Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 05, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | CLEARONE INC | |
Entity Central Index Key | 840,715 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 8,704,410 | |
Trading Symbol | CLRO | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,017 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 8,639 | $ 12,100 |
Marketable securities | 5,862 | 5,030 |
Receivables, net of allowance for doubtful accounts of $187 and $186, as of March 31, 2017 and December 31, 2016 respectively | 7,303 | 7,461 |
Inventories | 14,438 | 11,377 |
Distributor channel inventories | 1,463 | 1,530 |
Prepaid expenses and other assets | 3,000 | 2,642 |
Total current assets | 40,705 | 40,140 |
Long-term marketable securities | 21,102 | 21,365 |
Long-term inventories, net | 1,470 | 1,664 |
Property and equipment, net | 1,529 | 1,513 |
Intangibles, net | 5,496 | 5,677 |
Goodwill | 12,724 | 12,724 |
Deferred income taxes | 4,654 | 4,654 |
Other assets | 379 | 387 |
Total assets | 88,059 | 88,124 |
Current liabilities: | ||
Accounts payable | 4,907 | 3,545 |
Accrued liabilities | 2,045 | 1,894 |
Deferred product revenue | 3,888 | 3,882 |
Total current liabilities | 10,840 | 9,321 |
Deferred rent | 82 | 103 |
Other long-term liabilities | 1,274 | 1,251 |
Total liabilities | 12,196 | 10,675 |
Shareholders' equity: | ||
Common stock, par value $0.001, 50,000,000 shares authorized, 8,734,917 and 8,812,644 shares issued and outstanding as of March 31, 2017 and December 31, 2016 respectively | 9 | 9 |
Additional paid-in capital | 46,868 | 46,669 |
Accumulated other comprehensive loss | (155) | (205) |
Retained earnings | 29,141 | 30,976 |
Total shareholders' equity | 75,863 | 77,449 |
Total liabilities and shareholders' equity | $ 88,059 | $ 88,124 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 187 | $ 186 |
Common stock par value | $ 0.001 | $ 0.001 |
Common stock shares authorized | 50,000,000 | 50,000,000 |
Common stock shares issued | 8,734,917 | 8,812,644 |
Common stock shares outstanding | 8,734,917 | 8,812,644 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement [Abstract] | ||
Revenue | $ 11,678 | $ 13,033 |
Cost of goods sold | 5,000 | 4,568 |
Gross profit | 6,678 | 8,465 |
Operating expenses: | ||
Sales and marketing | 2,741 | 2,625 |
Research and product development | 2,357 | 2,270 |
General and administrative | 2,106 | 1,598 |
Total operating expenses | 7,204 | 6,493 |
Operating income (loss) | (526) | 1,972 |
Other income, net | 102 | 11 |
Income (loss) before income taxes | (424) | 1,983 |
Provision for income taxes | 44 | 615 |
Net income (loss) | $ (468) | $ 1,368 |
Basic earnings (loss) per common share | $ (0.05) | $ 0.15 |
Diluted earnings (loss) per common share | $ (0.05) | $ 0.14 |
Basic weighted average shares outstanding | 8,768,112 | 9,196,522 |
Diluted weighted average shares outstanding | 8,768,112 | 9,513,440 |
Comprehensive income (loss): | ||
Net income (loss) | $ (468) | $ 1,368 |
Other comprehensive income: | ||
Change in unrealized gains on available-for-sale securities, net of tax | 38 | 121 |
Change in foreign currency translation adjustment | 12 | 33 |
Comprehensive income (loss) | $ (418) | $ 1,522 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (468) | $ 1,368 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization expense | 402 | 483 |
Amortization of deferred rent | (17) | (20) |
Stock-based compensation expense | 171 | 148 |
Provision for (recoveries of) doubtful accounts, net | (2) | 25 |
Change of inventory to net realizable value | (34) | 119 |
Loss on disposal of assets | 49 | |
Tax benefit from exercise of stock options | (2) | (583) |
Deferred income taxes | 25 | 47 |
Changes in operating assets and liabilities: | ||
Receivables | 169 | 562 |
Inventories | (2,766) | (964) |
Prepaid expenses and other assets | (136) | (144) |
Accounts payable | 1,361 | 1,378 |
Accrued liabilities | 145 | (82) |
Income taxes payable | (215) | 106 |
Deferred product revenue | 4 | (354) |
Other long-term liabilities | (52) | |
Net cash provided by (used in) operating activities | (1,363) | 2,086 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (181) | (139) |
Purchase of intangibles | (56) | |
Proceeds from maturities and sales of marketable securities | 1,906 | 2,787 |
Purchase of marketable securities | (2,437) | (2,538) |
Net cash provided by (used in) investing activities | (768) | 110 |
Cash flows from financing activities: | ||
Net proceeds from equity-based compensation programs | 28 | 318 |
Repurchase and cancellation of stock options | (1,752) | |
Tax benefit from exercise of stock options | 583 | |
Dividend payments | (439) | (459) |
Payments for stock repurchases | (928) | (404) |
Net cash used in financing activities | (1,339) | (1,714) |
Effect of exchange rate changes on cash and cash equivalents | 9 | 19 |
Net increase (decrease) in cash and cash equivalents | (3,461) | 501 |
Cash and cash equivalents at the beginning of the year | 12,100 | 13,412 |
Cash and cash equivalents at the end of the year | 8,639 | 13,913 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | $ 1 | $ 537 |
Business Description, Basis of
Business Description, Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
