Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Dec. 31, 2013 | Jan. 31, 2014 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Dec-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'ABMD | ' |
Entity Registrant Name | 'ABIOMED INC | ' |
Entity Central Index Key | '0000815094 | ' |
Current Fiscal Year End Date | '--03-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 39,818,029 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $22,632 | $9,451 |
Short-term marketable securities | 56,944 | 67,256 |
Accounts receivable, net | 22,958 | 22,946 |
Inventories | 14,819 | 14,930 |
Prepaid expenses and other current assets | 2,376 | 2,022 |
Total current assets | 119,729 | 116,605 |
Long-term marketable securities | 27,784 | 11,406 |
Property and equipment, net | 7,022 | 6,549 |
Goodwill | 38,029 | 35,410 |
Other assets | 801 | 29 |
Total assets | 193,365 | 169,999 |
Current liabilities: | ' | ' |
Accounts payable | 6,066 | 7,696 |
Accrued expenses | 16,015 | 15,162 |
Deferred revenue | 4,354 | 4,198 |
Total current liabilities | 26,435 | 27,056 |
Long-term deferred tax liability | 6,234 | 5,554 |
Other long-term liabilities | 239 | 309 |
Total liabilities | 32,908 | 32,919 |
Commitments and contingencies | ' | ' |
Stockholders' equity: | ' | ' |
Class B Preferred Stock, $.01 par value Authorized - 1,000,000 shares; Issued and outstanding - none | ' | ' |
Common stock, $.01 par value Authorized - 100,000,000 shares; Issued - 40,972,146 shares at December 31, 2013 and 39,788,383 shares at March 31, 2013; Outstanding - 39,765,779 shares at December 31, 2013 and 38,601,384 shares at March 31, 2013 | 409 | 397 |
Additional paid in capital | 431,754 | 414,810 |
Accumulated deficit | -254,532 | -258,261 |
Treasury stock at cost - 1,206,367 shares at December 31, 2013 and 1,186,999 shares at March 31, 2013 | -16,554 | -16,129 |
Accumulated other comprehensive loss | -620 | -3,737 |
Total stockholders' equity | 160,457 | 137,080 |
Total liabilities and stockholders' equity | $193,365 | $169,999 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Mar. 31, 2013 |
Class B Preferred Stock, par value | $0.01 | $0.01 |
Class B Preferred Stock, Authorized | 1,000,000 | 1,000,000 |
Class B Preferred Stock, Issued | ' | ' |
Class B Preferred Stock, outstanding | ' | ' |
Common stock, par value | $0.01 | $0.01 |
Common stock, Authorized | 100,000,000 | 100,000,000 |
Common stock, Issued | 40,972,146 | 39,788,383 |
Common stock, Outstanding | 39,765,779 | 38,601,384 |
Treasury stock, shares | 1,206,367 | 1,186,999 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue: | ' | ' | ' | ' |
Product revenue | $46,141 | $38,112 | $133,038 | $114,078 |
Funded research and development | 54 | 138 | 172 | 372 |
Total Revenue | 46,195 | 38,250 | 133,210 | 114,450 |
Costs and expenses: | ' | ' | ' | ' |
Cost of product revenue | 9,458 | 8,130 | 27,208 | 22,770 |
Research and development | 7,779 | 6,259 | 22,787 | 18,825 |
Selling, general and administrative | 24,364 | 20,943 | 78,530 | 60,333 |
Amortization of intangible assets | ' | ' | ' | 111 |
Costs and Expenses, Total | 41,601 | 35,332 | 128,525 | 102,039 |
Income from operations | 4,594 | 2,918 | 4,685 | 12,411 |
Other income: | ' | ' | ' | ' |
Investment income, net | 37 | 1 | 78 | ' |
Other income, net | 20 | 324 | 5 | 311 |
Nonoperating Income (Expense), Total | 57 | 325 | 83 | 311 |
Income before income tax provision | 4,651 | 3,243 | 4,768 | 12,722 |
Income tax provision | 258 | 559 | 1,039 | 1,450 |
Net income | $4,393 | $2,684 | $3,729 | $11,272 |
Basic net income per share | $0.11 | $0.07 | $0.10 | $0.29 |
Basic weighted average shares outstanding | 39,592 | 39,417 | 39,179 | 39,331 |
Diluted net income per share | $0.11 | $0.07 | $0.09 | $0.27 |
Diluted weighted average shares outstanding | 41,726 | 40,865 | 41,315 | 41,418 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Net income | $4,393 | $2,684 | $3,729 | $11,272 |
Other comprehensive income (loss): | ' | ' | ' | ' |
Foreign currency translation gains (losses) | 807 | 1,147 | 3,128 | -580 |
Net unrealized losses on marketable securities | -21 | ' | -11 | ' |
Other comprehensive income (loss) | 786 | 1,147 | 3,117 | -580 |
Comprehensive income | $5,179 | $3,831 | $6,846 | $10,692 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities: | ' | ' |
Net income | $3,729 | $11,272 |
Adjustments required to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 1,863 | 2,086 |
Bad debt expense | 11 | 42 |
Stock-based compensation | 8,367 | 6,899 |
Write-down of inventory | 641 | 891 |
Deferred tax provision | 679 | 545 |
Changes in assets and liabilities: | ' | ' |
Accounts receivable | 123 | 489 |
Inventories | -69 | -4,898 |
Prepaid expenses and other assets | -345 | 359 |
Accounts payable | -1,679 | -286 |
Accrued expenses and other long-term liabilities | 104 | 1,366 |
Deferred revenue | 147 | 76 |
Net cash provided by operating activities | 13,571 | 18,841 |
Investing activities: | ' | ' |
Purchases of marketable securities | -58,330 | -24,252 |
Proceeds from the sale and maturity of marketable securities | 52,264 | 20,500 |
Purchase of other investment | -750 | ' |
Purchases of property and equipment | -2,301 | -2,072 |
Net cash used for investing activities | -9,117 | -5,824 |
Financing activities: | ' | ' |
Proceeds from the exercise of stock options | 8,227 | 2,739 |
Repurchase of common stock | ' | -10,654 |
Payments in lieu of issuance of common stock for minimum payroll taxes | -426 | -238 |
Proceeds from the issuance of stock under employee stock purchase plan | 312 | 270 |
Net cash provided by (used for) financing activities | 8,113 | -7,883 |
Effect of exchange rate changes on cash | 614 | -367 |
Net increase in cash and cash equivalents | 13,181 | 4,767 |
Cash and cash equivalents at beginning of period | 9,451 | 5,990 |
Cash and cash equivalents at end of period | 22,632 | 10,757 |
Supplemental disclosures: | ' | ' |
Cash paid for income taxes | 1,106 | 75 |
Fixed asset expenditures incurred, not yet paid | $92 | $105 |
Nature_of_Business_and_Basis_o
Nature of Business and Basis of Preparation | 9 Months Ended |
Dec. 31, 2013 | |
Nature of Business and Basis of Preparation | ' |
Note 1. Nature of Business and Basis of Preparation | |
Abiomed, Inc. (the “Company” or “Abiomed”) is a leading provider of mechanical circulatory support devices and offers a continuum of care in heart recovery to heart failure patients. The Company develops, manufactures and markets proprietary products that are designed to enable the heart to rest, heal and recover by improving blood flow and/or performing the pumping function of the heart. The Company’s products are used in the cardiac catheterization lab, or cath lab, by interventional cardiologists and in the heart surgery suite by heart surgeons for patients who are in need of hemodynamic support prophylactically or emergently before, during or after angioplasty or heart surgery procedures. | |
The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP, for interim financial reporting and in accordance with Article 10 of Regulation S-X. Accordingly, they do not include all of the information and note disclosures required by GAAP for complete financial statements. These statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2013 that has been filed with the Securities and Exchange Commission, or SEC. | |
