Natus Medical (NTUS) 10-Q 6 Aug 21 2021 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jun. 30, 2021	Jul. 30, 2021
Cover [Abstract]
Entity Address, Address Line One	6701 Koll Center Parkway, Suite 120
Entity File Number	000-33001
Entity Incorporation, State or Country Code	DE
Document Transition Report	false
Document Quarterly Report	true
Title of 12(b) Security	Common Stock, $0.001 par value per share
Trading Symbol	NTUS
Security Exchange Name	NASDAQ
Entity Small Business	false
Entity Registrant Name	NATUS MEDICAL INC
Entity Central Index Key	0000878526
Document Type	10-Q
Document Period End Date	Jun. 30, 2021
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		34,130,686
Entity Emerging Growth Company	false
Entity Tax Identification Number	77-0154833
Entity Address, City or Town	Pleasanton
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94566
City Area Code	925
Local Phone Number	223-6700
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2021
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.

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 62,494	$ 82,082
Accounts receivable, net of allowance for doubtful accounts of $6,130 in 2021 and $6,213 in 2020	92,793	93,133
Inventories	68,350	75,650
Prepaid expenses and other current assets	22,062	20,837
Total current assets	245,699	271,702
Property and equipment, net	23,552	24,516
Operating lease right-of-use assets	10,946	11,669
Intangible assets, net	80,054	92,741
Goodwill	150,482	151,299
Deferred income tax	26,349	27,563
Other assets	19,136	20,904
Total assets	556,218	600,394
Current liabilities:
Accounts payable	26,892	23,429
Current portion of long-term debt	0	50,000
Accrued liabilities	45,253	44,236
Deferred revenue	24,465	21,308
Current portion of operating lease liabilities	5,853	6,779
Total current liabilities	102,463	145,752
Liabilities, Noncurrent [Abstract]
Other liabilities	17,829	18,451
Operating lease liabilities	8,061	8,959
Long-term debt, net of current portion	0	5,840
Deferred income tax	10,038	10,298
Total liabilities	138,391	189,300
Stockholders’ equity:
Common stock, $0.001 par value, 120,000,000 shares authorized; shares issued and outstanding 34,132,106 in 2021 and 33,911,703 in 2020	347,818	342,828
Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued and outstanding in 2021 and 2020	0	0
Retained earnings	77,169	71,309
Accumulated other comprehensive loss	(7,160)	(3,043)
Total stockholders’ equity	417,827	411,094
Total liabilities and stockholders’ equity	$ 556,218	$ 600,394

Consolidated Balance Sheets (un

Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 6,130	$ 6,213
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)	34,132,106	33,911,703
Common Stock, shares outstanding (in shares)	34,132,106	33,911,703
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 Operations (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Statement [Abstract]
Revenue	$ 115,978	$ 84,780	$ 230,904	$ 194,163
Cost of revenue	47,843	42,573	94,531	87,506
Intangibles amortization	1,734	1,654	3,485	3,322
Gross profit	66,401	40,553	132,888	103,335
Operating expenses:
Marketing and selling	29,488	22,802	58,459	53,532
Research and development	14,249	14,336	28,289	31,905
General and administrative	12,610	11,187	27,462	24,368
Intangibles amortization	3,919	3,644	7,816	7,305
Restructuring	121	621	327	1,492
Total operating expenses	60,387	52,590	122,353	118,602
Income (loss) from operations	6,014	(12,037)	10,535	(15,267)
Other expense, net	(651)	(757)	(2,307)	(2,251)
Income (loss) before provision for (benefit from) income tax	5,363	(12,794)	8,228	(17,518)
Provision for (benefit from) income taxes	1,899	(3,891)	2,368	(5,018)
Net income (loss)	$ 3,464	$ (8,903)	$ 5,860	$ (12,500)
Net income (loss) per share:
Basic (dollars per share)	$ 0.10	$ (0.26)	$ 0.17	$ (0.37)
Diluted (dollars per share)	$ 0.10	$ (0.26)	$ 0.17	$ (0.37)
Weighted average shares used in the calculation of net income (loss) per share:
Basic (in shares)	33,637	33,827	33,628	33,624
Diluted (in shares)	33,871	33,827	33,845	33,624

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 3,464	$ (8,903)	$ 5,860	$ (12,500)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment	2,167	3,116	(4,327)	(902)
Interest rate swap designated as a cash flow hedge	142	65	210	(110)
Other comprehensive income (loss), net of tax	2,309	3,181	(4,117)	(1,012)
Comprehensive income (loss)	$ 5,773	$ (5,722)	$ 1,743	$ (13,512)

