Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 24, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'CLEARONE INC | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0000840715 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 9,143,090 |
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 | 'Q3 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $8,892 | $17,192 |
Marketable securities | 5,785 | 3,200 |
Receivables, net of allowance for doubtful accounts of $71 and $129, respectively | 9,658 | 9,378 |
Inventory, Net | 13,280 | 12,278 |
Deferred income taxes | 3,378 | 3,325 |
Prepaid expenses and other assets | 3,270 | 2,693 |
Total current assets | 44,263 | 48,066 |
Long-term marketable securities | 19,666 | 22,326 |
Long-term inventories, net | 992 | 551 |
Property and equipment, net | 2,106 | 1,825 |
Intangibles, net | 8,767 | 3,710 |
Goodwill | 12,596 | 3,472 |
Deferred income taxes | 1,303 | 1,024 |
Other assets | 114 | 87 |
Total assets | 89,807 | 81,061 |
Current liabilities: | ' | ' |
Accounts payable | 2,852 | 2,730 |
Accrued liabilities | 4,452 | 1,761 |
Deferred product revenue | 4,980 | 4,158 |
Total current liabilities | 12,284 | 8,649 |
Deferred rent | 256 | 286 |
Other long-term liabilities | 2,395 | 1,791 |
Total liabilities | 14,935 | 10,726 |
Shareholders' equity: | ' | ' |
Common stock, par value $0.001, 50,000,000 shares authorized, 9,163,177 and 8,986,080 shares issued and outstanding | 9 | 9 |
Additional paid-in capital | 44,645 | 41,311 |
Accumulated other comprehensive income | 83 | 23 |
Retained earnings | 30,135 | 28,992 |
Total shareholders' equity | 74,872 | 70,335 |
Total liabilities and shareholders' equity | 89,807 | 81,061 |
Inventories [Member] | ' | ' |
Current assets: | ' | ' |
Inventory, Net | 11,673 | 10,758 |
Distributor Channel Inventory [Member] | ' | ' |
Current assets: | ' | ' |
Inventory, Net | $1,607 | $1,520 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Allowance for doubtful accounts | $71 | $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) | 9,163,177 | 8,986,080 |
Common stock, shares outstanding (in shares) | 9,163,177 | 8,986,080 |
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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Revenue | $15,739 | $12,366 | $42,558 | $35,362 |
Cost of goods sold | 6,099 | 4,921 | 17,152 | 14,054 |
Gross profit | 9,640 | 7,445 | 25,406 | 21,308 |
Operating expenses: | ' | ' | ' | ' |
Sales and marketing | 2,791 | 2,220 | 8,504 | 6,575 |
Research and product development | 2,315 | 1,788 | 6,886 | 5,497 |
General and administrative | 1,487 | 1,405 | 5,079 | 4,639 |
Proceeds from litigation, net | 0 | -272 | 0 | -272 |
Total operating expenses | 6,593 | 5,141 | 20,469 | 16,439 |
Operating income | 3,047 | 2,304 | 4,937 | 4,869 |
Other income, net | 70 | 85 | 215 | 117 |
Income before income taxes | 3,117 | 2,389 | 5,152 | 4,986 |
Provision for income taxes | 1,471 | 726 | 2,082 | 1,548 |
Net income | 1,646 | 1,663 | 3,070 | 3,438 |
Basic earnings per common share (in dollars per share) | $0.18 | $0.18 | $0.33 | $0.38 |
Diluted earnings per common share (in dollars per share) | $0.17 | $0.18 | $0.32 | $0.36 |
Basic weighted average shares outstanding (in shares) | 9,198,730 | 9,027,764 | 9,182,875 | 9,090,903 |
Diluted weighted average shares outstanding (in shares) | 9,607,644 | 9,406,941 | 9,615,878 | 9,485,808 |
Unrealized gain (loss) on available-for-sale securities, net of tax | -78 | 55 | 60 | -33 |
Comprehensive income | $1,568 | $1,718 | $3,130 | $3,405 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net income during the period | $3,070 | $3,438 |
Adjustments to reconcile net income to net cash provided by (used in) operations: | ' | ' |
Depreciation and amortization expense | 1,255 | 979 |
Amortization of deferred rent | -69 | -77 |
Stock-based compensation expense | 266 | 205 |
Provision for doubtful accounts, net | 40 | 61 |
Inventory valuation reserve adjustments | 537 | 524 |
Tax benefit from the exercise of stock options | -92 | -76 |
Changes in operating assets and liabilities: | ' | ' |
Receivables | -65 | -115 |
Inventories | -1,136 | -1,258 |
Deferred income taxes | -333 | 0 |
Prepaid expenses and other assets | -396 | -262 |
Accounts payable | -298 | 1,180 |
Accrued liabilities | 828 | 143 |
Income taxes payable | 1,445 | -14,782 |
Deferred product revenue | 822 | 512 |
Other long-term liabilities | -62 | 0 |
Net cash provided by (used in) operating activities | 5,812 | -9,528 |
Cash flows from investing activities: | ' | ' |
Payment towards business acquisitions | -13,068 | 0 |
Purchase of property and equipment | -496 | -723 |
Purchase of patents | -90 | 0 |
Proceeds from Maturities, Prepayments and Calls of Available-for-sale Securities | 6,790 | 0 |
Purchase of marketable securities | -6,655 | -25,409 |
Net cash used in investing activities | -13,519 | -26,132 |
Cash flows from financing activities: | ' | ' |
Proceeds from the exercise of stock options | 1,297 | 456 |
Tax benefit from stock options | 92 | 76 |
Stock registration costs | -55 | 0 |
Treasury stock purchased | -1,927 | -2,191 |
Net cash used in financing activities | -593 | -1,659 |