In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments, which are of a normal recurring nature, necessary for a fair presentation of results for the interim periods presented. The results of operations for any interim period may not be indicative of results for the full fiscal year. | |
There have been no changes in the Company’s significant accounting policies for the three and nine months ended December 31, 2013 as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2013 that has been filed with the SEC. |
Net_Income_Per_Share
Net Income Per Share | 9 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Net Income Per Share | ' | ||||||||||||||||
Note 2. Net Income Per Share | |||||||||||||||||
Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing net income by the weighted average number of dilutive common shares outstanding during the period. Diluted shares outstanding are calculated by adding to the weighted average shares outstanding any potential dilutive securities outstanding for the period. Potential dilutive securities include stock options, restricted stock awards, restricted stock units, performance-based stock awards and shares to be purchased under the Company’s employee stock purchase plan. In periods when a net loss is reported, all common stock equivalents are excluded from the calculation because they would have an anti-dilutive effect, meaning the loss per share would be reduced. Therefore, in periods when a loss is reported, basic and dilutive loss per share are the same. The Company’s basic and diluted net income per share for the three and nine months ended December 31, 2013 and 2012 were as follows (in thousands, except per share data): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Basic Net Income Per Share | |||||||||||||||||
Net income | $ | 4,393 | $ | 2,684 | $ | 3,729 | $ | 11,272 | |||||||||
Weighted average shares used in computing basic net income per share | 39,592 | 39,417 | 39,179 | 39,331 | |||||||||||||
Net income per share - basic | $ | 0.11 | $ | 0.07 | $ | 0.1 | $ | 0.29 | |||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Diluted Net Income Per Share | |||||||||||||||||
Net income | $ | 4,393 | $ | 2,684 | $ | 3,729 | $ | 11,272 | |||||||||
Weighted average shares used in computing basic net income per share | 39,592 | 39,417 | 39,179 | 39,331 | |||||||||||||
Effect of dilutive securities | 2,134 | 1,448 | 2,136 | 2,087 | |||||||||||||
Weighted average shares used in computing diluted net income per share | 41,726 | 40,865 | 41,315 | 41,418 | |||||||||||||
Net income per share - diluted | $ | 0.11 | $ | 0.07 | $ | 0.09 | $ | 0.27 | |||||||||
For the three and nine months ended December 31, 2013, approximately 3,000 and 252,000 shares underlying out-of-the-money stock options were not included in the computation of diluted earnings per share because their inclusion would have been anti-dilutive. In addition, for each of the three and nine months ended December 31, 2013, approximately 85,000 restricted shares that related to performance-based awards where milestones were not met were not included in the computation of diluted earnings per share because their inclusion would also have been anti-dilutive. | |||||||||||||||||
For the three and nine months ended December 31, 2012, approximately 575,000 and 268,000 shares underlying out-of-the-money stock options and approximately 333,000 and 294,000 restricted shares, respectively, primarily related to out-of-the-money stock options and performance-based awards where milestones were not met, were not included in the computation of diluted earnings per share because their inclusion would have been anti-dilutive. |
Marketable_Securities_and_Fair
Marketable Securities and Fair Value Measurements | 9 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Marketable Securities and Fair Value Measurements | ' | ||||||||||||||||
Note 3. Marketable Securities and Fair Value Measurements | |||||||||||||||||
Marketable Securities | |||||||||||||||||
The Company’s marketable securities are classified as available-for-sale securities and, accordingly, are recorded at fair value. The difference between amortized cost and fair value is included in stockholders’ equity. | |||||||||||||||||
The Company’s marketable securities at December 31, 2013 and March 31, 2013 are invested in the following: | |||||||||||||||||
Amortized | Gross | Gross | Fair Market | ||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||
Gains | Losses | ||||||||||||||||
(in $000’s) | |||||||||||||||||
At December 31, 2013: | |||||||||||||||||
US Treasury securities | $ | 33,987 | $ | — | $ | — | $ | 33,987 | |||||||||
Short-term government-backed securities | 22,952 | 5 | — | 22,957 | |||||||||||||
Long-term government-backed securities | 27,798 | 3 | (17 | ) | 27,784 | ||||||||||||
$ | 84,737 | $ | 8 | $ | (17 | ) | $ | 84,728 | |||||||||
Amortized | Gross | Gross | Fair Market | ||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||
Gains | Losses | ||||||||||||||||
(in $000’s) | |||||||||||||||||
At March 31, 2013: | |||||||||||||||||
US Treasury securities | $ | 59,020 | $ | — | $ | — | $ | 59,020 | |||||||||
Short-term government-backed securities | 8,235 | 1 | — | 8,236 | |||||||||||||
Long-term government-backed securities | 11,405 | 3 | (2 | ) | 11,406 | ||||||||||||
$ | 78,660 | $ | 4 | $ | (2 | ) | $ | 78,662 | |||||||||
Fair Value Hierarchy | |||||||||||||||||
Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three categories: | |||||||||||||||||
Level 1: Quoted market prices in active markets for identical assets or liabilities. | |||||||||||||||||
Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. | |||||||||||||||||
Level 3: Unobservable inputs that are not corroborated by market data. | |||||||||||||||||
Level 1 primarily consists of financial instruments whose values are based on quoted market prices such as exchange-traded instruments and listed equities. | |||||||||||||||||
Level 2 includes financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including time value, yield curve, volatility factors, prepayment speeds, default rates, loss severity, current market and contractual prices for the underlying financial instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. | |||||||||||||||||
Level 3 is comprised of unobservable inputs that are supported by little or no market activity. Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flows or similar techniques and at least one significant model assumption or input is unobservable. | |||||||||||||||||
The following table presents the Company’s financial instruments recorded at fair value in the consolidated balance sheet, classified according to the three categories described above: | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(in $000’s) | |||||||||||||||||
At December 31, 2013: | |||||||||||||||||
U.S. Treasury securities | $ | — | $ | 33,987 | $ | — | $ | 33,987 | |||||||||
Short-term government-backed securities | — | 22,957 | — | 22,957 | |||||||||||||
Long-term government-backed securities | — | 27,784 | — | 27,784 | |||||||||||||