Condensed Consolidated Statem_3

Condensed Consolidated Statement of Stockholders' Equity (unaudited) Condensed Consolidated Statement of Stockholders' Equity (unaudited) - USD ($) $ in Thousands	Total	Common Stock	Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Beginning of period (shares) at Dec. 31, 2019		34,148,700
Beginning of period at Dec. 31, 2019	$ 416,123	$ 344,476	$ 87,922	$ (16,275)
Vesting Of Restricted Stock Units Shares		14,033
Net issuance of restricted stock awards (in shares)		162,212
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture	2,198	$ 2,198
Stock Repurchased During Period, Shares		(465,117)
Stock Repurchased During Period, Value	(10,495)	$ (10,495)
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation		(57,695)
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation	(1,883)	$ (1,883)
Other Comprehensive Income (Loss) Excluding Impact Of New Accounting Pronouncement	(4,193)			(4,193)
Net income (loss)	(3,597)		(3,597)
End of period (shares) at Mar. 31, 2020		33,802,133
End of period at Mar. 31, 2020	398,153	$ 334,296	84,325	(20,468)
Beginning of period (shares) at Dec. 31, 2019		34,148,700
Beginning of period at Dec. 31, 2019	416,123	$ 344,476	87,922	(16,275)
Other Comprehensive Income (Loss), Net of Tax	(1,012)
Net income (loss)	(12,500)
End of period (shares) at Jun. 30, 2020		33,871,723
End of period at Jun. 30, 2020	395,473	$ 337,338	75,422	(17,287)
Beginning of period (shares) at Mar. 31, 2020		33,802,133
Beginning of period at Mar. 31, 2020	398,153	$ 334,296	84,325	(20,468)
Net issuance of restricted stock awards (in shares)		40,483
Employee stock purchase plan (in shares)		30,955
Employee stock purchase plan	658	$ 658
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture	2,427	$ 2,427
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation		(1,848)
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation	(43)	$ (43)
Other Comprehensive Income (Loss), Net of Tax	3,181			3,181
Net income (loss)	(8,903)		(8,903)
End of period (shares) at Jun. 30, 2020		33,871,723
End of period at Jun. 30, 2020	395,473	$ 337,338	75,422	(17,287)
Beginning of period (shares) at Dec. 31, 2020		33,911,703
Beginning of period at Dec. 31, 2020	411,094	$ 342,828	71,309	(3,043)
Vesting Of Restricted Stock Units Shares		19,650
Net issuance of restricted stock awards (in shares)		222,899
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture	3,018	$ 3,018
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation		(57,357)
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation	(1,150)	$ (1,150)
Other Comprehensive Income (Loss), Net of Tax	(6,426)			(6,426)
Net income (loss)	2,396		2,396
End of period (shares) at Mar. 31, 2021		34,096,895
End of period at Mar. 31, 2021	408,932	$ 344,696	73,705	(9,469)
Beginning of period (shares) at Dec. 31, 2020		33,911,703
Beginning of period at Dec. 31, 2020	411,094	$ 342,828	71,309	(3,043)
Other Comprehensive Income (Loss), Net of Tax	(4,117)
Net income (loss)	5,860
End of period (shares) at Jun. 30, 2021		34,132,106
End of period at Jun. 30, 2021	417,827	$ 347,818	77,169	(7,160)
Beginning of period (shares) at Mar. 31, 2021		34,096,895
Beginning of period at Mar. 31, 2021	408,932	$ 344,696	73,705	(9,469)
Net issuance of restricted stock awards (in shares)		10,573
Employee stock purchase plan (in shares)		28,158
Employee stock purchase plan	612	$ 612
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture	2,604	$ 2,604
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation		(3,520)
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation	(94)	$ (94)
Other Comprehensive Income (Loss), Net of Tax	2,309			2,309
Net income (loss)	3,464		3,464
End of period (shares) at Jun. 30, 2021		34,132,106
End of period at Jun. 30, 2021	$ 417,827	$ 347,818	$ 77,169	$ (7,160)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Operating activities:
Net income (loss)	$ 5,860	$ (12,500)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Provision for losses on accounts receivable	287	948
Depreciation and amortization	14,450	13,677
Loss on disposal of property and equipment	9	22
Warranty reserve	1,014	1,280
Share-based compensation	5,622	4,664
Impairment of intangible assets	3	1,095
Loss on equity method investment	265	0
Changes in operating assets and liabilities:
Accounts receivable	2,203	27,248
Inventories	7,034	(11,194)
Prepaid expenses and other assets	(796)	(4,066)
Accounts payable	3,614	4,324
Accrued liabilities	(19)	(16,343)
Deferred revenue	3,444	302
Deferred income tax	1,106	155
Net cash provided by operating activities	44,096	9,612
Investing activities:
Purchase of property and equipment	(1,967)	(6,927)
Purchase of equity method investments	(1,000)	0
Net cash used in investing activities	(2,967)	(6,927)
Financing activities:
Proceeds from stock option exercises and Employee Stock Purchase Program purchases	612	658
Repurchase of common stock	0	(10,495)
Taxes paid related to net share settlement of equity awards	(1,244)	(1,926)
Principal payments of financing lease liability	(216)	(242)
Proceeds from borrowings	0	60,000
Payments on borrowings	(57,000)	(28,000)
Net cash provided by (used in) financing activities	(57,848)	19,995
Exchange rate changes effect on cash and cash equivalents	(2,869)	(1,099)
Net increase (decrease) in cash and cash equivalents	(19,588)	21,581
Cash and cash equivalents, beginning of period	82,082	63,297
Cash and cash equivalents, end of period	62,494	84,878
Supplemental disclosure of cash flow information:
Cash paid for interest	860	1,561
Cash paid for income taxes	1,671	4,667
Non-cash investing activities:
Property and equipment included in accounts payable	35	(13)
Inventory transferred to property and equipment	588	525
Transfer of leased assets to sales-type leases	$ 13	$ 2,365

Basis of Presentation and Signi

Basis of Presentation and Significant Accounting Policies	6 Months Ended
	Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation and Significant Accounting Policies The accompanying interim condensed consolidated financial statements of Natus Medical Incorporated (“we,” “us,” or “our”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Except where noted below within Note 1, 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 our Annual Report on Form 10-K for the year ended December 31, 2020. Interim financial reports are prepared in accordance with the rules and regulations of the Securities and Exchange Commission; accordingly, the reports 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. We have made certain reclassifications to the prior period to conform to current period presentation. The consolidated balance sheet as of December 31, 2020 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 our Annual Report on Form 10-K for the year ended December 31, 2020. Operating results for the three and six months ended June 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. The accompanying condensed consolidated financial statements include our accounts and our wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Impact of COVID-19 on Our Financial Statements On March 11, 2020, the World Health Organization declared COVID-19 a global pandemic and recommended extensive containment and mitigation measures worldwide. Since that time, we established what we believe are the necessary protocols to operate safely in our manufacturing facilities, virtually engage with customers and suppliers and work remotely when possible. Our businesses continue to recover as sales in our Neuro and Newborn Care business have returned to pre-pandemic levels. Sales for our Hearing & Balance business, which are more concentrated in Europe have partially recovered, but remain below pre-pandemic levels. Various government programs have been established to provide financial relief for businesses affected by COVID-19 including the Canada Emergency Wage Subsidy ("CEWS") and Canada Emergency Rent Subsidy ("CERS") under the COVID-19 Economic Response Plan in Canada. We received $2.9 million for payroll subsidies under CEWS during the three months ended March 31, 2021. Our policy is to account for these subsidies in the same manner as an offset to the expense they relate to in the period in which we are reasonably assured to receive payment. For the six months ended June 30, 2021 we recognized reductions of $0.4 million in cost of sales, $1.3 million in marketing and selling expense, and $1.2 million in research and development expense in the condensed consolidated statements of operations for these subsidies. No payroll subsidies were received or recognized under CEWS in prior periods. As of June 30, 2021 we have collected all amounts recorded and continue to seek additional relief as applicable. We have assessed various accounting estimates and other matters, including those that require consideration of forecasted financial information, in context of the unknown future impacts of COVID-19 using information that is reasonably available to us at this time. The accounting estimates and other matters we assessed include, but were not limited to, our allowance for doubtful accounts, inventory and warranty reserves, stock-based compensation, goodwill and other long-lived assets, financial assets, valuation allowances for tax assets and revenue recognition. While based on our current assessment of these estimates there was not a material impact to our consolidated financial statements as of and for the three and six months ended June 30, 2021, as additional information becomes available to us, our future assessment of these estimates, including our expectations at the time regarding the duration, scope and severity of the pandemic, as well as other factors, could materially and adversely impact our consolidated financial statements in future reporting periods. Recently Adopted Accounting Pronouncements None.

