Cover page
Cover page - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 14, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 0-23081 | ||
Entity Registrant Name | FARO TECHNOLOGIES, INC. | ||
Entity Incorporation, State or Country Code | FL | ||
Entity Tax Identification Number | 59-3157093 | ||
Entity Address, Address Line One | 250 Technology Park, | ||
Entity Address, City or Town | Lake Mary, | ||
Entity Address, State or Province | FL | ||
Entity Address, Postal Zip Code | 32746 | ||
City Area Code | 407 | ||
Local Phone Number | 333-9911 | ||
Title of 12(b) Security | Common Stock, par value $.001 | ||
Trading Symbol | FARO | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,405,017,473 | ||
Entity Common Stock, Shares Outstanding | 18,206,064 | ||
Documents Incorporated by Reference | Portions of the Registrant’s proxy statement for the 2021 Annual Meeting of Shareholders are incorporated by reference in Part III of this Annual Report on Form 10-K. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000917491 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | GRANT THORNTON LLP |
Auditor Location | Orlando, Florida |
Auditor Firm ID | 248 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 121,989 | $ 185,633 |
Accounts receivable, net | 78,523 | 64,616 |
Inventories, net | 53,145 | 47,391 |
Prepaid expenses and other current assets | 19,793 | 26,295 |
Total current assets | 273,450 | 323,935 |
Non-current assets: | ||
Property, plant and equipment, net | 22,194 | 23,091 |
Operating lease right-of-use asset | 22,543 | 26,107 |
Goodwill | 82,096 | 57,541 |
Intangible assets, net | 25,616 | 13,301 |
Service and sales demonstration inventory, net | 30,554 | 31,831 |
Deferred income tax assets, net | 21,277 | 47,450 |
Other long-term assets | 2,010 | 2,336 |
Total assets | 479,740 | 525,592 |
Current liabilities: | ||
Accounts payable | 14,199 | 14,121 |
Accrued liabilities | 28,208 | 42,593 |
Income taxes payable | 4,499 | 3,442 |
Current portion of unearned service revenues | 40,838 | 39,149 |
Customer deposits | 5,399 | 2,807 |
Lease liability | 5,738 | 5,835 |
Total current liabilities | 98,881 | 107,947 |
Unearned service revenues - less current portion | 22,350 | 21,757 |
Lease liability - less current portion | 18,648 | 22,131 |
Deferred income tax liabilities | 1,058 | 787 |
Income taxes payable - less current portion | 11,297 | 11,583 |
Other long-term liabilities | 1,047 | 1,084 |
Total liabilities | 153,281 | 165,289 |
Commitments and contingencies - See Note 12 | ||
Shareholders’ equity: | ||
Preferred stock - par value $0.01, 10,000,000 shares authorized; none issued | 0 | 0 |
Common stock - par value $0.001, 50,000,000 shares authorized; 19,588,003 and 19,384,350 issued; 18,205,636 and 17,990,707 outstanding, respectively | 20 | 19 |
Additional paid-in capital | 301,061 | 287,979 |
Retained earnings | 73,544 | 113,508 |
Accumulated other comprehensive loss | (17,374) | (10,160) |
Common stock in treasury, at cost - 1,382,367 and 1,393,643 shares held, respectively | (30,792) | (31,043) |
Total shareholders’ equity | 326,459 | 360,303 |
Total liabilities and shareholders’ equity | $ 479,740 | $ 525,592 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in share) | 50,000,000 | 50,000,000 |
Common stock, shares, issued (in shares) | 19,588,003 | 19,384,350 |
Common stock, shares, outstanding (in shares) | 18,205,636 | 17,990,707 |
Treasury stock, shares (in share) | 1,382,367 | 1,393,643 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SALES | |||
Sales | $ 337,814 | $ 303,768 | $ 381,765 |
COST OF SALES | |||
Total cost of sales | 153,887 | 143,921 | 183,633 |
GROSS PROFIT | 183,927 | 159,847 | 198,132 |
OPERATING EXPENSES | |||
Selling, general and administrative | 136,234 | 131,827 | 177,378 |
Research and development | 48,761 | 42,896 | 44,175 |
Restructuring costs | 7,368 | 15,806 | 0 |
Impairment loss | 0 | 0 | 35,213 |
Total operating expenses | 192,363 | 190,529 | 256,766 |
LOSS FROM OPERATIONS | (8,436) | (30,682) | (58,634) |
OTHER EXPENSE (INCOME) | |||
Interest income | 0 | (340) | (714) |
Other expense, net | 70 | 431 | 2,313 |
Interest expense | 55 | 0 | 781 |
LOSS BEFORE INCOME TAX EXPENSE (BENEFIT) | (8,561) | (30,773) | (61,014) |
INCOME TAX EXPENSE (BENEFIT) | 31,403 | (31,402) | 1,133 |
NET (LOSS) INCOME | $ (39,964) | $ 629 | $ (62,147) |
NET (LOSS) INCOME PER SHARE - BASIC (in dollars per share) | $ (2.20) | $ 0.04 | $ (3.58) |
NET (LOSS) INCOME PER SHARE - DILUTED (in dollars per share) | $ (2.20) | $ 0.04 | $ (3.58) |
Weighted average shares - Basic (in shares) | 18,187,946 | 17,769,958 | 17,383,415 |
Weighted average shares - Diluted (in shares) | 18,187,946 | 17,926,324 | 17,383,415 |
Product | |||
SALES | |||
Sales | $ 251,103 | $ 218,587 | $ 289,679 |
COST OF SALES | |||
Total cost of sales | 109,024 | 98,864 | 133,246 |
Service | |||
SALES | |||
Sales | 86,711 | 85,181 | 92,086 |
COST OF SALES | |||
Total cost of sales | $ 44,863 | $ 45,057 | $ 50,387 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income | $ (39,964) | $ 629 | $ (62,147) |
Currency translation adjustments, net of income tax | (7,214) | 7,239 | 1,084 |
Comprehensive (loss) income | $ (47,178) | $ 7,868 | $ (61,063) |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss | Common Stock in Treasury |
Beginning balance (in shares) at Dec. 31, 2018 | 17,253,011 | |||||||
Beginning balance at Dec. 31, 2018 | $ 376,609 | $ (327) | $ 19 | $ 251,329 | $ 175,353 | $ (327) | $ (18,483) | $ (31,609) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) income | (62,147) | (62,147) | ||||||
Currency translation adjustment, net of income tax | 1,084 | 1,084 | ||||||
Stock-based compensation | 11,071 | 11,071 | ||||||
Common stock issued, net of shares withheld for employee taxes (in shares) | 323,607 | |||||||
Common stock issued, net of shares withheld for employee taxes | 5,702 | 5,468 | 234 | |||||
Ending balance (in shares) at Dec. 31, 2019 | 17,576,618 | |||||||
Ending balance at Dec. 31, 2019 | 331,992 | $ 19 | 267,868 | 112,879 | (17,399) | (31,375) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) income | 629 | 629 | ||||||
Currency translation adjustment, net of income tax | 7,239 | 7,239 | ||||||
Stock-based compensation | 8,314 | 8,314 | ||||||
Common stock issued, net of shares withheld for employee taxes (in shares) | 414,089 | |||||||
Common stock issued, net of shares withheld for employee taxes | $ 12,129 | 11,797 | 332 | |||||
Ending balance (in shares) at Dec. 31, 2020 | 17,990,707 | 17,990,707 | ||||||
Ending balance at Dec. 31, 2020 | $ 360,303 | $ 19 | 287,979 | 113,508 | (10,160) | (31,043) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) income | (39,964) | (39,964) | ||||||
Currency translation adjustment, net of income tax | (7,214) | (7,214) | ||||||
Stock-based compensation | 11,456 | 11,456 | ||||||
Common stock issued, net of shares withheld for employee taxes (in shares) | 214,929 | |||||||
Common stock issued, net of shares withheld for employee taxes | $ 1,878 | $ 1 | 1,626 | 251 | ||||
Ending balance (in shares) at Dec. 31, 2021 | 18,205,636 | 18,205,636 | ||||||
Ending balance at Dec. 31, 2021 | $ 326,459 | $ 20 | $ 301,061 | $ 73,544 | $ (17,374) | $ (30,792) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
OPERATING ACTIVITIES: | |||
Net (loss) income | $ (39,964,000) | $ 629,000 | $ (62,147,000) |
Adjustments to reconcile net (loss) income to net cash used by operating activities: | |||
Depreciation and amortization | 13,396,000 | 14,239,000 | 18,516,000 |
Stock-based compensation | 11,456,000 | 8,314,000 | 11,071,000 |
Provision for bad debts (net of recoveries) | 176,000 | 440,000 | 2,090,000 |
Loss on disposal of assets | 218,000 | 383,000 | 2,639,000 |
Provision for excess and obsolete inventory | 2,297,000 | 1,349,000 | 16,886,000 |
Impairment of goodwill | 0 | 0 | 21,233,000 |
Impairment of acquired intangibles | 0 | 0 | 10,548,000 |
Impairment of loan to affiliate | 0 | 0 | 549,000 |
Deferred income tax expense (benefit) | 24,706,000 | (28,444,000) | (6,304,000) |
(Increase) decrease in: | |||
Accounts receivable, net | (15,577,000) | 12,346,000 | 10,406,000 |
Inventories | (6,706,000) | 10,343,000 | (4,136,000) |
Prepaid expenses and other assets | 5,996,000 | 3,862,000 | 1,188,000 |
(Decrease) increase in: | |||
Accounts payable and accrued liabilities | (13,260,000) | 2,390,000 | (2,518,000) |
Income taxes payable | 847,000 | (3,357,000) | 1,041,000 |
Customer deposits | 2,627,000 | (374,000) | (30,000) |
Unearned service revenues | 312,000 | (726,000) | 11,436,000 |
Net cash (used in) provided by operating activities | (13,476,000) | 21,394,000 | 32,468,000 |
INVESTING ACTIVITIES: | |||
Purchases of investments | 0 | 0 | (50,000,000) |
Proceeds from sale of investments | 0 | 25,000,000 | 50,000,000 |
Purchases of property and equipment | (7,035,000) | (4,774,000) | (6,675,000) |
Cash paid for technology development, patents and licenses | (4,905,000) | (1,298,000) | (2,118,000) |
Acquisition of business, net of cash received | (33,800,000) | (6,036,000) | 0 |
Other | 0 | 1,015,000 | (549,000) |
Net cash (used in) provided by investing activities | (45,740,000) | 13,907,000 | (9,342,000) |
FINANCING ACTIVITIES: | |||
Payments on capital leases | (296,000) | (338,000) | (358,000) |
Payments of contingent consideration for acquisitions | 0 | (733,000) | (3,101,000) |
Payment, Tax Withholding, Share-based Payment Arrangement | (4,002,000) | (2,602,000) | (2,199,000) |
Proceeds from issuance of stock related to stock option exercises | 5,880,000 | 14,731,000 | 7,901,000 |
Net cash provided by financing activities | 1,582,000 | 11,058,000 | 2,243,000 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (6,010,000) | 5,640,000 | (518,000) |
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (63,644,000) | 51,999,000 | 24,851,000 |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 185,633,000 | 133,634,000 | 108,783,000 |
CASH AND CASH EQUIVALENTS, END OF YEAR | $ 121,989,000 | $ 185,633,000 | $ 133,634,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business —FARO Technologies, Inc. and its subsidiaries (collectively “FARO,” the “Company,” “us,” “we” or “our”) design, develop, manufacture, market and support software driven, three-dimensional (“3D”) measurement, imaging, and realization solutions for the 3D metrology, architecture, engineering and construction (“AEC”), Operations and Maintenance (“O&M”) and public safety analytics markets. We enable our customers to capture, measure, manipulate, interact with and share 3D and 2D data from the physical world in a virtual environment and then translate this information back into the physical domain. Our broad technology set equips our customers with a wide range of 3D capture technologies that range from ultra-high accuracy laser scanner based technology to lower accuracy, photogrammetry based technology. Our FARO suite of 3D products and software solutions are used for inspection of components and assemblies, rapid prototyping, reverse engineering, documenting large volume or structures in 3D, surveying and construction, construction management, assembly layout, machine guidance as well as in investigation and reconstructions of crash and crime scenes. We sell the majority of our solutions through a direct sales force, with an increasing volume being sold through an indirect channel across a range of industries including automotive, aerospace, metal and machine fabrication, surveying, architecture, engineering and construction, public safety forensics and other industries. Principles of Consolidation —Our 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). Revenue Recognition, Product Warranty and Extended Warranty Contracts —Revenue is recognized as performance obligations within a contract are satisfied in an amount that reflects the consideration we expect to receive in exchange for satisfaction of those performance obligations, or standalone selling price. Our contracts with customers may include multiple performance obligations. For such arrangements, we allocate revenues to each performance obligation based on its relative standalone selling price. We make this allocation estimate utilizing data from the sale of our applicable products and services to customers separately in similar circumstances. Revenue related to our measurement and imaging equipment and related software is generally recognized upon shipment from our facilities or when delivered to the customer's location, as determined by the agreed upon shipping terms, at which time we are entitled to payment and title and control has passed to the customer. Fees billed to customers associated with the distribution of products are classified as revenue. We generally warrant our products against defects in design, materials and workmanship for one year. A provision for estimated future costs relating to warranty expense is recorded when products are shipped. To support our product lines, we also sell hardware service contracts which revenues are recognized on a straight-line basis over the term of the contract. Hardware service contracts generally extend between one month and three years. Costs relating to hardware service contracts are recognized as incurred. Revenue from sales of software only is recognized when no further significant production, modification or customization of the software is required and when the risks and rewards of ownership have passed to the customer. These software arrangements generally include short-term maintenance that is considered post-contract support (“PCS”), which is considered to be a separate performance obligation. We generally establish a standalone sales price for this PCS component based on our software maintenance contract renewals. Software maintenance contracts, when sold, are recognized on a straight-line basis over the term of the contract. Revenues resulting from sales of comprehensive support, training and technology consulting services are recognized as such services are performed and are deferred when billed in advance of the performance of services. Payment for products and services is collected within a short period of time following transfer of control or commencement of delivery of services, as applicable. Revenues are presented net of sales-related taxes. Cash and Cash Equivalents —We consider cash on hand and amounts on deposit with financial institutions with maturities of three months or less when purchased to be cash and cash equivalents. We had deposits with foreign banks totaling $95.2 million and $119.2 million as of December 31, 2021 and 2020, respectively. Accounts Receivable and Related Allowance for Credit Losses —Credit is extended to customers based on an evaluation of a customer’s financial condition and, generally, collateral is not required. Accounts receivable are generally due within 30 to 90 days and are stated at amounts due from customers, net of an allowance for credit losses. Accounts outstanding longer than the contractual payment terms are considered past due. We make judgments as to the collectability of accounts receivable based on historical trends and future expectations. Management estimates an allowance for credit losses, which adjusts gross trade accounts receivable to their net realizable value. The allowance for credit losses is based on an analysis of all receivables for possible impairment issues and historical write-off percentages. We write off accounts receivable when they become uncollectible, and payments subsequently received on such receivables are credited to the allowance for credit losses. We do not generally charge interest on past due receivables. Inventories —Inventories are stated at the lower of cost or net realizable value using the first-in first-out (“FIFO”) 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 and imaging devices utilized by sales representatives to present our products to customers. Management expects sales demonstration inventory to be held by our sales representatives for up to three years, at which time it is 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 be sold within 12 months at prices that produce reduced gross margins. Sales demonstration inventory remains classified as inventory, as it is available for sale and any required refurbishment prior to sale is minimal. Service inventory is typically 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 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 its remaining useful life, typically three years. See Note 5, “Inventories” for further information regarding inventories. Reserve for Excess and Obsolete Inventory— Because the value of inventory that will ultimately be realized cannot be known with exact certainty, we rely upon both past sales history and future sales forecasts to provide a basis for the determination of the reserve. Inventory is considered potentially obsolete if we have withdrawn those products from the market or had no sales of the product for the past 12 months and have no sales forecasted for the next 12 months. Inventory is considered potentially excess if the quantity on hand exceeds 12 months of expected remaining usage. The resulting potentially obsolete and excess parts are then reviewed to determine if a substitute usage or a future need exists. Items without an identified current or future usage are reserved in an amount equal to 100% of the FIFO cost of such inventory. Our products are subject to changes in technologies that may make certain of our products or their components obsolete or less competitive, which may increase our historical provisions to the reserve. We review these assumptions regularly for all of our inventories which include sales demonstration and service inventories. Property and Equipment —Property and equipment purchases exceeding one thousand dollars are capitalized and recorded at cost. Depreciation is computed beginning on the date that the asset is placed into service using the straight-line method over the estimated useful lives of the various classes of assets as follows: Machinery, equipment and software 2 to 5 years Furniture and fixtures 3 to 10 years Leasehold improvements are amortized on a straight-line basis over the lesser of the life of the asset or the remaining term of the lease. Depreciation expense was $9.2 million, $10.8 million and $13.0 million in 2021, 2020 and 2019, respectively. Accelerated methods of depreciation are used for income tax purposes in contrast to book purposes, and as a result, appropriate provisions are made for the related deferred income taxes. Balances of major classes of depreciable assets and total accumulated depreciation as of December 31, 2021 and 2020 are as follows: December 31, 2021 December 31, 2020 Property, plant and equipment: Machinery and equipment $ 87,028 $ 91,984 Furniture and fixtures 6,377 6,620 Leasehold improvements 22,931 21,414 Property, plant and equipment at cost 116,336 120,018 Less: accumulated depreciation and amortization (94,142) (96,927) Property, plant and equipment, net $ 22,194 $ 23,091 Business Combinations —We allocate the fair value of purchase consideration to the assets acquired and liabilities assumed based generally on their fair values at the acquisition date. The excess of the fair value of purchase consideration over the fair value of these assets acquired and liabilities assumed is recorded as goodwill. When determining the fair values of assets acquired and liabilities assumed, management makes significant estimates and assumptions, especially with respect to intangible assets. Critical estimates in valuing intangible assets include, but are not limited to, expected future cash flows, which include consideration of future growth rates and margins, customer attrition rates, future changes in technology and brand awareness, loyalty and position, and discount rates. Critical estimates are also made in valuing contingent considerations, which represent arrangements to pay former owners based on the satisfaction of performance criteria. Fair value estimates are based on the assumptions management believes a market participant would use in pricing the asset or liability. Amounts recorded in a business combination may change during the measurement period, which is a period not to exceed one year from the date of acquisition, as additional information about conditions existing at the acquisition date becomes available. Goodwill and Intangible Assets —Goodwill represents the