Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 05, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'scln | ' |
Entity Registrant Name | 'SCICLONE PHARMACEUTICALS INC | ' |
Entity Central Index Key | '0000880771 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 50,773,816 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $96,831 | $85,803 |
Accounts receivable, net of allowances of $2,003 and $3,587 as of September 30, 2014 and December 31, 2013, respectively | 33,928 | 40,008 |
Inventories | 14,197 | 15,238 |
Restricted cash and investments | 75 | 75 |
Prepaid expenses and other current assets | 1,662 | 2,287 |
Deferred tax assets | 7 | 6 |
Total current assets | 146,700 | 143,417 |
Property and equipment, net | 1,577 | 843 |
Goodwill | 34,886 | 35,357 |
Other assets | 3,036 | 242 |
Total assets | 186,199 | 179,859 |
Current liabilities: | ' | ' |
Accounts payable | 6,364 | 7,190 |
Accrued and other current liabilities | 19,591 | 21,464 |
Deferred revenue | ' | 2,915 |
Short-term borrowings on credit facilities | ' | 1,651 |
Total current liabilities | 25,955 | 33,220 |
Other long-term liabilities | 55 | 44 |
Commitments and contingencies (Note 10) | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock; $0.001 par value; 10,000,000 shares authorized; no shares issued and outstanding | ' | ' |
Common stock; $0.001 par value; 100,000,000 shares authorized; 50,927,424 and 52,371,664 shares issued and outstanding as of September 30, 2014 and December 31, 2013, respectively | 51 | 52 |
Additional paid-in capital | 285,227 | 278,327 |
Accumulated other comprehensive income | 3,710 | 4,176 |
Accumulated deficit | -128,799 | -135,960 |
Total stockholders' equity | 160,189 | 146,595 |
Total liabilities and stockholders' equity | $186,199 | $179,859 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Condensed Consolidated Balance Sheets [Abstract] | ' | ' |
Allowance for doubtful accounts | $2,003 | $3,587 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 50,927,424 | 52,371,664 |
Common stock, shares outstanding | 50,927,424 | 52,371,664 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements Of Income (USD $) | 3 Months Ended | 9 Months Ended | ||
Share data in Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Revenues: | ' | ' | ' | ' |
Product sales, net | $33,621,000 | $25,273,000 | $91,236,000 | $67,489,000 |
Promotion services | 666,000 | 9,953,000 | 2,129,000 | 26,835,000 |
Total net revenues | 34,287,000 | 35,226,000 | 93,365,000 | 94,324,000 |
Operating expenses: | ' | ' | ' | ' |
Cost of product sales | 6,005,000 | 3,808,000 | 15,577,000 | 11,631,000 |
Sales and marketing | 13,911,000 | 16,498,000 | 34,987,000 | 41,966,000 |
Research and development | 653,000 | 550,000 | 2,933,000 | 6,321,000 |
General and administrative | 5,611,000 | 8,238,000 | 17,460,000 | 24,792,000 |
Total operating expenses | 26,180,000 | 29,094,000 | 70,957,000 | 84,710,000 |
Income from operations | 8,107,000 | 6,132,000 | 22,408,000 | 9,614,000 |
Non-operating income (expense): | ' | ' | ' | ' |
Interest and investment income | 31,000 | 31,000 | 73,000 | 62,000 |
Interest and investment expense | ' | -13,000 | -48,000 | -95,000 |
Other income, net | 108,000 | 2,711,000 | 19,000 | 2,775,000 |
Income before provision for income tax | 8,246,000 | 8,861,000 | 22,452,000 | 12,356,000 |
Provision for income tax | 331,000 | 153,000 | 763,000 | 1,428,000 |
Net income | $7,915,000 | $8,708,000 | $21,689,000 | $10,928,000 |
Basic net income per share | $0.16 | $0.16 | $0.42 | $0.20 |
Diluted net income per share | $0.15 | $0.16 | $0.41 | $0.20 |
Weighted average shares used in computing: | ' | ' | ' | ' |
Basic net income per share | 51,032 | 53,591 | 51,533 | 53,931 |
Diluted net income per share | 52,393 | 55,070 | 52,799 | 55,330 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements Of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Condensed Consolidated Statements Of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $7,915 | $8,708 | $21,689 | $10,928 |
Other comprehensive income (loss), net of income tax | ' | ' | ' | ' |
Reclassification adjustment for available-for-sale securities losses included in net income | ' | 77 | ' | 71 |
Foreign currency translation | 308 | 432 | -466 | 686 |
Total other comprehensive income (loss) | 308 | 509 | -466 | 757 |
Total comprehensive income | $8,223 | $9,217 | $21,223 | $11,685 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements Of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Operating activities: | ' | ' |
Net income | $21,689 | $10,928 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Non-cash expense related to stock-based compensation | 2,609 | 3,208 |
Non-cash escrow share settlement | ' | -1,865 |
Provision for doubtful accounts | ' | 1,046 |
Provision for expiring inventory | 575 | ' |
Depreciation and amortization | 652 | 645 |
Loss on maturity of available-for-sale securities | ' | 75 |
Loss on disposal of fixed assets | 17 | 14 |
Deferred income taxes | ' | 219 |
Other long-term liabilities | -50 | -233 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable, net | 3,307 | 1,779 |
Inventories | 4,655 | 668 |
Prepaid expenses and other assets | 627 | 343 |
Accounts payable | -5,365 | -3,874 |
Accrued and other current liabilities | -2,006 | -1,112 |
Deferred revenue | -256 | ' |
Net cash provided by operating activities | 26,454 | 11,841 |
Investing activities: | ' | ' |
Proceeds from the maturity of available-for-sale securities | ' | 379 |
Loans to third party (Note 4) | -2,501 | ' |
Purchases of property and equipment | -1,065 | -137 |
Net cash (used in) provided by investing activities | -3,566 | 242 |
Financing activities: | ' | ' |
Repurchase of common stock | -14,179 | -9,842 |
Proceeds from borrowing on credit facilities | ' | 567 |
Decrease in restricted cash related to loan facility | ' | 2,300 |
Repayment of credit facilities | -1,619 | -2,027 |
Proceeds from issuances of common stock, net | 3,989 | 1,648 |
Net cash used in financing activities | -11,809 | -7,354 |
Effect of exchange rate changes on cash and cash equivalents | -51 | 125 |
Net increase in cash and cash equivalents | 11,028 | 4,854 |
Cash and cash equivalents, beginning of period | 85,803 | 84,228 |
Cash and cash equivalents, end of period | $96,831 | $89,082 |
Basis_Of_Presentation
Basis Of Presentation | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Basis Of Presentation [Abstract] | ' | ||||||||||||
Basis Of Presentation | ' | ||||||||||||
Note 1 — Basis of Presentation | |||||||||||||
The accompanying unaudited condensed consolidated financial statements of SciClone Pharmaceuticals, Inc. (“SciClone” or the “Company”) have been prepared in conformity with generally accepted accounting principles in the United States (“GAAP”) consistent with those applied in, and should be read in conjunction with, the audited consolidated financial statements and the notes thereto for the year ended December 31, 2013 included in the Company’s Form 10-K as filed with the Securities and Exchange Commission (“SEC”). The Company prepared the unaudited condensed consolidated financial statements following the requirements of the SEC for interim reporting. As permitted under those rules, certain footnotes or other information that are normally required by GAAP can be condensed or omitted. | |||||||||||||
The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. | |||||||||||||
The interim financial information reflects all adjustments, consisting only of normal recurring adjustments, which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented and are not necessarily indicative of results for subsequent interim periods or for the full year. The unaudited condensed consolidated balance sheet data as of December 31, 2013 is derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. | |||||||||||||
Use of Estimates | |||||||||||||
The preparation of financial statements in conformity with GAAP requires management to make judgments, assumptions and estimates that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Actual results could differ significantly from those estimates. | |||||||||||||
Customer Concentration | |||||||||||||
In China, pharmaceutical products are imported and distributed through a tiered method of distribution. For the Company’s proprietary product, ZADAXIN®, the Company manufactures its product using its US and European contract manufacturers, and it generates its product sales revenue through sales of ZADAXIN products to Sinopharm Lingyun Biopharmaceutical (Shanghai) Co. Ltd. (“SinoPharm”). SinoPharm and its affiliates act as an importer, and also as the top “tier” of the distribution system (“Tier 1”) in China. The Company’s ZADAXIN sales occur when the importer purchases product from the Company, without any right of return except for damaged product or quality control issues and after passage of title and risk of loss are transferred to the importer, SinoPharm, at the time of shipment. After the Company’s sale, SinoPharm clears products through China import customs, sells directly to large hospitals and holds additional product it has purchased in inventory for sale to the next tier in the distribution system. The second-tier distributors are responsible for the further sale and distribution of the products they purchase from the importer, either through sales of product directly to the retail level (hospitals and pharmacies), or to third-tier local or regional distributors who, in turn, sell products to hospitals and pharmacies. The Company’s other product sales revenues result from the sale of the Company’s in-licensed products to importing agents and distributors and from sales of ZADAXIN in countries other than China. | |||||||||||||
Promotion services revenues result from fees received for exclusively promoting products for certain pharmaceutical partners. These importing agents, distributors and partners are the Company’s customers. | |||||||||||||
Customers that exceeded 10% of the Company’s total net revenue and related to the Company’s China segment were as follows: | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Customer A | 94% | 68% | 93% | 68% | |||||||||
Customer B | — | 26% | — | 26% | |||||||||
As of September 30, 2014, approximately $31.9 million, or 89%, of the Company's accounts receivable was attributable to one customer in China. The Company generally does not require collateral from its customers. | |||||||||||||
Accounts Receivable | |||||||||||||
Receivable Reserve. The Company records a receivable reserve based on a specific review of its overdue invoices. The Company’s estimate for a reserve is determined after considering its existing contractual payment terms, payment patterns of its customers and individual customer circumstances, the age of any outstanding receivables and its current customer relationships. Accounts receivable are charged off at the point when they are considered uncollectible. As of September 30, 2014, the Company had a receivable reserve for accounts receivable that were past due ninety days or more of approximately $2.0 million. The reserve includes $1.9 million from one customer that is more than one year past due. During the three months ended September 30, 2014, the Company, as a result of its negotiations, collected $0.5 million from this customer that was recorded as a reduction in the accounts receivable reserve and the accounts receivable balance, and the associated gain reflected in general and administrative expenses. Subsequent to September 30, 2014, the Company executed an agreement with this customer providing for settlement of the remaining $1.9 million due in installments. The Company will continue to maintain a full reserve on the remaining outstanding accounts receivable balance from this customer until payments are received. Refer to Note 14 for further information regarding this matter. | |||||||||||||