$ | — | $ | 84,728 | $ | — | $ | 84,728 | ||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(in $000’s) | |||||||||||||||||
At March 31, 2013: | |||||||||||||||||
U.S. Treasury securities | $ | — | $ | 59,020 | $ | — | $ | 59,020 | |||||||||
Short-term government-backed securities | — | 8,236 | — | 8,236 | |||||||||||||
Long-term government-backed securities | — | 11,406 | — | 11,406 | |||||||||||||
$ | — | $ | 78,662 | $ | — | $ | 78,662 | ||||||||||
In May 2013, the Company invested $0.8 million in preferred stock of a private technology company. In addition, the Company committed to invest an additional $0.7 million if this private technology company achieves certain milestones or otherwise at the Company’s option. This other investment is accounted for using the cost method and is measured at fair value on a nonrecurring basis only if there are identified events or changes in circumstance that may have a significant adverse effect on the fair value of these investments. The aggregate carrying amount of this other investment was $0.8 million as of December 31, 2013 and is classified within other assets in the unaudited condensed consolidated balance sheets. |
Inventories
Inventories | 9 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventories | ' | ||||||||
Note 4. Inventories | |||||||||
The components of inventories are as follows: | |||||||||
December 31, | March 31, | ||||||||
2013 | 2013 | ||||||||
(in $000’s) | |||||||||
Raw materials and supplies | $ | 6,704 | $ | 6,267 | |||||
Work-in-progress | 5,896 | 5,296 | |||||||
Finished goods | 2,219 | 3,367 | |||||||
$ | 14,819 | $ | 14,930 | ||||||
The Company’s inventories relate to its circulatory care product lines, primarily the Impella and AB5000 product platforms. Finished goods and work-in-process inventories consist of direct material, labor and overhead. During the nine months ended December 31, 2013 and 2012, the Company recorded $0.6 million and $0.9 million, respectively, in write-downs of inventory. |
Goodwill
Goodwill | 9 Months Ended | ||||
Dec. 31, 2013 | |||||
Goodwill | ' | ||||
Note 5. Goodwill | |||||
The carrying amount of goodwill at December 31, 2013 and March 31, 2013 was $38.0 million and $35.4 million, respectively, and has been recorded in connection with the Company’s acquisition of Impella Cardiosystems AG, or Impella, in 2005. The goodwill activity for the nine months ended December 31, 2013 is as follows: | |||||
(in $000’s) | |||||
Balance at March 31, 2013 | $ | 35,410 | |||
Exchange rate impact | 2,619 | ||||
Balance at December 31, 2013 | $ | 38,029 | |||
Accrued_Expenses
Accrued Expenses | 9 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accrued Expenses | ' | ||||||||
Note 6. Accrued Expenses | |||||||||
Accrued expenses consist of the following: | |||||||||
December 31, | March 31, | ||||||||
2013 | 2013 | ||||||||
(in $000’s) | |||||||||
Employee compensation | $ | 10,665 | $ | 9,664 | |||||
Sales and income taxes | 1,672 | 2,107 | |||||||
Research and development | 1,588 | 1,025 | |||||||
Professional, legal and accounting fees | 740 | 1,100 | |||||||
Warranty | 732 | 708 | |||||||
Other | 618 | 558 | |||||||
$ | 16,015 | $ | 15,162 | ||||||
Employee compensation consists primarily of accrued bonuses, accrued commissions and accrued employee benefits at December 31, 2013 and March 31, 2013. |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||
Note 7. Stock-Based Compensation | |||||||||||||||||
The following table summarizes stock-based compensation expense by financial statement line item in the Company’s consolidated statements of operations for the three and nine months ended December 31, 2013 and 2012: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in $000’s) | (in $000’s) | ||||||||||||||||
Cost of product revenue | $ | 130 | $ | 83 | $ | 476 | $ | 330 | |||||||||
Research and development | 527 | 333 | 1,813 | 1,331 | |||||||||||||
Selling, general and administrative | 991 | 1,520 | 6,078 | 5,238 | |||||||||||||
$ | 1,648 | $ | 1,936 | $ | 8,367 | $ | 6,899 | ||||||||||
The components of stock-based compensation for the three and nine months ended December 31, 2013 and 2012 were as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in $000’s) | (in $000’s) | ||||||||||||||||
Restricted stock units | $ | 1,013 | $ | 1,220 | $ | 5,808 | $ | 4,085 | |||||||||
Stock options | 571 | 583 | 2,094 | 2,135 | |||||||||||||
Restricted stock | 7 | 81 | 310 | 541 | |||||||||||||
Employee stock purchase plan | 57 | 52 | 155 | 138 | |||||||||||||
$ | 1,648 | $ | 1,936 | $ | 8,367 | $ | 6,899 | ||||||||||
Stock Options | |||||||||||||||||
The following table summarizes the stock option activity for the nine months ended December 31, 2013: | |||||||||||||||||
Shares | Weighted | Weighted | Aggregate | ||||||||||||||
Underlying | Average | Average | Intrinsic | ||||||||||||||
Options | Exercise | Remaining | Value | ||||||||||||||
(in thousands) | Price | Contractual | (in thousands) | ||||||||||||||
Term (years) | |||||||||||||||||
Outstanding at April 1, 2013 | 4,228 | $ | 11.49 | 5.37 | |||||||||||||
Granted | 333 | 23.53 | |||||||||||||||
Exercised | (907 | ) | 9.18 | ||||||||||||||
Cancelled and expired | (37 | ) | 18.74 | ||||||||||||||
Outstanding at December 31, 2013 | 3,617 | $ | 13.1 | 5.13 | $ | 49,330 | |||||||||||
Exercisable at December 31, 2013 | 2,798 | $ | 11.25 | 4.18 | $ | 43,350 | |||||||||||
Options vested and expected to vest at December 31, 2013 | 3,521 | $ | 13 | 5.06 | $ | 48,397 | |||||||||||
The aggregate intrinsic value of options exercised was $13.8 million for the nine months ended December 31, 2013. The total fair value of options vested during the nine months ended December 31, 2013 was $2.3 million. | |||||||||||||||||
The remaining unrecognized stock-based compensation expense for unvested stock option awards at December 31, 2013 was approximately $4.9 million, net of forfeitures, and the weighted-average period over which this cost will be recognized is 2.8 years. | |||||||||||||||||
The Company estimates the fair value of each stock option granted at the grant date using the Black-Scholes option valuation model. The weighted average grant-date fair value for options granted during the nine months ended December 31, 2013 and 2012 was $9.84 and $10.07 per share, respectively. | |||||||||||||||||
The fair value of options granted during the three and nine months ended December 31, 2013 and 2012 were calculated using the following weighted average assumptions: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Risk-free interest rate | 1.71 | % | 0.63 | % | 0.94 | % | 0.77 | % | |||||||||
Expected option life (years) | 4.18 | 4.23 | 4.25 | 4.32 | |||||||||||||
Expected volatility | 50.2 | % | 58.1 | % | 51.8 | % | 56.4 | % | |||||||||
The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for a term consistent with the expected life of the stock options. Volatility assumptions are calculated based on the historical volatility of the Company’s stock and adjustments for factors not reflected in historical volatility that may be more indicative of future volatility. The Company estimates the expected term of options based on historical exercise experience and estimates of future exercises of unexercised options. An expected dividend yield of zero is used in the option valuation model because the Company does not pay cash dividends and does not expect to pay any cash dividends in the foreseeable future. The Company estimates forfeitures based on an analysis of actual historical forfeitures, adjusted to reflect that historical forfeitures may not be indicative of forfeitures in the future. | |||||||||||||||||
