Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 14, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'QUIDEL CORP /DE/ | ' |
Entity Central Index Key | '0000353569 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Name | 'QDEL | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus (Q1,Q2,Q3,FY) | 'Q3 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 34,410,771 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $17,365 | $8,388 |
Accounts receivable, net | 24,458 | 29,928 |
Inventories | 23,514 | 27,639 |
Deferred tax asset—current | 14,766 | 8,362 |
Restricted cash | 6,047 | 969 |
Prepaid expenses and other current assets | 3,568 | 3,333 |
Total current assets | 89,718 | 78,619 |
Property, plant and equipment, net | 48,886 | 48,057 |
Goodwill | 80,763 | 80,763 |
Intangible assets, net | 46,871 | 62,262 |
Other non-current assets | 1,499 | 1,784 |
Total assets | 267,737 | 271,485 |
Current liabilities: | ' | ' |
Accounts payable | 6,265 | 6,950 |
Accrued payroll and related expenses | 7,387 | 7,485 |
Current portion of lease obligation | 491 | 441 |
Current portion of contingent consideration (see Note 9) | 619 | 1,493 |
Deferred grant revenue | 7,913 | 2,029 |
Other current liabilities | 8,444 | 5,611 |
Total current liabilities | 31,119 | 24,009 |
Lease obligation, net of current portion | 4,750 | 5,126 |
Contingent consideration—non-current (see Note 9) | 6,100 | 7,315 |
Deferred tax liability—non-current | 3,481 | 6,318 |
Income taxes payable | 1,964 | 2,118 |
Deferred rent | 2,165 | 1,746 |
Other non-current liabilities | 784 | 1,074 |
Commitments and contingencies (see Note 9) | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, $.001 par value per share; 5,000 shares authorized; none issued or outstanding at September 30, 2014 and December 31, 2013 | 0 | 0 |
Common stock, $.001 par value per share; 50,000 shares authorized; 34,404 and 34,073 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively | 34 | 34 |
Additional paid-in capital | 208,838 | 201,021 |
Accumulated other comprehensive (loss) income | -17 | 18 |
Retained earnings | 8,519 | 22,706 |
Total stockholders’ equity | 217,374 | 223,779 |
Total liabilities and stockholders’ equity | $267,737 | $271,485 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Preferred stock, par value per share | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
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 | 50,000,000 | 50,000,000 |
Common stock, shares issued | 34,404,000 | 34,073,000 |
Common stock, shares outstanding | 34,404,000 | 34,073,000 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Total revenues | $40,857 | $33,539 | $119,018 | $125,240 |
Costs and expenses | ' | ' | ' | ' |
Cost of sales (excludes amortization of intangible assets of $1,571, $1,547, $4,713 and $4,496, respectively) | 16,768 | 15,297 | 52,917 | 48,297 |
Research and development | 11,506 | 7,462 | 28,714 | 22,896 |
Sales and marketing | 11,060 | 8,658 | 30,380 | 24,162 |
General and administrative | 5,879 | 5,622 | 18,949 | 18,828 |
Amortization of intangible assets from acquired businesses and technology | 2,207 | 2,171 | 6,623 | 5,957 |
Impairment loss | 3,558 | 0 | 3,558 | 0 |
Facility restructuring charge | 0 | 124 | 0 | 493 |
Total costs and expenses | 50,978 | 39,334 | 141,141 | 120,633 |
Operating (loss) income | -10,121 | -5,795 | -22,123 | 4,607 |
Interest expense, net | -224 | -361 | -955 | -1,084 |
(Loss) income before taxes | -10,345 | -6,156 | -23,078 | 3,523 |
Benefit for income taxes | -4,578 | -1,795 | -8,891 | -2,728 |
Net (loss) income | ($5,767) | ($4,361) | ($14,187) | $6,251 |
Basic (loss) earnings per share | ($0.17) | ($0.13) | ($0.41) | $0.18 |
Diluted (loss) earnings per share | ($0.17) | ($0.13) | ($0.41) | $0.18 |
Shares used in basic per share calculation | 34,480 | 33,975 | 34,340 | 33,774 |
Shares used in diluted per share calculation | 34,480 | 33,975 | 34,340 | 34,834 |
Consolidated_Statements_of_Ope1
Consolidated Statements of Operations (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Amortization of intangible assets | $1,571 | $1,547 | $4,713 | $4,496 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive (Loss) Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net (loss) income | ($5,767) | ($4,361) | ($14,187) | $6,251 |
Other comprehensive (loss) income, net of tax | ' | ' | ' | ' |
Changes in cumulative translation adjustment | -20 | 0 | -35 | 0 |
Comprehensive (loss) income | ($5,787) | ($4,361) | ($14,222) | $6,251 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
OPERATING ACTIVITIES: | ' | ' |
Net (loss) income | ($14,187) | $6,251 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ' | ' |
Depreciation, amortization and other | 20,578 | 18,457 |
Impairment loss | 3,558 | 0 |
Stock-based compensation expense | 4,772 | 5,447 |
Change in deferred tax assets and liabilities | -9,241 | 3,450 |
Excess tax benefit from share-based compensation | ' | -937 |
Change in fair value of acquisition contingencies | 42 | ' |
Changes in assets and liabilities: | ' | ' |
Accounts receivable | 5,464 | 13,200 |
Inventories | 4,115 | -11,700 |
Income taxes receivable | 153 | -4,878 |
Prepaid expenses and other current and non-current assets | -365 | 270 |
Restricted cash | -5,078 | 2,156 |
Accounts payable | -780 | -842 |
Accrued payroll and related expenses | 406 | 636 |
Income taxes payable | 119 | -3,435 |
Deferred grant revenue | 5,884 | -1,936 |
Other current and non-current liabilities | 2,038 | -1,921 |
Net cash provided by operating activities | 17,478 | 24,218 |
INVESTING ACTIVITIES: | ' | ' |
Acquisitions of property and equipment | -8,492 | -16,942 |
Acquisition of BioHelix, net of cash acquired | 0 | -9,184 |
Acquisition of AnDiaTec | 0 | -2,271 |
Acquisition of intangibles | -92 | -1,363 |
Net cash used for investing activities | -8,584 | -29,760 |
FINANCING ACTIVITIES: | ' | ' |
Payments on lease obligation | -326 | -280 |
Repurchases of common stock | -1,956 | -991 |
Proceeds from issuance of common stock | 4,503 | 6,268 |
Excess tax benefit from share-based compensation | 0 | 937 |
Payment on line of credit | 0 | -5,000 |
Payments on acquisition contingencies | -2,112 | ' |
Net cash provided by financing activities | 109 | 934 |
Effect of exchange rates on cash | -26 | 0 |
Net increase (decrease) in cash and cash equivalents | 8,977 | -4,608 |
Cash and cash equivalents, beginning of period | 8,388 | 14,856 |
Cash and cash equivalents, end of period | 17,365 | 10,248 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ' | ' |
Cash paid for interest | 725 | 825 |
Cash paid for income taxes | 467 | 1,900 |
NON-CASH INVESTING ACTIVITIES: | ' | ' |
Purchase of capital equipment by incurring current liabilities | 269 | 767 |
NON-CASH FINANCING ACTIVITIES: | ' | ' |
Reduction of other current liabilities upon issuance of restricted share units | $663 | $456 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies | |
Basis of Presentation | |
The accompanying unaudited consolidated financial statements of Quidel Corporation and its subsidiaries (the “Company”) have been prepared in accordance with generally accepted accounting principles in the U.S. for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the U.S. for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation (consisting of normal recurring accruals) have been included. | |
The information at September 30, 2014, and for the three and nine months ended September 30, 2014 and 2013, is unaudited. For further information, refer to the Company’s consolidated financial statements and footnotes thereto for the year ended December 31, 2013 included in the Company’s 2013 Annual Report on Form 10-K. Operating results for any quarter are historically seasonal in nature and are not necessarily indicative of the results expected for the full year. | |
The Company reclassified $0.2 million and $0.5 million from general and administrative expense to interest expense for the three and nine months ended September 30, 2013, respectively, to conform to current year presentation. These reclassifications had no impact on net earnings or on the previously reported financial position of the Company. | |
For 2014 and 2013, the Company’s fiscal year will end or has ended on December 28, 2014 and December 29, 2013, respectively. For 2014 and 2013, the Company’s third quarter ended on September 28, 2014 and September 29, 2013, respectively. For ease of reference, the calendar quarter end dates are used herein. The three and nine month periods ended September 30, 2014 and 2013 each included 13 and 39 weeks, respectively. | |
Comprehensive (Loss) Income | |
Comprehensive (loss) income includes foreign currency translation adjustments excluded from the Company’s Consolidated Statements of Operations. | |
Use of Estimates | |
The preparation of financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, management evaluates its estimates, including those related to revenue recognition, customer programs and incentives, bad debts, inventories, intangible assets, software development costs, stock-based compensation, restructuring, contingencies and litigation, contingent consideration, and income taxes. Management bases its estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. | |
Revenue Recognition | |
The Company records revenues primarily from product sales. These revenues are recorded net of rebates and other discounts which are estimated at the time of sale, and are largely driven by various customer program offerings, including special pricing agreements, promotions and other volume-based incentives. Revenue from product sales are recorded upon passage of title and risk of loss to the customer. Change in title to the product and recognition of revenue occurs upon delivery to the customer when sales terms are free on board (“FOB”) destination and at the time of shipment when the sales terms are FOB shipping point and there is no right of return. | |
