FARO (FARO) 10-Q 25 Jul 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Jul. 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	Jun. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		16,978,758

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 133,554	$ 140,960
Short-term investments	10,998	10,997
Accounts receivable, net	71,641	72,105
Inventories, net	60,349	53,786
Prepaid expenses and other current assets	21,086	16,311
Total current assets	297,628	294,159
Property and equipment:
Machinery and equipment	70,332	66,514
Furniture and fixtures	6,650	6,945
Leasehold improvements	20,039	19,872
Property and equipment at cost	97,021	93,331
Less: accumulated depreciation and amortization	(66,321)	(61,452)
Property and equipment, net	30,700	31,879
Goodwill	53,584	52,750
Intangible assets, net	23,842	22,540
Service and sales demonstration inventory, net	38,346	39,614
Deferred income tax assets, net	15,691	15,606
Other long-term assets	4,678	2,030
Total assets	464,469	458,578
Current liabilities:
Accounts payable	11,764	11,569
Accrued liabilities	24,950	27,362
Income taxes payable	1,672	4,676
Total current liabilities	71,509	75,885
Unearned service revenues - less current portion	13,291	11,815
Deferred income tax liabilities	590	695
Income taxes payable - less current portion	14,578	15,952
Other long-term liabilities	1,798	2,165
Total liabilities	101,766	106,512
Commitments and contingencies - See Note 16
Shareholders’ equity:
Common stock - par value $.001, 50,000,000 shares authorized; 18,440,073 and 18,277,142 issued, respectively; 16,978,758 and 16,796,884 outstanding, respectively	18	18
Additional paid-in capital	233,755	223,055
Retained earnings	172,649	168,624
Accumulated other comprehensive loss	(11,985)	(7,822)
Common stock in treasury, at cost; 1,461,315 and 1,480,258 shares, respectively	(31,734)	(31,809)
Total shareholders’ equity	362,703	352,066
Total liabilities and shareholders’ equity	464,469	458,578
Current portion of unearned service revenues
Current liabilities:
Current portion of unearned service revenues	30,179	29,674
Customer deposits	30,179	29,674
Customer deposits
Current liabilities:
Current portion of unearned service revenues	2,944	2,604
Customer deposits	$ 2,944	$ 2,604

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 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)	18,440,073	18,277,142
Common stock, shares outstanding (in shares)	16,978,758	16,796,884
Treasury stock, shares (in shares)	1,461,315	1,480,258

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Sales	$ 98,244	$ 82,682	$ 191,078	$ 164,244
Cost of Sales	40,553	35,922	79,601	73,735
Gross Profit	57,691	46,760	111,477	90,509
Operating Expenses
Selling and marketing	30,084	26,022	58,355	48,894
General and administrative	11,320	11,877	22,393	22,576
Depreciation and amortization	4,377	3,989	8,720	7,707
Research and development	9,983	9,045	19,389	17,511
Total operating expenses	55,764	50,933	108,857	96,688
Income (loss) from operations	1,927	(4,173)	2,620	(6,179)
Other expense (income)
Interest income, net	(87)	(89)	(160)	(171)
Other expense, net	509	459	693	467
Income (loss) before income tax expense (benefit)	1,505	(4,543)	2,087	(6,475)
Income tax expense (benefit)	300	(918)	427	(1,389)
Net income (loss)	$ 1,205	$ (3,625)	$ 1,660	$ (5,086)
Net income (loss) per share - Basic (in dollars per share)	$ 0.07	$ (0.22)	$ 0.10	$ (0.30)
Net income (loss) per share - Diluted (in dollars per share)	$ 0.07	$ (0.22)	$ 0.10	$ (0.30)
Weighted average shares - Basic (in shares)	16,966,928	16,700,718	16,902,390	16,692,500
Weighted average shares - Diluted (in shares)	17,264,642	16,700,718	17,210,054	16,692,500
Product
Sales	$ 75,720	$ 62,533	$ 146,301	$ 124,913
Cost of Sales	27,878	24,455	54,762	51,513
Service
Sales	22,524	20,149	44,777	39,331
Cost of Sales	$ 12,675	$ 11,467	$ 24,839	$ 22,222

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 1,205	$ (3,625)	$ 1,660	$ (5,086)
Currency translation adjustments, net of income tax	(9,377)	7,140	(4,163)	11,299
Comprehensive (loss) income	$ (8,172)	$ 3,515	$ (2,503)	$ 6,213

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Operating activities:
Net income (loss)	$ 1,660	$ (5,086)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	8,720	7,707
Stock-based compensation	3,400	3,195
Provision for bad debts	211	230
Loss on disposal of assets	165	122
Provision for excess and obsolete inventory	504	736
Deferred income tax (benefit) expense	(190)	168
Decrease (increase) in:
Accounts receivable	252	4,771
Inventories	(6,664)	(10,107)
Prepaid expenses and other current assets	(3,526)	(6,489)
(Decrease) increase in:
Accounts payable and accrued liabilities	(2,901)	1,610
Income taxes payable	(4,378)	(590)
Net cash provided by (used in) operating activities	7	(4,368)
Investing activities:
Proceeds from sale of investments	0	21,000
Purchases of property and equipment	(5,164)	(3,669)
Payments for intangible assets	(1,186)	(645)
Acquisition of businesses	(3,965)	(5,496)
Equity investments and advances to affiliates	(1,786)	0
Net cash (used in) provided by investing activities	(12,101)	11,190
Financing activities:
Payments on capital leases	(46)	(4)
Proceeds from issuance of stock related to stock option exercises	7,133	284
Net cash provided by financing activities	7,087	280
Effect of exchange rate changes on cash and cash equivalents	(2,399)	4,323
(Decrease) increase in cash and cash equivalents	(7,406)	11,425
Cash and cash equivalents, beginning of period	140,960	106,169
Cash and cash equivalents, end of period	133,554	117,594
Customer deposits
(Decrease) increase in:
Customer deposits	382	(163)
Unearned service revenues	382	(163)
Current portion of unearned service revenues
(Decrease) increase in:
Customer deposits	2,372	(472)
Unearned service revenues	$ 2,372	$ (472)

Description of Business

Description of Business	6 Months Ended
	Jun. 30, 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. 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, which replaced our Factory Metrology reporting segment, 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 and six months ended June 30, 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 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 15 – Segment Reporting for further information.