Restricted Stock and Restricted Stock Units | |||||||||||||||||
In addition to stock option grants, the Company also has the ability to grant restricted stock and restricted stock units. Similar to stock options, these restricted stock and restricted stock unit grants are subject to certain vesting criteria. The following table summarizes the activity for the nine months ended December 31, 2013: | |||||||||||||||||
Number of | Weighted Average | ||||||||||||||||
Shares | Grant Date | ||||||||||||||||
(in thousands) | Fair Value | ||||||||||||||||
(per share) | |||||||||||||||||
Outstanding at April 1, 2013 | 1,022 | $ | 18.44 | ||||||||||||||
Granted | 553 | 23.18 | |||||||||||||||
Vested | (364 | ) | 16.58 | ||||||||||||||
Forfeited | (52 | ) | 18.86 | ||||||||||||||
Outstanding at December 31, 2013 | 1,159 | $ | 21.27 | ||||||||||||||
The remaining unrecognized compensation expense for outstanding restricted stock awards and restricted stock units, including performance-based awards, as of December 31, 2013 was $10.5 million and the weighted-average period over which this cost will be recognized is 1.9 years. | |||||||||||||||||
The weighted average grant-date fair value for restricted stock and restricted stock units granted during the nine months ended December 31, 2013 and 2012 was $23.18 and $22.32 per share, respectively. The total fair value of restricted stock and restricted stock units vested during the nine months ended December 31, 2013 and 2012 was $6.0 million and $3.0 million, respectively. | |||||||||||||||||
Performance Based Awards | |||||||||||||||||
Included in the restricted stock and restricted stock units activity discussed above are certain awards that vest subject to certain performance-based criteria. | |||||||||||||||||
In May 2013, performance-based awards of restricted stock units for the potential issuance of 268,988 shares of common stock were issued to certain executive officers and employees, all of which vest upon achievement of prescribed service milestones by the award recipients and performance milestones by the Company. As of December 31, 2013, the Company is recognizing compensation expense based on the probable outcome related to the prescribed performance targets on the outstanding awards. | |||||||||||||||||
In May 2012, performance-based awards of restricted stock units for the potential issuance of 195,188 shares of common stock were issued to certain executive officers and employees of the Company, all of which will vest upon achievement of prescribed service milestones by the award recipients and performance milestones by the Company. As of December 31, 2013, the Company has met the prescribed performance milestones for these awards. These awards are still subject to service requirements for vesting for these employees and the compensation expense is being recognized accordingly. | |||||||||||||||||
In May 2011 and June 2011, performance-based awards of restricted stock units for the potential issuance of 284,000 shares of common stock were issued to certain executive officers and members of the senior management of the Company, all of which will vest upon achievement of prescribed service milestones by the award recipients and performance milestones by the Company. As of December 31, 2013, the Company has met the prescribed milestones for 234,000 shares underlying these awards and believes that it is not probable that the prescribed performance milestones will be met for the remaining 50,000 shares. The compensation expense on these performance-based awards is being recognized accordingly. | |||||||||||||||||
During the three months ended December 31, 2013, the Company incurred $3,000 in stock-based compensation expense on performance-based awards as it reversed $0.8 million that had been previously recorded as stock-based compensation expense based on it no longer being probable that certain performance milestones will be achieved. During the nine months ended December 31, 2013, the Company recorded $2.8 million in stock-based compensation expense for equity awards in which the prescribed performance milestones have been achieved or are probable of being achieved. The remaining unrecognized compensation expense related to these equity awards at December 31, 2013 is $4.0 million based on the Company’s current assessment of the probability that certain performance milestones will be achieved. The weighted-average period over which this cost will be recognized is 1.9 years. |
Income_Taxes
Income Taxes | 9 Months Ended |
Dec. 31, 2013 | |
Income Taxes | ' |
Note 8. Income Taxes | |
Deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each fiscal year end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce net deferred tax assets to the amount that is more likely than not to be realized. | |
The Company regularly assesses its ability to realize its deferred tax assets. Assessing the realization of deferred tax assets requires significant management judgment. In determining whether its deferred tax assets are more likely than not realizable, the Company evaluated all available positive and negative evidence, and weighted the evidence based on its objectivity. Evidence the Company considered included net operating losses incurred from the Company’s inception to March 31, 2011, expiration of various federal and state tax attributes, the uncertainty relative to the Department of Justice investigation of the Company and the Company’s planned Pre-Market Approval, or PMA, application with the FDA for its Impella products, net income before tax for fiscal 2012 and fiscal 2013, year to date and forecasted results for fiscal 2014 and future years. Based on its review of all available evidence, the Company determined that the objectively verifiable negative evidence outweighed the positive evidence and continues to record a valuation allowance to reduce its deferred tax assets to the amount that is more likely than not to be realizable as of December 31, 2013 and March 31, 2013. The Company will continue to assess the level of the valuation allowance required. If sufficient positive evidence exists in future periods to support a release of some or all of the valuation allowance, such a release would likely have a material impact on our results of operations. | |
As of December 31, 2013, the Company has accumulated a net deferred tax liability of $6.2 million which is the result of the difference in accounting for the Company’s goodwill, which is amortizable over 15 years for tax purposes but not amortizable for book purposes. The net deferred tax liability cannot be offset against the Company’s deferred tax assets since it relates to an indefinite-lived asset and is not anticipated to reverse in the same period. | |
