Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 02, 2015 | Jun. 30, 2014 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | CSCD | ||
Entity Registrant Name | CASCADE MICROTECH INC | ||
Entity Central Index Key | 864559 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 16,549,594 | ||
Entity Public Float | $197,039,129 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets: | ||
Cash and cash equivalents | $38,107 | $17,172 |
Short-term marketable securities | 1,626 | 4,278 |
Restricted cash | 61 | 1,082 |
Accounts receivable, net of allowances of $208 and $269 | 20,763 | 26,520 |
Inventories | 24,642 | 24,884 |
Prepaid expenses and other | 4,454 | 2,147 |
Deferred income taxes | 3,027 | 2,268 |
Total Current Assets | 92,680 | 78,351 |
Fixed assets, net of accumulated depreciation of $28,407 and $27,730 | 8,100 | 6,403 |
Goodwill | 12,823 | 14,471 |
Purchased intangible assets, net of accumulated amortization of $5,324 and $5,228 | 12,572 | 16,937 |
Deferred income taxes | 1,262 | 1,235 |
Other assets | 944 | 1,114 |
Total Assets | 128,381 | 118,511 |
Current Liabilities: | ||
Accounts payable | 7,505 | 7,229 |
Deferred revenue | 2,070 | 2,555 |
Accrued liabilities | 9,505 | 8,859 |
Total Current Liabilities | 19,080 | 18,643 |
Deferred revenue | 329 | 548 |
Other long-term liabilities | 1,511 | 2,119 |
Total Liabilities | 20,920 | 21,310 |
Shareholders' Equity: | ||
Common stock, $0.01 par value. Authorized 100,000 shares; issued and outstanding: 16,466 and 16,218 | 165 | 162 |
Additional paid-in capital | 111,480 | 107,908 |
Accumulated other comprehensive income (loss) | -3,127 | 118 |
Accumulated deficit | -1,057 | -10,987 |
Total Shareholders' Equity | 107,461 | 97,201 |
Total Liabilities and Shareholders' Equity | $128,381 | $118,511 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $208 | $269 |
Fixed assets, accumulated depreciation | 28,407 | 27,730 |
Purchased intangible assets, accumulated amortization | $5,324 | $5,228 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 100,000 | 100,000 |
Common stock, shares issued | 16,466 | 16,218 |
Common stock, shares outstanding | 16,466 | 16,218 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||
Revenue | $136,022 | $120,010 | $112,963 |
Cost of sales | 65,708 | 65,286 | 63,012 |
Gross profit | 70,314 | 54,724 | 49,951 |
Operating expenses: | |||
Research and development | 13,821 | 10,961 | 11,017 |
Selling, general and administrative | 43,209 | 36,430 | 31,377 |
Total operating expenses | 57,030 | 47,391 | 42,394 |
Income from operations | 13,284 | 7,333 | 7,557 |
Other income (expense): | |||
Interest income, net | 29 | 44 | 52 |
Other, net | -649 | -296 | -801 |
Total other income (expense), net | -620 | -252 | -749 |
Income before income taxes | 12,664 | 7,081 | 6,808 |
Income tax expense (benefit) | 2,734 | -6,337 | 709 |
Net income | $9,930 | $13,418 | $6,099 |
Basic net income per share | $0.61 | $0.91 | $0.43 |
Diluted net income per share | $0.59 | $0.89 | $0.42 |
Shares used in per share calculations: | |||
Basic | 16,323 | 14,792 | 14,182 |
Diluted | 16,828 | 15,150 | 14,390 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income | $9,930 | $13,418 | $6,099 |
Other comprehensive income (loss): | |||
Unrealized holding gains (losses), net of tax | -3 | 1 | -11 |
Change in cumulative translation adjustment, net of tax | -3,242 | 833 | 347 |
Total other comprehensive income (loss), net of tax | -3,245 | 834 | 336 |
Comprehensive income | $6,685 | $14,252 | $6,435 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
In Thousands, except Share data | |||||
Beginning Balance at Dec. 31, 2011 | $59,297 | $142 | $90,711 | ($1,052) | ($30,504) |
Beginning Balance (in shares) at Dec. 31, 2011 | 14,165,000 | ||||
Common stock issued pursuant to stock plans (in shares) | 307,000 | ||||
Common stock issued pursuant to stock plans | 398 | 3 | 395 | ||
Common stock repurchased, shares | -273,000 | ||||
Common stock repurchased | -1,332 | -3 | -1,329 | ||
Value of vested restricted stock withheld for tax liability | -339 | -339 | |||
Stock-based compensation | 1,459 | 1,459 | |||
Foreign currency translation, net of tax | 347 | 347 | |||
Unrealized holding gain (loss) on investments, net of tax | -11 | -11 | |||
Net income | 6,099 | 6,099 | |||
Ending Balance at Dec. 31, 2012 | 65,918 | 142 | 90,897 | -716 | -24,405 |
Ending Balance (in shares) at Dec. 31, 2012 | 14,199,000 | ||||
Common stock issued pursuant to stock plans (in shares) | 421,000 | ||||
Common stock issued pursuant to stock plans | 1,582 | 4 | 1,578 | ||
Common stock repurchased, shares | -10,000 | ||||
Common stock repurchased | -58 | -58 | |||
Common stock issued in connection with acquisition (in shares) | 1,608,000 | ||||
Common stock issued in connection with acquisition | 14,524 | 16 | 14,508 | ||
Value of vested restricted stock withheld for tax liability | -476 | -476 | |||
Stock-based compensation | 1,614 | 1,614 | |||
Tax benefit (Reversal of tax benefit) related to stock-based awards | -155 | -155 | |||
Foreign currency translation, net of tax | 833 | 833 | |||
Unrealized holding gain (loss) on investments, net of tax | 1 | 1 | |||
Net income | 13,418 | 13,418 | |||
Ending Balance at Dec. 31, 2013 | 97,201 | 162 | 107,908 | 118 | -10,987 |
Ending Balance (in shares) at Dec. 31, 2013 | 16,218,000 | ||||
Common stock issued pursuant to stock plans (in shares) | 363,000 | ||||
Common stock issued pursuant to stock plans | 2,101 | 4 | 2,097 | ||
Common stock repurchased, shares | -183,962 | -115,000 | |||
Common stock repurchased | -1,070 | -1 | -1,069 | ||
Value of vested restricted stock withheld for tax liability | -699 | -699 | |||
Stock-based compensation | 2,482 | 2,482 | |||
Tax benefit (Reversal of tax benefit) related to stock-based awards | 761 | 761 | |||
Foreign currency translation, net of tax | -3,242 | -3,242 | |||
Unrealized holding gain (loss) on investments, net of tax | -3 | -3 | |||
Net income | 9,930 | 9,930 | |||
Ending Balance at Dec. 31, 2014 | $107,461 | $165 | $111,480 | ($3,127) | ($1,057) |
Ending Balance (in shares) at Dec. 31, 2014 | 16,466,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income | $9,930 | $13,418 | $6,099 |
Adjustments to reconcile net income to net cash flows provided by operating activities, net of acquisitions: | |||
Depreciation | 3,335 | 3,661 | 3,547 |
Amortization | 3,011 | 1,522 | 1,082 |
Stock-based compensation | 2,482 | 1,614 | 1,459 |
Loss on write-down or disposal of long-lived assets | 45 | 8 | 4 |
Deferred income taxes | -398 | -7,176 | -113 |
Excess tax benefits related to stock option exercises | -853 | ||
(Increase) decrease, net of effect of acquisitions, in: | |||
Accounts receivable, net | 5,371 | -4,606 | 2,804 |
Inventories | -1,063 | 3,429 | -1,493 |
Prepaid expenses and other | 898 | 1,989 | 1,677 |
Increase (decrease), net of effect of acquisitions, in: | |||
Accounts payable | 44 | 657 | -177 |
Deferred revenue | -704 | -788 | -1,867 |
Accrued and other long-term liabilities | 2,105 | -1,483 | -2,434 |
Net cash provided by operating activities | 24,203 | 12,245 | 10,588 |
Cash flows from investing activities: | |||
Purchase of marketable securities | -2,947 | -15,312 | -9,145 |
Proceeds from sale of marketable securities | 5,596 | 16,357 | 8,302 |
Decrease in restricted cash | 952 | 33 | 425 |
Purchase of fixed assets | -4,856 | -1,692 | -1,767 |
Proceeds from sale of fixed assets and assets held for sale | 34 | 16 | 25 |
Cash paid for acquisitions, net of cash acquired | -1,528 | -13,253 | |
Net cash used in investing activities | -2,749 | -13,851 | -2,160 |
Cash flows from financing activities: | |||
Principal payments on capital lease obligations | -2 | -16 | |
Withholding taxes paid on net settlement of vested restricted stock units | -699 | -476 | -339 |
Excess tax benefits related to stock option exercises | 853 | ||
Proceeds from issuances of common stock | 2,101 | 1,582 | 398 |
Cash paid for repurchase of common stock | -1,070 | -58 | -1,332 |
Net cash provided by (used in) financing activities | 1,185 | 1,046 | -1,289 |
Effect of exchange rate changes on cash and cash equivalents | -1,704 | -195 | 132 |
Increase (decrease) in cash and cash equivalents | 20,935 | -755 | 7,271 |
Cash and cash equivalents: | |||
Beginning of year | 17,172 | 17,927 | 10,656 |
End of year | 38,107 | 17,172 | 17,927 |
Supplemental disclosure of cash flow information: | |||
Cash paid for income taxes, net | 1,282 | 566 | 1,552 |
Supplemental disclosure of non-cash information: | |||
Common stock issued in connection with acquisitions | 14,524 | ||
Fair value of assets acquired from acquisitions, net of cash | 35,209 | ||
Liabilities assumed from acquisitions | 4,893 | ||
Payable for fixed assets | 525 | ||
Transfer from (to) inventory to (from) fixed assets | ($182) | ($94) | $1,038 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Summary of Significant Accounting Policies | NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Nature of Business | |||||||||||||
We design, develop, manufacture and market advanced wafer probing, thermal and reliability solutions for the electrical measurement and testing of high performance semiconductor devices. Our products enable precision on-wafer measurement of integrated circuits and are typically used in the early phases of the development of semiconductor processes where the accuracy and repeatability of measurements is critical to achieving yield from advanced process nodes. They are also used in production applications to test semiconductor devices prior to completion of the manufacturing process. We design, manufacture and assemble our products in Beaverton, Oregon, North St. Paul, Minnesota, Munich, Germany, and Dresden, Germany and maintain global sales, service and support centers in North America, Germany, Japan, Taiwan, China and Singapore. | |||||||||||||
Principles of Consolidation | |||||||||||||
The consolidated financial statements include the accounts of Cascade Microtech, Inc. and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. | |||||||||||||
Use of Estimates in Financial Reporting | |||||||||||||
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as revenues and expenses reported for the periods presented. On an on-going basis, we evaluate our estimates, including those related to revenue recognition, allowance for doubtful accounts, valuation of excess and obsolete inventory, lives and recoverability of equipment and other long-lived assets, goodwill impairment, warranty liabilities, deferred tax asset valuation allowance, unrecognized tax benefits, stock-based compensation, lease abandonment costs, contingencies and litigation. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. | |||||||||||||
Cash and Cash Equivalents | |||||||||||||
We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. Our cash balances with financial institutions may exceed the deposit insurance limits. Included in cash and cash equivalents were cash equivalents of $6.6 million and $4.0 million at December 31, 2014 and 2013, respectively, which consisted primarily of money market funds, and are stated at cost, which approximates market value. | |||||||||||||
Marketable Securities | |||||||||||||
We classify our marketable securities as available-for-sale and, accordingly, record them at fair value. Unrealized holding gains and losses are excluded from earnings and are reported as a separate component of Shareholders’ equity until realized. Dividend and interest income is recognized when earned. Realized gains and losses are included in earnings and are derived using the specific identification method for determining the cost of securities sold. | |||||||||||||
We periodically evaluate whether declines in fair values of our investments below their cost are “other-than-temporary.” This evaluation consists of qualitative and quantitative factors regarding the severity and duration of the unrealized loss, as well as our ability and intent to hold the investment until a forecasted recovery occurs. | |||||||||||||
Restricted Cash | |||||||||||||
Our restricted cash is held in accounts with banks that have issued guarantees to our customers for advance deposits on goods and services. The guarantees allow the banks to withdraw the restricted cash from our accounts and return the advanced deposit to the customer if goods are not delivered or services are not properly performed. All of the guarantees expire within 12 months of the balance sheet date and, accordingly, are recorded as a current asset in our Consolidated Balance Sheets. | |||||||||||||
Trade Accounts Receivable | |||||||||||||
Trade accounts receivable are recorded at their invoiced amount and do not bear interest. The allowance for doubtful accounts is our best estimate of the amount of probable credit losses in our existing accounts receivable. We determine our allowance for doubtful accounts utilizing historical collection percentages considering the aging of the accounts and known trends with current customers, including recent significant changes in their financial position. | |||||||||||||
Activity related to our allowance for doubtful accounts was as follows (in thousands): | |||||||||||||
Balance, December 31, 2011 | $ | 266 | |||||||||||
Charges to costs and expenses | 133 | ||||||||||||
Write-offs | (155 | ) | |||||||||||
Recoveries | 101 | ||||||||||||
Balance, December 31, 2012 | 345 | ||||||||||||
Charges to costs and expenses | 20 | ||||||||||||
Write-offs | (96 | ) | |||||||||||
Recoveries | — | ||||||||||||
Balance, December 31, 2013 | 269 | ||||||||||||
Charges to costs and expenses | (50 | ) | |||||||||||
Write-offs | (14 | ) | |||||||||||
Recoveries | 3 | ||||||||||||
Balance, December 31, 2014 | $ | 208 | |||||||||||
Inventories | |||||||||||||
Inventories are stated at the lower of standard cost, which approximates cost computed on a first-in, first-out basis, or market, and include materials, labor and manufacturing overhead. Demonstration goods, which are included as a component of finished goods, represent inventory that is used for customer demonstration purposes. This inventory is typically sold after 12 to 18 months. We analyze the carrying value of our inventory quarterly, considering a combination of factors including, but not limited to, the following: forecasted sales or usage, historical usage rates, estimated service period, product end-of-life dates, estimated current and future market values, service inventory requirements and new product introductions. We estimate market value based on factors including, but not limited to, replacement cost and estimated resale value with declines in value below cost being recorded quarterly as a component of cost of sales, therefore establishing a new cost basis for the inventory. | |||||||||||||
Inventory charges were as follows (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Inventory charges | $ | 1,816 | $ | 1,559 | $ | 1,381 | |||||||
Fixed Assets | |||||||||||||
Equipment and leasehold improvements are stated at cost. Equipment under capital lease is recorded at the net present value of the future minimum lease payments at the inception of the lease. Maintenance and repairs are expensed as incurred. We do not accrue for the future cost of periodic major overhauls and planned maintenance of plant and equipment in annual or interim periods. Depreciation of owned equipment is provided using the straight-line method over the estimated useful lives of the assets, ranging from two to seven years. Amortization of equipment under capital leases and leasehold improvements is provided using the straight-line method over the life of the lease or the useful life of the asset, whichever is shorter. Fixed assets are reviewed for impairment as discussed below under “Accounting for the Impairment of Long-Lived Assets.” We did not capitalize any interest during 2014, 2013 or 2012. | |||||||||||||
Goodwill | |||||||||||||
Goodwill represents the excess of the aggregate purchase price over the fair value of the net assets acquired | |||||||||||||
in a purchase business combination. Goodwill is not amortized but rather is reviewed for impairment at least annually, or more frequently if a triggering event occurs. We first make a qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount before applying the two-step goodwill impairment test. If the conclusion is that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we then perform a two-step goodwill impairment test. Under the first step, the fair value of the reporting unit is compared to its carrying value, and, if an indication of goodwill impairment exists in the reporting unit, the enterprise must perform step two of the impairment test (measurement). Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill as determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation. The residual fair value after this allocation is the implied fair value of the reporting unit goodwill. If the fair value of the reporting unit exceeds its carrying value, step two does not need to be performed. | |||||||||||||
Goodwill at December 31, 2014 relates to the following: | |||||||||||||
• | our January 2010 acquisition of SUSS MicroTec Test Systems GmbH (“SUSS Test”); | ||||||||||||
• | our July 2013 acquisition of the Reliability Test Product (“RTP”) division of Aetrium Incorporated; and | ||||||||||||
• | our October 2013 acquisition of ATT Advanced Temperature Test Systems GmbH (“ATT Systems”). | ||||||||||||
This goodwill relates to our Systems segment and represents the value of assembled workforce and other intangible assets that do not qualify for separate recognition. Our assessments performed in the fourth quarters of 2014, 2013 and 2012 did not indicate any impairment of goodwill. | |||||||||||||
Purchased Intangible Assets | |||||||||||||
Purchased intangible assets include various intangible assets acquired through business acquisitions. These assets are amortized using the straight-line method over their estimated useful lives of one to twelve years. Purchased intangible assets are reviewed for impairment as discussed below under “Accounting for the Impairment of Long-Lived Assets.” | |||||||||||||
Other Assets | |||||||||||||
Other long-term assets at December 31, 2014 and 2013 included $0.1 million and $0.3 million, respectively, of internally developed patents, net. These assets are amortized using the straight-line method over estimated useful lives of one to eight years and have no significant residual value. Patent amortization is included as a component of Selling, general and administrative expense. Patents are reviewed for impairment as discussed below under “Accounting for the Impairment of Long-Lived Assets.” | |||||||||||||
Accounting for the Impairment of Long-Lived Assets | |||||||||||||
Long-lived assets held and used by us, including fixed assets, patents and intangible assets with determinable lives, are reviewed for impairment whenever events or circumstances indicate that the carrying amount of assets may not be recoverable. We evaluate recoverability of assets to be held and used by comparing the carrying amount of an asset to future net undiscounted cash flows to be generated by the asset. If such assets are considered not to be recoverable, an impairment charge is recognized for the amount by which the carrying value of the assets exceeds the fair value of the assets. Such reviews assess the fair value of the assets based upon estimates of discounted future cash flows that the assets are expected to generate. | |||||||||||||
We did not record any impairment charges related to long-lived assets during 2014, 2013 or 2012. | |||||||||||||
Revenue Recognition | |||||||||||||
Revenue from product sales to customers and distributors that do not have special acceptance criteria is recognized when a written purchase order has been obtained, the price is fixed and determinable, the product is shipped, title has transferred and collectability is reasonably assured. Generally, we ship our products with origin terms. For any shipments with destination terms, we defer revenue until delivery to the customer. Revenue from customers who have special acceptance criteria beyond our standard terms and conditions is not recognized until all acceptance criteria are satisfied. Revenue for installation services, consisting of assembly and testing, is recognized when the services are performed. | |||||||||||||
