Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 01, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'MICREL INC | ' |
Entity Central Index Key | '0000932111 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 57,023,617 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $28,524 | $27,281 |
Restricted cash | 1,099 | 291 |
Short-term investments | 69,708 | 76,349 |
Accounts receivable, less allowances: 2013, $755; 2012, $812 | 31,894 | 27,683 |
Inventories | 45,102 | 42,256 |
Income taxes receivable | 4,367 | 4,090 |
Prepaid expenses and other | 1,602 | 2,355 |
Deferred income taxes | 22,369 | 19,811 |
Total current assets | 204,665 | 200,116 |
LONG-TERM INVESTMENTS | 4,212 | 4,159 |
PROPERTY, PLANT AND EQUIPMENT, NET | 58,764 | 60,692 |
GOODWILL | 8,501 | 6,076 |
INTANGIBLE ASSETS, NET | 11,795 | 7,906 |
DEFERRED INCOME TAXES | 697 | 16 |
OTHER ASSETS | 1,194 | 2,489 |
TOTAL | 289,828 | 281,454 |
CURRENT LIABILITIES: | ' | ' |
Accounts payable | 16,075 | 21,936 |
Deferred income on shipments to distributors | 32,493 | 25,768 |
Other current liabilities | 11,742 | 8,833 |
Total current liabilities | 60,310 | 56,537 |
LONG-TERM INCOME TAXES PAYABLE | 3,064 | 2,759 |
LONG- TERM DEFFERED INCOME TAXES | 1,283 | 1,054 |
OTHER LONG-TERM LIABILITIES | 55 | 0 |
Total liabilities | 64,712 | 60,350 |
COMMITMENTS AND CONTINGENCIES (Note 13) | ' | ' |
MICREL, INCORPORATED SHAREHOLDERS' EQUITY: | ' | ' |
Preferred stock, no par value - authorized: 5,000,000 shares; issued and outstanding: none | ' | ' |
Common stock, no par value - authorized: 250,000,000 shares; issued and outstanding: 2013 - 57,425,064 shares; 2012 - 58,153,665 shares | ' | ' |
Accumulated other comprehensive loss | -312 | -532 |
Retained earnings | 225,428 | 221,636 |
Total shareholders' equity | 225,116 | 221,104 |
TOTAL | $289,828 | $281,454 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2011 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Allowances for accounts receivable | $755 | $812 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | ' | 0 |
Preferred stock, shares outstanding | ' | ' |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 57,425,064 | 58,153,665 |
Common stock, shares outstanding | 57,425,064 | 58,153,665 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Income Statement [Abstract] | ' | ' | ' | ' | ||||
NET REVENUES | $58,169 | $62,928 | $177,073 | $187,778 | ||||
COST OF REVENUES | 28,698 | [1] | 29,661 | [1] | 85,440 | [1] | 86,201 | [1] |
GROSS PROFIT | 29,471 | 33,267 | 91,633 | 101,577 | ||||
OPERATING EXPENSES: | ' | ' | ' | ' | ||||
Research and development | 14,055 | [1] | 15,341 | [1] | 41,327 | [1] | 42,585 | [1] |
Selling, general and administrative | 11,184 | [1] | 11,847 | [1] | 34,478 | [1] | 35,186 | [1] |
Total operating expenses | 25,239 | 27,188 | 75,805 | 77,771 | ||||
INCOME FROM OPERATIONS | 4,232 | 6,079 | 15,828 | 23,806 | ||||
OTHER INCOME (EXPENSE): | ' | ' | ' | ' | ||||
Interest income | 121 | 166 | 373 | 554 | ||||
Interest expense | 0 | 47 | 0 | 0 | ||||
Other income (expense), net | -87 | 2 | -230 | -121 | ||||
Total other income, net | 34 | 215 | 143 | 433 | ||||
INCOME BEFORE INCOME TAXES AND NONCONTROLLING INTEREST | 4,266 | 6,294 | 15,971 | 24,239 | ||||
PROVISION FOR INCOME TAXES | 262 | 1,402 | 1,687 | 7,409 | ||||
NET INCOME | 4,004 | 4,892 | 14,284 | 16,830 | ||||
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | 0 | -9 | 0 | -13 | ||||
NET INCOME ATTRIBUTABLE TO MICREL, INCORPORATED SHAREHOLDERS | $4,004 | $4,883 | $14,284 | $16,817 | ||||
NET INCOME PER SHARE ATTRIBUTABLE TO MICREL, INCORPORATED SHAREHOLDERS: | ' | ' | ' | ' | ||||
Basic (Per Share) | $0.07 | $0.08 | $0.25 | $0.28 | ||||
Diluted (Per Share) | $0.07 | $0.08 | $0.24 | $0.28 | ||||
CASH DIVIDENDS DECLARED PER SHARE | $0.05 | $0.04 | $0.09 | $0.12 | ||||
WEIGHTED AVERAGE SHARES USED IN COMPUTING PER SHARE AMOUNTS: | ' | ' | ' | ' | ||||
Basic (Shares) | 57,752 | 59,242 | 58,107 | 60,096 | ||||
Diluted (Shares) | 58,440 | 59,889 | 58,826 | 60,774 | ||||
[1] | Share-based compensation expense included in:Cost of revenues$270B $274B $784B $840Research and development704B 646B 2,008B 2,203Selling, general and administrative789B 719B 2,284B 2,287 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Operations (Parenthetical) (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Share-based compensation expense included in: | ' | ' | ' | ' | ||||
Cost of revenues | $28,698 | [1] | $29,661 | [1] | $85,440 | [1] | $86,201 | [1] |
Research and development | 14,055 | [1] | 15,341 | [1] | 41,327 | [1] | 42,585 | [1] |
Selling, general and administrative | 11,184 | [1] | 11,847 | [1] | 34,478 | [1] | 35,186 | [1] |
Share-Based Compensation Expense | ' | ' | ' | ' | ||||
Share-based compensation expense included in: | ' | ' | ' | ' | ||||
Cost of revenues | 270 | 274 | 784 | 840 | ||||
Research and development | 704 | 646 | 2,008 | 2,203 | ||||
Selling, general and administrative | $789 | $719 | $2,284 | $2,287 | ||||
[1] | Share-based compensation expense included in:Cost of revenues$270B $274B $784B $840Research and development704B 646B 2,008B 2,203Selling, general and administrative789B 719B 2,284B 2,287 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Statement of Other Comprehensive Income [Abstract] | ' | ' | ' | ' | |
NET INCOME | $4,004 | $4,892 | $14,284 | $16,830 | |
Other comprehensive income: | ' | ' | ' | ' | |
Unrealized gains on investments | 39 | 57 | 315 | 226 | |
Reclassification adjustment for a realized loss on investment included in net income | 0 | 0 | 26 | [1] | 0 |
Income taxes | 14 | 22 | 121 | 87 | |
Other comprehensive income, net of tax | 25 | 35 | 220 | 139 | |
COMPREHENSIVE INCOME | 4,029 | 4,927 | 14,504 | 16,969 | |
Less: comprehensive income attributable to the noncontrolling interest | 0 | -9 | 0 | -13 | |
COMPREHENSIVE INCOME ATTRIBUTABLE TO MICREL, INCORPORATED SHAREHOLDERS | $4,029 | $4,918 | $14,504 | $16,956 | |
[1] | For the nine months ended September 30, 2013, a realized loss of $26,000 relating to short term investments was reclassified from accumulated other comprehensive income to other expense, net in the condensed consolidated statement of operations. |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income | $14,284 | $16,830 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 9,788 | 9,346 |
Share-based compensation expense | 5,076 | 5,330 |
Excess tax benefits from stock-based awards | -418 | -162 |
Impairment of technology | 0 | 1,000 |
Loss (gain) on disposal of assets | -33 | 1 |
Deferred income tax provision | -3,133 | -1,939 |
Changes in operating assets and liabilities | ' | ' |
Accounts receivable | -3,534 | -6,533 |
Inventories | -1,691 | -1,366 |
Income taxes receivable | -351 | 4,392 |
Prepaid expenses and other assets | -434 | -303 |
Accounts payable | -6,368 | 1,327 |
Income taxes payable | 172 | -442 |
Other current liabilities | 2,089 | 341 |
Deferred income on shipments to distributors | 6,725 | -1,202 |
Net cash provided by operating activities | 22,172 | 26,620 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Purchases of property, plant and equipment | -5,797 | -6,221 |
Purchases of intangible assets | -57 | 0 |
Purchases of investments | -50,079 | -41,408 |
Proceeds from sale and maturities of investments | 57,010 | 41,808 |
Change in restricted cash | -808 | 0 |
Net cash provided by (used in) investing activities | -5,841 | -22,260 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Repayments of debt | 0 | -282 |
Proceeds from the issuance of common stock | 3,743 | 2,730 |
Repurchases of common stock | -13,177 | -28,430 |
Payment of cash dividends | -5,371 | -7,135 |
Purchase of stock for withholding taxes on vested restricted stock | -701 | -454 |
Excess tax benefits from stock-based awards | 418 | 162 |
Net cash used in financing activities | -15,088 | -33,409 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 1,243 | -29,049 |
CASH AND CASH EQUIVALENTS - Beginning of period | 27,281 | 60,610 |
CASH AND CASH EQUIVALENTS - End of period | 28,524 | 31,561 |
PhaseLink Acquisition [Member] | ' | ' |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Purchase of PhaseLinkbs net assets, net of cash acquired | 0 | -16,439 |
Discera, Inc. [Member] | ' | ' |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Purchase of PhaseLinkbs net assets, net of cash acquired | ($6,110) | $0 |
Significant_Accounting_Policie
Significant Accounting Policies | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||
SIGNIFICANT ACCOUNTING POLICIES | ' | |||||||||||
SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Interim Financial Information - The accompanying condensed consolidated financial statements of Micrel, Incorporated and its wholly-owned subsidiaries (together “Micrel” or the “Company”) as of September 30, 2013 and for the three and nine months ended September 30, 2013 and 2012 are unaudited. In the opinion of management, the condensed consolidated financial statements include all adjustments (consisting only of normal recurring adjustments) that management considers necessary for a fair statement of its financial position, operating results, comprehensive income and cash flows for the interim periods presented. Operating results and cash flows for interim periods are not necessarily indicative of results for the entire year. The Condensed Consolidated Balance Sheet as of December 31, 2012, was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted (“GAAP”) in the United States of America. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. These financial statements should also be read in conjunction with the Company’s critical accounting policies included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 and those included in this Form 10-Q below. | ||||||||||||
Net Income Per Share - Basic net income per share is computed by dividing net income attributable to Micrel, Incorporated shareholders by the number of weighted-average common shares outstanding. Diluted net income per share reflects potential dilution from outstanding stock options using the treasury stock method and restricted stock units. Reconciliation of weighted-average shares used in computing basic and diluted net income per share attributable to Micrel, Incorporated shareholders is as follows (in thousands): | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Weighted average common shares outstanding | 57,752 | 59,242 | 58,107 | 60,096 | ||||||||
Dilutive effect of stock options and restricted stock units | 688 | 647 | 719 | 678 | ||||||||
Shares used in computing diluted net income per share | 58,440 | 59,889 | 58,826 | 60,774 | ||||||||
For the three and nine months ended September 30, 2013, 5.4 million and 5.3 million shares underlying stock options, respectively, have been excluded from the weighted-average number of common shares outstanding for the diluted net income per share computations as they were anti-dilutive. For the three and nine months September 30, 2012, 5.7 million and 5.5 million shares underlying stock options, respectively, have been excluded from the weighted-average number of common shares outstanding for the diluted net income per share computations as they were anti-dilutive. |
Recently_Issued_Accounting_Sta
Recently Issued Accounting Standards | 9 Months Ended |
Sep. 30, 2013 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
RECENTLY ISSUED ACCOUNTING STANDARDS | ' |
RECENTLY ISSUED ACCOUNTING STANDARDS | |
Effective January 1, 2013, the Company adopted the new guidance to improve the reporting of reclassifications out of accumulated other comprehensive income. The guidance requires an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under GAAP to be reclassified in its entirety to net income. For other amounts that are not required under GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under GAAP that provide addition detail about those amounts. The adoption did not have a material impact on the Company's consolidated financial condition or results of operations. | |
