STAAR Surgical (STAA) 10-Q 8 Nov 17 2017 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 29, 2017	Oct. 30, 2017
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 29, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Entity Registrant Name	STAAR SURGICAL CO
Entity Central Index Key	718,937
Current Fiscal Year End Date	--12-29
Entity Filer Category	Accelerated Filer
Trading Symbol	STAA
Entity Common Stock, Shares Outstanding		41,164,231

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS $ in Thousands	Sep. 29, 2017USD ($)	Dec. 30, 2016USD ($)
Current assets:
Cash and cash equivalents	$ 16,133	$ 13,999
Accounts receivable trade, net of allowance for doubtful accounts of $2,255 and $2,056, respectively	16,237	16,344
Inventories, net	13,274	14,825
Insurance receivable	7,000	0
Prepayments, deposits and other current assets	4,936	4,349
Total current assets	57,580	49,517
Property, plant and equipment, net	10,999	11,790
Intangible assets, net	326	473
Goodwill	1,786	1,786
Deferred income taxes	1,043	1,105
Other assets	969	772
Total assets	72,703	65,443
Current liabilities:
Line of credit	4,442	4,283
Accounts payable	5,734	8,311
Obligations under capital leases	1,269	1,198
Litigation settlement obligation	7,000	0
Other current liabilities	7,253	7,275
Total current liabilities	25,698	21,067
Obligations under capital leases	834	1,339
Deferred income taxes	984	881
Asset retirement obligations	203	195
Deferred rent	184	59
Pension liability	4,138	3,997
Total liabilities	32,041	27,538
Commitments and contingencies (Note 12)
Stockholders' equity:
Common stock, $0.01 par value; 60,000 shares authorized; 41,156 and 40,732 shares issued and outstanding at September 29, 2017 and December 30, 2016, respectively	412	407
Additional paid-in capital	202,148	197,657
Accumulated other comprehensive loss	(788)	(1,050)
Accumulated deficit	(161,110)	(159,109)
Total stockholders’ equity	40,662	37,905
Total liabilities and stockholders’ equity	$ 72,703	$ 65,443

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Sep. 29, 2017	Dec. 30, 2016
Allowance for Doubtful Accounts Receivable, Current	$ 2,255	$ 2,056
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	60,000	60,000
Common stock, shares issued	41,156	40,732
Common stock, shares outstanding	41,156	40,732

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016
Net sales	$ 23,473	$ 20,052	$ 65,759	$ 60,295
Cost of sales	6,624	5,180	18,859	17,804
Gross profit	16,849	14,872	46,900	42,491
General and administrative	4,946	4,985	15,065	18,378
Marketing and selling	6,431	7,149	20,282	22,006
Research and development	4,429	4,453	13,924	16,018
Total operating expenses	15,806	16,587	49,271	56,402
Operating income (loss)	1,043	(1,715)	(2,371)	(13,911)
Other income (expense):
Interest expense, net	(27)	(29)	(88)	(85)
Gain (loss) on foreign currency transactions	444	(29)	738	13
Royalty income	141	134	400	507
Other income (expense), net	(19)	(68)	17	(150)
Other income, net	539	8	1,067	285
Income (loss) before provision (benefit) for income taxes	1,582	(1,707)	(1,304)	(13,626)
Provision (benefit) for income taxes	409	71	697	(1,664)
Net income (loss)	$ 1,173	$ (1,778)	$ (2,001)	$ (11,962)
Net income (loss) per share - basic (in dollars per share)	$ 0.03	$ (0.04)	$ (0.05)	$ (0.30)
Net income (loss) per share - diluted (in dollars per share)	$ 0.03	$ (0.04)	$ (0.05)	$ (0.30)
Weighted average shares outstanding - basic (in shares)	41,110	40,486	40,939	40,227
Weighted average shares outstanding - diluted (in shares)	42,104	40,486	40,939	40,227

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016
Net income (loss)	$ 1,173	$ (1,778)	$ (2,001)	$ (11,962)
Defined benefit pension plans:
Net change in plan assets	(15)	(11)	(43)	(34)
Reclassification into earnings	20	27	60	80
Foreign currency translation gain (loss)	(51)	232	360	2,000
Tax effect	13	(67)	(110)	(611)
Other comprehensive income (loss), net of tax	(33)	181	267	1,435
Comprehensive income (loss)	$ 1,140	$ (1,597)	$ (1,734)	$ (10,527)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net loss	$ (2,001)	$ (11,962)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation of property, plant and equipment	2,344	1,933
Amortization of long-lived intangibles	166	171
Deferred income taxes	164	(1,806)
Change in net pension liability	95	390
Loss on disposal of property and equipment	22	65
Stock-based compensation expense	2,185	8,143
Provision for sales returns and bad debts	186	99
Inventory provision	1,267	1,379
Changes in working capital:
Accounts receivable trade	41	1,707
Inventories	725	222
Prepayments, deposits and other current assets	(764)	(1,118)
Accounts payable	(2,751)	594
Other current liabilities	62	1,104
Net cash provided by operating activities	1,741	921
Cash flows from investing activities:
Acquisition of property and equipment	(969)	(2,709)
Net cash used in investing activities	(969)	(2,709)
Cash flows from financing activities:
Repayment of capital lease obligations	(984)	(302)
Proceeds from sale leaseback transactions	0	1,154
Repurchase of employee common stock for taxes withheld	(234)	(611)
Proceeds from vested restricted stock and exercise of stock options	2,276	1,652
Net cash provided by financing activities	1,058	1,893
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	305	777
Increase in cash, cash equivalents, and restricted cash	2,135	882
Cash, cash equivalents, and restricted cash, at beginning of the period	14,118	13,521
Cash, cash equivalents, and restricted cash, at end of the period	16,253	14,403
Supplemental Disclosure of Non-Cash Operating Activities
Insurance Receivable	7,000	0
Settlement Liability	$ 7,000	$ 0

