2016 Q4 Form 10-K Financial Statement

#000116944517000002 Filed on March 15, 2017

View on sec.gov

Income Statement

Concept 2016 Q4 2015 Q4 2015 Q3
Revenue $64.55M $44.23M $44.62M
YoY Change 45.94% -4.4% -16.33%
Cost Of Revenue $31.06M $21.66M $21.89M
YoY Change 43.4% -20.28% -22.01%
Gross Profit $33.49M $22.57M $22.73M
YoY Change 48.39% 18.16% -10.03%
Gross Profit Margin 51.88% 51.03% 50.94%
Selling, General & Admin $17.84M $14.44M $14.91M
YoY Change 23.55% 48.1% 34.52%
% of Gross Profit 53.27% 63.98% 65.61%
Research & Development $8.860M $3.520M $3.555M
YoY Change 151.7%
% of Gross Profit 26.45% 15.6% 15.64%
Depreciation & Amortization $3.240M $670.0K $670.0K
YoY Change 383.58% -28.72% -22.99%
% of Gross Profit 9.67% 2.97% 2.95%
Operating Expenses $29.30M $17.97M $18.47M
YoY Change 63.05% 84.5% 66.59%
Operating Profit $4.092M $4.605M $4.261M
YoY Change -11.14% -50.78% -69.94%
Interest Expense -$1.780M $0.00 $0.00
YoY Change
% of Operating Profit -43.5% 0.0% 0.0%
Other Income/Expense, Net $100.0K $70.00K $137.0K
YoY Change 42.86% 16.67% 98.64%
Pretax Income $2.410M $4.680M $4.398M
YoY Change -48.5% -50.27% -69.12%
Income Tax $410.0K $1.280M $859.0K
% Of Pretax Income 17.01% 27.35% 19.53%
Net Earnings $2.001M $3.393M $3.539M
YoY Change -41.03% -49.69% -62.17%
Net Earnings / Revenue 3.1% 7.67% 7.93%
Basic Earnings Per Share $0.15 $0.30 $0.31
Diluted Earnings Per Share $0.15 $0.30 $0.31
COMMON SHARES
Basic Shares Outstanding 13.53M shares 11.30M shares 11.09M shares
Diluted Shares Outstanding 11.09M shares

Balance Sheet

Concept 2016 Q4 2015 Q4 2015 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $2.200M $35.80M $38.50M
YoY Change -93.85% 3.77% 34.15%
Cash & Equivalents $2.220M $24.95M $27.63M
Short-Term Investments $0.00 $10.80M $10.80M
Other Short-Term Assets $3.400M $4.100M $5.500M
YoY Change -17.07% -6.82% 12.24%
Inventory $1.697M $1.495M $1.488M
Prepaid Expenses
Receivables $31.81M $22.59M $22.34M
Other Receivables $5.500M $10.60M $12.70M
Total Short-Term Assets $44.55M $74.56M $80.44M
YoY Change -40.25% -8.54% -3.97%
LONG-TERM ASSETS
Property, Plant & Equipment $13.44M $14.35M $15.02M
YoY Change -6.35% -15.77% -12.97%
Goodwill $168.4M $0.00
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $2.300M $500.0K
YoY Change
Total Long-Term Assets $294.6M $18.23M $17.40M
YoY Change 1515.93% 2.37% -1.68%
TOTAL ASSETS
Total Short-Term Assets $44.55M $74.56M $80.44M
Total Long-Term Assets $294.6M $18.23M $17.40M
Total Assets $339.2M $92.79M $97.84M
YoY Change 265.51% -6.58% -3.57%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $6.841M $4.591M $4.814M
YoY Change 49.01% 15.05% 22.88%
Accrued Expenses $11.30M $9.000M $11.30M
YoY Change 25.56% 8.43% 10.78%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $5.817M $0.00
YoY Change
Total Short-Term Liabilities $30.95M $17.42M $20.03M
YoY Change 77.62% -4.07% -5.29%
LONG-TERM LIABILITIES
Long-Term Debt $147.0M $0.00 $0.00
YoY Change
Other Long-Term Liabilities
YoY Change
Total Long-Term Liabilities $147.0M $0.00 $0.00
YoY Change
TOTAL LIABILITIES
Total Short-Term Liabilities $30.95M $17.42M $20.03M
Total Long-Term Liabilities $147.0M $0.00 $0.00
Total Liabilities $181.2M $17.42M $20.00M
YoY Change 939.95% -5.83% -9.91%
SHAREHOLDERS EQUITY
Retained Earnings $10.05M $31.21M $35.05M
YoY Change -67.81% -25.35% -15.45%
Common Stock $147.9M $44.20M $42.78M
YoY Change 234.68% 13.34% 12.97%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $158.0M $75.37M $77.82M
YoY Change
Total Liabilities & Shareholders Equity $339.2M $92.79M $97.84M
YoY Change 265.51% -6.58% -3.57%

Cashflow Statement

Concept 2016 Q4 2015 Q4 2015 Q3
OPERATING ACTIVITIES
Net Income $2.001M $3.393M $3.539M
YoY Change -41.03% -49.69% -62.17%
Depreciation, Depletion And Amortization $3.240M $670.0K $670.0K
YoY Change 383.58% -28.72% -22.99%
Cash From Operating Activities $4.680M $4.550M $8.910M
YoY Change 2.86% -64.67% -23.19%
INVESTING ACTIVITIES
Capital Expenditures $0.00 $0.00 $0.00
YoY Change -100.0% -100.0%
Acquisitions
YoY Change
Other Investing Activities $0.00 -$30.00K -$80.00K
YoY Change -100.0% 0.0% 100.0%
Cash From Investing Activities $0.00 -$40.00K -$70.00K
YoY Change -100.0% -94.67% -86.79%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -6.120M -7.200M -7.450M
YoY Change -15.0% 13.56% 17.32%
NET CHANGE
Cash From Operating Activities 4.680M 4.550M 8.910M
Cash From Investing Activities 0.000 -40.00K -70.00K
Cash From Financing Activities -6.120M -7.200M -7.450M
Net Change In Cash -1.440M -2.690M 1.390M
YoY Change -46.47% -146.46% -70.55%
FREE CASH FLOW
Cash From Operating Activities $4.680M $4.550M $8.910M
Capital Expenditures $0.00 $0.00 $0.00
Free Cash Flow $4.680M $4.550M $8.910M
YoY Change 2.86% -66.54% -26.3%

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CY2014 us-gaap Current State And Local Tax Expense Benefit
CurrentStateAndLocalTaxExpenseBenefit
2825000 USD
CY2015 us-gaap Current State And Local Tax Expense Benefit
CurrentStateAndLocalTaxExpenseBenefit
1270000 USD
CY2016 us-gaap Current State And Local Tax Expense Benefit
CurrentStateAndLocalTaxExpenseBenefit
453000 USD
CY2016Q4 us-gaap Debt Instrument Carrying Amount
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155736000 USD
CY2014 us-gaap Deferred Federal Income Tax Expense Benefit
DeferredFederalIncomeTaxExpenseBenefit
-1393000 USD
CY2015 us-gaap Deferred Federal Income Tax Expense Benefit
DeferredFederalIncomeTaxExpenseBenefit
-2421000 USD
CY2016 us-gaap Deferred Federal Income Tax Expense Benefit
DeferredFederalIncomeTaxExpenseBenefit
4144000 USD
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2930000 USD
CY2014 us-gaap Deferred Income Tax Expense Benefit
DeferredIncomeTaxExpenseBenefit
-1552000 USD
CY2015 us-gaap Deferred Income Tax Expense Benefit
DeferredIncomeTaxExpenseBenefit
-2698000 USD
CY2016 us-gaap Deferred Income Tax Expense Benefit
DeferredIncomeTaxExpenseBenefit
3672000 USD
CY2015Q4 us-gaap Deferred Income Tax Liabilities
DeferredIncomeTaxLiabilities
662000 USD
CY2016Q4 us-gaap Deferred Income Tax Liabilities
DeferredIncomeTaxLiabilities
34746000 USD
CY2015Q4 us-gaap Deferred Revenue Current
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3821000 USD
CY2016Q4 us-gaap Deferred Revenue Current
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5840000 USD
CY2014 us-gaap Deferred State And Local Income Tax Expense Benefit
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-159000 USD
CY2015 us-gaap Deferred State And Local Income Tax Expense Benefit
