2017 Q3 Form 10-Q Financial Statement

#000093755617000214 Filed on October 31, 2017

View on sec.gov

Income Statement

Concept 2017 Q3 2016 Q4
Revenue $193.4M $183.2M
YoY Change 12.0% 20.07%
Cost Of Revenue $69.30M $57.50M
YoY Change 20.51% 14.21%
Gross Profit $124.1M $124.3M
YoY Change 7.76% 21.61%
Gross Profit Margin 64.16% 67.86%
Selling, General & Admin $65.70M $57.85M
YoY Change 2.84% -2.96%
% of Gross Profit 52.96% 46.53%
Research & Development $15.30M $15.67M
YoY Change 3.25% 8.2%
% of Gross Profit 12.33% 12.61%
Depreciation & Amortization $3.800M $4.300M
YoY Change -5.0% 10.26%
% of Gross Profit 3.06% 3.46%
Operating Expenses $81.00M $73.52M
YoY Change 2.92% -0.77%
Operating Profit $43.06M $310.4M
YoY Change 18.21% 1003.06%
Interest Expense
YoY Change
% of Operating Profit
Other Income/Expense, Net $287.0K -$546.0K
YoY Change -39.07% -48.0%
Pretax Income $43.35M $36.06M
YoY Change 17.47% 33.1%
Income Tax $7.495M $8.285M
% Of Pretax Income 17.29% 22.98%
Net Earnings $35.85M $215.3M
YoY Change 19.42% 1014.06%
Net Earnings / Revenue 18.54% 117.52%
Basic Earnings Per Share $0.69 $4.31
Diluted Earnings Per Share $0.64 $3.97
COMMON SHARES
Basic Shares Outstanding 52.08M shares 49.48M shares
Diluted Shares Outstanding 56.16M shares 53.57M shares

Balance Sheet

Concept 2017 Q3 2016 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $331.4M $126.0M
YoY Change 185.44% 21.62%
Cash & Equivalents $289.9M $306.0M
Short-Term Investments
Other Short-Term Assets $46.84M $26.07M
YoY Change 103.71% -29.95%
Inventory $99.08M $72.54M
Prepaid Expenses $15.11M $13.05M
Receivables $110.6M $101.7M
Other Receivables $8.300M $7.800M
Total Short-Term Assets $546.5M $507.2M
YoY Change 84.64% 70.47%
LONG-TERM ASSETS
Property, Plant & Equipment $164.6M $136.0M
YoY Change 23.71% 5.78%
Goodwill $20.68M $19.78M
YoY Change 1.43% -3.29%
Intangibles $27.49M $29.38M
YoY Change -2.74% 5.35%
Long-Term Investments $200.0K
YoY Change
Other Assets $11.35M $9.223M
YoY Change -7.36% -18.51%
Total Long-Term Assets $359.6M $313.3M
YoY Change 17.24% 11.8%
TOTAL ASSETS
Total Short-Term Assets $546.5M $507.2M
Total Long-Term Assets $359.6M $313.3M
Total Assets $906.1M $820.5M
YoY Change 50.34% 42.01%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $40.25M $34.34M
YoY Change 31.07% 19.49%
Accrued Expenses $40.19M $28.27M
YoY Change 50.07% 17.31%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $100.0K
YoY Change 0.0%
Total Short-Term Liabilities $172.5M $220.4M
YoY Change 43.19% 97.15%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $152.5M
YoY Change -100.0% -19.78%
Other Long-Term Liabilities $292.0K $14.59M
YoY Change 873.33% 98.68%
Total Long-Term Liabilities $292.0K $14.59M
YoY Change 873.33% 98.68%
TOTAL LIABILITIES
Total Short-Term Liabilities $172.5M $220.4M
Total Long-Term Liabilities $292.0K $14.59M
Total Liabilities $188.8M $260.3M
YoY Change -38.61% -15.91%
SHAREHOLDERS EQUITY
Retained Earnings $720.5M $589.2M
YoY Change 108.13% 122.8%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost) $449.5M $404.3M
YoY Change 11.2% 27.91%
Treasury Stock Shares 14.79K shares 15.06M shares
Shareholders Equity $717.3M $560.2M
YoY Change
Total Liabilities & Shareholders Equity $906.1M $820.5M
YoY Change 50.34% 42.01%

Cashflow Statement

Concept 2017 Q3 2016 Q4
OPERATING ACTIVITIES
Net Income $35.85M $215.3M
YoY Change 19.42% 1014.06%
Depreciation, Depletion And Amortization $3.800M $4.300M
YoY Change -5.0% 10.26%
Cash From Operating Activities -$29.20M $31.30M
YoY Change -177.04% 15.5%
INVESTING ACTIVITIES
Capital Expenditures -$4.900M -$5.600M
YoY Change -18.33% -66.47%
Acquisitions
YoY Change
Other Investing Activities -$1.100M -$200.0K
YoY Change
Cash From Investing Activities -$4.900M -$5.800M
YoY Change -16.95% -65.27%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 20.90M -15.40M
YoY Change -138.21% -41.22%
NET CHANGE
Cash From Operating Activities -29.20M 31.30M
Cash From Investing Activities -4.900M -5.800M
Cash From Financing Activities 20.90M -15.40M
Net Change In Cash -13.20M 10.10M
YoY Change -41.85% -163.92%
FREE CASH FLOW
Cash From Operating Activities -$29.20M $31.30M
Capital Expenditures -$4.900M -$5.600M
Free Cash Flow -$24.30M $36.90M