We sell our products to end-users through a combination of manufacturers’ representatives, distributors and direct sales people: | |||||||||||||
• | manufacturers’ representatives are independent companies that agree to sell our products at our prices and on our terms and they are paid a commission based on a percentage of their sales of our products; | ||||||||||||
• | distributors purchase our products directly from us and pay us directly according to our standard terms and conditions; they then resell the products to end users at prices and terms set by them; and | ||||||||||||
• | the direct sales force consists of our salaried and commissioned employees. | ||||||||||||
Our transactions may involve the sale of systems and services under multiple element arrangements. Revenue under multiple element arrangements is allocated based on the fair value of each element. A typical multiple element arrangement may include some or all of the following components: products, accessories, installation services and extended warranty contracts. The total sales price is allocated based on the relative fair value of each component. We record deferred revenue for service contracts and customer deposits. Deferred revenue related to service contracts and extended warranties is recognized over the life of the contract based on the stated contractual price, typically one to two years. | |||||||||||||
Taxes Collected from Customers and Remitted to Governmental Authorities | |||||||||||||
We account for tax assessed by a governmental authority that is directly imposed on a revenue-producing transaction (i.e., sales, use, value added) on a net (excluded from revenue) basis. | |||||||||||||
Shipping and Handling Costs | |||||||||||||
Shipping and handling costs are included as a component of Cost of sales. | |||||||||||||
Significant Customers | |||||||||||||
No customer in 2014, 2013 or 2012 accounted for 10% or more of our total revenues. At December 31, 2014 and 2013, no customers represented 10% or more of our gross accounts receivable balance. | |||||||||||||
Product Warranty | |||||||||||||
We estimate a liability for costs to repair or replace products under warranty for periods ranging from 90 days to one year when the related product revenue is recognized. The liability for product warranties is calculated as a percentage of sales. The percentage is based on historical product repair costs. The liability for product warranties is included in Accrued liabilities. Product warranty activity was as follows (in thousands): | |||||||||||||
Warranty accrual, December 31, 2011 | $ | 729 | |||||||||||
Reductions for warranty charges | (888 | ) | |||||||||||
Additions to warranty reserve | 875 | ||||||||||||
Warranty accrual, December 31, 2012 | 716 | ||||||||||||
Reductions for warranty charges | (798 | ) | |||||||||||
Additions to warranty reserve | 827 | ||||||||||||
Warranty accrual, December 31, 2013 | 745 | ||||||||||||
Reductions for warranty charges | (812 | ) | |||||||||||
Additions to warranty reserve | 864 | ||||||||||||
Warranty accrual, December 31, 2014 | $ | 797 | |||||||||||
Additions to the warranty reserve in 2013 include accrued warranty costs of $0.2 million assumed with the acquisitions in 2013 as discussed in Note 3. | |||||||||||||
Advertising | |||||||||||||
Advertising costs, which are included as a component of Selling, general and administrative expense, are expensed as incurred and have been insignificant. | |||||||||||||
Research and Development | |||||||||||||
Research and development costs are expensed as incurred. | |||||||||||||
Legal Costs | |||||||||||||
We may be a party to legal proceedings arising in the normal course of business. We accrue for certain legal costs, including attorney fees, and potential settlement claims related to various legal proceedings that are estimable and probable. If not estimable and probable, legal costs are expensed as incurred. Legal costs related to patents are included in Research and development expense. All other legal costs are included in Selling, general and administrative expense. | |||||||||||||
Forward Exchange Contracts | |||||||||||||
We enter into forward foreign currency exchange contracts, which typically expire within six months, to manage our exposure against foreign currency fluctuations in either the euro or Japanese yen. These foreign exchange contracts are not considered hedges and, as such, are recorded at fair value on the balance sheet with any changes in fair value included as Other income (expense), net in our Consolidated Statements of Operations. At December 31, 2014 and 2013, we had $25.3 million and $27.1 million, respectively, of forward exchange contracts outstanding. The unrealized gain (loss) on contracts outstanding was as follows (in thousands): | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Unrealized gain (loss) | $ | 1,020 | $ | (437 | ) | ||||||||
Income Taxes | |||||||||||||
Deferred income taxes are established for the difference between the financial reporting and income tax basis of assets and liabilities as well as operating loss and tax credit carryforwards. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that all or some portion of the deferred tax assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. | |||||||||||||
We recognize the benefits of tax return positions if we determine that the positions are “more-likely-than-not” to be sustained by the taxing authority. Interest and penalties accrued on unrecognized tax benefits are recorded as tax expense in the period incurred. We are subject to income taxes within the U.S. and foreign jurisdictions, and, in the ordinary course of business, there are transactions and calculations where the ultimate tax determination is uncertain. We report a liability (or contra asset) for unrecognized tax benefits resulting from uncertain tax positions taken, or expected to be taken, in a tax return. | |||||||||||||
Net Income Per Share | |||||||||||||
Basic net income per share is computed by dividing the net income attributed to common shareholders for the period by the weighted average number of shares of common stock outstanding during the period. Diluted net income per share incorporates the incremental shares issuable upon the assumed exercise of stock options and vesting of restricted stock units using the treasury stock method, if dilutive. | |||||||||||||
The following table reconciles the shares used in calculating basic net income per share and diluted net income per share (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Shares used to calculate basic net income per share | 16,323 | 14,792 | 14,182 | ||||||||||
Dilutive effect of outstanding options and restricted stock units (“RSUs”) | 505 | 358 | 208 | ||||||||||
Shares used to calculate diluted net income per share | 16,828 | 15,150 | 14,390 | ||||||||||
Securities not considered as they would have been antidilutive | 793 | 1,094 | 1,271 | ||||||||||
Stock-Based Compensation | |||||||||||||
We calculate stock-based compensation expense utilizing fair value-based methodologies and recognize the expense on a straight-line basis over the vesting period of such awards. The fair value of stock option awards is based on the Black-Scholes option pricing model, and the fair value of restricted stock units and stock awards is based on the fair value of our common stock on the date of grant. Compensation expense recorded for awards that do not vest is reversed in the period that it is determined that the award will not vest. | |||||||||||||
Certain Risks and Uncertainties | |||||||||||||
Our future operating results and financial condition are subject to influences driven by rapid technological changes, a highly competitive industry, a lengthy sales cycle, and the cyclical nature of general economic conditions. Future operating results will depend on many factors, including demand for our products, the introduction and industry acceptance of new products and the level and timing of available shippable orders and backlog. | |||||||||||||
In addition, we rely on several suppliers to provide certain key components used in our products. Some of these items are available from only one supplier or a limited group of suppliers. Any disruption in the availability and delivery of these items could adversely affect our revenues and results of operations. | |||||||||||||
Segment Reporting | |||||||||||||
We operate in two business segments: Systems and Probes. Sales of our probe stations, reliability test systems and thermal subsystems are included in the Systems segment. Sales of our analytical probes and production probe cards are included in the Probes segment. | |||||||||||||
Foreign Currency Translation | |||||||||||||
The local currency is the functional currency for each of our foreign subsidiaries. Assets and liabilities are translated into U.S. dollars at current exchange rates, and sales and expenses are translated using average rates. Gains and losses from translation of assets and liabilities are included in Accumulated other comprehensive income (loss) in our Consolidated Balance Sheets. |
Recent_Accounting_Guidance
Recent Accounting Guidance | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Changes and Error Corrections [Abstract] | ||
Recent Accounting Guidance | NOTE 2. | RECENT ACCOUNTING GUIDANCE |
ASU 2014-17 | ||
In November 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-17, “Business Combinations (Topic 805).” ASU 2014-17 addresses whether an acquired entity can reflect the acquirer’s accounting and reporting basis (pushdown accounting) in its separate financial statements. ASU 2014-17 became effective November 18, 2014. The adoption of ASU 2014-17 did not have any effect on our financial position, results of operations or cash flows. | ||
ASU 2014-16 | ||
In November 2014, the FASB issued ASU 2014-16, “Derivatives and Hedging (Topic 815).” ASU 2014-16 addresses whether the host contract in a hybrid financial instrument issued in the form of a share should be accounted for as debt or equity. ASU 2014-16 is effective for annual periods and interim periods beginning after December 15, 2015. We do not currently have issued, nor are we investors in, hybrid financial instruments. Accordingly, we do not expect the adoption of ASU 2014-16 to have any effect on our financial position, results of operations or cash flows. | ||
ASU 2014-12 | ||
In June 2014, the FASB issued ASU 2014-12, “Compensation – Stock Compensation (Topic 718).” ASU 2014-12 addresses accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. ASU 2014-12 indicates that, in such situations, the performance target should be treated as a performance condition and, accordingly, the performance target should not be reflected in estimating the grant-date fair value of the award. Instead, compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved. ASU 2014-12 is effective for annual periods and interim periods beginning after December 15, 2015. We do not expect the adoption of ASU 2014-12 to have a material effect on our financial position, results of operations or cash flows. | ||
ASU 2014-09 | ||
In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 clarifies the principles for recognizing revenue and develops a common revenue standard for GAAP and the International Accounting Standards Board. ASU 2014-09 is effective for annual and interim periods beginning on or after December 15, 2016. Early adoption is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect that ASU 2014-09 will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. | ||
ASU 2013-11 | ||
In July 2013, the FASB issued ASU No. 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” ASU 2013-11 amends the guidance related to the presentation of unrecognized tax benefits and allows for the reduction of a deferred tax asset for a net operating loss (“NOL”) carryforward whenever the NOL or tax credit carryforward would be available to reduce the additional taxable income or tax due if the tax position is disallowed. ASU 2013-11 is effective for annual and interim periods for fiscal years beginning after December 15, 2013, and early adoption is permitted. Since ASU 2013-11 relates only to the presentation of unrecognized tax benefits, our adoption of ASU 2013-11 in January 2014 did not have a material effect on our financial position, results of operations or cash flows. |
Acquisitions
Acquisitions | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Business Combinations [Abstract] | |||||||||
Acquisitions | NOTE 3. ACQUISITIONS | ||||||||
ATT Systems | |||||||||
On October 1, 2013, we acquired all of the outstanding shares of Advanced Temperature Test Systems GmbH (“ATT Systems”) for consideration of 9.6 million euro, or approximately $13.0 million, and 1.6 million shares of our common stock valued at $14.5 million. Approximately 8.8 million euro were paid at closing, 0.4 million euro was paid on October 1, 2014 and 0.4 million euro are to be paid on October 1, 2015. In addition, in December 2013, a working capital adjustment totaling 0.2 million euro, or approximately $0.2 million, was made as an adjustment to increase the purchase price and was paid in January 2014. | |||||||||
We believe the acquisition of ATT Systems (the “ATT Acquisition”) strategically positions the combined company for future system development and access to larger markets. | |||||||||
The allocation of the purchase price for the ATT Acquisition was as follows (dollars in thousands): | |||||||||
Assets: | Useful Life | ||||||||
Cash | $ | 559 | — | ||||||
Accounts receivable | 408 | — | |||||||
Inventory | 2,585 | — | |||||||
Prepaid expenses and other | 1,393 | — | |||||||
Fixed assets | 137 | 3 years | |||||||
Goodwill | 12,551 | — | |||||||
Other intangible assets: | |||||||||
Core technology | 10,266 | 6 years | |||||||
Customer relationships | 3,377 | 8 years | |||||||
Trademarks and tradenames | 1,216 | 10 years | |||||||
14,859 | |||||||||
32,492 | |||||||||
Liabilities: | |||||||||
Accounts payable | 518 | — | |||||||
Accrued liabilities | 252 | — | |||||||
Long-term deferred tax liability | 4,061 | 6 -10 years | |||||||
4,831 | |||||||||
Net assets acquired | $ | 27,661 | |||||||
The key factors attributable to the creation of goodwill by the ATT Acquisition are the assembled workforce and our assessment regarding the ability of the business to generate cash flows beyond the lives of the finite-lived intangible assets. None of the goodwill or purchased intangibles are expected to be deductible for income tax purposes. The weighted average amortization period as of the date of closing for all intangible assets acquired is 6.8 years. | |||||||||
The long-term deferred tax liability relates to the difference between the fair value of the acquired net assets, excluding goodwill, and their respective carryover historical tax basis and will generally be amortized over the life of the acquired intangibles. | |||||||||
Transaction costs of $0.7 million were expensed as incurred as a component of Selling, general and administrative expenses. | |||||||||
ATT System’s results of operations have been included in our consolidated financial statements and Systems segment subsequent to the date of acquisition as follows (in thousands): | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Revenue | $ | 12,936 | $ | 3,778 | |||||
Operating income | 2,749 | 448 | |||||||
The unaudited pro forma results of operations, as if the ATT Acquisition had occurred on January 1, 2012 were as follows (in thousands): | |||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | ||||||||
Pro forma revenue | $ | 127,618 | $ | 118,508 | |||||
Pro forma net income | 14,564 | 5,834 | |||||||
Pro forma basic net income per share | 0.9 | 0.37 | |||||||
Pro forma diluted net income per share | 0.88 | 0.36 | |||||||
RTP | |||||||||
On July 31, 2013, we acquired certain assets of RTP for $1.9 million in cash (the “RTP Acquisition”), and contingent consideration of $0.8 million, which was paid during 2014. The fair value of the contingent consideration was determined to be $1.3 million as of the acquisition date and, accordingly, $0.5 million was credited to Selling, general and administrative expenses during 2014 as the liability was settled. | |||||||||
We believe the RTP Acquisition expands our product portfolio and served available market while leveraging our existing sales and service channel. The results of operations of the RTP Acquisition are included in our Systems segment. | |||||||||
The allocation of the purchase price for the RTP Acquisition was as follows (dollars in thousands): | |||||||||
Useful Life | |||||||||
Current assets | $ | 1,198 | — | ||||||
Fixed assets | 17 | 2 years | |||||||
Goodwill | 641 | — | |||||||
Other intangible assets: | |||||||||
Core technology | 930 | 5 years | |||||||
Customer relationships | 490 | 12 years | |||||||
1,420 | |||||||||
Current liabilities | (62 | ) | — | ||||||
Net assets acquired | $ | 3,214 | |||||||
The key factor attributable to the creation of goodwill by the transaction is the assembled workforce. All of the goodwill and purchased intangibles are expected to be deductible for income tax purposes. The weighted average amortization period as of the date of closing for all intangible assets acquired is 7.4 years. | |||||||||
Transaction costs of $0.2 million associated with the RTP Acquisition were expensed as incurred as a component of Selling, general and administrative expenses. | |||||||||
RTP’s results of operations have been included in our consolidated financial statements and Systems segment subsequent to the date of acquisition as follows (in thousands): | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Revenue | $ | 2,954 | $ | 1,222 | |||||
Operating loss | 595 | 40 | |||||||
Pro forma results of operations have not been presented because the effect of the acquisition was not material to prior period financial statements. |
Marketable_Securities
Marketable Securities | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||
Marketable Securities | NOTE 4. | MARKETABLE SECURITIES | |||||||
Certain information regarding our marketable securities was as follows (in thousands): | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Fair value: | |||||||||
Corporate obligations | $ | 1,620 | $ | 4,277 | |||||
Corporate equities | 6 | 1 | |||||||
$ | 1,626 | $ | 4,278 | ||||||
Cost: | |||||||||
Corporate obligations | $ | 1,620 | $ | 4,276 | |||||
Corporate equities | 6 | 1 | |||||||
$ | 1,626 | $ | 4,277 | ||||||
Fair value by maturity: | |||||||||
Within one year | $ | 1,620 | $ | 4,277 | |||||
One to two years | — | — | |||||||
Corporate equities | 6 | 1 | |||||||
$ | 1,626 | $ | 4,278 | ||||||
Gross unrealized holding gains: | |||||||||
Corporate obligations | $ | — | $ | 1 | |||||
U.S. treasury and agency securities | — | — | |||||||
$ | — | $ | 1 | ||||||
Gross unrealized holding losses: | |||||||||
Corporate obligations | $ | — | $ | — | |||||
U.S. treasury and agency securities | — | — | |||||||
$ | — | $ | — | ||||||
Realized gains and losses on marketable securities were immaterial during 2014, 2013 and 2012. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value Measurements | NOTE 5. FAIR VALUE MEASUREMENTS | ||||||||||||||||
Various inputs are used in determining the fair value of our financial assets and liabilities and are summarized into three broad categories: | |||||||||||||||||
• | Level 1 – quoted prices in active markets for identical securities; | ||||||||||||||||
• | Level 2 – other significant observable inputs, including quoted prices for similar securities, interest rates, credit risk, etc.; and | ||||||||||||||||
• | Level 3 – significant unobservable inputs, including our own assumptions in determining fair value. | ||||||||||||||||
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. | |||||||||||||||||
The disclosures related to our financial assets and (liabilities) that are reported at fair value on a recurring basis are as follows (in thousands): | |||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||
Fair Value | Input Level | Fair Value | Input Level | ||||||||||||||
Marketable securities – corporate equities | $ | 6 | Level 1 | $ | 1 | Level 1 | |||||||||||
Marketable securities – corporate obligations | $ | 1,620 | Level 2 | $ | 4,277 | Level 2 | |||||||||||
Forward sale contracts for Japanese yen | $ | 2,510 | Level 2 | $ | 523 | Level 2 | |||||||||||
