UNITED STATES | ||||
SECURITIES AND EXCHANGE COMMISSION | ||||
Washington, D.C. 20549 | ||||
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | ||
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Common Stock, $0.001 par value per share | NTUS | The |
(The Nasdaq Global Select Market) |
Large Accelerated Filer | ☒ | Accelerated filer | ☐ | ||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | ||
Emerging growth company | ☐ |
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• | Electroencephalography — Equipment, supplies and services used to monitor and visually display the electrical activity generated by the brain and other key physiological signals for both diagnosis and monitoring of neurological disorders in the hospital, research laboratory, clinician office and patient’s home. |
• | Electromyography — Equipment and supplies used to measure electrical activity in nerves, muscles, and critical pathways includes EMG, nerve conduction and evoked potential functionality. |
• | Polysomnography — Equipment and supplies used to measure a variety of respiratory and physiologic functions to assist in the diagnosis and monitoring of sleep disorders, such as insomnia and obstructive sleep apnea. |
• | Intraoperative monitoring — Equipment and supplies used to monitor the functional integrity of certain neural structures (i.e. nerves, spinal cord and parts of the brain) during surgery. The goal of IOM is to provide real time guidance to the surgeon and anesthesiologist, which will reduce the risk to the patient during surgery. |
• | Intracranial pressure monitoring — Equipment and catheters used to monitor pressure in the cranium/brain and catheters to drain cerebrospinal fluid from the brain to aid in hydrocephalus and traumatic brain injury cases. |
• | Cranial access kits — Convenient, pre-packaged sterile sets containing all necessary components for entry into the cranium, to monitor intracranial pressure and provide temporary drainage of CSF. |
• | Shunts and Dural grafts — Shunts are used to manage the drainage of cerebrospinal fluid from the brain to maintain appropriate levels of CSF when treating hydrocephalus. Dural grafts are used in procedures to repair or substitute a patient's dura mater which surrounds the brain. |
• | NeuroWorks; NicoletOne. Our EEG Systems include a broad range of products, from software licenses and ambulatory |
• | Stellate/Gotman Spike and Seizure; GridView; NicoletOne Trends. Our proprietary spike and seizure detection algorithm detects, summarizes, and reports EEG events that save health-care professionals time by increasing the speed and accuracy of interpretation. GridView is a tool that allows the clinician to correlate EEG patterns with electrode contacts on a 3D view of the patient brain using magnetic resonance (“MR”) or computed tomography (“CT”) images, thus enabling the visualization and annotation of the brain surface and internal structures involved in the diagnosis of epilepsy. NicoletOne Trends provides a comprehensive set of EEG analysis algorithms that are used to generate compressed trends of large amounts of data to assist in the clinical evaluation and data review process. |
• | Proprietary Signal Amplifiers. Our proprietary signal amplifiers function as the interface between the patient and the computer. The headbox connects electrodes attached to the patient’s head to our EEG monitoring systems. |
• | Nicolet Cortical Stimulator. This product is our proprietary device that provides cortical stimulation to the brain during functional brain mapping either before or during surgery to help the surgeon protect the eloquent parts of the brain (parts of the brain that control speech, motor and sensory functionality). The device can be used as a standalone unit or with the fully integrated NicoletOne or NeuroWorks software that supports control of the device from the software, automated mapping and comprehensive report generation. |
• | Supplies. We also manufacture and market a full line of proprietary EEG electrodes and other supplies used in the electroencephalography field. |
• | Dantec Keypoint. The Dantec Keypoint G-4 and Focus EMG and EP family of products features amplifiers, stimulators, and strong signal quality. The Keypoint G4 is used for advanced neurodiagnostic applications such as single fiber EMG, visual and auditory evoked potentials, and in routine nerve conduction studies. The Keypoint Focus system is also available in a portable laptop configuration. |
• | Dantec Clavis. The Dantec Clavis device is a hand-held EMG stimulation device that provides muscle and nerve localization information to assist with medication and botox injections. In conjunction with the Bo-ject or Myoject hypodermic needle and electrodes, physicians can better localize the site of the injection. |
• | Nicolet EDX family. A hardware platform of amplifiers, base control units, stimulators and hand-held probes that are sold with Nicolet brand proprietary software. These mid- to high-end systems have full functionality, strong signal quality, and flexibility. They include EMG, NCS, EP’s, IOM and advanced data analysis features. |
• | Nicolet VikingQuest. An EMG system for the mid-range market. The device runs on our proprietary software. |
• | Natus UltraPro. This is an entry level product with add on capabilities that offers high quality data collection using the Dantec Keypoint amplifiers and the proprietary Natus EMG/EP software. |
• | Supplies. We also manufacture and market a full line of proprietary EMG needles and other supplies used in the electrodiagnostic field. |
• | Embla REMlogic, Sandman; and Xltek SleepWorks. Our diagnostic PSG systems capture and store all data digitally. The systems enable users to specify rules and personal preferences to be used during analysis, summarizing the results graphically and incorporating them in detailed reports. |
• | Proprietary Amplifiers. Our data acquisition systems incorporate recent developments in superior amplifiers for sleep analysis. Our amplifiers are used in both hospitals and stand-alone clinics. In addition to exceptional signal quality, headboxes include various tools such as built-in oximeters and controls to allow the user to start and stop a study or perform electrode impedance testing either at the patient’s bedside or from the monitoring room. |
• | Supplies. We also market a broad line of supplies, disposable products and accessories for the PSG laboratory including the XactTrace respiratory monitoring belts. |
• | Xltek Protektor. The Protektor system is an IOM system that provides medical professionals with all information necessary to make immediate and critical surgical decisions. The system combines flexibility with multi-modality allowing full coverage of IOM techniques. The Protektor comes in 16 or 32 channel options. |
• | Nicolet EDX. These combo systems are used in IOM applications where a smaller number of channels is sufficient. This approach is primarily followed in international markets that utilize the integrated system approach that allows for the use of the system in EMG clinical applications as well as in IOM applications. |
• | Camino ICP Monitor. The Camino ICP Monitor is a compact, portable device that provides tools for continuously determining and monitoring intracranial pressure and intracranial temperature. It has a touch screen interface, physiological alarms, and can output data to either a patient bedside monitor or to remote media types via a USB drive. These systems are used in the intensive care unit (ICU) environment. |
• | Camino Catheters. Camino catheters use either fiber optic or strain gauge technology to measure either pressure and temperature or just pressure. Camino catheters measure their respective values at the tip of the catheter, which eliminates the need for a fluid-filled system that uses an external transducer to measure pressure. The Camino Flex Ventricular Intracranial Pressure Monitoring Kit has a catheter that allows both the measurement of ICP and CSF drainage. |
• | Cranial Access Kits. Cranial Access Kits are convenient procedural kits that include all the instrumentation and items needed to access the subarachnoid space or the lateral ventricles of the brain. The kit is intended to be used with an external drainage and monitoring system in selected patients to reduce intracranial pressure, to provide temporary drainage of CSF, and to monitor ICP. The kit is a convenient, pre-packaged sterile set containing all necessary components for entry into the cranium and is available with or without drugs and with a variety of drill bits and instrumentation. |
• | DURAFORM. DURAFORM Dural Graft Implant is an absorbable collagen matrix to provide a soft, conforming, and easy to use dural substitute. This product is used in the operating room to provide repair of the dura mater and promote dural healing. |
• | Shunts. Shunts are used in the operating room to provide solutions for hydrocephalus or brain trauma. Shunts are used to manage the drainage of cerebrospinal fluid from the brain to maintain appropriate levels of CSF when treating hydrocephalus. |
• | Newborn Hearing Screening — Products used to screen hearing in newborns. |
• | Diagnostic Hearing Assessment — Products used to screen for or diagnose hearing loss, or to identify abnormalities affecting the peripheral and central auditory nervous systems in patients of all ages. |
• | Jaundice Management — Products used to treat jaundice, the single largest cause for hospital readmission of newborns in the U.S. |
• | Newborn Brain Injury — Products used to diagnose the severity of brain injury, monitor the effectiveness of drug therapies, detect seizure activity and monitor general neurological status. |
• | Eye Imaging — Systems and products used in the advanced science and practice of neonatal and pediatric retinal imaging. |
• | Essentials — Products used in the everyday operation of neonatal intensive care unit (“NICU”) and well-baby nursery department within the hospital environment. |
• | NICVIEW — Live streaming video for families with babies in the NICU that enables family members and approved friends to see the new baby, 24/7, from anywhere in the world - from any Internet connected device, within a secured environment. |
• | ALGO 5 and 3i Newborn Hearing Screeners. These Automated Auditory Brainstem Responses (“AABR”) devices deliver thousands of soft audible clicks to the newborn’s ears through sound cables and disposable earphones connected to the instrument. Each click elicits an identifiable brain wave, which is detected by disposable electrodes placed on the head of the child and analyzed by the screening device. These devices use our proprietary AABR signal detection algorithm. |
• | ABaer Newborn Hearing Screener. The ABaer, which is a PC-based newborn hearing screening device, offers a combination of AABR, OAE, and diagnostic ABR technologies in one system. |
• | Echo-Screen. Our hand-held Echo-Screen products provide a choice or combination of proprietary ABR and OAE technologies that can also be used for children through adults. The Echo-Screen III device is a compact, multi-modality handheld hearing screener that is tightly integrated with audible Lite Hearing Screening Data Management. |
• | ABR Screening Supply Kits. Each ABR screen is carried out with single-use earphones and electrodes, which are alcohol and latex-free. The adhesives used in these supply products are specially formulated for use on the sensitive skin of newborns. To meet the needs of our customers we offer a variety of packaging options. Echo-Screen and ABaer offer the choice of either an earphone or use of ear tips for perform ABR screening. |
• | OAE Supply Products. Each OAE screen is carried out with single-use ear tips that are supplied in a variety of sizes and packaging options. |
• | neoBLUE Product Family. This product line consists of our neoBLUE Overhead, neoBLUE Mini, neoBLUE Cozy, neoBLUE Compact and neoBLUE blanket devices, which utilize light emitting diodes (“LEDs”) to generate a high-intensity, narrow spectrum of blue light that is clinically proven to be most effective in the treatment of newborn jaundice. Our neoBLUE phototherapy devices emit significantly less ultraviolet light and heat than conventional phototherapy devices, reducing the risk of skin damage and dehydration for infants undergoing treatment. Because of the high intensity of these lights, the treatment time associated with phototherapy is reduced. |
• | Olympic Brainz Monitor. The Olympic Brainz Monitor is our latest generation Cerebral Function Monitor. The device can be used in single-channel, two-channel or three-channel modes to continuously monitor and record brain activity. |
• | RetCam 3. Full-featured imaging system with a range of interchangeable lenses, Fluorescein Angiography module option. |
• | RetCam Shuttle. Laptop-based system with a smaller cart and dual wheel casters for improved transportability. |
• | RetCam Portable. Laptop-based version in a case for maximum portability. |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||
2017 | 2016 | 2015 | 2019 | 2018 | 2017 | |||||||||||
Neurology | 48 | % | 62 | % | 63 | % | ||||||||||
Neuro | 58 | % | 53 | % | 49 | % | ||||||||||
Newborn Care | 29 | % | 38 | % | 37 | % | 22 | % | 25 | % | 31 | % | ||||
Otometrics | 23 | % | — | % | — | % | ||||||||||
Hearing & Balance | 20 | % | 22 | % | 20 | % | ||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||
2017 | 2016 | 2015 | 2019 | 2018 | 2017 | |||||||||||
Devices and Systems | 67 | % | 63 | % | 64 | % | 74 | % | 72 | % | 67 | % | ||||
Supplies | 26 | % | 28 | % | 29 | % | 22 | % | 22 | % | 26 | % | ||||
Services | 7 | % | 9 | % | 7 | % | 4 | % | 6 | % | 7 | % | ||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Backlog | $ | 13,849 | $ | 10,555 | $ | 9,359 |
