Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Dec. 31, 2014 | Jan. 23, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Dec-14 | |
Document Fiscal Year Focus | 2014 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | ABMD | |
Entity Registrant Name | ABIOMED INC | |
Entity Central Index Key | 815094 | |
Current Fiscal Year End Date | -28 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 41,106,708 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $19,478 | $20,916 |
Short-term marketable securities | 93,946 | 55,663 |
Accounts receivable, net | 28,373 | 24,357 |
Inventories | 15,444 | 13,948 |
Prepaid expenses and other current assets | 3,331 | 3,082 |
Total current assets | 160,572 | 117,966 |
Long-term marketable securities | 17,982 | 41,761 |
Property and equipment, net | 7,583 | 6,889 |
Goodwill | 35,327 | 37,990 |
In-Process Research and Development | 16,480 | 0 |
Long-term deferred tax assets | 778 | |
Other assets | 2,051 | 801 |
Total assets | 240,773 | 205,407 |
Current liabilities: | ||
Accounts payable | 8,249 | 7,746 |
Accrued expenses | 16,561 | 17,899 |
Deferred revenue | 6,595 | 4,766 |
Total current liabilities | 31,405 | 30,411 |
Other long-term liabilities | 196 | 228 |
Contingent consideration | 6,365 | |
Long-term deferred tax liabilities | 7,089 | 6,415 |
Total liabilities | 45,055 | 37,054 |
Commitments and contingencies (Note 10) | ||
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 - 42,333,276 shares at December 31, 2014 and 41,122,695 shares at March 31, 2014; Outstanding - 41,079,333 shares at December 31, 2014 and 39,916,328 shares at March 31, 2014 | 422 | 411 |
Additional paid in capital | 457,891 | 436,136 |
Accumulated deficit | -236,096 | -250,910 |
Treasury stock at cost - 1,253,943 shares at December 31, 2014 and 1,206,367 shares at March 31, 2014 | -17,567 | -16,554 |
Accumulated other comprehensive loss | -8,932 | -730 |
Total stockholders' equity | 195,718 | 168,353 |
Total liabilities and stockholders' equity | $240,773 | $205,407 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Mar. 31, 2014 |
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 | 0 | 0 |
Class B Preferred Stock, outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, Authorized | 100,000,000 | 100,000,000 |
Common stock, Issued | 42,333,276 | 41,122,695 |
Common stock, Outstanding | 41,079,333 | 39,916,328 |
Treasury stock, shares | 1,253,943 | 1,206,367 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Revenue: | ||||
Product revenue | $61,966 | $46,141 | $162,400 | $133,038 |
Funded research and development | 39 | 54 | 354 | 172 |
Total Revenue | 62,005 | 46,195 | 162,754 | 133,210 |
Costs and expenses: | ||||
Cost of product revenue | 9,838 | 9,458 | 29,139 | 27,208 |
Research and development | 8,365 | 7,779 | 26,120 | 22,787 |
Selling, general and administrative | 30,139 | 24,364 | 91,192 | 78,530 |
Costs and Expenses, Total | 48,342 | 41,601 | 146,451 | 128,525 |
Income from operations | 13,663 | 4,594 | 16,303 | 4,685 |
Other income: | ||||
Investment income, net | 48 | 37 | 128 | 78 |
Other (loss) income, net | -10 | 20 | -38 | 5 |
Nonoperating Income (Expense), Total | 38 | 57 | 90 | 83 |
Income before income tax provision | 13,701 | 4,651 | 16,393 | 4,768 |
Income tax provision | 1,017 | 258 | 1,579 | 1,039 |
Net income | $12,684 | $4,393 | $14,814 | $3,729 |
Basic net income per share | $0.31 | $0.11 | $0.37 | $0.10 |
Basic weighted average shares outstanding | 40,856 | 39,592 | 40,456 | 39,179 |
Diluted net income per share | $0.30 | $0.11 | $0.35 | $0.09 |
Diluted weighted average shares outstanding | 42,884 | 41,726 | 42,345 | 41,315 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Net income | $12,684 | $4,393 | $14,814 | $3,729 |
Other comprehensive (loss) income: | ||||
Foreign currency translation (losses) gains | -2,944 | 807 | -8,184 | 3,128 |
Net unrealized losses on marketable securities | -23 | -21 | -18 | -11 |
Other comprehensive (loss) income: | -2,967 | 786 | -8,202 | 3,117 |
Comprehensive income | $9,717 | $5,179 | $6,612 | $6,846 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Operating activities: | ||
Net income | $14,814 | $3,729 |
Adjustments required to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,796 | 1,863 |
Bad debt expense | 43 | 11 |
Stock-based compensation | 12,696 | 8,367 |
Write-down of inventory | 1,135 | 641 |
Deferred tax provision | 675 | 679 |
Change in fair value of contingent consideration | 365 | |
Unrealized losses on investments | 18 | |
Changes in assets and liabilities: | ||
Accounts receivable | -4,320 | 123 |
Inventories | -3,582 | -69 |
Prepaid expenses and other assets | -198 | -345 |
Accounts payable | 368 | -1,679 |
Accrued expenses and other long-term liabilities | -639 | 104 |
Deferred revenue | 1,856 | 147 |
Net cash provided by operating activities | 25,027 | 13,571 |
Investing activities: | ||
Purchases of marketable securities | -72,411 | -58,330 |
Proceeds from the sale and maturity of marketable securities | 57,890 | 52,264 |
Acquisition of ECP and AIS, net of cash assumed | -15,697 | |
Purchase of other investment | -1,250 | -750 |
Purchases of property and equipment | -2,232 | -2,301 |
Net cash used for investing activities | -33,700 | -9,117 |
Financing activities: | ||
Proceeds from the exercise of stock options | 8,624 | 8,227 |
Payments in lieu of issuance of common stock for minimum payroll taxes | -1,013 | -426 |
Proceeds from the issuance of stock under employee stock purchase plan | 397 | 312 |
Net cash provided by financing activities | 8,008 | 8,113 |
Effect of exchange rate changes on cash | -773 | 614 |
Net (decrease) increase in cash and cash equivalents | -1,438 | 13,181 |
Cash and cash equivalents at beginning of period | 20,916 | 9,451 |
Cash and cash equivalents at end of period | 19,478 | 22,632 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 1,090 | 1,106 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Contingent consideration related to acquisition of ECP | 6,000 | |
Fixed asset expenditures incurred, not yet paid | $501 | $92 |
Nature_of_Business_and_Basis_o
Nature of Business and Basis of Preparation | 9 Months Ended |
Dec. 31, 2014 | |
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 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 condensed 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, 2014 that has been filed with the Securities and Exchange Commission, or SEC. | |
In the opinion of management, the accompanying unaudited condensed 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 or any other subsequent period. | |
There have been no changes in the Company’s significant accounting policies for the three and nine months ended December 31, 2014 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, 2014 that has been filed with the SEC, except for as noted below. | |
In-Process Research and Development | |
In-process research and development (“IPR&D”) assets are considered to be indefinite-lived until the completion or abandonment of the associated research and development projects. IPR&D represents the fair value assigned to technologies that the Company acquires, which at the time of acquisition have not reached technological feasibility and have no alternative future use. During the period that the assets are considered indefinite-lived, they are tested for impairment on an annual basis, or more frequently if the Company becomes aware of any events occurring or changes in circumstances that indicate that the fair value of the IPR&D assets are less than their carrying amounts. If and when development is complete, which generally occurs when the Company has regulatory approval and is able to commercialize products associated with the IPR&D assets, these assets are then deemed definite-lived and are amortized based on their estimated useful lives at that point in time. If development is terminated or abandoned, the Company may have a full or partial impairment charge related to the IPR&D assets, calculated as the excess of carrying value of the IPR&D assets over fair value. | |
Contingent Consideration | |
As discussed in Note 3. “Acquisitions,” on July 1, 2014, the Company acquired all of the issued shares of ECP Entwicklungsgesellschaft GmbH, a German limited liability company, or ECP, for $13.0 million in cash, with additional potential payments up to a maximum of $15.0 million based on the achievement of certain technical, regulatory and commercial milestones. These milestone payments may be made, at the Company’s option, by a combination of cash or Abiomed common stock. | |
Contingent consideration is recorded as a liability and measured at fair value using a discounted cash flow model utilizing significant unobservable inputs including the probability of achieving each of the potential milestones and an estimated discount rate associated with the risks of the expected cash flows attributable to the various milestones. Significant increases or decreases in any of the probabilities of success or changes in expected timelines for achievement of any of these milestones would result in a significantly higher or lower fair value of these milestones, respectively, and commensurate changes to the associated liability. The fair value of the contingent consideration will be updated at each reporting date by reflecting the changes in fair value reflected in the Company’s condensed consolidated statements of operations. | |
Recent Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers to provide updated guidance on revenue recognition. ASU 2014-09 requires a company to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies may need to use more judgment and make more estimates than under today’s guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU 2014-09 is effective for the Company in the first quarter of fiscal 2018. Early adoption is not permitted. The Company is currently evaluating the impact of adopting ASU 2014-09 on its condensed consolidated financial statements. |
Net_Income_Per_Share
Net Income Per Share | 9 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
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, 2014 and 2013 were as follows (in thousands, except per share data): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Basic Net Income Per Share | |||||||||||||||||
Net income | $ | 12,684 | $ | 4,393 | $ | 14,814 | $ | 3,729 | |||||||||
