(Mark One) | |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the transition period from to |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
Title of each class | Name of each exchange on which registered | Ticker Symbol | ||
☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | Emerging growth company | |||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transitions period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ |
Page | ||
June 30, 2019 | December 31, 2018 | ||||||
(In thousands, except par value) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | $ | |||||
Accounts receivable and unbilled receivables, net of allowances of $3,698 and $2,582, respectively | |||||||
Inventories | |||||||
Prepaid expenses | |||||||
Other current assets | |||||||
Total current assets | |||||||
Property and equipment, net | |||||||
Long-term investment in sales-type leases, net | |||||||
Operating lease right-of-use assets | |||||||
Goodwill | |||||||
Intangible assets, net | |||||||
Long-term deferred tax assets | |||||||
Prepaid commissions | |||||||
Other long-term assets | |||||||
Total assets | $ | $ | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | $ | |||||
Accrued compensation | |||||||
Accrued liabilities | |||||||
Deferred revenues, net | |||||||
Total current liabilities | |||||||
Long-term deferred revenues | |||||||
Long-term deferred tax liabilities | |||||||
Long-term operating lease liabilities | |||||||
Other long-term liabilities | |||||||
Long-term debt, net | |||||||
Total liabilities | |||||||
Commitments and contingencies (Note 11) | |||||||
Stockholders’ equity: | |||||||
Preferred stock, $0.001 par value, 5,000 shares authorized; no shares issued | |||||||
Common stock, $0.001 par value, 100,000 shares authorized; 50,784 and 49,480 shares issued; 41,639 and 40,335 shares outstanding, respectively | |||||||
Treasury stock at cost, 9,145 shares outstanding, respectively | ( | ) | ( | ) | |||
Additional paid-in capital | |||||||
Retained earnings | |||||||
Accumulated other comprehensive loss | ( | ) | ( | ) | |||
Total stockholders’ equity | |||||||
Total liabilities and stockholders’ equity | $ | $ |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
Revenues: | |||||||||||||||
Product revenues | $ | $ | $ | $ | |||||||||||
Services and other revenues | |||||||||||||||
Total revenues | |||||||||||||||
Cost of revenues: | |||||||||||||||
Cost of product revenues | |||||||||||||||
Cost of services and other revenues | |||||||||||||||
Total cost of revenues | |||||||||||||||
Gross profit | |||||||||||||||
Operating expenses: | |||||||||||||||
Research and development | |||||||||||||||
Selling, general, and administrative | |||||||||||||||
Total operating expenses | |||||||||||||||
Income from operations | |||||||||||||||
Interest and other income (expense), net | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Income before provision for income taxes | |||||||||||||||
Provision for (benefit from) income taxes | ( | ) | ( | ) | |||||||||||
Net income | $ | $ | $ | $ | |||||||||||
Net income per share: | |||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||
Diluted | $ | $ | $ | $ | |||||||||||
Weighted-average shares outstanding: | |||||||||||||||
Basic | |||||||||||||||
Diluted |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(In thousands) | |||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||
Other comprehensive loss, net of reclassification adjustments and taxes: | |||||||||||||||
Unrealized gains (losses) on interest rate swap contracts | ( | ) | ( | ) | ( | ) | |||||||||
Foreign currency translation adjustments | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Other comprehensive loss | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Comprehensive income | $ | $ | $ | $ |
Common Stock | Treasury Stock | Additional Paid-In Capital | Accumulated Earnings | Accumulated Other Comprehensive Income (Loss) | Stockholders’ Equity | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Balances as of December 31, 2018 | $ | ( | ) | $ | ( | ) | $ | $ | $ | ( | ) | $ | |||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | |||||||||||||||||||||||
At the market equity offering, net of costs | — | — | — | — | — | ||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||
Issuance of common stock under employee stock plans | — | — | — | — | |||||||||||||||||||||||||
Tax payments related to restricted stock units | — | — | — | — | ( | ) | — | — | ( | ) | |||||||||||||||||||
Balances as of March 31, 2019 | $ | ( | ) | $ | ( | ) | $ | $ | $ | ( | ) | $ | |||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | ( | ) | ( | ) | |||||||||||||||||||
At the market equity offering, net of costs | — | — | — | — | — | ||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||
Issuance of common stock under employee stock plans | — | — | — | — | |||||||||||||||||||||||||
Tax payments related to restricted stock units | — | — | — | — | ( | ) | — | — | ( | ) | |||||||||||||||||||
Balances as of June 30, 2019 | $ | ( | ) | $ | ( | ) | $ | $ | $ | ( | ) | $ |
Common Stock | Treasury Stock | Additional Paid-In Capital | Accumulated Earnings | Accumulated Other Comprehensive Income (Loss) | Stockholders’ Equity | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Balances as of December 31, 2017 | $ | ( | ) | $ | ( | ) | $ | $ | $ | ( | ) | $ | |||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | |||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||
Issuance of common stock under employee stock plans | — | — | — | — | |||||||||||||||||||||||||
Tax payments related to restricted stock units | — | — | — | — | ( | ) | — | — | ( | ) | |||||||||||||||||||
Balances as of March 31, 2018 | $ | ( | ) | $ | ( | ) | $ | $ | $ | ( | ) | $ | |||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | ( | ) | ( | ) | |||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||
Issuance of common stock under employee stock plans | — | — | — | — | |||||||||||||||||||||||||
Tax payments related to restricted stock units | — | — | — | — | ( | ) | — | — | ( | ) | |||||||||||||||||||
Balances as of June 30, 2018 | $ | ( | ) | $ | ( | ) | $ | $ | $ | ( | ) | $ |
Six months ended June 30, | |||||||
2019 | 2018 | ||||||
(In thousands) | |||||||
Operating Activities | |||||||
Net income | $ | $ | |||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||
Depreciation and amortization | |||||||
Loss on disposal of property and equipment | |||||||
Share-based compensation expense | |||||||
Deferred income taxes | ( | ) | |||||
Amortization of operating lease right-of-use assets | |||||||
Amortization of debt financing fees | |||||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable and unbilled receivables | ( | ) | |||||
Inventories | ( | ) | ( | ) | |||
Prepaid expenses | |||||||
Other current assets | ( | ) | ( | ) | |||
Investment in sales-type leases | ( | ) | ( | ) | |||
Prepaid commissions | |||||||
Other long-term assets | ( | ) | |||||
Accounts payable | ( | ) | |||||
Accrued compensation | ( | ) | |||||
Accrued liabilities | ( | ) | |||||
Deferred revenues | |||||||
Operating lease liabilities | ( | ) | |||||
Other long-term liabilities | |||||||
Net cash provided by operating activities | |||||||
Investing Activities | |||||||
Software development for external use | ( | ) | ( | ) | |||
Purchases of property and equipment | ( | ) | ( | ) | |||
Net cash used in investing activities | ( | ) | ( | ) | |||
Financing Activities | |||||||
Repayment of debt and revolving credit facility | ( | ) | ( | ) | |||
At the market offering, net of offering costs | |||||||
Proceeds from stock issuances under stock-based compensation plans | |||||||
Employees’ taxes paid related to restricted stock units | ( | ) | ( | ) | |||
Net cash (used in) provided by financing activities | ( | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | |||||||
Net increase in cash and cash equivalents | |||||||
Cash and cash equivalents at beginning of period | |||||||
Cash and cash equivalents at end of period | $ | $ | |||||
Supplemental disclosure of non-cash activities | |||||||
Unpaid purchases of property and equipment | $ | $ | |||||
Transfers between inventory and property and equipment, net | $ | $ | |||||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ | $ |
January 1, 2019 | |||||||||||
Pre-ASC 842 Balances | ASC 842 Adoption Impact | Post-ASC 842 Balances | |||||||||
(In thousands) | |||||||||||
Operating lease right-of-use assets | $ | $ | $ | ||||||||
Accrued liabilities (1) | |||||||||||
Long-term operating lease liabilities | |||||||||||
Other long-term liabilities (2) | ( | ) |
(1) | Adjustment represents the current portion of the operating lease liabilities of $ |
(2) | Adjustment represents the reclassification of deferred rent to reduce the operating lease right-of-use assets. |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(In thousands) | |||||||||||||||
Hardware and software | $ | $ | $ | $ | |||||||||||
Consumables | |||||||||||||||
Other | |||||||||||||||
Total product revenues | $ | $ | $ | $ |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(In thousands) | |||||||||||||||
United States | $ | $ | $ | $ | |||||||||||
Rest of world (1) | |||||||||||||||
Total revenues | $ | $ | $ | $ |
(1) | No individual country represented more than 10% of the respective totals. |
June 30, 2019 | December 31, 2018 | ||||||
(In thousands) | |||||||
Short-term unbilled receivables - included in accounts receivable and unbilled receivables | $ | $ | |||||
Long-term unbilled receivables - included in other long-term assets | |||||||
Total contract assets | $ | $ | |||||
Short-term deferred revenues, net | $ | $ | |||||
Long-term deferred revenues | |||||||
Total contract liabilities | $ | $ |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||
Weighted-average shares outstanding — basic | |||||||||||||||
Effect of dilutive securities from stock award plans | |||||||||||||||
Weighted-average shares outstanding — diluted | |||||||||||||||
Net income per share - basic | $ | $ | $ | $ | |||||||||||
Net income per share - diluted | $ | $ | $ | $ | |||||||||||
Anti-dilutive weighted-average shares related to stock award plans |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(In thousands) | |||||||||||||||
Interest rate swap contracts | $ | $ | $ | $ | |||||||||||
Total financial assets | $ | $ | $ | $ |
June 30, 2019 | December 31, 2018 | ||||||
(In thousands) | |||||||
Inventories: | |||||||
Raw materials | $ | $ | |||||
Work in process | |||||||
Finished goods | |||||||
Total inventories | $ | $ | |||||
Other long-term assets: | |||||||
Capitalized software, net | $ | $ | |||||
Unbilled receivables | |||||||
Other assets | |||||||
Total other long-term assets, net | $ | $ | |||||
Accrued liabilities: | |||||||
Operating lease liabilities, current portion | $ | $ | |||||
Advance payments from customers | |||||||
Rebates and lease buyouts | |||||||
Group purchasing organization fees | |||||||
Taxes payable | |||||||
Other accrued liabilities | |||||||
Total accrued liabilities | $ | $ |
Three months ended June 30, | |||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||
Foreign currency translation adjustments | Unrealized gain (loss) on interest rate swap hedges | Total | Foreign currency translation adjustments | Unrealized gain (loss) on interest rate swap hedges | Total | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Beginning balance | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | |||||||||
Other comprehensive income (loss) before reclassifications | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||
Amounts reclassified from other comprehensive income (loss), net of tax | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||
Net current-period other comprehensive income (loss), net of tax | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||
Ending balance | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) |
Six months ended June 30, | |||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||
Foreign currency translation adjustments | Unrealized gain (loss) on interest rate swap hedges | Total | Foreign currency translation adjustments | Unrealized gain (loss) on interest rate swap hedges | Total | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Beginning balance | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | |||||||||
Other comprehensive income (loss) before reclassifications | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||
Amounts reclassified from other comprehensive income (loss), net of tax | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||
Net current-period other comprehensive income (loss), net of tax | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||
Ending balance | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) |
June 30, 2019 | December 31, 2018 | ||||||
(In thousands) | |||||||
Equipment | $ | $ | |||||
Furniture and fixtures | |||||||
Leasehold improvements | |||||||
Software | |||||||
Construction in progress | |||||||
Property and equipment, gross | |||||||
Accumulated depreciation and amortization | ( | ) | ( | ) | |||
Total property and equipment, net | $ | $ |
June 30, 2019 | December 31, 2018 | ||||||
(In thousands) | |||||||
United States | $ | $ | |||||
Rest of world (1) | |||||||
Total property and equipment, net | $ | $ |
(1) |
December 31, 2018 | Additions | Foreign currency exchange rate fluctuations | June 30, 2019 | ||||||||||||
(In thousands) | |||||||||||||||
Goodwill | $ | $ | $ | ( | ) | $ |
June 30, 2019 | |||||||||||||||||
Gross carrying amount (1) | Accumulated amortization | Foreign currency exchange rate fluctuations | Net carrying amount | Useful life (years) | |||||||||||||
(In thousands, except for years) | |||||||||||||||||
Customer relationships | $ | $ | ( | ) | $ | ( | ) | $ | 1 - 30 | ||||||||
Acquired technology | ( | ) | 3 - 20 | ||||||||||||||
Backlog | ( | ) | 4 | ||||||||||||||
Trade names | ( | ) | 1 - 12 | ||||||||||||||
Patents | ( | ) | 2 - 20 | ||||||||||||||
Total intangibles assets, net | $ | $ | ( | ) | $ | ( | ) | $ |
December 31, 2018 | |||||||||||||||||
Gross carrying amount (1) | Accumulated amortization | Foreign currency exchange rate fluctuations | Net carrying amount | Useful life (years) | |||||||||||||
(In thousands, except for years) | |||||||||||||||||
Customer relationships | $ | $ | ( | ) | $ | ( | ) | $ | 1 - 30 | ||||||||
Acquired technology | ( | ) | 3 - 20 | ||||||||||||||
Backlog | ( | ) | 1 - 4 | ||||||||||||||
Trade names | ( | ) | 1 - 12 | ||||||||||||||
Patents | ( | ) | 2 - 20 | ||||||||||||||
Non-compete agreements | ( | ) | 3 | ||||||||||||||
Total intangibles assets, net | $ | $ | ( | ) | $ | ( | ) | $ |
(1) | The differences in gross carrying amounts between periods are primarily due to the write-off of fully amortized intangible assets. |
June 30, 2019 | |||
(In thousands) | |||
Remaining six months of 2019 | $ | ||
2020 | |||
2021 | |||
2022 | |||
2023 | |||
Thereafter | |||
Total | $ |
December 31, 2018 | Borrowings | Repayment / Amortization | June 30, 2019 | ||||||||||||
(In thousands) | |||||||||||||||
Term loan facility | $ | $ | $ | ( | ) | $ | |||||||||
Revolving credit facility | |||||||||||||||
Total debt under the facilities | ( | ) | |||||||||||||
Less: Deferred issuance cost | ( | ) | ( | ) | |||||||||||
Total long-term debt, net of deferred issuance cost | $ | $ | $ | ( | ) | $ |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(In thousands) | |||||||||||||||
Sales-type lease revenues | $ | $ | $ | $ | |||||||||||
Interest income on sales-type lease receivables | $ | $ |
June 30, 2019 | December 31, 2018 | ||||||
(In thousands) | |||||||
Net minimum lease payments to be received | $ | $ | |||||
Less: Unearned interest income portion | ( | ) | ( | ) | |||
Net investment in sales-type leases | |||||||
Less: Current portion (1) | ( | ) | ( | ) | |||
Long-term net investment in sales-type leases | $ | $ |
(1) | The current portion of the net investment in sales-type leases is included in other current assets in the Condensed Consolidated Balance Sheets. |
June 30, 2019 | |||
(In thousands) | |||
Remaining six months of 2019 | $ | ||
2020 | |||
2021 | |||
2022 | |||
2023 | |||
Thereafter | |||
Total future minimum sales-type lease payments | $ | ||
Present value adjustment | ( | ) | |
Total net investment in sales-type leases | $ |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(In thousands) | |||||||||||||||
Rental income | $ | $ | $ | $ |
June 30, 2019 | |||
(In thousands) | |||
Remaining six months of 2019 | |||
2020 | |||
2021 | |||
2022 | |||
2023 | |||
Thereafter | |||
Total future minimum operating lease payments | $ |
June 30, 2019 | |||
(In thousands) | |||
Remaining six months of 2019 | $ | ||
2020 | |||
2021 | |||
2022 | |||
2023 | |||
Thereafter | |||
Total operating lease payments | $ | ||
Present value adjustment | ( | ) | |
Total operating lease liabilities (1) | $ |
(1) | Amount consists of a current and long-term portion of operating lease liabilities of $ |
December 31, 2018 | |||
(In thousands) | |||
2019 | $ | ||
2020 | |||
2021 | |||
2022 | |||
2023 | |||
Thereafter | |||
Total minimum future lease payments | $ |
Six months ended June 30, 2019 | |||
(In thousands) | |||
Cash paid for amounts included in the measurement of lease liabilities | $ | ||
Right-of-use assets obtained in exchange for new lease liabilities |
June 30, 2019 | ||
Weighted-average remaining lease term, years | ||
