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Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2014	May 09, 2014
Document Information [Line Items]
Entity Registrant Name	CLEARONE INC
Document Type	10-Q
Document Period End Date	Mar. 31, 2014
Amendment Flag	false
Entity Central Index Key	0000840715
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		9,260,635
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q1

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2014	Dec. 31, 2013
Current assets:
Cash and cash equivalents	$ 7,649	$ 17,192
Marketable securities	4,734	3,200
Receivables, net of allowance for doubtful accounts of $102 and $129, respectively	8,849	9,378
Inventories	12,641	12,278
Deferred income taxes	3,325	3,325
Prepaid expenses and other assets	7,050	2,693
Total current assets	44,248	48,066
Long-term marketable securities	21,645	22,326
Long-term inventories, net	575	551
Property and equipment, net	2,209	1,825
Intangibles, net	6,816	3,710
Goodwill	9,872	3,472
Deferred income taxes	980	1,024
Other assets	91	87
Total assets	86,436	81,061
Current liabilities:
Accounts payable	3,324	2,730
Accrued liabilities	2,627	1,761
Deferred product revenue	4,107	4,158
Total current liabilities	10,058	8,649
Deferred rent	246	286
Other long-term liabilities	2,363	1,791
Total liabilities	12,667	10,726
Shareholders' equity:
Common stock, par value $0.001, 50,000,000 shares authorized, 9,309,529 and 8,986,080 shares issued and outstanding	9	9
Additional paid-in capital	44,182	41,311
Accumulated other comprehensive income	96	23
Retained earnings	29,482	28,992
Total shareholders' equity	73,769	70,335
Total liabilities and shareholders' equity	86,436	81,061
Inventory [Member]
Current assets:
Inventories	11,063	10,758
Distributor Channel Inventory [Member]
Current assets:
Inventories	$ 1,578	$ 1,520

Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Mar. 31, 2014	Dec. 31, 2013
Allowance for doubtful accounts	$ 102	$ 129
Common Stock:
Par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, sharse issued (in shares)	9,309,529	8,986,080
Common stock, shares outstanding (in shares)	9,309,529	8,986,080

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Revenue	$ 12,708	$ 11,293
Cost of goods sold	5,006	4,294
Gross profit	7,702	6,999
Operating expenses:
Sales and marketing	2,736	2,267
Research and product development	2,241	1,866
General and administrative	1,964	1,797
Total operating expenses	6,941	5,930
Operating income	761	1,069
Other income (expense), net	81	(14)
Income before income taxes	842	1,055
Provision for income taxes	352	324
Net income	$ 490	$ 731
Basic earnings per common share	$ 0.05	$ 0.08
Diluted earnings per common share	$ 0.05	$ 0.08
Basic weighted average shares outstanding	9,082,546	9,152,859
Diluted weighted average shares outstanding	9,558,941	9,394,181
Other comprehensive income:
Unrealized gain (loss) on available-for-sale securities, net of tax	$ 96	$ 0
Comprehensive income	$ 586	$ 731

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Cash flows from operating activities:
Net income	$ 490	$ 731
Adjustments to reconcile net income to net cash provided by (used in) operations:
Depreciation and amortization expense	319	323
Amortization of deferred rent	(21)	(15)
Stock-based compensation expense	84	59
Provision for (recoveries of) doubtful accounts, net	(27)	27
Inventory valuation reserve adjustments	416	(34)
Loss on disposal of assets	2	0
Tax benefit from exercise of stock options	(87)	0
Changes in operating assets and liabilities:
Receivables	853	434
Inventories	40	(555)
Deferred income taxes	44	0
Prepaid expenses and other assets	886	(138)
Accounts payable	178	1,410
Accrued liabilities	210	(144)
Income taxes payable	235	(15,066)
Deferred product revenue	(51)	599
Net cash provided by (used in) operating activities	3,571	(12,369)
Cash flows from investing activities:
Payment towards business acquisitions	(13,048)	0
Purchase of property and equipment	(249)	(62)
Purchase of Patents	(90)	0
Purchases of marketable securities	(780)	0
Net cash (used in) investing activities	(14,167)	(62)
Cash flows from financing activities:
Proceeds from the exercise of stock options	1,021	76
Tax benefits from stock options	87	0
Payments of Stock Issuance Costs	(55)	0
Treasury stock purchased	0	(574)
Net cash provided by (used in) financing activities	1,053	(498)
Net (decrease) in cash and cash equivalents	(9,543)	(12,929)
Cash and cash equivalents at the beginning of the period	17,192	55,509
Cash and cash equivalents at the end of the period	7,649	42,580
Supplemental disclosure of cash flow information:
Cash paid for income taxes	29	15,346
Non-cash investing and financing activities:
Business Combination, Consideration Transferred	10,381
Common Stock [Member]
Non-cash investing and financing activities:
Business Combination, Consideration Transferred	$ 1,679	$ 0

