Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document and Entity Information | |
Entity Registrant Name | SIERRA WIRELESS INC |
Entity Central Index Key | 1,111,863 |
Document Type | 40-F |
Document Period End Date | Dec. 31, 2018 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Entity Common Stock, Shares Outstanding | 36,067,415 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | false |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE EARNINGS (LOSS) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue | $ 793,602 | $ 690,727 | $ 615,015 |
Cost of sales | 529,031 | 456,488 | 397,724 |
Gross margin | 264,571 | 234,239 | 217,291 |
Expenses | |||
Sales and marketing | 88,587 | 75,135 | 63,870 |
Research and development (note 7) | 93,707 | 82,653 | 72,675 |
Administration | 61,582 | 42,904 | 40,956 |
Restructuring (note 8) | 7,115 | 1,076 | 0 |
Acquisition-related and integration | 3,962 | 8,195 | 843 |
Impairment (note 17) | 0 | 3,668 | 0 |
Loss on disposal of iTank business (note 5(a)) | 2,064 | 0 | 0 |
Amortization | 25,829 | 20,508 | 17,277 |
Total expenses | 282,846 | 234,139 | 195,621 |
Earnings (loss) from operations | (18,275) | 100 | 21,670 |
Foreign exchange gain (loss) | (5,470) | 7,550 | (1,736) |
Other income (note 9) | 51 | 67 | 83 |
Earnings (loss) before income taxes | (23,694) | 7,717 | 20,017 |
Income tax expense | 916 | 3,199 | 4,371 |
Net earnings (loss) | (24,610) | 4,518 | 15,646 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments, net of taxes of $nil | (6,670) | 11,950 | (6,448) |
Comprehensive earnings (loss) | $ (31,280) | $ 16,468 | $ 9,198 |
Net earnings (loss) per share (in dollars) (note 12) | |||
Basic net earnings per share (in dollars) | $ (0.68) | $ 0.14 | $ 0.49 |
Diluted | $ (0.68) | $ 0.14 | $ 0.48 |
Weighted average number of shares outstanding (in thousands) (note 12) | |||
Basic | 36,019 | 32,356 | 32,032 |
Diluted | 36,019 | 32,893 | 32,335 |
Product | |||
Revenue | $ 699,332 | $ 645,402 | $ 578,253 |
Cost of sales | 484,051 | 434,843 | 379,602 |
Services and other | |||
Revenue | 94,270 | 45,325 | 36,762 |
Cost of sales | $ 44,980 | $ 21,645 | $ 18,122 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 89,076 | $ 65,003 |
Restricted cash | 221 | 221 |
Accounts receivable | 171,725 | 173,054 |
Inventories | 50,779 | 53,143 |
Prepaids and other (note 15) | 11,703 | 8,221 |
Total current assets | 323,504 | 299,642 |
Property and equipment (note 16) | 39,842 | 42,977 |
Intangible assets (note 17) | 84,890 | 108,599 |
Goodwill (note 18) | 211,074 | 218,516 |
Deferred income taxes (note 10) | 11,751 | 12,197 |
Other assets | 12,855 | 12,713 |
Total assets | 683,916 | 694,644 |
Current liabilities | ||
Accounts payable and accrued liabilities | 184,220 | 175,367 |
Deferred revenue - current | 6,213 | 7,275 |
Total current liabilities | 190,433 | 182,642 |
Long-term obligations (note 20) | 43,250 | 36,637 |
Deferred income tax liability | 6,103 | 7,845 |
Total liabilities | 239,786 | 227,124 |
Shareholders’ equity | ||
Common stock: no par value; unlimited shares authorized; issued and outstanding: 36,067,415 shares (December 31, 2017 — 35,861,510 shares) | 432,552 | 427,748 |
Preferred stock: no par value; unlimited shares authorized; issued and outstanding: nil shares | 0 | 0 |
Treasury stock: at cost; 119,584 shares (December 31, 2017 — 222,639 shares) | (1,965) | (3,216) |
Additional paid-in capital | 30,984 | 27,962 |
Retained earnings (deficit) | (8,295) | 17,502 |
Accumulated other comprehensive loss (note 21) | (9,146) | (2,476) |
Total equity | 444,130 | 467,520 |
Total liabilities and equity | $ 683,916 | $ 694,644 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Dec. 31, 2018 | Dec. 31, 2017 |
Common stock, issued shares | 36,067,415 | 35,861,510 |
Preferred stock, issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Treasury stock, shares | 119,584 | 222,639 |
Common Stock [Member] | ||
Common stock, outstanding shares | 36,067,415 | 35,861,510 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Treasury Shares [Member] | Additional paid-in capital [Member] | Retained earnings (deficit) [Member] | Accumulated other comprehensive income (loss) [Member] |
Increase (Decrease) in Stockholders' Equity | ||||||
Treasury Stock, Shares | 240,613 | |||||
Balance (in shares) at Dec. 31, 2015 | 32,337,201 | |||||
Balance at Dec. 31, 2015 | $ 358,255 | $ 346,453 | $ (4,017) | $ 23,998 | $ (201) | $ (7,978) |
Increase (Decrease) in Stockholders' Equity | ||||||
Common share cancellation (note 22) (in shares) | (809,872) | |||||
Common share cancellation (note 22) | (10,203) | $ (8,696) | (1,507) | |||
Stock option exercises (note 11) (in shares) | 231,704 | |||||
Stock option exercises (note 11) | 2,048 | $ 2,906 | (858) | |||
Stock-based compensation (note 11) | 7,629 | 7,629 | ||||
Purchase of treasury shares for RSU distribution (in shares) | 305,629 | |||||
Purchase of treasury shares for RSU distribution | (4,214) | $ (4,214) | ||||
Distribution of vested RSUs (in shares) | 100,927 | (190,771) | ||||
Distribution of vested RSUs | (909) | $ 1,787 | $ 3,097 | (5,793) | ||
Net earnings (loss) | 15,646 | 15,646 | ||||
Foreign currency translation adjustments, net of tax | (6,448) | (6,448) | ||||
Balance at Dec. 31, 2016 | 361,804 | $ 342,450 | $ (5,134) | 24,976 | 13,938 | (14,426) |
Balance (in shares) at Dec. 31, 2016 | 31,859,960 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Treasury Stock, Shares | 355,471 | |||||
Common share cancellation (note 22) (in shares) | (170,217) | |||||
Common share cancellation (note 22) | (2,779) | $ (1,825) | (954) | |||
Stock option exercises (note 11) (in shares) | 500,184 | |||||
Stock option exercises (note 11) | 5,840 | $ 8,122 | (2,282) | |||
Stock-based compensation (note 11) | 10,341 | 10,341 | ||||
Distribution of vested RSUs (in shares) | 90,751 | (132,832) | ||||
Distribution of vested RSUs | (1,367) | $ 1,788 | $ 1,918 | (5,073) | ||
Issue of shares on Numerex acquisition, net of share issue cost | 3,580,832 | |||||
Issuance of common shares | 77,213 | $ 77,213 | ||||
Net earnings (loss) | 4,518 | 4,518 | ||||
Foreign currency translation adjustments, net of tax | 11,950 | 11,950 | ||||
Balance at Dec. 31, 2017 | $ 467,520 | $ 427,748 | $ (3,216) | 27,962 | 17,502 | (2,476) |
Balance (in shares) at Dec. 31, 2017 | 35,861,510 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Treasury Stock, Shares | 222,639 | 222,639 | ||||
Common share cancellation (note 22) (in shares) | (161,500) | |||||
Common share cancellation (note 22) | $ (3,120) | $ (1,933) | (1,187) | |||
Stock option exercises (note 11) (in shares) | 221,262 | |||||
Stock option exercises (note 11) | 2,636 | $ 3,621 | (985) | |||
Stock-based compensation (note 11) | 13,060 | 13,060 | ||||
Purchase of treasury shares for RSU distribution (in shares) | 161,000 | |||||
Purchase of treasury shares for RSU distribution | (2,808) | $ (2,808) | ||||
Distribution of vested RSUs (in shares) | 146,143 | (264,055) | ||||
Distribution of vested RSUs | (1,878) | $ 3,116 | $ 4,059 | (9,053) | ||
Net earnings (loss) | (24,610) | (24,610) | ||||
Foreign currency translation adjustments, net of tax | (6,670) | (6,670) | ||||
Balance at Dec. 31, 2018 | $ 444,130 | $ 432,552 | $ (1,965) | $ 30,984 | $ (8,295) | $ (9,146) |
Balance (in shares) at Dec. 31, 2018 | 36,067,415 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Treasury Stock, Shares | 119,584 | 119,584 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities | |||
Net earnings (loss) | $ (24,610) | $ 4,518 | $ 15,646 |
Items not requiring (providing) cash | |||
Amortization | 39,150 | 30,503 | 25,894 |
Stock-based compensation (note 11(a)) | 13,060 | 10,341 | 7,629 |
Deferred income taxes | (1,685) | 824 | (2,646) |
Reduction in accrued royalty obligation | 0 | 0 | (13,045) |
Impairment | 0 | 3,668 | 0 |
Loss on disposal of iTank business (note 5(a)) | 2,064 | 0 | 0 |
Unrealized foreign exchange loss (gain) | 5,973 | (8,507) | (862) |
Other | 279 | (55) | (303) |
Changes in non-cash working capital | |||
Accounts receivable | (5,526) | (12,665) | (28,945) |
Inventories | 1,508 | (6,806) | (5,833) |
Prepaids and other | (3,525) | (5,334) | 6,598 |
Accounts payable and accrued liabilities | 21,944 | (17,750) | 40,248 |
Deferred revenue and credits | (1,402) | 335 | 2,124 |
Cash flows provided by (used in) operating activities | 47,230 | (928) | 46,505 |
Investing activities | |||
Additions to property and equipment | (18,166) | (14,100) | (16,957) |
Additions to intangible assets | (2,933) | (1,706) | (900) |
Proceeds from sale of property & equipment | 93 | 35 | 3 |
Proceeds from sale of iTank business | 5,000 | 0 | 0 |
Acquisitions, net of cash acquired: | |||
Numerex Corp (note 5(a)) | 0 | (18,725) | 0 |
GNSS business of GlobalTop (note 5(b)) | 0 | (3,145) | 0 |
Blue Creation (note 5(c)) | 0 | 0 | (2,882) |
GenX Mobile Inc. (note 5(d)) | 0 | 0 | (5,900) |
Cash flows used in investing activities | (16,006) | (37,641) | (26,636) |
Financing activities | |||
Issuance of common shares, net of issuance cost | 2,636 | 5,708 | 2,048 |
Repurchase of common shares for cancellation (note 22) | (3,120) | (2,779) | (10,203) |
Purchase of treasury shares for RSU distribution | (2,808) | 0 | (4,214) |
Taxes paid related to net settlement of equity awards | (1,878) | (1,367) | (909) |
Payment for contingent consideration | (130) | (1,397) | (16) |
Decrease in other long-term obligations | (627) | (436) | (395) |
Cash flows used in financing activities | (5,927) | (271) | (13,689) |
Effect of foreign exchange rate changes on cash and cash equivalents | (1,224) | 1,292 | 2,656 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 24,073 | (37,548) | 8,836 |
Cash and cash equivalents | 89,076 | 65,003 | 102,772 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 89,297 | $ 65,224 | $ 102,772 |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS | NATURE OF OPERATIONS Sierra Wireless, Inc., together with its subsidiaries (collectively, "the company", "we", "our") was incorporated under the Canada Business Corporations Act on May 31, 1993. Sierra Wireless is an Internet of Things (“IoT”) pioneer that empowers businesses and industries to transform and thrive in the connected economy. Sierra Wireless provides an integrated device-to-cloud solution comprised of embedded and networking solutions seamlessly connected with our IoT platform and connectivity services. Original Equipment Manufacturers (“OEMs”) and enterprises worldwide rely on our expertise in delivering fully-integrated IoT solutions to reduce complexity, get their connected loT products and services to market faster, and improve intelligence at the edge of the network. We have sales, engineering, and research and development teams located in offices around the world. The primary markets for our products are North America, Europe and Asia Pacific. We operate our business under three reportable segments: OEM Solutions Embedded cellular modules, short range wireless modules, Global Navigation Satellite System ("GNSS"), software and tools for OEM customers who integrate wireless connectively into their products and solutions. Enterprise Solutions Intelligent routers and gateways, and management solutions that enable cellular connectivity. IoT Services Internet services including a cloud-based platform for deploying and managing IoT applications, Smart SIM supported by our mobile core networks, managed wireless broadband services to enable worldwide customer IoT deployments and managed end-to-end IoT solutions, including smart devices, network connectivity and service applications, addressing a wide spectrum of vertical markets and industrial customers. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Our consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). (a) Basis of consolidation Our consolidated financial statements include the accounts of the company and its subsidiaries, all of which are wholly-owned, from their respective dates of acquisition of control. All inter-company transactions and balances have been eliminated on consolidation. (b) Use of estimates The consolidated financial statements have been prepared in conformity with U.S. GAAP, which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the year. On an ongoing basis, management reviews its estimates, including those related to revenue recognition, such as determining the nature and timing of satisfaction of performance obligations, determining the standalone selling price of performance obligations, and variable consideration; inventory obsolescence; estimated useful lives of long-lived assets; valuation of intangible assets; goodwill; royalty and warranty accruals; other liabilities; stock-based compensation; allowance for doubtful accounts receivable; income taxes; restructuring costs; contingent consideration and commitments and contingencies, based on currently available information. Actual amounts could differ from estimates. (c) Revenue recognition Product revenue includes sales from embedded cellular modules, short range and GNSS, wireless modules, intelligent routers and gateways, asset tracking and vertical market smart devices, antennas and accessories, and Smart SIMs. Service and other revenue includes sales from cloud services, cellular connectivity services, managed connectivity and application services, software licenses, technical support services, extended warranty services, solution design and consulting services. We recognize revenues when we satisfy performance obligations by transferring the control of promised products or services to customers. Product revenue is recognized at a point in time when a good is shipped or delivered to the customer. Service revenue is recognized over time as the service is rendered or at a point in time upon completion of a service. Our customer contracts can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of allowances for returns and any taxes collected from customers. Our products are generally highly dependent on, and interrelated with, the underlying firmware and cannot function without the firmware. In these cases, the hardware and the firmware are accounted for as a single performance obligation and revenue is recognized at the point in time when control is transferred to resellers and distributors, OEMs, or directly to end customers. Certain customers may receive cash-based incentives or credits, which are accounted for as variable consideration. We estimate the amount of incentives or credits to be provided to customers and reduce revenue recognized. The variable consideration is included in the transaction price to the extent that a significant reversal in the amount of cumulative revenue recognized is not expected to occur when the uncertainty associated with the variable consideration is subsequently resolved. The expected costs associated with assurance-type warranty are recognized as expense when products are sold. Warranty service that is in addition to the assurance that the product complies with agreed upon specifications is a separate performance obligation; its revenue is recognized ratably over the service period. Cloud and connectivity services are provided on either a subscription or consumption basis. Revenue related to cloud and connectivity services provided on a subscription basis is recognized ratably over the contract period. Revenue related to cloud and connectivity services provided on a consumption basis is recognized based on the customer utilization of such resources. Revenues from SIM activation and initial application setup are deferred and recognized over the estimated customer life on a straight-line basis. Licenses for on-premise software provide the customer with a right to use the software as it exists when made available to the customer. Revenue from distinct on-premise licenses are recognized upfront at the point in time when the software is made available to the customer. Revenue from software maintenance, unspecified upgrades and technical support contracts are recognized over the period such items are delivered or services are provided. Technical support contracts extending beyond the current period are deferred and revenue is recognized over the applicable earning period. Revenue from solution design and consulting services are recognized as services are being provided. Remaining performance obligations We do not disclose the value of remaining performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. As of December 31, 2018, we had $20,820 of remaining performance obligations to be recognized, of which we expect to recognize approximately 44% in 2019, 29% in 2020, and 27% in subsequent years. Contract acquisition and fulfillment costs We recognize an asset for the incremental costs of obtaining or fulfilling a contract with a customer if we expect the benefit of those costs to be longer than one year. We have determined that certain sales incentive bonuses and initial setup costs of managed IoT services meet the requirements to be capitalized. We applied a practical expedient to expense costs as incurred for costs to obtain a contract with a customer when the amortization period would have been one year or less. The incremental costs of obtaining or fulfilling a contract with a customer are deferred and amortized over the estimated life of the customer relationship. We classify these deferred contract costs as current or non-current based on the timing of when we expect to recognize the expense. The current and non-current portions of deferred contract costs are included in Prepaids and other current assets and Other assets respectively in our consolidated balance sheets. Significant judgment We determine the transaction price of a customer contract by multiplying the unit price of a good or service with the committed order volume or service period. Certain customers may receive cash-based incentives or credits, which are accounted for as variable consideration. We estimate the expected amount to be provided to customers and exclude it from the transaction price. Sales credits are included in accounts payable and accrued liabilities in our consolidated balance sheets. Our customer contracts can include various combinations of products and services. When a customer contract includes multiple performance obligations, we allocate the transaction price to each performance obligation on a relative standalone selling price basis. We generally determine standalone selling prices based on the price charged to customers or a combination of expected cost, plus a margin and residual methods. Product revenue is recognized at a point in time when a good is shipped or delivered to the customer as it represents the transfer of control of the promised good to a customer. Cloud, connectivity, and managed service revenues are recognized over time as the customer simultaneously receives and consumes the benefits provided by our performance as we perform. Other service revenue is recognized at a point in time upon completion of a service. Contract Balances Receivables - We recognize a right to consideration as a receivable when only the passage of time is required before payment of that consideration is due. Contract Assets - We recognize a right to consideration in exchange for goods or service that we have transferred to a customer as contract assets. Contract assets are comprised mainly of accrued revenue related to monthly IoT service subscriptions, which may include connectivity, cloud applications, and managed services. Contract assets are included in Accounts receivable in our consolidated balance sheet. Deferred Revenue - We recognize an obligation to transfer goods or services to a customer for which we have received consideration from the customer as deferred revenue. Deferred revenue consists of advance payments and billings in excess of revenue recognized, which includes support, extended warranty, cloud application services, and activation fees. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 60 days. The following table provides the changes in contract balances: As at December 31, Change 2018 2017 Contract assets $ 1,953 $ 852 $ 1,101 Deferred revenue - current 6,213 7,275 (1,062 ) Deferred revenue - noncurrent 6,317 3,346 2,971 For the year ended December 31, 2018, $6,073 of deferred revenue was recognized in revenue that was included in the contract liability balance as of December 31, 2017 ( 2017 - $5,009 ). (d) Research and development costs Research and development costs are expensed as they are incurred, with the exception of certain software development costs principally related to software coding, designing system interfaces and installation, and testing of the software, that we capitalize once technological feasibility is reached. We follow the cost reduction method of accounting for certain agreements, including government research and development funding, whereby the benefit of the funding is recognized as a reduction in the cost of the related expenditure when certain criteria stipulated under the terms of those funding agreements have been met, and there is reasonable assurance the research and development funding will be received. (e) Warranty costs Warranty costs are accrued upon the recognition of related revenue, based on our best estimates, with reference to past and expected future experience. Warranty obligations are included in accounts payable and accrued liabilities in our consolidated balance sheet. (f) Royalty costs We have intellectual property license agreements which generally require us to make royalty payments based on a combination of fixed fees and percentage of the revenue generated by sales of products incorporating the licensed technology. We recognize royalty obligations in accordance with the terms of the respective royalty agreements. Royalty costs are recorded as a component of cost of goods sold in the period when incurred. Where agreements are not in place, we recognize our current best estimate of the royalty obligation in cost of goods sold, accrued liabilities and long-term liabilities. Historically (prior to October 1, 2016), in determining this estimate, we based our calculations on an assumption that royalty calculations could be based on a percentage of the entire value of an end-product (i.e., revenue). This conformed with our legacy license agreements. Significant legal precedent exists in the United States supporting the smallest saleable unit (“SSU”) principle (i.e., the principle that any royalty obligations should be no more than a portion of the profits for a component within the product that implements the patented technology) as the appropriate methodology for determining FRAND standard essential patent (“SEP”) royalties. Using this principle, the royalty accrual on our products is based on the value of the patented technology in the chipset, representing the SSU that implements the technology, and not on the entire value of the end-product. The cumulative effect of these legal changes to the licensing landscape, combined with supportive legislative initiatives and broad industry support for the SSU principle, at the time of the expiry of one of our significant legacy IP licenses, prompted management to reassess its contingent royalty obligation estimate during the fourth quarter of the year ended December 31, 2016. The use of the SSU principle as the basis to determine the estimate, as opposed to value of end-product, resulted in a reduction of $13.0 million to our estimated royalty obligation effective October 1, 2016. (g) Market development costs Market development costs are charged to sales and marketing expense to the extent that the benefit is separable from the revenue transaction and the fair value of that benefit is determinable. To the extent that such costs either do not provide a separable benefit, or the fair value of the benefit cannot be reliably estimated, such amounts are recorded as a reduction of revenue. (h) Income taxes Income taxes are accounted for using the asset and liability method. Deferred income tax assets and liabilities are based on temporary differences (differences between the accounting basis and the tax basis of the assets and liabilities), non-capital loss, capital loss, and tax credits carry-forwards are measured using the enacted tax rates and laws expected to apply when these differences reverse. Deferred tax benefits, including non-capital loss, capital loss, and tax credits carry-forwards, are recognized to the extent that realization of such benefits is considered more likely than not. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period that enactment occurs. We include interest and penalties related to income taxes, including unrecognized tax benefits, in Income tax expense. Liabilities for uncertain tax positions are recorded based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. We regularly assess the potential outcomes of examinations by tax authorities in determining the adequacy of our provision for income taxes. We continually assess the likelihood and amount of potential adjustments and adjust the income tax provision, income taxes payable and deferred taxes in the period in which the facts that give rise to a revision become known. We recognize the tax effects related to share-based payments at settlement or expiration in Income tax expense . (i) Stock-based compensation and other stock-based payments Stock options and restricted share units granted to the company’s key officers, directors and employees are accounted for using the fair value-based method. Under this method, compensation cost for stock options is measured at fair value at the date of grant using the Black-Scholes valuation model, and is expensed over the awards' vesting period using the straight-line method. Any consideration paid by plan participants on the exercise of stock options or the purchase of shares is credited to common stock together with any related stock-based compensation expense. Compensation cost for restricted share units is measured at fair value at the date of grant which is the market price of the underlying security, and is expensed over the awards' vesting period using the straight-line method. Compensation cost for performance-based restricted share units is measured using a Monte Carlo valuation model. In the third quarter of 2016, we early adopted ASU 2016-09 and elected to make an entity-wide election to account for forfeitures in compensation expense when they occur. The application of this election did not have a material impact on our financial statements. (j) Earnings (loss) per common share Basic earnings (loss) per share is computed by dividing net earnings (loss) for the period by the weighted average number of company common shares outstanding during the reporting period. Diluted earnings (loss) per share is computed using the treasury stock method. When the effect of options and other securities convertible into common shares is anti-dilutive, including when the company has incurred a loss for the period, basic and diluted earnings (loss) per share are the same. Under the treasury stock method, the number of dilutive shares, if any, is determined by dividing the average market price of shares for the period into the net proceeds of in-the-money options. (k) Translation of foreign currencies Our functional and reporting currency is the U.S. dollar. Revenue and expense items denominated in foreign currencies are translated at exchange rates prevailing during the period. Monetary assets and liabilities denominated in foreign currencies are translated at the period-end exchange rates. Non-monetary assets and liabilities are translated at exchange rates in effect when the assets are acquired or the obligations are incurred. Foreign exchange gains and losses are reflected in Net earnings (loss) for the period. We have foreign subsidiaries that are considered self-contained and integrated within their foreign jurisdiction, and accordingly, use the respective local currency as their functional currency. The assets and liabilities of the foreign subsidiaries, including goodwill and fair value adjustments arising on acquisition, are translated at exchange rates at the balance sheet dates, equity is translated at historical rates, and revenue and expenses are translated at exchange rates prevailing during the period. The foreign exchange gains and losses arising from the translation are reported as a component of other comprehensive income (loss), as presented in note 21, Accumulated other comprehensive loss . (l) Cash and cash equivalents Cash and cash equivalents include cash and short-term deposits with original maturities of three months or less. The carrying amounts approximate fair value due to the short-term maturities of these instruments. (m) Allowance for doubtful accounts receivable We maintain an allowance for our accounts receivable for estimated losses that may result from our customers’ inability to pay. We determine the amount of the allowance by analyzing known uncollectible accounts, aged receivables, economic conditions, historical losses, insured amounts, if any, and changes in customer payment cycles and credit-worthiness. Amounts later determined and specifically identified to be uncollectible are charged against this allowance. If the financial condition of any of our customers deteriorates resulting in an impairment of their ability to make payments, we may increase our allowance. (n) Financing receivables We lease certain hardware devices to a small number of hardware distributors under sales-type leases which have terms ranging from two to four years and bear interest at 2%. We evaluate the credit quality of our financing receivables on an ongoing basis utilizing an aging of the accounts and write-offs, customer collection experience, the customer’s financial condition, known risk characteristics impacting the respective customer base, and other available economic conditions, to determine the appropriate allowance. (o) Derivatives Derivatives, such as foreign currency forward contracts, may be used to hedge the foreign exchange risk on cash flows from commitments denominated in a foreign currency. Derivatives are recorded in Accounts receivable or Accounts payable and accrued liabilities and measured at fair value at each balance sheet date. Any resulting gains and losses from changes in the fair value are recorded in Foreign exchange gain (loss) . (p) Inventories Inventories consist of electronic components and finished goods and are valued at the lower of cost or estimable realizable value, determined on a first-in-first-out basis. Cost is defined as all costs that relate to bringing the inventory to its present condition and location under normal operating conditions. We review the components of our inventory and our inventory purchase commitments on a regular basis for excess and obsolete inventory based on estimated future usage and sales. Write-downs in inventory value or losses on inventory purchase commitments depend on various items, including factors related to customer demand, economic and competitive conditions, technological advances and new product introductions that vary from current expectations. We believe that the estimates used in calculating the inventory provision are reasonable and properly reflect the risk of excess and obsolete inventory. If customer demands for our inventory are substantially less than our estimates, additional inventory write-downs may be required. (q) Property and equipment Property and equipment are stated at cost, less accumulated depreciation and amortization. We amortize our property and equipment on a straight-line basis over the following estimated economic lives: Furniture and fixtures 3-5 years Research and development equipment 3-10 years Production equipment 2-7 years Tooling 1.5-3 years Computer equipment 1-5 years Software 1-5 years Office equipment 3-5 years Monitoring equipment 3-5 years Network equipment 3-7 years Research and development equipment related amortization is included in research and development expense. Tooling, production, monitoring and certain network equipment related amortization is included in cost of goods sold. All other amortization is included in amortization expense. Leasehold improvements and leased vehicles are amortized on a straight-line basis over the lesser of their expected average service life or term of the lease. When we sell property and equipment, we net the historical cost less accumulated depreciation and amortization against the sale proceeds and include the difference in Other income . (r) Intangible assets The estimated useful life of intangible assets with definite lives is the period over which the assets are expected to contribute to our future cash flows. When determining the useful life, we consider the expected use of the asset, useful life of any related intangible asset, any legal, regulatory or contractual provisions that limit the useful life, any legal, regulatory, or contractual renewal or extension provisions without substantial costs or modifications to the existing terms and conditions, the effects of obsolescence, demand, competition and other economic factors, and the expected level of maintenance expenditures relative to the cost of the asset required to obtain future cash flows from the asset. We amortize our intangible assets on a straight-line basis over the following specific periods: Patents and trademarks — 3-5 years Licenses — over the shorter of the term of the license or an estimate of their useful life, ranging from three to ten years Intellectual property and customer relationships — 3-13 years Brand — over the estimated life In-process research and development — over the estimated life In-process research and development (“IPRD”) are intangible assets acquired as part of business combinations. Prior to their completion, IPRD are intangible assets with indefinite life and they are not amortized but subject to impairment test on an annual basis. Research and development related amortization is included in research and development expense. All other amortization is included in Amortization expense. (s) Goodwill Goodwill represents the excess of the purchase price of an acquired business over the fair value assigned to assets acquired and liabilities assumed in a business combination. Goodwill has an indefinite life, is not amortized, and is subject to a two-step impairment test on an annual basis. The first step compares the fair value of the reporting unit to its carrying amount, which includes the goodwill. When the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not to be impaired and the second step of the impairment test is unnecessary. If the carrying amount exceeds the implied fair value of the goodwill, the second step measures the amount of the impairment loss. If the carrying amount exceeds the fair value of the goodwill, an impairment loss is recognized equal to that excess. (t) Impairment of long-lived assets Long-lived assets, including property and equipment, and intangible assets other than goodwill, are assessed for potential impairment when there is evidence that events or changes in circumstances indicate that the carrying amount of an asset may not be recovered. An impairment loss is recognized when the carrying amount of the long-lived asset is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Any required impairment loss is measured as the amount by which the carrying amount of a long-lived asset exceeds its fair value and is recorded as a reduction in the carrying value of the related asset and a charge to operating results. Intangible assets with indefinite lives are tested annually for impairment and in interim periods if certain events occur indicating that the carrying value of the intangible assets may be impaired. (u) Comprehensive income (loss) Comprehensive income (loss) includes net earnings (loss) as well as changes in equity from other non-owner sources. The other changes in equity included in comprehensive income (loss) are comprised of foreign currency cumulative translation adjustments. (v) Investment tax credits Investment tax credits are accounted for using the flow-through method whereby such credits are accounted for as a reduction of income tax expense in the period in which the credit arises. (w) Comparative figures Certain figures presented in the consolidated financial statements have been reclassified to conform to the current year presentation. |
RECENTLY IMPLEMENTED ACCOUNTING
RECENTLY IMPLEMENTED ACCOUNTING STANDARDS | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENTLY IMPLEMENTED ACCOUNTING STANDARDS | RECENTLY IMPLEMENTED ACCOUNTING STANDARDS In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) Restricted Cash . This update addresses diversity in the classification and presentation of changes in restricted cash on the statement of cash flows. This requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents by including restricted cash and restricted cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The standard is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal periods. Early adoption is permitted, and any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. In the fourth quarter of 2017, we early adopted ASU 2016-18 and there was no material impact to our financial statements and business. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments . The update addresses eight specific cash flow issues with the objective of reducing diversity in practice. The standard is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal periods. We adopted the standard in the first quarter of 2018 and it did not have a material impact to our consolidated statements of cash flows. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (ASC 606) . The update is intended to clarify the principles of recognizing revenue, and to develop a common revenue standard for U.S. GAAP and IFRS that would remove inconsistencies in revenue requirements, leading to improved comparability of revenue recognition practices across entities and industries. ASC 606 contains a single model that applies to contracts with customers and two approaches to recognizing revenue: at a point in time or over time. The model features a contract-based five-step analysis of transactions to determine whether, how much, and when revenue is recognized. New estimates and judgmental thresholds have been introduced, which may affect the amount and/or timing of revenue recognized. We adopted the standard as of January 1, 2018 using the full retrospective transition method. The following tables summarize the effects of adopting the accounting standard on our Statement of Operations and Comprehensive Earnings (Loss): Year ended December 31, 2017 As previously reported Effect of adoption of ASC 606 As adjusted Revenue $ 692,077 $ (1,350 ) $ 690,727 Cost of sales 457,130 (642 ) 456,488 Sales and marketing 75,594 (459 ) 75,135 Research and development 83,361 (708 ) 82,653 Income tax expense 3,123 76 3,199 Basic net earnings per share (in dollars) $ 0.13 $ 0.01 $ 0.14 Diluted earnings per share - (in dollars) 0.13 0.01 0.14 Year ended December 31, 2016 As previously reported Effect of adoption of ASC 606 As adjusted Revenue $ 615,607 $ (592 ) $ 615,015 Cost of sales 397,864 (140 ) 397,724 Sales and marketing 64,242 (372 ) 63,870 Research and development 73,077 (402 ) 72,675 Income tax expense 4,310 61 4,371 Basic net earnings per share (in dollars) $ 0.48 $ 0.01 $ 0.49 Diluted earnings per share - (in dollars) 0.48 0.01 0.48 The following table summarizes the effects of adopting the accounting standard on our Balance Sheet: As of December 31, 2017 As previously reported Effect of adoption of ASC 606 As adjusted Assets Accounts receivable $ 168,503 $ 4,551 $ 173,054 Inventories 53,026 117 53,143 Prepaids and other 8,006 215 8,221 Other assets 12,058 655 12,713 Liabilities Accounts payable and accrued liabilities 172,395 2,972 175,367 Deferred revenue 5,455 1,820 7,275 Deferred income tax liability 7,702 143 7,845 Equity Retained earnings 16,899 603 17,502 |
CHANGES IN FUTURE ACCOUNTING ST
CHANGES IN FUTURE ACCOUNTING STANDARDS | 12 Months Ended |
Dec. 31, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
CHANGES IN FUTURE ACCOUNTING STANDARDS | CHANGES IN FUTURE ACCOUNTING STANDARDS In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) and subsequent amendments to the initial guidance: ASU 2017-13, ASU 2018-10 and ASU 2018-11 (collectively, Topic 842). This update is to improve transparency and comparability among organizations by requiring lessees to recognize right-of-use assets and lease liabilities on the balance sheet and requiring additional disclosure about leasing arrangements. The standard is effective for fiscal years beginning after December 15, 2018. Early application is permitted. The Company will adopt Topic 842 in its first quarter of 2019, applying the optional transition method permitted under ASU 2018-11, which relieves entities from restating comparative financial statements, allowing entities to apply and adopt the new lease standard as at the effective date of January 1, 2019, rather than as of the first date of the earliest period presented. In adopting the new standard, we are electing the package of practical expedients provided under the guidance, which applies to expired or existing leases and allows the Company not to reassess whether a contract contains a lease, the lease classification, and any initial direct costs incurred. The Company is also electing the practical expedient to expense short term leases (12 months or less) on a straight-line basis over the lease term, and not separate the lease and non-lease components for all of its leases. The Company’s implementation team is completing the determination of the completeness and accuracy of the Company’s leasing information and is in the final stages of identifying and effecting the internal process changes and controls necessary to assist with the recording, reporting and disclosure requirements under the standard. The adoption of the new lease standard is anticipated to have a material impact on our balance sheet, primarily related to leases of our business premises. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) . This update will replace the incurred loss impairment methodology for credit losses on financial instruments with a methodology that requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early application is permitted. We are in the process of evaluating the impact on our financial statements. In January 2017, FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . This new guidance simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Under the new guidance, entities will perform goodwill impairment tests by comparing fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The standard is effective after December 15, 2019 and early adoption is permitted. We are in the process of evaluating the impact on our financial statements. |
ACQUISITIONS AND DISPOSALS
ACQUISITIONS AND DISPOSALS | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
ACQUISITIONS AND DISPOSALS | ACQUISITIONS AND DISPOSALS |
DISPOSAL OF REMOTE TANK MONITOR
DISPOSAL OF REMOTE TANK MONITORING BUSINESS (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISPOSAL OF REMOTE TANK MONITORING BUSINESS | Disposal of Remote Tank Monitoring Business On December 31, 2018, we completed the sale of substantially all of the assets and liabilities of our remote tank monitoring business ("iTank") for total proceeds of $6.0 million , as it was not deemed to be either a core business or part of our strategic focus. The Company received $5.0 million in cash consideration at closing with the remaining $1.0 million held in escrow. The amount in escrow will be held up to 12 months with $0.8 million contingent on meeting certain milestone events and the remaining $0.2 million to secure the purchaser's rights of indemnification under the asset sale agreement. The Company recognized a loss of $2.1 million , which is included in Loss on disposal of iTank business in the company's consolidated statements of operations, net of $0.2 million in transaction related costs. Prior to the disposal, iTank was part of our IoT Services reporting segment and $2.1 million of goodwill was de-recognized and included within the net assets disposed of. The financial results of iTank operations are included in the Company's consolidated financial statements through December 31, 2018. |
NUMEREX CORP (Notes)
NUMEREX CORP (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Business Acquisition [Line Items] | |
DISPOSAL OF REMOTE TANK MONITORING BUSINESS AND ACQUISITION OF NUMEREX CORP [Text Block] | Acquisition of Numerex Corp. On December 7, 2017, we completed the stock-for-stock merger transaction to acquire Numerex Corp. ("Numerex"). In accordance with the Agreement and Plan of Merger dated August 2, 2017, by and among the company, Numerex and Wireless Acquisition Sub, Inc. we issued 3,580,832 common shares as merger consideration in exchange for all of the outstanding shares of Numerex common stock and certain outstanding Numerex equity awards and warrants. Additionally, approximately $20.2 million in aggregate was paid at closing to retire outstanding Numerex debt. Total consideration for the acquisition is as follows: Issuance of common shares $ 77,346 Debt extinguishment 20,155 $ 97,501 We accounted for the transaction using the acquisition method and accordingly, recorded the tangible and intangible assets acquired and liabilities assumed on the basis of our estimates of their respective fair values as at December 7, 2017 . The excess of the purchase price over the final value assigned to the net assets acquired was recorded as goodwill. The allocation of the purchase price to goodwill was completed as of September 30, 2018. The following table summarizes the final values assigned to the assets acquired and liabilities assumed at the acquisition date: Cash $ 1,430 Deferred income tax asset 1,049 Property and equipment 7,244 Identifiable intangible assets 45,890 Goodwill 51,658 Other working capital (8,623 ) Long-term obligations (1,147 ) Fair value of net assets acquired $ 97,501 Goodwill of $51.7 million resulting from the acquisition consists largely of the expectation that the acquisition will expand our position as a leading global IoT pure-play and significantly increase our subscription-based recurring services revenue. Goodwill is assigned to the IoT Services segment and approximately $4.0 million is deductible for tax purposes. The following table provides the components of the identifiable intangible assets acquired that are subject to amortization: Estimated useful life Amount Customer relationships 9 years $ 26,390 Existing technology 3 years 10,220 Brand 13 years 9,280 $ 45,890 The following table presents the unaudited pro forma results for the year ended December 31, 2017 and 2016. The pro forma financial information combines the results of operations of Sierra Wireless, Inc. and Numerex as though the businesses had been combined as of the beginning of fiscal 2016. The pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of fiscal 2016. The unaudited pro forma financial information presented includes amortization charges for acquired tangible and intangible assets, and related tax effects. Year ended December 31, 2017 2016 Pro forma information Revenue $ 747,719 $ 686,252 Loss from operations (8,973 ) (5,205 ) Net loss (3,577 ) (7,334 ) Basic and diluted loss per share (in dollars) $ (0.10 ) $ (0.21 ) |
GNSS BUSINESS (Notes)
GNSS BUSINESS (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
ACQUISITION OF GNSS BUSINESS [Abstract] | |
ACQUISITION OF GNSS BUSINESS [Text Block] | (c) Acquisition of GNSS business of GlobalTop On March 31, 2017, we completed the acquisition of substantially all of the assets of the Global Navigation Satellite System ("GNSS") embedded module business of GlobalTop Technology Inc. ("GlobalTop") for total cash consideration of $3.1 million . GlobalTop is a Taiwan-based business that specializes in the development and manufacture of a wide variety of GNSS modules and serves customers around the world. The acquisition builds on our strategy to expand our product offerings beyond cellular, Wi-Fi and Bluetooth, servicing customers in the automotive, telematics and asset tracking markets. We accounted for the transaction using the acquisition method and accordingly, we have recorded the tangible and intangible assets acquired and liabilities assumed on the basis of their respective fair values as at March 31, 2017 . The excess of the purchase price over the final value assigned to the net assets acquired was recorded as goodwill. The following table summarizes the final values assigned to the assets acquired at the acquisition date: Assets acquired Inventory $ 604 Property and equipment 175 Identifiable intangible assets 1,160 Goodwill 1,206 Fair value of net assets acquired $ 3,145 Goodwill of $1.2 million resulting from the acquisition consists largely of the expectation that the acquisition will expand our embedded solution portfolio for OEM customers in the key markets we serve. Goodwill is deductible for tax purposes. The following table provides the components of the identifiable intangible assets acquired: Estimated useful life Amount Customer Relationships 5 years $ 640 Existing Technology 3 years 410 Backlog 11 months 110 $ 1,160 The amount of revenue and net earnings from the GNSS business included in our consolidated statements of operations from the acquisition date, through the year ended December 31, 2017, was $3.4 million and $ nil , respectively. There was no significant impact on the Company's revenue and net earnings on a pro forma basis for all periods presented. |
BLUE CREATION BLUE CREATION
BLUE CREATION BLUE CREATION | 12 Months Ended |
Dec. 31, 2016 | |
Blue Creation [Member] | |
Business Acquisition [Line Items] | |
ACQUISITION OF BLUE CREATION | (d) Acquisition of Blue Creation On November 2, 2016, we completed the acquisition of all of the outstanding shares of the parent company and sole owner of Blue Creation for total cash consideration of $6.4 million ( $2.9 million , net of cash acquired), plus a maximum contingent consideration of $0.5 million under a performance-based earn-out formula. We accounted for the transaction using the acquisition method and accordingly, recorded the tangible and intangible assets acquired and liabilities assumed on the basis of their respective fair values as at November 2, 2016 . In accordance with ASC 805, Business Combinations, the earn-out has been recognized as acquisition-related costs over the earn-out period. The following table summarizes the values assigned to the assets acquired and liabilities assumed at the acquisition date: Assets acquired Cash $ 3,563 Accounts receivable 237 Other assets 111 Identifiable intangible assets 2,540 Goodwill 920 $ 7,371 Liabilities assumed Accounts payable and accrued liabilities $ 392 Deferred income taxes 534 Fair value of net assets acquired $ 6,445 Goodwill of $0.9 million resulting from the acquisition will strengthen our strategic position within our OEM Solutions segment. Goodwill is not deductible for tax purposes. The following table provides the components of the identifiable intangible assets acquired: Estimated useful life Amount Customer relationships 3.5 years $ 2,090 Existing technology 4 years 450 $ 2,540 |