Basis of Presentation and Signi

Basis of Presentation and Significant Accounting Policies	9 Months Ended
	Sep. 29, 2017
Accounting Policies [Abstract]
Basis of Presentation and Significant Accounting Policies [Text Block]	The condensed consolidated financial statements for the three and nine months ended September 29, 2017 and September 30, 2016, in the opinion of management, include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the Company’s financial condition and results of operations. The results of operations for the three and nine months ended September 29, 2017 and September 30, 2016, are not necessarily indicative of the results to be expected for any other interim period or for the entire year. Each of the Company’s fiscal reporting periods ends on the Friday nearest to the quarter ending date and generally consists of 13 weeks. Unless the context indicates otherwise “we,” “us,” the “Company,” and “STAAR” refer to STAAR Surgical Company and its consolidated subsidiaries. During the quarter ended March 31, 2017, the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2015-11, “Simplifying the Measurement of Inventory”. ASU 2015-11 requires a company to measure inventory at the lower of cost and net realizable value. Net realizable value is defined as the “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation”. We adopted this standard as of December 31, 2016 (beginning of FY 2017). The adoption of ASU 2015-11 did not have a material effect on the consolidated financial statements. During the quarter ended March 31, 2017, the Company adopted ASU 2016-09, “Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting”, which simplified several aspects of the accounting for share-based payment transactions, including the income tax consequences, forfeitures, classification of awards as either equity or liabilities, and classification of awards on the statement of cash flows. We adopted this standard as of December 31, 2016 (beginning of FY 2017). The adoption of ASU 2016-09 did not have a material effect on the consolidated financial statements and prior periods were not restated. During the quarter ended March 31, 2017, the Company adopted ASU 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes”, on a retrospective basis, which changes how deferred taxes are classified on the Company’s balance sheets. Accordingly, the Company adjusted the December 30, 2016 balance sheet for current and noncurrent deferred tax assets to conform to the presentation for the current quarter due to the adoption of ASU 2015-17. The ASU eliminates the requirement to present deferred tax liabilities and assets as current and noncurrent on the balance sheet. Instead, companies are required to classify all deferred tax assets and liabilities as noncurrent. We adopted this standard as of December 31, 2016 (beginning of FY 2017). The adoption of ASU 2015-17 did not have a material effect on the consolidated financial statements. During the quarter ended March 31, 2017, the Company adopted ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash”, that requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and restricted cash and that restricted cash be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. We early adopted this standard as of December 31, 2016 (beginning of FY 2017). The adoption of ASU 2016-18 did not have a material effect on the consolidated financial statements, however, prior period restricted cash was added to beginning and ending cash and cash equivalents in the statement of cash flows to conform to the current presentation. September 29, December 30, September 30, January 1, 2017 2016 2016 2016 Cash and cash equivalents $ 16,133 $ 13,999 $ 14,284 $ 13,402 Restricted cash included in other long-term assets 120 119 119 119 Total cash, cash equivalents, and restricted cash $ 16,253 $ 14,118 $ 14,403 $ 13,521 The Company has restricted cash of approximately $ 120,000 Recent Accounting Pronouncements Not Yet Adopted In May 2017, the FASB issued ASU 2017-09 “Scope of Modification Accounting,” which amends the scope of modification accounting for share-based payment arrangements, provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under ASC 718. For all entities, the ASU is effective for annual reporting periods, including interim periods within those annual reporting periods, beginning after December 15, 2017, and thereafter. Early adoption is permitted, including adoption in any interim period. We will adopt this standard as of December 30, 2017 (beginning of FY 2018) and do not expect the adoption of the standard will have a material impact on our consolidated financial statements. In March 2017, the FASB issued ASU 2017-07, “Compensation-Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” The standard requires that an employer report the service cost component in the same line items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside of operating profit. The standard is effective for public companies for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Prior periods are required to be recast. We will adopt this standard as of December 30, 2017 (beginning of FY 2018) and are currently evaluating the impact ASU 2017-07 may have on our consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory”, which removes the prohibition in ASC 740 against the immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory. The ASU is effective for public companies for fiscal years beginning after December 15, 2017, and interim periods within those annual periods. The ASU should be applied on a modified retrospective basis, recognizing the effects in retained earnings as of the beginning of the year of adoption. We will adopt this standard as of December 30, 2017 (beginning of FY 2018) and are currently evaluating the impact ASU 2016-16 may have on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, “Intangibles—Goodwill and Other (Topic 350)”, which simplifies the test for goodwill impairment. ASU 2017-04 is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company does not expect ASU 2017-04 to have a material effect on the consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”), which clarifies how companies present and classify certain cash receipts and cash payments in the statement of cash flows. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017 (beginning of FY 2018) and early adoption is permitted. The Company is currently evaluating the impact ASU 2016-15 may have on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”, which requires lessees to recognize assets and liabilities for leases with lease terms greater than twelve months in the statement of financial position. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 also requires improved disclosures to help users of financial statements better understand the amount, timing and uncertainty of cash flows arising from leases. The update is effective for fiscal years beginning after December 15, 2018, including interim reporting periods within that reporting period. Early adoption is permitted. The Company is gathering data to evaluate the impact the adoption of ASU 2016-02 may have on its consolidated financial statements and expects to complete the evaluation by the third quarter of 2018. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which supersedes nearly all existing revenue recognition guidance under GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five-step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing GAAP. The revised revenue standard is effective for public entities for annual periods beginning after December 15, 2017, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients; or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). In August 2015, ASU 2014-09 was amended by ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date”, which defers the effective date of ASU 2014-09 by one year for all entities and permits early adoption on a limited basis. ASU 2014-09 was subsequently amended by four additional pronouncements: (i) ASU No. 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing;” (ii) ASU No. 2016-11, “Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting”; (iii) ASU No. 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients”; and (iv) ASU No. 2016-20, “Revenue from Contracts with Customers (Topic 606): Technical Corrections and Improvements to Topic 606”. The Company is nearing completion of its assessment and is performing a final review of its evaluation of the new standard, including a detailed review of its revenue streams and contracts. The majority of the Company’s revenue relates to the sale of implantable lenses (ICLs and IOLs) for which revenue is recognized at a point in time (i.e., typically at shipping point, except for certain customers and for our STAAR Japan subsidiary, which is typically recognized when the customer receives the product). The Company does not believe the adoption of the new standard will materially impact these transactions. The Company has also determined that it will make accounting policy elections to 1) treat shipping and handling activities that occur after the customer obtains control of the goods as fulfillment costs, and 2) exclude sales and other similar taxes from the measurement of the transaction price. Based on the work performed to date, the Company does not expect adoption of the new standard to have a material impact on its consolidated financial statements. The Company is still evaluating the effect the standard will have on its financial statement disclosures. The Company expects to apply the modified retrospective method to adopt the standard on December 30, 2017.

Inventories

Inventories	9 Months Ended
	Sep. 29, 2017
Inventory Disclosure [Abstract]
Inventory Disclosure [Text Block]	Note 2 — Inventories September 29, December 30, 2017 2016 Raw materials and purchased parts $ 2,330 $ 2,264 Work-in-process 2,363 1,924 Finished goods 11,059 14,268 15,752 18,456 Less: inventory reserves 2,478 3,631 $ 13,274 $ 14,825

Prepayments, Deposits, and Othe

Prepayments, Deposits, and Other Current Assets	9 Months Ended
	Sep. 29, 2017
Prepaid Expenses Deposits and Other Current Assets Disclosure [Abstract]
Prepayments, Deposits, and Other Current Assets Disclosure [Text Block]	Note 3 — Prepayments, Deposits, and Other Current Assets September 29, December 30, 2017 2016 Prepayments and deposits $ 1,944 $ 1,003 Prepaid insurance 607 935 Income tax receivable 532 686 Consumption tax receivable 325 573 Value added tax (VAT) receivable 809 668 Pension benefit prepayment 90 — Other current assets (1) 629 484 $ 4,936 $ 4,349 (1) No individual item in “Other current assets” above exceeds 5% of the total prepayments, deposits, and other current assets.