Net decrease in cash and cash equivalents | -8,300 | -37,319 |
Cash and cash equivalents at the beginning of the period | 17,192 | 55,509 |
Cash and cash equivalents at the end of the period | 8,892 | 18,190 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid for income taxes | 1,695 | 16,987 |
Noncash or Part Noncash Acquisition, Fixed Assets Acquired | 0 | 150 |
Issuance of common stock in connection with acquisition of business | $1,679 | $0 |
Business_Description_Basis_of_
Business Description, Basis of Presentation and Significant Accounting Policies | 9 Months Ended | |||||||||||||||
Sep. 30, 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., 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, 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 the Company's financial position as of September 30, 2014 and December 31, 2013, the results of operations for the three and nine months ended September 30, 2014 and 2013, and the statements of cash flows for the nine months ended September 30, 2014 and 2013. The results of operations for the three and nine months ended September 30, 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 the Company's Annual Report on Form 10-K for the year ended December 31, 2013 filed with the SEC on March 20, 2014. | ||||||||||||||||
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, 2013. There have been no changes to these policies during the nine months ended September 30, 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: | ||||||||||||||||
September 30, 2014 | 31-Dec-13 | |||||||||||||||
Balance at the beginning of year | $ | 338 | $ | 385 | ||||||||||||
Warranty accruals/additions | 374 | 433 | ||||||||||||||
Warranty usage | (383 | ) | (480 | ) | ||||||||||||
Balance at end of period | $ | 329 | $ | 338 | ||||||||||||
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, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Numerator: | ||||||||||||||||
Net income | $ | 1,646 | $ | 1,663 | $ | 3,070 | $ | 3,438 | ||||||||
Denominator: | ||||||||||||||||
Basic weighted average shares outstanding | 9,198,730 | 9,027,764 | 9,182,875 | 9,090,903 | ||||||||||||
Dilutive common stock equivalents using treasury stock method | 408,914 | 379,177 | 433,003 | 394,905 | ||||||||||||
Diluted weighted average shares outstanding | 9,607,644 | 9,406,941 | 9,615,878 | 9,485,808 | ||||||||||||
Basic earnings per common share | $ | 0.18 | $ | 0.18 | $ | 0.33 | $ | 0.38 | ||||||||
Diluted earnings per common share | $ | 0.17 | $ | 0.18 | $ | 0.32 | $ | 0.36 | ||||||||
Weighted average options outstanding | 923,424 | 1,143,283 | 955,606 | 1,131,403 | ||||||||||||
Anti-dilutive options not included in the computations | 276,459 | 167,845 | 169,306 | 157,197 | ||||||||||||
Business_Combinations
Business Combinations | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Business Combinations [Abstract] | ' | |||||||||||||||
Business Combination | ' | |||||||||||||||
Business Combinations | ||||||||||||||||
Sabine | ||||||||||||||||
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 $8,141 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 $667, 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 | $ | 8,141 | ||||||||||||||
Common stock | 1,679 | |||||||||||||||
Contingent consideration | 667 | |||||||||||||||
Total | $ | 10,487 | ||||||||||||||
The fair value of identified assets and liabilities acquired was as follows: | ||||||||||||||||
Fair value | ||||||||||||||||
Cash | $ | 125 | ||||||||||||||
Accounts receivable | 255 | |||||||||||||||
Inventories | 844 | |||||||||||||||
Prepaid and other | 116 | |||||||||||||||
Intangibles | 3,180 | |||||||||||||||
Property and equipment | 292 | |||||||||||||||
Goodwill | 6,555 | |||||||||||||||
Trade accounts payable | (420 | ) | ||||||||||||||
Accrued liabilities | (405 | ) | ||||||||||||||
Stock registration costs | (55 | ) | ||||||||||||||
Total | $ | 10,487 | ||||||||||||||
The fair value of accounts receivable acquired is $255 which is net of an allowance for doubtful accounts of $2. | ||||||||||||||||
The goodwill of $6,555 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 $6,555 related to the acquisition of Sabine is deductible for tax purposes. | ||||||||||||||||
Supplemental Pro Forma Information: | ||||||||||||||||
1) Revenue and net income from the Sabine business from March 8, 2014 to September 30, 2014 was $2,887 and $374 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 September 30, | Nine months ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenue | $ | 15,739 | $ | 13,252 | $ | 42,827 | $ | 37,947 | ||||||||
Earnings | 1,646 | 1,702 | 2,830 | 3,490 | ||||||||||||
Basic earnings per common share | $ | 0.18 | $ | 0.19 | $ | 0.31 | $ | 0.38 | ||||||||
Diluted earnings per common share | $ | 0.17 | $ | 0.18 | $ | 0.29 | $ | 0.37 | ||||||||
3) There were no material, nonrecurring pro forma adjustments directly attributable to the acquisition included in this Supplemental Pro Forma Information. | ||||||||||||||||
Spontania business of Spain-based Dialcom Networks, S.L. | ||||||||||||||||