DeferredStateAndLocalIncomeTaxExpenseBenefit
-277000 USD
CY2016 us-gaap Deferred State And Local Income Tax Expense Benefit
DeferredStateAndLocalIncomeTaxExpenseBenefit
-472000 USD
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DeferredTaxAssetsDeferredIncome
25000 USD
CY2016Q4 us-gaap Deferred Tax Assets Deferred Income
DeferredTaxAssetsDeferredIncome
894000 USD
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5308000 USD
CY2016Q4 us-gaap Deferred Tax Assets Gross
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33124000 USD
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4646000 USD
CY2015Q4 us-gaap Deferred Tax Assets Liabilities Net Noncurrent
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2311000 USD
CY2016Q4 us-gaap Deferred Tax Assets Liabilities Net Noncurrent
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0 USD
CY2015Q4 us-gaap Deferred Tax Assets Net
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5308000 USD
CY2016Q4 us-gaap Deferred Tax Assets Net
DeferredTaxAssetsNet
31500000 USD
CY2015Q4 us-gaap Deferred Tax Assets Net Current
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2335000 USD
CY2016Q4 us-gaap Deferred Tax Assets Net Current
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0 USD
CY2015Q4 us-gaap Deferred Tax Assets Operating Loss Carryforwards
DeferredTaxAssetsOperatingLossCarryforwards
0 USD
CY2016Q4 us-gaap Deferred Tax Assets Operating Loss Carryforwards
DeferredTaxAssetsOperatingLossCarryforwards
26689000 USD
CY2015Q4 us-gaap Deferred Tax Assets Other Comprehensive Loss
DeferredTaxAssetsOtherComprehensiveLoss
23000 USD
CY2016Q4 us-gaap Deferred Tax Assets Other Comprehensive Loss
DeferredTaxAssetsOtherComprehensiveLoss
23000 USD
CY2015Q4 us-gaap Deferred Tax Assets Tax Credit Carryforwards
DeferredTaxAssetsTaxCreditCarryforwards
0 USD
CY2016Q4 us-gaap Deferred Tax Assets Tax Credit Carryforwards
DeferredTaxAssetsTaxCreditCarryforwards
349000 USD
CY2015Q4 us-gaap Deferred Tax Assets Tax Deferred Expense Compensation And Benefits Severance Payments
DeferredTaxAssetsTaxDeferredExpenseCompensationAndBenefitsSeverancePayments
612000 USD
CY2016Q4 us-gaap Deferred Tax Assets Tax Deferred Expense Compensation And Benefits Severance Payments
DeferredTaxAssetsTaxDeferredExpenseCompensationAndBenefitsSeverancePayments
75000 USD
CY2015Q4 us-gaap Deferred Tax Assets Tax Deferred Expense Compensation And Benefits Share Based Compensation Cost
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1784000 USD
CY2016Q4 us-gaap Deferred Tax Assets Tax Deferred Expense Compensation And Benefits Share Based Compensation Cost
DeferredTaxAssetsTaxDeferredExpenseCompensationAndBenefitsShareBasedCompensationCost
1678000 USD
CY2015Q4 us-gaap Deferred Tax Assets Tax Deferred Expense Reserves And Accruals Accrued Liabilities
DeferredTaxAssetsTaxDeferredExpenseReservesAndAccrualsAccruedLiabilities
243000 USD
CY2016Q4 us-gaap Deferred Tax Assets Tax Deferred Expense Reserves And Accruals Accrued Liabilities
DeferredTaxAssetsTaxDeferredExpenseReservesAndAccrualsAccruedLiabilities
1002000 USD
CY2015Q4 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
0 USD
CY2016Q4 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
1624000 USD
CY2016Q1 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
1600000 USD
CY2016Q4 us-gaap Deferred Tax Liabilities
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3246000 USD
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0 USD
CY2016Q4 us-gaap Deferred Tax Liabilities Goodwill And Intangible Assets Intangible Assets
DeferredTaxLiabilitiesGoodwillAndIntangibleAssetsIntangibleAssets
34696000 USD
CY2015Q4 us-gaap Deferred Tax Liabilities Noncurrent
DeferredTaxLiabilitiesNoncurrent
0 USD
CY2016Q4 us-gaap Deferred Tax Liabilities Noncurrent
DeferredTaxLiabilitiesNoncurrent
3246000 USD
CY2015Q4 us-gaap Deferred Tax Liabilities Property Plant And Equipment
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662000 USD
CY2016Q4 us-gaap Deferred Tax Liabilities Property Plant And Equipment
DeferredTaxLiabilitiesPropertyPlantAndEquipment
50000 USD
CY2014 us-gaap Defined Contribution Plan Employer Discretionary Contribution Amount
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2200000 USD
CY2015 us-gaap Defined Contribution Plan Employer Discretionary Contribution Amount
DefinedContributionPlanEmployerDiscretionaryContributionAmount
2200000 USD
CY2016 us-gaap Defined Contribution Plan Employer Discretionary Contribution Amount
DefinedContributionPlanEmployerDiscretionaryContributionAmount
2800000 USD
CY2014 us-gaap Depreciation
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3665000 USD
CY2015 us-gaap Depreciation
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3174000 USD
CY2016 us-gaap Depreciation
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3062000 USD
CY2014 us-gaap Dividends
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25530000 USD
CY2015 us-gaap Dividends
Dividends
28943000 USD
CY2016 us-gaap Dividends
Dividends
25093000 USD
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2.94
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0.49
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0.52
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0.31
CY2015Q4 us-gaap Earnings Per Share Basic
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0.30
CY2015 us-gaap Earnings Per Share Basic
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1.62
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-0.13
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0.15
CY2016Q3 us-gaap Earnings Per Share Basic
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0.12
CY2016Q4 us-gaap Earnings Per Share Basic
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0.15
CY2016 us-gaap Earnings Per Share Basic
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0.29
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2.94
CY2015Q1 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.49
CY2015Q2 us-gaap Earnings Per Share Diluted
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0.52
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0.31
CY2015Q4 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.30
CY2015 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
1.62
CY2016Q1 us-gaap Earnings Per Share Diluted
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-0.13
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EarningsPerShareDiluted
