Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 01, 2019 | Jun. 30, 2018 | |
Document Information [Line Items] | |||
Entity Registrant Name | CUTERA INC | ||
Entity Central Index Key | 0001162461 | ||
Trading Symbol | cutr | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Common Stock, Shares Outstanding (in shares) | 14,014,511 | ||
Entity Public Float | $ 418 | ||
Entity Shell Company | false | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 26,052 | $ 14,184 |
Marketable investments | 9,523 | 21,728 |
Accounts receivable, net of allowance for doubtful accounts of $1,257 and $9, respectively | 19,637 | 20,777 |
Inventories | 28,014 | 28,782 |
Other current assets and prepaid expenses | 3,972 | 2,903 |
Total current assets | 87,198 | 88,374 |
Property and equipment, net | 2,672 | 2,096 |
Deferred tax assets | 457 | 19,055 |
Goodwill | 1,339 | 1,339 |
Other long-term assets | 5,971 | 374 |
Total assets | 97,637 | 111,238 |
Current liabilities: | ||
Accounts payable | 11,279 | 7,002 |
Accrued liabilities | 23,300 | 26,848 |
Extended warranty liabilities | 3,159 | |
Deferred revenue | 9,882 | 9,461 |
Total current liabilities | 47,620 | 43,311 |
Deferred revenue, net of current portion | 2,684 | 2,195 |
Income tax liability | 394 | 379 |
Other long-term liabilities | 553 | 460 |
Total liabilities | 51,251 | 46,345 |
Commitments and contingencies (Note 11) | ||
Stockholders’ equity: | ||
Common stock, $0.001 par value: Authorized: 50,000,000 shares; Issued and outstanding: 13,968,852 and13,477,973 shares at December 31, 2018 and 2017, respectively | 14 | 13 |
Additional paid-in capital | 70,451 | 62,025 |
Retained earnings (accumulated deficit) | (24,010) | 2,947 |
Accumulated other comprehensive loss | (69) | (92) |
Total stockholders’ equity | 46,386 | 64,893 |
Total liabilities and stockholders’ equity | $ 97,637 | $ 111,238 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts receivable, allowance for doubtful accounts | $ 1,257 | $ 9 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, issued (in shares) | 13,968,852 | 13,477,973 |
Common stock, outstanding (in shares) | 13,968,852 | 13,477,973 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Net revenue: | ||||
Revenue from Contract with Customer, Including Assessed Tax | $ 162,720 | $ 151,493 | $ 118,056 | |
Cost of revenue: | ||||
Cost of revenue | 82,338 | 65,383 | 49,921 | |
Gross profit | 80,382 | 86,110 | 68,135 | |
Operating expenses: | ||||
Sales and marketing | 58,420 | 52,070 | 41,563 | |
Research and development | 14,359 | 12,874 | 11,232 | |
General and administrative | 20,995 | 14,090 | 12,943 | |
Lease termination income | (4,000) | |||
Total operating expenses | 93,774 | 75,034 | 65,738 | |
Income (loss) from operations | (13,392) | 11,076 | 2,397 | |
Interest and other income(expense), net | (123) | [1] | 884 | 323 |
Income (loss) before income taxes | (13,515) | 11,960 | 2,720 | |
Income tax (benefit) provision | 17,255 | (18,033) | 143 | |
Net income (loss) | $ (30,770) | $ 29,993 | $ 2,577 | |
Net loss per share: | ||||
Basic (in dollars per share) | $ (2.23) | $ 2.16 | $ 0.19 | |
Diluted (in dollars per share) | $ (2.23) | $ 2.04 | $ 0.19 | |
Weighted-average number of shares used in per share calculations: | ||||
Basic (in shares) | 13,771 | 13,873 | 13,225 | |
Diluted (in shares) | 13,771 | 14,728 | 13,753 | |
Product [Member] | ||||
Net revenue: | ||||
Revenue from Contract with Customer, Including Assessed Tax | $ 142,535 | $ 132,660 | $ 99,028 | |
Cost of revenue: | ||||
Cost of revenue | 66,843 | 56,363 | 40,149 | |
Operating expenses: | ||||
Sales and marketing | 58,420 | |||
Service [Member] | ||||
Net revenue: | ||||
Revenue from Contract with Customer, Including Assessed Tax | 20,185 | 18,833 | 19,028 | |
Cost of revenue: | ||||
Cost of revenue | $ 15,495 | $ 9,020 | $ 9,772 | |
[1] | Included in interest and other income, net, is the estimated interest expense for advance payment related to service contracts under the new revenue standard. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net income (loss) | $ (30,770) | $ 29,993 | $ 2,577 |
Available-for-sale investments | |||
Net change in unrealized gain (loss) on available-for-sale investments | 14 | (15) | 30 |
Less: Reclassification adjustment for net gains on investments recognized during the year | 9 | (5) | (3) |
Net change in unrealized gain (loss) on available-for-sale investments | 23 | (20) | 27 |
Tax provision | 10 | ||
Other comprehensive income (loss), net of tax | 23 | (20) | 17 |
Comprehensive income (loss) | $ (30,747) | $ 29,973 | $ 2,594 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balance (in shares) at Dec. 31, 2015 | 12,980,807 | ||||
Balance at Dec. 31, 2015 | $ 13 | $ 79,782 | $ (29,672) | $ (89) | $ 50,034 |
Deferred tax relating to adoption of ASU 2016-09 at Dec. 31, 2015 | 49 | 49 | |||
Issuance of common stock for employee purchase plan (in shares) | 79,922 | ||||
Issuance of common stock for employee purchase plan | 768 | $ 768 | |||
Exercise of stock options (in shares) | 1,051,138 | 1,051,138 | |||
Exercise of stock options | $ 1 | 9,342 | $ 9,342 | ||
Issuance of common stock in settlement of restricted and performance stock units, net of shares withheld for employee taxes, and stock awards (in shares) | 116,833 | ||||
Issuance of common stock in settlement of restricted and performance stock units, net of shares withheld for employee taxes, and stock awards | (618) | (618) | |||
Repurchase of common stock (in shares) | (455,311) | ||||
Repurchase of common stock | (4,873) | (4,873) | |||
Stock-based compensation expense | 3,713 | 3,713 | |||
Net income (loss) | 2,577 | 2,577 | |||
Net change in unrealized loss on available-for-sale investments | 17 | 17 | |||
Balance (in shares) at Dec. 31, 2016 | 13,773,389 | ||||
Balance at Dec. 31, 2016 | $ 14 | 88,114 | (27,046) | (72) | 61,010 |
Issuance of common stock for employee purchase plan (in shares) | 78,479 | ||||
Issuance of common stock for employee purchase plan | 1,059 | $ 1,059 | |||
Exercise of stock options (in shares) | 488,398 | 488,398 | |||
Exercise of stock options | 4,376 | $ 4,376 | |||
Issuance of common stock in settlement of restricted and performance stock units, net of shares withheld for employee taxes, and stock awards (in shares) | 160,309 | ||||
Issuance of common stock in settlement of restricted and performance stock units, net of shares withheld for employee taxes, and stock awards | (1,469) | (1,469) | |||
Repurchase of common stock (in shares) | (1,022,602) | ||||
Repurchase of common stock | $ (1) | (35,165) | (35,166) | ||
Stock-based compensation expense | 5,110 | 5,110 | |||
Net income (loss) | 29,993 | 29,993 | |||
Net change in unrealized loss on available-for-sale investments | (20) | $ (20) | |||
Balance (in shares) at Dec. 31, 2017 | 13,477,973 | 13,477,973 | |||
Balance at Dec. 31, 2017 | $ 13 | 62,025 | 2,947 | (92) | $ 64,893 |
Issuance of common stock for employee purchase plan (in shares) | 64,511 | ||||
Issuance of common stock for employee purchase plan | $ 1 | 1,680 | $ 1,680 | ||
Exercise of stock options (in shares) | 271,902 | 271,902 | |||
Exercise of stock options | 2,718 | $ 2,718 | |||
Issuance of common stock in settlement of restricted and performance stock units, net of shares withheld for employee taxes, and stock awards (in shares) | 154,466 | ||||
Issuance of common stock in settlement of restricted and performance stock units, net of shares withheld for employee taxes, and stock awards | (3,128) | (3,128) | |||
Stock-based compensation expense | 7,157 | 7,157 | |||
Net income (loss) | (30,770) | (30,770) | |||
Net change in unrealized loss on available-for-sale investments | 23 | 23 | |||
Adjustment to opening balance for ASC 606 adoption at Dec. 31, 2017 | 3,813 | $ 3,813 | |||
Balance (in shares) at Dec. 31, 2018 | 13,968,852 | 13,968,852 | |||
Balance at Dec. 31, 2018 | $ 14 | $ 70,451 | $ (24,010) | $ (69) | $ 46,386 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (30,770) | $ 29,993 | $ 2,577 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Stock-based compensation | 7,157 | 5,110 | 3,713 |
Depreciation and amortization | 1,209 | 1,016 | 982 |
Amortization of contract acquisition costs | 1,834 | ||
Change in deferred tax assets | 17,438 | (18,678) | 22 |
Provision for doubtful accounts receivable | (1,257) | 1 | |
Other | 241 | (51) | (7) |
Changes in assets and liabilities: | |||
Accounts receivable | (117) | (4,229) | (4,899) |
Inventories | 768 | (13,805) | (2,899) |
Other current assets and prepaid expenses | (1,070) | (591) | (432) |
Other long-term assets | (2,754) | 6 | 4 |
Accounts payable | 4,277 | 4,404 | 639 |
Accrued liabilities | (3,781) | 9,345 | 3,461 |
Extended warranty liabilities | 3,159 | ||
Other long-term liabilities | 140 | (329) | |
Deferred revenue | 1,305 | 1,557 | (826) |
Income tax liability | 15 | 211 | (14) |
Net cash provided by operating activities | 308 | 14,287 | 1,992 |
Cash flows from investing activities: | |||
Acquisition of property, equipment and software* | (1,488) | (855) | (537) |
Disposal of property and equipment | 41 | 53 | 20 |
Proceeds from sales of marketable investments | 13,044 | 33,640 | 9,008 |
Proceeds from maturities of marketable investments | 10,050 | 45,812 | 25,810 |
Purchase of marketable investments | (10,874) | (60,956) | (37,693) |
Net cash provided by (used in) investing activities | 10,773 | 17,694 | (3,392) |
Cash flows from financing activities: | |||
Repurchase of common stock | (35,167) | (4,873) | |
Proceeds from exercise of stock options and employee stock purchase plan | 4,399 | 5,435 | 10,111 |
Taxes paid related to net share settlement of equity awards | (3,129) | (1,469) | (618) |
Payments on capital lease obligation | (483) | (371) | (313) |
Net cash provided by (used in) financing activities | 787 | (31,572) | 4,307 |
Net increase (decrease) in cash and cash equivalents | 11,868 | 409 | 2,907 |
Cash and cash equivalents at beginning of year | 14,184 | 13,775 | 10,868 |
Cash and cash equivalents at end of year | 26,052 | 14,184 | 13,775 |
Supplemental cash flow information: | |||
Cash paid for interest | 85 | 70 | 43 |
Cash paid for income taxes | 472 | 220 | 222 |
Supplemental non-cash investing and financing activities: | |||
Assets acquired under capital lease | $ 610 | $ 365 | $ 801 |
Note 1 - Summary of Significant
Note 1 - Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | NOTE 1—SUMMARY Description of Operations and Principles of Consolidation Cutera, Inc. (“Cutera” or the “Company”) is a global provider of laser and energy-based aesthetic systems for practitioners worldwide. The Company designs, develops, manufactures, distributes and markets light and energy-based product platforms for use by physicians and other qualified practitioners, enabling them to offer safe and effective aesthetic treatments to their customers. The Company currently markets the following system platforms: excel, enlighten, Juliet, Secret RF, truSculpt xeo Titan, truSculpt 3D truSculpt iD Juliet Secret RF third Titan , truSculpt 3D truSculpt iD Headquartered in Brisbane, California, the Company has wholly-owned subsidiaries that are currently operational in Australia, Belgium, Canada, France, Germany, Hong Kong, Japan, Spain, Switzerland and the United Kingdom. The Company’s wholly owned subsidiary in Italy is currently dormant. These active subsidiaries market, sell and service the Company’s products outside of the United States. The Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All inter-company transactions and balances have been eliminated. Use of Estimates The preparation of Consolidated Financial Statements in conformity with Generally Accepted Accounting Principles (“GAAP”) requires the Company’s management to make estimates and assumptions that affect the amounts reported of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial Statements and the accompanying notes, and the reported amounts of revenue and expenses during the reported periods. Actual results could differ materially from those estimates. On an ongoing basis, management evaluates its estimates, including those related to warranty obligations, sales commission, accounts receivable and sales allowances, valuation of inventories, fair values of goodwill, useful lives of property and equipment, assumptions regarding variables used in calculating the fair value of the Company's equity awards, expected achievement of performance based vesting criteria, fair value of investments, the standalone selling price of the Company's products and services, the customer life and period of benefit used to capitalize and amortize contracts acquisition costs, variable consideration, contingent liabilities, recoverability of deferred tax assets, and effective income tax rates, among others. Management bases estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. R isks and Uncertainties The Company's future results of operations involve a number of risks and uncertainties. Factors that could affect the Company's future operating results and cause actual results to vary materially from expectations include, but are not Comparability The Company adopted the new revenue standard effective January 1, 2018, not December 31, 2018 December 31, 2018 December 31, 2017. December 31, 2018 December 31, 2017 not December 31, 2018 December 31, 2017. Recent Accounting Pronouncements Not In February 2016, 2016 02, 842 July 2018, 2018 11, 2016 02 2018 2018 11 not July 2018, 2018 10, 842, 2016 02. 2016 02 January 1, 2019 The Company will adopt ASC Topic 842 January 1, 2019, not not The Company expects that this standard will have a material effect on our financial statements. While the Company continues to assess all of the effects of adoption, the Company currently believes the most significant effects relate to the recognition of new right-of-use (“ROU”) assets and lease liabilities on our balance sheet for our auto, office, and embedded leases; and the requirement to provide significant new disclosures about our leasing activities. Upon the adoption of ASC Topic 842, $10.0 $11.0 The new standard also provides practical expedients for an entity’s ongoing accounting. The Company will elect the short-term lease recognition exemption for all leases that qualify. This means, for those leases that qualify, the Company will not not not not Recently Adopted Accounting Pronouncements In May 2014, 2014 09, 606, December 15, 2017, December 15, 2016. first 2018 not See “Revenue Recognition,” for additional accounting policy and transition disclosures. On January 26, 2017, No. 2017 04, 350 one not 2 two 350 20 35 3A The amendment is effective for the Company for its fiscal years beginning after December 15, 2019. January 1, 2017 ( 350 20 65 3 2017 04—Intangibles—Goodwill 350 October 1, 2018. no See ” Goodwill and Other Intangible Assets” in Note 3 In June 2018, No. 2018 07, 718 1 2 3 606. December 15, 2018, no 606. January 1, 2019 not Revenue The Company adopted ASC Topic 606, January 1, 2018, not January 1, 2018. January 1, 2018 606, not 606. Upon adoption of ASC Topic 606, $3.8 14 January 1, 2018 first 2018: ● $237,000 ● $151,000 one ● $210,000 ● $4.7 2.5 ● $1.2 606 The following table summarizes the effects of adopting ASC Topic 606 December 31, 2018: As reported under ASC Topic 606 Adjustments Balances under Prior GAAP (In thousands) Other long-term assets $ 5,971 $ (5,217) $ 754 Deferred revenue 12,566 (106) 12,460 Retained earnings (deficit) (24,010) 4,610 (19,400) The following table summarizes the effects of adopting ASC Topic 606 December 31, 2018: As reported under Topic 606 Adjustments Balances under Prior GAAP (In thousands) Products revenue $ 142,535 $ 274 $ 142,261 Service revenue 20,185 280 19,905 Sales and marketing 58,420 540 58,960 Interest and other income, net* (123) 297 174 * Included in interest and other income, net, is the estimated interest expense for advance payment related to service contracts under the new revenue standard. Adoption of the standard had no As part of the Company's adoption of ASC Topic 606, not one one not not Revenue recognition Revenue recognition- Period before January 1, 2018 - 606 The Company recognized revenue under ASC Topic 605 606 January 1 2018. 605, ● Persuasive evidence of an arrangement exists; ● The price is fixed or determinable; ● Delivery has occurred or services have been rendered; and ● Collectability is reasonably assured. Transfer of title and risk of ownership occurs when the product is shipped to the customer or when the customer receives the product, depending on the nature of the arrangement. Revenue is recorded net of customer and distributor discounts. When collectability is not not Multiple-element Arrangements A multiple-element arrangement includes the sale of one one For multiple-element arrangements, judgments are required as to the allocation of the proceeds received from an arrangement to the multiple elements of the arrangement. For multiple element arrangements the Company allocates revenue to all deliverables based on their relative selling prices in accordance with the FASB Accounting Standards Codification (“ASC”) 605 25. third not With respect to the sale of its earlier generation of the truSculpt truSculpt not truSculpt truSculpt Customer Marketing Arrangements The Company has a customer marketing and incentive program called “Cutera Bucks” for its North America customers through which it offers various sales incentives and discounts and pays or reimburses customers for qualifying expenses associated with practice set-up, advertising procedures related to the system purchased, and other expenses. The Company records such incentives as a reduction of revenue at the time when the sale of the system is recorded. Service Revenue The Company also offers customers extended service contracts. Revenue under service contracts is recognized on a straight-line basis over the period of the applicable service contract. Revenue from services performed in the absence of a service contract, including installation and training revenue, is recognized when the related services are performed and collectability is reasonably assured. Service revenue billed on a time and material basis, from customers whose systems are not December 31, 2017 2016 $18.8 $19.0 Bill and Hold Arrangement Under ASC 605 2017 one third no $938,000 2017. no 2016. Revenue recognition- Period after January 1, 2018 - 606 Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for promised goods or services. The Company’s performance obligations are satisfied either over time or at a point in time. Revenue from performance obligations that are transferred to customers over time accounted for approximately 12% twelve December 31, 2018. The Company has certain system sale arrangements that contain multiple products and services. For these bundled sale arrangements, the Company accounts for individual products and services as separate performance obligations if they are distinct. The Company’s products and services are distinct if a customer can benefit from the product or service on its own or with other resources that are readily available to the customer, and if the Company’s promise to transfer the products or service to the customer is separately identifiable from other promises in the contract. The Company’s system sale arrangements include a combination of the following performance obligations: the system and software license (considered as one For the Company’s system sale arrangements that include an extended service contract, the period of service commences at the expiration of the Company’s standard warranty offered at the time of the system sale. The Company considers the extended service contracts terms in the arrangements that are legally enforceable to be performance obligations. Other than extended service contracts and marketing services (which are satisfied