Quarterly report pursuant to Section 13 or 15(d)

Significant Accounting Policies (Tables)

v3.5.0.2
Significant Accounting Policies (Tables)
3 Months Ended
Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Summary of computation of basic and diluted net income (loss) per share
The following table presents the computation of basic and diluted net income per share for the periods indicated (in thousands, except per share amounts):

 
Three months ended
 
March 31,
 
2016
 
2015
Net income from continuing operations
$
5,877

 
$
754

Net income from discontinued operations
731

 

Net income
$
6,608

 
$
754

 
 
 
 
Shares used to compute basic income per share
20,707,926

 
19,611,881

Dilutive potential common shares:
 
 
 
Restricted stock
66,736

 
61,538

     Stock options
759,581

 
957,369

     0.75% Convertible Senior Notes, Due 2019
749,736

 

Shares used to compute diluted income per share
22,283,979

 
20,630,788

 
 
 
 
Basic per share amounts:
 
 
 
Income from continuing operations
$
0.28

 
$
0.04

Income from discontinued operations
0.04

 

Basic net income per share
$
0.32

 
$
0.04

 
 
 
 
Diluted per share amounts:
 
 
 
Income from continuing operations
$
0.26

 
$
0.04

Income from discontinued operations
0.03

 

Diluted net income per share
$
0.30

 
$
0.04

Summary of investment categories
The following table summarizes the various investment categories at March 31, 2016 and December 31, 2015 (in thousands):

 
Amortized cost
 
Gross unrealized
gains
 
Gross unrealized
losses
 
Estimated
fair value
March 31, 2016
 
 
 
 
 
 
 
Short-term investments
 
 
 
 
 
 


     Bank deposits
$
42,376

 
$
87

 
$

 
$
42,463

     Corporate bonds
24,268

 
84

 
(2
)
 
24,350

     Commercial paper
8,401

 
2

 

 
8,403

     Asset backed securities
2,067

 
1

 
(1
)
 
2,067

     Corporate equity securities
1,811

 
2,814

 

 
4,625

 
$
78,923

 
$
2,988

 
$
(3
)
 
$
81,908

December 31, 2015
 
 
 
 
 
 
 
Short-term investments
 
 
 
 
 
 
 
     Bank deposits
$
43,043

 
$

 
$
(4
)
 
$
43,039

     Corporate bonds
41,238

 
$

 
(35
)
 
41,203

     Commercial paper
1,747

 
$

 

 
1,747

     Asset backed securities
10,020

 
$

 
(5
)
 
10,015

     Corporate equity securities
1,843

 
$
4,944

 

 
6,787

 
$
97,891

 
$
4,944

 
$
(44
)
 
$
102,791

Summary of goodwill and other identifiable intangible assets
Goodwill and other identifiable intangible assets consist of the following (in thousands):

 
March 31,
 
December 31,
 
2016
 
2015
Indefinite lived intangible assets
 
 
 
     Acquired IPR&D
$
12,556

 
$
12,556

     Goodwill
72,997

 
12,238

Definite lived intangible assets
 
 
 
     Complete technology
182,267

 
15,267

          Less: Accumulated amortization
(5,883
)
 
(3,762
)
     Trade name
2,642

 
2,642

          Less: Accumulated amortization
(685
)
 
(652
)
     Customer relationships
29,600

 
29,600

          Less: Accumulated amortization
(7,674
)
 
(7,304
)
Total goodwill and other identifiable intangible assets, net
$
285,820

 
$
60,585

Summary of property and equipment
Property and equipment is stated at cost and consists of the following (in thousands):

 
March 31,
 
December 31,
 
2016
 
2015
Lab and office equipment
$
2,482

 
$
2,248

Leasehold improvements
273

 
273

Computer equipment and software
636

 
632

 
3,391

 
3,153

Less accumulated depreciation and amortization
(2,824
)
 
(2,781
)
     Total property and equipment, net
$
567

 
$
372

Summary of other current assets
Other current assets consist of the following (in thousands):

 
March 31,
 
December 31,
 
2016
 
2015
Prepaid expenses
$
1,087

 
$
1,177

Other receivables
475

 
731

     Total other current assets
$
1,562

 
$
1,908

Summary of accrued liabilities
Accrued liabilities consist of the following (in thousands):

 
March 31,
 
December 31,
 
2016
 
2015
Compensation
$
854

 
$
1,711

Professional fees
754

 
726

Amounts owed to former licensees
695

 
915

Royalties owed to third parties
937

 
823

Other
429

 
1,222

     Total accrued liabilities
$
3,669

 
$
5,397

Summary of other long-term liabilities
Other long-term liabilities consist of the following (in thousands):

 
March 31,
 
December 31,
 
2016
 
2015
Deposits
$
298

 
$
268

Deferred rent
107

 

Other
41

 
29

     Total other long-term liabilities
$
446

 
$
297

Schedule for accounting for share-based compensation
The following table summarizes stock-based compensation expense recorded as components of research and development expenses and general and administrative expenses for the periods indicated (in thousands):

 
Three months ended
 
 
March 31,
 
 
2016
 
2015
 
Stock-based compensation expense as a component of:
 
 
 
 
Research and development expenses
$
1,585

 
$
920

 
General and administrative expenses
2,533

 
1,994

 
 
$
4,118

 
$
2,914

 
Summary of fair-value options awarded to employees and directors
The fair-value for options that were awarded to employees and directors was estimated at the date of grant using the Black-Scholes option valuation model with the following weighted-average assumptions:

 
Three months ended
 
 
March 31,
 
 
2016
 
2015
 
Risk-free interest rate
1.5%
 
1.8%
 
Dividend yield
 
 
Expected volatility
50%
 
58%
 
Expected term
6.6
 
6.6
 
Forfeiture rate
5.0%
 
8.5%