December 20, 2013 ClearOne, Inc. entered into an agreement to acquire the Spontania business of Spain-based Dialcom Networks, S.L. The Spontania cloud-based service empowers customers to deploy HD video conferencing, web collaboration, and more with equipment most businesses have and use every day - video-conferencing endpoints, desktops, laptops, web browsers, tablets, and smartphones. With Spontania there is no hardware investment and the service operates off of a reservation-less model, enabling on-demand video communications from virtually anywhere, anytime, with anyone on any device. | ||||||||||||||||
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$5.1 million), after certain closing adjustments. ClearOne did not assume any debt or cash. The cash purchase price was paid out of cash on hand. The addition of this technology completes the company’s strategy to build an all-inclusive video collaboration portfolio. | ||||||||||||||||
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 fair value of identified assets and liabilities acquired was as follows: | ||||||||||||||||
Fair value | ||||||||||||||||
Property and equipment | $ | 47 | ||||||||||||||
Intangibles | 2,488 | |||||||||||||||
Goodwill | 2,569 | |||||||||||||||
Accrued liabilities | (52 | ) | ||||||||||||||
Total | $ | 5,052 | ||||||||||||||
The goodwill of $2,569 relates to the acquisition of Spontania cloud-based technology and intangible assets including acquired workforce that does not qualify for separate recognition. | ||||||||||||||||
Supplemental Pro Forma Information: | ||||||||||||||||
1) Revenue and net loss from the Spontania business from April 1, 2014 to September 30, 2014 was $335 and $472 respectively. | ||||||||||||||||
2) Revenue and earnings of the combined entity as though the business combination occurred as of January 1, 2013 is not available. The Spontania business was part of a business unit of Dialcom Networks, S.L., and thus separate stand-alone financial information for Spontania is not available. | ||||||||||||||||
Acquisitions Expenses | ||||||||||||||||
The Company incurred $16 and $459 in total acquisition related expenses, all of which are categorized under General and administrative expenses in the Consolidated Statement of Operations for the three and nine months ended September 30, 2014. |
Marketable_Securities
Marketable Securities | 9 Months Ended | |||||||||||||||||
Sep. 30, 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 September 30, 2014 and December 31, 2013 were as follows: | ||||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||||
cost | unrealized | unrealized | fair value | |||||||||||||||
holding | holding | |||||||||||||||||
gains | losses | |||||||||||||||||
30-Sep-14 | ||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||
Corporate bonds and notes | $ | 19,242 | $ | 126 | $ | (39 | ) | $ | 19,329 | |||||||||
Municipal bonds | 6,078 | 44 | — | 6,122 | ||||||||||||||
Total available-for-sale securities | $ | 25,320 | $ | 170 | $ | (39 | ) | $ | 25,451 | |||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||||
cost | unrealized | unrealized | fair value | |||||||||||||||
holding | holding | |||||||||||||||||
gains | losses | |||||||||||||||||
December 31, 2013 | ||||||||||||||||||
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 September 30, 2014: | ||||||||||||||||||
Amortized | Estimated | |||||||||||||||||
cost | fair value | |||||||||||||||||
September 30, 2014 | ||||||||||||||||||
Due within one year | $ | 5,783 | $ | 5,785 | ||||||||||||||
Due after one year through five years | 18,852 | 18,970 | ||||||||||||||||
Due after five years through ten years | 685 | 696 | ||||||||||||||||
Total available-for-sale securities | $ | 25,320 | $ | 25,451 | ||||||||||||||
Intangible_Assets
Intangible Assets | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Intangible Assets | ' | |||||||||||||||
Intangible Assets | ||||||||||||||||
Intangible assets as of September 30, 2014 and December 31, 2013 consisted of the following: | ||||||||||||||||
Estimated useful lives | 30-Sep-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 | 5,449 | 2,961 | |||||||||||||
Other | 5 years | 238 | 208 | |||||||||||||
11,432 | 5,674 | |||||||||||||||
Accumulated amortization | (2,665 | ) | (1,964 | ) | ||||||||||||
$ | 8,767 | $ | 3,710 | |||||||||||||
The amortization of intangibles with finite lives for the three and nine months ended September 30, 2014 and 2013 was as follows: | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Amortization of intangibles with finite lives | $ | 268 | $ | 142 | $ | 701 | $ | 404 | ||||||||
The estimated future amortization expense of intangible assets is as follows: | ||||||||||||||||
Years ending December 31, | Estimated future amortization expense | |||||||||||||||
2014 (remainder) | $ | 253 | ||||||||||||||
2015 | 1,013 | |||||||||||||||
2016 | 976 | |||||||||||||||
2017 | 887 | |||||||||||||||
2018 | 866 | |||||||||||||||
Thereafter | 4,772 | |||||||||||||||
$ | 8,767 | |||||||||||||||
Inventories
Inventories | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Inventory Disclosure [Abstract] | ' | |||||||||||||||
Inventories | ' | |||||||||||||||
Inventories | ||||||||||||||||
