2017 Q2 Form 10-Q Financial Statement

#000072050017000045 Filed on August 09, 2017

View on sec.gov

Income Statement

Concept 2017 Q2 2016 Q2
Revenue $47.76M $33.34M
YoY Change 43.24% -16.68%
Cost Of Revenue $32.26M $23.71M
YoY Change 36.05% -20.67%
Gross Profit $15.50M $9.631M
YoY Change 60.96% -4.91%
Gross Profit Margin 32.46% 28.89%
Selling, General & Admin $10.11M $8.665M
YoY Change 16.65% -13.82%
% of Gross Profit 65.2% 89.97%
Research & Development $1.774M $2.078M
YoY Change -14.63% -43.07%
% of Gross Profit 11.44% 21.58%
Depreciation & Amortization $610.0K $1.030M
YoY Change -40.78% 21.18%
% of Gross Profit 3.93% 10.69%
Operating Expenses $11.88M $10.74M
YoY Change 10.6% -21.61%
Operating Profit $3.971M -$602.0K
YoY Change -759.63% -51.22%
Interest Expense -$140.0K -$710.0K
YoY Change -80.28% 3450.0%
% of Operating Profit -3.53%
Other Income/Expense, Net -$34.00K -$265.0K
YoY Change -87.17% 1666.67%
Pretax Income $3.827M -$1.311M
YoY Change -391.91% 4.96%
Income Tax $986.0K $70.00K
% Of Pretax Income 25.76%
Net Earnings $3.287M -$1.209M
YoY Change -371.88% -24.63%
Net Earnings / Revenue 6.88% -3.63%
Basic Earnings Per Share $0.25 -$0.09
Diluted Earnings Per Share $0.25 -$0.09
COMMON SHARES
Basic Shares Outstanding 13.24M shares 13.17M shares
Diluted Shares Outstanding 13.40M shares 13.17M shares

Balance Sheet

Concept 2017 Q2 2016 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $39.20M $28.30M
YoY Change 38.52% 19.41%
Cash & Equivalents $39.16M $28.29M
Short-Term Investments
Other Short-Term Assets $2.954M $4.397M
YoY Change -32.82% 10.84%
Inventory $23.19M $28.39M
Prepaid Expenses
Receivables $24.69M $18.34M
Other Receivables $0.00 $0.00
Total Short-Term Assets $114.4M $90.29M
YoY Change 26.74% -0.08%
LONG-TERM ASSETS
Property, Plant & Equipment $15.08M $16.00M
YoY Change -5.74% -20.18%
Goodwill $11.22M $11.07M
YoY Change 1.37% -26.42%
Intangibles $3.643M $4.284M
YoY Change -14.96% -17.41%
Long-Term Investments $2.831M $2.960M
YoY Change -4.36%
Other Assets $1.026M $1.128M
YoY Change -9.04% -65.82%
Total Long-Term Assets $34.00M $35.87M
YoY Change -5.21% -17.91%
TOTAL ASSETS
Total Short-Term Assets $114.4M $90.29M
Total Long-Term Assets $34.00M $35.87M
Total Assets $148.4M $126.2M
YoY Change 17.66% -5.89%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $22.48M $18.41M
YoY Change 22.12% -7.26%
Accrued Expenses $1.863M $2.070M
YoY Change -10.0% -62.12%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $817.0K $723.0K
YoY Change 13.0% 4.48%
Total Short-Term Liabilities $64.09M $44.85M
YoY Change 42.92% -7.93%
LONG-TERM LIABILITIES
Long-Term Debt $9.732M $9.626M
YoY Change 1.1% 11.68%
Other Long-Term Liabilities $6.500M $6.000M
YoY Change 8.33% 22.45%
Total Long-Term Liabilities $9.732M $9.626M
YoY Change 1.1% 11.68%
TOTAL LIABILITIES
Total Short-Term Liabilities $64.09M $44.85M
Total Long-Term Liabilities $9.732M $9.626M
Total Liabilities $80.34M $60.44M
YoY Change 32.93% -3.24%
SHAREHOLDERS EQUITY
Retained Earnings -$34.02M -$35.54M
YoY Change -4.29% 17.81%
Common Stock $133.0K $132.0K
YoY Change 0.76% 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $70.78M $66.99M
YoY Change
Total Liabilities & Shareholders Equity $148.4M $126.2M
YoY Change 17.66% -5.89%