Effective January 1, 2013, the Company adopted the new guidance to reduce the complexity and cost of performing an evaluation of impairment of indefinite-lived intangible assets other than goodwill. Under the new guidance, an entity is permitted to first assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform the quantitative impairment test. The adoption did not have a material impact on the Company's consolidated financial condition or results of operations. | |
In March 2013, the Financial Accounting Standards Board ("FASB") issued an accounting standards update on foreign currency matters that provides additional guidance with respect to the reclassification into income of the cumulative translation adjustment (CTA) recorded in accumulated other comprehensive income associated with a parent company's ownership interest in a foreign entity. The standard differentiates between transactions occurring within a foreign entity and transactions/events affecting an investment in a foreign entity. For transactions within a foreign entity, the full CTA associated with the foreign entity would be reclassified into income only when the sale of a subsidiary or group of net assets within the foreign entity represents the substantially complete liquidation of that foreign entity. For transactions/events affecting an investment in a foreign entity (for example, control or ownership of shares in a foreign entity), the full CTA associated with the foreign entity would be reclassified into income only if the parent no longer has a controlling interest in that foreign entity as a result of the transaction/event. In addition, acquisitions of a foreign entity completed in stages will trigger release of the CTA associated with an equity method investment in that entity at the point a controlling interest in the foreign entity is obtained. The Company is required to adopt this standard for its interim and annual periods beginning after December 15, 2013. As of September 30, 2013, the Company has not recorded a CTA related to its ownership interests in a foreign entity. This standard would impact the Company's consolidated financial condition or results of operations only in the instance the Company records a CTA and an event or transaction described above occurs. | |
In July 2013, the FASB issued an accounting standards update on presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward (each, a “Carryforward”) exists. The standard requires that unrecognized tax benefits should be presented as a reduction to deferred tax assets for a Carryforward, if such Carryforward is required or expected to settle the additional income taxes in the event the uncertain tax position is disallowed. The standard also requires in situations that a Carryforward cannot be used or the deferred tax asset is not intended to be used for such purpose, the unrecognized tax benefit should be recorded as a liability and should not offset deferred tax assets. The Company is required to adopt this standard for its interim and annual periods beginning after December 15, 2013. The Company is currently evaluating the impact of adopting this guidance, but does not expect it to have a material impact on the Company's consolidated financial condition or results of operations. |
Acquisition_Acquisition
Acquisition Acquisition | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Business Combinations [Abstract] | ' | |||||||||||
Acquisition | ' | |||||||||||
ACQUISITION | ||||||||||||
On August 30, 2013, the Company signed a definitive agreement to acquire specific net assets of Discera, Inc. (“Discera”), a private company based in San Jose, California, which qualifies as an acquisition of a business for financial accounting purposes. The acquisition closed on September 9, 2013. The total consideration was approximately $7.1 million, plus $1.1 million assumed liabilities. Of the $7.1 million, $6.1 million was paid upon closing, and approximately $1.0 million was withheld to secure the indemnification obligations from the closing date through September 9, 2014. The objective of the acquisition is to complement and expand Micrel's high performance clock and timing product portfolio, as well as expand its MEMS (micro-electrical mechanical systems) capabilities. The addition of the Discera MEMS product line will also enhance Micrel's MEMS presence, intellectual property and capability. The Company has included the financial results of Discera in its condensed consolidated financial statements beginning on the acquisition date. Pro forma financial disclosures are not presented herein as the financial results of this acquisition are considered insignificant. | ||||||||||||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||||||||||
The Company accounted for the transaction using the acquisition method of accounting for business combinations and, accordingly, the consideration has been allocated to the tangible and intangible assets acquired and liabilities assumed on the basis of their respective estimated fair values on the acquisition date. For the three months ended September 30, 2013, acquisition costs of $173,000 were expensed as incurred. While the Company uses best estimates and assumptions as part of the purchase price allocation process to value assets acquired and liabilities assumed at the acquisition date, estimates and assumptions are subject to refinement. The Company’s allocation of the total purchase price is summarized below as of the date of acquisition (in thousands): | ||||||||||||
Accounts receivable | $ | 677 | ||||||||||
Inventories | 1,141 | |||||||||||
Other assets | 24 | |||||||||||
Property, plant and equipment | 1,165 | |||||||||||
Developed technology | 940 | |||||||||||
Customer relationships | 800 | |||||||||||
Trademarks | 100 | |||||||||||
Non-competition agreements | 40 | |||||||||||
In-process research and development | 890 | |||||||||||
Goodwill | 2,425 | |||||||||||
Liabilities | (1,090 | ) | ||||||||||
Total purchase consideration | $ | 7,112 | ||||||||||
Identifiable intangible assets | ||||||||||||
Fair values for the acquired developed technology, customer relationships, trademarks and non-competition agreements and in-process research and development (“IPR&D”) were determined based on various methods including excess earnings method, relief from royalty method and with-or-without method. The values of the developed technology and customer relationships will be amortized over an estimated useful life of 10 years. The non-competition agreements will be amortized over a one-year period. The values of trademarks will be amortized over 2 years. | ||||||||||||
The fair value of the acquired IPR&D was determined through estimates and valuation techniques based on the terms and details of the acquisition. As it was determined that the underlying projects had not reached technological feasibility at the date of acquisition, the amounts allocated to IPR&D will not be expensed until completion of the related projects. Upon the completion of development for each project, the acquired IPR&D will be amortized over its useful life. | ||||||||||||
The following table summarizes the identifiable intangible assets acquired as part of the acquisition (in thousands): | ||||||||||||
Fair Value | Accumulated | Net | ||||||||||
as of | Amortization | Carrying Amount | ||||||||||
Acquisition Date | as of | as of | ||||||||||
9-Sep-13 | 30-Sep-13 | 30-Sep-13 | ||||||||||
Developed technology | $ | 940 | $ | (10 | ) | $ | 930 | |||||
Customer relationships | 800 | (13 | ) | 787 | ||||||||
Trademarks | 100 | (6 | ) | 94 | ||||||||
Non-competition agreements | 40 | (3 | ) | 37 | ||||||||
In-process research and development | 890 | — | 890 | |||||||||
Total | $ | 2,770 | $ | (32 | ) | $ | 2,738 | |||||
Goodwill | ||||||||||||
Goodwill represents the excess of the estimated acquisition consideration over the fair value of the underlying net tangible and intangible assets. The Company’s primary reasons for the Discera acquisition were to complement Micrel's high performance clock and timing products, as well as expand its MEMS capabilities. The addition of the Discera MEMS product line will also enhance Micrel's MEMS presence and capability. Furthermore, the Discera technical team gives Micrel the intellectual property and technical know-how to pursue not only MEMS-based timing devices but also other types of MEMS devices. These significant factors were the basis for the recognition of goodwill. |
ShareBased_Compensation
Share-Based Compensation | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
SHARE-BASED COMPENSATION | ' | |||||||||||||||
SHARE-BASED COMPENSATION | ||||||||||||||||
Share-based compensation is measured at the grant date based on the fair value of the award and is recognized over the employee’s requisite service period. The following table summarizes total share-based compensation expense included in the Condensed Consolidated Statement of Operations (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Cost of revenues | $ | 270 | $ | 274 | $ | 784 | $ | 840 | ||||||||
Research and development | 704 | 646 | 2,008 | 2,203 | ||||||||||||
Selling, general and administrative | 789 | 719 | 2,284 | 2,287 | ||||||||||||
Pre-tax share-based compensation expense | 1,763 | 1,639 | 5,076 | 5,330 | ||||||||||||
Less income tax benefit | (565 | ) | (558 | ) | (1,667 | ) | (1,863 | ) | ||||||||
After tax impact of share-based compensation on net income | $ | 1,198 | $ | 1,081 | $ | 3,409 | $ | 3,467 | ||||||||
During the three months ended September 30, 2013 and 2012, the Company granted 191,400 and 512,380 stock options, respectively, at weighted average fair values of $2.79 and $3.05 per share, respectively. For the nine months ended September 30, 2013 and 2012, the Company granted 535,900 and 1,296,200 stock options, respectively, at weighted average fair values of $2.91 and $2.99 per share, respectively. The fair value of the Company’s stock options granted under the Company’s option plans was estimated at the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Expected term (years) | 5.8 | 5.8 | 5.9 | 5.8 | ||||||||||||
Stock volatility | 35 | % | 36 | % | 34.8 | % | 36.1 | % | ||||||||
Risk free interest rates | 1.7 | % | 0.8 | % | 1.4 | % | 1 | % | ||||||||
Dividends during expected terms | 2.2 | % | 1.5 | % | 1.8 | % | 1.6 | % | ||||||||
The Company also grants Restricted Stock Units (“RSUs”) to its employees. In the three months ended September 30, 2013 and 2012, the Company granted 207,520 and 123,537 RSUs, respectively, at weighted average fair values of $9.14 and $9.73, respectively. During the nine months ended September 30, 2013 and 2012, the Company granted 434,920 and 379,623 RSUs, respectively, at weighted average fair values of $9.49 and $9.75, respectively. | ||||||||||||||||
As of September 30, 2013, there was $14.8 million of total unrecognized share-based compensation related to non-vested awards which is expected to be recognized over a weighted-average period of 2.9 years. Total share-based compensation capitalized as part of inventory as of September 30, 2013 and December 31, 2012 was $153,000 and $139,000, respectively. | ||||||||||||||||
Under the Company’s Employee Stock Purchase Plan (“ESPP”), eligible employees are permitted to have salary withholdings to purchase shares of Common Stock at a price equal to 95% of the market value of the stock at the end of each three-month offer period, subject to an annual limitation. The ESPP is considered non-compensatory per current share-based compensation accounting guidelines. |
Investments
Investments | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||||||||||
INVESTMENTS | ' | |||||||||||||||||||||||||||||||
INVESTMENTS | ||||||||||||||||||||||||||||||||
