ý | 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 |
Delaware | 33-0204817 | |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | |
201 E. Sandpointe Avenue, 8th Floor Santa Ana, California | 92707 | |
(Address of Principal Executive Offices) | (Zip Code) |
Large accelerated filer | ¨ | Accelerated filer | ý |
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
Page Number | |
June 30, 2013 | December 31, 2012 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 49,745 | $ | 44,593 | |||
Accounts receivable, net | 89,432 | 91,048 | |||||
Inventories, net | 100,050 | 84,381 | |||||
Prepaid expenses and other current assets | 3,654 | 3,661 | |||||
Income tax receivable | 6 | 270 | |||||
Deferred income taxes | 5,175 | 5,210 | |||||
Total current assets | 248,062 | 229,163 | |||||
Property, plant, and equipment, net | 76,337 | 77,706 | |||||
Goodwill | 30,876 | 30,890 | |||||
Intangible assets, net | 28,312 | 29,835 | |||||
Other assets | 5,195 | 5,361 | |||||
Deferred income taxes | 6,516 | 6,369 | |||||
Total assets | $ | 395,298 | $ | 379,324 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 65,947 | $ | 59,831 | |||
Line of credit | — | — | |||||
Accrued compensation | 33,005 | 33,398 | |||||
Accrued sales discounts, rebates and royalties | 6,179 | 8,093 | |||||
Accrued income taxes | 3,253 | 3,668 | |||||
Deferred income taxes | 45 | 41 | |||||
Other accrued expenses | 9,758 | 10,644 | |||||
Total current liabilities | 118,187 | 115,675 | |||||
Long-term liabilities: | |||||||
Deferred income taxes | 10,654 | 10,687 | |||||
Income tax payable | 525 | 525 | |||||
Other long-term liabilities | 2,055 | 1,787 | |||||
Total liabilities | 131,421 | 128,674 | |||||
Commitments and contingencies | |||||||
Stockholders' equity: | |||||||
Preferred stock, $0.01 par value, 5,000,000 shares authorized; none issued or outstanding | — | — | |||||
Common stock, $0.01 par value, 50,000,000 shares authorized; 21,839,302 and 21,491,398 shares issued on June 30, 2013 and December 31, 2012, respectively | 218 | 215 | |||||
Paid-in capital | 187,744 | 180,607 | |||||
Accumulated other comprehensive income (loss) | 576 | 1,052 | |||||
Retained earnings | 179,356 | 170,569 | |||||
367,894 | 352,443 | ||||||
Less cost of common stock in treasury, 6,619,048 and 6,516,382 shares on June 30, 2013 and December 31, 2012, respectively | (104,017 | ) | (101,793 | ) | |||
Total stockholders' equity | 263,877 | 250,650 | |||||
Total liabilities and stockholders' equity | $ | 395,298 | $ | 379,324 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net sales | $ | 136,109 | $ | 116,704 | $ | 250,831 | $ | 220,436 | |||||||
Cost of sales | 98,273 | 83,734 | 180,446 | 159,139 | |||||||||||
Gross profit | 37,836 | 32,970 | 70,385 | 61,297 | |||||||||||
Research and development expenses | 4,040 | 3,424 | 8,281 | 6,887 | |||||||||||
Selling, general and administrative expenses | 23,820 | 23,080 | 48,233 | 45,632 | |||||||||||
Operating income | 9,976 | 6,466 | 13,871 | 8,778 | |||||||||||
Interest income (expense), net | 4 | (51 | ) | 13 | (88 | ) | |||||||||
Other income (expense), net | (1,630 | ) | (126 | ) | (2,180 | ) | (450 | ) | |||||||
Income before provision for income taxes | 8,350 | 6,289 | 11,704 | 8,240 | |||||||||||
Provision for income taxes | 2,509 | 1,136 | 2,917 | 1,455 | |||||||||||
Net income | $ | 5,841 | $ | 5,153 | $ | 8,787 | $ | 6,785 | |||||||
Earnings per share: | |||||||||||||||
Basic | $ | 0.39 | $ | 0.35 | $ | 0.58 | $ | 0.46 | |||||||
Diluted | $ | 0.38 | $ | 0.34 | $ | 0.57 | $ | 0.45 | |||||||
Shares used in computing earnings per share: | |||||||||||||||
Basic | 15,098 | 14,933 | 15,032 | 14,904 | |||||||||||
Diluted | 15,419 | 15,048 | 15,322 | 15,080 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net income | $ | 5,841 | $ | 5,153 | $ | 8,787 | $ | 6,785 | |||||||
Other comprehensive income (loss): | |||||||||||||||
Change in foreign currency translation adjustment | 650 | (2,421 | ) | (476 | ) | (1,493 | ) | ||||||||
Comprehensive income | $ | 6,491 | $ | 2,732 | $ | 8,311 | $ | 5,292 |
Six Months Ended June 30, | |||||||
2013 | 2012 | ||||||
Cash provided by (used for) operating activities: | |||||||
Net income | $ | 8,787 | $ | 6,785 | |||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | |||||||
Depreciation and amortization | 8,788 | 8,525 | |||||
Provision for doubtful accounts | 48 | 37 | |||||
Provision for inventory write-downs | 1,130 | 1,623 | |||||
Deferred income taxes | (111 | ) | 6 | ||||
Tax benefit from exercise of stock options and vested restricted stock | 399 | (72 | ) | ||||
Excess tax benefit from stock-based compensation | (366 | ) | (30 | ) | |||
Shares issued for employee benefit plan | 446 | 468 | |||||
Stock-based compensation | 2,561 | 2,337 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 638 | (4,678 | ) | ||||
Inventories | (16,996 | ) | 10,630 | ||||
Prepaid expenses and other assets | 143 | (711 | ) | ||||
Accounts payable and accrued expenses | 2,647 | (13,523 | ) | ||||
Accrued income and other taxes | (168 | ) | (2,796 | ) | |||
Net cash provided by (used for) operating activities | 7,946 | 8,601 | |||||
Cash used for investing activities: | |||||||
Acquisition of property, plant, and equipment | (4,655 | ) | (4,261 | ) | |||
Acquisition of intangible assets | (654 | ) | (430 | ) | |||
Net cash used for investing activities | (5,309 | ) | (4,691 | ) | |||
Cash provided by (used for) financing activities: | |||||||