Cashflow Statement

Concept 2017 Q2 2016 Q2
OPERATING ACTIVITIES
Net Income $3.287M -$1.209M
YoY Change -371.88% -24.63%
Depreciation, Depletion And Amortization $610.0K $1.030M
YoY Change -40.78% 21.18%
Cash From Operating Activities -$650.0K -$3.250M
YoY Change -80.0% -65.35%
INVESTING ACTIVITIES
Capital Expenditures -$150.0K -$250.0K
YoY Change -40.0% -34.21%
Acquisitions
YoY Change
Other Investing Activities $10.00K $0.00
YoY Change
Cash From Investing Activities -$140.0K -$250.0K
YoY Change -44.0% -35.9%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 880.0K 30.00K
YoY Change 2833.33% -94.34%
NET CHANGE
Cash From Operating Activities -650.0K -3.250M
Cash From Investing Activities -140.0K -250.0K
Cash From Financing Activities 880.0K 30.00K
Net Change In Cash 90.00K -3.470M
YoY Change -102.59% -62.45%
FREE CASH FLOW
Cash From Operating Activities -$650.0K -$3.250M
Capital Expenditures -$150.0K -$250.0K
Free Cash Flow -$500.0K -$3.000M
YoY Change -83.33% -66.67%

Facts In Submission

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us-gaap Net Income Loss Attributable To Noncontrolling Interest
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448000 USD
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53091000 USD
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80344000 USD
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LiabilitiesAndStockholdersEquity
118430000 USD
CY2017Q2 us-gaap Liabilities And Stockholders Equity
LiabilitiesAndStockholdersEquity
148439000 USD
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38064000 USD
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64092000 USD
CY2016Q3 us-gaap Liability For Uncertain Tax Positions Noncurrent
LiabilityForUncertainTaxPositionsNoncurrent
5930000 USD
CY2017Q2 us-gaap Liability For Uncertain Tax Positions Noncurrent
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6520000 USD
CY2016Q3 us-gaap Long Term Debt Current
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1134000 USD
us-gaap Number Of Operating Segments
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3 segment
CY2016Q2 us-gaap Operating Income Loss
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-602000 USD
us-gaap Operating Income Loss
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CY2017Q2 us-gaap Operating Income Loss
OperatingIncomeLoss
3971000 USD
us-gaap Operating Income Loss
OperatingIncomeLoss
2388000 USD
CY2016Q3 us-gaap Other Assets Current
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2655000 USD
CY2017Q2 us-gaap Other Assets Current
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2954000 USD
CY2016Q3 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
1095000 USD
CY2017Q2 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
1026000 USD
CY2016Q2 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
-299000 USD
us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
-217000 USD
CY2017Q2 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
740000 USD
us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
118000 USD
CY2016Q3 us-gaap Other Deferred Credits Current
OtherDeferredCreditsCurrent
4709000 USD
CY2017Q2 us-gaap Other Deferred Credits Current
OtherDeferredCreditsCurrent
5449000 USD
CY2016Q2 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
-265000 USD
us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
-434000 USD
CY2016Q2 us-gaap Profit Loss
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-1381000 USD
us-gaap Profit Loss
ProfitLoss
-7808000 USD
CY2017Q2 us-gaap Profit Loss
ProfitLoss
2841000 USD
us-gaap Profit Loss
ProfitLoss
767000 USD
CY2016Q3 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
32737000 USD
CY2017Q2 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
32312000 USD
CY2017Q2 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
-34000 USD
us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
-151000 USD
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
442000 USD
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
355000 USD
CY2016Q2 us-gaap Percentage Of Weighted Average Cost Inventory
PercentageOfWeightedAverageCostInventory
0.50
CY2016Q3 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
100000000 shares
CY2017Q2 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
100000000 shares
CY2016Q3 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2017Q2 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2016Q3 us-gaap Preferred Stock Value
PreferredStockValue
0 USD
CY2017Q2 us-gaap Preferred Stock Value
PreferredStockValue
0 USD
us-gaap Proceeds From Divestiture Of Interest In Consolidated Subsidiaries
ProceedsFromDivestitureOfInterestInConsolidatedSubsidiaries
7012000 USD
us-gaap Proceeds From Divestiture Of Interest In Consolidated Subsidiaries
ProceedsFromDivestitureOfInterestInConsolidatedSubsidiaries
0 USD
us-gaap Proceeds From Income Tax Refunds
ProceedsFromIncomeTaxRefunds
0 USD
us-gaap Proceeds From Income Tax Refunds
ProceedsFromIncomeTaxRefunds
