FARO (FARO) 10-Q 28 Apr 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 28, 2015	Apr. 23, 2015
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	FALSE
Document Period End Date	28-Mar-15
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Trading Symbol	FARO
Entity Registrant Name	FARO TECHNOLOGIES INC
Entity Central Index Key	917491
Current Fiscal Year End Date	-19
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		17,380,475

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Mar. 28, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Current assets:
Cash and cash equivalents	$96,066	$109,289
Short-term investments	64,993	64,995
Accounts receivable, net	62,339	83,959
Inventories, net	66,652	59,334
Deferred income taxes, net	5,860	5,936
Prepaid expenses and other current assets	17,809	17,021
Total current assets	313,719	340,534
Property and equipment:
Machinery and equipment	46,067	45,254
Furniture and fixtures	5,984	6,156
Leasehold improvements	19,658	19,676
Property and equipment at cost	71,709	71,086
Less: accumulated depreciation and amortization	-41,608	-41,741
Property and equipment, net	30,101	29,345
Goodwill	25,761	19,205
Intangible assets, net	16,933	9,109
Service inventory	21,494	20,646
Deferred income taxes, net	6,453	6,624
Total assets	414,461	425,463
Current liabilities:
Accounts payable	11,196	15,437
Accrued liabilities	19,771	26,127
Current portion of unearned service revenues	23,040	23,572
Customer deposits	1,556	2,046
Total current liabilities	55,563	67,182
Unearned service revenues - less current portion	13,201	13,799
Deferred income tax liability	2,025
Other long-term liabilities	2,423	628
Total liabilities	73,212	81,609
Commitments and contingencies - See Note 16
Shareholders' equity:
Common stock - par value $.001, 50,000,000 shares authorized; 18,057,768 and 17,997,665 issued; 17,377,533 and 17,317,430 outstanding, respectively	18	18
Additional paid-in capital	203,599	200,090
Retained earnings	160,180	159,516
Accumulated other comprehensive loss	-13,473	-6,695
Common stock in treasury, at cost - 680,235 shares	-9,075	-9,075
Total shareholders' equity	341,249	343,854
Total liabilities and shareholders' equity	$414,461	$425,463

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Mar. 28, 2015	Dec. 31, 2014
Common stock, par value	$0.00	$0.00
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	18,057,768	17,997,665
Common stock, shares outstanding	17,377,533	17,317,430
Treasury stock, shares	680,235	680,235

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 28, 2015	Mar. 29, 2014
SALES
Product	$55,044	$59,822
Service	14,895	13,552
Total sales	69,939	73,374
COST OF SALES
Product	22,177	25,153
Service	8,151	8,138
Total cost of sales (exclusive of depreciation and amortization, shown separately below)	30,328	33,291
GROSS PROFIT	39,611	40,083
OPERATING EXPENSES:
Selling and marketing	19,105	17,433
General and administrative	9,801	8,413
Depreciation and amortization	2,493	1,847
Research and development	6,356	5,430
Total operating expenses	37,755	33,123
INCOME FROM OPERATIONS	1,856	6,960
OTHER (INCOME) EXPENSE
Interest income	-19	-17
Other expense, net	1,307	160
INCOME BEFORE INCOME TAX (BENEFIT) EXPENSE	568	6,817
INCOME TAX (BENEFIT) EXPENSE	-96	1,841
NET INCOME	$664	$4,976
NET INCOME PER SHARE - BASIC	$0.04	$0.29
NET INCOME PER SHARE - DILUTED	$0.04	$0.29
Weighted average shares - Basic	17,335,464	17,205,892
Weighted average shares - Diluted	17,511,821	17,364,373

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 28, 2015	Mar. 29, 2014
Net income	$664	$4,976
Currency translation adjustments, net of tax	-6,778	-81
Comprehensive (loss) income	($6,114)	$4,895

CONDENSED_CONSOLIDATED_STATEME2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 28, 2015	Mar. 29, 2014
OPERATING ACTIVITIES:
Net income	$664	$4,976
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	2,493	1,847
Compensation for stock options and restricted stock units	1,198	1,246
Provision for (net recovery of) bad debts	319	-120
Write-down of inventories	1,028	1,661
Deferred income tax expense (benefit)	2,272	-410
Income tax benefit from exercise of stock options	-292	-58
Decrease (increase) in:
Accounts receivable	18,405	1,869
Inventories	-14,221	-4,202
Prepaid expenses and other current assets	-1,562	-539
(Decrease) increase in:
Accounts payable and accrued liabilities	-9,550	-6,103
Income taxes payable	263	-1,619
Customer deposits	-457	-645
Unearned service revenues	211	1,274
Net cash provided by (used in) operating activities	771	-823
INVESTING ACTIVITIES:
Purchases of property and equipment	-2,436	-2,124
Payments for intangible assets	-133	-419
Purchase of businesses acquired	-12,011
Net cash used in investing activities	-14,580	-2,543
FINANCING ACTIVITIES:
Payments on capital leases	-2	-50
Income tax benefit from exercise of stock options	292	58
Proceeds from issuance of stock, net	2,019	1,619
Net cash provided by financing activities	2,309	1,627
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	-1,723	-175
DECREASE IN CASH AND CASH EQUIVALENTS	-13,223	-1,914
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	109,289	124,630
CASH AND CASH EQUIVALENTS, END OF PERIOD	$96,066	$122,716