Revenue

Revenue	6 Months Ended
	Jun. 30, 2021
Revenue from Contract with Customer [Abstract]
Revenue	Revenue Unbilled accounts receivable (“AR”) for the periods presented primarily represent the difference between revenue recognized based on the relative selling price of the related performance obligations and the contractual billing terms in the arrangements. Deferred revenue for the periods presented primarily relates to extended service contracts, installation, and training, for which the service fees are billed in advance. The associated deferred revenue is generally recognized ratably over the extended service period or when installation and training are complete. The following table summarizes the changes in the unbilled AR and deferred revenue balances for the six months ended June 30, 2021 (in thousands): Unbilled AR, December 31, 2020 $ 1,925 Additions 62 Transferred to trade receivable (61) Unbilled AR, June 30, 2021 $ 1,926 Deferred revenue, December 31, 2020 $ 25,723 Additions 17,144 Revenue recognized (13,723) Deferred revenue, June 30, 2021 $ 29,144

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jun. 30, 2021
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share The components of basic and diluted EPS, and shares excluded from the calculation of diluted loss per share because the effect would have been anti-dilutive, are as follows (in thousands, except per share amounts): Three Months Ended Six Months Ended 2021 2020 2021 2020 Net income (loss) $ 3,464 $ (8,903) $ 5,860 $ (12,500) Weighted average common shares 33,637 33,827 33,628 33,624 Dilutive effect of stock based awards 234 — 217 — Diluted shares 33,871 33,827 33,845 33,624 Basic earnings (loss) per share $ 0.10 $ (0.26) $ 0.17 $ (0.37) Diluted earnings (loss) per share $ 0.10 $ (0.26) $ 0.17 $ (0.37) Shares excluded from calculation of diluted EPS — 28 — 70

Allowance for Doubtful Accounts

Allowance for Doubtful Accounts	6 Months Ended
	Jun. 30, 2021
Credit Loss [Abstract]
Allowance for Doubtful Accounts	Allowance for Doubtful Accounts We estimate the lifetime allowance for doubtful, potentially uncollectible, accounts receivable upon their inception based on historical collection experience within the markets in which we operate, customer-specific information such as bankruptcy filings or customer liquidity problems, current conditions, and reasonable and supportable forecasts about the future. Our allowance for doubtful accounts is presented as a reduction to accounts receivable on our consolidated balance sheet. When all internal efforts have been exhausted to collect the receivable, it is written off and relieved from the reserve. The details of activity in allowance for doubtful accounts are as follows (in thousands): Three Months Ended Six Months Ended 2021 2020 2021 2020 Balance, beginning of period $ 6,085 $ 7,292 $ 6,213 $ 7,384 Additions charged to expense 186 426 287 948 Write-offs charged against allowance (141) (179) (370) (793) Balance, end of period $ 6,130 $ 7,539 $ 6,130 $ 7,539

Inventories

Inventories	6 Months Ended
	Jun. 30, 2021
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories consist of the following (in thousands): June 30, 2021 December 31, 2020 Raw materials and subassemblies $ 19,341 $ 22,583 Work in process 1,841 2,294 Finished goods 60,362 65,695 Total inventories 81,544 90,572 Less: Non-current inventories (13,194) (14,922) Inventories, current $ 68,350 $ 75,650 As of June 30, 2021 and December 31, 2020, we have classified $13.2 million and $14.9 million, respectively, of inventories as other assets. This inventory consists primarily of service components used to repair products held by customers pursuant to warranty obligations and extended service contracts, including service components for products we no longer sell, inventory purchased for lifetime buys, and inventory that is turning over at a slow rate. We believe these inventories will be utilized for their intended purpose.

Intangible Assets

Intangible Assets	6 Months Ended
	Jun. 30, 2021
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): June 30, 2021 December 31, 2020 Gross Accumulated Accumulated Net Book Gross Accumulated Accumulated Net Book Intangible assets with definite lives: Technology $ 110,953 $ (12,464) $ (67,156) $ 31,333 $ 112,138 $ (12,480) $ (64,203) $ 35,455 Customer related 93,174 (50) (55,258) 37,866 94,526 (50) (51,247) 43,229 Trade names 46,682 (3,619) (34,646) 8,417 47,058 (3,677) (31,890) 11,491 Internally developed software 13,281 — (12,937) 344 13,281 — (12,845) 436 Patents 2,767 (133) (2,634) — 2,810 (133) (2,677) — Service agreements 1,190 — (1,139) 51 1,190 — (1,119) 71 Definite-lived intangible assets $ 268,047 $ (16,266) $ (173,770) $ 78,011 $ 271,003 $ (16,340) $ (163,981) $ 90,682 Intangible assets with indefinite lives: Intellectual Property $ 2,043 $ — $ — $ 2,043 $ 2,059 $ — $ — $ 2,059 Total intangible assets $ 270,090 $ (16,266) $ (173,770) $ 80,054 $ 273,062 $ (16,340) $ (163,981) $ 92,741 Finite-lived intangible assets are amortized over their weighted average lives, which are 14 years for technology, 10 years for customer related intangibles, 7 years for trade names, 6 years for internally developed software, 13 years for patents, 2 years for service agreements and 11 years weighted average in total. Internally developed software consists of $11.1 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 Six Months Ended 2021 2020 2021 2020 Technology $ 1,778 $ 1,698 $ 3,573 $ 3,410 Customer related 2,376 2,123 4,736 4,264 Trade names 1,489 1,467 2,972 2,933 Internally developed software 42 69 92 137 Service agreements $ 10 $ 10 20 20 Total amortization $ 5,695 $ 5,367 $ 11,393 $ 10,764 The amortization expense amounts shown above include internally developed software not held for sale of $24 thousand and $48 thousand for the three and six months ended June 30, 2021, respectively, which is recorded within our income statement as a general and administrative operating expense. The amortization expense amounts shown above include internally developed software held for sale of $18 thousand and $44 thousand for the three and six months ended June 30, 2021, respectively, which is recorded within our income statement as cost of goods sold. Expected amortization expense related to definite-lived amortizable intangible assets is as follows (in thousands): Six months ending December 31, 2021 $ 10,741 2022 18,089 2023 15,317 2024 13,361 2025 12,744 2026 2,428 Thereafter 5,331 Total expected amortization expense $ 78,011

Goodwill

Goodwill	6 Months Ended
	Jun. 30, 2021
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, 2020 $ 151,299 Foreign currency translation (817) June 30, 2021 $ 150,482

Property and Equipment, net

Property and Equipment, net	6 Months Ended
	Jun. 30, 2021
Property, Plant and Equipment [Abstract]
Property and Equipment, net	Property and Equipment, net Property and equipment, net consist of the following (in thousands): June 30, 2021 December 31, 2020 Land $ 1,788 $ 1,792 Buildings 7,235 7,365 Leasehold improvements 7,443 8,050 Finance lease right-of-use assets 2,526 2,555 Equipment and furniture 20,756 22,148 Computer software and hardware 10,941 10,246 Demonstration and loaned equipment 3,649 3,086 54,338 55,242 Accumulated depreciation (30,786) (30,726) Total $ 23,552 $ 24,516