262000 USD
us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
34000 USD
us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
894000 USD
us-gaap Proceeds From Issuance Of Long Term Debt
ProceedsFromIssuanceOfLongTermDebt
1145000 USD
us-gaap Proceeds From Issuance Of Long Term Debt
ProceedsFromIssuanceOfLongTermDebt
384000 USD
us-gaap Proceeds From Sale Of Other Assets1
ProceedsFromSaleOfOtherAssets1
4884000 USD
us-gaap Proceeds From Sale Of Other Assets1
ProceedsFromSaleOfOtherAssets1
0 USD
us-gaap Proceeds From Sale Of Property Plant And Equipment
ProceedsFromSaleOfPropertyPlantAndEquipment
0 USD
us-gaap Proceeds From Sale Of Property Plant And Equipment
ProceedsFromSaleOfPropertyPlantAndEquipment
39000 USD
CY2016Q3 us-gaap Product Warranty Accrual Classified Current
ProductWarrantyAccrualClassifiedCurrent
795000 USD
CY2017Q2 us-gaap Product Warranty Accrual Classified Current
ProductWarrantyAccrualClassifiedCurrent
853000 USD
CY2016Q3 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
15960000 USD
CY2017Q2 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
15080000 USD
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
-143000 USD
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
-898000 USD
CY2016Q3 us-gaap Purchase Obligation
PurchaseObligation
11300000 USD
CY2017Q2 us-gaap Purchase Obligation
PurchaseObligation
44500000 USD
CY2016Q3 us-gaap Receivables Long Term Contracts Or Programs
ReceivablesLongTermContractsOrPrograms
8634000 USD
CY2017Q2 us-gaap Receivables Long Term Contracts Or Programs
ReceivablesLongTermContractsOrPrograms
12157000 USD
us-gaap Repayments Of Long Term Debt
RepaymentsOfLongTermDebt
549000 USD
us-gaap Repayments Of Long Term Debt
RepaymentsOfLongTermDebt
485000 USD
CY2016Q2 us-gaap Research And Development Arrangement With Federal Government Customer Funding To Offset Costs Incurred
ResearchAndDevelopmentArrangementWithFederalGovernmentCustomerFundingToOffsetCostsIncurred
510000 USD
us-gaap Research And Development Arrangement With Federal Government Customer Funding To Offset Costs Incurred
ResearchAndDevelopmentArrangementWithFederalGovernmentCustomerFundingToOffsetCostsIncurred
1202000 USD
CY2017Q2 us-gaap Research And Development Arrangement With Federal Government Customer Funding To Offset Costs Incurred
ResearchAndDevelopmentArrangementWithFederalGovernmentCustomerFundingToOffsetCostsIncurred
351000 USD
us-gaap Research And Development Arrangement With Federal Government Customer Funding To Offset Costs Incurred
ResearchAndDevelopmentArrangementWithFederalGovernmentCustomerFundingToOffsetCostsIncurred
961000 USD
CY2016Q2 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
2078000 USD
us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
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CY2017Q2 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
1774000 USD
CY2017Q2 us-gaap Restricted Cash And Cash Equivalents At Carrying Value
RestrictedCashAndCashEquivalentsAtCarryingValue
4671000 USD
us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
5547000 USD
CY2016Q3 us-gaap Restricted Cash And Cash Equivalents At Carrying Value
RestrictedCashAndCashEquivalentsAtCarryingValue
893000 USD
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-35830000 USD
CY2017Q2 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-34018000 USD
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33342000 USD
us-gaap Sales Revenue Net
SalesRevenueNet
77899000 USD
CY2017Q2 us-gaap Sales Revenue Net
SalesRevenueNet
47760000 USD
us-gaap Sales Revenue Net
SalesRevenueNet
109839000 USD
CY2016Q2 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
8665000 USD
us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
23709000 USD
CY2017Q2 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
10108000 USD
us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
25366000 USD
CY2016Q2 us-gaap Share Based Compensation
ShareBasedCompensation
400000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
1100000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
1059000 USD
CY2017Q2 us-gaap Share Based Compensation
ShareBasedCompensation
400000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
1000000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
978000 USD
CY2016Q2 us-gaap Shipping Handling And Transportation Costs
ShippingHandlingAndTransportationCosts
800000 USD
us-gaap Shipping Handling And Transportation Costs
ShippingHandlingAndTransportationCosts
1600000 USD
CY2017Q2 us-gaap Shipping Handling And Transportation Costs
ShippingHandlingAndTransportationCosts
500000 USD
us-gaap Shipping Handling And Transportation Costs
ShippingHandlingAndTransportationCosts
1400000 USD
CY2015Q3 us-gaap Standard Product Warranty Accrual
StandardProductWarrantyAccrual
793000 USD
CY2016Q2 us-gaap Standard Product Warranty Accrual
StandardProductWarrantyAccrual
745000 USD
CY2016Q3 us-gaap Standard Product Warranty Accrual
StandardProductWarrantyAccrual
795000 USD
CY2017Q2 us-gaap Standard Product Warranty Accrual
