Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 15, 2017 | Jun. 30, 2016 | |
Document And Entity Information | |||
Entity Registrant Name | CLEARONE INC | ||
Entity Central Index Key | 840,715 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 65,200 | ||
Entity Common Stock, Shares Outstanding | 8,746,870 | ||
Trading Symbol | CLRO | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,016 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 12,100 | $ 13,412 |
Marketable securities | 5,030 | 7,161 |
Receivables, net of allowance for doubtful accounts of $187 and $54, as of December 31, 2016 and 2015 respectively | 7,461 | 8,692 |
Inventories | 11,377 | 13,447 |
Distributor channel inventories | 1,530 | 1,628 |
Prepaid expenses and other assets | 2,642 | 1,806 |
Total current assets | 40,140 | 46,146 |
Long-term marketable securities | 21,365 | 19,204 |
Long-term inventories, net | 1,664 | 2,018 |
Property and equipment, net | 1,513 | 1,589 |
Intangibles, net | 5,677 | 6,638 |
Goodwill | 12,724 | 12,724 |
Deferred income taxes | 4,654 | 5,093 |
Other assets | 387 | 117 |
Total assets | 88,124 | 93,529 |
Current liabilities: | ||
Accounts payable | 3,545 | 2,815 |
Accrued liabilities | 1,894 | 2,243 |
Deferred product revenue | 3,882 | 4,549 |
Total current liabilities | 9,321 | 9,607 |
Deferred rent | 103 | 150 |
Other long-term liabilities | 1,251 | 1,203 |
Total liabilities | 10,675 | 10,960 |
Shareholders' equity: | ||
Common stock, par value $0.001, 50,000,000 shares authorized, 8,812,644 and 9,183,957 shares issued and outstanding as of December 31, 2016 and 2015 respectively | 9 | 9 |
Additional paid-in capital | 46,669 | 46,291 |
Accumulated other comprehensive loss | (205) | (166) |
Retained earnings | 30,976 | 36,435 |
Total shareholders' equity | 77,449 | 82,569 |
Total liabilities and shareholders' equity | $ 88,124 | $ 93,529 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 187 | $ 54 |
Common stock par value | $ 0.001 | $ 0.001 |
Common stock shares authorized | 50,000,000 | 50,000,000 |
Common stock shares issued | 8,812,644 | 9,183,957 |
Common stock shares outstanding | 8,812,644 | 9,183,957 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||
Revenue | $ 48,637 | $ 57,796 | $ 57,909 |
Cost of goods sold | 19,150 | 21,077 | 22,586 |
Gross profit | 29,487 | 36,719 | 35,323 |
Operating expenses: | |||
Sales and marketing | 10,032 | 10,646 | 11,227 |
Research and product development | 8,584 | 8,318 | 8,969 |
General and administrative | 7,325 | 7,493 | 7,152 |
Total operating expenses | 25,921 | 26,457 | 27,348 |
Operating income | 3,566 | 10,262 | 7,975 |
Other income, net | 312 | 289 | 254 |
Income before income taxes | 3,878 | 10,551 | 8,229 |
Provision for income taxes | (1,434) | (3,775) | (2,633) |
Net income | $ 2,444 | $ 6,776 | $ 5,596 |
Basic earnings per common share | $ 0.27 | $ 0.74 | $ 0.61 |
Diluted earnings per common share | $ 0.26 | $ 0.71 | $ 0.58 |
Basic weighted average shares outstanding | 9,021,980 | 9,127,385 | 9,166,769 |
Diluted weighted average shares outstanding | 9,306,034 | 9,594,659 | 9,581,326 |
Comprehensive income: | |||
Net income | $ 2,444 | $ 6,776 | $ 5,596 |
Other comprehensive income: | |||
Unrealized gain (loss) on available-for-sale securities, net of tax | (1) | (81) | 14 |
Change in foreign currency translation adjustment | (38) | (77) | (45) |
Comprehensive income | $ 2,405 | $ 6,618 | $ 5,565 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2013 | $ 9 | $ 41,311 | $ 23 | $ 28,992 | $ 70,335 |
Balance, shares at Dec. 31, 2013 | 8,986,080 | ||||
Exercise of stock options | 1,337 | $ 1,337 | |||
Exercise of stock options, shares | 234,432 | (234,432) | |||
Stock repurchased | (2,598) | $ (2,598) | |||
Stock repurchased, shares | (272,767) | ||||
Cash dividends, per share | (914) | (914) | |||
Stock issued - Sabine acquisition | 1,679 | 1,679 | |||
Stock issued - Sabine acquisition, shares | 150,000 | ||||
Tax benefit - stock option exercises | 211 | 211 | |||
Stock-based compensation expense | 401 | 401 | |||
Stock-based compensation expense, shares | |||||
Proceeds from employee stock purchase plan | |||||
Proceeds from employee stock purchase plan, shares | 82 | ||||
Unrealized gain on available-for-sale securities, net of tax | 14 | 14 | |||
Foreign currency translation adjustment | (45) | (45) | |||
Net income | 5,596 | 5,596 | |||
Balance at Dec. 31, 2014 | $ 9 | 44,939 | (8) | 31,076 | 76,016 |
Balance, shares at Dec. 31, 2014 | 9,097,827 | ||||
Exercise of stock options | 308 | $ 308 | |||
Exercise of stock options, shares | 56,143 | (56,143) | |||
Cash dividends, per share | (1,417) | $ (1,417) | |||
Stock issued - Sabine acquisition | |||||
Tax benefit - stock option exercises | 41 | 41 | |||
Stock-based compensation expense | 848 | 848 | |||
Stock-based compensation expense, shares | 15,005 | ||||
Proceeds from employee stock purchase plan | 155 | 155 | |||
Proceeds from employee stock purchase plan, shares | 14,982 | ||||
Unrealized gain on available-for-sale securities, net of tax | (81) | (81) | |||
Foreign currency translation adjustment | (77) | (77) | |||
Net income | 6,776 | 6,776 | |||
Balance at Dec. 31, 2015 | $ 9 | 46,291 | (166) | 36,435 | $ 82,569 |
Balance, shares at Dec. 31, 2015 | 9,183,957 | 9,183,957 | |||
Exercise of stock options | 686 | $ 686 | |||
Exercise of stock options, shares | 149,315 | (374,857) | |||
Stock repurchased | (6,086) | $ (6,086) | |||
Stock repurchased, shares | (542,259) | ||||
Cash dividends, per share | (1,817) | (1,817) | |||
Stock issued - Sabine acquisition | |||||
Tax benefit - stock option exercises | 690 | 690 | |||
Stock-based compensation expense | 667 | 667 | |||
Stock-based compensation expense, shares | 12,491 | ||||
Proceeds from employee stock purchase plan | 87 | 87 | |||
Proceeds from employee stock purchase plan, shares | 9,140 | ||||
Unrealized gain on available-for-sale securities, net of tax | (1) | (1) | |||
Foreign currency translation adjustment | (38) | (38) | |||
Options repurchased | (1,752) | (1,752) | |||
Net income | 2,444 | 2,444 | |||
Balance at Dec. 31, 2016 | $ 9 | $ 46,669 | $ (205) | $ 30,976 | $ 77,449 |
Balance, shares at Dec. 31, 2016 | 8,812,644 | 8,812,644 |
Consolidated Statements of Sha6
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends, per share | $ 0.20 | $ 0.155 | $ 0.10 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net income | $ 2,444 | $ 6,776 | $ 5,596 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization expense | 1,873 | 2,058 | 1,972 |
Amortization of deferred rent | (73) | (95) | (79) |
Stock-based compensation expense | 667 | 848 | 401 |
Provision for (recoveries of) doubtful accounts, net | 132 | (4) | (71) |
Write-down of inventory to net realizable value | 653 | 496 | 946 |
Loss on disposal of assets | 54 | 7 | |
Tax benefit from exercise of stock options | (690) | (41) | (211) |
Deferred income taxes | 439 | (4) | (495) |
Changes in operating assets and liabilities: | |||
Receivables | 1,085 | 1,201 | (251) |
Inventories | 1,869 | (2,249) | (2,614) |
Prepaid expenses and other assets | (209) | 824 | 844 |
Accounts payable | 733 | (242) | (84) |
Accrued liabilities | (319) | (1,219) | 1,451 |
Income taxes payable | (207) | 323 | (947) |
Deferred product revenue | (665) | (447) | 858 |
Other long-term liabilities | 48 | (638) | (606) |
Net cash provided by operating activities | 7,834 | 7,594 | 6,710 |
Cash flows from investing activities: | |||
Payment towards business acquisitions | (13,068) | ||
Purchase of property and equipment | (730) | (359) | (642) |
Purchase of intangibles | (161) | (90) | |
Proceeds from maturities and sales of marketable securities | 9,795 | 7,341 | 4,650 |
Purchase of marketable securities | (9,826) | (7,630) | (5,266) |
Net cash used in investing activities | (922) | (648) | (14,416) |
Cash flows from financing activities: | |||
Net proceeds from equity-based compensation programs | 773 | 463 | 1,337 |
Repurchase and cancellation of stock options | (1,752) | ||
Tax benefits from equity-based compensation programs | 690 | 41 | 211 |
Stock registration costs | (55) | ||
Dividend payments | (1,817) | (1,417) | (914) |
Payments for stock repurchases | (6,086) | (2,598) | |
Net cash used in financing activities | (8,192) | (913) | (2,019) |
Effect of exchange rate changes on cash and cash equivalents | (32) | (61) | (27) |
Net increase (decrease) in cash and cash equivalents | (1,312) | 5,972 | (9,752) |
Cash and cash equivalents at the beginning of the year | 13,412 | 7,440 | 17,192 |
Cash and cash equivalents at the end of the year | 12,100 | 13,412 | 7,440 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 3 | ||
Cash paid for income taxes | 1,154 | 3,730 | 3,017 |
Supplemental disclosure of non-cash investing and financing activities: | |||
Issuance of common stock in connection with acquisition of Sabine | $ 1,679 |
Business Description, Basis of
Business Description, Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [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, network streaming and digital signage solutions for audio and visual communications. The performance and simplicity of our advanced comprehensive solutions offer unprecedented levels of functionality, reliability, and scalability. Basis of Presentation: Fiscal Year Consolidation Use of Estimates Foreign Currency Translation Concentration Risk Significant Accounting Policies: Cash Equivalents Marketable Securities - A decline in the market value of any available-for-sale security below cost that is deemed other than temporary results in a charge to earnings and establishes a new cost basis for the security. Losses are charged against “Other income” when a decline in fair value is determined to be other than temporary. We review several factors to determine whether a loss is other than temporary. These factors include, but are not limited to: (i) the extent to which the fair value is less than cost and the cause for the fair value decline, (ii) the financial condition and near term prospects of the issuer, (iii) the length of time a security is in an unrealized loss position and (iv) our ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. There were no other-than-temporary impairments recognized during the years ended December 31, 2016, 2015 and 2014. Accounts Receivable The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. Management regularly analyzes accounts receivable including current aging, historical write-off experience, customer concentrations, customer creditworthiness, and current economic trends when evaluating the adequacy of the allowance for doubtful accounts. We review customer accounts quarterly by first assessing accounts with aging over a specific duration and balance over a specific amount. We review all other balances on a pooled basis based on past collection experience. Accounts identified in our customer-level review as exceeding certain thresholds are assessed for potential allowance adjustment if we conclude the financial condition of that customer has deteriorated, adversely affecting their ability to make payments. Delinquent account balances are written off if the Company determines that the likelihood of collection is not probable. If the assumptions that are used to determine the allowance for doubtful accounts change, the Company may have to provide for a greater level of expense in future periods or reverse amounts provided in prior periods. The Company’s allowance for doubtful accounts activity for the years ended as follows: Year Ended December 31, 2016 2015 2014 Balance at beginning of the year $ 54 $ 58 $ 129 Allowance increase (decrease) 148 36 (49 ) Write offs, net of recoveries (15 ) (40 ) (22 ) Balance at end of the year $ 187 $ 54 $ 58 Inventories Distributor channel inventories include products that have been delivered to customers for which revenue recognition criteria have not been met. The inventory also includes advance replacement units (valued at cost) provided by the Company to end-users to service defective products under warranty. The value of advance replacement units included in the inventory was $21 and $75, as of December 31, 2016 and 2015, respectively. Property and Equipment Goodwill and Intangible Assets – Intangibles – Goodwill and Other Note 3 – Business Combinations, Goodwill and Intangibles Impairment of Long-Lived Assets – Revenue Recognition The Company provides a right of return on product sales to certain distributors and other resellers under a product rotation program. Under this seldom-used program, once a quarter, a distributor