Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Dec. 31, 2015 | Jan. 31, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2015 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | ABMD | |
Entity Registrant Name | ABIOMED INC | |
Entity Central Index Key | 815,094 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 42,437,354 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Mar. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 53,226 | $ 22,401 |
Short-term marketable securities | 142,968 | 109,557 |
Accounts receivable, net | 36,842 | 31,828 |
Inventories | 25,535 | 16,774 |
Prepaid expenses and other current assets | 4,115 | 4,479 |
Deferred tax assets, net | 19,059 | 35,100 |
Total current assets | 281,745 | 220,139 |
Long-term marketable securities | 13,996 | |
Property and equipment, net | 15,020 | 9,127 |
Goodwill | 31,697 | 31,534 |
In-process research and development | 14,786 | 14,711 |
Long-term deferred tax assets, net | 43,956 | 45,206 |
Other assets | 4,422 | 3,654 |
Total assets | 391,626 | 338,367 |
Current liabilities: | ||
Accounts payable | 8,836 | 10,389 |
Accrued expenses | 21,921 | 21,894 |
Deferred revenue | 6,913 | 7,036 |
Total current liabilities | 37,670 | 39,319 |
Other long-term liabilities | 236 | 183 |
Contingent consideration | 7,392 | 6,510 |
Long-term deferred tax liabilities | 799 | 795 |
Total liabilities | $ 46,097 | $ 46,807 |
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 - 43,777,675 shares at December 31, 2015 and 42,618,717 shares at March 31, 2015; Outstanding - 42,437,354 shares at December 31, 2015 and 41,335,773 shares at March 31, 2015 | $ 424 | $ 413 |
Additional paid in capital | 495,991 | 465,046 |
Accumulated deficit | (110,073) | (137,222) |
Treasury stock at cost - 1,340,321 shares at December 31, 2015 and 1,282,944 shares at March 31, 2015 | (23,255) | (19,347) |
Accumulated other comprehensive loss | (17,558) | (17,330) |
Total stockholders' equity | 345,529 | 291,560 |
Total liabilities and stockholders' equity | $ 391,626 | $ 338,367 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2015 | Mar. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
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 | 43,777,675 | 42,618,717 |
Common stock, Outstanding | 42,437,354 | 41,335,773 |
Treasury stock, shares | 1,340,321 | 1,282,944 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue: | ||||
Product revenue | $ 85,789 | $ 61,966 | $ 235,569 | $ 162,400 |
Funded research and development | 6 | 39 | 17 | 354 |
Total Revenue | 85,795 | 62,005 | 235,586 | 162,754 |
Costs and expenses: | ||||
Cost of product revenue | 12,744 | 9,838 | 35,756 | 29,139 |
Research and development | 13,755 | 8,365 | 35,534 | 26,120 |
Selling, general and administrative | 41,853 | 30,139 | 119,005 | 91,192 |
Costs and Expenses, Total | 68,352 | 48,342 | 190,295 | 146,451 |
Income from operations | 17,443 | 13,663 | 45,291 | 16,303 |
Other income: | ||||
Investment income, net | 84 | 48 | 209 | 128 |
Other (loss) income, net | (29) | (10) | 111 | (38) |
Nonoperating Income (Expense), Total | 55 | 38 | 320 | 90 |
Income before income taxes | 17,498 | 13,701 | 45,611 | 16,393 |
Income tax provision | 6,943 | 1,017 | 18,462 | 1,579 |
Net income | $ 10,555 | $ 12,684 | $ 27,149 | $ 14,814 |
Basic net income per share | $ 0.25 | $ 0.31 | $ 0.64 | $ 0.37 |
Basic weighted average shares outstanding | 42,427 | 40,856 | 42,118 | 40,456 |
Diluted net income per share | $ 0.23 | $ 0.30 | $ 0.61 | $ 0.35 |
Diluted weighted average shares outstanding | 44,949 | 42,884 | 44,805 | 42,345 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 10,555 | $ 12,684 | $ 27,149 | $ 14,814 |
Other comprehensive (loss) income: | ||||
Foreign currency translation losses | (2,520) | (2,944) | (212) | (8,184) |
Net unrealized losses on marketable securities | (32) | (23) | (16) | (18) |
Other comprehensive loss | (2,552) | (2,967) | (228) | (8,202) |
Comprehensive income | $ 8,003 | $ 9,717 | $ 26,921 | $ 6,612 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Operating activities: | ||
Net income | $ 27,149 | $ 14,814 |
Adjustments required to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 2,214 | 1,796 |
Bad debt expense | 78 | 43 |
Stock-based compensation | 21,731 | 12,696 |
Write-down of inventory | 1,356 | 1,135 |
Excess tax benefit from stock-based awards | (488) | |
Deferred tax provision | 17,382 | 675 |
Change in fair value of contingent consideration | 882 | 365 |
Changes in assets and liabilities: | ||
Accounts receivable | (5,084) | (4,320) |
Inventories | (10,092) | (3,582) |
Prepaid expenses and other assets | 343 | (180) |
Accounts payable | (1,740) | 368 |
Accrued expenses and other liabilities | 632 | (639) |
Deferred revenue | (125) | 1,856 |
Net cash provided by operating activities | 54,238 | 25,027 |
Investing activities: | ||
Purchases of marketable securities | (189,595) | (72,411) |
Proceeds from the sale and maturity of marketable securities | 170,195 | 57,890 |
Acquisition of ECP and AIS, net of cash assumed | (15,697) | |
Purchase of other investment | (750) | (1,250) |
Purchases of property and equipment | (7,933) | (2,232) |
Net cash used for investing activities | (28,083) | (33,700) |
Financing activities: | ||
Proceeds from the exercise of stock options | 8,237 | 8,624 |
Excess tax benefit from stock-based awards | 488 | |
Taxes paid related to net share settlement of vesting of stock awards | (3,908) | (1,013) |
Proceeds from the issuance of stock under employee stock purchase plan | 451 | 397 |
Net cash provided by financing activities | 5,268 | 8,008 |
Effect of exchange rate changes on cash | (598) | (773) |
Net increase (decrease) in cash and cash equivalents | 30,825 | (1,438) |
Cash and cash equivalents at beginning of period | 22,401 | 20,916 |
Cash and cash equivalents at end of period | 53,226 | 19,478 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 724 | 1,090 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Contingent consideration related to acquisition of ECP | 6,000 | |
Property and equipment in accounts payable and accrued expenses | $ 471 | $ 501 |
Nature of Business and Basis of
Nature of Business and Basis of Preparation | 9 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Nature of Business and Basis of Preparation | Note 1. Nature of Business and Basis of Preparation Abiomed, Inc. (the “Company”) is a 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, 2015 that has been filed with the Securities and Exchange Commission (the “SEC”). In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, which are of a normal recurring nature and are 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, 2015 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, 2015 that has been filed with the SEC. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory, In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805)—Simplifying the Accounting for Measurement-Period Adjustments. The Company is in the process of assessing the impact of the adoption of ASU 2015-16 on its financial position. In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740)—Balance Sheet Classification of Deferred Taxes The FASB is currently working on amendments to existing accounting standards governing a number of areas including, but not limited to, accounting for leases. In May 2013, the FASB issued an ASU (Revised), Leases (Topic 842) Leases |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
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 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, 2015 and 2014 were as follows (in thousands, except per share data): For the Three Months Ended December 31, For the Nine Months Ended December 31, 2015 2014 2015 2014 Basic Net Income Per Share Net income $ 10,555 $ 12,684 $ 27,149 $ 14,814 Weighted average shares used in computing basic net income per share 42,427 40,856 42,118 40,456 Net income per share - basic $ 0.25 $ 0.31 $ 0.64 $ 0.37 For the Three Months Ended December 31, For the Nine Months Ended December 31, 2015 2014 2015 2014 Diluted Net Income Per Share Net income $ 10,555 $ 12,684 $ 27,149 $ 14,814 Weighted average shares used in computing basic net income per share 42,427 40,856 42,118 40,456 Effect of dilutive securities 2,522 2,028 2,687 1,889 Weighted average shares used in computing diluted net income per share 44,949 42,884 44,805 42,345 Net income per share - diluted $ 0.23 $ 0.30 $ 0.61 $ 0.35 For the three and nine months ended December 31, 2015, approximately 14,000 and 7,000 shares, respectively, underlying out-of-the-money stock options were not included in the computation of diluted earnings per share because their effect would have been anti-dilutive. Also, approximately 226,000 restricted shares in each of the three and nine months ended December 31, 2015, 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, 2014, approximately 1,000 and 36,000 shares, respectively, underlying out-of-the-money stock options were not included in the computation of diluted earnings per share because their effect would have been anti-dilutive. Also, approximately 460,000 restricted shares in each of the three and nine months ended December 31, 2014 related to performance-based awards for which milestones had not been met, were not included in the computation of diluted earnings per share. |
