Document And Entity Information - USD ($) $ in Millions	12 Months Ended
Document And Entity Information - USD ($) $ in Millions	Dec. 31, 2017	Mar. 01, 2018	Jun. 30, 2017
Document Information [Line Items]
Entity Registrant Name	CUTERA INC
Entity Central Index Key	0001162461
Trading Symbol	cutr
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		13,582,973
Entity Public Float			$ 278
Document Type	10-K
Document Period End Date	Dec. 31, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY
Amendment Flag	false

Consolidated Balance Sheets - USD ($)
$ in Thousands

Dec. 31, 2017

Dec. 31, 2016

Current assets:

Cash and cash equivalents

$ 14,184

$ 13,775

Marketable investments

21,728

40,299

Accounts receivable, net of allowance for doubtful accounts of $9 and $21, respectively

20,777

16,547

Inventories

28,782

14,977

^[1]

Other current assets and prepaid expenses

2,903

2,251

Total current assets

88,374

87,849

Property and equipment, net

2,096

1,907

Deferred tax assets

19,055

377

Intangibles, net

Goodwill

1,339

Other long-term assets

374

380

Total assets

111,238

91,854

Current liabilities:

Accounts payable

7,002

2,598

Accrued liabilities

26,848

17,397

Deferred revenue

9,461

8,394

Total current liabilities

43,311

28,389

Deferred revenue, net of current portion

2,195

1,705

Income tax liability

379

168

Other long-term liabilities

460

582

Total liabilities

46,345

30,844

Commitments and contingencies (Note 12)

Stockholders’ equity:

Convertible preferred stock, $0.001 par value: Authorized: 5,000,000 shares; Issued and outstanding: none

Common stock, $0.001 par value: Authorized: 50,000,000 shares; Issued and outstanding: 13,477,973 and 13,773,389 shares at December 31, 2017 and 2016, respectively

Additional paid-in capital

62,025

88,114

Retained earnings (accumulated deficit)

2,947

(27,046)

Accumulated other comprehensive loss

(92)

(72)

Total stockholders’ equity

64,893

61,010

Total liabilities and stockholders’ equity

$ 111,238

$ 91,854

[1]	The Raw materials balance in prior year was reclassified for consistency with current year.

Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Accounts receivable, allowance for doubtful accounts	$ 9	$ 21
Convertible preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Convertible preferred stock, authorized (in shares)	5,000,000	5,000,000
Convertible preferred stock, issued (in shares)	0	0
Convertible preferred stock, outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	50,000,000	50,000,000
Common stock, issued (in shares)	13,477,973	13,773,389
Common stock, outstanding (in shares)	13,477,973	13,773,389

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Net revenue:
Products	$ 132,660	$ 99,028	$ 77,022
Sales Revenue, Services, Net	18,833	19,028	17,739
Total net revenue	151,493	118,056	94,761
Cost of revenue:
Products	56,363	40,149	32,402
Service	9,020	9,772	8,076
Total cost of revenue	65,383	49,921	40,478
Gross profit	86,110	68,135	54,283
Operating expenses:
Sales and marketing	52,070	41,563	35,942
Research and development	12,874	11,232	10,733
General and administrative	14,090	12,943	12,129
Lease termination income	(4,000)
Total operating expenses	75,034	65,738	58,804
Income (loss) from operations	11,076	2,397	(4,521)
Interest and other income, net	884	323	293
Income (loss) before income taxes	11,960	2,720	(4,228)
Income tax provision (benefit)	(18,033)	143	212
Net income (loss)	$ 29,993	$ 2,577	$ (4,440)
Net income (loss) per share:
Basic (in dollars per share)	$ 2.16	$ 0.19	$ (0.32)
Diluted (in dollars per share)	$ 2.04	$ 0.19	$ (0.32)
Weighted-average number of shares used in per share calculations:
Basic (in shares)	13,873	13,225	13,960
Diluted (in shares)	14,728	13,753	13,960

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Net income (loss)	$ 29,993	$ 2,577	$ (4,440)
Available-for-sale investments
Net change in unrealized gain (loss) on available-for-sale investments	(15)	30	(87)
Less: Reclassification adjustment for net gains on investments recognized during the year	(5)	(3)	(7)
Net change in unrealized gain (loss) on available-for-sale investments	(20)	27	(94)
Tax provision		10
Other comprehensive income (loss), net of tax	(20)	17	(94)
Comprehensive income (loss)	$ 29,973	$ 2,594	$ (4,534)

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Total
Balance (in shares) at Dec. 31, 2014	14,446,950
Balance at Dec. 31, 2014	$ 14	$ 105,721	$ (25,232)	$ 5	$ 80,508
Issuance of common stock for employee purchase plan (in shares)	55,872
Issuance of common stock for employee purchase plan		577			$ 577
Exercise of stock options (in shares)	1,141,904				1,141,904
Exercise of stock options	$ 2	10,500			$ 10,502
Issuance of common stock in settlement of restricted and performance stock units, net of shares withheld for employee taxes, and stock awards (in shares)	154,119
Issuance of common stock in settlement of restricted and performance stock units, net of shares withheld for employee taxes, and stock awards		(1,018)			(1,018)
Repurchase of common stock (in shares)	(2,818,038)
Repurchase of common stock	$ (3)	(40,082)			(40,085)
Stock-based compensation expense		4,084			4,084
Net income (loss)			(4,440)		(4,440)
Net change in unrealized loss on available-for-sale investments				(94)	(94)
Balance (in shares) at Dec. 31, 2015	12,980,807
Balance at Dec. 31, 2015	$ 13	79,782	(29,672)	(89)	50,034
Issuance of common stock for employee purchase plan (in shares)	79,922
Issuance of common stock for employee purchase plan		768			$ 768
Exercise of stock options (in shares)	1,051,138				1,051,138
Exercise of stock options	$ 1	9,342			$ 9,343
Issuance of common stock in settlement of restricted and performance stock units, net of shares withheld for employee taxes, and stock awards (in shares)	116,833
Issuance of common stock in settlement of restricted and performance stock units, net of shares withheld for employee taxes, and stock awards		(618)			(618)
Repurchase of common stock (in shares)	(455,311)
Repurchase of common stock		(4,873)			(4,873)
Stock-based compensation expense		3,713			3,713
Net income (loss)			2,577		2,577
Net change in unrealized loss on available-for-sale investments				17	$ 17
Balance (in shares) at Dec. 31, 2016	13,773,389				13,773,389
Balance at Dec. 31, 2016	$ 14	88,114	(27,046)	(72)	$ 61,010
Deferred tax relating to adoption of ASU 2016-09			49		49
Issuance of common stock for employee purchase plan (in shares)	78,479
Issuance of common stock for employee purchase plan		1,059			$ 1,059
Exercise of stock options (in shares)	488,398				488,398
Exercise of stock options		4,376			$ 4,376
Issuance of common stock in settlement of restricted and performance stock units, net of shares withheld for employee taxes, and stock awards (in shares)	160,309
Issuance of common stock in settlement of restricted and performance stock units, net of shares withheld for employee taxes, and stock awards		(1,469)			(1,469)
Repurchase of common stock (in shares)	(1,022,602)
Repurchase of common stock	$ (1)	(35,165)			(35,166)
Stock-based compensation expense		5,110			5,110
Net income (loss)			29,993		29,993
Net change in unrealized loss on available-for-sale investments				(20)	$ (20)
Balance (in shares) at Dec. 31, 2017	13,477,973				13,477,973
Balance at Dec. 31, 2017	$ 13	$ 62,025	$ 2,947	$ (92)	$ 64,893

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities:
Net income (loss)	$ 29,993	$ 2,577	$ (4,440)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Stock-based compensation	5,110	3,713	4,084
Depreciation and amortization	1,016	982	1,186
Change in deferred tax assets	(18,678)	22	(55)
Other	(52)	(7)	282
Changes in assets and liabilities:
Accounts receivable	(4,229)	(4,899)	(536)
Inventories	(13,805)	(2,899)	(1,090)
Other current assets and prepaid expenses	(591)	(432)	241
Other long-term assets	6	4	(23)
Accounts payable	4,404	639	(1,124)
Accrued liabilities	9,345	3,461	2,687
Other long-term liabilities		(329)	(289)
Deferred revenue	1,557	(826)	(2,319)
Income tax liability	211	(14)	37
Net cash provided by (used in) operating activities	14,287	1,992	(1,359)
Cash flows from investing activities:
Acquisition of property, equipment and software	(855)	(537)	(746)
Disposal of property and equipment	53	20
Proceeds from sales of marketable investments	33,640	9,008	21,171
Proceeds from maturities of marketable investments	45,812	25,810	35,918
Purchase of marketable investments	(60,956)	(37,693)	(23,697)
Net cash provided by (used in) investing activities	17,694	(3,392)	32,646
Cash flows from financing activities:
Repurchase of common stock	(35,167)	(4,873)	(40,085)
Proceeds from exercise of stock options and employee stock purchase plan	5,435	10,111	11,079
Taxes paid related to net share settlement of equity awards	(1,469)	(618)	(1,018)
Payments on capital lease obligation	(371)	(313)	(198)
Net cash provided by (used in) financing activities	(31,572)	4,307	(30,222)
Net increase in cash and cash equivalents	409	2,907	1,065
Cash and cash equivalents at beginning of year	13,775	10,868	9,803
Cash and cash equivalents at end of year	14,184	13,775	10,868
Supplemental cash flow information:
Cash paid for interest	70	43	20
Cash paid for income taxes	220	222	160
Supplemental non-cash investing and financing activities:
Assets acquired under capital lease	$ 365	$ 801	$ 285