excess cost of a business acquisition over the fair value of the net assets acquired. We do not amortize goodwill; however, we perform an annual review each year, or more frequently if indicators of potential impairment exist (i.e., that it is more likely than not that the fair value of the reporting unit is less than the carrying value), to determine if the carrying value of the recorded goodwill or indefinite lived intangible assets is impaired. Each period, and for our single reporting unit, we can elect to perform a qualitative assessment to determine whether it is necessary to perform a quantitative goodwill impairment test. If we believe, as a result of our qualitative assessment, that it is not more likely than not that the fair value of our reporting unit containing goodwill is less than its carrying amount, then the quantitative goodwill impairment test is unnecessary. If we elect to bypass the qualitative assessment option, or if the qualitative assessment was performed and resulted in the Company being unable to conclude that it is not more likely than not that the fair value of a reporting unit containing goodwill is greater than its carrying amount, we will perform the quantitative goodwill impairment test. We calculate the fair value of the reporting unit using a discounted cash flow method and market approach method, and then comparing the respective fair value with the carrying amount of the reporting unit. If the carrying amount of the reporting unit exceeds its fair value, we record the amount of the impairment loss, if any. Management concluded there was no goodwill impairment for the year ended December 31, 2021, no goodwill impairment for the year ended December 31, 2020 and $21.2 million impairment loss for the year ended December 31, 2019. We test goodwill for impairment annually on December 31 of each reporting year or more frequently if an event occurs or circumstances would indicate that it is more likely than not the fair value of the reporting unit is less than the carrying value. We performed our annual quantitative test of goodwill during 2021 and 2020 as of December 31. We changed the timing of our annual test of goodwill during 2019 to align with our updated strategic plan and annual budgetary process. Accordingly, we performed our annual quantitative test for impairment of our recorded goodwill as of December 10, 2019. As a result of this test, the estimated fair value of each of the Photonics reporting unit, which included goodwill recognized with the Instrument Associates, LLC d/b/a Nutfield Technology (“Nutfield”), Laser Control Systems Limited (“Laser Control Systems”) and Lanmark Controls, Inc. (“Lanmark”) acquisitions, and the 3D Design reporting unit, which included goodwill recognized with the acquisition of Opto-Tech SRL and its subsidiary Open Technologies SRL (collectively, “Open Technologies”), were determined to be significantly less than the carrying value of such reporting unit, indicating a full impairment. This $21.2 million impairment loss was driven primarily by historical and projected financial performance lower than our expectations and changes in our go-forward strategy in connection with our new strategic plan. See Note 6, “Goodwill” for further information regarding goodwill. Other intangible assets principally include patents, existing product technology and customer relationships that arose in connection with our acquisitions. Other intangible assets are recorded at fair value at the date of acquisition and are amortized over their estimated useful lives of 3 to 20 years. As of December 31, 2021 and 2020, there were no indefinite-lived intangible assets. Product technology and patents are recorded at cost. Amortization expense is computed using the straight-line method over the estimated useful lives of the product technology and patents of 7 to 20 years. Internally developed software exceeding one thousand dollars are capitalized and recorded at cost. Amortization expense is computed using the straight-line method over the estimated useful lives of the internally developed software ranging between 1 to 5 years. The remaining weighted-average amortization period for all our intangible assets is 9 years. As a result of historical and projected financial performance being lower than our expectations and changes in our go-forward strategy in connection with our new strategic plan, the estimated fair value of acquired intangibles recognized with the Nutfield, Laser Control Systems, Lanmark and Open Technologies acquisitions were determined to be less than the net carrying value for such assets. We recognized an impairment charge related to such acquired intangibles of $10.5 million in 2019. We recognized no impairment charges related to intangibles in 2021 or 2020. See Note 7, “Intangible Assets” for further information regarding intangible assets. Research and Development —Research and development costs incurred in the discovery of new knowledge and the resulting translation of this new knowledge into plans and designs for new products prior to the attainment of the related products’ technological feasibility are recorded as expenses in the period incurred. To date, the time incurred between the attainment of the related products' technological feasibility and general release to customers has been short. Research and development costs incurred relating to the development of internal-use software and website development, including software used to upgrade and enhance our websites and applications to be sold as a service are capitalized in the period incurred and amortized over 1 year to 5 years. These costs include external direct costs of materials and services and internal costs such as payroll and benefits of those employees directly associated with the development of new functionality in internal use software to be sold as a service. Any costs related to preliminary project activities and post implementation activities of internal-use software are expensed as incurred. The amount of costs capitalized during 2021 relating to internally developed computer software to be sold as a service was $2.0 million and no costs were capitalized in 2020. No amounts were charged to expense during 2021, 2020 or 2019. These capitalized costs, which total $2.0 million as of December 31, 2021 and zero as of December 31, 2020 are primarily included in net intangible assets in our consolidated balance sheet. Reserve for Warranties —We establish at the time of sale a liability for the one-year warranty included with the initial purchase price of our products, based upon an estimate of the repair expenses likely to be incurred for the warranty period. The warranty period is measured in installation-months for each major product group. The warranty reserve is included in accrued liabilities in the accompanying consolidated balance sheets. The warranty expense is estimated by applying the actual total repair expenses for each product group in the prior period and determining a rate of repair expense per installation-month. This repair rate is multiplied by the number of installation-months of warranty for each product group to determine the provision for warranty expenses for the period. We evaluate our exposure to warranty costs at the end of each period using the estimated expense per installation-month for each major product group, the number of units remaining under warranty, and the remaining number of months each unit will be under warranty. We have a history of new product introductions and enhancements to existing products, which may result in unforeseen issues that increase our warranty costs. While such expenses have historically been within expectations, we cannot guarantee this will continue in the future. Income Taxes —We account for income taxes using the asset and liability method in accordance with ASC Topic 740, Income Taxes . The objectives of accounting for income taxes under ASC Topic 740 are to recognize the amount of taxes payable or refundable for the current year and to recognize the deferred tax assets and liabilities that relate to tax consequences in future years, which result from differences between the respective tax basis of assets and liabilities and their financial reporting amounts and tax attribute carryforwards. Deferred tax assets and liabilities are measured using the enacted tax rates in effect for the year in which the respective temporary differences or tax credit carryforwards are expected to be recovered or settled. We review our deferred tax assets on a regular basis to evaluate their recoverability based upon expected future reversals of deferred tax assets and liabilities, projections of future taxable income, and tax planning strategies that we might employ to utilize such assets, including net operating loss carryforwards. The realization of deferred tax assets is contingent upon the generation of future taxable income and other restrictions that may exist under the tax laws of the jurisdiction in which a deferred tax asset exists. We assess the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit the use of existing deferred tax assets. Management's evaluation begins with a jurisdictional review of cumulative gains or losses incurred over recent years. A significant piece of objective negative evidence exists when a jurisdiction has incurred cumulative losses over recent years. Such objective evidence limits the ability to consider other subjective evidence, such as our projections for future growth. Based on the positive and negative evidence for recoverability, we establish a valuation allowance against the net deferred tax assets of a taxing jurisdiction in which we operate unless it is “more likely than not” that we will recover such assets through the above means. We recognize tax benefits related to uncertain tax positions only if it is more likely than not that the tax position will be sustained upon examination by taxing authorities. For those positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. In the ordinary course of business, we are examined by various federal, state, and foreign tax authorities. We regularly assess the potential outcomes of these examinations and any future examinations for the current or prior years in determining the adequacy of our provision for income taxes. See Note 11, “Income Taxes” for further information regarding income taxes. Earnings (Loss) Per Share ( “ EPS ” ) —Basic (loss) earnings per share is computed by dividing net (loss) 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 stock options, restricted stock, restricted stock units and market-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. Market-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 loss for the period presented, the diluted loss per share calculation does not include our potential common stock, as the inclusion of these shares in the calculation would have an anti-dilutive effect. A reconciliation of the number of common shares used in the calculation of basic and diluted EPS is presented in Note 14, “(Loss) Earnings Per Share.” Accounting for Stock-Based Compensation —We have two stock-based employee and director compensation plans, which are described more fully in Note 13, “Stock Compensation Plans.” We measure and record compensation expense using the applicable accounting guidance for share-based payments related to stock options, restricted stock, restricted stock units and market-based awards granted to our directors and employees. The fair value of stock options, including performance awards, without a market condition is estimated, at the date of grant, using the Black-Scholes option-valuation model. The fair value of restricted stock unit awards and stock options with a market condition is estimated, at the date of grant, using the Monte Carlo Simulation valuation model. 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. In valuing our stock options, significant judgment is required in determining the expected volatility of our common stock and the expected life that individuals will hold their stock options prior to exercising. Expected volatility for stock options is based on the historical and implied volatility of our own common stock while the volatility for our restricted stock units with a market condition is based on the historical volatility of our own stock and the stock of companies within our defined peer group. The expected life of stock options is derived from the historical actual term of option grants and an estimate of future exercises during the remaining contractual period of the option. While volatility and estimated life are assumptions that do not bear the risk of change subsequent to the grant date of stock options, these assumptions may be difficult to measure as they represent future expectations based on historical experience. Further, our expected volatility and expected life may change in the future, which could substantially change the grant-date fair value of future awards of stock options and, ultimately, the expense we record. The fair value of restricted stock and restricted stock units, including performance awards, without a market condition is estimated using the current market price of our common stock on the date of grant. We expense stock-based compensation for stock options, restricted stock, restricted stock units and performance awards over the requisite service period. For awards with only a service condition, we expense stock-based compensation using the straight-line method over the requisite service period for the entire award. For awards with both performance and service conditions, we expense the stock-based compensation on a straight-line basis over the requisite service period for each separately vesting portion of the award, taking into account the probability that we will satisfy the performance conditions. Furthermore, we expense awards with a market condition over the three-year vesting period regardless of the value that the award recipients ultimately receive. All income tax-related cash flows resulting from share-based payments are reported as operating activities in the statement of cash flows in the deferred income tax benefit line item. We elect to account for forfeitures related to the service condition-based awards as they occur. Concentration of Credit Risk —Financial instruments that expose us to concentrations of credit risk consist principally of operating demand deposit accounts. Our policy is to place our operating demand deposit accounts with high credit quality financial institutions, the balances of which at times may exceed federally insured limits. We continually monitor our banking relationships and believe we are not exposed to any significant credit risk on our operating demand deposit accounts. Estimates —The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 from those estimates. Impact of Recently Adopted Accounting Standards —In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13, and subsequent related amendments to ASU 2016-13, replace the existing incurred loss impairment model with an expected loss model that requires the use of forward-looking information to calculate credit loss estimates. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. These changes will result in earlier recognition of credit losses. We adopted ASU 2016-13 effective as of January 1, 2020, and the adoption of the new guidance did not have a material impact on our consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes which amends and aims to simplify accounting disclosure requirements regarding a number of topics including: intraperiod tax allocation, accounting for deferred taxes when there are changes in consolidation of certain investments, tax basis step up in an acquisition and the application of effective rate changes during interim periods, amongst other improvements. We adopted ASU 2019-12 effective as of January 1, 2021, and the adoption of the new guidance did not have a material impact on our consolidated financial statements. In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Asset and Contract Liabilities from Contracts with Customers which intends to simplify the accounting for acquired revenue contracts with customers in a business combination and to also remove inconsistencies in this topic related to recognition of an acquired contract liability and payment terms and their effect on subsequent revenue recognized by the acquirer. ASU No. 2021-08 allows an acquirer to recognize and measure contract assets and contract liabilities acquired in a business combination in a similar manner to how they are recorded on the acquiree's financial statements at book value. Early adoption is permitted and we early adopted ASU No. 2021-08 in the fourth quarter of 2021. As a result of the early adoption of ASU No.2021-08 we recorded the deferred revenue associated with the acquisition of Holobuilder at its book value of approximately $4.0 million. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | SUPPLEMENTAL CASH FLOW INFORMATION Selected cash payments and non-cash activities were as follows: Years ended December 31, 2021 2020 2019 Supplemental cash flow information: Cash paid for interest $ 1,186 $ 21 $ 6 Cash paid for income taxes $ 4,365 $ 3,409 $ 5,498 Supplemental noncash investing and financing activities: Transfer of service and sales demonstration inventory to fixed assets $ 2,226 $ 1,688 $ 3,044 Assumption of contingent consideration from acquisition $ — $ 980 $ — Purchases of Property, plant, equipment and Intangibles accrued but not paid $ 754 $ — $ — |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | REVENUES The following tables present our revenues by sales type as presented in our consolidated statements of operations disaggregated by the timing of transfer of goods or services (in thousands): Years ended December 31, 2021 2020 2019 Product Sales Products transferred to a customer at a point in time $ 234,188 $ 205,849 $ 277,841 Products transferred to a customer over time 16,915 12,738 11,838 $ 251,103 $ 218,587 $ 289,679 Years ended December 31, 2021 2020 2019 Service Sales Service transferred to a customer at a point in time $ 39,559 $ 36,732 $ 48,593 Service transferred to a customer over time 47,152 48,449 43,493 $ 86,711 $ 85,181 $ 92,086 The following table presents our revenues disaggregated by geography, based on the billing addresses of our customers (in thousands): Years ended December 31, 2021 2020 2019 Total Sales to External Customers Americas (1) $ 140,633 $ 128,826 $ 165,756 EMEA (1) 104,350 91,390 122,279 APAC (1) 92,831 83,552 93,730 $ 337,814 $ 303,768 $ 381,765 (1) Regions represent North America and South America (Americas); Europe, the Middle East, and Africa (EMEA); and the Asia-Pacific (APAC). We capitalize commission expenses related to deliverables transferred to a customer over time and amortize such costs ratably over the term of the contract. As of December 31, 2021, the deferred cost asset related to deferred commissions was approximately $3.5 million. For classification purposes, $2.3 million and $1.2 million are comprised within the Prepaid expenses and other current assets and Other long-term assets, respectively, on our consolidated balance sheet as of December 31, 2021. As of December 31, 2020, the deferred cost asset related to deferred commissions was approximately $4.1 million. For classification purposes, $2.6 million and $1.5 million are comprised within the Prepaid expenses and other current assets and Other long-term assets, respectively, on our consolidated balance sheet as of December 31, 2020. The unearned service revenue liabilities reported on our consolidated balance sheets reflect the contract liabilities to satisfy the remaining performance obligations for extended warranties, subscription based software and software maintenance. The current portion of unearned service revenues on our consolidated balance sheets is what we expect to recognize to revenue within twelve months after the applicable balance sheet date relating to extended warranty, subscription based software and software maintenance contract liabilities. The Unearned service revenues - less current portion on our 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, subscription based software and software maintenance contract liabilities. Customer deposits on our consolidated balance sheets represent customer prepayments on contracts for performance obligations that we must satisfy in the future to recognize the related contract revenue. These amounts are generally related to performance obligations which are delivered in less than 12 months. During the year ended December 31, 2021, we recognized $34.4 million of revenue that was deferred on our consolidated balance sheet as of December 31, 2020. During the year ended December 31, 2020, we recognized $35.2 million of revenue that was deferred on our consolidated balance sheet as of December 31, 2019. The nature of certain of our contracts gives rise to variable consideration, primarily related to an allowance for sales returns. We are required to estimate the contract asset related to sales returns and record a corresponding adjustment to Cost of Sales. Our allowance for sales returns for December 31, 2021 and December 31, 2020 was approximately $0.2 million and $0.3 million, respectively. Shipping and handling fees billed to customers in a sales transaction are recorded in Product Sales and shipping and handling costs incurred are recorded in Cost of Sales. We exclude from Sales any value-added, sales and other taxes that we collect concurrently with revenue-producing activities. |