Acquisitions
Acquisitions | 9 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
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 the Company’s 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, which was provided by the Company, 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. Purchase Price Allocation The acquisition of ECP and AIS 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 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 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 1,874 Other assets acquired 141 Total assets acquired 23,176 Liabilities assumed: Accounts payable 295 Accrued liabilities 131 Long-term deferred tax liabilities 1,000 Total liabilities assumed 1,426 Net assets acquired $ 21,750 In-process research and development (“IPR&D”) is the estimated fair value of the ECP and AIS technology that had either not reached commercial technological feasibility nor had alternative future use at the time of the acquisition. Therefore, the Company 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 resulting from these acquisitions arises largely from synergies expected from combining the operations of ECP and AIS with the Company’s existing operations. The goodwill is not deductible for income tax purposes. The following unaudited pro forma information presents the combined results of operations for the three and nine months ended December 31, 2015 and 2014, as if the Company had completed the ECP and AIS acquisitions at the beginning of fiscal 2015. 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 for as if the repayment of ECP debt had occurred 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. For the Three Months Ended December 31, For the Nine Months Ended December 31, 2015 2014 2015 2014 (in $000's) (in $000's) Revenue $ 85,795 $ 62,005 $ 235,586 $ 162,766 Income before income tax provision 17,498 13,665 45,611 16,409 Net income 10,555 12,686 27,149 14,920 The Company has no material revenues and incurred $2.8 million in net losses from July 1, 2014 through December 31, 2015 associated with the operations of ECP and AIS acquisitions. |
Marketable Securities and Fair
Marketable Securities and Fair Value Measurements | 9 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
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, 2015 and March 31, 2015 are invested in the following: Amortized Gross Unrealized Gross Unrealized Fair Market Cost Gains Losses Value (in $000's) December 31, 2015: US Treasury mutual fund securities $ 19,488 $ — $ — $ 19,488 Short-term government-backed securities 123,499 16 (35 ) 123,480 $ 142,987 $ 16 $ (35 ) $ 142,968 Amortized Gross Unrealized Gross Unrealized Fair Market Cost Gains Losses Value (in $000's) March 31, 2015: US Treasury mutual fund securities $ 19,487 $ — $ — $ 19,487 Short-term government-backed securities 90,070 9 (9 ) 90,070 Long-term government-backed securities 13,999 2 (5 ) 13,996 $ 123,556 $ 11 $ (14 ) $ 123,553 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 Total December 31, 2015: (in $000's) Assets U.S. Treasury mutual fund securities $ — $ 19,488 $ — $ 19,488 Short-term government-backed securities — 123,480 — 123,480 Liabilities Contingent consideration — — 7,392 7,392 Level 1 Level 2 Level 3 Total March 31, 2015: (in $000's) Assets U.S. Treasury mutual fund securities $ — $ 19,487 $ — $ 19,487 Short-term government-backed securities — 90,070 — 90,070 Long-term government-backed securities — 13,996 — 13,996 Liabilities Contingent consideration — — 6,510 6,510 The Company’s investments in U.S. Treasury mutual fund securities, short-term government-backed securities and long-term government-backed securities are reported as Level 2 financial assets 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 the 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, 2015: For the Three Months Ended December 31, For the Nine Months Ended December 31, 2015 2014 2015 2014 (in $000's) (in $000's) Level 3 liabilities, beginning balance $ 6,817 $ 5,797 $ 6,510 $ — Additions — — — 6,000 Payments — — — — Change in fair value 575 568 882 365 Level 3 liabilities, ending balance $ 7,392 $ 6,365 $ 7,392 $ 6,365 The change in fair value of the contingent consideration was due to an increase in fair value caused by the effect of the passage of time on the fair value measurement of milestones related to the ECP acquisition and continued progress on the development of the underlying technology. 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 as of December 31, 2015 classified as Level 3: Fair Value at Weighted Average December 31, 2015 Significant (range, if (in $000's) Valuation Methodology Unobservable Input applicable) Contingent consideration $ 7,392 Probability weighted income approach Milestone dates 2018 to 2021 Discount rate 8% to 12% Probability of occurrence Probability adjusted level of 40% for the base case scenario and 5% to 30% for various upside and downside scenarios Other Investments The Company periodically makes investments in private medical device companies that focus on heart failure and heart pump technologies. In July 2015, the Company invested $0.8 million for its participation in a preferred stock offering of a private medical technology company. The aggregate carrying amount of the Company’s other investments was $4.4 million and $3.6 million at each of December 31, 2015 and March 31, 2015, respectively, and is classified within other assets in the unaudited condensed consolidated balance sheets. These investments are accounted for using the cost method and are measured at fair value only if there are identified events or changes in circumstances that may have a significant adverse effect on the fair value of these investments. |
Inventories
Inventories | 9 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 5. Inventories The components of inventories are as follows: December 31, 2015 March 31, 2015 (in $000's) Raw materials and supplies $ 8,894 $ 7,417 Work-in-progress 10,427 6,466 Finished goods 6,214 2,891 $ 25,535 $ 16,774 The Company’s inventories relate to its circulatory care product lines, primarily its Impella® heart pump product platforms. Finished goods and work-in-process inventories consist of direct material, labor and overhead. During the three and nine months ended December 31, 2015, the Company recorded $0.4 million and $1.4 million, respectively, in write-downs of inventory. During the three and nine months ended December 31, 2014, the Company recorded $0.6 million and $1.1 million, respectively, in write-downs of inventory. |
Goodwill and In-Process Researc
Goodwill and In-Process Research and Development | 9 Months Ended |
Dec. 31, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and In-Process Research and Development | Note 6. Goodwill and In-Process Research and Development Goodwill The carrying amount of goodwill at December 31, 2015 and March 31, 2015 was $31.7 million and $31.5 million, respectively, and has been recorded in connection with the Company’s acquisition of Impella Cardiosystems AG (“Impella Cardiosystems”), in May 2005 and ECP and AIS in July 2014. The goodwill activity is as follows: (in $000's) Balance at March 31, 2015 $ 31,534 Foreign currency translation impact 163 Balance at December 31, 2015 $ 31,697 The Company evaluates goodwill and IPR&D assets at least annually at October 31, as well as whenever events or changes in circumstances suggest that the carrying amount may not be recoverable. The Company has no accumulated impairment losses on goodwill or IPR&D assets. As described in Note 3 “Acquisitions,” the Company acquired ECP and AIS in July 2014 and recorded $18.5 million of IPR&D assets. The estimated fair value of IPR&D assets at the acquisition date 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, 2015 are as follows: (in $000's) Balance at March 31, 2015 $ 14,711 Foreign currency translation impact 75 Balance at December 31, 2015 $ 14,786 |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Dec. 31, 2015 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | Note 7. Accrued Expenses Accrued expenses consist of the following: December 31, 2015 March 31, 2015 (in $000's) Employee compensation $ 14,484 $ 15,978 Research and development 2,495 1,744 Sales and income taxes 1,324 1,506 Professional, legal and accounting fees 1,155 710 Warranty 639 1,103 Other 1,824 853 $ 21,921 $ 21,894 Employee compensation consists primarily of accrued bonuses, accrued commissions and accrued employee benefits at December 31, 2015 and March 31, 2015. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
