Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 28, 2019 | Jul. 26, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 28, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | STAAR SURGICAL CO | |
Entity Central Index Key | 0000718937 | |
Current Fiscal Year End Date | --01-03 | |
Entity Filer Category | Large Accelerated Filer | |
Trading Symbol | STAA | |
Entity Common Stock, Shares Outstanding | 44,542,965 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 0-11634 | |
Entity Tax Identification Number | 953797439 | |
Entity Address, Address Line One | 25651 Atlantic Ocean Drive | |
Entity Address, City or Town | Lake Forest | |
Entity Address, State or Province | California | |
Entity Address, Postal Zip Code | 92630 | |
City Area Code | 626 | |
Local Phone Number | 303-7902 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 28, 2019 | Dec. 28, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 103,251 | $ 103,877 |
Accounts receivable trade, net of allowance of doubtful accounts of $162 and $550, respectively | 32,962 | 25,946 |
Inventories, net | 16,328 | 16,704 |
Prepayments, deposits and other current assets | 6,367 | 5,045 |
Total current assets | 158,908 | 151,572 |
Property, plant and equipment, net | 13,382 | 11,451 |
Finance lease right-of-use assets, net | 2,338 | |
Operating lease right-of-use assets, net | 7,219 | |
Intangible assets, net | 261 | 243 |
Goodwill | 1,786 | 1,786 |
Deferred income taxes | 1,355 | 1,278 |
Other assets | 713 | 1,009 |
Total assets | 185,962 | 167,339 |
Current liabilities: | ||
Line of credit | 2,854 | 3,780 |
Accounts payable | 8,097 | 6,524 |
Obligations under finance leases | 960 | 1,098 |
Obligations under operating leases | 2,766 | |
Allowance for sales returns | 3,263 | 2,895 |
Other current liabilities | 10,771 | 13,431 |
Total current liabilities | 28,711 | 27,728 |
Obligations under finance leases | 580 | 459 |
Obligations under operating leases | 4,580 | |
Deferred income taxes | 1,406 | 1,022 |
Asset retirement obligations | 212 | 206 |
Deferred rent | 188 | |
Pension liability | 6,138 | 5,310 |
Total liabilities | 41,627 | 34,913 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $0.01 par value; 60,000 shares authorized: 44,534 and 44,195 shares issued and outstanding at June 28, 2019 and December 28, 2018, respectively | 445 | 442 |
Additional paid-in capital | 296,063 | 289,584 |
Accumulated other comprehensive loss | (1,602) | (1,320) |
Accumulated deficit | (150,571) | (156,280) |
Total stockholders’ equity | 144,335 | 132,426 |
Total liabilities and stockholders’ equity | $ 185,962 | $ 167,339 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 28, 2019 | Dec. 28, 2018 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable, current | $ 162 | $ 550 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Common stock, shares issued | 44,534,000 | 44,195,000 |
Common stock, shares outstanding | 44,534,000 | 44,195,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 28, 2019 | Jun. 29, 2018 | |
Income Statement [Abstract] | ||||
Net sales | $ 39,664 | $ 33,905 | $ 72,247 | $ 60,998 |
Cost of sales | 9,765 | 8,678 | 18,168 | 16,340 |
Gross profit | 29,899 | 25,227 | 54,079 | 44,658 |
Selling, general and administrative expenses: | ||||
General and administrative | 7,508 | 6,196 | 14,345 | 11,967 |
Marketing and selling | 11,682 | 10,659 | 21,825 | 18,113 |
Research and development | 6,098 | 5,346 | 11,733 | 10,753 |
Total selling, general and administrative expenses | 25,288 | 22,201 | 47,903 | 40,833 |
Operating income | 4,611 | 3,026 | 6,176 | 3,825 |
Other income (expense), net: | ||||
Interest income (expense), net | 259 | (24) | 530 | (36) |
Gain (loss) on foreign currency transactions | 11 | (520) | (237) | (597) |
Royalty income | 163 | 149 | 334 | 306 |
Other income, net | 1 | 4 | 98 | 21 |
Total other income (expense), net | 434 | (391) | 725 | (306) |
Income before income taxes | 5,045 | 2,635 | 6,901 | 3,519 |
Provision for income taxes | 1,131 | 805 | 1,620 | 1,106 |
Net income | $ 3,914 | $ 1,830 | $ 5,281 | $ 2,413 |
Net income per share: | ||||
Basic | $ 0.09 | $ 0.04 | $ 0.12 | $ 0.06 |
Diluted | $ 0.08 | $ 0.04 | $ 0.11 | $ 0.06 |
Weighted average shares outstanding: | ||||
Basic | 44,479 | 41,723 | 44,357 | 41,568 |
Diluted | 46,733 | 43,999 | 46,842 | 43,654 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 28, 2019 | Jun. 29, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 3,914 | $ 1,830 | $ 5,281 | $ 2,413 |
Defined benefit plans: | ||||
Net change in plan assets | (614) | (21) | (640) | (30) |
Reclassification into other income, net | 28 | 26 | 54 | 51 |
Foreign currency translation gain (loss) | 382 | (521) | 339 | 207 |
Tax effect | (55) | 156 | (35) | (67) |
Other comprehensive income (loss), net of tax | (259) | (360) | (282) | 161 |
Comprehensive income | $ 3,655 | $ 1,470 | $ 4,999 | $ 2,574 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Balance at Dec. 29, 2017 | $ 42,936 | $ 414 | $ 204,920 | $ (1,150) | $ (161,248) |
Balance (in shares) at Dec. 29, 2017 | 41,383 | ||||
Net income | 2,413 | 2,413 | |||
Other comprehensive income (loss) | 161 | 161 | |||
Common stock issued upon exercise of options | 2,405 | $ 3 | 2,402 | ||
Common stock issued upon exercise of options (in shares) | 306 | ||||
Stock-based compensation | $ 3,166 | 3,166 | |||
Unvested restricted stock (in shares) | (11) | 11 | |||
Vested restricted stock | $ 2 | $ 2 | |||
Vested restricted stock (in shares) | 177 | ||||
Balance at Jun. 29, 2018 | 51,083 | $ 419 | 210,488 | (989) | (158,835) |
Balance (in shares) at Jun. 29, 2018 | 41,877 | ||||
Balance at Mar. 30, 2018 | 45,917 | $ 416 | 206,795 | (629) | (160,665) |
Balance (in shares) at Mar. 30, 2018 | 41,592 | ||||
Net income | 1,830 | 1,830 | |||
Other comprehensive income (loss) | (360) | (360) | |||
Common stock issued upon exercise of options | 1,952 | $ 2 | 1,950 | ||
Common stock issued upon exercise of options (in shares) | 249 | ||||
Stock-based compensation | $ 1,743 | 1,743 | |||
Unvested restricted stock (in shares) | (11) | 11 | |||
Vested restricted stock | $ 1 | $ 1 | |||
Vested restricted stock (in shares) | 25 | ||||
Balance at Jun. 29, 2018 | 51,083 | $ 419 | 210,488 | (989) | (158,835) |
Balance (in shares) at Jun. 29, 2018 | 41,877 | ||||
Balance at Dec. 28, 2018 | 132,426 | $ 442 | 289,584 | (1,320) | (156,280) |
Balance (in shares) at Dec. 28, 2018 | 44,195 | ||||
Net income | 5,281 | 5,281 | |||
Adoption of ASC/ ASU | Accounting Standards Update 2016-02 | 113 | 113 | |||
Adoption of ASC/ ASU | Accounting Standards Update 2018-07 | (315) | 315 | |||
Other comprehensive income (loss) | (282) | (282) | |||
Common stock issued upon exercise of options | $ 1,110 | $ 1 | 1,109 | ||
Common stock issued upon exercise of options (in shares) | 126 | 126 | |||
Stock-based compensation | $ 5,685 | 5,685 | |||
Unvested restricted stock (in shares) | (11) | 11 | |||
Vested restricted stock | $ 2 | $ 2 | |||
Vested restricted stock (in shares) | 202 | ||||
Balance at Jun. 28, 2019 | 144,335 | $ 445 | 296,063 | (1,602) | (150,571) |
Balance (in shares) at Jun. 28, 2019 | 44,534 | ||||
Balance at Mar. 29, 2019 | 137,338 | $ 444 | 292,722 | (1,343) | (154,485) |
Balance (in shares) at Mar. 29, 2019 | 44,447 | ||||
Net income | 3,914 | 3,914 | |||
Other comprehensive income (loss) | (259) | (259) | |||
Common stock issued upon exercise of options | 487 | $ 1 | 486 | ||
Common stock issued upon exercise of options (in shares) | 52 | ||||
Stock-based compensation | $ 2,855 | 2,855 | |||
Unvested restricted stock (in shares) | (10) | 11 | |||
Vested restricted stock (in shares) | 24 | ||||
Balance at Jun. 28, 2019 | $ 144,335 | $ 445 | $ 296,063 | $ (1,602) | $ (150,571) |
Balance (in shares) at Jun. 28, 2019 | 44,534 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 28, 2019 | Jun. 29, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 5,281 | $ 2,413 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of property, plant, and equipment | 1,983 | 1,168 |
Amortization of intangibles | 17 | 17 |
Deferred income taxes | 393 | 358 |
Change in net pension liability | 203 | 159 |
Loss on disposal of property and equipment | 6 | |
Stock-based compensation expense | 5,220 | 2,899 |
Provision for sales returns and bad debts | (32) | 644 |
Inventory provision | 787 | 753 |
Changes in working capital: | ||
Accounts receivable | (6,533) | (6,390) |
Inventories | 106 | (1,536) |
Prepayments, deposits, and other current assets | (1,154) | (889) |
Accounts payable | 563 | 956 |
Other current liabilities | (2,626) | 1,748 |
Net cash provided by operating activities | 4,208 | 2,306 |
Cash flows from investing activities: | ||
Acquisition of property and equipment | (4,601) | (1,269) |
Acquisition of patents and licenses | (30) | |
Net cash used in investing activities | (4,631) | (1,269) |
Cash flows from financing activities: | ||
Repayment of finance lease obligations | (681) | (881) |
Repayment on line of credit | (999) | |
Proceeds from the exercise of stock options | 1,110 | 2,405 |
Proceeds from vested restricted stock | 2 | 2 |
Net cash provided by (used in) financing activities | (568) | 1,526 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 243 | 163 |
Increase (decrease) in cash, cash equivalents and restricted cash | (748) | 2,726 |
Cash, cash equivalents and restricted cash, at beginning of year | 103,999 | 18,641 |
