Natus Medical (NTUS) 10-Q 4 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	Apr. 29, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	NATUS MEDICAL INC
Entity Central Index Key	878,526
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		33,115,686

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 81,285	$ 82,469
Accounts receivable, net of allowance for doubtful accounts of $4,933 in 2016 and $4,686 in 2015	90,013	99,080
Inventories	45,691	48,572
Prepaid expenses and other current assets	11,360	11,235
Total current assets	228,349	241,356
Property and equipment, net	17,624	16,967
Intangible assets, net	83,492	86,536
Goodwill	112,921	107,466
Deferred Tax Assets, Net, Noncurrent	12,695	12,782
Other assets	17,649	14,389
Total assets	472,730	479,496
Current liabilities:
Accounts payable	19,418	23,660
Accrued liabilities	36,911	42,137
Deferred revenue	11,460	11,311
Total current liabilities	67,789	77,108
Long-term liabilities:
Other liabilities	8,708	7,781
Deferred income tax	3,881	3,897
Total liabilities	80,378	88,786
Stockholders’ equity:
Common Stock, $0.001 par value, 120,000,000 shares authorized; shares issued and outstanding 33,092,026 in 2016 and 33,153,500 in 2015	316,189	323,745
Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued and outstanding in 2016 and 2015	0	0
Retained earnings	115,352	106,814
Accumulated other comprehensive loss	(39,189)	(39,849)
Total stockholders’ equity	392,352	390,710
Total liabilities and stockholders’ equity	$ 472,730	$ 479,496

Consolidated Balance Sheets (un

Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 4,933	$ 4,686
Common Stock, par value	$ 0.001	$ 0.001
Common Stock, shares authorized	120,000,000	120,000,000
Common Stock, shares issued	33,092,026	33,153,500
Common Stock, shares outstanding	33,092,026	33,153,500
Preferred Stock, par value	$ 0.001	$ 0.001
Preferred Stock, shares authorized	10,000,000	10,000,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income and Comprehensive Income (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Statement [Abstract]
Revenue	$ 87,329	$ 89,395
Cost of revenue	32,469	35,105
Intangibles amortization	601	682
Gross profit	54,259
Operating expenses:
Marketing and selling	20,596	20,742
Research and development	7,802	6,857
General and administrative	12,481	11,552
Intangibles amortization	2,134	955
Restructuring	35	156
Total operating expenses	43,048	40,262
Income from operations	11,211
Other income (expense), net	456	(829)
Income before provision for income tax	11,667	12,517
Provision for income tax expense	3,129	3,920
Net income	8,538	8,597
Foreign currency translation adjustment	660	(5,079)
Comprehensive income	$ 9,198	$ 3,518
Earnings per share:
Basic (dollars per share)	$ 0.26	$ 0.27
Diluted (dollars per share)	$ 0.26	$ 0.26
Weighted average shares used in the calculation of earnings per share:
Basic (in shares)	32,606	32,127
Diluted (in shares)	33,222	33,097

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Operating activities:
Net income	$ 8,538	$ 8,597
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for losses on accounts receivable	352	276
Excess tax benefit on the exercise of stock options	0	(1,054)
Depreciation and amortization	4,223	2,983
Loss on disposal of property and equipment	15	0
Warranty reserve	929	876
Share-based compensation	2,901	1,731
Changes in operating assets and liabilities:
Accounts receivable	10,266	413
Inventories	(903)	(1,243)
Prepaid expenses and other assets	(15)	778
Accounts payable	(3,790)	1,079
Accrued liabilities	(3,688)	(2,492)
Deferred revenue	446	159
Deferred income tax	108	1,709
Net cash provided by operating activities	19,382	13,812
Liabilities acquired in acquisitions
Acquisition of businesses, net of cash acquired	(5,649)	(12,078)
Purchases of property and equipment	(1,921)	(1,399)
Purchase of intangible assets	2	0
Net cash used in investing activities	(7,568)	(13,477)
Purchase of intangible assets
Proceeds from stock option exercises and Employee Stock Purchase Program purchases	623	1,319
Excess tax benefit on the exercise of stock options	0	1,054
Repurchase of common stock	(9,063)	(1,312)
Taxes paid related to net share settlement of equity awards	(2,017)	(460)
Contingent consideration earn-out	(1,284)	0
Proceeds from Short-term Debt	6,000	0
Payments on borrowings	(6,000)	0
Net cash used in financing activities	(11,741)	601
Exchange rate changes effect on cash and cash equivalents	(1,257)	(495)
Net increase in cash and cash equivalents	(1,184)	441
Cash and cash equivalents, beginning of period	82,469	66,558
Cash and cash equivalents, end of period	81,285	66,999
Cash and cash equivalents, end of period
Cash paid for interest	10	2
Cash paid for income taxes	3,950	149
Cash paid for income taxes
Property and equipment included in accounts payable	226	172
Inventory transferred to property and equipment	$ 209	$ 377