Revenue Recognition | |||||||||||||
The Company recognizes revenue when persuasive evidence of an arrangement exists, services have been rendered or delivery has occurred, the price to the buyer is fixed or determinable and collectability is reasonably assured. | |||||||||||||
Product Revenue. The Company recognizes product revenue from selling manufactured ZADAXIN product at the time of delivery. Sales of ZADAXIN to SinoPharm and its affiliates are recognized at time of shipment when title to the product is transferred to them. The Company also earns product revenue from purchasing medical products from pharmaceutical companies and selling them directly to importers or distributors. The Company recognizes revenue related to these products based on the “sell-in” method, when the medical products have been delivered to the importers or distributors. Payments by the importing agents and distributors are not contingent upon sale to the end user by the importing agents or distributors. | |||||||||||||
Promotion Services Revenue. The Company recognizes promotion services revenue after designated medical products are delivered to the distributors as specified in a promotion services contract, which marks the period when marketing and promotion services have been rendered and the revenue recognition criteria are met. In certain arrangements, the Company was required to return or refund a portion of promotion services fees received during interim periods from a pharmaceutical customer if defined annual sales targets were not achieved. Under the Company’s agreements with this customer, if an agreement was terminated, and provided such targets had been met on a “pro rata” basis at the date of contract termination, the Company was entitled to retain the amounts paid. Due to the ability to retain amounts paid upon contract termination, provided applicable targets had been met on a “pro rata” basis at any interim date, the Company elected to recognize revenue during interim periods without reduction for amounts subject to refund based on Method 2 of Accounting Standards Codification 605-20-S99-1, “Accounting for Management Fees Based on a Formula.” | |||||||||||||
The Company’s promotion agreements with Sanofi, consisting of individual promotional agreements for certain pharmaceutical products and supplementary agreements extending the terms thereof, were not renewed and expired on December 31, 2013. NovaMed Pharmaceuticals (Shanghai) Co. Ltd. (“NovaMed Shanghai”) and Sanofi negotiated a settlement of certain amounts in dispute, effective July 14, 2014, and NovaMed Shanghai received approximately 22 million Chinese Yuan Renminbi (“RMB”) (approximately $3.5 million) in August 2014 as final payment from Sanofi. The terms of the settlement resulted in the recognition of promotion services revenue for the second quarter of 2014 of approximately $0.2 million of Sanofi revenue that had been deferred in the fourth quarter of 2013. The remaining deferred revenue recorded during the fourth quarter of 2013, of approximately $2.6 million, was reversed with an equivalent write-down of accounts receivable. This contemporaneous write-down of accounts receivable and deferred revenue had no impact on net income during the second quarter of 2014 or the nine months ended September 30, 2014. | |||||||||||||
Revenue Reserve. The Company generally maintains a revenue reserve for product returns based on estimates of the amount of product to be returned by its customers which may result from expired or damaged product on delivery or for price reductions on the related sales and is based on historical patterns, analysis of market demand and/or a percentage of sales based on industry trends, and management’s evaluation of specific factors that may increase the risk of product returns. Importing agents or distributors do not have contractual rights of return except under limited terms regarding product quality. However, the Company is expected to replace products that have expired on delivery or are deemed to be damaged or defective when delivered. The calculation of the revenue reserve requires estimates and involves a high degree of subjectivity and judgment. As a result of the uncertainties involved in estimating the revenue reserve, there is a possibility that materially different amounts could be reported under different conditions or using different assumptions. | |||||||||||||
As of September 30, 2014 and December 31, 2013, the Company’s revenue reserves were approximately $0.5 million and $0, respectively. The increase is due to management’s estimate of Aggrastat product delivered during the three months ended September 30, 2014 that may be returned because the product shipped during the quarter was within six months of its expiration date. | |||||||||||||
Inventories | |||||||||||||
Inventories consist of raw materials, work in progress and finished products. Inventories are valued at the lower of cost or market (net realizable value), with cost determined on a first-in, first-out basis, and include amounts related to materials, labor and overhead. The Company periodically reviews the inventory in order to identify excess and obsolete items, including pharmaceutical products approaching their expiration dates. If obsolete or excess items are observed and there are no alternate uses for the inventory, the Company will record a write-down to net realizable value. For the three and nine-month periods ended September 30, 2014, the Company recorded charges to cost of product sales of $0.3 million and $0.6 million, respectively, for Aggrastat® product due to inventory nearing its expiration dates. | |||||||||||||
Loans Receivable | |||||||||||||
Loans receivable consist of two loans to one third party (see note 4). Loans are initially recorded, and continue to be carried, at unpaid principal balances under “other assets” on the unaudited condensed consolidated balance sheet. Carried balances are subsequently adjusted for payments of principal or adjustments to the allowance for loan losses to account for any impairment. Interest income is recognized over the term of the loans and is calculated using the simple-interest method, as the loans do not have associated premium or discount. If the loans were to experience impairment, interest income would not be recognized unless the likelihood of further loss was remote. | |||||||||||||
As of September 30, 2014, the Company concluded the loan carrying values approximated fair value due to the short time period between the lending of funds and the balance sheet date. Although the measurement basis is unpaid principal (as adjusted for subsequent payments or impairment), not fair value, the loans receivable would qualify as Level 3 measurements under the fair value hierarchy (Note 2) due to the presence of significant unobservable inputs related to the counterparty, which is a private entity. | |||||||||||||
Management considers impairment to exist when, based on current information or factors (such as payment history, value of collateral, and assessment of the counterparty’s current creditworthiness), it is probable that principal and interest payments will not be collected according to the contractual agreements. Management considers a loan payment delinquent when not received by the due date. As of September 30, 2014, management concluded the loans receivable were not impaired, and there was no allowance for loan losses. | |||||||||||||
Net Income Per Share | |||||||||||||
Basic net income per share has been computed by dividing net income by the weighted-average number of shares of common stock outstanding for the period. Diluted net income per share is computed by dividing net income by the weighted-average number of common equivalent shares outstanding for the period. Diluted net income per share includes any dilutive impact from outstanding stock options and the employee stock purchase plan using the treasury stock method. | |||||||||||||
The following is a reconciliation of the numerator and denominators of the basic and diluted net income per share computations (in thousands, except per share amounts): | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Numerator: | |||||||||||||
Net income | $ | 7,915 | $ | 8,708 | $ | 21,689 | $ | 10,928 | |||||
Denominator: | |||||||||||||
Weighted-average shares outstanding used to compute basic net income per share | 51,032 | 53,591 | 51,533 | 53,931 | |||||||||
Effect of dilutive securities | 1,361 | 1,479 | 1,266 | 1,399 | |||||||||
Weighted-average shares outstanding used to compute diluted net income per share | 52,393 | 55,070 | 52,799 | 55,330 | |||||||||
Basic net income per share | $ | 0.16 | $ | 0.16 | $ | 0.42 | $ | 0.20 | |||||
Diluted net income per share | $ | 0.15 | $ | 0.16 | $ | 0.41 | $ | 0.20 | |||||
For the three months ended September 30, 2014 and 2013, outstanding stock options for 3,733,555 and 3,187,073 shares, respectively, were excluded from the calculation of diluted net income per share because the effect from the assumed exercise of these options calculated under the treasury stock method would have been anti-dilutive. In addition, for the three months ended September 30, 2014 and 2013, 50,000 and 12,500 shares, respectively, of options subject to performance conditions were excluded from the calculation of diluted net income per share because the performance criteria had not been met. | |||||||||||||
For the nine months ended September 30, 2014 and 2013, outstanding stock options for 3,924,745 and 3,329,853 shares, respectively, were excluded from the calculation of diluted net income per share because the effect from the assumed exercise of these options calculated under the treasury stock method would have been anti-dilutive. In addition, for the nine months ended September 30, 2014 and 2013, shares subject to performance conditions of 50,000 and 12,500 shares, respectively, were excluded from the calculation of diluted net income per share because the performance criteria had not been met. | |||||||||||||
Reclassifications | |||||||||||||
The Company reclassified approximately $0.4 million of deferred tax balances as of December 31, 2013 to conform to the current year presentation, as permitted by the optional retrospective presentation provisions of Accounting Standards Update (ASU) 2013-11 “Income Taxes: Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss or a Tax Credit Carryforward Exists”. These reclassifications had no effect on prior years’ net income or stockholders’ equity. | |||||||||||||
New Accounting Standards Update | |||||||||||||
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update 2014-09, "Revenue from Contracts with Customers" (ASU 2014-09), which contains new accounting literature relating to how and when a company recognizes revenue. Under ASU 2014-09, a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods and services. ASU 2014-09 is effective for the Company’s fiscal year beginning January 1, 2017, with early application not permitted. The Company is in the process of determining what impact, if any, the adoption of ASU 2014-09 will have on its financial statements and related disclosures. The standard permits the use of either the retrospective or cumulative effect transition method. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. | |||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||||
