ClearOne (CLRO) 10-Q 8 Nov 13 2013 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2013	Nov. 07, 2013
Document and Entity Information	'	'
Entity Registrant Name	'CLEARONE INC	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-13	'
Amendment Flag	'false	'
Entity Central Index Key	'0000840715	'
Current Fiscal Year End Date	'--12-31	'
Entity Common Stock, Shares Outstanding	'	8,983,407
Entity Filer Category	'Smaller Reporting Company	'
Entity Current Reporting Status	'Yes	'
Entity Voluntary Filers	'No	'
Entity Well-known Seasoned Issuer	'No	'
Document Fiscal Year Focus	'2013	'
Document Fiscal Period Focus	'Q3	'

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Current assets:	'	'
Cash and cash equivalents	$18,190	$55,509
Marketable securities	2,017	0
Receivables, net of allowance for doubtful accounts of $94 and $60, respectively	8,442	8,388
Inventories, net	12,442	10,873
Deferred income taxes	3,148	3,148
Prepaid expenses and other assets	1,673	1,369
Total current assets	45,912	79,287
Long-term marketable securities	23,359	0
Long-term inventories, net	1,120	1,955
Property and equipment, net	2,006	1,708
Intangibles, net	3,854	4,258
Goodwill	3,472	3,472
Deferred income taxes	1,195	1,195
Other assets	77	64
Total assets	80,995	91,939
Current Liabilities:	'	'
Accounts payable	3,632	2,302
Accrued liabilities	2,305	2,143
Income taxes payable	0	14,782
Deferred product revenue	4,105	3,593
Total current liabilities	10,042	22,820
Deferred rent	326	422
Other long-term liabilities	2,029	2,029
Total liabilities	12,397	25,271
Shareholders' equity:	'	'
Common stock, par value $0.001, 50,000,000 shares authorized, 9,004,901 and 9,163,462 shares issued and outstanding	9	9
Additional paid-in capital	38,955	40,430
Accumulated other comprehensive loss	-33	0
Retained earnings	29,667	26,229
Total shareholders' equity	68,598	66,668
Total liabilities and shareholders' equity	$80,995	$91,939

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parentheticals) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, except Share data, unless otherwise specified
Statement of Financial Position [Abstract]	'	'
Allowance for doubtful accounts	$94	$60
Common Stock:	'	'
Par value (in dollars per share)	$0.00	$0.00
Common stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, sharse issued (in shares)	8,983,407	9,163,462
Common stock, shares outstanding (in shares)	8,983,407	9,163,462

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Revenue	$12,366	$11,573	$35,362	$33,382
Cost of goods sold	4,921	4,856	14,054	13,464
Gross profit	7,445	6,717	21,308	19,918
Operating expenses:	'	'	'	'
Sales and marketing	2,220	1,821	6,575	6,209
Research and product development	1,788	1,959	5,497	5,996
General and administrative	1,405	1,470	4,639	4,561
Proceeds from litigation, net	-272	0	-272	-250
Total operating expenses	5,141	5,250	16,439	16,516
Operating income	2,304	1,467	4,869	3,402
Other income (expense), net	85	29	117	40
Income before income taxes	2,389	1,496	4,986	3,442
Provision for income taxes	726	492	1,548	1,310
Net income	1,663	1,004	3,438	2,132
Basic earnings per common share	$0.18	$0.11	$0.38	$0.23
Diluted earnings per common share	$0.18	$0.11	$0.36	$0.23
Basic weighted average shares outstanding	9,027,764	9,113,713	9,090,903	9,106,455
Diluted weighted average shares outstanding	9,406,941	9,193,574	9,485,808	9,219,161
Unrealized gain (loss) on available-for-sale securities	55	0	-33	0
Comprehensive income	$1,718	$1,004	$3,405	$2,132

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities:	'	'
Net income	$3,438	$2,132
Adjustments to reconcile net income to net cash provided by operations:	'	'
Depreciation and amortization expense	979	1,012
Amortization of deferred rent	-77	-21
Share-based compensation expense	205	176
Provision for (recoveries of) doubtful accounts, net	61	6
Inventory valuation reserve adjustments	524	278
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Operating Activities	-76	0
Changes in operating assets and liabilities:	'	'
Receivables	-115	784
Inventories	-1,258	88
Deferred income taxes	0	-11
Prepaid expenses and other assets	-262	336
Accounts payable	1,180	-1,403
Accrued liabilities	143	123
Income taxes payable	-14,782	-1,155
Deferred product revenue	512	141
Other long-term liabilities	0	138
Net cash (used in) provided by operating activities	-9,528	2,624
Cash flows from investing activities:	'	'
Purchase of property and equipment	-723	-260
Purchase of marketable securities	-25,409	0
Payment towards business acquisitions	0	-4,632
Net cash (used in) investing activities	-26,132	-4,892
Cash flows from financing activities:	'	'
Proceeds from the exercise of stock options	456	301
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Financing Activities	76	0
Treasury stock purchased	-2,191	-384
Net cash (used in) financing activities	-1,659	-83
Net (decrease) in cash and cash equivalents	-37,319	-2,351
Cash and cash equivalents at the beginning of the period	55,509	16,683
Cash and cash equivalents at the end of the period	18,190	14,332
Supplemental disclosure of cash flow information:	'	'
Cash paid for income taxes	$16,987	$1,393