Principles of Consolidation

Principles of Consolidation	6 Months Ended
	Jun. 30, 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	6 Months Ended
	Jun. 30, 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 or six months ended June 30, 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 and six months ended June 30, 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	6 Months Ended
	Jun. 30, 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 June 30, 2018, we recognized $7.2 million of service revenue that was deferred on our consolidated balance sheet as of December 31, 2017. During the six months ended June 30, 2018, we recognized $16.2 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 June 30, 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 six months ended June 30, 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 approximately $0.1 million as of June 30, 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. See Note 5, “Revenues,” for further information. Impact of Recently Issued Accounting Standards - In January 2017, the FASB issued ASU No. 2017-04, Intangibles - 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.

Revenues

Revenues	6 Months Ended
	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
Revenues	REVENUES 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 June 30, 2018 2017 Product sales Product transferred to customers at a point in time $ 75,720 $ 62,533 Product transferred to customers over time — — $ 75,720 $ 62,533 For the Six Months Ended June 30, 2018 2017 Product sales Product transferred to customers at a point in time $ 146,301 $ 124,913 Product transferred to customers over time — — $ 146,301 $ 124,913 For the Three Months Ended June 30, 2018 2017 Service sales Service transferred to customers at a point in time $ 9,907 $ 8,530 Service transferred to customers over time 12,617 11,619 $ 22,524 $ 20,149 For the Six Months Ended June 30, 2018 2017 Service sales Service transferred to customers at a point in time $ 19,359 $ 17,172 Service transferred to customers over time 25,418 22,159 $ 44,777 $ 39,331 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 June 30, 2018 2017 Net sales to external customers United States $ 40,278 $ 32,143 EMEA (1) 29,601 24,320 APAC (1) 24,944 22,882 Other Americas (1) 3,421 3,337 $ 98,244 $ 82,682 For the Six Months Ended June 30, 2018 2017 Net sales to external customers United States $ 77,580 $ 63,913 EMEA (1) 59,281 49,280 APAC (1) 47,533 44,142 Other Americas (1) 6,684 6,909 $ 191,078 $ 164,244 (1) Regions represent Europe, the Middle East, and Africa (EMEA); Asia-Pacific (APAC); and Canada, Mexico, and Brazil (Other Americas)

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 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 (the “2009 Plan”) and the 2014 Equity Incentive Plan (the “2014 Plan”) provide for granting options, restricted stock, restricted stock units or stock appreciation rights to employees and non-employee directors. In May 2018, our shareholders approved an amendment to the 2014 Plan, which increased the number of shares available for issuance under the 2014 Plan by 1,000,000 shares. A maximum of 2,974,543 shares are available for issuance under the 2014 Plan, as amended, plus the number of shares (not to exceed 891,960 ) underlying awards outstanding under the 2004 Equity Incentive Plan (the “2004 Plan”) and the 2009 Plan as of May 29, 2014 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 June 30, 2018, and no further grants will be made 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 June 30, 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 six months ended June 30, 2018 and June 30, 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 six months ended June 30, 2018 and June 30, 2017 valued using the Black-Scholes option valuation model, we used the following assumptions: Six Months Ended June 30, June 30, Risk-free interest rate 2.65 % 1.88% - 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 approximating the expected life of the option being valued. A summary of stock option activity and weighted-average exercise prices during the six months ended June 30, 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 (60,448 ) 50.21 Exercised (162,594 ) 43.41 Unearned performance-based options (17,160 ) 59.97 Outstanding at June 30, 2018 1,091,000 $ 48.19 4.4 $ 9,585 Options exercisable at June 30, 2018 918,462 $ 42.24 2.4 $ 4,689 The total intrinsic value of stock options exercised during each of the three months ended June 30, 2018 and June 30, 2017 was less than $0.1 million . For the six months ended June 30, 2018 and June 30, 2017 , the total intrinsic value of the stock options exercised in the respective period was $2.7 million and $0.1 million . The fair value of stock options vested during each of the three months ended June 30, 2018 and June 30, 2017 was less than $0.1 million . The fair value of stock options vested during the six months ended June 30, 2018 and June 30, 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 six months ended June 30, 2018 : Shares Weighted-Average Grant Date Fair Value Non-vested at January 1, 2018 257,492 $ 34.75 Granted 98,448 60.29 Forfeited (17,748 ) 37.59 Vested (18,618 ) 35.03 Unearned performance-based awards (640 ) 51.15 Non-vested at June 30, 2018 318,934 $ 42.41 We recorded total stock-based compensation expense of $1.8 million for each of the three months ended June 30, 2018 and June 30, 2017 , and $3.4 million and $3.2 million for the six months ended June 30, 2018 and June 30, 2017, respectively. As of June 30, 2018 , there was $14.8 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 2.2 years.

Short Term Investments

Short Term Investments	6 Months Ended
	Jun. 30, 2018
Investments Schedule [Abstract]
Short Term Investments	SHORT TERM INVESTMENTS Short-term investments at June 30, 2018 consisted of U.S Treasury Bills totaling $11.0 million that matured on 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 June 30, 2018 was 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 June 30, 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 13 – Fair Value of Financial Instruments.

Accounts Receivable

Accounts Receivable	6 Months Ended
	Jun. 30, 2018
Receivables [Abstract]
Accounts Receivable	ACCOUNTS RECEIVABLE Accounts receivable consist of the following: As of As of Accounts receivable $ 73,708 $ 74,062 Allowance for doubtful accounts (2,067 ) (1,957 ) Total $ 71,641 $ 72,105

Inventories

Inventories	6 Months Ended
	Jun. 30, 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 four principal categories of inventory: 1) raw materials; 2) manufactured product to be sold; 3) sales demonstration inventory - completed product used to support our sales force and demonstrations; and 4) 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 $ 37,348 $ 36,328 Finished goods 23,001 17,458 Inventories, net $ 60,349 $ 53,786 Service and sales demonstration inventory, net $ 38,346 $ 39,614

