ClearOne (CLRO) 10-Q 14 May 14 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2014	9-May-14
Document and Entity Information	'	'
Entity Registrant Name	'CLEARONE INC	'
Document Type	'10-Q	'
Document Period End Date	31-Mar-14	'
Amendment Flag	'false	'
Entity Central Index Key	'0000840715	'
Current Fiscal Year End Date	'--12-31	'
Entity Common Stock, Shares Outstanding	'	9,260,635
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	'2014	'
Document Fiscal Period Focus	'Q1	'

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Current assets:	'	'
Cash and cash equivalents	$7,649	$17,192
Marketable securities	4,734	3,200
Receivables, net of allowance for doubtful accounts of $102 and $129, respectively	8,849	9,378
Inventories	12,641	12,278
Deferred income taxes	3,325	3,325
Prepaid expenses and other assets	7,050	2,693
Total current assets	44,248	48,066
Long-term marketable securities	21,645	22,326
Long-term inventories, net	575	551
Property and equipment, net	2,209	1,825
Intangibles, net	6,816	3,710
Goodwill	9,872	3,472
Deferred income taxes	980	1,024
Other assets	91	87
Total assets	86,436	81,061
Current liabilities:	'	'
Accounts payable	3,324	2,730
Accrued liabilities	2,627	1,761
Deferred product revenue	4,107	4,158
Total current liabilities	10,058	8,649
Deferred rent	246	286
Other long-term liabilities	2,363	1,791
Total liabilities	12,667	10,726
Shareholders' equity:	'	'
Common stock, par value $0.001, 50,000,000 shares authorized, 9,309,529 and 8,986,080 shares issued and outstanding	9	9
Additional paid-in capital	44,182	41,311
Accumulated other comprehensive income	96	23
Retained earnings	29,482	28,992
Total shareholders' equity	73,769	70,335
Total liabilities and shareholders' equity	86,436	81,061
Inventory [Member]	'	'
Current assets:	'	'
Inventories	11,063	10,758
Distributor Channel Inventory [Member]	'	'
Current assets:	'	'
Inventories	$1,578	$1,520

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parentheticals) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, except Share data, unless otherwise specified
Statement of Financial Position [Abstract]	'	'
Allowance for doubtful accounts	$102	$129
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)	9,309,529	8,986,080
Common stock, shares outstanding (in shares)	9,309,529	8,986,080

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Income Statement [Abstract]	'	'
Revenue	$12,708	$11,293
Cost of goods sold	5,006	4,294
Gross profit	7,702	6,999
Operating expenses:	'	'
Sales and marketing	2,736	2,267
Research and product development	2,241	1,866
General and administrative	1,964	1,797
Total operating expenses	6,941	5,930
Operating income	761	1,069
Other income (expense), net	81	-14
Income before income taxes	842	1,055
Provision for income taxes	352	324
Net income	490	731
Basic earnings per common share	$0.05	$0.08
Diluted earnings per common share	$0.05	$0.08
Basic weighted average shares outstanding	9,082,546	9,152,859
Diluted weighted average shares outstanding	9,558,941	9,394,181
Other comprehensive income:	'	'
Unrealized gain (loss) on available-for-sale securities, net of tax	96	0
Comprehensive income	$586	$731

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Cash flows from operating activities:	'	'
Net income	$490	$731
Adjustments to reconcile net income to net cash provided by (used in) operations:	'	'
Depreciation and amortization expense	319	323
Amortization of deferred rent	-21	-15
Stock-based compensation expense	84	59
Provision for (recoveries of) doubtful accounts, net	-27	27
Inventory valuation reserve adjustments	416	-34
Loss on disposal of assets	2	0
Tax benefit from exercise of stock options	-87	0
Changes in operating assets and liabilities:	'	'
Receivables	853	434
Inventories	40	-555
Deferred income taxes	44	0
Prepaid expenses and other assets	886	-138
Accounts payable	178	1,410
Accrued liabilities	210	-144
Income taxes payable	235	-15,066
Deferred product revenue	-51	599
Net cash provided by (used in) operating activities	3,571	-12,369
Cash flows from investing activities:	'	'
Payment towards business acquisitions	-13,048	0
Purchase of property and equipment	-249	-62
Purchase of Patents	-90	0
Purchases of marketable securities	-780	0
Net cash (used in) investing activities	-14,167	-62
Cash flows from financing activities:	'	'
Proceeds from the exercise of stock options	1,021	76
Tax benefits from stock options	87	0
Payments of Stock Issuance Costs	-55	0
Treasury stock purchased	0	-574
Net cash provided by (used in) financing activities	1,053	-498
Net (decrease) in cash and cash equivalents	-9,543	-12,929
Cash and cash equivalents at the beginning of the period	17,192	55,509
Cash and cash equivalents at the end of the period	7,649	42,580
Supplemental disclosure of cash flow information:	'	'
Cash paid for income taxes	29	15,346
Non-cash investing and financing activities:	'	'
Business Combination, Consideration Transferred	10,381	'
Common Stock [Member]	'	'
Non-cash investing and financing activities:	'	'
Business Combination, Consideration Transferred	$1,679	$0

