Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 31, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | FLDM | |
Entity Registrant Name | FLUIDIGM CORPORATION | |
Entity Central Index Key | 1,162,194 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding (shares) | 39,163,532 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 39,424 | $ 58,056 |
Short-term investments | 996 | 5,080 |
Accounts receivable (net of allowances of $13 at June 30, 2018 and $391 at December 31, 2017) | 16,874 | 15,049 |
Inventories | 15,251 | 15,088 |
Prepaid expenses and other current assets | 2,702 | 1,528 |
Total current assets | 75,247 | 94,801 |
Property and equipment, net | 10,424 | 12,301 |
Other non-current assets | 6,324 | 7,541 |
Developed technology, net | 63,000 | 68,600 |
Goodwill | 104,108 | 104,108 |
Total assets | 259,103 | 287,351 |
Current liabilities: | ||
Accounts payable | 6,642 | 4,211 |
Accrued compensation and related benefits | 11,880 | 10,535 |
Other accrued liabilities | 7,372 | 8,490 |
Deferred revenue, current | 10,756 | 10,238 |
Total current liabilities | 36,650 | 33,474 |
Convertible notes, net | 166,758 | 195,238 |
Deferred tax liability, net | 14,068 | 16,919 |
Deferred revenue, non-current | 4,790 | 4,960 |
Other non-current liabilities | 2,004 | 5,825 |
Total liabilities | 224,270 | 256,416 |
Commitments and contingencies (see Note 8) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value, 10,000 shares authorized, no shares issued and outstanding at June 30, 2018 and December 31, 2017 | 0 | 0 |
Common stock, $0.001 par value, 200,000 shares authorized at June 30, 2018 and December 31, 2017; 39,155 and 38,787 shares issued and outstanding as of June 30, 2018 and December 31, 2017, respectively | 39 | 39 |
Additional paid-in capital | 564,623 | 531,666 |
Accumulated other comprehensive loss | (504) | (574) |
Accumulated deficit | (529,325) | (500,196) |
Total stockholders’ equity | 34,833 | 30,935 |
Total liabilities and stockholders’ equity | $ 259,103 | $ 287,351 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Accounts receivable, allowances | $ 13 | $ 391 |
Stockholders’ equity: | ||
Preferred stock, par value (usd per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Preferred stock, shares outstanding (shares) | 0 | 0 |
Common stock, par value (usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (shares) | 39,155,000 | 38,787,000 |
Common stock, shares outstanding (shares) | 39,155,000 | 38,787,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue: | ||||
Product revenue | $ 21,777 | $ 19,500 | $ 42,254 | $ 40,807 |
Service revenue | 4,651 | 4,319 | 9,422 | 8,486 |
License revenue | 0 | 93 | 0 | 152 |
Total revenue | 26,428 | 23,912 | 51,676 | 49,445 |
Costs and expenses: | ||||
Cost of product revenue | 11,160 | 10,794 | 21,382 | 21,644 |
Cost of service revenue | 1,680 | 1,169 | 3,278 | 2,288 |
Research and development | 7,386 | 7,461 | 14,642 | 15,986 |
Selling, general and administrative | 18,987 | 20,975 | 37,792 | 43,551 |
Total costs and expenses | 39,213 | 40,399 | 77,094 | 83,469 |
Loss from operations | (12,785) | (16,487) | (25,418) | (34,024) |
Interest expense | (3,916) | (1,456) | (5,805) | (2,911) |
Other income, net | 256 | 183 | 348 | 193 |
Loss before income taxes | (16,445) | (17,760) | (30,875) | (36,742) |
Income tax benefit | 204 | 827 | 1,387 | 2,608 |
Net loss | $ (16,241) | $ (16,933) | $ (29,488) | $ (34,134) |
Net loss per share, basic and diluted (usd per share) | $ (0.42) | $ (0.58) | $ (0.76) | $ (1.17) |
Shares used in computing net loss per share, basic and diluted (shares) | 39,003 | 29,344 | 38,930 | 29,292 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (16,241) | $ (16,933) | $ (29,488) | $ (34,134) |
Other comprehensive income, net of tax: | ||||
Foreign currency translation adjustment | 26 | 76 | 69 | 110 |
Net change in unrealized gain on investments | 2 | 1 | 1 | 2 |
Other comprehensive income, net of tax | 28 | 77 | 70 | 112 |
Comprehensive loss | $ (16,213) | $ (16,856) | $ (29,418) | $ (34,022) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Operating activities | ||
Net loss | $ (29,488) | $ (34,134) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 6,015 | 4,088 |
Stock-based compensation expense | 3,754 | 4,775 |
Amortization of developed technology | 5,600 | 5,600 |
Other non-cash items | (41) | (417) |
Changes in assets and liabilities: | ||
Accounts receivable, net | (1,814) | 921 |
Inventories | (571) | 1,122 |
Prepaid expenses and other current assets | (1,016) | (2,169) |
Other non-current assets | 821 | 1,388 |
Accounts payable | 2,445 | 248 |
Deferred revenue | 368 | (416) |
Other current liabilities | 99 | 4,879 |
Other non-current liabilities | (6,671) | (2,663) |
Net cash used in operating activities | (20,499) | (16,778) |
Investing activities | ||
Purchases of investments | (1,451) | (1,452) |
Proceeds from sales and maturities of investments | 5,541 | 23,375 |
Purchases of property and equipment | (154) | (834) |
Net cash provided by investing activities | 3,936 | 21,089 |
Financing activities | ||
Payment of debt issuance costs | (2,638) | 0 |
Net proceeds from issuance of common stock | 562 | 0 |
Proceeds from exercise of stock options | 24 | 44 |
Payments for taxes related to net share settlement of equity awards | (100) | (90) |
Net cash used in financing activities | (2,152) | (46) |
Effect of foreign exchange rate fluctuations on cash and cash equivalents | 83 | 287 |
Net (decrease) / increase in cash and cash equivalents | (18,632) | 4,552 |
Cash and cash equivalents at beginning of period | 58,056 | 35,045 |
Cash and cash equivalents at end of period | $ 39,424 | $ 39,597 |
Description of Business
Description of Business | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Fluidigm Corporation (we, our, or us) was incorporated in the State of California in May 1999, to commercialize microfluidic technology initially developed at the California Institute of Technology. In July 2007, we were reincorporated in Delaware. Our headquarters are located in South San Francisco, California. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP), and following the requirements of the Securities and Exchange Commission (SEC) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP have been condensed or omitted, and accordingly the balance sheet as of December 31, 2017 , has been derived from audited consolidated financial statements at that date but does not include all disclosures required by U.S. GAAP for complete financial statements. These financial statements have been prepared on the same basis as our annual financial statements and, in the opinion of management, reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for a fair statement of our financial information. The results of operations for the three and six months ended June 30, 2018 are not necessarily indicative of the results to be expected for the year ending December 31, 2018 , or for any other interim period or for any other future year. All intercompany transactions and balances have been eliminated in consolidation. The preparation of these condensed consolidated financial statements requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. We base our estimates on historical experience and on various other assumptions believed to be reasonable, which together form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ materially from these estimates and could have a material adverse effect on our condensed consolidated financial statements. The accompanying condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the accompanying notes in Item 8 of Part II, "Financial Statements and Supplementary Data," for the year ended December 31, 2017 , included in our Annual Report on Form 10-K. Certain prior period amounts in the condensed consolidated statements of cash flows have been reclassified to conform to the current period presentation. These reclassifications were immaterial and did not affect prior period total assets, total liabilities, stockholders' equity, total revenue, total costs and expenses, loss from operations or net loss. Net Loss per Share Our basic and diluted net loss per share is calculated by dividing net loss by the weighted-average number of shares of common stock outstanding for the period. Restricted stock units, options to purchase common stock, and shares associated with the potential conversion of our convertible notes are considered to be potentially dilutive common shares but have been excluded from the calculation of diluted net loss per share as their effect is anti-dilutive for all periods presented. The following potentially dilutive common shares were excluded from the computation of diluted net loss per share for the three and six months ended June 30, 2018 , and 2017 because including them would have been anti-dilutive (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Stock options, restricted stock units and performance awards 4,586 4,528 4,586 4,528 2018 Convertible Notes 19,036 — 19,036 — 2018 Convertible Notes potential make-whole shares at June 30, 2018 1,204 — 1,204 — 2014 Convertible Notes 916 3,598 916 3,598 Total 25,742 8,126 25,742 8,126 Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss, net of tax, for the three and six months ended June 30, 2018 , are as follows (in thousands): Foreign Currency Translation Adjustment Net Unrealized Gain on Securities Accumulated Other Comprehensive Loss Balance at December 31, 2017 $ (575 ) $ 1 $ (574 ) Other comprehensive income (loss) 43 (1 ) 42 Balance at March 31, 2018 (532 ) — (532 ) Other comprehensive income 26 2 28 Balance at June 30, 2018 $ (506 ) $ 2 $ (504 ) Immaterial amounts of unrealized gains and losses have been reclassified into the condensed consolidated statement of operations for the three and six months ended June 30, 2018 . Goodwill, Intangible Assets, and Other Long-lived Assets Goodwill and intangible assets with indefinite lives are not subject to amortization but are tested for impairment on an annual basis during the fourth quarter or whenever events or changes in circumstances indicate the carrying amount of these assets may not be recoverable. We first assess qualitative factors to determine whether it is more likely than not that the fair value of our reporting unit is less than its carrying amount. If we determine that it is more likely than not that the fair value of our reporting unit is less than its carrying amount, we then conduct a two-step test for impairment of goodwill. In the first step, we compare the fair value of our reporting unit to its carrying value. If the fair value of our reporting unit exceeds its carrying value, goodwill is not considered impaired and no further analysis is required. If the carrying value of the reporting unit exceeds its fair value, then the second step of the impairment test must be performed in order to determine the implied fair value of the goodwill. If the carrying value of the goodwill exceeds its implied fair value, then an impairment loss equal to the difference would be recorded. We evaluate our finite-lived intangible assets and other long-lived assets for indicators of possible impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If any indicator of impairment exists, we assess the recoverability of the affected asset by determining whether the carrying value of the asset can be recovered through undiscounted future operating cash flows. If impairment is indicated, we estimate the asset’s fair value using future discounted cash flows associated with the use of the asset and adjust the carrying value of the asset accordingly. Convertible Notes In February 2014, we closed an underwritten public offering $201.3 million aggregate principal amount of our 2.75% Senior Convertible Notes due 2034 (2014 Notes). In March 2018, we entered into separate privately negotiated transactions with certain holders of our 2014 Notes to exchange $150.0 million in aggregate principal amount of the 2014 Notes for our new 2.75% Exchange Convertible Senior Notes due 2034 (2018 Notes). Following the exchange, approximately $51.3 million in aggregate principal amount of the 2014 Notes remain outstanding in addition to $150.0 million in aggregate principal amount of the 2018 Notes. See Footnote 4. Convertible Notes for the accounting treatment of the transaction and additional information about the exchange. Recent Accounting Changes and Accounting Pronouncements Adoption of New Accounting Guidance In May 2014, the FASB issued ASU 2014-09 Revenue from Contracts with Customers (Topic 606). Topic 606 and its related amendments supersede Revenue Recognition (Topic 605), issued in June 2010, and provide principles for recognizing revenue for goods and services in a manner consistent with the transfer of control of those goods and services to the customer. We adopted Topic 606 on January 1, 2018, using the modified retrospective method applied to those contracts with unrecognized revenue on the adoption date. We recognized the effect of applying the new revenue standard by recording a cumulative catch-up adjustment that reduced the accumulated deficit component of stockholders’ equity by $0.4 million and increased current assets by $0.2 million and non-current assets by $0.2 million . The adjustment capitalized certain sales commission costs that were incurred to obtain instrument service contracts. Under Topic 605, we accounted for these incremental contract acquisition costs by recognizing them as expense at the point the contract was awarded. Under Topic 606, the costs are capitalized and amortized to expense over the life