Weighted average shares used in computing basic net income per share | 40,856 | 39,592 | 40,456 | 39,179 | |||||||||||||
Net income per share - basic | $ | 0.31 | $ | 0.11 | $ | 0.37 | $ | 0.1 | |||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Diluted Net Income Per Share | |||||||||||||||||
Net income | $ | 12,684 | $ | 4,393 | $ | 14,814 | $ | 3,729 | |||||||||
Weighted average shares used in computing basic net income per share | 40,856 | 39,592 | 40,456 | 39,179 | |||||||||||||
Effect of dilutive securities | 2,028 | 2,134 | 1,889 | 2,136 | |||||||||||||
Weighted average shares used in computing diluted net income per share | 42,884 | 41,726 | 42,345 | 41,315 | |||||||||||||
Net income per share - diluted | $ | 0.3 | $ | 0.11 | $ | 0.35 | $ | 0.09 | |||||||||
For the three and nine months ended December 31, 2014, approximately 1,000 and 36,000 shares underlying stock options primarily related to out-of-the-money stock options were not included in the computation of diluted earnings per share. Also, approximately 460,000 restricted shares in each of the three and nine months ended December 31, 2014 primarily related to performance-based awards for which milestones have not been met, were not included in the computation of diluted earnings per share. | |||||||||||||||||
For the three and nine months ended December 31, 2013, approximately 3,000 and 252,000 shares underlying stock options primarily related to out-of-the-money stock options were not included in the computation of diluted earnings per share. Also, approximately 354,000 restricted shares in each of the three and nine months ended December 31, 2013 primarily related to performance-based awards for which milestones have not been met, were not included in the computation of diluted earnings per share. | |||||||||||||||||
Acquisitions
Acquisitions | 9 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Acquisitions | Note 3. Acquisitions | ||||||||||||||||
Acquisition of ECP Entwicklungsgesellschaft mbH | |||||||||||||||||
On July 1, 2014, the Company entered into a share purchase agreement with its wholly owned German subsidiary, Abiomed Europe GmbH (“Abiomed Europe”) and Syscore GmbH (“Syscore”), a limited liability company located in Berlin, Germany, providing for the Company’s acquisition of all of the share capital of ECP Entwicklungsgesellschaft mbH (“ECP”), a limited liability company incorporated in Germany. ECP is engaged in research, development, prototyping and the production of a percutaneous expandable catheter pump which increases blood circulation from the heart with an external drive shaft. The Company’s acquisition of ECP closed on July 1, 2014. | |||||||||||||||||
The Company acquired ECP for $13.0 million in cash, with additional potential payouts totaling $15.0 million payable to Syscore based on the achievement of certain technical, regulatory and commercial milestones. These milestone payments may be made, at the Company’s option, by a combination of cash or Abiomed common stock. With respect to such milestone payments, the share purchase agreement provides: | |||||||||||||||||
• | that, upon the earlier of (i) the Company’s receipt of European CE Marking approval relating to the sale of an expandable device based on certain patent rights acquired from ECP, or (ii) the Company’s bringing of a successful claim against a third party competitor (or reaching an economically equivalent settlement) for the infringement of certain patent rights acquired from ECP, it will pay Syscore an additional $7.0 million (provided that if such claim or settlement does not prohibit the third party competitor’s further marketing, production, sale, distribution, lease or use of any violating or infringing products, but only awards monetary damages to the Company or to Abiomed Europe, the amount payable to Syscore shall be limited to the lower of the amount of aggregate damages received and $7.0 million); and | ||||||||||||||||
• | that, upon the first to occur of (i) the Company’s successful commercialization of one or more rotatable and expandable devices based on certain patent rights acquired from ECP, where such devices achieve aggregate worldwide revenues of $125.0 million, including the revenues of third party licensees, or (ii) the Company’s sale of (A) ECP, (B) all or substantially all of ECP’s assets, or (C) certain of ECP’s patent rights, the Company will pay to Syscore the lesser of (x) one-half of the profits earned from such sale described in the foregoing item (ii), after accounting for the costs of acquiring and operating ECP, or (y) $15.0 million (less any previous milestone payment). | ||||||||||||||||
ECP’s Acquisition of AIS GmbH Aachen Innovative Solutions | |||||||||||||||||
In connection with the Company’s acquisition of ECP, ECP acquired all of the share capital of AIS GmbH Aachen Innovative Solutions (“AIS”), a limited liability company incorporated in Germany, pursuant to a share purchase agreement dated as of June 30, 2014, by and among ECP and AIS’s four individual shareholders. AIS, based in Aachen, Germany, holds certain intellectual property useful to ECP’s business, and, prior to being acquired by ECP, had licensed such intellectual property to ECP. | |||||||||||||||||
The purchase price for the acquisition of AIS’s share capital was approximately $2.8 million in cash and the acquisition closed immediately prior to Abiomed Europe’s acquisition of ECP. The share purchase agreement contains representations, warranties and closing conditions customary for transactions of its size and nature. | |||||||||||||||||
Preliminary Purchase Price Allocation | |||||||||||||||||
The acquisition was accounted for as a business combination. The purchase price for the acquisition has been allocated to the assets acquired and liabilities assumed based on their estimated fair values. The purchase price allocation presented herein is preliminary. The final purchase price allocation will be determined after completion of an analysis to determine the fair value of all assets acquired and liabilities assumed, but in no event later than one year following completion of the acquisition. Accordingly, the final acquisition accounting adjustments could differ materially from the preliminary amounts presented herein. Any increase or decrease in the fair value of the assets acquired and liabilities assumed, as compared to the information shown herein, could also change the portion of purchase price allocated to goodwill, and could impact the operating results of the Company following the acquisition due to differences in purchase price allocation, depreciation and amortization related to some of these assets and liabilities. | |||||||||||||||||
The acquisition-date fair value of the consideration transferred is as follows: | |||||||||||||||||
Total | |||||||||||||||||
Acquisition | |||||||||||||||||
Date Fair | |||||||||||||||||
Value (in | |||||||||||||||||
thousands) | |||||||||||||||||
Cash consideration | $ | 15,750 | |||||||||||||||
Contingent consideration | 6,000 | ||||||||||||||||
Total consideration transferred | $ | 21,750 | |||||||||||||||
The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed on July 1, 2014, the date of acquisition (in thousands): | |||||||||||||||||
Acquired assets: | |||||||||||||||||
Cash and cash equivalents | $ | 53 | |||||||||||||||
Accounts receivable | 25 | ||||||||||||||||
Property and equipment | 619 | ||||||||||||||||
In-process research and development | 18,500 | ||||||||||||||||
Goodwill | 1,964 | ||||||||||||||||
Long-term deferred tax assets | 874 | ||||||||||||||||
Other assets acquired | 141 | ||||||||||||||||
Total assets acquired | 22,176 | ||||||||||||||||
Liabilities assumed: | |||||||||||||||||
Accounts payable | 295 | ||||||||||||||||
Accrued liabilities | 131 | ||||||||||||||||
Total liabilities assumed | 426 | ||||||||||||||||
Net assets acquired | $ | 21,750 | |||||||||||||||
IPR&D is principally the estimated fair value of the ECP and AIS technology which had not reached commercial technological feasibility nor had alternative future use at the time of the acquisition and therefore considered IPR&D, with assigned values to be allocated among the various IPR&D assets acquired. | |||||||||||||||||
Goodwill is calculated as the difference between the acquisition-date fair value of the consideration transferred and the fair values of the assets acquired and liabilities assumed. The goodwill is not expected to be deductible for income tax purposes. | |||||||||||||||||
All legal, consulting and other costs related to the acquisition, aggregating approximately $1.1 million, have been expensed as incurred and are included in selling, general and administrative expenses in our condensed consolidated statements of operations. The results of operations for ECP and AIS are included in the Company’s condensed consolidated statements of operations for the period from the July 1, 2014 acquisition date to December 31, 2014. The Company has no material revenues and incurred $2.3 million in net losses from July 1, 2014 through December 31, 2014 associated with the operations of ECP. This also includes a $0.4 million expense for the change in fair value of the contingent consideration from July 1, 2014 to December 31, 2014. | |||||||||||||||||
The following unaudited pro forma information presents the combined results of operations for the three and nine months ended December 31, 2014 and 2013, as if the Company had completed the ECP and AIS acquisitions at the beginning of fiscal 2014. The pro forma financial information is provided for comparative purposes only and is not necessarily indicative of what actual results would have been had the acquisition occurred on the date indicated, nor does it give effect to synergies, cost savings, fair market value adjustments, immaterial amortization expense and other changes expected to result from the acquisition. Accordingly, the pro forma financial results do not purport to be indicative of consolidated results of operations as of the date hereof, for any period ended on the date hereof, or for any other future date or period. | |||||||||||||||||