Property, Plant and Equipment

Property, Plant and Equipment	9 Months Ended
	Sep. 29, 2017
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment Disclosure [Text Block]	Note 4 — Property, Plant and Equipment September 29, December 30, 2017 2016 Machinery and equipment $ 17,680 $ 19,807 Furniture and fixtures 9,410 8,025 Leasehold improvements 9,597 9,179 36,687 37,011 Less: accumulated depreciation 25,688 25,221 $ 10,999 $ 11,790 During the third quarter of 2017, the Company disposed of approximately $ 1.6 21,000

Intangible Assets

Intangible Assets	9 Months Ended
	Sep. 29, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets Disclosure [Text Block]	Note 5 — Intangible Assets September 29, 2017 December 30, 2016 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Net Amount Amortization Net Long-lived intangible assets: Patents and licenses $ 9,245 $ (8,965) $ 280 $ 9,224 $ (8,930) $ 294 Customer relationships 1,393 (1,359) 34 1,343 (1,209) 134 Developed technology 886 (874) 12 854 (809) 45 Total $ 11,524 $ (11,198) $ 326 $ 11,421 $ (10,948) $ 473

Other Current Liabilities

Other Current Liabilities	9 Months Ended
	Sep. 29, 2017
Other Liabilities Disclosure [Abstract]
Other Liabilities Disclosure [Text Block]	Note 6 — Other Current Liabilities September 29, December 30, 2017 2016 Accrued salaries and wages $ 3,080 $ 2,334 Accrued bonuses 1,680 1,414 Accrued consumption tax 304 424 Accrued insurance 197 501 Accrued income taxes 371 1,095 Other (1) 1,621 1,507 $ 7,253 $ 7,275 (1) No individual item in “Other” above exceeds 5% of the total other current liabilities

Defined Benefit Pension Plans

Defined Benefit Pension Plans	9 Months Ended
	Sep. 29, 2017
Defined Benefit Plan [Abstract]
Pension and Other Postretirement Benefits Disclosure [Text Block]	Note 7 — Defined Benefit Pension Plans The Company has defined benefit plans covering employees of its Switzerland and Japan operations. Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, 2017 2016 2017 2016 Service cost $ 126 $ 155 $ 380 $ 466 Interest cost 15 19 43 54 Expected return on plan assets (25) (24) (71) (69) Net amortization of transitional obligation (a) 3 3 9 10 Actuarial loss recognized in current period (a) 17 24 51 70 Total $ 136 $ 177 $ 412 $ 531 (a) Amounts reclassified from accumulated other comprehensive loss. During the nine months ended September 29, 2017 and September 30, 2016, the Company made cash contributions of approximately $ 518,000 419,000

Basic and Diluted Net Income (L

Basic and Diluted Net Income (Loss) Per Share	9 Months Ended
	Sep. 29, 2017
Earnings Per Share [Abstract]
Earnings Per Share [Text Block]	Note 8 — Basic and Diluted Net Income (Loss) Per Share Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, 2017 2016 2017 2016 Numerator: Net income (loss) $ 1,173 $ (1,778) $ (2,001) $ (11,962) Denominator: Weighted average common shares outstanding 41,131 40,501 40,960 40,242 Less: Unvested restricted stock 21 15 21 15 Denominator for basic and diluted calculation 41,110 40,486 40,939 40,227 Effect of dilutive shares: Options 837 — — — Restricted stock and units 157 — — — Denominator for diluted calculation 42,104 40,486 40,939 40,227 Net income (loss) per share – basic $ 0.03 $ (0.04) $ (0.05) $ (0.30) Net income (loss) per share – diluted $ 0.03 $ (0.04) $ (0.05) $ (0.30) Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, 2017 2016 2017 2016 Options 1,545 2,134 2,497 2,937 Restricted stock and units — 60 159 48 Total 1,545 2,194 2,656 2,985

Geographic and Product Data

Geographic and Product Data	9 Months Ended
	Sep. 29, 2017
Segment Reporting [Abstract]
Segment Reporting Disclosure [Text Block]	Note 9 — Geographic and Product Data 60 10 Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, 2017 2016 2017 2016 China $ 7,164 $ 4,254 $ 17,489 $ 11,749 Japan 4,633 4,029 12,849 12,258 United States 1,896 2,419 5,946 7,355 Other 9,780 9,350 29,475 28,933 Total $ 23,473 $ 20,052 $ 65,759 $ 60,295 100% of the Company’s sales are generated from the ophthalmic surgical product segment and the chief operating decision maker makes operating decisions and allocates resources based upon the consolidated operating results, and therefore the Company operates as one operating segment for financial reporting purposes. The Company’s principal products are implantable Collamer lenses (“ICLs”) used in refractive surgery and intraocular lenses (“IOLs”) used in cataract surgery. The composition of the Company’s net sales by product line is as follows (in thousands): Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, 2017 2016 2017 2016 ICLs $ 18,110 $ 14,801 $ 49,698 $ 43,389 IOLs 3,892 4,649 12,875 14,783 Other surgical products 1,471 602 3,186 2,123 Total $ 23,473 $ 20,052 $ 65,759 $ 60,295 One customer, our distributor in China, accounted for 31 27 21 19 26 22

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 29, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	Note 10 — Stock-Based Compensation Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, 2017 2016 2017 2016 Employee stock options $ 443 $ 208 $ 1,204 $ 5,257 Restricted stock 50 32 136 259 Restricted stock units 314 146 845 2,569 Nonemployee stock options — — — 58 Total $ 807 $ 386 $ 2,185 $ 8,143 Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, 2017 2016 2017 2016 Cost of sales $ 2 $ — $ 6 $ 560 General and administrative 377 248 1,035 3,936 Marketing and selling 214 72 558 1,544 Research and development 214 66 586 2,103 Total stock compensation expense 807 386 2,185 8,143 Amounts capitalized as part of inventory 107 39 269 227 Total $ 914 $ 425 $ 2,454 $ 8,370 Stock Option Plan Our Amended and Restated Omnibus Equity Incentive Plan (“the Plan”) provides for various forms of stock-based incentives. To date, of the available forms of awards under the Plan, the Company has granted only stock options, restricted stock, unrestricted share grants, restricted stock units (“RSUs”), and performance contingent stock units. Options under the plan are granted at fair market value on the date of grant, become exercisable over a three-year period, or as determined by our Board of Directors, and expire over periods not exceeding 10 3,826,956 0.95 17.62 20,833 438,039 1,273,420 Assumptions The fair value of each option award is estimated on the date of grant using a Black-Scholes option valuation model applying the weighted-average assumptions noted in the following table. Expected volatilities are based on historical volatility of the Company’s stock. The expected term of options granted is derived from the historical exercises and post-vesting cancellations and represents the period of time that options granted are expected to be outstanding. The Company has calculated an 11.3 Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, 2017 2016 2017 2016 Expected dividend yield 0 % 0 % 0 % 0 % Expected volatility 57 % 57 % 57 % 57 % Risk-free interest rate 1.83 % 1.19 % 1.95 % 1.34 % Expected term (in years) 5.67 5.57 5.67 5.57 Options Shares (000’s) Outstanding at December 30, 2016 3,502 Granted 829 Exercised (334) Forfeited or expired (170) Outstanding at September 29, 2017 3,827 Exercisable at September 29, 2017 2,752 Restricted Shares RSUs (000’s) (000’s) Outstanding at December 30, 2016 23 274 Granted 21 291 Vested (23) (93) Forfeited — (34) Outstanding at September 29, 2017 21 438