Business Description, Basis of Presentation and Significant Accounting Policies Business Description, Basis of Presentation and Significant Accounting Policies

3 Months Ended

Mar. 31, 2014

Accounting Policies [Abstract]

Business Description, Basis of Presentation and Significant Accounting Policies

Business Description:

ClearOne, Inc. and its subsidiaries (collectively, “ClearOne” or the “Company”) are a global company that designs, develops and sells conferencing, collaboration, streaming and digital signage solutions for audio and visual communications. The performance and simplicity of its advanced comprehensive solutions offer unprecedented levels of functionality, reliability and scalability.

Basis of Presentation:

The fiscal year for ClearOne is the 12 months ending on December 31^st. The consolidated financial statements include the accounts of ClearOne and its subsidiaries. All significant inter-company accounts and transactions have been eliminated.

These accompanying interim condensed consolidated financial statements for the three months ended March 31, 2014 and 2013, respectively, have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and are not audited. Certain information and footnote disclosures that are usually included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been either condensed or omitted in accordance with SEC rules and regulations. The accompanying consolidated financial statements contain all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of our financial position as of March 31, 2014 and December 31, 2013, the results of operations for the three months ended March 31, 2014 and 2013, and the statements of cash flows for the three months ended March 31, 2014 and 2013. The results of operations for the three months ended March 31, 2014 and 2013 are not necessarily indicative of the results for a full-year period. These interim condensed consolidated financial statements should be read in conjunction with the financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2013 filed with the SEC.

Significant Accounting Policies:

The significant accounting policies were described in Note 1 to the audited consolidated financial statements included in the Company’s annual report on Form 10-K for the year ended December 31, 2013. There have been no changes to these policies during the three months ended March 31, 2014 that are of significance or potential significance to the Company.

Warranty Costs – The Company accrues for warranty costs based on estimated warranty return rates and estimated costs to repair. Factors that affect the Company’s warranty liability include the number of units sold, historical and anticipated rates of warranty returns, and repair cost. The Company reviews the adequacy of its recorded warranty accrual on a quarterly basis.

The details of changes in the Company’s warranty accrual are as follows:



	March 31, 2014			December 31, 2013
Balance at the beginning of year	$	338		$	385
Warranty accruals/additions	94			433
Warranty usage	(106		)	(480		)
Balance at end of period	$	326		$	338

Earnings Per Share – The following table sets forth the computation of basic and diluted earnings per common share:



	Three months ended March 31,
	2014		2013
Numerator:
Net income	$	490	$	731
Denominator:
Basic weighted average shares outstanding	9,082,546		9,152,859
Dilutive common stock equivalents using treasury stock method	476,395		241,322
Diluted weighted average shares outstanding	9,558,941		9,394,181

Basic earnings per common share	$	0.05	$	0.08
Diluted earnings per common share	$	0.05	$	0.08

Weighted average options outstanding	1,044,208		1,128,483
Anti-dilutive options not included in the computations	116,000		208,957

Business Combination Business Combination

3 Months Ended

Mar. 31, 2014

Business Combinations [Abstract]

Business Combination

On March 7, 2014, the Company completed the acquisition of Sabine, Inc. ("Sabine") through a stock purchase agreement ("SPA"). Sabine manufactures, designs, and sells Sacom professional wireless microphone systems for live and installed audio. It also makes FBX Feedback Exterminator for reliable automatic feedback control. With the addition of Sabine, ClearOne will have reliable and exclusive access to the wireless microphones that are a critical component of ClearOne’s complete microphone portfolio.

Pursuant to the SPA, the Company (i) paid initial consideration of $8,129 in cash, which is subject to a final working capital adjustment, (ii) accrued for possible additional earn-out payments over the next three years, estimated to be $573, and (iii) issued 150,000 shares of restricted common stock of the Company, valued at $1,679 (determined on the basis of the closing market price of the Company's stock on the acquisition date). The purchase price was paid out of cash on hand. The SPA contains representations, warranties and indemnifications customary for a transaction of this type.

The estimated fair values of assets acquired and liabilities assumed are provisional and are based on the information that was available as of the acquisition date to estimate the fair value of assets acquired and liabilities assumed. The Company believes that such information provides a reasonable basis for estimating the fair values of assets acquired and liabilities assumed, but the Company is waiting for additional information necessary to finalize those fair values. The measurement period for purchase price allocation ends as soon as information on the facts and circumstances becomes available, but will not exceed twelve months from the date of acquisition. Adjustments in the purchase price allocation may require a recasting of the amounts allocated to intangible assets and possible allocation to goodwill, retroactive to the period in which the acquisition occurred. Therefore, the provisional measurements of fair value reflected are subject to change and such changes could be significant.