of the contract, which is generally one to three years. The comparative information for periods prior to January 1, 2018, has not been restated and continues to be reported in accordance with Topic 605. The following table summarizes the cumulative effect of adopting Topic 606 on amounts previously reported in our consolidated balance sheet at December 31, 2017 (in thousands): Balance at December 31, 2017 Topic 606 Transition Adjustments Balance at January 1, 2018 Prepaid expenses and other current assets $ 1,528 $ 153 $ 1,681 Total current assets $ 94,801 $ 153 $ 94,954 Other non-current assets $ 7,541 $ 205 $ 7,746 Total assets $ 287,351 $ 358 $ 287,709 Accumulated deficit $ (500,196 ) $ 358 $ (499,838 ) Total stockholders' equity $ 30,935 $ 358 $ 31,293 Total liabilities and stockholders' equity $ 287,351 $ 358 $ 287,709 The following table summarizes the impacts on our condensed consolidated statements of operations of adopting Topic 606 compared to Topic 605 for the three and six months ended June 30, 2018 (in thousands): As Reported Balance Without Adoption of Topic 606 Effect of Change As Reported Balance Without Adoption of Topic 606 Effect of Change Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Selling, general and administrative $ 18,987 $ 19,004 $ (17 ) $ 37,792 $ 37,842 $ (50 ) Total costs and expenses $ 39,213 $ 39,230 $ (17 ) $ 77,094 $ 77,144 $ (50 ) Loss from operations $ (12,785 ) $ (12,802 ) $ 17 $ (25,418 ) $ (25,468 ) $ 50 Loss before income taxes $ (16,445 ) $ (16,462 ) $ 17 $ (30,875 ) $ (30,925 ) $ 50 Net loss $ (16,241 ) $ (16,258 ) $ 17 $ (29,488 ) $ (29,538 ) $ 50 The following table summarizes the impacts on our condensed consolidated balance sheets of adopting Topic 606 compared to Topic 605 at June 30, 2018 (in thousands): As Reported Balance Without Adoption of Topic 606 Effect of Change June 30, 2018 Prepaid expenses and other current assets $ 2,702 $ 2,532 $ 170 Total current assets $ 75,247 $ 75,077 $ 170 Other non-current assets $ 6,324 $ 6,086 $ 238 Total assets $ 259,103 $ 258,695 $ 408 Stockholders' equity $ 34,833 $ 34,425 $ 408 Total liabilities and stockholders' equity $ 259,103 $ 258,695 $ 408 In August 2016, the FASB issued ASU 2016-15 Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The ASU addresses eight specific cash flow issues and their presentation within the statement of cash flows. We adopted this ASU in the first quarter of 2018. The adoption of this ASU did not have a material impact on our condensed consolidated financial statements. In November 2016, the FASB issued ASU 2016-18 Statement of Cash Flows (Topic 230): Restricted Cash, a consensus of the FASB’s Emerging Issues Task Force, amending the presentation of restricted cash within the statement of cash flows. The new guidance requires that restricted cash be included within cash and cash equivalents on the statement of cash flows. We adopted this ASU in the first quarter of 2018. The adoption of this ASU did not have a material impact on our condensed consolidated financial statements. Recent Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02 Leases (Topic 842). This ASU requires lessees to recognize a right-of-use asset and a lease liability on the balance sheet for all leases except short-term leases. For lessees, leases will continue to be classified as either operating or finance leases in the income statement. Lessor accounting under this ASU is similar to the current model but updated to align with certain changes to the lessee model. Lessors will continue to classify leases as operating, direct financing or sales-type leases. ASU 2016-02 will be effective for our fiscal year beginning January 1, 2019, and early adoption is permitted. We are currently evaluating the effect that the updated standard will have on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The ASU eliminates the requirement for an entity to calculate the implied fair value of goodwill to measure a goodwill impairment charge. Instead, an entity performs its annual, or interim, goodwill impairment testing by comparing the fair value of a reporting unit with its carrying amount and recording an impairment charge for the amount by which the carrying amount exceeds the fair value. The ASU will be effective for annual and interim goodwill impairment testing performed for our fiscal year beginning January 1, 2020, with early adoption permitted. We are currently evaluating the effect that the updated standard will have on our consolidated financial statements. In February 2018, the FASB issued ASU 2018-02 Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This ASU amends the reporting of comprehensive income to allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (the Tax Act). The Tax Act was enacted in December 2017 and reduced the U.S federal corporate income tax rate and made other changes to U.S. federal tax law. ASU 2018-02 will be effective for our fiscal year beginning January 1, 2019, and early adoption is permitted. We are currently evaluating the accounting, transition, and disclosure requirements of the standard. We are currently evaluating the effect that the updated standard will have on our consolidated financial statements. In March 2018, the FASB issued ASU No. 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118. This ASU allows SEC reporting companies to record provisional amounts in earnings for the year ended December 31, 2017, due to the complexities involved in accounting for the enactment of the Tax Act. The Company recognized the estimated income tax effects of the Tax Act in its 2017 Consolidated Financial Statements in |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue We generate revenue primarily from the sale of our products and services. Product revenue is derived from the sale of instruments and consumables, including IFCs, assays and reagents. Service revenue is derived from the sale of instrument service contracts, repairs, installation, training and other specialized product support services. Revenue is reported net of any sales, use and value-added taxes we collect from customers as required by government authorities. We recognize revenue based on the amount of consideration we expect to receive in exchange for the goods and services we transfer to the customer. Our commercial arrangements typically include multiple distinct products and services, and we allocate revenue to these performance obligations based on their relative standalone selling prices. Standalone selling prices ("SSP") are generally determined using observable data from recent transactions. In cases where sufficient data is not available, we estimate a product’s SSP using a cost plus a margin approach or by applying a discount to the product’s list price. Product Revenue We recognize product revenue at the point in time when control of the goods passes to the customer and we have an enforceable right to payment. This generally occurs either when the product is shipped from one of our facilities or when it arrives at the customer’s facility, based on the contractual terms. Customers generally do not have a unilateral right to return products after delivery. Instruments are sold with an assurance-type warranty and the estimated cost of the warranty is recognized as expense at the point when revenue is recognized. Invoices are generally issued at shipment and become due in 30 to 60 days . We sometimes perform shipping and handling activities after control of the product passes to the customer. We have made an accounting policy election to account for these activities as product fulfillment activities rather than as separate performance obligations. Service Revenue We recognize revenue from repairs, installation, training and other specialized product support services at the point in time the work is completed. Installation and training services are generally billed in advance of service. Repairs and other services are generally billed at the point the work is completed. Revenue associated with instrument service contracts is recognized ratably over the life of the agreement, which is generally one to three years . We believe this time-elapsed approach is appropriate for service contracts because we provide services on demand throughout the term of the agreement. Invoices are generally issued in advance of service on a monthly, quarterly, annual or multi-year basis. Payments made in advance of service are reported on our consolidated balance sheet as deferred revenue. Performance Obligations We reported $15.2 million of deferred revenue on our December 31, 2017, consolidated balance sheet. During the three months ended June 30, 2018 , $ 3.2 million of the opening balance was recognized as revenue and $2.8 million of net additional advance payments were received from customers, primarily associated with instrument service contracts. During the six months ended June 30, 2018 , $6.3 million of the opening balance was recognized as revenue and $6.6 million of net additional advance payments were received from customers, primarily associated with instrument service contracts. At June 30, 2018 , we reported $15.5 million of deferred revenue. The following table summarizes the expected timing of revenue recognition for unfulfilled performance obligations associated with instrument service contracts that were partially completed at June 30, 2018 (in thousands): Fiscal Year Expected Revenue (1) 2018 (remainder of the year) $ 5,494 2019 6,973 2020 3,302 Thereafter 1,323 Total $ 17,092 _______ (1) Expected revenue includes both billed amounts included in deferred revenue and unbilled amounts that are not reflected in our consolidated financial statements and are subject to change if our customers decide to cancel or modify their contracts. Purchase orders for instrument service contracts can generally be canceled before the service period begins without penalty. We apply the practical expedient that permits us to not disclose information about unsatisfied performance obligations that are expected to be delivered within one year. Contract Costs Incremental sales commission costs incurred to obtain instrument service contracts are capitalized and amortized to selling, general and administrative expense over the life of the contract, which is generally one to three years . As a practical expedient, we expense sales commissions associated with product support services that are delivered in less than one year as they are incurred. Sales commissions associated with the sale of products are expensed as they are incurred. We reported $0.4 million of capitalized commission costs from instrument service contracts on our December 31, 2017, and June 30, 2018, condensed consolidated balance sheets. Additional costs capitalized during the three and six months ended June 30, 2018, net of amortization, was not material. Significant Judgments Applying the revenue recognition practices discussed above often requires significant judgment. Assessing collectability requires us to determine if the customer has the ability and intent to make payments. This requires a comprehensive review of all relevant facts, including the customer’s historical practices and current financial condition. Estimating the amount of our future warranty obligations requires judgment. If warranty claims or the cost of servicing our products under warranty exceed our estimates, our cost of revenues could be adversely affected in future periods. Judgment is required when identifying performance obligations, estimating SSP and allocating purchasing consideration in multi-element arrangements. Moreover, significant judgment is required when interpreting commercial terms and determining when control of goods and services passes to the customer. Any material changes created by errors in judgment could have a material effect on our operating results and overall financial condition. Disaggregation of Revenues The following table disaggregates our revenue for the three and six months ended June 30, 2018 , and 2017 , respectively, by geographic area and by products and services (in thousands): Three Months Ended June 30, Year Over Year Change Six Months Ended June 30, Year Over Year Change 2018 2017 2018 2017 Geographic Markets: United States $ 12,042 $ 11,674 $ 368 $ 22,158 $ 23,505 $ (1,347 ) Europe 9,109 7,748 1,361 17,582 15,384 2,198 Asia Pacific 4,799 3,866 933 10,740 8,853 1,887 Other 478 624 (146 ) 1,196 1,703 (507 ) Total revenue $ 26,428 $ 23,912 $ 2,516 $ 51,676 $ 49,445 $ 2,231 Products and Services: Instruments $ 10,421 $ 9,928 $ 493 $ 17,941 $ 20,665 $ (2,724 ) Consumables 11,356 9,572 1,784 24,313 20,142 4,171 Product revenue 21,777 19,500 2,277 42,254 40,807 1,447 Services 4,651 4,319 332 9,422 8,486 936 License — 93 (93 ) — 152 (152 ) Total revenue $ 26,428 $ 23,912 $ 2,516 $ 51,676 $ 49,445 $ 2,231 |
Convertible Notes