Income Taxes

Income Taxes	9 Months Ended
	Sep. 29, 2017
Income Tax Disclosure [Abstract]
Income Tax Disclosure [Text Block]	Note 11 — Income Taxes As discussed in Note 1 of the notes to the condensed consolidated financial statements, the Company adopted an accounting standards update regarding the recognition of excess tax benefits through the income statement upon settlement of share-based compensation awards. As the Company has a full valuation allowance, any realized benefits would be offset by the valuation allowance with no impact to the tax provision. Accordingly, there is no benefit reflected in the current tax provision and no restatement of the prior period. The Company’s quarterly provision for income taxes is determined by estimating an annual effective tax rate. This estimate may fluctuate throughout the year as new information becomes available affecting its underlying assumptions. The Company recorded an income tax provision of $ 0.4 0.7 The income tax benefit of $ 1.7 All earnings from the Company’s subsidiaries are not considered to be permanently reinvested. Accordingly, the Company provides withholding and U.S. taxes on all unremitted foreign earnings. The Company reduced its deferred tax liability in 2016 related to withholding taxes from unremitted foreign earnings by the accumulated deficit of one of its foreign subsidiaries dissolved as of April 1, 2016.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 29, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]	Note 12 — Commitments and Contingencies Lines of Credit Since 1988, the Company’s wholly owned Japanese subsidiary, STAAR Japan, has had an agreement, as amended on or about November 21, 2016, with Mizuho Bank which provides for borrowings of up to 500,000,000 (approximately 0.12% as of September 29, 2017) plus a 0.50% spread, and may be renewed annually (the current line expires on November 21, 2017). 500,000 4.4 4.3 14 In August 2010, the Company’s wholly owned Swiss subsidiary, STAAR Surgical AG, entered into a credit agreement with Credit Suisse (the Bank). The credit agreement provides for borrowings of up to 1,000,000 1.0 0.25 Covenant Compliance The Company is in compliance with the covenants of its credit facilities as of the date of this filing. Lease Line of Credit (Capital Leases) On January 30, 2017, the Company entered into lease schedule 010 with Farnam Street Financial, Inc (“Farnam”). The line of credit provides for borrowings of up to $ 2.0 3.94% per $1 4.75% per $1 737,456 On January 31, 2017, the Company entered into lease schedule 009R with Farnam. Under 009R, equipment with a cost of $ 1,957,000 24 3.94% per $1 4.75% per $1 1,310,609 On June 12, 2014, the Company entered into lease schedule 008R with Farnam. Under the agreement, hardware and non-hardware with a cost of $ 964,612 36 2.81% per $1 3.12% per $1 Litigation and Claims From time to time the Company may be subject to various claims and legal proceedings arising out of the normal course of our business. These claims and legal proceedings may relate to contractual rights and obligations, employment matters, and claims of product liability. The most significant of these actions, proceedings and investigations are described below. STAAR maintains insurance coverage for product liability and certain securities claims. Legal proceedings can extend for several years, and most of the matters concerning the Company are at early stages of the legal and administrative process. As a result, these matters have not yet progressed sufficiently through discovery and/or development of important factual information and legal issues to enable the Company to determine whether the proceedings are material to the Company or to estimate a range of possible loss, if any. Unless otherwise disclosed, the Company is unable to estimate the possible loss or range of loss for the legal proceedings described below. While it is not possible to accurately predict or determine outcomes of these items, an adverse determination in one or more of these items currently pending could have a material adverse effect on the Company’s consolidated results of operations, financial position, or cash flows. Stockholder Securities Litigation: Todd Action On July 8, 2014, a putative securities class action lawsuit was filed by Edward Todd against STAAR and three officers in the U.S. District Court for the Central District of California. 7,000 7,000 7,000 September 29, 2017. Stockholder Derivative Litigation: Forestal Action On June 21, 2016, Kevin Forestal filed a stockholder derivative complaint against our then-current Board of Directors, which included Caren Mason, Mark B. Logan, Stephen C. Farrell, Richard A. Meier, John C. Moore, J. Steven Roush, Louis E. Silverman, and William P. Wall, and STAAR as well as Barry G. Caldwell and John S. Santos in the U.S. District Court for the Central District of California. The plaintiff alleges breaches of fiduciary duties by, among other things, allowing STAAR to disseminate misleading statements to investors regarding the condition of the Company’s Quality System, failing to properly oversee the Company, and unjust enrichment. The complaint seeks damages, restitution and governance reforms, attorneys’ fees, and costs. On January 31, 2017, the court granted the Company’s Motion to Dismiss. On February 6, 2017, plaintiff filed a Notice of Appeal, and on July 17, 2017 plaintiff filed his appellate brief. On September 14, 2017, the Company filed its appellate answering brief. Although the ultimate outcome of this action cannot be determined with certainty, the Company believes that the allegations in the Complaint are without merit. The Company has not recorded any loss or accrual in the accompanying condensed consolidated financial statements at September 29, 2017 and December 30, 2016 for this matter as the likelihood and amount of loss, if any, has not been determined and is not currently estimable. Employment Agreements The Company’s Chief Executive Officer and certain officers have as provisions of their agreements certain rights, including continuance of cash compensation and benefits, upon a “change in control,” which may include an acquisition of substantially all of its assets, or termination “without cause or for good reason” as defined in the employment agreements.

Reclassifications

Reclassifications	9 Months Ended
	Sep. 29, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Reclassifications [Text Block]	Note 13 — Reclassifications The Company reclassified inventory reserves from Changes in Working Capital - Inventory in the Statement of Cash Flows to the non-cash section of the Statement for both the nine months ended September 29, 2017 and September 30, 2016. The Company also reclassified $ 65,000