or reseller is allowed to return products purchased during the prior 180 days for a total value generally not exceeding 15% of the distributor’s or reseller’s net purchases during the preceding quarter. The distributor or reseller is, however, required to place a new purchase order for an amount not less than the value of products returned under the stock rotation program. When products are returned, the associated revenue, cost of goods sold, inventory and accounts receivable originally recorded are reversed. When the new order is fulfilled, the revenue, associated cost of goods sold, inventory and accounts receivable are recorded and the product revenue is subject to the deferral analysis described below. In a small number of cases, the distributors are also permitted to return products for other business reasons. Revenue from product sales to distributors is not recognized until the return privilege has expired or until it can be determined with reasonable certainty that the return privilege has expired, which approximates when product is sold-through to customers of the Company’s distributors (dealers, system integrators, value-added resellers, and end-users) rather than when the product is initially shipped to a distributor. At each quarter-end, the Company evaluates the inventory in the channel through information provided by our distributors. The level of inventory in the channel will fluctuate up-ward or down-ward each quarter, based upon its distributors’ individual operations. Accordingly, at each quarter-end, the deferral for revenue and associated cost of goods sold are calculated and recorded based upon the actual channel inventory reported at quarter-end. Further, with respect to distributors and other channel partners not reporting the channel inventory, the revenue and associated cost of goods sold are deferred until the Company receives payment for the product sales made to such distributors or channel partners. The amount of deferred cost of goods sold is included in distributor channel inventories. The details of deferred revenue and associated cost of goods sold and gross profit are as follows: As of December 31, 2016 2015 Deferred revenue $ 3,882 $ 4,549 Deferred cost of goods sold 1,530 1,628 Deferred gross profit $ 2,352 $ 2,921 The Company offers rebates and market development funds to certain of its distributors, dealers/resellers, and end-users based upon the volume of product purchased by them. The Company records rebates as a reduction of revenue in accordance with GAAP. The Company provides, at its discretion, advance replacement units to end-users on defective units of certain products under warranty. Since the purpose of these units is not revenue generating, the Company tracks the units due from the end-user, until the defective unit has been returned. Any amount due from the customer upon failure to return the products is accounted as receivable only after establishing customer's failure to return the products. The inventory due from the customer is accounted at cost or market value whichever is lower. Sales and Similar Taxes - Shipping and Handling Costs – Warranty Costs The details of changes in the Company’s warranty accrual are as follows: Year Ended December 31, 2016 2015 2014 Balance at the beginning of year $ 288 $ 331 $ 338 Accruals/additions 361 442 511 Usage/claims (403 ) (485 ) (518 ) Balance at end of year $ 246 $ 288 $ 331 Advertising Research and Product Development Costs Income Taxes Company’s income tax provision or benefit. As of December 31, 2016 and 2015, the Company had a valuation allowance of $1,404 and $1,071, respectively against foreign net operating losses, foreign intangible assets, capital losses carryforwards, and state research and development credits. The Company follows the provisions c o Income Taxes. Judgment is required in determining the provision for income taxes and related accruals, deferred tax assets and liabilities. In the ordinary course of business, there are transactions and calculations where the ultimate tax outcome is uncertain. Additionally, the Company’s tax returns are subject to audit by various tax authorities. Although the Company believes that its estimates are reasonable, actual results could differ from these estimates. Earnings Per Share Year Ended December 31, 2016 2015 2014 Numerator: Net income $ 2,444 $ 6,776 $ 5,596 Denominator: Basic weighted average shares 9,021,980 9,127,385 9,166,769 Dilutive common stock equivalents using treasury stock method 284,054 467,274 414,557 Diluted weighted average shares 9,306,034 9,594,659 9,581,326 Basic earnings per common share: $ 0.27 $ 0.74 $ 0.61 Diluted earnings per common share: $ 0.26 $ 0.71 $ 0.58 Weighted average options outstanding 885,163 1,053,785 975,696 Anti-dilutive options not included in the computation 323,644 177,125 209,751 Share-Based Payment Recent Accounting Pronouncements - In May 2015, 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 permitted. The updated standard becomes effective for the Company on January 1, 2018. The Company expects to adopt this accounting standard update on a modified retrospective basis in the first quarter of fiscal 2019, and it is currently evaluating the impact of this accounting standard update on the consolidated financial statements. On February 25, 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 and it is currently evaluating the impact that ASU 2016-09 will have on our consolidated financial statements. |
Marketable Securities
Marketable Securities | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | 2. 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 shareholders’ 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 December 31, 2016 and 2015 were as follows: Amortized cost Gross unrealized holding gains Gross unrealized holding losses Estimated fair value December 31, 2016 Available-for-sale securities: Corporate bonds and notes $ 20,028 $ 64 $ (122 ) $ 19,970 Municipal bonds 6,463 6 (44 ) 6,425 Total available-for-sale securities $ 26,491 $ 70 $ (166 ) $ 26,395 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 December 31, 2016: Amortized Estimated cost fair value Due within one year $ 5,029 $ 5,030 Due after one year through five years 21,353 21,256 Due after five years through ten years 109 109 Total available-for-sale securities $ 26,491 $ 26,395 Debt securities in an unrealized loss position as of December 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 December 31, 2016 are summarized as follows: Less than 12 months More than 12 months Total Estimated fair value Gross unrealized holding losses Estimated fair value Gross unrealized holding losses Estimated fair value Gross unrealized holding losses As of December 31, 2016 Corporate bonds and notes $ 10,294 $ (112 ) 1,029 $ (9 ) $ 11,323 $ (121 ) Municipal bonds 3,910 (45 ) — — 3,910 (45 ) $ 14,204 $ (157 ) $ 1,029 $ (9 ) $ 15,233 $ (166 ) |
Business Combinations, Goodwill
Business Combinations, Goodwill and Intangibles | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Business Combinations, Goodwill and Intangibles | 3. Business Combinations, Goodwill and Intangibles Acquisition of Sabine On March 7, 2014, the Company completed the acquisition of Sabine, Inc. (“Sabine”) through a stock purchase agreement (“SPA”). Sabine manufactures, designs and sells Sacom professional wireless microphone systems for live and installed audio. It also makes FBX Feedback Exterminator for reliable automatic feedback control. With the addition of Sabine, ClearOne will have reliable and exclusive access to the wireless microphones that are a critical component of ClearOne’s complete microphone portfolio. Pursuant to the SPA, the Company (i) paid initial consideration of $8,141 in cash, (ii) accrued for possible additional earn-out payments over the next two years, estimated to be $657, and (iii) issued 150,000 shares of restricted common stock of the Company, valued at $1,679 (determined on the basis of the closing market price of the Company’s stock on the acquisition date). The purchase price was paid out of cash on hand. The SPA contains representations, warranties and indemnifications customary for a transaction of this type. The following table summarizes the consideration paid for the acquisition: Consideration Cash $ 8,141 Common stock 1,679 Contingent consideration 657 Total $ 10,477 The fair values of Sabine assets acquired and liabilities assumed are based on the information that was available during the measurement period of twelve months from the date of acquisition. The fair value of identified assets and liabilities acquired and goodwill is as follows: Fair value Cash $ 125 Accounts receivable 255 Inventories 844 Prepaid and other 105 Intangibles 3,970 Property and equipment 292 Other long-term assets 11 Goodwill 5,510 Deferred tax asset 245 Trade accounts payable (420 ) Accrued liabilities (405 ) Stock registration costs (55 ) Total $ 10,477 The goodwill of $5,510 related to the acquisition of Sabine is composed of expected synergies in utilizing Sabine technology in ClearOne product offerings, reduction in future combined research and development expenses, and intangible assets including acquired workforce that do not qualify for separate recognition. The goodwill balance of $5,510 related to the acquisition of Sabine is expected to be deductible for tax purposes. Spontania business of Spain-based Dialcom Networks, S.L. On April 1, 2014 ClearOne closed on the acquisition of the Spontania business of Spain-based Dialcom Networks, S.L. The Spontania cloud-based service empowers customers to deploy HD video conferencing, web collaboration, and more with equipment most businesses have and use every day - video-conferencing endpoints, desktops, laptops, web browsers, tablets, and smartphones. With Spontania there is no hardware investment and the service operates off of a reservation-less model, enabling on-demand video communications from virtually anywhere, anytime, with anyone on any device. The aggregate purchase price under the terms of the transaction was approximately €3.66 million in cash (approximately US$5.1 million), after certain closing adjustments. ClearOne did not assume any debt or cash. The cash purchase price was paid out of cash on hand. The addition of this technology was an integral part of the Company’s strategy to build an all-inclusive video collaboration portfolio. The fair value of identified assets and liabilities acquired from the Spontania acquisition was as follows: Fair value Intangibles $ 1,335 Property and equipment 47 Goodwill 3,741 Accrued liabilities (71 ) Total $ 5,052 The goodwill of $3,741 relates to the acquisition of Spontania cloud-based technology and intangible assets including acquired workforce that does not qualify for separate recognition. Acquisitions Expenses The Company incurred $588 in acquisition related expenses for the Sabine and Spontania acquisitions, all of which were categorized under General and administrative expenses in the Consolidated Statement of Income and Comprehensive Income for the year ended December 31, 2014. Goodwill Changes in the carrying amount of the Company’s goodwill for the years ended December 31, 2016, 2015, and 2014 were as follows: 2016 2015 2014 Balance as of January 1, Goodwill $ 12,724 $ 12,724 $ 3,472 Accumulated impairment losses — — — 12,724 12,724 3,472 Goodwill acquired during the year — — 9,252 Balance as of December 31, Goodwill 12,724 12,724 12,724 Accumulated impairment losses — — — $ 12,724 $ 12,724 $ 12,724 Intangible Assets Intangible assets as of December 31, 2016, and 2015 consisted of the following: Estimated As of December 31, useful lives 2016 2015 Tradename 5 to 7 years $ 555 $ 555 Patents and technological know-how 10 years 6,010 5,850 Proprietary software 3 to 15 years 4,341 4,341 Other 3 to 5 years 324 324 11,230 11,230 Accumulated amortization (5,553 ) (4,432 ) Total intangible assets, net $ 5,677 $ 6,638 During the years ended December 31, 2016, 2015 and 2014, amortization of these intangible assets were $1,121, $1,258, and 1,210 respectively. The estimated future amortization expense of intangible assets is as follows: Years ending December 31, 2017 $ 928 2018 853 2019 781 2020 602 2021 602 Thereafter 1,911 $ 5,677 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | 4. Inventories Inventories, net of reserves, consisted of the following: As of December 31, 2016 2015 Current: Raw materials $ 2,291 $ 2,735 Finished goods 9,086 10,712 $ 11,377 $ 13,447 Long-term: Raw materials $ 599 $ 375 Finished goods 1,065 1,643 $ 1,664 $ 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 have developed programs to reduce the inventory to normal operating levels in the near future. 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 $1,530 and $1,628 as of December 31, 2016 and 2015, respectively. Distributor channel inventories represent inventory at distributors and other customers where revenue recognition criteria have not been achieved. The losses incurred on valuation of inventory at the lower of cost or market value and write-off of obsolete inventory amounted to $653, $496 and $946 during the years ended December 31, 2016, 2015 and 2014, respectively. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 5. Property and Equipment Major classifications of property and equipment and estimated useful lives were as follows: Estimated As of December 31, useful lives 2016 2015 Office furniture and equipment 3 to 10 years $ 4,835 $ 4,412 Leasehold improvements 1 to 6 years 1,495 1,488 Manufacturing and test equipment 2 to 10 years 2,537 2,483 8,867 8,383 Accumulated depreciation and amortization (7,354 ) (6,794 ) Property and equipment, net $ 1,513 $ 1,589 Depreciation expense on property and equipment for the years ended December 31, 2016, 2015 and 2014 was $723, $801, and $761, respectively. |