Short-term investments represent the investment of cash in instruments that are available to fund current operations with remaining maturities of greater than three months on the date of purchase. Short-term investments as of September 30, 2013 primarily consisted of corporate debt securities, commercial paper and liquid municipal debt securities with maturities ranging from less than one month to less than two years and were classified as available-for-sale securities. Long-term investments as of September 30, 2013 consisted of auction rate notes secured by student loans and were classified as available-for-sale securities. Available-for-sale securities are stated at market value with unrealized gains and losses included in accumulated other comprehensive income. Unrealized credit losses are charged against income when a decline in the fair market value of an individual security is determined to be other than temporary. Realized gains and losses on investments are included in other income or expense. A summary of the Company’s short-term investments at September 30, 2013 and December 31, 2012 is as follows (in thousands): | ||||||||||||||||||||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | |||||||||||||||||||||||||||||||
Cost | Unrealized Gross | Unrealized Gross | Fair | Cost | Unrealized Gross | Unrealized Gross | Fair | |||||||||||||||||||||||||
Gains | Losses | Value | Gains | Losses | Value | |||||||||||||||||||||||||||
Municipal Debt Securities | $ | 16,530 | $ | — | $ | — | $ | 16,530 | $ | 12,520 | $ | — | $ | (116 | ) | $ | 12,404 | |||||||||||||||
Corporate Debt Securities | 36,726 | 2 | — | 36,728 | 26,575 | — | (139 | ) | 26,436 | |||||||||||||||||||||||
Commercial Paper | 16,447 | 3 | — | 16,450 | 18,464 | — | (2 | ) | 18,462 | |||||||||||||||||||||||
Certificates of Deposits | — | — | — | — | 19,047 | — | — | 19,047 | ||||||||||||||||||||||||
Total | $ | 69,703 | $ | 5 | $ | — | $ | 69,708 | $ | 76,606 | $ | — | $ | (257 | ) | $ | 76,349 | |||||||||||||||
The Company recorded a cumulative temporary gain of $3,000 net of tax ($5,000 pre-tax) for its short-term securities as of September 30, 2013 to accumulated other comprehensive income, a component of shareholders' equity. The change in the fair value of these securities is recorded to unrealized gains (losses) on investments in the condensed consolidated statements of comprehensive income. As of September 30, 2013, none of the Company’s short-term investments was in a continuous unrealized loss position for more than twelve months. | ||||||||||||||||||||||||||||||||
A summary of the Company’s long-term investments at September 30, 2013 and December 31, 2012 is as follows (in thousands): | ||||||||||||||||||||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | |||||||||||||||||||||||||||||||
Cost | Unrealized Gross | Unrealized Gross | Fair | Cost | Unrealized Gross | Unrealized Gross | Fair | |||||||||||||||||||||||||
Gains | Losses | Value | Gains | Losses | Value | |||||||||||||||||||||||||||
Auction Rate Securities | $ | 4,700 | $ | — | $ | (488 | ) | $ | 4,212 | $ | 4,700 | $ | — | $ | (541 | ) | $ | 4,159 | ||||||||||||||
As of September 30, 2013, the Company had auction rate notes with an amortized cost of $4.7 million and a fair value of $4.2 million. Auction rate notes are securities that are structured with short-term interest rate reset dates of generally less than ninety days, but with contractual maturities that can be in excess of ten years. At the end of each reset period, which occurs every seven or twenty eight days for the securities held by the Company, investors can sell or continue to hold the securities at par. As a result of sell orders exceeding buy orders, auctions for the student loan-backed notes held by the Company have failed and not resumed as of September 30, 2013. The principal associated with failed auctions will not be accessible until a successful auction occurs, a buyer is found outside of the auction process, the issuers redeem the securities, the issuers repay principal over time from cash flows prior to final maturity or final payments come due according to contractual maturities ranging from 19 to 34 years. As a result, the Company has classified all auction rate notes as long-term investments as of September 30, 2013 and December 31, 2012, and the auction rate notes have been in a continuous unrecognized loss position since 2008 when auctions began to fail. As a result of failed auctions, the notes bear interest at a predetermined maximum rate based on the credit rating of notes as determined by one or more nationally recognized statistical rating organizations. For the auction rate notes held by the Company as of September 30, 2013 and December 31, 2012, the maximum interest rate is generally one month LIBOR plus 1.5% or 2.5% based on the notes' rating as of that date. The Company has collected all interest payable on all of its auction-rate securities when due and expects to continue to do so in the future. The Company has not recognized an other than temporary impairment loss on the auction rate notes because it expects to recover the full amortized cost basis of the securities, i.e., a credit loss has not occurred, and it has the ability and intent to hold the investments until such time. | ||||||||||||||||||||||||||||||||
To determine the fair value of financial instruments, the Company uses a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are described below: | ||||||||||||||||||||||||||||||||
• | Level 1 - Quoted prices in active markets for identical assets or liabilities. | |||||||||||||||||||||||||||||||
• | Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||||||||||||||||||||||||||||||
• | Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |||||||||||||||||||||||||||||||
A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The Company's short-term investments are classified within Level 1 or Level 2 of the fair value hierarchy because they are valued using quoted market prices, broker or dealer quotations, or other significant observable inputs. | ||||||||||||||||||||||||||||||||
The types of instruments valued based on unobservable inputs include the auction rate securities held by the Company. Such instruments are classified within Level 3 of the fair value hierarchy and are recorded under long-term investments in the condensed consolidated balance sheets. The Company estimated the fair value of these auction rate securities using a discounted cash flow model incorporating assumptions that market participants would use in their estimates of fair value. Some of these assumptions include estimates for interest rates, timing and amount of cash flows and expected holding periods of the auction rate securities. | ||||||||||||||||||||||||||||||||
Financial assets measured at fair value on a recurring basis as of September 30, 2013 were as follows (in thousands): | ||||||||||||||||||||||||||||||||
Quoted Prices in | Significant Other | Significant | Total | |||||||||||||||||||||||||||||
Active Markets | Observable Inputs | Unobservable | ||||||||||||||||||||||||||||||
for Identical | Level 2 | Inputs | ||||||||||||||||||||||||||||||
Assets | Level 3 | |||||||||||||||||||||||||||||||
Level 1 | ||||||||||||||||||||||||||||||||
Money Market Funds (1) | $ | 14,179 | $ | — | $ | — | $ | 14,179 | ||||||||||||||||||||||||
Corporate Debt Securities (2) | — | 36,728 | — | 36,728 | ||||||||||||||||||||||||||||
Commercial Paper (2) | — | 16,450 | — | 16,450 | ||||||||||||||||||||||||||||
Municipal Debt Securities (2) | — | 16,530 | — | 16,530 | ||||||||||||||||||||||||||||
Auction rate notes (3) | — | — | 4,212 | 4,212 | ||||||||||||||||||||||||||||
Total | $ | 14,179 | $ | 69,708 | $ | 4,212 | $ | 88,099 | ||||||||||||||||||||||||
Financial assets measured at fair value on a recurring basis as of December 31, 2012 were as follows (in thousands): | ||||||||||||||||||||||||||||||||
Quoted Prices in | Significant Other | Significant | Total | |||||||||||||||||||||||||||||
Active Markets | Observable Inputs | Unobservable | ||||||||||||||||||||||||||||||
for Identical | Level 2 | Inputs | ||||||||||||||||||||||||||||||
Assets | Level 3 | |||||||||||||||||||||||||||||||
Level 1 | ||||||||||||||||||||||||||||||||
Money Market Funds (1) | $ | 13,845 | $ | — | $ | — | $ | 13,845 | ||||||||||||||||||||||||
Certificates of Deposits (2) | 19,047 | — | — | 19,047 | ||||||||||||||||||||||||||||
Corporate Debt Securities (2) | — | 26,436 | — | 26,436 | ||||||||||||||||||||||||||||
Commercial Paper (2) | — | 18,462 | — | 18,462 | ||||||||||||||||||||||||||||
Municipal Debt Securities (2) | — | 12,404 | — | 12,404 | ||||||||||||||||||||||||||||
Auction rate notes (3) | — | — | 4,159 | 4,159 | ||||||||||||||||||||||||||||
Total | $ | 32,892 | $ | 57,302 | $ | 4,159 | $ | 94,353 | ||||||||||||||||||||||||
__________ | ||||||||||||||||||||||||||||||||
(1) Included in cash and cash equivalents | ||||||||||||||||||||||||||||||||
(2) Included in short-term investments | ||||||||||||||||||||||||||||||||
(3) Included in long-term investments | ||||||||||||||||||||||||||||||||
There were no significant transfers between Level 1 and Level 2 of the fair value hierarchy. | ||||||||||||||||||||||||||||||||
The Company has used a combination of discounted cash flow models and observable transactions for similar securities to determine the estimated fair value of its investment in auction rate notes as of September 30, 2013 and December 31, 2012. The assumptions used in preparing the discounted cash flow model include estimates for interest rates, estimates for discount rates using yields of comparable traded instruments adjusted for illiquidity and other risk factors, amount of cash flows and expected holding periods of the auction rate notes. Based on this assessment of fair value, as of September 30, 2013, the Company determined there was a cumulative decline in the fair value of its auction rate notes and recorded a $317,000 net of tax ($488,000 pre-tax) temporary impairment of these securities to accumulated other comprehensive income, a component of shareholders’ equity. The change in the fair value of these securities is recorded to unrealized gains (losses) on investments in the condensed consolidated statements of comprehensive income. | ||||||||||||||||||||||||||||||||
For the nine months ended September 30, 2013, the changes in the Company’s Level 3 securities (consisting of auction rate notes) were as follows (in thousands): | ||||||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||||||
Measurements | ||||||||||||||||||||||||||||||||
Using Significant | ||||||||||||||||||||||||||||||||
Unobservable | ||||||||||||||||||||||||||||||||
Inputs | ||||||||||||||||||||||||||||||||
(Level 3) | ||||||||||||||||||||||||||||||||
Beginning balance, December 31, 2012 | $ | 4,159 | ||||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | |||||||||||||||||||||||||||||||
Total unrealized gains, before tax effect | 53 | |||||||||||||||||||||||||||||||
Settlements | — | |||||||||||||||||||||||||||||||
Ending balance, September 30, 2013 | $ | 4,212 | ||||||||||||||||||||||||||||||
Inventories
Inventories | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
INVENTORIES | ' | |||||||
INVENTORIES | ||||||||
Inventories consisted of the following (in thousands): | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Finished goods | $ | 13,338 | $ | 12,518 | ||||
Work in process | 30,195 | 28,133 | ||||||
Raw materials | 1,569 | 1,605 | ||||||
Total inventories | $ | 45,102 | $ | 42,256 | ||||
Property_Plant_and_Equipment
Property, Plant and Equipment | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
PROPERTY, PLANT AND EQUIPMENT | ' | |||||||
PROPERTY, PLANT AND EQUIPMENT | ||||||||
Property, plant and equipment consisted of the following (in thousands): | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Manufacturing equipment | $ | 178,566 | $ | 174,353 | ||||
Land | 8,101 | 8,101 | ||||||
Buildings and improvements | 54,129 | 53,792 | ||||||
Office furniture and research equipment | 21,557 | 20,241 | ||||||
262,353 | 256,487 | |||||||
Accumulated depreciation | (203,589 | ) | (195,795 | ) | ||||
Total property, plant and equipment, net | $ | 58,764 | $ | 60,692 | ||||
Depreciation expense for the three and nine months ended September 30, 2013 was $2.7 million and $8.3 million, respectively. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | ' | |||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | ||||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||
Goodwill represents the excess of the purchase price paid over the fair value of tangible and identifiable intangible net assets acquired in a business combination. | ||||||||||||||||||||||||
