Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 25, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | SPECTRANETICS CORP | |
Entity Central Index Key | 789,132 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 42,810,417 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 67,494 | $ 84,594 |
Trade accounts receivable, less allowance for doubtful accounts and sales returns of $1,786 and $1,906, respectively | 44,204 | 43,359 |
Inventories, net | 26,315 | 25,155 |
Prepaid expenses and other current assets | 5,951 | 5,171 |
Total current assets | 143,964 | 158,279 |
Property and equipment, net | 44,761 | 44,719 |
Goodwill | 152,616 | 152,616 |
Other intangible assets, net | 107,253 | 110,456 |
Other assets | 1,953 | 1,929 |
Total assets | 450,547 | 467,999 |
Current liabilities: | ||
Borrowings under revolving line of credit | 19,234 | 24,232 |
Accounts payable | 4,390 | 4,150 |
Accrued liabilities | 32,768 | 33,676 |
Deferred revenue | 1,488 | 1,621 |
Total current liabilities | 57,880 | 63,679 |
Convertible senior notes, net of debt issuance costs | 224,328 | 224,076 |
Term loan, net of debt issuance costs | 59,611 | 59,601 |
Accrued liabilities, net of current portion | 1,743 | 1,759 |
Deferred income taxes | 2,027 | 1,915 |
Total liabilities | $ 345,589 | $ 351,030 |
Commitments and contingencies (Note 9) | ||
Stockholders’ equity: | ||
Preferred stock, $.001 par value; authorized 5,000,000 shares; none issued | $ 0 | $ 0 |
Common stock, $.001 par value; authorized 120,000,000 shares; issued and outstanding 42,796,266 and 42,659,234 shares, respectively | 43 | 42 |
Additional paid-in capital | 318,470 | 313,442 |
Accumulated other comprehensive loss | (1,659) | (1,910) |
Accumulated deficit | (211,896) | (194,605) |
Total stockholders’ equity | 104,958 | 116,969 |
Total liabilities and stockholders’ equity | $ 450,547 | $ 467,999 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Trade accounts receivable, less allowance for doubtful accounts and sales returns | $ 1,786 | $ 1,906 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 120,000,000 | 120,000,000 |
Common stock, shares issued | 42,796,266 | 2,659,234 |
Common stock, shares outstanding | 42,796,266 | 2,659,234 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Revenue | $ 62,884 | $ 57,422 |
Cost of products sold | 16,082 | 14,802 |
Amortization of acquired inventory step-up | 0 | 251 |
Gross profit | 46,802 | 42,369 |
Operating expenses: | ||
Selling, general and administrative | 40,789 | 36,942 |
Research, development and other technology | 16,337 | 15,261 |
Medical device excise tax | 0 | 806 |
Acquisition transaction, integration and legal costs | 292 | 10,391 |
Intangible asset amortization | 3,203 | 3,170 |
Contingent consideration expense | 100 | 1,024 |
Total operating expenses | 60,721 | 67,594 |
Operating loss | (13,919) | (25,225) |
Other expense: | ||
Interest expense | (3,342) | (1,754) |
Foreign currency transaction gain (loss) | 175 | (179) |
Total other expense | (3,167) | (1,933) |
Loss before income tax expense | (17,086) | (27,158) |
Income tax expense | 205 | 147 |
Net loss | $ (17,291) | $ (27,305) |
Net loss per share — | ||
Basic and diluted | $ (0.40) | $ (0.65) |
Other comprehensive income (loss), net of tax | ||
Foreign currency translation adjustments | $ 251 | $ (912) |
Comprehensive loss, net of tax | $ (17,040) | $ (28,217) |
Weighted average common shares outstanding — | ||
Basic and diluted | 42,697,323 | 42,155,844 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (17,291) | $ (27,305) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 6,890 | 6,131 |
Stock-based compensation expense | 3,413 | 3,190 |
Amortization of debt issuance costs | 281 | 244 |
Provision for excess and obsolete inventories | 196 | 167 |
Contingent consideration expense | 100 | 1,024 |
Deferred income taxes | 126 | 95 |
Net change in operating assets and liabilities | (6,159) | (6,007) |
Net cash used in operating activities | (12,444) | (22,461) |
Cash flows from investing activities: | ||
Capital expenditures | (1,226) | (1,780) |
Payments for acquisitions | 0 | (30,000) |
Net cash used in investing activities | (1,226) | (31,780) |
Cash flows from financing activities: | ||
Repayments on line of credit, net | (4,998) | 0 |
Proceeds from the exercise of stock options and employee stock purchase plan | 1,615 | 2,678 |
Payment of contingent consideration | (88) | (143) |
Net cash (used in) provided by financing activities | (3,471) | 2,535 |
Effect of exchange rate changes on cash | 41 | (160) |
Net decrease in cash and cash equivalents | (17,100) | (51,866) |
Cash and cash equivalents at beginning of period | 84,594 | 95,505 |
Cash and cash equivalents at end of period | 67,494 | 43,639 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 1,421 | 9 |
Cash paid for income taxes | $ 194 | $ 185 |
General
General | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | GENERAL The accompanying condensed consolidated financial statements include the accounts of The Spectranetics Corporation, a Delaware corporation, and its wholly-owned subsidiaries. These entities are collectively referred to as the “Company.” All intercompany balances and transactions have been eliminated in consolidation. The Company develops, manufactures, markets, and distributes medical devices used in minimally invasive procedures within the cardiovascular system. The Company’s products are available in over 65 countries and are used to cross, prepare, and treat arterial blockages in the legs and heart and to remove pacemaker and defibrillator cardiac leads. In June 2014, the Company acquired AngioScore, Inc., a leading developer, manufacturer and marketer of cardiovascular, specialty balloon catheters, and in January 2015, the Company acquired the Stellarex™ drug-coated balloon (“DCB”) assets from Covidien LP. The Company prepares its condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Management must make certain estimates, judgments, and assumptions based upon the information available. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the periods presented. Significant items subject to such estimates and assumptions include the carrying amount of property and equipment, intangible assets and goodwill, valuation allowances and reserves for receivables, inventories, deferred income tax assets, contingent consideration liabilities for acquisitions, stock-based compensation expense, estimated clinical trial expenses, accrued estimates for incurred but not reported claims under partially self-insured employee health benefit programs, and loss contingencies, including those related to litigation. Actual results could differ from those estimates. The information included in the accompanying condensed consolidated interim financial statements is unaudited and should be read with the audited financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 . In the opinion of management, all adjustments necessary for a fair presentation of the assets, liabilities and results of operations for the interim periods presented have been reflected herein and are of a normal, recurring nature. The results of operations for interim periods are not necessarily indicative of the results to be expected for the entire year. Certain prior period amounts have been reclassified to conform to the current period presentation. Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . ASU 2016-09 simplifies several aspects related to the accounting for share-based payment transactions, including the accounting for income taxes, statutory tax withholding requirements and classification on the statement of cash flows. For public entities, ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. The Company is in the process of determining the method of adoption and assessing the impact of ASU 2016-09 on its results of operations, financial position, and consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which requires a lessee to recognize on its balance sheet the assets and liabilities for the rights and obligations created by leases with a lease term of more than twelve months. Leases will continue to be classified as either financing or operating, with classification affecting the recognition, measurement and presentation of expenses and cash flows arising from a lease. For public entities, ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and requires a modified retrospective approach to adoption for lessees related to capital and operating leases existing at, or entered into after, the earliest comparative period presented in the financial statements. Early adoption is permitted. The Company is in the process of determining the method of adoption and assessing the impact of ASU 2016-02 on its results of operations, financial position, and consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which will replace most existing revenue recognition guidance in U.S. GAAP. The core principle of ASU 2014-09 is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. To achieve this core principle, ASU 2014-09 contains a five-step model that includes identifying the contract with a customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations, and recognizing revenue when (or as) an entity satisfies a performance obligation. ASU 2014-09 requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , which deferred the effective date of ASU 2014-09 for all entities by one year. As a result, ASU 2014-09 is now effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017 and allows for both retrospective and prospective methods of adoption. The Company is in the process of determining the method and date of adoption and assessing the impact of ASU 2014-09 on its results of operations, financial position, and consolidated financial statements. The Company has considered all other recently issued accounting pronouncements and does not believe they are of significance, or potential significance, to the Company. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | DEBT The following table summarizes our total gross outstanding debt as of March 31, 2016 and December 31, 2015 and the maturity dates of our borrowing arrangements: As of (amounts in thousands) March 31, 2016 December 31, 2015 Maturity Date Weighted Average Interest Rate Convertible Senior Notes $ 230,000 $ 230,000 June 1, 2034 2.625% Term Loan Facility 60,000 60,000 December 7, 2020 (1) Revolving Loan Facility 19,234 24,232 December 7, 2020 (1) Total $ 309,234 $ 314,232 (1) The interest rates on the Term Loan Facility and Revolving Loan Facility are described below. Convertible Notes On June 3, 2014, the Company sold $230 million aggregate principal amount of 2.625% Convertible Senior Notes due 2034 (the “Notes”) under an underwriting agreement dated May 28, 2014. Interest is paid semi-annually in arrears on December 1 and June 1 of each year, commencing December 1, 2014. The Notes mature on June 1, 2034, unless earlier converted, redeemed, or repurchased in accordance with the terms of the Notes. The initial conversion rate of the Notes is 31.9020 shares of the Company’s common stock per $1,000 principal amount of Notes (which is equivalent to an initial conversion price of approximately $31.35 per share). The conversion rate is subject to adjustment upon the occurrence of certain events specified in the indenture governing the Notes. Holders may surrender their Notes for conversion at any time prior to the close of business on the second scheduled trading day immediately preceding the stated maturity date. On or after June 5, 2018 and prior to June 5, 2021, the Company may redeem any or all of the Notes in cash if the closing price of the Company’s common stock exceeds 130% of the conversion price then in effect for a specified number of days, and on or after June 5, 2021, the Company may redeem the Notes without any such condition. Holders of the Notes may require the Company to repurchase all or a portion of their Notes on each of June 5, 2021, June 5, 2024 and June 5, 2029, or following a fundamental change (as defined in the indenture governing the Notes), in each case, at a repurchase price in cash equal to 100% of the principal amount of the Notes being repurchased plus accrued and unpaid interest to, but excluding, the date of repurchase. The Notes are subject to customary events of default, which may result in the acceleration of the maturity of the Notes. The Notes are the Company’s senior unsecured obligations and rank senior in right of payment to any of the Company’s indebtedness that is expressly subordinated in right of payment to the Notes, rank equally in right of payment with any of the Company’s unsecured indebtedness that is not so subordinated, are effectively junior in right of payment to any of the Company’s secured indebtedness to the extent of the value of the assets securing such indebtedness and are structurally subordinated to all indebtedness and other liabilities of the Company’s subsidiaries. The Company received $222.5 million from the issuance of the Notes, net of $7.5 million of debt issuance costs incurred. The debt issuance costs are being amortized over a seven year period using the effective interest method. The Company used all of the net proceeds to fund the acquisition of AngioScore. Term Loan Facility and Revolving Loan Facility On December 7, 2015, the Company entered into a term credit and security agreement (the “Term Loan Credit Agreement”) and a revolving credit and security agreement (the “Revolving Loan Credit Agreement,” and together with the Term Loan Credit Agreement, the “Credit Agreements”) with MidCap Financial Trust and the other lenders party thereto. The Credit Agreements replaced the Credit and Security Agreement (the “Wells Fargo Credit Agreement”) entered into by the Company and Wells Fargo Bank, National Association on February 25, 2011. The Term Loan Credit Agreement provides for a five -year $60 million Term Loan Facility and the Revolving Loan Credit Agreement provides for a five -year $50 million Revolving Loan Facility. The Revolving Loan Facility may be increased to up to $70 million , subject to lender approval. The obligations of the Company under the Credit Agreements are secured by a lien on substantially all of the assets of the Company. The Term Loan Facility bears interest at the LIBOR Rate (as defined in the Term Loan Credit Agreement) plus an applicable margin of 7.50% per annum; provided that the applicable margin will be reduced to 6.50% if the Company’s EBITDA (as defined in the Term Loan Credit Agreement) is equal to or greater than $6 million for a specified prior period and no default or event of default has occurred and is occurring. The Company may prepay all or a portion of the Term Loan Facility, subject to certain conditions and a prepayment fee, as specified in the Credit Agreements. The Term Loan Facility is subject to an exit fee of 4.0% of the amount advanced under the Term Loan Facility. Interest-only payments are due during the first 24 months of the Term Loan Facility, with principal payments beginning thereafter in equal monthly installments until maturity, provided that the Company may postpone making principal payments for an additional 12 months if certain conditions are met and the Administrative Agent and lenders agree to such extension. If the Administrative Agent and lenders do not agree to such extension, the prepayment fee and unearned portion of the exit fee will be waived. The Company may borrow under the Revolving Loan Facility subject to borrowing base limitations, which allow the Company to borrow based on the value of eligible accounts receivable and inventory balances. As of March 31, 2016 , the borrowing base was $38.6 million , based on the Company’s accounts receivable and inventory balances. Amounts drawn under the Revolving Loan Facility bear interest at the LIBOR Rate (as defined in the Revolving Loan Credit Agreement) plus 4.45% per annum, while the undrawn portion is subject to an unused line fee of 0.5% per annum. The Revolving Loan Facility is subject to a minimum balance, such that the Company pays the greater of (i) interest accrued on the actual amount drawn under the Revolving Loan Facility and (ii) interest accrued on 35% of the average borrowing base prior to the first anniversary of the Revolving Loan Facility and 50% of the average borrowing base thereafter. The Company may prepay and re-borrow amounts borrowed under the revolving line of credit without penalty. The Credit Agreements require us to maintain minimum cash and cash equivalents of not less than $10 million and achieve net revenue in excess of certain specified thresholds. These agreements also contain certain restrictive covenants that limit and in some circumstances prohibit, our ability to, among other things, incur additional debt, sell, lease or transfer our assets, pay dividends on our common stock, make capital expenditures and investments, guarantee debt or obligations, create liens, repurchase our common stock, enter into transactions with our affiliates and enter into certain merger, consolidation or other reorganization transactions. The Company was in compliance with its debt covenants as of March 31, 2016 . The Credit Agreements contain customary events of default, including the failure to make required payments, the failure to comply with certain covenants or other agreements, the occurrence of a material adverse change, failure to pay certain other indebtedness and certain events of bankruptcy or insolvency. Upon the occurrence and continuation of an event of default, amounts due under the Credit Agreements may be accelerated. The Company had no events of default as of March 31, 2016 . As of March 31, 2016 , the Term Loan Facility and Revolving Loan Facility had outstanding balances of $60.0 million and $19.2 million , respectively. The interest rate on the Term Loan Facility was 8.00% at March 31, 2016 and the weighted average interest rate on the Revolving Loan Facility was 4.95% at March 31, 2016 . |
Composition of Certain Financia
Composition of Certain Financial Statement Items | 3 Months Ended |