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, streaming and digital signage solutions for audio and visual communications. The performance and simplicity of its advanced comprehensive solutions offer unprecedented levels of functionality, reliability and scalability. Basis of Presentation: The fiscal year for ClearOne is the 12 months ending on December 31. The consolidated financial statements include the accounts of ClearOne and its subsidiaries. All significant inter-company accounts and transactions have been eliminated. These accompanying interim unaudited condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and are not audited. Certain information and footnote disclosures that are usually included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been either condensed or omitted in accordance with SEC rules and regulations. The accompanying condensed consolidated financial statements contain all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of our financial position as of March 31, 2017 and December 31, 2016, the results of operations for the three months ended March 31, 2017 and 2016, and the cash flows for the three months ended March 31, 2017 and 2016. The results of operations for the three months ended March 31, 2017 and 2016 are not necessarily indicative of the results for a full-year period. These interim unaudited condensed consolidated financial statements should be read in conjunction with the financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2016 filed with the SEC. Significant Accounting Policies: The significant accounting policies were described in Note 1 to the audited consolidated financial statements included in the Company’s annual report on Form 10-K for the year ended December 31, 2016. There have been no changes to these policies during the three months ended March 31, 2017 that are of significance or potential significance to the Company. Recent Accounting Pronouncements: In May 2014, the FASB released Accounting Standards Update (ASU) No. 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. The updated standard becomes effective for the Company on January 1, 2018. Early adoption is permitted. 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 February 2016, the FASB released Accounting Standards Update (ASU) 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 is effective for fiscal years beginning after December 15, 2018 and interim periods within 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 released Accounting Standards Update No. 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 was effective for the Company on January 1, 2017. As a result of the adoption of ASU 2016-09, excess tax benefits or deficiencies related to stock-based compensation are now reflected in the Consolidated Statements of Income as a component of the provision for income taxes, whereas they previously were recognized in additional paid-in capital. In addition, our Consolidated Statements of Cash Flows will now present, on a prospective basis, excess tax benefits as an operating activity. Finally, we have elected to account for forfeitures as they occur, rather than estimate expected forfeitures. In August 2016, the FASB released Accounting Standards Update (ASU) No. 2016-15, Classification of Certain Cash Receipts and Cash Payments, which addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. ASU 2016-15 is effective for the Company beginning January 1, 2018 and we are currently evaluating the impact that ASU 2016-15 will have on our consolidated financial statements. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | 2. Earnings (Loss) Per Share Earnings (loss) per common share is computed based on the weighted-average number of common shares outstanding and, when appropriate, dilutive potential common stock outstanding during the period. Stock options and warrants are considered to be potential common stock. The computation of diluted earnings (loss) per share does not assume exercise or conversion of securities that would have an anti-dilutive effect. Basic earnings (loss) per common share is the amount of net loss for the period available to each weighted-average share of common stock outstanding during the reporting period. Diluted earnings (loss) per common share is the amount of earnings (loss) for the period available to each weighted-average share of common stock outstanding during the reporting period and to each share of potential common stock outstanding during the period, unless inclusion of potential common stock would have an anti-dilutive effect. The following table sets forth the computation of basic and diluted earnings per common share: Three months ended March 31, 2017 2016 Numerator: Net income (loss) $ (468 ) $ 1,368 Denominator: Basic weighted average shares outstanding 8,768,112 9,196,522 Dilutive common stock equivalents using treasury stock method — 316,918 Diluted weighted average shares outstanding 8,768,112 9,513,440 Basic earnings (loss) per common share $ (0.05 ) $ 0.15 Diluted earnings (loss) per common share $ (0.05 ) $ 0.14 Weighted average options outstanding 847,731 1,000,571 Anti-dilutive options not included in the computations 847,731 289,623 |
Marketable Securities
Marketable Securities | 3 Months Ended |
Mar. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | 3. Marketable Securities The Company has classified its marketable securities as available-for-sale securities. These securities are carried at estimated fair value with unrealized holding gains and losses included in accumulated other comprehensive income/loss in stockholders’ equity until realized. Gains and losses on marketable security transactions are reported on the specific-identification method. Dividend and interest income are recognized when earned. The amortized cost, gross unrealized holding gains, gross unrealized holding losses, and fair value for available-for-sale securities by major security type and class of securities at March 31, 2017 and December 31, 2016 were as follows: Amortized cost Gross unrealized holding gains Gross unrealized holding losses Estimated fair value March 31, 2017 Available-for-sale securities: Corporate bonds and notes $ 19,426 $ 73 $ (97 ) $ 19,402 Municipal bonds 7,573 9 (20 ) 7,562 Total available-for-sale securities $ 26,999 $ 82 $ (117 ) $ 26,964 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 Maturities of marketable securities classified as available-for-sale securities were as follows at March 31, 2017: Amortized cost Estimated fair value March 31, 2017 Due within one year $ 5,857 $ 5,862 Due after one year through five years 21,142 21,102 Total available-for-sale securities $ 26,999 $ 26,964 Debt securities in an unrealized loss position as of March 31, 2017 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 with continuous gross unrealized loss position for less than 12 months and 12 months or greater and their related fair values were as follows: Less than 12 months More than 12 months Total (In thousands) Estimated fair value Gross unrealized holding losses Estimated fair value Gross unrealized holding losses Estimated fair value Gross unrealized holding losses As of March 31, 2017 Corporate bonds and notes $ 10,664 $ (87 ) $ 1,030 $ (10 ) $ 11,694 $ (97 ) Municipal bonds 4,981 (20 ) 419 — 5,400 (20 ) Total $ 15,645 $ (107 ) $ 1,449 $ (10 ) $ 17,094 $ (117 ) |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 4. Intangible Assets Intangible assets as of March 31, 2017 and December 31, 2016 consisted of the following: Estimated useful lives March 31, 2017 December 31, 2016 Tradename 5 to 7 years $ 555 $ 555 Patents and technological know-how 10 years 6,066 6,010 Proprietary software 3 to 15 years 4,341 4,341 Other 3 to 5 years 324 324 Total intangible assets 11,286 11,230 Accumulated amortization (5,790 ) (5,553 ) Total intangible assets, net $ 5,496 $ 5,677 The amortization of intangible assets for the three months ended March 31, 2017 and 2016 was as follows: Three months ended March 31, 2017 2016 Amortization of intangible assets $ 238 $ 289 The estimated future amortization expense of intangible assets is as follows: Years ending December 31, 2017 (remainder) $ 690 2018 896 2019 781 2020 602 2021 602 Thereafter 1,925 $ 5,496 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | 5. Inventories Inventories, net of reserves, as of March 31, 2017 and December 31, 2016 consisted of the following: As of March 31, 2017 December 31, 2016 Current: Raw materials $ 3,258 $ 2,291 Finished goods 11,180 9,086 $ 14,438 $ 11,377 Long-term: Raw materials $ 473 $ 599 Finished goods 997 1,065 $ 1,470 $ 1,664 Long-term inventory represents inventory held in excess of our current (next 12 months) requirements based on our recent sales and forecasted level of sales. We expect to sell the above inventory, net of reserves, at or above the stated cost and believe that no loss will be incurred on its sale, although there can be no assurance of the timing or amount of any sales. Current finished goods do not include consigned inventory in the amounts of approximately $1,463 and $1,530 as of March 31, 2017 and December 31, 2016, respectively. Distributor channel inventories represent inventories at distributors and other customers where revenue recognition criteria have not yet been achieved. Net loss incurred on valuation of inventory at lower of cost or market value and write-off of obsolete inventory during the three months ended March 31, 2016 was $119. During the three months ended March 31, 2017 benefit from the reduction of reserves for valuation of inventory at lower of cost or market value was $34. |
Share-based Compensation
Share-based Compensation | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation | 6. Share-based Compensation Employee Stock Option Plans The Company’s share-based incentive plans offering stock options primarily consists of two plans. Under both plans, one new share is issued for each stock option exercised. The plans are described below. The Company’s 1998 Incentive Plan (the “1998 Plan”) was the Company’s primary plan through November 2007. Under this plan shares of common stock were 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 March 31, 2003. Subsequent to December 1999 and through March 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 March 31, 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 March 2002, all vesting schedules are based on 3 or 4-year vesting schedules, with either one-third or one-fourth vesting on the first anniversary and the remaining options vesting ratably over the remainder of the vesting term. Generally, directors and officers have 3-year vesting schedules and all other employees have 4-year vesting schedules. Additionally, in the event of a change in control or the occurrence of a corporate transaction, the Company’s Board of Directors has the authority to elect that all unvested options shall vest and become exercisable immediately prior to the event or closing of the transaction. All options outstanding as of March 31, 2017 had contractual lives of ten years. Under the 1998 Plan, 2,500,000 shares were authorized for grant. As of March 31, 2017, 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 March 31, 2017, there were 695,172 options outstanding under the 2007 Plan. As of March 31, 2017, the 2007 Plan had 845,104 authorized unissued options, while there were no options remaining that could be granted under the 1998 Plan. A summary of the stock option activity under the Company’s plans for the three months ended March 31, 2017 is as follows: Number of shares Weighted average exercise price Options outstanding at beginning of year 850,232 $ 8.06 Granted __ __ Less: Exercised (1,396 ) 6.53 Forfeited prior to vesting (3,664 ) 9.85 Canceled or Expired — — Options outstanding at March 31, 2017 845,172 8.06 Options exercisable at end of March 31, 2017 613,174 $ 6.84 As of March 31, 2017, the total