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 condensed consolidated statements of operations for the three and nine months ended December 31, 2015 and 2014: For the Three Months Ended December 31, For the Nine Months Ended December 31, 2015 2014 2015 2014 (in $000's) (in $000's) Cost of product revenue $ 216 $ 160 $ 671 $ 517 Research and development 994 840 2,914 2,466 Selling, general and administrative 4,929 3,382 18,146 9,713 $ 6,139 $ 4,382 $ 21,731 $ 12,696 The components of stock-based compensation for the three and nine months ended December 31, 2015 and 2014 were as follows: For the Three Months Ended December 31, For the Nine Months Ended December 31, 2015 2014 2015 2014 (in $000's) (in $000's) Restricted stock units $ 5,133 $ 3,640 $ 17,482 $ 10,394 Stock options 909 666 3,955 2,089 Employee stock purchase plan 97 76 294 213 $ 6,139 $ 4,382 $ 21,731 $ 12,696 The Company’s former Chief Financial Officer retired effective July 31, 2015 and currently serves as a consultant to the Company through July 31, 2017. In connection with the former Chief Financial Officer’s retirement agreement, his unvested options and restricted stock units were modified such that they will continue to vest and he will be permitted to exercise any vested options until July 31, 2017, including any options that vest after his retirement date, other than such options that expire on the tenth anniversary of the grant date. The Company recorded costs of $2.5 million in stock compensation expense, which is recorded in selling, general and administrative expenses for the nine months ended December 31, 2015. In June 2015, the Company’s Board of Directors adopted a non-employee director retirement policy that provides for the accelerated vesting of all stock options, restricted stock units and other equity awards held by a non-employee director if he or she permanently ceases his or her service on the Company’s Board of Directors by reason of death, disability, or the non-employee director’s retirement following at least five years of service and so long as his or her age plus service equals or exceeds 65. This retirement policy accelerated the recognition of stock-based compensation because the outstanding unvested restricted stock units held by retirement eligible non-employee directors are able to vest at their decision to retire. The Company recorded costs of $1.4 million in accelerated stock compensation expense, which is recorded in selling, general and administrative expenses for the nine months ended December 31, 2015. In August 2015, the Company approved the annual equity award grant to non-employee directors in the form of restricted stock units covering 3,900 shares of the Company’s common stock, which vest on the earlier of: (a) the one year anniversary of the grant date; or (b) the next annual meeting of stockholders. In conjunction with the Company’s non-employee director retirement policy, the stock compensation expense for awards to retirement eligible non-employee directors was fully recognized upon grant. The Company recorded costs of $2.0 million in stock compensation expense, which is recorded in selling, general and administrative expenses for the nine months ended December 31, 2015. Stock Options The following table summarizes the stock option activity for the nine months ended December 31, 2015: Weighted Weighted Average Aggregate Average Remaining Intrinsic Options Exercise Contractual Value (in thousands) Price Term (years) (in thousands) Outstanding at beginning of period 2,892 $ 14.72 5.18 Granted 164 71.15 Exercised (721 ) 11.42 Cancelled and expired (2 ) 13.81 Outstanding at end of period 2,333 $ 19.71 5.35 $ 164,775 Exercisable at end of period 1,690 $ 13.83 4.27 $ 129,224 Options vested and expected to vest at end of period 2,273 $ 19.33 5.27 $ 161,336 The aggregate intrinsic value of options exercised was $50.7 million for the nine months ended December 31, 2015. The total fair value of options that vested during the nine months ended December 31, 2015 was $2.5 million. The remaining unrecognized stock-based compensation expense for unvested stock option awards at December 31, 2015 was approximately $6.3 million, net of forfeitures, and the weighted-average period over which this cost will be recognized is 2.4 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 values and weighted average assumptions used in the calculation of fair value of options granted during the three and nine months ended December 31, 2015 and 2014 was as follows: For the Three Months Ended December 31, For the Nine Months Ended December 31, 2015 2014 2015 2014 Weighted average grant-date fair value $ 34.05 $ 15.36 $ 28.91 $ 9.18 Valuation assumptions: Risk-free interest rate 1.50 % 1.70 % 1.60 % 1.60 % Expected option life (years) 4.15 4.17 4.14 4.19 Expected volatility 49.6 % 49.7 % 49.7 % 49.3 % 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 the extent historic forfeitures may not be indicative of forfeitures in the future. Restricted Stock and Restricted Stock Units The following table summarizes the activity of restricted stock and restricted stock units for the nine months ended December 31, 2015: Number of Shares Weighted Average Grant Date Fair Value (in thousands) (per share) Restricted stock and restricted stock units at beginning of period 1,160 $ 21.90 Granted 679 $ 87.95 Vested (465 ) $ 22.65 Forfeited (45 ) $ 15.44 Restricted stock and restricted stock units at end of period 1,329 $ 55.61 The weighted average grant-date fair value for restricted stock units granted, including performance and market-based awards, during the nine months ended December 31, 2015 and 2014 was $87.95 and $22.07 per share, respectively. This includes 322,980 market based awards which were valued at $107.10 per share based on a Monte Carlo simulation that was used to account for the market condition in valuing the award. See details below in “Market Based Awards”. The total fair value of restricted stock units that vested during the nine months ended December 31, 2015 and 2014 was $10.3 million and $9.5 million, respectively. The remaining unrecognized compensation expense for outstanding restricted stock units, including performance and market-based awards, as of December 31, 2015 was $33.9 million and the weighted-average period over which this cost will be recognized is 2.4 years. Performance and Market-Based Awards Included in the restricted stock units activity are certain awards that vest subject to certain performance and market-based criteria. The remaining unrecognized compensation expense for outstanding performance and market-based restricted stock units as of December 31, 2015 was $23.2 million and the weighted-average period over which this cost will be recognized is 2.4 years. Performance-Based Awards In May 2015, performance-based awards of restricted stock units for the potential issuance of 183,940 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, 2015, the Company is recognizing compensation expense based on the probable outcome related to the prescribed performance targets on the outstanding awards. 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. The Company met the prescribed performance milestones in fiscal 2015. As of December 31, 2015, approximately 200,000 shares of common stock underlying restricted stock units remain unvested and such restricted stock units will vest subject to service requirements for vesting for these employees. 