0.15
CY2016Q3 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.12
CY2016Q4 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.15
CY2016 us-gaap Earnings Per Share Diluted
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0.29
CY2014 us-gaap Effective Income Tax Rate Continuing Operations
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0.3381
CY2015 us-gaap Effective Income Tax Rate Continuing Operations
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0.2804
CY2016 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.5075
CY2014 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
0.35
CY2015 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
0.35
CY2016 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
0.35
CY2016 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Period For Recognition1
EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedPeriodForRecognition1
P1Y6M30D
CY2016Q4 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Share Based Awards Other Than Options
EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedShareBasedAwardsOtherThanOptions
5500000 USD
CY2014 us-gaap Employee Service Share Based Compensation Tax Benefit From Compensation Expense
EmployeeServiceShareBasedCompensationTaxBenefitFromCompensationExpense
1627000 USD
CY2016Q4 us-gaap Financing Receivable Allowance For Credit Losses
FinancingReceivableAllowanceForCreditLosses
2198000 USD
CY2015 us-gaap Financing Receivable Allowance For Credit Losses Recovery
FinancingReceivableAllowanceForCreditLossesRecovery
0 USD
CY2015 us-gaap Employee Service Share Based Compensation Tax Benefit From Compensation Expense
EmployeeServiceShareBasedCompensationTaxBenefitFromCompensationExpense
2098000 USD
CY2016 us-gaap Financing Receivable Allowance For Credit Losses Recovery
FinancingReceivableAllowanceForCreditLossesRecovery
0 USD
CY2015 us-gaap Financing Receivable Allowance For Credit Losses Write Offs
FinancingReceivableAllowanceForCreditLossesWriteOffs
583000 USD
CY2016 us-gaap Financing Receivable Allowance For Credit Losses Write Offs
FinancingReceivableAllowanceForCreditLossesWriteOffs
218000 USD
CY2015Q4 us-gaap Financing Receivable Allowance For Credit Losses
FinancingReceivableAllowanceForCreditLosses
654000 USD
CY2016 us-gaap Employee Service Share Based Compensation Tax Benefit From Compensation Expense
EmployeeServiceShareBasedCompensationTaxBenefitFromCompensationExpense
2093000 USD
CY2014 us-gaap Excess Tax Benefit From Share Based Compensation Financing Activities
ExcessTaxBenefitFromShareBasedCompensationFinancingActivities
167000 USD
CY2015 us-gaap Excess Tax Benefit From Share Based Compensation Financing Activities
ExcessTaxBenefitFromShareBasedCompensationFinancingActivities
-176000 USD
CY2016 us-gaap Excess Tax Benefit From Share Based Compensation Financing Activities
ExcessTaxBenefitFromShareBasedCompensationFinancingActivities
210000 USD
CY2014 us-gaap Excess Tax Benefit From Share Based Compensation Operating Activities
ExcessTaxBenefitFromShareBasedCompensationOperatingActivities
167000 USD
CY2015 us-gaap Excess Tax Benefit From Share Based Compensation Operating Activities
ExcessTaxBenefitFromShareBasedCompensationOperatingActivities
-176000 USD
CY2016 us-gaap Excess Tax Benefit From Share Based Compensation Operating Activities
ExcessTaxBenefitFromShareBasedCompensationOperatingActivities
210000 USD
CY2014Q4 us-gaap Financing Receivable Allowance For Credit Losses
FinancingReceivableAllowanceForCreditLosses
1001000 USD
CY2015Q4 us-gaap Financing Receivable Recorded Investment Current
FinancingReceivableRecordedInvestmentCurrent
9826000 USD
CY2016Q4 us-gaap Financing Receivable Recorded Investment Current
FinancingReceivableRecordedInvestmentCurrent
5068000 USD
CY2015Q4 us-gaap Financing Receivable Recorded Investment Past Due
FinancingReceivableRecordedInvestmentPastDue
346000 USD
CY2016Q4 us-gaap Financing Receivable Recorded Investment Past Due
FinancingReceivableRecordedInvestmentPastDue
293000 USD
CY2016Q4 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
10182000 USD
CY2016Q4 us-gaap Finite Lived Intangible Assets Amortization Expense After Year Five
FiniteLivedIntangibleAssetsAmortizationExpenseAfterYearFive
56022000 USD
CY2016Q4 us-gaap Finite Lived Intangible Assets Amortization Expense Remainder Of Fiscal Year
FiniteLivedIntangibleAssetsAmortizationExpenseRemainderOfFiscalYear
10406000 USD
CY2016Q4 us-gaap Finite Lived Intangible Assets Amortization Expense Year Five
FiniteLivedIntangibleAssetsAmortizationExpenseYearFive
10066000 USD
CY2016Q4 us-gaap Finite Lived Intangible Assets Amortization Expense Year Four
FiniteLivedIntangibleAssetsAmortizationExpenseYearFour
10106000 USD
CY2016Q4 us-gaap Finite Lived Intangible Assets Amortization Expense Year Three
FiniteLivedIntangibleAssetsAmortizationExpenseYearThree
10112000 USD
CY2016Q4 us-gaap Finite Lived Intangible Assets Amortization Expense Year Two
FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo
10406000 USD
CY2016Q4 us-gaap Finite Lived Intangible Assets Gross
FiniteLivedIntangibleAssetsGross
117300000 USD
CY2015Q4 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
0 USD
CY2016Q4 us-gaap Finite Lived Intangible Assets Net
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107118000 USD
CY2014 us-gaap General And Administrative Expense
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30018000 USD
CY2015 us-gaap General And Administrative Expense
GeneralAndAdministrativeExpense
36810000 USD
CY2016 us-gaap General And Administrative Expense
GeneralAndAdministrativeExpense
53642000 USD
CY2015Q4 us-gaap Goodwill
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0 USD
CY2016Q4 us-gaap Goodwill
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168449000 USD
CY2016 us-gaap Goodwill Acquired During Period
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168449000 USD
CY2015 us-gaap Goodwill Impairment Loss
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0 USD
CY2016 us-gaap Goodwill Impairment Loss
GoodwillImpairmentLoss
0 USD
CY2014 us-gaap Gross Profit
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113947000 USD
CY2015Q1 us-gaap Gross Profit
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24446000 USD
CY2015Q2 us-gaap Gross Profit
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24715000 USD
CY2015Q3 us-gaap Gross Profit
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22727000 USD
CY2015Q4 us-gaap Gross Profit
GrossProfit