The following table summarizes the consideration paid for the acquisition:



	Consideration
Cash	$	8,129
Common stock	1,679
Contingent consideration	573
Total	$	10,381

The fair value of identified assets and liabilities acquired was as follows:



	Fair value
Cash	$	125
Accounts receivable	298
Inventories	844
Prepaid and other	116
Intangibles	3,180
Property, plant and equipment	292
Goodwill	6,399
Trade accounts payable	(416		)
Accrued liabilities	(402		)
Stock registration costs	(55		)
Total	$	10,381

The fair value of accounts receivable acquired is $298 which is net of an allowance for doubtful accounts of $2.

The goodwill of $6,399 related to the acquisition of of Sabine is composed of expected synergies in utilizing Sabine technology in ClearOne product offerings, reduction in future combined research and development expenses, and intangible assets including acquired workforce that do not qualify for separate recognition. The goodwill balance of $6,399 related to the acquisition of Sabine is deductible for tax purposes.

The Company incurred $341 towards acquisition related expenses, all of which are categorized under General and administrative expenses in the Consolidated Statement of Operations for the period ended March 31, 2014.

Supplemental Pro Forma Information:

1) Revenue and net loss from the Sabine business from March 8, 2014 to March 31, 2014 was $84 and $163 respectively.

2) Revenue and earnings of the combined entity as though the business combination occurred as of January 1, 2013 were as follows:



	Three months ended March 31,
	2014		2013
Revenue	$	12,977	$	12,163
Earnings	249		750
Basic and diluted earnings per common share	$	0.03	$	0.08

3) There were no material, nonrecurring pro forma adjustments directly attributable to the acquisition included in this Supplemental Pro Forma Information.

See Note 10. Subsequent Events for information regarding the Spontania acquisition.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

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+ Details

Marketable Securities

3 Months Ended

Mar. 31, 2014

Investments, Debt and Equity Securities [Abstract]

Marketable Securities

The Company has classified its marketable securities as available-for-sale securities. These securities are carried at estimated fair value with unrealized holding gains and losses included in accumulated other comprehensive income/loss in stockholders' equity until realized. Gains and losses on marketable security transactions are reported on the specific-identification method. Dividend and interest income are recognized when earned.

The amortized cost, gross unrealized holding gains, gross unrealized holding losses, and fair value for available-for-sale securities by major security type and class of security at March 31, 2014 and December 31, 2013 were as follows:



			Amortized cost		Gross unrealized holding gains		Gross unrealized holding losses			Estimated fair value
March 31, 2014
	Available-for-sale securities:
		Corporate bonds and notes	$	19,605	$	149	$	(17	)	$	19,737
		Municipal bonds	6,620		29		(7		)	6,642
	Total available-for-sale securities		$	26,225	$	178	$	(24	)	$	26,379



			Amortized cost		Gross unrealized holding gains		Gross unrealized holding losses			Estimated fair value
December 31, 2013
	Available-for-sale securities:
		Corporate bonds and notes	$	18,832	$	68	$	(43	)	$	18,857
		Municipal bonds	6,658		22		(11		)	6,669
	Total available-for-sale securities		$	25,490	$	90	$	(54	)	$	25,526

Maturities of marketable securities classified as available-for-sale securities were as follows at March 31, 2014:



		Amortized cost		Estimated fair value
March 31, 2014
	Due within one year	$	4,724	$	4,734
	Due after one year through five years	19,927		20,036
	Due after five years through ten years	1,574		1,609
	Total available-for-sale securities	$	26,225	$	26,379

- Definition

The entire disclosure for investments in certain debt and equity securities.

+ References + Details

Intangible Assets

3 Months Ended

Mar. 31, 2014

Business Combinations [Abstract]

Intangible Assets

Intangible assets as of March 31, 2014 and December 31, 2013 consisted of the following:



	Estimated useful lives	March 31, 2014			December 31, 2013
Tradename	7 years	$	435		$	435
Patents and technological know-how	10 years	5,310			2,070
Proprietary software	3 to 15 years	2,961			2,961
Other	5 years	238			208
		8,944			5,674
Accumulated amortization		(2,128		)	(1,964		)
		$	6,816		$	3,710

The amortization of intangible assets for the three months ended March 31, 2014 and March 31, 2013 was as follows:



	Three months ended March 31,
	2014		2013
Amortization of intangible assets	$	164	$	143

The estimated future amortization expense of intangible assets is as follows:



Years ending December 31,
2014 (remainder)	$	665
2015	847
2016	810
2017	721
2018	700
Thereafter	3,073
	$	6,816

Inventories

3 Months Ended

Mar. 31, 2014

Inventory Disclosure [Abstract]

Inventories

Inventories, net of reserves, as of March 31, 2014 and December 31, 2013 consisted of the following:



	March 31, 2014		December 31, 2013
Current:
Raw materials	$	1,959	$	1,362
Finished goods	10,682		10,916
	$	12,641	$	12,278
Long-term:
Raw materials	$	256	$	227
Finished goods	319		324
	$	575	$	551

Long-term inventory represents inventory held in excess of our current (next 12 months) requirements based on our recent sales and forecasted level of sales. We expect to sell the above inventory, net of reserves, at or above the stated cost and believe that no loss will be incurred on its sale.

Current finished goods include consigned inventory in the amounts of approximately $1,578 and $1,520 as of March 31, 2014 and December 31, 2013, respectively. Consigned inventory represents inventory at distributors and other customers where revenue recognition criteria have not yet been achieved.

The following table summarizes the losses incurred on valuation of inventory at lower of cost or market value and write-off of obsolete inventory during the three months ended March 31, 2014 and 2013, respectively.



	Three months ended March 31,
	2014		2013
Net loss (gain) on valuation of inventory and write-off of obsolete inventory	$	416	$	(34	)

Share-Based Payments

3 Months Ended

Mar. 31, 2014

Shareholders' Equity and Share-based Payments [Abstract]

Share-Based Compensation

Share-based Compensation

Share-based compensation expense has been recorded as follows:



	Three months ended March 31,
	2014		2013
Cost of goods sold	$	2	$	2
Sales and marketing	20		15
Research and product development	11		11
General and administrative	51		31
	$	84	$	59

As of March 31, 2014, the total remaining unrecognized compensation cost related to non-vested stock options, net of forfeitures, was approximately $641, which will be recognized over a weighted average period of 2.31 years.

Shareholders' Equity

3 Months Ended

Mar. 31, 2014

Stockholders' Equity Note [Abstract]

Shareholders' Equity

Shareholders’ Equity

The following table summarizes the change in shareholders’ equity during the three months ended March 31, 2014 and 2013, respectively:



	Three months ended March 31,
	2014		2013
Balance at the beginning of the period	$	70,335	$	66,668
Net income during the period	490		731
Treasury stock purchased	—		(574		)
Share-based compensation	84		59
Tax benefit - stock option exercise	87		—
Exercise of stock options	1,021		76
Stock issued for acquisitions	1,679		—
Unrealized gain or loss on investments, net of tax	73		—
Balance at end of the period	$	73,769	$	66,960

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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-Number 210
-Section 08
-Paragraph d
-Article 4

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 29, 30, 31
-Article 5

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section E

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Article 4

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section C

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

+ Details

Fair Value Measurements

3 Months Ended

Mar. 31, 2014

Fair Value Disclosures [Abstract]

Fair Value Measurements

The fair value of the Company's financial instruments reflects the amounts that the Company estimates it will receive in connection with the sale of an asset or pay in connection with the transfer of a liability in an orderly transaction between market participants at the measurement date (exit price). The fair value hierarchy prioritizes the use of inputs used in valuation techniques into the following three levels:

Level 1 - Quoted prices in active markets for identical assets and liabilities.

Level 2 - Observable inputs other than quoted prices in active markets for identical assets and liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. This category generally includes U.S. Government and agency securities; municipal securities; mutual funds and securities sold and not yet settled.

Level 3 - Unobservable inputs.

The substantial majority of the Company’s financial instruments are valued using quoted prices in active markets or based on other observable inputs. The following table sets forth the fair value of the financial instruments re-measured by the Company as of March 31, 2014 and December 31, 2013:



		Level 1		Level 2		Level 3		Total
March 31, 2014
Corporate bonds and notes		$	—	$	19,737	$	—	$	19,737
Municipal bonds		—		6,642		—		6,642
	Total	$	—	$	26,379	$	—	$	26,379



		Level 1		Level 2		Level 3		Total
December 31, 2013
Corporate bonds and notes		$	—	$	18,857	$	—	$	18,857
Municipal bonds		—		6,669		—		6,669
	Total	$	—	$	25,526	$	—	$	25,526

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2014
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company's forecasted effective tax rate at March 31, 2014 is 35.0%, a 1.7% increase from the 33.3% effective tax rate recorded at December 31, 2013. The forecasted effective tax rate of 35.0% excludes jurisdictions for which no benefit from forecasted current year losses is anticipated. Including losses from such jurisdictions results in a forecasted effective tax rate of 43.2%. Our forecasted effective tax rate could fluctuate significantly on a quarterly basis and could change, to the extent that earnings in countries with tax rates that differ from that of the U.S. differ, from amounts anticipated at March 31, 2014. After discrete benefit of $82, the effective tax rate for the quarter ended March 31, 2014 is 41.9%. The discrete benefit is primarily attributable to tax benefits of share-based compensation.