Issuance of debt | 19,500 | 8,000 | |||||
Payment of debt | (19,500 | ) | (11,400 | ) | |||
Proceeds from stock options exercised | 3,946 | 1,386 | |||||
Treasury stock purchased | (2,435 | ) | (486 | ) | |||
Excess tax benefit from stock-based compensation | 366 | 30 | |||||
Net cash provided by (used for) financing activities | 1,877 | (2,470 | ) | ||||
Effect of exchange rate changes on cash | 638 | (124 | ) | ||||
Net increase (decrease) in cash and cash equivalents | 5,152 | 1,316 | |||||
Cash and cash equivalents at beginning of year | 44,593 | 29,372 | |||||
Cash and cash equivalents at end of period | $ | 49,745 | $ | 30,688 | |||
Supplemental Cash Flow Information: | |||||||
Income taxes paid | $ | 2,420 | $ | 5,354 | |||
Interest paid | $ | 43 | $ | 176 |
(In thousands) | June 30, 2013 | December 31, 2012 | |||||
United States | $ | 14,208 | $ | 2,741 | |||
Asia | 25,758 | 27,317 | |||||
Europe | 6,079 | 9,361 | |||||
Cayman Islands | 1 | 1 | |||||
South America | 3,699 | 5,173 | |||||
Total cash and cash equivalents | $ | 49,745 | $ | 44,593 |
(In thousands) | June 30, 2013 | December 31, 2012 | |||||
Trade receivables, gross | $ | 87,664 | $ | 90,056 | |||
Allowance for doubtful accounts | (325 | ) | (322 | ) | |||
Allowance for sales returns | (588 | ) | (996 | ) | |||
Net trade receivables | 86,751 | 88,738 | |||||
Other | 2,681 | 2,310 | |||||
Accounts receivable, net | $ | 89,432 | $ | 91,048 |
(In thousands) Description | Balance at Beginning of Period | Additions to Costs and Expenses | (Write-offs)/ FX Effects | Balance at End of Period | ||||||||||
Valuation account for trade receivables: | ||||||||||||||
Six months ended June 30, 2013 | $ | 322 | 48 | (45 | ) | $ | 325 | |||||||
Six months ended June 30, 2012 | $ | 1,021 | 37 | (7 | ) | $ | 1,051 |
Three Months Ended June 30, | |||||||||||||
2013 | 2012 | ||||||||||||
$ (thousands) | % of Net Sales | $ (thousands) | % of Net Sales | ||||||||||
DIRECTV | $ | 22,137 | 16.3 | % | $ | 19,215 | 16.5 | % |
Six Months Ended June 30, | |||||||||||||
2013 | 2012 | ||||||||||||
$ (thousands) | % of Net Sales | $ (thousands) | % of Net Sales | ||||||||||
DIRECTV | $ | 42,984 | 17.1 | % | $ | 35,426 | 16.1 | % |
June 30, 2013 | December 31, 2012 | ||||||||||||
$ (thousands) | % of Accounts Receivable, Net | $ (thousands) | % of Accounts Receivable, Net | ||||||||||
DIRECTV | $ | 10,360 | 11.6 | % | $ | 9,277 | 10.2 | % |
(In thousands) | June 30, 2013 | December 31, 2012 | |||||
Raw materials | $ | 23,683 | $ | 17,438 | |||
Components | 16,733 | 20,978 | |||||
Work in process | 3,250 | 1,050 | |||||
Finished goods | 58,306 | 46,939 | |||||
Reserve for excess and obsolete inventory | (1,922 | ) | (2,024 | ) | |||
Inventories, net | $ | 100,050 | $ | 84,381 |
(In thousands) Description | Balance at Beginning of Period | Additions Charged to Costs and Expenses (1) | Sell Through(2) | Write-offs/FX Effects | Balance at End of Period | |||||||||||||||
Reserve for excess and obsolete inventory: | ||||||||||||||||||||
Six months ended June 30, 2013 | $ | 2,024 | $ | 1,022 | $ | (219 | ) | $ | (905 | ) | $ | 1,922 | ||||||||
Six months ended June 30, 2012 | $ | 3,447 | $ | 1,386 | $ | (558 | ) | $ | (1,238 | ) | $ | 3,037 |
(1) | The additions charged to costs and expenses do not include inventory directly written-off that was scrapped during production totaling $0.1 million and $0.2 million for the six months ended June 30, 2013 and 2012, respectively. These amounts are production waste and are not included in management’s reserve for excess and obsolete inventory. |
(2) | This column represents the reversal of reserves associated with inventory items that were sold during the period. Sell through is the result of differences between our judgment concerning the saleability of inventory items during the excess and obsolete inventory review process and our subsequent experience. |
Three Months Ended June 30, | ||||||||||||
2013 | 2012 | |||||||||||
$ (thousands) | % of Total Inventory Purchases | $ (thousands) | % of Total Inventory Purchases | |||||||||
Samsung | $ | — | — | $ | 5,719 | 10.0 | % |
Six Months Ended June 30, | ||||||||||||
2013 | 2012 | |||||||||||
$ (thousands) | % of Total Inventory Purchases | $ (thousands) | % of Total Inventory Purchases | |||||||||
Samsung | $ | — | — | $ | 10,935 | 10.2 | % | |||||
Samjin | $ | — | — | $ | 11,193 | 10.4 | % |
Three Months Ended June 30, | |||||||||||||
2013 | 2012 | ||||||||||||
$ (thousands) | % of Total Inventory Purchases | $ (thousands) | % of Total Inventory Purchases | ||||||||||
Related party vendor | $ | 2,469 | 3.0 | % | $ | 2,152 | 3.8 | % |
Six Months Ended June 30, | |||||||||||||
2013 | 2012 | ||||||||||||
$ (thousands) | % of Total Inventory Purchases | $ (thousands) | % of Total Inventory Purchases | ||||||||||
Related party vendor | $ | 4,685 | 3.2 | % | $ | 3,507 | 3.3 | % |
June 30, 2013 | December 31, 2012 | ||||||||||||
$ (thousands) | % of Accounts Payable | $ (thousands) | % of Accounts Payable | ||||||||||
Related party vendor | $ | 1,476 | 2.2 | % | $ | 1,815 | 3.0 | % |
(In thousands) | |||
Balance at December 31, 2012 | $ | 30,890 | |
Foreign currency | (14 | ) | |
Balance at June 30, 2013 | $ | 30,876 |
June 30, 2013 | December 31, 2012 | ||||||||||||||||||||||
(In thousands) | Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | |||||||||||||||||
Carrying amount (1): | |||||||||||||||||||||||