Cash, cash equivalents and restricted cash, at end of year | $ 103,251 | $ 21,367 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 28, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Note 1 — Basis of Presentation and Significant Accounting Policies The Condensed Consolidated Financial Statements of the Company present the financial position, results of operations, and cash flows of STAAR Surgical Company and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities Exchange Commission. In accordance with those rules and regulations certain information and footnote disclosures normally included in Comprehensive Financial Statements have been condensed or omitted pursuant to such rules and regulations. The Consolidated Balance Sheet as of December 28, 2018 was derived from the audited financial statements at that date, but does not include all the information and footnotes required by GAAP. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 28, 2018. The Condensed Consolidated Financial Statements for the three and six months ended June 28, 2019 and June 29, 2018, in the opinion of management, include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the Company’s financial condition and results of operations. The results of operations for the three and six months ended June 28, 2019 and June 29, 2018, are not necessarily indicative of the results to be expected for any other interim period or for the entire year. Each of the Company’s fiscal reporting periods ends on the Friday nearest to the quarter ending date and generally consists of 13 weeks. Unless the context indicates otherwise “we,” “us,” the “Company,” and “STAAR” refer to STAAR Surgical Company and its consolidated subsidiaries. Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Condensed Consolidated Statements of Cash Flows (in 000’s): December 28, 2018 June 29, 2018 Cash and cash equivalents $ 103,877 $ 21,246 Restricted cash (1) 122 121 Total cash, cash equivalents and restricted cash $ 103,999 $ 21,367 (1) The Company had restricted cash set aside as collateral for a standby letter of credit required by the California Department of Public Health for unforeseen future regulatory costs related to the decommissioning of certain manufacturing equipment. During the three months ended June 28, 2019, the Company was no longer required to set aside collateral for this standby letter of credit. Lease Accounting On December 29, 2018 (beginning of fiscal year 2019), the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2016-02, “Leases (Topic 842)” and its subsequent amendments affecting the Company: (i) ASU 2018-10, “Codification Improvements to Topic 842, Leases,” and (ii) ASU 2018-11, “Leases (Topic 842): Targeted improvements,” using the modified retrospective method. Upon adoption of ASU 2016-02, the Company recognized a cumulative adjustment of $113,000 which decreased the accumulated deficit and recognized right-of-use (“ROU”) assets and lease liabilities for operating leases, whereby the Company’s accounting finance leases remained substantially unchanged. The Company recognizes ROU assets and lease liabilities for leases with terms greater than twelve months in the Condensed Consolidated Balance Sheets. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the Condensed Consolidated Statement of Income. Note 1 — Basis of Presentation and Significant Accounting Policies (Continued) Lease Accounting (Continued) A contract contains a lease if the contract conveys the right to control an identified asset for a period of time in exchange for consideration. An asset is either explicitly identified or implicitly identified and must be physically distinct. In addition, the Company must have both the right to obtain substantially all of the economic benefits from use of the identified asset and has the right to direct the use of the identified asset. Certain leases may have non-lease components such as common area maintenance expense for building leases and maintenance expenses for automobile leases. In general, the Company separates common area maintenance expense component from the value of the ROU asset and lease liability when evaluating rental properties under ASU 2016-02, whereas, the Company includes the maintenance and service components in the value of the ROU asset and lease liability while evaluating automobile leases under ASU 2016-02. When determining whether a lease is a finance lease or an operating lease, ASU 2016-02 does not specifically define criteria to determine “major part of remaining economic life of the underlying asset” and “substantially all of the fair value of the underlying asset.” For lease classification determination, the Company continues to use (i) greater to or equal to 75% to determine whether the lease term is a major part of the remaining economic life of the underlying asset and (ii) greater to or equal to 90% to determine whether the present value of the sum of lease payments is substantially all of the fair value of the underlying asset. The Company uses either the rate implicit in the lease or its incremental borrowing rate as the discount rate in lease accounting. When adopting ASU 2016-02, the Company did not reassess any expired or existing contracts, reassess the lease classification for any expired or existing leases and reassess initial direct costs for exiting leases. The Company also elected not to capitalize leases that have terms of twelve months or less. The Company reviews ROU assets, for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. The Company measures recoverability of these assets by comparing the carrying value of such assets to the estimated undiscounted future cash flows the assets are expected to generate. When the estimated undiscounted future cash flows are less than their carrying amount, an impairment loss is recognized equal to the difference between the assets’ fair value and their carrying value. Recently Adopted Accounting Pronouncements and Recent Accounting Pronouncements Not Yet Adopted On December 29, 2018 (beginning of fiscal year 2019), the Company adopted ASU 2018-02, “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” provides an option to reclassify stranded tax effects within Accumulated Other Comprehensive Income to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recorded. The adoption of ASU 2018‑02 did not have material impact on the Condensed Consolidated Financial Statements. On December 29, 2018 (beginning of fiscal year 2019), the Company adopted ASU 2018-07, “Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting,” aligns the accounting for share-based payments to nonemployees similar to employees. Upon the adoption of ASU 2018-07, the Company recognized a cumulative adjustment of $315,000 which decreased the accumulated deficit. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement,” which modifies certain disclosures requirements for reporting fair value measurements. This is effective for fiscal years ending after December 15, 2019. Early adoption is permitted. The Company will adopt this standard as of January 4, 2020 (beginning of fiscal year 2020) and is currently evaluating the disclosure requirements and its effect on the Condensed Consolidated Financial Statements. Note 1 — Basis of Presentation and Significant Accounting Policies (Continued) Recently Adopted Accounting Pronouncements and Recent Accounting Pronouncements Not Yet Adopted (Continued) In August 2018, the FASB issued ASU 2018-14, “Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20); Disclosure Framework – Changes in the Disclosure Requirement for Defined Benefit Plans,” which modifies disclosure requirements for employers that sponsor defined benefit pension or other post retirement plans. This is effective for fiscal years ending after December 15, 2020. Early adoption is permitted. The Company will adopt this standard as of January 2, 2021 (beginning of fiscal year 2021) and is currently evaluating the disclosure requirements and its effect on the Condensed Consolidated Financial Statements. |
Inventories
Inventories | 6 Months Ended |
Jun. 28, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 2 — Inventories Inventories, net are stated at the lower of cost and net realizable value, determined on a first-in, first-out basis and consisted of the following (in thousands): June 28, 2019 December 28, 2018 Raw materials and purchased parts $ 3,195 $ 2,678 Work in process 2,907 2,195 Finished goods 11,621 13,214 Total inventories, gross 17,723 18,087 Less inventory reserves 1,395 1,383 Total inventories, net $ 16,328 $ 16,704 |
Prepayments, Deposits, and Othe
Prepayments, Deposits, and Other Current Assets | 6 Months Ended |
Jun. 28, 2019 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Prepayments, Deposits, and Other Current Assets | Note 3 — Prepayments, Deposits, and Other Current Assets Prepayments, deposits, and other current assets consisted of the following (in thousands): June 28, 2019 December 28, 2018 Prepayments and deposits $ 2,953 $ 1,707 Prepaid insurance 928 1,271 Consumption tax receivable 284 912 Value added tax (VAT) receivable 1,078 565 Income tax receivable 295 285 BVG Prepayment 372 16 Other (1) 457 289 Total prepayments, deposits and other current assets $ 6,367 $ 5,045 (1) |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 28, 2019 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | Note 4 — Property, Plant and Equipment Property, plant and equipment, net consisted of the following (in thousands): June 28, 2019 December 28, 2018 Machinery and equipment $ 21,266 $ 19,000 Furniture and fixtures 9,880 9,860 Leasehold improvements 10,095 10,045 Total property, plant and equipment, gross 41,241 38,905 Less accumulated depreciation 27,859 27,454 Total property, plant and equipment, net $ 13,382 $ 11,451 |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 28, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 5 –Intangible Assets Intangible assets, net consisted of the following (in thousands): June 28, 2019 December 28, 2018 Long-lived amortized intangible assets Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Patents and licenses $ 9,302 $ (9,041 ) $ 261 $ 9,257 $ (9,014 ) $ 243 |
Other Current Liabilities
Other Current Liabilities | 6 Months Ended |
Jun. 28, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Note 6 – Other Current Liabilities Other current liabilities consisted of the following (in thousands): June 28, 2019 December 28, 2018 Accrued salaries and wages $ 3,907 $ 3,172 Accrued insurance 283 1,061 Accrued consumption tax 488 995 Accrued bonuses 1,784 5,113 Income taxes payable 1,914 1,105 Other (1) 2,395 1,985 Total other current liabilities $ 10,771 $ 13,431 (1) No individual item in “Other” exceeds 5% of the other current liabilities. |
Lines of Credit
Lines of Credit | 6 Months Ended |
Jun. 28, 2019 | |
Debt Disclosure [Abstract] | |