Forward purchase contract for euro | $ | 726 | Level 2 | $ | 2,061 | Level 2 | |||||||||||
Forward sale contract for euro | $ | 22,056 | Level 2 | $ | 24,561 | Level 2 | |||||||||||
Contingent consideration related to the RTP Acquisition | $ | — | Level 3 | $ | (1,350 | ) | Level 3 | ||||||||||
The fair value of our marketable securities is determined based on quoted market prices for similar or identical securities. The fair value of our forward contracts is based on quoted market prices for similar securities and is used for the purpose of determining any gain or loss on our foreign currency positions. We do not record the full value of the forward contracts in our Condensed Consolidated Balance Sheets. We record the net unrealized gain or loss in our Consolidated Statements of Operations and as a component of Other income (expense). | |||||||||||||||||
The fair value of the contingent consideration related to the RTP Acquisition was determined based on the present value of probability weighted payments expected to be made under the terms of the agreement. | |||||||||||||||||
The carrying values of Cash and cash equivalents, Restricted cash, Accounts receivable, Prepaid expenses and other, Accounts payable and Accrued liabilities approximate fair value due to their short maturities. | |||||||||||||||||
No changes were made to our valuation techniques during 2014. | |||||||||||||||||
The following table summarizes our Level 3 activity for our contingent consideration liability (in thousands): | |||||||||||||||||
Level 3 | |||||||||||||||||
Balance at December 31, 2013 | $ | 1,350 | |||||||||||||||
Decrease in contingent consideration due to re-measurement | (522 | ) | |||||||||||||||
Payment of contingent consideration | (828 | ) | |||||||||||||||
Balance at December 31, 2014 | $ | — | |||||||||||||||
Inventories
Inventories | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories | NOTE 6. INVENTORIES | ||||||||
Inventories consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 14,120 | $ | 15,234 | |||||
Work-in-process | 3,809 | 2,958 | |||||||
Finished goods | 6,713 | 6,692 | |||||||
$ | 24,642 | $ | 24,884 | ||||||
Fixed_Assets
Fixed Assets | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||
Fixed Assets | NOTE 7. FIXED ASSETS | ||||||||||||
Fixed assets consisted of the following (in thousands): | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Equipment | $ | 25,749 | $ | 25,673 | |||||||||
Leasehold improvements | 9,220 | 8,253 | |||||||||||
Construction in progress | 1,538 | 207 | |||||||||||
36,507 | 34,133 | ||||||||||||
Less accumulated depreciation | (28,407 | ) | (27,730 | ) | |||||||||
$ | 8,100 | $ | 6,403 | ||||||||||
Depreciation expense was as follows (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Depreciation expense | $ | 3,335 | $ | 3,661 | $ | 3,547 | |||||||
Goodwill_and_Purchased_Intangi
Goodwill and Purchased Intangible Assets | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||
Goodwill and Purchased Intangible Assets | NOTE 8. GOODWILL AND PURCHASED INTANGIBLE ASSETS | ||||||||||||
Goodwill | |||||||||||||
The change in goodwill was as follows (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance, beginning of period | $ | 14,471 | $ | 990 | $ | 971 | |||||||
Acquisition of RTP | — | 641 | — | ||||||||||
Acquisition of ATT Systems | — | 12,551 | — | ||||||||||
Effect of exchange rate changes | (1,648 | ) | 289 | 19 | |||||||||
Balance, end of period | $ | 12,823 | $ | 14,471 | $ | 990 | |||||||
Intangible Assets | |||||||||||||
Intangible assets, net included the following (in thousands): | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Purchased Intangible Assets | |||||||||||||
Customer relationships | $ | 4,323 | $ | 7,198 | |||||||||
Core technology | 12,481 | 13,728 | |||||||||||
Trademarks and tradenames | 1,092 | 1,239 | |||||||||||
17,896 | 22,165 | ||||||||||||
Less accumulated amortization | (5,324 | ) | (5,228 | ) | |||||||||
$ | 12,572 | $ | 16,937 | ||||||||||
Patents | |||||||||||||
Patents | $ | 4,632 | $ | 4,632 | |||||||||
Less accumulated amortization | (4,540 | ) | (4,349 | ) | |||||||||
$ | 92 | $ | 283 | ||||||||||
Intangible asset amortization is a component of Selling, general and administrative expense and was as follows (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Intangible amortization | $ | 3,011 | $ | 1,522 | $ | 1,082 | |||||||
The estimated amortization of intangible assets is as follows over the next five years and thereafter (in thousands): | |||||||||||||
2015 | $ | 2,632 | |||||||||||
2016 | 2,340 | ||||||||||||
2017 | 2,321 | ||||||||||||
2018 | 2,244 | ||||||||||||
2019 | 1,751 | ||||||||||||
Thereafter | 1,376 | ||||||||||||
$ | 12,664 | ||||||||||||
Accrued_Liabilities
Accrued Liabilities | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Accrued Liabilities | NOTE 9. ACCRUED LIABILITIES | ||||||||
Accrued liabilities consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Accrued compensation and benefits | $ | 3,606 | $ | 2,812 | |||||
Accrued sales taxes and VAT | 276 | 470 | |||||||
Accrued income taxes | 1,628 | 492 | |||||||
Accrued warranty | 797 | 745 | |||||||
Contingent consideration related to RTP acquisition | — | 1,350 | |||||||
Payable to seller related to ATT acquisition | 456 | 746 | |||||||
Accrued restructuring costs | 1,959 | 1,163 | |||||||
Other | 783 | 1,081 | |||||||
$ | 9,505 | $ | 8,859 | ||||||
Line_of_Credit
Line of Credit | 12 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
Line of Credit | NOTE 10. LINE OF CREDIT |
In August 2013, we entered into a line of credit agreement with JPMorgan Chase Bank, N.A. for a maximum $10.0 million line of credit facility (the “LOC”), which may be limited by a borrowing base. The LOC expires August 31, 2015 and contains a $2.5 million sublimit for letters of credit. Interest is based primarily on the London Interbank Offered Rate (“LIBOR”). The LOC contains restrictive and financial covenants. At December 31, 2014, no amounts were outstanding under the LOC, no letters of credit were outstanding and $10.0 million was available for borrowing. |
Tax_Provision
Tax Provision | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Tax Provision | NOTE 11. TAX PROVISION | ||||||||||||
Domestic and foreign pre-tax income from continuing operations was as follows (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Domestic | $ | 8,076 | $ | 5,619 | $ | 4,933 | |||||||
Foreign | 4,588 | 1,462 | 1,875 | ||||||||||
$ | 12,664 | $ | 7,081 | $ | 6,808 | ||||||||
The income tax expense (benefit) from continuing operations consisted of the following (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current: | |||||||||||||
Federal | $ | 1,086 | $ | (253 | ) | $ | 13 | ||||||
State | 184 | (39 | ) | 32 | |||||||||
Foreign | 1,862 | 1,039 | 752 | ||||||||||
Total current | 3,132 | 747 | 797 | ||||||||||
Deferred: | |||||||||||||
Federal | 133 | (5,912 | ) | — | |||||||||
State | 46 | (928 | ) | — | |||||||||
Foreign | (577 | ) | (244 | ) | (88 | ) | |||||||
Total deferred | (398 | ) | (7,084 | ) | (88 | ) | |||||||
Income tax (benefit) expense | $ | 2,734 | $ | (6,337 | ) | $ | 709 | ||||||
The income tax (benefit) provision varies from the amounts computed by applying the Federal statutory rate of 34% to income from continuing operations before income taxes as follows (in thousands): | |||||||||||||
Year Ended December 31, | Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Federal income tax provision computed at statutory rates | $ | 4,269 | $ | 2,407 | $ | 2,281 | |||||||
Difference in foreign tax rate | (405 | ) | 174 | (141 | ) | ||||||||
State income taxes, net of federal benefit | 142 | 140 | 27 | ||||||||||
Stock-based compensation | 142 | 966 | 96 | ||||||||||
Research and development tax credits | (33 | ) | (256 | ) | 56 | ||||||||
Expiration of tax credits | 236 | 167 | 200 | ||||||||||
Foreign tax credits | (2,527 | ) | (47 | ) | (136 | ) | |||||||
Foreign dividend | 1,281 | — | — | ||||||||||
Change in valuation allowance | (158 | ) | (9,656 | ) | (1,877 | ) | |||||||
Unrecognized tax benefits | 8 | 9 | 9 | ||||||||||
Foreign earnings not permanently reinvested | — | (207 | ) | (58 | ) | ||||||||
Domestic production deduction | (251 | ) | — | — | |||||||||
Other | 30 | (34 | ) | 252 | |||||||||
Provision for (benefit from) income taxes | $ | 2,734 | $ | (6,337 | ) | $ | 709 | ||||||
Deferred Tax Assets and Liabilities | |||||||||||||
Significant components of deferred income tax assets and liabilities were as follows (in thousands): | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Current deferred tax assets: | |||||||||||||
Reserves and allowances | $ | 273 | $ | 420 | |||||||||
Inventory | 1,037 | 1,019 | |||||||||||
Accrued vacation and bonus | 664 | 435 | |||||||||||
Unrealized loss on forward contracts | 856 | 132 | |||||||||||
Other current deferred tax assets | 197 | 262 | |||||||||||
Gross current deferred tax assets | 3,027 | 2,268 | |||||||||||
Valuation allowance | — | — | |||||||||||
Net current deferred tax assets | 3,027 | 2,268 | |||||||||||
Non-current deferred tax assets: | |||||||||||||
Reserves and allowances | 182 | 174 | |||||||||||
Federal and state net operating loss (“NOL”) carryforwards | 21 | 573 | |||||||||||
Federal and state tax credits | 1,781 | 2,640 | |||||||||||
Stock-based compensation | 565 | 506 | |||||||||||
Intangibles | 1,278 | 1,225 | |||||||||||
Other non-current deferred tax assets | 637 | 768 | |||||||||||
Gross non-current deferred tax assets | 4,464 | 5,886 | |||||||||||
Valuation allowance | — | (158 | ) | ||||||||||
Net non-current deferred tax assets | 4,464 | 5,728 | |||||||||||
Non-current deferred tax liabilities: | |||||||||||||
Foreign earnings | — | (536 | ) | ||||||||||
Intangibles | (2,936 | ) | (3,843 | ) | |||||||||
Other non-current deferred tax liabilities | (266 | ) | (114 | ) | |||||||||
Total non-current deferred tax liabilities | (3,202 | ) | (4,493 | ) | |||||||||
Non-current deferred tax assets, net | 1,262 | 1,235 | |||||||||||
Net total deferred tax assets | $ | 4,289 | $ | 3,503 | |||||||||
Deferred tax assets arise from the tax benefit of amounts expensed for financial reporting purposes but not yet realized for tax purposes and from unutilized tax credits and NOL carry forwards. We evaluate our deferred tax assets on a regular basis to determine if a valuation allowance is required. To the extent it is determined that it is more likely than not that we will not realize the benefit of our deferred tax assets, we record a valuation allowance against deferred tax assets. | |||||||||||||
The total valuation allowance was as follows (in thousands): | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Valuation allowance | $ | — | $ | 158 | |||||||||
The net decrease in the total valuation allowance was as follows (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Decrease in valuation allowance | $ | (158 | ) | $ | (9,656 | ) | $ | (1,877 | ) | ||||
The decrease in valuation allowance in 2014 was primarily related to utilization and expiration of state tax credits. The decrease in valuation allowance in 2013 was primarily related to release of the valuation allowance against U.S. deferred tax assets as of December 31, 2013 as it is more likely than not that these deferred tax assets will be realized. The decrease in valuation allowance in 2012 was primarily related to utilization of NOL carryforwards. | |||||||||||||
We had tax NOL and credit carryforwards as of December 31, 2014 as follows: | |||||||||||||
Amount | Expiration | ||||||||||||
Date | |||||||||||||
Federal and state research and experimentation credit carryforwards | $ | 1.8 million | 2014-2034 | ||||||||||
State NOL carryforwards | 0.8 million | 2016-2031 | |||||||||||
Unrecognized Tax Benefits | |||||||||||||
A reconciliation of unrecognized tax benefits was as follows (in thousands): | |||||||||||||
Balance, December 31, 2011 | $ | 141 | |||||||||||
Increases due to tax positions taken during the current year | — | ||||||||||||
Increases due to tax positions taken during a prior year | 9 | ||||||||||||
Balance, December 31, 2012 | 150 | ||||||||||||
Increases due to tax positions taken during the current year | 9 | ||||||||||||
Increases due to tax positions taken during a prior year | — | ||||||||||||
Balance, December 31, 2013 | 159 | ||||||||||||
Increases due to tax positions taken during the current year | — | ||||||||||||
Decreases due to tax positions taken during a prior year | (5 | ) | |||||||||||
Balance, December 31, 2014 | $ | 154 | |||||||||||
All of the unrecognized tax benefits at December 31, 2014 would have an impact on the effective tax rate if recognized. Interest and penalties in 2014, 2013 and 2012 were insignificant. Interest and penalties accrued on unrecognized tax benefits as of December 31, 2014 and 2013 were also insignificant. | |||||||||||||
The tax years that remained open to examination in our major taxing jurisdictions as of December 31, 2014 were as follows: | |||||||||||||
Jurisdiction | Open Tax Years | ||||||||||||
U.S. | 2011-2014 | ||||||||||||
Japan | 2008-2014 | ||||||||||||
Germany | 2010-2014 | ||||||||||||
Non-Repatriated Foreign Earnings | |||||||||||||
During the fourth quarter of 2014, we repatriated all of the distributable earnings of our subsidiary in Japan through a cash dividend totaling $2.5 million. The dividend included previously permanently reinvested earnings of $0.9 million. We did not provide for U.S. income taxes on the remaining undistributed earnings of our foreign subsidiaries because they were considered permanently reinvested outside of the U.S. as of December 31, 2014. Upon repatriation, some of these earnings would generate foreign tax credits, which may reduce the U.S. tax liability associated with any future foreign dividend. At December 31, 2014, the cumulative amount of earnings upon which U.S. income taxes have not been provided is approximately $8.0 million. The determination of the amount of unrecognized deferred U.S. income tax liability and foreign tax credit, if any, is not practicable to calculate. |
Other_Income_Expense_Net
Other Income (Expense), Net | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||
Other Income (Expense), Net | NOTE 12. OTHER INCOME (EXPENSE), NET | ||||||||||||
Other income (expense), net consisted of the following (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Interest income, net | $ | 29 | $ | 44 | $ | 52 | |||||||
Foreign currency losses | (3,629 | ) | (311 | ) | (950 | ) | |||||||
Gains on foreign currency forward contracts | 3,016 | 90 | 166 | ||||||||||
Other | (36 | ) | (75 | ) | (17 | ) | |||||||
$ | (620 | ) | $ | (252 | ) | $ | (749 | ) | |||||
StockBased_Compensation_and_St
Stock-Based Compensation and Stock-Based Plans | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Stock-Based Compensation and Stock-Based Plans | NOTE 13. STOCK-BASED COMPENSATION AND STOCK-BASED PLANS | ||||||||||||
Certain information regarding our stock-based compensation was as follows (in thousands, except per share amounts): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Weighted average grant-date per share fair value of stock options granted | $ | 5.58 | $ | 5.35 | $ | 2.56 | |||||||
Total intrinsic value of stock options exercised | 377 | 523 | 4 | ||||||||||
Fair value of restricted shares vested | 2,309 | 1,398 | 1,236 | ||||||||||
Tax benefit realized from stock options exercised and restricted stock units (“RSUs”) released | 954 | 729 | 436 | ||||||||||
Tax benefit recognized in our Consolidated Statements of Operations related to stock-based compensation | 750 | 537 | 25 | ||||||||||
Our stock-based compensation was included in our Consolidated Statements of Operations as follows (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Cost of sales | $ | 234 | $ | 201 | $ | 165 | |||||||
Research and development | 321 | 198 | 242 | ||||||||||
Selling, general and administrative | 1,927 | 1,215 | 1,052 | ||||||||||
$ | 2,482 | $ | 1,614 | $ | 1,459 | ||||||||
To determine the fair value of stock-based awards granted, we used the Black-Scholes option pricing model and the following weighted-average assumptions: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Stock Option Plan | |||||||||||||
Risk-free interest rate | 1.80% | 1.1% - 1.8% | 0.8% - 1.2% | ||||||||||
Expected dividend yield | 0.00% | 0.00% | 0.00% | ||||||||||
Expected term | 6.25 years | 6.25 years | 6.5 years | ||||||||||
Expected volatility | 61.20% | 60.6% - 61.0% | 58.2% - 59.4% | ||||||||||
Employee Stock Purchase Plan | |||||||||||||
Risk-free interest rate | 0.10% | 0.80% | 0.1% - 0.2% | ||||||||||
Expected dividend yield | 0.00% | 0.00% | 0.00% | ||||||||||
Expected term | 6 months | 6 months | 6 months | ||||||||||
Expected volatility | 35.4% - 37.8% | 24.5% - 31.5% | 40.1% - 54.3% | ||||||||||
The risk-free rate used is based on the U.S. Treasury yield over the expected term of the options granted. Our option pricing model utilizes the simplified method to estimate the expected term. The expected volatility for options granted pursuant to our stock incentive plans and for our employee stock purchase plan is calculated based on our historic volatility. We have not paid dividends in the past and we do not expect to pay dividends in the future and, therefore, the expected dividend yield is 0%. | |||||||||||||
We amortize stock-based compensation on a straight-line basis over the vesting period of the individual awards, which is the requisite service period, with estimated forfeitures considered. Shares to be issued upon the exercise of stock options will come from newly issued shares. | |||||||||||||
Stock Incentive Plans | |||||||||||||
Our stock incentive plans include our 2000 Stock Incentive Plan (the “2000 Plan”) and our 2010 Stock Incentive Plan (the “2010 Plan”) (together, the “Plans”) and provide for the granting of incentive stock options, nonqualified stock options and RSUs. Incentive stock options must be granted at an exercise price not less than 100% of the fair market value per share at the grant date. Nonqualified stock options granted or shares sold under the Plans cannot be granted or sold at a price less than 85% of the fair market value per share at the date of grant or sale. The contractual term of options granted under the Plans is ten years, and the right to exercise options granted generally vests 25% each year over four years. Grants of RSUs generally vest 25% each year over four years, or 50% each year over two years. Grants to outside Board members vest immediately upon grant. We have authorized a total of 3,000,000 shares of common stock for issuance under the 2000 Plan and 2,869,600 shares under the 2010 Plan. | |||||||||||||
At December 31, 2014, a total of 994,202 shares were available for future grants, and we had 2,306,705 shares of our common stock reserved for future issuance under the Plans. | |||||||||||||
Stock option activity for the year ended December 31, 2014 and other Plan information was as follows: | |||||||||||||
Options | Weighted | ||||||||||||
Outstanding | Average | ||||||||||||
Exercise Price | |||||||||||||
Outstanding at December 31, 2013 | 1,042,937 | $ | 6.52 | ||||||||||
Granted | 90,000 | 9.61 | |||||||||||
Exercised | (148,166 | ) | 9.9 | ||||||||||
Forfeited | (67,992 | ) | 9.01 | ||||||||||
Outstanding at December 31, 2014 | 916,779 | 6.1 | |||||||||||
Certain information regarding options outstanding as of December 31, 2014 was as follows: | |||||||||||||
Options | Options | ||||||||||||
Outstanding | Exercisable | ||||||||||||
Number | 916,779 | 555,689 | |||||||||||
Weighted-average exercise price | $ | 6.1 | $ | 5.48 | |||||||||
Aggregate intrinsic value | $ | 7,803,203 | $ | 5,071,011 | |||||||||
Weighted-average remaining contractual term (in years) | 6.38 | 5.36 | |||||||||||
RSU activity for the year ended December 31, 2014 was as follows: | |||||||||||||
Restricted | Weighted | ||||||||||||
Stock | Average | ||||||||||||
Units | Grant Date | ||||||||||||
Per Share | |||||||||||||
Fair Value | |||||||||||||
Outstanding at December 31, 2013 | 409,403 | $ | 6.87 | ||||||||||
Granted | 226,400 | 10.47 | |||||||||||
Vested | (205,739 | ) | 7.04 | ||||||||||
Forfeited | (34,340 | ) | 6.98 | ||||||||||
Outstanding at December 31, 2014 | 395,724 | 8.83 | |||||||||||