Earnings (Loss) Per Share

Earnings (Loss) Per Share	6 Months Ended
	Jun. 30, 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 and six months ended June 30, 2017 , the calculation of diluted net loss per share excludes our potential common stock, as the effect would be anti-dilutive. For the three and six months ended June 30, 2018, there were approximately 565,398 shares issuable upon the exercise of options that were excluded from the dilutive calculations, as they were anti-dilutive. For the three and six months ended June 30, 2017, there were approximately 1,265,885 and 1,221,308 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 (loss) per share (“EPS”) is presented below: Three Months Ended June 30, 2018 June 30, 2017 Shares Per-Share Amount Shares Per-Share Amount Basic earnings (loss) per share 16,966,928 $ 0.07 16,700,718 $ (0.22 ) Effect of dilutive securities 297,714 — — — Diluted earnings (loss) per share 17,264,642 $ 0.07 16,700,718 $ (0.22 ) Six Months Ended June 30, 2018 June 30, 2017 Shares Per-Share Amount Shares Per-Share Amount Basic earnings (loss) per share 16,902,390 $ 0.10 16,692,500 $ (0.30 ) Effect of dilutive securities 307,664 — — — Diluted earnings (loss) per share 17,210,054 $ 0.10 16,692,500 $ (0.30 )

Accrued Liabilities

Accrued Liabilities	6 Months Ended
	Jun. 30, 2018
Payables and Accruals [Abstract]
Accrued Liabilities	ACCRUED LIABILITIES Accrued liabilities consist of the following: As of As of Accrued compensation and benefits $ 14,763 $ 16,144 Accrued warranties 2,562 2,628 Professional and legal fees 1,837 1,541 Taxes other than income 2,858 3,787 Other accrued liabilities 2,930 3,262 $ 24,950 $ 27,362 Activity related to accrued warranties was as follows: Six Months Ended June 30, 2018 June 30, 2017 Balance, beginning of period $ 2,628 $ 2,594 Provision for warranty expense 1,980 1,824 Fulfillment of warranty obligations (2,046 ) (1,848 ) Balance, end of period $ 2,562 $ 2,570

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 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 June 30, 2018 Level 1 Level 2 Level 3 Assets: Short-term investments (1) $ 10,998 $ — $ — Total $ 10,998 $ — $ — 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 six months ended June 30, 2018 . The change in the fair value of the contingent consideration from December 31, 2017 to June 30, 2018 is primarily related to our acquisition of Laser Control Systems Limited on March 9, 2018. See Note 17 – Business Combinations for further information regarding that acquisition.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	INCOME TAXES For the three months ended June 30, 2018 , we recorded income tax expense of $0.3 million compared with an income tax benefit of $0.9 million for the three months ended June 30, 2017 . Our effective tax rate was 19.9% for the three months ended June 30, 2018 compared with (20.2)% in the prior year period. The change in our income tax expense (benefit) was primarily due to pretax income during the three months ended June 30, 2018 compared to a pretax loss during the three months ended June 30, 2017 . For the six months ended June 30, 2018 , we recorded income tax expense of $0.4 million compared with an income tax benefit of $1.4 million for the six months ended June 30, 2017 . Our effective tax rate was 20.5% for the six months ended June 30, 2018 compared with (21.5)% in the prior year period. The change in our income tax expense (benefit) was primarily due to pretax income during the six months ended June 30, 2018 compared to a pretax loss during the six months ended June 30, 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 June 30, 2018 when compared to December 31, 2017 . Additional work is necessary to finalize our 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 June 30, 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 but allows the possibility of using foreign tax credits to offset the tax liability, subject to some limitations. For the three and six months ended June 30, 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 $1.6 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 $1.6 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.

Variable Interest Entity

Variable Interest Entity	6 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
VARIABLE INTEREST ENTITIES	VARIABLE INTEREST ENTITY A variable interest entity (“VIE”) is an entity that has one of three characteristics: (1) it is controlled by someone other than its shareowners or partners, (2) its shareowners or partners are not economically exposed to the entity's earnings (for example, they are protected against losses), or (3) it lacks sufficient equity to permit the entity to finance its activities without additional subordinated financial support from other parties. On April 27, 2018, we invested $1.8 million in Present4D GmbH (“Present4D”), a software solutions provider for professional virtual reality presentations and training environments, in the form of an equity capital contribution. This contribution represents a minority investment in Present4D. As of our investment date, Present4D was thinly capitalized and lacked the sufficient equity to finance its activities without additional subordinated financial support and is classified as a VIE. We do not have power over decisions that significantly affect Present4D’s economic performance and do not represent its primary beneficiary. After April 27, 2020, Present4D may request additional equity financing of up to $1.8 million from us in exchange for additional share capital. Our investment in this unconsolidated VIE at June 30, 2018 was $1.8 million and included in Other long-term assets in our condensed consolidated balance sheet as of June 30, 2018. We had no VIE investments as of December 31, 2017.

Segment Reporting

Segment Reporting	6 Months Ended
	Jun. 30, 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 segment. 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 and six months ended June 30, 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 and six months ended June 30, 2018 and 2017: 3D Factory Construction BIM Emerging Verticals Total Three Months Ended June 30, 2018 Total sales $ 64,970 $ 23,567 $ 9,707 $ 98,244 Segment profit $ 21,042 $ 5,865 $ 700 $ 27,607 General and administrative 11,320 Depreciation and amortization 4,377 Research and development 9,983 Income from operations $ 1,927 3D Factory Construction BIM Emerging Verticals Total Three Months Ended June 30, 2017 Total sales $ 57,363 $ 18,859 $ 6,460 $ 82,682 Segment profit (loss) $ 16,651 $ 4,314 $ (227 ) $ 20,738 General and administrative 11,877 Depreciation and amortization 3,989 Research and development 9,045 Loss from operations $ (4,173 ) 3D Factory Construction BIM Emerging Verticals Total Six Months Ended June 30, 2018 Total sales $ 126,328 $ 46,249 $ 18,501 $ 191,078 Segment profit $ 39,414 $ 12,316 $ 1,392 $ 53,122 General and administrative 22,393 Depreciation and amortization 8,720 Research and development 19,389 Income from operations $ 2,620 3D Factory Construction BIM Emerging Verticals Total Six Months Ended June 30, 2017 Total sales $ 114,584 $ 37,800 $ 11,860 $ 164,244 Segment profit (loss) $ 33,319 $ 8,392 $ (96 ) $ 41,615 General and administrative 22,576 Depreciation and amortization 7,707 Research and development 17,511 Loss from operations $ (6,179 )

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 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 remaining obligations under these leases are approximately $2.6 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 June 30, 2018 , we had approximately $69.0 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 June 30, 2018, we also had $7.3 million in long-term commitments for purchases to be delivered after 12 months. Legal Proceedings — We are not involved in any legal proceedings, including routine litigation arising in the normal course of business, that we believe will have a material adverse effect on our business, financial condition or results of operations.