Consolidated_Statements_of_Cas1

Consolidated Statements of Cash Flows - Suppplemental Cash Flow Disclosure (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Other Significant Noncash Transactions [Line Items]	'	'
Property and equipment	$150	$0
Total Non-cash Transactions	0	4,632
VCON Video Conferencing, Ltd. (VCON)	'	'
Other Significant Noncash Transactions [Line Items]	'	'
Inventory	0	40
Property and equipment	0	34
Product warranty liability	0	-8
Proprietary software	0	2,247
Goodwill	$0	$2,319

Business_Description_Basis_of_

Business Description, Basis of Presentation and Significant Accounting Policies	9 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
Business Description, Basis of Presentation and Significant Accounting Policies	'
	Business Description, Basis of Presentation and Significant Accounting Policies
	Business Description:
	ClearOne, Inc., together with its subsidiaries (collectively, “ClearOne” or the “Company”), is a global company that designs, develops and sells conferencing, collaboration, streaming and digital signage solutions for audio and visual communications. The performance and simplicity of its advanced comprehensive solutions offer unprecedented levels of functionality, reliability and scalability.
	Basis of Presentation:
	The fiscal year for ClearOne is the 12 months ending on December 31st.  The consolidated financial statements include the accounts of ClearOne and its subsidiaries. All significant inter-company accounts and transactions have been eliminated.
	These accompanying interim condensed consolidated financial statements for the three and nine months ended September 30, 2013 and 2012, respectively, have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and are not audited. Certain information and footnote disclosures that are usually included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been either condensed or omitted in accordance with SEC rules and regulations. The accompanying consolidated financial statements contain all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the Company's financial position as of September 30, 2013 and December 31, 2012, the results of operations for the three and nine months ended September 30, 2013 and 2012, and the statements of cash flows for the nine months ended September 30, 2013 and 2012. The results of operations for the three and nine months ended September 30, 2013 and 2012 are not necessarily indicative of the results for a full-year period.  These interim condensed consolidated financial statements should be read in conjunction with the financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2012 filed with the SEC on March 25, 2013, as amended on April 30, 2013.
	Significant Accounting Policies:
	The significant accounting policies were described in Note 2 to the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. There have been no changes to these policies during the nine months ended September 30, 2013 that are of significance or potential significance to the Company.
	Warranty Costs – The Company accrues for warranty costs based on estimated warranty return rates and estimated costs to repair. Factors that affect the Company’s warranty liability include the number of units sold, historical and anticipated rates of warranty returns, and repair cost. The Company reviews the adequacy of its recorded warranty accrual on a quarterly basis.
	The details of changes in the Company’s warranty accrual are as follows:
		September 30, 2013			31-Dec-12
	Balance at the beginning of year	$	385		$	467
	Warranty accruals/additions	354			443
	Warranty usage	(374		)	(525		)
	Balance at end of period	$	365		$	385
	Earnings Per Share – The following table sets forth the computation of basic and diluted earnings per common share:
		Three months ended September 30,						Nine months ended September 30,
		2013			2012			2013		2012
	Numerator:
	Net income	$	1,663		$	1,004		$	3,438	$	2,132
	Denominator:
	Basic weighted average shares outstanding	9,027,764			9,113,713			9,090,903		9,106,455
	Dilutive common stock equivalents using treasury stock method	379,177			79,861			394,905		112,706
	Diluted weighted average shares outstanding	9,406,941			9,193,574			9,485,808		9,219,161
	Basic earnings per common share	$	0.18		$	0.11		$	0.38	$	0.23
	Diluted earnings per common share	$	0.18		$	0.11		$	0.36	$	0.23
	Weighted average options outstanding	1,143,283			1,215,747			1,131,575		1,195,599
	Anti-dilutive options not included in the computations	167,845			799,203			157,197		799,203