Weighted-average discount rate, % | % |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(In thousands) | |||||||||||||||
Cost of product and service revenues | $ | $ | $ | $ | |||||||||||
Research and development | |||||||||||||||
Selling, general, and administrative | |||||||||||||||
Total share-based compensation expense | $ | $ | $ | $ |
Three months ended June 30, | Six months ended June 30, | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
Stock options | |||||||||||
Expected life, years | |||||||||||
Expected volatility, % | % | % | % | % | |||||||
Risk-free interest rate, % | % | % | % | % | |||||||
Estimated forfeiture rate, % | % | % | % | % | |||||||
Dividend yield, % | % | % | % | % |
Three months ended June 30, | Six months ended June 30, | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
Employee stock purchase plan shares | |||||||||||
Expected life, years | 0.5 - 2.0 | 0.5 - 2.0 | 0.5 - 2.0 | 0.5 - 2.0 | |||||||
Expected volatility, % | 28.2% - 38.4% | 27.7% - 33.8% | 28.2% - 38.4% | 27.7% - 33.8% | |||||||
Risk-free interest rate, % | 1.3% - 2.7% | 0.7% - 2.3% | 1.3% - 2.7% | 0.7% - 2.3% | |||||||
Dividend yield, % | % | % | % | % |
Number of Shares | Weighted-Average Exercise Price | Weighted-Average Remaining Years | Aggregate Intrinsic Value | |||||||||
(In thousands, except per share data) | ||||||||||||
Outstanding at December 31, 2018 | $ | $ | ||||||||||
Granted | ||||||||||||
Exercised | ( | ) | ||||||||||
Expired | ( | ) | ||||||||||
Forfeited | ( | ) | ||||||||||
Outstanding at June 30, 2019 | $ | $ | ||||||||||
Exercisable at June 30, 2019 | $ | $ | ||||||||||
Vested and expected to vest at June 30, 2019 and thereafter | $ | $ |
Number of Shares | Weighted-Average Grant Date Fair Value | Weighted-Average Remaining Years | Aggregate Intrinsic Value | |||||||||
(In thousands, except per share data) | ||||||||||||
Restricted stock units | ||||||||||||
Outstanding at December 31, 2018 | $ | $ | ||||||||||
Granted (Awarded) | ||||||||||||
Vested (Released) | ( | ) | ||||||||||
Forfeited | ( | ) | ||||||||||
Outstanding and unvested at June 30, 2019 | $ | $ |
Number of Shares | Weighted-Average Grant Date Fair Value | |||||
(In thousands, except per share data) | ||||||
Restricted stock awards | ||||||
Outstanding at December 31, 2018 | $ | |||||
Granted (Awarded) | ||||||
Vested (Released) | ( | ) | ||||
Forfeited | ||||||
Outstanding and unvested at June 30, 2019 | $ |
Number of Shares | Weighted-Average Grant Date Fair Value Per Unit | |||||
(In thousands, except per share data) | ||||||
Outstanding at December 31, 2018 | $ | |||||
Granted | ||||||
Vested | ( | ) | ||||
Forfeited | ( | ) | ||||
Outstanding and unvested at June 30, 2019 | $ |
Number of Shares | ||
(In thousands) | ||
Share options outstanding | ||
Non-vested restricted share awards | ||
Shares authorized for future issuance | ||
ESPP shares available for future issuance | ||
Total shares reserved for future issuance |
• | our expectations regarding our future pipeline and product bookings; |
• | the extent and timing of future revenues, including the amounts of our current backlog; |
• | the size or growth of our market or market share; |
• | our ability to acquire companies, businesses, products or technologies on commercially reasonable terms and integrate such acquisitions effectively; |
• | our continued investment in, and ability to deliver on, our key business strategies of developing differentiated solutions, increasing penetration of new markets, and expanding our solutions through acquisitions and partnerships, as well as our goal of advancing our platform with new product introductions annually; |
• | our ability to deliver on our vision of the Autonomous Pharmacy, as well as our plans to integrate our current offerings and technologies on cloud infrastructure and invest in certain key areas as we execute on this vision; |
• | continued investment in our vision of the Autonomous Pharmacy, our beliefs about the anticipated benefits of such investments, and our expectations regarding continued growth in subscription and cloud-based offerings as we execute on this vision; |
• | our belief that continued investment in our key business strategies will continue to generate our revenue and earnings growth while supporting our customers’ initiatives and needs; |
• | our belief that our solutions and our vision for the future of medication management automation are strongly aligned with long-term trends in the healthcare market and well-positioned to address the evolving needs of the healthcare institutions; |
• | the bookings, revenue, and margin opportunity presented by new products, emerging markets, and international markets; |
• | our ability to align our cost structure and headcount with our current business expectations; |
• | the operating margins or earnings per share goals we may set; |
• | our ability to protect our intellectual property and operate our business without infringing upon the intellectual property rights of others; |
• | the expected impacts of new accounting standards or changes to existing accounting standards; |
• | our expected future uses of cash and the sufficiency of our sources of funding; and |
• | our ability to generate cash from operations and our estimates regarding the sufficiency of our cash resources. |
• | Development of a differentiated platform. We intend to continue our focus on further penetrating existing markets through technological leadership and our differentiated platform by consistently innovating our product and service offerings and maintaining our customer-oriented product installation process. We have developed numerous technologies that solve significant challenges for our customers. For example, our XR2 Automated Central Pharmacy System is designed to allow pharmacies to more fully automate medication dispensing, and help to reduce labor cost, decrease medication waste, and improve patient safety; our IVX Workflow solution is designed to reduce medication compounding errors compared to manual compounding methods; and our Performance Center offering leverages predictive analytics to help pharmacies be more proactive in addressing drug shortages. |
• | Delivery of our solutions to new markets. We seek to increase penetration of new markets, such as non-acute care and international markets by: launching new products and technologies that are specific to the needs of those markets; building and establishing direct sales, distribution or other capabilities when and where it is appropriate; partnering with companies that have sales, distribution, or other capabilities that we do not possess; and increasing customer awareness of safety issues in the administration of medications. Consistent with this strategy, we have made investments in expanding our sales team and marketing to new customers. Our international efforts have focused primarily on two markets: Western Europe and the Middle East. We have also expanded our sales efforts to medication adherence customers in the United States. |
• | Expansion of our solutions through acquisitions and partnerships. We believe that expansion of our product lines through acquisitions and partnerships to meet our customers’ changing and evolving expectations is a key component to our historical and future success. Building on the successful acquisitions of the past few years, we intend to continue to explore acquisition and partnership opportunities that are a strategic fit for our business, including in support of our Autonomous Pharmacy vision. We have also developed relationships with major providers of hospital information management systems with the goal of enhancing the interoperability of our products with their systems. |
• | Revenue recognition; |
• | Allowance for doubtful accounts and notes receivable from investment in sales-type leases; |
• | Leases; |
• | Inventory; |
• | Software development costs; |
• | Valuation and impairment of goodwill, intangible assets, and other long-lived assets; |
• | Share-based compensation; and |
• | Accounting for income taxes. |
Three months ended June 30, | |||||||||||||
Change in | |||||||||||||
2019 | 2018 | $ | % | ||||||||||
(Dollars in thousands) | |||||||||||||
Product revenues | $ | 158,379 | $ | 134,636 | $ | 23,743 | 18% | ||||||
Percentage of total revenues | 73% | 71% | |||||||||||
Services and other revenues | 59,034 | 54,037 | 4,997 | 9% | |||||||||
Percentage of total revenues | 27% | 29% | |||||||||||
Total revenues | $ | 217,413 | $ | 188,673 | $ | 28,740 | 15% |
Six months ended June 30, | |||||||||||||
Change in | |||||||||||||
2019 | 2018 | $ | % | ||||||||||
(Dollars in thousands) | |||||||||||||
Product revenues | $ | 303,989 | $ | 265,295 | $ | 38,694 | 15% | ||||||
Percentage of total revenues | 72% | 71% | |||||||||||
Services and other revenues | 115,941 | 105,997 | 9,944 | 9% | |||||||||
Percentage of total revenues | 28% | 29% | |||||||||||
Total revenues | $ | 419,930 | $ | 371,292 | $ | 48,638 | 13% |
Three months ended June 30, | |||||||||||||
Change in | |||||||||||||
2019 | 2018 | $ | % | ||||||||||
(Dollars in thousands) | |||||||||||||
Cost of revenues: | |||||||||||||
Cost of product revenues | $ | 84,583 | $ | 75,076 | $ | 9,507 | 13% | ||||||
As a percentage of related revenues | 53% | 56% | |||||||||||
Cost of services and other revenues | 28,785 | 24,814 | 3,971 | 16% | |||||||||
As a percentage of related revenues | 49% | 46% | |||||||||||
Total cost of revenues | $ | 113,368 | $ | 99,890 | $ | 13,478 | 13% | ||||||
As a percentage of total revenues | 52% | 53% | |||||||||||
Gross profit | $ | 104,045 | $ | 88,783 | $ | 15,262 | 17% | ||||||
Gross margin | 48% | 47% |
Six months ended June 30, | |||||||||||||
Change in | |||||||||||||
2019 | 2018 | $ | % | ||||||||||
(Dollars in thousands) | |||||||||||||
Cost of revenues: | |||||||||||||
Cost of product revenues | $ | 163,394 | $ | 150,493 | $ | 12,901 | 9% | ||||||
As a percentage of related revenues | 54% | 57% | |||||||||||
Cost of services and other revenues | 55,374 | 49,561 | 5,813 | 12% | |||||||||
As a percentage of related revenues | 48% | 47% | |||||||||||
Total cost of revenues | $ | 218,768 | $ | 200,054 | $ | 18,714 | 9% | ||||||
As a percentage of total revenues | 52% | 54% | |||||||||||
Gross profit | $ | 201,162 | $ | 171,238 | $ | 29,924 | 17% | ||||||
Gross margin | 48% | 46% |
Three months ended June 30, | |||||||||||||
Change in | |||||||||||||
2019 | 2018 | $ | % | ||||||||||
(Dollars in thousands) | |||||||||||||
Operating expenses: | |||||||||||||
Research and development | $ | 16,848 | $ | 15,512 | $ | 1,336 | 9% | ||||||
As a percentage of total revenues | 8% | 8% | |||||||||||
Selling, general, and administrative | 68,434 | 65,937 | 2,497 | 4% | |||||||||
As a percentage of total revenues | 31% | 35% | |||||||||||
Total operating expenses | $ | 85,282 | $ | 81,449 | $ | 3,833 | 5% | ||||||
As a percentage of total revenues | 39% | 43% | |||||||||||
Interest and other income (expense), net | $ | (1,629 | ) | $ | (896 | ) | $ | (733 | ) | 82% |
Six months ended June 30, | |||||||||||||
Change in | |||||||||||||
2019 | 2018 | $ | % | ||||||||||
(Dollars in thousands) | |||||||||||||
Operating expenses: | |||||||||||||
Research and development | $ | 32,926 | $ | 32,049 | $ | 877 | 3% | ||||||
As a percentage of total revenues | 8% | 9% | |||||||||||
Selling, general, and administrative | 136,712 | 131,222 | 5,490 | 4% | |||||||||
As a percentage of total revenues | 33% | 35% | |||||||||||
Total operating expenses | $ | 169,638 | $ | 163,271 | $ | 6,367 | 4% | ||||||
As a percentage of total revenues | 40% | 44% | |||||||||||
Interest and other income (expense), net | $ | (3,039 | ) | $ | (3,625 | ) | $ | 586 | (16)% |
Three months ended June 30, | |||||||||||||
Change in | |||||||||||||
2019 | 2018 | $ | % | ||||||||||
(Dollars in thousands) | |||||||||||||
Provision for (benefit from) income taxes | $ | 1,158 | $ | (150 | ) | $ | 1,308 | (872)% |
Six months ended June 30, | |||||||||||||
Change in | |||||||||||||
2019 | 2018 | $ | % | ||||||||||
(Dollars in thousands) | |||||||||||||
Provision for (benefit from) income taxes | $ | 9,225 | $ | (4,966 | ) | $ | 14,191 | (286)% |
June 30, 2019 | December 31, 2018 | ||||||
(In thousands) | |||||||
Cash | $ | 87,482 | $ | 67,192 | |||
Working capital | $ | 218,455 | $ | 192,554 |
Six months ended June 30, | |||||||
2019 | 2018 | ||||||
(In thousands) | |||||||
Net cash provided by (used in): | |||||||
Operating activities | $ | 53,760 | $ | 40,727 | |||
Investing activities | (31,950 | ) | (28,076 | ) | |||
Financing activities | (1,583 | ) | 555 | ||||
Effect of exchange rate changes on cash and cash equivalents | 63 | 538 | |||||
Net increase in cash and cash equivalents | $ | 20,290 | $ | 13,744 |
Payments due by period | |||||||||||||||||||
Total | Remainder of 2019 | 2020 - 2021 | 2022 - 2023 | 2024 and thereafter | |||||||||||||||
(In thousands) | |||||||||||||||||||
Operating leases (1) | $ | 81,583 | $ | 7,239 | $ | 26,324 | $ | 20,211 | $ | 27,809 | |||||||||
Purchase obligations (2) | 61,252 | 53,884 | 7,076 | 128 | 164 | ||||||||||||||
Term loan facility (3) | 80,000 | — | 80,000 | — | — | ||||||||||||||
Total (4) (5) | $ | 222,835 | $ | 61,123 | $ | 113,400 | $ | 20,339 | $ | 27,973 |
(1) | Commitments under operating leases relate primarily to leased office buildings, data centers, office equipment, and vehicles. |
(2) | We purchase components from a variety of suppliers and use contract manufacturers to provide manufacturing services for our products. During the normal course of business, we issue purchase orders with estimates of our requirements several months ahead of the delivery dates. These amounts are associated with agreements that are enforceable and legally binding. The amounts under such contracts are included in the table above because we believe that cancellation of these contracts is unlikely and we expect to make future cash payments according to the contract terms or in similar amounts for similar materials. |
(3) | Amount shown for term loan is principal repayments only. Due to use of interest rate swaps, the cash interest expense is partly variable and partly fixed, and is not reflected in the above table. Refer to Note 8, Debt and Credit Agreements, of the Notes to Condensed Consolidated Financial Statements included in this quarterly report. |
(4) | We have recorded $9.8 million for uncertain tax positions under long-term liabilities as of June 30, 2019 in accordance with U.S. GAAP. As these liabilities do not reflect actual tax assessments, the timing and amount of payments we might be required to make will depend upon a number of factors. Accordingly, as the timing and amount of payment cannot be estimated, the $9.8 million in uncertain tax position liabilities have not been included in the table above. |
(5) | Refer to Note 11, Commitments and Contingencies, of the Notes to Condensed Consolidated Financial Statements included in this quarterly report. |
• | certain competitors may offer or have the ability to offer a broader range of solutions in the marketplace that we are unable to match; |
• | certain competitors may develop alternative solutions to the customer problems our products are designed to solve that may provide a better customer outcome or a lower cost of operation; |
• | certain competitors may develop new features or capabilities for their products not previously offered that could compete directly with our products; |
• | competitive pressures could result in increased price competition for our products and services, fewer customer orders, and reduced gross margins, any of which could harm our business; |
• | current and potential competitors may make strategic acquisitions or establish cooperative relationships among themselves or with third parties, including larger, more established healthcare supply companies, such as the acquisition of Talyst Systems, LLC by Swisslog Healthcare, thereby increasing their ability to develop and offer a broader suite of products and services to address the needs of our prospective customers; |
• | our competitive environment has recently experienced a significant degree of consolidation which could lead to competitors developing new business models that require us to adapt how we market, sell, or distribute our products; for example, in the fourth quarter of 2018, we initiated a company-wide organizational realignment in order to align our organizational infrastructure to centrally manage our business, including the marketing, sale, and distribution of our products, in part to address the continuing consolidation in the healthcare industry; |
• | other established or emerging companies may enter the medication management and supply chain solutions market, or the medication adherence market, with products and services that are preferred by our current and potential customers based on factors such as features, capabilities, or cost; |
• | our competitors may develop, license, or incorporate new or emerging technologies or devote greater resources to the development, promotion, and sale of their products and services than we do; |
• | certain competitors have greater brand name recognition and a more extensive installed base of medication and supply dispensing systems or other products and services than we do, and such advantages could be used to increase their market share; |