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2016
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, 2015 . 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, 2015 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, 2015 . We have made certain reclassifications to the prior period to conform to current period presentation. Operating results for the three months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 . 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 original effective date for ASU 2014-09 would have required the Company to adopt beginning in its first quarter of 2017. In July 2015, the FASB voted to amend ASU 2014-09 by approving a one-year deferral of the effective date as well as providing the option to early adopt the standard on the original effective date. Accordingly, the Company may adopt the standard in either its first quarter of 2017 or 2018. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company is currently evaluating the timing of its adoption and the impact of adopting the new revenue standard on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . This standard requires a lessee to recognize the lease assets and lease liabilities arising from operating leases in the statement of financial position. Qualitative along with specific quantitative disclosures are required by lessees and lessors to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 including interim periods within those fiscal years. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvement to Employee Share-Based Payment Accounting . The new standard contains several amendments that will simplify the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, statutory tax withholding requirements, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The changes in the new standard eliminate the accounting for excess tax benefits to be recognized in additional paid-in capital and tax deficiencies recognized either in the income tax provision or in additional paid-in capital. The Company elected early adoption of ASU 2016-09 in the first quarter of 2016 which will be applied using a modified retrospective approach. For the three months ended March 31, 2016, we recognized all excess tax benefits and tax deficiencies as income tax expense or benefit as a discrete event. An income tax benefit of approximately $0.8 million was recognized in the quarterly period ended March 31, 2016 as a result of the adoption of ASU 2016-09. There will be no change to retained earnings with respect to excess tax benefits, as this is not applicable to the Company. The treatment of forfeitures has not changed as we are electing to continue our current process of estimating the number of forfeitures. As such, this has no cumulative effect on retained earnings. With the early adoption of 2016-09, we have elected to present the cash flow statement on a prospective transition method and no prior periods have been adjusted.

Business Combinations

Business Combinations	3 Months Ended
	Mar. 31, 2016
Business Combinations [Abstract]
Business Combinations	Business Combinations NeuroQuest On March 2, 2016, we acquired NeuroQuest, LLC (“NeuroQuest”) through an asset purchase. NeuroQuest compliments our Global Neuro-Diagnostics ("GND") and Monarch Medical Diagnostics, LLC ("Monarch") acquisitions which offer patients a convenient way to complete routine electroencephalography ("EEG") and video electromyography ("EMG") testing. The cash consideration for NeuroQuest was $4.6 million . The purchase agreement also included an asset consideration holdback of $0.5 million . Pro forma financial information for the NeuroQuest acquisition is not presented as it is not considered material and the purchase accounting is not yet completed. Monarch We acquired Monarch through an asset purchase on November 13, 2015. Monarch's service compliments our GND acquisition which offers patients a convenient way to complete routine diagnostic EEG and EMG testing. The service also provides comprehensive reporting and support to the physician. The cash consideration for Monarch was $2.7 million . The purchase agreement also included a contingent consideration holdback of $1.0 million which we paid on January 11, 2016. Pro forma financial information for the Monarch acquisition is not presented as it is not considered material. Global Neuro-Diagnostics We acquired GND through an equity purchase on January 23, 2015. GND's service offers patients a convenient way to complete routine diagnostic EEG and EMG 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 we estimate to be $3.8 million . This earn-out is contingent upon GND achieving certain revenue milestones from 2015 to 2017. Pro forma financial information for the GND acquisition is not presented as it is not considered material. NicView On January 2, 2015, we 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. The asset purchase agreement included an earn-out condition of $1.3 million that was contingent upon orders received and installed by February 28, 2016. The earn-out was paid on March 28, 2016. Pro forma financial information for the NicView acquisition is not presented as it is not considered material.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share The components of basic and diluted EPS are as follows (in thousands, except per share amounts): Three Months Ended 2016 2015 Net income $ 8,538 $ 8,597 Weighted average common shares 32,606 32,127 Dilutive effect of stock based awards 616 970 Diluted Shares 33,222 33,097 Basic earnings per share $ 0.26 $ 0.27 Diluted earnings per share $ 0.26 $ 0.26 Shares excluded from calculation of diluted EPS 179 —

Inventories

Inventories	3 Months Ended
	Mar. 31, 2016
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories consist of the following (in thousands): March 31, 2016 December 31, 2015 Raw materials and subassemblies $ 23,225 $ 19,041 Work in process 1,773 1,343 Finished goods 32,204 36,149 Total inventories 57,202 56,533 Less: Non-current inventories (11,511 ) (7,961 ) Inventories, current $ 45,691 $ 48,572 At March 31, 2016 and December 31, 2015 , we have classified $11.5 million and $8.0 million , respectively, of inventories as other assets. We expect that we will not use this inventory within the next twelve months. This inventory consists primarily of last time buy items from our suppliers, service components used to repair products pursuant to warranty obligations and extended service contracts, including service components for products we are not currently selling and inventory that we purchased in bulk quantities. Management believes that these inventories will be utilized for their intended purpose.