22570000 USD
CY2015 us-gaap Gross Profit
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94458000 USD
CY2016Q1 us-gaap Gross Profit
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36253000 USD
CY2015 us-gaap Income Tax Expense Benefit
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7148000 USD
CY2016Q2 us-gaap Gross Profit
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35135000 USD
CY2016Q3 us-gaap Gross Profit
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32951000 USD
CY2016Q4 us-gaap Gross Profit
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33675000 USD
CY2016 us-gaap Gross Profit
GrossProfit
138014000 USD
CY2014 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
49739000 USD
CY2015 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
25491000 USD
CY2016 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
7986000 USD
CY2014 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
16819000 USD
CY2016 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
4053000 USD
CY2014 us-gaap Income Tax Reconciliation Deductions Qualified Production Activities
IncomeTaxReconciliationDeductionsQualifiedProductionActivities
1606000 USD
CY2015 us-gaap Income Tax Reconciliation Deductions Qualified Production Activities
IncomeTaxReconciliationDeductionsQualifiedProductionActivities
670000 USD
CY2016 us-gaap Income Tax Reconciliation Deductions Qualified Production Activities
IncomeTaxReconciliationDeductionsQualifiedProductionActivities
0 USD
CY2014 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate
17409000 USD
CY2015 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate
8922000 USD
CY2016 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate
2795000 USD
CY2014 us-gaap Income Tax Reconciliation Other Reconciling Items
IncomeTaxReconciliationOtherReconcilingItems
166000 USD
CY2015 us-gaap Income Tax Reconciliation Other Reconciling Items
IncomeTaxReconciliationOtherReconcilingItems
-122000 USD
CY2016 us-gaap Income Tax Reconciliation Other Reconciling Items
IncomeTaxReconciliationOtherReconcilingItems
-35000 USD
CY2014 us-gaap Income Tax Reconciliation State And Local Income Taxes
IncomeTaxReconciliationStateAndLocalIncomeTaxes
1773000 USD
CY2015 us-gaap Income Tax Reconciliation State And Local Income Taxes
IncomeTaxReconciliationStateAndLocalIncomeTaxes
944000 USD
CY2016 us-gaap Income Tax Reconciliation State And Local Income Taxes
IncomeTaxReconciliationStateAndLocalIncomeTaxes
5000 USD
CY2014 us-gaap Income Tax Reconciliation Tax Contingencies
IncomeTaxReconciliationTaxContingencies
138000 USD
CY2015 us-gaap Income Tax Reconciliation Tax Contingencies
IncomeTaxReconciliationTaxContingencies
-1219000 USD
CY2016 us-gaap Income Tax Reconciliation Tax Contingencies
IncomeTaxReconciliationTaxContingencies
0 USD
CY2014 us-gaap Income Tax Reconciliation Tax Credits
IncomeTaxReconciliationTaxCredits
597000 USD
CY2015 us-gaap Income Tax Reconciliation Tax Credits
IncomeTaxReconciliationTaxCredits
414000 USD
CY2016 us-gaap Income Tax Reconciliation Tax Credits
IncomeTaxReconciliationTaxCredits
349000 USD
CY2014 us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
20069000 USD
CY2015 us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
9231000 USD
CY2016 us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
110000 USD
CY2014 us-gaap Increase Decrease In Accounts Payable
IncreaseDecreaseInAccountsPayable
777000 USD
CY2015 us-gaap Increase Decrease In Accounts Payable
IncreaseDecreaseInAccountsPayable
600000 USD
CY2016 us-gaap Increase Decrease In Accounts Payable
IncreaseDecreaseInAccountsPayable
-5588000 USD
CY2014 us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
3956000 USD
CY2015 us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
166000 USD
CY2016 us-gaap Increase Decrease In Accounts Receivable
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3927000 USD
CY2014 us-gaap Increase Decrease In Accrued Income Taxes Payable
IncreaseDecreaseInAccruedIncomeTaxesPayable
-1750000 USD
CY2015 us-gaap Increase Decrease In Accrued Income Taxes Payable
IncreaseDecreaseInAccruedIncomeTaxesPayable
518000 USD
CY2016 us-gaap Increase Decrease In Accrued Income Taxes Payable
IncreaseDecreaseInAccruedIncomeTaxesPayable
280000 USD
CY2014 us-gaap Increase Decrease In Deferred Revenue
IncreaseDecreaseInDeferredRevenue
-3691000 USD
CY2015 us-gaap Increase Decrease In Deferred Revenue
IncreaseDecreaseInDeferredRevenue
-2070000 USD
CY2016 us-gaap Increase Decrease In Deferred Revenue
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-13662000 USD
CY2014 us-gaap Increase Decrease In Finance Receivables
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-7406000 USD
CY2015 us-gaap Increase Decrease In Finance Receivables
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-6500000 USD
CY2016 us-gaap Increase Decrease In Finance Receivables
IncreaseDecreaseInFinanceReceivables
-1514000 USD
CY2014 us-gaap Increase Decrease In Inventories
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-158000 USD
CY2015 us-gaap Increase Decrease In Inventories
IncreaseDecreaseInInventories
102000 USD
CY2016 us-gaap Increase Decrease In Inventories
IncreaseDecreaseInInventories
-14000 USD
CY2014 us-gaap Increase Decrease In Other Operating Liabilities
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421000 USD
CY2015 us-gaap Increase Decrease In Other Operating Liabilities
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730000 USD
CY2016 us-gaap Increase Decrease In Other Operating Liabilities
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-7250000 USD
CY2014 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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35000 USD
CY2015 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
419000 USD
CY2016 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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-1787000 USD
CY2014 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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0 shares
CY2015 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
0 shares
CY2016 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
0 shares
CY2014 us-gaap Interest Expense
InterestExpense
0 USD
CY2015 us-gaap Interest Expense
InterestExpense
0 USD
CY2016 us-gaap Interest Expense
InterestExpense
6609000 USD
CY2014 us-gaap Interest Paid
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0 USD
CY2015 us-gaap Interest Paid
InterestPaid
0 USD
