Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 5-May-14 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'NATUS MEDICAL INC | ' |
Entity Central Index Key | '0000878526 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 32,142,534 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (unaudited) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $59,589 | $56,106 |
Accounts receivable, net of allowance for doubtful accounts of $3,618 in 2014 and $2,962 in 2013 | 79,933 | 82,110 |
Inventories | 35,455 | 37,685 |
Prepaid expenses and other current assets | 14,218 | 11,904 |
Deferred income tax | 9,055 | 8,956 |
Total current assets | 198,250 | 196,761 |
Property and equipment, net | 21,530 | 23,295 |
Intangible assets | 98,141 | 98,820 |
Goodwill | 100,929 | 97,238 |
Other assets | 10,441 | 10,324 |
Total assets | 429,291 | 426,438 |
Current liabilities: | ' | ' |
Accounts payable | 26,057 | 29,777 |
Current portion of long-term debt | 10,437 | 10,517 |
Accrued liabilities | 25,750 | 26,831 |
Deferred revenue | 11,775 | 12,946 |
Total current liabilities | 74,019 | 80,071 |
Long-term liabilities: | ' | ' |
Long-term debt, net of current portion | 22,500 | 27,500 |
Other liabilities | 3,207 | 2,845 |
Deferred income tax | 9,748 | 9,704 |
Total liabilities | 109,474 | 120,120 |
Stockholders' equity: | ' | ' |
Common Stock, $0.001 par value, 120,000,000 shares authorized; shares issued and outstanding 32,102,547 in 2014 and 31,401,602 in 2013 | 302,109 | 292,055 |
Retained earnings | 40,767 | 34,516 |
Accumulated other comprehensive loss | -23,059 | -20,253 |
Total stockholders' equity | 319,817 | 306,318 |
Total liabilities and stockholders' equity | $429,291 | $426,438 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (unaudited) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Condensed Consolidated Balance Sheets [Abstract] | ' | ' |
Allowance for doubtful accounts | $3,618 | $2,962 |
Common Stock, par value | $0.00 | $0.00 |
Common Stock, shares authorized | 120,000,000 | 120,000,000 |
Common Stock, shares issued | 32,102,547 | 31,401,602 |
Common Stock, shares outstanding | 32,102,547 | 31,401,602 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) [Abstract] | ' | ' |
Revenue | $85,624 | $85,834 |
Cost of revenue | 35,733 | 36,601 |
Gross profit | 49,891 | 49,233 |
Operating expenses: | ' | ' |
Marketing and selling | 21,422 | 22,196 |
Research and development | 7,508 | 8,212 |
General and administrative | 12,280 | 13,966 |
Total operating expenses | 41,210 | 44,374 |
Income from operations | 8,681 | 4,859 |
Other income (expense), net | 312 | -334 |
Income before provision for income tax | 8,993 | 4,525 |
Provision for income tax expense | 2,742 | 1,083 |
Net income | 6,251 | 3,442 |
Foreign currency translation adjustment | -2,891 | -2,331 |
Comprehensive income | $3,360 | $1,111 |
Earnings (loss) per share: | ' | ' |
Basic | $0.20 | $0.12 |
Diluted | $0.19 | $0.11 |
Weighted average shares used in the calculation of earnings (loss) per share: | ' | ' |
Basic | 31,062 | 29,570 |
Diluted | 32,185 | 30,319 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Operating activities: | ' | ' |
Net income | $6,251 | $3,442 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 3,302 | 3,133 |
Provision for losses on accounts receivable | 465 | 372 |
Warranty reserve | 390 | 656 |
Loss on disposal of property and equipment | ' | 6 |
Share-based compensation | 1,609 | 1,360 |
Excess tax benefit on the exercise of stock options | -2,194 | -81 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 708 | -787 |
Inventories | 1,633 | 64 |
Prepaid expenses and other assets | -1,936 | 734 |
Accounts payable | -2,710 | -3,302 |
Deferred income tax | 1,844 | -304 |
Accrued liabilities and deferred revenue | -3,678 | -6,228 |
Net cash provided by (used in) operating activities | 5,684 | -935 |
Investing activities: | ' | ' |
Acquisition of businesses, net of cash acquired | -4,925 | -18,600 |
Purchases of property and equipment | -806 | -687 |
Purchase of intangible assets | ' | -669 |
Net cash used in investing activities | -5,766 | -19,956 |
Financing activities: | ' | ' |
Proceeds from stock option exercises and ESPP purchases | 35 | 2,115 |
Excess tax benefit on the exercise of stock options | 2,194 | 81 |
Proceeds from short-term borrowings | ' | 22,000 |
Payments on borrowings | -5,079 | -2,142 |
Net cash provided by financing activities | 3,415 | 22,054 |
Exchange rate changes effect on cash and cash equivalents | 150 | 134 |
Net increase (decrease) in cash and cash equivalents | 3,483 | 1,297 |
Cash and cash equivalents, beginning of period | 56,106 | 23,057 |
Cash and cash equivalents, end of period | 59,589 | 24,354 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid for interest | 186 | 613 |
Cash paid for income taxes | 574 | 4,214 |
Non-cash investing activities: | ' | ' |
Property and equipment included in accounts payable | 265 | 261 |
Inventory transferred to property and equipment | $398 | ' |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2014 | |
Basis of Presentation [Abstract] | ' |
Basis of Presentation | ' |
1 - 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, 2013. | |
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, but 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 condensed consolidated balance sheet as of December 31, 2013 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, 2013. | |
Operating results for the three months ended March 31, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. 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 | |
Recently issued FASB guidance and Securities and Exchange Commission (“SEC”) Staff Accounting Bulletins have either been implemented, with no significant effect, or are not applicable to the Company. |
Business_Combinations
Business Combinations | 3 Months Ended | ||
Mar. 31, 2014 | |||
Business Combinations [Abstract] | ' | ||
Business Combinations | ' | ||
2 - Business Combinations | |||
Grass Technologies | |||
On February 2, 2013, we completed an asset purchase of the Grass Technologies Product Group (“Grass”) from Astro-Med Inc. for a total cash consideration of $21.0 million pursuant to purchase agreement. Included in the total cash consideration is an adjustment of $2.4 million made in the first quarter of 2014 for inventory purchase committments. Grass manufactures and sells clinically differentiated neurodiagnostic and monitoring products, including a portfolio of electroencephalography (EEG) and polysomnography (PSG) systems for both clinical and research use and related accessories and proprietary electrodes. The acquisition strengthened the Company’s existing neurology portfolio and provided new product categories. A total of $624,000 of direct costs associated with the acquisition was expensed as incurred and reported as a component of general and administrative expenses. | |||
