Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 27, 2017 | |
Document Information [Line Items] | ||
Entity Registrant Name | PDF SOLUTIONS INC | |
Entity Central Index Key | 1,120,914 | |
Trading Symbol | pdfs | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 32,333,162 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 109,007 | $ 116,787 |
Accounts receivable, net of allowance of $324 and $200, respectively | 54,029 | 48,157 |
Prepaid expenses and other current assets | 8,813 | 5,335 |
Total current assets | 171,849 | 170,279 |
Property and equipment, net | 23,068 | 19,341 |
Goodwill | 215 | 215 |
Intangible assets, net | 3,847 | 4,223 |
Deferred tax assets | 15,815 | 15,640 |
Other non-current assets | 12,263 | 12,631 |
Total assets | 227,057 | 222,329 |
Current liabilities: | ||
Accounts payable | 2,270 | 2,206 |
Accrued compensation and related benefits | 5,863 | 5,959 |
Accrued and other current liabilities | 2,075 | 2,080 |
Deferred revenues – current portion | 8,933 | 8,189 |
Billings in excess of recognized revenue | 389 | 88 |
Total current liabilities | 19,530 | 18,522 |
Long-term income taxes payable | 3,174 | 3,354 |
Other non-current liabilities | 2,253 | 1,650 |
Total liabilities | 24,957 | 23,526 |
Commitments and contingencies (Note 9) | ||
Stockholders’ equity: | ||
Preferred stock, $0.00015 par value, 5,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock, $0.00015 par value, 70,000 shares authorized: shares issued 39,187 and 38,514, respectively; shares outstanding 32,162and 31,864, respectively | 5 | 5 |
Additional paid-in-capital | 289,956 | 281,423 |
Treasury stock at cost, 7,025 and 6,650 shares, respectively | (61,532) | (54,882) |
Accumulated deficit | (25,046) | (25,752) |
Accumulated other comprehensive loss | (1,283) | (1,991) |
Total stockholders’ equity | 202,100 | 198,803 |
Total liabilities and stockholders’ equity | $ 227,057 | $ 222,329 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Accounts receivable, allowance | $ 324 | $ 200 |
Preferred stock, par value (in dollars per share) | $ 0.00015 | $ 0.00015 |
Preferred stock, shares authorized (in shares) | 5,000 | 5,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.00015 | $ 0.00015 |
Common stock, shares authorized (in shares) | 70,000 | 70,000 |
Common stock, shares issued (in shares) | 39,187 | 38,514 |
Common stock, shares outstanding (in shares) | 32,162 | 31,864 |
Treasury stock, shares (in shares) | 7,025 | 6,650 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenues: | ||||
Design-to-silicon-yield solutions | $ 16,500 | $ 20,574 | $ 36,198 | $ 39,152 |
Gainshare performance incentives | 7,789 | 6,114 | 12,380 | 12,617 |
Total revenues | 24,289 | 26,688 | 48,578 | 51,769 |
Costs of Design-to-silicon-yield solutions: | ||||
Direct costs of Design-to-silicon-yield solutions | 11,283 | 10,558 | 22,618 | 20,668 |
Amortization of acquired technology | 96 | 96 | 192 | 192 |
Total cost of Design-to-silicon-yield solutions | 11,379 | 10,654 | 22,810 | 20,860 |
Gross profit | 12,910 | 16,034 | 25,768 | 30,909 |
Operating expenses: | ||||
Research and development | 7,276 | 7,060 | 14,557 | 13,371 |
Selling, general and administrative | 6,195 | 5,094 | 12,095 | 10,218 |
Amortization of other acquired intangible assets | 92 | 117 | 184 | 234 |
Total operating expenses | 13,563 | 12,271 | 26,836 | 23,823 |
Income (loss) from operations | (653) | 3,763 | (1,068) | 7,086 |
Interest and other income (expense), net | 27 | (51) | (202) | (287) |
Income (loss) before income taxes | (626) | 3,712 | (1,270) | 6,799 |
Income tax provision (benefit) | (815) | 1,579 | (1,976) | 2,605 |
Net income | $ 189 | $ 2,133 | $ 706 | $ 4,194 |
Net income per share: | ||||
Basic (in dollars per share) | $ 0.01 | $ 0.07 | $ 0.02 | $ 0.13 |
Diluted (in dollars per share) | $ 0.01 | $ 0.07 | $ 0.02 | $ 0.13 |
Weighted average common shares: | ||||
Basic (in shares) | 32,111 | 31,276 | 32,051 | 31,222 |
Diluted (in shares) | 33,388 | 32,099 | 33,491 | 31,927 |
Net income | $ 189 | $ 2,133 | $ 706 | $ 4,194 |
Other comprehensive income: | ||||
Foreign currency translation adjustments, net of tax | 435 | (186) | 708 | 173 |
Comprehensive income | $ 624 | $ 1,947 | $ 1,414 | $ 4,367 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Operating activities: | ||
Net income | $ 706 | $ 4,194 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 2,286 | 1,624 |
Stock-based compensation expense | 5,788 | 4,957 |
Amortization of acquired intangible assets | 376 | 425 |
Deferred taxes | (193) | 1,023 |
Loss on disposal of property and equipment | 5 | 107 |
Provision for (reversal of) allowance for doubtful accounts | 124 | (99) |
Unrealized loss (gain) on foreign currency forward contract | 33 | (34) |
Changes in operating assets and liabilities: | ||
Accounts receivable, net of allowance | (5,996) | (1,249) |
Prepaid expenses and other current assets | (3,435) | (1,057) |
Accounts payable | 851 | 610 |
Accrued compensation and related benefits | (223) | 346 |
Accrued and other liabilities | (745) | (223) |
Deferred revenues | 726 | 947 |
Billings in excess of recognized revenues | 301 | (955) |
Other non-current assets | 377 | (7,852) |
Net cash provided by operating activities | 981 | 2,764 |
Investing activities: | ||
Purchases of property and equipment | (4,964) | (5,051) |
Net cash used in investing activities | (4,964) | (5,051) |
Financing activities: | ||
Proceeds from exercise of stock options | 1,808 | 452 |
Proceeds from employee stock purchase plan | 910 | 778 |
Purchases of treasury stock | (4,770) | (1,843) |
Payments for taxes related to net share settlement of equity awards | (1,879) | (1,075) |
Net cash (used in) provided by financing activities | (3,931) | (1,688) |
Effect of exchange rate changes on cash and cash equivalents | 134 | 39 |
Net change in cash and cash equivalents | (7,780) | (3,936) |
Cash and cash equivalents, beginning of period | 116,787 | 126,158 |
Cash and cash equivalents, end of period | 109,007 | 122,222 |
Supplemental disclosure of cash flow information: | ||
Taxes | 1,339 | 1,336 |
