FARO (FARO) 10-Q 25 Apr 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	Apr. 23, 2018
Document And Entity Information [Abstract]
Entity Registrant Name	FARO TECHNOLOGIES INC
Trading Symbol	FARO
Entity Central Index Key	917,491
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		16,960,961

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 138,826	$ 140,960
Short-term investments	10,957	10,997
Accounts receivable, net	71,631	72,105
Inventories, net	58,376	53,786
Prepaid expenses and other current assets	19,119	16,311
Total current assets	298,909	294,159
Property and equipment:
Machinery and equipment	69,355	66,514
Furniture and fixtures	6,853	6,945
Leasehold improvements	20,230	19,872
Property and equipment at cost	96,438	93,331
Less: accumulated depreciation and amortization	(64,907)	(61,452)
Property and equipment, net	31,531	31,879
Goodwill	54,511	52,750
Intangible assets, net	25,399	22,540
Service and sales demonstration inventory, net	41,703	39,614
Deferred income tax assets, net	15,738	15,606
Other long-term assets	2,861	2,030
Total assets	470,652	458,578
Current liabilities:
Accounts payable	11,145	11,569
Accrued liabilities	24,367	27,362
Income taxes payable	2,104	4,676
Current portion of unearned service revenues	30,976	29,674
Customer deposits	2,456	2,604
Total current liabilities	71,048	75,885
Unearned service revenues - less current portion	12,531	11,815
Deferred income tax liabilities	700	695
Income taxes payable - less current portion	15,952	15,952
Other long-term liabilities	2,092	2,165
Total liabilities	102,323	106,512
Commitments and contingencies - See Note 14
Shareholders’ equity:
Common stock - par value $.001, 50,000,000 shares authorized; 18,416,020 and 18,277,142 issued, respectively; 16,955,679 and 16,796,884 outstanding, respectively	18	18
Additional paid-in capital	231,209	223,055
Retained earnings	171,444	168,624
Accumulated other comprehensive loss	(2,608)	(7,822)
Common stock in treasury, at cost; 1,460,341 and 1,480,258 shares, respectively	(31,734)	(31,809)
Total shareholders’ equity	368,329	352,066
Total liabilities and shareholders’ equity	$ 470,652	$ 458,578

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, shares issued (in shares)	18,416,020	18,277,142
Common stock, shares outstanding (in shares)	16,955,679	16,796,884
Treasury stock, shares (in shares)	1,460,341	1,480,258

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Sales
Product	$ 70,581	$ 62,380
Service	22,253	19,182
Total sales	92,834	81,562
Cost of Sales
Product	26,884	27,058
Service	12,164	10,755
Total cost of sales (exclusive of depreciation and amortization, shown separately below)	39,048	37,813
Gross Profit	53,786	43,749
Operating Expenses
Selling and marketing	28,271	22,872
General and administrative	11,073	10,699
Depreciation and amortization	4,343	3,718
Research and development	9,406	8,466
Total operating expenses	53,093	45,755
Income (loss) from operations	693	(2,006)
Other expense (income)
Interest income	(73)	(82)
Other expense, net	184	8
Income (loss) before income tax expense (benefit)	582	(1,932)
Income tax expense (benefit)	127	(471)
Net income (loss)	$ 455	$ (1,461)
Net income (loss) per share - Basic (in dollars per share)	$ 0.03	$ (0.09)
Net income (loss) per share - Diluted (in dollars per share)	$ 0.03	$ (0.09)
Weighted average shares - Basic (in shares)	16,837,754	16,684,164
Weighted average shares - Diluted (in shares)	17,142,770	16,684,164

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 455	$ (1,461)
Currency translation adjustments, net of income tax	5,214	4,159
Comprehensive income	$ 5,669	$ 2,698

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Operating activities:
Net income (loss)	$ 455	$ (1,461)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	4,343	3,718
Stock-based compensation	1,553	1,417
Provision for bad debts	24	89
Loss on disposal of assets	127	77
Provision for excess and obsolete inventory	312	567
Deferred income tax (benefit) expense	(128)	6
Decrease (increase) in:
Accounts receivable	1,808	1,722
Inventories	(5,208)	(2,480)
Prepaid expenses and other current assets	(936)	(1,181)
(Decrease) increase in:
Accounts payable and accrued liabilities	(4,846)	(2,442)
Income taxes payable	(2,571)	(618)
Customer deposits	(213)	(123)
Unearned service revenues	1,231	430
Net cash used in operating activities	(4,049)	(279)
Investing activities:
Purchases of property and equipment	(2,243)	(1,745)
Payments for intangible assets	(650)	(332)
Acquisition of businesses	(3,966)	0
Net cash used in investing activities	(6,859)	(2,077)
Financing activities:
Payments on capital leases	(46)	(2)
Proceeds from issuance of stock related to stock option exercises	6,785	268
Net cash provided by financing activities	6,739	266
Effect of exchange rate changes on cash and cash equivalents	2,035	1,779
Decrease in cash and cash equivalents	(2,134)	(311)
Cash and cash equivalents, beginning of period	140,960	106,169
Cash and cash equivalents, end of period	$ 138,826	$ 105,858

Description of Business

Description of Business	3 Months Ended
	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	DESCRIPTION OF BUSINESS FARO Technologies, Inc. and its subsidiaries (collectively “FARO,” the “Company,” “us,” “we” or “our”) is a global technology company that designs, develops, manufactures, markets and supports software driven, three-dimensional (“3D”) measurement, imaging and realization systems. This technology permits high-precision 3D measurement, imaging and comparison of parts and complex structures within production and quality assurance processes. Our devices are used for inspection of components and assemblies, rapid prototyping, reverse engineering, documenting large volume or structures in 3D, surveying and construction, as well as for investigation and reconstruction of accident sites or crime scenes. We sell the majority of our products through a direct sales force across a broad number of customers in a range of manufacturing, industrial, architecture, surveying, building information modeling, construction, public safety forensics, cultural heritage and other applications. Our FaroArm ® , FARO ScanArm ® , FARO Gage ® , FARO Laser Tracker TM , FARO Cobalt Array Imager, FARO Laser Projector, and their companion CAM2 ® , BuildIT, and RayTracer TM software solutions, provide for Computer-Aided Design (“CAD”) based inspection, factory-level statistical process control, high-density surveying and laser-guided assembly and production. Together, these products integrate the measurement, quality inspection, and reverse engineering functions with CAD and 3D software to improve productivity, enhance product quality, and decrease rework and scrap in the manufacturing process, mainly supporting applications in our Factory Metrology vertical. Our FARO Focus and FARO Scanner Freestyle 3D X laser scanners, and their companion FARO SCENE, FARO PointSense, and FARO Zone public safety forensics software offerings, are utilized for a wide variety of 3D modeling, documentation and high-density surveying applications in our Construction Building Information Modeling (“Construction BIM” and formerly known as “Construction BIM-CIM”) and Public Safety Forensics verticals. Our FARO ScanArm ® , FARO Cobalt Array Imager, FARO Scanner Freestyle 3D X laser scanners and their companion SCENE software also enable a fully digital workflow used to capture real world geometry for the purpose of empowering design, enabling innovation, and speeding up the design cycle, supporting our Product Design vertical. FARO Visual Inspect TM enables large, complex 3D CAD data to be transferred to a tablet device and then used for mobile visualization and comparison to real world conditions, facilitating in-process inspection, assembly, guidance and positioning for applications in our Factory Metrology and Construction BIM verticals. Our line of galvanometer-based scan heads and laser scan controllers are used in a variety of laser applications and are integrated into larger components and systems. We report our segment information in accordance with the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 280, Segment Reporting (“FASB ASC Topic 280”). We evaluate business performance based upon several metrics, using segment profit as the primary financial measure. In the first quarter of 2018, we combined our historical Factory Metrology and 3D Machine Vision verticals under a single reporting segment, 3D Factory (formerly known as “Factory Metrology”), due to the linkage between the two historical verticals related to the type or class of customers served, the nature of the products and services provided, and the nature of the production processes. The 3D Machine Vision vertical was historically reported within the former Other reporting segment. There has been no change in our total consolidated financial condition or results of operations previously reported as a result of the change in our reportable segments. The amounts related to our reporting segment information for the three months ended March 31, 2017 have been restated throughout this Quarterly Report on Form 10-Q to reflect the change in reporting segments. Each of our reporting segments continue to employ consistent accounting policies. As a result of this assessment, we now report our activities in the following three reportable segments: • The 3D Factory reporting segment includes our Factory Metrology and 3D Machine Vision verticals and provides both standardized and customized solutions for manual, automated and 3D measurement and inspection in an industrial or manufacturing environment. Applications include alignment, part inspection, dimensional analysis, first article inspection, incoming and in-process inspection, machine calibration, non-contact inspection, robot calibration, tool building and set-up, and assembly guidance. • The Construction BIM reporting segment contains solely our Construction BIM vertical and provides solutions for as-built data capturing and 3D visualization in building information modeling applications, allowing our customers in the architecture, engineering and construction markets to quickly and accurately extract two-dimensional (“2D”) and 3D measurement points. Applications include as-built documentation, construction monitoring, surveying, asset and facility management, and heritage preservation. • The Emerging Verticals reporting segment (formerly known as "Other") includes our Product Design and Public Safety Forensics verticals. Our Product Design vertical provides advanced 3D solutions to assist in the engineering or design of a movable object, enabling a full digital workflow for applications that include reverse engineering and virtual simulation. Our Public Safety Forensics vertical provides solutions to public safety officials and professionals to capture environmental or situational scenes in 2D and 3D for crime, crash and fire scene investigations and environmental safety evaluations. All operating segments that do not meet the criteria to be reportable segments are aggregated in the Emerging Verticals reporting segment and have been combined based on the aggregation criteria and quantitative thresholds in accordance with the provisions of FASB ASC Topic 280. See Note 13 – Segment Reporting for further information.