Allowance for Credit Losses
Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Allowance for Credit Losses | ALLOWANCE FOR CREDIT LOSSES Activity in the allowance for credit losses was as follows: Years ended December 31, 2021 2020 2019 Balance, beginning of year $ 3,888 $ 3,449 $ 1,748 Provision (net of recovery) 176 440 2,090 Amounts written off, net of recoveries (1,833) (1) (389) Balance, end of year $ 2,231 $ 3,888 $ 3,449 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIESInventories are stated at the lower of cost or net realizable value using the first-in first-out method. We have three principal categories of inventory: 1) manufactured product to be sold; 2) sales demonstration inventory - completed product used to support our sales force, for demonstrations and held for sale; and 3) service inventory - completed product and parts used to support our service department and held for sale. Shipping and handling costs are classified as a component of cost of sales in our consolidated statements of operations. Sales demonstration inventory is held by our sales representatives for up to three years, at which time it is refurbished and transferred to finished goods as used equipment, stated at the lower of cost or net realizable value. We expect these refurbished units to remain in finished goods inventory and to be sold within 12 months at prices that 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: December 31, 2021 December 31, 2020 Raw materials $ 34,617 $ 29,955 Finished goods 18,528 17,436 Inventories, net $ 53,145 $ 47,391 Service and sales demonstration inventory, net $ 30,554 $ 31,831 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | GOODWILL We had approximately $82.1 million and $57.5 million of goodwill as of December 31, 2021 and 2020, net of accumulated impairments of $35.2 million as of December 31, 2021 and 2020, respectively. Changes in these balances are shown below: (in thousands) December 31, 2021 December 31, 2020 Goodwill, beginning $ 57,541 $ 49,704 Recognized goodwill 26,723 5,467 Foreign currency translation (2,168) 2,370 Goodwill, ending $ 82,096 $ 57,541 We test goodwill for impairment annually on December 31 of each reporting year or more frequently if an event occurs or circumstances would indicate that it is more likely than not the fair value of the reporting unit is less than the carrying value. We performed our annual qualitative test of goodwill during 2021 as of December 31, 2021, and recorded no impairment expense for the year ended December 31, 2021 and we performed an annual quantitative test of goodwill during 2020 as of December 31, 2020, and recorded no impairment expense for the year ended December 31, 2020. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | INTANGIBLE ASSETS Intangible assets consist of the following: As of December 31, 2021 Carrying Value Accumulated Net Intangible Amortizable intangible assets: Product technology $ 20,944 $ 12,337 $ 8,607 Patents and trademarks 15,535 8,294 7,241 Customer relationships 9,892 4,811 5,081 Other 10,369 5,682 4,687 Total $ 56,740 $ 31,124 $ 25,616 As of December 31, 2020 Carrying Value Accumulated Net Intangible Amortizable intangible assets: Product technology $ 14,625 $ 10,785 $ 3,840 Patents and trademarks 14,325 7,495 6,830 Customer relationships 6,541 4,002 2,539 Other 5,265 5,173 92 Total $ 40,756 $ 27,455 $ 13,301 Amortization expense was $4.2 million, $3.4 million and $5.6 million in 2021, 2020 and 2019, respectively. The estimated amortization expense for each of the years 2022 through 2026 and thereafter is as follows: Years ending December 31, Amount 2022 $ 3,571 2023 3,175 2024 2,767 2025 2,642 2026 1,590 Thereafter 11,871 $ 25,616 |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | ACCRUED LIABILITIES Accrued liabilities consist of the following: As of December 31, 2021 2020 Accrued compensation and benefits $ 15,723 $ 17,457 Accrued restructuring costs 3,919 2,347 Accrued warranties 1,880 1,683 Professional and legal fees 2,053 1,810 Taxes other than income 3,674 5,013 General services administration contract contingent liability (see Note 12) — 12,325 Other accrued liabilities 959 1,958 $ 28,208 $ 42,593 Activity related to accrued warranties was as follows: Years ended December 31, 2021 2020 2019 Balance, beginning of year $ 1,683 $ 2,090 $ 2,571 Provision for warranty expense 2,851 2,727 3,600 Fulfillment of warranty obligations (2,654) (3,134) (4,081) Balance, end of year $ 1,880 $ 1,683 $ 2,090 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The guidance on fair value measurements and disclosures defines fair value, establishes a framework for measuring fair value, and requires enhanced disclosures about assets and liabilities measured at fair value. Fair value is defined as the price at which an asset could be exchanged in a current transaction between knowledgeable, willing parties. A liability’s fair value is defined as the amount that would be paid to transfer the liability to a new obligor, not the amount that would be paid to settle the liability with the creditor. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are used to determine fair value. These models employ valuation techniques that involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instruments’ complexity. Assets and liabilities recorded at fair value on a recurring basis in our consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels, defined by the guidance on fair value measurements, are directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities and are as follows: Level 1 - Valuation is based upon quoted market prices for identical instruments traded in active markets. Level 2 - Valuation is based on quoted market prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 - Valuation is generated from model-based techniques that use significant assumptions not observable in the market. Valuation techniques include use of discounted cash flow models and similar techniques. 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. December 31, 2021 Level 1 Level 2 Level 3 Liabilities: Contingent consideration (1) $ — $ — $ 1,028 Total $ — $ — $ 1,028 December 31, 2020 Level 1 Level 2 Level 3 Liabilities: Contingent consideration (1) $ — $ — $ 1,056 Total $ — $ — $ 1,056 (1) Contingent consideration liability represents arrangements to pay the former owners of certain companies we acquired based on the attainment of future product release milestones and is reported in other long-term liabilities. We use a probability-weighted discounted cash flow model to estimate the fair value of contingent consideration liabilities. These probability weightings are developed internally and assessed on a quarterly basis. The remaining undiscounted maximum payment under these arrangements was $1.1 million as of December 31, 2021. We expect to make payments earned by former owners under these arrangements on August 31, 2023. |
Other Expense (Income), Net
Other Expense (Income), Net | 12 Months Ended |
Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Other Expense (Income), Net | OTHER EXPENSE (INCOME), NET Other expense (income), net consists of the following: Years ended December 31, 2021 2020 2019 Foreign exchange transaction losses $ 560 $ 1,680 $ 1,211 Present4D impairment — — 2,152 Contingent consideration fair value adjustment — — (1,562) Other (490) (1,249) 512 Total other expense, net $ 70 $ 431 $ 2,313 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Income (loss) before income tax (benefit) expense consists of the following: Years ended December 31, 2021 2020 2019 Domestic $ (13,202) $ (33,991) $ (40,963) Foreign 4,641 3,218 (20,051) (Loss) Income before income taxes $ (8,561) $ (30,773) $ (61,014) The components of the income tax expense (benefit) for income taxes are as follows: Years ended December 31, 2021 2020 2019 Current: Federal $ 211 $ (3,557) $ 3,215 State 114 169 400 Foreign 6,372 (2,032) 3,809 Current income tax expense (benefit) 6,697 (5,420) 7,424 Deferred: Federal 15,464 (2,886) (7,630) State 6,418 (2,937) (1,667) Foreign 2,824 (20,159) 3,006 Deferred income tax expense (benefit) 24,706 (25,982) (6,291) Income tax expense (benefit) $ 31,403 $ (31,402) $ 1,133 During fiscal year 2020, we completed intra-entity transfers of certain intellectual property rights (“IP Rights”) which resulted in the Company establishing deferred tax assets and related tax benefits of $19.2 million, based on fair value of the IP rights transferred in December 2020. The determination of the fair value involves significant judgment on future revenue growth, operating profit and discount rates. Unforeseen events and circumstances may occur that could affect either the accuracy or validity of such assumptions, estimates or actual results Reconciliations of the income tax expense at the U.S. federal statutory income tax rate compared to our actual income tax expense (benefit) are summarized below: Years ended December 31, 2021 2020 2019 Tax expense at statutory rate $ (1,798) $ (6,462) $ (12,812) State income taxes, net of federal benefit 106 (1,400) (1,564) Foreign tax rate difference 303 1,999 (1,954) Change in valuation allowance 26,475 (3,736) 8,485 Impact of intra-entity IP transfers 231 (19,227) — Prepaid tax on intercompany profit 3,390 — — Impact of permanent differences of non-deductible cost 1,658 (602) 1,550 Withholding/other foreign taxes 838 — — Research and development credit (737) (662) (753) Global intangible low-taxed income (“GILTI”) 763 — 1,795 Foreign currency gain/loss 594 — — Provision to return adjustments & deferred adjustments 313 (572) 356 Change in enacted tax rates (306) (1,138) 359 Equity based compensation (245) (42) (25) Uncertain tax positions (185) — — Intangible & goodwill impairment — — 4,999 Other 3 440 697 Income tax expense (benefit) $ 31,403 $ (31,402) $ 1,133 The components of our net deferred income tax assets and liabilities are as follows: As of December 31, 2021 2020 Net deferred income tax asset - Non-current Warranty cost $ 305 $ 310 Inventory reserve 2,287 5,234 Unearned service revenue 9,913 11,607 Employee stock options 3,282 3,271 Tax credits 3,688 2,828 Loss carryforwards 18,487 8,530 Depreciation 1,295 1,419 Other, net 1,402 735 Intangibles & goodwill 14,400 19,295 Lease liability 4,749 6,986 Total deferred tax assets 59,808 60,215 Valuation allowance (35,148) (6,916) Total deferred tax assets net of valuation allowance 24,660 53,299 Net deferred income tax liability - Non-current Operating lease right-of-use asset (4,441) (6,636) Total deferred tax liabilities (4,441) (6,636) Net deferred tax assets $ 20,219 $ 46,663 Our domestic entities had a net deferred tax liability in the amount of $0.4 million, and a deferred tax asset of $21.4 million as of December 31, 2021 and December 31, 2020, respectively. Our foreign entities had net deferred tax assets in the amount of $20.6 million and $25.3 million as of December 31, 2021, and December 31, 2020, respectively. At December 31, 2021 we had U.S. federal and state net operating loss carryforwards of $34.4 million and $67.6 million, respectively. $31.0 million of our federal net operating losses carryforward indefinitely while a portion of our federal and state net operating loss carryforwards will begin to expire in 2035 and 2029, respectively. We also had federal and state R&D credit carryforwards of $3.2 million and $0.4 million, respectively. The federal credits will begin to expire in 2039 and our state credits carryforward indefinitely. Foreign net operating losses are $40.5 million, the majority of which can be carried forward indefinitely. At December 31, 2021, our foreign subsidiaries had deferred tax assets primarily relating to Intangibles of $17.3 million and net operating losses of $7.8 million, the majority of which can be carried forward indefinitely. At December 31, 2020, our foreign subsidiaries had deferred tax assets primarily relating to Intangibles of $19.4 million and net operating losses of $7.1 million, the majority of which can be carried forward indefinitely. The realization of deferred tax assets is contingent upon the generation of future taxable income and other restrictions that may exist under the tax laws of the jurisdiction in which a deferred tax asset exists. We assess the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit the use of existing deferred tax assets. Management's evaluation begins with a jurisdictional review of cumulative gains or losses incurred over recent years. A significant piece of objective negative evidence exists when a jurisdiction has incurred cumulative losses over recent years. Such objective evidence limits the ability to consider other subjective evidence, such as our projections for future growth. Based on the positive and negative evidence for recoverability, we establish a valuation allowance against the net deferred tax assets of a taxing jurisdiction in which we operate unless it is “more likely than not” that we will recover such assets through the above means. We have valuation allowances of $35.1 million and $6.9 million for the years December 31, 2021 and 2020, respectively. The net change in the total valuation allowance for each of the years ended December 31, 2021, 2020 and 2019 was a $26.5 million increase, $3.7 million decrease and $8.5 million increase, respectively. The increase in the valuation allowance for the year ended December 31, 2021 primarily relates to recording valuation allowance against our net U.S. and Singapore deferred tax assets. On December 22, 2017, the United States enacted the U.S. Tax Cuts and Jobs Act, resulting in significant modifications to existing law, which included a transition tax on the mandatory deemed repatriation of foreign earnings. As a result of the U.S. Tax Cuts and Jobs Act, the Company can repatriate foreign earnings and profits to the U.S. with minimal U.S. income tax consequences, other than the transition tax and GILTI tax. The Company reinvested a large portion of its undistributed foreign earnings and profits in acquisitions and other investments and intends to bring back a portion of foreign cash in certain jurisdictions where the Company will not be subject to local withholding taxes and which were subject already to transition tax and GILTI tax. At December 31, 2021, we have not provided for approximately $0.9 million of withholding tax on foreign earnings and profits in certain jurisdictions that we intend to invest these earnings indefinitely. Significant judgment is required in determining our worldwide provision for income taxes. In the ordinary course of a global business, there are many transactions for which the ultimate tax outcome is uncertain. We review our tax contingencies on a regular basis and make appropriate accruals as necessary. As of December 31, 2021, 2020 and 2019, our unrecognized tax benefits totaled $1.7 million, $1.9 million and $1.9 million, respectively, which are included in Income taxes payable and offsetting an associated deferred tax asset. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Years ended December 31, 2021 2020 2019 Balance at January 1 $ 1,873 $ 1,924 $ 324 Additions based on tax positions related to the current year 53 273 314 Additions for tax positions of prior years — — 1,675 Lapse of statute of limitations (262) (324) (389) Balance at December 31 $ 1,664 $ 1,873 $ 1,924 We file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. The table below summarizes the open tax years and ongoing tax examinations in major jurisdictions as of December 31, 2021. Jurisdiction Open Years Examination United States - Federal Income Tax 2018-2021 N/A United States - various states 2017-2021 N/A Germany 2013-2021 2013-2014 Switzerland 2019-2021 N/A Singapore 2017-2021 N/A three four |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES 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 December 31, 2021, we had approximately $40.0 million in purchase commitments that are expected to be delivered within the next 12 months. To ensure adequate component availability, as of December 31, 2021, we also had $6.6 million in long-term commitments for purchases to be delivered after 12 months. Legal Proceedings — We are not involved in any legal proceedings other than routine litigation arising in the normal course of business, none of which we believe will have a material adverse effect on our business, financial condition or results of operations. U.S. Government Contracting Matter — We have sold our products and related services to the U.S. Government (the “Government”) under General Services Administration (“GSA”) Federal Supply Schedule contracts (the “GSA Contracts”) since 2002. Each GSA Contract is subject to extensive legal and regulatory requirements and includes, among other provisions, a price reduction clause (the “Price Reduction Clause”), which generally requires us to reduce the prices billed to the Government under the GSA Contracts to correspond to the lowest prices billed to certain benchmark customers. Late in the fourth quarter of 2018, during an internal review we preliminarily determined that certain of our pricing practices may have resulted in the Government being overcharged under the Price Reduction Clauses of the GSA Contracts (the “GSA Matter”). As a result, we performed remediation efforts, including but not limited to, the identification of additional controls and procedures to ensure future compliance with the pricing and other requirements of the GSA Contracts. We also retained outside legal counsel and forensic accountants to assist with these efforts and to conduct a comprehensive review of our pricing and other practices under the GSA Contracts (the “Review”). On February 14, 2019, we reported the GSA Matter to the GSA and its Office of Inspector General. Effective as of February 25, 2021, as a result of the review, we entered into a settlement agreement with the GSA. Pursuant to the settlement agreement, we agreed to, among other things, pay to the GSA $12.3 million in full and final satisfaction of any and all claims, causes of actions, appeals and the like, including damages, costs, attorney's fees and interest arising under or related to the GSA Matter. As of March 31, 2021, we settled and paid the full $12.3 million and no longer have any outstanding liability related to this matter. |
Stock Compensation Plans