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. The Company met the prescribed performance milestones in fiscal 2014. As of December 31, 2015, approximately 70,000 shares of common stock underlying restricted stock units remain unvested and such restricted stock units will vest subject to service requirements for vesting for these employees. In June 2011, performance-based awards of restricted stock units for the potential issuance of 100,000 shares of common stock was issued to a certain senior executive officer of the Company that would vest upon achievement of prescribed service milestones by the award recipient and performance milestones by the Company. As of December 31, 2015, the Company has met the prescribed milestones for 50,000 shares of this award. The Company modified the performance condition on the 50,000 remaining restricted stock units that were related to this performance award in March 2014 and December 2015, all of which will vest upon achievement of a prescribed service milestone by the award recipients and a performance milestone by the Company. The Company recorded $0.5 million in stock compensation expense related to this accounting modification, which is recorded in selling, general and administrative expenses for the three and nine months ended December 31, 2015. The Company believes that it is probable that the prescribed performance milestones will be met and the compensation expense is being recognized accordingly. Market-Based Awards In June 2015, the Company awarded certain executive officers a total of up to 322,980 market-based restricted share units. These restricted stock units will vest and result in the issuance of common stock based on continuing employment and the relative ranking of the total shareholder return (“TSR”) of the Company’s common stock in relation to the TSR of the component companies in the S&P Health Care Equipment Select Industry Index over a three-year performance period based on a comparison of average closing stock prices between June 2015 and June 2018. The actual number of market-based restricted stock units that may be earned can range from 0% to 300% of the target number of shares. One-half of the market-based restricted stock units earned will vest in June 2018 and the remaining restricted stock units will vest one year thereafter. The Company used a Monte Carlo simulation model to estimate that the grant-date fair value of the restricted stock units. The fair value related to the restricted stock units will be recorded as stock compensation expense over the period from date of grant to June 2019 regardless of the actual TSR outcome achieved. The table below sets forth the assumptions used to value the awards and the estimated grant-date fair value: Risk-free interest rate 1.10 % Dividend yield 0 % Remaining performance period (years) 2.45 Expected volatility 47.2 % Estimated grant date fair value (per share) $ 107.10 Target performance (number of shares) 107,660 |
Income Taxes
Income Taxes | 9 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9. Income Taxes The income tax provision represents the Company’s federal and state income tax obligations as well as foreign tax provisions. The Company’s income tax provision was $6.9 million and $18.5 million for the three and nine months ended December 31, 2015, respectively. The Company’s income tax provision was $1.0 million and $1.6 million for the three and nine months ended December 31, 2014, respectively. The estimated annual effective income tax rate is based upon estimated income before income taxes for the year, the geographical composition of the estimated income before taxes and estimated permanent differences. The estimated annual effective income tax rate can fluctuate and may differ from the actual tax rate recognized in fiscal 2016 for various reasons, including estimates of income before taxes, tax legislation, permanent differences, discrete items, and any adjustments between tax provision calculations and filed tax returns. The significant differences between the statutory tax rate and effective tax rate for the three and nine months ended December 31, 2015 and 2014 were as follows: For the Three Months Ended December 31, For the Nine Months Ended December 31, 2015 2014 2015 2014 Statutory income tax rate 35.0 % 34.0 % 35.0 % 34.0 % Increase (decrease) resulting from: Losses not benefited — (26.6 ) — (24.4 ) Credits (1.7 ) — (1.5 ) — State taxes, net 3.2 — 3.4 — Permanent differences 3.2 — 3.4 — Other — — 0.2 — Effective tax rate 39.7 % 7.4 % 40.5 % 9.6 % The Company and its subsidiaries are subject to U.S. federal income tax, as well as income tax in multiple states and Germany. All tax years remain subject to examination by the Internal Revenue Service and state and foreign tax authorities. The Company has net operating loss and tax credit carryforwards which may be utilized in future years to offset taxable income, and those years may also be subject to review by relevant taxing authorities if the carryforwards are utilized. Fiscal years 2012 through 2015 remain open to examination in Germany. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Dec. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10. Commitments and Contingencies Commitments The Company’s headquarters is located at 22 Cherry Hill Drive in Danvers, Massachusetts and consists of approximately 120,500 square feet of space under an operating lease. The monthly lease payments over the remaining term of the lease are as follows: · The base rent for May 2014 through December 2015 was $74,050 per month; and · The base rent for January 2016 through February 2016 will be $85,818 per month; and · The base rent for March 2016 through February 2018 will be $82,518 per month; and · The base rent for March 2018 through February 2021 will be $85,030 per month. This facility encompasses most of the Company’s U.S. operations, including research and development, manufacturing, sales and marketing and general and administrative departments. On December 9, 2015, the Company entered into a purchase and sale agreement (the “P&S Agreement”) to acquire its existing corporate headquarters space. Pursuant to the P&S Agreement, the Company will, among other things and subject to closing conditions, acquire the real estate commonly known as 18-22 Cherry Hill Drive, located in Danvers, Massachusetts. Subject to the terms and conditions of the P&S Agreement, the purchase price of the property will be $16.5 million. On January 19, 2016, the Company entered into an amendment of the P&S Agreement to extend the due diligence period until April 19, 2016. The Company expects to close the transaction in April 2016. The Company’s European headquarters is located in Aachen, Germany and consists of approximately 33,000 square feet of space under an operating lease. In July 2013, the Company entered into a lease agreement to continue renting its existing space in Aachen, Germany through July 31, 2023. In October 2015, the Company entered into an amendment to this lease agreement to lease 9,000 square feet of additional space effective July 1, 2015. The Company also entered into another lease agreement in October 2015 to lease approximately 30,000 square feet of additional space adjacent to its Aachen facility from July 1, 2015 through June 30, 2016. This agreement also provided the Company with options to extend the lease through July 31, 2033. The lease payments under these agreements are approximately 64,500€ (euro) (approximately U.S. $70,000 at December 31, 2015 exchange rates) per month. The building houses most of the manufacturing operations for the Impella product lines as well as certain research and development functions and the sales, marketing and general and administrative functions for most of its product lines sold in Europe and the Middle East. License Agreements 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 could make additional payments of up to $4.5 million upon the achievement of certain development milestones. In November 2015, the Company entered into an exclusive license agreement for the rights to certain vascular closure device technologies. The Company made a $0.5 million upfront payment upon execution of the agreement and a milestone payment of $0.6 million in December 2015. The Company could make additional payments of up to $2.8 million upon the achievement of certain development milestones. 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 (“Marketing and Labeling Investigation”) focused on the Company’s marketing and labeling of the Impella 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”). 