Description_of_Business

Description of Business	3 Months Ended
	Mar. 28, 2015
Description of Business	NOTE 1 – DESCRIPTION OF BUSINESS
	FARO Technologies, Inc. and its subsidiaries (collectively “FARO,” the “Company,” “us,” “we” or “our”) designs, develops, manufactures, markets and supports software driven, three-dimensional (3-D) measurement, imaging and realization systems. 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 construction and law enforcement applications. Our FaroArm®, FARO Laser ScanArm®, FARO Gage, FARO Laser Tracker™, FARO 3D Imager AMP, and their companion CAM2® software provide for Computer-Aided Design, or CAD, based inspection and/or factory-level statistical process control and high-density surveying. Together, these products integrate the measurement, quality inspection, and reverse engineering functions with CAD software to improve productivity, enhance product quality and decrease rework and scrap in the manufacturing process. Our FARO Focus3D and FARO Freestyle3D laser scanners, and their companion SCENE and FARO forensic software, are utilized for a wide variety of 3-D modeling, documentation and high-density surveying applications, including in two of our key vertical markets – architecture, engineering and construction (AEC) and law enforcement.

Principles_of_Consolidation

Principles of Consolidation	3 Months Ended
	Mar. 28, 2015
Principles of Consolidation	NOTE 2 – 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 income. Foreign currency transaction gains and losses are included in income.

Basis_of_Presentation

Basis of Presentation	3 Months Ended
	Mar. 28, 2015
Basis of Presentation	NOTE 3 – BASIS OF PRESENTATION
	The condensed, consolidated financial statements and notes thereto are unaudited. These statements include all normal recurring accruals and adjustments considered necessary by management for their fair presentation in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. The condensed consolidated results of operations for the three months ended March 28, 2015 are not necessarily indicative of results that may be expected for the year ending December 31, 2015 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, 2014. The accompanying December 31, 2014 consolidated balance sheet has been derived from those audited consolidated financial statements.

Reclassifications

Reclassifications	3 Months Ended
	Mar. 28, 2015
Reclassifications	NOTE 4 – RECLASSIFICATIONS
	Certain prior year amounts have been reclassified in the accompanying condensed consolidated financial statements to conform to current year presentation.

Impact_of_Recently_Issued_Acco

Impact of Recently Issued Accounting Pronouncements	3 Months Ended
	Mar. 28, 2015
Impact of Recently Issued Accounting Pronouncements	NOTE 5 – IMPACT OF RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
	In May 2014, the Financial Accounting Standards Board (“FASB”) issued an amendment to its accounting guidance related to revenue recognition. The amendment was the result of a joint project between the FASB and the International Accounting Standards Board (“IASB”) to clarify the principles for recognizing revenue and to develop common revenue standards for U.S. GAAP and International Financial Reporting Standards. To meet those objectives, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers: Topic 606 (“ASU 2014-09”). ASU 2014-09 is based on the principle that 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. ASU 2014-09 also requires additional disclosure about 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. We will adopt ASU 2014-09 in reporting periods beginning after December 15, 2016. Early adoption is not permitted. We are currently evaluating the impact of adopting this pronouncement on our consolidated financial statements.

StockBased_Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 28, 2015
Stock-Based Compensation	NOTE 6 – 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.
	Annually, we grant restricted stock to our non-employee directors. These director awards are granted the day following our Annual Meeting of Shareholders during the second quarter of each fiscal year and vest the day before our Annual Meeting of Shareholders in the following year. The fair value of these awards is determined by using the current market price of our common stock on the grant date.
	Annually, upon approval by our Compensation Committee, we grant stock options and restricted stock units to certain employees. We also grant stock options to certain new employees throughout the year. These awards are non-performance-based subject only to time-based vesting, and vest in three equal annual installments beginning one year after the grant date. 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.
	In the first quarter of 2015, we granted performance-based stock options and restricted stock units to certain executives. If the applicable performance goals or strategic objectives are achieved, these awards will vest in three equal annual installments beginning one year after the grant date. The fair value of each 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. The related stock-based compensation expense is recognized over the requisite service period, taking into account the probability that we will satisfy the performance goals or strategic objectives.
	In the first quarter of 2015, we also granted performance-based stock options and restricted stock units that include a three-year market condition. The fair value of these awards is determined by using the Monte Carlo Simulation valuation model. We expense these market condition awards over the three-year vesting period regardless of the value the award recipients ultimately receive.
	The Black-Scholes and Monte Carlo Simulation valuation models incorporate assumptions as to stock price volatility, the expected life of options or awards, a risk-free interest rate and dividend yield. The weighted average fair value of the stock options and restricted stock units that were granted during the first quarter of 2015 and valued based on the Monte Carlo Simulation valuation model was $19.97 and $44.45, respectively. The assumptions used to estimate the fair value of the performance-based stock options and restricted stock units under the Monte Carlo Simulation model are as follows:
		Three Months Ended
		March 28, 2015			March 29, 2014
	Risk-free interest rate		0.95% - 1.48	%		—
	Expected dividend yield		0	%		—
	Expected option life		4 years			—
	Expected volatility		44.5	%		—
	Weighted-average expected volatility		44.5	%		—
	For stock options granted during the three months ended March 28, 2015 and March 29, 2014 valued using the Black-Scholes option-pricing model, we used the following assumptions:
		Three Months Ended
		March 28, 2015			March 29, 2014
	Risk-free interest rate		0.99% - 1.06	%		1.1	%
	Expected dividend yield		0	%		0	%
	Expected option life		3 years			4 years
	Expected volatility		42.3	%		42.5	%
	Weighted-average expected volatility		42.3	%		42.5	%
	The weighted-average grant-date fair value of the stock options granted during the three months ended March 28, 2015 and March 29, 2014 and valued using the Black-Scholes option pricing model was $17.48 and $19.79 per option, respectively.
	A summary of stock option activity and weighted-average exercise prices for the three months ended March 28, 2015 follows:
		Options			Weighted-			Weighted-Average		Aggregate Intrinsic
					Average			Remaining		Value as of
					Exercise Price			Contractual Term		March 28, 2015
								(Years)
	Outstanding at January 1, 2015		898,429		$	44.4
	Granted		440,553			59.66
	Forfeited		(37,523	)		55.28
	Exercised		(59,749	)		32.67
	Outstanding at March 28, 2015		1,241,710		$	50.04			5.1	$	11,185
	Options exercisable at March 28, 2015		586,671		$	42.51			3.7	$	9,660
	The total intrinsic value of stock options exercised during the three months ended March 28, 2015 and March 29, 2014 was $1.6 million and $0.9 million, respectively. The fair value of stock options vested during the three months ended March 28, 2015 and March 29, 2014 was $3.8 million and $3.6 million, respectively.
	The following table summarizes the restricted stock and restricted stock unit activity and weighted average grant-date fair values for the three months ended March 28, 2015:
		Shares			Weighted-Average
					Grant Date
					Fair Value
	Non-vested at January 1, 2015		13,955		$	43.57
	Granted		4,109			59.97
	Forfeited		(1,397	)		59.97
	Vested		(469	)		55.83
	Non-vested at March 28, 2015		16,198		$	47.08
	We recorded total stock-based compensation expense of $1,198 and $1,246 for the three months ended March 28, 2015 and March 29, 2014, respectively.
	As of March 28, 2015, there was $11.2 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 2.5 years.