Business Combinations

Business Combinations	6 Months Ended
	Jun. 30, 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 and six months ended June 30, 2018 and June 30, 2017. 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. 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 and six months ended June 30, 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 . 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 and six months ended June 30, 2018 . The acquisitions of Nutfield, Laser Control Systems Limited, and Photocore AG constitute business combinations as defined by ASC Topic 805. Accordingly, the assets acquired and liabilities assumed were recorded at their fair values on the date of acquisition. The purchase price allocations marked as “Preliminary” below are based on the information that was available to make estimates of the fair value and may change as further information becomes available and additional analyses are completed. While we believe such information provides a reasonable basis for estimating the fair values, we may obtain more information and evidence during the measurement period that result in changes to the estimated fair value amounts. The measurement period ends on the earlier of one year after the acquisition date or the date we received the information about the facts and circumstances that existed at the acquisition date. Subsequent adjustments, if necessary, will be recognized during the period in which the amounts are determined. These refinements include: (1) changes in the estimated fair value of certain intangible assets acquired; and (2) changes in deferred tax assets and liabilities related to the fair value estimates. The purchase price allocation marked as “Final” below represents our final determination of the fair value of the assets acquired and liabilities assumed for such acquisition. Following is a summary of our allocations of the purchase price to the fair values of the assets acquired and liabilities assumed as of the date of each acquisition: Nutfield (Final) Laser Control Systems Limited (Preliminary) Photocore AG (Preliminary) Accounts receivable $ 160 $ — $ — Inventory 539 — — Other assets 96 — — Deferred income tax assets 131 — — Intangible assets 2,329 1,400 1,435 Goodwill (1) 2,357 928 1,010 Accounts payable and accrued liabilities (12 ) — — Other liabilities (2) (104 ) (579 ) — Total purchase price, net of cash acquired $ 5,496 $ 1,749 $ 2,445 (1) A portion of the goodwill is expected to be tax deductible for Nutfield and Photocore AG. (2) For Laser Control Systems Limited, this total consists primarily of the fair value of the projected contingent consideration. Following are the details of the purchase price allocated to the intangible assets acquired for the acquisitions noted above: Nutfield (Final) Laser Control Systems Limited (Preliminary) Photocore AG (Preliminary) Amount Weighted Average Life (Years) Amount Weighted Average Life (Years) Amount Weighted Average Life (Years) Trade name $ 29 1 $ — 0 $ — 0 Brand — 0 26 1 22 1 Non-competition agreement 144 5 29 3 9 3 Technology 1,970 10 1,319 7 1,343 7 Customer relationship 95 10 26 10 61 10 Favorable in-place lease 91 12 — 0 — 0 Fair value of intangible assets acquired $ 2,329 10 $ 1,400 7 $ 1,435 7 The goodwill for the Nutfield acquisition has been allocated to the 3D Factory reporting segment. The goodwill for Laser Control Systems Limited will be allocated to the 3D Factory reporting segment. The goodwill for Photocore AG will be allocated to the Construction BIM reporting segment. 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.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2018
Subsequent Events [Abstract]
Subsequent Events	SUBSEQUENT EVENTS On July 6, 2018, we acquired all of the outstanding shares of Lanmark Controls, Inc., a galvanometer-based laser marking control board and software technology business located in Acton, Massachusetts, for a purchase price of $6.0 million . An additional $1.0 million in contingent consideration may be earned by the former owners if certain milestones are met. This acquisition supports our long-term strategy to improve and expand upon our new galvanometer-based product lines with innovative technology. On July 13, 2018, we acquired all of the outstanding capital of Opto-Tech SRL, a business located in Brescia, Italy, which develops, designs, manufactures, markets and sells 3D scanners and related software for dental, industrial, design and research applications, for a total purchase price of $16.9 million . An additional $4.7 million in contingent consideration may be earned by the former owners if certain milestones are met. This acquisition supports our long-term strategy to improve our existing product lines in our Product Design vertical with innovative technology. Because these acquisitions occurred subsequent to the end of the second quarter of 2018, the initial accounting for these business combinations is incomplete as of the filing date of this Quarterly Report on Form 10-Q, and certain disclosures, including the preliminary allocations of purchase price, have been omitted from these condensed consolidated financial statements. We will include the required disclosures regarding these acquisitions in our Quarterly Report on Form 10-Q as of, and for the period ending, September 30, 2018. We are currently evaluating the impact of these acquisitions on our reportable segments. The operating results of these acquired businesses will be included in our condensed consolidated financial statements as of and after their respective dates of acquisition.

Principles of Consolidation (Po

Principles of Consolidation (Policies)	6 Months Ended
	Jun. 30, 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	In January 2017, the FASB issued ASU No. 2017-04, Intangibles - 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. 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 June 30, 2018, we recognized $7.2 million of service revenue that was deferred on our consolidated balance sheet as of December 31, 2017. During the six months ended June 30, 2018, we recognized $16.2 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 June 30, 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 six months ended June 30, 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 approximately $0.1 million as of June 30, 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.
Inventory Policy	Inventories are stated at the lower of cost or net realizable value using the first-in first-out (FIFO) method. We have four principal categories of inventory: 1) raw materials; 2) manufactured product to be sold; 3) sales demonstration inventory - completed product used to support our sales force and demonstrations; and 4) 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 Acc26

