Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 30, 2016 | |
Document Information [Line Items] | ||
Entity Registrant Name | CLEARONE INC | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Amendment Flag | false | |
Entity Central Index Key | 840,715 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 9,253,578 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 13,913 | $ 13,412 |
Marketable securities | 5,890 | 7,161 |
Receivables, net of allowance for doubtful accounts of $77 and $54, respectively | 8,133 | 8,692 |
Inventories | 14,470 | 13,447 |
Distributor channel inventories | 1,445 | 1,628 |
Prepaid expenses and other assets | 2,427 | 1,806 |
Total current assets | 46,278 | 46,146 |
Long-term marketable securities | 20,347 | 19,204 |
Long-term inventories, net | 2,021 | 2,018 |
Property and equipment, net | 1,468 | 1,589 |
Intangibles, net | 6,368 | 6,638 |
Goodwill | 12,724 | 12,724 |
Deferred income taxes | 5,020 | 5,093 |
Other assets | 127 | 117 |
Total assets | 94,353 | 93,529 |
Current liabilities: | ||
Accounts payable | 4,195 | 2,815 |
Accrued liabilities | 2,144 | 2,243 |
Deferred product revenue | 4,203 | 4,549 |
Total current liabilities | 10,542 | 9,607 |
Deferred rent | 154 | 150 |
Other long-term liabilities | 1,152 | 1,203 |
Total liabilities | 11,848 | 10,960 |
Shareholders' equity: | ||
Common stock, par value $0.001, 50,000,000 shares authorized, 9,219,978 and 9,183,957 shares issued and outstanding | 9 | 9 |
Additional paid-in capital | 45,568 | 46,291 |
Accumulated other comprehensive (loss) | (12) | (166) |
Retained earnings | 36,940 | 36,435 |
Total shareholders' equity | 82,505 | 82,569 |
Total liabilities and shareholders' equity | $ 94,353 | $ 93,529 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Allowance for doubtful accounts | $ 77 | $ 54 |
Common Stock: | ||
Par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, sharse issued (in shares) | 9,219,978 | 9,183,957 |
Common stock, shares outstanding (in shares) | 9,219,978 | 9,183,957 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenue | $ 13,033 | $ 13,586 |
Cost of goods sold | 4,568 | 5,124 |
Gross profit | 8,465 | 8,462 |
Operating expenses: | ||
Sales and marketing | 2,625 | 2,622 |
Research and product development | 2,270 | 1,941 |
General and administrative | 1,598 | 2,000 |
Total operating expenses | 6,493 | 6,563 |
Operating income | 1,972 | 1,899 |
Other income, net | 11 | 104 |
Income before income taxes | 1,983 | 2,003 |
Provision for income taxes | 615 | 731 |
Net income | $ 1,368 | $ 1,272 |
Basic earnings per common share | $ 0.15 | $ 0.14 |
Diluted earnings per common share | $ 0.14 | $ 0.13 |
Basic weighted average shares outstanding | 9,196,522 | 9,100,107 |
Diluted weighted average shares outstanding | 9,513,440 | 9,508,479 |
Other comprehensive income: | ||
Unrealized gain on available-for-sale securities, net of tax | $ 121 | $ 55 |
Change in foreign currency translation adjustment | 33 | (180) |
Comprehensive income | $ 1,522 | $ 1,147 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 1,368 | $ 1,272 |
Adjustments to reconcile net income to net cash provided by operations: | ||
Depreciation and amortization expense | 483 | 521 |
Amortization of deferred rent | (20) | (23) |
Stock-based compensation expense | 148 | 238 |
Provision for doubtful accounts, net | 25 | 21 |
Write-down of inventory to net realizable value | 119 | 47 |
Loss on disposal of assets | 49 | 0 |
Tax benefit from exercise of stock options | (583) | (7) |
Deferred income taxes | (47) | 0 |
Changes in operating assets and liabilities: | ||
Receivables | 562 | 1,205 |
Inventories | (964) | (806) |
Prepaid expenses and other assets | (144) | 877 |
Accounts payable | 1,378 | 820 |
Accrued liabilities | (82) | (832) |
Income taxes payable | 106 | 338 |
Deferred product revenue | (354) | (291) |
Other long-term liabilities | (52) | (537) |
Net cash provided by operating activities | 2,086 | 2,843 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (139) | (76) |
Proceeds from maturities and sales of marketable securities | 2,787 | 2,376 |
Purchases of marketable securities | (2,538) | (1,612) |
Net cash provided by investing activities | 110 | 688 |
Cash flows from financing activities: | ||
Proceeds from the exercise of stock options | 318 | 20 |
Repurchase and cancellation of stock options | (1,752) | 0 |
Tax benefit from exercise of stock options | 583 | 7 |
Dividends paid | (459) | 0 |
Repurchase and cancellation of stock | (404) | 0 |
