Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 1-May-15 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | NATUS MEDICAL INC | |
Entity Central Index Key | 878526 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 32,964,943 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $66,999 | $66,558 |
Accounts receivable, net of allowance for doubtful accounts of $4,310 in 2015 and $4,324 in 2014 | 81,990 | 82,277 |
Inventories | 41,371 | 40,051 |
Prepaid expenses and other current assets | 16,394 | 17,408 |
Deferred income tax | 11,485 | 11,511 |
Total current assets | 218,239 | 217,805 |
Property and equipment, net | 18,214 | 17,923 |
Intangible assets, net | 89,431 | 92,761 |
Goodwill | 109,327 | 96,316 |
Other assets | 8,529 | 10,016 |
Total assets | 443,740 | 434,821 |
Current liabilities: | ||
Accounts payable | 22,253 | 21,371 |
Accrued liabilities | 37,122 | 36,024 |
Deferred revenue | 12,014 | 11,745 |
Total current liabilities | 71,389 | 69,140 |
Long-term liabilities: | ||
Other liabilities | 5,149 | 4,859 |
Deferred income tax | 8,637 | 8,107 |
Total liabilities | 85,175 | 82,106 |
Stockholders’ equity: | ||
Common Stock, $0.001 par value, 120,000,000 shares authorized; shares issued and outstanding 32,902,483 in 2015 and 32,649,158 in 2014 | 317,629 | 315,296 |
Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued and outstanding in 2015 and 2014 | 0 | 0 |
Retained earnings | 77,486 | 68,890 |
Accumulated other comprehensive loss | -36,550 | -31,471 |
Total stockholders’ equity | 358,565 | 352,715 |
Total liabilities and stockholders’ equity | $443,740 | $434,821 |
Consolidated_Balance_Sheets_un
Consolidated Balance Sheets (unaudited) (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $4,310 | $4,324 |
Common Stock, par value | $0.00 | $0.00 |
Common Stock, shares authorized | 120,000,000 | 120,000,000 |
Common Stock, shares issued | 32,902,483 | 32,649,158 |
Common Stock, shares outstanding | 32,902,483 | 32,649,158 |
Preferred Stock, par value | $0.00 | $0.00 |
Preferred Stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income and Comprehensive Income (unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Revenue | $89,395 | $85,624 |
Cost of revenue | 35,105 | 33,981 |
Intangibles amortization | 682 | 1,046 |
Gross profit | 53,608 | 50,597 |
Operating expenses: | ||
Marketing and selling | 20,742 | 20,630 |
Research and development | 6,857 | 7,177 |
General and administrative | 11,552 | 11,729 |
Intangibles amortization | 955 | 1,136 |
Restructuring | 156 | 538 |
Total operating expenses | 40,262 | 41,210 |
Income from operations | 13,346 | 9,387 |
Other income (expense), net | -829 | 312 |
Income before provision for income tax | 12,517 | 9,699 |
Provision for income tax expense | 3,920 | 2,944 |
Net income | 8,597 | 6,755 |
Foreign currency translation adjustment | -5,079 | -2,891 |
Comprehensive income | $3,518 | $3,864 |
Earnings per share: | ||
Basic (dollars per share) | $0.27 | $0.22 |
Diluted (dollars per share) | $0.26 | $0.21 |
Weighted average shares used in the calculation of earnings per share: | ||
Basic (in shares) | 32,127 | 31,062 |
Diluted (in shares) | 33,097 | 32,185 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating activities: | ||
Net income | $8,597 | $6,755 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for losses on accounts receivable | 276 | 465 |
Excess tax benefit on the exercise of stock options | -1,054 | -2,194 |
Depreciation and amortization | 2,983 | 3,302 |
Warranty reserve | 876 | 390 |
Share-based compensation | 1,731 | 1,609 |
Share-based compensation | ||
Accounts receivable | 413 | 708 |
Inventories | -1,243 | 926 |
Prepaid expenses and other assets | 778 | -1,936 |
Accounts payable | 1,079 | -2,710 |
Accrued liabilities | -2,492 | -2,761 |
Deferred revenue | 159 | -714 |
Deferred income tax | 1,709 | 1,844 |
Net cash provided by operating activities | 13,812 | 5,684 |
Liabilities acquired in acquisitions | ||
Acquisition of businesses, net of cash acquired | -12,078 | -4,925 |
Purchases of property and equipment | -1,399 | -806 |
Purchase of intangible assets | 0 | -35 |
Net cash used in investing activities | -13,477 | -5,766 |
Purchase of intangible assets | ||
Proceeds from stock option exercises and Employee Stock Purchase Program (“ESPPâ€) purchases | 1,319 | 6,300 |
Excess tax benefit on the exercise of stock options | 1,054 | 2,194 |
Repurchase of common stock | -1,312 | 0 |
Tax payments to settle employee liability | -460 | 0 |
Payments on borrowings | 0 | -5,079 |
Net cash provided by financing activities | 601 | 3,415 |
Exchange rate changes effect on cash and cash equivalents | -495 | 150 |
Net increase in cash and cash equivalents | 441 | 3,483 |
Cash and cash equivalents, beginning of period | 66,558 | 56,106 |
Cash and cash equivalents, end of period | 66,999 | 59,589 |
Cash and cash equivalents, end of period | ||
Cash paid for interest | 2 | 186 |
Cash paid for income taxes | 149 | 574 |
Cash paid for income taxes | ||
Property and equipment included in accounts payable | 172 | 265 |
Inventory transferred to property and equipment | $377 | $398 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation |
The accompanying interim condensed consolidated financial statements of Natus Medical Incorporated (“Natus,” “we,” “us,” “our,” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The accounting policies followed in the preparation of the interim condensed consolidated financial statements are consistent in all material respects with those presented in Note 1 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. | |
Interim financial reports are prepared in accordance with the rules and regulations of the Securities and Exchange Commission; accordingly, they do not include all of the information and notes required by GAAP for annual financial statements. The interim financial information is unaudited, and except for the prior period correction of errors disclosed below, reflects all normal adjustments that are, in the opinion of management, necessary for the fair presentation of our financial position, results of operations, and cash flows for the interim periods presented. The consolidated balance sheet as of December 31, 2014 was derived from audited financial statements, but does not include all disclosures required by GAAP. The accompanying financial statements should be read in conjunction with the financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. We have made certain reclassifications to the prior period to conform to current period presentation. | |
Operating results for the three months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. | |