On April 2, 2012, the Company acquired PhaseLink and recorded $6.1 million of goodwill as the purchase price exceeded the fair value allocated to net tangible assets and identifiable intangible assets. On September 9, 2013, the Company acquired Discera and recorded $2.4 million of goodwill as the purchase price exceeded the fair value allocated to net tangible assets and identifiable intangible assets. The goodwill of both acquisitions has been assigned to the timing and communications reporting unit and will be reviewed annually in October or whenever events or circumstances occur which indicate that goodwill might be impaired. | ||||||||||||||||||||||||
The Company’s annual goodwill impairment assessment will include first performing a qualitative assessment. As part of this assessment, the Company will consider whether it is not more likely than not that the fair value is less than the carrying value of the reporting unit. If, after assessing the qualitative factors, a company determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying value, then performing the two-step impairment test is unnecessary. However, if the Company concludes otherwise, then it is required to perform the first step of the two-step goodwill impairment test. The first step requires a comparison of the fair value of the Company’s reporting unit to its net book value. If the fair value is greater, then no impairment is deemed to have occurred. If the fair value is less, then the second step must be performed to determine the amount, if any, of actual impairment. | ||||||||||||||||||||||||
Intangible Assets | ||||||||||||||||||||||||
The Company evaluates intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset may not be recoverable. An asset is considered impaired if its carrying amount exceeds the undiscounted future net cash flow that the asset is expected to generate. The process of evaluating the potential impairment of long-lived intangible assets is highly subjective and requires significant judgment. In estimating the fair value of these assets, the Company makes estimates and judgments about future revenues and cash flows. The Company’s forecasts will be based on assumptions that are consistent with the plans and estimates the Company is using to manage the business. Changes in these estimates could change the Company’s conclusion regarding impairment of the long-lived assets. | ||||||||||||||||||||||||
The following table sets forth the components of intangible assets as follows (in thousands): | ||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net | |||||||||||||||||||
Carrying Amount | Carrying Amount | |||||||||||||||||||||||
Developed technologies | $ | 7,443 | $ | (798 | ) | $ | 6,645 | $ | 4,400 | $ | (330 | ) | $ | 4,070 | ||||||||||
Customer relationships | 3,800 | (463 | ) | 3,337 | 3,000 | (225 | ) | 2,775 | ||||||||||||||||
Trademarks | 610 | (236 | ) | 374 | 510 | (115 | ) | 395 | ||||||||||||||||
Non-competition agreements | 450 | (311 | ) | 139 | 410 | (154 | ) | 256 | ||||||||||||||||
In-process research and development | 1,300 | — | 1,300 | 410 | — | 410 | ||||||||||||||||||
$ | 13,603 | $ | (1,808 | ) | $ | 11,795 | $ | 8,730 | $ | (824 | ) | $ | 7,906 | |||||||||||
The above intangible assets continue to be amortized over their estimated useful lives of 1 to 10 years using the straight-line method. Total intangible amortization expense for the three and nine months ended September 30, 2013 was $354,000 and $(984,000), respectively. | ||||||||||||||||||||||||
The estimated future amortization expense of intangible assets as of September 30, 2013 was as follows (in thousands): | ||||||||||||||||||||||||
Year Ending December 31, | ||||||||||||||||||||||||
2013 (remaining three months) | $ | 386 | ||||||||||||||||||||||
2014 | 1,357 | |||||||||||||||||||||||
2015 | 1,241 | |||||||||||||||||||||||
2016 | 1,208 | |||||||||||||||||||||||
2017 | 1,157 | |||||||||||||||||||||||
Thereafter | 6,446 | |||||||||||||||||||||||
$ | 11,795 | |||||||||||||||||||||||
Other_Current_Liabilities
Other Current Liabilities | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Other Liabilities Disclosure [Abstract] | ' | |||||||
OTHER CURRENT LIABILITIES | ' | |||||||
OTHER CURRENT LIABILITIES | ||||||||
Other current liabilities consisted of the following (in thousands): | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Accrued compensation | $ | 6,368 | $ | 4,167 | ||||
Accrued commissions | 2,725 | 1,918 | ||||||
Accrued workers compensation and health insurance | 944 | 865 | ||||||
All other current accrued liabilities | 1,705 | 1,883 | ||||||
Total other current liabilities | $ | 11,742 | $ | 8,833 | ||||
Borrowing_Arrangements
Borrowing Arrangements | 9 Months Ended |
Sep. 30, 2013 | |
Debt Disclosure [Abstract] | ' |
BORROWING ARRANGEMENTS | ' |
BORROWING ARRANGEMENTS | |
Under the terms of an unsecured credit facility with Bank of the West, the Company has a $5.0 million line of credit available for general working capital needs, which includes a $5.0 million letter of credit sub-facility including a $2.0 million foreign exchange sub-facility. In April 2013, an amendment was entered to amend certain terms of the credit agreement including an extension of the expiration date to April 30, 2015 and the deletion of a minimum effective tangible net worth covenant. Interest rates under the amended agreement are based on one of three interest rates, at the Company’s option: (1) a variable alternate base rate plus 1.0%, the alternate base rate being the greater of (x) Bank of the West’s prime rate, (y) the Fed Funds Rate plus 0.5% or (z) daily adjusted one-month LIBOR plus 1.0%; (2) floating one-month LIBOR plus 2.0% or (3) fixed LIBOR for one, two, three or six month periods, plus 2.0%. The agreement includes certain restrictive covenants and, as of September 30, 2013, the Company was in compliance with such covenants. | |
The Company's borrowing arrangements include a provision for the issuance of commercial or standby letters of credit by the bank on behalf of the Company. As of September 30, 2013, there was $325,000 in letters of credit outstanding. The letters of credit are issued to guarantee payments for the Company's workers compensation program. As of September 30, 2013, the Company had no borrowings under the line of credit. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2013 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' |
DERIVATIVE FINANCIAL INSTRUMENTS | ' |
DERIVATIVE FINANCIAL INSTRUMENTS | |
During the three and nine months ended September 30, 2013 and 2012, the Company was not party to any derivative instrument arrangements. At September 30, 2013, there were no derivative instrument contracts outstanding. |
Significant_Customers
Significant Customers | 9 Months Ended |
Sep. 30, 2013 | |
Risks and Uncertainties [Abstract] | ' |
SIGNIFICANT CUSTOMERS | ' |
SIGNIFICANT CUSTOMERS | |
During the nine months ended September 30, 2013, two worldwide distributors accounted for $54.3 million (31%) and $34.9 million (20%) of net revenues, respectively. During the nine months ended September 30, 2012, two worldwide distributors and one direct customer accounted for $47.5 million (25%), $30.7 million (16%) and $20.1 million (11%) of net revenues, respectively. These distributors operate globally and regionally to sell Micrel's products to many customers across various end markets. | |
At September 30, 2013, two worldwide distributors and one direct customer accounted for 34%, 14%, and 10% respectively, of total accounts receivable. At December 31, 2012, one worldwide distributor and an Asia-based distributor accounted for 28% and 14%, respectively, of total accounts receivable. |
Segment_Reporting
Segment Reporting | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
SEGMENT REPORTING | ' | |||||||||||||||
SEGMENT REPORTING | ||||||||||||||||
Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker. The Company has two reportable segments: standard products and other products, which consist primarily of custom and foundry products and revenues from the license of patents. The chief operating decision maker evaluates segment performance based on revenue. Accordingly, all expenses are considered corporate level activities and are not allocated to segments. Therefore, it is not practical to show profit or loss by reportable segments. Also, the chief operating decision maker does not assign assets or review discrete financial information for these segments. Consequently, it is not relevant to show assets by reportable segments. | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
Net Revenues by Segment | September 30, | September 30, | ||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Net Revenues: | ||||||||||||||||
Standard Products | $ | 56,185 | $ | 60,753 | $ | 171,469 | $ | 180,756 | ||||||||
Other Products | 1,984 | 2,175 | 5,604 | 7,022 | ||||||||||||
Total net revenues | $ | 58,169 | $ | 62,928 | $ | 177,073 | $ | 187,778 | ||||||||
As a Percentage of Total Net Revenues: | ||||||||||||||||
Standard Products | 97 | % | 97 | % | 97 | % | 96 | % | ||||||||
Other Products | 3 | 3 | 3 | 4 | ||||||||||||
Total net revenues | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
Litigation_and_Commitments_and
Litigation and Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
LITIGATION AND COMMITMENTS AND CONTINGENCIES | ' |
COMMITMENTS AND CONTINGENCIES | |
From time to time, claims have been filed by or have arisen against the Company in its normal course of business. Generally, litigation is subject to inherent uncertainties, and no assurance can be given that the Company will prevail in any particular lawsuit. Accordingly, litigation could result in substantial costs and diversion of resources and could have a material adverse effect on the Company’s financial condition, results of operations or cash flows. | |
As of September 30, 2013, the Company has not recorded any accrual for contingent liabilities associated with the legal proceedings described above based on the belief that liabilities, while possible, are not probable. Further, ranges of possible losses in these matters cannot be reasonably estimated at this time. |
Share_Repurchase_Program
Share Repurchase Program | 9 Months Ended |
Sep. 30, 2013 | |
Share Repurchase Program [Abstract] | ' |
SHARE REPURCHASE PROGRAM | ' |
SHARE REPURCHASE PROGRAM | |
On July 26, 2012, the Company announced that its Board of Directors authorized the repurchase of $30.0 million of the Company’s common stock. As of September 30, 2013, the total remaining authorized amount available for repurchase was $6.0 million. On October 24, 2013, the Company announced that its Board of Directors authorized the repurchase of another $30.0 million of the Company’s common stock. | |
Shares of common stock purchased pursuant to the repurchase program are cancelled from outstanding shares upon repurchase. Share repurchases are recorded as a reduction to common stock to the extent available. Any amounts repurchased which are in excess of the existing total common stock balance are recorded as a reduction of retained earnings. Share repurchases are intended to reduce the number of outstanding shares of common stock to increase shareholder value and offset dilution from the Company’s stock incentive plans and ESPP. During the nine months ended September 30, 2013, the Company repurchased 1,323,367 shares of its common stock for an aggregate price of $13.2 million. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
INCOME TAXES | |
The income tax provision for the three and nine months ended September 30, 2013, as a percentage of income before taxes was 6.1% and 10.6%, respectively. For the three months ended September 30, 2013, the Company recognized $775,000 of previously unrecognized tax benefits due to a lapse of the statute of limitations. For the nine months ended September 30, 2013, the income tax provision also included income tax benefits totaling $424,000 pertaining to the filing of 2012 foreign tax returns during the second quarter of 2013 and a $1.4 million benefit for 2012 research tax credits as a tax law was enacted on January 2, 2013 to retroactively reinstate the federal research and development tax credit to January 1, 2012. | |