GENX MOBILE INC GENX MOBILE INC
GENX MOBILE INC GENX MOBILE INC | 12 Months Ended |
Dec. 31, 2016 | |
Business Acquisition [Line Items] | |
ACQUISITION OF GENX MOBILE INC | (e) Acquisition of GenX Mobile Inc. On August 3, 2016, we completed the acquisition of all of the outstanding shares of GenX Mobile Incorporated ("GenX") for total cash consideration of $7.8 million ( $5.9 million , net of cash acquired), plus contingent consideration for inventory consumption in excess of $1.0 million , up to a maximum of $1.4 million . At acquisition date, we recognized the fair value of the contingent consideration at $1.4 million based on a probability estimate of consumption of acquisition date inventory within the specified 12 month period of the contingent consideration. We accounted for the transaction using the acquisition method and accordingly, recorded the tangible and intangible assets acquired and liabilities assumed on the basis of their respective fair values as at August 3, 2016 . The excess of the purchase price over the value assigned to the net assets acquired was recorded as goodwill. Total consideration for the acquisition is as follows: Cash $ 7,752 Contingent consideration 1,375 $ 9,127 The following table summarizes the values assigned to the assets acquired and liabilities assumed at the acquisition date: Assets acquired Cash $ 1,852 Accounts receivable 1,754 Inventory 2,375 Other assets 124 Identifiable intangible assets 3,926 Goodwill 1,782 $ 11,813 Liabilities assumed Accounts payable and accrued liabilities $ 1,458 Deferred income taxes 1,228 Fair value of net assets acquired $ 9,127 Goodwill of $1.8 million resulting from the acquisition consists largely of the expectation that the acquisition will further strengthen our Enterprise Solutions segment. Goodwill is not deductible for tax purposes. The following table provides the components of the identifiable intangible assets acquired: Estimated useful life Amount Customer relationships 5 years $ 2,640 Existing technology 4 years 973 In-process research and development 313 $ 3,926 |
SEGMENTED INFORMATION
SEGMENTED INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
SEGMENTED INFORMATION | SEGMENTED INFORMATION As our chief operating decision maker does not evaluate the performance of our operating segments based on segment assets, management does not classify asset information on a segmented basis. Despite the absence of discrete financial information, we do measure our revenue based on other forms of categorization such as by the geographic distribution in which our products are sold. REVENUE AND GROSS MARGIN BY SEGMENT Year ended December 31, 2018 OEM Solutions Enterprise Solutions IoT Services Total Revenue $ 583,214 $ 119,927 $ 90,461 $ 793,602 Cost of sales 417,645 58,796 52,590 529,031 Gross margin $ 165,569 $ 61,131 $ 37,871 $ 264,571 Gross margin % 28.4 % 51.0 % 41.9 % 33.3 % Expenses 282,846 Loss from operations $ (18,275 ) Total assets $ 683,916 Year ended December 31, 2017 OEM Solutions Enterprise Solutions IoT Services Total Revenue $ 554,537 $ 101,535 $ 34,655 $ 690,727 Cost of sales 384,230 53,014 19,244 456,488 Gross margin $ 170,307 $ 48,521 $ 15,411 $ 234,239 Gross margin % 30.7 % 47.8 % 44.5 % 33.9 % Expenses 234,139 Earnings from operations $ 100 Total assets $ 694,644 Year ended December 31, 2016 OEM Solutions Enterprise Solutions IoT Services Total Revenue $ 515,925 $ 71,486 $ 27,604 $ 615,015 Cost of sales 349,781 31,537 16,406 $ 397,724 Gross margin $ 166,144 $ 39,949 $ 11,198 $ 217,291 Gross margin % 32.2 % 55.9 % 40.6 % 35.3 % Expenses 195,621 Earnings from operations $ 21,670 Total assets $ 581,457 REVENUE BY GEOGRAPHICAL REGION 2018 2017 2016 Americas $ 314,169 $ 227,905 $ 213,633 Europe, Middle East and Africa 167,812 168,400 141,932 Asia-Pacific 311,621 294,422 259,450 $ 793,602 $ 690,727 $ 615,015 PROPERTY AND EQUIPMENT BY GEOGRAPHICAL REGION 2018 2017 Americas $ 26,045 $ 26,608 Europe, Middle East and Africa 9,027 11,136 Asia-Pacific 4,770 5,233 $ 39,842 $ 42,977 |
RESEARCH AND DEVELOPMENT
RESEARCH AND DEVELOPMENT | 12 Months Ended |
Dec. 31, 2018 | |
Research and Development [Abstract] | |
RESEARCH AND DEVELOPMENT | RESEARCH AND DEVELOPMENT The components of research and development costs consist of the following: 2018 2017 2016 Gross research and development $ 94,352 $ 83,538 $ 73,293 Government tax credits (645 ) (885 ) (618 ) $ 93,707 $ 82,653 $ 72,675 |
RESTRUCTURING (Notes)
RESTRUCTURING (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | . RESTRUCTURING 2018 In the first quarter of 2018, we commenced various initiatives focused on capturing synergies related to the integration of Numerex into the existing operations and efficiency gains in other areas of the business. In total, these initiatives affected 61 employees in various locations and functions within the Company. During the year ended December 31, 2018, we recorded $4.8 million in severance and other related costs associated with this initiative. Additional restructuring costs of approximately $0.2 million will be accrued as employees provide remaining service. As at December 31, 2018, outstanding liability of $0.8 million is included in Accounts payable and accrued liabilities and is expected to be paid by March 2019 . To accelerate our transformation to a Device-to-Cloud IoT solutions company, we initiated certain organizational structure changes during November 2018. This initiative affected 76 employees in various locations and functions within the Company. During the three and twelve months ended December 31, 2018, we recorded $2.3 million in severance and other related costs associated with this initiative. Additional restructuring costs of approximately $0.3 million will be accrued as employees provide remaining services. As at December 31, 2018, outstanding liability of $1.6 million is included in Accounts payable and accrued liabilities and is expected to be paid by July 2019. 2017 In February 2017, we made a decision to relocate the customer support and network operations within the IoT Services segment from Sweden to France and the United States to achieve operational efficiencies. As a result, 19 employees were impacted and we recorded $1.1 million in restructuring costs for the year ended December 31, 2017. No additional costs related to this initiative were recorded in 2018. The following table provides the activity in the restructuring liability: 2018 2017 Balance, beginning of period $ 540 $ — Expensed in period 7,115 1,076 Disbursements (5,081 ) (592 ) Foreign exchange (88 ) 56 $ 2,486 $ 540 Classification: Accounts payable and accrued liabilities (note 19) 2,486 540 $ 2,486 $ 540 By restructuring initiative: February 2017 $ — $ 540 March 2018 842 — November 2018 $ 1,644 $ — $ 2,486 $ 540 |
OTHER INCOME (EXPENSE)
OTHER INCOME (EXPENSE) | 12 Months Ended |
Dec. 31, 2018 | |
Other Income and Expenses [Abstract] | |
OTHER INCOME (EXPENSE) | OTHER INCOME The components of other income for the years ended December 31 were as follows: 2018 2017 2016 Interest income $ 253 $ 245 $ 163 Interest expense (156 ) (159 ) (71 ) Other (46 ) (19 ) (9 ) $ 51 $ 67 $ 83 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The components of earnings (loss) before income taxes consist of the following: 2018 2017 As adjusted 2016 As adjusted Canadian $ 10,880 $ 7,205 $ 15,480 Foreign (34,574 ) 512 4,537 Earnings (loss) before income taxes $ (23,694 ) $ 7,717 $ 20,017 The income tax expense (recovery) consists of: 2018 2017 As adjusted 2016 As adjusted Canadian: Current $ 101 $ 28 $ (287 ) Deferred (4,508 ) 1,665 401 $ (4,407 ) $ 1,693 $ 114 Foreign: Current $ 2,500 $ 2,347 $ 7,304 Deferred 2,823 (841 ) (3,047 ) $ 5,323 $ 1,506 $ 4,257 Total: Current $ 2,601 $ 2,375 $ 7,017 Deferred (1,685 ) 824 (2,646 ) $ 916 $ 3,199 $ 4,371 The reconciliation of income taxes calculated at the statutory rate to the actual income tax provision for the years ended December 31 was as follows: 2018 2017 As adjusted 2016 As adjusted Income tax expense (recovery) at Canadian statutory income tax rates of 26.99% (2017 - 26.01%; 2017 - 26.01%) $ (6,330 ) $ 1,979 $ 5,183 Increase (decrease) in income taxes for: Permanent and other differences 2,173 (1,452 ) (2,192 ) Change in statutory/foreign tax rates and foreign exchange rates 4,238 1,049 11,581 Change in valuation allowance 1,041 1,571 (11,403 ) Stock-based compensation expense 1,973 1,633 1,039 Adjustment to prior years (2,179 ) (1,581 ) 163 Income tax expense (recovery) $ 916 $ 3,199 $ 4,371 Deferred tax assets and liabilities The tax effects of temporary differences that give rise to significant deferred tax assets and deferred tax liabilities were as follows at December 31: 2018 2017 As adjusted Deferred income tax assets (liabilities) Property and equipment $ 1,289 $ 1,470 Non capital loss carry-forwards 89,499 87,854 Capital loss carry-forwards 3,195 3,166 Scientific research and development expenses and credits 20,004 23,829 Reserves and other 16,044 14,784 Investments (801 ) (471 ) Acquired intangibles (10,022 ) (13,761 ) 119,208 116,871 Valuation allowance 113,560 112,519 $ 5,648 $ 4,352 2018 2017 As adjusted Classification: Assets Non-current $ 11,751 $ 12,197 Liabilities Non-current (6,103 ) (7,845 ) $ 5,648 $ 4,352 At December 31, 2018, we have provided for a valuation allowance on our deferred tax assets of $113,560 (2017 - $112,519 ). At December 31, 2018, we have Canadian allowable capital loss carry-forwards of $11,519 that are available, indefinitely, to be deducted against future Canadian taxable capital gains. In addition, we have investment tax credits of $19,669 and $7,957 available to offset future Canadian federal and provincial income taxes payable, respectively. The investment tax credits expire between 2021 and 2038 . At December 31, 2018, our U.S. subsidiary has $6,445 of California research & development tax credits which may be carried forward indefinitely. At December 31, 2018, net operating loss carry-forwards for our foreign subsidiaries were $68,902 for U.S. income tax purposes that expire between 2021 and 2037 , $7 for Brazil income tax purposes, $11,109 for Sweden income tax purposes, $21 for Norway income tax purposes, $60,203 for Luxembourg income tax purposes, and $209,202 for French income tax purposes. The Brazil, Sweden, Norway, Luxembourg and French net operating loss carry-forward may be carried forward indefinitely. Our foreign subsidiaries may be limited in their ability to use foreign net operating losses in any single year depending on their ability to generate significant taxable income. In addition, the utilization of the U.S. net operating losses is also subject to ownership change limitations provided by U.S. federal and specific state income tax legislation. The amount of Brazil net operating losses deducted each year is limited to 30% of each year's taxable income. The amount of French net operating losses deducted each year is limited to €1.0 million plus 50% of French taxable income in excess of €1.0 million . Our French net operating losses carry-forward is subject to the “continuity of business” requirement. Our French subsidiaries also have research tax credit carried forward of $3,458 and employment tax credit carried forward of $287 as at December 31, 2018. The French tax credits may be used to offset against corporate income tax and if any tax credits are not fully utilized within a three year period following the year the tax credits are earned, it may be refunded by the French tax authorities. Tax loss and tax credits carry-forwards are denominated in the currency of the countries in which the respective subsidiaries are located and operate. Fluctuations in currency exchange rates could reduce the U.S. dollar equivalent value of these tax loss and research tax credit carry forwards in future years. In assessing the realizability of our deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which temporary differences become deductible and the loss carry-forwards or tax credits can be utilized. Management considers projected future taxable income and tax planning strategies in making our assessment. No provision for taxes have been provided on undistributed foreign earnings, as it is the company’s intention to indefinitely reinvest undistributed earnings of its foreign subsidiaries. It is not practical to estimate the income tax liability that might be incurred if there is a change in management’s intention in the event that a remittance of such earnings occur in the future. Accounting for uncertainty in income taxes At December 31, 2018, we had gross unrecognized tax benefits of $4,482 (2017 — $4,418 ). Of this total, $652 (2017 — $747 ) represents the amount of unrecognized tax benefits that, if recognized, would favorably impact our effective tax rate. Below is a reconciliation of the total amounts of unrecognized tax benefits for the years ended December 31: 2018 2017 As adjusted Unrecognized tax benefits, beginning of year $ 4,418 $ 4,329 Increases — tax positions taken in prior periods 3 36 Increases — tax positions taken in current period — 61 Settlements and lapses of statute of limitations 61 (8 ) Unrecognized tax benefits, end of year $ 4,482 $ 4,418 We recognize interest expense and penalties related to unrecognized tax benefits within the provision for income tax expense on the consolidated statement of operations. At December 31, 2018, we had increased $29 (2017 - reversed $642 ) for accruals of interest and penalties. In the normal course of business, we are subject to audit by the Canadian federal and provincial taxing authorities, by the U.S. federal and various state taxing authorities and by the taxing authorities in various foreign jurisdictions. Tax years ranging from 2005 to 2018 remain subject to examination in Canada, the United States, the United Kingdom, France, Germany, Australia, China, Hong Kong, Brazil, South Africa, Japan, Korea, Taiwan, Italy, Sweden, Norway, India, Spain, and Luxembourg. The Company regularly engages in discussions and negotiations with tax authorities regarding tax matters in various jurisdictions. The Company believes it is reasonably possible that certain tax matters may be concluded in the next 12 months. The Company estimates that the unrecognized tax benefits at December 31, 2018 could increase by approximately $97 in the next 12 months. Deferred taxes on foreign earnings No provision for taxes have been provided on undistributed foreign earnings, as it is the company’s intention to indefinitely reinvest undistributed earnings of its foreign subsidiaries. It is not practical to estimate the income tax liability that might be incurred if there is a change in management’s intention in the event that a remittance of such earnings occur in the future. |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION PLANS | STOCK-BASED COMPENSATION PLANS (a) Stock-based compensation expense: 2018 2017 2016 Cost of goods sold $ 491 $ 461 $ 420 Sales and marketing 2,784 2,503 1,714 Research and development 2,274 2,038 1,375 Administration 7,511 5,339 4,120 $ 13,060 $ 10,341 $ 7,629 Stock option plan 3,350 3,297 2,170 Restricted stock plan 9,710 7,044 5,459 $ 13,060 $ 10,341 $ 7,629 (b) Stock option plan Under the terms of our Stock Option Plan (the “Plan”), our Board of Directors may grant options to employees, officers and directors. The maximum number of shares issuable pursuant to the Plan is the lesser of 8.1% of the number of issued and outstanding common shares from time to time or 7,000,000 common shares. In addition, the maximum number of shares issuable pursuant to the Plan, together with any shares issuable pursuant to other security-based compensation arrangements, shall not exceed 8.1% of the number of issued and outstanding common shares from time to time. Based on the number of shares outstanding as at December 31, 2018, stock options exercisable into 1,138,266 common shares are available for future allocation under the Plan. The Plan provides that the exercise price of an option will be determined on the date of grant and will not be less than the closing market price of our stock at that date. Options generally vest over four years, with the first 25% vesting at the first anniversary date of the grant and the balance vesting in equal amounts at the end of each month thereafter. We determine the expiry date of each option at the time it is granted, which cannot be more than five years after the date of the grant. The fair value of share options was estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions: 2018 2017 2016 Risk-free interest rate 2.22 % 1.37 % 0.73 % Annual dividends per share Nil Nil Nil Expected stock price volatility 55 % 55 % 51 % Expected option life (in years) 4.0 4.0 4.0 Average fair value of options granted (in dollars) $7.02 $11.09 $4.40 There is no dividend yield because we do not pay, and do not plan to pay, cash dividends on our common shares. The expected stock price volatility is based on the historical volatility of our average monthly stock closing prices over a period equal to the expected life of each option grant. The risk-free interest rate is based on yields from risk-free instruments with a term equal to the expected term of the options being valued. The expected life of options represents the period of time that the options are expected to be outstanding based on historical data of option holder exercise and termination behavior. Forfeitures are accounted for in compensation expense as they occur. The following table presents stock option activity for the years ended December 31: Number of Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Options Cdn.$ U.S.$ In Years U.S.$ Outstanding, December 31, 2015 965,911 21.47 15.44 2.5 3,541 Granted 651,357 14.72 10.95 Exercised (231,704 ) 11.76 8.75 1,608 Forfeited (69,941 ) 19.25 14.32 Outstanding, December 31, 2016 1,315,623 19.65 14.61 2.9 4,687 Granted 685,936 32.16 25.58 Exercised (500,184 ) 14.91 11.86 6,997 Forfeited (37,894 ) 24.58 19.55 Outstanding, December 31, 2017 1,463,481 26.38 20.98 3.2 4,788 Granted 343,173 21.47 15.75 Exercised (221,262 ) 16.10 11.81 1,222 Forfeited (207,044 ) 34.24 25.10 Outstanding, December 31, 2018 1,378,348 26.79 19.64 2.8 822 The intrinsic value of outstanding and exercisable stock options is calculated as the quoted market price of the stock at the balance sheet date, or date of exercise, less the exercise price of the option. For the year ended December 31, 2018, the aggregate intrinsic value of stock options exercised was $1,222 (2017 - $6,997 ). The following table summarizes the stock options outstanding and exercisable at December 31, 2018: Options Outstanding Options Exercisable Range of Number of Weighted Average Remaining Option Life Weighted Average Exercise Price Number of Options Weighted Average Exercise Price Exercise Prices Options (years) Cdn.$ U.S.$ Exercisable Cdn.$ U.S.$ $10.26 - $14.53 U.S. $13.99 - $19.81 Cdn 275,467 2.1 14.28 10.47 153,085 14.28 10.47 $14.54 - $16.4 U.S. $19.82 - $22.37 Cdn 355,436 3.7 21.30 15.62 36,079 21.01 15.41 $16.41 - $24.61 U.S. $22.38 - $33.56 Cdn 390,558 2.9 31.18 22.87 192,812 30.81 22.59 $24.62 - $25.15 U.S. $33.57 - $34.30 Cdn 204,995 3.1 34.23 25.10 94,370 34.23 25.10 $25.16 - $32.29 U.S. $34.31 - $44.03 Cdn 151,892 1.4 40.98 30.05 135,787 41.45 30.40 1,378,348 2.8 26.79 19.64 612,133 28.99 21.26 The options outstanding at December 31, 2018 expire between March 5, 2019 and November 13, 2023 . As at December 31, 2018, the unrecognized stock-based compensation cost related to the non-vested stock options was $5,451 (2017 — $7,879 ; 2016 — $3,754 ), which is expected to be recognized over a weighted average period of 2.3 years (2017 — 2.8 years; 2016 — 2.5 years). (c) Restricted share plans We have two market based restricted share unit plans: one for U.S. employees and one for all non-U.S. employees, and a treasury based restricted share unit plan (collectively, the “RSPs”). The RSPs support our growth and profitability objectives by providing long-term incentives to certain executives and other key employees and also encourage our objective of employee share ownership through the granting of restricted share units (“RSUs”). There is no exercise price or monetary payment required from the employees upon the grant of an RSU or upon the subsequent delivery of our common shares (or, in certain jurisdictions, cash in lieu at the option of the Company) to settle vested RSUs. The form and timing of settlement is subject to local laws. The maximum number of shares issuable pursuant to outstanding awards under the treasury based restricted share unit plan is 3.7% of the number of issued and outstanding shares and the maximum number of shares issuable pursuant to all of our security-based compensation arrangements is 8.1% of the number of issued and outstanding shares. Based on the number of shares outstanding as at December 31, 2018, 404,846 share units are available for future allocation under the Plan. With respect to the two market based RSPs, independent trustees purchase Sierra Wireless common shares over the facilities of the TSX and Nasdaq, which are used to settle vested RSUs. The existing trust funds are variable interest entities and are included in these consolidated financial statements as treasury shares held for RSU distribution. In January 2018, the Board of Directors approved a proposal to include a performance-based component to certain grants of units under our RSPs ("PSUs"). The current outstanding PSUs have a performance-based three year cliff-vesting criteria measured against a benchmark index. The fair value of the PSUs at date of grant are determined using the Monte Carlo simulation model. On February 13, 2019, the Board of Directors approved the issuance of PSUs that are measured against an internal performance benchmark based on achieving service revenue targets and cost savings initiatives, as well as PSUs measured against a benchmark index. The fair value of these PSUs at date of grant are determined using the Monte Carlo simulation model. Generally, RSUs vest over three years , in equal one-third amounts on each anniversary date of the grant and some vest at one year. RSU grants to employees who are resident in France for French tax purposes will not vest before the second anniversary from the date of grant, and any shares issued are subject to an additional two year tax hold period. The intrinsic value of outstanding RSUs is calculated as the quoted market price of the stock at the balance sheet date, or date of vesting. The following table summarizes the RSU activity for the years ended December 31: Number of Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Life Aggregate Intrinsic Value RSUs Cdn.$ U.S.$ In years U.S.$ Outstanding, December 31, 2015 778,233 25.08 18.04 1.8 12,219 Granted 354,517 15.08 11.21 Vested / settled (358,497 ) 19.57 14.56 4,477 Forfeited (28,279 ) 21.85 16.26 Outstanding, December 31, 2016 745,974 22.59 16.81 2.1 11,689 Granted 454,685 32.02 25.47 Vested / settled (284,888 ) 22.86 18.18 6,098 Forfeited (39,030 ) 21.10 16.77 Outstanding, December 31, 2017 876,741 26.80 21.31 2.1 17,919 Granted 754,452 23.78 17.44 Vested / settled (520,660 ) 25.69 18.84 8,876 Forfeited (64,258 ) 25.73 18.86 Outstanding, December 31, 2018 1,046,275 26.23 19.24 2.6 13,289 Outstanding – vested and not settled 117,557 Outstanding – unvested 928,718 Outstanding, December 31, 2018 1,046,275 As at December 31, 2018, the total remaining unrecognized compensation cost associated with the RSUs totaled $11,530 (2017 — $9,346 ; 2016 — $5,408 ), which is expected to be recognized over a weighted average period of 1.9 years (2017 — 1.6 years; 2016 — 1.6 years). |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | EARNINGS (LOSS) PER SHARE The following table provides the reconciliation between basic and diluted earnings (loss) per share: 2018 2017 As adjusted 2016 As adjusted Net earnings (loss) $ (24,610 ) $ 4,518 $ 15,646 Weighted average shares used in computation of: Basic 36,019 32,356 32,032 Assumed conversion — 537 303 Diluted 36,019 32,893 32,335 Net earnings (loss) per share (in dollars): Basic $ (0.68 ) $ 0.14 $ 0.49 Diluted (0.68 ) 0.14 0.48 As the Company incurred a loss for the year ended December 31, 2018, all equity awards for that year were anti-dilutive and were excluded from the diluted weighted average shares. |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | ACCOUNTS RECEIVABLE The components of accounts receivable at December 31 were as follows: 2018 2017 As adjusted Trade receivables $ 154,593 $ 142,514 Less: allowance for doubtful accounts (2,968 ) (1,827 ) 151,625 140,687 Sales taxes receivable 3,016 3,120 R&D tax credits 3,783 4,408 Financing receivables 1,876 1,442 Contract assets (note 2(c) ) 1,953 852 Other receivables 9,472 22,545 $ 171,725 $ 173,054 The movement in the allowance for doubtful accounts during the years ended December 31 were as follows: 2018 2017 2016 Balance, beginning of year $ 1,827 $ 2,486 $ 2,088 Bad debt expense (recovery) 1,159 (535 ) 383 Write-offs and settlements 9 (194 ) 15 Foreign exchange (27 ) 70 — $ 2,968 $ 1,827 $ 2,486 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES The components of inventories at December 31 were as follows: 2018 2017 As adjusted Electronic components $ 28,849 $ 32,753 Finished goods 21,930 20,390 $ 50,779 $ 53,143 |