Fair Value Measurements | ' | ||||||||||||
Note 2 — Fair Value Measurements | |||||||||||||
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Fair value measurements are based on a three-tier hierarchy that prioritizes the inputs used to measure fair value. The three levels of input are: | |||||||||||||
Level 1 - Quoted prices in active markets for identical assets or liabilities. | |||||||||||||
Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or 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 supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |||||||||||||
The following tables represent the Company’s fair value hierarchy for its financial assets (cash equivalents and restricted cash) measured at fair value on a recurring basis (in thousands): | |||||||||||||
Fair Value Measurements as of September 30, 2014 Using | |||||||||||||
Quoted Prices in | Significant | ||||||||||||
Active Markets | Other | Significant | |||||||||||
for | Observable | Unobservable | Balance | ||||||||||
Identical Assets | Inputs | Inputs | as of | ||||||||||
Description | (Level 1) | (Level 2) | (Level 3) | 30-Sep-14 | |||||||||
Certificate of deposit | $ | — | $ | 75 | $ | — | $ | 75 | |||||
Money market funds | 19,678 | — | — | 19,678 | |||||||||
Total | $ | 19,678 | $ | 75 | $ | — | $ | 19,753 | |||||
Fair Value Measurements as of December 31, 2013 Using | |||||||||||||
Quoted Prices in | Significant | ||||||||||||
Active Markets | Other | Significant | |||||||||||
for | Observable | Unobservable | Balance | ||||||||||
Identical Assets | Inputs | Inputs | as of | ||||||||||
Description | (Level 1) | (Level 2) | (Level 3) | 31-Dec-13 | |||||||||
Certificate of deposit | $ | — | $ | 75 | $ | — | $ | 75 | |||||
Money market funds | 28,262 | — | — | 28,262 | |||||||||
Total | $ | 28,262 | $ | 75 | $ | — | $ | 28,337 | |||||
Inventories
Inventories | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Inventories [Abstract] | ' | ||||||
Inventories | ' | ||||||
Note 3 — Inventories | |||||||
Inventories consisted of the following (in thousands): | |||||||
September 30, | December 31, | ||||||
2014 | 2013 | ||||||
Raw materials | $ | 5,749 | $ | 7,746 | |||
Work in progress | 501 | 319 | |||||
Finished goods | 7,947 | 7,173 | |||||
$ | 14,197 | $ | 15,238 | ||||
Included in the Company’s inventory as of September 30, 2014 and December 31, 2013, was $4.9 million and $2.4 million, respectively, in inventory held at distributors related to products marketed by NovaMed Pharmaceuticals, Inc. and NovaMed Shanghai subsidiaries. | |||||||
Loans_Receivable
Loans Receivable | 9 Months Ended |
Sep. 30, 2014 | |
Loans Receivable [Abstract] | ' |
Loans Receivable | ' |
Note 4 — Loans Receivable | |
As part of the Company’s May 2013 license and supply agreement with Zensun (Shanghai) Science & Technology Co. Ltd (“Zensun”), the Company previously agreed to loan up to $12 million to Zensun. The entry into the license and supply agreement in the second quarter of 2013, pursuant to which the Company licensed the exclusive rights to promote, market, distribute, and sell NeucardinTM, a chronic heart failure product under development by Zensun (such rights licensed for the People’s Republic of China, Hong Kong and Macau) is more fully described in the Company’s quarterly report on Form 10-Q for the second quarter of 2013. | |
Pursuant to its agreement to loan up to $12 million to Zensun, the Company and Zensun entered into two separate but related loan agreements in July and August of 2014. In the loan agreement entered between Zensun and the Company’s subsidiary SciClone Pharmaceuticals International China Holding Ltd. (“SPIL China”), Zensun can make drawdowns for a loan amount up to $11.75 million over a period of six months. As of September 30, 2014, a borrowing of $2.25 million was requested by Zensun and paid by SPIL China. This loan bears interest at a fixed rate of 7.5% per annum payable annually in arrears at each interest payment date as defined in the agreement. This loan matures on September 26, 2017, with an option electable by the borrower to extend for two additional years provided certain conditions are met. All outstanding balances must be repaid by the maturity date, with prepayments permitted without penalty upon prior notice. | |
In September 2014, as the second component of the overall borrowing arrangement described in the foregoing paragraph, the Company’s subsidiary SciClone Pharmaceuticals (China) Ltd. entered into an entrusted loan agreement for RMB 1,550,000 (approximately US$252,500 as of September 30, 2014) with Zensun, using a major Chinese bank as the lending agent. SciClone Pharmaceuticals (China) Ltd. is the principal and ultimately bears the credit risk, not the bank. The loan bears interest at a fixed rate of 7.5% per annum and Zensun is subject to obligations of the borrower as specified in the agreement. The loan term is sixty-six months. All outstanding principal and interest balances must be repaid by the maturity date, with prepayments permitted without penalty upon prior notice. | |
The proceeds of the two separate but related loans are to be used for working capital and general corporate purposes by Zensun. To secure the loans, Zensun pledged its entire equity interest in its subsidiary, Shanghai Dongxin Biochemical Technology Co. Ltd. (whose assets include real property) to SPIL China. | |
The two loans are included in “other assets” on the Company’s unaudited condensed consolidated balance sheet as of September 30, 2014. | |
Goodwill
Goodwill | 9 Months Ended | ||
Sep. 30, 2014 | |||
Goodwill [Abstract] | ' | ||
Goodwill | ' | ||
Note 5 — Goodwill | |||
The following table represents the changes in goodwill for the year ended December 31, 2013 and for the nine months ended September 30, 2014 (in thousands): | |||
Balance as of January 1, 2013 | $ | 34,313 | |
Translation adjustments | 1,044 | ||
Balance as of December 31, 2013 | $ | 35,357 | |
Translation adjustments | -471 | ||
Balance as of September 30, 2014 | $ | 34,886 | |
Credit_Facilities
Credit Facilities | 9 Months Ended |
Sep. 30, 2014 | |
Credit Facilities [Abstract] | ' |
Credit Facilities | ' |
Note 6 — Credit Facilities | |
Credit Facility | |
In December 2013, the Company’s subsidiary, NovaMed Shanghai, entered into a 10.0 million RMB revolving line of credit facility (approximately $1.6 million USD) and a maximum 15.0 million RMB loan facility (approximately $2.4 million USD) secured by its accounts receivable with Shanghai Pudong Development Bank Co. Ltd. (“the Credit Facility”). As of September 30, 2014, no borrowings were outstanding on the Credit Facility. The Credit Facility bears interest on borrowed funds at the People’s Bank of China 6-month base rate plus 15% (6.44% as of September 30, 2014). The Credit Facility expires November 30, 2014 and any amounts borrowed must be repaid by the expiration date. For the three and nine-months ended September 30, 2014, the Company paid interest of approximately $0 and $48,000, respectively, related to the Credit Facility. | |
Loan Agreement | |
The Company’s previous loan agreement for 12.5 million RMB (approximately $2.0 million) with Shanghai Pudong Development Bank Co. Ltd. expired August 29, 2013. All amounts borrowed were repaid by the expiration date. The loan bore interest on borrowed funds at 7.5%. For the three and nine-months ended September 30, 2013, the Company paid interest of approximately $7,000 and $0.1 million, respectively, related to this loan agreement. | |
Accrued_And_Other_Current_Liab
Accrued And Other Current Liabilities | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Accrued And Other Current Liabilities [Abstract] | ' | ||||||
Accrued And Other Current Liabilities | ' | ||||||
Note 7 — Accrued and Other Current Liabilities | |||||||
Accrued and other current liabilities consisted of the following (in thousands): | |||||||
September 30, | December 31, | ||||||
2014 | 2013 | ||||||
Accrued sales and marketing expenses | $ | 6,151 | $ | 6,419 | |||
Accrued taxes, tax reserves and interest | 4,777 | 5,029 | |||||
Accrued compensation and benefits | 2,966 | 3,475 | |||||
Accrued estimated SEC and DOJ investigation loss (Note 10) | 2,000 | 2,000 | |||||
Accrued professional fees | 1,521 | 1,601 | |||||
Accrued manufacturing costs | 1,145 | 1,617 | |||||
Other | 1,031 | 1,323 | |||||
$ | 19,591 | $ | 21,464 | ||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 9 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Accumulated Other Comprehensive Income [Abstract] | ' | |||||||||
Accumulated Other Comprehensive Income | ' | |||||||||
Note 8 — Accumulated Other Comprehensive Income | ||||||||||
Changes in the composition of accumulated other comprehensive income for the three and nine-months ended September 30, 2014 and 2013 are as follows (in thousands): | ||||||||||
Foreign | ||||||||||
Currency | Available-for-Sale | |||||||||
Translation | Investments | Total | ||||||||
Balances as of July 1, 2014 | $ | 3,402 | $ | — | $ | 3,402 | ||||
Other comprehensive income | 308 | — | 308 | |||||||
Balances as of September 30, 2014 | $ | 3,710 | $ | — | $ | 3,710 | ||||
Foreign | ||||||||||
Currency | Available-for-Sale | |||||||||
Translation | Investments | Total | ||||||||
Balances as of January 1, 2014 | $ | 4,176 | $ | — | $ | 4,176 | ||||
Other comprehensive loss | -466 | — | -466 | |||||||
Balances as of September 30, 2014 | $ | 3,710 | $ | — | $ | 3,710 | ||||
Foreign | ||||||||||
Currency | Available-for-Sale | |||||||||
Translation | Investments | Total | ||||||||
Balances as of July 1, 2013 | $ | 3,309 | $ | -73 | $ | 3,236 | ||||
Other comprehensive income (loss) before reclassifications | 436 | -4 | 432 | |||||||
Amounts reclassified out of accumulated other comprehensive income to other income, net | — | 77 | 77 | |||||||
Balances as of September 30, 2013 | $ | 3,745 | $ | — | $ | 3,745 | ||||
Foreign | ||||||||||
Currency | Available-for-Sale | |||||||||
Translation | Investments | Total | ||||||||
Balances as of January 1, 2013 | $ | 3,055 | $ | -67 | $ | 2,988 | ||||
Other comprehensive income (loss) before reclassifications | 690 | -4 | 686 | |||||||
Amounts reclassified out of accumulated other comprehensive income to other income, net | — | 71 | 71 | |||||||
Balances as of September 30, 2013 | $ | 3,745 | $ | — | $ | 3,745 | ||||
Stockholders_Equity
Stockholders' Equity | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Stockholders' Equity [Abstract] | ' | ||||||||||||
Stockholders' Equity | ' | ||||||||||||
Note 9 — Stockholders’ Equity | |||||||||||||
Stock-based Compensation | |||||||||||||
The following table summarizes the stock-based compensation expenses included in the unaudited condensed consolidated statements of income (in thousands): | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Sales and marketing | $ | 276 | $ | 321 | $ | 761 | $ | 875 | |||||
Research and development | 19 | 42 | 78 | 74 | |||||||||
General and administrative | 539 | 582 | 1,770 | 2,259 | |||||||||
$ | 834 | $ | 945 | $ | 2,609 | $ | 3,208 | ||||||
Stock Options | |||||||||||||
During the nine months ended September 30, 2014, the Company granted options to purchase a total of 1,659,500 shares of common stock and options to purchase 1,048,266 shares of common stock were exercised. As of September 30, 2014, there was approximately $4.9 million of unrecognized compensation expense, net of forfeitures, related to non-vested stock options, which is expected to be recognized over a weighted-average remaining period of approximately 2.77 years. | |||||||||||||
Restricted Stock Units (RSUs) | |||||||||||||