A portion of product sales include revenues for diagnostic kits, which are utilized on leased instrument systems under the Company’s “reagent rental” program. The reagent rental program provides customers the right to use the instruments at no separate cost to the customer in consideration for a multi-year agreement to purchase annual minimum amounts of consumables (“reagents” or “diagnostic kits”). When an instrument is placed with a customer under a reagent rental agreement, the Company retains title to the equipment and it remains capitalized on the Company’s Consolidated Balance Sheet as property and equipment. The instrument is depreciated on a straight-line basis over the shorter of the lease term or the life of the instrument. Depreciation expense is recorded in cost of sales included in the Consolidated Statements of Operations. The reagent rental agreements represent one unit of accounting as the instrument and consumables (reagents) are interdependent in producing a diagnostic result and neither has a stand-alone value with respect to these agreements. No revenue is recognized at the time of instrument placement. All revenue is recognized when the title and risk of loss for the diagnostic kits have passed to the customer. | |
Royalty income from the grant of license rights is recognized during the period in which the revenue is earned and the amount is determinable from the licensee. The Company also earns income from the licensing of technology. | |
The Company earns income from grants for research and commercialization activities. On November 6, 2012, the Company was awarded a milestone-based grant totaling up to $8.3 million from the Bill and Melinda Gates Foundation to | |
develop, manufacture and validate a quantitative, low-cost, nucleic acid assay for HIV drug treatment monitoring on the integrated Savanna™ MDx platform for use in limited resource settings. Upon execution of the grant agreement, the Company received $2.6 million to fund subsequent research and development activities and received milestone payments totaling $2.5 million in 2013. On September 10, 2014, the Company entered into an amended grant agreement with the Bill and Melinda Gates Foundation for additional funding of up to $12.6 million in order to accelerate the development of the Savanna MDx platform in the developing world. Upon execution of the amended grant agreement, the Company received $10.6 million in cash and expects to receive milestone payments of up to $5.2 million in 2015. The Company recognizes grant revenue on the lesser of the amount recognized on a proportional performance basis or the amount of cash payments that are non-refundable as of the end of each reporting period. The Company recognized $3.4 million and $0.6 million for the three months ended September 30, 2014 and 2013, respectively, as grant revenue associated with this grant. The Company recognized $4.7 million and $1.9 million for the nine months ended September 30, 2014 and 2013, respectively, as grant revenue associated with this grant. The Company classified $6.0 million and $1.0 million of funds received from the Bill and Melinda Gates Foundation as restricted cash as of September 30, 2014 and December 31, 2013, respectively. In addition, the Company has classified $7.9 million and $2.0 million as deferred grant revenue as of September 30, 2014 and December 31, 2013, respectively. | |
Fair Value Measurements | |
The Company uses the fair value hierarchy established in ASC Topic 820, Fair Value Measurements and Disclosures, that requires the valuation of assets and liabilities subject to fair value measurements using a three tiered approach and fair value measurement be classified and disclosed by the Company in one of the following three categories: | |
Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; | |
Level 2: Quoted prices for similar assets and liabilities in active markets, quoted prices for identical assets and liabilities in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; and | |
Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e. supported by little or no market activity). | |
The carrying amounts of the Company’s financial instruments, including cash, receivables, accounts payable, and accrued liabilities approximate their fair values due to their short-term nature. Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of trade accounts receivable. The Company establishes reserves for estimated uncollectible accounts and believes its reserves are adequate. | |
Collaborative Arrangement | |
In July 2012, the Company entered into a collaborative arrangement with Life Technologies Corporation for the development of molecular assays. ASC Topic 808, Collaborative Arrangements (“ASC 808”), defines a collaborative arrangement as an arrangement where the parties are active participants and have exposure to significant risks. The Company is accounting for the joint development and commercialization activities with the third-party as a joint risk sharing collaboration in accordance with ASC 808. Payments received from Life Technologies Corporation totaled $3.0 million in 2012, $1.4 million in 2013, and a $0.4 million payment in July 2014. The Company does not expect additional payments during the remainder of 2014, as the development efforts are complete. The reimbursement represents approximately 50% of project development costs based upon mutually agreed upon project plans for each molecular assay. The reimbursements are recorded as a reduction to research and development expense in the accompanying consolidated financial statements, to the extent that they are less than related expenditures for research and development activities subsequent to the date of the contract. The Company recognized $0.3 million of such reimbursements as a reduction to research and development expense during the three months ended September 30, 2013. The Company recognized no such reimbursements as a reduction to research and development expense for the three months ended September 30, 2014. The Company recognized $0.4 million and $1.4 million of such reimbursements as a reduction to research and development expense for the nine months ended September 30, 2014 and 2013, respectively. | |
In March 2013, the Company entered into a six year instrument supply agreement (the “March 2013 Agreement”) with Life Technologies Corporation. Pursuant to the March 2013 Agreement, the Company paid $0.8 million for distribution rights to sell Life Technologies Corporation’s QuantStudio™ DX diagnostic laboratory instrument for use in the infectious disease field, along with the assays developed under the collaborative agreement. The distribution rights are included in intangible assets on the Consolidated Balance Sheets and are being amortized on a straight-line basis over the contractual term of six years. | |
Recent Accounting Pronouncements | |
In May 2014, the FASB issued guidance codified in ASC Topic 606, Revenue Recognition - Revenue from Contracts with Customers, which amends the guidance in former ASC Topic 605, Revenue Recognition. This guidance is intended to improve and converge with international standards the financial reporting requirements for revenue from contracts with customers. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under current authoritative guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The guidance is effective for annual reporting periods beginning after December 15, 2016, with early adoption prohibited. The Company is currently evaluating the impact of this guidance and expects to adopt the standard in the first quarter of 2017. | |
In August 2014, the FASB issued guidance codified in ASU 2014-15 (Subtopic 205-40), Presentation of Financial Statements - Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The guidance requires management to evaluate whether there are conditions and events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the financial statements are issued (or available to be issued when applicable). Management will be required to make this evaluation for both annual and interim reporting periods and will have to make certain disclosures if it concludes that substantial doubt exists or when its plans alleviate substantial doubt about the entity’s ability to continue as a going concern. Substantial doubt exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due within one year after the date that the financial statements are issued (or available to be issued). The term probable is used consistently with its use in ASC Topic 450, Contingencies. The guidance is effective for annual periods ending after December 15, 2016 and for interim reporting periods starting in the first quarter 2017, with early adoption permitted. The Company is currently evaluating the impact of this guidance and expects to adopt the standard for the annual reporting period ended December 31, 2016. |
Computation_of_Loss_Earnings_P
Computation of (Loss) Earnings Per Share | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Earnings Per Share [Abstract] | ' | |||
Computation of (Loss) Earnings Per Share | ' | |||
Computation of (Loss) Earnings Per Share | ||||
For the three and nine months ended September 30, 2014, basic (loss) earnings per share were computed by dividing net (loss) earnings by the weighted-average number of common shares outstanding, including vested restricted stock awards, during the period. Diluted earnings per share reflects the potential dilution that could occur if the earnings were divided by the weighted-average number of common shares and potentially dilutive common shares from outstanding stock options as well as unvested restricted stock awards. Potential dilutive common shares were calculated using the treasury stock method and represent incremental shares issuable upon exercise of the Company’s outstanding stock options and unvested restricted stock awards. For periods in which the Company incurs losses, potentially dilutive shares are not considered in the calculation of net loss per share as their effect would be anti-dilutive. For periods in which the Company has earnings, stock options are excluded from the calculation of diluted net income per share when the combined exercise price, unrecognized stock-based compensation and expected tax benefits upon exercise are greater than the average market price for the Company’s common stock because their effect is anti-dilutive. For the three and nine months ended September 30, 2014, there were no differences between the number of common shares used for the basic and diluted earnings per share (“EPS”) computation as the Company incurred a net loss. For the three and nine months ended September 30, 2014, 1.0 million and 1.1 million, respectively, stock options and shares of restricted stock were excluded from diluted loss per share that would have been included if the Company had been in a net income position. Additionally, stock options totaling 1.2 million and 1.1 million for the three and nine months ended September 30, 2014, respectively, were not included in the computation of diluted EPS because the exercise of such options would be anti-dilutive. For the three and nine months ended September 30, 2014, there were no participating securities. As such, the treasury stock method was applied in calculating EPS rather than the more dilutive of the treasury stock or the two-class method, as performed in previous periods. | ||||