Net cash (used in) provided by financing activities | (1,714) | 27 |
Effect of exchange rate changes on cash and cash equivalents | 19 | (133) |
Net increase in cash and cash equivalents | 501 | 3,425 |
Cash and cash equivalents at the beginning of the period | 13,412 | 7,440 |
Cash and cash equivalents at the end of the period | 13,913 | 10,865 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | $ 537 | $ 881 |
Business Description, Basis of
Business Description, Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Business Description, Basis of Presentation and Significant Accounting Policies | 1. 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 31 st . 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, 2016 and 2015 , 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 condensed consolidated financial statements contain all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of our financial position as of March 31, 2016 and December 31, 2015 , the results of operations for the three months ended March 31, 2016 and 2015 , and the statements of cash flows for the three months ended March 31, 2016 and 2015 . The results of operations for the three months ended March 31, 2016 and 2015 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, 2015 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, 2015 . There have been no changes to these policies during the three months ended March 31, 2016 that are of significance or potential significance to the Company. Recent Accounting Pronouncements: In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either a full retrospective or retrospective with cumulative effect transition method. Early adoption is not permitted. The updated standard becomes effective for the Company on January 1, 2017. The Company has not yet selected a transition method and is currently evaluating the effect that the updated standard will have on the consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740), simplifying the presentation of deferred taxes on the balance sheet by requiring companies to classify everything as either a non-current asset or non-current liability. Early adoption of this ASU is permitted. ClearOne has adopted this standard update early as it would simplify the presentation of taxes on the balance sheet and within the income tax footnote. In February 2016, FASB released Accounting Standards Update No. 2016-02, Leases (Topic 842) to bring transparency to lessee balance sheets. The ASU will require organizations that lease assets (lessees) to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than 12 months. The standard will apply to both types of leases-capital (or finance) leases and operating leases. Previously, GAAP has required only capital leases to be recognized on lessee balance sheets. The standard will take effect the Company for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early application will be permitted for all organizations. The Company has not yet selected a transition method and is currently evaluating the effect that the updated standard will have on the consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Shared-Based Payment Accounting. The standard is intended to simplify several areas of accounting for share-based compensation arrangements, including the income tax impact, classification on the statement of cash flows and forfeitures. ASU 2016-09 is effective for the Company on January 1, 2017. The Company is currently evaluating the impact that ASU 2016-09 will have on the consolidated financial statements. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table sets forth the computation of basic and diluted earnings per common share: Three months ended March 31, 2016 2015 Numerator: Net income $ 1,368 $ 1,272 Denominator: Basic weighted average shares outstanding 9,196,522 9,100,107 Dilutive common stock equivalents using treasury stock method 316,918 408,372 Diluted weighted average shares outstanding 9,513,440 9,508,479 Basic earnings per common share $ 0.15 $ 0.14 Diluted earnings per common share $ 0.14 $ 0.13 Weighted average options outstanding 1,000,571 1,037,137 Anti-dilutive options not included in the computations 289,623 268,709 |
Marketable Securities