Inventories, net of reserves, as of September 30, 2014 and December 31, 2013 consisted of the following: | ||||||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||||
Current: | ||||||||||||||||
Raw materials | $ | 2,340 | $ | 1,362 | ||||||||||||
Finished goods | 10,940 | 10,916 | ||||||||||||||
$ | 13,280 | $ | 12,278 | |||||||||||||
Long-term: | ||||||||||||||||
Raw materials | $ | 329 | $ | 227 | ||||||||||||
Finished goods | 663 | 324 | ||||||||||||||
$ | 992 | $ | 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 $1,607 and $1,520 as of September 30, 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 and nine months ended September 30, 2014 and 2013, respectively. | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Losses incurred on valuation of inventory and write-off of obsolete inventory | $ | 113 | $ | 256 | $ | 537 | $ | 524 | ||||||||
Sharebased_Compensation_Expens
Share-based Compensation Expense | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
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, 2014 and 2013 has been recorded as follows: | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Cost of goods sold | $ | 2 | $ | 2 | $ | 6 | $ | 7 | ||||||||
Sales and marketing | 20 | 21 | 60 | 55 | ||||||||||||
Research and product development | 12 | 14 | 33 | 37 | ||||||||||||
General and administrative | 64 | 42 | 167 | 106 | ||||||||||||
$ | 98 | $ | 79 | $ | 266 | $ | 205 | |||||||||
As of September 30, 2014, the total remaining unrecognized compensation cost related to non-vested stock options, net of forfeitures, was approximately $1,169, which will be recognized over a weighted average period of 2.76 years. |
Shareholders_Equity
Shareholders' Equity | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
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, 2014 and 2013, respectively: | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Balance at the beginning of the period | $ | 73,930 | $ | 67,655 | $ | 70,335 | $ | 66,668 | ||||||||
Net income during the period | 1,646 | 1,663 | 3,070 | 3,438 | ||||||||||||
Treasury stock purchased | (758 | ) | (1,200 | ) | (1,927 | ) | (2,191 | ) | ||||||||
Share-based compensation | 98 | 79 | 266 | 205 | ||||||||||||
Tax benefit - stock option exercises | 2 | 55 | 92 | 55 | ||||||||||||
Exercise of stock options | 32 | 292 | 1,297 | 456 | ||||||||||||
Stock issued for acquisition | — | — | 1,679 | — | ||||||||||||
Unrealized gain (loss) on available-for-sale securities, net of tax | (78 | ) | 54 | 60 | (33 | ) | ||||||||||
Balance at end of the period | $ | 74,872 | $ | 68,598 | $ | 74,872 | $ | 68,598 | ||||||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||
Sep. 30, 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 September 30, 2014 and December 31, 2013: | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(In thousands) | |||||||||||||||||
30-Sep-14 | |||||||||||||||||
Corporate bonds and notes | $ | — | $ | 19,329 | $ | — | $ | 19,329 | |||||||||
Municipal bonds | — | 6,122 | — | 6,122 | |||||||||||||
Total | $ | — | $ | 25,451 | $ | — | $ | 25,451 | |||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(In thousands) | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
Corporate bonds and notes | $ | — | $ | 18,857 | $ | — | $ | 18,857 | |||||||||
Municipal bonds | — | 6,669 | — | 6,669 | |||||||||||||
Total | $ | — | $ | 25,526 | $ | — | $ | 25,526 | |||||||||
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
The Company's forecasted effective tax rate at September 30, 2014 was 35.7%, a 2.4% increase from the 33.3% effective tax rate recorded at December 31, 2013. The forecasted effective tax rate of 35.7% 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 36.3%. 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, 2014. | |
After discrete tax expense of $24, the effective tax rate for the nine months ended September 30, 2014 was 40.4%. The discrete tax expense is primarily attributable to adjustments to prior-year research and development tax credits, offset by tax benefits of share-based compensation. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
The Company evaluated its consolidated financial statements as of and for the nine months ended September 30, 2014 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, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
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, 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 the Company's financial position as of September 30, 2014 and December 31, 2013, the results of operations for the three and nine months ended September 30, 2014 and 2013, and the statements of cash flows for the nine months ended September 30, 2014 and 2013. The results of operations for the three and nine months ended September 30, 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 the Company's Annual Report on Form 10-K for the year ended December 31, 2013 filed with the SEC on March 20, 2014. | |
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, 2014 | ||||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||||
Schedule of Product Warranty Liability | ' | |||||||||||||||
The details of changes in the Company’s warranty accrual are as follows: | ||||||||||||||||