Convertible Notes | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Convertible Notes | Convertible Notes 2014 Senior Convertible Notes (2014 Notes) On February 4, 2014, we closed an underwritten public offering of $201.3 million aggregate principal amount of our 2.75% Senior Convertible Notes due 2034 (2014 Notes), pursuant to an underwriting agreement, dated January 29, 2014. The 2014 Notes accrue interest at a rate of 2.75% per year, payable semi-annually in arrears on February 1 and August 1 of each year. Interest on the 2014 Notes will accrue from February 4, 2014. The 2014 Notes will mature on February 1, 2034, unless earlier converted, redeemed, or repurchased in accordance with the terms of the 2014 Notes. The initial conversion rate of the 2014 Notes is 17.8750 shares of our common stock, par value $0.001 per share, per $1,000 principal amount of 2014 Notes (which is equivalent to an initial conversion price of approximately $55.94 per share). The conversion rate will be subject to adjustment upon the occurrence of certain specified events, including upon a conversion in connection with a fundamental change, as defined in the indenture governing the 2014 Notes or, subject to certain conditions, redemption of the 2014 Notes by the Company. Holders may surrender their 2014 Notes for conversion at any time prior to the stated maturity date. On or after February 6, 2018, and prior to February 6, 2021, we may redeem any or all of the 2014 Notes in cash if the closing price of our common stock exceeds 130% of the conversion price for a specified number of days, and on or after February 6, 2021, we may redeem any or all of the 2014 Notes in cash without any such condition. The redemption price of the 2014 Notes will equal 100% of the principal amount of the 2014 Notes plus accrued and unpaid interest. Holders may require us to repurchase all or a portion of their 2014 Notes on each of February 6, 2021, February 6, 2024, and February 6, 2029, at a repurchase price in cash equal to 100% of the principal amount of the 2014 Notes plus accrued and unpaid interest. If we undergo a fundamental change, as defined in the indenture governing the 2014 Notes, holders may require us to repurchase the 2014 Notes in whole or in part for cash at a repurchase price equal to 100% of the principal amount of the 2014 Notes plus accrued and unpaid interest. In February 2014, we received $195.2 million , net of underwriting discounts, from the issuance of the 2014 Notes and incurred approximately $1.1 million in offering-related expenses. The underwriting discount of $6.0 million and the debt issuance costs of $1.1 million were recorded as offsets to the proceeds. 2018 Senior Convertible Notes (2018 Notes) In March 2018, we entered into separate privately negotiated transactions with certain holders of our 2014 Notes to exchange $150.0 million in aggregate principal amount of the 2014 Notes for new convertible notes (the "2018 Notes"). As of the closing of the 2018 Notes on March 12, 2018, the estimated fair value was $145.5 million . The difference between the $150.0 million aggregate principal amount of the 2018 Notes and its fair value will be amortized over the expected term of the 2018 Notes using the effective interest method through the first note holder put date, of February 6, 2023. We accounted for the exchange transaction as an extinguishment of debt due to the significance of the change in value of the embedded conversion option, resulting in a $0.1 million gain. The gain on extinguishment of debt was calculated as the difference between the reacquisition price (i.e., the fair value of the principal amount of 2018 Notes) and the net carrying value of the 2014 Notes exchanged net of unamortized debt discount and debt issuance cost write-offs. The 2018 Notes accrue interest at a rate of 2.75% , payable semi-annually in arrears on February 1 and August 1 of each year. Interest on the 2018 Notes will accrue from February 1, 2018. The 2018 Notes will mature on February 1, 2034, unless earlier converted, redeemed, or repurchased in accordance with the terms of the indenture governing the 2018 Notes. The initial conversion rate of the 2018 Notes is 126.9438 shares of our common stock, par value $0.001 per share, per $1,000 principal amount of the 2018 Notes (which is equivalent to an initial conversion price of approximately $7.88 per share). The conversion rate will be subject to adjustment upon the occurrence of certain specified events. Those certain specified events include Holders who convert their 2018 Notes voluntarily prior to our exercise of the Issuer's Conversion Option or in connection with a make-whole fundamental change prior to February 6, 2023, are entitled, under certain circumstances, to a make-whole premium in the form of an increase in the conversion rate determined by reference to a make-whole table set forth in the indenture governing the 2018 Notes. Any time prior to the maturity of the 2018 Notes, we may convert the 2018 Notes, in whole but not in part, into cash, shares of our common stock, or combination thereof, if the closing price of our common stock equals or exceeds 110% of the conversion price then in effect for a specified number of days (Issuer’s Conversion Option). On or after February 6, 2022, we may elect to redeem all or any portion of the 2018 Notes at a redemption price equal to 100% of the accreted principal amount of the 2018 Notes on the redemption date of the 2018 Notes, plus accrued and unpaid interest. Holders of the 2018 Notes have the right, at their option, to require us to purchase all or a portion of the 2018 Notes (i) on February 6, 2023, February 6, 2026, and February 6, 2029, or (ii) in the event of a fundamental change, as defined in the indenture governing the 2018 Notes, in each case, at a repurchase price equal to 100% of the accreted principal amount (i.e., up to 120% of the outstanding principal amount) of the 2018 Notes on the fundamental change repurchase date, plus accrued and unpaid interest. As the 2018 Notes are convertible, at our election, into cash, shares of our common stock, or a combination of cash and shares of our common stock, we accounted for the 2018 Notes under the cash conversion guidance in ASC 470, whereby the embedded conversion option in the 2018 Notes was separated and accounted for in equity. The embedded conversion option value was calculated as the difference between (i) the total fair value of the 2018 Notes and (ii) the fair value of a similar debt instrument excluding the embedded conversion option. We determined an embedded conversion option value of $29.3 million , which was recorded in additional paid-in-capital and reduced the carrying value of the 2018 Notes. The resulting discount on the 2018 Notes will be amortized over the expected term of the 2018 Notes, using the effective interest method through the first note holder put date, of February 6, 2023. Offering-related costs for the 2018 Notes were approximately $2.8 million and were paid in the first and second quarters of 2018. Offering-related costs of $2.2 million were capitalized as debt issuance costs, recorded as an offset to the carrying value of the 2018 Notes, and will be amortized over the expected term of the 2018 Notes using the effective interest method through the first note holder put date of February 6, 2023. Offering-related costs of $0.6 million were accounted for as equity issuance costs, recorded as an offset to additional paid-in capital, and are not subject to amortization. Offering-related costs were allocated between debt and equity in the same proportion as the allocation of the 2018 Notes between debt and equity. The carrying values of the components of the 2014 Notes and the 2018 Notes are as follows (in thousands): June 30, 2018 December 31, 2017 2.75% 2014 Notes due 2034 Principal amount $ 51,250 $ 201,250 Unamortized debt discount (1,264 ) (5,087 ) Unamortized debt issuance cost (230 ) (925 ) 49,756 195,238 2.75% 2018 Notes due 2034 Principal amount 150,000 — Premium accretion of 2018 Notes 1,363 — Unamortized debt discount (32,253 ) — Unamortized debt issuance cost (2,108 ) — 117,002 — $ 166,758 $ 195,238 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Financial Instruments The following tables summarize our cash and available-for-sale securities by significant category within the fair value hierarchy (in thousands): June 30, 2018 Carrying Amount Gross Unrealized Gain Gross Unrealized Loss Fair Value Cash and Cash Equivalents Short-Term Marketable Securities Assets: Cash $ 11,826 $ — $ — $ 11,826 $ 11,826 $ — Available-for-sale: Level I: Money market funds 5,195 — — 5,195 5,195 — U.S. treasury securities 996 — — 996 — 996 Subtotal 6,191 — — 6,191 5,195 996 Level II: U.S. government and agency securities 22,402 1 — 22,403 22,403 — Total $ 40,419 $ 1 $ — $ 40,420 $ 39,424 $ 996 December 31, 2017 Carrying Amount Gross Unrealized Gain Gross Unrealized Loss Fair Value Cash and Cash Equivalents Short-Term Marketable Securities Assets: Cash $ 20,129 $ — $ — $ 20,129 $ 20,129 $ — Available-for-sale: Level I: Money market funds 16,142 — — 16,142 16,142 — U.S. treasury securities 497 497 497 Subtotal 16,639 — — 16,639 16,142 497 Level II: U.S. government and agency securities 26,369 — (1 ) 26,368 21,785 4,583 Total $ 63,137 $ — $ (1 ) $ 63,136 $ 58,056 $ 5,080 There were no transfers between Level I and Level II measurements during the six months ended June 30, 2018 , and 2017 , and there were no changes in the valuation techniques used. The contractual maturity periods of $1.0 million of our marketable debt securities are within one year from June 30, 2018 . Convertible Notes The estimated fair value of the 2014 Notes is based on a market approach. The estimated fair value was approximately $41.5 million and $166.2 million (par value $51.3 million and $201.3 million ) as of June 30, 2018 , and December 31, 2017 , respectively, and represents a Level II valuation. The estimated fair value of the 2018 Notes is based on a market approach. The estimated fair value was approximately $139.3 million (par value $150.0 million ) as of June 30, 2018. |
Intangible Assets, net
Intangible Assets, net | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, net | Intangible Assets, net Intangible assets include developed technology related to the DVS acquisition and other intangible assets included in Other non-current assets. Intangible assets, net were as follows (in thousands): June 30, 2018 Gross Amount Accumulated Amortization Net Weighted-Average Amortization Period Developed technology $ 112,000 $ (49,000 ) $ 63,000 10.0 years Patents and licenses 11,274 (6,321 ) 4,953 7.8 years Total intangible assets, net $ 123,274 $ (55,321 ) $ 67,953 December 31, 2017 Gross Amount Accumulated Amortization Net Weighted-Average Amortization Period Developed technology $ 112,000 $ (43,400 ) $ 68,600 10.0 years Patents and licenses 11,274 (5,721 ) 5,553 7.8 years Total intangible assets, net $ 123,274 $ (49,121 ) $ 74,153 In connection with the acquisition of DVS in February 2014, we acquired developed technology with a gross fair value of $112.0 million . These acquired intangible assets are being amortized to cost of product revenue over their useful life of ten years . Related amortization for both the three months ended June 30, 2018, and 2017 was $2.8 million. Related amortization for both the six months ended June 30, 2018, and 2017 was $5.6 million . Based on the carrying value of intangible assets, net as of June 30, 2018 , the annual amortization expense for intangible assets is expected to be as follows (in thousands): Fiscal Year Amortization Expense 2018 (remainder of the year) $ 8,934 2019 12,242 2020 12,241 2021 12,087 2022 12,004 Thereafter 10,445 $ 67,953 |
Balance Sheet Details
Balance Sheet Details | 6 Months Ended |
Jun. 30, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Details | Balance Sheet Details Inventories Inventories consisted of the following (in thousands): June 30, 2018 December 31, 2017 Raw materials $ 7,714 $ 7,566 Work-in-process 1,001 929 Finished goods 6,536 6,593 Total inventories, net $ 15,251 $ 15,088 Property and Equipment, net Property and equipment, net consisted of the following (in thousands): June 30, 2018 December 31, 2017 Computer equipment and software $ 4,168 $ 4,179 Laboratory and manufacturing equipment 20,145 20,069 Leasehold improvements 7,704 7,799 Office furniture and fixtures 1,865 1,892 Property and equipment, gross 33,882 33,939 Less accumulated depreciation and amortization (23,505 ) (21,646 ) Construction-in-progress 47 8 Property and equipment, net $ 10,424 $ 12,301 Warranty We accrue for estimated warranty obligations once revenue is recognized. Management periodically reviews the estimated fair value of its warranty liability and records adjustments based on the terms of warranties provided to customers, as well as historical and anticipated warranty claim experience. Activity for our warranty accrual for the three and six months ended June 30, 2018 , and 2017 , which is included in other accrued liabilities, is summarized below (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Beginning balance $ 591 $ 864 $ 699 $ 1,023 Accrual for current period warranties 401 19 738 187 Warranty costs incurred (383 ) (177 ) (828 ) (504 ) Ending balance $ 609 $ 706 $ 609 $ 706 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Leases We have entered into various long-term non-cancelable operating lease agreements for equipment and facilities expiring at various times through March 2026. We lease office space under non-cancelable leases in the United States, Canada, Singapore, Japan, China, France and the United Kingdom. Certain facility leases also contain rent escalation clauses. Our lease payments are expensed on a straight-line basis over the life of the leases. Rental expense under operating leases, net of amortization of lease incentives and sublease income for the three and six months ended June 30, 2018 was $1.0 million and $2.2 million , respectively. Rental expense under operating leases, net of amortization of lease incentives and sublease income for the three and six months ended June 30, 2017 was $1.0 million and $2.6 million , respectively. Future minimum lease payments and minimum sublease income under non-cancelable operating leases as of June 30, 2018 , were as follows (in thousands): Fiscal Year Minimum