XML 34 R21.htm IDEA: XBRL DOCUMENT v3.3.1.900
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Summary of computation of basic and diluted net income (loss) per share
The following table presents the computation of basic and diluted net income per share for the periods indicated (in thousands, except per share amounts):
 
 
Year Ended December 31,
EPS Attributable to Common Shareholders
2015
 
2014
 
2013
Net income from continuing operations
$
257,305

 
$
12,024

 
$
8,832

Discontinued operations
—

 
—

 
2,588

Net income
$
257,305

 
$
12,024

 
$
11,420

Shares used to compute basic income per share
19,790

 
20,419

 
20,312

Dilutive potential common shares:
 
 
 
 
 
Restricted stock
56

 
36

 
80

Stock options
882

 
978

 
353

2019 Convertible Senior Notes
499

 
—

 
—

Shares used to compute diluted income per share
21,228

 
21,433

 
20,745

Basic per share amounts:
 
 
 
 
 
Income from continuing operations
$
13.00

 
$
0.59

 
$
0.43

Discontinued operations
—

 
—

 
0.13

Net income
$
13.00

 
$
0.59

 
$
0.56

 
 
 
 
 
 
Diluted per share amounts:
 
 
 
 
 
Income from continuing operations
$
12.12

 
$
0.56

 
$
0.43

Discontinued operations
—

 
—

 
0.12

Net income
$
12.12

 
$
0.56

 
$
0.55
Summary of investment categories
The following table summarizes the various investment categories at December 31, 2015 and 2014 (in thousands):

 
Cost
 
Gross unrealized
gains
 
Gross unrealized
losses
 
Estimated
fair value
December 31, 2015
 
 
 
 
 
 
 
Short-term investments
 
 
 
 
 
 
 
     Bank deposits
43,043

 
—

 
(4
)
 
43,039

     Corporate bonds
41,238

 
—

 
(35
)
 
41,203

     Commercial paper
1,747

 
—

 
—

 
1,747

     Asset backed securities
10,020

 
—

 
(5
)
 
10,015

     Corporate equity securities
1,843

 
4,944

 
—

 
6,787

 
$
97,891

 
$
4,944

 
$
(44
)
 
$
102,791

December 31, 2014
 
 
 
 
 
 
 
Short-term investments (Corporate equity securities)
2,179

 
4,954

 
$
—

 
$
7,133

Certificates of deposit-restricted
1,261

 
—

 
—

 
1,261

 
$
3,440

 
$
4,954

 
$
—

 
$
8,394
Schedule of major customers
A relatively small number of partners accounts for a significant percentage of our revenue. Revenue from significant partners, which is defined as 10% or more of our total revenue, was as follows:
 
December 31,
 
2015
 
2014
 
2013
Partner A
27
%
 
37
%
 
33
%
Partner B
23
%
 
31
%
 
28
%
Partner C
18
%
 
10
%
 
14
%
Summary of goodwill and other identifiable intangible assets
Goodwill and other identifiable intangible assets consist of the following (in thousands):
 
 
December 31,
 
2015
 
2014
Indefinite lived intangible assets
 
 
 
     IPR&D
$
12,556

 
$
12,556

     Goodwill
12,238

 
12,238

Definite lived intangible assets
 
 
 
     Complete technology
15,267

 
15,267

          Less: Accumulated amortization
(3,762
)
 
(2,999
)
     Trade name
2,642

 
2,642

          Less: Accumulated amortization
(652
)
 
(519
)
     Customer relationships
29,600

 
29,600

          Less: Accumulated amortization
(7,304
)
 
(5,824
)
Total goodwill and other identifiable intangible assets, net
$
60,585

 
$
62,961
Summary of property and equipment
Property and equipment is stated at cost and consists of the following (in thousands):
 
 
December 31,
 
2015
 
2014
Lab and office equipment
$
2,248

 
$
2,232

Leasehold improvements
273

 
273

Computer equipment and software
632

 
624

 
3,153

 
3,129

Less accumulated depreciation and amortization
(2,781
)
 
(2,643
)
 
$
372

 
$
486
Stock option weighted average assumptions
The fair-value for options that were awarded to employees and directors was estimated at the date of grant using the Black-Scholes option valuation model with the following weighted average assumptions:
 
 
Year Ended December 31,
 
2015
 
2014
 
2013
 
Risk-free interest rate
1.7%-2.0%
 
1.9%
 
1.13%-1.82%
 
Expected volatility
50%-58%
 
62%-69%
 
69%
 
Expected term
6.5 years
 
6 years
 
6 years
 
Forfeiture rate
8.52%
 
8.6%-9.7%
 
8.4%-9.8%
 
Schedule for accounting for share-based compensation
The following table summarizes stock-based compensation expense recorded as components of research and development expenses and general and administrative expenses for the periods indicated (in thousands):

 
December 31,
 
2015
 
2014
 
2013
Stock-based compensation expense as a component of:
 
 
 
 
 
Research and development expenses
$
4,080

 
$
3,595

 
$
1,705

General and administrative expenses
8,378

 
7,675

 
3,961

 
$
12,458

 
$
11,270

 
$
5,666