Lines of Credit | Note 7 – Lines of Credit Since 1998, the Company’s wholly owned Japanese subsidiary, STAAR Japan, has had an agreement with Mizuho Bank which provides for borrowings of up to 500,000,000 Yen, at an interest rate equal to the uncollateralized overnight call rate (approximately 0.06% as of June 28, 2019) plus a 0.50% spread, and may be renewed quarterly (the current line expires on August 21, 2019). The credit facility is not collateralized. The Company had 307,500,000 Yen and 417,500,000 Yen outstanding on the line of credit as of June 28, 2019 and December 28, 2018, respectively (approximately $2,854,000 and $3,780,000 based on the foreign exchange rates on June 28, 2019 and December 28, 2018, respectively), which approximates fair value due to the short-term maturity and market interest rates of the line of credit. In case of default, the interest rate will be increased to 14% per annum. There was 192,500,000 Yen and 82,500,000 Yen available for borrowing as of June 28, 2019 and December 28, 2018, respectively (approximately $1,786,000 and $747,000 based on the foreign exchange rate on June 28, 2019 and December 28, 2018, respectively). At maturity on August 21, 2019, the Company expects to renew this line of credit for an additional three months, with similar terms. In September 2013, the Company’s wholly owned Swiss subsidiary, STAAR Surgical AG, entered into a framework agreement for loans (“framework agreement”) with Credit Suisse (the “Bank”). The framework agreement provides for borrowings of up to 1,000,000 CHF (Swiss Francs) (approximately $1,000,000 at the rate of exchange on June 28, 2019 and December 28, 2018), to be used for working capital purposes. Accrued interest and 0.25% commissions on average outstanding borrowings is payable quarterly and the interest rate will be determined by the Bank based on the then prevailing market conditions at the time of borrowing. The framework agreement is automatically renewed on an annual basis based on the same terms assuming there is no default. The framework agreement may be terminated by either party at any time in accordance with its general terms and conditions. The framework agreement is not collateralized and contains certain conditions such as providing the Bank with audited financial statements annually and notice of significant events or conditions, as defined in the framework agreement. The Bank may also declare all amounts outstanding to be immediately due and payable upon a change of control or a “material qualification” in STAAR Surgical independent auditors’ report, as defined. There were no borrowings outstanding as of June 28, 2019 and December 28, 2018. The Company is in compliance with covenants of its credit facilities and lines of credit as of June 28, 2019. During the six months ended June 28, 2019, the Company converted the lease line of credit schedule 011 with Farnam Street Financial, Inc. into a finance lease liability of approximately $500,000. |
Leases
Leases | 6 Months Ended |
Jun. 28, 2019 | |
Leases [Abstract] | |
Leases | Note 8 – Leases Finance Leases The Company entered into finance leases primarily related to purchases of equipment used for manufacturing or computer-related equipment. These finance leases are two to five years in length and have fixed payment amounts for the term of the contract and have options to purchase the assets at the end of the lease term. Supplemental balance sheet information related to finance leases consisted of the following (dollars in thousands): June 28, 2019 Machinery and equipment $ 2,158 Furniture and fixtures 1,042 Leasehold improvements 27 Finance lease right-of-use assets, gross 3,227 Less accumulated depreciation 889 Finance lease right-of-use assets, net $ 2,338 Total finance lease liability $ 1,540 Weighted-average remaining lease term (in years) 1.4 Weighted-average discount rate 6.47 % Supplemental cash flow information related to finance leases consisted of the following (dollars in thousands): Three Months Ended Six Months Ended June 28, 2019 June 28, 2019 Amortization of finance lease right-of-use asset $ 145 $ 306 Interest on finance lease liabilities 22 41 Cash paid for amounts included in the measurement of finance lease liabilities: Operating cash flows 22 41 Financing cash flows 316 681 Right-of-use assets obtained in exchange for new finance lease liabilities 37 679 Operating Leases The Company entered into operating leases primarily related to real property (office, manufacturing and warehouse facilities), automobiles and copiers. These operating leases are two to five years in length with options to extend. The Company did not include any lease extensions in the initial valuation unless the Company was reasonably certain to extend the lease. Depending on the lease, there are those with fixed payment amounts for the entire length of the contract or payments which increase periodically as noted in the contract or increased at an inflation rate indicator. For operating leases that increase using an inflation rate indicator, the Company used the inflation rate at the time the lease was entered into for the length of the lease term. Supplemental balance sheet information related to operating leases consisted of the following (dollars in thousands): Note 8 – Leases (Continued) Operating Leases (Continued) June 28, 2019 Machinery and equipment $ 757 Furniture and fixtures 462 Real property 10,552 Operating lease right-of-use assets, gross 11,771 Less accumulated depreciation 4,552 Operating lease right-of-use assets, net $ 7,219 Total operating lease liability $ 7,346 Weighted-average remaining lease term (in years) 2.6 Weighted-average discount rate 1.84 % Supplemental cash flow information related to operating leases was as follows (dollars in thousands): Three Months Ended Six Months Ended June 28, 2019 June 28, 2019 Operating lease cost $ 683 $ 1,294 Cash paid for amounts included in the measurement of operating lease liabilities: Operating cash flows 691 1,292 Right-of-use assets obtained in exchange for new operating lease liabilities 1,193 2,657 Future Minimum Lease Commitments Estimated future minimum lease payments under operating and finance leases having initial or remaining non-cancelable lease terms more than one year as of June 28, 2019 and December 28, 2018 are as follows (in thousands): As of June 28, 2019 12 Months Ended Operating Leases Finance Leases June 2020 $ 2,916 $ 1,009 June 2021 2,201 506 June 2022 1,115 78 June 2023 942 8 June 2024 440 6 Thereafter 2 — Total minimum lease payments, including interest $ 7,616 $ 1,607 Less amounts representing interest 270 67 Total minimum lease payments $ 7,346 $ 1,540 As of December 28, 2018 12 Months Ended Operating Leases Finance Leases December 2019 $ 2,606 $ 1,153 December 2020 2,202 332 December 2021 980 143 December 2022 507 4 December 2023 202 — Thereafter 12 — Total minimum lease payments, including interest 6,509 1,632 Less amounts representing interest — 75 Total minimum lease payments $ 6,509 $ 1,557 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9 — The Company recorded an income tax provision as follows (in thousands): Three Months Ended Six Months Ended June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Provision for income taxes $ 1,131 $ 805 $ 1,620 $ 1,106 The income tax provision is primarily due to pre-tax income generated in certain foreign jurisdictions. The Company’s quarterly provision for income taxes is determined by estimating an annual effective tax rate. This estimate may fluctuate throughout the year as new information becomes available affecting its underlying assumptions. There are no unrecognized tax benefits related to uncertain tax positions taken by the Company. All earnings from the Company’s subsidiaries are not considered to be permanently reinvested. Accordingly, the Company provides withholding and U.S. taxes on all unremitted foreign earnings. The 2017 Tax Act subjects a U.S. shareholder to tax on Global Intangible Low Tax Income (“GILTI”) earned by certain foreign subsidiaries. In general, GILTI is the excess of a U.S. shareholder’s total net foreign income over a deemed return on tangible assets. The provision further allows a deduction of 50 percent of GILTI, however this deduction is limited to the Company’s pre-GILTI U.S. income. The Company has elected to account for GILTI as a current period expense when incurred. For the six months ended June 28, 2019, the Company included GILTI of $7,699,000 in U.S. gross income, which was fully offset with net operating loss carryforwards. The Company was not able to utilize the deduction of 50 percent of GILTI, as this deduction is limited to the Company’s pre-GILTI U.S. tax income. As of June 28, 2019, the Company established a full valuation allowance in the U.S. for all periods presented due to the significant uncertainty of realizing future tax benefits from its net operating loss carryforwards and other deferred tax assets, with the exception of the refundable alternative minimum tax credit of $273,000. |
Defined Benefit Pension Plans
Defined Benefit Pension Plans | 6 Months Ended |
Jun. 28, 2019 | |
Defined Benefit Pension Plans And Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure | Note 10 – Defined Benefit Pension Plans The Company has defined benefit plans covering employees of its Switzerland and Japan operations. The following table summarizes the components of net periodic pension cost recorded for the Company’s defined benefit pension plans (in thousands): Three Months Ended Six Months Ended June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Service cost (1) $ 248 $ 139 $ 480 $ 277 Interest cost (2) 20 15 40 29 Expected return on plan assets (2) (34 ) (28 ) (67 ) (54 ) Net amortization of transitional obligation (2),(3) — 2 — 5 Prior service credit (2),(3) (5 ) (5 ) (11 ) (11 ) Actuarial loss recognized in current period (2),(3) 33 29 65 57 Net periodic pension cost $ 262 $ 152 $ 507 $ 303 (1) Recognized in selling general and administrative expenses on the Condensed Consolidated Statements of Income. ( 2 ) Recognized in other income (expense), net on the Condensed Consolidated Statements of Income. (3) Amounts reclassified from accumulated other comprehensive income (loss). The Company currently is not required to and does not make contributions to its Japan pension plan. The Company’s contributions to its Swiss pension plan are as follows (in thousands): Three Months Ended Six Months Ended June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Employer contribution $ 137 $ 79 $ 263 $ 145 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 28, 2019 | |
Stockholders Equity Note [Abstract] | |