• | certain competitors may have existing business relationships with our current and potential customers, which may cause these customers to purchase medication and supply dispensing systems or automation solutions from these competitors; and |
• | our competitors may secure products and services from suppliers on more favorable terms or secure exclusive arrangements with suppliers or buyers that may impede the sales of our products and services. |
• | difficulties in combining previously separate businesses into a single unit and the complexity of managing a more dispersed organization as sites are acquired; |
• | complying with international labor laws that may restrict our ability to right-size organizations and gain synergies across acquired operations; |
• | complying with regulatory requirements, such as those of the Food and Drug Administration, that we were not previously subject to; |
• | the substantial costs that may be incurred and the substantial diversion of management's attention from day-to-day business when evaluating and negotiating such transactions and then integrating an acquired business; |
• | discovery, after completion of the acquisition, of liabilities assumed from the acquired business or of assets acquired that are broader in scope and magnitude or are more difficult to manage than originally assumed; |
• | failure to achieve anticipated benefits such as cost savings and revenue enhancements; |
• | difficulties related to assimilating the products or key personnel of an acquired business; |
• | failure to understand and compete effectively in markets in which we have limited previous experience; and |
• | difficulties in integrating newly acquired products and solutions into a logical offering that our customers understand and embrace. |
• | limit our ability to borrow additional funds for working capital, capital expenditures, acquisitions or other general business purposes; |
• | limit our ability to use our cash flow or obtain additional financing for future working capital, capital expenditures, acquisitions or other general business purposes; |
• | require us to use a substantial portion of our cash flow from operations to make debt service payments; |
• | limit our flexibility to plan for, or react to, changes in our business and industry; |
• | place us at a competitive disadvantage compared to our less leveraged competitors; and |
• | increase our vulnerability to the impact of adverse economic and industry conditions. |
• | inability or failure to expand product bookings and sales; |
• | inability to maintain business relationships with customers and suppliers of newly acquired companies, such as Ateb and InPharmics, due to post-acquisition disruption; |
• | inability or failure to effectively coordinate sales and marketing efforts to communicate the capabilities of the combined company; |
• | inability or failure to successfully integrate and harmonize financial reporting and information technology systems; |
• | inability or failure to achieve the expected operational and cost efficiencies; and |
• | loss of key employees. |
• | our reliance on distributors for the sale and post-sale support of our automated dispensing systems outside the United States and Canada; |
• | the difficulty of managing an organization operating in various countries; |
• | political sentiment against international outsourcing of production; |
• | reduced protection for intellectual property rights, particularly in jurisdictions that have less developed intellectual property regimes; |
• | changes in foreign regulatory requirements; |
• | the requirement to comply with a variety of international laws and regulations, including privacy and security, labor, import, export, trade, environmental standards, product compliance, tax, anti-bribery, and employment laws; |
• | fluctuations in currency exchange rates and difficulties in repatriating funds from certain countries; |
• | additional investment, coordination, and lead-time necessary to successfully interface our automation solutions with the existing information systems of our customers or potential customers outside of the United States; and |
• | political unrest, terrorism, and the potential for other hostilities in areas in which we have facilities or operations. |
• | incur or assume liens or additional debt or provide guarantees in respect of obligations or other persons; |
• | issue redeemable preferred stock; |
• | pay dividends or distributions or redeem or repurchase capital stock; |
• | prepay, redeem or repurchase certain debt; |
• | make loans, investments, acquisitions (including acquisitions of exclusive licenses) and capital expenditures; |
• | enter into agreements that restrict distributions from our subsidiaries; |
• | sell assets and capital stock of our subsidiaries; |
• | enter into certain transactions with affiliates; and |
• | consolidate or merge with or into, or sell substantially all of our assets to, another person. |
• | our ability to successfully install our products on a timely basis and meet other contractual obligations necessary to recognize revenue; |
• | our ability to continue cost reduction efforts; |
• | the size, product mix, and timing of orders for our medication and supply dispensing systems, and our medication packaging systems, and their installation and integration; |
• | the overall demand for healthcare medication management and supply chain solutions and medication adherence solutions; |
• | changes in pricing policies by us or our competitors; |
• | the number, timing, and significance of product enhancements and new product announcements by us or our competitors; |
• | the timing and significance of any acquisition or business development transactions that we may consider or negotiate and the revenues, costs, and earnings that may be associated with these transactions; |
• | the relative proportions of revenues we derive from products and services; |
• | fluctuations in the percentage of sales attributable to our international business; |
• | our customers' budget cycles; |
• | changes in our operating expenses and our ability to stabilize expenses; |
• | expenses incurred to remediate product quality, security, or safety issues; |
• | our ability to generate cash from our accounts receivable on a timely basis; |
• | the performance of our products; |
• | changes in our business strategy; |
• | macroeconomic and political conditions, including fluctuations in interest rates, tax increases, availability of credit markets, and trade and tariff actions; and |
• | volatility in our stock price and its effect on equity-based compensation expense. |
• | actual or anticipated changes in our operating results; |
• | whether our operating results or forecasts meet the expectations of securities analysts or investors; |
• | developments in our relationships with corporate customers; |
• | developments with respect to recently acquired businesses; |
• | changes in the ratings of our common stock by securities analysts or changes in their earnings estimates; |
• | announcements by us or our competitors of technological innovations or new products; |
• | announcements by us or our competitors of acquisitions of businesses, products or technologies; or other significant transactions by us or our competitors such as strategic partnerships or divestitures; |
• | actions by stockholders or short sellers of our common stock; |
• | the level of demand for our common stock, including short interest in our common stock; or |
• | general economic and market conditions. |
Incorporated By Reference | ||||||||||
Exhibit Number | Exhibit Description | Form | File No. | Exhibit | Filing Date | |||||
3.1 | 10-Q | 000-33043 | 3.1 | 9/20/2001 | ||||||
3.2 | 10-Q | 000-33043 | 3.2 | 8/9/2010 | ||||||
3.3 | 10-K | 000-33043 | 3.2 | 3/28/2003 | ||||||
3.4 | 10-Q | 000-33043 | 3.4 | 5/4/2018 | ||||||
4.1 | Reference is made to Exhibits 3.1, 3.2, 3.3 and 3.4 | |||||||||
4.2 | S-1/A | 333-57024 | 4.1 | 7/24/2001 | ||||||
10.1* | S-8 | 333-231669 | 99.1 | 5/22/2019 | ||||||
31.1+ | ||||||||||
31.2+ | ||||||||||
32.1+(1) | ||||||||||
101.INS+ | Inline XBRL Instance Document - The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||||
101.SCH+ | Inline XBRL Taxonomy Extension Schema Document | |||||||||
101.CAL+ | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||||
101.DEF+ | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||||
101.LAB+ | Inline XBRL Taxonomy Extension Labels Linkbase Document | |||||||||
101.PRE+ | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||||
104+ | Cover Page Interactive Data File - The cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
+ | Filed herewith. |
* | Indicates a management contract, compensation plan, or arrangement. |
(1) | This certification accompanies the Form 10-Q to which it relates, is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of the registrant under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of the Form 10-Q), irrespective of any general incorporation language contained in such filing. |
OMNICELL, INC. | ||||
Date: | August 2, 2019 | By: | /s/ Peter J. Kuipers | |
Peter J. Kuipers, Executive Vice President & Chief Financial Officer |
August 2, 2019 | /s/ Randall A. Lipps |
Randall A. Lipps | |
President and Chief Executive Officer | |
(Principal Executive Officer) |
August 2, 2019 | /s/ Peter J. Kuipers |
Peter J. Kuipers | |
Executive Vice President & Chief Financial Officer | |
(Principal Financial Officer) |
/s/ Randall A. Lipps | /s/ Peter J. Kuipers | |
Randall A. Lipps | Peter J. Kuipers | |
President and Chief Executive Officer | Executive Vice President & Chief Financial Officer | |
(Principal Executive Officer) | (Principal Financial Officer) |
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowances | $ 3,698 | $ 2,582 |
Preferred stock, shares, issued (in shares) | 0 | 0 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares, authorized (in shares) | 5,000,000 | 5,000,000 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares, authorized (in shares) | 100,000,000 | 100,000,000 |
Common Stock, shares, issued (in shares) | 50,784,000 | 49,480,000 |
Common stock, shares, outstanding (in shares) | 41,639,000 | 40,335,000 |
Treasury stock, shares (in shares) | 9,145,000 | 9,145,000 |
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Revenues: | ||||
Total revenues | $ 217,413 | $ 188,673 | $ 419,930 | $ 371,292 |
Cost of revenues: | ||||
Total cost of revenues | 113,368 | 99,890 | 218,768 | 200,054 |
Gross profit | 104,045 | 88,783 | 201,162 | 171,238 |
Operating expenses: | ||||
Research and development | 16,848 | 15,512 | 32,926 | 32,049 |
Selling, general, and administrative | 68,434 | 65,937 | 136,712 | 131,222 |
Total operating expenses | 85,282 | 81,449 | 169,638 | 163,271 |
Income from operations | 18,763 | 7,334 | 31,524 | 7,967 |
Interest and other income (expense), net | (1,629) | (896) | (3,039) | (3,625) |
Income before provision for income taxes | 17,134 | 6,438 | 28,485 | 4,342 |
Provision for (benefit from) income taxes | 1,158 | (150) | 9,225 | (4,966) |
Net income | $ 15,976 | $ 6,588 | $ 19,260 | $ 9,308 |
Net income per share: | ||||
Net income per share - basic (in dollars per share) | $ 0.39 | $ 0.17 | $ 0.47 | $ 0.24 |
Net income per share - diluted (in dollars per share) | $ 0.37 | $ 0.16 | $ 0.45 | $ 0.23 |
Weighted-average shares outstanding: | ||||
Weighted-average shares outstanding — basic (in shares) | 41,371 | 38,970 | 41,033 | 38,804 |
Weighted-average shares outstanding — diluted (in shares) | 42,945 | 40,000 | 42,646 | 39,854 |
Product revenues | ||||
Revenues: | ||||
Total revenues | $ 158,379 | $ 134,636 | $ 303,989 | $ 265,295 |
Cost of revenues: | ||||
Total cost of revenues | 84,583 | 75,076 | 163,394 | 150,493 |
Services and other revenues | ||||
Revenues: | ||||
Total revenues | 59,034 | 54,037 | 115,941 | 105,997 |
Cost of revenues: | ||||
Total cost of revenues | $ 28,785 | $ 24,814 | $ 55,374 | $ 49,561 |
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 15,976 | $ 6,588 | $ 19,260 | $ 9,308 |
Other comprehensive loss, net of reclassification adjustments and taxes: | ||||
Unrealized gains (losses) on interest rate swap contracts | (103) | (90) | (420) | 112 |
Foreign currency translation adjustments | (971) | (4,414) | (302) | (1,942) |
Other comprehensive loss | (1,074) | (4,504) | (722) | (1,830) |
Comprehensive income | $ 14,902 | $ 2,084 | $ 18,538 | $ 7,478 |
Organization and Summary of Significant Accounting Policies |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization and Summary of Significant Accounting Policies | Organization and Summary of Significant Accounting Policies Business Omnicell, Inc. was incorporated in California in 1992 under the name Omnicell Technologies, Inc. and reincorporated in Delaware in 2001 as Omnicell, Inc. The Company’s major products are medication and supply dispensing automation solutions, central pharmacy automation solutions, analytics software, and medication adherence solutions which are sold in its principal market, which is the healthcare industry. The Company’s market is primarily located in the United States and Europe. “Omnicell” or the “Company” collectively refer to Omnicell, Inc. and its subsidiaries. Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements reflect, in the opinion of management, all adjustments, consisting of normal recurring adjustments and accruals, necessary to present fairly the financial position of the Company as of June 30, 2019 and December 31, 2018, the results of operations and comprehensive income for the three and six months ended June 30, 2019 and 2018, and cash flows for the six months ended June 30, 2019 and 2018. Certain information and footnote disclosures normally included in financial statements prepared in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”) have been condensed or omitted in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and accompanying Notes included in the Company’s annual report on Form 10-K for the year ended December 31, 2018 filed with the SEC on February 27, 2019, except as discussed in the sections entitled “Lessor Leases”, “Lessee Leases”, and “Recently Adopted Authoritative Guidance” below. The Company’s results of operations and comprehensive income for the three and six months ended June 30, 2019 and cash flows for the six months ended June 30, 2019 are not necessarily indicative of results that may be expected for the year ending December 31, 2019, or for any future period. Principles of Consolidation The Condensed Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Segment Reporting The Company's Chief Operating Decision Maker ("CODM") is its Chief Executive Officer. The CODM allocates resources and evaluates the performance of the Company using information about its revenues, gross profit, income from operations, and other key financial data. The Company previously operated and reported its business in two segments: Automation and Analytics, and Medication Adherence. In the fourth quarter of 2018, the Company introduced its vision of the Autonomous Pharmacy, a more fully automated and digitized system of medication management, in order to address changes in the healthcare industry as the Company executes on its plan to deliver end-to-end solutions with greater emphasis on automating manual processes for its customers. These industry changes include the continuing consolidation of healthcare systems, rising pharmaceutical costs, and increased scrutiny on controlled substances. In an effort to deliver on its strategic vision, the Company initiated a company-wide organizational realignment in the fourth quarter of 2018 to centrally manage its business operations, including the development and marketing of all of the Company’s products, sales and distribution, supply chain and inventory management, as well as regulatory and quality functions. As a result of this organizational realignment, all significant operating decisions are based upon an analysis of the Company as one operating segment. Therefore, effective January 1, 2019, the Company started reporting as only one operating segment, which is the same as the reporting segment. Accordingly, prior period information has been revised to conform with current period presentation. Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Company’s Condensed Consolidated Financial Statements and accompanying Notes. Management bases its estimates on historical experience and various other assumptions believed to be reasonable. Although these estimates are based on management’s best knowledge of current events and actions that may impact the Company in the future, actual results may be different from the estimates. The Company’s critical accounting policies are those that affect its financial statements materially and involve difficult, subjective or complex judgments by management. Those policies are revenue recognition; accounts receivable and notes receivable from investment in sales-type leases; operating lease right-of-use assets and liabilities; inventory valuation; capitalized software development costs; impairment of goodwill; purchased intangibles and long-lived assets; share-based compensation; and accounting for income taxes. Lessor Leases The Company determines if an arrangement is a lease at inception. The transaction price is allocated to separate performance obligations, generally consisting of hardware and software products, installation, and post-installation technical support, proportionally based on the standalone selling price of each performance obligation. Standalone selling price is best evidenced by the price the Company charges for the good or service when selling it separately in similar circumstances to similar customers. Other than for the renewal of annual support services contracts, the Company’s products and services are not generally sold separately. The Company uses an amount discounted from the list price as a best estimated selling price. Sales-Type Leases The Company enters into non-cancelable sales-type lease arrangements, most of which do not have an option to extend the lease term. At the end of the lease term, the customer must either return the equipment or negotiate a new agreement, resulting in a new purchase or lease transaction. Failure of the customer to either return the equipment or negotiate a new agreement results in the contract becoming a month-to-month rental. Certain sales-type leases automatically renew for successive one year periods at the end of each lease term with written notice from the customer. The Company’s sales-type lease agreements do not contain any material residual value guarantees. For sales-type leases, the Company recognizes revenues for its hardware and software products, net of lease execution costs, post-installation product maintenance, and technical support, at the net present value of the lease payment stream upon customer acceptance. The Company recognizes service revenues associated with the sales-type leases ratably over the term of the agreement in service revenues on the Condensed Consolidated Statements of Operations. The Company recognizes interest income from sales-type leases using the effective interest method. Both hardware and software revenues, and interest income from sales-types leases are recorded in product revenues on the Condensed Consolidated Statements of Operations. The Company optimizes cash flows by selling a majority of its non-U.S. government sales-type leases to third-party leasing finance companies on a non-recourse basis. The Company has no obligation to the leasing company once the lease has been sold. Some of the Company's sales-type leases, mostly those relating to U.S. government hospitals which comprise approximately 50% of the lease receivable balance, are retained in-house. Operating Leases The Company entered into certain leasing agreements that were classified as operating leases prior to the adoption of the new lease accounting standard. Those agreements in place prior to January 1, 2019 will continue to be treated as operating leases, however any new leasing agreements entered into on or after January 1, 2019 under these programs are classified and accounted for as sales-type leases in accordance with the new lease accounting standard. The operating lease arrangements entered into prior to January 1, 2019 are non-cancelable, and most automatically renew for successive one year periods at the end of each lease term absent written notice from the customer. The Company’s operating lease agreements do not contain any material residual value guarantees. For operating leases, rental income is generally recognized on a straight-line basis over the term of the associated lease, and recorded in services and other revenues in the Condensed Consolidated Statements of Operations. Leased assets under operating leases are carried at amortized cost net of accumulated depreciation in property and equipment, net on the Condensed Consolidated Balance Sheets. The depreciation expense of the leased assets is recognized on a straight-line basis over the contractual term of the associated lease, and recorded in cost of revenues in the Condensed Consolidated Statements of Operations. Lessee Leases The Company determines if an arrangement is a lease at inception. Operating lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As most of our lease contracts do not provide an implicit rate, the Company uses its incremental borrowing rate based on information available at the commencement date in determining the present value of the lease payments. Many of the Company’s operating leases include an option to extend the lease. The specific terms and conditions of the extension options vary from lease to lease, but are consistent with standard industry practices in each area that the Company operates. The Company reviews each of its lease options at a time required by the terms of the lease contract, and notifies the lessor if it chooses to exercise the lease renewal option. Until the Company is reasonably certain that it will extend the lease contract, the renewal option periods will not be recognized as right-of-use assets or lease liabilities. Certain leases include provisions for early termination, which allows the contract parties to terminate their obligations under the lease contract. The terms and conditions of the termination options vary by contract. When the Company has made a decision to exercise an early termination option, the right-of-use assets and associated lease liabilities are remeasured in accordance with the present value of the remaining cash flows under the lease contract. Certain building lease agreements include rental payments subject to change annually based on fluctuations in various indexes (i.e. Consumer Price Index (“CPI”), Retail Price Index, and other international indexes). Certain data center lease agreements include rental payments subject to change based on usage and CPI fluctuations. The changes based on usage and indexes are treated as variable lease costs and recognized in the period in which the obligation for those payments was incurred. The Company’s operating lease agreements do not contain any material residual value guarantees, restrictions, or restriction covenants. Recently Adopted Authoritative Guidance In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842). The FASB amended lease accounting requirements to begin recording assets and liabilities arising from most leases on the balance sheet. The new guidance also requires significant additional disclosures about the amount and timing of cash flows from leases. The Company adopted this new guidance on January 1, 2019. In July 2018, the FASB issued amendments in ASU 2018-11, which provide a transition election to not restate comparative periods for the effects of applying the new standard. This transition election permits entities to change the date of initial application to the beginning of the year of adoption and to recognize the effects of applying the new standard as a cumulative-effect adjustment to the opening balance of retained earnings. The Company has elected this transition approach as well as elected the package of practical expedients permitted under the transition guidance within the new standard, which will allow the Company to carry forward the historical lease classification of contracts entered into prior to January 1, 2019. As a result of electing the package of practical expedients described above, existing leases and related initial direct costs have not been reassessed prior to the effective date, and therefore, adoption of the lease standard did not have an impact on the Company’s previously reported consolidated statements. The Company also elected the following practical expedients: (i) combining lease and non-lease components, (ii) leases with an initial term of 12 months or less are not recorded in the Condensed Consolidated Balance Sheets, and the associated lease payments are recognized in the Condensed Consolidated Statements of Operations on a straight-line basis over the lease term, and (iii) applying discount rates to operating leases using a portfolio approach. From a lessor perspective, certain agreements that were previously classified as operating leases are classified as sales-type leases under the new lease accounting standard. The agreements in place prior to the adoption of the new lease accounting standard on January 1, 2019 will continue to be treated as operating leases. The Company’s adoption of the new standard impacted the Condensed Consolidated Balance Sheets at the beginning of the period of adoption as follows:
Adoption of the standard did not have an impact on the Company’s stockholders’ equity, Condensed Consolidated Statements of Operations, and Condensed Consolidated Statements of Cash Flows as of January 1, 2019. In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which permits the reclassification of the income tax effects of the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) on items within accumulated other comprehensive income to retained earnings. These amounts are commonly referred to as “stranded tax effects.” ASU 2018-02 is effective for the Company beginning January 1, 2019. The adoption of this guidance did not have a material effect on the Company’s consolidated financial statements and therefore no adjustment to retained earnings was made. Recently Issued Authoritative Guidance In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). ASU 2018-15 will be effective for the Company beginning January 1, 2020. The Company is currently evaluating the impact ASU 2018-15 will have on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments, that modifies or replaces existing models for trade and other receivables, debt securities, loans, and certain other financial instruments. For instruments measured at amortized cost, including trade and lease receivables, loans and held-to-maturity debt securities, the standard will replace the current “incurred loss” approach with an “expected loss” model. Entities will be required to estimate expected credit losses over the life of the instrument, considering available relevant information about the collectibility of cash flows, including information about past events, current conditions, and reasonable and supportable forecasts. ASU 2016-13 will be effective for the Company beginning January 1, 2020. The Company is currently evaluating the impact ASU 2016-13 will have on its consolidated financial statements. There was no other recently issued and effective authoritative guidance that is expected to have a material impact on the Company’s Condensed Consolidated Financial Statements through the reporting date.
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Revenues |
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Revenue Recognition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | Revenues Revenue Recognition The Company earns revenues from sales of its medication and supply dispensing automation systems, along with consumables and related services, which are sold in the healthcare industry, its principal market. The Company’s customer arrangements typically include one or more of the following performance obligations: Products. Software-enabled equipment that manages and regulates the storage and dispensing of pharmaceuticals, consumable blister cards and packaging equipment and other medical supplies. Software. Additional software applications that enable incremental functionality of the Company’s equipment or services. Installation. Installation of equipment as integrated systems at customer sites. Post-installation technical support. Phone support, on-site service, parts, and access to unspecified software updates and enhancements, if and when available. Professional services. Other customer services, such as training and consulting. A portion of the Company’s sales are made to customers who are members of Group Purchasing Organizations (“GPOs”). GPOs are often owned fully or in part by the Company’s customers, and the Company pays fees to the GPO on completed contracts. The Company considers these fees consideration paid to customers and records them as reductions to revenue. Fees to GPOs were $2.6 million and $2.1 million for the three months ended June 30, 2019 and 2018, respectively, and $4.8 million and $4.0 million for the six months ended June 30, 2019 and 2018, respectively. Disaggregation of Revenues The following table summarizes the Company’s product revenues disaggregated by revenue type for the three and six months ended June 30, 2019 and 2018:
The following table summarizes the Company’s revenues disaggregated by geographic region, which is determined based on customer location, for the three and six months ended June 30, 2019 and 2018:
Contract Assets and Contract Liabilities The following table reflects the Company’s contract assets and contract liabilities:
The portion of the transaction price allocated to the Company’s unsatisfied performance obligations for which invoicing has occurred is recorded as deferred revenues. Short-term deferred revenues of $83.0 million and $81.8 million include deferred revenues from product sales and service contracts, net of deferred cost of sales, of $12.0 million and $11.1 million as of June 30, 2019 and December 31, 2018, respectively. The short-term deferred revenues from product sales relate to delivered and invoiced products, pending installation and acceptance, expected to occur within the next twelve months. During the three and six months ended June 30, 2019, the Company recognized revenues of $25.7 million and $65.0 million that were included in the corresponding gross short-term deferred revenues balance of $92.9 million as of December 31, 2018. Long-term deferred revenues include deferred revenues from service contracts of $9.7 million and $10.6 million as of June 30, 2019 and December 31, 2018, respectively. Remaining performance obligations primarily relate to maintenance contracts and are recognized ratably over the remaining term of the contract, generally not more than five years. Significant Customers There were no customers that accounted for more than 10% of the Company’s total revenues for the three and six months ended June 30, 2019 and 2018. Also, there were no customers that accounted for more than 10% of the Company’s accounts receivable as of June 30, 2019 and December 31, 2018.
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Net Income Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income Per Share | Net Income Per Share Basic net income per share is computed by dividing net income for the period by the weighted-average number of shares outstanding during the period. In periods of net loss, all potential common shares are anti-dilutive, so diluted net loss per share equals the basic net loss per share. In periods of net income, diluted net income per share is computed by dividing net income for the period by the basic weighted-average number of shares plus any dilutive potential common stock outstanding during the period. Potential common stock includes the effect of outstanding dilutive stock options, restricted stock awards, and restricted stock units computed using the treasury stock method. Any anti-dilutive weighted-average dilutive shares related to stock award plans are excluded from the computation of the diluted net income per share. The basic and diluted net income per share calculations for the three and six months ended June 30, 2019 and 2018 were as follows:
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Cash and Cash Equivalents and Fair Value of Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents and Fair Value of Financial Instruments | Cash and Cash Equivalents and Fair Value of Financial Instruments Cash and cash equivalents of $87.5 million and $67.2 million as of June 30, 2019 and December 31, 2018, respectively, consisted of bank accounts with major financial institutions. Fair Value Hierarchy The Company measures its financial instruments at fair value. The Company’s cash equivalents are classified within Level 1 of the fair value hierarchy as they are valued primarily using quoted market prices utilizing market observable inputs. The Company’s interest rate swap contracts are classified within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments. The following table represents the fair value hierarchy of the Company’s financial assets and financial liabilities measured at fair value as of December 31, 2018:
The Company’s interest rate swap agreement matured during the second quarter of 2019. Interest Rate Swap Contracts The Company uses interest rate swap agreements to protect the Company against adverse fluctuations in interest rates by reducing its exposure to variability in cash flows relating to interest payments on a portion of its outstanding debt. The Company’s interest rate swaps, which are designated as cash flow hedges, involve the receipt of variable amounts from counterparties in exchange for the Company making fixed-rate payments over the life of the agreements. The Company does not hold or issue any derivative financial instruments for speculative trading purposes. During 2016, the Company entered into an interest rate swap agreement with a combined notional amount of $100.0 million with one counterparty that became effective on June 30, 2016 and matured on April 30, 2019. The swap agreement required the Company to pay a fixed rate of 0.8% and provided that the Company receive a variable rate based on the one month LIBOR rate subject to a LIBOR floor of 0.0%. Amounts payable by or due to the Company were net settled with the respective counterparty on the last business day of each month, commencing July 31, 2016. The fair value of the interest rate swap agreement at December 31, 2018 was $0.6 million. There were no amounts reclassified into current earnings due to ineffectiveness during the periods presented.