The Company has accounted for the acquisition as a business combination. Under the acquisition method of accounting, the assets acquired and liabilities assumed from Grass are recorded in the consolidated financial statements at their respective fair values as of the acquisition date. The excess of the purchase price over the fair value of the acquired net assets has been recorded as goodwill. Grass’s results of operations are included in our consolidated financial statements as of February 2, 2013, the date of the acquisition. | |||
Valuing certain components of the acquisition required us to make significant estimates. In the first quarter of 2014, the remaining information was obtained requiring adjustments to these estimates. The final adjustments in the first quarter of 2014 resulted in an adjustment to the preliminary purchase price allocation, with an offsetting adjustment to goodwill. These adjustments were deemed immaterial and as a result our financial statements were not adjusted retrospectively. | |||
Approximately $7.0 million has been allocated to goodwill. Goodwill is calculated as the difference between the acquisition date fair value of the consideration transferred and the values assigned to the assets acquired and liabilities assumed and represent primarily the expected synergies of combining the operations of the Company and the Grass business. None of the goodwill is expected to be deductible for tax purposes. In accordance with ASC 350-20, goodwill will not be amortized but instead will be tested for impairment at least annually (more frequently if certain indicators are present). | |||
Pro forma financial information | |||
The following unaudited pro forma information combining results of operations of the Company for the three months ended March 31, 2014 and 2013 are presented as if the acquisition of Grass had occurred on January 1, 2013: | |||
Unaudited Pro forma Financial Information | |||
(in thousands) | |||
Three Months Ended March 31, 2013 | |||
Revenue | $86,839 | ||
Income from operations | $5,239 | ||
The unaudited pro forma financial information is provided for comparative purposes only and is not necessarily indicative of what actual results would have been had the acquisitions occurred on the dates indicated, nor does it give effect to synergies, cost savings, and other changes expected to result from the acquisitions. Accordingly, the pro forma financial results do not purport to be indicative of results of operations as of the date hereof, for any period ended on the date hereof, or for any other future date or period. | |||
For purposes of preparing the unaudited pro forma financial information for the period January 1, 2013 through March 31, 2013, Grass’ statement of operations for the period from January 1, 2013 to February 1, 2013 was combined with our consolidated statement of operations and comprehensive income (loss) for the three months ended March 31, 2013. | |||
The unaudited pro forma consolidated results for the three month period ended March 31, 2013 reflect the historical information of Natus and Grass, adjusted for the following pre-tax amounts: | |||
Additional amortization expense of $59,300 related to the fair value of identifiable intangible assets acquired; | |||
Decrease of depreciation expense of $14,800 related to the fair value adjustment to property and equipment acquired; | |||
Decrease in general and administrative expense of $624,000 related to the direct acquisition costs that were recorded in the unaudited pro forma financial information in the three months ended March 31, 2013. | |||
Hearing Screening as a Service | |||
In the first quarter of 2014, the company entered into two asset purchase agreements for companies in the newborn hearing screening services market for a total consideration of $3.6 million. The first, Tender Touch Infant Hearing (“Tender Touch”), was acquired on January 16, 2014, and the second, Hearing Health Consultants LLC (“HHC”), was acquired on March 10, 2014. Both acquisitions support the Company’s objective to enter this market that complements our hearing business. |
Basic_and_Diluted_Earnings_Per
Basic and Diluted Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2014 | |
Basic and Diluted Earnings Per Common Share [Abstract] | ' |
Basic and Diluted Earnings Per Common Share | ' |
3 - Basic and Diluted Earnings Per Common Share | |
Basic earnings per share is based upon the weighted average number of common shares outstanding during the period. Diluted earnings per share is based upon the weighted average number of common shares outstanding and dilutive common stock equivalents outstanding during the period. Common stock equivalents are options granted and shares of restricted stock issued under our stock awards plans and are calculated under the treasury stock method. Common equivalent shares from unexercised stock options and unvested restricted stock are excluded from the computation when there is a loss as their effect is anti-dilutive or if the exercise price of such unexercised options is greater than the average market price of the stock for the period. | |
For the three months ended March 31, 2014, common stock equivalents of 1,123,806 shares were included in the weighted average shares outstanding used to calculate diluted earnings per share, while common stock equivalents of 229,990 shares were excluded from the calculation of diluted earnings per share because the exercise price of the underlying options was greater than the average market price of the stock for the period. |
Inventories
Inventories | 3 Months Ended | ||
Mar. 31, 2014 | |||
Inventories [Abstract] | ' | ||
Inventories | ' | ||
4 - Inventories | |||
Inventories consist of the following (in thousands): | |||
31-Mar-14 | 31-Dec-13 | ||
Raw materials and subassemblies | $21,381 | $24,312 | |
Work in process | 2,053 | 2,584 | |
Finished goods | 19,731 | 17,861 | |
Total inventories | 43,165 | 44,757 | |
Less: Non-current inventories | -7,710 | -7,072 | |
Inventories, current | $35,455 | $37,685 | |
At March 31, 2014 and December 31, 2013, the Company has classified $7.7 million and $7.1 million respectively, of inventories, as non-current other assets. This inventory consists primarily of service components used to repair products pursuant to warranty obligations and extended service contracts, including service components for products we are not currently selling. Management believes that these inventories will be utilized for their intended purpose. |
Intangible_Assets