The Company and its subsidiaries are subject to U.S. federal income tax, as well as income tax of multiple state and foreign jurisdictions. The Company has accumulated significant losses since its inception in 1981. All tax years remain subject to examination by major tax jurisdictions, including the federal government and the Commonwealth of Massachusetts. However, because the Company has net operating loss and tax credit carryforwards which may be utilized in future years to offset taxable income, those years may also be subject to review by relevant taxing authorities if the carryforwards are utilized. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Dec. 31, 2013 | |
Commitments and Contingencies | ' |
Note 9. Commitments and Contingencies | |
Commitments | |
In July 2013, the Company entered into a lease agreement to continue renting its existing space in Aachen, Germany through July 31, 2023. The building serves as the Company’s European headquarters and houses most of the manufacturing operations for its Impella product line. The lease payments are approximately 34,500€ (euro) (approximately U.S. $45,000 at December 31, 2013 exchange rates) per month. | |
Litigation | |
From time to time, the Company is involved in legal and administrative proceedings and claims of various types. In some actions, the claimants seek damages, as well as other relief, which, if granted, would require significant expenditures. The Company records a liability in its consolidated financial statements for these matters when a loss is known or considered probable and the amount can be reasonably estimated. The Company reviews these estimates each accounting period as additional information is known and adjusts the loss provision when appropriate. If a matter is both probable to result in liability and the amounts of loss can be reasonably estimated, the Company estimates and discloses the possible loss or range of loss. If the loss is not probable or cannot be reasonably estimated, a liability is not recorded in its consolidated financial statements. | |
On October 26, 2012, the Company was informed that the United States Attorney’s Office for the District of Columbia is conducting an investigation that is focused on the Company’s marketing and labeling of the Impella 2.5. On October 31, 2012, the Company accepted service of a subpoena related to this investigation. The subpoena seeks documents related to the Impella 2.5. The Company is in the process of responding and is cooperating fully with the subpoena. The Company expects to substantially complete the requested document production by the end of fiscal 2014. On September 13, 2013, the Company entered into a tolling agreement with the United States Attorney’s Office, pursuant to which the Company and the United States Attorney’s Office mutually agreed to toll the applicable statutes of limitations for all criminal, civil and administrative offenses and violations that could be charged or claimed against the Company as of that date until June 2, 2014. Because the investigation is in the early stages, management is unable to predict the ultimate outcome or determine whether a liability has been incurred or make an estimate of the reasonably possible liability, if any, that could result from any unfavorable outcome associated with this inquiry. The Company can anticipate, however, that it will incur significant expenses related to this investigation. | |
On November 16 and 19, 2012, two purported class action complaints were filed against the Company and certain of its officers in the U.S. District Court for the District of Massachusetts by alleged purchasers of its common stock, on behalf of themselves and persons or entities that purchased or acquired securities of the Company between August 5, 2011 and October 31, 2012. The complaints alleged that the defendants violated the federal securities laws in connection with disclosures related to the U.S. Food and Drug Administration and the marketing and labeling of the Company’s Impella 2.5 product and seek damages in an unspecified amount. The Court has consolidated these complaints and a consolidated amended complaint was filed by the plaintiffs on May 20, 2013. On July 8, 2013, the Company filed a motion to dismiss the consolidated complaint. Oral argument on the Company’s motion to dismiss was conducted before the presiding district court judge on September 18, 2013. | |
On February 4, 2013, an alleged stockholder of the Company filed a derivative action on the Company’s behalf against each of the Company’s directors in the U.S. District Court for the District of Massachusetts. The complaint alleged that the directors breached their fiduciary duties to the Company and its stockholders in connection with disclosures related to the FDA and the marketing and labeling of the Company’s Impella 2.5 product and sought damages in an unspecified amount. On March 22, 2013, the Company filed a motion to dismiss the derivative action due to the plaintiff’s failure to make a proper demand on the Company’s board of directors. On June 21, 2013, the District Court entered an order granting the Company’s motion and dismissing the derivative action in its entirety. On July 19, 2013, the plaintiff filed an appeal of the dismissal in the United States Court of Appeals for the First Circuit. Oral argument was conducted before the appellate court on February 5, 2014. | |
The Company is unable to estimate its potential liability with respect to the Department of Justice investigation, the purported class action claim and the appeal of the dismissal of the derivative claims. There are numerous factors that make it difficult to meaningfully estimate possible loss or range of loss at this stage of the investigation and lawsuits, including that: the proceedings are in relatively early stages, there are significant factual and legal issues to be resolved, information obtained or rulings made during any lawsuits or investigations could affect the methodology for calculation. In addition, with respect to claims where damages are the requested relief, no amount of loss or damages has been specified. Therefore, the Company is unable at this time to estimate its possible losses and accordingly, no adjustment has been made to the financial statements to reflect the outcome of these uncertainties. |
Segment_and_Enterprise_Wide_Di
Segment and Enterprise Wide Disclosures | 9 Months Ended |
Dec. 31, 2013 | |
Segment and Enterprise Wide Disclosures | ' |
Note 10. Segment and Enterprise Wide Disclosures | |
The Company operates in one business segment—the research, development and sale of medical devices to assist or replace the pumping function of the failing heart. The Company’s chief operating decision maker (determined to be the Chief Executive Officer) does not manage any part of the Company separately, and the allocation of resources and assessment of performance are based on the Company’s consolidated operating results. Approximately 72% and 71% of the Company’s total consolidated assets are located within the U.S. as of December 31, 2013 and March 31, 2013, respectively. The remaining assets are located primarily in Germany and include goodwill of $38.0 million and $35.4 million at December 31, 2013 and March 31, 2013, respectively, associated with the Impella acquisition in May 2005. Total assets outside of the U.S. excluding goodwill amounted to 8% of total consolidated assets as of each of December 31, 2013 and March 31, 2013. International sales (sales outside the U.S. and primarily in Europe) accounted for 10% and 8% of total revenue for the three and nine months ended December 31, 2013, respectively, and 7% and 6% of total revenue for the three and nine months ended December 31, 2012, respectively. |
