Natus Medical (NTUS) 10-Q 3 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 28, 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	Sep. 30, 2016
Amendment Flag	false
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		32,911,604

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 81,073	$ 82,469
Short-term investments	25,429	0
Accounts receivable, net of allowance for doubtful accounts of $4,706 in 2016 and $4,686 in 2015	84,870	99,080
Inventories	51,654	48,572
Prepaid expenses and other current assets	22,939	11,235
Total current assets	265,965	241,356
Property and equipment, net	18,127	16,967
Intangible assets, net	82,775	86,536
Goodwill	111,918	107,466
Deferred income tax	12,694	12,782
Other assets	19,236	14,389
Total assets	510,715	479,496
Current liabilities:
Accounts payable	17,107	23,660
Accrued liabilities	38,711	42,137
Deferred revenue	33,334	11,311
Total current liabilities	89,152	77,108
Long-term liabilities:
Other liabilities	8,359	7,781
Deferred income tax	3,819	3,897
Total liabilities	101,330	88,786
Stockholders’ equity:
Common Stock, $0.001 par value, 120,000,000 shares authorized; shares issued and outstanding 32,888,068 in 2016 and 33,153,500 in 2015	311,058	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	139,176	106,814
Accumulated other comprehensive loss	(40,849)	(39,849)
Total stockholders’ equity	409,385	390,710
Total liabilities and stockholders’ equity	$ 510,715	$ 479,496

Consolidated Balance Sheets (un

Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 4,706	$ 4,686
Common Stock, par value (dollars per share)	$ 0.001	$ 0.001
Common Stock, shares authorized (in shares)	120,000,000	120,000,000
Common Stock, shares issued (in shares)	32,888,068	33,153,500
Common Stock, shares outstanding (in shares)	32,888,068	33,153,500
Preferred Stock, par value (dollars per share)	$ 0.001	$ 0.001
Preferred Stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred Stock, shares issued (in shares)	0	0
Preferred Stock, shares outstanding (in shares)	0	0

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income and Comprehensive Income (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
Revenue	$ 90,906	$ 94,583	$ 274,193	$ 275,915
Cost of revenue	32,194	35,520	102,542	104,468
Intangibles amortization	612	683	1,818	2,048
Gross profit	58,100	58,380	169,833	169,399
Operating expenses:
Marketing and selling	19,746	22,495	61,578	65,345
Research and development	7,689	7,700	22,596	21,867
General and administrative	12,821	10,031	37,225	33,239
Intangibles amortization	2,409	2,036	6,741	5,165
Restructuring	197	42	1,315	358
Total operating expenses	42,862	42,304	129,455	125,974
Income from operations	15,238	16,076	40,378	43,425
Other income (expense), net	(893)	7	(412)	(1,203)
Income before provision for income tax	14,345	16,083	39,966	42,222
Provision for income tax expense	1,032	5,151	7,605	12,842
Net income	13,313	10,932	32,361	29,380
Foreign currency translation adjustment	424	(642)	(999)	(4,452)
Comprehensive income	$ 13,737	$ 10,290	$ 31,362	$ 24,928
Earnings per share:
Basic (dollars per share)	$ 0.41	$ 0.34	$ 1	$ 0.91
Diluted (dollars per share)	$ 0.40	$ 0.33	$ 0.98	$ 0.89
Weighted average shares used in the calculation of earnings per share:
Basic (in shares)	32,388	32,432	32,476	32,279
Diluted (in shares)	32,981	33,253	33,077	33,194

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Operating activities:
Net income	$ 32,361	$ 29,380
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for losses on accounts receivable	940	945
Excess tax benefit on the exercise of stock options	0	(5,304)
Depreciation and amortization	12,820	11,346
Gain on disposal of property and equipment	(21)	0
Warranty reserve	3,273	4,771
Share-based compensation	6,957	5,382
Changes in operating assets and liabilities:
Accounts receivable	19,299	(6,681)
Inventories	(6,353)	(7,014)
Prepaid expenses and other assets	(13,261)	(1,049)
Accounts payable	(6,062)	3,237
Accrued liabilities	(6,488)	(3,596)
Deferred revenue	24,994	(2,049)
Deferred income tax	43	5,560
Net cash provided by operating activities	68,502	34,928
Investing activities:
Acquisition of businesses, net of cash acquired	(15,849)	(11,559)
Purchases of property and equipment	(2,176)	(2,990)
Purchase of intangible assets	(210)	(1,158)
Purchases of short-term investments	(25,429)	0
Net cash used in investing activities	(43,664)	(15,707)
Financing activities:
Proceeds from stock option exercises and Employee Stock Purchase Program purchases	2,550	6,086
Excess tax benefit on the exercise of stock options	0	5,304
Repurchase of common stock	(18,257)	(9,352)
Taxes paid related to net share settlement of equity awards	(3,937)	(4,303)
Contingent consideration	(1,284)	(664)
Proceeds from short-term borrowings	16,000	0
Deferred debt issuance costs	(533)	0
Payments on borrowings	(16,000)	0
Net cash used in financing activities	(21,461)	(2,929)
Exchange rate changes effect on cash and cash equivalents	(4,773)	(649)
Net increase in cash and cash equivalents	(1,396)	15,643
Cash and cash equivalents, beginning of period	82,469	66,558
Cash and cash equivalents, end of period	81,073	82,201
Supplemental disclosure of cash flow information:
Cash paid for interest	41	0
Cash paid for income taxes	8,024	5,348
Non-cash investing activities:
Property and equipment included in accounts payable	159	200
Inventory transferred to property and equipment	$ 1,240	$ 797

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 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 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 nine months ended September 30, 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 will adopt the standard in its first quarter of 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 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. The Company is currently evaluating the impact that will result from adopting ASU 2016-02. 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 simplifies 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 was applied using a modified retrospective approach. For the nine months ended September 30, 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 $1.9 million was recognized in the period ended September 30, 2016 as a result of the adoption of ASU 2016-09. There was 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. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This standard provides guidance for eight cash flow classification issues in current GAAP. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. The Company elected early adoption of ASU 2016-15 in the first quarter of 2016 relating to Contingent Consideration Payments Made after a Business Combination . For the nine months ended September 30, 2016, the Company recognized $1.0 million as a cash outflow for investing activities on the Statement of Cash Flows. This payment was made soon after the acquisition date of a business combination to settle the contingent consideration from the Monarch acquisition.