Distribution rights | $ | 373 | $ | (50 | ) | $ | 323 | $ | 378 | $ | (50 | ) | $ | 328 | |||||||||
Patents | 8,541 | (4,097 | ) | 4,444 | 8,113 | (3,847 | ) | 4,266 | |||||||||||||||
Trademark and trade names | 2,840 | (1,268 | ) | 1,572 | 2,841 | (1,127 | ) | 1,714 | |||||||||||||||
Developed and core technology | 3,505 | (1,022 | ) | 2,483 | 3,507 | (906 | ) | 2,601 | |||||||||||||||
Capitalized software development costs | 327 | (119 | ) | 208 | 1,276 | (913 | ) | 363 | |||||||||||||||
Customer relationships | 26,400 | (7,118 | ) | 19,282 | 26,415 | (5,852 | ) | 20,563 | |||||||||||||||
Total carrying amount | $ | 41,986 | $ | (13,674 | ) | $ | 28,312 | $ | 42,530 | $ | (12,695 | ) | $ | 29,835 |
(1) | This table excludes the gross value of fully amortized intangible assets totaling $6.3 million and $9.1 million on June 30, 2013 and December 31, 2012, respectively. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(In thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||
Cost of sales | $ | 51 | $ | 76 | $ | 143 | $ | 157 | |||||||
Selling, general and administrative | 973 | 962 | 1,945 | 1,920 | |||||||||||
Total amortization expense | $ | 1,024 | $ | 1,038 | $ | 2,088 | $ | 2,077 |
(In thousands) | |||
2013 (remaining 6 months) | $ | 2,048 | |
2014 | 4,053 | ||
2015 | 3,888 | ||
2016 | 3,871 | ||
2017 | 3,842 | ||
Thereafter | 10,610 | ||
Total | $ | 28,312 |
(In thousands) | June 30, 2013 | December 31, 2012 | |||||
Accrued social insurance (1) | $ | 20,135 | $ | 19,842 | |||
Accrued salary/wages | 5,393 | 4,862 | |||||
Accrued vacation/holiday | 2,202 | 2,048 | |||||
Accrued bonus (2) | 3,076 | 4,181 | |||||
Accrued commission | 470 | 478 | |||||
Accrued medical insurance claims | 669 | 643 | |||||
Other accrued compensation | 1,060 | 1,344 | |||||
Total accrued compensation | $ | 33,005 | $ | 33,398 |
(1) | Effective January 1, 2008, the Chinese Labor Contract Law was enacted in the PRC. This law mandated that PRC employers remit the applicable social insurance payments to their local government. Social insurance is comprised of various components such as pension, medical insurance, job injury insurance, unemployment insurance, and a housing assistance fund, and is administered in a manner similar to social security in the United States. This amount represents our estimate of the amounts due to the PRC government for social insurance on June 30, 2013 and December 31, 2012. |
(2) | Accrued bonus includes an accrual for an extra month of salary ("13th month salary") to be paid to employees in certain geographies where it is the customary business practice. This 13th month salary is paid to these employees if they remain employed with us through December 31st. The total accrued for the 13th month salary was $0.4 million and $0.5 million at June 30, 2013 and December 31, 2012, respectively. |
(In thousands) | June 30, 2013 | December 31, 2012 | |||||
Advertising and marketing | $ | 478 | $ | 501 | |||
Duties | 819 | 584 | |||||
Freight | 1,458 | 1,666 | |||||
Product development | 381 | 569 | |||||
Product warranty claim costs | 279 | 404 | |||||
Professional fees | 806 | 1,234 | |||||
Sales taxes and VAT | 671 | 1,979 | |||||
Third-party commissions | 677 | 337 | |||||
Tooling (1) | 638 | 221 | |||||
Utilities | 356 | 316 | |||||
Other | 3,195 | 2,833 | |||||
Total other accrued expenses | $ | 9,758 | $ | 10,644 |
(1) | The tooling accrual balance relates to unearned revenue for tooling that will be sold to customers. |
(In thousands) Description | Balance at Beginning of Period | Accruals for Warranties Issued During the Period | Settlements (in Cash or in Kind) During the Period | Balance at End of Period | ||||||||||||
Reserve for product warranty claim costs: | ||||||||||||||||
Six months ended June 30, 2013 | $ | 404 | $ | 375 | $ | (500 | ) | $ | 279 | |||||||
Six months ended June 30, 2012 | $ | 6 | $ | — | $ | — | $ | 6 |
Six Months Ended June 30, | |||||||
(In thousands, except share data) | 2013 | 2012 | |||||
Shares repurchased | 117,666 | 27,980 | |||||
Cost of shares repurchased | $ | 2,435 | $ | 486 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(In thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||
Net sales: | |||||||||||||||
United States | $ | 47,979 | $ | 40,129 | $ | 92,747 | $ | 74,349 | |||||||
Asia (excluding PRC) | 29,575 | 32,857 | 51,735 | 61,519 | |||||||||||
People's Republic of China | 24,803 | 19,287 | 41,624 | 34,709 | |||||||||||
Europe | 17,992 | 14,982 | 33,521 | 28,134 | |||||||||||
Latin America | 8,887 | 5,109 | 16,710 | 12,141 | |||||||||||
Other | 6,873 | 4,340 | 14,494 | 9,584 | |||||||||||
Total net sales | $ | 136,109 | $ | 116,704 | $ | 250,831 | $ | 220,436 |
(In thousands) | June 30, 2013 | December 31, 2012 | |||||
Long-lived tangible assets: | |||||||
United States | $ | 5,242 | $ | 5,541 | |||
People's Republic of China | 73,015 | 73,804 | |||||
All other countries | 3,275 | 3,722 | |||||
Total | $ | 81,532 | $ | 83,067 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(In thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||
Research and development | $ | 55 | $ | 45 | $ | 112 | $ | 115 | |||||||
Selling, general and administrative: | |||||||||||||||
Employees | 1,149 | 890 | 2,258 | 1,812 | |||||||||||
Outside directors | 96 | 205 | 191 | 410 | |||||||||||
Total stock-based compensation expense | $ | 1,300 | $ | 1,140 | $ | 2,561 | $ | 2,337 | |||||||
Income tax benefit | $ | 415 | $ | 360 | $ | 804 | $ | 767 |