The income tax provision for the three and nine months ended September 30, 2012, as a percentage of income before taxes, was 22.3% and 30.6%, respectively. For the three and nine months ended September 30, 2012, the Company recognized $661,000 of previously unrecognized tax benefits due to the lapse of statute of limitations. For the nine months ended September 30, 2012, the Company also recognized $176,000 of previously unrecognized tax benefits due to settlements with the tax authorities. In addition, the tax provision for this period excluded any benefits from the federal research and development credit which expired on December 31, 2011 and had not been reinstated as of September 30, 2012. | |
As of September 30, 2013, the gross amount of unrecognized tax benefits for uncertain tax positions was $11.8 million (including interest and penalties) and the net amount, reduced for the federal effects of potential state tax exposures, was $8.4 million. Included in the $8.4 million is $5.4 million which has not yet reduced income tax payments, and therefore, has been netted against non-current deferred tax assets. The remaining $3.0 million liability consisted of $2.9 million included in long-term income taxes payable and $103,000 netted against short-term income taxes receivable. If these uncertain tax positions are sustained upon tax authority audit, or otherwise become certain, the $3.0 million would favorably affect the Company’s tax provision in such future periods. The Company does not anticipate a significant change to the amounts of unrecognized tax benefits presented as long-term liability or reduction to long-term deferred tax assets in the next 12 months. | |
The Company continues to recognize interest and penalties related to income tax matters as part of the income tax provision. As of September 30, 2013 and December 31, 2012, the Company had $310,000 and $354,000, respectively, accrued for interest and none accrued for penalties in both periods. These accruals are included as a component of long-term income taxes payable. | |
The Company is required to file U.S. federal income tax returns as well as income tax returns in various states and foreign jurisdictions. The Company may be subject to examination by the Internal Revenue Service (“IRS”) for calendar years 2010 and forward. Significant state tax jurisdictions include California, Massachusetts and Texas, and generally, the Company is subject to routine examination for years 2006 and forward in these jurisdictions. In addition, any research and development credit carryforwards that were generated in prior years and utilized in these years may also be subject to examination by respective state taxing authorities. Generally, the Company is subject to routine examination for years 2005 and forward in various immaterial foreign tax jurisdictions in which it operates. | |
Deferred tax assets and liabilities result primarily from temporary differences between book and tax bases of assets and liabilities and state research and development credit carryforwards. The Company had net current deferred tax assets of $22.4 million and net long-term deferred tax liabilities of $586,000 as of September 30, 2013. The Company must regularly assess the likelihood that future taxable income levels will be sufficient to ultimately realize the tax benefits of these deferred tax assets. The Company currently believes that future taxable income levels will be sufficient to realize the tax benefits of these deferred tax assets and has not established a valuation allowance except for a valuation allowance of $8.5 million maintained against state deferred tax assets as of September 30, 2013. The recorded valuation allowance is primarily due to required income apportionment methods in California causing a shortfall of projected future taxable income to realize all available deferred tax assets in that jurisdiction. Should the Company determine that future realization of other recognized tax benefits is not more likely than not, additional valuation allowance would be established which would increase the Company's tax provision in the period of such determination. |
Dividends
Dividends | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Dividends, Common Stock [Abstract] | ' | ||||||||||||
DIVIDENDS | ' | ||||||||||||
DIVIDENDS | |||||||||||||
The Company's Board of Directors declared the following dividends during the periods presented (In thousands, except dividend per share): | |||||||||||||
Dividend Per Share | Total Amount | Record Date | Payment Date | ||||||||||
September 30, 2013 | |||||||||||||
25-Jul-13 | $ | 0.05 | $ | 2,890 | 14-Aug-13 | 28-Aug-13 | |||||||
April 25, 2013 | 0.0425 | 2,482 | 8-May-13 | 22-May-13 | |||||||||
December 7, 2012* | 0.0425 | 2,497 | 18-Dec-12 | 27-Dec-12 | |||||||||
September 30, 2012 | |||||||||||||
26-Jul-12 | $ | 0.04 | $ | 2,230 | 9-Aug-12 | 23-Aug-12 | |||||||
April 26, 2012 | 0.04 | 2,453 | May 9, 2012 | May 23, 2012 | |||||||||
26-Jan-12 | 0.04 | 2,451 | 8-Feb-12 | 22-Feb-12 | |||||||||
*The cash dividend declared on December 7, 2012 was an accelerated cash dividend in lieu of the quarterly dividend that the Company would have otherwise announced in January 2013 with its quarterly financial results for the fourth quarter of 2012, and that would have been paid in February of 2013. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
SUBSEQUENT EVENTS | ' |
SUBSEQUENT EVENTS | |
On October 24, 2013, the Company’s Board of Directors declared a cash dividend of $0.05 per outstanding share of common stock payable on November 22, 2013 to shareholders of record at the close of business on November 8, 2013. This dividend will be recorded in the fourth quarter of 2013 and is expected to be approximately $2.9 million. | |
On October 24, 2013, the Company also announced that its Board of Directors authorized the repurchase of another $30.0 million of the Company’s common stock. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Interim Financial Information | ' |
Interim Financial Information - The accompanying condensed consolidated financial statements of Micrel, Incorporated and its wholly-owned subsidiaries (together “Micrel” or the “Company”) as of September 30, 2013 and for the three and nine months ended September 30, 2013 and 2012 are unaudited. In the opinion of management, the condensed consolidated financial statements include all adjustments (consisting only of normal recurring adjustments) that management considers necessary for a fair statement of its financial position, operating results, comprehensive income and cash flows for the interim periods presented. Operating results and cash flows for interim periods are not necessarily indicative of results for the entire year. The Condensed Consolidated Balance Sheet as of December 31, 2012, was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted (“GAAP”) in the United States of America. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. These financial statements should also be read in conjunction with the Company’s critical accounting policies included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 and those included in this Form 10-Q below. | |
Net Income Per Common and Equivalent Share | ' |
For the three and nine months ended September 30, 2013, 5.4 million and 5.3 million shares underlying stock options, respectively, have been excluded from the weighted-average number of common shares outstanding for the diluted net income per share computations as they were anti-dilutive. For the three and nine months September 30, 2012, 5.7 million and 5.5 million shares underlying stock options, respectively, have been excluded from the weighted-average number of common shares outstanding for the diluted net income per share computations as they were anti-dilutive. | |
New Accounting Pronouncements | ' |
Effective January 1, 2013, the Company adopted the new guidance to improve the reporting of reclassifications out of accumulated other comprehensive income. The guidance requires an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under GAAP to be reclassified in its entirety to net income. For other amounts that are not required under GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under GAAP that provide addition detail about those amounts. The adoption did not have a material impact on the Company's consolidated financial condition or results of operations. | |
Effective January 1, 2013, the Company adopted the new guidance to reduce the complexity and cost of performing an evaluation of impairment of indefinite-lived intangible assets other than goodwill. Under the new guidance, an entity is permitted to first assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform the quantitative impairment test. The adoption did not have a material impact on the Company's consolidated financial condition or results of operations. | |
In March 2013, the Financial Accounting Standards Board ("FASB") issued an accounting standards update on foreign currency matters that provides additional guidance with respect to the reclassification into income of the cumulative translation adjustment (CTA) recorded in accumulated other comprehensive income associated with a parent company's ownership interest in a foreign entity. The standard differentiates between transactions occurring within a foreign entity and transactions/events affecting an investment in a foreign entity. For transactions within a foreign entity, the full CTA associated with the foreign entity would be reclassified into income only when the sale of a subsidiary or group of net assets within the foreign entity represents the substantially complete liquidation of that foreign entity. For transactions/events affecting an investment in a foreign entity (for example, control or ownership of shares in a foreign entity), the full CTA associated with the foreign entity would be reclassified into income only if the parent no longer has a controlling interest in that foreign entity as a result of the transaction/event. In addition, acquisitions of a foreign entity completed in stages will trigger release of the CTA associated with an equity method investment in that entity at the point a controlling interest in the foreign entity is obtained. The Company is required to adopt this standard for its interim and annual periods beginning after December 15, 2013. As of September 30, 2013, the Company has not recorded a CTA related to its ownership interests in a foreign entity. This standard would impact the Company's consolidated financial condition or results of operations only in the instance the Company records a CTA and an event or transaction described above occurs. | |
In July 2013, the FASB issued an accounting standards update on presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward (each, a “Carryforward”) exists. The standard requires that unrecognized tax benefits should be presented as a reduction to deferred tax assets for a Carryforward, if such Carryforward is required or expected to settle the additional income taxes in the event the uncertain tax position is disallowed. The standard also requires in situations that a Carryforward cannot be used or the deferred tax asset is not intended to be used for such purpose, the unrecognized tax benefit should be recorded as a liability and should not offset deferred tax assets. The Company is required to adopt this standard for its interim and annual periods beginning after December 15, 2013. The Company is currently evaluating the impact of adopting this guidance, but does not expect it to have a material impact on the Company's consolidated financial condition or results of operations. |
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||
Reconciliation of weighted-average shares used in computing net income per share | ' | |||||||||||
