Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 03, 2015 | |
Entity [Abstract] | ||
Entity Registrant Name | Luminex Corp | |
Entity Central Index Key | 1,033,905 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 43,047,133 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 111,064 | $ 91,694 |
Short-term Investments | 10,003 | 0 |
Accounts receivable, net | 22,177 | 28,272 |
Inventories, net | 32,598 | 36,616 |
Deferred income taxes | 6,217 | 12,203 |
Prepaids and other | 10,672 | 8,235 |
Total current assets | 192,731 | 177,020 |
Property and equipment, net | 47,903 | 39,945 |
Intangible assets, net | 54,704 | 56,382 |
Deferred income taxes | 15,121 | 15,400 |
Long-term investments | 6,005 | 15,975 |
Goodwill | 49,619 | 49,619 |
Other | 2,949 | 3,185 |
Total assets | 369,032 | 357,526 |
Current liabilities: | ||
Accounts payable | 8,045 | 11,841 |
Accrued liabilities | 17,305 | 14,118 |
Deferred revenue | 4,410 | 4,407 |
Total current liabilities | 29,760 | 30,366 |
Deferred revenue | 2,117 | 2,297 |
Other | 4,763 | 4,869 |
Total liabilities | 36,640 | 37,532 |
Stockholders' equity: | ||
Common stock, $.001 par value, 200,000,000 shares authorized; issued and outstanding: 42,124,803 shares as of June 30, 2015; 41,805,962 shares at December 31, 2014 | 42 | 42 |
Preferred stock, $.001 par value, 5,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Additional paid-in capital | 312,073 | 309,424 |
Accumulated other comprehensive loss | (1,077) | (744) |
Retained earnings | 21,354 | 11,272 |
Total stockholders' equity | 332,392 | 319,994 |
Total liabilities and stockholders' equity | $ 369,032 | $ 357,526 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS Parenthetical - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 |
Stockholders' equity: | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, issued (in shares) | 42,124,803 | 41,805,962 |
Common stock, outstanding (in shares) | 42,124,803 | 41,805,962 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | ||||
Revenue | $ 58,917,000 | $ 55,632,000 | $ 116,658,000 | $ 112,193,000 |
Cost of revenue | 15,647,000 | 17,485,000 | 33,169,000 | 34,092,000 |
Gross profit | 43,270,000 | 38,147,000 | 83,489,000 | 78,101,000 |
Operating expenses: | ||||
Research and development | 11,510,000 | 11,308,000 | 21,655,000 | 22,392,000 |
Selling, general and administrative | 21,025,000 | 20,970,000 | 40,504,000 | 40,415,000 |
Amortization of acquired intangible assets | 776,000 | 965,000 | 1,678,000 | 1,985,000 |
Restructuring costs | 0 | 133,000 | 0 | 353,000 |
Total operating expenses | 33,311,000 | 33,376,000 | 63,837,000 | 65,145,000 |
Income from operations | 9,959,000 | 4,771,000 | 19,652,000 | 12,956,000 |
Interest expense from long-term debt | 0 | 0 | 0 | (6,000) |
Other income, net | 57,000 | (1,000) | 951,000 | (20,000) |
Settlement of litigation | (7,100,000) | 0 | (7,300,000) | 0 |
Income before income taxes | 2,916,000 | 4,770,000 | 13,303,000 | 12,930,000 |
Income taxes | (287,000) | (45,000) | (3,221,000) | (2,239,000) |
Net income | 2,629,000 | 4,725,000 | 10,082,000 | 10,691,000 |
Other comprehensive income: | ||||
Foreign currency translation adjustments | 119,000 | (170,000) | (355,000) | (404,000) |
Unrealized gain on available-for-sale securities, net of tax | 1,000 | 0 | 22,000 | 1,000 |
Other comprehensive income (loss) | 120,000 | (170,000) | (333,000) | (403,000) |
Comprehensive income | $ 2,749,000 | $ 4,555,000 | $ 9,749,000 | $ 10,288,000 |
Net income per share, basic | $ 0.06 | $ 0.11 | $ 0.24 | $ 0.26 |
Shares used in computing net income per share, basic | 42,093 | 41,560 | 41,984 | 41,384 |
Net income per share, diluted | $ 0.06 | $ 0.11 | $ 0.24 | $ 0.26 |
Shares used in computing net income per share, diluted | 42,290 | 42,125 | 42,146 | 41,863 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Document Fiscal Year Focus | 2,015 | |||
Net income | $ 2,629 | $ 4,725 | $ 10,082 | $ 10,691 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 3,124 | 3,607 | 6,322 | 7,535 |
Stock-based compensation | 3,090 | 2,801 | 4,669 | 4,430 |
Deferred income tax expense | 5,154 | 1,842 | 6,031 | 2,520 |
Excess income tax expense from employee stock-based awards | 991 | 0 | 991 | 0 |
Loss (gain) on sale or disposal of assets | 212 | 178 | (681) | 183 |
Non-cash restructuring charges | 0 | 424 | 0 | 1,196 |
Other | 50 | (140) | (103) | (332) |
Changes in operating assets and liabilities: | ||||
Accounts receivable, net | 2,140 | (478) | 6,086 | 3,539 |
Inventories, net | 1,122 | (623) | 4,050 | (1,522) |
Other assets | (2,717) | (295) | (2,393) | 37 |
Accounts payable | (2,932) | 476 | (3,774) | (2,105) |
Accrued liabilities | 8,077 | (2,081) | 388 | (4,515) |
Deferred revenue | (383) | (209) | (176) | 7 |
Net cash provided by operating activities | 20,557 | 10,227 | 31,492 | 21,664 |
Cash flows from investing activities: | ||||
Purchases of available-for-sale securities | 0 | 0 | 0 | (2,996) |
Maturities of available-for-sale securities | 0 | 1,516 | 0 | 4,513 |
Purchase of property and equipment | (3,670) | (3,150) | (12,568) | (6,255) |
Proceeds from sale of assets | 0 | 39 | 893 | 39 |
Acquired technology rights | (25) | (64) | (202) | (64) |
Net cash used in investing activities | (3,695) | (1,659) | (11,877) | (4,763) |
Cash flows from financing activities: | ||||
Payments on debt | 0 | 1,621 | 0 | 1,621 |
Proceeds from employee stock plans and issuance of common stock | 308 | 2,378 | 713 | 3,480 |
Excess income tax expense from employee stock-based awards | (991) | 0 | (991) | 0 |
Net cash (used in) provided by financing activities | (683) | 757 | (278) | 1,859 |
Effect of foreign currency exchange rate on cash | (22) | (1) | 33 | 26 |
Change in cash and cash equivalents | 16,157 | 9,324 | 19,370 | 18,786 |
Cash and cash equivalents, beginning of period | 94,907 | 77,386 | 91,694 | 67,924 |
Cash and cash equivalents, end of period | $ 111,064 | $ 86,710 | $ 111,064 | $ 86,710 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | NOTE 1 — BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared by Luminex Corporation (the “Company” or “Luminex”) in accordance with United States generally accepted accounting principles ("U.S. GAAP") for interim financial information and the rules and regulations of the Securities and Exchange Commission ("SEC"). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. In the opinion of management, all adjustments (consisting of normal recurring entries) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015 . These financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 (the " 2014 10-K"). The Company has reclassified certain 2014 amounts in the accompanying condensed consolidated balance sheet to conform to the 2015 presentation. These reclassifications include $0.8 million from Accounts receivable, net to Prepaids and other. This reclassification was not material to the Company's consolidated financial statements. |
RESTRUCTURING RESTRUCTURING
RESTRUCTURING RESTRUCTURING | 6 Months Ended |
Jun. 30, 2015 | |
RESTRUCTURING [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | NOTE 2 — RESTRUCTURING In August 2013, the Company announced a restructuring plan focused on its Newborn Screening Group and its Brisbane, Australia office where automated punching systems were designed and manufactured. The Company halted development of the newborn screening assay in 2013 and the manufacturing facility in Brisbane, Australia was closed in the third quarter of 2014. The Company reviewed the requirements for held-for-sale and discontinued operations presentation and determined the manufacturing facility in Brisbane, Australia did not meet the definition of a discontinued operation. The Company recorded pre-tax restructuring charges primarily consisting of the non-cash impairment of inventory, intangible assets and property and equipment, together with employee separation costs, which primarily included severance pay and other separation costs such as outplacement services and benefits. The Company recorded non-cash impairment charges of $2.8 million in 2014, including a write-down of goodwill of $1.2 million resulting from the disposal of the manufacturing facility in Brisbane, Australia. See Note 6 — Goodwill and Other Intangible Assets. In addition, the Company measured and accrued the facilities exit costs, primarily consisting of cease-use losses recorded upon vacating the facilities, at fair value upon the Company's exit in the third quarter of 2014. As the final restructuring costs were paid in the fourth quarter of 2014, there is no remaining balance of accrued restructuring costs as of June 30, 2015 or December 31, 2014 . 2013 Restructuring Plan Twelve Months Ended December 31, 2014 Non-cash impairment charges: Inventory $ 1,183 Property and equipment 494 Goodwill 1,159 Employee separation costs 154 Facility exit costs 69 Other 41 Total charges $ 3,100 Recorded to cost of revenue 1,218 Recorded to restructuring costs $ 1,882 |