Impact of Recently Issued Accounting Pronouncements (Tables)	6 Months Ended
	Jun. 30, 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 June 30, 2018 2017 Product sales Product transferred to customers at a point in time $ 75,720 $ 62,533 Product transferred to customers over time — — $ 75,720 $ 62,533 For the Six Months Ended June 30, 2018 2017 Product sales Product transferred to customers at a point in time $ 146,301 $ 124,913 Product transferred to customers over time — — $ 146,301 $ 124,913 For the Three Months Ended June 30, 2018 2017 Service sales Service transferred to customers at a point in time $ 9,907 $ 8,530 Service transferred to customers over time 12,617 11,619 $ 22,524 $ 20,149 For the Six Months Ended June 30, 2018 2017 Service sales Service transferred to customers at a point in time $ 19,359 $ 17,172 Service transferred to customers over time 25,418 22,159 $ 44,777 $ 39,331 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 June 30, 2018 2017 Net sales to external customers United States $ 40,278 $ 32,143 EMEA (1) 29,601 24,320 APAC (1) 24,944 22,882 Other Americas (1) 3,421 3,337 $ 98,244 $ 82,682 For the Six Months Ended June 30, 2018 2017 Net sales to external customers United States $ 77,580 $ 63,913 EMEA (1) 59,281 49,280 APAC (1) 47,533 44,142 Other Americas (1) 6,684 6,909 $ 191,078 $ 164,244 (1) Regions represent Europe, the Middle East, and Africa (EMEA); Asia-Pacific (APAC); and Canada, Mexico, and Brazil (Other Americas)

Revenues (Tables)

Revenues (Tables)	6 Months Ended
	Jun. 30, 2018
Revenue from Contract with Customer [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 June 30, 2018 2017 Product sales Product transferred to customers at a point in time $ 75,720 $ 62,533 Product transferred to customers over time — — $ 75,720 $ 62,533 For the Six Months Ended June 30, 2018 2017 Product sales Product transferred to customers at a point in time $ 146,301 $ 124,913 Product transferred to customers over time — — $ 146,301 $ 124,913 For the Three Months Ended June 30, 2018 2017 Service sales Service transferred to customers at a point in time $ 9,907 $ 8,530 Service transferred to customers over time 12,617 11,619 $ 22,524 $ 20,149 For the Six Months Ended June 30, 2018 2017 Service sales Service transferred to customers at a point in time $ 19,359 $ 17,172 Service transferred to customers over time 25,418 22,159 $ 44,777 $ 39,331 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 June 30, 2018 2017 Net sales to external customers United States $ 40,278 $ 32,143 EMEA (1) 29,601 24,320 APAC (1) 24,944 22,882 Other Americas (1) 3,421 3,337 $ 98,244 $ 82,682 For the Six Months Ended June 30, 2018 2017 Net sales to external customers United States $ 77,580 $ 63,913 EMEA (1) 59,281 49,280 APAC (1) 47,533 44,142 Other Americas (1) 6,684 6,909 $ 191,078 $ 164,244 (1) Regions represent Europe, the Middle East, and Africa (EMEA); Asia-Pacific (APAC); and Canada, Mexico, and Brazil (Other Americas)

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 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 six months ended June 30, 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 (60,448 ) 50.21 Exercised (162,594 ) 43.41 Unearned performance-based options (17,160 ) 59.97 Outstanding at June 30, 2018 1,091,000 $ 48.19 4.4 $ 9,585 Options exercisable at June 30, 2018 918,462 $ 42.24 2.4 $ 4,689
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 six months ended June 30, 2018 : Shares Weighted-Average Grant Date Fair Value Non-vested at January 1, 2018 257,492 $ 34.75 Granted 98,448 60.29 Forfeited (17,748 ) 37.59 Vested (18,618 ) 35.03 Unearned performance-based awards (640 ) 51.15 Non-vested at June 30, 2018 318,934 $ 42.41
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule of Valuation Assumptions	For stock options granted during the six months ended June 30, 2018 and June 30, 2017 valued using the Black-Scholes option valuation model, we used the following assumptions: Six Months Ended June 30, June 30, Risk-free interest rate 2.65 % 1.88% - 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)	6 Months Ended
	Jun. 30, 2018
Receivables [Abstract]
Schedule of Accounts Receivable	Accounts receivable consist of the following: As of As of Accounts receivable $ 73,708 $ 74,062 Allowance for doubtful accounts (2,067 ) (1,957 ) Total $ 71,641 $ 72,105

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2018
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventories consist of the following: As of As of Raw materials $ 37,348 $ 36,328 Finished goods 23,001 17,458 Inventories, net $ 60,349 $ 53,786 Service and sales demonstration inventory, net $ 38,346 $ 39,614

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 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 (loss) per share (“EPS”) is presented below: Three Months Ended June 30, 2018 June 30, 2017 Shares Per-Share Amount Shares Per-Share Amount Basic earnings (loss) per share 16,966,928 $ 0.07 16,700,718 $ (0.22 ) Effect of dilutive securities 297,714 — — — Diluted earnings (loss) per share 17,264,642 $ 0.07 16,700,718 $ (0.22 ) Six Months Ended June 30, 2018 June 30, 2017 Shares Per-Share Amount Shares Per-Share Amount Basic earnings (loss) per share 16,902,390 $ 0.10 16,692,500 $ (0.30 ) Effect of dilutive securities 307,664 — — — Diluted earnings (loss) per share 17,210,054 $ 0.10 16,692,500 $ (0.30 )

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	6 Months Ended
	Jun. 30, 2018
Payables and Accruals [Abstract]
Schedule of Accrued Liabilities	Accrued liabilities consist of the following: As of As of Accrued compensation and benefits $ 14,763 $ 16,144 Accrued warranties 2,562 2,628 Professional and legal fees 1,837 1,541 Taxes other than income 2,858 3,787 Other accrued liabilities 2,930 3,262 $ 24,950 $ 27,362
Schedule of Activity Related to Accrued Warranties	Activity related to accrued warranties was as follows: Six Months Ended June 30, 2018 June 30, 2017 Balance, beginning of period $ 2,628 $ 2,594 Provision for warranty expense 1,980 1,824 Fulfillment of warranty obligations (2,046 ) (1,848 ) Balance, end of period $ 2,562 $ 2,570

Fair Value of Financial Instr33

Fair Value of Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 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 June 30, 2018 Level 1 Level 2 Level 3 Assets: Short-term investments (1) $ 10,998 $ — $ — Total $ 10,998 $ — $ — 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 six months ended June 30, 2018 . The change in the fair value of the contingent consideration from December 31, 2017 to June 30, 2018 is primarily related to our acquisition of Laser Control Systems Limited on March 9, 2018. See Note 17 – Business Combinations for further information regarding that acquisition.