Business Combinations

Business Combinations	9 Months Ended
	Sep. 30, 2016
Business Combinations [Abstract]
Business Combinations	Business Combinations RetCam On July 6, 2016, we acquired the portfolio of RetCam Imaging Systems ("RetCam") from Clarity Medical Systems, Inc. for $10.6 million in cash. RetCam is an imaging system used to diagnose and monitor a range of ophthalmic maladies in premature infants. The purchase agreement also included a holdback of $2.0 million which is contingent upon completion of certain modifications to RetCam 3 no later than March 31, 2017. Subsequent to the acquisition, an additional $1.1 million was paid by the Company to Clarity Medical Systems as a result of a working capital adjustment. Results of operations for RetCam will be included in our consolidated financial statements from the date of acquisition. The total purchase price was allocated $7.7 million to tangible assets, $5.0 million to intangible assets with an assigned weighted average life of 5 years being amortized on the straight line method, and $1.0 million to goodwill, offset by $2.0 million to net liabilities. Purchase price allocation is considered preliminary at this time although no material adjustments are anticipated. Pro forma financial information for the RetCam acquisition is not presented as it is not considered material. NeuroQuest On March 2, 2016, we acquired NeuroQuest, LLC (“NeuroQuest”) through an asset purchase. NeuroQuest complements our Global Neuro-Diagnostics ("GND") and Monarch Medical Diagnostics, LLC ("Monarch") acquisitions which offer patients a convenient way to complete routine-electroencephalography ("EEG") and extended video electronencephalography ("VEEG") testing. The cash consideration for NeuroQuest was $4.6 million . The purchase agreement also included an asset consideration holdback of $0.5 million . The total purchase price was allocated to $0.5 million of tangible assets, $1.3 million of intangible assets with an assigned weighted average life of 5 years being amortized on the straight line method, and $3.5 million of goodwill, offset by $0.1 million of net liabilities. Purchase price allocation is considered preliminary at this time. Pro forma financial information for the NeuroQuest acquisition is not presented as it is not considered material. Monarch We acquired Monarch Medical Diagnostics, LLC ("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 and extended video EEG diagnostic 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. The total purchase price was allocated to $1.2 million of tangible assets, $1.2 million of intangible assets with an assigned weighted average life of 5 years being amortized on the straight line method, and $2.4 million of goodwill. Pro forma financial information for the Monarch acquisition is not presented as it is not considered material. Global Neuro-Diagnostics We acquired GND Operating LLC, and Braincare, LLC (collectively "GND") through an equity purchase on January 23, 2015. GND's service offers patients a convenient way to complete routine and extended video EEG diagnostic 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 , which consists primarily of $1.5 million of tangible assets, $4.8 million of intangible assets with an assigned weighted average life of 5 years being amortized on the straight line method, and $8.9 million of goodwill, offset by $0.5 million of net liabilities. The purchase agreement also included an earn-out provision contingent upon GND achieving certain revenue milestones from 2015 to 2017. At acquisition we estimated the earn-out to be $3.2 million . Each quarter we evaluate expected future revenue and adjust our estimate accordingly. We currently estimate this earn-out to be $0.5 million , which was a reduction of $2.8 million in the current quarter, as we expect lower revenues for 2016 and 2017 than anticipated. 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 Health Observation Systems, LLC ("NicView") for cash consideration of $1.1 million , of which $0.3 million was allocated to tangible assets and $2.7 million to goodwill, offset by $0.6 million allocated to net liabilities. 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	9 Months Ended
	Sep. 30, 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 Nine Months Ended 2016 2015 2016 2015 Net income $ 13,313 $ 10,932 $ 32,361 $ 29,380 Weighted average common shares 32,388 32,432 32,476 32,279 Dilutive effect of stock based awards 593 821 601 915 Diluted Shares 32,981 33,253 33,077 33,194 Basic earnings per share $ 0.41 $ 0.34 $ 1.00 $ 0.91 Diluted earnings per share $ 0.40 $ 0.33 $ 0.98 $ 0.89 Shares excluded from calculation of diluted EPS — — 138 —

Cash, Cash Equivalents, and Sho

Cash, Cash Equivalents, and Short-Term Investments	9 Months Ended
	Sep. 30, 2016
Investments, Debt and Equity Securities [Abstract]
Cash, Cash Equivalents, and Short-Term Investments	nvestments The Company has invested its excess cash in highly liquid marketable securities such as corporate debt instruments, U.S. government agency securities and asset-backed securities. Investments with maturities greater than one year are classified as current because management considers all investments to be available for current operations. The Company's investments are designed to provide liquidity, preserve capital and maximize total return on invested assets with a focus on high credit-quality securities. The Company's investments have been classified and accounted for as available-for-sale. Such investments are recorded at fair value and unrealized holding gains and losses are reported as a separate component of accumulated other comprehensive income (loss) in the stockholders' equity until realized. Realized gains and losses on sales of investments, if any, are determined on the specific identification method and are reclassified from accumulated other comprehensive income (loss) to results of operations as other income (expense). The Company, to date, has not determined that any of the unrealized losses on its investments are considered to be other-than-temporary. The Company reviews its investment portfolio to determine if any security is other-than-temporarily impaired, which would require the Company to record an impairment charge in the period any such determination is made. In making this judgment, the Company evaluates, among other things: the duration and extent to which the fair value of a security is less than its cost; the financial condition of the issuer and any changes thereto; and the Company's intent and ability to hold its investment for a period of time sufficient to allow for any anticipated recovery in market value, or whether the Company will more likely than not be required to sell the security before recovery of its aggregated cost basis. The Company has evaluated its investments as of September 30, 2016 and has determined that no investments with unrealized losses are other-than-temporarily impaired. No investments have been in a continuous loss position greater than one year. Cash, cash equivalents and short-term investments consisted of the following (in thousands): September 30, 2016 December 31, 2015 Cash and cash equivalents: Cash 74,072 82,469 U.S. Treasury Bills 7,001 — Total cash and cash equivalents 81,073 82,469 Short-term investments: U.S. investment grade bonds 16,865 — Developed investment grade bonds 8,564 — Total short-term investments 25,429 — Total cash, cash equivalents and short-term investments 106,502 82,469 Short-term Investments by investment type are as follows (in thousands): September 30, 2016 December 31, 2015 Aggregated Cost Basis Gross Unrealized Gains Gross Unrealized Losses Aggregated Fair Value Aggregated Cost Basis Gross Unrealized Gains Gross Unrealized Losses Aggregated Fair Value U.S. investment grade bonds 16,890 1 (26 ) 16,865 — — — — Developed investment grade bonds 8,579 — (15 ) 8,564 — — — — Total short-term investments $ 25,469 $ 1 $ (41 ) $ 25,429 $ — $ — $ — $ — Short-term investments by contractual maturity are as follows (in thousands): September 30, 2016 December 31, 2015 Investments Investments Due in one year or less $ 7,342 $ — Due after one year through five years 18,087 — Total short-term investment $ 25,429 $ —