Lease Payments Minimum Sublease Income Net Operating Leases 2018 (remainder of the year) $ 1,724 $ — $ 1,724 2019 3,369 — 3,369 2020 1,917 — 1,917 2021 1,237 — 1,237 2022 843 — 843 Thereafter 1,854 — 1,854 Total $ 10,944 $ — $ 10,944 Indemnification From time to time, we have entered into indemnification provisions under certain of our agreements in the ordinary course of business, typically with business partners, customers, and suppliers. Pursuant to these agreements, we may indemnify, hold harmless, and agree to reimburse the indemnified parties on a case-by-case basis for losses suffered or incurred by the indemnified parties in connection with any patent or other intellectual property infringement claim by any third party with respect to our products. The term of these indemnification provisions is generally perpetual from the time of the execution of the agreement. The maximum potential amount of future payments we could be required to make under these indemnification provisions is typically not limited to a specific amount. In addition, we have entered into indemnification agreements with our officers, directors, and certain other employees. With certain exceptions, these agreements provide for indemnification for related expenses including, among others, attorneys' fees, judgments, fines and settlement amounts incurred by any of these individuals in any action or proceeding. We incurred indemnification expenses between October 2015 and the third quarter of 2017 to defend claims by Thermo Fisher Scientific, Inc., (Thermo) against one of our employees. In December, 2015, Thermo filed a complaint in the Circuit Court for the County of Kalamazoo, Michigan against one of its former employees who had recently been hired by us alleging, among other claims, misappropriation of proprietary information and breach of contractual and fiduciary obligations to Thermo while such individual was still an employee of Thermo. In November, 2016, Thermo amended its complaint to add us as a party to the litigation, making various commercial and employment-related claims and seeking damages and injunctive relief. In July 2017, we entered into a settlement agreement with Thermo. Pursuant to the terms of the settlement agreement, we agreed to pay Thermo a one-time payment of $3.0 million in exchange for a release and dismissal of all claims with prejudice upon payment of the settlement. In August 2017, we paid the settlement amount of $3.0 million and received a related insurance recovery payment of $1.0 million . Contingencies |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation We recognized stock-based compensation expense of $2.0 million and $3.8 million during the three and six months ended June 30, 2018 , respectively. We recognized stock-based compensation expense of $2.3 million and $4.8 million during the three and six months ended June 30, 2017, respectively. As of June 30, 2018 , we had $4.9 million , $11.9 million , and $1.5 million of unrecognized stock-based compensation expense related to stock options, restricted stock units, and performance stock units, respectively, which are expected to be recognized over a weighted average period of 3.0 years, 3.2 years, and 2.8 years, respectively. Equity Incentive Plans (Excluding Stock Option Exchange Program) During the three and six months ended June 30, 2018 , we granted certain employees options to purchase 368,639 and 661,539 shares of common stock, respectively. The options granted during the three months ended June 30, 2018 , had exercise prices ranging from $5.09 to $5.90 per share and a total grant date fair value of $1.2 million . The options granted during the six months ended June 30, 2018 , had exercise prices ranging from $5.09 to $6.33 per share and a total grant date fair value of $2.2 million . During the three and six months ended June 30, 2018 , we granted certain employees 1,147,449 and 1,231,737 restricted stock units, respectively. The restricted stock unit awards granted during the three months ended June 30, 2018 , had fair market values ranging from $5.09 to $6.14 per unit and a total grant date fair value of $6.0 million . The restricted stock unit awards granted during the six months ended June 30, 2018 , had fair market values ranging from $5.09 to $7.81 per unit and a total grant date fair value of $6.6 million . During the six months ended June 30, 2018 , we granted certain executive officers 167,000 performance stock units. The performance stock unit awards had a grant date fair value of $10.09 per unit and a total grant date fair value of $1.7 million . The expenses relating to these options and restricted stock units will be recognized over their respective four -year vesting periods. The expenses relating to these performance stock units will be recognized over their three -year vesting periods. 2018 Performance Stock Units During the three months ended March 31, 2018, we granted 167,000 performance stock units to certain executive officers and senior level employees. The number of performance stock units ultimately earned is calculated based on the Total Shareholder Return ("TSR") of our common stock as compared to the TSR of a defined group of peer companies during the performance period from January 1, 2018, to December 31, 2020. The percentage of performance stock units that vest will depend on our relative position at the end of the performance period and can range from 0% to 200% of the number of units granted. Under FASB ASC Topic 718, the provisions of the performance stock unit awards related to TSR are considered a market condition, and the effects of that market condition should be reflected in the grant date fair value of the awards. We used a Monte Carlo simulation pricing model to incorporate the market condition effects at our grant date with a fair value of $10.09 per unit. Stock Option Exchange Program On August 23, 2017, we launched a one-time stock option exchange program (Program) pursuant to which eligible employees were able to exchange certain outstanding stock options (Eligible Options), whether vested or unvested, with an exercise price greater than $4.37 per share and greater than the closing price of a share of our common stock on the NASDAQ Global Select Market on the expiration date of the exchange offer (Offer), for restricted stock units or stock options (New Awards) covering a lesser number of shares than were subject to the Eligible Options exchanged immediately before being canceled in the Offer. Non-employee members of our Board of Directors were not eligible to participate in the Program. The Program expired on September 20, 2017, with a closing price of $5.13 per share. 115 employees elected to surrender Eligible Options to purchase a total of 1,204,198 shares of our common stock, representing approximately 50.02% of the total shares of common stock underlying the Eligible Options. All surrendered options were canceled effective as of the expiration date, and immediately thereafter, in exchange for such surrendered options, we issued (i) new options to purchase an aggregate of 399,117 shares of our common stock with an exercise price of $5.13 ; and (ii) restricted stock units representing 54,944 shares of our common stock, each, pursuant to the terms of the Offer and our 2011 Equity Incentive Plan. The new awards granted under the Program generally vest over three years . The Program did not result in a material incremental stock-based compensation expense because the fair value of the new awards was approximately equal to the fair value of the surrendered options immediately prior to the exchange date. The original fair value of the surrendered options plus the incremental stock-based compensation expense will be recognized over the vesting periods of the New Awards. 2017 Employee Stock Purchase Plan In August 2017, our stockholders approved our 2017 Employee Stock Purchase Plan (ESPP). Our ESPP offers U.S. and some non-U.S. employees the right to purchase shares of our common stock. Our ESPP has a six -month offering period, with a new period commencing on the first trading day on or after May 31 and November 30 of each year. Employees are eligible to participate through payroll deductions of up to 10% of their compensation and may not purchase more than $25,000 of stock for any calendar year. The purchase price at which shares are sold under the ESPP is 85% of the lower of the fair market value of a share of our common stock on the first day of the offering period or the last day of the offering period. Our first ESPP offering period began on October 1, 2017, with a shorter offering period ending on November 30, 2017. The next offering period began on December 1, 2017 and ended on May 31, 2018. Our current offering period began on June 1, 2018, and will end on November 30, 2018. 2016 Performance-based Stock Options and Restricted Stock Units In 2016, we granted 184,050 and 87,620 performance-based stock options and performance-based restricted stock units (each, a performance award), respectively, to executive officers and employees, which were accounted for as equity awards. The number of performance awards that ultimately vest depends on the achievement of certain performance criteria set by the Compensation Committee of the Company’s Board of Directors. The performance-based stock options have an exercise price per share of $7.10 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The benefit for income taxes for the periods presented differs from the 21% and the 35% U.S. Federal statutory rate, for the three and six months ended June 30, 2018, and 2017, respectively, primarily due to maintaining a valuation allowance for deferred tax assets, which primarily consist of net operating loss carryforwards. We recorded a tax benefit of $0.2 million and $1.4 million for the three and six months ended June 30, 2018 , respectively, which was primarily attributable to the amortization of our acquisition-related deferred tax liability and net operating loss from Canadian operations, partially offset by a tax provision and discrete tax items from our other foreign operations. We recorded a tax benefit of $0.8 million and $2.6 million for the three and six months ended June 30, 2017, respectively, which was primarily attributable to the amortization of our acquisition-related deferred tax liability and net operating loss from Canadian operations, partially offset by discrete tax items and a tax provision from our other foreign operations. Recording deferred tax assets is appropriate when realization of these assets is more likely than not. Assessing the realizability of deferred tax assets is dependent upon several factors including historical financial results. The deferred tax assets have been offset by valuation allowances. In December 2017, the Tax Cuts and Jobs Act (the Tax Act) was enacted. The Tax Act introduced a broad range of tax reform measures that significantly change the federal income tax laws. The provisions of the Tax Act that may have significant impact on us include the permanent reduction of the corporate income tax rate from 35% to 21% (effective for tax years including or commencing on January 1, 2018), one-time transition tax on post-1986 foreign unremitted earnings, provision for Global Intangible Low-Taxed Income (GILTI), deduction for Foreign-Derived Intangible Income (FDII), repeal of corporate alternative minimum tax, limitation of various business deductions, modification of the maximum deduction of net operating loss with no carryback but indefinite carryforward provision and the limitation on the deductibility of executive compensation. |
Information about Geographic Ar
