Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Jun. 15, 2018 | |
Document Information [Line Items] | ||
Entity Registrant Name | CLEARONE INC | |
Entity Central Index Key | 840,715 | |
Trading Symbol | clro | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 8,301,273 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 5,577 | $ 5,571 |
Marketable securities | 3,132 | 2,689 |
Receivables, net of allowance for doubtful accounts of $491 and $472, respectively | 6,247 | 7,794 |
Inventories, net | 14,622 | 14,415 |
Distributor channel inventories | 1,555 | |
Prepaid expenses and other assets | 1,963 | 1,862 |
Total current assets | 31,541 | 33,886 |
Long-term marketable securities | 7,416 | 10,349 |
Long-term inventories, net | 8,565 | 8,708 |
Property and equipment, net | 1,481 | 1,549 |
Intangibles, net | 7,640 | 6,543 |
Deferred income taxes | 7,227 | 6,531 |
Other assets | 316 | 311 |
Total assets | 64,186 | 67,877 |
Current liabilities: | ||
Accounts payable | 4,295 | 4,122 |
Accrued liabilities | 1,975 | 1,843 |
Deferred product revenue | 282 | 4,635 |
Total current liabilities | 6,552 | 10,600 |
Deferred rent | 81 | 103 |
Other long-term liabilities | 679 | 607 |
Total liabilities | 7,312 | 11,310 |
Shareholders' equity: | ||
Common stock, par value $0.001, 50,000,000 shares authorized, 8,301,273 and 8,319,022 shares issued and outstanding | 8 | 8 |
Additional paid-in capital | 47,612 | 47,464 |
Accumulated other comprehensive loss | (113) | (65) |
Retained earnings | 9,367 | 9,160 |
Total shareholders' equity | 56,874 | 56,567 |
Total liabilities and shareholders' equity | $ 64,186 | $ 67,877 |
Unaudited Condensed Consolidat3
Unaudited Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Allowance for doubtful accounts | $ 491 | $ 472 |
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, shares issued (in shares) | 8,301,273 | 8,319,022 |
Common stock, shares outstanding (in shares) | 8,301,273 | 8,319,022 |
Unaudited Condensed Consolidat4
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue | $ 7,289 | $ 11,678 |
Cost of goods sold | 3,190 | 5,000 |
Gross profit | 4,099 | 6,678 |
Operating expenses: | ||
Sales and marketing | 2,868 | 2,741 |
Research and product development | 2,056 | 2,357 |
General and administrative | 1,617 | 2,106 |
Total operating expenses | 6,541 | 7,204 |
Operating loss | (2,442) | (526) |
Other income, net | 24 | 102 |
Loss before income taxes | (2,418) | (424) |
Provision for (benefit from) income taxes | (572) | 44 |
Net loss | $ (1,846) | $ (468) |
Basic weighted average shares outstanding (in shares) | 8,307,125 | 8,768,112 |
Diluted weighted average shares outstanding (in shares) | 8,307,125 | 8,768,112 |
Basic loss per share (in dollars per share) | $ (0.22) | $ (0.05) |
Diluted loss per share (in dollars per share) | $ (0.22) | $ (0.05) |
Comprehensive loss: | ||
Net loss | $ (1,846) | $ (468) |
Unrealized gain (loss) on available-for-sale securities, net of tax | (70) | 38 |
Change in foreign currency translation adjustment | 22 | 12 |
Comprehensive loss | $ (1,894) | $ (418) |
Unaudited Condensed Consolidat5
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net loss | $ (1,846) | $ (468) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization expense | 380 | 402 |
Amortization of deferred rent | (17) | |
Stock-based compensation expense | 137 | 171 |
Provision for (recoveries of) doubtful accounts, net | 18 | (2) |
Change of inventory to net realizable value | 255 | (34) |
Tax benefit from exercise of stock options | (2) | |
Deferred income taxes | (696) | 25 |
Changes in operating assets and liabilities: | ||
Receivables | 1,545 | 169 |
Inventories | (319) | (2,766) |
Prepaid expenses and other assets | (108) | (136) |
Accounts payable | 172 | 1,361 |
Accrued liabilities | 110 | 145 |
Income taxes payable | 3 | (215) |
Deferred product revenue | (22) | 4 |
Other long-term liabilities | 72 | |
Net cash used in operating activities | (299) | (1,363) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (62) | (181) |
Purchase of intangibles | (62) | (56) |
Capitalized patent defense costs | (1,283) | |
Proceeds from maturities and sales of marketable securities | 3,304 | 1,906 |
Purchases of marketable securities | (884) | (2,437) |
Net cash provided by (used in) investing activities | 1,013 | (768) |
Cash flows from financing activities: | ||
Net proceeds from equity-based compensation programs | 11 | 28 |
Dividend payments | (583) | (439) |
Repurchase and cancellation of stock | (147) | (928) |
Net cash used in financing activities | (719) | (1,339) |