INVESTMENTS
INVESTMENTS | 6 Months Ended |
Jun. 30, 2015 | |
Investments [Abstract] | |
INVESTMENTS | NOTE 3 — INVESTMENTS Marketable Securities The Company determines the appropriate classification of its investments in debt and equity securities at the time of purchase and reevaluates such determinations at each balance sheet date. Marketable securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities and are reported at fair value, with unrealized gains and losses recognized in earnings. Debt securities are classified as held-to-maturity when the Company has the positive intent and ability to hold the securities to maturity. Held-to-maturity securities are stated at amortized cost, which approximates the fair value of these investments. Debt securities for which the Company does not have the intent or ability to hold to maturity are classified as available-for-sale. Debt and marketable equity securities not classified as held-to-maturity or as trading are classified as available-for-sale, and are carried at fair market value, with the unrealized gains and losses included in the determination of comprehensive income and reported in stockholders’ equity. As of June 30, 2015 and December 31, 2014 , all of the Company’s marketable securities were classified as available for sale. Marketable securities are recorded as either short-term or long-term on the balance sheet based on the contractual maturity date. The fair value of all securities is determined by quoted market prices, market interest rates inputs, or other than quoted prices that are observable either directly or indirectly (as of the end of the reporting period). Declines in fair value below the Company’s carrying value deemed to be other than temporary are charged against net earnings. Available-for-sale securities consisted of the following as of June 30, 2015 (in thousands): Amortized Cost Gains in Accumulated Other Comprehensive Income Losses in Accumulated Other Comprehensive Income Estimated Fair Value Current: Cash equivalents $ 3,605 $ — $ — $ 3,605 Government sponsored debt securities 6,003 3 — 6,006 Non-government sponsored debt securities 4,000 — (3 ) 3,997 Total current securities 13,608 3 (3 ) 13,608 Noncurrent: Government sponsored debt securities 3,998 4 — 4,002 Non-government sponsored debt securities 2,002 1 — 2,003 Total noncurrent securities 6,000 5 — 6,005 Total available-for-sale securities $ 19,608 $ 8 $ (3 ) $ 19,613 Available-for-sale securities consisted of the following as of December 31, 2014 (in thousands): Amortized Cost Gains in Accumulated Other Comprehensive Income Losses in Accumulated Other Comprehensive Income Estimated Fair Value Current: Cash equivalents $ 3,569 $ — $ — $ 3,569 Total current securities 3,569 — — 3,569 Noncurrent: Government sponsored debt securities 10,000 — (11 ) 9,989 Non-government sponsored debt securities 6,002 — (16 ) 5,986 Total noncurrent securities 16,002 — (27 ) 15,975 Total available-for-sale securities $ 19,571 $ — $ (27 ) $ 19,544 There were no proceeds from the sales of available-for-sale securities during the three and six months ended June 30, 2015 or 2014 . Realized gains and losses on sales of investments are determined using the specific identification method. Realized gains and losses are included in Other income, net in the Consolidated Statements of Comprehensive Income. All of the Company's available-for-sale securities with gross unrealized holding losses as of June 30, 2015 and December 31, 2014 had been in a loss position for less than 12 months. The estimated fair value of available-for-sale debt securities as of June 30, 2015 and December 31, 2014 , by contractual maturity, was as follows (in thousands): Estimated Fair Value June 30, 2015 December 31, 2014 Due in one year or less $ 10,003 $ — Due after one year through two years 6,005 15,975 $ 16,008 $ 15,975 Expected maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties. Non-Marketable Securities and Other-Than-Temporary Impairment The Company owns a minority interest in a private company based in the U.S. through its investment of $1.0 million in the third quarter of 2012. This minority interest is included at cost in other long-term assets on the Company’s Consolidated Balance Sheets as the Company does not have significant influence over the investee since the Company owns less than 20% of the voting equity in the investee and the investee is not publicly traded. The Company's other minority interest in a private company was acquired by a third party in July 2013. The Company realized a gain of $5.4 million on the sale of this minority interest investment in the third quarter of 2013 and an additional gain of $0.9 million in the first quarter of 2015 related to the settlement of escrowed funds. The Company regularly evaluates the carrying value of its cost-method investment for impairment and whether any events or circumstances are identified that would significantly harm the fair value of the investment. The primary indicators the Company utilizes to identify these events and circumstances are the investee's ability to remain in business, such as the investee's liquidity and rate of cash use, and the investee’s ability to secure additional funding and the value of that additional funding. In the event a decline in fair value is judged to be other-than-temporary, the Company will record an other-than-temporary impairment charge in Other income, net in the Consolidated Statements of Comprehensive Income (Loss). As the inputs utilized for the Company's periodic impairment assessment are not based on observable market data, this cost-method investment is classified within Level 3 of the fair value hierarchy. To determine the fair value of this investment, the Company uses all available financial information related to the entities, including information based on recent or pending third-party equity investments in these entities. In certain instances, a cost-method investment's fair value is not estimated as there are no identified events or changes in the circumstances that may have a significant adverse effect on the fair value of the investment and to do so would be impractical. |
INVENTORY, NET
INVENTORY, NET | 6 Months Ended |
Jun. 30, 2015 | |
Inventory, Net [Abstract] | |