Year Ended December 31, | ||||||||
2017 | 2016 | 2015 | ||||||
Domestic revenue | 54.1 | % | 65.6 | % | 64.4 | % |
Year Ended December 31, | ||||||||
2019 | 2018 | 2017 | ||||||
Domestic revenue | 59.0 | % | 56.7 | % | 54.1 | % |
Year Ended December 31, | ||||||||
2017 | 2016 | 2015 | ||||||
International revenue | 45.9 | % | 34.4 | % | 35.6 | % |
Year Ended December 31, | ||||||||
2019 | 2018 | 2017 | ||||||
International revenue | 41.0 | % | 43.3 | % | 45.9 | % |
Year Ended December 31, | ||||||||
2017 | 2016 | 2015 | ||||||
Direct purchases by GPO members | 14.5 | % | 12.3 | % | 9.3 | % |
Year Ended December 31, | ||||||||
2019 | 2018 | 2017 | ||||||
Direct purchases by GPO members | 18.7 | % | 13.3 | % | 14.5 | % |
Name | Age | Position(s) | |||
President and Chief Executive Officer | |||||
Executive Vice President and Chief Financial Officer | |||||
D. Christopher Chung, M.D. | |||||
Vice President of Quality, Regulatory Affairs and | |||||
Austin F. Noll, III | Executive Vice President and |
High | Low | High | Low | |||||||||||
Fiscal Year Ended December 31, 2017: | ||||||||||||||
Fiscal Year Ended December 31, 2019: | ||||||||||||||
Fourth Quarter | $ | 43.60 | $ | 37.10 | $ | 34.89 | $ | 29.67 | ||||||
Third Quarter | 39.50 | 31.65 | 32.85 | 22.25 | ||||||||||
Second Quarter | 41.25 | 33.28 | 27.90 | 23.54 | ||||||||||
First Quarter | 39.75 | 33.55 | 34.63 | 24.88 | ||||||||||
Fiscal Year Ended December 31, 2016: | ||||||||||||||
Fiscal Year Ended December 31, 2018: | ||||||||||||||
Fourth Quarter | $ | 43.85 | $ | 33.15 | $ | 36.85 | $ | 27.69 | ||||||
Third Quarter | 44.39 | 36.80 | 37.90 | 31.05 | ||||||||||
Second Quarter | 39.81 | 29.54 | 37.95 | 31.10 | ||||||||||
First Quarter | 47.24 | 32.00 | 39.25 | 28.00 |
2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | |||||||||||||||||||||||||||||
Natus Medical Inc. | Return % | 101.61 | 60.18 | 33.32 | (27.58 | ) | 9.77 | Return % | 33.32 | (27.58 | ) | 9.77 | (10.92 | ) | (3.06 | ) | ||||||||||||||||||||||||
Cum $ | 100.00 | 201.61 | 322.94 | 430.56 | 311.83 | 342.29 | Cum $ | 100.00 | 133.32 | 96.56 | 105.99 | 94.42 | 91.53 | |||||||||||||||||||||||||||
NASDAQ Composite-Total Returns | Return % | 40.12 | 14.75 | 6.96 | 8.87 | 29.64 | Return % | 6.96 | 8.87 | 29.64 | (2.84 | ) | 36.69 | |||||||||||||||||||||||||||
Cum $ | 100.00 | 140.12 | 160.78 | 171.97 | 187.22 | 242.71 | Cum $ | 100.00 | 106.96 | 116.45 | 150.96 | 146.67 | 200.49 | |||||||||||||||||||||||||||
S&P 500 Health Care Equipment Index | Return % | 27.69 | 26.28 | 5.97 | 6.48 | 30.90 | Return % | 5.97 | 6.48 | 30.90 | 16.24 | 29.32 | ||||||||||||||||||||||||||||
Cum $ | 100.00 | 127.69 | 161.24 | 170.88 | 181.96 | 238.17 | Cum $ | 100.00 | 105.97 | 112.85 | 147.71 | 171.70 | 222.04 |
Year ended December 31, | Year ended December 31, | |||||||||||||||||||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||||||||||||
(in thousands, except per share amounts) | (in thousands, except per share amounts) | |||||||||||||||||||||||||||||||||||||
Consolidated Statement of Operations Data (a) (b): | ||||||||||||||||||||||||||||||||||||||
Consolidated Statement of Operations Data (a)(b): | Consolidated Statement of Operations Data (a)(b): | |||||||||||||||||||||||||||||||||||||
Revenue | $ | 500,970 | $ | 381,892 | $ | 375,865 | $ | 355,834 | $ | 344,112 | $ | 495,175 | $ | 530,891 | $ | 500,970 | $ | 381,892 | $ | 375,865 | ||||||||||||||||||
Cost of revenue | 213,376 | 144,632 | 145,492 | 138,480 | 138,788 | 196,551 | 217,952 | 213,376 | 144,632 | 145,492 | ||||||||||||||||||||||||||||
Intangibles amortization | 6,380 | 2,327 | 2,836 | 2,967 | 2,912 | 6,916 | 8,924 | 6,380 | 2,327 | 2,836 | ||||||||||||||||||||||||||||
Gross profit | 281,214 | 234,933 | 227,537 | 214,387 | 202,412 | 291,708 | 304,015 | 281,214 | 234,933 | 227,537 | ||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||||||||
Marketing and selling | 126,166 | 84,834 | 87,675 | 85,729 | 83,138 | 129,109 | 136,680 | 126,166 | 84,834 | 87,675 | ||||||||||||||||||||||||||||
Research and development | 51,822 | 33,443 | 30,434 | 30,100 | 30,786 | 58,733 | 61,482 | 51,822 | 33,443 | 30,434 | ||||||||||||||||||||||||||||
General and administrative | 74,424 | 50,877 | 46,363 | 45,444 | 43,380 | 59,649 | 70,599 | 74,424 | 50,877 | 46,363 | ||||||||||||||||||||||||||||
Intangibles amortization | 19,171 | 8,983 | 7,447 | 3,025 | 5,681 | 15,144 | 22,585 | 19,171 | 8,983 | 7,447 | ||||||||||||||||||||||||||||
Restructuring | 914 | 1,536 | 2,145 | 4,238 | 4,767 | 44,739 | 37,231 | 914 | 1,536 | 2,145 | ||||||||||||||||||||||||||||
Total operating expense | 272,497 | 179,673 | 174,064 | 168,536 | 167,752 | 307,374 | 328,577 | 272,497 | 179,673 | 174,064 | ||||||||||||||||||||||||||||
Income from operations | 8,717 | 55,260 | 53,473 | 45,851 | 34,660 | (15,666 | ) | (24,562 | ) | 8,717 | 55,260 | 53,473 | ||||||||||||||||||||||||||
Other income (expense), net | (3,567 | ) | (357 | ) | (1,064 | ) | 158 | (2,716 | ) | |||||||||||||||||||||||||||||
Income before provision for income tax | 5,150 | 54,903 | 52,409 | 46,009 | 31,944 | |||||||||||||||||||||||||||||||||
Provision for income tax | 25,443 | 12,309 | 14,485 | 13,531 | 8,797 | |||||||||||||||||||||||||||||||||
Other expense, net | (5,591 | ) | (7,698 | ) | (3,567 | ) | (357 | ) | (1,064 | ) | ||||||||||||||||||||||||||||
Income (loss) before provision (benefit) for income tax | (21,257 | ) | (32,260 | ) | 5,150 | 54,903 | 52,409 | |||||||||||||||||||||||||||||||
Provision (benefit) for income tax | (5,586 | ) | (9,325 | ) | 25,443 | 12,309 | 14,485 | |||||||||||||||||||||||||||||||
Net income (loss) | $ | (20,293 | ) | $ | 42,594 | $ | 37,924 | $ | 32,478 | $ | 23,147 | $ | (15,671 | ) | $ | (22,935 | ) | $ | (20,293 | ) | $ | 42,594 | $ | 37,924 | ||||||||||||||
Earnings per share: | ||||||||||||||||||||||||||||||||||||||
Earnings (loss) per share: | ||||||||||||||||||||||||||||||||||||||
Basic | $ | (0.62 | ) | $ | 1.31 | $ | 1.17 | $ | 1.03 | $ | 0.77 | $ | (0.47 | ) | $ | (0.69 | ) | $ | (0.62 | ) | $ | 1.31 | $ | 1.17 | ||||||||||||||
Diluted | $ | (0.62 | ) | $ | 1.29 | $ | 1.14 | $ | 1.00 | $ | 0.75 | $ | (0.47 | ) | $ | (0.69 | ) | $ | (0.62 | ) | $ | 1.29 | $ | 1.14 | ||||||||||||||
Weighted average shares used in the calculation of earnings per share: | ||||||||||||||||||||||||||||||||||||||
Basic | 32,564 | 32,460 | 32,348 | 31,499 | 29,993 | 33,696 | 33,111 | 32,564 | 32,460 | 32,348 | ||||||||||||||||||||||||||||
Diluted | 32,564 | 33,056 | 33,241 | 32,568 | 30,821 | 33,696 | 33,111 | 32,564 | 33,056 | 33,241 |
December 31, | December 31, | |||||||||||||||||||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||||||
Consolidated Balance Sheet Data: | ||||||||||||||||||||||||||||||||||||||
Cash, cash equivalents, and short-term investments | $ | 88,950 | $ | 247,750 | $ | 82,469 | $ | 66,558 | $ | 56,106 | $ | 63,297 | $ | 56,373 | $ | 88,950 | $ | 247,750 | $ | 82,469 | ||||||||||||||||||
Working capital | 213,491 | 325,858 | 164,248 | 148,665 | 118,585 | 126,928 | 152,329 | 213,491 | 325,858 | 164,248 | ||||||||||||||||||||||||||||
Total assets | 709,919 | 649,012 | 479,496 | 434,821 | 429,457 | 622,527 | 638,140 | 709,919 | 649,012 | 479,496 | ||||||||||||||||||||||||||||
Long-term debt (including current portion) and short-term borrowings | 154,283 | 140,000 | — | — | 38,017 | 54,665 | 104,474 | 154,283 | 140,000 | — | ||||||||||||||||||||||||||||
Total stockholders’ equity | 422,097 | 417,374 | 390,710 | 352,715 | 308,214 | 416,123 | 398,444 | 422,097 | 417,374 | 390,710 |
(a) | Results of operations and financial position of the businesses we have acquired are included from their acquisition dates as follows: |
(b) |
Percent of Revenue Years Ended December 31, | ||||||||
2017 | 2016 | 2015 | ||||||
Revenue | 100.0 | % | 100.0 | % | 100.0 | % | ||
Cost of revenue | 42.6 | % | 37.9 | % | 38.7 | % | ||
Intangibles amortization | 1.3 | % | 0.6 | % | 0.8 | % | ||
Gross profit | 56.1 | % | 61.5 | % | 60.5 | % | ||
Operating expenses: | ||||||||
Marketing and selling | 25.2 | % | 22.2 | % | 23.3 | % | ||
Research and development | 10.3 | % | 8.8 | % | 8.1 | % | ||
General and administrative | 14.9 | % | 13.3 | % | 12.3 | % | ||
Intangibles amortization | 3.8 | % | 2.4 | % | 2.0 | % | ||
Restructuring | 0.2 | % | 0.4 | % | 0.6 | % | ||
Total operating expenses | 54.4 | % | 47.0 | % | 46.3 | % | ||
Income from operations | 1.7 | % | 14.5 | % | 14.2 | % | ||
Other income (expense), net | (0.7 | )% | (0.1 | )% | (0.3 | )% | ||
Income before provision for income tax | 1.0 | % | 14.4 | % | 13.9 | % | ||
Provision for income tax expense | 5.1 | % | 3.2 | % | 3.9 | % | ||
Net income | (4.1 | )% | 11.2 | % | 10.1 | % |
Year ended December 31, | ||||||||||
2017 | 2016 | Change | ||||||||
Neuro | ||||||||||
Devices and Systems | $ | 171,315 | $ | 168,200 | 2 | % | ||||
Supplies | 59,955 | 58,681 | 2 | % | ||||||
Services | 11,886 | 11,641 | 2 | % | ||||||
Total Neurology Revenue | 243,156 | 238,522 | 2 | % | ||||||
Newborn Care | ||||||||||
Devices and Systems | 77,573 | 72,562 | 7 | % | ||||||
Supplies | 43,732 | 47,674 | (8 | )% | ||||||
Services | 22,325 | 23,134 | (3 | )% | ||||||
Total Newborn Care Revenue | 143,630 | 143,370 | — | % | ||||||
Otometrics | ||||||||||
Devices and Systems | $ | 86,920 | $ | — | — | % | ||||
Supplies | 27,264 | — | — | % | ||||||
Services | — | — | — | % | ||||||
Total Otometrics Revenue | 114,184 | — | — | % | ||||||
Total Revenue | $ | 500,970 | $ | 381,892 | 31 | % |
Percent of Revenue Years Ended December 31, | ||||||||
2019 | 2018 | 2017 | ||||||
Revenue | 100.0 | % | 100.0 | % | 100.0 | % | ||
Cost of revenue | 39.7 | % | 41.1 | % | 42.6 | % | ||
Intangibles amortization | 1.4 | % | 1.7 | % | 1.3 | % | ||
Gross profit | 58.9 | % | 57.3 | % | 56.1 | % | ||
Operating expenses: | ||||||||
Marketing and selling | 26.1 | % | 25.7 | % | 25.2 | % | ||
Research and development | 11.9 | % | 11.6 | % | 10.3 | % | ||
General and administrative | 12.0 | % | 13.3 | % | 14.9 | % | ||
Intangibles amortization | 3.1 | % | 4.3 | % | 3.8 | % | ||
Restructuring | 9.0 | % | 7.0 | % | 0.2 | % | ||
Total operating expenses | 62.1 | % | 61.9 | % | 54.4 | % | ||
Income (loss) from operations | (3.2 | )% | (4.6 | )% | 1.7 | % | ||
Other expense, net | (1.1 | )% | (1.5 | )% | (0.7 | )% | ||
Income (loss) before provision (benefit) for income tax | (4.3 | )% | (6.1 | )% | 1.0 | % | ||
Provision (benefit) for income tax expense | (1.1 | )% | (1.8 | )% | 5.1 | % | ||
Net loss | (3.2 | )% | (4.3 | )% | (4.1 | )% |
Years ended December 31, | ||||||||||
2019 | 2018 | Change | ||||||||
Neuro | ||||||||||
Devices and Systems | $ | 220,306 | $ | 200,762 | 10 | % | ||||
Supplies | 66,059 | 67,025 | (1 | )% | ||||||
Services | 871 | 12,000 | (93 | )% | ||||||
Total Neuro Revenue | 287,236 | 279,787 | 3 | % | ||||||
Newborn Care | ||||||||||
Devices and Systems | 53,465 | 72,807 | (27 | )% | ||||||
Supplies | 38,264 | 40,669 | (6 | )% | ||||||
Services | 19,183 | 20,396 | (6 | )% | ||||||
Total Newborn Care Revenue | 110,912 | 133,872 | (17 | )% | ||||||
Hearing & Balance | ||||||||||
Devices and Systems | $ | 92,050 | $ | 110,597 | (17 | )% | ||||
Supplies | 4,977 | 6,635 | (25 | )% | ||||||
Services | — | — | — | % | ||||||
Total Hearing & Balance Revenue | 97,027 | 117,232 | (17 | )% | ||||||
Total Revenue | $ | 495,175 | $ | 530,891 | (7 | )% |
Year ended December 31, | |||||||
2017 | 2016 | ||||||
Revenue | $ | 500,970 | $ | 381,892 | |||
Cost of revenue | 213,376 | 144,632 | |||||
Intangibles amortization | 6,380 | 2,327 | |||||
Gross profit | 281,214 | 234,933 | |||||
Gross profit percentage | 56.1 | % | 61.5 | % |
Years ended December 31, | |||||||
2019 | 2018 | ||||||
Revenue | $ | 495,175 | $ | 530,891 | |||
Cost of revenue | 196,551 | 217,952 | |||||
Intangibles amortization | 6,916 | 8,924 | |||||
Gross profit | 291,708 | 304,015 | |||||
Gross profit percentage | 58.9 | % | 57.3 | % |
Year ended December 31, | Years ended December 31, | |||||||||||||
2017 | 2016 | 2019 | 2018 | |||||||||||
Marketing and selling | $ | 126,166 | $ | 84,834 | $ | 129,109 | $ | 136,680 | ||||||
Percentage of revenue | 25.2 | % | 22.2 | % | 26.1 | % | 25.7 | % | ||||||
Research and development | $ | 51,822 | $ | 33,443 | $ | 58,733 | $ | 61,482 | ||||||
Percentage of revenue | 10.3 | % | 8.8 | % | 11.9 | % | 11.6 | % | ||||||
General and administrative | $ | 74,424 | $ | 50,877 | $ | 59,649 | $ | 70,599 | ||||||
Percentage of revenue | 14.9 | % | 13.3 | % | 12.0 | % | 13.3 | % | ||||||
Intangibles amortization | $ | 19,171 | $ | 8,983 | $ | 15,144 | $ | 22,585 | ||||||
Percentage of revenue | 3.8 | % | 2.4 | % | 3.1 | % | 4.3 | % | ||||||
Restructuring | $ | 914 | $ | 1,536 | $ | 44,739 | $ | 37,231 | ||||||
Percentage of revenue | 0.2 | % | 0.4 | % | 9.0 | % | 7.0 | % |
Year ended December 31, | Years ended December 31, | |||||||||||||||||||
2016 | 2015 | Change | 2018 | 2017 | Change | |||||||||||||||
Neuro | ||||||||||||||||||||
Devices and Systems | $ | 168,200 | $ | 168,776 | — | % | $ | 200,762 | $ | 171,315 | 17 | % | ||||||||
Supplies | 58,681 | 60,205 | (3 | )% | 67,025 | 59,955 | 12 | % | ||||||||||||
Services | 11,641 | 8,320 | 40 | % | 12,000 | 11,886 | 1 | % | ||||||||||||
Total Neurology Revenue | 238,522 | 237,301 | 1 | % | ||||||||||||||||
Total Neuro Revenue | 279,787 | 243,156 | 15 | % | ||||||||||||||||
Newborn Care | ||||||||||||||||||||
Devices and Systems | 72,562 | 72,669 | — | % | 72,807 | 89,027 | (18 | )% | ||||||||||||
Supplies | 47,674 | 49,982 | (5 | )% | 40,669 | 43,928 | (7 | )% | ||||||||||||
Services | 23,134 | 15,913 | 45 | % | 20,396 | 22,325 | (9 | )% | ||||||||||||
Total Newborn Care Revenue | 143,370 | 138,564 | 3 | % | 133,872 | 155,280 | (14 | )% | ||||||||||||
