Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2016 | May. 12, 2016 | Sep. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Mar. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ABMD | ||
Entity Registrant Name | ABIOMED INC | ||
Entity Central Index Key | 815,094 | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 42,735,136 | ||
Entity Public Float | $ 3,934,644,424 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 48,231 | $ 22,401 |
Short-term marketable securities | 163,822 | 109,557 |
Accounts receivable, net | 42,821 | 31,828 |
Inventories | 26,740 | 16,774 |
Prepaid expenses and other current assets | 6,778 | 4,479 |
Total current assets | 288,392 | 185,039 |
Long-term marketable securities | 1,000 | 13,996 |
Property and equipment, net | 23,184 | 9,127 |
Goodwill | 33,003 | 31,534 |
In-process research and development | 15,396 | 14,711 |
Long-term deferred tax assets, net | 58,534 | 80,306 |
Other assets | 4,422 | 3,654 |
Total assets | 423,931 | 338,367 |
Current liabilities: | ||
Accounts payable | 9,381 | 10,389 |
Accrued expenses | 28,382 | 21,894 |
Deferred revenue | 8,778 | 7,036 |
Total current liabilities | 46,541 | 39,319 |
Other long-term liabilities | 220 | 183 |
Contingent consideration | 7,563 | 6,510 |
Long-term deferred tax liabilities | 832 | 795 |
Total liabilities | $ 55,156 | $ 46,807 |
Commitments and contingencies (Note 12) | ||
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 - 43,973,119 shares at March 31, 2016 and 42,618,717 shares at March 31, 2015; Outstanding - 42,596,228 shares at March 31, 2016 and 41,335,773 shares at March 31, 2015 | $ 426 | $ 413 |
Additional paid in capital | 508,624 | 465,046 |
Accumulated deficit | (99,075) | (137,222) |
Treasury stock at cost - 1,376,891 shares at March 31, 2016 and 1,282,944 shares at March 31, 2015 | (26,660) | (19,347) |
Accumulated other comprehensive loss | (14,540) | (17,330) |
Total stockholders' equity | 368,775 | 291,560 |
Total liabilities and stockholders' equity | $ 423,931 | $ 338,367 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2016 | 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 | 43,973,119 | 42,618,717 |
Common stock, Outstanding | 42,596,228 | 41,335,773 |
Treasury stock, shares | 1,376,891 | 1,282,944 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | ||
Revenue: | ||||
Product revenue | $ 329,520 | $ 229,950 | $ 183,280 | |
Funded research and development | 23 | 361 | 363 | |
Total Revenue | 329,543 | 230,311 | 183,643 | |
Costs and expenses: | ||||
Cost of product revenue | 50,419 | 39,945 | 37,322 | |
Research and development | 49,759 | 35,973 | 30,707 | |
Selling, general and administrative | 164,261 | 125,727 | 107,251 | |
Costs and Expenses, Total | 264,439 | 201,645 | 175,280 | |
Income from operations | 65,104 | 28,666 | 8,363 | |
Other income: | ||||
Investment income, net | 395 | 196 | 118 | |
Other income (expense), net | 339 | (97) | 49 | |
Nonoperating Income (Expense), Total | 734 | 99 | 167 | |
Income before income taxes | 65,838 | 28,765 | 8,530 | |
Income tax provision (benefit) | 27,691 | (84,923) | [1] | 1,179 |
Net income | $ 38,147 | $ 113,688 | $ 7,351 | |
Basic net income per share | $ 0.90 | $ 2.80 | $ 0.19 | |
Basic weighted average shares outstanding | 42,204 | 40,632 | 39,334 | |
Diluted net income per share | $ 0.85 | $ 2.65 | $ 0.18 | |
Diluted weighted average shares outstanding | 44,895 | 42,858 | 41,606 | |
[1] | Income tax benefit for the quarter and year ended March 31, 2015 were impacted by the release of the $101.5 million valuation allowance on certain deferred tax assets. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 38,147 | $ 113,688 | $ 7,351 |
Other comprehensive income (loss): | |||
Foreign currency translation gains (losses) | 2,724 | (16,613) | 3,025 |
Net unrealized gain (losses) on marketable securities | 66 | 13 | (18) |
Other comprehensive income (loss) | 2,790 | (16,600) | 3,007 |
Comprehensive income | $ 40,937 | $ 97,088 | $ 10,358 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid in Capital | Accumulated Deficit | Accumulated Other Comprehensive (Loss) Income |
Beginning Balance at Mar. 31, 2013 | $ 137,080 | $ 397 | $ (16,129) | $ 414,810 | $ (258,261) | $ (3,737) |
Beginning Balance (in shares) at Mar. 31, 2013 | 38,601,384 | 1,186,999 | ||||
Restricted stock issued | $ 3 | (3) | ||||
Restricted stock issued (in shares) | 254,991 | |||||
Stock options exercised | 9,360 | $ 11 | 9,349 | |||
Stock options exercised (in shares) | 1,029,024 | |||||
Stock issued under employee stock purchase plan | 697 | 697 | ||||
Stock issued under employee stock purchase plan (in shares) | 43,779 | |||||
Stock issued to directors | 65 | 65 | ||||
Stock issued to directors (in shares) | 6,518 | |||||
Return of common stock to pay withholding taxes on restricted stock | (425) | $ (425) | ||||
Return of common stock to pay withholding taxes on restricted stock (in shares) | (19,368) | 19,368 | ||||
Stock compensation expense | 11,218 | 11,218 | ||||
Other comprehensive income (loss) | 3,007 | 3,007 | ||||
Net income | 7,351 | 7,351 | ||||
Ending Balance at Mar. 31, 2014 | 168,353 | $ 411 | $ (16,554) | 436,136 | (250,910) | (730) |
Ending Balance (in shares) at Mar. 31, 2014 | 39,916,328 | 1,206,367 | ||||
Restricted stock issued | $ 5 | (5) | ||||
Restricted stock issued (in shares) | 543,420 | |||||
Stock options exercised | 10,927 | $ 9 | 10,918 | |||
Stock options exercised (in shares) | 911,553 | |||||
Stock issued under employee stock purchase plan | 795 | 795 | ||||
Stock issued under employee stock purchase plan (in shares) | 39,095 | |||||
Stock issued to directors | 76 | 76 | ||||
Stock issued to directors (in shares) | 1,954 | |||||
Return of common stock to pay withholding taxes on restricted stock | (2,805) | $ (12) | $ (2,793) | |||
Return of common stock to pay withholding taxes on restricted stock (in shares) | (76,577) | 76,577 | ||||
Stock compensation expense | 16,520 | 16,520 | ||||
Excess tax benefit from stock-based awards | 606 | 606 | ||||
Other comprehensive income (loss) | (16,600) | (16,600) | ||||
Net income | 113,688 | 113,688 | ||||
Ending Balance at Mar. 31, 2015 | $ 291,560 | $ 413 | $ (19,347) | 465,046 | (137,222) | (17,330) |
Ending Balance (in shares) at Mar. 31, 2015 | 41,335,773 | 41,335,773 | 1,282,944 | |||
Restricted stock issued | $ 5 | (5) | ||||
Restricted stock issued (in shares) | 507,471 | |||||
Stock options exercised | $ 9,771 | $ 8 | 9,763 | |||
Stock options exercised (in shares) | 829,000 | 829,385 | ||||
Stock issued under employee stock purchase plan | $ 1,135 | 1,135 | ||||
Stock issued under employee stock purchase plan (in shares) | 16,772 | |||||
Stock issued to directors | 65 | 65 | ||||
Stock issued to directors (in shares) | 774 | |||||
Return of common stock to pay withholding taxes on restricted stock | (7,313) | $ (7,313) | ||||
Return of common stock to pay withholding taxes on restricted stock (in shares) | (93,947) | 93,947 | ||||
Stock compensation expense | 29,053 | 29,053 | ||||
Excess tax benefit from stock-based awards | 3,567 | 3,567 | ||||
Other comprehensive income (loss) | 2,790 | 2,790 | ||||
Net income | 38,147 | 38,147 | ||||
Ending Balance at Mar. 31, 2016 | $ 368,775 | $ 426 | $ (26,660) | $ 508,624 | $ (99,075) | $ (14,540) |
Ending Balance (in shares) at Mar. 31, 2016 | 42,596,228 | 42,596,228 | 1,376,891 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Operating activities: | |||
Net income | $ 38,147 | $ 113,688 | $ 7,351 |
Adjustments required to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 3,277 | 2,770 | 2,508 |
Bad debt expense | 42 | (5) | 47 |
Stock-based compensation | 29,053 | 16,520 | 11,218 |
Write-down of inventory | 2,094 | 2,231 | 2,012 |
Excess tax benefit from stock-based awards | (3,567) | (606) | |
Deferred tax provision (benefit) | 22,296 | (87,094) | 860 |
Change in fair value of contingent consideration | 1,053 | 510 | |
Changes in assets and liabilities: | |||
Accounts receivable | (10,930) | (7,970) | (1,312) |
Inventories | (11,473) | (6,967) | (622) |
Prepaid expenses and other assets | (2,290) | (1,479) | (1,039) |
Accounts payable | (2,645) | 3,372 | (54) |
Accrued expenses and other liabilities | 10,020 | 6,011 | 1,938 |
Deferred revenue | 1,718 | 2,309 | 559 |
Net cash provided by operating activities | 76,795 | 43,290 | 23,466 |
Investing activities: | |||
Purchases of marketable securities | (260,975) | (97,658) | (87,026) |
Proceeds from the sale and maturity of marketable securities | 219,639 | 71,530 | 68,265 |
Acquisition of ECP and AIS, net of cash assumed | (15,697) | ||
Purchase of other investment | (750) | (2,850) | (750) |
Purchases of property and equipment | (15,624) | (5,188) | (2,761) |
Net cash used for investing activities | (57,710) | (49,863) | (22,272) |
Financing activities: | |||
Proceeds from the exercise of stock options | 9,771 | 10,927 | 9,360 |
Excess tax benefit from stock-based awards | 3,567 | 606 | |
Taxes paid related to net share settlement upon vesting of stock awards | (7,313) | (2,805) | (425) |
Proceeds from the issuance of stock under employee stock purchase plan | 1,135 | 795 | 697 |
Net cash provided by financing activities | 7,160 | 9,523 | 9,632 |
Effect of exchange rate changes on cash | (415) | (1,465) | 639 |
Net increase in cash and cash equivalents | 25,830 | 1,485 | 11,465 |
Cash and cash equivalents at beginning of year | 22,401 | 20,916 | 9,451 |
Cash and cash equivalents at end of year | 48,231 | 22,401 | 20,916 |
Supplemental disclosure of cash flow information: | |||
Cash paid for income taxes | 848 | 1,215 | 1,324 |
Supplemental disclosure of non-cash investing and financing activities: | |||
Property and equipment in accounts payable and accrued expenses | $ 1,797 | 193 | $ 60 |
Contingent consideration related to acquisition of ECP | $ 6,000 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Nature of Operations | Note 1. Nature of Operations Abiomed, Inc. (the “Company” or “Abiomed”) 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies The accompanying consolidated financial statements reflect the application of certain significant accounting policies described below. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles of the United States of America, or GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. The Company bases its estimates on historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. On an ongoing basis, the Company evaluates its estimates, including those related to revenue recognition, collectability of receivables, realizability of inventory, goodwill, intangible and long-lived assets, accrued expenses, stock-based compensation, income taxes including deferred tax assets and liabilities, contingencies and litigation. Provisions for depreciation are based on their estimated useful lives using the straight-line method. Some of these estimates can be subjective and complex and, consequently, actual results may differ from these estimates under different assumptions or conditions. Cash Equivalents and Marketable Securities The Company classifies any marketable security with a maturity date of 90 days or less at the time of purchase as a cash equivalent. Cash equivalents are carried on the balance sheet at fair market value. The Company classifies any security with a maturity date of greater than 90 days at the time of purchase as marketable securities and classifies marketable securities with a maturity date of greater than one year from the balance sheet date as long-term marketable securities. Securities that the Company has the positive intent and ability to hold to maturity are reported at amortized cost and classified as held-to-maturity securities. If the Company does not have the intent and ability to hold a security to maturity, it reports the investment as available-for-sale securities. The Company reports available-for-sale securities at fair value, and includes unrealized gains and, to the extent deemed temporary, unrealized losses in stockholders’ equity. If any adjustment to fair value reflects a decline in the value of the investment, the Company considers available evidence to evaluate whether the decline is “other than temporary” and, if so, marks the security to market through a charge to unrealized loss on short-term marketable securities in the consolidated statements of operations. Major Customers and Concentrations of Credit Risk The Company primarily sells its products to hospitals and distributors. No customer accounted for more than 10% of total product revenues in fiscal years ended March 31, 2016, 2015 or 2014. No individual customer had an accounts receivable balance greater than 10% of total accounts receivable at March 31, 2016 and 2015. Credit is extended based on an evaluation of a customer’s financial condition and generally collateral is not required. To date, credit losses have not been significant and the Company maintains an allowance for doubtful accounts based on its assessment of the collectability of accounts receivable. Receivables are geographically dispersed, primarily throughout the U.S., as well as in Europe and other foreign countries where formal distributor agreements exist. Financial instruments which potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents, short and long-term marketable securities and accounts receivable. Management mitigates credit risk by limiting the investment type and maturity to securities that preserve capital, maintain liquidity and have a high credit quality. Financial Instruments The Company’s financial instruments are comprised of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses, the carrying amounts of which approximate fair market value as they are highly liquid and primarily short term in nature. Inventories Inventories are stated at the lower of cost or market. Cost is based on the first in, first out method. The Company regularly reviews inventory quantities on hand and writes down to its net realizable value any inventory that it believes to be impaired. Management considers forecast demand in relation to the inventory on hand, competitiveness of product offerings, market conditions and product life cycles when determining excess and obsolescence and net realizable value adjustments. Once inventory is written down and a new cost basis is established, it is not written back up if demand increases. Property and Equipment Property and equipment is recorded at cost less accumulated depreciation. Depreciation is computed using the straight line method based on estimated useful lives of three to five years for machinery and equipment, computer software, and furniture and fixtures. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or the estimated useful lives of the related assets. Expenditures for maintenance and repairs are expensed as incurred. Upon retirement or other disposition of assets, the costs and related accumulated depreciation are eliminated from the accounts and the resulting gain or loss is reflected in operating expenses. Property and equipment is reviewed for impairment losses whenever events or changes in circumstances indicate the carrying amount may not be recoverable. An impairment loss would be recognized based on the amount by which the carrying value of the asset or asset group exceeds its fair value. Fair value is determined primarily using the estimated future cash flows associated with the asset or asset group under review discounted at a rate commensurate with the risk involved and other valuation techniques. Goodwill Goodwill is recorded when consideration for an acquisition exceeds the fair value of the net tangible and intangible assets acquired. Goodwill is not amortized, instead the Company evaluates goodwill for impairment at least annually at October 31, as well as whenever events or changes in circumstances suggest that the carrying amount may not be recoverable. Goodwill impairment assessments are performed at the reporting unit level. The goodwill test involves a two-step process. The first step is a comparison of the reporting unit’s fair value to its carrying value. If the reporting unit’s fair value exceeds its carrying value, no further procedures are required. However, if the reporting unit’s fair value is less than the carrying value, an impairment of goodwill may exist, requiring a second step to measure the amount of impairment loss. If the implied fair value of goodwill is less than the recorded goodwill, an impairment charge is recorded for the difference. In applying the goodwill impairment test, the Company may assess qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value (“Step 0”). Qualitative factors may include, but are not limited to, macroeconomic conditions, industry conditions, the competitive environment, changes in the market for our products and services, regulatory and political developments, cost factors, and entity specific factors such as strategies and overall financial performance. If, after assessing these qualitative factors, the Company determines it is not more likely than not that the fair value of a reporting unit is less than its carry amount, then performing the two-step impairment test is unnecessary. The goodwill impairment test is performed at the reporting unit level by comparing the reporting unit’s carrying amount, including goodwill, to the fair value of the reporting unit. The Company estimates the fair value of its single reporting unit using a combination of the income approach and the market approach. The income approach incorporates the use of a discounted cash flow method in which the estimated future cash flows and terminal values for the reporting unit is discounted to a present value using an appropriate discount rate. Cash flow projections are based on management’s estimates of economic and market conditions which drive key assumptions of revenue growth rates, operating margins, cash flows, capital expenditures and working capital requirements. The discount rate is based on the specific risk characteristics of the reporting unit and its underlying forecast. The market approach estimates fair value by comparing publicly traded companies with similar operating and investment characteristics as the reporting unit. The fair values determined by the market approach and income approach, are weighted to determine the fair value for the reporting unit based primarily on the similarity of the operating and investment characteristics of the reporting unit to the comparable publicly traded companies used in the market approach. In-Process Research and Development In-process research and development, or IPR&D, assets are considered to be indefinite-lived until the completion or abandonment of the associated research and development projects. IPR&D assets represent the fair value assigned to technologies that are acquired, which at the time of acquisition have not reached technological feasibility and have no alternative future use. During the period that the IPR&D assets are considered indefinite-lived, they are tested for impairment on an annual basis, or more frequently if the Company becomes aware of any events occurring or changes in circumstances that indicate that the fair value of the IPR&D assets are less than their carrying amounts. If and when development is complete, which generally occurs upon regulatory approval and are able to commercialize products associated with the IPR&D assets, these assets are then deemed definite-lived and are amortized based on their estimated useful lives at that point in time. If development is terminated or abandoned, the Company may have a full or partial impairment charge related to the IPR&D assets, calculated as the excess of carrying value of the IPR&D assets over fair value. Contingent Consideration Contingent consideration is recorded as a liability and is the estimate of the fair value of potential milestone payments related to business acquisitions. Contingent consideration is measured at fair value using a discounted cash flow model utilizing significant unobservable inputs including the probability of achieving each of the potential milestones and an estimated discount rate associated with the risks of the expected cash flows attributable to the various milestones. Significant increases or decreases in any of the probabilities of success or changes in expected timelines for achievement of any of these milestones could result in a significantly higher or lower fair value of the liability. The fair value of the contingent consideration at each reporting date is updated by reflecting the changes in fair value reflected within research and development expenses in our statement of operations. Accrued Expenses As part of the process of preparing its financial statements, the Company is required to estimate accrued expenses. This process includes identifying services that third parties have performed and estimating the level of service performed and the associated cost incurred on these services as of each balance sheet date in its financial statements. Examples of estimated accrued expenses include contract service fees, such as amounts due to clinical research organizations, investigators in conjunction with clinical trials, professional service fees, such as attorneys and accountants, and third party expenses relating to marketing efforts associated with commercialization of the Company’s product and product candidates. Accrued expenses also include estimates for payroll costs, such as bonuses and commissions. In the event that the Company does not identify certain costs that have been incurred or it under or over-estimates the level of services or the costs of such services, reported expenses for a reporting period could be overstated or understated. The dates in which certain services commence and end, the level of services performed on or before a given date and the cost of services is often subject to the Company’s judgment. The Company makes these judgments and estimates based upon known facts and circumstances. Revenue Recognition The Company recognizes revenue when evidence of an arrangement exists, title has passed or services have been rendered, the selling price is fixed or determinable and collectability is reasonably assured. Revenue from product sales to customers is recognized when delivery has occurred. All costs related to product sales are recognized at time of delivery. The Company does not provide for rights of return to customers on product sales and therefore does not record a provision for returns. Maintenance and service support contract revenues are included in product sales and are recognized ratably over the term of the service contracts. Revenue is recognized as earned in limited instances where the Company rents its console medical devices on a month-to-month basis or for a longer specified period of time to customers. Government-sponsored research and development contracts and grants generally provide for payment on a cost-plus-fixed-fee basis. Revenues from these contracts and grants are recognized as work is performed, provided the government has appropriated sufficient funds for the work. Under contracts in which the Company elects to spend significantly more on the development project during the term of the contract than the total contract amount, the Company prospectively recognizes revenue on such contracts ratably over the term of the contract as related research and development costs are incurred. Product Warranty The Company generally provides a one-year warranty for certain products sold in which estimated contractual warranty obligations are recorded as an expense at the time of shipment and are included in accrued expenses in the accompanying consolidated balance sheets. The Company’s products are subject to regulatory and quality standards. Future warranty costs are estimated based on historical product performance rates and related costs to repair given products. The accounting estimate related to product warranty expense involves judgment in determining future estimated warranty costs. Should actual performance rates or repair costs differ from estimates, revisions to the estimated warranty liability would be required. Accumulated Other Comprehensive Income (Loss) Comprehensive income (loss) is comprised of net income, plus all changes in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources, including any foreign currency translation adjustments. These changes in equity are recorded as adjustments to accumulated other comprehensive income (loss) in the Company’s consolidated balance sheet. The components of accumulated other comprehensive income (loss) consist primarily of foreign currency translation adjustments. There were no reclassifications out of accumulated other comprehensive income (loss) during the fiscal years ended March 31, 2016, 2015 and 2014. Translation of Foreign Currencies The functional currency of the Company’s foreign subsidiaries is their local currency. The assets and liabilities of the Company’s foreign subsidiaries are translated into U.S. dollars at exchange rates in effect at the balance sheet date. Income and expense items are translated at the average exchange rates prevailing during the period. The cumulative translation effect for subsidiaries using a functional currency other than the U.S. dollar is included in accumulated other comprehensive income or loss as a separate component of stockholders’ equity. The Company’s intercompany accounts are denominated in the functional currency of the foreign subsidiary. Gains and losses resulting from the remeasurement of intercompany receivables that the Company considers to be of a long-term investment nature are recorded in accumulated other comprehensive income or loss as a separate component of stockholders’ equity, while gains and losses resulting from the remeasurement of intercompany receivables from those foreign subsidiaries for which the Company anticipates settlement in the foreseeable future are recorded in the consolidated statement of operations. The net foreign currency translation gains and losses recorded in the consolidated statements of operations for the fiscal years ended March 31, 2016, 2015 and 2014 were not significant. 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 fiscal year. Diluted net income per share is computed using the treasury stock method by dividing net income by the weighted average number of dilutive common shares outstanding during the fiscal year. Diluted shares outstanding is calculated by adding to the weighted average shares outstanding any potential dilutive securities outstanding for the fiscal year. Potential dilutive securities include stock options, restricted stock awards, restricted stock units, performance-based awards and shares to be purchased under the employee stock purchase plan. In fiscal years 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. Fiscal Years Ended March 31, 2016 2015 2014 Basic Net Income Per Share Net income $ 38,147 $ 113,688 $ 7,351 Weighted average shares used in computing basic net income per share 42,204 40,632 39,334 Net income per share - basic $ 0.90 $ 2.80 $ 0.19 Fiscal Years Ended March 31, 2016 2015 2014 Diluted Net Income Per Share Net income $ 38,147 $ 113,688 $ 7,351 Weighted average shares used in computing basic net income per share 42,204 40,632 39,334 Effect of dilutive securities 2,691 2,226 2,272 Weighted average shares used in computing diluted net income per share 44,895 42,858 41,606 Net income per share - diluted $ 0.85 $ 2.65 $ 0.18 For the fiscal years ended March 31, 2016, 2015 and 2014, approximately 62,000, 2,000 and 94,000 shares of common stock underlying outstanding securities primarily related to out-of-the-money stock options and performance-based awards where milestones were not met were not included in the computation of diluted earnings per share because their inclusion would be anti-dilutive. Stock-Based Compensation The Company’s stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as an expense over the requisite service period, and includes an estimate of awards that will be forfeited. The fair value of stock option grants is estimated using the Black-Scholes option pricing model. Use of the valuation model requires management to make certain assumptions with respect to selected model inputs. 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 historical volatility of the Company’s stock. The Company estimates the expected term of options based on historical exercise experience and estimates of future exercises of unexercised options. In addition, an expected dividend yield of zero is used in the option valuation model because the Company does not pay dividends and does not expect to pay any cash dividends in the foreseeable future. Forfeitures are estimated based on an analysis of actual forfeitures, adjusted to the extent historical forfeitures may not be indicative of expected forfeitures in the future. For awards with service conditions only, the Company recognizes compensation cost on a straight-line basis over the requisite service period. For awards with service and performance conditions, the Company recognizes compensation costs using the graded vesting method over the requisite service period. Estimates of stock-based compensation expense for an award with performance conditions are based on the probable outcome of the performance conditions. The cumulative effect of changes in the probability outcomes are recorded in the period in which the changes occur. For awards with market-based conditions, the Company uses a Monte Carlo simulation model to estimate that the grant-date fair value. The fair value related to market-based awards are recorded as stock-based compensation expense over the vesting period regardless of whether the market condition is achieved or not. Income Taxes The Company’s provision for income taxes is comprised of a current and a deferred provision. The current income tax provision is calculated as the estimated taxes payable or refundable on income tax returns for the current fiscal year. The deferred income tax provision is calculated for the estimated future income tax effects attributable to temporary differences and carryforwards using expected tax rates in effect in the years during which the differences are expected to reverse. Deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each fiscal year end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to impact taxable income. The Company regularly assesses its ability to realize its deferred tax assets. Assessing the realization of deferred tax assets requires significant management judgment. Valuation allowances are established when necessary to reduce net deferred tax assets to the amount that is more likely than not to be realized. The Company recognizes and measures uncertain tax positions using a two-step approach. The first step is to evaluate the tax position for recognition by determining if, based on the technical merits, it is more likely than not that the position will be sustained upon audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit at the largest amount that is more than 50% likely of being realized upon ultimate settlement. The Company reevaluates these uncertain tax positions on a quarterly basis. This evaluation is based on factors including, but not limited to, changes in facts or circumstances, changes in tax laws, effectively settled issues under audit and new audit activity. Any changes in these factors could result in the recognition of a tax benefit or an additional charge to the tax provision. When applicable, the Company accrues for the effects of uncertain tax positions and the related potential penalties and interest through income tax expense. As of March 31, 2016, the Company has no material uncertain tax positions and no interest and penalties have been recognized to date. 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 does not expect the adoption of ASU 2015-16 to have a material impact on its consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740)—Balance Sheet Classification of Deferred Taxes Adoption of this standard did not impact the Company’s results of operations, retained earnings, or cash flows in the current or previous interim and annual reporting periods. In February 2016, the FASB issued ASU 2016-02, Leases In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting The Company is currently evaluating the impact of adopting ASU 2016-09 on its consolidated financial statements. |
Acquisitions
Acquisitions | 12 Months Ended |
Mar. 31, 2016 | |
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 (in thousands): Total Acquisition Date Fair Value 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 assets (“IPR&D”) is principally the estimated fair value of the ECP and AIS technology which had not reached commercial technological feasibility nor had alternative future use at the time of the acquisition and therefore the Company has considered as 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. All legal, consulting and other costs related to the acquisition, aggregating approximately $1.1 million, have been expensed as incurred and are included in selling, general and administrative expenses in the Company’s consolidated statements of operations. The results of operations for ECP and AIS are included in the Company’s consolidated statements of operations for the period from the July 1, 2014 acquisition date to March 31, 2016. The Company has no material external revenues and incurred $3.7 million and $2.3 million in net losses associated with the operations of ECP and AIS acquisitions in the fiscal years ended March 31, 2016 and 2015, respectively. The following unaudited pro forma information presents the combined results of operations for the fiscal years ended March 31, 2015 and 2014, as if the Company had completed the ECP and AIS acquisitions at the beginning of fiscal 2014. The pro forma financial information is provided for comparative purposes only and is not necessarily indicative of what actual results would have been had the acquisition occurred on the date indicated, nor does it give effect to synergies, cost savings, fair market value adjustments, immaterial amortization expense and other changes expected to result from the acquisition. Accordingly, the pro forma financial results do not purport to be indicative of consolidated results of operations as of the date hereof, for any period ended on the date hereof, or for any other future date or period. The pro forma consolidated financial information has been calculated after applying the Company’s accounting policies and includes adjustments for transaction-related costs, to eliminate revenues earned by AIS from ECP and expenses paid by ECP to AIS associated with a license agreement between the two parties, interest expense incurred by ECP related to bank loans accounted as if the repayment of ECP debt had occurred on April 1, 2013 and was not outstanding during the periods, and income tax provision of AIS due to the elimination of revenue on the license agreement with ECP. Fiscal Years Ended March 31, 2015 2014 (in $000's) Revenue $ 230,323 $ 183,689 Income before income tax provision 28,871 4,802 Net income 113,794 3,623 |