For the three and nine months ended September 30, 2013, diluted net income per share was reported based on the more dilutive of the treasury stock or the two-class method. Under the two-class method, net income is allocated to common stock and participating securities. For the nine months ended September 30, 2013, the Company’s unvested restricted stock awards and certain unvested restricted stock units met the definition of participating securities. Basic net income per share under the two-class method was computed by dividing net income adjusted for earnings allocated to unvested stockholders for the period by the weighted average number of common shares outstanding during the period. Diluted net income per share under the two-class method was computed by dividing net income adjusted for earnings allocated to unvested stockholders for the period by the weighted average number of common and common equivalent shares outstanding during the period. The Company excludes stock options from the calculation of diluted net income per share when the combined exercise price, unrecognized stock-based compensation and expected tax benefits upon exercise are greater than the average market price for the Company’s common stock because their effect is anti-dilutive. Stock options totaling 0.6 million and 0.5 million for the three and nine months ended September 30, 2013 were not included in the computation of diluted EPS because the exercise of such options would be anti-dilutive. Due to the fact that the holders of participating securities are not contractually required to share in the Company's losses, no allocation to participating securities was made for periods in which the Company incurred a net loss in applying the two-class method to compute basic net loss per common share. For the three months ended September 30, 2013, 1.2 million stock options and shares of restricted stock were excluded from diluted loss per share that would have been included if the Company had been in a net income position. | ||||
The following table sets forth the computation of basic and diluted EPS for the nine months ended September 30, 2013 (in thousands, except per share amounts): | ||||
2013 | ||||
Basic net income per share: | ||||
Net income | $ | 6,251 | ||
Less: income allocated to participating securities | (16 | ) | ||
Net income allocated to common stockholders | $ | 6,235 | ||
Weighted average common shares outstanding — basic | 33,774 | |||
Net income per share — basic | $ | 0.18 | ||
Diluted net income per share: | ||||
Net income | $ | 6,251 | ||
Less: income allocated to participating securities | (16 | ) | ||
Net income allocated to common stockholders | $ | 6,235 | ||
Weighted average common shares outstanding — basic | 33,774 | |||
Dilutive securities | 1,060 | |||
Weighted average common shares outstanding — diluted | 34,834 | |||
Net income per share — diluted | $ | 0.18 | ||
Inventories
Inventories | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories | ||||||||
Inventories are recorded at the lower of cost (first-in, first-out) or market. Inventories consisted of the following, net of reserves of $1.4 million and $0.6 million at September 30, 2014 and December 31, 2013, respectively (in thousands): | ||||||||
30-Sep-14 | 31-Dec-13 | |||||||
Raw materials | $ | 10,068 | $ | 11,938 | ||||
Work-in-process (materials, labor and overhead) | 8,780 | 9,831 | ||||||
Finished goods (materials, labor and overhead) | 4,666 | 5,870 | ||||||
Total inventories | $ | 23,514 | $ | 27,639 | ||||
Other_Current_Liabilities
Other Current Liabilities | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Text Block [Abstract] | ' | |||||||
Other Current Liabilities | ' | |||||||
Other Current Liabilities | ||||||||
Other current liabilities consist of the following (in thousands): | ||||||||
September 30, 2014 | 31-Dec-13 | |||||||
Customer incentives | $ | 3,762 | $ | 3,068 | ||||
Accrued research and development costs | 1,981 | 240 | ||||||
Other | 2,701 | 2,303 | ||||||
Total other current liabilities | $ | 8,444 | $ | 5,611 | ||||
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
The Company recognized an income tax benefit of $4.6 million and $1.8 million for the three months ended September 30, 2014 and 2013, which represents an effective tax rate of 44% and 29%, respectively. For the nine months ended September 30, 2014 and 2013, the Company recognized an income tax benefit of $8.9 million and $2.7 million, respectively. The effective tax rates for the nine months ended September 30, 2014 and 2013 were 39% and (77)%, respectively. For the three and nine months September 30, 2014, the effective tax rate was higher largely as a result of discrete items. During the three months ended June 30, 2013, the Company was notified by the Internal Revenue Service that the Congressional Joint Committee of Taxation had completed its review and proposed no changes to the Company’s tax returns filed for the tax periods 2008 through 2010. As a result, the Company released tax reserves and related interest of approximately $3.5 million as a discrete item, which had the effect of increasing the tax benefit. Additionally, on January 3, 2013, the American Taxpayer Relief Act of 2012 was signed into law reinstating the federal research credit for the 2012 and 2013 years. Accordingly, the benefit related to the 2012 federal research credit of approximately $0.5 million was recorded in the first quarter of 2013 as a discrete item. The benefit related to 2013 research activities was included in the 2013 full year effective tax rate. The federal research credit expired for costs incurred subsequent to December 31, 2013, and as a result, there was no such benefit for the three and nine months ended September 30, 2014. | |
The Company is subject to periodic audits by domestic and foreign tax authorities. The Company’s federal tax years for 2011 and forward are subject to examination by the U.S. authorities. With few exceptions, the Company’s state and foreign tax years for 2000 and forward are subject to examination by tax authorities. The Company believes that it has appropriate support for the income tax positions taken on its tax returns and that its accruals for tax liabilities are adequate for all open years based on an assessment of many factors, including past experience and interpretations of tax law applied to the facts of each matter. |
Line_of_Credit
Line of Credit | 9 Months Ended |
Sep. 30, 2014 | |
Debt Disclosure [Abstract] | ' |
Line of Credit | ' |
Line of Credit | |
On August 10, 2012, the Company entered into an amended and restated $140.0 million senior secured syndicated credit facility (the “Senior Credit Facility”), which matures on August 10, 2017. As part of this amendment, the Company incurred an additional $1.0 million in deferred financing costs related to the Senior Credit Facility. The Company had previously recorded $0.6 million related to the prior credit facility. Deferred financing costs are amortized on a straight-line basis over the term of the Senior Credit Facility. As of September 30, 2014 and December 31, 2013, the Company had deferred financing costs of $0.9 million and $1.2 million, respectively, included as a portion of other non-current assets. The Senior Credit Facility bears interest at either the London Interbank Offered Rate (“LIBOR”) or the base rate, plus, in each case, an applicable margin. The base rate is equal to the highest of (i) the lender’s prime rate, (ii) the federal funds rate plus one-half of one percent and (iii) LIBOR plus one percent. The applicable margin is generally determined in accordance with a performance pricing grid based on the Company’s leverage ratio and ranges from 1.25% to 2.50% for LIBOR rate loans and from 0.25% to 1.50% for base rate loans. The agreement governing the Senior Credit Facility is subject to certain customary limitations, including among others: limitation on liens; limitation on mergers, consolidations and dispositions of assets; limitation on debt; limitation on dividends, stock redemptions and the redemption and/or prepayment of other debt; limitation on investments (including loans and advances) and acquisitions; and limitation on transactions with affiliates. The Company is also subject to financial covenants which include a funded debt to adjusted EBITDA ratio (as defined in the Senior Credit Facility, with adjusted EBITDA generally calculated as earnings before, among other adjustments, interest, taxes, depreciation, amortization, and stock-based compensation) not to exceed 3:1 as of the end of each fiscal quarter, and an interest coverage ratio of not less than 3:1 as of the end of each fiscal quarter. The Senior Credit Facility is secured by substantially all present and future assets and properties of the Company. | |
As of September 30, 2014 and December 31, 2013 the Company had no borrowings outstanding. The Company had $39.6 million available under the Senior Credit Facility as of September 30, 2014. The Company’s ability to borrow under the Senior Credit Facility fluctuates from time to time due to, among other factors, the Company’s borrowings under the facility and its funded debt to adjusted EBITDA ratio. As of September 30, 2014, the Company was in compliance with all financial covenants. |
Stockholders_Equity
Stockholders' Equity | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Stockholders' Equity | ' | ||||||||||||||||
Stockholders’ Equity | |||||||||||||||||
Issuances and Repurchases of Common Stock | |||||||||||||||||