Effect of exchange rate changes on cash and cash equivalents | 11 | 9 |
Net increase (decrease) in cash and cash equivalents | 6 | (3,461) |
Cash and cash equivalents at the beginning of the period | 5,571 | 12,100 |
Cash and cash equivalents at the end of the period | 5,577 | 8,639 |
Cash paid for income taxes | $ 62 | $ 1 |
Note 1 - Business Description,
Note 1 - Business Description, Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | 1. Business Description: ClearOne, Inc., together with its subsidiaries (collectively, “ClearOne” or the “Company”), is a global market leader enabling conferencing, collaboration, and network streaming solutions. The performance and simplicity of our advanced, comprehensive solutions offer unprecedented levels of functionality, reliability and scalability. Basis of Presentation: The fiscal year for ClearOne is the 12 December 31. These accompanying interim unaudited condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and are not March 31, 2018 December 31, 2017, three March 31, 2018 2017, three March 31, 2018 2017. three March 31, 2018 2017 not 10 December 31, 2017 Significant Accounting Policies: The significant accounting policies were described in Note 1 10 December 31, 2017. no three March 31, 2018 Adoption of New Revenue Standard: January 1, 2018, No. 2014 09 606 2014 09” No. 2015 14 606 2015 14” No. 2016 08 606 2016 08” No. 2016 10 606 2016 10” No. 2016 12 606 2016 12” No. 2016 20 606, 2016 20” Change in Accounting Policy: January 1, 2018, $2,783, $4,338 $1,555 not not Our accounting policy before this change is described below. Revenue from product sales to distributors was not not Now, after the change in the accounting policy, substantially all of the Company’s revenue is recognized following the transfer of control of the products to the customer, which typically occurs upon shipment or delivery depending on the terms of the underlying contracts. During the quarter ended March 30, 2018, $852 Revenue Recognition Policy: five 1 2 3 4 5 Sales agreements with customers are renewable periodically and contain terms and conditions with respect to payment, delivery, warranty and supply, but typically do not In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which the Company expects to be entitled. Sales to distributors, are typically made pursuant to agreements that provide return rights with respect to discontinued or slow-moving products, referred to as stock rotation. Sales to distributors can also be subject to price adjustment on certain products, primarily for distributors with ship and credit rights. Although payment terms vary, most distributor agreements require payment within 45 The Company recognizes revenue when it satisfies a performance obligation. The Company recognizes revenue from sales agreements upon transferring control of a product to the customer. This typically occurs when products are shipped or delivered, depending on the delivery terms, or when products that are consigned at customer locations are sold to dealers or end users. Revenue recognized during the quarter ended March 31, 2018 $7,109 $180. Frequently, the Company receives orders with multiple delivery dates that may 45 30 one not The Company has elected to record freight and handling costs associated with outbound freight after control over a product has transferred to a customer as a fulfillment cost and include it in cost of revenues. Taxes assessed by government authorities on revenue-producing transactions, including value-added and excise taxes, are presented on a net basis (excluded from revenues) in the Consolidated Statements of Operations and Comprehensive Income. Recent Accounting Pronouncements: In February 2016, No. 2016 02, 842 12 December 15, 2018 December 15, 2018. not In August 2016, No. 2016 15, eight 2016 15 January 1, 2018. 2016 15 no In May 2017, No. 2017 09, 718 1 2 718, January 1, 2018. 2017 09 not |
Note 2 - Revenue Information
Note 2 - Revenue Information | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 2. The following table disaggregates the Company’s revenue into primary product groups: Three months ended March 31, 2018 Professional audio products $ 4,933 Unified Communications end points 1,036 Video products 1,320 $ 7,289 The following table disaggregates the Company’s revenue into major regions: Three months ended March 31, 2018 North and South America $ 4,346 Asia (including Middle East) and Australia 2,038 Europe and Africa 906 $ 7,289 |
Note 3 - Earnings (Loss) Per Sh