Intangible Assets

Intangible Assets	3 Months Ended
	Mar. 31, 2016
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): March 31, 2016 December 31, 2015 Gross Accumulated Accumulated Net Book Gross Accumulated Accumulated Net Book Intangible assets with definite lives: Technology $ 63,768 $ — $ (32,557 ) $ 31,211 $ 63,668 $ — $ (31,600 ) $ 32,068 Customer related 35,661 — (15,213 ) 20,448 35,529 — (14,352 ) 21,177 Trade names 31,951 (3,394 ) (4,079 ) 24,478 31,837 (3,340 ) (3,052 ) 25,445 Internally developed software 15,526 — (8,642 ) 6,884 15,513 — (8,155 ) 7,358 Patents 2,707 — (2,236 ) 471 2,663 — (2,175 ) 488 Backlog 718 — (718 ) — 717 — (717 ) — Definite-lived intangible assets $ 150,331 $ (3,394 ) $ (63,445 ) $ 83,492 $ 149,927 $ (3,340 ) $ (60,051 ) $ 86,536 Finite-lived intangible assets are amortized over their useful lives, which are 5 to 20 years for technology, 4 to 16 years for customer related intangibles, 4 to 10 years for internally developed software, 7 years for trade names, and 10 to 15 years for patents. Internally developed software consists of $13.3 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 2016 2015 Technology $ 853 $ 960 Customer related 794 605 Trade names 1,029 — Internally developed software 476 354 Patents 28 28 Total amortization $ 3,180 $ 1,947 Expected amortization expense related to amortizable intangible assets is as follows (in thousands): Nine months ending December 31, 2016 $ 9,405 2017 12,283 2018 12,058 2019 10,908 2020 8,745 2021 8,007 Thereafter 22,086 Total expected amortization expense $ 83,492

Goodwill

Goodwill	3 Months Ended
	Mar. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	Goodwill The carrying amount of goodwill and the changes in the balance are as follows (in thousands): December 31, 2015 $ 107,466 Acquisitions 5,149 Foreign currency translation 306 March 31, 2016 $ 112,921

Property and Equipment, net

Property and Equipment, net	3 Months Ended
	Mar. 31, 2016
Property, Plant and Equipment [Abstract]
Property and Equipment, net	Property and Equipment, net Property and equipment, net consist of the following (in thousands): March 31, 2016 December 31, 2015 Land $ 2,879 $ 2,918 Buildings 5,454 5,662 Leasehold improvements 2,353 2,345 Office furniture and equipment 13,921 13,866 Computer software and hardware 12,125 10,488 Demonstration and loaned equipment 11,439 11,216 48,171 46,495 Accumulated depreciation (30,547 ) (29,528 ) Total $ 17,624 $ 16,967 Depreciation expense of property and equipment was approximately $1.0 million for the three months ended March 31, 2016 , and approximately $1.0 million for the three months ended March 31, 2015 .

Reserve for Product Warranties

Reserve for Product Warranties	3 Months Ended
	Mar. 31, 2016
Product Warranties Disclosures [Abstract]
Reserve for Product Warranties	Reserve for Product Warranties We provide a warranty with our products that is generally one year in length and in some cases, regulations may require us to provide repair or remediation beyond our typical warranty period. If any of our products contain defects, we may be required to incur additional repair and remediation costs. 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. A warranty reserve is included in accrued liabilities for the expected future costs of servicing products. Additions to the reserve are based on management’s best estimate of probable liability. We consider a combination of factors including material and labor costs, regulatory requirements, and other judgments in determining the amount of the reserve. The reserve is reduced as costs are incurred to honor existing warranty and regulatory obligations. As of March 31, 2016 we had accrued $6.6 million of estimated costs to bring certain NeoBLUE® phototherapy products into U.S. regulatory compliance. Our estimate of these costs is primarily based upon the number of units outstanding that may require repair, costs associated with shipping and repairing the product, and the assumption that the FDA will approve our plan for compliance. We expect that costs associated with bringing the products back into compliance will not be incurred until the third quarter of 2016. The details of activity in the warranty reserve are as follows (in thousands): Three Months Ended 2016 2015 Balance, beginning of period $ 10,386 $ 2,753 Additions charged to expense 929 876 Reductions (738 ) (654 ) Balance, end of period $ 10,577 $ 2,975 The estimates we use in projecting future product warranty costs may prove to be incorrect. Any future determination that our product warranty reserves are understated could result in increases to our cost of sales and reductions in our operating profits and results of operations.

Share-Based Compensation

Share-Based Compensation	3 Months Ended
	Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-Based Compensation	Share-Based Compensation At March 31, 2016 , 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, 2016 and our methods for determining grant-date fair value of the awards are consistent with those described in the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2015 . Details of share-based compensation expense are as follows (in thousands): Three Months Ended 2016 2015 Cost of revenue $ 76 $ 51 Marketing and selling 279 363 Research and development 513 217 General and administrative 2,033 1,100 Total $ 2,901 $ 1,731 As of March 31, 2016 , unrecognized compensation expense related to the unvested portion of our stock options and other stock awards was approximately $15.1 million , which is expected to be recognized over a weighted average period of 1.3 years .