Marketable Securities | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 and December 31, 2015 were as follows: Amortized cost Gross unrealized holding gains Gross unrealized holding losses Estimated fair value March 31, 2016 Available-for-sale securities: Corporate bonds and notes $ 19,422 $ 136 $ (52 ) $ 19,506 Municipal bonds 6,691 41 (1 ) 6,731 Total available-for-sale securities $ 26,113 $ 177 $ (53 ) $ 26,237 Amortized cost Gross unrealized holding gains Gross unrealized holding losses Estimated fair value December 31, 2015 Available-for-sale securities: Corporate bonds and notes $ 20,827 $ 50 $ (133 ) $ 20,744 Municipal bonds 5,608 18 (5 ) 5,621 Total available-for-sale securities $ 26,435 $ 68 $ (138 ) $ 26,365 Maturities of marketable securities classified as available-for-sale securities were as follows at March 31, 2016 : Amortized cost Estimated fair value March 31, 2016 Due within one year $ 5,881 $ 5,890 Due after one year through five years 19,247 19,365 Due after five years through ten years 985 982 Total available-for-sale securities $ 26,113 $ 26,237 Debt securities in an unrealized loss position as of March 31, 2016 were not deemed impaired at acquisition and subsequent declines in fair value are not deemed attributed to declines in credit quality. Management believes that it is more likely than not that the securities will receive a full recovery of par value. The available-for-sale marketable securities in a gross unrealized loss position as of March 31, 2016 are summarized as follows: Less than 12 months More than 12 months Total (In thousands) Estimated fair value Gross unrealized holding losses Estimated fair value Gross unrealized holding losses Estimated fair value Gross unrealized holding losses As of March 31, 2016 Corporate bonds and notes $ 3,416 $ (38 ) $ 1,644 $ (14 ) $ 5,060 $ (52 ) Municipal bonds — — 200 (1 ) 200 (1 ) $ 3,416 $ (38 ) $ 1,844 $ (15 ) $ 5,260 $ (53 ) |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories, net of reserves, as of March 31, 2016 and December 31, 2015 consisted of the following: March 31, 2016 December 31, 2015 Current: Raw materials $ 3,404 $ 2,735 Finished goods 11,066 10,712 $ 14,470 $ 13,447 Long-term: Raw materials $ 438 $ 375 Finished goods 1,583 1,643 $ 2,021 $ 2,018 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 do not include distributor channel inventories in the amounts of approximately $1,445 and $1,628 as of March 31, 2016 and December 31, 2015 , respectively. Distributor channel inventories represent 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, 2016 and 2015 , respectively. Three months ended March 31, 2016 2015 Net loss (gain) on valuation of inventory and write-off of obsolete inventory $ 119 $ 47 |
Share-Based Payments
Share-Based Payments | 3 Months Ended |
Mar. 31, 2016 | |
Shareholders' Equity and Share-based Payments [Abstract] | |
Share-Based Compensation | Share-based Compensation Employee Stock Option Plans The Company’s share-based incentive plans offering stock options primarily consists of two plans. Under both plans, one new share is issued for each stock option exercised. The plans are described below. The Company’s 1998 Incentive Plan (the “1998 Plan”) was the Company's primary plan through November 2007. Under this plan shares of common stock was made available for issuance to employees and directors. Through December 1999, 1,066,000 options were granted that would cliff vest after 9.8 years; however, such vesting was accelerated for 637,089 of these options upon meeting certain earnings per share goals through the fiscal year ended June 30, 2003. Subsequent to December 1999 and through June 2002, 1,248,250 options were granted that would cliff vest after 6.0 years; however, such vesting was accelerated for 300,494 of these options upon meeting certain earnings per share goals through the fiscal year ended June 30, 2005. The Company's 2007 Equity Incentive Plan (the “2007 Plan”) was restated and approved by the shareholders on December 12, 2014. Provisions of the restated 2007 Plan include the granting of up to 2,000,000 incentive and non-qualified stock options, stock appreciation rights, restricted stock and restricted stock units. Options may be granted to employees, officers, non-employee directors and other service providers and may be granted upon such terms as the Compensation Committee of the Board of Directors determines in their sole discretion. Of the options granted subsequent to June 2002, all vesting schedules are based on 3 or 4-year vesting schedules, with either one-third or one-fourth vesting on the first anniversary and the remaining options vesting ratably over the remainder of the vesting term. Generally, directors and officers have 3-year vesting schedules and all other employees have 4-year vesting schedules. Additionally, in the event of