Intangible Assets | 3 Months Ended | |||||||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||||||
Intangible Assets / Goodwill [Abstract] | ' | |||||||||||||||||||||||||||||
Intangible Assets | ' | |||||||||||||||||||||||||||||
5 – Intangible Assets | ||||||||||||||||||||||||||||||
The following table summarizes the components of gross and net intangible asset balances (in thousands): | ||||||||||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | |||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Impairment | Accumulated Amortization | Net Book Value | Gross Carrying Amount | Accumulated Impairment | Accumulated Amortization | Net Book Value | |||||||||||||||||||||||
Intangible assets with definite lives: | ||||||||||||||||||||||||||||||
Technology | $65,746 | -- | ($26,965) | )11 | $38,781 | $65,904 | -- | ($25,519) | $40,385 | |||||||||||||||||||||
Customer related | 32,278 | -- | -10,293 | 21,985 | 31,231 | -- | -9,763 | 21,468 | ||||||||||||||||||||||
Internally developed software | 11,917 | -- | -5,395 | 6,522 | 11,069 | -- | -5,107 | 5,962 | ||||||||||||||||||||||
Patents | 2,723 | -- | -2,121 | 602 | 2,724 | -- | -2,094 | 630 | ||||||||||||||||||||||
Backlog | 722 | -- | -722 | -- | 722 | -- | -722 | -- | ||||||||||||||||||||||
Definite-lived intangible assets | 113,386 | -45,496 | 67,890 | 111,650 | -- | -43,205 | 68,445 | |||||||||||||||||||||||
Intangible assets with indefinite lives: | ||||||||||||||||||||||||||||||
Tradenames | 33,311 | -3,060 | -- | 30,251 | 33,435 | -3,060 | -- | 30,375 | ||||||||||||||||||||||
Total Intangibles | $146,697 | ($3,060) | ($45,496) | $98,141 | $145,085 | ($3,060) | ($43,205) | $98,820 | ||||||||||||||||||||||
Definite-lived intangible assets are amortized over their weighted average lives of 15 years for technology, 12 years for customer related intangibles, 7 years for internally developed software, and 14 years for patents. Intangible assets with indefinite lives are not subject to amortization. | ||||||||||||||||||||||||||||||
Internally developed software consists of $10.4 million relating to costs incurred for development of internal use computer software and $1.5 million for development of software to be sold. | ||||||||||||||||||||||||||||||
Amortization expense related to intangible assets with definite lives was as follows (in thousands): | ||||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||
Technology | $1,096 | $963 | ||||||||||||||||||||||||||||
Customer Related | 647 | 601 | ||||||||||||||||||||||||||||
Internally developed software | 288 | 239 | ||||||||||||||||||||||||||||
Patents | 30 | 20 | ||||||||||||||||||||||||||||
Total amortization | $2,061 | $1,823 | ||||||||||||||||||||||||||||
Expected amortization expense related to amortizable intangible assets is as follows (in thousands): | ||||||||||||||||||||||||||||||
Nine months ending December 31, 2014 | $ | 5,965 | ||||||||||||||||||||||||||||
2015 | 7,736 | |||||||||||||||||||||||||||||
2016 | 6,863 | |||||||||||||||||||||||||||||
2017 | 6,502 | |||||||||||||||||||||||||||||
2018 | 6,236 | |||||||||||||||||||||||||||||
2019 | 5,333 | |||||||||||||||||||||||||||||
Thereafter | 29,255 | |||||||||||||||||||||||||||||
Total expected amortization expense | $ | 67,890 | ||||||||||||||||||||||||||||
Goodwill
Goodwill | 3 Months Ended | |
Mar. 31, 2014 | ||
Intangible Assets / Goodwill [Abstract] | ' | |
Goodwill | ' | |
6 – Goodwill | ||
The carrying amount of goodwill and the changes in those balances are as follows (in thousands): | ||
As of December 31, 2013 | $97,238 | |
Acquisitions/Purchase Accounting Adjustments | 4,001 | |
Foreign currency translation | -310 | |
As of March 31, 2014 | $100,929 | |
Property_and_Equipment_net
Property and Equipment, net | 3 Months Ended | ||
Mar. 31, 2014 | |||
Property and Equipment, net [Abstract] | ' | ||
Property and Equipment, net | ' | ||
7 - Property and Equipment, net | |||
Property and equipment, net consist of the following (in thousands): | |||
31-Mar-14 | 31-Dec-13 | ||
Land | $4,023 | $4,152 | |
Buildings | 9,490 | 10,269 | |
Leasehold improvements | 2,795 | 2,789 | |
Office furniture and equipment | 10,920 | 10,719 | |
Computer software and hardware | 9,869 | 9,362 | |
Demonstration and loaned equipment | 9,557 | 10,320 | |
46,654 | 47,611 | ||
Accumulated depreciation and amortization | -25,124 | -24,316 | |
Total | $21,530 | $23,295 | |
Depreciation and amortization expense of property and equipment was approximately $1.2 million for the three months ended March 31, 2014, and was approximately $1.1 million for the three months ended March 31, 2013. |
Reserve_for_Product_Warranties
Reserve for Product Warranties | 3 Months Ended | ||
Mar. 31, 2014 | |||
Reserve for Product Warranties [Abstract] | ' | ||
Reserve for Product Warranties | ' | ||
8 - Reserve for Product Warranties | |||
We provide a warranty on all medical device products that is generally one year in length. We also sell extended service agreements on our medical device products that are generally over one year in length. Service for domestic customers is provided by Company-owned service centers that perform all service, repair, and calibration services. Service for international customers is provided by a combination of Company-owned facilities and vendors on a contract basis. | |||
We have accrued a warranty reserve, included in accrued liabilities on the accompanying balance sheets, for the expected future costs of servicing products during the initial warranty period. We base the liability on actual warranty costs incurred to service those products. On new products, additions to the reserve are based on a combination of factors including the percentage of service department labor applied to warranty repairs, as well as actual service department costs, and other judgments, such as the degree to which the product incorporates new technology. The reserve is reduced as costs are incurred to honor existing warranty obligations. | |||
The details of activity in the warranty reserve are as follows (in thousands): | |||
Three Months Ended March 31, | |||
2014 | 2013 | ||
Balance, beginning of period | $3,143 | $2,260 | |
Acquisition warranty assumed | -- | 191 | |
Warranty accrued for the period | 390 | 656 | |
Repairs for the period | -522 | -464 | |
Balance, end of period | $3,011 | $2,643 | |
ShareBased_Compensation
Share-Based Compensation | 3 Months Ended | ||
Mar. 31, 2014 | |||
Share-Based Compensation [Abstract] | ' | ||
Share-Based Compensation | ' | ||
9 - Share-Based Compensation | |||