Property and equipment received and accrued in accounts payable and accrued and other liabilities | $ 1,726 | $ 1,656 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 6 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. Basis of Presentation The interim unaudited condensed consolidated financial statements included herein have been prepared by PDF Solutions, Inc. (the “Company”) pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), including the instructions to the Quarterly Report on Form 10 10 X. not may ’s Annual Report on Form 10 December 31, 2016. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries after the elimination of all intercompany balances and transactions. The condensed consolidated balance sheet at December 31, 2016, has been derived from the audited consolidated financial statements but does not Use of Estimates — The preparation of financial statements in conformity with generally accepted accounting principles in the United States (“U.S. GAAP”) 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 reporting period. Significant estimates in these financial statements include revenue recognition for fixed-price solution implementation service contracts, accounting for goodwill and intangible assets, stock-based compensation expense and accounting for income taxes. Actual results could differ from those estimates. Revenue Recognition — The Company derives revenue from two Design-to-silicon-yield solutions — Revenues that are derived from Design-to-silicon-yield solutions come from services and software and hardware licenses. The Company recognizes revenue for each element of Design-to-silicon-yield solutions as follows: The Company generates a significant portion of its Design-to-silicon-yield solutions revenue from fixed-price solution implementation service contracts delivered over a specific period of time. These contracts require reliable estimation of costs to perform obligations and the overall scope of each engagement. Revenue under project –based contracts for solution implementation services is recognized as services are performed using percentage of completion method of contract accounting based on costs or labor-hours input method, whichever is the most appropriate measure of the progress towards completion of the contract. Losses on fixed-price solution implementation contracts are recognized in the period when they become probable. Revisions in profit estimates are reflected in the period in which the conditions that require the revisions become known and can be estimated (cumulative catch-up method). Revenue under time and materials contracts for solution implementation services are recognized as the services are performed. On occasion, the Company licenses its software products as a component of its fixed-price service con tracts. In such instances, the software products are licensed to customers over a specified term of the agreement with support and maintenance to be provided, if applicable, over the license term. The amount of product and service revenue recognized in a given period is affected by the Company’s judgment as to whether an arrangement includes multiple deliverables and, if so, the Company’s determination of the fair value of each deliverable. In general, vendor-specific objective evidence of selling price (“VSOE”) does not not third not In some instances, the Company also licenses its DFI system as a separate component of fixed-price service contracts. The Company allocates revenue to all deliverables based on their relative selling prices. The Company currently does not The Company defers certain pre-contract costs incurred for specific anticipated contracts. Deferred costs consist primarily of direct costs to provide solution implementation services in relation to the specific anticipated contracts. The Company recognizes such costs as a component of cost of revenues, the timing of which is dependent upon persuasive evidence of contract arrangement assuming all other revenue recognition criteria are met. The Company also defers costs from arrangements that required us to defer the revenues, typically due to revenue recognition from multi-element arrangements or from contracts subject to customer acceptance. These costs are recognized in proportion to the related revenue. At the end of the reporting period, the Company evaluates its deferred costs for their probable recoverability. The Company recognizes impairment of deferred costs when it is determined that the costs no no $1.1 $0.5 June 30, 2017 December 31, 2016, The Company also licenses its software products separately from solution implementations. For software license arrangements that do not 2 3 4 5 not 1 2 3 Revenue from software-as-a-service (SaaS) that allow for the use of a hosted software product or service over a contractually determined period of time without taking possession of software are accounted for as subscriptions and recognized as revenue ratably over the coverage period beginning on the date the service is made available to customers. Revenue for software licenses with extended payment terms is not Deferred revenues consist substantially of amounts invoiced in advance of revenue recognition and is recognized as the revenue recognition criteria are met. Deferred revenues that will be recognized during the succeeding 12 $1.5 $1.5 June 30, 2017 December 31, 2016. Gainshare Performance Incentives — When the Company enters into a contract to provide yield improvement services, the contract usually includes two 1 2 may no |
Note 2 - Recent Accounting Pron
Note 2 - Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | 2. In May 2014, No. 2014 09, 606 No. 2015 14, 606 2016 08, 606 No. 2016 10, 606 No. 2016 11, 605 815 No. 2016 12, 606 2016 20, 606 five December 15, 2017, two not In February 2016, No. 2016 02, 842 ’ financial statements issued for fiscal years beginning after December 15, 2018, In August 2016 , the FASB issued ASU No. 2016 15, December 15, 2017, not In January 2017, No. 2017 01, : Clarifying the Definition of a Business , which narrows the existing definition of a business and provides a framework for evaluating whether a transaction should be accounted for as an acquisition (or disposal) of assets or a business. The guidance is effective for fiscal years beginning after December 15, 2017, In January 2017, No. 2017 04, 350 “ No. 2017 04” No. 2017 04 2 December 15, 2019, In May 2017, No. 2017 09, 718 No. 2017 09” No. 2017 09 718. December 15, 2017, |
Note 3 - Balance Sheet Componen
Note 3 - Balance Sheet Components | 6 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Supplemental Balance Sheet Disclosures [Text Block] | 3. Accounts receivable include amounts that are unbilled at the end of the period that are expected to be billed and collected within 12 receivable, totaled $21.0 $20.8 June 30, 2017 December 31, 2016, not 12 $9.7 $9.8 June 30, 2017 December 31, 2016, $1.1 $0.5 June 30, 2017 December 31, 2016, Property and equipment, net consists of (in thousands): June 30 , 2017 December 31, 2016 Property and equipment, net: Computer equipment $ 10,735 $ 10,642 Software 3,341 1,679 Furniture, fixtures and equipment 1,821 1,185 Leasehold improvements 1,972 1,132 Test equipment 12,597 11,723 Construction-in-progress 11,128 9,550 41,594 35,911 Less: accumulated depreciation (18,526 ) (16,570 ) Total $ 23,068 $ 19,341 Depreciation and amortization expense was $1. 2 $0.9 three June 30, 2017 2016, $2.3 $1.6 six June 30, 2017 2016, As of both June 30, 2017 December 31, 2016, $0.2 June 30 , 2017 Balance as of December 31, 2016 $ 215 Add: Goodwill from acquisition — Adjustment — Balance as of June 30, 2017 $ 215 Intangible assets balance was $ 3.8 $4.2 June 30, 2017 December 31, 2016, June 30, 2017 December 31, 2016 June 30, 2017 December 31, 2016 Amortization Period (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Acquired identifiable intangibles: Customer relationships 1 - 9 $ 5,920 $ (3, 964 ) $ 1,956 $ 5,920 $ (3,825 ) $ 2,095 Developed technology 4 - 6 14,100 (12,551 ) 1,549 14,100 (12,359 ) 1,741 Tradename 2 - 4 610 (608 ) 2 610 (583 ) 27 Backlog 1 100 (100 ) - 100 (100 ) - Patent 7 - 10 1,800 (1,460 ) 340 1,800 (1,440 ) 360 Other acquired intangibles 4 255 (255 ) - 255 (255 ) - Total $ 22,785 $ (18,938 ) $ 3,847 $ 22,785 $ (18,562 ) $ 4,223 The weighted average amortization period for acquired identifiable intangible assets was 5.97 June 30, 2017. three June 30, 2017 2016, $0.2 six June 30, 2017 2016, $0.4 Period Ending June 30 , 2017 (remaining 6 months) $ 353 2018 701 2019 701 2020 701 2021 526 2022 and thereafter 865 Total future amortization expense $ 3,847 Intangible assets are amortized over their useful lives unless these lives are determined to be indefinite. Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not three and six June 30, 2017, no |