Inventories

Inventories	9 Months Ended
	Sep. 30, 2016
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories consist of the following (in thousands): September 30, 2016 December 31, 2015 Raw materials and subassemblies $ 26,944 $ 19,041 Work in process 2,030 1,343 Finished goods 35,895 36,149 Total inventories 64,869 56,533 Less: Non-current inventories (13,215 ) (7,961 ) Inventories, current $ 51,654 $ 48,572 At September 30, 2016 and December 31, 2015 , we have classified $13.2 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	9 Months Ended
	Sep. 30, 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): September 30, 2016 December 31, 2015 Gross Accumulated Accumulated Net Book Gross Accumulated Accumulated Net Book Intangible assets with definite lives: Technology $ 63,264 $ — $ (34,140 ) $ 29,124 $ 63,668 $ — $ (31,600 ) $ 32,068 Customer related 37,283 — (16,863 ) 20,420 35,529 — (14,352 ) 21,177 Trade names 34,478 (3,379 ) (6,232 ) 24,867 31,837 (3,340 ) (3,052 ) 25,445 Internally developed software 17,722 — (9,769 ) 7,953 15,513 — (8,155 ) 7,358 Patents 2,694 — (2,283 ) 411 2,663 — (2,175 ) 488 Definite-lived intangible assets $ 155,441 $ (3,379 ) $ (69,287 ) $ 82,775 $ 149,210 $ (3,340 ) $ (59,334 ) $ 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, 5 to 7 years for trade names, and 10 to 15 years for patents. Internally developed software consists of $15.5 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 Nine Months Ended 2016 2015 2016 2015 Technology $ 863 $ 934 $ 2,571 $ 2,854 Customer related 848 689 2,495 2,092 Trade names 1,139 1,024 3,176 2,048 Internally developed software 602 434 1,618 1,142 Patents 28 28 84 84 Total amortization $ 3,480 $ 3,109 $ 9,944 $ 8,220 Expected amortization expense related to amortizable intangible assets is as follows (in thousands): Three months ending December 31, 2016 $ 3,390 2017 13,557 2018 13,333 2019 12,173 2020 9,974 2021 8,522 Thereafter 21,826 Total expected amortization expense $ 82,775

Goodwill

Goodwill	9 Months Ended
	Sep. 30, 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 4,485 Foreign currency translation (33 ) September 30, 2016 $ 111,918

Property and Equipment, net

Property and Equipment, net	9 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
Property and Equipment, net	Property and Equipment, net Property and equipment, net consist of the following (in thousands): September 30, 2016 December 31, 2015 Land $ 2,865 $ 2,918 Buildings 5,335 5,662 Leasehold improvements 2,400 2,345 Office furniture and equipment 14,513 13,866 Computer software and hardware 12,654 10,488 Demonstration and loaned equipment 11,838 11,216 49,605 46,495 Accumulated depreciation (31,478 ) (29,528 ) Total $ 18,127 $ 16,967 Depreciation expense of property and equipment was approximately $0.9 million and $2.9 million for the three and nine months ended September 30, 2016 , respectively, and approximately $1.0 million and $3.1 million for the three and nine months ended September 30, 2015 , respectively.

Reserve for Product Warranties

Reserve for Product Warranties	9 Months Ended
	Sep. 30, 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, but 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 September 30, 2016 we had accrued $6.5 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 and costs associated with shipping and repairing the product. We expect that costs associated with bringing the products back into compliance will not be incurred until the first quarter of 2017. Additional costs could be incurred in future periods to bring products into regulatory compliance, but such costs cannot currently be reasonably estimated. The details of activity in the warranty reserve are as follows (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Balance, beginning of period $ 10,858 $ 4,408 $ 10,386 $ 2,753 Additions charged to expense 960 1,617 3,273 4,770 Reductions (819 ) (813 ) (2,660 ) (2,311 ) Balance, end of period $ 10,999 $ 5,212 $ 10,999 $ 5,212 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	9 Months Ended
	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-Based Compensation	Share-Based Compensation As of September 30, 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 nine months ended September 30, 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 Nine Months Ended 2016 2015 2016 2015 Cost of revenue $ 50 $ 29 $ 169 $ 116 Marketing and selling 169 287 622 972 Research and development 320 249 1,185 644 General and administrative 1,415 1,326 4,981 3,650 Total $ 1,954 $ 1,891 $ 6,957 $ 5,382 As of September 30, 2016 , unrecognized compensation expense related to the unvested portion of our stock options and other stock awards was approximately $11.6 million , which is expected to be recognized over a weighted average period of 1.8 years .

Other Income (Expense), net

Other Income (Expense), net	9 Months Ended
	Sep. 30, 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 Nine Months Ended 2016 2015 2016 2015 Interest income $ 76 $ 13 $ 94 $ 28 Interest expense (223 ) — (351 ) — Foreign currency loss (783 ) (80 ) (282 ) (1,571 ) Other 37 74 127 340 Total other income (expense), net $ (893 ) $ 7 $ (412 ) $ (1,203 )

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Provision for Income Tax Expense We recorded provisions for income tax of $1.0 million and $7.6 million for the three and nine months ended September 30, 2016 , respectively. Our effective tax rate was 7.2% and 19.0% for the three and nine months ended September 30, 2016 , respectively. We recorded provisions for income tax of $5.2 million and $12.8 million for the three and nine months ended September 30, 2015 , respectively. Our effective tax rate was 32.0% and 30.4% for the three and nine months ended September 30, 2015 , respectively. Our effective tax rate for the three and nine months ended September 30, 2016 differed from the federal statutory tax rate primarily because of profits in foreign jurisdictions with lower tax rates than the federal statutory rate. The decrease in the effective tax rate for the three and nine months ended September 30, 2016 compared with the three and nine months ended September 30, 2015 is primarily attributable to shifts in the geographical mix of income whereby the income subject to income taxes recorded in high tax jurisdictions significantly decreased, and the income subject to income taxes recorded in low tax jurisdictions significantly increased. Our year-to-date results reflect the projected fiscal year 2016 effective tax rate as adjusted for the impact of any quarterly discrete events. The impact of the discrete items recorded during the three months ended September 30, 2016 decreased the quarterly tax rate by 11.8% . The tax impacts from material discrete items include the adoption of ASU 2016-09, Compensation - Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting, tax true-up adjustments relating to the filing of 2015 tax returns and adjustment of certain earn-out liabilities. The impacts from adoption of ASU 2016-09 decreased our quarterly effective tax rate by 3.8% ; the tax true-up adjustments recorded in this quarter related to the filing of 2015 tax returns increased our quarterly tax rate by 1.5% and the accounting income recognized in the adjustment of earn-out liabilities, which is not subject to income taxes, decreased our quarterly effective tax rate by 7.5% . The impact of the discrete items recorded during the three months ended September 30, 2015 decreased the quarterly tax rate by 0.1% . Excluding the impact of discrete items, the decrease in our quarterly effective tax rate for the three months ended September 30, 2016 , compared with the three months ended September 30, 2015 , is primarily attributable to forecasted shifts in the geographical mix of income. We recorded $0.3 million net tax expense of unrecognized tax benefits for the nine months ended September 30, 2016 . Within the next twelve months, it is possible our uncertain tax benefit may change within a range of approximately zero to $1.0 million . Our tax returns remain open to examinations as follows: U.S. Federal, 2013 through 2015; U.S. States, 2011 through 2015; and significant foreign jurisdictions, 2013 through 2015.