Recent Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 requires revenue recognition to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 sets forth a new revenue recognition model that requires identifying the contract, identifying the performance obligations, determining the transaction price, allocating the transaction price to performance obligations and recognizing the revenue upon satisfaction of performance obligations. The Company is currently evaluating the impact of ASU 2014-09, which is effective for the Company in our fiscal year ending December 31, 2017. |
Business_Combinations
Business Combinations | 3 Months Ended |
Mar. 31, 2015 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations |
Global Neuro-Diagnostics | |
The Company acquired Global Neuro-Diagnostics ("GND") through an equity purchase on January 23, 2015. GND's service offers patients a more convenient way to complete routine EEG and video EEG testing which can be performed at the home, hospital or physician's office. The service also provides comprehensive reporting and support to the physician. The cash consideration for GND was $11.4 million. The purchase agreement also included an earn-out condition which the Company estimates to be $3.3 million. This earn-out is contingent upon GND achieving certain revenue milestones from 2015 to 2017. | |
Valuing intangible assets required us to make significant estimates that will be adjusted in the future; consequently, the purchase price allocation is considered preliminary. Final determination of the value of intangible assets is expected during the second quarter of 2015 and will result in an adjustment to the preliminary purchase price allocation, with an offsetting adjustment to goodwill. Pro forma financial information for the GND acquisition is not presented as it is not considered material. | |
NicView | |
On January 2, 2015, the Company purchased the assets of NicView for cash consideration of $1.1 million. NicView provides streaming video for families with babies in the neonatal intensive care unit. | |
Hearing Screening as a Service | |
In the first quarter of 2014, the Company entered into two asset purchase agreements for companies in the newborn hearing screening services market for cash consideration of $2.6 million. The purchase agreements also included an earn-out condition which is contingent upon annual revenue growth through 2016. This earn-out condition is currently estimated at $0.8 million. Both acquisitions support the Company’s objective to enter this market that complements our newborn hearing screening device business. This hearing screening services business operates under the name Peloton. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Earnings Per Share | Earnings Per Share | |||||||
The components of basic and diluted EPS are as follows (in thousands): | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Net income | $ | 8,597 | $ | 6,755 | ||||
Weighted average common shares | 32,127 | 31,062 | ||||||
Dilutive effect of stock based awards | 970 | 1,123 | ||||||
Diluted Shares | 33,097 | 32,185 | ||||||
Basic earnings per share | $ | 0.27 | $ | 0.22 | ||||
Diluted earnings per share | $ | 0.26 | $ | 0.21 | ||||
Shares excluded from calculation of diluted EPS | — | 230 | ||||||
Inventories
Inventories | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | Inventories | |||||||
Inventories consist of the following (in thousands): | ||||||||
31-Mar-15 | 31-Dec-14 | |||||||
Raw materials and subassemblies | $ | 21,438 | $ | 19,821 | ||||
Work in process | 1,864 | 1,808 | ||||||
Finished goods | 24,320 | 26,037 | ||||||
Total inventories | 47,622 | 47,666 | ||||||
Less: Non-current inventories | (6,251 | ) | (7,615 | ) | ||||
Inventories, current | $ | 41,371 | $ | 40,051 | ||||
At March 31, 2015 and December 31, 2014, the Company has classified $6.3 million and $7.6 million, respectively, of inventories as other assets. This inventory consists primarily of service components used to repair products pursuant to warranty obligations and extended service contracts, including service components for products we are not currently selling. Management believes that these inventories will be utilized for their intended purpose. |
Intangible_Assets
Intangible Assets | 3 Months Ended | |||||||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
Intangible Assets | Intangible Assets | |||||||||||||||||||||||||||||||
The following table summarizes the components of gross and net intangible asset balances (in thousands): | ||||||||||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||||||||||||||||||||||
Gross | Accumulated | Accumulated | Net Book | Gross | Accumulated | Accumulated | Net Book | |||||||||||||||||||||||||
Carrying | Impairment | Amortization | Value | Carrying | Impairment | Amortization | Value | |||||||||||||||||||||||||
Amount | Amount | |||||||||||||||||||||||||||||||
Intangible assets with finite lives: | ||||||||||||||||||||||||||||||||
Technology | $ | 63,244 | — | $ | (28,714 | ) | $ | 34,530 | $ | 64,376 | — | $ | (28,195 | ) | $ | 36,181 | ||||||||||||||||
Customer related | 30,458 | — | (12,076 | ) | $ | 18,382 | 31,189 | — | (11,786 | ) | 19,403 | |||||||||||||||||||||
Internally developed software | 14,193 | — | (6,864 | ) | $ | 7,329 | 14,109 | — | (6,511 | ) | 7,598 | |||||||||||||||||||||
Patents | 2,655 | — | (2,086 | ) | $ | 569 | 2,794 | — | (2,154 | ) | 640 | |||||||||||||||||||||
Backlog | 717 | — | (717 | ) | $ | — | 719 | — | (719 | ) | — | |||||||||||||||||||||
Definite-lived intangible assets | 111,267 | (50,457 | ) | 60,810 | 113,187 | — | (49,365 | ) | 63,822 | |||||||||||||||||||||||
Intangible assets with indefinite lives: | ||||||||||||||||||||||||||||||||
Trade names | 31,950 | (3,329 | ) | — | $ | 28,621 | 32,443 | (3,504 | ) | — | 28,939 | |||||||||||||||||||||
Total intangible assets | $ | 143,217 | $ | (3,329 | ) | $ | (50,457 | ) | $ | 89,431 | $ | 145,630 | $ | (3,504 | ) | $ | (49,365 | ) | $ | 92,761 | ||||||||||||
Finite-lived intangible assets are amortized over their weighted average lives of 17 years for technology, 13 years for customer related intangibles, 7 years for internally developed software, and 13 years for patents. | ||||||||||||||||||||||||||||||||
Internally developed software consists of $12.0 million relating to costs incurred for development of internal use computer software and $2.2 million for development of software to be sold. | ||||||||||||||||||||||||||||||||
Amortization expense related to intangible assets with definite lives was as follows (in thousands): | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||||
Technology | $ | 960 | $ | 1,096 | ||||||||||||||||||||||||||||