INVENTORIES, NET | NOTE 4 — INVENTORIES, NET Inventories are stated at the lower of cost or market, with cost determined according to the standard cost method, which approximates the first-in, first-out method. The Company routinely assesses its on-hand inventory for timely identification and measurement of obsolete, slow-moving or otherwise impaired inventory. Inventories consisted of the following (in thousands): June 30, 2015 December 31, 2014 Parts and supplies $ 16,651 $ 19,354 Work-in-progress 7,449 8,687 Finished goods 8,498 8,575 $ 32,598 $ 36,616 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | NOTE 5 — FAIR VALUE MEASUREMENT The Fair Value Measurements and Disclosures Topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) defines fair value, establishes a framework for measuring fair value under U.S. GAAP and enhances disclosures about fair value measurements. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The ASC describes a fair value hierarchy based on the following three levels of inputs that may be used to measure fair value, of which the first two are considered observable and the last unobservable: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company determines the fair value of its investment portfolio assets by obtaining non-binding market prices from its third-party portfolio managers on the last day of the quarter, whose sources may use quoted prices in active markets for identical assets (Level 1 inputs) or inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs) in determining fair value. There were no transfers between Level 1, Level 2, or Level 3 measurements for the three month period ended June 30, 2015 . The following table represents the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2015 and December 31, 2014 (in thousands): Fair Value Measurements as of June 30, 2015 Using Level 1 Level 2 Level 3 Total Assets: Money Market funds $ 3,605 $ — $ — $ 3,605 Government sponsored debt securities — 10,008 — 10,008 Non-government sponsored debt securities — 6,000 — 6,000 Fair Value Measurements as of December 31, 2014 Using Level 1 Level 2 Level 3 Total Assets: Money Market funds $ 3,569 $ — $ — $ 3,569 Government sponsored debt securities — 9,989 — $ 9,989 Non-government sponsored debt securities — 5,986 — $ 5,986 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | NOTE 6 — GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill is reviewed for impairment at least annually at the beginning of the fourth quarter, or more frequently if impairment indicators arise. This goodwill is not expected to be deductible for tax purposes. In connection with the closure of the manufacturing facility in Brisbane, Australia in the third quarter of 2014, the Company recorded a write-down of goodwill of $1.2 million . The amount of goodwill the Company included in the carrying amount of the disposed manufacturing business in Brisbane, Australia was based upon the relative fair value of that facility compared to the portion of the reporting unit that was retained. The changes in the carrying amount of the Company’s goodwill during the period are as follows (in thousands): June 30, 2015 December 31, 2014 Balance at beginning of year $ 49,619 $ 50,738 Allocation in disposal of Brisbane, Australia business (See Note 2) — (1,159 ) Foreign currency translation adjustments — 40 Balance at end of period $ 49,619 $ 49,619 The current in-process research and development project is related to the Company's acquisition of GenturaDx, the foundation of our ARIES ® System, in 2012 and is scheduled to be completed and commercialized in the fourth quarter of 2015. The estimated aggregate costs to complete this project are less than $1.0 million . The Company’s intangible assets are reflected in the table below (in thousands, except weighted average lives): Finite-lived Indefinite-lived Technology, trade secrets and know-how Customer lists and contracts Other identifiable intangible assets IP R&D Total 2014 Balance as of December 31, 2013 $ 29,676 $ 7,952 $ 1,880 $ 40,100 $ 79,608 Foreign currency translation adjustments 28 6 10 — 44 Balance as of December 31, 2014 29,704 7,958 1,890 40,100 79,652 Less: accumulated amortization: Accumulated amortization balance as of December 31, 2013 (16,272 ) (2,326 ) (715 ) — (19,313 ) Amortization expense (3,025 ) (753 ) (135 ) — (3,913 ) Foreign currency translation adjustments (28 ) (6 ) (10 ) — (44 ) Accumulated amortization balance as of December 31, 2014 (19,325 ) (3,085 ) (860 ) — (23,270 ) Net balance as of December 31, 2014 $ 10,379 $ 4,873 $ 1,030 $ 40,100 $ 56,382 Weighted average life (in years) 10 11 11 2015 Balance as of December 31, 2014 $ 29,704 $ 7,958 $ 1,890 $ 40,100 $ 79,652 Removal of fully amortized assets (702 ) (161 ) (238 ) — (1,101 ) Balance as of June 30, 2015 29,002 7,797 1,652 40,100 78,551 Less: accumulated amortization: Accumulated amortization balance as of December 31, 2014 (19,325 ) (3,085 ) (860 ) — (23,270 ) Amortization expense (1,239 ) (372 ) (67 ) — (1,678 ) Removal of fully amortized assets 702 161 238 — 1,101 Accumulated amortization balance as of June 30, 2015 (19,862 ) (3,296 ) (689 ) — (23,847 ) Net balance as of June 30, 2015 $ 9,140 $ 4,501 $ 963 $ 40,100 $ 54,704 Weighted average life (in years) 10 11 11 The estimated aggregate amortization expense for the next five fiscal years and thereafter is as follows (in thousands): 2015 (six months) $ 1,554 2016 3,100 2017 2,144 2018 1,954 2019 1,954 Thereafter 3,898 14,604 IP R&D 40,100 $ 54,704 If the current in-process research and development project is completed and commercialized in the fourth quarter of 2015 as expected, the estimated amortization expense for 2016 through 2019 will be approximately $3.6 million per year and approximately $25.6 million thereafter. |
OTHER COMPREHENSIVE (LOSS) INCO
OTHER COMPREHENSIVE (LOSS) INCOME | 6 Months Ended |
Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | |
Comprehensive Income (Loss) Note | NOTE 7 — OTHER COMPREHENSIVE INCOME (LOSS) Other comprehensive income (loss) represents a measure of all changes in equity that result from recognized transactions and other economic events other than those resulting from investments by and distributions to shareholders. Other comprehensive income (loss) for the Company includes foreign currency translation adjustments and net unrealized holding gains and losses on available-for-sale investments. The following table presents the changes in each component of accumulated other comprehensive income (loss), net of tax (in thousands): Foreign Currency Items Available for Sale Investments Accumulated Other Comprehensive Loss Items Balance as of December 31, 2014 $ (727 ) $ (17 ) $ (744 ) Other comprehensive (loss) income before reclassifications (355 ) 22 (333 ) Amounts reclassified from accumulated other comprehensive income (loss) — — — Net current-period other comprehensive (loss) income (355 ) 22 (333 ) Balance as of June 30, 2015 $ (1,082 ) $ 5 $ (1,077 ) The following table presents the tax (expense) benefit allocated to each component of other comprehensive income (loss) (in thousands): Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 Before Tax Tax Benefit Net of Tax Before Tax Tax Benefit Net of Tax Foreign currency translation adjustments $ 119 $ — $ 119 $ (355 ) $ — $ (355 ) Unrealized losses on available-for-sale investments 1 — 1 34 (12 ) 22 Other comprehensive income (loss) $ 120 $ — $ 120 $ (321 ) $ (12 ) $ (333 ) |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 8 — EARNINGS PER SHARE A reconciliation of the denominators used in computing per share net income, or EPS, is as follows (in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Numerator: Net income $ 2,629 $ 4,725 $ 10,082 $ 10,691 Denominator: Denominator for basic net income per share - weighted average common stock outstanding 42,093 41,560 41,984 41,384 Effect of dilutive securities: stock options and awards 197 565 162 479 Denominator for diluted net income per share - weighted average shares outstanding - diluted 42,290 42,125 42,146 41,863 Basic net income per share $ 0.06 $ 0.11 $ 0.24 $ 0.26 Diluted net income per share $ 0.06 $ 0.11 $ 0.24 $ 0.26 Basic net income per share is computed by dividing the net income for the period by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing the net income for the period by the weighted average number of common and common equivalent shares outstanding during the period. Stock options to acquire approximately 0.5 million and 0.4 million shares for the three months ended June 30, 2015 and 2014 , respectively, and 0.5 million and 0.4 million shares for the six months ended June 30, 2015 and 2014 , respectively, were excluded from the computations of diluted EPS because the effect of including those stock options would have been anti-dilutive. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | NOTE 9 — STOCK-BASED COMPENSATION The Company’s stock option activity for the six months ended June 30, 2015 was as follows: Stock Options (shares in thousands) Shares Weighted Average Exercise Price Outstanding as of December 31, 2014 825 $ 18.84 Granted 962 15.94 Exercised (15 ) 7.48 Cancelled or expired (15 ) 16.98 Outstanding as of June 30, 2015 1,757 $ 17.36 The Company had $8.5 million of total unrecognized compensation costs related to stock options as of June 30, 2015 that are expected to be recognized over a weighted average period of 3.53 years . The Company’s restricted share activity for the six months ended June 30, 2015 was as follows: Restricted Stock Awards (shares in thousands) Shares Weighted Average Grant Price Non-vested as of December 31, 2014 1,098 $ 19.63 Granted 276 15.95 Vested (319 ) 19.17 Cancelled or expired (133 ) 19.45 Non-vested as of June 30, 2015 922 $ 18.72 Restricted Stock Units (in thousands) Shares Non-vested as of December 31, 2014 658 Granted 122 Vested (53 ) Cancelled or expired (186 ) Non-vested as of June 30, 2015 541 As of June 30, 2015 , there was $19.1 million and $4.5 million of total unrecognized compensation costs related to RSAs and RSUs, respectively. That cost is expected to be recognized over a weighted average period of 2.88 years for the RSAs and 2.39 years for the RSUs. The Company issues a small number of cash settled restricted stock units pursuant to the Company's equity incentive plan in certain foreign countries. These grants do not result in the issuance of common stock and are considered immaterial by the Company. The following are the stock-based compensation costs recognized in the Company’s condensed consolidated statements of comprehensive income (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Cost of revenue $ 270 $ 303 $ 504 $ 510 Research and development 733 736 980 1,136 Selling, general and administrative 2,087 1,762 3,185 2,784 Stock-based compensation costs reflected in net income $ 3,090 $ 2,801 $ 4,669 $ 4,430 |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 6 Months Ended |
Jun. 30, 2015 | |
Accrued Liabilities, Current [Abstract] | |
ACCRUED WARRANTY COSTS | NOTE 10 — ACCRUED LIABILITIES Accrued liabilities consisted of the following (in thousands): June 30, 2015 December 31, 2014 Compensation and employee benefits $ 6,913 $ 9,960 Litigation settlement 7,100 — Income and other taxes 565 870 Warranty costs 369 488 Other 2,358 2,800 $ 17,305 $ 14,118 Sales of certain of the Company's systems are subject to a warranty. System warranties typically extend for a period of 12 months from the date of installation not to exceed 24 months from the date of shipment. The Company estimates the amount of warranty claims on sold products that may be incurred based on current and historical data. The actual warranty expense could differ from the estimates made by the Company based on product performance. Warranty expenses are evaluated and adjusted periodically. The following table summarizes the changes in the warranty accrual (in thousands): Accrued warranty costs as of December 31, 2014 $ 488 Warranty adjustments/settlements (324 ) Accrual for warranty costs 205 Accrued warranty costs as of June 30, 2015 $ 369 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 11 — INCOME TAXES At the end of each interim reporting period, an estimate is made of the effective tax rate expected to be applicable for the full year. The estimated full year’s effective tax rate is used to determine the income tax rate for each applicable interim reporting period. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period of the enactment date. The effective tax rate for the six months ended June 30, 2015 was 24.21% , including amounts recorded for discrete events. This differs from the statutory rate of 35% primarily because of the worldwide mix of consolidated earnings and losses before taxes and an assessment regarding the realizability of the Company’s deferred tax assets. The Company’s tax expense reflects the full federal, various state, and foreign blended statutory rates. The Company is utilizing its net operating losses in the U.S., Canada and the Netherlands and currently expects a full year effective tax rate of less than 30% . Therefore, cash taxes to be paid are expected to continue to be less than 10% of book tax expense. The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, Australia, Canada, China, Hong Kong, Japan, the Netherlands, and various states. Due to net operating losses, the U.S., Canadian and Australian tax returns dating back to 2010 can still be reviewed by the taxing authorities. The Company recorded liabilities of $13,800 associated with its uncertain tax positions in the second quarter of 2015. No other material changes to this liability are expected within the next 12 months. For the six months ended June 30, 2015 , there were no material changes to the total amount of unrecognized tax benefits. The Company recognizes interest and penalties related to uncertain tax positions in the provision for income taxes. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 12 - COMMITMENTS AND CONTINGENCIES On August 30, 2012, Abbott Laboratories, Inc. ("Abbott") was named as a defendant in a complaint filed by ENZO Life Sciences, Inc. ("ENZO") in U.S. District Court in Delaware for alleged infringement of U.S. Patent 7,064,197 as a result of Abbott's distribution of Luminex's xTAG Respiratory Viral Panel. Luminex and Abbott entered into an agreement requiring Luminex to defend and indemnify Abbott for any alleged patent infringement resulting from its distribution of Luminex's xTAG Respiratory Viral Panel. The complaint sought unspecified monetary damages and injunctive relief. Abbott filed an answer to the complaint on October 15, 2012. On November 30, 2012, Luminex intervened in the lawsuit. On January 2, 2013, ENZO filed additional claims against Luminex, alleging infringement of U.S. Patent 7,064,197 resulting from Luminex's sale of its xTAG, FlexScript LDA, SelecTAG, and xMAP Salmonella Serotyping Assay products and alleging infringement of U.S. Patent 8,097,405 resulting from Luminex's sale of MultiCode products. Luminex filed an answer to ENZO's additional claims on January 28, 2013. On October 2, 2013, ENZO filed additional claims against Luminex, alleging infringement of U.S. Patent 6,992,180 resulting from Luminex’s sale of MultiCode products. Luminex filed an answer to ENZO’s additional claims on October 21, 2013. Effective July 2, 2015, Luminex agreed to pay ENZO $7.1 million to settle the litigation. This settlement resulted in the entry of orders dismissing (i) with prejudice all claims, counterclaims and causes of action asserted by ENZO against Luminex, (ii) without prejudice all claims, counterclaims and causes of action asserted by Luminex against ENZO, (iii) with prejudice all claims, counterclaims and causes of action solely under U.S. Patent 7,064,197 asserted in the litigation by ENZO against Abbott and (iv) without prejudice all claims, counterclaims and causes of action relating solely to U.S. Patent 7,064,197 asserted by Abbott against ENZO; and resulted in the grant to the Company and its affiliates of a fully paid, non-exclusive, worldwide license under the patents asserted in the complaint. In addition, the Company and ENZO released each other from certain claims related to the above-referenced patents, including the claims and counterclaims asserted in the complaint. ENZO further released Abbott from certain claims, including those asserted in the complaint, related solely to U.S. Patent 7,064,197. The settlement was entered into solely by way of compromise and does not constitute an admission or concession by Luminex of any liability or wrongdoing. Because Luminex (i) has never paid any royalties to ENZO in the past, (ii) will not be required to pay any future or ongoing royalties to ENZO as a result of the settlement, (iii) has never recorded any revenue or expense related to ENZO in operating revenue or in operating expenses in the past, outside of legal fees, and (iv) believes that it does not infringe on any valid and