Hearing & Balance | ||||||||||||||||||||
Devices and Systems | 110,597 | 75,466 | 47 | % | ||||||||||||||||
Supplies | 6,635 | 27,068 | (75 | )% | ||||||||||||||||
Services | — | — | — | % | ||||||||||||||||
Total Hearing & Balance Revenue | 117,232 | 102,534 | 14 | % | ||||||||||||||||
Total Revenue | $ | 381,892 | $ | 375,865 | 2 | % | $ | 530,891 | $ | 500,970 | 6 | % |
Year ended December 31, | |||||||
2016 | 2015 | ||||||
Revenue | $ | 381,892 | $ | 375,865 | |||
Cost of revenue | 144,632 | 145,492 | |||||
Intangibles amortization | 2,327 | 2,836 | |||||
Gross profit | 234,933 | 227,537 | |||||
Gross profit percentage | 61.5 | % | 60.5 | % |
Years ended December 31, | |||||||
2018 | 2017 | ||||||
Revenue | $ | 530,891 | $ | 500,970 | |||
Cost of revenue | 217,952 | 213,376 | |||||
Intangibles amortization | 8,924 | 6,380 | |||||
Gross profit | 304,015 | 281,214 | |||||
Gross profit percentage | 57.3 | % | 56.1 | % |
Year ended December 31, | Years ended December 31, | |||||||||||||
2016 | 2015 | 2018 | 2017 | |||||||||||
Marketing and selling | $ | 84,834 | $ | 87,675 | $ | 136,680 | $ | 126,166 | ||||||
Percentage of revenue | 22.2 | % | 23.3 | % | 25.7 | % | 25.2 | % | ||||||
Research and development | $ | 33,443 | $ | 30,434 | $ | 61,482 | $ | 51,822 | ||||||
Percentage of revenue | 8.8 | % | 8.1 | % | 11.6 | % | 10.3 | % | ||||||
General and administrative | $ | 50,877 | $ | 46,363 | $ | 70,599 | $ | 74,424 | ||||||
Percentage of revenue | 13.3 | % | 12.3 | % | 13.3 | % | 14.9 | % | ||||||
Intangibles Amortization | $ | 8,983 | $ | 7,447 | $ | 22,585 | $ | 19,171 | ||||||
Percentage of revenue | 2.4 | % | 2.0 | % | 4.3 | % | 3.8 | % | ||||||
Restructuring | $ | 1,536 | $ | 2,145 | $ | 37,231 | $ | 914 | ||||||
Percentage of revenue | 0.4 | % | 0.6 | % | 7.0 | % | 0.2 | % |
December 31, 2017 | December 31, 2016 | December 31, 2015 | December 31, 2019 | December 31, 2018 | December 31, 2017 | |||||||||||||||||
Cash, cash equivalents, and investments | $ | 88,950 | $ | 247,570 | $ | 82,469 | $ | 63,297 | $ | 56,373 | $ | 88,950 | ||||||||||
Debt | 154,283 | 140,000 | — | 54,665 | 104,474 | 154,283 | ||||||||||||||||
Working capital | 213,491 | 325,858 | 164,248 | 126,928 | 152,329 | 213,491 |
Year Ended | Year Ended | |||||||||||||||||||||
December 31, 2017 | December 31, 2016 | December 31, 2015 | December 31, 2019 | December 31, 2018 | December 31, 2017 | |||||||||||||||||
Net cash provided by operating activities | $ | 19,726 | $ | 72,687 | $ | 36,852 | $ | 60,060 | $ | 33,020 | $ | 19,726 | ||||||||||
Net cash used in investing activities | (160,935 | ) | (53,264 | ) | (19,478 | ) | (5,339 | ) | (8,389 | ) | (160,935 | ) | ||||||||||
Net cash provided by financing activities | 5,826 | 118,417 | 832 | |||||||||||||||||||
Net cash provided by (used in) financing activities | (48,532 | ) | (49,512 | ) | 5,826 |
Payments Due by Period | Payments Due by Period | |||||||||||||||||||||||||||||||||||||
Total | Less than 1 Year | 1-3 Years | 4-5 Years | More than 5 Years | Total | Less than 1 Year | 1-3 Years | 4-5 Years | More than 5 Years | |||||||||||||||||||||||||||||
Unconditional purchase obligations | $ | 50,035 | $ | 47,842 | $ | 2,193 | $ | — | $ | — | $ | 44,955 | $ | 44,955 | $ | — | $ | — | $ | — | ||||||||||||||||||
Operating lease obligations | 30,078 | 7,038 | 10,340 | 5,849 | 6,851 | |||||||||||||||||||||||||||||||||
Bank debt | 155,000 | — | — | 155,000 | — | 55,000 | — | 55,000 | — | — | ||||||||||||||||||||||||||||
Interest payments | 14,813 | 5,950 | 7,726 | 1,137 | — | 2,390 | 1,907 | 483 | — | — | ||||||||||||||||||||||||||||
Repatriation tax | 12,135 | $ | 971 | $ | 1,942 | $ | 1,942 | $ | 7,280 | 9,113 | 797 | 1,751 | 3,830 | 2,735 | ||||||||||||||||||||||||
Total | $ | 262,061 | $ | 61,801 | $ | 22,201 | $ | 163,928 | $ | 14,131 | $ | 111,458 | $ | 47,659 | $ | 57,234 | $ | 3,830 | $ | 2,735 |
Quarters Ended | Quarters Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2019 | September 30, 2019 (1) | June 30, 2019 (1) | March 31, 2019 (1) | December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||
(in thousands, except per amounts) | (in thousands, except per amounts) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | $ | 131,440 | $ | 122,643 | $ | 122,227 | $ | 124,660 | $ | 107,699 | $ | 90,906 | $ | 95,958 | $ | 87,329 | $ | 131,416 | $ | 123,463 | $ | 125,539 | $ | 114,757 | $ | 140,991 | $ | 130,638 | $ | 130,653 | $ | 128,609 | ||||||||||||||||||||||||||||||
Cost of revenue | 54,762 | 47,112 | 54,589 | 56,913 | 42,090 | 32,194 | 37,879 | 32,469 | 49,259 | 48,389 | 52,393 | 46,510 | 58,103 | 51,583 | 52,897 | 55,369 | ||||||||||||||||||||||||||||||||||||||||||||||
Intangibles amortization | 2,590 | 1,290 | 1,500 | 1,000 | 510 | 612 | 604 | 601 | 1,679 | 1,736 | 1,746 | 1,756 | 2,689 | 1,930 | 2,717 | 1,587 | ||||||||||||||||||||||||||||||||||||||||||||||
Gross profit | 74,088 | 74,241 | 66,138 | 66,747 | 65,099 | 58,100 | 57,475 | 54,259 | 80,478 | 73,338 | 71,400 | 66,491 | 80,199 | 77,125 | 75,039 | 71,653 | ||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketing and selling | 31,060 | 32,537 | 30,354 | 32,215 | 23,255 | 19,746 | 21,237 | 20,596 | 32,268 | 30,787 | 32,324 | 33,729 | 34,206 | 33,200 | 33,401 | 35,872 | ||||||||||||||||||||||||||||||||||||||||||||||
Research and development | 13,724 | 11,632 | 13,713 | 12,753 | 10,847 | 7,689 | 7,105 | 7,802 | 17,567 | 14,447 | 13,324 | 13,394 | 15,296 | 15,127 | 15,616 | 15,443 | ||||||||||||||||||||||||||||||||||||||||||||||
General and administrative | 16,923 | 17,329 | 24,156 | 16,016 | 13,652 | 12,821 | 11,923 | 12,481 | 15,261 | 15,394 | 12,690 | 16,306 | 13,632 | 15,799 | 23,721 | 17,448 | ||||||||||||||||||||||||||||||||||||||||||||||
Intangibles amortization | 7,330 | 3,882 | 3,885 | 4,074 | 2,243 | 2,409 | 2,197 | 2,134 | 3,844 | 3,751 | 3,763 | 3,786 | 9,151 | 4,477 | 4,151 | 4,806 | ||||||||||||||||||||||||||||||||||||||||||||||
Restructuring | — | 321 | 307 | 286 | 221 | 197 | 1,083 | 35 | 3,592 | 1,106 | 2,668 | 37,372 | 23,049 | 11,432 | 1,938 | 812 | ||||||||||||||||||||||||||||||||||||||||||||||
Total operating expenses | 69,037 | 65,701 | 72,415 | 65,344 | 50,218 | 42,862 | 43,545 | 43,048 | 72,532 | 65,485 | 64,769 | 104,587 | 95,334 | 80,035 | 78,827 | 74,381 | ||||||||||||||||||||||||||||||||||||||||||||||
Income from operations | 5,051 | 8,540 | (6,277 | ) | 1,403 | 14,881 | 15,238 | 13,930 | 11,211 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) from operations | 7,946 | 7,853 | 6,631 | (38,096 | ) | (15,135 | ) | (2,910 | ) | (3,788 | ) | (2,728 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Other income (expense), net | (2,300 | ) | 150 | (378 | ) | (1,039 | ) | 55 | (893 | ) | 25 | 456 | (670 | ) | (1,609 | ) | (1,200 | ) | (2,112 | ) | (2,754 | ) | (726 | ) | (2,398 | ) | (1,821 | ) | ||||||||||||||||||||||||||||||||||
Income before provision for income tax | 2,751 | 8,690 | (6,655 | ) | 364 | 14,936 | 14,345 | 13,955 | 11,667 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for income tax | 9,845 | 17,203 | (1,621 | ) | 16 | 4,705 | 1,032 | 3,443 | 3,129 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before provision for (benefit from) income tax | 7,276 | 6,244 | 5,431 | (40,208 | ) | (17,889 | ) | (3,636 | ) | (6,186 | ) | (4,549 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Provision for (benefit from) income tax (e) | 4,266 | (1,987 | ) | 1,944 | (9,809 | ) | (6,256 | ) | 1,940 | (3,609 | ) | (1,401 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (7,094 | ) | $ | (8,513 | ) | $ | (5,034 | ) | $ | 348 | $ | 10,231 | $ | 13,313 | $ | 10,512 | $ | 8,538 | $ | 3,010 | $ | 8,231 | $ | 3,487 | $ | (30,399 | ) | $ | (11,633 | ) | $ | (5,576 | ) | $ | (2,577 | ) | $ | (3,148 | ) | ||||||||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings (loss) per share: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | (0.22 | ) | $ | (0.26 | ) | $ | (0.15 | ) | $ | 0.01 | $ | 0.32 | $ | 0.41 | $ | 0.32 | $ | 0.26 | $ | 0.09 | $ | 0.24 | $ | 0.10 | $ | (0.91 | ) | $ | (0.35 | ) | $ | (0.17 | ) | $ | (0.08 | ) | $ | (0.10 | ) | ||||||||||||||||||||||
Diluted | $ | (0.22 | ) | $ | (0.26 | ) | $ | (0.15 | ) | $ | 0.01 | $ | 0.31 | $ | 0.40 | $ | 0.32 | $ | 0.26 | $ | 0.09 | $ | 0.24 | $ | 0.10 | $ | (0.91 | ) | $ | (0.35 | ) | $ | (0.17 | ) | $ | (0.08 | ) | $ | (0.10 | ) | ||||||||||||||||||||||
Weighted average shares used in the calculation of net earnings per share: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted average shares used in the calculation of net earnings (loss) per share: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | 32,648 | 32,593 | 32,529 | 32,485 | 32,405 | 32,388 | 32,438 | 32,606 | 33,691 | 33,655 | 33,639 | 33,590 | 33,495 | 33,321 | 32,859 | 32,760 | ||||||||||||||||||||||||||||||||||||||||||||||
Diluted | 32,648 | 32,593 | 32,529 | 33,040 | 33,009 | 32,981 | 32,983 | 33,222 | 33,829 | 33,738 | 33,690 | 33,590 | 33,495 | 33,321 | 32,859 | 32,760 |
(a) | Cost of revenue increased $0.1 million and $0.2 million for the quarters ended March 31, 2019 and June 30, 2019, respectively. Cost of revenue decreased $0.3 million for the quarter ended September 30, 2019. |
(b) | Marketing and selling expense increased $0.1 million for the quarter ended June 30, 2019 and decreased $0.1 million for the quarter ended September 30, 2019. |
(c) | Research and development expense increased $0.3 million, $0.6 million, and $0.3 million for the quarters ended March 31, 2019, June 30, 2019, and September 30, 2019 respectively. |
(d) | General and administrative expense increased $0.3 million for the quarter ended September 30, 2019. |
(e) | Provision for income tax decreased by $0.1 million, $0.2 million, and $6 thousand for the quarters ended March 31, 2019, June 30, 2019, and September 30, 2019, respectively. |
Name: | ($) Minimum Bonus | ($) Target Bonus | ($) Maximum Bonus |
James B. Hawkins, Chief Executive Officer | 400,000 | 800,000 | 1,600,00 |
Jonathan A. Kennedy, Senior Vice President Finance and Chief Financial Officer | 156,000 | 312,000 | 624,000 |
Austin A. Noll, III, Vice President, General Manager, Neurology | 90,000 | 180,000 | 360,000 |
Kenneth M. Traverso, Vice President, General Manager, Newborn Care (1) | 82,500 | 165,000 | 330,000 |
D. Christopher Chung, M.D., Vice President Medical Affairs, Quality and Regulatory Affairs | 60,000 | 120,000 | 240,000 |
Name | Grant Date | Estimated Future Payouts Under Non-Equity Incentive Plan Awards 1 Threshold Target Maximum ($)($)($) | All Other Stock Awards: Number of Shares of Stock or Units 2 | All Other Option Awards: Number of Securities Underlying Options | Exercise or Base Price of Option Awards ($/Share) | Grant Date Fair Value of Stock and Option Awards ($)3 | ||||
Mr. Hawkins | 01/02/2017 | 400,000 | 800,000 | 1,600,000 | 118,000 | $ | 4,106,400 | |||
Mr. Kennedy | 01/02/2017 | 156,000 | 312,000 | 624,000 | 32,000 | 1,113,600 | ||||
Mr. Noll | 01/02/2017 | 90,000 | 180,000 | 360,000 | 16,000 | 556,800 | ||||
Dr. Chung | 01/02/2017 | 60,000 | 120,000 | 240,000 | 9,200 | 320,160 | ||||
Mr. Traverso | 01/02/2017 | 82,500 | 65,000 | 330,000 | 14,400 | 501,120 |
Option Awards 1 | Stock Awards | |||||
Name | Number of Securities Underlying Unexercised Options (#) Exercisable | Number of Securities Underlying Unexercised Options (#) Unexercisable | Option Exercise Price ($) | Option Expiration Date | Number of Shares or Units of Stock That Have Not Vested (#) | Market Value of Shares or Units of Stock That Have Not Vested ($) 3 |
Mr. Hawkins | 160,000 150,000 107,708 | -- -- 2,292 | 10.69 14.34 22.50 | 06/07/20182 06/03/20192 01/01/20202 | 181,455 | 6,931,581 |
Mr. Kennedy | 31,345 16,767 | -- 833 | 13.24 22.50 | 04/08/20192 01/01/20202 | 48,990 | 649,018 |
Mr. Noll | 9,375 14,250 19,583 | -- -- 417 | 11.92 14.34 22.50 | 06/07/20182 02/14/20192 01/01/20202 | 24,950 | 953,090 |
Dr. Chung | 15,358 16,000 13,708 | -- -- 292 | 10.69 14.34 22.50 | 06/07/20182 06/07/20192 01/01/20202 | 14,495 | 553,709 |
Mr. Traverso | 36,000 30,000 19,583 | -- -- 417 | 10.69 14.34 22.50 | 06/07/20182 06/07/20192 01/01/20202 | 22,770 | 869,814 |
Option Awards | Stock Awards | |||||
Name | Number of Shares Acquired on Exercise (#) | Value Realized on Exercise ($) | Number of Shares Acquired on Vesting (#) 1 | Value Realized on Vesting ($) 1 | ||
Mr. Hawkins | -- | -- | 148,705 | 5,425,244 | ||
Mr. Kennedy | -- | -- | 53,990 | 2,009,868 | ||
Mr. Noll | -- | -- | 24,700 | 895,565 | ||
Mr. Chung | 12,642 | 407,333 | 14,795 | 537,519 | ||
Mr. Traverso | 32,000 | 633,738 | 22,870 | 830,397 |
Name | Cash Severance Payment | Continuation of Medical and Welfare Benefits | Acceleration of Equity Awards 1 | Total Termination Benefits |
Mr. Hawkins | $2,440,000 | $42,030 | $6,967,565 | $9,449,595 |
Mr. Kennedy | 810,000 | 38,543 | 1,884,496 | 2,773,039 |
Mr. Noll | 550,000 | 38,543 | 959,637 | 1,548,180 |
Dr. Chung | 430,000 | 38,543 | 558,293 | 1,026,836 |
Mr. Traverso | 505,000 | 38,543 | 876,361 | 1,419,904 |
Name | Fees Earned or Paid in Cash ($) 1 | Stock Awards ($) 2 | Option Awards ($) 2, 3 | Total ($) |
Mr. Gunst | 166,000 | 149,468 | -- | 312,985 |
Ms. Engibous4 | 88,775 | 149,468 | -- | 235,760 |
Mr. Ludlum5 | 101,000 | 149,468 | -- | 247,985 |
Mr. Moore6 | 95,549 | 149,468 | -- | 242,534 |
Ms. Paul7 | 77,218 | 149,468 | -- | 224,203 |
Plan Category | Number of Securities to be Issued upon Exercise of Outstanding Options, Warrants, Awards and Rights | Weighted-Average Exercise Price of Outstanding Options, Warrants, Awards and Rights | Number of Securities Remaining Available for Future Issuance under Equity Compensation Plans (excluding securities reflected in the first column) | Number of Securities to be Issued upon Exercise of Outstanding Options, Warrants, Awards and Rights | Weighted-Average Exercise Price of Outstanding Options, Warrants, Awards and Rights | Number of Securities Remaining Available for Future Issuance under Equity Compensation Plans (excluding securities reflected in the first column) | ||||||||||||||