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 materials relating to this matter for the time period of January 1, 2012 through December 31, 2013. The Company is currently in the process of responding to the additional requests for information contained in the CID, and other informal requests, and intends to continue to cooperate with the U.S. Attorney’s Office in connection with the FCA Investigation. In July and August 2015, Thoratec Corporation (“Thoratec”), acquired by St. Jude Medical, Inc. in October 2015, brought actions in connection with two Company patents relevant to Thoratec’s HeartMate PHP medical device (“PHP”). In those proceedings, which are in the United Kingdom and Germany, Thoratec asserts that the two patents are invalid. In September 2015, the Company filed counterclaims in the action in Germany asserting that the PHP product infringes the two patents and a third patent owned by the Company. Both the Germany and United Kingdom proceedings are ongoing. The Company is unable to estimate a potential liability with respect to the legal matters noted above. There are numerous factors that make it difficult to meaningfully estimate possible loss or range of loss at this stage of the legal proceedings, including that the FCA Investigation and patent dispute with Thoratec remain in relatively early stages, there are significant factual and legal issues to be resolved and information obtained or rulings made during any potential lawsuits or investigations could affect the methodology for calculation. Therefore, the Company is unable at this time to estimate a possible loss or range of possible loss, and no adjustment has been made to the financial statements to reflect the outcome of these uncertainties. |
Segment and Enterprise Wide Dis
Segment and Enterprise Wide Disclosures | 9 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
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 consolidated operating results. Approximately 79% and 77% of the Company’s total consolidated assets were located within the U.S. as of December 31, 2015 and March 31, 2015, respectively. The remaining assets were located primarily in Germany and included goodwill and IPR&D assets of $46.5 million and $46.2 million at December 31, 2015 and March 31, 2015, respectively, associated with the Impella Cardiosystems acquisition in May 2005 and the ECP acquisition in July 2014. Total assets outside of the U.S. excluding goodwill and IPR&D assets amounted to 9% and 10% of total consolidated assets as of December 31, 2015 and March 31, 2015, respectively. International sales (primarily in Europe) accounted for 8% of total revenue for each of the three and nine months ended December 31, 2015, and 9% and 10% of total revenue for the three and nine months ended December 31, 2014, respectively. |
Nature of Business and Basis 18
Nature of Business and Basis of Preparation (Policies) | 9 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory, In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805)—Simplifying the Accounting for Measurement-Period Adjustments. The Company is in the process of assessing the impact of the adoption of ASU 2015-16 on its financial position. In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740)—Balance Sheet Classification of Deferred Taxes The FASB is currently working on amendments to existing accounting standards governing a number of areas including, but not limited to, accounting for leases. In May 2013, the FASB issued an ASU (Revised), Leases (Topic 842) Leases |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
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, 2015 and 2014 were as follows (in thousands, except per share data): For the Three Months Ended December 31, For the Nine Months Ended December 31, 2015 2014 2015 2014 Basic Net Income Per Share Net income $ 10,555 $ 12,684 $ 27,149 $ 14,814 Weighted average shares used in computing basic net income per share 42,427 40,856 42,118 40,456 Net income per share - basic $ 0.25 $ 0.31 $ 0.64 $ 0.37 For the Three Months Ended December 31, For the Nine Months Ended December 31, 2015 2014 2015 2014 Diluted Net Income Per Share Net income $ 10,555 $ 12,684 $ 27,149 $ 14,814 Weighted average shares used in computing basic net income per share 42,427 40,856 42,118 40,456 Effect of dilutive securities 2,522 2,028 2,687 1,889 Weighted average shares used in computing diluted net income per share 44,949 42,884 44,805 42,345 Net income per share - diluted $ 0.23 $ 0.30 $ 0.61 $ 0.35 |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
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 |
Estimated Fair Values of the Assets Acquired and Liabilities Assumed | The following table summarizes the 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 1,874 Other assets acquired 141 Total assets acquired 23,176 Liabilities assumed: Accounts payable 295 Accrued liabilities 131 Long-term deferred tax liabilities 1,000 Total liabilities assumed 1,426 Net assets acquired $ 21,750 |
Pro Forma Consolidated Financial Information | For the Three Months Ended December 31, For the Nine Months Ended December 31, 2015 2014 2015 2014 (in $000's) (in $000's) Revenue $ 85,795 $ 62,005 $ 235,586 $ 162,766 Income before income tax provision 17,498 13,665 45,611 16,409 Net income 10,555 12,686 27,149 14,920 |
Marketable Securities and Fai21
Marketable Securities and Fair Value Measurements (Tables) | 9 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Marketable Securities | The Company’s marketable securities at December 31, 2015 and March 31, 2015 are invested in the following: Amortized Gross Unrealized Gross Unrealized Fair Market Cost Gains Losses Value (in $000's) December 31, 2015: US Treasury mutual fund securities $ 19,488 $ — $ — $ 19,488 Short-term government-backed securities 123,499 16 (35 ) 123,480 $ 142,987 $ 16 $ (35 ) $ 142,968 Amortized Gross Unrealized Gross Unrealized Fair Market Cost Gains Losses Value (in $000's) March 31, 2015: US Treasury mutual fund securities $ 19,487 $ — $ — $ 19,487 Short-term government-backed securities 90,070 9 (9 ) 90,070 Long-term government-backed securities 13,999 2 (5 ) 13,996 $ 123,556 $ 11 $ (14 ) $ 123,553 |
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 Total December 31, 2015: (in $000's) Assets U.S. Treasury mutual fund securities $ — $ 19,488 $ — $ 19,488 Short-term government-backed securities — 123,480 — 123,480 Liabilities Contingent consideration — — 7,392 7,392 Level 1 Level 2 Level 3 Total March 31, 2015: (in $000's) Assets U.S. Treasury mutual fund securities $ — $ 19,487 $ — $ 19,487 Short-term government-backed securities — 90,070 — 90,070 Long-term government-backed securities — 13,996 — 13,996 Liabilities Contingent consideration — — 6,510 6,510 |
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, 2015: For the Three Months Ended December 31, For the Nine Months Ended December 31, 2015 2014 2015 2014 (in $000's) (in $000's) Level 3 liabilities, beginning balance $ 6,817 $ 5,797 $ 6,510 $ — Additions — — — 6,000 Payments — — — — Change in fair value 575 568 882 365 Level 3 liabilities, ending balance $ 7,392 $ 6,365 $ 7,392 $ 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 as of December 31, 2015 classified as Level 3: Fair Value at Weighted Average December 31, 2015 Significant (range, if (in $000's) Valuation Methodology Unobservable Input applicable) Contingent consideration $ 7,392 Probability weighted income approach Milestone dates 2018 to 2021 Discount rate 8% to 12% Probability of occurrence Probability adjusted level of 40% for the base case scenario and 5% to 30% for various upside and downside scenarios |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | The components of inventories are as follows: December 31, 2015 March 31, 2015 (in $000's) Raw materials and supplies $ 8,894 $ 7,417 Work-in-progress 10,427 6,466 Finished goods 6,214 2,891 $ 25,535 $ 16,774 |
Goodwill and In-Process Resea23
Goodwill and In-Process Research and Development (Tables) | 9 Months Ended |
Dec. 31, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill Activity | The goodwill activity is as follows: (in $000's) Balance at March 31, 2015 $ 31,534 Foreign currency translation impact 163 Balance at December 31, 2015 $ 31,697 |
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, 2015 are as follows: (in $000's) Balance at March 31, 2015 $ 14,711 Foreign currency translation impact 75 Balance at December 31, 2015 $ 14,786 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Dec. 31, 2015 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | Accrued expenses consist of the following: December 31, 2015 March 31, 2015 (in $000's) Employee compensation $ 14,484 $ 15,978 Research and development 2,495 1,744 Sales and income taxes 1,324 1,506 Professional, legal and accounting fees 1,155 710 Warranty 639 1,103 Other 1,824 853 $ 21,921 $ 21,894 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Dec. 31, 2015 | |