Marketable_Securities

Marketable Securities	9 Months Ended
	Sep. 30, 2013
Investments, Debt and Equity Securities [Abstract]	'
Marketable Securities	'
	Marketable Securities
	The Company has classified its marketable securities as available-for-sale securities. These securities are carried at estimated fair value with unrealized holding gains and losses included in accumulated other comprehensive income/loss in stockholders' equity until realized. Gains and losses on marketable security transactions are reported on the specific-identification method. Dividend and interest income are recognized when earned.
	The amortized cost, gross unrealized holding gains, gross unrealized holding losses, and fair value for available-for-sale securities by major security type and class of security at September 30, 2013 and December 31, 2012 were as follows:
	(In thousands)			Amortized			Gross		Gross			Estimated
				cost			unrealized		unrealized			fair value
							holding		holding
							gains		losses
	30-Sep-13
		Available-for-sale securities:
			Corporate bonds and notes	$	18,712		$	34	$	(54	)	$	18,692
			Municipal bonds	6,697			13		(26		)	6,684
		Total available-for-sale securities		$	25,409		$	47	$	(80	)	$	25,376
	(In thousands)			Amortized			Gross		Gross			Estimated
				cost			unrealized		unrealized			fair value
							holding		holding
							gains		losses
	December 31, 2012
		Available-for-sale securities:
			Corporate bonds and notes	$	—		$	—	$	—		$	—
			Municipal bonds	—			—		—			—
		Total available-for-sale securities		$	—		$	—	$	—		$	—
	Maturities of marketable securities classified as available-for-sale securities were as follows at September 30, 2013:
	(In thousands)		Amortized			Estimated
			cost			fair value
		Due within one year	$	2,022		$	2,017
		Due after one year through five years	21,344			21,327
		Due after five years through ten years	2,043			2,032
	Total available-for-sale securities		$	25,409		$	25,376

Intangible_Assets

Intangible Assets	9 Months Ended
	Sep. 30, 2013
Goodwill and Intangible Assets Disclosure [Abstract]	'
Intangible Assets	'
	Intangible Assets
	Intangible assets as of September 30, 2013 and December 31, 2012 consisted of the following:
		Estimated useful lives		30-Sep-13				31-Dec-12
	Tradename	7 years		$	435			$	435
	Patents and technological know-how	10 years		2,070				2,070
	Proprietary software	3 to 15 years		3,120				2,961
	In-process research and development	Indefinite		—				159
	Other	5 years		49				49
				5,674				5,674
	Accumulated amortization			(1,820		)		(1,416		)
				$	3,854			$	4,258
	The amortization of intangibles with finite lives for the three and nine months ended September 30, 2013 and 2012 was as follows:
		Three months ended September 30,								Nine months ended September 30,
		2013				2012				2013		2012
	Amortization of intangibles with finite lives	$	142			$	147			$	404	$	379
	The estimated future amortization expense of intangible assets is as follows:
	Years ending December 31,
	2013 (remainder)	$	144
	2014	559
	2015	515
	2016	478
	2017	389
	Thereafter	1,769
		$	3,854

Inventories

Inventories	9 Months Ended
	Sep. 30, 2013
Inventory Disclosure [Abstract]	'
Inventories	'
	Inventories
	Inventories, net of reserves, as of September 30, 2013 and December 31, 2012 consisted of the following:
		30-Sep-13		31-Dec-12
	Current:
	Raw materials	$	1,125	$	734
	Finished goods	11,317		10,139
		$	12,442	$	10,873
	Long-term:
	Raw materials	$	527	$	891
	Finished goods	593		1,064
		$	1,120	$	1,955
	Long-term inventory represents inventory held in excess of our current (next 12 months) requirements based on our recent sales and forecasted level of sales. We expect to sell the above inventory, net of reserves, at or above the stated cost and believe that no loss will be incurred on its sale.
	Current finished goods include consigned inventory in the amounts of approximately $1,486 and $1,289 as of September 30, 2013 and December 31, 2012, respectively. Consigned inventory represents inventory at distributors and other customers where revenue recognition criteria have not yet been achieved.
	The following table summarizes the losses incurred on valuation of inventory at lower of cost or market value and write-off of obsolete inventory during the three and nine months ended September 30, 2013 and 2012, respectively.
		Three months ended September 30,				Nine months ended September 30,
		2013		2012		2013		2012
	Losses incurred on valuation of inventory and write-off of obsolete inventory	$	256	$	—	$	524	$	278