Stock Compensation Plans | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock Compensation Plans | STOCK COMPENSATION PLANS We have two compensation plan that provides for the granting of stock options and other share-based awards to key employees and non-employee members of the Board of Directors. The 2009 Equity Incentive Plan (“2009 Plan”), and the 2014 Equity Incentive Plan (“2014 Plan”) provide for granting options, restricted stock, restricted stock units or stock appreciation rights to employees and non-employee directors. We were authorized to grant awards for up to 1,781,546 shares of common stock under the 2009 Plan, as well as any shares underlying awards outstanding under our 2004 Equity Incentive Plan (the “2004 Plan”) as of the effective date of the 2009 Plan that thereafter terminated or expired unexercised or were canceled, forfeited or lapsed for any reason. There were no options outstanding under the 2009 Plan at December 31, 2021. In May 2014, our shareholders approved the 2014 Plan authorizing us to grant awards for up to 1,974,543 shares of common stock, as well as any shares underlying awards outstanding under the 2004 Plan and 2009 Plan as of the effective date of the 2014 Plan that thereafter terminate or expire unexercised or are canceled, forfeited or lapse for any reason. 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 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. There were 44,524 options outstanding at December 31, 2021 under the 2014 Plan at exercise prices between $33.05 and $61.30. The options outstanding under the 2014 Plan have a 7-year term and generally vest over a 3-year period. 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 equal to $175,000 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 independent Chairman of the Board vest on the day prior to the following year’s annual meeting date, subject to a 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. Our non-employee directors also may elect to have their annual cash retainers and annual equity retainers paid in the form of deferred stock units pursuant to the 2014 Plan and the 2018 Non-Employee Director Deferred Compensation Plan. Each deferred stock unit represents the right to receive one share of our common stock upon the non-employee director's separation of service from the Company. We record compensation cost associated with our deferred stock units over the period of service. Annually, upon approval by our Compensation Committee, we grant stock-based awards, which historically have been in the form of stock options and/or restricted stock units, to certain employees. We also grant stock-based awards, which historically have been in the form of stock options and/or 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 without a market condition, (b) the Monte Carlo Simulation valuation model in the case of market-based restricted stock units with a market condition, or (c) the Black-Scholes option valuation model in the case of stock options. For the stock-based awards granted in 2021 and 2020, the time-based restricted stock units vest in three equal annual installments beginning one year after the grant date. The market-based restricted stock unit awards vest at the end of the 3-year performance period if the applicable market-based measure is achieved. The related stock-based compensation expense will be recognized over the requisite service period, taking into account the probability that we will satisfy the performance measure. The market-based restricted stock units granted in 2021 will be earned and will vest based upon our total shareholder return (“TSR”) relative to the TSR attained by companies within our defined benchmark group, the Russell 2000 Growth Index. Due to the TSR presence in these market-based restricted stock units, the fair value of these awards was determined 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 Monte Carlo Simulation 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 market-based restricted stock units that were granted during 2021 and 2020 valued using the Monte Carlo Simulation valuation model was $145.67 and $80.38, respectively. For market-based restricted stock units granted during 2021 and 2020 valued using the Monte Carlo Simulation valuation model, we used the following assumptions: Year ended December 31 2021 2020 Risk-free interest rate 0.2 % 1.2 % Expected dividend yield — % — % Term 3 years 3 years Expected volatility 45.0 % 40.0 % Weighted-average expected volatility 45.0 % 40.0 % Historical information was the primary basis for the selection of the expected dividend yield and expected volatility. The risk-free interest rate was based on the yields of U.S. zero coupon issues and U.S. Treasury issues, with a term equal to the term of the award being valued. A summary of stock option activity and weighted average exercise prices follows: Options Weighted- Weighted-Average Aggregate Intrinsic Outstanding at January 1, 2021 155,048 $ 56.53 Granted — — Forfeited (6,701) 58.08 Exercised (103,823) 56.61 Outstanding at December 31, 2021 44,524 $ 56.11 1.5 $ 667 Options exercisable at December 31, 2021 44,524 $ 56.11 0.2 $ 667 The aggregate intrinsic value of stock options exercised during the years ended December 31, 2021, 2020, and 2019 was $3.0 million, $4.2 million and $3.4 million, respectively. The total fair value of stock options vested during the years ended December 31, 2021, 2020, and 2019 was $0.2 million, $0.8 million and $5.1 million, respectively. The following table summarizes the restricted stock and restricted stock unit activity and weighted-average grant date fair values for the year ended December 31, 2021: Shares Weighted-Average Non-vested at January 1, 2021 377,447 $ 60.92 Granted 168,573 100.66 Forfeited (36,288) 80.07 Vested (159,153) 57.73 Non-vested at December 31, 2021 350,579 $ 79.11 We recorded total stock-based compensation expense associated with our stock incentive plans of $11.5 million, $8.3 million and $11.1 million in 2021, 2020 and 2019, respectively. As of December 31, 2021, there was $16.1 million in 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 1.83. The following table summarizes total stock-based compensation expense for each of the line items on our consolidated statement of operations: Years ended December 31, 2021 2020 2019 Cost of Sales Product $ 566 $ 356 $ 628 Service 69 346 373 Total cost of sales $ 635 $ 702 $ 1,001 Operating Expenses Selling, general and administrative $ 8,985 $ 6,327 $ 8,786 Research and development 1,836 1,285 1,282 Total operating expenses $ 10,821 $ 7,612 $ 10,068 |
(Loss) Earnings Per Share
(Loss) Earnings Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
(Loss) Earnings Per Share | (LOSS) 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 stock options, restricted stock units and market-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. Market-based awards are included in the computation of (diluted earnings per share only to the extent that the underlying 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 for the period presented, the diluted loss per share calculation does not include our potential common stock, as the inclusion of these shares in the calculation would have an anti-dilutive effect. A reconciliation of the number of common shares used in the calculation of basic and diluted earnings per share is presented below: Years Ended December 31, 2021 2020 2019 Shares Per-Share Shares Per-Share Shares Per-Share Basic earnings per share 18,187,946 $ (2.20) 17,769,958 $ 0.04 17,383,415 $ (3.58) Effect of dilutive securities — — 156,366 — — — Diluted earnings per share 18,187,946 — $ (2.20) 17,926,324 $ 0.04 17,383,415 $ (3.58) Securities excluded from the determination of weighted average shares for the calculation of diluted earnings per share, as they were potentially antidilutive 395,387 — 886,274 |
Employee Retirement Benefit Pla
Employee Retirement Benefit Plan | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Employee Retirement Benefit Plan | EMPLOYEE RETIREMENT BENEFIT PLANWe maintain a 401(k) defined contribution retirement plan for our eligible U.S. employees. Costs charged to operations in connection with the 401(k) plan during 2021, 2020 and 2019 aggregated to $1.8 million, $1.8 million, and $2.2 million, respectively. |
Geographic Information
Geographic Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Geographic Information | GEOGRAPHIC INFORMATIONAs part of our new strategic plan, and based on the recommendation of our CEO, who is also our Chief Operating Decision Maker (“CODM”), in the fourth quarter of 2019, we eliminated our vertical structure and began reorganizing the Company into a functional structure. Our executive leadership team is now comprised of functional leaders in areas such as sales, marketing, operations, research and development and general and administrative, and resources are allocated to each function at a consolidated unit level. We no longer have separate business units, or segment managers or vertical leaders who report to the CODM with respect to operations, operating results or planning for levels or components below the total Company level. Instead, our CODM now allocates resources and evaluates performance on a company-wide basis. Based on these changes, commencing with the fourth quarter of 2019, we are now reporting as one reporting segment that develops, manufactures, markets, supports and sells CAD-based quality assurance products integrated with CAD-based inspection and statistical process control software and 3D documentation systems. Our reporting segment sells into a variety of end markets, including automotive, aerospace, metal and machine fabrication, architecture, engineering, construction and public safety. These activities represent more than 99% of consolidated sales. Total sales to external customers is based upon the geographic location of the customer. For the Years Ended December 31, 2021 2020 2019 Total sales to external customers United States and Canada $ 127,661 $ 119,769 $ 151,646 Americas-Other 12,973 9,057 14,110 Germany 48,772 46,166 52,083 Europe-Other 55,577 45,224 70,196 Japan 25,997 4,998 33,361 China 40,808 31,748 32,934 Asia-Other 26,026 46,806 27,435 $ 337,814 $ 303,768 $ 381,765 Long-lived assets consist primarily of property, plant, and equipment, goodwill, and intangible assets, and are attributed to the geographic area in which they are located or originated, as applicable. As of December 31, 2021 2020 2019 Long-Lived Assets United States $ 82,845 $ 42,729 $ 45,225 Americas-Other 9,794 10,415 10,889 Germany 24,415 26,671 26,295 Europe-Other 10,063 10,966 4,984 Japan 1,039 1,192 1,423 Asia-Other 1,750 1,960 2,313 $ 129,906 $ 93,933 $ 91,129 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | LEASES We have operating and finance leases for manufacturing facilities, corporate offices, research and development facilities, sales and training facilities, vehicles, and certain equipment under which we assume the role of lessee. We do not lease assets as a lessor. Our leases have remaining lease terms of less than one year to approximately ten years, some of which include options to extend the leases for up to fifteen years, and some of which include options to terminate the leases within three months. We do not participate in any material subleasing. We determine if an arrangement is a lease at inception. Operating leases are included in Operating lease right-of-use (“ROU”) asset, Lease liability, and Lease liability - less current portion in our consolidated balance sheets. Finance leases are included in Property and equipment, net, Lease liability, and Lease liability - less current portion in our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized on the commencement date of the lease based on the present value of lease payments over the lease term. Variable lease payments that depend on an index or rate include the variable portion when calculating ROU assets and lease liabilities. Variable lease payments that do not depend on an index or rate are expensed as incurred. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available on the commencement date of the lease to determine the present value of lease payments. We use the implicit rate when readily determinable. The operating lease ROU assets also include any lease payments made and lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option at the time the lease is commenced. Lease expense for lease payments is recognized on a straight-line basis over the lease term. While we have lease agreements with lease and non-lease components, we account for the lease and non-lease components as a single lease component. The components of lease expense were as follows: Year Ended Year Ended Operating lease cost $ 7,805 $ 8,506 Finance lease cost: Amortization of ROU assets $ 295 $ 307 Interest on lease liabilities $ 20 $ 29 Total finance lease cost $ 315 $ 336 We recognize lease payments made for short-term leases where terms are 12 months or less as the payments are incurred. Our short-term lease cost for the year ended December 31, 2021 and December 31, 2020 was $0.1 million and $0.1 million respectively. Supplemental balance sheet information related to leases was as follows: As of As of December 31, 2021 December 31, 2020 Operating leases: Operating lease right-of-use asset $ 22,543 $ 26,107 Current operating lease liability $ 5,601 $ 5,557 Operating lease liability - less current portion 18,538 21,985 Total operating lease liability $ 24,139 $ 27,542 Finance leases: Property and equipment, at cost $ 1,380 $ 1,813 Accumulated depreciation (1,222) (1,415) Property and equipment, net $ 158 $ 398 Current finance lease liability $ 137 $ 278 Finance lease liability - less current portion 110 146 Total finance lease liability $ 247 $ 424 Weighted Average Remaining Lease Term (in years): Operating leases 5.69 6.55 Finance leases 2.12 1.93 Weighted Average Discount Rate: Operating leases 5.67 % 5.66 % Finance leases 5.02 % 5.07 % Supplemental cash flow information related to leases was as follows: Year Ended Year Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 7,860 $ 8,272 Operating cash flows from finance leases $ 20 $ 29 Financing cash flows from finance leases $ 296 $ 309 ROU assets obtained in exchange for lease obligations: Operating leases $ 1,210 $ 13,611 Maturities of lease liabilities are as follows: Year Ending December 31, Operating leases Finance leases 2022 $ 6,795 $ 146 2023 5,664 68 2024 4,628 40 2025 3,219 5 2026 2,305 1 Thereafter 5,794 — Total lease payments $ 28,405 $ 260 Less imputed interest (4,266) (13) Total $ 24,139 $ 247 |
Leases | LEASES We have operating and finance leases for manufacturing facilities, corporate offices, research and development facilities, sales and training facilities, vehicles, and certain equipment under which we assume the role of lessee. We do not lease assets as a lessor. Our leases have remaining lease terms of less than one year to approximately ten years, some of which include options to extend the leases for up to fifteen years, and some of which include options to terminate the leases within three months. We do not participate in any material subleasing. We determine if an arrangement is a lease at inception. Operating leases are included in Operating lease right-of-use (“ROU”) asset, Lease liability, and Lease liability - less current portion in our consolidated balance sheets. Finance leases are included in Property and equipment, net, Lease liability, and Lease liability - less current portion in our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized on the commencement date of the lease based on the present value of lease payments over the lease term. Variable lease payments that depend on an index or rate include the variable portion when calculating ROU assets and lease liabilities. Variable lease payments that do not depend on an index or rate are expensed as incurred. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available on the commencement date of the lease to determine the present value of lease payments. We use the implicit rate when readily determinable. The operating lease ROU assets also include any lease payments made and lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option at the time the lease is commenced. Lease expense for lease payments is recognized on a straight-line basis over the lease term. While we have lease agreements with lease and non-lease components, we account for the lease and non-lease components as a single lease component. The components of lease expense were as follows: Year Ended Year Ended Operating lease cost $ 7,805 $ 8,506 Finance lease cost: Amortization of ROU assets $ 295 $ 307 Interest on lease liabilities $ 20 $ 29 Total finance lease cost $ 315 $ 336 We recognize lease payments made for short-term leases where terms are 12 months or less as the payments are incurred. Our short-term lease cost for the year ended December 31, 2021 and December 31, 2020 was $0.1 million and $0.1 million respectively. Supplemental balance sheet information related to leases was as follows: As of As of December 31, 2021 December 31, 2020 Operating leases: Operating lease right-of-use asset $ 22,543 $ 26,107 Current operating lease liability $ 5,601 $ 5,557 Operating lease liability - less current portion 18,538 21,985 Total operating lease liability $ 24,139 $ 27,542 Finance leases: Property and equipment, at cost $ 1,380 $ 1,813 Accumulated depreciation (1,222) (1,415) Property and equipment, net $ 158 $ 398 Current finance lease liability $ 137 $ 278 Finance lease liability - less current portion 110 146 Total finance lease liability $ 247 $ 424 Weighted Average Remaining Lease Term (in years): Operating leases 5.69 6.55 Finance leases 2.12 1.93 Weighted Average Discount Rate: Operating leases 5.67 % 5.66 % Finance leases 5.02 % 5.07 % Supplemental cash flow information related to leases was as follows: Year Ended Year Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 7,860 $ 8,272 Operating cash flows from finance leases $ 20 $ 29 Financing cash flows from finance leases $ 296 $ 309 ROU assets obtained in exchange for lease obligations: Operating leases $ 1,210 $ 13,611 Maturities of lease liabilities are as follows: Year Ending December 31, Operating leases Finance leases 2022 $ 6,795 $ 146 2023 5,664 68 2024 4,628 40 2025 3,219 5 2026 2,305 1 Thereafter 5,794 — Total lease payments $ 28,405 $ 260 Less imputed interest (4,266) (13) Total $ 24,139 $ 247 |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | BUSINESS COMBINATIONS On June 4, 2021, we acquired all of the outstanding shares of Holobuilder, Inc. (“Holobuilder”), a company focused on 3D photogrammetry-based technology for a purchase price of $33.8 million paid, net of cash acquired and paid with cash on hand. We believe this acquisition enables the Company to provide reality-capture photo documentation and added remote access capability for industries such as construction management which further expand the Company's Digital Twin solution portfolio. The results of Holobuilder’s operations as of and after the date of acquisition have been included in our consolidated financial statements as of December 31, 2021. The acquisition of Holobuilder constitutes a business combination as defined by ASC Topic 805, Business Combinations . Accordingly, the assets acquired and liabilities assumed were recorded at their fair values on the date of acquisition with the exception of deferred revenue which is recorded at book value. The purchase price allocations below represent our preliminary determination of the fair value of the assets acquired and liabilities assumed for the 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 the acquisition: Fair Value (Final) Tangible assets acquired: Accounts receivable $ 375 Property, plant and equipment, net 46 Other assets 7 Total assets acquired 428 Liabilities assumed: Accounts payable and accrued liabilities (55) Deferred revenue (3,966) Total liabilities assumed (4021) Intangible assets 10,670 Net assets acquired 7,077 — Goodwill 26,723 Purchase price paid, net of cash acquired $ 33,800 The goodwill arising from the acquisition consists largely of the expected synergies from combining operations as well as the value of the workforce. This goodwill is not tax deductible. 