As of December 31, 2014, total unrecognized stock-based compensation related to outstanding, but unvested stock options and RSUs was $4.0 million, which will be recognized over the weighted average remaining vesting period of 2.2 years. | |||||||||||||
Employee Stock Purchase Plan | |||||||||||||
Our 2013 Employee Share Purchase Plan (the “2013 ESPP”) was approved by shareholders in May 2013. The terms of our 2013 ESPP provide for the sale and issuance of up to 1.0 million shares of our common stock. The 2013 ESPP replaced our 2004 Employee Share Purchase Plan (the “2004 ESPP”) for the six-month option period beginning on November 1, 2013. | |||||||||||||
Any eligible employee may participate in the 2013 ESPP by completing a subscription agreement which allows participants to have between 2% and 15% of their compensation withheld to purchase shares of common stock at 85% of the fair market value of a share of common stock on the enrollment date or on the exercise date, whichever is lower. No more than $12,500 can be withheld to purchase shares of common stock in each offering period. The exercise date is the last trading day of each offering period and participating employees are automatically enrolled in the new offering period. | |||||||||||||
The following information relates to our 2013 ESPP activity during 2014: | |||||||||||||
Shares issued pursuant to the 2013 ESPP | 70,533 | ||||||||||||
Weighted average price of shares issued | $ | 9 | |||||||||||
Discount per share from the fair market value on the dates of purchase | $ | 1.71 | |||||||||||
Shares remaining available for purchase pursuant to the 2013 ESPP as of December 31, 2014 | 929,467 | ||||||||||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Related Party Transactions [Abstract] | |||||||||||||
Related Party Transactions | NOTE 14. RELATED PARTY TRANSACTIONS | ||||||||||||
Significant related party transactions are described below. | |||||||||||||
FEI Company | |||||||||||||
One of the members of our Board of Directors, Mr. Raymond A. Link, is the Executive Vice President and Chief Financial Officer of FEI Company (“FEI”). | |||||||||||||
Information regarding our transactions with FEI is as follows (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Equipment and services purchased from FEI | $ | 36 | $ | 33 | $ | 37 | |||||||
Equipment sold to FEI | 5 | — | — | ||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Due to FEI | $ | 10 | $ | 8 | |||||||||
Due from FEI | — | — | |||||||||||
Raytheon, Inc. | |||||||||||||
One of the members of our Board of Directors, Dr. William R. Spivey, is a member of the Board of Directors of Raytheon, Inc. (“Raytheon”). | |||||||||||||
Information regarding our transactions with Raytheon is as follows (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Equipment sold to Raytheon | $ | 176 | $ | 607 | $ | 267 | |||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Due from Raytheon | $ | 21 | $ | 10 | |||||||||
Lam Research Corporation | |||||||||||||
One of the members of our Board of Directors, Dr. William R. Spivey, is a member of the Board of Directors of Lam Research Corporation (“Lam”). Dr. Spivey formerly served on the Board of Novellus Systems Inc. (“Novellus”), which was acquired by Lam in June 2012. | |||||||||||||
Information regarding our transactions with Lam is as follows (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Equipment sold to Lam | $ | 388 | $ | — | $ | 21 | |||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Due from Lam | $ | 3 | $ | — | |||||||||
Employee_Benefit_Plan
Employee Benefit Plan | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Postemployment Benefits [Abstract] | |||||||||||||
Employee Benefit Plan | NOTE 15. EMPLOYEE BENEFIT PLAN | ||||||||||||
We sponsor a 401(k) savings plan that allows eligible employees to contribute a certain percentage of their salary. We match 50% of each eligible employees’ contributions, up to a maximum of 3% of the employees’ earnings. Our matching contributions for the savings plan were as follows (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
401(k) matching contributions | $ | 534 | $ | 412 | $ | 362 | |||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||
Commitments and Contingencies | NOTE 16. COMMITMENTS AND CONTINGENCIES | ||||||||||||
Leases and Subleases | |||||||||||||
We lease automobiles, office space and manufacturing space under operating leases that expire at various dates through 2020. In addition to lease expense, we pay real property taxes, insurance and repair and maintenance expenses for our corporate office and manufacturing facilities. We recognize rent expense related to our operating leases based on a straight-line basis over the life of the lease, including any periods of free rent. | |||||||||||||
Future minimum lease payments under non-cancelable operating leases with initial or remaining terms in excess of one year are as follows (in thousands): | |||||||||||||
Year Ending December 31, | |||||||||||||
2015 | $ | 3,605 | |||||||||||
2016 | 2,088 | ||||||||||||
2017 | 2,085 | ||||||||||||
2018 | 1,418 | ||||||||||||
2019 | 1,450 | ||||||||||||
Thereafter | 597 | ||||||||||||
Total minimum lease payments | $ | 11,243 | |||||||||||
Lease expense was as follows (in thousands). | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Lease expense | $ | 2,630 | $ | 2,656 | $ | 2,575 | |||||||
Legal Proceedings | |||||||||||||
We are involved in various claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of existing matters will not have a material adverse effect on our financial position, results of operations or liquidity. | |||||||||||||
Restructuring
Restructuring | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||
Restructuring | NOTE 17. RESTRUCTURING | ||||||||||||||||||||
Restructuring charges in 2014 related to the consolidation of certain manufacturing, research and development operations at our corporate headquarters in Beaverton, Oregon, as well as the reorganization of business operations and the sales channel in Europe. As of December 31, 2014, these restructuring and consolidation activities were substantially complete, | |||||||||||||||||||||
Restructuring charges in 2013 were related to the integration and consolidation of manufacturing operations in 2011 which resulted in lease abandonment charges. | |||||||||||||||||||||
Summary | |||||||||||||||||||||
Restructuring charges were as follows (in thousands): | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Termination and severance related | $ | 683 | $ | — | $ | — | |||||||||||||||
Lease abandonment and termination | 553 | 227 | — | ||||||||||||||||||
$ | 1,236 | $ | 227 | $ | — | ||||||||||||||||
Restructuring costs were included in our Consolidated Statements of Operations as follows (in thousands): | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Cost of sales | $ | 154 | $ | — | $ | — | |||||||||||||||
Selling, general and administrative | 1,082 | 227 | — | ||||||||||||||||||
$ | 1,236 | $ | 227 | $ | — | ||||||||||||||||
The following tables summarize the charges, expenditures and write-offs and adjustments related to our restructuring accruals (in thousands): | |||||||||||||||||||||
Year Ended December 31, 2014 | Beginning | Charged to | Expend- | Write-Offs | Ending | ||||||||||||||||
Accrued | Expense, | itures | and | Accrued | |||||||||||||||||
Liability | Net | Adjust- | Liability | ||||||||||||||||||
ments | |||||||||||||||||||||
Termination and severance related | $ | — | $ | 683 | $ | (375 | ) | $ | — | $ | 308 | ||||||||||
Lease abandonment | 2,129 | 553 | (1,031 | ) | — | 1,651 | |||||||||||||||
$ | 2,129 | $ | 1,236 | $ | (1,406 | ) | $ | — | $ | 1,959 | |||||||||||
Year Ended December 31, 2013 | Beginning | Charged to | Expend- | Write-Offs | Ending | ||||||||||||||||
Accrued | Expense, | itures | and | Accrued | |||||||||||||||||
Liability | Net | Adjust- | Liability | ||||||||||||||||||
ments | |||||||||||||||||||||
Lease abandonment | $ | 3,034 | $ | 227 | $ | (1,132 | ) | $ | — | $ | 2,129 | ||||||||||
Year Ended December 31, 2012 | Beginning | Charged to | Expend- | Write-Offs | Ending | ||||||||||||||||
Accrued | Expense, | itures | and | Accrued | |||||||||||||||||
Liability | Net | Adjust- | Liability | ||||||||||||||||||
ments | |||||||||||||||||||||
Termination and severance related | $ | 10 | $ | — | $ | (10 | ) | $ | — | $ | — | ||||||||||
Lease abandonment | 4,137 | — | (1,103 | ) | — | 3,034 | |||||||||||||||
$ | 4,147 | $ | — | $ | (1,113 | ) | $ | — | $ | 3,034 | |||||||||||
We expect all accrued restructuring costs will be paid by the end of 2015. | |||||||||||||||||||||
Segment_Reporting_and_Enterpri
Segment Reporting and Enterprise-Wide Disclosures | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Segment Reporting and Enterprise-Wide Disclosures | NOTE 18. SEGMENT REPORTING AND ENTERPRISE-WIDE DISCLOSURES | ||||||||||||||||
The segment data below is presented in the same manner that management currently organizes the segments for assessing certain performance trends. Our Chief Operating Decision Maker monitors the revenue streams and the operating income of our Systems segment and our Probes segment. We do not track our assets on a segment level, and, accordingly, that information is not provided. | |||||||||||||||||
Revenue and operating income information by segment was as follows (dollars in thousands): | |||||||||||||||||
Year Ended December 31, 2014 | Systems | Probes | Corporate | Total | |||||||||||||
Unallocated | |||||||||||||||||
Revenue | $ | 82,850 | $ | 53,172 | $ | — | $ | 136,022 | |||||||||
Gross profit | $ | 37,775 | $ | 32,539 | $ | — | $ | 70,314 | |||||||||
Gross margin | 45.6 | % | 61.2 | % | — | 51.7 | % | ||||||||||
Income (loss) from operations | $ | 7,553 | $ | 20,768 | $ | (15,037 | ) | $ | 13,284 | ||||||||
Year Ended December 31, 2013 | |||||||||||||||||
Revenue | $ | 79,229 | $ | 40,781 | $ | — | $ | 120,010 | |||||||||
Gross profit | $ | 33,177 | $ | 21,547 | $ | — | $ | 54,724 | |||||||||
Gross margin | 41.9 | % | 52.8 | % | — | 45.6 | % | ||||||||||
Income (loss) from operations(1) | $ | 9,794 | $ | 11,568 | $ | (14,029 | ) | $ | 7,333 | ||||||||
Year Ended December 31, 2012 | |||||||||||||||||
Revenue | $ | 74,368 | $ | 38,595 | $ | — | $ | 112,963 | |||||||||
Gross profit | $ | 29,391 | $ | 20,560 | $ | — | $ | 49,951 | |||||||||
Gross margin | 39.5 | % | 53.3 | % | — | 44.2 | % | ||||||||||
Income (loss) from operations(1) | $ | 9,651 | $ | 10,158 | $ | (12,252 | ) | $ | 7,557 | ||||||||
-1 | Amortization expense of $1.2 million and $0.7 million for the years ended December 31, 2013 and 2012, respectively, was reclassified from Corporate Unallocated to Systems to conform with the current year presentation. | ||||||||||||||||
No customer accounted for 10% or more of our total revenue in 2014, 2013 or 2012. | |||||||||||||||||
Our revenues by geographic area were as follows (in thousands): | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
United States | $ | 39,855 | $ | 37,662 | $ | 33,445 | |||||||||||
Asia Pacific | 63,660 | 50,748 | 51,290 | ||||||||||||||
Europe | 30,076 | 28,334 | 25,718 | ||||||||||||||
Other | 2,431 | 3,266 | 2,510 | ||||||||||||||
$ | 136,022 | $ | 120,010 | $ | 112,963 | ||||||||||||
Long-lived assets, exclusive of deferred income taxes, by geographic area were as follows (in thousands): | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
United States | $ | 9,334 | $ | 8,660 | |||||||||||||
Asia Pacific | 304 | 339 | |||||||||||||||
Europe | 24,801 | 29,926 | |||||||||||||||
$ | 34,439 | $ | 38,925 | ||||||||||||||
Stock_Repurchase_Plans
Stock Repurchase Plans | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Equity [Abstract] | |||||||||||||||||
Stock Repurchase Plans | NOTE 19. STOCK REPURCHASE PLANS | ||||||||||||||||
In February 2012, our Board of Directors authorized a stock repurchase program under which up to $1.0 million of our common stock could be repurchased from time to time in the open market or in privately negotiated transactions during the period through June 30, 2012. As of June 30, 2012, a total of 214,087 shares had been repurchased at a weighted-average price of $4.67 per share, for a total purchase price of $1.0 million. The program was terminated by its terms on June 30, 2012. | |||||||||||||||||
In November 2012, our Board of Directors authorized a stock repurchase program under which up to $2.0 million of our common stock could be repurchased from time to time in the open market or in privately negotiated transactions. In May 2014, our Board of Directors authorized an increase to the stock repurchase program of an additional $2.0 million. Information regarding repurchases made pursuant to this program is as follows (dollars in thousands, except per share amounts): | |||||||||||||||||
Period | Number | Weighted | Total | Amount | |||||||||||||
of Shares | average | purchase | remaining | ||||||||||||||
per share | price | for | |||||||||||||||
purchase | repurchase | ||||||||||||||||
price | |||||||||||||||||
Fourth quarter of 2012 | 59,006 | $ | 5.6 | $ | 332 | $ | 1,668 | ||||||||||
First quarter of 2013 | 9,800 | 5.87 | 58 | 1,610 | |||||||||||||
First quarter of 2014 | 88,445 | 9.24 | 817 | 793 | |||||||||||||
Second quarter of 2014 | 22,811 | 9.45 | 216 | 2,577 | |||||||||||||
Fourth quarter of 2014 | 3,900 | 9.47 | 37 | 2,540 | |||||||||||||
183,962 | 7.94 | 1,460 | 2,540 | ||||||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Nature of Business | Nature of Business | ||||||||||||
We design, develop, manufacture and market advanced wafer probing, thermal and reliability solutions for the electrical measurement and testing of high performance semiconductor devices. Our products enable precision on-wafer measurement of integrated circuits and are typically used in the early phases of the development of semiconductor processes where the accuracy and repeatability of measurements is critical to achieving yield from advanced process nodes. They are also used in production applications to test semiconductor devices prior to completion of the manufacturing process. We design, manufacture and assemble our products in Beaverton, Oregon, North St. Paul, Minnesota, Munich, Germany, and Dresden, Germany and maintain global sales, service and support centers in North America, Germany, Japan, Taiwan, China and Singapore. | |||||||||||||
Principles of Consolidation | Principles of Consolidation | ||||||||||||
The consolidated financial statements include the accounts of Cascade Microtech, Inc. and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. | |||||||||||||
Use of Estimates in Financial Reporting | Use of Estimates in Financial Reporting | ||||||||||||
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as revenues and expenses reported for the periods presented. On an on-going basis, we evaluate our estimates, including those related to revenue recognition, allowance for doubtful accounts, valuation of excess and obsolete inventory, lives and recoverability of equipment and other long-lived assets, goodwill impairment, warranty liabilities, deferred tax asset valuation allowance, unrecognized tax benefits, stock-based compensation, lease abandonment costs, contingencies and litigation. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. | |||||||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents | ||||||||||||
We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. Our cash balances with financial institutions may exceed the deposit insurance limits. Included in cash and cash equivalents were cash equivalents of $6.6 million and $4.0 million at December 31, 2014 and 2013, respectively, which consisted primarily of money market funds, and are stated at cost, which approximates market value. | |||||||||||||
Marketable Securities | Marketable Securities | ||||||||||||
We classify our marketable securities as available-for-sale and, accordingly, record them at fair value. Unrealized holding gains and losses are excluded from earnings and are reported as a separate component of Shareholders’ equity until realized. Dividend and interest income is recognized when earned. Realized gains and losses are included in earnings and are derived using the specific identification method for determining the cost of securities sold. | |||||||||||||
We periodically evaluate whether declines in fair values of our investments below their cost are “other-than-temporary.” This evaluation consists of qualitative and quantitative factors regarding the severity and duration of the unrealized loss, as well as our ability and intent to hold the investment until a forecasted recovery occurs. | |||||||||||||
Restricted Cash | Restricted Cash | ||||||||||||
Our restricted cash is held in accounts with banks that have issued guarantees to our customers for advance deposits on goods and services. The guarantees allow the banks to withdraw the restricted cash from our accounts and return the advanced deposit to the customer if goods are not delivered or services are not properly performed. All of the guarantees expire within 12 months of the balance sheet date and, accordingly, are recorded as a current asset in our Consolidated Balance Sheets. | |||||||||||||
Trade Accounts Receivable | Trade Accounts Receivable | ||||||||||||
Trade accounts receivable are recorded at their invoiced amount and do not bear interest. The allowance for doubtful accounts is our best estimate of the amount of probable credit losses in our existing accounts receivable. We determine our allowance for doubtful accounts utilizing historical collection percentages considering the aging of the accounts and known trends with current customers, including recent significant changes in their financial position. | |||||||||||||
Activity related to our allowance for doubtful accounts was as follows (in thousands): | |||||||||||||
Balance, December 31, 2011 | $ | 266 | |||||||||||
Charges to costs and expenses | 133 | ||||||||||||
Write-offs | (155 | ) | |||||||||||
Recoveries | 101 | ||||||||||||
Balance, December 31, 2012 | 345 | ||||||||||||
Charges to costs and expenses | 20 | ||||||||||||
Write-offs | (96 | ) | |||||||||||
Recoveries | — | ||||||||||||
Balance, December 31, 2013 | 269 | ||||||||||||
Charges to costs and expenses | (50 | ) | |||||||||||
Write-offs | (14 | ) | |||||||||||
Recoveries | 3 | ||||||||||||
Balance, December 31, 2014 | $ | 208 | |||||||||||
Inventories | Inventories | ||||||||||||
Inventories are stated at the lower of standard cost, which approximates cost computed on a first-in, first-out basis, or market, and include materials, labor and manufacturing overhead. Demonstration goods, which are included as a component of finished goods, represent inventory that is used for customer demonstration purposes. This inventory is typically sold after 12 to 18 months. We analyze the carrying value of our inventory quarterly, considering a combination of factors including, but not limited to, the following: forecasted sales or usage, historical usage rates, estimated service period, product end-of-life dates, estimated current and future market values, service inventory requirements and new product introductions. We estimate market value based on factors including, but not limited to, replacement cost and estimated resale value with declines in value below cost being recorded quarterly as a component of cost of sales, therefore establishing a new cost basis for the inventory. | |||||||||||||
Inventory charges were as follows (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Inventory charges | $ | 1,816 | $ | 1,559 | $ | 1,381 | |||||||
Fixed Assets | Fixed Assets | ||||||||||||
Equipment and leasehold improvements are stated at cost. Equipment under capital lease is recorded at the net present value of the future minimum lease payments at the inception of the lease. Maintenance and repairs are expensed as incurred. We do not accrue for the future cost of periodic major overhauls and planned maintenance of plant and equipment in annual or interim periods. Depreciation of owned equipment is provided using the straight-line method over the estimated useful lives of the assets, ranging from two to seven years. Amortization of equipment under capital leases and leasehold improvements is provided using the straight-line method over the life of the lease or the useful life of the asset, whichever is shorter. Fixed assets are reviewed for impairment as discussed below under “Accounting for the Impairment of Long-Lived Assets.” We did not capitalize any interest during 2014, 2013 or 2012. | |||||||||||||