Sharebased_Compensation_Expens

Share-based Compensation Expense	9 Months Ended
	Sep. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Share-Based Compensation Expense	'
	Share-based Compensation Expense
	Share-based compensation expense for the three and nine months ended September 30, 2013 and 2012 has been recorded as follows:
		Three months ended September 30,						Nine months ended September 30,
		2013			2012			2013		2012
	Cost of goods sold	$	2		$	2		$	7	$	3
	Sales and marketing	21			15			55		45
	Research and product development	14			9			37		26
	General and administrative	42			39			106		102
		$	79		$	65		$	205	$	176
	As of September 30, 2013, the total remaining unrecognized compensation cost related to non-vested stock options, net of forfeitures, was approximately $894, which will be recognized over a weighted average period of 2.76 years.
	During the three and nine months ended September 30, 2013, we granted 70,000 and 127,500 stock options, respectively. During the three and nine months ended September 30, 2012, we granted 92,000 and 187,000 stock options, respectively. We use judgment in determining the fair value of the share-based payments on the date of grant using an option-pricing model with assumptions regarding a number of highly complex and subjective variables.  These variables include the risk-free interest rate of the awards, the expected life of the awards, the expected volatility over the term of the awards, the expected dividends of the awards, and an estimate of the amount of awards that are expected to be forfeited.  We use the Black-Scholes option pricing model to determine the fair value of share-based payments granted under ASC Topic 718.
	In applying the Black-Scholes methodology to the options granted, the Company used the following assumptions:
		Three months ended September 30,			Nine months ended September 30,
		2013		2012	2013		2012
	Risk-free interest rate, average	2.30%		1.10%	1.80%		1.30%
	Expected option life, average	6.7 years		7.3 years	6.8 years		7.2 years
	Expected price volatility, average	49.50%		51.10%	49.80%		51.40%
	Weighted average per share fair value	$4.28		$2.13	$4.38		$2.19

Shareholders_Equity

Shareholders' Equity	9 Months Ended
	Sep. 30, 2013
Stockholders' Equity Note [Abstract]	'
Shareholders' Equity	'
	Shareholders’ Equity
	The following table summarizes the change in shareholders’ equity during the three and nine months ended September 30, 2013 and 2012, respectively:
		Three months ended September 30,						Nine months ended September 30,
		2013			2012			2013			2012
	Balance at the beginning of the period	$	67,655		$	40,892		$	66,668		$	39,664
	Net income during the period	1,663			1,004			3,438			2,132
	Treasury stock purchased	(1,200		)	(292		)	(2,191		)	(384		)
	Share-based compensation	79			65			205			176
	Tax benefit - stock option exercises	55			—			55			—
	Exercise of stock options	292			220			456			301
	Unrealized gain or loss in investments	54			—			(33		)	—
	Balance at end of the period	$	68,598		$	41,889		$	68,598		$	41,889

Fair_Value_Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2013
Fair Value Disclosures [Abstract]	'
Fair Value Measurements	'
	Fair Value Measurements
	The fair value of the Company's financial instruments reflects the amounts that the Company estimates it will receive in connection with the sale of an asset or pay in connection with the transfer of a liability in an orderly transaction between market participants at the measurement date (exit price). The fair value hierarchy prioritizes the use of inputs used in valuation techniques into the following three levels:
	Level 1 - Quoted prices in active markets for identical assets and liabilities.
	Level 2 - Observable inputs other than quoted prices in active markets for identical assets and liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. This category generally includes U.S. Government and agency securities; municipal securities; mutual funds and securities sold and not yet settled. The Company's marketable securities primarily utilize broker quotes in a non-active market for valuation of these securities.
	Level 3 - Unobservable inputs.
	For Level 2 securities, the Company uses a third-party pricing service which provides documentation on an ongoing basis that includes, among other things, pricing information with respect to reference data, methodology, inputs summarized by asset class, pricing application and corroborative information. The Company reviews, tests and validates this information. The following table sets forth the fair value of the financial instruments re-measured by the Company as of September 30, 2013 and December 31, 2012:
			Level 1		Level 2		Level 3		Total
	(In thousands)
	30-Sep-13
	Corporate bonds and notes		$	—	$	18,692	$	—	$	18,692
	Municipal bonds		—		6,684		—		6,684
		Total	$	—	$	25,376	$	—	$	25,376
			Level 1		Level 2		Level 3		Total
	(In thousands)
	December 31, 2012
	Corporate bonds and notes		$	—	$	—	$	—	$	—
	Municipal bonds		—		—		—		—
		Total	$	—	$	—	$	—	$	—

Income_Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2013
Income Tax Disclosure [Abstract]	'
Income Taxes	'
	Income Taxes
	The Company's forecasted effective tax rate at September 30, 2013 was 32.9%, a (4.5)% decrease from the 37.4% effective tax rate recorded at December 31, 2012. The forecasted effective tax rate of 32.9% excludes jurisdictions for which no benefit from forecasted current year losses is anticipated. Including losses from such jurisdictions results in a forecasted effective tax rate of 37.8%. Our forecasted effective tax rate could fluctuate significantly on a quarterly basis and could change to the extent that earnings, in countries with tax rates that differ from that of the U.S., differ from amounts anticipated at September 30, 2013.
	After discrete benefit of $417, the effective tax rate for the nine months ended September 30, 2013 was 31.0%. The discrete benefit is primarily attributable to the recognition in 2013 of U.S. research and development credit pertaining to 2012.