Business_Description_Basis_of_

Business Description, Basis of Presentation and Significant Accounting Policies Business Description, Basis of Presentation and Significant Accounting Policies	3 Months Ended
	Mar. 31, 2014
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. and its subsidiaries (collectively, “ClearOne” or the “Company”) are 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 months ended March 31, 2014 and 2013, 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 our financial position as of March 31, 2014 and December 31, 2013, the results of operations for the three months ended March 31, 2014 and 2013, and the statements of cash flows for the three months ended March 31, 2014 and 2013. The results of operations for the three months ended March 31, 2014 and 2013 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 our Annual Report on Form 10-K for the year ended December 31, 2013 filed with the SEC.
	Significant Accounting Policies:
	The significant accounting policies were described in Note 1 to the audited consolidated financial statements included in the Company’s annual report on Form 10-K for the year ended December 31, 2013. There have been no changes to these policies during the three months ended March 31, 2014 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:
		31-Mar-14			31-Dec-13
	Balance at the beginning of year	$	338		$	385
	Warranty accruals/additions	94			433
	Warranty usage	(106		)	(480		)
	Balance at end of period	$	326		$	338
	Earnings Per Share – The following table sets forth the computation of basic and diluted earnings per common share:
		Three months ended March 31,
		2014			2013
	Numerator:
	Net income	$	490		$	731
	Denominator:
	Basic weighted average shares outstanding	9,082,546			9,152,859
	Dilutive common stock equivalents using treasury stock method	476,395			241,322
	Diluted weighted average shares outstanding	9,558,941			9,394,181
	Basic earnings per common share	$	0.05		$	0.08
	Diluted earnings per common share	$	0.05		$	0.08
	Weighted average options outstanding	1,044,208			1,128,483
	Anti-dilutive options not included in the computations	116,000			208,957

Business_Combination_Business_

Business Combination Business Combination	3 Months Ended
	Mar. 31, 2014
Business Combinations [Abstract]	'
Business Combination	'
	Business Combination
	On March 7, 2014, the Company completed the acquisition of Sabine, Inc. ("Sabine") through a stock purchase agreement ("SPA"). Sabine manufactures, designs, and sells Sacom professional wireless microphone systems for live and installed audio. It also makes FBX Feedback Exterminator for reliable automatic feedback control. With the addition of Sabine, ClearOne will have reliable and exclusive access to the wireless microphones that are a critical component of ClearOne’s complete microphone portfolio.
	Pursuant to the SPA, the Company (i) paid initial consideration of $8,129 in cash, which is subject to a final working capital adjustment, (ii) accrued for possible additional earn-out payments over the next three years, estimated to be $573, and (iii) issued 150,000 shares of restricted common stock of the Company, valued at $1,679 (determined on the basis of the closing market price of the Company's stock on the acquisition date). The purchase price was paid out of cash on hand. The SPA contains representations, warranties and indemnifications customary for a transaction of this type.
	The estimated fair values of assets acquired and liabilities assumed are provisional and are based on the information that was available as of the acquisition date to estimate the fair value of assets acquired and liabilities assumed. The Company believes that such information provides a reasonable basis for estimating the fair values of assets acquired and liabilities assumed, but the Company is waiting for additional information necessary to finalize those fair values. The measurement period for purchase price allocation ends as soon as information on the facts and circumstances becomes available, but will not exceed twelve months from the date of acquisition. Adjustments in the purchase price allocation may require a recasting of the amounts allocated to intangible assets and possible allocation to goodwill, retroactive to the period in which the acquisition occurred. Therefore, the provisional measurements of fair value reflected are subject to change and such changes could be significant.
	The following table summarizes the consideration paid for the acquisition:
		Consideration
	Cash	$	8,129
	Common stock	1,679
	Contingent consideration	573
	Total	$	10,381
	The fair value of identified assets and liabilities acquired was as follows:
		Fair value
	Cash	$	125
	Accounts receivable	298
	Inventories	844
	Prepaid and other	116
	Intangibles	3,180
	Property, plant and equipment	292
	Goodwill	6,399
	Trade accounts payable	(416		)
	Accrued liabilities	(402		)
	Stock registration costs	(55		)
	Total	$	10,381
	The fair value of accounts receivable acquired is $298 which is net of an allowance for doubtful accounts of $2.
	The goodwill of $6,399 related to the acquisition of of Sabine is composed of expected synergies in utilizing Sabine technology in ClearOne product offerings, reduction in future combined research and development expenses, and intangible assets including acquired workforce that do not qualify for separate recognition. The goodwill balance of $6,399 related to the acquisition of Sabine is deductible for tax purposes.
	The Company incurred $341 towards acquisition related expenses, all of which are categorized under General and administrative expenses in the Consolidated Statement of Operations for the period ended March 31, 2014.
	Supplemental Pro Forma Information:
	1) Revenue and net loss from the Sabine business from March 8, 2014 to March 31, 2014 was $84 and $163 respectively.
	2) Revenue and earnings of the combined entity as though the business combination occurred as of January 1, 2013 were as follows:
		Three months ended March 31,
		2014			2013
	Revenue	$	12,977		$	12,163
	Earnings	249			750
	Basic and diluted earnings per common share	$	0.03		$	0.08
	3) There were no material, nonrecurring pro forma adjustments directly attributable to the acquisition included in this Supplemental Pro Forma Information.
	See Note 10. Subsequent Events for information regarding the Spontania acquisition.