over time), the Company generally satisfies all of the performance obligations at a point in time. Systems, system accessories (hand pieces), training, time and materials services are also sold on a stand-alone basis, and related performance obligations are satisfied at a point in time. For contracts with multiple performance obligations, the Company allocates the transaction price of the contract to each performance obligation on a relative standalone selling price basis. Nature of Products and Services Systems System revenue represents the sale of a system or an upgrade of an existing system. A system consists of a console that incorporates a universal graphic user interface, a laser or other energy based module, control system software and high voltage electronics, as well as one Pearl Pearl Fractional The Company offers customers the ability to select the system that best fits their practice at the time of purchase and then to cost-effectively add applications to their system as their practice grows. This provides customers the flexibility to upgrade their systems whenever they choose and provides the Company with a source of additional Systems revenue. The Company concludes that the system or upgrade and the right to use the embedded software represent a single performance obligation as the software license is integral to the functionality of the system or upgrade. The Company does not enlighten enlighten enlighten For systems sold directly to end-customers that are credit approved, revenue is recognized when the Company transfers control to the end-customer, which occurs when the product is shipped to the customer or when the customer receives the product, depending on the nature of the arrangement. The Company recognizes revenue on a cash basis for system sales to international direct end-customer sales that have not The Company typically receives payment for its system consoles and other accessories within 30 Skincare products The Company sells third third third Consumables (Other accessories) The Company treats its customers' purchases of replacement Titan truSculpt 3D truSculpt iD Juliet Secret RF truSculpt Extended contract services The Company offers post-warranty services to its customers through extended service contracts that cover parts and labor for a term of one, two, or three Training Sales of system to customers include training on the system to be provided within 180 not Customer Marketing Support In North America, the Company offers marketing and consulting phone support to its customers who purchase truSculpt 3D truSculpt iD six six Significant Judgments The Company combines two The Company is required to estimate the total consideration expected to be received from contracts with customers. In limited circumstances, the consideration expected to be received is variable based on the specific terms of the contract The Company has not The Company determines standalone selling price ("SSP") for each performance obligation as follows: Systems: The SSPs for systems are based on directly observable sales in similar circumstances to similar customers. When SSP is not Training: SSP is based on observable price when sold on a standalone basis. Extended warranty/Service contracts: SSP is based on observable price when sold on a standalone basis (by customer type). Customer Marketing Support: SSP is estimated based on cost plus a margin. Set-up /Installation: Set-up or installation for all other systems (excluding the enlighten system) is immaterial in the context of the contract as the set-up or installation for systems other than enlighten. The related costs to complete set-up or installation are immaterial. The calibration and installation service of the enlighten system are treated as separate performance obligations because the Company regularly sells enlighten systems without the calibration and installation service. Loyalty Program The Company launched a customer loyalty program during the third 2018 fifth 5 th The fair value of the reward earned by loyalty program members is included in accrued liabilities and recorded as a reduction of net sales at the time the reward is earned. Cash Equivalents, and Marketable Investments The Company invests its cash primarily in money market funds and in highly liquid debt instruments of U.S. federal and municipal governments and their agencies, commercial paper and corporate debt securities. All highly liquid investments with stated maturities of three three The Company determines the appropriate classification of its investments in marketable securities at the time of purchase and re-evaluates such designation at each balance sheet date. The Company’s marketable securities have been classified and accounted for as available-for-sale securities. Investments with remaining maturities of more than one Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value. The Company’s financial instruments include cash equivalents, accounts receivable, accounts payable and accrued liabilities. Carrying amounts of the Company's financial instruments, approximate their fair values as of the balance sheet dates given their generally short maturities. The fair value hierarchy distinguishes between ( 1 2 three 1 3 three 820: ● Level 1: ● Level 2: not 2 not ● Level 3: no In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company also considers counterparty credit risk in its assessment of fair value. Impairment of Marketable Investments After determining the fair value of available-for-sales debt instruments, gains or losses on these securities are recorded to other comprehensive income, until either the security is sold or the Company determines that the decline in value is other-than-temporary. The primary differentiating factors that the Company considers in classifying impairments as either temporary or other-than-temporary impairments are the Company’s intent and ability to retain the investment in the issuer for a period of time sufficient to allow for any anticipated recovery in market value or the maturity of the investment, the length of the time and the extent to which the market value of the investment has been less than cost and the financial condition and near-term prospects of the issuer. There were no December 31, 2018, 2017, 2016. Allowance for Sales Returns and Doubtful Accounts The allowance for sales returns is based on the Company’s estimates of potential future product returns and other allowances related to current period product revenue. The Company analyzes historical returns, current economic trends and changes in customer demand and acceptance of the Company's products. In cases where the Company is aware of circumstances that may Concentration of Credit Risk and Other Risks and Uncertainties The Company operates in markets that are highly competitive and rapidly changing. Significant technological changes, shifting customer needs, the emergence of competitive products or services with new capabilities and other factors could negatively impact our operating results. The Company is also subject to risks related to changes in the value of our significant balance of financial instruments. Financial instruments that potentially subject the Company to concentrations of risk consist principally of cash, cash equivalents, marketable investments and accounts receivable. The Company’s cash and cash equivalents are primarily invested in deposits and money market accounts with three may not The Company invests in debt instruments, including bonds of the U.S. Government, its agencies and municipalities. The Company has also invested in other high grade investments such as commercial paper and corporate debt securities. The Company has established guidelines relative to credit ratings, diversification and maturities that seek to maintain safety and liquidity. By policy, the Company restricts its exposure to any single issuer by imposing concentration limits. To minimize the exposure due to adverse shifts in interest rates, the Company maintains investments at an average maturity of generally less than twelve Accounts receivable are recorded net of an allowance for doubtful accounts, and are typically unsecured and are derived from revenue earned from worldwide customers. The Company controls credit risk through credit approvals, credit limits, and monitoring procedures. The Company performs credit evaluations of its customers and maintains reserves for potential credit losses. As of December 31, 2018 2017, one 4.9% December 31, 2018, 2017, 2016, 62%, 62%, 55%, 37%, 38%, 45%, No 10% December 31, 2018, 2017, 2016. Supplier concentration The Company relies on third third may Inventories Inventories are stated at the lower of cost and net realizable value, cost being determined on a standard cost basis which approximates actual cost on a first first The Company includes demonstration units within inventories. Demonstration units are carried at cost and amortized over an estimated economic life of two As of December 31, 2018 2017, $2.9 $1.9 Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation. Depreciation expense recognized is on a straight-line basis over the estimated useful lives of the assets, generally as follows: Useful Lives Leasehold improvements Lesser of useful life or term of lease Office equipment and furniture (in years) 3 Machinery and equipment (in years) 3 Upon sale or retirement of property and equipment, the costs and related accumulated depreciation and amortization are removed from the balance sheet and the resulting gain or loss is reflected in operating expenses. Maintenance and repairs are charged to operations as incurred. Depreciation expense related to property and equipment for 2018, 2017 2016, $1.2 $1.0 $0.8 Goodwill and Intangible Assets Goodwill and intangible assets with indefinite useful lives are not fourth may no The Company continues to operate in one December 31, 2018, no December 31, 2018. Warranty Obligations The Company offers post-warranty services to its customers through extended service contracts that cover replacement parts and labor for a term of one, two, or three 14 16 The Company also offers services on a time-and-materials basis for detachable hand piece replacements, parts and labor. These post-warranty services serve as additional sources of recurring revenue from the Company’s installed product base. Deferred Sales Commissions Incremental costs of obtaining a contract, including sales commissions, are capitalized and amortized on a straight-line basis over the expected customer relationship period. The Company uses the portfolio method to recognize the amortization expense related to these capitalized costs related to initial contracts and such expense is recognized over a period associated with the revenue of the related portfolio, which is generally two three Total capitalized costs for the year ended December 31, 2018 $5.2 $1.8 December 31, 2018 Cost of Revenue Cost of revenue consists primarily of material, finished and semi-finished products purchased from third The Company's system sales include a control console, universal graphic user interface, control system software, high voltage electronics and a combination of applications (referred to as hand pieces). Hand pieces are programmed to have a limited number of uses to ensure the safety of the device to patients. The Company sells refurbished hand pieces, or "refills," of its Titan truSculpt 3D Research and Development Expenditures Research and development costs are expensed as incurred and include costs related to research, design, development, testing of products, salaries, benefits and other headcount related costs, facilities, material, third Advertising Costs Advertising costs are included as part of sales and marketing expense and are expensed as incurred. Advertising expenses for 2018, 2017 2016 $2.8 $1.8 $1.3 Stock-based Compensation The Company accounts for share-based employee compensation plans using the fair value recognition and measurement provisions under U.S. GAAP. The Company’s share-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as expense on a straight-line basis over the requisite service period. The Company estimates expected forfeitures at the time of grant and revises, if necessary, in subsequent periods if actual forfeitures differ from those estimated. Expected Term Expected Volatility: 50 50 Risk-Free Interest Rate: ● The fair value of stock options ("options") on the grant date is estimated using the Black-Scholes option-pricing model using the single-option approach. The Black-Scholes option pricing model requires the use of highly subjective and complex assumptions, including the option's expected term and the price volatility of the underlying stock, to determine the fair value of award. The Company recognizes the expense associated with options using a single award approach over the requisite service period. The Company accounts for all stock options awarded to non-employees at the fair value of the consideration received or the fair value of the equity instrument issued, as calculated using the Black-Scholes model. ● The fair value of restricted stock units is determined based on the closing quoted 50 ● The fair value of Performance Stock Units (“PSUs”) that have operational measurement goals, are measured at the 50 may not See Note 9 Income Taxes The Company is subject to taxes on earnings in both the U.S. and various foreign jurisdictions. As a global taxpayer, significant judgments and estimates are required in evaluating our uncertain tax positions and determining our provision for income taxes on earnings. The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not 50% The Company’s effective tax rates have differed from the statutory rate primarily due to changes in the valuation allowance, foreign operations, research and development tax credits, state taxes, and certain benefits realized related to stock option activity. The Company’s current effective tax rate does not Undistributed earnings of the Company’s foreign subsidiaries at December 31, 2018 no 2017 not not In December 2017, No. 118, 118” not one 2017 fourth 2017, December 31, 2017. 2017 fourth 2018. 2017 December 31, 2018. $0.4 $7.3 $0.4 118. In January 2018, 2017 Computation of Net Income ( Loss) per Share Basic net income per share is computed using the weighted average number of shares outstanding during the period. Diluted net income per share is computed using the weighted average number of the Company’s shares and dilutive potential shares outstanding during the period. Dilutive potential shares primarily consist of employee stock options, restricted stock units, and shares to be purchased by employees under the Company’s employee stock purchase plan. GAAP requires that employee equity share options, non-vested shares, and similar equity instruments granted by the Company be treated as potential common shares outstanding in computing diluted earnings per share. Diluted shares outstanding include the dilutive effect of equity awards, which is calculated based on the average share price for each fiscal period using the treasury stock method. Under the treasury stock method, the amount the employee must pay for exercising stock options and the amount of compensation cost for future service that the Company has not Comprehensive Income (Loss) Comprehensive income (loss) includes all changes in stockholders’ equity except those resulting from investments or contributions by stockholders. For the periods presented, the accumulated other comprehensive income (loss) consisted solely of the unrealized gains or losses on the Company's available for- sale investments, net of tax. Foreign Currency The U.S. Dollar is the functional currency of the Company’s subsidiaries. Monetary assets and liabilities are re-measured into U.S. Dollars at the applicable period end exchange rate. Sales and operating expenses are re-measured at average exchange rates in effect during each period. Gains or losses resulting from foreign currency transactions are included in net income (loss) and are insignificant for each of the three December 31, 2017. three December 31, 2018. Segments The Company operates in one one not December 31, 2018, 2017, 89% 98% 13 |
Note 2 - Investment Securities
Note 2 - Investment Securities | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Cash, Cash Equivalents, and Marketable Securities [Text Block] | NOTE 2 —INVESTMENT SECURITIES The following tables summarize cash, cash equivalents and marketable securities (in thousands): December 31, 201 8 20 1 7 Cash and cash equivalents: Cash $ 21,969 $ 14,058 Cash equivalents: Money market funds 4,083 126 Total cash and cash equivalents 26,052 14,184 Marketable securities: U.S. government notes 1,397 11,870 U.S. government agencies 2,677 — Municipal securities 200 200 Commercial paper 2,433 1,833 Corporate debt securities 2,816 7,825 Total marketable securities 9,523 21,728 Total cash, cash equivalents and marketable securities $ 35,575 $ 35,912 The following table summarizes unrealized gains and losses related to the Company’s marketable investments (in thousands): December 31, 201 8 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Cash and cash equivalents $ 26,052 $ — $ — $ 26,052 Marketable investments U.S. government notes 1,397 — — 1,397 U.S. government agencies 2,677 — — 2,677 Municipal securities 200 — — 200 Commercial paper 2,433 — — 2,433 Corporate debt securities 2,825 — (9 ) 2,816 Total marketable securities 9,532 (9 ) 9,523 Total cash, cash equivalents and marketable securities $ 35,584 $ $ (9 ) $ 35,575 December 31, 201 7 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Cash and cash equivalents $ 14,184 $ — $ — $ 14,184 Marketable investments U.S. government notes 11,885 — (15 ) 11,870 Municipal securities 201 — (1 ) 200 Commercial paper 1,836 — (3 ) 1,833 Corporate debt securities 7,838 2 (15 ) 7,825 Total marketable securities 21,760 2 (34 ) 21,728 Total cash, cash equivalents and marketable securities $ 35,944 $ 2 $ (34 ) $ 35,912 No 12 December 31, 2018 2017. The unrealized losses on the available-for-sale investments are related to corporate securities and government securities. The Company determined these unrealized losses to be temporary. Factors considered in determining whether a loss is temporary included the length of time and extent to which the investment’s fair value has been less than the cost basis; the financial condition and near-term prospects of the investee; extent of the loss related to credit of the issuer; the expected cash flows from the security; the Company’s intent to sell the security; and whether or not The following table summarizes the estimated fair value of the Company’s marketable investments classified by the contractual maturity date of the security as of December 31, 2018 ( Amount Due in less than one year $ 9,121 Due in 1 to 3 years 402 Total marketable securities $ 9,523 Fair Value Measurements The following table summarizes financial assets measured and recognized at fair value on a recurring basis and classified under the appropriate level of the fair value hierarchy as described above (in thousands): December 31, 201 8 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 4,083 $ — $ — $ 4,083 Short term marketable investments: Available-for-sale securities — 9,523 — 9,523 Total assets at fair value $ 4,083 $ 9,523 $ — $ 13,606 December 31, 201 7 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 126 $ — $ — $ 126 Commercial paper — — — — Short term marketable investments: Available-for-sale securities — 21,728 — 21,728 Total assets at fair value $ 126 $ 21,728 $ — $ 21,854 The Company’s Level 1 2 may two 2 December 31, 2018 12 no December 31, 2018 2017. |
Note 3 - Balance Sheet Detail