During the nine months ended September 30, 2014, 136,372 shares of common stock were issued in conjunction with the vesting and release of restricted stock units, 222,174 shares of common stock were issued due to the exercise of stock options and 39,651 shares of common stock were issued in connection with the Company’s employee stock purchase plan (the “ESPP”), resulting in net proceeds to the Company of approximately $4.5 million. Additionally, during the nine months ended September 30, 2014, 68,368 shares of outstanding common stock with a value of $2.0 million were repurchased in connection with payment of minimum tax withholding obligations for certain employees relating to the lapse of restrictions on certain restricted stock awards. As of September 30, 2014, there was $50.0 million available under the Company’s share repurchase program, and there were no repurchases under the program during the nine months ended September 30, 2014. | |||||||||||||||||
Stock-Based Compensation | |||||||||||||||||
The compensation expense related to the Company’s stock-based compensation plans included in the accompanying Consolidated Statements of Operations was as follows (in millions): | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Cost of sales | $ | 0.1 | $ | 0.1 | $ | 0.4 | $ | 0.5 | |||||||||
Research and development | 0.2 | 0.4 | 0.8 | 1.1 | |||||||||||||
Sales and marketing | 0.2 | 0.2 | 0.7 | 0.5 | |||||||||||||
General and administrative | 0.8 | 0.7 | 2.9 | 3.3 | |||||||||||||
Total stock-based compensation expense | $ | 1.3 | $ | 1.4 | $ | 4.8 | $ | 5.4 | |||||||||
Total compensation expense recognized for the three months ended September 30, 2014 and 2013 includes $0.9 million and $0.8 million related to stock options and $0.4 million and $0.6 million related to restricted stock, respectively. Total compensation expense recognized for the nine months ended September 30, 2014 and 2013 includes $3.3 million and $3.1 million related to stock options and $1.5 million and $2.3 million related to restricted stock, respectively. As of September 30, 2014, total unrecognized compensation expense related to non-vested stock options was $6.7 million, which is expected to be recognized over a weighted-average period of approximately 2.3 years. As of September 30, 2014, total unrecognized compensation expense related to non-vested restricted stock was $1.7 million, which is expected to be recognized over a weighted-average period of approximately 2.7 years. Compensation expense capitalized to inventory and compensation expense related to the Company’s ESPP were not material for the three and nine months ended September 30, 2014 and 2013. | |||||||||||||||||
The estimated fair value of each stock option award was determined on the date of grant using the Black-Scholes option valuation model with the following weighted-average assumptions for the option grants. | |||||||||||||||||
Nine months ended September 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Risk-free interest rate | 1.59 | % | 0.86 | % | |||||||||||||
Expected option life (in years) | 5.77 | 5.53 | |||||||||||||||
Volatility rate | 42 | % | 44 | % | |||||||||||||
Dividend rate | — | % | — | % | |||||||||||||
The weighted-average grant date fair value of stock options granted during the nine months ended September 30, 2014 and 2013 was $10.95 and $9.19, respectively. The Company granted 542,020 and 529,134 stock options during the nine months ended September 30, 2014 and 2013, respectively. The weighted-average grant date fair value of restricted stock granted during the nine months ended September 30, 2014 and 2013 was $25.34 and $23.53, respectively. The Company granted 116,319 and 73,994 shares of restricted stock during the nine months ended September 30, 2014 and 2013, respectively. The grant date fair value of restricted stock is determined based on the closing market price of the Company’s common stock on the grant date. |
Industry_and_Geographic_Inform
Industry and Geographic Information | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Text Block [Abstract] | ' | ||||||
Industry and Geographic Information | ' | ||||||
Industry and Geographic Information | |||||||
The Company operates in one reportable segment. Sales to customers outside the U.S. represented $16.7 million (14%) and $17.0 million (14%) of total revenue for the nine months ended September 30, 2014 and 2013, respectively. As of September 30, 2014 and December 31, 2013, balances due from foreign customers were $2.5 million and $3.2 million, respectively. | |||||||
The Company had sales to individual customers in excess of 10% of total revenues, as follows: | |||||||
Nine months ended September 30, | |||||||
2014 | 2013 | ||||||
Customer: | |||||||
A | 16 | % | 14 | % | |||
B | 16 | % | 15 | % | |||
C | 10 | % | 8 | % | |||
42 | % | 37 | % | ||||
As of September 30, 2014 and December 31, 2013, accounts receivable from customers with balances due in excess of 10% of total accounts receivable totaled $14.3 million and $19.6 million, respectively. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
Legal | |
The Company is involved in various claims and litigation matters from time to time in the ordinary course of business. Management believes that all such current legal actions, in the aggregate, will not have a material adverse effect on the Company. The Company also maintains insurance, including coverage for product liability claims, in amounts which management believes are appropriate given the nature of its business. At September 30, 2014 and December 31, 2013, the Company had $0.3 million accrued as a liability for various legal matters where the Company deemed the liability probable and estimable. | |
Licensing Arrangements | |
The Company has entered into various other licensing and royalty agreements, which largely require payments based on specified product sales as well as the achievement of specified milestones. The Company had royalty and license expenses relating to those agreements of $0.1 million and $0.2 million for the three months ended September 30, 2014 and 2013, respectively. The Company had royalty and license expenses relating to those agreements of $0.6 million and $0.7 million for the nine months ended September 30, 2014 and 2013, respectively. | |
Research and Development Agreements | |
The Company has entered into various research and/or contracted development agreements to develop, manufacture and/or market products using, at times, the intellectual property and technology of its collaborative partners. Under the terms of certain of these agreements, the Company is required to make periodic payments based on progress towards achievement of certain milestones or resource expenditures. At September 30, 2014 and December 31, 2013, total future commitments under the terms of these agreements are estimated at $3.9 million and $2.3 million, respectively. The commitments will fluctuate as the Company agrees to new phases of development under the existing arrangements. | |
Contingent Consideration | |
In conjunction with the acquisition of BioHelix Corporation (“BioHelix”) in May 2013, the Company agreed to contingent consideration ranging from $5.0 million to $13.0 million upon achievement of certain research and development milestones and revenue targets through 2018. As of September 30, 2014, all research and development milestones have been achieved and payments have been disbursed. A payment of $0.9 million was disbursed in the fourth quarter of 2013. Payments of $1.1 million and $1.0 million were disbursed during the first and third quarters of 2014, respectively. As of September 30, 2014, the current portion of the contingent consideration is $0.6 million and the non-current portion of the contingent consideration is $5.8 million. The fair value of the remaining contingent consideration related to the revenue royalty earn-out to be settled in cash is estimated based on the Monte Carlo Simulation Model. | |
In August 2013, the Company completed a business combination accomplished by acquiring the assets of AnDiaTec GmbH & Co. KG (“AnDiaTec”), a privately-held, diagnostics company, based in Germany. The Company agreed to contingent consideration of up to $0.7 million upon achievement of certain revenue targets through 2018. As of September 30, 2014 the fair value of the contingent consideration was $0.3 million based on the Monte Carlo Simulation Model, which is included in non-current contingent consideration on the Consolidated Balance Sheet. In addition, the Company agreed to pay the founder of AnDiaTec contingent payments of up to $4.0 million upon achievement of certain research and development milestones, subject to, continued employment. During the nine months ended September 30, 2014, the Company paid $0.9 million for the achievement of agreed upon research and development milestones. These costs are recorded as compensation expense included in research and development expense in the Consolidated Statements of Operations. |
Lease_Obligation
Lease Obligation | 9 Months Ended |
Sep. 30, 2014 | |
Leases [Abstract] | ' |
Lease Obligation | ' |
Lease Obligation | |
During 1999, the Company completed a sale and leaseback transaction of its San Diego facility. The facility was sold for $15.0 million, of which $3.8 million was capital contributed by the Company. The sale was an all cash transaction, netting the Company approximately $7.0 million. The Company is a 25% limited partner in the partnership that acquired the facility. The transaction was deemed a financing transaction under the guidance in ASC Topic 840-40, Accounting for Sales of Real Estate. The assets sold remain on the books of the Company and will continue to be depreciated over the estimated useful life. In December 2009, the Company amended the terms of its lease agreement which had no significant impact on the Company’s financial statements. The amended terms include a new ten-year lease term through December 2019, with options to extend the lease for up to three additional five-year periods. The Company is amortizing the lease obligation over the new lease term. The amount of the monthly rental payments remains the same under the amendment. The combined carrying value of the land and building subject to this lease, net of accumulated depreciation, was $2.0 million and $2.1 million as of September 30, 2014 and December 31, 2013, respectively. In addition, the Company has the option to purchase the general partner’s interest in the partnership in January 2015 for a fixed price. The Company has determined that the partnership is a variable interest entity (VIE). The Company is not, however, the primary beneficiary of the VIE as it does not absorb the majority of the partnership’s expected losses or receive a majority of the partnership’s residual returns. The Company made lease payments to the partnership of approximately $0.3 million for each of the three months ended September 30, 2014 and 2013 and $0.8 million and $0.9 million for the nine months ended September 30, 2014 and 2013, respectively. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||||||||||||||