Marketable_Securities

Marketable Securities	3 Months Ended
	Mar. 31, 2014
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 March 31, 2014 and December 31, 2013 were as follows:
				Amortized			Gross		Gross			Estimated
				cost			unrealized		unrealized			fair value
							holding		holding
							gains		losses
	31-Mar-14
		Available-for-sale securities:
			Corporate bonds and notes	$	19,605		$	149	$	(17	)	$	19,737
			Municipal bonds	6,620			29		(7		)	6,642
		Total available-for-sale securities		$	26,225		$	178	$	(24	)	$	26,379
				Amortized			Gross		Gross			Estimated
				cost			unrealized		unrealized			fair value
							holding		holding
							gains		losses
	31-Dec-13
		Available-for-sale securities:
			Corporate bonds and notes	$	18,832		$	68	$	(43	)	$	18,857
			Municipal bonds	6,658			22		(11		)	6,669
		Total available-for-sale securities		$	25,490		$	90	$	(54	)	$	25,526
	Maturities of marketable securities classified as available-for-sale securities were as follows at March 31, 2014:
			Amortized			Estimated
			cost			fair value
	31-Mar-14
		Due within one year	$	4,724		$	4,734
		Due after one year through five years	19,927			20,036
		Due after five years through ten years	1,574			1,609
		Total available-for-sale securities	$	26,225		$	26,379

Intangible_Assets

Intangible Assets	3 Months Ended
	Mar. 31, 2014
Business Combinations [Abstract]	'
Intangible Assets	'
	Intangible Assets
	Intangible assets as of March 31, 2014 and December 31, 2013 consisted of the following:
		Estimated useful lives		31-Mar-14				31-Dec-13
	Tradename	7 years		$	435			$	435
	Patents and technological know-how	10 years		5,310				2,070
	Proprietary software	3 to 15 years		2,961				2,961
	Other	5 years		238				208
				8,944				5,674
	Accumulated amortization			(2,128		)		(1,964		)
				$	6,816			$	3,710
	The amortization of intangible assets for the three months ended March 31, 2014 and March 31, 2013 was as follows:
		Three months ended March 31,
		2014				2013
	Amortization of intangible assets	$	164			$	143
	The estimated future amortization expense of intangible assets is as follows:
	Years ending December 31,
	2014 (remainder)	$	665
	2015	847
	2016	810
	2017	721
	2018	700
	Thereafter	3,073
		$	6,816