Marketable Securities and Fair
Marketable Securities and Fair Value Measurements | 12 Months Ended |
Mar. 31, 2016 | |
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 reported as a component of other comprehensive income (loss). The Company’s marketable securities at March 31, 2016 and 2015 are classified on the balance sheet as follows: March 31, 2016 March 31, 2015 (in $000's) Short-term marketable securities (within one year to maturity) $ 163,822 $ 109,557 Long-term marketable securities (one to five years to maturity) 1,000 13,996 $ 164,822 $ 123,553 The Company’s marketable securities at March 31, 2016 and 2015 are invested in the following: Amortized Gross Unrealized Gross Unrealized Fair Market Cost Gains Losses Value (in $000's) March 31, 2016: US Treasury mutual fund securities $ 45,635 $ 21 $ — $ 45,656 Short-term government-backed securities 118,125 45 (4 ) 118,166 Long-term government-backed securities 999 1 — 1,000 $ 164,759 $ 67 $ (4 ) $ 164,822 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 to sell 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 value is 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 fair value hierarchy for its financial instruments measured at fair value as of March 31, 2016 and 2015: Level 1 Level 2 Level 3 Total March 31, 2016: (in $000's) Assets U.S. Treasury mutual fund securities $ — $ 45,656 $ — $ 45,656 Short-term government-backed securities — 118,166 — 118,166 Long-term government-backed securities — 1,000 — 1,000 Liabilities Contingent consideration — — 7,563 7,563 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 has determined that the estimated fair value of its 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 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 of the contingent consideration for the fiscal years ended March 31, 2016 and 2015: Fiscal Years Ended March 31, 2016 2015 (in $000's) Level 3 liabilities, beginning balance $ 6,510 $ — Additions — 6,000 Payments — — Change in fair value 1,053 510 Level 3 liabilities, ending balance $ 7,563 $ 6,510 The change in fair value of the contingent consideration of $1.1 million and $0.5 million for the fiscal years ended March 31, 2016 and 2015, respectively, was primarily 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 in the Company’s 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 March 31, 2016 classified in Level 3: Fair Value at Weighted Average March 31, 2016 Significant (range, if (in $000's) Valuation Methodology Unobservable Input applicable) Contingent consideration $ 7,563 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 March 31, 2016 and 2015, respectively, and is classified within other assets in the 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. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Accounts Receivable | Note 5. Accounts Receivable The components of accounts receivable are as follows: March 31, 2016 March 31, 2015 (in $000's) Trade receivables $ 42,945 $ 32,005 Allowance for doubtful accounts (124 ) (177 ) $ 42,821 $ 31,828 The following table summarizes activity in the Company's allowance for doubtful accounts: Fiscal Years Ended March 31, 2016 2015 2014 (in $000's) Balance at beginning of year $ 177 $ 185 $ 136 Additions 42 115 81 Deductions (95 ) (123 ) (32 ) Balance at end of year $ 124 $ 177 $ 185 |
Inventories
Inventories | 12 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 6. Inventories The components of inventories are as follows: March 31, 2016 March 31, 2015 (in $000's) Raw materials and supplies $ 7,993 $ 7,417 Work-in-progress 13,147 6,466 Finished goods 5,600 2,891 $ 26,740 $ 16,774 The Company’s inventories relate to its circulatory care product lines, primarily the Impella® and AB5000™ product platforms. Finished goods and work-in-process inventories consist of direct material, labor and overhead. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Mar. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | Note 7. Property and Equipment The components of property and equipment are as follows: March 31, 2016 March 31, 2015 (in $000's) Machinery and equipment $ 25,211 $ 19,335 Furniture and fixtures 1,510 1,000 Leasehold improvements 11,833 2,874 Construction in progress 3,712 1,685 Total cost 42,266 24,894 Less accumulated depreciation (19,082 ) (15,767 ) $ 23,184 $ 9,127 Depreciation expense related to property and equipment was $3.3 million, $2.7 million, and $2.4 million for the fiscal years ending March 31, 2016, 2015 and 2014, respectively. |
Goodwill and In-Process Researc
Goodwill and In-Process Research and Development | 12 Months Ended |
Mar. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and In-Process Research and Development | Note 8. Goodwill and In-Process Research and Development The carrying amount of goodwill at March 31, 2016 and 2015 was $33.0 million and $31.5 million, respectively, and has been recorded in connection with the Company’s acquisition of Impella Cardiosystems AG, or Impella, in May 2005 and ECP and AIS in July 2014. The goodwill activity is as follows: (in $000's) Balance at March 31, 2014 $ 37,990 Additions 1,964 Foreign currency translation impact (8,420 ) Balance at March 31, 2015 $ 31,534 Foreign currency translation impact 1,469 Balance at March 31, 2016 $ 33,003 The Company has no accumulated impairment losses on goodwill. The Company performed a Step 0 qualitative assessment during the annual impairment review for fiscal 2016 as of October 31, 2015 and concluded that it is not more likely than not that the fair value of the Company’s single reporting unit is less than its carrying amount. Therefore, the two-step goodwill impairment test for the reporting unit was not necessary in fiscal 2016. As described in Note 3. “Acquisitions,” in July 2014, the Company acquired ECP and AIS and recorded $18.5 million of IPR&D. The estimated fair value of the IPR&D was determined using a probability-weighted income approach, which discounts expected future cash flows to present value. The projected cash flows from the expandable catheter pump technology were based on certain key assumptions, including estimates of future revenue and expenses, taking into account the stage of development of the technology at the acquisition date and the time and resources needed to complete development. The Company used a discount rate of 22.5% and cash flows that have been probability adjusted to reflect the risks of product commercialization, which the Company believes are appropriate and representative of market participant assumptions. The carrying value of the Company’s IPR&D assets and the change in the balance for the fiscal years ended March 31, 2016 and 2015 is as follows: (in $000's) Balance at March 31, 2014 $ — Additions 18,500 Foreign currency translation impact (3,789 ) Balance at March 31, 2015 $ 14,711 Foreign currency translation impact 685 Balance at March 31, 2016 $ 15,396 The Company tests IPR&D for impairment at least annually, or more frequently if impairment indicators exist, by first assessing qualitative factors to determine whether it is more likely than not that the fair value of the IPR&D intangible asset is less than its carrying amount. The Company performed its annual impairment review for fiscal 2016 as of October 31, 2015 and concluded that it is not more likely than not that the fair value of the IPR&D is less than its carrying amount. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | Note 9. Stockholders’ Equity Class B Preferred Stock The Company has authorized 1,000,000 shares of Class B Preferred Stock, $.01 par value, of which the Board of Directors can set the designation, rights and privileges. No shares of Class B Preferred Stock have been issued or are outstanding. |
Stock Award Plans and Stock-Bas
Stock Award Plans and Stock-Based Compensation | 12 Months Ended |
Mar. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Award Plans and Stock-Based Compensation | Note 10. Stock Award Plans and Stock-Based Compensation Stock Award Plans The Company grants stock options and restricted stock awards to employees and others. All outstanding stock options of the Company as of March 31, 2016 were granted with an exercise price equal to the fair market value on the date of grant. Outstanding stock options, if not exercised, expire 10 years from the date of grant. 2015 Stock Incentive Plan The Company’s 2015 Stock Incentive Plan (the “2015 Plan”) authorizes the grant of a variety of equity awards to the Company’s officers, directors, employees, consultants and advisers, including awards of unrestricted and restricted stock, restricted stock units, incentive and nonqualified stock options to purchase shares of common stock, performance share awards and stock appreciation rights. The 2015 Plan provides that options may only be granted at the current market value on the date of grant. Each share of stock issued pursuant to a stock option or stock appreciation right counts as one share against the maximum number of shares issuable under the 2015 Plan, while each share of stock issued pursuant to any other type of award counts as 1.7 shares against the maximum number of shares issuable under the 2015 Plan. The Company’s policy for issuing shares upon exercise of stock options or the vesting of its restricted stock awards and restricted stock units is to issue shares of common stock at the time of exercise or conversion. At March 31, 2016, a total of approximately 1,988,000 shares were available for future issuance under the 2015 Plan. 2008 Stock Incentive Plan The Company’s 2008 Stock Incentive Plan (the “2008 Plan”) authorizes the grant of a variety of equity awards to the Company’s officers, directors, employees, consultants and advisers, including awards of unrestricted and restricted stock, restricted stock units, incentive and nonqualified stock options to purchase shares of common stock, performance share awards and stock appreciation rights. The 2008 Plan provides that options may only be granted at the current market value on the date of grant. Each share of stock issued pursuant to a stock option or stock appreciation right counts as one share against the maximum number of shares issuable under the 2008 Plan, while each share of stock issued pursuant to any other type of award counts as 1.58 shares against the maximum number of shares issuable under the 2008 Plan for grants made on or after August 11, 2010 (and as 1.5 shares for grants made prior to that date). The Company’s policy for issuing shares upon exercise of stock options or the vesting of its restricted stock awards and restricted stock units is to issue shares of common stock at the time of exercise or conversion. At March 31, 2016, a total of approximately 648,000 shares were available for future issuance under the 2008 Plan. Stock-Based Compensation The following table summarizes stock-based compensation expense by financial statement line item in the Company’s consolidated statements of operations for the fiscal years ended March 31, 2016, 2015 and 2014: Fiscal Years Ended March 31, 2016 2015 2014 (in $000's) Cost of product revenue $ 895 $ 665 $ 614 Research and development 3,950 3,205 2,347 Selling, general and administrative 24,208 12,650 8,257 $ 29,053 $ 16,520 $ 11,218 The components of stock-based compensation for the fiscal years ended March 31, 2016, 2015 and 2014 were as follows: Fiscal Years Ended March 31, 2016 2015 2014 (in $000's) Restricted stock units and restricted stock $ 23,708 $ 13,539 $ 8,322 Stock options 4,866 2,708 2,679 Employee stock purchase plan 479 273 217 $ 29,053 $ 16,520 $ 11,218 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. As a result of the modification, the Company recorded $2.5 million in stock compensation expense, which is recorded in selling, general and administrative expenses for the year ended March 31, 2016. 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 $1.4 million in stock compensation expense related to this accelerated vesting, which is recorded in selling, general and administrative expenses for the year ended March 31, 2016. 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 $2.0 million in stock compensation expense, which is recorded in selling, general and administrative expenses for the year ended March 31, 2016. Stock Options The following table summarized stock option activity for the year ended March 31, 2016: Weighted Weighted Average Aggregate Average Remaining Intrinsic Options Exercise Contractual Value (in thousands) Price Term (years) (in thousands) Outstanding at beginning of year 2,892 $ 14.72 5.18 Granted 183 72.67 Exercised (829 ) 11.78 Cancelled and expired (2 ) 16.02 Outstanding at end of year 2,244 $ 20.55 5.19 $ 166,722 Exercisable at end of year 1,594 $ 13.84 4.05 $ 129,040 Options vested and expected to vest at end of year 2,182 $ 20.07 5.11 $ 163,162 The remaining unrecognized stock-based compensation expense for unvested stock option awards at March 31, 2016 was approximately $6.0 million, net of forfeitures, and the weighted-average period over which this cost will be recognized is 2.4 years. The aggregate intrinsic value of options exercised for fiscal years 2016, 2015 and 2014 was $58.6 million, $20.0 million and $16.3 million, respectively. The total cash received as a result of employee stock option exercises during the fiscal years ended March 31, 2016, 2015 and 2014 was approximately $9.8 million, $10.9 million and $9.4 million, respectively. The total fair value of options vested in fiscal years 2016, 2015 and 2014 was $2.6 million, $2.6 million and $2.5 million, respectively. 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 fiscal years ended March 31, 2016, 2015 and 2014 was as follows: Fiscal Years Ended March 31, 2016 2015 2014 Valuation assumptions: Weighted average grant-date fair value $ 29.57 $ 9.29 $ 9.85 Risk-free interest rate 1.55 % 1.60 % 0.94 % Expected option life (years) 4.15 4.19 4.25 Expected volatility 49.7 % 49.3 % 51.7 % 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 expected forfeitures in the future. Restricted Stock and Restricted Stock Units The following table summarizes restricted stock and restricted stock unit activity for the fiscal year ended March 31, 2016: Number of Shares Weighted Average Grant Date Fair Value (in thousands) (per share) Restricted stock and restricted stock units at beginning of year 1,160 $ 21.90 Granted 696 $ 87.45 Vested (543 ) $ 22.52 Forfeited (50 ) $ 17.11 Restricted stock and restricted stock units at end of year 1,263 $ 57.95 The remaining unrecognized compensation expense for outstanding restricted stock and restricted stock units, including performance-based awards, as of March 31, 2016 was $27.5 million and the weighted-average period over which this cost will be recognized is 2.3 years. The weighted average grant-date fair value for restricted stock and restricted stock units granted during the fiscal years ended March 31, 2016, 2015 and 2014 was $87.45, $22.07 and $23.34 per share, respectively. The total fair value of restricted stock and restricted stock units vested in fiscal years 2016, 2015 and 2014 was $39.6 million, $11.2 million and $6.0 million, respectively. Performance and Market-Based Awards Restricted stock units include 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 March 31, 2016 was $17.2 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. The Company met the prescribed performance milestones in fiscal 2016 such that the remaining outstanding 183,940 shares of common stock as of March 31, 2016 will vest subject to service requirements for vesting for these employees and stock-based compensation expense is being recognized accordingly over the employee’s service term. As of March 31, 2016, 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 March 31, 2016, approximately 123,000 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 March 31, 2016, 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 March 31, 2016, 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 year ended March 31, 2016. 