PREPAIDS AND OTHER
PREPAIDS AND OTHER | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
PREPAIDS AND OTHER | PREPAIDS AND OTHER The components of prepaids and other at December 31 were as follows: 2018 2017 As adjusted Inventory advances $ 3,851 $ 93 Insurance and licenses 846 608 Deposits 1,921 2,161 Contract acquisition and fulfillment costs 880 1,053 Other 4,205 4,306 $ 11,703 $ 8,221 In 2018, $959 of deferred contract acquisition and fulfillment costs were expensed to Sales and marketing and Cost of sales (2017 - $399 ). |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT The components of property and equipment at December 31 were as follows: 2018 Cost Accumulated amortization Net book value Furniture and fixtures $ 3,089 $ 1,634 $ 1,455 Research and development equipment 38,761 28,361 10,400 Production equipment and tooling 43,860 26,427 17,433 Computer equipment 9,099 7,464 1,635 Software 8,180 6,287 1,893 Leasehold improvements 6,754 4,489 2,265 Leased vehicles 983 688 295 Office equipment 1,533 1,162 371 Monitoring equipment 1,821 905 916 Network equipment 6,262 3,083 3,179 $ 120,342 $ 80,500 $ 39,842 2017 Cost Accumulated amortization Net book value Furniture and fixtures $ 2,495 $ 1,477 $ 1,018 Research and development equipment 35,589 25,831 9,758 Production equipment and tooling 39,426 23,229 16,197 Computer equipment 9,611 7,279 2,332 Software 6,859 4,346 2,513 Leasehold improvements 6,399 3,950 2,449 Leased vehicles 1,122 752 370 Office equipment 1,460 971 489 Monitoring equipment 3,881 106 3,775 Network equipment 5,503 1,427 4,076 $ 112,345 $ 69,368 $ 42,977 Amortization expense relating to property and equipment was $18,204 , $14,032 , and $12,492 for the years ended December 31, 2018, 2017, and 2016, respectively. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS The components of intangible assets at December 31 were as follows: 2018 Cost Accumulated amortization Net book value Patents and trademarks $ 15,163 $ 13,328 $ 1,835 Licenses 50,740 49,112 1,628 Intellectual property 28,277 18,671 9,606 Customer relationships 118,741 61,993 56,748 Brand 14,854 2,536 12,318 In-process research and development 10,521 7,766 2,755 $ 238,296 $ 153,406 $ 84,890 2017 Cost Accumulated amortization Net book value Patents and trademarks $ 15,404 $ 12,077 $ 3,327 Licenses 51,859 50,434 1,425 Intellectual property 28,411 13,541 14,870 Customer relationships 124,706 53,627 71,079 Brand 15,153 1,318 13,835 In-process research and development 11,012 6,949 4,063 $ 246,545 $ 137,946 $ 108,599 Estimated annual amortization expense for the next 5 years ended December 31 are as follows: 2019 17,263 2020 13,605 2021 9,750 2022 8,699 2023 8,452 In the first quarter of 2017, we recorded an impairment charge of $3,668 related to an intangible asset recorded on the acquisition of Maingate as a result of a decision to terminate a service offering that was superseded by a more technologically advanced offering in our integrated IoT Services business. Amortization expense relating to intangible assets was $20,946 , $16,471 , and $13,402 for the years ended December 31, 2018, 2017, and 2016, respectively. The weighted-average remaining useful lives of intangible assets was 6.7 years as at December 31, 2018. At December 31, 2018, all intangible assets were subject to amortization. At December 31, 2017, a net carrying amount of $313 included in intangible assets was not subject to amortization. |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | GOODWILL The changes in the carrying amount of goodwill for the years ended December 31 were as follows: 2018 2017 Balance at beginning of year $ 218,516 $ 154,114 Goodwill acquired (note 5 (b) and 5 (c) ) 1,016 51,848 Disposal of assets of a business unit (2,073 ) — Foreign currency translation adjustments (6,385 ) 12,554 $ 211,074 $ 218,516 OEM Solutions $ 107,268 $ 111,348 Enterprise Solutions 26,988 27,405 IoT Services 76,818 79,763 $ 211,074 $ 218,516 We assessed the recoverability of goodwill as at October 1, 2018 for each of the identified reporting units and determined that the fair value of each of the three reporting units exceeded its carrying value. Therefore, the second step of the impairment test that measures the amount of an impairment loss by comparing the implied fair market value with the carrying amount of goodwill for each reporting unit was not required. There was no impairment of goodwill during the years ended December 31, 2018, 2017 and 2016. |
ACCOUNTS PAYABLE AND ACCRUED LI
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | ACCOUNTS PAYABLE AND ACCRUED LIABILITIES The components of accounts payable and accrued liabilities at December 31 were as follows: 2018 2017 As adjusted Trade payables and accruals $ 94,067 $ 94,775 Inventory commitment reserve 843 1,440 Accrued royalties 14,348 14,548 Accrued payroll and related liabilities 18,115 17,572 Deferred rent 2,193 2,597 Professional services 6,702 4,153 Taxes payable (including sales taxes) 4,957 4,070 Product warranties (note 26(b)(iii) ) 7,914 8,159 Sales credits 7,055 3,984 Restructuring liability 2,486 540 Other 25,540 23,529 $ 184,220 $ 175,367 |
LONG-TERM OBLIGATIONS
LONG-TERM OBLIGATIONS | 12 Months Ended |
Dec. 31, 2018 | |
Accounts Payable and Accrued Liabilities, Noncurrent [Abstract] | |
LONG-TERM OBLIGATIONS | LONG-TERM OBLIGATIONS The components of long-term obligations at December 31 were as follows: 2018 2017 As adjusted Accrued royalties $ 28,181 $ 24,318 Deferred revenue 6,317 3,346 Other 8,752 8,973 $ 43,250 $ 36,637 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS The components of accumulated other comprehensive loss at December 31, net of taxes, were as follows: 2018 2017 Balance, beginning of period $ (2,476 ) $ (14,426 ) Foreign currency translation adjustments (4,226 ) 5,416 Gain (loss) on long term intercompany balances (2,444 ) 6,534 Balance, end of period $ (9,146 ) $ (2,476 ) |
SHARE CAPITAL
SHARE CAPITAL | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
SHARE CAPITAL | SHARE CAPITAL On August 1, 2018, we received approval from the TSX of our Notice of Intention to make a Normal Course Issuer Bid ("NCIB"). Pursuant to the NCIB, we may purchase for cancellation up to 3,580,668 of our common shares, or approximately 9.9% of the common shares outstanding as of the date of the announcement (representing 10% of the public float). The NCIB commenced on August 8, 2018 and will terminate on the earlier of: i) August 7, 2019, (ii) the date we complete our purchases pursuant to the notice of intention filed with the TSX, or (iii) the date of notice by us of termination of the NCIB. In 2018, we purchased and canceled 161,500 common shares (2017 — 170,217 common shares) at an average price of $19.32 per share (2017 — $16.35 ). The excess purchase price over and above the average carrying value in the amount of $1,187 (2017 - $954 ) was charged to retained earnings. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Information [Abstract] | |
Cash Flow, Supplemental Disclosures [Text Block] | SUPPLEMENTAL CASH FLOW INFORMATION The following table summarizes supplemental cash flow information and non-cash activities: 2018 2017 2016 Net income taxes paid $ 1,105 $ 6,100 $ 4,181 Interest paid 118 105 127 Non-cash property and equipment additions 231 — 200 Non-cash additions funded by obligation under capital leases 246 143 544 Non-cash additions related to asset retirement obligations — 75 520 As at December 31, 2018, restricted cash of $221 is held in escrow related to certain vendor obligations. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the statement of financial position that sum to the total of the same such amounts shown in the statement of cash flows: 2018 2017 2016 Cash and cash equivalents $ 89,076 $ 65,003 $ 102,772 Restricted cash 221 221 — Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 89,297 $ 65,224 $ 102,772 |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | FAIR VALUE MEASUREMENT (a) Fair value presentation An established fair value hierarchy requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is available and significant to the fair value measurement. There are three levels of inputs that may be used to measure fair value: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Observable inputs other than quoted prices in active markets for identical assets and liabilities, such as quoted prices for identical or similar assets or liabilities 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 - Inputs that are generally unobservable and are supported by little or no market activity and that are significant to the fair value determination of the assets or liabilities. The carrying value of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities approximate their fair value due to the immediate or short-term maturity of these financial instruments. Based on borrowing rates currently available to us for loans with similar terms, the carrying values of our obligations under capital leases, long-term obligations and other long-term liabilities approximate their fair values. Derivatives, such as foreign currency forward contracts, may be used to hedge the foreign exchange risk on cash flows from commitments denominated in a foreign currency. Derivatives are recorded in Accounts receivable or Accounts payable and accrued liabilities and measured at fair value at each balance sheet date. Any resulting gains and losses from changes in the fair value are recorded in Foreign exchange gain (loss) . Fair value of the foreign currency forward contracts are based on observable market inputs such as forward rates in active markets, which represents a Level 2 measurement within the fair value hierarchy. As at December 31, 2018, we were committed to foreign currency forward contracts totaling $50.1 million Canadian dollars with an average forward rate of 1.3176 , maturing between January to December 2019. We recorded unrealized loss of $1,201 in Foreign exchange gain (loss) for those outstanding contracts in the year ended December 31, 2018 (2017 — Foreign exchange gain of $307 ). (b) Credit Facilities On July 31, 2018, we entered into a new committed $30 million senior secured revolving term credit facility ("Revolving Facility") with the Canadian Imperial Bank of Commerce as a sole lender and as Administrative Agent. The new Revolving Facility replaced the Company’s previous $10 million uncommitted revolving credit facility. The Revolving Facility is secured by a pledge against substantially all of our assets and includes an accordion feature, which permits the Company to increase the aggregate revolving loan commitments thereunder on an uncommitted basis subject to certain conditions. The Revolving Facility matures on July 31, 2021 and will be used for general corporate purposes, including, but not limited to, capital expenditures, working capital requirements and/or certain acquisitions permitted under the Revolving Facility. As at December 31, 2018, there were no borrowings under the Revolving Facility. (c) Letters of credit During the second quarter of 2018, we reduced our revolving standby letter of credit facility with Toronto Dominion Bank from $10 million to $1.5 million in connection with the Revolving Facility. The credit facility is used for the issuance of letters of credit and guarantees and is guaranteed by Export Development Canada. As at December 31, 2018, there were two letters of credit issued against the revolving standby letter of credit facility for a total value of $0.1 million . |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Investments, All Other Investments [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS Financial Risk Management Financial instruments consist primarily of cash and cash equivalents, accounts receivable, derivatives such as foreign currency forward and option contracts, accounts payable and accrued liabilities. We have exposure to the following business risks: We maintain substantially all of our cash and cash equivalents with major financial institutions or invest in government instruments. Our deposits with banks may exceed the amount of insurance provided on such deposits. We outsource manufacturing of our products to third parties and, accordingly, we are dependent upon the development and deployment by third parties of their manufacturing abilities. The inability of any supplier or manufacturer to fulfill our supply requirements could impact future results. We have supply commitments to our contract manufacturers based on our estimates of customer and market demand. Where actual results vary from our estimates, whether due to execution on our part or market conditions, we are at risk. Financial instruments that potentially subject us to concentrations of credit risk are primarily accounts receivable. We perform on-going credit evaluations of our customer’s financial condition and require letters of credit or other guarantees whenever deemed appropriate. Although a significant portion of our revenues are in U.S. dollars, we incur operating costs that are denominated in other currencies. Fluctuations in the exchange rates between these currencies could have a material impact on our business, financial condition and results of operations. To manage our foreign currency risks, we may enter into foreign currency forward and options contracts should we consider it to be advisable to reduce our exposure to future foreign exchange fluctuations. We are subject to risks typical of an international business including, but not limited to, differing economic conditions, changes in political climate, differing tax structures other regulations and restrictions and foreign exchange rate volatility. Accordingly, our future results could be materially affected by changes in these or other factors. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES (a) Operating leases We have entered into operating leases for property and equipment. The minimum future payments under various operating leases for our continuing operations in each of the years ended December 31 is as follows: 2019 7,557 2020 6,617 2021 4,986 2022 1,619 2023 674 Subsequent years 4 $ 21,457 (b) Contingent liability on sale of products (i) Under license agreements, we are committed to make royalty payments based on the sales of products using certain technologies. We recognize royalty obligations as determinable in accordance with agreement terms. Where agreements are not in place, we have recognized our current best estimate of the obligation under accrued liabilities and long-term obligations. When agreements are finalized or the obligation becomes statute barred, the estimate will be revised accordingly. (ii) We are a party to a variety of agreements in the ordinary course of business under which we may be obligated to indemnify a third party with respect to certain matters. Typically, these obligations arise as a result of contracts for sale of our products to customers where we provide indemnification against losses arising from matters such as potential intellectual property infringements and product liabilities. The impact on our future financial results is not subject to reasonable estimation because considerable uncertainty exists as to whether claims will be made and the final outcome of potential claims. To date, we have not incurred material costs related to these types of indemnifications. (iii) We accrue product warranty costs, when we sell the related products, to provide for the repair or replacement of defective products. Our accrual is based on an assessment of historical experience and on management’s estimates. Changes in the liability for product warranties were as follows: 2018 2017 As adjusted Balance, beginning of year $ 8,159 $ 7,637 Effect of adoption of ASC 606 — (76 ) 8,159 7,561 Provisions 3,351 4,431 Expenditures (3,596 ) (3,833 ) Balance, end of year $ 7,914 $ 8,159 (c) Other commitments We have entered into purchase commitments totaling approximately $147,029 net of related electronic components inventory of $5,008 (December 31, 2017 — $133,407 , net of electronic components inventory of $5,206 ), with certain contract manufacturers and suppliers under which we have committed to buy a minimum amount of designated products between January 2019 and June 2019. In certain of these agreements, we may be required to acquire and pay for such products up to the prescribed minimum or forecasted purchases. We have also entered into purchase commitments totaling approximately $8,952 (December 31, 2017 — $33,122 ) with certain mobile network operators, under which we have committed to buy a minimum amount of wireless data and wireless data services between January 2019 and October 2022. (d) Legal proceedings We are from time to time involved in litigation, certain other claims and arbitration matters arising in the ordinary course of our business. We accrue for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Significant judgment is required in both the determination of probability and the determination as to whether a loss is reasonably estimable. These accruals are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel and technical experts and other information and events pertaining to a particular matter. To the extent there is a reasonable possibility (within the meaning of ASC 450, Contingencies ) that the losses could exceed the amounts already accrued for those cases for which an estimate can be made, management believes that the amount of any such additional loss would not be material to our results of operations or financial condition. In some instances, we are unable to reasonably estimate any potential loss or range of loss. The nature and progression of litigation can make it difficult to predict the impact a particular lawsuit will have on the Company. For instance, in the case of patent litigation, there are many reasons why we cannot make these assessments, including, among others, one or more of the following: in the early stage of a proceeding, the claimant is not required to specifically identify the manner in which the patent has allegedly been infringed; damages sought that are unspecified, unsupportable, unexplained or uncertain; discovery not having been started or being incomplete; the complexity of the facts that are in dispute (e.g., the analysis of the patent and a comparison to the activities of the Company is a labor-intensive and highly technical process); the difficulty of assessing novel claims; the parties not having engaged in any meaningful settlement discussions; the possibility that other parties may share in any ultimate liability; and the often slow pace of patent litigation. We are required to apply judgment with respect to any potential loss or range of loss in connection with litigation. While we believe we have meritorious defenses to the claims asserted against us in our currently outstanding litigation, and intend to defend ourselves vigorously in all cases, in light of the inherent uncertainties in litigation there can be no assurance that the ultimate resolution of these matters will not significantly exceed the reserves currently accrued by us for those cases for which an estimate can be made. Losses in connection with any litigation for which we are not presently able to reasonably estimate any potential loss or range of loss could be material to our results of operations and financial condition. In January 2017, Koninklijke KPN N.V. filed a patent infringement lawsuit in the United States District Court for the District of Delaware asserting patent infringement by us and our U.S. subsidiary. The lawsuit makes certain allegations concerning the alleged use of data transmission error checking technology in our wireless products. A petition for Inter Partes Review of the patent-in-suit with the United States Patent and Trial Appeal Board has been instituted and a decision is expected in June 2019. In March 2018, the Court granted our motion to dismiss the plaintiff's claims in the lawsuit. The plaintiff has indicated its intention to appeal this decision once a final decision is issued in respect of our counterclaims alleging that the plaintiff has breached its commitments to standard setting organizations. The lawsuit is in the discovery phase with respect to our counterclaims against the plaintiff. The lawsuit is coordinated with several other cases involving this plaintiff for the purposes of scheduling, with the trial date for the first of these coordinated cases currently scheduled for September 2019. In January 2012, a patent holding company, M2M Solutions LLC ("M2M Solutions"), filed a patent infringement lawsuit in the United States District Court for the District of Delaware asserting patent infringement by us, one of our US subsidiaries, and our competitors. The lawsuit makes certain allegations concerning the AirPrime embedded wireless module products, related AirLink products and related services sold by us for use in M2M communication applications. The claim construction order has determined one of the two patents-in-suit to be indefinite and therefore invalid. The lawsuit was dismissed with prejudice in April 2016. In August 2014, M2M Solutions filed a second patent infringement lawsuit against us in the same court with respect to a recently issued patent held by M2M Solutions (US Patent No. 8,648,717), which patent is a continuation of one of the patents-in-suit in the original lawsuit filed against us by M2M Solutions. In March 2017, the United States Patent and Trial Appeal Board issued its decisions in the instituted proceedings, invalidating all independent claims and several dependent claims in the single patent-in-suit. In June 2017, Blackbird Tech LLC ("Blackbird") was joined as a plaintiff in the lawsuit. In September 2018, the court denied a motion to dismiss the lawsuit. The plaintiff has been granted leave to identify additional asserted claims and accused products with respect to the patent-in-suit. The lawsuit is currently in the discovery stage. Trial for our co-defendant has been scheduled for December 2020, and trial in our case has been scheduled for January 2021. Although there can be no assurance that an unfavorable outcome would not have a material adverse effect on our operating results, liquidity or financial position, we believe the claims made in the foregoing legal proceedings are without merit and intend to defend ourselves and our products vigorously in all cases. We are engaged in certain other claims, legal actions and arbitration matters, all in the ordinary course of business, and believe that the ultimate outcome of these claims, legal actions and arbitration matters will not have a material adverse effect on our operating results, liquidity or financial position. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of consolidation | (a) Basis of consolidation Our consolidated financial statements include the accounts of the company and its subsidiaries, all of which are wholly-owned, from their respective dates of acquisition of control. All inter-company transactions and balances have been eliminated on consolidation. |
Use of estimates | Use of estimates The consolidated financial statements have been prepared in conformity with U.S. GAAP, which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the year. On an ongoing basis, management reviews its estimates, including those related to revenue recognition, such as determining the nature and timing of satisfaction of performance obligations, determining the standalone selling price of performance obligations, and variable consideration; inventory obsolescence; estimated useful lives of long-lived assets; valuation of intangible assets; goodwill; royalty and warranty accruals; other liabilities; stock-based compensation; allowance for doubtful accounts receivable; income taxes; restructuring costs; contingent consideration and commitments and contingencies, based on currently available information. Actual amounts could differ from estimates. |
Revenue recognition | Revenue recognition |
Research and Development costs | Research and development costs Research and development costs are expensed as they are incurred, with the exception of certain software development costs principally related to software coding, designing system interfaces and installation, and testing of the software, that we capitalize once technological feasibility is reached. We follow the cost reduction method of accounting for certain agreements, including government research and development funding, whereby the benefit of the funding is recognized as a reduction in the cost of the related expenditure when certain criteria stipulated under the terms of those funding agreements have been met, and there is reasonable assurance the research and development funding will be received. |