Other Income (Expense), net

Other Income (Expense), net	3 Months Ended
	Mar. 31, 2016
Other Income and Expenses [Abstract]
Other Income (Expense), net	Other Income (Expense), net Other income (expense), net consists of (in thousands): Three Months Ended 2016 2015 Interest income $ 8 $ 10 Interest expense (31 ) (1 ) Foreign currency gain (loss) 450 (989 ) Other 29 151 Total other income (expense), net $ 456 $ (829 )

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Provision for Income Tax Expense We recorded provisions for income tax of $3.1 million and $3.9 million for the three months ended March 31, 2016 and 2015 , respectively. Our effective tax rate was 26.8% and 31.3% for the three months ended March 31, 2016 and 2015 , respectively. Our year-to-date results reflect the projected fiscal year 2016 effective tax rate as adjusted for the impact of any quarterly discrete events. Discrete items for the three months ended March 31, 2016 include the tax rate impact from adoption of ASU 2016-09, Compensation - Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting and recording certain tax reserves. The impact from the adoption of ASU 2016-09 decreased our quarterly effective tax rate by 6.8% . Independent from the adoption of ASU 2016-09, the tax reserve we recorded in this quarter increased our quarterly tax rate by 4.7% . Discrete items recorded during the three months ended March 31, 2015 increased the quarterly tax rate by 3.6% . The decrease in our quarterly effective tax rate, excluding the impact of discrete items for the three months ended March 31, 2016 , compared with the three months ended March 31, 2015 is primarily attributable to forecasted shifts in the geographical mix of income. We recorded $0.6 million net tax expense of unrecognized tax benefits for the three months ended March 31, 2016 . Within the next twelve months, it is possible our uncertain tax benefit may change within a range of approximately zero to $0.5 million . Our tax returns remain open to examinations as follows: U.S. Federal, 2012 through 2015, U.S. States 2011 through 2015 and significant foreign jurisdictions 2012 through 2015.

Restructuring Reserves

Restructuring Reserves	3 Months Ended
	Mar. 31, 2016
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. 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, 2016 is as follows (in thousands): Personnel Related Facility Related Total Balance at December 31, 2015 $ 1,676 $ — $ 1,676 Additions 140 232 372 Reversals (337 ) — (337 ) Payments (239 ) (232 ) (471 ) Balance at March 31, 2016 $ 1,240 $ — $ 1,240

Segment, Customer and Geographi

Segment, Customer and Geographic Information	3 Months Ended
	Mar. 31, 2016
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 and services 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 2016 2015 Consolidated Revenue: United States $ 56,899 $ 54,564 Foreign countries 30,430 34,831 Totals $ 87,329 $ 89,395 Three Months Ended 2016 2015 Revenue by End Market: Neurology Products Devices and Systems $ 38,876 $ 40,108 Supplies 15,355 14,876 Services 2,441 1,287 Total Neurology Revenue 56,672 56,271 Newborn Care Products Devices and Systems 13,541 18,364 Supplies 11,614 12,388 Services 5,502 2,372 Total Newborn Care Revenue 30,657 33,124 Total Revenue $ 87,329 $ 89,395 March 31, 2016 December 31, 2015 Property and equipment, net: United States $ 7,032 $ 6,664 Canada 5,082 5,165 Argentina 2,110 2,361 Ireland 1,919 1,651 Other foreign countries 1,481 1,126 Totals $ 17,624 $ 16,967 During the three months ended March 31, 2016 and 2015 , no single customer or foreign country contributed to more than 10% of revenue.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2016
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, 2016 and December 31, 2015 , but require disclosure of their fair values: cash and cash equivalents, accounts receivable, and accounts payable. The carrying value of these financial instruments approximates fair values because of their relatively short maturity. 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 of 2014 for this impairment. As of March 31, 2016 we are carrying the asset as held for sale in other current assets on the accompanying condensed consolidated 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. Contingent considerations are classified as accrued liabilities on our condensed consolidated balance sheet. Subsequent changes in the fair value of contingent consideration liabilities are recorded within the Company's income statement as an operating expense. December 31, 2015 Additions Payments Adjustments March 31, 2016 Liabilities: Contingent consideration $ 6,209 $ 500 $ (2,284 ) $ (102 ) $ 4,323 Total $ 6,209 $ 500 $ (2,284 ) $ (102 ) $ 4,323 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.

Basis Of Presentation (Policies

Basis Of Presentation (Policies)	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Recent Accounting Pronouncements	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 original effective date for ASU 2014-09 would have required the Company to adopt beginning in its first quarter of 2017. In July 2015, the FASB voted to amend ASU 2014-09 by approving a one-year deferral of the effective date as well as providing the option to early adopt the standard on the original effective date. Accordingly, the Company may adopt the standard in either its first quarter of 2017 or 2018. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company is currently evaluating the timing of its adoption and the impact of adopting the new revenue standard on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . This standard requires a lessee to recognize the lease assets and lease liabilities arising from operating leases in the statement of financial position. Qualitative along with specific quantitative disclosures are required by lessees and lessors to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 including interim periods within those fiscal years. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvement to Employee Share-Based Payment Accounting . The new standard contains several amendments that will simplify the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, statutory tax withholding requirements, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The changes in the new standard eliminate the accounting for excess tax benefits to be recognized in additional paid-in capital and tax deficiencies recognized either in the income tax provision or in additional paid-in capital. The Company elected early adoption of ASU 2016-09 in the first quarter of 2016 which will be applied using a modified retrospective approach. For the three months ended March 31, 2016, we recognized all excess tax benefits and tax deficiencies as income tax expense or benefit as a discrete event. An income tax benefit of approximately $0.8 million was recognized in the quarterly period ended March 31, 2016 as a result of the adoption of ASU 2016-09. There will be no change to retained earnings with respect to excess tax benefits, as this is not applicable to the Company. The treatment of forfeitures has not changed as we are electing to continue our current process of estimating the number of forfeitures. As such, this has no cumulative effect on retained earnings. With the early adoption of 2016-09, we have elected to present the cash flow statement on a prospective transition method and no prior periods have been adjusted.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Earnings Per Share	The components of basic and diluted EPS are as follows (in thousands, except per share amounts): Three Months Ended 2016 2015 Net income $ 8,538 $ 8,597 Weighted average common shares 32,606 32,127 Dilutive effect of stock based awards 616 970 Diluted Shares 33,222 33,097 Basic earnings per share $ 0.26 $ 0.27 Diluted earnings per share $ 0.26 $ 0.26 Shares excluded from calculation of diluted EPS 179 —