remaining unrecognized compensation cost related to non-vested stock options, net of forfeitures, was approximately $948, which will be recognized over a weighted average period of 2.10 years. Stock Option Repurchase From March 11, 2016 to March 17, 2016, the Company offered to repurchase eligible vested options to purchase shares under the 1998 Plan and the 2007 Plan from employees. The Company repurchased delivered options at a repurchase price equal to the difference between the closing market price on the date of the employee’s communication of accepting the repurchase offer and the exercise price of such employee’s delivered options, subject to applicable withholding taxes and charges. The Company repurchased 225,542 stock options from employees at an average purchase price of $7.77. Employee Stock Purchase Plan The Company issues shares to employees under the Company’s 2014 Employee Stock Purchase Plan (the “ESPP”). The ESPP was approved by the Company’s shareholders on December 12, 2014. As of March 31, 2017, 473,316 of the originally approved 500,000 shares were available for offerings under the ESPP. Offering periods under the ESPP commence on each January 1 and July 1, and continue for a duration of six months. The ESPP is available to all employees who do not own, or not are deemed to own, shares of stock making up an excess of 5% of the combined voting power of the Company, its parent or subsidiary. During each offering period, each eligible employee may purchase shares under the ESPP after authorizing payroll deductions. Under the ESPP, each employee may purchase up to the lesser of 2,500 shares or $25 of fair market value (based on the established purchase price) of the Company’s stock for each offering period. Unless the employee has previously withdrawn from the offering, his or her accumulated payroll deductions will be used to purchase common stock on the last business day of the period at a price equal to 85% (or a 15% discount) of the fair market value of the common stock on the first or last day of the offering period, whichever is lower. Share-based compensation expense has been recorded as follows: Three months ended March, 31 2017 2016 Cost of goods sold $ 8 $ 4 Sales and marketing 14 14 Research and product development 38 27 General and administrative 111 103 $ 171 $ 148 |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Shareholders' Equity | 7. Shareholders’ Equity Stock Repurchase Program 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. Period (a) Total Number of Shares Purchased (b) Average Price Paid per Share (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (d) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in $ millions) January 2017 35,794 $ 12.29 35,794 $ 3.5 February 2017 22,012 11.57 22,012 3.2 March 2017 21,150 11.03 21,150 9.9 Total 78,956 11.75 78,956 Cash Dividends On January 31, 2017, the Company declared a stock dividend of $0.05 per share of ClearOne common stock paid March 1, 2017 to shareholders of record as of February 15, 2017. Changes in Shareholders’ Equity The following table summarizes the change in shareholders’ equity during the three months ended March 31, 2017 and 2016, respectively: Three months ended March 31, 2017 2016 Balance at the beginning of the period $ 77,449 $ 82,569 Exercise of stock options 9 293 Stock repurchased (928 ) (404 ) Options repurchased — (1,752 ) Proceeds from stock purchase plan 19 25 Dividends (439 ) (459 ) Share-based compensation 171 148 Tax benefit - stock option exercise — 563 Unrealized gain or loss on investments, net of tax 38 121 Foreign currency translation adjustment 12 33 Net income/(loss) during the period (468 ) 1,368 Balance at end of the period $ 75,863 $ 82,505 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 8. 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 table sets forth the fair value of the financial instruments re-measured by the Company as of March 31, 2017 and December 31, 2016: Level 1 Level 2 Level 3 Total March 31, 2017 Corporate bonds and notes $ — $ 19,402 $ — $ 19,402 Municipal bonds — 7,562 — 7,562 Total $ — $ 26,964 $ — $ 26,964 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 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. Income Taxes The Company’s forecasted effective tax rate at March 31, 2017 is 30.9%, a 6.1% decrease from the 37.0% effective tax rate recorded at December 31, 2016. The forecasted effective tax rate of 30.9% excludes jurisdictions for which no benefit from forecasted current year losses is anticipated. Including losses from such jurisdictions results in a forecasted effective tax rate of 32.9%. Our forecasted effective tax rate could fluctuate significantly on a quarterly basis and could change, to the extent that earnings in countries with tax rates that differ from that of the U.S. differ from amounts anticipated at March 31, 2017. After a discrete tax expense of $6, the effective tax rate for the quarter ended March 31, 2017 is (10.7)%, which is due primarily to losses in certain foreign jurisdictions which cannot be benefited. The discrete tax expense of $6 is primarily attributable to interest and penalties on unrecognized tax benefits. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 10. Subsequent Events On April 25, 2017, the Company was awarded a new patent, U.S. Patent No. 9,635,186 (the “‘186 Patent”), which relates to a system and method involving the combination of echo cancellation and beamforming microphone arrays. Also on April 25, 2017, the Company filed a lawsuit in the U.S. Federal District Court in the District of Utah against three parties—Shure, Inc. (“Shure”), Biamp Systems Corporation, and QSC Audio Products, LLC (collectively, “Defendants”), alleging that the Defendants were jointly and indirectly infringing the newly issued ‘186 Patent (the “Infringement Action”). On that same day, Shure filed a separate action in the U.S. Federal District Court in the Northern District of Illinois (the “Illinois Action”) requesting a declaratory judgment as to the invalidity or non-infringement with respect to the ‘186 Patent. The Illinois Action also seeks the same declaratory judgment with respect to another Company patent, United States Patent No. 9,264,553 (the “‘553 Patent”), and which has not been asserted by the Company against any defendant and has been submitted to the USPTO for reissue. The Company intends to vigorously enforce and defend its intellectual property rights in the Infringement Action and the Illinois Action. On May 4, 2017 the Company announced a quarterly cash dividend for the first quarter of 2017 at $0.07 per share to be paid on May 31, 2017 to shareholders of record as of May 17, 2017. |
Business Description, Basis o16
Business Description, Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description | Business Description: ClearOne, Inc. together with its subsidiaries (collectively, “ClearOne” or the “Company”) is a global company that designs, develops and sells conferencing, collaboration, streaming and digital signage solutions for audio and visual communications. The performance and simplicity of its advanced comprehensive solutions offer unprecedented levels of functionality, reliability and scalability. |
Basis of Presentation | Basis of Presentation: The fiscal year for ClearOne is the 12 months ending on December 31. The consolidated financial statements include the accounts of ClearOne and its subsidiaries. All significant inter-company accounts and transactions have been eliminated. These accompanying interim unaudited condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and are not audited. Certain information and footnote disclosures that are usually included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been either condensed or omitted in accordance with SEC rules and regulations. The accompanying condensed consolidated financial statements contain all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of our financial position as of March 31, 2017 and December 31, 2016, the results of operations for the three months ended March 31, 2017 and 2016, and the cash flows for the three months ended March 31, 2017 and 2016. The results of operations for the three months ended March 31, 2017 and 2016 are not necessarily indicative of the results for a full-year period. These interim unaudited condensed consolidated financial statements should be read in conjunction with the financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2016 filed with the SEC. |
Significant Accounting Policies | Significant Accounting Policies: The significant accounting policies were described in Note 1 to the audited consolidated financial statements included in the Company’s annual report on Form 10-K for the year ended December 31, 2016. There have been no changes to these policies during the three months ended March 31, 2017 that are of significance or potential significance to the Company. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements: In May 2014, the FASB released Accounting Standards Update (ASU) No. 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. The updated standard becomes effective for the Company on January 1, 2018. Early adoption is permitted. 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 February 2016, the FASB released Accounting Standards Update (ASU) 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 is effective for fiscal years beginning after December 15, 2018 and interim periods within 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 released Accounting Standards Update No. 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 was effective for the Company on January 1, 2017. As a result of the adoption of ASU 2016-09, excess tax benefits or deficiencies related to stock-based compensation are now reflected in the Consolidated Statements of Income as a component of the provision for income taxes, whereas they previously were recognized in additional paid-in capital. In addition, our Consolidated Statements of Cash Flows will now present, on a prospective basis, excess tax benefits as an operating activity. Finally, we have elected to account for forfeitures as they occur, rather than estimate expected forfeitures. In August 2016, the FASB released Accounting Standards Update (ASU) No. 2016-15, Classification of Certain Cash Receipts and Cash Payments, which addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. ASU 2016-15 is effective for the Company beginning January 1, 2018 and we are currently evaluating the impact that ASU 2016-15 will have on our consolidated financial statements. |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Common Share | The following table sets forth the computation of basic and diluted earnings per common share: Three months ended March 31, 2017 2016 Numerator: Net income (loss) $ (468 ) $ 1,368 Denominator: Basic weighted average shares outstanding 8,768,112 9,196,522 Dilutive common stock equivalents using treasury stock method — 316,918 Diluted weighted average shares outstanding 8,768,112 9,513,440 Basic earnings (loss) per common share $ (0.05 ) $ 0.15 Diluted earnings (loss) per common share $ (0.05 ) $ 0.14 Weighted average options outstanding 847,731 1,000,571 Anti-dilutive options not included in the computations 847,731 289,623 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 securities at March 31, 2017 and December 31, 2016 were as follows: Amortized cost Gross unrealized holding gains Gross unrealized holding losses Estimated fair value March 31, 2017 Available-for-sale securities: Corporate bonds and notes $ 19,426 $ 73 $ (97 ) $ 19,402 Municipal bonds 7,573 9 (20 ) 7,562 Total available-for-sale securities $ 26,999 $ 82 $ (117 ) $ 26,964 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 |