CY2016 us-gaap Interest Paid
InterestPaid
5876000 USD
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1495000 USD
CY2016Q4 us-gaap Inventory Net
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1697000 USD
CY2015Q4 us-gaap Liabilities
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17422000 USD
CY2016Q4 us-gaap Liabilities
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181180000 USD
CY2015Q4 us-gaap Liabilities And Stockholders Equity
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92788000 USD
CY2016Q4 us-gaap Liabilities And Stockholders Equity
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339150000 USD
CY2015Q4 us-gaap Liabilities Current
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17422000 USD
CY2016Q4 us-gaap Liabilities Current
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30945000 USD
CY2015Q4 us-gaap Loans And Leases Receivable Allowance
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163000 USD
CY2016Q4 us-gaap Loans And Leases Receivable Allowance
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402000 USD
CY2015Q4 us-gaap Loans And Leases Receivable Deferred Income
LoansAndLeasesReceivableDeferredIncome
266000 USD
CY2016Q4 us-gaap Loans And Leases Receivable Deferred Income
LoansAndLeasesReceivableDeferredIncome
797000 USD
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3239000 USD
CY2016Q4 us-gaap Loans And Leases Receivable Gross Carrying Amount
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8981000 USD
CY2016Q4 us-gaap Loans And Leases Receivable Net Of Deferred Income
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7782000 USD
CY2015Q4 us-gaap Loans And Leases Receivable Net Reported Amount
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2810000 USD
CY2016Q4 us-gaap Loans And Leases Receivable Net Reported Amount
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7782000 USD
CY2016Q4 us-gaap Long Term Debt
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152806000 USD
CY2015Q4 us-gaap Long Term Debt Current
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0 USD
CY2016Q4 us-gaap Long Term Debt Current
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5817000 USD
CY2015Q4 us-gaap Long Term Debt Noncurrent
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0 USD
CY2016Q4 us-gaap Long Term Debt Noncurrent
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146989000 USD
CY2014 us-gaap Net Cash Provided By Used In Financing Activities
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-25364000 USD
CY2015 us-gaap Net Cash Provided By Used In Financing Activities
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-29119000 USD
CY2016 us-gaap Net Cash Provided By Used In Financing Activities
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126953000 USD
CY2014 us-gaap Net Cash Provided By Used In Investing Activities
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-1523000 USD
CY2015 us-gaap Net Cash Provided By Used In Investing Activities
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-598000 USD
CY2016 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-151789000 USD
CY2014 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
38950000 USD
CY2015 us-gaap Net Cash Provided By Used In Operating Activities
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30876000 USD
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1749000 USD
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1000000 USD
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2700000 USD
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38000 USD
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38000 USD
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220000 USD
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152000 USD
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405000 USD
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499000 USD
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373000 USD
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38000 USD
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0 USD
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25092000 USD
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0 USD
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0 USD
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162611000 USD
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150000 USD
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0 USD
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1473000 USD
CY2015 us-gaap Payments To Acquire Property Plant And Equipment
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448000 USD
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1355000 USD
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0 USD
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0 USD
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14351000 USD
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13439000 USD
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582000 USD
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2259000 USD
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236000 USD
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0 USD
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0 USD
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5196000 USD
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14622000 USD
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14229000 USD
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32621000 USD
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31206000 USD
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10046000 USD
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148652000 USD
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118385000 USD
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197874000 USD
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204742000 USD
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46240000 USD
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44231000 USD
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182174000 USD
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64551000 USD
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267272000 USD
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56090000 USD
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63789000 USD
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69398000 USD