enforceable claim with respect to the asserted patents, Luminex determined that this settlement of litigation expense was outside of operations. Luminex accordingly recorded the settlement as a separate, non-operating line item in the second quarter of 2015. Luminex made the $7.1 million payment to ENZO in July, 2015. On November 1, 2013, Irori Technologies, Inc. ("Irori") filed a complaint against Luminex in U.S. District Court in the Southern District of California alleging infringement of its U.S. Patents 6,372,428, 6,416,714, and 6,352,854 resulting from Luminex’s sale of its xMAP and xTAG based products. Luminex filed a motion to dismiss on January 9, 2014. Irori filed its response to our motion to dismiss on February 7, 2014. The court granted the motion to dismiss without prejudice on February 25, 2014. On March 18, 2014, Irori filed an amended complaint, again alleging infringement of U.S. Patents 6,372,428, 6,416,714, and 6,352,854 resulting from Luminex’s sale of its xMAP and xTAG based products. The complaint seeks unspecified monetary damages and injunctive relief. Luminex filed an answer to Irori’s amended complaint on April 2, 2014. On June 10, 2014, Luminex filed with the USPTO’s Patent Trial and Appeal Board a total of five petitions for inter partes review ("IPR") seeking to invalidate the claims of the three patents involved in the litigation. On June 17, 2014, Luminex filed a motion to stay proceedings in the district court pending the USPTO’s resolution of the IPR of Irori’s patents. Irori filed its opposition to the motion to stay on July 7, 2014, and Luminex filed a reply on July 14, 2014. On July 16, 2014, the court granted Luminex’s motion to stay the case until the earlier of i) a determination by the United States Patent and Trademark Office that reexamination proceedings will not take place or ii) the conclusion of reexamination proceedings and appeals. On December 11, 2014, the USPTO's Patent Trial and Appeal Board instituted review on all five IPR petitions that Luminex filed. On March 5, 2015 Luminex and Irori reached a settlement. The settlement amount was not material. On March 19, 2015 the district court dismissed Irori's lawsuit with prejudice. On March 26, 2015, the IPR petitions were terminated. When and if it appears probable in management's judgment, and based upon consultation with outside counsel, that we will incur monetary damages or other costs in connection with any claims or proceedings, and such costs can be reasonably estimated, we record the estimated liability in the financial statements. If only a range of estimated losses can be estimated, we record an amount within the range that, in management's judgment, reflects the most likely outcome; if none of the estimates within that range is a better estimate than any other amount, we record the liability at the low end of the range of estimates. Any such accrual would be charged to expense in the appropriate period. We disclose significant contingencies when the loss is not probable and/or the amount of the loss is not estimable, when we believe there is at least a reasonable possibility that a loss has been incurred. We recognize costs associated with legal proceedings in the period in which the services were provided. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Jun. 30, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 13 — RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the FASB issued a new standard on revenue recognition which outlines a single comprehensive model to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard is designed to create greater comparability for financial statement users across industries and jurisdictions and also requires enhanced disclosures. The guidance is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is not permitted. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements. |
RESTRUCTURING RESTRUCTURING (Ta
RESTRUCTURING RESTRUCTURING (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
RESTRUCTURING [Abstract] | |
Restructuring and Related Costs [Table Text Block] | 2013 Restructuring Plan Twelve Months Ended December 31, 2014 Non-cash impairment charges: Inventory $ 1,183 Property and equipment 494 Goodwill 1,159 Employee separation costs 154 Facility exit costs 69 Other 41 Total charges $ 3,100 Recorded to cost of revenue 1,218 Recorded to restructuring costs $ 1,882 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Investments [Abstract] | |
Components of available-for-sale securities | Available-for-sale securities consisted of the following as of June 30, 2015 (in thousands): Amortized Cost Gains in Accumulated Other Comprehensive Income Losses in Accumulated Other Comprehensive Income Estimated Fair Value Current: Cash equivalents $ 3,605 $ — $ — $ 3,605 Government sponsored debt securities 6,003 3 — 6,006 Non-government sponsored debt securities 4,000 — (3 ) 3,997 Total current securities 13,608 3 (3 ) 13,608 Noncurrent: Government sponsored debt securities 3,998 4 — 4,002 Non-government sponsored debt securities 2,002 1 — 2,003 Total noncurrent securities 6,000 5 — 6,005 Total available-for-sale securities $ 19,608 $ 8 $ (3 ) $ 19,613 Available-for-sale securities consisted of the following as of December 31, 2014 (in thousands): Amortized Cost Gains in Accumulated Other Comprehensive Income Losses in Accumulated Other Comprehensive Income Estimated Fair Value Current: Cash equivalents $ 3,569 $ — $ — $ 3,569 Total current securities 3,569 — — 3,569 Noncurrent: Government sponsored debt securities 10,000 — (11 ) 9,989 Non-government sponsored debt securities 6,002 — (16 ) 5,986 Total noncurrent securities 16,002 — (27 ) 15,975 Total available-for-sale securities $ 19,571 $ — $ (27 ) $ 19,544 |
Estimated fair value of available-for-sale debt securities, by contractual maturity | The estimated fair value of available-for-sale debt securities as of June 30, 2015 and December 31, 2014 , by contractual maturity, was as follows (in thousands): Estimated Fair Value June 30, 2015 December 31, 2014 Due in one year or less $ 10,003 $ — Due after one year through two years 6,005 15,975 $ 16,008 $ 15,975 |
INVENTORY, NET (Tables)
INVENTORY, NET (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Inventory, Net [Abstract] | |
Schedule of Inventory, Current | Inventories consisted of the following (in thousands): June 30, 2015 December 31, 2014 Parts and supplies $ 16,651 $ 19,354 Work-in-progress 7,449 8,687 Finished goods 8,498 8,575 $ 32,598 $ 36,616 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair value, financial assets (cash equivalents and investments) measured on a recurring basis | The following table represents the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2015 and December 31, 2014 (in thousands): Fair Value Measurements as of June 30, 2015 Using Level 1 Level 2 Level 3 Total Assets: Money Market funds $ 3,605 $ — $ — $ 3,605 Government sponsored debt securities — 10,008 — 10,008 Non-government sponsored debt securities — 6,000 — 6,000 Fair Value Measurements as of December 31, 2014 Using Level 1 Level 2 Level 3 Total Assets: Money Market funds $ 3,569 $ — $ — $ 3,569 Government sponsored debt securities — 9,989 — $ 9,989 Non-government sponsored debt securities — 5,986 — $ 5,986 |
GOODWILL AND OTHER INTANGIBLE23
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the carrying amount of goodwill | The changes in the carrying amount of the Company’s goodwill during the period are as follows (in thousands): June 30, 2015 December 31, 2014 Balance at beginning of year $ 49,619 $ 50,738 Allocation in disposal of Brisbane, Australia business (See Note 2) — (1,159 ) Foreign currency translation adjustments — 40 Balance at end of period $ 49,619 $ 49,619 |