Segment Reporting (Tables)

Segment Reporting (Tables)	6 Months Ended
	Jun. 30, 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 and six months ended June 30, 2018 and 2017: 3D Factory Construction BIM Emerging Verticals Total Three Months Ended June 30, 2018 Total sales $ 64,970 $ 23,567 $ 9,707 $ 98,244 Segment profit $ 21,042 $ 5,865 $ 700 $ 27,607 General and administrative 11,320 Depreciation and amortization 4,377 Research and development 9,983 Income from operations $ 1,927 3D Factory Construction BIM Emerging Verticals Total Three Months Ended June 30, 2017 Total sales $ 57,363 $ 18,859 $ 6,460 $ 82,682 Segment profit (loss) $ 16,651 $ 4,314 $ (227 ) $ 20,738 General and administrative 11,877 Depreciation and amortization 3,989 Research and development 9,045 Loss from operations $ (4,173 ) 3D Factory Construction BIM Emerging Verticals Total Six Months Ended June 30, 2018 Total sales $ 126,328 $ 46,249 $ 18,501 $ 191,078 Segment profit $ 39,414 $ 12,316 $ 1,392 $ 53,122 General and administrative 22,393 Depreciation and amortization 8,720 Research and development 19,389 Income from operations $ 2,620 3D Factory Construction BIM Emerging Verticals Total Six Months Ended June 30, 2017 Total sales $ 114,584 $ 37,800 $ 11,860 $ 164,244 Segment profit (loss) $ 33,319 $ 8,392 $ (96 ) $ 41,615 General and administrative 22,576 Depreciation and amortization 7,707 Research and development 17,511 Loss from operations $ (6,179 )

Business Combinations (Tables)

Business Combinations (Tables)	6 Months Ended
	Jun. 30, 2018
Business Combinations [Abstract]
Schedule of Fair Values of Assets Acquired and Liabilities Assumed for Acquisitions	Following is a summary of our allocations of the purchase price to the fair values of the assets acquired and liabilities assumed as of the date of each acquisition: Nutfield (Final) Laser Control Systems Limited (Preliminary) Photocore AG (Preliminary) Accounts receivable $ 160 $ — $ — Inventory 539 — — Other assets 96 — — Deferred income tax assets 131 — — Intangible assets 2,329 1,400 1,435 Goodwill (1) 2,357 928 1,010 Accounts payable and accrued liabilities (12 ) — — Other liabilities (2) (104 ) (579 ) — Total purchase price, net of cash acquired $ 5,496 $ 1,749 $ 2,445 (1) A portion of the goodwill is expected to be tax deductible for Nutfield and Photocore AG. (2) For Laser Control Systems Limited, this total consists primarily of the fair value of the projected contingent consideration.
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 acquisitions noted above: Nutfield (Final) Laser Control Systems Limited (Preliminary) Photocore AG (Preliminary) Amount Weighted Average Life (Years) Amount Weighted Average Life (Years) Amount Weighted Average Life (Years) Trade name $ 29 1 $ — 0 $ — 0 Brand — 0 26 1 22 1 Non-competition agreement 144 5 29 3 9 3 Technology 1,970 10 1,319 7 1,343 7 Customer relationship 95 10 26 10 61 10 Favorable in-place lease 91 12 — 0 — 0 Fair value of intangible assets acquired $ 2,329 10 $ 1,400 7 $ 1,435 7

Description of Business (Detail

Description of Business (Details)	6 Months Ended
	Jun. 30, 2018segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments	3

Impact of Recently Issued Acc37

Impact of Recently Issued Accounting Pronouncements - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Recognized service revenue	$ 7,200	$ 16,200
Retained earnings	172,649	172,649		$ 168,624
Deferred cost asset	2,500	2,500
Allowance for sales returns (less than)	100	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	1,800
Other long-term assets
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred cost asset	$ 700	$ 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

Impact of Recently Issued Acc38

Impact of Recently Issued Accounting Pronouncements - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Sales	$ 98,244	$ 82,682	$ 191,078	$ 164,244
United States
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Sales	40,278	32,143	77,580	63,913
EMEA
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Sales	29,601	24,320	59,281	49,280
APAC
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Sales	24,944	22,882	47,533	44,142
Other Americas
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Sales	3,421	3,337	6,684	6,909
Product sales
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Sales	75,720	62,533	146,301	124,913
Product sales | Product transferred to customers at a point in time
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Sales	75,720	62,533	146,301	124,913
Product sales | Product transferred to customers over time
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Sales	0	0	0	0
Service sales
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Sales	22,524	20,149	44,777	39,331
Service sales | Product transferred to customers at a point in time
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Sales	9,907	8,530	19,359	17,172
Service sales | Product transferred to customers over time
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Sales	$ 12,617	$ 11,619	$ 25,418	$ 22,159

Revenues - Disaggregation of Re

Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Sales	$ 98,244	$ 82,682	$ 191,078	$ 164,244
United States
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Sales	40,278	32,143	77,580	63,913
EMEA
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Sales	29,601	24,320	59,281	49,280
APAC
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Sales	24,944	22,882	47,533	44,142
Other Americas
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Sales	3,421	3,337	6,684	6,909
Service sales
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Sales	22,524	20,149	44,777	39,331
Service sales | Product transferred to customers over time
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Sales	12,617	11,619	25,418	22,159
Service sales | Product transferred to customers at a point in time
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Sales	9,907	8,530	19,359	17,172
Product sales
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Sales	75,720	62,533	146,301	124,913
Product sales | Product transferred to customers over time
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Sales	0	0	0	0
Product sales | Product transferred to customers at a point in time
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Sales	$ 75,720	$ 62,533	$ 146,301	$ 124,913

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details)	1 Months Ended		3 Months Ended		6 Months Ended
	May 31, 2018shares	Mar. 31, 2018shares	Jun. 30, 2018USD ($)plan	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)plan$ / sharesshares	Jun. 30, 2017USD ($)$ / shares
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 | $			$ 1,800,000	$ 1,800,000	3,400,000	3,200,000
Unrecognized stock-based compensation expense | $			14,800,000		$ 14,800,000
Weighted average, expected recognition period					2 years 2 months
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)					18,618
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 | $					$ 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%
Two Thousand Fourteen Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Additional shares authorized (in shares)	1,000,000
Shares authorized (in shares)	2,974,543
2004 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized (in shares)	891,960
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
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of stock options vested | $				100,000
Maximum | Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total intrinsic value of stock options exercised | $			$ 100,000	$ 100,000