YoY Change -155.35% -15.75%

Facts In Submission

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27489000 USD
us-gaap Gain Loss On Sale Of Property Plant Equipment
GainLossOnSaleOfPropertyPlantEquipment
-478000 USD
us-gaap Gain Loss On Sale Of Property Plant Equipment
GainLossOnSaleOfPropertyPlantEquipment
-420000 USD
CY2016Q4 us-gaap Goodwill
Goodwill
19780000 USD
CY2017Q3 us-gaap Goodwill
Goodwill
20676000 USD
CY2016Q4 us-gaap Goodwill And Intangible Asset Impairment
GoodwillAndIntangibleAssetImpairment
0 USD
us-gaap Goodwill And Intangible Asset Impairment
GoodwillAndIntangibleAssetImpairment
0 USD
CY2017Q3 us-gaap Goodwill And Intangible Asset Impairment
GoodwillAndIntangibleAssetImpairment
0 USD
us-gaap Goodwill And Intangible Asset Impairment
GoodwillAndIntangibleAssetImpairment
0 USD
CY2016Q4 us-gaap Gross Profit
GrossProfit
110122000 USD
us-gaap Gross Profit
GrossProfit
339470000 USD
CY2017Q3 us-gaap Gross Profit
GrossProfit
128665000 USD
us-gaap Gross Profit
GrossProfit
381235000 USD
CY2016Q4 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
36058000 USD
us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
110793000 USD
CY2017Q3 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
48262000 USD
us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
139356000 USD
CY2016Q4 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
8285000 USD
us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
25420000 USD
CY2017Q3 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
9027000 USD
us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
8108000 USD
us-gaap Income Taxes Paid
IncomeTaxesPaid
25753000 USD
us-gaap Income Taxes Paid
IncomeTaxesPaid
86759000 USD
us-gaap Increase Decrease In Accounts Payable
IncreaseDecreaseInAccountsPayable
9386000 USD
us-gaap Increase Decrease In Accounts Payable
IncreaseDecreaseInAccountsPayable
3748000 USD
us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
13398000 USD
us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
17277000 USD
us-gaap Increase Decrease In Accrued Liabilities
IncreaseDecreaseInAccruedLiabilities
-384000 USD
us-gaap Increase Decrease In Accrued Liabilities
IncreaseDecreaseInAccruedLiabilities
-66918000 USD
us-gaap Increase Decrease In Deferred Charges
IncreaseDecreaseInDeferredCharges
11278000 USD
us-gaap Increase Decrease In Deferred Charges
IncreaseDecreaseInDeferredCharges
16166000 USD
us-gaap Increase Decrease In Deferred Revenue
IncreaseDecreaseInDeferredRevenue
10934000 USD
us-gaap Increase Decrease In Deferred Revenue
IncreaseDecreaseInDeferredRevenue
-5905000 USD
us-gaap Increase Decrease In Employee Related Liabilities
IncreaseDecreaseInEmployeeRelatedLiabilities
-810000 USD
us-gaap Increase Decrease In Employee Related Liabilities
IncreaseDecreaseInEmployeeRelatedLiabilities
-9094000 USD
us-gaap Increase Decrease In Inventories
IncreaseDecreaseInInventories
5092000 USD
us-gaap Increase Decrease In Inventories
IncreaseDecreaseInInventories
25998000 USD
us-gaap Increase Decrease In Other Current Assets
IncreaseDecreaseInOtherCurrentAssets
12911000 USD
us-gaap Increase Decrease In Other Current Assets
IncreaseDecreaseInOtherCurrentAssets
11099000 USD
us-gaap Increase Decrease In Other Noncurrent Assets
IncreaseDecreaseInOtherNoncurrentAssets
2117000 USD
us-gaap Increase Decrease In Other Noncurrent Assets
IncreaseDecreaseInOtherNoncurrentAssets
964000 USD
us-gaap Increase Decrease In Other Operating Liabilities
IncreaseDecreaseInOtherOperatingLiabilities
1072000 USD
us-gaap Increase Decrease In Other Operating Liabilities
IncreaseDecreaseInOtherOperatingLiabilities
1456000 USD
CY2016Q4 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
4088000 shares
us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
3451000 shares
CY2017Q3 us-gaap Inventory Raw Materials Net Of Reserves
InventoryRawMaterialsNetOfReserves
42023000 USD
CY2016Q4 us-gaap Inventory Work In Process Net Of Reserves
InventoryWorkInProcessNetOfReserves
7701000 USD
CY2017Q3 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
4084000 shares
us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
4498000 shares
CY2016Q4 us-gaap Intangible Assets Net Excluding Goodwill
IntangibleAssetsNetExcludingGoodwill