Cash_and_Cash_Equivalents

Cash and Cash Equivalents	3 Months Ended
	Mar. 28, 2015
Cash and Cash Equivalents	NOTE 7 – CASH AND CASH EQUIVALENTS
	We consider cash on hand and all short-term, highly liquid investments that have maturities of three months or less at the time of purchase to be cash and cash equivalents.

Short_Term_Investments

Short Term Investments	3 Months Ended
	Mar. 28, 2015
Short Term Investments	NOTE 8 – SHORT TERM INVESTMENTS
	Short-term investments at March 28, 2015 and December 31, 2014 included U.S. Treasury Bills totaling $65.0 million that mature through June 11, 2015. The weighted-average interest rate on the U.S. Treasury bills is less than one percent. The investments are classified as held-to-maturity and recorded at cost. The fair value of the U.S. Treasury Bills at March 28, 2015 and December 31, 2014 approximated cost.

Accounts_Receivable

Accounts Receivable	3 Months Ended
	Mar. 28, 2015
Accounts Receivable	NOTE 9 – ACCOUNTS RECEIVABLE
	Accounts receivable consist of the following:
		As of			As of
		March 28, 2015			December 31, 2014
	Accounts receivable	$	64,359		$	85,803
	Allowance for doubtful accounts		(2,020	)		(1,844	)
	Total	$	62,339		$	83,959

Inventories

Inventories	3 Months Ended
	Mar. 28, 2015
Inventories	NOTE 10 – INVENTORIES
	Inventories are stated at the lower of cost or net realizable value using the first-in first-out method. Shipping and handling costs are classified as a component of cost of sales in the consolidated statements of operations. Sales demonstration inventory is comprised of measuring, imaging and realization devices utilized by sales representatives to present our products to customers. Management expects these products to remain in sales demonstration inventory for approximately 12 months and are subsequently sold at prices that produce reduced gross margins. Service inventory is comprised of inventory that is not expected to be sold within 12 months, such as training and loaned equipment.
	Inventories consist of the following:
		As of		As of
		March 28, 2015		December 31, 2014
	Raw materials	$	27,428	$	27,058
	Finished goods		18,615		13,075
	Sales demonstration inventory		20,609		19,201
	Inventory, net	$	66,652	$	59,334
	Service inventory	$	21,494	$	20,646

Earnings_Per_Share

Earnings Per Share	3 Months Ended
	Mar. 28, 2015
Earnings Per Share	NOTE 11 – EARNINGS PER SHARE
	Basic earnings per share is computed by dividing net income 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 and director stock options, restricted stock, restricted stock units and performance-based awards. Our potential common stock is excluded from the basic earnings per share calculation and is included in the diluted earnings per share calculation when doing so would not be anti-dilutive. In the first quarter of 2015, we granted performance-based stock options and restricted stock units. These 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. As of March 28, 2015 and March 29, 2014, there were approximately 696,095 and 408,477, respectively, additional shares issuable upon exercise of anti-dilutive options and contingent vesting of performance based awards, which were excluded from the dilutive calculations.
	A reconciliation of the number of common shares used in the calculation of basic and diluted earnings per share (EPS) is presented below:
		Three Months Ended
		March 28, 2015				March 29, 2014
		Shares		Per-Share		Shares		Per-Share
				Amount				Amount
	Basic EPS		17,335,464	$	0.04		17,205,892	$	0.29
	Effect of dilutive securities		176,357		—		158,481		—
	Diluted EPS		17,511,821	$	0.04		17,364,373	$	0.29