Note 1 - Description of Business	12 Months Ended
Note 1 - Description of Business	Dec. 31, 2017
Notes to Financial Statements
Business Description and Basis of Presentation [Text Block]	NOTE 1 . DESCRIPTION OF BUSINESS Cutera, Inc. (“ Cutera” or the “Company”) is a global provider of laser and other energy-based aesthetic systems for practitioners worldwide. The Company designs, develops, manufactures, and markets laser and other energy-based product platforms for use by physicians and other qualified practitioners which enable them to offer safe and effective aesthetic treatments to their customers. The Company currently markets the following key system platforms: excel V, excel HR, enlighten, Juliet , Secret RF , truSculpt and xeo . The Company’s systems offer multiple hand pieces and applications, which allow customers to upgrade their systems. The sales of (i) systems, system upgrades and hand pieces (classified as “Systems” revenue); (ii) hand piece refills applicable to Titan and truSculpt 3D (classified as “Hand Piece Refills”); and (iii) the distribution of third party manufactured skincare products (classified as "Skincare” revenue); and collectively classified as “Products” revenue. In addition to Products revenue, the Company generates revenue from the sale of post-warranty service contracts, parts, detachable hand piece replacements (except for Titan and truSculpt 3D ) and service labor for the repair and maintenance of products that are out of warranty, all of which is classified as “Service” revenue. Headquartered in Brisbane, California, the Company has wholly-owned subsidiaries that are currently operational in Australia, Belgium, Canada, France, Germany, Hong Kong, Japan, Spain, Switzerland and the United Kingdom. These subsidiaries market, sell and service the Company’s products outside of the United States.

Note 2 - Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block]

NOTE

—SUMMARY OF SIGNIFICANT ACCOUTING POLICIES

Principles of Consolidation

The Consolidated Financial Statements include the accounts of the Company and

its wholly owned subsidiaries. All inter-company transactions and balances have been eliminated in consolidation.

Use of Estimates

The preparation of Consolidated Financial Statements in conformity with generally accepted accounting principles in the Un

ited States of America (“GAAP”) requires the Company’s management to make estimates and assumptions that affect the amounts reported of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reported periods. Actual results could differ materially from those estimates.

On an ongoing basis, the Company evaluates their estimates, including those related to warranty obligation,

sales commission, accounts receivable and sales allowances, valuation of inventories, fair values of acquired intangible assets, useful lives of intangible assets and property and equipment, assumptions regarding variables used in calculating the fair value of the Company's equity award, fair value of investments, contingent liabilities, recoverability of deferred tax assets, and effective income tax rates, among others. Management bases their estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.

Risks and Uncertainties

The Company's future results of operations involve a number of risks and uncert

ainties. Factors that could affect the Company's future operating results and cause actual results to vary materially from expectations include, but are

not

limited to, rapid technological change, continued acceptance of the Company's products, stability of world financial markets, management of international activities, competition from substitute products and larger companies, ability to obtain regulatory approval, government regulations, patent and other litigations, ability to protect proprietary technology from counterfeit versions of the Company's products, strategic relationships and dependence on key individuals. If the Company fails to adhere to ongoing Food and Drug Administration, or FDA, Quality System Regulation, the FDA

may

withdraw its market clearance or take other action. The Company's manufacturers and suppliers

may

encounter supply interruptions or problems during manufacturing due to a variety of reasons, including failure to comply with applicable regulations, including the FDA's Quality System Regulation, equipment malfunction and environmental factors, any of which could delay or impede the Company's ability to meet demand.

Cash and Cash Equivalents, and Marketable Investments

The Company invests it

s cash primarily in money market funds and in highly liquid debt instruments of U.S. federal and municipal governments and their agencies, commercial paper and corporate debt securities. All highly liquid investments with stated maturities of

three

months or less from date of purchase are classified as cash equivalents; all highly liquid investments with stated maturities of greater than

three

months are classified as marketable investments. The majority of the Company’s cash and investments are held in U.S. banks and its foreign subsidiaries maintain a limited amount of cash in their local banks to cover their short term operating expenses.

The Company determines the appropriate classification of its investments in marketable securities at the time of pur

chase and re-evaluates such designation at each balance sheet date. The Company’s marketable securities have been classified and accounted for as available-for-sale. Investments with remaining maturities more than

one

year are viewed by the Company as available to support current operations, and are classified as current assets under the caption marketable investments in the accompanying Consolidated Balance Sheets. Investments in marketable securities are carried at fair value, with the unrealized gains and losses reported as a component of stockholders’ equity. Any realized gains or losses on the sale of marketable securities are determined on a specific identification method, and such gains and losses are reflected as a component of interest and other income, net.

Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, the

Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value. Carrying amounts of the Company’s financial instruments, including cash equivalents, accounts receivable, accounts payable and accrued liabilities, approximate their fair values as of the balance sheet dates because of their generally short maturities.

The fair value hierarchy distin

guishes between (

) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (

) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of

three

broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level

) and the lowest priority to unobservable inputs (Level

). The

three

levels of the fair value hierarchy are described below in accordance to ASC

820:

	●	Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities.
	●	Level 2: Directly or indirectly observable inputs as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active. Level 2 also i ncludes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models, such as interest rates and volatility factors, are corroborated by readily observable data from actively quoted markets for substantially the full term of the financial instrument.
	●	Level 3: Unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions.

In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inp

uts and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value.

Impairment of Marketable Investments

After determining the fair value of available-for-sales debt

instruments, gains or losses on these securities are recorded to other comprehensive income (loss), until either the security is sold or the Company determines that the decline in value is other-than-temporary. The primary differentiating factors that the Company considers in classifying impairments as either temporary or other-than-temporary impairments are the Company’s intent and ability to retain the investment in the issuer for a period of time sufficient to allow for any anticipated recovery in market value or the maturity of the investment, the length of the time and the extent to which the market value of the investment has been less than cost and the financial condition and near-term prospects of the issuer. There were

other-than-temporary impairments in the years ended

December 31, 2017,

2016,

and

2015

Allowance for Sales Returns and Doubtful Accounts

The allowance for sales returns is based on the Company

’s estimates of potential future product returns and other allowances related to current period product revenue. The Company analyzes historical returns, current economic trends and changes in customer demand and acceptance of the Company's products. The allowance for doubtful accounts is based on the Company’s assessment of the collectability of customer accounts and the aging of the related invoices, and represents the Company's best estimate of probable credit losses in its existing trade accounts receivable. The Company regularly reviews the allowance by considering factors such as historical experience, credit quality, the age of the accounts receivable balances, and current economic conditions that

may

affect a customer’s ability to pay.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of risk consist principally of cash, cash equivalents, marketable investments and accounts receivable. The Company

’s cash and cash equivalents are primarily invested in deposits and money market accounts with

three

major financial institutions in the U.S. In addition, the Company has operating cash balances in banks in each of the international locations in which it operates. Deposits in these banks

may

exceed the amount of insurance provided on such deposits, if any. Management believes that these financial institutions are financially sound and, accordingly, believes that minimal credit risk exists. To date, the Company has

not

experienced any losses on its deposits of cash and cash equivalents.

The Company invests in debt instruments, including bonds of the U.S. Government, its agencies and municipalities. The Company has also invested in other high grade investments

such as commercial paper and corporate bonds. The Company has established guidelines relative to credit ratings, diversification and maturities that seek to maintain safety and liquidity. By policy, the Company restricts its exposure to any single issuer by imposing concentration limits. To minimize the exposure due to adverse shifts in interest rates, the Company maintains investments at an average maturity of generally less than

eighteen

months.

Accounts receivable are recorded net of an allowance for

doubtful accounts, and are typically unsecured and are derived from revenue earned from worldwide customers. The Company controls credit risk through credit approvals, credit limits, and monitoring procedures. The Company performs credit evaluations of its customers and maintains reserves for potential credit losses

. As of

December 31, 2017

and

2016,

there was

one

customer who represented

12%

of the Company’s net accounts receivable. During the years ended

December 31, 2017,

2016,

and

2015,

domestic revenue accounted for

62%,

55%,

and

52%,

respectively, of total revenue, while international revenue accounted for

38%,

45%,

and

48%,

respectively, of total revenue.

single customer represented more than

10%

of total revenue for any of the years ended

December 31, 2017,

2016,

and

2015

Inventories

Inventories are stated at the lower of cost and net realizable value, cost being determined on a standard cost basis which approximates actual cost on a

first

-in,

first

-out basis.

Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The cost basis of the Company’s inventory is reduced for any products that are considered excessive or obsolete based upon assumptions about future demand and market conditions.

The Company includes

demonstration units within inventories. Demonstration units are carried at cost and amortized over an estimated economic life of

two

years. Amortization expense related to demonstration units is recorded in Products cost of revenue or in the respective operating expense line based on which function and purpose for which the demonstration units are being used. Proceeds from the sale of demonstration units are recorded as revenue and all costs incurred to refurbish the systems prior to sale are charged to cost of revenue.

As of

December 31, 2017

and

2016,

demonstration inventories, net of accumulated depreciation, included in finished goods inventory balance was

$1.

million and

$2.4

million, respectively.

Property and Equipment

Property and equipment ar

e stated at cost, net of accumulated depreciation. Depreciation recognized is recognized on a straight-line basis over the estimated useful lives of the assets, generally as follows:

		Useful Lives
Leasehold improvements		Lesser of useful life or term of lease
Office equipment and furniture (in years)		3
Machinery and equipment (in years)		3

Upon sale or retirement of property and equipment, the costs and related accumulated depreciation and amortization are removed from the balance sheet

and the resulting gain or loss is reflected in operating expenses. Maintenance and repairs are charged to operations as incurred.

Depreciation expense related to property and equipment for

201

2016

and

2015,

was

$1.0

million

, $

0.8

million and $

0.7

million respectively. Amortization expense for vehicles leased under capital leases is included in depreciation expense.

Goodwill and

Other

Intangible Assets

Goodwill and intangible assets with indefinite useful lives are

not

amortized, but are tested

for impairment, applying a fair-value based test, at least annually during the

fourth

fiscal quarter, or if circumstances indicate their value

may

longer be recoverable. Goodwill represents the excess of the purchase price over the fair value of net tangible and identifiable intangible assets. The Company continues to operate in

one

segment, which is considered to be the sole reporting unit and, therefore, goodwill was tested for impairment at the enterprise level. As of

December 31, 2017,

there has been

impairment of goodwill. All acquired intangible assets have been fully amortized as of

December 31, 2017.

Warranty Obligations

The Company provides a standard

one

-year warranty on all systems sold to end-customers. Warranty coverage provided is for

labor and parts necessary to repair the systems during the warranty period. For sales to distributors, the Company generally provides a

month warranty for parts only, with labor being provided to the end customer by the distributor.

The Company

accounts for the estimated warranty cost of the standard warranty coverage as a charge to costs of revenue when revenue is recognized. Factors that affect the Company’s warranty reserves include the number of units sold, historical product performance, and anticipated rates of warranty repairs and the cost per repair. The Company periodically assesses the adequacy of the warranty reserve and adjusts the amount as necessary.

To determine the estimated warranty reserve, the Company utilizes actual service

records to calculate the average service expense per system and applies this to the equivalent number of units exposed under warranty. The Company updates these estimated charges every quarter.

Revenue Recognition

Products revenue is recognized when

title and risk of ownership has been transferred, provided that:

	●	Persuasive evidence of an arrangement exists;
	●	The price is fixed or determinable;
	●	Delivery has occurred or services have been rendered; and
	●	Collectability is reasonably a ssured.

Transfer of title and risk of ownership occurs when the product is shipped to the customer or when the customer receives the product, depending on the nature of the arrangement. Revenue is recorded net of customer and distributor discounts. When

collectability is

not

reasonably assured, the Company recognizes revenue upon receipt of cash payment. Sales to customers and distributors do

not

include any return or exchange rights. In addition, the Company’s distributor agreements obligate the distributor to pay the Company for the sale regardless of whether the distributor is able to resell the product. Shipping and handling charges are invoiced to customers based on the amount of products sold. Shipping and handling fees are recorded as revenue and the related expense as a component of Products cost of revenue.

Multiple-element

rrangements

A multiple-element arrangement includes the sale of

one

or more tangible product offerings with

one

or more associated services offerings, each of which are individually considered separate units of accounting. The Company determined that its multiple-ele

ment arrangements are generally comprised of the following elements that are recognized as separate units of accounting: Product, service contracts

training, and in some cases, marketing support and installation.

For multiple-element arrangements, judgments are required as to the allocation of the proceeds received from an arrangement to the multiple elements of the arrangement. For multiple element arrangements the Company allocates revenue to all deliverables based on

their relative selling prices in accordance with the Financial Accounting Standards (“FASB”) Accounting Standards Codification (“ASC”)

605

25.

Because the Company has neither vendor-specific objective evidence (“VSOE”) nor

third

-party evidence of selling price (“TPE”) for the Company's systems, the allocation of revenue has been based on the Company's best estimate of selling prices (“BESP”). The objective of BESP is to determine the price at which the Company would transact a sale if the product or service was sold on a stand-alone basis. The Company determines BESP for the Company's deliverables by considering multiple factors including, but

not

limited to, features and functionality of the system, geographies, type of customer and market conditions

With respect to the sale of its

earlier generation of the

truSculpt

product, the Company includes unlimited refills as part of the

truSculpt

standard warranty and the Company does

not

account for the

truSculpt

warranty as a separate deliverable under the multiple-element arrangement revenue guidance. Upon a

truSculpt

sale, the Company recognizes the estimated costs which will be incurred under the warranty obligation in Products cost of revenue. In

May 2017,

the Company launched a more advanced version of its body system called

truSculpt

ustomers are required to purchase hand piece refills as needed on a

truSculpt

. Revenue from the sale of such refills is recorded as Product revenue in the period in which such sales are made.

Customer Marketing Arrangements

The Company has

a customer marketing and incentive program called “Cutera Bucks” for its North America customers through which it offers various sales incentives and discounts and pays or reimburses customers for qualifying expenses associated with practice set-up, advertising procedures related to the system purchased, and other expenses. The Company records such incentives as a reduction of revenue at the time when the sale of the system is recorded.

Service Revenue

The Company also offers customers extended service contracts. Revenue under service contracts is recognized on a straight-line basis over the per

iod of the applicable service contract.

Revenue from services performed in the absence of a

service contract, including installation and training revenue, is recognized when the related services are performed and collectability is reasonably assured

Service revenue billed on a time and material basis, from customers whose systems are

not

under a service contact, is recognized as the services are provided. Service revenue for the years ended

December 31,

201

2016,

and

2015

was

$18.8

million,

$19.0

million, and

$17.7

million, respectively.

Bill and Hold Arrangement

2017

the Company segregated certain products for

one

order at the request of a customer for a limited period of time at a

third

-party storage facility (“bill -and -hold”). Revenue recognition for the bill-and-hold transaction requires consideration of, among other things, whether the customer has made a written fixed commitment to purchase the product; the existence of a substantial business purpose for the arrangement; the bill-and-hold arrangement is at the request of the customer; the scheduled delivery date must be reasonable and consistent with the buyer's business purpose; title and risk of ownership must pass to the customer and

additional performance obligations exist by the Company, at the time of the bill-and-hold the product is complete and ready for shipment and the product has been segregated from the Company's inventory.

The Company recognized revenue of

$938,000

for a bill-and-hold transaction in

2017.

There were

such transactions in

2016

and

2015.

Cost of Revenue

Cost of revenue consists primarily of material, finished and semi-finished products purchased from

third

-party manufacturers, labor, stock-based compensation expenses, overhead inv

olved in the Company's internal manufacturing processes, technology license amortization and royalties, costs associated with product warranties and any inventory or intangible write-downs.

The Company's system sales include a control console, universal graphic us

er interface, control system software, high voltage electronics and a combination of applications (referred to as hand pieces). Hand pieces are programmed to have a limited number of uses to ensure the safety of the device to patients. The Company sells refurbished hand pieces, or "refills," of its

Titan

and

truSculpt

products and provides for the cost of refurbishment of these hand pieces as part of cost of revenue. When customers purchase a replacement hand piece (or “refill”) or are provided a replacement hand piece under a warranty or service contract, the Company ships the customer a previously refurbished unit. Upon the receipt of the expended hand piece from the customer

, the Company capitalizes the expended hand piece as inventory at the estimated fair value. Cost of revenue includes the costs incurred to refurbish hand pieces.

Research and Development Expenditures

Research and development costs are expensed as incurred and include costs related to research, design, development, testing

of products, salaries, benefits and other headcount related costs, facilities, material,

third

party contractors, regulatory affairs, clinical and development costs

Advertising Costs

Advertising costs are included as part of sales and marketing expens

e and are expensed as incurred. Advertising expenses for

2017,

2016

and

2015

were

$1.8

million,

$1.3

million and

$1.2

million, respectively.

Stock-based Compensation

The Company accounts for share-based compensation costs in accordance with the accounting standards for share-based compensation, which require that all share-based payments to employees

and non-employees be recognized in the consolidated statements of operations based on their fair values.

●

The fair value of stock options ("options") on the grant date is estimated using the Black-Scholes option-pricing model using the single-option approach. The Black-Scholes option pricing model requires the use of highly

subjective and complex assumptions, including the option's expected term and the price volatility of the underlying stock, to determine the fair value of award. The Company recognizes the expense associated with options using a single award approach over the requisite service period.