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Computation of Basic and Diluted Net Income Per Share | ' | ||||||||||||||||
The Company’s basic and diluted net income per share for the three and nine months ended December 31, 2013 and 2012 were as follows (in thousands, except per share data): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Basic Net Income Per Share | |||||||||||||||||
Net income | $ | 4,393 | $ | 2,684 | $ | 3,729 | $ | 11,272 | |||||||||
Weighted average shares used in computing basic net income per share | 39,592 | 39,417 | 39,179 | 39,331 | |||||||||||||
Net income per share - basic | $ | 0.11 | $ | 0.07 | $ | 0.1 | $ | 0.29 | |||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Diluted Net Income Per Share | |||||||||||||||||
Net income | $ | 4,393 | $ | 2,684 | $ | 3,729 | $ | 11,272 | |||||||||
Weighted average shares used in computing basic net income per share | 39,592 | 39,417 | 39,179 | 39,331 | |||||||||||||
Effect of dilutive securities | 2,134 | 1,448 | 2,136 | 2,087 | |||||||||||||
Weighted average shares used in computing diluted net income per share | 41,726 | 40,865 | 41,315 | 41,418 | |||||||||||||
Net income per share - diluted | $ | 0.11 | $ | 0.07 | $ | 0.09 | $ | 0.27 | |||||||||
Marketable_Securities_and_Fair1
Marketable Securities and Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Marketable Securities | ' | ||||||||||||||||
The Company’s marketable securities at December 31, 2013 and March 31, 2013 are invested in the following: | |||||||||||||||||
Amortized | Gross | Gross | Fair Market | ||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||
Gains | Losses | ||||||||||||||||
(in $000’s) | |||||||||||||||||
At December 31, 2013: | |||||||||||||||||
US Treasury securities | $ | 33,987 | $ | — | $ | — | $ | 33,987 | |||||||||
Short-term government-backed securities | 22,952 | 5 | — | 22,957 | |||||||||||||
Long-term government-backed securities | 27,798 | 3 | (17 | ) | 27,784 | ||||||||||||
$ | 84,737 | $ | 8 | $ | (17 | ) | $ | 84,728 | |||||||||
Amortized | Gross | Gross | Fair Market | ||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||
Gains | Losses | ||||||||||||||||
(in $000’s) | |||||||||||||||||
At March 31, 2013: | |||||||||||||||||
US Treasury securities | $ | 59,020 | $ | — | $ | — | $ | 59,020 | |||||||||
Short-term government-backed securities | 8,235 | 1 | — | 8,236 | |||||||||||||
Long-term government-backed securities | 11,405 | 3 | (2 | ) | 11,406 | ||||||||||||
$ | 78,660 | $ | 4 | $ | (2 | ) | $ | 78,662 | |||||||||
Financial Instruments Recorded at Fair Value | ' | ||||||||||||||||
The following table presents the Company’s financial instruments recorded at fair value in the consolidated balance sheet, classified according to the three categories described above: | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(in $000’s) | |||||||||||||||||
At December 31, 2013: | |||||||||||||||||
U.S. Treasury securities | $ | — | $ | 33,987 | $ | — | $ | 33,987 | |||||||||
Short-term government-backed securities | — | 22,957 | — | 22,957 | |||||||||||||
Long-term government-backed securities | — | 27,784 | — | 27,784 | |||||||||||||
$ | — | $ | 84,728 | $ | — | $ | 84,728 | ||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(in $000’s) | |||||||||||||||||
At March 31, 2013: | |||||||||||||||||
U.S. Treasury securities | $ | — | $ | 59,020 | $ | — | $ | 59,020 | |||||||||
Short-term government-backed securities | — | 8,236 | — | 8,236 | |||||||||||||
Long-term government-backed securities | — | 11,406 | — | 11,406 | |||||||||||||
$ | — | $ | 78,662 | $ | — | $ | 78,662 | ||||||||||
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Components of Inventories | ' | ||||||||
The components of inventories are as follows: | |||||||||
December 31, | March 31, | ||||||||
2013 | 2013 | ||||||||
(in $000’s) | |||||||||
Raw materials and supplies | $ | 6,704 | $ | 6,267 | |||||
Work-in-progress | 5,896 | 5,296 | |||||||
Finished goods | 2,219 | 3,367 | |||||||
$ | 14,819 | $ | 14,930 | ||||||
Goodwill_Tables
Goodwill (Tables) | 9 Months Ended | ||||
Dec. 31, 2013 | |||||
Goodwill Activity | ' | ||||
The goodwill activity for the nine months ended December 31, 2013 is as follows: | |||||
(in $000’s) | |||||
Balance at March 31, 2013 | $ | 35,410 | |||
Exchange rate impact | 2,619 | ||||
Balance at December 31, 2013 | $ | 38,029 | |||
Accrued_Expenses_Tables
Accrued Expenses (Tables) | 9 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accrued Expenses | ' | ||||||||
Accrued expenses consist of the following: | |||||||||
December 31, | March 31, | ||||||||
2013 | 2013 | ||||||||
(in $000’s) | |||||||||
Employee compensation | $ | 10,665 | $ | 9,664 | |||||
Sales and income taxes | 1,672 | 2,107 | |||||||
Research and development | 1,588 | 1,025 | |||||||
Professional, legal and accounting fees | 740 | 1,100 | |||||||
Warranty | 732 | 708 | |||||||
Other | 618 | 558 | |||||||
$ | 16,015 | $ | 15,162 | ||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Stock-Based Compensation Recognized | ' | ||||||||||||||||
The following table summarizes stock-based compensation expense by financial statement line item in the Company’s consolidated statements of operations for the three and nine months ended December 31, 2013 and 2012: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in $000’s) | (in $000’s) | ||||||||||||||||
Cost of product revenue | $ | 130 | $ | 83 | $ | 476 | $ | 330 | |||||||||
Research and development | 527 | 333 | 1,813 | 1,331 | |||||||||||||
Selling, general and administrative | 991 | 1,520 | 6,078 | 5,238 | |||||||||||||
$ | 1,648 | $ | 1,936 | $ | 8,367 | $ | 6,899 | ||||||||||
Components of Stock-Based Compensation | ' | ||||||||||||||||
The components of stock-based compensation for the three and nine months ended December 31, 2013 and 2012 were as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in $000’s) | (in $000’s) | ||||||||||||||||
Restricted stock units | $ | 1,013 | $ | 1,220 | $ | 5,808 | $ | 4,085 | |||||||||
Stock options | 571 | 583 | 2,094 | 2,135 | |||||||||||||
Restricted stock | 7 | 81 | 310 | 541 | |||||||||||||
Employee stock purchase plan | 57 | 52 | 155 | 138 | |||||||||||||
$ | 1,648 | $ | 1,936 | $ | 8,367 | $ | 6,899 | ||||||||||
Summary of Stock Option Activity | ' | ||||||||||||||||
The following table summarizes the stock option activity for the nine months ended December 31, 2013: | |||||||||||||||||
Shares | Weighted | Weighted | Aggregate | ||||||||||||||
Underlying | Average | Average | Intrinsic | ||||||||||||||
Options | Exercise | Remaining | Value | ||||||||||||||
(in thousands) | Price | Contractual | (in thousands) | ||||||||||||||
Term (years) | |||||||||||||||||