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2016
Inventory Disclosure [Abstract]
Summary of Inventories	Inventories consist of the following (in thousands): March 31, 2016 December 31, 2015 Raw materials and subassemblies $ 23,225 $ 19,041 Work in process 1,773 1,343 Finished goods 32,204 36,149 Total inventories 57,202 56,533 Less: Non-current inventories (11,511 ) (7,961 ) Inventories, current $ 45,691 $ 48,572

Intangible Assets (Tables)

Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense related to intangible assets with definite lives	The following table summarizes the components of gross and net intangible asset balances (in thousands): March 31, 2016 December 31, 2015 Gross Accumulated Accumulated Net Book Gross Accumulated Accumulated Net Book Intangible assets with definite lives: Technology $ 63,768 $ — $ (32,557 ) $ 31,211 $ 63,668 $ — $ (31,600 ) $ 32,068 Customer related 35,661 — (15,213 ) 20,448 35,529 — (14,352 ) 21,177 Trade names 31,951 (3,394 ) (4,079 ) 24,478 31,837 (3,340 ) (3,052 ) 25,445 Internally developed software 15,526 — (8,642 ) 6,884 15,513 — (8,155 ) 7,358 Patents 2,707 — (2,236 ) 471 2,663 — (2,175 ) 488 Backlog 718 — (718 ) — 717 — (717 ) — Definite-lived intangible assets $ 150,331 $ (3,394 ) $ (63,445 ) $ 83,492 $ 149,927 $ (3,340 ) $ (60,051 ) $ 86,536 Amortization expense related to intangible assets with definite lives was as follows (in thousands): Three Months Ended 2016 2015 Technology $ 853 $ 960 Customer related 794 605 Trade names 1,029 — Internally developed software 476 354 Patents 28 28 Total amortization $ 3,180 $ 1,947
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, 2016 $ 9,405 2017 12,283 2018 12,058 2019 10,908 2020 8,745 2021 8,007 Thereafter 22,086 Total expected amortization expense $ 83,492

Goodwill (Tables)

Goodwill (Tables)	3 Months Ended
	Mar. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Carrying amount of Goodwill	The carrying amount of goodwill and the changes in the balance are as follows (in thousands): December 31, 2015 $ 107,466 Acquisitions 5,149 Foreign currency translation 306 March 31, 2016 $ 112,921

Property and Equipment, net (Ta

Property and Equipment, net (Tables)	3 Months Ended
	Mar. 31, 2016
Property, Plant and Equipment [Abstract]
Property and Equipment net	Property and equipment, net consist of the following (in thousands): March 31, 2016 December 31, 2015 Land $ 2,879 $ 2,918 Buildings 5,454 5,662 Leasehold improvements 2,353 2,345 Office furniture and equipment 13,921 13,866 Computer software and hardware 12,125 10,488 Demonstration and loaned equipment 11,439 11,216 48,171 46,495 Accumulated depreciation (30,547 ) (29,528 ) Total $ 17,624 $ 16,967

Reserve for Product Warranties

Reserve for Product Warranties (Tables)	3 Months Ended
	Mar. 31, 2016
Product Warranties Disclosures [Abstract]
Reserve for Product Warranties	The details of activity in the warranty reserve are as follows (in thousands): Three Months Ended 2016 2015 Balance, beginning of period $ 10,386 $ 2,753 Additions charged to expense 929 876 Reductions (738 ) (654 ) Balance, end of period $ 10,577 $ 2,975 The estimates we use in projecting future product warranty costs may prove to be incorrect. Any future determination that our product warranty reserves are understated could result in increases to our cost of sales and reductions in our operating profits and results of operations.