The Company accounts for all stock options awarded to non-employees at the fair value of the consideration received or the fair

value of the equity instrument issued, as calculated using the Black-Scholes model. The Company subjects stock options granted to non-employees to periodic revaluation at

each reporting date as the underlying equity instruments vest

	●	The fair value of Restricted Stock Units ("RSUs") is based on the stock price on the grant date using a single-award approach. The RSUs are subject to a service vesting condition and are recognized on a straight-line basis over the requisite service period. For RSUs to non-employees, the Company recognizes expense on an accelerated attribution method and these equity awards are re-measured at fair value at the end of each reporting period, with the changes in fair value recorded to stock-based compensation expense in the period in which the change occurs.
	●	The fair value of Performance Stock Units (“PSUs”) that have operational measurement goals, are measured at the market price of the Company’s stock on the date of grant. PSUs with market-based measurement goals are valued using the Monte-Carlo simulation option-pricing model. The Monte-Carlo simulation option-pricing model uses the same input assumptions as the Black-Scholes model, however, it further incorporates into the fair-value determination the possibility that the market condition may not be satisfied. Stock-based compensation expense for market-based PSU awards is recognized regardless of whether the market condition is satisfied, provided that the requisite service has been provided. For PSUs provided to non-employees, the Company recognizes expense on an accelerated attribution method and these equity awards are re-measured at fair value at the end of each reporting period, with the changes in fair value recorded to stock-based compensation expense in the period in which the change occurs.

The Company recognizes share-based compensation expense for the portion of the equity award that is expected to vest over the requisite service period for those awards and develops an estimate of the number of s

hare-based awards which will ultimately vest, primarily based on historical experience. The estimated forfeiture rate is reassessed periodically throughout the requisite service period. Such estimates are revised if they differ materially from actual forfeitures. As required, the forfeiture estimates will be adjusted to reflect actual forfeitures when an award vests. For the award types discussed above, if an employee terminates employment prior to being vested in an award, then the award is forfeited.

r RSUs and PSUs, the Company issues shares on the vesting dates, net of applicable tax withholding requirements to be paid by the Company on behalf of its employees and non-employees. As a result, the actual number of shares issued will be fewer than the actual number of RSUs and PSUs that vest. The Company records the liability for withholding amounts to be paid by the Company as a reduction to additional paid-in capital when the shares are issued.

Cash flows resulting from the tax benefits due to tax de

ductions in excess of the compensation cost recognized for stock-based awards for options exercised and for RSUs and PSUs vested during the period (excess tax benefits), are classified as operating cash flows.

Income Taxes

The Company account for

income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date

For deferred tax assets which are

not

subject to a valuation allowance, the Company has determined that its future taxable i

ncome will be sufficient to recover all of the deferred tax assets. However, should there be a change in the recoverability of the deferred tax assets, the Company could be required to record a valuation allowance against the net carrying value of its deferred tax assets. This would result in an increase to the Company’s tax provision in the period in which they determined that the recovery was

not

probable.

The Company recognizes deferred tax assets to the extent that the Company believes these assets are more likely than n

ot to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines that it would be able to realize its deferred tax assets in the future in excess of its net recorded amount, it would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The measurement of deferred taxes often involves an exercise of judgment related to the computation and realization of tax basis. The deferred tax assets and liabilities reflect management’s assessment that tax positions taken, and the resulting tax basis, are more likely than

not

to be sustained if they are audited by taxing authorities. Also, assessing tax rates that the Company expects to apply and determining the years when the temporary differences are expected to affect taxable income requires judgment about the future apportionment of the Company’s income among the states in which the Company operates. These matters, and others, involve the exercise of significant judgment. Any changes in the Company’s practices or judgments involved in the measurement of deferred tax assets and liabilities could materially impact the Company’s financial condition or results of operations.

Valuation allowances are established when necessary to reduce deferred income tax assets to amounts that the Company

believes are more likely than

not

to be recovered. The Company evaluates its deferred tax assets quarterly to determine whether adjustments to the Company’s valuation allowance are appropriate. In making this evaluation, the Company relies on its

three

year cumulative profit, estimated timing of future deductions and benefits represented by the deferred tax assets, and its forecasts of future earnings, the latter

two

of which involve the exercise of significant judgment.

The Company

establishes reserves for uncertain tax positions in accordance with Income Taxes subtopic of ASC

740

on the basis of a

two

-step process whereby (

) it determines whether it is more likely than

not

that the tax positions will be sustained on the basis of the technical merits of the position and (

) for those tax positions that meet the more-likely-than-

not

recognition threshold, it recognize the largest amount of tax benefit that is more than

percent likely to be realized upon ultimate settlement with the related tax authority

The impact of an uncertain income tax position on income tax expense must be recognized at the largest amount that is more

likely than

not

to be sustained. An uncertain income tax position will

not

be recognized if it has less than a

50%

likelihood of being sustained. The Company has provided taxes and related interest and penalties due for potential adjustments that

may

result from examinations of open U.S. Federal, state and foreign tax years. The Company will reverse the liability and recognize a tax benefit during the period in which the Company makes the determination that the tax position is effectively settled through examination, negotiation, or litigation, or the statute of limitations for the relevant taxing authority to examine and challenge the tax position has expired. The Company will record an additional charge in the Company’s provision for taxes in the period in which the Company determines that the recorded tax liability is less than the Company expects the ultimate assessment to be.

mprehensive

Income (

Loss

)

Comprehensive

income (loss) includes all changes in stockholders’ equity except those resulting from investments or contributions by stockholders. For the periods presented, the accumulated other comprehensive income (loss) consisted solely of the unrealized gains or losses on the Company's available-for-sale investments, net of tax.

Foreign Currency

The U.S. Dollar is the functional currency of the Company

’s subsidiaries. Monetary assets and liabilities are re-measured into U.S. Dollars at the applicable period end exchange rate. Sales and operating expenses are re-measured at average exchange rates in effect during each period. Gains or losses resulting from foreign currency transactions are included in net income (loss) and are insignificant for each of the

three

years ended

December 31, 2016.

The effect of exchange rate changes on cash and cash equivalents was insignificant for each of the

three

years presented in the period ended

December 31, 2017.

Segments

The Company operates in

one

segment. Management uses

one

measuremen

t of profitability and does

not

segregate its business for internal reporting. As of

December 31, 2017

and

2016,

substantially all long-lived assets were maintained in the U.S. See Note

for details relating to revenue by geography.

Recent Accounting Pr

onouncements

Not

Yet Adopted

New Revenue Standard

May 2014,

the Financial Accounting Standards Board (“

FASB”) issued ASU

No.

2014

09,

Revenue from Contracts with Customers, which sets forth a single, comprehensive revenue recognition model for all contracts with customers to improve comparability. Subsequently, the FASB has issued several standards related to ASU

2014

(collectively, the “New Revenue Standard”). The New Revenue Standard requires revenue recognition to depict the transfer of goods or services to customers in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. In addition, the New Revenue Standard requires expanded disclosures. This New Revenue Standard permits the use of either the full retrospective or modified retrospective method (also referred to as the cumulative effect transition method) when adopted. The New Revenue Standard becomes effective for the Company in the

first

quarter of fiscal year

2018.

The New Revenue

Standard’s core principle is that a reporting entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In applying this new guidance to contracts within its scope, an entity will:

(

)

identify the contract(s) with a customer;

(

)

identify the performance obligation in the contract;

(

)

determine the transaction price;

(

)

allocate the transaction price to the

performance obligations in the contract; and

(

)

recognize revenue when (or as) the entity satisfies a performance obligation.

The Company will adopt the New Revenue Standard in the

first

quarter of fiscal year

2018

using the modified retrospective method.

Upon adoption, the Company expects to record an adjustment to retained earnings for the following items in the

first

quarter of

2018:

●

Adjustment to its deferred revenue balance for the differences in the amount of revenue recognition for the Company

’s revenue streams as a result of allocation of revenue based on standalone selling prices to the Company’s various performance obligations.

●

Adjustment for capitalizing the incremental contract acquisition costs

, such as sales commissions paid in connection with system sales with multi-year service contracts. These contract acquisition costs will be capitalized and amortized over the estimated customer life under the New Revenue Standard. Under the prior guidance, the Company expensed such costs when incurred.

●

Adjustment for accru

ing financing costs for multi-year post-warranty service for customers who pay more than

one

year in advance of receiving the service. The Company will estimate interest expense for such advance payment under the New Revenue Standard going forward.

Impact of the adoption of the New Revenue Standard is expected to result in a net increase in the Company's retained earnings by approximately

$4.8

million -

$5.5

million, majority of which relates to the capitalization of contract acquisition costs. The Company's evaluation of the adjustment will be completed in the

first

quarter of fiscal year

2018.

In pr

eparation of adopting the New Revenue Standard, the Company has implemented additional internal controls and is enhancing its processes to enable future preparation of financial information in accordance with the New Revenue Standard. The New Revenue Standard requires significantly expanded disclosures about revenue in the Company’s financial statement beginning with the

first

quarter of

2018.