Restructuring Reserves

Restructuring Reserves	9 Months Ended
	Sep. 30, 2016
Restructuring and Related Activities [Abstract]
Restructuring Reserves	Restructuring Reserves Historically, the Company has completed multiple acquisitions of other companies and businesses. Following an acquisition the Company will, as it determines appropriate, initiate restructuring events to eliminate redundant costs to maintain a competitive cost structure. Restructuring expenses are related to permanent reductions in workforce and redundant facility closures. 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 nine months ended September 30, 2016 is as follows (in thousands): Personnel Related Facility Related Total Balance at December 31, 2015 $ 1,676 $ — $ 1,676 Additions 617 1,205 1,822 Reversals (425 ) — (425 ) Payments (1,853 ) (688 ) (2,541 ) Balance at September 30, 2016 $ 15 $ 517 $ 532

Debt and Credit Arrangements (N

Debt and Credit Arrangements (Notes)	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Debt and Credit Arrangements	Debt and Credit Arrangements The Company has a Credit Agreement with JP Morgan Chase Bank ("JP Morgan") and Citibank, NA (“Citibank”). The Credit Agreement provides for an aggregate $150.0 million of secured revolving credit facility. The Credit Agreement contains covenants, including covenants relating to maintenance of books and records, financial reporting and notification, compliance with laws, maintenance of properties and insurance, and limitations on guaranties, investments, issuance of debt, lease obligations and capital expenditures, and is secured by virtually all of the Company's assets. The Credit Agreement provides for events of default, including failure to pay any principal or interest when due, failure to perform or observe covenants, bankruptcy or insolvency events and the occurrence of a material adverse effect. The Company has no other significant credit facilities. As of September 30, 2016 no amounts were outstanding under the Credit Agreement. The Company expects to finance a portion of an acquisition announced in September 2016 with borrowings under the revolving credit facility, as well as existing cash. Pursuant to the terms of the Credit Agreement, the outstanding principal balance will bear interest at either (a) a fluctuating rate per annum equal to the Applicable Rate, as defined in the Credit Agreement, depending on our leverage ratio plus the higher of (i) the federal funds rate plus one-half of one percent per annum; (ii) the prime rate in effect on such a day; and (iii) the LIBOR rate plus one percent, or (b) a fluctuating rate per annum of LIBOR Rate plus the Applicable Rate. The Credit Agreement matures on September 23, 2021, at which time all principal amounts outstanding under the Credit Agreement will be due and payable. Due to the execution of the Credit Agreement mentioned above, the Company terminated a previously existing credit agreement between the Company and Citibank. Under this agreement, the Company borrowed and repaid a total of $16.0 million during the nine months ended September 30, 2016 .

Segment, Customer and Geographi

Segment, Customer and Geographic Information	9 Months Ended
	Sep. 30, 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 Nine Months Ended 2016 2015 2016 2015 Consolidated Revenue: United States $ 62,515 $ 62,601 $ 186,933 $ 177,862 Foreign countries 28,391 31,982 87,260 98,053 Totals $ 90,906 $ 94,583 $ 274,193 $ 275,915 Three Months Ended Nine Months Ended 2016 2015 2016 2015 Revenue by End Market: Neurology Products Devices and Systems $ 39,240 $ 42,040 $ 121,461 $ 123,135 Supplies 14,381 15,239 44,482 45,556 Services 3,131 2,125 8,794 5,614 Total Neurology Revenue 56,752 59,404 174,737 174,305 Newborn Care Products Devices and Systems 16,263 17,598 46,455 53,706 Supplies 11,792 12,584 35,677 37,233 Services 6,099 4,997 17,324 10,671 Total Newborn Care Revenue 34,154 35,179 99,456 101,610 Total Revenue $ 90,906 $ 94,583 $ 274,193 $ 275,915 September 30, 2016 December 31, 2015 Property and equipment, net: United States $ 7,663 $ 6,664 Canada 4,956 5,165 Argentina 2,000 2,361 Ireland 2,176 1,651 Other foreign countries 1,332 1,126 Totals $ 18,127 $ 16,967 During the three and nine months ended September 30, 2016 and 2015 , no single customer or foreign country contributed to more than 10% of revenue.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 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 September 30, 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 September 30, 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 September 30, 2016 Liabilities: Contingent consideration $ 6,209 $ 2,500 $ (2,284 ) $ (3,401 ) $ 3,024 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. The Company's Level 2 securities are valued using third-party pricing sources. The pricing services utilize industry standard valuation models, including both income and market-based approaches, for which all significant inputs are observable, either directly or indirectly, to estimate fair value. These inputs include reported trades of and broker/dealer quotes on the same or similar securities, issuer credit spread, benchmark securities, prepayment/default projections based on historical data and other observable inputs. The Company validates the prices provided by its third-party pricing services by understanding the models used, obtaining market values from other pricing sources, analyzing pricing data in certain instances and confirming those securities traded in active markets. See Note 4 to these Condensed Consolidated Financial Statements for further information regarding the Company's financials instruments. September 30, 2016 Level I Level II Level III Total U.S. Treasury Bills — 7,001 — 7,001 Short term investments U.S. investment grade bonds — 16,865 — 16,865 Developed investment grade bonds — 8,564 — 8,564 Total short term investments — 25,429 — 25,429