The following table presents the Company’s hierarchy for its assets and liabilities measured at fair value on a recurring basis as of the following periods (in thousands): | ||||||||||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Cash equivalents | $ | 3,056 | $ | — | $ | — | $ | 3,056 | $ | 3,056 | $ | — | $ | — | $ | 3,056 | ||||||||||||||||
Total assets measured at fair value | $ | 3,056 | $ | — | $ | — | $ | 3,056 | $ | 3,056 | $ | — | $ | — | $ | 3,056 | ||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Senior Credit Facility | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Contingent consideration | — | — | 6,719 | 6,719 | — | — | 8,808 | 8,808 | ||||||||||||||||||||||||
Total liabilities measured at fair value | $ | — | $ | — | $ | 6,719 | $ | 6,719 | $ | — | $ | — | $ | 8,808 | $ | 8,808 | ||||||||||||||||
There were no transfers of assets or liabilities between Level 1, Level 2 and Level 3 categories of the fair value hierarchy during the three and nine month period ended September 30, 2014 and the year ended December 31, 2013. | ||||||||||||||||||||||||||||||||
The Company used Level 1 inputs to determine the fair value of its cash equivalents, which primarily consist of funds held in a money market account, and as such, the carrying value of cash equivalents approximates fair value. As of September 30, 2014 and December 31, 2013, the carrying value of cash equivalents was $3.1 million. There were no borrowings under the Senior Credit Facility as of September 30, 2014 and December 31, 2013. | ||||||||||||||||||||||||||||||||
The Company reassesses the fair value of contingent consideration to be settled in cash related to acquisitions on a quarterly basis using the Monte Carlo Simulation Model for the royalty earn-out portions of the contingent liability and probability weighted models for the research and development earn-out. These are Level 3 measurements. Significant assumptions used in the measurement include probabilities of achieving the remaining milestones and the discount rates, which depend on the milestone risk profiles. Due to changes in the estimated payments and a shorter discounting period, the fair value of the contingent consideration liabilities changed, resulting in a $42,000 loss recorded in research and development expense in the Consolidated Statements of Operations during the nine months ended September 30, 2014. | ||||||||||||||||||||||||||||||||
Changes in estimated fair value of contingent consideration liabilities from December 31, 2013 through September 30, 2014 are as follows (in thousands): | ||||||||||||||||||||||||||||||||
Contingent consideration liabilities | ||||||||||||||||||||||||||||||||
(Level 3 measurement) | ||||||||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 8,808 | ||||||||||||||||||||||||||||||
Cash payments | (2,112 | ) | ||||||||||||||||||||||||||||||
Losses recorded for fair value adjustments | 42 | |||||||||||||||||||||||||||||||
Unrealized gain on foreign currency translation | (19 | ) | ||||||||||||||||||||||||||||||
Balance at September 30, 2014 | $ | 6,719 | ||||||||||||||||||||||||||||||
Impairment_Loss
Impairment Loss | 9 Months Ended |
Sep. 30, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' |
Impairment Loss | ' |
Impairment Loss | |
The Company originally acquired certain automated direct fluorescent antibody cell analyzer technology as part of its DHI acquisition in 2010. This technology and the related program named "Project Stella" or "Bobcat" continued in development or evaluation (both the technology and associated instrument system) since the acquisition. During the three months ended September 30, 2014, the Company evaluated the potential cash flows related to Project Stella as well as potential sale of the assets or joint development opportunities with third parties. As a result of those activities, the Company noted indicators of impairment related to the Project Stella assets. These assets included $1.5 million of software development costs, $1.6 million of in-process research and development, and $0.3 million in manufacturing line costs. The Company completed an evaluation of the recoverability of the assets during the third quarter of 2014, which included cash flow analyses as well as pursuing a potential sale of the assets to third parties. Based on the analyses, the Company determined the carrying value was not recoverable and an impairment loss was measured by comparing the carrying value to the estimated fair value of the assets. The fair value of the Project Stella assets was estimated utilizing the discounted cash flow analysis. As a result, the Company recognized an impairment loss of $3.4 million, included in the Company's Consolidated Statements of Operations. Additionally, $0.2 million was included in the impairment loss related to the expense to terminate a manufacturing contract with a third party |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The accompanying unaudited consolidated financial statements of Quidel Corporation and its subsidiaries (the “Company”) have been prepared in accordance with generally accepted accounting principles in the U.S. for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the U.S. for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation (consisting of normal recurring accruals) have been included. | |
The information at September 30, 2014, and for the three and nine months ended September 30, 2014 and 2013, is unaudited. For further information, refer to the Company’s consolidated financial statements and footnotes thereto for the year ended December 31, 2013 included in the Company’s 2013 Annual Report on Form 10-K. Operating results for any quarter are historically seasonal in nature and are not necessarily indicative of the results expected for the full year. | |
The Company reclassified $0.2 million and $0.5 million from general and administrative expense to interest expense for the three and nine months ended September 30, 2013, respectively, to conform to current year presentation. These reclassifications had no impact on net earnings or on the previously reported financial position of the Company. | |
For 2014 and 2013, the Company’s fiscal year will end or has ended on December 28, 2014 and December 29, 2013, respectively. For 2014 and 2013, the Company’s third quarter ended on September 28, 2014 and September 29, 2013, respectively. For ease of reference, the calendar quarter end dates are used herein. The three and nine month periods ended September 30, 2014 and 2013 each included 13 and 39 weeks, respectively. | |
Comprehensive (Loss) Income | ' |
Comprehensive (Loss) Income | |
Comprehensive (loss) income includes foreign currency translation adjustments excluded from the Company’s Consolidated Statements of Operations. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, management evaluates its estimates, including those related to revenue recognition, customer programs and incentives, bad debts, inventories, intangible assets, software development costs, stock-based compensation, restructuring, contingencies and litigation, contingent consideration, and income taxes. Management bases its estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. | |
Revenue Recognition | ' |
Revenue Recognition | |
The Company records revenues primarily from product sales. These revenues are recorded net of rebates and other discounts which are estimated at the time of sale, and are largely driven by various customer program offerings, including special pricing agreements, promotions and other volume-based incentives. Revenue from product sales are recorded upon passage of title and risk of loss to the customer. Change in title to the product and recognition of revenue occurs upon delivery to the customer when sales terms are free on board (“FOB”) destination and at the time of shipment when the sales terms are FOB shipping point and there is no right of return. | |
A portion of product sales include revenues for diagnostic kits, which are utilized on leased instrument systems under the Company’s “reagent rental” program. The reagent rental program provides customers the right to use the instruments at no separate cost to the customer in consideration for a multi-year agreement to purchase annual minimum amounts of consumables (“reagents” or “diagnostic kits”). When an instrument is placed with a customer under a reagent rental agreement, the Company retains title to the equipment and it remains capitalized on the Company’s Consolidated Balance Sheet as property and equipment. The instrument is depreciated on a straight-line basis over the shorter of the lease term or the life of the instrument. Depreciation expense is recorded in cost of sales included in the Consolidated Statements of Operations. The reagent rental agreements represent one unit of accounting as the instrument and consumables (reagents) are interdependent in producing a diagnostic result and neither has a stand-alone value with respect to these agreements. No revenue is recognized at the time of instrument placement. All revenue is recognized when the title and risk of loss for the diagnostic kits have passed to the customer. | |
Royalty income from the grant of license rights is recognized during the period in which the revenue is earned and the amount is determinable from the licensee. The Company also earns income from the licensing of technology. | |