Principles of Consolidation

Principles of Consolidation	3 Months Ended
	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Principles of Consolidation	PRINCIPLES OF CONSOLIDATION Our condensed consolidated financial statements include the accounts of FARO Technologies, Inc. and its subsidiaries, all of which are wholly-owned. All intercompany transactions and balances have been eliminated. The financial statements of our foreign subsidiaries are translated into U.S. dollars using exchange rates in effect at period-end for assets and liabilities and average exchange rates during each reporting period for results of operations. Adjustments resulting from financial statement translations are reflected as a separate component of accumulated other comprehensive loss. Foreign currency transaction gains and losses are included in net income (loss).

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements and notes thereto have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions of Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These condensed consolidated financial statements include all normal recurring accruals and adjustments considered necessary by management for a fair presentation in conformity with U.S. GAAP. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. The condensed consolidated results of operations for the three months ended March 31, 2018 are not necessarily indicative of results that may be expected for the year ending December 31, 2018 or any future interim period. The information included in this Quarterly Report on Form 10-Q, including the interim condensed consolidated financial statements and the accompanying notes, should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2017 . The accompanying December 31, 2017 condensed consolidated balance sheet has been derived from those audited consolidated financial statements. As described in Note 1 – Description of Business, in the first quarter of 2018, we changed our reporting segment structure. Amounts related to our reporting segment information for the three months ended March 31, 2017 have been restated throughout this Quarterly Report on Form 10-Q to reflect the change in reporting segments.

Impact of Recently Issued Accou

Impact of Recently Issued Accounting Pronouncements	3 Months Ended
	Mar. 31, 2018
Accounting Changes and Error Corrections [Abstract]
Impact of Recently Issued Accounting Pronouncements	IMPACT OF RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS Impact of Recently Adopted Accounting Standards - In January 2017, the FASB issued Accounting Standards Update (“ASU”) No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (“ASU 2017-01”) in order to clarify the definition of a business and provide additional guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASC Topic 805 recognizes three elements of a business: inputs, processes, and outputs. While an integrated set of assets and activities (collectively referred to as a “set”) that is a business usually has outputs, outputs are not required to be present. Additionally, all the inputs and processes that a seller uses in operating a set are not required if market participants can acquire the set and continue to produce outputs. ASU 2017-01 provides a screen to determine when a set is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. If the screen is not met, the new guidance (1) requires that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (2) removes the evaluation of whether a market participant could replace missing elements. The new guidance provides a framework to assist entities in evaluating whether both an input and a substantive process are present. This framework includes two sets of criteria to consider that depend on whether a set has outputs. Although outputs are not required for a set to be a business, outputs generally are a key element of a business. ASU 2017-01 provides more stringent criteria for sets without outputs and more narrowly defines the term output. ASU 2017-01 became effective for us on January 1, 2018 and was applied prospectively. Our adoption of the new guidance did not have a material impact on our consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory (“ASU 2016-16”), which removes the prohibition in ASC Topic 740 against the immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory. This ASU requires the tax effects of intercompany transactions, other than sales of inventory, to be recognized when the transfer occurs, instead of deferred until the transferred asset is sold to a third party or otherwise recovered through use of the asset. The new guidance must be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. ASU 2016-16 became effective for us on January 1, 2018 and was applied on a modified retrospective basis. Our adoption of the new guidance did not have a material impact on our consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”), which clarifies how companies present and classify certain cash receipts and cash payments in the statement of cash flows. ASU 2016-15 became effective for us on January 1, 2018 and was applied on a modified retrospective basis. Our adoption of the new guidance did not have a material impact on our consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers: (Topic 606) (“ASU 2014-09”), amending its accounting guidance related to revenue recognition. Under this ASU and subsequently issued amendments, revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additional disclosures are required to provide the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The following represents the impact of our adoption by significant revenue stream: • Measurement equipment and related software: Under the prior accounting guidance, sales of measurement, imaging and realization equipment and related software sales were generally recognized upon shipment, as we considered the earnings process complete as of the shipping date. The related software sold with our measurement, imaging and realization equipment functions together with such equipment to deliver the tangible product’s essential functionality. Customers frequently purchase extended warranties when purchasing measurement equipment and related software. Under the new guidance, we allocate the contract price to performance obligations based on our best estimate of the standalone selling price, utilizing data from the sale of our applicable products and services to customers separately in similar circumstances, with the exception of software licenses. We use the residual method for allocating the contract price to performance obligations relating to software licenses. Our adoption of the new guidance did not result in material changes to our accounting for revenue related to our measurement, imaging and realization equipment and related software. • Extended warranties: Under the prior accounting guidance, extended warranty sales were recognized on a straight-line basis over the term of the warranty. Extended warranty sales include contract periods that extend between one month and three years . The unearned service revenues reported in current and noncurrent liabilities on our condensed consolidated balance sheets appropriately reflect the remaining performance obligations related to these contracts. Our adoption of the new guidance did not result in material changes to our accounting for revenue related to extended warranties. • Software: Under the prior accounting guidance, software only sales were recognized when no further significant production, modification or customization of the software was required and when the following criteria were met: persuasive evidence of a sales agreement existed, delivery had occurred, and the sales price was fixed or determinable and deemed collectible. These software arrangements generally include short-term maintenance that is considered post-contract support. Maintenance renewals, when sold, were recognized on a straight-line basis over the term of the maintenance agreement. Our adoption of the new guidance did not result in material changes to our accounting for revenue related to software only sales and maintenance renewals. The unearned service revenue liabilities reported on our condensed consolidated balance sheets reflect the contract liabilities to satisfy the remaining performance obligations for extended warranties and software maintenance. The current portion of unearned service revenues on our condensed consolidated balance sheets is what we expect to recognize to revenue within twelve months after the applicable balance sheet date relating to extended warranty and software maintenance contract liabilities. The unearned service revenues - less current portion on our condensed consolidated balance sheets is what we expect to recognize to revenue extending beyond twelve months after the applicable balance sheet date relating to extended warranty and software maintenance contract liabilities. Customer deposits on our condensed consolidated balance sheets represent customer prepayments on contracts for performance obligations that we must satisfy in the future to recognize the related contract revenue. During the three months ended March 31, 2018, we recognized $9.0 million of service revenue that was deferred on our consolidated balance sheet as of December 31, 2017. Under the prior accounting guidance, we recognized sales commission expense as incurred. Under the new guidance, we must capitalize commission expense and amortize such costs ratably over the term of the contract. In accordance with the modified retrospective method of adoption, we recorded a net increase to opening retained earnings as of January 1, 2018 of $2.4 million and recognized an associated $2.4 million deferred cost asset due to the cumulative impact of adopting the new guidance. As of March 31, 2018, the deferred cost asset related to deferred commissions was approximately $2.5 million . For classification purposes, $1.8 million and $0.7 million are comprised within the Prepaid expenses and other current assets and Other long-term assets, respectively, on our condensed consolidated balance sheet. The impact of adopting the new guidance was not material to the consolidated operating results for the three months ended March 31, 2018. We have elected to account for shipping and handling as activities to fulfill the promise to transfer the good. As such, shipping and handling fees billed to customers in a sales transaction are recorded in Sales and shipping and handling costs incurred are recorded in Cost of sales. Additionally, we have elected to exclude from Sales any value add, sales and other taxes that we collect concurrent with revenue-producing activities. These accounting policy elections are consistent with the manner in which we have historically recorded shipping and handling fees and taxes. The nature of certain of our contracts gives rise to variable consideration, which may be constrained, primarily related to an allowance for sales returns. In accordance with the adoption of the new guidance, we are required to estimate the contract asset related to sales returns and record a corresponding adjustment to Cost of Sales. Historically, our allowance for sales returns has not been material and was less than $0.1 million as of March 31, 2018. As such, our adoption of the new guidance did not result in material changes to our accounting for variable consideration related to sales returns, and the corresponding contract asset related to such returns. The following tables present