Basis of Presentation and Sig20

Basis of Presentation and Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 29, 2017
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	The condensed consolidated financial statements of the Company present the financial position, results of operations, and cash flows of STAAR Surgical Company and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities Exchange Commission. In accordance with those rules and regulations certain information and footnote disclosures normally included in comprehensive financial statements have been condensed or omitted pursuant to such rules and regulations. The consolidated balance sheet as of December 30, 2016 was derived from the audited financial statements at that date, but does not include all the information and footnotes required by GAAP. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 30, 2016. The condensed consolidated financial statements for the three and nine months ended September 29, 2017 and September 30, 2016, in the opinion of management, include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the Company’s financial condition and results of operations. The results of operations for the three and nine months ended September 29, 2017 and September 30, 2016, are not necessarily indicative of the results to be expected for any other interim period or for the entire year. Each of the Company’s fiscal reporting periods ends on the Friday nearest to the quarter ending date and generally consists of 13 weeks. Unless the context indicates otherwise “we,” “us,” the “Company,” and “STAAR” refer to STAAR Surgical Company and its consolidated subsidiaries.
New Accounting Pronouncements, Policy [Policy Text Block]	During the quarter ended March 31, 2017, the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2015-11, “Simplifying the Measurement of Inventory”. ASU 2015-11 requires a company to measure inventory at the lower of cost and net realizable value. Net realizable value is defined as the “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation”. We adopted this standard as of December 31, 2016 (beginning of FY 2017). The adoption of ASU 2015-11 did not have a material effect on the consolidated financial statements. During the quarter ended March 31, 2017, the Company adopted ASU 2016-09, “Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting”, which simplified several aspects of the accounting for share-based payment transactions, including the income tax consequences, forfeitures, classification of awards as either equity or liabilities, and classification of awards on the statement of cash flows. We adopted this standard as of December 31, 2016 (beginning of FY 2017). The adoption of ASU 2016-09 did not have a material effect on the consolidated financial statements and prior periods were not restated. During the quarter ended March 31, 2017, the Company adopted ASU 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes”, on a retrospective basis, which changes how deferred taxes are classified on the Company’s balance sheets. Accordingly, the Company adjusted the December 30, 2016 balance sheet for current and noncurrent deferred tax assets to conform to the presentation for the current quarter due to the adoption of ASU 2015-17. The ASU eliminates the requirement to present deferred tax liabilities and assets as current and noncurrent on the balance sheet. Instead, companies are required to classify all deferred tax assets and liabilities as noncurrent. We adopted this standard as of December 31, 2016 (beginning of FY 2017). The adoption of ASU 2015-17 did not have a material effect on the consolidated financial statements. During the quarter ended March 31, 2017, the Company adopted ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash”, that requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and restricted cash and that restricted cash be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. We early adopted this standard as of December 31, 2016 (beginning of FY 2017). The adoption of ASU 2016-18 did not have a material effect on the consolidated financial statements, however, prior period restricted cash was added to beginning and ending cash and cash equivalents in the statement of cash flows to conform to the current presentation. September 29, December 30, September 30, January 1, 2017 2016 2016 2016 Cash and cash equivalents $ 16,133 $ 13,999 $ 14,284 $ 13,402 Restricted cash included in other long-term assets 120 119 119 119 Total cash, cash equivalents, and restricted cash $ 16,253 $ 14,118 $ 14,403 $ 13,521 The Company has restricted cash of approximately $ 120,000 Recent Accounting Pronouncements Not Yet Adopted In May 2017, the FASB issued ASU 2017-09 “Scope of Modification Accounting,” which amends the scope of modification accounting for share-based payment arrangements, provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under ASC 718. For all entities, the ASU is effective for annual reporting periods, including interim periods within those annual reporting periods, beginning after December 15, 2017, and thereafter. Early adoption is permitted, including adoption in any interim period. We will adopt this standard as of December 30, 2017 (beginning of FY 2018) and do not expect the adoption of the standard will have a material impact on our consolidated financial statements. In March 2017, the FASB issued ASU 2017-07, “Compensation-Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” The standard requires that an employer report the service cost component in the same line items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside of operating profit. The standard is effective for public companies for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Prior periods are required to be recast. We will adopt this standard as of December 30, 2017 (beginning of FY 2018) and are currently evaluating the impact ASU 2017-07 may have on our consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory”, which removes the prohibition in ASC 740 against the immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory. The ASU is effective for public companies for fiscal years beginning after December 15, 2017, and interim periods within those annual periods. The ASU should be applied on a modified retrospective basis, recognizing the effects in retained earnings as of the beginning of the year of adoption. We will adopt this standard as of December 30, 2017 (beginning of FY 2018) and are currently evaluating the impact ASU 2016-16 may have on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, “Intangibles—Goodwill and Other (Topic 350)”, which simplifies the test for goodwill impairment. ASU 2017-04 is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company does not expect ASU 2017-04 to have a material effect on the consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”), which clarifies how companies present and classify certain cash receipts and cash payments in the statement of cash flows. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017 (beginning of FY 2018) and early adoption is permitted. The Company is currently evaluating the impact ASU 2016-15 may have on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”, which requires lessees to recognize assets and liabilities for leases with lease terms greater than twelve months in the statement of financial position. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 also requires improved disclosures to help users of financial statements better understand the amount, timing and uncertainty of cash flows arising from leases. The update is effective for fiscal years beginning after December 15, 2018, including interim reporting periods within that reporting period. Early adoption is permitted. The Company is gathering data to evaluate the impact the adoption of ASU 2016-02 may have on its consolidated financial statements and expects to complete the evaluation by the third quarter of 2018. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which supersedes nearly all existing revenue recognition guidance under GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five-step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing GAAP. The revised revenue standard is effective for public entities for annual periods beginning after December 15, 2017, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients; or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). In August 2015, ASU 2014-09 was amended by ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date”, which defers the effective date of ASU 2014-09 by one year for all entities and permits early adoption on a limited basis. ASU 2014-09 was subsequently amended by four additional pronouncements: (i) ASU No. 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing;” (ii) ASU No. 2016-11, “Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting”; (iii) ASU No. 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients”; and (iv) ASU No. 2016-20, “Revenue from Contracts with Customers (Topic 606): Technical Corrections and Improvements to Topic 606”. The Company is nearing completion of its assessment and is performing a final review of its evaluation of the new standard, including a detailed review of its revenue streams and contracts. The majority of the Company’s revenue relates to the sale of implantable lenses (ICLs and IOLs) for which revenue is recognized at a point in time (i.e., typically at shipping point, except for certain customers and for our STAAR Japan subsidiary, which is typically recognized when the customer receives the product). The Company does not believe the adoption of the new standard will materially impact these transactions. The Company has also determined that it will make accounting policy elections to 1) treat shipping and handling activities that occur after the customer obtains control of the goods as fulfillment costs, and 2) exclude sales and other similar taxes from the measurement of the transaction price. Based on the work performed to date, the Company does not expect adoption of the new standard to have a material impact on its consolidated financial statements. The Company is still evaluating the effect the standard will have on its financial statement disclosures. The Company expects to apply the modified retrospective method to adopt the standard on December 30, 2017.

Basis of Presentation and Sig21

Basis of Presentation and Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 29, 2017
Accounting Policies [Abstract]
Schedule of Cash and Cash Equivalents [Table Text Block]	September 29, December 30, September 30, January 1, 2017 2016 2016 2016 Cash and cash equivalents $ 16,133 $ 13,999 $ 14,284 $ 13,402 Restricted cash included in other long-term assets 120 119 119 119 Total cash, cash equivalents, and restricted cash $ 16,253 $ 14,118 $ 14,403 $ 13,521

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 29, 2017
Inventory Disclosure [Abstract]
Schedule of Inventory, Current [Table Text Block]	Inventories, net are stated at the lower of cost and net realizable value, determined on a first-in, first-out basis and consisted of the following (in thousands): September 29, December 30, 2017 2016 Raw materials and purchased parts $ 2,330 $ 2,264 Work-in-process 2,363 1,924 Finished goods 11,059 14,268 15,752 18,456 Less: inventory reserves 2,478 3,631 $ 13,274 $ 14,825

Prepayments, Deposits, and Ot23

Prepayments, Deposits, and Other Current Assets (Tables)	9 Months Ended
	Sep. 29, 2017
Prepaid Expenses and Other Current Assets Disclosure [Abstract]
Schedule Of Prepayments, Deposits, and Other Current Assets Disclosure [Table Text Block]	Prepayments, deposits, and other current assets consisted of the following (in thousands): September 29, December 30, 2017 2016 Prepayments and deposits $ 1,944 $ 1,003 Prepaid insurance 607 935 Income tax receivable 532 686 Consumption tax receivable 325 573 Value added tax (VAT) receivable 809 668 Pension benefit prepayment 90 — Other current assets (1) 629 484 $ 4,936 $ 4,349 (1) No individual item in “Other current assets” above exceeds 5% of the total prepayments, deposits, and other current assets.