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 provided the executive officers are still employed with the Company. 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 is being 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 market-based awards and the estimated grant-date fair value: Risk-free interest rate 1.10 % Dividend yield 0 % Remaining performance period (years) 2.21 Expected volatility 47.2 % Estimated grant date fair value (per share) $ 107.10 Target performance (number of shares) 107,660 Employee Stock Purchase Plan The Company has an employee stock purchase plan, or ESPP. Under the ESPP, eligible employees, including officers and directors, who have completed at least three months of employment with the Company or its subsidiaries who elect to participate in the purchase plan instruct the Company to withhold a specified amount of the employee’s income each payroll period during a six-month payment period (the periods April 1—September 30 and October 1—March 31). On the last business day of each six-month payment period, the amount withheld is used to purchase shares of the Company’s common stock at an exercise price equal to 85% of the lower of its market price on the first business day or the last business day of the payment period. The Company recognized compensation expense of $0.5 million, $0.3 million and $0.2 million for the fiscal years ended March 31, 2016, 2015 and 2014, respectively, related to the ESPP. |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 11. Income Taxes The components of the Company’s income tax provision (benefit) for the fiscal years ended March 31, 2016, 2015 and 2014 are as follows: 2016 2015 2014 (in $000's) Income before provision for income taxes: United States $ 54,406 $ 22,243 $ 4,267 Foreign 11,432 6,522 4,263 Income before income taxes $ 65,838 $ 28,765 $ 8,530 Current tax expense (benefit): Federal $ 1,690 $ 464 $ (100 ) State 2,113 424 (106 ) Foreign 1,592 1,283 525 5,395 2,171 319 Deferred tax expense (benefit): Federal 18,769 (66,140 ) 825 State 1,284 (13,430 ) 35 Foreign 2,243 (7,524 ) - 22,296 (87,094 ) 860 Total income tax provision (benefit) $ 27,691 $ (84,923 ) $ 1,179 The components of the Company’s net deferred taxes were as follows: March 31, 2016 2015 (in $000's) Deferred tax assets NOL carryforwards and tax credit carryforwards $ 34,305 $ 60,081 Stock-based compensation 14,879 10,568 Nondeductible reserves and accruals 8,550 7,573 Amortizable intangibles other than goodwill 2,420 2,993 Capitalized research and development 442 1,597 Foreign NOL carryforwards 17,635 19,617 Deferred revenue 3,351 2,669 Depreciation 353 276 Other, net 1,802 1,298 83,737 106,672 Deferred tax liabilities Indefinite lived intangibles (8,480 ) (7,530 ) In-process research and development (4,649 ) (4,443 ) Domestic deferred tax liability on foreign NOL carryforwards (10,488 ) (12,276 ) (23,617 ) (24,249 ) Net deferred tax assets 60,120 82,423 Valuation allowance (2,418 ) (2,912 ) Net deferred tax assets $ 57,702 $ 79,511 Reported as: Long-term deferred tax assets, net 58,534 80,306 Long-term deferred tax liabilities (832 ) (795 ) Net deferred tax assets $ 57,702 $ 79,511 As disclosed in Note 2. “Summary of Significant Accounting Policies,” The Company early adopted ASU No. 2015-17 and has applied the guidance retrospectively to all periods presented. The impact on the March 31, 2015 balance sheet was a reclassification of $35.1 million from current deferred tax assets to long-term deferred tax assets. Adoption of this standard did not impact the Company’s results of operations, retained earnings, or cash flows in the current or previous interim and annual reporting periods. A reconciliation of the federal statutory income tax rate to the Company’s effective income tax rate is as follows for the fiscal years ended March 31, 2016, 2015, and 2014: 2016 2015 2014 Statutory income tax rate 35.0 % 35.0 % 34.0 % Increase (decrease) resulting from: Change in valuation allowance 0.7 (342.8 ) (53.7 ) Credits (4.1 ) (1.9 ) (20.1 ) Foreign taxes 2.5 4.5 - State taxes, net 3.7 4.0 12.9 Permanent differences 3.0 3.9 0.4 Stock based compensation 0.3 0.3 0.9 Rate differential on foreign operations - 0.2 31.1 Other 1.0 1.6 8.4 Effective tax rate 42.1 % (295.2 ) % 13.9 % The Company regularly assesses its ability to realize its deferred tax assets. Assessing the realization of deferred tax assets requires significant management judgment. In determining whether its deferred tax assets are more likely than not realizable, the Company evaluates all available positive and negative evidence, and weights the evidence based on its objectivity. During the fiscal year ended March 31, 2015, the Company determined based on its consideration of the weight of positive and negative evidence that there was sufficient positive evidence that most of its federal, state and certain foreign deferred tax assets are more likely than not recoverable as of March 31, 2015. The Company’s conclusion was primarily driven by the receipt of PMA approval for our Impella 2.5™ product in March 2015, our history of profits in recent years and our expectation of continuing future profitability. Accordingly, the Company recorded a $101.5 million reversal of the valuation allowance in the quarter ended March 31, 2015, primarily related to the Company expecting to be able to use NOL carryforwards in the future in the U.S. and Germany. As of March 31, 2016 and 2015, respectively, the Company recorded a valuation allowance of $2.4 million and $2.9 million which represents deferred tax assets related to NOL carryforwards in certain foreign jurisdictions in which the Company has had limited history of profitability. Based on the review of all available evidence, the Company recorded a valuation allowance to reduce these deferred tax assets to the amount that is more likely than not to be realizable as of March 31, 2016 and 2015. Changes in the valuation allowance for deferred tax assets during the fiscal years ended March 31, 2016, 2015 and 2014 were as follows: 2016 2015 2014 (in $000's) Valuation allowance as of beginning of year $ 2,912 $ 102,093 $ 106,670 Decreases recorded as benefit to income tax provision (1,171 ) (101,468 ) (4,577 ) Increases due to foreign net operating loss in certain foreign jurisdictions 677 2,287 - Valuation allowance as of end of year $ 2,418 $ 2,912 $ 102,093 At March 31, 2016, the Company had federal net operating loss carryforwards, or NOLs, of approximately $173.2 million which expire in varying years from fiscal 2018 through fiscal 2034. At March 31, 2016, the Company had German and French NOLs of approximately $25.0 million and $2.4 million, respectively, which do not expire. In addition, at March 31, 2016, the Company had federal and state research and development credit carryforwards of approximately $12.4 million and $8.0 million, respectively, which expire in varying years from fiscal 2017 through fiscal 2036. Of the total amount of available federal NOLs, $142.0 million relates to stock-based compensation tax deductions in excess of stock-based compensation expense for financial reporting purposes (“excess tax benefits”). Excess tax benefits are realized when they reduce income taxes payable, as determined using a “with and without” method, and are credited to additional paid-in capital rather than as a reduction of the income tax provision. During the year ended March 31, 2016, the Company realized excess tax benefits from federal and state tax deductions of $3.6 million which were credited to additional paid-in capital. The Company and its subsidiaries are subject to U.S. federal income tax, as well as income tax of multiple state and foreign jurisdictions. Fiscal years 2012 through 2016 remain open to examination in Germany. All tax years remain subject to examination by the Internal Revenue Service and state tax authorities, because the Company has net operating loss and tax credit carryforwards which may be utilized in future years to offset taxable income, those years may also be subject to review by relevant taxing authorities if the carryforwards are utilized. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 12. Commitments and Contingencies Commitments The following is a description of the Company’s significant arrangements in which the Company is a guarantor. Indemnifications —In many sales transactions, the Company indemnifies customers against possible claims of patent infringement caused by the Company’s products. The indemnifications contained within sales contracts usually do not include limits on the claims. The Company has never incurred any material costs to defend lawsuits or settle patent infringement claims related to sales transactions. The Company enters into agreements with other companies in the ordinary course of business, typically with underwriters, contractors, clinical sites and customers that include indemnification provisions. Under these provisions the Company generally indemnifies and holds harmless the indemnified party for losses suffered or incurred by the indemnified party as a result of its activities. These indemnification provisions generally survive termination of the underlying agreement. The maximum potential amount of future payments the Company could be required to make under these indemnification provisions is unlimited. The Company has never incurred any material costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, the estimated fair value of these agreements is immaterial. Accordingly, the Company has no liabilities recorded for these agreements as of March 31, 2016. Clinical study agreements —In the Company’s clinical study agreements, the Company has agreed to indemnify the participating institutions against losses incurred by them for claims related to any personal injury of subjects taking part in the study to the extent they relate to uses of the Company’s devices in accordance with the clinical study agreement, the protocol for the device and the Company’s instructions. The indemnification provisions contained within the Company’s clinical study agreements do not generally include limits on the claims. The Company has never incurred any material costs related to the indemnification provisions contained in its clinical study agreements. Facilities leases — The Company’s headquarters is located at 22 Cherry Hill Drive in Danvers, Massachusetts and consists of approximately 125,560 square feet of space under an operating lease. The monthly lease payments over the remaining term of the lease are as follows: · $84,914 base rent per month from March 2016 through February 2018; and · $87,530 base rent per month from March 2018 through February 2021. 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 expects, among other things and subject to closing conditions, to 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. The Company has entered into two amendments of the P&S Agreement dated January 19, 2016 and April 19, 2016 to extend the due diligence period related to the purchase of the property until July 19, 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. $73,000 at March 31, 2016 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. Total rent expense for the Company’s operating leases included in the accompanying consolidated statements of operations approximated $2.4 million, $1.9 million and $1.5 million for the fiscal years ended March 31, 2016, 2015 and 2014, respectively. Future minimum lease payments under non-cancelable operating leases and contractual obligations as of March 31, 2016 are approximately as follows: Fiscal Years Ending March 31, (in $000s) 2017 $ 2,252 2018 2,185 2019 2,017 2020 1,979 2021 1,892 Thereafter 2,048 Total future minimum lease payments $ 12,373 License agreements —In April 2014, the Company entered into an exclusive license agreement for the rights to certain optical sensor technologies in the field of cardio-circulatory assist devices. Under the agreement, the Company made a $1.5 million upfront payment upon execution of the agreement and agreed to make additional payments of up to $4.5 million upon achievement of 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 and $0.5 million in April 2016. The Company could make additional payments of up to $2.0 million upon the achievement of certain development milestones. The Company is also party to a license agreement related to certain circulatory care device patents and know-how. Under this agreement, the Company would be obligated to pay up to $3.0 million in cash or stock, if certain development and regulatory milestones are achieved. Contingencies From time to time, the Company is involved in legal and administrative proceedings and claims of various types. In some actions, the claimants seek damages, as well as other relief, which, if granted, would require significant expenditures. The Company records a liability in its consolidated financial statements for these matters when a loss is known or considered probable and the amount can be reasonably estimated. The Company reviews these estimates each accounting period as additional information is known and adjusts the loss provision when appropriate. If a matter is both probable to result in liability and the amounts of loss can be reasonably estimated, the Company estimates and discloses the possible loss or range of loss. If the loss is not probable or cannot be reasonably estimated, a liability is not recorded in its consolidated financial statements. On October 26, 2012, the Company was informed that the 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 has responded to the additional requests for information contained in the CID, and is in the process of responding to other informal requests. The Company 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. In December 2015, the Company received a letter from Maquet Cardiovascular LLC, a subsidiary of the Getinge Group (“Maquet”), and maker of the intra-aortic balloon pump, asserting that Abiomed’s Impella products infringe certain guidewire, lumen and sensor claims of two Maquet patents and Maquet filed one pending patent application that Maquet has filed in the U.S. and elsewhere, and encouraged the Company to discuss taking a license from Maquet. In January 2016, the Company responded to Maquet stating that it believed that the cited claims were invalid and that its Impella products did not infringe the cited patents. In May 2016, Maquet sent a second letter to Abiomed notifying the Company that the pending patent application had been issued as a U.S. patent and repeated their earlier assertion and encouraged the Company to discuss taking a license from Maquet. On May 19, 2016, the Company filed suit in Massachusetts District Court against Maquet seeking a declaratory judgment that Abiomed’s Impella products do not infringe Maquet’s cited patent rights. 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 disputes with Thoratec and Maquet 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. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Mar. 31, 2016 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | Note 13. Accrued Expenses Accrued expenses consisted of the following: March 31, 2016 March 31, 2015 (in $000's) Employee compensation $ 18,359 $ 15,978 Sales and income taxes 2,527 1,506 Professional, legal and accounting fees 1,764 710 Research and development 1,587 1,744 Marketing 1,146 - Warranty 998 1,103 Other 2,001 853 $ 28,382 $ 21,894 Accrued employee compensation consists primarily of accrued bonuses, accrued commissions and accrued employee benefits at March 31, 2016 and 2015. |
Segment and Enterprise Wide Dis
Segment and Enterprise Wide Disclosures | 12 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment and Enterprise Wide Disclosures | Note 14. 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. International sales (sales outside the U.S. and primarily in Europe) accounted for 8%, 10% and 9% of total product revenue during the fiscal years ended March 31, 2016, 2015 and 2014, respectively. As of March 31, 2016 and 2015, most of the Company’s long-lived assets are located in the U.S. except for $5.9 million and $3.8 million at March 31, 2016 and 2015, respectively, which are located primarily in Germany. |
Quarterly Results of Operation
Quarterly Results of Operation | 12 Months Ended |