Share-Based Compensation (Table

Share-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-Based Compensation Expense	Details of share-based compensation expense are as follows (in thousands): Three Months Ended 2016 2015 Cost of revenue $ 76 $ 51 Marketing and selling 279 363 Research and development 513 217 General and administrative 2,033 1,100 Total $ 2,901 $ 1,731

Other Income (Expense), net (Ta

Other Income (Expense), net (Tables)	3 Months Ended
	Mar. 31, 2016
Other Income and Expenses [Abstract]
Other Income (Expense), net	Other income (expense), net consists of (in thousands): Three Months Ended 2016 2015 Interest income $ 8 $ 10 Interest expense (31 ) (1 ) Foreign currency gain (loss) 450 (989 ) Other 29 151 Total other income (expense), net $ 456 $ (829 )

Restructuring Reserves (Tables)

Restructuring Reserves (Tables)	3 Months Ended
	Mar. 31, 2016
Restructuring and Related Activities [Abstract]
Detail of Activity in the Restructuring Reserve	Activity in the restructuring reserves for the three months ended March 31, 2016 is as follows (in thousands): Personnel Related Facility Related Total Balance at December 31, 2015 $ 1,676 $ — $ 1,676 Additions 140 232 372 Reversals (337 ) — (337 ) Payments (239 ) (232 ) (471 ) Balance at March 31, 2016 $ 1,240 $ — $ 1,240

Segment, Customer and Geograp30

Segment, Customer and Geographic Information (Tables)	3 Months Ended
	Mar. 31, 2016
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 2016 2015 Consolidated Revenue: United States $ 56,899 $ 54,564 Foreign countries 30,430 34,831 Totals $ 87,329 $ 89,395 Three Months Ended 2016 2015 Revenue by End Market: Neurology Products Devices and Systems $ 38,876 $ 40,108 Supplies 15,355 14,876 Services 2,441 1,287 Total Neurology Revenue 56,672 56,271 Newborn Care Products Devices and Systems 13,541 18,364 Supplies 11,614 12,388 Services 5,502 2,372 Total Newborn Care Revenue 30,657 33,124 Total Revenue $ 87,329 $ 89,395 March 31, 2016 December 31, 2015 Property and equipment, net: United States $ 7,032 $ 6,664 Canada 5,082 5,165 Argentina 2,110 2,361 Ireland 1,919 1,651 Other foreign countries 1,481 1,126 Totals $ 17,624 $ 16,967

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2016
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, 2015 Additions Payments Adjustments March 31, 2016 Liabilities: Contingent consideration $ 6,209 $ 500 $ (2,284 ) $ (102 ) $ 4,323 Total $ 6,209 $ 500 $ (2,284 ) $ (102 ) $ 4,323

Basis of Presentation Accountin

Basis of Presentation Accounting Policies (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred Tax Assets, Net, Noncurrent	$ 12,695	$ 12,782
Adjustments for New Accounting Principle, Early Adoption [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred Tax Assets, Net, Noncurrent	$ 800

Business Combinations (Details

Business Combinations (Details Textual) - USD ($) $ in Thousands	Mar. 28, 2016	Mar. 02, 2016	Jan. 11, 2016	Nov. 13, 2015	Jan. 23, 2015	Jan. 02, 2015	Mar. 31, 2016	Mar. 31, 2015
Business Combinations (Textual) [Abstract]
Contingent consideration earn-out							$ (1,284)	$ 0
NeuroQuest [Member]
Business Combinations (Textual) [Abstract]
Purchase price paid in cash to acquire entity		$ 4,600
Contingent consideration earn-out		$ 500	$ 1,000
Monarch [Member]
Business Combinations (Textual) [Abstract]
Purchase price paid in cash to acquire entity				$ 2,700
Global Neuro-Diagnostics [Member]
Business Combinations (Textual) [Abstract]
Purchase price paid in cash to acquire entity					$ 11,400
Contingent consideration earn-out					$ 3,800
NicView [Member]
Business Combinations (Textual) [Abstract]
Purchase price paid in cash to acquire entity						$ 1,100
Contingent consideration earn-out	$ 1,300

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Earnings Per Share [Abstract]
Net income	$ 8,538	$ 8,597
Weighted average common shares	32,606	32,127
Dilutive effect of stock based awards	616	970
Diluted Shares	33,222	33,097
Basic earnings per share (dollars per share)	$ 0.26	$ 0.27
Diluted earnings per share (dollars per share)	$ 0.26	$ 0.26
Diluted earnings per share	179	0

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Summary of Inventories
Raw materials and subassemblies	$ 23,225	$ 19,041
Work in process	1,773	1,343
Finished goods	32,204	36,149
Total inventories	57,202	56,533
Less: Non-current inventories	(11,511)	(7,961)
Inventories, current	$ 45,691	$ 48,572

Intangible Assets (Details)

Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 150,331	$ 149,927
Accumulated Impairment	(3,394)	(3,340)
Accumulated Amortization	(63,445)	(60,051)
Net Book Value	83,492	86,536
Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	63,768	63,668
Accumulated Amortization	(32,557)	(31,600)
Net Book Value	31,211	32,068
Customer related [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	35,661	35,529
Accumulated Amortization	(15,213)	(14,352)
Net Book Value	20,448	21,177
Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	31,951	31,837
Accumulated Impairment	(3,394)	(3,340)
Accumulated Amortization	(4,079)	(3,052)
Net Book Value	24,478	25,445
Internally developed software [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	15,526	15,513
Accumulated Amortization	(8,642)	(8,155)
Net Book Value	6,884	7,358
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	2,707	2,663
Accumulated Amortization	(2,236)	(2,175)
Net Book Value	471	488
Backlog [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	718	717
Accumulated Amortization	(718)	(717)
Net Book Value	$ 0	$ 0
Minimum [Member] | Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	5 years
Minimum [Member] | Customer related [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	4 years
Minimum [Member] | Computer Software, Intangible Asset [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	4 years
Minimum [Member] | Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	10 years
Maximum [Member] | Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	20 years
Maximum [Member] | Customer related [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	16 years
Maximum [Member] | Computer Software, Intangible Asset [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	10 years
Maximum [Member] | Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	15 years