The Company earns income from grants for research and commercialization activities. On November 6, 2012, the Company was awarded a milestone-based grant totaling up to $8.3 million from the Bill and Melinda Gates Foundation to | |
develop, manufacture and validate a quantitative, low-cost, nucleic acid assay for HIV drug treatment monitoring on the integrated Savanna™ MDx platform for use in limited resource settings. Upon execution of the grant agreement, the Company received $2.6 million to fund subsequent research and development activities and received milestone payments totaling $2.5 million in 2013. On September 10, 2014, the Company entered into an amended grant agreement with the Bill and Melinda Gates Foundation for additional funding of up to $12.6 million in order to accelerate the development of the Savanna MDx platform in the developing world. Upon execution of the amended grant agreement, the Company received $10.6 million in cash and expects to receive milestone payments of up to $5.2 million in 2015. The Company recognizes grant revenue on the lesser of the amount recognized on a proportional performance basis or the amount of cash payments that are non-refundable as of the end of each reporting period. The Company recognized $3.4 million and $0.6 million for the three months ended September 30, 2014 and 2013, respectively, as grant revenue associated with this grant. The Company recognized $4.7 million and $1.9 million for the nine months ended September 30, 2014 and 2013, respectively, as grant revenue associated with this grant. The Company classified $6.0 million and $1.0 million of funds received from the Bill and Melinda Gates Foundation as restricted cash as of September 30, 2014 and December 31, 2013, respectively. In addition, the Company has classified $7.9 million and $2.0 million as deferred grant revenue as of September 30, 2014 and December 31, 2013, respectively. | |
Fair Value Measurements | ' |
Fair Value Measurements | |
The Company uses the fair value hierarchy established in ASC Topic 820, Fair Value Measurements and Disclosures, that requires the valuation of assets and liabilities subject to fair value measurements using a three tiered approach and fair value measurement be classified and disclosed by the Company in one of the following three categories: | |
Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; | |
Level 2: Quoted prices for similar assets and liabilities in active markets, quoted prices for identical assets and liabilities in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; and | |
Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e. supported by little or no market activity). | |
The carrying amounts of the Company’s financial instruments, including cash, receivables, accounts payable, and accrued liabilities approximate their fair values due to their short-term nature. Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of trade accounts receivable. The Company establishes reserves for estimated uncollectible accounts and believes its reserves are adequate. | |
Collaborative Arrangement | ' |
Collaborative Arrangement | |
In July 2012, the Company entered into a collaborative arrangement with Life Technologies Corporation for the development of molecular assays. ASC Topic 808, Collaborative Arrangements (“ASC 808”), defines a collaborative arrangement as an arrangement where the parties are active participants and have exposure to significant risks. The Company is accounting for the joint development and commercialization activities with the third-party as a joint risk sharing collaboration in accordance with ASC 808. Payments received from Life Technologies Corporation totaled $3.0 million in 2012, $1.4 million in 2013, and a $0.4 million payment in July 2014. The Company does not expect additional payments during the remainder of 2014, as the development efforts are complete. The reimbursement represents approximately 50% of project development costs based upon mutually agreed upon project plans for each molecular assay. The reimbursements are recorded as a reduction to research and development expense in the accompanying consolidated financial statements, to the extent that they are less than related expenditures for research and development activities subsequent to the date of the contract. The Company recognized $0.3 million of such reimbursements as a reduction to research and development expense during the three months ended September 30, 2013. The Company recognized no such reimbursements as a reduction to research and development expense for the three months ended September 30, 2014. The Company recognized $0.4 million and $1.4 million of such reimbursements as a reduction to research and development expense for the nine months ended September 30, 2014 and 2013, respectively. | |
In March 2013, the Company entered into a six year instrument supply agreement (the “March 2013 Agreement”) with Life Technologies Corporation. Pursuant to the March 2013 Agreement, the Company paid $0.8 million for distribution rights to sell Life Technologies Corporation’s QuantStudio™ DX diagnostic laboratory instrument for use in the infectious disease field, along with the assays developed under the collaborative agreement. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In May 2014, the FASB issued guidance codified in ASC Topic 606, Revenue Recognition - Revenue from Contracts with Customers, which amends the guidance in former ASC Topic 605, Revenue Recognition. This guidance is intended to improve and converge with international standards the financial reporting requirements for revenue from contracts with customers. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under current authoritative guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The guidance is effective for annual reporting periods beginning after December 15, 2016, with early adoption prohibited. The Company is currently evaluating the impact of this guidance and expects to adopt the standard in the first quarter of 2017. | |
In August 2014, the FASB issued guidance codified in ASU 2014-15 (Subtopic 205-40), Presentation of Financial Statements - Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The guidance requires management to evaluate whether there are conditions and events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the financial statements are issued (or available to be issued when applicable). Management will be required to make this evaluation for both annual and interim reporting periods and will have to make certain disclosures if it concludes that substantial doubt exists or when its plans alleviate substantial doubt about the entity’s ability to continue as a going concern. Substantial doubt exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due within one year after the date that the financial statements are issued (or available to be issued). The term probable is used consistently with its use in ASC Topic 450, Contingencies. The guidance is effective for annual periods ending after December 15, 2016 and for interim reporting periods starting in the first quarter 2017, with early adoption permitted. The Company is currently evaluating the impact of this guidance and expects to adopt the standard for the annual reporting period ended December 31, 2016. |
Computation_of_Loss_Earnings_P1
Computation of (Loss) Earnings Per Share (Tables) | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Earnings Per Share [Abstract] | ' | |||
Basic and Diluted EPS | ' | |||
The following table sets forth the computation of basic and diluted EPS for the nine months ended September 30, 2013 (in thousands, except per share amounts): | ||||
2013 | ||||
Basic net income per share: | ||||
Net income | $ | 6,251 | ||
Less: income allocated to participating securities | (16 | ) | ||
Net income allocated to common stockholders | $ | 6,235 | ||
Weighted average common shares outstanding — basic | 33,774 | |||
Net income per share — basic | $ | 0.18 | ||
Diluted net income per share: | ||||
Net income | $ | 6,251 | ||
Less: income allocated to participating securities | (16 | ) | ||
Net income allocated to common stockholders | $ | 6,235 | ||
Weighted average common shares outstanding — basic | 33,774 | |||
Dilutive securities | 1,060 | |||
Weighted average common shares outstanding — diluted | 34,834 | |||
Net income per share — diluted | $ | 0.18 | ||
Inventories_Tables
Inventories (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Summary of Inventories | ' | |||||||
Inventories consisted of the following, net of reserves of $1.4 million and $0.6 million at September 30, 2014 and December 31, 2013, respectively (in thousands): | ||||||||
30-Sep-14 | 31-Dec-13 | |||||||
Raw materials | $ | 10,068 | $ | 11,938 | ||||
Work-in-process (materials, labor and overhead) | 8,780 | 9,831 | ||||||
Finished goods (materials, labor and overhead) | 4,666 | 5,870 | ||||||
Total inventories | $ | 23,514 | $ | 27,639 | ||||
Other_Current_Liabilities_Tabl
Other Current Liabilities (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Text Block [Abstract] | ' | |||||||
Other Current Liabilities | ' | |||||||
Other current liabilities consist of the following (in thousands): | ||||||||
September 30, 2014 | 31-Dec-13 | |||||||
Customer incentives | $ | 3,762 | $ | 3,068 | ||||
Accrued research and development costs | 1,981 | 240 | ||||||
Other | 2,701 | 2,303 | ||||||
Total other current liabilities | $ | 8,444 | $ | 5,611 | ||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Compensation Expense Related to Stock-Based Compensation Plans | ' | ||||||||||||||||
The compensation expense related to the Company’s stock-based compensation plans included in the accompanying Consolidated Statements of Operations was as follows (in millions): | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Cost of sales | $ | 0.1 | $ | 0.1 | $ | 0.4 | $ | 0.5 | |||||||||
Research and development | 0.2 | 0.4 | 0.8 | 1.1 | |||||||||||||
Sales and marketing | 0.2 | 0.2 | 0.7 | 0.5 | |||||||||||||
General and administrative | 0.8 | 0.7 | 2.9 | 3.3 | |||||||||||||
Total stock-based compensation expense | $ | 1.3 | $ | 1.4 | $ | 4.8 | $ | 5.4 | |||||||||
Estimated Fair Value of Each Stock Option Award | ' | ||||||||||||||||