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Balance Sheet Components |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Components | Balance Sheet Components Balance sheet details as of June 30, 2019 and December 31, 2018 are presented in the tables below:
The following tables summarize the changes in accumulated balances of other comprehensive income (loss) for the three and six months ended June 30, 2019 and 2018:
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Property and Equipment - (Notes) |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment | Property and Equipment The following table represents the property and equipment balances as of June 30, 2019 and December 31, 2018:
Depreciation and amortization expense of property and equipment was $4.4 million and $3.8 million for the three months ended June 30, 2019 and 2018, respectively. Depreciation and amortization expense of property and equipment was $8.4 million and $7.3 million for the six months ended June 30, 2019 and 2018, respectively. The geographic location of the Company's property and equipment, net, is based on the physical location in which it is located. The following table summarizes the geographic information for property and equipment, net, as of June 30, 2019 and December 31, 2018:
_________________________________________________ (1) No individual country represented more than 10% of the respective totals.
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Goodwill and Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The following table represents changes in the carrying amount of goodwill:
Intangible Assets, Net The carrying amounts and useful lives of intangible assets as of June 30, 2019 and December 31, 2018 were as follows:
_________________________________________________
Amortization expense of intangible assets was $4.7 million and $6.0 million for the three months ended June 30, 2019 and 2018, respectively. Amortization expense of intangible assets was $9.5 million and $12.0 million for the six months ended June 30, 2019 and 2018, respectively. The estimated future amortization expenses for amortizable intangible assets were as follows:
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Debt and Credit Agreements |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt and Credit Agreements | Debt and Credit Agreements On January 5, 2016, the Company entered into a $400.0 million senior secured credit facility pursuant to a credit agreement with certain lenders, Wells Fargo Securities, LLC as sole lead arranger, and Wells Fargo Bank, National Association as administrative agent (the “Credit Agreement”). The Credit Agreement provides for (a) a five-year revolving credit facility of $200.0 million, which was subsequently increased pursuant to the amendment discussed below (the “Revolving Credit Facility”) and (b) a five-year $200.0 million term loan facility (the “Term Loan Facility” and together with the Revolving Credit Facility, the “Facilities”). In addition, the Credit Agreement includes a letter of credit sub-limit of up to $10.0 million and a swing line loan sub-limit of up to $10.0 million. The Credit Agreement expires on January 5, 2021, upon which date all remaining outstanding borrowings are due and payable. Loans under the Facilities bear interest, at the Company’s option, at a rate equal to either (a) the LIBOR Rate, plus an applicable margin ranging from 1.50% to 2.25% per annum based on the Company’s consolidated total net leverage ratio (as defined in the Credit Agreement), or (b) an alternate base rate equal to the highest of (i) the prime rate, (ii) the federal funds rate plus 0.50%, and (iii) LIBOR for an interest period of one month, plus an applicable margin ranging from 0.50% to 1.25% per annum based on the Company’s consolidated total net leverage ratio (as defined in the Credit Agreement). Undrawn commitments under the Revolving Credit Facility will be subject to a commitment fee ranging from 0.20% to 0.35% per annum based on the Company’s consolidated total net leverage ratio on the average daily unused portion of the Revolving Credit Facility. A letter of credit participation fee ranging from 1.50% to 2.25% per annum based on the Company’s consolidated total net leverage ratio will accrue on the average daily amount of letter of credit exposure. The Company is permitted to make voluntary prepayments at any time without payment of a premium or penalty, except for any amounts relating to the LIBOR breakage indemnity described in the Credit Agreement. The Company is required to make mandatory prepayments under the Term Loan Facility with (a) net cash proceeds from any issuances of debt (other than certain permitted debt) and (b) net cash proceeds from certain asset dispositions (other than certain permitted asset dispositions) and insurance and condemnation events (subject to reinvestment rights and certain other exceptions). Loans under the Term Loan Facility will amortize in quarterly installments, equal to 5% per annum of the original principal amount thereof during the first two years, which shall increase to 10% per annum during the third and fourth years, and 15% per annum during the fifth year, with the remaining balance payable on January 5, 2021. The Company is required to make mandatory prepayments under the Revolving Credit Facility if at any time the aggregate outstanding principal amount of loans together with the total amount of outstanding letters of credit exceeds the aggregate commitments, with such mandatory prepayment to be equal to the amount of such excess. The Credit Agreement contains customary representations and warranties, and customary affirmative and negative covenants applicable to the Company and its subsidiaries, including, among other things, restrictions on indebtedness, liens, investments, mergers, dispositions, dividends, and other distributions. The Credit Agreement contains financial covenants that require the Company and its subsidiaries to not exceed a maximum consolidated total leverage ratio and maintain a minimum fixed charge coverage ratio. The Company’s obligations under the Credit Agreement, and any swap obligations and banking services obligations owing to a lender (or an affiliate of a lender), are guaranteed by certain of its domestic subsidiaries and secured by substantially all of its and the subsidiary guarantors’ assets. In connection with entering into the Credit Agreement, and as a condition precedent to borrowing loans thereunder, the Company and certain of the Company’s other direct and indirect subsidiaries have entered into certain ancillary agreements, including, but not limited to, a collateral agreement and subsidiary guaranty agreement. On April 11, 2017, the parties entered into the First Amendment to Credit Agreement and Collateral Agreement (the “Amended Credit Agreement”). Under this amendment, (i) the maximum capital expenditures limit in any fiscal year for property, plant, and equipment and software development increased from $35.0 million to $45.0 million, and (ii) the maximum limit for non-permitted investments increased from $10.0 million to $20.0 million. On December 26, 2017, the parties entered into an amendment (the “Amendment”) to the Amended Credit Agreement. Pursuant to the Amendment, the Revolving Credit Facility provided for under the Amended Credit Agreement, was increased from $200.0 million to $315.0 million, and certain other modifications to the Amended Credit Agreement were made, including amendments to certain negative covenants. In connection with these Facilities, the Company incurred $10.1 million of debt issuance costs. The debt issuance costs were capitalized and presented as a direct deduction from the carrying amount of that debt liability. The debt issuance costs are being amortized to interest expense using the straight line method from issuance date through 2021. Interest expense (exclusive of fees and issuance cost amortization) was approximately $0.9 million and $1.9 million for the three months ended June 30, 2019 and 2018, respectively, and approximately $2.2 million and $3.8 million for the six months ended June 30, 2019 and 2018, respectively. Amortization expense related to fees and issuance cost was approximately $0.6 million and $0.6 million for the three months ended June 30, 2019 and 2018, respectively, and approximately $1.1 million and $1.1 million for the six months ended June 30, 2019 and 2018, respectively. The Company was in compliance with all covenants as of June 30, 2019 and December 31, 2018. During the six months ended June 30, 2019, the Company repaid $60.0 million under these Facilities. The components of the Company’s debt obligations as of June 30, 2019 and December 31, 2018 were as follows:
As of June 30, 2019, the carrying amount of debt of $80.0 million approximates the comparable fair value of $80.2 million. The Company’s debt facilities are classified as a Level 3 in the fair value hierarchy. The calculation of the fair value is based on a discounted cash flow model using observable market inputs and taking into consideration variables such as interest rate changes, comparable instruments and long-term credit ratings. There have been no significant changes in the assumptions used as of June 30, 2019 as compared to December 31, 2018.
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Lessor Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lessor Leases | Lessor Leases Sales-Type Leases On a recurring basis, the Company enters into multi-year, sales-type lease agreements, with the majority varying in length from one to five years. The following table presents the Company’s income recognized from sales-type leases for the three and six months ended June 30, 2019 and 2018:
The receivables as a result of these types of transactions are collateralized by the underlying equipment leased and consist of the following components at June 30, 2019 and December 31, 2018:
_________________________________________________
The carrying amount of the Company’s sales-type lease receivables is a reasonable estimate of fair value. The Company evaluates its sales-type leases individually and collectively for impairment. The allowance for credit losses was $0.2 million as of both June 30, 2019 and December 31, 2018. The maturity schedule of future minimum lease payments under sales-type leases retained in-house and the reconciliation to the net investment in sales-type leases reported on the Condensed Consolidated Balance Sheets was as follows:
Operating Leases The Company entered into certain leasing agreements that were classified as operating leases prior to the adoption of the new lease accounting standard. These agreements in place prior to January 1, 2019 will continue to be treated as operating leases, however any new leasing agreements entered into on or after January 1, 2019 under these programs are classified and accounted for as sales-type leases in accordance with the new lease accounting standard. The operating lease arrangements generally have initial terms of one to seven years. The following table represents the Company’s income recognized from operating leases for the three and six months ended June 30, 2019 and 2018:
The net carrying value of the leased equipment under operating leases was $2.4 million and $2.6 million, which includes accumulated depreciation of $1.3 million and $1.2 million, as of June 30, 2019 and December 31, 2018, respectively. Depreciation expense of the leased equipment for the three months ended June 30, 2019 and 2018 was $0.3 million and $0.1 million, respectively, and depreciation expense of the leased equipment for the six months ended June 30, 2019 and 2018 was $0.4 million and $0.2 million, respectively. The maturity schedule of future minimum lease payments under operating leases was as follows:
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Lessor Leases | Lessor Leases Sales-Type Leases On a recurring basis, the Company enters into multi-year, sales-type lease agreements, with the majority varying in length from one to five years. The following table presents the Company’s income recognized from sales-type leases for the three and six months ended June 30, 2019 and 2018:
The receivables as a result of these types of transactions are collateralized by the underlying equipment leased and consist of the following components at June 30, 2019 and December 31, 2018:
_________________________________________________
The carrying amount of the Company’s sales-type lease receivables is a reasonable estimate of fair value. The Company evaluates its sales-type leases individually and collectively for impairment. The allowance for credit losses was $0.2 million as of both June 30, 2019 and December 31, 2018. The maturity schedule of future minimum lease payments under sales-type leases retained in-house and the reconciliation to the net investment in sales-type leases reported on the Condensed Consolidated Balance Sheets was as follows:
Operating Leases The Company entered into certain leasing agreements that were classified as operating leases prior to the adoption of the new lease accounting standard. These agreements in place prior to January 1, 2019 will continue to be treated as operating leases, however any new leasing agreements entered into on or after January 1, 2019 under these programs are classified and accounted for as sales-type leases in accordance with the new lease accounting standard. The operating lease arrangements generally have initial terms of one to seven years. The following table represents the Company’s income recognized from operating leases for the three and six months ended June 30, 2019 and 2018:
The net carrying value of the leased equipment under operating leases was $2.4 million and $2.6 million, which includes accumulated depreciation of $1.3 million and $1.2 million, as of June 30, 2019 and December 31, 2018, respectively. Depreciation expense of the leased equipment for the three months ended June 30, 2019 and 2018 was $0.3 million and $0.1 million, respectively, and depreciation expense of the leased equipment for the six months ended June 30, 2019 and 2018 was $0.4 million and $0.2 million, respectively. The maturity schedule of future minimum lease payments under operating leases was as follows:
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Lessee Leases - (Notes) |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lessee Leases | Lessee Leases The Company has operating leases for office buildings, data centers, office equipment, and vehicles. The Company’s leases have initial terms of one to 12 years. As of June 30, 2019, the Company did not have any additional material operating leases that were entered into, but not yet commenced. The maturity schedule of future minimum lease payments under operating leases and the reconciliation to the operating lease liabilities reported on the Condensed Consolidated Balance Sheets was as follows:
Prior to the adoption of the new lease accounting standard, the maturity schedule of future minimum lease payments under operating leases was as follows:
Operating lease costs were $3.6 million and $7.3 million for the three and six months ended June 30, 2019, respectively. Short-term lease costs and variable lease costs were immaterial for the three and six months ended June 30, 2019. The following table summarizes supplemental cash flow information related to the Company’s operating leases for the six months ended June 30, 2019:
The following table summarizes the weighted-average remaining lease term and weighted-average discount rate related to the Company’s operating leases as of June 30, 2019:
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Obligations In the ordinary course of business, the Company issues purchase orders based on its current manufacturing needs. As of June 30, 2019, the Company had non-cancelable purchase commitments of $61.3 million, of which $53.9 million are expected to be paid within the year ended December 31, 2019. Legal Proceedings The Company is currently involved in various legal proceedings. As required under ASC 450, Contingencies, the Company accrues for contingencies when it believes that a loss is probable and that it can reasonably estimate the amount of any such loss. The Company has not recorded any accrual for contingent liabilities associated with the legal proceedings described below based on its belief that any potential loss, while reasonably possible, is not probable. Further, any possible range of loss in these matters cannot be reasonably estimated at this time. The Company believes that it has valid defenses with respect to legal proceedings pending against it. However, litigation is inherently unpredictable, and it is possible that cash flows or results of operations could be materially affected in any particular period by the unfavorable resolution of this contingency or because of the diversion of management’s attention and the creation of significant expenses. On January 10, 2018, a lawsuit was filed against a number of individuals, governmental agencies, and corporate entities, including the Company and one of its subsidiaries, Aesynt Incorporated (“Aesynt”), in the Circuit Court for the City of Richmond, Virginia, captioned Ruth Ann Warner, as Guardian of Jonathan James Brewster Warner v. Centra Health, Inc., et al., Case No. CL18-152-1. The complaint seeks monetary recovery of compensatory and punitive damages in addition to certain declaratory relief based upon, as against the individuals, governmental agencies, and corporate entities other than the Company and Aesynt, allegations of the use of excessive force, unlawful detention, false imprisonment, battery, simple and gross negligence and negligent hiring, detention, and training; and, as against the Company and Aesynt, claims of product liability, negligence, and breach of implied warranties. The Company and Aesynt were never served with the complaint. Upon motion of the plaintiff, the Court issued an order on February 21, 2019 nonsuiting (dismissing) the case without prejudice. On June 6, 2018, a class action lawsuit was filed against a customer of the Company, the customer’s parent company and two vendors of medication dispensing systems, one of which is the Company, in the Circuit Court of Cook County, Illinois, Chancery Division, captioned Yana Mazya, individually and on behalf of all others similarly situated v. Northwestern Lake Forest Hospital, Northwestern Memorial Healthcare, Omnicell, Inc. and Becton Dickinson, Case No. 2018-CH-07161. The complaint sought class certification, monetary damages in the form of statutory damages for willful and/or reckless or, in the alternative, negligent violation of the Illinois Biometric Information Privacy Act (“BIPA”), and certain declaratory, injunctive, and other relief based on causes of action directed to allegations of violation of BIPA and of negligence by the defendants. The complaint was served on the Company on June 15, 2018. The Company’s obligation to respond to the complaint was held in abeyance pending a decision of the Illinois Supreme Court in a separate case involving BIPA issues. The Illinois Supreme Court issued its decision in that case on January 25, 2019. On April 10, 2019, subsequent to the court’s issuance of an order granting the plaintiff leave to file an amended complaint, the plaintiff filed an amended complaint adding a second named plaintiff and an affiliate of the Company’s customer as an additional defendant and, in addition to making other modifications to the complaint, removing the separate cause of action directed to negligence. The court established a deadline of May 13, 2019 for the defendants to answer or otherwise respond to the amended complaint. On May 10, 2019, defendants Northwestern Lake Forest Hospital, Northwestern Memorial Healthcare, and Northwestern Memorial Hospital removed the case to the United States District Court for the Northern District of Illinois, Eastern Division. Subsequently, on May 17, 2019, the Company and the other defendants in the case each filed a motion to dismiss the complaint for failure to state a cause of action upon which relief could be granted. On June 14, 2019, plaintiffs filed a motion to remand the case to state court. The Court then entered an order, on June 19, 2019, denying plaintiffs’ motion to remand, granting defendants’ motions to dismiss with respect to the additionally-named plaintiff, and continuing the motions to dismiss with respect to the originally-named plaintiff. On July 2, 2019, the Court entered an order remanding the case to state court and denying the defendants’ motions to dismiss without prejudice to renewal of the motions in state court. The Company intends to defend the lawsuit vigorously. A declaratory judgment action was filed against the Company, on August 30, 2018, in the United States District Court for the Northern District of California, captioned Zurich American Insurance Company; American Guarantee & Liability Company v. Omnicell, Inc. and Does 1-10, inclusive, Case No. 3:18-CV-05345. The complaint seeks a declaration that the plaintiffs have no duty to defend or indemnify the Company in connection with the underlying litigation, the Yana Mazya, et al. v. Northwestern Lake Forest Hospital, et al., Case No. 2018-CH-07161 pending in the Circuit Court of Cook County, Illinois, Chancery Division (“Underlying Action”), disclosed above, together with claims for reimbursement and unjust enrichment relating to the defense of the Underlying Action in the form of attorneys’ fees and other related costs. The Company has not responded to the complaint. On February 12, 2019, the court stayed the action pending the outcome of the Underlying Action and administratively closed the case. The Company intends to defend the lawsuit vigorously. A class action lawsuit was filed against the Company, on June 5, 2019, in the Circuit Court of Cook County, Illinois, Chancery Division, captioned Corey Heard, individually and on behalf of all others similarly situated, v. Omnicell, Inc., Case No. 2019-CH-06817. The complaint seeks class certification, monetary damages in the form of statutory damages for willful and/or reckless or, in the alternative, negligent violation of BIPA, and certain declaratory, injunctive, and other relief based on causes of action directed to allegations of violation of BIPA by the Company. The complaint was served on the Company on June 13, 2019. The Company must file a response to the complaint by August 14, 2019. The Court has scheduled a case management conference for October 3, 2019. The Company intends to defend the lawsuit vigorously. On July 18, 2019, a putative class action lawsuit was filed against the Company and certain of its officers in the U.S. District Court for the Northern District of California. The complaint, captioned Bursick v. Omnicell, Inc. et al., Case No. 3:19-cv-04150, alleges that the defendants violated federal securities laws by making materially false and misleading statements beginning in October 2018 regarding revenue recognition, customer concerns about implementation issues, and a purported need to write off inventory. The plaintiff seeks unspecified monetary damages and other relief. The Company intends to defend the lawsuit vigorously.