Basis Of Presentation (Policies

Basis Of Presentation (Policies)	9 Months Ended
	Sep. 30, 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 will adopt the standard in its first quarter of 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 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. The Company is currently evaluating the impact that will result from adopting ASU 2016-02. 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 simplifies 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 was applied using a modified retrospective approach. For the nine months ended September 30, 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 $1.9 million was recognized in the period ended September 30, 2016 as a result of the adoption of ASU 2016-09. There was 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. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This standard provides guidance for eight cash flow classification issues in current GAAP. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. The Company elected early adoption of ASU 2016-15 in the first quarter of 2016 relating to Contingent Consideration Payments Made after a Business Combination . For the nine months ended September 30, 2016, the Company recognized $1.0 million as a cash outflow for investing activities on the Statement of Cash Flows. This payment was made soon after the acquisition date of a business combination to settle the contingent consideration from the Monarch acquisition.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 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 Nine Months Ended 2016 2015 2016 2015 Net income $ 13,313 $ 10,932 $ 32,361 $ 29,380 Weighted average common shares 32,388 32,432 32,476 32,279 Dilutive effect of stock based awards 593 821 601 915 Diluted Shares 32,981 33,253 33,077 33,194 Basic earnings per share $ 0.41 $ 0.34 $ 1.00 $ 0.91 Diluted earnings per share $ 0.40 $ 0.33 $ 0.98 $ 0.89 Shares excluded from calculation of diluted EPS — — 138 —

Cash, Cash Equivalents, and S24

Cash, Cash Equivalents, and Short-Term Investments (Tables)	9 Months Ended
	Sep. 30, 2016
Investments, Debt and Equity Securities [Abstract]
Cash, Cash Equivalents and Investments	Cash, cash equivalents and short-term investments consisted of the following (in thousands): September 30, 2016 December 31, 2015 Cash and cash equivalents: Cash 74,072 82,469 U.S. Treasury Bills 7,001 — Total cash and cash equivalents 81,073 82,469 Short-term investments: U.S. investment grade bonds 16,865 — Developed investment grade bonds 8,564 — Total short-term investments 25,429 — Total cash, cash equivalents and short-term investments 106,502 82,469
Investments by Investment Type	nvestments by investment type are as follows (in thousands): September 30, 2016 December 31, 2015 Aggregated Cost Basis Gross Unrealized Gains Gross Unrealized Losses Aggregated Fair Value Aggregated Cost Basis Gross Unrealized Gains Gross Unrealized Losses Aggregated Fair Value U.S. investment grade bonds 16,890 1 (26 ) 16,865 — — — — Developed investment grade bonds 8,579 — (15 ) 8,564 — — — — Total short-term investments $ 25,469 $ 1 $ (41 ) $ 25,429 $ — $ — $ — $ —
Investments by Contractual Maturity	nvestments by contractual maturity are as follows (in thousands): September 30, 2016 December 31, 2015 Investments Investments Due in one year or less $ 7,342 $ — Due after one year through five years 18,087 — Total short-term investment $ 25,429 $ —

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2016
Inventory Disclosure [Abstract]
Summary of Inventories	Inventories consist of the following (in thousands): September 30, 2016 December 31, 2015 Raw materials and subassemblies $ 26,944 $ 19,041 Work in process 2,030 1,343 Finished goods 35,895 36,149 Total inventories 64,869 56,533 Less: Non-current inventories (13,215 ) (7,961 ) Inventories, current $ 51,654 $ 48,572

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 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): September 30, 2016 December 31, 2015 Gross Accumulated Accumulated Net Book Gross Accumulated Accumulated Net Book Intangible assets with definite lives: Technology $ 63,264 $ — $ (34,140 ) $ 29,124 $ 63,668 $ — $ (31,600 ) $ 32,068 Customer related 37,283 — (16,863 ) 20,420 35,529 — (14,352 ) 21,177 Trade names 34,478 (3,379 ) (6,232 ) 24,867 31,837 (3,340 ) (3,052 ) 25,445 Internally developed software 17,722 — (9,769 ) 7,953 15,513 — (8,155 ) 7,358 Patents 2,694 — (2,283 ) 411 2,663 — (2,175 ) 488 Definite-lived intangible assets $ 155,441 $ (3,379 ) $ (69,287 ) $ 82,775 $ 149,210 $ (3,340 ) $ (59,334 ) $ 86,536 Amortization expense related to intangible assets with definite lives was as follows (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Technology $ 863 $ 934 $ 2,571 $ 2,854 Customer related 848 689 2,495 2,092 Trade names 1,139 1,024 3,176 2,048 Internally developed software 602 434 1,618 1,142 Patents 28 28 84 84 Total amortization $ 3,480 $ 3,109 $ 9,944 $ 8,220
Expected amortization expense related to amortizable intangible assets	Expected amortization expense related to amortizable intangible assets is as follows (in thousands): Three months ending December 31, 2016 $ 3,390 2017 13,557 2018 13,333 2019 12,173 2020 9,974 2021 8,522 Thereafter 21,826 Total expected amortization expense $ 82,775

Goodwill (Tables)

Goodwill (Tables)	9 Months Ended
	Sep. 30, 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 4,485 Foreign currency translation (33 ) September 30, 2016 $ 111,918

Property and Equipment, net (Ta

Property and Equipment, net (Tables)	9 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
Property and Equipment net	Property and equipment, net consist of the following (in thousands): September 30, 2016 December 31, 2015 Land $ 2,865 $ 2,918 Buildings 5,335 5,662 Leasehold improvements 2,400 2,345 Office furniture and equipment 14,513 13,866 Computer software and hardware 12,654 10,488 Demonstration and loaned equipment 11,838 11,216 49,605 46,495 Accumulated depreciation (31,478 ) (29,528 ) Total $ 18,127 $ 16,967

Reserve for Product Warranties

Reserve for Product Warranties (Tables)	9 Months Ended
	Sep. 30, 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 Nine Months Ended 2016 2015 2016 2015 Balance, beginning of period $ 10,858 $ 4,408 $ 10,386 $ 2,753 Additions charged to expense 960 1,617 3,273 4,770 Reductions (819 ) (813 ) (2,660 ) (2,311 ) Balance, end of period $ 10,999 $ 5,212 $ 10,999 $ 5,212

Share-Based Compensation (Table

Share-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 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 Nine Months Ended 2016 2015 2016 2015 Cost of revenue $ 50 $ 29 $ 169 $ 116 Marketing and selling 169 287 622 972 Research and development 320 249 1,185 644 General and administrative 1,415 1,326 4,981 3,650 Total $ 1,954 $ 1,891 $ 6,957 $ 5,382

Other Income (Expense), net (Ta

Other Income (Expense), net (Tables)	9 Months Ended
	Sep. 30, 2016
Other Income and Expenses [Abstract]
Other Income (Expense), net	Other income (expense), net consists of (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Interest income $ 76 $ 13 $ 94 $ 28 Interest expense (223 ) — (351 ) — Foreign currency loss (783 ) (80 ) (282 ) (1,571 ) Other 37 74 127 340 Total other income (expense), net $ (893 ) $ 7 $ (412 ) $ (1,203 )