Schedule of Maturities of Marketable Securities | Maturities of marketable securities classified as available-for-sale securities were as follows at March 31, 2017: Amortized cost Estimated fair value March 31, 2017 Due within one year $ 5,857 $ 5,862 Due after one year through five years 21,142 21,102 Total available-for-sale securities $ 26,999 $ 26,964 |
Schedule of Available-for-sale Securities | The available-for-sale marketable securities with continuous gross unrealized loss position for less than 12 months and 12 months or greater and their related fair values were as follows: Less than 12 months More than 12 months Total (In thousands) Estimated fair value Gross unrealized holding losses Estimated fair value Gross unrealized holding losses Estimated fair value Gross unrealized holding losses As of March 31, 2017 Corporate bonds and notes $ 10,664 $ (87 ) $ 1,030 $ (10 ) $ 11,694 $ (97 ) Municipal bonds 4,981 (20 ) 419 — 5,400 (20 ) Total $ 15,645 $ (107 ) $ 1,449 $ (10 ) $ 17,094 $ (117 ) |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Schedule of Intangible Assets | Intangible assets as of March 31, 2017 and December 31, 2016 consisted of the following: Estimated useful lives March 31, 2017 December 31, 2016 Tradename 5 to 7 years $ 555 $ 555 Patents and technological know-how 10 years 6,066 6,010 Proprietary software 3 to 15 years 4,341 4,341 Other 3 to 5 years 324 324 Total intangible assets 11,286 11,230 Accumulated amortization (5,790 ) (5,553 ) Total intangible assets, net $ 5,496 $ 5,677 |
Schedule of Amortization of Intangible Assets | The amortization of intangible assets for the three months ended March 31, 2017 and 2016 was as follows: Three months ended March 31, 2017 2016 Amortization of intangible assets $ 238 $ 289 |
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 (remainder) $ 690 2018 896 2019 781 2020 602 2021 602 Thereafter 1,925 $ 5,496 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Net of Reserves | Inventories, net of reserves, as of March 31, 2017 and December 31, 2016 consisted of the following: As of March 31, 2017 December 31, 2016 Current: Raw materials $ 3,258 $ 2,291 Finished goods 11,180 9,086 $ 14,438 $ 11,377 Long-term: Raw materials $ 473 $ 599 Finished goods 997 1,065 $ 1,470 $ 1,664 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock Option Activity | A summary of the stock option activity under the Company’s plans for the three months ended March 31, 2017 is as follows: Number of shares Weighted average exercise price Options outstanding at beginning of year 850,232 $ 8.06 Granted __ __ Less: Exercised (1,396 ) 6.53 Forfeited prior to vesting (3,664 ) 9.85 Canceled or Expired — — Options outstanding at March 31, 2017 845,172 8.06 Options exercisable at end of March 31, 2017 613,174 $ 6.84 |
Schedule of Share-based Compensation Expense | Share-based compensation expense has been recorded as follows: Three months ended March, 31 2017 2016 Cost of goods sold $ 8 $ 4 Sales and marketing 14 14 Research and product development 38 27 General and administrative 111 103 $ 171 $ 148 |
Shareholders_ Equity (Tables)
Shareholders’ Equity (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Schedule of Current Stock Repurchase Program | The transactions effectuated to date occurred in open market purchases. Period (a) Total Number of Shares Purchased (b) Average Price Paid per Share (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (d) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in $ millions) January 2017 35,794 $ 12.29 35,794 $ 3.5 February 2017 22,012 11.57 22,012 3.2 March 2017 21,150 11.03 21,150 9.9 Total 78,956 11.75 78,956 |
Summary of Change in Shareholders' Equity | The following table summarizes the change in shareholders’ equity during the three months ended March 31, 2017 and 2016, respectively: Three months ended March 31, 2017 2016 Balance at the beginning of the period $ 77,449 $ 82,569 Exercise of stock options 9 293 Stock repurchased (928 ) (404 ) Options repurchased — (1,752 ) Proceeds from stock purchase plan 19 25 Dividends (439 ) (459 ) Share-based compensation 171 148 Tax benefit - stock option exercise — 563 Unrealized gain or loss on investments, net of tax 38 121 Foreign currency translation adjustment 12 33 Net income/(loss) during the period (468 ) 1,368 Balance at end of the period $ 75,863 $ 82,505 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis | The following table sets forth the fair value of the financial instruments re-measured by the Company as of March 31, 2017 and December 31, 2016: Level 1 Level 2 Level 3 Total March 31, 2017 Corporate bonds and notes $ — $ 19,402 $ — $ 19,402 Municipal bonds — 7,562 — 7,562 Total $ — $ 26,964 $ — $ 26,964 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 |
Earnings (Loss) Per Share - Com
Earnings (Loss) Per Share - Computation of Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Net income (loss) | $ (468) | $ 1,368 |
Basic weighted average shares outstanding | 8,768,112 | 9,196,522 |
Dilutive common stock equivalents using treasury stock method | 316,918 | |
Diluted weighted average shares outstanding | 8,768,112 | 9,513,440 |
Basic earnings (loss) per common share | $ (0.05) | $ 0.15 |
Diluted earnings (loss) per common share | $ (0.05) | $ 0.14 |
Weighted average options outstanding | 847,731 | 1,000,571 |
Anti-dilutive options not included in the computations | 847,731 | 289,623 |