Equity compensation plans approved by security holders | 819,073 | $ | 15.18 | 779,298 | 247,029 | $ | 35.31 | 2,764,603 | ||||||||||||
Equity compensation plans not approved by security holders | — | — | — | — | — | — | ||||||||||||||
Total | 819,073 | 15.18 | 779,298 | 247,029 | 35.31 | 2,764,603 |
Name and Address of Beneficial Owner | Shares Beneficially Owned | Right to acquire beneficial ownership under options exercisable within 60 days | Total Beneficially Owned | Percent of Class |
Principal Stockholders | ||||
BlackRock, Inc. 55 East 52nd Street New York, NY 10055 (1) | 4,032,681 | -- | 4,032,681 | 12.2% |
Dimensional Fund Advisors LP Building One 6300 Bee Cave Road Austin, TX 78746 (2) | 1,619,337 | -- | 1,619,337 | 4.9% |
Janus Henderson Group plc (3) | 2,164,927 | -- | 2,164,927 | 6.5% |
Silvercrest Asset Management Group LLC 1330 Avenue of the Americas, 38th Floor New York, NY 10019 (4) | 1,587,355 | -- | 1,587,355 | 4.8% |
Vanguard Group, Inc. 100 Vanguard Blvd. Malvern, PA 19355 (5) | 2,245,064 | -- | 2,245,064 | 6.8% |
Wellington Management Group LLP 280 Congress Street Boston, MA 02210 (6) | 1,924,157 | -- | 1,924,157 | 5.8% |
Directors, Nominees and Named Executive Officers | ||||
Mr. Noll (7) | 81,901 | 43,625 | 125,526 | * |
Dr. Chung (8) | 136,373 | 45,358 | 181,731 | * |
Ms. Engibous (9) | 21,750 | 13,000 | 34,750 | * |
Mr. Gunst (10) | 50,850 | 13,000 | 63,850 | * |
Mr. Hawkins (11) | 639,257 | 420,000 | 1,059,257 | 3.1% |
Mr. Ludlum (12) | 88,825 | 8,000 | 97,825 | * |
Mr. Moore (13) | 123,962 | 8,000 | 131,962 | * |
Mr. Kennedy (14) | 107,588 | 48,945 | 156,533 | * |
Mr. Traverso (15) | 107,889 | 86,000 | 193,889 | * |
Dr. Paul (16) | 7,460 | -- | 7,460 | * |
Officers and Directors as a group (17) | 1,366,865 | 642,303 | 1,927,267 | 6.0% |
2016 | 2017 | ||
Audit Fees (1) | $ 1,891,679 | $ 3,058,102 | |
Audit-Related Fees (2) | — | 70,345 | |
Tax Fees (3) | 35,473 | 35,024 | |
All Other Fees (4) | 1,780 | 1,780 | |
Total | $ 1,928,933 | $ 3,165,251 |
Balance at Beginning of Period | Additions Charged to Expense | Deductions | Balance at End of Period | ||||||||||||
Year ended December 31, 2019 | |||||||||||||||
Allowance for doubtful accounts | $ | 6,960 | $ | 1,584 | $ | (1,160 | ) | $ | 7,384 | ||||||
Valuation allowance | 637 | — | (31 | ) | 606 | ||||||||||
Warranty reserve | 9,391 | 3,949 | (6,936 | ) | 6,404 | ||||||||||
Year ended December 31, 2018 | |||||||||||||||
Allowance for doubtful accounts | $ | 8,978 | $ | 6,423 | $ | (8,441 | ) | $ | 6,960 | ||||||
Valuation allowance | 5,862 | — | (5,225 | ) | 637 | ||||||||||
Warranty reserve | 10,995 | 4,487 | (6,091 | ) | 9,391 | ||||||||||
Year ended December 31, 2017 | |||||||||||||||
Allowance for doubtful accounts | $ | 4,182 | $ | 10,017 | $ | (5,221 | ) | $ | 8,978 | ||||||
Valuation allowance | 3,706 | 2,156 | — | 5,862 | |||||||||||
Warranty reserve | 10,670 | 5,370 | (5,045 | ) | 10,995 |
Balance at Beginning of Period | Additions Charged to Expense | Deductions | Balance at End of Period | ||||||||||||
Year ended December 31, 2017 | |||||||||||||||
Allowance for doubtful accounts | $ | 4,182 | $ | 10,017 | $ | (5,221 | ) | $ | 8,978 | ||||||
Valuation allowance | 3,706 | 2,156 | — | 5,862 | |||||||||||
Year ended December 31, 2016 | |||||||||||||||
Allowance for doubtful accounts | $ | 4,686 | $ | 1,123 | $ | (1,627 | ) | $ | 4,182 | ||||||
Valuation allowance | 3,972 | — | (266 | ) | 3,706 | ||||||||||
Year ended December 31, 2015 | |||||||||||||||
Allowance for doubtful accounts | $ | 4,324 | $ | 1,496 | $ | (1,134 | ) | $ | 4,686 | ||||||
Valuation allowance | 3,151 | 821 | — | 3,972 |
Incorporated By Reference | |||||||||||
Exhibit No. | Exhibit | Filing | Exhibit No. | File No. | File Date | ||||||
3.1 | Natus Medical Incorporated Amended and Restated Certificate of Incorporation | S-1 | 3.1.1 | 333-44138 | 8/18/2000 | ||||||
3.2 | Certificate of Amendment of the Amended and Restated Certificate of Incorporation | 8-K | 3.1 | 000-33001 | 9/13/2012 | ||||||
3.3 | Natus Medical Incorporated Certificate of Designation of Rights, Preferences and Privileges of Series A Participating Preferred Stock | 8-A | 3.1.2 | 000-33001 | 9/6/2002 | ||||||
3.4 | Bylaws of Natus Medical Incorporated | 8-K | 3.1 | 000-33001 | 6/18/2008 | ||||||
3.5 | Amended and Restated Bylaws of Natus Medical Incorporated | 10-Q | 3.1 | 000-33001 | 5/9/2012 | ||||||
10.1 | Form of Indemnification Agreement between Natus Medical Incorporated and each of its directors and officers | S-1 | 10.1 | 333-44138 | 8/18/2000 | ||||||
10.2* | Natus Medical Incorporated Amended and Restated 2000 Stock Awards Plan | 8-K | 10.1 | 000-33001 | 1/4/2006 | ||||||
10.2.1* | Form of Option Agreement under the Amended and Restated 2000 Stock Awards Plan | S-1 | 10.3.1 | 333-44138 | 8/18/2000 | ||||||
10.2.2* | Form of Restricted Stock Purchase Agreement under the Amended and Restated 2000 Stock Awards Plan | 10-Q | 10.2 | 000-33001 | 8/9/2006 | ||||||
10.2.3* | Form of Restricted Stock Unit Agreement under the Amended and Restated 2000 Stock Awards Plan | 10-K | 10.2.3 | 000-33001 | 3/14/2008 | ||||||
10.3* | Natus Medical Incorporated 2000 Director Option Plan | 10-Q | 10.02 | 000-33001 | 5/9/2008 | ||||||
10.3.1* | Form of Option Agreement under the 2000 Director Option Plan | S-1 | 10.4.1 | 333-44138 | 8/18/2000 | ||||||
10.4* | Natus Medical Incorporated 2000 Supplemental Stock Option Plan | S-1 | 10.15 | 333-44138 | 2/9/2001 | ||||||
10.4.1* | Form of Option Agreement for 2000 Supplemental Stock Option Plan | S-1 | 10.15.1 | 333-44138 | 2/9/2001 | ||||||
10.5* | Natus Medical Incorporated 2000 Employee Stock Purchase Plan and form of subscription agreement thereunder | 8-K | 10.2 | 000-33001 | 1/4/2006 | ||||||
10.6* | [Amended] 2011 Stock Awards Plan | 14-A | — | 000-33001 | 4/20/2011 | ||||||
10.6.1* | Form of Stock Option Award Agreement under the [Amended] 2011 Stock Plan | 10-Q | 10.1 | 000-33001 | 11/7/2011 | ||||||
10.6.2* | Form of Restricted Stock Award Purchase Agreement | 10-Q | 10.2 | 000-33001 | 11/7/2011 | ||||||
10.6.3* | Form of Restricted Stock Unit Agreement | 10-Q | 10.3 | 000-33001 | 11/7/2011 | ||||||
10.7* | 2011 Employee Stock Purchase Plan | 14-A | — | 000-33001 | 4/20/2011 | ||||||
10.7.1* | 2011 Employee Stock Purchase Plan Subscription Agreement | 14-A | — | 000-33001 | 4/20/2011 | ||||||
10.8* | Form of Employment Agreement between Natus Medical Incorporated and each of its executive officers other than its Chief Executive Officer and Chief Financial Officer | 10-K | 10.10 | 000-33001 | 3/10/2009 |
Incorporated By Reference | |||||||||||
Exhibit No. | Exhibit | Filing | Exhibit No. | File No. | File Date | ||||||
10.8.1* | Form of Amendment to Employment Agreement between Natus Medical Incorporated and each of its executive officers other than its Chief Executive Officer and Chief Financial Officer | 10-K | 000-33001 | 3/16/2015 | |||||||
10.9* | Amended employment agreement between Natus Medical Incorporated and its Chief Executive Officer, James B. Hawkins dated April 19, 2013 | 8-K | 99.1 | 000-33001 | 4/22/2013 | ||||||
10.10* | Form of Employment Agreement between Natus Medical Incorporated and Jonathan A. Kennedy dated April 8, 2013 | 10-Q | 10.1 | 000-33001 | 8/8/2013 | ||||||
10.11 | Credit Agreement between Natus Medical Incorporated and CitiBank, NA dated October 9, 2015 | 8-K | 10.1 | 000-33001 | 10/9/2015 | ||||||
10.12 | Agreement For the Acquisition of Medical Devices between Medix ICSA and the Ministry of Health of the Republic of Venezuela dated October 15, 2015 | 10-Q | 000-33001 | 2/29/2016 | |||||||
10.13 | Amendment to Agreement For the Acquisition of Medical Devices between Medix ICSA and the Ministry of Health of the Republic of Venezuela dated October 15, 2015 | 10-Q | 10.2 | 000-33001 | 11/3/2016 | ||||||
10.14 | Credit Agreement, dated September 23, 2016, between the Company, JP Morgan Chase Bank, N.A. and Citibank, N.A. | 10-Q | 10.1 | 000-33001 | 11/3/2016 | ||||||
10.15 | Master Purchase Agreement, dated September 25, 2016, between GN Hearing A/S, GN Nord A/S and the Company | 10-Q | 10.3 | 000-33001 | 11/3/2016 | ||||||
16.1 | Letter Regarding Change in Certifying Accountant | 8-K | 16.1 | 000-33001 | 3/28/2014 | ||||||
21.1 | Significant Subsidiaries of the Registrant | ||||||||||
23.1 | Consent of Independent Registered Public Accounting Firm | ||||||||||
24.1 | Power of Attorney | ||||||||||
31.5 | Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||||||||||
31.6 | Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||||||||||
32.3 | Certification of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||||||||||
101.INS | XBRL Instance Document | ||||||||||
101.SCH | XBRL Taxonomy Extension Schema Document | ||||||||||
101.CAL | XBRL Taxonomy Extension Label Calculation Linkbase Document |
Incorporated By Reference | |||||||||||
Exhibit No. | Exhibit | Filing | Exhibit No. | File No. | File Date | ||||||
3.1 | Natus Medical Incorporated Restated Certificate of Incorporation, as filed with the Delaware Secretary of State as of July 25, 2001 | S-1 | 3.1.1 | 333-44138 | 8/18/2000 | ||||||
3.2 | Certificate of Amendment of the Amended and Restated Certificate of Incorporation, as filed with the Delaware Secretary of State as of September 12, 2012 | 8-K | 3.1 | 000-33001 | 9/13/2012 | ||||||
3.3 | Certificate of Amendment of the Amended and Restated Certificate of Incorporation, as filed with the Delaware Secretary of State as of June 5, 2019 | 8-K | 3.1 | 000-33001 | 6/7/2019 | ||||||
3.4 | Second Amended and Restated Bylaws of Natus Medical Incorporated | 8-K | 3.1 | 000-33001 | 12/16/2019 | ||||||
4.1 | Specimen stock certificate for shares of common stock, par value $0.001 per share | S-1/A | 4.1 | 333-44138 | 2/9/2001 | ||||||
4.2 | Natus Medical Incorporated Certificate of Designation of Rights, Preferences and Privileges of Series A Participating Preferred Stock | 8-A | 3.1.2 | 000-33001 | 9/6/2002 | ||||||
4.3 | Description of Common Stock | ||||||||||
10.1 | Form of Indemnification Agreement between Natus Medical Incorporated and each of its directors and officers | S-1 | 10.1 | 333-44138 | 8/18/2000 | ||||||
10.1.1* | 2018 Equity Incentive Plan | 8-K | 10.1 | 000-33001 | 12/18/2018 | ||||||
10.1.2* | Form of Stock Option Awards Agreement under the 2018 Equity Incentive Plan | 8-K | 10.1.1 | 000-33001 | 12/18/2018 | ||||||
10.1.3* | Form of Restricted Stock Award Agreement under the 2018 Equity Incentive Plan | 8-K | 10.1.2 | 000-33001 | 12/18/2018 | ||||||
10.1.4 | Form of Restricted Stock Unit Agreement under the 2018 Equity Incentive Plan | 8-K | 10.1.3 | 000-33001 | 12/18/2018 | ||||||
10.1.5* | Form of Performance Stock Unit Agreement under the 2018 Equity Incentive Plan | 8-K | 10.1.4 | 000-33001 | 12/18/2018 | ||||||
10.2* | Natus Medical Incorporated Amended and Restated 2000 Stock Awards Plan | 8-K | 10.1 | 000-33001 | 1/4/2006 | ||||||
10.2.1* | Form of Option Agreement under the Amended and Restated 2000 Stock Awards Plan | S-1 | 10.3.1 | 333-44138 | 8/18/2000 | ||||||
10.2.2* | Form of Restricted Stock Purchase Agreement under the Amended and Restated 2000 Stock Awards Plan | 10-Q | 10.2 | 000-33001 | 8/9/2006 | ||||||
10.2.3* | Form of Restricted Stock Unit Agreement under the Amended and Restated 2000 Stock Awards Plan | 10-K | 10.2.3 | 000-33001 | 3/14/2008 | ||||||
10.3* | Natus Medical Incorporated 2000 Director Option Plan | 10-Q | 10.02 | 000-33001 | 5/9/2008 | ||||||
10.3.1* | Form of Option Agreement under the 2000 Director Option Plan | S-1 | 10.4.1 | 333-44138 | 8/18/2000 | ||||||
10.4* | Natus Medical Incorporated 2000 Supplemental Stock Option Plan | S-1 | 10.15 | 333-44138 | 2/9/2001 | ||||||
10.4.1* | Form of Option Agreement for 2000 Supplemental Stock Option Plan | S-1 | 10.15.1 | 333-44138 | 2/9/2001 | ||||||
10.5* | Natus Medical Incorporated 2000 Employee Stock Purchase Plan and form of subscription agreement thereunder | 8-K | 10.2 | 000-33001 | 1/4/2006 | ||||||
10.6* | [Amended] 2011 Stock Awards Plan | 14-A | — | 000-33001 | 4/20/2011 |
Incorporated By Reference | |||||||||||
Exhibit No. | Exhibit | Filing | Exhibit No. | File No. | File Date | ||||||
10.6.1* | Form of Stock Option Award Agreement under the [Amended] 2011 Stock Plan | 10-Q | 10.1 | 000-33001 | 11/7/2011 | ||||||
10.6.2* | Form of Restricted Stock Award Purchase Agreement | 10-Q | 10.2 | 000-33001 | 11/7/2011 | ||||||
10.6.3* | Form of Restricted Stock Unit Agreement | 10-Q | 10.3 | 000-33001 | 11/7/2011 | ||||||
10.7* | 2011 Employee Stock Purchase Plan | 14-A | — | 000-33001 | 4/20/2011 | ||||||
10.7.1* | 2011 Employee Stock Purchase Plan Subscription Agreement | 14-A | — | 000-33001 | 4/20/2011 | ||||||
10.8* | Form of Employment Agreement between Natus Medical Incorporated and each of its executive officers other than its Chief Executive Officer and Chief Financial Officer | 10-K | 10.10 | 000-33001 | 3/10/2009 | ||||||
10.8.1* | Form of Amendment to Employment Agreement between Natus Medical Incorporated and each of its executive officers other than its Chief Executive Officer and Chief Financial Officer | 10-K | 000-33001 | 3/16/2015 | |||||||
10.9* | Amended employment agreement between Natus Medical Incorporated and its Chief Executive Officer, James B. Hawkins dated April 19, 2013 | 8-K | 99.1 | 000-33001 | 4/22/2013 | ||||||
10.10* | Terms of Resignation between Natus Medical Incorporated and James B. Hawkins dated July 11, 2018 | 10-Q | 10.16 | 000-33001 | 8/8/2018 | ||||||
10.11 | Credit Agreement between Natus Medical Incorporated and CitiBank, NA dated October 9, 2015 | 8-K | 10.1 | 000-33001 | 10/9/2015 | ||||||