Reserve for Product Warranties

Reserve for Product Warranties	6 Months Ended
	Jun. 30, 2021
Product Warranties Disclosures [Abstract]
Reserve for Product Warranties	Reserve for Product Warranties We provide a warranty for products that is generally one year in length. In some cases, regulations may require us to provide repair or remediation beyond the typical warranty period. If any of the products contain defects, we may incur additional repair and remediation costs. Service, repair and calibration services are provided by a combination of our owned facilities and vendors on a contract basis. We accrue estimated product warranty costs at the time of sale based on historical experience. 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 June 30, 2021, we have accrued $4.8 million for product related warranties. Our estimate of these costs is primarily based upon the number of units outstanding that may require repair and costs associated with shipping. The details of activity in the warranty reserve are as follows (in thousands): Three Months Ended Six Months Ended 2021 2020 2021 2020 Balance, beginning of period $ 4,796 $ 5,837 $ 5,195 $ 6,404 Additions charged to expense 673 575 1,014 1,280 Utilizations (667) (729) (1,407) (2,001) Balance, end of period $ 4,802 $ 5,683 $ 4,802 $ 5,683 Our estimate of future product warranty costs may vary from actual product warranty costs, and any variance from estimates could impact our cost of sales, operating profits and results of operations.

Share-Based Compensation

Share-Based Compensation	6 Months Ended
	Jun. 30, 2021
Share-based Payment Arrangement [Abstract]
Share-Based Compensation	Share-Based Compensation As of June 30, 2021, we have one active share-based compensation plan, the 2021 Equity Incentive Plan. The terms of all awards granted during the six months ended June 30, 2021 and the 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, 2020. Details of share-based compensation expense are as follows (in thousands): Three Months Ended Six Months Ended 2021 2020 2021 2020 Cost of revenue $ 101 $ 75 $ 201 $ 149 Marketing and selling 526 480 1,166 949 Research and development 358 269 713 523 General and administrative 1,619 1,604 3,542 3,004 Total $ 2,604 $ 2,428 $ 5,622 $ 4,625 As of June 30, 2021, unrecognized compensation expense related to the unvested portion of stock options and other stock awards was approximately $17.9 million, which is expected to be recognized over a weighted average period of 2.4 years.

Other Income (Expense), net

Other Income (Expense), net	6 Months Ended
	Jun. 30, 2021
Other Income and Expenses [Abstract]
Other Income (Expense), net	Other Income (Expense), net Other income (expense), net consists of (in thousands): Three Months Ended Six Months Ended 2021 2020 2021 2020 Interest income $ 2 $ 8 $ 4 $ 32 Interest expense (556) (976) (1,322) (1,693) Foreign currency loss 11 217 (720) (584) Other expense (108) (6) (269) (6) Total other (expense), net $ (651) $ (757) $ (2,307) $ (2,251)

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Our tax provision for interim periods is determined using an estimated annual effective tax rate, adjusted for discrete events arising in each respective quarter. During each interim period, we update the estimated annual effective tax rate which is subject to significant volatility due to several factors, including our ability to accurately predict the income (loss) before provision for income taxes in multiple jurisdictions, the effects of acquisitions, the integration of those acquisitions, and changes in tax law. In circumstances where we are unable to predict income (loss) in multiple jurisdictions, the actual year to date effective tax rate may be the best estimate of the annual effective tax rate for purposes of determining the interim provision for income tax. We recorded income tax expense of $1.9 million and $2.4 million for the three and six months ended June 30, 2021, respectively. The effective tax rate was 35.4% and 28.8% for the three and six months ended June 30, 2021, respectively. We recorded a benefit from income tax of $3.9 million and $5.0 million for the three and six months ended June 30, 2020, respectively. The effective tax rate was 30.4% and 28.6% for the three and six months ended June 30, 2020, respectively. The increase in the effective tax rate for the three months ended June 30, 2021 compared with the three months ended June 30, 2020, is primarily attributable to changes in distribution of income among jurisdictions with varying tax rates and recording of additional reserves for uncertain tax positions related to a proposed audit assessment received in Denmark. Other significant factors impacting the current period effective tax rate included Federal and California research and development credits, non-deductible executive compensation expenses, and other discrete events. We recorded one change related to unrecognized tax benefits for the three months ended June 30, 2021 related to a proposed audit assessment received in Denmark. Within the next twelve months, it is possible that the uncertain tax positions may change with a range of approximately zero to $0.2 million. Our tax returns remain open to examination as follows: U.S Federal, 2017 through 2020, U.S. states, 2016 through 2020, and significant foreign jurisdictions, generally 2016 through 2020.

Debt and Credit Arrangements

Debt and Credit Arrangements	6 Months Ended
	Jun. 30, 2021
Debt Disclosure [Abstract]
Debt and Credit Arrangements	Debt and Credit Arrangements We have a Credit Agreement with JP Morgan Chase Bank ("JP Morgan"), Citibank, NA (“Citibank”), and Wells Fargo Bank, National Association (“Wells Fargo”). During the third quarter of 2020 we amended the terms of the Credit Agreement to extend the maturity date of the original agreement, reduce the aggregate value of the revolving facility, and amend certain covenants. The amended 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 our 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 the event has a material adverse effect. We have no other significant credit facilities. As of June 30, 2021, no amounts were outstanding under the Credit Agreement. In addition to the customary restrictive covenants listed above, the Credit Agreement also contains financial covenants that require us to maintain a certain leverage ratio and fixed charge coverage ratio, each as defined in the Credit Agreement: • Leverage Ratio, as defined, to be no higher than 3.25 to 1.00. • Interest Coverage Ratio, as defined, to be at least 1.75 to 1.00 at all times. 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, which ranges between 2.25% to 3.50%. The Credit Agreement matures on September 25, 2023, at which time all principal amounts outstanding under the Credit Agreement will be due and payable. As of June 30, 2021, we have discontinued our interest rate swap derivative. Since there are no amounts outstanding under our Credit Agreement and the termination date of the hedge is less than one quarter away with no current plans to draw, we have concluded that the cash flow hedge is not probable of occurring and discontinued the