Leases and Deferred Rent
Leases and Deferred Rent | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Leases and Deferred Rent | 6. Leases and Deferred Rent Rent expense is recognized on a straight-line basis over the period of the lease taking into account future rent escalation and holiday periods. Rent expense was $1,099, $1,420 and $1,236, including amortization of deferred rent of $73, $95, and $79 for the years ended December 31, 2016, 2015 and 2014, respectively. We occupy a 5,000 square-foot facility in Gainsville, Florida under the terms of an operating lease that expires in February 2021 with the possibility of renewing the lease for 10 more years. The Gainesville facility was used primarily to support out research and development activities. We currently occupy a 31,000 square-foot facility in Salt Lake City, Utah under the terms of an operating lease expiring in May 2019, which supports our principal administrative, sales, marketing, customer support, and research and product development activities. We occupy a 7,070 square-foot facility in Austin, Texas - under the terms of an operating lease expiring in October 2019. This facility support our administrative, sales, marketing, customer support, and research and development activities. We occupy a 40,000 square-foot warehouse in Salt Lake City, Utah under the terms of an operating lease expiring in December 2021, which serves as our primary inventory fulfillment and repair center. This facility also serves as our assembly workshop for digital signage products. Future minimum lease payments under non-cancellable operating leases with initial terms of one year or more are as follows: Years ending December 31, 2017 $ 928 2018 872 2019 467 2020 239 2021 204 Total minimum lease payments $ 2,710 |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | 7. Accrued Liabilities Accrued liabilities consist of the following: As of December 31, 2016 2015 Accrued salaries and other compensation $ 1,098 $ 1,170 Sales and marketing programs 319 477 Product warranty 246 288 Other accrued liabilities 231 308 Total $ 1,894 $ 2,243 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. Commitments and Contingencies We establish contingent liabilities when a particular contingency is both probable and estimable. The Company is not aware of any pending claims or assessments, other than as described below, which may have a material adverse impact on the Company’s financial position or results of operations. Outsource Manufacturers. Uncertain Tax Positions. Legal Proceedings. On or about October 24, 2016, the Company received written notice from the United States Department of Labor, Occupational Health and Safety Administration (“OSHA”) that a complaint had been filed against it by a former employee. Among other things, the former employee’s OSHA complaint alleges harassment, retaliation, and violations of 18 U.S.C.A. Section 1514A, et seq. In 2016, the Company recorded $927 of pretax gross expenses related to the defense of the OSHA Complaint and review of the allegations underlying the former employee’s OSHA complaint. We expect to incur additional expenses related to legal and other professional services rendered in connection with the defense of OSHA Complaint and/or related matters in future periods and will recognize these expenses as services are received. Expenses related to the defense of the OSHA Complaint and/or related matters may include additional liabilities from OSHA’s expected investigation; future governmental investigations and/or enforcement proceedings; future civil litigation; and future unspecified expenses. The Company maintains an Employment Practices Liability policy with Chubb/Federal Insurance Company (the “EPL Policy”). Based on the allegations contained in the OSHA Complaint, the Company has tendered a claim for coverage under the EPL Policy. In addition, the Company is also involved from time to time in various claims and legal proceedings which arise in the normal course of our business. Such matters are subject to many uncertainties and outcomes that are not predictable. However, based on the information available to us, we do not believe any such other proceedings will have a material adverse effect on our business, results of operations, financial position, or liquidity. Conclusion We believe there are no other items that will have a material adverse impact on the Company’s financial position or results of operations. Legal proceedings are subject to all of the risks and uncertainties of legal proceedings and there can be no assurance as to the probable result of any legal proceedings. The Company believes it has adequately accrued for the aforementioned contingent liabilities. If adverse outcomes were to occur, our financial position, results of operations and cash flows could be negatively affected materially for the period in which the adverse outcomes are known. |
Share-Based Payments
Share-Based Payments | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Payments | 9. Share-Based Payments 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, 2015. 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 December 31, 2016 had contractual lives of ten years. Under the 1998 Plan, 2,500,000 shares were authorized for grant. As of December 31, 2016, there were 150,000 options outstanding under the 1998 Plan, which includes the cliff vesting and 3 or 4-year vesting options discussed above. As of December 31, 2016, there were 700,232 options outstanding under the 2007 Plan. As of December 31, 2016, the 2007 Plan had 826,268 authorized unissued options, while there were no options remaining that could be granted under the 1998 Plan. The Company uses judgment in determining the fair value of the share-based payments on the date of grant using an option-pricing model with assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, the risk-free interest rate of the awards, the expected life of the awards, the expected volatility over the term of the awards, and the expected dividends of the awards. The Company uses the Black-Scholes option pricing model to determine the fair value of share-based payments granted under the guidelines of ASC Topic 718. In applying the Black-Scholes methodology to the options granted, the Company used the following assumptions: Year ended December 31, 2016 2015 2014 Risk-free interest rate, average 1.52 % 2.00 % 2.20 % Expected option life, average 6.1 years 6.1 years 8.2 years Expected price volatility, average 43.75 % 44.30 % 47.60 % Expected dividend yield 1.71 % 1.10 % -% The risk-free interest rate is determined using the U.S. Treasury rate in effect as of the date of the grant, based on the expected life of the stock option. The expected life of the stock option is determined using historical data. The expected price volatility is determined using a weighted average of daily historical volatility of the Company’s stock price over the corresponding expected option life. Under guidelines of ASC Topic 718, the Company recognizes compensation cost net of an expected forfeiture rate and recognized the associated compensation cost for only those awards expected to vest on a straight-line basis over the underlying requisite service period. The Company estimated the forfeiture rates based on its historical experience and expectations about future forfeitures. The following table shows the stock option activity: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value As of December 31, 2013 1,111,274 $ 5.15 Granted 193,500 8.83 Expired and canceled (29,532 ) 6.87 Forfeited prior to vesting (729 ) 8.88 Exercised (234,432 ) 5.72 As of December 31, 2014 1,040,081 $ 5.65 5.60 $ 4,286 Granted 56,666 13.03 Reinstated 4,583 4.47 Expired and canceled (1,000 ) 3.42 Forfeited prior to vesting (15,252 ) 7.85 Exercised (56,143 ) 5.51 As of December 31, 2015 1,028,935 $ 6.03 4.73 $ 7,104 Granted 217,700 11.73 Expired and canceled (4,186 ) 12.03 Forfeited prior to vesting (17,360 ) 10.67 Exercised (374,857 ) 4.46 As of December 31, 2016 850,232 $ 8.06 5.78 $ 3,001 Vested and Expected to Vest at December 31, 2014 1,040,081 $ 5.65 5.60 $ 4,286 Vested at December 31, 2014 730,016 $ 4.67 4.15 $ 3,271 Vested and Expected to Vest at December 31, 2015 1,028,935 $ 6.03 4.73 $ 7,104 Vested at December 31, 2015 820,022 $ 5.10 3.74 $ 6,419 Vested and Expected to Vest at December 31, 2016 850,232 $ 8.06 5.78 $ 3,001 Vested at December 31, 2016 552,097 $ 6.33 4.09 $ 2,843 The weighted average per share fair value of options granted during the years ending December 31, 2016, 2015 and 2014 was $4.27, $5.27, and $ 4.85 respectively. The total intrinsic value of options exercised during the years ended December 31, 2016, 2015 and 2014 was $2,824, $404, and $1,337 respectively. The total pre-tax compensation cost related to stock options recognized during the years ended December 31, 2016, 2015, and 2014 was $628, $552 and $401, respectively. Tax benefit from compensation cost related to stock options during the years ended December 31, 2016, 2015 and 2014 was $107, $41 and $211, respectively. As of December 31, 2016, the total compensation cost related to stock options not yet recognized and before the effect of any forfeitures was $1,127, which is expected to be recognized over approximately the next 2.19 years on a straight-line basis. Employee Stock Purchase Plan During 2016, the Company issued shares to employees under the Company’s 2015 Employee Stock Purchase Plan (the “ESPP”). The ESPP was approved by the Company’s shareholders on December 12, 2015. As of December 31, 2016, 475,893 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. Shares purchased and compensation expense associated Employee Stock Purchase Plans were as follows: 2016 2015 2014 Shares purchased under ESPP plans 9,140 14,982 82 Plan compensation expense $ 18 $ 31 $ - Stock Repurchase Program and Cash Dividends In May 2012, our Board of Directors authorized a stock repurchase program to purchase the Company’s common stock in the open market. A total of 272,767 shares costing $2,598 were purchased under this program during the year ended December 31, 2014. The cost of shares purchased were recorded as a reduction to shareholders’ equity. On December 2, 2015, the Company announced the discontinuance of the stock repurchase program along with the initiation of a cash dividend plan. On January 31, 2017, the Company declared its most recent dividend under this plan of $0.05 per share of ClearOne common stock, payable on March 1, 2017 to shareholders of record on February 15, 2017. In addition, on March 1, 2017, our Board of Directors authorized an increase in our quarterly dividend from $0.05 per share to $0.07 per share beginning with the second quarter dividend in 2017 expected to be paid on or about June 1, 2017. On March 9, 2016, the Board of Directors of the Company authorized the repurchase of up to $10,000 of the Company’s outstanding shares of common stock under a new stock repurchase program. In connection with the repurchase authorization, the Company was authorized to complete the repurchase through open market transactions or through an accelerated share repurchase program, in each case to be executed at management’s discretion based on business and market conditions, stock price, trading restrictions, acquisition activity and other factors. The repurchase program may be suspended or discontinued at any time without prior notice. The transactions effectuated to date occurred in open market purchases. On March 1, 2017, the Board of Directors of the Company renewed and extended the repurchase program for up to an additional $10 million of common stock over the next twelve months. In connection with the repurchase extension authorization, the Company was authorized to complete the repurchase through open market transactions or through an accelerated share repurchase program, in each case to be executed at management’s discretion based on business and market conditions, stock price, trading restrictions, acquisition activity and other factors. The repurchase program may be suspended or discontinued at any time without prior notice. The transactions effectuated to date occurred in open market purchases. During the twelve months ended December 31, 2016, we acquired the following shares of common stock under the current stock repurchase program: $ in thousands except per share price Total Number of Shares Purchased (a) Average Price Paid per Share (b) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (c) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs ($ thousands) (d) March 9 to March 31 33,600 $ 12.02 33,600 $ 9,596 April 1 to June 30 330,515 11.25 330,515 5,885 July 1 to September 30 91,965 11.16 91,965 4,861 October 1 to December 31 86,179 11.00 86,179 3,914 Total 542,259 $ 11.25 542,259 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 and directors. 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 and directors at an average purchase price of $7.77. |