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	9 Months Ended
	Sep. 29, 2017
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment [Table Text Block]	Property, plant and equipment, net consisted of the following (in thousands): September 29, December 30, 2017 2016 Machinery and equipment $ 17,680 $ 19,807 Furniture and fixtures 9,410 8,025 Leasehold improvements 9,597 9,179 36,687 37,011 Less: accumulated depreciation 25,688 25,221 $ 10,999 $ 11,790

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
	Sep. 29, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived Intangible Assets [Table Text Block]	Intangible assets, net consisted of the following (in thousands): September 29, 2017 December 30, 2016 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Net Amount Amortization Net Long-lived intangible assets: Patents and licenses $ 9,245 $ (8,965) $ 280 $ 9,224 $ (8,930) $ 294 Customer relationships 1,393 (1,359) 34 1,343 (1,209) 134 Developed technology 886 (874) 12 854 (809) 45 Total $ 11,524 $ (11,198) $ 326 $ 11,421 $ (10,948) $ 473

Other Current Liabilities (Tabl

Other Current Liabilities (Tables)	9 Months Ended
	Sep. 29, 2017
Other Liabilities Disclosure [Abstract]
Schedule of Accrued Liabilities [Table Text Block]	Other current liabilities consisted of the following (in thousands): September 29, December 30, 2017 2016 Accrued salaries and wages $ 3,080 $ 2,334 Accrued bonuses 1,680 1,414 Accrued consumption tax 304 424 Accrued insurance 197 501 Accrued income taxes 371 1,095 Other (1) 1,621 1,507 $ 7,253 $ 7,275 (1) No individual item in “Other” above exceeds 5% of the total other current liabilities

Defined Benefit Pension Plans (

Defined Benefit Pension Plans (Tables)	9 Months Ended
	Sep. 29, 2017
Defined Benefit Plan [Abstract]
Schedule of Net Benefit Costs [Table Text Block]	The following table summarizes the components of net periodic pension cost recorded for the Company’s defined benefit pension plans (in thousands): Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, 2017 2016 2017 2016 Service cost $ 126 $ 155 $ 380 $ 466 Interest cost 15 19 43 54 Expected return on plan assets (25) (24) (71) (69) Net amortization of transitional obligation (a) 3 3 9 10 Actuarial loss recognized in current period (a) 17 24 51 70 Total $ 136 $ 177 $ 412 $ 531 (a) Amounts reclassified from accumulated other comprehensive loss.

Basic and Diluted Net Income 28

Basic and Diluted Net Income (Loss) Per Share (Tables)	9 Months Ended
	Sep. 29, 2017
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands except per share amounts): Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, 2017 2016 2017 2016 Numerator: Net income (loss) $ 1,173 $ (1,778) $ (2,001) $ (11,962) Denominator: Weighted average common shares outstanding 41,131 40,501 40,960 40,242 Less: Unvested restricted stock 21 15 21 15 Denominator for basic and diluted calculation 41,110 40,486 40,939 40,227 Effect of dilutive shares: Options 837 — — — Restricted stock and units 157 — — — Denominator for diluted calculation 42,104 40,486 40,939 40,227 Net income (loss) per share – basic $ 0.03 $ (0.04) $ (0.05) $ (0.30) Net income (loss) per share – diluted $ 0.03 $ (0.04) $ (0.05) $ (0.30)
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]	The following table sets forth the weighted average number of options to purchase shares of common stock and restricted stock and units, which were not included in the calculation of diluted per share amounts because the effects would be anti-dilutive (in thousands). Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, 2017 2016 2017 2016 Options 1,545 2,134 2,497 2,937 Restricted stock and units — 60 159 48 Total 1,545 2,194 2,656 2,985

Geographic and Product Data (Ta

Geographic and Product Data (Tables)	9 Months Ended
	Sep. 29, 2017
Segment Reporting [Abstract]
Revenue from External Customers by Geographic Areas [Table Text Block]	The composition of the Company’s net sales to unaffiliated customers is set forth below (in thousands): Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, 2017 2016 2017 2016 China $ 7,164 $ 4,254 $ 17,489 $ 11,749 Japan 4,633 4,029 12,849 12,258 United States 1,896 2,419 5,946 7,355 Other 9,780 9,350 29,475 28,933 Total $ 23,473 $ 20,052 $ 65,759 $ 60,295
Revenue from External Customers by Products and Services [Table Text Block]	The composition of the Company’s net sales by product line is as follows (in thousands): Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, 2017 2016 2017 2016 ICLs $ 18,110 $ 14,801 $ 49,698 $ 43,389 IOLs 3,892 4,649 12,875 14,783 Other surgical products 1,471 602 3,186 2,123 Total $ 23,473 $ 20,052 $ 65,759 $ 60,295

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 29, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule Of Compensation Cost [Table Text Block]	The cost that has been charged against income for stock-based compensation is set forth below (in thousands): Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, 2017 2016 2017 2016 Employee stock options $ 443 $ 208 $ 1,204 $ 5,257 Restricted stock 50 32 136 259 Restricted stock units 314 146 845 2,569 Nonemployee stock options — — — 58 Total $ 807 $ 386 $ 2,185 $ 8,143
Schedule Of Share-Based Compensation, Stock Options, Activity [Table Text Block]	The Company recorded stock-based compensation costs in the following categories on the accompanying condensed consolidated statements of operations (in thousands): Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, 2017 2016 2017 2016 Cost of sales $ 2 $ — $ 6 $ 560 General and administrative 377 248 1,035 3,936 Marketing and selling 214 72 558 1,544 Research and development 214 66 586 2,103 Total stock compensation expense 807 386 2,185 8,143 Amounts capitalized as part of inventory 107 39 269 227 Total $ 914 $ 425 $ 2,454 $ 8,370
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	The risk-free rate is based on the U.S. Treasury yield curve corresponding to the expected term at the time of the grant. Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, 2017 2016 2017 2016 Expected dividend yield 0 % 0 % 0 % 0 % Expected volatility 57 % 57 % 57 % 57 % Risk-free interest rate 1.83 % 1.19 % 1.95 % 1.34 % Expected term (in years) 5.67 5.57 5.67 5.57
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]	A summary of option activity under the Plan for the nine-month period ended September 29, 2017 is presented below: Options Shares (000’s) Outstanding at December 30, 2016 3,502 Granted 829 Exercised (334) Forfeited or expired (170) Outstanding at September 29, 2017 3,827 Exercisable at September 29, 2017 2,752
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block]	A summary of restricted stock and RSU activity under the Plan for the nine-month period ended September 29, 2017 is presented below: Restricted Shares RSUs (000’s) (000’s) Outstanding at December 30, 2016 23 274 Granted 21 291 Vested (23) (93) Forfeited — (34) Outstanding at September 29, 2017 21 438

Basis of Presentation and Sig31

Basis of Presentation and Significant Accounting Policies (Details) - USD ($) $ in Thousands	Sep. 29, 2017	Dec. 30, 2016	Sep. 30, 2016	Jan. 01, 2016
Cash and cash equivalents	$ 16,133	$ 13,999	$ 14,284	$ 13,402
Restricted cash included in other long-term assets	120	119	119	119
Total cash, cash equivalents, and restricted cash as shown in the statement of cash flows	$ 16,253	$ 14,118	$ 14,403	$ 13,521

Basis of Presentation and Sig32

Basis of Presentation and Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands	Sep. 29, 2017	Dec. 30, 2016	Sep. 30, 2016	Jan. 01, 2016
Organization And Description Of Business And Accounting Policies [Line Items]
Restricted Cash and Cash Equivalents, Current	$ 120	$ 119	$ 119	$ 119

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Sep. 29, 2017	Dec. 30, 2016
Inventory [Line Items]
Raw materials and purchased parts	$ 2,330	$ 2,264
Work-in-process	2,363	1,924
Finished goods	11,059	14,268
Inventory, Gross	15,752	18,456
Less: inventory reserves	2,478	3,631
Inventory, Net	$ 13,274	$ 14,825

Prepayments, Deposits, and Ot34

Prepayments, Deposits, and Other Current Assets (Details) - USD ($) $ in Thousands		Sep. 29, 2017	Dec. 30, 2016
Prepayments, Deposits, and Other Current Assets [Line Items]
Prepayments and deposits		$ 1,944	$ 1,003
Prepaid insurance		607	935
Income tax receivable		532	686
Consumption tax receivable		325	573
Value added tax (VAT) receivable		809	668
Pension benefit prepayment		90	0
Other current assets	[1]	629	484
Prepayments, deposits, and other current assets		$ 4,936	$ 4,349
[1]	No individual item in “Other current assets” above exceeds 5% of the total prepayments, deposits, and other current assets.