Segment, Customer and Geographi

Segment, Customer and Geographic Information	6 Months Ended
	Jun. 30, 2021
Segment Reporting [Abstract]
Segment, Customer and Geographic Information	Segment, Customer and Geographic Information We operate in one reportable segment in which we provide medical device solutions focused on the diagnosis and treatment of central nervous and sensory system disorders for patients of all ages. End-user customer base includes hospitals, clinics, laboratories, physicians, audiologists, and governmental agencies. Most of our international sales are to distributors who resell products to end users or sub-distributors. The following tables present revenue by end market and geographic region and long-lived asset information by geographic region. Revenue is based on the destination of the shipments and long-lived assets are based on the physical location of the assets (in thousands): Three Months Ended Six Months Ended 2021 2020 2021 2020 Consolidated Revenue: United States $ 70,737 $ 51,175 $ 138,508 $ 119,513 International 45,241 33,605 92,396 74,650 Total $ 115,978 $ 84,780 $ 230,904 $ 194,163 Three Months Ended Six Months Ended 2021 2020 2021 2020 Revenue by End Market: Neuro Products Devices and Systems $ 53,945 $ 33,175 $ 107,472 $ 82,603 Supplies 16,509 10,373 32,224 26,296 Total Neuro Revenue 70,454 43,548 139,696 108,899 Newborn Care Products Devices and Systems 14,117 13,899 27,715 25,023 Supplies 8,184 8,933 16,586 18,624 Services 4,046 4,085 7,810 7,502 Total Newborn Care Revenue 26,347 26,917 52,111 51,149 Hearing & Balance Products Devices and Systems 17,782 13,599 36,540 32,159 Supplies 1,395 716 2,557 1,956 Total Hearing & Balance Revenue 19,177 14,315 39,097 34,115 Total Revenue $ 115,978 $ 84,780 $ 230,904 $ 194,163 June 30, 2021 December 31, 2020 Property and equipment, net: United States $ 10,278 $ 10,998 Ireland 6,674 6,716 Canada 3,776 3,775 Denmark 1,622 1,787 Other countries 1,202 1,240 Total $ 23,552 $ 24,516

Basis of Presentation and Sig_2

Basis of Presentation and Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	The accompanying interim condensed consolidated financial statements of Natus Medical Incorporated (“we,” “us,” or “our”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Except where noted below within Note 1, 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 our Annual Report on Form 10-K for the year ended December 31, 2020. Interim financial reports are prepared in accordance with the rules and regulations of the Securities and Exchange Commission; accordingly, the reports 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. We have made certain reclassifications to the prior period to conform to current period presentation. The consolidated balance sheet as of December 31, 2020 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 our Annual Report on Form 10-K for the year ended December 31, 2020. Operating results for the three and six months ended June 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. The accompanying condensed consolidated financial statements include our accounts and our wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
Recent Accounting Pronouncements	Recently Adopted Accounting Pronouncements None.

Revenue (Tables)

Revenue (Tables)	6 Months Ended
	Jun. 30, 2021
Revenue from Contract with Customer [Abstract]
Schedule of contract assets and liabilities	The following table summarizes the changes in the unbilled AR and deferred revenue balances for the six months ended June 30, 2021 (in thousands): Unbilled AR, December 31, 2020 $ 1,925 Additions 62 Transferred to trade receivable (61) Unbilled AR, June 30, 2021 $ 1,926 Deferred revenue, December 31, 2020 $ 25,723 Additions 17,144 Revenue recognized (13,723) Deferred revenue, June 30, 2021 $ 29,144

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2021
Earnings Per Share [Abstract]
Earnings Per Share	The components of basic and diluted EPS, and shares excluded from the calculation of diluted loss per share because the effect would have been anti-dilutive, are as follows (in thousands, except per share amounts): Three Months Ended Six Months Ended 2021 2020 2021 2020 Net income (loss) $ 3,464 $ (8,903) $ 5,860 $ (12,500) Weighted average common shares 33,637 33,827 33,628 33,624 Dilutive effect of stock based awards 234 — 217 — Diluted shares 33,871 33,827 33,845 33,624 Basic earnings (loss) per share $ 0.10 $ (0.26) $ 0.17 $ (0.37) Diluted earnings (loss) per share $ 0.10 $ (0.26) $ 0.17 $ (0.37) Shares excluded from calculation of diluted EPS — 28 — 70

Allowance for Doubtful Accoun_2

Allowance for Doubtful Accounts (Tables)	6 Months Ended
	Jun. 30, 2021
Credit Loss [Abstract]
Schedule of Allowance for Credit Losses	The details of activity in allowance for doubtful accounts are as follows (in thousands): Three Months Ended Six Months Ended 2021 2020 2021 2020 Balance, beginning of period $ 6,085 $ 7,292 $ 6,213 $ 7,384 Additions charged to expense 186 426 287 948 Write-offs charged against allowance (141) (179) (370) (793) Balance, end of period $ 6,130 $ 7,539 $ 6,130 $ 7,539

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2021
Inventory Disclosure [Abstract]
Summary of Inventories	Inventories consist of the following (in thousands): June 30, 2021 December 31, 2020 Raw materials and subassemblies $ 19,341 $ 22,583 Work in process 1,841 2,294 Finished goods 60,362 65,695 Total inventories 81,544 90,572 Less: Non-current inventories (13,194) (14,922) Inventories, current $ 68,350 $ 75,650

Intangible Assets (Tables)

Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2021
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): June 30, 2021 December 31, 2020 Gross Accumulated Accumulated Net Book Gross Accumulated Accumulated Net Book Intangible assets with definite lives: Technology $ 110,953 $ (12,464) $ (67,156) $ 31,333 $ 112,138 $ (12,480) $ (64,203) $ 35,455 Customer related 93,174 (50) (55,258) 37,866 94,526 (50) (51,247) 43,229 Trade names 46,682 (3,619) (34,646) 8,417 47,058 (3,677) (31,890) 11,491 Internally developed software 13,281 — (12,937) 344 13,281 — (12,845) 436 Patents 2,767 (133) (2,634) — 2,810 (133) (2,677) — Service agreements 1,190 — (1,139) 51 1,190 — (1,119) 71 Definite-lived intangible assets $ 268,047 $ (16,266) $ (173,770) $ 78,011 $ 271,003 $ (16,340) $ (163,981) $ 90,682 Intangible assets with indefinite lives: Intellectual Property $ 2,043 $ — $ — $ 2,043 $ 2,059 $ — $ — $ 2,059 Total intangible assets $ 270,090 $ (16,266) $ (173,770) $ 80,054 $ 273,062 $ (16,340) $ (163,981) $ 92,741
Amortization expense	Amortization expense related to intangible assets with definite lives was as follows (in thousands): Three Months Ended Six Months Ended 2021 2020 2021 2020 Technology $ 1,778 $ 1,698 $ 3,573 $ 3,410 Customer related 2,376 2,123 4,736 4,264 Trade names 1,489 1,467 2,972 2,933 Internally developed software 42 69 92 137 Service agreements $ 10 $ 10 20 20 Total amortization $ 5,695 $ 5,367 $ 11,393 $ 10,764
Expected amortization expense related to amortizable intangible assets	Expected amortization expense related to definite-lived amortizable intangible assets is as follows (in thousands): Six months ending December 31, 2021 $ 10,741 2022 18,089 2023 15,317 2024 13,361 2025 12,744 2026 2,428 Thereafter 5,331 Total expected amortization expense $ 78,011