StandardProductWarrantyAccrual
853000 USD
us-gaap Standard Product Warranty Accrual Foreign Currency Translation Gain Loss
StandardProductWarrantyAccrualForeignCurrencyTranslationGainLoss
6000 USD
us-gaap Standard Product Warranty Accrual Foreign Currency Translation Gain Loss
StandardProductWarrantyAccrualForeignCurrencyTranslationGainLoss
10000 USD
us-gaap Standard Product Warranty Accrual Payments
StandardProductWarrantyAccrualPayments
624000 USD
us-gaap Standard Product Warranty Accrual Payments
StandardProductWarrantyAccrualPayments
269000 USD
us-gaap Standard Product Warranty Accrual Preexisting Increase Decrease
StandardProductWarrantyAccrualPreexistingIncreaseDecrease
-121000 USD
us-gaap Standard Product Warranty Accrual Preexisting Increase Decrease
StandardProductWarrantyAccrualPreexistingIncreaseDecrease
-582000 USD
us-gaap Standard Product Warranty Accrual Warranties Issued
StandardProductWarrantyAccrualWarrantiesIssued
691000 USD
us-gaap Standard Product Warranty Accrual Warranties Issued
StandardProductWarrantyAccrualWarrantiesIssued
899000 USD
CY2016Q3 us-gaap Stockholders Equity
StockholdersEquity
67057000 USD
CY2017Q2 us-gaap Stockholders Equity
StockholdersEquity
70782000 USD
CY2016Q3 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
65339000 USD
CY2017Q2 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
68095000 USD
CY2016Q3 us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Accrued
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestAccrued
2300000 USD
CY2017Q2 us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Accrued
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestAccrued
2600000 USD
CY2016Q3 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
UnrecognizedTaxBenefitsThatWouldImpactEffectiveTaxRate
3900000 USD
CY2017Q2 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
UnrecognizedTaxBenefitsThatWouldImpactEffectiveTaxRate
3900000 USD
CY2016Q2 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
0 shares
us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
0 shares
CY2017Q2 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
156000 shares
us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
85000 shares
CY2016Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
13173000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
13165000 shares
CY2017Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
13398000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
13288000 shares
CY2016Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
13173000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
13165000 shares
CY2017Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
13242000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
13203000 shares
us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Concentrations of Credit Risk </font><font style="font-family:inherit;font-size:10pt;">&#8211; Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash and trade accounts receivable. Our customers consist of solar cell and semiconductor manufacturers worldwide, as well as the lapping and polishing marketplace. Credit risk is managed by performing ongoing credit evaluations of our customers&#8217; financial condition, by requiring significant deposits where appropriate, and by actively monitoring collections. Letters of credit are required of certain customers depending on the size of the order, type of customer or its creditworthiness, and country of domicile. Reserves for potentially uncollectible receivables are maintained based on an assessment of collectability.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We maintain our cash, cash equivalents and restricted cash in multiple financial institutions. As of </font><font style="font-family:inherit;font-size:10pt;">June&#160;30, 2017</font><font style="font-family:inherit;font-size:10pt;">, approximately </font><font style="font-family:inherit;font-size:10pt;">48%</font><font style="font-family:inherit;font-size:10pt;"> of our total cash balances are primarily invested in U.S. Treasuries or are in financial institutions insured by the Federal Deposit Insurance Corporation (&#8220;FDIC&#8221;). The remainder of our cash is maintained with financial institutions with reputable credit ratings in The Netherlands, France and China.</font></div></div>
us-gaap Revenue Recognition Deferred Revenue
RevenueRecognitionDeferredRevenue
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Deferred Profit</font><font style="font-family:inherit;font-size:10pt;"> &#8211; Revenue deferred pursuant to our revenue recognition policy, net of the related deferred costs, if any, is recorded as deferred profit in current liabilities.</font></div></div>
us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Use of Estimates</font><font style="font-family:inherit;font-size:10pt;"> &#8211; The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></div>

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