September 30, 2014 | 31-Dec-13 | |||||||||||||||
Balance at the beginning of year | $ | 338 | $ | 385 | ||||||||||||
Warranty accruals/additions | 374 | 433 | ||||||||||||||
Warranty usage | (383 | ) | (480 | ) | ||||||||||||
Balance at end of period | $ | 329 | $ | 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 September 30, | Nine months ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Numerator: | ||||||||||||||||
Net income | $ | 1,646 | $ | 1,663 | $ | 3,070 | $ | 3,438 | ||||||||
Denominator: | ||||||||||||||||
Basic weighted average shares outstanding | 9,198,730 | 9,027,764 | 9,182,875 | 9,090,903 | ||||||||||||
Dilutive common stock equivalents using treasury stock method | 408,914 | 379,177 | 433,003 | 394,905 | ||||||||||||
Diluted weighted average shares outstanding | 9,607,644 | 9,406,941 | 9,615,878 | 9,485,808 | ||||||||||||
Basic earnings per common share | $ | 0.18 | $ | 0.18 | $ | 0.33 | $ | 0.38 | ||||||||
Diluted earnings per common share | $ | 0.17 | $ | 0.18 | $ | 0.32 | $ | 0.36 | ||||||||
Weighted average options outstanding | 923,424 | 1,143,283 | 955,606 | 1,131,403 | ||||||||||||
Anti-dilutive options not included in the computations | 276,459 | 167,845 | 169,306 | 157,197 | ||||||||||||
Business_Combinations_Business
Business Combinations Business Combinations (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Business Combinations [Abstract] | ' | |||||||||||||||
Schedule of Consideration Paid for the Acquisition | ' | |||||||||||||||
The following table summarizes the consideration paid for the acquisition: | ||||||||||||||||
Consideration | ||||||||||||||||
Cash | $ | 8,141 | ||||||||||||||
Common stock | 1,679 | |||||||||||||||
Contingent consideration | 667 | |||||||||||||||
Total | $ | 10,487 | ||||||||||||||
Schedule of Fair Value of Identified Assets and Liabilities Acquired | ' | |||||||||||||||
The fair value of identified assets and liabilities acquired was as follows: | ||||||||||||||||
Fair value | ||||||||||||||||
Property and equipment | $ | 47 | ||||||||||||||
Intangibles | 2,488 | |||||||||||||||
Goodwill | 2,569 | |||||||||||||||
Accrued liabilities | (52 | ) | ||||||||||||||
Total | $ | 5,052 | ||||||||||||||
The fair value of identified assets and liabilities acquired was as follows: | ||||||||||||||||
Fair value | ||||||||||||||||
Cash | $ | 125 | ||||||||||||||
Accounts receivable | 255 | |||||||||||||||
Inventories | 844 | |||||||||||||||
Prepaid and other | 116 | |||||||||||||||
Intangibles | 3,180 | |||||||||||||||
Property and equipment | 292 | |||||||||||||||
Goodwill | 6,555 | |||||||||||||||
Trade accounts payable | (420 | ) | ||||||||||||||
Accrued liabilities | (405 | ) | ||||||||||||||
Stock registration costs | (55 | ) | ||||||||||||||
Total | $ | 10,487 | ||||||||||||||
Schedule of Revenue and Earnings of the Combined Entity as Though the Business Combination | ' | |||||||||||||||
Revenue and earnings of the combined entity as though the business combination occurred as of January 1, 2013 were as follows: | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenue | $ | 15,739 | $ | 13,252 | $ | 42,827 | $ | 37,947 | ||||||||
Earnings | 1,646 | 1,702 | 2,830 | 3,490 | ||||||||||||
Basic earnings per common share | $ | 0.18 | $ | 0.19 | $ | 0.31 | $ | 0.38 | ||||||||
Diluted earnings per common share | $ | 0.17 | $ | 0.18 | $ | 0.29 | $ | 0.37 | ||||||||
Marketable_Securities_Tables
Marketable Securities (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 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 September 30, 2014 and December 31, 2013 were as follows: | ||||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||||
cost | unrealized | unrealized | fair value | |||||||||||||||
holding | holding | |||||||||||||||||
gains | losses | |||||||||||||||||
30-Sep-14 | ||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||
Corporate bonds and notes | $ | 19,242 | $ | 126 | $ | (39 | ) | $ | 19,329 | |||||||||
Municipal bonds | 6,078 | 44 | — | 6,122 | ||||||||||||||
Total available-for-sale securities | $ | 25,320 | $ | 170 | $ | (39 | ) | $ | 25,451 | |||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||||
cost | unrealized | unrealized | fair value | |||||||||||||||
holding | holding | |||||||||||||||||
gains | losses | |||||||||||||||||
December 31, 2013 | ||||||||||||||||||
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 September 30, 2014: | ||||||||||||||||||
Amortized | Estimated | |||||||||||||||||
cost | fair value | |||||||||||||||||
September 30, 2014 | ||||||||||||||||||
Due within one year | $ | 5,783 | $ | 5,785 | ||||||||||||||
Due after one year through five years | 18,852 | 18,970 | ||||||||||||||||
Due after five years through ten years | 685 | 696 | ||||||||||||||||
Total available-for-sale securities | $ | 25,320 | $ | 25,451 | ||||||||||||||
Intangible_Assets_Intangible_A
Intangible Assets Intangible Assets (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets | ' | |||||||||||||||
Intangible assets as of September 30, 2014 and December 31, 2013 consisted of the following: | ||||||||||||||||