Restructuring Reserves (Tables)

Restructuring Reserves (Tables)	9 Months Ended
	Sep. 30, 2016
Restructuring and Related Activities [Abstract]
Detail of Activity in the Restructuring Reserve	Activity in the restructuring reserves for the nine months ended September 30, 2016 is as follows (in thousands): Personnel Related Facility Related Total Balance at December 31, 2015 $ 1,676 $ — $ 1,676 Additions 617 1,205 1,822 Reversals (425 ) — (425 ) Payments (1,853 ) (688 ) (2,541 ) Balance at September 30, 2016 $ 15 $ 517 $ 532

Segment, Customer and Geograp33

Segment, Customer and Geographic Information (Tables)	9 Months Ended
	Sep. 30, 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 Nine Months Ended 2016 2015 2016 2015 Consolidated Revenue: United States $ 62,515 $ 62,601 $ 186,933 $ 177,862 Foreign countries 28,391 31,982 87,260 98,053 Totals $ 90,906 $ 94,583 $ 274,193 $ 275,915 Three Months Ended Nine Months Ended 2016 2015 2016 2015 Revenue by End Market: Neurology Products Devices and Systems $ 39,240 $ 42,040 $ 121,461 $ 123,135 Supplies 14,381 15,239 44,482 45,556 Services 3,131 2,125 8,794 5,614 Total Neurology Revenue 56,752 59,404 174,737 174,305 Newborn Care Products Devices and Systems 16,263 17,598 46,455 53,706 Supplies 11,792 12,584 35,677 37,233 Services 6,099 4,997 17,324 10,671 Total Newborn Care Revenue 34,154 35,179 99,456 101,610 Total Revenue $ 90,906 $ 94,583 $ 274,193 $ 275,915 September 30, 2016 December 31, 2015 Property and equipment, net: United States $ 7,663 $ 6,664 Canada 4,956 5,165 Argentina 2,000 2,361 Ireland 2,176 1,651 Other foreign countries 1,332 1,126 Totals $ 18,127 $ 16,967

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 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 September 30, 2016 Liabilities: Contingent consideration $ 6,209 $ 2,500 $ (2,284 ) $ (3,401 ) $ 3,024
Fair value level classification of investments	The Company's Level 2 securities are valued using third-party pricing sources. The pricing services utilize industry standard valuation models, including both income and market-based approaches, for which all significant inputs are observable, either directly or indirectly, to estimate fair value. These inputs include reported trades of and broker/dealer quotes on the same or similar securities, issuer credit spread, benchmark securities, prepayment/default projections based on historical data and other observable inputs. The Company validates the prices provided by its third-party pricing services by understanding the models used, obtaining market values from other pricing sources, analyzing pricing data in certain instances and confirming those securities traded in active markets. See Note 4 to these Condensed Consolidated Financial Statements for further information regarding the Company's financials instruments. September 30, 2016 Level I Level II Level III Total U.S. Treasury Bills — 7,001 — 7,001 Short term investments U.S. investment grade bonds — 16,865 — 16,865 Developed investment grade bonds — 8,564 — 8,564 Total short term investments — 25,429 — 25,429

Basis of Presentation Accountin

Basis of Presentation Accounting Policies (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred income tax	$ 12,694	$ 12,782
Adjustments for New Accounting Principle, Early Adoption [Member] | ASU 2016-09 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred income tax	1,900
Adjustments for New Accounting Principle, Early Adoption [Member] | ASU 2016-15 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Contingent consideration earn-out	$ 1,000

Business Combinations (Details

Business Combinations (Details Textual) - USD ($) $ in Thousands	Jul. 06, 2016	Mar. 02, 2016	Jan. 11, 2016	Nov. 13, 2015	Jan. 23, 2015	Jan. 02, 2015	Sep. 30, 2016	Sep. 30, 2016	Dec. 31, 2015
Business Acquisition [Line Items]
Goodwill							$ 111,918	$ 111,918	$ 107,466
RetCam [Member]
Business Acquisition [Line Items]
Purchase price paid in cash to acquire entity	$ 10,600
Contingent consideration earn-out	2,000
Additional consideration paid								1,100
Tangible assets	7,700
Intangible assets	$ 5,000
Weighted average life of intangible assets	5 years
Goodwill	$ 1,000
Net liabilities	$ 2,000
NeuroQuest [Member]
Business Acquisition [Line Items]
Purchase price paid in cash to acquire entity		$ 4,600
Contingent consideration earn-out		500
Tangible assets		500
Intangible assets		$ 1,300
Weighted average life of intangible assets		5 years
Goodwill		$ 3,500
Net liabilities		$ 100
Monarch [Member]
Business Acquisition [Line Items]
Purchase price paid in cash to acquire entity				$ 2,700
Contingent consideration earn-out				$ 1,000
Tangible assets			$ 1,200
Intangible assets			$ 1,200
Weighted average life of intangible assets			5 years
Goodwill			$ 2,400
Global Neuro-Diagnostics [Member]
Business Acquisition [Line Items]
Purchase price paid in cash to acquire entity					$ 11,400
Contingent consideration earn-out					3,200		500	$ 500
Tangible assets					1,500
Intangible assets					$ 4,800
Weighted average life of intangible assets					5 years
Goodwill					$ 8,900
Business Combination, Consideration Transferred, Liabilities Incurred					$ 500
Reduction of contingent consideration earn-out							$ 2,800
NicView [Member]
Business Acquisition [Line Items]
Purchase price paid in cash to acquire entity						$ 1,100
Contingent consideration earn-out						1,300
Tangible assets						300
Goodwill						2,700
Business Combination, Consideration Transferred, Liabilities Incurred						$ 600

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Earnings Per Share [Abstract]
Net income	$ 13,313	$ 10,932	$ 32,361	$ 29,380
Weighted average common shares (in shares)	32,388	32,432	32,476	32,279
Dilutive effect of stock based awards (in shares)	593	821	601	915
Diluted Shares (in shares)	32,981	33,253	33,077	33,194
Basic earnings per share (dollars per share)	$ 0.41	$ 0.34	$ 1	$ 0.91
Diluted earnings per share (dollars per share)	$ 0.40	$ 0.33	$ 0.98	$ 0.89
Diluted earnings per share (in shares)	0	0	138	0

Cash, Cash Equivalents, and S38

Cash, Cash Equivalents, and Short-Term Investments (Details Textual)	Sep. 30, 2016
Investments, Debt and Equity Securities [Abstract]
Investment grade rating (percent)	92.00%