Stock-Based Compensation Recognized | The following table summarizes stock-based compensation expense by financial statement line item in the Company’s condensed consolidated statements of operations for the three and nine months ended December 31, 2015 and 2014: For the Three Months Ended December 31, For the Nine Months Ended December 31, 2015 2014 2015 2014 (in $000's) (in $000's) Cost of product revenue $ 216 $ 160 $ 671 $ 517 Research and development 994 840 2,914 2,466 Selling, general and administrative 4,929 3,382 18,146 9,713 $ 6,139 $ 4,382 $ 21,731 $ 12,696 |
Components of Stock-Based Compensation | The components of stock-based compensation for the three and nine months ended December 31, 2015 and 2014 were as follows: For the Three Months Ended December 31, For the Nine Months Ended December 31, 2015 2014 2015 2014 (in $000's) (in $000's) Restricted stock units $ 5,133 $ 3,640 $ 17,482 $ 10,394 Stock options 909 666 3,955 2,089 Employee stock purchase plan 97 76 294 213 $ 6,139 $ 4,382 $ 21,731 $ 12,696 |
Summary of Stock Option Activity | The following table summarizes the stock option activity for the nine months ended December 31, 2015: Weighted Weighted Average Aggregate Average Remaining Intrinsic Options Exercise Contractual Value (in thousands) Price Term (years) (in thousands) Outstanding at beginning of period 2,892 $ 14.72 5.18 Granted 164 71.15 Exercised (721 ) 11.42 Cancelled and expired (2 ) 13.81 Outstanding at end of period 2,333 $ 19.71 5.35 $ 164,775 Exercisable at end of period 1,690 $ 13.83 4.27 $ 129,224 Options vested and expected to vest at end of period 2,273 $ 19.33 5.27 $ 161,336 |
Summary of Weighted Average Grant-Date Fair Values And Weighted Average Assumptions Used to Calculate Fair Value of Options Granted | The weighted average grant-date fair values and weighted average assumptions used in the calculation of fair value of options granted during the three and nine months ended December 31, 2015 and 2014 was as follows: For the Three Months Ended December 31, For the Nine Months Ended December 31, 2015 2014 2015 2014 Weighted average grant-date fair value $ 34.05 $ 15.36 $ 28.91 $ 9.18 Valuation assumptions: Risk-free interest rate 1.50 % 1.70 % 1.60 % 1.60 % Expected option life (years) 4.15 4.17 4.14 4.19 Expected volatility 49.6 % 49.7 % 49.7 % 49.3 % |
Time Based Restricted Stock and Restricted Stock Units | |
Summary of Restricted Stock and Restricted Stock Units Activity | The following table summarizes the activity of restricted stock and restricted stock units for the nine months ended December 31, 2015: Number of Shares Weighted Average Grant Date Fair Value (in thousands) (per share) Restricted stock and restricted stock units at beginning of period 1,160 $ 21.90 Granted 679 $ 87.95 Vested (465 ) $ 22.65 Forfeited (45 ) $ 15.44 Restricted stock and restricted stock units at end of period 1,329 $ 55.61 |
Restricted stock units | |
Monte Carlo Simulation Model to Estimate Grant-Date Fair Value of Restricted Stock Units | The table below sets forth the assumptions used to value the awards and the estimated grant-date fair value: Risk-free interest rate 1.10 % Dividend yield 0 % Remaining performance period (years) 2.45 Expected volatility 47.2 % Estimated grant date fair value (per share) $ 107.10 Target performance (number of shares) 107,660 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Differences Between Statutory Income Tax Rate and Effective Tax Rates | The significant differences between the statutory tax rate and effective tax rate for the three and nine months ended December 31, 2015 and 2014 were as follows: For the Three Months Ended December 31, For the Nine Months Ended December 31, 2015 2014 2015 2014 Statutory income tax rate 35.0 % 34.0 % 35.0 % 34.0 % Increase (decrease) resulting from: Losses not benefited — (26.6 ) — (24.4 ) Credits (1.7 ) — (1.5 ) — State taxes, net 3.2 — 3.4 — Permanent differences 3.2 — 3.4 — Other — — 0.2 — Effective tax rate 39.7 % 7.4 % 40.5 % 9.6 % |
Computation of Basic and Dilute
Computation of Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Basic Net Income Per Share | ||||
Net income | $ 10,555 | $ 12,684 | $ 27,149 | $ 14,814 |
Weighted average shares used in computing basic net income per share | 42,427 | 40,856 | 42,118 | 40,456 |
Net income per share - basic | $ 0.25 | $ 0.31 | $ 0.64 | $ 0.37 |
Diluted Net Income Per Share | ||||
Net income | $ 10,555 | $ 12,684 | $ 27,149 | $ 14,814 |
Weighted average shares used in computing basic net income per share | 42,427 | 40,856 | 42,118 | 40,456 |
Effect of dilutive securities | 2,522 | 2,028 | 2,687 | 1,889 |
Weighted average shares used in computing diluted net income per share | 44,949 | 42,884 | 44,805 | 42,345 |
Net income per share - diluted | $ 0.23 | $ 0.30 | $ 0.61 | $ 0.35 |
Net Income Per Share - Addition
Net Income Per Share - Additional Information (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from the calculation of diluted weighted average shares outstanding | 14,000 | 1,000 | 7,000 | 36,000 |
Restricted Stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from the calculation of diluted weighted average shares outstanding | 226,000 | 460,000 | 226,000 | 460,000 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) | Jul. 01, 2014 | Dec. 31, 2015 | Dec. 31, 2015 |
Business Acquisition [Line Items] | |||
Payments to acquire businesses, cash paid | $ 15,750,000 | ||
ECP Entwicklungsgesellschaft mbH | |||
Business Acquisition [Line Items] | |||
Business acquisition, date of acquisition agreement | Jul. 1, 2014 | ||
Payments to acquire businesses, cash paid | 13,000,000 | ||
Potential payouts payments | 15,000,000 | ||
Business combination, contingent consideration arrangements, descriptions | 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). | ||
Expense due to infringement of certain patent rights acquired | 7,000,000 | ||
Aggregate worldwide revenues, including revenues of third party licensees, targeted to be met for milestone payments | 125,000,000 | ||
AIS GmbH Aachen Innovative Solutions | |||
Business Acquisition [Line Items] | |||
Business acquisition, date of acquisition agreement | Jun. 30, 2014 | ||
Payments to acquire businesses, cash paid | $ 2,800,000 | ||
ECP Entwicklungsgesellschaft mbH and AIS GmbH Aachen Innovative Solutions | |||
Business Acquisition [Line Items] | |||
Revenues | $ 0 | ||
Net losses | $ 2,800,000 |
Fair Value of the Consideration
Fair Value of the Consideration Transferred (Detail) $ in Thousands | Jul. 01, 2014USD ($) |
Business Combinations [Abstract] | |
Cash consideration | $ 15,750 |
Contingent consideration | 6,000 |
Total consideration transferred | $ 21,750 |
Estimated Fair Values of the As
Estimated Fair Values of the Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Mar. 31, 2015 | Jul. 01, 2014 |
Acquired assets: | |||
Goodwill | $ 31,697 | $ 31,534 | |
Long-term deferred tax assets | $ 43,956 | $ 45,206 | |
ECP Entwicklungsgesellschaft mbH | |||
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 | 1,874 | ||
Other assets acquired | 141 | ||
Total assets acquired | 23,176 | ||
Liabilities assumed: | |||
Accounts payable | 295 | ||
Accrued liabilities | 131 | ||
Long-term deferred tax liabilities | 1,000 | ||
Total liabilities assumed | 1,426 | ||
Net assets acquired | $ 21,750 |
Pro Forma Consolidated Financia
Pro Forma Consolidated Financial Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Business Combinations [Abstract] | ||||
Revenue | $ 85,795 | $ 62,005 | $ 235,586 | $ 162,766 |
Income before income tax provision | 17,498 | 13,665 | 45,611 | 16,409 |
Net income | $ 10,555 | $ 12,686 | $ 27,149 | $ 14,920 |
Investable Marketable Securitie
Investable Marketable Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Mar. 31, 2015 |
US Treasury mutual fund Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Market Value | $ 19,488 | $ 19,487 |
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 | 123,480 | 90,070 |
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 | 13,996 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 142,987 | 123,556 |
Gross Unrealized Gains | 16 | 11 |
Gross Unrealized Losses | (35) | (14) |
Fair Market Value | 142,968 | 123,553 |
Level 2 | US Treasury mutual fund Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 19,488 | 19,487 |
Fair Market Value | 19,488 | 19,487 |
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 | 123,499 | 90,070 |
Gross Unrealized Gains | 16 | 9 |