Significant Customers
Significant Customers | 12 Months Ended |
Dec. 31, 2016 | |
Risks and Uncertainties [Abstract] | |
Significant Customers | 10. Significant Customers Sales to significant customers that represented more than 10 percent of total revenues are as follows: Year ended December 31, 2016 2015 2014 Customer A 16.3 % 14.2 % 16.0 % Customer B - %* 10.4 % - %* Total 16.3 % 24.6 % 16.0 % * Sales didn’t exceed 10% of the revenue. The following table summarizes the percentage of total gross accounts receivable from significant customers: As of December 31, 2016 2015 Customer A 13.40 % 18 % Customer B 11.70 % 16 % Total 25.10 % 34 % These customers facilitate product sales to a large number of end-users, none of which is known to account for more than 10 percent of the Company’s revenue from product sales. Nevertheless, the loss of one or more of these customers could reduce revenue and have a material adverse effect on the Company’s business and results of operations. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 11. 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 Level 2 Level 3 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 tables set forth the fair value of the financial instruments re-measured by the Company as of December 31, 2016 and 2015: Level 1 Level 2 Level 3 Total December 31, 2016 Corporate bonds and notes $ — $ 19,970 $ — $ 19,970 Municipal bonds — 6,425 — 6,425 Total $ — $ 26,395 $ — $ 26,395 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 | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes Consolidated income before taxes for domestic and foreign operations consisted of the following: Year ended December 31, 2016 2015 2014 Domestic $ 6,332 $ 13,295 $ 9,615 Foreign (2,454 ) (2,744 ) (1,386 ) Total $ 3,878 $ 10,551 $ 8,229 The Company’s (provision) for income taxes consisted of the following: Year ended December 31, 2016 2015 2014 Current: Federal $ (593 ) $ (3,386 ) $ (2,750 ) State 63 (344 ) (173 ) Foreign (37 ) — (109 ) Total current (567 ) (3,730 ) (3,032 ) Deferred: Federal (633 ) (220 ) 379 State (17 ) (10 ) 27 Foreign 115 470 401 (535 ) 240 807 Change in valuation allowance (332 ) (285 ) (408 ) Total deferred (867 ) (45 ) 399 (Provision) for income taxes $ (1,434 ) $ (3,775 ) $ (2633 ) The income tax (provision) differs from that computed at the federal statutory corporate income tax rate as follows: Year ended December 31, 2016 2015 2014 Tax (provision) at Federal statutory rate $ (1,318 ) $ (3,587 ) $ (2,798 ) State income tax (provision), net of federal benefit (148 ) (408 ) (257 ) Research and development tax credits 423 456 549 Foreign earnings or losses taxed at different rates (292 ) (231 ) (102 ) Other 233 280 383 Change in valuation allowance (332 ) (285 ) (408 ) Tax (provision) $ (1,434 ) $ (3,775 ) $ (2,633 ) The tax effects of significant temporary differences representing net deferred tax assets and liabilities consisted of the following: 2016 2015 Deferred revenue $ 845 $ 1,019 Basis difference in intangible assets (56 ) 26 Inventory reserve 2,650 2,452 Net operating loss carryforwards 1,391 1,347 Research and development tax credits 88 — Accrued expenses 92 165 Stock-based compensation 584 672 Allowance for sales returns and doubtful accounts 70 20 Difference in property and equipment basis (350 ) (423 ) Other 743 886 Total net deferred income tax asset 6,057 6,164 Less: Valuation allowance (1,403 ) (1,071 ) Net deferred income tax asset (liability) $ 4,654 $ 5,093 The Company has not provided for U.S. deferred income taxes or foreign withholding taxes on undistributed earnings of its non-U.S. subsidiaries since these earnings are intended to be reinvested indefinitely, in accordance with guidelines contained in ASC Topic 740, Accounting for Income Taxes In accordance with ASC Topic 740, the Company analyzed its valuation allowance at December 31, 2016 and determined that, based upon available evidence, it is more likely than not that certain of its deferred tax assets may not be realized and, as such, has established a valuation allowance against certain deferred tax assets. These deferred tax assets include foreign net operating loss carryforwards, foreign intangible assets, state R&D tax credit carryforwards, and capital loss carryforwards. The Company has federal net operating loss (“NOL”) carryforwards of approximately $755 (pre-tax), Hong Kong NOL carryforwards of approximately $255, and Spain NOL carryforwards of approximately $855. The federal NOL carryforwards will begin to expire in 2029. The Hong Kong and Spain NOL carryforwards do not expire. Effective July 1, 2007, the Company adopted the accounting standards related to uncertain tax positions. This standard requires that tax positions be assessed using a two-step process. A tax position is recognized if it meets a “more likely than not” threshold, and is measured at the largest amount of benefit that is greater than 50 percent likely of being realized. Uncertain tax positions must be reviewed at each balance sheet date. Liabilities recorded as a result of this analysis must generally be recorded separately from any current or deferred income tax accounts. The total amount of unrecognized tax benefits at December 31, 2016 and 2015, that would favorably impact our effective tax rate if recognized was $233 and $176, respectively. As of December 31, 2016 and 2015, we accrued $87 and $55, respectively, in interest and penalties related to unrecognized tax benefits. We account for interest expense and penalties for unrecognized tax benefits as part of our income tax provision. Although we believe our estimates are reasonable, we can make no assurance that the final tax outcome of these matters will not be different from that which we have reflected in our historical income tax provisions and accruals. Such difference could have a material impact on our income tax provision and operating results in the period in which we make such determination. A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax positions is as follows: Year ended December 31, 2016 2015 Balance - beginning of year $ 1,126 $ 1,678 Additions based on tax positions related to the current year 16 52 Additions for tax positions of prior years 47 5 Reductions for tax positions of prior years - (503 ) Settlements - — Lapse in statutes of limitations - (106 ) Uncertain tax positions, ending balance $ 1,189 $ 1,126 The Company’s U.S. federal income tax returns for 2012 through 2015 are subject to examination. The Company also files in various state and foreign jurisdictions. With few exceptions, the Company is no longer subject to federal, state, or non-U.S. income tax examinations by tax authorities for years prior to 2012. The Company completed its audit by the Internal Revenue Service (“IRS”) for its 2006 tax return in 2010. As a result of the audit by the IRS, there were no material adjustments made to the Company’s tax return. The IRS commenced an examination of the Company’s 2012 tax return. We do not anticipate the examination will result in a material change to its financial position. The Inland Revenue Department of Hong Kong, a Special Administrative Region (the “IRD”), commenced an examination of the Company’s Hong Kong profits tax returns for 2009 through 2011 in the fourth quarter of 2012, which was completed subsequent to December 31, 2016. As a result of the audit, there were no material changes to the Company’s financial position. During the next twelve months, it is reasonably possible that the amount of the Company’s unrecognized income tax benefits could change significantly. These changes could be the result of our ongoing tax audits or the settlement of outstanding audit issues. However, due to the issues being examined, at the current time, an estimate of the range of reasonably possible outcomes cannot be made, beyond amounts currently accrued. |
Geographic Sales Information
Geographic Sales Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Geographic Sales Information | 13. Geographic Sales Information The United States was the only country to contribute more than 10 percent of total revenues in each fiscal year. The Company’s revenues are substantially denominated in U.S. dollars and are summarized geographically as follows: Year ended December 31, 2016 2015 2014 United States $ 31,838 $ 39,563 $ 39,837 All other countries 16,799 18,233 18,072 Total $ 48,637 $ 57,796 $ 57,909 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | 14. Subsequent Events On January 31, 2017, the Company declared a stock dividend of $0.05 per share of ClearOne common stock payable on March 1, 2017 to shareholders of record on February 15, 2017. In March 2017, the Company renewed and extended its common stock repurchase program of $10,000 to continue through March 9, 2018. |
Business Description, Basis o22
Business Description, Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Fiscal Year | Fiscal Year |
Consolidation | Consolidation |
Use of Estimates | Use of Estimates |
Foreign Currency Translation | Foreign Currency Translation |
Concentration Risk | Concentration Risk |
Cash Equivalents | Cash Equivalents |
Marketable Securities | Marketable Securities - A decline in the market value of any available-for-sale security below cost that is deemed other than temporary results in a charge to earnings and establishes a new cost basis for the security. Losses are charged against “Other income” when a decline in fair value is determined to be other than temporary. We review several factors to determine whether a loss is other than temporary. These factors include, but are not limited to: (i) the extent to which the fair value is less than cost and the cause for the fair value decline, (ii) the financial condition and near term prospects of the issuer, (iii) the length of time a security is in an unrealized loss position and (iv) our ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. There were no other-than-temporary impairments recognized during the years ended December 31, 2016, 2015 and 2014. |
Accounts Receivable | Accounts Receivable The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. Management regularly analyzes accounts receivable including current aging, historical write-off experience, customer concentrations, customer creditworthiness, and current economic trends when evaluating the adequacy of the allowance for doubtful accounts. We review customer accounts quarterly by first assessing accounts with aging over a specific duration and balance over a specific amount. We review all other balances on a pooled basis based on past collection experience. Accounts identified in our customer-level review as exceeding certain thresholds are assessed for potential allowance adjustment if we conclude the financial condition of that customer has deteriorated, adversely affecting their ability to make payments. Delinquent account balances are written off if the Company determines that the likelihood of collection is not probable. If the assumptions that are used to determine the allowance for doubtful accounts change, the Company may have to provide for a greater level of expense in future periods or reverse amounts provided in prior periods. The Company’s allowance for doubtful accounts activity for the years ended as follows: Year Ended December 31, 2016 2015 2014 Balance at beginning of the year $ 54 $ 58 $ 129 Allowance increase (decrease) 148 36 (49 ) Write offs, net of recoveries (15 ) (40 ) (22 ) Balance at end of the year $ 187 $ 54 $ 58 |
