

Note 5 - Fair Value Measureme31

Note 5 - Fair Value Measurements - Fair Value of Financial Assets Measured on a Recurring Basis (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Fair Value, Inputs, Level 1 [Member]
Cash and cash equivalents:
Money market mutual fund	$ 26,187	$ 11,771
Total	26,187	11,771
Fair Value, Inputs, Level 2 [Member]
Cash and cash equivalents:
Money market mutual fund
Total
Fair Value, Inputs, Level 3 [Member]
Cash and cash equivalents:
Money market mutual fund
Total

Note 6 - Marketable Securitie32

Note 6 - Marketable Securities - Short-term and Long-term Marketable Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Amortized Cost	$ 108,552	$ 123,956
Unrealized Gains	27	16
Unrealized Losses	(261)	(497)
Fair Value	108,318	123,475
Bank Time Deposits [Member]
Amortized Cost	5,456	7,182
Unrealized Gains	1	12
Unrealized Losses	(25)	(22)
Fair Value	5,432	7,172
US States and Political Subdivisions Debt Securities [Member]
Amortized Cost	35,388	46,578
Unrealized Gains	23	1
Unrealized Losses	(43)	(187)
Fair Value	35,368	46,392
Corporate Debt Securities [Member]
Amortized Cost	29,841	38,490
Unrealized Gains	3	2
Unrealized Losses	(68)	(147)
Fair Value	29,776	38,345
US Government Agencies Debt Securities [Member]
Amortized Cost	37,866	31,706
Unrealized Gains		1
Unrealized Losses	(125)	(141)
Fair Value	$ 37,741	$ 31,566

Note 6 - Marketable Securitie33

Note 6 - Marketable Securities - Balance of Held-to-maturity Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Due in one year or less	$ 53,201
Due after one year through five years	55,351
Total marketable securities	$ 108,552	$ 123,956

Note 7 - Inventory - Inventory

Note 7 - Inventory - Inventory (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Raw materials	$ 8,653	$ 8,057
Work in process	1,531	1,531
Total inventory	10,184	9,588
Allowance for obsolescence	(395)	(278)
Inventory, net of allowance	$ 9,789	$ 9,310

Note 8 - Stock-based Compensa35

Note 8 - Stock-based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period			10 years
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Offering Date			15.00%
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period			180 days
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent			85.00%
Share-based Compensation	$ 2,200	$ 1,700	$ 6,159	$ 5,260
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			5 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value			$ 27.57
Percentage of Accruing Stock-based Compensation Expense for PSUs	100.00%		100.00%
Employee Stock Option [Member]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 4,300		$ 4,300
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition			2 years 292 days
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			5 years
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 18,700		$ 18,700
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition			3 years 292 days
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			3 years
Percentage of Target Number Capable of Being Earned and Vesting, Lower Limit	0.00%		0.00%
Percentage of Target Number Capable of Being Earned and Vesting, Upper Limit	150.00%		150.00%

Note 8 - Stock-based Compensa36

Note 8 - Stock-based Compensation - Stock Option Activity (Details)	9 Months Ended
	Sep. 30, 2017$ / sharesshares
Options outstanding (in shares) | shares	569,639
Options outstanding, weighted- average exercise price (in dollars per share) | $ / shares	$ 45
Granted (in shares) | shares	43,095
Granted, weighted- average exercise price (in dollars per share) | $ / shares	$ 58.35
Exercised (in shares) | shares	(136,483)
Exercised, weighted- average exercise price (in dollars per share) | $ / shares	$ 34.82
Forfeited (in shares) | shares	(16,943)
Forfeited, weighted- average exercise price (in dollars per share) | $ / shares	$ 58.17
Options outstanding (in shares) | shares	459,308
Options outstanding, weighted- average exercise price (in dollars per share) | $ / shares	$ 48.79
Options exercisable (in shares) | shares	270,705
Options exercisable, weighted- average exercise price (in dollars per share) | $ / shares	$ 40.54

Note 8 - Stock-based Compensa37

Note 8 - Stock-based Compensation - Assumptions Used in the Black-scholes Option Pricing Model (Details) - Employee Stock Option [Member]	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Risk-free interest rate	2.24%
Risk-free interest rate, minimum		1.53%
Risk-free interest rate, maximum		1.68%
Expected life (Year)	6 years 182 days	6 years 182 days
Expected volatility	44.68%
Expected volatility, minimum		44.38%
Expected volatility, maximum		45.93%
Expected dividend yield	0.00%	0.00%