Stockholders' Equity | Note 11 — Stockholders’ Equity Stock-Based Compensation The cost that has been charged against income for stock-based compensation is set forth below (in thousands): Three Months Ended Six Months Ended June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Employee stock options $ 2,162 $ 897 $ 3,592 $ 1,516 Restricted stock 77 59 159 110 Restricted stock units 311 494 1,415 1,092 Nonemployee stock options 29 148 54 181 Total stock-based compensation expense $ 2,579 $ 1,598 $ 5,220 $ 2,899 The Company recorded stock-based compensation costs in the following categories (in thousands): Three Months Ended Six Months Ended June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Cost of sales $ 22 $ 4 $ 36 $ 7 General and administrative 1,018 655 1,796 1,174 Marketing and selling 690 366 1,861 826 Research and development 849 573 1,527 892 Total stock-based compensation expense, net 2,579 1,598 5,220 2,899 Amounts capitalized as part of inventory 276 145 465 267 Total stock-based compensation expense, gross $ 2,855 $ 1,743 $ 5,685 $ 3,166 Note 11 — Stockholders’ Equity (Continued) Incentive Plan The Amended and Restated Omnibus Equity Incentive Plan (“the Plan”) provides for various forms of stock-based incentives. To date, of the available forms of awards under the Plan, the Company has granted only stock options, restricted stock, unrestricted share grants, and restricted stock units (“RSUs”). Options under the Plan are granted at fair market value on the date of grant, become exercisable generally over a three-year period, or as determined by the Board of Directors, and expire over periods not exceeding 10 years from the date of grant. Certain option and share awards provide for accelerated vesting if there is a change in control and pre-established financial metrics are met (as defined in the Plan). Grants of restricted stock outstanding under the Plan generally vest over periods of one to three years. Grants of RSUs outstanding under the Plan generally vest based on service, performance, or a combination of both. As of June 28, 2019, there were 1,639,474 shares available for grant under the Plan Assumptions The fair value of each option award is estimated on the date of grant using a Black-Scholes option valuation model applying the weighted-average assumptions noted in the following table. Expected volatilities are based on historical volatility of the Company’s stock. The expected term of options granted is derived from the historical exercises and post-vesting cancellations estimated forfeiture rate based on historical forfeiture experience. The risk-free rate is based on the U.S. Treasury yield curve corresponding to the expected term at the time of the grant. Three Months Ended Six Months Ended June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Expected dividend yield 0 % 0 % 0 % 0 % Expected volatility 53 % 53 % 53 % 53 % Risk-free interest rate 2.05 % 2.81 % 2.41 % 2.70 % Expected term (in years) 5.67 5.72 5.67 5.72 Stock Options A summary of stock option activity under the Plan for the six months ended June 28, 2019 is presented below: Stock Options (in 000’s) Minimum Exercise Price Maximum Exercise Price Outstanding at December 28, 2018 3,920 Granted 801 Exercised (126 ) Forfeited or expired (16 ) Outstanding at June 28, 2019 4,579 $ 3.50 $ 43.84 Exercisable at June 28, 2019 3,026 Note 11 — Stockholders’ Equity (Continued) Restricted Stock and Restricted Stock Units A summary of restricted stock and RSU activity under the Plan for the six months ended June 28, 2019 is presented below: Restricted Stock (in 000’s) Restricted Stock Units (in 000’s) Unvested at December 28, 2018 11 322 Granted 11 19 Vested (11 ) (202 ) Forfeited or expired — (5 ) Unvested at June 28, 2019 11 134 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 28, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 12 - Commitments and Contingencies Litigation and Claims From time to time, the Company is involved in various legal proceedings and other matters arising in the normal course of business. These legal proceedings and other matters may relate to, among other things, contractual rights and obligations, employment matters, or claims of product liability. STAAR maintains insurance coverage for various matters, including product liability and certain securities claims. While the Company does not believe that any of the claims known is likely to have a material adverse effect on the Company’s financial condition or results of operations, new claims or unexpected results of existing claims could lead to significant financial harm. Employment Agreements The Company’s Chief Executive Officer entered into an employment agreement with the Company, effective March 1, 2015. She and certain officers have as provisions of their agreements certain rights, including continuance of cash compensation and benefits, upon a “change in control,” which may include an acquisition of substantially all its assets, or termination “without cause or for good reason” as defined in the employment agreements. |
Basic and Diluted Net Income Pe
Basic and Diluted Net Income Per Share | 6 Months Ended |
Jun. 28, 2019 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Income Per Share | Note 13 — Basic and Diluted Net Income Per Share The following table sets forth the computation of basic and diluted net income per share (in thousands except per share amounts): Three Months Ended Six Months Ended June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Numerator: Net income $ 3,914 $ 1,830 $ 5,281 $ 2,413 Denominator: Weighted average common shares: Common shares outstanding 44,489 41,734 44,368 41,579 Less: Unvested restricted stock (10 ) (11 ) (11 ) (11 ) Denominator for basic calculation 44,479 41,723 44,357 41,568 Weighted average effects of potentially diluted common stock: Stock options 2,149 2,037 2,292 1,800 Unvested restricted stock 97 17 185 17 Restricted stock units 8 222 8 269 Denominator for diluted calculation 46,733 43,999 46,842 43,654 Net income per share: Basic $ 0.09 $ 0.04 $ 0.12 $ 0.06 Diluted $ 0.08 $ 0.04 $ 0.11 $ 0.06 The following table sets forth (in thousands) the weighted average number of options to purchase shares of common stock, restricted stock, and restricted stock units with either exercise prices or unrecognized compensation cost per share greater than the average market price per share of the Company’s common stock, which were not included in the calculation of diluted per share amounts because the effects would be anti-dilutive. Three Months Ended Six Months Ended June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Stock options 1,991 554 1,256 539 Restricted stock and restricted stock units 1 2 — 1 Total 1,992 556 1,256 540 |
Disaggregation of Sales, Geogra
Disaggregation of Sales, Geographic Sales and Product Sales | 6 Months Ended |
Jun. 28, 2019 | |
Segment Reporting [Abstract] | |
Disaggregation of Sales, Geographic Sales and Product Sales | Note 14 — Disaggregation of Sales, Geographic Sales and Product Sales In the following tables, sales are disaggregated by category, sales by geographic market and sales by product data. The following breaks down sales into the following categories (in thousands): Three Months Ended Six Months Ended June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Non-consignment sales $ 35,556 $ 29,661 $ 63,822 $ 51,842 Consignment sales 4,108 4,244 8,425 9,156 Total net sales $ 39,664 $ 33,905 $ 72,247 $ 60,998 Note 14 — Disaggregation of Sales , Geographic Sales and Product Sales (Continued) The Company markets and sells its products in over 75 countries and conducts its manufacturing in the United States. Other than China and Japan, the Company does not conduct business in any country in which its sales exceed 10% of worldwide consolidated net sales. Sales are attributed to countries based on location of customers. thousands): Three Months Ended Six Months Ended June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 China $ 19,394 $ 13,965 $ 31,165 $ 21,875 Japan 6,275 6,692 11,794 11,775 Other (1) 13,995 13,248 29,288 27,348 Total net sales $ 39,664 $ 33,905 $ 72,247 $ 60,998 (1) No other location individually exceeds 10% of the total sales. In addition, domestic and foreign sales are as follows (in thousands): Three Months Ended Six Months Ended June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Domestic $ 2,114 $ 1,895 $ 4,066 $ 3,651 Foreign 37,550 32,010 68,181 57,347 Total net sales $ 39,664 $ 33,905 $ 72,247 $ 60,998 100 Three Months Ended Six Months Ended June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 ICLs $ 34,432 $ 27,292 $ 62,218 $ 48,450 Other product sales IOLs 3,874 4,186 7,891 8,244 Other surgical products 1,358 2,427 2,138 4,304 Total other product sales 5,232 6,613 10,029 12,548 Total net sales $ 39,664 $ 33,905 $ 72,247 $ 60,998 One customer, our distributor in China, accounted for 49% and 43% of net sales for the three and six months ended June 28, 2019, respectively, and the same customer accounted for 41% and 36% of net sales for the three and six months ended June 29, 2018, respectively. As of June 28, 2019 and December 28, 2018, respectively, one customer, our distributor in China, accounted for 48% and 37% of consolidated trade receivables. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 28, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The Condensed Consolidated Financial Statements of the Company present the financial position, results of operations, and cash flows of STAAR Surgical Company and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities Exchange Commission. In accordance with those rules and regulations certain information and footnote disclosures normally included in Comprehensive Financial Statements have been condensed or omitted pursuant to such rules and regulations. The Consolidated Balance Sheet as of December 28, 2018 was derived from the audited financial statements at that date, but does not include all the information and footnotes required by GAAP. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 28, 2018. The Condensed Consolidated Financial Statements for the three and six months ended June 28, 2019 and June 29, 2018, in the opinion of management, include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the Company’s financial condition and results of operations. The results of operations for the three and six months ended June 28, 2019 and June 29, 2018, are not necessarily indicative of the results to be expected for any other interim period or for the entire year. Each of the Company’s fiscal reporting periods ends on the Friday nearest to the quarter ending date and generally consists of 13 weeks. Unless the context indicates otherwise “we,” “us,” the “Company,” and “STAAR” refer to STAAR Surgical Company and its consolidated subsidiaries. |