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Income Taxes |
6 Months Ended |
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Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company generally provides for income taxes in interim periods based on the estimated annual effective tax rate for the year, adjusting for discrete items in the quarter in which they arise. The annual effective tax rate before discrete items was 24.8% and 16.5% for the six months ended June 30, 2019 and 2018, respectively. As a result of global operational centralization activities during the six months ended June 30, 2018, the Company recognized $4.2 million of a discrete tax benefit associated with making a check-the-box election to treat Aesynt Holding Coöperatief U.A. (Netherlands) as a U.S. disregarded entity beginning in the first quarter of 2018. Due to continuing global operational centralization activities during the first quarter of 2019, the Company recognized gain on the sale of certain intellectual property rights by Aesynt Holding Coöperatief U.A. to Omnicell, Inc., which resulted in a discrete tax expense in the amount of $9.6 million during the six months ended June 30, 2019. The Company also recognized a discrete tax benefit related to equity compensation in the amount of $7.0 million and $2.6 million for the six months ended June 30, 2019 and June 30, 2018, respectively. The 2019 annual effective tax rate differed from the statutory rate of 21% primarily due to the unfavorable impact of the state income taxes, non-deductible equity charges, and non-deductible expenses, partially offset by the favorable impact of the research and development credits, foreign rate differential, and foreign derived intangible income (“FDII”) benefit deduction. The 2018 annual effective tax rate differed from the statutory rate of 21% primarily due to the favorable impact of the research and development credits and foreign rate differential, which were partially offset by the unfavorable impact of state income taxes, non-deductible expenses, and non-deductible equity charges. As of June 30, 2019 and December 31, 2018, the Company had gross unrecognized tax benefits of $14.2 million and $10.0 million, respectively. It is the Company’s policy to classify accrued interest and penalties as part of the unrecognized tax benefits, but to record interest and penalties in Interest and other income (expense), net in the Condensed Consolidated Statements of Operations. As of June 30, 2019 and December 31, 2018, the amount of accrued interest and penalties was $1.6 million and $1.4 million, respectively. The Company files income tax returns in the United States and various states and foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities, including major jurisdictions such as the United States, Germany, Italy, Netherlands, and the United Kingdom. With few exceptions, as of June 30, 2019, the Company is no longer subject to U.S., state, and foreign examination for years before 2015, 2014, and 2014, respectively. Although the Company believes it has adequately provided for uncertain tax positions, the provisions on these positions may change as revised estimates are made or the underlying matters are settled or otherwise resolved. It is not possible at this time to reasonably estimate changes in the unrecognized tax benefits within the next twelve months.
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Employee Benefits and Share-Based Compensation |
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefits and Share-Based Compensation | Employee Benefits and Share-Based Compensation Stock-Based Plans For a detailed explanation of the Company's stock plans, please refer to Note 11, Employee Benefits and Share-Based Compensation, of the Company's annual report on Form 10-K for the year ended December 31, 2018 filed with the SEC on February 27, 2019. Share-Based Compensation Expense The following table sets forth the total share-based compensation expense recognized in the Company’s Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2019 and 2018:
In the first quarter of 2019, the Company modified the terms of its stock options by extending the post-employment exercise period for certain employees. The Company recorded share-based compensation expense related to this option modification of approximately $0.1 million and $0.3 million during the three and six months ended June 30, 2019. The Company will incur an additional $0.7 million of share-based compensation expense for the impacted options over the remaining weighted-average vesting period of 1.9 years. Stock Options and ESPP Shares The following assumptions were used to value stock options and Employee Stock Purchase Plan (“ESPP”) shares granted pursuant to the Company’s equity incentive plans for the three and six months ended June 30, 2019 and 2018:
Stock Options Activity The following table summarizes the share option activity under the Company’s equity incentive plans during the six months ended June 30, 2019:
The weighted-average fair value per share of options granted during the three months ended June 30, 2019 and 2018 was $24.40 and $14.43, respectively, and the weighted-average fair value per share of options granted during the six months ended June 30, 2019 and 2018 was $24.20 and $14.29, respectively. The intrinsic value of options exercised during the three months ended June 30, 2019 and 2018 was $7.2 million and $6.5 million, respectively, and the intrinsic value of options exercised during the six months ended June 30, 2019 and 2018 was $24.3 million and $8.5 million, respectively. As of June 30, 2019, total unrecognized compensation cost related to unvested stock options was $33.2 million, which is expected to be recognized over a weighted-average vesting period of 2.8 years. Employee Stock Purchase Plan Activity For the six months ended June 30, 2019 and 2018, employees purchased approximately 210,000 and 289,000 shares of common stock, respectively, under the ESPP at weighted average prices of $40.20 and $26.30, respectively. As of June 30, 2019, the unrecognized compensation cost related to the shares to be purchased under the ESPP was approximately $2.6 million and is expected to be recognized over a weighted-average period of 1.3 years. Restricted Stock Units (“RSUs”) and Restricted Stock Awards (“RSAs”) Summaries of the restricted stock activity under the Company’s 2009 Equity Incentive Plan, as amended (the “2009 Plan”) are presented below for the six months ended June 30, 2019:
As of June 30, 2019, total unrecognized compensation cost related to RSUs was $23.0 million, which is expected to be recognized over the remaining weighted-average vesting period of 2.7 years.
As of June 30, 2019, total unrecognized compensation cost related to RSAs was $1.1 million, which is expected to be recognized over the remaining weighted-average vesting period of 0.9 years. Performance-Based Restricted Stock Units A summary of the performance-based restricted stock activity under the 2009 Plan is presented below for the six months ended June 30, 2019:
As of June 30, 2019, total unrecognized compensation cost related to PSUs was approximately $4.9 million, which is expected to be recognized over the remaining weighted-average vesting period of 1.5 years. Summary of Shares Reserved for Future Issuance under Equity Incentive Plans The Company had the following ordinary shares reserved for future issuance under its equity incentive plans as of June 30, 2019:
Stock Repurchase Program On August 2, 2016, the Company's Board of Directors (the “Board”) authorized a stock repurchase program providing for the repurchase of up to $50.0 million of the Company’s common stock (the “2016 Repurchase Program”). The 2016 Repurchase Program is in addition to the stock repurchase program approved by the Board on November 4, 2014 (the “2014 Repurchase Program”). As of June 30, 2019, the maximum dollar value of shares that may yet be purchased under the two repurchase programs was $54.9 million. The stock repurchase programs do not obligate the Company to repurchase any specific number of shares, and the Company may terminate or suspend the repurchase programs at any time. During the three and six months ended June 30, 2019 and 2018, the Company did not repurchase any of its outstanding common stock.
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Equity Offerings |
6 Months Ended |
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Jun. 30, 2019 | |
Equity [Abstract] | |
Equity Offerings | Equity Offerings On November 3, 2017, the Company entered into a Distribution Agreement (the “Distribution Agreement”) with J.P. Morgan Securities LLC, Wells Fargo Securities, LLC, and HSBC Securities (USA) Inc., as its sales agents, pursuant to which the Company may offer and sell from time to time through the sales agents up to $125.0 million maximum aggregate offering price of the Company’s common stock. Sales of the common stock pursuant to the Distribution Agreement may be made in negotiated transactions or transactions that are deemed to be “at the market” offerings as defined in Rule 415 under the Securities Act of 1933, including sales made directly on the Nasdaq Stock Market, or sales made to or through a market maker other than on an exchange. For the three months ended June 30, 2019, the Company received gross proceeds of $17.9 million from sales of its common stock under the Distribution Agreement and incurred issuance costs of $0.3 million on sales of approximately 217,000 shares of its common stock at an average price of approximately $82.51 per share. For the six months ended June 30, 2019, the Company received gross proceeds of $38.5 million from sales of its common stock under the Distribution Agreement and incurred issuance costs of $0.7 million on sales of approximately 460,000 shares of its common stock at an average price of approximately $83.81 per share. For the three and six months ended June 30, 2018, the Company did not sell any of its common stock under the Distribution Agreement. As of June 30, 2019, the Company had an aggregate of $31.5 million available to be offered under the Distribution Agreement.
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Restructuring Expenses |
6 Months Ended |
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Jun. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Expenses | Restructuring Expenses In the fourth quarter of 2018, the Company announced a company-wide organizational realignment initiative in order to align its organizational infrastructure for future expected growth. During the year ended December 31, 2018, the Company incurred and accrued for $1.3 million of restructuring expenses, which includes severance and consulting-related expenses. As of June 30, 2019, there was no unpaid balance related to this restructuring plan. On March 2, 2018, the Company initiated the realignment of its Automation and Analytics commercial group in North America and France. During the six months ended June 30, 2018, the Company accrued $3.0 million of employee severance cost and related expenses, and paid out $1.9 million. As of December 31, 2018, there was no unpaid balance related to this restructuring program.
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Organization and Summary of Significant Accounting Policies - (Policies) |
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Basis of Presentation | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements reflect, in the opinion of management, all adjustments, consisting of normal recurring adjustments and accruals, necessary to present fairly the financial position of the Company as of June 30, 2019 and December 31, 2018, the results of operations and comprehensive income for the three and six months ended June 30, 2019 and 2018, and cash flows for the six months ended June 30, 2019 and 2018. Certain information and footnote disclosures normally included in financial statements prepared in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”) have been condensed or omitted in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and accompanying Notes included in the Company’s annual report on Form 10-K for the year ended December 31, 2018 filed with the SEC on February 27, 2019, except as discussed in the sections entitled “Lessor Leases”, “Lessee Leases”, and “Recently Adopted Authoritative Guidance” below. The Company’s results of operations and comprehensive income for the three and six months ended June 30, 2019 and cash flows for the six months ended June 30, 2019 are not necessarily indicative of results that may be expected for the year ending December 31, 2019, or for any future period.
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Principles of Consolidation | Principles of Consolidation The Condensed Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
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Segment Reporting | Segment Reporting The Company's Chief Operating Decision Maker ("CODM") is its Chief Executive Officer. The CODM allocates resources and evaluates the performance of the Company using information about its revenues, gross profit, income from operations, and other key financial data. The Company previously operated and reported its business in two segments: Automation and Analytics, and Medication Adherence. In the fourth quarter of 2018, the Company introduced its vision of the Autonomous Pharmacy, a more fully automated and digitized system of medication management, in order to address changes in the healthcare industry as the Company executes on its plan to deliver end-to-end solutions with greater emphasis on automating manual processes for its customers. These industry changes include the continuing consolidation of healthcare systems, rising pharmaceutical costs, and increased scrutiny on controlled substances. In an effort to deliver on its strategic vision, the Company initiated a company-wide organizational realignment in the fourth quarter of 2018 to centrally manage its business operations, including the development and marketing of all of the Company’s products, sales and distribution, supply chain and inventory management, as well as regulatory and quality functions. As a result of this organizational realignment, all significant operating decisions are based upon an analysis of the Company as one operating segment. Therefore, effective January 1, 2019, the Company started reporting as only one operating segment, which is the same as the reporting segment. Accordingly, prior period information has been revised to conform with current period presentation.
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Use of Estimates | Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Company’s Condensed Consolidated Financial Statements and accompanying Notes. Management bases its estimates on historical experience and various other assumptions believed to be reasonable. Although these estimates are based on management’s best knowledge of current events and actions that may impact the Company in the future, actual results may be different from the estimates. The Company’s critical accounting policies are those that affect its financial statements materially and involve difficult, subjective or complex judgments by management. Those policies are revenue recognition; accounts receivable and notes receivable from investment in sales-type leases; operating lease right-of-use assets and liabilities; inventory valuation; capitalized software development costs; impairment of goodwill; purchased intangibles and long-lived assets; share-based compensation; and accounting for income taxes.