10.12 | Agreement For the Acquisition of Medical Devices between Medix ICSA and the Ministry of Health of the Republic of Venezuela dated October 15, 2015 | 10-Q | 000-33001 | 2/29/2016 | |||||||
10.13 | Amendment to Agreement For the Acquisition of Medical Devices between Medix ICSA and the Ministry of Health of the Republic of Venezuela dated October 15, 2015 | 10-Q | 10.2 | 000-33001 | 11/3/2016 | ||||||
10.14 | Credit Agreement, dated September 23, 2016, between the Company, JP Morgan Chase Bank, N.A. and Citibank, N.A. | 10-Q | 10.1 | 000-33001 | 11/3/2016 | ||||||
10.15 | Master Purchase Agreement, dated September 25, 2016, between GN Hearing A/S, GN Nord A/S and the Company | 10-Q | 10.3 | 000-33001 | 11/3/2016 | ||||||
10.16* | Forms of Employment Agreement between Natus Medical Incorporated and Jonathan A. Kennedy dated August 24, 2018 | 8-K | 99.1 | 000-33001 | 8/29/2018 | ||||||
10.17* | Form of Employment Agreement between Natus Medical Incorporated and Drew Davies dated October 1, 2018 | 10-Q | 10.18 | 000-33001 | 11/8/2018 | ||||||
21.1 | Significant Subsidiaries of the Registrant | ||||||||||
23.1 | Consent of Independent Registered Public Accounting Firm | ||||||||||
24.1 | Power of Attorney (included on signature page) | ||||||||||
31.1 | Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
Incorporated By Reference | ||||||||||
Exhibit No. | Exhibit | Filing | Exhibit No. | File No. | File Date | |||||
The following financial information from Natus Medical Incorporated Annual Report on Form 10-K for the fiscal year ended December 31, 2019, formatted in XBRL | ||||||||||
104 | The cover page of the Annual Report on Form 10-K formatted in Inline XBRL (included in Exhibit 101). |
NATUS MEDICAL INCORPORATED | ||
By | /s/ JONATHAN A. KENNEDY | |
Jonathan A. Kennedy President and Chief Executive Officer | ||
By | /s/ B. DREW DAVIES | |
B. Drew Davies Executive Vice President and Chief Financial Officer |
Signature | Title | Date | ||
/S/ JONATHAN A. KENNEDY | President and Chief Executive Officer (Principal Executive Officer) | March 2, 2020 | ||
(Jonathan A. Kennedy) | ||||
/S/ B. DREW DAVIES | Executive Vice President & Chief Financial Officer (Principal Financial and Accounting Officer) | March 2, 2020 | ||
(B. Drew Davies) | ||||
/S/ BARBARA R. PAUL | Chairperson of the Board of Directors | March 2, 2020 | ||
(Barbara R. Paul) | ||||
/S/ LISA W. HEINE | Director | March 2, 2020 | ||
(Lisa W. Heine) | ||||
/S/ JOSHUA H. LEVINE | Director | March 2, 2020 | ||
(Joshua H. Levine) | ||||
/S/ KENNETH E. LUDLUM | Director | March 2, 2020 | ||
(Kenneth E. Ludlum) | ||||
/S/ ALICE D. SCHROEDER | Director | March 2, 2020 | ||
(Alice D. Schroeder) | ||||
/S/ THOMAS J. SULLIVAN | Director | March 2, 2020 | ||
(Thomas J. Sullivan) |
December 31, | December 31, | |||||||||||||
2017 | 2016 | 2019 | 2018 | |||||||||||
ASSETS | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 88,950 | $ | 213,551 | $ | 63,297 | $ | 56,373 | ||||||
Short-term investments | — | 34,019 | ||||||||||||
Accounts receivable, net of allowance for doubtful accounts of $8,978 and $4,182 | 126,809 | 86,638 | ||||||||||||
Accounts receivable, net of allowance for doubtful accounts of $7,384 and $6,960 | 115,889 | 127,041 | ||||||||||||
Inventories | 71,529 | 49,587 | 71,368 | 79,736 | ||||||||||
Prepaid expenses and other current assets | 18,340 | 22,004 | 19,195 | 22,625 | ||||||||||
Total current assets | 305,628 | 405,799 | 269,749 | 285,775 | ||||||||||
Property and equipment, net | 22,071 | 17,333 | 24,702 | 22,913 | ||||||||||
Operating lease right-of-use assets | 15,046 | — | ||||||||||||
Intangible assets, net | 172,582 | 77,165 | 114,799 | 139,453 | ||||||||||
Goodwill | 172,998 | 113,112 | 146,367 | 147,644 | ||||||||||
Deferred income tax | 10,709 | 14,915 | 30,355 | 22,639 | ||||||||||
Other assets | 25,931 | 20,688 | 21,509 | 19,716 | ||||||||||
Total assets | $ | 709,919 | $ | 649,012 | $ | 622,527 | $ | 638,140 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | $ | 25,242 | $ | 18,700 | $ | 27,253 | $ | 28,805 | ||||||
Current portion of long-term debt | 35,000 | 35,000 | ||||||||||||
Current portion of operating lease liabilities | 5,871 | — | ||||||||||||
Accrued liabilities | 51,738 | 37,895 | 54,451 | 52,568 | ||||||||||
Deferred revenue | 15,157 | 23,346 | 20,246 | 17,073 | ||||||||||
Total current liabilities | 92,137 | 79,941 | 142,821 | 133,446 | ||||||||||
Long-term liabilities: | ||||||||||||||
Other liabilities | 21,995 | 8,013 | 17,616 | 19,845 | ||||||||||
Long-term debt | 154,283 | 140,000 | 19,665 | 69,474 | ||||||||||
Operating lease liabilities | 12,051 | — | ||||||||||||
Deferred income tax | 19,407 | 3,684 | 14,251 | 16,931 | ||||||||||
Total liabilities | 287,822 | 231,638 | 206,404 | 239,696 | ||||||||||
Commitments and contingencies (Note 20) | ||||||||||||||
Commitments and contingencies (Note 21) | ||||||||||||||
Stockholders’ equity: | ||||||||||||||
Common stock, $0.001 par value; 120,000,000 shares authorized; shares issued and outstanding 33,134,101 in 2017 and 32,920,246 in 2016 | 316,577 | 312,986 | ||||||||||||
Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued and outstanding in 2017 and in 2016 | — | — | ||||||||||||
Common stock, $0.001 par value; 120,000,000 shares authorized; shares issued and outstanding 34,148,700 in 2019 and 33,804,379 in 2018 | 344,476 | 334,215 | ||||||||||||
Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued and outstanding in 2019 and in 2018 | — | — | ||||||||||||
Retained earnings | 129,115 | 149,408 | 87,922 | 102,261 | ||||||||||
Accumulated other comprehensive loss | (23,595 | ) | (45,020 | ) | (16,275 | ) | (38,032 | ) | ||||||
Total stockholders’ equity | 422,097 | 417,374 | 416,123 | 398,444 | ||||||||||
Total liabilities and stockholders’ equity | $ | 709,919 | $ | 649,012 | $ | 622,527 | $ | 638,140 |
Years Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Revenue | $ | 495,175 | $ | 530,891 | $ | 500,970 | |||||
Cost of revenue | 196,551 | 217,952 | 213,376 | ||||||||
Intangibles amortization | 6,916 | 8,924 | 6,380 | ||||||||
Gross profit | 291,708 | 304,015 | 281,214 | ||||||||
Operating expenses: | |||||||||||
Marketing and selling | 129,109 | 136,680 | 126,166 | ||||||||
Research and development | 58,733 | 61,482 | 51,822 | ||||||||
General and administrative | 59,649 | 70,599 | 74,424 | ||||||||
Intangibles amortization | 15,144 | 22,585 | 19,171 | ||||||||
Restructuring | 44,739 | 37,231 | 914 | ||||||||
Total operating expenses | 307,374 | 328,577 | 272,497 | ||||||||
Income (loss) from operations | (15,666 | ) | (24,562 | ) | 8,717 | ||||||
Other expense, net | (5,591 | ) | (7,698 | ) | (3,567 | ) | |||||
Income (loss) before provision (benefit) for income tax | (21,257 | ) | (32,260 | ) | 5,150 | ||||||
Provision (benefit) for income tax | (5,586 | ) | (9,325 | ) | 25,443 | ||||||
Net loss | $ | (15,671 | ) | $ | (22,935 | ) | $ | (20,293 | ) | ||
Net loss per share: | |||||||||||
Basic | $ | (0.47 | ) | $ | (0.69 | ) | $ | (0.62 | ) | ||
Diluted | $ | (0.47 | ) | $ | (0.69 | ) | $ | (0.62 | ) | ||
Weighted average shares used in the calculation of net loss per share: | |||||||||||
Basic | 33,696 | 33,111 | 32,564 | ||||||||
Diluted | 33,696 | 33,111 | 32,564 |
Years Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Revenue | $ | 500,970 | $ | 381,892 | $ | 375,865 | |||||
Cost of revenue | 213,376 | 144,632 | 145,492 | ||||||||
Intangibles amortization | 6,380 | 2,327 | 2,836 | ||||||||
Gross profit | 281,214 | 234,933 | 227,537 | ||||||||
Operating expenses: | |||||||||||
Marketing and selling | 126,166 | 84,834 | 87,675 | ||||||||
Research and development | 51,822 | 33,443 | 30,434 | ||||||||
General and administrative | 74,424 | 50,877 | 46,363 | ||||||||
Intangibles amortization | 19,171 | 8,983 | 7,447 | ||||||||
Restructuring | 914 | 1,536 | 2,145 | ||||||||
Total operating expenses | 272,497 | 179,673 | 174,064 | ||||||||
Income from operations | 8,717 | 55,260 | 53,473 | ||||||||
Other income (expense), net | (3,567 | ) | (357 | ) | (1,064 | ) | |||||
Income before provision for income tax | 5,150 | 54,903 | 52,409 | ||||||||
Provision for income tax | 25,443 | 12,309 | 14,485 | ||||||||
Net income (loss) | $ | (20,293 | ) | $ | 42,594 | $ | 37,924 | ||||
Net income (loss) per share: | |||||||||||
Basic | $ | (0.62 | ) | $ | 1.31 | $ | 1.17 | ||||
Diluted | $ | (0.62 | ) | $ | 1.29 | $ | 1.14 | ||||
Weighted average shares used in the calculation of net income (loss) per share: | |||||||||||
Basic | 32,564 | 32,460 | 32,348 | ||||||||
Diluted | 32,564 | 33,056 | 33,241 | ||||||||
Other Comprehensive income: | |||||||||||
Unrealized losses on available-for-sale investments | $ | (45 | ) | $ | (168 | ) | $ | — | |||
Foreign currency translation adjustment | 21,470 | (5,003 | ) | (8,378 | ) | ||||||
Total other comprehensive income | 21,425 | (5,171 | ) | (8,378 | ) | ||||||
Comprehensive income | $ | 1,132 | $ | 37,423 | $ | 29,546 |
Years Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Net loss | (15,671 | ) | (22,935 | ) | (20,293 | ) | |||||
Other comprehensive income (loss): | |||||||||||
Unrealized losses on available-for-sale investments | $ | — | $ | — | $ | (45 | ) | ||||
Foreign currency translation adjustment | (1,576 | ) | (14,360 | ) | 21,470 | ||||||
Interest rate swap designated as a cash flow hedge | (180 | ) | (77 | ) | — | ||||||
Reclassification of stranded tax effects upon adoption of ASU 2018-02 | (1,332 | ) | — | — | |||||||
Reclassification of deferred foreign currency related adjustments related to the sale of Medix (See FN 23) | 24,845 | — | — | ||||||||
Total other comprehensive income (loss) | 21,757 | (14,437 | ) | 21,425 | |||||||
Comprehensive income (loss) | $ | 6,086 | $ | (37,372 | ) | $ | 1,132 |
Common Stock | Retained Earnings | Accumulated Other Comprehensive Loss | Stockholders’ Equity | Common Stock | Retained Earnings | Accumulated Other Comprehensive Loss | Stockholders’ Equity | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||
Balances, December 31, 2014 | 32,649,158 | $ | 315,296 | $ | 68,890 | $ | (31,471 | ) | $ | 352,715 | ||||||||||||||||||||||||||
Tax benefit of options exercises | — | 7,104 | — | — | 7,104 | |||||||||||||||||||||||||||||||
Vesting of restricted stock units | 21,619 | — | — | — | — | |||||||||||||||||||||||||||||||
Net issuance of restricted stock awards | 199,620 | — | — | — | — | |||||||||||||||||||||||||||||||
Employee stock purchase plan | 35,467 | 1,251 | — | — | 1,251 | |||||||||||||||||||||||||||||||
Stock-based compensation expense | — | 6,953 | — | — | 6,953 | |||||||||||||||||||||||||||||||
Repurchase of company stock | (281,915 | ) | (11,526 | ) | — | — | (11,526 | ) | ||||||||||||||||||||||||||||
Taxes paid related to net share settlement of equity awards | (102,112 | ) | (4,341 | ) | — | — | (4,341 | ) | ||||||||||||||||||||||||||||
Exercise of stock options | 631,663 | 9,008 | — | — | 9,008 | |||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | (8,378 | ) | (8,378 | ) | |||||||||||||||||||||||||||||
Net income | — | — | 37,924 | — | 37,924 | |||||||||||||||||||||||||||||||
Balances, December 31, 2015 | 33,153,500 | $ | 323,745 | $ | 106,814 | $ | (39,849 | ) | $ | 390,710 | ||||||||||||||||||||||||||
Vesting of restricted stock units | 20,937 | — | — | — | — | |||||||||||||||||||||||||||||||
Net issuance of restricted stock awards | 191,492 | — | — | — | — | |||||||||||||||||||||||||||||||
Employee stock purchase plan | 45,515 | 1,360 | — | — | 1,360 | |||||||||||||||||||||||||||||||
Stock-based compensation expense | — | 9,008 | — | — | 9,008 | |||||||||||||||||||||||||||||||
Repurchase of company stock | (545,109 | ) | (19,289 | ) | — | — | (19,289 | ) | ||||||||||||||||||||||||||||
Taxes paid related to net share settlement of equity awards | (97,231 | ) | (4,107 | ) | — | — | (4,107 | ) | ||||||||||||||||||||||||||||
Exercise of stock options | 151,142 | 2,269 | — | — | 2,269 | |||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | (5,171 | ) | (5,171 | ) | |||||||||||||||||||||||||||||
Net income | — | — | 42,594 | — | 42,594 | |||||||||||||||||||||||||||||||
Balances, December 31, 2016 | 32,920,246 | $ | 312,986 | $ | 149,408 | $ | (45,020 | ) | $ | 417,374 | 32,920,246 | $ | 312,986 | $ | 149,408 | $ | (45,020 | ) | $ | 417,374 | ||||||||||||||||
Vesting of restricted stock units | 35,929 | — | — | — | — | 35,929 | — | — | — | — | ||||||||||||||||||||||||||
Net issuance of restricted stock awards | 249,366 | — | — | — | — | 249,366 | — | — | — | — | ||||||||||||||||||||||||||
Employee stock purchase plan | 48,470 | 1,581 | — | — | 1,581 | 48,470 | 1,581 | — | — | 1,581 | ||||||||||||||||||||||||||
Stock-based compensation expense | — | 9,445 | — | — | 9,445 | — | 9,445 | — | — | 9,445 | ||||||||||||||||||||||||||
Repurchase of company stock | (60,800 | ) | (2,268 | ) | — | — | (2,268 | ) | (60,800 | ) | (2,268 | ) | — | — | (2,268 | ) | ||||||||||||||||||||
Taxes paid related to net share settlement of equity awards | (193,212 | ) | (7,052 | ) | — | — | (7,052 | ) | (193,212 | ) | (7,052 | ) | — | — | (7,052 | ) | ||||||||||||||||||||
Exercise of stock options | 134,102 | 1,885 | — | — | 1,885 | 134,102 | 1,885 | — | — | 1,885 | ||||||||||||||||||||||||||
Other comprehensive income | — | — | — | 21,425 | 21,425 | — | — | — | 21,425 | 21,425 | ||||||||||||||||||||||||||
Net loss | — | — | (20,293 | ) | — | (20,293 | ) | — | — | (20,293 | ) | — | (20,293 | ) | ||||||||||||||||||||||
Balances, December 31, 2017 | 33,134,101 | $ | 316,577 | $ | 129,115 | $ | (23,595 | ) | $ | 422,097 | 33,134,101 | $ | 316,577 | $ | 129,115 | $ | (23,595 | ) | $ | 422,097 | ||||||||||||||||
Cumulative-effect adjustment for ASU 2016-16 | — | — | (3,919 | ) | — | (3,919 | ) | |||||||||||||||||||||||||||||