Cash and Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Condensed Consolidated Statements of Cash Flows (in 000’s): December 28, 2018 June 29, 2018 Cash and cash equivalents $ 103,877 $ 21,246 Restricted cash (1) 122 121 Total cash, cash equivalents and restricted cash $ 103,999 $ 21,367 (1) The Company had restricted cash set aside as collateral for a standby letter of credit required by the California Department of Public Health for unforeseen future regulatory costs related to the decommissioning of certain manufacturing equipment. During the three months ended June 28, 2019, the Company was no longer required to set aside collateral for this standby letter of credit. |
Lease Accounting | Lease Accounting On December 29, 2018 (beginning of fiscal year 2019), the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2016-02, “Leases (Topic 842)” and its subsequent amendments affecting the Company: (i) ASU 2018-10, “Codification Improvements to Topic 842, Leases,” and (ii) ASU 2018-11, “Leases (Topic 842): Targeted improvements,” using the modified retrospective method. Upon adoption of ASU 2016-02, the Company recognized a cumulative adjustment of $113,000 which decreased the accumulated deficit and recognized right-of-use (“ROU”) assets and lease liabilities for operating leases, whereby the Company’s accounting finance leases remained substantially unchanged. The Company recognizes ROU assets and lease liabilities for leases with terms greater than twelve months in the Condensed Consolidated Balance Sheets. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the Condensed Consolidated Statement of Income. Note 1 — Basis of Presentation and Significant Accounting Policies (Continued) Lease Accounting (Continued) A contract contains a lease if the contract conveys the right to control an identified asset for a period of time in exchange for consideration. An asset is either explicitly identified or implicitly identified and must be physically distinct. In addition, the Company must have both the right to obtain substantially all of the economic benefits from use of the identified asset and has the right to direct the use of the identified asset. Certain leases may have non-lease components such as common area maintenance expense for building leases and maintenance expenses for automobile leases. In general, the Company separates common area maintenance expense component from the value of the ROU asset and lease liability when evaluating rental properties under ASU 2016-02, whereas, the Company includes the maintenance and service components in the value of the ROU asset and lease liability while evaluating automobile leases under ASU 2016-02. When determining whether a lease is a finance lease or an operating lease, ASU 2016-02 does not specifically define criteria to determine “major part of remaining economic life of the underlying asset” and “substantially all of the fair value of the underlying asset.” For lease classification determination, the Company continues to use (i) greater to or equal to 75% to determine whether the lease term is a major part of the remaining economic life of the underlying asset and (ii) greater to or equal to 90% to determine whether the present value of the sum of lease payments is substantially all of the fair value of the underlying asset. The Company uses either the rate implicit in the lease or its incremental borrowing rate as the discount rate in lease accounting. When adopting ASU 2016-02, the Company did not reassess any expired or existing contracts, reassess the lease classification for any expired or existing leases and reassess initial direct costs for exiting leases. The Company also elected not to capitalize leases that have terms of twelve months or less. The Company reviews ROU assets, for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. The Company measures recoverability of these assets by comparing the carrying value of such assets to the estimated undiscounted future cash flows the assets are expected to generate. When the estimated undiscounted future cash flows are less than their carrying amount, an impairment loss is recognized equal to the difference between the assets’ fair value and their carrying value. |
Recently Adopted Accounting Pronouncements and Recent Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements and Recent Accounting Pronouncements Not Yet Adopted On December 29, 2018 (beginning of fiscal year 2019), the Company adopted ASU 2018-02, “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” provides an option to reclassify stranded tax effects within Accumulated Other Comprehensive Income to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recorded. The adoption of ASU 2018‑02 did not have material impact on the Condensed Consolidated Financial Statements. On December 29, 2018 (beginning of fiscal year 2019), the Company adopted ASU 2018-07, “Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting,” aligns the accounting for share-based payments to nonemployees similar to employees. Upon the adoption of ASU 2018-07, the Company recognized a cumulative adjustment of $315,000 which decreased the accumulated deficit. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement,” which modifies certain disclosures requirements for reporting fair value measurements. This is effective for fiscal years ending after December 15, 2019. Early adoption is permitted. The Company will adopt this standard as of January 4, 2020 (beginning of fiscal year 2020) and is currently evaluating the disclosure requirements and its effect on the Condensed Consolidated Financial Statements. Note 1 — Basis of Presentation and Significant Accounting Policies (Continued) Recently Adopted Accounting Pronouncements and Recent Accounting Pronouncements Not Yet Adopted (Continued) In August 2018, the FASB issued ASU 2018-14, “Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20); Disclosure Framework – Changes in the Disclosure Requirement for Defined Benefit Plans,” which modifies disclosure requirements for employers that sponsor defined benefit pension or other post retirement plans. This is effective for fiscal years ending after December 15, 2020. Early adoption is permitted. The Company will adopt this standard as of January 2, 2021 (beginning of fiscal year 2021) and is currently evaluating the disclosure requirements and its effect on the Condensed Consolidated Financial Statements. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 28, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Reconciliation of Cash And Cash Equivalents And Restricted Cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Condensed Consolidated Statements of Cash Flows (in 000’s): December 28, 2018 June 29, 2018 Cash and cash equivalents $ 103,877 $ 21,246 Restricted cash (1) 122 121 Total cash, cash equivalents and restricted cash $ 103,999 $ 21,367 (1) |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 28, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | Inventories, net are stated at the lower of cost and net realizable value, determined on a first-in, first-out basis and consisted of the following (in thousands): June 28, 2019 December 28, 2018 Raw materials and purchased parts $ 3,195 $ 2,678 Work in process 2,907 2,195 Finished goods 11,621 13,214 Total inventories, gross 17,723 18,087 Less inventory reserves 1,395 1,383 Total inventories, net $ 16,328 $ 16,704 |
Prepayments, Deposits, and Ot_2
Prepayments, Deposits, and Other Current Assets (Tables) | 6 Months Ended |
Jun. 28, 2019 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Schedule Of Prepayments, Deposits, and Other Current Assets | Prepayments, deposits, and other current assets consisted of the following (in thousands): June 28, 2019 December 28, 2018 Prepayments and deposits $ 2,953 $ 1,707 Prepaid insurance 928 1,271 Consumption tax receivable 284 912 Value added tax (VAT) receivable 1,078 565 Income tax receivable 295 285 BVG Prepayment 372 16 Other (1) 457 289 Total prepayments, deposits and other current assets $ 6,367 $ 5,045 (1) |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 28, 2019 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment, Net | Property, plant and equipment, net consisted of the following (in thousands): June 28, 2019 December 28, 2018 Machinery and equipment $ 21,266 $ 19,000 Furniture and fixtures 9,880 9,860 Leasehold improvements 10,095 10,045 Total property, plant and equipment, gross 41,241 38,905 Less accumulated depreciation 27,859 27,454 Total property, plant and equipment, net $ 13,382 $ 11,451 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 28, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Intangible assets, net consisted of the following (in thousands): June 28, 2019 December 28, 2018 Long-lived amortized intangible assets Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Patents and licenses $ 9,302 $ (9,041 ) $ 261 $ 9,257 $ (9,014 ) $ 243 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 28, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities consisted of the following (in thousands): June 28, 2019 December 28, 2018 Accrued salaries and wages $ 3,907 $ 3,172 Accrued insurance 283 1,061 Accrued consumption tax 488 995 Accrued bonuses 1,784 5,113 Income taxes payable 1,914 1,105 Other (1) 2,395 1,985 Total other current liabilities $ 10,771 $ 13,431 (1) No individual item in “Other” exceeds 5% of the other current liabilities. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 28, 2019 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information Related to Finance Leases | June 28, 2019 Machinery and equipment $ 2,158 Furniture and fixtures 1,042 Leasehold improvements 27 Finance lease right-of-use assets, gross 3,227 Less accumulated depreciation 889 Finance lease right-of-use assets, net $ 2,338 Total finance lease liability $ 1,540 Weighted-average remaining lease term (in years) 1.4 Weighted-average discount rate 6.47 % |