Information about Geographic Areas | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Information about Geographic Areas | Information about Geographic Areas We operate in one reporting segment that develops, manufactures, and commercializes tools for life sciences research. Our chief executive officer manages our operations and evaluates our financial performance on a consolidated basis. For purposes of allocating resources and evaluating regional financial performance, our chief executive officer reviews separate sales information for the different regions of the world. Our general and administrative expenses and our research and development expenses are not allocated to any specific region. Most of our principal operations, other than manufacturing, and our decision-making functions are located at our corporate headquarters in the United States. The following table presents the total revenue by geographic area of our customers for each period presented (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 United States $ 12,042 $ 11,674 $ 22,158 $ 23,505 Europe 9,109 7,748 17,582 15,384 Asia-Pacific 4,799 3,866 10,740 8,853 Other 478 624 1,196 1,703 Total revenue $ 26,428 $ 23,912 $ 51,676 $ 49,445 No individual customer represented more than 10% of our total revenues for the three and six months ended June 30, 2018 , and 2017 . Sales to customers in China represented 9% or $2.3 million and 12% or $2.8 million of our total revenue for the three months ended June 30, 2018 , and 2017 , respectively, and 11% for the six months ended June 30, 2018 and 2017. Sales to customers in the United Kingdom represented less than 10% and 12% of our total revenues for the three months ended June 30, 2018, and 2017, respectively, and less than 10% for the six months ended June 30, 2018 and 2017. Except for China and the United Kingdom, no other foreign country or jurisdiction had sales in excess of 10% of our total revenue during the three and six months ended June 30, 2018 , and 2017 |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity Tax Benefit Preservation Plan In November 2016, our board of directors approved a tax benefit preservation plan, or Tax Benefit Preservation Plan, in an effort to protect our tax benefits during the effective period of the tax benefit preservation plan. Under the Tax Benefit Preservation Plan, we issued preferred share purchase rights to holders of our common stock. In August 2017, the Tax Benefit Preservation Plan expired and all of the preferred share purchase rights distributed to the holders of our common stock pursuant to the tax plan also expired. At-The-Market Offering In August 2017, we entered into a Sales Agreement with Cowen and Company, LLC (Cowen) to sell shares of our common stock having aggregate sales proceeds of up to $30 million , from time to time, through an “at-the-market” equity offering program under which Cowen would act as sales agent. Under the Sales Agreement, we set the parameters for the sale of shares, including the number of shares to be issued, the time period during which sales are requested to be made, limitation on the number of shares that may be sold in any one trading day and any minimum price below which sales may not be made. Under the Sales Agreement, in August 2017, we sold 9,090,909 shares of our common stock, $0.001 par value per share, through Cowen acting as our agent, for aggregate gross proceeds of $30.0 million . Our aggregate net proceeds from such sales were approximately $28.8 million , after deducting related expenses, including commissions to Cowen of approximately $0.7 million and issuance costs of approximately $0.5 million |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On August 2, 2018, we entered into a revolving credit facility with Silicon Valley Bank (the “Revolving Credit Facility”) in an aggregate principal amount of up to the lesser of (i) $15.0 million (the “Maximum Amount”) or (ii) the sum of (a) 85% of our eligible receivables and (b) 50% of our eligible inventory, in each case, subject to certain limitations. The Revolving Credit Facility will mature on August 2, 2020, and is collateralized by substantially all of our property, other than intellectual property. Outstanding loans under the Revolving Credit Facility will bear interest, at the greater of (i) prime rate plus 0.50% or (ii) 5.50% . Interest on any outstanding loans is due and payable monthly and the principal balance is due at maturity. Subject to certain exceptions, we must pay a prepayment fee equal to (i) 2.00% of the Maximum Amount if we prepay all advances and terminate the Loan Agreement prior to August 2, 2019, or (ii) 1.00% of the Maximum Amount if we prepay all advances and terminate the Loan Agreement on or after August 2, 2019, and prior to the maturity date. The Revolving Credit Facility contains customary affirmative and negative covenants which, unless waived by the bank, limit our ability to, among other things, incur additional indebtedness, grant liens, make investments, repurchase stock, pay dividends, transfer assets or engage in merger and acquisition activity, including merge or consolidate with a third party. The Revolving Credit Facility also contains customary events of default, subject to customary cure periods for certain defaults, that include, among other things, non-payment defaults, covenant defaults, material judgment defaults, bankruptcy and insolvency defaults, cross-defaults to certain other material indebtedness, and defaults due to inaccuracy of representation and warranties. Upon an event of default, the lender may declare all or a portion of the outstanding obligations payable by us to be immediately due and payable and exercise other rights and remedies provided for under the Revolving Credit Facility. During the existence of an event of default, interest on the obligations under the Revolving Credit Facility could be increased by 5.0% . |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP), and following the requirements of the Securities and Exchange Commission (SEC) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP have been condensed or omitted, and accordingly the balance sheet as of December 31, 2017 , has been derived from audited consolidated financial statements at that date but does not include all disclosures required by U.S. GAAP for complete financial statements. These financial statements have been prepared on the same basis as our annual financial statements and, in the opinion of management, reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for a fair statement of our financial information. The results of operations for the three and six months ended June 30, 2018 are not necessarily indicative of the results to be expected for the year ending December 31, 2018 , or for any other interim period or for any other future year. All intercompany transactions and balances have been eliminated in consolidation. The preparation of these condensed consolidated financial statements requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. We base our estimates on historical experience and on various other assumptions believed to be reasonable, which together form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ materially from these estimates and could have a material adverse effect on our condensed consolidated financial statements. The accompanying condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the accompanying notes in Item 8 of Part II, "Financial Statements and Supplementary Data," for the year ended December 31, 2017 |
Reclassifications | Certain prior period amounts in the condensed consolidated statements of cash flows have been reclassified to conform to the current period presentation. These reclassifications were immaterial and did not affect prior period total assets, total liabilities, stockholders' equity, total revenue, total costs and expenses, loss from operations or net loss. |
Net Loss per Share | Net Loss per Share |
Goodwill, Intangible Assets, and Other Long-lived Assets | Goodwill, Intangible Assets, and Other Long-lived Assets Goodwill and intangible assets with indefinite lives are not subject to amortization but are tested for impairment on an annual basis during the fourth quarter or whenever events or changes in circumstances indicate the carrying amount of these assets may not be recoverable. We first assess qualitative factors to determine whether it is more likely than not that the fair value of our reporting unit is less than its carrying amount. If we determine that it is more likely than not that the fair value of our reporting unit is less than its carrying amount, we then conduct a two-step test for impairment of goodwill. In the first step, we compare the fair value of our reporting unit to its carrying value. If the fair value of our reporting unit exceeds its carrying value, goodwill is not considered impaired and no further analysis is required. If the carrying value of the reporting unit exceeds its fair value, then the second step of the impairment test must be performed in order to determine the implied fair value of the goodwill. If the carrying value of the goodwill exceeds its implied fair value, then an impairment loss equal to the difference would be recorded. |
Convertible Notes | Convertible Notes In February 2014, we closed an underwritten public offering $201.3 million aggregate principal amount of our 2.75% Senior Convertible Notes due 2034 (2014 Notes). In March 2018, we entered into separate privately negotiated transactions with certain holders of our 2014 Notes to exchange $150.0 million in aggregate principal amount of the 2014 Notes for our new 2.75% Exchange Convertible Senior Notes due 2034 (2018 Notes). Following the exchange, approximately $51.3 million in aggregate principal amount of the 2014 Notes remain outstanding in addition to $150.0 million in aggregate principal amount of the 2018 Notes. |
Recent Accounting Changes and Accounting Pronouncements | Recent Accounting Changes and Accounting Pronouncements Adoption of New Accounting Guidance In May 2014, the FASB issued ASU 2014-09 Revenue from Contracts with Customers (Topic 606). Topic 606 and its related amendments supersede Revenue Recognition (Topic 605), issued in June 2010, and provide principles for recognizing revenue for goods and services in a manner consistent with the transfer of control of those goods and services to the customer. We adopted Topic 606 on January 1, 2018, using the modified retrospective method applied to those contracts with unrecognized revenue on the adoption date. We recognized the effect of applying the new revenue standard by recording a cumulative catch-up adjustment that reduced the accumulated deficit component of stockholders’ equity by $0.4 million and increased current assets by $0.2 million and non-current assets by $0.2 million . The adjustment capitalized certain sales commission costs that were incurred to obtain instrument service contracts. Under Topic 605, we accounted for these incremental contract acquisition costs by recognizing them as expense at the point the contract was awarded. Under Topic 606, the costs are capitalized and amortized to expense over the life of the contract, which is generally one to three years. The comparative information for periods prior to January 1, 2018, has not been restated and continues to be reported in accordance with Topic 605. The following table summarizes the cumulative effect of adopting Topic 606 on amounts previously reported in our consolidated balance sheet at December 31, 2017 (in thousands): Balance at December 31, 2017 Topic 606 Transition Adjustments Balance at January 1, 2018 Prepaid expenses and other current assets $ 1,528 $ 153 $ 1,681 Total current assets $ 94,801 $ 153 $ 94,954 Other non-current assets $ 7,541 $ 205 $ 7,746 Total assets $ 287,351 $ 358 $ 287,709 Accumulated deficit $ (500,196 ) $ 358 $ (499,838 ) Total stockholders' equity $ 30,935 $ 358 $ 31,293 Total liabilities and stockholders' equity $ 287,351 $ 358 $ 287,709 The following table summarizes the impacts on our condensed consolidated statements of operations of adopting Topic 606 compared to Topic 605 for the three and six months ended June 30, 2018 (in thousands): As Reported Balance Without Adoption of Topic 606 Effect of Change As Reported Balance Without Adoption of Topic 606 Effect of Change Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Selling, general and administrative $ 18,987 $ 19,004 $ (17 ) $ 37,792 $ 37,842 $ (50 ) Total costs and expenses $ 39,213 $ 39,230 $ (17 ) $ 77,094 $ 77,144 $ (50 ) Loss from operations $ (12,785 ) $ (12,802 ) $ 17 $ (25,418 ) $ (25,468 ) $ 50 Loss before income taxes $ (16,445 ) $ (16,462 ) $ 17 $ (30,875 ) $ (30,925 ) $ 50 Net loss $ (16,241 ) $ (16,258 ) $ 17 $ (29,488 ) $ (29,538 ) $ 50 The following table summarizes the impacts on our condensed consolidated balance sheets of adopting Topic 606 compared to Topic 605 at June 30, 2018 (in thousands): As Reported Balance Without Adoption of Topic 606 Effect of Change June 30, 2018 Prepaid expenses and other current assets $ 2,702 $ 2,532 $ 170 Total current assets $ 75,247 $ 75,077 $ 170 Other non-current assets $ 6,324 $ 6,086 $ 238 Total assets $ 259,103 $ 258,695 $ 408 Stockholders' equity $ 34,833 $ 34,425 $ 408 Total liabilities and stockholders' equity $ 259,103 $ 258,695 $ 408 In August 2016, the FASB issued ASU 2016-15 Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The ASU addresses eight specific cash flow issues and their presentation within the statement of cash flows. We adopted this ASU in the first quarter of 2018. The adoption of this ASU did not have a material impact on our condensed consolidated financial statements. In November 2016, the FASB issued ASU 2016-18 Statement of Cash Flows (Topic 230): Restricted Cash, a consensus of the FASB’s Emerging Issues Task Force, amending the presentation of restricted cash within the statement of cash flows. The new guidance requires that restricted cash be included within cash and cash equivalents on the statement of cash flows. We adopted this ASU in the first quarter of 2018. The adoption of this ASU did not have a material impact on our condensed consolidated financial statements. Recent Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02 Leases (Topic 842). This ASU requires lessees to recognize a right-of-use asset and a lease liability on the balance sheet for all leases except short-term leases. For lessees, leases will continue to be classified as either operating or finance leases in the income statement. Lessor accounting under this ASU is similar to the current model but updated to align with certain changes to the lessee model. Lessors will continue to classify leases as operating, direct financing or sales-type leases. ASU 2016-02 will be effective for our fiscal year beginning January 1, 2019, and early adoption is permitted. We are currently evaluating the effect that the updated standard will have on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The ASU eliminates the requirement for an entity to calculate the implied fair value of goodwill to measure a goodwill impairment charge. Instead, an entity performs its annual, or interim, goodwill impairment testing by comparing the fair value of a reporting unit with its carrying amount and recording an impairment charge for the amount by which the carrying amount exceeds the fair value. The ASU will be effective for annual and interim goodwill impairment testing performed for our fiscal year beginning January 1, 2020, with early adoption permitted. We are currently evaluating the effect that the updated standard will have on our consolidated financial statements. In February 2018, the FASB issued ASU 2018-02 Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This ASU amends the reporting of comprehensive income to allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (the Tax Act). The Tax Act was enacted in December 2017 and reduced the U.S federal corporate income tax rate and made other changes to U.S. federal tax law. ASU 2018-02 will be effective for our fiscal year beginning January 1, 2019, and early adoption is permitted. We are currently evaluating the accounting, transition, and disclosure requirements of the standard. We are currently evaluating the effect that the updated standard will have on our consolidated financial statements. In March 2018, the FASB issued ASU No. 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118. This ASU allows SEC reporting companies to record provisional amounts in earnings for the year ended December 31, 2017, due to the complexities involved in accounting for the enactment of the Tax Act. The Company recognized the estimated income tax effects of the Tax Act in its 2017 Consolidated Financial Statements in |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of potential common shares excluded from computations of diluted net loss per share attributed to common stockholders | The following potentially dilutive common shares were excluded from the computation of diluted net loss per share for the three and six months ended June 30, 2018 , and 2017 because including them would have been anti-dilutive (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Stock options, restricted stock units and performance awards 4,586 4,528 4,586 4,528 2018 Convertible Notes 19,036 — 19,036 — 2018 Convertible Notes potential make-whole shares at June 30, 2018 1,204 — 1,204 — 2014 Convertible Notes 916 3,598 916 3,598 Total 25,742 8,126 25,742 8,126 |