a change in control or the occurrence of a corporate transaction, the Company’s Board of Directors has the authority to elect that all unvested options shall vest and become exercisable immediately prior to the event or closing of the transaction. All options outstanding as of March 31, 2016 had contractual lives of ten years. Under the 1998 Plan, 2,500,000 shares were authorized for grant. As of March 31, 2016 , there were 177,000 options outstanding under the 1998 Plan, which includes the cliff vesting and 3 or 4-year vesting options discussed above. As of March 31, 2016 , there were 712,992 options outstanding under the 2007 Plan. As of March 31, 2016 , the 2007 Plan had 893,698 authorized unissued options, while there were no options remaining that could be granted under the 1998 Plan. A summary of the stock option activity under the Company’s plans for the three months ended March 31, 2016 is as follows: Number of shares Weighted average exercise price Options outstanding at beginning of quarter 1,028,935 $6.03 Granted 157,200 11.97 Less: Exercised (69,621) 4.21 Repurchased (225,542) 4.37 Canceled or Expired (980) 8.51 Options outstanding at end of quarter 889,992 7.64 Options exercisable at end of quarter 550,097 $5.64 As of March 31, 2016 , the total remaining unrecognized compensation cost related to non-vested stock options, net of forfeitures, was approximately $340 , which will be recognized over a weighted average period of 2.57 years. Stock Option Repurchase: From March 11, 2016 to March 17, 2016, the Company offered to repurchase eligible vested options to purchase shares under the 1998 Plan and the 2007 Plan from employees. The Company repurchased delivered options at a repurchase price equal to the difference between the closing market price on the date of the employee’s communication of accepting the repurchase offer and the exercise price of such employee’s delivered options, subject to applicable withholding taxes and charges. The Company repurchased 225,542 stock options from employees at an average purchase price of $7.77 . Employee Stock Purchase Plan The Company issues shares to employees under the Company's 2014 Employee Stock Purchase Plan (the "ESPP"). The ESPP was approved by the Company’s shareholders on December 12, 2014. As of March 31, 2016 , 485,033 of the originally approved 500,000 shares were available for offerings under the ESPP. Offering periods under the ESPP commence on each Jan 1 and July 1, and continue for a duration of six months. The ESPP is available to all employees who do not own, or are deemed to own, shares of stock making up an excess of 5% of the combined voting power of the Company, its parent or subsidiary. During each offering period, each eligible employee may purchase shares under the ESPP after authorizing payroll deductions. Under the ESPP, each employee may purchase up to the lesser of 2,500 shares or $25 of fair market value (based on the established purchase price) of the Company's stock for each offering period. Unless the employee has previously withdrawn from the offering, his or her accumulated payroll deductions will be used to purchase common stock on the last business day of the period at a price equal to 85% (or a 15% discount) of the fair market value of the common stock on the first or last day of the offering period, whichever is lower. Share-based compensation expense has been recorded as follows: Three months ended March 31, 2016 2015 Cost of goods sold $ 4 $ 5 Sales and marketing 14 40 Research and product development 27 33 General and administrative 103 160 $ 148 $ 238 |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity The following table summarizes the change in shareholders’ equity during the three months ended March 31, 2016 and 2015 , respectively: Three months ended March 31, 2016 2015 Balance at the beginning of the period $ 82,569 $ 76,016 Exercise of stock options 293 20 Stock repurchased (404 ) — Options repurchased (1,752 ) — Proceeds from stock purchase plan 25 — Dividends (459 ) (319 ) Share-based compensation - options 143 238 Share-based compensation - ESPP 5 — Tax benefit - stock option exercises 563 7 Unrealized gain or loss on investments, net of tax 121 55 Foreign currency translation adjustment 33 (180 ) Net Income during the period 1,368 1,272 Balance at end of the period $ 82,505 $ 77,109 On February 25, 2016 , the Company announced a quarterly cash dividend of $0.05 per share to be paid on March 18, 2016 to shareholders of record as of March 7, 2016 . |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 and December 31, 2015 : Level 1 Level 2 Level 3 Total March 31, 2016 Corporate bonds and notes $ — $ 19,506 $ — $ 19,506 Municipal bonds — 6,731 — 6,731 Total $ — $ 26,237 $ — $ 26,237 Level 1 Level 2 Level 3 Total December 31, 2015 Corporate bonds and notes $ — $ 20,744 $ — $ 20,744 Municipal bonds — 5,621 — 5,621 Total $ — $ 26,365 $ — $ 26,365 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company's forecasted effective tax rate at March 31, 2016 is 35.2% , a 0.6% decrease from the 35.8% effective tax rate recorded at December 31, 2015 . The forecasted effective tax rate of 35.2% 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 35.5% . 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, 2016 . After discrete tax benefit of $93 , the effective tax rate for the quarter ended March 31, 2016 is 31.3% . The discrete tax benefit is primarily attributable to tax benefit related to stock-based compensation. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Event [Line Items] | |
Subsequent Events [Text Block] | Subsequent Events The Company evaluated its consolidated financial statements as of and for the three months ended March 31, 2016 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. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table sets forth the computation of basic and diluted earnings per common share: Three months ended March 31, 2016 2015 Numerator: Net income $ 1,368 $ 1,272 Denominator: Basic weighted average shares outstanding 9,196,522 9,100,107 Dilutive common stock equivalents using treasury stock method 316,918 408,372 Diluted weighted average shares outstanding 9,513,440 9,508,479 Basic earnings per common share $ 0.15 $ 0.14 Diluted earnings per common share $ 0.14 $ 0.13 Weighted average options outstanding 1,000,571 1,037,137 Anti-dilutive options not included in the computations 289,623 268,709 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 and December 31, 2015 were as follows: Amortized cost Gross unrealized holding gains Gross unrealized holding losses Estimated fair value March 31, 2016 Available-for-sale securities: Corporate bonds and notes $ 19,422 $ 136 $ (52 ) $ 19,506 Municipal bonds 6,691 41 (1 ) 6,731 Total available-for-sale securities $ 26,113 $ 177 $ (53 ) $ 26,237 Amortized cost Gross unrealized holding gains Gross unrealized holding losses Estimated fair value December 31, 2015 Available-for-sale securities: Corporate bonds and notes $ 20,827 $ 50 $ (133 ) $ 20,744 Municipal bonds 5,608 18 (5 ) 5,621 Total available-for-sale securities $ 26,435 $ 68 $ (138 ) $ 26,365 Maturities of marketable securities classified as available-for-sale securities were as follows at March 31, 2016 : Amortized cost Estimated fair value March 31, 2016 Due within one year $ 5,881 $ 5,890 Due after one year through five years 19,247 19,365 Due after five years through ten years 985 982 Total available-for-sale securities $ 26,113 $ 26,237 |
Available-for-sale Securities | The available-for-sale marketable securities in a gross unrealized loss position as of March 31, 2016 are summarized as follows: Less than 12 months More than 12 months Total (In thousands) Estimated fair value Gross unrealized holding losses Estimated fair value Gross unrealized holding losses Estimated fair value Gross unrealized holding losses As of March 31, 2016 Corporate bonds and notes $ 3,416 $ (38 ) $ 1,644 $ (14 ) $ 5,060 $ (52 ) Municipal bonds — — 200 (1 ) 200 (1 ) $ 3,416 $ (38 ) $ 1,844 $ (15 ) $ 5,260 $ (53 ) |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible Assets Disclosure [Text Block] | Intangible Assets Intangible assets as of March 31, 2016 and December 31, 2015 consisted of the following: Estimated useful lives March 31, 2016 December 31, 2015 Tradename 7 years $ 555 $ 555 Patents and technological know-how 10 years 5,869 5,850 Proprietary software 3 to 15 years 4,341 4,341 Other 5 years 324 324 11,089 11,070 Accumulated amortization (4,721 ) (4,432 ) $ 6,368 $ 6,638 The amortization of intangible assets for the three months ended March 31, 2016 and March 31, 2015 was as follows: Three months ended March 31, 2016 2015 Amortization of intangible assets $ 289 $ 315 The estimated future amortization expense of intangible assets is as follows: Years ending December 31, 2016 (remainder) $ 831 2017 925 2018 851 2019 778 2020 600 Thereafter 2,383 $ 6,368 |