Gross Unrealized Losses | (35) | (9) |
Fair Market Value | $ 123,480 | 90,070 |
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 | 13,999 | |
Gross Unrealized Gains | 2 | |
Gross Unrealized Losses | (5) | |
Fair Market Value | $ 13,996 |
Financial Instruments Recorded
Financial Instruments Recorded at Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Mar. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | $ 7,392 | $ 6,510 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 142,968 | 123,553 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | 7,392 | 6,510 |
US Treasury mutual fund Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 19,488 | 19,487 |
US Treasury mutual fund Securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 19,488 | 19,487 |
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 | 123,480 | 90,070 |
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 | 13,996 | |
US Government-sponsored Enterprises Debt Securities | Level 2 | Short-term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | $ 123,480 | 90,070 |
US Government-sponsored Enterprises Debt Securities | Level 2 | Long-term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | $ 13,996 |
Change in Fair Value of Conting
Change in Fair Value of Contingent Consideration as Determined by Level 3 Inputs (Detail) - Contingent Consideration - ECP Entwicklungsgesellschaft mbH - Level 3 - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Level 3 liabilities, beginning balance | $ 6,817 | $ 5,797 | $ 6,510 | $ 0 |
Additions | 0 | 0 | 0 | 6,000 |
Payments | 0 | 0 | 0 | 0 |
Change in fair value | 575 | 568 | 882 | 365 |
Level 3 liabilities, ending balance | $ 7,392 | $ 6,365 | $ 7,392 | $ 6,365 |
Quantitative Information about
Quantitative Information about Inputs and Valuation Methodologies Used for Fair Value Measurements Classified in Level 3 (Detail) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | |
Jul. 31, 2014 | Dec. 31, 2015 | Mar. 31, 2015 | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Contingent consideration | $ 7,392 | $ 6,510 | |
Discount rate | 22.50% | ||
Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Contingent consideration | 7,392 | $ 6,510 | |
ECP Entwicklungsgesellschaft mbH | Level 3 | Probability weighted income approach | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Contingent consideration | $ 7,392 | ||
ECP Entwicklungsgesellschaft mbH | Level 3 | Probability weighted income approach | Contingent Consideration | Base Case Scenario | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Probability of occurrence | 40.00% | ||
ECP Entwicklungsgesellschaft mbH | Level 3 | Probability weighted income approach | Minimum | Contingent Consideration | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Milestone date | 2,018 | ||
Discount rate | 8.00% | ||
ECP Entwicklungsgesellschaft mbH | Level 3 | Probability weighted income approach | Minimum | Contingent Consideration | Various Upside and Downside Scenarios | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Probability of occurrence | 5.00% | ||
ECP Entwicklungsgesellschaft mbH | Level 3 | Probability weighted income approach | Maximum | Contingent Consideration | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Milestone date | 2,021 | ||
Discount rate | 12.00% | ||
ECP Entwicklungsgesellschaft mbH | Level 3 | Probability weighted income approach | Maximum | Contingent Consideration | Various Upside and Downside Scenarios | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Probability of occurrence | 30.00% |
Marketable Securities and Fai37
Marketable Securities and Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Jul. 31, 2015 | Mar. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Aggregate carrying amount of other investment | $ 4,422 | $ 3,654 | |
Equity Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cost method investment, fair value | $ 800 |
Components of Inventories (Deta
Components of Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Mar. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 8,894 | $ 7,417 |
Work-in-progress | 10,427 | 6,466 |
Finished goods | 6,214 | 2,891 |
Inventories | $ 25,535 | $ 16,774 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Inventory Disclosure [Abstract] | ||||
Write-down of inventory | $ 404 | $ 576 | $ 1,356 | $ 1,135 |
Goodwill and In-Process Resea40
Goodwill and In-Process Research and Development - Additional Information (Detail) - USD ($) | 1 Months Ended | ||
Jul. 31, 2014 | Dec. 31, 2015 | Mar. 31, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 31,697,000 | $ 31,534,000 | |
Accumulated impairment loss, goodwill | 0 | ||
In-process research and development | $ 18,500,000 | $ 14,786,000 | $ 14,711,000 |
Fair value inputs, discount rate | 22.50% |
Goodwill Activity (Detail)
Goodwill Activity (Detail) $ in Thousands | 9 Months Ended |
Dec. 31, 2015USD ($) | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Beginning balance | $ 31,534 |
Foreign currency translation impact | 163 |
Ending balance | $ 31,697 |
Carrying value of In-Process Re
Carrying value of In-Process Research and Development (Detail) $ in Thousands | 9 Months Ended |
Dec. 31, 2015USD ($) | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Beginning balance | $ 14,711 |
Foreign currency translation impact | 75 |
Ending balance | $ 14,786 |
Accrued Expenses (Detail)
Accrued Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Mar. 31, 2015 |
Payables and Accruals [Abstract] | ||
Employee compensation | $ 14,484 | $ 15,978 |
Research and development | 2,495 | 1,744 |
Sales and income taxes | 1,324 | 1,506 |
Professional, legal and accounting fees | 1,155 | 710 |
Warranty | 639 | 1,103 |
Other | 1,824 | 853 |
Accrued expenses | $ 21,921 | $ 21,894 |
Stock-Based Compensation Recogn
Stock-Based Compensation Recognized (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | $ 6,139 | $ 4,382 | $ 21,731 | $ 12,696 |
Cost of product revenue | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 216 | 160 | 671 | 517 |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 994 | 840 | 2,914 | 2,466 |
Selling, general and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | $ 4,929 | $ 3,382 | $ 18,146 | $ 9,713 |
Components of Stock-Based Compe
Components of Stock-Based Compensation (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | $ 6,139 | $ 4,382 | $ 21,731 | $ 12,696 |
Restricted stock units | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 5,133 | 3,640 | 17,482 | 10,394 |
Stock Options | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 909 | 666 | 3,955 | 2,089 |
Employee Stock Purchase Plan | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | $ 97 | $ 76 | $ 294 | $ 213 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||
Dec. 31, 2015 | Jun. 30, 2015 | May. 31, 2015 | May. 31, 2014 | Mar. 31, 2014 | May. 31, 2013 | Jun. 30, 2011 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Aug. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Stock-based compensation | $ 6,139 | $ 4,382 | $ 21,731 | $ 12,696 | |||||||||
Aggregate intrinsic value of options exercised in period | 50,700 | ||||||||||||
Fair value of options vested in period | 2,500 | ||||||||||||
Restricted stock units | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Stock-based compensation | 5,133 | 3,640 | 17,482 | $ 10,394 | |||||||||
Years of service | 5 years | ||||||||||||
Non-employee director retirement age | 65 years | ||||||||||||
Unrecognized stock-based compensation expense | $ 33,900 | 33,900 | $ 33,900 | ||||||||||
Unrecognized stock-based compensation expense, weighted-average recognition period | 2 years 4 months 24 days | ||||||||||||
Expected dividend yield | 0.00% | ||||||||||||
Weighted average grant-date fair value for restricted stock and restricted stock units granted | $ 87.95 | $ 22.07 | |||||||||||
Fair value of restricted stock and restricted stock units vested in period | $ 10,300 | $ 9,500 | |||||||||||
Stock Options | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Stock-based compensation | 909 | $ 666 | 3,955 | $ 2,089 | |||||||||
Unrecognized stock-based compensation expense | $ 6,300 | $ 6,300 | $ 6,300 | ||||||||||
Unrecognized stock-based compensation expense, weighted-average recognition period | 2 years 4 months 24 days | ||||||||||||
Expected dividend yield | 0.00% | ||||||||||||
Market Based Restricted Stock Units | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Weighted average grant-date fair value for restricted stock and restricted stock units granted | $ 107.10 | ||||||||||||