Note 8 - Stock-based Compensa38

Note 8 - Stock-based Compensation - Non-vested Restricted Stock Options (Details) - Restricted Stock [Member]	9 Months Ended
	Sep. 30, 2017$ / sharesshares
Restricted stock (in shares) | shares	215,105
Restricted stock, weighted-average grant date fair value (in dollars per share) | $ / shares	$ 62.78
Granted (in shares) | shares	197,649
Granted, weighted-average grant date fair value (in dollars per share) | $ / shares	$ 61.60
Restrictions lapsed (in shares) | shares	(55,205)
Restrictions lapsed, weighted-average grant date fair value (in dollars per share) | $ / shares	$ 63.62
Forfeited (in shares) | shares	(13,074)
Forfeited, weighted-average grant date fair value (in dollars per share) | $ / shares	$ 63.51
Restricted stock (in shares) | shares	344,475
Restricted stock, weighted-average grant date fair value (in dollars per share) | $ / shares	$ 61.94

Note 8 - Stock-based Compensa39

Note 8 - Stock-based Compensation - Performance Stock (Details) - Performance Shares [Member]	9 Months Ended
	Sep. 30, 2017$ / sharesshares
Restricted stock (in shares) | shares
Restricted stock, weighted-average grant date fair value (in dollars per share) | $ / shares
Granted (in shares) | shares	25,707
Granted, weighted-average grant date fair value (in dollars per share) | $ / shares	$ 58.35
Restrictions lapsed (in shares) | shares
Restrictions lapsed, weighted-average grant date fair value (in dollars per share) | $ / shares
Forfeited (in shares) | shares
Forfeited, weighted-average grant date fair value (in dollars per share) | $ / shares
Restricted stock (in shares) | shares	25,707
Restricted stock, weighted-average grant date fair value (in dollars per share) | $ / shares	$ 58.35

Note 8 - Stock-based Compensa40

Note 8 - Stock-based Compensation - Assumptions Used to Estimate the Fair Value of the ESPP (Details) - ESPP [Member]	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Risk-free interest rate, minimum	0.59%	0.39%
Risk-free interest rate, maximum	0.97%	0.56%
Expected life (Year)	180 days	180 days
Expected volatility, minimum	34.51%	29.41%
Expected volatility, maximum	39.51%	49.13%
Expected dividend yield	0.00%	0.00%

Note 9 - Accumulated Other Co41

Note 9 - Accumulated Other Comprehensive Loss - Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Balance beginning of period			$ 379,833
Balance at end of period	$ 429,839		429,839
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]
Balance beginning of period	(7,404)	$ (6,612)	(10,753)	$ (5,212)
Other comprehensive income (loss) before reclassifications	1,655	(154)	5,004	(1,554)
Amounts reclassified from accumulated other comprehensive loss	0	0	0	0
Net current-period other comprehensive income (loss)	1,655	(154)	5,004	(1,554)
Balance at end of period	$ (5,749)	$ (6,766)	$ (5,749)	$ (6,766)

Note 10 - Income Taxes (Details

Note 10 - Income Taxes (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Income Tax Expense (Benefit)	$ 6,438	$ 5,585	$ 17,724	$ 15,943
Effective Income Tax Rate Reconciliation, Percent	32.80%	31.80%	32.10%	32.40%
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	35.00%		35.00%
Unrecognized Tax Benefits	$ 4,000		$ 4,000		$ 3,800

Note 11 - Segment Reporting - R

Note 11 - Segment Reporting - Revenue to External Customers and Long-lived Assets by Geography (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenues	$ 88,105	$ 78,173	$ 250,312	$ 225,702
Operating Segments [Member] | United States Segment [Member]
Revenues	67,490	59,574	191,019	169,364
Operating Segments [Member] | Europe Segment [Member]
Revenues	18,094	15,610	51,224	48,518
Operating Segments [Member] | Japan Segment [Member]
Revenues	$ 2,521	$ 2,989	$ 8,069	$ 7,820

Note 11 - Segment Reporting - I

Note 11 - Segment Reporting - Income From Operations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income from operations	$ 19,367	$ 16,942	$ 53,451	$ 46,936
Operating Segments [Member] | United States Segment [Member]
Income from operations	26,903	23,910	76,973	67,542
Operating Segments [Member] | Europe Segment [Member]
Income from operations	3,251	3,554	9,626	9,369
Corporate and Reconciling Items [Member] | Corporate Unallocated and Japan Segment[Member]
Income from operations	$ (10,787)	$ (10,522)	$ (33,148)	$ (29,975)

Note 11 - Segment Reporting - L

Note 11 - Segment Reporting - Long-lived Assets by Geographic Region (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Property and equipment, net	$ 153,512	$ 139,474
Operating Segments [Member] | United States Segment [Member]
Property and equipment, net	113,784	108,650
Operating Segments [Member] | Europe Segment [Member]
Property and equipment, net	32,115	23,199
Operating Segments [Member] | Japan Segment [Member]
Property and equipment, net	$ 7,613	$ 7,625