Customer related | 605 | 647 | ||||||||||||||||||||||||||||||
Internally developed software | 354 | 288 | ||||||||||||||||||||||||||||||
Patents | 28 | 30 | ||||||||||||||||||||||||||||||
Total amortization | $ | 1,947 | $ | 2,061 | ||||||||||||||||||||||||||||
Expected amortization expense related to amortizable intangible assets is as follows (in thousands): | ||||||||||||||||||||||||||||||||
Nine months ending December 31, 2015 | $ | 5,681 | ||||||||||||||||||||||||||||||
2016 | 6,917 | |||||||||||||||||||||||||||||||
2017 | 6,634 | |||||||||||||||||||||||||||||||
2018 | 6,410 | |||||||||||||||||||||||||||||||
2019 | 5,445 | |||||||||||||||||||||||||||||||
2020 | 4,531 | |||||||||||||||||||||||||||||||
Thereafter | 25,192 | |||||||||||||||||||||||||||||||
Total expected amortization expense | $ | 60,810 | ||||||||||||||||||||||||||||||
Goodwill
Goodwill | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill | Goodwill | |||
The carrying amount of goodwill and the changes in those balances are as follows (in thousands): | ||||
31-Dec-14 | $ | 96,316 | ||
Acquisitions | 14,854 | |||
Foreign currency translation | (1,843 | ) | ||
31-Mar-15 | $ | 109,327 | ||
Property_and_Equipment_net
Property and Equipment, net | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property and Equipment, net | Property and Equipment, net | |||||||
Property and equipment, net consist of the following (in thousands): | ||||||||
31-Mar-15 | 31-Dec-14 | |||||||
Land | $ | 3,076 | $ | 3,092 | ||||
Buildings | 6,621 | 6,828 | ||||||
Leasehold improvements | 2,276 | 2,118 | ||||||
Office furniture and equipment | 13,325 | 12,839 | ||||||
Computer software and hardware | 9,255 | 8,821 | ||||||
Demonstration and loaned equipment | 10,813 | 10,929 | ||||||
45,366 | 44,627 | |||||||
Accumulated depreciation | (27,152 | ) | (26,704 | ) | ||||
Total | $ | 18,214 | $ | 17,923 | ||||
Depreciation expense of property and equipment was approximately $1.0 million for the three months ended March 31, 2015 and approximately $1.2 million for the three months ended March 31, 2014. |
Reserve_for_Product_Warranties
Reserve for Product Warranties | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Product Warranties Disclosures [Abstract] | ||||||||
Reserve for Product Warranties | Reserve for Product Warranties | |||||||
We provide a warranty on all medical device products that is generally one year in length. We also sell extended service agreements on our medical device products that are generally over one year in length. Service for domestic customers is provided by Company-owned service centers that perform all service, repair, and calibration services. Service for international customers is provided by a combination of Company-owned facilities and vendors on a contract basis. | ||||||||
We have accrued a warranty reserve, included in accrued liabilities on the accompanying condensed consolidated balance sheets, for the expected future costs of servicing products during the initial warranty period. We base the liability on actual warranty costs incurred to service those products. Additions to the reserve are based on a combination of factors including the percentage of service department labor applied to warranty repairs, as well as actual service department costs, and other judgments, such as the degree to which the product incorporates new technology. The reserve is reduced as costs are incurred to honor existing warranty obligations. | ||||||||
The details of activity in the warranty reserve are as follows (in thousands): | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Balance, beginning of period | $ | 2,753 | $ | 3,143 | ||||
Additions charged to expense | 876 | 390 | ||||||
Reductions | (654 | ) | (522 | ) | ||||
Balance, end of period | $ | 2,975 | $ | 3,011 | ||||
ShareBased_Compensation
Share-Based Compensation | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||
Share-Based Compensation | Share-Based Compensation | |||||||
At March 31, 2015, we have two active share-based compensation plans, the 2011 Stock Awards Plan and the 2011 Employee Stock Purchase Plan. The terms of awards granted during the three months ended March 31, 2015 and our methods for determining grant-date fair value of the awards were consistent with those described in the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2014. | ||||||||
Detail of share-based compensation expense is as follows (in thousands): | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Cost of revenue | $ | 51 | $ | 28 | ||||
Marketing and selling | 363 | 235 | ||||||
Research and development | 217 | 146 | ||||||
General and administrative | 1,100 | 1,200 | ||||||
Total | $ | 1,731 | $ | 1,609 | ||||
As of March 31, 2015, unrecognized compensation expense related to the unvested portion of our stock options and other stock awards was approximately $11.7 million, which is expected to be recognized over a weighted average period of 2.1 years. |
Other_Income_Expense_net
Other Income (Expense), net | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Other Income and Expenses [Abstract] | ||||||||
Other Income (Expense), net | Other Income (Expense), net | |||||||
Other income (expense), net consists of (in thousands): | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Interest income | $ | 10 | $ | 145 | ||||
Interest expense | (1 | ) | (264 | ) | ||||
Foreign currency gain (loss) | (989 | ) | 149 | |||||
Other | 151 | 282 | ||||||
Total other income (expense), net | $ | (829 | ) | $ | 312 | |||
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes |
Provision for Income Tax Expense | |
Our effective tax rate (ETR) (provision for income taxes divided by pretax income) for the three months ended March 31, 2015 and 2014 was 31.3% and 30.4%, respectively. Our year-to-date results reflect the projected fiscal year ETR, as adjusted for the impact of any discrete items. Our ETR for the three months ended March 31, 2015 includes the discrete tax impact of the forgiveness of an intercompany loan between the U.S. parent company and its Argentinian subsidiary which increased our ETR by 3.7%. The discrete item recognized during the three months ended March 31, 2014 was not material to the ETR. The decrease in our ETR excluding the impact of discrete items, is due to forecasted shifts in the geographical mix of income. Our ETR for the three months ended March 31, 2015 and 2014 differed from statutory tax rates primarily because of profits taxed in foreign jurisdictions with lower tax rates than the statutory rate. | |