Goodwill (Tables)

Goodwill (Tables)	6 Months Ended
	Jun. 30, 2021
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, 2020 $ 151,299 Foreign currency translation (817) June 30, 2021 $ 150,482

Property and Equipment, net (Ta

Property and Equipment, net (Tables)	6 Months Ended
	Jun. 30, 2021
Property, Plant and Equipment [Abstract]
Property and Equipment net	Property and equipment, net consist of the following (in thousands): June 30, 2021 December 31, 2020 Land $ 1,788 $ 1,792 Buildings 7,235 7,365 Leasehold improvements 7,443 8,050 Finance lease right-of-use assets 2,526 2,555 Equipment and furniture 20,756 22,148 Computer software and hardware 10,941 10,246 Demonstration and loaned equipment 3,649 3,086 54,338 55,242 Accumulated depreciation (30,786) (30,726) Total $ 23,552 $ 24,516

Reserve for Product Warranties

Reserve for Product Warranties (Tables)	6 Months Ended
	Jun. 30, 2021
Product Warranties Disclosures [Abstract]
Reserve for Product Warranties	The details of activity in the warranty reserve are as follows (in thousands): Three Months Ended Six Months Ended 2021 2020 2021 2020 Balance, beginning of period $ 4,796 $ 5,837 $ 5,195 $ 6,404 Additions charged to expense 673 575 1,014 1,280 Utilizations (667) (729) (1,407) (2,001) Balance, end of period $ 4,802 $ 5,683 $ 4,802 $ 5,683

Share-Based Compensation (Table

Share-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2021
Share-based Payment Arrangement [Abstract]
Share-Based Compensation Expense	Details of share-based compensation expense are as follows (in thousands): Three Months Ended Six Months Ended 2021 2020 2021 2020 Cost of revenue $ 101 $ 75 $ 201 $ 149 Marketing and selling 526 480 1,166 949 Research and development 358 269 713 523 General and administrative 1,619 1,604 3,542 3,004 Total $ 2,604 $ 2,428 $ 5,622 $ 4,625

Other Income (Expense), net (Ta

Other Income (Expense), net (Tables)	6 Months Ended
	Jun. 30, 2021
Other Income and Expenses [Abstract]
Other Income (Expense), net	Other income (expense), net consists of (in thousands): Three Months Ended Six Months Ended 2021 2020 2021 2020 Interest income $ 2 $ 8 $ 4 $ 32 Interest expense (556) (976) (1,322) (1,693) Foreign currency loss 11 217 (720) (584) Other expense (108) (6) (269) (6) Total other (expense), net $ (651) $ (757) $ (2,307) $ (2,251)

Segment, Customer and Geograp_2

Segment, Customer and Geographic Information (Tables)	6 Months Ended
	Jun. 30, 2021
Segment Reporting [Abstract]
Revenue and Long-lived Asset Information by Geographic Region	Revenue is based on the destination of the shipments and long-lived assets are based on the physical location of the assets (in thousands): Three Months Ended Six Months Ended 2021 2020 2021 2020 Consolidated Revenue: United States $ 70,737 $ 51,175 $ 138,508 $ 119,513 International 45,241 33,605 92,396 74,650 Total $ 115,978 $ 84,780 $ 230,904 $ 194,163 Three Months Ended Six Months Ended 2021 2020 2021 2020 Revenue by End Market: Neuro Products Devices and Systems $ 53,945 $ 33,175 $ 107,472 $ 82,603 Supplies 16,509 10,373 32,224 26,296 Total Neuro Revenue 70,454 43,548 139,696 108,899 Newborn Care Products Devices and Systems 14,117 13,899 27,715 25,023 Supplies 8,184 8,933 16,586 18,624 Services 4,046 4,085 7,810 7,502 Total Newborn Care Revenue 26,347 26,917 52,111 51,149 Hearing & Balance Products Devices and Systems 17,782 13,599 36,540 32,159 Supplies 1,395 716 2,557 1,956 Total Hearing & Balance Revenue 19,177 14,315 39,097 34,115 Total Revenue $ 115,978 $ 84,780 $ 230,904 $ 194,163 June 30, 2021 December 31, 2020 Property and equipment, net: United States $ 10,278 $ 10,998 Ireland 6,674 6,716 Canada 3,776 3,775 Denmark 1,622 1,787 Other countries 1,202 1,240 Total $ 23,552 $ 24,516

Basis of Presentation and Sig_3

Basis of Presentation and Significant Accounting Policies (Details) - COVID-19 $ in Millions	3 Months Ended
	Mar. 31, 2021USD ($)
Unusual or Infrequent Item, or Both [Line Items]
Income from Canada Emergency Wage Subsidy (CEWS)	$ 2.9
Cost of sales
Unusual or Infrequent Item, or Both [Line Items]
Income from Canada Emergency Wage Subsidy (CEWS)	0.4
Marketing and selling expense
Unusual or Infrequent Item, or Both [Line Items]
Income from Canada Emergency Wage Subsidy (CEWS)	1.3
Research and development expense
Unusual or Infrequent Item, or Both [Line Items]
Income from Canada Emergency Wage Subsidy (CEWS)	$ 1.2

Basis of Presentation and Sig_4

Basis of Presentation and Significant Accounting Policies - Schedule of Contract Assets and Liabilities (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2021USD ($)
Contract with Customer, Asset and Liability [Abstract]
Deferred Revenue	$ 29,144
Change In Contract With Customer, Liability [Roll Forward]
Deferred Revenue, December 31, 2018	25,723
Additions	17,144
Revenue Recognized	(13,723)
Deferred Revenue, March 31, 2019	29,144
Unbilled AR
Contract with Customer, Asset and Liability [Abstract]
Contract Assets	1,926
Change In Contract With Customer, Asset [Roll Forward]
Unbilled AR, December 31, 2018	1,925
Additions	62
Transferred to Trade Receivable	61
Unbilled AR, March 31, 2019	$ 1,926

Basis of Presentation and Sig_5

Basis of Presentation and Significant Accounting Policies - Narrative for Revenue Recognition (Details) $ in Millions	Jun. 30, 2021USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Short-term contract liability	$ 24.4
Long-term contract liability	4.7
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 15.9
Expected timing of satisfaction for remaining performance obligation	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 10.1
Expected timing of satisfaction for remaining performance obligation	2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 1.7
Expected timing of satisfaction for remaining performance obligation	3 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 1
Expected timing of satisfaction for remaining performance obligation	4 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 0.4
Expected timing of satisfaction for remaining performance obligation