Goodwill | Goodwill | ||||||||||||
Goodwill represents the excess of the aggregate purchase price over the fair value of the net assets acquired | |||||||||||||
in a purchase business combination. Goodwill is not amortized but rather is reviewed for impairment at least annually, or more frequently if a triggering event occurs. We first make a qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount before applying the two-step goodwill impairment test. If the conclusion is that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we then perform a two-step goodwill impairment test. Under the first step, the fair value of the reporting unit is compared to its carrying value, and, if an indication of goodwill impairment exists in the reporting unit, the enterprise must perform step two of the impairment test (measurement). Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill as determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation. The residual fair value after this allocation is the implied fair value of the reporting unit goodwill. If the fair value of the reporting unit exceeds its carrying value, step two does not need to be performed. | |||||||||||||
Goodwill at December 31, 2014 relates to the following: | |||||||||||||
• | our January 2010 acquisition of SUSS MicroTec Test Systems GmbH (“SUSS Test”); | ||||||||||||
• | our July 2013 acquisition of the Reliability Test Product (“RTP”) division of Aetrium Incorporated; and | ||||||||||||
• | our October 2013 acquisition of ATT Advanced Temperature Test Systems GmbH (“ATT Systems”). | ||||||||||||
This goodwill relates to our Systems segment and represents the value of assembled workforce and other intangible assets that do not qualify for separate recognition. Our assessments performed in the fourth quarters of 2014, 2013 and 2012 did not indicate any impairment of goodwill. | |||||||||||||
Purchased Intangible Assets | Purchased Intangible Assets | ||||||||||||
Purchased intangible assets include various intangible assets acquired through business acquisitions. These assets are amortized using the straight-line method over their estimated useful lives of one to twelve years. Purchased intangible assets are reviewed for impairment as discussed below under “Accounting for the Impairment of Long-Lived Assets.” | |||||||||||||
Other Assets | Other Assets | ||||||||||||
Other long-term assets at December 31, 2014 and 2013 included $0.1 million and $0.3 million, respectively, of internally developed patents, net. These assets are amortized using the straight-line method over estimated useful lives of one to eight years and have no significant residual value. Patent amortization is included as a component of Selling, general and administrative expense. Patents are reviewed for impairment as discussed below under “Accounting for the Impairment of Long-Lived Assets.” | |||||||||||||
Accounting for the Impairment of Long-Lived Assets | Accounting for the Impairment of Long-Lived Assets | ||||||||||||
Long-lived assets held and used by us, including fixed assets, patents and intangible assets with determinable lives, are reviewed for impairment whenever events or circumstances indicate that the carrying amount of assets may not be recoverable. We evaluate recoverability of assets to be held and used by comparing the carrying amount of an asset to future net undiscounted cash flows to be generated by the asset. If such assets are considered not to be recoverable, an impairment charge is recognized for the amount by which the carrying value of the assets exceeds the fair value of the assets. Such reviews assess the fair value of the assets based upon estimates of discounted future cash flows that the assets are expected to generate. | |||||||||||||
We did not record any impairment charges related to long-lived assets during 2014, 2013 or 2012. | |||||||||||||
Revenue Recognition | Revenue Recognition | ||||||||||||
Revenue from product sales to customers and distributors that do not have special acceptance criteria is recognized when a written purchase order has been obtained, the price is fixed and determinable, the product is shipped, title has transferred and collectability is reasonably assured. Generally, we ship our products with origin terms. For any shipments with destination terms, we defer revenue until delivery to the customer. Revenue from customers who have special acceptance criteria beyond our standard terms and conditions is not recognized until all acceptance criteria are satisfied. Revenue for installation services, consisting of assembly and testing, is recognized when the services are performed. | |||||||||||||
We sell our products to end-users through a combination of manufacturers’ representatives, distributors and direct sales people: | |||||||||||||
• | manufacturers’ representatives are independent companies that agree to sell our products at our prices and on our terms and they are paid a commission based on a percentage of their sales of our products; | ||||||||||||
• | distributors purchase our products directly from us and pay us directly according to our standard terms and conditions; they then resell the products to end users at prices and terms set by them; and | ||||||||||||
• | the direct sales force consists of our salaried and commissioned employees. | ||||||||||||
Our transactions may involve the sale of systems and services under multiple element arrangements. Revenue under multiple element arrangements is allocated based on the fair value of each element. A typical multiple element arrangement may include some or all of the following components: products, accessories, installation services and extended warranty contracts. The total sales price is allocated based on the relative fair value of each component. We record deferred revenue for service contracts and customer deposits. Deferred revenue related to service contracts and extended warranties is recognized over the life of the contract based on the stated contractual price, typically one to two years. | |||||||||||||
Taxes Collected from Customers and Remitted to Governmental Authorities | Taxes Collected from Customers and Remitted to Governmental Authorities | ||||||||||||
We account for tax assessed by a governmental authority that is directly imposed on a revenue-producing transaction (i.e., sales, use, value added) on a net (excluded from revenue) basis. | |||||||||||||
Shipping and Handling Costs | Shipping and Handling Costs | ||||||||||||
Shipping and handling costs are included as a component of Cost of sales. | |||||||||||||
Significant Customers | Significant Customers | ||||||||||||
No customer in 2014, 2013 or 2012 accounted for 10% or more of our total revenues. At December 31, 2014 and 2013, no customers represented 10% or more of our gross accounts receivable balance. | |||||||||||||
Product Warranty | Product Warranty | ||||||||||||
We estimate a liability for costs to repair or replace products under warranty for periods ranging from 90 days to one year when the related product revenue is recognized. The liability for product warranties is calculated as a percentage of sales. The percentage is based on historical product repair costs. The liability for product warranties is included in Accrued liabilities. Product warranty activity was as follows (in thousands): | |||||||||||||
Warranty accrual, December 31, 2011 | $ | 729 | |||||||||||
Reductions for warranty charges | (888 | ) | |||||||||||
Additions to warranty reserve | 875 | ||||||||||||
Warranty accrual, December 31, 2012 | 716 | ||||||||||||
Reductions for warranty charges | (798 | ) | |||||||||||
Additions to warranty reserve | 827 | ||||||||||||
Warranty accrual, December 31, 2013 | 745 | ||||||||||||
Reductions for warranty charges | (812 | ) | |||||||||||
Additions to warranty reserve | 864 | ||||||||||||
Warranty accrual, December 31, 2014 | $ | 797 | |||||||||||
Additions to the warranty reserve in 2013 include accrued warranty costs of $0.2 million assumed with the acquisitions in 2013 as discussed in Note 3. | |||||||||||||
Advertising | Advertising | ||||||||||||
Advertising costs, which are included as a component of Selling, general and administrative expense, are expensed as incurred and have been insignificant. | |||||||||||||
Research and Development | Research and Development | ||||||||||||
Research and development costs are expensed as incurred. | |||||||||||||
Legal Costs | Legal Costs | ||||||||||||
We may be a party to legal proceedings arising in the normal course of business. We accrue for certain legal costs, including attorney fees, and potential settlement claims related to various legal proceedings that are estimable and probable. If not estimable and probable, legal costs are expensed as incurred. Legal costs related to patents are included in Research and development expense. All other legal costs are included in Selling, general and administrative expense. | |||||||||||||
Forward Exchange Contracts | Forward Exchange Contracts | ||||||||||||
We enter into forward foreign currency exchange contracts, which typically expire within six months, to manage our exposure against foreign currency fluctuations in either the euro or Japanese yen. These foreign exchange contracts are not considered hedges and, as such, are recorded at fair value on the balance sheet with any changes in fair value included as Other income (expense), net in our Consolidated Statements of Operations. At December 31, 2014 and 2013, we had $25.3 million and $27.1 million, respectively, of forward exchange contracts outstanding. The unrealized gain (loss) on contracts outstanding was as follows (in thousands): | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Unrealized gain (loss) | $ | 1,020 | $ | (437 | ) | ||||||||
Income Taxes | Income Taxes | ||||||||||||
Deferred income taxes are established for the difference between the financial reporting and income tax basis of assets and liabilities as well as operating loss and tax credit carryforwards. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that all or some portion of the deferred tax assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. | |||||||||||||
We recognize the benefits of tax return positions if we determine that the positions are “more-likely-than-not” to be sustained by the taxing authority. Interest and penalties accrued on unrecognized tax benefits are recorded as tax expense in the period incurred. We are subject to income taxes within the U.S. and foreign jurisdictions, and, in the ordinary course of business, there are transactions and calculations where the ultimate tax determination is uncertain. We report a liability (or contra asset) for unrecognized tax benefits resulting from uncertain tax positions taken, or expected to be taken, in a tax return. | |||||||||||||
Net Income Per Share | Net Income Per Share | ||||||||||||
Basic net income per share is computed by dividing the net income attributed to common shareholders for the period by the weighted average number of shares of common stock outstanding during the period. Diluted net income per share incorporates the incremental shares issuable upon the assumed exercise of stock options and vesting of restricted stock units using the treasury stock method, if dilutive. | |||||||||||||
The following table reconciles the shares used in calculating basic net income per share and diluted net income per share (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Shares used to calculate basic net income per share | 16,323 | 14,792 | 14,182 | ||||||||||
Dilutive effect of outstanding options and restricted stock units (“RSUs”) | 505 | 358 | 208 | ||||||||||
Shares used to calculate diluted net income per share | 16,828 | 15,150 | 14,390 | ||||||||||
Securities not considered as they would have been antidilutive | 793 | 1,094 | 1,271 | ||||||||||
Stock-Based Compensation | Stock-Based Compensation | ||||||||||||
We calculate stock-based compensation expense utilizing fair value-based methodologies and recognize the expense on a straight-line basis over the vesting period of such awards. The fair value of stock option awards is based on the Black-Scholes option pricing model, and the fair value of restricted stock units and stock awards is based on the fair value of our common stock on the date of grant. Compensation expense recorded for awards that do not vest is reversed in the period that it is determined that the award will not vest. | |||||||||||||
Certain Risks and Uncertainties | Certain Risks and Uncertainties | ||||||||||||
Our future operating results and financial condition are subject to influences driven by rapid technological changes, a highly competitive industry, a lengthy sales cycle, and the cyclical nature of general economic conditions. Future operating results will depend on many factors, including demand for our products, the introduction and industry acceptance of new products and the level and timing of available shippable orders and backlog. | |||||||||||||
In addition, we rely on several suppliers to provide certain key components used in our products. Some of these items are available from only one supplier or a limited group of suppliers. Any disruption in the availability and delivery of these items could adversely affect our revenues and results of operations. | |||||||||||||
Segment Reporting | Segment Reporting | ||||||||||||
We operate in two business segments: Systems and Probes. Sales of our probe stations, reliability test systems and thermal subsystems are included in the Systems segment. Sales of our analytical probes and production probe cards are included in the Probes segment. | |||||||||||||
Foreign Currency Translation | Foreign Currency Translation | ||||||||||||
The local currency is the functional currency for each of our foreign subsidiaries. Assets and liabilities are translated into U.S. dollars at current exchange rates, and sales and expenses are translated using average rates. Gains and losses from translation of assets and liabilities are included in Accumulated other comprehensive income (loss) in our Consolidated Balance Sheets. | |||||||||||||
Fair value measurements, policy | Various inputs are used in determining the fair value of our financial assets and liabilities and are summarized into three broad categories: | ||||||||||||
• | Level 1 – quoted prices in active markets for identical securities; | ||||||||||||
• | Level 2 – other significant observable inputs, including quoted prices for similar securities, interest rates, credit risk, etc.; and | ||||||||||||
• | Level 3 – significant unobservable inputs, including our own assumptions in determining fair value. | ||||||||||||
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. | |||||||||||||
Fair value of marketable securities, policy | The fair value of our marketable securities is determined based on quoted market prices for similar or identical securities. The fair value of our forward contracts is based on quoted market prices for similar securities and is used for the purpose of determining any gain or loss on our foreign currency positions. We do not record the full value of the forward contracts in our Condensed Consolidated Balance Sheets. We record the net unrealized gain or loss in our Consolidated Statements of Operations and as a component of Other income (expense). | ||||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Schedule of Allowance for Doubtful Accounts | Activity related to our allowance for doubtful accounts was as follows (in thousands): | ||||||||||||
Balance, December 31, 2011 | $ | 266 | |||||||||||
Charges to costs and expenses | 133 | ||||||||||||
Write-offs | (155 | ) | |||||||||||
Recoveries | 101 | ||||||||||||
Balance, December 31, 2012 | 345 | ||||||||||||
Charges to costs and expenses | 20 | ||||||||||||
Write-offs | (96 | ) | |||||||||||
Recoveries | — | ||||||||||||
Balance, December 31, 2013 | 269 | ||||||||||||
Charges to costs and expenses | (50 | ) | |||||||||||
Write-offs | (14 | ) | |||||||||||
Recoveries | 3 | ||||||||||||
Balance, December 31, 2014 | $ | 208 | |||||||||||
Inventory Charges | Inventory charges were as follows (in thousands): | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Inventory charges | $ | 1,816 | $ | 1,559 | $ | 1,381 | |||||||
Product Warranty Activity | Product warranty activity was as follows (in thousands): | ||||||||||||
Warranty accrual, December 31, 2011 | $ | 729 | |||||||||||
Reductions for warranty charges | (888 | ) | |||||||||||
Additions to warranty reserve | 875 | ||||||||||||
Warranty accrual, December 31, 2012 | 716 | ||||||||||||
Reductions for warranty charges | (798 | ) | |||||||||||
Additions to warranty reserve | 827 | ||||||||||||
Warranty accrual, December 31, 2013 | 745 | ||||||||||||
Reductions for warranty charges | (812 | ) | |||||||||||
Additions to warranty reserve | 864 | ||||||||||||
Warranty accrual, December 31, 2014 | $ | 797 | |||||||||||
Unrealized Gain (Loss) on Contracts | The unrealized gain (loss) on contracts outstanding was as follows (in thousands): | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Unrealized gain (loss) | $ | 1,020 | $ | (437 | ) | ||||||||
Basic and Diluted Net Income Per Share | The following table reconciles the shares used in calculating basic net income per share and diluted net income per share (in thousands): | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Shares used to calculate basic net income per share | 16,323 | 14,792 | 14,182 | ||||||||||
Dilutive effect of outstanding options and restricted stock units (“RSUs”) | 505 | 358 | 208 | ||||||||||
Shares used to calculate diluted net income per share | 16,828 | 15,150 | 14,390 | ||||||||||
Securities not considered as they would have been antidilutive | 793 | 1,094 | 1,271 | ||||||||||
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Acquisition of ATT Systems | |||||||||
Schedule of Purchase Price Allocation | The allocation of the purchase price for the ATT Acquisition was as follows (dollars in thousands): | ||||||||
Assets: | Useful Life | ||||||||
Cash | $ | 559 | — | ||||||
Accounts receivable | 408 | — | |||||||
Inventory | 2,585 | — | |||||||
Prepaid expenses and other | 1,393 | — | |||||||
Fixed assets | 137 | 3 years | |||||||
Goodwill | 12,551 | — | |||||||
Other intangible assets: | |||||||||
Core technology | 10,266 | 6 years | |||||||
Customer relationships | 3,377 | 8 years | |||||||
Trademarks and tradenames | 1,216 | 10 years | |||||||
14,859 | |||||||||
32,492 | |||||||||
Liabilities: | |||||||||
Accounts payable | 518 | — | |||||||
Accrued liabilities | 252 | — | |||||||
Long-term deferred tax liability | 4,061 | 6-10 years | |||||||
4,831 | |||||||||
Net assets acquired | $ | 27,661 | |||||||
Schedule of Operating Results of ATT and RTPs Systems | ATT System’s results of operations have been included in our consolidated financial statements and Systems segment subsequent to the date of acquisition as follows (in thousands): | ||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Revenue | $ | 12,936 | $ | 3,778 | |||||
Operating income | 2,749 | 448 | |||||||
Schedule of Pro Forma Results of Operations | The unaudited pro forma results of operations, as if the ATT Acquisition had occurred on January 1, 2012 were as follows (in thousands): | ||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | ||||||||
Pro forma revenue | $ | 127,618 | $ | 118,508 | |||||
Pro forma net income | 14,564 | 5,834 | |||||||
Pro forma basic net income per share | 0.9 | 0.37 | |||||||
Pro forma diluted net income per share | 0.88 | 0.36 | |||||||
Acquisition of RTP | |||||||||
Schedule of Purchase Price Allocation | The allocation of the purchase price for the RTP Acquisition was as follows (dollars in thousands): | ||||||||
Useful Life | |||||||||
Current assets | $ | 1,198 | — | ||||||
Fixed assets | 17 | 2 years | |||||||
Goodwill | 641 | — | |||||||
Other intangible assets: | |||||||||
Core technology | 930 | 5 years | |||||||
Customer relationships | 490 | 12 years | |||||||
1,420 | |||||||||
Current liabilities | (62 | ) | — | ||||||
Net assets acquired | $ | 3,214 | |||||||
Schedule of Operating Results of ATT and RTPs Systems | RTP’s results of operations have been included in our consolidated financial statements and Systems segment subsequent to the date of acquisition as follows (in thousands): | ||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Revenue | $ | 2,954 | $ | 1,222 | |||||