Accrued_Liabilities

Accrued Liabilities	3 Months Ended
	Mar. 28, 2015
Accrued Liabilities	NOTE 12 – ACCRUED LIABILITIES
	Accrued liabilities consist of the following:
		As of			As of
		March 28,			December 31,
		2015			2014
	Accrued compensation and benefits	$	12,586		$	17,544
	Accrued warranties		2,202			2,719
	Professional and legal fees		1,250			1,475
	Other accrued liabilities		3,733			4,389
		$	19,771		$	26,127
	Activity related to accrued warranties was as follows:
		Three Months Ended
		March 28, 2015			March 29, 2014
	Balance, beginning of period	$	2,719		$	2,364
	Provision for warranty expense		755			869
	Fulfillment of warranty obligations		(1,272	)		(995	)
	Balance, end of period	$	2,202		$	2,238

Income_Taxes

Income Taxes	3 Months Ended
	Mar. 28, 2015
Income Taxes	NOTE 13 – INCOME TAXES
	Income tax expense decreased by $1.9 million to a tax benefit of $0.1 million for the three months ended March 28, 2015 from an income tax expense of $1.8 million for the three months ended March 29, 2014. This decrease was primarily due to a decrease in pretax income during the first quarter of 2015 and $0.2 million of discrete tax benefit recognized during the first quarter of 2015 related to the tax benefit of the exercise of certain employee stock options. Our effective tax rate decreased to (16.9%) for the three months ended March 28, 2015 from 27.0% in the prior year period. Our effective tax rate continued to be lower than the statutory tax rate in the United States, primarily as a result of favorable tax rates in foreign jurisdictions. However, our effective tax rate could be impacted positively or negatively by geographic changes in the manufacturing or sales of our products and the resulting effect on taxable income in each jurisdiction.

Fair_Value_of_Financial_Instru

Fair Value of Financial Instruments	3 Months Ended
	Mar. 28, 2015
Fair Value of Financial Instruments	NOTE 14 – 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.

Segment_Reporting

Segment Reporting	3 Months Ended
	Mar. 28, 2015
Segment Reporting	NOTE 15 – SEGMENT REPORTING
	We have three reportable segments based upon geographic regions: Americas, Europe/Africa and Asia-Pacific. We include costs related to Corporate in the Americas region. We do not incur research and development expenses in the Asia-Pacific region.
	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 regions. These activities represent more than 99% of consolidated sales. We evaluate performance and allocate resources based upon profitable growth and assets deployed.
	The following table presents information about our reportable segments:
		Three Months Ended
		March 28, 2015			March 29, 2014
	Americas Region
	Net sales to external customers	$	30,398		$	29,594
	Depreciation and amortization		1,522			1,005
	Operating loss		(2,174	)		(78	)
	Long-lived assets		48,095			24,384
	Capital expenditures		1,635			1,129
	Total assets		217,587			203,080
	Europe/Africa Region
	Net sales to external customers	$	22,209		$	23,836
	Depreciation and amortization		611			511
	Operating income		33			2,114
	Long-lived assets		21,791			17,615
	Capital expenditures		596			698
	Total assets		118,559			118,230
	Asia-Pacific Region
	Net sales to external customers	$	17,332		$	19,944
	Depreciation and amortization		360			331
	Operating income		3,997			4,924
	Long-lived assets		2,909			2,552
	Capital expenditures		205			71
	Total assets		78,315			70,953
	Totals
	Net sales to external customers	$	69,939		$	73,374
	Depreciation and amortization		2,493			1,847
	Operating income		1,856			6,960
	Long-lived assets		72,795			44,551
	Capital expenditures		2,436			1,898
	Total assets		414,461			392,263
	The geographical sales information presented above represents sales to customers located in each respective region, whereas the long-lived assets information represents assets held in the respective regions. There were no customers that individually accounted for 10% or more of total revenue in any of the periods presented above.

Commitments_and_Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 28, 2015
Commitments and Contingencies	NOTE 16 – 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 2024. Total obligations under these leases are approximately $6.7 million for 2015.
	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 90 days. As of March 28, 2015, we did not have any long-term commitments for purchases.
	Legal Proceedings — We are not involved in any legal proceedings other than routine litigation arising in the normal course of business, none of which we believe will have a material adverse effect on our business, financial condition or results of operations.

Line_of_Credit

Line of Credit	3 Months Ended
	Mar. 28, 2015
Line of Credit	NOTE 17 – LINE OF CREDIT
	On July 11, 2006, we entered into a loan agreement providing for an available line of credit of $30.0 million, which was most recently amended on March 15, 2012. Loans under the Amended and Restated Loan Agreement, as amended, bear interest at the rate of LIBOR plus a fixed percentage between 1.50% and 2.00% and required us to maintain a minimum cash balance of $25 million and tangible net worth measured at the end of each of our fiscal quarters. The term of the Amended and Restated Loan Agreement, as amended, expired on March 31, 2015. We did not extend the loan agreement.