At March 31, 2014, we have two active plans that give rise to share-based compensation, the 2011 Stock Awards Plan and the 2011 Employee Stock Purchase Plan. The terms of awards granted during the three months ended March 31, 2014 and our methods for determining grant-date fair value of the awards were consistent with those described in the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2013. | |||
Detail of share-based compensation expense is as follows (in thousands): | |||
Three Months Ended March 31, | |||
2014 | 2013 | ||
Cost of revenue | $28 | $59 | |
Marketing and sales | 235 | 271 | |
Research and development | 146 | 117 | |
General and administrative | 1,199 | 913 | |
Total | $1,609 | $1,360 | |
As of March 31, 2014, unrecognized compensation expense related to the unvested portion of our stock options and other stock awards was approximately $16.5 million, which is expected to be recognized over a weighted average period of 2.8 years. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2014 | |
Income Taxes [Abstract] | ' |
Income Taxes | ' |
10 - Income Taxes | |
Provision for Income Tax Expense | |
We recorded provisions for income tax of $2.7 million and $1.1 million for the three months ended March 31, 2014 and 2013, respectively. Our effective tax rate was 30.5% and 23.9% for the three month period ended March 31, 2014 and 2013, respectively. | |
Our effective tax rate for the three months ended March 31, 2014 differed from statutory tax rates primarily because of profits taxed in foreign jurisdictions with lower tax rates than the statutory rate. Several temporary tax provisions including research and development tax credits and tax relief provisions to foreign income were expired on December 31 2013 as a part of the America Taxpayer Relief of 2012, which resulted in a higher effective tax rate for the three months ended March 31, 2014 compared with the effective tax rate for the three months ended ended March 31, 2013. | |
Our effective tax rate for the three months ended March 31, 2013 differed from statutory tax rates primarily because of profits taxed in foreign jurisdictions with lower tax rates than the statutory rate and tax benefits of approximately $340,000 derived from the recognition of the 2012 federal research and development tax credit by enactment of the American Taxpayer Relief Act of 2012 in January 2013. | |
We recorded a tax expense of $114,000 for new unrecognized tax benefits for the three months ended March 31, 2014. Included in the balance of unrecognized tax benefits on March 31, 2004 is $585,000 related to the tax position for which it is reasonably possible that the total amount could change during the next twelve months, | |
Our tax returns remain open to examination as follows: U.S. Federal, 2010 through 2013, U.S. States 2009 through 2013 and significant foreign jurisdictions, 2009 through 2013. |
Restructuring_Reserves
Restructuring Reserves | 3 Months Ended | ||
Mar. 31, 2014 | |||
Restructuring Reserves [Abstract] | ' | ||
Restructuring Reserves | ' | ||
11 - Restructuring Reserves | |||
The Company has historically incurred an ongoing level of restructuring-type activities to maintain a competitive cost structure, including manufacturing and workforce optimization resulting from acquisitions. | |||
The balance of the restructuring reserve is included in accrued liabilities on the accompanying balance sheets. Employee termination benefits expensed are included as a part of general and administrative expenses. | |||
Activity in the restructuring reserves for the three months ended March 31, 2014 is as follows (in thousands): | |||
Balance at December 31, 2013 | $ | 335 | |
Expensed | 8 | ||
Cash payments | -215 | ||
Balance at March 31, 2014 | 128 | ||
Debt_and_Credit_Arrangements
Debt and Credit Arrangements | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Debt and Credit Arrangements [Abstract] | ' | |||
Debt and Credit Arrangements | ' | |||
12 - Debt and Credit Arrangements | ||||
At March 31, 2014 the Company had a $75 million credit facility consisting of a $25 million revolving credit line and a $50 million 5-year term loan with Wells Fargo Bank, National Association (“Wells Fargo”). The $25 million credit line is fully available under the credit agreement. The credit facility contains covenants, including covenants relating to liquidity and other financial measurements, and provides for events of default, including failure to pay any interest when due, failure to perform or observe covenants, bankruptcy or insolvency events, and the occurrence of a material adverse effect, and restricts our ability to pay dividends. We are in compliance with all covenants as of March 31, 2014. We have granted Wells Fargo a security interest in substantially all of our assets. We have no other significant credit facilities. | ||||
During the first quarter 2013 we borrowed $22 million under the credit facility principally to fund the Grass acquisition and to provide for other working capital needs. We had no additional borrowings.. | ||||
The credit facility was increased to $75 million in June 2013 and the term was extended to five years. As part of the amended credit facility in June 2013, we converted $31.2 million of short-term revolving debt to a term loan, increasing the term loan from $18.8 million as of March 31, 2013 to $50 million as of June 30, 2013. | ||||
During the fourth quarter of 2013 and the first quarter of 2014 additional principal payments of $7.5 million and $5.0 million were made respectively. As a result of these additional principal payments the final payment on this term loan is scheduled to be made on or about June 30, 2017. | ||||
Long-term debt is comprised of the following (2014 and 2013 columns in thousands): | ||||
31-Mar-14 | 31-Dec-13 | |||
Term loan $50 million, interest at LIBOR plus 1.75%, due September 30, 2018 with term loan principle repayable in quarterly installments of $2.5 million | $32,500 | $37,500 | ||
Term loan $2.9 million Canadian (“CAD”), interest at cost of funds plus 2.5%, due September 15, 2014 with principle repayable in monthly installments of $16,000 until August 15, 2014 and one final payment of $404,000 collateralized by a first lien on company owned land and building | 437 | 517 | ||
Total | 32,937 | 38,017 | ||
Less: current portion of long-term debt | -10,437 | -10,517 | ||
Total long-term debt | $22,500 | $27,500 | ||
Maturities of long-term debt as of March 31, 2014 are as follows (in thousands): | ||||
Nine months ended December 31, 2014 | $ | 7,937 | ||
2015 | 10,000 | |||
2016 | 10,000 | |||
2017 | 5,000 | |||
Total Total long-term debt | $ | 32,937 | ||
At March 31, 2014 and December 31, 2013, the carrying value of total debt approximates fair market value. The fair value of the Company’s debt is considered a Level 2 measurement. |
Segment_Customer_and_Geographi