Schedule of intangible assets | The current in-process research and development project is related to the Company's acquisition of GenturaDx, the foundation of our ARIES ® System, in 2012 and is scheduled to be completed and commercialized in the fourth quarter of 2015. The estimated aggregate costs to complete this project are less than $1.0 million . The Company’s intangible assets are reflected in the table below (in thousands, except weighted average lives): Finite-lived Indefinite-lived Technology, trade secrets and know-how Customer lists and contracts Other identifiable intangible assets IP R&D Total 2014 Balance as of December 31, 2013 $ 29,676 $ 7,952 $ 1,880 $ 40,100 $ 79,608 Foreign currency translation adjustments 28 6 10 — 44 Balance as of December 31, 2014 29,704 7,958 1,890 40,100 79,652 Less: accumulated amortization: Accumulated amortization balance as of December 31, 2013 (16,272 ) (2,326 ) (715 ) — (19,313 ) Amortization expense (3,025 ) (753 ) (135 ) — (3,913 ) Foreign currency translation adjustments (28 ) (6 ) (10 ) — (44 ) Accumulated amortization balance as of December 31, 2014 (19,325 ) (3,085 ) (860 ) — (23,270 ) Net balance as of December 31, 2014 $ 10,379 $ 4,873 $ 1,030 $ 40,100 $ 56,382 Weighted average life (in years) 10 11 11 2015 Balance as of December 31, 2014 $ 29,704 $ 7,958 $ 1,890 $ 40,100 $ 79,652 Removal of fully amortized assets (702 ) (161 ) (238 ) — (1,101 ) Balance as of June 30, 2015 29,002 7,797 1,652 40,100 78,551 Less: accumulated amortization: Accumulated amortization balance as of December 31, 2014 (19,325 ) (3,085 ) (860 ) — (23,270 ) Amortization expense (1,239 ) (372 ) (67 ) — (1,678 ) Removal of fully amortized assets 702 161 238 — 1,101 Accumulated amortization balance as of June 30, 2015 (19,862 ) (3,296 ) (689 ) — (23,847 ) Net balance as of June 30, 2015 $ 9,140 $ 4,501 $ 963 $ 40,100 $ 54,704 Weighted average life (in years) 10 11 11 |
Estimated aggregate amortization expense for the next five years and thereafter | The estimated aggregate amortization expense for the next five fiscal years and thereafter is as follows (in thousands): 2015 (six months) $ 1,554 2016 3,100 2017 2,144 2018 1,954 2019 1,954 Thereafter 3,898 14,604 IP R&D 40,100 $ 54,704 |
OTHER COMPREHENSIVE (LOSS) IN24
OTHER COMPREHENSIVE (LOSS) INCOME (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents the changes in each component of accumulated other comprehensive income (loss), net of tax (in thousands): Foreign Currency Items Available for Sale Investments Accumulated Other Comprehensive Loss Items Balance as of December 31, 2014 $ (727 ) $ (17 ) $ (744 ) Other comprehensive (loss) income before reclassifications (355 ) 22 (333 ) Amounts reclassified from accumulated other comprehensive income (loss) — — — Net current-period other comprehensive (loss) income (355 ) 22 (333 ) Balance as of June 30, 2015 $ (1,082 ) $ 5 $ (1,077 ) |
Schedule of Comprehensive Income (Loss) | The following table presents the tax (expense) benefit allocated to each component of other comprehensive income (loss) (in thousands): Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 Before Tax Tax Benefit Net of Tax Before Tax Tax Benefit Net of Tax Foreign currency translation adjustments $ 119 $ — $ 119 $ (355 ) $ — $ (355 ) Unrealized losses on available-for-sale investments 1 — 1 34 (12 ) 22 Other comprehensive income (loss) $ 120 $ — $ 120 $ (321 ) $ (12 ) $ (333 ) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | A reconciliation of the denominators used in computing per share net income, or EPS, is as follows (in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Numerator: Net income $ 2,629 $ 4,725 $ 10,082 $ 10,691 Denominator: Denominator for basic net income per share - weighted average common stock outstanding 42,093 41,560 41,984 41,384 Effect of dilutive securities: stock options and awards 197 565 162 479 Denominator for diluted net income per share - weighted average shares outstanding - diluted 42,290 42,125 42,146 41,863 Basic net income per share $ 0.06 $ 0.11 $ 0.24 $ 0.26 Diluted net income per share $ 0.06 $ 0.11 $ 0.24 $ 0.26 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock options activity | The Company’s stock option activity for the six months ended June 30, 2015 was as follows: Stock Options (shares in thousands) Shares Weighted Average Exercise Price Outstanding as of December 31, 2014 825 $ 18.84 Granted 962 15.94 Exercised (15 ) 7.48 Cancelled or expired (15 ) 16.98 Outstanding as of June 30, 2015 1,757 $ 17.36 |
Restricted shares activity | The Company’s restricted share activity for the six months ended June 30, 2015 was as follows: Restricted Stock Awards (shares in thousands) Shares Weighted Average Grant Price Non-vested as of December 31, 2014 1,098 $ 19.63 Granted 276 15.95 Vested (319 ) 19.17 Cancelled or expired (133 ) 19.45 Non-vested as of June 30, 2015 922 $ 18.72 Restricted Stock Units (in thousands) Shares Non-vested as of December 31, 2014 658 Granted 122 Vested (53 ) Cancelled or expired (186 ) Non-vested as of June 30, 2015 541 |
Stock-based compensation costs recognized in consolidated statements of income | The following are the stock-based compensation costs recognized in the Company’s condensed consolidated statements of comprehensive income (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Cost of revenue $ 270 $ 303 $ 504 $ 510 Research and development 733 736 980 1,136 Selling, general and administrative 2,087 1,762 3,185 2,784 Stock-based compensation costs reflected in net income $ 3,090 $ 2,801 $ 4,669 $ 4,430 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | Accrued liabilities consisted of the following (in thousands): June 30, 2015 December 31, 2014 Compensation and employee benefits $ 6,913 $ 9,960 Litigation settlement 7,100 — Income and other taxes 565 870 Warranty costs 369 488 Other 2,358 2,800 $ 17,305 $ 14,118 |
Changes in warranty accrual | The following table summarizes the changes in the warranty accrual (in thousands): Accrued warranty costs as of December 31, 2014 $ 488 Warranty adjustments/settlements (324 ) Accrual for warranty costs 205 Accrued warranty costs as of June 30, 2015 $ 369 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Prior Period Reclassification Adjustment | $ 0.8 |
RESTRUCTURING (Details)
RESTRUCTURING (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | |||
Asset Impairment Charges | $ 1,159 | $ 2,836 | |
Employee Separation Costs | 154 | ||
Facility Exit Costs | 69 | ||
Other Restructuring Costs | 41 | ||
Total Restructuring Charges | 3,100 | ||
Restructuring Charges Included In Cost Of Revenue | 1,218 | ||
Restructuring Charges And Associated Cost | 1,882 | ||
Inventories [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset Impairment Charges | 1,183 | ||
Property, Plant and Equipment [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset Impairment Charges | 494 | ||
Goodwill [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset Impairment Charges | $ 0 | $ (1,159) |
INVESTMENTS (Details)
INVESTMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Sep. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2014 | |
Components of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | $ 19,608 | $ 19,571 | ||
Gains in Accumulated Other Comprehensive Gain | 8 | 0 | ||
Losses in Accumulated Other Comprehensive Gain | (3) | (27) | ||
Non-government sponsored debt securities fair value disclosure | 6,000 | 5,986 | ||
Government sponsored debt securities fair value disclosure | 10,008 | 9,989 | ||
Estimated Fair Value | 19,613 | 19,544 | ||
Available-for-sale Securities [Abstract] | ||||
Proceeds from sales of available-for-sale-securities | 0 | $ 0 | ||
Available-for-sale securities, debt maturities [Abstract] | ||||
Due in one year or less | 10,003 | 0 | ||
Due after one year through two years | 6,005 | 15,975 | ||
Total estimated fair value of available-for-sale debt securities | $ 16,008 | 15,975 | ||
Ownership percentage in cost method investment | 20.00% | |||
Money Market Funds [Member] | ||||
Components of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | $ 3,605 | 3,569 | ||
Gains in Accumulated Other Comprehensive Gain | 0 | 0 | ||
Losses in Accumulated Other Comprehensive Gain | 0 | 0 | ||
Estimated Fair Value | 3,605 | 3,569 | ||
Non-current government-sponsored debt securities [Member] | ||||