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19720000 USD
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18333000 USD
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27194000 USD
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4172000 USD
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5380000 USD
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5366000 USD
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600000 USD
CY2015 us-gaap Shipping Handling And Transportation Costs
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400000 USD
CY2016 us-gaap Shipping Handling And Transportation Costs
ShippingHandlingAndTransportationCosts
400000 USD
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10824000 USD
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0 USD
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13000 shares
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0 USD
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89803000 USD
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0 USD
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0 USD
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80780000 USD
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75366000 USD
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157970000 USD
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0 USD
CY2015 us-gaap Undistributed Earnings Loss Allocated To Participating Securities Diluted
UndistributedEarningsLossAllocatedToParticipatingSecuritiesDiluted
0 USD
CY2016 us-gaap Undistributed Earnings Loss Allocated To Participating Securities Diluted
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0 USD
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1456000 USD
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0 USD
CY2016Q4 us-gaap Unrecognized Tax Benefits
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0 USD
CY2016Q4 us-gaap Unrecognized Tax Benefits
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0 USD
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1456000 USD
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0 USD
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0 USD
CY2016 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
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0 USD
CY2015 us-gaap Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions
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0 USD
CY2016 us-gaap Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions
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0 USD
CY2014 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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11026000 shares
CY2015 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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11083000 shares
CY2016 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
13255000 shares
CY2014 us-gaap Weighted Average Number Of Shares Outstanding Basic
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11026000 shares
CY2015 us-gaap Weighted Average Number Of Shares Outstanding Basic
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11083000 shares
CY2016 us-gaap Weighted Average Number Of Shares Outstanding Basic
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13255000 shares
CY2016 us-gaap Nature Of Operations
NatureOfOperations
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:12px;padding-top:12px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">NATURE OF OPERATIONS</font></div><div style="line-height:120%;padding-bottom:12px;padding-top:12px;padding-left:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Computer Programs and Systems, Inc. ("CPSI" or the "Company") is a healthcare information technology solutions provider which was formed and commenced operations in 1979. The Company provides, on an integrated basis, enterprise-wide clinical management, access management, patient financial management, health information management, strategic decision support, resource planning management and enterprise application integration solutions to healthcare organizations throughout the United States. Additionally, CPSI provides other information technology solutions, including business management services, remote hosting, networking technologies and other related services.</font></div></div>
CY2016 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:12px;padding-left:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Presentation </font></div><div style="line-height:120%;padding-top:12px;padding-left:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;background-color:#ffffff;">Effective January 1, 2016, we adopted a revised presentation of sales revenues and the associated costs of sales in our consolidated statements of income, which we believe is better aligned with and representative of the amount and profitability of our revenue streams, as well as the way we manage our business, review our operating performance and market our products. Specifically:</font></div><table cellpadding="0" cellspacing="0" style="padding-top:12px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;" 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:48px;"><font style="font-family:inherit;font-size:10pt;background-color:#ffffff;">&#8226;</font></div></td><td style="vertical-align:top;padding-left:24px;" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;text-indent:-24px;"><font style="font-family:inherit;font-size:10pt;background-color:#ffffff;">The Company's sales revenues and costs of sales amounts formerly included within the captions "System sales" and "Support and maintenance" are now included within the caption "System sales and support" within the consolidated statements of income;</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:12px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;" 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:48px;"><font style="font-family:inherit;font-size:10pt;background-color:#ffffff;">&#8226;</font></div></td><td style="vertical-align:top;padding-left:24px;" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;text-indent:-24px;"><font style="font-family:inherit;font-size:10pt;background-color:#ffffff;">The Company's product development costs formerly included within the captions of "System sales" and "Support and maintenance" within the "Costs of sales" section of the consolidated statements of income are now