Warranty costs | Warranty costs Warranty costs are accrued upon the recognition of related revenue, based on our best estimates, with reference to past and expected future experience. Warranty obligations are included in accounts payable and accrued liabilities in our consolidated balance sheet. |
Royalty costs | Royalty costs We have intellectual property license agreements which generally require us to make royalty payments based on a combination of fixed fees and percentage of the revenue generated by sales of products incorporating the licensed technology. We recognize royalty obligations in accordance with the terms of the respective royalty agreements. Royalty costs are recorded as a component of cost of goods sold in the period when incurred. Where agreements are not in place, we recognize our current best estimate of the royalty obligation in cost of goods sold, accrued liabilities and long-term liabilities. Historically (prior to October 1, 2016), in determining this estimate, we based our calculations on an assumption that royalty calculations could be based on a percentage of the entire value of an end-product (i.e., revenue). This conformed with our legacy license agreements. Significant legal precedent exists in the United States supporting the smallest saleable unit (“SSU”) principle (i.e., the principle that any royalty obligations should be no more than a portion of the profits for a component within the product that implements the patented technology) as the appropriate methodology for determining FRAND standard essential patent (“SEP”) royalties. Using this principle, the royalty accrual on our products is based on the value of the patented technology in the chipset, representing the SSU that implements the technology, and not on the entire value of the end-product. The cumulative effect of these legal changes to the licensing landscape, combined with supportive legislative initiatives and broad industry support for the SSU principle, at the time of the expiry of one of our significant legacy IP licenses, prompted management to reassess its contingent royalty obligation estimate during the fourth quarter of the year ended December 31, 2016. The use of the SSU principle as the basis to determine the estimate, as opposed to value of end-product, resulted in a reduction of $13.0 million to our estimated royalty obligation effective October 1, 2016. |
Market development costs | Market development costs Market development costs are charged to sales and marketing expense to the extent that the benefit is separable from the revenue transaction and the fair value of that benefit is determinable. To the extent that such costs either do not provide a separable benefit, or the fair value of the benefit cannot be reliably estimated, such amounts are recorded as a reduction of revenue. |
Income taxes | Income taxes Income taxes are accounted for using the asset and liability method. Deferred income tax assets and liabilities are based on temporary differences (differences between the accounting basis and the tax basis of the assets and liabilities), non-capital loss, capital loss, and tax credits carry-forwards are measured using the enacted tax rates and laws expected to apply when these differences reverse. Deferred tax benefits, including non-capital loss, capital loss, and tax credits carry-forwards, are recognized to the extent that realization of such benefits is considered more likely than not. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period that enactment occurs. We include interest and penalties related to income taxes, including unrecognized tax benefits, in Income tax expense. Liabilities for uncertain tax positions are recorded based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. We regularly assess the potential outcomes of examinations by tax authorities in determining the adequacy of our provision for income taxes. We continually assess the likelihood and amount of potential adjustments and adjust the income tax provision, income taxes payable and deferred taxes in the period in which the facts that give rise to a revision become known. We recognize the tax effects related to share-based payments at settlement or expiration in Income tax expense . |
Stock-based compensation and other stock-based payments | Stock-based compensation and other stock-based payments Stock options and restricted share units granted to the company’s key officers, directors and employees are accounted for using the fair value-based method. Under this method, compensation cost for stock options is measured at fair value at the date of grant using the Black-Scholes valuation model, and is expensed over the awards' vesting period using the straight-line method. Any consideration paid by plan participants on the exercise of stock options or the purchase of shares is credited to common stock together with any related stock-based compensation expense. Compensation cost for restricted share units is measured at fair value at the date of grant which is the market price of the underlying security, and is expensed over the awards' vesting period using the straight-line method. Compensation cost for performance-based restricted share units is measured using a Monte Carlo valuation model. In the third quarter of 2016, we early adopted ASU 2016-09 and elected to make an entity-wide election to account for forfeitures in compensation expense when they occur. The application of this election did not have a material impact on our financial statements. |
Earnings (loss) per common share | Earnings (loss) per common share Basic earnings (loss) per share is computed by dividing net earnings (loss) for the period by the weighted average number of company common shares outstanding during the reporting period. Diluted earnings (loss) per share is computed using the treasury stock method. When the effect of options and other securities convertible into common shares is anti-dilutive, including when the company has incurred a loss for the period, basic and diluted earnings (loss) per share are the same. Under the treasury stock method, the number of dilutive shares, if any, is determined by dividing the average market price of shares for the period into the net proceeds of in-the-money options. |
Translation of foreign currencies | Translation of foreign currencies Our functional and reporting currency is the U.S. dollar. Revenue and expense items denominated in foreign currencies are translated at exchange rates prevailing during the period. Monetary assets and liabilities denominated in foreign currencies are translated at the period-end exchange rates. Non-monetary assets and liabilities are translated at exchange rates in effect when the assets are acquired or the obligations are incurred. Foreign exchange gains and losses are reflected in Net earnings (loss) for the period. We have foreign subsidiaries that are considered self-contained and integrated within their foreign jurisdiction, and accordingly, use the respective local currency as their functional currency. The assets and liabilities of the foreign subsidiaries, including goodwill and fair value adjustments arising on acquisition, are translated at exchange rates at the balance sheet dates, equity is translated at historical rates, and revenue and expenses are translated at exchange rates prevailing during the period. The foreign exchange gains and losses arising from the translation are reported as a component of other comprehensive income (loss), as presented in note 21, Accumulated other comprehensive loss . |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents include cash and short-term deposits with original maturities of three months or less. The carrying amounts approximate fair value due to the short-term maturities of these instruments. |
Allowance for doubtful accounts receivable | Allowance for doubtful accounts receivable We maintain an allowance for our accounts receivable for estimated losses that may result from our customers’ inability to pay. We determine the amount of the allowance by analyzing known uncollectible accounts, aged receivables, economic conditions, historical losses, insured amounts, if any, and changes in customer payment cycles and credit-worthiness. Amounts later determined and specifically identified to be uncollectible are charged against this allowance. If the financial condition of any of our customers deteriorates resulting in an impairment of their ability to make payments, we may increase our allowance. |
Financing Receivables | Financing receivables We lease certain hardware devices to a small number of hardware distributors under sales-type leases which have terms ranging from two to four years and bear interest at 2%. We evaluate the credit quality of our financing receivables on an ongoing basis utilizing an aging of the accounts and write-offs, customer collection experience, the customer’s financial condition, known risk characteristics impacting the respective customer base, and other available economic conditions, to determine the appropriate allowance. |
Derivatives | Derivatives Derivatives, such as foreign currency forward contracts, may be used to hedge the foreign exchange risk on cash flows from commitments denominated in a foreign currency. Derivatives are recorded in Accounts receivable or Accounts payable and accrued liabilities and measured at fair value at each balance sheet date. Any resulting gains and losses from changes in the fair value are recorded in Foreign exchange gain (loss) . |
Inventories | Inventories Inventories consist of electronic components and finished goods and are valued at the lower of cost or estimable realizable value, determined on a first-in-first-out basis. Cost is defined as all costs that relate to bringing the inventory to its present condition and location under normal operating conditions. We review the components of our inventory and our inventory purchase commitments on a regular basis for excess and obsolete inventory based on estimated future usage and sales. Write-downs in inventory value or losses on inventory purchase commitments depend on various items, including factors related to customer demand, economic and competitive conditions, technological advances and new product introductions that vary from current expectations. We believe that the estimates used in calculating the inventory provision are reasonable and properly reflect the risk of excess and obsolete inventory. If customer demands for our inventory are substantially less than our estimates, additional inventory write-downs may be required. |
Property and equipment | Property and equipment Property and equipment are stated at cost, less accumulated depreciation and amortization. We amortize our property and equipment on a straight-line basis over the following estimated economic lives: Furniture and fixtures 3-5 years Research and development equipment 3-10 years Production equipment 2-7 years Tooling 1.5-3 years Computer equipment 1-5 years Software 1-5 years Office equipment 3-5 years Monitoring equipment 3-5 years Network equipment 3-7 years Research and development equipment related amortization is included in research and development expense. Tooling, production, monitoring and certain network equipment related amortization is included in cost of goods sold. All other amortization is included in amortization expense. Leasehold improvements and leased vehicles are amortized on a straight-line basis over the lesser of their expected average service life or term of the lease. When we sell property and equipment, we net the historical cost less accumulated depreciation and amortization against the sale proceeds and include the difference in Other income . |
Intangible assets | Intangible assets The estimated useful life of intangible assets with definite lives is the period over which the assets are expected to contribute to our future cash flows. When determining the useful life, we consider the expected use of the asset, useful life of any related intangible asset, any legal, regulatory or contractual provisions that limit the useful life, any legal, regulatory, or contractual renewal or extension provisions without substantial costs or modifications to the existing terms and conditions, the effects of obsolescence, demand, competition and other economic factors, and the expected level of maintenance expenditures relative to the cost of the asset required to obtain future cash flows from the asset. We amortize our intangible assets on a straight-line basis over the following specific periods: Patents and trademarks — 3-5 years Licenses — over the shorter of the term of the license or an estimate of their useful life, ranging from three to ten years Intellectual property and customer relationships — 3-13 years Brand — over the estimated life In-process research and development — over the estimated life In-process research and development (“IPRD”) are intangible assets acquired as part of business combinations. Prior to their completion, IPRD are intangible assets with indefinite life and they are not amortized but subject to impairment test on an annual basis. Research and development related amortization is included in research and development expense. All other amortization is included in Amortization expense. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price of an acquired business over the fair value assigned to assets acquired and liabilities assumed in a business combination. Goodwill has an indefinite life, is not amortized, and is subject to a two-step impairment test on an annual basis. The first step compares the fair value of the reporting unit to its carrying amount, which includes the goodwill. When the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not to be impaired and the second step of the impairment test is unnecessary. If the carrying amount exceeds the implied fair value of the goodwill, the second step measures the amount of the impairment loss. If the carrying amount exceeds the fair value of the goodwill, an impairment loss is recognized equal to that excess. |
Impairment of long-lived assets | Impairment of long-lived assets Long-lived assets, including property and equipment, and intangible assets other than goodwill, are assessed for potential impairment when there is evidence that events or changes in circumstances indicate that the carrying amount of an asset may not be recovered. An impairment loss is recognized when the carrying amount of the long-lived asset is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Any required impairment loss is measured as the amount by which the carrying amount of a long-lived asset exceeds its fair value and is recorded as a reduction in the carrying value of the related asset and a charge to operating results. Intangible assets with indefinite lives are tested annually for impairment and in interim periods if certain events occur indicating that the carrying value of the intangible assets may be impaired. |
Comprehensive income (loss) | Comprehensive income (loss) Comprehensive income (loss) includes net earnings (loss) as well as changes in equity from other non-owner sources. The other changes in equity included in comprehensive income (loss) are comprised of foreign currency cumulative translation adjustments. |
Investment tax credits | Investment tax credits Investment tax credits are accounted for using the flow-through method whereby such credits are accounted for as a reduction of income tax expense in the period in which the credit arises. |
Comparative figures | Comparative figures Certain figures presented in the consolidated financial statements have been reclassified to conform to the current year presentation. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |
Contract with Customer, Asset and Liability [Table Text Block] | The following table provides the changes in contract balances: As at December 31, Change 2018 2017 Contract assets $ 1,953 $ 852 $ 1,101 Deferred revenue - current 6,213 7,275 (1,062 ) Deferred revenue - noncurrent 6,317 3,346 2,971 |
Schedule of amortization of the entity's property and equipment on straight-line basis over the estimated economic lives | We amortize our property and equipment on a straight-line basis over the following estimated economic lives: Furniture and fixtures 3-5 years Research and development equipment 3-10 years Production equipment 2-7 years Tooling 1.5-3 years Computer equipment 1-5 years Software 1-5 years Office equipment 3-5 years Monitoring equipment 3-5 years Network equipment 3-7 years |
Finite-Lived Intangible Assets | |
Schedule of the entity's amortization of intangible assets on a straight-line basis over the specified periods | We amortize our intangible assets on a straight-line basis over the following specific periods: Patents and trademarks — 3-5 years Licenses — over the shorter of the term of the license or an estimate of their useful life, ranging from three to ten years Intellectual property and customer relationships — 3-13 years Brand — over the estimated life In-process research and development — over the estimated life |
RECENTLY IMPLEMENTED ACCOUNTI_2
RECENTLY IMPLEMENTED ACCOUNTING STANDARDS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following tables summarize the effects of adopting the accounting standard on our Statement of Operations and Comprehensive Earnings (Loss): Year ended December 31, 2017 As previously reported Effect of adoption of ASC 606 As adjusted Revenue $ 692,077 $ (1,350 ) $ 690,727 Cost of sales 457,130 (642 ) 456,488 Sales and marketing 75,594 (459 ) 75,135 Research and development 83,361 (708 ) 82,653 Income tax expense 3,123 76 3,199 Basic net earnings per share (in dollars) $ 0.13 $ 0.01 $ 0.14 Diluted earnings per share - (in dollars) 0.13 0.01 0.14 Year ended December 31, 2016 As previously reported Effect of adoption of ASC 606 As adjusted Revenue $ 615,607 $ (592 ) $ 615,015 Cost of sales 397,864 (140 ) 397,724 Sales and marketing 64,242 (372 ) 63,870 Research and development 73,077 (402 ) 72,675 Income tax expense 4,310 61 4,371 Basic net earnings per share (in dollars) $ 0.48 $ 0.01 $ 0.49 Diluted earnings per share - (in dollars) 0.48 0.01 0.48 The following table summarizes the effects of adopting the accounting standard on our Balance Sheet: As of December 31, 2017 As previously reported Effect of adoption of ASC 606 As adjusted Assets Accounts receivable $ 168,503 $ 4,551 $ 173,054 Inventories 53,026 117 53,143 Prepaids and other 8,006 215 8,221 Other assets 12,058 655 12,713 Liabilities Accounts payable and accrued liabilities 172,395 2,972 175,367 Deferred revenue 5,455 1,820 7,275 Deferred income tax liability 7,702 143 7,845 Equity Retained earnings 16,899 603 17,502 |
NUMEREX CORP (Tables)
NUMEREX CORP (Tables) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Business Combinations [Abstract] | |||
Schedule of Business Acquisition, Considerations [Table Text Block] | Total consideration for the acquisition is as follows: Issuance of common shares $ 77,346 Debt extinguishment 20,155 $ 97,501 | Total consideration for the acquisition is as follows: Cash $ 7,752 Contingent consideration 1,375 $ 9,127 | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table summarizes the final values assigned to the assets acquired and liabilities assumed at the acquisition date: Cash $ 1,430 Deferred income tax asset 1,049 Property and equipment 7,244 Identifiable intangible assets 45,890 Goodwill 51,658 Other working capital (8,623 ) Long-term obligations (1,147 ) Fair value of net assets acquired $ 97,501 | The following table summarizes the final values assigned to the assets acquired at the acquisition date: Assets acquired Inventory $ 604 Property and equipment 175 Identifiable intangible assets 1,160 Goodwill 1,206 Fair value of net assets acquired $ 3,145 | The following table summarizes the values assigned to the assets acquired and liabilities assumed at the acquisition date: Assets acquired Cash $ 3,563 Accounts receivable 237 Other assets 111 Identifiable intangible assets 2,540 Goodwill 920 $ 7,371 Liabilities assumed Accounts payable and accrued liabilities $ 392 Deferred income taxes 534 Fair value of net assets acquired $ 6,445 The following table summarizes the values assigned to the assets acquired and liabilities assumed at the acquisition date: Assets acquired Cash $ 1,852 Accounts receivable 1,754 Inventory 2,375 Other assets 124 Identifiable intangible assets 3,926 Goodwill 1,782 $ 11,813 Liabilities assumed Accounts payable and accrued liabilities $ 1,458 Deferred income taxes 1,228 Fair value of net assets acquired $ 9,127 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The following table provides the components of the identifiable intangible assets acquired that are subject to amortization: Estimated useful life Amount Customer relationships 9 years $ 26,390 Existing technology 3 years 10,220 Brand 13 years 9,280 $ 45,890 | The following table provides the components of the identifiable intangible assets acquired: Estimated useful life Amount Customer Relationships 5 years $ 640 Existing Technology 3 years 410 Backlog 11 months 110 $ 1,160 | The following table provides the components of the identifiable intangible assets acquired: Estimated useful life Amount Customer relationships 3.5 years $ 2,090 Existing technology 4 years 450 $ 2,540 The following table provides the components of the identifiable intangible assets acquired: Estimated useful life Amount Customer relationships 5 years $ 2,640 Existing technology 4 years 973 In-process research and development 313 $ 3,926 |
Business Acquisition, Pro Forma Information [Table Text Block] | The following table presents the unaudited pro forma results for the year ended December 31, 2017 and 2016. The pro forma financial information combines the results of operations of Sierra Wireless, Inc. and Numerex as though the businesses had been combined as of the beginning of fiscal 2016. The pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of fiscal 2016. The unaudited pro forma financial information presented includes amortization charges for acquired tangible and intangible assets, and related tax effects. Year ended December 31, 2017 2016 Pro forma information Revenue $ 747,719 $ 686,252 Loss from operations (8,973 ) (5,205 ) Net loss (3,577 ) (7,334 ) Basic and diluted loss per share (in dollars) $ (0.10 ) $ (0.21 ) |
GNSS BUSINESS (Tables)
GNSS BUSINESS (Tables) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | |||
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The following table provides the components of the identifiable intangible assets acquired that are subject to amortization: Estimated useful life Amount Customer relationships 9 years $ 26,390 Existing technology 3 years 10,220 Brand 13 years 9,280 $ 45,890 | The following table provides the components of the identifiable intangible assets acquired: Estimated useful life Amount Customer Relationships 5 years $ 640 Existing Technology 3 years 410 Backlog 11 months 110 $ 1,160 | The following table provides the components of the identifiable intangible assets acquired: Estimated useful life Amount Customer relationships 3.5 years $ 2,090 Existing technology 4 years 450 $ 2,540 The following table provides the components of the identifiable intangible assets acquired: Estimated useful life Amount Customer relationships 5 years $ 2,640 Existing technology 4 years 973 In-process research and development 313 $ 3,926 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table summarizes the final values assigned to the assets acquired and liabilities assumed at the acquisition date: Cash $ 1,430 Deferred income tax asset 1,049 Property and equipment 7,244 Identifiable intangible assets 45,890 Goodwill 51,658 Other working capital (8,623 ) Long-term obligations (1,147 ) Fair value of net assets acquired $ 97,501 | The following table summarizes the final values assigned to the assets acquired at the acquisition date: Assets acquired Inventory $ 604 Property and equipment 175 Identifiable intangible assets 1,160 Goodwill 1,206 Fair value of net assets acquired $ 3,145 | The following table summarizes the values assigned to the assets acquired and liabilities assumed at the acquisition date: Assets acquired Cash $ 3,563 Accounts receivable 237 Other assets 111 Identifiable intangible assets 2,540 Goodwill 920 $ 7,371 Liabilities assumed Accounts payable and accrued liabilities $ 392 Deferred income taxes 534 Fair value of net assets acquired $ 6,445 The following table summarizes the values assigned to the assets acquired and liabilities assumed at the acquisition date: Assets acquired Cash $ 1,852 Accounts receivable 1,754 Inventory 2,375 Other assets 124 Identifiable intangible assets 3,926 Goodwill 1,782 $ 11,813 Liabilities assumed Accounts payable and accrued liabilities $ 1,458 Deferred income taxes 1,228 Fair value of net assets acquired $ 9,127 |
BLUE CREATION BLUE CREATION (Ta