29376000 USD
CY2017Q3 us-gaap Intangible Assets Net Excluding Goodwill
IntangibleAssetsNetExcludingGoodwill
27489000 USD
us-gaap Interest Paid Net
InterestPaidNet
2603000 USD
CY2016Q4 us-gaap Inventory Finished Goods Net Of Reserves
InventoryFinishedGoodsNetOfReserves
32194000 USD
CY2017Q3 us-gaap Inventory Finished Goods Net Of Reserves
InventoryFinishedGoodsNetOfReserves
48838000 USD
CY2016Q4 us-gaap Inventory Net
InventoryNet
72542000 USD
CY2017Q3 us-gaap Inventory Net
InventoryNet
99078000 USD
CY2016Q4 us-gaap Inventory Raw Materials Net Of Reserves
InventoryRawMaterialsNetOfReserves
32647000 USD
CY2017Q3 us-gaap Inventory Work In Process Net Of Reserves
InventoryWorkInProcessNetOfReserves
8217000 USD
CY2016Q4 us-gaap Lease And Rental Expense
LeaseAndRentalExpense
1600000 USD
us-gaap Lease And Rental Expense
LeaseAndRentalExpense
4500000 USD
CY2017Q3 us-gaap Lease And Rental Expense
LeaseAndRentalExpense
1700000 USD
us-gaap Lease And Rental Expense
LeaseAndRentalExpense
5000000 USD
CY2017Q3 us-gaap Letters Of Credit Outstanding Amount
LettersOfCreditOutstandingAmount
300000 USD
CY2016Q4 us-gaap Liabilities
Liabilities
260289000 USD
CY2017Q3 us-gaap Liabilities
Liabilities
188789000 USD
CY2016Q4 us-gaap Liabilities And Stockholders Equity
LiabilitiesAndStockholdersEquity
820525000 USD
CY2017Q3 us-gaap Liabilities And Stockholders Equity
LiabilitiesAndStockholdersEquity
906071000 USD
CY2016Q4 us-gaap Liabilities Current
LiabilitiesCurrent
220366000 USD
CY2017Q3 us-gaap Liabilities Current
LiabilitiesCurrent
172469000 USD
CY2017Q3 us-gaap Lines Of Credit Current
LinesOfCreditCurrent
0 USD
CY2017Q3 us-gaap Loss Contingency Estimate Of Possible Loss
LossContingencyEstimateOfPossibleLoss
8600000 USD
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
-75348000 USD
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
13030000 USD
us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-18629000 USD
us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-41195000 USD
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
88030000 USD
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
9027000 USD
CY2016Q4 us-gaap Net Income Loss
NetIncomeLoss
27773000 USD
us-gaap Net Income Loss
NetIncomeLoss
85373000 USD
CY2017Q3 us-gaap Net Income Loss
NetIncomeLoss
39235000 USD
us-gaap Net Income Loss
NetIncomeLoss
131248000 USD
CY2016Q4 us-gaap Noncurrent Assets
NoncurrentAssets
225167000 USD
CY2017Q3 us-gaap Noncurrent Assets
NoncurrentAssets
272397000 USD
CY2016Q4 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
-546000 USD
us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
423000 USD
CY2017Q3 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
287000 USD
us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
1319000 USD
CY2016Q4 us-gaap Operating Expenses
OperatingExpenses
73518000 USD
us-gaap Operating Expenses
OperatingExpenses
229100000 USD
CY2017Q3 us-gaap Operating Expenses
OperatingExpenses
80690000 USD
us-gaap Operating Expenses
OperatingExpenses
243198000 USD
CY2016Q4 us-gaap Operating Income Loss
OperatingIncomeLoss
36604000 USD
us-gaap Operating Income Loss
OperatingIncomeLoss
110370000 USD
CY2017Q3 us-gaap Operating Income Loss
OperatingIncomeLoss
47975000 USD
us-gaap Operating Income Loss
OperatingIncomeLoss
138037000 USD
CY2017Q3 us-gaap Operating Leases Future Minimum Payments Due
OperatingLeasesFutureMinimumPaymentsDue
26415000 USD
CY2017Q3 us-gaap Operating Leases Future Minimum Payments Due In Five Years
OperatingLeasesFutureMinimumPaymentsDueInFiveYears
2615000 USD
CY2017Q3 us-gaap Operating Leases Future Minimum Payments Due In Four Years
OperatingLeasesFutureMinimumPaymentsDueInFourYears
3165000 USD
CY2017Q3 us-gaap Operating Leases Future Minimum Payments Due In Three Years
OperatingLeasesFutureMinimumPaymentsDueInThreeYears
5363000 USD
CY2017Q3 us-gaap Operating Leases Future Minimum Payments Due In Two Years
OperatingLeasesFutureMinimumPaymentsDueInTwoYears
6347000 USD
CY2017Q3 us-gaap Operating Leases Future Minimum Payments Due Thereafter
OperatingLeasesFutureMinimumPaymentsDueThereafter
7284000 USD
CY2017Q3 us-gaap Operating Leases Future Minimum Payments Remainder Of Fiscal Year