our revenues by Sales type as presented in our condensed consolidated statements of operations disaggregated by the timing of transfer of goods or services (in thousands, unaudited): For the Three Months Ended March 31, 2018 2017 Product sales Product transferred to customers at a point in time $ 70,581 $ 62,380 Product transferred to customers over time — — $ 70,581 $ 62,380 For the Three Months Ended March 31, 2018 2017 Service sales Service transferred to customers at a point in time $ 9,452 $ 8,642 Service transferred to customers over time 12,801 10,540 $ 22,253 $ 19,182 The following table presents our revenues disaggregated by geography, based on the billing addresses of our customers (in thousands, unaudited): For the Three Months Ended March 31, 2018 2017 Net sales to external customers United States $ 37,302 $ 31,770 EMEA (1) 29,680 24,960 APAC (1) 22,589 21,260 Other Americas (1) 3,263 3,572 $ 92,834 $ 81,562 (1) Regions represent Europe, the Middle East, and Africa (EMEA); Asia-Pacific (APAC); and Canada and Latin America (Other Americas) Impact of Recently Issued Accounting Standards - In January 2017, the FASB issued ASU No. 2017-04, Intangible - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”), which is intended to simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Under the current guidance, performance of Step 2 requires us to calculate the implied fair value of goodwill by following procedures that would be required to determine the fair value of assets acquired and liabilities assumed in a business combination. Under the new guidance, we will perform our goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge will be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value up to the amount of the goodwill allocated to the reporting unit. The new guidance also eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform Step 2 of the goodwill impairment test if it fails the qualitative assessment. As a result, all reporting units will be subject to the same impairment assessment. We will still have the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. ASU 2017-04 becomes effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted for annual or any interim goodwill impairment tests after January 1, 2017. The amendments in this ASU will be applied on a prospective basis. Disclosure of the nature and reason for the change in accounting principle is required upon transition. This disclosure is required in the first annual period and in the interim period within the first annual period when we initially adopt the amendments in this ASU. We plan to adopt this guidance for our fiscal year ending December 31, 2020. We do not expect that the adoption of this guidance will have a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”), which is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements to enable users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. ASU 2016-02 must be applied on a modified retrospective basis and is effective for fiscal years beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. We plan to adopt ASU 2016-02 in the first quarter of 2019. Although we are in the process of evaluating the impact of adoption of this ASU on our consolidated financial statements, we currently believe the most significant changes will be related to the recognition of new right-of-use assets and lease liabilities on our balance sheet for operating leases.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	STOCK-BASED COMPENSATION Stock-based compensation expense reflects the fair value of stock-based awards measured at the grant date and is recognized over the requisite service period. We have two compensation plans that provide for the granting of stock options and other share-based awards to key employees and non-employee members of the Board of Directors (the “Board”). The 2009 Equity Incentive Plan (“2009 Plan”) and the 2014 Equity Incentive Plan (“2014 Plan”) provide for granting options, restricted stock, restricted stock units or stock appreciation rights to employees and non-employee directors. In May 2014, our shareholders approved the 2014 Plan, authorizing us to grant awards for up to 1,974,543 shares of common stock, as well as any shares underlying awards outstanding under the 2004 Equity Incentive Plan (the “2004 Plan”) and 2009 Plan as of the effective date of the 2014 Plan that thereafter terminate or expire unexercised or are canceled, forfeited or lapse for any reason. No awards were outstanding under the 2004 Plan as of March 31, 2018, and we will not make any further grants under the 2004 Plan or the 2009 Plan. Upon election to the Board, each non-employee director receives an initial equity grant of shares of restricted common stock with a value equal to $100,000 , calculated using the closing share price on the date of the non-employee director’s election to the Board. The initial restricted stock grant vests on the third anniversary of the grant date, subject to the non-employee director’s continued membership on the Board. Annually, the non-employee directors are granted restricted shares with a value equal to $ 100,000 on the first business day following the annual meeting of shareholders, calculated using the closing price of our common stock on that day. In addition, the Lead Director is annually granted restricted shares with a value equal to $40,000 on the first business day following the annual meeting of shareholders, calculated using the closing price of our common stock on that day. The shares of restricted stock granted annually to our non-employee directors and our Lead Director vest on the day prior to the following year’s annual meeting date, subject to the non-employee director’s continued membership on the Board. We record compensation cost associated with our restricted stock grants on a straight-line basis over the vesting term. Annually, upon approval by our Compensation Committee, we grant stock options and restricted stock units to certain employees. We also grant stock options and restricted stock units to certain new employees throughout the year. The fair value of these stock-based awards is determined by using (a) the current market price of our common stock on the grant date in the case of restricted stock units or (b) the Black-Scholes option valuation model in the case of stock options. Our annual grants in March 2018 and March 2017 consisted of stock options and restricted stock units that are subject to only time-based vesting. The number of stock options and/or restricted stock units granted was based on the employee’s individual objectives, performance against operational metrics assigned to the employee and overall contribution to FARO. The stock options vest in three equal annual installments beginning one year after the grant date. The restricted stock unit awards vest in full on the three -year anniversary of the grant date. The fair value of these stock-based awards is determined by using (a) the Black-Scholes option valuation model in the case of stock options or (b) the current market price of our common stock on the grant date in the case of restricted stock units. In 2015, we granted performance-based stock options and restricted stock units to certain executives. These awards vested in three annual installments beginning one year after the grant date if the applicable performance measures or strategic objectives were achieved. The related stock-based compensation expense was recognized over the requisite service period, taking into account the probability that we would satisfy the performance measures or strategic objectives. In addition to certain strategic objectives, the performance-based stock options and restricted stock units granted in 2015 were earned and vested based upon (1) our achievement of specified revenue and earnings per share targets, and (2) our total shareholder return (“TSR”) relative to the TSR attained by companies within our defined peer group. Due to the TSR presence in certain performance-based grants, the fair value of these awards was determined using the Monte Carlo Simulation valuation model. We expensed these market condition awards over the three -year vesting period regardless of the value the award recipients ultimately received. In March 2018, our Compensation Committee determined that 7,743 performance-based stock options and 266 restricted stock units were earned for the 2017 performance period and 17,160 stock options and 640 restricted stock units were unearned, as the required metrics were not achieved. As of March 31, 2018, all performance-based stock options and restricted stock units granted in 2015 were either vested or were forfeited because they were not earned. The Black-Scholes option valuation model incorporates assumptions as to stock price volatility, the expected life of options or awards, a risk-free interest rate and dividend yield. The weighted-average grant-date fair value of the stock options that were granted during the three months ended March 31, 2018 and March 31, 2017 and valued using the Black-Scholes option valuation model was $ 23.43 and $14.51 per option, respectively. For stock options granted during the three months ended March 31, 2018 and March 31, 2017 valued using the Black-Scholes option valuation model, we used the following assumptions: Three Months Ended March 31, March 31, Risk-free interest rate 2.65 % 2.02 % Expected dividend yield — % — % Expected term of option 4 years 5 years Expected volatility 45.0 % 45.2 % Weighted-average expected volatility 45.0 % 45.2 % Historical information was the primary basis for the selection of the expected dividend yield, expected volatility and the expected lives of the options. The risk-free interest rate was based on the yields of U.S. zero coupon issues and U.S. Treasury issues, with a term equal to the expected life of the option being valued. A summary of stock option activity and weighted-average exercise prices during the three months ended March 31, 2018 follows: Options Weighted- Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Outstanding at January 1, 2018 1,156,763 $ 45.93 Granted 174,439 61.30 Forfeited or expired (32,005 ) 40.79 Exercised (156,765 ) 43.28 Unearned performance-based options (17,160 ) 59.97 Outstanding at March 31, 2018 1,125,272 $ 48.27 4.6 $ 12,223 Options exercisable at March 31, 2018 942,658 $ 42.36 2.6 $ 6,129 The total intrinsic value of stock options exercised for the three months ended March 31, 2018 and March 31, 2017 , was $2.7 million and $0.1 million , respectively. The fair value of stock options vested during the three months ended March 31, 2018 and March 31, 2017 was $ 3.1 million and $ 2.9 million , respectively. The following table summarizes the restricted stock and restricted stock unit activity and weighted average grant-date fair values for the three months ended March 31, 2018 : Shares Weighted-Average Grant Date Fair Value Non-vested at January 1, 2018 257,492 $ 34.75 Granted 86,178 61.30 Forfeited (7,307 ) 36.28 Vested (3,104 ) 36.19 Unearned performance-based awards (640 ) 51.15 Non-vested at March 31, 2018 332,619 $ 41.59 We recorded total stock-based compensation expense of $1.6 million and $1.4 million for the three months ended March 31, 2018 and March 31, 2017 , respectively. As of March 31, 2018 , there was $16.8 million of total unrecognized stock-based compensation expense related to non-vested stock-based compensation arrangements. The expense is expected to be recognized over a weighted average period of 2.4 years.