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2014
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events As announced December 20, 2013 ClearOne, Inc. entered into an agreement to acquire the Spontania business of Spain-based Dialcom Networks, S.L., which was a software-based video collaboration product line. The Spontania purchase closed on April 1, 2014. The aggregate purchase price under the terms of the transaction was approximately €3.66 million in cash (approximately US $5.0 million), after certain closing adjustments. ClearOne did not assume any debt or cash. The cash purchase price was paid out of cash on hand.

Summary of Significant Accounting Policies (Policies)	3 Months Ended
Summary of Significant Accounting Policies (Policies)	Mar. 31, 2014
Accounting Policies [Abstract]
Warranty Costs	Warranty Costs – The Company accrues for warranty costs based on estimated warranty return rates and estimated costs to repair. Factors that affect the Company’s warranty liability include the number of units sold, historical and anticipated rates of warranty returns, and repair cost. The Company reviews the adequacy of its recorded warranty accrual on a quarterly basis.

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2014

Accounting Policies [Abstract]

Schedule of Warranty Accrual

The details of changes in the Company’s warranty accrual are as follows:



	March 31, 2014			December 31, 2013
Balance at the beginning of year	$	338		$	385
Warranty accruals/additions	94			433
Warranty usage	(106		)	(480		)
Balance at end of period	$	326		$	338

Schedule of Earnings Per Share, Basic and Diluted

Earnings Per Share – The following table sets forth the computation of basic and diluted earnings per common share:



	Three months ended March 31,
	2014		2013
Numerator:
Net income	$	490	$	731
Denominator:
Basic weighted average shares outstanding	9,082,546		9,152,859
Dilutive common stock equivalents using treasury stock method	476,395		241,322
Diluted weighted average shares outstanding	9,558,941		9,394,181

Basic earnings per common share	$	0.05	$	0.08
Diluted earnings per common share	$	0.05	$	0.08

Weighted average options outstanding	1,044,208		1,128,483
Anti-dilutive options not included in the computations	116,000		208,957

Business Combination (Tables)

3 Months Ended

Mar. 31, 2014

Business Combinations [Abstract]

Schedule of Consideration Paid for the Acquisition

The following table summarizes the consideration paid for the acquisition:



	Consideration
Cash	$	8,129
Common stock	1,679
Contingent consideration	573
Total	$	10,381

Schedule of Fair Value of Identified Assets and Liabilities Acquired

The fair value of identified assets and liabilities acquired was as follows:



	Fair value
Cash	$	125
Accounts receivable	298
Inventories	844
Prepaid and other	116
Intangibles	3,180
Property, plant and equipment	292
Goodwill	6,399
Trade accounts payable	(416		)
Accrued liabilities	(402		)
Stock registration costs	(55		)
Total	$	10,381

Schedule of Pro Forma Revenue and Earnings

Revenue and earnings of the combined entity as though the business combination occurred as of January 1, 2013 were as follows:



	Three months ended March 31,
	2014		2013
Revenue	$	12,977	$	12,163
Earnings	249		750
Basic and diluted earnings per common share	$	0.03	$	0.08

Marketable Securities (Tables)

3 Months Ended

Mar. 31, 2014

Investments, Debt and Equity Securities [Abstract]

Schedule of Available-for-sale Securities Reconciliation



			Amortized cost		Gross unrealized holding gains		Gross unrealized holding losses			Estimated fair value
March 31, 2014
	Available-for-sale securities:
		Corporate bonds and notes	$	19,605	$	149	$	(17	)	$	19,737
		Municipal bonds	6,620		29		(7		)	6,642
	Total available-for-sale securities		$	26,225	$	178	$	(24	)	$	26,379



			Amortized cost		Gross unrealized holding gains		Gross unrealized holding losses			Estimated fair value
December 31, 2013
	Available-for-sale securities:
		Corporate bonds and notes	$	18,832	$	68	$	(43	)	$	18,857
		Municipal bonds	6,658		22		(11		)	6,669
	Total available-for-sale securities		$	25,490	$	90	$	(54	)	$	25,526

Available-for-sale Securities

Maturities of marketable securities classified as available-for-sale securities were as follows at March 31, 2014:



		Amortized cost		Estimated fair value
March 31, 2014
	Due within one year	$	4,724	$	4,734
	Due after one year through five years	19,927		20,036
	Due after five years through ten years	1,574		1,609
	Total available-for-sale securities	$	26,225	$	26,379

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

+ References + Details

Intangible Assets Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets

Intangible assets as of March 31, 2014 and December 31, 2013 consisted of the following:



	Estimated useful lives	March 31, 2014			December 31, 2013
Tradename	7 years	$	435		$	435
Patents and technological know-how	10 years	5,310			2,070
Proprietary software	3 to 15 years	2,961			2,961
Other	5 years	238			208
		8,944			5,674
Accumulated amortization		(2,128		)	(1,964		)
		$	6,816		$	3,710

Schedule of Estimated Future Amortization Expense of Intangible Assets

The estimated future amortization expense of intangible assets is as follows:



Years ending December 31,
2014 (remainder)	$	665
2015	847
2016	810
2017	721
2018	700
Thereafter	3,073
	$	6,816

Inventories (Tables)

3 Months Ended

Mar. 31, 2014

Inventory Disclosure [Abstract]

Schedule of inventory, net of reserves

Inventories, net of reserves, as of March 31, 2014 and December 31, 2013 consisted of the following:



	March 31, 2014		December 31, 2013
Current:
Raw materials	$	1,959	$	1,362
Finished goods	10,682		10,916
	$	12,641	$	12,278
Long-term:
Raw materials	$	256	$	227
Finished goods	319		324
	$	575	$	551

Schedule of Non-Current Inventory Valuation Losses



	Three months ended March 31,
	2014		2013
Net loss (gain) on valuation of inventory and write-off of obsolete inventory	$	416	$	(34	)

Share-Based Payments (Tables)

3 Months Ended

Mar. 31, 2014

Shareholders' Equity and Share-based Payments [Abstract]

Schedule of share-based compensation expense

Share-based compensation expense has been recorded as follows:



	Three months ended March 31,
	2014		2013
Cost of goods sold	$	2	$	2
Sales and marketing	20		15
Research and product development	11		11
General and administrative	51		31
	$	84	$	59

Shareholders' Equity (Tables)

3 Months Ended

Mar. 31, 2014

Stockholders' Equity Note [Abstract]

Schedule of Shareholders' Equity

The following table summarizes the change in shareholders’ equity during the three months ended March 31, 2014 and 2013, respectively:



	Three months ended March 31,
	2014		2013
Balance at the beginning of the period	$	70,335	$	66,668
Net income during the period	490		731
Treasury stock purchased	—		(574		)
Share-based compensation	84		59
Tax benefit - stock option exercise	87		—
Exercise of stock options	1,021		76
Stock issued for acquisitions	1,679		—
Unrealized gain or loss on investments, net of tax	73		—
Balance at end of the period	$	73,769	$	66,960

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2014

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table sets forth the fair value of the financial instruments re-measured by the Company as of March 31, 2014 and December 31, 2013:



		Level 1		Level 2		Level 3		Total
March 31, 2014
Corporate bonds and notes		$	—	$	19,737	$	—	$	19,737
Municipal bonds		—		6,642		—		6,642
	Total	$	—	$	26,379	$	—	$	26,379



		Level 1		Level 2		Level 3		Total
December 31, 2013
Corporate bonds and notes		$	—	$	18,857	$	—	$	18,857
Municipal bonds		—		6,669		—		6,669
	Total	$	—	$	25,526	$	—	$	25,526

Business Description, Basis of Presentation and Significant Accounting Policies Summary of Significant Accounting Policies - Warranties (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance at the beginning of year	$ 338	$ 385
Warranty accruals/additions	94	433
Warranty usage	(106)	(480)
Balance at end of period	$ 326	$ 338

Summary of Significant Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Numerator:
Net income	$ 490	$ 731
Denominator:
Basic weighted average shares outstanding	9,082,546	9,152,859
Dilutive common stock equivalents using treasury stock method	476,395	241,322
Diluted weighted average shares outstanding	9,558,941	9,394,181
Basic earnings per common share	$ 0.05	$ 0.08
Diluted earnings per common share	$ 0.05	$ 0.08
Weighted average options outstanding	1,044,208	1,128,483
Anti-dilutive options not included in the computations	116,000	208,957

Business Combination Business Combination Consideration Transferred (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2014 USD ($)
Noncash or Part Noncash Acquisitions [Line Items]
Business Combination, Consideration Transferred	$ 10,381
Sabine, Inc. [Member]
Noncash or Part Noncash Acquisitions [Line Items]
Business Combination, Consideration Transferred	8,129
Sabine, Inc. [Member] \| Earn-out Payment [Member]
Noncash or Part Noncash Acquisitions [Line Items]
Business Combination, Consideration Transferred	$ 573