Vesting of restricted stock units | 266 | — | — | — | — | |||||||||||||||||||||||||||||||
Net issuance of restricted stock awards | 272,941 | — | — | — | — | |||||||||||||||||||||||||||||||
Employee stock purchase plan | 63,649 | 1,700 | — | — | 1,700 | |||||||||||||||||||||||||||||||
Stock-based compensation expense | — | 17,003 | — | — | 17,003 | |||||||||||||||||||||||||||||||
Repurchase of company stock | (173,545 | ) | (5,630 | ) | — | — | (5,630 | ) | ||||||||||||||||||||||||||||
Taxes paid related to net share settlement of equity awards | (160,700 | ) | (5,183 | ) | — | — | (5,183 | ) | ||||||||||||||||||||||||||||
Exercise of stock options | 667,667 | 9,748 | — | — | 9,748 | |||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | (14,437 | ) | (14,437 | ) | |||||||||||||||||||||||||||||
Net loss | — | — | (22,935 | ) | — | (22,935 | ) | |||||||||||||||||||||||||||||
Balances, December 31, 2018 | 33,804,379 | $ | 334,215 | $ | 102,261 | $ | (38,032 | ) | $ | 398,444 | ||||||||||||||||||||||||||
Reclassification of stranded tax effects for ASU 2018-02 | 1,332 | (1,332 | ) | — | ||||||||||||||||||||||||||||||||
Vesting of restricted stock units | 42,130 | — | — | — | — | |||||||||||||||||||||||||||||||
Net issuance of restricted stock awards | 175,833 | — | — | — | — | |||||||||||||||||||||||||||||||
Employee stock purchase plan | 53,839 | 1,354 | — | — | 1,354 | |||||||||||||||||||||||||||||||
Stock-based compensation expense | — | 8,315 | — | — | 8,315 | |||||||||||||||||||||||||||||||
Taxes paid related to net share settlement of equity awards | (51,784 | ) | (1,689 | ) | — | — | (1,689 | ) | ||||||||||||||||||||||||||||
Exercise of stock options | 124,303 | 2,281 | — | — | 2,281 | |||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | 23,089 | 23,089 | |||||||||||||||||||||||||||||||
Net loss | — | — | (15,671 | ) | — | (15,671 | ) | |||||||||||||||||||||||||||||
Balances, December 31, 2019 | 34,148,700 | $ | 344,476 | $ | 87,922 | $ | (16,275 | ) | $ | 416,123 |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||
2017 | 2016 | 2015 | 2019 | 2018 | 2017 | |||||||||||||||||
Operating activities: | ||||||||||||||||||||||
Net income (loss) | $ | (20,293 | ) | $ | 42,594 | $ | 37,924 | |||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||||
Net loss | $ | (15,671 | ) | $ | (22,935 | ) | $ | (20,293 | ) | |||||||||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||||||||||||||
Provision for losses on accounts receivable | 10,017 | 1,123 | 1,496 | 1,584 | 6,909 | 10,017 | ||||||||||||||||
Excess tax benefit on the exercise of stock options | — | — | (7,104 | ) | ||||||||||||||||||
Depreciation and amortization | 30,098 | 16,879 | 15,987 | 30,722 | 33,863 | 30,098 | ||||||||||||||||
Gain on disposal of property and equipment | (21 | ) | (29 | ) | (5 | ) | ||||||||||||||||
(Gain) loss on disposal of property and equipment | 449 | 746 | (21 | ) | ||||||||||||||||||
Impairment of intangible assets | 1,674 | — | — | — | 8,192 | 1,674 | ||||||||||||||||
Impairment charge for sale of entity | 24,571 | — | — | |||||||||||||||||||
Goodwill impairment charge | — | 14,846 | — | |||||||||||||||||||
Warranty reserve | 5,370 | 2,934 | 10,729 | 2,886 | 2,168 | 5,370 | ||||||||||||||||
Stock-based compensation | 9,445 | 9,008 | 6,953 | 8,352 | 17,051 | 9,445 | ||||||||||||||||
Deferred taxes | (5,364 | ) | (13,714 | ) | 4,032 | |||||||||||||||||
Changes in operating assets and liabilities, net of assets and liabilities acquired in acquisitions: | ||||||||||||||||||||||
Accounts receivable | (30,473 | ) | 19,723 | (15,272 | ) | 9,817 | (5,199 | ) | (30,473 | ) | ||||||||||||
Inventories | 7,581 | (7,668 | ) | (12,232 | ) | 7,185 | (7,443 | ) | 7,581 | |||||||||||||
Other assets | 5,492 | (11,387 | ) | 858 | (2,486 | ) | (5,118 | ) | 5,492 | |||||||||||||
Accounts payable | (1,385 | ) | (4,965 | ) | 3,270 | (1,367 | ) | 4,105 | (1,385 | ) | ||||||||||||
Accrued liabilities | 5,421 | (6,967 | ) | (6,177 | ) | (4,010 | ) | (2,527 | ) | 5,421 | ||||||||||||
Deferred revenue | (7,232 | ) | 13,879 | (1,118 | ) | 3,392 | 2,076 | (7,232 | ) | |||||||||||||
Deferred taxes | 4,032 | (2,437 | ) | 1,543 | ||||||||||||||||||
Net cash provided by operating activities | 19,726 | 72,687 | 36,852 | 60,060 | 33,020 | 19,726 | ||||||||||||||||
Investing activities: | ||||||||||||||||||||||
Acquisition of businesses, net of cash acquired | (190,888 | ) | (15,849 | ) | (14,284 | ) | — | 151 | (190,888 | ) | ||||||||||||
Acquisition of property and equipment | (4,066 | ) | (3,186 | ) | (4,068 | ) | (5,326 | ) | (7,875 | ) | (4,066 | ) | ||||||||||
Acquisition of intangible assets | — | (210 | ) | (1,126 | ) | (13 | ) | (665 | ) | — | ||||||||||||
Purchases of short-term investments | — | (34,019 | ) | — | ||||||||||||||||||
Sales of short-term investments | 34,019 | — | — | — | — | 34,019 | ||||||||||||||||
Net cash used in investing activities | (160,935 | ) | (53,264 | ) | (19,478 | ) | (5,339 | ) | (8,389 | ) | (160,935 | ) | ||||||||||
Financing activities: | ||||||||||||||||||||||
Proceeds from stock option exercises and ESPP | 3,466 | 3,630 | 10,258 | 3,635 | 11,448 | 3,466 | ||||||||||||||||
Excess tax benefit on the exercise of stock options | — | — | 7,104 | |||||||||||||||||||
Principal payments of financing lease liability | (478 | ) | — | — | ||||||||||||||||||
Repurchase of company stock | (2,268 | ) | (19,289 | ) | (11,525 | ) | — | (5,630 | ) | (2,268 | ) | |||||||||||
Taxes paid related to net share settlement of equity awards | (7,052 | ) | (4,107 | ) | (4,341 | ) | (1,689 | ) | (5,183 | ) | (7,052 | ) | ||||||||||
Proceeds from short-term borrowings | — | 16,000 | — | |||||||||||||||||||
Proceeds from long-term borrowings | 60,000 | 140,000 | — | — | — | 60,000 | ||||||||||||||||
Deferred debt issuance costs | (354 | ) | (533 | ) | — | — | — | (354 | ) | |||||||||||||
Contingent consideration earn-out | (2,966 | ) | (1,284 | ) | (664 | ) | — | (147 | ) | (2,966 | ) | |||||||||||
Payments on borrowings | (45,000 | ) | (16,000 | ) | — | (50,000 | ) | (50,000 | ) | (45,000 | ) | |||||||||||
Net cash provided by financing activities | 5,826 | 118,417 | 832 | |||||||||||||||||||
Net cash provided by (used in) financing activities | (48,532 | ) | (49,512 | ) | 5,826 | |||||||||||||||||
Exchange rate effect on cash and cash equivalents | 10,782 | (6,758 | ) | (2,295 | ) | 735 | (7,696 | ) | 10,782 | |||||||||||||
Net increase (decrease) in cash and cash equivalents | (124,601 | ) | 131,082 | 15,911 | 6,924 | (32,577 | ) | (124,601 | ) | |||||||||||||
Cash and cash equivalents, beginning of year | 213,551 | 82,469 | 66,558 | 56,373 | 88,950 | 213,551 | ||||||||||||||||
Cash and cash equivalents, end of year | $ | 88,950 | $ | 213,551 | $ | 82,469 | $ | 63,297 | $ | 56,373 | $ | 88,950 | ||||||||||
Supplemental disclosure of cash flow information: | �� | |||||||||||||||||||||
Cash paid for interest | $ | 4,464 | $ | 41 | $ | — | $ | 4,580 | $ | 6,169 | $ | 4,464 | ||||||||||
Cash paid for income taxes | $ | 5,740 | $ | 16,344 | $ | 10,164 | $ | 6,445 | $ | 9,247 | $ | 5,740 | ||||||||||
Non-cash investing activities: | ||||||||||||||||||||||
Property and equipment included in accounts payable | $ | 148 | $ | 134 | $ | 289 | $ | 69 | $ | 167 | $ | 148 | ||||||||||
Inventory transferred to property and equipment | $ | 1,006 | $ | 1,303 | $ | 1,056 | $ | 300 | $ | 1,211 | $ | 1,006 |
Cash and cash equivalents | $ | 5,604 | |
Accounts receivable | 26,851 | ||
Inventories | 22,182 | ||
Property and equipment | 2,256 | ||
Intangible assets | 90,913 | ||
Goodwill | 39,355 | ||
Other assets | 1,748 | ||
Accounts payable | (7,655 | ) | |
Accrued liabilities | (16,069 | ) | |
Deferred revenue | (745 | ) | |
Deferred income tax | (15,193 | ) | |
Total purchase price | $ | 149,247 |
Year Ended December 31, | |||||||
2017 | 2016 | ||||||
Revenue | $ | 500,970 | $ | 491,994 | |||
Net income (loss) | $ | (15,965 | ) | $ | 17,385 | ||
Earnings (loss) per share: | |||||||
Basic | $ | (0.49 | ) | $ | 0.54 | ||
Diluted | $ | (0.49 | ) | $ | 0.53 | ||
Weighted average shares used in the calculation of earnings per share: | |||||||
Basic | 32,564 | 32,460 | |||||
Diluted | 32,564 | 33,056 |
Unbilled AR, December 31, 2018 | $ | 3,012 | |
Additions | 354 | ||
Transferred to Trade Receivable | (699 | ) | |
Unbilled AR, December 31, 2019 | $ | 2,667 |
Deferred Revenue, December 31, 2018 | $ | 21,410 | |
Additions | 19,465 | ||
Revenue Recognized | (16,067 | ) | |
Deferred Revenue, December 31, 2019 | $ | 24,808 |
December 31, | |||||||
2019 | 2018 | ||||||
Raw materials and subassemblies | $ | 37,259 | $ | 31,459 | |||
Work in process | 1,780 | 2,424 | |||||
Finished goods | 50,521 | 63,932 | |||||
Total Inventories | 89,560 | 97,815 | |||||
Less: Non-current Inventories | (18,192 | ) | (18,079 | ) | |||
Inventories | $ | 71,368 | $ | 79,736 |
December 31, 2017 | December 31, 2016 | ||||
Cash and cash equivalents: | |||||
Cash | 88,950 | 213,551 | |||
Short-term investments: | |||||
U.S. investment grade bonds | — | 24,477 | |||
Developed investment grade bonds | — | 9,542 | |||
Total short-term investments | — | 34,019 | |||
Total cash, cash equivalents and short-term investments | 88,950 | 247,570 |
December 31, 2017 | December 31, 2016 | ||||||||||||||||||||||||||||||
Aggregated Cost Basis | Gross Unrealized Gains | Gross Unrealized Losses | Aggregated Fair Value | Aggregated Cost Basis | Gross Unrealized Gains | Gross Unrealized Losses | Aggregated Fair Value | ||||||||||||||||||||||||
U.S. investment grade bonds | — | — | — | — | 24,531 | — | (54 | ) | 24,477 | ||||||||||||||||||||||
Developed investment grade bonds | — | — | — | — | 9,567 | — | (25 | ) | 9,542 | ||||||||||||||||||||||
Total short-term investments | $ | — | $ | — | $ | — | $ | — | $ | 34,098 | $ | — | $ | (79 | ) | $ | 34,019 |
December 31, 2017 | December 31, 2016 | ||||||
Investments | Investments | ||||||
Due in one year or less | $ | — | $ | 21,655 | |||
Due after one year through five years | — | 12,364 | |||||
Total short-term investment | $ | — | $ | 34,019 |
December 31, | |||||||
2017 | 2016 | ||||||
Raw materials and subassemblies | $ | 44,699 | $ | 28,245 | |||
Work in process | 3,788 | 1,507 | |||||
Finished goods | 43,488 | 34,908 | |||||
Total Inventories | 91,975 | 64,660 | |||||
Less: Non-current Inventories | (20,446 | ) | (15,073 | ) | |||
Inventories | $ | 71,529 | $ | 49,587 |
December 31, | |||||||
2019 | 2018 | ||||||
Land | $ | 1,719 | $ | 1,828 | |||
Buildings | 6,943 | 7,036 | |||||
Leasehold improvements | 8,664 | 4,649 | |||||
Finance lease right-of-use assets | 2,377 | — | |||||
Office furniture and equipment | 22,819 | 23,487 | |||||
Computer software and hardware | 12,610 | 12,803 | |||||
Demonstration and loaned equipment | 11,621 | 12,843 | |||||
66,753 | 62,646 | ||||||
Accumulated depreciation | (42,051 | ) | (39,733 | ) | |||
Total | $ | 24,702 | $ | 22,913 |
December 31, | |||||||
2017 | 2016 | ||||||
Land | $ | 2,815 | $ | 2,856 | |||
Buildings | 5,096 | 5,219 | |||||
Leasehold improvements | 3,295 | 2,386 | |||||
Office furniture and equipment | 25,612 | 18,398 | |||||
Computer software and hardware | 9,760 | 9,100 | |||||
Demonstration and loaned equipment | 11,932 | 11,393 | |||||
58,510 | 49,352 | ||||||
Accumulated depreciation | (36,439 | ) | (32,019 | ) | |||
Total | $ | 22,071 | $ | 17,333 |
December 31, 2019 | December 31, 2018 | ||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Impairment | Accumulated Amortization | Net Book Value | Gross Carrying Amount | Accumulated Impairment | Accumulated Amortization | Net Book Value | ||||||||||||||||||||||
Technology | $ | 108,400 | (6,035 | ) | $ | (55,408 | ) | $ | 46,957 | $ | 111,198 | (6,768 | ) | $ | (50,046 | ) | $ | 54,384 | |||||||||||
Customer related | 90,351 | (50 | ) | (40,527 | ) | 49,774 | 99,440 | (1,961 | ) | (38,574 | ) | 58,905 | |||||||||||||||||
Trade names | 45,874 | (3,237 | ) | (25,355 | ) | 17,282 | 47,217 | (4,397 | ) | (19,250 | ) | 23,570 | |||||||||||||||||
Internally developed software | 13,281 | — | (12,606 | ) | 675 | 16,264 | — | (14,164 | ) | 2,100 | |||||||||||||||||||
Patents | 2,692 | (133 | ) | (2,559 | ) | — | 2,718 | (133 | ) | (2,524 | ) | 61 | |||||||||||||||||
Service Agreements | 1,190 | — | (1,079 | ) | 111 | 1,190 | — | (757 | ) | 433 | |||||||||||||||||||
Total Definite-lived intangible assets | 261,788 | (9,455 | ) | (137,534 | ) | 114,799 | 278,027 | (13,259 | ) | (125,315 | ) | 139,453 |
December 31, 2017 | December 31, 2016 | ||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Impairment | Accumulated Amortization | Net Book Value | Gross Carrying Amount | Accumulated Impairment | Accumulated Amortization | Net Book Value | ||||||||||||||||||||||
Technology | $ | 101,045 | (1,058 | ) | $ | (42,048 | ) | $ | 57,939 | $ | 62,563 | — | $ | (34,683 | ) | $ | 27,880 | ||||||||||||
Customer related | 108,074 | (50 | ) | (28,972 | ) | 79,052 | 38,087 | — | (17,610 | ) | 20,477 | ||||||||||||||||||
Trade names | 49,313 | (3,916 | ) | (13,273 | ) | 32,124 | 32,106 | (3,290 | ) | (7,135 | ) | 21,681 | |||||||||||||||||
Internally developed software | 15,610 | — | (12,293 | ) | 3,317 | 16,978 | — | (10,220 | ) | 6,758 | |||||||||||||||||||
Patents | 2,778 | (133 | ) | (2,495 | ) | 150 | 2,620 | — | (2,251 | ) | 369 | ||||||||||||||||||
Total Definite-lived intangible assets | 276,820 | (5,157 | ) | (99,081 | ) | 172,582 | 152,354 | (3,290 | ) | (71,899 | ) | 77,165 |
Years Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Technology | $ | 6,906 | $ | 14,100 | $ | 7,705 | |||||
Customer related | 8,662 | 12,244 | 10,945 | ||||||||
Trade names | 6,111 | 6,736 | 6,479 | ||||||||
Internally developed software | 1,438 | 2,123 | 2,117 | ||||||||
Patents | 60 | 84 | 244 | ||||||||
Service Agreements | 322 | 757 | — | ||||||||