Mar. 31, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Disclosures [Text Block] | COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS Inventories Inventories, net, consisted of the following (in thousands): March 31, December 31, Raw materials $ 9,680 $ 10,838 Work in process 3,488 2,914 Finished goods 13,147 11,403 $ 26,315 $ 25,155 Property and Equipment Property and equipment, net, consisted of the following (in thousands): March 31, 2016 December 31, 2015 Equipment held for rental or loan $ 58,304 $ 55,774 Manufacturing equipment and computers 38,182 37,862 Leasehold improvements 9,213 8,984 Furniture and fixtures 5,008 4,841 Building and improvements 1,306 1,306 Land 270 270 Less: accumulated depreciation (67,522 ) (64,318 ) $ 44,761 $ 44,719 Accrued Liabilities Accrued liabilities consisted of the following (in thousands): March 31, 2016 December 31, 2015 Accrued payroll and employee-related expenses $ 14,764 $ 15,797 Contingent consideration 5,165 5,154 Accrued clinical study expense 3,392 3,868 Accrued interest 2,568 913 Deferred rent 1,476 1,485 Accrued royalties 1,025 1,044 Accrued sales, income and excise taxes 875 1,318 Accrued legal costs 870 713 Other accrued expenses 4,376 5,143 Total accrued liabilities 34,511 35,435 Less: long-term portion (1,743 ) (1,759 ) Accrued liabilities, current portion $ 32,768 $ 33,676 Contingent Consideration The Company recorded contingent liabilities as part of the AngioScore acquisition in June 2014 and the product acquisition from Upstream Peripheral Technologies, Ltd. (“Upstream”) in January 2013. The following table presents changes to the Company’s acquisition-related contingent consideration for the period ending March 31, 2016: Contingent Consideration Liability Beginning balance, January 1, 2016 $ 5,153 Contingent consideration payments (88 ) Contingent consideration accretion expense 100 Ending balance, March 31, 2016 $ 5,165 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | GOODWILL AND INTANGIBLE ASSETS Goodwill is allocated to the Company’s reporting units based on an analysis of both the relative historical and expected benefits. As of March 31, 2016 , the Company’s U.S. Medical and International Medical reporting segments held $130.4 million and $22.2 million , respectively, of allocated goodwill. There were no changes to goodwill during the three months ended March 31, 2016 . Acquired intangible assets consisted of the following (in thousands): March 31, 2016 December 31, 2015 Acquired as part of Stellarex acquisition: (1) In-process research and development $ 13,680 $ 13,680 Technology 9,000 9,000 Trademark and trade names 400 400 Transition services agreement 530 530 Acquired as part of AngioScore acquisition: (2) Technology 73,510 73,510 Customer relationships 23,320 23,320 Trademark and trade names 4,380 4,380 In-process research and development 1,254 1,254 Distributor relationships 1,940 1,940 Non-compete agreements 580 580 Acquired as part of Upstream acquisition (3) Technology 2,172 2,172 Non-compete agreement 200 200 Patents 530 530 Less: accumulated amortization (24,243 ) (21,040 ) $ 107,253 $ 110,456 ___________________ (1) In January 2015, the Company acquired the Stellarex DCB assets, which included, among other things, the intellectual property, machinery and equipment, and inventories used in connection with the Stellarex DCB catheter. (2) In June 2014, the Company completed its acquisition of AngioScore, Inc. (3) In January 2013, the Company acquired certain product lines from Upstream. As part of the acquisition, the Company acquired core technology intangible assets and an intangible asset related to non-compete agreements. There have been no events or circumstances since the last analysis as of December 31, 2015 to indicate that the amount of goodwill may not be recoverable. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION The Company maintains equity plans that provide for the grant of incentive stock options, nonqualified stock options, restricted stock awards, restricted stock units, performance stock units (“PSUs”) and stock appreciation rights. The plans provide that stock options may be granted with exercise prices not less than the fair market value at the date of grant. Options granted through March 31, 2016 generally vest over four years and expire ten years from the date of grant. Restricted stock awards granted to non-employee members of the Board of Directors vest over one year . Restricted stock units granted to certain employees of the Company vest over four years . The Compensation Committee of the Board of Directors approved a grant of PSUs to certain of the Company’s officers in June 2014 and a grant of PSUs to the Company’s new Chief Financial Officer in September 2015 upon the commencement of her employment. PSUs vest based on achieving specified performance measurements over a three -year “cliff” performance period plus an additional one year “cliff” time vesting. Earned PSUs vest 75% upon completion of the three -year performance period and 25% one year after the performance period. The PSUs have payout opportunities of between 0% and 250% . The performance targets include a compounded annual growth rate for revenue over a three-year period and Adjusted EBITDA for the year ended December 31, 2016. At March 31, 2016 , there were 0.9 million shares available for future issuance under the Company’s equity plans, assuming issuance of PSUs at target performance. On March 15, 2016, the Company’s Board of Directors adopted, subject to stockholder approval at the Company’s annual meeting of stockholders in June 2016, The Spectranetics Corporation 2016 Incentive Award Plan (the “2016 Plan”), which authorizes the issuance for award grants of 2,500,000 shares of the Company’s common stock, plus the number of shares of common stock remaining available for future grants under the Company’s Amended and Restated 2006 Incentive Award Plan (the “2006 Plan”) on the date the Company’s stockholders approve the 2016 Plan. Upon approval of the 2016 Plan by the Company’s stockholders, no further awards will be made under the 2006 Plan. Valuation and Expense Information The Company recognized stock-based compensation expense of $3.4 million and $3.2 million for the three months ended March 31, 2016 and 2015 , respectively. This expense consisted of compensation expense related to (1) employee stock options based on the value of share-based payment awards that are ultimately expected to vest during the period, (2) restricted stock awards issued to certain of the Company’s directors, (3) restricted stock units issued to certain of the Company’s employees, (4) PSUs issued to certain of the Company’s officers, and (5) the fair value of shares issued under the Company’s employee stock purchase plan. Stock-based compensation expense is recognized based on awards ultimately expected to vest and is reduced for estimated forfeitures. The Company recognizes compensation expense for non-performance related awards on a straight-line basis over the service period. With respect to the PSUs, the number of shares that vest and are issued to the recipient is based upon the Company’s performance as measured against the specified targets over a three -year period as determined by the Compensation Committee of the Board of Directors. The Company estimates the fair value of the PSUs based on its closing stock price at the time of grant and its estimates of achieving such performance targets and records compensation expense on a graded vesting attribution method, which recognizes compensation cost on a straight-line basis over each separately vesting portion of the award. Over the performance period, the number of shares of common stock that will ultimately vest and be issued and the related compensation expense is adjusted based upon the Company’s estimate of achieving such performance targets. The number of shares delivered to recipients and the related compensation cost recognized as an expense will be based on the actual performance metrics as set forth in the applicable PSU award agreement. The fair value of each share option award is estimated on the date of grant using the Black-Scholes pricing model based on assumptions noted in the following table. The Company’s employee stock options have various restrictions including vesting provisions and restrictions on transfers and hedging, among others, and are often exercised prior to their contractual expiration. Expected volatilities used in the fair value estimate are based on the historical volatility of the Company’s common stock. The Company uses historical data to estimate share option exercises, expected term and employee departure behavior used in the Black-Scholes pricing model. The risk-free rate for periods within the contractual term of the share option is based on the U.S. Treasury yield in effect at the time of grant. The following is a summary of the assumptions used for the stock options granted during the three months ended March 31, 2016 and 2015 , respectively, using the Black-Scholes pricing model: Three Months Ended 2016 2015 Expected life (years) 5.77 5.72 Risk-free interest rate 1.22 % 1.38 % Expected volatility 46.26 % 42.56 % Expected dividend yield — — The weighted average grant date fair value of options granted during the three months ended March 31, 2016 and 2015 was $6.54 and $13.88 , respectively. The following table summarizes stock option activity during the three months ended March 31, 2016 : Shares Weighted Average Exercise Price Weighted Avg. Remaining Contractual Term (In Years) Aggregate Intrinsic Value Options outstanding at January 1, 2016 2,566,088 $ 14.04 Granted 889,664 14.80 Exercised (48,507 ) 9.93 Forfeited (37,132 ) 17.90 Options outstanding at March 31, 2016 3,370,113 $ 14.26 7.15 $ 9,286,121 Options exercisable at March 31, 2016 1,784,813 $ 10.97 5.37 $ 8,899,385 The aggregate intrinsic value in the preceding table represents the total pre-tax intrinsic value based on the Company’s closing stock price of $14.52 as of March 31, 2016 that would have been received by the option holders had all option holders exercised their options as of that date. The total number of shares underlying in-the-money options exercisable as of March 31, 2016 was approximately 1.3 million . The total intrinsic value of options exercised was $0.2 million and $4.9 million during the three months ended March 31, 2016 and 2015 , respectively. The following table summarizes restricted stock award activity during the three months ended March 31, 2016 : Shares Weighted Average Grant Date Fair Value Restricted stock awards outstanding at January 1, 2016 26,463 $ 27.41 Vested/released (2,867 ) 34.89 Restricted stock awards outstanding at March 31, 2016 23,596 $ 26.51 The following table summarizes restricted stock unit activity during the three months ended March 31, 2016 : Shares Weighted Average Grant Date Fair Value Restricted stock units outstanding at January 1, 2016 204,893 $ 24.08 Awarded 190,776 14.98 Forfeited (10,370 ) 23.83 Restricted stock units outstanding at March 31, 2016 385,299 $ 19.58 The following table summarizes PSU activity during the three months