The estimated fair value of each stock option award was determined on the date of grant using the Black-Scholes option valuation model with the following weighted-average assumptions for the option grants. | |||||||||||||||||
Nine months ended September 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Risk-free interest rate | 1.59 | % | 0.86 | % | |||||||||||||
Expected option life (in years) | 5.77 | 5.53 | |||||||||||||||
Volatility rate | 42 | % | 44 | % | |||||||||||||
Dividend rate | — | % | — | % |
Industry_and_Geographic_Inform1
Industry and Geographic Information (Tables) | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Text Block [Abstract] | ' | ||||||
Sales to Individual Customers in Excess of 10% of Total Revenues | ' | ||||||
The Company had sales to individual customers in excess of 10% of total revenues, as follows: | |||||||
Nine months ended September 30, | |||||||
2014 | 2013 | ||||||
Customer: | |||||||
A | 16 | % | 14 | % | |||
B | 16 | % | 15 | % | |||
C | 10 | % | 8 | % | |||
42 | % | 37 | % |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis | ' | |||||||||||||||||||||||||||||||
The following table presents the Company’s hierarchy for its assets and liabilities measured at fair value on a recurring basis as of the following periods (in thousands): | ||||||||||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Cash equivalents | $ | 3,056 | $ | — | $ | — | $ | 3,056 | $ | 3,056 | $ | — | $ | — | $ | 3,056 | ||||||||||||||||
Total assets measured at fair value | $ | 3,056 | $ | — | $ | — | $ | 3,056 | $ | 3,056 | $ | — | $ | — | $ | 3,056 | ||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Senior Credit Facility | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Contingent consideration | — | — | 6,719 | 6,719 | — | — | 8,808 | 8,808 | ||||||||||||||||||||||||
Total liabilities measured at fair value | $ | — | $ | — | $ | 6,719 | $ | 6,719 | $ | — | $ | — | $ | 8,808 | $ | 8,808 | ||||||||||||||||
Changes in Estimated Fair Value of Contingent Consideration Liabilities | ' | |||||||||||||||||||||||||||||||
Changes in estimated fair value of contingent consideration liabilities from December 31, 2013 through September 30, 2014 are as follows (in thousands): | ||||||||||||||||||||||||||||||||
Contingent consideration liabilities | ||||||||||||||||||||||||||||||||
(Level 3 measurement) | ||||||||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 8,808 | ||||||||||||||||||||||||||||||
Cash payments | (2,112 | ) | ||||||||||||||||||||||||||||||
Losses recorded for fair value adjustments | 42 | |||||||||||||||||||||||||||||||
Unrealized gain on foreign currency translation | (19 | ) | ||||||||||||||||||||||||||||||
Balance at September 30, 2014 | $ | 6,719 | ||||||||||||||||||||||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | |||
Nov. 06, 2012 | Jul. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | |
Distribution rights [Member] | |||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reimbursement related to research and development expense | ' | $400,000 | ' | ' | ' | ' | $1,400,000 | $3,000,000 | ' |
Reimbursement percentage upon project development costs | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' |
Reimbursements recognized as a reduction to research and development expense | ' | ' | 0 | 300,000 | 400,000 | 1,400,000 | ' | ' | ' |
Acquisition of distribution rights | ' | ' | ' | ' | ' | ' | ' | ' | 800,000 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
General and administrative expense reclassified as interest expense | ' | ' | ' | 200,000 | ' | 500,000 | ' | ' | ' |
Revenue Recognition [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Company milestone-based grant | 8,300,000 | ' | 12,600,000 | ' | ' | ' | ' | ' | ' |
Fund received for research and development activities | 2,600,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Milestone payments received | ' | ' | 10,600,000 | ' | ' | ' | 2,500,000 | ' | ' |
Company's expectation to receive milestone payment in 2015 | ' | ' | 5,200,000 | ' | 5,200,000 | ' | ' | ' | ' |
Company grant revenue | ' | ' | 3,400,000 | 600,000 | 4,700,000 | 1,900,000 | ' | ' | ' |
Restricted cash as a component of prepaid expenses | ' | ' | 6,000,000 | ' | 6,000,000 | ' | 1,000,000 | ' | ' |
Deferred grant revenue | ' | ' | $7,913,000 | ' | $7,913,000 | ' | $2,029,000 | ' | ' |
Computation_of_Loss_Earnings_P2
Computation of (Loss) Earnings Per Share - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Equity option and restricted stock [Member] | ' | ' | ' | ' |
Dilutive Securities Included And Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Shares excluded from calculation of diluted (loss) earnings per share ("EPS") | 1 | 1.2 | 1.1 | ' |
Stock options [Member] | ' | ' | ' | ' |
Dilutive Securities Included And Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Shares excluded from calculation of diluted (loss) earnings per share ("EPS") | 1.2 | 0.6 | 1.1 | 0.5 |
Computation_of_Loss_Earnings_P3
Computation of (Loss) Earnings Per Share - Basic and Diluted EPS (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Basic net income per share: | ' | ' | ' | ' |
Net (loss) income | ($5,767) | ($4,361) | ($14,187) | $6,251 |
Less: income allocated to participating securities | ' | ' | ' | -16 |
Net income allocated to common stockholders | ' | ' | ' | 6,235 |
Weighted average common shares outstanding — basic | 34,480 | 33,975 | 34,340 | 33,774 |
Net income per share — basic | ($0.17) | ($0.13) | ($0.41) | $0.18 |
Diluted net income per share: | ' | ' | ' | ' |
Net (loss) income | -5,767 | -4,361 | -14,187 | 6,251 |
Less: income allocated to participating securities | ' | ' | ' | -16 |
Net income allocated to common stockholders | ' | ' | ' | $6,235 |
Weighted average common shares outstanding — basic | 34,480 | 33,975 | 34,340 | 33,774 |
Dilutive securities | ' | ' | ' | 1,060 |
Weighted average common shares outstanding — diluted | 34,480 | 33,975 | 34,340 | 34,834 |
Net income per share — diluted | ($0.17) | ($0.13) | ($0.41) | $0.18 |
Inventories_Additional_Informa
Inventories - Additional Information (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Net of reserves, inventories | $1.40 | $0.60 |
Inventories_Summary_of_Invento
Inventories - Summary of Inventories (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw materials | $10,068 | $11,938 |
Work-in-process (materials, labor and overhead) | 8,780 | 9,831 |
Finished goods (materials, labor and overhead) | 4,666 | 5,870 |
Total inventories | $23,514 | $27,639 |
Other_Current_Liabilities_Othe
Other Current Liabilities - Other Current Liabilities (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Liabilities Disclosure [Abstract] | ' | ' |
Customer incentives | $3,762 | $3,068 |
Accrued research and development costs | 1,981 | 240 |
Other | 2,701 | 2,303 |
Total other current liabilities | $8,444 | $5,611 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
(Benefit) provision for income taxes | $4,578,000 | $1,795,000 | $8,891,000 | $2,728,000 |
Effective tax rate | 44.00% | 29.00% | 39.00% | -77.00% |
Income tax reserve release | 3,500,000 | ' | ' | ' |
Benefit related to the federal research and development credit | ' | 500,000 | ' | ' |
Federal research and development credit | $0 | ' | $0 | ' |
Line_of_Credit_Additional_Info
Line of Credit - Additional Information (Detail) (USD $) | 9 Months Ended | 3 Months Ended | 3 Months Ended | |||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Aug. 10, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
Other non-current assets [Member] | Other non-current assets [Member] | Senior Credit Facility [Member] | Senior Credit Facility [Member] | Senior Credit Facility [Member] | Senior Credit Facility [Member] | Senior Credit Facility [Member] | Senior Credit Facility [Member] | Senior Credit Facility [Member] | Senior Credit Facility [Member] | Senior Credit Facility [Member] | ||
Scenario, previously reported [Member] | Federal funds rate [Member] | LIBOR [Member] | LIBOR [Member] | LIBOR [Member] | Base rate loans [Member] | Base rate loans [Member] | ||||||
Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | |||||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior Credit Facility | ' | ' | ' | ' | $140 | ' | ' | ' | ' | ' | ' | ' |
Senior Credit Facility, maturity date | ' | ' | ' | 10-Aug-17 | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred financing costs | ' | 0.9 | 1.2 | 1 | ' | 0.6 | ' | ' | ' | ' | ' | ' |
Base rate | ' | ' | ' | ' | ' | ' | 0.50% | 1.00% | ' | ' | ' | ' |
Senior Credit Facility, applicable margin | ' | ' | ' | ' | ' | ' | ' | ' | 2.50% | 1.25% | 1.50% | 0.25% |
Senior Credit Facility, adjusted EBITDA ratio | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' |
Senior Credit Facility, interest coverage ratio | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' |
Amount available under the Senior Credit Facility | $39.60 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility covenant compliance | 'the Company was in compliance with all financial covenants. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Common stock issued in conjunction with the vesting and release of restricted stock units | ' | ' | 136,372 | ' |
Common stock issued due to exercise of stock options | ' | ' | 222,174 | ' |
Common stock issued in connection with employee stock purchase plan | ' | ' | 39,651 | ' |
Employee stock purchase plan, net proceeds | ' | ' | $4,500,000 | ' |
Repurchase of common stock, shares | ' | ' | 68,368 | ' |
Repurchase of common stock | 2,000,000 | ' | 1,956,000 | 991,000 |
Amount available under the share repurchase program | 50,000,000 | ' | 50,000,000 | ' |
Shares repurchase under the share repurchase program | 0 | ' | 0 | ' |
Share-based compensation expense recognized | 1,300,000 | 1,400,000 | 4,800,000 | 5,400,000 |
Stock options [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Share-based compensation expense recognized | 900,000 | 800,000 | 3,300,000 | 3,100,000 |
Total unrecognized compensation expense related to non-vested stock options | 6,700,000 | ' | 6,700,000 | ' |
Expected weighted-average period of recognition for unrecognized compensation expense | '2 years 4 months 0 days | ' | ' | ' |
Weighted-average grant date fair value of stock options granted | ' | ' | $10.95 | $9.19 |
Stock options granted | ' | ' | 542,020 | 529,134 |