Note 3 - Balance Sheet Detail | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Supplemental Balance Sheet Disclosures [Text Block] | NOTE 3 —BALANCE SHEET DETAIL Inventories Inventories consist of the following (in thousands): December 31, 201 8 201 7 Raw materials $ 16,991 $ 19,160 Work in process 2,306 2,744 Finished goods 8,717 6,878 Total $ 28,014 $ 28,782 Property and Equipment, net Property and equipment, net, consists of the following (in thousands): December 31, 201 8 201 7 Leasehold improvements $ 660 $ 640 Office equipment and furniture 2,835 2,370 Machinery and equipment 7,304 6,277 10,799 9,287 Less: Accumulated depreciation (8,127) (7,191) Property and equipment, net $ 2,672 $ 2,096 Included in machinery and equipment are financed vehicles used by the Company’s North American sales employees. As of December 31, 2018 2017, $1.9 $1.6 $1.1 $0.7 $0.4 Goodwill and Other Intangible Assets Goodwill and other intangible assets comprise a patent sublicense acquired from Palomar in 2006, 2013. December 31, 2018 2017 Gross Carrying Amount Accumulated Amortization & Impairment Amount Net Amount December 31, 201 8 Patent sublicense $ 1,218 $ 1,218 $ — Customer relationship intangible related to acquisition 2,510 2,510 — Other identified intangible assets related to acquisition 780 780 — Other intangible 155 155 — Goodwill 1,339 — 1,339 Total $ 6,002 $ 4,663 $ 1,339 December 31, 201 7 Patent sublicense $ 1,218 $ 1,218 $ — Customer relationship intangible related to acquisition 2,510 2,510 — Other identified intangible assets related to acquisition 780 780 — Other intangible 155 155 — Goodwill 1,339 — 1,339 Total $ 6,002 $ 4,663 $ 1,339 The Company did not 2018. 2017 2016 $2,000 $141,000, no December 31, 2018. Accrued Liabilities Accrued liabilities consist of the following (in thousands): December 31, 201 8 201 7 Accrued payroll and related expenses $ 9,377 $ 12,567 Sales and marketing accruals 2,379 3,710 Accrued sales tax 2,935 2,920 Warranty liability 4,666 3,508 Other accrued liabilities 3,943 4,143 Total $ 23,300 $ 26,848 Product Remediation Liability During the fourth 2018, one one $5.0 $1.1 fourth $0.8 $5.0 $3.2 |
Note 4 - Warranty and Extended
Note 4 - Warranty and Extended Services Contracts | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Product Warranty Disclosure [Text Block] | NOTE 4 — W ARRANTY AND EXTENDED SERVICES CONTRACT The Company has a direct field service organization in North America (including Canada). Internationally, the Company provides direct service support in Australia, Belgium, France, Germany, Hong Kong, Japan, and Switzerland, as well as through third not third After the original warranty period, maintenance and support are offered on an extended service contract basis or on a time and materials basis. The Company provides for the estimated cost to repair or replace products under standard warranty at the time of sale. Costs incurred in connection with extended service contracts are recognized at the time when costs are incurred, except the one $3.2 one December 31, 2018 2017 December 31, 201 8 201 7 Balance at beginning of year $ 3,508 $ 2,461 Add: Accruals for warranties issued during the period 9,205 7,583 Less: Warranty related expenses during the period (8,045 ) (6,536 ) Balance at end of year $ 4,668 $ 3,508 |
Note 5 - Deferred Revenue
Note 5 - Deferred Revenue | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | NOTE 5 — DEFERRED REVENUE The Company records deferred revenue when revenue is to be recognized subsequent to invoicing. For extended service contracts, the Company generally invoices customers at the beginning of the extended service contract term. The Company’s extended service contracts typically have one, two three 79% $12.6 December 31, 2018 12 The following table provides changes in the deferred contract revenue balance for the years ended December 31, 2018 2017 December 31, 201 8 201 7 Balance at beginning of year $ 10,719 $ 9,431 Add: Payments received 14,882 14,369 Less: Revenue recognized (13,746 ) (13,081 ) Balance at end of year $ 11,855 $ 10,719 Costs for extended service contracts in 2018, 2017 2016 $7.8 $6.0 $6.7 $7.8 2018 one $3.2 one 3 |
Note 6 - Stockholders' Equity,
Note 6 - Stockholders' Equity, Stock Plans and Stock-based Compensation Expense | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE 6 —STOCKHOLDERS’ EQUITY, STOCK PLANS AND STOCK-BASED COMPENSATION EXPENSE As of December 31, 2018, 2004 1998 In 1998, 1998 1998 4,650,000 On January 12, 2004, 2004 1,750,000 2004 2004 1998 1998 2012 2004 2.12 Options granted under the 1998 2004 may may 2004 may four 25% first 1/48th 2013 2012 three one third one 1/36th 2014 not 2013 2012 seven In accordance with the 2004 2012, $60,000 50 October 31, 2017, $60,000 one December 31, 2018, 2017 2016, 13,392, 21,605 45,350 2016 6,500 one four In the years ended December 31, 2018, 2017 2016 120,273, 270,707 229,865 one fourth one one fourth three one third one one third two December 15, 2017, 100,000 15%, 15%, 25% 45% third fourth In the years ended December 31, 2018, 2017 2016 49,498, 117,418 204,976 2018, 2017 2016 50% not 2018. 2004 On January 12, 2004, 2004 2004 2004 2004 six 2004 first i. 600,000 ii. 2.0% iii. an amount as determined by the Board of Directors. The Company’s Board of Directors did not January 1, 2019, 2018 2017. 85% six December 31, 2018, 2017and 2016, 2004 64,511, 78,479 79,922 December 31, 2018, 627,073 Option Activity Activity under the 1998 2004 Options Outstanding Shares Available For Grant Number of Shares Weighted- Average Exercise Price Weighted-Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in $ millions (1) Balances as of December 31, 2015 1,263,425 2,148,797 $ 9.31 3.4 $ 7.9 Options granted (162,000 ) 162,000 $ 11.55 Options exercised — (1,051,138 ) $ 8.89 Options cancelled (expired or forfeited) 143,187 (143,187 ) $ 12.93 Stock awards granted (1,018,005 ) — — Stock awards cancelled (expired or forfeited) 495,050 — — Balances as of December 31, 2016 721,657 1,116,472 $ 9.56 3.7 $ 8.7 Options granted (278,250 ) 278,250 $ 31.00 Options exercised — (488,398 ) $ 8.96 Options cancelled (expired or forfeited) 66,405 (66,405 ) $ 16.54 Stock awards granted (873,881 ) — — Stock awards cancelled (expired or forfeited) 258,935 — — Additional shares reserved (2) 1,600,000 — — Balances as of December 31, 2017 1,494,866 839,919 $ 16.46 3.99 $ 24.4 Options granted (21,010 ) 21,010 $ 50.65 Options exercised — (271,902 ) $ 9.99 Options cancelled (expired or forfeited) 81,322 (81,322 ) $ 21,55 Stock awards granted (562,070 ) Stock awards cancelled (expired or forfeited) 148,197 Balances as of December 31, 2018 1,141,305 507,705 $ 20.52 3.52 $ 2.00 Exercisable as of December 31, 2018 335,348 $ 14.68 2.73 $ 1.87 Vested and expected to vest, net of estimated forfeitures, as of December 31, 2018 485,469 $ 19.88 3.42 $ 19.86 ( 1 Based on the closing stock price of $17.02 December 31, 201 8 , $ 45.35 on December 30, 201 7 , $ 17.35 on December 31 201 6 and $ 12.79 on December 31, 201 5 . ( 2 Approved by the board of directors and stockholders in 2017. . The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the aggregate difference between the Company’s closing stock price on the last trading day of the fiscal year and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 31, 2018. 2018, 2017 2016 $8.3 $8.0 $3.6 December 31, 2018 Exercise Prices Number Outstanding Contractual Life Number Outstanding $6.88 – $7.44 28,832 0.58 28,832 $8.80 97,268 1.44 97,268 $9.65 – $10.79 54,564 3.01 49,544 $10.80 – $11.24 57,521 3.18 47,293 $11.67 – $17.90 72,583 2.44 48,855 $18.55 – $25.70 71,250 5.21 28,512 $39.30 72,000 5.83 23,230 $43.40 6,510 6.45 — $47.40 38,927 5.86 10,564 $53.90 8,250 5.30 1,250 Stock Awards (RSU and PSU) Activity Table Information with respect to RSUs and PSUs activity is as follows (in thousands): Number of Weighted-Average Grant- Date Fair Aggregate Fair Value (1) Aggregate Intrinsic Value (2) Shares Value (in thousands) (in thousands) Outstanding at December 31, 2015 371,630 $ 12.39 $ 4,753 Granted 480,191 $ 10.80 Vested (3) (172,990 ) $ 12.56 $ 1,906 (5) Forfeited (233,514 ) $ 11.36 Outstanding at December 31, 2016 445,317 $ 11.15 $ 7,726 Granted 412,208 $ 28.74 Vested (3) (224,799 ) $ 10.91 $ 5,168 (6) Forfeited (122,139 ) $ 13.56 Outstanding at December 31, 2017 510,587 $ 24.88 $ 23,155 Granted 265,124 $ 44.57 Vested (3) (231,515 ) $ 21.10 $ 9,483 (6) Forfeited (69,905 ) $ 20.01 Outstanding at December 31, 2018 474,291 $ 38.44 $ 8,072 ( 1 Represents the value of the Company’s stock on the date that the restricted stock units and performance stock units vest. ( 2 Based on the closing stock price of the C o m pan y ’ s stock of $ 17.02 on December 31, 2018 , $ 45.35 on December 31, 2017 , $ 17.35 December 31 , 2016 and $12.79 on December 30 , 2015 . ( 3 The number of restricted stock units vested includes shares tha t the Company withheld on behalf of the employees to satisfy the statutory tax withholding requirements. ( 4 On the grant date, the fair value for these vested awards was $ 2.2 million. ( 5 On the grant date, the fair value for these vested awards was $2.5 million. ( 6 On the grant date, the fair value for these vested awards was $4.9 million. Stock-Based Compensation Stock-based compensation expense for the years ended December 31, 2018, 2017 2016 Year Ended December 31, 201 8 201 7 201 6 Stock options $ 838 $ 815 $ 989 RSUs 4,648 1,813 1,508 PSUs 1,105 2,093 967 ESPP 566 389 249 Total stock-based compensation expense $ 7,157 $ 5,110 $ 3,713 As of December 31, 2018, $12.8 2.63 $272,000, 0.33 The Company issues new shares of common stock upon the exercise of stock options, vesting of RSUs and PSUs, and the issuance of ESPP shares. The amount of cash received from these issuances (excluding PSUs), net of taxes withheld and paid, in 2018, 2017and 2016 $1.3 $4.0 $9.5 Total stock-based compensation expense recognized during the year ended December 31, 2018, 2017 2016 Year Ended December 31, 201 8 201 7 201 6 Cost of revenue $ 743 $ 660 $ 341 Sales and marketing 2,105 1,642 1,179 Research and development 824 936 596 General and administrative 3,485 1,872 1,597 Total stock-based compensation expense $ 7,157 $ 5,110 $ 3,713 Valuation Assumptions and Fair Value of Stock Options and ESPP Grants The Company uses the Black-Scholes option pricing model to estimate the fair value of options granted under its equity incentive plans and rights to acquire stock granted under its employee stock purchase plan. The Company based the weighted average estimated values of employee stock option grants and rights granted under the employee stock purchase plan, as well as the weighted average assumptions used in calculating these values, on estimates at the date of grant, as follows: Stock Options Stock Purchase Plan 201 8 201 7 201 6 201 8 201 7 201 6 Expected term (in years) (1) 3.7 3.70 3.83 0.50 0.50 0.50 Risk-free interest rate (2) 2.6 % 1.73 % 1.09 % 2.34 % 1.14 % 0.46 % Volatility (3) 44 % 40 % 40 % 61 % 42 % 39 % Dividend yield (4) — % — % — % — % — % — % Weighted average estimated fair value at grant date $ 18.0 $ 9.98 $ 3.72 $ 9.6 $ 8.21 $ 3.22 ( 1 The expected term represents the period during which the Company’s stock-based awards are expected to be outstanding. The estimated term is based on historical experience of similar awards, giving consideration to the contractual terms of the awards, vesting requirements, and expectation of future employee behavior, including post-vesting terminations. ( 2 The risk-free interest rate is based on U.S. Treasury debt securities with maturities close to the expected term of the option as of the date of grant. ( 3 Estimated volatility is based on historical volatility. The Company also considers implied volatility when there is sufficient volume of freely traded options with comparable terms and exercise prices in the open market. The Company periodically estimates forfeiture rates based on its historical experience within separate groups of employees and adjusts the stock-based payment expense accordingly. The forfeiture rates used in 2018 0% 17%. Non-Em ployee Stock-Based Compensation Stock-based compensation expense related to stock options granted to non-employees is recognized based on the fair value of the stock options, determined using the Black-Scholes option pricing model, as they are earned. The awards generally vest over the time period the Company expects to receive services from the nonemployee. The Company revalues stock options granted to non-employees at each reporting date as the underlying equity instruments vest. The Company granted 3,384 one December 31, 2018, 7,745 2,478 2017, zero 2016. 7,745 2017 4 25% first 1/48th The 3,384 2018 4 25% Stock Awards Withholdings For Stock Awards granted to employees, the number of shares issued on the date the Stock Awards vest is net of the tax withholding requirements paid on behalf of the employees. In 2018, 2017 2016, 77,049, 64,490, 56,157shares $3,130,360, $1, 1,471,000 $619,000, not |
Note 7 - Income Taxes
Note 7 - Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | NOTE 7 —INCOME TAXES The Company files income tax returns in the U.S. federal and various state and local jurisdictions and foreign jurisdictions. The Company’s income (loss) before provision for income taxes consisted of the following (in thousands): Year Ended December 31, 201 8 201 7 201 6 U.S. $ (14,177 ) $ 11,203 $ 2,207 Foreign 662 757 513 Income (loss) before income taxes $ (13,515 ) $ 11,960 $ 2,720 The components of the provision (benefit) for income taxes are as follows (in thousands): Year Ended December 31, 201 8 201 7 201 6 Current: Federal $ (15) $ 148 $ — State 123 71 16 Foreign 303 511 131 Total Current 411 730 147 Deferred: Federal 15,674 (17,393) (24) State 1,230 (1,348) (2) Foreign (60) (22) 22 Total Deferred 16,844 (18,763) (4) Tax provision $ 17,255 $ (18,033) $ 143 The Company’s deferred tax asset consists of the following (in thousands): December 31, 201 8 201 7 Net operating loss carryforwards $ 11,227 $ 8,604 Stock-based compensation 1,040 1,179 Other accruals and reserves 1,924 1,663 Credits 10,857 11,781 Foreign 457 399 Accrued warranty 1,863 847 Depreciation and amortization 2,024 1,592 Other 282 303 Deferred tax asset before valuation allowance 29,674 26,368 Valuation allowance (27,865) (7,242) Deferred tax asset after valuation allowance 1,809 19,126 Deferred tax liability (1,269) — Deferred tax liability on goodwill (83) (71) Net deferred tax asset $ 457 $ 19,055 The differences between the U.S. federal statutory income tax rates to the Company’s effective tax rate are as follows: Year Ended December 31, 201 8 2017* 2016* U.S. federal statutory income tax rate 21.00 % 34.00 % 34.00 % State tax rate (4.95) (5.59) (14.56) Meals and entertainment (2.66) 2.15 7.56 Stock-based compensation 13.66 (21.55) 14.36 SAB 118 Change in Estimate (2.43) — Foreign rate differential 0.11 (0.50) (0.16) Other (1.21) 0.65 (2.15) General business credit 4.31 (2.72) (9.25) Change in Federal Tax Rate — 60.98 — Valuation allowance (155.49) (218.17) (24.57) Effective tax rate (127.66) % (150.75) % 5.23 % * Other balance in 2017 and 2016 was reclassified for consistency with current year. The Company assesses the ability to realize its net deferred tax assets by evaluating all available evidence, both positive and negative, including ( 1 2 3 4 The Company’s deferred tax assets are primarily comprised of U.S. Net Operating Loss (“NOL”), tax credit and other deferred tax assets relating to book-to-tax temporary differences. The Company had recorded and maintained a full valuation allowance against those net deferred tax assets to reduce them to their estimated net realizable value through September 30, 2017. December 31, 2017, not $26.3 As of each reporting date, the Company’s management considers new evidence, both positive and negative, that could impact management’s view with regard to future realization of deferred tax assets. As of December 31, 2018, three December 31, 2018, not not $16.9 At December 31, 2018, $45.7 $20.5 not 2029 2038. $11.8 December 31, 2017 no December 31, 2018, $6.7 $7.4 $0.3 2024, no 2021. The utilization of NOL carryforwards and tax credits may 382 may 382 December 31, 2018 no not 382 Undistributed earnings of the Company’s foreign subsidiaries at December 31, 2018 no 2017 not not In December 2017, No. 118, 118” not one 2017 fourth 2017, December 31, 2017. 2017 fourth 2018. 2017 December 31, 2018. $0.3 $7.3 $0.3 118. In January 2018, 2017 Uncertain Tax Positions The Company establishes reserves for uncertain tax positions based on the largest amount that is more-likely-than- not not 50% two first not second 50% Although the Company believes it has adequately reserved for its uncertain tax positions, no not The Company files U.S., state, and foreign income tax returns in jurisdictions with varying statutes of limitations. The 2005 2018 2011 2017 The following table summarizes the activity related to the Company’s gross unrecognized tax benefits in December 31, 2016 December 31, 2018 ( Year Ended December 31, 201 8 201 7 201 6 Balance at beginning of year $ 1,519 $ 707 $ 651 Decreases related to prior year tax positions (70) 643 — Increases related to current year tax positions 114 169 56 Balance at end of year $ 1,563 $ 1,519 $ 707 It is the Company’s policy to recognize interest and penalties related to income tax matters in income tax expense. As of December 31, 2018, $107,000 |
Note 8 - Net Loss Per Share
Note 8 - Net Loss Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE 8 —NET LOSS PER SHARE Basic net income (loss) per share is computed using the weighted-average number of shares outstanding during the period. In periods of net income, diluted shares outstanding include the dilutive effect of in-the-money equity awards (stock options, restricted stock units, performance stock units and employee stock purchase plan contributions), which is calculated based on the average share price for each fiscal period using the treasury stock method. In accordance with ASC 260, Diluted earnings per share is the same as basic earnings per share for the periods in which the Company had a net loss because the inclusion of outstanding common stock equivalents would be anti-dilutive. The following table sets forth the computation of basic and diluted net income (loss) and the weighted average number of shares used in computing basic and diluted net income (loss) per share (in thousands, except per share data): Year Ended December 31, 201 8 201 7 201 6 Numerator: Net Income(loss) $ (30,770) $ 29,993 $ 2,577 Denominator: Weighted average shares of common stock outstanding used in computing net income (loss) per share, basic 13,771 13,873 13,225 Dilutive effect of incremental shares and share equivalents — 855 528 Weighted average shares of common stock outstanding used in computing net income (loss) per share, diluted 13,771 14,728 13,753 Net income(loss) per share: Net income (loss) per share, basic $ (2.23) $ 2.16 $ 0.19 Net income (loss) per share, diluted $ (2.23) $ 2.04 $ 0.19 The following numbers of shares outstanding, prior to the application of the treasury stock method, were excluded from the computation of diluted net income (loss) per common share for the period presented because including them would have had an anti-dilutive effect (in thousands): Year Ended December 31, 201 8 201 7 201 6 Options to purchase common stock 664 42 220 Restricted stock units 432 9 24 Employee stock purchase plan shares 133 — — Performance stock units 43 — — Total 1,272 51 244 |
Note 9 - Defined Contribution P
Note 9 - Defined Contribution Plan | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | NOTE 9 —DEFINED CONTRIBUTION PLAN In the U.S., the Company has an employee savings plan ( “401 401 may 401 100% 2018, 2017 2016, 401 $0.4 $0.3 $0.2 For the Company’s Japanese subsidiary, a discretionary employee retirement plan has been established. In addition, for some of the Company’s other foreign subsidiaries, the Company deposits funds with insurance companies, third December 31, 2018, three not |