These expanded disclosures will include quantitative and qualitative disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers.

Pursuant to ASC paragraphs

606

through

and ASC paragraph

460

the Company will continue to account for standard warranty coverage as it has historically.

The New Revenue Standard is principle based and interpretation of those principles

may

vary from company to company based on their unique circumstances. It is possible that interpretation, industry practice, and guidance

may

evolve as companies and the ac

counting profession work to implement this new standard. While substantially complete, the Company is still in the process of finalizing its evaluation of the effect of the New Revenue Standard and will finalize its accounting assessment and quantitative impact of the adoption of the New Revenue Standard during the

first

quarter of fiscal year

2018.

As the Company completes its evaluation of this new standard, new information

may

arise that could change the Company’s current understanding of the impact to revenue and expense recognized. Additionally, the Company will continue to monitor industry activities and any additional guidance provided by regulators, standards setters, or the accounting profession and adjust the Company’s assessment and implementation plans accordingly.

Other Accounting

Pronouncements

February 2016,

the FASB issued ASU

No.

2016

02,

Leases (Topic

842

), which amends the existing accounting standards for leases. The new standard requires lessees to record a right-of-use asset and a corresponding lease liability on the balance sheet (with the exception of short-term leases). The new standard also requires expanded disclosures regarding leasing arrangements. The new standard becomes effective for the Company in the

first

quarter of fiscal year

2019

and early adoption is permitted. The new standard is required to be adopted using the modified retrospective approach and requires application of the new standard at the beginning of the earliest comparative period presented. The Company finances its fleet of vehicles used by its field sales and service employees and has facility leases. Several of the Company

’s customers finance purchases of its system products through

third

party lease companies and

not

directly with the Company. The Company does

not

believe that the new standard will change customer buying patterns or behaviors for its products. The Company will adopt the new standard effective

January 1, 2019.

The Company expects that upon adoption, right-of-use assets and lease liabilities will be recognized in the balance sheet in amounts that will be material.

August 2016,

the FASB issued ASU

2016

15,

Statement of Cash Flows (Topic

230

), which intends to reduce diversity in practice in how certain cash receipts and cash payments are classified in the statement of cash flows. This guidance will be effective for the Company in the

first

quarter of

2018.

The Company is still assessing the impact of the adoption of this guidance to the consolidated financial statements

October 2016,

the FASB issued ASU

No.

2016

16,

Income Taxes (Topic

740

): Intr

a-Entity Transfer of Assets Other than Inventory, which requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. This ASU will be effective for the Company in the

first

quarter of

2018.

This ASU is required to be adopted using the modified retrospective approach, with a cumulative catch-up adjustment to retained earnings in the period of adoption. The Company does

not

believe that adopting this ASU will have a material impact on the consolidated financial Statements.

November 2016,

the FASB issued ASU

2016

18,

Statement of Cash Flows (Topic

320

), which amended the guidance on the classification and presentation of restricted cash in the statement of cash flow. The

amendment requires entities to include restricted cash and restricted cash equivalents in its cash and cash equivalents in the statement of cash flow. The amendment will be effective for the Company in the

first

quarter of

2018

and is required to be adopted retrospectively. The Company does

not

expect that the adoption of this guidance will have a material impact on its consolidated financial statements.

January 2017,

the FASB clarified its guidance to simplify the measurement of goodwill by eliminating

the Step

impairment test. The new guidance requires companies to perform the goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. The amendment will be effective for the Company beginning in its

first

quarter of fiscal year

2021.

The amendment is required to be adopted prospectively. Early adoption is permitted. The Company does

not

expect that the adoption of this guidance will have a material impact on its consolidated financial statements.

Recently Adopte

d Accounting Standards

January 2017, the Company

adopted Accounting Standards Update (“

ASU”)

2015

11,

Simplifying the Measurement of Inventory

." The guidance requires that inventory that is measured on a FIFO or average cost basis be measured at lower of cost and net realizable value, as opposed to the lower of cost or market. The Company applied this guidance prospectively and there was

material impact on the Company's financial condition, results of operations or cash flows as a result of adoption.

Note 3 - Investment Securities

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Cash, Cash Equivalents, and Marketable Securities [Text Block]

NOTE

—INVESTMENT SECURITIES

The following tables summarize cash, cash equivalents and marketable securities (in thousands):

	December 31,
	2017		2016
Cash and cash equivalents:
Cash	$	14,058	$	6,672
Cash equivalents:
Money market funds		126		6,053
Commercial paper		—		1,050
Total cash and cash equivalents		14,184		13,775

Marketable securities:
U.S. government notes		11,870		8,398
U.S. government agencies		—		3,916
Municipal securities		200		1,325
Commercial paper		1,833		12,299
Corporate debt securities		7,825		14,361
Total marketable securities		21,728		40,299

Total cash, cash equivalents and marketable securities	$	35,912	$	54,074

The following table summarizes

unrealized gains and losses related to the Company’s marketable investments (in thousands):

December 31, 2017	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Market Value
Cash and cash equivalents	$	14,184	$	—	$	—		$	14,184

Marketable investments
U.S. government notes		11,885		—		(15	)		11,870
U.S. government agencies		—		—		—			—
Municipal securities		201		—		(1	)		200
Commercial paper		1,836		—		(3	)		1,833
Corporate debt securities		7,838		2		(15	)		7,825
Total marketable securities		21,760		2		(34	)		21,728

Total cash, cash equivalents and marketable securities	$	35,944	$	2	$	(34	)	$	35,912

December 31, 201 6	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Market Value
Cash and cash equivalents	$	13,775	$	—	$	—		$	13,775

Marketable investments
U.S. government notes		8,403		4		(9	)		8,398
U.S. government agencies		3,918		—		(2	)		3,916
Municipal securities		1,325		—		—			1,325
Commercial paper		12,299		2		(2	)		12,299
Corporate debt securities		14,366		3		(8	)		14,361
Total marketable securities		40,311		9		(21	)		40,299

Total cash, cash equivalents and marketable securities	$	54,086	$	9	$	(21	)	$	54,074

investments were in a continuous unrealized loss position for longer than

months as of

December 31,

201

and

2016

The

following table summarizes the estimated fair value of the Company’s marketable investments classified by the contractual maturity date of the security as of

December 31, 2017 (

in thousands):

	Amount
Due in less than one year (fiscal year 201 8)	$	19,109
Due in 1 to 3 years (fiscal year 2019)		2,619
Total marketable securities	$	21,728

Fair Value Measurements

The following table summarizes financial assets measured and recognized at fair value on a recurring basis and classified

under the appropriate level of the fair value hierarchy as described above (in thousands):

December 31, 2017	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	126	$	—	$	—	$	126
Commercial paper		—		—		—		—
Short term marketable investments:
Available-for-sale securities		—		21,728		—		21,728
Total assets at fair value	$	126	$	21,728	$	—	$	21,854

December 31, 2016	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	6,053	$	—	$	—	$	6,053
Commercial paper		—		1,050		—		1,050
Short term marketable investments:
Available-for-sale securities		—		40,299		—		40,299
Total assets at fair value	$	6,053	$	41,349	$	—	$	47,402

The Company

’s Level

financial assets are money market funds with fair values that are based on quoted market prices. The Company’s Level

investments include U.S. government-backed securities and corporate securities that are valued based upon observable inputs that

may

include benchmark yields, reported trades, broker/dealer quotes, issuer spreads,

two

-sided markets, benchmark securities, bids, offers and reference data including market research publications. The average remaining maturity of the Company’s Level

investments as of

December 31, 2017

is less than

months and all of these investments are rated by S&P and Moody’s at A or better. The Company recognizes transfers between levels of the fair value hierarchy as of the end of the reporting period. There were

transfers within the hierarchy during the years ended

December 31, 2017

2016.

Note 4 - Balance Sheet Detail

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Supplemental Balance Sheet Disclosures [Text Block]

NOTE

—BALANCE SHEET DETAIL

Inventories

Inventories consist of the following (in thousands):

	December 31,
	2017			2016*
Raw materials	$	19,160	$	9,072
Work in process		2,744		1,894
Finished goods		6,878		4,011
Total	$	28,782	$	14,977

The Raw materials balance in prior year was reclassified for consistency with current year.

Property and Equipment, net

Property, plant and equipment is recorded at cost less allowances for depreciation. The straight-line method of depreciation

is used for all property and equipment.

Property and equipment, net, consists of the following (in thousands):

	December 31,
	2017			2016
Leasehold improvements	$	640		$	652
Office equipment and furniture		2,370			2,973
Machinery and equipment		6,277			5,435
		9,287			9,060
Less: Accumulated depreciation		(7,191	)		(7,153	)
Total Property and equipment, net	$	2,096		$	1,907

Included in machinery and equipment are financed vehicles

used by the Company’s North American sales employees. As of

December 31, 2017

and

2016,

the gross capitalized value of the leased vehicles was

$1.6

million and

$1.4

million and the related accumulated depreciation was

$725,000

and

$492,000

respectively.