Inventories | Inventories Distributor channel inventories include products that have been delivered to customers for which revenue recognition criteria have not been met. The inventory also includes advance replacement units (valued at cost) provided by the Company to end-users to service defective products under warranty. The value of advance replacement units included in the inventory was $21 and $75, as of December 31, 2016 and 2015, respectively. |
Property and Equipment | Property and Equipment |
Goodwill and Intangible Assets | Goodwill and Intangible Assets – Intangibles – Goodwill and Other Note 3 – Business Combinations, Goodwill and Intangibles |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets – |
Revenue Recognition | Revenue Recognition The Company provides a right of return on product sales to certain distributors and other resellers under a product rotation program. Under this seldom-used program, once a quarter, a distributor or reseller is allowed to return products purchased during the prior 180 days for a total value generally not exceeding 15% of the distributor’s or reseller’s net purchases during the preceding quarter. The distributor or reseller is, however, required to place a new purchase order for an amount not less than the value of products returned under the stock rotation program. When products are returned, the associated revenue, cost of goods sold, inventory and accounts receivable originally recorded are reversed. When the new order is fulfilled, the revenue, associated cost of goods sold, inventory and accounts receivable are recorded and the product revenue is subject to the deferral analysis described below. In a small number of cases, the distributors are also permitted to return products for other business reasons. Revenue from product sales to distributors is not recognized until the return privilege has expired or until it can be determined with reasonable certainty that the return privilege has expired, which approximates when product is sold-through to customers of the Company’s distributors (dealers, system integrators, value-added resellers, and end-users) rather than when the product is initially shipped to a distributor. At each quarter-end, the Company evaluates the inventory in the channel through information provided by our distributors. The level of inventory in the channel will fluctuate up-ward or down-ward each quarter, based upon its distributors’ individual operations. Accordingly, at each quarter-end, the deferral for revenue and associated cost of goods sold are calculated and recorded based upon the actual channel inventory reported at quarter-end. Further, with respect to distributors and other channel partners not reporting the channel inventory, the revenue and associated cost of goods sold are deferred until the Company receives payment for the product sales made to such distributors or channel partners. The amount of deferred cost of goods sold is included in distributor channel inventories. The details of deferred revenue and associated cost of goods sold and gross profit are as follows: As of December 31, 2016 2015 Deferred revenue $ 3,882 $ 4,549 Deferred cost of goods sold 1,530 1,628 Deferred gross profit $ 2,352 $ 2,921 The Company offers rebates and market development funds to certain of its distributors, dealers/resellers, and end-users based upon the volume of product purchased by them. The Company records rebates as a reduction of revenue in accordance with GAAP. The Company provides, at its discretion, advance replacement units to end-users on defective units of certain products under warranty. Since the purpose of these units is not revenue generating, the Company tracks the units due from the end-user, until the defective unit has been returned. Any amount due from the customer upon failure to return the products is accounted as receivable only after establishing customer's failure to return the products. The inventory due from the customer is accounted at cost or market value whichever is lower. |
Sales and Similar Taxes | Sales and Similar Taxes - |
Shipping and Handling Costs | Shipping and Handling Costs – |
Warranty Costs | Warranty Costs The details of changes in the Company’s warranty accrual are as follows: Year Ended December 31, 2016 2015 2014 Balance at the beginning of year $ 288 $ 331 $ 338 Accruals/additions 361 442 511 Usage/claims (403 ) (485 ) (518 ) Balance at end of year $ 246 $ 288 $ 331 |
Advertising | Advertising |
Research and Product Development Costs | Research and Product Development Costs |
Income Taxes | Income Taxes Company’s income tax provision or benefit. As of December 31, 2016 and 2015, the Company had a valuation allowance of $1,404 and $1,071, respectively against foreign net operating losses, foreign intangible assets, capital losses carryforwards, and state research and development credits. The Company follows the provisions c o Income Taxes. Judgment is required in determining the provision for income taxes and related accruals, deferred tax assets and liabilities. In the ordinary course of business, there are transactions and calculations where the ultimate tax outcome is uncertain. Additionally, the Company’s tax returns are subject to audit by various tax authorities. Although the Company believes that its estimates are reasonable, actual results could differ from these estimates. |
Earnings Per Share | Earnings Per Share Year Ended December 31, 2016 2015 2014 Numerator: Net income $ 2,444 $ 6,776 $ 5,596 Denominator: Basic weighted average shares 9,021,980 9,127,385 9,166,769 Dilutive common stock equivalents using treasury stock method 284,054 467,274 414,557 Diluted weighted average shares 9,306,034 9,594,659 9,581,326 Basic earnings per common share: $ 0.27 $ 0.74 $ 0.61 Diluted earnings per common share: $ 0.26 $ 0.71 $ 0.58 Weighted average options outstanding 885,163 1,053,785 975,696 Anti-dilutive options not included in the computation 323,644 177,125 209,751 |
Share-Based Payment | Share-Based Payment |
Recent Accounting Pronouncements | Recent Accounting Pronouncements - In May 2015, 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 permitted. The updated standard becomes effective for the Company on January 1, 2018. The Company expects to adopt this accounting standard update on a modified retrospective basis in the first quarter of fiscal 2019, and it is currently evaluating the impact of this accounting standard update on the consolidated financial statements. On February 25, 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 and it is currently evaluating the impact that ASU 2016-09 will have on our consolidated financial statements. |
Business Description, Basis o23
Business Description, Basis of Presentation and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Allowance for Doubtful Accounts Activity | The Company’s allowance for doubtful accounts activity for the years ended as follows: Year Ended December 31, 2016 2015 2014 Balance at beginning of the year $ 54 $ 58 $ 129 Allowance increase (decrease) 148 36 (49 ) Write offs, net of recoveries (15 ) (40 ) (22 ) Balance at end of the year $ 187 $ 54 $ 58 |
Schedule of Deferred Revenue and Associated Cost of Goods Sold and Gross Profit | The details of deferred revenue and associated cost of goods sold and gross profit are as follows: As of December 31, 2016 2015 Deferred revenue $ 3,882 $ 4,549 Deferred cost of goods sold 1,530 1,628 Deferred gross profit $ 2,352 $ 2,921 |
Schedule of Product Warranty Liability | The details of changes in the Company’s warranty accrual are as follows: Year Ended December 31, 2016 2015 2014 Balance at the beginning of year $ 288 $ 331 $ 338 Accruals/additions 361 442 511 Usage/claims (403 ) (485 ) (518 ) Balance at end of year $ 246 $ 288 $ 331 |
Schedule of Basic and Earnings Per Common Share | The following table sets forth the computation of basic and diluted earnings per common share: Year Ended December 31, 2016 2015 2014 Numerator: Net income $ 2,444 $ 6,776 $ 5,596 Denominator: Basic weighted average shares 9,021,980 9,127,385 9,166,769 Dilutive common stock equivalents using treasury stock method 284,054 467,274 414,557 Diluted weighted average shares 9,306,034 9,594,659 9,581,326 Basic earnings per common share: $ 0.27 $ 0.74 $ 0.61 Diluted earnings per common share: $ 0.26 $ 0.71 $ 0.58 Weighted average options outstanding 885,163 1,053,785 975,696 Anti-dilutive options not included in the computation 323,644 177,125 209,751 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Dec. 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 December 31, 2016 and 2015 were as follows: Amortized cost Gross unrealized holding gains Gross unrealized holding losses Estimated fair value December 31, 2016 Available-for-sale securities: Corporate bonds and notes $ 20,028 $ 64 $ (122 ) $ 19,970 Municipal bonds 6,463 6 (44 ) 6,425 Total available-for-sale securities $ 26,491 $ 70 $ (166 ) $ 26,395 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 |
Schedule of Maturities of Marketable Securities | Maturities of marketable securities classified as available-for-sale securities were as follows at December 31, 2016: Amortized Estimated cost fair value Due within one year $ 5,029 $ 5,030 Due after one year through five years 21,353 21,256 Due after five years through ten years 109 109 Total available-for-sale securities $ 26,491 $ 26,395 |
Schedule of Available-for-sale Securities | The available-for-sale marketable securities in a gross unrealized loss position as of December 31, 2016 are summarized as follows: Less than 12 months More than 12 months Total Estimated fair value Gross unrealized holding losses Estimated fair value Gross unrealized holding losses Estimated fair value Gross unrealized holding losses As of December 31, 2016 Corporate bonds and notes $ 10,294 $ (112 ) 1,029 $ (9 ) $ 11,323 $ (121 ) Municipal bonds 3,910 (45 ) — — 3,910 (45 ) $ 14,204 $ (157 ) $ 1,029 $ (9 ) $ 15,233 $ (166 ) |
Business Combinations, Goodwi25
Business Combinations, Goodwill and Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Acquisition [Line Items] | |
Schedule of Goodwill | Changes in the carrying amount of the Company’s goodwill for the years ended December 31, 2016, 2015, and 2014 were as follows: 2016 2015 2014 Balance as of January 1, Goodwill $ 12,724 $ 12,724 $ 3,472 Accumulated impairment losses — — — 12,724 12,724 3,472 Goodwill acquired during the year — — 9,252 Balance as of December 31, Goodwill 12,724 12,724 12,724 Accumulated impairment losses — — — $ 12,724 $ 12,724 $ 12,724 |
Schedule of Intangible Assets | Intangible assets as of December 31, 2016, and 2015 consisted of the following: Estimated As of December 31, useful lives 2016 2015 Tradename 5 to 7 years $ 555 $ 555 Patents and technological know-how 10 years 6,010 5,850 Proprietary software 3 to 15 years 4,341 4,341 Other 3 to 5 years 324 324 11,230 11,230 Accumulated amortization (5,553 ) (4,432 ) Total intangible assets, net $ 5,677 $ 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, 2017 $ 928 2018 853 2019 781 2020 602 2021 602 Thereafter 1,911 $ 5,677 |
Sabine, Inc. [Member] | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisition, Consideration Transferred | The following table summarizes the consideration paid for the acquisition: Consideration Cash $ 8,141 Common stock 1,679 Contingent consideration 657 Total $ 10,477 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The fair value of identified assets and liabilities acquired and goodwill is as follows: Fair value Cash $ 125 Accounts receivable 255 Inventories 844 Prepaid and other 105 Intangibles 3,970 Property and equipment 292 Other long-term assets 11 Goodwill 5,510 Deferred tax asset 245 Trade accounts payable (420 ) Accrued liabilities (405 ) Stock registration costs (55 ) Total $ 10,477 |