Summary of comprehensive loss | The components of accumulated other comprehensive loss, net of tax, for the three and six months ended June 30, 2018 , are as follows (in thousands): Foreign Currency Translation Adjustment Net Unrealized Gain on Securities Accumulated Other Comprehensive Loss Balance at December 31, 2017 $ (575 ) $ 1 $ (574 ) Other comprehensive income (loss) 43 (1 ) 42 Balance at March 31, 2018 (532 ) — (532 ) Other comprehensive income 26 2 28 Balance at June 30, 2018 $ (506 ) $ 2 $ (504 ) |
Summaries of new accounting adoption impacts | The following table summarizes the impacts on our condensed consolidated statements of operations of adopting Topic 606 compared to Topic 605 for the three and six months ended June 30, 2018 (in thousands): As Reported Balance Without Adoption of Topic 606 Effect of Change As Reported Balance Without Adoption of Topic 606 Effect of Change Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Selling, general and administrative $ 18,987 $ 19,004 $ (17 ) $ 37,792 $ 37,842 $ (50 ) Total costs and expenses $ 39,213 $ 39,230 $ (17 ) $ 77,094 $ 77,144 $ (50 ) Loss from operations $ (12,785 ) $ (12,802 ) $ 17 $ (25,418 ) $ (25,468 ) $ 50 Loss before income taxes $ (16,445 ) $ (16,462 ) $ 17 $ (30,875 ) $ (30,925 ) $ 50 Net loss $ (16,241 ) $ (16,258 ) $ 17 $ (29,488 ) $ (29,538 ) $ 50 The following table summarizes the impacts on our condensed consolidated balance sheets of adopting Topic 606 compared to Topic 605 at June 30, 2018 (in thousands): As Reported Balance Without Adoption of Topic 606 Effect of Change June 30, 2018 Prepaid expenses and other current assets $ 2,702 $ 2,532 $ 170 Total current assets $ 75,247 $ 75,077 $ 170 Other non-current assets $ 6,324 $ 6,086 $ 238 Total assets $ 259,103 $ 258,695 $ 408 Stockholders' equity $ 34,833 $ 34,425 $ 408 Total liabilities and stockholders' equity $ 259,103 $ 258,695 $ 408 Balance at December 31, 2017 Topic 606 Transition Adjustments Balance at January 1, 2018 Prepaid expenses and other current assets $ 1,528 $ 153 $ 1,681 Total current assets $ 94,801 $ 153 $ 94,954 Other non-current assets $ 7,541 $ 205 $ 7,746 Total assets $ 287,351 $ 358 $ 287,709 Accumulated deficit $ (500,196 ) $ 358 $ (499,838 ) Total stockholders' equity $ 30,935 $ 358 $ 31,293 Total liabilities and stockholders' equity $ 287,351 $ 358 $ 287,709 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Summary of expected timing of revenue recognition | The following table summarizes the expected timing of revenue recognition for unfulfilled performance obligations associated with instrument service contracts that were partially completed at June 30, 2018 (in thousands): Fiscal Year Expected Revenue (1) 2018 (remainder of the year) $ 5,494 2019 6,973 2020 3,302 Thereafter 1,323 Total $ 17,092 _______ (1) |
Summary of disaggregation of revenue | The following table disaggregates our revenue for the three and six months ended June 30, 2018 , and 2017 , respectively, by geographic area and by products and services (in thousands): Three Months Ended June 30, Year Over Year Change Six Months Ended June 30, Year Over Year Change 2018 2017 2018 2017 Geographic Markets: United States $ 12,042 $ 11,674 $ 368 $ 22,158 $ 23,505 $ (1,347 ) Europe 9,109 7,748 1,361 17,582 15,384 2,198 Asia Pacific 4,799 3,866 933 10,740 8,853 1,887 Other 478 624 (146 ) 1,196 1,703 (507 ) Total revenue $ 26,428 $ 23,912 $ 2,516 $ 51,676 $ 49,445 $ 2,231 Products and Services: Instruments $ 10,421 $ 9,928 $ 493 $ 17,941 $ 20,665 $ (2,724 ) Consumables 11,356 9,572 1,784 24,313 20,142 4,171 Product revenue 21,777 19,500 2,277 42,254 40,807 1,447 Services 4,651 4,319 332 9,422 8,486 936 License — 93 (93 ) — 152 (152 ) Total revenue $ 26,428 $ 23,912 $ 2,516 $ 51,676 $ 49,445 $ 2,231 |
Convertible Notes (Tables)
Convertible Notes (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of debt | The carrying values of the components of the 2014 Notes and the 2018 Notes are as follows (in thousands): June 30, 2018 December 31, 2017 2.75% 2014 Notes due 2034 Principal amount $ 51,250 $ 201,250 Unamortized debt discount (1,264 ) (5,087 ) Unamortized debt issuance cost (230 ) (925 ) 49,756 195,238 2.75% 2018 Notes due 2034 Principal amount 150,000 — Premium accretion of 2018 Notes 1,363 — Unamortized debt discount (32,253 ) — Unamortized debt issuance cost (2,108 ) — 117,002 — $ 166,758 $ 195,238 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of investments | The following tables summarize our cash and available-for-sale securities by significant category within the fair value hierarchy (in thousands): June 30, 2018 Carrying Amount Gross Unrealized Gain Gross Unrealized Loss Fair Value Cash and Cash Equivalents Short-Term Marketable Securities Assets: Cash $ 11,826 $ — $ — $ 11,826 $ 11,826 $ — Available-for-sale: Level I: Money market funds 5,195 — — 5,195 5,195 — U.S. treasury securities 996 — — 996 — 996 Subtotal 6,191 — — 6,191 5,195 996 Level II: U.S. government and agency securities 22,402 1 — 22,403 22,403 — Total $ 40,419 $ 1 $ — $ 40,420 $ 39,424 $ 996 December 31, 2017 Carrying Amount Gross Unrealized Gain Gross Unrealized Loss Fair Value Cash and Cash Equivalents Short-Term Marketable Securities Assets: Cash $ 20,129 $ — $ — $ 20,129 $ 20,129 $ — Available-for-sale: Level I: Money market funds 16,142 — — 16,142 16,142 — U.S. treasury securities 497 497 497 Subtotal 16,639 — — 16,639 16,142 497 Level II: U.S. government and agency securities 26,369 — (1 ) 26,368 21,785 4,583 Total $ 63,137 $ — $ (1 ) $ 63,136 $ 58,056 $ 5,080 |
Intangible Assets, net (Tables)
Intangible Assets, net (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of finite-lived intangible assets | Intangible assets include developed technology related to the DVS acquisition and other intangible assets included in Other non-current assets. Intangible assets, net were as follows (in thousands): June 30, 2018 Gross Amount Accumulated Amortization Net Weighted-Average Amortization Period Developed technology $ 112,000 $ (49,000 ) $ 63,000 10.0 years Patents and licenses 11,274 (6,321 ) 4,953 7.8 years Total intangible assets, net $ 123,274 $ (55,321 ) $ 67,953 December 31, 2017 Gross Amount Accumulated Amortization Net Weighted-Average Amortization Period Developed technology $ 112,000 $ (43,400 ) $ 68,600 10.0 years Patents and licenses 11,274 (5,721 ) 5,553 7.8 years Total intangible assets, net $ 123,274 $ (49,121 ) $ 74,153 |
Schedule of future amortization expense of intangible assets | Based on the carrying value of intangible assets, net as of June 30, 2018 , the annual amortization expense for intangible assets is expected to be as follows (in thousands): Fiscal Year Amortization Expense 2018 (remainder of the year) $ 8,934 2019 12,242 2020 12,241 2021 12,087 2022 12,004 Thereafter 10,445 $ 67,953 |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Inventories | Inventories consisted of the following (in thousands): June 30, 2018 December 31, 2017 Raw materials $ 7,714 $ 7,566 Work-in-process 1,001 929 Finished goods 6,536 6,593 Total inventories, net $ 15,251 $ 15,088 |
Property, plant and equipment, net | Property and equipment, net consisted of the following (in thousands): June 30, 2018 December 31, 2017 Computer equipment and software $ 4,168 $ 4,179 Laboratory and manufacturing equipment 20,145 20,069 Leasehold improvements 7,704 7,799 Office furniture and fixtures 1,865 1,892 Property and equipment, gross 33,882 33,939 Less accumulated depreciation and amortization (23,505 ) (21,646 ) Construction-in-progress 47 8 Property and equipment, net $ 10,424 $ 12,301 |
Schedule of warranty accrual | Activity for our warranty accrual for the three and six months ended June 30, 2018 , and 2017 , which is included in other accrued liabilities, is summarized below (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Beginning balance $ 591 $ 864 $ 699 $ 1,023 Accrual for current period warranties 401 19 738 187 Warranty costs incurred (383 ) (177 ) (828 ) (504 ) Ending balance $ 609 $ 706 $ 609 $ 706 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease payments | Future minimum lease payments and minimum sublease income under non-cancelable operating leases as of June 30, 2018 , were as follows (in thousands): Fiscal Year Minimum Lease Payments Minimum Sublease Income Net Operating Leases 2018 (remainder of the year) $ 1,724 $ — $ 1,724 2019 3,369 — 3,369 2020 1,917 — 1,917 2021 1,237 — 1,237 2022 843 — 843 Thereafter 1,854 — 1,854 Total $ 10,944 $ — $ 10,944 |
Information about Geographic 28
Information about Geographic Areas (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Product revenue by geography based on billing address of customers | The following table presents the total revenue by geographic area of our customers for each period presented (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 United States $ 12,042 $ 11,674 $ 22,158 $ 23,505 Europe 9,109 7,748 17,582 15,384 Asia-Pacific 4,799 3,866 10,740 8,853 Other 478 624 1,196 1,703 Total revenue $ 26,428 $ 23,912 $ 51,676 $ 49,445 |
Description of Business (Detail
Description of Business (Details) | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Incorporation of the company | May 11, 1999 |
Reincorporation of the company | 2007-07 |
Summary of Significant Accoun30
Summary of Significant Accounting Policies - Net Loss per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potentially dilutive common shares excluded from the computation of diluted net loss per share (shares) | 25,742 | 8,126 | 25,742 | 8,126 |
Stock options, restricted stock units and performance awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potentially dilutive common shares excluded from the computation of diluted net loss per share (shares) | 4,586 | 4,528 | 4,586 | 4,528 |
Convertible Notes | Exchange Convertible Senior Notes due 2034 | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potentially dilutive common shares excluded from the computation of diluted net loss per share (shares) | 19,036 | 0 | 19,036 | 0 |
Convertible Notes | Convertible Notes Potential Make-Whole Shares | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potentially dilutive common shares excluded from the computation of diluted net loss per share (shares) | 1,204 | 0 | 1,204 | 0 |
Convertible Notes | Senior Convertible Notes due 2034 | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potentially dilutive common shares excluded from the computation of diluted net loss per share (shares) | 916 | 3,598 | 916 | 3,598 |
Summary of Significant Accoun31
Summary of Significant Accounting Policies - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Balance at beginning period | $ 30,935 | $ 30,935 | |||
Other comprehensive (loss) income | $ 28 | $ 77 | 70 | $ 112 | |
Balance at ending period | 34,833 | 34,833 | |||
Foreign Currency Translation Adjustment | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Balance at beginning period | (532) | (575) | (575) | ||
Other comprehensive (loss) income | 26 | 43 | |||
Balance at ending period | (506) | (532) | (506) | ||
Net Unrealized Gain on Securities | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Balance at beginning period | 0 | 1 | 1 | ||
Other comprehensive (loss) income | 2 | (1) | |||
Balance at ending period | 2 | 0 | 2 | ||
Accumulated Other Comprehensive Loss | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Balance at beginning period | (532) | (574) | (574) | ||
Other comprehensive (loss) income | 28 | 42 | |||
Balance at ending period | $ (504) | $ (532) | $ (504) |
Summary of Significant Accoun32