BLUE CREATION BLUE CREATION (Tables) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Business Combinations [Abstract] | |||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table summarizes the final values assigned to the assets acquired and liabilities assumed at the acquisition date: Cash $ 1,430 Deferred income tax asset 1,049 Property and equipment 7,244 Identifiable intangible assets 45,890 Goodwill 51,658 Other working capital (8,623 ) Long-term obligations (1,147 ) Fair value of net assets acquired $ 97,501 | The following table summarizes the final values assigned to the assets acquired at the acquisition date: Assets acquired Inventory $ 604 Property and equipment 175 Identifiable intangible assets 1,160 Goodwill 1,206 Fair value of net assets acquired $ 3,145 | The following table summarizes the values assigned to the assets acquired and liabilities assumed at the acquisition date: Assets acquired Cash $ 3,563 Accounts receivable 237 Other assets 111 Identifiable intangible assets 2,540 Goodwill 920 $ 7,371 Liabilities assumed Accounts payable and accrued liabilities $ 392 Deferred income taxes 534 Fair value of net assets acquired $ 6,445 The following table summarizes the values assigned to the assets acquired and liabilities assumed at the acquisition date: Assets acquired Cash $ 1,852 Accounts receivable 1,754 Inventory 2,375 Other assets 124 Identifiable intangible assets 3,926 Goodwill 1,782 $ 11,813 Liabilities assumed Accounts payable and accrued liabilities $ 1,458 Deferred income taxes 1,228 Fair value of net assets acquired $ 9,127 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The following table provides the components of the identifiable intangible assets acquired that are subject to amortization: Estimated useful life Amount Customer relationships 9 years $ 26,390 Existing technology 3 years 10,220 Brand 13 years 9,280 $ 45,890 | The following table provides the components of the identifiable intangible assets acquired: Estimated useful life Amount Customer Relationships 5 years $ 640 Existing Technology 3 years 410 Backlog 11 months 110 $ 1,160 | The following table provides the components of the identifiable intangible assets acquired: Estimated useful life Amount Customer relationships 3.5 years $ 2,090 Existing technology 4 years 450 $ 2,540 The following table provides the components of the identifiable intangible assets acquired: Estimated useful life Amount Customer relationships 5 years $ 2,640 Existing technology 4 years 973 In-process research and development 313 $ 3,926 |
GENX MOBILE INC GENX MOBILE I_2
GENX MOBILE INC GENX MOBILE INC (Tables) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Business Combinations [Abstract] | |||
Schedule of Business Acquisition, Considerations [Table Text Block] | Total consideration for the acquisition is as follows: Issuance of common shares $ 77,346 Debt extinguishment 20,155 $ 97,501 | Total consideration for the acquisition is as follows: Cash $ 7,752 Contingent consideration 1,375 $ 9,127 | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table summarizes the final values assigned to the assets acquired and liabilities assumed at the acquisition date: Cash $ 1,430 Deferred income tax asset 1,049 Property and equipment 7,244 Identifiable intangible assets 45,890 Goodwill 51,658 Other working capital (8,623 ) Long-term obligations (1,147 ) Fair value of net assets acquired $ 97,501 | The following table summarizes the final values assigned to the assets acquired at the acquisition date: Assets acquired Inventory $ 604 Property and equipment 175 Identifiable intangible assets 1,160 Goodwill 1,206 Fair value of net assets acquired $ 3,145 | The following table summarizes the values assigned to the assets acquired and liabilities assumed at the acquisition date: Assets acquired Cash $ 3,563 Accounts receivable 237 Other assets 111 Identifiable intangible assets 2,540 Goodwill 920 $ 7,371 Liabilities assumed Accounts payable and accrued liabilities $ 392 Deferred income taxes 534 Fair value of net assets acquired $ 6,445 The following table summarizes the values assigned to the assets acquired and liabilities assumed at the acquisition date: Assets acquired Cash $ 1,852 Accounts receivable 1,754 Inventory 2,375 Other assets 124 Identifiable intangible assets 3,926 Goodwill 1,782 $ 11,813 Liabilities assumed Accounts payable and accrued liabilities $ 1,458 Deferred income taxes 1,228 Fair value of net assets acquired $ 9,127 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The following table provides the components of the identifiable intangible assets acquired that are subject to amortization: Estimated useful life Amount Customer relationships 9 years $ 26,390 Existing technology 3 years 10,220 Brand 13 years 9,280 $ 45,890 | The following table provides the components of the identifiable intangible assets acquired: Estimated useful life Amount Customer Relationships 5 years $ 640 Existing Technology 3 years 410 Backlog 11 months 110 $ 1,160 | The following table provides the components of the identifiable intangible assets acquired: Estimated useful life Amount Customer relationships 3.5 years $ 2,090 Existing technology 4 years 450 $ 2,540 The following table provides the components of the identifiable intangible assets acquired: Estimated useful life Amount Customer relationships 5 years $ 2,640 Existing technology 4 years 973 In-process research and development 313 $ 3,926 |
SEGMENTED INFORMATION (Tables)
SEGMENTED INFORMATION (Tables) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Schedule of revenue and gross margin by segment | REVENUE AND GROSS MARGIN BY SEGMENT Year ended December 31, 2018 OEM Solutions Enterprise Solutions IoT Services Total Revenue $ 583,214 $ 119,927 $ 90,461 $ 793,602 Cost of sales 417,645 58,796 52,590 529,031 Gross margin $ 165,569 $ 61,131 $ 37,871 $ 264,571 Gross margin % 28.4 % 51.0 % 41.9 % 33.3 % Expenses 282,846 Loss from operations $ (18,275 ) Total assets $ 683,916 | Year ended December 31, 2017 OEM Solutions Enterprise Solutions IoT Services Total Revenue $ 554,537 $ 101,535 $ 34,655 $ 690,727 Cost of sales 384,230 53,014 19,244 456,488 Gross margin $ 170,307 $ 48,521 $ 15,411 $ 234,239 Gross margin % 30.7 % 47.8 % 44.5 % 33.9 % Expenses 234,139 Earnings from operations $ 100 Total assets $ 694,644 | Year ended December 31, 2016 OEM Solutions Enterprise Solutions IoT Services Total Revenue $ 515,925 $ 71,486 $ 27,604 $ 615,015 Cost of sales 349,781 31,537 16,406 $ 397,724 Gross margin $ 166,144 $ 39,949 $ 11,198 $ 217,291 Gross margin % 32.2 % 55.9 % 40.6 % 35.3 % Expenses 195,621 Earnings from operations $ 21,670 Total assets $ 581,457 |
Schedule of revenue by geographical region | REVENUE BY GEOGRAPHICAL REGION 2018 2017 2016 Americas $ 314,169 $ 227,905 $ 213,633 Europe, Middle East and Africa 167,812 168,400 141,932 Asia-Pacific 311,621 294,422 259,450 $ 793,602 $ 690,727 $ 615,015 | ||
Schedule of property and equipment by geographical region | PROPERTY AND EQUIPMENT BY GEOGRAPHICAL REGION 2018 2017 Americas $ 26,045 $ 26,608 Europe, Middle East and Africa 9,027 11,136 Asia-Pacific 4,770 5,233 $ 39,842 $ 42,977 |
RESEARCH AND DEVELOPMENT (Table
RESEARCH AND DEVELOPMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Research and Development [Abstract] | |
Schedule of components of research and development costs | The components of research and development costs consist of the following: 2018 2017 2016 Gross research and development $ 94,352 $ 83,538 $ 73,293 Government tax credits (645 ) (885 ) (618 ) $ 93,707 $ 82,653 $ 72,675 |
OTHER INCOME (EXPENSE) (Tables)
OTHER INCOME (EXPENSE) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Income and Expenses [Abstract] | |
Schedule of components of other income (expense) | The components of other income for the years ended December 31 were as follows: 2018 2017 2016 Interest income $ 253 $ 245 $ 163 Interest expense (156 ) (159 ) (71 ) Other (46 ) (19 ) (9 ) $ 51 $ 67 $ 83 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of earnings (loss) before income taxes | The components of earnings (loss) before income taxes consist of the following: 2018 2017 As adjusted 2016 As adjusted Canadian $ 10,880 $ 7,205 $ 15,480 Foreign (34,574 ) 512 4,537 Earnings (loss) before income taxes $ (23,694 ) $ 7,717 $ 20,017 |
Schedule of income tax expense (recovery) | The income tax expense (recovery) consists of: 2018 2017 As adjusted 2016 As adjusted Canadian: Current $ 101 $ 28 $ (287 ) Deferred (4,508 ) 1,665 401 $ (4,407 ) $ 1,693 $ 114 Foreign: Current $ 2,500 $ 2,347 $ 7,304 Deferred 2,823 (841 ) (3,047 ) $ 5,323 $ 1,506 $ 4,257 Total: Current $ 2,601 $ 2,375 $ 7,017 Deferred (1,685 ) 824 (2,646 ) $ 916 $ 3,199 $ 4,371 |
Schedule of reconciliation of income taxes calculated at the statutory rate to the actual income tax provision | The reconciliation of income taxes calculated at the statutory rate to the actual income tax provision for the years ended December 31 was as follows: 2018 2017 As adjusted 2016 As adjusted Income tax expense (recovery) at Canadian statutory income tax rates of 26.99% (2017 - 26.01%; 2017 - 26.01%) $ (6,330 ) $ 1,979 $ 5,183 Increase (decrease) in income taxes for: Permanent and other differences 2,173 (1,452 ) (2,192 ) Change in statutory/foreign tax rates and foreign exchange rates 4,238 1,049 11,581 Change in valuation allowance 1,041 1,571 (11,403 ) Stock-based compensation expense 1,973 1,633 1,039 Adjustment to prior years (2,179 ) (1,581 ) 163 Income tax expense (recovery) $ 916 $ 3,199 $ 4,371 |
Schedule of tax effects of temporary differences that give rise to significant future tax assets and future tax liabilities | The tax effects of temporary differences that give rise to significant deferred tax assets and deferred tax liabilities were as follows at December 31: 2018 2017 As adjusted Deferred income tax assets (liabilities) Property and equipment $ 1,289 $ 1,470 Non capital loss carry-forwards 89,499 87,854 Capital loss carry-forwards 3,195 3,166 Scientific research and development expenses and credits 20,004 23,829 Reserves and other 16,044 14,784 Investments (801 ) (471 ) Acquired intangibles (10,022 ) (13,761 ) 119,208 116,871 Valuation allowance 113,560 112,519 $ 5,648 $ 4,352 2018 2017 As adjusted Classification: Assets Non-current $ 11,751 $ 12,197 Liabilities Non-current (6,103 ) (7,845 ) $ 5,648 $ 4,352 |
Schedule of reconciliation of the total amounts of unrecognized tax benefits | Below is a reconciliation of the total amounts of unrecognized tax benefits for the years ended December 31: 2018 2017 As adjusted Unrecognized tax benefits, beginning of year $ 4,418 $ 4,329 Increases — tax positions taken in prior periods 3 36 Increases — tax positions taken in current period — 61 Settlements and lapses of statute of limitations 61 (8 ) Unrecognized tax benefits, end of year $ 4,482 $ 4,418 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of stock-based compensation expense | Stock-based compensation expense: 2018 2017 2016 Cost of goods sold $ 491 $ 461 $ 420 Sales and marketing 2,784 2,503 1,714 Research and development 2,274 2,038 1,375 Administration 7,511 5,339 4,120 $ 13,060 $ 10,341 $ 7,629 Stock option plan 3,350 3,297 2,170 Restricted stock plan 9,710 7,044 5,459 $ 13,060 $ 10,341 $ 7,629 |
Schedule of fair value of options estimated on the date of grant using the Black-Scholes option pricing model | The fair value of share options was estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions: 2018 2017 2016 Risk-free interest rate 2.22 % 1.37 % 0.73 % Annual dividends per share Nil Nil Nil Expected stock price volatility 55 % 55 % 51 % Expected option life (in years) 4.0 4.0 4.0 Average fair value of options granted (in dollars) $7.02 $11.09 $4.40 |
Schedule of stock option activity | The following table presents stock option activity for the years ended December 31: Number of Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Options Cdn.$ U.S.$ In Years U.S.$ Outstanding, December 31, 2015 965,911 21.47 15.44 2.5 3,541 Granted 651,357 14.72 10.95 Exercised (231,704 ) 11.76 8.75 1,608 Forfeited (69,941 ) 19.25 14.32 Outstanding, December 31, 2016 1,315,623 19.65 14.61 2.9 4,687 Granted 685,936 32.16 25.58 Exercised (500,184 ) 14.91 11.86 6,997 Forfeited (37,894 ) 24.58 19.55 Outstanding, December 31, 2017 1,463,481 26.38 20.98 3.2 4,788 Granted 343,173 21.47 15.75 Exercised (221,262 ) 16.10 11.81 1,222 Forfeited (207,044 ) 34.24 25.10 Outstanding, December 31, 2018 1,378,348 26.79 19.64 2.8 822 |
Schedule of stock options outstanding and exercisable | The following table summarizes the stock options outstanding and exercisable at December 31, 2018: Options Outstanding Options Exercisable Range of Number of Weighted Average Remaining Option Life Weighted Average Exercise Price Number of Options Weighted Average Exercise Price Exercise Prices Options (years) Cdn.$ U.S.$ Exercisable Cdn.$ U.S.$ $10.26 - $14.53 U.S. $13.99 - $19.81 Cdn 275,467 2.1 14.28 10.47 153,085 14.28 10.47 $14.54 - $16.4 U.S. $19.82 - $22.37 Cdn 355,436 3.7 21.30 15.62 36,079 21.01 15.41 $16.41 - $24.61 U.S. $22.38 - $33.56 Cdn 390,558 2.9 31.18 22.87 192,812 30.81 22.59 $24.62 - $25.15 U.S. $33.57 - $34.30 Cdn 204,995 3.1 34.23 25.10 94,370 34.23 25.10 $25.16 - $32.29 U.S. $34.31 - $44.03 Cdn 151,892 1.4 40.98 30.05 135,787 41.45 30.40 1,378,348 2.8 26.79 19.64 612,133 28.99 21.26 |
Schedule of restricted stock unit activity | The following table summarizes the RSU activity for the years ended December 31: Number of Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Life Aggregate Intrinsic Value RSUs Cdn.$ U.S.$ In years U.S.$ Outstanding, December 31, 2015 778,233 25.08 18.04 1.8 12,219 Granted 354,517 15.08 11.21 Vested / settled (358,497 ) 19.57 14.56 4,477 Forfeited (28,279 ) 21.85 16.26 Outstanding, December 31, 2016 745,974 22.59 16.81 2.1 11,689 Granted 454,685 32.02 25.47 Vested / settled (284,888 ) 22.86 18.18 6,098 Forfeited (39,030 ) 21.10 16.77 Outstanding, December 31, 2017 876,741 26.80 21.31 2.1 17,919 Granted 754,452 23.78 17.44 Vested / settled (520,660 ) 25.69 18.84 8,876 Forfeited (64,258 ) 25.73 18.86 Outstanding, December 31, 2018 1,046,275 26.23 19.24 2.6 13,289 Outstanding – vested and not settled 117,557 Outstanding – unvested 928,718 Outstanding, December 31, 2018 1,046,275 |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation between basic and diluted earnings (loss) per share | The following table provides the reconciliation between basic and diluted earnings (loss) per share: 2018 2017 As adjusted 2016 As adjusted Net earnings (loss) $ (24,610 ) $ 4,518 $ 15,646 Weighted average shares used in computation of: Basic 36,019 32,356 32,032 Assumed conversion — 537 303 Diluted 36,019 32,893 32,335 Net earnings (loss) per share (in dollars): Basic $ (0.68 ) $ 0.14 $ 0.49 Diluted (0.68 ) 0.14 0.48 |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Schedule of components of accounts receivable | The components of accounts receivable at December 31 were as follows: 2018 2017 As adjusted Trade receivables $ 154,593 $ 142,514 Less: allowance for doubtful accounts (2,968 ) (1,827 ) 151,625 140,687 Sales taxes receivable 3,016 3,120 R&D tax credits 3,783 4,408 Financing receivables 1,876 1,442 Contract assets (note 2(c) ) 1,953 852 Other receivables 9,472 22,545 $ 171,725 $ 173,054 |
Schedule of movement in the allowance for doubtful accounts | The movement in the allowance for doubtful accounts during the years ended December 31 were as follows: 2018 2017 2016 Balance, beginning of year $ 1,827 $ 2,486 $ 2,088 Bad debt expense (recovery) 1,159 (535 ) 383 Write-offs and settlements 9 (194 ) 15 Foreign exchange (27 ) 70 — $ 2,968 $ 1,827 $ 2,486 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The components of inventories at December 31 were as follows: 2018 2017 As adjusted Electronic components $ 28,849 $ 32,753 Finished goods 21,930 20,390 $ 50,779 $ 53,143 |
PREPAIDS AND OTHER (Tables)
PREPAIDS AND OTHER (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of components of prepaids and other | The components of prepaids and other at December 31 were as follows: 2018 2017 As adjusted Inventory advances $ 3,851 $ 93 Insurance and licenses 846 608 Deposits 1,921 2,161 Contract acquisition and fulfillment costs 880 1,053 Other 4,205 4,306 $ 11,703 $ 8,221 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | ||
Schedule of components of property and equipment | The components of property and equipment at December 31 were as follows: 2018 Cost Accumulated amortization Net book value Furniture and fixtures $ 3,089 $ 1,634 $ 1,455 Research and development equipment 38,761 28,361 10,400 Production equipment and tooling 43,860 26,427 17,433 Computer equipment 9,099 7,464 1,635 Software 8,180 6,287 1,893 Leasehold improvements 6,754 4,489 2,265 Leased vehicles 983 688 295 Office equipment 1,533 1,162 371 Monitoring equipment 1,821 905 916 Network equipment 6,262 3,083 3,179 $ 120,342 $ 80,500 $ 39,842 | 2017 Cost Accumulated amortization Net book value Furniture and fixtures $ 2,495 $ 1,477 $ 1,018 Research and development equipment 35,589 25,831 9,758 Production equipment and tooling 39,426 23,229 16,197 Computer equipment 9,611 7,279 2,332 Software 6,859 4,346 2,513 Leasehold improvements 6,399 3,950 2,449 Leased vehicles 1,122 752 370 Office equipment 1,460 971 489 Monitoring equipment 3,881 106 3,775 Network equipment 5,503 1,427 4,076 $ 112,345 $ 69,368 $ 42,977 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Schedule of components of intangible assets | The components of intangible assets at December 31 were as follows: 2018 Cost Accumulated amortization Net book value Patents and trademarks $ 15,163 $ 13,328 $ 1,835 Licenses 50,740 49,112 1,628 Intellectual property 28,277 18,671 9,606 Customer relationships 118,741 61,993 56,748 Brand 14,854 2,536 12,318 In-process research and development 10,521 7,766 2,755 $ 238,296 $ 153,406 $ 84,890 | 2017 Cost Accumulated amortization Net book value Patents and trademarks $ 15,404 $ 12,077 $ 3,327 Licenses 51,859 50,434 1,425 Intellectual property 28,411 13,541 14,870 Customer relationships 124,706 53,627 71,079 Brand 15,153 1,318 13,835 In-process research and development 11,012 6,949 4,063 $ 246,545 $ 137,946 $ 108,599 |
Schedule of estimated annual amortization expense | Estimated annual amortization expense for the next 5 years ended December 31 are as follows: 2019 17,263 2020 13,605 2021 9,750 2022 8,699 2023 8,452 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in the carrying amount of goodwill | The changes in the carrying amount of goodwill for the years ended December 31 were as follows: 2018 2017 Balance at beginning of year $ 218,516 $ 154,114 Goodwill acquired (note 5 (b) and 5 (c) ) 1,016 51,848 Disposal of assets of a business unit (2,073 ) — Foreign currency translation adjustments (6,385 ) 12,554 $ 211,074 $ 218,516 OEM Solutions $ 107,268 $ 111,348 Enterprise Solutions 26,988 27,405 IoT Services 76,818 79,763 $ 211,074 $ 218,516 |
ACCOUNTS PAYABLE AND ACCRUED _2
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of components of accounts payable and accrued liabilities | The components of accounts payable and accrued liabilities at December 31 were as follows: 2018 2017 As adjusted Trade payables and accruals $ 94,067 $ 94,775 Inventory commitment reserve 843 1,440 Accrued royalties 14,348 14,548 Accrued payroll and related liabilities 18,115 17,572 Deferred rent 2,193 2,597 Professional services 6,702 4,153 Taxes payable (including sales taxes) 4,957 4,070 Product warranties (note 26(b)(iii) ) 7,914 8,159 Sales credits 7,055 3,984 Restructuring liability 2,486 540 Other 25,540 23,529 $ 184,220 $ 175,367 |
LONG-TERM OBLIGATIONS (Tables)
LONG-TERM OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounts Payable and Accrued Liabilities, Noncurrent [Abstract] | |
Schedule of components of long-term obligations | 2018 2017 As adjusted Accrued royalties $ 28,181 $ 24,318 Deferred revenue 6,317 3,346 Other 8,752 8,973 $ 43,250 $ 36,637 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of components of accumulated other comprehensive loss, net of taxes | 2018 2017 Balance, beginning of period $ (2,476 ) $ (14,426 ) Foreign currency translation adjustments (4,226 ) 5,416 Gain (loss) on long term intercompany balances (2,444 ) 6,534 Balance, end of period $ (9,146 ) $ (2,476 ) |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | The following table summarizes supplemental cash flow information and non-cash activities: 2018 2017 2016 Net income taxes paid $ 1,105 $ 6,100 $ 4,181 Interest paid 118 105 127 Non-cash property and equipment additions 231 — 200 Non-cash additions funded by obligation under capital leases 246 143 544 Non-cash additions related to asset retirement obligations — 75 520 As at December 31, 2018, restricted cash of $221 is held in escrow related to certain vendor obligations. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the statement of financial position that sum to the total of the same such amounts shown in the statement of cash flows: 2018 2017 2016 Cash and cash equivalents $ 89,076 $ 65,003 $ 102,772 Restricted cash 221 221 — Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 89,297 $ 65,224 $ 102,772 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of minimum future payments under operating leases for the entity's continuing operations | We have entered into operating leases for property and equipment. The minimum future payments under various operating leases for our continuing operations in each of the years ended December 31 is as follows: 2019 7,557 2020 6,617 2021 4,986 2022 1,619 2023 674 Subsequent years 4 $ 21,457 |
Schedule of the changes in the liability for product warranties | 2018 2017 As adjusted Balance, beginning of year $ 8,159 $ 7,637 Effect of adoption of ASC 606 — (76 ) 8,159 7,561 Provisions 3,351 4,431 Expenditures (3,596 ) (3,833 ) Balance, end of year $ 7,914 $ 8,159 |
NATURE OF OPERATIONS (Details)
NATURE OF OPERATIONS (Details) | 12 Months Ended |
Dec. 31, 2018segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 3 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Schedule of Property and Equipment Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Furniture and fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 3 years |
Furniture and fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 5 years |
Research and development equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 3 years |
Research and development equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 10 years |
Production equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 2 years |
Production equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 7 years |
Tooling [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 1 year 6 months |
Tooling [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 3 years |
Computer equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 1 year |
Computer equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 5 years |
Software [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 1 year |
Software [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 5 years |
Office equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 3 years |
Office equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 5 years |
Monitoring Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 3 years |
Monitoring Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 5 years |
Network equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 3 years |
Network equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 7 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Schedule of Intangible Assets Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Patents and trademarks [Member] | Minimum [Member] | |
Intangible assets | |
Estimated useful life | 3 years |
Patents and trademarks [Member] | Maximum [Member] | |
Intangible assets | |
Estimated useful life | 5 years |
Licenses [Member] | Minimum [Member] | |
Intangible assets | |
Estimated useful life | 3 years |
Licenses [Member] | Maximum [Member] | |
Intangible assets | |
Estimated useful life | 10 years |
Intellectual property and customer relationships [Member] | Minimum [Member] | |
Intangible assets | |
Estimated useful life | 3 years |
Intellectual property and customer relationships [Member] | Maximum [Member] | |
Intangible assets | |
Estimated useful life | 13 years |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Royalty Obligation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Liabilities Disclosure [Abstract] | |||
Increase (Decrease) in Accrued Royalty Obligation | $ 0 | $ 0 | $ 13,045 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revenue Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | ||
Contract assets | $ 1,953 | $ 852 |
Deferred revenue - current | 6,213 | 7,275 |
Deferred revenue - noncurrent | 6,317 | 3,346 |
Change in contract assets | 1,101 | |
Change in deferred revenue - current | (1,062) | |
Change in deferred revenue - noncurrent | 2,971 | |
Deferred revenue recognized in revenue | $ 6,073 | $ 5,009 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revenue Recognition - Performance Obligation (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Accounting Policies [Abstract] | |
Remaining performance obligation to be recognized | $ 20,820 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Accounting Policies [Abstract] | |
Remaining performance obligation to be recognized, percentage | 44.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation to be recognized, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Accounting Policies [Abstract] | |
Remaining performance obligation to be recognized, percentage | 29.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation to be recognized, period | 2 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Accounting Policies [Abstract] | |