Subsequent_Events

Subsequent Events	9 Months Ended
	Sep. 30, 2013
Subsequent Events [Abstract]	'
Subsequent Events	'
	Subsequent Events
	The Company evaluated its consolidated financial statements as of and for the nine months ended September 30, 2013 for subsequent events through the date the financial statements were issued. The Company is not aware of any subsequent event which would require recognition or disclosure in the financial statements.

Business_Description_Basis_of_1

Business Description, Basis of Presentation and Significant Accounting Policies - Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
Warranty Costs	'
	Warranty Costs – The Company accrues for warranty costs based on estimated warranty return rates and estimated costs to repair. Factors that affect the Company’s warranty liability include the number of units sold, historical and anticipated rates of warranty returns, and repair cost. The Company reviews the adequacy of its recorded warranty accrual on a quarterly basis.

Business_Description_Basis_of_2

Business Description, Basis of Presentation and Significant Accounting Policies - Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
Schedule of Product Warranty Liability	'
	The details of changes in the Company’s warranty accrual are as follows:
		September 30, 2013			31-Dec-12
	Balance at the beginning of year	$	385		$	467
	Warranty accruals/additions	354			443
	Warranty usage	(374		)	(525		)
	Balance at end of period	$	365		$	385
Schedule of Earnings Per Share, Basic and Diluted	'
	Earnings Per Share – The following table sets forth the computation of basic and diluted earnings per common share:
		Three months ended September 30,						Nine months ended September 30,
		2013			2012			2013		2012
	Numerator:
	Net income	$	1,663		$	1,004		$	3,438	$	2,132
	Denominator:
	Basic weighted average shares outstanding	9,027,764			9,113,713			9,090,903		9,106,455
	Dilutive common stock equivalents using treasury stock method	379,177			79,861			394,905		112,706
	Diluted weighted average shares outstanding	9,406,941			9,193,574			9,485,808		9,219,161
	Basic earnings per common share	$	0.18		$	0.11		$	0.38	$	0.23
	Diluted earnings per common share	$	0.18		$	0.11		$	0.36	$	0.23
	Weighted average options outstanding	1,143,283			1,215,747			1,131,575		1,195,599
	Anti-dilutive options not included in the computations	167,845			799,203			157,197		799,203

Marketable_Securities_Tables

Marketable Securities (Tables)	9 Months Ended
	Sep. 30, 2013
Investments, Debt and Equity Securities [Abstract]	'
Schedule of Available-for-sale Securities Reconciliation	'
	The amortized cost, gross unrealized holding gains, gross unrealized holding losses, and fair value for available-for-sale securities by major security type and class of security at September 30, 2013 and December 31, 2012 were as follows:
	(In thousands)			Amortized			Gross		Gross			Estimated
				cost			unrealized		unrealized			fair value
							holding		holding
							gains		losses
	30-Sep-13
		Available-for-sale securities:
			Corporate bonds and notes	$	18,712		$	34	$	(54	)	$	18,692
			Municipal bonds	6,697			13		(26		)	6,684
		Total available-for-sale securities		$	25,409		$	47	$	(80	)	$	25,376
	(In thousands)			Amortized			Gross		Gross			Estimated
				cost			unrealized		unrealized			fair value
							holding		holding
							gains		losses
	December 31, 2012
		Available-for-sale securities:
			Corporate bonds and notes	$	—		$	—	$	—		$	—
			Municipal bonds	—			—		—			—
		Total available-for-sale securities		$	—		$	—	$	—		$	—
Available-for-sale Securities	'
	Maturities of marketable securities classified as available-for-sale securities were as follows at September 30, 2013:
	(In thousands)		Amortized			Estimated
			cost			fair value
		Due within one year	$	2,022		$	2,017
		Due after one year through five years	21,344			21,327
		Due after five years through ten years	2,043			2,032
	Total available-for-sale securities		$	25,409		$	25,376