Summary of Significant Accounting Policies - Convertible Notes (Details) - Convertible Debt - USD ($) | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Feb. 28, 2014 | Feb. 04, 2014 |
Extinguishment of Debt [Line Items] | |||||
Aggregate principal loan outstanding | $ 51,300,000 | $ 201,300,000 | |||
Senior Convertible Notes due 2034 | |||||
Extinguishment of Debt [Line Items] | |||||
Principal amount of notes | $ 201,300,000 | $ 201,300,000 | |||
Interest rate on notes | 2.75% | 2.75% | 2.75% | ||
Aggregate principal loan outstanding | $ 51,250,000 | 201,250,000 | |||
Exchange Convertible Senior Notes due 2034 | |||||
Extinguishment of Debt [Line Items] | |||||
Principal amount of notes | $ 150,000,000 | $ 150,000,000 | |||
Interest rate on notes | 2.75% | 2.75% | |||
Aggregate principal loan outstanding | $ 150,000,000 | $ 150,000,000 | $ 0 |
Summary of Significant Accoun33
Summary of Significant Accounting Policies - Recent Accounting Changes and Accounting Pronouncements Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accumulated deficit | $ (529,325) | $ (499,838) | $ (500,196) |
Increase in current assets | 75,247 | 94,954 | $ 94,801 |
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accumulated deficit | 358 | ||
Increase in current assets | $ 170 | 153 | |
Increase in non-current assets | $ 200 |
Summary of Significant Accoun34
Summary of Significant Accounting Policies - Summary of Cumulative Effect of New Pronouncement Adoption (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Prepaid expenses and other current assets | $ 2,702 | $ 1,681 | $ 1,528 |
Total current assets | 75,247 | 94,954 | 94,801 |
Other non-current assets | 6,324 | 7,746 | 7,541 |
Total assets | 259,103 | 287,709 | 287,351 |
Accumulated deficit | (529,325) | (499,838) | (500,196) |
Total stockholders’ equity | 34,833 | 31,293 | 30,935 |
Total liabilities and stockholders’ equity | 259,103 | 287,709 | 287,351 |
Calculated under Revenue Guidance in Effect before Topic 606 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Prepaid expenses and other current assets | 2,532 | 1,528 | |
Total current assets | 75,077 | 94,801 | |
Other non-current assets | 6,086 | 7,541 | |
Total assets | 258,695 | 287,351 | |
Accumulated deficit | (500,196) | ||
Total stockholders’ equity | 34,425 | 30,935 | |
Total liabilities and stockholders’ equity | 258,695 | $ 287,351 | |
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Prepaid expenses and other current assets | 170 | 153 | |
Total current assets | 170 | 153 | |
Other non-current assets | 238 | 205 | |
Total assets | 408 | 358 | |
Accumulated deficit | 358 | ||
Total stockholders’ equity | 408 | 358 | |
Total liabilities and stockholders’ equity | $ 408 | $ 358 |
Summary of Significant Accoun35
Summary of Significant Accounting Policies - Summary of New Accounting Adoption Impact on Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Selling, general and administrative | $ 18,987 | $ 20,975 | $ 37,792 | $ 43,551 |
Total costs and expenses | 39,213 | 40,399 | 77,094 | 83,469 |
Loss from operations | (12,785) | (16,487) | (25,418) | (34,024) |
Loss before income taxes | (16,445) | (17,760) | (30,875) | (36,742) |
Net loss | (16,241) | $ (16,933) | (29,488) | $ (34,134) |
Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Selling, general and administrative | 19,004 | 37,842 | ||
Total costs and expenses | 39,230 | 77,144 | ||
Loss from operations | (12,802) | (25,468) | ||
Loss before income taxes | (16,462) | (30,925) | ||
Net loss | (16,258) | (29,538) | ||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Selling, general and administrative | (17) | (50) | ||
Total costs and expenses | (17) | (50) | ||
Loss from operations | 17 | 50 | ||
Loss before income taxes | 17 | 50 | ||
Net loss | $ 17 | $ 50 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies - Summary of New Accounting Adoption Impact on Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Prepaid expenses and other current assets | $ 2,702 | $ 1,681 | $ 1,528 |
Total current assets | 75,247 | 94,954 | 94,801 |
Other non-current assets | 6,324 | 7,746 | 7,541 |
Total assets | 259,103 | 287,709 | 287,351 |
Stockholders' equity | 34,833 | 31,293 | 30,935 |
Total liabilities and stockholders’ equity | 259,103 | 287,709 | 287,351 |
Calculated under Revenue Guidance in Effect before Topic 606 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Prepaid expenses and other current assets | 2,532 | 1,528 | |
Total current assets | 75,077 | 94,801 | |
Other non-current assets | 6,086 | 7,541 | |
Total assets | 258,695 | 287,351 | |
Stockholders' equity | 34,425 | 30,935 | |
Total liabilities and stockholders’ equity | 258,695 | $ 287,351 | |
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Prepaid expenses and other current assets | 170 | 153 | |
Total current assets | 170 | 153 | |
Other non-current assets | 238 | 205 | |
Total assets | 408 | 358 | |
Stockholders' equity | 408 | 358 | |
Total liabilities and stockholders’ equity | $ 408 | $ 358 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Deferred service contracts revenue | $ 15.5 | $ 15.5 | $ 15.2 |
Revenue recognized at opening | 3.2 | 6.3 | |
Additional advanced payments | 2.8 | 6.6 | |
Capitalized costs during period | 0 | 0 | |
Commission Costs | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Capitalized costs | $ 0.4 | $ 0.4 | $ 0.4 |
Minimum | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Invoicing period | 30 days | ||
Revenue recognition period | 1 year | ||
Minimum | Commission Costs | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Contract amortization period | 1 year | ||
Maximum | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Invoicing period | 60 days | ||
Revenue recognition period | 3 years | ||
Maximum | Commission Costs | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Contract amortization period | 3 years |
Revenue - Summary of Expected T
Revenue - Summary of Expected Timing of Revenue Recognition (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-07-01 | |
Revenue from Contract with Customer [Abstract] | |
Total expected revenue recognition | $ 5,494 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected revenue recognition period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Total expected revenue recognition | $ 6,973 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected revenue recognition period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Total expected revenue recognition | $ 3,302 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected revenue recognition period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Total expected revenue recognition | $ 17,092 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected revenue recognition period |
Revenue - Summary of Disaggrega
Revenue - Summary of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | $ 26,428 | $ 23,912 | $ 51,676 | $ 49,445 |
Year Over Year Change | 2,516 | 2,231 | ||
Instruments | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | 10,421 | 9,928 | 17,941 | 20,665 |
Year Over Year Change | 493 | (2,724) | ||
Consumables | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | 11,356 | 9,572 | 24,313 | 20,142 |
Year Over Year Change | 1,784 | 4,171 | ||
Product revenue | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | 21,777 | 19,500 | 42,254 | 40,807 |
Year Over Year Change | 2,277 | 1,447 | ||
Services | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | 4,651 | 4,319 | 9,422 | 8,486 |
Year Over Year Change | 332 | 936 | ||
License | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | 0 | 93 | 0 | 152 |
Year Over Year Change | (93) | (152) | ||
United States | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | 12,042 | 11,674 | 22,158 | 23,505 |
Year Over Year Change | 368 | (1,347) | ||
Europe | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | 9,109 | 7,748 | 17,582 | 15,384 |
Year Over Year Change | 1,361 | 2,198 | ||
Asia-Pacific | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | 4,799 | 3,866 | 10,740 | 8,853 |
Year Over Year Change | 933 | 1,887 | ||
Other | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | 478 | $ 624 | 1,196 | $ 1,703 |
Year Over Year Change | $ (146) | $ (507) |
Convertible Notes - Narrative (
Convertible Notes - Narrative (Details) - USD ($) | Feb. 04, 2014 | Mar. 31, 2018 | Feb. 28, 2014 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||||||
Common stock, par value (usd per share) | $ 0.001 | $ 0.001 | $ 0.001 | |||
Debt offering-related expenses | $ 2,638,000 | $ 0 | ||||
Convertible Debt | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal loan outstanding | $ 51,300,000 | $ 201,300,000 | ||||
Convertible Debt | Senior Convertible Notes due 2034 | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of notes | $ 201,300,000 | $ 201,300,000 | ||||
Interest rate on notes | 2.75% | 2.75% | 2.75% | |||
Initial conversion rate of notes (shares) | 17.8750 | |||||
Principal amount of notes | $ 1,000 | |||||
Initial conversion price of stock (usd per share) | $ 55.94 | |||||
Debt instrument redemption price when undergo fundamental change | 100.00% | |||||
Proceeds from issuance of convertible notes, net | $ 195,200,000 | |||||
Debt offering-related expenses | 1,100,000 | |||||
Underwriting discount | $ 6,000,000 | $ 1,264,000 | 5,087,000 | |||
Aggregate principal loan outstanding | 51,250,000 | 201,250,000 | ||||
Convertible Debt | Senior Convertible Notes due 2034 | February 6, 2018 - February 6, 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Debt redemption conditioned upon common stock value exceeding a percentage of the conversion price | 130.00% | |||||
Convertible Debt | Senior Convertible Notes due 2034 | On or after February 6, 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument redemption price | 100.00% | |||||
Convertible Debt | Senior Convertible Notes due 2034 | February 5, 2021, February 6, 2024, and February 6, 2029 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument redemption price | 100.00% | |||||
Convertible Debt | Exchange Convertible Senior Notes due 2034 | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of notes | $ 150,000,000 | $ 150,000,000 | ||||
Interest rate on notes | 2.75% | 2.75% | ||||
Initial conversion rate of notes (shares) | 126.9438 | |||||
Common stock, par value (usd per share) | $ 0.001 | |||||
Principal amount of notes | $ 1,000 | |||||
Initial conversion price of stock (usd per share) | $ 7.88 | |||||
Debt redemption conditioned upon common stock value exceeding a percentage of the conversion price | 110.00% | |||||
Debt instrument redemption price when undergo fundamental change | 100.00% | |||||
Underwriting discount | $ 32,253,000 | 0 | ||||
Aggregate principal loan outstanding | $ 150,000,000 | 150,000,000 | $ 0 | |||
Fair value of debt | 145,500,000 | |||||
Gain on extinguishment of convertible notes | $ 100,000 | |||||
Debt instrument, redemption price, percentage of principal amount redeemed | 120.00% | |||||
Value of conversion option recorded in additional paid in capital | $ 29,300,000 | |||||
Offering related costs | 2,800,000 | $ 2,800,000 | ||||
Debt issuance costs | 2,200,000 | |||||
Equity issuance costs | $ 600,000 |
Convertible Notes - Components
Convertible Notes - Components of Notes (Details) - Convertible Debt - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Feb. 28, 2014 | Feb. 04, 2014 |
Debt Instrument [Line Items] | |||||
Principal amount of Notes | $ 51,300 | $ 201,300 | |||
Net carrying value of convertible notes | $ 166,758 | 195,238 | |||
Senior Convertible Notes due 2034 | |||||
Debt Instrument [Line Items] | |||||
Interest rate on notes | 2.75% | 2.75% | 2.75% | ||
Principal amount of Notes | $ 51,250 | 201,250 | |||
Unamortized debt discount | (1,264) | (5,087) | $ (6,000) | ||
Unamortized debt issuance cost | (230) | (925) | |||
Net carrying value of convertible notes | $ 49,756 | 195,238 | |||
Exchange Convertible Senior Notes due 2034 | |||||
Debt Instrument [Line Items] | |||||
Interest rate on notes | 2.75% | 2.75% | |||
Principal amount of Notes | $ 150,000 | $ 150,000 | 0 | ||
Premium accretion of 2018 Notes | 1,363 | 0 | |||
Unamortized debt discount | (32,253) | 0 | |||
Unamortized debt issuance cost | (2,108) | 0 | |||
Net carrying value of convertible notes | $ 117,002 | $ 0 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Investments and Cash Equivalents (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Carrying Amount | $ 40,419 | $ 63,137 |
Gross Unrealized Gain | 1 | 0 |
Gross Unrealized Loss | 0 | (1) |
Fair Value | 40,420 | 63,136 |
Cash and Cash Equivalents | 39,424 | 58,056 |
Short-Term Marketable Securities | 996 | 5,080 |
Cash | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Carrying Amount | 11,826 | 20,129 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | 11,826 | 20,129 |
Cash and Cash Equivalents | 11,826 | 20,129 |
Short-Term Marketable Securities | 0 | 0 |
Level I: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Carrying Amount | 6,191 | 16,639 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | 6,191 | 16,639 |
Cash and Cash Equivalents | 5,195 | 16,142 |
Short-Term Marketable Securities | 996 | 497 |
Level I: | Money market funds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Carrying Amount | 5,195 | 16,142 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | 5,195 | 16,142 |
Cash and Cash Equivalents | 5,195 | 16,142 |
Short-Term Marketable Securities | 0 | 0 |
Level I: | U.S. treasury securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Carrying Amount | 996 | 497 |
Gross Unrealized Gain | 0 | |
Gross Unrealized Loss | 0 | |
Fair Value | 996 | 497 |
Cash and Cash Equivalents | 0 | |