We recorded a net tax expense of $143,000 of unrecognized tax benefits for the three months ended March 31, 2015. Within the next twelve months, it is possible our uncertain tax benefit may change within a range of approximately zero to $800,000.Our tax returns remain open to examination as follows: U.S. Federal, 2011 through 2013, U.S. States 2010 through 2013 and significant foreign jurisdictions, 2010 through 2013. |
Restructuring_Reserves
Restructuring Reserves | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||
Restructuring Reserves | Restructuring Reserves | |||||||||
The Company has historically incurred an ongoing level of restructuring-type activities to maintain a competitive cost structure, including manufacturing and workforce optimization resulting from acquisitions. | ||||||||||
During the third quarter of 2014, the Company adopted a restructuring plan to reduce operating costs and close one of its North American distribution centers. The activities under this restructuring plan are expected to be completed during the second quarter of 2015. | ||||||||||
The balance of the restructuring reserve is included in accrued liabilities on the accompanying condensed consolidated balance sheets. Employee termination benefits are included as a part of restructuring expenses. | ||||||||||
Activity in the restructuring reserves for the three months ended March 31, 2015 is as follows (in thousands): | ||||||||||
Personnel Related | Facility Related | Total | ||||||||
Balance at December 31, 2014 | $ | 368 | $ | — | $ | 368 | ||||
Additions | 129 | 27 | 156 | |||||||
Reversals | — | — | — | |||||||
Payments | (116 | ) | (27 | ) | (143 | ) | ||||
Balance at March 31, 2015 | $ | 381 | $ | — | $ | 381 | ||||
Segment_Customer_and_Geographi
Segment, Customer and Geographic Information | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Segment Reporting [Abstract] | ||||||||
Segment, Customer and Geographic Information | Segment, Customer and Geographic Information | |||||||
We operate in one reportable segment in which we provide healthcare products used for the screening, detection, treatment, monitoring and tracking of common medical ailments. | ||||||||
Our end-user customer base includes hospitals, clinics, laboratories, physicians, nurses, audiologists, and governmental agencies. Most of our international sales are to distributors who resell our products to end users or sub-distributors. | ||||||||
Revenue and long-lived asset information are as follows (in thousands): | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Consolidated Revenue: | ||||||||
United States | $ | 54,564 | $ | 48,346 | ||||
Foreign countries | 34,831 | 37,278 | ||||||
Totals | $ | 89,395 | $ | 85,624 | ||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Revenue by End Market: | ||||||||
Neurology Products | ||||||||
Devices and Systems | $ | 40,115 | $ | 42,260 | ||||
Supplies | 14,878 | 14,226 | ||||||
Services | 1,294 | — | ||||||
Total Neurology Revenue | 56,287 | 56,486 | ||||||
Newborn Care Products | ||||||||
Devices and Systems | 18,382 | 15,379 | ||||||
Supplies | 12,361 | 12,276 | ||||||
Services | 2,365 | 1,483 | ||||||
Total Newborn Care Revenue | 33,108 | 29,138 | ||||||
Total Revenue | $ | 89,395 | $ | 85,624 | ||||
31-Mar-15 | 31-Dec-14 | |||||||
Property and equipment, net: | ||||||||
United States | $ | 6,357 | $ | 5,782 | ||||
Canada | 5,407 | 5,538 | ||||||
Argentina | 3,589 | 3,692 | ||||||
Other foreign countries | 2,861 | 2,911 | ||||||
Totals | $ | 18,214 | $ | 17,923 | ||||
During the three months ended March 31, 2015 and 2014, no single customer or foreign country contributed to more than 10% of revenue. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value Measurements | Fair Value Measurements | |||||||||||||||
ASC 820 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Fair value is defined under ASC 820 as the exit price associated with the sale of an asset or transfer of a liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes the following three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value: | ||||||||||||||||
Level 1 - Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. | ||||||||||||||||
Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets and liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||||||||||||||
Level 3 - Unobservable inputs that are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. | ||||||||||||||||
The Company does not have any financial assets or liabilities measured at fair value on a recurring basis. | ||||||||||||||||
The following financial instruments are not measured at fair value on the Company’s consolidated balance sheet as of March 31, 2015 and December 31, 2014, but require disclosure of their fair values: cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities. | ||||||||||||||||
In the third quarter of 2014 the Company listed its facility in Mundelein, Illinois for sale. This asset was measured at fair value less cost to sell as of September 30, 2014 based on market price and is classified as a Level 2 asset. The book value of this asset on June 30, 2014 was $3.6 million. We expensed $2.2 million during the third quarter 2014 for this impairment. As of March 31, 2015 we are carrying the asset as held for sale in other current assets on the balance sheet at a value of $1.4 million. | ||||||||||||||||
The Company also has contingent consideration associated with earn-outs from acquisitions. Contingent consideration liabilities are classified as Level 3 liabilities, as the Company uses unobservable inputs to value them, which is a probability-based income approach. Subsequent changes in the fair value of contingent consideration liabilities are recorded within the Company's income statement as an operating expense. | ||||||||||||||||
December 31, 2014 | Additions | Payments | March 31, 2015 | |||||||||||||
Liabilities: | ||||||||||||||||
Contingent consideration | $ | 812 | $ | 3,319 | $ | — | $ | 4,131 | ||||||||
Total | $ | 812 | $ | 3,319 | $ | — | $ | 4,131 | ||||||||
As presented in the table above, the significant unobservable inputs used in the fair value measurement of contingent consideration related to the acquisitions are annualized revenue forecasts developed by the Company’s management and the probability of achievement of those revenue forecasts. Significant increases (decreases) in these unobservable inputs in isolation would result in a significantly lower (higher) fair value measurement. |
Immaterial_Corrections_to_Prio
Immaterial Corrections to Prior Period Financial Statements | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Accounting Changes and Error Corrections [Abstract] | ||||||||
Immaterial Corrections to Prior Period Financial Statements | Immaterial Corrections to Prior Period Financial Statements | |||||||