ended March 31, 2016 : Shares Weighted Average Grant Date Fair Value Performance stock units outstanding at January 1, 2016 496,656 $ 22.82 Vested/released (18,101 ) 23.43 Forfeited (7,943 ) 23.43 Performance stock units outstanding at March 31, 2016 470,612 $ 22.79 As of March 31, 2016 , there was $19.0 million of total unrecognized compensation expense related to non-vested share-based compensation arrangements granted under the Company’s equity plans, using the Company’s current estimate of performance for the PSUs. Assuming the minimum of 0% and maximum of 250% payout opportunities for the PSUs, the range of total unrecognized compensation expense related to non-vested share-based compensation arrangements granted under the Company’s equity plans was between $16.2 million and $36.7 million as of March 31, 2016 . This expense is based on an assumed future forfeiture rate of approximately 6.68% per year for stock options and restricted stock units for Company employees and is expected to be recognized over a weighted-average period of approximately 2.8 years. Employee Stock Purchase Plan In June 2010, the Company’s stockholders approved The Spectranetics Corporation 2010 Employee Stock Purchase Plan (“ESPP”). The ESPP, as amended in 2012, provides for the sale of up to 700,000 shares of common stock to eligible employees, limited to the lesser of 2,500 shares per employee per six -month period or a fair market value of $25,000 per employee per calendar year. Stock purchased under the ESPP is restricted from sale for one year following the date of purchase. Stock can be purchased from amounts accumulated through payroll deductions during each six -month period. The purchase price is equal to 85% of the lower of the fair market value of the Company’s common stock at the beginning or end of the respective six -month offering period. This discount does not exceed the maximum discount rate permitted for plans of this type under Section 423 of the Internal Revenue Code of 1986, as amended. The ESPP is compensatory for financial reporting purposes. At March 31, 2016 , there were no shares available for future issuance under this plan. On December 9, 2015, the Company’s Board of Directors adopted, subject to stockholder approval at the Company’s annual meeting of stockholders in June 2016, an amendment to the ESPP to increase the number of shares of common stock available for sale under the ESPP by 1,000,000 shares. The amendment is effective as of January 1, 2016, the first day of the current semi-annual offering period under the ESPP. The fair value of the shares offered within the semi-annual purchase periods under the ESPP is determined on the date of grant using the Black-Scholes option-pricing model. The expected term of six months is based upon the offering period of the ESPP. Expected volatility is determined based on the historical volatility from daily share price observations for the Company’s stock covering a period commensurate with the expected term of the ESPP. The risk-free interest rate is based on the six-month U.S. Treasury daily yield rate. The expected dividend yield is based on the Company’s historical practice of electing not to pay dividends to its stockholders. The Company recognized compensation expense related to the ESPP of $0.4 million and $0.2 million for the three months ended March 31, 2016 and 2015 , respectively. |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | NET LOSS PER SHARE Basic net loss per share is computed by dividing net loss by the weighted average number of common shares outstanding (excluding shares of restricted stock). Shares issued during the period and shares reacquired during the period are weighted for the portion of the period they were outstanding. Diluted net loss per share is computed in a manner consistent with that of basic net loss per share, while giving effect to all potentially dilutive common shares outstanding during the period, which include the assumed exercise of stock options and the assumed vesting of restricted stock using the treasury stock method, and the assumed conversion of shares under the Notes using the “if-converted” method. Options to purchase common stock, the vesting of restricted stock and PSUs, and shares issuable upon conversion of the Notes are considered to be potentially dilutive common shares but have been excluded from the calculation of diluted net loss per share as their effect is anti-dilutive for the three months ended March 31, 2016 and 2015 as a result of the net losses incurred in those periods. Therefore, diluted net loss per share was the same as basic net loss per share for the three months ended March 31, 2016 and 2015 . Stock options, restricted stock, PSUs, and shares issuable upon the conversion of the Notes outstanding at March 31, 2016 and 2015 , which are excluded from the computation of diluted net loss per share for the three months ended March 31, 2016 and 2015 , are shown in the table below: Three Months Ended March 31, 2016 2015 Options to purchase common stock 3,370,113 2,529,744 Non-vested restricted stock 408,895 211,685 Non-vested PSUs 470,612 487,158 Shares issuable upon conversion of the Notes 7,337,459 7,337,459 Potentially dilutive common shares 11,587,079 10,566,046 A summary of the net loss per share calculation is shown below for the periods indicated (in thousands, except share and per share amounts): Three Months Ended March 31, 2016 2015 Net loss $ (17,291 ) $ (27,305 ) Common shares outstanding: Historical common shares outstanding at beginning of period 42,632,771 42,034,063 Weighted average common shares issued 64,552 121,781 Weighted average common shares outstanding — basic 42,697,323 42,155,844 Effect of dilution — stock options — — Weighted average common shares outstanding — diluted 42,697,323 42,155,844 Net loss per share — basic and diluted $ (0.40 ) $ (0.65 ) |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting | SEGMENT REPORTING The Company operates in one distinct line of business consisting of developing, manufacturing, marketing, and distributing disposable products and a proprietary excimer laser system to treat certain vascular and coronary conditions. Within this line of business, the Company has two operating segments, which were identified on a geographic basis: (1) U.S. Medical and (2) International Medical. U.S. Medical and International Medical offer substantially the same products and services but operate in different geographic regions, have different distribution networks, and different regulatory environments. The primary performance measure for the operating segments is revenue. Additional information regarding each operating segment is discussed below. U. S. Medical Products offered by this segment include medical devices used in minimally invasive procedures within the cardiovascular system, including fiber-optic devices and non-fiber-optic products (disposables), an excimer laser system (equipment), and the service of the excimer laser system (service). The Company is subject to product approvals from the U.S. Food and Drug Administration (“FDA”) and Health Canada. The Company’s products are used in multiple vascular procedures, including peripheral atherectomy, crossing arterial blockages, coronary atherectomy and thrombectomy, and the removal of cardiac lead wires from patients with pacemakers and cardiac defibrillators. This segment’s customers are primarily located in the United States and Canada. U.S. Medical also includes the corporate headquarters of the Company. All manufacturing, research and development, and corporate administrative functions are performed within this operating segment. For the three months ended March 31, 2016 and 2015 , a portion of research, development and other technology expenses, and general and administrative expenses incurred in the U.S. has been allocated to International Medical based on a percentage of revenue because these expenses support the Company’s ability to generate revenue within the International Medical segment. Manufacturing activities are performed entirely within the U.S. Medical segment. Revenue associated with intersegment product transfers to International Medical was $3.4 million and $2.9 million for the three months ended March 31, 2016 and 2015 , respectively. Revenue is based upon transfer prices, which provide for intersegment profit eliminated upon consolidation. International Medical The International Medical segment has its headquarters in the Netherlands, and serves Europe, the Middle East, Asia Pacific, Latin America, and Puerto Rico. Products offered by this segment are substantially the same as those offered by U.S. Medical, except that the Stellarex DCB products are available for sale in Europe and certain other international markets but are not yet approved for sale in the U.S. The Company is subject to product approvals from various international regulatory bodies. The International Medical segment is engaged primarily in distribution activities, with no manufacturing or product development functions. Certain U.S.