Estimated useful lives | 30-Sep-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 | 5,449 | 2,961 | |||||||||||||
Other | 5 years | 238 | 208 | |||||||||||||
11,432 | 5,674 | |||||||||||||||
Accumulated amortization | (2,665 | ) | (1,964 | ) | ||||||||||||
$ | 8,767 | $ | 3,710 | |||||||||||||
Schedule of Finite-Lived Intangible Assets Amortization Expense | ' | |||||||||||||||
The amortization of intangibles with finite lives for the three and nine months ended September 30, 2014 and 2013 was as follows: | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Amortization of intangibles with finite lives | $ | 268 | $ | 142 | $ | 701 | $ | 404 | ||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | ' | |||||||||||||||
The estimated future amortization expense of intangible assets is as follows: | ||||||||||||||||
Years ending December 31, | Estimated future amortization expense | |||||||||||||||
2014 (remainder) | $ | 253 | ||||||||||||||
2015 | 1,013 | |||||||||||||||
2016 | 976 | |||||||||||||||
2017 | 887 | |||||||||||||||
2018 | 866 | |||||||||||||||
Thereafter | 4,772 | |||||||||||||||
$ | 8,767 | |||||||||||||||
Inventories_Tables
Inventories (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Inventory Disclosure [Abstract] | ' | |||||||||||||||
Schedule of inventory, net of reserves | ' | |||||||||||||||
Inventories, net of reserves, as of September 30, 2014 and December 31, 2013 consisted of the following: | ||||||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||||
Current: | ||||||||||||||||
Raw materials | $ | 2,340 | $ | 1,362 | ||||||||||||
Finished goods | 10,940 | 10,916 | ||||||||||||||
$ | 13,280 | $ | 12,278 | |||||||||||||
Long-term: | ||||||||||||||||
Raw materials | $ | 329 | $ | 227 | ||||||||||||
Finished goods | 663 | 324 | ||||||||||||||
$ | 992 | $ | 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 and nine months ended September 30, 2014 and 2013, respectively. | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Losses incurred on valuation of inventory and write-off of obsolete inventory | $ | 113 | $ | 256 | $ | 537 | $ | 524 | ||||||||
Sharebased_Compensation_Expens1
Share-based Compensation Expense (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
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, 2014 and 2013 has been recorded as follows: | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Cost of goods sold | $ | 2 | $ | 2 | $ | 6 | $ | 7 | ||||||||
Sales and marketing | 20 | 21 | 60 | 55 | ||||||||||||
Research and product development | 12 | 14 | 33 | 37 | ||||||||||||
General and administrative | 64 | 42 | 167 | 106 | ||||||||||||
$ | 98 | $ | 79 | $ | 266 | $ | 205 | |||||||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
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, 2014 and 2013, respectively: | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Balance at the beginning of the period | $ | 73,930 | $ | 67,655 | $ | 70,335 | $ | 66,668 | ||||||||
Net income during the period | 1,646 | 1,663 | 3,070 | 3,438 | ||||||||||||
Treasury stock purchased | (758 | ) | (1,200 | ) | (1,927 | ) | (2,191 | ) | ||||||||
Share-based compensation | 98 | 79 | 266 | 205 | ||||||||||||
Tax benefit - stock option exercises | 2 | 55 | 92 | 55 | ||||||||||||
Exercise of stock options | 32 | 292 | 1,297 | 456 | ||||||||||||
Stock issued for acquisition | — | — | 1,679 | — | ||||||||||||
Unrealized gain (loss) on available-for-sale securities, net of tax | (78 | ) | 54 | 60 | (33 | ) | ||||||||||
Balance at end of the period | $ | 74,872 | $ | 68,598 | $ | 74,872 | $ | 68,598 | ||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 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 September 30, 2014 and December 31, 2013: | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(In thousands) | |||||||||||||||||
30-Sep-14 | |||||||||||||||||
Corporate bonds and notes | $ | — | $ | 19,329 | $ | — | $ | 19,329 | |||||||||
Municipal bonds | — | 6,122 | — | 6,122 | |||||||||||||
Total | $ | — | $ | 25,451 | $ | — | $ | 25,451 | |||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(In thousands) | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
Corporate bonds and notes | $ | — | $ | 18,857 | $ | — | $ | 18,857 | |||||||||
Municipal bonds | — | 6,669 | — | 6,669 | |||||||||||||
Total | $ | — | $ | 25,526 | $ | — | $ | 25,526 | |||||||||
Business_Description_Basis_of_3
Business Description, Basis of Presentation and Significant Accounting Policies Summary of Significant Accounting Policies - Warranties (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Movement in Standard Product Warranty Accrual [Roll Forward] | ' | ' |
Balance at the beginning of year | $338 | $385 |
Warranty accruals/additions | 374 | 433 |
Warranty usage | -383 | -480 |
Balance at end of period | $329 | ' |
Business_Description_Basis_of_4
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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Numerator: | ' | ' | ' | ' |
Net income during the period | $1,646 | $1,663 | $3,070 | $3,438 |
Denominator: | ' | ' | ' | ' |
Basic weighted average shares outstanding (in shares) | 9,198,730 | 9,027,764 | 9,182,875 | 9,090,903 |