Note 3 - Earnings (Loss) Per Share | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 3 . Earnings (Loss) Per Share Earnings (loss) per common share is computed based on the weighted-average number of common shares outstanding and, when appropriate, dilutive potential common stock outstanding during the period. Stock options are considered to be potential common stock. The computation of diluted earnings (loss) per share does not Basic earnings (loss) per common share is the amount of net earnings (loss) for the period available to each weighted-average share of common stock outstanding during the reporting period. Diluted earnings (loss) per common share is the amount of earnings (loss) for the period available to each weighted-average share of common stock outstanding during the reporting period and to each share of potential common stock outstanding during the period, unless inclusion of potential common stock would have an anti-dilutive effect. The following table sets forth the computation of basic and diluted earnings (loss) per common share: Three months ended March 31, 2018 2017 Numerator: Net loss $ (1,846 ) $ (468 ) Denominator: Basic weighted average shares outstanding 8,307,125 8,768,112 Dilutive common stock equivalents using treasury stock method — — Diluted weighted average shares outstanding 8,307,125 8,768,112 Basic loss per common share $ (0.22 ) $ (0.05 ) Diluted loss per common share $ (0.22 ) $ (0.05 ) Weighted average options outstanding 748,078 847,731 Anti-dilutive options not included in the computations 748,078 847,731 |
Note 4 - Marketable Securities
Note 4 - Marketable Securities | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | 4 . 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 securities at March 31, 2018 December 31, 2017 Amortized cost Gross unrealized holding gains Gross unrealized holding losses Estimated fair value March 31, 2018 Available-for-sale securities: Corporate bonds and notes $ 6,040 $ 5 $ (73 ) $ 5,972 Municipal bonds 4,613 0 (37 ) 4,576 Total available-for-sale securities $ 10,653 $ 5 $ (110 ) $ 10,548 Amortized cost Gross unrealized holding gains Gross unrealized holding losses Estimated fair value December 31, 201 7 Available-for-sale securities: Corporate bonds and notes $ 8,458 $ 19 $ (49 ) $ 8,428 Municipal bonds 4,637 1 (28 ) 4,610 Total available-for-sale securities $ 13,095 $ 20 $ (77 ) $ 13,038 Maturities of marketable securities classified as available-for-sale securities were as follows at March 31, 2018: Amortized cost Estimated fair value March 31, 2018 Due within one year $ 3,145 $ 3,132 Due after one year through five years 7,508 7,416 Total available-for-sale securities $ 10,653 $ 10,548 Debt securities in an unrealized loss position as of March 31, 2018 not not not no 12 12 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, 2018 Corporate bonds and notes $ 3,106 $ (30 ) $ 2,282 $ (43 ) $ 5,388 $ (73 ) Municipal bonds 3,197 (28 ) 670 (9 ) 3,867 (37 ) Total $ 6,303 $ (58 ) $ 2,952 $ (52 ) $ 9,255 $ (110 ) |
Note 5 - Intangible Assets
Note 5 - Intangible Assets | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | 5 . Intangible Assets Intangible assets as of March 31, 2018 December 31, 2017 Estimated useful lives (years) March 31, 2018 December 31, 201 7 Tradename 5 to 7 $ 555 $ 555 Patents and technological know-how 10 9,923 8,578 Proprietary software 3 to 15 2,981 2,981 Other 3 to 5 323 323 Total intangible assets 13,782 12,437 Accumulated amortization (6,142 ) (5,894 ) Total intangible assets, net $ 7,640 $ 6,543 The amortization of intangible assets for the three March 31, 2018 2017 Three months ended March 31, 201 8 201 7 Amortization of intangible assets $ 248 $ 238 The estimated future amortization expense of intangible assets is as follows: Years ending December 31, Amount 2018 (Remainder) $ 750 2019 925 2020 746 2021 746 2022 746 Thereafter 3,727 Total 7,640 |
Note 6 - Inventories
Note 6 - Inventories | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 6. Inventories, net of reserves, as of March 31, 2018 December 31, 2017 As of March 31, 2018 December 31, 201 7 Current: Raw materials $ 2,204 $ 197 Finished goods 12,418 14,218 $ 14,622 $ 14,415 Long-term: Raw materials $ 2,453 $ 2,682 Finished goods 6,112 6,026 $ 8,565 $ 8,708 Long-term inventory represents inventory held in excess of our current (next 12 no no Current finished goods did not $1,555 December 31, 2017. not Net loss incurred on valuation of inventory at lower of cost or market value and write-off of obsolete inventory during the three March 31, 2018 $255. three March 31, 2017 $34. |
Note 7 - Share-based Compensati