Short Term Investments

Short Term Investments	3 Months Ended
	Mar. 31, 2018
Investments Schedule [Abstract]
Short Term Investments	SHORT TERM INVESTMENTS Short-term investments at March 31, 2018 consisted of U.S Treasury Bills totaling $11.0 million that mature through July 5, 2018. Short-term investments at December 31, 2017 consisted of U.S. Treasury Bills totaling $11.0 million that matured on January 11, 2018. The interest rate on the U.S. Treasury Bills held on March 31, 2018 is 1.45% and was less than one percent for the U.S. Treasury Bills held as of December 31, 2017. The investments are classified as held-to-maturity and recorded at cost plus accrued interest, which approximates fair value. The fair value of the U.S. Treasury Bills at March 31, 2018 and December 31, 2017 were classed as Level 1, as they are traded with sufficient frequency and volume to enable us to obtain pricing information on an ongoing basis. For further discussion of fair value, refer to Note 12 – Fair Value of Financial Instruments.

Accounts Receivable

Accounts Receivable	3 Months Ended
	Mar. 31, 2018
Receivables [Abstract]
Accounts Receivable	ACCOUNTS RECEIVABLE Accounts receivable consist of the following: As of As of Accounts receivable $ 73,642 $ 74,062 Allowance for doubtful accounts (2,011 ) (1,957 ) Total $ 71,631 $ 72,105

Inventories

Inventories	3 Months Ended
	Mar. 31, 2018
Inventory Disclosure [Abstract]
Inventories	INVENTORIES Inventories are stated at the lower of cost or net realizable value using the first-in first-out (FIFO) method. We have three principal categories of inventory: 1) manufactured product to be sold; 2) sales demonstration inventory - completed product used to support our sales force and demonstrations; and 3) service inventory - completed product and parts used to support our service department. Shipping and handling costs associated with third party sales transactions are classified as a component of cost of sales in our condensed consolidated statements of operations. Sales demonstration inventory is held by our sales representatives for up to three years , at which time it would be refurbished and transferred to finished goods as used equipment, stated at the lower of cost or net realizable value. Management expects these refurbished units to remain in finished goods inventory and to be sold within 12 months at prices that may produce reduced gross margins. Service inventory is used to provide a temporary replacement product to a customer covered by a premium warranty when the customer’s unit requires service or repair and as training equipment. Service inventory is available for sale; however, management does not expect service inventory to be sold within 12 months and, as such, classifies this inventory as a long-term asset. Service inventory that we utilize for training or repairs and which we deem as no longer available for sale is transferred to fixed assets at the lower of cost or net realizable value and depreciated over the remaining life, typically three years. Inventories consist of the following: As of As of Raw materials $ 37,406 $ 36,328 Finished goods 20,970 17,458 Inventories, net $ 58,376 $ 53,786 Service and sales demonstration inventory, net $ 41,703 $ 39,614

Earnings (Loss) Per Share

Earnings (Loss) Per Share	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
Earnings (Loss) Per Share	EARNINGS (LOSS) PER SHARE Basic earnings (loss) per share is computed by dividing net income or (loss) by the weighted average number of shares outstanding. Diluted earnings per share is computed by also considering the impact of potential common stock on both net income and the weighted average number of shares outstanding. Our potential common stock consists of employee stock options, restricted stock units and performance-based awards. Our potential common stock is included in the diluted earnings per share calculation, when adding such potential common stock would not be anti-dilutive. Performance-based awards are included in the computation of diluted earnings per share only to the extent that the underlying performance conditions (and any applicable market condition) (i) are satisfied as of the end of the reporting period or (ii) would be considered satisfied if the end of the reporting period were the end of the related contingency period and the result would be dilutive under the treasury stock method. When we report a net loss, which we did for the three months ended March 31, 2017 , the calculation of diluted net loss per share excludes our potential common stock, as the effect would be anti-dilutive. For the three months ended March 31, 2018 and March 31, 2017, there were approximately 655,944 shares and 1,108,139 shares, respectively, issuable upon the exercise of options and the contingent vesting of performance-based awards that were excluded from the dilutive calculations, as they were anti-dilutive. A reconciliation of the number of common shares used in the calculation of basic and diluted earnings per share (“EPS”) is presented below: Three Months Ended March 31, 2018 March 31, 2017 Shares Per-Share Amount Shares Per-Share Amount Basic earnings (loss) per share 16,837,754 $ 0.03 16,684,164 $ (0.09 ) Effect of dilutive securities 305,016 — — — Diluted earnings (loss) per share 17,142,770 $ 0.03 16,684,164 $ (0.09 )

Accrued Liabilities

Accrued Liabilities	3 Months Ended
	Mar. 31, 2018
Payables and Accruals [Abstract]
Accrued Liabilities	ACCRUED LIABILITIES Accrued liabilities consist of the following: As of As of Accrued compensation and benefits $ 13,706 $ 16,144 Accrued warranties 2,475 2,628 Professional and legal fees 1,839 1,541 Taxes other than income 2,778 3,787 Other accrued liabilities 3,569 3,262 $ 24,367 $ 27,362 Activity related to accrued warranties was as follows: Three Months Ended March 31, 2018 March 31, 2017 Balance, beginning of period $ 2,628 $ 2,594 Provision for warranty expense 914 874 Fulfillment of warranty obligations (1,067 ) (1,114 ) Balance, end of period $ 2,475 $ 2,354

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Income Taxes	INCOME TAXES For the three months ended March 31, 2018 , we recorded income tax expense of $0.1 million compared with an income tax benefit of $0.5 million for the three months ended March 31, 2017 . Our effective tax rate was 21.8% for the three months ended March 31, 2018 compared with a 24.4% benefit in the prior year period. The change in our income tax expense (benefit) was primarily due to pretax income during the three months ended March 31, 2018 compared to a pretax loss during the three months ended March 31, 2017 . On December 22, 2017, the United States enacted the U.S. Tax Cuts and Jobs Act (the “Tax Cuts Act”), resulting in significant modifications to existing tax law. We are following the guidance in SEC Staff Accounting Bulletin 118 (“SAB 118”), which provides additional clarification regarding the application of ASC Topic 740 in situations where a company does not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting for certain income tax effects of the Tax Cuts Act for the reporting period in which the Tax Cuts Act was enacted. SAB 118 provides for a measurement period beginning in the reporting period that includes the Tax Cuts Act's December 2017 enactment date and ending when we have obtained, prepared, and analyzed the information needed in order to complete the accounting for such income tax effects, but in no circumstances will the measurement period extend beyond one year from the enactment date. Under the Tax Cuts Act, changes include lowering the statutory corporate tax rate from 35% to 21%, eliminating certain deductions, imposing a mandatory tax on accumulated earnings in foreign subsidiaries, introducing new tax regimes, and changing how foreign earnings are subject to United States taxation. The statutory corporate tax rate reduction is effective for tax years beginning on or after January 1, 2018. Based on our best estimate, we have calculated the impact of the Tax Cuts Act in our current tax provision in accordance with our understanding of the Tax Cuts Act and available guidance. The portion of the provisional amount that related to the transition tax on the mandatory deemed repatriation of foreign earnings was $17.4 million based on our best estimate and guidance available as of the date of this filing, which was recorded in the fourth quarter of 2017. The provisional amount related to the transition tax on the mandatory deemed repatriation of foreign earnings has not changed as of March 31, 2018 when compared to December 31, 2017 . Additional work is necessary to perform a more detailed analysis of historical foreign earnings. Upon gathering all necessary data, interpreting any additional guidance from tax authorities, and completing the analysis, our provisional amount will be adjusted in the measurement period allowable in accordance with SAB 118. Our provisional amount relating to the transition tax may materially differ upon completing the analysis compared to the amount accrued as of March 31, 2018 . We expect our analysis to be completed when our 2017 United States tax return is filed in the fourth quarter of 2018. Additionally, the Tax Cuts Act included a new provision designed to impose a tax on global intangible low-taxed income (“GILTI”) of foreign subsidiaries which allows the possibility of using foreign tax credits to offset the tax liability, subject to some limitations. For the three months ended March 31, 2018, our income tax expense included an estimate of the current GILTI impact on our tax provision, which we currently estimate would result in a tax liability of approximately $0.7 million for the year ended December 31, 2018. Based on our current forecast of taxable income for the United States and foreign tax jurisdictions, the estimated $0.7 million GILTI tax liability would be fully offset by the utilization of foreign tax credits and have an immaterial impact on our income tax expense for the year ended December 31, 2018. Our amount relating to GILTI may materially differ if the geographical mix of taxable earnings or total taxable earnings change compared to the assumptions used in our forecast.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2018
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	FAIR VALUE OF FINANCIAL INSTRUMENTS Our financial instruments include cash and cash equivalents, short-term investments, accounts receivable, customer deposits, accounts payable and accrued liabilities. The carrying amounts of such financial instruments approximate their fair value due to the short-term nature of these instruments. Assets and liabilities measured at fair value on a recurring basis are categorized in the tables below based upon the lowest level of significant input to the valuations: As of March 31, 2018 Level 1 Level 2 Level 3 Assets: Short-term investments (1) $ 10,957 $ — $ — Total $ 10,957 $ — $ — Liabilities: Contingent consideration (2) $ — $ — $ 1,019 Total $ — $ — $ 1,019 Level 1 Level 2 Level 3 Assets: Short-term investments (1) $ 10,997 $ — $ — Total $ 10,997 $ — $ — Liabilities: Contingent consideration (2) $ — $ — $ 412 Total $ — $ — $ 412 (1) Short-term investments in the accompanying consolidated balance sheets are U.S. Treasury Bills. The fair values of these assets are based on Level 1 inputs in the fair value hierarchy. (2) Contingent consideration liability represents arrangements to pay the former owners of certain companies we acquired. The remaining undiscounted maximum payment under the arrangements is $1.1 million . We did not pay any amounts as part of these arrangements during the three months ended March 31, 2018 . The change in the fair value of the contingent consideration from December 31, 2017 to March 31, 2018 is primarily related to our acquisition of Laser Control Systems Limited on March 9, 2018. See Note 15 – Business Combinations for further information regarding that acquisition.