Intangible_Assets_Intangible_A

Intangible Assets Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2013
Goodwill and Intangible Assets Disclosure [Abstract]	'
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets	'
	Intangible assets as of September 30, 2013 and December 31, 2012 consisted of the following:
		Estimated useful lives		30-Sep-13				31-Dec-12
	Tradename	7 years		$	435			$	435
	Patents and technological know-how	10 years		2,070				2,070
	Proprietary software	3 to 15 years		3,120				2,961
	In-process research and development	Indefinite		—				159
	Other	5 years		49				49
				5,674				5,674
	Accumulated amortization			(1,820		)		(1,416		)
				$	3,854			$	4,258
Schedule of Finite-Lived Intangible Assets Amortization Expense	'
	The amortization of intangibles with finite lives for the three and nine months ended September 30, 2013 and 2012 was as follows:
		Three months ended September 30,								Nine months ended September 30,
		2013				2012				2013		2012
	Amortization of intangibles with finite lives	$	142			$	147			$	404	$	379
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	'
	The estimated future amortization expense of intangible assets is as follows:
	Years ending December 31,
	2013 (remainder)	$	144
	2014	559
	2015	515
	2016	478
	2017	389
	Thereafter	1,769
		$	3,854

Inventories_Tables

Inventories (Tables)	9 Months Ended
	Sep. 30, 2013
Inventory Disclosure [Abstract]	'
Schedule of inventory, net of reserves	'
	Inventories, net of reserves, as of September 30, 2013 and December 31, 2012 consisted of the following:
		30-Sep-13		31-Dec-12
	Current:
	Raw materials	$	1,125	$	734
	Finished goods	11,317		10,139
		$	12,442	$	10,873
	Long-term:
	Raw materials	$	527	$	891
	Finished goods	593		1,064
		$	1,120	$	1,955
Schedule of Non-Current Inventory Valuation Losses	'
	The following table summarizes the losses incurred on valuation of inventory at lower of cost or market value and write-off of obsolete inventory during the three and nine months ended September 30, 2013 and 2012, respectively.
		Three months ended September 30,				Nine months ended September 30,
		2013		2012		2013		2012
	Losses incurred on valuation of inventory and write-off of obsolete inventory	$	256	$	—	$	524	$	278

Sharebased_Compensation_Expens1

Share-based Compensation Expense (Tables)	9 Months Ended
	Sep. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Schedule of share-based compensation expense	'
	Share-based compensation expense for the three and nine months ended September 30, 2013 and 2012 has been recorded as follows:
		Three months ended September 30,						Nine months ended September 30,
		2013			2012			2013		2012
	Cost of goods sold	$	2		$	2		$	7	$	3
	Sales and marketing	21			15			55		45
	Research and product development	14			9			37		26
	General and administrative	42			39			106		102
		$	79		$	65		$	205	$	176
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	'
	In applying the Black-Scholes methodology to the options granted, the Company used the following assumptions:
		Three months ended September 30,			Nine months ended September 30,
		2013		2012	2013		2012
	Risk-free interest rate, average	2.30%		1.10%	1.80%		1.30%
	Expected option life, average	6.7 years		7.3 years	6.8 years		7.2 years
	Expected price volatility, average	49.50%		51.10%	49.80%		51.40%
	Weighted average per share fair value	$4.28		$2.13	$4.38		$2.19

Shareholders_Equity_Tables

Shareholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2013
Stockholders' Equity Note [Abstract]	'
Schedule of Shareholders' Equity	'
	The following table summarizes the change in shareholders’ equity during the three and nine months ended September 30, 2013 and 2012, respectively:
		Three months ended September 30,						Nine months ended September 30,
		2013			2012			2013			2012
	Balance at the beginning of the period	$	67,655		$	40,892		$	66,668		$	39,664
	Net income during the period	1,663			1,004			3,438			2,132
	Treasury stock purchased	(1,200		)	(292		)	(2,191		)	(384		)
	Share-based compensation	79			65			205			176
	Tax benefit - stock option exercises	55			—			55			—
	Exercise of stock options	292			220			456			301
	Unrealized gain or loss in investments	54			—			(33		)	—
	Balance at end of the period	$	68,598		$	41,889		$	68,598		$	41,889

Fair_Value_Measurements_Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2013
Fair Value Disclosures [Abstract]	'
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	'
	The following table sets forth the fair value of the financial instruments re-measured by the Company as of September 30, 2013 and December 31, 2012:
			Level 1		Level 2		Level 3		Total
	(In thousands)
	30-Sep-13
	Corporate bonds and notes		$	—	$	18,692	$	—	$	18,692
	Municipal bonds		—		6,684		—		6,684
		Total	$	—	$	25,376	$	—	$	25,376
			Level 1		Level 2		Level 3		Total
	(In thousands)
	December 31, 2012
	Corporate bonds and notes		$	—	$	—	$	—	$	—
	Municipal bonds		—		—		—		—
		Total	$	—	$	—	$	—	$	—