Outstanding at April 1, 2013 | 4,228 | $ | 11.49 | 5.37 | |||||||||||||
Granted | 333 | 23.53 | |||||||||||||||
Exercised | (907 | ) | 9.18 | ||||||||||||||
Cancelled and expired | (37 | ) | 18.74 | ||||||||||||||
Outstanding at December 31, 2013 | 3,617 | $ | 13.1 | 5.13 | $ | 49,330 | |||||||||||
Exercisable at December 31, 2013 | 2,798 | $ | 11.25 | 4.18 | $ | 43,350 | |||||||||||
Options vested and expected to vest at December 31, 2013 | 3,521 | $ | 13 | 5.06 | $ | 48,397 | |||||||||||
Weighted-Average Assumptions Used to Calculate Fair Value of Options Granted | ' | ||||||||||||||||
The fair value of options granted during the three and nine months ended December 31, 2013 and 2012 were calculated using the following weighted average assumptions: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Risk-free interest rate | 1.71 | % | 0.63 | % | 0.94 | % | 0.77 | % | |||||||||
Expected option life (years) | 4.18 | 4.23 | 4.25 | 4.32 | |||||||||||||
Expected volatility | 50.2 | % | 58.1 | % | 51.8 | % | 56.4 | % | |||||||||
Summary of Restricted Stock and Restricted Stock Units Activity | ' | ||||||||||||||||
The following table summarizes the activity for the nine months ended December 31, 2013: | |||||||||||||||||
Number of | Weighted Average | ||||||||||||||||
Shares | Grant Date | ||||||||||||||||
(in thousands) | Fair Value | ||||||||||||||||
(per share) | |||||||||||||||||
Outstanding at April 1, 2013 | 1,022 | $ | 18.44 | ||||||||||||||
Granted | 553 | 23.18 | |||||||||||||||
Vested | (364 | ) | 16.58 | ||||||||||||||
Forfeited | (52 | ) | 18.86 | ||||||||||||||
Outstanding at December 31, 2013 | 1,159 | $ | 21.27 | ||||||||||||||
Computation_of_Basic_and_Dilut
Computation of Basic and Diluted Net Income Loss Per Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Basic Net Income Per Share | ' | ' | ' | ' |
Net income | $4,393 | $2,684 | $3,729 | $11,272 |
Weighted average shares used in computing basic net income per share | 39,592 | 39,417 | 39,179 | 39,331 |
Net income per share - basic | $0.11 | $0.07 | $0.10 | $0.29 |
Diluted Net Income Per Share | ' | ' | ' | ' |
Net income | $4,393 | $2,684 | $3,729 | $11,272 |
Weighted average shares used in computing basic net income per share | 39,592 | 39,417 | 39,179 | 39,331 |
Effect of dilutive securities | 2,134 | 1,448 | 2,136 | 2,087 |
Weighted average shares used in computing diluted net income per share | 41,726 | 40,865 | 41,315 | 41,418 |
Net income per share - diluted | $0.11 | $0.07 | $0.09 | $0.27 |
Net_Income_per_Share_Additiona
Net Income per Share - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Options | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Shares excluded from the calculation of diluted weighted average shares outstanding | 3,000 | 575,000 | 252,000 | 268,000 |
Performance Shares | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Shares excluded from the calculation of diluted weighted average shares outstanding | 85,000 | 333,000 | 85,000 | 294,000 |
Investable_Marketable_Securiti
Investable Marketable Securities (Detail) (USD $) | Dec. 31, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair Market Value | $84,728 | $78,662 |
US Treasury Securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair Market Value | 33,987 | 59,020 |
US Government-sponsored Enterprises Debt Securities | Short-term Investments | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair Market Value | 22,957 | 8,236 |
US Government-sponsored Enterprises Debt Securities | Long-term Investments | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair Market Value | 27,784 | 11,406 |
Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Amortized Cost | 84,737 | 78,660 |
Gross Unrealized Gains | 8 | 4 |
Gross Unrealized Losses | -17 | -2 |
Fair Market Value | 84,728 | 78,662 |
Level 2 | US Treasury Securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Amortized Cost | 33,987 | 59,020 |
Fair Market Value | 33,987 | 59,020 |
Level 2 | US Government-sponsored Enterprises Debt Securities | Short-term Investments | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Amortized Cost | 22,952 | 8,235 |
Gross Unrealized Gains | 5 | 1 |
Fair Market Value | 22,957 | 8,236 |
Level 2 | US Government-sponsored Enterprises Debt Securities | Long-term Investments | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Amortized Cost | 27,798 | 11,405 |
Gross Unrealized Gains | 3 | 3 |
Gross Unrealized Losses | -17 | -2 |
Fair Market Value | $27,784 | $11,406 |
Financial_Instruments_Recorded
Financial Instruments Recorded at Fair Value (Detail) (USD $) | Dec. 31, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | $84,728 | $78,662 |
US Treasury Securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 33,987 | 59,020 |
US Government-sponsored Enterprises Debt Securities | Short-term Investments | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 22,957 | 8,236 |
US Government-sponsored Enterprises Debt Securities | Long-term Investments | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 27,784 | 11,406 |
Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 84,728 | 78,662 |
Level 2 | US Treasury Securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 33,987 | 59,020 |
Level 2 | US Government-sponsored Enterprises Debt Securities | Short-term Investments | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 22,957 | 8,236 |
Level 2 | US Government-sponsored Enterprises Debt Securities | Long-term Investments | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | $27,784 | $11,406 |
Marketable_Securities_and_Fair2
Marketable Securities and Fair Value Measurements - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Mar. 31, 2013 | 31-May-13 | 31-May-13 |
Equity Securities | Equity Securities | |||
Additional Investment commitment | ||||
Fair Value Measurements Disclosure [Line Items] | ' | ' | ' | ' |
Cost method investment, fair value | ' | ' | $800,000 | $700,000 |
Aggregate carrying amount of other investment | $801,000 | $29,000 | ' | ' |
Components_of_Inventories_Deta
Components of Inventories (Detail) (USD $) | Dec. 31, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory [Line Items] | ' | ' |
Raw materials and supplies | $6,704 | $6,267 |
Work-in-progress | 5,896 | 5,296 |
Finished goods | 2,219 | 3,367 |
Inventories | $14,819 | $14,930 |
Inventories_Additional_Informa
Inventories - Additional Information (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Inventory [Line Items] | ' | ' |
Write-down of inventory | $641 | $891 |
Goodwill_Additional_Informatio
Goodwill - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Line Items] | ' | ' |
Goodwill | $38,029 | $35,410 |
Goodwill_Activity_Detail
Goodwill Activity (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Goodwill [Line Items] | ' |
Beginning Balance | $35,410 |
Exchange rate impact | 2,619 |
Ending Balance | $38,029 |
Accrued_Expenses_Detail
Accrued Expenses (Detail) (USD $) | Dec. 31, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Accrued Liabilities [Line Items] | ' | ' |
Employee compensation | $10,665 | $9,664 |
Sales and income taxes | 1,672 | 2,107 |
Research and development | 1,588 | 1,025 |
Professional, legal and accounting fees | 740 | 1,100 |
Warranty | 732 | 708 |
Other | 618 | 558 |