-incurred research, development and other technology expenses, and general and administrative expenses have been allocated to International Medical based on a percentage of revenue because these expenses support the Company’s ability to generate revenue within the International Medical segment. Summary financial information relating to operating segment operations is shown below. Intersegment transfers as well as intercompany assets and liabilities are excluded from the information provided (in thousands): Three Months Ended 2016 2015 Revenue: U.S. Medical: Disposable products $ 50,475 $ 45,487 Laser, service, and other 2,507 3,113 Subtotal 52,982 48,600 International Medical: Disposable products 8,533 7,457 Laser, service, and other 1,369 1,365 Subtotal 9,902 8,822 Total revenue $ 62,884 $ 57,422 Three Months Ended 2016 2015 Segment operating loss: U.S. Medical $ (12,328 ) $ (24,926 ) International Medical (1,591 ) (299 ) Total operating loss $ (13,919 ) $ (25,225 ) As of March 31, 2016 December 31, 2015 Segment assets: U.S. Medical $ 412,733 $ 430,956 International Medical 37,814 37,043 Total assets $ 450,547 $ 467,999 For the three months ended March 31, 2016 and 2015 , no individual customer represented 10% or more of consolidated revenue. No individual countries, other than the United States, represented at least 10% of consolidated revenue for the three months ended March 31, 2016 or 2015 . Revenue by Product Line Three Months Ended (in thousands) 2016 2015 Revenue Disposable products: Vascular intervention $ 41,912 $ 36,513 Lead management 17,096 16,431 Total disposable products 59,008 52,944 Laser, service, and other 3,876 4,478 Total revenue $ 62,884 $ 57,422 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company maintains a valuation allowance against substantially all of its deferred tax assets, in excess of its nettable deferred tax liabilities, that it does not consider to meet the more-likely-than-not criteria for recognition. Given its continuing tax losses, the Company does not expect to incur current U.S. federal tax expense or benefit against its pretax income during the year ending December 31, 2016 . The Company does, however, expect to incur current state and foreign tax expense during 2016 . In addition, the Company expects to incur deferred U.S. federal and state tax expense in 2016 , primarily representing an increase in the deferred tax liability related to the difference between tax and book accounting for the portion of its goodwill that is tax-deductible, which is amortized over 15 years for tax purposes but not amortized for book purposes. In assessing the realizability of deferred tax assets (“DTAs”), management considers whether it is more-likely-than-not that some portion or all of the DTAs will not be realized. The Company’s ability to realize the benefit of its DTAs in future periods will depend on the generation of future taxable income during the periods in which temporary differences become deductible. Management considers the Company’s projected future taxable income and tax planning strategies in making this assessment. Because the Company expects to generate losses during the Stellarex development period through 2017, it believes that it will not be generating sufficient taxable income to realize DTAs. The Company will continue to assess the need for a valuation allowance in future periods and does not expect to reduce the valuation allowance against its DTAs until it has a sufficient historical trend of taxable income and can predict future income with a higher degree of certainty. In the event there is a change in circumstances in the future that would affect the utilization of the Company’s DTAs, the tax provision in that period would be adjusted by the amount of the assets then deemed to be realizable. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Litigation The Company is from time to time subject to, and is presently involved in, various pending or threatened legal actions and proceedings, including those that arise in the ordinary course of its business. Such matters are subject to many uncertainties and to outcomes the financial impacts of which are not predictable with assurance and that may not be known for extended periods of time. The Company records a liability in its consolidated financial statements for costs related to claims, settlements, and judgments where management has assessed that a loss is probable and an amount can be reasonably estimated. The Company’s significant legal proceedings are discussed below. The costs associated with such proceedings or other legal proceedings that may be commenced could have a material adverse effect on the Company’s future consolidated results of operations, financial position, or cash flows. For certain cases described herein, management is unable to provide a meaningful estimate of the possible loss, if any, or range of possible loss because, among other reasons, (i) the proceedings are in various stages; (ii) damages may not have been sought; (iii) damages may be determined to be unsupported; (iv) there is uncertainty as to the outcome of pending appeals or motions; (v) there are significant factual issues to be resolved; and/or (vi) there are novel legal issues or unsettled legal theories to be presented or a large number of parties. For these cases, however, the Company does not believe, based on currently available information, that the outcomes of these proceedings will have a material adverse effect on the Company’s financial condition, though the outcomes could be material to the Company’s operating results for any particular period, depending, in part, upon the operating results for such period. TriReme Patent Infringement and Breach of Fiduciary Duty In July 2012, AngioScore sued TriReme Medical, Inc. (“TriReme”), Eitan Konstantino (“Konstantino”), Quattro Vascular Pte, Ltd. (“Quattro”), and QT Vascular Ltd. (“QT Vascular”), in the U.S. District Court for the Northern District of California (the “Court”), alleging patent infringement (the “Northern District of California Action”). In this action, AngioScore, the plaintiff, sought injunctive relief and damages. In June 2014, AngioScore amended its complaint (i) to allege that TriReme’s Chief Executive Officer, Konstantino, who is a former founder, officer, and member of the board of directors of AngioScore, breached his fiduciary duties to AngioScore by developing the Chocolate balloon catheter while he served as a member of the AngioScore board of directors, and (ii) to add claims against the other defendants for aiding and abetting that breach. Trial on the breach of fiduciary duty case occurred in April 2015. In July 2015, the Court ruled in favor of AngioScore, finding that Konstantino breached his fiduciary duties to AngioScore, that TriReme and Quattro aided and abetted that breach, and that QT Vascular is liable for the acts of TriReme and Quattro. In its ruling, the Court found that Konstantino breached his fiduciary duties to AngioScore by developing the Chocolate balloon catheter while serving on the AngioScore board of directors and failing to present that corporate opportunity to AngioScore. Konstantino subsequently launched the product through TriReme, Quattro and QT Vascular. The Court awarded AngioScore $20.034 million against all defendants plus disgorgement from Konstantino of all benefits he accrued from his breach of fiduciary duties, including amounts he received for assigning his intellectual property rights to the Chocolate balloon, a royalty on past and future sales of the Chocolate balloon, and all of his shares and options in QT Vascular. The defendants have filed an appeal of the ruling. Trial on the patent infringement case was held in September 2015. The jury found against AngioScore in the patent infringement case and found that certain of the asserted claims of the patent are invalid. The patent infringement verdict has no impact on the Court’s findings or award of damages in connection with the breach of fiduciary duty claims or the ability of AngioScore to recover fees and costs advanced to Konstantino, as discussed below. The Court entered judgment in both the breach of fiduciary duty case and the patent infringement case in October 2015. TriReme Inventorship In June 2014, TriReme sued AngioScore in the Court seeking to change the inventorship of certain patents owned by AngioScore. TriReme alleged that an Israeli physician, Chaim Lotan, should be named as a co-inventor on three patents owned by AngioScore. Dr. Lotan allegedly assigned any rights he may have had in the three patents to TriReme. AngioScore moved to dismiss this litigation in January 2015, asserting that Dr. Lotan previously assigned any rights he may have had in the patents to AngioScore in 2003. In March 2015, the Court granted AngioScore’s motion to dismiss this case. TriReme appealed the Court’s ruling, and on February 5, 2016, an appellate court reversed the Court’s ruling dismissing the case and remanded the case for further proceedings. Konstantino Indemnification and Advancement of Fees In May 2014, AngioScore sued Konstantino in the Superior Court for the County of Alameda, State of California, seeking a declaratory judgment that AngioScore owes no indemnification obligations to Konstantino under the indemnification agreement between AngioScore and Konstantino (the “AngioScore Indemnification Agreement”) resulting from AngioScore’s claim that Konstantino breached his fiduciary duties to AngioScore while serving as a member of the board of directors of AngioScore (the “Alameda Action”). In November 2014, the court stayed the Alameda Action pending the outcome of the Northern District of California Action. In May 2014, Konstantino sued AngioScore in the Delaware Court of Chancery (the “Delaware Action”) seeking a ruling that, under the AngioScore Indemnification Agreement, AngioScore must indemnify and advance Konstantino’s attorneys’ fees and costs related to the defense of the breach of fiduciary duty claims in the Northern District of California Action and the Alameda Action and his pursuit of the Delaware Action for advancement of fees. In June 2014, AngioScore filed counter-claims against Konstantino for violating the AngioScore Indemnification Agreement, which requires, in part, that he cooperate in identifying other sources of advancement, and AngioScore filed a third-party complaint against TriReme, Quattro, and QT Vascular seeking contribution from