Mar. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operation | Note 15. Quarterly Results of Operation (Unaudited) The following is a summary of the Company’s unaudited quarterly results of operations for the fiscal years ending March 31, 2016 and 2015: Fiscal Year Ended March 31, 2016 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Year (in $000's) Total revenues $ 73,432 $ 76,359 $ 85,795 $ 93,957 $ 329,543 Cost of product revenue 10,868 12,144 12,744 14,663 50,419 Other operating expenses 47,533 51,398 55,608 59,481 214,020 Other income, net 116 149 55 414 734 Income before income taxes 15,147 12,966 17,498 20,227 65,838 Income tax provision 6,288 5,231 6,943 9,229 27,691 Net income $ 8,859 $ 7,735 $ 10,555 $ 10,998 $ 38,147 Basic net income per share $ 0.21 $ 0.18 $ 0.25 $ 0.26 $ 0.90 Diluted net income per share $ 0.20 $ 0.17 $ 0.23 $ 0.24 $ 0.85 Fiscal Year Ended March 31, 2015 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Year (in $000's) Total revenues $ 48,811 $ 51,938 $ 62,005 $ 67,557 $ 230,311 Cost of product revenue 9,689 9,612 9,838 10,806 39,945 Other operating expenses 40,660 38,148 38,504 44,388 161,700 Other income (expense), net 55 (3 ) 38 9 99 Income (loss) before income taxes (1,483 ) 4,175 13,701 12,372 28,765 Income tax (benefit) provision (1) 226 336 1,017 (86,502 ) (84,923 ) Net income (loss) $ (1,709 ) $ 3,839 $ 12,684 $ 98,874 $ 113,688 Basic net income (loss) per share $ (0.04 ) $ 0.09 $ 0.31 $ 2.40 $ 2.80 Diluted net income (loss) per share $ (0.04 ) $ 0.09 $ 0.30 $ 2.24 $ 2.65 (1) Income tax benefit for the quarter and year ended March 31, 2015 were impacted by the release of the $101.5 million valuation allowance on certain deferred tax assets. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles of the United States of America, or GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. The Company bases its estimates on historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. On an ongoing basis, the Company evaluates its estimates, including those related to revenue recognition, collectability of receivables, realizability of inventory, goodwill, intangible and long-lived assets, accrued expenses, stock-based compensation, income taxes including deferred tax assets and liabilities, contingencies and litigation. Provisions for depreciation are based on their estimated useful lives using the straight-line method. Some of these estimates can be subjective and complex and, consequently, actual results may differ from these estimates under different assumptions or conditions. |
Cash Equivalents and Marketable Securities | Cash Equivalents and Marketable Securities The Company classifies any marketable security with a maturity date of 90 days or less at the time of purchase as a cash equivalent. Cash equivalents are carried on the balance sheet at fair market value. The Company classifies any security with a maturity date of greater than 90 days at the time of purchase as marketable securities and classifies marketable securities with a maturity date of greater than one year from the balance sheet date as long-term marketable securities. Securities that the Company has the positive intent and ability to hold to maturity are reported at amortized cost and classified as held-to-maturity securities. If the Company does not have the intent and ability to hold a security to maturity, it reports the investment as available-for-sale securities. The Company reports available-for-sale securities at fair value, and includes unrealized gains and, to the extent deemed temporary, unrealized losses in stockholders’ equity. If any adjustment to fair value reflects a decline in the value of the investment, the Company considers available evidence to evaluate whether the decline is “other than temporary” and, if so, marks the security to market through a charge to unrealized loss on short-term marketable securities in the consolidated statements of operations. |
Major Customers and Concentrations of Credit Risk | Major Customers and Concentrations of Credit Risk The Company primarily sells its products to hospitals and distributors. No customer accounted for more than 10% of total product revenues in fiscal years ended March 31, 2016, 2015 or 2014. No individual customer had an accounts receivable balance greater than 10% of total accounts receivable at March 31, 2016 and 2015. Credit is extended based on an evaluation of a customer’s financial condition and generally collateral is not required. To date, credit losses have not been significant and the Company maintains an allowance for doubtful accounts based on its assessment of the collectability of accounts receivable. Receivables are geographically dispersed, primarily throughout the U.S., as well as in Europe and other foreign countries where formal distributor agreements exist. Financial instruments which potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents, short and long-term marketable securities and accounts receivable. Management mitigates credit risk by limiting the investment type and maturity to securities that preserve capital, maintain liquidity and have a high credit quality. |
Financial Instruments | Financial Instruments The Company’s financial instruments are comprised of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses, the carrying amounts of which approximate fair market value as they are highly liquid and primarily short term in nature. |
Inventories | Inventories Inventories are stated at the lower of cost or market. Cost is based on the first in, first out method. The Company regularly reviews inventory quantities on hand and writes down to its net realizable value any inventory that it believes to be impaired. Management considers forecast demand in relation to the inventory on hand, competitiveness of product offerings, market conditions and product life cycles when determining excess and obsolescence and net realizable value adjustments. Once inventory is written down and a new cost basis is established, it is not written back up if demand increases. |
Property and Equipment | Property and Equipment Property and equipment is recorded at cost less accumulated depreciation. Depreciation is computed using the straight line method based on estimated useful lives of three to five years for machinery and equipment, computer software, and furniture and fixtures. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or the estimated useful lives of the related assets. Expenditures for maintenance and repairs are expensed as incurred. Upon retirement or other disposition of assets, the costs and related accumulated depreciation are eliminated from the accounts and the resulting gain or loss is reflected in operating expenses. Property and equipment is reviewed for impairment losses whenever events or changes in circumstances indicate the carrying amount may not be recoverable. An impairment loss would be recognized based on the amount by which the carrying value of the asset or asset group exceeds its fair value. Fair value is determined primarily using the estimated future cash flows associated with the asset or asset group under review discounted at a rate commensurate with the risk involved and other valuation techniques. |
Goodwill | Goodwill Goodwill is recorded when consideration for an acquisition exceeds the fair value of the net tangible and intangible assets acquired. Goodwill is not amortized, instead the Company evaluates goodwill for impairment at least annually at October 31, as well as whenever events or changes in circumstances suggest that the carrying amount may not be recoverable. Goodwill impairment assessments are performed at the reporting unit level. The goodwill test involves a two-step process. The first step is a comparison of the reporting unit’s fair value to its carrying value. If the reporting unit’s fair value exceeds its carrying value, no further procedures are required. However, if the reporting unit’s fair value is less than the carrying value, an impairment of goodwill may exist, requiring a second step to measure the amount of impairment loss. If the implied fair value of goodwill is less than the recorded goodwill, an impairment charge is recorded for the difference. In applying the goodwill impairment test, the Company may assess qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value (“Step 0”). Qualitative factors may include, but are not limited to, macroeconomic conditions, industry conditions, the competitive environment, changes in the market for our products and services, regulatory and political developments, cost factors, and entity specific factors such as strategies and overall financial performance. If, after assessing these qualitative factors, the Company determines it is not more likely than not that the fair value of a reporting unit is less than its carry amount, then performing the two-step impairment test is unnecessary. The goodwill impairment test is performed at the reporting unit level by comparing the reporting unit’s carrying amount, including goodwill, to the fair value of the reporting unit. The Company estimates the fair value of its single reporting unit using a combination of the income approach and the market approach. The income approach incorporates the use of a discounted cash flow method in which the estimated future cash flows and terminal values for the reporting unit is discounted to a present value using an appropriate discount rate. Cash flow projections are based on management’s estimates of economic and market conditions which drive key assumptions of revenue growth rates, operating margins, cash flows, capital expenditures and working capital requirements. The discount rate is based on the specific risk characteristics of the reporting unit and its underlying forecast. The market approach estimates fair value by comparing publicly traded companies with similar operating and investment characteristics as the reporting unit. The fair values determined by the market approach and income approach, are weighted to determine the fair value for the reporting unit based primarily on the similarity of the operating and investment characteristics of the reporting unit to the comparable publicly traded companies used in the market approach. |
In-Process Research and Development | In-Process Research and Development In-process research and development, or IPR&D, assets are considered to be indefinite-lived until the completion or abandonment of the associated research and development projects. IPR&D assets represent the fair value assigned to technologies that are acquired, which at the time of acquisition have not reached technological feasibility and have no alternative future use. During the period that the IPR&D assets are considered indefinite-lived, they are tested for impairment on an annual basis, or more frequently if the Company becomes aware of any events occurring or changes in circumstances that indicate that the fair value of the IPR&D assets are less than their carrying amounts. If and when development is complete, which generally occurs upon regulatory approval and are able to commercialize products associated with the IPR&D assets, these assets are then deemed definite-lived and are amortized based on their estimated useful lives at that point in time. If development is terminated or abandoned, the Company may have a full or partial impairment charge related to the IPR&D assets, calculated as the excess of carrying value of the IPR&D assets over fair value. |
Contingent Consideration | Contingent Consideration Contingent consideration is recorded as a liability and is the estimate of the fair value of potential milestone payments related to business acquisitions. Contingent consideration is measured at fair value using a discounted cash flow model utilizing significant unobservable inputs including the probability of achieving each of the potential milestones and an estimated discount rate associated with the risks of the expected cash flows attributable to the various milestones. Significant increases or decreases in any of the probabilities of success or changes in expected timelines for achievement of any of these milestones could result in a significantly higher or lower fair value of the liability. The fair value of the contingent consideration at each reporting date is updated by reflecting the changes in fair value reflected within research and development expenses in our statement of operations. |
Accrued Expenses | Accrued Expenses As part of the process of preparing its financial statements, the Company is required to estimate accrued expenses. This process includes identifying services that third parties have performed and estimating the level of service performed and the associated cost incurred on these services as of each balance sheet date in its financial statements. Examples of estimated accrued expenses include contract service fees, such as amounts due to clinical research organizations, investigators in conjunction with clinical trials, professional service fees, such as attorneys and accountants, and third party expenses relating to marketing efforts associated with commercialization of the Company’s product and product candidates. Accrued expenses also include estimates for payroll costs, such as bonuses and commissions. In the event that the Company does not identify certain costs that have been incurred or it under or over-estimates the level of services or the costs of such services, reported expenses for a reporting period could be overstated or understated. The dates in which certain services commence and end, the level of services performed on or before a given date and the cost of services is often subject to the Company’s judgment. The Company makes these judgments and estimates based upon known facts and circumstances. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when evidence of an arrangement exists, title has passed or services have been rendered, the selling price is fixed or determinable and collectability is reasonably assured. Revenue from product sales to customers is recognized when delivery has occurred. All costs related to product sales are recognized at time of delivery. The Company does not provide for rights of return to customers on product sales and therefore does not record a provision for returns. Maintenance and service support contract revenues are included in product sales and are recognized ratably over the term of the service contracts. Revenue is recognized as earned in limited instances where the Company rents its console medical devices on a month-to-month basis or for a longer specified period of time to customers. Government-sponsored research and development contracts and grants generally provide for payment on a cost-plus-fixed-fee basis. Revenues from these contracts and grants are recognized as work is performed, provided the government has appropriated sufficient funds for the work. Under contracts in which the Company elects to spend significantly more on the development project during the term of the contract than the total contract amount, the Company prospectively recognizes revenue on such contracts ratably over the term of the contract as related research and development costs are incurred. |
Product Warranty | Product Warranty The Company generally provides a one-year warranty for certain products sold in which estimated contractual warranty obligations are recorded as an expense at the time of shipment and are included in accrued expenses in the accompanying consolidated balance sheets. The Company’s products are subject to regulatory and quality standards. Future warranty costs are estimated based on historical product performance rates and related costs to repair given products. The accounting estimate related to product warranty expense involves judgment in determining future estimated warranty costs. Should actual performance rates or repair costs differ from estimates, revisions to the estimated warranty liability would be required. |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Comprehensive income (loss) is comprised of net income, plus all changes in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources, including any foreign currency translation adjustments. These changes in equity are recorded as adjustments to accumulated other comprehensive income (loss) in the Company’s consolidated balance sheet. The components of accumulated other comprehensive income (loss) consist primarily of foreign currency translation adjustments. There were no reclassifications out of accumulated other comprehensive income (loss) during the fiscal years ended March 31, 2016, 2015 and 2014. |
Translation of Foreign Currencies | Translation of Foreign Currencies The functional currency of the Company’s foreign subsidiaries is their local currency. The assets and liabilities of the Company’s foreign subsidiaries are translated into U.S. dollars at exchange rates in effect at the balance sheet date. Income and expense items are translated at the average exchange rates prevailing during the period. The cumulative translation effect for subsidiaries using a functional currency other than the U.S. dollar is included in accumulated other comprehensive income or loss as a separate component of stockholders’ equity. The Company’s intercompany accounts are denominated in the functional currency of the foreign subsidiary. Gains and losses resulting from the remeasurement of intercompany receivables that the Company considers to be of a long-term investment nature are recorded in accumulated other comprehensive income or loss as a separate component of stockholders’ equity, while gains and losses resulting from the remeasurement of intercompany receivables from those foreign subsidiaries for which the Company anticipates settlement in the foreseeable future are recorded in the consolidated statement of operations. The net foreign currency translation gains and losses recorded in the consolidated statements of operations for the fiscal years ended March 31, 2016, 2015 and 2014 were not significant. |