Operating loss | 595 | 40 |
Marketable_Securities_Tables
Marketable Securities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||
Information Regarding Marketable Securities | Certain information regarding our marketable securities was as follows (in thousands): | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Fair value: | |||||||||
Corporate obligations | $ | 1,620 | $ | 4,277 | |||||
Corporate equities | 6 | 1 | |||||||
$ | 1,626 | $ | 4,278 | ||||||
Cost: | |||||||||
Corporate obligations | $ | 1,620 | $ | 4,276 | |||||
Corporate equities | 6 | 1 | |||||||
$ | 1,626 | $ | 4,277 | ||||||
Fair value by maturity: | |||||||||
Within one year | $ | 1,620 | $ | 4,277 | |||||
One to two years | — | — | |||||||
Corporate equities | 6 | 1 | |||||||
$ | 1,626 | $ | 4,278 | ||||||
Gross unrealized holding gains: | |||||||||
Corporate obligations | $ | — | $ | 1 | |||||
U.S. treasury and agency securities | — | — | |||||||
$ | — | $ | 1 | ||||||
Gross unrealized holding losses: | |||||||||
Corporate obligations | $ | — | $ | — | |||||
U.S. treasury and agency securities | — | — | |||||||
$ | — | $ | — | ||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value of Financial Assets and (Liabilities) Measured on Recurring Basis | The disclosures related to our financial assets and (liabilities) that are reported at fair value on a recurring basis are as follows (in thousands): | ||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||
Fair Value | Input Level | Fair Value | Input Level | ||||||||||||||
Marketable securities – corporate equities | $ | 6 | Level 1 | $ | 1 | Level 1 | |||||||||||
Marketable securities – corporate obligations | $ | 1,620 | Level 2 | $ | 4,277 | Level 2 | |||||||||||
Forward sale contracts for Japanese yen | $ | 2,510 | Level 2 | $ | 523 | Level 2 | |||||||||||
Forward purchase contract for euro | $ | 726 | Level 2 | $ | 2,061 | Level 2 | |||||||||||
Forward sale contract for euro | $ | 22,056 | Level 2 | $ | 24,561 | Level 2 | |||||||||||
Contingent consideration related to the RTP Acquisition | $ | — | Level 3 | $ | (1,350 | ) | Level 3 | ||||||||||
Summary of Level 3 Activity for Contingent Consideration Liability | The following table summarizes our Level 3 activity for our contingent consideration liability (in thousands): | ||||||||||||||||
Level 3 | |||||||||||||||||
Balance at December 31, 2013 | $ | 1,350 | |||||||||||||||
Decrease in contingent consideration due to re-measurement | (522 | ) | |||||||||||||||
Payment of contingent consideration | (828 | ) | |||||||||||||||
Balance at December 31, 2014 | $ | — | |||||||||||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories | Inventories consisted of the following (in thousands): | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 14,120 | $ | 15,234 | |||||
Work-in-process | 3,809 | 2,958 | |||||||
Finished goods | 6,713 | 6,692 | |||||||
$ | 24,642 | $ | 24,884 | ||||||
Fixed_Assets_Tables
Fixed Assets (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||
Fixed Assets and Depreciation Expense | Fixed assets consisted of the following (in thousands): | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Equipment | $ | 25,749 | $ | 25,673 | |||||||||
Leasehold improvements | 9,220 | 8,253 | |||||||||||
Construction in progress | 1,538 | 207 | |||||||||||
36,507 | 34,133 | ||||||||||||
Less accumulated depreciation | (28,407 | ) | (27,730 | ) | |||||||||
$ | 8,100 | $ | 6,403 | ||||||||||
Depreciation expense was as follows (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Depreciation expense | $ | 3,335 | $ | 3,661 | $ | 3,547 | |||||||
Goodwill_and_Purchased_Intangi1
Goodwill and Purchased Intangible Assets (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||
Change in Goodwill | The change in goodwill was as follows (in thousands): | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance, beginning of period | $ | 14,471 | $ | 990 | $ | 971 | |||||||
Acquisition of RTP | — | 641 | — | ||||||||||
Acquisition of ATT Systems | — | 12,551 | — | ||||||||||
Effect of exchange rate changes | (1,648 | ) | 289 | 19 | |||||||||
Balance, end of period | $ | 12,823 | $ | 14,471 | $ | 990 | |||||||
Intangible Assets, Net | Intangible assets, net included the following (in thousands): | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Purchased Intangible Assets | |||||||||||||
Customer relationships | $ | 4,323 | $ | 7,198 | |||||||||
Core technology | 12,481 | 13,728 | |||||||||||
Trademarks and tradenames | 1,092 | 1,239 | |||||||||||
17,896 | 22,165 | ||||||||||||
Less accumulated amortization | (5,324 | ) | (5,228 | ) | |||||||||
$ | 12,572 | $ | 16,937 | ||||||||||
Patents | |||||||||||||
Patents | $ | 4,632 | $ | 4,632 | |||||||||
Less accumulated amortization | (4,540 | ) | (4,349 | ) | |||||||||
$ | 92 | $ | 283 | ||||||||||
Intangible Asset Amortization | Intangible asset amortization is a component of Selling, general and administrative expense and was as follows (in thousands): | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Intangible amortization | $ | 3,011 | $ | 1,522 | $ | 1,082 | |||||||
Estimated Amortization of Intangible Assets | The estimated amortization of intangible assets is as follows over the next five years and thereafter (in thousands): | ||||||||||||
2015 | $ | 2,632 | |||||||||||
2016 | 2,340 | ||||||||||||
2017 | 2,321 | ||||||||||||
2018 | 2,244 | ||||||||||||
2019 | 1,751 | ||||||||||||
Thereafter | 1,376 | ||||||||||||
$ | 12,664 | ||||||||||||
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Accrued Liabilities | Accrued liabilities consisted of the following (in thousands): | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Accrued compensation and benefits | $ | 3,606 | $ | 2,812 | |||||
Accrued sales taxes and VAT | 276 | 470 | |||||||
Accrued income taxes | 1,628 | 492 | |||||||
Accrued warranty | 797 | 745 | |||||||
Contingent consideration related to RTP acquisition | — | 1,350 | |||||||
Payable to seller related to ATT acquisition | 456 | 746 | |||||||
Accrued restructuring costs | 1,959 | 1,163 | |||||||
Other | 783 | 1,081 | |||||||
$ | 9,505 | $ | 8,859 | ||||||
Tax_Provision_Tables
Tax Provision (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Domestic and Foreign Pre-Tax Income from Continuing Operations | Domestic and foreign pre-tax income from continuing operations was as follows (in thousands): | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Domestic | $ | 8,076 | $ | 5,619 | $ | 4,933 | |||||||
Foreign | 4,588 | 1,462 | 1,875 | ||||||||||
$ | 12,664 | $ | 7,081 | $ | 6,808 | ||||||||
Income Tax Expense (Benefit) from Continuing Operations | The income tax expense (benefit) from continuing operations consisted of the following (in thousands): | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current: | |||||||||||||
Federal | $ | 1,086 | $ | (253 | ) | $ | 13 | ||||||
State | 184 | (39 | ) | 32 | |||||||||
Foreign | 1,862 | 1,039 | 752 | ||||||||||
Total current | 3,132 | 747 | 797 | ||||||||||
Deferred: | |||||||||||||
Federal | 133 | (5,912 | ) | — | |||||||||
State | 46 | (928 | ) | — | |||||||||
Foreign | (577 | ) | (244 | ) | (88 | ) | |||||||
Total deferred | (398 | ) | (7,084 | ) | (88 | ) | |||||||
Income tax (benefit) expense | $ | 2,734 | $ | (6,337 | ) | $ | 709 | ||||||
Reconciliation between Income Taxes Computed at Federal Statutory Rate and Provision (Benefit) for Income Taxes | The income tax (benefit) provision varies from the amounts computed by applying the Federal statutory rate of 34% to income from continuing operations before income taxes as follows (in thousands): | ||||||||||||
Year Ended December 31, | Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Federal income tax provision computed at statutory rates | $ | 4,269 | $ | 2,407 | $ | 2,281 | |||||||
Difference in foreign tax rate | (405 | ) | 174 | (141 | ) | ||||||||
State income taxes, net of federal benefit | 142 | 140 | 27 | ||||||||||
Stock-based compensation | 142 | 966 | 96 | ||||||||||
Research and development tax credits | (33 | ) | (256 | ) | 56 | ||||||||
Expiration of tax credits | 236 | 167 | 200 | ||||||||||
Foreign tax credits | (2,527 | ) | (47 | ) | (136 | ) | |||||||
Foreign dividend | 1,281 | — | — | ||||||||||
Change in valuation allowance | (158 | ) | (9,656 | ) | (1,877 | ) | |||||||
Unrecognized tax benefits | 8 | 9 | 9 | ||||||||||
Foreign earnings not permanently reinvested | — | (207 | ) | (58 | ) | ||||||||
Domestic production deduction | (251 | ) | — | — | |||||||||
Other | 30 | (34 | ) | 252 | |||||||||
Provision for (benefit from) income taxes | $ | 2,734 | $ | (6,337 | ) | $ | 709 | ||||||
Components of Deferred Income Tax Assets and Liabilities | Significant components of deferred income tax assets and liabilities were as follows (in thousands): | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Current deferred tax assets: | |||||||||||||
Reserves and allowances | $ | 273 | $ | 420 | |||||||||
Inventory | 1,037 | 1,019 | |||||||||||
Accrued vacation and bonus | 664 | 435 | |||||||||||
Unrealized loss on forward contracts | 856 | 132 | |||||||||||
Other current deferred tax assets | 197 | 262 | |||||||||||
Gross current deferred tax assets | 3,027 | 2,268 | |||||||||||
Valuation allowance | — | — | |||||||||||
Net current deferred tax assets | 3,027 | 2,268 | |||||||||||
Non-current deferred tax assets: | |||||||||||||
Reserves and allowances | 182 | 174 | |||||||||||
Federal and state net operating loss (“NOL”) carryforwards | 21 | 573 | |||||||||||
Federal and state tax credits | 1,781 | 2,640 | |||||||||||
Stock-based compensation | 565 | 506 | |||||||||||
Intangibles | 1,278 | 1,225 | |||||||||||
Other non-current deferred tax assets | 637 | 768 | |||||||||||
Gross non-current deferred tax assets | 4,464 | 5,886 | |||||||||||
Valuation allowance | — | (158 | ) | ||||||||||
Net non-current deferred tax assets | 4,464 | 5,728 | |||||||||||
Non-current deferred tax liabilities: | |||||||||||||
Foreign earnings | — | (536 | ) | ||||||||||
Intangibles | (2,936 | ) | (3,843 | ) | |||||||||
Other non-current deferred tax liabilities | (266 | ) | (114 | ) | |||||||||
Total non-current deferred tax liabilities | (3,202 | ) | (4,493 | ) | |||||||||
Non-current deferred tax assets, net | 1,262 | 1,235 | |||||||||||
Net total deferred tax assets | $ | 4,289 | $ | 3,503 | |||||||||
Valuation Allowance | The total valuation allowance was as follows (in thousands): | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Valuation allowance | $ | — | $ | 158 | |||||||||
Net Decrease in Total Valuation Allowance | The net decrease in the total valuation allowance was as follows (in thousands): | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Decrease in valuation allowance | $ | (158 | ) | $ | (9,656 | ) | $ | (1,877 | ) | ||||
Net Operating Loss and Tax Credit Carryforwards | We had tax NOL and credit carryforwards as of December 31, 2014 as follows: | ||||||||||||
Amount | Expiration | ||||||||||||
Date | |||||||||||||
Federal and state research and experimentation credit carryforwards | $ | 1.8 million | 2014-2034 | ||||||||||
State NOL carryforwards | 0.8 million | 2016-2031 | |||||||||||
Reconciliation of Unrecognized Tax Benefits | A reconciliation of unrecognized tax benefits was as follows (in thousands): | ||||||||||||
Balance, December 31, 2011 | $ | 141 | |||||||||||
Increases due to tax positions taken during the current year | — | ||||||||||||
Increases due to tax positions taken during a prior year | 9 | ||||||||||||
Balance, December 31, 2012 | 150 | ||||||||||||
Increases due to tax positions taken during the current year | 9 | ||||||||||||
Increases due to tax positions taken during a prior year | — | ||||||||||||
Balance, December 31, 2013 | 159 | ||||||||||||
Increases due to tax positions taken during the current year | — | ||||||||||||
Decreases due to tax positions taken during a prior year | (5 | ) | |||||||||||
Balance, December 31, 2014 | $ | 154 | |||||||||||
Open Tax Year | The tax years that remained open to examination in our major taxing jurisdictions as of December 31, 2014 were as follows: | ||||||||||||
Jurisdiction | Open Tax Years | ||||||||||||
U.S. | 2011-2014 | ||||||||||||
Japan | 2008-2014 | ||||||||||||
Germany | 2010-2014 | ||||||||||||
Other_Income_Expense_Net_Table
Other Income (Expense), Net (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||
Other Income (Expense), Net | Other income (expense), net consisted of the following (in thousands): | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Interest income, net | $ | 29 | $ | 44 | $ | 52 | |||||||
Foreign currency losses | (3,629 | ) | (311 | ) | (950 | ) | |||||||
Gains on foreign currency forward contracts | 3,016 | 90 | 166 | ||||||||||
Other | (36 | ) | (75 | ) | (17 | ) | |||||||
$ | (620 | ) | $ | (252 | ) | $ | (749 | ) | |||||
StockBased_Compensation_and_St1
Stock-Based Compensation and Stock-Based Plans (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Certain Information Regarding Stock-Based Compensation | Certain information regarding our stock-based compensation was as follows (in thousands, except per share amounts): | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Weighted average grant-date per share fair value of stock options granted | $ | 5.58 | $ | 5.35 | $ | 2.56 | |||||||
Total intrinsic value of stock options exercised | 377 | 523 | 4 | ||||||||||
Fair value of restricted shares vested | 2,309 | 1,398 | 1,236 | ||||||||||
Tax benefit realized from stock options exercised and restricted stock units (“RSUs”) released | 954 | 729 | 436 | ||||||||||
Tax benefit recognized in our Consolidated Statements of Operations related to stock-based compensation | 750 | 537 | 25 | ||||||||||
Stock-Based Compensation Included in Consolidated Statements of Operations | Our stock-based compensation was included in our Consolidated Statements of Operations as follows (in thousands): | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Cost of sales | $ | 234 | $ | 201 | $ | 165 | |||||||
Research and development | 321 | 198 | 242 | ||||||||||
Selling, general and administrative | 1,927 | 1,215 | 1,052 | ||||||||||
$ | 2,482 | $ | 1,614 | $ | 1,459 | ||||||||
Weighted-Average Assumptions Used to Determine Fair Value of Stock-Based Awards Granted | To determine the fair value of stock-based awards granted, we used the Black-Scholes option pricing model and the following weighted-average assumptions: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Stock Option Plan | |||||||||||||
Risk-free interest rate | 1.80% | 1.1% - 1.8% | 0.8% - 1.2% | ||||||||||
Expected dividend yield | 0.00% | 0.00% | 0.00% | ||||||||||
Expected term | 6.25 years | 6.25 years | 6.5 years | ||||||||||
Expected volatility | 61.20% | 60.6% - 61.0% | 58.2% - 59.4% | ||||||||||
Employee Stock Purchase Plan | |||||||||||||
Risk-free interest rate | 0.10% | 0.80% | 0.1% - 0.2% | ||||||||||
Expected dividend yield | 0.00% | 0.00% | 0.00% | ||||||||||
Expected term | 6 months | 6 months | 6 months | ||||||||||
Expected volatility | 35.4% - 37.8% | 24.5% - 31.5% | 40.1% - 54.3% | ||||||||||
Stock Option Activity | Stock option activity for the year ended December 31, 2014 and other Plan information was as follows: | ||||||||||||
Options | Weighted | ||||||||||||
Outstanding | Average | ||||||||||||
Exercise Price | |||||||||||||
Outstanding at December 31, 2013 | 1,042,937 | $ | 6.52 | ||||||||||
Granted | 90,000 | 9.61 | |||||||||||
Exercised | (148,166 | ) | 9.9 | ||||||||||
Forfeited | (67,992 | ) | 9.01 | ||||||||||
Outstanding at December 31, 2014 | 916,779 | 6.1 | |||||||||||
Certain Information Regarding Options Outstanding | Certain information regarding options outstanding as of December 31, 2014 was as follows: | ||||||||||||
Options | Options | ||||||||||||
Outstanding | Exercisable | ||||||||||||
Number | 916,779 | 555,689 | |||||||||||
Weighted-average exercise price | $ | 6.1 | $ | 5.48 | |||||||||
Aggregate intrinsic value | $ | 7,803,203 | $ | 5,071,011 | |||||||||
Weighted-average remaining contractual term (in years) | 6.38 | 5.36 | |||||||||||
Summary of Restricted Stock Units Activity | RSU activity for the year ended December 31, 2014 was as follows: | ||||||||||||
Restricted | Weighted | ||||||||||||
Stock | Average | ||||||||||||
Units | Grant Date | ||||||||||||
Per Share | |||||||||||||
Fair Value | |||||||||||||
Outstanding at December 31, 2013 | 409,403 | $ | 6.87 | ||||||||||
Granted | 226,400 | 10.47 | |||||||||||
Vested | (205,739 | ) | 7.04 | ||||||||||
Forfeited | (34,340 | ) | 6.98 | ||||||||||
Outstanding at December 31, 2014 | 395,724 | 8.83 | |||||||||||
Information Relates to Employee Stock Purchase Plan | The following information relates to our 2013 ESPP activity during 2014: | ||||||||||||
Shares issued pursuant to the 2013 ESPP | 70,533 | ||||||||||||
Weighted average price of shares issued | $ | 9 | |||||||||||
Discount per share from the fair market value on the dates of purchase | $ | 1.71 | |||||||||||
Shares remaining available for purchase pursuant to the 2013 ESPP as of December 31, 2014 | 929,467 | ||||||||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
FEI Company | |||||||||||||
Summary of Related Party Transactions | Information regarding our transactions with FEI is as follows (in thousands): | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Equipment and services purchased from FEI | $ | 36 | $ | 33 | $ | 37 | |||||||
Equipment sold to FEI | 5 | — | — | ||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Due to FEI | $ | 10 | $ | 8 | |||||||||
Due from FEI | — | — | |||||||||||
Raytheon, Inc. | |||||||||||||
Summary of Related Party Transactions | Information regarding our transactions with Raytheon is as follows (in thousands): | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Equipment sold to Raytheon | $ | 176 | $ | 607 | $ | 267 | |||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Due from Raytheon | $ | 21 | $ | 10 | |||||||||
Lam Research Corporation | |||||||||||||
Summary of Related Party Transactions | Information regarding our transactions with Lam is as follows (in thousands): | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Equipment sold to Lam | $ | 388 | $ | — | $ | 21 | |||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Due from Lam | $ | 3 | $ | — |
Employee_Benefit_Plan_Tables
Employee Benefit Plan (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Postemployment Benefits [Abstract] | |||||||||||||
Employer Matching Contributions for Savings Plan | Our matching contributions for the savings plan were as follows (in thousands): | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
401(k) matching contributions | $ | 534 | $ | 412 | $ | 362 | |||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||
Future Minimum Lease Payments under Non-Cancelable Operating Leases | Future minimum lease payments under non-cancelable operating leases with initial or remaining terms in excess of one year are as follows (in thousands): | ||||||||||||
Year Ending December 31, | |||||||||||||
2015 | $ | 3,605 | |||||||||||
2016 | 2,088 | ||||||||||||
2017 | 2,085 | ||||||||||||
2018 | 1,418 | ||||||||||||
2019 | 1,450 | ||||||||||||
Thereafter | 597 | ||||||||||||
Total minimum lease payments | $ | 11,243 | |||||||||||
Lease Expense | Lease expense was as follows (in thousands). | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Lease expense | $ | 2,630 | $ | 2,656 | $ | 2,575 |
Restructuring_Tables
Restructuring (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||
Restructuring Charges | Restructuring charges were as follows (in thousands): | ||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Termination and severance related | $ | 683 | $ | — | $ | — | |||||||||||||||
Lease abandonment and termination | 553 | 227 | — | ||||||||||||||||||
$ | 1,236 | $ | 227 | $ | — | ||||||||||||||||
Restructuring Costs of Consolidated Statements of Operations | Restructuring costs were included in our Consolidated Statements of Operations as follows (in thousands): | ||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Cost of sales | $ | 154 | $ | — | $ | — | |||||||||||||||
Selling, general and administrative | 1,082 | 227 | — | ||||||||||||||||||
$ | 1,236 | $ | 227 | $ | — | ||||||||||||||||
