2018 Q4 Form 10-Q Financial Statement

#000106918318000114 Filed on November 07, 2018

View on sec.gov

Income Statement

Concept 2018 Q4 2018 Q3 2017 Q3
Revenue $114.8M $104.8M $90.26M
YoY Change 21.28% 16.15% 25.57%
Cost Of Revenue $49.40M $39.20M $40.50M
YoY Change 56.33% -3.2% 59.96%
Gross Profit $65.35M $65.63M $49.77M
YoY Change 3.7% 31.89% 6.87%
Gross Profit Margin 56.93% 62.61% 55.13%
Selling, General & Admin $42.10M $39.69M $36.40M
YoY Change 6.31% 9.03% 29.43%
% of Gross Profit 64.43% 60.47% 73.14%
Research & Development $21.30M $21.98M $14.17M
YoY Change 34.81% 55.17% 92.53%
% of Gross Profit 32.6% 33.49% 28.47%
Depreciation & Amortization $2.390M $3.070M $2.277M
YoY Change 1.27% 34.83% 152.72%
% of Gross Profit 3.66% 4.68% 4.58%
Operating Expenses $63.40M $61.67M $50.56M
YoY Change 14.44% 21.96% 42.52%
Operating Profit $1.946M $3.966M -$799.0K
YoY Change -74.45% -596.37% -107.21%
Interest Expense $1.000M $1.274M $1.430M
YoY Change -266.67% -10.91% -414.29%
% of Operating Profit 51.39% 32.12%
Other Income/Expense, Net
YoY Change
Pretax Income $3.000M $5.240M $631.0K
YoY Change -57.75% 730.43% -94.06%
Income Tax $600.0K -$471.0K $209.0K
% Of Pretax Income 20.0% -8.99% 33.12%
Net Earnings $2.083M $5.711M $422.0K
YoY Change -60.0% 1253.32% -89.02%
Net Earnings / Revenue 1.81% 5.45% 0.47%
Basic Earnings Per Share $0.04 $0.10 $0.01
Diluted Earnings Per Share $0.03 $0.10 $0.01
COMMON SHARES
Basic Shares Outstanding 58.45M shares 58.34M shares 52.83M shares
Diluted Shares Outstanding 59.81M shares 53.84M shares

Balance Sheet

Concept 2018 Q4 2018 Q3 2017 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $349.5M $324.9M $61.80M
YoY Change 326.22% 425.73% -35.76%
Cash & Equivalents $349.5M $324.4M $43.47M
Short-Term Investments $0.00 $500.0K $18.40M
Other Short-Term Assets $30.40M $30.50M $23.00M
YoY Change 40.09% 32.61% 65.47%
Inventory $33.76M $39.22M $52.69M
Prepaid Expenses
Receivables $144.5M $129.8M $51.20M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $558.2M $524.4M $188.7M
YoY Change 172.02% 177.83% 12.05%
LONG-TERM ASSETS
Property, Plant & Equipment $37.89M $35.61M $31.26M
YoY Change 21.56% 13.91% 36.07%
Goodwill $24.98M $25.04M $14.92M
YoY Change 67.35% 67.81% 67.96%
Intangibles $15.94M $16.96M $20.76M
YoY Change -15.34% -18.32% 191.71%
Long-Term Investments $0.00
YoY Change -100.0%
Other Assets $23.00M $23.40M $16.53M
YoY Change 49.67% 41.5% -24.02%
Total Long-Term Assets $161.4M $157.3M $138.9M
YoY Change 21.42% 13.28% 65.81%
TOTAL ASSETS
Total Short-Term Assets $558.2M $524.4M $188.7M
Total Long-Term Assets $161.4M $157.3M $138.9M
Total Assets $719.5M $681.7M $327.6M
YoY Change 112.81% 108.08% 29.9%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $15.16M $8.998M $12.35M
YoY Change 76.49% -27.17% 37.54%
Accrued Expenses $41.09M $36.91M $22.43M
YoY Change 74.84% 64.54% 39.44%
Deferred Revenue $107.0M $89.64M
YoY Change 52.01%
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $166.0M $141.5M $100.1M
YoY Change 53.79% 41.38% 47.69%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $5.704M $80.50M $61.40M
YoY Change 366.01% 31.11% 42.46%
Total Long-Term Liabilities $5.704M $80.50M $61.40M
YoY Change 366.01% 31.11% 42.46%
TOTAL LIABILITIES
Total Short-Term Liabilities $166.0M $141.5M $100.1M
Total Long-Term Liabilities $5.704M $80.50M $61.40M
Total Liabilities $252.2M $222.0M $161.5M
YoY Change 47.78% 37.46% 45.69%
SHAREHOLDERS EQUITY
Retained Earnings $171.4M $169.3M $125.3M
YoY Change 39.13% 35.16% 11.9%
Common Stock $453.4M $447.9M $198.0M
YoY Change 124.82% 126.25% 7.05%
Preferred Stock
YoY Change
Treasury Stock (at cost) $155.9M $155.9M $155.9M
YoY Change 0.0% 0.0% 0.0%
Treasury Stock Shares 20.22M shares 20.22M shares 20.22M shares
Shareholders Equity $467.3M $459.7M $166.1M
YoY Change
Total Liabilities & Shareholders Equity $719.5M $681.7M $327.6M
YoY Change 112.81% 108.08% 29.9%