Cash, Cash Equivalents, and S39

Cash, Cash Equivalents, and Short-Term Investments Cash, Cash Equivalents, and Short-Term Investments (Details 1) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Cash and Cash Equivalents [Line Items]
Total cash and cash equivalents	$ 81,073	$ 82,469	$ 82,201	$ 66,558
Schedule of Available-for-sale Securities [Line Items]
Short-term investments	25,429	0
Total cash, cash equivalents and short-term investments	106,502	82,469
US investment grade bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Short-term investments	16,865	0
Developed investment grade bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Short-term investments	8,564	0
Cash [Member]
Cash and Cash Equivalents [Line Items]
Total cash and cash equivalents	74,072	82,469
U.S. Treasury Bills [Member]
Cash and Cash Equivalents [Line Items]
Total cash and cash equivalents	$ 7,001	$ 0

Cash, Cash Equivalents, and S40

Cash, Cash Equivalents, and Short-Term Investments (Details 2) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Aggregated Cost Basis	$ 25,469	$ 0
Gross Unrealized Gains	1	0
Gross Unrealized Losses	(41)	0
Aggregated Fair Value	25,429	0
US investment grade bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Aggregated Cost Basis	16,890	0
Gross Unrealized Gains	1	0
Gross Unrealized Losses	(26)	0
Aggregated Fair Value	16,865	0
Developed investment grade bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Aggregated Cost Basis	8,579	0
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(15)	0
Aggregated Fair Value	$ 8,564	$ 0

Cash, Cash Equivalents, and S41

Cash, Cash Equivalents, and Short-Term Investments (Details 3) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Due in one year or less	$ 7,342	$ 0
Due after one year through five years	18,087	0
Total short-term investment	$ 25,429	$ 0

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Summary of Inventories
Raw materials and subassemblies	$ 26,944	$ 19,041
Work in process	2,030	1,343
Finished goods	35,895	36,149
Total inventories	64,869	56,533
Less: Non-current inventories	(13,215)	(7,961)
Inventories, current	$ 51,654	$ 48,572

Intangible Assets (Details)

Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 155,441	$ 149,210
Accumulated Impairment	(3,379)	(3,340)
Accumulated Amortization	(69,287)	(59,334)
Net Book Value	82,775	86,536
Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	63,264	63,668
Accumulated Amortization	(34,140)	(31,600)
Net Book Value	29,124	32,068
Customer related [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	37,283	35,529
Accumulated Amortization	(16,863)	(14,352)
Net Book Value	20,420	21,177
Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	34,478	31,837
Accumulated Impairment	(3,379)	(3,340)
Accumulated Amortization	(6,232)	(3,052)
Net Book Value	24,867	25,445
Internally developed software [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	17,722	15,513
Accumulated Amortization	(9,769)	(8,155)
Net Book Value	7,953	7,358
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	2,694	2,663
Accumulated Amortization	(2,283)	(2,175)
Net Book Value	$ 411	$ 488

Intangible Assets (Details Text

Intangible Assets (Details Textual) $ in Millions	9 Months Ended
	Sep. 30, 2016USD ($)
Internally developed software [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Costs incurred for development of internal use computer software	$ 15.5
Costs incurred for development of software to be sold	$ 2.2
Minimum [Member] | Developed Technology Rights [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life (in years)	5 years
Minimum [Member] | Customer related [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life (in years)	4 years
Minimum [Member] | Internally developed software [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life (in years)	4 years
Minimum [Member] | Trade Names [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life (in years)	5 years
Minimum [Member] | Patents [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life (in years)	10 years
Maximum [Member] | Developed Technology Rights [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life (in years)	20 years
Maximum [Member] | Customer related [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life (in years)	16 years
Maximum [Member] | Internally developed software [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life (in years)	10 years
Maximum [Member] | Trade Names [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life (in years)	7 years
Maximum [Member] | Patents [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life (in years)	15 years

Intangible Assets (Details 1)

Intangible Assets (Details 1) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Finite-Lived Intangible Assets [Line Items]
Total amortization	$ 3,480	$ 3,109	$ 9,944	$ 8,220
Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Total amortization	863	934	2,571	2,854
Customer related [Member]
Finite-Lived Intangible Assets [Line Items]
Total amortization	848	689	2,495	2,092
Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Total amortization	1,139	1,024	3,176	2,048
Internally developed software [Member]
Finite-Lived Intangible Assets [Line Items]
Total amortization	602	434	1,618	1,142
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Total amortization	$ 28	$ 28	$ 84	$ 84

Intangible Assets (Details 2)

Intangible Assets (Details 2) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Expected annual amortization expense related to amortizable intangible assets
Three months ending December 31, 2016	$ 3,390
2,017	13,557
2,018	13,333
2,019	12,173
2,020	9,974
2,021	8,522
Thereafter	21,826
Net Book Value	$ 82,775	$ 86,536

Goodwill (Details)

Goodwill (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2016USD ($)
Carrying amount of goodwill
December 31, 2015	$ 107,466
Acquisitions	4,485
Foreign currency translation	(33)
September 30, 2016	$ 111,918

Property and Equipment, Net (De

Property and Equipment, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 49,605	$ 46,495
Accumulated depreciation	(31,478)	(29,528)
Total	18,127	16,967
Land [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	2,865	2,918
Buildings [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	5,335	5,662
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	2,400	2,345
Office furniture and equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	14,513	13,866
Computer software and hardware [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	12,654	10,488
Demonstration and loaned equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 11,838	$ 11,216

Property and Equipment, Net (49

Property and Equipment, Net (Details Textual) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Property, Plant and Equipment [Abstract]
Depreciation expense of property and equipment	$ 0.9	$ 1	$ 2.9	$ 3.1

Reserve for Product Warrantie50

Reserve for Product Warranties (Details Textual) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Jun. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2014
Product Warranties Disclosures [Abstract]
Product warranty period (in years)	1 year
Product Warranty Liability [Line Items]
Accrual of estimated costs	$ 10,999	$ 10,858	$ 10,386	$ 5,212	$ 4,408	$ 2,753
Certain NeoBLUE Phototherapy Products [Member]
Product Warranty Liability [Line Items]
Accrual of estimated costs	$ 6,500

Reserve for Product Warrantie51

Reserve for Product Warranties (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Reserve for Product Warranties
Balance, beginning of period	$ 10,858	$ 4,408	$ 10,386	$ 2,753
Additions charged to expense	960	1,617	3,273	4,770
Reductions	(819)	(813)	(2,660)	(2,311)
Balance, end of period	$ 10,999	$ 5,212	$ 10,999	$ 5,212

Share-Based Compensation (Detai

Share-Based Compensation (Details Textual) $ in Millions	9 Months Ended
	Sep. 30, 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 | $	$ 11.6
Weighted average period of recognition of unrecognized compensation expense	1 year 10 months