Number of Options (in 000's) | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Terms (in years) | Aggregate Intrinsic Value (in 000's) | |||||||
Outstanding at December 31, 2012 | 1,412 | $ | 20.56 | |||||||
Granted | 201 | 19.68 | ||||||||
Exercised | (273 | ) | 14.44 | $ | 2,703 | |||||
Forfeited/canceled/expired | (7 | ) | 28.08 | |||||||
Outstanding at June 30, 2013 (1) | 1,333 | $ | 21.64 | 5.72 | $ | 8,799 | ||||
Vested and expected to vest at June 30, 2013 (1) | 1,329 | $ | 21.65 | 5.70 | $ | 8,763 | ||||
Exercisable on June 30, 2013 (1) | 989 | $ | 21.89 | 4.60 | $ | 6,279 |
(1) | The aggregate intrinsic value represents the total pre-tax value (the difference between our closing stock price on the last trading day of the second quarter of 2013 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had they all exercised their options on June 30, 2013. This amount will change based on the fair market value of our stock. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Weighted average fair value of grants (1) | $ | 10.04 | $ | — | $ | 9.26 | $ | 9.65 | |||||||
Risk-free interest rate | 0.73 | % | — | 0.95 | % | 0.86 | % | ||||||||
Expected volatility | 52.38 | % | — | 53.39 | % | 55.25 | % | ||||||||
Expected life in years | 5.20 | — | 5.20 | 5.14 |
(1) | The weighted average fair value of grants was calculated utilizing the stock options granted during each respective period. |
Shares Granted (in 000’s) | Weighted-Average Grant Date Fair Value | |||||
Non-vested at December 31, 2012 | 270 | $ | 18.72 | |||
Granted | 80 | 19.25 | ||||
Vested | (72 | ) | 20.74 | |||
Forfeited | — | — | ||||
Non-vested at June 30, 2013 | 278 | 18.34 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(In thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||
Net gain (loss) on foreign currency exchange contracts (1) | $ | (57 | ) | $ | (254 | ) | $ | (255 | ) | $ | (214 | ) | |||
Net gain (loss) on foreign currency exchange transactions | (1,596 | ) | 111 | (1,949 | ) | (339 | ) | ||||||||
Other income | 23 | 17 | 24 | 103 | |||||||||||
Other income (expense), net | $ | (1,630 | ) | $ | (126 | ) | $ | (2,180 | ) | $ | (450 | ) |
(1) | This represents the gains and (losses) incurred on foreign currency hedging derivatives (see Note 16 for further details). |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(In thousands, except per-share amounts) | 2013 | 2012 | 2013 | 2012 | |||||||||||
BASIC | |||||||||||||||
Net income | $ | 5,841 | $ | 5,153 | $ | 8,787 | $ | 6,785 | |||||||
Weighted-average common shares outstanding | 15,098 | 14,933 | 15,032 | 14,904 | |||||||||||
Basic earnings per share | $ | 0.39 | $ | 0.35 | $ | 0.58 | $ | 0.46 | |||||||
DILUTED | |||||||||||||||
Net income | $ | 5,841 | $ | 5,153 | $ | 8,787 | $ | 6,785 | |||||||
Weighted-average common shares outstanding for basic | 15,098 | 14,933 | 15,032 | 14,904 | |||||||||||
Dilutive effect of stock options and restricted stock | 321 | 115 | 290 | 176 | |||||||||||
Weighted-average common shares outstanding on a diluted basis | 15,419 | 15,048 | 15,322 | 15,080 | |||||||||||
Diluted earnings per share | $ | 0.38 | $ | 0.34 | $ | 0.57 | $ | 0.45 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
(In thousands) | 2013 | 2012 | 2013 | 2012 | |||||||
Stock options | 641 | 1,228 | 729 | 967 | |||||||
Restricted stock shares | — | 167 | 30 | 162 |
June 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||
(In thousands) | Fair Value Measurement Using | Total | Fair Value Measurement Using | Total | ||||||||||||||||||||||||||||
Description | (Level 1) | (Level 2) | (Level 3) | Balance | (Level 1) | (Level 2) | (Level 3) | Balance | ||||||||||||||||||||||||
Foreign currency exchange futures contracts | $ | — | $ | (172 | ) | $ | — | $ | (172 | ) | $ | — | $ | (13 | ) | $ | — | $ | (13 | ) |
Date Held | Type | Position Held | Notional Value (in millions) | Forward Rate | Gain/(Loss) Recorded at Balance Sheet Date (in thousands)(1) | Settlement Date | |||||||||||
June 30, 2013 | USD/Euro | Euro | $ | 6.0 | 1.3405 | $ | (172 | ) | July 26, 2013 | ||||||||
December 31, 2012 | USD/Euro | Euro | $ | 5.0 | 1.3228 | $ | (13 | ) | January 18, 2013 |
(1) | Gains on futures contracts are recorded in prepaid expenses and other current assets. Losses on futures contracts are recorded in other accrued expenses. |
• | Our net sales increased 13.8% to 250.8 million for the six months ended June 30, 2013 from $220.4 million for the six months ended June 30, 2012. |
• | Our gross margin percentage improved from 27.8% for the six months ended June 30, 2012 to 28.1% for the six months ended June 30, 2013. This improvement was primarily due to an increase in units produced internally versus units produced by third-party manufacturers. |
• | Operating expenses, as a percent of sales, decreased from 23.8% for the six months ended June 30, 2012 to 22.5% for the six months ended June 30, 2013. |
• | Our operating income increased 58.0% to $13.9 million for the six months ended June 30, 2013 from $8.8 million for the six months ended June 30, 2012, and our operating margin percentage increased to 5.6% for the six months ended June 30, 2013, compared to 4.0% for the six months ended June 30, 2012. |
• | Our effective tax rate increased to 24.9% for the six months ended June 30, 2013, compared to 17.7% for the six months ended June 30, 2012. |
• | continue to develop industry-leading technologies and products with attractive gross margins in order to improve profitability; |