OperatingLeasesFutureMinimumPaymentsRemainderOfFiscalYear
1641000 USD
CY2016Q4 us-gaap Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
5337000 USD
CY2017Q3 us-gaap Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
4756000 USD
CY2016Q4 us-gaap Other Assets Current
OtherAssetsCurrent
27048000 USD
CY2017Q3 us-gaap Other Assets Current
OtherAssetsCurrent
46844000 USD
CY2016Q4 us-gaap Other Assets Miscellaneous Current
OtherAssetsMiscellaneousCurrent
5134000 USD
CY2017Q3 us-gaap Other Assets Miscellaneous Current
OtherAssetsMiscellaneousCurrent
5377000 USD
CY2016Q4 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
9223000 USD
CY2017Q3 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
11354000 USD
CY2017Q3 us-gaap Other Commitment
OtherCommitment
300000 USD
CY2016Q4 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
-470000 USD
us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
-280000 USD
CY2017Q3 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
1405000 USD
us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
4270000 USD
CY2016Q4 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
247000 USD
CY2017Q3 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
292000 USD
us-gaap Other Tax Expense Benefit
OtherTaxExpenseBenefit
7700000 USD
us-gaap Other Tax Expense Benefit
OtherTaxExpenseBenefit
35100000 USD
us-gaap Payments For Repurchase Of Common Stock
PaymentsForRepurchaseOfCommonStock
68218000 USD
us-gaap Payments For Repurchase Of Common Stock
PaymentsForRepurchaseOfCommonStock
42608000 USD
us-gaap Payments Of Debt Issuance Costs
PaymentsOfDebtIssuanceCosts
621000 USD
us-gaap Payments Of Debt Issuance Costs
PaymentsOfDebtIssuanceCosts
0 USD
us-gaap Payments To Acquire Intangible Assets
PaymentsToAcquireIntangibleAssets
3969000 USD
us-gaap Payments To Acquire Intangible Assets
PaymentsToAcquireIntangibleAssets
2220000 USD
us-gaap Payments To Acquire Longterm Investments
PaymentsToAcquireLongtermInvestments
200000 USD
us-gaap Payments To Acquire Longterm Investments
PaymentsToAcquireLongtermInvestments
1145000 USD
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
13697000 USD
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
37830000 USD
CY2016Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.001
CY2017Q3 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.001
CY2016Q4 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
5000000 shares
CY2017Q3 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
5000000 shares
CY2016Q4 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2017Q3 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2016Q4 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
CY2017Q3 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
55709000 USD
CY2016Q1 us-gaap Product Warranty Accrual
ProductWarrantyAccrual
1222000 USD
CY2016Q4 us-gaap Preferred Stock Value Outstanding
PreferredStockValueOutstanding
0 USD
CY2017Q3 us-gaap Preferred Stock Value Outstanding
PreferredStockValueOutstanding
0 USD
CY2016Q4 us-gaap Prepaid Expense Current
PrepaidExpenseCurrent
13051000 USD
CY2017Q3 us-gaap Prepaid Expense Current
PrepaidExpenseCurrent
15113000 USD
CY2016Q4 us-gaap Prepaid Taxes
PrepaidTaxes
981000 USD
CY2017Q3 us-gaap Prepaid Taxes
PrepaidTaxes
9622000 USD
us-gaap Proceeds From Repayments Of Lines Of Credit
ProceedsFromRepaymentsOfLinesOfCredit
45000000 USD
us-gaap Proceeds From Repayments Of Lines Of Credit
ProceedsFromRepaymentsOfLinesOfCredit
0 USD
us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
26063000 USD
CY2016Q4 us-gaap Product Warranty Accrual
ProductWarrantyAccrual
910000 USD
CY2016Q4 us-gaap Product Warranty Accrual
ProductWarrantyAccrual
1292000 USD
CY2017Q3 us-gaap Product Warranty Accrual
ProductWarrantyAccrual
1020000 USD
CY2016Q4 us-gaap Product Warranty Accrual Classified Current
ProductWarrantyAccrualClassifiedCurrent
910000 USD
CY2017Q3 us-gaap Product Warranty Accrual Classified Current
ProductWarrantyAccrualClassifiedCurrent
1220000 USD
us-gaap Product Warranty Accrual Period Increase Decrease
ProductWarrantyAccrualPeriodIncreaseDecrease
722000 USD
us-gaap Product Warranty Accrual Period Increase Decrease
ProductWarrantyAccrualPeriodIncreaseDecrease
712000 USD