Revenue - Narrative (Details)

Revenue - Narrative (Details) $ in Millions	Jun. 30, 2021USD ($)
Revenue from Contract with Customer [Abstract]
Short-term contract liability	$ 24.4
Long-term contract liability	4.7
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 15.9
Expected timing of satisfaction for remaining performance obligation	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 10.1
Expected timing of satisfaction for remaining performance obligation	2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 1.7
Expected timing of satisfaction for remaining performance obligation	3 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 1
Expected timing of satisfaction for remaining performance obligation	4 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 0.4
Expected timing of satisfaction for remaining performance obligation

Revenue - Unbilled AR and Defer

Revenue - Unbilled AR and Deferred Revenue (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2021USD ($)
Movement in Deferred Revenue [Roll Forward]
Deferred Revenue, December 31, 2018	$ 25,723
Additions	17,144
Revenue Recognized	(13,723)
Deferred Revenue, March 31, 2019	29,144
Unbilled AR
Movement in Unbilled AR [Roll Forward]
Unbilled AR, December 31, 2018	1,925
Additions	62
Transferred to trade receivable	(61)
Unbilled AR, March 31, 2019	$ 1,926

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020
Earnings Per Share [Abstract]
Net income (loss)	$ 3,464	$ 2,396	$ (8,903)	$ (3,597)	$ 5,860	$ (12,500)
Weighted average common shares (in shares)	33,637		33,827		33,628	33,624
Dilutive effect of stock based awards (in shares)	234		0		217	0
Diluted Shares (in shares)	33,871		33,827		33,845	33,624
Basic earnings per share (dollars per share)	$ 0.10		$ (0.26)		$ 0.17	$ (0.37)
Diluted earnings per share (dollars per share)	$ 0.10		$ (0.26)		$ 0.17	$ (0.37)
Diluted earnings per share (in shares)	0		28		0	70

Allowance for Doubtful Accoun_3

Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	$ 6,085	$ 7,292	$ 6,213	$ 7,384
Additions charged to expense	186	426	287	948
Write-offs charged against allowance	(141)	(179)	(370)	(793)
Balance, end of period	$ 6,130	$ 7,539	$ 6,130	$ 7,539

Inventories - Schedule of Inven

Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Summary of Inventories
Raw materials and subassemblies	$ 19,341	$ 22,583
Work in process	1,841	2,294
Finished goods	60,362	65,695
Total inventories	81,544	90,572
Less: Non-current inventories	(13,194)	(14,922)
Inventories, current	$ 68,350	$ 75,650

Inventories - Narrative (Detail

Inventories - Narrative (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Noncurrent inventories	$ 13,194	$ 14,922

Intangible Assets - Components

Intangible Assets - Components of Gross and Net Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Intangible assets with definite lives:
Gross Carrying Amount	$ 268,047	$ 271,003
Accumulated Impairment	(16,266)	(16,340)
Accumulated Amortization	(173,770)	(163,981)
Net Book Value	78,011	90,682
Intangible assets with indefinite lives:
Gross Carrying Amount	270,090	273,062
Accumulated Impairment	(16,266)	(16,340)
Net Book Value	80,054	92,741
Intellectual Property
Intangible assets with indefinite lives:
Gross Carrying Amount	2,043	2,059
Accumulated Impairment	0	0
Net Book Value	2,043	2,059
Technology
Intangible assets with definite lives:
Gross Carrying Amount	110,953	112,138
Accumulated Impairment	(12,464)	(12,480)
Accumulated Amortization	(67,156)	(64,203)
Net Book Value	31,333	35,455
Customer related
Intangible assets with definite lives:
Gross Carrying Amount	93,174	94,526
Accumulated Impairment	(50)	(50)
Accumulated Amortization	(55,258)	(51,247)
Net Book Value	37,866	43,229
Trade names
Intangible assets with definite lives:
Gross Carrying Amount	46,682	47,058
Accumulated Impairment	(3,619)	(3,677)
Accumulated Amortization	(34,646)	(31,890)
Net Book Value	8,417	11,491
Internally developed software
Intangible assets with definite lives:
Gross Carrying Amount	13,281	13,281
Accumulated Impairment	0	0
Accumulated Amortization	(12,937)	(12,845)
Net Book Value	344	436
Patents
Intangible assets with definite lives:
Gross Carrying Amount	2,767	2,810
Accumulated Impairment	(133)	(133)
Accumulated Amortization	(2,634)	(2,677)
Net Book Value	0	0
Service agreements
Intangible assets with definite lives:
Gross Carrying Amount	1,190	1,190
Accumulated Impairment	0	0
Accumulated Amortization	(1,139)	(1,119)
Net Book Value	$ 51	$ 71

Intangible Assets - Narrative (

Intangible Assets - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life (in years)			11 years
Total amortization	$ 5,695	$ 5,367	$ 11,393	$ 10,764
Technology
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life (in years)			14 years
Total amortization	1,778	1,698	$ 3,573	3,410
Customer related
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life (in years)			10 years
Total amortization	2,376	2,123	$ 4,736	4,264
Trade names
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life (in years)			7 years
Total amortization	1,489	1,467	$ 2,972	2,933
Internally developed software
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life (in years)			6 years
Costs incurred for development of internal use computer software	11,100		$ 11,100
Costs incurred for development of software to be sold	2,200		2,200
Total amortization	42	69	$ 92	137
Patents
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life (in years)			13 years
Service agreements
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life (in years)			2 years
Total amortization	10	10	$ 20	20
General and administrative | Internally developed software
Acquired Finite-Lived Intangible Assets [Line Items]
Total amortization	$ 24		$ 48
General and administrative | Internally developed software | Assets held for sale
Acquired Finite-Lived Intangible Assets [Line Items]
Total amortization		$ 18		$ 44

Intangible Assets - Schedule of

Intangible Assets - Schedule of Amortization Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Finite-Lived Intangible Assets [Line Items]
Total amortization	$ 5,695	$ 5,367	$ 11,393	$ 10,764
Technology
Finite-Lived Intangible Assets [Line Items]
Total amortization	1,778	1,698	3,573	3,410
Customer related
Finite-Lived Intangible Assets [Line Items]
Total amortization	2,376	2,123	4,736	4,264
Trade names
Finite-Lived Intangible Assets [Line Items]
Total amortization	1,489	1,467	2,972	2,933
Internally developed software
Finite-Lived Intangible Assets [Line Items]
Total amortization	42	69	92	137
Service agreements
Finite-Lived Intangible Assets [Line Items]
Total amortization	$ 10	$ 10	$ 20	$ 20