Total amortization | $ | 23,499 | $ | 36,044 | $ | 27,490 |
Years Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Technology | $ | 7,705 | $ | 3,407 | $ | 3,916 | |||||
Customer related | 10,945 | 3,452 | 2,938 | ||||||||
Trade names | 6,479 | 4,115 | 3,159 | ||||||||
Internally developed software | 2,117 | 2,069 | 1,620 | ||||||||
Patents | 244 | 112 | 112 | ||||||||
Total amortization | $ | 27,490 | $ | 13,155 | $ | 11,745 |
2020 | $ | 21,616 | |
2021 | 20,724 | ||
2022 | 17,329 | ||
2023 | 16,375 | ||
2024 | 14,483 | ||
Thereafter | 24,272 | ||
Total expected amortization expense | $ | 114,799 |
2018 | $ | 27,014 | |
2019 | 25,836 | ||
2020 | 23,634 | ||
2021 | 22,210 | ||
2022 | 18,564 | ||
Thereafter | 55,324 | ||
Total expected amortization expense | $ | 172,582 |
As of December 31, 2015 | $ | 107,466 | |
Acquisitions/Purchase Accounting Adjustments | 6,705 | ||
Foreign currency translation | (1,059 | ) | |
As of December 31, 2016 | $ | 113,112 | |
Acquisitions/Purchase Accounting Adjustments | 54,746 | ||
Foreign currency translation | 5,140 | ||
As of December 31, 2017 | $ | 172,998 |
As of December 31, 2017 | $ | 172,998 | |
Purchase Accounting Adjustments | (7,324 | ) | |
Impairment charge | (14,846 | ) | |
Foreign currency translation | (3,184 | ) | |
As of December 31, 2018 | $ | 147,644 | |
Foreign currency translation | (1,277 | ) | |
As of December 31, 2019 | $ | 146,367 |
Year Ended December 31, | |||
2019 | |||
Operating lease cost | $ | 6,823 | |
Finance lease cost: | |||
Amortization of right-of-use assets (principal payments) | 466 | ||
Interest on lease liabilities | 58 | ||
Short-term lease cost | 51 | ||
Variable lease cost | 2,836 | ||
Sublease income | (179 | ) | |
Total lease cost | $ | 10,055 |
Year Ended December 31, | |||
2019 | |||
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ | 13,612 | |
Operating cash flows from finance leases | 42 | ||
Financing cash flows from finance leases | 478 | ||
Right-of-use assets obtained in exchange for lease obligations: | |||
Operating leases | 2,697 | ||
Finance leases | 300 |
December 31, 2019 | |||
Operating Leases | |||
Operating lease right-of-use assets | $ | 15,046 | |
Current portion of operating lease liabilities | $ | 5,871 | |
Operating lease liabilities | 12,051 | ||
Total operating lease liabilities | $ | 17,922 | |
Finance Leases | |||
Property and equipment, gross | $ | 2,377 | |
Accumulated amortization | (1,418 | ) | |
Property and equipment, net | $ | 959 | |
Accrued liabilities | $ | 390 | |
Other liabilities | 599 | ||
Total finance lease liabilities | $ | 989 | |
Weighted Average Remaining Lease Term | |||
Operating leases | 3.75 years | ||
Finance leases | 2.92 years | ||
Weighted Average Discount Rate | |||
Operating leases | 5.3 | % | |
Finance leases | 5.1 | % |
December 31, | |||||||
2017 | 2016 | ||||||
Compensation and related benefits | $ | 22,816 | $ | 16,064 | |||
Accrued federal, state, and local taxes | 8,155 | 4,160 | |||||
Warranty reserve | 10,995 | 10,670 | |||||
Accrued amounts due to customers | 2,424 | 1,625 | |||||
Accrued professional fees | 2,280 | 1,191 | |||||
Accrued selling expenses | 1,704 | 292 | |||||
Contingent consideration | 147 | 3,043 | |||||
Accrued travel | 338 | — | |||||
Deferred rent | 161 | 132 | |||||
Other | 2,718 | 718 | |||||
Total | $ | 51,738 | $ | 37,895 |
Year ending December 31, | Operating Leases | Finance Leases | |||||
2020 | $ | 6,788 | $ | 401 | |||
2021 | 5,302 | 346 | |||||
2022 | 3,657 | 176 | |||||
2023 | 2,498 | 97 | |||||
2024 | 1,277 | 5 | |||||
Thereafter | 842 | — | |||||
Total lease payments | 20,364 | 1,025 | |||||
Less imputed interest | (2,442 | ) | (36 | ) | |||
Total | $ | 17,922 | $ | 989 |
December 31, | |||||||
2019 | 2018 | ||||||
Compensation and related benefits | $ | 26,991 | $ | 24,891 | |||
Warranty reserve | 6,404 | 9,391 | |||||
Accrued federal, state, and local taxes | 11,156 | 8,285 | |||||
Accrued amounts due to customers | 3,008 | 5,507 | |||||
Accrued professional fees | 2,083 | 1,820 | |||||
Accrued selling expenses | 507 | 246 | |||||
Self-funded insurance expense | 950 | — | |||||
Accrued travel | 224 | 201 | |||||
Deferred rent | — | 205 | |||||
Other | 3,128 | 2,022 | |||||
Total | $ | 54,451 | $ | 52,568 |
December 31, | |||||||
2019 | 2018 | ||||||
Long-term taxes payable | $ | 12,330 | $ | 15,425 | |||
Non-current deferred revenue | 4,563 | 4,338 | |||||
Finance lease liabilities | 599 | — | |||||
Other | 124 | 82 | |||||
Total | $ | 17,616 | $ | 19,845 |
December 31, | |||||||
2017 | 2016 | ||||||
Contingent tax obligations | $ | 17,934 | $ | 6,125 | |||
Non-current deferred revenue | 4,039 | 1,885 | |||||
Other | 22 | 3 | |||||
Total | $ | 21,995 | $ | 8,013 |
December 31, | |||||||
2019 | 2018 | ||||||
Revolving credit facility | $ | 55,000 | $ | 105,000 | |||
Debt issuance costs | (335 | ) | (526 | ) | |||
Less: current portion of long-term debt | 35,000 | 35,000 | |||||
Total long-term debt | $ | 19,665 | $ | 69,474 |
December 31, | |||||||
2017 | 2016 | ||||||
Revolving credit facility | $ | 155,000 | $ | 140,000 | |||
Debt issuance costs | (717 | ) | — | ||||
Less: current portion of long-term debt | — | — | |||||
Total long-term debt | $ | 154,283 | $ | 140,000 |
December 31, | |||||||
2019 | 2018 | ||||||
2019 | $ | — | $ | — | |||
2020 | — | — | |||||
2021 | 55,000 | 105,000 | |||||
Thereafter | — | — | |||||
Total | $ | 55,000 | $ | 105,000 |
December 31, | |||||||
2017 | 2016 | ||||||
2018 | $ | — | $ | — | |||
2019 | — | — | |||||
2020 | — | — | |||||
Thereafter | 154,283 | 140,000 | |||||
Total | $ | 154,283 | $ | 140,000 |
Hedged Item | Current Notional Amount | Designation Date | Effective Date | Termination Date | Fixed Interest Rate | Floating Rate | Estimated Fair Value | ||||
1-month USD LIBOR loan | $ | 40,000 | May 31, 2018 | June 1, 2018 | September 23, 2021 | 2.611% | 1-month USD LIBOR | $ | 313 | ||
Total interest rate derivatives designated as cash flow hedge | $ | 40,000 | $ | 313 |
Balance at Beginning of Period | Assumed Through Acquisitions | Additions Charged to Expense | Reductions | Balance at End of Period | |||||||||||||||
December 31, 2017 | $ | 10,670 | $ | 1,159 | $ | 5,370 | $ | (6,204 | ) | $ | 10,995 | ||||||||
December 31, 2016 | $ | 10,386 | $ | 222 | $ | 2,711 | $ | (2,649 | ) | $ | 10,670 | ||||||||
December 31, 2015 | $ | 2,753 | $ | — | $ | 10,729 | $ | (3,096 | ) | $ | 10,386 |
December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Net loss | $ | (15,671 | ) | $ | (22,935 | ) | $ | (20,293 | ) | ||
Weighted average common shares | 33,696 | 33,111 | 32,564 | ||||||||
Dilutive effect of stock based awards | — | — | — | ||||||||
Diluted Shares | 33,696 | 33,111 | 32,564 | ||||||||
Basic loss per share | $ | (0.47 | ) | $ | (0.69 | ) | $ | (0.62 | ) | ||
Diluted loss per share | $ | (0.47 | ) | $ | (0.69 | ) | $ | (0.62 | ) | ||
Shares excluded from calculation of diluted EPS | 104 | 343 | 565 |
December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Net income (loss) | $ | (20,293 | ) | $ | 42,594 | $ | 37,924 | ||||
Weighted average common shares | 32,564 | 32,460 | 32,348 | ||||||||
Dilutive effect of stock based awards | — | 596 | 893 | ||||||||
Diluted Shares | 32,564 | 33,056 | 33,241 | ||||||||
Basic earnings per share | $ | (0.62 | ) | $ | 1.31 | $ | 1.17 | ||||
Diluted earnings per share | $ | (0.62 | ) | $ | 1.29 | $ | 1.14 | ||||
Shares excluded from calculation of diluted EPS | 565 | 2 | — |
December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Cost of revenue | $ | 264 | $ | 218 | $ | 232 | |||||
Marketing and selling | 800 | 801 | 540 | ||||||||
Research and development | 1,024 | 1,039 | 1,332 | ||||||||
General and administrative | 6,227 | 14,945 | 7,341 | ||||||||
Total expense | $ | 8,315 | $ | 17,003 | $ | 9,445 |
December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Cost of revenue | $ | 232 | $ | 219 | $ | 156 | |||||
Marketing and selling | 540 | 821 | 808 | ||||||||
Research and development | 1,332 | 1,515 | 1,264 | ||||||||
General and administrative | 7,341 | 6,453 | 4,725 | ||||||||
Total expense | 9,445 | 9,008 | 6,953 |
Number of Shares | Weighted Average Exercise Price | |||||
Outstanding, December 31, 2018 (127,453 shares exercisable at a weighted average exercise price of $18.22 per share) | 201,542 | $ | 24.48 | |||
Granted | — | $ | — | |||
Exercised | (124,303 | ) | $ | 18.35 | ||
Forfeited | — | $ | — | |||
Expired | (3,150 | ) | $ | 13.35 | ||
Outstanding, December 31, 2019 (18,531 shares exercisable at a weighted average exercise price of $35.25 per share) | 74,089 | $ | 35.25 |
Number of Shares | Weighted Average Exercise Price | |||||
Outstanding, December 31, 2016 (816,691 shares exercisable at a weighted average exercise price of $14.54 per share) | 933,096 | $ | 15.02 | |||
Granted | — | $ | — | |||
Exercised | (134,102 | ) | $ | 14.06 | ||
Forfeited | (1,317 | ) | $ | 13.83 | ||
Expired | (2,592 | ) | $ | 16.31 | ||
Outstanding, December 31, 2017 (790,573 shares exercisable at a weighted average exercise price of $15.14 per share) | 795,085 | $ | 15.18 |
December 31, | |||
2018 | |||
Weighted-average fair value of options granted | $ | 11.03 | |
Expected life in years | 4.0 | ||
Risk-free interest rate | 2.7 | % | |
Expected volatility | 35 | % | |
Dividend yield | NaN |
Shares | Weighted Average Grant Date Fair Value | |||||
Unvested at December 31, 2018 | 293,588 | $ | 37.04 | |||
Granted | 197,333 | $ | 31.53 | |||
Vested | (129,659 | ) | $ | 36.46 | ||
Forfeited | (21,500 | ) | $ | 35.76 | ||
Unvested at December 31, 2019 | 339,762 | $ | 34.14 |
Shares | Weighted Average Grant Date Fair Value | |||||
Unvested at December 31, 2016 | 506,389 | $ | 34.82 | |||
Granted | 265,449 | $ | 34.94 | |||
Vested | (391,947 | ) | $ | 32.41 | ||
Forfeited | (16,083 | ) | $ | 35.87 | ||
Unvested at December 31, 2017 | 363,808 | $ | 37.46 |
Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | |||||||||
Outstanding at December 31, 2016 | 29,903 | $ | 34.39 | |||||||||
Outstanding at December 31, 2018 | 112,805 | $ | 36.80 | |||||||||
Awarded | 55,176 | $ | 35.16 | 118,740 | $ | 38.62 | ||||||
Released | (35,929 | ) | $ | 33.65 | (42,130 | ) | $ | 34.11 | ||||
Forfeited | (25,006 | ) | $ | 34.47 | (16,319 | ) | $ | 37.60 | ||||
Outstanding at December 31, 2017 | 24,144 | $ | 37.17 | |||||||||
Outstanding at December 31, 2019 | 173,096 | $ | 38.62 |
Personnel Related | Facility Related | Total | ||||||||
Balance as of December 31, 2014 | $ | 368 | — | $ | 368 | |||||
Additions | 1,905 | 156 | 2,061 | |||||||
Reversals | (124 | ) | — | (124 | ) | |||||
Payments | (473 | ) | (156 | ) | (629 | ) | ||||
Balance as of December 31, 2015 | 1,676 | — | 1,676 | |||||||
Additions | 1,093 | 725 | 1,818 | |||||||
Reversals | (436 | ) | — | (436 | ) | |||||
Payments | (1,990 | ) | (573 | ) | (2,563 | ) | ||||
Balance as of December 31, 2016 | 343 | 152 | 495 | |||||||
Additions | 431 | — | 431 | |||||||
Reversals | (182 | ) | — | (182 | ) | |||||
Payments | (631 | ) | (93 | ) | (724 | ) | ||||
Balance as of December 31, 2017 | $ | (39 | ) | 59 | $ | 20 |
Years Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Interest income | $ | 250 | $ | 334 | $ | 425 | |||||
Interest expense | (4,941 | ) | (6,794 | ) | (5,081 | ) | |||||
Foreign currency gain (loss) | (765 | ) | (800 | ) | 1,013 | ||||||
Other | (135 | ) | (438 | ) | 76 | ||||||
Total other expense, net | $ | (5,591 | ) | $ | (7,698 | ) | $ | (3,567 | ) |
Years Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Interest income | $ | 425 | $ | 315 | $ | 27 | |||||
Interest expense | (5,081 | ) | (430 | ) | (352 | ) | |||||
Foreign currency gain (loss) | 1,013 | (359 | ) | (1,415 | ) | ||||||
Other | 76 | 117 | 676 | ||||||||
Total other income (expense), net | $ | (3,567 | ) | $ | (357 | ) | $ | (1,064 | ) |
Years Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
U.S. | $ | (22,851 | ) | $ | (54,370 | ) | $ | (18,059 | ) | ||
Foreign | 1,594 | 22,110 | 23,209 | ||||||||
Income (loss) before provision for income tax | $ | (21,257 | ) | $ | (32,260 | ) | $ | 5,150 |
Years Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
U.S. | $ | (18,059 | ) | $ | 68 | $ | 20,507 | ||||
Foreign | 23,209 | 54,835 | 31,902 | ||||||||
Income before provision for income tax | $ | 5,150 | $ | 54,903 | $ | 52,409 |
Years Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Current | |||||||||||
U.S. Federal | $ | (948 | ) | $ | (1,872 | ) | $ | 10,110 | |||
U.S. State and local | 561 | (59 | ) | 1,079 | |||||||
Non-U.S. | 8,386 | 5,732 | 12,764 | ||||||||
Total current tax expense | 7,999 | 3,801 | 23,953 | ||||||||
Deferred | |||||||||||
U.S. Federal | (7,491 | ) | (8,248 | ) | 6,345 | ||||||
U.S. State and local | (816 | ) | (1,751 | ) | (1,333 | ) | |||||
Non-U.S. | (5,278 | ) | (3,127 | ) | (3,522 | ) | |||||
Total deferred tax expense (benefit) | (13,585 | ) | (13,126 | ) | 1,490 | ||||||
Total income tax expense (benefit) | $ | (5,586 | ) | $ | (9,325 | ) | $ | 25,443 |
Years Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Current | |||||||||||
U.S. Federal | $ | 10,110 | $ | (1,388 | ) | $ | 13,497 | ||||
U.S. State and local | 1,079 | 692 | 1,984 | ||||||||
Non-U.S. | 12,764 | 15,069 | 2,239 | ||||||||
Total current tax expense | 23,953 | 14,373 | 17,720 | ||||||||
Deferred | |||||||||||
U.S. Federal | 6,345 | (1,534 | ) | (3,410 | ) | ||||||
U.S. State and local | (1,333 | ) | (378 | ) | (385 | ) | |||||
Non-U.S. | (3,522 | ) | (152 | ) | 560 | ||||||
Total deferred tax benefit | 1,490 | (2,064 | ) | (3,235 | ) | ||||||
Total income tax expense | $ | 25,443 | $ | 12,309 | $ | 14,485 |
December 31, | |||||||
2017 | 2016 | ||||||
Deferred tax assets: | |||||||
Net operating loss carryforwards | $ | 3,958 | $ | 6,557 | |||
Credit carryforwards | 4,466 | 2,512 | |||||