Spontania [Member] | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The fair value of identified assets and liabilities acquired from the Spontania acquisition was as follows: Fair value Intangibles $ 1,335 Property and equipment 47 Goodwill 3,741 Accrued liabilities (71 ) Total $ 5,052 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Net of Reserves | Inventories, net of reserves, consisted of the following: As of December 31, 2016 2015 Current: Raw materials $ 2,291 $ 2,735 Finished goods 9,086 10,712 $ 11,377 $ 13,447 Long-term: Raw materials $ 599 $ 375 Finished goods 1,065 1,643 $ 1,664 $ 2,018 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Major classifications of property and equipment and estimated useful lives were as follows: Estimated As of December 31, useful lives 2016 2015 Office furniture and equipment 3 to 10 years $ 4,835 $ 4,412 Leasehold improvements 1 to 6 years 1,495 1,488 Manufacturing and test equipment 2 to 10 years 2,537 2,483 8,867 8,383 Accumulated depreciation and amortization (7,354 ) (6,794 ) Property and equipment, net $ 1,513 $ 1,589 |
Leases and Deferred Rent (Table
Leases and Deferred Rent (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease payments under non-cancellable operating leases with initial terms of one year or more are as follows: Years ending December 31, 2017 $ 928 2018 872 2019 467 2020 239 2021 204 Total minimum lease payments $ 2,710 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following: As of December 31, 2016 2015 Accrued salaries and other compensation $ 1,098 $ 1,170 Sales and marketing programs 319 477 Product warranty 246 288 Other accrued liabilities 231 308 Total $ 1,894 $ 2,243 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation - Black-Scholes Assumptions | In applying the Black-Scholes methodology to the options granted, the Company used the following assumptions: Year ended December 31, 2016 2015 2014 Risk-free interest rate, average 1.52 % 2.00 % 2.20 % Expected option life, average 6.1 years 6.1 years 8.2 years Expected price volatility, average 43.75 % 44.30 % 47.60 % Expected dividend yield 1.71 % 1.10 % -% |
Schedule of Stock Option Activity | The following table shows the stock option activity: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value As of December 31, 2013 1,111,274 $ 5.15 Granted 193,500 8.83 Expired and canceled (29,532 ) 6.87 Forfeited prior to vesting (729 ) 8.88 Exercised (234,432 ) 5.72 As of December 31, 2014 1,040,081 $ 5.65 5.60 $ 4,286 Granted 56,666 13.03 Reinstated 4,583 4.47 Expired and canceled (1,000 ) 3.42 Forfeited prior to vesting (15,252 ) 7.85 Exercised (56,143 ) 5.51 As of December 31, 2015 1,028,935 $ 6.03 4.73 $ 7,104 Granted 217,700 11.73 Expired and canceled (4,186 ) 12.03 Forfeited prior to vesting (17,360 ) 10.67 Exercised (374,857 ) 4.46 As of December 31, 2016 850,232 $ 8.06 5.78 $ 3,001 Vested and Expected to Vest at December 31, 2014 1,040,081 $ 5.65 5.60 $ 4,286 Vested at December 31, 2014 730,016 $ 4.67 4.15 $ 3,271 Vested and Expected to Vest at December 31, 2015 1,028,935 $ 6.03 4.73 $ 7,104 Vested at December 31, 2015 820,022 $ 5.10 3.74 $ 6,419 Vested and Expected to Vest at December 31, 2016 850,232 $ 8.06 5.78 $ 3,001 Vested at December 31, 2016 552,097 $ 6.33 4.09 $ 2,843 |
Schedule of Share-based Compensation, Employee Stock Purchase Plan, Activity | Shares purchased and compensation expense associated Employee Stock Purchase Plans were as follows: 2016 2015 2014 Shares purchased under ESPP plans 9,140 14,982 82 Plan compensation expense $ 18 $ 31 $ - |
Schedule of Current Stock Repurchase Program | During the twelve months ended December 31, 2016, we acquired the following shares of common stock under the current stock repurchase program: $ in thousands except per share price Total Number of Shares Purchased (a) Average Price Paid per Share (b) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (c) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs ($ thousands) (d) March 9 to March 31 33,600 $ 12.02 33,600 $ 9,596 April 1 to June 30 330,515 11.25 330,515 5,885 July 1 to September 30 91,965 11.16 91,965 4,861 October 1 to December 31 86,179 11.00 86,179 3,914 Total 542,259 $ 11.25 542,259 |
Significant Customers (Tables)
Significant Customers (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Risks and Uncertainties [Abstract] | |
Schedules of Concentration of Risk, by Risk Factor of Sales Revenue and Accounts Receivable | Sales to significant customers that represented more than 10 percent of total revenues are as follows: Year ended December 31, 2016 2015 2014 Customer A 16.3 % 14.2 % 16.0 % Customer B - %* 10.4 % - %* Total 16.3 % 24.6 % 16.0 % * Sales didn’t exceed 10% of the revenue. The following table summarizes the percentage of total gross accounts receivable from significant customers: As of December 31, 2016 2015 Customer A 13.40 % 18 % Customer B 11.70 % 16 % Total 25.10 % 34 % |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Assets and Liabilities Measured On Recurring Basis | The following tables set forth the fair value of the financial instruments re-measured by the Company as of December 31, 2016 and 2015: Level 1 Level 2 Level 3 Total December 31, 2016 Corporate bonds and notes $ — $ 19,970 $ — $ 19,970 Municipal bonds — 6,425 — 6,425 Total $ — $ 26,395 $ — $ 26,395 December 31, 2015 Corporate bonds and notes $ — $ 20,744 $ — $ 20,744 Municipal bonds — 5,621 — 5,621 Total $ — $ 26,365 $ — $ 26,365 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Before Income Tax, Domestic and Foreign | Consolidated income before taxes for domestic and foreign operations consisted of the following: Year ended December 31, 2016 2015 2014 Domestic $ 6,332 $ 13,295 $ 9,615 Foreign (2,454 ) (2,744 ) (1,386 ) Total $ 3,878 $ 10,551 $ 8,229 |
Schedule of Components of Provision for Income Taxes | The Company’s (provision) for income taxes consisted of the following: Year ended December 31, 2016 2015 2014 Current: Federal $ (593 ) $ (3,386 ) $ (2,750 ) State 63 (344 ) (173 ) Foreign (37 ) — (109 ) Total current (567 ) (3,730 ) (3,032 ) Deferred: Federal (633 ) (220 ) 379 State (17 ) (10 ) 27 Foreign 115 470 401 (535 ) 240 807 Change in valuation allowance (332 ) (285 ) (408 ) Total deferred (867 ) (45 ) 399 (Provision) for income taxes $ (1,434 ) $ (3,775 ) $ (2633 ) |
Schedule of Income Tax Provision for Federal Statutory Income Tax Rate | The income tax (provision) differs from that computed at the federal statutory corporate income tax rate as follows: Year ended December 31, 2016 2015 2014 Tax (provision) at Federal statutory rate $ (1,318 ) $ (3,587 ) $ (2,798 ) State income tax (provision), net of federal benefit (148 ) (408 ) (257 ) Research and development tax credits 423 456 549 Foreign earnings or losses taxed at different rates (292 ) (231 ) (102 ) Other 233 280 383 Change in valuation allowance (332 ) (285 ) (408 ) Tax (provision) $ (1,434 ) $ (3,775 ) $ (2,633 ) |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of significant temporary differences representing net deferred tax assets and liabilities consisted of the following: 2016 2015 Deferred revenue $ 845 $ 1,019 Basis difference in intangible assets (56 ) 26 Inventory reserve 2,650 2,452 Net operating loss carryforwards 1,391 1,347 Research and development tax credits 88 — Accrued expenses 92 165 Stock-based compensation 584 672 Allowance for sales returns and doubtful accounts 70 20 Difference in property and equipment basis (350 ) (423 ) Other 743 886 Total net deferred income tax asset 6,057 6,164 Less: Valuation allowance (1,403 ) (1,071 ) Net deferred income tax asset (liability) $ 4,654 $ 5,093 |
Schedule of Reconciliation of Uncertain Tax Positions | A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax positions is as follows: Year ended December 31, 2016 2015 Balance - beginning of year $ 1,126 $ 1,678 Additions based on tax positions related to the current year 16 52 Additions for tax positions of prior years 47 5 Reductions for tax positions of prior years - (503 ) Settlements - — Lapse in statutes of limitations - (106 ) Uncertain tax positions, ending balance $ 1,189 $ 1,126 |
Geographic Sales Information (T
Geographic Sales Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Geographic Area | The Company’s revenues are substantially denominated in U.S. dollars and are summarized geographically as follows: Year ended December 31, 2016 2015 2014 United States $ 31,838 $ 39,563 $ 39,837 All other countries 16,799 18,233 18,072 Total $ 48,637 $ 57,796 $ 57,909 |
Business Description, Basis o35
Business Description, Basis of Presentation and Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Marketable securities recognized, other than temporary impairments, amount | $ 0 | $ 0 | $ 0 |
Value of advance replacement units | $ 21 | 75 | |
Product return policy, number of days | 180 days | ||
Product return policy not to exceed net purchases during preceeding quarter, percent | 15.00% | ||
Advertising expenses | $ 836 | 728 | $ 768 |
Valuation allowance | $ 1,404 | $ 1,071 | |
Minimum [Member] | |||
Property and equipment estimated useful lives | 3 years | ||
Maximum [Member] | |||
Property and equipment estimated useful lives | 10 years |
Business Description, Basis o36
Business Description, Basis of Presentation and Significant Accounting Policies - Schedule of Allowance for Doubtful Accounts Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Balance at beginning of the year | $ 54 | $ 58 | $ 129 |
Allowance increase (decrease) | 148 | 36 | (49) |
Write offs, net of recoveries | (15) | (40) | (22) |
Balance at end of the year | $ 187 | $ 54 | $ 58 |
Business Description, Basis o37
Business Description, Basis of Presentation and Significant Accounting Policies - Schedule of Deferred Revenue and Associated Cost of Goods Sold and Gross Profit (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Deferred revenue | $ 3,882 | $ 4,549 |
Deferred cost of goods sold | 1,530 | 1,628 |
Deferred gross profit | $ 2,352 | $ 2,921 |
Business Description, Basis o38
Business Description, Basis of Presentation and Significant Accounting Policies - Schedule of Product Warranty Liability (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Balance at the beginning of year | $ 288 | $ 331 | $ 338 |
Accruals/additions | 361 | 442 | 511 |
Usage/claims | (403) | (485) | (518) |
Balance at end of year | $ 246 | $ 288 | $ 331 |
Business Description, Basis o39
Business Description, Basis of Presentation and Significant Accounting Policies - Schedule of Basic and Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Net income | $ 2,444 | $ 6,776 | $ 5,596 |
Basic weighted average shares | 9,021,980 | 9,127,385 | 9,166,769 |
Dilutive common stock equivalents using treasury stock method | 284,054 | 467,274 | 414,557 |
Diluted weighted average shares | 9,306,034 | 9,594,659 | 9,581,326 |
Basic earnings per common share: | $ 0.27 | $ 0.74 | $ 0.61 |
Diluted earnings per common share: | $ 0.26 | $ 0.71 | $ 0.58 |
Weighted average options outstanding | 885,163 | 1,053,785 | 975,696 |
Anti-dilutive options not included in the computation | 323,644 | 177,125 | 209,751 |
Marketable Securities - Schedul
Marketable Securities - Schedule of Available-for-sale Securities Reconciliation (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Amortized cost | $ 26,491 | $ 26,435 |
Gross unrealized holding gains | 70 | 68 |
Gross unrealized holding losses | (166) | (138) |
Estimated fair value | 26,395 | 26,365 |
Corporate Bonds and Notes [Member] | ||
Amortized cost | 20,028 | 20,827 |
Gross unrealized holding gains | 64 | 50 |
Gross unrealized holding losses | (122) | (133) |
Estimated fair value | 19,970 | 20,744 |
Municipal Bonds [Member] | ||
Amortized cost | 6,463 | 5,608 |
Gross unrealized holding gains | 6 | 18 |
Gross unrealized holding losses | (44) | (5) |
Estimated fair value | $ 6,425 | $ 5,621 |
Marketable Securities - Sched41
Marketable Securities - Schedule of Maturities of Marketable Securities (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Amortized cost Due within one year | $ 5,029 |
Amortized cost Due after one year through five years | 21,353 |
Amortized cost Due after five years through ten years | 109 |
Amortized cost Total available-for-sale securities | 26,491 |
Estimated fair value Due within one year | 5,030 |
Estimated fair value Due after one year through five years | 21,256 |
Estimated fair value Due after five years through ten years | 109 |
Estimated fair value Total available-for-sale securities | $ 26,395 |
Marketable Securities - Sched42
Marketable Securities - Schedule of Available-for-sale Securities (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Less than 12 Months - Estimated Fair Value | $ 14,204 |