Note 4 - Stockholders' Equity
Note 4 - Stockholders' Equity | 6 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Shareholders' Equity and Share-based Payments [Text Block] | 4. ’ EQUITY Stock-based compensation is estimated at the grant date based on the award ’s fair value and is recognized on a straight-line basis over the vesting periods, generally four . Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Cost of design-to-silicon yield-solutions $ 1,069 $ 956 $ 2,261 $ 2,041 Research and development 848 651 1,682 1,357 Selling, general and administrative 987 684 1,845 1,559 Stock-based compensation expenses $ 2,904 $ 2,291 $ 5,788 $ 4,957 On June 30, 2017, Stock Plans — November 16, 2011, 2011 May 28, 2013, 2011 May 27, 2014, 2011 May 31, 2016, 2011 May 31, 2017,when 2011 “2011 2011 may 9,050,000 3,500,000 2001 2001 November 16, 2011. 1.33 no ten four In 2001, adopted a 2001 “2001 2003, 2001 2001Plan 2011. 2001 ten four no may 2001 2001 The Company estimated the fair value of share-based awards granted under the 2011 Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Expected life (in years) 4.41 4.42 4.41 4.42 Volatility 41.63 % 43.58 % 41.53 % 44.26 % Risk-free interest rate 1.67 % 1.30 % 1.69 % 1.25 % Expected dividend — — — — Weighted average fair value per share of options granted during the period $ 5.98 $ 5.00 $ 6.16 $ 4.46 As of June 30, 2017, 9.6 2011 2.5 2011 0.5 2001 2011 June 30, 2017. June 30, 2017, no 2011 2001 Stock Plans ). Stock option activity under the Company ’s Stock Plans during the six June 30, 2017, Number of Options (in thousands) Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) Outstanding, January 1, 2017 1,364 $ 8.00 Granted (weighted average fair value of $ 6.16 per share) 96 $ 17 Exercised (257 ) $ 7.04 Canceled (3 ) $ 17.80 Expired - $ - Outstanding, June 30, 2017 1,200 $ 8.89 4.78 $ 9,288 Vested and expected to vest, June 30, 2017 1,182 $ 8.78 4.71 $ 9,271 Exercisable, June 30, 2017 989 $ 7.42 3.86 $ 9,010 The aggregate intrinsic value in the table above represents the total intrinsic value based on the Company ’s closing stock price of $16.45 June 30, 2017. six June 30, 2017, $3.1 As of June 30, 2017, $1.0 3.4 six June 30, 2017, $0.2 Nonvested restricted stock units activity during the six June 30, 2017, Shares (in thousands) Weighted Average Grant Date Fair Value Per Share Nonvested, January 1, 2017 1,542 $ 15.50 Granted 751 $ 16.56 Vested (317 ) $ 16.36 Forfeited (20 ) $ 15.70 Nonvested, June 30, 2017 1,956 $ 15.76 As of June 30, 2017, $26.1 3 not Employee Stock Purchase Plan — In July 2001, ten 10% 85% twenty-four four six January 1 2002, 1 675,000 2 2% 3 May 18, 2010, May 17, 2020. The Company estimated the fair value of purchase rights granted under the Purchase Plan during the period using the Black-Scholes-Merton option-pricing model with the following weighted average assumptions, resulting in the following weighted average fair values: Six Months Ended June 30 , 2017 2016 Expected life (in years) 1.25 1.25 Volatility 33.32 % 44.15 % Risk-free interest rate 0.93 % 0.50 % Expected dividend — — Weighted average fair value per share of options granted during the period $ 6.78 $ 3.56 During the three June 30, 2017 2016, not During the six June 30, 2017 2016, 100,000 84,000 $9.13 $9.21 June 30, 2017, $0.6 0.89 June 30, 2017, 4.4 Stock Repurchase Program —On October 25, 2016, $25.0 two three six June 30, 2017, 276,279 June 30, 2017, 276,279 $17.27 $4.8 $20.2 |
Note 5 - Income Taxes
Note 5 - Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 5. Income tax provision decreased $4.6 six June 30, 2017, $2.0 $2.6 six June 30, 2016. ’s effective tax rate was 155.6% 38.3% six June 30, 2017 2016, six June 30, 2017, 2016, $1.1 The Company ’s total amount of unrecognized tax benefits, excluding interest and penalties, as of June 30, 2017, $11.5 $6.9 December 31, 2016, $11.9 $7.2 June 30, 2017, $2.6 $9.3 $4.6 The valuation allowance was approximately $6.5 $6.8 June 30, 2017 December 31, 2016, not not The Company conducts business globally and, as a result, files numerous consolidated and separate income tax returns in the U.S. federal, various state and foreign jurisdictions. Because the Company used some of the tax attributes carried forward from previous years to tax years that are still open, statutes of limitation remain open for all tax years to the extent of the attributes carried forward into tax year 2002 not |
Note 6 - Net Income Per Share
Note 6 - Net Income Per Share | 6 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 6. Basic net income per share is computed by dividing net income by weighted average number of common shares outstanding for the period (excluding outstanding stock options and shares subject to repurchase). Diluted net income per share is computed using the weighted-average number of common shares outstanding for the period plus the potential effect of dilutive securities which are convertible into common shares (using the treasury stock method), except in cases in which the effect would be anti-dilutive. The following is a reconciliation of the numerators and denominators used in computing basic and diluted net income per share (in thousands except per share amount): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Numerator: Net income $ 189 $ 2,133 $ 706 $ 4,194 Denominator: Basic weighted average common shares outstanding 32,111 31,276 32,051 31,222 Dilutive effect of equity incentive plans 1,277 823 1,440 705 Diluted weighted average common shares outstanding 33,388 32,099 33,491 31,927 Net income per share: Basic $ 0.01 $ 0.07 $ 0.02 $ 0.13 Diluted $ 0.01 $ 0.07 $ 0.02 $ 0.13 The following table sets forth potential shares of common stock that are not Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Outstanding options 102 230 79 264 Nonvested restricted stock units 13 348 4 798 Employee Stock Purchase Plan 27 — 29 230 Total 142 578 112 1,292 |
Note 7 - Customer and Geographi