Supplemental Cash Flow Information Related to Finance Leases | Supplemental cash flow information related to finance leases consisted of the following (dollars in thousands): Three Months Ended Six Months Ended June 28, 2019 June 28, 2019 Amortization of finance lease right-of-use asset $ 145 $ 306 Interest on finance lease liabilities 22 41 Cash paid for amounts included in the measurement of finance lease liabilities: Operating cash flows 22 41 Financing cash flows 316 681 Right-of-use assets obtained in exchange for new finance lease liabilities 37 679 |
Supplemental Balance Sheet Information Related to Operating Leases | Note 8 – Leases (Continued) Operating Leases (Continued) June 28, 2019 Machinery and equipment $ 757 Furniture and fixtures 462 Real property 10,552 Operating lease right-of-use assets, gross 11,771 Less accumulated depreciation 4,552 Operating lease right-of-use assets, net $ 7,219 Total operating lease liability $ 7,346 Weighted-average remaining lease term (in years) 2.6 Weighted-average discount rate 1.84 % |
Supplemental Cash Flow Information Related to Operating Leases | Supplemental cash flow information related to operating leases was as follows (dollars in thousands): Three Months Ended Six Months Ended June 28, 2019 June 28, 2019 Operating lease cost $ 683 $ 1,294 Cash paid for amounts included in the measurement of operating lease liabilities: Operating cash flows 691 1,292 Right-of-use assets obtained in exchange for new operating lease liabilities 1,193 2,657 |
Schedule of Estimated Future Minimum Lease Payments under Operating and Finance Leases Having Initial or Remaining Non-Cancelable Lease Terms More Than One Year | Estimated future minimum lease payments under operating and finance leases having initial or remaining non-cancelable lease terms more than one year as of June 28, 2019 and December 28, 2018 are as follows (in thousands): As of June 28, 2019 12 Months Ended Operating Leases Finance Leases June 2020 $ 2,916 $ 1,009 June 2021 2,201 506 June 2022 1,115 78 June 2023 942 8 June 2024 440 6 Thereafter 2 — Total minimum lease payments, including interest $ 7,616 $ 1,607 Less amounts representing interest 270 67 Total minimum lease payments $ 7,346 $ 1,540 As of December 28, 2018 12 Months Ended Operating Leases Finance Leases December 2019 $ 2,606 $ 1,153 December 2020 2,202 332 December 2021 980 143 December 2022 507 4 December 2023 202 — Thereafter 12 — Total minimum lease payments, including interest 6,509 1,632 Less amounts representing interest — 75 Total minimum lease payments $ 6,509 $ 1,557 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Provision | The Company recorded an income tax provision as follows (in thousands): Three Months Ended Six Months Ended June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Provision for income taxes $ 1,131 $ 805 $ 1,620 $ 1,106 |
Defined Benefit Pension Plans (
Defined Benefit Pension Plans (Tables) | 6 Months Ended |
Jun. 28, 2019 | |
Defined Benefit Pension Plans And Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Schedule of Net Benefit Costs | The Company has defined benefit plans covering employees of its Switzerland and Japan operations. The following table summarizes the components of net periodic pension cost recorded for the Company’s defined benefit pension plans (in thousands): Three Months Ended Six Months Ended June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Service cost (1) $ 248 $ 139 $ 480 $ 277 Interest cost (2) 20 15 40 29 Expected return on plan assets (2) (34 ) (28 ) (67 ) (54 ) Net amortization of transitional obligation (2),(3) — 2 — 5 Prior service credit (2),(3) (5 ) (5 ) (11 ) (11 ) Actuarial loss recognized in current period (2),(3) 33 29 65 57 Net periodic pension cost $ 262 $ 152 $ 507 $ 303 (1) Recognized in selling general and administrative expenses on the Condensed Consolidated Statements of Income. ( 2 ) Recognized in other income (expense), net on the Condensed Consolidated Statements of Income. (3) Amounts reclassified from accumulated other comprehensive income (loss). |
Schedule of Defined Benefit Plans Disclosures | The Company currently is not required to and does not make contributions to its Japan pension plan. The Company’s contributions to its Swiss pension plan are as follows (in thousands): Three Months Ended Six Months Ended June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Employer contribution $ 137 $ 79 $ 263 $ 145 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 28, 2019 | |
Stockholders Equity Note [Abstract] | |
Schedule of Compensation Cost | The cost that has been charged against income for stock-based compensation is set forth below (in thousands): Three Months Ended Six Months Ended June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Employee stock options $ 2,162 $ 897 $ 3,592 $ 1,516 Restricted stock 77 59 159 110 Restricted stock units 311 494 1,415 1,092 Nonemployee stock options 29 148 54 181 Total stock-based compensation expense $ 2,579 $ 1,598 $ 5,220 $ 2,899 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The Company recorded stock-based compensation costs in the following categories (in thousands): Three Months Ended Six Months Ended June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Cost of sales $ 22 $ 4 $ 36 $ 7 General and administrative 1,018 655 1,796 1,174 Marketing and selling 690 366 1,861 826 Research and development 849 573 1,527 892 Total stock-based compensation expense, net 2,579 1,598 5,220 2,899 Amounts capitalized as part of inventory 276 145 465 267 Total stock-based compensation expense, gross $ 2,855 $ 1,743 $ 5,685 $ 3,166 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The risk-free rate is based on the U.S. Treasury yield curve corresponding to the expected term at the time of the grant. Three Months Ended Six Months Ended June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Expected dividend yield 0 % 0 % 0 % 0 % Expected volatility 53 % 53 % 53 % 53 % Risk-free interest rate 2.05 % 2.81 % 2.41 % 2.70 % Expected term (in years) 5.67 5.72 5.67 5.72 |
Schedule of Share-based Compensation, Stock Options, Activity | A summary of stock option activity under the Plan for the six months ended June 28, 2019 is presented below: Stock Options (in 000’s) Minimum Exercise Price Maximum Exercise Price Outstanding at December 28, 2018 3,920 Granted 801 Exercised (126 ) Forfeited or expired (16 ) Outstanding at June 28, 2019 4,579 $ 3.50 $ 43.84 Exercisable at June 28, 2019 3,026 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | A summary of restricted stock and RSU activity under the Plan for the six months ended June 28, 2019 is presented below: Restricted Stock (in 000’s) Restricted Stock Units (in 000’s) Unvested at December 28, 2018 11 322 Granted 11 19 Vested (11 ) (202 ) Forfeited or expired — (5 ) Unvested at June 28, 2019 11 134 |
Basic and Diluted Net Income _2
Basic and Diluted Net Income Per Share (Tables) | 6 Months Ended |
Jun. 28, 2019 | |
Earnings Per Share [Abstract] | |
Summary of Computation of Basic and Diluted Net Income Per Share | The following table sets forth the computation of basic and diluted net income per share (in thousands except per share amounts): Three Months Ended Six Months Ended June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Numerator: Net income $ 3,914 $ 1,830 $ 5,281 $ 2,413 Denominator: Weighted average common shares: Common shares outstanding 44,489 41,734 44,368 41,579 Less: Unvested restricted stock (10 ) (11 ) (11 ) (11 ) Denominator for basic calculation 44,479 41,723 44,357 41,568 Weighted average effects of potentially diluted common stock: Stock options 2,149 2,037 2,292 1,800 Unvested restricted stock 97 17 185 17 Restricted stock units 8 222 8 269 Denominator for diluted calculation 46,733 43,999 46,842 43,654 Net income per share: Basic $ 0.09 $ 0.04 $ 0.12 $ 0.06 Diluted $ 0.08 $ 0.04 $ 0.11 $ 0.06 |
Schedule of Anti-dilutive Securities Excluded from Computation of Earnings Per Share | Three Months Ended Six Months Ended June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Stock options 1,991 554 1,256 539 Restricted stock and restricted stock units 1 2 — 1 Total 1,992 556 1,256 540 |
Disaggregation of Sales, Geog_2
Disaggregation of Sales, Geographic Sales and Product Sales (Tables) | 6 Months Ended |
Jun. 28, 2019 | |
Segment Reporting [Abstract] | |
Disaggregation of Sales | In the following tables, sales are disaggregated by category, sales by geographic market and sales by product data. The following breaks down sales into the following categories (in thousands): Three Months Ended Six Months Ended June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Non-consignment sales $ 35,556 $ 29,661 $ 63,822 $ 51,842 Consignment sales 4,108 4,244 8,425 9,156 Total net sales $ 39,664 $ 33,905 $ 72,247 $ 60,998 |
Net Sales by Geographic Areas | The composition of the Company’s net sales to unaffiliated customers is set forth below (in thousands): Three Months Ended Six Months Ended June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 China $ 19,394 $ 13,965 $ 31,165 $ 21,875 Japan 6,275 6,692 11,794 11,775 Other (1) 13,995 13,248 29,288 27,348 Total net sales $ 39,664 $ 33,905 $ 72,247 $ 60,998 (1) No other location individually exceeds 10% of the total sales. In addition, domestic and foreign sales are as follows (in thousands): Three Months Ended Six Months Ended June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Domestic $ 2,114 $ 1,895 $ 4,066 $ 3,651 Foreign 37,550 32,010 68,181 57,347 Total net sales $ 39,664 $ 33,905 $ 72,247 $ 60,998 |
Net Sales by Products and Services | The composition of the Company’s net sales by product line is as follows (in thousands): Three Months Ended Six Months Ended June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 ICLs $ 34,432 $ 27,292 $ 62,218 $ 48,450 Other product sales IOLs 3,874 4,186 7,891 8,244 Other surgical products 1,358 2,427 2,138 4,304 Total other product sales 5,232 6,613 10,029 12,548 Total net sales $ 39,664 $ 33,905 $ 72,247 $ 60,998 |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies - Schedule of Reconciliation of Cash And Cash Equivalents And Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 28, 2019 | Dec. 28, 2018 | Jun. 29, 2018 | Dec. 29, 2017 | |
Accounting Policies [Abstract] | |||||
Cash and cash equivalents | $ 103,251 | $ 103,877 | $ 21,246 | ||
Restricted cash | [1] | 122 | 121 | ||
Total cash, cash equivalents and restricted cash | $ 103,251 | $ 103,999 | $ 21,367 | $ 18,641 | |
[1] | Included in other assets on the Condensed Consolidated Balance Sheets. |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies - Additional Information (Details) | Dec. 29, 2018USD ($) |