The pro forma consolidated financial information has been calculated after applying the Company’s accounting policies and includes adjustments for transaction-related costs, to eliminate revenues earned by AIS from ECP and expenses paid by ECP to AIS associated with a license agreement between the two parties, interest expense incurred by ECP related to bank loans accounted as if the repayment of ECP debt had occurred on April 1, 2013 and was not outstanding during the periods, and income tax provision of AIS due to the elimination of revenue on the license agreement with ECP. | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 31, | December 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(in $000’s) | (in $000’s) | ||||||||||||||||
Revenue | $ | 62,005 | $ | 46,202 | $ | 162,766 | $ | 133,244 | |||||||||
Income before income tax provision | 13,665 | 3,910 | 16,409 | 2,096 | |||||||||||||
Net income | 12,686 | 3,652 | 14,920 | 1,057 | |||||||||||||
Marketable_Securities_and_Fair
Marketable Securities and Fair Value Measurements | 9 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Marketable Securities and Fair Value Measurements | Note 4. 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, 2014 and March 31, 2014 are invested in the following: | |||||||||||||||||
Amortized | Gross | Gross | Fair Market | ||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||
Gains | Losses | ||||||||||||||||
(in $000’s) | |||||||||||||||||
At December 31, 2014: | |||||||||||||||||
US Treasury securities | $ | 19,487 | $ | — | $ | — | $ | 19,487 | |||||||||
Short-term government-backed securities | 74,478 | 5 | (24 | ) | 74,459 | ||||||||||||
Long-term government-backed securities | 17,997 | 2 | (17 | ) | 17,982 | ||||||||||||
$ | 111,962 | $ | 7 | $ | (41 | ) | $ | 111,928 | |||||||||
Amortized | Gross | Gross | Fair Market | ||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||
Gains | Losses | ||||||||||||||||
(in $000’s) | |||||||||||||||||
At March 31, 2014: | |||||||||||||||||
US Treasury securities | $ | 31,487 | $ | — | $ | — | $ | 31,487 | |||||||||
Short-term government-backed securities | 24,174 | 6 | (4 | ) | 24,176 | ||||||||||||
Long-term government-backed securities | 41,779 | 8 | (26 | ) | 41,761 | ||||||||||||
$ | 97,440 | $ | 14 | $ | (30 | ) | $ | 97,424 | |||||||||
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 condensed consolidated balance sheets, classified according to the three categories described above: | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||||
(in $000’s) | |||||||||||||||||
At December 31, 2014: | |||||||||||||||||
Assets | |||||||||||||||||
U.S. Treasury securities | $ | — | $ | 19,487 | $ | — | $ | 19,487 | |||||||||
Short-term government-backed securities | — | 74,459 | — | 74,459 | |||||||||||||
Long-term government-backed securities | — | 17,982 | — | 17,982 | |||||||||||||
Liabilities | |||||||||||||||||
Contingent consideration | — | — | 6,365 | 6,365 | |||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||||
(in $000’s) | |||||||||||||||||
At March 31, 2014: | |||||||||||||||||
U.S. Treasury securities | $ | — | $ | 31,487 | $ | — | $ | 31,487 | |||||||||
Short-term government-backed securities | — | 24,176 | — | 24,176 | |||||||||||||
Long-term government-backed securities | — | 41,761 | — | 41,761 | |||||||||||||
The Company has determined that the estimated fair value of its investments in U.S. Treasury securities, short-term government-backed securities and long-term government-backed securities are reported as Level 2 as they are not exchange-traded instruments. | |||||||||||||||||
The Company’s financial liabilities consisted of contingent consideration potentially payable to former ECP shareholders related to the acquisition of ECP in July 2014. This liability is reported as Level 3 as estimated fair value of the contingent consideration related to the acquisition of the ECP requires significant management judgment or estimation and is calculated using the income approach, using various revenue and cost assumptions and applying a probability to each outcome. | |||||||||||||||||
The following table summarizes the change in fair value, as determined by Level 3 inputs, of the contingent consideration for the nine months ended December 31, 2014: | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | |||||||||||||||||
(in $000’s) | |||||||||||||||||
Beginning balance | $ | — | |||||||||||||||
Additions | 6,000 | ||||||||||||||||
Payments | — | ||||||||||||||||
Change in fair value | 365 | ||||||||||||||||
Ending balance | $ | 6,365 | |||||||||||||||
The change in fair value of the contingent consideration of $0.4 million for the nine months ended December 31, 2014 was primarily due to an increase in fair value due to the effect of the passage of time on the fair value measurement. Adjustments associated with the change in fair value of contingent consideration are included in research and development expenses on the Company’s condensed consolidated statements of operations. | |||||||||||||||||
The following table presents quantitative information about the inputs and valuation methodologies used for the Company’s fair value measurements classified in Level 3 as of December 31, 2014: | |||||||||||||||||
Fair Value at | Significant | Weighted Average (range, if | |||||||||||||||
December 31, 2014 | Unobservable Input | applicable) | |||||||||||||||
(in $000’s) | |||||||||||||||||
Contingent consideration | $ | 6,365 | Probability weighted income approach | Milestone dates | 2018 to 2021 | ||||||||||||
Discount rate Probability of occurrence | 8% to 12% | ||||||||||||||||
0% to 100% | |||||||||||||||||
Other Investments | |||||||||||||||||
In May 2013, the Company invested $0.8 million in preferred stock of a private medical technology company. In addition, the Company committed to invest an additional $0.7 million if the private medical technology company achieves certain milestones or receives shareholder approval requesting the additional funding. In September 2014, the private medical technology company requested this additional funding and the Company paid the additional $0.7 million. There are no additional outstanding funding commitments associated with this investment. | |||||||||||||||||
In November 2014, the Company invested $0.5 million in a 0% interest promissory note to a separate private medical technology company that is convertible into preferred stock of the company based upon a qualified financing as defined in the agreement governing the investment. | |||||||||||||||||
In January 2015, the Company invested $0.6 million in a 5% interest promissory note to another private medical technology company. This promissory note and accrued interest is convertible into preferred stock of the company upon a qualified financing as defined in the agreement governing the investment. The Company could also be required to invest an additional $0.4 million in the form of a promissory note if certain milestones are met. | |||||||||||||||||
The Company’s other investments are accounted for using the cost method and are measured at fair value on a nonrecurring basis only if there are identified events or changes in circumstances that may have a significant adverse effect on the fair value of these investments. The aggregate carrying amount of other investments was $2.0 million and $0.8 million at December 31, 2014 and March 31, 2014, respectively, and is classified within other assets in the unaudited condensed consolidated balance sheets. | |||||||||||||||||
Inventories
Inventories | 9 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventories | Note 5. Inventories | ||||||||
The components of inventories are as follows: | |||||||||
December 31, | March 31, | ||||||||
2014 | 2014 | ||||||||
(in $000’s) | |||||||||
Raw materials and supplies | $ | 6,722 | $ | 6,414 | |||||
Work-in-progress | 6,592 | 6,261 | |||||||
Finished goods | 2,130 | 1,273 | |||||||
$ | 15,444 | $ | 13,948 | ||||||
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, 2014 and 2013, the Company recorded $1.1 million and $0.6 million, respectively, in write-downs of inventory. |
Goodwill_and_InProcess_Researc
Goodwill and In-Process Research and Development | 9 Months Ended | ||||
Dec. 31, 2014 | |||||
Goodwill and In-Process Research and Development | Note 6. Goodwill and In-Process Research and Development | ||||
Goodwill | |||||
Goodwill has been recorded in connection with the Company’s acquisitions of Impella Cardiosystems AG, or Impella, in 2005 and ECP and AIS in July 2014, as discussed in Note 3. “Acquisitions.” The carrying value of goodwill and the change in the balance for the nine months ended December 31, 2014 is as follows: | |||||
December 31, | |||||
2014 | |||||
(in $000’s) | |||||
Beginning balance | $ | 37,990 | |||
Additions | 1,964 | ||||
Foreign currency translation impact | (4,627 | ) | |||
Ending balance | $ | 35,327 | |||
The Company has no accumulated impairment losses on goodwill. | |||||
In-Process Research and Development | |||||
As described in Note 3. “Acquisitions,” in July 2014, the Company acquired ECP and AIS and recorded $18.5 million of IPR&D. The estimated fair value of the IPR&D was determined using a probability-weighted income approach, which discounts expected future cash flows to present value. The projected cash flows from the expandable catheter pump technology were based on certain key assumptions, including estimates of future revenue and expenses, taking into account the stage of development of the technology at the acquisition date and the time and resources needed to complete development. The Company used a discount rate of 22.5% and cash flows that have been probability adjusted to reflect the risks of product commercialization, which the Company believes are appropriate and representative of market participant assumptions. | |||||
The carrying value of the Company’s IPR&D assets and the change in the balance for the nine months ended December 31, 2014 is as follows: | |||||
December 31, | |||||
2014 | |||||
(in $000’s) | |||||
Beginning balance | $ | — | |||
Additions | 18,500 | ||||
Foreign currency translation impact | (2,020 | ) | |||
Ending balance | $ | 16,480 | |||
Accrued_Expenses
Accrued Expenses | 9 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accrued Expenses | Note 7. Accrued Expenses | ||||||||
Accrued expenses consist of the following: | |||||||||
December 31, | March 31, | ||||||||
2014 | 2014 | ||||||||
(in $000’s) | |||||||||
Employee compensation | $ | 11,463 | $ | 11,967 | |||||