Note 7 - Share-based Compensation | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Shareholders' Equity and Share-based Payments [Text Block] | 7 . Share-based Compensation Employee Stock Option Plans The Company’s share-based incentive plans offering stock options are offered under the Company’s 2007 “2007 December 12, 2015. 2007 2,000,000 may may March 31, 2018, 744,936 2007 March 31, 2018, 2007 749,158 A summary of the stock option activity under the Company’s plans for the nine March 31, 2018 Number of shares Weighted average exercise price Options outstanding at beginning of year 764,430 $ 8.78 Granted — — Less: Exercised — — Forfeited prior to vesting (18,012 ) 10.84 Canceled or expired (1,482 ) 11.00 Options outstanding at March 31, 2018 744,936 8.72 Options exercisable at end of March 31, 2018 550,509 $ 8.02 As of March 31, 2018, $632, 1.63 Share-based compensation expense has been recorded as follows: Three months ended March 31, 201 8 201 7 Cost of goods sold $ 5 $ 8 Sales and marketing 10 14 Research and product development 30 38 General and administrative 92 111 $ 137 $ 171 |
Note 8 - Shareholders' Equity
Note 8 - Shareholders' Equity | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 8 . Shareholders’ Equity Stock Repurchase Program On March 9, 2016, $10,000 On March 1, 2017, $10,000 twelve During the three March 31, 2018, March 2016 March 2017: Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Jan 2018 8,652 $ 8.57 8,652 February 2018 7,019 8.26 7,019 March 2018 1,878 8.02 1,878 Total 17,549 8.39 17,549 Upon expiry of this repurchase program in March 2018, not Cash Dividends On February 21, 2018, $0.07 March 21, 2018 March 7, 2018 June 13, 2018, |
Note 9 - Fair Value Measurement
Note 9 - Fair Value Measurements | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 9. 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 Level 1 Level 2 not not Level 3 The substantial majority of the Company’s financial instruments are valued using observable inputs. The following table sets forth the fair value of the financial instruments re-measured by the Company as of March 31, 2018 December 31, 2017: Level 1 Level 2 Level 3 Total March 31, 2018 Corporate bonds and notes $ - $ 5,972 $ - $ 5,972 Municipal bonds - 4,576 - 4,576 Total $ - $ 10,548 $ - $ 10,548 Level 1 Level 2 Level 3 Total December 31, 2017 Corporate bonds and notes $ - $ 8,428 $ - $ 8,428 Municipal bonds - 4,610 - 4,610 Total $ - $ 13,038 $ - $ 13,038 |
Note 10 - Income Taxes
Note 10 - Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 10. The Company’s forecasted effective tax benefit rate at March 31, 2018 27.0%, 16.2% 10.8% December 31, 2017. 16.2% 2017 27.0% no 26.0%. March 31, 2018. After a discrete tax expense of $62, March 31, 2018 23.7%. $62 |
Note 11 - Subsequent Events
Note 11 - Subsequent Events | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 11. On June 13, 2018, |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Significant Accounting Policies: The significant accounting policies were described in Note 1 10 December 31, 2017. no three March 31, 2018 Adoption of New Revenue Standard: January 1, 2018, No. 2014 09 606 2014 09” No. 2015 14 606 2015 14” No. 2016 08 606 2016 08” No. 2016 10 606 2016 10” No. 2016 12 606 2016 12” No. 2016 20 606, 2016 20” Change in Accounting Policy: January 1, 2018, $2,783, $4,338 $1,555 not not Our accounting policy before this change is described below. Revenue from product sales to distributors was not not Now, after the change in the accounting policy, substantially all of the Company’s revenue is recognized following the transfer of control of the products to the customer, which typically occurs upon shipment or delivery depending on the terms of the underlying contracts. During the quarter ended March 30, 2018, $852 Revenue Recognition Policy: five 1 2 3 4 5 Sales agreements with customers are renewable periodically and contain terms and conditions with respect to payment, delivery, warranty and supply, but typically do not In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which the Company expects to be entitled. Sales to distributors, are typically made pursuant to agreements that provide return rights with respect to discontinued or slow-moving products, referred to as stock rotation. Sales to distributors can also be subject to price adjustment on certain products, primarily for distributors with ship and credit rights. Although payment terms vary, most distributor agreements require payment within 45 The Company recognizes revenue when it satisfies a performance