the defendant companies for amounts advanced to Konstantino. Konstantino filed a motion for summary judgment that he is entitled to advancement from AngioScore and, in August 2014, the court granted the motion. In September 2014, AngioScore filed amended counterclaims and an amended third-party complaint that included additional defendant TriReme Singapore. The defendant companies filed a motion to dismiss the amended third-party complaint on the grounds that it failed to state a claim and the court does not have jurisdiction over three of the defendant companies that were incorporated in Singapore. In October 2015, the court denied the defendant companies’ motion to dismiss, and the Company filed a motion for summary judgment against the defendant companies seeking reimbursement and contribution of fees the Company advanced to Konstantino. In November 2015, the court granted in part the Company’s motion and ordered that TriReme is liable for 50% of advanced fees and costs, and must pay all fees and costs to be advanced moving forward until such fees and costs equal the fees and costs paid by AngioScore. Thereafter, the fees and costs will be advanced 50% by TriReme and 50% by AngioScore. The Company cannot at this time determine the likelihood of any outcome and, as of March 31, 2016, has no amounts accrued for potential damages. During the three months ended March 31, 2016, the Company incurred $0.2 million in legal fees associated with these matters. These expenses are included within the “Acquisition transaction, integration and legal costs” line of the condensed consolidated statements of operations and comprehensive loss. Shareholder Litigation On August 27, 2015, a person purporting to represent a class of persons who purchased securities of the Company between February 19, 2015 and July 23, 2015 filed a lawsuit against the Company and certain of its officers in the United States District Court for the District of Colorado. The lawsuit asserts claims under Sections 10(b) and 20 of the Securities Exchange Act of 1934, alleging that certain of the Company’s public statements concerning its projected revenue for 2015 were false and misleading. On December 18, 2015, the court appointed lead plaintiff and lead counsel. On March 1, 2016, plaintiffs filed an amended complaint, including additional allegations challenging certain statements in addition to those concerning the Company’s projected revenue for 2015. The class period in the amended complaint runs from February 27, 2014 to July 23, 2015. The Company believes that the lawsuit is without merit and intends to defend itself vigorously. The Company cannot at this time determine the likelihood of any outcome or whether the impact will be material and, as of March 31, 2016 , has no amounts accrued for potential damages in this case. An adverse outcome could have a material adverse effect on the Company’s business, results of operations or financial condition. Other The Company is involved in other legal proceedings in the normal course of business and does not expect them to have a material adverse effect on its business. |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | The following table summarizes our total gross outstanding debt as of March 31, 2016 and December 31, 2015 and the maturity dates of our borrowing arrangements: As of (amounts in thousands) March 31, 2016 December 31, 2015 Maturity Date Weighted Average Interest Rate Convertible Senior Notes $ 230,000 $ 230,000 June 1, 2034 2.625% Term Loan Facility 60,000 60,000 December 7, 2020 (1) Revolving Loan Facility 19,234 24,232 December 7, 2020 (1) Total $ 309,234 $ 314,232 |
Composition of Certain Financ16
Composition of Certain Financial Statement Items (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Inventories | Inventories, net, consisted of the following (in thousands): March 31, December 31, Raw materials $ 9,680 $ 10,838 Work in process 3,488 2,914 Finished goods 13,147 11,403 $ 26,315 $ 25,155 |
Schedule of Property and Equipment | Property and equipment, net, consisted of the following (in thousands): March 31, 2016 December 31, 2015 Equipment held for rental or loan $ 58,304 $ 55,774 Manufacturing equipment and computers 38,182 37,862 Leasehold improvements 9,213 8,984 Furniture and fixtures 5,008 4,841 Building and improvements 1,306 1,306 Land 270 270 Less: accumulated depreciation (67,522 ) (64,318 ) $ 44,761 $ 44,719 |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following (in thousands): March 31, 2016 December 31, 2015 Accrued payroll and employee-related expenses $ 14,764 $ 15,797 Contingent consideration 5,165 5,154 Accrued clinical study expense 3,392 3,868 Accrued interest 2,568 913 Deferred rent 1,476 1,485 Accrued royalties 1,025 1,044 Accrued sales, income and excise taxes 875 1,318 Accrued legal costs 870 713 Other accrued expenses 4,376 5,143 Total accrued liabilities 34,511 35,435 Less: long-term portion (1,743 ) (1,759 ) Accrued liabilities, current portion $ 32,768 $ 33,676 |
Schedule of Changes in Contingent Consideration | The following table presents changes to the Company’s acquisition-related contingent consideration for the period ending March 31, 2016: Contingent Consideration Liability Beginning balance, January 1, 2016 $ 5,153 Contingent consideration payments (88 ) Contingent consideration accretion expense 100 Ending balance, March 31, 2016 $ 5,165 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Acquired Intangible Assets | Acquired intangible assets consisted of the following (in thousands): March 31, 2016 December 31, 2015 Acquired as part of Stellarex acquisition: (1) In-process research and development $ 13,680 $ 13,680 Technology 9,000 9,000 Trademark and trade names 400 400 Transition services agreement 530 530 Acquired as part of AngioScore acquisition: (2) Technology 73,510 73,510 Customer relationships 23,320 23,320 Trademark and trade names 4,380 4,380 In-process research and development 1,254 1,254 Distributor relationships 1,940 1,940 Non-compete agreements 580 580 Acquired as part of Upstream acquisition (3) Technology 2,172 2,172 Non-compete agreement 200 200 Patents 530 530 Less: accumulated amortization (24,243 ) (21,040 ) $ 107,253 $ 110,456 ___________________ (1) In January 2015, the Company acquired the Stellarex DCB assets, which included, among other things, the intellectual property, machinery and equipment, and inventories used in connection with the Stellarex DCB catheter. (2) In June 2014, the Company completed its acquisition of AngioScore, Inc. (3) In January 2013, the Company acquired certain product lines from Upstream. As part of the acquisition, the Company acquired core technology intangible assets and an intangible asset related to non-compete agreements. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Options, Valuation Assumptions | The following is a summary of the assumptions used for the stock options granted during the three months ended March 31, 2016 and 2015 , respectively, using the Black-Scholes pricing model: Three Months Ended 2016 2015 Expected life (years) 5.77 5.72 Risk-free interest rate 1.22 % 1.38 % Expected volatility 46.26 % 42.56 % Expected dividend yield — — |
Summary of Stock Options, Activity | The following table summarizes stock option activity during the three months ended March 31, 2016 : Shares Weighted Average Exercise Price Weighted Avg. Remaining Contractual Term (In Years) Aggregate Intrinsic Value Options outstanding at January 1, 2016 2,566,088 $ 14.04 Granted 889,664 14.80 Exercised (48,507 ) 9.93 Forfeited (37,132 ) 17.90 Options outstanding at March 31, 2016 3,370,113 $ 14.26 7.15 $ 9,286,121 Options exercisable at March 31, 2016 1,784,813 $ 10.97 5.37 $ 8,899,385 |
Summary of Restricted Stock and Restricted Stock Unit Activity | The following table summarizes restricted stock award activity during the three months ended March 31, 2016 : Shares Weighted Average Grant Date Fair Value Restricted stock awards outstanding at January 1, 2016 26,463 $ 27.41 Vested/released (2,867 ) 34.89 Restricted stock awards outstanding at March 31, 2016 23,596 $ 26.51 The following table summarizes restricted stock unit activity during the three months ended March 31, 2016 : Shares Weighted Average Grant Date Fair Value Restricted stock units outstanding at January 1, 2016 204,893 $ 24.08 Awarded 190,776 14.98 Forfeited (10,370 ) 23.83 Restricted stock units outstanding at March 31, 2016 385,299 $ 19.58 |
Summary of PSU Activity | The following table summarizes PSU activity during the three months ended March 31, 2016 : Shares Weighted Average Grant Date Fair Value Performance stock units outstanding at January 1, 2016 496,656 $ 22.82 Vested/released (18,101 ) 23.43 Forfeited (7,943 ) 23.43 Performance stock units outstanding at March 31, 2016 470,612 $ 22.79 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Stock options, restricted stock, PSUs, and shares issuable upon the conversion of the Notes outstanding at March 31, 2016 and 2015 , which are excluded from the computation of diluted net loss per share for the three months ended March 31, 2016 and 2015 , are shown in the table below: Three Months Ended March 31, 2016 2015 Options to purchase common stock 3,370,113 2,529,744 Non-vested restricted stock 408,895 211,685 Non-vested PSUs 470,612 487,158 Shares issuable upon conversion of the Notes 7,337,459 7,337,459 Potentially dilutive common shares 11,587,079 10,566,046 |