Research and development | 1,518 | 1,587 | |||||||
Sales and income taxes | 1,032 | 1,445 | |||||||
Warranty | 884 | 794 | |||||||
Professional, legal and accounting fees | 836 | 1,304 | |||||||
Other | 828 | 802 | |||||||
$ | 16,561 | $ | 17,899 | ||||||
Employee compensation consists primarily of accrued bonuses, accrued commissions and accrued employee benefits at December 31, 2014 and March 31, 2014. |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Stock-Based Compensation | Note 8. 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, 2014 and 2013: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(in $000’s) | (in $000’s) | ||||||||||||||||
Cost of product revenue | $ | 160 | $ | 130 | $ | 517 | $ | 476 | |||||||||
Research and development | 840 | 527 | 2,466 | 1,813 | |||||||||||||
Selling, general and administrative | 3,382 | 991 | 9,713 | 6,078 | |||||||||||||
$ | 4,382 | $ | 1,648 | $ | 12,696 | $ | 8,367 | ||||||||||
The components of stock-based compensation for the three and nine months ended December 31, 2014 and 2013 were as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(in $000’s) | (in $000’s) | ||||||||||||||||
Restricted stock units and awards | $ | 3,640 | $ | 1,020 | $ | 10,394 | $ | 6,118 | |||||||||
Stock options | 666 | 571 | 2,089 | 2,094 | |||||||||||||
Employee stock purchase plan | 76 | 57 | 213 | 155 | |||||||||||||
$ | 4,382 | $ | 1,648 | $ | 12,696 | $ | 8,367 | ||||||||||
Stock Options | |||||||||||||||||
The following table summarizes the stock option activity for the nine months ended December 31, 2014: | |||||||||||||||||
Shares | Weighted | Weighted | Aggregate | ||||||||||||||
Underlying | Average | Average | Intrinsic | ||||||||||||||
Options | Exercise | Remaining | Value | ||||||||||||||
(in thousands) | Price | Contractual | (in thousands) | ||||||||||||||
Term (years) | |||||||||||||||||
Outstanding at April 1, 2014 | 3,492 | $ | 13.27 | 4.92 | |||||||||||||
Granted | 319 | 22.57 | |||||||||||||||
Exercised | (723 | ) | 11.91 | ||||||||||||||
Cancelled and expired | (11 | ) | 18.34 | ||||||||||||||
Outstanding at December 31, 2014 | 3,077 | $ | 14.54 | 5.24 | $ | 72,379 | |||||||||||
Exercisable at December 31, 2014 | 2,307 | $ | 11.96 | 4.13 | $ | 60,232 | |||||||||||
Options vested and expected to vest at December 31, 2014 | 3,009 | $ | 14.35 | 5.16 | $ | 71,331 | |||||||||||
The aggregate intrinsic value of options exercised was $12.6 million for the nine months ended December 31, 2014. The total fair value of options vested during the nine months ended December 31, 2014 was $2.4 million. | |||||||||||||||||
The remaining unrecognized stock-based compensation expense for unvested stock option awards at December 31, 2014 was approximately $5.1 million, net of forfeitures, and the weighted-average period over which this cost will be recognized is 2.3 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, 2014 and 2013 was $9.18 and $9.84 per share, respectively. | |||||||||||||||||
The fair value of options granted during the three and nine months ended December 31, 2014 and 2013 were calculated using the following weighted average assumptions: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Risk-free interest rate | 1.7 | % | 1.71 | % | 1.6 | % | 0.94 | % | |||||||||
Expected option life (years) | 4.17 | 4.18 | 4.19 | 4.25 | |||||||||||||
Expected volatility | 49.7 | % | 50.2 | % | 49.3 | % | 51.8 | % | |||||||||
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, 2014: | |||||||||||||||||
Number of | Weighted | ||||||||||||||||
Shares | Average | ||||||||||||||||
Grant Date | |||||||||||||||||
Fair Value | |||||||||||||||||
(in thousands) | (per share) | ||||||||||||||||
Outstanding at April 1, 2014 | 1,174 | $ | 21.37 | ||||||||||||||
Granted | 674 | 22.07 | |||||||||||||||
Vested | (465 | ) | 20.48 | ||||||||||||||
Forfeited | (136 | ) | 22.99 | ||||||||||||||
Outstanding at December 31, 2014 | 1,247 | $ | 21.9 | ||||||||||||||
The remaining unrecognized compensation expense for outstanding restricted stock awards and restricted stock units, including performance-based awards, as of December 31, 2014 was $13.9 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, 2014 and 2013 was $22.07 and $23.18 per share, respectively. The total fair value of restricted stock and restricted stock units vested during the nine months ended December 31, 2014 and 2013 was $9.5 million and $6.0 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 2014, performance-based awards of restricted stock units for the potential issuance of 379,752 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, 2014, the Company is recognizing compensation expense based on the probable outcome related to the prescribed performance milestones on the outstanding awards. | |||||||||||||||||
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, 2014, the Company has met the prescribed performance milestones for the outstanding awards such that 149,805 shares of common stock will vest subject to service requirements for vesting for these employees and the compensation expense is being recognized accordingly. | |||||||||||||||||
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, 2014, 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, which vest upon achievement of prescribed service milestones by the award recipients and performance milestones by the Company. As of December 31, 2014, the Company has met the prescribed milestones for 234,000 shares underlying these awards and recorded all related stock compensation expense. In March 2014, the Company modified the performance condition on the remaining 50,000 restricted stock units. As of December 31, 2014, the Company believes that it is probable that the prescribed performance milestones will be met on these restricted stock units and the compensation expense is being recognized accordingly. | |||||||||||||||||
During the three and nine months ended December 31, 2014, the Company has recorded $2.4 million and $6.1 million, respectively, 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, 2014 is $6.2 million based on the Company’s current assessment of probability of achieving the performance milestones. The weighted-average period over which this cost will be recognized is 1.7 years. |
Income_Taxes
Income Taxes | 9 Months Ended |
Dec. 31, 2014 | |
Income Taxes | |
Note 9. Income Taxes | |
The Company’s income tax provision is comprised of a current and deferred tax provision. The current income tax provision is primarily related to German and certain U.S. state taxes. Deferred income taxes are recognized for the tax consequences in future years of differences between the tax basis 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 effective tax rates for the three and nine months ended December 31, 2014 and 2013 are significantly lower than the statutory rate due to the utilization of net operating losses in both the U.S. and Germany. | |
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 its history of net operating losses incurred for most of its existence, expiration of various federal and state attributes, the uncertainty relative to the Marketing and Labeling Investigation and the FCA Investigation (each as defined below in “Note 10. Commitments and Contingencies—Litigation”) and the Company’s Pre-Market Approval, or PMA, application with the U.S. Food and Drug Administration, or FDA, for its Impella 2.5 product, the Company’s expansion into new markets, such as Japan, the government reimbursement environment for the Company’s products, the Company’s profitability for recent years and uncertainties around the Company’s future profitability. Based on the review of all available evidence, the Company determined that the objectively verifiable negative evidence outweighed the positive evidence and it has recorded 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, 2014. 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 its results of operations. | |
As of December 31, 2014, the Company has accumulated a long-term deferred tax liability of $7.1 million as the result of a difference in accounting for the Company’s goodwill associated with its Impella acquisition that was completed in May 2005, which is amortizable over 15 years for tax purposes but not amortizable for book purposes. The net long-term 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. As of December 31, 2014, the Company has net long-term deferred tax assets of $0.8 million relating to differences between the book and tax basis of assets and liabilities associated with the ECP acquisition completed in July 2014. | |
The Company is 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. 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, 2014 | ||||
Commitments and Contingencies | Note 10. 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. $42,000 at December 31, 2014 exchange rates) per month. | ||||
In February 2014, the Company entered into a lease agreement to continue renting its existing space in Danvers, Massachusetts through February 28, 2021. Monthly rent is as follows: | ||||
• | The base rent for March 2014 through April 2014 was $66,000 per month; and | |||
• | The base rent for May 2014 through February 2016 is $74,050 per month; and | |||
• | The base rent for March 2016 through February 2018 will be $70,750 per month; and | |||
• | The base rent for March 2018 through February 2021 will be $72,750 per month. | |||
License Agreement | ||||
In April 2014, the Company entered into an exclusive license agreement with Opsens, Inc. for the rights to certain optical sensor technologies in the field of cardio-circulatory assist devices. The Company made a $1.5 million upfront payment upon execution of the agreement and agreed to make additional payments of up to $4.5 million upon the achievement of certain development milestones. | ||||
Contingent Consideration | ||||
As discussed in Note 3. “Acquisitions,” in July 2014, the Company acquired ECP using a combination of cash and potential post-acquisition milestone payments. These milestone payments may be payable at some time over the next 20 years, depending on the achievement of certain technical, regulatory and commercial milestones. The maximum amount of the aggregate milestone payments could be $15.0 million. As of December 31, 2014, the fair value of the contingent consideration was $6.4 million. | ||||