During the nine months ended September 30, 2014, 7,000 RSUs were granted at a grant date fair value per share of $4.52 and 211,699 RSUs vested. As of September 30, 2014, there was approximately $0.4 million of unrecognized compensation cost, net of forfeitures, related to non-vested RSUs, which is expected to be recognized over a weighted-average remaining period of approximately 1.52 years. | |||||||||||||
Repurchase of Common Stock | |||||||||||||
In July 2014, the Company’s Board of Directors approved an increase of $15 million to the existing share repurchase program initiated in October 2011, bringing the total authorized under the program since inception to $65.5 million. In addition, the Board of Directors extended the repurchase program through December 31, 2015. The Company repurchased and retired 2,651,462 shares at a cost of $14.5 million during the nine-month period ended September 30, 2014. As of September 30, 2014, $10.1 million of the $65.5 million share repurchase program authorized by the Board of Directors was available for future share repurchases. Repurchased shares have been retired and constitute authorized but unissued shares. | |||||||||||||
Contingencies_And_Commitments
Contingencies And Commitments | 9 Months Ended |
Sep. 30, 2014 | |
Contingencies And Commitments [Abstract] | ' |
Contingencies And Commitments | ' |
Note 10 —Commitments and Contingencies | |
Legal Matters | |
The Company is a party to various legal proceedings and subject to government investigations, as noted in this section below. All legal proceedings and any government investigations are subject to inherent uncertainties, unfavorable rulings or other adverse events which could occur. Unfavorable outcomes could include substantial monetary damages or awards, injunctions or other remedies, and if any of these were to occur, the possibility exists for a material adverse impact on the Company’s business, results of operations, financial position, and overall trends. The Company might also conclude that settling one or more such matters is in the best interests of its stockholders and its business, and any such settlement could include substantial payments. | |
On August 5, 2010, SciClone was contacted by the SEC and advised that the SEC has initiated a formal, non-public investigation of SciClone, and the SEC issued a subpoena to SciClone requesting a variety of documents and other information including, but not limited to, potential payments or transfers of anything of value to regulators and government-owned entities in China, bids or contracts with state or government-owned entities in China, any joint venture partner, intermediary or local agent of the Company in China, the Company's ethics and anti-corruption policies, training, and audits, and certain company financial and other disclosures. On August 6, 2010, the Company received a letter from the US Department of Justice (“DOJ”) indicating that the DOJ was investigating Foreign Corrupt Practices Act (“FCPA”) issues in the pharmaceutical industry generally, and that the DOJ had information about the Company’s practices suggesting possible violations. The Company received a further subpoena from the SEC in the fourth quarter of fiscal 2012 on additional matters including, but not limited to, matters related to its acquisition of NovaMed Pharmaceuticals, Inc. (”NovaMed”) on April 18, 2011 and FCPA matters, and certain sales and marketing expenses. | |
In response to these matters, the Company’s Board of Directors appointed a Special Committee of independent directors (the “Special Committee”) to oversee the Company’s response to the government inquiry. The Special Committee has undertaken independent investigations as to matters reflected in and arising from the SEC and DOJ investigations in order to evaluate whether any violation of the FCPA or other laws occurred. The Company will continue to cooperate fully with the SEC and DOJ in the conduct of their investigations. | |
The Company cannot predict what the outcome of those investigations will be, or the timing of any resolution. However, the Company has determined that a payment of at least $2.0 million to the government in penalties, fines and/or other remedies is probable. Accordingly, the Company recorded $2.0 million of operating expense in its fourth quarter 2013 results of operations to reflect the Company’s estimate of a probable loss incurred related to potential penalties, fines and/or other remedies in the ongoing investigations with the SEC and DOJ. Any actual fines or penalties that may be imposed, or other losses that may be realized related to the investigations, could materially differ and could be higher from the amount of the Company’s estimated loss and could materially impact the Company’s financial statements. The Company will re-assess the potential liability each quarter and may adjust its estimates accordingly in future periods if it determines that a different amount is both probable of being incurred and is reasonably estimable. | |
NovaMed was a party to a Distribution and Supply Agreement with MEDA Pharma GmbH & Co. KG (“MEDA”). Following the Company’s acquisition of NovaMed, MEDA claimed it had a right to terminate the agreement under a change of control provision. NovaMed does not believe that MEDA had a right of termination under the agreement. NovaMed filed an application for binding arbitration with the China International Economic and Trade Arbitration Commission (“CIETAC”) on July 26, 2012. On April 3, 2014, CIETAC issued the final Award of the Arbitral Tribunal. The Arbitral Tribunal found that MEDA did have a right to terminate the agreement upon a change of control, but that MEDA must make reasonable reimbursement to NovaMed before any products rights are returned to MEDA. The amount that must be paid includes $333,333 as “unjust enrichment” plus an amount for reasonable compensation for such services provided by NovaMed to MEDA. The amount of such payment for services was not determined by the Arbitral Tribunal, but was left to be determined by NovaMed. On April 30, 2014, NovaMed informed MEDA that its determination of reasonable compensation for its services was $3,314,629, including the $333,333 for unjust enrichment. MEDA has made a counter offer and the parties are attempting to resolve the matter without an additional arbitration proceeding, but NovaMed may need to take additional legal action to enforce its right to compensation. The amount of any final payment to NovaMed remains uncertain, and as such the Company has not recognized it as a gain contingency. | |
On March 11, 2013, Adam Crum filed a derivative lawsuit, purportedly in the name of SciClone, against Friedhelm Blobel, Gary Titus, Jon Saxe, Peter Barrett, Richard Hawkins, Gregg Lapointe and Ira Lawrence in California Superior Court, San Mateo County, captioned Crum v. Blobel, et al., Case No. CIV520331. The lawsuit alleges, based on the restatement of the Company’s consolidated financial statements for the year ended December 31, 2011 and certain quarters of 2011 and 2012, that the Board of Directors and management breached their fiduciary duties to the Company by not exercising oversight in such a way that they allowed the Company to file consolidated financial statements that were materially inaccurate. Plaintiff asserts claims for breach of fiduciary duty, abuse of control and mismanagement. Plaintiff seeks, among other things, injunctive relief, disgorgement, undisclosed damages and attorneys’ fees and costs. The Company and other defendants filed motions to dismiss the complaint. The court granted the motions to dismiss but allowed plaintiff to amend the complaint. An amended complaint was filed on September 19, 2014. On October 24, 2014, the defendants filed motions to dismiss the amended complaint. A hearing on the motions to dismiss is currently scheduled for December 5, 2014. Given the procedural process and the nature of this case, including that motions to dismiss have been filed, the Company is unable to make a reasonable estimate of the potential loss or range of losses, if any, that might arise from this matter. | |
Effective as of July 14, 2014, NovaMed Shanghai and Sanofi negotiated a settlement of certain amounts in dispute relating to previous promotion agreements which expired on December 31, 2013, and NovaMed received approximately 22 million RMB (approximately $3.5 million) in August 2014 as final payment from Sanofi. The terms of the settlement resulted in the recognition of promotion services revenue, for the second quarter of 2014, of approximately $0.2 million of Sanofi revenue that had been deferred in the fourth quarter of 2013. The remaining deferred revenue that had been deferred in the fourth quarter of 2013, of approximately $2.6 million, was reversed with an equivalent write-down of accounts receivable. This contemporaneous write-down of accounts receivable and deferred revenue had no impact on net income for the second quarter of 2014 or for the nine-month period ended September 30, 2014. | |
Purchase Obligations | |
Under agreements with certain of the Company’s pharmaceutical partners, the Company is committed to certain annual minimum product purchases where the contract is subject to termination if the annual minimum order is not met. As of September 30, 2014, the Company did not have any material unmet purchase obligations. | |
Research_And_Development_Expen
Research And Development Expense Related To Licensing Agreements | 9 Months Ended |
Sep. 30, 2014 | |
Research And Development Expense Related To Licensing Agreements [Abstract] | ' |
Research And Development Expense Related To Licensing Agreements | ' |
Note 11 — Research and Development Expense Related to Licensing Agreements | |
For the three and nine-month periods ended September 30, 2013, the Company recorded upfront payments totaling $0 and $5.0 million, respectively, in research and development expense related to its licensing arrangements with Taiwan Liposome Company granting the Company a license and the exclusive rights in China, Hong Kong and Macau to promote, market, and distribute and sell ProFlow® for the treatment of peripheral arterial disease and other indications, and Zensun for the exclusive promotion, marketing, distribution and sale of Neucardin in China. No similar license expense was recorded during the three and nine-month periods ended September 30, 2014. | |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2014 | |
Income Taxes [Abstract] | ' |
Income Taxes | ' |
Note 12 — Income Taxes | |
The provision for income taxes primarily relates to taxable income of the Company’s China operations. The provision for income tax was approximately $0.3 million and $0.2 million for the three-month periods ended September 30, 2014 and 2013, respectively. The provision for income tax was $0.8 million and $1.4 million for the nine-month periods ended September 30, 2014 and 2013, respectively. The increase of $0.1 million in the provision for income tax for the three-month period ended September 30, 2014, compared to the same period of the prior year related to forecasted growth in the Company’s China operations. The decrease of $0.6 million for the nine-month period ended September 30, 2014, compared to the same period of the prior year, was due to a reduction of approximately $0.5 million for the nine-month period ended September 30, 2014 in the Company’s liabilities for uncertain tax positions in China due to certain tax years becoming closed to assessment due to the statute of limitations, offset partially by continued interest accrual on the uncertain tax positions. Tax expense was also lower for the nine-month period ended September 30, 2014, compared to the same period of the prior year, related to the expiration of the Sanofi distribution agreements resulting in a reduction in the Company’s forecasted profitability for 2014 for its NovaMed Shanghai operations, compared to the Company’s forecasted profitability as of September 30, 2013 for 2013. The Company’s statutory tax rate in China was 25% in 2014 and 2013. | |