• | continue to increase our market share in new product categories, such as smart devices and game consoles; |
• | further penetrate the growing Asian and Latin American subscription broadcasting markets; |
• | acquire new customers in historically strong regions; |
• | increase our share with existing customers; and |
• | continue to seek acquisitions or strategic partners that complement and strengthen our existing business. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
(In thousands) | 2013 | 2012 | 2013 | 2012 | |||||||
Net sales | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||
Cost of sales | 72.2 | 71.7 | 71.9 | 72.2 | |||||||
Gross profit | 27.8 | 28.3 | 28.1 | 27.8 | |||||||
Research and development expenses | 3.0 | 2.9 | 3.3 | 3.1 | |||||||
Selling, general and administrative expenses | 17.5 | 19.9 | 19.2 | 20.7 | |||||||
Operating income | 7.3 | 5.5 | 5.6 | 4.0 | |||||||
Interest income (expense), net | — | — | — | — | |||||||
Other income (expense), net | (1.2 | ) | (0.1 | ) | (0.9 | ) | (0.2 | ) | |||
Income before provision for income taxes | 6.1 | 5.4 | 4.7 | 3.8 | |||||||
Provision for income taxes | 1.8 | 1.0 | 1.2 | 0.7 | |||||||
Net income | 4.3 | % | 4.4 | % | 3.5 | % | 3.1 | % |
Three Months Ended June 30, | |||||||||||||
2013 | 2012 | ||||||||||||
$ (millions) | % of total | $ (millions) | % of total | ||||||||||
Net sales: | |||||||||||||
Business | $ | 124.2 | 91.3 | % | $ | 103.9 | 89.0 | % | |||||
Consumer | 11.9 | 8.7 | % | 12.8 | 11.0 | % | |||||||
Total net sales | $ | 136.1 | 100.0 | % | $ | 116.7 | 100.0 | % |
Six Months Ended June 30, | |||||||||||||
2013 | 2012 | ||||||||||||
$ (millions) | % of total | $ (millions) | % of total | ||||||||||
Net sales: | |||||||||||||
Business | $ | 228.8 | 91.2 | % | $ | 196.3 | 89.1 | % | |||||
Consumer | 22.0 | 8.8 | % | 24.1 | 10.9 | % | |||||||
Total net sales | $ | 250.8 | 100.0 | % | $ | 220.4 | 100.0 | % |
(In thousands) | Six Months Ended June 30, 2013 | Increase (Decrease) | Six Months Ended June 30, 2012 | ||||||||
Cash provided by operating activities | $ | 7,946 | $ | (655 | ) | $ | 8,601 | ||||
Cash used for investing activities | (5,309 | ) | (618 | ) | (4,691 | ) | |||||
Cash provided by (used for) financing activities | 1,877 | 4,347 | (2,470 | ) | |||||||
Effect of exchange rate changes on cash | 638 | 762 | (124 | ) |
June 30, 2013 | Increase (Decrease) | December 31, 2012 | |||||||||
Cash and cash equivalents | $ | 49,745 | $ | 5,152 | $ | 44,593 | |||||
Working capital | 129,875 | 16,387 | 113,488 |
Payments Due by Period | |||||||||||||||||||
(In thousands) | Total | Less than 1 year | 1 - 3 years | 4 - 5 years | After 5 years | ||||||||||||||
Contractual obligations: | |||||||||||||||||||
Operating lease obligations | $ | 11,578 | $ | 2,309 | $ | 3,417 | $ | 2,031 | $ | 3,821 | |||||||||
Capital lease obligations | 83 | 20 | 40 | 23 | — | ||||||||||||||
Purchase obligations(1) (2) | 590 | 590 | — | — | — | ||||||||||||||
Total contractual obligations | $ | 12,251 | $ | 2,919 | $ | 3,457 | $ | 2,054 | $ | 3,821 |
(1) | Purchase obligations include contractual payments to purchase tooling assets. |
(2) | We issue cancelable purchase orders for our inventory purchases, which we exclude from the above contractual obligations table. We have determined that $76.7 million previously reported as inventory purchase obligations, all of which related to one contractual arrangement, are not contractually binding and thus have removed them from this table. |
(In thousands) | June 30, 2013 | December 31, 2012 | |||||
Cash and cash equivalents | $ | 49,745 | $ | 44,593 | |||
Debt | — | — | |||||
Available borrowing resources | 54,987 | 55,000 |
Period | Total Number of Shares Purchased | Weighted Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs | |||||||||
April 1, 2013 - April 30, 2013 | 5,552 | $ | 22.17 | 5,552 | 1,000,000 | ||||||||
May 1, 2013 - May 31, 2013 | 29,774 | 24.06 | 29,774 | 970,226 | |||||||||
June 1, 2013 - June 30, 2013 | 1,321 | 28.41 | 1,321 | 968,905 | |||||||||
Total | 36,647 | $ | 23.93 | 36,647 | 968,905 |
31.1 | Rule 13a-14(a) Certifications of Paul D. Arling, Chief Executive Officer (principal executive officer) of Universal Electronics Inc. | |
31.2 | Rule 13a-14(a) Certifications of Bryan M. Hackworth, Chief Financial Officer (principal financial officer and principal accounting officer) of Universal Electronics Inc. | |
32 | Section 1350 Certifications of Paul D. Arling, Chief Executive Officer (principal executive officer) of Universal Electronics Inc., and Bryan M. Hackworth, Chief Financial Officer (principal financial officer and principal accounting officer) of Universal Electronics Inc. pursuant to 18 U.S.C. Section 1350 | |
*101.INS | XBRL Instance Document | |
*101.SCH | XBRL Taxonomy Extension Schema Document | |
*101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |
*101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |
*101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |
*101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | |
* | XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, and otherwise is not subject to liability under these sections. |
Dated: | August 8, 2013 | UNIVERSAL ELECTRONICS INC. | |||
By: | /s/ Bryan M. Hackworth | ||||
Bryan M. Hackworth | |||||
Chief Financial Officer (principal financial officer | |||||
and principal accounting officer) |