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Lessor | Lessor Leases The Company determines if an arrangement is a lease at inception. The transaction price is allocated to separate performance obligations, generally consisting of hardware and software products, installation, and post-installation technical support, proportionally based on the standalone selling price of each performance obligation. Standalone selling price is best evidenced by the price the Company charges for the good or service when selling it separately in similar circumstances to similar customers. Other than for the renewal of annual support services contracts, the Company’s products and services are not generally sold separately. The Company uses an amount discounted from the list price as a best estimated selling price. Sales-Type Leases The Company enters into non-cancelable sales-type lease arrangements, most of which do not have an option to extend the lease term. At the end of the lease term, the customer must either return the equipment or negotiate a new agreement, resulting in a new purchase or lease transaction. Failure of the customer to either return the equipment or negotiate a new agreement results in the contract becoming a month-to-month rental. Certain sales-type leases automatically renew for successive one year periods at the end of each lease term with written notice from the customer. The Company’s sales-type lease agreements do not contain any material residual value guarantees. For sales-type leases, the Company recognizes revenues for its hardware and software products, net of lease execution costs, post-installation product maintenance, and technical support, at the net present value of the lease payment stream upon customer acceptance. The Company recognizes service revenues associated with the sales-type leases ratably over the term of the agreement in service revenues on the Condensed Consolidated Statements of Operations. The Company recognizes interest income from sales-type leases using the effective interest method. Both hardware and software revenues, and interest income from sales-types leases are recorded in product revenues on the Condensed Consolidated Statements of Operations. The Company optimizes cash flows by selling a majority of its non-U.S. government sales-type leases to third-party leasing finance companies on a non-recourse basis. The Company has no obligation to the leasing company once the lease has been sold. Some of the Company's sales-type leases, mostly those relating to U.S. government hospitals which comprise approximately 50% of the lease receivable balance, are retained in-house. Operating Leases The Company entered into certain leasing agreements that were classified as operating leases prior to the adoption of the new lease accounting standard. Those agreements in place prior to January 1, 2019 will continue to be treated as operating leases, however any new leasing agreements entered into on or after January 1, 2019 under these programs are classified and accounted for as sales-type leases in accordance with the new lease accounting standard. The operating lease arrangements entered into prior to January 1, 2019 are non-cancelable, and most automatically renew for successive one year periods at the end of each lease term absent written notice from the customer. The Company’s operating lease agreements do not contain any material residual value guarantees. For operating leases, rental income is generally recognized on a straight-line basis over the term of the associated lease, and recorded in services and other revenues in the Condensed Consolidated Statements of Operations. Leased assets under operating leases are carried at amortized cost net of accumulated depreciation in property and equipment, net on the Condensed Consolidated Balance Sheets. The depreciation expense of the leased assets is recognized on a straight-line basis over the contractual term of the associated lease, and recorded in cost of revenues in the Condensed Consolidated Statements of Operations.
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Lessee | Lessee Leases The Company determines if an arrangement is a lease at inception. Operating lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As most of our lease contracts do not provide an implicit rate, the Company uses its incremental borrowing rate based on information available at the commencement date in determining the present value of the lease payments. Many of the Company’s operating leases include an option to extend the lease. The specific terms and conditions of the extension options vary from lease to lease, but are consistent with standard industry practices in each area that the Company operates. The Company reviews each of its lease options at a time required by the terms of the lease contract, and notifies the lessor if it chooses to exercise the lease renewal option. Until the Company is reasonably certain that it will extend the lease contract, the renewal option periods will not be recognized as right-of-use assets or lease liabilities. Certain leases include provisions for early termination, which allows the contract parties to terminate their obligations under the lease contract. The terms and conditions of the termination options vary by contract. When the Company has made a decision to exercise an early termination option, the right-of-use assets and associated lease liabilities are remeasured in accordance with the present value of the remaining cash flows under the lease contract. Certain building lease agreements include rental payments subject to change annually based on fluctuations in various indexes (i.e. Consumer Price Index (“CPI”), Retail Price Index, and other international indexes). Certain data center lease agreements include rental payments subject to change based on usage and CPI fluctuations. The changes based on usage and indexes are treated as variable lease costs and recognized in the period in which the obligation for those payments was incurred. The Company’s operating lease agreements do not contain any material residual value guarantees, restrictions, or restriction covenants.
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Recently Adopted and Issued Authoritative Guidance | Recently Adopted Authoritative Guidance In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842). The FASB amended lease accounting requirements to begin recording assets and liabilities arising from most leases on the balance sheet. The new guidance also requires significant additional disclosures about the amount and timing of cash flows from leases. The Company adopted this new guidance on January 1, 2019. In July 2018, the FASB issued amendments in ASU 2018-11, which provide a transition election to not restate comparative periods for the effects of applying the new standard. This transition election permits entities to change the date of initial application to the beginning of the year of adoption and to recognize the effects of applying the new standard as a cumulative-effect adjustment to the opening balance of retained earnings. The Company has elected this transition approach as well as elected the package of practical expedients permitted under the transition guidance within the new standard, which will allow the Company to carry forward the historical lease classification of contracts entered into prior to January 1, 2019. As a result of electing the package of practical expedients described above, existing leases and related initial direct costs have not been reassessed prior to the effective date, and therefore, adoption of the lease standard did not have an impact on the Company’s previously reported consolidated statements. The Company also elected the following practical expedients: (i) combining lease and non-lease components, (ii) leases with an initial term of 12 months or less are not recorded in the Condensed Consolidated Balance Sheets, and the associated lease payments are recognized in the Condensed Consolidated Statements of Operations on a straight-line basis over the lease term, and (iii) applying discount rates to operating leases using a portfolio approach. From a lessor perspective, certain agreements that were previously classified as operating leases are classified as sales-type leases under the new lease accounting standard. The agreements in place prior to the adoption of the new lease accounting standard on January 1, 2019 will continue to be treated as operating leases. The Company’s adoption of the new standard impacted the Condensed Consolidated Balance Sheets at the beginning of the period of adoption as follows:
Adoption of the standard did not have an impact on the Company’s stockholders’ equity, Condensed Consolidated Statements of Operations, and Condensed Consolidated Statements of Cash Flows as of January 1, 2019. In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which permits the reclassification of the income tax effects of the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) on items within accumulated other comprehensive income to retained earnings. These amounts are commonly referred to as “stranded tax effects.” ASU 2018-02 is effective for the Company beginning January 1, 2019. The adoption of this guidance did not have a material effect on the Company’s consolidated financial statements and therefore no adjustment to retained earnings was made. Recently Issued Authoritative Guidance In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). ASU 2018-15 will be effective for the Company beginning January 1, 2020. The Company is currently evaluating the impact ASU 2018-15 will have on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments, that modifies or replaces existing models for trade and other receivables, debt securities, loans, and certain other financial instruments. For instruments measured at amortized cost, including trade and lease receivables, loans and held-to-maturity debt securities, the standard will replace the current “incurred loss” approach with an “expected loss” model. Entities will be required to estimate expected credit losses over the life of the instrument, considering available relevant information about the collectibility of cash flows, including information about past events, current conditions, and reasonable and supportable forecasts. ASU 2016-13 will be effective for the Company beginning January 1, 2020. The Company is currently evaluating the impact ASU 2016-13 will have on its consolidated financial statements. There was no other recently issued and effective authoritative guidance that is expected to have a material impact on the Company’s Condensed Consolidated Financial Statements through the reporting date.
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Organization and Summary of Significant Accounting Policies - (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The Company’s adoption of the new standard impacted the Condensed Consolidated Balance Sheets at the beginning of the period of adoption as follows:
(2) Adjustment represents the reclassification of deferred rent to reduce the operating lease right-of-use assets.
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Revenues - (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product revenue by type | The following table summarizes the Company’s product revenues disaggregated by revenue type for the three and six months ended June 30, 2019 and 2018:
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Revenues by Geographical Location | The following table summarizes the Company’s revenues disaggregated by geographic region, which is determined based on customer location, for the three and six months ended June 30, 2019 and 2018:
(1) No individual country represented more than 10% of the respective totals.
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Contract Asset and Liabilities | The following table reflects the Company’s contract assets and contract liabilities:
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Net Income Per Share - (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic and Diluted Net Income Per Share | The basic and diluted net income per share calculations for the three and six months ended June 30, 2019 and 2018 were as follows:
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Cash and Cash Equivalents and Fair Value of Financial Instruments - (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Financial Assets Measured At Fair Value | The following table represents the fair value hierarchy of the Company’s financial assets and financial liabilities measured at fair value as of December 31, 2018:
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Balance Sheet Components - (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Components | Balance sheet details as of June 30, 2019 and December 31, 2018 are presented in the tables below:
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Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables summarize the changes in accumulated balances of other comprehensive income (loss) for the three and six months ended June 30, 2019 and 2018:
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Property and Equipment - (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment | The following table represents the property and equipment balances as of June 30, 2019 and December 31, 2018:
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Long-Lived Assets by Geographic Areas | The following table summarizes the geographic information for property and equipment, net, as of June 30, 2019 and December 31, 2018:
_________________________________________________ (1) No individual country represented more than 10% of the respective totals.
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Goodwill and Intangible Assets - (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | The following table represents changes in the carrying amount of goodwill:
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Finite-Lived Intangible Assets | The carrying amounts and useful lives of intangible assets as of June 30, 2019 and December 31, 2018 were as follows:
_________________________________________________ (1) The differences in gross carrying amounts between periods are primarily due to the write-off of fully amortized intangible assets.
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Future Amortization Expense for Intangible Assets | The estimated future amortization expenses for amortizable intangible assets were as follows:
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Debt and Credit Agreements - (Tables) |
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | The components of the Company’s debt obligations as of June 30, 2019 and December 31, 2018 were as follows:
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Lessor Leases - (Tables) |
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales-type Lease Income | The following table presents the Company’s income recognized from sales-type leases for the three and six months ended June 30, 2019 and 2018:
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Sales-Type Lease Receivable Components | The receivables as a result of these types of transactions are collateralized by the underlying equipment leased and consist of the following components at June 30, 2019 and December 31, 2018:
_________________________________________________ (1) The current portion of the net investment in sales-type leases is included in other current assets in the Condensed Consolidated Balance Sheets.
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Minimum Future Payments from Non-Cancelable Sales-Type Leases | The maturity schedule of future minimum lease payments under sales-type leases retained in-house and the reconciliation to the net investment in sales-type leases reported on the Condensed Consolidated Balance Sheets was as follows:
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Operating Lease Income | The following table represents the Company’s income recognized from operating leases for the three and six months ended June 30, 2019 and 2018:
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Payments to be Received | The maturity schedule of future minimum lease payments under operating leases was as follows:
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Lessee Leases - (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum Future Payments on Non-Cancelable Operating Leases | The maturity schedule of future minimum lease payments under operating leases and the reconciliation to the operating lease liabilities reported on the Condensed Consolidated Balance Sheets was as follows:
(1) Amount consists of a current and long-term portion of operating lease liabilities of $10.3 million and $55.2 million, respectively. The short-term portion of the operating lease liabilities is included in accrued liabilities in the Condensed Consolidated Balance Sheets.