Note 10 - Segment Information a
Note 10 - Segment Information and Revenue by Geography and Products | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | NOTE 10 —SEGMENT INFORMATION AND REVENUE BY GEOGRAPH Y AND PRODUCTS Segment reporting is based on the “management approach,” following the method that management organizes the Company’s reportable segments for which separate financial information is made available to, and evaluated regularly by, the chief operating decision maker in allocating resources and in assessing performance. The Company’s chief operating decision maker is its Chief Executive Officer ("CEO"), who makes decision on allocating resources and in assessing performance. The CEO reviews the Company's consolidated results as one one one The following table presents a summary of revenue by geography for the year ended December 31, 2018 2017 Year Ended December 31, 201 8 201 7 201 6 Revenue mix by geography: United States $ 101,862 $ 94,581 $ 65,513 Japan 17,819 17,264 14,727 Asia, excluding Japan 15,467 13,719 13,445 Europe 8,875 8,317 7,539 Rest of the world 18,696 17,612 16,832 Total Consolidated revenue $ 162,720 $ 151,493 $ 118,056 Revenue mix by product category: Systems $ 132,594 $ 125,883 $ 92,721 Consumables 4,162 2,435 2,498 Skincare 5,778 4,342 3,809 Total product revenue 142,535 132,660 99,028 Service 20,185 18,833 19,028 Total Consolidated revenue $ 162,720 $ 151,493 $ 118,056 |
Note 11 - Commitments and Conti
Note 11 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 11 —COMMITMENTS AND CONTINGENCIES OPERATING LEASES Facility Leases As of December 31, 2018, Year Ending December 31, Amount 2019 $ 3,011 2020 2,939 2021 2,564 2022 2,495 2023 and thereafter 214 Future minimum rental payments $ 11,223 Gross rent expense recognized in the years ended December 31, 2018, 2017 2016 $2.9 $1.5 $1.6 Vehicle Leases As of December 31, 2018, Year Ending December 31, Amount 2019 $ 576 2020 287 2021 152 Future minimum lease payments $ 1,015 Purchase Commitments The Company maintains certain open inventory purchase commitments with its suppliers to ensure a smooth and continuous supply for key components. The Company’s liability in these purchase commitments is generally restricted to a forecasted time-horizon as agreed between the parties. These forecasted time-horizons can vary among different suppliers. Although open purchase orders are considered enforceable and legally binding, the terms generally allow the Company the option to cancel, reschedule, and adjust their requirements based on the Company's business needs prior to the delivery of goods or performance of services The Company’s open inventory purchase commitments with its suppliers as of December 31, 2018 $1.7 $7.2 2019 2020. Indemnifications In the normal course of business, the Company enters into agreements that contain a variety of representations, warranties, and indemnification obligations. For example, the Company has entered into indemnification agreements with each of its directors and executive officers and certain key employees. The Company’s exposure under its various indemnification obligations is unknown and not may not Contingencies The Company is named from time to time as a party to other legal proceedings, product liability, commercial disputes, employee disputes, and contractual lawsuits in the ordinary course of business. These matters are subject to many uncertainties and outcomes that are not may not no not As of December 31, 2018 December 31, 2017, $171,000 $91,000, not |
Note 12 - Debt
Note 12 - Debt | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | NOTE 1 2 — DEBT Loan and Security Agreement On May 30, 2018, $25 May 30, 2021. December 31, 2018, no Covenants The Original Revolving Line of Credit contained financial and other covenants as well as the maintenance of a leverage ratio not 2.5 1.0 not $10 During the third 2018, third November 2, 2018, The First Amended Revolving Line of Credit provided for an original principal amount of $15 $10 Similar to the Original Revolving Line of Credit, the First Amended Revolving Line of Credit contained revised financial and other covenants as well as the maintenance of a leverage ratio not 2.0 1.0 not $1 2018 third $2.5 2018 fourth $4 2019 first second $6.5 2019 third $10 Subsequent to December 2018, March 11, 2019 $15 no may not $10 not 2.5 1.0. As of the date of this filing, there were no |
Note 13 - Related Parties
Note 13 - Related Parties | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | NOTE 13 —RELATED PARTIES In 2018 2017, $63,000 $196,000, December 31, 2016, 6,500 $87,100, three 33.33% three October 28, 2016, December 31, 2018 $200 40 The Company signed an agreement with a real estate firm, T3 September 2017, T3 2018 2017, $192,000 $38,000 T3 |
Note 14 - Correction of Prior P
Note 14 - Correction of Prior Period Immaterial Error | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Accounting Changes and Error Corrections [Text Block] | NOTE 14—CORRECTION During the three June 30, 2018, not 606 March 31, 2018. 606, $5.0 January 1, 2018. 606 $1.2 The Company evaluated the impact of the error on prior periods and determined that the effect was not three March 31, 2018 six June 30, 2018. six June 30, 2018. $1.2 $1.2 1 January 1, 2018. The Company’s condensed consolidated statements of operations, comprehensive income (loss) and cash flows for the three March 31, 2018, six nine September 30, 2018, December 31, 2018 not three March 31, 2018, six nine September 30, 2018, December 31, 2018 |
Note 15 - Subsequent Events
Note 15 - Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | NOTE 1 5 —SUBSEQUENT EVENT S The Company evaluates events or transactions that occur after the balance sheet date through to the date which the financial statements are issued, for potential recognition or disclosure in its consolidated financial statements in accordance with Subsequent Events. Effective January 4, 2019, In connection with Mr. Reinstein's resignation, the Company entered into a Separation Agreement and release with him. Pursuant to the Separation Agreement, Mr. Reinstein will serve as a consultant to the Company for six 10.2 8 January 9, 2019, $0.6 twelve 12 100% 2018 thirty 30 4,667 April 4, 2019. |
Supplementary Financial Data (U
Supplementary Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Quarterly Financial Information [Text Block] | SUPPLEMENTARY FINANCIAL DATA (UNAUDITED) (In thousands, except per share amounts) Quarter ended: Dec. 31, 201 8 Sept. 30, 201 8 June 30, 201 8 March 31, 201 8 Dec. 31, 201 7 Sept. 30, 201 7 June 30, 201 7 March 31, 201 7 Net revenue $ 45,469 $ 40,573 $ 42,553 $ 34,125 $ 47,632 $ 38,173 $ 36,389 $ 29,299 Cost of revenue 26,683 18,688 20,176 16,791 20,299 15,963 15,343 13,778 Gross profit 18,786 21,885 22,377 17,334 27,333 22,210 21,046 15,521 Operating expenses: Sales and marketing 15,318 14,479 15,535 13,088 15,362 13,148 12,787 10,773 Research and development 3,464 3,244 4,095 3,556 3,481 3,467 2,981 2,945 General and administrative 5,494 5,160 4,902 5,439 3,947 3,379 3,548 3,216 Lease termination income — — — — — (4,000 ) — — Total operating expenses 24,276 22,883 24,532 22,083 22,790 15,994 19,316 16,934 Income (loss) from operations (5,490 ) (998 ) (2,155 ) (4,749 ) 4,543 6,216 1,730 (1,413 ) Interest and other income, net (44 ) (49 ) (129 ) 98 138 197 276 273 Income (loss) before income taxes (5,534 ) (1,047 ) (2,284 ) (4,651 ) 4,681 6,413 2,006 (1,140 ) Income tax provision 20,760 (174 ) (712 ) (2,619 ) (18,199 ) 225 59 (118 ) Net income (loss) $ (26,293 ) $ (873 ) $ (1,572 ) $ (2,032 ) $ 22,880 $ 6,188 $ 1,947 $ (1,022 ) Net income (loss) per share—basic $ (1.89 ) $ (0.06 ) $ (0.11 ) $ (0.15 ) $ 1.66 $ 0.44 $ 0.14 $ (0.07 ) Net income (loss) per share—diluted $ (1.89 ) $ (0.06 ) $ (0.11 ) $ (0.15 ) $ 1.57 $ 0.42 $ 0.13 $ (0.07 ) Weighted average number of shares used in per share calculations: Basic 13,932 13,851 13,709 13,587 13,744 13,973 13,935 13,840 Diluted 13,932 13,851 13,709 13,587 14,569 14,767 14,629 13,840 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
SEC Schedule, 12-09, Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | CUTERA, INC. VALUATION AND QUALIFYING ACCOUNTS (in thousands) For the Year s Ended December 31, 201 8 , 20 1 7 and 20 1 6 Balance at Beginning of Year Additions Deductions Balance at End of Year Deferred tax assets valuation allowance Year ended December 31, 2018 $ 7,242 $ 22,770 $ 2,147 $ 27,865 Year ended December 31, 2017 $ 31,751 $ 617 $ 25,126 $ 7,242 Year ended December 31, 2016 $ 27,616 $ 6,755 $ 2,620 $ 31,751 Balance at Beginning of Year Additions Deductions Balance at End of Year Allowance for doubtful accounts receivable Year ended December 31, 2018 $ 9 $ 1,880 $ 632 $ 1,257 Year ended December 31, 2017 $ 21 $ 14 $ 26 $ 9 Year ended December 31, 2016 $ 4 $ 21 $ 4 $ 21 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Consolidation, Subsidiaries or Other Investments, Consolidated Entities, Policy [Policy Text Block] | Description of Operations and Principles of Consolidation Cutera, Inc. (“Cutera” or the “Company”) is a global provider of laser and energy-based aesthetic systems for practitioners worldwide. The Company designs, develops, manufactures, distributes and markets light and energy-based product platforms for use by physicians and other qualified practitioners, enabling them to offer safe and effective aesthetic treatments to their customers. The Company currently markets the following system platforms: excel, enlighten, Juliet, Secret RF, truSculpt xeo Titan, truSculpt 3D truSculpt iD Juliet Secret RF third Titan , truSculpt 3D truSculpt iD Headquartered in Brisbane, California, the Company has wholly-owned subsidiaries that are currently operational in Australia, Belgium, Canada, France, Germany, Hong Kong, Japan, Spain, Switzerland and the United Kingdom. The Company’s wholly owned subsidiary in Italy is currently dormant. These active subsidiaries market, sell and service the Company’s products outside of the United States. The Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All inter-company transactions and balances have been eliminated. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of Consolidated Financial Statements in conformity with Generally Accepted Accounting Principles (“GAAP”) requires the Company’s management to make estimates and assumptions that affect the amounts reported of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial Statements and the accompanying notes, and the reported amounts of revenue and expenses during the reported periods. Actual results could differ materially from those estimates. On an ongoing basis, management evaluates its estimates, including those related to warranty obligations, sales commission, accounts receivable and sales allowances, valuation of inventories, fair values of goodwill, useful lives of property and equipment, assumptions regarding variables used in calculating the fair value of the Company's equity awards, expected achievement of performance based vesting criteria, fair value of investments, the standalone selling price of the Company's products and services, the customer life and period of benefit used to capitalize and amortize contracts acquisition costs, variable consideration, contingent liabilities, recoverability of deferred tax assets, and effective income tax rates, among others. Management bases estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. |
Risks and Uncertainties, Policy [Policy Text Block] | R isks and Uncertainties The Company's future results of operations involve a number of risks and uncertainties. Factors that could affect the Company's future operating results and cause actual results to vary materially from expectations include, but are not |
Comparability of Prior Year Financial Data, Policy [Policy Text Block] | Comparability The Company adopted the new revenue standard effective January 1, 2018, not December 31, 2018 December 31, 2018 December 31, 2017. December 31, 2018 December 31, 2017 not December 31, 2018 December 31, 2017. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements Not In February 2016, 2016 02, 842 July 2018, 2018 11, 2016 02 2018 2018 11 not July 2018, 2018 10, 842, 2016 02. 2016 02 January 1, 2019 The Company will adopt ASC Topic 842 January 1, 2019, not not The Company expects that this standard will have a material effect on our financial statements. While the Company continues to assess all of the effects of adoption, the Company currently believes the most significant effects relate to the recognition of new right-of-use (“ROU”) assets and lease liabilities on our balance sheet for our auto, office, and embedded leases; and the requirement to provide significant new disclosures about our leasing activities. Upon the adoption of ASC Topic 842, $10.0 $11.0 The new standard also provides practical expedients for an entity’s ongoing accounting. The Company will elect the short-term lease recognition exemption for all leases that qualify. This means, for those leases that qualify, the Company will not not not not Recently Adopted Accounting Pronouncements In May 2014, 2014 09, 606, December 15, 2017, December 15, 2016. first 2018 not See “Revenue Recognition,” for additional accounting policy and transition disclosures. On January 26, 2017, No. 2017 04, 350 one not 2 two 350 20 35 3A The amendment is effective for the Company for its fiscal years beginning after December 15, 2019. January 1, 2017 ( 350 20 65 3 2017 04—Intangibles—Goodwill 350 October 1, 2018. no See ” Goodwill and Other Intangible Assets” in Note 3 In June 2018, No. 2018 07, 718 1 2 3 606. December 15, 2018, no 606. January 1, 2019 not |
Revenue from Contract with Customer [Policy Text Block] | Revenue The Company adopted ASC Topic 606, January 1, 2018, not January 1, 2018. January 1, 2018 606, not 606. Upon adoption of ASC Topic 606, $3.8 7 January 1, 2018 first 2018: ● $237,000 ● $151,000 one ● $210,000 ● $4.7 2.5 ● $1.2 606 The following table summarizes the effects of adopting ASC Topic 606 December 31, 2018: As reported under ASC Topic 606 Adjustments Balances under Prior GAAP (In thousands) Other long-term assets $ 5,971 $ 5,217 $ 754 Deferred revenue 12,566 (106) 12,460 Retained earnings (deficit) (24,010) 4,176 (19,834) The following table summarizes the effects of adopting ASC Topic 606 December 31, 2018: As reported under Topic 606 Adjustments Balances under Prior GAAP (In thousands) Products revenue $ 142,535 $ 274 $ 61 Service revenue 20,185 280 19,905 Sales and marketing 58,420 540 58,960 Interest and other income, net* (123) 297 174 * Included in interest and other income, net, is the estimated interest expense for advance payment related to service contracts under the new revenue standard. Adoption of the standard had no As part of the Company's adoption of ASC Topic 606, not one one not not Revenue recognition Revenue recognition- Period before January 1, 2018 - 606 The Company recognized revenue under ASC Topic 605 606 January 1 2018. 605, ● Persuasive evidence of an arrangement exists; ● The price is fixed or determinable; ● Delivery has occurred or services have been rendered; and ● Collectability is reasonably assured. Transfer of title and risk of ownership occurs when the product is shipped to the customer or when the customer receives the product, depending on the nature of the arrangement. Revenue is recorded net of customer and distributor discounts. When collectability is not not Multiple-element Arrangements A multiple-element arrangement includes the sale of one one For multiple-element arrangements, judgments are required as to the allocation of the proceeds received from an arrangement to the multiple elements of the arrangement. For multiple element arrangements the Company allocates revenue to all deliverables based on their relative selling prices in accordance with the FASB Accounting Standards Codification (“ASC”) 605 25. third not With respect to the sale of its earlier generation of the truSculpt truSculpt not truSculpt truSculpt Customer Marketing Arrangements The Company has a customer marketing and incentive program called “Cutera Bucks” for its North America customers through which it offers various sales incentives and discounts and pays or reimburses customers for qualifying expenses associated with practice set-up, advertising procedures related to the system purchased, and other expenses. The Company records such incentives as a reduction of revenue at the time when the sale of the system is recorded. Service Revenue The Company also offers customers extended service contracts. Revenue under service contracts is recognized on a straight-line basis over the period of the applicable service contract. Revenue from services performed in the absence of a service contract, including installation and training revenue, is recognized when the related services are performed and collectability is reasonably assured. Service revenue billed on a time and material basis, from customers whose systems are not December 31, 2017 2016 $18.8 $19.0 Bill and Hold Arrangement Under ASC 605 2017 one third no $938,000 2017. no 2016. Revenue recognition- Period after January 1, 2018 - 606 Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for promised goods or services. The Company’s performance obligations are satisfied either over time or at a point in time. Revenue from performance obligations that are transferred to customers over time accounted for approximately 12% twelve December 31, 2018. The Company has certain system sale arrangements that contain multiple products and services. For these bundled sale arrangements, the Company accounts for individual products and services as separate performance obligations if they are distinct. The Company’s products and services are distinct if a customer can benefit from the product or service on its own or with other resources that are readily available to the customer, and if the Company’s promise to transfer the products or service to the customer is separately identifiable from other promises in the contract. The Company’s system sale arrangements include a combination of the following performance obligations: the system and software license (considered as one For the Company’s system sale arrangements that include an extended service contract, the period of service commences at the expiration of the Company’s standard warranty offered at the time of the system sale. The Company considers the extended service contracts terms in the arrangements that are legally enforceable to be performance obligations. Other than extended service contracts and marketing services (which are satisfied over time), the Company generally satisfies all of the performance obligations at a point in time. Systems, system accessories (hand pieces), training, time and materials services are also sold on a stand-alone basis, and related performance obligations are satisfied at a point in time. For contracts with multiple performance obligations, the Company allocates the transaction price of the contract to each performance obligation on a relative standalone selling price basis. Nature of Products and Services Systems System revenue represents the sale of a system or an upgrade of an existing system. A system consists of a console that incorporates a universal graphic user interface, a laser or other energy based module, control system software and high voltage electronics, as well as one Pearl Pearl Fractional The Company offers customers the ability to select the system that best fits their practice at the time of purchase and then to cost-effectively add applications to their system as their practice grows. This provides customers the flexibility to upgrade their systems whenever they choose and provides the Company with a source of additional Systems