Exhibit No. | Description | |
31.1 | Rule 13a-14(a) Certifications of Paul D. Arling, Chief Executive Officer (principal executive officer) of Universal Electronics Inc. | |
31.2 | Rule 13a-14(a) Certifications of Bryan M. Hackworth, Chief Financial Officer (principal financial officer and principal accounting officer) of Universal Electronics Inc. | |
32 | Section 1350 Certifications of Paul D. Arling, Chief Executive Officer (principal executive officer) of Universal Electronics Inc., and Bryan M. Hackworth, Chief Financial Officer (principal financial officer and principal accounting officer) of Universal Electronics Inc. pursuant to 18 U.S.C. Section 1350 | |
*101.INS | XBRL Instance Document | |
*101.SCH | XBRL Taxonomy Extension Schema Document | |
*101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |
*101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |
*101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |
*101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | |
* | XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, and otherwise is not subject to liability under these sections. |
1. | I have reviewed this quarterly report on Form 10-Q of Universal Electronics Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors: |
/s/ Paul D. Arling |
Paul D. Arling |
Chairman and Chief Executive Officer (principal executive officer) |
1. | I have reviewed this quarterly report on Form 10-Q of Universal Electronics Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors: |
/s/ Bryan M. Hackworth |
Bryan M. Hackworth |
Chief Financial Officer (principal financial officer and principal accounting officer) |
Dated: | August 8, 2013 | By: | /s/ Paul D. Arling | ||
Chief Executive Officer | |||||
By: | /s/ Bryan M. Hackworth | ||||
Chief Financial Officer |
Treasury Stock
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Treasury Stock | Treasury Stock Repurchased shares of our common stock were as follows:
Repurchased shares are recorded as shares held in treasury at cost. We hold these shares for future use as management and the Board of Directors deem appropriate, which has included compensating our outside directors. During the six months ended June 30, 2013 and 2012, we issued 15,000 and 22,500 shares from treasury, respectively, to outside directors for services performed (see Note 13). From time to time, our Board of Directors authorizes management to repurchase shares of our issued and outstanding common stock. Repurchases may be made to manage dilution created by shares issued under our stock incentive plans or whenever we deem a repurchase is a good use of our cash and the price to be paid is at or below a threshold approved by our Board. As of June 30, 2013, we had 968,905 shares available for repurchase under the Board's authorizations. |
Other Accrued Expenses (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
||||
---|---|---|---|---|---|---|
Components of other accrued expenses | ||||||
Advertising and marketing | $ 478 | $ 501 | ||||
Duties | 819 | 584 | ||||
Freight | 1,458 | 1,666 | ||||
Product development | 381 | 569 | ||||
Product warranty claim costs | 279 | 404 | ||||
Professional fees | 806 | 1,234 | ||||
Sales and Value Added Tax Payable Current | 671 | 1,979 | ||||
Third-party commissions | 677 | 337 | ||||
Tooling | 638 | [1] | 221 | [1] | ||
Utilities | 356 | 316 | ||||
Other | 3,195 | 2,833 | ||||
Total other accrued expenses | $ 9,758 | $ 10,644 | ||||
|
CONSOLIDATED INCOME STATEMENTS (USD $)
In Thousands, except Per Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Income Statement [Abstract] | ||||
Net sales | $ 136,109 | $ 116,704 | $ 250,831 | $ 220,436 |
Cost of sales | 98,273 | 83,734 | 180,446 | 159,139 |
Gross profit | 37,836 | 32,970 | 70,385 | 61,297 |
Research and development expenses | 4,040 | 3,424 | 8,281 | 6,887 |
Selling, general and administrative expenses | 23,820 | 23,080 | 48,233 | 45,632 |
Operating income | 9,976 | 6,466 | 13,871 | 8,778 |
Interest income (expense), net | 4 | (51) | 13 | (88) |
Other income (expense), net | (1,630) | (126) | (2,180) | (450) |
Income before provision for income taxes | 8,350 | 6,289 | 11,704 | 8,240 |
Provision for income taxes | 2,509 | 1,136 | 2,917 | 1,455 |
Net income | $ 5,841 | $ 5,153 | $ 8,787 | $ 6,785 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.39 | $ 0.35 | $ 0.58 | $ 0.46 |
Diluted (in dollars per share) | $ 0.38 | $ 0.34 | $ 0.57 | $ 0.45 |
Shares used in computing earnings per share: | ||||
Basic (in shares) | 15,098 | 14,933 | 15,032 | 14,904 |
Diluted (in shares) | 15,419 | 15,048 | 15,322 | 15,080 |
Inventories, Net and Significant Suppliers
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Jun. 30, 2013
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Inventories, Net and Significant Suppliers [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories, Net and Significant Suppliers | Inventories, Net and Significant Suppliers Inventories, net were as follows:
Reserve for Excess and Obsolete Inventory Changes in the reserve for excess and obsolete inventory were as follows:
Significant Suppliers We purchase integrated circuits, components and finished goods from multiple sources. We had purchases from the following significant suppliers that totaled more than 10% of our total inventory purchases as follows:
We have identified alternative sources of supply for these integrated circuits, components, and finished goods; however, there can be no assurance that we will be able to continue to obtain these inventory purchases on a timely basis. We maintain inventories of our integrated circuits, which may be utilized to mitigate, but not eliminate, delays resulting from supply interruptions. An extended interruption, shortage or termination in the supply of any of the components used in our products, a reduction in their quality or reliability, or a significant increase in the prices of components, would have an adverse effect on our operating results, financial condition and cash flows. Related Party Vendor We purchase certain printed circuit board assemblies from a related party vendor. The vendor is considered a related party for financial reporting purposes because our Senior Vice President of Manufacturing owns 40% of this vendor. Inventory purchases from this vendor were as follows:
The total accounts payable to this vendor were the following:
Our payable terms and pricing with this vendor are consistent with the terms offered by other vendors in the ordinary course of business. The accounting policies that we apply to our transactions with our related party vendor are consistent with those applied in transactions with independent third parties. Corporate management routinely monitors purchases from our related party vendor to ensure these purchases remain consistent with our business objectives. |
Cash and Cash Equivalents (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Cash and Cash Equivalents [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash and Cash Equivalents by Geographic Region | Cash and cash equivalents were held in the following geographic regions:
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Earnings Per Share - Antidilutive Shares (Details)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
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Jun. 30, 2012
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Jun. 30, 2013
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Jun. 30, 2012
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Stock Options [Member]
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Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Stock options and restricted stock excluded in computation of diluted earning per share | 641 | 1,228 | 729 | 967 |
Non-vested restricted stock award [Member]
|
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Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Stock options and restricted stock excluded in computation of diluted earning per share | 0 | 167 | 30 | 162 |
Commitments and Contingencies - Defined Benefit Plan (Details) (India Subsidiary [Member])
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Jun. 30, 2013
|
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India Subsidiary [Member]
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Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Percentage of Employees Eligible for Benefits | 38.00% |
Defined Benefit Plan, Minimum Service Period of Employees to be Eligible Under Plan | 5 years |
Defined Benefit Plan, Number of Days Salary Payable under Termination Resignation or Retirement | 15 days |
Business Segment and Foreign Operations
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segment and Foreign Operations | Business Segment and Foreign Operations Reportable Segment An operating segment, in part, is a component of an enterprise whose operating results are regularly reviewed by the chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance. Operating segments may be aggregated only to a limited extent. Our chief operating decision maker, the Chief Executive Officer, reviews financial information presented on a consolidated basis, accompanied by disaggregated information about revenues for purposes of making operating decisions and assessing financial performance. Accordingly, we only have a single operating and reportable segment. Foreign Operations Our net sales to external customers by geographic area were as follows:
Specific identification of the customer billing location was the basis used for attributing revenues from external customers to geographic areas. Long-lived tangible assets were as follows:
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Goodwill and Intangible Assets, Net - Finite-Lived Intangibles (Details) (USD $)
|
3 Months Ended | 6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
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Jun. 30, 2012
|
Dec. 31, 2012
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Schedule of components of intangible assets | ||||||||||
Gross | $ 41,986,000 | $ 41,986,000 | $ 42,530,000 | |||||||
Accumulated Amortization | (13,674,000) | (13,674,000) | (12,695,000) | |||||||
Intangible assets, net | 28,312,000 | 28,312,000 | 29,835,000 | |||||||
Finite-Lived Intangible Assets, Fully Amortized, Gross | 6,300,000 | 6,300,000 | 9,100,000 | |||||||
Amortization expense | 1,024,000 | 1,038,000 | 2,088,000 | 2,077,000 | ||||||
Distribution Rights [Member]
|
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Schedule of components of intangible assets | ||||||||||
Gross | 373,000 | [1] | 373,000 | [1] | 378,000 | [1] | ||||
Accumulated Amortization | (50,000) | [1] | (50,000) | [1] | (50,000) | [1] | ||||
Intangible assets, net | 323,000 | [1] | 323,000 | [1] | 328,000 | [1] | ||||
Patents [Member]
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Schedule of components of intangible assets | ||||||||||