Segment_Information_And_Geogra
Segment Information And Geographic Data | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Segment Information And Geographic Data [Abstract] | ' | ||||||||||||
Segment Information And Geographic Data | ' | ||||||||||||
Note 13 — Segment Information and Geographic Data | |||||||||||||
The Company reports segment information based on the internal reporting used by management for evaluating segment performance based on management’s estimates of the appropriate allocation of resources to segments. | |||||||||||||
The Company operates and manages its business primarily on a geographic basis. Accordingly, the Company determined its operating and reporting segments, which are generally based on the nature and location of its customers, to be 1) China and 2) Rest of the World, including the US and Hong Kong. | |||||||||||||
The Company evaluates the performance of its operating segments based on revenues and operating income (loss). Revenues for geographic segments are generally based on the location of customers. Operating income (loss) for each segment includes revenues, related cost of sales and operating expenses directly attributable to the segment. Operating income (loss) for each segment excludes non-operating income and expense. Summary information by operating segment for the three and nine-month periods ended September 30, 2014 and 2013 is as follows (in thousands): | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Revenue: | |||||||||||||
China | $ | 33,168 | $ | 33,968 | $ | 90,134 | $ | 90,949 | |||||
Rest of the World (including the US and Hong Kong) | 1,119 | 1,258 | 3,231 | 3,375 | |||||||||
Total net revenues | $ | 34,287 | $ | 35,226 | $ | 93,365 | $ | 94,324 | |||||
Income (loss) from operations: | |||||||||||||
China | $ | 10,478 | $ | 9,873 | $ | 29,499 | $ | 23,831 | |||||
Rest of the World (including the US and Hong Kong) | -2,371 | -3,741 | -7,091 | -14,217 | |||||||||
Total income from operations | $ | 8,107 | $ | 6,132 | $ | 22,408 | $ | 9,614 | |||||
Non-operating income (expense), net: | |||||||||||||
China | $ | 144 | $ | 152 | $ | 57 | $ | 197 | |||||
Rest of the World (including the US and Hong Kong) | -5 | 2,577 | -13 | 2,545 | |||||||||
Total non-operating income, net | $ | 139 | $ | 2,729 | $ | 44 | $ | 2,742 | |||||
Income (loss) before provision for income tax: | |||||||||||||
China | $ | 10,622 | $ | 10,025 | $ | 29,556 | $ | 24,028 | |||||
Rest of the World (including the US and Hong Kong) | -2,376 | -1,164 | -7,104 | -11,672 | |||||||||
Total income before provision for income tax | $ | 8,246 | $ | 8,861 | $ | 22,452 | $ | 12,356 | |||||
Long-lived assets as of September 30, 2014 by operating segment are as follows (in thousands): | |||||||||||||
China | $ | 36,987 | |||||||||||
Rest of the World (including the US and Hong Kong) | 2,512 | ||||||||||||
$ | 39,499 | ||||||||||||
Subsequent_Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2014 | |
Subsequent Event [Abstract] | ' |
Subsequent Event | ' |
Note 14 — Subsequent Event | |
In October 2014, the Company’s subsidiary, SPIL China entered into a settlement agreement with a customer to settle outstanding receivable balances that were more than one year past due to the Company. At the beginning of the third quarter of 2014, fully reserved outstanding receivables from this customer totaled approximately $3.5 million. The entry into this settlement agreement followed the receipt of a payment of $500,000 by the customer during the third quarter of 2014, and this gain on recovery was recorded as a reduction to general and administrative expense for the three months ended September 30, 2014. The settlement agreement provided that the customer will pay SPIL China $1.9 million in installment payments to be made as follows: $500,000 before October 31, 2014; $500,000 before November 30, 2014; $400,000 before May 31, 2015; and the remaining balance of $500,000 to be made by December 31, 2015. The terms of the settlement agreement resulted in the write-off of $1.1 million in previously fully reserved accounts receivable with an equivalent charge-off of the allowance for bad debt as of September 30, 2014, which had no impact on net income, as the subsequent agreement provided direct evidence that the $1.1 million previously reserved will not be collected in the future. The Company will continue to maintain a full reserve on the remaining outstanding accounts receivable balance of $1.9 million for this customer until payments are received. The Company received the first $500,000 payment in October 2014 per the terms of the settlement agreement. | |
Basis_Of_Presentation_Policy
Basis Of Presentation (Policy) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Basis Of Presentation [Abstract] | ' | ||||||||||||
Basis Of Presentation | ' | ||||||||||||
Note 1 — Basis of Presentation | |||||||||||||
The accompanying unaudited condensed consolidated financial statements of SciClone Pharmaceuticals, Inc. (“SciClone” or the “Company”) have been prepared in conformity with generally accepted accounting principles in the United States (“GAAP”) consistent with those applied in, and should be read in conjunction with, the audited consolidated financial statements and the notes thereto for the year ended December 31, 2013 included in the Company’s Form 10-K as filed with the Securities and Exchange Commission (“SEC”). The Company prepared the unaudited condensed consolidated financial statements following the requirements of the SEC for interim reporting. As permitted under those rules, certain footnotes or other information that are normally required by GAAP can be condensed or omitted. | |||||||||||||
The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. | |||||||||||||
The interim financial information reflects all adjustments, consisting only of normal recurring adjustments, which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented and are not necessarily indicative of results for subsequent interim periods or for the full year. The unaudited condensed consolidated balance sheet data as of December 31, 2013 is derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. | |||||||||||||
Use Of Estimates | ' | ||||||||||||
Use of Estimates | |||||||||||||
The preparation of financial statements in conformity with GAAP requires management to make judgments, assumptions and estimates that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Actual results could differ significantly from those estimates. | |||||||||||||
Customer Concentration | ' | ||||||||||||
Customer Concentration | |||||||||||||
In China, pharmaceutical products are imported and distributed through a tiered method of distribution. For the Company’s proprietary product, ZADAXIN®, the Company manufactures its product using its US and European contract manufacturers, and it generates its product sales revenue through sales of ZADAXIN products to Sinopharm Lingyun Biopharmaceutical (Shanghai) Co. Ltd. (“SinoPharm”). SinoPharm and its affiliates act as an importer, and also as the top “tier” of the distribution system (“Tier 1”) in China. The Company’s ZADAXIN sales occur when the importer purchases product from the Company, without any right of return except for damaged product or quality control issues and after passage of title and risk of loss are transferred to the importer, SinoPharm, at the time of shipment. After the Company’s sale, SinoPharm clears products through China import customs, sells directly to large hospitals and holds additional product it has purchased in inventory for sale to the next tier in the distribution system. The second-tier distributors are responsible for the further sale and distribution of the products they purchase from the importer, either through sales of product directly to the retail level (hospitals and pharmacies), or to third-tier local or regional distributors who, in turn, sell products to hospitals and pharmacies. The Company’s other product sales revenues result from the sale of the Company’s in-licensed products to importing agents and distributors and from sales of ZADAXIN in countries other than China. | |||||||||||||
Promotion services revenues result from fees received for exclusively promoting products for certain pharmaceutical partners. These importing agents, distributors and partners are the Company’s customers. | |||||||||||||
Customers that exceeded 10% of the Company’s total net revenue and related to the Company’s China segment were as follows: | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Customer A | 94% | 68% | 93% | 68% | |||||||||
Customer B | — | 26% | — | 26% | |||||||||
As of September 30, 2014, approximately $31.9 million, or 89%, of the Company's accounts receivable was attributable to one customer in China. The Company generally does not require collateral from its customers. | |||||||||||||
Accounts Receivable | ' | ||||||||||||
Accounts Receivable | |||||||||||||
Receivable Reserve. The Company records a receivable reserve based on a specific review of its overdue invoices. The Company’s estimate for a reserve is determined after considering its existing contractual payment terms, payment patterns of its customers and individual customer circumstances, the age of any outstanding receivables and its current customer relationships. Accounts receivable are charged off at the point when they are considered uncollectible. As of September 30, 2014, the Company had a receivable reserve for accounts receivable that were past due ninety days or more of approximately $2.0 million. The reserve includes $1.9 million from one customer that is more than one year past due. During the three months ended September 30, 2014, the Company, as a result of its negotiations, collected $0.5 million from this customer that was recorded as a reduction in the accounts receivable reserve and the accounts receivable balance, and the associated gain reflected in general and administrative expenses. Subsequent to September 30, 2014, the Company executed an agreement with this customer providing for settlement of the remaining $1.9 million due in installments. The Company will continue to maintain a full reserve on the remaining outstanding accounts receivable balance from this customer until payments are received. Refer to Note 14 for further information regarding this matter. | |||||||||||||
Revenue Recognition | ' | ||||||||||||
Revenue Recognition | |||||||||||||
The Company recognizes revenue when persuasive evidence of an arrangement exists, services have been rendered or delivery has occurred, the price to the buyer is fixed or determinable and collectability is reasonably assured. | |||||||||||||
Product Revenue. The Company recognizes product revenue from selling manufactured ZADAXIN product at the time of delivery. Sales of ZADAXIN to SinoPharm and its affiliates are recognized at time of shipment when title to the product is transferred to them. The Company also earns product revenue from purchasing medical products from pharmaceutical companies and selling them directly to importers or distributors. The Company recognizes revenue related to these products based on the “sell-in” method, when the medical products have been delivered to the importers or distributors. Payments by the importing agents and distributors are not contingent upon sale to the end user by the importing agents or distributors. | |||||||||||||