Property, Plant and Equipment35

Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Sep. 29, 2017	Dec. 30, 2016
Property, Plant and Equipment [Line Items]
Machinery and equipment	$ 17,680	$ 19,807
Furniture and fixtures	9,410	8,025
Leasehold improvements	9,597	9,179
Property, Plant and Equipment, Gross	36,687	37,011
Less: accumulated depreciation	25,688	25,221
Property, plant and equipment, net	$ 10,999	$ 11,790

Property, Plant and Equipment36

Property, Plant and Equipment (Details Textual)	3 Months Ended
	Sep. 29, 2017USD ($)
Property, Plant and Equipment [Line Items]
Impaired Assets to be Disposed of by Method Other than Sale, Carrying Value of Asset	$ 1,600,000
Gain (Loss) on Disposition of Property Plant Equipment	$ 21,000

Intangible Assets (Details)

Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 29, 2017	Dec. 30, 2016
Long-lived intangible assets:
Long-lived intangible assets, Gross Carrying Amount	$ 11,524	$ 11,421
Long-lived intangible assets, Accumulated Amortization	(11,198)	(10,948)
Long-lived intangible assets, Net	326	473
Patents and Licenses [Member]
Long-lived intangible assets:
Long-lived intangible assets, Gross Carrying Amount	9,245	9,224
Long-lived intangible assets, Accumulated Amortization	(8,965)	(8,930)
Long-lived intangible assets, Net	280	294
Customer relationships [Member]
Long-lived intangible assets:
Long-lived intangible assets, Gross Carrying Amount	1,393	1,343
Long-lived intangible assets, Accumulated Amortization	(1,359)	(1,209)
Long-lived intangible assets, Net	34	134
Developed technology [Member]
Long-lived intangible assets:
Long-lived intangible assets, Gross Carrying Amount	886	854
Long-lived intangible assets, Accumulated Amortization	(874)	(809)
Long-lived intangible assets, Net	$ 12	$ 45

Other Current Liabilities (Deta

Other Current Liabilities (Details) - USD ($) $ in Thousands		Sep. 29, 2017	Dec. 30, 2016
Other Liabilities, Current [Line Items]
Accrued salaries and wages		$ 3,080	$ 2,334
Accrued bonuses		1,680	1,414
Accrued consumption tax		304	424
Accrued insurance		197	501
Accrued income taxes		371	1,095
Other	[1]	1,621	1,507
Other current liabilities		$ 7,253	$ 7,275
[1]	No individual item in “Other” above exceeds 5% of the total other current liabilities

Defined Benefit Pension Plans39

Defined Benefit Pension Plans (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost		$ 126	$ 155	$ 380	$ 466
Interest cost		15	19	43	54
Expected return on plan assets		(25)	(24)	(71)	(69)
Net amortization of transitional obligation	[1]	3	3	9	10
Actuarial loss recognized in current period	[1]	17	24	51	70
Total		$ 136	$ 177	$ 412	$ 531
[1]	Amounts reclassified from accumulated other comprehensive loss.

Defined Benefit Pension Plans40

Defined Benefit Pension Plans (Details Textual) - USD ($)	9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016
Swiss Pension Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plan, Contributions By Employer	$ 518,000	$ 419,000

Basic and Diluted Net Income 41

Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016
Numerator:
Net income (loss)	$ 1,173	$ (1,778)	$ (2,001)	$ (11,962)
Weighted average common shares and denominator for basic calculation:
Weighted average common shares outstanding	41,131	40,501	40,960	40,242
Less: Unvested restricted stock	21	15	21	15
Denominator for basic and diluted calculation	41,110	40,486	40,939	40,227
Effect of dilutive shares:
Denominator for diluted calculation	42,104	40,486	40,939	40,227
Net income (loss) per share - basic	$ 0.03	$ (0.04)	$ (0.05)	$ (0.30)
Net income (loss) per share - diluted	$ 0.03	$ (0.04)	$ (0.05)	$ (0.30)
Employee Stock Option [Member]
Effect of dilutive shares:
Weighted Average Number Diluted Shares Outstanding Adjustment	837	0	0	0
Restricted Stock [Member]
Effect of dilutive shares:
Weighted Average Number Diluted Shares Outstanding Adjustment	157	0	0	0

Basic and Diluted Net Income 42

Basic and Diluted Net Income (Loss) Per Share (Details 1) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	1,545	2,194	2,656	2,985
Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	1,545	2,134	2,497	2,937
Restricted Stock Units (RSUs) [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0	60	159	48

Geographic and Product Data (De

Geographic and Product Data (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016
Geographic And Sales [Line Items]
Net sales	$ 23,473	$ 20,052	$ 65,759	$ 60,295
Japan [Member]
Geographic And Sales [Line Items]
Net sales	4,633	4,029	12,849	12,258
China [Member]
Geographic And Sales [Line Items]
Net sales	7,164	4,254	17,489	11,749
United States [Member]
Geographic And Sales [Line Items]
Net sales	1,896	2,419	5,946	7,355
Other [Member]
Geographic And Sales [Line Items]
Net sales	$ 9,780	$ 9,350	$ 29,475	$ 28,933

Geographic and Product Data (44

Geographic and Product Data (Details 1) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016
Product Information [Line Items]
Net sales	$ 23,473	$ 20,052	$ 65,759	$ 60,295
ICLs [Member]
Product Information [Line Items]
Net sales	18,110	14,801	49,698	43,389
IOLs [Member]
Product Information [Line Items]
Net sales	3,892	4,649	12,875	14,783
Other surgical products [Member]
Product Information [Line Items]
Net sales	$ 1,471	$ 602	$ 3,186	$ 2,123

Geographic and Product Data (45

Geographic and Product Data (Details Textual)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016	Dec. 30, 2016
Geographic and Product Data [Line Items]
Disclosure on Geographic Areas, Description of Revenue from External Customers			The Company markets and sells its products in over 60 countries and conducts its manufacturing in the United States. Other than China, Japan, and the United States, the Company does not conduct business in any country in which its sales exceed 10% of worldwide consolidated sales.
Number of Countries in which Entity Operates	60		60
Sales Exceed Percentage			10.00%
Customer One [Member] | Accounts Receivable [Member]
Geographic and Product Data [Line Items]
Concentration Risk, Percentage		21.00%	26.00%
Customer One [Member] | Sales Revenue, Net [Member]
Geographic and Product Data [Line Items]
Concentration Risk, Percentage	31.00%
Customer Two [Member] | Accounts Receivable [Member]
Geographic and Product Data [Line Items]
Concentration Risk, Percentage				19.00%	22.00%
Customer Two [Member] | Sales Revenue, Net [Member]
Geographic and Product Data [Line Items]
Concentration Risk, Percentage			27.00%