Intangible Assets (Details 1)

Intangible Assets (Details 1) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Amortization expense related to intangible assets with definite lives
Patents	$ 3,180	$ 1,947
Technology [Member]
Amortization expense related to intangible assets with definite lives
Patents	853	960
Customer related [Member]
Amortization expense related to intangible assets with definite lives
Patents	794	605
Trade Names [Member]
Amortization expense related to intangible assets with definite lives
Patents	1,029	0
Internally developed software [Member]
Amortization expense related to intangible assets with definite lives
Patents	476	354
Patents [Member]
Amortization expense related to intangible assets with definite lives
Patents	$ 28	$ 28

Intangible Assets (Details 2)

Intangible Assets (Details 2) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Expected annual amortization expense related to amortizable intangible assets
Nine months ending December 31, 2016	$ 9,405
2,017	12,283
2,018	12,058
2,019	10,908
2,020	8,745
2,021	8,007
Thereafter	22,086
Net Book Value	$ 83,492	$ 86,536

Intangible Assets (Details Text

Intangible Assets (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Acquired Finite-Lived Intangible Assets [Line Items]
Intangibles amortization	$ 2,134	$ 955
Income before provision for income tax	(11,667)	(12,517)
Net income	$ (8,538)	$ (8,597)
Diluted earnings per share (dollars per share)	$ (0.26)	$ (0.26)
Internally developed software [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Costs incurred for development of internal use computer software	$ 13,300
Costs incurred for development of software to be sold	$ 2,200
Trade Names [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted average life of intangible assets		7 years
Maximum [Member] | Customer related [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	16 years
Maximum [Member] | Computer Software, Intangible Asset [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	10 years
Maximum [Member] | Patents [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	15 years
Maximum [Member] | Developed Technology Rights [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	20 years
Minimum [Member] | Customer related [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	4 years
Minimum [Member] | Computer Software, Intangible Asset [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	4 years
Minimum [Member] | Patents [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	10 years
Minimum [Member] | Developed Technology Rights [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	5 years

Goodwill (Details)

Goodwill (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)
Carrying amount of goodwill
December 31, 2015	$ 107,466
Acquisitions	5,149
Foreign currency translation	306
March 31, 2016	$ 112,921

Property and Equipment, Net (De

Property and Equipment, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Property and equipment, net
Property and Equipment, Gross	$ 48,171	$ 46,495
Accumulated depreciation	(30,547)	(29,528)
Total	17,624	16,967
Land [Member]
Property and equipment, net
Property and Equipment, Gross	2,879	2,918
Buildings [Member]
Property and equipment, net
Property and Equipment, Gross	5,454	5,662
Leasehold improvements [Member]
Property and equipment, net
Property and Equipment, Gross	2,353	2,345
Office furniture and equipment [Member]
Property and equipment, net
Property and Equipment, Gross	13,921	13,866
Computer software and hardware [Member]
Property and equipment, net
Property and Equipment, Gross	12,125	10,488
Demonstration and loaned equipment [Member]
Property and equipment, net
Property and Equipment, Gross	$ 11,439	$ 11,216

Property and Equipment, Net (42

Property and Equipment, Net (Details Textual) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Property, Plant and Equipment [Abstract]
Depreciation expense of property and equipment	$ 1	$ 1

Reserve for Product Warrantie43

Reserve for Product Warranties (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Reserve for Product Warranties
Balance, beginning of period	$ 10,386	$ 2,753
Additions charged to expense	929	876
Reductions	(738)	(654)
Balance, end of period	$ 10,577	$ 2,975

Reserve for Product Warrantie44

Reserve for Product Warranties (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015	Dec. 31, 2014
Product Warranties Disclosures [Abstract]
Product warranty period	1 year
Product Warranty Liability [Line Items]
Product Warranty Accrual	$ 10,577	$ 10,386	$ 2,975	$ 2,753
Certain NeoBLUE Phototherapy Products [Member]
Product Warranty Liability [Line Items]
Product Warranty Accrual	$ 6,600

Share-Based Compensation (Detai

Share-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 2,901	$ 1,731
Cost of revenue [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	76	51
Marketing and selling [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	279	363
Research and development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	513	217
General and administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 2,033	$ 1,100

Share-Based Compensation (Det46

Share-Based Compensation (Details Textual) $ in Millions	3 Months Ended
	Mar. 31, 2016USD ($)plan
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Number of active share based compensation plans | plan	2
Unrecognized compensation expense related to unvested portion of stock options | $	$ 15.1
Weighted average period of recognition of unrecognized compensation expense	1 year 3 months