Charges, Expenditures, Write-Offs and Adjustments Related to Restructuring Accruals | The following tables summarize the charges, expenditures and write-offs and adjustments related to our restructuring accruals (in thousands): | ||||||||||||||||||||
Year Ended December 31, 2014 | Beginning | Charged to | Expend- | Write-Offs | Ending | ||||||||||||||||
Accrued | Expense, | itures | and | Accrued | |||||||||||||||||
Liability | Net | Adjust- | Liability | ||||||||||||||||||
ments | |||||||||||||||||||||
Termination and severance related | $ | — | $ | 683 | $ | (375 | ) | $ | — | $ | 308 | ||||||||||
Lease abandonment | 2,129 | 553 | (1,031 | ) | — | 1,651 | |||||||||||||||
$ | 2,129 | $ | 1,236 | $ | (1,406 | ) | $ | — | $ | 1,959 | |||||||||||
Year Ended December 31, 2013 | Beginning | Charged to | Expend- | Write-Offs | Ending | ||||||||||||||||
Accrued | Expense, | itures | and | Accrued | |||||||||||||||||
Liability | Net | Adjust- | Liability | ||||||||||||||||||
ments | |||||||||||||||||||||
Lease abandonment | $ | 3,034 | $ | 227 | $ | (1,132 | ) | $ | — | $ | 2,129 | ||||||||||
Year Ended December 31, 2012 | Beginning | Charged to | Expend- | Write-Offs | Ending | ||||||||||||||||
Accrued | Expense, | itures | and | Accrued | |||||||||||||||||
Liability | Net | Adjust- | Liability | ||||||||||||||||||
ments | |||||||||||||||||||||
Termination and severance related | $ | 10 | $ | — | $ | (10 | ) | $ | — | $ | — | ||||||||||
Lease abandonment | 4,137 | — | (1,103 | ) | — | 3,034 | |||||||||||||||
$ | 4,147 | $ | — | $ | (1,113 | ) | $ | — | $ | 3,034 | |||||||||||
Segment_Reporting_and_Enterpri1
Segment Reporting and Enterprise-Wide Disclosures (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Revenue and Operating Income Information by Segment | Revenue and operating income information by segment was as follows (dollars in thousands): | ||||||||||||||||
Year Ended December 31, 2014 | Systems | Probes | Corporate | Total | |||||||||||||
Unallocated | |||||||||||||||||
Revenue | $ | 82,850 | $ | 53,172 | $ | — | $ | 136,022 | |||||||||
Gross profit | $ | 37,775 | $ | 32,539 | $ | — | $ | 70,314 | |||||||||
Gross margin | 45.6 | % | 61.2 | % | — | 51.7 | % | ||||||||||
Income (loss) from operations | $ | 7,553 | $ | 20,768 | $ | (15,037 | ) | $ | 13,284 | ||||||||
Year Ended December 31, 2013 | |||||||||||||||||
Revenue | $ | 79,229 | $ | 40,781 | $ | — | $ | 120,010 | |||||||||
Gross profit | $ | 33,177 | $ | 21,547 | $ | — | $ | 54,724 | |||||||||
Gross margin | 41.9 | % | 52.8 | % | — | 45.6 | % | ||||||||||
Income (loss) from operations(1) | $ | 9,794 | $ | 11,568 | $ | (14,029 | ) | $ | 7,333 | ||||||||
Year Ended December 31, 2012 | |||||||||||||||||
Revenue | $ | 74,368 | $ | 38,595 | $ | — | $ | 112,963 | |||||||||
Gross profit | $ | 29,391 | $ | 20,560 | $ | — | $ | 49,951 | |||||||||
Gross margin | 39.5 | % | 53.3 | % | — | 44.2 | % | ||||||||||
Income (loss) from operations(1) | $ | 9,651 | $ | 10,158 | $ | (12,252 | ) | $ | 7,557 | ||||||||
-1 | Amortization expense of $1.2 million and $0.7 million for the years ended December 31, 2013 and 2012, respectively, was reclassified from Corporate Unallocated to Systems to conform with the current year presentation. | ||||||||||||||||
Revenues by Geographic Area | Our revenues by geographic area were as follows (in thousands): | ||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
United States | $ | 39,855 | $ | 37,662 | $ | 33,445 | |||||||||||
Asia Pacific | 63,660 | 50,748 | 51,290 | ||||||||||||||
Europe | 30,076 | 28,334 | 25,718 | ||||||||||||||
Other | 2,431 | 3,266 | 2,510 | ||||||||||||||
$ | 136,022 | $ | 120,010 | $ | 112,963 | ||||||||||||
Long-Lived Assets, Exclusive of Deferred Income Taxes, by Geographic Area | Long-lived assets, exclusive of deferred income taxes, by geographic area were as follows (in thousands): | ||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
United States | $ | 9,334 | $ | 8,660 | |||||||||||||
Asia Pacific | 304 | 339 | |||||||||||||||
Europe | 24,801 | 29,926 | |||||||||||||||
$ | 34,439 | $ | 38,925 | ||||||||||||||
Stock_Repurchase_Plans_Tables
Stock Repurchase Plans (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Equity [Abstract] | |||||||||||||||||
Summary of Information Regarding Repurchases of Common Stock | Information regarding repurchases made pursuant to this program is as follows (dollars in thousands, except per share amounts): | ||||||||||||||||
Period | Number | Weighted | Total | Amount | |||||||||||||
of Shares | average | purchase | remaining | ||||||||||||||
per share | price | for | |||||||||||||||
purchase | repurchase | ||||||||||||||||
price | |||||||||||||||||
Fourth quarter of 2012 | 59,006 | $ | 5.6 | $ | 332 | $ | 1,668 | ||||||||||
First quarter of 2013 | 9,800 | 5.87 | 58 | 1,610 | |||||||||||||
First quarter of 2014 | 88,445 | 9.24 | 817 | 793 | |||||||||||||
Second quarter of 2014 | 22,811 | 9.45 | 216 | 2,577 | |||||||||||||
Fourth quarter of 2014 | 3,900 | 9.47 | 37 | 2,540 | |||||||||||||
183,962 | 7.94 | 1,460 | 2,540 | ||||||||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Segment | |||
Significant Accounting Policies [Line Items] | |||
Cash equivalents | $6,600,000 | $4,000,000 | |
Property plant and equipment estimated useful life | 3 years | ||
Capitalized interest for long-lived assets | 0 | 0 | 0 |
Other assets, net | 944,000 | 1,114,000 | |
Impairment of long-lived assets | 0 | 0 | 0 |
Major customer description | No customer in 2014, 2013 or 2012 accounted for 10% or more of our total revenues. At December 31, 2014 and 2013, no customers represented 10% or more of our gross accounts receivable balance. | ||
Additions to warranty reserve | 864,000 | 827,000 | 875,000 |
Forward foreign currency exchange contracts, expiration period | 6 months | ||
Number of operating business segments | 2 | ||
Forward Exchange Contracts | |||
Significant Accounting Policies [Line Items] | |||
Forward exchange contracts outstanding | 25,300,000 | 27,100,000 | |
Customer Concentration Risk | Total Revenue | |||
Significant Accounting Policies [Line Items] | |||
Number of customers accounted for 10% or greater of our total revenue | 0 | 0 | 0 |
Customer Concentration Risk | Accounts Receivable | |||
Significant Accounting Policies [Line Items] | |||
Number of customers accounted for 10% or greater of our total revenue | 0 | 0 | |
Patents | |||
Significant Accounting Policies [Line Items] | |||
Other assets, net | 100,000 | 300,000 | |
Minimum | |||
Significant Accounting Policies [Line Items] | |||
Inventory sold period | 12 months | ||
Property plant and equipment estimated useful life | 2 years | ||
Estimated useful life of intangible assets | 1 year | ||
Deferred revenue for service contracts recognition period | 1 year | ||
Product warranty period | 90 days | ||
Minimum | Acquisition of ATT Systems | |||
Significant Accounting Policies [Line Items] | |||
Additions to warranty reserve | $200,000 | ||
Minimum | Customer Concentration Risk | Total Revenue | |||
Significant Accounting Policies [Line Items] | |||
Percentage of revenue for specified number of customer in relation to aggregate revenue | 10.00% | 10.00% | 10.00% |
Minimum | Customer Concentration Risk | Accounts Receivable | |||
Significant Accounting Policies [Line Items] | |||
Percentage of revenue for specified number of customer in relation to aggregate revenue | 10.00% | 10.00% | |
Minimum | Patents | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful life of intangible assets | 1 year | ||
Maximum | |||
Significant Accounting Policies [Line Items] | |||
Inventory sold period | 18 months | ||
Property plant and equipment estimated useful life | 7 years | ||
Estimated useful life of intangible assets | 12 years | ||
Deferred revenue for service contracts recognition period | 2 years | ||
Product warranty period | 1 year | ||
Maximum | Patents | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful life of intangible assets | 8 years |
Schedule_of_Allowance_for_Doub
Schedule of Allowance for Doubtful Accounts (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Receivables [Abstract] | |||
Beginning balance | $269 | $345 | $266 |
Charges to costs and expenses | -50 | 20 | 133 |
Write-offs | -14 | -96 | -155 |
Recoveries | 3 | 101 | |
Ending balance | $208 | $269 | $345 |
Inventory_Charges_Detail
Inventory Charges (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Inventory Disclosure [Abstract] | |||
Inventory charges | $1,816 | $1,559 | $1,381 |
Product_Warranty_Activity_Deta
Product Warranty Activity (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Guarantees [Abstract] | |||
Warranty accrual, beginning of period | $745 | $716 | $729 |
Reductions for warranty charges | -812 | -798 | -888 |
Additions to warranty reserve | 864 | 827 | 875 |
Warranty accrual, end of period | $797 | $745 | $716 |
Unrealized_Gain_Loss_on_Contra
Unrealized Gain (Loss) on Contracts (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Unrealized Gain (Loss) on Derivatives and Commodity Contracts [Abstract] | ||
Unrealized gain (loss) | $1,020 | ($437) |
Basic_and_Diluted_Net_Income_P
Basic and Diluted Net Income Per Share (Detail) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||
Shares used to calculate basic net income per share | 16,323 | 14,792 | 14,182 |
Dilutive effect of outstanding options and restricted stock units ("RSUs") | 505 | 358 | 208 |
Shares used to calculate diluted net income per share | 16,828 | 15,150 | 14,390 |
Securities not considered as they would have been antidilutive | 793 | 1,094 | 1,271 |
Acquisition_Additional_Informa
Acquisition - Additional Information (Detail) | 12 Months Ended | 0 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | |||||||
Share data in Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Oct. 02, 2014 | Oct. 02, 2013 | Oct. 02, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jul. 31, 2013 | Dec. 31, 2014 | Jul. 31, 2013 | Dec. 31, 2014 |
USD ($) | USD ($) | EUR (€) | Acquisition of ATT Systems | Acquisition of ATT Systems | Acquisition of ATT Systems | Acquisition of ATT Systems | Acquisition of ATT Systems | Acquisition of RTP | Acquisition of RTP | Acquisition of RTP | Acquisition of RTP | |
EUR (€) | USD ($) | EUR (€) | USD ($) | 1-Oct-15 | USD ($) | USD ($) | Fair Value, Inputs, Level 3 | Selling, general and administrative | ||||
EUR (€) | Contingent consideration related to the RTP Acquisition | Fair Value, Inputs, Level 3 | ||||||||||
USD ($) | Contingent consideration related to the RTP Acquisition | |||||||||||
USD ($) | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Total consideration net of cash acquired | $1,528,000 | $13,253,000 | $13,000,000 | € 9,600,000 | ||||||||
Common stock issued in acquisition | 1.6 | 1.6 | ||||||||||
Common stock issued in acquisition, value | 14,500,000 | |||||||||||
Acquisition of certain assets in cash | 8,800,000 | 1,900,000 | ||||||||||
Consideration to be paid | 400,000 | 400,000 | ||||||||||
Total working capital adjustment | 200,000 | 200,000 | ||||||||||
Weighted average amortization period | 6 years 9 months 18 days | 6 years 9 months 18 days | 7 years 4 months 24 days | |||||||||
Business acquisition, transaction costs | 700,000 | 200,000 | ||||||||||
Contingent consideration paid | 800,000 | |||||||||||
Fair value of contingent consideration | 1,300,000 | |||||||||||
Contingent consideration credited to selling, general and administrative expenses | $500,000 |
Schedule_of_Purchase_Price_All
Schedule of Purchase Price Allocation (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Assets: | ||||
Fixed assets, Useful Life | 3 years | |||
Goodwill | $12,823 | $14,471 | $990 | $971 |
Minimum | ||||
Assets: | ||||
Fixed assets, Useful Life | 2 years | |||
Useful Life | 1 year | |||
Liabilities: | ||||
Long-term deferred tax liability | 6 years | |||
Maximum | ||||
Assets: | ||||
Fixed assets, Useful Life | 7 years | |||
Useful Life | 12 years | |||
Liabilities: | ||||
Long-term deferred tax liability | 10 years | |||
Core technology | ||||
Assets: | ||||
Useful Life | 6 years | |||
Customer relationships | ||||
Assets: | ||||
Useful Life | 8 years | |||
Trademarks and tradenames | ||||
Assets: | ||||
Useful Life | 10 years | |||
Acquisition of ATT Systems | ||||
Assets: | ||||
Cash | 559 | |||
Accounts receivable | 408 | |||
Inventory | 2,585 | |||
Prepaid expenses and other | 1,393 | |||
Fixed assets | 137 | |||
Goodwill | 12,551 | |||
Other intangible assets | 14,859 | |||
Total assets | 32,492 | |||
Liabilities: | ||||
Accounts payable | 518 | |||
Accrued liabilities | 252 | |||
Long-term deferred tax liability | 4,061 | |||
Total liabilities | 4,831 | |||
Net assets acquired | 27,661 | |||
Acquisition of ATT Systems | Core technology | ||||
Assets: | ||||
Other intangible assets | 10,266 | |||
Acquisition of ATT Systems | Customer relationships | ||||
Assets: | ||||
Other intangible assets | 3,377 | |||
Acquisition of ATT Systems | Trademarks and tradenames | ||||
Assets: | ||||
Other intangible assets | 1,216 | |||
Acquisition of RTP | ||||
Assets: | ||||
Current assets | 1,198 | |||
Fixed assets, Useful Life | 2 years | |||
Fixed assets | 17 | |||
Goodwill | 641 | |||
Other intangible assets | 1,420 | |||
Liabilities: | ||||
Current liabilities | -62 | |||
Net assets acquired | 3,214 | |||
Acquisition of RTP | Core technology | ||||
Assets: | ||||
Useful Life | 5 years | |||
Other intangible assets | 930 | |||
Acquisition of RTP | Customer relationships | ||||
Assets: | ||||
Useful Life | 12 years | |||
Other intangible assets | $490 |
Schedule_of_Operating_Results_
Schedule of Operating Results of ATT and RTPs Systems (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Business Acquisition [Line Items] | |||
Revenue | $136,022 | $120,010 | $112,963 |
Operating income (loss) | 13,284 | 7,333 | 7,557 |
Acquisition of ATT Systems | |||
Business Acquisition [Line Items] | |||
Revenue | 12,936 | 3,778 | |
Operating income (loss) | 2,749 | 448 | |
Acquisition of RTP | |||
Business Acquisition [Line Items] | |||
Revenue | 2,954 | 1,222 | |
Operating income (loss) | $595 | $40 |
Schedule_of_Pro_Forma_Results_
Schedule of Pro Forma Results of Operations (Detail) (Acquisition of ATT Systems, USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Acquisition of ATT Systems | ||
Business Acquisition [Line Items] | ||
Pro forma revenue | $127,618 | $118,508 |
Pro forma net income | $14,564 | $5,834 |
Pro forma basic net income per share | $0.90 | $0.37 |
Pro forma diluted net income per share | $0.88 | $0.36 |
Information_Regarding_Marketab
Information Regarding Marketable Securities (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ||
Marketable securities, fair value | $1,626 | $4,278 |
Marketable securities, at cost | 1,626 | 4,277 |
Marketable securities, fair value | 1,626 | 4,278 |
Marketable securities, fair value, within one year | 1,620 | 4,277 |
Gross unrealized holding gains | 1 | |
Marketable securities, fair value, one to two years | 0 | 0 |
Gross unrealized holding losses | 0 | 0 |
Corporate obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Marketable securities, fair value | 1,620 | 4,277 |
Marketable securities, at cost | 1,620 | 4,276 |
Marketable securities, fair value | 1,620 | 4,277 |
Gross unrealized holding gains | 1 | |
Gross unrealized holding losses | 0 | 0 |
Corporate equities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Marketable securities, fair value | 6 | 1 |
Marketable securities, at cost | 6 | 1 |
Marketable securities, fair value | 6 | 1 |
U.S. treasury and agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross unrealized holding losses | $0 | $0 |
Fair_Value_of_Financial_Assets
Fair Value of Financial Assets and (Liabilities) Measured on Recurring Basis (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Contingent consideration related to the RTP Acquisition | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial liabilities measured on recurring basis | ($1,350) | |
Forward sale contracts | Japanese yen | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets measured on recurring basis | 2,510 | 523 |
Forward sale contracts | Euro | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets measured on recurring basis | 22,056 | 24,561 |
Forward purchase contract | Euro | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets measured on recurring basis | 726 | 2,061 |
Corporate equities | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets measured on recurring basis | 6 | 1 |
Corporate obligations | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets measured on recurring basis | $1,620 | $4,277 |
Summary_of_Level_3_Activity_fo
Summary of Level 3 Activity for Contingent Consideration Liability (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Fair Value Disclosures [Abstract] | |
Beginning balance | $1,350 |
Increase in contingent consideration due to re-measurement | -522 |
Payment of contingent consideration | ($828) |
Inventories_Detail
Inventories (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Raw materials | $14,120 | $15,234 |
Work-in-process | 3,809 | 2,958 |
Finished goods | 6,713 | 6,692 |
Inventories | $24,642 | $24,884 |
Fixed_Assets_Detail
Fixed Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | $36,507 | $34,133 |
Less accumulated depreciation | -28,407 | -27,730 |
Property plant and equipment net | 8,100 | 6,403 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | 25,749 | 25,673 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | 9,220 | 8,253 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | $1,538 | $207 |
Depreciation_Expense_Detail
Depreciation Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $3,335 | $3,661 | $3,547 |
Change_in_Goodwill_Detail
Change in Goodwill (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill [Line Items] | |||
Balance, beginning of period | $14,471 | $990 | $971 |
Effect of exchange rate changes | -1,648 | 289 | 19 |
Balance, end of period | 12,823 | 14,471 | 990 |
Acquisition of RTP | |||
Goodwill [Line Items] | |||
Goodwill acquisition | 641 | ||
Balance, end of period | 641 | ||
Acquisition of ATT Systems | |||
Goodwill [Line Items] | |||
Goodwill acquisition | 12,551 | ||
Balance, end of period | $12,551 |
Intangible_Assets_Net_Detail
Intangible Assets, Net (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Less accumulated amortization | ($5,324) | ($5,228) |
Total, Net | 12,572 | 16,937 |
Total, Net | 12,664 | |
Purchased Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Customer relationships | 4,323 | 7,198 |
Core technology | 12,481 | 13,728 |
Trademarks and tradenames | 1,092 | 1,239 |
Total, Gross | 17,896 | 22,165 |
Less accumulated amortization | -5,324 | -5,228 |
Total, Net | 12,572 | 16,937 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total, Gross | 4,632 | 4,632 |
Less accumulated amortization | -4,540 | -4,349 |
Total, Net | $92 | $283 |
Intangible_Asset_Amortization_
Intangible Asset Amortization (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets [Line Items] | |||
Intangible amortization | $3,011 | $1,522 | $1,082 |
Selling, general and administrative | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible amortization | $3,011 | $1,522 | $1,082 |
Estimated_Amortization_of_Inta
Estimated Amortization of Intangible Assets (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2015 | $2,632 |
2016 | 2,340 |
2017 | 2,321 |
2018 | 2,244 |
2019 | 1,751 |
Thereafter | 1,376 |
Total, Net | $12,664 |
Accrued_Liabilities_Detail
Accrued Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Accrued Liabilities [Line Items] | ||
Accrued compensation and benefits | $3,606 | $2,812 |
Accrued sales taxes and VAT | 276 | 470 |
Accrued income taxes | 1,628 | 492 |
Accrued warranty | 797 | 745 |
Accrued restructuring costs | 1,959 | 1,163 |
Other | 783 | 1,081 |
Accrued liabilities | 9,505 | 8,859 |
Acquisition of RTP | ||
Schedule of Accrued Liabilities [Line Items] | ||
Contingent consideration related to RTP acquisition | 1,350 | |
Acquisition of ATT Systems | ||
Schedule of Accrued Liabilities [Line Items] | ||
Payable to seller related to ATT acquisition | $456 | $746 |
Line_of_Credit_Additional_Info
Line of Credit - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Aug. 31, 2013 | |
Line of Credit Facility [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $10,000,000 | |
Line of credit facility, interest rate description | Interest is based primarily on the London Interbank Offered Rate ("LIBOR"). | |