Segment Reporting

Segment Reporting	3 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
Segment Reporting	SEGMENT REPORTING We have three reportable segments; 3D Factory, Construction BIM, and Emerging Verticals. These segments are based upon the vertical markets that we currently serve. Business activities that do not meet the criteria to be reportable segments are aggregated in the Emerging Verticals category. We develop, manufacture, market, support and sell CAD-based quality assurance products integrated with CAD-based inspection and statistical process control software and three-dimensional documentation systems in each of these reportable segments. These activities represent more than 99% of consolidated sales. Our Chief Operating Decision Maker (CODM), our Chief Executive Officer, evaluates segment performance and allocates resources based upon profitable growth. We use segment profit to evaluate the performance of our reportable segments. Segment profit is calculated as gross profit, net of selling and marketing expenses, for the reporting segment. Our definition of segment profit may not be comparable to similarly-titled measures reported by other companies. Our segment structure presented below represents a change from the prior year as further described in Note 1 – Description of Business. The amounts for the three months ended March 31, 2017 have been restated to reflect the change in reporting segments. Each of our segments employs consistent accounting policies. The following tables present information about our reportable segments, including a reconciliation of total segment profit to Income (Loss) from Operations included in the condensed consolidated statements of operations for the three months ended March 31, 2018 and 2017: 3D Factory Construction BIM Emerging Verticals Total Three Months Ended March 31, 2018 Total sales $ 61,358 $ 22,682 $ 8,794 $ 92,834 Segment profit $ 18,372 $ 6,451 $ 692 $ 25,515 General and administrative 11,073 Depreciation and amortization 4,343 Research and development 9,406 Income from operations $ 693 3D Factory Construction BIM Emerging Verticals Total Three Months Ended March 31, 2017 Total sales $ 57,222 $ 18,941 $ 5,399 $ 81,562 Segment profit $ 16,669 $ 4,078 $ 130 $ 20,877 General and administrative 10,699 Depreciation and amortization 3,718 Research and development 8,466 Loss from operations $ (2,006 )

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	COMMITMENTS AND CONTINGENCIES Leases — We lease buildings and equipment in the normal course of business under non-cancellable operating leases that expire in or before 2026 . Total obligations under these leases are approximately $6.6 million for 2018 . Purchase Commitments — We enter into purchase commitments for products and services in the ordinary course of business. These purchases generally cover production requirements for 60 to 120 days as well as materials necessary to service customer units through the product lifecycle and for warranty commitments. As of March 31, 2018 , we had approximately $53.0 million in purchase commitments that are expected to be delivered within the next 12 months. To ensure adequate component availability in preparation for new product introductions, as of March 31, 2018, we also had $11.1 million in long-term commitments for purchases to be delivered after 12 months. Legal Proceedings — We are not involved in any legal proceedings other than routine litigation arising in the normal course of business, none of which we believe will have a material adverse effect on our business, financial condition or results of operations.

Business Combinations

Business Combinations	3 Months Ended
	Mar. 31, 2018
Business Combinations [Abstract]
Business Combinations	BUSINESS COMBINATIONS In April 2017, we completed the acquisition of substantially all of the assets of Instrument Associates, LLC d/b/a Nutfield Technology (“Nutfield”), a component technology business located in Hudson, New Hampshire, which specializes in the design and manufacture of advanced galvanometer-based optical scanners, scan heads and laser kits, for a total purchase price of approximately $5.5 million . This acquisition supports our long-term strategy to expand our presence in key markets and improve our existing product lines with innovative technology. The results of the acquired business’ operations as of and after the date of acquisition have been included in our condensed consolidated financial statements for the three months ended March 31, 2018 . The acquisition of Nutfield constitutes a business combination as defined by ASC Topic 805. Accordingly, the assets acquired and liabilities assumed were recorded at their fair values on the date of acquisition. Following is a summary of our final allocation of the purchase price to the fair values of the assets acquired and liabilities assumed as of the date of the Nutfield acquisition: Nutfield Accounts receivable $ 160 Inventory 539 Other assets 96 Deferred income tax assets 131 Intangible assets 2,329 Goodwill (1) 2,357 Accounts payable and accrued liabilities (12 ) Other liabilities (104 ) Total purchase price, net of cash acquired $ 5,496 (1) A portion of the goodwill is expected to be tax deductible. Following are the details of the purchase price allocated to the intangible assets acquired for the Nutfield acquisition noted above: Nutfield Amount Weighted Average Life (Years) Trade name $ 29 1 Non-competition agreement 144 5 Technology 1,970 10 Customer relationship 95 10 Favorable in-place lease 91 12 Fair value of intangible assets acquired $ 2,329 10 The goodwill for the Nutfield acquisition has been allocated to the 3D Factory reporting segment. On March 9, 2018, we acquired all of the outstanding shares of Laser Control Systems Limited, a laser component technology business located in Bedfordshire, United Kingdom, which specializes in the design and manufacture of advanced digital scan heads and laser software, for a purchase price of $1.7 million . An additional $0.7 million in contingent consideration may be earned by the former owners if certain milestones are met. The preliminary values of the assets acquired were allocated to goodwill and intangible assets in the amounts of $0.4 million and $1.9 million , respectively. The preliminary value of the contingent consideration liability is $0.6 million . The goodwill relates to expected synergies from combining operations and is expected to be allocated to our 3D Factory reporting segment. This acquisition supports our long-term strategy to expand our presence in key markets and improve our existing product lines with innovative technology. The results of the acquired business’ operations as of and after the date of acquisition have been included in our condensed consolidated financial statements as of and for the three months ended March 31, 2018 . On March 16, 2018, we acquired all of the outstanding shares of Photocore AG, a vision-based 3D measurement application and software developer, for a total purchase price of $2.4 million . The preliminary values of the assets acquired were allocated to goodwill and intangible assets in the amounts of $1.0 million and $1.4 million , respectively. The goodwill relates to expected synergies from combining operations and is expected to be allocated to our Construction BIM and Emerging Verticals reporting segments. This acquisition supports our long-term strategy to improve our existing software offerings with innovative technology. The results of the acquired business’ operations as of and after the date of acquisition have been included in our condensed consolidated financial statements as of and for the three months ended March 31, 2018 . Pro forma financial results for Nutfield, Laser Control Systems Limited and Photocore AG have not been presented because the effects of these transactions, individually and in the aggregate, were not material to our consolidated financial results.