Segment, Customer and Geographic Information | 3 Months Ended | ||
Mar. 31, 2014 | |||
Segment, Customer and Geographic Information [Abstract] | ' | ||
Segment, Customer and Geographic Information | ' | ||
13 - Segment, Customer and Geographic Information | |||
We operate in one reportable segment in which we provide healthcare products used for the screening, detection, treatment, monitoring and tracking of common medical ailments. | |||
Our end-user customer base includes hospitals, clinics, laboratories, physicians, nurses, audiologists, and governmental agencies. Most of our international sales are to distributors who resell our products to end users or sub‑distributors. | |||
Revenue and long-lived asset information is as follows (in thousands): | |||
Three Months Ended March 31, | |||
2014 | 2013 | ||
Consolidated Revenue: | |||
United States | $48,346 | $48,364 | |
Foreign countries | 37,278 | 37,470 | |
Totals | $85,624 | $85,834 | |
Three Months Ended March 31, | |||
2014 | 2013 | ||
Revenue by End Market: | |||
Neurology Products | |||
Devices and Systems | $36,116 | $34,707 | |
Supplies | 14,226 | 15,447 | |
Services | 6,144 | 5,553 | |
Total Neurology Revenue | 56,486 | 55,707 | |
Newborn Care Products | |||
Devices and Systems | 14,924 | 17,250 | |
Supplies | 12,276 | 11,464 | |
Services | 1,938 | 1,413 | |
Total Newborn Care Revenue | 29,138 | 30,127 | |
Total Revenue | $85,624 | $85,834 | |
31-Mar-14 | 31-Dec-13 | ||
Property and equipment, net: | |||
United States | $9,265 | $9,619 | |
Canada | 5,868 | 6,060 | |
Argentina | 3,941 | 4,932 | |
Other foreign countries | 2,456 | 2,684 | |
Totals | $21,530 | $23,295 | |
During the three months ended March 31, 2014 and 2013, no single customer or foreign country contributed to more than 10% of revenue. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2014 | |
Fair Value Measurements [Abstract] | ' |
Fair Value Measurements | ' |
14 - 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 condensed consolidated balance sheet as of March 31, 2014 and December 31, 2013, but require disclosure of their fair values: cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities and debt. Except for debt, the carrying value of these financial instruments approximates fair values because of their relatively short maturity. | |
The carrying amount of the Company’s long term debt approximates fair value based on Level 2 inputs since the debt carries a variable interest rate that is tied to the current LIBOR rate plus a spread. |
Business_Combinations_Tables
Business Combinations (Tables) | 3 Months Ended | ||
Mar. 31, 2014 | |||
Business Combinations [Abstract] | ' | ||
Unaudited Pro forma Financial Information | ' | ||
Three Months Ended March 31, 2013 | |||
Revenue | $86,839 | ||
Income from operations | $5,239 | ||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||
Mar. 31, 2014 | |||
Inventories [Abstract] | ' | ||
Summary of Inventories | ' | ||
31-Mar-14 | 31-Dec-13 | ||
Raw materials and subassemblies | $21,381 | $24,312 | |
Work in process | 2,053 | 2,584 | |
Finished goods | 19,731 | 17,861 | |
Total inventories | 43,165 | 44,757 | |
Less: Non-current inventories | -7,710 | -7,072 | |
Inventories, current | $35,455 | $37,685 | |
Intangible_Assets_Tables
Intangible Assets (Tables) | 3 Months Ended | |||||||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||||||
Intangible Assets / Goodwill [Abstract] | ' | |||||||||||||||||||||||||||||
Components of gross and net intangible asset balances | ' | |||||||||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | |||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Impairment | Accumulated Amortization | Net Book Value | Gross Carrying Amount | Accumulated Impairment | Accumulated Amortization | Net Book Value | |||||||||||||||||||||||
Intangible assets with definite lives: | ||||||||||||||||||||||||||||||
Technology | $65,746 | -- | ($26,965) | )11 | $38,781 | $65,904 | -- | ($25,519) | $40,385 | |||||||||||||||||||||
Customer related | 32,278 | -- | -10,293 | 21,985 | 31,231 | -- | -9,763 | 21,468 | ||||||||||||||||||||||
Internally developed software | 11,917 | -- | -5,395 | 6,522 | 11,069 | -- | -5,107 | 5,962 | ||||||||||||||||||||||
Patents | 2,723 | -- | -2,121 | 602 | 2,724 | -- | -2,094 | 630 | ||||||||||||||||||||||
Backlog | 722 | -- | -722 | -- | 722 | -- | -722 | -- | ||||||||||||||||||||||
Definite-lived intangible assets | 113,386 | -45,496 | 67,890 | 111,650 | -- | -43,205 | 68,445 | |||||||||||||||||||||||
Intangible assets with indefinite lives: | ||||||||||||||||||||||||||||||
Tradenames | 33,311 | -3,060 | -- | 30,251 | 33,435 | -3,060 | -- | 30,375 | ||||||||||||||||||||||
Total Intangibles | $146,697 | ($3,060) | ($45,496) | $98,141 | $145,085 | ($3,060) | ($43,205) | $98,820 | ||||||||||||||||||||||
Amortization expense related to intangible assets with definite lives | ' | |||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||
Technology | $1,096 | $963 | ||||||||||||||||||||||||||||
Customer Related | 647 | 601 | ||||||||||||||||||||||||||||
Internally developed software | 288 | 239 | ||||||||||||||||||||||||||||
Patents | 30 | 20 | ||||||||||||||||||||||||||||
Total amortization | $2,061 | $1,823 | ||||||||||||||||||||||||||||
Expected amortization expense related to amortizable intangible assets | ' | |||||||||||||||||||||||||||||
Expected amortization expense related to amortizable intangible assets is as follows (in thousands): | ||||||||||||||||||||||||||||||
Nine months ending December 31, 2014 | $ | 5,965 | ||||||||||||||||||||||||||||
2015 | 7,736 | |||||||||||||||||||||||||||||
2016 | 6,863 | |||||||||||||||||||||||||||||
2017 | 6,502 | |||||||||||||||||||||||||||||
2018 | 6,236 | |||||||||||||||||||||||||||||
2019 | 5,333 | |||||||||||||||||||||||||||||
Thereafter | 29,255 | |||||||||||||||||||||||||||||
Total expected amortization expense | $ | 67,890 | ||||||||||||||||||||||||||||
Goodwill_Tables
Goodwill (Tables) | 3 Months Ended | |
Mar. 31, 2014 | ||
Intangible Assets / Goodwill [Abstract] | ' | |
Carrying amount of Goodwill | ' | |
As of December 31, 2013 | $97,238 | |
Acquisitions/Purchase Accounting Adjustments | 4,001 | |
Foreign currency translation | -310 | |
As of March 31, 2014 | $100,929 | |
Property_and_Equipment_net_Tab
Property and Equipment, net (Tables) | 3 Months Ended | ||
Mar. 31, 2014 | |||
Property and Equipment, net [Abstract] | ' | ||
Property and Equipment net | ' | ||
31-Mar-14 | 31-Dec-13 | ||
Land | $4,023 | $4,152 | |
Buildings | 9,490 | 10,269 | |
Leasehold improvements | 2,795 | 2,789 | |
Office furniture and equipment | 10,920 | 10,719 | |
Computer software and hardware | 9,869 | 9,362 | |
Demonstration and loaned equipment | 9,557 | 10,320 | |
