Quarterly report pursuant to Section 13 or 15(d)

Basis of Presentation (Tables)

v2.4.0.8
Basis of Presentation (Tables)
9 Months Ended
Sep. 30, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Summary of computation of basic and diluted net income (loss) per share
The following table sets forth the computation of basic and diluted net income per share for the periods indicated (in thousands, except per share amounts):

 
Three months ended
 
Nine months ended
 
September 30,
 
September 30,
 
2014
 
2013
 
2014
 
2013
EPS attributable to common shareholders:
 
 
 
 
 
 
 
Net income from continuing operations
$
1,280

 
$
1,965

 
4,969

 
$
6,963

Net income from discontinued operations

 

 

 
2,588

Net income
$
1,280

 
$
1,965

 
$
4,969

 
$
9,551

 
 
 
 
 
 
 
 
Shares used to compute basic income per share
20,417,187

 
20,357,558

 
20,584,469

 
20,268,261

Dilutive potential common shares:
 
 
 
 
 
 
 
Restricted stock
22,531

 
77,609

 
37,387

 
62,051

     Stock options
905,593

 
408,575

 
1,010,665

 
232,310

Shares used to compute diluted income per share
21,345,311

 
20,843,742

 
21,632,521

 
20,562,622

 
 
 
 
 
 
 
 
Basic per share amounts:
 
 
 
 
 
 
 
Income from continuing operations
$
0.06

 
$
0.10

 
$
0.24

 
$
0.34

Income from discontinued operations

 

 

 
0.13

Net income
$
0.06

 
$
0.10

 
$
0.24

 
$
0.47

 
 
 
 
 
 
 
 
Diluted per share amounts:
 
 
 
 
 
 
 
Income from continuing operations
$
0.06

 
$
0.09

 
$
0.23

 
$
0.33

Income from discontinued operations

 

 

 
0.13

Net income
$
0.06

 
$
0.09

 
$
0.23

 
$
0.46

Summary of investment categories
The following table summarizes the various investment categories at September 30, 2014 and December 31, 2013 (in thousands):

 
Cost
 
Gross unrealized
gains
 
Gross unrealized
losses
 
Estimated
fair value
September 30, 2014
 
 
 
 
 
 
 
Short-term investments
$
1,426

 
$
4,499

 
$

 
$
5,925

Certificates of deposit-restricted
1,261

 

 

 
1,261

 
$
2,687

 
$
4,499

 
$

 
$
7,186

December 31, 2013
 
 
 
 
 
 
 
Short-term investments
$
1,426

 
$
2,914

 
$

 
$
4,340

Certificates of deposit-restricted
1,341

 

 

 
1,341

 
$
2,767

 
$
2,914

 
$

 
$
5,681

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

 
September 30,
 
December 31,
 
2014
 
2013
Lab and office equipment
$
2,509

 
$
3,737

Leasehold improvements
273

 
387

Computer equipment and software
631

 
616

 
3,413

 
4,740

Less accumulated depreciation and amortization
(2,862
)
 
(3,873
)
     Total property and equipment, net
$
551

 
$
867

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

 
September 30,
 
December 31,
 
2014
 
2013
Prepaid expenses
$
1,178

 
$
786

Other receivables
424

 
173

     Total current assets
$
1,602

 
$
959

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

 
September 30,
 
December 31,
 
2014
 
2013
Indefinite lived intangible assets
 
 
 
     Acquired in-process research and development
$
12,556

 
$
12,556

     Goodwill
12,238

 
12,238

Definite lived intangible assets
 
 
 
     Complete technology
15,267

 
15,267

          Less: Accumulated amortization
(2,807
)
 
(2,235
)
     Trade name
2,642

 
2,642

          Less: Accumulated amortization
(487
)
 
(387
)
     Customer relationships
29,600

 
29,600

          Less: Accumulated amortization
(5,454
)
 
(4,344
)
Total goodwill and other identifiable intangible assets, net
$
63,555

 
$
65,337

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

 
September 30,
 
December 31,
 
2014
 
2013
Compensation
$
1,388

 
$
1,929

Professional fees
805

 
697

Accrued interest payable
230

 

Other
1,888

 
2,711

     Total accrued liabilities
$
4,311

 
$
5,337

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

 
September 30,
 
December 31,
 
2014
 
2013
Deposits
$
402

 
$
345

Deferred rent
335

 
350

     Total other long-term liabilities
$
737

 
$
695

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
 
Nine months ended
 
September 30,
 
September 30,
 
2014
 
2013
 
2014
 
2013
Stock-based compensation expense as a component of:
 
 
 
 
 
 
 
Research and development expenses
$
1,169

 
$
438

 
$
2,814

 
$
1,272

General and administrative expenses
2,533

 
1,095

 
5,981

 
2,877

 
$
3,702

 
$
1,533

 
$
8,795

 
$
4,149

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
 
Nine months ended
 
September 30,
 
September 30,
 
2014
 
2013
 
2014
 
2013
Risk-free interest rate
1.9%
 
1.8%
 
1.9%
 
1.4%
Dividend yield
 
 
 
Expected volatility
67%
 
70%
 
68%
 
70%
Expected term
6.4
 
6.3
 
6.4
 
6.3
Forfeiture rate
8.6%
 
8.8%
 
8.6%-9.7%
 
8.4%-9.8%