Marketable Securities - Schedul
Marketable Securities - Schedule of Available-for-sale Securities Reconciliation (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Amortized cost | $ 26,999 | $ 26,491 |
Gross unrealized holding gains | 82 | 70 |
Gross unrealized holding losses | (117) | (166) |
Estimated fair value | 26,964 | 26,395 |
Corporate Bonds and Notes [Member] | ||
Amortized cost | 19,426 | 20,028 |
Gross unrealized holding gains | 73 | 64 |
Gross unrealized holding losses | (97) | (122) |
Estimated fair value | 19,402 | 19,970 |
Municipal Bonds [Member] | ||
Amortized cost | 7,573 | 6,463 |
Gross unrealized holding gains | 9 | 6 |
Gross unrealized holding losses | (20) | (44) |
Estimated fair value | $ 7,562 | $ 6,425 |
Marketable Securities - Sched26
Marketable Securities - Schedule of Maturities of Marketable Securities (Details) $ in Thousands | Mar. 31, 2017USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Amortized cost Due within one year | $ 5,857 |
Amortized cost Due after one year through five years | 21,142 |
Amortized cost Total available-for-sale securities | 26,999 |
Estimated fair value Due within one year | 5,862 |
Estimated fair value Due after one year through five years | 21,102 |
Estimated fair value Total available-for-sale securities | $ 26,964 |
Marketable Securities - Sched27
Marketable Securities - Schedule of Available-for-sale Securities (Details) $ in Thousands | Mar. 31, 2017USD ($) |
Less than 12 Months - Estimated Fair Value | $ 15,645 |
Less than 12 Months - Gross Unrealized Holding Losses | (107) |
More than 12 Months - Estimated Fair Value | 1,449 |
More than 12 Months - Gross Unrealized Holding Losses | (10) |
Total Estimated Fair Value | 17,094 |
Total Gross Unrealized Holding Losses | (117) |
Corporate Bonds and Notes [Member] | |
Less than 12 Months - Estimated Fair Value | 10,664 |
Less than 12 Months - Gross Unrealized Holding Losses | (87) |
More than 12 Months - Estimated Fair Value | 1,030 |
More than 12 Months - Gross Unrealized Holding Losses | (10) |
Total Estimated Fair Value | 11,694 |
Total Gross Unrealized Holding Losses | (97) |
Municipal Bonds [Member] | |
Less than 12 Months - Estimated Fair Value | 4,981 |
Less than 12 Months - Gross Unrealized Holding Losses | (20) |
More than 12 Months - Estimated Fair Value | 419 |
More than 12 Months - Gross Unrealized Holding Losses | |
Total Estimated Fair Value | 5,400 |
Total Gross Unrealized Holding Losses | $ (20) |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Total intangible assets | $ 11,286 | $ 11,230 |
Accumulated amortization | (5,790) | (5,553) |
Total intangible assets, net | 5,496 | 5,677 |
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 | $ 6,066 | 6,010 |
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 |
Intangible Assets - Schedule 29
Intangible Assets - Schedule of Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 238 | $ 289 |
Intangible Assets - Schedule 30
Intangible Assets - Schedule of Estimated Future Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2017 (remainder) | $ 690 | |
2,018 | 896 | |
2,019 | 781 | |
2,020 | 602 | |
2,021 | 602 | |
Thereafter | 1,925 | |
Finite-Lived Intangible Assets, Net | $ 5,496 | $ 5,677 |
Inventories (Details Narrative)
Inventories (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |||
Current finished goods do not include distributor channel inventories amount | $ 1,463 | $ 1,530 | |
Losses incurred on valuation of inventory and write-off of obsolete inventory | $ (34) | $ 119 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory, Net of Reserves (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 3,258 | $ 2,291 |
Finished goods | 11,180 | 9,086 |
Current Inventories | 14,438 | 11,377 |
Raw materials | 473 | 599 |
Finished goods | 997 | 1,065 |
Long-term Inventories | $ 1,470 | $ 1,664 |
Share-based Compensation (Detai
Share-based Compensation (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | Mar. 17, 2016 | Mar. 31, 2005 | Dec. 31, 1999 | Mar. 31, 2017 | Mar. 31, 2003 | Mar. 31, 2002 | Dec. 31, 2016 | Dec. 12, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of stock options granted | ||||||||
Stock options vesting description | The options granted subsequent to March 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. | |||||||
Number of stock options shares outstanding | 845,172 | 850,232 | ||||||
Unrecognized compensation cost related to non-vested stock options, net of forfeitures | $ 948 | |||||||
Recognized over weighted average period | 2 years 1 month 6 days | |||||||
Stock options repurchased during the period | 78,956 | |||||||
Percentage of shares excess of combined voting power of parents and subsidiary | 5.00% | |||||||
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 | |||||||
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% | |||||||
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 | |||||||
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 | 695,172 | |||||||
Number of stock options shares authorized and unissued | 845,104 | |||||||
1998 Incentive Plan and 2007 Equity Incentive Plan [Member] | Employees [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock options repurchased during the period | 225,542 | |||||||
Stock option average purchase price per share | $ 7.77 | |||||||
2015 Employee Stock Purchase Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of stock options granted | 473,316 | |||||||
Number of shares avaliable for offerings | 500,000 |
Share-based Compensation - Sche
Share-based Compensation - Schedule of Stock Options Activity (Details) | 3 Months Ended |
Mar. 31, 2017$ / sharesshares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Number of shares Options, Outstanding at beginning of quarter | shares | 850,232 |