Stock-Based Compensation - Assu

Stock-Based Compensation - Assumptions Used to Estimate The Fair Value of Time-Based Stock Options (Details) - Employee Stock Option	6 Months Ended
	Jun. 30, 2018	Jun. 30, 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%
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%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Risk-free Interest rate (as a percentage)		1.88%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Risk-free Interest rate (as a percentage)		2.02%

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule of Stock Option Activity and Weighted Average Exercise Prices (Details) - Employee Stock Option $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)$ / sharesshares
Options
Outstanding at January 1, 2018 (in shares) | shares	1,156,763
Granted (in shares) | shares	174,439
Forfeited or expired (in shares) | shares	(60,448)
Exercised (in shares) | shares	(162,594)
Unearned performance-based options (in shares) | shares	(17,160)
Outstanding at June 30, 2018 (in shares) | shares	1,091,000
Options exercisable at June 30, 2018 (in shares) | shares	918,462
Weighted- Average Exercise Price
Outstanding at January 1, 2018 (in dollars per share) | $ / shares	$ 45.93
Granted (in dollars per share) | $ / shares	61.30
Forfeited or expired (in dollars per share) | $ / shares	50.21
Exercised (in dollars per share) | $ / shares	43.41
Unearned performance-based options (in dollars per share) | $ / shares	59.97
Outstanding at June 30, 2018 (in dollars per share) | $ / shares	48.19
Options exercisable at June 30, 2018 (in dollars per share) | $ / shares	$ 42.24
Weighted-Average Remaining Contractual Term (Years)
Weighted-average remaining contractual term, outstanding at June 30, 2018	4 years 5 months
Weighted-average remaining contractual term, options exercisable at June 30, 2018	2 years 5 months
Aggregate Intrinsic Value as of June 30, 2018
Aggregate intrinsic value outstanding at June 30, 2018 | $	$ 9,585
Aggregate intrinsic value of options exercisable at June 30, 2018 | $	$ 4,689

Stock-Based Compensation - Sc43

Stock-Based Compensation - Schedule of Restricted Stock Unit Activity and Weighted Average Grant Date Fair Value (Details) - Restricted Stock Units	6 Months Ended
	Jun. 30, 2018$ / sharesshares
Shares
Non-vested at January 1, 2018 (in shares) | shares	257,492
Granted (in shares) | shares	98,448
Forfeited (in shares) | shares	(17,748)
Vested (in shares) | shares	(18,618)
Unearned performance-based awards (in shares) | shares	(640)
Non-vested at June 30, 2018 (in shares) | shares	318,934
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	60.29
Forfeited (in dollars per share) | $ / shares	37.59
Vested (in dollars per share) | $ / shares	35.03
Unearned performance-based awards (in dollars per share) | $ / shares	51.15
Non-vested at June 30, 2018 (in dollars per share) | $ / shares	$ 42.41

Short Term Investments - Additi

Short Term Investments - Additional Information (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Securities Purchased Under Agreements to Resell and Other Short Term Investment Securities [Line Items]
Short-term investments	$ 10,998	$ 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	Jun. 30, 2018	Dec. 31, 2017
Receivables [Abstract]
Accounts receivable	$ 73,708	$ 74,062
Allowance for doubtful accounts	(2,067)	(1,957)
Total	$ 71,641	$ 72,105

Inventories - Additional Inform

Inventories - Additional Information (Details)	6 Months Ended
	Jun. 30, 2018
Property, Plant and Equipment [Line Items]
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	Jun. 30, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Raw materials	$ 37,348	$ 36,328
Finished goods	23,001	17,458
Inventories, net	60,349	53,786
Service and sales demonstration inventory, net	$ 38,346	$ 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		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Earnings Per Share [Abstract]
Antidilutive securities (in shares)	565,398	1,265,885	565,398	1,221,308
Basic earnings (loss) per share (in shares)	16,966,928	16,700,718	16,902,390	16,692,500
Effect of dilutive securities (in shares)	297,714	0	307,664	0
Diluted earnings (loss) (in shares)	17,264,642	16,700,718	17,210,054	16,692,500
Basic earnings (loss) (in dollars per share)	$ 0.07	$ (0.22)	$ 0.10	$ (0.30)
Effect of dilutive securities (in dollars per share)	0	0	0	0
Diluted earnings (loss) (in dollars per share)	$ 0.07	$ (0.22)	$ 0.10	$ (0.30)

Accrued Liabilities - Summary (

Accrued Liabilities - Summary (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Payables and Accruals [Abstract]
Accrued compensation and benefits	$ 14,763	$ 16,144
Accrued warranties	2,562	2,628	$ 2,570	$ 2,594
Professional and legal fees	1,837	1,541
Taxes other than income	2,858	3,787
Other accrued liabilities	2,930	3,262
Accrued liabilities	$ 24,950	$ 27,362

Accrued Liabilities - Activity

Accrued Liabilities - Activity Related to Accrued Warranties (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 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	1,980	1,824
Fulfillment of warranty obligations	(2,046)	(1,848)
Balance, end of period	$ 2,562	$ 2,570

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended		12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 300		$ (918)	$ 427	$ (1,389)
Effective tax rate	19.90%		(20.20%)	20.50%	(21.50%)
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						$ 1,600
Foreign tax credits - income tax benefit						$ 1,600

Fair Value of Financial Instr52

Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Level 1
Assets:
Short-term investments	$ 10,998	$ 10,997
Total	10,998	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 Instr53

Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value on a Recurring Basis - Footnotes (Details) $ in Millions	6 Months Ended
	Jun. 30, 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

Variable Interest Entity (Detai

Variable Interest Entity (Details) - USD ($) $ in Thousands	Apr. 27, 2018	Jun. 30, 2018	Jun. 30, 2017
Variable Interest Entity [Line Items]
Equity investments and advances to affiliates		$ 1,786	$ 0
Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Equity investments and advances to affiliates	$ 1,800
Potential additional investment (up to)		1,800
Investment in VIE		$ 1,800

