Quarterly report pursuant to Section 13 or 15(d)

Financial Instruments Financial Instruments (Tables)

v3.4.0.3
Financial Instruments Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2016
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]
The following table presents a summary of the Company’s financial instruments that are measured on a recurring basis:
 
 
 
Fair Value Measurements at March 31, 2016
 
Balance at March 31, 2016
 
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
(in thousands)
Assets
 
 
 
 
 
 
 
Money market funds
$
29,828

 
$
29,828

 
$
—

 
$
—

Government debt securities
35,338

 
—

 
35,338

 
—

Corporate debt securities
54,654

 
—

 
54,654

 
—

 
$
119,820

 
$
29,828

 
$
89,992

 
$
—

Liabilities
 
 
 
 
 
 
 
Contingent consideration
$
241

 
$
—

 
$
—

 
$
241

 
$
241

 
$
—

 
$
—

 
$
241

 
 
 
Fair Value Measurements at December 31, 2015
 
Balance at December 31, 2015
 
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
(in thousands)
Assets
 
 
 
 
 
 
 
Money market funds
$
17,144

 
$
17,144

 
$
—

 
$
—

Government debt securities
17,273

 
—

 
17,273

 
—

Corporate debt securities
45,269

 
—

 
45,269

 
—

 
$
79,686

 
$
17,144

 
$
62,542

 
$
—

Liabilities
 
 
 
 
 
 
 
Contingent consideration
$
395

 
$
—

 
$
—

 
$
395

 
$
395

 
$
—

 
$
—

 
$
395

Available-for-sale Securities [Table Text Block]
The composition of financial instruments is as follows:
 
March 31, 2016
Amortized
Cost
 
Gross Unrealized
 
Fair
Value
Gains
 
Losses
 
 
(in thousands)
Assets
 
 
 
 
 
 
 
Money market funds
$
29,828

 
$
—

 
$
—

 
$
29,828

Government debt securities
35,332

 
9

 
(3
)
 
35,338

Corporate debt securities
54,649

 
18

 
(13
)
 
54,654

 
119,809

 
27

 
(16
)
 
119,820

Less amounts included in cash and cash equivalents
(29,828
)
 
—

 
—

 
(29,828
)
 
$
89,981

 
$
27

 
$
(16
)
 
$
89,992

 
Fair Value at March 31, 2016
 
(in thousands)
Liabilities
 
Contingent Consideration
$
241

Total
$
241

 
December 31, 2015
Amortized
Cost
 
Gross Unrealized
 
Fair
Value
Gains
 
Losses
 
 
(in thousands)
Assets
 
 
 
 
 
 
 
Money market funds
$
17,144

 
$
—

 
$
—

 
$
17,144

Government debt securities
17,303

 
—

 
(30
)
 
17,273

Corporate debt securities
45,353

 
—

 
(84
)
 
45,269

 
79,800

 
—

 
(114
)
 
79,686

Less amounts included in cash and cash equivalents
(17,144
)
 
—

 
—

 
(17,144
)
 
$
62,656

 
$
—

 
$
(114
)
 
$
62,542


 
Fair Value at December 31, 2015
 
(in thousands)
Liabilities
 
Contingent Consideration
$
395

Total
$
395

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]
The following summarizes the activity in Level 3 financial instruments:
 
Three Months Ended March 31,
 
2016
 
2015
 
(in thousands)
Contingent Consideration (1)
 
 
 
Beginning balance
$
395

 
$
265

Physpeed earn-out payment
(240
)
 
—

(Gain) loss recognized in earnings (2)
86

 
(183
)
Ending balance
$
241

 
$
82

Net gain (loss) for the period included in earnings attributable to contingent consideration held at the end of the period:
$
(86
)
 
$
183

(1)
In connection with the acquisition of Physpeed, the Company recorded contingent consideration based upon the expected achievement of 2016 revenue milestones. Changes to the fair value of contingent consideration due to changes in assumptions used in preparing the valuation model are recorded in selling, general and administrative expense in the statement of operations.
(2)
Changes to the estimated fair value of contingent consideration for the three months ended March 31, 2016 were primarily due to