Business Combination Schedule of Fair Value of Identified Assets and Liabilities Acquired (Details) - USD ($) $ in Thousands	Mar. 31, 2014	Mar. 07, 2014	Dec. 31, 2013
Business Acquisition [Line Items]
Goodwill	$ 9,872		$ 3,472
Sabine, Inc. [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents		$ 125
Accounts receivable		298
Inventories		844
Prepaid and other		116
Intangibles		3,180
Property, plant and equipment		292
Goodwill		6,399
Trade accounts payable		(416)
Accrued liabilities		(402)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other		(55)
Total Assets, Goodwill, and Liabilities		$ 10,381

Business Combination Schedule of Pro Forma Revenue and Earnings (Details) - Sabine, Inc. [Member] - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Business Acquisition [Line Items]
Business Acquisition, Pro Forma Revenue	$ 12,977	$ 12,163
Business Acquisition, Pro Forma Net Income (Loss)	$ 249	$ 750
Business Acquisition, Pro Forma Earnings Per Share, Basic and Diluted	$ 0.03	$ 0.08

Business Combination Narrative (Details) - USD ($) $ in Thousands		1 Months Ended	3 Months Ended
	Mar. 07, 2014	Mar. 31, 2014	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Business Acquisition [Line Items]
Business Combination, Consideration Transferred			$ 10,381
Goodwill		$ 9,872	9,872		$ 3,472
Net income			490	$ 731
Sabine, Inc. [Member]
Business Acquisition [Line Items]
Accounts receivable	$ 298
Allowance for doubtful accounts	2
Business Combination, Consideration Transferred			8,129
Goodwill	$ 6,399
Earn-out Payment [Member] \| Sabine, Inc. [Member]
Business Acquisition [Line Items]
Business Combination, Consideration Transferred			573
Restricted Stock [Member] \| Sabine, Inc. [Member]
Business Acquisition [Line Items]
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares	150,000
Common stock issued	$ 1,679
Sabine, Inc. [Member]
Business Acquisition [Line Items]
Revenues		84
Net income		$ (163)
General and Administrative Expense [Member]
Business Acquisition [Line Items]
Business Combination, Acquisition Related Costs			$ 341

Marketable Securities (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
Marketable Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2014	Dec. 31, 2013
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	$ 26,225	$ 25,490
Gross unrealized holding gains	178	90
Gross unrealized holding losses	(24)	(54)
Estimated fair value	26,379	25,526
Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	19,605	18,832
Gross unrealized holding gains	149	68
Gross unrealized holding losses	(17)	(43)
Estimated fair value	19,737	18,857
Municipal Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	6,620	6,658
Gross unrealized holding gains	29	22
Gross unrealized holding losses	(7)	(11)
Estimated fair value	$ 6,642	$ 6,669

Marketable Securities - Available-for-sale Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2014	Dec. 31, 2013
Investments, Debt and Equity Securities [Abstract]
Due within one year, Amortized Cost	$ 4,724
Due within one year, Estimated fair value	4,734
Due after one year through five years, Amortized Cost	19,927
Due after one year through five years, Estimated fair value	20,036
Due after five years through ten years, Amortized Cost	1,574
Due after five years through ten years, Estimated fair value	1,609
Total available-for-sale securities, Amortized Cost	26,225	$ 25,490
Total available-for-sale securities, Estimated fair value	$ 26,379	$ 25,526

Business Combination, Goodwill and Intangibles - Intangibles (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract]
Total finite and indefinite-lived intangible assets, gross	$ 8,944		$ 5,674
Accumulated amortization	(2,128)		(1,964)
Intangible assets, net (excluding goodwill)	6,816		3,710
Amortization of Intangible Assets	$ 164	$ 143
Tradename
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-lived intangible assets, useful life (in years)	7 years
Finite-lived intangible assets, gross	$ 435		435
Patents and technological know-how
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-lived intangible assets, useful life (in years)	10 years
Finite-lived intangible assets, gross	$ 5,310		2,070
Proprietary software
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-lived intangible assets, gross	$ 2,961		2,961
Other
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-lived intangible assets, useful life (in years)	5 years
Finite-lived intangible assets, gross	$ 238		$ 208
Minimum
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-lived intangible assets, useful life (in years)	3 years
Maximum
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-lived intangible assets, useful life (in years)	15 years

Intangible Assets Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] (Details) $ in Thousands	Mar. 31, 2014 USD ($)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2014 (remainder)	$ 665
2015	847
2016	810
2017	721
2018	700
Thereafter	3,073
Finite-Lived Intangible Assets, Net	$ 6,816