included within the caption "Product development" within the "Operating expenses" section of the consolidated statements of income; and</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:12px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;" 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:48px;"><font style="font-family:inherit;font-size:10pt;background-color:#ffffff;">&#8226;</font></div></td><td style="vertical-align:top;padding-left:24px;" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;text-indent:-24px;"><font style="font-family:inherit;font-size:10pt;">The Company's sales-facilitative costs associated with business management, consulting and managed IT services formerly included within the caption "Business management, consulting and managed IT services" within the "Costs of sales" section of the consolidated statements of income are now included within the caption "Sales and marketing" within the "Operating expenses" section of the consolidated statements of income.</font></div></td></tr></table><div style="line-height:120%;padding-top:12px;padding-left:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">These reclassifications had no effect on previously reported total sales revenues, operating income, income before taxes or net income. In addition, in 2016, we changed the rounding of our financial statements from ones to thousands.</font></div></div>
CY2016 us-gaap Revenue Recognition Multiple Element Arrangements
RevenueRecognitionMultipleElementArrangements
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:12px;padding-top:12px;padding-left:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Revenue Recognition</font></div><div style="line-height:120%;padding-top:12px;padding-left:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company recognizes revenue in accordance with U.S. GAAP, principally those required by the </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Software</font><font style="font-family:inherit;font-size:10pt;"> topic and </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Revenue Recognition</font><font style="font-family:inherit;font-size:10pt;"> subtopic of the FASB Codification and those prescribed by the SEC.</font></div><div style="line-height:120%;padding-top:12px;padding-left:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company's revenue is generated from two sources:</font></div><table cellpadding="0" cellspacing="0" style="padding-top:12px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;" 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:48px;"><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%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">System Sales</font><font style="font-family:inherit;font-size:10pt;"> </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">and Support</font><font style="font-family:inherit;font-size:10pt;"> - the sale of information systems and the provision of system support services. The sale of information systems includes perpetual software licenses, conversion, installation and training services, hardware and peripherals, "Software as a Service" (or "SaaS") services, and forms and supplies. System support services includes software application support, hardware maintenance, and continuing education.</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:12px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;" 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:48px;"><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%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Business Management, Consulting and Managed IT Services</font><font style="font-family:inherit;font-size:10pt;"> - the provision of business management services, which includes electronic billing, statement processing, payroll processing, accounts receivable management, contract management and insurance services, as well as Internet service provider ("ISP") services and consulting and managed IT services (collectively, "other professional IT services").</font></div></td></tr></table><div style="line-height:120%;padding-top:12px;padding-left:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">System Sales and Support</font></div><div style="line-height:120%;padding-top:12px;padding-left:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company enters into contractual obligations to sell perpetual software licenses, conversion, installation and training services, hardware and software application support and hardware maintenance services. On average, the Company is able to complete a system installation in three to four weeks. The methods employed by the Company to recognize revenue, which are discussed by element below, achieve results materially consistent with the provisions of Accounting Standards Update ("ASU") 2009-13, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Multiple-Deliverable Revenue Arrangements</font><font style="font-family:inherit;font-size:10pt;">, due to the relatively short period during which there are multiple undelivered elements, the relatively small amount of non-software related elements in the system sale arrangements, and the limited number of contracts in-process at the end of each reporting period. The Company recognizes revenue on the elements noted above as follows:</font></div><table cellpadding="0" cellspacing="0" style="padding-top:12px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;" 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:48px;"><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%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Perpetual software licenses and conversion, installation and training services &#8211; The selling price of perpetual software licenses and conversion, installation and training services is based on management&#8217;s best estimate of selling price. In determining management&#8217;s best estimate of selling price, we consider the following: (1) competitor pricing, (2) supply and demand of installation staff, (3) overall economic conditions, and (4) our pricing practices as they relate to discounts. With the exception of certain arrangements with extended payment terms that were entered into in 2012 and that are not comparable to our historical or current arrangements (see Note 11), the method of recognizing revenue for the perpetual license of the associated modules included in the arrangement, and the related conversion, installation and training services over the term the services are performed, is on a module by module basis as the related perpetual licenses are delivered and the respective conversion, installation and training for each specific module is completed, as this is representative of the pattern of provision of these services.