Principles of Consolidation (Po

Principles of Consolidation (Policies)	3 Months Ended
	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Consolidation Policy	Our condensed consolidated financial statements include the accounts of FARO Technologies, Inc. and its subsidiaries, all of which are wholly-owned. All intercompany transactions and balances have been eliminated.
Foreign Currency Translations Policy	The financial statements of our foreign subsidiaries are translated into U.S. dollars using exchange rates in effect at period-end for assets and liabilities and average exchange rates during each reporting period for results of operations. Adjustments resulting from financial statement translations are reflected as a separate component of accumulated other comprehensive loss. Foreign currency transaction gains and losses are included in net income (loss).
Basis of Accounting Policy	The accompanying unaudited condensed consolidated financial statements and notes thereto have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions of Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These condensed consolidated financial statements include all normal recurring accruals and adjustments considered necessary by management for a fair presentation in conformity with U.S. GAAP.
Use of Estimates Policy	Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates.
Impact of Recently Adopted and Recently Issued Accounting Standards Policy	Impact of Recently Adopted Accounting Standards - In January 2017, the FASB issued Accounting Standards Update (“ASU”) No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (“ASU 2017-01”) in order to clarify the definition of a business and provide additional guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASC Topic 805 recognizes three elements of a business: inputs, processes, and outputs. While an integrated set of assets and activities (collectively referred to as a “set”) that is a business usually has outputs, outputs are not required to be present. Additionally, all the inputs and processes that a seller uses in operating a set are not required if market participants can acquire the set and continue to produce outputs. ASU 2017-01 provides a screen to determine when a set is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. If the screen is not met, the new guidance (1) requires that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (2) removes the evaluation of whether a market participant could replace missing elements. The new guidance provides a framework to assist entities in evaluating whether both an input and a substantive process are present. This framework includes two sets of criteria to consider that depend on whether a set has outputs. Although outputs are not required for a set to be a business, outputs generally are a key element of a business. ASU 2017-01 provides more stringent criteria for sets without outputs and more narrowly defines the term output. ASU 2017-01 became effective for us on January 1, 2018 and was applied prospectively. Our adoption of the new guidance did not have a material impact on our consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory (“ASU 2016-16”), which removes the prohibition in ASC Topic 740 against the immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory. This ASU requires the tax effects of intercompany transactions, other than sales of inventory, to be recognized when the transfer occurs, instead of deferred until the transferred asset is sold to a third party or otherwise recovered through use of the asset. The new guidance must be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. ASU 2016-16 became effective for us on January 1, 2018 and was applied on a modified retrospective basis. Our adoption of the new guidance did not have a material impact on our consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”), which clarifies how companies present and classify certain cash receipts and cash payments in the statement of cash flows. ASU 2016-15 became effective for us on January 1, 2018 and was applied on a modified retrospective basis. Our adoption of the new guidance did not have a material impact on our consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers: (Topic 606) (“ASU 2014-09”), amending its accounting guidance related to revenue recognition. Under this ASU and subsequently issued amendments, revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additional disclosures are required to provide the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The following represents the impact of our adoption by significant revenue stream: • Measurement equipment and related software: Under the prior accounting guidance, sales of measurement, imaging and realization equipment and related software sales were generally recognized upon shipment, as we considered the earnings process complete as of the shipping date. The related software sold with our measurement, imaging and realization equipment functions together with such equipment to deliver the tangible product’s essential functionality. Customers frequently purchase extended warranties when purchasing measurement equipment and related software. Under the new guidance, we allocate the contract price to performance obligations based on our best estimate of the standalone selling price, utilizing data from the sale of our applicable products and services to customers separately in similar circumstances, with the exception of software licenses. We use the residual method for allocating the contract price to performance obligations relating to software licenses. Our adoption of the new guidance did not result in material changes to our accounting for revenue related to our measurement, imaging and realization equipment and related software. • Extended warranties: Under the prior accounting guidance, extended warranty sales were recognized on a straight-line basis over the term of the warranty. Extended warranty sales include contract periods that extend between one month and three years . The unearned service revenues reported in current and noncurrent liabilities on our condensed consolidated balance sheets appropriately reflect the remaining performance obligations related to these contracts. Our adoption of the new guidance did not result in material changes to our accounting for revenue related to extended warranties. • Software: Under the prior accounting guidance, software only sales were recognized when no further significant production, modification or customization of the software was required and when the following criteria were met: persuasive evidence of a sales agreement existed, delivery had occurred, and the sales price was fixed or determinable and deemed collectible. These software arrangements generally include short-term maintenance that is considered post-contract support. Maintenance renewals, when sold, were recognized on a straight-line basis over the term of the maintenance agreement. Our adoption of the new guidance did not result in material changes to our accounting for revenue related to software only sales and maintenance renewals. The unearned service revenue liabilities reported on our condensed consolidated balance sheets reflect the contract liabilities to satisfy the remaining performance obligations for extended warranties and software maintenance. The current portion of unearned service revenues on our condensed consolidated balance sheets is what we expect to recognize to revenue within twelve months after the applicable balance sheet date relating to extended warranty and software maintenance contract liabilities. The unearned service revenues - less current portion on our condensed consolidated balance sheets is what we expect to recognize to revenue extending beyond twelve months after the applicable balance sheet date relating to extended warranty and software maintenance contract liabilities. Customer deposits on our condensed consolidated balance sheets represent customer prepayments on contracts for performance obligations that we must satisfy in the future to recognize the related contract revenue. During the three months ended March 31, 2018, we recognized $9.0 million of service revenue that was deferred on our consolidated balance sheet as of December 31, 2017. Under the prior accounting guidance, we recognized sales commission expense as incurred. Under the new guidance, we must capitalize commission expense and amortize such costs ratably over the term of the contract. In accordance with the modified retrospective method of adoption, we recorded a net increase to opening retained earnings as of January 1, 2018 of $2.4 million and recognized an associated $2.4 million deferred cost asset due to the cumulative impact of adopting the new guidance. As of March 31, 2018, the deferred cost asset related to deferred commissions was approximately $2.5 million . For classification purposes, $1.8 million and $0.7 million are comprised within the Prepaid expenses and other current assets and Other long-term assets, respectively, on our condensed consolidated balance sheet. The impact of adopting the new guidance was not material to the consolidated operating results for the three months ended March 31, 2018. We have elected to account for shipping and handling as activities to fulfill the promise to transfer the good. As such, shipping and handling fees billed to customers in a sales transaction are recorded in Sales and shipping and handling costs incurred are recorded in Cost of sales. Additionally, we have elected to exclude from Sales any value add, sales and other taxes that we collect concurrent with revenue-producing activities. These accounting policy elections are consistent with the manner in which we have historically recorded shipping and handling fees and taxes. The nature of certain of our contracts gives rise to variable consideration, which may be constrained, primarily related to an allowance for sales returns. In accordance with the adoption of the new guidance, we are required to estimate the contract asset related to sales returns and record a corresponding adjustment to Cost of Sales. Historically, our allowance for sales returns has not been material and was less than $0.1 million as of March 31, 2018. As such, our adoption of the new guidance did not result in material changes to our accounting for variable consideration related to sales returns, and the corresponding contract asset related to such returns. Impact of Recently Issued Accounting Standards - In January 2017, the FASB issued ASU No. 2017-04, Intangible - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”), which is intended to simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Under the current guidance, performance of Step 2 requires us to calculate the implied fair value of goodwill by following procedures that would be required to determine the fair value of assets acquired and liabilities assumed in a business combination. Under the new guidance, we will perform our goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge will be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value up to the amount of the goodwill allocated to the reporting unit. The new guidance also eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform Step 2 of the goodwill impairment test if it fails the qualitative assessment. As a result, all reporting units will be subject to the same impairment assessment. We will still have the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. ASU 2017-04 becomes effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted for annual or any interim goodwill impairment tests after January 1, 2017. The amendments in this ASU will be applied on a prospective basis. Disclosure of the nature and reason for the change in accounting principle is required upon transition. This disclosure is required in the first annual period and in the interim period within the first annual period when we initially adopt the amendments in this ASU. We plan to adopt this guidance for our fiscal year ending December 31, 2020. We do not expect that the adoption of this guidance will have a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”), which is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements to enable users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. ASU 2016-02 must be applied on a modified retrospective basis and is effective for fiscal years beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. We plan to adopt ASU 2016-02 in the first quarter of 2019. Although we are in the process of evaluating the impact of adoption of this ASU on our consolidated financial statements, we currently believe the most significant changes will be related to the recognition of new right-of-use assets and lease liabilities on our balance sheet for operating leases.
Inventory Policy	Inventories are stated at the lower of cost or net realizable value using the first-in first-out (FIFO) method. We have three principal categories of inventory: 1) manufactured product to be sold; 2) sales demonstration inventory - completed product used to support our sales force and demonstrations; and 3) service inventory - completed product and parts used to support our service department. Shipping and handling costs associated with third party sales transactions are classified as a component of cost of sales in our condensed consolidated statements of operations. Sales demonstration inventory is held by our sales representatives for up to three years , at which time it would be refurbished and transferred to finished goods as used equipment, stated at the lower of cost or net realizable value. Management expects these refurbished units to remain in finished goods inventory and to be sold within 12 months at prices that may produce reduced gross margins. Service inventory is used to provide a temporary replacement product to a customer covered by a premium warranty when the customer’s unit requires service or repair and as training equipment. Service inventory is available for sale; however, management does not expect service inventory to be sold within 12 months and, as such, classifies this inventory as a long-term asset. Service inventory that we utilize for training or repairs and which we deem as no longer available for sale is transferred to fixed assets at the lower of cost or net realizable value and depreciated over the remaining life, typically three years.

Impact of Recently Issued Acc23

Impact of Recently Issued Accounting Pronouncements (Tables)	3 Months Ended
	Mar. 31, 2018
Accounting Changes and Error Corrections [Abstract]
Disaggregation of Revenue	The following tables present our revenues by Sales type as presented in our condensed consolidated statements of operations disaggregated by the timing of transfer of goods or services (in thousands, unaudited): For the Three Months Ended March 31, 2018 2017 Product sales Product transferred to customers at a point in time $ 70,581 $ 62,380 Product transferred to customers over time — — $ 70,581 $ 62,380 For the Three Months Ended March 31, 2018 2017 Service sales Service transferred to customers at a point in time $ 9,452 $ 8,642 Service transferred to customers over time 12,801 10,540 $ 22,253 $ 19,182 The following table presents our revenues disaggregated by geography, based on the billing addresses of our customers (in thousands, unaudited): For the Three Months Ended March 31, 2018 2017 Net sales to external customers United States $ 37,302 $ 31,770 EMEA (1) 29,680 24,960 APAC (1) 22,589 21,260 Other Americas (1) 3,263 3,572 $ 92,834 $ 81,562 (1) Regions represent Europe, the Middle East, and Africa (EMEA); Asia-Pacific (APAC); and Canada and Latin America (Other Americas)

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule of Stock Option Activity and Weighted Average Exercise Prices	A summary of stock option activity and weighted-average exercise prices during the three months ended March 31, 2018 follows: Options Weighted- Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Outstanding at January 1, 2018 1,156,763 $ 45.93 Granted 174,439 61.30 Forfeited or expired (32,005 ) 40.79 Exercised (156,765 ) 43.28 Unearned performance-based options (17,160 ) 59.97 Outstanding at March 31, 2018 1,125,272 $ 48.27 4.6 $ 12,223 Options exercisable at March 31, 2018 942,658 $ 42.36 2.6 $ 6,129
Schedule of Restricted Stock and Restricted Stock Units Activity and Weighted-Average Grant Date Fair Value	The following table summarizes the restricted stock and restricted stock unit activity and weighted average grant-date fair values for the three months ended March 31, 2018 : Shares Weighted-Average Grant Date Fair Value Non-vested at January 1, 2018 257,492 $ 34.75 Granted 86,178 61.30 Forfeited (7,307 ) 36.28 Vested (3,104 ) 36.19 Unearned performance-based awards (640 ) 51.15 Non-vested at March 31, 2018 332,619 $ 41.59
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule of Valuation Assumptions	For stock options granted during the three months ended March 31, 2018 and March 31, 2017 valued using the Black-Scholes option valuation model, we used the following assumptions: Three Months Ended March 31, March 31, Risk-free interest rate 2.65 % 2.02 % Expected dividend yield — % — % Expected term of option 4 years 5 years Expected volatility 45.0 % 45.2 % Weighted-average expected volatility 45.0 % 45.2 %

Accounts Receivable (Tables)

Accounts Receivable (Tables)	3 Months Ended
	Mar. 31, 2018
Receivables [Abstract]
Schedule of Accounts Receivable	Accounts receivable consist of the following: As of As of Accounts receivable $ 73,642 $ 74,062 Allowance for doubtful accounts (2,011 ) (1,957 ) Total $ 71,631 $ 72,105

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2018
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventories consist of the following: As of As of Raw materials $ 37,406 $ 36,328 Finished goods 20,970 17,458 Inventories, net $ 58,376 $ 53,786 Service and sales demonstration inventory, net $ 41,703 $ 39,614

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
Reconciliation of Number of Common Shares Used in Calculation of Basic and Diluted Earnings Per Share (EPS)	A reconciliation of the number of common shares used in the calculation of basic and diluted earnings per share (“EPS”) is presented below: Three Months Ended March 31, 2018 March 31, 2017 Shares Per-Share Amount Shares Per-Share Amount Basic earnings (loss) per share 16,837,754 $ 0.03 16,684,164 $ (0.09 ) Effect of dilutive securities 305,016 — — — Diluted earnings (loss) per share 17,142,770 $ 0.03 16,684,164 $ (0.09 )