Restricted stock [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Share-based compensation expense recognized | 400,000 | 600,000 | 1,500,000 | 2,300,000 |
Expected weighted-average period of recognition for unrecognized compensation expense | '2 years 8 months 18 days | ' | ' | ' |
Total unrecognized compensation expense related to non-vested restricted stock | $1,700,000 | ' | $1,700,000 | ' |
Weighted-average grant date fair value of restricted stock granted | ' | ' | $25.34 | $23.53 |
Restricted stock granted | ' | ' | 116,319 | 73,994 |
Stockholders_Equity_Compensati
Stockholders' Equity - Compensation Expense Related to Stock-Based Compensation Plans (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation expense | $1.30 | $1.40 | $4.80 | $5.40 |
Cost of sales [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation expense | 0.1 | 0.1 | 0.4 | 0.5 |
Research and development [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation expense | 0.2 | 0.4 | 0.8 | 1.1 |
Sales and marketing [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation expense | 0.2 | 0.2 | 0.7 | 0.5 |
General and administrative [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation expense | $0.80 | $0.70 | $2.90 | $3.30 |
Stockholders_Equity_Estimated_
Stockholders' Equity - Estimated Fair Value of Each Stock Option Award (Detail) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Equity [Abstract] | ' | ' |
Risk-free interest rate | 1.59% | 0.86% |
Expected option life (in years) | '5 years 9 months 9 days | '5 years 6 months 11 days |
Volatility rate | 42.00% | 44.00% |
Dividend rate | 0.00% | 0.00% |
Industry_and_Geographic_Inform2
Industry and Geographic Information - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 |
Segment | Sales [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Credit Concentration Risk [Member] | Credit Concentration Risk [Member] | Credit Concentration Risk [Member] | Credit Concentration Risk [Member] | |
Non-U.S. Customers [Member] | Non-U.S. Customers [Member] | Non-U.S. Customers [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Accounts receivable [Member] | Accounts receivable [Member] | |||||
Non-U.S. Customers [Member] | Non-U.S. Customers [Member] | Minimum [Member] | Minimum [Member] | ||||||||||
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of reportable segments | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales to customers outside the U.S. | ' | ' | $16.70 | $17 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of risk concentration by major customer | ' | 10.00% | ' | ' | ' | 42.00% | 37.00% | 14.00% | 14.00% | ' | ' | 10.00% | 10.00% |
Accounts receivable | ' | ' | $2.50 | ' | $3.20 | ' | ' | ' | ' | $14.30 | $19.60 | ' | ' |
Industry_and_Geographic_Inform3
Industry and Geographic Information - Sales to Individual Customers in Excess of 10% of Total Revenues (Detail) (Sales [Member]) | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | ||
Customer A [Member] | Customer A [Member] | Customer B [Member] | Customer B [Member] | Customer C [Member] | Customer C [Member] | ||||
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales percentage | 10.00% | 42.00% | 37.00% | 16.00% | 14.00% | 16.00% | 15.00% | 10.00% | 8.00% |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | ||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Aug. 31, 2013 | Sep. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | 31-May-13 | 31-May-13 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | |
Research and development milestones [Member] | Maximum [Member] | BioHelix [Member] | BioHelix [Member] | BioHelix [Member] | BioHelix [Member] | BioHelix [Member] | Claims and litigation [Member] | Claims and litigation [Member] | Research and Development Agreements [Member] | Research and Development Agreements [Member] | ||||||
Minimum [Member] | Maximum [Member] | |||||||||||||||
Sale Leaseback Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued in other current liabilities | $8,444,000 | ' | $8,444,000 | ' | $5,611,000 | ' | ' | ' | ' | ' | ' | ' | $300,000 | $300,000 | ' | ' |
Company had royalty and license expenses relating to those agreements | 100,000 | 200,000 | 600,000 | 700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current commitments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,900,000 | 2,300,000 |
Contingent consideration | 300,000 | ' | 300,000 | ' | ' | 4,000,000 | 700,000 | ' | ' | ' | 5,000,000 | 13,000,000 | ' | ' | ' | ' |
Payment of contingent consideration | ' | ' | 2,112,000 | ' | ' | ' | ' | 1,000,000 | 1,100,000 | 900,000 | ' | ' | ' | ' | ' | ' |
Current portion of contingent consideration | 619,000 | ' | 619,000 | ' | 1,493,000 | ' | ' | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Contingent consideration non-current portion | 6,100,000 | ' | 6,100,000 | ' | 7,315,000 | ' | ' | 5,800,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Milestone payments paid | ' | ' | ' | ' | ' | $900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease_Obligation_Additional_In
Lease Obligation - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 1999 |
Lease | San Diego facility [Member] | |||||
Sale Leaseback Transaction [Line Items] | ' | ' | ' | ' | ' | ' |
Facility sold | ' | ' | ' | ' | ' | $15 |
Capital contributed | ' | ' | ' | ' | ' | 3.8 |
Cash transaction, netting | ' | ' | ' | ' | ' | 7 |
Partnership that acquired the facility | ' | ' | 25.00% | ' | ' | ' |
Amended terms | '10 years | ' | ' | ' | ' | ' |
Amended term lease extended ending date | 31-Dec-19 | ' | ' | ' | ' | ' |
Number of extension | 3 | ' | ' | ' | ' | ' |
Extend the lease options | '5 years | ' | ' | ' | ' | ' |
Land and building, net of accumulated depreciation | 2 | ' | 2 | ' | 2.1 | ' |
Lease payments | $0.30 | $0.30 | $0.80 | $0.90 | ' | ' |
Fair_Value_Measurements_Assets
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Assets: | ' | ' |
Total assets measured at fair value | $3,056,000 | $3,056,000 |
Liabilities: | ' | ' |
Total liabilities measured at fair value | 6,719,000 | 8,808,000 |
Senior Credit Facility [Member] | ' | ' |
Liabilities: | ' | ' |
Total liabilities measured at fair value | 0 | 0 |
Money Market Funds [Member] | ' | ' |
Assets: | ' | ' |
Total assets measured at fair value | 3,056,000 | 3,056,000 |
Contingent consideration [Member] | ' | ' |
Liabilities: | ' | ' |
Total liabilities measured at fair value | 6,719,000 | 8,808,000 |
Level 1 [Member] | ' | ' |
Assets: | ' | ' |
Total assets measured at fair value | 3,056,000 | 3,056,000 |
Liabilities: | ' | ' |
Total liabilities measured at fair value | 0 | 0 |
Level 1 [Member] | Senior Credit Facility [Member] | ' | ' |
Liabilities: | ' | ' |
Total liabilities measured at fair value | 0 | 0 |
Level 1 [Member] | Money Market Funds [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Cash Equivalents, at Carrying Value | 3,100,000 | 3,100,000 |
Assets: | ' | ' |
Total assets measured at fair value | 3,056,000 | 3,056,000 |
Level 1 [Member] | Contingent consideration [Member] | ' | ' |
Liabilities: | ' | ' |
Total liabilities measured at fair value | 0 | 0 |
Level 2 [Member] | ' | ' |
Assets: | ' | ' |
Total assets measured at fair value | 0 | 0 |
Liabilities: | ' | ' |
Total liabilities measured at fair value | 0 | 0 |
Level 2 [Member] | Senior Credit Facility [Member] | ' | ' |
Liabilities: | ' | ' |
Total liabilities measured at fair value | 0 | 0 |
Level 2 [Member] | Money Market Funds [Member] | ' | ' |
Assets: | ' | ' |
Total assets measured at fair value | 0 | 0 |
Level 2 [Member] | Contingent consideration [Member] | ' | ' |
Liabilities: | ' | ' |
Total liabilities measured at fair value | 0 | 0 |
Level 3 [Member] | ' | ' |
Assets: | ' | ' |
Total assets measured at fair value | 0 | 0 |
Liabilities: | ' | ' |
Total liabilities measured at fair value | 6,719,000 | 8,808,000 |
Level 3 [Member] | Senior Credit Facility [Member] | ' | ' |
Liabilities: | ' | ' |
Total liabilities measured at fair value | 0 | 0 |
Level 3 [Member] | Money Market Funds [Member] | ' | ' |
Assets: | ' | ' |
Total assets measured at fair value | 0 | 0 |
Level 3 [Member] | Contingent consideration [Member] | ' | ' |
Liabilities: | ' | ' |
Total liabilities measured at fair value | $6,719,000 | $8,808,000 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Transfer of assets and liabilities between levels | $0 | $0 | $0 | $0 |
Amount outstanding under the Senior Credit Facility | 0 | 0 | ' | 0 |
Loss recorded in research and development due to change in fair value of contingent consideration liabilities | ' | 42,000 | ' | ' |
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member] | ' | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Cash Equivalents, at Carrying Value | $3,100,000 | $3,100,000 | ' | $3,100,000 |
Fair_Value_Measurements_Change
Fair Value Measurements - Changes in Estimated Fair Value of Contingent Consideration Liabilities (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Balance at December 31, 2013 | $6,719 | $8,808 |
Level 3 [Member] | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Balance at December 31, 2013 | 6,719 | 8,808 |
Cash payments | -2,112 | ' |
Losses recorded for fair value adjustments | 42 | ' |
Unrealized gain on foreign currency translation | -19 | ' |
Balance at September 30, 2014 | 6,719 | ' |
Commitments [Member] | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Balance at December 31, 2013 | 6,719 | 8,808 |
Commitments [Member] | Level 3 [Member] | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Balance at December 31, 2013 | $6,719 | $8,808 |
Impairment_Loss_Details
Impairment Loss (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Impairment loss | $3,558,000 | $0 | $3,558,000 | $0 |
Loss on contract termination | ' | ' | 200,000 | ' |
In Process Research and Development [Member] | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Impairment loss | ' | ' | 1,600,000 | ' |
Other Intangible Assets [Member] | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Impairment loss | ' | ' | 300,000 | ' |
Project Stella [Member] | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Impairment loss | ' | ' | 3,400,000 | ' |
Software and Software Development Costs [Member] | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Impairment loss | ' | ' | $1,500,000 | ' |