Remaining performance obligation to be recognized, percentage | 27.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation to be recognized, period |
RECENTLY IMPLEMENTED ACCOUNTI_3
RECENTLY IMPLEMENTED ACCOUNTING STANDARDS Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Revenue | $ 793,602 | $ 690,727 | $ 615,015 |
Cost of sales | 529,031 | 456,488 | 397,724 |
Sales and marketing | 88,587 | 75,135 | 63,870 |
Research and development | 93,707 | 82,653 | 72,675 |
Income tax expense | $ 916 | $ 3,199 | $ 4,371 |
Basic net earnings per share (in dollars) | $ (0.68) | $ 0.14 | $ 0.49 |
Diluted earnings per share - (in dollars) | $ (0.68) | $ 0.14 | $ 0.48 |
Assets | |||
Accounts receivable | $ 171,725 | $ 173,054 | |
Inventories | 50,779 | 53,143 | |
Prepaid Expense and Other Assets, Current | 11,703 | 8,221 | |
Other assets | 12,855 | 12,713 | |
Liabilities | |||
Accounts payable and accrued liabilities | 184,220 | 175,367 | |
Deferred revenue - current | 6,213 | 7,275 | |
Deferred income tax liability | 6,103 | 7,845 | |
Equity [Abstract] | |||
Retained earnings (deficit) | $ (8,295) | 17,502 | |
As previously reported | |||
Income Statement [Abstract] | |||
Revenue | 692,077 | $ 615,607 | |
Cost of sales | 457,130 | 397,864 | |
Sales and marketing | 75,594 | 64,242 | |
Research and development | 83,361 | 73,077 | |
Income tax expense | $ 3,123 | $ 4,310 | |
Basic net earnings per share (in dollars) | $ 0.13 | $ 0.48 | |
Diluted earnings per share - (in dollars) | $ 0.13 | $ 0.48 | |
Assets | |||
Accounts receivable | $ 168,503 | ||
Inventories | 53,026 | ||
Prepaid Expense and Other Assets, Current | 8,006 | ||
Other assets | 12,058 | ||
Liabilities | |||
Accounts payable and accrued liabilities | 172,395 | ||
Deferred revenue - current | 5,455 | ||
Deferred income tax liability | 7,702 | ||
Equity [Abstract] | |||
Retained earnings (deficit) | 16,899 | ||
Accounting Standards Update 2014-09 | Effect of adoption of ASC 606 | |||
Income Statement [Abstract] | |||
Revenue | (1,350) | $ (592) | |
Cost of sales | (642) | (140) | |
Sales and marketing | (459) | (372) | |
Research and development | (708) | (402) | |
Income tax expense | $ 76 | $ 61 | |
Basic net earnings per share (in dollars) | $ 0.01 | $ 0.01 | |
Diluted earnings per share - (in dollars) | $ 0.01 | $ 0.01 | |
Assets | |||
Accounts receivable | $ 4,551 | ||
Inventories | 117 | ||
Prepaid Expense and Other Assets, Current | 215 | ||
Other assets | 655 | ||
Liabilities | |||
Accounts payable and accrued liabilities | 2,972 | ||
Deferred revenue - current | 1,820 | ||
Deferred income tax liability | 143 | ||
Equity [Abstract] | |||
Retained earnings (deficit) | $ 603 |
DISPOSAL OF REMOTE TANK MONIT_2
DISPOSAL OF REMOTE TANK MONITORING BUSINESS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from Divestiture of Businesses | $ 5,000 | $ 0 | $ 0 |
Loss on disposal of iTank business (note 5(a)) | 2,064 | $ 0 | $ 0 |
iTank Remote Monitoring Business [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from Divestiture of Businesses | 6,000 | ||
Cash consideration received in business disposal | 5,000 | ||
Cash consideration held in escrow | 1,000 | ||
Amount in escrow, held with contingency | 800 | ||
Remaining escrow, held to secure purchaser right of indemnification | 200 | ||
Loss on disposal of iTank business (note 5(a)) | 2,100 | ||
Transaction related costs | 200 | ||
Goodwill de-recognized in disposal | $ 2,100 |
NUMEREX CORP (Details)
NUMEREX CORP (Details) - USD ($) $ in Thousands | Dec. 07, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Issuance of common shares | $ 77,213 | |||
Goodwill, Acquired During Period | $ 1,016 | 51,848 | ||
Business Combination, Consideration Transferred | $ 97,501 | |||
Goodwill | 211,074 | 218,516 | $ 154,114 | |
NUMEREX [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 3,580,832 | |||
Business Acquisition, Pro Forma Revenue | $ 747,719 | $ 686,252 | ||
Payments to Acquire Business Six, Net of Cash Acquired | $ 20,155 | |||
Finite-lived Intangible Assets Acquired | $ 45,890 | |||
Cash Acquired from Acquisition | $ 1,430 | |||
Business Acquisition, Effective Date of Acquisition | Dec. 7, 2017 | |||
Issuance of common shares | $ 77,346 | |||
Goodwill, Acquired During Period | 51,700 | |||
Deferred income tax | 1,049 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 7,244 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 45,890 | |||
Goodwill | 51,658 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities | (1,147) | |||
Other working capital acquired from acquisition | (8,623) | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 97,501 | |||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 4,000 | |||
NUMEREX [Member] | Customer Relationships [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite-lived Intangible Assets Acquired | $ 26,390 | |||
Finite-Lived Intangible Asset, Useful Life | 9 years | |||
NUMEREX [Member] | Brand [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite-lived Intangible Assets Acquired | $ 9,280 | |||
Finite-Lived Intangible Asset, Useful Life | 13 years | |||
NUMEREX [Member] | Existing Technology [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite-lived Intangible Assets Acquired | $ 10,220 | |||
Finite-Lived Intangible Asset, Useful Life | 3 years |
NUMEREX CORP Schedule of Pro-Fo
NUMEREX CORP Schedule of Pro-Forma Information (Details) - NUMEREX [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | ||
Business Acquisition, Pro Forma Revenue | $ 747,719 | $ 686,252 |
Business Acquisition, Pro Forma Loss from operations | (8,973) | (5,205) |
Business Acquisition, Pro Forma Net Income (Loss) | $ (3,577) | $ (7,334) |
Business Acquisition Pro Forma Earnings Per Share Basic and Diluted | $ (0.10) | $ (0.21) |
GNSS BUSINESS (Details)
GNSS BUSINESS (Details) - USD ($) $ in Thousands | Dec. 07, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 211,074 | $ 218,516 | $ 154,114 | ||
GNSSGlobalTop [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 3,400 | ||||
Finite-lived Intangible Assets Acquired | $ 1,160 | ||||
Inventory | 604 | ||||
Payments to Acquire Businesses, Gross | $ 3,100 | ||||
Business Acquisition, Effective Date of Acquisition | Mar. 31, 2017 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 1,160 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 175 | ||||
Goodwill | 1,206 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 3,145 | ||||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | $ 0 | ||||
Customer Relationships [Member] | GNSSGlobalTop [Member] | |||||
Business Acquisition [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||||
Finite-lived Intangible Assets Acquired | 640 | ||||
Existing Technology [Member] | GNSSGlobalTop [Member] | |||||
Business Acquisition [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 3 years | ||||
Finite-lived Intangible Assets Acquired | 410 | ||||
Order or Production Backlog [Member] | GNSSGlobalTop [Member] | |||||
Business Acquisition [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 11 months | ||||
Finite-lived Intangible Assets Acquired | $ 110 |
BLUE CREATION Narrative (Detail
BLUE CREATION Narrative (Details) - USD ($) $ in Thousands | Nov. 02, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 211,074 | $ 218,516 | $ 154,114 | |
Payments to Acquire Businesses, Net of Cash Acquired | $ 0 | $ 0 | $ 2,882 | |
Blue Creation [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 920 | |||
Payments to Acquire Businesses, Gross | 6,400 | |||
Payments to Acquire Businesses, Net of Cash Acquired | 2,900 | |||
Business Combination, Contingent Consideration, Liability | $ 500 | |||
Business Acquisition, Effective Date of Acquisition | Nov. 2, 2016 |
BLUE CREATION Schedule of recog
BLUE CREATION Schedule of recognized identified assets acquired and liabilities assumed (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Nov. 02, 2016 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 211,074 | $ 218,516 | $ 154,114 | |
Blue Creation [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 3,563 | |||
Accounts receivable | 237 | |||
Other assets | 111 | |||
Identifiable intangible assets | 2,540 | |||
Goodwill | 920 | |||
Total assets acquired | 7,371 | |||
Accounts payable and accrued liabilities | 392 | |||
Deferred income taxes | 534 | |||
Fair value of net assets acquired | $ 6,445 |
BLUE CREATION Schedule of the C
BLUE CREATION Schedule of the Components of Acquired Intangible Assets Subject to Amortization (Details) - Blue Creation [Member] $ in Thousands | Nov. 02, 2016USD ($) |
Business Acquisition [Line Items] | |
Finite-lived Intangible Assets Acquired | $ 2,540 |
Customer Relationships [Member] | |
Business Acquisition [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 3 years 6 months |
Finite-lived Intangible Assets Acquired | $ 2,090 |
Existing Technology [Member] | |
Business Acquisition [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 4 years |
Finite-lived Intangible Assets Acquired | $ 450 |
GENX MOBILE INC Narrative (Deta
GENX MOBILE INC Narrative (Details) - USD ($) $ in Thousands | Aug. 03, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 0 | $ 0 | $ 2,882 | |
Goodwill | $ 211,074 | $ 218,516 | $ 154,114 | |
GenX Mobile Inc [Member] | ||||
Business Acquisition [Line Items] | ||||
Payments to Acquire Businesses, Gross | $ 7,752 | |||
Payments to Acquire Businesses, Net of Cash Acquired | 5,900 | |||
Goodwill | 1,782 | |||
Business Combination, Contingent Consideration Arrangements, Change in Range of Outcomes, Contingent Consideration, Liability, Significant Inputs | 1,000 | |||
Contingent consideration, maximum | 1,400 | |||
Business Combination, Contingent Consideration, Liability | $ 1,375 | |||
Business Acquisition, Effective Date of Acquisition | Aug. 3, 2016 |
GENX MOBILE INC Schedule of Cas
GENX MOBILE INC Schedule of Cash and Contingent Consideration (Details) - USD ($) $ in Thousands | Dec. 07, 2017 | Aug. 03, 2016 |
Business Acquisition [Line Items] | ||
Business Combination, Consideration Transferred | $ 97,501 | |
GenX Mobile Inc [Member] | ||
Business Acquisition [Line Items] | ||
Payments to Acquire Businesses, Gross | $ 7,752 | |
Business Combination, Contingent Consideration, Liability | 1,375 | |
Business Combination, Consideration Transferred | $ 9,127 |
GENX MOBILE INC Schedule of Rec
GENX MOBILE INC Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Aug. 03, 2016 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 211,074 | $ 218,516 | $ 154,114 | |
GenX Mobile Inc [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 1,852 | |||
Accounts receivable | 1,754 | |||
Inventory | 2,375 | |||
Other assets | 124 | |||
Identifiable intangible assets | 3,926 | |||
Goodwill | 1,782 | |||
Total assets acquired | 11,813 | |||
Accounts payable and accrued liabilities | 1,458 | |||
Deferred income taxes | 1,228 | |||
Fair value of net assets acquired | $ 9,127 |
GENX MOBILE INC Schedule of the
GENX MOBILE INC Schedule of the Components of Acquired Intangible Assets Subject to Amortization (Details) - GenX Mobile Inc [Member] $ in Thousands | Aug. 03, 2016USD ($) |
Business Acquisition [Line Items] | |
Finite-lived Intangible Assets Acquired | $ 3,926 |
Customer Relationships [Member] | |
Business Acquisition [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 5 years |
Finite-lived Intangible Assets Acquired | $ 2,640 |
Existing Technology [Member] | |
Business Acquisition [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 4 years |
Finite-lived Intangible Assets Acquired | $ 973 |
In Process Research and Development [Member] | |
Business Acquisition [Line Items] | |
Finite-lived Intangible Assets Acquired | $ 313 |
SEGMENTED INFORMATION Narrative
SEGMENTED INFORMATION Narrative (Details) | 12 Months Ended |
Dec. 31, 2018segment | |
Segmented Information [Abstract] | |
Number of Reportable Segments | 3 |
SEGMENTED INFORMATION Schedule
SEGMENTED INFORMATION Schedule of revenue by segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Revenue | $ 793,602 | $ 690,727 | $ 615,015 |
Cost of Goods and Services Sold | 529,031 | 456,488 | 397,724 |
Gross margin | $ 264,571 | $ 234,239 | $ 217,291 |
Gross margin % | 33.30% | 33.90% | 35.30% |
Expenses | $ 282,846 | $ 234,139 | $ 195,621 |
Earnings (loss) from operations | (18,275) | 100 | 21,670 |
Total assets | 683,916 | 694,644 | 581,457 |
OEM Solutions | |||
Segment Reporting Information [Line Items] | |||
Revenue | 583,214 | 554,537 | 515,925 |
Cost of Goods and Services Sold | 417,645 | 384,230 | 349,781 |
Gross margin | $ 165,569 | $ 170,307 | $ 166,144 |
Gross margin % | 28.40% | 30.70% | 32.20% |
Enterprise Solutions | |||
Segment Reporting Information [Line Items] | |||
Revenue | $ 119,927 | $ 101,535 | $ 71,486 |
Cost of Goods and Services Sold | 58,796 | 53,014 | 31,537 |
Gross margin | $ 61,131 | $ 48,521 | $ 39,949 |
Gross margin % | 51.00% | 47.80% | 55.90% |
IoT Services | |||
Segment Reporting Information [Line Items] | |||
Revenue | $ 90,461 | $ 34,655 | $ 27,604 |
Cost of Goods and Services Sold | 52,590 | 19,244 | 16,406 |
Gross margin | $ 37,871 | $ 15,411 | $ 11,198 |
Gross margin % | 41.90% | 44.50% | 40.60% |
SEGMENTED INFORMATION Schedul_2
SEGMENTED INFORMATION Schedule of revenue by geographical region (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
REVENUE BY GEOGRAPHICAL REGION | |||
Revenue | $ 793,602 | $ 690,727 | $ 615,015 |
Americas [Member] | |||
REVENUE BY GEOGRAPHICAL REGION | |||
Revenue | 314,169 | 227,905 | 213,633 |
Europe, Middle East and Africa [Member] | |||
REVENUE BY GEOGRAPHICAL REGION | |||
Revenue | 167,812 | 168,400 | 141,932 |
Asia-Pacific [Member] | |||
REVENUE BY GEOGRAPHICAL REGION | |||
Revenue | $ 311,621 | $ 294,422 | $ 259,450 |
SEGMENTED INFORMATION Schedul_3
SEGMENTED INFORMATION Schedule of property and equipment by geographical region (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
PROPERTY AND EQUIPMENT BY GEOGRAPHICAL REGION | ||
Property and equipment | $ 39,842 | $ 42,977 |
Americas [Member] | ||
PROPERTY AND EQUIPMENT BY GEOGRAPHICAL REGION | ||
Property and equipment | 26,045 | 26,608 |
Europe, Middle East and Africa [Member] | ||
PROPERTY AND EQUIPMENT BY GEOGRAPHICAL REGION | ||
Property and equipment | 9,027 | 11,136 |
Asia-Pacific [Member] | ||
PROPERTY AND EQUIPMENT BY GEOGRAPHICAL REGION | ||
Property and equipment | $ 4,770 | $ 5,233 |
RESEARCH AND DEVELOPMENT (Detai
RESEARCH AND DEVELOPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Research and Development [Abstract] | |||
Gross research and development | $ 94,352 | $ 83,538 | $ 73,293 |
Government tax credits | (645) | (885) | (618) |
Total | $ 93,707 | $ 82,653 | $ 72,675 |
RESTRUCTURING (Details)
RESTRUCTURING (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Nov. 30, 2018employee | Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($)employee | Dec. 31, 2017USD ($)employee | Dec. 31, 2016USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||
Number of positions eliminated | employee | 76 | 61 | 19 | ||
Restructuring costs | $ 1,100 | ||||
Completion date | Mar. 28, 2019 | ||||
Restructuring Reserve [Roll Forward] | |||||
Balance, beginning of period | $ 540 | 0 | |||
Expensed in period | 7,115 | 1,076 | $ 0 | ||
Disbursements | (5,081) | (592) | |||
Foreign exchange | (88) | 56 | |||
Balance, end of period | $ 2,486 | 2,486 | 540 | $ 0 | |
Accounts Payable and Accrued Liabilities | |||||
Restructuring Reserve [Roll Forward] | |||||
Balance, beginning of period | 540 | ||||
Balance, end of period | 2,486 | 2,486 | 540 | ||
February 2,017 | |||||
Restructuring Reserve [Roll Forward] | |||||
Balance, beginning of period | 540 | ||||
Balance, end of period | 0 | 0 | 540 | ||
March 2,018 | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 4,800 | ||||
Additional restructuring costs | 200 | ||||
Restructuring Reserve [Roll Forward] | |||||
Balance, beginning of period | 0 | ||||
Balance, end of period | 842 | 842 | 0 | ||
November 2,018 | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 2,300 | ||||
Additional restructuring costs | 300 | ||||
Restructuring Reserve [Roll Forward] | |||||
Balance, beginning of period | 0 | ||||
Balance, end of period | $ 1,644 | $ 1,644 | $ 0 |
OTHER INCOME (EXPENSE) (Details
OTHER INCOME (EXPENSE) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |||
Interest income | $ 253 | $ 245 | $ 163 |
Interest expense | (156) | (159) | (71) |
Noninterest Expense | (46) | (19) | (9) |
Other income (note 9) | $ 51 | $ 67 | $ 83 |
INCOME TAXES Schedule of compon
INCOME TAXES Schedule of components of earnings (loss) before income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Canadian | $ 10,880 | $ 7,205 | $ 15,480 |
Foreign | (34,574) | 512 | 4,537 |
Earnings (loss) before income taxes | $ (23,694) | $ 7,717 | $ 20,017 |
INCOME TAXES Schedule of income
INCOME TAXES Schedule of income tax expense (recovery) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Canadian: | |||
Current | $ 101 | $ 28 | $ (287) |
Deferred | (4,508) | 1,665 | 401 |
Total | (4,407) | 1,693 | 114 |
Foreign: | |||
Current | 2,500 | 2,347 | 7,304 |
Deferred | 2,823 | (841) | (3,047) |
Total | 5,323 | 1,506 | 4,257 |
Total: | |||
Current | 2,601 | 2,375 | 7,017 |
Deferred | (1,685) | 824 | (2,646) |
Total | $ 916 | $ 3,199 | $ 4,371 |
INCOME TAXES Schedule of reconc
INCOME TAXES Schedule of reconciliation of income taxes calculated at the statutory rate to the actual income tax position (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 26.99% | 26.01% | 26.01% |
Reconciliation of income taxes calculated at the statutory rate to the actual income tax provision | |||
Income tax expense (recovery) at Canadian statutory income tax rates of 26.99% (2017 - 26.01%; 2017 - 26.01%) | $ (6,330) | $ 1,979 | $ 5,183 |
Increase (decrease) in income taxes for: | |||
Permanent and other differences | 2,173 | (1,452) | (2,192) |
Change in statutory/foreign tax rates and foreign exchange rates | 4,238 | 1,049 | 11,581 |
Change in valuation allowance | 1,041 | 1,571 | (11,403) |
Stock-based compensation expense | 1,973 | 1,633 | 1,039 |
Adjustment to prior years | (2,179) | (1,581) | 163 |
Total | $ 916 | $ 3,199 | $ 4,371 |
INCOME TAXES Schedule of tax ef
INCOME TAXES Schedule of tax effects of temporary differences that give rise to significant future tax assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Deferred Tax Assets, Net, Noncurrent | $ 11,751 | $ 12,197 |
Deferred income tax assets (liabilities) | ||
Property and equipment | 1,289 | 1,470 |
Non capital loss carry-forwards | 89,499 | 87,854 |
Capital loss carry-forwards | 3,195 | 3,166 |
Scientific research and development expenses and credits | 20,004 | 23,829 |
Reserves and other | 16,044 | 14,784 |
Investments | (801) | (471) |
Acquired intangibles | (10,022) | (13,761) |
Future income tax assets ,Total | 119,208 | 116,871 |
Valuation allowance | 113,560 | 112,519 |
Total | 5,648 | 4,352 |
Liabilities | ||
Non-current | (6,103) | (7,845) |
Total | $ 5,648 | $ 4,352 |
INCOME TAXES Narrative (Details
INCOME TAXES Narrative (Details) $ in Thousands, € in Millions | 12 Months Ended | |||
Dec. 31, 2018EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Capital loss carry-forward | ||||
Valuation allowance | $ 113,560 | $ 112,519 | ||
Unrecognized Tax Benefits | 4,482 | 4,418 | $ 4,329 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 652 | 747 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 29 | $ 642 | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | 97 | |||
Capital loss carry-forwards [Member] | ||||
Capital loss carry-forward | ||||
Capital loss carry-forwards | 11,519 | |||
R&D tax credit [Member] | France [Member] | ||||
Capital loss carry-forward | ||||
Tax credit carried forward | 3,458 | |||
Period after which unused tax credit may be refunded by the tax authorities | 3 years | |||
Employment tax credit [Member] | France [Member] | ||||
Capital loss carry-forward | ||||
Tax credit carried forward | 287 | |||
Investment tax credits [Member] | Canadian Federal [Member] | ||||
Capital loss carry-forward | ||||
Tax credit carried forward | 19,669 | |||
Investment tax credits [Member] | Canadian Provincial [Member] | ||||
Capital loss carry-forward | ||||
Tax credit carried forward | 7,957 | |||
U.S. subsidiary [Member] | R&D tax credit [Member] | U.S. [Member] | ||||
Capital loss carry-forward | ||||
Tax credit carried forward | 6,445 | |||
NORWAY | Foreign subsidiaries [Member] | ||||
Capital loss carry-forward | ||||
Net operating loss carry-forwards | 21 | |||
Brazil [Member] | Foreign subsidiaries [Member] | ||||
Capital loss carry-forward | ||||
Net operating loss carry-forwards | 7 | |||
Limitation on net operating losses deduction as a percentage of taxable income (as a percent) | 30.00% | |||
U.S. [Member] | Foreign subsidiaries [Member] | ||||
Capital loss carry-forward | ||||
Net operating loss carry-forwards | 68,902 | |||
Sweden [Member] | Foreign subsidiaries [Member] | ||||
Capital loss carry-forward | ||||
Net operating loss carry-forwards | 11,109 | |||
Luxembourg [Member] | Foreign subsidiaries [Member] | ||||
Capital loss carry-forward | ||||
Net operating loss carry-forwards | 60,203 | |||
France [Member] | Foreign subsidiaries [Member] | ||||
Capital loss carry-forward | ||||
Net operating loss carry-forwards | $ 209,202 | |||
Base amount limitation of net operating loss deduction | € | € 1 | |||
Limitation on net operating losses deduction as a percentage of taxable income (as a percent) | 50.00% | |||
Amount of taxable income over which the percentage limitation is applied | € | € 1 | |||
Minimum [Member] | ||||
Capital loss carry-forward | ||||
Operating Loss Carryforwards, Expiration Date | Jan. 1, 2021 | |||
Minimum [Member] | Investment tax credits [Member] | Canadian Federal [Member] | ||||
Capital loss carry-forward | ||||
Tax Credit Carryforward, Expiration Date | Jan. 1, 2021 | |||
Maximum [Member] | ||||
Capital loss carry-forward | ||||
Operating Loss Carryforwards, Expiration Date | Jan. 1, 2037 | |||
Maximum [Member] | Investment tax credits [Member] | Canadian Federal [Member] | ||||
Capital loss carry-forward | ||||
Tax Credit Carryforward, Expiration Date | Jan. 1, 2038 |
INCOME TAXES Schedule of reco_2
INCOME TAXES Schedule of reconciliation of the total amounts of unrecognized tax benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of the total amounts of unrecognized tax benefits | ||
Unrecognized tax benefits, beginning of year | $ 4,418 | $ 4,329 |
Increases — tax positions taken in prior periods | 3 | 36 |
Increases — tax positions taken in current period | 0 | 61 |
Settlements and lapses of statute of limitations | 61 | (8) |
Unrecognized tax benefits, end of year | $ 4,482 | $ 4,418 |
STOCK-BASED COMPENSATION PLAN_2
STOCK-BASED COMPENSATION PLANS Schedule of stock-based compensation expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stock-based compensation expense: | |||
Stock-based compensation expense | $ 13,060 | $ 10,341 | $ 7,629 |
Stock option plan [Member] | |||
Stock-based compensation expense: | |||
Stock-based compensation expense | 3,350 | 3,297 | 2,170 |
Restricted stock plan [Member] | |||
Stock-based compensation expense: | |||
Stock-based compensation expense | 9,710 | 7,044 | 5,459 |
Cost of goods sold [Member] | |||
Stock-based compensation expense: | |||
Stock-based compensation expense | 491 | 461 | 420 |
Sales and marketing [Member] | |||
Stock-based compensation expense: | |||
Stock-based compensation expense | 2,784 | 2,503 | 1,714 |
Research and development [Member] | |||
Stock-based compensation expense: | |||
Stock-based compensation expense | 2,274 | 2,038 | 1,375 |
Administration [Member] | |||
Stock-based compensation expense: | |||
Stock-based compensation expense | $ 7,511 | $ 5,339 | $ 4,120 |
STOCK-BASED COMPENSATION PLAN_3
STOCK-BASED COMPENSATION PLANS Stock option plan - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Outstanding Stock Maximum | 8.10% | 8.10% | |||
Unrecognized stock-based compensation cost (in dollars) | $ 5,451 | $ 5,451 | $ 5,451 | $ 7,879 | $ 3,754 |
Weighted average period for recognition of unrecognized stock-based compensation cost | 2 years 3 months 18 days | 2 years 9 months 24 days | 2 years 5 months 24 days | ||
Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date | Nov. 13, 2023 | ||||
Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date | Mar. 5, 2019 | ||||
Stock options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 4 years | 4 years | 4 years | ||
Percentage of the award vesting at first anniversary | 25.00% | 25.00% | 25.00% | ||
Stock options [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expiration term | 5 years | ||||
Stock option plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of issued and outstanding common shares available for issue if the lesser of two alternatives | 7,000,000 | 7,000,000 | 7,000,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Outstanding Stock Maximum | 8.10% | ||||
Common shares available for future allocation under the plan | 1,138,266 | 1,138,266 | 1,138,266 |
STOCK-BASED COMPENSATION PLAN_4
STOCK-BASED COMPENSATION PLANS Schedule of fair value of share options assumptions used (Details) - Stock options [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 2.22% | 1.37% | 0.73% |
Annual dividends per share | $ 0 | $ 0 | $ 0 |
Expected stock price volatility | 55.00% | 55.00% | 51.00% |
Expected option life (in years) | 4 years | 4 years | 4 years |