Business_Combinations

Business Combinations	3 Months Ended
	Mar. 28, 2015
Business Combinations	Note 18 – BUSINESS COMBINATIONS
	In February 2015, we completed the acquisition of ARAS 360 Technologies Inc. (“ARAS”) for a purchase price of $7.7 million, paid with cash on hand, subject to certain additional post-closing adjustments, and up to an additional $4.0 million in contingent consideration that may be earned over a two-year period. ARAS, a privately held business headquartered in Canada, produces a full suite of accident and crime reconstruction software tools that offer advanced graphics, analytical tools, and the ability to work with large point cloud data. The acquisition is expected to complement our portfolio within the law enforcement market.
	In March 2015, we completed the acquisition of kubit GmbH for a purchase price of $4.5 million, paid with cash on hand, subject to certain additional post-closing adjustments, and up to an additional $3.3 million in contingent consideration that may be earned over a three-year period. The acquisition also included substantially all of the assets of kubit GmbH’s U.S. distributor kubit USA, Inc. (collectively “kubit”). Kubit, a privately held business with operating facilities in Germany and the United States, develops software for surveying and as-built documentation. The acquisition is expected to complement our portfolio of software products, specifically in the AEC market.
	The acquisition of each of ARAS and kubit constitutes a business combination as defined by the FASB Accounting Standards Codification (“ASC”) Topic 805, Business Combinations. Accordingly, the assets acquired and liabilities assumed were recorded at their fair values on the date of acquisition. The following allocation is based on the information that was available to make preliminary estimates of the fair value and may change as additional information becomes available and additional analyses are completed. While we believe such information provided a reasonable basis for estimating the fair values, we may obtain additional information and evidence during the measurement period that may 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 retrospectively reflected in future filings. These refinements include: (1) changes in the estimated fair value of certain intangible assets acquired; (2) changes in the estimated fair value of the contingent consideration; and (3) changes in deferred tax assets and liabilities related to the fair value estimates.
	Following is a summary of our preliminary allocation of the purchase price to the fair values of the assets acquired and liabilities assumed as of the date of each acquisition:
		ARAS		kubit
	Tangible assets acquired:
	Accounts receivable	$	269	$	250
	Other assets		9		246
	Total assets acquired		278		496
	Liabilities assumed:
	Accounts payable and accrued liabilities		41		315
	Other liabilities		210		353
	Total liabilities assumed		251		668
	Intangible assets
	Trade name		509		658
	Non-competition agreement		540		272
	Technology		2,052		945
	Customer relationship		2,250		715
	Total intangible assets		5,351		2,590
	Net assets acquired	$	5,378	$	2,418
	Deferred tax liability		1,385		669
	Purchase price, net cash of acquired		7,640		4,371
	Contingent consideration		808		987
	Goodwill	$	4,455	$	3,609
	The goodwill arising from the acquisitions consists largely of the expected synergies from combining operations as well as the value of the workforce. Intangible assets acquired with ARAS and kubit will be amortized over a weighted-average life of about 8 years. The intangible assets and goodwill of ARAS were assigned to the Americas’ reporting unit and the kubit intangible assets and goodwill were mainly assigned to the Europe/Africa’s reporting unit. The goodwill value is not expected to be tax deductible. We estimated the fair value of the contingent consideration using a monte carlo analysis, which is based on significant inputs, primarily forecasted future results of the acquired businesses, not observable in the market and thus represents a Level 3 measure as defined in ASC 820, Fair Value Measurements and Disclosures.
	Acquisition and integration costs are not included as components of consideration transferred, but are recorded as expense in the period in which such costs are incurred. To date, we have incurred approximately $0.2 million in acquisition and integration costs for each of the ARAS and kubit acquisitions.
	We have not furnished pro forma financial information related to our acquisitions of ARAS and kubit because such information is not material individually or in the aggregate to our overall financial results.

StockBased_Compensation_Tables

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 28, 2015
Assumptions Used to Estimate The Fair Value of The Performance-based Stock Options and Restricted Stock Units	The assumptions used to estimate the fair value of the performance-based stock options and restricted stock units under the Monte Carlo Simulation model are as follows:
		Three Months Ended
		March 28, 2015			March 29, 2014
	Risk-free interest rate		0.95% - 1.48	%		—
	Expected dividend yield		0	%		—
	Expected option life		4 years			—
	Expected volatility		44.5	%		—
	Weighted-average expected volatility		44.5	%		—
Fair Value of Options Granted	For stock options granted during the three months ended March 28, 2015 and March 29, 2014 valued using the Black-Scholes option-pricing model, we used the following assumptions:
		Three Months Ended
		March 28, 2015			March 29, 2014
	Risk-free interest rate		0.99% - 1.06	%		1.1	%
	Expected dividend yield		0	%		0	%
	Expected option life		3 years			4 years
	Expected volatility		42.3	%		42.5	%
	Weighted-average expected volatility		42.3	%		42.5	%
Summary of Stock Option Activity	A summary of stock option activity and weighted-average exercise prices for the three months ended March 28, 2015 follows:
		Options			Weighted-			Weighted-Average		Aggregate Intrinsic
					Average			Remaining		Value as of
					Exercise Price			Contractual Term		March 28, 2015
								(Years)
	Outstanding at January 1, 2015		898,429		$	44.4
	Granted		440,553			59.66
	Forfeited		(37,523	)		55.28
	Exercised		(59,749	)		32.67
	Outstanding at March 28, 2015		1,241,710		$	50.04			5.1	$	11,185
	Options exercisable at March 28, 2015		586,671		$	42.51			3.7	$	9,660
Summary of Restricted Stock Activity	The following table summarizes the restricted stock and restricted stock unit activity and weighted average grant-date fair values for the three months ended March 28, 2015:
		Shares			Weighted-Average
					Grant Date
					Fair Value
	Non-vested at January 1, 2015		13,955		$	43.57
	Granted		4,109			59.97
	Forfeited		(1,397	)		59.97
	Vested		(469	)		55.83
	Non-vested at March 28, 2015		16,198		$	47.08

Accounts_Receivable_Tables

Accounts Receivable (Tables)	3 Months Ended
	Mar. 28, 2015
Accounts Receivable	Accounts receivable consist of the following:
		As of			As of
		March 28, 2015			December 31, 2014
	Accounts receivable	$	64,359		$	85,803
	Allowance for doubtful accounts		(2,020	)		(1,844	)
	Total	$	62,339		$	83,959

