Organization and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2013

Summary of Changes in Estimated Product Warranty Liabilities

Changes in the Company’s estimated product warranty liabilities are as follows (in thousands):

Warranty Costs


	2013			2012			2011
Balance, January 1	$	484		$	427		$	646
Utilization of accrual		(530	)		(470	)		(529	)
Warranty expense		1,001			527			310

Balance, December 31	$	955		$	484		$	427

Net Sales by Geographic Area

For the three years ended December 31, 2013, 2012 and 2011, net sales by geographic area were as follows (in thousands):


	Year Ended December 31,
	2013				2012				2011
United States	$	115,674	84	%	$	93,427	81	%	$	72,261	80	%
Other Countries		22,157	16			21,326	19			17,767	20

Total	$	137,831	100	%	$	114,753	100	%	$	90,028	100	%

Assumptions Used and The Resulting Estimates of Weighted Average Fair Value Per Share of Options Granted

The assumptions used for the year ended December 31, 2011 and the resulting estimates of weighted-average fair value per share of options granted during that period, excluding the effects of a prior exchange program, are as follows:


	2011
Weighted average / range of volatility		56	%
Risk-free interest rate		1.6
Dividend rate		—
Expected life of options		4.5 years
Weighted average fair value of options granted	$	2.16

Weighted Average Number of Shares Outstanding and Income Per Share

The calculation of the weighted average number of shares outstanding and earnings per share are as follows (in thousands except per share data):


	For the Year Ended December 31,
	2013		2012		2011
Numerator for basic and diluted earnings per share:
Net income (loss)	$	18,244	$	14,738	$	(7,040	)

Denominator:
Weighted average shares outstanding—basic		51,880		53,827		59,436
Dilutive effect of stock-based awards		2,272		896		—

Diluted weighted average shares outstanding		54,152		54,723		59,436

Anti-dilutive stock-based awards excluded⁽¹⁾		507		3,205		6,972
Net income (loss) per common share:
Basic	$	0.35	$	0.27	$	(0.12	)
Diluted		0.34		0.27		(0.12	)

(1)

For the year ended December 31, 2011, all outstanding awards were excluded from the computation of diluted net loss per common share because inclusion would be anti-dilutive, reducing the net loss per share. These figures also include performance-based options and RSUs for which the performance criteria have not been met.