Goodwill and Other Intangible Assets

Goodwill and other intangible assets comprise a patent sublicense acquired from Palomar in

2006,

intangible assets and goodwill related to the acquisition of Iridex

’s aesthetic business unit, and, customer relationships in the Benelux countries acquired from a former distributor in

2013.

The components of intangible assets at

December 31, 2017

and

2016

were as follows (in thousands):

	Gross Carrying Amount		Accumulated Amortization & Impairment Amount		Net Amount
December 31, 2017
Patent sublicense	$	1,218	$	1,218	$	—
Customer relationship intangible related to acquisition		2,510		2,510		—
Other identified intangible assets related to acquisition		780		780		—
Other intangible		155		155		—
Goodwill		1,339		—		1,339
Total	$	6,002	$	4,663	$	1,339
December 31, 2016
Patent sublicense	$	1,218	$	1,218	$	—
Customer relationship intangible related to acquisition		2,510		2,508		2
Other identified intangible assets related to acquisition		780		780		—
Other intangible		155		155		—
Goodwill		1,339		—		1,339
Total	$	6,002	$	4,661	$	1,341

Amortization expense in the

201

2016,

and

2015

fiscal years for intangible assets was

$2,000,

$141,000,

and

$452,000,

respectively. Intangible assets were fully amortized and there were

additions as of

December 31, 2017.

Accrued Liabilities

Accrued liabilities consist of the following (in thousands):

	December 31,
	2017		2016
Accrued payroll and related expenses	$	12,567	$	9,036
Sales and marketing accruals		3,710		706
Accrued sales tax		2,920		2,373
Warranty liability		3,508		2,461
Other accrued liabilities		4,143		2,821
Total	$	26,848	$	17,397

Note 5 - Warranty and Service Contracts

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Product Warranty Disclosure [Text Block]

NOTE

—WARRANTY AND SERVICE CONTRACTS

The Company has a direct

field service organization in the U.S. Internationally, the Company provides direct service support through its wholly-owned subsidiaries in Australia, Belgium, Canada, France, Hong Kong, Japan, and Switzerland, as well as through

third

-party service providers in Spain and United Kingdom. In several other countries, where it does

not

have a direct presence, the Company provides service through a network of distributors and

third

-party service providers.

After the original warranty period, maintenance and

support are offered on a service contract basis or on a time and materials basis. The Company provides for the estimated cost to repair or replace products under warranty at the time of sale.

Warranty Accrual (in thousands)

	December 31,
	2017			2016
Balance at beginning of year	$	2,461		$	1,819
Add: Accruals for warranties issued during the year		7,583			5,375
Less: Settlements and expirations during the year		(6,536	)		(4,733	)
Balance at end of year	$	3,508		$	2,461

Deferred Service Contract Revenue (in thousands)

	December 31,
	2017			2016
Balance at beginning of year	$	9,431		$	10,469
Add: Payments received		14,369			12,344
Less: Revenue recognized		(13,081	)		(13,382	)
Balance at end of year	$	10,719		$	9,431

Costs incurred under service contracts in 201

7, 2016 and 2015 amounted to

$6.0

million,

$6.7

million, and

$6.2

million, respectively, and are recognized as incurred.

Note 6 - Stockholders' Equity, Stock Plans and Stock-based Compensation Expense

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

NOTE

—STOCKHOLDERS’ EQUITY, STOCK PLANS AND STOCK-BASED COMPENSATION EXPENSE

As of

December 31, 2017,

the Company had the following stock-based employee compensation plans:

2004

Equity Incentive Plan and

1998

Stock Plan

1998,

the Company adopted the

1998

Stock Plan,

1998

Plan, under which

4,650,000

shares of the Company’s common stock were reserved for issuance to employees, directors and consultants.

January

12,

2004,

the Board of Directors adopted the

2004

Equity Incentive Plan. A total of

1,750,000

shares of common stock were originally reserved for issuance pursuant to the

2004

Equity Incentive Plan. In addition, the shares reserved for issuance under the

2004

Equity Incentive Plan included shares reserved but un-issued under the

1998

Plan and shares returned to the

1998

Plan as the result of termination of options or the repurchase of shares. In

2012

the stockholders approved a “fungible share” provision whereby each full-value award issued under the

2004

Equity Incentive Plan results in a requirement to subtract

2.12

shares from the shares reserved under the Plan.

Options granted under the

1998

Plan and

2004

Equity Incentive Plan

may

be incentive stock options or non-statutory stock options. Stock purchase rights

may

also be granted under the

2004

Equity

Incentive Plan. Incentive stock options

may

only be granted to employees. The Board of Directors determines the period over which options become exercisable. Options granted under the Plan to employees generally vest over a

four

year term from the vesting commencement date and become exercisable

25%

on the

first

anniversary of the vesting commencement date and an additional

1/48th

on the last day of each calendar month until all of the shares have become exercisable. During

2013

and

2012

the officers of the Company were granted options that vest over a

three

year term at the rate of

one

third

on the

one

year anniversary of the vesting commencement date and

1/36th

thereafter. In

2014

the officers of the Company were granted RSUs and PSUs but were

not

granted any options. The contractual term of the options granted in

2013

and

2012

was

seven

years.

In accordance with the

2004

Equity Incentive Plan, prior to

2012,

the Company

’s non-employee directors were granted

$60,000

of grant date fair value, fully vested, stock awards annually on the date of the Company’s Annual Meeting of stockholders. Commencing with

2012,

the Company’s non-employee directors get

$60,000

of RSUs annually that cliff-vest on the

one

year anniversary of the grant date. In the years ended

December 31, 2017,

2016

and

2015,

the Company issued

21,605,

45,350

and

21,020

RSUs, respectively, to its non-employee directors. Included in the

2016

grants, was

6,500

RSUs granted to

one

of the Company's non-employee directors for consulting services to the Company, which vest over a period of

four

years from the grant date

In the years ended

December 31, 2017,

2016

and

2015

the Company

’s Board of Directors granted

270,707,

229,865

and

107,417

RSUs, respectively, to its executive officers and certain members of the Company’s management. The RSUs granted to the employees vest at the rate of

one

fourth

on the

one

-year anniversary of the grant date, and

one

fourth

in each of the subsequent

three

years. The annual RSUs granted to the executive officers vests at the rate of

one

third

on the

one

-year anniversary of the grant date, and

one

third

in each of the subsequent

two

years. In addition, on

December 15, 2017,

the Company’s Board granted

100,000

RSUs to the President and Chief Executive Officer, which vest according to the following schedule:

15%,

25%

and

45%

on the first, second,

third

and

fourth

anniversary of the grant date, respectively. The Company measured the fair market values of the underlying stock on the dates of grant and recognizes the stock-based compensation expense over the vesting period. On the vesting date, the Company issues fully-paid up common stock, net of stock withheld to settle the recipient’s minimum statutory tax liability.

In the years ended

December 31, 2017,

2016

and

2015

the Company

’s Board of Directors granted its executive officers and certain senior management employees

117,418,

204,976

and

74,667

of PSUs, respectively. Of the PSU’s granted in

2017,

104,500

vested over

months and

12,918

granted on

October 31, 2017

vested over

two

months. The PSUs granted in

2016

and

2015

vested over a period of

months and

8.5

months, respectively. All PSUs vesting was subject to the recipient’s continued service and achievement of pre-established goals that were operational (in

2017,

2016

and

2015

) and market-based (only in

2015

). The operational PSU goals were related to revenue growth, operating income improvement and specific product releases. The market-based goal was related to the Company’s stock price in

2015.

On the vest date of the PSUs, the Company issues fully-paid up common stock, based on the degree of achievement of the pre-established targets, net of the stock withheld to settle the recipient’s minimum statutory tax liability.

2004

Employee Stock Purchase Plan

January

12,

2004,

the Board of Directors adopted the

2004

Employee Stock Purchase Plan. Under the

2004

Employee Stock Purchase Plan, or

2004

ESPP, eligible employees are permitted to purchase common stock at a discount through payroll deductions. The

2004

ESPP offering and purchase periods are for approximately

six

months. The

2004

ESPP has an evergreen provision based on which shares of common stock eligible for purchase are increased on the

first

day of each fiscal year by an amount equal to the lesser of:

	i.	600,000 shares;
	ii.	2.0% of the outstanding shares of common stock on such date; or
	iii.	an amount as determined by the Board of Directors.

The Company

’s Board of Directors did

not

increase the shares available for future grant on

January 1, 2018,

2017

and

2016.

The price of the common stock purchased is the lower of

85%

of the fair market value of the common stock at the beginning or end of a

six

month offering period. In the years ended

December 31, 2017,

2016

and

2015,

under the

2004

ESPP, the Company issued

78,479,

79,922

and

55,872

shares, respectively. At

December 31, 2017,

691,584

shares remained available for future issuance.