us-gaap Product Warranty Accrual Preexisting Increase Decrease
ProductWarrantyAccrualPreexistingIncreaseDecrease
99000 USD
us-gaap Product Warranty Accrual Preexisting Increase Decrease
ProductWarrantyAccrualPreexistingIncreaseDecrease
-116000 USD
us-gaap Product Warranty Expense
ProductWarrantyExpense
751000 USD
us-gaap Product Warranty Expense
ProductWarrantyExpense
486000 USD
CY2016Q4 us-gaap Profit Loss
ProfitLoss
27773000 USD
us-gaap Profit Loss
ProfitLoss
85373000 USD
CY2017Q3 us-gaap Profit Loss
ProfitLoss
39235000 USD
us-gaap Profit Loss
ProfitLoss
131248000 USD
CY2016Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
204229000 USD
CY2017Q3 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
243698000 USD
CY2016Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
135996000 USD
CY2017Q3 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
164579000 USD
CY2017Q3 us-gaap Purchase Commitment Remaining Minimum Amount Committed
PurchaseCommitmentRemainingMinimumAmountCommitted
81600000 USD
us-gaap Repayments Of Lines Of Credit
RepaymentsOfLinesOfCredit
77500000 USD
us-gaap Repayments Of Lines Of Credit
RepaymentsOfLinesOfCredit
0 USD
us-gaap Repayments Of Long Term Capital Lease Obligations
RepaymentsOfLongTermCapitalLeaseObligations
72000 USD
us-gaap Repayments Of Long Term Capital Lease Obligations
RepaymentsOfLongTermCapitalLeaseObligations
71000 USD
CY2016Q4 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
15673000 USD
us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
44856000 USD
CY2017Q3 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
15300000 USD
us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
45859000 USD
CY2016Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
589226000 USD
CY2017Q3 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
720474000 USD
CY2016Q4 us-gaap Revenues
Revenues
167621000 USD
us-gaap Revenues
Revenues
511424000 USD
CY2017Q3 us-gaap Revenues
Revenues
193692000 USD
us-gaap Revenues
Revenues
572927000 USD
us-gaap Royalty Revenue
RoyaltyRevenue
25700000 USD
CY2016Q4 us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
160286000 USD
us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
488183000 USD
CY2017Q3 us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
181271000 USD
us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
542170000 USD
CY2016Q4 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
57845000 USD
us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
184244000 USD
CY2017Q3 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
65390000 USD
us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
197339000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
9693000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
11192000 USD
CY2016Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0
CY2017Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0
CY2016Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate Maximum
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMaximum
0.356
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate Maximum
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMaximum
0.374
CY2017Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate Maximum
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMaximum
0.319
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate Maximum
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMaximum
0.357
CY2016Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate Minimum
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMinimum
0.323
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate Minimum
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMinimum
0.320
CY2017Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate Minimum
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMinimum
0.303
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate Minimum
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMinimum
0.303
CY2016Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate Maximum
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMaximum
0.018
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate Maximum
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMaximum
0.019
CY2017Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate Maximum
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMaximum
0.013
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate Maximum
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMaximum
0.019
CY2016Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate Minimum
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMinimum
0.015
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate Minimum
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMinimum
0.013
CY2017Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate Minimum
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMinimum
0.010
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate Minimum
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMinimum
0.010
CY2017Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Number Of Shares Available For Grant
ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant
4000000 shares
CY2017Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber
3991000 shares
CY2017Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice
26.26
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercises In Period Total Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue
17400000 USD
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod
220000 shares
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriod
847000 shares
CY2016Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
17.99
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
13.42
CY2017Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
27.70
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
27.74
CY2017Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue
365900000 USD
CY2016Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
8521000 shares
CY2017Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
7139000 shares
CY2016Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
28.56
CY2017Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
35.48
CY2017Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Exercisable Aggregate Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableAggregateIntrinsicValue
240700000 USD
us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Exercises In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice
27.66
us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Forfeitures In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice
36.49
us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice
86.80
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Compensation Cost1
SharebasedCompensationArrangementBySharebasedPaymentAwardCompensationCost1
9700000 USD
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Compensation Cost1
SharebasedCompensationArrangementBySharebasedPaymentAwardCompensationCost1
11200000 USD
CY2016Q4 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P5Y8M12D
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P5Y8M12D
CY2017Q3 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P5Y6M
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P5Y6M
us-gaap Stock Issued During Period Shares Stock Options Exercised
StockIssuedDuringPeriodSharesStockOptionsExercised
2009000 shares
CY2015Q3 us-gaap Stock Repurchase Program Number Of Shares Authorized To Be Repurchased
StockRepurchaseProgramNumberOfSharesAuthorizedToBeRepurchased
5000000.0 shares
CY2017Q3 us-gaap Stock Repurchase Program Remaining Authorized Repurchase Amount1
StockRepurchaseProgramRemainingAuthorizedRepurchaseAmount1
2400000 USD
CY2016Q4 us-gaap Stockholders Equity
StockholdersEquity
560236000 USD
CY2017Q3 us-gaap Stockholders Equity
StockholdersEquity
717282000 USD
CY2016Q4 us-gaap Taxes Payable Current
TaxesPayableCurrent
76316000 USD
CY2017Q3 us-gaap Taxes Payable Current
TaxesPayableCurrent
5179000 USD
CY2016Q4 us-gaap Treasury Stock Shares
TreasuryStockShares
14255 shares
CY2017Q3 us-gaap Treasury Stock Shares
TreasuryStockShares
14788 shares
CY2016Q4 us-gaap Treasury Stock Shares Acquired
TreasuryStockSharesAcquired
0 shares
us-gaap Treasury Stock Shares Acquired
TreasuryStockSharesAcquired
1496000 shares
CY2017Q3 us-gaap Treasury Stock Acquired Average Cost Per Share