Certain amounts previously reported in the consolidated statements of income and statements of cash flows for the three months ended March 31, 2014 have been restated to reflect the correction of an immaterial error as disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The error related to the amount of manufacturing labor and overhead applied to inventory. We believe the effects of the error are not material to our consolidated financial statements. | ||||||||
A summary of the effects of the correction of this error on our consolidated financial statements for the three months ended March 31, 2014 is presented in the table below (in thousands, except per share data): | ||||||||
31-Mar-14 | ||||||||
Previously Reported | Revised | |||||||
Statements of Operations | ||||||||
Cost of revenue | $ | 35,733 | $ | 33,981 | ||||
Intangibles amortization | — | 1,046 | ||||||
Gross profit | 49,891 | 50,597 | ||||||
Income from operations | 8,681 | 9,387 | ||||||
Income before provision for income tax | 8,993 | 9,699 | ||||||
Provision for income tax expense | 2,742 | 2,944 | ||||||
Net income | 6,251 | 6,755 | ||||||
Comprehensive income | 3,360 | 3,864 | ||||||
Net income per share, basic | $ | 0.2 | $ | 0.22 | ||||
Net income per share, diluted | $ | 0.19 | $ | 0.21 | ||||
Statements of Cash Flows | ||||||||
Net income | $ | 6,251 | $ | 6,755 | ||||
Changes in operating assets and liabilities, net of assets and liabilities acquired in acquisitions: | ||||||||
Inventories | 1,633 | 926 | ||||||
Accrued liabilities | (2,964 | ) | (2,761 | ) | ||||
Net cash provided by operating activities | $ | 5,684 | $ | 5,684 | ||||
Basis_Of_Presentation_Policies
Basis Of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recent Accounting Pronouncements | In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 requires revenue recognition to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 sets forth a new revenue recognition model that requires identifying the contract, identifying the performance obligations, determining the transaction price, allocating the transaction price to performance obligations and recognizing the revenue upon satisfaction of performance obligations. The Company is currently evaluating the impact of ASU 2014-09, which is effective for the Company in our fiscal year ending December 31, 2017. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Earnings Per Share | The components of basic and diluted EPS are as follows (in thousands): | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Net income | $ | 8,597 | $ | 6,755 | ||||
Weighted average common shares | 32,127 | 31,062 | ||||||
Dilutive effect of stock based awards | 970 | 1,123 | ||||||
Diluted Shares | 33,097 | 32,185 | ||||||
Basic earnings per share | $ | 0.27 | $ | 0.22 | ||||
Diluted earnings per share | $ | 0.26 | $ | 0.21 | ||||
Shares excluded from calculation of diluted EPS | — | 230 | ||||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Summary of Inventories | Inventories consist of the following (in thousands): | |||||||
31-Mar-15 | 31-Dec-14 | |||||||
Raw materials and subassemblies | $ | 21,438 | $ | 19,821 | ||||
Work in process | 1,864 | 1,808 | ||||||
Finished goods | 24,320 | 26,037 | ||||||
Total inventories | 47,622 | 47,666 | ||||||
Less: Non-current inventories | (6,251 | ) | (7,615 | ) | ||||
Inventories, current | $ | 41,371 | $ | 40,051 | ||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 3 Months Ended | |||||||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
Components of gross and net intangible asset balances | The following table summarizes the components of gross and net intangible asset balances (in thousands): | |||||||||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||||||||||||||||||||||
Gross | Accumulated | Accumulated | Net Book | Gross | Accumulated | Accumulated | Net Book | |||||||||||||||||||||||||
Carrying | Impairment | Amortization | Value | Carrying | Impairment | Amortization | Value | |||||||||||||||||||||||||
Amount | Amount | |||||||||||||||||||||||||||||||
Intangible assets with finite lives: | ||||||||||||||||||||||||||||||||
Technology | $ | 63,244 | — | $ | (28,714 | ) | $ | 34,530 | $ | 64,376 | — | $ | (28,195 | ) | $ | 36,181 | ||||||||||||||||
Customer related | 30,458 | — | (12,076 | ) | $ | 18,382 | 31,189 | — | (11,786 | ) | 19,403 | |||||||||||||||||||||
Internally developed software | 14,193 | — | (6,864 | ) | $ | 7,329 | 14,109 | — | (6,511 | ) | 7,598 | |||||||||||||||||||||
Patents | 2,655 | — | (2,086 | ) | $ | 569 | 2,794 | — | (2,154 | ) | 640 | |||||||||||||||||||||
Backlog | 717 | — | (717 | ) | $ | — | 719 | — | (719 | ) | — | |||||||||||||||||||||
Definite-lived intangible assets | 111,267 | (50,457 | ) | 60,810 | 113,187 | — | (49,365 | ) | 63,822 | |||||||||||||||||||||||
Intangible assets with indefinite lives: | ||||||||||||||||||||||||||||||||
Trade names | 31,950 | (3,329 | ) | — | $ | 28,621 | 32,443 | (3,504 | ) | — | 28,939 | |||||||||||||||||||||
Total intangible assets | $ | 143,217 | $ | (3,329 | ) | $ | (50,457 | ) | $ | 89,431 | $ | 145,630 | $ | (3,504 | ) | $ | (49,365 | ) | $ | 92,761 | ||||||||||||
Amortization expense related to intangible assets with definite lives | Amortization expense related to intangible assets with definite lives was as follows (in thousands): | |||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||||
Technology | $ | 960 | $ | 1,096 | ||||||||||||||||||||||||||||
Customer related | 605 | 647 | ||||||||||||||||||||||||||||||
Internally developed software | 354 | 288 | ||||||||||||||||||||||||||||||
Patents | 28 | 30 | ||||||||||||||||||||||||||||||
Total amortization | $ | 1,947 | $ | 2,061 | ||||||||||||||||||||||||||||
Expected amortization expense related to amortizable intangible assets | Expected amortization expense related to amortizable intangible assets is as follows (in thousands): | |||||||||||||||||||||||||||||||
Nine months ending December 31, 2015 | $ | 5,681 | ||||||||||||||||||||||||||||||
2016 | 6,917 | |||||||||||||||||||||||||||||||
2017 | 6,634 | |||||||||||||||||||||||||||||||
2018 | 6,410 | |||||||||||||||||||||||||||||||
2019 | 5,445 | |||||||||||||||||||||||||||||||
2020 | 4,531 | |||||||||||||||||||||||||||||||
Thereafter | 25,192 | |||||||||||||||||||||||||||||||
Total expected amortization expense | $ | 60,810 | ||||||||||||||||||||||||||||||
Goodwill_Tables
Goodwill (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Carrying amount of Goodwill | The carrying amount of goodwill and the changes in those balances are as follows (in thousands): | |||
31-Dec-14 | $ | 96,316 | ||
Acquisitions | 14,854 | |||
Foreign currency translation | (1,843 | ) | ||
31-Mar-15 | $ | 109,327 | ||
Property_and_Equipment_net_Tab