Inventories

Inventories	3 Months Ended
	Mar. 31, 2014
Inventory Disclosure [Abstract]	'
Inventories	'
	Inventories
	Inventories, net of reserves, as of March 31, 2014 and December 31, 2013 consisted of the following:
		31-Mar-14		31-Dec-13
	Current:
	Raw materials	$	1,959	$	1,362
	Finished goods	10,682		10,916
		$	12,641	$	12,278
	Long-term:
	Raw materials	$	256	$	227
	Finished goods	319		324
		$	575	$	551
	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 $1,578 and $1,520 as of March 31, 2014 and December 31, 2013, 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 months ended March 31, 2014 and 2013, respectively.
		Three months ended March 31,
		2014		2013
	Net loss (gain) on valuation of inventory and write-off of obsolete inventory	$	416	$	(34	)

ShareBased_Payments

Share-Based Payments	3 Months Ended
	Mar. 31, 2014
Shareholders' Equity and Share-based Payments [Abstract]	'
Share-Based Compensation	'
	Share-based Compensation
	Share-based compensation expense has been recorded as follows:
		Three months ended March 31,
		2014		2013
	Cost of goods sold	$	2	$	2
	Sales and marketing	20		15
	Research and product development	11		11
	General and administrative	51		31
		$	84	$	59
	As of March 31, 2014, the total remaining unrecognized compensation cost related to non-vested stock options, net of forfeitures, was approximately $641, which will be recognized over a weighted average period of 2.31 years.

Shareholders_Equity

Shareholders' Equity	3 Months Ended
	Mar. 31, 2014
Stockholders' Equity Note [Abstract]	'
Shareholders' Equity	'
	Shareholders’ Equity
	The following table summarizes the change in shareholders’ equity during the three months ended March 31, 2014 and 2013, respectively:
		Three months ended March 31,
		2014		2013
	Balance at the beginning of the period	$	70,335	$	66,668
	Net income during the period	490		731
	Treasury stock purchased	—		(574		)
	Share-based compensation	84		59
	Tax benefit - stock option exercise	87		—
	Exercise of stock options	1,021		76
	Stock issued for acquisitions	1,679		—
	Unrealized gain or loss on investments, net of tax	73		—
	Balance at end of the period	$	73,769	$	66,960

Fair_Value_Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2014
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.
	Level 3 - Unobservable inputs.
	The substantial majority of the Company’s financial instruments are valued using quoted prices in active markets or based on other observable inputs. The following table sets forth the fair value of the financial instruments re-measured by the Company as of March 31, 2014 and December 31, 2013:
			Level 1		Level 2		Level 3		Total
	31-Mar-14
	Corporate bonds and notes		$	—	$	19,737	$	—	$	19,737
	Municipal bonds		—		6,642		—		6,642
		Total	$	—	$	26,379	$	—	$	26,379
			Level 1		Level 2		Level 3		Total
	31-Dec-13
	Corporate bonds and notes		$	—	$	18,857	$	—	$	18,857
	Municipal bonds		—		6,669		—		6,669
		Total	$	—	$	25,526	$	—	$	25,526

Income_Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2014
Income Tax Disclosure [Abstract]	'
Income Taxes	'
	Income Taxes
	The Company's forecasted effective tax rate at March 31, 2014 is 35.0%, a 1.7% increase from the 33.3% effective tax rate recorded at December 31, 2013. The forecasted effective tax rate of 35.0% 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 43.2%. 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 March 31, 2014.
	After discrete benefit of $82, the effective tax rate for the quarter ended March 31, 2014 is 41.9%. The discrete benefit is primarily attributable to tax benefits of share-based compensation.

Subsequent_Events

Subsequent Events	3 Months Ended
	Mar. 31, 2014
Subsequent Events [Abstract]	'
Subsequent Events	'
	Subsequent Events
	As announced December 20, 2013 ClearOne, Inc. entered into an agreement to acquire the Spontania business of Spain-based Dialcom Networks, S.L., which was a software-based video collaboration product line. The Spontania purchase closed on April 1, 2014. The aggregate purchase price under the terms of the transaction was approximately €3.66 million in cash (approximately US $5.0 million), after certain closing adjustments. ClearOne did not assume any debt or cash. The cash purchase price was paid out of cash on hand.

Summary_of_Significant_Account

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2014
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.