Reconciliation of weighted-average shares used in computing basic and diluted net income per share attributable to Micrel, Incorporated shareholders is as follows (in thousands): | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Weighted average common shares outstanding | 57,752 | 59,242 | 58,107 | 60,096 | ||||||||
Dilutive effect of stock options and restricted stock units | 688 | 647 | 719 | 678 | ||||||||
Shares used in computing diluted net income per share | 58,440 | 59,889 | 58,826 | 60,774 | ||||||||
Acquisition_Acquisition_Tables
Acquisition Acquisition (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Business Combinations [Abstract] | ' | |||||||||||
Finite-Lived and Indefinite-Lived Intangible Assets [Table Text Block] | ' | |||||||||||
The following table summarizes the identifiable intangible assets acquired as part of the acquisition (in thousands): | ||||||||||||
Fair Value | Accumulated | Net | ||||||||||
as of | Amortization | Carrying Amount | ||||||||||
Acquisition Date | as of | as of | ||||||||||
9-Sep-13 | 30-Sep-13 | 30-Sep-13 | ||||||||||
Developed technology | $ | 940 | $ | (10 | ) | $ | 930 | |||||
Customer relationships | 800 | (13 | ) | 787 | ||||||||
Trademarks | 100 | (6 | ) | 94 | ||||||||
Non-competition agreements | 40 | (3 | ) | 37 | ||||||||
In-process research and development | 890 | — | 890 | |||||||||
Total | $ | 2,770 | $ | (32 | ) | $ | 2,738 | |||||
Acquisition, Purchase Price Allocation | ' | |||||||||||
The Company’s allocation of the total purchase price is summarized below as of the date of acquisition (in thousands): | ||||||||||||
Accounts receivable | $ | 677 | ||||||||||
Inventories | 1,141 | |||||||||||
Other assets | 24 | |||||||||||
Property, plant and equipment | 1,165 | |||||||||||
Developed technology | 940 | |||||||||||
Customer relationships | 800 | |||||||||||
Trademarks | 100 | |||||||||||
Non-competition agreements | 40 | |||||||||||
In-process research and development | 890 | |||||||||||
Goodwill | 2,425 | |||||||||||
Liabilities | (1,090 | ) | ||||||||||
Total purchase consideration | $ | 7,112 | ||||||||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Share-based compensation expense | ' | |||||||||||||||
The following table summarizes total share-based compensation expense included in the Condensed Consolidated Statement of Operations (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Cost of revenues | $ | 270 | $ | 274 | $ | 784 | $ | 840 | ||||||||
Research and development | 704 | 646 | 2,008 | 2,203 | ||||||||||||
Selling, general and administrative | 789 | 719 | 2,284 | 2,287 | ||||||||||||
Pre-tax share-based compensation expense | 1,763 | 1,639 | 5,076 | 5,330 | ||||||||||||
Less income tax benefit | (565 | ) | (558 | ) | (1,667 | ) | (1,863 | ) | ||||||||
After tax impact of share-based compensation on net income | $ | 1,198 | $ | 1,081 | $ | 3,409 | $ | 3,467 | ||||||||
Stock options granted under the Company's option plans | ' | |||||||||||||||
The fair value of the Company’s stock options granted under the Company’s option plans was estimated at the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Expected term (years) | 5.8 | 5.8 | 5.9 | 5.8 | ||||||||||||
Stock volatility | 35 | % | 36 | % | 34.8 | % | 36.1 | % | ||||||||
Risk free interest rates | 1.7 | % | 0.8 | % | 1.4 | % | 1 | % | ||||||||
Dividends during expected terms | 2.2 | % | 1.5 | % | 1.8 | % | 1.6 | % |
Investments_Tables
Investments (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||||||||||
Summary of short-term investments | ' | |||||||||||||||||||||||||||||||
A summary of the Company’s long-term investments at September 30, 2013 and December 31, 2012 is as follows (in thousands): | ||||||||||||||||||||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | |||||||||||||||||||||||||||||||
Cost | Unrealized Gross | Unrealized Gross | Fair | Cost | Unrealized Gross | Unrealized Gross | Fair | |||||||||||||||||||||||||
Gains | Losses | Value | Gains | Losses | Value | |||||||||||||||||||||||||||
Auction Rate Securities | $ | 4,700 | $ | — | $ | (488 | ) | $ | 4,212 | $ | 4,700 | $ | — | $ | (541 | ) | $ | 4,159 | ||||||||||||||
A summary of the Company’s short-term investments at September 30, 2013 and December 31, 2012 is as follows (in thousands): | ||||||||||||||||||||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | |||||||||||||||||||||||||||||||
Cost | Unrealized Gross | Unrealized Gross | Fair | Cost | Unrealized Gross | Unrealized Gross | Fair | |||||||||||||||||||||||||
Gains | Losses | Value | Gains | Losses | Value | |||||||||||||||||||||||||||
Municipal Debt Securities | $ | 16,530 | $ | — | $ | — | $ | 16,530 | $ | 12,520 | $ | — | $ | (116 | ) | $ | 12,404 | |||||||||||||||
Corporate Debt Securities | 36,726 | 2 | — | 36,728 | 26,575 | — | (139 | ) | 26,436 | |||||||||||||||||||||||
Commercial Paper | 16,447 | 3 | — | 16,450 | 18,464 | — | (2 | ) | 18,462 | |||||||||||||||||||||||
Certificates of Deposits | — | — | — | — | 19,047 | — | — | 19,047 | ||||||||||||||||||||||||
Total | $ | 69,703 | $ | 5 | $ | — | $ | 69,708 | $ | 76,606 | $ | — | $ | (257 | ) | $ | 76,349 | |||||||||||||||
Schedule of financial assets measured at fair value on a recurring basis | ' | |||||||||||||||||||||||||||||||
Financial assets measured at fair value on a recurring basis as of September 30, 2013 were as follows (in thousands): | ||||||||||||||||||||||||||||||||
Quoted Prices in | Significant Other | Significant | Total | |||||||||||||||||||||||||||||
Active Markets | Observable Inputs | Unobservable | ||||||||||||||||||||||||||||||
for Identical | Level 2 | Inputs | ||||||||||||||||||||||||||||||
Assets | Level 3 | |||||||||||||||||||||||||||||||
Level 1 | ||||||||||||||||||||||||||||||||
Money Market Funds (1) | $ | 14,179 | $ | — | $ | — | $ | 14,179 | ||||||||||||||||||||||||
Corporate Debt Securities (2) | — | 36,728 | — | 36,728 | ||||||||||||||||||||||||||||
Commercial Paper (2) | — | 16,450 | — | 16,450 | ||||||||||||||||||||||||||||
Municipal Debt Securities (2) | — | 16,530 | — | 16,530 | ||||||||||||||||||||||||||||
Auction rate notes (3) | — | — | 4,212 | 4,212 | ||||||||||||||||||||||||||||
Total | $ | 14,179 | $ | 69,708 | $ | 4,212 | $ | 88,099 | ||||||||||||||||||||||||
Financial assets measured at fair value on a recurring basis as of December 31, 2012 were as follows (in thousands): | ||||||||||||||||||||||||||||||||
Quoted Prices in | Significant Other | Significant | Total | |||||||||||||||||||||||||||||
Active Markets | Observable Inputs | Unobservable | ||||||||||||||||||||||||||||||
for Identical | Level 2 | Inputs | ||||||||||||||||||||||||||||||
Assets | Level 3 | |||||||||||||||||||||||||||||||
Level 1 | ||||||||||||||||||||||||||||||||
Money Market Funds (1) | $ | 13,845 | $ | — | $ | — | $ | 13,845 | ||||||||||||||||||||||||
Certificates of Deposits (2) | 19,047 | — | — | 19,047 | ||||||||||||||||||||||||||||
Corporate Debt Securities (2) | — | 26,436 | — | 26,436 | ||||||||||||||||||||||||||||
Commercial Paper (2) | — | 18,462 | — | 18,462 | ||||||||||||||||||||||||||||
Municipal Debt Securities (2) | — | 12,404 | — | 12,404 | ||||||||||||||||||||||||||||
Auction rate notes (3) | — | — | 4,159 | 4,159 | ||||||||||||||||||||||||||||
Total | $ | 32,892 | $ | 57,302 | $ | 4,159 | $ | 94,353 | ||||||||||||||||||||||||
__________ | ||||||||||||||||||||||||||||||||
(1) Included in cash and cash equivalents | ||||||||||||||||||||||||||||||||
(2) Included in short-term investments | ||||||||||||||||||||||||||||||||
(3) Included in long-term investments | ||||||||||||||||||||||||||||||||
Schedule of changes in Level 3 securities | ' | |||||||||||||||||||||||||||||||
For the nine months ended September 30, 2013, the changes in the Company’s Level 3 securities (consisting of auction rate notes) were as follows (in thousands): | ||||||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||||||
Measurements | ||||||||||||||||||||||||||||||||
Using Significant | ||||||||||||||||||||||||||||||||
Unobservable | ||||||||||||||||||||||||||||||||
Inputs | ||||||||||||||||||||||||||||||||
(Level 3) | ||||||||||||||||||||||||||||||||
Beginning balance, December 31, 2012 | $ | 4,159 | ||||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | |||||||||||||||||||||||||||||||
Total unrealized gains, before tax effect | 53 | |||||||||||||||||||||||||||||||
Settlements | — | |||||||||||||||||||||||||||||||
Ending balance, September 30, 2013 | $ | 4,212 | ||||||||||||||||||||||||||||||
Inventories_Tables
Inventories (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories consisted of the following (in thousands): | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Finished goods | $ | 13,338 | $ | 12,518 | ||||
Work in process | 30,195 | 28,133 | ||||||
Raw materials | 1,569 | 1,605 | ||||||
Total inventories | $ | 45,102 | $ | 42,256 | ||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, plant and equipment | ' | |||||||
Property, plant and equipment consisted of the following (in thousands): | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Manufacturing equipment | $ | 178,566 | $ | 174,353 | ||||
Land | 8,101 | 8,101 | ||||||
Buildings and improvements | 54,129 | 53,792 | ||||||
Office furniture and research equipment | 21,557 | 20,241 | ||||||
262,353 | 256,487 | |||||||
Accumulated depreciation | (203,589 | ) | (195,795 | ) | ||||
Total property, plant and equipment, net | $ | 58,764 | $ | 60,692 | ||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
Schedule of goodwill and intangible assets | ' | |||||||||||||||||||||||
The following table sets forth the components of intangible assets as follows (in thousands): | ||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net | |||||||||||||||||||
Carrying Amount | Carrying Amount | |||||||||||||||||||||||
Developed technologies | $ | 7,443 | $ | (798 | ) | $ | 6,645 | $ | 4,400 | $ | (330 | ) | $ | 4,070 | ||||||||||
Customer relationships | 3,800 | (463 | ) | 3,337 | 3,000 | (225 | ) | 2,775 | ||||||||||||||||
Trademarks | 610 | (236 | ) | 374 | 510 | (115 | ) | 395 | ||||||||||||||||
Non-competition agreements | 450 | (311 | ) | 139 | 410 | (154 | ) | 256 | ||||||||||||||||
In-process research and development | 1,300 | — | 1,300 | 410 | — | 410 | ||||||||||||||||||
$ | 13,603 | $ | (1,808 | ) | $ | 11,795 | $ | 8,730 | $ | (824 | ) | $ | 7,906 | |||||||||||
Schedule of future amortization expenses | ' | |||||||||||||||||||||||
. | ||||||||||||||||||||||||
The estimated future amortization expense of intangible assets as of September 30, 2013 was as follows (in thousands): | ||||||||||||||||||||||||
Year Ending December 31, | ||||||||||||||||||||||||
2013 (remaining three months) | $ | 386 | ||||||||||||||||||||||
2014 | 1,357 | |||||||||||||||||||||||
2015 | 1,241 | |||||||||||||||||||||||
2016 | 1,208 | |||||||||||||||||||||||
2017 | 1,157 | |||||||||||||||||||||||
Thereafter | 6,446 | |||||||||||||||||||||||
$ | 11,795 | |||||||||||||||||||||||
Other_Current_Liabilities_Tabl
Other Current Liabilities (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Other Liabilities Disclosure [Abstract] | ' | |||||||
Schedule of other current liabilities | ' | |||||||
Other current liabilities consisted of the following (in thousands): | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Accrued compensation | $ | 6,368 | $ | 4,167 | ||||
Accrued commissions | 2,725 | 1,918 | ||||||
Accrued workers compensation and health insurance | 944 | 865 | ||||||
All other current accrued liabilities | 1,705 | 1,883 | ||||||
Total other current liabilities | $ | 11,742 | $ | 8,833 | ||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Net Revenues by Segment | ' | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
Net Revenues by Segment | September 30, | September 30, | ||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Net Revenues: | ||||||||||||||||
Standard Products | $ | 56,185 | $ | 60,753 | $ | 171,469 | $ | 180,756 | ||||||||
Other Products | 1,984 | 2,175 | 5,604 | 7,022 | ||||||||||||
Total net revenues | $ | 58,169 | $ | 62,928 | $ | 177,073 | $ | 187,778 | ||||||||
As a Percentage of Total Net Revenues: | ||||||||||||||||
Standard Products | 97 | % | 97 | % | 97 | % | 96 | % | ||||||||
Other Products | 3 | 3 | 3 | 4 | ||||||||||||