Note 7 - Customer and Geographic Information | 6 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 7. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or group, in deciding how to allocate resources and in assessing performance. The Company ’s chief operating decision maker, the chief executive officer, reviews discrete financial information presented on a consolidated basis for purposes of regularly making operating decisions, allocation of resources, and assessing financial performance. Accordingly, the Company considers itself to be in one The Company had revenues from individual customers in excess of 10% Three Months Ended June 30, Six Months Ended June 30, Customer 2017 2016 2017 2016 A 36 % 39 % 42 % 44 % B 15 % * % 10 % * % C * % * % * % 12 % D * % 13 % * % * % * represents less than 10% The Company had gross accounts receivable from individual customers in excess of 10% Customer June 30 , 2017 December 31, 2016 A 41 % 42 % B 19 % 13 % * represents less than 10% Revenues from customers by geographic area based on the location of the customers ’ work sites are as follows (in thousands): Three Months Ended June 30 , 2017 2016 Revenues Percentage of Revenues Revenues Percentage of Revenues United States $ 9,226 38 % $ 9,518 36 % China 4,753 20 1,499 6 Taiwan 3,643 15 5,725 21 Germany 1,794 7 3,994 15 Rest of the world 4,873 20 5,952 22 Total revenue $ 24,289 100 % $ 26,688 100 % Six Months Ended June 30, 2017 2016 Revenues Percentage of Revenues Revenues Percentage of Revenues United States $ 20,860 43 % $ 21,640 42 % Taiwan 7,480 15 7,909 15 China 6,440 13 2,598 5 Germany 4,102 8 7,028 14 South Korea 3,620 7 5,497 11 Rest of the world 6,076 14 7,097 13 Total revenue $ 48,578 100 % $ 51,769 100 % Long-lived assets, net by geographic area are as follows (in thousands): June 30 , 2017 December 31, 2016 United States $ 22,501 $ 18,818 Rest of the world 568 523 Total long-lived assets, net $ 23,068 $ 19,341 |
Note 8 - Fair Value Measurement
Note 8 - Fair Value Measurements | 6 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 8. Fair value is the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The multiple assumptions used to value financial instruments are referred to as inputs, and a hierarchy for inputs used in measuring fair value is established, that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity ’s pricing based upon its own market assumptions. These inputs are ranked according to a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three Level 1 Inputs are quoted prices in active markets for identical assets or liabilities. Level 2 Inputs are quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not Level 3 Inputs are derived from valuation techniques in which one The following table represents the Company ’s assets measured at fair value on a recurring basis as of June 30, 2017, Assets Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Money market mutual funds $ 26,522 $ 26,522 $ — $ — The following table represents the Company ’s assets measured at fair value on a recurring basis as of December 31, 2016, Assets Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Money market mutual funds $ 26,456 $ 26,456 $ — $ — The Company enters into foreign currency forward contracts to reduce the exposure to foreign currency exchange rate fluctuations on certain foreign currency denominated monetary assets and liabilities, primarily on third ’s hedging program is to reduce volatility of earnings related to foreign currency exchange rate fluctuations. The counterparty to these foreign currency forward contracts is a large global financial institution that the Company believes is creditworthy, and therefore, the Company believes the credit risk of counterparty nonperformance is not not three June 30, 2017 2016, $0.4 $0.3 six June 30, 2017 2016, $0.5 $8,000 The Company carries these derivatives financial instruments on its Consolidated Balance Sheets at their fair values. The Company ’s foreign currency forward contracts are classified as Level 2 not June 30, 2017, one $7.7 $48,000 December 31, 2016, one $6.9 $15,000 |
Note 9 - Commitments and Contin
Note 9 - Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 9. Leases The Company leases administrative and sales offices and certain equipment under noncancelable operating leases, which contain various renewal options and, in some cases, require payment of common area costs, taxes and utilities. These operating leases expire at various times through 2024. $0.6 both three June 30, 2017 2016, $1.1 $1.2 six June 30, 2017 2016. Future minimum lease payments under noncancelable operating leases at June 30, 2017, Period Ending June 30 , Amount 2017 (remaining six months) $ 936 2018 1,329 2019 448 2020 381 2021 297 2022 and thereafter 75 Total future minimum lease payments $ 3,466 Indemnifications — The Company generally provides a warranty to its customers that its software will perform substantially in accordance with documented specifications typically for a period of 90 third not Purchase obligations June 30, 2017, $8.1 12 Indemnification of Officers and Directors In addition, the Bylaws of the Company provide that the Company is required to indemnify its officers and directors even when indemnification would otherwise be discretionary, and the Company is required to advance expenses to its officers and directors as incurred in connection with proceedings against them for which they may may ’ and officers’ insurance if available on reasonable terms. The Company has obtained directors’ and officers’ liability insurance in amounts comparable to other companies of the Company’s size and in the Company’s industry. Since a maximum obligation of the Company is not Litigation — From time to time, the Company is subject to various claims and legal proceedings that arise in the ordinary course of business. The Company accrues for losses related to litigation when a potential loss is probable and the loss can be reasonably estimated in accordance with FASB requirements. As of June 30, 2017, not no no |
Note 10 - Subsequent Event
Note 10 - Subsequent Event | 6 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 10. On July 1 1, 2017, $4.5 $0.6 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The interim unaudited condensed consolidated financial statements included herein have been prepared by PDF Solutions, Inc. (the “Company”) pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), including the instructions to the Quarterly Report on Form 10 10 X. not may ’s Annual Report on Form 10 December 31, 2016. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries after the elimination of all intercompany balances and transactions. The condensed consolidated balance sheet at December 31, 2016, has been derived from the audited consolidated financial statements but does not |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates — The preparation of financial statements in conformity with generally accepted accounting principles in the United States (“U.S. GAAP”) 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 reporting period. Significant estimates in these financial statements include revenue recognition for fixed-price solution implementation service contracts, accounting for goodwill and intangible assets, stock-based compensation expense and accounting for income taxes. Actual results could differ from those estimates. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition — The Company derives revenue from two Design-to-silicon-yield solutions — Revenues that are derived from Design-to-silicon-yield solutions come from services and software and hardware licenses. The Company recognizes revenue for each element of Design-to-silicon-yield solutions as follows: The Company generates a significant portion of its Design-to-silicon-yield solutions revenue from fixed-price solution implementation service contracts delivered over a specific period of time. These contracts require reliable estimation of costs to perform obligations and the overall scope of each engagement. Revenue under project –based contracts for solution implementation services is recognized as services are performed using percentage of completion method of contract accounting based on costs or labor-hours input method, whichever is the most appropriate measure of the progress towards completion of the contract. Losses on fixed-price solution implementation contracts are recognized in the period when they become probable. Revisions in profit estimates are reflected in the period in which the conditions that require the revisions become known and can be estimated (cumulative catch-up method). Revenue under time and materials contracts for solution implementation services are recognized as the services are performed. On occasion, the Company licenses its software products as a component of its fixed-price service con tracts. In such instances, the software products are licensed to customers over a specified term of the agreement with support and maintenance to be provided, if applicable, over the license term. The amount of product and service revenue recognized in a given period is affected by the Company’s judgment as to whether an arrangement includes multiple deliverables and, if so, the Company’s determination of the fair value of each deliverable. In general, vendor-specific objective evidence of selling price (“VSOE”) does not not third not In some instances, the Company also licenses its DFI system as a separate component of fixed-price service contracts. The Company allocates revenue to all deliverables based on their relative selling prices. The Company currently does not The Company defers certain pre-contract costs incurred for specific anticipated contracts. Deferred costs consist primarily of direct costs to provide solution implementation services in relation to the specific anticipated contracts. The Company recognizes such costs as a component of cost of revenues, the timing of which is dependent upon persuasive evidence of contract arrangement assuming all other revenue recognition criteria are met. The Company also defers costs from arrangements that required us to defer the revenues, typically due to revenue recognition from multi-element arrangements or from contracts subject to customer acceptance. These costs are recognized in proportion to the related revenue. At the end of the reporting period, the Company evaluates its deferred costs for their probable recoverability. The Company recognizes impairment of deferred costs when it is determined that the costs no no $1.1 $0.5 June 30, 2017 December 31, 2016, The Company also licenses its software products separately from solution implementations. For software license arrangements that do not 2 3 4 5 not 1 2 3 Revenue from software-as-a-service (SaaS) that allow for the use of a hosted software product or service over a contractually determined period of time without taking possession of software are accounted for as subscriptions and recognized as revenue ratably over the coverage period beginning on the date the service is made available to customers. Revenue for software licenses with extended payment terms is not Deferred revenues consist substantially of amounts invoiced in advance of revenue recognition and is recognized as the revenue recognition criteria are met. Deferred revenues that will be recognized during the succeeding 12 $1.5 $1.5 June 30, 2017 December 31, 2016. Gainshare Performance Incentives — When the Company enters into a contract to provide yield improvement services, the contract usually includes two 1 2 may no |
Note 3 - Balance Sheet Compon17
Note 3 - Balance Sheet Components (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | June 30 , 2017 December 31, 2016 Property and equipment, net: Computer equipment $ 10,735 $ 10,642 Software 3,341 1,679 Furniture, fixtures and equipment 1,821 1,185 Leasehold improvements 1,972 1,132 Test equipment 12,597 11,723 Construction-in-progress 11,128 9,550 41,594 35,911 Less: accumulated depreciation (18,526 ) (16,570 ) Total $ 23,068 $ 19,341 |
Schedule of Goodwill [Table Text Block] | June 30 , 2017 Balance as of December 31, 2016 $ 215 Add: Goodwill from acquisition — Adjustment — Balance as of June 30, 2017 $ 215 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | June 30, 2017 December 31, 2016 Amortization Period (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Acquired identifiable intangibles: Customer relationships 1 - 9 $ 5,920 $ (3, 964 ) $ 1,956 $ 5,920 $ (3,825 ) $ 2,095 Developed technology 4 - 6 14,100 (12,551 ) 1,549 14,100 (12,359 ) 1,741 Tradename 2 - 4 610 (608 ) 2 610 (583 ) 27 Backlog 1 100 (100 ) - 100 (100 ) - Patent 7 - 10 1,800 (1,460 ) 340 1,800 (1,440 ) 360 Other acquired intangibles 4 255 (255 ) - 255 (255 ) - Total $ 22,785 $ (18,938 ) $ 3,847 $ 22,785 $ (18,562 ) $ 4,223 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Period Ending June 30 , 2017 (remaining 6 months) $ 353 2018 701 2019 701 2020 701 2021 526 2022 and thereafter 865 Total future amortization expense $ 3,847 |
Note 4 - Stockholders' Equity (
Note 4 - Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Notes Tables | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Cost of design-to-silicon yield-solutions $ 1,069 $ 956 $ 2,261 $ 2,041 Research and development 848 651 1,682 1,357 Selling, general and administrative 987 684 1,845 1,559 Stock-based compensation expenses $ 2,904 $ 2,291 $ 5,788 $ 4,957 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Expected life (in years) 4.41 4.42 4.41 4.42 Volatility 41.63 % 43.58 % 41.53 % 44.26 % Risk-free interest rate 1.67 % 1.30 % 1.69 % 1.25 % Expected dividend — — — — Weighted average fair value per share of options granted during the period $ 5.98 $ 5.00 $ 6.16 $ 4.46 Six Months Ended June 30 , 2017 2016 Expected life (in years) 1.25 1.25 Volatility 33.32 % 44.15 % Risk-free interest rate 0.93 % 0.50 % Expected dividend — — Weighted average fair value per share of options granted during the period $ 6.78 $ 3.56 |