Cashflow Statement

Concept 2018 Q4 2018 Q3 2017 Q3
OPERATING ACTIVITIES
Net Income $2.083M $5.711M $422.0K
YoY Change -60.0% 1253.32% -89.02%
Depreciation, Depletion And Amortization $2.390M $3.070M $2.277M
YoY Change 1.27% 34.83% 152.72%
Cash From Operating Activities $31.24M $16.53M $6.610M
YoY Change 28.45% 150.08% -43.12%
INVESTING ACTIVITIES
Capital Expenditures -$4.360M -$2.420M $3.331M
YoY Change 124.74% -172.65% 142.96%
Acquisitions
YoY Change
Other Investing Activities $500.0K $3.650M $11.10M
YoY Change -95.64% -67.12% 413.89%
Cash From Investing Activities -$3.860M $1.230M $7.510M
YoY Change -140.5% -83.62% 1073.44%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -2.810M -1.040M -250.0K
YoY Change 25.45% 316.0% -134.72%
NET CHANGE
Cash From Operating Activities 31.24M 16.53M 6.610M
Cash From Investing Activities -3.860M 1.230M 7.510M
Cash From Financing Activities -2.810M -1.040M -250.0K
Net Change In Cash 24.57M 16.72M 13.87M
YoY Change -22.27% 20.55% 6.86%
FREE CASH FLOW
Cash From Operating Activities $31.24M $16.53M $6.610M
Capital Expenditures -$4.360M -$2.420M $3.331M
Free Cash Flow $35.60M $18.95M $3.279M
YoY Change 35.57% 477.92% -68.01%