Intangible Assets - Schedule _2

Intangible Assets - Schedule of Expected Amortization Expense (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Expected annual amortization expense related to amortizable intangible assets
Six months ending December 31, 2021	$ 10,741
2019	18,089
2020	15,317
2021	13,361
2022	12,744
2023	2,428
Thereafter	5,331
Net Book Value	$ 78,011	$ 90,682

Goodwill (Details)

Goodwill (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2021USD ($)
Carrying amount of goodwill
44196	$ 151,299
Foreign currency translation	(817)
44377	$ 150,482

Property and Equipment, net (De

Property and Equipment, net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 54,338		$ 54,338		$ 55,242
Finance Lease, Right-of-Use Asset	2,526		2,526		2,555
Accumulated depreciation	(30,786)		(30,786)		(30,726)
Total	23,552		23,552		24,516
Depreciation	1,500	$ 1,600	3,000	$ 3,200
Depreciation	1,500	$ 1,600	3,000	$ 3,200
Land
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,788		1,788		1,792
Buildings
Property, Plant and Equipment [Line Items]
Property and equipment, gross	7,235		7,235		7,365
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	7,443		7,443		8,050
Equipment and furniture
Property, Plant and Equipment [Line Items]
Property and equipment, gross	20,756		20,756		22,148
Computer software and hardware
Property, Plant and Equipment [Line Items]
Property and equipment, gross	10,941		10,941		10,246
Demonstration and loaned equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 3,649		$ 3,649		$ 3,086

Reserve for Product Warrantie_2

Reserve for Product Warranties - Narrative (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019
Product Warranties Disclosures [Abstract]
Product warranty period (in years)	1 year
Product Liability Contingency [Line Items]
Accrual of estimated costs	$ 4,802	$ 4,796	$ 5,195	$ 5,683	$ 5,837	$ 6,404

Reserve for Product Warrantie_3

Reserve for Product Warranties - Schedule of Warranty Reserve (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Reserve for Product Warranties
Balance, beginning of period	$ 4,796	$ 5,837	$ 5,195	$ 6,404
Additions charged to expense	673	575	1,014	1,280
Utilizations	(667)	(729)	(1,407)	(2,001)
Balance, end of period	$ 4,802	$ 5,683	$ 4,802	$ 5,683

Share-Based Compensation - Narr

Share-Based Compensation - Narrative (Details) $ in Millions	6 Months Ended
	Jun. 30, 2021USD ($)plan
Share-based Payment Arrangement [Abstract]
Number of active share based compensation plans | plan	1
Unrecognized compensation expense related to unvested portion of stock options | $	$ 17.9
Weighted average period of recognition of unrecognized compensation expense	2 years 4 months 24 days

Share-Based Compensation - Sche

Share-Based Compensation - Schedule of Share-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 2,604	$ 2,428	$ 5,622	$ 4,625
Cost of revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	101	75	201	149
Marketing and selling
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	526	480	1,166	949
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	358	269	713	523
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 1,619	$ 1,604	$ 3,542	$ 3,004

Other Income (Expense), net (De

Other Income (Expense), net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Other expense, net
Interest income	$ 2	$ 8	$ 4	$ 32
Interest expense	(556)	(976)	(1,322)	(1,693)
Foreign currency loss	11	217	(720)	(584)
Other expense	(108)	(6)	(269)	(6)
Total other (expense), net	$ (651)	$ (757)	$ (2,307)	$ (2,251)

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Provision for (benefit from) income taxes	$ 1,899,000	$ (3,891,000)	$ 2,368,000	$ (5,018,000)
Effective income tax rate	35.40%	30.40%	28.80%	28.60%
Minimum
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Possible of uncertain tax benefit within the next twelve months	$ 0		$ 0
Maximum
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Possible of uncertain tax benefit within the next twelve months	$ 200,000		$ 200,000

Debt and Credit Arrangements -

Debt and Credit Arrangements - Narrative (Details) - Citibank, National Association - Revolving Credit Facility	6 Months Ended
	Jun. 30, 2021USD ($)
Line of Credit Facility [Line Items]
Aggregate secured revolving credit facility	$ 150,000,000
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%
Maximum
Line of Credit Facility [Line Items]
Leverage Ratio	3.25
Maximum | LIBOR rate
Line of Credit Facility [Line Items]
Interest rate	350.00%
Minimum
Line of Credit Facility [Line Items]
Interest Coverage Ratio	1.75
Minimum | LIBOR rate
Line of Credit Facility [Line Items]
Interest rate	225.00%

Segment, Customer and Geograp_3

Segment, Customer and Geographic Information - Narrative (Details)	6 Months Ended
	Jun. 30, 2021segment
Segment Reporting [Abstract]
Number of reportable segments (segments)	1

Segment, Customer and Geograp_4

Segment, Customer and Geographic Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Consolidated Revenue:
Revenue	$ 115,978	$ 84,780	$ 230,904	$ 194,163
Revenue by End Market:
Total Revenue	115,978	84,780	230,904	194,163
Property and equipment, net:
Property and equipment, net	23,552		23,552		$ 24,516
Neuro Products
Revenue by End Market:
Total Revenue	70,454	43,548	139,696	108,899
Neuro Products | Devices and Systems
Revenue by End Market:
Total Revenue	53,945	33,175	107,472	82,603
Neuro Products | Supplies
Revenue by End Market:
Total Revenue	16,509	10,373	32,224	26,296
Newborn Care Products
Revenue by End Market:
Total Revenue	26,347	26,917	52,111	51,149
Newborn Care Products | Devices and Systems
Revenue by End Market:
Total Revenue	14,117	13,899	27,715	25,023
Newborn Care Products | Supplies
Revenue by End Market:
Total Revenue	8,184	8,933	16,586	18,624
Newborn Care Products | Services
Revenue by End Market:
Total Revenue	4,046	4,085	7,810	7,502
Hearing & Balance Products
Revenue by End Market:
Total Revenue	19,177	14,315	39,097	34,115
Hearing & Balance Products | Devices and Systems
Revenue by End Market:
Total Revenue	17,782	13,599	36,540	32,159
Hearing & Balance Products | Supplies
Revenue by End Market:
Total Revenue	1,395	716	2,557	1,956
United States
Consolidated Revenue:
Revenue	70,737	51,175	138,508	119,513
Property and equipment, net:
Property and equipment, net	10,278		10,278		10,998
International
Consolidated Revenue:
Revenue	45,241	$ 33,605	92,396	$ 74,650
Property and equipment, net:
Property and equipment, net	1,202		1,202		1,240
Canada
Property and equipment, net:
Property and equipment, net	3,776		3,776		3,775
Denmark
Property and equipment, net:
Property and equipment, net	1,622		1,622		1,787
Long-Lived Assets	$ 6,674		$ 6,674		$ 6,716