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 $0.5 million in acquisition or integration costs for the Holobuilder acquisition. Pro forma financial results for Holobuilder has not been presented because the effect of this transaction was not material to our consolidated financial results. Following are the details of the purchase price allocated to the intangible assets acquired for the Holobuilder acquisition: Amount Weighted Average Life (Years) Brand $ 370 3 Technology 6,800 5 Customer relationships 3,500 12 Fair value of intangible assets acquired $ 10,670 7 |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | RESTRUCTURING In the first quarter of 2020, our Board of Directors approved a global restructuring plan (the “Restructuring Plan”), which is intended to support our strategic plan in an effort to improve operating performance and ensure that we are appropriately structured and resourced to deliver increased and sustainable value to our shareholders and customers. Key activities under the Restructuring Plan include a continued focus on efficiency and cost-saving efforts, which includes decreasing total headcount by approximately 500 employees upon the completion of the Restructuring Plan. These activities are expected to be substantially completed by the second quarter of 2022. Pre-tax charges of approximately $49 million were recorded in the fourth quarter of 2019 in connection with the implementation of our new strategic plan and included the following: • $21.2 million impairment of goodwill; • $12.8 million charge, increasing our reserve for excess and obsolete inventory; • $10.5 million impairment of intangible assets associated with recent acquisitions; • $1.4 million impairment of intangible assets related to capitalized patents; and • $3.4 million impairment of other assets and other charges. In connection with the Restructuring Plan, we recorded a pre-tax charge of approximately $15.8 million during the year ended December 31, 2020 primarily consisting of severance and related benefits, professional fees and other related charges and costs including a non-cash expense of $0.4 million related to the disposal of our Photonics business and 3D Design related assets. We paid approximately $13.1 million during the year ended December 31, 2020 primarily consisting of severance and related benefits, and had $2.3 million in accrual for future cash payments. We received $0.7 million in cash payments for the disposal of our Photonics business and 3D Design related assets in the second quarter of 2020. We have continued to make significant progress in executing the Restructuring Plan during 2021. We recorded a pre-tax charge of approximately $7.4 million and paid $5.8 million during the year ended December 31, 2021 primarily consisting of severance and related benefits, professional fees and other related charges and costs. On July 15, 2021, we entered into a manufacturing services agreement (the “Agreement”) with Sanmina Corporation (“Sanmina”), in connection with the Restructuring Plan. Under the Agreement, Sanmina will provide manufacturing services for the Company’s measurement device products currently manufactured by the Company at the Company’s Lake Mary, Florida, Exton, Pennsylvania, and Stuttgart, Germany manufacturing sites. A phased transition to a Sanmina production facility is expected to be completed by the end of the second quarter of 2022 as part of our cost reduction initiative. The Company expects to pay approximately $4 million in fiscal year 2022, primarily consisting of severance and related benefits. We continue to evaluate our key initiatives and execution of the Restructuring Plan, and expect to incur additional pre-tax charges in the range of $6 million to $10 million through the end of fiscal year 2022. Activity related to the accrued restructuring charge and cash payments during the year ended December 31, 2021 was as follows: Severance and other benefits Professional fees and other related charges Total Balance at December 31, 2020 $ 1,481 $ 866 $ 2,347 Additions charged to expense 5,197 2,171 7,368 Cash payments (3,236) (2,560) (5,796) Balance at December 31, 2021 $ 3,442 $ 477 $ 3,919 Balance at February 14, 2020 $ — $ — $ — Additions charged to expense 12,107 3,349 15,456 Cash payments (10,626) (2,483) (13,109) Balance at December 31, 2020 $ 1,481 $ 866 $ 2,347 |
Quarterly Result of Operations
Quarterly Result of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Result of Operations (Unaudited) | QUARTERLY RESULT OF OPERATIONS (UNAUDITED) Quarter ended March 31, June 30, September 30, December 31, Sales $ 76,331 $ 82,110 $ 79,169 $ 100,204 Gross profit 40,407 45,482 42,331 55,707 Net (loss) income (1) (3,221) (1,176) (3,855) (31,712) Net (loss) income per share: Basic $ (0.18) $ (0.06) $ (0.21) $ (1.74) Diluted $ (0.18) $ (0.06) $ (0.21) $ (1.74) (1) During 2021, in connection with the Restructuring Plan, we recorded a pre-tax charge of approximately $1.5 million during the first quarter 2021, $0.8 million during the second quarter, $1.4 million during the third quarter and $3.7 million during the fourth quarter primarily consisting of severance and related benefits, professional fees and other related charges. Quarter ended March 31, June 30, September 30, December 31, Sales (1) $ 79,515 $ 60,564 $ 70,736 $ 92,953 Gross profit (2) 43,873 28,896 36,298 50,780 Net income (loss) (14,823) (8,932) (3,024) 27,408 Net income (loss) per share: Basic $ (0.84) $ (0.50) $ (0.17) $ 1.53 Diluted $ (0.84) $ (0.50) $ (0.17) $ 1.52 (1) For the second quarter of 2020, sales were reduced by an incremental $0.6 million sales adjustment related to our GSA Contracts based on the results of the Review conducted by our outside legal counsel and forensic accountants. (2) During 2020, in connection with the Restructuring Plan, we recorded a pre-tax charge of approximately $13.7 million during the first quarter 2020, $0.6 million during the second quarter, $0.3 million during the third quarter and $1.2 million during the fourth quarter primarily consisting of severance and related benefits, professional fees and other related charges and costs including a non-cash expense of $0.4 million related to the disposal of our Photonics business and 3D Design related assets. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Our 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 | 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). |
Revenue Recognition, Product Warranty and Extended Warranty Contracts | Revenue is recognized as performance obligations within a contract are satisfied in an amount that reflects the consideration we expect to receive in exchange for satisfaction of those performance obligations, or standalone selling price. Our contracts with customers may include multiple performance obligations. For such arrangements, we allocate revenues to each performance obligation based on its relative standalone selling price. We make this allocation estimate utilizing data from the sale of our applicable products and services to customers separately in similar circumstances. Revenue related to our measurement and imaging equipment and related software is generally recognized upon shipment from our facilities or when delivered to the customer's location, as determined by the agreed upon shipping terms, at which time we are entitled to payment and title and control has passed to the customer. Fees billed to customers associated with the distribution of products are classified as revenue. We generally warrant our products against defects in design, materials and workmanship for one year. A provision for estimated future costs relating to warranty expense is recorded when products are shipped. To support our product lines, we also sell hardware service contracts which revenues are recognized on a straight-line basis over the term of the contract. Hardware service contracts generally extend between one month and three years. Costs relating to hardware service contracts are recognized as incurred. Revenue from sales of software only is recognized when no further significant production, modification or customization of the software is required and when the risks and rewards of ownership have passed to the customer. These software arrangements generally include short-term maintenance that is considered post-contract support (“PCS”), which is considered to be a separate performance obligation. We generally establish a standalone sales price for this PCS component based on our software maintenance contract renewals. Software maintenance contracts, when sold, are recognized on a straight-line basis over the term of the contract. Revenues resulting from sales of comprehensive support, training and technology consulting services are recognized as such services are performed and are deferred when billed in advance of the performance of services. Payment for products and services is collected within a short period of time following transfer of control or commencement of delivery of services, as applicable. Revenues are presented net of sales-related taxes. |
Cash and Cash Equivalents | We consider cash on hand and amounts on deposit with financial institutions with maturities of three months or less when purchased to be cash and cash equivalents. |
Accounts Receivable and Related Allowance for Credit Losses | Credit is extended to customers based on an evaluation of a customer’s financial condition and, generally, collateral is not required. Accounts receivable are generally due within 30 to 90 days and are stated at amounts due from customers, net of an allowance for credit losses. Accounts outstanding longer than the contractual payment terms are considered past due. We make judgments as to the collectability of accounts receivable based on historical trends and future expectations. Management estimates an allowance for credit losses, which adjusts gross trade accounts receivable to their net realizable value. The allowance for credit losses is based on an analysis of all receivables for possible impairment issues and historical write-off percentages. We write off accounts receivable when they become uncollectible, and payments subsequently received on such receivables are credited to the allowance for credit losses. We do not generally charge interest on past due receivables. |
Inventories | Inventories are stated at the lower of cost or net realizable value using the first-in first-out (“FIFO”) 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 and imaging devices utilized by sales representatives to present our products to customers. Management expects sales demonstration inventory to be held by our sales representatives for up to three years, at which time it is 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 be sold within 12 months at prices that produce reduced gross margins. Sales demonstration inventory remains classified as inventory, as it is available for sale and any required refurbishment prior to sale is minimal.Service inventory is typically 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 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 its remaining useful life, typically three years. |
Reserve for Excess and Obsolete Inventory | Because the value of inventory that will ultimately be realized cannot be known with exact certainty, we rely upon both past sales history and future sales forecasts to provide a basis for the determination of the reserve. Inventory is considered potentially obsolete if we have withdrawn those products from the market or had no sales of the product for the past 12 months and have no sales forecasted for the next 12 months. Inventory is considered potentially excess if the quantity on hand exceeds 12 months of expected remaining usage. The resulting potentially obsolete and excess parts are then reviewed to determine if a substitute usage or a future need exists. Items without an identified current or future usage are reserved in an amount equal to 100% of the FIFO cost of such inventory. Our products are subject to changes in technologies that may make certain of our products or their components obsolete or less competitive, which may increase our historical provisions to the reserve. We review these assumptions regularly for all of our inventories which include sales demonstration and service inventories. |
Property and Equipment | Property and equipment purchases exceeding one thousand dollars are capitalized and recorded at cost. |
Business Combinations | We allocate the fair value of purchase consideration to the assets acquired and liabilities assumed based generally on their fair values at the acquisition date. The excess of the fair value of purchase consideration over the fair value of these assets acquired and liabilities assumed is recorded as goodwill. When determining the fair values of assets acquired and liabilities assumed, management makes significant estimates and assumptions, especially with respect to intangible assets. Critical estimates in valuing intangible assets include, but are not limited to, expected future cash flows, which include consideration of future growth rates and margins, customer attrition rates, future changes in technology and brand awareness, loyalty and position, and discount rates. Critical estimates are also made in valuing contingent considerations, which represent arrangements to pay former owners based on the satisfaction of performance criteria. Fair value estimates are based on the assumptions management believes a market participant would use in pricing the asset or liability. Amounts recorded in a business combination may change during the measurement period, which is a period not to exceed one year from the date of acquisition, as additional information about conditions existing at the acquisition date becomes available. |
Goodwill and Intangible Assets | Goodwill represents the excess cost of a business acquisition over the fair value of the net assets acquired. We do not amortize goodwill; however, we perform an annual review each year, or more frequently if indicators of potential impairment exist (i.e., that it is more likely than not that the fair value of the reporting unit is less than the carrying value), to determine if the carrying value of the recorded goodwill or indefinite lived intangible assets is impaired. Each period, and for our single reporting unit, we can elect to perform a qualitative assessment to determine whether it is necessary to perform a quantitative goodwill impairment test. If we believe, as a result of our qualitative assessment, that it is not more likely than not that the fair value of our reporting unit containing goodwill is less than its carrying amount, then the quantitative goodwill impairment test is unnecessary. If we elect to bypass the qualitative assessment option, or if the qualitative assessment was performed and resulted in the Company being unable to conclude that it is not more likely than not that the fair value of a reporting unit containing goodwill is greater than its carrying amount, we will perform the quantitative goodwill impairment test. We calculate the fair value of the reporting unit using a discounted cash flow method and market approach method, and then comparing the respective fair value with the carrying amount of the reporting unit. If the carrying amount of the reporting unit exceeds its fair value, we record the amount of the impairment loss, if any. |
Research and Development | Research and development costs incurred in the discovery of new knowledge and the resulting translation of this new knowledge into plans and designs for new products prior to the attainment of the related products’ technological feasibility are recorded as expenses in the period incurred. To date, the time incurred between the attainment of the related products' technological feasibility and general release to customers has been short. Research and development costs incurred relating to the development of internal-use software and website development, including software used to upgrade and enhance our websites and applications to be sold as a service are capitalized in the period incurred and amortized over 1 year to 5 years. These costs include external direct costs of materials and services and internal costs such as payroll and benefits of those employees directly associated with the development of new functionality in internal use software to be sold as a service. Any costs related to preliminary project activities and post implementation activities of internal-use software are expensed as incurred. The amount of costs capitalized during 2021 relating to internally developed computer software to be sold as a service was $2.0 million and no costs were capitalized in 2020. No amounts were charged to expense during 2021, 2020 or 2019. These capitalized costs, which total $2.0 million as of December 31, 2021 and zero as of December 31, 2020 are primarily included in net intangible assets in our consolidated balance sheet. |
Reserve for Warranties | We establish at the time of sale a liability for the one-year warranty included with the initial purchase price of our products, based upon an estimate of the repair expenses likely to be incurred for the warranty period. The warranty period is measured in installation-months for each major product group. The warranty reserve is included in accrued liabilities in the accompanying consolidated balance sheets. The warranty expense is estimated by applying the actual total repair expenses for each product group in the prior period and determining a rate of repair expense per installation-month. This repair rate is multiplied by the number of installation-months of warranty for each product group to determine the provision for warranty expenses for the period. We evaluate our exposure to warranty costs at the end of each period using the estimated expense per installation-month for each major product group, the number of units remaining under warranty, and the remaining number of months each unit will be under warranty. We have a history of new product introductions and enhancements to existing products, which may result in unforeseen issues that increase our warranty costs. While such expenses have historically been within expectations, we cannot guarantee this will continue in the future. |
Income Taxes | We account for income taxes using the asset and liability method in accordance with ASC Topic 740, Income Taxes . The objectives of accounting for income taxes under ASC Topic 740 are to recognize the amount of taxes payable or refundable for the current year and to recognize the deferred tax assets and liabilities that relate to tax consequences in future years, which result from differences between the respective tax basis of assets and liabilities and their financial reporting amounts and tax attribute carryforwards. Deferred tax assets and liabilities are measured using the enacted tax rates in effect for the year in which the respective temporary differences or tax credit carryforwards are expected to be recovered or settled. We review our deferred tax assets on a regular basis to evaluate their recoverability based upon expected future reversals of deferred tax assets and liabilities, projections of future taxable income, and tax planning strategies that we might employ to utilize such assets, including net operating loss carryforwards. The realization of deferred tax assets is contingent upon the generation of future taxable income and other restrictions that may exist under the tax laws of the jurisdiction in which a deferred tax asset exists. We assess the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit the use of existing deferred tax assets. Management's evaluation begins with a jurisdictional review of cumulative gains or losses incurred over recent years. A significant piece of objective negative evidence exists when a jurisdiction has incurred cumulative losses over recent years. Such objective evidence limits the ability to consider other subjective evidence, such as our projections for future growth. Based on the positive and negative evidence for recoverability, we establish a valuation allowance against the net deferred tax assets of a taxing jurisdiction in which we operate unless it is “more likely than not” that we will recover such assets through the above means. |
Earnings (Loss) Per Share (“EPS”) | Basic (loss) earnings per share is computed by dividing net (loss) 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 stock options, restricted stock, restricted stock units and market-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. Market-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 loss for the period presented, the diluted loss per share calculation does not include our potential common stock, as the inclusion of these shares in the calculation would have an anti-dilutive effect. A reconciliation of the number of common shares used in the calculation of basic and diluted EPS is presented in Note 14, “(Loss) Earnings Per Share.” |