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 condensed 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 condensed consolidated financial statements. | ||||
On October 26, 2012, the Company was informed that the Department of Justice, United States Attorney’s Office for the District of Columbia was conducting an investigation (the “Marketing and Labeling Investigation”) 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 seeking documents related to the Impella 2.5. The Company believes that is has substantially complied with the subpoena and has submitted the requested documents to the United States Attorney’s Office. 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. On May 27, 2014, the Company executed an extension of the tolling agreement through February 2, 2015. The investigation is ongoing; however, the Company 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 investigation. The Company has incurred significant expenses related to this investigation and expects to continue to incur additional expenses in the future. | ||||
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, or the District Court, by alleged purchasers of its common stock, on behalf of themselves and persons or entities that purchased or acquired common stock 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 Company’s marketing and labeling of the Impella 2.5 product and seek damages in an unspecified amount. The District Court 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 class action. Oral arguments on the Company’s motion to dismiss were conducted before the District Court on September 18, 2013. On April 10, 2014, the District Court entered an order granting the Company’s motion and dismissed the consolidated and amended complaint. On May 9, 2014, the plaintiffs filed a notice of appeal, and subsequently filed their appellate brief with the U.S. Court of Appeals for the First Circuit, or the First Circuit, on July 16, 2014. Oral arguments were conducted before the First Circuit on January 8, 2015. We are currently awaiting the ruling of the First Circuit court. | ||||
On February 4, 2013, an alleged stockholder of the Company filed a derivative action with the District Court on the Company’s behalf against each of the Company’s directors. The complaint alleged that the directors breached their fiduciary duties to the Company and its stockholders in connection with disclosures related to the Company’s marketing and labeling of its 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. On June 21, 2013, the District Court granted the Company’s motion to dismiss. The plaintiff appealed the dismissal to the First Circuit. The First Circuit affirmed the District Court’s Order of Dismissal in a written opinion issued on June 10, 2014. The Company does not expect any further activity related to this matter. | ||||
On April 25, 2014, the Company received a subpoena from the Boston regional office of the United States Department of Health and Human Services, or HHS, Office of Inspector General requesting materials relevant to the Company’s reimbursement of expenses and remuneration to healthcare providers for a six month period from July 2012 through December 2012 in connection with a civil investigation under the False Claims Act (the “FCA Investigation” and, together with the Marketing and Labeling Investigation, the “DOJ Investigations”). The Company submitted the requested documents to HHS and believes that it substantially complied with the subpoena. On November 6, 2014, the Company received notice from the Department of Justice, United States Attorney’s Office for the District of Massachusetts in the form of a Civil Investigative Demand (“CID”) requesting additional document production relating to this matter for the time period of January 1, 2012 through December 31, 2013. The Company is currently is the process of responding to the additional requests for information contained in the CID and intends to continue to cooperate with the U.S. Attorney’s Office in connection with the FCA investigation. | ||||
The Company is unable to estimate a potential liability with respect to the DOJ Investigations and the appeal of the dismissal of the purported class action claim. There are numerous factors that make it difficult to meaningfully estimate possible loss or range of loss at this stage of these investigations and lawsuits, including that: the proceedings are in relatively early stages, there are significant factual and legal issues to be resolved and information obtained or rulings made during any lawsuits or investigations could affect the methodology for calculation. In addition, with respect to claims for which 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, 2014 | |
Segment and Enterprise Wide Disclosures | Note 11. 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 condensed consolidated operating results. Approximately 71% and 74% of the Company’s total consolidated assets are located within the U.S. as of December 31, 2014 and March 31, 2014, respectively. The remaining assets are located primarily in Germany and include goodwill and in-process research and development of $51.8 million and $35.4 million at December 31, 2014 and March 31, 2014, respectively, associated with the Impella acquisition in May 2005 and ECP acquisition in July 2014. Total assets outside of the U.S. excluding goodwill and in-process research and development amounted to 8% of total consolidated assets as of December 31, 2014 and March 31, 2014. International sales (primarily in Europe) accounted for 9% and 10% of total revenue for the three and nine months ended December 31, 2014, respectively, and 10% and 8% of total revenue for the three and nine months ended December 31, 2013, respectively. |
Nature_of_Business_and_Basis_o1
Nature of Business and Basis of Preparation (Policies) | 9 Months Ended |
Dec. 31, 2014 | |
In-Process Research and Development | In-Process Research and Development |
In-process research and development (“IPR&D”) assets are considered to be indefinite-lived until the completion or abandonment of the associated research and development projects. IPR&D represents the fair value assigned to technologies that the Company acquires, which at the time of acquisition have not reached technological feasibility and have no alternative future use. During the period that the assets are considered indefinite-lived, they are tested for impairment on an annual basis, or more frequently if the Company becomes aware of any events occurring or changes in circumstances that indicate that the fair value of the IPR&D assets are less than their carrying amounts. If and when development is complete, which generally occurs when the Company has regulatory approval and is able to commercialize products associated with the IPR&D assets, these assets are then deemed definite-lived and are amortized based on their estimated useful lives at that point in time. If development is terminated or abandoned, the Company may have a full or partial impairment charge related to the IPR&D assets, calculated as the excess of carrying value of the IPR&D assets over fair value. | |
Contingent Consideration | Contingent Consideration |
As discussed in Note 3. “Acquisitions,” on July 1, 2014, the Company acquired all of the issued shares of ECP Entwicklungsgesellschaft GmbH, a German limited liability company, or ECP, for $13.0 million in cash, with additional potential payments up to a maximum of $15.0 million based on the achievement of certain technical, regulatory and commercial milestones. These milestone payments may be made, at the Company’s option, by a combination of cash or Abiomed common stock. | |
Contingent consideration is recorded as a liability and measured at fair value using a discounted cash flow model utilizing significant unobservable inputs including the probability of achieving each of the potential milestones and an estimated discount rate associated with the risks of the expected cash flows attributable to the various milestones. Significant increases or decreases in any of the probabilities of success or changes in expected timelines for achievement of any of these milestones would result in a significantly higher or lower fair value of these milestones, respectively, and commensurate changes to the associated liability. The fair value of the contingent consideration will be updated at each reporting date by reflecting the changes in fair value reflected in the Company’s condensed consolidated statements of operations. | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers to provide updated guidance on revenue recognition. ASU 2014-09 requires a company to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies may need to use more judgment and make more estimates than under today’s guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU 2014-09 is effective for the Company in the first quarter of fiscal 2018. Early adoption is not permitted. The Company is currently evaluating the impact of adopting ASU 2014-09 on its condensed consolidated financial statements. |
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
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, 2014 and 2013 were as follows (in thousands, except per share data): | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Basic Net Income Per Share | |||||||||||||||||
Net income | $ | 12,684 | $ | 4,393 | $ | 14,814 | $ | 3,729 | |||||||||
Weighted average shares used in computing basic net income per share | 40,856 | 39,592 | 40,456 | 39,179 | |||||||||||||
Net income per share - basic | $ | 0.31 | $ | 0.11 | $ | 0.37 | $ | 0.1 | |||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Diluted Net Income Per Share | |||||||||||||||||
Net income | $ | 12,684 | $ | 4,393 | $ | 14,814 | $ | 3,729 | |||||||||
Weighted average shares used in computing basic net income per share | 40,856 | 39,592 | 40,456 | 39,179 | |||||||||||||
Effect of dilutive securities | 2,028 | 2,134 | 1,889 | 2,136 | |||||||||||||
Weighted average shares used in computing diluted net income per share | 42,884 | 41,726 | 42,345 | 41,315 | |||||||||||||
Net income per share - diluted | $ | 0.3 | $ | 0.11 | $ | 0.35 | $ | 0.09 | |||||||||
Acquisitions_Tables