Option Activity

Activity under the

1998

Plan and

2004

Equity Incentive Plan is summarized as follows:

				Options Outstanding
	Shares Available For Grant			Number of Shares			Weighted- Average Exercise Price		Weighted-Average Remaining Contractual Life (in years)		Aggregate Intrinsic Value (in $ millions ) (1)
Balances as of December 31, 2014		129,760			3,462,567		$	9.39		3.4	$	5.7
Additional shares reserved (2)		1,300,000			—
Options granted		(129,000	)		129,000		$	13.26
Options exercised		—			(1,141,904	)	$	9.20
Options cancelled (expired or forfeited)		300,866			(300,866	)	$	12.37
Stock awards granted		(430,580	)		—			—
Stock awards cancelled (expired or forfeited)		92,379			—			—
Balances as of December 31, 2015		1,263,425			2,148,797		$	9.31		3.4	$	7.9
Options granted		(162,000	)		162,000		$	11.55
Options exercised		—			(1,051,138	)	$	8.89
Options cancelled (expired or forfeited)		143,187			(143,187	)	$	12.93
Stock awards granted		(1,018,005	)		—			—
Stock awards cancelled (expired or forfeited)		495,050			—			—
Balances as of December 31, 201 6		721,657			1,116,472		$	9.56		3.7	$	8.7
Options granted		(278,250	)		278,250		$	31.00
Options exercised		—			(488,398	)	$	8.96
Options cancelled (expired or forfeited)		66,405			(66,405	)	$	16.54
Stock awards granted		(873,881	)		—			—
Stock awards cancelled (expired or forfeited)		258,935			—			—
Additional shares reserved (3)		1,600,000			—			—
Balances as of December 31, 2017		1,494,866			839,919		$	16.46		3.99	$	24.4
Exercisable as of December 31, 2017					467,794		$	9.53		2.74	$	16.8
Vested and expected to vest, net of estimated forfeitures, as of December 31, 2017					789,779		$	15.61		3.86	$	23.6

( 1 )	Based on the closing stock price of the Company ’s stock of $ 45.3 5 on December 31 , 2017 , $ 17.35 on December 30 , 2016 , $ 12.79 on December 31 2015 and $10. 68 on December 31 , 2014 .
( 2 )	Approved by stockholders in 2015.
( 3 )	Approved by the board of directors and stockholders in 2017.

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the aggregate difference between the Company

’s closing stock price on the last trading day of the fiscal year and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on

December 31, 2017.

The aggregate intrinsic amount changes based on the fair market value of the Company’s common stock. Total intrinsic value of options exercised in

2017,

2016

and

2015

was

$8.0

million,

$3.6

million, and

$5.1

million, respectively. The options outstanding and exercisable at

December 31, 2017

were in the following exercise price ranges:

				Options Outstanding		Options Exercisable
Range of Exercise Prices				Number Outstanding	Weighted-Average Remaining Contractual Life (in years)	Number Outstanding	Weighted-Average Exercise Price
	$6.88	–	$7.15	84,739	1.43	84,739	$	6.92
	$7.44	–	$8.72	15,978	0.87	15,978		8.30
		$8.80		141,956	2.45	141,956		8.80
	$9.28	–	$9.97	95,535	3.24	73,402		9.69
	$10.03	–	$10.86	88,044	4.46	51,517		10.38
	$10.90	–	$11.67	91,021	4.22	50,356		11.36
	$11.98	-	$17.90	109,896	4.66	49,033		13.36
	$18.55	–	$25.70	88,500	5.87	813		18.55
		$39.30		77,000	6.83	—		—
		$47.40		47,250	6.96	—		—
	$6.88	–	$47.40	839,919	4.11	467,794	$	9.53

Stock Awards (RSU and PSU) Activity Table

Information with respect to RSUs and PSUs

activity is as follows (in thousands):

	Number of Shares			Weighted - Average Grant- Date Fair Value		Aggregate Fair Value (1) (in thousands)			Aggregate Intrinsic Value (2) (in thousands)
Outstanding at December 31, 2014		434,321		$	9.31				$	4,639
Granted		203,104		$	14.81
Vested (3)		(222,220	)	$	11.79	$	3,285	(4)
Forfeited		(43,575	)	$	9.09
Outstanding at December 31, 2015		371,630		$	12.39				$	4,753
Granted		480,191		$	10.80
Vested (3)		(172,990	)	$	12.56	$	1,906	(5)
Forfeited		(233,514	)	$	11.36
Outstanding at December 31, 2016		445,317		$	11.15				$	7,726
Granted		412,208		$	28.74
Vested (3)		(224,799	)	$	10.91	$	5,168	(6)
Forfeited		(122,139	)	$	13.56
Outstanding at December 31, 2017		510,587		$	24.88				$	23,155

( 1 )	Represents the value of the Company ’s stock on the date that the restricted stock units and performance stock units vest.
( 2 )	Based on the closing stock price of the Company ’s stock of $ 45.35 on December 31, 201 7 , $ 17.35 on December 31, 2016 , $ 12.79 on December 31 , 2015 and $10. 68 on December 30 , 2014 .
( 3 )	The number of restricted stock units vested includes shares that the Company withheld on behalf of the employees to satisfy the statutory tax withholding requirements.
( 4 )	On the grant date, the fair value for these vested awards was $ 2.6 million .
( 5 )	On the grant date, the fair value for these vested awards was $2. 2 million.
( 6 )	On the grant date, the fair value for these vested awards was $2. 5 million.

Stock-Based Compensation

Stock-based compensation expense for the year

s ended

December 31, 2017,

2016

and

2015

was as follows (in thousands):

	Year Ended December 31,
	2017		201 6		2015
Stock options	$	815	$	989	$	1,438
RSUs		1,813		1,508		1,297
PSUs		2,093		967		1,167
ESPP		389		249		182
Total stock-based compensation expense	$	5,110	$	3,713	$	4,084

As of

December 31,

201

the unrecognized compensation cost, net of expected forfeitures, was

$11.5

million for stock options and stock awards, which will be recognized over an estimated weighted-average remaining amortization period of

2.77

years. For the ESPP, the unrecognized compensation cost, net of expected forfeitures, was

$252,000,

which will be recognized over an estimated weighted-average amortization period

0.33

years.

The Company issues new shares of common stock upon the exercise of stock options, vesting of RSUs and PSUs, and the issuance of ESPP shares. The amount of cash received from these issuances, net of taxes

withheld and paid, in

2017,

2016

and

2015

was

$4.0

million,

$9.5

million and

$10.1

million.

Total stock-based compensation expense recognized during the year ended

December 31, 2017,

2016

and

2015

was recorded in the Consolidated Statement of Operations as follows (in thousands):

	Year Ended December 31,
	2017		2016		2015
Cost of revenue	$	660	$	341	$	447
Sales and marketing
Employee		1,629		1,179		1,054
Non-employee		13		-		-
Research and development		936		596		662
General and administrative		1,872		1,597		1,921
Total stock-based compensation expense	$	5,110	$	3,713	$	4,084

Valuation Assumptions and Fair Value of Stock Options and ESPP Grants

The Company uses the Black-Scholes option pricing model

to estimate the fair value of options granted under its equity incentive plans and rights to acquire stock granted under its employee stock purchase plan. The Company based the weighted average estimated values of employee stock option grants and rights granted under the employee stock purchase plan, as well as the weighted average assumptions used in calculating these values, on estimates at the date of grant, as follows:

	Stock Options									Stock Purchase Plan
	2017			2016			2015			2017			2016			2015
Expected term (in years) (1)		3.70			3.83			3.24			0.50			0.50			0.50
Risk-free interest rate (2)		1.73	%		1.09	%		0.90	%		1.14	%		0.46	%		0.17	%
Volatility (3)		40	%		40	%		30	%		42	%		39	%		36	%
Dividend yield (4)		—	%		—	%		—	%		—	%		—	%		—	%

Weighted average estimated fair value at grant date	$	9.98		$	3.72		$	4.78		$	8.21		$	3.22		$	3.51

( 1 )	The expected term represents the period during which the Company ’s stock-based awards are expected to be outstanding. The estimated term is based on historical experience of similar awards, giving consideration to the contractual terms of the awards, vesting requirements, and expectation of future employee behavior, including post-vesting terminations. The expected term of g roups of employees that have similar historical exercise patterns has been considered separately for valuation purposes.
( 2 )	The risk-free interest rate is based on U.S. Treasury debt securities with maturities close to the expected term of the option as of the date of grant.
( 3 )	Estimated volatility is based on historica l volatility. The Company also considers implied volatility when there is sufficient volume of freely traded options with comparable terms and exercise prices in the open market.
( 4 )	The Company has not historically issued any dividends and does not expect to do so in the foreseeable future.

The Company periodically estimates forfeiture rates based on its historical experience within separate groups of employees and adjusts the stock-based payment expense accordingly. The forfeiture rates used in

2017

ranged from

13%.

Non-Employee Stock-Based Compensation

Stock-based compensation expense related to stock options granted to non-employees is recognized based on the fair value of the stock options, determined using the Black-Scholes option pricing model, as they are earned. The awards generally vest over the time period the Company expects to receive services from the nonemployee. The Company revalues stock options granted to non-employees at each reporting date as the underlying equity instruments vest.