Inventories_Tables

Inventories (Tables)	3 Months Ended
	Mar. 28, 2015
Inventories	Inventories consist of the following:
		As of		As of
		March 28, 2015		December 31, 2014
	Raw materials	$	27,428	$	27,058
	Finished goods		18,615		13,075
	Sales demonstration inventory		20,609		19,201
	Inventory, net	$	66,652	$	59,334
	Service inventory	$	21,494	$	20,646

Earnings_Per_Share_Tables

Earnings Per Share (Tables)	3 Months Ended
	Mar. 28, 2015
Reconciliation of Number of Common Shares Used in Calculation of Basic and Diluted Earnings Per Share (EPS)	A reconciliation of the number of common shares used in the calculation of basic and diluted earnings per share (EPS) is presented below:
		Three Months Ended
		March 28, 2015				March 29, 2014
		Shares		Per-Share		Shares		Per-Share
				Amount				Amount
	Basic EPS		17,335,464	$	0.04		17,205,892	$	0.29
	Effect of dilutive securities		176,357		—		158,481		—
	Diluted EPS		17,511,821	$	0.04		17,364,373	$	0.29

Accrued_Liabilities_Tables

Accrued Liabilities (Tables)	3 Months Ended
	Mar. 28, 2015
Accrued Liabilities	Accrued liabilities consist of the following:
		As of			As of
		March 28,			December 31,
		2015			2014
	Accrued compensation and benefits	$	12,586		$	17,544
	Accrued warranties		2,202			2,719
	Professional and legal fees		1,250			1,475
	Other accrued liabilities		3,733			4,389
		$	19,771		$	26,127
Activity Related to Accrued Warranties	Activity related to accrued warranties was as follows:
		Three Months Ended
		March 28, 2015			March 29, 2014
	Balance, beginning of period	$	2,719		$	2,364
	Provision for warranty expense		755			869
	Fulfillment of warranty obligations		(1,272	)		(995	)
	Balance, end of period	$	2,202		$	2,238

Segment_Reporting_Tables

Segment Reporting (Tables)	3 Months Ended
	Mar. 28, 2015
Segment Reporting Information	The following table presents information about our reportable segments:
		Three Months Ended
		March 28, 2015			March 29, 2014
	Americas Region
	Net sales to external customers	$	30,398		$	29,594
	Depreciation and amortization		1,522			1,005
	Operating loss		(2,174	)		(78	)
	Long-lived assets		48,095			24,384
	Capital expenditures		1,635			1,129
	Total assets		217,587			203,080
	Europe/Africa Region
	Net sales to external customers	$	22,209		$	23,836
	Depreciation and amortization		611			511
	Operating income		33			2,114
	Long-lived assets		21,791			17,615
	Capital expenditures		596			698
	Total assets		118,559			118,230
	Asia-Pacific Region
	Net sales to external customers	$	17,332		$	19,944
	Depreciation and amortization		360			331
	Operating income		3,997			4,924
	Long-lived assets		2,909			2,552
	Capital expenditures		205			71
	Total assets		78,315			70,953
	Totals
	Net sales to external customers	$	69,939		$	73,374
	Depreciation and amortization		2,493			1,847
	Operating income		1,856			6,960
	Long-lived assets		72,795			44,551
	Capital expenditures		2,436			1,898
	Total assets		414,461			392,263

Business_Combinations_Tables

Business Combinations (Tables)	3 Months Ended
	Mar. 28, 2015
Preliminary Allocation of Purchase Price to Fair Values of Assets Acquired and Liabilities Assumed	Following is a summary of our preliminary allocation of the purchase price to the fair values of the assets acquired and liabilities assumed as of the date of each acquisition:
		ARAS		kubit
	Tangible assets acquired:
	Accounts receivable	$	269	$	250
	Other assets		9		246
	Total assets acquired		278		496
	Liabilities assumed:
	Accounts payable and accrued liabilities		41		315
	Other liabilities		210		353
	Total liabilities assumed		251		668
	Intangible assets
	Trade name		509		658
	Non-competition agreement		540		272
	Technology		2,052		945
	Customer relationship		2,250		715
	Total intangible assets		5,351		2,590
	Net assets acquired	$	5,378	$	2,418
	Deferred tax liability		1,385		669
	Purchase price, net cash of acquired		7,640		4,371
	Contingent consideration		808		987
	Goodwill	$	4,455	$	3,609

StockBased_Compensation_Additi

Stock-Based Compensation - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 28, 2015	Mar. 29, 2014
	Installment
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based awards, number of equal annual installments	3
Vesting period, years	3 years
Weighted-average grant-date fair value of restricted stock unit granted	$59.97
Total intrinsic value of stock options exercised	$1,600,000	$900,000
Fair value of stock options vested	3,800,000	3,600,000
Stock-based compensation expense	1,198,000	1,246,000
Unrecognized stock-based compensation expense	$11,200,000
Weighted average, expected recognition period	2 years 6 months
Black Scholes Option Pricing Model
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant-date fair value of stock options granted	$17.48	$19.79
Monte Carlo Simulation Valuation model
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant-date fair value of stock options granted	$19.97
Weighted-average grant-date fair value of restricted stock unit granted	$44.45