obligation. The Company recognizes revenue from sales agreements upon transferring control of a product to the customer. This typically occurs when products are shipped or delivered, depending on the delivery terms, or when products that are consigned at customer locations are sold to dealers or end users. Revenue recognized during the quarter ended March 31, 2018 $7,109 $180. Frequently, the Company receives orders with multiple delivery dates that may 45 30 one not The Company has elected to record freight and handling costs associated with outbound freight after control over a product has transferred to a customer as a fulfillment cost and include it in cost of revenues. Taxes assessed by government authorities on revenue-producing transactions, including value-added and excise taxes, are presented on a net basis (excluded from revenues) in the Consolidated Statements of Operations and Comprehensive Income. Recent Accounting Pronouncements: In February 2016, No. 2016 02, 842 12 December 15, 2018 December 15, 2018. not In August 2016, No. 2016 15, eight 2016 15 January 1, 2018. 2016 15 no In May 2017, No. 2017 09, 718 1 2 718, January 1, 2018. 2017 09 not |
Note 2 - Revenue Information (T
Note 2 - Revenue Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three months ended March 31, 2018 Professional audio products $ 4,933 Unified Communications end points 1,036 Video products 1,320 $ 7,289 Three months ended March 31, 2018 North and South America $ 4,346 Asia (including Middle East) and Australia 2,038 Europe and Africa 906 $ 7,289 |
Note 3 - Earnings (Loss) Per 19
Note 3 - Earnings (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three months ended March 31, 2018 2017 Numerator: Net loss $ (1,846 ) $ (468 ) Denominator: Basic weighted average shares outstanding 8,307,125 8,768,112 Dilutive common stock equivalents using treasury stock method — — Diluted weighted average shares outstanding 8,307,125 8,768,112 Basic loss per common share $ (0.22 ) $ (0.05 ) Diluted loss per common share $ (0.22 ) $ (0.05 ) Weighted average options outstanding 748,078 847,731 Anti-dilutive options not included in the computations 748,078 847,731 |
Note 4 - Marketable Securities
Note 4 - Marketable Securities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Notes Tables | |
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | Amortized cost Gross unrealized holding gains Gross unrealized holding losses Estimated fair value March 31, 2018 Available-for-sale securities: Corporate bonds and notes $ 6,040 $ 5 $ (73 ) $ 5,972 Municipal bonds 4,613 0 (37 ) 4,576 Total available-for-sale securities $ 10,653 $ 5 $ (110 ) $ 10,548 Amortized cost Gross unrealized holding gains Gross unrealized holding losses Estimated fair value December 31, 201 7 Available-for-sale securities: Corporate bonds and notes $ 8,458 $ 19 $ (49 ) $ 8,428 Municipal bonds 4,637 1 (28 ) 4,610 Total available-for-sale securities $ 13,095 $ 20 $ (77 ) $ 13,038 |
Available-for-sale Securities, Debt Maturities [Table Text Block] | Amortized cost Estimated fair value March 31, 2018 Due within one year $ 3,145 $ 3,132 Due after one year through five years 7,508 7,416 Total available-for-sale securities $ 10,653 $ 10,548 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Table Text Block] | 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, 2018 Corporate bonds and notes $ 3,106 $ (30 ) $ 2,282 $ (43 ) $ 5,388 $ (73 ) Municipal bonds 3,197 (28 ) 670 (9 ) 3,867 (37 ) Total $ 6,303 $ (58 ) $ 2,952 $ (52 ) $ 9,255 $ (110 ) |
Note 5 - Intangible Assets (Tab
Note 5 - Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Notes Tables | |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | Estimated useful lives (years) March 31, 2018 December 31, 201 7 Tradename 5 to 7 $ 555 $ 555 Patents and technological know-how 10 9,923 8,578 Proprietary software 3 to 15 2,981 2,981 Other 3 to 5 323 323 Total intangible assets 13,782 12,437 Accumulated amortization (6,142 ) (5,894 ) Total intangible assets, net $ 7,640 $ 6,543 |
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | Three months ended March 31, 201 8 201 7 Amortization of intangible assets $ 248 $ 238 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Years ending December 31, Amount 2018 (Remainder) $ 750 2019 925 2020 746 2021 746 2022 746 Thereafter 3,727 Total 7,640 |
Note 6 - Inventories (Tables)
Note 6 - Inventories (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Notes Tables | |