46,654 | 47,611 | ||
Accumulated depreciation and amortization | -25,124 | -24,316 | |
Total | $21,530 | $23,295 | |
Reserve_for_Product_Warranties1
Reserve for Product Warranties (Tables) | 3 Months Ended | ||
Mar. 31, 2014 | |||
Reserve for Product Warranties [Abstract] | ' | ||
Reserve for Product Warranties | ' | ||
Three Months Ended March 31, | |||
2014 | 2013 | ||
Balance, beginning of period | $3,143 | $2,260 | |
Acquisition warranty assumed | -- | 191 | |
Warranty accrued for the period | 390 | 656 | |
Repairs for the period | -522 | -464 | |
Balance, end of period | $3,011 | $2,643 | |
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 3 Months Ended | ||
Mar. 31, 2014 | |||
Share-Based Compensation [Abstract] | ' | ||
Share-based compensation expense | ' | ||
Three Months Ended March 31, | |||
2014 | 2013 | ||
Cost of revenue | $28 | $59 | |
Marketing and sales | 235 | 271 | |
Research and development | 146 | 117 | |
General and administrative | 1,199 | 913 | |
Total | $1,609 | $1,360 | |
Restructuring_Reserves_Tables
Restructuring Reserves (Tables) | 3 Months Ended | ||
Mar. 31, 2014 | |||
Restructuring Reserves [Abstract] | ' | ||
Detail of activity in the restructuring reserve | ' | ||
Balance at December 31, 2013 | $ | 335 | |
Expensed | 8 | ||
Cash payments | -215 | ||
Balance at March 31, 2014 | 128 | ||
Debt_and_Credit_Arrangements_T
Debt and Credit Arrangements (Tables) | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Debt and Credit Arrangements [Abstract] | ' | |||
Components of long-term debt | ' | |||
31-Mar-14 | 31-Dec-13 | |||
Term loan $50 million, interest at LIBOR plus 1.75%, due September 30, 2018 with term loan principle repayable in quarterly installments of $2.5 million | $32,500 | $37,500 | ||
Term loan $2.9 million Canadian (“CAD”), interest at cost of funds plus 2.5%, due September 15, 2014 with principle repayable in monthly installments of $16,000 until August 15, 2014 and one final payment of $404,000 collateralized by a first lien on company owned land and building | 437 | 517 | ||
Total | 32,937 | 38,017 | ||
Less: current portion of long-term debt | -10,437 | -10,517 | ||
Total long-term debt | $22,500 | $27,500 | ||
Maturities of long-term debt | ' | |||
Maturities of long-term debt as of March 31, 2014 are as follows (in thousands): | ||||
Nine months ended December 31, 2014 | $ | 7,937 | ||
2015 | 10,000 | |||
2016 | 10,000 | |||
2017 | 5,000 | |||
Total Total long-term debt | $ | 32,937 | ||
Segment_Customer_and_Geographi1
Segment, Customer and Geographic Information (Tables) | 3 Months Ended | ||
Mar. 31, 2014 | |||
Segment, Customer and Geographic Information [Abstract] | ' | ||
Revenue and long-lived asset information by geographic region | ' | ||
Three Months Ended March 31, | |||
2014 | 2013 | ||
Consolidated Revenue: | |||
United States | $48,346 | $48,364 | |
Foreign countries | 37,278 | 37,470 | |
Totals | $85,624 | $85,834 | |
Three Months Ended March 31, | |||
2014 | 2013 | ||
Revenue by End Market: | |||
Neurology Products | |||
Devices and Systems | $36,116 | $34,707 | |
Supplies | 14,226 | 15,447 | |
Services | 6,144 | 5,553 | |
Total Neurology Revenue | 56,486 | 55,707 | |
Newborn Care Products | |||
Devices and Systems | 14,924 | 17,250 | |
Supplies | 12,276 | 11,464 | |
Services | 1,938 | 1,413 | |
Total Newborn Care Revenue | 29,138 | 30,127 | |
Total Revenue | $85,624 | $85,834 | |
31-Mar-14 | 31-Dec-13 | ||
Property and equipment, net: | |||
United States | $9,265 | $9,619 | |
Canada | 5,868 | 6,060 | |
Argentina | 3,941 | 4,932 | |
Other foreign countries | 2,456 | 2,684 | |
Totals | $21,530 | $23,295 | |
Business_Combinations_Details
Business Combinations (Details) (Grass Technologies [Member], USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2013 |
Grass Technologies [Member] | ' |
Unaudited Pro forma Financial Information | ' |
Revenue | $86,839 |
Income from operations | $5,239 |
Business_Combinations_Details_
Business Combinations (Details Textual) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Business Combinations (Textual) [Abstract] | ' | ' | ' |
Goodwill | $100,929,000 | ' | $97,238,000 |
Amortization of intangible assets acquired | 2,061,000 | 1,823,000 | ' |
Decrease in general and administrative expense related to the direct acquisition costs | 12,280,000 | 13,966,000 | ' |
Grass Technologies [Member] | ' | ' | ' |
Business Combinations (Textual) [Abstract] | ' | ' | ' |
Acquisition date of entity | 2-Feb-13 | ' | ' |
Inventory purchase commitment | 2,400,000 | ' | ' |
Purchase price paid in cash to acquire entity | 21,000,000 | ' | ' |
Direct cost associated with entity acquisition | 624,000 | ' | ' |
Goodwill | 7,000,000 | ' | ' |
Revenue | ' | 86,839,000 | ' |
Income from operations | ' | 5,239,000 | ' |
Amortization of intangible assets acquired | 59,300 | ' | ' |
Decrease in depreciation expense related to property and equipment acquired | 14,800 | ' | ' |
Decrease in general and administrative expense related to the direct acquisition costs | 624,000 | ' | ' |
Newborn Hearing Screening Services [Member] | ' | ' | ' |
Business Combinations (Textual) [Abstract] | ' | ' | ' |
Purchase price paid in cash to acquire entity | $3,600,000 | ' | ' |
Tender Touch [Member] | ' | ' | ' |
Business Combinations (Textual) [Abstract] | ' | ' | ' |
Acquisition date of entity | 16-Jan-14 | ' | ' |
Hearing Health Consultants [Member] | ' | ' | ' |
Business Combinations (Textual) [Abstract] | ' | ' | ' |
Acquisition date of entity | 10-Mar-14 | ' | ' |
Basic_and_Diluted_Earnings_Per1
Basic and Diluted Earnings Per Common Share (Details) | 3 Months Ended |
Mar. 31, 2014 | |
Basic and Diluted Earnings Per Common Share (Textual) [Abstract] | ' |
Common stock equivalents shares included in weighted average shares outstanding used to calculate diluted earnings per share | 1,123,806 |
Common stock equivalents share options excluded in weighted average shares outstanding used to calculate diluted earnings per share | 229,990 |
Inventories_Details
Inventories (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Summary of Inventories | ' | ' |
Raw materials and subassemblies | $21,381 | $24,312 |
Work in process | 2,053 | 2,584 |
Finished goods | 19,731 | 17,861 |
Total inventories | 43,165 | 44,757 |
Less: Non-current Inventories | -7,710 | -7,072 |
Inventories, current | $35,455 | $37,685 |
Inventories_Details_Textual
Inventories (Details Textual) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventories (Textual) [Abstract] | ' | ' |
Non-current Inventories | ($7,710) | ($7,072) |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Intangible assets with definite lives: | ' | ' |
Total expected amortization expense | $67,890 | ' |