Dilutive common stock equivalents using treasury stock method (in shares) | 408,914 | 379,177 | 433,003 | 394,905 |
Diluted weighted average shares outstanding (in shares) | 9,607,644 | 9,406,941 | 9,615,878 | 9,485,808 |
Basic earnings per common share (in dollars per share) | $0.18 | $0.18 | $0.33 | $0.38 |
Diluted earnings per common share (in dollars per share) | $0.17 | $0.18 | $0.32 | $0.36 |
Weighted average options outstanding (in shares) | 923,424 | 1,143,283 | 955,606 | 1,131,403 |
Anti-dilutive options not included in the computations (in shares) | 276,459 | 167,845 | 169,306 | 157,197 |
Business_Combinations_Narrativ
Business Combinations Narrative (Details) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 7 Months Ended | 9 Months Ended | 9 Months Ended | 0 Months Ended | 6 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Mar. 07, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Apr. 01, 2014 | Apr. 01, 2014 | Sep. 30, 2014 | Apr. 01, 2014 |
USD ($) | USD ($) | Sabine, Inc. (Sabine) [Member] | Sabine, Inc. (Sabine) [Member] | Sabine, Inc. (Sabine) [Member] | Sabine, Inc. (Sabine) [Member] | Sabine, Inc. (Sabine) [Member] | Sabine, Inc. (Sabine) [Member] | Sabine, Inc. (Sabine) [Member] | Sabine, Inc. (Sabine) [Member] | Spontania [Member] | Spontania [Member] | Spontania [Member] | Spontania [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Restricted Stock [Member] | Reserve for Earn-out Receivable [Member] | USD ($) | EUR (€) | USD ($) | USD ($) | |||
USD ($) | USD ($) | |||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash | ' | ' | ' | ' | ' | $8,141 | ' | ' | ' | ' | $5,100 | € 3,660 | ' | ' |
Contingent consideration | ' | ' | ' | ' | ' | ' | ' | ' | ' | 667 | ' | ' | ' | ' |
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | ' | ' | ' | ' | ' | ' | ' | ' | 150,000 | ' | ' | ' | ' | ' |
Common stock | ' | ' | ' | ' | ' | ' | ' | ' | 1,679 | ' | ' | ' | ' | ' |
Accounts receivable | ' | ' | ' | ' | ' | ' | ' | 255 | ' | ' | ' | ' | ' | ' |
Business Combination, Acquired Receivables, Estimated Uncollectible | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' |
Goodwill | ' | ' | ' | ' | ' | ' | ' | 6,555 | ' | ' | ' | ' | ' | 2,569 |
Pro forma revenue | ' | ' | 15,739 | 13,252 | 2,887 | 42,827 | 37,947 | ' | ' | ' | ' | ' | 335 | ' |
Proforma net loss | ' | ' | 1,646 | 1,702 | 374 | 2,830 | 3,490 | ' | ' | ' | ' | ' | -472 | ' |
Acquisition related costs | $16 | $459 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business_Combinations_Schedule
Business Combinations Schedule of Consideration Paid for the Acquisition (Details) (Sabine, Inc. (Sabine) [Member], USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 |
Business Acquisition [Line Items] | ' |
Cash | $8,141 |
Restricted Stock [Member] | ' |
Business Acquisition [Line Items] | ' |
Common stock | 1,679 |
Reserve for Earn-out Receivable [Member] | ' |
Business Acquisition [Line Items] | ' |
Contingent consideration | 667 |
Total | $10,487 |
Business_Combinations_Schedule1
Business Combinations Schedule of Fair Value of Identified Assets and Liabilities Acquired (Details) (USD $) | Mar. 07, 2014 | Apr. 01, 2014 |
In Thousands, unless otherwise specified | Sabine, Inc. (Sabine) [Member] | Spontania [Member] |
Business Acquisition [Line Items] | ' | ' |
Cash | $125 | ' |
Accounts receivable | 255 | ' |
Inventories | 844 | ' |
Prepaid and other | 116 | ' |
Intangibles | 3,180 | 2,488 |
Property and equipment | 292 | 47 |
Goodwill | 6,555 | 2,569 |
Trade accounts payable | 420 | ' |
Accrued liabilities | -405 | -52 |
Stock registration costs | -55 | ' |
Total | $10,487 | $5,052 |
Business_Combinations_Schedule2
Business Combinations Schedule of Revenue and Earnings of the Combined Entity as Though the Business Combination (Details) (Sabine, Inc. (Sabine) [Member], USD $) | 3 Months Ended | 7 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 |
Sabine, Inc. (Sabine) [Member] | ' | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Revenue | $15,739 | $13,252 | $2,887 | $42,827 | $37,947 |
Earnings | $1,646 | $1,702 | $374 | $2,830 | $3,490 |
Basic earnings per common share (in dollars per share) | $0.18 | $0.19 | ' | $0.31 | $0.38 |
Diluted earnings per common share (in dollars per share) | $0.17 | $0.18 | ' | $0.29 | $0.37 |
Marketable_Securities_Details
Marketable Securities (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale securities, Amortized cost | $25,320 | $25,490 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 170 | 90 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | -39 | -54 |
Available-for-sale Securities, Fair Value Disclosure | 25,451 | 25,526 |
Corporate Debt Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale securities, Amortized cost | 19,242 | 18,832 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 126 | 68 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | -39 | -43 |
Available-for-sale Securities, Fair Value Disclosure | 19,329 | 18,857 |
Municipal Bonds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale securities, Amortized cost | 6,078 | 6,658 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 44 | 22 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | -11 |