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	3 Months Ended
	Mar. 31, 2018
Payables and Accruals [Abstract]
Schedule of Accrued Liabilities	Accrued liabilities consist of the following: As of As of Accrued compensation and benefits $ 13,706 $ 16,144 Accrued warranties 2,475 2,628 Professional and legal fees 1,839 1,541 Taxes other than income 2,778 3,787 Other accrued liabilities 3,569 3,262 $ 24,367 $ 27,362
Schedule of Activity Related to Accrued Warranties	Activity related to accrued warranties was as follows: Three Months Ended March 31, 2018 March 31, 2017 Balance, beginning of period $ 2,628 $ 2,594 Provision for warranty expense 914 874 Fulfillment of warranty obligations (1,067 ) (1,114 ) Balance, end of period $ 2,475 $ 2,354

Fair Value of Financial Instr29

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2018
Fair Value Disclosures [Abstract]
Assets and Liabilities Measured at Fair Value on a Recurring Basis	Assets and liabilities measured at fair value on a recurring basis are categorized in the tables below based upon the lowest level of significant input to the valuations: As of March 31, 2018 Level 1 Level 2 Level 3 Assets: Short-term investments (1) $ 10,957 $ — $ — Total $ 10,957 $ — $ — Liabilities: Contingent consideration (2) $ — $ — $ 1,019 Total $ — $ — $ 1,019 Level 1 Level 2 Level 3 Assets: Short-term investments (1) $ 10,997 $ — $ — Total $ 10,997 $ — $ — Liabilities: Contingent consideration (2) $ — $ — $ 412 Total $ — $ — $ 412 (1) Short-term investments in the accompanying consolidated balance sheets are U.S. Treasury Bills. The fair values of these assets are based on Level 1 inputs in the fair value hierarchy. (2) Contingent consideration liability represents arrangements to pay the former owners of certain companies we acquired. The remaining undiscounted maximum payment under the arrangements is $1.1 million . We did not pay any amounts as part of these arrangements during the three months ended March 31, 2018 . The change in the fair value of the contingent consideration from December 31, 2017 to March 31, 2018 is primarily related to our acquisition of Laser Control Systems Limited on March 9, 2018. See Note 15 – Business Combinations for further information regarding that acquisition.

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
Schedule of Segment Reporting Information	The following tables present information about our reportable segments, including a reconciliation of total segment profit to Income (Loss) from Operations included in the condensed consolidated statements of operations for the three months ended March 31, 2018 and 2017: 3D Factory Construction BIM Emerging Verticals Total Three Months Ended March 31, 2018 Total sales $ 61,358 $ 22,682 $ 8,794 $ 92,834 Segment profit $ 18,372 $ 6,451 $ 692 $ 25,515 General and administrative 11,073 Depreciation and amortization 4,343 Research and development 9,406 Income from operations $ 693 3D Factory Construction BIM Emerging Verticals Total Three Months Ended March 31, 2017 Total sales $ 57,222 $ 18,941 $ 5,399 $ 81,562 Segment profit $ 16,669 $ 4,078 $ 130 $ 20,877 General and administrative 10,699 Depreciation and amortization 3,718 Research and development 8,466 Loss from operations $ (2,006 )

Business Combinations (Tables)

Business Combinations (Tables)	3 Months Ended
	Mar. 31, 2018
Business Combinations [Abstract]
Schedule of Fair Values of Assets Acquired and Liabilities Assumed for Acquisitions	Following is a summary of our final allocation of the purchase price to the fair values of the assets acquired and liabilities assumed as of the date of the Nutfield acquisition: Nutfield Accounts receivable $ 160 Inventory 539 Other assets 96 Deferred income tax assets 131 Intangible assets 2,329 Goodwill (1) 2,357 Accounts payable and accrued liabilities (12 ) Other liabilities (104 ) Total purchase price, net of cash acquired $ 5,496 (1) A portion of the goodwill is expected to be tax deductible.
Summary of the Purchase Price Preliminarily Allocated to the Intangible Assets Acquired for the Acquisitions	Following are the details of the purchase price allocated to the intangible assets acquired for the Nutfield acquisition noted above: Nutfield Amount Weighted Average Life (Years) Trade name $ 29 1 Non-competition agreement 144 5 Technology 1,970 10 Customer relationship 95 10 Favorable in-place lease 91 12 Fair value of intangible assets acquired $ 2,329 10

Description of Business (Detail

Description of Business (Details)	3 Months Ended
	Mar. 31, 2018segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments	3

Impact of Recently Issued Acc33

Impact of Recently Issued Accounting Pronouncements - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	$ 92,834	$ 81,562
United States
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	37,302	31,770
EMEA
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	29,680	24,960
APAC
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	22,589	21,260
Other Americas
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	3,263	3,572
Product sales
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	70,581	62,380
Product sales | Product transferred to customers at a point in time
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	70,581	62,380
Product sales | Product transferred to customers over time
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	0	0
Service sales
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	22,253	19,182
Service sales | Product transferred to customers at a point in time
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	9,452	8,642
Service sales | Product transferred to customers over time
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	$ 12,801	$ 10,540

Impact of Recently Issued Acc34

Impact of Recently Issued Accounting Pronouncements - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Jan. 01, 2018	Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Service revenue recognized	$ 9,000
Retained earnings	171,444		$ 168,624
Deferred cost asset	2,500
Allowance for sales returns (less than)	100
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained earnings		$ 2,400
Deferred cost asset		$ 2,400
Prepaid expenses and other current assets
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred cost asset	1,800
Other long-term assets
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred cost asset	$ 700
Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Extended product warranty term	1 month
Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Extended product warranty term	3 years

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details)	1 Months Ended	3 Months Ended
	Mar. 31, 2018USD ($)planshares	Mar. 31, 2018USD ($)plan$ / sharesshares	Mar. 31, 2017USD ($)$ / shares	May 31, 2014shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of compensation plans | plan	2	2
Fair value of stock options vested | $		$ 3,100,000	$ 2,900,000
Allocated share-based compensation expense | $		1,600,000	1,400,000
Unrecognized stock-based compensation expense | $	$ 16,800,000	$ 16,800,000
Weighted average, expected recognition period		2 years 4 months 24 days
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)		3 years
Number of restricted stock units vested (in shares)		3,104
Number of restricted stock units unvested (in shares)		640
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock options unvested (in shares)		17,160
Total intrinsic value of stock options exercised (less than) | $		$ 2,700,000	$ 100,000
Employee Stock Option | Black-Scholes Option Valuation Model
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option weighted average grant date fair value (in dollars per share) | $ / shares		$ 23.43	$ 14.51
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)		3 years
Performance Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted stock units vested (in shares)	266
Number of restricted stock units unvested (in shares)	640
Performance Based Employee Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock options vested (in shares)	7,743
Number of stock options unvested (in shares)	17,160
March 2018 | Year One | Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment (as a percent)		33.33%
March 2018 | Year One | Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment (as a percent)		33.33%
March 2018 | Year Two | Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment (as a percent)		33.33%
March 2018 | Year Two | Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment (as a percent)		33.33%
March 2018 | Year Three | Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment (as a percent)		33.33%
March 2018 | Year Three | Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment (as a percent)		33.33%
March 2017 | Year One | Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment (as a percent)		33.33%
March 2017 | Year One | Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment (as a percent)		33.33%
March 2017 | Year Two | Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment (as a percent)		33.33%
March 2017 | Year Two | Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment (as a percent)		33.33%
March 2017 | Year Three | Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment (as a percent)		33.33%
March 2017 | Year Three | Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment (as a percent)		33.33%
2015 | Year One | Performance Based Restricted Stock Units | Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment (as a percent)		33.33%
2015 | Year One | Performance Based Employee Stock Options | Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment (as a percent)		33.33%
2015 | Year Two | Performance Based Restricted Stock Units | Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment (as a percent)		33.33%
2015 | Year Two | Performance Based Employee Stock Options | Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment (as a percent)		33.33%
2015 | Year Three | Performance Based Restricted Stock Units | Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment (as a percent)		33.33%
2015 | Year Three | Performance Based Employee Stock Options | Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment (as a percent)		33.33%
2014 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards authorized to grant (in shares)				1,974,543
Directors Plan | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term for value of shares to be granted upon election | $		$ 100,000
Directors Plan | Restricted Stock | Lead Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term for value of shares to be granted upon election | $		$ 40,000

Stock-Based Compensation - Assu

Stock-Based Compensation - Assumptions Used to Estimate The Fair Value of Time-Based Stock Options (Details) - Employee Stock Option	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Risk-free Interest rate (as a percentage)	2.65%	2.02%
Expected dividend yield (as a percent)	0.00%	0.00%
Expected term of option (in years)	4 years	5 years
Expected volatility (as a percent)	45.00%	45.20%
Weighted-average expected volatility (as a percent)	45.00%	45.20%

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule of Stock Option Activity and Weighted Average Exercise Prices (Details) - Employee Stock Option - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018
Options
Outstanding at January 1, 2018 (in shares)	1,156,763
Granted (in shares)	174,439
Forfeited or expired (in shares)	(32,005)
Exercised (in shares)	(156,765)
Unearned performance-based options (in shares)	(17,160)
Outstanding at March 31, 2018 (in shares)	1,125,272
Options exercisable at March 31, 2018 (in shares)	942,658
Weighted- Average Exercise Price
Outstanding at January 1, 2018 (in dollars per share)	$ 45.93
Granted (in dollars per share)	61.30
Forfeited or expired (in dollars per share)	40.79
Exercised (in dollars per share)	43.28
Unearned performance-based options (in dollars per share)	59.97
Outstanding at March 31, 2018 (in dollars per share)	48.27
Options exercisable at March 31, 2018 (in dollars per share)	$ 42.36
Weighted-Average Remaining Contractual Term (Years)
Weighted-average remaining contractual term, outstanding at March 31, 2018	4 years 7 months 6 days
Weighted-average remaining contractual term, options exercisable at March 31, 2018	2 years 7 months
Aggregate Intrinsic Value as of March 31, 2018
Aggregate intrinsic value outstanding at March 31, 2018	$ 12,223
Aggregate intrinsic value of options exercisable at March 31, 2018	$ 6,129