Number of shares Options, Granted | shares | |
Number of shares Options, Exercised | shares | (1,396) |
Number of shares Options, Forfeited prior to vesting | shares | (3,664) |
Number of shares Options, Canceled or Expired | shares | |
Number of shares Options, Outstanding at end of quarter | shares | 845,172 |
Number of shares Options, Exercisable at end of quarter | shares | 613,174 |
Weighted Average Exercise Price, Outstanding at beginning of quarter | $ / shares | $ 8.06 |
Weighted Average Exercise Price, Granted | $ / shares | |
Weighted Average Exercise Price, Exercised | $ / shares | 6.53 |
Weighted Average Exercise Price, Forfeited prior to vesting | $ / shares | 9.85 |
Weighted Average Exercise Price, Canceled or Expired | $ / shares | |
Weighted Average Exercise Price, Outstanding at end of quarter | $ / shares | 8.06 |
Weighted Average Exercise Price, Exercisable at end of Period | $ / shares | $ 6.84 |
Share-based Compensation - Sc35
Share-based Compensation - Schedule of Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based compensation expense | $ 171 | $ 148 |
Cost of Goods Sold [Member] | ||
Share-based compensation expense | 8 | 4 |
Sales and Marketing [Member] | ||
Share-based compensation expense | 14 | 14 |
Research and Product Development [Member] | ||
Share-based compensation expense | 38 | 27 |
General and Administrative [Member] | ||
Share-based compensation expense | $ 111 | $ 103 |
Shareholders' Equity (Details N
Shareholders' Equity (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Jan. 31, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2014 | Mar. 09, 2016 | |
Stock repurchased during period, value | $ 10,000 | $ (928) | $ (404) | |||
Dividend price per share | $ 0.05 | |||||
Dividend paid date | Jun. 1, 2017 | Mar. 1, 2017 | ||||
Dividend record date | Feb. 15, 2017 | |||||
Minimum [Member] | ||||||
Dividend price per share | $ 0.05 | |||||
Maximum [Member] | ||||||
Dividend price per share | $ 0.07 | |||||
Stock Repurchase Program [Member] | ||||||
Stock repurchased during period, shares | 272,767 | |||||
Stock repurchased during period, value | $ 2,598 | |||||
New Stock Repurchase Program [Member] | Board of Directors [Member] | ||||||
Stock repurchase program, authorized amount | $ 10 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Current Stock Repurchase Program (Details) $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($)$ / sharesshares | |
Total Number of Shares Purchased | 78,956 |
Average Price Paid per Share | $ / shares | $ 11.75 |
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | 78,956 |
January 2017 [Member] | |
Total Number of Shares Purchased | 35,794 |
Average Price Paid per Share | $ / shares | $ 12.29 |
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | 35,794 |
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | $ | $ 3,500 |
February 2017 [Member] | |
Total Number of Shares Purchased | 22,012 |
Average Price Paid per Share | $ / shares | $ 11.57 |
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | 22,012 |
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | $ | $ 3,200 |
March 2017 [Member] | |
Total Number of Shares Purchased | 21,150 |
Average Price Paid per Share | $ / shares | $ 11.03 |
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | 21,150 |
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | $ | $ 9,900 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Change in Shareholders' Equity (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | |
Shareholders Equity - Summary Of Change In Shareholders Equity Details | |||
Balance at the beginning of the period | $ 77,449 | $ 82,569 | |
Exercise of stock options | 9 | 293 | |
Stock repurchased | $ 10,000 | (928) | (404) |
Options repurchased | (1,752) | ||
Proceeds from stock purchase plan | 19 | 25 | |
Dividends | (439) | (459) | |
Share-based compensation | 171 | 148 | |
Tax benefit - stock option exercises | 563 | ||
Unrealized gain or loss on investments, net of tax | 38 | 121 | |
Foreign currency translation adjustment | 12 | 33 | |
Net income/(loss) during the period | (468) | 1,368 | |
Balance at end of the period | $ 75,863 | $ 75,863 | $ 82,505 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Investments, Fair Value Disclosure | $ 26,964 | $ 26,395 |
Corporate Bonds and Notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments, Fair Value Disclosure | 19,402 | 19,970 |
Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments, Fair Value Disclosure | 7,562 | 6,425 |
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 | 26,964 | 26,395 |
Fair Value, Inputs, Level 2 [Member] | Corporate Bonds and Notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments, Fair Value Disclosure | 19,402 | 19,970 |
Fair Value, Inputs, Level 2 [Member] | Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments, Fair Value Disclosure | 7,562 | 6,425 |
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 | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate, forecasted | 30.90% | |
Effective income tax rate, continuing operations, forecasted increase (decrease) in rate | 6.10% | |
Effective income tax rate, continuing operations | 37.00% | |
Effective tax rate, including loss jurisdictions | 32.90% | |
Unrecognized tax benefits that would impact effective tax rate | $ 6 | |
Effective tax rate, after discreet benefits | (10.70%) |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - $ / shares | May 04, 2017 | Mar. 31, 2017 | Jan. 31, 2017 |
Dividend paid date | Jun. 1, 2017 | Mar. 1, 2017 | |
Dividend record date | Feb. 15, 2017 | ||
Subsequent Event [Member] | |||
Dividend price per share | $ 0.07 | ||
Dividend paid date | May 31, 2017 | ||
Dividend record date | May 17, 2017 |