Accounting for Stock-Based Compensation | We measure and record compensation expense using the applicable accounting guidance for share-based payments related to stock options, restricted stock, restricted stock units and market-based awards granted to our directors and employees. The fair value of stock options, including performance awards, without a market condition is estimated, at the date of grant, using the Black-Scholes option-valuation model. The fair value of restricted stock unit awards and stock options with a market condition is estimated, at the date of grant, using the Monte Carlo Simulation valuation model. 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. In valuing our stock options, significant judgment is required in determining the expected volatility of our common stock and the expected life that individuals will hold their stock options prior to exercising. Expected volatility for stock options is based on the historical and implied volatility of our own common stock while the volatility for our restricted stock units with a market condition is based on the historical volatility of our own stock and the stock of companies within our defined peer group. The expected life of stock options is derived from the historical actual term of option grants and an estimate of future exercises during the remaining contractual period of the option. While volatility and estimated life are assumptions that do not bear the risk of change subsequent to the grant date of stock options, these assumptions may be difficult to measure as they represent future expectations based on historical experience. Further, our expected volatility and expected life may change in the future, which could substantially change the grant-date fair value of future awards of stock options and, ultimately, the expense we record. The fair value of restricted stock and restricted stock units, including performance awards, without a market condition is estimated using the current market price of our common stock on the date of grant. We expense stock-based compensation for stock options, restricted stock, restricted stock units and performance awards over the requisite service period. For awards with only a service condition, we expense stock-based compensation using the straight-line method over the requisite service period for the entire award. For awards with both performance and service conditions, we expense the stock-based compensation on a straight-line basis over the requisite service period for each separately vesting portion of the award, taking into account the probability that we will satisfy the performance conditions. Furthermore, we expense awards with a market condition over the three-year vesting period regardless of the value that the award recipients ultimately receive. All income tax-related cash flows resulting from share-based payments are reported as operating activities in the statement of cash flows in the deferred income tax benefit line item. We elect to account for forfeitures related to the service condition-based awards as they occur. |
Concentration of Credit Risk | Financial instruments that expose us to concentrations of credit risk consist principally of operating demand deposit accounts. Our policy is to place our operating demand deposit accounts with high credit quality financial institutions, the balances of which at times may exceed federally insured limits. We continually monitor our banking relationships and believe we are not exposed to any significant credit risk on our operating demand deposit accounts. |
Estimates | The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 from those estimates. |
Impact of Recently Adopted Accounting Standards | In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13, and subsequent related amendments to ASU 2016-13, replace the existing incurred loss impairment model with an expected loss model that requires the use of forward-looking information to calculate credit loss estimates. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. These changes will result in earlier recognition of credit losses. We adopted ASU 2016-13 effective as of January 1, 2020, and the adoption of the new guidance did not have a material impact on our consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes which amends and aims to simplify accounting disclosure requirements regarding a number of topics including: intraperiod tax allocation, accounting for deferred taxes when there are changes in consolidation of certain investments, tax basis step up in an acquisition and the application of effective rate changes during interim periods, amongst other improvements. We adopted ASU 2019-12 effective as of January 1, 2021, and the adoption of the new guidance did not have a material impact on our consolidated financial statements. In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Asset and Contract Liabilities from Contracts with Customers which intends to simplify the accounting for acquired revenue contracts with customers in a business combination and to also remove inconsistencies in this topic related to recognition of an acquired contract liability and payment terms and their effect on subsequent revenue recognized by the acquirer. ASU No. 2021-08 allows an acquirer to recognize and measure contract assets and contract liabilities acquired in a business combination in a similar manner to how they are recorded on the acquiree's financial statements at book value. Early adoption is permitted and we early adopted ASU No. 2021-08 in the fourth quarter of 2021. As a result of the early adoption of ASU No.2021-08 we recorded the deferred revenue associated with the acquisition of Holobuilder at its book value of approximately $4.0 million. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Property, Plant and Equipment | Depreciation is computed beginning on the date that the asset is placed into service using the straight-line method over the estimated useful lives of the various classes of assets as follows: Machinery, equipment and software 2 to 5 years Furniture and fixtures 3 to 10 years December 31, 2021 December 31, 2020 Property, plant and equipment: Machinery and equipment $ 87,028 $ 91,984 Furniture and fixtures 6,377 6,620 Leasehold improvements 22,931 21,414 Property, plant and equipment at cost 116,336 120,018 Less: accumulated depreciation and amortization (94,142) (96,927) Property, plant and equipment, net $ 22,194 $ 23,091 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Payments and Non-cash Activity | Selected cash payments and non-cash activities were as follows: Years ended December 31, 2021 2020 2019 Supplemental cash flow information: Cash paid for interest $ 1,186 $ 21 $ 6 Cash paid for income taxes $ 4,365 $ 3,409 $ 5,498 Supplemental noncash investing and financing activities: Transfer of service and sales demonstration inventory to fixed assets $ 2,226 $ 1,688 $ 3,044 Assumption of contingent consideration from acquisition $ — $ 980 $ — Purchases of Property, plant, equipment and Intangibles accrued but not paid $ 754 $ — $ — |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables present our revenues by sales type as presented in our consolidated statements of operations disaggregated by the timing of transfer of goods or services (in thousands): Years ended December 31, 2021 2020 2019 Product Sales Products transferred to a customer at a point in time $ 234,188 $ 205,849 $ 277,841 Products transferred to a customer over time 16,915 12,738 11,838 $ 251,103 $ 218,587 $ 289,679 Years ended December 31, 2021 2020 2019 Service Sales Service transferred to a customer at a point in time $ 39,559 $ 36,732 $ 48,593 Service transferred to a customer over time 47,152 48,449 43,493 $ 86,711 $ 85,181 $ 92,086 The following table presents our revenues disaggregated by geography, based on the billing addresses of our customers (in thousands): Years ended December 31, 2021 2020 2019 Total Sales to External Customers Americas (1) $ 140,633 $ 128,826 $ 165,756 EMEA (1) 104,350 91,390 122,279 APAC (1) 92,831 83,552 93,730 $ 337,814 $ 303,768 $ 381,765 (1) Regions represent North America and South America (Americas); Europe, the Middle East, and Africa (EMEA); and the Asia-Pacific (APAC). |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Allowance for Doubtful Accounts | Activity in the allowance for credit losses was as follows: Years ended December 31, 2021 2020 2019 Balance, beginning of year $ 3,888 $ 3,449 $ 1,748 Provision (net of recovery) 176 440 2,090 Amounts written off, net of recoveries (1,833) (1) (389) Balance, end of year $ 2,231 $ 3,888 $ 3,449 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories consist of the following: December 31, 2021 December 31, 2020 Raw materials $ 34,617 $ 29,955 Finished goods 18,528 17,436 Inventories, net $ 53,145 $ 47,391 Service and sales demonstration inventory, net $ 30,554 $ 31,831 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in these balances are shown below: (in thousands) December 31, 2021 December 31, 2020 Goodwill, beginning $ 57,541 $ 49,704 Recognized goodwill 26,723 5,467 Foreign currency translation (2,168) 2,370 Goodwill, ending $ 82,096 $ 57,541 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets consist of the following: As of December 31, 2021 Carrying Value Accumulated Net Intangible Amortizable intangible assets: Product technology $ 20,944 $ 12,337 $ 8,607 Patents and trademarks 15,535 8,294 7,241 Customer relationships 9,892 4,811 5,081 Other 10,369 5,682 4,687 Total $ 56,740 $ 31,124 $ 25,616 As of December 31, 2020 Carrying Value Accumulated Net Intangible Amortizable intangible assets: Product technology $ 14,625 $ 10,785 $ 3,840 Patents and trademarks 14,325 7,495 6,830 Customer relationships 6,541 4,002 2,539 Other 5,265 5,173 92 Total $ 40,756 $ 27,455 $ 13,301 |
Schedule of Estimated Amortization Expense | The estimated amortization expense for each of the years 2022 through 2026 and thereafter is as follows: Years ending December 31, Amount 2022 $ 3,571 2023 3,175 2024 2,767 2025 2,642 2026 1,590 Thereafter 11,871 $ 25,616 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following: As of December 31, 2021 2020 Accrued compensation and benefits $ 15,723 $ 17,457 Accrued restructuring costs 3,919 2,347 Accrued warranties 1,880 1,683 Professional and legal fees 2,053 1,810 Taxes other than income 3,674 5,013 General services administration contract contingent liability (see Note 12) — 12,325 Other accrued liabilities 959 1,958 $ 28,208 $ 42,593 |
Schedule of Activity Related to Accrued Warranties | Activity related to accrued warranties was as follows: Years ended December 31, 2021 2020 2019 Balance, beginning of year $ 1,683 $ 2,090 $ 2,571 Provision for warranty expense 2,851 2,727 3,600 Fulfillment of warranty obligations (2,654) (3,134) (4,081) Balance, end of year $ 1,880 $ 1,683 $ 2,090 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
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. December 31, 2021 Level 1 Level 2 Level 3 Liabilities: Contingent consideration (1) $ — $ — $ 1,028 Total $ — $ — $ 1,028 December 31, 2020 Level 1 Level 2 Level 3 Liabilities: Contingent consideration (1) $ — $ — $ 1,056 Total $ — $ — $ 1,056 (1) Contingent consideration liability represents arrangements to pay the former owners of certain companies we acquired based on the attainment of future product release milestones and is reported in other long-term liabilities. We use a probability-weighted discounted cash flow model to estimate the fair value of contingent consideration liabilities. These probability weightings are developed internally and assessed on a quarterly basis. The remaining undiscounted maximum payment under these arrangements was $1.1 million as of December 31, 2021. We expect to make payments earned by former owners under these arrangements on August 31, 2023. |
Other Expense (Income), Net (Ta
Other Expense (Income), Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Schedule of Other (Expense) Income , Net | Other expense (income), net consists of the following: Years ended December 31, 2021 2020 2019 Foreign exchange transaction losses $ 560 $ 1,680 $ 1,211 Present4D impairment — — 2,152 Contingent consideration fair value adjustment — — (1,562) Other (490) (1,249) 512 Total other expense, net $ 70 $ 431 $ 2,313 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (Loss) Before Income Tax Expense (Benefit) | Income (loss) before income tax (benefit) expense consists of the following: Years ended December 31, 2021 2020 2019 Domestic $ (13,202) $ (33,991) $ (40,963) Foreign 4,641 3,218 (20,051) (Loss) Income before income taxes $ (8,561) $ (30,773) $ (61,014) |
Schedule of Components of Income Tax Expense (Benefit) | The components of the income tax expense (benefit) for income taxes are as follows: Years ended December 31, 2021 2020 2019 Current: Federal $ 211 $ (3,557) $ 3,215 State 114 169 400 Foreign 6,372 (2,032) 3,809 Current income tax expense (benefit) 6,697 (5,420) 7,424 Deferred: Federal 15,464 (2,886) (7,630) State 6,418 (2,937) (1,667) Foreign 2,824 (20,159) 3,006 Deferred income tax expense (benefit) 24,706 (25,982) (6,291) Income tax expense (benefit) $ 31,403 $ (31,402) $ 1,133 |
Reconciliation of Income Tax Expense (Benefit) | Reconciliations of the income tax expense at the U.S. federal statutory income tax rate compared to our actual income tax expense (benefit) are summarized below: Years ended December 31, 2021 2020 2019 Tax expense at statutory rate $ (1,798) $ (6,462) $ (12,812) State income taxes, net of federal benefit 106 (1,400) (1,564) Foreign tax rate difference 303 1,999 (1,954) Change in valuation allowance 26,475 (3,736) 8,485 Impact of intra-entity IP transfers 231 (19,227) — Prepaid tax on intercompany profit 3,390 — — Impact of permanent differences of non-deductible cost 1,658 (602) 1,550 Withholding/other foreign taxes 838 — — Research and development credit (737) (662) (753) Global intangible low-taxed income (“GILTI”) 763 — 1,795 Foreign currency gain/loss 594 — — Provision to return adjustments & deferred adjustments 313 (572) 356 Change in enacted tax rates (306) (1,138) 359 Equity based compensation (245) (42) (25) Uncertain tax positions (185) — — Intangible & goodwill impairment — — 4,999 Other 3 440 697 Income tax expense (benefit) $ 31,403 $ (31,402) $ 1,133 |
Schedule of Components of Net Deferred Income Tax Assets and Liabilities | The components of our net deferred income tax assets and liabilities are as follows: As of December 31, 2021 2020 Net deferred income tax asset - Non-current Warranty cost $ 305 $ 310 Inventory reserve 2,287 5,234 Unearned service revenue 9,913 11,607 Employee stock options 3,282 3,271 Tax credits 3,688 2,828 Loss carryforwards 18,487 8,530 Depreciation 1,295 1,419 Other, net 1,402 735 Intangibles & goodwill 14,400 19,295 Lease liability 4,749 6,986 Total deferred tax assets 59,808 60,215 Valuation allowance (35,148) (6,916) Total deferred tax assets net of valuation allowance 24,660 53,299 Net deferred income tax liability - Non-current Operating lease right-of-use asset (4,441) (6,636) Total deferred tax liabilities (4,441) (6,636) Net deferred tax assets $ 20,219 $ 46,663 |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Years ended December 31, 2021 2020 2019 Balance at January 1 $ 1,873 $ 1,924 $ 324 Additions based on tax positions related to the current year 53 273 314 Additions for tax positions of prior years — — 1,675 Lapse of statute of limitations (262) (324) (389) Balance at December 31 $ 1,664 $ 1,873 $ 1,924 |
Summary of Income Tax Examinations | The table below summarizes the open tax years and ongoing tax examinations in major jurisdictions as of December 31, 2021. Jurisdiction Open Years Examination United States - Federal Income Tax 2018-2021 N/A United States - various states 2017-2021 N/A Germany 2013-2021 2013-2014 Switzerland 2019-2021 N/A Singapore 2017-2021 N/A |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Valuation Assumptions | For market-based restricted stock units granted during 2021 and 2020 valued using the Monte Carlo Simulation valuation model, we used the following assumptions: Year ended December 31 2021 2020 Risk-free interest rate 0.2 % 1.2 % Expected dividend yield — % — % Term 3 years 3 years Expected volatility 45.0 % 40.0 % Weighted-average expected volatility 45.0 % 40.0 % |
Schedule of Stock Option Activity | A summary of stock option activity and weighted average exercise prices follows: Options Weighted- Weighted-Average Aggregate Intrinsic Outstanding at January 1, 2021 155,048 $ 56.53 Granted — — Forfeited (6,701) 58.08 Exercised (103,823) 56.61 Outstanding at December 31, 2021 44,524 $ 56.11 1.5 $ 667 Options exercisable at December 31, 2021 44,524 $ 56.11 0.2 $ 667 |
Schedule 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 year ended December 31, 2021: Shares Weighted-Average Non-vested at January 1, 2021 377,447 $ 60.92 Granted 168,573 100.66 Forfeited (36,288) 80.07 Vested (159,153) 57.73 Non-vested at December 31, 2021 350,579 $ 79.11 |
Share-based Payment Arrangement, Expensed and Capitalized, Amount | The following table summarizes total stock-based compensation expense for each of the line items on our consolidated statement of operations: Years ended December 31, 2021 2020 2019 Cost of Sales Product $ 566 $ 356 $ 628 Service 69 346 373 Total cost of sales $ 635 $ 702 $ 1,001 Operating Expenses Selling, general and administrative $ 8,985 $ 6,327 $ 8,786 Research and development 1,836 1,285 1,282 Total operating expenses $ 10,821 $ 7,612 $ 10,068 |
(Loss) Earnings Per Share (Tabl
(Loss) Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of 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 is presented below: Years Ended December 31, 2021 2020 2019 Shares Per-Share Shares Per-Share Shares Per-Share Basic earnings per share 18,187,946 $ (2.20) 17,769,958 $ 0.04 17,383,415 $ (3.58) Effect of dilutive securities — — 156,366 — — — Diluted earnings per share 18,187,946 — $ (2.20) 17,926,324 $ 0.04 17,383,415 $ (3.58) Securities excluded from the determination of weighted average shares for the calculation of diluted earnings per share, as they were potentially antidilutive 395,387 — 886,274 |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Revenue from External Customers by Geographic Areas | Total sales to external customers is based upon the geographic location of the customer. For the Years Ended December 31, 2021 2020 2019 Total sales to external customers United States and Canada $ 127,661 $ 119,769 $ 151,646 Americas-Other 12,973 9,057 14,110 Germany 48,772 46,166 52,083 Europe-Other 55,577 45,224 70,196 Japan 25,997 4,998 33,361 China 40,808 31,748 32,934 Asia-Other 26,026 46,806 27,435 $ 337,814 $ 303,768 $ 381,765 |
Schedule of Long Lived Assets Attributed to Geographic Area | Long-lived assets consist primarily of property, plant, and equipment, goodwill, and intangible assets, and are attributed to the geographic area in which they are located or originated, as applicable. As of December 31, 2021 2020 2019 Long-Lived Assets United States $ 82,845 $ 42,729 $ 45,225 Americas-Other 9,794 10,415 10,889 Germany 24,415 26,671 26,295 Europe-Other 10,063 10,966 4,984 Japan 1,039 1,192 1,423 Asia-Other 1,750 1,960 2,313 $ 129,906 $ 93,933 $ 91,129 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Lease Cost and Supplemental Cash Flow Information Related to Leases | The components of lease expense were as follows: Year Ended Year Ended Operating lease cost $ 7,805 $ 8,506 Finance lease cost: Amortization of ROU assets $ 295 $ 307 Interest on lease liabilities $ 20 $ 29 Total finance lease cost $ 315 $ 336 Supplemental cash flow information related to leases was as follows: Year Ended Year Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 7,860 $ 8,272 Operating cash flows from finance leases $ 20 $ 29 Financing cash flows from finance leases $ 296 $ 309 ROU assets obtained in exchange for lease obligations: Operating leases $ 1,210 $ 13,611 |
Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows: As of As of December 31, 2021 December 31, 2020 Operating leases: Operating lease right-of-use asset $ 22,543 $ 26,107 Current operating lease liability $ 5,601 $ 5,557 Operating lease liability - less current portion 18,538 21,985 Total operating lease liability $ 24,139 $ 27,542 Finance leases: Property and equipment, at cost $ 1,380 $ 1,813 Accumulated depreciation (1,222) (1,415) Property and equipment, net $ 158 $ 398 Current finance lease liability $ 137 $ 278 Finance lease liability - less current portion 110 146 Total finance lease liability $ 247 $ 424 Weighted Average Remaining Lease Term (in years): Operating leases 5.69 6.55 Finance leases 2.12 1.93 Weighted Average Discount Rate: Operating leases 5.67 % 5.66 % Finance leases 5.02 % 5.07 % |