Intangible assets with indefinite lives: | ' | ' |
Gross Carrying Amount | 113,386 | 111,650 |
Accumulated Impairment | ' | ' |
Accumulated Amortization | -45,496 | -43,205 |
Net Book Value | 67,890 | 68,445 |
Intangibles Assets, Gross Carrying Amount | 146,697 | 145,085 |
Total intangible asset, Accumulated Impairment | -3,060 | -3,060 |
Total intangible assets, Accumulated Amortization | -45,496 | -43,205 |
Total intangibles assets | 98,141 | 98,820 |
Technology [Member] | ' | ' |
Intangible assets with definite lives: | ' | ' |
Gross Carrying Amount | 65,746 | 65,904 |
Accumulated Amortization | -26,965 | -25,519 |
Total expected amortization expense | 38,781 | 40,385 |
Customer related [Member] | ' | ' |
Intangible assets with definite lives: | ' | ' |
Gross Carrying Amount | 32,278 | 31,231 |
Accumulated Amortization | -10,293 | -9,763 |
Total expected amortization expense | 21,985 | 21,468 |
Internally developed software [Member] | ' | ' |
Intangible assets with definite lives: | ' | ' |
Gross Carrying Amount | 11,917 | 11,069 |
Accumulated Amortization | -5,395 | -5,107 |
Total expected amortization expense | 6,522 | 5,962 |
Patents [Member] | ' | ' |
Intangible assets with definite lives: | ' | ' |
Gross Carrying Amount | 2,723 | 2,724 |
Accumulated Amortization | -2,121 | -2,094 |
Total expected amortization expense | 602 | 630 |
Backlog [Member] | ' | ' |
Intangible assets with definite lives: | ' | ' |
Gross Carrying Amount | 722 | 722 |
Accumulated Amortization | -722 | -722 |
Total expected amortization expense | ' | ' |
Tradenames [Member] | ' | ' |
Intangible assets with indefinite lives: | ' | ' |
Gross Carrying Amount | 33,311 | 33,435 |
Accumulated Impairment | -3,060 | -3,060 |
Accumulated Amortization | ' | ' |
Net Book Value | $30,251 | $30,375 |
Intangible_Assets_Details_1
Intangible Assets (Details 1) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Amortization expense related to intangible assets with definite lives | ' | ' |
Total amortization | $2,061,000 | $1,823,000 |
Technology [Member] | ' | ' |
Amortization expense related to intangible assets with definite lives | ' | ' |
Total amortization | 1,096,000 | 963,000 |
Customer related [Member] | ' | ' |
Amortization expense related to intangible assets with definite lives | ' | ' |
Total amortization | 647,000 | 601,000 |
Internally developed software [Member] | ' | ' |
Amortization expense related to intangible assets with definite lives | ' | ' |
Total amortization | 288,000 | 239,000 |
Patents [Member] | ' | ' |
Amortization expense related to intangible assets with definite lives | ' | ' |
Total amortization | $30,000 | $20,000 |
Intangible_Assets_Details_2
Intangible Assets (Details 2) (USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Expected annual amortization expense related to amortizable intangible assets | ' |
Nine months ending December 31, 2014 | $5,965 |
2015 | 7,736 |
2016 | 6,863 |
2017 | 6,502 |
2018 | 6,236 |
2019 | 5,333 |
Thereafter | 29,255 |
Total expected amortization expense | $67,890 |
Intangible_Assets_Details_Text
Intangible Assets (Details Textual) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Technology [Member] | ' |
Intangible Assets (Textual) [Abstract] | ' |
Weighted average life of intangible assets | '15 years |
Customer related [Member] | ' |
Intangible Assets (Textual) [Abstract] | ' |
Weighted average life of intangible assets | '12 years |
Internally developed software [Member] | ' |
Intangible Assets (Textual) [Abstract] | ' |
Weighted average life of intangible assets | '7 years |
Costs incurred for development of internal use computer software | 10.4 |
Costs incurred for development of software to be sold | 1.5 |
Patents [Member] | ' |
Intangible Assets (Textual) [Abstract] | ' |
Weighted average life of intangible assets | '14 years |
Goodwill_Details
Goodwill (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Carrying amount of goodwill | ' | ' |
As of December 31, 2013 | ' | $97,238 |
Acquisitions/Purchase Accounting Adjustments | 4,001 | ' |
Foreign currency translation | ($310) | ' |
Property_and_Equipment_Net_Det
Property and Equipment, Net (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property and equipment, net | ' | ' |
Property and Equipment, Gross | $46,654 | $47,611 |
Accumulated depreciation and amortization | -25,124 | -24,316 |
Total | 21,530 | 23,295 |
Land [Member] | ' | ' |
Property and equipment, net | ' | ' |
Property and Equipment, Gross | 4,023 | 4,152 |
Buildings [Member] | ' | ' |
Property and equipment, net | ' | ' |
Property and Equipment, Gross | 9,490 | 10,269 |
Leasehold improvements [Member] | ' | ' |
Property and equipment, net | ' | ' |
Property and Equipment, Gross | 2,795 | 2,789 |
Office furniture and equipment [Member] | ' | ' |
Property and equipment, net | ' | ' |
Property and Equipment, Gross | 10,920 | 10,719 |
Computer software and hardware [Member] | ' | ' |
Property and equipment, net | ' | ' |
Property and Equipment, Gross | 9,869 | 9,362 |
Demonstration and loaned equipment [Member] | ' | ' |
Property and equipment, net | ' | ' |
Property and Equipment, Gross | $9,557 | $10,320 |
Property_and_Equipment_Net_Det1
Property and Equipment, Net (Details Textual) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Property and Equipment, Net (Textual) [Abstract] | ' | ' |
Depreciation and amortization expense of property and equipment | $1.20 | $1.10 |
Reserve_for_Product_Warranties2
Reserve for Product Warranties (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Reserve for Product Warranties | ' | ' |
Balance, beginning of period | $3,143 | $2,260 |
Acquisition warranty assumed | ' | 191 |
Warranty accrued for the period | 390 | 656 |
Repairs for the period | -522 | -464 |
Balance, end of period | $3,011 | $2,643 |
Reserve_for_Product_Warranties3
Reserve for Product Warranties (Details Textual) | 3 Months Ended |
Mar. 31, 2014 | |
Reserve for Product Warranties (Textual) [Abstract] | ' |
Product warranty period | '1 year |
Extended product warranty period | '1 year |
ShareBased_Compensation_Detail
Share-Based Compensation (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Share-based compensation expense | ' | ' |
Share-based compensation expense | $1,609 | $1,360 |
Cost of revenue [Member] | ' | ' |
Share-based compensation expense | ' | ' |
Share-based compensation expense | 28 | 59 |
Marketing and sales [Member] | ' | ' |
Share-based compensation expense | ' | ' |
Share-based compensation expense | 235 | 271 |
Research and development [Member] | ' | ' |
Share-based compensation expense | ' | ' |
Share-based compensation expense | 146 | 117 |
General and administrative [Member] | ' | ' |
Share-based compensation expense | ' | ' |