Summary_of_Significant_Account1

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2014
Accounting Policies [Abstract]	'
Schedule of Warranty Accrual	'
	The details of changes in the Company’s warranty accrual are as follows:
		31-Mar-14			31-Dec-13
	Balance at the beginning of year	$	338		$	385
	Warranty accruals/additions	94			433
	Warranty usage	(106		)	(480		)
	Balance at end of period	$	326		$	338
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 March 31,
		2014			2013
	Numerator:
	Net income	$	490		$	731
	Denominator:
	Basic weighted average shares outstanding	9,082,546			9,152,859
	Dilutive common stock equivalents using treasury stock method	476,395			241,322
	Diluted weighted average shares outstanding	9,558,941			9,394,181
	Basic earnings per common share	$	0.05		$	0.08
	Diluted earnings per common share	$	0.05		$	0.08
	Weighted average options outstanding	1,044,208			1,128,483
	Anti-dilutive options not included in the computations	116,000			208,957

Business_Combination_Tables

Business Combination (Tables)	3 Months Ended
	Mar. 31, 2014
Business Combinations [Abstract]	'
Schedule of Consideration Paid for the Acquisition	'
	The following table summarizes the consideration paid for the acquisition:
		Consideration
	Cash	$	8,129
	Common stock	1,679
	Contingent consideration	573
	Total	$	10,381
Schedule of Fair Value of Identified Assets and Liabilities Acquired	'
	The fair value of identified assets and liabilities acquired was as follows:
		Fair value
	Cash	$	125
	Accounts receivable	298
	Inventories	844
	Prepaid and other	116
	Intangibles	3,180
	Property, plant and equipment	292
	Goodwill	6,399
	Trade accounts payable	(416		)
	Accrued liabilities	(402		)
	Stock registration costs	(55		)
	Total	$	10,381
Schedule of Pro Forma Revenue and Earnings	'
	Revenue and earnings of the combined entity as though the business combination occurred as of January 1, 2013 were as follows:
		Three months ended March 31,
		2014			2013
	Revenue	$	12,977		$	12,163
	Earnings	249			750
	Basic and diluted earnings per common share	$	0.03		$	0.08

Marketable_Securities_Tables

Marketable Securities (Tables)	3 Months Ended
	Mar. 31, 2014
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 March 31, 2014 and December 31, 2013 were as follows:
				Amortized			Gross		Gross			Estimated
				cost			unrealized		unrealized			fair value
							holding		holding
							gains		losses
	31-Mar-14
		Available-for-sale securities:
			Corporate bonds and notes	$	19,605		$	149	$	(17	)	$	19,737
			Municipal bonds	6,620			29		(7		)	6,642
		Total available-for-sale securities		$	26,225		$	178	$	(24	)	$	26,379
				Amortized			Gross		Gross			Estimated
				cost			unrealized		unrealized			fair value
							holding		holding
							gains		losses
	31-Dec-13
		Available-for-sale securities:
			Corporate bonds and notes	$	18,832		$	68	$	(43	)	$	18,857
			Municipal bonds	6,658			22		(11		)	6,669
		Total available-for-sale securities		$	25,490		$	90	$	(54	)	$	25,526
Available-for-sale Securities	'
	Maturities of marketable securities classified as available-for-sale securities were as follows at March 31, 2014:
			Amortized			Estimated
			cost			fair value
	31-Mar-14
		Due within one year	$	4,724		$	4,734
		Due after one year through five years	19,927			20,036
		Due after five years through ten years	1,574			1,609
		Total available-for-sale securities	$	26,225		$	26,379

Intangible_Assets_Intangible_A

Intangible Assets Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]	'
Schedule of Intangible Assets	'
	Intangible assets as of March 31, 2014 and December 31, 2013 consisted of the following:
		Estimated useful lives		31-Mar-14			31-Dec-13
	Tradename	7 years		$	435		$	435
	Patents and technological know-how	10 years		5,310			2,070
	Proprietary software	3 to 15 years		2,961			2,961
	Other	5 years		238			208
				8,944			5,674
	Accumulated amortization			(2,128		)	(1,964		)
				$	6,816		$	3,710
Schedule of Estimated Future Amortization Expense of Intangible Assets	'
	The estimated future amortization expense of intangible assets is as follows:
	Years ending December 31,
	2014 (remainder)	$	665
	2015	847
	2016	810
	2017	721
	2018	700
	Thereafter	3,073
		$	6,816

Inventories_Tables

Inventories (Tables)	3 Months Ended
	Mar. 31, 2014
Inventory Disclosure [Abstract]	'
Schedule of inventory, net of reserves	'
	Inventories, net of reserves, as of March 31, 2014 and December 31, 2013 consisted of the following:
		31-Mar-14		31-Dec-13
	Current:
	Raw materials	$	1,959	$	1,362
	Finished goods	10,682		10,916
		$	12,641	$	12,278
	Long-term:
	Raw materials	$	256	$	227
	Finished goods	319		324
		$	575	$	551
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 months ended March 31, 2014 and 2013, respectively.
		Three months ended March 31,
		2014		2013
	Net loss (gain) on valuation of inventory and write-off of obsolete inventory	$	416	$	(34	)