Short-Term Marketable Securities | 996 | 497 |
Level II: | U.S. government and agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Carrying Amount | 22,402 | 26,369 |
Gross Unrealized Gain | 1 | 0 |
Gross Unrealized Loss | 0 | (1) |
Fair Value | 22,403 | 26,368 |
Cash and Cash Equivalents | 22,403 | 21,785 |
Short-Term Marketable Securities | $ 0 | $ 4,583 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments | $ 996,000 | $ 5,080,000 | |
Convertible Debt | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Aggregate principal loan outstanding | 51,300,000 | 201,300,000 | |
Convertible Debt | Exchange Convertible Senior Notes due 2034 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value disclosure of notes | 139,300,000 | ||
Aggregate principal loan outstanding | 150,000,000 | $ 150,000,000 | 0 |
Par value of debt | 150,000,000 | $ 150,000,000 | |
Level 2 | Convertible Debt | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value disclosure of notes | $ 41,500,000 | $ 166,200,000 |
Intangible Assets, net - Schedu
Intangible Assets, net - Schedule of Finite-lived Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 123,274 | $ 123,274 |
Accumulated Amortization | (55,321) | (49,121) |
Net | 67,953 | 74,153 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 112,000 | 112,000 |
Accumulated Amortization | (49,000) | (43,400) |
Net | $ 63,000 | $ 68,600 |
Weighted-Average Amortization Period | 10 years | 10 years |
Patents and licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 11,274 | $ 11,274 |
Accumulated Amortization | (6,321) | (5,721) |
Net | $ 4,953 | $ 5,553 |
Weighted-Average Amortization Period | 7 years 9 months 18 days | 7 years 9 months 18 days |
Intangible Assets, net - Narrat
Intangible Assets, net - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2014 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization of intangible assets | $ 5,600 | $ 5,600 | |||
DVS Sciences, Inc. | Developed technology | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Estimated fair value of intangible assets acquired | $ 112,000 | ||||
Useful life of acquired intangible assets | 10 years | ||||
Amortization of intangible assets | $ 2,800 | $ 2,800 | $ 5,600 | $ 5,600 |
Intangible Assets, net - Future
Intangible Assets, net - Future Amortization Expense (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2018 (remainder of the year) | $ 8,934 | |
2,019 | 12,242 | |
2,020 | 12,241 | |
2,021 | 12,087 | |
2,022 | 12,004 | |
Thereafter | 10,445 | |
Net | $ 67,953 | $ 74,153 |
Balance Sheet Details - Invento
Balance Sheet Details - Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Balance Sheet Related Disclosures [Abstract] | ||
Raw materials | $ 7,714 | $ 7,566 |
Work-in-process | 1,001 | 929 |
Finished goods | 6,536 | 6,593 |
Total inventories, net | $ 15,251 | $ 15,088 |
Balance Sheet Details - Propert
Balance Sheet Details - Property and Equipment, net (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, excluding construction in process, gross | $ 33,882 | $ 33,939 |
Less accumulated depreciation and amortization | (23,505) | (21,646) |
Construction-in-progress | 47 | 8 |
Property and equipment, net | 10,424 | 12,301 |
Computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,168 | 4,179 |
Laboratory and manufacturing equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 20,145 | 20,069 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 7,704 | 7,799 |
Office furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,865 | $ 1,892 |
Balance Sheet Details - Warrant
Balance Sheet Details - Warranty (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Beginning balance | $ 591 | $ 864 | $ 699 | $ 1,023 |
Accrual for current period warranties | 401 | 19 | 738 | 187 |
Warranty costs incurred | (383) | (177) | (828) | (504) |
Ending balance | $ 609 | $ 706 | $ 609 | $ 706 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Aug. 31, 2017 | Jul. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | ||||||
Base rent obligations | $ 1 | $ 1 | $ 2.2 | $ 2.6 | ||
Thermo | ||||||
Loss Contingencies [Line Items] | ||||||
Litigation settlement awarded to other party | $ 3 | |||||
Payments for legal settlements | $ 3 | |||||
Insurance recoveries | $ 1 |
Commitments and Contingencies51
Commitments and Contingencies - Future Minimum Rental Payments (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Minimum Lease Payments | |
2018 (remainder of the year) | $ 1,724 |
2,019 | 3,369 |
2,020 | 1,917 |
2,021 | 1,237 |
2,022 | 843 |
Thereafter | 1,854 |
Total minimum payments | 10,944 |
Minimum Sublease Income | |
2018 (remainder of the year) | 0 |
2,019 | 0 |
2,020 | 0 |
2,021 | 0 |
2,022 | 0 |
Thereafter | 0 |
Total | 0 |
Net Operating Leases | |
2018 (remainder of the year) | 1,724 |
2,019 | 3,369 |
2,020 | 1,917 |
2,021 | 1,237 |
2,022 | 843 |
Thereafter | 1,854 |
Total | $ 10,944 |
Stock-Based Compensation - Equi
Stock-Based Compensation - Equity Incentive Plans Excluding Stock Option Exchange Program (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 2 | $ 2.3 | $ 3.8 | $ 4.8 | ||
Stock options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total unrecognized compensation cost related to stock-based compensation arrangements | $ 4.9 | $ 4.9 | ||||
Unrecognized compensation cost related to stock-based compensation arrangements average recognition period | 3 years | |||||
Employee stock options granted (shares) | 368,639 | 661,539 | ||||
Award grant date fair value | $ 1.2 | $ 2.2 | ||||
Vesting period | 4 years | |||||
Stock options | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Exercise price of options granted (usd per share) | $ 5.09 | $ 5.09 | ||||
Stock options | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Exercise price of options granted (usd per share) | $ 5.90 | $ 6.33 | ||||
Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total unrecognized compensation cost related to stock-based compensation arrangements | $ 11.9 | $ 11.9 | ||||
Unrecognized compensation cost related to stock-based compensation arrangements average recognition period | 3 years 2 months 12 days | |||||
Award grant date fair value | $ 6 | $ 6.6 | ||||
Number of stock units granted (shares) | 1,147,449 | 1,231,737 | ||||
Vesting period | 4 years | |||||
Restricted Stock Units (RSUs) | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average fair value per stock units granted (usd per share) | $ 5.09 | |||||
Restricted Stock Units (RSUs) | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average fair value per stock units granted (usd per share) | $ 6.14 | $ 7.81 | ||||
Performance-based options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total unrecognized compensation cost related to stock-based compensation arrangements | $ 1.5 | $ 1.5 | ||||
Unrecognized compensation cost related to stock-based compensation arrangements average recognition period | 2 years 9 months 18 days | |||||
Vesting period | 3 years | |||||
Performance-based options | Executive officers | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Employee stock options granted (shares) | 184,050 | |||||
Exercise price of options granted (usd per share) | $ 7.10 | |||||
Award grant date fair value | $ 1.7 | |||||
Number of stock units granted (shares) | 167,000 | 167,000 | ||||
Performance-based options | Minimum | Executive officers | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average fair value per stock units granted (usd per share) | $ 10.09 | $ 10.09 |
Stock-Based Compensation - 2018
Stock-Based Compensation - 2018 Performance Stock Units (Details) - Executive officers - Performance-based options - $ / shares | 3 Months Ended | 6 Months Ended |
Mar. 31, 2018 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of stock units granted (shares) | 167,000 | 167,000 |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting percentage | 0.00% | |
Weighted average fair value per stock units granted (usd per share) | $ 10.09 | $ 10.09 |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting percentage | 200.00% |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Exchange Program (Details) $ / shares in Units, $ in Millions | Sep. 20, 2017employee$ / sharesshares | Sep. 20, 2017USD ($)employee$ / sharesshares | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Aug. 23, 2017$ / shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Option exercise price (usd per share) | $ / shares | $ 5.13 | $ 5.13 | |||||
Share price (usd per share) | $ / shares | $ 5.13 | $ 5.13 | |||||
Number of eligible employees electing to exchange options (employee) | employee | 115 | 115 | |||||
Stock-based compensation expense | $ | $ 2 | $ 2.3 | $ 3.8 | $ 4.8 | |||
Stock options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 4 years | ||||||
Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 4 years | ||||||
Stock Option Exchange Program | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares of common stock exchanged for options (shares) | shares | 1,204,198 | ||||||
Percentage of outstanding stock underlying eligible options | 50.02% | ||||||
Vesting period | 3 years | ||||||
Stock-based compensation expense | $ | $ 0 | ||||||
Stock Option Exchange Program | Stock options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options issued (shares) | shares | 399,117 | ||||||
Stock Option Exchange Program | Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options issued (shares) | shares | 54,944 | ||||||
Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Option exercise price (usd per share) | $ / shares | $ 4.37 |
Stock-Based Compensation - 2017
Stock-Based Compensation - 2017 Employee Stock Purchase Plan (Details) - 2017 Employee Stock Purchase Plan - ESPP | 1 Months Ended |
Aug. 31, 2017USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Duration of plan | 6 months |
Maximum employee subscription rate | 10.00% |
Maximum employee purchase amount | $ 25,000 |
Purchase price of common stock, percent | 85.00% |
Stock-Based Compensation - 2016
Stock-Based Compensation - 2016 Performance-based Stock Options and Restricted Stock Units (Details) - $ / shares | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2016 | |
Executive officers | Performance-based options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee stock options granted (shares) | 184,050 | ||
Number of stock units granted (shares) | 167,000 | 167,000 | |
Exercise price of options granted (usd per share) | $ 7.10 | ||
Non-executive employees | Performance-based RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock units granted (shares) | 87,620 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Income tax benefit | $ 204 | $ 827 | $ 1,387 | $ 2,608 |
Information about Geographic 58
Information about Geographic Areas - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)segment | Jun. 30, 2017USD ($) | |
Concentration Risk [Line Items] | ||||
Number of reporting segments (segment) | segment | 1 | |||
Total revenue | $ 26,428 | $ 23,912 | $ 51,676 | $ 49,445 |
Revenue from Contract with Customer | China | ||||
Concentration Risk [Line Items] | ||||
Concentration risk percent | 9.00% | 12.00% | 11.00% | 11.00% |
Total revenue | $ 2,300 | $ 2,800 | ||
Revenue from Contract with Customer | United Kingdom | ||||
Concentration Risk [Line Items] | ||||
Concentration risk percent | 10.00% | 12.00% | 10.00% | 10.00% |
Information about Geographic 59
Information about Geographic Areas - Product Revenue by Geography (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Total product revenue | ||||
Total revenue | $ 26,428 | $ 23,912 | $ 51,676 | $ 49,445 |
United States | ||||
Total product revenue | ||||
Total revenue | 12,042 | 11,674 | 22,158 | 23,505 |
Europe | ||||
Total product revenue | ||||
Total revenue | 9,109 | 7,748 | 17,582 | 15,384 |
Asia-Pacific | ||||
Total product revenue | ||||
Total revenue | 4,799 | 3,866 | 10,740 | 8,853 |
Other | ||||
Total product revenue | ||||
Total revenue | $ 478 | $ 624 | $ 1,196 | $ 1,703 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) | 1 Months Ended | 6 Months Ended | |||
Aug. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Feb. 04, 2014 | |
Subsidiary, Sale of Stock [Line Items] | |||||
Equity offering program, authorized amount (up to) | $ 30,000,000 | ||||
Common stock, par value (usd per share) | $ 0.001 | $ 0.001 | $ 0.001 | ||
Net proceeds from issuance of common stock | $ 562,000 | $ 0 | |||
At-the-market Equity Offering Program | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Common stock, par value (usd per share) | $ 0.001 | ||||
Gross proceeds from issuance of common stock through at-the-market offering | $ 30,000,000 | ||||
Net proceeds from issuance of common stock | 28,800,000 | ||||
Commission expense | $ 700,000 | ||||
At-the-market Equity Offering Program | Common Stock | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Shares sold (shares) | 9,090,909 | ||||
Stock issuance costs | $ 500,000 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - Silicon Valley Bank - Secured Debt - Revolving Credit Facility | Aug. 02, 2018USD ($) |
Subsequent Event [Line Items] | |
Maximum borrowing capacity | $ 15,000,000 |
Maximum borrowing capacity, percentage of eligible receivables | 85.00% |
Maximum borrowing capacity, percentage of eligible inventory | 50.00% |
Interest rate on notes | 5.50% |
Increase in interest due to default | 5.00% |
Period One | |
Subsequent Event [Line Items] | |
Percent of prepayment fee | 2.00% |
Period Two | |
Subsequent Event [Line Items] | |
Percent of prepayment fee | 1.00% |
Prime Rate | |
Subsequent Event [Line Items] | |
Basis spread on variable rate | 0.50% |