Schedule of Inventory Current and Noncurrent [Table Text Block] | As of March 31, 2018 December 31, 201 7 Current: Raw materials $ 2,204 $ 197 Finished goods 12,418 14,218 $ 14,622 $ 14,415 Long-term: Raw materials $ 2,453 $ 2,682 Finished goods 6,112 6,026 $ 8,565 $ 8,708 |
Note 7 - Share-based Compensa23
Note 7 - Share-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Notes Tables | |
Share-based Compensation, Stock Options, Activity [Table Text Block] | Number of shares Weighted average exercise price Options outstanding at beginning of year 764,430 $ 8.78 Granted — — Less: Exercised — — Forfeited prior to vesting (18,012 ) 10.84 Canceled or expired (1,482 ) 11.00 Options outstanding at March 31, 2018 744,936 8.72 Options exercisable at end of March 31, 2018 550,509 $ 8.02 |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block] | Three months ended March 31, 201 8 201 7 Cost of goods sold $ 5 $ 8 Sales and marketing 10 14 Research and product development 30 38 General and administrative 92 111 $ 137 $ 171 |
Note 8 - Shareholders' Equity (
Note 8 - Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Notes Tables | |
Class of Treasury Stock [Table Text Block] | Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Jan 2018 8,652 $ 8.57 8,652 February 2018 7,019 8.26 7,019 March 2018 1,878 8.02 1,878 Total 17,549 8.39 17,549 |
Note 9 - Fair Value Measureme25
Note 9 - Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Level 1 Level 2 Level 3 Total March 31, 2018 Corporate bonds and notes $ - $ 5,972 $ - $ 5,972 Municipal bonds - 4,576 - 4,576 Total $ - $ 10,548 $ - $ 10,548 Level 1 Level 2 Level 3 Total December 31, 2017 Corporate bonds and notes $ - $ 8,428 $ - $ 8,428 Municipal bonds - 4,610 - 4,610 Total $ - $ 13,038 $ - $ 13,038 |
Note 1 - Business Description26
Note 1 - Business Description, Basis of Presentation and Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Contract with Customer, Liability, Current | $ 282 | $ 4,635 | ||
Retail Related Inventory, Total | $ 1,555 | |||
Revenue from Contract with Customer, Including Assessed Tax | 7,289 | $ 11,678 | ||
Equipment Sales [Member] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 7,109 | |||
Software and Licenses [Member] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 180 | |||
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||
Contract with Customer, Liability, Current | $ (4,338) | |||
Retail Related Inventory, Total | (1,555) | |||
Revenue from Contract with Customer, Including Assessed Tax | $ (852) | |||
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 2,783 |
Note 2 - Revenue Information -
Note 2 - Revenue Information - Revenue by Product Group (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue from Contract with Customer, Including Assessed Tax | $ 7,289 | $ 11,678 |
Americas [Member] | ||
Revenue from Contract with Customer, Including Assessed Tax | 4,346 | |
Asia Middle East and Australia [Member] | ||
Revenue from Contract with Customer, Including Assessed Tax | 2,038 | |
Europe and Africa [Member] | ||
Revenue from Contract with Customer, Including Assessed Tax | 906 | |
Professional Audio Products [Member] | ||
Revenue from Contract with Customer, Including Assessed Tax | 4,933 | |
Unified Communications End Points [Member] | ||
Revenue from Contract with Customer, Including Assessed Tax | 1,036 | |
Video Products [Member] | ||
Revenue from Contract with Customer, Including Assessed Tax | $ 1,320 |
Note 3 - Earnings (Loss) Per 28
Note 3 - Earnings (Loss) Per Share - Computation of Basic and Diluted Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net loss | $ (1,846) | $ (468) |
Basic weighted average shares outstanding (in shares) | 8,307,125 | 8,768,112 |
Dilutive common stock equivalents using treasury stock method (in shares) | ||
Diluted weighted average shares outstanding (in shares) | 8,307,125 | 8,768,112 |
Basic loss per common share (in dollars per share) | $ (0.22) | $ (0.05) |
Diluted loss per common share (in dollars per share) | $ (0.22) | $ (0.05) |
Weighted average options outstanding (in shares) | 748,078 | 847,731 |
Anti-dilutive options not included in the computations (in shares) | 748,078 | 847,731 |
Note 4 - Marketable Securitie29
Note 4 - Marketable Securities - Available-for-sale Securities by Major Security Type (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Amortized cost | $ 10,653 | $ 13,095 |
Gross unrealized holding gains | 5 | 20 |
Gross unrealized holding losses | (110) | (77) |
Available-for-sale securities | 10,548 | 13,038 |
Corporate Debt Securities [Member] | ||
Amortized cost | 6,040 | 8,458 |
Gross unrealized holding gains | 5 | 19 |
Gross unrealized holding losses | (73) | (49) |