revenue. The Company concludes that the system or upgrade and the right to use the embedded software represent a single performance obligation as the software license is integral to the functionality of the system or upgrade. The Company does not enlighten enlighten enlighten For systems sold directly to end-customers that are credit approved, revenue is recognized when the Company transfers control to the end-customer, which occurs when the product is shipped to the customer or when the customer receives the product, depending on the nature of the arrangement. The Company recognizes revenue on a cash basis for system sales to international direct end-customer sales that have not The Company typically receives payment for its system consoles and other accessories within 30 Skincare products The Company sells third third third Consumables (Other accessories) The Company treats its customers' purchases of replacement Titan truSculpt 3D truSculpt iD Juliet Secret RF truSculpt Extended contract services The Company offers post-warranty services to its customers through extended service contracts that cover parts and labor for a term of one, two, or three Training Sales of system to customers include training on the system to be provided within 180 not Customer Marketing Support In North America, the Company offers marketing and consulting phone support to its customers who purchase truSculpt 3D truSculpt iD six six Significant Judgments The Company combines two The Company is required to estimate the total consideration expected to be received from contracts with customers. In limited circumstances, the consideration expected to be received is variable based on the specific terms of the contract The Company has not The Company determines standalone selling price ("SSP") for each performance obligation as follows: Systems: The SSPs for systems are based on directly observable sales in similar circumstances to similar customers. When SSP is not Training: SSP is based on observable price when sold on a standalone basis. Extended warranty/Service contracts: SSP is based on observable price when sold on a standalone basis (by customer type). Customer Marketing Support: SSP is estimated based on cost plus a margin. Set-up /Installation: Set-up or installation for all other systems (excluding the enlighten system) is immaterial in the context of the contract as the set-up or installation for systems other than enlighten. The related costs to complete set-up or installation are immaterial. The calibration and installation service of the enlighten system are treated as separate performance obligations because the Company regularly sells enlighten systems without the calibration and installation service. Loyalty Program The Company launched a customer loyalty program during the third 2018 fifth 5 th The fair value of the reward earned by loyalty program members is included in accrued liabilities and recorded as a reduction of net sales at the time the reward is earned. |
Cash and Cash Equivalents Marketable Investments and Long-term Investments [Policy Text Block] | Cash Equivalents, and Marketable Investments The Company invests its cash primarily in money market funds and in highly liquid debt instruments of U.S. federal and municipal governments and their agencies, commercial paper and corporate debt securities. All highly liquid investments with stated maturities of three three The Company determines the appropriate classification of its investments in marketable securities at the time of purchase and re-evaluates such designation at each balance sheet date. The Company’s marketable securities have been classified and accounted for as available-for-sale securities. Investments with remaining maturities of more than one |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value. The Company’s financial instruments include cash equivalents, accounts receivable, accounts payable and accrued liabilities. Carrying amounts of the Company's financial instruments, approximate their fair values as of the balance sheet dates given their generally short maturities. The fair value hierarchy distinguishes between ( 1 2 three 1 3 three 820: ● Level 1: ● Level 2: not 2 not ● Level 3: no In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company also considers counterparty credit risk in its assessment of fair value. |
Marketable Securities, Policy [Policy Text Block] | Impairment of Marketable Investments After determining the fair value of available-for-sales debt instruments, gains or losses on these securities are recorded to other comprehensive income, until either the security is sold or the Company determines that the decline in value is other-than-temporary. The primary differentiating factors that the Company considers in classifying impairments as either temporary or other-than-temporary impairments are the Company’s intent and ability to retain the investment in the issuer for a period of time sufficient to allow for any anticipated recovery in market value or the maturity of the investment, the length of the time and the extent to which the market value of the investment has been less than cost and the financial condition and near-term prospects of the issuer. There were no December 31, 2018, 2017, 2016. |
Allowances for Sales Returns and Doubtful Accounts [Policy Text Block] | Allowance for Sales Returns and Doubtful Accounts The allowance for sales returns is based on the Company’s estimates of potential future product returns and other allowances related to current period product revenue. The Company analyzes historical returns, current economic trends and changes in customer demand and acceptance of the Company's products. In cases where the Company is aware of circumstances that may |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risk and Other Risks and Uncertainties The Company operates in markets that are highly competitive and rapidly changing. Significant technological changes, shifting customer needs, the emergence of competitive products or services with new capabilities and other factors could negatively impact our operating results. The Company is also subject to risks related to changes in the value of our significant balance of financial instruments. Financial instruments that potentially subject the Company to concentrations of risk consist principally of cash, cash equivalents, marketable investments and accounts receivable. The Company’s cash and cash equivalents are primarily invested in deposits and money market accounts with three may not The Company invests in debt instruments, including bonds of the U.S. Government, its agencies and municipalities. The Company has also invested in other high grade investments such as commercial paper and corporate debt securities. The Company has established guidelines relative to credit ratings, diversification and maturities that seek to maintain safety and liquidity. By policy, the Company restricts its exposure to any single issuer by imposing concentration limits. To minimize the exposure due to adverse shifts in interest rates, the Company maintains investments at an average maturity of generally less than twelve Accounts receivable are recorded net of an allowance for doubtful accounts, and are typically unsecured and are derived from revenue earned from worldwide customers. The Company controls credit risk through credit approvals, credit limits, and monitoring procedures. The Company performs credit evaluations of its customers and maintains reserves for potential credit losses. As of December 31, 2018 2017, one 4.9% December 31, 2018, 2017, 2016, 62%, 65%, 55%, 37%, 38%, 45%, No 10% December 31, 2018, 2017, 2016. Supplier concentration The Company relies on third third may |
Inventory, Policy [Policy Text Block] | Inventories Inventories are stated at the lower of cost and net realizable value, cost being determined on a standard cost basis which approximates actual cost on a first first The Company includes demonstration units within inventories. Demonstration units are carried at cost and amortized over an estimated economic life of two As of December 31, 2018 2017, $2.9 $1.9 |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation. Depreciation expense recognized is on a straight-line basis over the estimated useful lives of the assets, generally as follows: Useful Lives Leasehold improvements Lesser of useful life or term of lease Office equipment and furniture (in years) 3 Machinery and equipment (in years) 3 Upon sale or retirement of property and equipment, the costs and related accumulated depreciation and amortization are removed from the balance sheet and the resulting gain or loss is reflected in operating expenses. Maintenance and repairs are charged to operations as incurred. Depreciation expense related to property and equipment for 2018, 2017 2016, $1.2 $1.0 $0.8 |
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block] | Goodwill and Intangible Assets Goodwill and intangible assets with indefinite useful lives are not fourth may no The Company continues to operate in one December 31, 2018, no December 31, 2018. |
Standard Product Warranty, Policy [Policy Text Block] | Warranty Obligations The Company offers post-warranty services to its customers through extended service contracts that cover replacement parts and labor for a term of one, two, or three 14 16 The Company also offers services on a time-and-materials basis for detachable hand piece replacements, parts and labor. These post-warranty services serve as additional sources of recurring revenue from the Company’s installed product base. |
Deferred Charges, Policy [Policy Text Block] | Deferred Sales Commissions Incremental costs of obtaining a contract, including sales commissions, are capitalized and amortized on a straight-line basis over the expected customer relationship period. The Company uses the portfolio method to recognize the amortization expense related to these capitalized costs related to initial contracts and such expense is recognized over a period associated with the revenue of the related portfolio, which is generally two three Total capitalized costs for the year ended December 31, 2018 $5.2 $1.3 December 31, 2018 |
Cost of Sales, Policy [Policy Text Block] | Cost of Revenue Cost of revenue consists primarily of material, finished and semi-finished products purchased from third The Company's system sales include a control console, universal graphic user interface, control system software, high voltage electronics and a combination of applications (referred to as hand pieces). Hand pieces are programmed to have a limited number of uses to ensure the safety of the device to patients. The Company sells refurbished hand pieces, or "refills," of its Titan truSculpt 3D |
Research and Development Expense, Policy [Policy Text Block] | Research and Development Expenditures Research and development costs are expensed as incurred and include costs related to research, design, development, testing of products, salaries, benefits and other headcount related costs, facilities, material, third |
Advertising Costs, Policy [Policy Text Block] | Advertising Costs Advertising costs are included as part of sales and marketing expense and are expensed as incurred. Advertising expenses for 2018, 2017 2016 $2.8 $1.8 $1.3 |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-based Compensation The Company accounts for share-based employee compensation plans using the fair value recognition and measurement provisions under U.S. GAAP. The Company’s share-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as expense on a straight-line basis over the requisite service period. The Company estimates expected forfeitures at the time of grant and revises, if necessary, in subsequent periods if actual forfeitures differ from those estimated. Expected Term Expected Volatility: 50 50 Risk-Free Interest Rate: ● The fair value of stock options ("options") on the grant date is estimated using the Black-Scholes option-pricing model using the single-option approach. The Black-Scholes option pricing model requires the use of highly subjective and complex assumptions, including the option's expected term and the price volatility of the underlying stock, to determine the fair value of award. The Company recognizes the expense associated with options using a single award approach over the requisite service period. The Company accounts for all stock options awarded to non-employees at the fair value of the consideration received or the fair value of the equity instrument issued, as calculated using the Black-Scholes model. ● The fair value of restricted stock units is determined based on the closing quoted 50 ● The fair value of Performance Stock Units (“PSUs”) that have operational measurement goals, are measured at the 50 may not See Note 9 |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company is subject to taxes on earnings in both the U.S. and various foreign jurisdictions. As a global taxpayer, significant judgments and estimates are required in evaluating our uncertain tax positions and determining our provision for income taxes on earnings. The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not 50% The Company’s effective tax rates have differed from the statutory rate primarily due to changes in the valuation allowance, foreign operations, research and development tax credits, state taxes, and certain benefits realized related to stock option activity. The Company’s current effective tax rate does not Undistributed earnings of the Company’s foreign subsidiaries at December 31, 2018 no 2017 not not In December 2017, No. 118, 118” not one 2017 fourth 2017, December 31, 2017. 2017 fourth 2018. 2017 December 31, 2018. $0.4 $7.3 $0.4 118. In January 2018, 2017 |
Earnings Per Share, Policy [Policy Text Block] | Computation of Net Income ( Loss) per Share Basic net income per share is computed using the weighted average number of shares outstanding during the period. Diluted net income per share is computed using the weighted average number of the Company’s shares and dilutive potential shares outstanding during the period. Dilutive potential shares primarily consist of employee stock options, restricted stock units, and shares to be purchased by employees under the Company’s employee stock purchase plan. GAAP requires that employee equity share options, non-vested shares, and similar equity instruments granted by the Company be treated as potential common shares outstanding in computing diluted earnings per share. Diluted shares outstanding include the dilutive effect of equity awards, which is calculated based on the average share price for each fiscal period using the treasury stock method. Under the treasury stock method, the amount the employee must pay for exercising stock options and the amount of compensation cost for future service that the Company has not |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income (Loss) Comprehensive income (loss) includes all changes in stockholders’ equity except those resulting from investments or contributions by stockholders. For the periods presented, the accumulated other comprehensive income (loss) consisted solely of the unrealized gains or losses on the Company's available for- sale investments, net of tax. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency The U.S. Dollar is the functional currency of the Company’s subsidiaries. Monetary assets and liabilities are re-measured into U.S. Dollars at the applicable period end exchange rate. Sales and operating expenses are re-measured at average exchange rates in effect during each period. Gains or losses resulting from foreign currency transactions are included in net income (loss) and are insignificant for each of the three December 31, 2017. three December 31, 2018. |
Segment Reporting, Policy [Policy Text Block] | Segments The Company operates in one one not December 31, 2018, 2017, 89% 98% 13 |
Note 1 - Summary of Significa_2
Note 1 - Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | As reported under ASC Topic 606 Adjustments Balances under Prior GAAP (In thousands) Other long-term assets $ 5,971 $ (5,217) $ 754 Deferred revenue 12,566 (106) 12,460 Retained earnings (deficit) (24,010) 4,610 (19,400) As reported under Topic 606 Adjustments Balances under Prior GAAP (In thousands) Products revenue $ 142,535 $ 274 $ 142,261 Service revenue 20,185 280 19,905 Sales and marketing 58,420 540 58,960 Interest and other income, net* (123) 297 174 |
Property, Plant, and Equipment Useful Lives [Table Text Block] | Useful Lives Leasehold improvements Lesser of useful life or term of lease Office equipment and furniture (in years) 3 Machinery and equipment (in years) 3 |
Note 2 - Investment Securities
Note 2 - Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Investment [Table Text Block] | December 31, 201 8 20 1 7 Cash and cash equivalents: Cash $ 21,969 $ 14,058 Cash equivalents: Money market funds 4,083 126 Total cash and cash equivalents 26,052 14,184 Marketable securities: U.S. government notes 1,397 11,870 U.S. government agencies 2,677 — Municipal securities 200 200 Commercial paper 2,433 1,833 Corporate debt securities 2,816 7,825 Total marketable securities 9,523 21,728 Total cash, cash equivalents and marketable securities $ 35,575 $ 35,912 |
Unrealized Gain (Loss) on Investments [Table Text Block] | December 31, 201 8 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Cash and cash equivalents $ 26,052 $ — $ — $ 26,052 Marketable investments U.S. government notes 1,397 — — 1,397 U.S. government agencies 2,677 — — 2,677 Municipal securities 200 — — 200 Commercial paper 2,433 — — 2,433 Corporate debt securities 2,825 — (9 ) 2,816 Total marketable securities 9,532 (9 ) 9,523 Total cash, cash equivalents and marketable securities $ 35,584 $ $ (9 ) $ 35,575 December 31, 201 7 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Cash and cash equivalents $ 14,184 $ — $ — $ 14,184 Marketable investments U.S. government notes 11,885 — (15 ) 11,870 Municipal securities 201 — (1 ) 200 Commercial paper 1,836 — (3 ) 1,833 Corporate debt securities 7,838 2 (15 ) 7,825 Total marketable securities 21,760 2 (34 ) 21,728 Total cash, cash equivalents and marketable securities $ 35,944 $ 2 $ (34 ) $ 35,912 |
Investments Classified by Contractual Maturity Date [Table Text Block] | Amount Due in less than one year $ 9,121 Due in 1 to 3 years 402 Total marketable securities $ 9,523 |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | December 31, 201 8 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 4,083 $ — $ — $ 4,083 Short term marketable investments: Available-for-sale securities — 9,523 — 9,523 Total assets at fair value $ 4,083 $ 9,523 $ — $ 13,606 December 31, 201 7 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 126 $ — $ — $ 126 Commercial paper — — — — Short term marketable investments: Available-for-sale securities — 21,728 — 21,728 Total assets at fair value $ 126 $ 21,728 $ — $ 21,854 |
Note 3 - Balance Sheet Detail (
Note 3 - Balance Sheet Detail (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | December 31, 201 8 201 7 Raw materials $ 16,991 $ 19,160 Work in process 2,306 2,744 Finished goods 8,717 6,878 Total $ 28,014 $ 28,782 |
Property, Plant and Equipment [Table Text Block] | December 31, 201 8 201 7 Leasehold improvements $ 660 $ 640 Office equipment and furniture 2,835 2,370 Machinery and equipment 7,304 6,277 10,799 9,287 Less: Accumulated depreciation (8,127) (7,191) Property and equipment, net $ 2,672 $ 2,096 |