Other Income (Expense), net (De

Other Income (Expense), net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Other expense, net
Interest income	$ 8	$ 10
Interest expense	(31)	(1)
Foreign currency gain (loss)	450	(989)
Other	29	151
Total other income (expense), net	$ 456	$ (829)

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Tax Contingency [Line Items]
Provision for income tax	$ 3,100,000	$ 3,900,000
Effective tax rate	26.80%	31.30%
Change in enacted tax rate (percent)	4.70%
Discrete tax increase (decrease) (percent)	3.60%
Unrecognized tax expense	$ 600,000
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	$ 475,000
New Accounting Pronouncement, Early Adoption, Effect [Member]
Income Tax Contingency [Line Items]
Change in enacted tax rate (percent)	6.80%

Restructuring Reserves (Details

Restructuring Reserves (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)
Detail of activity in the restructuring reserve
Beginning balance	$ 1,676
Additions	372
Reversals	(337)
Payments	(471)
Ending balance	1,240
Personnel Related [Member]
Detail of activity in the restructuring reserve
Beginning balance	1,676
Additions	140
Reversals	(337)
Payments	(239)
Ending balance	1,240
Facility Related [Member]
Detail of activity in the restructuring reserve
Beginning balance	0
Additions	232
Reversals	0
Payments	(232)
Ending balance	$ 0

Segment, Customer and Geograp50

Segment, Customer and Geographic Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Consolidated Revenue:
Revenue	$ 87,329	$ 89,395
Revenue By End Market:
Total revenue	87,329	89,395
Property and equipment, net:
Property and equipment, net	17,624		$ 16,967
United States [Member]
Consolidated Revenue:
Revenue	56,899	54,564
Property and equipment, net:
Property and equipment, net	7,032		6,664
Canada [Member]
Property and equipment, net:
Property and equipment, net	5,082		5,165
Argentina [Member]
Property and equipment, net:
Property and equipment, net	2,110		2,361
Ireland [Member]
Property and equipment, net:
Property and equipment, net	1,919		1,651
Foreign Countries [Member]
Consolidated Revenue:
Revenue	30,430	34,831
Property and equipment, net:
Property and equipment, net	1,481		$ 1,126
Neurology Products [Member]
Revenue By End Market:
Total revenue	56,672	56,271
Neurology Products [Member] | Devices and Systems [Member]
Revenue By End Market:
Total revenue	38,876	40,108
Neurology Products [Member] | Supplies [Member]
Revenue By End Market:
Total revenue	15,355	14,876
Neurology Products [Member] | Services [Member]
Revenue By End Market:
Total revenue	2,441	1,287
Newborn Care Products [Member]
Revenue By End Market:
Total revenue	30,657	33,124
Newborn Care Products [Member] | Devices and Systems [Member]
Revenue By End Market:
Total revenue	13,541	18,364
Newborn Care Products [Member] | Supplies [Member]
Revenue By End Market:
Total revenue	11,614	12,388
Newborn Care Products [Member] | Services [Member]
Revenue By End Market:
Total revenue	$ 5,502	$ 2,372

Segment, Customer and Geograp51

Segment, Customer and Geographic Information (Details Textual)	3 Months Ended
	Mar. 31, 2016segmentcustomercountry	Mar. 31, 2015customercountry
Segment Reporting [Abstract]
Number of reportable segment | segment	1
Number of major customers | customer	0	0
Number of major countries | country	0	0

Fair Value Measurements (Detail

Fair Value Measurements (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Sep. 30, 2014	Jun. 30, 2014
Long Lived Assets Held-for-sale [Line Items]
Loss on disposal of property and equipment	$ (15)	$ 0
Mundelein Facility [Member] | Fair Value, Level 2 [Member]
Long Lived Assets Held-for-sale [Line Items]
Asset held-for-sale book value				$ 3,600
Loss on disposal of property and equipment			$ 2,200
Asset held-for-sale at fair value	$ 1,400

Fair Value Measurements (Deta53

Fair Value Measurements (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Contingent consideration, beginning balance	$ 6,209
Additions	500
Payments	(2,284)
Adjustments	(102)
Contingent consideration, ending balance	4,323
Contingent Consideration [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Contingent consideration, beginning balance	6,209
Additions	500
Payments	(2,284)
Adjustments	(102)
Contingent consideration, ending balance	$ 4,323

Immaterial Corrections to Prior

Immaterial Corrections to Prior Period Financial Statements (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Statement [Abstract]
Cost of revenue(1)	$ 32,469	$ 35,105
Gross profit	54,259
Income from operations	11,211
Income before provision for income tax	11,667	12,517
Provision for income tax expense	3,129	3,920
Net income	8,538	8,597
Comprehensive income	$ 9,198	$ 3,518
Basic (dollars per share)	$ 0.26	$ 0.27
Diluted (dollars per share)	$ 0.26	$ 0.26
Statement of Cash Flows [Abstract]
Inventories	$ (903)	$ (1,243)
Accrued liabilities(2)	(3,688)	(2,492)
Deferred revenue	446	159
Net cash provided by operating activities	$ 19,382	$ 13,812