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Minimum Future Payments on Non-Cancelable Operating Leases Prior To ASC 842 Adoption | Prior to the adoption of the new lease accounting standard, the maturity schedule of future minimum lease payments under operating leases was as follows:
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Lease Costs | The following table summarizes supplemental cash flow information related to the Company’s operating leases for the six months ended June 30, 2019:
The following table summarizes the weighted-average remaining lease term and weighted-average discount rate related to the Company’s operating leases as of June 30, 2019:
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Employee Benefits and Share-Based Compensation - (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation Expense Recognized in Consolidated Statements of Income | The following table sets forth the total share-based compensation expense recognized in the Company’s Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2019 and 2018:
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Stock Option Plans, Valuation Assumptions | The following assumptions were used to value stock options and Employee Stock Purchase Plan (“ESPP”) shares granted pursuant to the Company’s equity incentive plans for the three and six months ended June 30, 2019 and 2018:
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Employee Stock Purchase Plan, Valuation Assumptions |
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Stock Option Activity under the Equity Incentive Plans | The following table summarizes the share option activity under the Company’s equity incentive plans during the six months ended June 30, 2019:
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Restricted Stock Units Activity under the Equity Incentive Plans | Summaries of the restricted stock activity under the Company’s 2009 Equity Incentive Plan, as amended (the “2009 Plan”) are presented below for the six months ended June 30, 2019:
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Restricted Stock Awards Activity under the Equity Incentive Plans |
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Performance-Based Restricted Stock under the Equity Incentive Plans | A summary of the performance-based restricted stock activity under the 2009 Plan is presented below for the six months ended June 30, 2019:
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Shares Reserved for Future Issuance under the Equity Incentive Plans | The Company had the following ordinary shares reserved for future issuance under its equity incentive plans as of June 30, 2019:
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Organization and Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2019
USD ($)
|
Dec. 31, 2018
segment
|
Jun. 30, 2018
USD ($)
|
Jun. 30, 2019
USD ($)
segment
|
Jun. 30, 2018
USD ($)
|
|
Accounting Principle [Line Items] | |||||
Number of Reportable Segments | 2 | 1 | |||
Number of Operating Segments | 2 | 1 | |||
Total revenues | $ | $ 217,413 | $ 188,673 | $ 419,930 | $ 371,292 | |
Lease Receivable | Customer Concentration Risk | |||||
Accounting Principle [Line Items] | |||||
Concentration risk percentage | 50.00% |
Organization and Summary of Significant Accounting Policies - Impact of Adopted Standard (Details) - USD ($) $ in Thousands |
Jan. 01, 2019 |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|---|
Accounting Principle [Line Items] | |||
Current lease liability | $ 10,300 | $ 10,286 | $ 0 |
Operating lease right-of-use assets | 66,008 | 61,482 | 0 |
Accrued liabilities | 53,114 | 54,570 | 43,047 |
Other long-term liabilities | 5,712 | 9,603 | 9,562 |
Long-term operating lease liabilities | 59,791 | $ 55,237 | $ 0 |
Exit costs obligations | 100 | ||
Current rent credit | 100 | ||
Pre-Adjustment | |||
Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | 0 | ||
Accrued liabilities | 43,047 | ||
Other long-term liabilities | 9,562 | ||
Long-term operating lease liabilities | 0 | ||
Adjustment | Accounting Standards Update 2016-02 | |||
Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | 66,008 | ||
Accrued liabilities | 10,067 | ||
Other long-term liabilities | (3,850) | ||
Long-term operating lease liabilities | $ 59,791 |
Revenues - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2018 |
|
Revenue from External Customer [Line Items] | |||||
Fees to GPOs | $ 2,600 | $ 2,100 | $ 4,800 | $ 4,000 | |
Short-term deferred revenues | 83,012 | 83,012 | $ 81,835 | ||
Deferred revenues recognized | 25,700 | 65,000 | |||
Contract with Customer, Liability, Current, Gross | 92,900 | ||||
Long-term deferred revenues | 9,658 | 9,658 | 10,582 | ||
Deferred cost of sale,short-term | |||||
Revenue from External Customer [Line Items] | |||||
Short-term deferred revenues | $ 12,000 | $ 12,000 | $ 11,100 |
Revenues - Product revenue by type (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Revenue from External Customer [Line Items] | ||||
Total revenues | $ 217,413 | $ 188,673 | $ 419,930 | $ 371,292 |
Hardware and software | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 135,022 | 112,031 | 255,243 | 219,482 |
Consumables | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 19,416 | 19,670 | 40,503 | 39,108 |
Other | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 3,941 | 2,935 | 8,243 | 6,705 |
Product revenues | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | $ 158,379 | $ 134,636 | $ 303,989 | $ 265,295 |
Revenues - Revenues by Geographic Location (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Revenue from External Customer [Line Items] | ||||
Revenues | $ 217,413 | $ 188,673 | $ 419,930 | $ 371,292 |
United States | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 195,811 | 163,645 | 375,831 | 321,847 |
Rest of world | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | $ 21,602 | $ 25,028 | $ 44,099 | $ 49,445 |
Revenues - Contract Asset and Liabilities (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Revenue Recognition [Abstract] | ||
Short-term unbilled receivables - included in accounts receivable and unbilled receivables | $ 10,667 | $ 9,191 |
Other long-term assets | 13,630 | 16,481 |
Total contract assets | 24,297 | 25,672 |
Deferred revenues, net | 83,012 | 81,835 |
Long-term deferred revenues | 9,658 | 10,582 |
Total contract liabilities | $ 92,670 | $ 92,417 |
Net Income Per Share - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2019 |
Mar. 31, 2019 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Earnings Per Share [Abstract] | ||||||
Net income | $ 15,976 | $ 3,284 | $ 6,588 | $ 2,720 | $ 19,260 | $ 9,308 |
Weighted-average shares outstanding — basic (in shares) | 41,371 | 38,970 | 41,033 | 38,804 | ||
Effect of dilutive securities from stock award plans (in shares) | 1,574 | 1,030 | 1,613 | 1,050 | ||
Weighted-average shares outstanding — diluted (in shares) | 42,945 | 40,000 | 42,646 | 39,854 | ||
Net income per share - basic (in dollars per share) | $ 0.39 | $ 0.17 | $ 0.47 | $ 0.24 | ||
Net income per share - diluted (in dollars per share) | $ 0.37 | $ 0.16 | $ 0.45 | $ 0.23 | ||
Anti-dilutive weighted-average shares related to stock award plans (in shares) | 741 | 1,264 | 748 | 1,249 |
Cash and Cash Equivalents and Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
Dec. 31, 2016 |
---|---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | $ 87,482 | $ 67,192 | |
Fair value of the interest rate swap agreements | $ 562 | ||
Interest Rate Swap | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative, notional amount | $ 100,000 | ||
Derivative, fixed interest rate | 0.80% | ||
London Interbank Offered Rate (LIBOR) | Interest Rate Swap | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative, basis spread on variable rate | 0.00% |
Cash and Cash Equivalents and Fair Value of Financial Instruments - Schedule of Financial Assets Measured At Fair Value (Details) $ in Thousands |
Dec. 31, 2018
USD ($)
|
---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Interest rate swap contracts | $ 562 |
Total financial assets | 562 |
Level 1 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Interest rate swap contracts | 0 |
Total financial assets | 0 |
Level 2 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Interest rate swap contracts | 562 |
Total financial assets | 562 |
Level 3 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Interest rate swap contracts | 0 |
Total financial assets | $ 0 |
Balance Sheet Components - Balance Sheet Details (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Jan. 01, 2019 |
Dec. 31, 2018 |
---|---|---|---|
Inventories: | |||
Raw materials | $ 34,867 | $ 32,511 | |
Work in process | 7,867 | 8,726 | |
Finished goods | 61,172 | 59,631 | |
Total inventories | 103,906 | 100,868 | |
Other long-term assets: | |||
Capitalized software, net | 71,434 | 56,819 | |
Unbilled receivables | 13,630 | 16,481 | |
Other assets | 1,103 | 1,313 | |
Total other long-term assets, net | 86,167 | 74,613 | |
Accrued liabilities: | |||
Current lease liability | 10,286 | $ 10,300 | 0 |
Advance payments from customers | 6,494 | 8,993 | |
Rebates and lease buyouts | 13,031 | 11,076 | |
Group purchasing organization fees | 4,668 | 4,455 | |
Taxes payable | 4,038 | 5,885 | |
Other accrued liabilities | 16,053 | 12,638 | |
Total accrued liabilities | $ 54,570 | $ 43,047 |
Property and Equipment - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Property, Plant and Equipment [Abstract] | ||||
Depreciation | $ 4.4 | $ 3.8 | $ 8.4 | $ 7.3 |
Property and Equipment - Property, Plant and Equipment (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 160,022 | $ 152,289 |
Accumulated depreciation and amortization | (107,175) | (100,789) |
Total property and equipment, net | 52,847 | 51,500 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 77,676 | 75,417 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 8,441 | 7,844 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 18,103 | 16,274 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 47,408 | 42,048 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 8,394 | $ 10,706 |
Property and Equipment - Long-lived assets (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, net | $ 52,847 | $ 51,500 |
United States | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, net | 46,813 | 44,684 |
Rest of world | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, net | $ 6,034 | $ 6,816 |
Goodwill and Intangible Assets - Goodwill (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2019
USD ($)
| |
Goodwill Rollforward | |
Beginning balance | $ 335,887 |
Additions | 0 |
Foreign currency exchange rate fluctuations | (188) |
Ending balance | $ 335,699 |
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense of intangible assets | $ 4.7 | $ 6.0 | $ 9.5 | $ 12.0 |
Goodwill and Intangible Assets - Future Amortization Expense for Intangible Assets (Details) $ in Thousands |
Jun. 30, 2019
USD ($)
|
---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remaining six months of 2019 | $ 9,171 |
2020 | 17,499 |
2021 | 16,171 |
2022 | 14,819 |
2023 | 13,705 |
Thereafter | 62,736 |
Total | $ 134,101 |
Lessor Leases - Sales-type Lease Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Leases [Abstract] | ||||
Sales-type lease revenues | $ 13,309 | $ 7,533 | $ 24,816 | $ 17,390 |
Interest income on sales-type lease receivables | $ 399 | $ 314 | $ 808 | $ 581 |
Lessor Leases - Sale-Type Lease Receivable Components (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2019 |
Dec. 31, 2018 |
|
Capital Leased Assets [Line Items] | ||
Total future minimum sales-type lease payments | $ 33,279 | $ 28,295 |
Present value adjustment | (3,047) | (2,477) |
Net investment in sales-type leases | 30,232 | 25,818 |
Less: Current portion | (9,191) | (8,736) |
Long-term net investment in sales-type leases | $ 21,041 | 17,082 |
Minimum | ||
Capital Leased Assets [Line Items] | ||
Terms of sales-type leases (in years) | 1 year | |
Maximum | ||
Capital Leased Assets [Line Items] | ||
Terms of sales-type leases (in years) | 5 years | |
Allowance For Credit Losses | ||
Capital Leased Assets [Line Items] | ||
Sales-type Lease, Lease Receivable | $ 200 | $ 200 |
Lessor Leases - Sale-Type Leases Minimum Lease Receivables (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Leases [Abstract] | ||
Remaining six months of 2019 | $ 6,138 | |
2020 | 9,088 | |
2021 | 6,714 | |
2022 | 6,017 | |
2023 | 4,027 | |
Thereafter | 1,295 | |
Total future minimum sales-type lease payments | 33,279 | $ 28,295 |
Present value adjustment | (3,047) | (2,477) |
Sales-type, Lease Receivable | 30,232 | 25,818 |
Long-term investment in sales-type leases, net | $ 21,041 | $ 17,082 |
Lessor Leases - Operating Lease Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2018 |
|
Operating Leased Assets [Line Items] | |||||
Rental income | $ 3,365 | $ 3,011 | $ 6,652 | $ 5,801 | |
Total property and equipment, net | 52,847 | 52,847 | $ 51,500 | ||
Accumulated depreciation and amortization | 107,175 | 107,175 | 100,789 | ||
Depreciation | $ 4,400 | 3,800 | $ 8,400 | 7,300 | |
Minimum | |||||
Operating Leased Assets [Line Items] | |||||
Term of Contract ( in years ) | 1 year | 1 year | |||
Maximum | |||||
Operating Leased Assets [Line Items] | |||||
Term of Contract ( in years ) | 7 years | 7 years | |||
Equipment | |||||
Operating Leased Assets [Line Items] | |||||
Total property and equipment, net | $ 2,400 | $ 2,400 | 2,600 | ||
Accumulated depreciation and amortization | 1,300 | 1,300 | $ 1,200 | ||
Depreciation | $ 300 | $ 100 | $ 400 | $ 200 |
Lessor Leases - Minimum Future Payments from Non-Cancelable Sales-Type Leases (Details) $ in Thousands |
Jun. 30, 2019
USD ($)
|
---|---|
Leases [Abstract] | |
Remaining six months of 2019 | $ 6,790 |
2020 | 9,332 |
2021 | 7,033 |
2022 | 5,051 |
2023 | 2,901 |
Thereafter | 1,197 |
Total future minimum operating lease payments | $ 32,304 |
Lessee Leases - Minimum Future Payments on Non-Cancelable Operating Leases (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Jan. 01, 2019 |
Dec. 31, 2018 |
---|---|---|---|
Operating Leased Assets [Line Items] | |||
Remaining six months of 2019 | $ 7,239 | ||
2020 | 13,458 | ||
2021 | 12,866 | ||
2022 | 11,802 | ||
2023 | 8,409 | ||
Thereafter | 27,809 | ||
Total operating lease payments | 81,583 | ||
Present value adjustment | (16,060) | ||
Total operating lease liabilities | 65,523 | ||
Current lease liability | 10,286 | $ 10,300 | $ 0 |
Long-term operating lease liabilities | $ 55,237 | $ 59,791 | $ 0 |
Minimum | |||
Operating Leased Assets [Line Items] | |||
Term of Contract (in years) | 1 year | ||
Maximum | |||
Operating Leased Assets [Line Items] | |||
Term of Contract (in years) | 12 years |
Lessee Leases - Minimum Future Payments on Non-Cancelable Operating Leases Prior To ASC 842 Adoption (Details) $ in Thousands |
Dec. 31, 2018
USD ($)
|
---|---|
Operating Leased Assets [Line Items] | |
2019 | $ 14,153 |
2020 | 13,104 |
2021 | 12,729 |
2022 | 11,809 |
2023 | 8,334 |
Thereafter | 27,289 |
Total minimum future lease payments | $ 87,418 |
Lessee Leases - Lease Costs (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Lessee, Lease, Description [Line Items] | |||
Operating lease cost | $ 3,600 | $ 7,300 | |
Cash paid for amounts included in the measurement of lease liabilities | 7,391 | ||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 557 | $ 0 | |
Weighted Average Remaining Lease Term (in years) | 6 years 9 months 18 days | 6 years 9 months 18 days | |
Weighted-average discount rate ( as a percent ) | 6.40% | 6.40% |
Commitments and Contingencies - Narrative (Details) $ in Millions |
Jun. 30, 2019
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
Purchase Obligation | $ 61.3 |
Purchase obligation due within the remainder of the fiscal year | $ 53.9 |
Income Taxes - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2018 |
|
Income Tax Contingency [Line Items] | |||||
Annual effective tax rate ( as a percent ) | 24.80% | 16.50% | |||
Provision for (benefit from) income taxes | $ 1,158 | $ (150) | $ 9,225 | $ (4,966) | |
Unrecognized tax benefits | 14,200 | 14,200 | $ 10,000 | ||
Accrued interest and penalties | $ 1,600 | 1,600 | $ 1,400 | ||
Equity Compensation | |||||
Income Tax Contingency [Line Items] | |||||
Provision for (benefit from) income taxes | (7,000) | (2,600) | |||
Aesynt | |||||
Income Tax Contingency [Line Items] | |||||
Provision for (benefit from) income taxes | $ 9,600 | $ (4,200) |
Employee Benefits and Share-Based Compensation - Employee Stock Purchase Plan (ESPP) Activity (Details) - 1997 Employee stock purchase plan - Employee stock purchase plan (ESPP) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Purchases under ESPP (in shares) | 210 | 289 |
Exercised (in dollars per share) | $ 40.20 | $ 26.30 |
Unrecognized compensation cost | $ 2.6 | |
Weighted average period of compensation cost not yet recognized (in years) | 1 year 3 months 18 days |
Employee Benefits and Share-Based Compensation - Performance Based Restricted Stock Unit Activity (Details) - 2009 Plan - Performance Shares $ / shares in Units, shares in Thousands, $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2019
USD ($)
$ / shares
shares
| |
Number of Shares | |
Outstanding at beginning of period (in shares) | shares | 197 |
Granted (in shares) | shares | 71 |
Vested (in shares) | shares | (58) |
Canceled (in shares) | shares | (33) |
Outstanding and unvested at end of period (in shares) | shares | 177 |
Weighted-Average Grant Date Fair Value Per Share | |
Outstanding and unvested (in dollars per share) | $ / shares | $ 34.83 |
Granted (in dollars per share) | $ / shares | 73.38 |
Vested (in dollars per share) | $ / shares | 34.38 |
Canceled (in dollars per share) | $ / shares | 33.84 |
Outstanding and unvested (in dollars per share) | $ / shares | $ 50.67 |
Unrecognized compensation cost | $ | $ 4.9 |
Weighted average period of compensation cost not yet recognized (in years) | 1 year 6 months |
Employee Benefits and Share-Based Compensation - Stock Repurchase Program (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Aug. 02, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares acquired (in shares) | 0 | 0 | 0 | 0 | |
The 2016 Repurchase Program | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock repurchase, authorized amount | $ 50,000,000.0 | ||||
2016 and 2014 Share Repurchase Programs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock repurchase, remaining authorized repurchase amount | $ 54,900,000 | $ 54,900,000 |
Equity Offerings - Narrative (Details) - Distribution Agreement - USD ($) $ / shares in Units, shares in Thousands |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Nov. 03, 2017 |
Jun. 30, 2019 |
Jun. 30, 2019 |
|
Subsidiary, Sale of Stock [Line Items] | |||
Maximum aggregate offering price | $ 125,000,000.0 | ||
Consideration Received | $ 17,900,000 | $ 38,500,000 | |
Payments of Stock Issuance Costs | $ 300,000 | $ 700,000 | |
Number of Shares Issued ( in shares ) | 217 | 460 | |
Average price (per share) | $ 82.51 | $ 83.81 | |
Available to be offered | $ 31,500,000 | $ 31,500,000 |
Restructuring Expenses - Narrative (Details) - USD ($) $ in Millions |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2018 |
Dec. 31, 2018 |
|
Q4 2018 Restructuring Plan | Employee severance | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | $ 1.3 | |
Q1 2018 Restructuring Plan | Employee severance | ||
Restructuring Cost and Reserve [Line Items] | ||
Payments for Restructuring | $ 1.9 | |
Q1 2018 Restructuring Plan | Restructuring Cost | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | $ 3.0 |
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