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016
Schedule of Employee Service Share-based Compensation [Line Items]
Share-based Compensation	$ 807	$ 386	$ 2,185	$ 8,143
Employee stock options [Member]
Schedule of Employee Service Share-based Compensation [Line Items]
Share-based Compensation	443	208	1,204	5,257
Restricted stock [Member]
Schedule of Employee Service Share-based Compensation [Line Items]
Share-based Compensation	50	32	136	259
Restricted stock units [Member]
Schedule of Employee Service Share-based Compensation [Line Items]
Share-based Compensation	314	146	845	2,569
Nonemployee stock options [Member]
Schedule of Employee Service Share-based Compensation [Line Items]
Share-based Compensation	$ 0	$ 0	$ 0	$ 58

Stock-Based Compensation (Det47

Stock-Based Compensation (Details 1) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016
Schedule of Employee Service Share-based Compensation [Line Items]
Total stock compensation expense	$ 807	$ 386	$ 2,185	$ 8,143
Amounts capitalized as part of inventory	107	39	269	227
Total	914	425	2,454	8,370
Cost of Sales [Member]
Schedule of Employee Service Share-based Compensation [Line Items]
Total stock compensation expense	2	0	6	560
General and administrative [Member]
Schedule of Employee Service Share-based Compensation [Line Items]
Total stock compensation expense	377	248	1,035	3,936
Marketing and selling [Member]
Schedule of Employee Service Share-based Compensation [Line Items]
Total stock compensation expense	214	72	558	1,544
Research and development [Member]
Schedule of Employee Service Share-based Compensation [Line Items]
Total stock compensation expense	$ 214	$ 66	$ 586	$ 2,103

Stock-Based Compensation (Det48

Stock-Based Compensation (Details 2)	3 Months Ended		9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016
Schedule of Employee Service Share-based Compensation [Line Items]
Expected dividend yield	0.00%	0.00%	0.00%	0.00%
Expected volatility	57.00%	57.00%	57.00%	57.00%
Risk-free interest rate	1.83%	1.19%	1.95%	1.34%
Expected term (in years)	5 years 8 months 1 day	5 years 6 months 25 days	5 years 8 months 1 day	5 years 6 months 25 days

Stock-Based Compensation (Det49

Stock-Based Compensation (Details 3) - Employee Stock Option [Member] shares in Thousands	9 Months Ended
	Sep. 29, 2017shares
Schedule of Employee Service Share-based Compensation [Line Items]
Options, Outstanding at December 30, 2016	3,502
Options, Granted, Shares	829
Options, Exercised, Shares	(334)
Options, Forfeited or expired, Shares	(170)
Options, Outstanding at September 29, 2017	3,827
Options, Exercisable at September 29, 2017	2,752

Stock-Based Compensation (Det50

Stock-Based Compensation (Details 4) shares in Thousands	9 Months Ended
	Sep. 29, 2017shares
Restricted Stock [Member]
Outstanding at December 30, 2016	23
Granted, (In Shares)	21
Vested (In shares)	(23)
Forfeited (In shares)	0
Outstanding at September 29, 2017	21
Restricted Stock Units (RSUs) [Member]
Outstanding at December 30, 2016	274
Granted, (In Shares)	291
Vested (In shares)	(93)
Forfeited (In shares)	(34)
Outstanding at September 29, 2017	438

Stock-Based Compensation (Det51

Stock-Based Compensation (Details Textual) - $ / shares	9 Months Ended
	Sep. 29, 2017	Dec. 30, 2016
Schedule of Employee Service Share-based Compensation [Line Items]
Estimated Forfeiture Rate	11.30%
Restricted Stock [Member]
Schedule of Employee Service Share-based Compensation [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested	21,000	23,000
Omnibus Plan [Member]
Schedule of Employee Service Share-based Compensation [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding	3,826,956
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	10 years
Omnibus Plan [Member] | Maximum [Member]
Schedule of Employee Service Share-based Compensation [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Beginning Balance	$ 17.62
Omnibus Plan [Member] | Minimum [Member]
Schedule of Employee Service Share-based Compensation [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Beginning Balance	$ 0.95
Omnibus Plan [Member] | Restricted Stock [Member]
Schedule of Employee Service Share-based Compensation [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	1,273,420
Omnibus Plan [Member] | Restricted Stock And Restricted Stock Units [Member]
Schedule of Employee Service Share-based Compensation [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested	438,039

Income Taxes (Details Textual)

Income Taxes (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016
Income Taxes [Line Items]
Income Tax Expense (Benefit)	$ 409	$ 71	$ 697	$ (1,664)

Commitments and Contingencies (

Commitments and Contingencies (Details Textual)	Jun. 12, 2014USD ($)	Jan. 31, 2017USD ($)	Jan. 30, 2017USD ($)	Sep. 29, 2017USD ($)	Oct. 23, 2017USD ($)	Sep. 29, 2017JPY (¥)	Sep. 29, 2017CHF (SFr)	Dec. 30, 2016USD ($)	Dec. 30, 2016JPY (¥)	Nov. 21, 2016JPY (¥)	Sep. 30, 2016USD ($)
Line of Credit Facility, Maximum Borrowing Capacity | ¥										¥ 500,000,000
Line of Credit, Current				$ 4,442,000		¥ 500,000,000		$ 4,283,000	¥ 500,000,000
Line of Credit Facility, Current Borrowing Capacity				$ 1,000,000			SFr 1,000,000
Interest Rate Increase In Case Of Default				14.00%
Percentage Of Commission On Outstanding Notes Payable				0.25%
Payments to Acquire Equipment on Lease				$ 737,456
Loss Contingency, Accrual, Current				7,000,000				0			$ 0
Loss Contingency, Receivable, Current				7,000,000				0			$ 0
Subsequent Event [Member]
Loss Contingency, Accrual, Current					$ 7,000,000
lease schedule 009R [Member]
Payments to Acquire Equipment on Lease				$ 1,310,609
Sale Leaseback Transaction Net Proceeds Expiration Term		24 months
lease schedule 008R [Member]
Payments to Acquire Equipment on Lease	$ 964,612
Sale Leaseback Transaction Net Proceeds Expiration Term	36 months
Lease Line Of Credit [Member]
Line of Credit Facility, Maximum Borrowing Capacity			$ 2,000,000
Line of Credit Facility, Current Borrowing Capacity		$ 1,957,000
Hardware Equipment [Member] | lease schedule 008R [Member]
Sale Leaseback Transaction, Imputed Interest Rate Term	2.81% per $1
Hardware Equipment [Member] | Lease Line Of Credit [Member]
Sale Leaseback Transaction, Imputed Interest Rate Term		3.94% per $1	3.94% per $1
Non-Hardware Equipment [Member] | lease schedule 008R [Member]
Sale Leaseback Transaction, Imputed Interest Rate Term	3.12% per $1
Non-Hardware Equipment [Member] | Lease Line Of Credit [Member]
Sale Leaseback Transaction, Imputed Interest Rate Term		4.75% per $1	4.75% per $1
Mizuho Bank [Member]
Line of Credit Facility, Interest Rate Description				(approximately 0.12% as of September 29, 2017) plus a 0.50% spread, and may be renewed annually (the current line expires on November 21, 2017).
Foreign Exchange [Member]
Line of Credit, Current				$ 4,400,000				$ 4,300,000

Reclassifications (Details Text

Reclassifications (Details Textual)	9 Months Ended
	Sep. 30, 2016USD ($)
Prior Period Reclassification Adjustment	$ 65,000