Schedule of Earnings Per Share, Basic and Diluted | A summary of the net loss per share calculation is shown below for the periods indicated (in thousands, except share and per share amounts): Three Months Ended March 31, 2016 2015 Net loss $ (17,291 ) $ (27,305 ) Common shares outstanding: Historical common shares outstanding at beginning of period 42,632,771 42,034,063 Weighted average common shares issued 64,552 121,781 Weighted average common shares outstanding — basic 42,697,323 42,155,844 Effect of dilution — stock options — — Weighted average common shares outstanding — diluted 42,697,323 42,155,844 Net loss per share — basic and diluted $ (0.40 ) $ (0.65 ) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Reporting Segments | Summary financial information relating to operating segment operations is shown below. Intersegment transfers as well as intercompany assets and liabilities are excluded from the information provided (in thousands): Three Months Ended 2016 2015 Revenue: U.S. Medical: Disposable products $ 50,475 $ 45,487 Laser, service, and other 2,507 3,113 Subtotal 52,982 48,600 International Medical: Disposable products 8,533 7,457 Laser, service, and other 1,369 1,365 Subtotal 9,902 8,822 Total revenue $ 62,884 $ 57,422 |
Schedule of Operating Profit (Loss) by Reporting Segments | Three Months Ended 2016 2015 Segment operating loss: U.S. Medical $ (12,328 ) $ (24,926 ) International Medical (1,591 ) (299 ) Total operating loss $ (13,919 ) $ (25,225 ) |
Schedule of Assets by Reporting Segment | As of March 31, 2016 December 31, 2015 Segment assets: U.S. Medical $ 412,733 $ 430,956 International Medical 37,814 37,043 Total assets $ 450,547 $ 467,999 |
Schedule of Revenue from External Customers by Products and Services | Revenue by Product Line Three Months Ended (in thousands) 2016 2015 Revenue Disposable products: Vascular intervention $ 41,912 $ 36,513 Lead management 17,096 16,431 Total disposable products 59,008 52,944 Laser, service, and other 3,876 4,478 Total revenue $ 62,884 $ 57,422 |
General (Details) (Details)
General (Details) (Details) | Mar. 31, 2016country |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of Countries in which Entity Operates | 65 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 03, 2014 | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | |||
Convertible Senior Notes | $ 230,000 | $ 230,000 | |
Line of credit, borrowing capacity | 38,600 | ||
Revolving Loan Facility, minimum cash and cash equivalents required | 10,000 | ||
Term Loan Facility | 60,000 | 60,000 | |
Revolving Loan Facility | $ 19,234 | $ 24,232 | |
Convertible Notes | |||
Debt Instrument [Line Items] | |||
Convertible Senior Notes | $ 230,000 | ||
Stated interest rate | 2.625% | 2.625% | |
Conversion ratio | 31.9020 | ||
Conversion price | $ 31.35 | ||
Threshold percentage of stock price trigger | 130.00% | ||
Percent of principal amount redeemed | 100.00% | ||
Proceeds from debt, net of issuance costs | $ 222,500 | ||
Debt issuance costs | $ 7,500 | ||
Discount amortization period | 7 years | ||
Term Loan | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 8.00% | ||
Debt instrument, term | 5 years | ||
Debt instrument, face amount | $ 60,000 | ||
Debt Instrument, exit fee | 4.00% | ||
Line of Credit | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 4.95% | ||
Debt instrument, term | 5 years | ||
Line of credit, maximum availability | $ 50,000 | ||
Line of credit, fee percentage on unused portion | 0.50% | ||
Borrowings under revolving line of credit | 35.00% | ||
Percentage of average borrowing base after first anniversary | 50.00% | ||
Minimum | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Debt instrument, EBITDA required to reduce LIBOR margin rate | $ 6,000 | ||
Minimum | Term Loan | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Line of credit, interest rate spread | 6.50% | ||
Maximum | Term Loan | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Line of credit, interest rate spread | 7.50% | ||
Maximum | Line of Credit | |||
Debt Instrument [Line Items] | |||
Line of credit, maximum availability | $ 70,000 | ||
Maximum | Line of Credit | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Line of credit, interest rate spread | 4.45% |
Debt (Schedule of Outstanding D
Debt (Schedule of Outstanding Debt) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2015 | Jun. 03, 2014 | |
Debt Instrument [Line Items] | |||
Convertible Senior Notes | $ 230,000 | $ 230,000 | |
Term Loan Facility | 60,000 | 60,000 | |
Revolving Loan Facility | 19,234 | 24,232 | |
Total | $ 309,234 | $ 314,232 | |
Convertible Notes | |||
Debt Instrument [Line Items] | |||
Convertible Senior Notes | $ 230,000 | ||
Maturity date | Jun. 1, 2034 | ||
Interest rate | 2.625% | 2.625% | |
Term Loan | |||
Debt Instrument [Line Items] | |||
Maturity date | Dec. 7, 2020 | ||
Interest rate | 8.00% | ||
Line of Credit | |||
Debt Instrument [Line Items] | |||
Maturity date | Dec. 7, 2020 | ||
Interest rate | 4.95% |
Composition of Certain Financ24
Composition of Certain Financial Statement Items (Schedule of Inventories) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Balance Sheet Related Disclosures [Abstract] | ||
Raw materials | $ 9,680 | $ 10,838 |
Work in process | 3,488 | 2,914 |
Finished goods | 13,147 | 11,403 |
Inventories, net | $ 26,315 | $ 25,155 |
Composition of Certain Financ25
Composition of Certain Financial Statement Items (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Less: accumulated depreciation | $ (67,522) | $ (64,318) |
Property and equipment, net | 44,761 | 44,719 |
Equipment held for rental or loan | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 58,304 | 55,774 |
Manufacturing equipment and computers | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 38,182 | 37,862 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 9,213 | 8,984 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 5,008 | 4,841 |
Building and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,306 | 1,306 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 270 | $ 270 |
Composition of Certain Financ26
Composition of Certain Financial Statement Items (Schedule of Accrued Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Accrued Liabilities, Current [Abstract] | ||
Accrued payroll and employee-related expenses | $ 14,764 | $ 15,797 |
Contingent consideration | 5,165 | 5,154 |
Accrued clinical study expense | 3,392 | 3,868 |
Accrued interest | 2,568 | 913 |
Deferred rent | 1,476 | 1,485 |
Accrued royalties | 1,025 | 1,044 |
Accrued sales, income and excise taxes | 875 | 1,318 |
Accrued legal costs | 870 | 713 |
Other accrued expenses | 4,376 | 5,143 |
Total accrued liabilities | 34,511 | 35,435 |
Less: long-term portion | (1,743) | (1,759) |
Accrued liabilities, current portion | $ 32,768 | $ 33,676 |
Composition of Certain Financ27
Composition of Certain Financial Statement Items (Schedule of Changes in Contingent Consideration) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Business Combinations [Abstract] | ||
Beginning balance | $ 5,153 | |
Contingent consideration payments | (88) | |
Contingent consideration accretion expense | 100 | $ 1,024 |
Ending balance | $ 5,165 |
Goodwill and Intangible Asset28
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Goodwill [Roll Forward] | ||
Goodwill | $ 152,616 | $ 152,616 |
U.S. Medical | ||
Goodwill [Roll Forward] | ||
Goodwill | 130,400 | |
International Medical | ||
Goodwill [Roll Forward] | ||
Goodwill | $ 22,200 |
Goodwill and Intangible Asset29
Goodwill and Intangible Assets (Schedule of Acquired Intangible Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Less: accumulated amortization | $ (24,243) | $ (21,040) |
Other intangible assets, net | 107,253 | 110,456 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Patents | 530 | 530 |
AngioScore | Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets | 73,510 | 73,510 |
AngioScore | Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets | 23,320 | 23,320 |
AngioScore | Trademark and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets | 4,380 | 4,380 |
AngioScore | In-process research and development | ||
Finite-Lived Intangible Assets [Line Items] | ||
In-process research and development (“IPR&D”) | 1,254 | 1,254 |
AngioScore | Distributor relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets | 1,940 | 1,940 |
AngioScore | Non-compete agreement | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets | 580 | 580 |
Stellarex | Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets | 9,000 | 9,000 |
Stellarex | Trademark and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets | 400 | 400 |
Stellarex | In-process research and development | ||
Finite-Lived Intangible Assets [Line Items] | ||
In-process research and development (“IPR&D”) | 13,680 | 13,680 |
Stellarex | Transition services agreement | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets | 530 | 530 |
Upstream | Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets | 2,172 | 2,172 |
Upstream | Non-compete agreement | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets | $ 200 | $ 200 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares available for future issuance | 900,000 | |
Allocated share-based compensation expense | $ 3,400,000 | $ 3,200,000 |
Share price | $ 14.52 | |
Unrecognized compensation expense | $ 19,000,000 | |
Estimated forfeiture rate | 6.68% | |
Weighted-average recognition period | 2 years 9 months 18 days | |
Number of shares authorized | 2,500,000 | |
ESPP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares available for future issuance | 0 | |
Number of additional shares authorized | 1,000,000 | |
Allocated share-based compensation expense | $ 400,000 | $ 200,000 |
Number of shares authorized | 700,000 | |
Maximum number of shares per employee | 2,500 | |
Maximum fair value per employee | $ 25,000 | |
Stock purchase holding period | 1 year | |
Employee stock purchase plan purchase period | 6 months | |
Purchase price of common stock, percent | 85.00% | |