Share-based compensation expense | $1,199 | $913 |
ShareBased_Compensation_Detail1
Share-Based Compensation (Details Textual) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Weighted average period of recognition of unrecognized compensation expense | '2 years 9 months 18 days |
Share-Based Compensation (Textual) [Abstract] | ' |
Number of Active Share Based Compensation Plans | 2 |
Unrecognized compensation expense related to unvested portion of stock options | $16.50 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Income Tax Contingency [Line Items] | ' | ' |
Unrecognized Tax Benefits | $114,000 | ' |
Effective income tax reconciliation difference, federal research and development tax credit | ' | 340,000 |
Tax positions for which it is reasonably possible that the total amount could change | 585,000 | ' |
Income Taxes (Textual) [Abstract] | ' | ' |
Provision for income tax | $2,700,000 | ' |
Effective tax rate | 30.50% | ' |
United States [Member] | ' | ' |
Income Tax Contingency [Line Items] | ' | ' |
Open tax examination years | '2009 through 2013 | ' |
U.S. Federal [Member] | ' | ' |
Income Tax Contingency [Line Items] | ' | ' |
Open tax examination years | '2010 through 2013 | ' |
Significant foreign jurisdictions [Member] | ' | ' |
Income Tax Contingency [Line Items] | ' | ' |
Open tax examination years | '2009 through 2013 | ' |
Restructuring_Reserves_Details
Restructuring Reserves (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Detail of activity in the restructuring reserve | ' |
Beginning balance | $335 |
Expense | 8 |
Cash payments | -215 |
Ending balance | $128 |
Debt_and_Credit_Arrangements_D
Debt and Credit Arrangements (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Components of long-term debt | ' | ' |
Total | $32,937 | $38,017 |
Less current portion of long-term debt | -10,437 | -10,517 |
Long-term debt | 22,500 | 27,500 |
Term loan [Member] | Interest at LIBOR plus [Member] | ' | ' |
Components of long-term debt | ' | ' |
Total | 32,500 | 37,500 |
Term loan [Member] | Interest at Cost of Funds Plus [Member] | ' | ' |
Components of long-term debt | ' | ' |
Total | $437 | $517 |
Debt_and_Credit_Arrangements_D1
Debt and Credit Arrangements (Details 1) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Maturities of long-term debt | ' | ' |
Nine months ended December 31, 2014 | $7,937 | ' |
2015 | 10,000 | ' |
2016 | 10,000 | ' |
2017 | 5,000 | ' |
Total | $32,937 | $38,017 |
Debt_and_Credit_Arrangements_D2
Debt and Credit Arrangements (Details Textual) | Mar. 31, 2014 | Jun. 30, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 |
USD ($) | Revolving credit facility [Member] | Revolving credit facility [Member] | Grass acquisition [Member] | Term loan [Member] | Term loan [Member] | Term loan [Member] | Term loan [Member] | Term loan [Member] | Term loan [Member] | |
USD ($) | Revolving credit facility [Member] | USD ($) | USD ($) | USD ($) | USD ($) | Interest at LIBOR plus [Member] | Interest at Cost of Funds Plus [Member] | |||
USD ($) | USD ($) | CAD | ||||||||
Debt and Credit Arrangements (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility with Wells Fargo Bank | $75,000,000 | ' | $25,000,000 | ' | $50,000,000 | ' | ' | ' | ' | ' |
Borrowing amount under credit facility | ' | ' | ' | 22,000,000 | ' | ' | ' | ' | ' | ' |
Extended term of revolving line of credit | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of short term credit facility converted in to a term loan | ' | ' | ' | ' | ' | ' | 31,200,000 | ' | ' | ' |
Term loan outstanding | ' | ' | ' | ' | ' | ' | 50,000,000 | 18,800,000 | ' | ' |
Principal amount of debt | ' | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | 2,900,000 |
Basis spread interest rate | ' | ' | ' | ' | ' | ' | ' | ' | 1.75% | 2.50% |
Maturity date of debt instrument | ' | ' | ' | ' | 30-Jun-17 | ' | ' | ' | 30-Sep-18 | 15-Sep-14 |
Periodic principal amount | ' | ' | ' | ' | 5,000,000 | 7,500,000 | ' | ' | 2,500,000 | 16,000 |
Final payment, collateralized by a first lien on land and building | ' | ' | ' | ' | ' | ' | ' | ' | ' | 404,000 |
Term Loan expiration period | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' |
Segment_Customer_and_Geographi2
Segment, Customer and Geographic Information (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Consolidated Revenue: | ' | ' | ' |
Revenue | $85,624 | $85,834 | ' |
Revenue By End Market: | ' | ' | ' |
Total Revenue | 85,624 | 85,834 | ' |
Property and equipment, net: | ' | ' | ' |
Property and equipment, net | 21,530 | ' | 23,295 |
United States [Member] | ' | ' | ' |
Consolidated Revenue: | ' | ' | ' |
Revenue | 48,346 | 48,364 | ' |
Property and equipment, net: | ' | ' | ' |
Property and equipment, net | 9,265 | ' | 9,619 |
Canada [Member] | ' | ' | ' |
Property and equipment, net: | ' | ' | ' |
Property and equipment, net | 5,868 | ' | 6,060 |
Argentina [Member] | ' | ' | ' |
Property and equipment, net: | ' | ' | ' |
Property and equipment, net | 3,941 | ' | 4,932 |
Foreign Countries [Member] | ' | ' | ' |
Consolidated Revenue: | ' | ' | ' |
Revenue | 37,278 | 37,470 | ' |
Property and equipment, net: | ' | ' | ' |
Property and equipment, net | 2,456 | ' | 2,684 |
Neurology Products [Member] | ' | ' | ' |
Revenue By End Market: | ' | ' | ' |
Total Revenue | 56,486 | 55,707 | ' |
Neurology Products [Member] | Devices and Systems [Member] | ' | ' | ' |
Revenue By End Market: | ' | ' | ' |
Total Revenue | 36,116 | 34,707 | ' |
Neurology Products [Member] | Supplies [Member] | ' | ' | ' |
Revenue By End Market: | ' | ' | ' |
Total Revenue | 14,226 | 15,447 | ' |
Neurology Products [Member] | Services [Member] | ' | ' | ' |
Revenue By End Market: | ' | ' | ' |
Total Revenue | 6,144 | 5,553 | ' |
Newborn Care Products [Member] | ' | ' | ' |
Revenue By End Market: | ' | ' | ' |
Total Revenue | 29,138 | 30,127 | ' |
Newborn Care Products [Member] | Devices and Systems [Member] | ' | ' | ' |
Revenue By End Market: | ' | ' | ' |
Total Revenue | 14,924 | 17,250 | ' |
Newborn Care Products [Member] | Supplies [Member] | ' | ' | ' |
Revenue By End Market: | ' | ' | ' |
Total Revenue | 12,276 | 11,464 | ' |
Newborn Care Products [Member] | Services [Member] | ' | ' | ' |
Revenue By End Market: | ' | ' | ' |
Total Revenue | $1,938 | $1,413 | ' |
Segment_Customer_and_Geographi3
Segment, Customer and Geographic Information (Details Textual) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Segment, Customer and Geographic Information (Textual) [Abstract | ' | ' |
Number of Reportable Segment | 1 | ' |
Revenue [Member] | ' | ' |
Segment, Customer and Geographic Information (Textual) [Abstract | ' | ' |
Percentage of revenue represented by major customers | 10.00% | 10.00% |