Available-for-sale securities | 5,972 | 8,428 |
US States and Political Subdivisions Debt Securities [Member] | ||
Amortized cost | 4,613 | 4,637 |
Gross unrealized holding gains | 0 | 1 |
Gross unrealized holding losses | (37) | (28) |
Available-for-sale securities | $ 4,576 | $ 4,610 |
Note 4 - Marketable Securitie30
Note 4 - Marketable Securities - Maturities of Available-for-sale Securities (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Due within one year, amortized cost | $ 3,145 |
Due within one year, estimated fair value | 3,132 |
Due after one year through five years, amortized cost | 7,508 |
Due after one year through five years, estimated fair value | 7,416 |
Total available-for-sale securities, amortized cost | 10,653 |
Total available-for-sale securities, estimated fair value | $ 10,548 |
Note 4 - Marketable Securitie31
Note 4 - Marketable Securities - Available-for-sale Marketable Securities in Gross Unrealized Loss Position (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Estimated fair value, less than 12 months | $ 6,303 |
Gross unrealized holding losses, less than 12 months | (58) |
Estimated fair value, more than 12 months | 2,952 |
Gross unrealized holding losses, more than 12 months | (52) |
Estimated fair value | 9,255 |
Gross unrealized holding losses | (110) |
Corporate Debt Securities [Member] | |
Estimated fair value, less than 12 months | 3,106 |
Gross unrealized holding losses, less than 12 months | (30) |
Estimated fair value, more than 12 months | 2,282 |
Gross unrealized holding losses, more than 12 months | (43) |
Estimated fair value | 5,388 |
Gross unrealized holding losses | (73) |
US States and Political Subdivisions Debt Securities [Member] | |
Estimated fair value, less than 12 months | 3,197 |
Gross unrealized holding losses, less than 12 months | (28) |
Estimated fair value, more than 12 months | 670 |
Gross unrealized holding losses, more than 12 months | (9) |
Estimated fair value | 3,867 |
Gross unrealized holding losses | $ (37) |
Note 5 - Intangible Assets - In
Note 5 - Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Intangible assets, gross | $ 13,782 | $ 12,437 |
Accumulated amortization | (6,142) | (5,894) |
Total intangible assets, net | 7,640 | 6,543 |
Trade Names [Member] | ||
Intangible assets, gross | $ 555 | 555 |
Patents and Technological Know-how [Member] | ||
Estimated useful lives (Year) | 10 years | |
Intangible assets, gross | $ 9,923 | 8,578 |
Proprietary Software [Member] | ||
Intangible assets, gross | 2,981 | 2,981 |
Other Intangible Assets [Member] | ||
Intangible assets, gross | $ 323 | $ 323 |
Minimum [Member] | Trade Names [Member] | ||
Estimated useful lives (Year) | 5 years | |
Minimum [Member] | Proprietary Software [Member] | ||
Estimated useful lives (Year) | 3 years | |
Minimum [Member] | Other Intangible Assets [Member] | ||
Estimated useful lives (Year) | 3 years | |
Maximum [Member] | Trade Names [Member] | ||
Estimated useful lives (Year) | 7 years | |
Maximum [Member] | Proprietary Software [Member] | ||
Estimated useful lives (Year) | 15 years | |
Maximum [Member] | Other Intangible Assets [Member] | ||
Estimated useful lives (Year) | 5 years |
Note 5 - Intangible Assets - Sc
Note 5 - Intangible Assets - Schedule of Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Amortization of intangible assets | $ 248 | $ 238 |
Note 5 - Intangible Assets - 34
Note 5 - Intangible Assets - Schedule of Estimated Future Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
2018 (Remainder) | $ 750 | |
2,019 | 925 | |
2,020 | 746 | |
2,021 | 746 | |
2,022 | 746 | |
Thereafter | 3,727 | |
Total | $ 7,640 | $ 6,543 |
Note 6 - Inventories (Details T
Note 6 - Inventories (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Distributor Channel Inventories | $ 1,555 | ||
Inventory Write-down | $ 255 | $ (34) |
Note 6 - Inventories - Inventor
Note 6 - Inventories - Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Raw materials | $ 2,204 | $ 197 |
Finished goods | 12,418 | 14,218 |
14,622 | 14,415 | |
Raw materials | 2,453 | 2,682 |
Finished goods | 6,112 | 6,026 |
$ 8,565 | $ 8,708 |
Note 7 - Share-based Compensa37
Note 7 - Share-based Compensation (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Dec. 12, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | 744,936 | 764,430 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 632 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 229 days | ||
The 2007 Equity Incentive Plan [Member] | |||