Less than 12 Months - Gross Unrealized Holding Losses | (157) |
More than 12 Months - Estimated Fair Value | 1,029 |
More than 12 Months - Gross Unrealized Holding Losses | (9) |
Total Estimated Fair Value | 15,233 |
Total Gross Unrealized Holding Losses | (166) |
Corporate Bonds and Notes [Member] | |
Less than 12 Months - Estimated Fair Value | 10,294 |
Less than 12 Months - Gross Unrealized Holding Losses | (112) |
More than 12 Months - Estimated Fair Value | 1,029 |
More than 12 Months - Gross Unrealized Holding Losses | (9) |
Total Estimated Fair Value | 11,323 |
Total Gross Unrealized Holding Losses | (121) |
Municipal Bonds [Member] | |
Less than 12 Months - Estimated Fair Value | 3,910 |
Less than 12 Months - Gross Unrealized Holding Losses | (45) |
More than 12 Months - Estimated Fair Value | |
More than 12 Months - Gross Unrealized Holding Losses | |
Total Estimated Fair Value | 3,910 |
Total Gross Unrealized Holding Losses | $ (45) |
Business Combinations, Goodwi43
Business Combinations, Goodwill and Intangibles (Details Narrative) € in Thousands, $ in Thousands | Apr. 02, 2014USD ($) | Apr. 02, 2014EUR (€) | Mar. 07, 2014USD ($)shares | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Goodwill | $ 12,724 | $ 12,724 | $ 12,724 | $ 3,472 | |||
Total acquisition related expenses | 588 | ||||||
Amortization of intangibles | $ 1,121 | $ 1,258 | $ 1,210 | ||||
Sabine, Inc. [Member] | |||||||
Consideration paid | $ 10,477 | ||||||
Goodwill | 5,510 | ||||||
Sabine, Inc. [Member] | Cash [Member] | |||||||
Consideration paid | 8,141 | ||||||
Sabine, Inc. [Member] | Earn-out Payments [Member] | |||||||
Consideration paid | 657 | ||||||
Sabine, Inc. [Member] | Restricted Stock [Member] | |||||||
Consideration paid | $ 1,679 | ||||||
Number of shares of restricted common stock issued | shares | 150,000 | ||||||
Spontania [Member] | |||||||
Consideration paid | $ 5,100 | ||||||
Goodwill | $ 3,741 | ||||||
Spontania [Member] | EURO [Member] | |||||||
Consideration paid | € | € 3,660 |
Business Combinations, Goodwi44
Business Combinations, Goodwill and Intangibles - Schedule of Business Acquisition, Consideration Transferred (Details) - Sabine, Inc. [Member] $ in Thousands | Mar. 07, 2014USD ($) |
Consideration paid | $ 10,477 |
Cash [Member] | |
Consideration paid | 8,141 |
Common Stock [Member] | |
Consideration paid | 1,679 |
Contingent Consideration [Member] | |
Consideration paid | $ 657 |
Business Combinations, Goodwi45
Business Combinations, Goodwill and Intangibles - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Apr. 02, 2014 | Mar. 07, 2014 |
Sabine, Inc. [Member] | ||
Business Acquisition [Line Items] | ||
Cash | $ 125 | |
Accounts receivable | 255 | |
Inventories | 844 | |
Prepaid and other | 105 | |
Intangibles | 3,970 | |
Property and equipment | 292 | |
Other long-term assets | 11 | |
Goodwill | 5,510 | |
Deferred tax asset | 245 | |
Trade accounts payable | (420) | |
Accrued liabilities | (405) | |
Stock registration costs | (55) | |
Total | $ 10,477 | |
Spontania [Member] | ||
Business Acquisition [Line Items] | ||
Intangibles | $ 1,335 | |
Property and equipment | 47 | |
Goodwill | 3,741 | |
Accrued liabilities | (71) | |
Total | $ 5,052 |
Business Combinations, Goodwi46
Business Combinations, Goodwill and Intangibles - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Business Combinations [Abstract] | |||
Beginning goodwill, gross | $ 12,724 | $ 12,724 | $ 3,472 |
Beginning accumulated impairment losses | |||
Balance at the beginning of the year | 12,724 | 12,724 | 3,472 |
Goodwill acquired during the year | 9,252 | ||
Ending goodwill, gross | 12,724 | 12,724 | 12,724 |
Ending accumulated impairment losses | |||
Balance at end of year | $ 12,724 | $ 12,724 | $ 12,724 |
Business Combinations, Goodwi47
Business Combinations, Goodwill and Intangibles - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Total intangible assets | $ 11,230 | $ 11,230 |
Accumulated amortization | (5,553) | (4,432) |
Total intangible assets, net | 5,677 | 6,638 |
Trade Names [Member] | ||
Total intangible assets | $ 555 | 555 |
Trade Names [Member] | Minimum [Member] | ||
Estimated useful lives | 5 years | |
Trade Names [Member] | Maximum [Member] | ||
Estimated useful lives | 7 years | |
Patents and Technological Know-how [Member] | ||
Estimated useful lives | 10 years | |
Total intangible assets | $ 6,010 | 5,850 |
Proprietary Software [Member] | ||
Total intangible assets | $ 4,341 | 4,341 |
Proprietary Software [Member] | Minimum [Member] | ||
Estimated useful lives | 3 years | |
Proprietary Software [Member] | Maximum [Member] | ||
Estimated useful lives | 15 years | |
Other Intangible Assets [Member] | ||
Total intangible assets | $ 324 | $ 324 |
Other Intangible Assets [Member] | Minimum [Member] | ||
Estimated useful lives | 3 years | |
Other Intangible Assets [Member] | Maximum [Member] | ||
Estimated useful lives | 5 years |
Business Combinations, Goodwi48
Business Combinations, Goodwill and Intangibles - Schedule of Estimated Future Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,017 | $ 928 | |
2,018 | 853 | |
2,019 | 781 | |
2,020 | 602 | |
2,021 | 602 | |
Thereafter | 1,911 | |
Finite-Lived Intangible Assets, Net | $ 5,677 | $ 6,638 |
Inventories (Details Narrative)
Inventories (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Inventory Disclosure [Abstract] | |||
Current finished goods do not include distributor channel inventories amount | $ 1,530 | $ 1,628 | |
Losses incurred on valuation of inventory and write-off of obsolete inventory | $ 653 | $ 496 | $ 946 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory, Net of Reserves (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 2,291 | $ 2,735 |
Finished goods | 9,086 | 10,712 |
Current Inventories | 11,377 | 13,447 |
Raw materials | 599 | 375 |
Finished goods | 1,065 | 1,643 |
Long-term Inventories | $ 1,664 | $ 2,018 |
Property and Equipment (Details
Property and Equipment (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense on property and equipment | $ 723 | $ 801 | $ 761 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Property and equipment, gross | $ 8,867 | $ 8,383 |
Accumulated depreciation and amortization | (7,354) | (6,794) |
Property and equipment, net | $ 1,513 | 1,589 |
Minimum [Member] | ||
Property and equipment, Estimated useful life | 3 years | |
Maximum [Member] | ||
Property and equipment, Estimated useful life | 10 years | |
Office Furniture and Equipment [Member] | ||
Property and equipment, gross | $ 4,835 | 4,412 |
Office Furniture and Equipment [Member] | Minimum [Member] | ||
Property and equipment, Estimated useful life | 3 years | |
Office Furniture and Equipment [Member] | Maximum [Member] | ||
Property and equipment, Estimated useful life | 10 years | |
Leasehold Improvements [Member] | ||
Property and equipment, gross | $ 1,495 | 1,488 |
Leasehold Improvements [Member] | Minimum [Member] | ||
Property and equipment, Estimated useful life | 1 year | |
Leasehold Improvements [Member] | Maximum [Member] | ||
Property and equipment, Estimated useful life | 6 years | |
Manufacturing and Test Equipment [Member] | ||
Property and equipment, gross | $ 2,537 | $ 2,483 |
Manufacturing and Test Equipment [Member] | Minimum [Member] | ||
Property and equipment, Estimated useful life | 2 years | |
Manufacturing and Test Equipment [Member] | Maximum [Member] | ||
Property and equipment, Estimated useful life | 10 years |
Leases and Deferred Rent (Detai
Leases and Deferred Rent (Details Narrative) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)ft² | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Rent expense | $ | $ 1,099 | $ 1,420 | $ 1,236 |
Amortization of deferred rent | $ | $ 73 | $ 95 | $ 79 |
Gainsville, Florida [Member] | Office Building [Member] | |||
Area leased | 5,000 | ||
Lease expiration date | February 2,021 | ||
Lease renewal term | 10 years | ||
Salt Lake City, Utah [Member] | Office Building [Member] | |||
Area leased | 31,000 | ||
Lease expiration date | May 2,019 | ||
Salt Lake City, Utah [Member] | Warehouse [Member] | |||
Area leased | 40,000 | ||
Lease expiration date | December 2,021 | ||
Austin, Texas [Member] | Office Building [Member] | |||
Area leased | 7,070 | ||
Lease expiration date | October 2,019 |
Leases and Deferred Rent - Sche
Leases and Deferred Rent - Schedule of Future Minimum Rental Payments for Operating Leases (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Leases [Abstract] | |
2,017 | $ 928 |
2,018 | 872 |
2,019 | 467 |
2,020 | 239 |
2,021 | 204 |
Total minimum lease payments | $ 2,710 |
Accrued Liabilities - Schedule
Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Payables and Accruals [Abstract] | ||
Accrued salaries and other compensation | $ 1,098 | $ 1,170 |
Sales and marketing programs | 319 | 477 |
Product warranty | 246 | 288 |
Other accrued liabilities | 231 | 308 |
Total | $ 1,894 | $ 2,243 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Long-term purchase commitment, amount | $ 13,563 | ||
Uncertain tax positions | 1,189 | $ 1,126 | $ 1,678 |
Attorneys' fees | |||
Pretax gross expenses | $ 927 |
Share-Based Payments (Details N
Share-Based Payments (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | Mar. 17, 2016 | Dec. 31, 1999 | Jun. 30, 2005 | Jun. 30, 2003 | Jun. 30, 2002 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2002 | Mar. 09, 2016 | Dec. 12, 2014 | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of stock options granted | 217,700 | 56,666 | 193,500 | |||||||||
Stock options vesting description | The options granted subsequent to September 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 Companys 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. | |||||||||||
Share-based payment award, expiration period | 10 years | |||||||||||
Number of stock options shares outstanding | 837,232 | 1,028,935 | 1,040,081 | 1,111,274 | ||||||||
Weighted average per share fair value of option granted | $ 4.27 | $ 5.27 | $ 4.85 | |||||||||
Total intrinsic value of options exercised | $ 2,824 | $ 404 | $ 1,337 | |||||||||
Total pre-tax compensation cost related to stock options | 628 | 552 | 401 | |||||||||
Tax benefit compensation cost related to stock options | 107 | 41 | 211 | |||||||||
Unrecognized compensation cost related to stock options | $ 1,127 | |||||||||||
Unrecognized compensation cost related to stock options, recognized period | 2 years 2 months 9 days | |||||||||||
Percentage of shares excess of combined voting power of parents and subsidiary | 5.00% | |||||||||||
Number of stock options fair value purchased under the plan during the period | $ 87 | $ 155 | ||||||||||
Percentage of common stock purchase of period at price equal to fair market value | 85.00% | |||||||||||
Percentage of fair value of common stock discount | 15.00% | |||||||||||
Stock repurchase program share amount | $ 2,598 | $ 10,000 | ||||||||||
Stock repurchase program shares | 542,259,000 | 272,767 | ||||||||||
Dividend per share | $ 0.05 | |||||||||||
Dividend declared date | Jan. 31, 2017 | |||||||||||
Dividend date to be paid | Mar. 1, 2017 | |||||||||||
Dividend date of record | Feb. 15, 2017 | |||||||||||
Average purchase price per share | $ 11.25 | |||||||||||
Directors And Officers [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock options vested period | 3 years | |||||||||||
Other Employees [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock options vested period | 4 years | |||||||||||
Board of Directors [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Dividend declared date | Mar. 1, 2017 | |||||||||||
Dividend date to be paid | Jun. 1, 2017 | |||||||||||
Board of Directors [Member] | Minimum [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Dividend per share | $ 0.05 | |||||||||||
Board of Directors [Member] | Maximum [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Dividend per share | $ 0.07 | |||||||||||
Board of Directors [Member] | Maximum [Member] | March 1, 2017 [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock repurchase program share amount | $ 10,000 | |||||||||||
1998 Incentive Plan [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of stock options granted | 1,066,000 | 1,248,250 | ||||||||||
Stock options vested period | 9 years 9 months 18 days | 6 years | ||||||||||
Stock options accelerated vesting shares | 300,494 | 637,089 | ||||||||||
Maximum number of stock options grants | 2,500,000 | |||||||||||
Number of stock options shares outstanding | 150,000 | |||||||||||
Number of stock options shares authorized and unissued | 0 | |||||||||||