Schedule of Intangible Assets and Goodwill [Table Text Block] | Gross Carrying Amount Accumulated Amortization & Impairment Amount Net Amount December 31, 201 8 Patent sublicense $ 1,218 $ 1,218 $ — Customer relationship intangible related to acquisition 2,510 2,510 — Other identified intangible assets related to acquisition 780 780 — Other intangible 155 155 — Goodwill 1,339 — 1,339 Total $ 6,002 $ 4,663 $ 1,339 December 31, 201 7 Patent sublicense $ 1,218 $ 1,218 $ — Customer relationship intangible related to acquisition 2,510 2,510 — Other identified intangible assets related to acquisition 780 780 — Other intangible 155 155 — Goodwill 1,339 — 1,339 Total $ 6,002 $ 4,663 $ 1,339 |
Schedule of Accrued Liabilities [Table Text Block] | December 31, 201 8 201 7 Accrued payroll and related expenses $ 9,377 $ 12,567 Sales and marketing accruals 2,379 3,710 Accrued sales tax 2,935 2,920 Warranty liability 4,666 3,508 Other accrued liabilities 3,943 4,143 Total $ 23,300 $ 26,848 |
Note 4 - Warranty and Extende_2
Note 4 - Warranty and Extended Services Contracts (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | December 31, 201 8 201 7 Balance at beginning of year $ 3,508 $ 2,461 Add: Accruals for warranties issued during the period 9,205 7,583 Less: Warranty related expenses during the period (8,045 ) (6,536 ) Balance at end of year $ 4,668 $ 3,508 |
Note 5 - Deferred Revenue (Tabl
Note 5 - Deferred Revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Deferred Revenue, by Arrangement, Disclosure [Table Text Block] | December 31, 201 8 201 7 Balance at beginning of year $ 10,719 $ 9,431 Add: Payments received 14,882 14,369 Less: Revenue recognized (13,746 ) (13,081 ) Balance at end of year $ 11,855 $ 10,719 |
Note 6 - Stockholders' Equity_2
Note 6 - Stockholders' Equity, Stock Plans and Stock-based Compensation Expense (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Share-based Compensation, Stock Options, Activity [Table Text Block] | Options Outstanding Shares Available For Grant Number of Shares Weighted- Average Exercise Price Weighted-Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in $ millions (1) Balances as of December 31, 2015 1,263,425 2,148,797 $ 9.31 3.4 $ 7.9 Options granted (162,000 ) 162,000 $ 11.55 Options exercised — (1,051,138 ) $ 8.89 Options cancelled (expired or forfeited) 143,187 (143,187 ) $ 12.93 Stock awards granted (1,018,005 ) — — Stock awards cancelled (expired or forfeited) 495,050 — — Balances as of December 31, 2016 721,657 1,116,472 $ 9.56 3.7 $ 8.7 Options granted (278,250 ) 278,250 $ 31.00 Options exercised — (488,398 ) $ 8.96 Options cancelled (expired or forfeited) 66,405 (66,405 ) $ 16.54 Stock awards granted (873,881 ) — — Stock awards cancelled (expired or forfeited) 258,935 — — Additional shares reserved (2) 1,600,000 — — Balances as of December 31, 2017 1,494,866 839,919 $ 16.46 3.99 $ 24.4 Options granted (21,010 ) 21,010 $ 50.65 Options exercised — (271,902 ) $ 9.99 Options cancelled (expired or forfeited) 81,322 (81,322 ) $ 21,55 Stock awards granted (562,070 ) Stock awards cancelled (expired or forfeited) 148,197 Balances as of December 31, 2018 1,141,305 507,705 $ 20.52 3.52 $ 2.00 Exercisable as of December 31, 2018 335,348 $ 14.68 2.73 $ 1.87 Vested and expected to vest, net of estimated forfeitures, as of December 31, 2018 485,469 $ 19.88 3.42 $ 19.86 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | Exercise Prices Number Outstanding Contractual Life Number Outstanding $6.88 – $7.44 28,832 0.58 28,832 $8.80 97,268 1.44 97,268 $9.65 – $10.79 54,564 3.01 49,544 $10.80 – $11.24 57,521 3.18 47,293 $11.67 – $17.90 72,583 2.44 48,855 $18.55 – $25.70 71,250 5.21 28,512 $39.30 72,000 5.83 23,230 $43.40 6,510 6.45 — $47.40 38,927 5.86 10,564 $53.90 8,250 5.30 1,250 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | Number of Weighted-Average Grant- Date Fair Aggregate Fair Value (1) Aggregate Intrinsic Value (2) Shares Value (in thousands) (in thousands) Outstanding at December 31, 2015 371,630 $ 12.39 $ 4,753 Granted 480,191 $ 10.80 Vested (3) (172,990 ) $ 12.56 $ 1,906 (5) Forfeited (233,514 ) $ 11.36 Outstanding at December 31, 2016 445,317 $ 11.15 $ 7,726 Granted 412,208 $ 28.74 Vested (3) (224,799 ) $ 10.91 $ 5,168 (6) Forfeited (122,139 ) $ 13.56 Outstanding at December 31, 2017 510,587 $ 24.88 $ 23,155 Granted 265,124 $ 44.57 Vested (3) (231,515 ) $ 21.10 $ 9,483 (6) Forfeited (69,905 ) $ 20.01 Outstanding at December 31, 2018 474,291 $ 38.44 $ 8,072 |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block] | Year Ended December 31, 201 8 201 7 201 6 Stock options $ 838 $ 815 $ 989 RSUs 4,648 1,813 1,508 PSUs 1,105 2,093 967 ESPP 566 389 249 Total stock-based compensation expense $ 7,157 $ 5,110 $ 3,713 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Year Ended December 31, 201 8 201 7 201 6 Cost of revenue $ 743 $ 660 $ 341 Sales and marketing 2,105 1,642 1,179 Research and development 824 936 596 General and administrative 3,485 1,872 1,597 Total stock-based compensation expense $ 7,157 $ 5,110 $ 3,713 |
Valuation Assumptions and Fair Value of Stock Options and ESPP Grants [Table Text Block] | Stock Options Stock Purchase Plan 201 8 201 7 201 6 201 8 201 7 201 6 Expected term (in years) (1) 3.7 3.70 3.83 0.50 0.50 0.50 Risk-free interest rate (2) 2.6 % 1.73 % 1.09 % 2.34 % 1.14 % 0.46 % Volatility (3) 44 % 40 % 40 % 61 % 42 % 39 % Dividend yield (4) — % — % — % — % — % — % Weighted average estimated fair value at grant date $ 18.0 $ 9.98 $ 3.72 $ 9.6 $ 8.21 $ 3.22 |
Note 7 - Income Taxes (Tables)
Note 7 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | Year Ended December 31, 201 8 201 7 201 6 U.S. $ (14,177 ) $ 11,203 $ 2,207 Foreign 662 757 513 Income (loss) before income taxes $ (13,515 ) $ 11,960 $ 2,720 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Year Ended December 31, 201 8 201 7 201 6 Current: Federal $ (15) $ 148 $ — State 123 71 16 Foreign 303 511 131 Total Current 411 730 147 Deferred: Federal 15,674 (17,393) (24) State 1,230 (1,348) (2) Foreign (60) (22) 22 Total Deferred 16,844 (18,763) (4) Tax provision $ 17,255 $ (18,033) $ 143 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | December 31, 201 8 201 7 Net operating loss carryforwards $ 11,227 $ 8,604 Stock-based compensation 1,040 1,179 Other accruals and reserves 1,924 1,663 Credits 10,857 11,781 Foreign 457 399 Accrued warranty 1,863 847 Depreciation and amortization 2,024 1,592 Other 282 303 Deferred tax asset before valuation allowance 29,674 26,368 Valuation allowance (27,865) (7,242) Deferred tax asset after valuation allowance 1,809 19,126 Deferred tax liability (1,269) — Deferred tax liability on goodwill (83) (71) Net deferred tax asset $ 457 $ 19,055 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Year Ended December 31, 201 8 2017* 2016* U.S. federal statutory income tax rate 21.00 % 34.00 % 34.00 % State tax rate (4.95) (5.59) (14.56) Meals and entertainment (2.66) 2.15 7.56 Stock-based compensation 13.66 (21.55) 14.36 SAB 118 Change in Estimate (2.43) — Foreign rate differential 0.11 (0.50) (0.16) Other (1.21) 0.65 (2.15) General business credit 4.31 (2.72) (9.25) Change in Federal Tax Rate — 60.98 — Valuation allowance (155.49) (218.17) (24.57) Effective tax rate (127.66) % (150.75) % 5.23 % |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | Year Ended December 31, 201 8 201 7 201 6 Balance at beginning of year $ 1,519 $ 707 $ 651 Decreases related to prior year tax positions (70) 643 — Increases related to current year tax positions 114 169 56 Balance at end of year $ 1,563 $ 1,519 $ 707 |
Note 8 - Net Loss Per Share (Ta
Note 8 - Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Year Ended December 31, 201 8 201 7 201 6 Numerator: Net Income(loss) $ (30,770) $ 29,993 $ 2,577 Denominator: Weighted average shares of common stock outstanding used in computing net income (loss) per share, basic 13,771 13,873 13,225 Dilutive effect of incremental shares and share equivalents — 855 528 Weighted average shares of common stock outstanding used in computing net income (loss) per share, diluted 13,771 14,728 13,753 Net income(loss) per share: Net income (loss) per share, basic $ (2.23) $ 2.16 $ 0.19 Net income (loss) per share, diluted $ (2.23) $ 2.04 $ 0.19 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Year Ended December 31, 201 8 201 7 201 6 Options to purchase common stock 664 42 220 Restricted stock units 432 9 24 Employee stock purchase plan shares 133 — — Performance stock units 43 — — Total 1,272 51 244 |
Note 10 - Segment Information_2
Note 10 - Segment Information and Revenue by Geography and Products (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | Year Ended December 31, 201 8 201 7 201 6 Revenue mix by geography: United States $ 101,862 $ 94,581 $ 65,513 Japan 17,819 17,264 14,727 Asia, excluding Japan 15,467 13,719 13,445 Europe 8,875 8,317 7,539 Rest of the world 18,696 17,612 16,832 Total Consolidated revenue $ 162,720 $ 151,493 $ 118,056 Revenue mix by product category: Systems $ 132,594 $ 125,883 $ 92,721 Consumables 4,162 2,435 2,498 Skincare 5,778 4,342 3,809 Total product revenue 142,535 132,660 99,028 Service 20,185 18,833 19,028 Total Consolidated revenue $ 162,720 $ 151,493 $ 118,056 |
Note 11 - Commitments and Con_2
Note 11 - Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Year Ending December 31, Amount 2019 $ 3,011 2020 2,939 2021 2,564 2022 2,495 2023 and thereafter 214 Future minimum rental payments $ 11,223 |
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | Year Ending December 31, Amount 2019 $ 576 2020 287 2021 152 Future minimum lease payments $ 1,015 |
Supplementary Financial Data _2
Supplementary Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Quarterly Financial Information [Table Text Block] | Quarter ended: Dec. 31, 201 8 Sept. 30, 201 8 June 30, 201 8 March 31, 201 8 Dec. 31, 201 7 Sept. 30, 201 7 June 30, 201 7 March 31, 201 7 Net revenue $ 45,469 $ 40,573 $ 42,553 $ 34,125 $ 47,632 $ 38,173 $ 36,389 $ 29,299 Cost of revenue 26,683 18,688 20,176 16,791 20,299 15,963 15,343 13,778 Gross profit 18,786 21,885 22,377 17,334 27,333 22,210 21,046 15,521 Operating expenses: Sales and marketing 15,318 14,479 15,535 13,088 15,362 13,148 12,787 10,773 Research and development 3,464 3,244 4,095 3,556 3,481 3,467 2,981 2,945 General and administrative 5,494 5,160 4,902 5,439 3,947 3,379 3,548 3,216 Lease termination income — — — — — (4,000 ) — — Total operating expenses 24,276 22,883 24,532 22,083 22,790 15,994 19,316 16,934 Income (loss) from operations (5,490 ) (998 ) (2,155 ) (4,749 ) 4,543 6,216 1,730 (1,413 ) Interest and other income, net (44 ) (49 ) (129 ) 98 138 197 276 273 Income (loss) before income taxes (5,534 ) (1,047 ) (2,284 ) (4,651 ) 4,681 6,413 2,006 (1,140 ) Income tax provision 20,760 (174 ) (712 ) (2,619 ) (18,199 ) 225 59 (118 ) Net income (loss) $ (26,293 ) $ (873 ) $ (1,572 ) $ (2,032 ) $ 22,880 $ 6,188 $ 1,947 $ (1,022 ) Net income (loss) per share—basic $ (1.89 ) $ (0.06 ) $ (0.11 ) $ (0.15 ) $ 1.66 $ 0.44 $ 0.14 $ (0.07 ) Net income (loss) per share—diluted $ (1.89 ) $ (0.06 ) $ (0.11 ) $ (0.15 ) $ 1.57 $ 0.42 $ 0.13 $ (0.07 ) Weighted average number of shares used in per share calculations: Basic 13,932 13,851 13,709 13,587 13,744 13,973 13,935 13,840 Diluted 13,932 13,851 13,709 13,587 14,569 14,767 14,629 13,840 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Summary of Valuation Allowance [Table Text Block] | Balance at Beginning of Year Additions Deductions Balance at End of Year Deferred tax assets valuation allowance Year ended December 31, 2018 $ 7,242 $ 22,770 $ 2,147 $ 27,865 Year ended December 31, 2017 $ 31,751 $ 617 $ 25,126 $ 7,242 Year ended December 31, 2016 $ 27,616 $ 6,755 $ 2,620 $ 31,751 Balance at Beginning of Year Additions Deductions Balance at End of Year Allowance for doubtful accounts receivable Year ended December 31, 2018 $ 9 $ 1,880 $ 632 $ 1,257 Year ended December 31, 2017 $ 21 $ 14 $ 26 $ 9 Year ended December 31, 2016 $ 4 $ 21 $ 4 $ 21 |
Note 1 - Summary of Significa_3
Note 1 - Summary of Significant Accounting Policies (Details Textual) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2019 | Jan. 01, 2018 | |
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 3,813,000 | ||||
Deferred Revenue | $ 11,855,000 | 10,719,000 | $ 9,431,000 | ||
Revenue from Contract with Customer, Including Assessed Tax | 162,720,000 | 151,493,000 | 118,056,000 | ||
Impairment of Long-Lived Assets Held-for-use | 0 | 0 | 0 | ||
Inventory, Finished Goods, Gross, Total | 2,900,000 | 1,900,000 | |||
Depreciation, Total | $ 1,200,000 | 1,000,000 | 800,000 | ||
Number of Operating Segments | 1 | ||||
Advertising Expense | $ 2,800,000 | 1,800,000 | 1,300,000 | ||
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | 400,000 | 7,300,000 | |||
Selling and Marketing Expense [Member] | |||||
Capitalized Contract Cost, Amortization | 1,800,000 | ||||
Other Noncurrent Assets [Member] | |||||
Capitalized Contract Cost, Net, Total | 5,200,000 | ||||
UNITED STATES | |||||
Revenue from Contract with Customer, Including Assessed Tax | $ 101,862,000 | $ 94,581,000 | $ 65,513,000 | ||
Percentage of Assets | 89.00% | 98.00% | |||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||||
Concentration Risk, Percentage | 4.90% | 4.90% | |||
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | UNITED STATES | |||||
Concentration Risk, Percentage | 62.00% | 62.00% | 55.00% | ||
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Outside the United States [Member] | |||||
Concentration Risk, Percentage | 37.00% | 38.00% | 45.00% | ||
Service [Member] | |||||
Revenue from Contract with Customer, Including Assessed Tax | $ 20,185,000 | $ 18,833,000 | $ 19,028,000 | ||
Bill and Hold Arrangement [Member] | |||||
Revenue from Contract with Customer, Including Assessed Tax | 938,000 | $ 0 | |||
Retained Earnings [Member] | |||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 3,813,000 | ||||
Accounting Standards Update 2014-09 [Member] | |||||
Deferred Revenue | $ (237,000) | ||||
Extended Product Warranty Accrual, Ending Balance | 151,000 | ||||
Variable Consideration | 210,000 | ||||
Capitalized Contract Cost, Net, Total | 4,700,000 | ||||
Deferred Tax Liabilities, Net, Noncurrent | 1,200,000 | ||||
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | |||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 3,800,000 | ||||
Minimum [Member] | Distributors [Member] | |||||
Standard Warranty Period | 1 year 60 days | ||||
Minimum [Member] | Subsequent Event [Member] | Accounting Standards Update 2016-02 [Member] | |||||
Finance Lease, Liability, Total | $ 10,000,000 | ||||
Operating Lease, Right-of-Use Asset | 10,500,000 | ||||
Maximum [Member] | Distributors [Member] | |||||
Standard Warranty Period | 1 year 120 days | ||||
Maximum [Member] | Subsequent Event [Member] | Accounting Standards Update 2016-02 [Member] | |||||
Finance Lease, Liability, Total | 11,000,000 | ||||
Operating Lease, Right-of-Use Asset | $ 11,000,000 |
Note 1 - Summary of Significa_4
Note 1 - Summary of Significant Accounting Policies - Summary of Effects of Adopting Topic 606 on the Condensed Consolidated Financial Statements (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |||
Other long-term assets | $ 5,971,000 | $ 374,000 | $ 5,971,000 | $ 374,000 | ||||||||||
Deferred revenue | 11,855,000 | 10,719,000 | 11,855,000 | 10,719,000 | $ 9,431,000 | |||||||||
Retained earnings (deficit) | (24,010,000) | 2,947,000 | (24,010,000) | 2,947,000 | ||||||||||
Products revenue | 162,720,000 | 151,493,000 | 118,056,000 | |||||||||||
Sales and marketing | 15,318,000 | $ 14,479,000 | $ 15,535,000 | $ 13,088,000 | 15,362,000 | $ 13,148,000 | $ 12,787,000 | $ 10,773,000 | 58,420,000 | 52,070,000 | 41,563,000 | |||
Interest and other income(expense), net | (44,000) | $ (49,000) | $ (129,000) | $ 98,000 | $ 138,000 | $ 197,000 | $ 276,000 | $ 273,000 | (123,000) | [1] | 884,000 | 323,000 | ||
Accounting Standards Update 2014-09 [Member] | ||||||||||||||
Deferred revenue | $ (237,000) | |||||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||||||||||||
Other long-term assets | (5,217,000) | (5,217,000) | ||||||||||||
Deferred revenue | (106,000) | (106,000) | ||||||||||||
Retained earnings (deficit) | 4,610,000 | 4,610,000 | ||||||||||||
Interest and other income(expense), net | [1] | 297,000 | ||||||||||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||||||||||||
Other long-term assets | 754,000 | 754,000 | ||||||||||||
Deferred revenue | 12,460,000 | 12,460,000 | ||||||||||||
Retained earnings (deficit) | $ (19,400,000) | (19,400,000) | ||||||||||||
Interest and other income(expense), net | [1] | 174,000 | ||||||||||||
Product [Member] | ||||||||||||||
Products revenue | 142,535,000 | 132,660,000 | 99,028,000 | |||||||||||
Sales and marketing | 58,420,000 | |||||||||||||
Product [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||||||||||||
Products revenue | 274,000 | |||||||||||||
Sales and marketing | 540,000 | |||||||||||||
Product [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||||||||||||
Products revenue | 142,261,000 | |||||||||||||
Sales and marketing | 58,960,000 | |||||||||||||
Service [Member] | ||||||||||||||
Products revenue | 20,185,000 | $ 18,833,000 | $ 19,028,000 | |||||||||||
Service [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||||||||||||
Products revenue | 280,000 | |||||||||||||
Service [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||||||||||||
Products revenue | $ 19,905,000 | |||||||||||||
[1] | Included in interest and other income, net, is the estimated interest expense for advance payment related to service contracts under the new revenue standard. |
Note 1 - Summary of Significa_5
Note 1 - Summary of Significant Accounting Policies - Useful Lives of Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Equipment and Furniture [Member] | |
Property, plant, and equipment, useful lives (Year) | 3 years |
Machinery and Equipment [Member] | |
Property, plant, and equipment, useful lives (Year) | 3 years |
Note 2 - Investment Securitie_2
Note 2 - Investment Securities (Details Textual) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 0 | $ 0 |
Note 2 - Investment Securitie_3
Note 2 - Investment Securities - Cash, Cash Equivalents and Marketable Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Cash | $ 21,969 | $ 14,058 |
Cash equivalents | 26,052 | 14,184 |
Marketable securities | 9,523 | 21,728 |
Total cash, cash equivalents and marketable securities | 35,575 | 35,912 |
US Treasury and Government [Member] | ||
Marketable securities | 1,397 | 11,870 |
US Government Agencies Debt Securities [Member] | ||
Marketable securities | 2,677 | |
US States and Political Subdivisions Debt Securities [Member] | ||
Marketable securities | 200 | 200 |
Corporate Debt Securities [Member] | ||
Marketable securities | 2,816 | 7,825 |
Money Market Funds [Member] | ||
Cash equivalents | 4,083 | 126 |
Commercial Paper [Member] | ||
Cash equivalents | $ 2,433 | $ 1,833 |
Note 2 - Investment Securitie_4
Note 2 - Investment Securities - Unrealized Gains and Losses Related to Marketable Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Cash and cash equivalents, Amortized Cost | $ 26,052 | $ 14,184 | $ 13,775 | $ 10,868 |
Cash and cash equivalents, Fair Market Value | 26,052 | 14,184 | ||
Marketable investments, Amortized Cost | 9,532 | 21,760 | ||
Marketable investments, Gross Unrealized Gains | 2 | |||
Marketable investments, Gross Unrealized Losses | (9) | (34) | ||
Marketable investments, Fair Market Value | 9,523 | 21,728 | ||
Marketable investments, Gross Unrealized Losses | 9 | 34 | ||
Total cash, cash equivalents and marketable securities, Amortized Cost | 35,584 | 35,944 | ||
Total cash, cash equivalents and marketable securities, Fair Market Value | 35,575 | 35,912 | ||
US Treasury and Government [Member] | ||||
Marketable investments, Amortized Cost | 1,397 | 11,885 | ||
Marketable investments, Gross Unrealized Gains | ||||
Marketable investments, Gross Unrealized Losses | (15) | |||
Marketable investments, Fair Market Value | 1,397 | 11,870 | ||
Marketable investments, Gross Unrealized Losses | 15 | |||
US Government Agencies Debt Securities [Member] | ||||