Accruals deductible in different periods | 11,969 | 16,157 | |||||
Employee benefits | 1,085 | 2,389 | |||||
Total deferred tax assets | 21,478 | 27,615 | |||||
Valuation allowance | (5,862 | ) | (3,706 | ) | |||
Total net deferred tax assets | $ | 15,616 | $ | 23,909 | |||
Deferred tax liabilities: | |||||||
Basis difference in fixed and intangible assets | (23,934 | ) | (12,678 | ) | |||
Foreign earnings to be repatriated | (380 | ) | — | ||||
Total deferred tax liabilities | (24,314 | ) | (12,678 | ) | |||
Total net deferred tax assets | $ | (8,698 | ) | $ | 11,231 |
December 31, | |||||||
2019 | 2018 | ||||||
Deferred tax assets: | |||||||
Net operating loss carryforwards | $ | 3,035 | $ | 3,192 | |||
Credit carryforwards | 2,415 | 2,882 | |||||
Accruals deductible in different periods | 23,672 | 15,197 | |||||
Employee benefits | 1,554 | 1,262 | |||||
Operating leases | 4,643 | — | |||||
Total deferred tax assets | 35,319 | 22,533 | |||||
Valuation allowance | (606 | ) | (637 | ) | |||
Total net deferred tax assets | $ | 34,713 | $ | 21,896 | |||
Deferred tax liabilities: | |||||||
Basis difference in fixed and intangible assets | (13,850 | ) | (15,687 | ) | |||
Operating leases | (3,959 | ) | — | ||||
Foreign earnings to be repatriated | (800 | ) | (500 | ) | |||
Total deferred tax liabilities | (18,609 | ) | (16,187 | ) | |||
Total net deferred tax assets | $ | 16,104 | $ | 5,709 |
Years Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Federal statutory tax expense | $ | (4,464 | ) | $ | (6,775 | ) | $ | 1,802 | |||
State tax expense | (300 | ) | (1,160 | ) | (318 | ) | |||||
Foreign taxes at rates less than U.S. rates | (2,205 | ) | (1,071 | ) | (3,101 | ) | |||||
Deferred charges on sales of U.S. intellectual property | — | — | 980 | ||||||||
Equity compensation | 824 | 519 | 606 | ||||||||
Tax credits | (1,428 | ) | (2,021 | ) | (1,498 | ) | |||||
Uncertain tax position | 2,910 | 1,311 | 2,048 | ||||||||
Lapse of statute | (3,961 | ) | (1,214 | ) | (1,521 | ) | |||||
Change of valuation allowance on foreign tax credit | — | — | 314 | ||||||||
Earnout adjustment | — | — | (190 | ) | |||||||
Repatriation tax net of foreign tax credits | 172 | — | 16,564 | ||||||||
Net deferred tax asset re-measurement | — | — | 3,883 | ||||||||
Tax audits | — | 658 | 726 | ||||||||
Withholding taxes | 1,107 | 1,185 | 2,880 | ||||||||
Global intangible low-taxed income net of foreign tax credits | 1,601 | 2,326 | — | ||||||||
Return to provision | 560 | (1,417 | ) | 711 | |||||||
AMT on acquisition | — | — | 621 | ||||||||
SAB 118 adjustments | — | (2,676 | ) | — | |||||||
Other | (402 | ) | 1,010 | 936 | |||||||
Total expense (benefit) | $ | (5,586 | ) | $ | (9,325 | ) | $ | 25,443 |
Years Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Federal statutory tax expense | $ | 1,802 | $ | 19,216 | $ | 18,343 | |||||
State tax expense | (318 | ) | 188 | 1,249 | |||||||
Foreign taxes at rates less than U.S. rates | (3,101 | ) | (6,838 | ) | (1,760 | ) | |||||
Deferred charges on sales of U.S. intellectual property | 980 | 980 | (5,878 | ) | |||||||
Equity compensation | 606 | (530 | ) | 204 | |||||||
Tax credits | (1,498 | ) | (911 | ) | (935 | ) | |||||
Uncertain tax position | 2,048 | 485 | 3,897 | ||||||||
Lapse of statute | (1,521 | ) | (495 | ) | (784 | ) | |||||
Change of valuation allowance on foreign tax credit | 314 | — | — | ||||||||
Earnout adjustment | (190 | ) | (1,184 | ) | — | ||||||
Repatriation tax net of foreign tax credits | 16,564 | — | — | ||||||||
Net deferred tax asset re-measurement | 3,883 | — | — | ||||||||
Tax audits | 726 | 543 | — | ||||||||
Withholding taxes | 2,880 | — | — | ||||||||
Return to provision | 711 | — | — | ||||||||
AMT on acquisition | 621 | — | — | ||||||||
Other | 936 | 855 | 149 | ||||||||
Total expense | $ | 25,443 | $ | 12,309 | $ | 14,485 |
Balance at January 1, 2017 | $ | 5,898 | |
Increases for tax positions related to prior years | 747 | ||
Increases for tax positions related to the current year | 1,712 | ||
Lapse of statutes of limitations | (1,393 | ) | |
Foreign exchange difference | 53 | ||
Balance at January 1, 2018 | $ | 7,017 | |
Increases for tax positions related to prior years | 526 | ||
Increases for tax positions related to the current year | 699 | ||
Lapse of statutes of limitations | (965 | ) | |
Foreign exchange difference | (50 | ) | |
Balance at January 1, 2019 | $ | 7,227 | |
Decreases for tax positions related to prior years | (48 | ) | |
Increases for tax positions related to the current year | 495 | ||
Lapse of statutes of limitations | (3,763 | ) | |
Foreign exchange difference | 6 | ||
Balance at December 31, 2019 | $ | 3,917 |
Balance at January 1, 2015 | $ | 3,395 | |
Increases for tax positions related to prior years | 281 | ||
Increases for tax positions related to the current year | 3,302 | ||
Lapse of statutes of limitations | (664 | ) | |
Balance at January 1, 2016 | $ | 6,314 | |
Increases for tax positions related to prior years | 174 | ||
Increases for tax positions related to the current year | 70 | ||
Lapse of statutes of limitations | (475 | ) | |
Foreign exchange difference | (185 | ) | |
Balance at January 1, 2017 | $ | 5,898 | |
Increases for tax positions related to prior years | 747 | ||
Increases for tax positions related to the current year | 1,712 | ||
Lapse of statutes of limitations | (1,393 | ) | |
Foreign exchange difference | 53 | ||
Balance at December 31, 2017 | $ | 7,017 |
Years Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Consolidated Revenue: | |||||||||||
United States | $ | 292,400 | $ | 300,860 | $ | 270,860 | |||||
Foreign countries | 202,775 | 230,031 | 230,110 | ||||||||
$ | 495,175 | $ | 530,891 | $ | 500,970 | ||||||
Revenue by End Market: | |||||||||||
Neuro | |||||||||||
Devices and Systems | $ | 220,306 | $ | 200,762 | $ | 171,315 | |||||
Supplies | 66,059 | 67,025 | 59,955 | ||||||||
Services | 871 | 12,000 | 11,886 | ||||||||
Total Neuro Revenue | $ | 287,236 | $ | 279,787 | $ | 243,156 | |||||
Newborn Care | |||||||||||
Devices and Systems | $ | 53,465 | $ | 72,807 | $ | 89,027 | |||||
Supplies | 38,264 | 40,669 | 43,928 | ||||||||
Services | 19,183 | 20,396 | 22,325 | ||||||||
Total Newborn Care Revenue | $ | 110,912 | $ | 133,872 | $ | 155,280 | |||||
Hearing & Balance | |||||||||||
Devices and Systems | $ | 92,050 | $ | 110,597 | $ | 75,466 | |||||
Supplies | 4,977 | 6,635 | 27,068 | ||||||||
Services | — | — | — | ||||||||
Total Hearing & Balance Revenue | $ | 97,027 | $ | 117,232 | $ | 102,534 | |||||
Total Revenue | $ | 495,175 | $ | 530,891 | $ | 500,970 |
Years Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Consolidated Revenue: | |||||||||||
United States | $ | 270,860 | $ | 250,694 | $ | 242,050 | |||||
Foreign countries | 230,110 | 131,198 | 133,815 | ||||||||
$ | 500,970 | $ | 381,892 | $ | 375,865 | ||||||
Revenue by End Market: | |||||||||||
Neuro | |||||||||||
Devices and Systems | $ | 171,315 | $ | 168,200 | $ | 168,776 | |||||
Supplies | 59,955 | 58,681 | 60,205 | ||||||||
Services | 11,886 | 11,641 | 8,320 | ||||||||
Total Neurology Revenue | $ | 243,156 | $ | 238,522 | $ | 237,301 | |||||
Newborn Care | |||||||||||
Devices and Systems | $ | 77,573 | $ | 72,562 | $ | 72,669 | |||||
Supplies | 43,732 | 47,674 | 49,982 | ||||||||
Services | 22,325 | 23,134 | 15,913 | ||||||||
Total Newborn Care Revenue | $ | 143,630 | $ | 143,370 | $ | 138,564 | |||||
Otometrics | |||||||||||
Devices and Systems | $ | 86,920 | $ | — | $ | — | |||||
Supplies | 27,264 | — | — | ||||||||
Services | — | — | — | ||||||||
Total Otometrics Revenue | $ | 114,184 | $ | — | $ | — | |||||
Total Revenue | $ | 500,970 | $ | 381,892 | $ | 375,865 | |||||
Property and equipment, net: | |||||||||||
United States | $ | 10,128 | $ | 7,024 | |||||||
Canada | 5,068 | 4,941 | |||||||||
Argentina | 1,591 | 2,121 | |||||||||
Ireland | 3,178 | 2,530 | |||||||||
Denmark | 1,158 | 17 | |||||||||
Other foreign countries | 948 | 700 | |||||||||
$ | 22,071 | $ | 17,333 |
Years Ended December 31, | |||||||
2019 | 2018 | ||||||
Property and equipment, net: | |||||||
United States | $ | 11,868 | $ | 10,019 | |||
Ireland | 5,732 | 5,083 | |||||
Canada | 4,140 | 4,504 | |||||
Denmark | 1,799 | 1,371 | |||||
Argentina | — | 999 | |||||
Other foreign countries | 1,163 | 937 | |||||
$ | 24,702 | $ | 22,913 |
Operating Leases | |||
Year Ending December 31, | |||
2018 | $ | 7,038 | |
2019 | 5,732 | ||
2020 | 4,609 | ||
2021 | 3,392 | ||
2022 | 2,457 | ||
Thereafter | 6,850 | ||
Total minimum lease payments | $ | 30,078 |
December 31, 2018 | Additions | Payments | Adjustments | December 31, 2019 | |||||||||||||||
Other assets: | |||||||||||||||||||
Loan receivable | $ | — | $ | 2,200 | $ | — | $ | (294 | ) | $ | 1,906 | ||||||||
Total | $ | — | $ | 2,200 | $ | — | $ | (294 | ) | $ | 1,906 |
December 31, 2018 | Additions | Payments | Adjustments | December 31, 2019 | |||||||||||||||
Liabilities: | |||||||||||||||||||
Interest Rate Swap | $ | 77 | $ | — | $ | — | $ | 236 | $ | 313 | |||||||||
Total | $ | 77 | $ | — | $ | — | $ | 236 | $ | 313 |
December 31, 2016 | Additions | Payments | Adjustments | December 31, 2017 | |||||||||||||||
Liabilities: | |||||||||||||||||||
Contingent consideration | $ | 3,043 | $ | 693 | $ | (2,966 | ) | $ | (623 | ) | $ | 147 | |||||||
Total | $ | 3,043 | $ | 693 | $ | (2,966 | ) | $ | (623 | ) | $ | 147 |
Incorporated By Reference | Incorporated By Reference | |||||||||||||||||||||
Exhibit No. | Exhibit | Filing | Exhibit No. | File No. | File Date | Exhibit | Filing | Exhibit No. | File No. | File Date | ||||||||||||
S-1 | 3.1.1 | 333-44138 | 8/18/2000 | S-1 | 3.1.1 | 333-44138 | 8/18/2000 | |||||||||||||||
8-K | 3.1 | 000-33001 | 9/13/2012 | 8-K | 3.1 | 000-33001 | 9/13/2012 | |||||||||||||||
8-A | 3.1.2 | 000-33001 | 9/6/2002 | 8-K | 3.1 | 000-33001 | 6/7/2019 | |||||||||||||||
8-K | 3.1 | 000-33001 | 6/18/2008 | 8-K | 3.1 | 000-33001 | 12/16/2019 | |||||||||||||||
10-Q | 3.1 | 000-33001 | 5/9/2012 | |||||||||||||||||||
S-1/A | 4.1 | 333-44138 | 2/9/2001 | |||||||||||||||||||
8-A | 3.1.2 | 000-33001 | 9/6/2002 | |||||||||||||||||||
S-1 | 10.1 | 333-44138 | 8/18/2000 | S-1 | 10.1 | 333-44138 | 8/18/2000 | |||||||||||||||
8-K | 10.1 | 000-33001 | 12/18/2018 | |||||||||||||||||||
8-K | 10.1.1 | 000-33001 | 12/18/2018 | |||||||||||||||||||
8-K | 10.1.2 | 000-33001 | 12/18/2018 | |||||||||||||||||||
8-K | 10.1.3 | 000-33001 | 12/18/2018 | |||||||||||||||||||
8-K | 10.1.4 | 000-33001 | 12/18/2018 | |||||||||||||||||||
10.2* | 8-K | 10.1 | 000-33001 | 1/4/2006 | 8-K | 10.1 | 000-33001 | 1/4/2006 | ||||||||||||||
S-1 | 10.3.1 | 333-44138 | 8/18/2000 | S-1 | 10.3.1 | 333-44138 | 8/18/2000 | |||||||||||||||
10-Q | 10.2 | 000-33001 | 8/9/2006 | 10-Q | 10.2 | 000-33001 | 8/9/2006 | |||||||||||||||
10-K | 10.2.3 | 000-33001 | 3/14/2008 | 10-K | 10.2.3 | 000-33001 | 3/14/2008 | |||||||||||||||
10.3* | 10-Q | 10.02 | 000-33001 | 5/9/2008 | 10-Q | 10.02 | 000-33001 | 5/9/2008 | ||||||||||||||
S-1 | 10.4.1 | 333-44138 | 8/18/2000 | S-1 | 10.4.1 | 333-44138 | 8/18/2000 | |||||||||||||||
10.4* | S-1 | 10.15 | 333-44138 | 2/9/2001 | S-1 | 10.15 | 333-44138 | 2/9/2001 | ||||||||||||||
S-1 | 10.15.1 | 333-44138 | 2/9/2001 | S-1 | 10.15.1 | 333-44138 | 2/9/2001 | |||||||||||||||
10.5* | 8-K | 10.2 | 000-33001 | 1/4/2006 | ||||||||||||||||||
10.6* | 14-A | — | 000-33001 | 4/20/2011 | ||||||||||||||||||
10-Q | 10.1 | 000-33001 | 11/7/2011 | |||||||||||||||||||
10-Q | 10.2 | 000-33001 | 11/7/2011 | |||||||||||||||||||
10-Q | 10.3 | 000-33001 | 11/7/2011 | |||||||||||||||||||
10.7* | 14-A | — | 000-33001 | 4/20/2011 | ||||||||||||||||||
14-A | — | 000-33001 | 4/20/2011 | |||||||||||||||||||
10.8* | 10-K | 10.10 | 000-33001 | 3/10/2009 |
Incorporated By Reference |
Incorporated By Reference | |||||||||||
Exhibit No. | Exhibit | Filing | Exhibit No. | File No. | File Date | ||||||
10-K | 000-33001 | 3/16/2015 | |||||||||
10.9* | 8-K | 99.1 | 000-33001 | 4/22/2013 | |||||||
10-Q | 10.1 | 000-33001 | 8/8/2013 | ||||||||
8-K | 10.1 | 000-33001 | 10/9/2015 | ||||||||
10-Q | 000-33001 | 2/29/2016 | |||||||||
10-Q | 10.2 | 000-33001 | 11/3/2016 | ||||||||
10-Q | 10.1 | 000-33001 | 11/3/2016 | ||||||||
10-Q | 10.3 | 000-33001 | 11/3/2016 | ||||||||
8-K | 16.1 | 000-33001 | 3/28/2014 | ||||||||
21.1# | |||||||||||
23.1# | |||||||||||
24.1# | |||||||||||
101.INS# | XBRL Instance Document | ||||||||||
101.SCH# | XBRL Taxonomy Extension Schema Document | ||||||||||
101.CAL# | XBRL Taxonomy Extension Label Calculation Linkbase Document |
Exhibit No. | Exhibit | Filing | Exhibit No. | File No. | File Date | ||||||
10.5* | 8-K | 10.2 | 000-33001 | 1/4/2006 | |||||||
10.6* | 14-A | — | 000-33001 | 4/20/2011 | |||||||
10-Q | 10.1 | 000-33001 | 11/7/2011 | ||||||||
10-Q | 10.2 | 000-33001 | 11/7/2011 | ||||||||
10-Q | 10.3 | 000-33001 | 11/7/2011 | ||||||||
10.7* | 14-A | — | 000-33001 | 4/20/2011 | |||||||
14-A | — | 000-33001 | 4/20/2011 | ||||||||
10.8* | 10-K | 10.10 | 000-33001 | 3/10/2009 | |||||||
10-K | 000-33001 | 3/16/2015 | |||||||||
10.9* | 8-K | 99.1 | 000-33001 | 4/22/2013 | |||||||
10-Q | 10.16 | 000-33001 | 8/8/2018 | ||||||||
8-K | 10.1 | 000-33001 | 10/9/2015 | ||||||||
10-Q | 000-33001 | 2/29/2016 | |||||||||
10-Q | 10.2 | 000-33001 | 11/3/2016 | ||||||||
10-Q | 10.1 | 000-33001 | 11/3/2016 | ||||||||
10-Q | 10.3 | 000-33001 | 11/3/2016 | ||||||||
8-K | 99.1 | 000-33001 | 8/29/2018 | ||||||||
10-Q | 10.18 | 000-33001 | 11/8/2018 | ||||||||
Incorporated By Reference | ||||||||||
Exhibit No. | Exhibit | Filing | Exhibit No. | File No. | File Date | |||||
101 | The following financial information from Natus Medical Incorporated Annual Report on Form 10-K for the fiscal year ended December 31, 2019, formatted in XBRL | |||||||||
104 | The cover page of the Annual Report on Form 10-K formatted in Inline XBRL (included in Exhibit 101). |