Accounting Standards Update 2016-02 | |
Organization And Description Of Business And Accounting Policies [Line Items] | |
Cumulative adjustment accumulated deficit | $ 113,000 |
Accounting Standards Update 2018-07 | |
Organization And Description Of Business And Accounting Policies [Line Items] | |
Cumulative adjustment accumulated deficit | $ 315,000 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory, Current (Details) - USD ($) $ in Thousands | Jun. 28, 2019 | Dec. 28, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials and purchased parts | $ 3,195 | $ 2,678 |
Work in process | 2,907 | 2,195 |
Finished goods | 11,621 | 13,214 |
Total inventories, gross | 17,723 | 18,087 |
Less inventory reserves | 1,395 | 1,383 |
Total inventories, net | $ 16,328 | $ 16,704 |
Prepayments, Deposits, and Ot_3
Prepayments, Deposits, and Other Current Assets - Schedule Of Prepayments, Deposits, and Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 28, 2019 | Dec. 28, 2018 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |||
Prepayments and deposits | $ 2,953 | $ 1,707 | |
Prepaid insurance | 928 | 1,271 | |
Consumption tax receivable | 284 | 912 | |
Value added tax (VAT) receivable | 1,078 | 565 | |
Income tax receivable | 295 | 285 | |
BVG Prepayment | 372 | 16 | |
Other | [1] | 457 | 289 |
Total prepayments, deposits and other current assets | $ 6,367 | $ 5,045 | |
[1] | No individual item in “other current assets” exceeds 5% of the total prepayments, deposits and other current assets. |
Prepayments, Deposits, and Ot_4
Prepayments, Deposits, and Other Current Assets - Schedule Of Prepayments, Deposits, and Other Current Assets (Parenthetical) (Details) | Jun. 28, 2019 | Dec. 28, 2018 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Percent of prepayments deposits and other current assets included in other current assets | 5.00% | 5.00% |
Property, Plant and Equipment -
Property, Plant and Equipment - Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | Jun. 28, 2019 | Dec. 28, 2018 |
Property Plant And Equipment [Abstract] | ||
Machinery and equipment | $ 21,266 | $ 19,000 |
Furniture and fixtures | 9,880 | 9,860 |
Leasehold improvements | 10,095 | 10,045 |
Total property, plant and equipment, gross | 41,241 | 38,905 |
Less accumulated depreciation | 27,859 | 27,454 |
Total property, plant and equipment, net | $ 13,382 | $ 11,451 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 28, 2019 | Dec. 28, 2018 |
Long-lived intangible assets | ||
Long-lived intangible assets, Net | $ 261 | $ 243 |
Patents and licenses | ||
Long-lived intangible assets | ||
Long-lived intangible assets, Gross Carrying Amount | 9,302 | 9,257 |
Long-lived intangible assets, Accumulated Amortization | (9,041) | (9,014) |
Long-lived intangible assets, Net | $ 261 | $ 243 |
Other Current Liabilities - Sch
Other Current Liabilities - Schedule of Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 28, 2019 | Dec. 28, 2018 | |
Other Liabilities Disclosure [Abstract] | |||
Accrued salaries and wages | $ 3,907 | $ 3,172 | |
Accrued insurance | 283 | 1,061 | |
Accrued consumption tax | 488 | 995 | |
Accrued bonuses | 1,784 | 5,113 | |
Income taxes payable | 1,914 | 1,105 | |
Other | [1] | 2,395 | 1,985 |
Total other current liabilities | $ 10,771 | $ 13,431 | |
[1] | No individual item in “Other” exceeds 5% of the other current liabilities |
Other Current Liabilities - S_2
Other Current Liabilities - Schedule of Other Current Liabilities (Parenthetical) (Details) | Jun. 28, 2019 | Dec. 28, 2018 |
Other Liabilities Disclosure [Abstract] | ||
Percent of Other Current Liabilities Included in Other | 5.00% | 5.00% |
Lines of Credit - Additional In
Lines of Credit - Additional Information (Details) | 6 Months Ended | ||||
Jun. 28, 2019USD ($) | Jun. 28, 2019JPY (¥) | Dec. 28, 2018USD ($) | Dec. 28, 2018JPY (¥) | Sep. 30, 2013CHF (SFr) | |
Line Of Credit Facility [Line Items] | |||||
Line of Credit, Current | $ 2,854,000 | $ 3,780,000 | |||
Finance lease liability | 1,540,000 | ||||
Farnam Street Financial, Inc. | |||||
Line Of Credit Facility [Line Items] | |||||
Finance lease liability | $ 500,000 | ||||
Mizuho Bank | |||||
Line Of Credit Facility [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | ¥ | ¥ 500,000,000 | ||||
Line of Credit Facility, Interest Rate Description | (approximately 0.06% as of June 28, 2019) plus a 0.50% spread, and may be renewed quarterly (the current line expires on August 21, 2019). | ||||
Line of credit facility, interest rate | 0.06% | 0.06% | |||
Line of credit facility, spread rate | 0.50% | ||||
Line of credit facility, expiration date | Aug. 21, 2019 | ||||
Line of Credit, Current | $ 2,854,000 | ¥ 307,500,000 | 3,780,000 | ¥ 417,500,000 | |
Interest Rate Increase In Case Of Default | 14.00% | ||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 1,786,000 | ¥ 192,500,000 | 747,000 | ¥ 82,500,000 | |
Credit Suisse Bank | |||||
Line Of Credit Facility [Line Items] | |||||
Line of Credit Facility, Current Borrowing Capacity | $ 1,000,000 | 1,000,000 | SFr 1,000,000 | ||
Percentage Of Commission On Outstanding Notes Payable | 0.25% | ||||
Borrowings outstanding | $ 0 | $ 0 |
Leases - Additional Information
Leases - Additional Information (Details) | Jun. 28, 2019 |
Minimum | |
Lessee Lease Description [Line Items] | |
Finance lease, term of contract | 2 years |
Operating lease, term of contract | 2 years |
Maximum | |
Lessee Lease Description [Line Items] | |
Finance lease, term of contract | 5 years |
Operating lease, term of contract | 5 years |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Finance Leases (Details) $ in Thousands | Jun. 28, 2019USD ($) |
Lessee Lease Description [Line Items] | |
Finance lease right-of-use assets, gross | $ 3,227 |
Less accumulated depreciation | 889 |
Finance lease right-of-use assets, net | 2,338 |
Finance lease liability | $ 1,540 |
Weighted-average remaining lease term (in years) | 1 year 4 months 24 days |
Weighted-average discount rate | 6.47% |
Machinery and Equipment | |
Lessee Lease Description [Line Items] | |
Finance lease right-of-use assets, gross | $ 2,158 |
Furniture and Fixtures | |
Lessee Lease Description [Line Items] | |
Finance lease right-of-use assets, gross | 1,042 |
Leasehold Improvements | |
Lessee Lease Description [Line Items] | |
Finance lease right-of-use assets, gross | $ 27 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information Related to Finance Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 28, 2019 | Jun. 28, 2019 | Jun. 29, 2018 | |
Leases [Abstract] | |||
Amortization of finance lease right-of-use asset | $ 145 | $ 306 | |
Interest on finance lease liabilities | 22 | 41 | |
Cash paid for amounts included in the measurement of finance lease liabilities: | |||
Operating cash flows | 22 | 41 | |
Financing cash flows | 316 | 681 | $ 881 |
Right-of-use assets obtained in exchange for new finance lease liabilities | $ 37 | $ 679 |
Leases - Supplemental Balance_2
Leases - Supplemental Balance Sheet Information Related to Operating Leases (Details) $ in Thousands | Jun. 28, 2019USD ($) |
Lessee Lease Description [Line Items] | |
Operating lease right-of-use assets, gross | $ 11,771 |
Less accumulated depreciation | 4,552 |
Operating lease right-of-use assets, net | 7,219 |
Total operating lease liability | $ 7,346 |
Weighted-average remaining lease term (in years) | 2 years 7 months 6 days |
Weighted-average discount rate | 1.84% |
Machinery and Equipment | |
Lessee Lease Description [Line Items] | |
Operating lease right-of-use assets, gross | $ 757 |
Furniture and Fixtures | |
Lessee Lease Description [Line Items] | |
Operating lease right-of-use assets, gross | 462 |
Real Property | |
Lessee Lease Description [Line Items] | |
Operating lease right-of-use assets, gross | $ 10,552 |
Leases - Supplemental Cash Fl_2
Leases - Supplemental Cash Flow Information Related to Operating Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 28, 2019 | Jun. 28, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 683 | $ 1,294 |
Cash paid for amounts included in the measurement of operating lease liabilities: | ||
Operating cash flows | 691 | 1,292 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 1,193 | $ 2,657 |
Leases - Schedule of Estimated
Leases - Schedule of Estimated Future Minimum Lease Payments under Operating and Finance Leases Having Initial or Remaining Non-Cancelable Lease Terms More Than One Year (Details) - USD ($) $ in Thousands | Jun. 28, 2019 | Dec. 28, 2018 |
Operating Lease Liabilities, Payments, Due, Rolling Maturity [Abstract] | ||
June 2020 | $ 2,916 | |
June 2021 | 2,201 | |
June 2022 | 1,115 | |
June 2023 | 942 | |
June 2024 | 440 | |
Thereafter | 2 | |
Total minimum lease payments, including interest | 7,616 | |
Less amounts representing interest | 270 | |
Total operating lease liability | 7,346 | |
Finance Lease Liabilities, Payments, Rolling Maturity [Abstract] | ||
June 2020 | 1,009 | |
June 2021 | 506 | |
June 2022 | 78 | |
June 2023 | 8 | |
June 2024 | 6 | |
Total minimum lease payments, including interest | 1,607 | |
Less amounts representing interest | 67 | |
Finance lease liability | $ 1,540 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
December 2019 | $ 2,606 | |
December 2020 | 2,202 | |
December 2021 | 980 | |
December 2022 | 507 | |
December 2023 | 202 | |
Thereafter | 12 | |
Total minimum lease payments, including interest | 6,509 | |
Total minimum lease payments | 6,509 | |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
December 2019 | 1,153 | |
December 2020 | 332 | |
December 2021 | 143 | |
December 2022 | 4 | |
Total minimum lease payments, including interest | 1,632 | |
Less amounts representing interest | 75 | |
Total minimum lease payments | $ 1,557 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Provision (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 28, 2019 | Jun. 29, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 1,131 | $ 805 | $ 1,620 | $ 1,106 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 6 Months Ended |
Jun. 28, 2019USD ($) | |
Income Tax Disclosure [Abstract] | |
Percentage of deduction in GILTI | 50.00% |
Income tax reconciliation of global intangible low-taxed income | $ 7,699,000 |
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax | $ 273,000 |
Defined Benefit Pension Plans -