Marketable investments, Amortized Cost | 2,677 | |||
Marketable investments, Gross Unrealized Gains | ||||
Marketable investments, Gross Unrealized Losses | ||||
Marketable investments, Fair Market Value | 2,677 | |||
Marketable investments, Gross Unrealized Losses | ||||
US States and Political Subdivisions Debt Securities [Member] | ||||
Marketable investments, Amortized Cost | 200 | 201 | ||
Marketable investments, Gross Unrealized Gains | ||||
Marketable investments, Gross Unrealized Losses | (1) | |||
Marketable investments, Fair Market Value | 200 | 200 | ||
Marketable investments, Gross Unrealized Losses | 1 | |||
Commercial Paper, Not Included with Cash and Cash Equivalents [Member] | ||||
Marketable investments, Amortized Cost | 2,433 | 1,836 | ||
Marketable investments, Gross Unrealized Gains | ||||
Marketable investments, Gross Unrealized Losses | (3) | |||
Marketable investments, Fair Market Value | 2,433 | 1,833 | ||
Marketable investments, Gross Unrealized Losses | 3 | |||
Corporate Debt Securities [Member] | ||||
Marketable investments, Amortized Cost | 2,825 | 7,838 | ||
Marketable investments, Gross Unrealized Gains | 2 | |||
Marketable investments, Gross Unrealized Losses | (9) | (15) | ||
Marketable investments, Fair Market Value | 2,816 | 7,825 | ||
Marketable investments, Gross Unrealized Losses | $ 9 | $ 15 |
Note 2 - Investment Securitie_5
Note 2 - Investment Securities - Maturities of Available-for-sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Due in less than one year | $ 9,121 | |
Due in 1 to 3 years | 402 | |
Total marketable securities | $ 9,523 | $ 21,728 |
Note 2 - Investment Securitie_6
Note 2 - Investment Securities - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Cash equivalents | $ 26,052 | $ 14,184 |
Available-for-sale securities | 9,523 | 21,728 |
Fair Value, Measurements, Recurring [Member] | ||
Available-for-sale securities | 9,523 | 21,728 |
Total assets at fair value | 13,606 | 21,854 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available-for-sale securities | ||
Total assets at fair value | 4,083 | 126 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale securities | 9,523 | 21,728 |
Total assets at fair value | 9,523 | 21,728 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Available-for-sale securities | ||
Total assets at fair value | ||
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Cash equivalents | 4,083 | 126 |
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Cash equivalents | 4,083 | 126 |
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Cash equivalents | ||
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Cash equivalents | ||
Commercial Paper [Member] | Fair Value, Measurements, Recurring [Member] | ||
Cash equivalents | ||
Commercial Paper [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Cash equivalents | ||
Commercial Paper [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Cash equivalents | ||
Commercial Paper [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Cash equivalents |
Note 3 - Balance Sheet Detail_2
Note 3 - Balance Sheet Detail (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Capital Leased Assets, Gross, Total | $ 1,900,000 | $ 1,900,000 | $ 1,600,000 | |
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation | 1,100,000 | 1,100,000 | 700,000 | |
Property, Plant and Equipment, Net, Ending Balance | 2,672,000 | 2,672,000 | 2,096,000 | |
Amortization of Intangible Assets, Total | 0 | 2,000 | $ 141,000 | |
Loss Contingency Accrual, Product Liability, Net, Total | 5,000,000 | 5,000,000 | ||
Product Liability Accrual, Period Expense | 1,100,000 | |||
Extended Product Warranty Accrual, Current | 3,159,000 | 3,159,000 | ||
Accrued Liabilities, Current [Member] | ||||
Loss Contingency Accrual, Product Liability, Net, Total | 800,000 | 800,000 | ||
Construction in Progress [Member] | ||||
Property, Plant and Equipment, Net, Ending Balance | $ 0.40 | $ 0.40 |
Note 3 - Balance Sheet Detail -
Note 3 - Balance Sheet Detail - Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Raw materials | $ 16,991 | $ 19,160 |
Work in process | 2,306 | 2,744 |
Finished goods | 8,717 | 6,878 |
Total | $ 28,014 | $ 28,782 |
Note 3 - Balance Sheet Detail_3
Note 3 - Balance Sheet Detail - Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, plant and equipment, gross | $ 10,799 | $ 9,287 |
Less: Accumulated depreciation | (8,127) | (7,191) |
Property and equipment, net | 2,672 | 2,096 |
Leasehold Improvements [Member] | ||
Property, plant and equipment, gross | 660 | 640 |
Equipment and Furniture [Member] | ||
Property, plant and equipment, gross | 2,835 | 2,370 |
Machinery and Equipment [Member] | ||
Property, plant and equipment, gross | $ 7,304 | $ 6,277 |
Note 3 - Balance Sheet Detail_4
Note 3 - Balance Sheet Detail - Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accumulated amortization and impairment amount | $ 4,663 | $ 4,663 |
Goodwill | 1,339 | 1,339 |
Goodwill | 1,339 | 1,339 |
Total | 6,002 | 6,002 |
Total | 1,339 | 1,339 |
Patents [Member] | ||
Gross carrying amount | 1,218 | 1,218 |
Accumulated amortization and impairment amount | 1,218 | 1,218 |
Net amount | ||
Customer Relationships [Member] | ||
Gross carrying amount | 2,510 | 2,510 |
Accumulated amortization and impairment amount | 2,510 | 2,510 |
Net amount | ||
Other Intangible Assets [Member] | ||
Gross carrying amount | 780 | 780 |
Accumulated amortization and impairment amount | 780 | 780 |
Net amount | ||
Other Intangible [Member] | ||
Gross carrying amount | 155 | 155 |
Accumulated amortization and impairment amount | 155 | 155 |
Net amount |
Note 3 - Balance Sheet Detail_5
Note 3 - Balance Sheet Detail - Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accrued payroll and related expenses | $ 9,377 | $ 12,567 |
Sales and marketing accruals | 2,379 | 3,710 |
Accrued sales tax | 2,935 | 2,920 |
Warranty liability | 4,666 | 3,508 |
Other accrued liabilities | 3,943 | 4,143 |
Total | $ 23,300 | $ 26,848 |
Note 4 - Warranty and Extende_3
Note 4 - Warranty and Extended Services Contracts (Details Textual) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Extended Product Warranty Accrual, Current | $ 3,159 |
Note 4 - Warranty and Extende_4
Note 4 - Warranty and Extended Services Contracts - Summary of Warranties (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Balance at beginning of year | $ 3,508 | $ 2,461 |
Add: Accruals for warranties issued during the period | 9,205 | 7,583 |
Less: Warranty related expenses during the period | (8,045) | (6,536) |
Balance at end of year | $ 4,668 | $ 3,508 |
Note 5 - Deferred Revenue (Deta
Note 5 - Deferred Revenue (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue, Remaining Performance Obligation, Percentage | 79.00% | ||
Revenue, Remaining Performance Obligation, Amount | $ 12,600 | ||
Deferred Revenue Costs Incurred | 7,800 | $ 6,000 | $ 6,700 |
Extended Product Warranty Accrual, Current | $ 3,159 |
Note 5 - Deferred Revenue - Sum
Note 5 - Deferred Revenue - Summary of Deferred Service Contract Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred service contract revenue | $ 10,719 | $ 9,431 |
Add: Payments received | 14,882 | 14,369 |
Less: Revenue recognized | (13,746) | (13,081) |
Deferred service contract revenue | $ 11,855 | $ 10,719 |
Note 6 - Stockholders' Equity_3
Note 6 - Stockholders' Equity, Stock Plans and Stock-based Compensation Expense (Details Textual) - USD ($) | Dec. 15, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2013 | Oct. 31, 2017 | Dec. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 8,300,000 | $ 8,000,000 | $ 3,600,000 | ||||
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options, Net | $ 1,300,000 | $ 4,000,000 | $ 9,500,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 21,010 | 278,250 | 162,000 | ||||
Shares Paid for Tax Withholding for Share Based Compensation | 77,049 | 64,490 | 56,157 | ||||
Adjustments Related to Tax Withholding for Share-based Compensation | $ 3,130,360 | $ 11,471,000 | $ 619,000 | ||||
Minimum [Member] | |||||||
Share Based Compensation, Forfeiture Rate | 0.00% | ||||||
Maximum [Member] | |||||||
Share Based Compensation, Forfeiture Rate | 17.00% | ||||||
Non-employees [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 7,745 | ||||||
Employee Stock Option [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||||
Option Granted Contractual Term | 7 years | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | $ 12,800,000 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 229 days | ||||||
Employee Stock Option [Member] | Non-employees [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||||||
Employee Stock Option [Member] | Non-employees [Member] | Vesting on First Anniversary of Grant Date [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | ||||||
Employee Stock Option [Member] | Non-employees [Member] | Vesting Each Month After First Anniversary of Grant Date [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0.02083% | ||||||
Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 265,124 | 412,208 | 480,191 | ||||
Share Price | $ 17.02 | $ 45.35 | $ 17.35 | $ 12.79 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 4,900,000 | $ 2,500,000 | $ 2,200,000 | ||||
Restricted Stock Units (RSUs) [Member] | Non-employees [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 3,384 | 2,478 | 0 | ||||
Restricted Stock Units (RSUs) [Member] | Non-employees [Member] | Vesting Each Anniversary of Grant Date [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | ||||||
Performance Shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 49,498 | 117,418 | 204,976 | ||||
Stock Purchase Plan [Member] | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | $ 272,000 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 120 days | ||||||
1998 Stock Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 4,650,000 | ||||||
Two Thousand Four Equity Incentive Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,750,000 | ||||||
Number of Stock Awards Counted for Every Share Granted or Canceled | 2.12 | ||||||
Share Based Compensation by Share Based Payment Fully Vested Stock Awards Grant Date Fair Value | $ 60,000 | ||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures, Total | 13,392 | 21,605 | 45,350 | ||||
Two Thousand Four Equity Incentive Plan [Member] | Employee Stock Option [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||||||
Option Exercisable in Hundredths | 25.00% | ||||||
Share Price | $ 17.02 | $ 45.35 | $ 17.35 | $ 12.79 | |||
Two Thousand Four Equity Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||||||
Share Based Compensation by Share Based Payment Fully Vested Stock Awards Grant Date Fair Value | $ 60,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 6,500 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 120,273 | 270,707 | 229,865 | ||||
Two Thousand Four Equity Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | President and Chief Executive Officer [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 100,000 | ||||||
Two Thousand Four Equity Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | President and Chief Executive Officer [Member] | Share-based Compensation Award, Tranche One [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 15.00% | ||||||
Two Thousand Four Equity Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | President and Chief Executive Officer [Member] | Share-based Compensation Award, Tranche Two [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 15.00% | ||||||
Two Thousand Four Equity Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | President and Chief Executive Officer [Member] | Share-based Compensation Award, Tranche Three [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | ||||||
Two Thousand Four Equity Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | President and Chief Executive Officer [Member] | Share-based Compensation Award, Tranche Four [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 45.00% | ||||||
2004 Employee Stock Purchase Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 600,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 85.00% | ||||||
Stock Issued During Period, Shares, Employee Stock Ownership Plan | 64,511 | 78,479 | 79,922 | ||||
Common Stock, Capital Shares Reserved for Future Issuance | 627,073 |
Note 6 - Stockholders' Equity_4
Note 6 - Stockholders' Equity, Stock Plans and Stock-based Compensation Expense - Activity Under the 2004 Equity Incentive Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Balances, shares available for grant (in shares) | 1,494,866 | 721,657 | 1,263,425 | ||
Balances, stock options outstanding (in shares) | 839,919 | 1,116,472 | 2,148,797 | ||
Balances, weighted-average exercise price (in dollars per share) | $ 16.46 | $ 9.56 | $ 9.31 | ||
Balances, options outstanding weighted-average remaining contractual life (Year) | 3 years 189 days | 3 years 361 days | 3 years 255 days | 3 years 146 days | |
Balances, aggregate intrinsic value | [1] | $ 2,000 | $ 24,400 | $ 8,700 | $ 7,900 |
Options granted, shares available for grant (in shares) | (21,010) | (278,250) | (162,000) | ||
Options granted, stock options outstanding (in shares) | 21,010 | 278,250 | 162,000 | ||
Options granted, weighted-average exercise price (in dollars per share) | $ 50.65 | $ 31 | $ 11.55 | ||
Options exercised, stock options outstanding (in shares) | (271,902) | (488,398) | (1,051,138) | ||
Options exercised, weighted-average exercise price (in dollars per share) | $ 9.99 | $ 8.96 | $ 8.89 | ||
Options cancelled (expired or forfeited), shares available for grant (in shares) | 81,322 | 66,405 | 143,187 | ||
Options cancelled (expired or forfeited), stock options outstanding (in shares) | (81,322) | (66,405) | (143,187) | ||
Options cancelled (expired or forfeited), weighted-average exercise price (in dollars per share) | $ 2,155 | $ 16.54 | $ 12.93 | ||
Stock awards granted, shares available for grant (in shares) | (562,070) | (873,881) | (1,018,005) | ||
Stock awards cancelled (expired or forfeited), shares available for grant (in shares) | 148,197 | 258,935 | 495,050 | ||
Additional shares reserved, shares available for grant (in shares) | [2] | 1,600,000 | |||
Balances, shares available for grant (in shares) | 1,141,305 | 1,494,866 | 721,657 | 1,263,425 | |
Balances, stock options outstanding (in shares) | 507,705 | 839,919 | 1,116,472 | 2,148,797 | |
Balances, weighted-average exercise price (in dollars per share) | $ 20.52 | $ 16.46 | $ 9.56 | $ 9.31 | |
Exercisable, stock options outstanding (in shares) | 335,348 | ||||
Exercisable, weighted-average exercise price (in dollars per share) | $ 14.68 | ||||
Exercisable, options outstanding weighted-average remaining contractual life (Year) | 2 years 266 days | ||||
Exercisable, aggregate intrinsic value | [1] | $ 1,870 | |||
Vested and expected to vest (in shares) | 485,469 | ||||
Vested and expected to vest, weighted-average exercise price (in dollars per share) | $ 19.88 | ||||
Vested and expected to vest, weighted-average remaining contractual life (Year) | 3 years 153 days | ||||
Vested and expected to vest, aggregate intrinsic value | [1] | $ 19,860 | |||
[1] | Based on the closing stock price of $17.02 of the Company’s stock on December 31, 2018, $45.35 on December 30, 2017, $17.35 on December 31 2016 and $12.79 on December 31, 2015. | ||||
[2] | Approved by the board of directors and stockholders in 2017.. |
Note 6 - Stockholders' Equity_5
Note 6 - Stockholders' Equity, Stock Plans and Stock-based Compensation Expense - Options Outstanding and Exercisable Price Ranges (Details) | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Exercise Price Range 1 [Member] | |
Range of exercise prices, lower limit (in dollars per share) | $ / shares | $ 6.88 |
Range of exercise prices, upper limit (in dollars per share) | $ / shares | $ 7.44 |
Options outstanding, number outstanding (in shares) | 28,832 |
Options outstanding, weighted-average remaining contractual life (Year) | 211 days |
Options exercisable, number outstanding (in shares) | 28,832 |
Exercise Price Range 2 [Member] | |
Options outstanding, number outstanding (in shares) | 97,268 |
Options outstanding, weighted-average remaining contractual life (Year) | 1 year 160 days |
Options exercisable, number outstanding (in shares) | 97,268 |
Range of exercise prices (in dollars per share) | $ / shares | $ 8.80 |
Exercise Price Range 3 [Member] | |
Range of exercise prices, lower limit (in dollars per share) | $ / shares | 9.65 |
Range of exercise prices, upper limit (in dollars per share) | $ / shares | $ 10.79 |
Options outstanding, number outstanding (in shares) | 54,564 |
Options outstanding, weighted-average remaining contractual life (Year) | 3 years 3 days |
Options exercisable, number outstanding (in shares) | 49,544 |
Exercise Price Range 4 [Member] | |
Range of exercise prices, lower limit (in dollars per share) | $ / shares | $ 10.80 |
Range of exercise prices, upper limit (in dollars per share) | $ / shares | $ 11.24 |
Options outstanding, number outstanding (in shares) | 57,521 |
Options outstanding, weighted-average remaining contractual life (Year) | 3 years 65 days |
Options exercisable, number outstanding (in shares) | 47,293 |
Exercise Price Range 5 [Member] | |
Range of exercise prices, lower limit (in dollars per share) | $ / shares | $ 11.67 |
Range of exercise prices, upper limit (in dollars per share) | $ / shares | $ 17.90 |
Options outstanding, number outstanding (in shares) | 72,583 |
Options outstanding, weighted-average remaining contractual life (Year) | 2 years 160 days |
Options exercisable, number outstanding (in shares) | 48,855 |
Exercise Price Range 6 [Member] | |
Range of exercise prices, lower limit (in dollars per share) | $ / shares | $ 18.55 |
Range of exercise prices, upper limit (in dollars per share) | $ / shares | $ 25.70 |
Options outstanding, number outstanding (in shares) | 71,250 |
Options outstanding, weighted-average remaining contractual life (Year) | 5 years 76 days |
Options exercisable, number outstanding (in shares) | 28,512 |
Exercise Price Range 7 [Member] | |
Options outstanding, number outstanding (in shares) | 72,000 |
Options outstanding, weighted-average remaining contractual life (Year) | 5 years 302 days |
Options exercisable, number outstanding (in shares) | 23,230 |
Range of exercise prices (in dollars per share) | $ / shares | $ 39.30 |
Exercise Price Range 8 [Member] | |
Options outstanding, number outstanding (in shares) | 6,510 |
Options outstanding, weighted-average remaining contractual life (Year) | 6 years 164 days |
Options exercisable, number outstanding (in shares) | |
Range of exercise prices (in dollars per share) | $ / shares | $ 43.40 |
Exercise Price Range 9 [Member] | |
Options outstanding, number outstanding (in shares) | 38,927 |
Options outstanding, weighted-average remaining contractual life (Year) | 5 years 313 days |
Options exercisable, number outstanding (in shares) | 10,564 |
Range of exercise prices (in dollars per share) | $ / shares | $ 47.40 |
Exercise Price Range 10 [Member] | |
Options outstanding, number outstanding (in shares) | 8,250 |
Options outstanding, weighted-average remaining contractual life (Year) | 5 years 109 days |
Options exercisable, number outstanding (in shares) | 1,250 |
Range of exercise prices (in dollars per share) | $ / shares | $ 53.90 |
Note 6 - Stockholders' Equity_6
Note 6 - Stockholders' Equity, Stock Plans and Stock-based Compensation Expense - Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs) [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||
Outstanding, number of shares (in shares) | 510,587 | 445,317 | 371,630 | |||||
Outstanding, weighted-average grant date fair value (in dollars per share) | $ 24.88 | $ 11.15 | $ 12.39 | |||||
Outstanding, aggregate intrinsic value | [1] | $ 8,072 | $ 23,155 | $ 7,726 | $ 4,753 | |||