Operating Lease, Liability, Maturity | Maturities of lease liabilities are as follows: Year Ending December 31, Operating leases Finance leases 2022 $ 6,795 $ 146 2023 5,664 68 2024 4,628 40 2025 3,219 5 2026 2,305 1 Thereafter 5,794 — Total lease payments $ 28,405 $ 260 Less imputed interest (4,266) (13) Total $ 24,139 $ 247 |
Finance Lease, Liability, Maturity | Maturities of lease liabilities are as follows: Year Ending December 31, Operating leases Finance leases 2022 $ 6,795 $ 146 2023 5,664 68 2024 4,628 40 2025 3,219 5 2026 2,305 1 Thereafter 5,794 — Total lease payments $ 28,405 $ 260 Less imputed interest (4,266) (13) Total $ 24,139 $ 247 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [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 the acquisition: Fair Value (Final) Tangible assets acquired: Accounts receivable $ 375 Property, plant and equipment, net 46 Other assets 7 Total assets acquired 428 Liabilities assumed: Accounts payable and accrued liabilities (55) Deferred revenue (3,966) Total liabilities assumed (4021) Intangible assets 10,670 Net assets acquired 7,077 — Goodwill 26,723 Purchase price paid, net of cash acquired $ 33,800 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | Following are the details of the purchase price allocated to the intangible assets acquired for the Holobuilder acquisition: Amount Weighted Average Life (Years) Brand $ 370 3 Technology 6,800 5 Customer relationships 3,500 12 Fair value of intangible assets acquired $ 10,670 7 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | Activity related to the accrued restructuring charge and cash payments during the year ended December 31, 2021 was as follows: Severance and other benefits Professional fees and other related charges Total Balance at December 31, 2020 $ 1,481 $ 866 $ 2,347 Additions charged to expense 5,197 2,171 7,368 Cash payments (3,236) (2,560) (5,796) Balance at December 31, 2021 $ 3,442 $ 477 $ 3,919 Balance at February 14, 2020 $ — $ — $ — Additions charged to expense 12,107 3,349 15,456 Cash payments (10,626) (2,483) (13,109) Balance at December 31, 2020 $ 1,481 $ 866 $ 2,347 |
Quarterly Result of Operation_2
Quarterly Result of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Results of Operations | QUARTERLY RESULT OF OPERATIONS (UNAUDITED) Quarter ended March 31, June 30, September 30, December 31, Sales $ 76,331 $ 82,110 $ 79,169 $ 100,204 Gross profit 40,407 45,482 42,331 55,707 Net (loss) income (1) (3,221) (1,176) (3,855) (31,712) Net (loss) income per share: Basic $ (0.18) $ (0.06) $ (0.21) $ (1.74) Diluted $ (0.18) $ (0.06) $ (0.21) $ (1.74) (1) During 2021, in connection with the Restructuring Plan, we recorded a pre-tax charge of approximately $1.5 million during the first quarter 2021, $0.8 million during the second quarter, $1.4 million during the third quarter and $3.7 million during the fourth quarter primarily consisting of severance and related benefits, professional fees and other related charges. Quarter ended March 31, June 30, September 30, December 31, Sales (1) $ 79,515 $ 60,564 $ 70,736 $ 92,953 Gross profit (2) 43,873 28,896 36,298 50,780 Net income (loss) (14,823) (8,932) (3,024) 27,408 Net income (loss) per share: Basic $ (0.84) $ (0.50) $ (0.17) $ 1.53 Diluted $ (0.84) $ (0.50) $ (0.17) $ 1.52 (1) For the second quarter of 2020, sales were reduced by an incremental $0.6 million sales adjustment related to our GSA Contracts based on the results of the Review conducted by our outside legal counsel and forensic accountants. (2) During 2020, in connection with the Restructuring Plan, we recorded a pre-tax charge of approximately $13.7 million during the first quarter 2020, $0.6 million during the second quarter, $0.3 million during the third quarter and $1.2 million during the fourth quarter primarily consisting of severance and related benefits, professional fees and other related charges and costs including a non-cash expense of $0.4 million related to the disposal of our Photonics business and 3D Design related assets. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2021USD ($)numberOfPlan | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Standard product warranty period | 1 year | |||
Deposits with foreign banks | $ 95,200,000 | $ 119,200,000 | ||
Demonstration inventory shelf life (in years) | 3 years | |||
Refurbished demonstration inventory selling period (in months) | 12 months | |||
Service inventory turnover period | 12 months | |||
Service inventory not for sale, useful life | 3 years | |||
Reserve percentage of FIFO obsolete and excess inventory | 100.00% | |||
Threshold for capitalization of property and equipment | $ 1,000 | |||
Depreciation | 9,200,000 | 10,800,000 | $ 13,000,000 | |
Impairment of goodwill | 0 | 0 | 21,233,000 | |
Indefinite-lived intangible assets | $ 0 | 0 | ||
Intangible assets weighted-average amortization period | 9 years | |||
Assets impairment charges | $ 0 | 0 | 35,213,000 | |
Capitalized exploratory well cost, charged to expense | $ 0 | 0 | 0 | |
Warranty term | 1 year | |||
Number of compensation plans | numberOfPlan | 2 | |||
Revenue recognized | $ 34,400,000 | 35,200,000 | ||
Finite-Lived Intangible Assets | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Capitalized exploratory well costs | 2,000,000 | 0 | ||
Open Technologies | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Impairment of goodwill | $ 21,200,000 | |||
Nutfield, Laser Control Systems, Lanmark and Open Technologies Acquisitions | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Assets impairment charges | 0 | $ 10,500,000 | $ 0 | |
Holobuilder | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Intangible assets weighted-average amortization period | 7 years | |||
Holobuilder | Accounting Standards Update 2021-08 | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Revenue recognized | $ 4,000,000 | |||
Performance Shares | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Vesting period, years | 3 years | |||
Software Development | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Capitalized exploratory well costs | $ 2,000,000 | $ 0 | ||
Minimum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Extended product warranty term | 1 month | |||
Account receivable period due | 30 days | |||
Other intangible assets, useful life | 3 years | |||
Minimum | Product technology and patents | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Other intangible assets, useful life | 7 years | |||
Minimum | Software Development | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Other intangible assets, useful life | 1 year | |||
Minimum | In Process Research and Development | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Other intangible assets, useful life | 1 year | |||
Maximum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Extended product warranty term | 3 years | |||
Account receivable period due | 90 days | |||
Other intangible assets, useful life | 20 years | |||
Maximum | Product technology and patents | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Other intangible assets, useful life | 20 years | |||
Maximum | Software Development | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Other intangible assets, useful life | 5 years | |||
Maximum | In Process Research and Development | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Other intangible assets, useful life | 5 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 3 years |
Machinery, Equipment and Software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 2 years |
Machinery, Equipment and Software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 5 years |
Furniture and fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 3 years |
Furniture and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 10 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment at cost | $ 116,336 | $ 120,018 |
Less: accumulated depreciation and amortization | (94,142) | (96,927) |
Property, plant and equipment, net | 22,194 | 23,091 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment at cost | 87,028 | 91,984 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment at cost | 6,377 | 6,620 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment at cost | $ 22,931 | $ 21,414 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Cash Payments and Non-Cash Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Supplemental cash flow information: | |||
Cash paid for interest | $ 1,186 | $ 21 | $ 6 |
Cash paid for income taxes | 4,365 | 3,409 | 5,498 |
Supplemental noncash investing and financing activities: | |||
Transfer of service and sales demonstration inventory to fixed assets | 2,226 | 1,688 | 3,044 |
Assumption of contingent consideration from acquisition | 0 | 980 | 0 |
Purchases of Property, plant, equipment and Intangibles accrued but not paid | $ 754 | $ 0 | $ 0 |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | $ 100,204 | $ 79,169 | $ 82,110 | $ 76,331 | $ 92,953 | $ 70,736 | $ 60,564 | $ 79,515 | $ 337,814 | $ 303,768 | $ 381,765 |
Americas | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 140,633 | 128,826 | 165,756 | ||||||||
EMEA | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 104,350 | 91,390 | 122,279 | ||||||||
Other APAC | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 92,831 | 83,552 | 93,730 | ||||||||
Product Sales | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 251,103 | 218,587 | 289,679 | ||||||||
Product Sales | Products transferred to a customer at a point in time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 234,188 | 205,849 | 277,841 | ||||||||
Product Sales | Products transferred to a customer over time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 16,915 | 12,738 | 11,838 | ||||||||
Service Sales | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 86,711 | 85,181 | 92,086 | ||||||||
Service Sales | Products transferred to a customer at a point in time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 39,559 | 36,732 | 48,593 | ||||||||
Service Sales | Products transferred to a customer over time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | $ 47,152 | $ 48,449 | $ 43,493 |
Revenues - Additional Informati
Revenues - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Capitalized contract cost, net | $ 3.5 | $ 4.1 |
Revenue recognized | 34.4 | 35.2 |
Refund liability | 0.2 | 0.3 |
Prepaid Expenses and Other Current Assets | ||
Disaggregation of Revenue [Line Items] | ||
Capitalized contract cost, net | 2.3 | 2.6 |
Other Noncurrent Assets | ||
Disaggregation of Revenue [Line Items] | ||
Capitalized contract cost, net | $ 1.2 | $ 1.5 |
Allowance for Credit Losses - R
Allowance for Credit Losses - Roll Forward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for doubtful accounts | |||
Balance, beginning of year | $ 3,888 | $ 3,449 | $ 1,748 |
Provision (net of recovery) | 176 | 440 | 2,090 |
Amounts written off, net of recoveries | (1,833) | (1) | (389) |
Balance, end of year | $ 2,231 | $ 3,888 | $ 3,449 |
Inventories - Additional Inform
Inventories - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2021category | |
Property, Plant and Equipment [Line Items] | |
Inventory categories | 3 |
Demonstration inventory shelf life (in years) | 3 years |
Refurbished demonstration inventory selling period (in months) | 12 months |
Sales Inventory | |
Property, Plant and Equipment [Line Items] | |
Demonstration inventory shelf life (in years) | 3 years |
Service Inventory | |
Property, Plant and Equipment [Line Items] | |
Service inventory selling period (in months) | 12 months |
Inventory, remaining useful life (in years) | 3 years |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 34,617 | $ 29,955 |
Finished goods | 18,528 | 17,436 |
Inventories, net | 53,145 | 47,391 |
Service and sales demonstration inventory, net | $ 30,554 | $ 31,831 |
Goodwill - Additional Informati
Goodwill - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2021USD ($)segment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 82,096,000 | $ 57,541,000 | $ 49,704,000 |
Net of accumulated impairments | 35,200,000 | 35,200,000 | |
Impairment of goodwill | $ 0 | $ 0 | $ 21,233,000 |
Number of reportable segments | segment | 1 |
Goodwill - Changes in Goodwill
Goodwill - Changes in Goodwill by Reporting Units (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning | $ 57,541 | $ 49,704 |
Recognized goodwill | 26,723 | 5,467 |
Foreign currency translation | (2,168) | 2,370 |
Goodwill, ending | $ 82,096 | $ 57,541 |
Intangible Assets - Schedule (D
Intangible Assets - Schedule (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Carrying Value | $ 56,740 | $ 40,756 |
Accumulated Amortization | 31,124 | 27,455 |
Net Intangible | 25,616 | 13,301 |
Product technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Carrying Value | 20,944 | 14,625 |
Accumulated Amortization | 12,337 | 10,785 |
Net Intangible | 8,607 | 3,840 |
Patents and trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Carrying Value | 15,535 | 14,325 |
Accumulated Amortization | 8,294 | 7,495 |
Net Intangible | 7,241 | 6,830 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Carrying Value | 9,892 | 6,541 |
Accumulated Amortization | 4,811 | 4,002 |
Net Intangible | 5,081 | 2,539 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Carrying Value | 10,369 | 5,265 |
Accumulated Amortization | 5,682 | 5,173 |
Net Intangible | $ 4,687 | $ 92 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense of intangible assets | $ 4.2 | $ 3.4 | $ 5.6 |
Intangible Assets - Estimated A
Intangible Assets - Estimated Amortization Expense Schedule (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2022 | $ 3,571 | |
2023 | 3,175 | |
2024 | 2,767 | |
2025 | 2,642 | |
2026 | 1,590 | |
Thereafter | 11,871 | |
Net Intangible | $ 25,616 | $ 13,301 |
Accrued Liabilities - Accrued L
Accrued Liabilities - Accrued Liabilities Schedule (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||||
Accrued compensation and benefits | $ 15,723 | $ 17,457 | ||
Accrued restructuring costs | 3,919 | 2,347 | ||
Accrued warranties | 1,880 | 1,683 | $ 2,090 | $ 2,571 |
Professional and legal fees | 2,053 | 1,810 | ||
Taxes other than income | 3,674 | 5,013 | ||
General services administration contract contingent liability (see Note 12) | 0 | 12,325 | ||
Other accrued liabilities | 959 | 1,958 | ||
Total accrued liabilities | $ 28,208 | $ 42,593 |
Accrued Liabilities - Activity
Accrued Liabilities - Activity Related to Accrued Warranties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Balance, beginning of year | $ 1,683 | $ 2,090 | $ 2,571 |
Provision for warranty expense | 2,851 | 2,727 | 3,600 |
Fulfillment of warranty obligations | (2,654) | (3,134) | (4,081) |
Balance, end of year | $ 1,880 | $ 1,683 | $ 2,090 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Level 1 | Fair Value, Measurements, Recurring | ||
Liabilities: | ||
Contingent consideration | $ 0 | $ 0 |
Total | 0 | 0 |
Level 2 | Fair Value, Measurements, Recurring | ||
Liabilities: | ||
Contingent consideration | 0 | 0 |
Total | 0 | 0 |
Level 3 | Fair Value, Measurements, Recurring | ||
Liabilities: | ||
Contingent consideration | 1,028 | 1,056 |
Total | 1,028 | $ 1,056 |
Monte Carlo Simulation Valuation Model | ||
Liabilities: | ||
Undiscounted maximum payment under the contingent consideration arrangements | $ 1,100 |
Other Expense (Income), Net (De
Other Expense (Income), Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |||
Foreign exchange transaction losses | $ 560 | $ 1,680 | $ 1,211 |
Present4D impairment | 0 | 0 | 2,152 |
Contingent consideration fair value adjustment | 0 | 0 | (1,562) |
Other | (490) | (1,249) | 512 |
Total other expense, net | $ 70 | $ 431 | $ 2,313 |
Income Taxes - Income (Loss) Be
Income Taxes - Income (Loss) Before Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (13,202) | $ (33,991) | $ (40,963) |
Foreign | 4,641 | 3,218 | (20,051) |
LOSS BEFORE INCOME TAX EXPENSE (BENEFIT) | $ (8,561) | $ (30,773) | $ (61,014) |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current: | |||
Federal | $ 211 | $ (3,557) | $ 3,215 |
State | 114 | 169 | 400 |
Foreign | 6,372 | (2,032) | 3,809 |
Current income tax expense (benefit) | 6,697 | (5,420) | 7,424 |
Deferred: | |||
Federal | 15,464 | (2,886) | (7,630) |
State | 6,418 | (2,937) | (1,667) |
Foreign | 2,824 | (20,159) | 3,006 |
Deferred income tax expense (benefit) | 24,706 | (25,982) | (6,291) |
Income tax expense (benefit) | $ 31,403 | $ (31,402) | $ 1,133 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Line Items] | ||||
Deferred tax assets, intangibles | $ 14,400 | $ 19,295 | ||
Deferred tax assets | 24,660 | 53,299 | ||
Deferred income tax assets, foreign | 7,800 | 7,100 | ||
Deferred tax assets, valuation allowance | 35,148 | 6,916 | ||
Net increase (decrease) in total valuation allowance | (26,500) | (3,700) | $ 8,500 | |
Undistributed earnings of foreign subsidiaries | 900 | |||
Unrecognized tax benefits | 1,664 | 1,873 | $ 1,924 | $ 324 |
Unrecognized tax benefits that would impact effective tax rate | $ 1,600 | |||
Minimum | ||||
Income Taxes [Line Items] | ||||
Tax returns examination statute of limitations period | 3 years | |||
Maximum | ||||
Income Taxes [Line Items] | ||||
Tax returns examination statute of limitations period | 4 years | |||
Intellectual Property Rights | ||||
Income Taxes [Line Items] | ||||
Deferred tax assets, intangibles | 19,200 | |||
Domestic Tax Authority | ||||
Income Taxes [Line Items] | ||||
Deferred income tax liabilities | $ (400) | |||
Deferred tax assets | 21,400 | |||
Operating loss carryforwards | 34,400 | |||
Effective income tax rate reconciliation, tax credit, amount | 3,200 | |||
State and Local Jurisdiction | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards | 67,600 | |||
Effective income tax rate reconciliation, tax credit, amount | 400 | |||
Foreign Tax Authority | ||||
Income Taxes [Line Items] | ||||
Deferred tax assets, intangibles | 17,300 | 19,400 | ||
Deferred tax assets | 20,600 | $ 25,300 | ||
Operating loss carryforwards | 40,500 | |||
Operating loss carryforwards portion that does not expire | $ 31,000 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Tax expense at statutory rate | $ (1,798) | $ (6,462) | $ (12,812) |
State income taxes, net of federal benefit | 106 | (1,400) | (1,564) |
Foreign tax rate difference | 303 | 1,999 | (1,954) |
Change in valuation allowance | 26,475 | (3,736) | 8,485 |
Impact of intra-entity IP transfers | 231 | (19,227) | 0 |
Prepaid tax on intercompany profit | 3,390 | 0 | 0 |
Impact of permanent differences of non-deductible cost | 1,658 | (602) | 1,550 |
Withholding/other foreign taxes | 838 | 0 | 0 |
Research and development credit | (737) | (662) | (753) |
Global intangible low-taxed income (“GILTI”) | 763 | 0 | 1,795 |
Foreign currency gain/loss | 594 | 0 | 0 |
Provision to return adjustments & deferred adjustments | 313 | (572) | 356 |
Change in enacted tax rates | (306) | (1,138) | 359 |
Equity based compensation | (245) | (42) | (25) |
Uncertain tax positions | (185) | 0 | 0 |
Intangible & goodwill impairment | 0 | 0 | 4,999 |
Other | 3 | 440 | 697 |
Income tax expense (benefit) | $ 31,403 | $ (31,402) | $ 1,133 |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Income Tax Asset and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Net deferred income tax asset - Non-current | ||
Warranty cost | $ 305 | $ 310 |
Inventory reserve | 2,287 | 5,234 |
Unearned service revenue | 9,913 | 11,607 |
Employee stock options | 3,282 | 3,271 |
Tax credits | 3,688 | 2,828 |
Loss carryforwards | 18,487 | 8,530 |
Depreciation | 1,295 | 1,419 |
Other, net | 1,402 | 735 |
Intangibles & goodwill | 14,400 | 19,295 |
Lease liability | 4,749 | 6,986 |
Total deferred tax assets | 59,808 | 60,215 |
Valuation allowance | (35,148) | (6,916) |
Total deferred tax assets net of valuation allowance | 24,660 | 53,299 |
Net deferred income tax liability - Non-current | ||
Operating lease right-of-use asset | (4,441) | (6,636) |
Total deferred tax liabilities | (4,441) | (6,636) |
Net deferred tax assets | $ 20,219 | $ 46,663 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at January 1 | $ 1,873 | $ 1,924 | $ 324 |
Additions based on tax positions related to the current year | 53 | 273 | 314 |
Additions for tax positions of prior years | 0 | 0 | 1,675 |
Lapse of statute of limitations | (262) | (324) | (389) |
Balance at December 31 | $ 1,664 | $ 1,873 | $ 1,924 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2021 |