Schedule of Intangible Assets | Intangible assets as of March 31, 2016 and December 31, 2015 consisted of the following: Estimated useful lives March 31, 2016 December 31, 2015 Tradename 7 years $ 555 $ 555 Patents and technological know-how 10 years 5,869 5,850 Proprietary software 3 to 15 years 4,341 4,341 Other 5 years 324 324 11,089 11,070 Accumulated amortization (4,721 ) (4,432 ) $ 6,368 $ 6,638 |
Schedule of Estimated Future Amortization Expense of Intangible Assets | The estimated future amortization expense of intangible assets is as follows: Years ending December 31, 2016 (remainder) $ 831 2017 925 2018 851 2019 778 2020 600 Thereafter 2,383 $ 6,368 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory, net of reserves | Inventories, net of reserves, as of March 31, 2016 and December 31, 2015 consisted of the following: March 31, 2016 December 31, 2015 Current: Raw materials $ 3,404 $ 2,735 Finished goods 11,066 10,712 $ 14,470 $ 13,447 Long-term: Raw materials $ 438 $ 375 Finished goods 1,583 1,643 $ 2,021 $ 2,018 |
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, 2016 and 2015 , respectively. Three months ended March 31, 2016 2015 Net loss (gain) on valuation of inventory and write-off of obsolete inventory $ 119 $ 47 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Share-based compensation expense has been recorded as follows: Three months ended March 31, 2016 2015 Cost of goods sold $ 4 $ 5 Sales and marketing 14 40 Research and product development 27 33 General and administrative 103 160 $ 148 $ 238 A summary of the stock option activity under the Company’s plans for the three months ended March 31, 2016 is as follows: Number of shares Weighted average exercise price Options outstanding at beginning of quarter 1,028,935 $6.03 Granted 157,200 11.97 Less: Exercised (69,621) 4.21 Repurchased (225,542) 4.37 Canceled or Expired (980) 8.51 Options outstanding at end of quarter 889,992 7.64 Options exercisable at end of quarter 550,097 $5.64 |
Share-based Compensation Stock
Share-based Compensation Stock Option Rollforward (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Share-based compensation expense has been recorded as follows: Three months ended March 31, 2016 2015 Cost of goods sold $ 4 $ 5 Sales and marketing 14 40 Research and product development 27 33 General and administrative 103 160 $ 148 $ 238 A summary of the stock option activity under the Company’s plans for the three months ended March 31, 2016 is as follows: Number of shares Weighted average exercise price Options outstanding at beginning of quarter 1,028,935 $6.03 Granted 157,200 11.97 Less: Exercised (69,621) 4.21 Repurchased (225,542) 4.37 Canceled or Expired (980) 8.51 Options outstanding at end of quarter 889,992 7.64 Options exercisable at end of quarter 550,097 $5.64 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Shareholders' Equity | The following table summarizes the change in shareholders’ equity during the three months ended March 31, 2016 and 2015 , respectively: Three months ended March 31, 2016 2015 Balance at the beginning of the period $ 82,569 $ 76,016 Exercise of stock options 293 20 Stock repurchased (404 ) — Options repurchased (1,752 ) — Proceeds from stock purchase plan 25 — Dividends (459 ) (319 ) Share-based compensation - options 143 238 Share-based compensation - ESPP 5 — Tax benefit - stock option exercises 563 7 Unrealized gain or loss on investments, net of tax 121 55 Foreign currency translation adjustment 33 (180 ) Net Income during the period 1,368 1,272 Balance at end of the period $ 82,505 $ 77,109 On February 25, 2016 , the Company announced a quarterly cash dividend of $0.05 per share to be paid on March 18, 2016 to shareholders of record as of March 7, 2016 . |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 and December 31, 2015 : Level 1 Level 2 Level 3 Total March 31, 2016 Corporate bonds and notes $ — $ 19,506 $ — $ 19,506 Municipal bonds — 6,731 — 6,731 Total $ — $ 26,237 $ — $ 26,237 Level 1 Level 2 Level 3 Total December 31, 2015 Corporate bonds and notes $ — $ 20,744 $ — $ 20,744 Municipal bonds — 5,621 — 5,621 Total $ — $ 26,365 $ — $ 26,365 |
Marketable Securities (Details)
Marketable Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | $ 26,113 | $ 26,435 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 177 | 68 |
Gross unrealized holding losses | (53) | (138) |
Estimated fair value | 26,237 | 26,365 |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 19,422 | 20,827 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 136 | 50 |
Gross unrealized holding losses | (52) | (133) |
Estimated fair value | 19,506 | 20,744 |
Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 6,691 | 5,608 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 41 | 18 |
Gross unrealized holding losses | (1) | (5) |
Estimated fair value | $ 6,731 | $ 5,621 |
Marketable Securities - Availab
Marketable Securities - Available-for-sale Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | $ 177 | $ 68 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (53) | (138) |
Due within one year, Amortized Cost | 5,881 | |
Due within one year, Estimated fair value | 5,890 | |
Due after one year through five years, Amortized Cost | 19,247 | |
Due after one year through five years, Estimated fair value | 19,365 | |
Due after five years through ten years, Amortized Cost | 985 | |
Due after five years through ten years, Estimated fair value | 982 | |
Total available-for-sale securities, Amortized Cost | 26,113 | 26,435 |
Total available-for-sale securities, Estimated fair value | 26,237 | 26,365 |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 136 | 50 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (52) | (133) |
Total available-for-sale securities, Amortized Cost | 19,422 | 20,827 |
Total available-for-sale securities, Estimated fair value | 19,506 | 20,744 |
Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 41 | 18 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (1) | (5) |
Total available-for-sale securities, Amortized Cost | 6,691 | 5,608 |
Total available-for-sale securities, Estimated fair value | $ 6,731 | $ 5,621 |
Business Combination, Goodwill
Business Combination, Goodwill and Intangibles - Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Total finite and indefinite-lived intangible assets, gross | $ 11,089 | $ 11,070 | |
Accumulated amortization | (4,721) | (4,432) | |
Intangible assets, net (excluding goodwill) | 6,368 | 6,638 | |
Amortization of Intangible Assets | $ 289 | $ 315 | |
Tradename | |||
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Finite-lived intangible assets, useful life (in years) | 7 years | ||
Finite-lived intangible assets, gross | $ 555 | 555 | |
Patents and technological know-how | |||
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Finite-lived intangible assets, gross | 5,869 | 5,850 | |
Proprietary Software [Member] | |||
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Finite-lived intangible assets, gross | $ 4,341 | 4,341 | |
Other | |||
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Finite-lived intangible assets, useful life (in years) | 5 years | ||
Finite-lived intangible assets, gross | $ 324 | $ 324 | |
Minimum [Member] | Computer Software, Intangible Asset [Member] | |||
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Finite-lived intangible assets, useful life (in years) | 3 years | ||
Minimum [Member] | Tradename | |||
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Finite-lived intangible assets, useful life (in years) | 5 years | ||
Maximum [Member] | Computer Software, Intangible Asset [Member] | |||
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Finite-lived intangible assets, useful life (in years) | 15 years |
Intangible Assets Finite-Lived
Intangible Assets Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |
2016 (remainder) | $ 831 |
2,017 | 925 |
2,018 | 851 |
2,019 | 778 |
2,020 | 600 |
Thereafter | 2,383 |
Finite-Lived Intangible Assets, Net | $ 6,368 |
Computer Software, Intangible Asset [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, useful life (in years) | 3 years |
Computer Software, Intangible Asset [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, useful life (in years) | 15 years |
Tradename | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, useful life (in years) | 7 years |
Tradename | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, useful life (in years) | 5 years |
Other Intangible Assets [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, useful life (in years) | 3 years |
Other | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, useful life (in years) | 5 years |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Inventory [Line Items] | |||
Distributor channel inventories | $ 1,445 | $ 1,628 | |
Losses incurred on valuation of inventory and write-off of obsolete inventory | 119 | $ 47 | |
Current: | |||
Raw materials | 3,404 | 2,735 | |
Finished goods | 11,066 | 10,712 | |
Inventoryincludingdistributorchannelinventories,net | 14,470 | 13,447 | |
Long-term: | |||
Raw materials | 438 | 375 | |
Finished Goods | 1,583 | 1,643 | |