Net Income Per Share | 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 fiscal year. Diluted net income per share is computed using the treasury stock method by dividing net income by the weighted average number of dilutive common shares outstanding during the fiscal year. Diluted shares outstanding is calculated by adding to the weighted average shares outstanding any potential dilutive securities outstanding for the fiscal year. Potential dilutive securities include stock options, restricted stock awards, restricted stock units, performance-based awards and shares to be purchased under the employee stock purchase plan. In fiscal years 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. Fiscal Years Ended March 31, 2016 2015 2014 Basic Net Income Per Share Net income $ 38,147 $ 113,688 $ 7,351 Weighted average shares used in computing basic net income per share 42,204 40,632 39,334 Net income per share - basic $ 0.90 $ 2.80 $ 0.19 Fiscal Years Ended March 31, 2016 2015 2014 Diluted Net Income Per Share Net income $ 38,147 $ 113,688 $ 7,351 Weighted average shares used in computing basic net income per share 42,204 40,632 39,334 Effect of dilutive securities 2,691 2,226 2,272 Weighted average shares used in computing diluted net income per share 44,895 42,858 41,606 Net income per share - diluted $ 0.85 $ 2.65 $ 0.18 For the fiscal years ended March 31, 2016, 2015 and 2014, approximately 62,000, 2,000 and 94,000 shares of common stock underlying outstanding securities primarily related to out-of-the-money stock options and performance-based awards where milestones were not met were not included in the computation of diluted earnings per share because their inclusion would be anti-dilutive. |
Stock-Based Compensation | Stock-Based Compensation The Company’s stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as an expense over the requisite service period, and includes an estimate of awards that will be forfeited. The fair value of stock option grants is estimated using the Black-Scholes option pricing model. Use of the valuation model requires management to make certain assumptions with respect to selected model inputs. 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 historical volatility of the Company’s stock. The Company estimates the expected term of options based on historical exercise experience and estimates of future exercises of unexercised options. In addition, an expected dividend yield of zero is used in the option valuation model because the Company does not pay dividends and does not expect to pay any cash dividends in the foreseeable future. Forfeitures are estimated based on an analysis of actual forfeitures, adjusted to the extent historical forfeitures may not be indicative of expected forfeitures in the future. For awards with service conditions only, the Company recognizes compensation cost on a straight-line basis over the requisite service period. For awards with service and performance conditions, the Company recognizes compensation costs using the graded vesting method over the requisite service period. Estimates of stock-based compensation expense for an award with performance conditions are based on the probable outcome of the performance conditions. The cumulative effect of changes in the probability outcomes are recorded in the period in which the changes occur. For awards with market-based conditions, the Company uses a Monte Carlo simulation model to estimate that the grant-date fair value. The fair value related to market-based awards are recorded as stock-based compensation expense over the vesting period regardless of whether the market condition is achieved or not. |
Income Taxes | Income Taxes The Company’s provision for income taxes is comprised of a current and a deferred provision. The current income tax provision is calculated as the estimated taxes payable or refundable on income tax returns for the current fiscal year. The deferred income tax provision is calculated for the estimated future income tax effects attributable to temporary differences and carryforwards using expected tax rates in effect in the years during which the differences are expected to reverse. Deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each fiscal year end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to impact taxable income. The Company regularly assesses its ability to realize its deferred tax assets. Assessing the realization of deferred tax assets requires significant management judgment. Valuation allowances are established when necessary to reduce net deferred tax assets to the amount that is more likely than not to be realized. The Company recognizes and measures uncertain tax positions using a two-step approach. The first step is to evaluate the tax position for recognition by determining if, based on the technical merits, it is more likely than not that the position will be sustained upon audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit at the largest amount that is more than 50% likely of being realized upon ultimate settlement. The Company reevaluates these uncertain tax positions on a quarterly basis. This evaluation is based on factors including, but not limited to, changes in facts or circumstances, changes in tax laws, effectively settled issues under audit and new audit activity. Any changes in these factors could result in the recognition of a tax benefit or an additional charge to the tax provision. When applicable, the Company accrues for the effects of uncertain tax positions and the related potential penalties and interest through income tax expense. As of March 31, 2016, the Company has no material uncertain tax positions and no interest and penalties have been recognized to date. |
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 does not expect the adoption of ASU 2015-16 to have a material impact on its consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740)—Balance Sheet Classification of Deferred Taxes Adoption of this standard did not impact the Company’s results of operations, retained earnings, or cash flows in the current or previous interim and annual reporting periods. In February 2016, the FASB issued ASU 2016-02, Leases In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting The Company is currently evaluating the impact of adopting ASU 2016-09 on its consolidated financial statements. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Earnings Per Share Basic And Diluted | Fiscal Years Ended March 31, 2016 2015 2014 Basic Net Income Per Share Net income $ 38,147 $ 113,688 $ 7,351 Weighted average shares used in computing basic net income per share 42,204 40,632 39,334 Net income per share - basic $ 0.90 $ 2.80 $ 0.19 Fiscal Years Ended March 31, 2016 2015 2014 Diluted Net Income Per Share Net income $ 38,147 $ 113,688 $ 7,351 Weighted average shares used in computing basic net income per share 42,204 40,632 39,334 Effect of dilutive securities 2,691 2,226 2,272 Weighted average shares used in computing diluted net income per share 44,895 42,858 41,606 Net income per share - diluted $ 0.85 $ 2.65 $ 0.18 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Fair Value of the Consideration Transferred | The acquisition-date fair value of the consideration transferred is as follows (in thousands): Total Acquisition Date Fair Value 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 | Fiscal Years Ended March 31, 2015 2014 (in $000's) Revenue $ 230,323 $ 183,689 Income before income tax provision 28,871 4,802 Net income 113,794 3,623 |
Marketable Securities and Fai26
Marketable Securities and Fair Value Measurements (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Marketable Securities by Balance Sheet Classification | The Company’s marketable securities at March 31, 2016 and 2015 are classified on the balance sheet as follows: March 31, 2016 March 31, 2015 (in $000's) Short-term marketable securities (within one year to maturity) $ 163,822 $ 109,557 Long-term marketable securities (one to five years to maturity) 1,000 13,996 $ 164,822 $ 123,553 |
Marketable Securities | The Company’s marketable securities at March 31, 2016 and 2015 are invested in the following: Amortized Gross Unrealized Gross Unrealized Fair Market Cost Gains Losses Value (in $000's) March 31, 2016: US Treasury mutual fund securities $ 45,635 $ 21 $ — $ 45,656 Short-term government-backed securities 118,125 45 (4 ) 118,166 Long-term government-backed securities 999 1 — 1,000 $ 164,759 $ 67 $ (4 ) $ 164,822 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 Measured at Fair Value | The following table presents the Company’s fair value hierarchy for its financial instruments measured at fair value as of March 31, 2016 and 2015: Level 1 Level 2 Level 3 Total March 31, 2016: (in $000's) Assets U.S. Treasury mutual fund securities $ — $ 45,656 $ — $ 45,656 Short-term government-backed securities — 118,166 — 118,166 Long-term government-backed securities — 1,000 — 1,000 Liabilities Contingent consideration — — 7,563 7,563 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 of the contingent consideration for the fiscal years ended March 31, 2016 and 2015: Fiscal Years Ended March 31, 2016 2015 (in $000's) Level 3 liabilities, beginning balance $ 6,510 $ — Additions — 6,000 Payments — — Change in fair value 1,053 510 Level 3 liabilities, ending balance $ 7,563 $ 6,510 |
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 March 31, 2016 classified in Level 3: Fair Value at Weighted Average March 31, 2016 Significant (range, if (in $000's) Valuation Methodology Unobservable Input applicable) Contingent consideration $ 7,563 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 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Components of Accounts Receivable | The components of accounts receivable are as follows: March 31, 2016 March 31, 2015 (in $000's) Trade receivables $ 42,945 $ 32,005 Allowance for doubtful accounts (124 ) (177 ) $ 42,821 $ 31,828 |
Summary of Allowance for Doubtful Accounts Receivable | The following table summarizes activity in the Company's allowance for doubtful accounts: Fiscal Years Ended March 31, 2016 2015 2014 (in $000's) Balance at beginning of year $ 177 $ 185 $ 136 Additions 42 115 81 Deductions (95 ) (123 ) (32 ) Balance at end of year $ 124 $ 177 $ 185 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | The components of inventories are as follows: March 31, 2016 March 31, 2015 (in $000's) Raw materials and supplies $ 7,993 $ 7,417 Work-in-progress 13,147 6,466 Finished goods 5,600 2,891 $ 26,740 $ 16,774 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Components of Property and Equipment | The components of property and equipment are as follows: March 31, 2016 March 31, 2015 (in $000's) Machinery and equipment $ 25,211 $ 19,335 Furniture and fixtures 1,510 1,000 Leasehold improvements 11,833 2,874 Construction in progress 3,712 1,685 Total cost 42,266 24,894 Less accumulated depreciation (19,082 ) (15,767 ) $ 23,184 $ 9,127 |
Goodwill and In-Process Resea30
Goodwill and In-Process Research and Development (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill Activity | The goodwill activity is as follows: (in $000's) Balance at March 31, 2014 $ 37,990 Additions 1,964 Foreign currency translation impact (8,420 ) Balance at March 31, 2015 $ 31,534 Foreign currency translation impact 1,469 Balance at March 31, 2016 $ 33,003 |
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 fiscal years ended March 31, 2016 and 2015 is as follows: (in $000's) Balance at March 31, 2014 $ — Additions 18,500 Foreign currency translation impact (3,789 ) Balance at March 31, 2015 $ 14,711 Foreign currency translation impact 685 Balance at March 31, 2016 $ 15,396 |
Stock Award Plans and Stock-B31
Stock Award Plans and Stock-Based Compensation (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Stock-Based Compensation Recognized | The following table summarizes stock-based compensation expense by financial statement line item in the Company’s consolidated statements of operations for the fiscal years ended March 31, 2016, 2015 and 2014: Fiscal Years Ended March 31, 2016 2015 2014 (in $000's) Cost of product revenue $ 895 $ 665 $ 614 Research and development 3,950 3,205 2,347 Selling, general and administrative 24,208 12,650 8,257 $ 29,053 $ 16,520 $ 11,218 |
Components of Stock-Based Compensation | The components of stock-based compensation for the fiscal years ended March 31, 2016, 2015 and 2014 were as follows: Fiscal Years Ended March 31, 2016 2015 2014 (in $000's) Restricted stock units and restricted stock $ 23,708 $ 13,539 $ 8,322 Stock options 4,866 2,708 2,679 Employee stock purchase plan 479 273 217 $ 29,053 $ 16,520 $ 11,218 |
Summary of Stock Option Activity | The following table summarized stock option activity for the year ended March 31, 2016: Weighted Weighted Average Aggregate Average Remaining Intrinsic Options Exercise Contractual Value (in thousands) Price Term (years) (in thousands) Outstanding at beginning of year 2,892 $ 14.72 5.18 Granted 183 72.67 Exercised (829 ) 11.78 Cancelled and expired (2 ) 16.02 Outstanding at end of year 2,244 $ 20.55 5.19 $ 166,722 Exercisable at end of year 1,594 $ 13.84 4.05 $ 129,040 Options vested and expected to vest at end of year 2,182 $ 20.07 5.11 $ 163,162 |
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 fiscal years ended March 31, 2016, 2015 and 2014 was as follows: Fiscal Years Ended March 31, 2016 2015 2014 Valuation assumptions: Weighted average grant-date fair value $ 29.57 $ 9.29 $ 9.85 Risk-free interest rate 1.55 % 1.60 % 0.94 % Expected option life (years) 4.15 4.19 4.25 Expected volatility 49.7 % 49.3 % 51.7 % |
Time Based Restricted Stock and Restricted Stock Units | |
Summary of Restricted Stock and Restricted Stock Units Activity | The following table summarizes restricted stock and restricted stock unit activity for the fiscal year ended March 31, 2016: Number of Shares Weighted Average Grant Date Fair Value (in thousands) (per share) Restricted stock and restricted stock units at beginning of year 1,160 $ 21.90 Granted 696 $ 87.45 Vested (543 ) $ 22.52 Forfeited (50 ) $ 17.11 Restricted stock and restricted stock units at end of year 1,263 $ 57.95 |
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 market-based awards and the estimated grant-date fair value: Risk-free interest rate 1.10 % Dividend yield 0 % Remaining performance period (years) 2.21 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) | 12 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income before Income Taxes | The components of the Company’s income tax provision (benefit) for the fiscal years ended March 31, 2016, 2015 and 2014 are as follows: 2016 2015 2014 (in $000's) Income before provision for income taxes: United States $ 54,406 $ 22,243 $ 4,267 Foreign 11,432 6,522 4,263 Income before income taxes $ 65,838 $ 28,765 $ 8,530 Current tax expense (benefit): Federal $ 1,690 $ 464 $ (100 ) State 2,113 424 (106 ) Foreign 1,592 1,283 525 5,395 2,171 319 Deferred tax expense (benefit): Federal 18,769 (66,140 ) 825 State 1,284 (13,430 ) 35 Foreign 2,243 (7,524 ) - 22,296 (87,094 ) 860 Total income tax provision (benefit) $ 27,691 $ (84,923 ) $ 1,179 |
Components of Income Tax Provision (Benefit) | The components of the Company’s income tax provision (benefit) for the fiscal years ended March 31, 2016, 2015 and 2014 are as follows: 2016 2015 2014 (in $000's) Income before provision for income taxes: United States $ 54,406 $ 22,243 $ 4,267 Foreign 11,432 6,522 4,263 Income before income taxes $ 65,838 $ 28,765 $ 8,530 Current tax expense (benefit): Federal $ 1,690 $ 464 $ (100 ) State 2,113 424 (106 ) Foreign 1,592 1,283 525 5,395 2,171 319 Deferred tax expense (benefit): Federal 18,769 (66,140 ) 825 State 1,284 (13,430 ) 35 Foreign 2,243 (7,524 ) - 22,296 (87,094 ) 860 Total income tax provision (benefit) $ 27,691 $ (84,923 ) $ 1,179 |
Components of Net Deferred Taxes | The components of the Company’s net deferred taxes were as follows: March 31, 2016 2015 (in $000's) Deferred tax assets NOL carryforwards and tax credit carryforwards $ 34,305 $ 60,081 Stock-based compensation 14,879 10,568 Nondeductible reserves and accruals 8,550 7,573 Amortizable intangibles other than goodwill 2,420 2,993 Capitalized research and development 442 1,597 Foreign NOL carryforwards 17,635 19,617 Deferred revenue 3,351 2,669 Depreciation 353 276 Other, net 1,802 1,298 83,737 106,672 Deferred tax liabilities Indefinite lived intangibles (8,480 ) (7,530 ) In-process research and development (4,649 ) (4,443 ) Domestic deferred tax liability on foreign NOL carryforwards (10,488 ) (12,276 ) (23,617 ) (24,249 ) Net deferred tax assets 60,120 82,423 Valuation allowance (2,418 ) (2,912 ) Net deferred tax assets $ 57,702 $ 79,511 Reported as: Long-term deferred tax assets, net 58,534 80,306 Long-term deferred tax liabilities (832 ) (795 ) Net deferred tax assets $ 57,702 $ 79,511 |