Property and Equipment, net (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property and Equipment net | Property and equipment, net consist of the following (in thousands): | |||||||
31-Mar-15 | 31-Dec-14 | |||||||
Land | $ | 3,076 | $ | 3,092 | ||||
Buildings | 6,621 | 6,828 | ||||||
Leasehold improvements | 2,276 | 2,118 | ||||||
Office furniture and equipment | 13,325 | 12,839 | ||||||
Computer software and hardware | 9,255 | 8,821 | ||||||
Demonstration and loaned equipment | 10,813 | 10,929 | ||||||
45,366 | 44,627 | |||||||
Accumulated depreciation | (27,152 | ) | (26,704 | ) | ||||
Total | $ | 18,214 | $ | 17,923 | ||||
Reserve_for_Product_Warranties1
Reserve for Product Warranties (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Product Warranties Disclosures [Abstract] | ||||||||
Reserve for Product Warranties | The details of activity in the warranty reserve are as follows (in thousands): | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Balance, beginning of period | $ | 2,753 | $ | 3,143 | ||||
Additions charged to expense | 876 | 390 | ||||||
Reductions | (654 | ) | (522 | ) | ||||
Balance, end of period | $ | 2,975 | $ | 3,011 | ||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||
Share-Based Compensation Expense | Detail of share-based compensation expense is as follows (in thousands): | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Cost of revenue | $ | 51 | $ | 28 | ||||
Marketing and selling | 363 | 235 | ||||||
Research and development | 217 | 146 | ||||||
General and administrative | 1,100 | 1,200 | ||||||
Total | $ | 1,731 | $ | 1,609 | ||||
Other_Income_Expense_net_Table
Other Income (Expense), net (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Other Income and Expenses [Abstract] | ||||||||
Other Income (Expense), net | Other income (expense), net consists of (in thousands): | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Interest income | $ | 10 | $ | 145 | ||||
Interest expense | (1 | ) | (264 | ) | ||||
Foreign currency gain (loss) | (989 | ) | 149 | |||||
Other | 151 | 282 | ||||||
Total other income (expense), net | $ | (829 | ) | $ | 312 | |||
Restructuring_Reserves_Tables
Restructuring Reserves (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||
Detail of Activity in the Restructuring Reserve | Activity in the restructuring reserves for the three months ended March 31, 2015 is as follows (in thousands): | |||||||||
Personnel Related | Facility Related | Total | ||||||||
Balance at December 31, 2014 | $ | 368 | $ | — | $ | 368 | ||||
Additions | 129 | 27 | 156 | |||||||
Reversals | — | — | — | |||||||
Payments | (116 | ) | (27 | ) | (143 | ) | ||||
Balance at March 31, 2015 | $ | 381 | $ | — | $ | 381 | ||||
Segment_Customer_and_Geographi1
Segment, Customer and Geographic Information (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Segment Reporting [Abstract] | ||||||||
Revenue and Long-lived Asset Information by Geographic Region | Revenue and long-lived asset information are as follows (in thousands): | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Consolidated Revenue: | ||||||||
United States | $ | 54,564 | $ | 48,346 | ||||
Foreign countries | 34,831 | 37,278 | ||||||
Totals | $ | 89,395 | $ | 85,624 | ||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Revenue by End Market: | ||||||||
Neurology Products | ||||||||
Devices and Systems | $ | 40,115 | $ | 42,260 | ||||
Supplies | 14,878 | 14,226 | ||||||
Services | 1,294 | — | ||||||
Total Neurology Revenue | 56,287 | 56,486 | ||||||
Newborn Care Products | ||||||||
Devices and Systems | 18,382 | 15,379 | ||||||
Supplies | 12,361 | 12,276 | ||||||
Services | 2,365 | 1,483 | ||||||
Total Newborn Care Revenue | 33,108 | 29,138 | ||||||
Total Revenue | $ | 89,395 | $ | 85,624 | ||||
31-Mar-15 | 31-Dec-14 | |||||||
Property and equipment, net: | ||||||||
United States | $ | 6,357 | $ | 5,782 | ||||
Canada | 5,407 | 5,538 | ||||||
Argentina | 3,589 | 3,692 | ||||||
Other foreign countries | 2,861 | 2,911 | ||||||
Totals | $ | 18,214 | $ | 17,923 | ||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Changes in fair value of contingent consideration | Subsequent changes in the fair value of contingent consideration liabilities are recorded within the Company's income statement as an operating expense. | |||||||||||||||
December 31, 2014 | Additions | Payments | March 31, 2015 | |||||||||||||
Liabilities: | ||||||||||||||||
Contingent consideration | $ | 812 | $ | 3,319 | $ | — | $ | 4,131 | ||||||||
Total | $ | 812 | $ | 3,319 | $ | — | $ | 4,131 | ||||||||
Immaterial_Corrections_to_Prio1
Immaterial Corrections to Prior Period Financial Statements (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Accounting Changes and Error Corrections [Abstract] | ||||||||
Immaterial Corrections to Prior Period Financial Statements | A summary of the effects of the correction of this error on our consolidated financial statements for the three months ended March 31, 2014 is presented in the table below (in thousands, except per share data): | |||||||
31-Mar-14 | ||||||||
Previously Reported | Revised | |||||||
Statements of Operations | ||||||||
Cost of revenue | $ | 35,733 | $ | 33,981 | ||||
Intangibles amortization | — | 1,046 | ||||||
Gross profit | 49,891 | 50,597 | ||||||
Income from operations | 8,681 | 9,387 | ||||||
Income before provision for income tax | 8,993 | 9,699 | ||||||
Provision for income tax expense | 2,742 | 2,944 | ||||||
Net income | 6,251 | 6,755 | ||||||
Comprehensive income | 3,360 | 3,864 | ||||||
Net income per share, basic | $ | 0.2 | $ | 0.22 | ||||
Net income per share, diluted | $ | 0.19 | $ | 0.21 | ||||
Statements of Cash Flows | ||||||||
Net income | $ | 6,251 | $ | 6,755 | ||||
Changes in operating assets and liabilities, net of assets and liabilities acquired in acquisitions: | ||||||||
Inventories | 1,633 | 926 | ||||||
Accrued liabilities | (2,964 | ) | (2,761 | ) | ||||
Net cash provided by operating activities | $ | 5,684 | $ | 5,684 | ||||
Business_Combinations_Details_
Business Combinations (Details Textual) (USD $) | 0 Months Ended | 3 Months Ended | |
In Millions, unless otherwise specified | Jan. 23, 2015 | Jan. 02, 2015 | Mar. 31, 2014 |
agreement | |||
Global Neuro-Diagnostics [Member] | |||
Business Combinations (Textual) [Abstract] | |||
Purchase price paid in cash to acquire entity | $11.40 | ||
Contingent consideration earn-out | 3.3 | ||
NicView [Member] | |||
Business Combinations (Textual) [Abstract] | |||
Purchase price paid in cash to acquire entity | 1.1 | ||
Newborn Hearing Screening Services [Member] | |||
Business Combinations (Textual) [Abstract] | |||
Purchase price paid in cash to acquire entity | 2.6 | ||
Contingent consideration earn-out | $0.80 | ||