TreasuryStockAcquiredAverageCostPerShare
84.86
us-gaap Treasury Stock Acquired Average Cost Per Share
TreasuryStockAcquiredAverageCostPerShare
84.86
CY2017Q3 us-gaap Treasury Stock Shares Acquired
TreasuryStockSharesAcquired
533000 shares
us-gaap Treasury Stock Shares Acquired
TreasuryStockSharesAcquired
533000 shares
CY2016Q4 us-gaap Treasury Stock Acquired Average Cost Per Share
TreasuryStockAcquiredAverageCostPerShare
0
us-gaap Treasury Stock Acquired Average Cost Per Share
TreasuryStockAcquiredAverageCostPerShare
42.39
CY2016Q4 us-gaap Treasury Stock Value
TreasuryStockValue
404276000 USD
CY2017Q3 us-gaap Treasury Stock Value
TreasuryStockValue
449537000 USD
CY2016Q4 us-gaap Treasury Stock Value Acquired Cost Method
TreasuryStockValueAcquiredCostMethod
0 USD
us-gaap Treasury Stock Value Acquired Cost Method
TreasuryStockValueAcquiredCostMethod
63403000 USD
CY2017Q3 us-gaap Treasury Stock Value Acquired Cost Method
TreasuryStockValueAcquiredCostMethod
45261000 USD
us-gaap Treasury Stock Value Acquired Cost Method
TreasuryStockValueAcquiredCostMethod
45261000 USD
CY2017Q3 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
15200000 USD
CY2017Q3 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
UnrecognizedTaxBenefitsThatWouldImpactEffectiveTaxRate
13500000 USD
CY2016Q4 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
53565000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
52837000 shares
CY2017Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
56163000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
55967000 shares
CY2016Q4 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
49477000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
49386000 shares
CY2017Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
52079000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
51469000 shares
us-gaap Fiscal Period
FiscalPeriod
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:17px;text-indent:16px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Fiscal Periods</font></div><div style="line-height:120%;padding-top:6px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company follows a conventional 52/53 week fiscal year. Under a conventional 52/53 week fiscal year, a 52 week fiscal year includes four quarters of 13 fiscal weeks while a 53 week fiscal year includes three 13 fiscal week quarters and one 14 fiscal week quarter. The Company&#8217;s last 53 week fiscal year was fiscal year 2014. Fiscal year </font><font style="font-family:inherit;font-size:10pt;">2017</font><font style="font-family:inherit;font-size:10pt;"> is a 52 week fiscal year. All references to years in these notes to condensed consolidated financial statements are fiscal years unless otherwise noted.</font></div></div>
us-gaap Nature Of Operations
NatureOfOperations
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:17px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;"> Description of the Company</font></div><div style="line-height:120%;padding-top:6px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Masimo Corporation (the Company) is a global medical technology company that develops, manufactures and markets a variety of noninvasive patient monitoring technologies. The Company&#8217;s mission is to improve patient outcomes and reduce cost of care by taking noninvasive monitoring to new sites and applications</font><font style="font-family:inherit;font-size:8pt;"><sup style="vertical-align:top;line-height:120%;font-size:5pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">. The Company&#8217;s patient monitoring solutions generally incorporate a monitor or circuit board, proprietary single-patient use or reusable sensors, software and/or cables. The Company primarily sells its products to hospitals, emergency medical service providers, home care providers, physician offices, veterinarians, long term care facilities and consumers through its direct sales force, distributors and original equipment manufacturer (OEM) partners.