Restricted share unit issued | 322,980 | ||||||||||||
Market Based Restricted Stock Units | Minimum | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Restricted Share earning | 0.00% | 0.00% | 0.00% | ||||||||||
Market Based Restricted Stock Units | Maximum | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Restricted Share earning | 300.00% | 300.00% | 300.00% | ||||||||||
Performance and Market-Based Restricted Stock Units | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Unrecognized stock-based compensation expense | $ 23,200 | $ 23,200 | $ 23,200 | ||||||||||
Unrecognized stock-based compensation expense, weighted-average recognition period | 2 years 4 months 24 days | ||||||||||||
Performance Based Restricted Stock Units | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Restricted share unit issued | 183,940 | 379,752 | 100,000 | ||||||||||
Non-vested shares, outstanding | 200,000 | 200,000 | 200,000 | ||||||||||
Shares of award granted, upon achievement of service milestone | 50,000 | ||||||||||||
Shares of award granted, it is probable that the prescribed performance targets will be met | 50,000 | 50,000 | |||||||||||
Stock compensation expense related to this accounting modification | $ 500 | ||||||||||||
Performance Based Restricted Stock Units Issued in May 2013 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Restricted share unit issued | 268,988 | ||||||||||||
Non-vested shares, outstanding | 70,000 | 70,000 | 70,000 | ||||||||||
Chief Financial Officer | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Employment retirement date | Jul. 31, 2015 | ||||||||||||
Stock-based compensation | $ 2,500 | ||||||||||||
Consultant service ending date | Jul. 31, 2017 | ||||||||||||
Non-employee directors | Restricted stock units | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Stock-based compensation | $ 1,400 | $ 2,000 | |||||||||||
Equity award, restricted stocks available for grant | 3,900 | ||||||||||||
Equity award, vesting options | Vest on the earlier of: (a) the one year anniversary of the grant date; or (b) the next annual meeting of stockholders. | ||||||||||||
Executive Office | Market Based Restricted Stock Units | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Restricted share unit issued | 322,980 |
Summary of Stock Option Activit
Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Mar. 31, 2015 | |
Options | ||
Outstanding at beginning of period | 2,892 | |
Granted | 164 | |
Exercised | (721) | |
Cancelled and expired | (2) | |
Outstanding at end of period | 2,333 | 2,892 |
Exercisable at end of period | 1,690 | |
Options vested and expected to vest at end of period | 2,273 | |
Weighted-Average Exercise Price | ||
Outstanding at beginning of period | $ 14.72 | |
Granted | 71.15 | |
Exercised | 11.42 | |
Cancelled and expired | 13.81 | |
Outstanding at end of period | 19.71 | $ 14.72 |
Exercisable at end of period | 13.83 | |
Options vested and expected to vest at end of period | $ 19.33 | |
Weighted-Average Remaining Contractual Term (years) | ||
Outstanding | 5 years 4 months 6 days | 5 years 2 months 5 days |
Exercisable at end of period | 4 years 3 months 7 days | |
Options vested and expected to vest at end of period | 5 years 3 months 7 days | |
Aggregate Intrinsic Value | ||
Outstanding at end of period | $ 164,775 | |
Exercisable at end of period | 129,224 | |
Options vested and expected to vest at end of period | $ 161,336 |
Summary of Weighted Average Gra
Summary of Weighted Average Grant-Date Fair Values And Weighted Average Assumptions Used to Calculate Fair Value of Options Granted (Detail) - Stock Options - $ / shares | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Weighted average grant-date fair value | $ 34.05 | $ 15.36 | $ 28.91 | $ 9.18 |
Valuation assumptions: | ||||
Risk-free interest rate | 1.50% | 1.70% | 1.60% | 1.60% |
Expected option life (years) | 4 years 1 month 24 days | 4 years 2 months 1 day | 4 years 1 month 21 days | 4 years 2 months 9 days |
Expected volatility | 49.60% | 49.70% | 49.70% | 49.30% |
Summary of Restricted Stock and
Summary of Restricted Stock and Time Based Restricted Stock Units Activity (Detail) - Restricted Stock and Restricted Stock Units shares in Thousands | 9 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Number of Shares | |
Beginning Balance | shares | 1,160 |
Granted | shares | 679 |
Vested | shares | (465) |
Forfeited | shares | (45) |
Ending Balance | shares | 1,329 |
Weighted Average Grant Date Fair Value | |
Beginning Balance | $ / shares | $ 21.90 |
Granted | $ / shares | 87.95 |
Vested | $ / shares | 22.65 |
Forfeited | $ / shares | 15.44 |
Ending Balance | $ / shares | $ 55.61 |
Monte Carlo Simulation Model to
Monte Carlo Simulation Model to Estimate Grant-Date Fair Value of Restricted Stock Units (Detail) - Restricted stock units | 9 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 1.10% |
Dividend yield | 0.00% |
Remaining performance period (years) | 2 years 5 months 12 days |
Expected volatility | 47.20% |
Estimated grant date fair value (per share) | $ / shares | $ 107.10 |
Target performance (number of shares) | shares | 107,660 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision | $ 6,943 | $ 1,017 | $ 18,462 | $ 1,579 |
Differences Between Statutory I
Differences Between Statutory Income Tax Rate and Effective Tax Rates (Detail) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Statutory income tax rate | 35.00% | 34.00% | 35.00% | 34.00% |
Losses not benefited | (26.60%) | (24.40%) | ||
Credits | (1.70%) | (1.50%) | ||
State taxes, net | 3.20% | 3.40% | ||
Permanent differences | 3.20% | 3.40% | ||
Other | 0.20% | |||
Effective tax rate | 39.70% | 7.40% | 40.50% | 9.60% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | Dec. 09, 2015USD ($) | Oct. 31, 2015ft² | Sep. 30, 2015Patent | Jul. 31, 2013ft² | Dec. 31, 2015USD ($)ft² | Dec. 31, 2015EUR (€)ft² | Apr. 30, 2014USD ($) |
Commitments and Contingencies [Line Items] | |||||||
Office space under operating lease | ft² | 120,500 | 120,500 | |||||
Purchase price of property amount | $ 16,500,000 | ||||||
Transaction closing date for purchasing of property | 2016-04 | ||||||
License agreement, upfront payment | $ 500,000 | $ 1,500,000 | |||||
License agreement, maximum agreed additional payments upon achievement of development milestones | 2,800,000 | $ 4,500,000 | |||||
License agreement, milestone payment | 600,000 | ||||||
Patents allegedly infringed upon, number | Patent | 2 | ||||||
Europe | |||||||
Commitments and Contingencies [Line Items] | |||||||
Facilities leases, base rent per month | 70,000 | € 64,500 | |||||
Europe | Lease Agreements | |||||||
Commitments and Contingencies [Line Items] | |||||||
Office space under operating lease | ft² | 33,000 | ||||||
Lease, expiration date | Jul. 31, 2023 | ||||||
Additional office space under operating lease | ft² | 9,000 | ||||||
Europe | Lease Agreement Adjacent to Aachen Facility | |||||||
Commitments and Contingencies [Line Items] | |||||||
Office space under operating lease | ft² | 30,000 | ||||||
Lease, expiration date | Jun. 30, 2016 | ||||||
For May 2014 through December 2015 | |||||||
Commitments and Contingencies [Line Items] | |||||||
Facilities leases, base rent per month | 74,050 | ||||||
For January 2016 through February 2016 | |||||||
Commitments and Contingencies [Line Items] | |||||||
Facilities leases, base rent per month | 85,818 | ||||||
For March 2016 through February 2018 | |||||||
Commitments and Contingencies [Line Items] | |||||||
Facilities leases, base rent per month | 82,518 | ||||||
For March 2018 through February 2021 | |||||||
Commitments and Contingencies [Line Items] | |||||||
Facilities leases, base rent per month | $ 85,030 |
Segment and Enterprise Wide D54
Segment and Enterprise Wide Disclosures - Additional Information (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2015USD ($) | Dec. 31, 2014 | Dec. 31, 2015USD ($)Segment | Dec. 31, 2014 | Mar. 31, 2015USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of business segments | Segment | 1 | ||||
Goodwill | $ 31,697 | $ 31,697 | $ 31,534 | ||
United States | |||||
Segment Reporting Information [Line Items] | |||||
Percentage of total consolidated assets | 79.00% | 79.00% | 77.00% | ||
Europe | |||||
Segment Reporting Information [Line Items] | |||||
Goodwill | $ 46,500 | $ 46,500 | $ 46,200 | ||
International | |||||
Segment Reporting Information [Line Items] | |||||
Percentage of total consolidated assets, excluding goodwill | 9.00% | 9.00% | 10.00% | ||
Percentage of total product revenue | 8.00% | 9.00% | 8.00% | 10.00% |