Accrued expenses | $16,015 | $15,162 |
StockBased_Compensation_Recogn
Stock-Based Compensation Recognized (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation | $1,648 | $1,936 | $8,367 | $6,899 |
Cost of product revenue | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation | 130 | 83 | 476 | 330 |
Research and development | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation | 527 | 333 | 1,813 | 1,331 |
Selling, general and administrative | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation | $991 | $1,520 | $6,078 | $5,238 |
Components_of_StockBased_Compe
Components of Stock-Based Compensation (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation | $1,648 | $1,936 | $8,367 | $6,899 |
Restricted stock units | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation | 1,013 | 1,220 | 5,808 | 4,085 |
Stock Options | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation | 571 | 583 | 2,094 | 2,135 |
Restricted Stock | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation | 7 | 81 | 310 | 541 |
Employee Stock Purchase Plan | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation | $57 | $52 | $155 | $138 |
Summary_of_Stock_Option_Activi
Summary of Stock Option Activity (Detail) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Mar. 31, 2013 |
Options | ' | ' |
Beginning Balance | 4,228 | ' |
Granted | 333 | ' |
Exercised | -907 | ' |
Cancelled and expired | -37 | ' |
Ending Balance | 3,617 | 4,228 |
Exercisable at December 31, 2013 | 2,798 | ' |
Options vested and expected to vest at December 31, 2013 | 3,521 | ' |
Weighted-Average Exercise Price | ' | ' |
Beginning Balance | $11.49 | ' |
Granted | $23.53 | ' |
Exercised | $9.18 | ' |
Cancelled and expired | $18.74 | ' |
Ending Balance | $13.10 | $11.49 |
Exercisable at December 31, 2013 | $11.25 | ' |
Options vested and expected to vest at December 31, 2013 | $13 | ' |
Weighted-Average Remaining Contractual Term (years) | ' | ' |
Outstanding | '5 years 1 month 17 days | '5 years 4 months 13 days |
Exercisable at December 31, 2013 | '4 years 2 months 5 days | ' |
Options vested and expected to vest at December 31, 2013 | '5 years 22 days | ' |
Aggregate Intrinsic Value | ' | ' |
Outstanding at December 31, 2013 | $49,330 | ' |
Exercisable at December 31, 2013 | 43,350 | ' |
Options vested and expected to vest at December 31, 2013 | $48,397 | ' |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | |||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2011 | 31-May-11 | Dec. 31, 2013 | Dec. 31, 2013 | 31-May-13 | 31-May-12 | Dec. 31, 2013 | |
Stock Options | Restricted Stock and Restricted Stock Units | Restricted Stock and Restricted Stock Units | Performance Based Restricted Stock and Restricted Stock Units | Performance Based Restricted Stock and Restricted Stock Units | Performance Based Restricted Stock and Restricted Stock Units | Performance Based Restricted Stock and Restricted Stock Units | Performance Based Restricted Stock and Restricted Stock Units | Performance Based Restricted Stock and Restricted Stock Units | Performance Based Restricted Stock and Restricted Stock Units | |||||
Share Based Awards | Share Based Awards | Scenario, Previously Reported | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate intrinsic value of options exercised in period | ' | ' | $13,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of options vested in period | ' | ' | 2,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized stock-based compensation expense | ' | ' | ' | ' | 4,900,000 | 10,500,000 | ' | ' | ' | 4,000,000 | 4,000,000 | ' | ' | ' |
Unrecognized stock-based compensation expense, weighted-average recognition period | ' | ' | ' | ' | '2 years 9 months 18 days | '1 year 10 months 24 days | ' | ' | ' | ' | '1 year 10 months 24 days | ' | ' | ' |
Weighted average grant-date fair value for options granted | ' | ' | $9.84 | $10.07 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected dividend yield | ' | ' | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average grant-date fair value for restricted stock and restricted stock units granted | ' | ' | ' | ' | ' | $23.18 | $22.32 | ' | ' | ' | ' | ' | ' | ' |
Fair value of restricted stock and restricted stock units vested in period | ' | ' | ' | ' | ' | 6,000,000 | 3,000,000 | ' | ' | ' | ' | ' | ' | ' |
Shares of award granted | ' | ' | ' | ' | ' | 553,000 | ' | 284,000 | 284,000 | ' | ' | 268,988 | 195,188 | ' |
Shares of award granted, performance target met | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 234,000 | ' | ' | ' |
Shares of award granted, it is not probable that the prescribed performance targets will be met | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | ' | ' | ' |
Stock-based compensation | $1,648,000 | $1,936,000 | $8,367,000 | $6,899,000 | ' | ' | ' | ' | ' | $3,000,000 | $2,800,000 | ' | ' | $800,000 |
Weighted_Average_Assumptions_U
Weighted Average Assumptions Used to Calculate Fair Value of Options Granted (Detail) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items] | ' | ' | ' | ' |
Risk-free interest rate | 1.71% | 0.63% | 0.94% | 0.77% |
Expected option life (years) | '4 years 2 months 5 days | '4 years 2 months 23 days | '4 years 3 months | '4 years 3 months 26 days |
Expected volatility | 50.20% | 58.10% | 51.80% | 56.40% |
Summary_of_Restricted_Stock_an
Summary of Restricted Stock and Restricted Stock Units Activity (Detail) (Restricted Stock and Restricted Stock Units, USD $) | 9 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Restricted Stock and Restricted Stock Units | ' | ' |
Number of Shares | ' | ' |
Beginning Balance | 1,022,000 | ' |
Granted | 553,000 | ' |
Vested | -364,000 | ' |
Forfeited | -52,000 | ' |
Ending Balance | 1,159,000 | ' |
Weighted Average Grant Date Fair Value | ' | ' |
Beginning Balance | $18.44 | ' |
Granted | $23.18 | $22.32 |
Vested | $16.58 | ' |
Forfeited | $18.86 | ' |
Ending Balance | $21.27 | ' |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | Y | |
Income Taxes [Line Items] | ' | ' |
Net deferred tax liability | $6,234 | $5,554 |
Amortization period of deferred tax liability (years) | 15 | ' |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (Europe, Lease Agreements) | 1 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
USD ($) | EUR (€) | ||
Commitments and Contingencies [Line Items] | ' | ' | ' |
Facilities leases, base rent per month | ' | $45,000 | € 34,500 |
Lease, expiration date | 31-Jul-23 | ' | ' |
Segment_and_Enterprise_Wide_Di1
Segment and Enterprise Wide Disclosures - Additional Information (Detail) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment | UNITED STATES | UNITED STATES | Europe | Europe | International | International | International | International | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of business segments | 1 | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of total consolidated assets | ' | 72.00% | 71.00% | ' | ' | ' | ' | ' | ' |
Goodwill and intangibles | ' | ' | ' | $38 | $35.40 | ' | ' | ' | ' |
Percentage of total consolidated assets, excluding goodwill and intangibles | ' | ' | ' | 8.00% | 8.00% | ' | ' | ' | ' |
Percentage of total product revenue | ' | ' | ' | ' | ' | 10.00% | 7.00% | 8.00% | 6.00% |