Business_Description_Basis_of_3

Business Description, Basis of Presentation and Significant Accounting Policies - Earnings Per Share (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Numerator:	'	'	'	'
Net income	$1,663	$1,004	$3,438	$2,132
Basic weighted average shares outstanding	9,027,764	9,113,713	9,090,903	9,106,455
Dilutive common stock equivalents using treasury stock method	379,177	79,861	394,905	112,706
Diluted weighted average shares outstanding	9,406,941	9,193,574	9,485,808	9,219,161
Basic earnings per common share	$0.18	$0.11	$0.38	$0.23
Diluted earnings per common share	$0.18	$0.11	$0.36	$0.23
Weighted average options outstanding	1,143,283	1,215,747	1,131,575	1,195,599
Anti-dilutive options not included in the computations	167,845	799,203	157,197	799,203

Business_Description_Basis_of_4

Business Description, Basis of Presentation and Significant Accounting Policies Summary of Significant Accounting Policies - Warranties (Details) (USD $)	9 Months Ended	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012	Dec. 31, 2011
Accounting Policies [Abstract]	'	'	'
Product Warranty Accrual	$365	$385	$467
Warranty accruals/additions	354	443	'
Warranty Usage	($374)	($525)	'

Marketable_Securities_Details

Marketable Securities (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Schedule of Available-for-sale Securities [Line Items]	'	'
Available-for-sale Securities, Amortized Cost Basis	$25,409	$0
Available-for-sale Securities, Gross Unrealized Gains	47	0
Available-for-sale Securities, Gross Unrealized Losses	-80	0
Available-for-sale Securities, Fair Value Disclosure	25,376	0
Corporate Debt Securities [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Available-for-sale Securities, Amortized Cost Basis	18,712	0
Available-for-sale Securities, Gross Unrealized Gains	34	0
Available-for-sale Securities, Gross Unrealized Losses	-54	0
Available-for-sale Securities, Fair Value Disclosure	18,692	0
Municipal Bonds [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Available-for-sale Securities, Amortized Cost Basis	6,697	0
Available-for-sale Securities, Gross Unrealized Gains	13	0
Available-for-sale Securities, Gross Unrealized Losses	-26	0
Available-for-sale Securities, Fair Value Disclosure	$6,684	$0

Marketable_Securities_Availabl

Marketable Securities - Available-for-sale Securities (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Investments, Debt and Equity Securities [Abstract]	'	'
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Amortized Cost Basis	$2,022	'
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value	2,017	'
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Amortized Cost Basis	21,344	'
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Fair Value	21,327	'
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Amortized Cost Basis	2,043	'
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Fair Value	2,032	'
Available-for-sale Securities, Amortized Cost Basis	25,409	0
Available-for-sale Securities, Fair Value Disclosure	$25,376	$0

Intangible_Assets_Intangibles_

Intangible Assets - Intangibles (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Finite and Indefiite-Lived Intangible Assets [Line Items]	'	'	'	'	'
Total finite and indefinite-lived intangible assets, gross	$5,674	'	$5,674	'	$5,674
Accumulated amortization	-1,820	'	-1,820	'	-1,416
Intangibles, net	3,854	'	3,854	'	4,258
Amortization of Intangible Assets	142	147	404	379	'
In-process research and development	'	'	'	'	'
Finite and Indefiite-Lived Intangible Assets [Line Items]	'	'	'	'	'
Indefinite-lived Intangible Assets	0	'	0	'	159
Tradename	'	'	'	'	'
Finite and Indefiite-Lived Intangible Assets [Line Items]	'	'	'	'	'
Finite-lived intangible assets, useful life (in years)	'	'	'7 years	'	'
Finite-lived intangible assets, gross	435	'	435	'	435
Patents and technological know-how	'	'	'	'	'
Finite and Indefiite-Lived Intangible Assets [Line Items]	'	'	'	'	'
Finite-lived intangible assets, useful life (in years)	'	'	'10 years	'	'
Finite-lived intangible assets, gross	2,070	'	2,070	'	2,070
Proprietary software	'	'	'	'	'
Finite and Indefiite-Lived Intangible Assets [Line Items]	'	'	'	'	'
Finite-lived intangible assets, gross	3,120	'	3,120	'	2,961
Other	'	'	'	'	'
Finite and Indefiite-Lived Intangible Assets [Line Items]	'	'	'	'	'
Finite-lived intangible assets, useful life (in years)	'	'	'5 years	'	'
Finite-lived intangible assets, gross	$49	'	$49	'	$49
Minimum	'	'	'	'	'
Finite and Indefiite-Lived Intangible Assets [Line Items]	'	'	'	'	'
Finite-lived intangible assets, useful life (in years)	'	'	'3 years	'	'
Maximum	'	'	'	'	'
Finite and Indefiite-Lived Intangible Assets [Line Items]	'	'	'	'	'
Finite-lived intangible assets, useful life (in years)	'	'	'15 years	'	'