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us-gaap Earnings Per Share Diluted
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us-gaap Earnings Per Share Diluted
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0.47
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703000 USD
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us-gaap Effective Income Tax Rate Continuing Operations
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us-gaap Effective Income Tax Rate Reconciliation Tax Contingencies
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CY2018Q3 us-gaap Escrow Deposit
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CY2018Q3 us-gaap Finite Lived Intangible Assets Accumulated Amortization
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3357000 USD
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0 USD
us-gaap Gain Loss On Disposition Of Assets
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us-gaap Gross Profit
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us-gaap Gross Profit
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6000 USD
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us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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5240000 USD
us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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25090000 USD
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us-gaap Income Tax Expense Benefit
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us-gaap Income Tax Expense Benefit
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2200000 USD
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us-gaap Income Taxes Paid Net
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7957000 USD
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31700000 USD
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us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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us-gaap Interest Income Expense Nonoperating Net
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55 lawsuit
CY2018Q3 us-gaap Loss Contingency Pending Claims Number
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us-gaap Net Cash Provided By Used In Financing Activities
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us-gaap Net Cash Provided By Used In Financing Activities
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us-gaap Net Cash Provided By Used In Investing Activities
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us-gaap Net Cash Provided By Used In Investing Activities
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us-gaap Net Cash Provided By Used In Operating Activities
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us-gaap Net Cash Provided By Used In Operating Activities
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32636000 USD
CY2017Q3 us-gaap Net Income Loss
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422000 USD
us-gaap Net Income Loss
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CY2018Q3 us-gaap Net Income Loss
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us-gaap Net Income Loss
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us-gaap Number Of Reportable Segments
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us-gaap Operating Expenses
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CY2018Q3 us-gaap Operating Expenses
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us-gaap Operating Expenses
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us-gaap Operating Income Loss
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5375000 USD
CY2018Q3 us-gaap Operating Income Loss
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3966000 USD
us-gaap Operating Income Loss
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CY2017Q4 us-gaap Other Accrued Liabilities Current
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us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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CY2017Q4 us-gaap Other Liabilities Current
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CY2018Q3 us-gaap Other Liabilities Current
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115000 USD
us-gaap Payments Related To Tax Withholding For Share Based Compensation
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us-gaap Payments Related To Tax Withholding For Share Based Compensation
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us-gaap Payments To Acquire Businesses Net Of Cash Acquired
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10629000 USD
us-gaap Payments To Acquire Property Plant And Equipment
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6880000 USD
CY2017Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
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0.00001
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0.00001
CY2017Q4 us-gaap Preferred Stock Shares Authorized
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CY2017Q3 us-gaap Research And Development Expense
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us-gaap Research And Development Expense
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CY2018Q3 us-gaap Research And Development Expense
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21982000 USD
us-gaap Research And Development Expense
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55602000 USD
us-gaap Payments To Acquire Businesses Net Of Cash Acquired
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4990000 USD
us-gaap Payments To Acquire Intangible Assets
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431000 USD
us-gaap Payments To Acquire Intangible Assets
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460000 USD
us-gaap Payments To Acquire Investments
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19950000 USD
us-gaap Payments To Acquire Investments
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4331000 USD
us-gaap Payments To Acquire Property Plant And Equipment
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9072000 USD
CY2017Q4 us-gaap Preferred Stock Shares Issued
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0 shares
CY2018Q3 us-gaap Preferred Stock Shares Issued
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0 shares
CY2017Q4 us-gaap Preferred Stock Shares Outstanding
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0 shares
CY2018Q3 us-gaap Preferred Stock Shares Outstanding
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0 shares
CY2017Q4 us-gaap Preferred Stock Value
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CY2017Q4 us-gaap Prepaid Expense And Other Assets Current
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CY2018Q2 us-gaap Proceeds From Issuance Of Common Stock
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us-gaap Proceeds From Issuance Of Common Stock
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us-gaap Proceeds From Issuance Of Common Stock
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us-gaap Proceeds From Sale And Maturity Of Marketable Securities
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us-gaap Proceeds From Sale And Maturity Of Marketable Securities
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us-gaap Proceeds From Stock Options Exercised
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CY2016Q4 us-gaap Product Warranty Accrual
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CY2017Q3 us-gaap Product Warranty Accrual
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CY2017Q4 us-gaap Product Warranty Accrual
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CY2018Q3 us-gaap Product Warranty Accrual
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us-gaap Product Warranty Accrual Payments
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us-gaap Product Warranty Accrual Payments
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us-gaap Product Warranty Accrual Preexisting Increase Decrease
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117000 USD
us-gaap Product Warranty Accrual Preexisting Increase Decrease
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699000 USD
CY2017Q4 us-gaap Property Plant And Equipment Net
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CY2017Q4 us-gaap Property Plant And Equipment Owned Accumulated Depreciation
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36447000 USD
CY2018Q3 us-gaap Property Plant And Equipment Owned Accumulated Depreciation
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38599000 USD
us-gaap Repayments Of Long Term Debt
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CY2017Q4 us-gaap Restricted Cash