Components of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | 6,003 | |||
Gains in Accumulated Other Comprehensive Gain | 3 | |||
Losses in Accumulated Other Comprehensive Gain | 0 | |||
Estimated Fair Value | 6,006 | |||
Current Non-Government Sponsored Debt Securities [Member] | ||||
Components of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | 4,000 | |||
Gains in Accumulated Other Comprehensive Gain | 0 | |||
Losses in Accumulated Other Comprehensive Gain | (3) | |||
Estimated Fair Value | 3,997 | |||
Total Current Available-for-sale Securities [Member] | ||||
Components of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | 13,608 | 3,569 | ||
Gains in Accumulated Other Comprehensive Gain | 3 | 0 | ||
Losses in Accumulated Other Comprehensive Gain | (3) | 0 | ||
Estimated Fair Value | 13,608 | 3,569 | ||
Non-current government sponsored debt securities | ||||
Components of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | 3,998 | 10,000 | ||
Gains in Accumulated Other Comprehensive Gain | 4 | 0 | ||
Losses in Accumulated Other Comprehensive Gain | 0 | (11) | ||
Government sponsored debt securities fair value disclosure | 4,002 | |||
Estimated Fair Value | 9,989 | |||
Non-Current Non-Government Sponsored Debt Securities [Member] | ||||
Components of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | 2,002 | 6,002 | ||
Gains in Accumulated Other Comprehensive Gain | 1 | 0 | ||
Losses in Accumulated Other Comprehensive Gain | 0 | (16) | ||
Non-government sponsored debt securities fair value disclosure | 2,003 | |||
Estimated Fair Value | 5,986 | |||
Total Non-Current Available-for-sale Securities [Member] | ||||
Components of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | 6,000 | 16,002 | ||
Gains in Accumulated Other Comprehensive Gain | 5 | 0 | ||
Losses in Accumulated Other Comprehensive Gain | 0 | (27) | ||
Estimated Fair Value | 6,005 | $ 15,975 | ||
Investment in Private Company 1 [Member] | ||||
Available-for-sale securities, debt maturities [Abstract] | ||||
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property | 900 | $ 5,400 | ||
Investment in Private Company 2 [Member] | ||||
Available-for-sale securities, debt maturities [Abstract] | ||||
Amount of investments in a private company | $ 1,000 |
INVENTORY, NET (Details)
INVENTORY, NET (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Inventory, Net [Abstract] | ||
Parts and supplies | $ 16,651 | $ 19,354 |
Work-in-progress | 7,449 | 8,687 |
Finished goods | 8,498 | 8,575 |
Inventory, net | $ 32,598 | $ 36,616 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Amounts included in asset accounts [Abstract] | ||
Money Market funds | $ 3,605 | $ 3,569 |
Government sponsored debt securities fair value disclosure | 10,008 | 9,989 |
Non-government sponsored debt securities fair value disclosure | 6,000 | 5,986 |
Fair Value, Inputs, Level 1 [Member] | ||
Amounts included in asset accounts [Abstract] | ||
Money Market funds | 3,605 | 3,569 |
Government sponsored debt securities fair value disclosure | 0 | 0 |
Non-government sponsored debt securities fair value disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Amounts included in asset accounts [Abstract] | ||
Money Market funds | 0 | 0 |
Government sponsored debt securities fair value disclosure | 10,008 | 9,989 |
Non-government sponsored debt securities fair value disclosure | 6,000 | 5,986 |
Fair Value, Inputs, Level 3 [Member] | ||
Amounts included in asset accounts [Abstract] | ||
Money Market funds | 0 | 0 |
Government sponsored debt securities fair value disclosure | 0 | 0 |
Non-government sponsored debt securities fair value disclosure | 0 | $ 0 |
Non-Current Non-Government Sponsored Debt Securities [Member] | ||
Amounts included in asset accounts [Abstract] | ||
Non-government sponsored debt securities fair value disclosure | $ 2,003 |
GOODWILL AND OTHER INTANGIBLE33
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Intangible Assets [Line Items] | ||||||
Asset Impairment Charges | $ 1,159 | $ 2,836 | ||||
Research and Development Expense, Estimated | $ 1,000 | |||||
Goodwill [Roll Forward] | ||||||
Balance at beginning of year | 49,619 | $ 50,738 | 50,738 | |||
Foreign currency translation adjustments | 0 | 40 | ||||
Balance at end of period | $ 49,619 | 49,619 | 49,619 | |||
Finite and Indefinite-lived Intangible Assets [Roll Forward] | ||||||
Balance, beginning | 79,652 | 79,608 | 79,608 | |||
Removal of fully amortized assets | (1,101) | |||||
Foreign currency translation adjustments | 44 | |||||
Balance, ending | 78,551 | 78,551 | 79,652 | |||
Less: accumulated amortization [Abstract] | ||||||
Accumulated amortization, beginning balance | (23,270) | (19,313) | (19,313) | |||
Amortization expense | (776) | $ (965) | (1,678) | (1,985) | (3,913) | |
Removal of amortization of fully amortized assets | 1,101 | |||||
Foreign currency translation adjustments | (44) | |||||
Accumulated amortization, ending balance | (23,847) | (23,847) | (23,270) | |||
Net balance | 54,704 | 54,704 | 56,382 | |||
Estimated aggregate amortization expense for the next five years and thereafter [Abstract] | ||||||
2015 (six months) | 1,554 | 1,554 | ||||
2,015 | 3,100 | 3,100 | ||||
2,016 | 2,144 | 2,144 | ||||
2,017 | 1,954 | 1,954 | ||||
2,018 | 1,954 | 1,954 | ||||
Thereafter | 3,898 | 3,898 | ||||
Total | 14,604 | 14,604 | ||||
IP R&D | 40,100 | 40,100 | ||||
Total | 54,704 | 54,704 | ||||
Intangible Assets Amortization Expense, In-process Research and Development, Years Two-Five | 3,600 | 3,600 | ||||
Intangible Assets Amortization Expense In process Research and Development After Year Five | 25,600 | 25,600 | ||||
In-process Research and Development [Member] | ||||||
Finite and Indefinite-lived Intangible Assets [Roll Forward] | ||||||
Balance, beginning | 40,100 | 40,100 | 40,100 | |||
Removal of fully amortized assets | 0 | |||||
Foreign currency translation adjustments | 0 | |||||
Balance, ending | 40,100 | 40,100 | 40,100 | |||
Less: accumulated amortization [Abstract] | ||||||
Accumulated amortization, beginning balance | 0 | 0 | 0 | |||
Amortization expense | 0 | 0 | ||||
Removal of amortization of fully amortized assets | 0 | |||||
Foreign currency translation adjustments | 0 | |||||
Accumulated amortization, ending balance | 0 | 0 | 0 | |||
Net balance | 40,100 | 40,100 | 40,100 | |||
Technology, Trade Secrets, and Know-how [Member] | ||||||
Finite and Indefinite-lived Intangible Assets [Roll Forward] | ||||||
Balance, beginning | 29,704 | 29,676 | 29,676 | |||
Removal of fully amortized assets | (702) | |||||
Foreign currency translation adjustments | 28 | |||||
Balance, ending | 29,002 | 29,002 | 29,704 | |||
Less: accumulated amortization [Abstract] | ||||||
Accumulated amortization, beginning balance | (19,325) | (16,272) | (16,272) | |||
Amortization expense | (1,239) | (3,025) | ||||
Removal of amortization of fully amortized assets | 702 | |||||
Foreign currency translation adjustments | (28) | |||||
Accumulated amortization, ending balance | (19,862) | (19,862) | (19,325) | |||
Net balance | 9,140 | $ 9,140 | $ 10,379 | |||
Weighted average life (in years) | 10 years | 10 years | ||||
Customer Lists and Contracts [Member] | ||||||
Finite and Indefinite-lived Intangible Assets [Roll Forward] | ||||||
Balance, beginning | $ 7,958 | 7,952 | $ 7,952 | |||
Removal of fully amortized assets | (161) | |||||
Foreign currency translation adjustments | 6 | |||||
Balance, ending | 7,797 | 7,797 | 7,958 | |||
Less: accumulated amortization [Abstract] | ||||||
Accumulated amortization, beginning balance | (3,085) | (2,326) | (2,326) | |||
Amortization expense | (372) | (753) | ||||
Removal of amortization of fully amortized assets | 161 | |||||
Foreign currency translation adjustments | (6) | |||||
Accumulated amortization, ending balance | (3,296) | (3,296) | (3,085) | |||
Net balance | 4,501 | $ 4,501 | $ 4,873 | |||
Weighted average life (in years) | 11 years | 11 years | ||||
Other Identifiable Intangible Assets [Member] | ||||||
Finite and Indefinite-lived Intangible Assets [Roll Forward] | ||||||
Balance, beginning | $ 1,890 | 1,880 | $ 1,880 | |||