Average fair value of options granted (in dollars) | $ 7.02 | $ 11.09 | $ 4.40 |
STOCK-BASED COMPENSATION PLAN_5
STOCK-BASED COMPENSATION PLANS Schedule of stock option activity (Details) - Stock options [Member] $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2018$ / shares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2017$ / shares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2016$ / shares | Dec. 31, 2015USD ($)$ / sharesshares | |
Number of Shares | |||||||
Outstanding at the beginning of the period (in shares) | 1,463,481 | 1,315,623 | 965,911 | ||||
Granted (in shares) | 343,173 | 685,936 | 651,357 | ||||
Exercised (in shares) | (221,262) | (500,184) | (231,704) | ||||
Forfeited (in shares) | (207,044) | (37,894) | (69,941) | ||||
Outstanding at the end of the period (in shares) | 1,378,348 | 1,463,481 | 1,315,623 | 965,911 | |||
Weighted Average Exercise Price | |||||||
Outstanding at the beginning of the period (in dollars per share) | (per share) | $ 20.98 | $ 26.38 | $ 14.61 | $ 19.65 | $ 15.44 | $ 21.47 | |
Granted (in dollars per share) | (per share) | 15.75 | 21.47 | 25.58 | 32.16 | 10.95 | 14.72 | |
Exercised (in dollars per share) | (per share) | 11.81 | 16.10 | 11.86 | 14.91 | 8.75 | 11.76 | |
Forfeited (in dollars per share) | (per share) | 25.10 | 34.24 | 19.55 | 24.58 | 14.32 | 19.25 | |
Outstanding at the end of the period (in dollars per share) | (per share) | $ 19.64 | $ 26.79 | $ 20.98 | $ 26.38 | $ 14.61 | $ 19.65 | $ 15.44 |
Weighted Average Remaining Contractual Life | |||||||
Outstanding at the beginning of the period | 2 years 9 months 18 days | 3 years 2 months | 2 years 11 months | 2 years 6 months | |||
Outstanding at the end of the period | 2 years 9 months 18 days | 3 years 2 months | 2 years 11 months | 2 years 6 months | |||
Aggregate Intrinsic Value | |||||||
Outstanding at the beginning of the period | $ | $ 4,788 | $ 4,687 | $ 3,541 | ||||
Exercised | $ | 1,222 | 6,997 | 1,608 | ||||
Outstanding at the end of the period | $ | $ 822 | $ 4,788 | $ 4,687 | $ 3,541 |
STOCK-BASED COMPENSATION PLAN_6
STOCK-BASED COMPENSATION PLANS Schedule of stock options outstanding and exercisable (Details) - 12 months ended Dec. 31, 2018 | $ / sharesshares | $ / shares$ / sharesshares | $ / sharesshares |
Options Outstanding | |||
Number of Options | shares | 1,378,348 | 1,378,348 | 1,378,348 |
Weighted Average Remaining Option Life | 2 years 9 months 18 days | 2 years 9 months 18 days | |
Weighted Average Exercise Price (in dollars per share) | (per share) | $ 19.64 | $ 19.64 | $ 26.79 |
Options Exercisable | |||
Number Of options Exercisable (in shares) | shares | 612,133 | 612,133 | 612,133 |
Weighted Average Exercise Price (in dollars per share) | (per share) | $ 21.26 | $ 21.26 | $ 28.99 |
Range of exercise prices $10.26 - $14.53 U.S. | |||
Options Outstanding | |||
Number of Options | shares | 275,467 | 275,467 | 275,467 |
Weighted Average Remaining Option Life | 2 years 1 month 6 days | 2 years 1 month 6 days | |
Weighted Average Exercise Price (in dollars per share) | $ 10.47 | $ 10.47 | |
Options Exercisable | |||
Number Of options Exercisable (in shares) | shares | 153,085 | 153,085 | 153,085 |
Weighted Average Exercise Price (in dollars per share) | $ 10.47 | $ 10.47 | |
Exercise price, low end of range (in dollars per share) | 10.26 | ||
Exercise price, high end of range (in dollars per share) | $ 14.53 | ||
Range of exercise prices $13.99 - $19.81 Cdn | |||
Options Outstanding | |||
Weighted Average Exercise Price (in dollars per share) | $ 14.28 | ||
Options Exercisable | |||
Weighted Average Exercise Price (in dollars per share) | $ 14.28 | ||
Exercise price, low end of range (in dollars per share) | $ 13.99 | ||
Exercise price, high end of range (in dollars per share) | $ 19.81 | ||
Range of exercise prices $14.54 - $16.40 U.S. | |||
Options Outstanding | |||
Number of Options | shares | 355,436 | 355,436 | 355,436 |
Weighted Average Remaining Option Life | 3 years 8 months 12 days | 3 years 8 months 12 days | |
Weighted Average Exercise Price (in dollars per share) | $ 15.62 | $ 15.62 | |
Options Exercisable | |||
Number Of options Exercisable (in shares) | shares | 36,079 | 36,079 | 36,079 |
Weighted Average Exercise Price (in dollars per share) | $ 15.41 | $ 15.41 | |
Exercise price, low end of range (in dollars per share) | 14.54 | ||
Exercise price, high end of range (in dollars per share) | $ 16.40 | ||
Range of exercise prices $19.82 - $22.37 Cdn | |||
Options Outstanding | |||
Weighted Average Exercise Price (in dollars per share) | $ 21.30 | ||
Options Exercisable | |||
Weighted Average Exercise Price (in dollars per share) | $ 21.01 | ||
Exercise price, low end of range (in dollars per share) | $ 19.82 | ||
Exercise price, high end of range (in dollars per share) | $ 22.37 | ||
Range of exercise prices $16.41 - 24.61 U.S. | |||
Options Outstanding | |||
Number of Options | shares | 390,558 | 390,558 | 390,558 |
Weighted Average Remaining Option Life | 2 years 10 months 24 days | 2 years 10 months 24 days | |
Weighted Average Exercise Price (in dollars per share) | $ 22.87 | $ 22.87 | |
Options Exercisable | |||
Number Of options Exercisable (in shares) | shares | 192,812 | 192,812 | 192,812 |
Weighted Average Exercise Price (in dollars per share) | $ 22.59 | $ 22.59 | |
Exercise price, low end of range (in dollars per share) | 16.41 | ||
Exercise price, high end of range (in dollars per share) | $ 24.61 | ||
Range of exercise prices $22.38 - $33.56 Cdn | |||
Options Outstanding | |||
Weighted Average Exercise Price (in dollars per share) | $ 31.18 | ||
Options Exercisable | |||
Weighted Average Exercise Price (in dollars per share) | $ 30.81 | ||
Exercise price, low end of range (in dollars per share) | $ 22.38 | ||
Exercise price, high end of range (in dollars per share) | $ 33.56 | ||
Range of exercise prices $24.62 - $25.15 U.S. | |||
Options Outstanding | |||
Number of Options | shares | 204,995 | 204,995 | 204,995 |
Weighted Average Remaining Option Life | 3 years 1 month 6 days | 3 years 1 month 6 days | |
Weighted Average Exercise Price (in dollars per share) | $ 25.10 | $ 25.10 | |
Options Exercisable | |||
Number Of options Exercisable (in shares) | shares | 94,370 | 94,370 | 94,370 |
Weighted Average Exercise Price (in dollars per share) | $ 25.10 | $ 25.10 | |
Exercise price, low end of range (in dollars per share) | 24.62 | ||
Exercise price, high end of range (in dollars per share) | $ 25.15 | ||
Range of exercise prices $33.57 - $34.30 Cdn | |||
Options Outstanding | |||
Weighted Average Exercise Price (in dollars per share) | $ 34.23 | ||
Options Exercisable | |||
Weighted Average Exercise Price (in dollars per share) | $ 34.23 | ||
Exercise price, low end of range (in dollars per share) | $ 33.57 | ||
Exercise price, high end of range (in dollars per share) | $ 34.30 | ||
Range of exercise prices $25.16 - $32.29 U.S. | |||
Options Outstanding | |||
Number of Options | shares | 151,892 | 151,892 | 151,892 |
Weighted Average Remaining Option Life | 1 year 4 months 24 days | 1 year 4 months 24 days | |
Weighted Average Exercise Price (in dollars per share) | $ 30.05 | $ 30.05 | |
Options Exercisable | |||
Number Of options Exercisable (in shares) | shares | 135,787 | 135,787 | 135,787 |
Weighted Average Exercise Price (in dollars per share) | $ 30.40 | $ 30.40 | |
Exercise price, low end of range (in dollars per share) | 25.16 | ||
Exercise price, high end of range (in dollars per share) | $ 32.29 | ||
Range of exercise prices $34.31 - $44.03 Cdn | |||
Options Outstanding | |||
Weighted Average Exercise Price (in dollars per share) | $ 40.98 | ||
Options Exercisable | |||
Weighted Average Exercise Price (in dollars per share) | $ 41.45 | ||
Exercise price, low end of range (in dollars per share) | $ 34.31 | ||
Exercise price, high end of range (in dollars per share) | $ 44.03 |
STOCK-BASED COMPENSATION PLAN_7
STOCK-BASED COMPENSATION PLANS Restricted share plans - Narrative (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Jan. 31, 2018 | Dec. 31, 2018USD ($)shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2018USD ($)Rateshares | Dec. 31, 2018USD ($)planshares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Outstanding Stock Maximum | 8.10% | 8.10% | ||||||
Unrecognized stock-based compensation cost (in dollars) | $ | $ 5,451 | $ 5,451 | $ 5,451 | $ 5,451 | $ 5,451 | $ 7,879 | $ 3,754 | |
Weighted average period for recognition of unrecognized stock-based compensation cost | 2 years 3 months 18 days | 2 years 9 months 24 days | 2 years 5 months 24 days | |||||
RSUs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vested (in dollars) | $ | 8,876 | $ 6,098 | $ 4,477 | |||||
Unrecognized stock-based compensation cost (in dollars) | $ | $ 11,530 | $ 11,530 | $ 11,530 | $ 11,530 | $ 11,530 | $ 9,346 | $ 5,408 | |
Weighted average period for recognition of unrecognized stock-based compensation cost | 1 year 10 months 18 days | 1 year 7 months | 1 year 7 months | |||||
Restricted Stock Plan 1 Year [Member] | RSUs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 1 year | |||||||
Market Based Restricted Stock Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of plans | plan | 2 | |||||||
Treasury Based Restricted Stock Plan [Member] | RSUs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Outstanding Stock Maximum | Rate | 3.70% | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | shares | 404,846 | 404,846 | 404,846 | 404,846 | 404,846 | |||
Restricted stock plan [Member] | RSUs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 3 years | |||||||
Vesting percent | 0.3333 | |||||||
Restricted stock plan [Member] | Performance Shares [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 3 years | |||||||
U.S. [Member] | Market Based Restricted Stock Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of plans | plan | 1 | |||||||
Non-U.S. [Member] | Market Based Restricted Stock Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of plans | plan | 1 | |||||||
France [Member] | Restricted stock plan [Member] | RSUs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Additional tax holding period | 2 years |
STOCK-BASED COMPENSATION PLAN_8
STOCK-BASED COMPENSATION PLANS Schedule of restricted stock unit activity (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / shares | Dec. 31, 2015USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized stock-based compensation cost (in dollars) | $ | $ 5,451 | $ 5,451 | $ 7,879 | $ 7,879 | $ 3,754 | $ 3,754 | |
Aggregate Intrinsic Value | |||||||
Weighted average period for recognition of unrecognized stock-based compensation cost | 2 years 3 months 18 days | 2 years 9 months 24 days | 2 years 5 months 24 days | ||||
RSUs | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized stock-based compensation cost (in dollars) | $ | $ 11,530 | $ 11,530 | $ 9,346 | $ 9,346 | $ 5,408 | $ 5,408 | |
Number of RSUs | |||||||
Outstanding at the beginning of the period (in shares) | 876,741 | 745,974 | 778,233 | ||||
Granted (in shares) | 754,452 | 454,685 | 354,517 | ||||
Vested (in shares) | (520,660) | (284,888) | (358,497) | ||||
Forfeited (in shares) | (64,258) | (39,030) | (28,279) | ||||
Outstanding at the end of the period (in shares) | 1,046,275 | 876,741 | 745,974 | 778,233 | |||
Outstanding - vested and not settled (in shares) | 117,557 | 117,557 | |||||
Outstanding - unvested (in shares) | 928,718 | 928,718 | |||||
Weighted Average Grant Date Fair Value | |||||||
Outstanding at the beginning of the period (in dollars per share) | (per share) | $ 21.31 | $ 26.80 | $ 16.81 | $ 22.59 | $ 18.04 | $ 25.08 | |
Granted (in dollars per share) | (per share) | 17.44 | 23.78 | 25.47 | 32.02 | 11.21 | 15.08 | |
Vested (in dollars per share) | (per share) | 18.84 | 25.69 | 18.18 | 22.86 | 14.56 | 19.57 | |
Forfeited (in dollars per share) | (per share) | 18.86 | 25.73 | 16.77 | 21.10 | 16.26 | 21.85 | |
Outstanding at the end of the period (in dollars per share) | (per share) | $ 19.24 | $ 26.23 | $ 21.31 | $ 26.80 | $ 16.81 | $ 22.59 | $ 18.04 |
Weighted Average Remaining Contractual Life In years | |||||||
Outstanding at the beginning of the period | 2 years 7 months 6 days | 2 years 1 month | 2 years 1 month | 1 year 9 months | |||
Outstanding at the end of the period | 2 years 7 months 6 days | 2 years 1 month | 2 years 1 month | 1 year 9 months | |||
Aggregate Intrinsic Value | |||||||
Outstanding at the beginning of the period (in dollars) | $ | $ 17,919 | $ 11,689 | $ 12,219 | ||||
Vested (in dollars) | $ | 8,876 | 6,098 | 4,477 | ||||
Outstanding at the end of the period (in dollars) | $ | $ 13,289 | $ 17,919 | $ 11,689 | $ 12,219 | |||
Weighted average period for recognition of unrecognized stock-based compensation cost | 1 year 10 months 18 days | 1 year 7 months | 1 year 7 months |
EARNINGS (LOSS) PER SHARE (Deta
EARNINGS (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Net earnings (loss) | $ (24,610) | $ 4,518 | $ 15,646 |
Weighted average shares used in computation of: | |||
Basic (in shares) | 36,019 | 32,356 | 32,032 |
Assumed conversion (in shares) | 0 | 537 | 303 |
Diluted (in shares) | 36,019 | 32,893 | 32,335 |
Net earnings (loss) per share (in dollars): | |||
Earnings Per Share, Basic | $ (0.68) | $ 0.14 | $ 0.49 |
Diluted earnings per share - (in dollars) | $ (0.68) | $ 0.14 | $ 0.48 |
ACCOUNTS RECEIVABLE Schedule of
ACCOUNTS RECEIVABLE Schedule of components of accounts receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Components of accounts receivable | ||||
Contract assets | $ 1,953 | $ 852 | ||
Accounts receivables, net | 171,725 | 173,054 | ||
Trade receivables [Member] | ||||
Components of accounts receivable | ||||
Accounts receivable, gross | 154,593 | 142,514 | ||
Less: allowance for doubtful accounts | (2,968) | (1,827) | $ (2,486) | $ (2,088) |
Accounts receivables, net | 151,625 | 140,687 | ||
Sales taxes receivable [Member] | ||||
Components of accounts receivable | ||||
Accounts receivable, gross | 3,016 | 3,120 | ||
Financing Receivable [Member] | ||||
Components of accounts receivable | ||||
Financing Receivables | 1,876 | 1,442 | ||
Other receivables [Member] | ||||
Components of accounts receivable | ||||
Other receivables | 9,472 | 22,545 | ||
Research Tax Credit Carryforward [Member] | ||||
Components of accounts receivable | ||||
Accounts receivable, gross | $ 3,783 | $ 4,408 |
ACCOUNTS RECEIVABLE Schedule _2
ACCOUNTS RECEIVABLE Schedule of movement in the allowance for doubtful accounts (Details) - Trade receivables [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Movement in the allowance for doubtful accounts | |||
Balance, beginning of year | $ 1,827 | $ 2,486 | $ 2,088 |
Bad debt expense (recovery) | 1,159 | (535) | 383 |
Write-offs and settlements | 9 | (194) | 15 |
Foreign exchange | (27) | 70 | 0 |
Balance, end of year | $ 2,968 | $ 1,827 | $ 2,486 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Electronic components | $ 28,849 | $ 32,753 |
Finished goods | 21,930 | 20,390 |
Inventories | $ 50,779 | $ 53,143 |
PREPAIDS AND OTHER (Details)
PREPAIDS AND OTHER (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Inventory advances | $ 3,851 | $ 93 |
Insurance and licenses | 846 | 608 |
Deposits | 1,921 | 2,161 |
Contract acquisition and fulfillment costs | 880 | 1,053 |
Other | 4,205 | 4,306 |
Prepaids and other | 11,703 | 8,221 |
Deferred contract acquisition and fulfillment costs | $ 959 | $ 399 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
PROPERTY AND EQUIPMENT | ||
Cost | $ 120,342 | $ 112,345 |
Accumulated amortization | 80,500 | 69,368 |
Net book value | 39,842 | 42,977 |
Furniture and fixtures [Member] | ||
PROPERTY AND EQUIPMENT | ||
Cost | 3,089 | 2,495 |
Accumulated amortization | 1,634 | 1,477 |
Net book value | 1,455 | 1,018 |
Research and development equipment [Member] | ||
PROPERTY AND EQUIPMENT | ||
Cost | 38,761 | 35,589 |
Accumulated amortization | 28,361 | 25,831 |
Net book value | 10,400 | 9,758 |
Production equipment and tooling [Member] | ||
PROPERTY AND EQUIPMENT | ||
Cost | 43,860 | 39,426 |
Accumulated amortization | 26,427 | 23,229 |
Net book value | 17,433 | 16,197 |
Computer equipment [Member] | ||
PROPERTY AND EQUIPMENT | ||
Cost | 9,099 | 9,611 |
Accumulated amortization | 7,464 | 7,279 |
Net book value | 1,635 | 2,332 |
Software [Member] | ||
PROPERTY AND EQUIPMENT | ||
Cost | 8,180 | 6,859 |
Accumulated amortization | 6,287 | 4,346 |
Net book value | 1,893 | 2,513 |
Leasehold improvements [Member] | ||
PROPERTY AND EQUIPMENT | ||
Cost | 6,754 | 6,399 |
Accumulated amortization | 4,489 | 3,950 |
Net book value | 2,265 | 2,449 |
Leased vehicles [Member] | ||
PROPERTY AND EQUIPMENT | ||
Cost | 983 | 1,122 |
Accumulated amortization | 688 | 752 |
Net book value | 295 | 370 |
Office equipment [Member] | ||
PROPERTY AND EQUIPMENT | ||
Cost | 1,533 | 1,460 |
Accumulated amortization | 1,162 | 971 |
Net book value | 371 | 489 |
Monitoring Equipment [Member] | ||
PROPERTY AND EQUIPMENT | ||
Cost | 1,821 | 3,881 |
Accumulated amortization | 905 | 106 |
Net book value | 916 | 3,775 |
Network equipment [Member] | ||
PROPERTY AND EQUIPMENT | ||
Cost | 6,262 | 5,503 |
Accumulated amortization | 3,083 | 1,427 |
Net book value | $ 3,179 | $ 4,076 |
PROPERTY AND EQUIPMENT Narrativ
PROPERTY AND EQUIPMENT Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Amortization expense relating to property and equipment | $ 18,204 | $ 14,032 | $ 12,492 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
INTANGIBLE ASSETS | ||
Cost | $ 238,296 | $ 246,545 |
Accumulated amortization | 153,406 | 137,946 |
Net book value | 84,890 | 108,599 |
Estimated annual amortization expense | ||
2,019 | 17,263 | |
2,020 | 13,605 | |
2,021 | 9,750 | |
2,022 | 8,699 | |
2,023 | 8,452 | |
Patents and trademarks [Member] | ||
INTANGIBLE ASSETS | ||
Cost | 15,163 | 15,404 |
Accumulated amortization | 13,328 | 12,077 |
Net book value | 1,835 | 3,327 |
Licenses [Member] | ||
INTANGIBLE ASSETS | ||
Cost | 50,740 | 51,859 |
Accumulated amortization | 49,112 | 50,434 |
Net book value | 1,628 | 1,425 |
Intellectual property [Member] | ||
INTANGIBLE ASSETS | ||
Cost | 28,277 | 28,411 |
Accumulated amortization | 18,671 | 13,541 |
Net book value | 9,606 | 14,870 |
Customer relationships [Member] | ||
INTANGIBLE ASSETS | ||
Cost | 118,741 | 124,706 |
Accumulated amortization | 61,993 | 53,627 |
Net book value | 56,748 | 71,079 |
Brand [Member] | ||
INTANGIBLE ASSETS | ||
Cost | 14,854 | 15,153 |
Accumulated amortization | 2,536 | 1,318 |
Net book value | 12,318 | 13,835 |
In-process research and development [Member] | ||
INTANGIBLE ASSETS | ||
Cost | 10,521 | 11,012 |
Accumulated amortization | 7,766 | 6,949 |
Net book value | $ 2,755 | $ 4,063 |
INTANGIBLE ASSETS Narrative (De
INTANGIBLE ASSETS Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
INTANGIBLE ASSETS | |||
Asset Impairment Charges | $ 3,668 | ||
Amortization expense relating to intangible assets | $ 20,946 | 16,471 | $ 13,402 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 6 years 8 months 12 days | ||
Net carrying amount of intangible assets, not subject to amortization | $ 313 |
GOODWILL (Details)
GOODWILL (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Changes in the carrying amount of goodwill | ||
Balance at beginning of year | $ 218,516 | $ 154,114 |
Goodwill acquired (note 5(a) and 5(b)) | 1,016 | 51,848 |
Disposal of assets of a business unit | (2,073) | 0 |
Foreign currency translation adjustments | (6,385) | 12,554 |
Balance at end of year | 211,074 | 218,516 |
OEM Solutions | ||
Changes in the carrying amount of goodwill | ||
Balance at beginning of year | 111,348 | |
Balance at end of year | 107,268 | 111,348 |
Enterprise Solutions | ||
Changes in the carrying amount of goodwill | ||
Balance at beginning of year | 27,405 | |
Balance at end of year | 26,988 | 27,405 |
IoT Services | ||
Changes in the carrying amount of goodwill | ||
Balance at beginning of year | 79,763 | |
Balance at end of year | $ 76,818 | $ 79,763 |
ACCOUNTS PAYABLE AND ACCRUED _3
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | ||
Trade payables and accruals | $ 94,067 | $ 94,775 |
Inventory commitment reserve | 843 | 1,440 |
Accrued royalties | 14,348 | 14,548 |
Accrued payroll and related liabilities | 18,115 | 17,572 |
Deferred Rent | 2,193 | 2,597 |
Professional Fees | 6,702 | 4,153 |
Taxes payable (including sales taxes) | 4,957 | 4,070 |
Product warranties (note 26(b)(iii)) | 7,914 | 8,159 |
Deferred Credits and Other Liabilities, Current | 7,055 | 3,984 |
Restructuring Reserve, Current | 2,486 | 540 |
Other | 25,540 | 23,529 |
Total | $ 184,220 | $ 175,367 |
LONG-TERM OBLIGATIONS (Details)
LONG-TERM OBLIGATIONS (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts Payable and Accrued Liabilities, Noncurrent [Abstract] | ||
Accrued royalties | $ 28,181 | $ 24,318 |
Deferred revenue - noncurrent | 6,317 | 3,346 |
Other | 8,752 | 8,973 |
Long-term obligations | $ 43,250 | $ 36,637 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance, beginning of period | $ (2,476) | |
Balance, end of period | (9,146) | $ (2,476) |
Foreign currency translation adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Foreign currency translation adjustments | (4,226) | 5,416 |
Gain (loss) on long term intercompany loan balances [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Foreign currency translation adjustments | $ (2,444) | 6,534 |
AOCI Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance, beginning of period | $ (14,426) |
SHARE CAPITAL (Details)
SHARE CAPITAL (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Aug. 01, 2018 | |
SHARE CAPITAL | ||||
Stock Repurchased During Period, Shares | 161,500 | 170,217 | ||
Share repurchased during period, value per share | $ 19.32 | $ 16.35 | ||
Common share cancellation (note 22) | $ 3,120 | $ 2,779 | $ 10,203 | |
Common shares [Member] | ||||
SHARE CAPITAL | ||||
Shares repurchased | 161,500 | 170,217 | 809,872 | |
Common share cancellation (note 22) | $ 1,933 | $ 1,825 | $ 8,696 | |
Common shares [Member] | Maximum [Member] | ||||
SHARE CAPITAL | ||||
Shares authorized to be repurchased | 3,580,668 | |||
Percentage of shares authorized to be repurchased | 9.90% | |||
Retained Earnings [Member] | ||||
SHARE CAPITAL | ||||
Common share cancellation (note 22) | $ 1,187 | $ 954 | $ 1,507 |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | ||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 89,297 | $ 65,224 | $ 102,772 | |
Income Taxes Paid, Net | 1,105 | 6,100 | 4,181 | |
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | 118 | 105 | 127 | |
Capital Expenditures Incurred but Not yet Paid | 231 | 0 | 200 | |
Capital Lease Obligations Incurred | 246 | 143 | 544 | |
Asset Retirement Obligation, Liabilities Incurred | 0 | 75 | 520 | |
Cash and Cash Equivalents, at Carrying Value | 89,076 | 65,003 | 102,772 | $ 93,936 |
Restricted Cash and Cash Equivalents | $ 221 | $ 221 | $ 0 |
FAIR VALUE MEASUREMENT (Details
FAIR VALUE MEASUREMENT (Details) $ in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)$ / $ | Dec. 31, 2017USD ($) | Dec. 31, 2018CAD ($)$ / $ | |
Fair Value Disclosures [Abstract] | |||
Investment Foreign Currency, Contract, Amount Purchased | $ 50.1 | ||
Derivative, Average Forward Exchange Rate | $ / $ | 1.3176 | 1.3176 | |
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | $ 1,201 | $ 307 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 30,000 | 10,000 | |
Line of Credit Facility, Expiration Date | Jul. 31, 2021 | ||
Standby Letters of Credit Facility, Maximum Capacity | $ 1,500 | $ 10,000 | |
Letters of Credit Outstanding, Amount | $ 100 |
COMMITMENTS AND CONTINGENCIES S
COMMITMENTS AND CONTINGENCIES Schedule of minimum future payments under operating leases for our continuing operations (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Minimum future payments under operating leases | |
2,019 | $ 7,557 |
2,020 | 6,617 |
2,021 | 4,986 |
2,022 | 1,619 |
2,023 | 674 |
Subsequent years | 4 |
Total | $ 21,457 |
COMMITMENTS AND CONTINGENCIES C
COMMITMENTS AND CONTINGENCIES Contingent liability on sale of products (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Changes in the liability for product warranties | ||
Balance, beginning of year | $ 8,159 | $ 7,561 |
Provisions | 3,351 | 4,431 |
Expenditures | (3,596) | (3,833) |
Balance, end of year | 7,914 | 8,159 |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||
Changes in the liability for product warranties | ||
Balance, beginning of year | 8,159 | 7,637 |
Balance, end of year | 8,159 | |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||
Changes in the liability for product warranties | ||
Balance, beginning of year | (76) | |
Balance, end of year | $ 0 | $ (76) |
COMMITMENTS AND CONTINGENCIES O
COMMITMENTS AND CONTINGENCIES Other commitments (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Wireless data and services [Member] | ||
Other commitments | ||
Purchase Obligation | $ 8,952 | $ 33,122 |
Electronic components inventory [Member] | ||
Other commitments | ||
Purchase Commitment, Remaining Minimum Amount Committed | 147,029 | 133,407 |
Inventory, Raw Materials and Supplies, Gross | $ 5,008 | $ 5,206 |
Legal proceedings and IP Indemn
Legal proceedings and IP Indemnification Claims Narrative (Details) - M2M Solutions LLC [Member] - patent | 1 Months Ended | |
Aug. 31, 2014 | Jan. 31, 2012 | |
COMMITMENTS AND CONTINGENCIES | ||
Patents found not infringed | 1 | |
Loss Contingency, Patents Allegedly Infringed, Number | 1 | 2 |