Assumptions_Used_to_Estimate_T

Assumptions Used to Estimate The Fair Value of The Performance-based Stock Options and Restricted Stock Units (Detail) (Performance-Based Stock Options and Restricted Stock Units)	3 Months Ended
	Mar. 28, 2015	Mar. 29, 2014
Performance-Based Stock Options and Restricted Stock Units
Fair Value, Option, Quantitative Disclosures [Line Items]
Risk-free interest rate	0.00%	0.00%
Risk-free interest rate, minimum	0.95%
Risk-free interest rate, maximum	1.48%
Expected dividend yield	0.00%
Expected option life	4 years
Expected volatility	44.50%
Weighted-average expected volatility	44.50%

Fair_Value_of_Option_Granted_D

Fair Value of Option Granted (Detail) (Equity Option)	3 Months Ended
	Mar. 28, 2015	Mar. 29, 2014
Equity Option
Fair Value, Option, Quantitative Disclosures [Line Items]
Risk-free interest rate		1.10%
Risk-free interest rate, minimum	0.99%
Risk-free interest rate, maximum	1.06%
Expected dividend yield	0.00%	0.00%
Expected option life	3 years	4 years
Expected volatility	42.30%	42.50%
Weighted-average expected volatility	42.30%	42.50%

Summary_of_Stock_Option_Activi

Summary of Stock Option Activity (Detail) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 28, 2015
Options Outstanding
Outstanding, beginning balance	898,429
Granted	440,553
Forfeited	-37,523
Exercised	-59,749
Outstanding, ending balance	1,241,710
Options exercisable at end of period	586,671
Weighted-Average Exercise Price
Outstanding, beginning balance	$44.40
Granted	$59.66
Forfeited	$55.28
Exercised	$32.67
Outstanding, ending balance	$50.04
Options exercisable at end of period	$42.51
Weighted-Average Remaining Contractual Term
Outstanding at end of period	5 years 1 month 6 days
Options exercisable at end of period	3 years 8 months 12 days
Aggregate Intrinsic Value
Outstanding at end of period	$11,185
Options exercisable at end of period	$9,660

Summary_of_Restricted_Stock_Ac

Summary of Restricted Stock Activity (Detail) (USD $)	3 Months Ended
	Mar. 28, 2015
Shares
Non-vested at beginning of period	13,955
Granted	4,109
Forfeited	-1,397
Vested	-469
Non-vested at end of period	16,198
Weighted-Average Grant Date Fair Value
Non-vested at beginning of period	$43.57
Granted	$59.97
Forfeited	$59.97
Vested	$55.83
Non-vested at end of period	$47.08

Cash_and_Cash_Equivalents_Addi

Cash and Cash Equivalents - Additional Information (Detail) (Maximum)	3 Months Ended
	Mar. 28, 2015
Maximum
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents maturity period	3 months

Short_Term_Investments_Additio

Short Term Investments - Additional Information (Detail) (USD $)	Mar. 28, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Securities Purchased Under Agreements to Resell and Other Short Term Investment Securities [Line Items]
Short-term investments	$64,993	$64,995
Weighted average interest rate on U.S. Treasury bills, maximum	1.00%	1.00%
US Treasury Bill Securities
Securities Purchased Under Agreements to Resell and Other Short Term Investment Securities [Line Items]
Short-term investments	$64,993	$64,995

Accounts_Receivable_Detail

Accounts Receivable (Detail) (USD $)	Mar. 28, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	$64,359	$85,803
Allowance for doubtful accounts	-2,020	-1,844
Total	$62,339	$83,959

Inventories_Additional_Informa

Inventories - Additional Information (Detail)	3 Months Ended
	Mar. 28, 2015
Inventory [Line Items]
Shelf life demonstration inventory, months	12 months

Inventories_Detail

Inventories (Detail) (USD $)	Mar. 28, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Inventory [Line Items]
Raw materials	$27,428	$27,058
Finished goods	18,615	13,075
Sales demonstration inventory	20,609	19,201
Inventory, net	66,652	59,334
Service inventory	$21,494	$20,646

Earnings_Per_Share_Additional_

Earnings Per Share - Additional Information (Detail)	3 Months Ended
	Mar. 28, 2015	Mar. 29, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from calculation of diluted EPS, as they were antidilutive	696,095	408,477

Reconciliation_of_Number_of_Co

Reconciliation of Number of Common Shares Used in Calculation of Basic and Diluted Earnings Per Share (EPS) (Detail) (USD $)	3 Months Ended
	Mar. 28, 2015	Mar. 29, 2014
Earnings Per Share [Line Items]
Weighted average shares - Basic	17,335,464	17,205,892
Effect of dilutive securities, shares	176,357	158,481
Diluted EPS, shares	17,511,821	17,364,373
Basic EPS	$0.04	$0.29
Effect of dilutive securities	$0	$0
Diluted EPS	$0.04	$0.29

Accrued_Liabilities_Detail

Accrued Liabilities (Detail) (USD $)	Mar. 28, 2015	Dec. 31, 2014	Mar. 29, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Schedule of Accrued Liabilities [Line Items]
Accrued compensation and benefits	$12,586	$17,544
Accrued warranties	2,202	2,719	2,238	2,364
Professional and legal fees	1,250	1,475
Other accrued liabilities	3,733	4,389
Accrued liabilities	$19,771	$26,127

Activity_Related_to_Accrued_Wa

Activity Related to Accrued Warranties (Detail) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 28, 2015	Mar. 29, 2014
Product Warranty Liability [Line Items]
Beginning Balance	$2,719	$2,364
Provision for warranty expense	755	869
Fulfillment of warranty obligations	-1,272	-995
Ending Balance	$2,202	$2,238