Intangible Assets Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2014	Mar. 07, 2014	Dec. 31, 2013
Goodwill [Line Items]
Goodwill	$ 9,872		$ 3,472
Sabine, Inc. [Member]
Goodwill [Line Items]
Goodwill		$ 6,399

Inventories (Details) - USD ($) $ in Thousands	3 Months Ended
Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Inventory [Line Items]
Losses incurred on valuation of inventory and write-off of obsolete inventory	$ 416	$ (34)
Current:
Raw materials	1,959		$ 1,362
Finished goods	10,682		10,916
Inventories, current	12,641		12,278
Long-term:
Raw materials	256		227
Finished Goods	319		324
Inventory, Noncurrent	575		551
Distributor Channel Inventory [Member]
Current:
Inventories, current	$ 1,578		$ 1,520

Share-Based Payments (Details) - USD ($)	3 Months Ended
Share-Based Payments (Details) - USD ($)	Mar. 31, 2014	Mar. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	$ 84,000	$ 59,000
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
unrecognized compensation cost related to non-vested stock options, net of forfeitures	$ 641
Outstanding, weighted average remaining contractual term (in years)	2 years 3 months 22 days
Cost of Goods, Total [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	$ 2,000	2,000
Selling and Marketing Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	20,000	15,000
Research and Development Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	11,000	11,000
General and Administrative Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	$ 51,000	$ 31,000

Shareholders' Equity (Details) - USD ($) $ in Thousands	3 Months Ended
Shareholders' Equity (Details) - USD ($) $ in Thousands	Mar. 31, 2014	Mar. 31, 2013
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at the beginning of the period	$ 70,335	$ 66,668
Net income	490	731
Treasury stock purchased	0	(574)
Share-based compensation	84	59
Excess Tax Benefit from Share-based Compensation, Financing Activities	87	0
Exercise of stock options	1,021	76
Stock issued for acquisitions	1,679	0
Unrealized gain or loss on investments, net of tax	73	0
Balance at end of the period	$ 73,769	$ 66,960

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Net Income
-URI http://asc.fasb.org/extlink&oid=6518256

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=31042434&loc=d3e3602-108585

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.19)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.18)
-URI http://asc.fasb.org/extlink&oid=26872669&loc=d3e20235-122688

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.22)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Other Comprehensive Income
-URI http://asc.fasb.org/extlink&oid=6519514

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=28358780&loc=d3e565-108580

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 19
-Article 5

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 20
-Article 9

+ Details

Fair Value Measurements (Details) - USD ($) $ in Thousands	Mar. 31, 2014	Dec. 31, 2013
Schedule of Available-for-sale Securities [Line Items]
Estimated fair value	$ 26,379	$ 25,526
Fair Value, Measurements, Recurring [Member]
Schedule of Available-for-sale Securities [Line Items]
Estimated fair value	26,379	25,526
Fair Value, Measurements, Recurring [Member] \| Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Estimated fair value	19,737	18,857
Fair Value, Measurements, Recurring [Member] \| Municipal Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Estimated fair value	6,642	6,669
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member]
Schedule of Available-for-sale Securities [Line Items]
Estimated fair value	0	0
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member] \| Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Estimated fair value	0	0
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member] \| Municipal Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Estimated fair value	0	0
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 2 [Member]
Schedule of Available-for-sale Securities [Line Items]
Estimated fair value	26,379	25,526
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 2 [Member] \| Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Estimated fair value	19,737	18,857
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 2 [Member] \| Municipal Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Estimated fair value	6,642	6,669
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 3 [Member]
Schedule of Available-for-sale Securities [Line Items]
Estimated fair value	0	0
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 3 [Member] \| Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Estimated fair value	0	0
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 3 [Member] \| Municipal Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Estimated fair value	$ 0	$ 0

Income Taxes Income Tax Rates (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Income Tax Rate Disclosures [Abstract]
Effective tax rate, forecasted	35.00%
Effective Income Tax Rate, Continuing Operations, Forecasted Increase (Decrease) in Rate	1.70%
Effective Income Tax Rate, Continuing Operations		33.30%
Effective tax rate, including loss jurisdictions	43.20%
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	$ 82
Effective Tax Rate, After Discreet Benefits	41.90%

Subsequent Events Subsequent Events (Details) € in Thousands, $ in Thousands			3 Months Ended
	Apr. 02, 2014 EUR (€)	Apr. 02, 2014 USD ($)	Mar. 31, 2014 USD ($)
Subsequent Event [Line Items]
Business Combination, Consideration Transferred			$ 10,381
Spontania [Member] \| Subsequent Event [Member]
Subsequent Event [Line Items]
Business Combination, Consideration Transferred	€ 3,660	$ 5,000