Promotion Services Revenue. The Company recognizes promotion services revenue after designated medical products are delivered to the distributors as specified in a promotion services contract, which marks the period when marketing and promotion services have been rendered and the revenue recognition criteria are met. In certain arrangements, the Company was required to return or refund a portion of promotion services fees received during interim periods from a pharmaceutical customer if defined annual sales targets were not achieved. Under the Company’s agreements with this customer, if an agreement was terminated, and provided such targets had been met on a “pro rata” basis at the date of contract termination, the Company was entitled to retain the amounts paid. Due to the ability to retain amounts paid upon contract termination, provided applicable targets had been met on a “pro rata” basis at any interim date, the Company elected to recognize revenue during interim periods without reduction for amounts subject to refund based on Method 2 of Accounting Standards Codification 605-20-S99-1, “Accounting for Management Fees Based on a Formula.” | |||||||||||||
The Company’s promotion agreements with Sanofi, consisting of individual promotional agreements for certain pharmaceutical products and supplementary agreements extending the terms thereof, were not renewed and expired on December 31, 2013. NovaMed Pharmaceuticals (Shanghai) Co. Ltd. (“NovaMed Shanghai”) and Sanofi negotiated a settlement of certain amounts in dispute, effective July 14, 2014, and NovaMed Shanghai received approximately 22 million Chinese Yuan Renminbi (“RMB”) (approximately $3.5 million) in August 2014 as final payment from Sanofi. The terms of the settlement resulted in the recognition of promotion services revenue for the second quarter of 2014 of approximately $0.2 million of Sanofi revenue that had been deferred in the fourth quarter of 2013. The remaining deferred revenue recorded during the fourth quarter of 2013, of approximately $2.6 million, was reversed with an equivalent write-down of accounts receivable. This contemporaneous write-down of accounts receivable and deferred revenue had no impact on net income during the second quarter of 2014 or the nine months ended September 30, 2014. | |||||||||||||
Revenue Reserve. The Company generally maintains a revenue reserve for product returns based on estimates of the amount of product to be returned by its customers which may result from expired or damaged product on delivery or for price reductions on the related sales and is based on historical patterns, analysis of market demand and/or a percentage of sales based on industry trends, and management’s evaluation of specific factors that may increase the risk of product returns. Importing agents or distributors do not have contractual rights of return except under limited terms regarding product quality. However, the Company is expected to replace products that have expired on delivery or are deemed to be damaged or defective when delivered. The calculation of the revenue reserve requires estimates and involves a high degree of subjectivity and judgment. As a result of the uncertainties involved in estimating the revenue reserve, there is a possibility that materially different amounts could be reported under different conditions or using different assumptions. | |||||||||||||
As of September 30, 2014 and December 31, 2013, the Company’s revenue reserves were approximately $0.5 million and $0, respectively. The increase is due to management’s estimate of Aggrastat product delivered during the three months ended September 30, 2014 that may be returned because the product shipped during the quarter was within six months of its expiration date. | |||||||||||||
Inventories | ' | ||||||||||||
Inventories | |||||||||||||
Inventories consist of raw materials, work in progress and finished products. Inventories are valued at the lower of cost or market (net realizable value), with cost determined on a first-in, first-out basis, and include amounts related to materials, labor and overhead. The Company periodically reviews the inventory in order to identify excess and obsolete items, including pharmaceutical products approaching their expiration dates. If obsolete or excess items are observed and there are no alternate uses for the inventory, the Company will record a write-down to net realizable value. For the three and nine-month periods ended September 30, 2014, the Company recorded charges to cost of product sales of $0.3 million and $0.6 million, respectively, for Aggrastat® product due to inventory nearing its expiration dates. | |||||||||||||
Loans Receivable | ' | ||||||||||||
Loans Receivable | |||||||||||||
Loans receivable consist of two loans to one third party (see note 4). Loans are initially recorded, and continue to be carried, at unpaid principal balances under “other assets” on the unaudited condensed consolidated balance sheet. Carried balances are subsequently adjusted for payments of principal or adjustments to the allowance for loan losses to account for any impairment. Interest income is recognized over the term of the loans and is calculated using the simple-interest method, as the loans do not have associated premium or discount. If the loans were to experience impairment, interest income would not be recognized unless the likelihood of further loss was remote. | |||||||||||||
As of September 30, 2014, the Company concluded the loan carrying values approximated fair value due to the short time period between the lending of funds and the balance sheet date. Although the measurement basis is unpaid principal (as adjusted for subsequent payments or impairment), not fair value, the loans receivable would qualify as Level 3 measurements under the fair value hierarchy (Note 2) due to the presence of significant unobservable inputs related to the counterparty, which is a private entity. | |||||||||||||
Management considers impairment to exist when, based on current information or factors (such as payment history, value of collateral, and assessment of the counterparty’s current creditworthiness), it is probable that principal and interest payments will not be collected according to the contractual agreements. Management considers a loan payment delinquent when not received by the due date. As of September 30, 2014, management concluded the loans receivable were not impaired, and there was no allowance for loan losses. | |||||||||||||
Net Income Per Share | ' | ||||||||||||
Net Income Per Share | |||||||||||||
Basic net income per share has been computed by dividing net income by the weighted-average number of shares of common stock outstanding for the period. Diluted net income per share is computed by dividing net income by the weighted-average number of common equivalent shares outstanding for the period. Diluted net income per share includes any dilutive impact from outstanding stock options and the employee stock purchase plan using the treasury stock method. | |||||||||||||
The following is a reconciliation of the numerator and denominators of the basic and diluted net income per share computations (in thousands, except per share amounts): | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Numerator: | |||||||||||||
Net income | $ | 7,915 | $ | 8,708 | $ | 21,689 | $ | 10,928 | |||||
Denominator: | |||||||||||||
Weighted-average shares outstanding used to compute basic net income per share | 51,032 | 53,591 | 51,533 | 53,931 | |||||||||
Effect of dilutive securities | 1,361 | 1,479 | 1,266 | 1,399 | |||||||||
Weighted-average shares outstanding used to compute diluted net income per share | 52,393 | 55,070 | 52,799 | 55,330 | |||||||||
Basic net income per share | $ | 0.16 | $ | 0.16 | $ | 0.42 | $ | 0.20 | |||||
Diluted net income per share | $ | 0.15 | $ | 0.16 | $ | 0.41 | $ | 0.20 | |||||
For the three months ended September 30, 2014 and 2013, outstanding stock options for 3,733,555 and 3,187,073 shares, respectively, were excluded from the calculation of diluted net income per share because the effect from the assumed exercise of these options calculated under the treasury stock method would have been anti-dilutive. In addition, for the three months ended September 30, 2014 and 2013, 50,000 and 12,500 shares, respectively, of options subject to performance conditions were excluded from the calculation of diluted net income per share because the performance criteria had not been met. | |||||||||||||
For the nine months ended September 30, 2014 and 2013, outstanding stock options for 3,924,745 and 3,329,853 shares, respectively, were excluded from the calculation of diluted net income per share because the effect from the assumed exercise of these options calculated under the treasury stock method would have been anti-dilutive. In addition, for the nine months ended September 30, 2014 and 2013, shares subject to performance conditions of 50,000 and 12,500 shares, respectively, were excluded from the calculation of diluted net income per share because the performance criteria had not been met. | |||||||||||||
Reclassifications | ' | ||||||||||||
Reclassifications | |||||||||||||
The Company reclassified approximately $0.4 million of deferred tax balances as of December 31, 2013 to conform to the current year presentation, as permitted by the optional retrospective presentation provisions of Accounting Standards Update (ASU) 2013-11 “Income Taxes: Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss or a Tax Credit Carryforward Exists”. These reclassifications had no effect on prior years’ net income or stockholders’ equity. | |||||||||||||
New Accounting Standards | ' | ||||||||||||
New Accounting Standards Update | |||||||||||||
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update 2014-09, "Revenue from Contracts with Customers" (ASU 2014-09), which contains new accounting literature relating to how and when a company recognizes revenue. Under ASU 2014-09, a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods and services. ASU 2014-09 is effective for the Company’s fiscal year beginning January 1, 2017, with early application not permitted. The Company is in the process of determining what impact, if any, the adoption of ASU 2014-09 will have on its financial statements and related disclosures. The standard permits the use of either the retrospective or cumulative effect transition method. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. | |||||||||||||
Basis_Of_Presentation_Tables
Basis Of Presentation (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Basis Of Presentation [Abstract] | ' | ||||||||||||
Schedule Of Revenue By Major Customers By Reporting Segments | ' | ||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Customer A | 94% | 68% | 93% | 68% | |||||||||
Customer B | — | 26% | — | 26% | |||||||||
Reconciliation Of The Numerator And Denominators Of The Basic And Diluted Net Income Per Share Computations | ' | ||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Numerator: | |||||||||||||
Net income | $ | 7,915 | $ | 8,708 | $ | 21,689 | $ | 10,928 | |||||
Denominator: | |||||||||||||
Weighted-average shares outstanding used to compute basic net income per share | 51,032 | 53,591 | 51,533 | 53,931 | |||||||||
Effect of dilutive securities | 1,361 | 1,479 | 1,266 | 1,399 | |||||||||
Weighted-average shares outstanding used to compute diluted net income per share | 52,393 | 55,070 | 52,799 | 55,330 | |||||||||