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, Options, Outstanding, Number, Ending Balance | 744,936 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares, Authorized and Unissued | 749,158 |
Note 7 - Share-based Compensa38
Note 7 - Share-based Compensation - Stock Option Activity (Details) | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Options outstanding at beginning of year (in shares) | shares | 764,430 |
Weighted average exercise price, options outstanding at beginning of year (in dollars per share) | $ / shares | $ 8.78 |
Number of shares, granted (in shares) | shares | |
Weighted average exercise price, granted (in dollars per share) | $ / shares | |
Number of shares, exercised (in shares) | shares | |
Weighted average exercise price, exercised (in dollars per share) | $ / shares | |
Number of shares, forfeited prior to vesting (in shares) | shares | (18,012) |
Weighted average exercise price, forfeited prior to vesting (in dollars per share) | $ / shares | $ 10.84 |
Number of shares, canceled or expired (in shares) | shares | (1,482) |
Weighted average exercise price, canceled or expired (in dollars per share) | $ / shares | $ 11 |
Options outstanding at March 31, 2018 (in shares) | shares | 744,936 |
Weighted average exercise price, options outstanding at March 31, 2018 (in dollars per share) | $ / shares | $ 8.72 |
Options exercisable at end of March 31, 2018 (in shares) | shares | 550,509 |
Weighted average exercise price, options exercisable at end of March 31, 2018 (in dollars per share) | $ / shares | $ 8.02 |
Note 7 - Share-based Compensa39
Note 7 - Share-based Compensation - Schedule of Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based compensation expense | $ 137 | $ 171 |
Cost of Sales [Member] | ||
Share-based compensation expense | 5 | 8 |
Selling and Marketing Expense [Member] | ||
Share-based compensation expense | 10 | 14 |
Research and Development Expense [Member] | ||
Share-based compensation expense | 30 | 38 |
General and Administrative Expense [Member] | ||
Share-based compensation expense | $ 92 | $ 111 |
Note 8 - Shareholders' Equity40
Note 8 - Shareholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Billions | Feb. 21, 2018 | Mar. 01, 2017 | Mar. 09, 2016 |
Stock Repurchase Program, Authorized Amount | $ 10 | ||
Stock Repurchase Program, Additional Authorized Amount | $ 10 | ||
Common Stock, Dividends, Per Share, Declared | $ 0.07 | ||
Dividends Payable, Date to be Paid | Mar. 21, 2018 | ||
Dividends Payable, Date of Record | Mar. 7, 2018 |
Note 8 - Shareholders' Equity -
Note 8 - Shareholders' Equity - Stock Repurchase Program (Details) - $ / shares | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2018 | Feb. 28, 2018 | Jan. 31, 2018 | Mar. 31, 2018 | |
Total number of shares purchased (in shares) | 1,878 | 7,019 | 8,652 | 17,549 |
Average price paid per share (in dollars per share) | $ 8.02 | $ 8.26 | $ 8.57 | $ 8.39 |
Publicly Announced Stock Repurchase Program [Member] | ||||
Total number of shares purchased (in shares) | 1,878 | 7,019 | 8,652 | 17,549 |
Note 9 - Fair Value Measureme42
Note 9 - Fair Value Measurements - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Available-for-sale securities | $ 10,548 | $ 13,038 |
Fair Value, Inputs, Level 1 [Member] | ||
Available-for-sale securities | ||
Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale securities | 10,548 | 13,038 |
Fair Value, Inputs, Level 3 [Member] | ||
Available-for-sale securities | ||
Corporate Debt Securities [Member] | ||
Available-for-sale securities | 5,972 | 8,428 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available-for-sale securities | ||
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale securities | 5,972 | 8,428 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Available-for-sale securities | ||
US States and Political Subdivisions Debt Securities [Member] | ||
Available-for-sale securities | 4,576 | 4,610 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available-for-sale securities | ||
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale securities | 4,576 | 4,610 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Available-for-sale securities |
Note 10 - Income Taxes (Details
Note 10 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 27.00% | |
Effective Income Tax Rate, Continuing Operations, Forecasted Increase (Decrease) in Rate | 16.20% | |
Effective Income Tax Rate Reconciliation, Percent, Total | 10.80% | |
Effective Tax Rate, Including Loss Jurisdictions | 26.00% | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 62 | |
Effective Tax Rate After Discreet Benefits | 23.70% |