1998 Incentive Plan [Member] | Minimum [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock options vested period | 3 years | |||||||||||
1998 Incentive Plan [Member] | Maximum [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock options vested period | 4 years | |||||||||||
2007 Equity Incentive Plan [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Maximum number of stock options grants | 2,000,000 | |||||||||||
Number of stock options shares outstanding | 700,232 | |||||||||||
Number of stock options shares authorized and unissued | 826,268 | |||||||||||
2015 Employee Stock Purchase Plan [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of stock options granted | 475,893 | |||||||||||
Number of shares available for offerings | 500,000 | |||||||||||
Employee Stock Purchase Plan [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of stock options shares purchased under the plan during the period | 9,140 | 14,982 | 82 | |||||||||
Employee Stock Purchase Plan [Member] | Maximum [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of stock options shares purchased under the plan during the period | 2,500 | |||||||||||
Number of stock options fair value purchased under the plan during the period | $ 25 | |||||||||||
1998 Incentive Plan and 2007 Equity Incentive Plan [Member] | Employees and Directors [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock repurchase program shares | 225,542 | |||||||||||
Average purchase price per share | $ 7.77 |
Share-Based Payments - Schedule
Share-Based Payments - Schedule of Share-based Compensation - Black-scholes Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Risk-free interest rate, average | 1.52% | 2.00% | 2.20% |
Expected option life, average | 6 years 1 month 6 days | 6 years 1 month 6 days | 8 years 2 months 12 days |
Expected price volatility, average | 43.75% | 44.30% | 47.60% |
Expected dividend yield | 1.71% | 1.10% | 0.00% |
Share-Based Payments - Schedu59
Share-Based Payments - Schedule of Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Number of shares Options, Outstanding at beginning of period | 1,028,935 | 1,040,081 | 1,111,274 |
Number of shares Options, Granted | 217,700 | 56,666 | 193,500 |
Number of shares Options, Reinstated | 4,583 | ||
Number of shares Options, Expired and canceled | (4,186) | (1,000) | (29,532) |
Number of shares Options, Forfeited prior to vesting | (17,360) | (15,252) | (729) |
Number of shares Options, Exercised | (374,857) | (56,143) | (234,432) |
Number of shares Options, Outstanding at end of period | 837,232 | 1,028,935 | 1,040,081 |
Number of shares Options, Vested and Expected to Vest | 850,232 | 1,028,935 | 1,040,081 |
Number of shares Options, Vested at end of period | 552,097 | 820,022 | 730,016 |
Weighted Average Exercise Price, Outstanding at beginning of period | $ 6.03 | $ 5.65 | $ 5.15 |
Weighted Average Exercise Price, Granted | 11.73 | 13.03 | 8.83 |
Weighted Average Exercise Price, Reinstated | 4.47 | ||
Weighted Average Exercise Price, Expired and canceled | 12.03 | 3.42 | 6.87 |
Weighted Average Exercise Price, Forfeited prior to vesting | 10.67 | 7.85 | 8.88 |
Weighted Average Exercise Price, Exercised | 4.46 | 5.51 | 5.72 |
Weighted Average Exercise Price, Outstanding at end of period | 8.06 | 6.03 | 5.65 |
Weighted Average Exercise Price, Vested and Expected to Vest | 8.06 | 6.03 | 5.65 |
Weighted Average Exercise Price, Vested at end of period | $ 6.33 | $ 5.10 | $ 4.67 |
Weighted Average Remaining Contractual Term (Years) | 5 years 9 months 11 days | 4 years 8 months 23 days | 5 years 7 months 6 days |
Weighted Average Remaining Contractual Term (Years), Vested and Expected to Vest | 5 years 9 months 11 days | 4 years 8 months 23 days | 5 years 7 months 6 days |
Weighted Average Remaining Contractual Term (Years), Vested | 4 years 1 month 2 days | 3 years 8 months 27 days | 4 years 1 month 24 days |
Aggregate Intrinsic Value | $ 3,001 | $ 7,104 | $ 4,286 |
Aggregate Intrinsic Value, Vested and Expected to Vest | 3,001 | 7,104 | 4,286 |
Aggregate Intrinsic Value, Vested | $ 2,843 | $ 6,419 | $ 3,271 |
Share-Based Payments - Schedu60
Share-Based Payments - Schedule of Share-based Compensation, Employee Stock Purchase Plan, Activity (Details) - Employee Stock Purchase Plan [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Shares purchased under ESPP plans | 9,140 | 14,982 | 82 |
Plan compensation expense | $ 18 | $ 31 |
Share-Based Payments - Schedu61
Share-Based Payments - Schedule of Current Stock Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2014 | |
Total Number of Shares Purchased | 542,259,000 | 272,767 |
Average Price Paid per Share | $ 11.25 | |
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | 542,259,000 | |
March 9 to March 31 [Member] | ||
Total Number of Shares Purchased | 33,600,000 | |
Average Price Paid per Share | $ 12.02 | |
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | 33,600,000 | |
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | $ 9,596 | |
April 1 to June 30 [Member] | ||
Total Number of Shares Purchased | 330,515,000 | |
Average Price Paid per Share | $ 11.25 | |
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | 330,515,000 | |
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | $ 5,885 | |
July 1 to September 30 [Member] | ||
Total Number of Shares Purchased | 91,965,000 | |
Average Price Paid per Share | $ 11.16 | |
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | 91,965,000 | |
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | $ 4,861 | |
October 1 to December 31 [Member] | ||
Total Number of Shares Purchased | 86,179,000 | |
Average Price Paid per Share | $ 11 | |
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | 86,179,000 | |
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | $ 3,914 |
Significant Customers - Schedul
Significant Customers - Schedules of Concentration of Risk, by Risk Factor of Sales Revenue and Accounts Receivable (Details) | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Concentration risk, percentage | 10.00% | ||||
Sales Revenues [Member] | |||||
Concentration risk, percentage | 16.30% | 24.60% | 16.00% | ||
Sales Revenues [Member] | Customer A [Member] | |||||
Concentration risk, percentage | 16.30% | 14.20% | 16.00% | ||
Sales Revenues [Member] | Customer B [Member] | |||||
Concentration risk, percentage | 0.00% | [1] | 10.40% | 0.00% | [1] |
Accounts Receivable [Member] | |||||
Concentration risk, percentage | 25.10% | 34.00% | |||
Accounts Receivable [Member] | Customer A [Member] | |||||
Concentration risk, percentage | 13.40% | 18.00% | |||
Accounts Receivable [Member] | Customer B [Member] | |||||
Concentration risk, percentage | 11.70% | 16.00% | |||
[1] | Sales didn't exceed 10% of the revenue |
Significant Customers - Sched63
Significant Customers - Schedules of Concentration of Risk, by Risk Factor of Sales Revenue and Accounts Receivable (Details) (Parenthetical) | 12 Months Ended |
Dec. 31, 2016 | |
Risks and Uncertainties [Abstract] | |
Concentration risk, percentage | 10.00% |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Investments, Fair Value Disclosure | $ 26,395 | $ 26,365 |
Corporate Bonds and Notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments, Fair Value Disclosure | 19,970 | 20,744 |
Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments, Fair Value Disclosure | 6,425 | 5,621 |
Fair Value, Inputs, Level 1 [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments, Fair Value Disclosure | ||
Fair Value, Inputs, Level 1 [Member] | Corporate Bonds and Notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments, Fair Value Disclosure | ||
Fair Value, Inputs, Level 1 [Member] | Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments, Fair Value Disclosure | ||
Fair Value, Inputs, Level 2 [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments, Fair Value Disclosure | 26,395 | 26,365 |
Fair Value, Inputs, Level 2 [Member] | Corporate Bonds and Notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments, Fair Value Disclosure | 19,970 | 20,744 |
Fair Value, Inputs, Level 2 [Member] | Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments, Fair Value Disclosure | 6,425 | 5,621 |
Fair Value, Inputs, Level 3 [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments, Fair Value Disclosure | ||
Fair Value, Inputs, Level 3 [Member] | Corporate Bonds and Notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments, Fair Value Disclosure | ||
Fair Value, Inputs, Level 3 [Member] | Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments, Fair Value Disclosure |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Discrete tax benefit | $ 233 | $ 176 |
Unrecognized tax benefits, income tax penalties and interest accrued | 87 | $ 55 |
Internal Revenue Service (IRS) [Member] | ||
Operating loss carryforwards | $ 755 | |
Foreign Tax Authority [Member] | ||
Operating loss carryforwards expiration date description | expire in 2029 | |
Foreign Tax Authority [Member] | HONG KONG [Member] | ||
Operating loss carryforwards | $ 255 | |
Foreign Tax Authority [Member] | SPAIN [Member] | ||
Operating loss carryforwards | $ 855 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Before Income Tax, Domestic and Foreign (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 6,332 | $ 13,295 | $ 9,615 |
Foreign | (2,454) | (2,744) | (1,386) |
Total | $ 3,878 | $ 10,551 | $ 8,229 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Current, Federal | $ (593) | $ (3,386) | $ (2,750) |
Current, State | 63 | (344) | (173) |
Current, Foreign | (37) | (109) | |
Total current | (567) | (3,730) | (3,032) |
Deferred, Federal | (633) | (220) | 379 |
Deferred, State | (17) | (10) | 27 |
Deferred, foreign | 115 | 470 | 401 |
Deferred provision before change in valuation allowance | (535) | 240 | 807 |
Change in valuation allowance | (332) | (285) | (408) |
Total deferred | (867) | (45) | 399 |
(Provision) for income taxes | $ (1,434) | $ (3,775) | $ (2,633) |
Income Taxes - Schedule of In68
Income Taxes - Schedule of Income Tax Provision for Federal Statutory Income Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Tax (provision) at Federal statutory rate | $ (1,318) | $ (3,587) | $ (2,798) |
State income tax (provision), net of federal benefit | (148) | (408) | (257) |
Research and development tax credits | 423 | 456 | 549 |
Foreign earnings or losses taxed at different rates | (292) | (231) | (102) |
Other | 233 | 280 | 383 |
Change in valuation allowance | (332) | (285) | (408) |
Tax (provision) | $ (1,434) | $ (3,775) | $ (2,633) |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||
Deferred revenue | $ 845 | $ 1,019 |
Basis difference in intangible assets | (56) | 26 |
Inventory reserve | 2,650 | 2,452 |
Net operating loss carryforwards | 1,391 | 1,347 |
Research and development tax credits | 88 | |
Accrued expenses | 92 | 165 |
Stock-based compensation | 584 | 672 |
Allowance for sales returns and doubtful accounts | 70 | 20 |
Difference in property and equipment basis | (350) | (423) |
Other | 743 | 886 |
Total net deferred income tax asset | 6,057 | 6,164 |
Less: Valuation allowance | (1,404) | (1,071) |
Net deferred income tax asset (liability) | $ 4,654 | $ 5,093 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Uncertain Tax Positions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Balance - beginning of year | $ 1,126 | $ 1,678 |
Additions based on tax positions related to the current year | 16 | 52 |
Additions for tax positions of prior years | 47 | 5 |
Reductions for tax positions of prior years | (503) | |
Settlements | ||
Lapse in statutes of limitations | (106) | |
Uncertain tax positions, ending balance | $ 1,189 | $ 1,126 |
Geographic Sales Information -
Geographic Sales Information - Schedule of Revenue by Geographic Area (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue | $ 48,637 | $ 57,796 | $ 57,909 |
United States [Member] | |||
Revenue | 31,838 | 39,563 | 39,837 |
All Other Countries [Member] | |||
Revenue | $ 16,799 | $ 18,233 | $ 18,072 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | Jan. 31, 2017 | Dec. 31, 2016 | Mar. 01, 2017 | Mar. 09, 2016 | Dec. 31, 2014 |
Dividend price per share | $ 0.05 | ||||
Dividend paid date | Mar. 1, 2017 | ||||
Dividend record date | Feb. 15, 2017 | ||||
Repurchase shares of common stock | $ 10,000 | $ 2,598 | |||
Subsequent Event [Member] | |||||
Dividend price per share | $ 0.05 | ||||
Dividend paid date | Mar. 1, 2017 | ||||
Dividend record date | Feb. 15, 2017 | ||||
Subsequent Event [Member] | Renewed and Extended [Member] | |||||
Repurchase shares of common stock | $ 10,000 |