Asset purchase agreements | 2 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share [Abstract] | ||
Net income | $8,597 | $6,755 |
Weighted average common shares | 32,127 | 31,062 |
Dilutive effect of stock based awards | 970 | 1,123 |
Diluted Shares | 33,097 | 32,185 |
Basic earnings per share (dollars per share) | $0.27 | $0.22 |
Diluted earnings per share (dollars per share) | $0.26 | $0.21 |
Shares excluded from calculation of diluted EPS | 0 | 230 |
Inventories_Details
Inventories (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Summary of Inventories | ||
Raw materials and subassemblies | $21,438 | $19,821 |
Work in process | 1,864 | 1,808 |
Finished goods | 24,320 | 26,037 |
Total inventories | 47,622 | 47,666 |
Less: Non-current inventories | -6,251 | -7,615 |
Inventories, current | $41,371 | $40,051 |
Inventories_Details_Textual
Inventories (Details Textual) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Inventories (Textual) [Abstract] | ||
Non-current Inventories | $6,251 | $7,615 |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount, Finite lives | $111,267 | $113,187 |
Accumulated Amortization | -50,457 | -49,365 |
Net Book Value, Finite lives | 60,810 | 63,822 |
Accumulated Impairment | -3,329 | -3,504 |
Gross Carrying Amount | 143,217 | 145,630 |
Net Book Value | 89,431 | 92,761 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount, Indefinite lives | 31,950 | 32,443 |
Accumulated Impairment | -3,329 | -3,504 |
Net Book Value, Indefinite lives | 28,621 | 28,939 |
Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount, Finite lives | 63,244 | 64,376 |
Accumulated Amortization | -28,714 | -28,195 |
Net Book Value, Finite lives | 34,530 | 36,181 |
Customer related [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount, Finite lives | 30,458 | 31,189 |
Accumulated Amortization | -12,076 | -11,786 |
Net Book Value, Finite lives | 18,382 | 19,403 |
Internally developed software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount, Finite lives | 14,193 | 14,109 |
Accumulated Amortization | -6,864 | -6,511 |
Net Book Value, Finite lives | 7,329 | 7,598 |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount, Finite lives | 2,655 | 2,794 |
Accumulated Amortization | -2,086 | -2,154 |
Net Book Value, Finite lives | 569 | 640 |
Backlog [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount, Finite lives | 717 | 719 |
Accumulated Amortization | -717 | -719 |
Net Book Value, Finite lives | $0 | $0 |
Intangible_Assets_Details_1
Intangible Assets (Details 1) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Amortization expense related to intangible assets with definite lives | ||
Total amortization | $1,947 | $2,061 |
Technology [Member] | ||
Amortization expense related to intangible assets with definite lives | ||
Total amortization | 960 | 1,096 |
Customer related [Member] | ||
Amortization expense related to intangible assets with definite lives | ||
Total amortization | 605 | 647 |
Internally developed software [Member] | ||
Amortization expense related to intangible assets with definite lives | ||
Total amortization | 354 | 288 |
Patents [Member] | ||
Amortization expense related to intangible assets with definite lives | ||
Total amortization | $28 | $30 |
Intangible_Assets_Details_2
Intangible Assets (Details 2) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Expected annual amortization expense related to amortizable intangible assets | ||
Nine months ending December 31, 2015 | $5,681 | |
2016 | 6,917 | |
2017 | 6,634 | |
2018 | 6,410 | |
2019 | 5,445 | |
2020 | 4,531 | |
Thereafter | 25,192 | |
Net Book Value, Finite lives | $60,810 | $63,822 |
Intangible_Assets_Details_Text
Intangible Assets (Details Textual) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Technology [Member] | |
Intangible Assets (Textual) [Abstract] | |
Weighted average life of intangible assets | 17 years |
Customer related [Member] | |
Intangible Assets (Textual) [Abstract] | |
Weighted average life of intangible assets | 13 years |
Internally developed software [Member] | |
Intangible Assets (Textual) [Abstract] | |
Weighted average life of intangible assets | 7 years |
Costs incurred for development of internal use computer software | 12 |
Costs incurred for development of software to be sold | 2.2 |
Patents [Member] | |
Intangible Assets (Textual) [Abstract] | |
Weighted average life of intangible assets | 13 years |
Goodwill_Details
Goodwill (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Carrying amount of goodwill | |
31-Dec-14 | $96,316 |
Acquisitions | 14,854 |
Foreign currency translation | -1,843 |
31-Mar-15 | $109,327 |
Property_and_Equipment_Net_Det
Property and Equipment, Net (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Property and equipment, net | ||
Property and Equipment, Gross | $45,366 | $44,627 |
Accumulated depreciation | -27,152 | -26,704 |
Total | 18,214 | 17,923 |
Land [Member] | ||
Property and equipment, net | ||
Property and Equipment, Gross | 3,076 | 3,092 |
Buildings [Member] | ||
Property and equipment, net | ||
Property and Equipment, Gross | 6,621 | 6,828 |
Leasehold improvements [Member] | ||
Property and equipment, net | ||
Property and Equipment, Gross | 2,276 | 2,118 |
Office furniture and equipment [Member] | ||
Property and equipment, net | ||
Property and Equipment, Gross | 13,325 | 12,839 |
Computer software and hardware [Member] | ||
Property and equipment, net | ||
Property and Equipment, Gross | 9,255 | 8,821 |
Demonstration and loaned equipment [Member] | ||
Property and equipment, net | ||
Property and Equipment, Gross | $10,813 | $10,929 |
Property_and_Equipment_Net_Det1
Property and Equipment, Net (Details Textual) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Property and Equipment, Net (Textual) [Abstract] | ||
Depreciation expense of property and equipment | $1 | $1.20 |
Reserve_for_Product_Warranties2
Reserve for Product Warranties (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Reserve for Product Warranties | ||
Balance, beginning of period | $2,753 | $3,143 |
Additions charged to expense | 876 | 390 |
Reductions | -654 | -522 |
Balance, end of period | $2,975 | $3,011 |
Reserve_for_Product_Warranties3
Reserve for Product Warranties (Details Textual) | 3 Months Ended |
Mar. 31, 2015 | |
Reserve for Product Warranties (Textual) [Abstract] | |
Product warranty period | 1 year |
Extended product warranty period | 1 year |
ShareBased_Compensation_Detail
Share-Based Compensation (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Share-based compensation expense | ||
Share-based compensation expense | $1,731 | $1,609 |
Cost of revenue [Member] | ||
Share-based compensation expense | ||