Share-based Compensation, Stock Options, Activity [Table Text Block] | Number of Options (in thousands) Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) Outstanding, January 1, 2017 1,364 $ 8.00 Granted (weighted average fair value of $ 6.16 per share) 96 $ 17 Exercised (257 ) $ 7.04 Canceled (3 ) $ 17.80 Expired - $ - Outstanding, June 30, 2017 1,200 $ 8.89 4.78 $ 9,288 Vested and expected to vest, June 30, 2017 1,182 $ 8.78 4.71 $ 9,271 Exercisable, June 30, 2017 989 $ 7.42 3.86 $ 9,010 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | Shares (in thousands) Weighted Average Grant Date Fair Value Per Share Nonvested, January 1, 2017 1,542 $ 15.50 Granted 751 $ 16.56 Vested (317 ) $ 16.36 Forfeited (20 ) $ 15.70 Nonvested, June 30, 2017 1,956 $ 15.76 |
Note 6 - Net Income Per Share (
Note 6 - Net Income Per Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Numerator: Net income $ 189 $ 2,133 $ 706 $ 4,194 Denominator: Basic weighted average common shares outstanding 32,111 31,276 32,051 31,222 Dilutive effect of equity incentive plans 1,277 823 1,440 705 Diluted weighted average common shares outstanding 33,388 32,099 33,491 31,927 Net income per share: Basic $ 0.01 $ 0.07 $ 0.02 $ 0.13 Diluted $ 0.01 $ 0.07 $ 0.02 $ 0.13 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Outstanding options 102 230 79 264 Nonvested restricted stock units 13 348 4 798 Employee Stock Purchase Plan 27 — 29 230 Total 142 578 112 1,292 |
Note 7 - Customer and Geograp20
Note 7 - Customer and Geographic Information (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Notes Tables | |
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, Customer 2017 2016 2017 2016 A 36 % 39 % 42 % 44 % B 15 % * % 10 % * % C * % * % * % 12 % D * % 13 % * % * % |
Receivables by Major Customers [Table Text Block] | Customer June 30 , 2017 December 31, 2016 A 41 % 42 % B 19 % 13 % |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | Three Months Ended June 30 , 2017 2016 Revenues Percentage of Revenues Revenues Percentage of Revenues United States $ 9,226 38 % $ 9,518 36 % China 4,753 20 1,499 6 Taiwan 3,643 15 5,725 21 Germany 1,794 7 3,994 15 Rest of the world 4,873 20 5,952 22 Total revenue $ 24,289 100 % $ 26,688 100 % Six Months Ended June 30, 2017 2016 Revenues Percentage of Revenues Revenues Percentage of Revenues United States $ 20,860 43 % $ 21,640 42 % Taiwan 7,480 15 7,909 15 China 6,440 13 2,598 5 Germany 4,102 8 7,028 14 South Korea 3,620 7 5,497 11 Rest of the world 6,076 14 7,097 13 Total revenue $ 48,578 100 % $ 51,769 100 % |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block] | June 30 , 2017 December 31, 2016 United States $ 22,501 $ 18,818 Rest of the world 568 523 Total long-lived assets, net $ 23,068 $ 19,341 |
Note 8 - Fair Value Measureme21
Note 8 - Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Notes Tables | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Assets Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Money market mutual funds $ 26,522 $ 26,522 $ — $ — Assets Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Money market mutual funds $ 26,456 $ 26,456 $ — $ — |
Note 9 - Commitments and Cont22
Note 9 - Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Period Ending June 30 , Amount 2017 (remaining six months) $ 936 2018 1,329 2019 448 2020 381 2021 297 2022 and thereafter 75 Total future minimum lease payments $ 3,466 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation (Details Textual) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Deferred Pre-contract Costs | $ 1.1 | $ 0.5 |
Other Noncurrent Liabilities [Member] | ||
Deferred Revenue, Noncurrent | $ 1.5 | $ 1.5 |
Note 3 - Balance Sheet Compon24
Note 3 - Balance Sheet Components (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Unbilled Receivables, Current | $ 21,000 | $ 21,000 | $ 20,800 | ||
Unbilled Receivables, Not Billable, Amount Expected to be Collected after Next Twelve Months | 9,700 | 9,700 | 9,800 | ||
Deferred Pre-contract Costs | 1,100 | $ 1,100 | 500 | ||
Finite-Lived Intangible Assets, Remaining Amortization Period | 5 years 354 days | ||||
Amortization of Intangible Assets | 200 | $ 200 | $ 376 | $ 425 | |
Impairment of Intangible Assets, Finite-lived | 0 | 0 | 0 | 0 | |
Depreciation, Depletion and Amortization, Nonproduction | 1,200 | $ 900 | 2,300 | $ 1,600 | |
Goodwill | 215 | 215 | 215 | ||
Finite-Lived Intangible Assets, Net | $ 3,847 | $ 3,847 | $ 4,223 |
Note 3 - Balance Sheet Compon25
Note 3 - Balance Sheet Components - Property and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Property and equipment, gross | $ 41,594 | $ 35,911 |
Less: accumulated depreciation | (18,526) | (16,570) |
Total | 23,068 | 19,341 |
Computer Equipment [Member] | ||
Property and equipment, gross | 10,735 | 10,642 |
Software and Software Development Costs [Member] | ||
Property and equipment, gross | 3,341 | 1,679 |
Furniture and Fixtures [Member] | ||
Property and equipment, gross | 1,821 | 1,185 |
Leasehold Improvements [Member] | ||
Property and equipment, gross | 1,972 | 1,132 |
Test Equipment [Member] | ||
Property and equipment, gross | 12,597 | 11,723 |
Construction in Progress [Member] | ||
Property and equipment, gross | $ 11,128 | $ 9,550 |
Note 3 - Balance Sheet Compon26
Note 3 - Balance Sheet Components - Goodwill Activity (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Balance | $ 215 |
Add: Goodwill from acquisition | 0 |
Adjustment | 0 |
Balance | $ 215 |
Note 3 - Balance Sheet Compon27
Note 3 - Balance Sheet Components - Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Gross Carrying Amount | $ 22,785 | $ 22,785 |
Accumulated Amortization | (18,938) | (18,562) |
Intangible assets, net | 3,847 | 4,223 |
Customer Relationships [Member] | ||
Gross Carrying Amount | 5,920 | 5,920 |
Accumulated Amortization | (3,964) | (3,825) |
Intangible assets, net | $ 1,956 | 2,095 |
Customer Relationships [Member] | Minimum [Member] | ||
Amortization Period (Year) | 1 year | |
Customer Relationships [Member] | Maximum [Member] | ||
Amortization Period (Year) | 9 years | |
Developed Technology Rights [Member] | ||
Gross Carrying Amount | $ 14,100 | 14,100 |
Accumulated Amortization | (12,551) | (12,359) |
Intangible assets, net | $ 1,549 | 1,741 |
Developed Technology Rights [Member] | Minimum [Member] | ||
Amortization Period (Year) | 4 years | |
Developed Technology Rights [Member] | Maximum [Member] | ||
Amortization Period (Year) | 6 years | |
Trade Names [Member] | ||
Gross Carrying Amount | $ 610 | 610 |
Accumulated Amortization | (608) | (583) |
Intangible assets, net | $ 2 | 27 |
Trade Names [Member] | Minimum [Member] | ||
Amortization Period (Year) | 2 years | |
Trade Names [Member] | Maximum [Member] | ||
Amortization Period (Year) | 4 years | |
Order or Production Backlog [Member] | ||
Amortization Period (Year) | 1 year | |
Gross Carrying Amount | $ 100 | 100 |
Accumulated Amortization | (100) | (100) |
Intangible assets, net | ||
Patents [Member] | ||
Gross Carrying Amount | 1,800 | 1,800 |
Accumulated Amortization | (1,460) | (1,440) |
Intangible assets, net | $ 340 | 360 |
Patents [Member] | Minimum [Member] | ||
Amortization Period (Year) | 7 years | |
Patents [Member] | Maximum [Member] | ||
Amortization Period (Year) | 10 years | |
Other Intangible Assets [Member] | ||
Amortization Period (Year) | 4 years | |