Acquisitions (Tables) | 9 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value of the Consideration Transferred | The acquisition-date fair value of the consideration transferred is as follows: | ||||||||||||||||
Total | |||||||||||||||||
Acquisition | |||||||||||||||||
Date Fair | |||||||||||||||||
Value (in | |||||||||||||||||
thousands) | |||||||||||||||||
Cash consideration | $ | 15,750 | |||||||||||||||
Contingent consideration | 6,000 | ||||||||||||||||
Total consideration transferred | $ | 21,750 | |||||||||||||||
Preliminary Estimated Fair Values of the Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed on July 1, 2014, the date of acquisition (in thousands): | ||||||||||||||||
Acquired assets: | |||||||||||||||||
Cash and cash equivalents | $ | 53 | |||||||||||||||
Accounts receivable | 25 | ||||||||||||||||
Property and equipment | 619 | ||||||||||||||||
In-process research and development | 18,500 | ||||||||||||||||
Goodwill | 1,964 | ||||||||||||||||
Long-term deferred tax assets | 874 | ||||||||||||||||
Other assets acquired | 141 | ||||||||||||||||
Total assets acquired | 22,176 | ||||||||||||||||
Liabilities assumed: | |||||||||||||||||
Accounts payable | 295 | ||||||||||||||||
Accrued liabilities | 131 | ||||||||||||||||
Total liabilities assumed | 426 | ||||||||||||||||
Net assets acquired | $ | 21,750 | |||||||||||||||
Pro Forma Consolidated Financial Information | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 31, | December 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(in $000’s) | (in $000’s) | ||||||||||||||||
Revenue | $ | 62,005 | $ | 46,202 | $ | 162,766 | $ | 133,244 | |||||||||
Income before income tax provision | 13,665 | 3,910 | 16,409 | 2,096 | |||||||||||||
Net income | 12,686 | 3,652 | 14,920 | 1,057 |
Marketable_Securities_and_Fair1
Marketable Securities and Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Marketable Securities | The Company’s marketable securities at December 31, 2014 and March 31, 2014 are invested in the following: | ||||||||||||||||
Amortized | Gross | Gross | Fair Market | ||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||
Gains | Losses | ||||||||||||||||
(in $000’s) | |||||||||||||||||
At December 31, 2014: | |||||||||||||||||
US Treasury securities | $ | 19,487 | $ | — | $ | — | $ | 19,487 | |||||||||
Short-term government-backed securities | 74,478 | 5 | (24 | ) | 74,459 | ||||||||||||
Long-term government-backed securities | 17,997 | 2 | (17 | ) | 17,982 | ||||||||||||
$ | 111,962 | $ | 7 | $ | (41 | ) | $ | 111,928 | |||||||||
Amortized | Gross | Gross | Fair Market | ||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||
Gains | Losses | ||||||||||||||||
(in $000’s) | |||||||||||||||||
At March 31, 2014: | |||||||||||||||||
US Treasury securities | $ | 31,487 | $ | — | $ | — | $ | 31,487 | |||||||||
Short-term government-backed securities | 24,174 | 6 | (4 | ) | 24,176 | ||||||||||||
Long-term government-backed securities | 41,779 | 8 | (26 | ) | 41,761 | ||||||||||||
$ | 97,440 | $ | 14 | $ | (30 | ) | $ | 97,424 | |||||||||
Financial Instruments Recorded at Fair Value | The following table presents the Company’s financial instruments recorded at fair value in the condensed consolidated balance sheets, classified according to the three categories described above: | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||||
(in $000’s) | |||||||||||||||||
At December 31, 2014: | |||||||||||||||||
Assets | |||||||||||||||||
U.S. Treasury securities | $ | — | $ | 19,487 | $ | — | $ | 19,487 | |||||||||
Short-term government-backed securities | — | 74,459 | — | 74,459 | |||||||||||||
Long-term government-backed securities | — | 17,982 | — | 17,982 | |||||||||||||
Liabilities | |||||||||||||||||
Contingent consideration | — | — | 6,365 | 6,365 | |||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||||
(in $000’s) | |||||||||||||||||
At March 31, 2014: | |||||||||||||||||
U.S. Treasury securities | $ | — | $ | 31,487 | $ | — | $ | 31,487 | |||||||||
Short-term government-backed securities | — | 24,176 | — | 24,176 | |||||||||||||
Long-term government-backed securities | — | 41,761 | — | 41,761 | |||||||||||||
Change in Fair Value of Contingent Consideration as Determined by Level 3 Inputs | The following table summarizes the change in fair value, as determined by Level 3 inputs, of the contingent consideration for the nine months ended December 31, 2014: | ||||||||||||||||
December 31, | |||||||||||||||||
2014 | |||||||||||||||||
(in $000’s) | |||||||||||||||||
Beginning balance | $ | — | |||||||||||||||
Additions | 6,000 | ||||||||||||||||
Payments | — | ||||||||||||||||
Change in fair value | 365 | ||||||||||||||||
Ending balance | $ | 6,365 | |||||||||||||||
Quantitative Information about Inputs and Valuation Methodologies Used for Fair Value Measurements Classified in Level 3 | The following table presents quantitative information about the inputs and valuation methodologies used for the Company’s fair value measurements classified in Level 3 as of December 31, 2014: | ||||||||||||||||
Fair Value at | Significant | Weighted Average (range, if | |||||||||||||||
December 31, 2014 | Unobservable Input | applicable) | |||||||||||||||
(in $000’s) | |||||||||||||||||
Contingent consideration | $ | 6,365 | Probability weighted income approach | Milestone dates | 2018 to 2021 | ||||||||||||
Discount rate Probability of occurrence | 8% to 12% | ||||||||||||||||
0% to 100% |
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Components of Inventories | The components of inventories are as follows: | ||||||||
December 31, | March 31, | ||||||||
2014 | 2014 | ||||||||
(in $000’s) | |||||||||
Raw materials and supplies | $ | 6,722 | $ | 6,414 | |||||
Work-in-progress | 6,592 | 6,261 | |||||||
Finished goods | 2,130 | 1,273 | |||||||
$ | 15,444 | $ | 13,948 | ||||||
Goodwill_and_InProcess_Researc1
Goodwill and In-Process Research and Development (Tables) | 9 Months Ended | ||||
Dec. 31, 2014 | |||||
Carrying Value of Goodwill | The carrying value of goodwill and the change in the balance for the nine months ended December 31, 2014 is as follows: | ||||
December 31, | |||||
2014 | |||||
(in $000’s) | |||||
Beginning balance | $ | 37,990 | |||
Additions | 1,964 | ||||
Foreign currency translation impact | (4,627 | ) | |||
Ending balance | $ | 35,327 | |||
Carrying value of In-Process Research and Development | The carrying value of the Company’s IPR&D assets and the change in the balance for the nine months ended December 31, 2014 is as follows: | ||||
December 31, | |||||
2014 | |||||
(in $000’s) | |||||
Beginning balance | $ | — | |||
Additions | 18,500 | ||||
Foreign currency translation impact | (2,020 | ) | |||
Ending balance | $ | 16,480 | |||
Accrued_Expenses_Tables
Accrued Expenses (Tables) | 9 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accrued Expenses | Accrued expenses consist of the following: | ||||||||
December 31, | March 31, | ||||||||
2014 | 2014 | ||||||||
(in $000’s) | |||||||||
Employee compensation | $ | 11,463 | $ | 11,967 | |||||
Research and development | 1,518 | 1,587 | |||||||
Sales and income taxes | 1,032 | 1,445 | |||||||
Warranty | 884 | 794 | |||||||
Professional, legal and accounting fees | 836 | 1,304 | |||||||
Other | 828 | 802 | |||||||
$ | 16,561 | $ | 17,899 | ||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
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, 2014 and 2013: | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(in $000’s) | (in $000’s) | ||||||||||||||||
Cost of product revenue | $ | 160 | $ | 130 | $ | 517 | $ | 476 | |||||||||
Research and development | 840 | 527 | 2,466 | 1,813 | |||||||||||||
Selling, general and administrative | 3,382 | 991 | 9,713 | 6,078 | |||||||||||||
$ | 4,382 | $ | 1,648 | $ | 12,696 | $ | 8,367 | ||||||||||
Components of Stock-Based Compensation | The components of stock-based compensation for the three and nine months ended December 31, 2014 and 2013 were as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(in $000’s) | (in $000’s) | ||||||||||||||||
Restricted stock units and awards | $ | 3,640 | $ | 1,020 | $ | 10,394 | $ | 6,118 | |||||||||
Stock options | 666 | 571 | 2,089 | 2,094 | |||||||||||||
Employee stock purchase plan | 76 | 57 | 213 | 155 | |||||||||||||
$ | 4,382 | $ | 1,648 | $ | 12,696 | $ | 8,367 | ||||||||||
Summary of Stock Option Activity | The following table summarizes the stock option activity for the nine months ended December 31, 2014: | ||||||||||||||||
Shares | Weighted | Weighted | Aggregate | ||||||||||||||
Underlying | Average | Average | Intrinsic | ||||||||||||||
Options | Exercise | Remaining | Value | ||||||||||||||
(in thousands) | Price | Contractual | (in thousands) | ||||||||||||||
Term (years) | |||||||||||||||||
Outstanding at April 1, 2014 | 3,492 | $ | 13.27 | 4.92 | |||||||||||||
Granted | 319 | 22.57 | |||||||||||||||
Exercised | (723 | ) | 11.91 | ||||||||||||||
Cancelled and expired | (11 | ) | 18.34 | ||||||||||||||
Outstanding at December 31, 2014 | 3,077 | $ | 14.54 | 5.24 | $ | 72,379 | |||||||||||
Exercisable at December 31, 2014 | 2,307 | $ | 11.96 | 4.13 | $ | 60,232 | |||||||||||
Options vested and expected to vest at December 31, 2014 | 3,009 | $ | 14.35 | 5.16 | $ | 71,331 | |||||||||||
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, 2014 and 2013 were calculated using the following weighted average assumptions: | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Risk-free interest rate | 1.7 | % | 1.71 | % | 1.6 | % | 0.94 | % | |||||||||
Expected option life (years) | 4.17 | 4.18 | 4.19 | 4.25 | |||||||||||||
Expected volatility | 49.7 | % | 50.2 | % | 49.3 | % | 51.8 | % | |||||||||
Summary of Restricted Stock and Restricted Stock Units Activity | The following table summarizes the activity for the nine months ended December 31, 2014: | ||||||||||||||||
Number of | Weighted | ||||||||||||||||
Shares | Average | ||||||||||||||||
Grant Date | |||||||||||||||||
Fair Value | |||||||||||||||||
(in thousands) | (per share) | ||||||||||||||||
Outstanding at April 1, 2014 | 1,174 | $ | 21.37 | ||||||||||||||
Granted | 674 | 22.07 | |||||||||||||||
Vested | (465 | ) | 20.48 | ||||||||||||||
Forfeited | (136 | ) | 22.99 | ||||||||||||||
Outstanding at December 31, 2014 | 1,247 | $ | 21.9 | ||||||||||||||
Nature_of_Business_and_Basis_o2
Nature of Business and Basis of Preparation - Additional Information (Detail) (USD $) | 0 Months Ended |