Share-based compensation expense | 51 | 28 |
Marketing and selling [Member] | ||
Share-based compensation expense | ||
Share-based compensation expense | 363 | 235 |
Research and development [Member] | ||
Share-based compensation expense | ||
Share-based compensation expense | 217 | 146 |
General and administrative [Member] | ||
Share-based compensation expense | ||
Share-based compensation expense | $1,100 | $1,200 |
ShareBased_Compensation_Detail1
Share-Based Compensation (Details Textual) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
plan | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Number of active share based compensation plans | 2 |
Unrecognized compensation expense related to unvested portion of stock options | $11.70 |
Weighted average period of recognition of unrecognized compensation expense | 2 years 1 month |
Other_Income_Expense_net_Detai
Other Income (Expense), net (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Other expense, net | ||
Interest income | $10 | $145 |
Interest expense | -1 | -264 |
Foreign currency gain (loss) | -989 | 149 |
Other | 151 | 282 |
Total other income (expense), net | ($829) | $312 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Income Tax Contingency [Line Items] | ||
Effective tax rate | 31.30% | 30.40% |
Discrete tax increase | 3.70% | |
Unrecognized tax expense | $143,000 | |
Minimum [Member] | ||
Income Tax Contingency [Line Items] | ||
Tax positions for which it is reasonably possible that the total amount could change | 0 | |
Maximum [Member] | ||
Income Tax Contingency [Line Items] | ||
Tax positions for which it is reasonably possible that the total amount could change | $800,000 |
Restructuring_Reserves_Details
Restructuring Reserves (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Detail of activity in the restructuring reserve | ||
Beginning balance | $368 | |
Additions | 156 | 538 |
Reversals | 0 | |
Payments | -143 | |
Ending balance | 381 | |
Personnel Related [Member] | ||
Detail of activity in the restructuring reserve | ||
Beginning balance | 368 | |
Additions | 129 | |
Reversals | 0 | |
Payments | -116 | |
Ending balance | 381 | |
Facility Related [Member] | ||
Detail of activity in the restructuring reserve | ||
Beginning balance | 0 | |
Additions | 27 | |
Reversals | 0 | |
Payments | -27 | |
Ending balance | $0 |
Segment_Customer_and_Geographi2
Segment, Customer and Geographic Information (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Consolidated Revenue: | |||
Revenue | $89,395 | $85,624 | |
Revenue By End Market: | |||
Total revenue | 89,395 | 85,624 | |
Property and equipment, net: | |||
Property and equipment, net | 18,214 | 17,923 | |
United States [Member] | |||
Consolidated Revenue: | |||
Revenue | 54,564 | 48,346 | |
Property and equipment, net: | |||
Property and equipment, net | 6,357 | 5,782 | |
Canada [Member] | |||
Property and equipment, net: | |||
Property and equipment, net | 5,407 | 5,538 | |
Argentina [Member] | |||
Property and equipment, net: | |||
Property and equipment, net | 3,589 | 3,692 | |
Foreign Countries [Member] | |||
Consolidated Revenue: | |||
Revenue | 34,831 | 37,278 | |
Property and equipment, net: | |||
Property and equipment, net | 2,861 | 2,911 | |
Neurology Products [Member] | |||
Revenue By End Market: | |||
Total revenue | 56,287 | 56,486 | |
Neurology Products [Member] | Devices and Systems [Member] | |||
Revenue By End Market: | |||
Total revenue | 40,115 | 42,260 | |
Neurology Products [Member] | Supplies [Member] | |||
Revenue By End Market: | |||
Total revenue | 14,878 | 14,226 | |
Neurology Products [Member] | Services [Member] | |||
Revenue By End Market: | |||
Total revenue | 1,294 | 0 | |
Newborn Care Products [Member] | |||
Revenue By End Market: | |||
Total revenue | 33,108 | 29,138 | |
Newborn Care Products [Member] | Devices and Systems [Member] | |||
Revenue By End Market: | |||
Total revenue | 18,382 | 15,379 | |
Newborn Care Products [Member] | Supplies [Member] | |||
Revenue By End Market: | |||
Total revenue | 12,361 | 12,276 | |
Newborn Care Products [Member] | Services [Member] | |||
Revenue By End Market: | |||
Total revenue | $2,365 | $1,483 |
Segment_Customer_and_Geographi3
Segment, Customer and Geographic Information (Details Textual) | 3 Months Ended |
Mar. 31, 2015 | |
segment | |
countries | |
customer | |
Segment Reporting [Abstract] | |
Number of reportable segment | 1 |
Number of major customers | 0 |
Number of major countries | 0 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details Textual) (Mundelein Facility [Member], Fair Value, Level 2 [Member], USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Mar. 31, 2015 | Jun. 30, 2014 |
Mundelein Facility [Member] | Fair Value, Level 2 [Member] | |||
Long Lived Assets Held-for-sale [Line Items] | |||
Asset held-for-sale book value | $3.60 | ||
Loss on disposal of property and equipment | 2.2 | ||
Asset held-for-sale at fair value | $1.40 |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Contingent consideration, beginning balance | $4,131 | $812 |
Additions | 3,319 | |
Payments | 0 | |
Contingent consideration, ending balance | 4,131 | 812 |
Contingent Consideration [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Contingent consideration, beginning balance | 4,131 | 812 |
Additions | 3,319 | |
Payments | 0 | |
Contingent consideration, ending balance | $4,131 | $812 |
Immaterial_Corrections_to_Prio2
Immaterial Corrections to Prior Period Financial Statements (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Cost of revenue | $35,105 | $33,981 |
Intangibles amortization | 682 | 1,046 |
Gross profit | 53,608 | 50,597 |
Income from operations | 13,346 | 9,387 |
Income before provision for income tax | 12,517 | 9,699 |
Provision for income tax expense | 3,920 | 2,944 |
Net income | 8,597 | 6,755 |
Comprehensive income | 3,518 | 3,864 |
Basic (dollars per share) | $0.27 | $0.22 |
Diluted (dollars per share) | $0.26 | $0.21 |
Statement of Cash Flows [Abstract] | ||
Inventories | -1,243 | 926 |
Accrued liabilities | -2,492 | -2,761 |
Net cash provided by operating activities | 13,812 | 5,684 |
Scenario, Previously Reported [Member] | ||
Income Statement [Abstract] | ||
Cost of revenue | 35,733 | |
Intangibles amortization | 0 | |
Gross profit | 49,891 | |
Income from operations | 8,681 | |
Income before provision for income tax | 8,993 | |
Provision for income tax expense | 2,742 | |
Net income | 6,251 | 6,251 |
Comprehensive income | 3,360 | |
Basic (dollars per share) | $0.20 | |
Diluted (dollars per share) | $0.19 | |
Statement of Cash Flows [Abstract] | ||
Inventories | 1,633 | |
Accrued liabilities | -2,964 | |
Net cash provided by operating activities | $5,684 |