Total net revenues | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
Significant_Accounting_Policie3
Significant Accounting Policies (Details) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Reconciliation of weighted-average shares used in computing net income per share | ' | ' | ' | ' |
Weighted average common shares outstanding | 57,752 | 59,242 | 58,107 | 60,096 |
Dilutive effect of stock options and restricted stock units | 688 | 647 | 719 | 678 |
Shares used in computing diluted net income per share | 58,440 | 59,889 | 58,826 | 60,774 |
Significant_Accounting_Policie4
Significant Accounting Policies (Details Textual) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Significant Accounting Policies (Textual) [Abstract] | ' | ' | ' | ' |
Stock options excluded from the weighted-average number of common shares outstanding for the diluted net income per share computations as they were anti-dilutive | 5.4 | 5.7 | 5.3 | 5.5 |
Acquisition_Acquisition_Textua
Acquisition Acquisition Textual (Details) (USD $) | 3 Months Ended | 0 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 09, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Discera, Inc. [Member] | Developed Technology and Customer Relationship [Member] | Noncompete Agreements [Member] | Trademarks [Member] | ||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Business Combination, Consideration Transferred | ' | $7,100,000 | ' | ' | ' |
Business Acquisition, Cost of Acquired Entity, Liabilities Incurred | ' | 1,100,000 | ' | ' | ' |
Payments to Acquire Businesses, Gross | ' | 6,100,000 | ' | ' | ' |
Business Combination, Indemnification Assets, Amount as of Acquisition Date | ' | 1,000,000 | ' | ' | ' |
Business Combination, Acquisition Related Costs | $173,000 | ' | ' | ' | ' |
Identafiable intangible assets estimated useful life | ' | ' | '10 years | '1 year | '2 years |
Acquisition_Acquisitions_Detai
Acquisition Acquisitions (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 09, 2013 | Sep. 30, 2013 | Sep. 09, 2013 | Sep. 30, 2013 | Sep. 09, 2013 | Sep. 30, 2013 | Sep. 09, 2013 | Sep. 30, 2013 | Sep. 09, 2013 | Sep. 30, 2013 | Sep. 09, 2013 |
In Thousands, unless otherwise specified | Developed Technology Rights [Member] | Developed Technology Rights [Member] | Customer Relationships [Member] | Customer Relationships [Member] | Trademarks [Member] | Trademarks [Member] | Noncompete Agreements [Member] | Noncompete Agreements [Member] | Discera, Inc. [Member] | Discera, Inc. [Member] | Discera, Inc. [Member] | Discera, Inc. [Member] | Discera, Inc. [Member] | Discera, Inc. [Member] | Discera, Inc. [Member] | Discera, Inc. [Member] | Discera, Inc. [Member] | Discera, Inc. [Member] | In Process Research and Development [Member] | In Process Research and Development [Member] | ||
Developed Technology Rights [Member] | Developed Technology Rights [Member] | Customer Relationships [Member] | Customer Relationships [Member] | Trademarks [Member] | Trademarks [Member] | Noncompete Agreements [Member] | Noncompete Agreements [Member] | Discera, Inc. [Member] | Discera, Inc. [Member] | |||||||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $677 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Inventories | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,141 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,165 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finite lived intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 940 | ' | 800 | ' | 100 | ' | 40 | ' | ' | ' |
In-process research and development | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 890 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | 8,501 | 6,076 | ' | ' | ' | ' | ' | ' | ' | ' | 2,425 | 2,400 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,090 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total purchase consideration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,112 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Fair Value as of Acquisition Date September 9, 2013 | 13,603 | 8,730 | 7,443 | 4,400 | 3,800 | 3,000 | 610 | 510 | 450 | 410 | ' | ' | ' | 940 | ' | 800 | ' | 100 | ' | 40 | ' | ' |
Finite-Lived Intangible Assets, Accumulated Amortization as of September 30, 2013 | -1,808 | -824 | -798 | -330 | -463 | -225 | -236 | -115 | -311 | -154 | -32 | ' | -10 | ' | -13 | ' | -6 | ' | -3 | ' | ' | ' |
Finite-Lived Intangible Assets, Net Carrying Amount as of September 30, 2013 | 11,795 | 7,906 | 6,645 | 4,070 | 3,337 | 2,775 | 374 | 395 | 139 | 256 | ' | ' | 930 | ' | 787 | ' | 94 | ' | 37 | ' | ' | ' |
In-process research and development, Fair Value as of Acquisition Date September 9, 2013 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 890 | 890 |
Total intangible assets, Fair Value as of Acquisition Date September 9, 2013 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,770 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible Assets, Net Carrying Amount as of September 30, 2013 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,738 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
ShareBased_Compensation_Detail
Share-Based Compensation (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Share-based compensation expense | ' | ' | ' | ' |
Pre-tax share-based compensation expense | $1,763 | $1,639 | $5,076 | $5,330 |
Less income tax effect | -565 | -558 | -1,667 | -1,863 |
Net share-based compensation expense | 1,198 | 1,081 | 3,409 | 3,467 |
Cost of revenues [Member] | ' | ' | ' | ' |
Share-based compensation expense | ' | ' | ' | ' |
Pre-tax share-based compensation expense | 270 | 274 | 784 | 840 |
Research and development [Member] | ' | ' | ' | ' |
Share-based compensation expense | ' | ' | ' | ' |
Pre-tax share-based compensation expense | 704 | 646 | 2,008 | 2,203 |
Selling, general and administrative [Member] | ' | ' | ' | ' |
Share-based compensation expense | ' | ' | ' | ' |
Pre-tax share-based compensation expense | $789 | $719 | $2,284 | $2,287 |
ShareBased_Compensation_Detail1
Share-Based Compensation (Details 1) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Stock options granted under the Company's option plans | ' | ' | ' | ' |
Expected term (years) | '5 years 9 months 6 days | '5 years 9 months 6 days | '5 years 11 months 6 days | '5 years 9 months 6 days |
Stock volatility | 35.00% | 36.00% | 34.80% | 36.10% |
Risk free interest rates | 1.70% | 0.80% | 1.40% | 1.00% |
Dividends during expected terms | 2.20% | 1.50% | 1.80% | 1.60% |
ShareBased_Compensation_Detail2
Share-Based Compensation (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Share-Based Compensation (Textual) [Abstract] | ' | ' | ' | ' | ' |
Stock options granted | 191,400 | 512,380 | 535,900 | 1,296,200 | ' |
Weighted average fair values of options granted | $2.79 | $3.05 | $2.91 | $2.99 | ' |
Unrecognized share-based compensation related to non-vested stock option awards | $14,800,000 | ' | $14,800,000 | ' | ' |
Weighted-average period for unrecognized share-based compensation | ' | ' | '2 years 11 months 12 days | ' | ' |
Total share-based compensation capitalized as part of inventory | $153,000 | ' | $153,000 | ' | $139,000 |
Purchase shares of Common Stock with respect to market value of stock | 95.00% | ' | ' | ' | ' |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' | ' | ' |
Share-Based Compensation (Textual) [Abstract] | ' | ' | ' | ' | ' |
Restricted Stock Units granted | 207,520 | 123,537 | 434,920 | 379,623 | ' |
Weighted average fair values of Restricted Stock Units granted | $9.14 | $9.73 | $9.49 | $9.75 | ' |
Investments_Details
Investments (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Short Term Investments Location [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | $69,703 | $76,606 |
Gross Gains | 5 | ' |
Gross Losses | ' | -257 |
Fair Value | 69,708 | 76,349 |
Short Term Investments Location [Member] | Corporate Debt Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | 36,726 | 26,575 |
Gross Gains | 2 | ' |
Gross Losses | ' | -139 |
Fair Value | 36,728 | 26,436 |
Short Term Investments Location [Member] | Commercial Paper [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | 16,447 | 18,464 |
Gross Gains | 3 | ' |
Gross Losses | ' | -2 |
Fair Value | 16,450 | 18,462 |
Short Term Investments Location [Member] | Municipal Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | 16,530 | 12,520 |
Gross Gains | ' | ' |
Gross Losses | ' | -116 |
Fair Value | 16,530 | 12,404 |
Short Term Investments Location [Member] | Certificates of Deposits [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | ' | 19,047 |
Gross Gains | ' | ' |
Fair Value | ' | 19,047 |
Long Term Investments [Member] | Auction Rate Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | 4,700 | 4,700 |
Gross Gains | ' | ' |
Gross Losses | -488 | -541 |
Fair Value | $4,212 | $4,159 |
Investments_Details_1
Investments (Details 1) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | $88,099 | $94,353 | ||
Corporate Debt Securities [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | 36,728 | [1] | 26,436 | [1] |
Commercial Paper [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | 16,450 | [1] | 18,462 | [1] |
Auction rate notes [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | 4,212 | [2] | 4,159 | [2] |
Money Market Funds [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | 14,179 | [3] | 13,845 | [3] |
Certificates of Deposits [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | ' | 19,047 | [1] | |
Municipal Securities [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | 16,530 | [1] | 12,404 | [1] |
Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | 14,179 | 32,892 | ||
Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | Corporate Debt Securities [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | ' | [1] | ' | [1] |
Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | Commercial Paper [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | ' | [1] | ' | [1] |
Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | Auction rate notes [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | ' | [2] | ' | [2] |
Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | Money Market Funds [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | 14,179 | [3] | 13,845 | [3] |
Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | Certificates of Deposits [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | ' | 19,047 | [1] | |
Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | Municipal Securities [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | ' | [1] | ' | [1] |
Significant Other Observable Inputs Level 2 [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | 69,708 | 57,302 | ||
Significant Other Observable Inputs Level 2 [Member] | Corporate Debt Securities [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | 36,728 | [1] | 26,436 | [1] |
Significant Other Observable Inputs Level 2 [Member] | Commercial Paper [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | 16,450 | [1] | 18,462 | [1] |
Significant Other Observable Inputs Level 2 [Member] | Auction rate notes [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | ' | [2] | ' | [2] |
Significant Other Observable Inputs Level 2 [Member] | Money Market Funds [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | ' | [3] | ' | [3] |
Significant Other Observable Inputs Level 2 [Member] | Certificates of Deposits [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | ' | ' | [1] | |
Significant Other Observable Inputs Level 2 [Member] | Municipal Securities [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | 16,530 | [1] | 12,404 | [1] |
Significant Unobservable Inputs Level 3 [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | 4,212 | 4,159 | ||
Significant Unobservable Inputs Level 3 [Member] | Corporate Debt Securities [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | ' | [1] | ' | [1] |
Significant Unobservable Inputs Level 3 [Member] | Commercial Paper [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | ' | [1] | ' | [1] |
Significant Unobservable Inputs Level 3 [Member] | Auction rate notes [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | 4,212 | [2] | 4,159 | [2] |