Gross Carrying Amount | $ 255 | 255 |
Accumulated Amortization | (255) | (255) |
Intangible assets, net |
Note 3 - Balance Sheet Compon28
Note 3 - Balance Sheet Components - Annual Amortization of Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
2017 (remaining 6 months) | $ 353 | |
2,018 | 701 | |
2,019 | 701 | |
2,020 | 701 | |
2,021 | 526 | |
2022 and thereafter | 865 | |
Total future amortization expense | $ 3,847 | $ 4,223 |
Note 4 - Stockholders' Equity29
Note 4 - Stockholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Millions | Oct. 25, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 0.2 | |||||
Stock Repurchase Program, Authorized Amount | $ 25 | |||||
Stock Repurchase Program, Period in Force | 2 years | |||||
Treasury Stock, Shares, Acquired | 276,279 | 276,279 | ||||
Treasury Stock Acquired, Average Cost Per Share | $ 17.27 | |||||
Treasury Stock, Value, Acquired, Cost Method | $ 4.8 | |||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 20.2 | $ 20.2 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 3,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 1,200,000 | 1,200,000 | 1,364,000 | |||
Share Price | $ 16.45 | $ 16.45 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 3.1 | |||||
Employee Stock Option [Member] | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 1 | $ 1 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years 146 days | |||||
Restricted Stock Units (RSUs) [Member] | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 26.1 | $ 26.1 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years | |||||
Twenty Eleven Stock Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 9,050,000 | 9,050,000 | ||||
Share Based Compensation Arrangement By Share Based Payment Award Shares Reserved Decrease Rate | 1.33 | |||||
Common Stock, Capital Shares Reserved for Future Issuance | 9,600,000 | 9,600,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 2,500,000 | 2,500,000 | ||||
Twenty Eleven Stock Incentive Plan [Member] | Employee Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||||
Shares Previously Issued Under the 2001 Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 3,500,000 | 3,500,000 | ||||
IDS Plan [Member] | Employee Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||||
Two Thousand One Stock Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 500,000 | |||||
Outside of the 2011, 2001 or IDS Plans [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 0 | 0 | ||||
Employee Stock Purchase Plan [Member] | ||||||
Number Of ESPP Shares Available For Future Issuance | 4,400,000 | 4,400,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Employee Subscription Rate | 10.00% | 10.00% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 85.00% | |||||
ESPP Maximum Annual Share Replenishment | 675,000 | |||||
ESPP Maximum Annual Share Replenishment Percentage of Prior Year Outstanding Company Common Stock | 2.00% | |||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 0 | 0 | 100,000 | 84,000 | ||
Employee Stock Purchase Plan Weighted Average Purchase Price of Shares Purchased | $ 9.13 | $ 9.21 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 0.6 | $ 0.6 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 324 days | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years |
Note 4 - Stockholders' Equity -
Note 4 - Stockholders' Equity - Allocation of Recognized Period Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Allocation of recognized period costs | $ 2,904 | $ 2,291 | $ 5,788 | $ 4,957 |
Cost of Sales [Member] | ||||
Allocation of recognized period costs | 1,069 | 956 | 2,261 | 2,041 |
Research and Development Expense [Member] | ||||
Allocation of recognized period costs | 848 | 651 | 1,682 | 1,357 |
Selling, General and Administrative Expenses [Member] | ||||
Allocation of recognized period costs | $ 987 | $ 684 | $ 1,845 | $ 1,559 |
Note 4 - Stockholders' Equity31
Note 4 - Stockholders' Equity - Stock Options, Valuation Assumptions (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Weighted average fair value (in dollars per share) | $ 6.16 | |||
Employee Stock Purchase Plan [Member] | ||||
Volatility | 33.32% | 44.15% | ||
Risk-free interest rate | 0.93% | 0.50% | ||
Expected dividend | ||||
Weighted average fair value (in dollars per share) | $ 6.78 | $ 3.56 | ||
Expected life (Year) | 1 year 91 days | 1 year 91 days | ||
Stock Plans [Member] | ||||
Volatility | 41.63% | 43.58% | 41.53% | 44.26% |
Risk-free interest rate | 1.67% | 1.30% | 1.69% | 1.25% |
Expected dividend | 0.00% | 0.00% | ||
Weighted average fair value (in dollars per share) | $ 5.98 | $ 5 | $ 6.16 | $ 4.46 |
Expected life (Year) | 4 years 149 days | 4 years 153 days | 4 years 149 days | 4 years 153 days |
Note 4 - Stockholders' Equity32
Note 4 - Stockholders' Equity - Stock Options Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($)$ / sharesshares | |
Outstanding, January 1, 2017 (in shares) | shares | 1,364 |
Outstanding, January 1, 2017 (in dollars per share) | $ / shares | $ 8 |
Granted (in shares) | shares | 96 |
Granted (in dollars per share) | $ / shares | $ 17 |
Exercised (in shares) | shares | (257) |
Exercised (in dollars per share) | $ / shares | $ 7.04 |
Canceled (in shares) | shares | (3) |
Canceled (in dollars per share) | $ / shares | $ 17.80 |
Expired (in shares) | shares | |
Outstanding, June 30, 2017 (in dollars per share) | $ / shares | $ 8.89 |
Outstanding, June 30, 2017 (Year) | 4 years 284 days |
Outstanding, June 30, 2017 | $ | $ 9,288 |
Vested and expected to vest, June 30, 2017 (in shares) | shares | 1,182 |
Vested and expected to vest, June 30, 2017 (in dollars per share) | $ / shares | $ 8.78 |
Vested and expected to vest, June 30, 2017 (Year) | 4 years 259 days |
Vested and expected to vest, June 30, 2017 | $ | $ 9,271 |
Exercisable, June 30, 2017 (in shares) | shares | 989 |
Exercisable, June 30, 2017 (in dollars per share) | $ / shares | $ 7.42 |
Expired (in dollars per share) | $ / shares | |
Outstanding, June 30, 2017 (in shares) | shares | 1,200 |
Exercisable, June 30, 2017 (Year) | 3 years 313 days |
Exercisable, June 30, 2017 | $ | $ 9,010 |
Note 4 - Stockholders' Equity33
Note 4 - Stockholders' Equity - Stock Options Activity (Details) (Parentheticals) | 6 Months Ended |
Jun. 30, 2017$ / shares | |
Weighted average fair value (in dollars per share) | $ 6.16 |
Note 4 - Stockholders' Equity34
Note 4 - Stockholders' Equity - Nonvested Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs) [Member] shares in Thousands | 6 Months Ended |
Jun. 30, 2017$ / sharesshares | |
Nonvested, Balance (in shares) | shares | 1,542 |
Nonvested, Balance (in dollars per share) | $ / shares | $ 15.50 |
Nonvested, Balance (in dollars per share) | $ / shares | $ 15.76 |
Granted (in shares) | shares | 751 |
Granted (in dollars per share) | $ / shares | $ 16.56 |
Vested (in shares) | shares | (317) |
Vested (in dollars per share) | $ / shares | $ 16.36 |
Forfeited (in shares) | shares | (20) |
Forfeited (in dollars per share) | $ / shares | $ 15.70 |