Share-Based Compensation (Det53

Share-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 1,954	$ 1,891	$ 6,957	$ 5,382
Cost of revenue [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	50	29	169	116
Marketing and selling [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	169	287	622	972
Research and development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	320	249	1,185	644
General and administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 1,415	$ 1,326	$ 4,981	$ 3,650

Other Income (Expense), net (De

Other Income (Expense), net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Other expense, net
Interest income	$ 76	$ 13	$ 94	$ 28
Interest expense	(223)	0	(351)	0
Foreign currency loss	(783)	(80)	(282)	(1,571)
Other	37	74	127	340
Total other income (expense), net	$ (893)	$ 7	$ (412)	$ (1,203)

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Tax Contingency [Line Items]
Provision for income tax	$ 1,000,000	$ 5,200,000	$ 7,600,000	$ 12,800,000
Effective tax rate (percent)	7.20%	32.00%	19.00%	30.40%
Discrete tax increase (decrease) (percent)	11.80%	0.10%
Change in enacted tax rate (percent)	1.50%
Decrease in quarterly effective tax rate (percent)	7.50%
Unrecognized tax expense	$ 300,000		$ 300,000
Minimum [Member]
Income Tax Contingency [Line Items]
Tax positions for which it is reasonably possible that the total amount could change	0		0
Maximum [Member]
Income Tax Contingency [Line Items]
Tax positions for which it is reasonably possible that the total amount could change	$ 1,000,000		$ 1,000,000
Impacts from adoption of ASU 2016-09 [Member]
Income Tax Contingency [Line Items]
Change in enacted tax rate (percent)	3.80%

Restructuring Reserves (Details

Restructuring Reserves (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2016USD ($)
Detail of activity in the restructuring reserve
Beginning balance	$ 1,676
Additions	1,822
Reversals	(425)
Payments	(2,541)
Ending balance	532
Personnel Related [Member]
Detail of activity in the restructuring reserve
Beginning balance	1,676
Additions	617
Reversals	(425)
Payments	(1,853)
Ending balance	15
Facility Related [Member]
Detail of activity in the restructuring reserve
Beginning balance	0
Additions	1,205
Reversals	0
Payments	(688)
Ending balance	$ 517

Debt and Credit Arrangements (D

Debt and Credit Arrangements (Details) - Credit Agreement [Member] - Citibank, National Association [Member]	9 Months Ended
	Sep. 30, 2016USD ($)
Line of Credit Facility [Line Items]
Aggregate secured revolving credit facility	$ 150,000,000
Borrowings	16,000,000
Repayments	$ 16,000,000
Federal Funds Rate
Line of Credit Facility [Line Items]
Interest rate	0.50%
LIBOR rate
Line of Credit Facility [Line Items]
Interest rate	1.00%

Segment, Customer and Geograp58

Segment, Customer and Geographic Information (Details Textual)	9 Months Ended
	Sep. 30, 2016segment
Segment Reporting [Abstract]
Number of reportable segments (segments)	1

Segment, Customer and Geograp59

Segment, Customer and Geographic Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Consolidated Revenue:
Revenue	$ 90,906	$ 94,583	$ 274,193	$ 275,915
Revenue by End Market:
Total Revenue	90,906	94,583	274,193	275,915
Property and equipment, net:
Property and equipment, net	18,127		18,127		$ 16,967
Neurology Products [Member]
Revenue by End Market:
Total Revenue	56,752	59,404	174,737	174,305
Neurology Products [Member] | Devices and Systems [Member]
Revenue by End Market:
Total Revenue	39,240	42,040	121,461	123,135
Neurology Products [Member] | Supplies [Member]
Revenue by End Market:
Total Revenue	14,381	15,239	44,482	45,556
Neurology Products [Member] | Services [Member]
Revenue by End Market:
Total Revenue	3,131	2,125	8,794	5,614
Newborn Care Products [Member]
Revenue by End Market:
Total Revenue	34,154	35,179	99,456	101,610
Newborn Care Products [Member] | Devices and Systems [Member]
Revenue by End Market:
Total Revenue	16,263	17,598	46,455	53,706
Newborn Care Products [Member] | Supplies [Member]
Revenue by End Market:
Total Revenue	11,792	12,584	35,677	37,233
Newborn Care Products [Member] | Services [Member]
Revenue by End Market:
Total Revenue	6,099	4,997	17,324	10,671
United States [Member]
Consolidated Revenue:
Revenue	62,515	62,601	186,933	177,862
Property and equipment, net:
Property and equipment, net	7,663		7,663		6,664
Foreign Countries [Member]
Consolidated Revenue:
Revenue	28,391	$ 31,982	87,260	$ 98,053
Property and equipment, net:
Property and equipment, net	1,332		1,332		1,126
Canada [Member]
Property and equipment, net:
Property and equipment, net	4,956		4,956		5,165
Argentina [Member]
Property and equipment, net:
Property and equipment, net	2,000		2,000		2,361
Ireland [Member]
Property and equipment, net:
Property and equipment, net	$ 2,176		$ 2,176		$ 1,651

Fair Value Measurements (Detail

Fair Value Measurements (Details Textual) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2016	Sep. 30, 2015	Jun. 30, 2014
Long Lived Assets Held-for-sale [Line Items]
Loss on disposal of property and equipment		$ 21	$ 0
Mundelein Facility [Member] | Level II [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 (Deta61

Fair Value Measurements (Details) - Level III [Member] - Contingent Consideration [Member] $ in Thousands	9 Months Ended
	Sep. 30, 2016USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Contingent consideration, beginning balance	$ 6,209
Additions	2,500
Payments	(2,284)
Adjustments	(3,401)
Contingent consideration, ending balance	$ 3,024

Fair Value Measurements (Deta62

Fair Value Measurements (Details 2) - Fair value measured on a recurring basis [Member] $ in Thousands	Sep. 30, 2016USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	$ 25,429
Level I [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	0
Level II [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	25,429
Level III [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	0
U.S. Treasury Bills [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	7,001
U.S. Treasury Bills [Member] | Level I [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	0
U.S. Treasury Bills [Member] | Level II [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	7,001
U.S. Treasury Bills [Member] | Level III [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	0
US investment grade bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	16,865
US investment grade bonds [Member] | Level I [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	0
US investment grade bonds [Member] | Level II [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	16,865
US investment grade bonds [Member] | Level III [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	0
Developed investment grade bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	8,564
Developed investment grade bonds [Member] | Level I [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	0
Developed investment grade bonds [Member] | Level II [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	8,564
Developed investment grade bonds [Member] | Level III [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	$ 0