Commitments and Contingencies [Line Items] | |||
Purchase commitment, due in next twelve months | $ 40 | $ 40 | |
Long-term purchase commitments | $ 6.6 | ||
Government Contract | |||
Commitments and Contingencies [Line Items] | |||
Settlement paid | $ 12.3 | $ 12.3 | |
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 |
Stock Compensation Plans - Narr
Stock Compensation Plans - Narrative (Details) | 1 Months Ended | 12 Months Ended | |||
May 31, 2018shares | Dec. 31, 2021USD ($)numberOfPlaninstallment$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($) | May 31, 2014shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of compensation plans | numberOfPlan | 2 | ||||
Total intrinsic value of stock options exercised | $ | $ 3,000,000 | $ 4,200,000 | $ 3,400,000 | ||
Fair value of stock options vested | $ | 200,000 | 800,000 | 5,100,000 | ||
Allocated share-based compensation expense | $ | 11,500,000 | $ 8,300,000 | $ 11,100,000 | ||
Unrecognized stock-based compensation expense | $ | $ 16,100,000 | ||||
Weighted average, expected recognition period | 1 year 9 months 29 days | ||||
Employee Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options outstanding (in shares) | 44,524 | 155,048 | |||
Restricted Stock | Non-Employee Directors | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Value of shares granted upon election | $ | $ 100,000 | ||||
Restricted shares granted based on percent of director compensation | 17500000.00% | ||||
Restricted Time Based Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of installments | installment | 3 | ||||
Restricted Performance Based Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period, years | 3 years | ||||
Restricted Performance Based Stock Units | Black-Scholes Option Valuation Model | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in dollars per share) | $ / shares | $ 145.67 | $ 80.38 | |||
2009 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares of common stock authorized for grant awards (in shares) | 1,781,546 | ||||
Options outstanding (in shares) | 0 | ||||
2014 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares of common stock authorized for grant awards (in shares) | 2,974,543 | 1,974,543 | |||
Number of additional shares authorized (in shares) | 1,000,000 | ||||
Expiration period (in years) | 7 years | ||||
2014 Plan | Employee Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options outstanding (in shares) | 44,524 | ||||
Exercise price, lower range (usd per share) | $ / shares | $ 33.05 | ||||
Exercise price, upper range (usd per share) | $ / shares | $ 61.30 | ||||
Vesting period, years | 3 years | ||||
2004 and 2009 Plans | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares of common stock authorized for grant awards (in shares) | 891,960 | ||||
2014 and 2018 Plans | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Deferred stock unit represents the right to receive | 1 |
Stock Compensation Plans - Assu
Stock Compensation Plans - Assumptions Used to Estimate The Fair Value of Time-Based Stock Options (Details) - Performance Based Restricted Stock Units | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Risk-free interest rate | 0.20% | 1.20% |
Expected dividend yield | 0.00% | 0.00% |
Term | 3 years | 3 years |
Expected volatility | 45.00% | 40.00% |
Weighted-average expected volatility | 45.00% | 40.00% |
Stock Compensation Plans - Sche
Stock Compensation Plans - Schedule of Stock Option Activity and Weighted Average Exercise Prices (Details) - Employee Stock Option $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($)$ / sharesshares | |
Options | |
Beginning balance (in shares) | shares | 155,048 |
Granted (in shares) | shares | 0 |
Forfeited (in shares) | shares | (6,701) |
Exercised (in shares) | shares | (103,823) |
Ending balance (in shares) | shares | 44,524 |
Options exercisable (in shares) | shares | 44,524 |
Weighted- Average Exercise Price | |
Beginning balance (in dollars per share) | $ / shares | $ 56.53 |
Granted (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 58.08 |
Exercised (in dollars per share) | $ / shares | 56.61 |
Ending balance (in dollars per share) | $ / shares | 56.11 |
Options exercisable (in dollars per share) | $ / shares | $ 56.11 |
Weighted-Average Remaining Contractual Term (Years) | |
Outstanding | 1 year 6 months |
Options exercisable | 2 months 12 days |
Aggregate Intrinsic Value | |
Outstanding | $ | $ 667 |
Options exercisable | $ | $ 667 |
Stock Compensation Plans - Sc_2
Stock Compensation Plans - Schedule of Restricted Stock Unit Activity and Weighted Average Grant Date Fair Value (Details) - Restricted Stock Units (RSUs) | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Shares | |
Beginning balance (in shares) | shares | 377,447 |
Granted (in shares) | shares | 168,573 |
Forfeited (in shares) | shares | (36,288) |
Vested (in shares) | shares | (159,153) |
Ending balance (in shares) | shares | 350,579 |
Weighted-Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 60.92 |
Granted (in dollars per share) | $ / shares | 100.66 |
Forfeited (in dollars per share) | $ / shares | 80.07 |
Vested (in dollars per share) | $ / shares | 57.73 |
Ending balance (in dollars per share) | $ / shares | $ 79.11 |
Stock Compensation Plans - Comp
Stock Compensation Plans - Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cost of Sales | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation expense | $ 635 | $ 702 | $ 1,001 |
Cost of Sales | Product | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation expense | 566 | 356 | 628 |
Cost of Sales | Service | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation expense | 69 | 346 | 373 |
Operating Expense | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation expense | 10,821 | 7,612 | 10,068 |
Selling, general and administrative | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation expense | 8,985 | 6,327 | 8,786 |
Research and development | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation expense | $ 1,836 | $ 1,285 | $ 1,282 |
(Loss) Earnings Per Share - Rec
(Loss) 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 | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||||||||||
Basic earnings per share (in shares) | 18,187,946 | 17,769,958 | 17,383,415 | ||||||||
Effect of dilutive securities (in shares) | 0 | 156,366 | 0 | ||||||||
Diluted earnings per share (in shares) | 18,187,946 | 17,926,324 | 17,383,415 | ||||||||
Securities excluded from the determination of weighted average shares for the calculation of diluted earnings (loss) per share, as they were antidilutive (in shares) | 395,387 | 0 | 886,274 | ||||||||
Basic earnings (loss) per share (in dollars per share) | $ (1.74) | $ (0.21) | $ (0.06) | $ (0.18) | $ 1.53 | $ (0.17) | $ (0.50) | $ (0.84) | $ (2.20) | $ 0.04 | $ (3.58) |
Effect of dilutive securities (in dollars per share) | 0 | 0 | 0 | ||||||||
Diluted earnings (loss) per share (in dollars per share) | $ (1.74) | $ (0.21) | $ (0.06) | $ (0.18) | $ 1.52 | $ (0.17) | $ (0.50) | $ (0.84) | $ (2.20) | $ 0.04 | $ (3.58) |
Employee Retirement Benefit P_2
Employee Retirement Benefit Plan - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |||
401(K) plan costs | $ 1.8 | $ 1.8 | $ 2.2 |
Geographic Information - Narrat
Geographic Information - Narrative (Details) | 12 Months Ended |
Dec. 31, 2021segment | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 1 |
Minimum | |
Segment Reporting Information [Line Items] | |
Percentage of product sales to consolidated sales | 99.00% |
Geographic Information - Net Sa
Geographic Information - Net Sales to External Customers Based Upon Geographic Location (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Geographic Reporting Disclosure [Line Items] | |||||||||||
Sales | $ 100,204 | $ 79,169 | $ 82,110 | $ 76,331 | $ 92,953 | $ 70,736 | $ 60,564 | $ 79,515 | $ 337,814 | $ 303,768 | $ 381,765 |
United States and Canada | |||||||||||
Geographic Reporting Disclosure [Line Items] | |||||||||||
Sales | 127,661 | 119,769 | 151,646 | ||||||||
Americas-Other | |||||||||||
Geographic Reporting Disclosure [Line Items] | |||||||||||
Sales | 12,973 | 9,057 | 14,110 | ||||||||
Germany | |||||||||||
Geographic Reporting Disclosure [Line Items] | |||||||||||
Sales | 48,772 | 46,166 | 52,083 | ||||||||
Europe-Other | |||||||||||
Geographic Reporting Disclosure [Line Items] | |||||||||||
Sales | 55,577 | 45,224 | 70,196 | ||||||||
Japan | |||||||||||
Geographic Reporting Disclosure [Line Items] | |||||||||||
Sales | 25,997 | 4,998 | 33,361 | ||||||||
China | |||||||||||
Geographic Reporting Disclosure [Line Items] | |||||||||||
Sales | 40,808 | 31,748 | 32,934 | ||||||||
Asia-Other | |||||||||||
Geographic Reporting Disclosure [Line Items] | |||||||||||
Sales | $ 26,026 | $ 46,806 | $ 27,435 |
Geographic Information - Long L
Geographic Information - Long Lived Assets Attributed to Geographic Area (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | $ 129,906 | $ 93,933 | $ 91,129 |
United States | |||
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | 82,845 | 42,729 | 45,225 |
Americas-Other | |||
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | 9,794 | 10,415 | 10,889 |
Germany | |||
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | 24,415 | 26,671 | 26,295 |
Europe-Other | |||
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | 10,063 | 10,966 | 4,984 |
Japan | |||
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | 1,039 | 1,192 | 1,423 |
Asia-Other | |||
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | $ 1,750 | $ 1,960 | $ 2,313 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | ||
Renewal term | 15 years | |
Termination window | 3 months | |
Short term lease cost | $ 0.1 | $ 0.1 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Term of contract | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Term of contract | 10 years |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Operating lease cost | $ 7,805 | $ 8,506 |
Finance lease cost: | ||
Amortization of ROU assets | 295 | 307 |
Interest on lease liabilities | 20 | 29 |
Total finance lease cost | $ 315 | $ 336 |
Leases Supplemental Balance She
Leases Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Operating leases: | ||
Operating lease right-of-use asset | $ 22,543 | $ 26,107 |
Current operating lease liability | 5,601 | 5,557 |
Operating lease liability - less current portion | 18,538 | 21,985 |
Total operating lease liability | 24,139 | 27,542 |
Finance leases: | ||
Property and equipment, at cost | 1,380 | 1,813 |
Accumulated depreciation | (1,222) | (1,415) |
Property and equipment, net | 158 | 398 |
Current finance lease liability | 137 | 278 |
Finance lease liability - less current portion | 110 | 146 |
Total finance lease liability | $ 247 | $ 424 |
Weighted Average Remaining Lease Term (in years): | ||
Operating leases | 5 years 8 months 8 days | 6 years 6 months 18 days |
Finance leases | 2 years 1 month 13 days | 1 year 11 months 4 days |
Weighted Average Discount Rate: | ||
Operating leases | 5.67% | 5.66% |
Finance leases | 5.02% | 5.07% |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Lease liability | Lease liability |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Lease liability - less current portion | Lease liability - less current portion |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Liabilities | Liabilities |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, plant and equipment, net | Property, plant and equipment, net |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Lease liability | Lease liability |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Lease liability - less current portion | Lease liability - less current portion |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Liabilities | Liabilities |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 7,860 | $ 8,272 |
Operating cash flows from finance leases | 20 | 29 |
Financing cash flows from finance leases | 296 | 309 |
ROU assets obtained in exchange for lease obligations: | ||
Operating leases | $ 1,210 | $ 13,611 |
Leases - Maturities of lease li
Leases - Maturities of lease liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Operating leases | ||
2022 | $ 6,795 | |
2023 | 5,664 | |
2024 | 4,628 | |
2025 | 3,219 | |
2026 | 2,305 | |
Thereafter | 5,794 | |
Total lease payments | 28,405 | |
Less imputed interest | (4,266) | |
Total | 24,139 | $ 27,542 |
Finance leases | ||
2022 | 146 | |
2023 | 68 | |
2024 | 40 | |
2025 | 5 | |
2026 | 1 | |
Thereafter | 0 | |
Total lease payments | 260 | |
Less imputed interest | (13) | |
Total | $ 247 | $ 424 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - USD ($) $ in Thousands | Jun. 04, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||||
Acquisition of business, net of cash received | $ 33,800 | $ 6,036 | $ 0 | |
Holobuilder | ||||
Business Acquisition [Line Items] | ||||
Acquisition of business, net of cash received | $ 33,800 | |||
Acquisition and integration costs | $ 500 |
Business Combinations - Assets
Business Combinations - Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Jun. 04, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Liabilities assumed: | ||||
Goodwill | $ 82,096 | $ 57,541 | $ 49,704 | |
Holobuilder | ||||
Tangible assets acquired: | ||||
Accounts receivable | $ 375 | |||
Property, plant and equipment, net | 46 | |||
Other assets | 7 | |||
Total assets acquired | 428 | |||
Liabilities assumed: | ||||
Accounts payable and accrued liabilities | (55) | |||
Deferred revenue | (3,966) | |||
Total liabilities assumed | (4,021) | |||
Intangible assets | 10,670 | |||
Net assets acquired | 7,077 | |||
Goodwill | 26,723 | |||
Purchase price paid, net of cash acquired | 33,800 | |||
Property, plant and equipment, net | $ 46 |
Business Combinations - Acquire
Business Combinations - Acquired Intangibles (Details) - USD ($) $ in Thousands | Jun. 04, 2021 | Dec. 31, 2021 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life (Years) | 9 years | |
Holobuilder | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amount | $ 10,670 | |
Weighted Average Life (Years) | 7 years | |
Holobuilder | Brand | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amount | $ 370 | |
Weighted Average Life (Years) | 3 years | |
Holobuilder | Technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amount | $ 6,800 | |
Weighted Average Life (Years) | 5 years | |
Holobuilder | Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amount | $ 3,500 | |
Weighted Average Life (Years) | 12 years |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) | 3 Months Ended | 11 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2021USD ($) | Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($)headcount | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2022USD ($) | Feb. 13, 2020USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||||||||||||
Restructuring costs | $ 3,700,000 | $ 1,400,000 | $ 800,000 | $ 1,500,000 | $ 1,200,000 | $ 300,000 | $ 600,000 | $ 13,700,000 | $ 7,368,000 | $ 15,806,000 | $ 0 | ||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Photonics and 3D Design | |||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||
Restructuring noncash expense | 400,000 | ||||||||||||||
Proceeds from divestiture of businesses | 700,000 | ||||||||||||||
Restructuring Plan | |||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||
Restructuring costs | $ 49,000,000 | $ 15,456,000 | 7,368,000 | ||||||||||||
Restructuring reserve | 3,919,000 | 2,347,000 | 2,347,000 | 3,919,000 | 2,347,000 | $ 0 | |||||||||
Payments for restructuring | 13,109,000 | 5,796,000 | |||||||||||||
Minimum | Restructuring Plan | |||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||
Expected cost | 6,000,000 | 6,000,000 | |||||||||||||
Maximum | Restructuring Plan | |||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||
Expected cost | 10,000,000 | 10,000,000 | |||||||||||||
Other Restructuring | Forecast | |||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||
Restructuring cost, cash | $ 4,000,000 | ||||||||||||||
Other Restructuring | Restructuring Plan | |||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||
Expected number of positions eliminated | headcount | 500 | ||||||||||||||
Restructuring costs | 3,349,000 | 2,171,000 | |||||||||||||
Incurred cost | 15,800,000 | ||||||||||||||
Restructuring reserve | 477,000 | $ 866,000 | 866,000 | 477,000 | 866,000 | $ 0 | |||||||||
Payments for restructuring | $ 2,483,000 | 2,560,000 | |||||||||||||
Other Restructuring | Goodwill | Restructuring Plan | |||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||
Restructuring costs | 21,200,000 | ||||||||||||||
Other Restructuring | Excess and Obsolete Inventory | Restructuring Plan | |||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||
Restructuring costs | 12,800,000 | ||||||||||||||
Other Restructuring | Acquired Assets | Restructuring Plan | |||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||
Restructuring costs | 10,500,000 | ||||||||||||||
Other Restructuring | Capitalized Patents | Restructuring Plan | |||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||
Restructuring costs | 1,400,000 | ||||||||||||||
Other Restructuring | Other Assets | Restructuring Plan | |||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||
Restructuring costs | $ 3,400,000 | ||||||||||||||
Other Restructuring | Minimum | Restructuring Plan | |||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||
Expected cost | 7,400,000 | 7,400,000 | |||||||||||||
Other Restructuring | Maximum | Restructuring Plan | |||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||
Expected cost | $ 5,800,000 | $ 5,800,000 | |||||||||||||
Employee Severance | Restructuring Plan | |||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||
Restructuring costs | $ 13,100,000 |
Restructuring - Activity (Detai
Restructuring - Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 11 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Reserve [Roll Forward] | |||||||||||||
Additions charged to expense | $ 3,700 | $ 1,400 | $ 800 | $ 1,500 | $ 1,200 | $ 300 | $ 600 | $ 13,700 | $ 7,368 | $ 15,806 | $ 0 | ||
Restructuring Plan | |||||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||||
Beginning balance | 2,347 | $ 0 | 2,347 | ||||||||||
Additions charged to expense | $ 49,000 | 15,456 | 7,368 | ||||||||||
Cash payments | (13,109) | (5,796) | |||||||||||
Ending balance | 3,919 | 2,347 | 2,347 | 3,919 | 2,347 | ||||||||
Severance and other benefits | Restructuring Plan | |||||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||||
Beginning balance | 1,481 | 0 | 1,481 | ||||||||||
Additions charged to expense | 12,107 | 5,197 | |||||||||||
Cash payments | (10,626) | (3,236) | |||||||||||
Ending balance | 3,442 | 1,481 | 1,481 | 3,442 | 1,481 | ||||||||
Professional fees and other related charges | Restructuring Plan | |||||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||||
Beginning balance | $ 866 | 0 | 866 | ||||||||||
Additions charged to expense | 3,349 | 2,171 | |||||||||||
Cash payments | (2,483) | (2,560) | |||||||||||
Ending balance | $ 477 | $ 866 | $ 866 | $ 477 | $ 866 |
Quarterly Result of Operation_3
Quarterly Result of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Sales | $ 100,204 | $ 79,169 | $ 82,110 | $ 76,331 | $ 92,953 | $ 70,736 | $ 60,564 | $ 79,515 | $ 337,814 | $ 303,768 | $ 381,765 |
Gross profit | 55,707 | 42,331 | 45,482 | 40,407 | 50,780 | 36,298 | 28,896 | 43,873 | 183,927 | 159,847 | 198,132 |
Net income (loss) | $ (31,712) | $ (3,855) | $ (1,176) | $ (3,221) | $ 27,408 | $ (3,024) | $ (8,932) | $ (14,823) | $ (39,964) | $ 629 | $ (62,147) |
Net (loss) income per share: | |||||||||||
Basic earnings (loss) per share (in dollars per share) | $ (1.74) | $ (0.21) | $ (0.06) | $ (0.18) | $ 1.53 | $ (0.17) | $ (0.50) | $ (0.84) | $ (2.20) | $ 0.04 | $ (3.58) |
Diluted EPS (in dollars per share) | $ (1.74) | $ (0.21) | $ (0.06) | $ (0.18) | $ 1.52 | $ (0.17) | $ (0.50) | $ (0.84) | $ (2.20) | $ 0.04 | $ (3.58) |
Disaggregation of Revenue [Line Items] | |||||||||||
Restructuring costs | $ 3,700 | $ 1,400 | $ 800 | $ 1,500 | $ 1,200 | $ 300 | $ 600 | $ 13,700 | $ 7,368 | $ 15,806 | $ 0 |
Noncash disposition expense | $ 400 | ||||||||||
Government Contract | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Charges to income from price adjustment clauses | $ 600 |
Uncategorized Items - faro-2021
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2014-09 [Member] |