Income_Taxes_Additional_Inform

Income Taxes - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 28, 2015	Mar. 29, 2014
Income Taxes [Line Items]
INCOME TAX (BENEFIT) EXPENSE	($96,000)	$1,841,000
Income tax expense increase (decrease)	-1,900,000
Discrete tax benefit due to the reversal of a valuation allowance	$200,000
Effective tax rate	-16.90%	27.00%

Segment_Reporting_Additional_I

Segment Reporting - Additional Information (Detail)	3 Months Ended
	Mar. 28, 2015
	Customer
	Segment
Segment Reporting Disclosure [Line Items]
Number of reportable segments	3
Customers that individually accounted for 10% or more of total revenue	0
Minimum
Segment Reporting Disclosure [Line Items]
Percentage of product sales to consolidated sales	99.00%

Segment_Reporting_Information_

Segment Reporting Information (Detail) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 28, 2015	Mar. 29, 2014	Dec. 31, 2014
Segment Reporting Information [Line Items]
Net sales to external customers	$69,939	$73,374
Depreciation and amortization	2,493	1,847
Operating income	1,856	6,960
Long-lived assets	72,795	44,551
Capital expenditures	2,436	1,898
Total assets	414,461	392,263	425,463
Americas Region
Segment Reporting Information [Line Items]
Net sales to external customers	30,398	29,594
Depreciation and amortization	1,522	1,005
Operating income	-2,174	-78
Long-lived assets	48,095	24,384
Capital expenditures	1,635	1,129
Total assets	217,587	203,080
Europe/Africa Region
Segment Reporting Information [Line Items]
Net sales to external customers	22,209	23,836
Depreciation and amortization	611	511
Operating income	33	2,114
Long-lived assets	21,791	17,615
Capital expenditures	596	698
Total assets	118,559	118,230
Asia-Pacific Region
Segment Reporting Information [Line Items]
Net sales to external customers	17,332	19,944
Depreciation and amortization	360	331
Operating income	3,997	4,924
Long-lived assets	2,909	2,552
Capital expenditures	205	71
Total assets	$78,315	$70,953

Commitments_and_Contingencies_

Commitments and Contingencies - Additional Information (Detail) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Mar. 28, 2015
Commitments and Contingencies [Line Items]
Lease future expiration date, year	2024
Total operating lease obligations	$6.70
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	90 days

Line_of_Credit_Additional_Info

Line of Credit - Additional Information (Detail) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Mar. 28, 2015
Line of Credit Facility [Line Items]
Available line of credit	$30
Line of credit, variable rate basis	LIBOR plus a fixed percentage between 1.50% and 2.00%
Minimum cash balance required to maintain under the credit agreement	$25
Line of credit, expiration date	31-Mar-15
LIBOR | Minimum
Line of Credit Facility [Line Items]
Line of credit basis spread on variable rate	1.50%
LIBOR | Maximum
Line of Credit Facility [Line Items]
Line of credit basis spread on variable rate	2.00%

Business_Combinations_Addition

Business Combinations - Additional Information (Detail) (USD $)	3 Months Ended	1 Months Ended
	Mar. 28, 2015	Feb. 28, 2015	Mar. 28, 2015
Business Acquisition [Line Items]
Business acquisition, cash	$12,011,000
Maximum measurement period after the acquisition date	1 year
Intangible assets acquired, weighted-average amortization period	8 years
Business acquisition, acquisition and integration costs	200,000
ARAS
Business Acquisition [Line Items]
Business acquisition, cash		7,700,000
Business acquisition, contingent consideration		4,000,000
Earn out period for contingent consideration		2 years
Kubit GmbH
Business Acquisition [Line Items]
Business acquisition, cash			4,500,000
Business acquisition, contingent consideration			$3,300,000
Earn out period for contingent consideration			3 years

Preliminary_Allocation_of_Purc

Preliminary Allocation of Purchase Price to Fair Values of Assets Acquired and Liabilities Assumed (Detail) (USD $)	1 Months Ended
In Thousands, unless otherwise specified	Feb. 28, 2015	Mar. 28, 2015	Dec. 31, 2014
Intangible assets
Goodwill		$25,761	$19,205
ARAS
Tangible assets acquired:
Accounts receivable	269
Other assets	9
Total assets acquired	278
Liabilities assumed:
Accounts payable and accrued liabilities	41
Other liabilities	210
Total liabilities assumed	251
Intangible assets
Intangible assets	5,351
Net assets acquired	5,378
Deferred tax liability	1,385
Purchase price, net cash of acquired	7,640
Contingent consideration	808
Goodwill	4,455
ARAS | Trade Names
Intangible assets
Intangible assets	509
ARAS | Noncompete Agreements
Intangible assets
Intangible assets	540
ARAS | Technology-Based Intangible Assets
Intangible assets
Intangible assets	2,052
ARAS | Customer Relationships
Intangible assets
Intangible assets	2,250
Kubit GmbH
Tangible assets acquired:
Accounts receivable		250
Other assets		246
Total assets acquired		496
Liabilities assumed:
Accounts payable and accrued liabilities		315
Other liabilities		353
Total liabilities assumed		668
Intangible assets
Intangible assets		2,590
Net assets acquired		2,418
Deferred tax liability		669
Purchase price, net cash of acquired		4,371
Contingent consideration		987
Goodwill		3,609
Kubit GmbH | Trade Names
Intangible assets
Intangible assets		658
Kubit GmbH | Noncompete Agreements
Intangible assets
Intangible assets		272
Kubit GmbH | Technology-Based Intangible Assets
Intangible assets
Intangible assets		945
Kubit GmbH | Customer Relationships
Intangible assets
Intangible assets		$715