Nonvested, Balance (in shares) | shares | 1,956 |
Note 5 - Income Taxes (Details
Note 5 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Increase (Decrease) in Income Taxes | $ (4,600) | ||||
Income Tax Expense (Benefit) | $ (815) | $ 1,579 | $ (1,976) | $ 2,605 | |
Effective Income Tax Rate Reconciliation, Percent | 155.60% | 38.30% | |||
Unrecognized Tax Benefits | 11,500 | $ 11,500 | $ 11,900 | ||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 6,900 | 6,900 | 7,200 | ||
Unrecognized Tax Benefits In Long Term Liabilities | 2,600 | 2,600 | |||
Unrecognized Tax Benefits In Deferred Tax Assets | 9,300 | 9,300 | |||
Unrecognized Tax Benefits In Deferred Tax Asset Subject To Full Valuation Allowance | 4,600 | 4,600 | |||
Deferred Tax Assets, Valuation Allowance | $ 6,500 | 6,500 | $ 6,800 | ||
Accounting Standards Update 2016-09 [Member] | |||||
Excess Tax Benefit from Share-based Compensation | $ 1,100 |
Note 6 - Net Income Per Share -
Note 6 - Net Income Per Share - Calculation of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net income | $ 189 | $ 2,133 | $ 706 | $ 4,194 |
Basic weighted average common shares outstanding (in shares) | 32,111 | 31,276 | 32,051 | 31,222 |
Dilutive effect of equity incentive plans (in shares) | 1,277 | 823 | 1,440 | 705 |
Diluted weighted average common shares outstanding (in shares) | 33,388 | 32,099 | 33,491 | 31,927 |
Basic (in dollars per share) | $ 0.01 | $ 0.07 | $ 0.02 | $ 0.13 |
Diluted (in dollars per share) | $ 0.01 | $ 0.07 | $ 0.02 | $ 0.13 |
Note 6 - Net Income Per Share37
Note 6 - Net Income Per Share - Antidilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Antidilutive securities (in shares) | 142 | 578 | 112 | 1,292 |
Employee Stock Option [Member] | ||||
Antidilutive securities (in shares) | 102 | 230 | 79 | 264 |
Restricted Stock Units (RSUs) [Member] | ||||
Antidilutive securities (in shares) | 13 | 348 | 4 | 798 |
Employee Stock Purchase Plan [Member] | ||||
Antidilutive securities (in shares) | 27 | 29 | 230 |
Note 7 - Customer and Geograp38
Note 7 - Customer and Geographic Information (Details Textual) | 6 Months Ended |
Jun. 30, 2017 | |
Number of Operating Segments | 1 |
Note 7 - Customer and Geograp39
Note 7 - Customer and Geographic Information - Revenue Percentage by Major Customers (Details) - Customer Concentration Risk [Member] - Sales Revenue, Net [Member] | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||||||
Customer A [Member] | |||||||||
Receivables percentage by major customer | 36.00% | 39.00% | 42.00% | 44.00% | |||||
Customer B [Member] | |||||||||
Receivables percentage by major customer | 15.00% | [1] | 10.00% | [1] | |||||
Customer C [Member] | |||||||||
Receivables percentage by major customer | [1] | [1] | [1] | 12.00% | |||||
Customer D [Member] | |||||||||
Receivables percentage by major customer | [1] | 13.00% | |||||||
[1] | represents less than 10% |
Note 7 - Customer and Geograp40
Note 7 - Customer and Geographic Information - Receivables Percentage by Major Customers (Details) - Customer Concentration Risk [Member] - Accounts Receivable [Member] | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Customer A [Member] | ||
Receivables percentage by major customer | 41.00% | 42.00% |
Customer B [Member] | ||
Receivables percentage by major customer | 19.00% | 13.00% |
Note 7 - Customer and Geograp41
Note 7 - Customer and Geographic Information - Revenues by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenues | $ 24,289 | $ 26,688 | $ 48,578 | $ 51,769 |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | ||||
Percentage of Revenues | 100.00% | 100.00% | 100.00% | 100.00% |
Revenues | $ 24,289 | $ 26,688 | $ 48,578 | $ 51,769 |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | UNITED STATES | ||||
Percentage of Revenues | 38.00% | 36.00% | 43.00% | 42.00% |
Revenues | $ 9,226 | $ 9,518 | $ 20,860 | $ 21,640 |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | CHINA | ||||
Percentage of Revenues | 20.00% | 6.00% | 13.00% | 5.00% |
Revenues | $ 4,753 | $ 1,499 | $ 6,440 | $ 2,598 |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | TAIWAN, PROVINCE OF CHINA | ||||
Percentage of Revenues | 15.00% | 21.00% | 15.00% | 15.00% |
Revenues | $ 3,643 | $ 5,725 | $ 7,480 | $ 7,909 |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | GERMANY | ||||
Percentage of Revenues | 7.00% | 15.00% | 8.00% | 14.00% |
Revenues | $ 1,794 | $ 3,994 | $ 4,102 | $ 7,028 |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Rest of the World [Member] | ||||
Percentage of Revenues | 20.00% | 22.00% | 14.00% | 13.00% |
Revenues | $ 4,873 | $ 5,952 | $ 6,076 | $ 7,097 |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | KOREA, REPUBLIC OF | ||||
Percentage of Revenues | 7.00% | 11.00% | ||
Revenues | $ 3,620 | $ 5,497 |
Note 7 - Customer and Geograp42
Note 7 - Customer and Geographic Information - Long-lived Assets by Geographic Area (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Long-lived assets | $ 23,068 | $ 19,341 |
UNITED STATES | ||
Long-lived assets | 22,501 | 18,818 |
Rest of the World [Member] | ||
Long-lived assets | $ 568 | $ 523 |
Note 8 - Fair Value Measureme43
Note 8 - Fair Value Measurements (Details Textual) - Foreign Exchange Contract [Member] - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Derivative Asset, Notional Amount | $ 7,700,000 | $ 7,700,000 | $ 6,900,000 | ||
Other Current Liabilities [Member] | |||||
Derivative Liability, Current | 48,000 | 48,000 | $ 15,000 | ||
Other Nonoperating Income (Expense) [Member] | |||||
Derivative, Gain (Loss) on Derivative, Net | $ 400,000 | $ (300,000) | $ 500,000 | $ 8,000 |
Note 8 - Fair Value Measureme44
Note 8 - Fair Value Measurements - Fair Value, Assets Measured on a Recurring Basis (Details) - Money Market Funds [Member] - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Money market mutual funds | $ 26,522 | $ 26,456 |
Fair Value, Inputs, Level 1 [Member] | ||
Money market mutual funds | 26,522 | 26,456 |
Fair Value, Inputs, Level 2 [Member] | ||
Money market mutual funds | ||
Fair Value, Inputs, Level 3 [Member] | ||
Money market mutual funds |
Note 9 - Commitments and Cont45
Note 9 - Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Operating Leases, Rent Expense, Net | $ 600 | $ 600 | $ 1,100 | $ 1,200 |
Purchase Obligation, Due in Next Twelve Months | 8,100 | 8,100 | ||
Loss Contingency Accrual | $ 0 | $ 0 |
Note 9 - Commitments and Cont46
Note 9 - Commitments and Contingencies - Future Minimum Lease Payments Under Noncancelable Operating Leases (Details) $ in Thousands | Jun. 30, 2017USD ($) |
2017 (remaining six months) | $ 936 |
2,018 | 1,329 |
2,019 | 448 |
2,020 | 381 |
2,021 | 297 |
2022 and thereafter | 75 |
Total future minimum lease payments | $ 3,466 |
Note 10 - Subsequent Event (Det
Note 10 - Subsequent Event (Details Textual) - Kinesys Software [Member] - Subsequent Event [Member] $ in Millions | Jul. 11, 2017USD ($) |
Business Combination, Consideration Transferred | $ 4.5 |
Business Combination, Earn-out in Cash Payable upon Certain Milestones | $ 0.6 |