ShareBased_Payments_Tables

Share-Based Payments (Tables)	3 Months Ended
	Mar. 31, 2014
Shareholders' Equity and Share-based Payments [Abstract]	'
Schedule of share-based compensation expense	'
	Share-based compensation expense has been recorded as follows:
		Three months ended March 31,
		2014		2013
	Cost of goods sold	$	2	$	2
	Sales and marketing	20		15
	Research and product development	11		11
	General and administrative	51		31
		$	84	$	59

Shareholders_Equity_Tables

Shareholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2014
Stockholders' Equity Note [Abstract]	'
Schedule of Shareholders' Equity	'
	The following table summarizes the change in shareholders’ equity during the three months ended March 31, 2014 and 2013, respectively:
		Three months ended March 31,
		2014		2013
	Balance at the beginning of the period	$	70,335	$	66,668
	Net income during the period	490		731
	Treasury stock purchased	—		(574		)
	Share-based compensation	84		59
	Tax benefit - stock option exercise	87		—
	Exercise of stock options	1,021		76
	Stock issued for acquisitions	1,679		—
	Unrealized gain or loss on investments, net of tax	73		—
	Balance at end of the period	$	73,769	$	66,960

Fair_Value_Measurements_Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2014
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 March 31, 2014 and December 31, 2013:
			Level 1		Level 2		Level 3		Total
	31-Mar-14
	Corporate bonds and notes		$	—	$	19,737	$	—	$	19,737
	Municipal bonds		—		6,642		—		6,642
		Total	$	—	$	26,379	$	—	$	26,379
			Level 1		Level 2		Level 3		Total
	31-Dec-13
	Corporate bonds and notes		$	—	$	18,857	$	—	$	18,857
	Municipal bonds		—		6,669		—		6,669
		Total	$	—	$	25,526	$	—	$	25,526

Business_Description_Basis_of_1

Business Description, Basis of Presentation and Significant Accounting Policies Summary of Significant Accounting Policies - Warranties (Details) (USD $)	3 Months Ended	12 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Movement in Standard Product Warranty Accrual [Roll Forward]	'	'
Balance at the beginning of year	$338	$385
Warranty accruals/additions	94	433
Warranty usage	-106	-480
Balance at end of period	$326	$338

Summary_of_Significant_Account2

Summary of Significant Accounting Policies - Earnings Per Share (Details) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Numerator:	'	'
Net income	$490	$731
Denominator:	'	'
Basic weighted average shares outstanding	9,082,546	9,152,859
Dilutive common stock equivalents using treasury stock method	476,395	241,322
Diluted weighted average shares outstanding	9,558,941	9,394,181
Basic earnings per common share	$0.05	$0.08
Diluted earnings per common share	$0.05	$0.08
Weighted average options outstanding	1,044,208	1,128,483
Anti-dilutive options not included in the computations	116,000	208,957

Business_Combination_Business_1

Business Combination Business Combination Consideration Transferred (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014
Noncash or Part Noncash Acquisitions [Line Items]	'
Business Combination, Consideration Transferred	$10,381
Sabine, Inc. [Member]	'
Noncash or Part Noncash Acquisitions [Line Items]	'
Business Combination, Consideration Transferred	8,129
Sabine, Inc. [Member] | Earn-out Payment [Member]	'
Noncash or Part Noncash Acquisitions [Line Items]	'
Business Combination, Consideration Transferred	$573

Business_Combination_Schedule_

Business Combination Schedule of Fair Value of Identified Assets and Liabilities Acquired (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013	Mar. 07, 2014
In Thousands, unless otherwise specified			Sabine, Inc. [Member]
Business Acquisition [Line Items]	'	'	'
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents	'	'	$125
Accounts receivable	'	'	298
Inventories	'	'	844
Prepaid and other	'	'	116
Intangibles	'	'	3,180
Property, plant and equipment	'	'	292
Goodwill	9,872	3,472	6,399
Trade accounts payable	'	'	-416
Accrued liabilities	'	'	-402
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other	'	'	-55
Total Assets, Goodwill, and Liabilities	'	'	$10,381