Differences Between Federal Statutory Income Tax Rate and Effective Tax Rates | A reconciliation of the federal statutory income tax rate to the Company’s effective income tax rate is as follows for the fiscal years ended March 31, 2016, 2015, and 2014: 2016 2015 2014 Statutory income tax rate 35.0 % 35.0 % 34.0 % Increase (decrease) resulting from: Change in valuation allowance 0.7 (342.8 ) (53.7 ) Credits (4.1 ) (1.9 ) (20.1 ) Foreign taxes 2.5 4.5 - State taxes, net 3.7 4.0 12.9 Permanent differences 3.0 3.9 0.4 Stock based compensation 0.3 0.3 0.9 Rate differential on foreign operations - 0.2 31.1 Other 1.0 1.6 8.4 Effective tax rate 42.1 % (295.2 ) % 13.9 % |
Changes in Valuation Allowance for Deferred Tax Assets | Changes in the valuation allowance for deferred tax assets during the fiscal years ended March 31, 2016, 2015 and 2014 were as follows: 2016 2015 2014 (in $000's) Valuation allowance as of beginning of year $ 2,912 $ 102,093 $ 106,670 Decreases recorded as benefit to income tax provision (1,171 ) (101,468 ) (4,577 ) Increases due to foreign net operating loss in certain foreign jurisdictions 677 2,287 - Valuation allowance as of end of year $ 2,418 $ 2,912 $ 102,093 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Minimum Lease Payments under All Significant Non Cancelable Operating Leases and Contractual Obligations | Future minimum lease payments under non-cancelable operating leases and contractual obligations as of March 31, 2016 are approximately as follows: Fiscal Years Ending March 31, (in $000s) 2017 $ 2,252 2018 2,185 2019 2,017 2020 1,979 2021 1,892 Thereafter 2,048 Total future minimum lease payments $ 12,373 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | Accrued expenses consisted of the following: March 31, 2016 March 31, 2015 (in $000's) Employee compensation $ 18,359 $ 15,978 Sales and income taxes 2,527 1,506 Professional, legal and accounting fees 1,764 710 Research and development 1,587 1,744 Marketing 1,146 - Warranty 998 1,103 Other 2,001 853 $ 28,382 $ 21,894 |
Quarterly Results of Operation
Quarterly Results of Operation (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Unaudited Quarterly Results of Operations | The following is a summary of the Company’s unaudited quarterly results of operations for the fiscal years ending March 31, 2016 and 2015: Fiscal Year Ended March 31, 2016 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Year (in $000's) Total revenues $ 73,432 $ 76,359 $ 85,795 $ 93,957 $ 329,543 Cost of product revenue 10,868 12,144 12,744 14,663 50,419 Other operating expenses 47,533 51,398 55,608 59,481 214,020 Other income, net 116 149 55 414 734 Income before income taxes 15,147 12,966 17,498 20,227 65,838 Income tax provision 6,288 5,231 6,943 9,229 27,691 Net income $ 8,859 $ 7,735 $ 10,555 $ 10,998 $ 38,147 Basic net income per share $ 0.21 $ 0.18 $ 0.25 $ 0.26 $ 0.90 Diluted net income per share $ 0.20 $ 0.17 $ 0.23 $ 0.24 $ 0.85 Fiscal Year Ended March 31, 2015 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Year (in $000's) Total revenues $ 48,811 $ 51,938 $ 62,005 $ 67,557 $ 230,311 Cost of product revenue 9,689 9,612 9,838 10,806 39,945 Other operating expenses 40,660 38,148 38,504 44,388 161,700 Other income (expense), net 55 (3 ) 38 9 99 Income (loss) before income taxes (1,483 ) 4,175 13,701 12,372 28,765 Income tax (benefit) provision (1) 226 336 1,017 (86,502 ) (84,923 ) Net income (loss) $ (1,709 ) $ 3,839 $ 12,684 $ 98,874 $ 113,688 Basic net income (loss) per share $ (0.04 ) $ 0.09 $ 0.31 $ 2.40 $ 2.80 Diluted net income (loss) per share $ (0.04 ) $ 0.09 $ 0.30 $ 2.24 $ 2.65 (1) Income tax benefit for the quarter and year ended March 31, 2015 were impacted by the release of the $101.5 million valuation allowance on certain deferred tax assets. |
Summary of Significant Accoun36
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Summary Of Significant Accounting Policy [Line Items] | |||
Product warranty period | 1 year | ||
Reclassifications out of accumulated other comprehensive income (loss) | $ 0 | $ 0 | $ 0 |
Expected dividend yield | 0.00% | ||
Deferred tax asset reclassification, current assets to long term assets | $ 35,100,000 | ||
Stock Options and Performance Shares | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Shares excluded from the calculation of diluted weighted average shares outstanding | 62,000 | 2,000 | 94,000 |
Leasehold Improvements | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Leasehold improvements, useful life | shorter of the lease term or the estimated useful lives | ||
Minimum | Machinery and Equipment | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Property and Equipment, useful life | 3 years | ||
Minimum | Computer Software | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Property and Equipment, useful life | 3 years | ||
Minimum | Furniture and Fixtures | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Property and Equipment, useful life | 3 years | ||
Maximum | Machinery and Equipment | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Property and Equipment, useful life | 5 years | ||
Maximum | Computer Software | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Property and Equipment, useful life | 5 years | ||
Maximum | Furniture and Fixtures | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Property and Equipment, useful life | 5 years |
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 | 12 Months Ended | |||||||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Basic Net Income Per Share | |||||||||||
Net income | $ 10,998 | $ 10,555 | $ 7,735 | $ 8,859 | $ 98,874 | $ 12,684 | $ 3,839 | $ (1,709) | $ 38,147 | $ 113,688 | $ 7,351 |
Weighted average shares used in computing basic net income per share | 42,204 | 40,632 | 39,334 | ||||||||
Net income per share - basic | $ 0.26 | $ 0.25 | $ 0.18 | $ 0.21 | $ 2.40 | $ 0.31 | $ 0.09 | $ (0.04) | $ 0.90 | $ 2.80 | $ 0.19 |
Diluted Net Income Per Share | |||||||||||
Net income | $ 10,998 | $ 10,555 | $ 7,735 | $ 8,859 | $ 98,874 | $ 12,684 | $ 3,839 | $ (1,709) | $ 38,147 | $ 113,688 | $ 7,351 |
Weighted average shares used in computing basic net income per share | 42,204 | 40,632 | 39,334 | ||||||||
Effect of dilutive securities | 2,691 | 2,226 | 2,272 | ||||||||
Weighted average shares used in computing diluted net income per share | 44,895 | 42,858 | 41,606 | ||||||||
Net income per share - diluted | $ 0.24 | $ 0.23 | $ 0.17 | $ 0.20 | $ 2.24 | $ 0.30 | $ 0.09 | $ (0.04) | $ 0.85 | $ 2.65 | $ 0.18 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) | Jul. 01, 2014 | Mar. 31, 2016 | Mar. 31, 2015 |
Business Acquisition [Line Items] | |||
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). | ||
Payments to acquire businesses, cash paid | $ 15,750,000 | ||
Revenues | $ 0 | $ 0 | |
Net losses | 3,700,000 | $ 2,300,000 | |
Pro forma adjustments, acquisitions | $ 0 | ||
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 | ||
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 | 15,000,000 | ||
AIS GmbH Aachen Innovative Solutions | |||
Business Acquisition [Line Items] | |||
Payments to acquire businesses, cash paid | $ 2,800,000 |
Acquisition-Date Fair Value of
Acquisition-Date 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 | Mar. 31, 2016 | Mar. 31, 2015 | Jul. 31, 2014 | Jul. 01, 2014 | Mar. 31, 2014 |
Acquired assets: | |||||
Goodwill | $ 33,003 | $ 31,534 | $ 37,990 | ||
Long-term deferred tax assets, net | $ 58,534 | $ 80,306 | |||
ECP Entwicklungsgesellschaft mbH | |||||
Acquired assets: | |||||
Cash and cash equivalents | $ 53 | ||||
Accounts receivable | 25 | ||||
Property and equipment | 619 | ||||
In-process research and development | $ 18,500 | 18,500 | |||
Goodwill | 1,964 | ||||
Long-term deferred tax assets, net | 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 | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Business Combinations [Abstract] | ||
Revenue | $ 230,323 | $ 183,689 |
Income before income tax provision | 28,871 | 4,802 |
Net income | $ 113,794 | $ 3,623 |
Marketable Securities (Detail)
Marketable Securities (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 |
Fair Value Disclosures [Abstract] | ||
Short-term marketable securities (within one year to maturity) | $ 163,822 | $ 109,557 |
Long-term marketable securities (one to five years to maturity) | 1,000 | 13,996 |
Available-for-sale securities, fair value disclosure | $ 164,822 | $ 123,553 |
Marketable Securities (Parenthe
Marketable Securities (Parenthetical) (Detail) | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Maximum | ||
Investment [Line Items] | ||
Short-term marketable securities, maturity period | 1 year | 1 year |
Long-term marketable securities, maturity period | 5 years | 5 years |
Minimum | ||
Investment [Line Items] | ||
Long-term marketable securities, maturity period | 1 year | 1 year |
Investable Marketable Securitie
Investable Marketable Securities (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | $ 164,759 | $ 123,556 |
Gross Unrealized Gains | 67 | 11 |
Gross Unrealized Losses | (4) | (14) |
Fair Market Value | 164,822 | 123,553 |
US Treasury mutual fund Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 45,635 | 19,487 |
Gross Unrealized Gains | 21 | |
Fair Market Value | 45,656 | 19,487 |
US Government-sponsored Enterprises Debt Securities | Short-term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 118,125 | 90,070 |
Gross Unrealized Gains | 45 | 9 |
Gross Unrealized Losses | (4) | (9) |
Fair Market Value | 118,166 | 90,070 |
US Government-sponsored Enterprises Debt Securities | Long-term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 999 | 13,999 |
Gross Unrealized Gains | 1 | 2 |
Gross Unrealized Losses | (5) | |
Fair Market Value | $ 1,000 | $ 13,996 |
Financial Instruments Measured
Financial Instruments Measured at Fair Value (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | $ 164,822 | $ 123,553 |
Contingent consideration | 7,563 | 6,510 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | 7,563 | 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 | 45,656 | 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 | 45,656 | 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 | 118,166 | 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 | 1,000 | 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 | 118,166 | 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 | $ 1,000 | $ 13,996 |
Change in Fair Value of Conting
Change in Fair Value of Contingent Consideration (Detail) - Contingent Consideration - Level 3 - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Level 3 liabilities, beginning balance | $ 6,510 | $ 0 |
Additions | 0 | 6,000 |
Payments | 0 | 0 |
Change in fair value | 1,053 | 510 |
Level 3 liabilities, ending balance | $ 7,563 | $ 6,510 |
Marketable Securities and Fai47
Marketable Securities and Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Jul. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Change in fair value of contingent consideration | $ 1,053 | $ 510 | |
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 |
Quantitative Information about
Quantitative Information about Inputs and Valuation Methodologies Used for Fair Value Measurements Classified in Level 3 (Detail) - USD ($) $ in Thousands | Jul. 01, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 |
ECP Entwicklungsgesellschaft mbH | ||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||||
Discount rate | 22.50% | |||
Level 3 | Contingent Consideration | ||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||||
Contingent consideration | $ 7,563 | $ 6,510 | $ 0 | |
Level 3 | Contingent Consideration | ECP Entwicklungsgesellschaft mbH | Probability weighted income approach | Base Case Scenario | ||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||||
Probability of occurrence | 40.00% | |||
Level 3 | Contingent Consideration | ECP Entwicklungsgesellschaft mbH | Minimum | Probability weighted income approach | ||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||||
Milestone date | 2,018 | |||
Discount rate | 8.00% | |||
Level 3 | Contingent Consideration | ECP Entwicklungsgesellschaft mbH | Minimum | Probability weighted income approach | Various Upside and Downside Scenarios | ||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||||
Probability of occurrence | 5.00% | |||
Level 3 | Contingent Consideration | ECP Entwicklungsgesellschaft mbH | Maximum | Probability weighted income approach | ||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||||
Milestone date | 2,021 | |||
Discount rate | 12.00% | |||
Level 3 | Contingent Consideration | ECP Entwicklungsgesellschaft mbH | Maximum | Probability weighted income approach | Various Upside and Downside Scenarios | ||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||||
Probability of occurrence | 30.00% |
Components of Accounts Receivab
Components of Accounts Receivable (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Receivables [Abstract] | ||||
Trade receivables | $ 42,945 | $ 32,005 | ||
Allowance for doubtful accounts | (124) | (177) | $ (185) | $ (136) |
Accounts receivable, net | $ 42,821 | $ 31,828 |
Summary of Allowance for Doubtf
Summary of Allowance for Doubtful Accounts Receivable (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Receivables [Abstract] | |||
Balance at Beginning of Period | $ 177 | $ 185 | $ 136 |
Additions | 42 | 115 | 81 |
Deductions | (95) | (123) | (32) |
Balance at End of Period | $ 124 | $ 177 | $ 185 |
Components of Inventories (Deta
Components of Inventories (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 7,993 | $ 7,417 |
Work-in-progress | 13,147 | 6,466 |
Finished goods | 5,600 | 2,891 |
Inventories | $ 26,740 | $ 16,774 |
Components of Property and Equi
Components of Property and Equipment (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 |
Property Plant And Equipment [Abstract] | ||
Machinery and equipment | $ 25,211 | $ 19,335 |
Furniture and fixtures | 1,510 | 1,000 |
Leasehold improvements | 11,833 | 2,874 |
Construction in progress | 3,712 | 1,685 |
Total cost | 42,266 | 24,894 |
Less accumulated depreciation | (19,082) | (15,767) |
Property and equipment, net | $ 23,184 | $ 9,127 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | $ 3.3 | $ 2.7 | $ 2.4 |
Goodwill and In-Process Resea54
Goodwill and In-Process Research and Development - Additional Information (Detail) - USD ($) | Jul. 01, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Jul. 31, 2014 | Mar. 31, 2014 |
Goodwill [Line Items] | |||||
Goodwill | $ 33,003,000 | $ 31,534,000 | $ 37,990,000 | ||
Accumulated impairment loss, goodwill | $ 0 | ||||
ECP Entwicklungsgesellschaft mbH | |||||
Goodwill [Line Items] | |||||
Goodwill | $ 1,964,000 | ||||
In-process research and development | $ 18,500,000 | $ 18,500,000 | |||
Fair value inputs, discount rate | 22.50% |
Goodwill Activity (Detail)
Goodwill Activity (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Beginning balance | $ 31,534 | $ 37,990 |
Additions | 1,964 | |
Foreign currency translation impact | 1,469 | (8,420) |
Ending balance | $ 33,003 | $ 31,534 |
Carrying value of In-Process Re
Carrying value of In-Process Research and Development (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Beginning balance | $ 14,711 | $ 0 |
Additions | 18,500 | |
Foreign currency translation impact | 685 | (3,789) |
Ending balance | $ 15,396 | $ 14,711 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - $ / shares | Mar. 31, 2016 | Mar. 31, 2015 |
Stockholders Equity Note [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 |
Stock Award Plans and Stock-B58
Stock Award Plans and Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
May. 31, 2015 | May. 31, 2014 | May. 31, 2013 | Jun. 30, 2011 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | Aug. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock-based compensation | $ 29,053 | $ 16,520 | $ 11,218 | |||||
Aggregate intrinsic value of options exercised in period | 58,600 | 20,000 | 16,300 | |||||
Proceeds from the exercise of stock options | 9,771 | 10,927 | 9,360 | |||||
Fair value of options vested in period | $ 2,600 | 2,600 | 2,500 | |||||
Expected dividend yield | 0.00% | |||||||
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 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Years of service | 5 years | |||||||
Non-employee director retirement age | 65 years | |||||||
Stock-based compensation related to accelerated vesting | $ 1,400 | |||||||
Two Thousand Fifteen Stock Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock option conversion description | . Each share of stock issued pursuant to a stock option or stock appreciation right counts as one share against the maximum number of shares issuable under the 2015 Plan, while each share of stock issued pursuant to any other type of award counts as 1.7 shares against the maximum number of shares issuable under the 2015 Plan. | |||||||