Segment Reporting - Additional

Segment Reporting - Additional Information (Details)	6 Months Ended
	Jun. 30, 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		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Segment Reporting Information [Line Items]
Total sales	$ 98,244	$ 82,682	$ 191,078	$ 164,244
Segment profit	57,691	46,760	111,477	90,509
General and administrative	11,320	11,877	22,393	22,576
Depreciation and amortization	4,377	3,989	8,720	7,707
Research and development	9,983	9,045	19,389	17,511
Income (loss) from operations	1,927	(4,173)	2,620	(6,179)
3D Factory
Segment Reporting Information [Line Items]
Total sales	64,970	57,363	126,328	114,584
Construction BIM
Segment Reporting Information [Line Items]
Total sales	23,567	18,859	46,249	37,800
Emerging Verticals
Segment Reporting Information [Line Items]
Total sales	9,707	6,460	18,501	11,860
Operating Segments
Segment Reporting Information [Line Items]
Segment profit	27,607	20,738	53,122	41,615
Operating Segments | 3D Factory
Segment Reporting Information [Line Items]
Segment profit	21,042	16,651	39,414	33,319
Operating Segments | Construction BIM
Segment Reporting Information [Line Items]
Segment profit	5,865	4,314	12,316	8,392
Operating Segments | Emerging Verticals
Segment Reporting Information [Line Items]
Segment profit	$ 700	$ (227)	$ 1,392	$ (96)

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) $ in Millions	6 Months Ended
	Jun. 30, 2018USD ($)
Commitments and Contingencies [Line Items]
Purchase commitment, due in next twelve months	$ 69
Purchase commitment due after twelve months	$ 7.3
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	$ 2.6

Business Combinations - Additio

Business Combinations - Additional Information (Details) - USD ($) $ in Millions	Mar. 16, 2018	Mar. 09, 2018	Apr. 30, 2017
Nutfield (Final)
Business Acquisition [Line Items]
Purchase price, net of cash acquired			$ 5.5
Laser Control Systems Limited
Business Acquisition [Line Items]
Potential contingent consideration		$ 0.7
Purchase price, including contingent consideration		$ 1.7
Photocore AG
Business Acquisition [Line Items]
Purchase price, net of cash acquired	$ 2.4

Business Combinations - Purchas

Business Combinations - Purchase Price Allocation (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Mar. 16, 2018	Mar. 09, 2018	Dec. 31, 2017	Apr. 30, 2017
Business Acquisition [Line Items]
Goodwill	$ 53,584			$ 52,750
Nutfield (Final)
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
Laser Control Systems Limited
Business Acquisition [Line Items]
Accounts receivable			$ 0
Inventory			0
Other assets			0
Deferred income tax assets			0
Intangible assets			1,400
Goodwill			928
Accounts payable and accrued liabilities			0
Other liabilities			(579)
Total purchase price, net of cash acquired			$ 1,749
Photocore AG
Business Acquisition [Line Items]
Accounts receivable		$ 0
Inventory		0
Other assets		0
Deferred income tax assets		0
Intangible assets		1,435
Goodwill		1,010
Accounts payable and accrued liabilities		0
Other liabilities		0
Total purchase price, net of cash acquired		$ 2,445

Business Combinations - Summary

Business Combinations - Summary of the Purchase Price Allocated to the Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 16, 2018	Mar. 09, 2018	Apr. 30, 2017
Nutfield (Final)
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired			$ 2,329
Intangible assets acquired, weighted average life (in years)			10 years
Nutfield (Final) | Trade name
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired			$ 29
Intangible assets acquired, weighted average life (in years)			1 year
Nutfield (Final) | Brand
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired			$ 0
Intangible assets acquired, weighted average life (in years)			0 years
Nutfield (Final) | Non-competition agreement
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired			$ 144
Intangible assets acquired, weighted average life (in years)			5 years
Nutfield (Final) | Technology
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired			$ 1,970
Intangible assets acquired, weighted average life (in years)			10 years
Nutfield (Final) | Customer relationship
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired			$ 95
Intangible assets acquired, weighted average life (in years)			10 years
Nutfield (Final) | 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
Laser Control Systems Limited
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired		$ 1,400
Intangible assets acquired, weighted average life (in years)		7 years
Laser Control Systems Limited | Trade name
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired		$ 0
Intangible assets acquired, weighted average life (in years)		0 years
Laser Control Systems Limited | Brand
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired		$ 26
Intangible assets acquired, weighted average life (in years)		1 year
Laser Control Systems Limited | Non-competition agreement
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired		$ 29
Intangible assets acquired, weighted average life (in years)		3 years
Laser Control Systems Limited | Technology
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired		$ 1,319
Intangible assets acquired, weighted average life (in years)		7 years
Laser Control Systems Limited | Customer relationship
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired		$ 26
Intangible assets acquired, weighted average life (in years)		10 years
Laser Control Systems Limited | Favorable in-place lease
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired		$ 0
Intangible assets acquired, weighted average life (in years)		0 years
Photocore AG
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired	$ 1,435
Intangible assets acquired, weighted average life (in years)	7 years
Photocore AG | Trade name
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired	$ 0
Intangible assets acquired, weighted average life (in years)	0 years
Photocore AG | Brand
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired	$ 22
Intangible assets acquired, weighted average life (in years)	1 year
Photocore AG | Non-competition agreement
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired	$ 9
Intangible assets acquired, weighted average life (in years)	3 years
Photocore AG | Technology
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired	$ 1,343
Intangible assets acquired, weighted average life (in years)	7 years
Photocore AG | Customer relationship
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired	$ 61
Intangible assets acquired, weighted average life (in years)	10 years
Photocore AG | Favorable in-place lease
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired	$ 0
Intangible assets acquired, weighted average life (in years)	0 years

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event - USD ($) $ in Millions	Jul. 13, 2018	Jul. 06, 2018
Lanmark Controls
Subsequent Event [Line Items]
Purchase price, including contingent consideration		$ 6
Contingent consideration		$ 1
Opto-Tech SRL
Subsequent Event [Line Items]
Purchase price, including contingent consideration	$ 16.9
Contingent consideration	$ 4.7