Jul. 01, 2014 | |
Business And Basis Of Presentation [Line Items] | |
Payments to acquire businesses, cash paid | $15,750,000 |
ECP Entwicklungsgesellschaft mbH | |
Business And Basis Of Presentation [Line Items] | |
Payments to acquire businesses, cash paid | 13,000,000 |
Potential payouts payments | $15,000,000 |
Computation_of_Basic_and_Dilut
Computation of Basic and Diluted Net Income Per Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Basic Net Income Per Share | ||||
Net income | $12,684 | $4,393 | $14,814 | $3,729 |
Weighted average shares used in computing basic net income per share | 40,856 | 39,592 | 40,456 | 39,179 |
Net income per share - basic | $0.31 | $0.11 | $0.37 | $0.10 |
Diluted Net Income Per Share | ||||
Net income | $12,684 | $4,393 | $14,814 | $3,729 |
Weighted average shares used in computing basic net income per share | 40,856 | 39,592 | 40,456 | 39,179 |
Effect of dilutive securities | 2,028 | 2,134 | 1,889 | 2,136 |
Weighted average shares used in computing diluted net income per share | 42,884 | 41,726 | 42,345 | 41,315 |
Net income per share - diluted | $0.30 | $0.11 | $0.35 | $0.09 |
Net_Income_Per_Share_Additiona
Net Income Per Share - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from the calculation of diluted weighted average shares outstanding | 1,000 | 3,000 | 36,000 | 252,000 |
Restricted Stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from the calculation of diluted weighted average shares outstanding | 460,000 | 354,000 | 460,000 | 354,000 |
Acquisitions_Additional_Inform
Acquisitions - Additional Information (Detail) (USD $) | 0 Months Ended | 6 Months Ended | 9 Months Ended | |
Jul. 01, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Jul. 01, 2014 | |
Business Acquisition [Line Items] | ||||
Payments to acquire businesses, cash paid | $15,750,000 | |||
Expense for the change in fair value contingent consideration | 365,000 | |||
Selling, general and administrative | ||||
Business Acquisition [Line Items] | ||||
Legal, consulting and other costs related to the acquisition included in consolidated statements of operations | 1,100,000 | |||
ECP Entwicklungsgesellschaft mbH | ||||
Business Acquisition [Line Items] | ||||
Business acquisition, date of acquisition agreement | 1-Jul-14 | |||
Payments to acquire businesses, cash paid | 13,000,000 | |||
Potential payouts payments | 15,000,000 | 15,000,000 | ||
Business combination, contingent consideration arrangements, descriptions | With respect to such milestone payments, the share purchase agreement provides: b" that, upon the earlier of (i) the Companybs receipt of European CE Marking approval relating to the sale of an expandable device based on certain patent rights acquired from ECP, or (ii) the Company bringing of a successful claim against a third party competitor (or reaching an economically equivalent settlement) for the infringement of certain patent rights acquired from ECP, it will pay Syscore an additional $7.0 million (provided that if such claim or settlement does not prohibit the third party competitorbs further marketing, production, sale, distribution, lease or use of any violating or infringing products, but only awards monetary damages to us or to Abiomed Europe, the amount payable to Syscore shall be limited to the lower of the amount of aggregate damages received and $7.0 million); and b" that, upon the first to occur of (i) the Companybs successful commercialization of one or more rotatable and expandable devices based on certain patent rights acquired from ECP, where such devices achieve aggregate worldwide revenues of $125.0 million, including the revenues of third party licensees, or (ii) the Companybs sale of (A) ECP, (B) all or substantially all of ECPbs assets, or (C) certain of ECPbs patent rights, the Company will pay to Syscore the lesser of (y) one-half of the profits earned from such sale described in the foregoing item (ii), after accounting for the costs of acquiring and operating ECP, or (z) $15.0 million (less any previous milestone payment). | |||
Expense due to infringement of certain patent rights acquired | 7,000,000 | 7,000,000 | ||
Aggregate worldwide revenues, including revenues of third party licensees, targeted to be met for milestone payments | 125,000,000 | 125,000,000 | ||
Revenues | 0 | |||
Net loss | 2,300,000 | |||
Expense for the change in fair value contingent consideration | 400,000 | |||
AIS GmbH Aachen Innovative Solutions | ||||
Business Acquisition [Line Items] | ||||
Business acquisition, date of acquisition agreement | 30-Jun-14 | |||
Payments to acquire businesses, cash paid | $2,800,000 |
Fair_Value_of_the_Consideratio
Fair Value of the Consideration Transferred (Detail) (USD $) | 0 Months Ended |
In Thousands, unless otherwise specified | Jul. 01, 2014 |
Business Acquisition [Line Items] | |
Cash consideration | $15,750 |
Contingent consideration | 6,000 |
Total consideration transferred | $21,750 |
Preliminary_Estimated_Fair_Val
Preliminary Estimated Fair Values of the Assets Acquired and Liabilities Assumed (Detail) (USD $) | Dec. 31, 2014 | Mar. 31, 2014 | Jul. 01, 2014 |
In Thousands, unless otherwise specified | |||
Acquired assets: | |||
Goodwill | $35,327 | $37,990 | |
Long-term deferred tax assets | 778 | ||
ECP | |||
Acquired assets: | |||
Cash and cash equivalents | 53 | ||
Accounts receivable | 25 | ||
Property and equipment | 619 | ||
In-process research and development | 18,500 | ||
Goodwill | 1,964 | ||
Long-term deferred tax assets | 874 | ||
Other assets acquired | 141 | ||
Total assets acquired | 22,176 | ||
Liabilities assumed: | |||
Accounts payable | 295 | ||
Accrued liabilities | 131 | ||
Total liabilities assumed | 426 | ||
Net assets acquired | $21,750 |
Pro_Forma_Consolidated_Financi
Pro Forma Consolidated Financial Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Revenue | $62,005 | $46,202 | $162,766 | $133,244 |
Income before income tax provision | 13,665 | 3,910 | 16,409 | 2,096 |
Net income | $12,686 | $3,652 | $14,920 | $1,057 |
Investable_Marketable_Securiti
Investable Marketable Securities (Detail) (USD $) | Dec. 31, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
US Treasury Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Market Value | $19,487 | $31,487 |
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 | 74,459 | 24,176 |
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 | 17,982 | 41,761 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 111,962 | 97,440 |
Gross Unrealized Gains | 7 | 14 |
Gross Unrealized Losses | -41 | -30 |
Fair Market Value | 111,928 | 97,424 |
Level 2 | US Treasury Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 19,487 | 31,487 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Market Value | 19,487 | 31,487 |
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 | 74,478 | 24,174 |
Gross Unrealized Gains | 5 | 6 |
Gross Unrealized Losses | -24 | -4 |
Fair Market Value | 74,459 | 24,176 |
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 | 17,997 | 41,779 |
Gross Unrealized Gains | 2 | 8 |
Gross Unrealized Losses | -17 | -26 |
Fair Market Value | $17,982 | $41,761 |
Financial_Instruments_Recorded
Financial Instruments Recorded at Fair Value (Detail) (USD $) | Dec. 31, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | $6,365 | |
US Treasury Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 19,487 | 31,487 |
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 | 74,459 | 24,176 |
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 | 17,982 | 41,761 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 111,928 | 97,424 |
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 | 19,487 | 31,487 |
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 | 74,459 | 24,176 |
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 | 17,982 | 41,761 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | $6,365 |
Change_in_Fair_Value_of_Contin
Change in Fair Value of Contingent Consideration as Determined by Level 3 Inputs (Detail) (Contingent Consideration, ECP Entwicklungsgesellschaft mbH, Level 3, USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Contingent Consideration | ECP Entwicklungsgesellschaft mbH | Level 3 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Beginning balance | $0 |
Additions | 6,000 |
Payments | 0 |
Change in fair value | 365 |
Ending balance | $6,365 |
Marketable_Securities_and_Fair2
Marketable Securities and Fair Value Measurements - Additional Information (Detail) (USD $) | 9 Months Ended | |||||
Dec. 31, 2014 | Mar. 31, 2014 | 31-May-13 | Sep. 30, 2014 | Nov. 30, 2014 | Jan. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Change in fair value of the contingent consideration | $365,000 | |||||
Aggregate carrying amount of other investment | 2,051,000 | 801,000 | ||||
Other Investments | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Aggregate carrying amount of other investment | 2,000,000 | 800,000 | ||||
Equity Securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cost method investment, fair value | 800,000 | |||||
Equity Securities | Additional Investment commitment | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cost method investment, fair value | 700,000 | |||||
Equity Securities | Additional Investment payment | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cost method investment, fair value | 700,000 | |||||
Convertible Debt Securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cost method investment, fair value | 500,000 | |||||
Promissory notes, interest rate | 0.00% | |||||
Convertible Debt Securities | Subsequent Event | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cost method investment, fair value | 600,000 | |||||
Promissory notes, interest rate | 5.00% | |||||
Convertible Debt Securities | Subsequent Event | Additional Investment commitment | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cost method investment, fair value | $400,000 |
Quantitative_Information_about
Quantitative Information about Inputs and Valuation Methodologies Used for Fair Value Measurements Classified in Level 3 (Detail) (USD $) | 1 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Jul. 31, 2014 | Dec. 31, 2014 |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Contingent consideration | 6,365 | |
Discount rate | 22.50% | |
Level 3 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Contingent consideration | 6,365 | |