Stock-Based Compensation - Sc38

Stock-Based Compensation - Schedule of Restricted Stock Unit Activity and Weighted Average Grant Date Fair Value (Details) - Restricted Stock Units	3 Months Ended
	Mar. 31, 2018$ / sharesshares
Shares
Non-vested at January 1, 2018 (in shares) | shares	257,492
Granted (in shares) | shares	86,178
Forfeited (in shares) | shares	(7,307)
Vested (in shares) | shares	(3,104)
Unearned performance-based awards (in shares) | shares	(640)
Non-vested at March 31, 2018 (in shares) | shares	332,619
Weighted-Average Grant Date Fair Value
Non-vested at January 1, 2018 (in dollars per share) | $ / shares	$ 34.75
Granted (in dollars per share) | $ / shares	61.30
Forfeited (in dollars per share) | $ / shares	36.28
Vested (in dollars per share) | $ / shares	36.19
Unearned performance-based awards (in dollars per share) | $ / shares	51.15
Non-vested at March 31, 2018 (in dollars per share) | $ / shares	$ 41.59

Short Term Investments - Additi

Short Term Investments - Additional Information (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Securities Purchased Under Agreements to Resell and Other Short Term Investment Securities [Line Items]
Short-term investments	$ 10,957	$ 10,997
Interest rate on U.S. Treasury Bills (less than for 2017)	1.45%	1.00%
US Treasury Bill Securities
Securities Purchased Under Agreements to Resell and Other Short Term Investment Securities [Line Items]
Short-term investments	$ 11,000	$ 11,000

Accounts Receivable - Additiona

Accounts Receivable - Additional Information (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Receivables [Abstract]
Accounts receivable	$ 73,642	$ 74,062
Allowance for doubtful accounts	(2,011)	(1,957)
Total	$ 71,631	$ 72,105

Inventories - Additional Inform

Inventories - Additional Information (Details)	3 Months Ended
	Mar. 31, 2018principal_inventory_category
Property, Plant and Equipment [Line Items]
Number of principal categories of inventory	3
Demonstration inventory shelf life (in years)	3 years
Refurbished demonstration inventory selling period (in months)	12 months
Service Inventory
Property, Plant and Equipment [Line Items]
Inventory, remaining useful life (in years)	3 years

Inventories - Schedule of Inven

Inventories - Schedule of Inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Raw materials	$ 37,406	$ 36,328
Finished goods	20,970	17,458
Inventories, net	58,376	53,786
Service and sales demonstration inventory, net	$ 41,703	$ 39,614

Earnings Per Share - Reconcilia

Earnings Per Share - Reconciliation of Number of Common Shares Used in Calculation of Basic and Diluted Earnings Per Share (EPS) (Details) - $ / shares	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Earnings Per Share [Abstract]
Antidilutive securities (in shares)	655,944	1,108,139
Basic earnings (loss) per share (in shares)	16,837,754	16,684,164
Effect of dilutive securities (in shares)	305,016	0
Diluted earnings (loss) (in shares)	17,142,770	16,684,164
Basic earnings (loss) (in dollars per share)	$ 0.03	$ (0.09)
Effect of dilutive securities (in dollars per share)	0	0
Diluted earnings (loss) (in dollars per share)	$ 0.03	$ (0.09)

Accrued Liabilities - Summary (

Accrued Liabilities - Summary (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Payables and Accruals [Abstract]
Accrued compensation and benefits	$ 13,706	$ 16,144
Accrued warranties	2,475	2,628	$ 2,354	$ 2,594
Professional and legal fees	1,839	1,541
Taxes other than income	2,778	3,787
Other accrued liabilities	3,569	3,262
Accrued liabilities	$ 24,367	$ 27,362

Accrued Liabilities - Activity

Accrued Liabilities - Activity Related to Accrued Warranties (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]
Balance, beginning of period	$ 2,628	$ 2,594
Provision for warranty expense	914	874
Fulfillment of warranty obligations	(1,067)	(1,114)
Balance, end of period	$ 2,475	$ 2,354

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended			12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 127		$ (471)
Effective tax rate	21.80%		24.40%
Tax cuts and jobs act of 2017, incomplete accounting, transition tax for accumulated foreign earnings, provisional Income tax expense		$ 17,400
Forecast
Income Tax Contingency [Line Items]
Net GILI inclusion income - tax expense				$ 700
Foreign tax credits - income tax benefit				$ 700

Fair Value of Financial Instr47

Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Level 1
Assets:
Short-term investments	$ 10,957	$ 10,997
Total	10,957	10,997
Liabilities:
Contingent consideration	0	0
Total	0	0
Level 2
Assets:
Short-term investments	0	0
Total	0	0
Liabilities:
Contingent consideration	0	0
Total	0	0
Level 3
Assets:
Short-term investments	0	0
Total	0	0
Liabilities:
Contingent consideration	1,019	412
Total	$ 1,019	$ 412

Fair Value of Financial Instr48

Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value on a Recurring Basis - Footnotes (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018USD ($)
Monte Carlo Simulation Valuation Model
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Undiscounted maximum payment under the contingent consideration arrangements	$ 1.1

Segment Reporting - Additional

Segment Reporting - Additional Information (Details)	3 Months Ended
	Mar. 31, 2018segment
Segment Reporting [Abstract]
Number of reportable segments	3
Product sales to consolidated sales (more than) (as a percent)	99.00%

Segment Reporting - Summary of

Segment Reporting - Summary of Reportable Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Segment Reporting Information [Line Items]
Total sales	$ 92,834	$ 81,562
Segment profit	53,786	43,749
General and administrative	11,073	10,699
Depreciation and amortization	4,343	3,718
Research and development	9,406	8,466
Income (loss) from operations	693	(2,006)
3D Factory
Segment Reporting Information [Line Items]
Total sales	61,358	57,222
Construction BIM
Segment Reporting Information [Line Items]
Total sales	22,682	18,941
Emerging Verticals
Segment Reporting Information [Line Items]
Total sales	8,794	5,399
Operating Segments
Segment Reporting Information [Line Items]
Segment profit	25,515	20,877
Operating Segments | 3D Factory
Segment Reporting Information [Line Items]
Segment profit	18,372	16,669
Operating Segments | Construction BIM
Segment Reporting Information [Line Items]
Segment profit	6,451	4,078
Operating Segments | Emerging Verticals
Segment Reporting Information [Line Items]
Segment profit	$ 692	$ 130

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018USD ($)
Commitments and Contingencies [Line Items]
Purchase commitment, due in next twelve months	$ 53
Purchase commitment due after twelve months	$ 11.1
Minimum
Commitments and Contingencies [Line Items]
Length of purchase commitments, (in days)	60 days
Maximum
Commitments and Contingencies [Line Items]
Length of purchase commitments, (in days)	120 days
Buildings And Equipment
Commitments and Contingencies [Line Items]
Lease future expiration date, year	2,026
Total remaining lease obligations	$ 6.6

Business Combinations - Additio

Business Combinations - Additional Information (Details) - USD ($) $ in Thousands	Mar. 16, 2018	Mar. 09, 2018	Apr. 30, 2017	Mar. 31, 2018	Dec. 31, 2017
Business Acquisition [Line Items]
Goodwill				$ 54,511	$ 52,750
Nutfield
Business Acquisition [Line Items]
Purchase price, net of cash acquired			$ 5,500
Goodwill			2,357
Intangible assets			$ 2,329
Laser Control Systems Limited
Business Acquisition [Line Items]
Purchase price, including contingent consideration		$ 1,700
Potential contingent consideration		700
Goodwill		400
Intangible assets		1,900
Contingent consideration liability		$ 600
Photocore AG
Business Acquisition [Line Items]
Purchase price, net of cash acquired	$ 2,400
Goodwill	1,000
Intangible assets	$ 1,400

Business Combinations - Purchas

Business Combinations - Purchase Price Allocation (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Apr. 30, 2017
Business Acquisition [Line Items]
Goodwill	$ 54,511	$ 52,750
Nutfield
Business Acquisition [Line Items]
Accounts receivable			$ 160
Inventory			539
Other assets			96
Deferred income tax assets			131
Intangible assets			2,329
Goodwill			2,357
Accounts payable and accrued liabilities			(12)
Other liabilities			(104)
Total purchase price, net of cash acquired			$ 5,496

Business Combinations - Summary

Business Combinations - Summary of the Purchase Price Allocated to the Intangible Assets (Details) - Nutfield $ in Thousands	1 Months Ended
	Apr. 30, 2017USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired	$ 2,329
Intangible assets acquired, weighted average life (in years)	10 years
Trade name
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired	$ 29
Intangible assets acquired, weighted average life (in years)	1 year
Non-competition agreement
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired	$ 144
Intangible assets acquired, weighted average life (in years)	5 years
Technology
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired	$ 1,970
Intangible assets acquired, weighted average life (in years)	10 years
Customer relationship
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired	$ 95
Intangible assets acquired, weighted average life (in years)	10 years
Favorable in-place lease
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired	$ 91
Intangible assets acquired, weighted average life (in years)	12 years