</font></div><div style="line-height:120%;padding-top:12px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company invented Masimo Signal Extraction Technology</font><font style="font-family:inherit;font-size:8pt;"><sup style="vertical-align:top;line-height:120%;font-size:5pt">&#174;</sup></font><font style="font-family:inherit;font-size:7pt;"><sup style="vertical-align:top;line-height:120%;font-size:5pt"> </sup></font><font style="font-family:inherit;font-size:10pt;">(SET</font><font style="font-family:inherit;font-size:8pt;"><sup style="vertical-align:top;line-height:120%;font-size:5pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">), which provides the capabilities of </font><font style="font-family:inherit;font-size:10pt;">Measure-through Motion and Low Perfusion</font><font style="font-family:inherit;font-size:8pt;"><sup style="vertical-align:top;line-height:120%;font-size:5pt">&#8482;</sup></font><font style="font-family:inherit;font-size:10pt;"> pulse oximetry to address the primary limitations of conventional pulse oximetry. Over the years, the Company&#8217;s product offerings have expanded significantly to also include noninvasive optical blood constituent monitoring, optical organ oximetry monitoring, electrical brain function monitoring, acoustic respiration monitoring and optical gas monitoring. The Company also developed the Root</font><font style="font-family:inherit;font-size:8pt;"><sup style="vertical-align:top;line-height:120%;font-size:5pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;"> patient monitoring and connectivity platform and the Masimo Patient SafetyNet</font><font style="font-family:inherit;font-size:8pt;"><sup style="vertical-align:top;line-height:120%;font-size:5pt">1</sup></font><font style="font-family:inherit;font-size:10pt;"> remote patient surveillance monitoring system. These solutions and related products are based upon Masimo SET</font><font style="font-family:inherit;font-size:8pt;"><sup style="vertical-align:top;line-height:120%;font-size:5pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">, rainbow</font><font style="font-family:inherit;font-size:8pt;"><sup style="vertical-align:top;line-height:120%;font-size:5pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;"> and other proprietary algorithms. These software-based technologies are incorporated into a variety of product platforms depending on customers&#8217; specifications. In addition, these technologies are supported by a substantial intellectual property portfolio that the Company has built through internal development, acquisitions and license agreements.</font></div></div>
us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:17px;text-align:left;padding-left:18px;font-size:12pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Reclassifications</font><font style="font-family:inherit;font-size:12pt;"> </font></div><div style="line-height:120%;padding-top:6px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Certain amounts in the accompanying condensed consolidated financial statements for prior periods have been reclassified to conform to the current period presentation. </font></div></div>
us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:6px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:8pt;"></font><font style="font-family:inherit;font-size:10pt;"> </font></div><div style="line-height:120%;padding-top:17px;text-indent:16px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Use of Estimates</font></div><div style="line-height:120%;padding-top:6px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company prepares its financial statements in conformity with GAAP, which requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates include the determination of accounts receivable allowances, inventory reserves, warranty reserves, rebate accruals, valuation of the Company&#8217;s stock options, goodwill valuation, deferred taxes and any associated valuation allowances, distributor channel inventory, royalty revenues, deferred revenue, uncertain income tax positions, litigation costs and related accruals. Actual results could differ from such estimates.</font></div><div style="line-height:120%;padding-top:17px;text-align:left;padding-left:18px;font-size:12pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;"></font></div></div>

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