Line of credit facility, expiration date | 31-Aug-15 | |
Line of credit facility, amounts outstanding | 0 | |
Letters of credit, amounts outstanding | 0 | |
Line of credit facility, available for borrowing | 10,000,000 | |
Letters of credit | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $2,500,000 |
Domestic_and_Foreign_PreTax_In
Domestic and Foreign Pre-Tax Income from Continuing Operations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Domestic | $8,076 | $5,619 | $4,933 |
Foreign | 4,588 | 1,462 | 1,875 |
Income before income taxes | $12,664 | $7,081 | $6,808 |
Income_Tax_Expense_Benefit_fro
Income Tax Expense (Benefit) from Continuing Operations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Federal | $1,086 | ($253) | $13 |
State | 184 | -39 | 32 |
Foreign | 1,862 | 1,039 | 752 |
Total current | 3,132 | 747 | 797 |
Federal | 133 | -5,912 | |
State | 46 | -928 | |
Foreign | -577 | -244 | -88 |
Total deferred | -398 | -7,084 | -88 |
Income tax (benefit) expense | $2,734 | ($6,337) | $709 |
Tax_Provision_Additional_Infor
Tax Provision - Additional Information (Detail) (USD $) | 12 Months Ended | 3 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 |
Income Taxes [Line Items] | ||
Federal statutory tax rate | 34.00% | |
Undistributed foreign earnings | $8 | $8 |
Japan | ||
Income Taxes [Line Items] | ||
Repatriated subsidiary earnings through cash dividend | 2.5 | |
Undistributed foreign earnings | $0.90 | $0.90 |
Reconciliation_between_Income_
Reconciliation between Income Taxes Computed at Federal Statutory Rate and Provision (Benefit) for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Federal income tax provision computed at statutory rates | $4,269 | $2,407 | $2,281 |
Difference in foreign tax rate | -405 | 174 | -141 |
State income taxes, net of federal benefit | 142 | 140 | 27 |
Stock-based compensation | 142 | 966 | 96 |
Research and development tax credits | -33 | -256 | 56 |
Expiration of tax credits | 236 | 167 | 200 |
Foreign tax credits | -2,527 | -47 | -136 |
Foreign dividend | 1,281 | ||
Change in valuation allowance | -158 | -9,656 | -1,877 |
Unrecognized tax benefits | 8 | 9 | 9 |
Foreign earnings not permanently reinvested | -207 | -58 | |
Domestic production deduction | -251 | ||
Other | 30 | -34 | 252 |
Income tax (benefit) expense | $2,734 | ($6,337) | $709 |
Components_of_Deferred_Income_
Components of Deferred Income Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Deferred Tax Assets and Liabilities [Line Items] | ||
Inventory | $1,037 | $1,019 |
Accrued vacation and bonus | 664 | 435 |
Unrealized loss on forward contracts | 856 | 132 |
Gross current deferred tax assets | 3,027 | 2,268 |
Valuation allowance | 0 | 0 |
Net current deferred tax assets | 3,027 | 2,268 |
Federal and state net operating loss ("NOL") carryforwards | 21 | 573 |
Federal and state tax credits | 1,781 | 2,640 |
Stock-based compensation | 565 | 506 |
Intangibles | 1,278 | 1,225 |
Other non-current deferred tax assets | 637 | 768 |
Gross non-current deferred tax assets | 4,464 | 5,886 |
Valuation allowance | -158 | |
Net non-current deferred tax assets | 4,464 | 5,728 |
Foreign earnings | -536 | |
Intangibles | -2,936 | -3,843 |
Total non-current deferred tax liabilities | -3,202 | -4,493 |
Non-current deferred tax assets, net | 1,262 | 1,235 |
Net total deferred tax assets | 4,289 | 3,503 |
Current | ||
Schedule of Deferred Tax Assets and Liabilities [Line Items] | ||
Reserves and allowances | 273 | 420 |
Other current deferred tax assets | 197 | 262 |
Non Current | ||
Schedule of Deferred Tax Assets and Liabilities [Line Items] | ||
Reserves and allowances | 182 | 174 |
Other non-current deferred tax liabilities | ($266) | ($114) |
Valuation_Allowance_Detail
Valuation Allowance (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Income Tax Disclosure [Abstract] | |
Valuation allowance | $158 |
Net_Decrease_in_Total_Valuatio
Net Decrease in Total Valuation Allowance (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Decrease in valuation allowance | ($158) | ($9,656) | ($1,877) |
Net_Operating_Loss_and_Tax_Cre
Net Operating Loss and Tax Credit Carryforwards (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Tax Credit Carryforward [Line Items] | |
Federal and state research and experimentation credit carryforwards | 1.8 |
State NOL carryforwards | 0.8 |
Research and Development Tax Credit Carryforward | Minimum | |
Tax Credit Carryforward [Line Items] | |
Expiration date | 2014 |
Research and Development Tax Credit Carryforward | Maximum | |
Tax Credit Carryforward [Line Items] | |
Expiration date | 2034 |
State Net Operating Loss Carryforwards | Minimum | |
Tax Credit Carryforward [Line Items] | |
Expiration date | 2016 |
State Net Operating Loss Carryforwards | Maximum | |
Tax Credit Carryforward [Line Items] | |
Expiration date | 2031 |
Reconciliation_of_Unrecognized
Reconciliation of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Beginning Balance | $159 | $150 | $141 |
Increases due to tax positions taken during the current year | 9 | ||
Increases due to tax positions taken during a prior year | 9 | ||
Decreases due to tax positions taken during a prior year | -5 | ||
Ending Balance | $154 | $159 | $150 |
Open_Tax_Year_Detail
Open Tax Year (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
U.S. | Earliest Tax Year [Member] | |
Income Tax Examination [Line Items] | |
Open tax year | 2011 |
U.S. | Latest Tax Year [Member] | |
Income Tax Examination [Line Items] | |
Open tax year | 2014 |
Japan | Earliest Tax Year [Member] | |
Income Tax Examination [Line Items] | |
Open tax year | 2008 |
Japan | Latest Tax Year [Member] | |
Income Tax Examination [Line Items] | |
Open tax year | 2014 |
Germany | Earliest Tax Year [Member] | |
Income Tax Examination [Line Items] | |
Open tax year | 2010 |
Germany | Latest Tax Year [Member] | |
Income Tax Examination [Line Items] | |
Open tax year | 2014 |
Other_Income_Expense_Net_Detai
Other Income (Expense), Net (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Income and Expenses [Abstract] | |||
Interest income, net | $29 | $44 | $52 |
Foreign currency losses | -3,629 | -311 | -950 |
Gains on foreign currency forward contracts | 3,016 | 90 | 166 |
Other | -36 | -75 | -17 |
Total other income (expense), net | ($620) | ($252) | ($749) |
Certain_Information_Regarding_
Certain Information Regarding Stock-Based Compensation (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Weighted average grant-date per share fair value of stock options granted | $5.58 | $5.35 | $2.56 |
Total intrinsic value of stock options exercised | $377 | $523 | $4 |
Fair value of restricted shares vested | 2,309 | 1,398 | 1,236 |
Tax benefit realized from stock options exercised and restricted stock units ("RSUs") released | 954 | 729 | 436 |
Tax benefit recognized in our Consolidated Statements of Operations related to stock-based compensation | $750 | $537 | $25 |
StockBased_Compensation_Includ
Stock-Based Compensation Included in Consolidated Statements of Operations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation | $2,482 | $1,614 | $1,459 |
Cost of sales | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation | 234 | 201 | 165 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation | 321 | 198 | 242 |
Selling, general and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation | $1,927 | $1,215 | $1,052 |
WeightedAverage_Assumptions_Us
Weighted-Average Assumptions Used to Determine Fair Value of Stock-Based Awards Granted (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 0.00% | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 1.80% | ||
Risk-free interest rate, minimum | 1.10% | 0.80% | |
Risk-free interest rate, maximum | 1.80% | 1.20% | |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected term | 6 years 3 months | 6 years 3 months | 6 years 6 months |
Expected volatility | 61.20% | ||
Expected volatility, minimum | 60.60% | 58.20% | |
Expected volatility, maximum | 61.00% | 59.40% | |
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 0.10% | 0.80% | |
Risk-free interest rate, minimum | 0.10% | ||
Risk-free interest rate, maximum | 0.20% | ||
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected term | 6 months | 6 months | 6 months |
Expected volatility, minimum | 35.40% | 24.50% | 40.10% |
Expected volatility, maximum | 37.80% | 31.50% | 54.30% |
StockBased_Compensation_and_St2
Stock-Based Compensation and Stock-Based Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 0.00% | ||
Total unrecognized stock-based compensation | 4,000,000 | ||
Total unrecognized stock-based compensation recognition period | 2 years 2 months 12 days | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Stock issuance price percentage | 100.00% | ||
Contractual term of options granted under the Plans | 10 years | ||
Shares available for future grant | 994,202 | ||
Shares of common stock reserved for future issuance under the Plans | 2,306,705 | ||
Stock Options | Each year over four years | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award granted vesting percentage per year | 25.00% | ||
Nonqualified Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock issuance price percentage | 85.00% | ||
Restricted Stock Units | Each year over four years | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award granted vesting percentage per year | 25.00% | ||
Restricted Stock Units | Each year over two years | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award granted vesting percentage per year | 50.00% | ||
2000 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation, shares authorized | 3,000,000 | ||
2010 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation, shares authorized | 2,869,600 | ||
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Stock issuance price percentage | 85.00% | ||
Percentage of employee compensation for purchase of common stock, minimum | 2.00% | ||
Percentage of employee compensation for purchase of common stock, maximum | 15.00% | ||
Employee contributions for stock purchase, maximum | 12,500 | ||
Employee Stock Purchase Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation, shares authorized | 1,000,000 |
Stock_Option_Activity_Detail
Stock Option Activity (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Options Outstanding, Beginning | 1,042,937 |
Granted, Options Outstanding | 90,000 |
Exercised, Options Outstanding | -148,166 |
Forfeited, Options Outstanding | -67,992 |
Options Outstanding, Ending | 916,779 |
Weighted Average Exercise Price, Beginning | $6.52 |
Granted, Weighted Average Exercise Price | $9.61 |
Exercised, Weighted Average Exercise Price | $9.90 |
Forfeited, Weighted Average Exercise Price | $9.01 |
Weighted Average Exercise Price, Ending | $6.10 |
Certain_Information_Regarding_1
Certain Information Regarding Options Outstanding (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Number, Option Outstanding | 916,779 | 1,042,937 |
Weighted-average exercise price, Option Outstanding | $6.10 | $6.52 |
Aggregate intrinsic value, Option Outstanding | $7,803,203 | |
Weighted-average remaining contractual term, Option Outstanding | 6 years 4 months 17 days | |
Number, Option Exercisable | 555,689 | |
Weighted-average exercise price, Option Exercisable | $5.48 | |
Aggregate intrinsic value, Option Exercisable | $5,071,011 | |
Weighted-average remaining contractual term, Option Exercisable | 5 years 4 months 10 days |
Summary_of_Restricted_Stock_Un
Summary of Restricted Stock Units Activity (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Restricted Stock Units, Outstanding, Beginning balance | 409,403 |
Granted, Restricted Stock Units | 226,400 |
Vested, Restricted Stock Units | -205,739 |
Forfeited, Restricted Stock Units | -34,340 |
Restricted Stock Units, Outstanding, Ending balance | 395,724 |
Weighted Average Grant Date Per Share Fair Value, Beginning balance | $6.87 |
Granted, Weighted Average Grant Date Per Share Fair Value | $10.47 |
Vested, Weighted Average Grant Date Per Share Fair Value | $7.04 |
Forfeited, Weighted Average Grant Date Per Share Fair Value | $6.98 |
Weighted Average Grant Date Per Share Fair Value, Ending balance | $8.83 |
Information_Relates_to_Employe
Information Relates to Employee Stock Purchase Plan (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
2013 ESPP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares issued pursuant to the ESPP | 70,533 |
Shares remaining available for purchase, ending balance | 929,467 |
Employee Stock Purchase Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average price of shares issued | 9 |
Discount per share from the fair market value on the dates of purchase | 1.71 |
Summary_of_Transactions_with_F
Summary of Transactions with FEI (Detail) (FEI Company, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
FEI Company | |||
Related Party Transaction [Line Items] | |||
Equipment and services purchased from FEI | $36 | $33 | $37 |
Equipment sold to FEI | 5 | ||
Due to FEI | 10 | 8 | |
Due from FEI | $0 | $0 |
Summary_of_Transactions_with_R
Summary of Transactions with Raytheon (Detail) (Raytheon, Inc., USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Raytheon, Inc. | |||
Related Party Transaction [Line Items] | |||
Equipment sold to Raytheon | $176 | $607 | $267 |
Due from Raytheon | $21 | $10 |
Summary_of_Transactions_with_L
Summary of Transactions with Lam (Detail) (Lam Research Corporation, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2012 |
Lam Research Corporation | ||
Related Party Transaction [Line Items] | ||
Equipment sold to Lam | $388 | $21 |
Due from Lam | $3 |
Employee_Benefit_Plan_Addition
Employee Benefit Plan - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
Employer matching contribution | 50.00% |
Maximum employee earning contribution in 401(k) plan | 3.00% |
Employer_Matching_Contribution
Employer Matching Contributions for Savings Plan (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Compensation and Retirement Disclosure [Abstract] | |||
401(k) matching contributions | $534 | $412 | $362 |
Future_Minimum_Lease_Payments_
Future Minimum Lease Payments under Non-Cancelable Operating Leases (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Operating lease | |
2015 | $3,605 |
2016 | 2,088 |
2017 | 2,085 |
2018 | 1,418 |
2019 | 1,450 |
Thereafter | 597 |
Total minimum lease payments | $11,243 |
Lease_Expense_Detail
Lease Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Commitments and Contingencies Disclosure [Abstract] | |||
Lease expense | $2,630 | $2,656 | $2,575 |
Restructuring_Charges_Detail
Restructuring Charges (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $1,236 | $227 |
Termination and severance related | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 683 | |
Lease abandonment and termination | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $553 | $227 |
Restructuring_Costs_of_Consoli
Restructuring Costs of Consolidated Statements of Operations (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring cost | $1,236 | $227 |
Cost of sales | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring cost | 154 | |
Selling, general and administrative | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring cost | $1,082 | $227 |
Charges_Expenditures_WriteOffs
Charges, Expenditures, Write-Offs and Adjustments Related to Restructuring Accruals (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | |||
Beginning Accrued Liability | $2,129 | $3,034 | $4,147 |
Charged to Expense, Net | 1,236 | 227 | |
Expenditures | -1,406 | -1,113 | |
Write-Offs and Adjustments | 0 | 0 | |
Ending Accrued Liability | 1,959 | 2,129 | 3,034 |
Termination and severance related | |||
Restructuring Cost and Reserve [Line Items] | |||
Beginning Accrued Liability | 10 | ||
Charged to Expense, Net | 683 | ||
Expenditures | -375 | -10 | |
Write-Offs and Adjustments | 0 | 0 | |
Ending Accrued Liability | 308 | ||
Lease abandonment | |||
Restructuring Cost and Reserve [Line Items] | |||
Beginning Accrued Liability | 2,129 | 3,034 | 4,137 |
Charged to Expense, Net | 553 | 227 | |
Expenditures | -1,031 | -1,132 | -1,103 |
Write-Offs and Adjustments | 0 | 0 | 0 |
Ending Accrued Liability | $1,651 | $2,129 | $3,034 |
Revenue_and_Operating_Income_I
Revenue and Operating Income Information by Segment (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Revenue | $136,022 | $120,010 | $112,963 |
Gross profit | 70,314 | 54,724 | 49,951 |
Gross margin | 51.70% | 45.60% | 44.20% |
Income (loss) from operations | 13,284 | 7,333 | 7,557 |
Amortization expense | 3,011 | 1,522 | 1,082 |
Corporate Unallocated | |||
Segment Reporting Information [Line Items] | |||
Income (loss) from operations | -15,037 | -14,029 | -12,252 |
Systems | |||
Segment Reporting Information [Line Items] | |||
Amortization expense | 1,200 | 700 | |
Systems | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue | 82,850 | 79,229 | 74,368 |
Gross profit | 37,775 | 33,177 | 29,391 |
Gross margin | 45.60% | 41.90% | 39.50% |
Income (loss) from operations | 7,553 | 9,794 | 9,651 |
Probes | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue | 53,172 | 40,781 | 38,595 |
Gross profit | 32,539 | 21,547 | 20,560 |
Gross margin | 61.20% | 52.80% | 53.30% |
Income (loss) from operations | $20,768 | $11,568 | $10,158 |
Segment_Reporting_and_Enterpri2
Segment Reporting and Enterprise-Wide Disclosures - Additional Information (Detail) (Customer Concentration Risk, Total Revenue) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Customer | Customer | Customer | |
Segment Reporting Information [Line Items] | |||
Number of customers accounted for 10% or greater of our total revenue | 0 | 0 | 0 |
Minimum | |||
Segment Reporting Information [Line Items] | |||
Percentage of revenue for specified number of customer in relation to aggregate revenue | 10.00% | 10.00% | 10.00% |
Revenues_by_Geographic_Area_De
Revenues by Geographic Area (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Revenues | $136,022 | $120,010 | $112,963 |
U.S. | |||
Segment Reporting Information [Line Items] | |||
Revenues | 39,855 | 37,662 | 33,445 |
Asia Pacific | |||
Segment Reporting Information [Line Items] | |||
Revenues | 63,660 | 50,748 | 51,290 |
Europe | |||
Segment Reporting Information [Line Items] | |||
Revenues | 30,076 | 28,334 | 25,718 |
Other | |||
Segment Reporting Information [Line Items] | |||
Revenues | $2,431 | $3,266 | $2,510 |
LongLived_Assets_Exclusive_of_
Long-Lived Assets, Exclusive of Deferred Income Taxes, by Geographic Area (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets, exclusive of long-term investments and deferred income taxes | $34,439 | $38,925 |
U.S. | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets, exclusive of long-term investments and deferred income taxes | 9,334 | 8,660 |
Asia Pacific | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets, exclusive of long-term investments and deferred income taxes | 304 | 339 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets, exclusive of long-term investments and deferred income taxes | $24,801 | $29,926 |
Stock_Repurchase_Plans_Additio
Stock Repurchase Plans - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 31-May-14 | Nov. 30, 2012 | Feb. 28, 2012 | |
Equity, Class of Treasury Stock [Line Items] | ||||||||||||
Value of common stock authorized for repurchase | $2,000,000 | |||||||||||
Number of shares repurchased | 3,900 | 22,811 | 88,445 | 9,800 | 59,006 | 214,087 | 183,962 | |||||
Common stock repurchased, weighted-average price | $9.47 | $9.45 | $9.24 | $5.87 | $5.60 | $4.67 | $7.94 | |||||
Common stock repurchased, value | 37,000 | 216,000 | 817,000 | 58,000 | 332,000 | 1,000,000 | 1,070,000 | 58,000 | 1,332,000 | |||
Maximum | ||||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||||
Value of common stock authorized for repurchase | $2,000,000 | $1,000,000 |
Summary_of_Information_Regardi
Summary of Information Regarding Repurchases of Common Stock (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Common Stock Repurchases [Abstract] | |||||||||
Number of Shares | 3,900 | 22,811 | 88,445 | 9,800 | 59,006 | 214,087 | 183,962 | ||
Weighted average per share purchase price | $9.47 | $9.45 | $9.24 | $5.87 | $5.60 | $4.67 | $7.94 | ||
Total purchase price | $37 | $216 | $817 | $58 | $332 | $1,000 | $1,070 | $58 | $1,332 |
Amount remaining for repurchase | $2,540 | $2,577 | $793 | $1,610 | $1,668 | $2,540 | $1,668 |