Significant Unobservable Inputs Level 3 [Member] | Money Market Funds [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | ' | [3] | ' | [3] |
Significant Unobservable Inputs Level 3 [Member] | Certificates of Deposits [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | ' | ' | [1] | |
Significant Unobservable Inputs Level 3 [Member] | Municipal Securities [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | ' | [1] | ' | [1] |
[1] | Included in short-term investments | |||
[2] | Included in long-term investments | |||
[3] | Included in cash and cash equivalents |
Investments_Details_Textual
Investments (Details Textual) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 |
Auction rate notes [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Short-term Investments [Member] | ||
Auction rate notes [Member] | Auction rate notes [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Short term investment of cash in instruments , minimum maturity period | '3 months | ' | ' | ' | ' | ' | ' |
Short-term investments, minimum maturity period | '1 month | ' | ' | ' | ' | ' | ' |
Short -term investments, maximum maturity period | '2 years | ' | ' | ' | ' | ' | ' |
Temporary gain of these securities to accumulated other comprehensive income Net of tax | ' | ' | ' | ' | ' | ' | $3 |
Temporary gain of these securities to accumulated other comprehensive income pre tax | ' | ' | ' | ' | ' | ' | 5 |
Short-term interest rate reset dates of auction rate note securities | ' less than ninety days | ' | ' | ' | ' | ' | ' |
Auction rate note securities with contractual maturities | 'excess of ten years | ' | ' | ' | ' | ' | ' |
Reset period for the securities held | 'seven or twenty eight days | ' | ' | ' | ' | ' | ' |
Period for principal repayments by issuer | ' | ' | '19 years | '34 years | ' | ' | ' |
Maximum Interest Rate | ' | ' | ' | ' | 1.50% | 2.50% | ' |
Comprehensive income net of tax due to auction rate notes | ' | 317 | ' | ' | ' | ' | ' |
Comprehensive income before tax due to auction rate notes | ' | $488 | ' | ' | ' | ' | ' |
Investments_Details_2
Investments (Details 2) (Fair Value Measurements Using Significant Unobservable Inputs (Level 3) [Member], USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) [Member] | ' |
Schedule of changes in Level 3 securities | ' |
Beginning balance, December 31, 2012 | $4,159 |
Transfers in and/or out of Level 3 | ' |
Total gains, before tax | 53 |
Settlements | ' |
Ending balance, September 30, 2013 | $4,212 |
Inventories_Details
Inventories (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventories | ' | ' |
Finished goods | $13,338 | $12,518 |
Work in process | 30,195 | 28,133 |
Raw materials | 1,569 | 1,605 |
Total inventories | $45,102 | $42,256 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, plant and equipment | ' | ' |
Property, plant and equipment, Gross | $262,353 | $256,487 |
Accumulated depreciation | -203,589 | -195,795 |
Total property, plant and equipment, net | 58,764 | 60,692 |
Manufacturing equipment [Member] | ' | ' |
Property, plant and equipment | ' | ' |
Property, plant and equipment, Gross | 178,566 | 174,353 |
Land [Member] | ' | ' |
Property, plant and equipment | ' | ' |
Property, plant and equipment, Gross | 8,101 | 8,101 |
Buildings and improvements [Member] | ' | ' |
Property, plant and equipment | ' | ' |
Property, plant and equipment, Gross | 54,129 | 53,792 |
Office furniture and research equipment [Member] | ' | ' |
Property, plant and equipment | ' | ' |
Property, plant and equipment, Gross | $21,557 | $20,241 |
Property_Plant_and_Equipment_D1
Property, Plant and Equipment (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Property, Plant and Equipment (Textual) [Abstract] | ' | ' |
Depreciation | $2.70 | $8.30 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | Developed technology [Member] | Developed technology [Member] | Customer relationships [Member] | Customer relationships [Member] | Trademarks [Member] | Trademarks [Member] | Noncompete Agreements [Member] | Noncompete Agreements [Member] | In-process research and development [Member] | In-process research and development [Member] | Minimum [Member] | Maximum [Member] | ||
Schedule of goodwill and intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Gross | $13,603 | $8,730 | $7,443 | $4,400 | $3,800 | $3,000 | $610 | $510 | $450 | $410 | $1,300 | $410 | ' | ' |
Accumulated Amortization | -1,808 | -824 | -798 | -330 | -463 | -225 | -236 | -115 | -311 | -154 | 0 | 0 | ' | ' |
Net Carrying Amount | $11,795 | $7,906 | $6,645 | $4,070 | $3,337 | $2,775 | $374 | $395 | $139 | $256 | $1,300 | $410 | ' | ' |
Estimated useful life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | '10 years |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets (Details 1) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of future amortization expenses | ' | ' |
2013 (remaining three months) | $386 | ' |
2014 | 1,357 | ' |
2015 | 1,241 | ' |
2016 | 1,208 | ' |
2017 | 1,157 | ' |
Thereafter | 6,446 | ' |
Net Carrying Amount | $11,795 | $7,906 |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 09, 2013 | Sep. 30, 2013 | Sep. 09, 2013 |
PhaseLink Acquisition [Member] | Discera, Inc. [Member] | Discera, Inc. [Member] | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' |
Goodwill | $8,501 | $8,501 | $6,076 | $6,100 | $2,425 | $2,400 |
Date of acquisition | ' | 2-Apr-12 | ' | ' | ' | ' |
Total intangible amortization expense | $354 | ($984) | ' | ' | ' | ' |
Other_Current_Liabilities_Deta
Other Current Liabilities (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of other current liabilities | ' | ' |
Accrued compensation | $6,368 | $4,167 |
Accrued commissions | 2,725 | 1,918 |
Accrued workers compensation and health insurance | 944 | 865 |
All other current accrued liabilities | 1,705 | 1,883 |
Total other current liabilities | $11,742 | $8,833 |
Borrowing_Arrangements_Details
Borrowing Arrangements (Details) (USD $) | Sep. 30, 2013 |
Borrowing Arrangements (Additional Textual) [Abstract] | ' |
Line of credit available for general working capital needs | $5,000,000 |
Letter of credit sub-facility | 5,000,000 |
Foreign exchange sub-facility | 2,000,000 |
Interest rates under the amended agreement variable alternate base rate | 1.00% |
Fed Funds Rate | 0.50% |
Daily adjusted one-month LIBOR | 1.00% |
Amount outstanding on the line of credit | 0 |
Minimum [Member] | ' |
Borrowing Arrangements (Additional Textual) [Abstract] | ' |
Interest rates under the amended agreement, floating | 2.00% |
Letter of Credit [Member] | ' |
Borrowing Arrangements (Additional Textual) [Abstract] | ' |
Line of Credit Facility, Maximum Borrowing Capacity | $325,000 |
Significant_Customers_Details
Significant Customers (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 |
Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | |||||
Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | |||||
customer | World wide distributors 1 [Member] | World wide distributors 1 [Member] | World wide distributors 2 [Member] | World wide distributors 2 [Member] | Worldwide Distributor [Member] | Direct Customer [Member] | World wide distributors 1 [Member] | World wide distributors 2 [Member] | Worldwide Distributor [Member] | Worldwide Distributor [Member] | Asian based stocking [Member] | Direct Customer [Member] | Direct Customer [Member] | |||||
customer | customer | customer | customer | customer | ||||||||||||||
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues | $58,169 | $62,928 | $177,073 | $187,778 | ' | $54,300 | $47,500 | $34,900 | $30,700 | ' | $20,100 | ' | ' | ' | ' | ' | ' | ' |
Concentration risk, percentage | ' | ' | ' | ' | ' | 31.00% | 25.00% | 20.00% | 16.00% | ' | 11.00% | 34.00% | 14.00% | ' | 28.00% | 14.00% | 10.00% | ' |
Significant Customer, Number | ' | ' | ' | ' | 2 | ' | ' | ' | ' | 2 | 1 | ' | ' | 2 | 1 | ' | ' | 1 |
Segment_Reporting_Details
Segment Reporting (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net Revenues by Segment | ' | ' | ' | ' |
Total net revenues | $58,169 | $62,928 | $177,073 | $187,778 |
Total net revenues | 100.00% | 100.00% | 100.00% | 100.00% |
Standard Products [Member] | ' | ' | ' | ' |
Net Revenues by Segment | ' | ' | ' | ' |
Total net revenues | 56,185 | 60,753 | 171,469 | 180,756 |
Total net revenues | 97.00% | 97.00% | 97.00% | 96.00% |
Other Products [Member] | ' | ' | ' | ' |
Net Revenues by Segment | ' | ' | ' | ' |
Total net revenues | $1,984 | $2,175 | $5,604 | $7,022 |
Total net revenues | 3.00% | 3.00% | 3.00% | 4.00% |
Share_Repurchase_Program_Detai
Share Repurchase Program (Details) (USD $) | 0 Months Ended | 9 Months Ended | |
In Millions, except Share data, unless otherwise specified | Oct. 24, 2013 | Jul. 26, 2012 | Sep. 30, 2013 |
Share Repurchase Program [Abstract] | ' | ' | ' |
Share repurchase program | $30 | $30 | ' |
Remaining Authorized Repurchase Amount | ' | ' | 6 |
Total repurchase shares | ' | ' | 1,323,367 |
Common stock for an aggregate price | ' | ' | $13.20 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2011 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' |
Income tax provision as percentage of income before taxes | 6.10% | ' | 10.60% | ' | ' |
Tax benefits recognized due to a lapse of the statute of limitations | $775,000 | ' | ' | $661,000 | ' |
Income tax provision, foreign filing | ' | ' | 424,000 | ' | ' |
Benefit for 2012 research tax credits | ' | ' | 1,400,000 | ' | ' |
Percentage of income before taxes | ' | 22.30% | ' | 30.60% | ' |
Tax benefits recognized due to settlements with taxing authorities | ' | ' | ' | 176,000 | ' |
Liability for uncertain tax positions | 11,800,000 | ' | 11,800,000 | ' | ' |
Net liability, reduced for the federal effects of potential state tax exposures | 8,400,000 | ' | 8,400,000 | ' | ' |
Tax provision, included not yet reduced income tax payments | 5,400,000 | ' | 5,400,000 | ' | ' |
Anticipated significant change to uncertain income tax positions accrued in current and long term taxes payable | 3,000,000 | ' | 3,000,000 | ' | ' |
Long-term uncertain income tax positions within the next 12 months | 2,897,000 | ' | 2,897,000 | ' | ' |
Accrued Income Taxes, Current | 103,000 | ' | 103,000 | ' | ' |
Interest and penalties related to income tax | 310,000 | ' | 310,000 | ' | 354,000 |
Current deferred tax assets | 22,400,000 | ' | 22,400,000 | ' | ' |
Net long-term deferred tax assets | 586,000 | ' | 586,000 | ' | ' |
Deferred tax valuation allowance | $8,500,000 | ' | $8,500,000 | ' | ' |
Dividends_Details
Dividends (Details) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Jul. 25, 2013 | Apr. 25, 2013 | Dec. 27, 2012 | Dec. 07, 2012 | Jul. 26, 2012 | Apr. 26, 2012 | Jan. 26, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Aug. 28, 2013 | 22-May-13 | Aug. 23, 2012 | 23-May-12 | Feb. 22, 2012 | ||
Dividends, Common Stock [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Acclerated cash dividend per share | ' | ' | ' | $0.04 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Payment of accelerated cash dividends | ' | ' | $2,497 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Board of Directors declared a cash dividend | $0.05 | $0.04 | ' | ' | $0.04 | $0.04 | $0.04 | $0.05 | $0.04 | $0.09 | $0.12 | ' | ' | ' | ' | ' | ||
Payment to Shareholders | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,890 | $2,482 | $2,230 | $2,453 | $2,451 | ||
[1] | The cash dividend declared on December 7, 2012 was an accelerated cash dividend in lieu of the quarterly dividend that the Company would have otherwise announced in January 2013 with its quarterly financial results for the fourth quarter of 2012, and that would have been paid in February of 2013. |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 0 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Oct. 24, 2013 | Jul. 26, 2012 |
Subsequent Event [Line Items] | ' | ' |
Share repurchase program | $30 | $30 |
Dividend Declared [Member] | Subsequent Event [Member] | ' | ' |
Subsequent Event [Line Items] | ' | ' |
Board of Directors declared a cash dividend payable | $0.05 | ' |
Dividends to be paid in second quarter | $2.90 | ' |