Available-for-sale Securities, Fair Value Disclosure | $6,122 | $6,669 |
Marketable_Securities_Availabl
Marketable Securities Available-for-sale Securities (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investments, Debt and Equity Securities [Abstract] | ' | ' |
Due within one year, Amortized cost | $5,783 | ' |
Due after one year through five years, Amortized cost | 18,852 | ' |
Due after five years through ten years, Amortized cost | 685 | ' |
Total available-for-sale securities, Amortized cost | 25,320 | 25,490 |
Due within one year, Estimated fair value | 5,785 | ' |
Due after one year through five years, Estimated fair value | 18,970 | ' |
Due after five years through ten years, Estimated fair value | 696 | ' |
Total available-for-sale securities, Estimated fair value | $25,451 | $25,526 |
Intangible_Assets_Intangibles_
Intangible Assets - Intangibles (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Finite and Indefiite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Total finite and indefinite-lived intangible assets, gross | $11,432 | ' | $11,432 | ' | $5,674 |
Accumulated amortization | -2,665 | ' | -2,665 | ' | -1,964 |
Intangibles, net | 8,767 | ' | 8,767 | ' | 3,710 |
Amortization of intangibles with finite lives | 268 | 142 | 701 | 404 | ' |
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 | 5,310 | ' | 5,310 | ' | 2,070 |
Proprietary software | ' | ' | ' | ' | ' |
Finite and Indefiite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Gross | 5,449 | ' | 5,449 | ' | 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 | $238 | ' | $238 | ' | $208 |
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, 2014 |
In Thousands, unless otherwise specified | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' |
2014 (remainder) | $253 |
2015 | 1,013 |
2016 | 976 |
2017 | 887 |
2018 | 866 |
Thereafter | 4,772 |
Finite-Lived Intangible Assets, Net | $8,767 |
Inventories_Details
Inventories (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Current: | ' | ' | ' | ' | ' |
Inventory, Current, Raw Materials, Net of Reserves | $2,340 | ' | $2,340 | ' | $1,362 |
Inventory, Current, Finished Goods, Net of Reserves | 10,940 | ' | 10,940 | ' | 10,916 |
Inventories, current | 13,280 | ' | 13,280 | ' | 12,278 |
Long-term: | ' | ' | ' | ' | ' |
Raw materials | 329 | ' | 329 | ' | 227 |
Finished Goods | 663 | ' | 663 | ' | 324 |
Inventory, Noncurrent | 992 | ' | 992 | ' | 551 |
Inventory, finished goods, amount under consignment | 1,607 | ' | 1,607 | ' | 1,520 |
Losses incurred on valuation of inventory and write-off of obsolete inventory | $113 | $256 | $537 | $524 | ' |
Sharebased_Compensation_Expens2
Share-based Compensation Expense (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | $98 | $79 | $266 | $205 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 1,169 | ' | 1,169 | ' |
Outstanding, weighted average remaining contractual term (in years) | ' | ' | '2 years 9 months 4 days | ' |
Cost of goods sold | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 2 | 2 | 6 | 7 |
Sales and marketing | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 20 | 21 | 60 | 55 |
Research and product development | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 12 | 14 | 33 | 37 |
General and administrative | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | $64 | $42 | $167 | $106 |
Shareholders_Equity_Details
Shareholders' Equity (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' |
Balance at the beginning of the period | $73,930 | $67,655 | $70,335 | $66,668 |
Net income during the period | 1,646 | 1,663 | 3,070 | 3,438 |
Treasury stock purchased | -758 | -1,200 | -1,927 | -2,191 |
Share-based compensation | 98 | 79 | 266 | 205 |
Tax benefit - stock option exercises | 2 | 55 | 92 | 55 |
Exercise of stock options | 32 | 292 | 1,297 | 456 |
Stock issued for acquisition | 0 | 0 | 1,679 | 0 |
Unrealized gain (loss) on available-for-sale securities, net of tax | -78 | 54 | 60 | -33 |
Balance at end of the period | $74,872 | $68,598 | $74,872 | $68,598 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | $25,451 | $25,526 |
Fair Value, Measurements, Recurring [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 25,451 | 25,526 |
Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 19,329 | 18,857 |
Fair Value, Measurements, Recurring [Member] | Municipal Bonds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 6,122 | 6,669 |
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 | 25,451 | 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] | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 19,329 | 18,857 |
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 | 6,122 | 6,669 |
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 | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ' | ' |
Effective tax rate, forecasted | 35.70% | ' |
Effective Income Tax Rate, Continuing Operations, Forecasted Increase (Decrease) in Rate | 2.40% | ' |
Effective Income Tax Rate, Continuing Operations | ' | 33.30% |
Unrecognized Tax expense (benefits) that Would Impact Effective Tax Rate | $24 | ' |
Effective Tax Rate, After Discreet Benefits | 40.40% | ' |