Removal of fully amortized assets | (238) | |||||
Foreign currency translation adjustments | 10 | |||||
Balance, ending | 1,652 | 1,652 | 1,890 | |||
Less: accumulated amortization [Abstract] | ||||||
Accumulated amortization, beginning balance | (860) | $ (715) | (715) | |||
Amortization expense | (67) | (135) | ||||
Removal of amortization of fully amortized assets | 238 | |||||
Foreign currency translation adjustments | (10) | |||||
Accumulated amortization, ending balance | (689) | (689) | (860) | |||
Net balance | 963 | $ 963 | $ 1,030 | |||
Weighted average life (in years) | 11 years | 11 years | ||||
Goodwill [Member] | ||||||
Intangible Assets [Line Items] | ||||||
Asset Impairment Charges | $ 0 | $ (1,159) |
OTHER COMPREHENSIVE (LOSS) IN34
OTHER COMPREHENSIVE (LOSS) INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Balance as of December 31, 2014 | $ (744) | |||
Other comprehensive (loss) income before reclassifications | (333) | |||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | |||
Net current-period other comprehensive (loss) income | $ 120 | $ (170) | (333) | $ (403) |
Balance as of June 30, 2015 | (1,077) | (1,077) | ||
Available-for-sale Securities [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Balance as of December 31, 2014 | (17) | |||
Other comprehensive (loss) income before reclassifications | 22 | |||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | |||
Net current-period other comprehensive (loss) income | 22 | |||
Balance as of June 30, 2015 | 5 | 5 | ||
Accumulated Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Balance as of December 31, 2014 | (727) | |||
Other comprehensive (loss) income before reclassifications | (355) | |||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | |||
Net current-period other comprehensive (loss) income | (355) | |||
Balance as of June 30, 2015 | $ (1,082) | $ (1,082) |
OTHER COMPREHENSIVE (LOSS) IN35
OTHER COMPREHENSIVE (LOSS) INCOME (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Foreign currency translation adjustments, before tax | $ 119 | $ (355) | ||
Foreign currency translation adjustments, tax benefit | 0 | 0 | ||
Foreign currency translation adjustments, net of tax | 119 | (355) | ||
Unrealized gains on available-for-sale investments, before tax | 1 | 34 | ||
Unrealized gains on available-for-sale investments, tax benefit | 0 | (12) | ||
Unrealized gains on available-for-sale investments, net of tax | 1 | 22 | ||
Other comprehensive (loss) income, before tax | 120 | (321) | ||
Other comprehensive (loss) income, tax benefit | 0 | (12) | ||
Other comprehensive (loss) income, net of tax | $ 120 | $ (170) | $ (333) | $ (403) |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Numerator: | ||||
Net income | $ 2,629 | $ 4,725 | $ 10,082 | $ 10,691 |
Denominator: | ||||
Denominator for basic net income per share - weighted average common stock outstanding | 42,093,000 | 41,560,000 | 41,984,000 | 41,384,000 |
Effect of dilutive securities: stock options and awards | 197,000 | 565,000 | 162,000 | 479,000 |
Denominator for diluted net income per share - weighted average shares outstanding - diluted | 42,290,000 | 42,125,000 | 42,146,000 | 41,863,000 |
Basic net income per share | $ 0.06 | $ 0.11 | $ 0.24 | $ 0.26 |
Diluted net income per share | $ 0.06 | $ 0.11 | $ 0.24 | $ 0.26 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive restricted stock awards, stock options | 468,360 | 410,067 | 468,360 | 410,067 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - Jun. 30, 2015 - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | Total |
Stock options, additional Disclosures [Abstract] | |
Total unrecognized compensation costs | $ 8.5 |
Unrecognized compensation costs, weighted average period of recognition (in years) | 3 years 6 months 11 days |
Stock Options [Member] | |
Stock options, outstanding [Roll Forward] | |
Options outstanding, beginning balance (in shares) | 825 |
Granted (in shares) | 962 |
Exercised (in shares) | (15) |
Cancelled or expired (in shares) | (15) |
Options outstanding, ending balance (in shares) | 1,757 |
Stock options, additional Disclosures [Abstract] | |
Weighted-average price, beginning of period (in dollars per share) | $ 18.84 |
Weighted-average price, granted (in dollars per share) | 15.94 |
Weighted average price, exercised (in dollars per share) | 7.48 |
Weighted-average price, cancelled or expired (in dollars per share) | 16.98 |
Weighted-average price, end of period (in dollars per share) | $ 17.36 |
Restricted Stock [Member] | |
Stock options, additional Disclosures [Abstract] | |
Total unrecognized compensation costs | $ 19.1 |
Unrecognized compensation costs, weighted average period of recognition (in years) | 2 years 10 months 17 days |
Equity instruments other than options, nonvested [Roll Forward] | |
Non-vested, beginning balance (in shares) | 1,098 |
Granted (in shares) | 276 |
Vested (in shares) | (319) |
Cancelled or expired (in shares) | (133) |
Non-vested, ending balance (in shares) | 922 |
Equity instruments other than options, additional Disclosures [Abstract] | |
Non-vested, beginning balance (in dollars per share) | $ 19.63 |
Granted (in dollars per share) | 15.95 |
Vested (in dollars per share) | 19.17 |
Cancelled or expired (in dollars per share) | 19.45 |
Non-vested, ending balance (in dollars per share) | $ 18.72 |
Restricted Stock Units (RSUs) [Member] | |
Stock options, additional Disclosures [Abstract] | |
Total unrecognized compensation costs | $ 4.5 |
Unrecognized compensation costs, weighted average period of recognition (in years) | 2 years 4 months 21 days |
Equity instruments other than options, nonvested [Roll Forward] | |
Non-vested, beginning balance (in shares) | 658 |
Granted (in shares) | 122 |
Vested (in shares) | (53) |
Cancelled or expired (in shares) | (186) |
Non-vested, ending balance (in shares) | 541 |
STOCK-BASED COMPENSATION (Det38
STOCK-BASED COMPENSATION (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Cost of revenue | ||||
Share-based Compensation, allocation and classification in income statements [Abstract] | ||||
Stock-based compensation costs | $ 270 | $ 303 | $ 504 | $ 510 |
Research and development | ||||
Share-based Compensation, allocation and classification in income statements [Abstract] | ||||
Stock-based compensation costs | 733 | 736 | 980 | 1,136 |
Selling, general and administrative | ||||
Share-based Compensation, allocation and classification in income statements [Abstract] | ||||
Stock-based compensation costs | 2,087 | 1,762 | 3,185 | 2,784 |
Selling, general and administrative | ||||
Share-based Compensation, allocation and classification in income statements [Abstract] | ||||
Stock-based compensation costs | $ 3,090 | $ 2,801 | $ 4,669 | $ 4,430 |
ACCRUED LIABILITIES (Details)
ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Accrued Liabilities, Current [Abstract] | ||
Accrued Employee Benefits, Current | $ 6,913 | $ 9,960 |
Litigation settlement | 7,100 | 0 |
Accrued Income And Other Taxes | 565 | 870 |
Other Accrued Liabilities, Current | 2,358 | 2,800 |
Accrued liabilities | 17,305 | $ 14,118 |
Accrued warranty costs [Roll Forward] | ||
Accrued warranty costs as of December 31, 2014 | 488 | |
Warranty adjustments/settlements | (324) | |
Accrual for warranty costs | 205 | |
Accrued warranty costs as of June 30, 2015 | $ 369 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2015 | |
Effective tax rate, including amounts recorded for discrete events (in hundredths) | 24.21% | ||
Statutory rate (in hundredths) | 35.00% | ||
Maximum rate for cash taxes expected to be paid (in hundredths) | 10.00% | ||
Increase decrease in estimated amount of liability associated with its uncertain tax position | $ 13,800 | ||
Scenario, Forecast [Member] | |||
Effective tax rate, including amounts recorded for discrete events (in hundredths) | 30.00% |
COMMITMENTS AND CONTINGENCIES C
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
COMMITTMENTS AND CONTINGENCIES [Abstract] | ||||
Settlement of litigation | $ (7,100) | $ 0 | $ (7,300) | $ 0 |