Basic net income per share | $ | 0.16 | $ | 0.16 | $ | 0.42 | $ | 0.20 | |||||
Diluted net income per share | $ | 0.15 | $ | 0.16 | $ | 0.41 | $ | 0.20 | |||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||||
Financial Assets And Liability Measured At Fair Value On A Recurring Basis | ' | ||||||||||||
Fair Value Measurements as of September 30, 2014 Using | |||||||||||||
Quoted Prices in | Significant | ||||||||||||
Active Markets | Other | Significant | |||||||||||
for | Observable | Unobservable | Balance | ||||||||||
Identical Assets | Inputs | Inputs | as of | ||||||||||
Description | (Level 1) | (Level 2) | (Level 3) | 30-Sep-14 | |||||||||
Certificate of deposit | $ | — | $ | 75 | $ | — | $ | 75 | |||||
Money market funds | 19,678 | — | — | 19,678 | |||||||||
Total | $ | 19,678 | $ | 75 | $ | — | $ | 19,753 | |||||
Fair Value Measurements as of December 31, 2013 Using | |||||||||||||
Quoted Prices in | Significant | ||||||||||||
Active Markets | Other | Significant | |||||||||||
for | Observable | Unobservable | Balance | ||||||||||
Identical Assets | Inputs | Inputs | as of | ||||||||||
Description | (Level 1) | (Level 2) | (Level 3) | 31-Dec-13 | |||||||||
Certificate of deposit | $ | — | $ | 75 | $ | — | $ | 75 | |||||
Money market funds | 28,262 | — | — | 28,262 | |||||||||
Total | $ | 28,262 | $ | 75 | $ | — | $ | 28,337 | |||||
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Inventories [Abstract] | ' | ||||||
Schedule Of Inventories | ' | ||||||
September 30, | December 31, | ||||||
2014 | 2013 | ||||||
Raw materials | $ | 5,749 | $ | 7,746 | |||
Work in progress | 501 | 319 | |||||
Finished goods | 7,947 | 7,173 | |||||
$ | 14,197 | $ | 15,238 | ||||
Goodwill_Tables
Goodwill (Tables) | 9 Months Ended | ||
Sep. 30, 2014 | |||
Goodwill [Abstract] | ' | ||
Schedule Of Changes In Goodwill | ' | ||
Balance as of January 1, 2013 | $ | 34,313 | |
Translation adjustments | 1,044 | ||
Balance as of December 31, 2013 | $ | 35,357 | |
Translation adjustments | -471 | ||
Balance as of September 30, 2014 | $ | 34,886 | |
Accrued_And_Other_Current_Liab1
Accrued And Other Current Liabilities (Tables) | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Accrued And Other Current Liabilities [Abstract] | ' | ||||||
Schedule Of Accrued And Other Current Liabilities | ' | ||||||
September 30, | December 31, | ||||||
2014 | 2013 | ||||||
Accrued sales and marketing expenses | $ | 6,151 | $ | 6,419 | |||
Accrued taxes, tax reserves and interest | 4,777 | 5,029 | |||||
Accrued compensation and benefits | 2,966 | 3,475 | |||||
Accrued estimated SEC and DOJ investigation loss (Note 10) | 2,000 | 2,000 | |||||
Accrued professional fees | 1,521 | 1,601 | |||||
Accrued manufacturing costs | 1,145 | 1,617 | |||||
Other | 1,031 | 1,323 | |||||
$ | 19,591 | $ | 21,464 | ||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Accumulated Other Comprehensive Income [Abstract] | ' | |||||||||
Schedule Of Changes In The Composition Of Accumulated Other Comprehensive Income | ' | |||||||||
Foreign | ||||||||||
Currency | Available-for-Sale | |||||||||
Translation | Investments | Total | ||||||||
Balances as of July 1, 2014 | $ | 3,402 | $ | — | $ | 3,402 | ||||
Other comprehensive income | 308 | — | 308 | |||||||
Balances as of September 30, 2014 | $ | 3,710 | $ | — | $ | 3,710 | ||||
Foreign | ||||||||||
Currency | Available-for-Sale | |||||||||
Translation | Investments | Total | ||||||||
Balances as of January 1, 2014 | $ | 4,176 | $ | — | $ | 4,176 | ||||
Other comprehensive loss | -466 | — | -466 | |||||||
Balances as of September 30, 2014 | $ | 3,710 | $ | — | $ | 3,710 | ||||
Foreign | ||||||||||
Currency | Available-for-Sale | |||||||||
Translation | Investments | Total | ||||||||
Balances as of July 1, 2013 | $ | 3,309 | $ | -73 | $ | 3,236 | ||||
Other comprehensive income (loss) before reclassifications | 436 | -4 | 432 | |||||||
Amounts reclassified out of accumulated other comprehensive income to other income, net | — | 77 | 77 | |||||||
Balances as of September 30, 2013 | $ | 3,745 | $ | — | $ | 3,745 | ||||
Foreign | ||||||||||
Currency | Available-for-Sale | |||||||||
Translation | Investments | Total | ||||||||
Balances as of January 1, 2013 | $ | 3,055 | $ | -67 | $ | 2,988 | ||||
Other comprehensive income (loss) before reclassifications | 690 | -4 | 686 | |||||||
Amounts reclassified out of accumulated other comprehensive income to other income, net | — | 71 | 71 | |||||||
Balances as of September 30, 2013 | $ | 3,745 | $ | — | $ | 3,745 | ||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Stockholders' Equity [Abstract] | ' | ||||||||||||
Stock-Based Compensation Expenses Included In The Condensed Consolidated Statements Of Operations | ' | ||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Sales and marketing | $ | 276 | $ | 321 | $ | 761 | $ | 875 | |||||
Research and development | 19 | 42 | 78 | 74 | |||||||||
General and administrative | 539 | 582 | 1,770 | 2,259 | |||||||||
$ | 834 | $ | 945 | $ | 2,609 | $ | 3,208 | ||||||
Segment_Information_And_Geogra1
Segment Information And Geographic Data (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Segment Information And Geographic Data [Abstract] | ' | ||||||||||||
Summary Information By Operating Segment | ' | ||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Revenue: | |||||||||||||
China | $ | 33,168 | $ | 33,968 | $ | 90,134 | $ | 90,949 | |||||
Rest of the World (including the US and Hong Kong) | 1,119 | 1,258 | 3,231 | 3,375 | |||||||||
Total net revenues | $ | 34,287 | $ | 35,226 | $ | 93,365 | $ | 94,324 | |||||
Income (loss) from operations: | |||||||||||||
China | $ | 10,478 | $ | 9,873 | $ | 29,499 | $ | 23,831 | |||||
Rest of the World (including the US and Hong Kong) | -2,371 | -3,741 | -7,091 | -14,217 | |||||||||
Total income from operations | $ | 8,107 | $ | 6,132 | $ | 22,408 | $ | 9,614 | |||||
Non-operating income (expense), net: | |||||||||||||
China | $ | 144 | $ | 152 | $ | 57 | $ | 197 | |||||
Rest of the World (including the US and Hong Kong) | -5 | 2,577 | -13 | 2,545 | |||||||||
Total non-operating income, net | $ | 139 | $ | 2,729 | $ | 44 | $ | 2,742 | |||||
Income (loss) before provision for income tax: | |||||||||||||
China | $ | 10,622 | $ | 10,025 | $ | 29,556 | $ | 24,028 | |||||
Rest of the World (including the US and Hong Kong) | -2,376 | -1,164 | -7,104 | -11,672 | |||||||||
Total income before provision for income tax | $ | 8,246 | $ | 8,861 | $ | 22,452 | $ | 12,356 | |||||
Long-Lived Assets By Operating Segment | ' | ||||||||||||
China | $ | 36,987 | |||||||||||
Rest of the World (including the US and Hong Kong) | 2,512 | ||||||||||||
$ | 39,499 | ||||||||||||
Basis_Of_Presentation_Narrativ
Basis Of Presentation (Narrative) (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | ||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Jul. 14, 2014 | Jul. 14, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Oct. 31, 2014 | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | One Customer [Member] | One Customer [Member] | Accounts receivable attributable to One Customer [Member] | Sanofi [Member] | Sanofi [Member] | Sanofi [Member] | Sanofi [Member] | Stock Option [Member] | Stock Option [Member] | Stock Option [Member] | Stock Option [Member] | Performance-Based Stock Options [Member] | Performance-Based Stock Options [Member] | Performance-Based Stock Options [Member] | Performance-Based Stock Options [Member] | SPIL China [Member] | SPIL China [Member] | SPIL China [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | CNY | USD ($) | USD ($) | One Customer [Member] | Subsequent Event [Member] | Subsequent Event [Member] | ||||||||||||||
customer | customer | USD ($) | USD ($) | One Customer [Member] | |||||||||||||||||||
USD ($) | |||||||||||||||||||||||
Basis of Presentation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Customer revenue percentage | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts receivable gross | ' | ' | ' | ' | ' | ' | ' | $31,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of accounts receivable, gross | ' | ' | ' | ' | ' | ' | ' | 89.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts receivable past due ninety days or more | 2,000,000 | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for doubtful accounts | 2,003,000 | ' | 2,003,000 | ' | 3,587,000 | 1,900,000 | 1,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of customers | ' | ' | ' | ' | ' | ' | 1 | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period past due | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for doubtful accounts, collected | ' | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | 500,000 |
Expired product liability and reserve for product returns | 500,000 | ' | 500,000 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Settlement between customer and company | ' | ' | ' | ' | ' | ' | ' | ' | 3,500,000 | 22,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,900,000 | 1,900,000 |
Revenues | 34,287,000 | 35,226,000 | 93,365,000 | 94,324,000 | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Decrease in deferred revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Write-down of accounts receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Provision for expiring inventory | 300,000 | ' | 575,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares excluded from the calculation of diluted net income per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,733,555 | 3,187,073 | 3,924,745 | 3,329,853 | 50,000 | 12,500 | 50,000 | 12,500 | ' | ' | ' |
Reclassification adjustment | ' | ' | ' | ' | $400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basis_Of_Presentation_Schedule
Basis Of Presentation (Schedule Of Revenue By Major Customers By Reporting Segments) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Customer A [Member] | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Percentage of sales to importing or distributor agents | 94.00% | 68.00% | 93.00% | 68.00% |
Customer B [Member] | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Percentage of sales to importing or distributor agents | ' | 26.00% | ' | 26.00% |
Basis_Of_Presentation_Reconcil
Basis Of Presentation (Reconciliation Of The Numerator And Denominators Of The Basic And Diluted Net Income Per Share Computations) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Basis Of Presentation [Abstract] | ' | ' | ' | ' |
Net income | $7,915 | $8,708 | $21,689 | $10,928 |
Weighted-average shares outstanding used to compute basic net income per share | 51,032 | 53,591 | 51,533 | 53,931 |
Effect of dilutive securities | 1,361 | 1,479 | 1,266 | 1,399 |
Weighted-average shares outstanding used to compute diluted net income per share | 52,393 | 55,070 | 52,799 | 55,330 |
Basic net income per share | $0.16 | $0.16 | $0.42 | $0.20 |
Diluted net income per share | $0.15 | $0.16 | $0.41 | $0.20 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value | $19,753 | $28,337 |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value | 19,678 | 28,262 |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value | 75 | 75 |
Certificates of Deposit [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value | 75 | 75 |
Certificates of Deposit [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value | 75 | 75 |
Money Market Funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value | 19,678 | 28,262 |
Money Market Funds [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value | $19,678 | $28,262 |
Inventories_Details
Inventories (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Inventories [Abstract] | ' | ' |
Raw materials | $5,749,000 | $7,746,000 |
Work in progress | 501,000 | 319,000 |