Granted, number of shares (in shares) | 265,124 | 412,208 | 480,191 | |||||
Granted, weighted-average grant date fair value (in dollars per share) | $ 44.57 | $ 28.74 | $ 10.80 | |||||
Vested, number of shares (in shares) | [2] | (231,515) | (224,799) | (172,990) | ||||
Vested, weighted-average grant date fair value (in dollars per share) | [2] | $ 21.10 | $ 10.91 | $ 12.56 | ||||
Vested, aggregate fair value | [2],[4] | $ 9,483 | [3] | $ 5,168 | [5] | $ 1,906 | [6] | |
Forfeited, number of shares (in shares) | (69,905) | (122,139) | (233,514) | |||||
Forfeited, weighted-average grant date fair value (in dollars per share) | $ 20.01 | $ 13.56 | $ 11.36 | |||||
Outstanding, number of shares (in shares) | 474,291 | 510,587 | 445,317 | |||||
Outstanding, weighted-average grant date fair value (in dollars per share) | $ 38.44 | $ 24.88 | $ 11.15 | |||||
[1] | Based on the closing stock price of the Company's stock of $ 17.02 on December 31, 2018, $45.35 on December 31, 2017, $17.35 on December 31, 2016 and $12.79 on December 30, 2015. | |||||||
[2] | The number of restricted stock units vested includes shares that the Company withheld on behalf of the employees to satisfy the statutory tax withholding requirements. | |||||||
[3] | On the grant date, the fair value for these vested awards was $4.9 million. | |||||||
[4] | Represents the value of the Company's stock on the date that the restricted stock units and performance stock units vest. | |||||||
[5] | On the grant date, the fair value for these vested awards was $2.5 million. | |||||||
[6] | On the grant date, the fair value for these vested awards was $2.2 million. |
Note 6 - Stockholders' Equity_7
Note 6 - Stockholders' Equity, Stock Plans and Stock-based Compensation Expense - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allocated share-based compensation expense | $ 7,157 | $ 5,110 | $ 3,713 |
Employee Stock Option [Member] | |||
Allocated share-based compensation expense | 838 | 815 | 989 |
Restricted Stock Units (RSUs) [Member] | |||
Allocated share-based compensation expense | 4,648 | 1,813 | 1,508 |
Performance Shares [Member] | |||
Allocated share-based compensation expense | 1,105 | 2,093 | 967 |
ESPP [Member] | |||
Allocated share-based compensation expense | $ 566 | $ 389 | $ 249 |
Note 6 - Stockholders' Equity_8
Note 6 - Stockholders' Equity, Stock Plans and Stock-based Compensation Expense - Stock-based Compensation Expense by Department (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allocated share-based compensation expense | $ 7,157 | $ 5,110 | $ 3,713 |
Cost of Sales [Member] | |||
Allocated share-based compensation expense | 743 | 660 | 341 |
Selling and Marketing Expense [Member] | |||
Allocated share-based compensation expense | 2,105 | 1,642 | 1,179 |
Research and Development Expense [Member] | |||
Allocated share-based compensation expense | 824 | 936 | 596 |
General and Administrative Expense [Member] | |||
Allocated share-based compensation expense | $ 3,485 | $ 1,872 | $ 1,597 |
Note 6 - Stockholders' Equity_9
Note 6 - Stockholders' Equity, Stock Plans and Stock-based Compensation Expense - Valuation Assumptions and Fair Value of Stock Option and ESPP Grants (Details) - $ / shares | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Employee Stock Option [Member] | ||||
Expected term (in years) (Year) | [1] | 3 years 255 days | 3 years 255 days | 3 years 302 days |
Risk-free interest rate | [2] | 2.60% | 1.73% | 1.09% |
Volatility | [3] | 44.00% | 40.00% | 40.00% |
Dividend yield | [4] | |||
Weighted average estimated fair value at grant date (in dollars per share) | $ 18 | $ 9.98 | $ 3.72 | |
Stock Purchase Plan [Member] | ||||
Expected term (in years) (Year) | [1] | 182 days | 182 days | 182 days |
Risk-free interest rate | [2] | 2.34% | 1.14% | 0.46% |
Volatility | [3] | 61.00% | 42.00% | 39.00% |
Dividend yield | [4] | |||
Weighted average estimated fair value at grant date (in dollars per share) | $ 9.60 | $ 8.21 | $ 3.22 | |
[1] | The expected term represents the period during which the Company's stock-based awards are expected to be outstanding. The estimated term is based on historical experience of similar awards, giving consideration to the contractual terms of the awards, vesting requirements, and expectation of future employee behavior, including post-vesting terminations. The expected term of groups of employees that have similar historical exercise patterns has been considered separately for valuation purposes. | |||
[2] | The risk-free interest rate is based on U.S. Treasury debt securities with maturities close to the expected term of the option as of the date of grant. | |||
[3] | Estimated volatility is based on historical volatility. The Company also considers implied volatility when there is sufficient volume of freely traded options with comparable terms and exercise prices in the open market. | |||
[4] | The Company has not historically issued any dividends and does not expect to do so in the foreseeable future. |
Note 7 - Income Taxes (Details
Note 7 - Income Taxes (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ 400,000 | $ 7,300,000 |
Open Tax Year | 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total | $ 107,000 | |
Federal and US State Except California [Member] | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ (26,300,000) | |
Domestic Tax Authority [Member] | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 16,900,000 | |
Operating Loss Carryforwards, Total | 45,700,000 | |
Operating Loss Carryforwards Without Expiration | 11,800,000 | |
Domestic Tax Authority [Member] | Research Tax Credit Carryforward [Member] | ||
Tax Credit Carryforward, Amount | $ 6,700,000 | |
Domestic Tax Authority [Member] | Earliest Tax Year [Member] | ||
Operating Loss Carryforwards Expiration Year 1 | 2029 | |
Domestic Tax Authority [Member] | Earliest Tax Year [Member] | Research Tax Credit Carryforward [Member] | ||
Tax Credit Carryforward Expiration Year | 2024 | |
State and Local Jurisdiction [Member] | ||
Operating Loss Carryforwards, Total | $ 20,500,000 | |
State and Local Jurisdiction [Member] | Research Tax Credit Carryforward [Member] | California Franchise Tax Board [Member] | ||
Tax Credit Carryforward, Amount | 7,400,000 | |
State and Local Jurisdiction [Member] | Research Tax Credit Carryforward [Member] | Massachusetts Department of Revenue [Member] | ||
Tax Credit Carryforward, Amount | $ 300,000 | |
State and Local Jurisdiction [Member] | Earliest Tax Year [Member] | Research Tax Credit Carryforward [Member] | Massachusetts Department of Revenue [Member] | ||
Tax Credit Carryforward Expiration Year | 2021 |
Note 7 - Income Taxes - Income
Note 7 - Income Taxes - Income (Loss) Before Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
U.S. | $ (14,177) | $ 11,203 | $ 2,207 | ||||||||
Foreign | 662 | 757 | 513 | ||||||||
Income (loss) before income taxes | $ (5,534) | $ (1,047) | $ (2,284) | $ (4,651) | $ 4,681 | $ 6,413 | $ 2,006 | $ (1,140) | $ (13,515) | $ 11,960 | $ 2,720 |
Note 7 - Income Taxes - Incom_2
Note 7 - Income Taxes - Income Tax Provision (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Federal | $ (15) | $ 148 | |||||||||
State | 123 | 71 | 16 | ||||||||
Foreign | 303 | 511 | 131 | ||||||||
Total Current | 411 | 730 | 147 | ||||||||
Federal | 15,674 | (17,393) | (24) | ||||||||
State | 1,230 | (1,348) | (2) | ||||||||
Foreign | (60) | (22) | 22 | ||||||||
Total Deferred | 16,844 | (18,763) | (4) | ||||||||
Tax provision | $ 20,760 | $ (174) | $ (712) | $ (2,619) | $ (18,199) | $ 225 | $ 59 | $ (118) | $ 17,255 | $ (18,033) | $ 143 |
Note 7 - Income Taxes - Deferre
Note 7 - Income Taxes - Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Net operating loss carryforwards | $ 11,227 | $ 8,604 |
Stock-based compensation | 1,040 | 1,179 |
Other accruals and reserves | 1,924 | 1,663 |
Credits | 10,857 | 11,781 |
Foreign | 457 | 399 |
Accrued warranty | 1,863 | 847 |
Depreciation and amortization | 2,024 | 1,592 |
Other | 282 | 303 |
Deferred tax asset before valuation allowance | 29,674 | 26,368 |
Valuation allowance | (27,865) | (7,242) |
Deferred tax asset after valuation allowance | 1,809 | 19,126 |
Deferred tax liability | (1,269) | |
Deferred tax liability on goodwill | (83) | (71) |
Net deferred tax asset | $ 457 | $ 19,055 |
Note 7 - Income Taxes - Reconci
Note 7 - Income Taxes - Reconciliation of Effective Tax Rate (Details) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
U.S. federal statutory income tax rate | 21.00% | 34.00% | 34.00% | |
State tax rate | (4.95%) | (5.59%) | (14.56%) | |
Meals and entertainment | [1] | (2.66%) | 2.15% | 7.56% |
Stock-based compensation | 13.66% | (21.55%) | 14.36% | |
SAB 118 Change in Estimate | (2.43%) | |||
Foreign rate differential | 0.11% | (0.50%) | (0.16%) | |
Other | [1] | (1.21%) | 0.65% | (2.15%) |
General business credit | 4.31% | (2.72%) | (9.25%) | |
Change in Federal Tax Rate | 60.98% | |||
Valuation allowance | (155.49%) | (218.17%) | (24.57%) | |
Effective tax rate | (127.66%) | (150.75%) | 5.23% | |
[1] | Other balance in 2017 and 2016 was reclassified for consistency with current year. |
Note 7 - Income Taxes - Unrecog
Note 7 - Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Unrecognized tax benefits | $ 1,519 | $ 707 | $ 651 |
Decreases related to prior year tax positions | (70) | ||
Increases related to prior year tax positions | 643 | ||
Increases related to current year tax positions | 114 | 169 | 56 |
Unrecognized tax benefits | $ 1,563 | $ 1,519 | $ 707 |
Note 8 - Net Loss Per Share - N
Note 8 - Net Loss Per Share - Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net income (loss) | $ (26,293) | $ (873) | $ (1,572) | $ (2,032) | $ 22,880 | $ 6,188 | $ 1,947 | $ (1,022) | $ (30,770) | $ 29,993 | $ 2,577 |
Weighted average shares of common stock outstanding used in computing net income (loss) per share, basic (in shares) | 13,932 | 13,851 | 13,709 | 13,587 | 13,744 | 13,973 | 13,935 | 13,840 | 13,771 | 13,873 | 13,225 |
Dilutive effect of incremental shares and share equivalents (in shares) | 855 | 528 | |||||||||
Weighted average shares of common stock outstanding used in computing net income (loss) per share, diluted (in shares) | 13,932 | 13,851 | 13,709 | 13,587 | 14,569 | 14,767 | 14,629 | 13,840 | 13,771 | 14,728 | 13,753 |
Net income (loss) per share—basic (in dollars per share) | $ (1.89) | $ (0.06) | $ (0.11) | $ (0.15) | $ 1.66 | $ 0.44 | $ 0.14 | $ (0.07) | $ (2.23) | $ 2.16 | $ 0.19 |
Net income (loss) per share—diluted (in dollars per share) | $ (1.89) | $ (0.06) | $ (0.11) | $ (0.15) | $ 1.57 | $ 0.42 | $ 0.13 | $ (0.07) | $ (2.23) | $ 2.04 | $ 0.19 |
Note 8 - Net Loss Per Share - A
Note 8 - Net Loss Per Share - Antidilutive Securities Excluded From Computation of Earnings Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Antidilutive Securities (in shares) | 1,272 | 51 | 244 |
Employee Stock Option [Member] | |||
Antidilutive Securities (in shares) | 664 | 42 | 220 |
Restricted Stock Units (RSUs) [Member] | |||
Antidilutive Securities (in shares) | 432 | 9 | 24 |
ESPP [Member] | |||
Antidilutive Securities (in shares) | 133 | ||
Performance Shares [Member] | |||
Antidilutive Securities (in shares) | 43 |
Note 9 - Defined Contribution_2
Note 9 - Defined Contribution Plan (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 0.4 | $ 0.3 | $ 0.2 |
Maximum [Member] | |||
Defined Contribution Plan Maximum Percentage of Employee Voluntary Contribution | 100.00% |
Note 10 - Segment Information_3
Note 10 - Segment Information and Revenue by Geography and Products (Details Textual) | 12 Months Ended |
Dec. 31, 2018 | |
Number of Operating Segments | 1 |
Note 10 - Segment Information_4
Note 10 - Segment Information and Revenue by Geography and Products - Revenue by Geographic Region (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue from Contract with Customer, Including Assessed Tax | $ 162,720 | $ 151,493 | $ 118,056 |
Products [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 132,594 | 125,883 | 92,721 |
Hand Piece Refills [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 4,162 | 2,435 | 2,498 |
Skincare [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 5,778 | 4,342 | 3,809 |
Total Product Revenue [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 142,535 | 132,660 | 99,028 |
Service [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 20,185 | 18,833 | 19,028 |
UNITED STATES | |||
Revenue from Contract with Customer, Including Assessed Tax | 101,862 | 94,581 | 65,513 |
JAPAN | |||
Revenue from Contract with Customer, Including Assessed Tax | 17,819 | 17,264 | 14,727 |
Asia, Excluding Japan [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 15,467 | 13,719 | 13,445 |
Europe [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 8,875 | 8,317 | 7,539 |
Rest of World [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | $ 18,696 | $ 17,612 | $ 16,832 |
Note 11 - Commitments and Con_3
Note 11 - Commitments and Contingencies (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Leases, Rent Expense, Total | $ 2,900,000 | $ 1,500,000 | $ 1,600,000 |
Contractual Obligation, Due in Next Fiscal Year | 1,700,000 | ||
Contractual Obligation, Due in Second Year | 7,200,000 | ||
Estimated Litigation Liability | $ 171,000 | $ 91,000 |
Note 11 - Commitments and Con_4
Note 11 - Commitments and Contingencies - Minimum Lease and Other Leased Assets Under Long-term Non-cancellable Operating Leases (Details) $ in Thousands | Dec. 31, 2018USD ($) |
2019 | $ 3,011 |
2020 | 2,939 |
2021 | 2,564 |
2022 | 2,495 |
2023 and thereafter | 214 |
Future minimum rental payments | $ 11,223 |
Note 11 - Commitments and Con_5
Note 11 - Commitments and Contingencies - Minimum Lease Payments for Leased Vehicles Under Long-term Non-cancellable Capital Leases (Details) $ in Thousands | Dec. 31, 2018USD ($) |
2019 | $ 576 |
2020 | 287 |
2021 | 152 |
Future minimum lease payments | $ 1,015 |
Note 12 - Debt (Details Textual
Note 12 - Debt (Details Textual) - Wells Fargo [Member] $ in Thousands | Nov. 02, 2018USD ($) | May 30, 2018USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) |
Revolving Line of Credit [Member] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 25,000 | ||||||
Long-term Line of Credit, Total | $ 0 | ||||||
Leverage Ratio, Maximum | 2.5 | ||||||
Debt Instrument, Minimum Adjusted EBITDA | $ 10,000 | ||||||
Revised Revolving Line of Credit [Member] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 15,000 | ||||||
Leverage Ratio, Maximum | 2 | ||||||
Debt Instrument, Minimum Adjusted EBITDA | $ 2,500 | $ 1,000 | |||||
Line of Credit Facility, Additional Requestable Maximum Borrowing Capacity | $ 10,000 | ||||||
Debt Instrument, Debt Covenant, Minimum Unrestricted Cash Balance | $ 15,000 | ||||||
Revised Revolving Line of Credit [Member] | Scenario, Forecast [Member] | |||||||
Debt Instrument, Minimum Adjusted EBITDA | $ 10,000 | $ 6,500 | $ 4,000 |
Note 13 - Related Parties (Deta
Note 13 - Related Parties (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 265,124 | 412,208 | 480,191 |
Director [Member] | Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 6,500 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Fair Value | $ 87,100 | ||
Director [Member] | Restricted Stock Units (RSUs) [Member] | Vesting Commencing on August 15, 2016 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 33.33% | ||
Director [Member] | Product Development, Clinical Sales and Marketing Support Services [Member] | |||
Related Party Transaction, Amounts of Transaction | $ 63,000 | $ 196,000 | |
T3 Advisors [Member] | Real Estate Brokerage Services [Member] | |||
Related Party Transaction, Amounts of Transaction | $ 192,000 | $ 38,000 |
Note 14 - Correction of Prior_2
Note 14 - Correction of Prior Period Immaterial Error (Details Textual) - USD ($) | Jan. 01, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Retained Earnings (Accumulated Deficit), Ending Balance | $ (24,010,000) | $ 2,947,000 | |
Accounting Standards Update 2014-09 [Member] | |||
Cumulative Effect on Retained Earnings, before Tax | $ 5,000,000 | ||
Cumulative Effect on Retained Earnings, Tax | 1,200,000 | ||
Deferred Tax Liabilities, Net, Noncurrent | 1,200,000 | ||
Accounting Standards Update 2014-09 [Member] | Errors Related to Not Recording Tax Effect of ASC 606 [Member] | |||
Deferred Tax Liabilities, Net, Noncurrent | 1,200,000 | ||
Retained Earnings (Accumulated Deficit), Ending Balance | $ (1,200,000) |
Note 15 - Subsequent Events (De
Note 15 - Subsequent Events (Details Textual) $ in Millions | Jan. 09, 2019USD ($) |
Subsequent Event [Member] | Chief Executive Officer [Member] | |
Payments for Separation Agreement | $ 0.6 |
Supplementary Financial Data _3
Supplementary Financial Data (Unaudited) - Supplementary Financial Data (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Net revenue | $ 45,469 | $ 40,573 | $ 42,553 | $ 34,125 | $ 47,632 | $ 38,173 | $ 36,389 | $ 29,299 | ||||
Cost of revenue | 26,683 | 18,688 | 20,176 | 16,791 | 20,299 | 15,963 | 15,343 | 13,778 | ||||
Gross profit | 18,786 | 21,885 | 22,377 | 17,334 | 27,333 | 22,210 | 21,046 | 15,521 | $ 80,382 | $ 86,110 | $ 68,135 | |
Sales and marketing | 15,318 | 14,479 | 15,535 | 13,088 | 15,362 | 13,148 | 12,787 | 10,773 | 58,420 | 52,070 | 41,563 | |
Research and development | 3,464 | 3,244 | 4,095 | 3,556 | 3,481 | 3,467 | 2,981 | 2,945 | 14,359 | 12,874 | 11,232 | |
General and administrative | 5,494 | 5,160 | 4,902 | 5,439 | 3,947 | 3,379 | 3,548 | 3,216 | 20,995 | 14,090 | 12,943 | |
Lease termination income | (4,000) | (4,000) | ||||||||||
Total operating expenses | 24,276 | 22,883 | 24,532 | 22,083 | 22,790 | 15,994 | 19,316 | 16,934 | 93,774 | 75,034 | 65,738 | |
Income (loss) from operations | (5,490) | (998) | (2,155) | (4,749) | 4,543 | 6,216 | 1,730 | (1,413) | (13,392) | 11,076 | 2,397 | |
Interest and other income, net | (44) | (49) | (129) | 98 | 138 | 197 | 276 | 273 | (123) | [1] | 884 | 323 |
Income (loss) before income taxes | (5,534) | (1,047) | (2,284) | (4,651) | 4,681 | 6,413 | 2,006 | (1,140) | (13,515) | 11,960 | 2,720 | |
Income tax provision | 20,760 | (174) | (712) | (2,619) | (18,199) | 225 | 59 | (118) | 17,255 | (18,033) | 143 | |
Net income (loss) | $ (26,293) | $ (873) | $ (1,572) | $ (2,032) | $ 22,880 | $ 6,188 | $ 1,947 | $ (1,022) | $ (30,770) | $ 29,993 | $ 2,577 | |
Net income (loss) per share—basic (in dollars per share) | $ (1.89) | $ (0.06) | $ (0.11) | $ (0.15) | $ 1.66 | $ 0.44 | $ 0.14 | $ (0.07) | $ (2.23) | $ 2.16 | $ 0.19 | |
Net income (loss) per share—diluted (in dollars per share) | $ (1.89) | $ (0.06) | $ (0.11) | $ (0.15) | $ 1.57 | $ 0.42 | $ 0.13 | $ (0.07) | $ (2.23) | $ 2.04 | $ 0.19 | |
Basic (in shares) | 13,932 | 13,851 | 13,709 | 13,587 | 13,744 | 13,973 | 13,935 | 13,840 | 13,771 | 13,873 | 13,225 | |
Diluted (in shares) | 13,932 | 13,851 | 13,709 | 13,587 | 14,569 | 14,767 | 14,629 | 13,840 | 13,771 | 14,728 | 13,753 | |
[1] | Included in interest and other income, net, is the estimated interest expense for advance payment related to service contracts under the new revenue standard. |
Schedule II - Valuation and Q_3
Schedule II - Valuation and Qualifying Accounts - Summary of the Deferred Tax Assets Valuation Allowance and Allowance for Doubtful Accounts Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | 21 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Oct. 01, 2019 | |
SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset [Member] | ||||
Balance at beginning of year | $ 7,242 | $ 31,751 | $ 27,616 | $ 7,242 |
Additions | 617 | 6,755 | 22,770 | |
Deductions | 25,126 | 2,620 | 2,147 | |
Balance at end of year | 7,242 | 31,751 | 27,865 | |
SEC Schedule, 12-09, Allowance, Loan and Lease Loss [Member] | ||||
Balance at beginning of year | 9 | 21 | 4 | $ 9 |
Additions | 1,880 | 14 | 21 | |
Deductions | 632 | 26 | 4 | |
Balance at end of year | $ 1,257 | $ 9 | $ 21 |