Business_Combination_Schedule_1

Business Combination Schedule of Pro Forma Revenue and Earnings (Details) (Sabine, Inc. [Member], USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Sabine, Inc. [Member]	'	'
Business Acquisition [Line Items]	'	'
Business Acquisition, Pro Forma Revenue	$12,977	$12,163
Business Acquisition, Pro Forma Net Income (Loss)	$249	$750
Business Acquisition, Pro Forma Earnings Per Share, Basic and Diluted	$0.03	$0.08

Business_Combination_Narrative

Business Combination Narrative (Details) (USD $)	3 Months Ended			3 Months Ended		3 Months Ended	0 Months Ended	1 Months Ended	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013	Mar. 31, 2014	Mar. 07, 2014	Mar. 31, 2014	Mar. 07, 2014	Mar. 31, 2014	Mar. 31, 2014
				Sabine, Inc. [Member]	Sabine, Inc. [Member]	Earn-out Payment [Member]	Restricted Stock [Member]	Sabine, Inc. [Member]	General and Administrative Expense [Member]
						Sabine, Inc. [Member]	Sabine, Inc. [Member]
Business Acquisition [Line Items]	'	'	'	'	'	'	'	'	'
Accounts receivable	'	'	'	'	$298	'	'	'	'
Allowance for doubtful accounts	'	'	'	'	2	'	'	'	'
Business Combination, Consideration Transferred	'	'	'	8,129	'	'	'	'	'
Business Combination, Consideration Transferred	10,381	'	'	'	'	573	'	'	'
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares	'	'	'	'	'	'	150,000	'	'
Common stock issued	'	'	'	'	'	'	1,679	'	'
Goodwill	9,872	'	3,472	'	6,399	'	'	'	'
Business Combination, Acquisition Related Costs	'	'	'	'	'	'	'	'	341
Revenues	'	'	'	'	'	'	'	84	'
Net income	$490	$731	'	'	'	'	'	($163)	'

Marketable_Securities_Details

Marketable Securities (Details) (USD $)	3 Months Ended	12 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Schedule of Available-for-sale Securities [Line Items]	'	'
Amortized cost	$26,225	$25,490
Gross unrealized holding gains	178	90
Gross unrealized holding losses	-24	-54
Estimated fair value	26,379	25,526
Corporate Debt Securities [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Amortized cost	19,605	18,832
Gross unrealized holding gains	149	68
Gross unrealized holding losses	-17	-43
Estimated fair value	19,737	18,857
Municipal Bonds [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Amortized cost	6,620	6,658
Gross unrealized holding gains	29	22
Gross unrealized holding losses	-7	-11
Estimated fair value	$6,642	$6,669

Marketable_Securities_Availabl

Marketable Securities - Available-for-sale Securities (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Investments, Debt and Equity Securities [Abstract]	'	'
Due within one year, Amortized Cost	$4,724	'
Due within one year, Estimated fair value	4,734	'
Due after one year through five years, Amortized Cost	19,927	'
Due after one year through five years, Estimated fair value	20,036	'
Due after five years through ten years, Amortized Cost	1,574	'
Due after five years through ten years, Estimated fair value	1,609	'
Total available-for-sale securities, Amortized Cost	26,225	25,490
Total available-for-sale securities, Estimated fair value	$26,379	$25,526

Business_Combination_Goodwill_

Business Combination, Goodwill and Intangibles - Intangibles (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract]	'	'	'
Total finite and indefinite-lived intangible assets, gross	$8,944	'	$5,674
Accumulated amortization	-2,128	'	-1,964
Intangible assets, net (excluding goodwill)	6,816	'	3,710
Amortization of Intangible Assets	164	143	'
Tradename	'	'	'
Goodwill and Intangible Assets Disclosure [Abstract]	'	'	'
Finite-lived intangible assets, useful life (in years)	'7 years	'	'
Finite-lived intangible assets, gross	435	'	435
Patents and technological know-how	'	'	'
Goodwill and Intangible Assets Disclosure [Abstract]	'	'	'
Finite-lived intangible assets, useful life (in years)	'10 years	'	'
Finite-lived intangible assets, gross	5,310	'	2,070
Proprietary software	'	'	'
Goodwill and Intangible Assets Disclosure [Abstract]	'	'	'
Finite-lived intangible assets, gross	2,961	'	2,961
Other	'	'	'
Goodwill and Intangible Assets Disclosure [Abstract]	'	'	'
Finite-lived intangible assets, useful life (in years)	'5 years	'	'
Finite-lived intangible assets, gross	$238	'	$208
Minimum	'	'	'
Goodwill and Intangible Assets Disclosure [Abstract]	'	'	'
Finite-lived intangible assets, useful life (in years)	'3 years	'	'
Maximum	'	'	'
Goodwill and Intangible Assets Disclosure [Abstract]	'	'	'
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 [Abstract] (Details) (USD $)	Mar. 31, 2014
In Thousands, unless otherwise specified
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]	'
2014 (remainder)	$665
2015	847
2016	810
2017	721
2018	700
Thereafter	3,073
Finite-Lived Intangible Assets, Net	$6,816