Finished goods | 7,947,000 | 7,173,000 |
Inventory | 14,197,000 | 15,238,000 |
Inventory held at distributors | $4,900,000 | $2,400,000 |
Loans_Receivable_Details
Loans Receivable (Details) (Zensun [Member]) | 1 Months Ended | 2 Months Ended | 9 Months Ended | 1 Months Ended | ||
31-May-13 | Aug. 31, 2014 | Aug. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
USD ($) | loan | SPIL China [Member] | SPIL China [Member] | SciClone Pharmaceuticals (China) Ltd [Member] | SciClone Pharmaceuticals (China) Ltd [Member] | |
Loan One [Member] | Loan One [Member] | Loan Two [Member] | Loan Two [Member] | |||
USD ($) | USD ($) | USD ($) | CNY | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | ' |
Collateralized loan amount, maximum | $12,000,000 | ' | $11,750,000 | ' | ' | ' |
Commitment agreement, number of loan agreements | ' | 2 | ' | ' | ' | ' |
Collateralized loan, period for drawdowns | ' | ' | '6 months | ' | ' | ' |
Loan receivable | ' | ' | ' | $2,250,000 | $252,500 | 1,550,000 |
Interest rate | ' | ' | ' | 7.50% | 7.50% | 7.50% |
Expiration date | ' | ' | ' | 26-Sep-17 | ' | ' |
Collateralized loan, option to extend, period | ' | ' | ' | '2 years | ' | ' |
Term | ' | ' | ' | ' | '66 months | '66 months |
Goodwill_Schedule_Of_Changes_I
Goodwill (Schedule Of Changes In Goodwill) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Goodwill [Abstract] | ' | ' |
Beginning balance | $35,357 | $34,313 |
Translation adjustments | -471 | 1,044 |
Ending balance | $34,886 | $35,357 |
Credit_Facilities_Details
Credit Facilities (Details) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Shanghai Pudong Development Bank Co. Ltd. [Member] | Shanghai Pudong Development Bank Co. Ltd. [Member] | Shanghai Pudong Development Bank Co. Ltd. [Member] | Shanghai Pudong Development Bank Co. Ltd. [Member] | NovaMed [Member] | NovaMed [Member] | NovaMed [Member] | NovaMed [Member] | NovaMed [Member] | NovaMed [Member] | |
USD ($) | USD ($) | CNY | USD ($) | USD ($) | USD ($) | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Secured Debt [Member] | Secured Debt [Member] | |
USD ($) | CNY | USD ($) | CNY | |||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt financing facility, maximum borrowing capacity | ' | $2,000,000 | 12,500,000 | ' | ' | ' | $1,600,000 | 10,000,000 | $2,400,000 | 15,000,000 |
Percentage points added to reference rate | ' | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' |
Effective interest rate | 7.50% | ' | ' | 7.50% | 6.44% | 6.44% | ' | ' | ' | ' |
Debt financing facility, expiration date | ' | 29-Aug-13 | 29-Aug-13 | ' | ' | 30-Nov-14 | ' | ' | ' | ' |
Interest paid | $7,000 | ' | ' | $100,000 | $0 | $48,000 | ' | ' | ' | ' |
Accrued_And_Other_Current_Liab2
Accrued And Other Current Liabilities (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accrued And Other Current Liabilities [Abstract] | ' | ' |
Accrued sales and marketing expenses | $6,151 | $6,419 |
Accrued taxes, tax reserves and interest | 4,777 | 5,029 |
Accrued compensation and benefits | 2,966 | 3,475 |
Accrued estimated SEC and DOJ investigation loss (Note 10) | 2,000 | 2,000 |
Accrued professional fees | 1,521 | 1,601 |
Accrued manufacturing costs | 1,145 | 1,617 |
Other | 1,031 | 1,323 |
Accrued and other current liabilities, total | $19,591 | $21,464 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Schedule Of Changes In The Composition Of Accumulated Other Comprehensive Income (Loss)) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Accumulated Other Comprehensive Income [Abstract] | ' | ' | ' | ' |
Foreign Currency Translation, Beginning balance | $3,402 | $3,309 | $4,176 | $3,055 |
Foreign Currency Translation, Other comprehensive income (loss) | 308 | 432 | -466 | 686 |
Foreign Currency Translation, Other comprehensive income (loss) before reclassifications | ' | 436 | ' | 690 |
Foreign Currency Translation, Ending balance | 3,710 | 3,745 | 3,710 | 3,745 |
Available-for-Sale Investments, Beginning balance | ' | -73 | ' | -67 |
Available-for-Sale Investments, Other comprehensive income (loss) before reclassifications | ' | -4 | ' | -4 |
Available-for-Sale Investments, Amounts reclassified out of accumulated other comprehensive income (loss) to other income (expense), net | ' | 77 | ' | 71 |
Beginning balance | 3,402 | 3,236 | 4,176 | 2,988 |
Other comprehensive income (loss) before reclassifications | ' | 432 | ' | 686 |
Amounts reclassified out of accumulated other comprehensive income to other income, net | ' | 77 | ' | 71 |
Other comprehensive income (loss) | 308 | 509 | -466 | 757 |
Ending balance | $3,710 | $3,745 | $3,710 | $3,745 |
Stockholders_Equity_Narrative_
Stockholders' Equity (Narrative) (Details) (USD $) | 9 Months Ended | |
In Millions, except Share data, unless otherwise specified | Sep. 30, 2014 | Jul. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock repurchased and retired, shares | 2,651,462 | ' |
Stock repurchased and retired, value | $14.50 | ' |
Share repurchase program, remaining amount authorized | 10.1 | ' |
Share repurchase program, approved increase | ' | 15 |
Share repurchase program, amount authorized | ' | 65.5 |
Stock Option [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Common stock, options granted, shares | 1,659,500 | ' |
Common stock, option exercises, shares | 1,048,266 | ' |
Unrecognized compensation expense, net of forfeitures | 4.9 | ' |
Unrecognized compensation expense, weighted-average remaining period for recognition, in years | '2 years 9 months 7 days | ' |
RSUs [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Unrecognized compensation expense, net of forfeitures | $0.40 | ' |
Unrecognized compensation expense, weighted-average remaining period for recognition, in years | '1 year 6 months 7 days | ' |
Weighted average grant date fair value of options per share | $4.52 | ' |
RSUs granted, shares | 7,000 | ' |
RSUs vested, shares | 211,699 | ' |
Stockholders_Equity_StockBased
Stockholders' Equity (Stock-Based Compensation Expenses Included In The Condensed Consolidated Statements Of Operations) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expenses recognized | $834 | $945 | $2,609 | $3,208 |
Sales And Marketing [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expenses recognized | 276 | 321 | 761 | 875 |
Research And Development [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expenses recognized | 19 | 42 | 78 | 74 |
General And Administrative [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expenses recognized | $539 | $582 | $1,770 | $2,259 |
Contingencies_And_Commitments_
Contingencies And Commitments (Details) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | ||||||
Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jul. 14, 2014 | Jul. 14, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Apr. 30, 2014 | Apr. 03, 2014 | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Sanofi [Member] | Sanofi [Member] | Sanofi [Member] | Sanofi [Member] | NovaMed [Member] | NovaMed [Member] | |
USD ($) | CNY | USD ($) | USD ($) | USD ($) | USD ($) | ||||||
Contingencies and Commitments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Probable payment to government in penalties, fines and/or other remedies | ' | ' | ' | $2,000,000 | ' | ' | ' | ' | ' | ' | ' |
Estimated SEC/DOJ investigation loss | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reimbursement for unjust enrichment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 333,333 |
Settlement between customer and company | ' | ' | ' | ' | ' | 3,500,000 | 22,000,000 | ' | ' | ' | ' |
Revenue | 34,287,000 | ' | 35,226,000 | 93,365,000 | 94,324,000 | ' | ' | 200,000 | ' | ' | ' |
Decrease in deferred revenue | ' | ' | ' | ' | ' | ' | ' | ' | -2,600,000 | ' | ' |
Write-down of accounts receivable | ' | ' | ' | ' | ' | ' | ' | ' | 2,600,000 | ' | ' |
Determination of reasonable compensation for services provided, including unjust enrichment | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3,314,629 | ' |
Research_And_Development_Expen1
Research And Development Expense Related To Licensing Agreements (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended |
Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | |
TLC [Member] | TLC [Member] | |||
Research and development expense related to in-licensing deals | $0 | $0 | $0 | $5,000,000 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | |
Sanofi [Member] | China [Member] | China [Member] | China [Member] | |||||
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Provision for income tax | $331,000 | $153,000 | $763,000 | $1,428,000 | ' | ' | ' | ' |
Increase (decrease) in tax expense | ' | ' | ' | ' | 100,000 | ' | ' | ' |
Increase (decrease) in tax liability | ' | ' | ' | ' | -600,000 | ' | ' | ' |
Reductions for prior year items | ' | ' | ' | ' | ' | $500,000 | ' | ' |
Statutory income tax rate | ' | ' | ' | ' | ' | ' | 25.00% | 25.00% |
Segment_Information_And_Geogra2
Segment Information And Geographic Data (Summary Information By Operating Segment) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue | $34,287 | $35,226 | $93,365 | $94,324 |
Income (loss) from operations | 8,107 | 6,132 | 22,408 | 9,614 |
Non-operating income (expense), net | 139 | 2,729 | 44 | 2,742 |
Income (loss) before provision for income tax | 8,246 | 8,861 | 22,452 | 12,356 |
China [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue | 33,168 | 33,968 | 90,134 | 90,949 |
Income (loss) from operations | 10,478 | 9,873 | 29,499 | 23,831 |
Non-operating income (expense), net | 144 | 152 | 57 | 197 |
Income (loss) before provision for income tax | 10,622 | 10,025 | 29,556 | 24,028 |
Rest Of The World (Including The U.S.) [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue | 1,119 | 1,258 | 3,231 | 3,375 |
Income (loss) from operations | -2,371 | -3,741 | -7,091 | -14,217 |
Non-operating income (expense), net | -5 | 2,577 | -13 | 2,545 |
Income (loss) before provision for income tax | ($2,376) | ($1,164) | ($7,104) | ($11,672) |
Segment_Information_And_Geogra3
Segment Information And Geographic Data (Long-Lived Assets By Operating Segment) (Details) (USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
Segment Reporting Information [Line Items] | ' |
Long-lived assets | $39,499 |
China [Member] | ' |
Segment Reporting Information [Line Items] | ' |
Long-lived assets | 36,987 |
Rest Of The World (Including The U.S.) [Member] | ' |
Segment Reporting Information [Line Items] | ' |
Long-lived assets | $2,512 |
Subsequent_Event_Details
Subsequent Event (Details) (USD $) | 9 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2014 | Oct. 31, 2014 | Sep. 30, 2014 | Oct. 31, 2014 | Dec. 31, 2015 | 31-May-15 | Nov. 30, 2014 | |
Subsequent Event [Member] | One Customer [Member] | One Customer [Member] | One Customer [Member] | One Customer [Member] | Scenario, Forecast [Member] | Scenario, Forecast [Member] | Scenario, Forecast [Member] | |
SPIL China [Member] | SPIL China [Member] | SPIL China [Member] | Subsequent Event [Member] | One Customer [Member] | One Customer [Member] | One Customer [Member] | ||
SPIL China [Member] | SPIL China [Member] | SPIL China [Member] | SPIL China [Member] | |||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Settlement agreement, receivable threshold period past due | ' | ' | '1 year | ' | ' | ' | ' | ' |
Accounts receivable | ' | ' | ' | $3,500,000 | $1,900,000 | ' | ' | ' |
Allowance for doubtful accounts, recoveries | ' | 500,000 | ' | 500,000 | 500,000 | 500,000 | 400,000 | 500,000 |
Settlement between customer and company | 1,900,000 | ' | ' | ' | 1,900,000 | ' | ' | ' |
Write-down of accounts receivable | ' | ' | ' | ' | $1,100,000 | ' | ' | ' |