Expected term | 6 months | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation expense | $ 16,200,000 | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation expense | $ 36,700,000 | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 4 years | |
Award expiration period | 10 years | |
Weighted average grant date fair value of options | $ 6.54 | $ 13.88 |
In-the-money options exercisable amount | 1,300,000 | |
Total intrinsic value of options exercised | $ 200,000 | $ 4,900,000 |
Expected term | 5 years 9 months 7 days | 5 years 8 months 19 days |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 1 year | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 4 years | |
Performance Stock Units | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Target payout opportunities | 0.00% | |
Performance Stock Units | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Target payout opportunities | 250.00% | |
Performance Stock Units | Vesting after three years | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Award vesting percent | 75.00% | |
Performance Stock Units | Vesting in fourth year | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 1 year | |
Award vesting percent | 25.00% |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Stock Options, Valuation Assumptions) (Details) - Stock Options | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life (years) | 5 years 9 months 7 days | 5 years 8 months 19 days |
Risk-free interest rate | 1.22% | 1.38% |
Expected volatility | 46.26% | 42.56% |
Expected dividend yield | 0.00% | 0.00% |
Stock-Based Compensation (Sum32
Stock-Based Compensation (Summary of Stock Options, Activity) (Details) | 3 Months Ended |
Mar. 31, 2016USD ($)$ / sharesshares | |
Shares | |
Beginning balance (shares) | shares | 2,566,088 |
Granted (shares) | shares | 889,664 |
Exercised (shares) | shares | (48,507) |
Forfeited (shares) | shares | (37,132) |
Ending balance (shares) | shares | 3,370,113 |
Options exercisable (shares) | shares | 1,784,813 |
Weighted Average Exercise Price | |
Beginning balance (in dollars per share) | $ / shares | $ 14.04 |
Granted, weighted average exercise price (in dollars per share) | $ / shares | 14.80 |
Exercised, weighted average exercise price (in dollars per share) | $ / shares | 9.93 |
Forfeited, weighted average exercise price (in dollars per share) | $ / shares | 17.90 |
Ending balance (in dollars per share) | $ / shares | 14.26 |
Options exercisable, weighted average exercise price (in dollars per share) | $ / shares | $ 10.97 |
Options outstanding, weighted average remaining contractual term (in years) | 7 years 1 month 24 days |
Options exercisable, weighted average remaining contractual term (in years) | 5 years 4 months 13 days |
Options outstanding, aggregate intrinsic value | $ | $ 9,286,121 |
Options exercisable, aggregate intrinsic value | $ | $ 8,899,385 |
Stock-Based Compensation (Sum33
Stock-Based Compensation (Summary of Restricted Stock and Restricted Stock Unit Activity) (Details) | 3 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Restricted Stock | |
Shares | |
Beginning balance (shares) | shares | 26,463 |
Vested/released (shares) | shares | (2,867) |
Ending balance (shares) | shares | 23,596 |
Weighted Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 27.41 |
Vested/released (in dollars per share) | $ / shares | 34.89 |
Ending balance (in dollars per share) | $ / shares | $ 26.51 |
Restricted Stock Units (RSUs) | |
Shares | |
Beginning balance (shares) | shares | 204,893 |
Awarded (shares) | shares | 190,776 |
Forfeited (shares) | shares | (10,370) |
Ending balance (shares) | shares | 385,299 |
Weighted Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 24.08 |
Awarded (in dollars per share) | $ / shares | 14.98 |
Forfeited (in dollars per share) | $ / shares | 23.83 |
Ending balance (in dollars per share) | $ / shares | $ 19.58 |
Stock-Based Compensation (Sum34
Stock-Based Compensation (Summary of PSU Activity) (Details) - Performance Stock Units | 3 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Shares | |
Beginning balance (shares) | shares | 496,656 |
Vested/released (shares) | shares | (18,101) |
Forfeited (shares) | shares | (7,943) |
Ending balance (shares) | shares | 470,612 |
Weighted Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 22.82 |
Vested/released (in dollars per share) | $ / shares | 23.43 |
Forfeited (in dollars per share) | $ / shares | 23.43 |
Ending balance (in dollars per share) | $ / shares | $ 22.79 |
Net Loss Per Share (Schedule of
Net Loss Per Share (Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share) (Details) - shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 11,587,079 | 10,566,046 |
Equity Option | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 3,370,113 | 2,529,744 |
Restricted Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 408,895 | 211,685 |
Performance Stock Units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 470,612 | 487,158 |
Convertible Debt Securities | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 7,337,459 | 7,337,459 |
Net Loss Per Share (Schedule 36
Net Loss Per Share (Schedule of Earnings Per Share, Basic and Diluted) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Net loss | $ (17,291) | $ (27,305) |
Common shares outstanding: | ||
Historical common shares outstanding at beginning of period | 42,632,771 | 42,034,063 |
Weighted average common shares issued | 64,552 | 121,781 |
Weighted average common shares outstanding — basic | 42,697,323 | 42,155,844 |
Effect of dilution — stock options | 0 | 0 |
Weighted average common shares outstanding — diluted | 42,697,323 | 42,155,844 |
Net loss per share — basic and diluted | $ (0.40) | $ (0.65) |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) $ in Millions | 3 Months Ended | |||||
Mar. 31, 2016country | Mar. 31, 2016USD ($) | Mar. 31, 2016Segments | Mar. 31, 2016Line_of_Business | Mar. 31, 2016customer | Mar. 31, 2015USD ($)countrySegmentsLine_of_Businesscustomer | |
Segment Reporting Information [Line Items] | ||||||
Number of lines of business | Line_of_Business | 1 | 1 | ||||
Number of reportable segments | Segments | 2 | 2 | ||||
Sales Revenue | Customer Concentration Risk | ||||||
Segment Reporting Information [Line Items] | ||||||
Number of major customers | customer | 0 | 0 | ||||
Sales Revenue | Geographic Concentration Risk | ||||||
Segment Reporting Information [Line Items] | ||||||
Number of major countries | 0 | 0 | 0 | |||
U.S. Medical | ||||||
Segment Reporting Information [Line Items] | ||||||
Intersegment revenue | $ | $ 3.4 | $ 2.9 |
Segment Reporting (Schedule of
Segment Reporting (Schedule of Revenue by Reporting Segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | $ 62,884 | $ 57,422 |
Disposable products | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 59,008 | 52,944 |
U.S. Medical | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 52,982 | 48,600 |
U.S. Medical | Disposable products | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 50,475 | 45,487 |
U.S. Medical | Laser, service, and other | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 2,507 | 3,113 |
International Medical | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 9,902 | 8,822 |
International Medical | Disposable products | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 8,533 | 7,457 |
International Medical | Laser, service, and other | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | $ 1,369 | $ 1,365 |
Segment Reporting (Schedule o39
Segment Reporting (Schedule of Operating Profit (Loss) by Reporting Segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Operating loss | $ (13,919) | $ (25,225) |
U.S. Medical | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Operating loss | (12,328) | (24,926) |
International Medical | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Operating loss | $ (1,591) | $ (299) |
Segment Reporting (Schedule o40
Segment Reporting (Schedule of Assets by Reporting Segment) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 450,547 | $ 467,999 |
U.S. Medical | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 412,733 | 430,956 |
International Medical | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 37,814 | $ 37,043 |
Segment Reporting (Schedule o41
Segment Reporting (Schedule of Revenue from External Customers by Products and Services) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenue from External Customer [Line Items] | ||
Revenue | $ 62,884 | $ 57,422 |
Disposable products | ||
Revenue from External Customer [Line Items] | ||
Revenue | 59,008 | 52,944 |
Laser, service, and other | ||
Revenue from External Customer [Line Items] | ||
Revenue | 3,876 | 4,478 |
Vascular intervention | Disposable products | ||
Revenue from External Customer [Line Items] | ||
Revenue | 41,912 | 36,513 |
Lead management | Disposable products | ||
Revenue from External Customer [Line Items] | ||
Revenue | $ 17,096 | $ 16,431 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Goodwill, amortization period for tax purposes | 15 years |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | Jun. 25, 2014patent | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) |
Loss Contingencies [Line Items] | ||||
Accrued legal costs | $ 870 | $ 713 | ||
Acquisition transaction, integration and legal costs | 292 | $ 10,391 | ||
Trireme Litigation | ||||
Loss Contingencies [Line Items] | ||||
Proceeds from litigation settlement | 20,034 | |||
Accrued legal costs | 0 | |||
Acquisition transaction, integration and legal costs | 200 | |||
US District Court of Northern California | ||||
Loss Contingencies [Line Items] | ||||
Number of patents involved in litigation | patent | 3 | |||
Shareholder Litigation [Member] | ||||
Loss Contingencies [Line Items] | ||||
Accrued legal costs | $ 0 |