Intangible_Assets_Narrative_De

Intangible Assets Narrative (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013	Mar. 07, 2014
In Thousands, unless otherwise specified			Sabine, Inc. [Member]
Goodwill [Line Items]	'	'	'
Goodwill	$9,872	$3,472	$6,399

Inventories_Details

Inventories (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Inventory [Line Items]	'	'	'
Losses incurred on valuation of inventory and write-off of obsolete inventory	$416	($34)	'
Current:	'	'	'
Raw materials	1,959	'	1,362
Finished goods	10,682	'	10,916
Inventories, current	12,641	'	12,278
Long-term:	'	'	'
Raw materials	256	'	227
Finished Goods	319	'	324
Inventory, Noncurrent	575	'	551
Distributor Channel Inventory [Member]	'	'	'
Current:	'	'	'
Inventories, current	$1,578	'	$1,520

ShareBased_Payments_Details

Share-Based Payments (Details) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Allocated Share-based Compensation Expense	$84,000	$59,000
Employee Stock Option [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
unrecognized compensation cost related to non-vested stock options, net of forfeitures	641	'
Outstanding, weighted average remaining contractual term (in years)	'2 years 3 months 22 days	'
Cost of Goods, Total [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Allocated Share-based Compensation Expense	2,000	2,000
Selling and Marketing Expense [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Allocated Share-based Compensation Expense	20,000	15,000
Research and Development Expense [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Allocated Share-based Compensation Expense	11,000	11,000
General and Administrative Expense [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Allocated Share-based Compensation Expense	$51,000	$31,000

Shareholders_Equity_Details

Shareholders' Equity (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Increase (Decrease) in Stockholders' Equity [Roll Forward]	'	'
Balance at the beginning of the period	$70,335	$66,668
Net income	490	731
Treasury stock purchased	0	-574
Share-based compensation	84	59
Excess Tax Benefit from Share-based Compensation, Financing Activities	87	0
Exercise of stock options	1,021	76
Stock issued for acquisitions	1,679	0
Unrealized gain or loss on investments, net of tax	73	0
Balance at end of the period	$73,769	$66,960

Fair_Value_Measurements_Detail

Fair Value Measurements (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Schedule of Available-for-sale Securities [Line Items]	'	'
Estimated fair value	$26,379	$25,526
Fair Value, Measurements, Recurring [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Estimated fair value	26,379	25,526
Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Estimated fair value	19,737	18,857
Fair Value, Measurements, Recurring [Member] | Municipal Bonds [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Estimated fair value	6,642	6,669
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Estimated fair value	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]	'	'
Estimated fair value	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Municipal Bonds [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Estimated fair value	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Estimated fair value	26,379	25,526
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Estimated fair value	19,737	18,857
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Municipal Bonds [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Estimated fair value	6,642	6,669
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Estimated fair value	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]	'	'
Estimated fair value	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Municipal Bonds [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Estimated fair value	$0	$0

Income_Taxes_Income_Tax_Rates_

Income Taxes Income Tax Rates (Details) (USD $)	3 Months Ended	12 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Income Tax Rate Disclosures [Abstract]	'	'
Effective tax rate, forecasted	35.00%	'
Effective Income Tax Rate, Continuing Operations, Forecasted Increase (Decrease) in Rate	1.70%	'
Effective Income Tax Rate, Continuing Operations	'	33.30%
Effective tax rate, including loss jurisdictions	43.20%	'
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	$82	'
Effective Tax Rate, After Discreet Benefits	41.90%	'

Subsequent_Events_Subsequent_E

Subsequent Events Subsequent Events (Details)	3 Months Ended	0 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Apr. 02, 2014	Apr. 02, 2014
	USD ($)	Spontania [Member]	Spontania [Member]
		Subsequent Event [Member]	Subsequent Event [Member]
		USD ($)	EUR (€)
Subsequent Event [Line Items]	'	'	'
Business Combination, Consideration Transferred	$10,381	$5,000	€ 3,660