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CY2018Q3 us-gaap Restricted Cash
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CY2018Q3 us-gaap Retained Earnings Accumulated Deficit
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CY2018Q1 us-gaap Retained Earnings Accumulated Deficit
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us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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CY2018Q3 us-gaap Revenue Remaining Performance Obligation
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P1Y
CY2018Q3 us-gaap Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Period1
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P5Y
CY2018Q3 us-gaap Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Period1
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P7Y
CY2018Q2 us-gaap Sale Of Stock Price Per Share
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53.00
CY2017Q3 us-gaap Selling General And Administrative Expense
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us-gaap Selling General And Administrative Expense
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99079000 USD
CY2018Q3 us-gaap Selling General And Administrative Expense
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39685000 USD
us-gaap Selling General And Administrative Expense
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114787000 USD
CY2017Q3 us-gaap Share Based Compensation
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4000000 USD
us-gaap Share Based Compensation
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us-gaap Share Based Compensation
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us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
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us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
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0.4771
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
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0.0298
CY2018Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Number Of Shares Available For Grant
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1700000 shares
CY2018Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Number
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1100000 shares
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
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P10Y
CY2017Q4 us-gaap Short Term Investments
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CY2018Q3 us-gaap Short Term Investments
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500000 USD
CY2017Q4 us-gaap Stockholders Equity
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167444000 USD
CY2018Q3 us-gaap Stockholders Equity
StockholdersEquity
459662000 USD
CY2018Q1 us-gaap Stockholders Equity
StockholdersEquity
142179000 USD
CY2017Q4 us-gaap Taxes Payable Current
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2558000 USD
CY2018Q3 us-gaap Taxes Payable Current
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4913000 USD
CY2017Q4 us-gaap Treasury Stock Shares
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CY2017Q4 us-gaap Treasury Stock Value
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155947000 USD
CY2018Q3 us-gaap Treasury Stock Value
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155947000 USD
CY2018Q3 us-gaap Unrecognized Tax Benefits
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3800000 USD
CY2018Q3 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
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3600000 USD
CY2017Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
53762000 shares
CY2018Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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us-gaap Weighted Average Number Of Diluted Shares Outstanding
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57254000 shares
CY2017Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
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us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
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CY2018Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
58340000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
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55681000 shares
us-gaap Reclassifications
Reclassifications
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:8px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations.</font></div></div>
us-gaap Use Of Estimates
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:8px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">These unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC. Certain information related to our organization, significant accounting policies and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (&#8220;U.S. GAAP&#8221;) has been condensed or omitted. The accounting policies followed in the preparation of these unaudited condensed consolidated financial statements are consistent with those followed in our annual consolidated financial statements for the year ended </font><font style="font-family:inherit;font-size:10pt;color:#000000;">December&#160;31, 2017</font><font style="font-family:inherit;font-size:10pt;">, as filed on Form 10-K, with the exception of our adoption of certain accounting pronouncements which we describe below and in Note 2. In the opinion of management, these unaudited condensed consolidated financial statements contain all material adjustments, consisting only of normal recurring adjustments, necessary to fairly state our financial position, results of operations and cash flows for the periods presented and the presentations and disclosures herein are adequate when read in conjunction with our Form 10-K for the year ended </font><font style="font-family:inherit;font-size:10pt;color:#000000;">December&#160;31, 2017</font><font style="font-family:inherit;font-size:10pt;">. The results of operations for the </font><font style="font-family:inherit;font-size:10pt;">nine</font><font style="font-family:inherit;font-size:10pt;"> months ended </font><font style="font-family:inherit;font-size:10pt;">September&#160;30, 2018</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">2017</font><font style="font-family:inherit;font-size:10pt;"> are not necessarily indicative of the results to be expected for the full year (or any other period). Significant estimates and assumptions in these unaudited condensed consolidated financial statements include:</font></div><div style="line-height:120%;text-align:justify;font-size:6pt;"><font style="font-family:inherit;font-size:6pt;">&#160;</font></div><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:47px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:23px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">product warranty reserves,</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:47px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:23px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">inventory valuation,</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:47px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:23px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">revenue recognition,</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:47px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:23px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">valuation of goodwill, intangible and long-lived assets,</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:47px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:23px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">recognition, measurement and valuation of current and deferred income taxes,</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:47px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:23px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">stock-based compensation, </font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:47px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:23px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">recognition and measurement of contingencies and accrued litigation expense, and</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:47px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:23px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">fair values of identified tangible and intangible assets acquired and liabilities assumed in business combinations.</font></div></td></tr></table><div style="line-height:120%;padding-top:16px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Actual results could differ materially from those estimates.</font></div></div>

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