ECP Entwicklungsgesellschaft mbH | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Contingent consideration | 6,365 | |
ECP Entwicklungsgesellschaft mbH | Level 3 | Probability weighted income approach | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Contingent consideration | 6,365 | |
ECP Entwicklungsgesellschaft mbH | Level 3 | Probability weighted income approach | Contingent Consideration | Minimum | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Milestone date | 2018 | |
Discount rate | 8.00% | |
Probability of occurrence | 0.00% | |
ECP Entwicklungsgesellschaft mbH | Level 3 | Probability weighted income approach | Contingent Consideration | Maximum | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Milestone date | 2021 | |
Discount rate | 12.00% | |
Probability of occurrence | 100.00% |
Components_of_Inventories_Deta
Components of Inventories (Detail) (USD $) | Dec. 31, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
Inventory [Line Items] | ||
Raw materials and supplies | $6,722 | $6,414 |
Work-in-progress | 6,592 | 6,261 |
Finished goods | 2,130 | 1,273 |
Inventories | $15,444 | $13,948 |
Inventories_Additional_Informa
Inventories - Additional Information (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Inventory [Line Items] | ||
Write-down of inventory | $1,135 | $641 |
Goodwill_Activity_Detail
Goodwill Activity (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Goodwill [Line Items] | |
Beginning balance | $37,990 |
Additions | 1,964 |
Foreign currency translation impact | -4,627 |
Ending balance | $35,327 |
Goodwill_and_InProcess_Researc2
Goodwill and In-Process Research and Development - Additional Information (Detail) (USD $) | 1 Months Ended | ||
Jul. 31, 2014 | Dec. 31, 2014 | Mar. 31, 2014 | |
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Accumulated impairment loss, goodwill | $0 | ||
In-Process Research and Development | $18,500,000 | $16,480,000 | $0 |
Fair value inputs, discount rate | 22.50% |
InProcess_Research_and_Develop
In-Process Research and Development Activity (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Jul. 31, 2014 |
Indefinite-lived Intangible Assets [Line Items] | ||
Beginning balance | $0 | $18,500 |
Additions | 18,500 | |
Foreign currency translation impact | -2,020 | |
Ending balance | $16,480 | $18,500 |
Accrued_Expenses_Detail
Accrued Expenses (Detail) (USD $) | Dec. 31, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ||
Employee compensation | $11,463 | $11,967 |
Research and development | 1,518 | 1,587 |
Sales and income taxes | 1,032 | 1,445 |
Warranty | 884 | 794 |
Professional, legal and accounting fees | 836 | 1,304 |
Other | 828 | 802 |
Accrued expenses | $16,561 | $17,899 |
StockBased_Compensation_Recogn
Stock-Based Compensation Recognized (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | $4,382 | $1,648 | $12,696 | $8,367 |
Cost of product revenue | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 160 | 130 | 517 | 476 |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 840 | 527 | 2,466 | 1,813 |
Selling, general and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | $3,382 | $991 | $9,713 | $6,078 |
Components_of_StockBased_Compe
Components of Stock-Based Compensation (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | $4,382 | $1,648 | $12,696 | $8,367 |
Restricted stock units and awards | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 3,640 | 1,020 | 10,394 | 6,118 |
Stock Options | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 666 | 571 | 2,089 | 2,094 |
Employee Stock Purchase Plan | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | $76 | $57 | $213 | $155 |
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, 2014 | Mar. 31, 2014 |
Options | ||
Outstanding at April 1, 2014 | 3,492 | |
Granted | 319 | |
Exercised | -723 | |
Cancelled and expired | -11 | |
Outstanding at December 31, 2014 | 3,077 | 3,492 |
Exercisable at December 31, 2014 | 2,307 | |
Options vested and expected to vest at end of year | 3,009 | |
Weighted-Average Exercise Price | ||
Outstanding at April 1, 2014 | $13.27 | |
Granted | $22.57 | |
Exercised | $11.91 | |
Cancelled and expired | $18.34 | |
Outstanding at December 31, 2014 | $14.54 | $13.27 |
Exercisable at December 31, 2014 | $11.96 | |
Options vested and expected to vest at December 31, 2014 | $14.35 | |
Weighted-Average Remaining Contractual Term (years) | ||
Outstanding | 5 years 2 months 27 days | 4 years 11 months 1 day |
Exercisable at December 31, 2014 | 4 years 1 month 17 days | |
Options vested and expected to vest at December 31, 2014 | 5 years 1 month 28 days | |
Aggregate Intrinsic Value | ||
Outstanding at December 31, 2014 | $72,379 | |
Exercisable at December 31, 2014 | 60,232 | |
Options vested and expected to vest at December 31, 2014 | $71,331 |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | ||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2011 | 31-May-11 | 31-May-14 | 31-May-13 | 31-May-12 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Aggregate intrinsic value of options exercised in period | $12,600,000 | ||||||||
Fair value of options vested in period | 2,400,000 | ||||||||
Weighted average grant-date fair value for options granted | $9.18 | $9.84 | |||||||
Expected dividend yield | 0.00% | ||||||||
Stock-based compensation | 4,382,000 | 1,648,000 | 12,696,000 | 8,367,000 | |||||
Stock Options | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Unrecognized stock-based compensation expense | 5,100,000 | 5,100,000 | |||||||
Unrecognized stock-based compensation expense, weighted-average recognition period | 2 years 3 months 18 days | ||||||||
Stock-based compensation | 666,000 | 571,000 | 2,089,000 | 2,094,000 | |||||
Restricted Stock and Restricted Stock Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Unrecognized stock-based compensation expense | 13,900,000 | 13,900,000 | |||||||
Unrecognized stock-based compensation expense, weighted-average recognition period | 1 year 10 months 24 days | ||||||||
Weighted average grant-date fair value for restricted stock and restricted stock units granted | $22.07 | $23.18 | |||||||
Fair value of restricted stock and restricted stock units vested in period | 9,500,000 | 6,000,000 | |||||||
Shares of award granted | 674,000 | ||||||||
Shares of award vested | 465,000 | ||||||||
Performance Based Restricted Stock and Restricted Stock Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Unrecognized stock-based compensation expense | 6,200,000 | 6,200,000 | |||||||
Unrecognized stock-based compensation expense, weighted-average recognition period | 1 year 8 months 12 days | ||||||||
Shares of award granted | 284,000 | 284,000 | |||||||
Shares of award granted, performance target met | 234,000 | ||||||||
Shares of award granted, it is probable that the prescribed performance targets will be met | 50,000 | ||||||||
Stock-based compensation | $2,400,000 | $6,100,000 | |||||||
Performance Based Restricted Stock and Restricted Stock Units | Share Based Awards | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares of award granted | 379,752 | 268,988 | 195,188 | ||||||
Shares of award vested | 149,805 |
Weighted_Average_Assumptions_U
Weighted Average Assumptions Used to Calculate Fair Value of Options Granted (Detail) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Risk-free interest rate | 1.70% | 1.71% | 1.60% | 0.94% |
Expected option life (years) | 4 years 2 months 1 day | 4 years 2 months 5 days | 4 years 2 months 9 days | 4 years 3 months |
Expected volatility | 49.70% | 50.20% | 49.30% | 51.80% |
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, 2014 | Dec. 31, 2013 | |
Restricted Stock and Restricted Stock Units | ||
Number of Shares | ||
Beginning Balance | 1,174,000 | |
Granted | 674,000 | |
Vested | -465,000 | |
Forfeited | -136,000 | |
Ending Balance | 1,247,000 | |
Weighted Average Grant Date Fair Value | ||
Beginning Balance | $21.37 | |
Granted | $22.07 | $23.18 |
Vested | $20.48 | |
Forfeited | $22.99 | |
Ending Balance | $21.90 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Mar. 31, 2014 |
Income Taxes [Line Items] | ||
Long-term deferred tax liability | $7,089 | $6,415 |
Amortization period of deferred tax liability (years) | 15 years | |
Long-term deferred tax assets | $778 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) | Dec. 31, 2014 | Apr. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Jul. 01, 2014 | Dec. 31, 2014 | Jul. 01, 2014 | Jul. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 |
USD ($) | USD ($) | For March 2014 through April 2014 | For May 2014 through February 2016 | For March 2016 through February 2018 | For March 2018 through February 2021 | ECP Entwicklungsgesellschaft mbH | ECP Entwicklungsgesellschaft mbH | ECP Entwicklungsgesellschaft mbH | Europe | Europe | Europe | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Lease Agreements | Lease Agreements | Lease Agreements | ||||
USD ($) | EUR (€) | |||||||||||
Commitments and Contingencies [Line Items] | ||||||||||||
Facilities leases, base rent per month | $66,000 | $74,050 | $70,750 | $72,750 | $42,000 | € 34,500 | ||||||
Lease, expiration date | 31-Jul-23 | |||||||||||
License agreement, upfront payment | 1,500,000 | |||||||||||
License agreement, maximum agreed additional payments upon achievement of development milestones | 4,500,000 | |||||||||||
Potential payouts payments | 15,000,000 | |||||||||||
Period of milestone payment | 20 years | |||||||||||
Fair value of contingent consideration | $6,365,000 | $6,365,000 |
Segment_and_Enterprise_Wide_Di1
Segment and Enterprise Wide Disclosures - Additional Information (Detail) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 |
Segment | |||||
Segment Reporting Information [Line Items] | |||||
Number of business segments | 1 | ||||
Goodwill | $35,327 | 35,327 | $37,990 | ||
United States | |||||
Segment Reporting Information [Line Items] | |||||
Percentage of total consolidated assets | 71.00% | 71.00% | 74.00% | ||
Europe | |||||
Segment Reporting Information [Line Items] | |||||
Goodwill | $51,800 | 51,800 | $35,400 | ||
Percentage of total consolidated assets, excluding goodwill | 8.00% | 8.00% | 8.00% | ||
International | |||||
Segment Reporting Information [Line Items] | |||||
Percentage of total product revenue | 10.00% | 9.00% | 10.00% | 8.00% |