Inventory, Noncurrent | $ 2,021 | $ 2,018 |
Share-Based Payments (Details)
Share-Based Payments (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 148,000 | $ 238,000 |
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 | $ 340 | |
Outstanding, weighted average remaining contractual term (in years) | 2 years 6 months 25 days |
Share-based Compensation Employ
Share-based Compensation Employee Stock Option Plans (Details) - $ / shares | 3 Months Ended | 6 Months Ended | 24 Months Ended | 30 Months Ended | ||
Mar. 31, 2016 | Jun. 30, 2005 | Dec. 31, 1999 | Jun. 30, 2002 | Dec. 31, 2015 | Dec. 12, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 157,200 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | (69,621) | |||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 4.21 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Forfeitures and Expirations | (980) | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 889,992 | 1,028,935 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 550,097 | |||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 11.97 | |||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 7.77 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Other Increases (Decreases) in Period | 225,542 | |||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Other Share Increase (Decrease) in Period, Weighted Average Exercise Price | $ 0 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | 8.51 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | 7.64 | $ 6.03 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 5.64 | |||||
Equity Incentive Plan, 2007 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 2,000,000 | |||||
Share based Compensation Arrangement by Share based Payment Award, Number of Shares Authorized and Unissued | 893,698 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 712,992 | |||||
Incentive Plan, 1998 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 2,500,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Accelerated Vesting, Number | 300,494 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 9 years 9 months 18 days | 6 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 1,066,000 | 1,248,250 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 177,000 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 26, 2016 | Mar. 31, 2016 | Mar. 31, 2015 |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Common Stock, Dividends, Per Share, Declared | $ 0.05 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance at the beginning of the period | $ 82,569 | $ 76,016 | |
Exercise of stock options | 293 | 20 | |
Stock Repurchased and Retired During Period, Value | (404) | 0 | |
Stock Options Repurchased During Period, Value | (1,752) | 0 | |
Proceeds from stock purchase plan | 25 | 0 | |
Dividends | (459) | (319) | |
Share-based compensation - options | 143 | 238 | |
Share-based compensation - ESPP | 5 | 0 | |
Tax benefit - stock option exercises | 563 | 7 | |
Unrealized gain or loss on investments, net of tax | 121 | 55 | |
Foreign currency translation adjustment | 33 | (180) | |
Net Income during the period | 1,368 | 1,272 | |
Balance at end of the period | $ 82,505 | $ 77,109 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Investments, Fair Value Disclosure | $ 26,237 | $ 26,365 |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments, Fair Value Disclosure | 19,506 | 20,744 |
Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments, Fair Value Disclosure | 6,731 | 5,621 |
Fair Value, Inputs, Level 1 [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments, Fair Value Disclosure | 26,237 | 26,365 |
Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments, Fair Value Disclosure | 19,506 | 20,744 |
Fair Value, Inputs, Level 2 [Member] | Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments, Fair Value Disclosure | 6,731 | 5,621 |
Fair Value, Inputs, Level 3 [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments, Fair Value Disclosure | $ 0 | $ 0 |
Income Taxes Income Tax Rates (
Income Taxes Income Tax Rates (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Income Tax Rate Disclosures [Abstract] | ||
Effective tax rate, forecasted | 35.20% | |
Effective Income Tax Rate, Continuing Operations, Forecasted Increase (Decrease) in Rate | 0.60% | |
Effective Income Tax Rate, Continuing Operations | 35.80% | |
Effective tax rate, including loss jurisdictions | 35.50% | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 93 | |
Effective Tax Rate, After Discreet Benefits | 31.30% |