</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:12px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;" 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:48px;"><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%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Hardware &#8211; We recognize revenue for hardware upon shipment. The selling price of hardware is based on management&#8217;s best estimate of selling price, which consists of cost plus a targeted margin.</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:12px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;" 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:48px;"><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%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Software application support and hardware maintenance &#8211; We have established vendor-specific objective evidence ("VSOE") of the fair value of our software application support and hardware maintenance services by reference to the price our customers are required to pay for the services when sold separately via renewals. Support and maintenance revenue is recognized on a straight-line basis over the term of the maintenance contract, which is generally three to five years.</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:12px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;" 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:48px;"><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%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">SaaS services - The Company accounts for SaaS arrangements in accordance with the requirements of the </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Hosting Arrangemen</font><font style="font-family:inherit;font-size:10pt;">t section under the </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Software</font><font style="font-family:inherit;font-size:10pt;"> topic and </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Revenue Recognition</font><font style="font-family:inherit;font-size:10pt;"> subtopic of the Codification. The Codification states that the software elements of SaaS services should not be accounted for as a hosting arrangement "if the customer has the contractual right to take possession of the software at any time during the hosting period without significant penalty and it is feasible for the customer to either run the software on its own hardware or contract with another party unrelated to the vendor to host the software." Each SaaS contract entered into by the Company includes a system purchase and buyout clause, and this clause specifies the total amount of the system buyout. In addition, a clause is included in the contract which states that should the system be bought out by the customer, the customer would be required to enter into a general support agreement (for post-contract support services) for the remainder of the original SaaS term. Accordingly, the Company has concluded that SaaS customers do not have the right to take possession of the system without significant penalty (i.e., the purchase price of the system), resulting in the determination that these contracts are service contracts for which revenue is recognized when the services are performed.</font></div></td></tr></table><div style="line-height:120%;padding-top:12px;padding-left:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Business Management, Consulting and Managed IT Services</font></div><div style="line-height:120%;padding-top:12px;padding-left:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Business management services consist of electronic billing, statement processing, payroll processing, accounts receivable management, contract management and insurance services. While business management service arrangements are contracts separate from the system sale and support contracts, these contracts are often executed within a short time frame of each other. The amount of the total arrangement consideration allocated to these services is based on VSOE of fair value by reference to the rate at which our customers renew as well as the rate at which the services are sold to customers when the business management services agreement is not executed within a short time frame of the system sale and support contracts. If VSOE of fair value does not exist for these services, we allocate arrangement consideration based on third-party evidence ("TPE") of selling price or, if neither VSOE nor TPE is available, estimated selling price. Because the pricing is transaction based (per unit pricing), customers are billed and revenue recognized as services are performed based on transaction levels.</font></div><div style="line-height:120%;padding-top:12px;padding-left:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company will occasionally provide ISP and other professional IT services. Depending on the nature of the services provided, these services may be considered software elements or non-software elements. The selling price of services considered to be software elements is based on VSOE of the fair value of the services by reference to the price our customers are required to pay for the services when sold separately. The selling price of services considered to be non-software elements is based on third-party evidence of selling price of similar services. Revenue from these elements is recognized as the services are performed.</font></div><div style="line-height:120%;padding-bottom:12px;padding-top:12px;padding-left:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;"></font></div></div>
CY2016 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:12px;padding-top:12px;padding-left:24px;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-bottom:12px;padding-top:12px;padding-left:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of financial statements in conformity with U.S. GAAP requires that management make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements, and the reported revenues and expenses during the reporting periods. Actual results could differ from those estimates.</font></div></div>

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