Shares available for future issuance under the Plan | 1,988,000 | |||||||
Two Thousand Eight Stock Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares available for future issuance under the Plan | 648,000 | |||||||
Description of share counts for awards other than 2008 Stock Incentive Plan | Each share of stock issued pursuant to any other type of award counts as 1.58 shares against the maximum number of shares issuable under the 2008 Plan for grants made on or after August 11, 2010 (and as 1.5 shares for grants made prior to that date). | |||||||
Employee Stock Option | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock award plans, outstanding stock options expiration period | 10 years | |||||||
Stock-based compensation | $ 4,866 | $ 2,708 | $ 2,679 | |||||
Unrecognized stock-based compensation expense | $ 6,000 | |||||||
Unrecognized stock-based compensation expense, weighted-average recognition period | 2 years 4 months 24 days | |||||||
Expected dividend yield | 0.00% | |||||||
Restricted stock units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Expected dividend yield | 0.00% | |||||||
Restricted stock units | Non-employee directors | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares available for future issuance under the Plan | 3,900 | |||||||
Stock-based compensation | $ 2,000 | |||||||
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. | |||||||
Restricted Stock and Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unrecognized stock-based compensation expense | $ 27,500 | |||||||
Unrecognized stock-based compensation expense, weighted-average recognition period | 2 years 3 months 18 days | |||||||
Weighted average grant-date fair value for restricted stock and restricted stock units granted | $ 87.45 | $ 22.07 | $ 23.34 | |||||
Fair value of restricted stock and restricted stock units vested in period | $ 39,600 | $ 11,200 | $ 6,000 | |||||
Restricted share unit issued | 696,000 | |||||||
Non-vested shares, outstanding | 1,263,000 | 1,160,000 | ||||||
Performance and Market-Based Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unrecognized stock-based compensation expense | $ 17,200 | |||||||
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] | ||||||||
Stock-based compensation | $ 500 | |||||||
Restricted share unit issued | 183,940 | 379,752 | 100,000 | |||||
Non-vested shares, outstanding | 123,000 | |||||||
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 | |||||||
Performance Based Restricted Stock Units Issued in May 2015 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Non-vested shares, outstanding | 183,940 | |||||||
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 | |||||||
Market Based Restricted Stock Units | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restricted Share earning | 0.00% | |||||||
Market Based Restricted Stock Units | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restricted Share earning | 300.00% | |||||||
Market Based Restricted Stock Units | Chief Financial Officer | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restricted share unit issued | 322,980 | |||||||
Employee Stock Purchase Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock-based compensation | $ 500 | $ 300 | $ 200 | |||||
ESPP, exercise price as a percentage of its market price | 85.00% |
Stock-Based Compensation Recogn
Stock-Based Compensation Recognized (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | $ 29,053 | $ 16,520 | $ 11,218 |
Cost of product revenue | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 895 | 665 | 614 |
Research and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 3,950 | 3,205 | 2,347 |
Selling, general and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | $ 24,208 | $ 12,650 | $ 8,257 |
Components of Stock-Based Compe
Components of Stock-Based Compensation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | $ 29,053 | $ 16,520 | $ 11,218 |
Restricted Stock Units and Restricted Stock | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 23,708 | 13,539 | 8,322 |
Stock Options | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 4,866 | 2,708 | 2,679 |
Employee Stock Purchase Plan | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | $ 479 | $ 273 | $ 217 |
Summary of Stock Option Activit
Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Options | ||
Outstanding at beginning of year | 2,892 | |
Granted | 183 | |
Exercised | (829) | |
Cancelled and expired | (2) | |
Outstanding at end of year | 2,244 | 2,892 |
Exercisable at end of year | 1,594 | |
Options vested and expected to vest at end of year | 2,182 | |
Weighted-Average Exercise Price | ||
Outstanding at beginning of year | $ 14.72 | |
Granted | 72.67 | |
Exercised | 11.78 | |
Cancelled and expired | 16.02 | |
Outstanding at end of year | 20.55 | $ 14.72 |
Exercisable at end of year | 13.84 | |
Options vested and expected to vest at end of year | $ 20.07 | |
Weighted-Average Remaining Contractual Term (years) | ||
Outstanding | 5 years 2 months 9 days | 5 years 2 months 5 days |
Exercisable at end of year | 4 years 18 days | |
Options vested and expected to vest at end of year | 5 years 1 month 10 days | |
Aggregate Intrinsic Value | ||
Outstanding at end of year | $ 166,722 | |
Exercisable at end of year | 129,040 | |
Options vested and expected to vest at end of year | $ 163,162 |
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 | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Valuation assumptions: | |||
Weighted average grant-date fair value | $ 29.57 | $ 9.29 | $ 9.85 |
Risk-free interest rate | 1.55% | 1.60% | 0.94% |
Expected option life (years) | 4 years 1 month 24 days | 4 years 2 months 9 days | 4 years 3 months |
Expected volatility | 49.70% | 49.30% | 51.70% |
Summary of Restricted Stock and
Summary of Restricted Stock and Time Based Restricted Stock Units Activity (Detail) - Restricted Stock and Restricted Stock Units - $ / shares shares in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Number of Shares | |||
Beginning Balance | 1,160 | ||
Granted | 696 | ||
Vested | (543) | ||
Forfeited | (50) | ||
Ending Balance | 1,263 | 1,160 | |
Weighted Average Grant Date Fair Value | |||
Beginning Balance | $ 21.90 | ||
Granted | 87.45 | $ 22.07 | $ 23.34 |
Vested | 22.52 | ||
Forfeited | 17.11 | ||
Ending Balance | $ 57.95 | $ 21.90 |
Monte Carlo Simulation Model to
Monte Carlo Simulation Model to Estimate Grant-Date Fair Value of Restricted Stock Units (Detail) | 12 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Dividend yield | 0.00% |
Restricted stock units | |
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 2 months 16 days |
Expected volatility | 47.20% |
Estimated grant date fair value (per share) | $ / shares | $ 107.10 |
Target performance (number of shares) | shares | 107,660 |
Components of Income Tax Provis
Components of Income Tax Provision (Benefit) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | [1] | Dec. 31, 2014 | [1] | Sep. 30, 2014 | [1] | Jun. 30, 2014 | [1] | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | ||
Income Tax Disclosure [Abstract] | ||||||||||||||||
Income (loss) before income taxes | $ 54,406 | $ 22,243 | $ 4,267 | |||||||||||||
Income (loss) before income taxes, foreign | 11,432 | 6,522 | 4,263 | |||||||||||||
Income (loss) before income taxes | 65,838 | 28,765 | 8,530 | |||||||||||||
Current income tax provision, Federal | 1,690 | 464 | (100) | |||||||||||||
Current income tax provision, State | 2,113 | 424 | (106) | |||||||||||||
Current income tax provision, Foreign | 1,592 | 1,283 | 525 | |||||||||||||
Current income tax provision | 5,395 | 2,171 | 319 | |||||||||||||
Deferred income tax provision, Federal | 18,769 | (66,140) | 825 | |||||||||||||
Deferred income tax provision, State | 1,284 | (13,430) | 35 | |||||||||||||
Deferred income tax provision, Foreign | 2,243 | (7,524) | ||||||||||||||
Deferred income tax provision | 22,296 | (87,094) | 860 | |||||||||||||
Total income tax provision (benefit) | $ 9,229 | $ 6,943 | $ 5,231 | $ 6,288 | $ (86,502) | $ 1,017 | $ 336 | $ 226 | $ 27,691 | $ (84,923) | [1] | $ 1,179 | ||||
[1] | Income tax benefit for the quarter and year ended March 31, 2015 were impacted by the release of the $101.5 million valuation allowance on certain deferred tax assets. |
Components of Net Deferred Taxe
Components of Net Deferred Taxes (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 |
Deferred tax assets | ||
NOL carryforwards and tax credit carryforwards | $ 34,305 | $ 60,081 |
Stock-based compensation | 14,879 | 10,568 |
Nondeductible reserves and accruals | 8,550 | 7,573 |
Amortizable intangibles other than goodwill | 2,420 | 2,993 |
Capitalized research and development | 442 | 1,597 |
Foreign NOL carryforwards | 17,635 | 19,617 |
Deferred revenue | 3,351 | 2,669 |
Depreciation | 353 | 276 |
Other, net | 1,802 | 1,298 |
Deferred Tax Assets, Gross, Total | 83,737 | 106,672 |
Deferred tax liabilities | ||
Indefinite lived intangibles | (8,480) | (7,530) |
In-process research and development | (4,649) | (4,443) |
Domestic deferred tax liability on foreign NOL carryforwards | (10,488) | (12,276) |
Deferred Tax Liabilities, Net | (23,617) | (24,249) |
Net deferred tax assets | 60,120 | 82,423 |
Valuation allowance | (2,418) | (2,912) |
Net deferred tax assets | 57,702 | 79,511 |
Long-term deferred tax assets, net | 58,534 | 80,306 |
Long-term deferred tax liabilities | (832) | (795) |
Net deferred tax assets | $ 57,702 | $ 79,511 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Income Taxes [Line Items] | |||
Current deferred tax assets, net | $ 35,100 | $ 35,100 | |
Reversal of valuation | 101,500 | ||
Valuation allowance | $ 2,912 | $ 2,418 | 2,912 |
Stock-based compensation tax deductions in excess of book compensation expense | $ 3,567 | $ 606 | |
Earliest Tax Year | |||
Income Taxes [Line Items] | |||
Net operating loss carry forwards expiration period | 2,018 | ||
Latest Tax Year | |||
Income Taxes [Line Items] | |||
Net operating loss carry forwards expiration period | 2,034 | ||
Federal | |||
Income Taxes [Line Items] | |||
Net operating loss carry forwards | $ 173,200 | ||
Research and development credit carry forwards | 12,400 | ||
Net operating loss carry forwards to stock-based compensation | 142,000 | ||
State | |||
Income Taxes [Line Items] | |||
Research and development credit carry forwards | 8,000 | ||
Federal Ministry of Finance, Germany | |||
Income Taxes [Line Items] | |||
Net operating loss carry forwards | 25,000 | ||
Ministry of the Economy, Finance and Industry, France | |||
Income Taxes [Line Items] | |||
Net operating loss carry forwards | $ 2,400 |
Differences Between Federal Sta
Differences Between Federal Statutory Income Tax Rate and Effective Tax Rates (Detail) | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Statutory income tax rate | 35.00% | 35.00% | 34.00% |
Change in valuation allowance | 0.70% | (342.80%) | (53.70%) |
Credits | (4.10%) | (1.90%) | (20.10%) |
Foreign taxes | 2.50% | 4.50% | |
State taxes, net | 3.70% | 4.00% | 12.90% |
Permanent differences | 3.00% | 3.90% | 0.40% |
Stock based compensation | 0.30% | 0.30% | 0.90% |
Rate differential on foreign operations | 0.20% | 31.10% | |
Other | 1.00% | 1.60% | 8.40% |
Effective tax rate | 42.10% | (295.20%) | 13.90% |
Changes in Valuation Allowance
Changes in Valuation Allowance for Deferred Tax Assets (Detail) - Valuation Allowance of Deferred Tax Assets - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Valuation Allowance [Line Items] | |||
Balance at Beginning of Period | $ 2,912 | $ 102,093 | $ 106,670 |
Decreases recorded as benefit to income tax provision | (1,171) | (101,468) | (4,577) |
Increases due to foreign net operating loss in certain foreign jurisdictions | 677 | 2,287 | |
Balance at End of Period | $ 2,418 | $ 2,912 | $ 102,093 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | Dec. 09, 2015USD ($) | Oct. 31, 2015ft² | Sep. 30, 2015Patent | Jul. 31, 2013ft² | Mar. 31, 2016USD ($)ft²Amendment | Mar. 31, 2015USD ($) | Mar. 31, 2014USD ($) | Apr. 30, 2016USD ($) | Mar. 31, 2016EUR (€)ft²Amendment | Dec. 31, 2015USD ($) | Apr. 30, 2014USD ($) |
Commitments and Contingencies [Line Items] | |||||||||||
Office space under operating lease | ft² | 125,560 | 125,560 | |||||||||
Purchase price of property amount | $ 16,500,000 | ||||||||||
Number of amendments | Amendment | 2 | 2 | |||||||||
Rent expense | $ 2,400,000 | $ 1,900,000 | $ 1,500,000 | ||||||||
License agreement, upfront payment | $ 500,000 | $ 1,500,000 | |||||||||
License agreement, maximum agreed additional payments upon achievement of development milestones | 2,000,000 | $ 4,500,000 | |||||||||
License agreement, milestone payment | $ 600,000 | ||||||||||
Payments obligations on achievement of certain development and regulatory milestones | 3,000,000 | ||||||||||
Patents allegedly infringed upon, number | Patent | 2 | ||||||||||
Subsequent Event | |||||||||||
Commitments and Contingencies [Line Items] | |||||||||||
License agreement, milestone payment | $ 500,000 | ||||||||||
Europe | |||||||||||
Commitments and Contingencies [Line Items] | |||||||||||
Facilities leases, base rent per month | 73,000 | € 64,500 | |||||||||
Lease Agreements | Europe | |||||||||||
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 | ||||||||||
Lease Agreement Adjacent To Aachen Facility | Europe | |||||||||||
Commitments and Contingencies [Line Items] | |||||||||||
Office space under operating lease | ft² | 30,000 | ||||||||||
Lease, expiration date | Jun. 30, 2016 | ||||||||||
For March 2016 through February 2018 | |||||||||||
Commitments and Contingencies [Line Items] | |||||||||||
Facilities leases, base rent per month | 84,914 | ||||||||||
For March 2018 through February 2021 | |||||||||||
Commitments and Contingencies [Line Items] | |||||||||||
Facilities leases, base rent per month | $ 87,530 |
Future Minimum Lease Payments u
Future Minimum Lease Payments under All Significant Non Cancelable Operating Leases and Contractual Obligations (Detail) $ in Thousands | Mar. 31, 2016USD ($) |
Leases [Abstract] | |
2,017 | $ 2,252 |
2,018 | 2,185 |
2,019 | 2,017 |
2,020 | 1,979 |
2,021 | 1,892 |
Thereafter | 2,048 |
Total future minimum lease payments | $ 12,373 |
Accrued Expenses (Detail)
Accrued Expenses (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 |
Payables and Accruals [Abstract] | ||
Employee compensation | $ 18,359 | $ 15,978 |
Sales and income taxes | 2,527 | 1,506 |
Professional, legal and accounting fees | 1,764 | 710 |
Research and development | 1,587 | 1,744 |
Marketing | 1,146 | |
Warranty | 998 | 1,103 |
Other | 2,001 | 853 |
Accrued expenses | $ 28,382 | $ 21,894 |
Segment and Enterprise Wide D73
Segment and Enterprise Wide Disclosures - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016USD ($)Segment | Mar. 31, 2015USD ($) | Mar. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Number of business segments | Segment | 1 | ||
International | |||
Segment Reporting Information [Line Items] | |||
Percentage of total product revenue | 8.00% | 10.00% | 9.00% |
Long-lived assets | $ | $ 5.9 | $ 3.8 |
Summary of Unaudited Quarterly
Summary of Unaudited Quarterly Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | ||||||
Disclosure Unaudited Quarterly Financial Information [Abstract] | ||||||||||||||||
Total revenues | $ 93,957 | $ 85,795 | $ 76,359 | $ 73,432 | $ 67,557 | $ 62,005 | $ 51,938 | $ 48,811 | $ 329,543 | $ 230,311 | $ 183,643 | |||||
Cost of product revenue | 14,663 | 12,744 | 12,144 | 10,868 | 10,806 | 9,838 | 9,612 | 9,689 | 50,419 | 39,945 | 37,322 | |||||
Other operating expenses | 59,481 | 55,608 | 51,398 | 47,533 | 44,388 | 38,504 | 38,148 | 40,660 | 214,020 | 161,700 | ||||||
Other income (expense), net | 414 | 55 | 149 | 116 | 9 | 38 | (3) | 55 | 734 | 99 | 167 | |||||
Income before income taxes | 20,227 | 17,498 | 12,966 | 15,147 | 12,372 | 13,701 | 4,175 | (1,483) | 65,838 | 28,765 | 8,530 | |||||
Income tax (benefit) provision | 9,229 | 6,943 | 5,231 | 6,288 | (86,502) | [1] | 1,017 | [1] | 336 | [1] | 226 | [1] | 27,691 | (84,923) | [1] | 1,179 |
Net income | $ 10,998 | $ 10,555 | $ 7,735 | $ 8,859 | $ 98,874 | $ 12,684 | $ 3,839 | $ (1,709) | $ 38,147 | $ 113,688 | $ 7,351 | |||||
Basic net income (loss) per share | $ 0.26 | $ 0.25 | $ 0.18 | $ 0.21 | $ 2.40 | $ 0.31 | $ 0.09 | $ (0.04) | $ 0.90 | $ 2.80 | $ 0.19 | |||||
Diluted net income (loss) per share | $ 0.24 | $ 0.23 | $ 0.17 | $ 0.20 | $ 2.24 | $ 0.30 | $ 0.09 | $ (0.04) | $ 0.85 | $ 2.65 | $ 0.18 | |||||
[1] | Income tax benefit for the quarter and year ended March 31, 2015 were impacted by the release of the $101.5 million valuation allowance on certain deferred tax assets. |
Summary of Unaudited Quarterl75
Summary of Unaudited Quarterly Results of Operations (Parenthetical) (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2015USD ($) | |
Quarterly Financial Information Disclosure [Abstract] | |
Reversal of valuation | $ 101.5 |