Defined Benefit Pension Plans - Schedule of Net Benefit Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 28, 2019 | Jun. 29, 2018 | ||
Defined Benefit Pension Plans And Defined Benefit Postretirement Plans Disclosure [Abstract] | |||||
Service cost | [1] | $ 248 | $ 139 | $ 480 | $ 277 |
Interest cost | [2] | 20 | 15 | 40 | 29 |
Expected return on plan assets | [2] | (34) | (28) | (67) | (54) |
Net amortization of transitional obligation | [2],[3] | 2 | 5 | ||
Prior service credit | [2],[3] | (5) | (5) | (11) | (11) |
Actuarial loss recognized in current period | [2],[3] | 33 | 29 | 65 | 57 |
Net periodic pension cost | $ 262 | $ 152 | $ 507 | $ 303 | |
[1] | Recognized in selling general and administrative expenses on the Condensed Consolidated Statements of Income. | ||||
[2] | Recognized in other income (expense), net on the Condensed Consolidated Statements of Income. | ||||
[3] | Amounts reclassified from accumulated other comprehensive income (loss). |
Defined Benefit Pension Plans_2
Defined Benefit Pension Plans - Schedule of Defined Benefit Plans Disclosures (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 28, 2019 | Jun. 29, 2018 | |
Swiss pension plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 137 | $ 79 | $ 263 | $ 145 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Compensation Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 28, 2019 | Jun. 29, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | $ 2,579 | $ 1,598 | $ 5,220 | $ 2,899 |
Employee Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 2,162 | 897 | 3,592 | 1,516 |
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 77 | 59 | 159 | 110 |
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 311 | 494 | 1,415 | 1,092 |
Non Employee Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | $ 29 | $ 148 | $ 54 | $ 181 |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 28, 2019 | Jun. 29, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense, net | $ 2,579 | $ 1,598 | $ 5,220 | $ 2,899 |
Amounts capitalized as part of inventory | 276 | 145 | 465 | 267 |
Total stock-based compensation expense, gross | 2,855 | 1,743 | 5,685 | 3,166 |
Cost of Sales | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense, net | 22 | 4 | 36 | 7 |
General and Administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense, net | 1,018 | 655 | 1,796 | 1,174 |
Marketing and Selling | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense, net | 690 | 366 | 1,861 | 826 |
Research and Development Expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense, net | $ 849 | $ 573 | $ 1,527 | $ 892 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) | 6 Months Ended |
Jun. 28, 2019shares | |
Stockholders Equity Note [Line Items] | |
Estimated forfeiture rate | 8.00% |
Omnibus Plan | |
Stockholders Equity Note [Line Items] | |
Share-based compensation arrangement by share-based payment award, expiration period | 10 years |
Omnibus Plan | Employee Stock Option | |
Stockholders Equity Note [Line Items] | |
Share-based compensation arrangement by share-based payment award, vesting period | 3 years |
Omnibus Plan | Restricted Stock | |
Stockholders Equity Note [Line Items] | |
Share-based compensation arrangement by share-based payment award, number of shares available for grant | 1,639,474 |
Omnibus Plan | Restricted Stock | Minimum | |
Stockholders Equity Note [Line Items] | |
Share-based compensation arrangement by share-based payment award, vesting period | 1 year |
Omnibus Plan | Restricted Stock | Maximum | |
Stockholders Equity Note [Line Items] | |
Share-based compensation arrangement by share-based payment award, vesting period | 3 years |
Stockholders' Equity - Schedu_3
Stockholders' Equity - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 28, 2019 | Jun. 29, 2018 | |
Stockholders Equity Note [Abstract] | ||||
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Expected volatility | 53.00% | 53.00% | 53.00% | 53.00% |
Risk-free interest rate | 2.05% | 2.81% | 2.41% | 2.70% |
Expected term (in years) | 5 years 8 months 1 day | 5 years 8 months 19 days | 5 years 8 months 1 day | 5 years 8 months 19 days |
Stockholders' Equity - Schedu_4
Stockholders' Equity - Schedule of Share-based Compensation, Stock Options, Activity (Details) - $ / shares shares in Thousands | 6 Months Ended |
Jun. 28, 2019 | |
Stockholders Equity Note [Abstract] | |
Options, Outstanding at December 28, 2018 | 3,920 |
Options, Granted, Shares | 801 |
Options, Exercised, Shares | (126) |
Options, Forfeited or expired, Shares | (16) |
Options,Outstanding at June 28, 2019 | 4,579 |
Options, Exercisable at June 28, 2019 | 3,026 |
Minimum Exercise Price | $ 3.50 |
Maximum Exercise Price | $ 43.84 |
Stockholders' Equity - Schedu_5
Stockholders' Equity - Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity (Details) shares in Thousands | 6 Months Ended |
Jun. 28, 2019shares | |
Restricted Stock | |
Schedule Of Restricted Stock And Restricted Stock Units [Line Items] | |
Unvested at December 28, 2018 | 11 |
Granted | 11 |
Vested | (11) |
Unvested at June 28, 2019 | 11 |
Restricted Stock Units (RSUs) | |
Schedule Of Restricted Stock And Restricted Stock Units [Line Items] | |
Unvested at December 28, 2018 | 322 |
Granted | 19 |
Vested | (202) |
Forfeited or expired | (5) |
Unvested at June 28, 2019 | 134 |
Basic and Diluted Net Income _3
Basic and Diluted Net Income Per Share - Summary of Computation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 28, 2019 | Jun. 29, 2018 | |
Numerator: | ||||
Net income | $ 3,914 | $ 1,830 | $ 5,281 | $ 2,413 |
Weighted average common shares: | ||||
Common shares outstanding | 44,489 | 41,734 | 44,368 | 41,579 |
Less: Unvested restricted stock | (10) | (11) | (11) | (11) |
Denominator for basic calculation | 44,479 | 41,723 | 44,357 | 41,568 |
Weighted average effects of potentially diluted common stock: | ||||
Diluted | 46,733 | 43,999 | 46,842 | 43,654 |
Net income per share: | ||||
Basic | $ 0.09 | $ 0.04 | $ 0.12 | $ 0.06 |
Diluted | $ 0.08 | $ 0.04 | $ 0.11 | $ 0.06 |
Employee Stock Option | ||||
Weighted average effects of potentially diluted common stock: | ||||
Diluted | 2,149 | 2,037 | 2,292 | 1,800 |
Unvested Restricted Stock | ||||
Weighted average effects of potentially diluted common stock: | ||||
Diluted | 97 | 17 | 185 | 17 |
Restricted Stock Units | ||||
Weighted average effects of potentially diluted common stock: | ||||
Diluted | 8 | 222 | 8 | 269 |
Basic and Diluted Net Income _4
Basic and Diluted Net Income Per Share - Schedule of Anti-dilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 28, 2019 | Jun. 29, 2018 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share, Amount | 1,992 | 556 | 1,256 | 540 |
Employee Stock Options | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share, Amount | 1,991 | 554 | 1,256 | 539 |
Restricted Stock and Restricted Stock Units | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share, Amount | 1 | 2 | 1 |
Disaggregation of Sales, Geog_3
Disaggregation of Sales, Geographic Sales and Product Sales - Disaggregation of Sales (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 28, 2019 | Jun. 29, 2018 | |
Total net sales | $ 39,664 | $ 33,905 | $ 72,247 | $ 60,998 |
Non Consignment Sales [Member] | ||||
Total net sales | 35,556 | 29,661 | 63,822 | 51,842 |
Consignment Sales [Member] | ||||
Total net sales | $ 4,108 | $ 4,244 | $ 8,425 | $ 9,156 |
Disaggregation of Sales, Geog_4
Disaggregation of Sales, Geographic Sales and Product Sales - Additional Information (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 28, 2019Country | Jun. 29, 2018 | Jun. 28, 2019CountrySegment | Jun. 29, 2018 | Dec. 28, 2018 | |
Geographic and Product Data [Line Items] | |||||
Number of countries in which Company operates | Country | 75 | 75 | |||
Number of operating segments | Segment | 1 | ||||
Sales Revenue, Net | Customer One [Member] | |||||
Geographic and Product Data [Line Items] | |||||
Concentration risk, percentage | 49.00% | 41.00% | 43.00% | 36.00% | |
Sales Revenue, Net | Geographic Concentration Risk [Member] | Other than China and Japan [Member] | Maximum | |||||
Geographic and Product Data [Line Items] | |||||
Concentration risk, percentage | 10.00% | ||||
Sales Revenue, Net | Product Concentration Risk [Member] | Ophthalmic Surgical Product [Member] | |||||
Geographic and Product Data [Line Items] | |||||
Concentration risk, percentage | 100.00% | ||||
Accounts Receivable [Member] | Customer One [Member] | |||||
Geographic and Product Data [Line Items] | |||||
Concentration risk, percentage | 48.00% | 37.00% |
Disaggregation of Sales, Geog_5
Disaggregation of Sales, Geographic Sales and Product Sales - Net Sales by Geographic Areas (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 28, 2019 | Jun. 29, 2018 | ||
Geographic And Sales [Line Items] | |||||
Total net sales | $ 39,664 | $ 33,905 | $ 72,247 | $ 60,998 | |
Geographic Distribution, Domestic [Member] | |||||
Geographic And Sales [Line Items] | |||||
Total net sales | 2,114 | 1,895 | 4,066 | 3,651 | |
Geographic Distribution, Foreign [Member] | |||||
Geographic And Sales [Line Items] | |||||
Total net sales | 37,550 | 32,010 | 68,181 | 57,347 | |
China [Member] | |||||
Geographic And Sales [Line Items] | |||||
Total net sales | 19,394 | 13,965 | 31,165 | 21,875 | |
JAPAN | |||||
Geographic And Sales [Line Items] | |||||
Total net sales | 6,275 | 6,692 | 11,794 | 11,775 | |
Other [Member] | |||||
Geographic And Sales [Line Items] | |||||
Total net sales | [1] | $ 13,995 | $ 13,248 | $ 29,288 | $ 27,348 |
[1] | No other location individually exceeds 10% of the total sales. |
Disaggregation of Sales, Geog_6
Disaggregation of Sales, Geographic Sales and Product Sales - Net Sales by Products and Services (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 28, 2019 | Jun. 29, 2018 | |
Product Information [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | $ 5,232 | $ 6,613 | $ 10,029 | $ 12,548 |
Total net sales | 39,664 | 33,905 | 72,247 | 60,998 |
ICLs [Member] | ||||
Product Information [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | 34,432 | 27,292 | 62,218 | 48,450 |
IOLs [Member] | ||||
Product Information [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | 3,874 | 4,186 | 7,891 | 8,244 |
Other surgical products [Member] | ||||
Product Information [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | $ 1,358 | $ 2,427 | $ 2,138 | $ 4,304 |