Intangible_Assets_FiniteLived_

Intangible Assets - Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity (Details) (USD $)	Sep. 30, 2013
In Thousands, unless otherwise specified
Goodwill and Intangible Assets Disclosure [Abstract]	'
2013 (remainder)	$144
2014	559
2015	515
2016	478
2017	389
Thereafter	1,769
Finite-Lived Intangible Assets, Net	$3,854

Inventories_Details

Inventories (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Inventory Disclosure [Abstract]	'	'	'	'	'
Losses incurred on valuation of inventory and write-off of obsolete inventory	$256	$0	$524	$278	'
Current:	'	'	'	'	'
Raw materials	1,125	'	1,125	'	734
Finished goods	11,317	'	11,317	'	10,139
Inventories, current	12,442	'	12,442	'	10,873
Long-term:	'	'	'	'	'
Raw materials	527	'	527	'	891
Finished Goods	593	'	593	'	1,064
Inventory, Noncurrent	1,120	'	1,120	'	1,955
Inventory, finished goods, amount under consignment	$1,486	'	$1,486	'	$1,289

Sharebased_Compensation_Expens2

Share-based Compensation Expense (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Allocated Share-based Compensation Expense	$79	$65	$205	$176
unrecognized compensation cost related to non-vested stock options, net of forfeitures	894	'	894	'
Outstanding, weighted average remaining contractual term (in years)	'	'	'2 years 9 months 4 days	'
Options, grants in period, gross	70,000	92,000	127,500	187,000
Employee Stock Option [Member]	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]	'	'	'	'
Risk-free interest rate, average	2.30%	1.10%	1.80%	1.30%
Expected option life, average	'6 years 8 months 23 days	'7 years 3 months 18 days	'6 years 9 months 0 days	'7 years 2 months 12 days
Expected price volatility, average	49.50%	51.10%	49.80%	51.40%
Weighted average per share fair value	$4.28	$2.13	$4.38	$2.19
Cost of Goods, Total [Member]	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Allocated Share-based Compensation Expense	2	2	7	3
Selling and Marketing Expense [Member]	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Allocated Share-based Compensation Expense	21	15	55	45
Research and Development Expense [Member]	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Allocated Share-based Compensation Expense	14	9	37	26
General and Administrative Expense [Member]	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Allocated Share-based Compensation Expense	$42	$39	$106	$102

Shareholders_Equity_Details

Shareholders' Equity (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Increase (Decrease) in Stockholders' Equity [Roll Forward]	'	'	'	'
Balance at beginning of period	$67,655	$40,892	$66,668	$39,664
Net income	1,663	1,004	3,438	2,132
Treasury stock purchased	-1,200	-292	-2,191	-384
Stock-based compensation	79	65	205	176
Tax benefit - stock option exercises	55	0	55	0
Exercise of stock options	292	220	456	301
Balance at end of period	68,598	41,889	68,598	41,889
Unrealized Gain (Loss) on Investments	$54	$0	($33)	$0

Fair_Value_Measurements_Detail

Fair Value Measurements (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Schedule of Available-for-sale Securities [Line Items]	'	'
Available-for-sale Securities, Fair Value Disclosure	$25,376	$0
Fair Value, Measurements, Recurring [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Available-for-sale Securities, Fair Value Disclosure	25,376	0
Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Available-for-sale Securities, Fair Value Disclosure	18,692	0
Fair Value, Measurements, Recurring [Member] | Municipal Bonds [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Available-for-sale Securities, Fair Value Disclosure	6,684	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Available-for-sale Securities, Fair Value Disclosure	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Corporate Debt Securities [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Available-for-sale Securities, Fair Value Disclosure	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Municipal Bonds [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Available-for-sale Securities, Fair Value Disclosure	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Available-for-sale Securities, Fair Value Disclosure	25,376	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Available-for-sale Securities, Fair Value Disclosure	18,692	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Municipal Bonds [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Available-for-sale Securities, Fair Value Disclosure	6,684	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Available-for-sale Securities, Fair Value Disclosure	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Corporate Debt Securities [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Available-for-sale Securities, Fair Value Disclosure	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Municipal Bonds [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Available-for-sale Securities, Fair Value Disclosure	$0	$0

Income_Taxes_Income_Tax_Rates_

Income Taxes - Income Tax Rates (Details) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013
Income Tax Disclosure [Abstract]	'
Effective tax rate, forecasted	32.90%
Effective Income Tax Rate, Continuing Operations, Forecasted Increase (Decrease) in Rate	-4.50%
Effective Income Tax Rate, Continuing Operations	37.40%
Effective tax rate, including loss jurisdictions	37.80%
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	$417
Effective Tax Rate, After Discreet Benefits	31.00%