Gross | 8,541,000 | [1] | 8,541,000 | [1] | 8,113,000 | [1] | ||||
Accumulated Amortization | (4,097,000) | [1] | (4,097,000) | [1] | (3,847,000) | [1] | ||||
Intangible assets, net | 4,444,000 | [1] | 4,444,000 | [1] | 4,266,000 | [1] | ||||
Number of Disposed Intangible Assets | 3 | 11 | ||||||||
Trademarks [Member]
|
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Schedule of components of intangible assets | ||||||||||
Number of Disposed Intangible Assets | 1 | |||||||||
Trademarks and Trade Names [Member]
|
||||||||||
Schedule of components of intangible assets | ||||||||||
Gross | 2,840,000 | [1] | 2,840,000 | [1] | 2,841,000 | [1] | ||||
Accumulated Amortization | (1,268,000) | [1] | (1,268,000) | [1] | (1,127,000) | [1] | ||||
Intangible assets, net | 1,572,000 | [1] | 1,572,000 | [1] | 1,714,000 | [1] | ||||
Developed and Core Technology [Member]
|
||||||||||
Schedule of components of intangible assets | ||||||||||
Gross | 3,505,000 | [1] | 3,505,000 | [1] | 3,507,000 | [1] | ||||
Accumulated Amortization | (1,022,000) | [1] | (1,022,000) | [1] | (906,000) | [1] | ||||
Intangible assets, net | 2,483,000 | [1] | 2,483,000 | [1] | 2,601,000 | [1] | ||||
Capitalized Software Development Costs [Member]
|
||||||||||
Schedule of components of intangible assets | ||||||||||
Gross | 327,000 | [1] | 327,000 | [1] | 1,276,000 | [1] | ||||
Accumulated Amortization | (119,000) | [1] | (119,000) | [1] | (913,000) | [1] | ||||
Intangible assets, net | 208,000 | [1] | 208,000 | [1] | 363,000 | [1] | ||||
Customer Relationships [Member]
|
||||||||||
Schedule of components of intangible assets | ||||||||||
Gross | 26,400,000 | [1] | 26,400,000 | [1] | 26,415,000 | [1] | ||||
Accumulated Amortization | (7,118,000) | [1] | (7,118,000) | [1] | (5,852,000) | [1] | ||||
Intangible assets, net | 19,282,000 | [1] | 19,282,000 | [1] | 20,563,000 | [1] | ||||
Cost of Sales [Member]
|
||||||||||
Schedule of components of intangible assets | ||||||||||
Amortization expense | 51,000 | 76,000 | 143,000 | 157,000 | ||||||
Selling, General and Administrative Expenses [Member]
|
||||||||||
Schedule of components of intangible assets | ||||||||||
Amortization expense | $ 973,000 | $ 962,000 | $ 1,945,000 | $ 1,920,000 | ||||||
|
Treasury Stock (Details) (USD $)
In Thousands, except Share data, unless otherwise specified |
6 Months Ended | |
---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Equity, Class of Treasury Stock [Line Items] | ||
Shares repurchased | 117,666 | 27,980 |
Cost of shares repurchased | $ 2,435 | $ 486 |
Shares available for repurchase | 968,905 | |
Outside Directors [Member]
|
||
Equity, Class of Treasury Stock [Line Items] | ||
Treasury Stock Reissued (shares) | 15,000 | 22,500 |
Accounts Receivable, Net and Revenue Concentrations (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Schedule of Accounts Receivable | ||
Trade receivables, gross | $ 87,664 | $ 90,056 |
Allowance for doubtful accounts | (325) | (322) |
Allowance for sales returns | (588) | (996) |
Trade receivables, net | 86,751 | 88,738 |
Other receivables | 2,681 | 2,310 |
Accounts receivable, net | $ 89,432 | $ 91,048 |
Goodwill and Intangible Assets, Net (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | Goodwill and changes in the carrying amount of goodwill were as follows:
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Schedule of Components of Intangible Assets | The components of intangible assets, net were as follows:
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Schedule of Allocation of Amortization Expense | Amortization expense by income statement caption was as follows:
|
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Schedule of Estimated Future Amortization Expense | Estimated future amortization expense related to our intangible assets at June 30, 2013, is as follows:
|
Inventories, Net and Significant Suppliers (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
|
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Inventories, Net and Significant Suppliers [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventories, Net | Inventories, net were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Reserve for Excess and Obsolete Inventory | Changes in the reserve for excess and obsolete inventory were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Purchases from Significant Suppliers to Inventory | We had purchases from the following significant suppliers that totaled more than 10% of our total inventory purchases as follows:
|
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Schedule of Related Party Transactions | Inventory purchases from this vendor were as follows:
The total accounts payable to this vendor were the following:
|
Inventories, Net and Significant Suppliers - Related Party Vendor (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
Dec. 31, 2012
|
|
Related Party Transaction [Line Items] | |||||
Document Period End Date | Jun. 30, 2013 | ||||
Related Party Vendor [Member]
|
|||||
Related Party Transaction [Line Items] | |||||
Ownership Percentage in Third Party by Executive | 40.00% | ||||
Inventory Purchases | $ 2,469 | $ 2,152 | $ 4,685 | $ 3,507 | |
% of Total Inventory Purchases | 3.00% | 3.80% | 3.20% | 3.30% | |
Accounts Payable | $ 1,476 | $ 1,476 | $ 1,815 | ||
% of Accounts Payable | 2.20% | 2.20% | 3.00% |
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