The Company granted

7,745

stock options and

2,478

RSUs to

one

non-employee during the year ended

December 31, 2017

and

zero

shares during the year ended

2016

and

2015.

The

7,745

stock options vests over

years at

25%

on the

first

anniversary of the grant date and

1/48

each month thereafter. The

2,478

RSUs vests over

years at

25%

each anniversary of the grant date. These RSUs and stock options were granted in exchange for consulting services to be rendered and are measured and recognized as they are earned.

Stock Awards Withholdings

For Stock Awards granted to employees, the number of shares issued on the date the Stock Awards vest is net of t

he tax withholding requirements paid on behalf of the employees. In

2017,

2016

and

2015,

the Company withheld

64,490,

56,157,

and

68,101

shares of common stock, respectively, to satisfy its employees’ tax obligations of

$1,469,000,

$619,000

and

$1.0

million, respectively. The Company paid this amount in cash to the appropriate taxing authorities. Although shares withheld are

not

issued, they are treated as common stock repurchases for accounting and disclosure purposes, as they reduce the number of shares that would have been issued upon vesting.

Stock Repurchase Program

As of

December 31, 2014,

there was

$10.0

million authorized for the repurchase of the Company's common stock under its

Stock Repurchase Program. On

February 18, 2015, the Company's

Board of Directors approved the expansion of its Stock Repurchase Program from

$10

million to

$40

million and on

February 8, 2016 the

Board of Directors approved the expansion of the Company's Stock Repurchase Program by an additional

$10

million. In the years ended

December 31, 2016

and

2015,

the Company repurchased

455,311

and

2,818,038

shares of its common stock for approximately

$4.9

million and

$40.0

million

, respectively.

February 13, 2017

and

July 28, 2017, the Company's

Board of Directors approved the expansion of its Stock Repurchase Program by an additional

million and

$25

million

, respectively. In the year ended

December 31, 2017, the Company

repurchased

1,022,602

shares of its common stock for approximately

$35.2

million. As of

December 31, 2017

the Company fully utilized all remaining authorized funds under the Company’s Stock Repurchase Program

Note 8 - Income Taxes

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE

—INCOME TAXES

The Company files income tax returns in the U.S. federal and various state and local jurisdictions and foreign jurisdictions. For financial statement reporting purposes, income (loss) before provision for income taxes inclu

de the following (in thousands):

	Year Ended December 31,
	2017		2016		2015
U.S.	$	11,203	$	2,207	$	(4,588	)
International		757		513		360
Income (loss) before income taxes	$	11,960	$	2,720	$	(4,228	)

The federal and statement income tax provision (benefit) is summarized as follows (in thousands):

	Year Ended December 31,
	2017			2016			2015
Current:
Federal	$	148		$	—		$	(7	)
State		71			16			23
International		511			131			218
Total Current		730			147			234
Deferred:
Federal		(17,393	)		(24	)		33
State		(1,348	)		(2	)		—
International		(22	)		22			(55	)
Total deferred tax benefit		(18,763	)		(4	)		(22	)
Total tax expense (benefit)	$	(18,033	)	$	143		$	212

Deferred income taxes reflect the net tax effects of (a) temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, an

d (b) operating losses and tax credit carryforwards.

The

tax effects of significant items comprising the Company’s deferred taxes after

December 31, 2017 and 2016

are as follows (in thousands):

	December 31,
	2017			2016
Deferred Tax Assets:
Net operating loss carryforwards	$	8,604		$	15,487
Stock-based compensation		1,179			1,486
Other accruals and reserves		1,663			2,160
Credits		11,781			9,006
Foreign		399			377
Accrued warranty		847			890
Depreciation and amortization		1,592			2,627
Other		303			95
Deferred tax asset before valuation allowance		26,368			32,128
Valuation allowance		(7,242	)		(31,751	)
Deferred tax asset after valuation allowance		19,126			377
Deferred tax liability on goodwill		(71	)		(85	)
Net d eferred tax asset	$	19,055		$	292

Net operating losses and tax credit carryforwards as of

December 31, 2017 were

as follows

(in thousands):

	Amount		Expiration Years
Net operating losses, federal	$	34,700		2029-2035
Net operating losses, state		20,773		Various
Tax credits, federal		6,109		2024-2036
Tax credits, state	$	6,872		Various

The

effective tax rate of the Company’s provision (benefit) for income taxes differs from the federal statutory rate as follows:

	Year Ended December 31,
	2017			2016			2015
Statutory rate		34.00	%		34.00	%		34.00	%
State tax		(5.59	)		(14.56	)		1.94
General Business Credits		(2.72	)		(9.25	)		15.92
Stock-based compensation		(21.55	)		14.36			(19.19	)
Foreign Rate Differential		(0.50	)		(0.16	)		(1.47	)
Change in Federal Tax Rate		60.98			—			—
Other *		0.65			(2.15	)		(1.35	)
Meals and Entertainment*		2.15			7.56			(3.23	)
Valuation allowance		(218.17	)		(24.57	)		(31.63	)
Effective tax rate		(150.75	) %		5.23	%		(5.01	)%

Other balance in

2016

and

2015

was reclassified for consistency with current year.

The Company assesses the

ability to realize its net deferred tax assets by evaluating all available evidence, both positive and negative, including (

) cumulative results of operations in recent years, (

) sources of recent income (loss), (

) estimates of future taxable income and (

) the length of net operating loss and tax credit carryforward periods. Such assessment is required on a jurisdiction-by-jurisdiction basis. In making such assessment, significant weight is given to evidence that can be objectively verified.

As of

December 31,

2017

and

2016,

the Company

’s deferred tax assets were primarily comprised of U.S. Net Operating Loss (“NOL”), tax credit and other deferred tax assets relating to book-to-tax temporary differences. From the

third

quarter of

2009,

the Company had determined that it was more likely than

not

that all of the net deferred tax assets in the U.S. jurisdictions would

not

be realized. As a result, the Company had recorded and maintained a full valuation allowance against those net deferred tax assets to reduce them to their estimated net realizable value through

September 30, 2017

As of

December 31, 2017,

the Com

pany determined that it is more likely than

not

that a portion of the net deferred tax assets will be realized for federal and U.S. states, except California, and therefore recorded a net valuation allowance release of

$26.3

million. As a result, the Company continued to maintain a full valuation allowance against the net deferred tax assets relating to the states of California and for the R&D credit carry forwards for the state of Massachusetts.

As of each reporting date, the Company

’s management considers new evidence, both positive and negative, that could impact management’s view with regard to future realization of deferred tax assets. As of

December 31, 2017,

in part because in the current year, the Company achieved

three

years of cumulative pre-tax income in the U.S. federal tax jurisdiction, management determined that sufficient positive evidence exists as of

December 31, 2017,

to conclude that it is more likely than

not

that deferred taxes of

$26.3

million are realizable, and therefore, reduced the valuation allowance accordingly.

December 31, 2017,

the Company had approximately

$34.7

million and

$20.8

million of federal and state net operating loss carryforwards, respectively, available to offset future taxable income. The federal and state net operat

ing loss carryforwards, if

not

utilized will generally begin to expire in

2029

through

2035.

At December

31,

2017,

the Company had research and development tax credits available to offset federal, California and Massachusetts tax liabilities in the amount of

$6.1

million,

$6.6

million and

$0.3

million, respectively. Federal credits will begin to expire in

2024,

California state tax credits have

expiration, and Massachusetts tax credits begin to expire in

2021.

The utilization of NOL carryforwards and tax credits

may

be subject to a substantial annual limitation due to the ownership change limitations set forth in Internal Revenue Code Sections

382

and

383

and similar state provisions. Such annual limitation could result in the expiration of net operating loss and tax credit carryforwards before utilization.

Uncertain Tax Positions

The Company establishes reserves fo

r uncertain tax positions based on the largest amount that is more-likely-than-

not

to be sustained. An uncertain income tax position will

not

be recognized if it has less than a

50%

likelihood of being sustained. The Company performs a

two

-step approach to recognizing and measuring uncertain tax positions

. The

first

step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than

not

that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The

second

step is to measure the tax benefit as the largest amount that is more than

50%

likely of being realized upon settlement. Although the Company believes it has adequately reserved for its uncertain tax positions,

assurance can be given that the final tax outcome of these matters will

not

be different. The Company adjusts these reserves in light of changing facts and circumstances, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will impact the provision for income taxes in the period in which such determination is made. The provision for income taxes includes the impact of reserve provisions and changes to reserves that are considered appropriate, as well as the related net interest and penalties.

The Company files U.S., state, and foreign income tax returns in jurisdictions with varying statutes of limitat

ions. The

2005

through

2017

tax years generally remain subject to examination by U.S. federal and California state tax authorities due to the Company’s net operating loss and credit carryforwards. For significant foreign jurisdictions, the

2011

through

2017

tax years generally remain subject to examination by their respective tax authorities.

The following table summarizes the activity related to the Company's unrecognized tax benefits for the year ended

December

201

and

December 2016 (

in thousands):

	2017		2016
Beginning of the year unrecognized tax benefits	$	707	$	651
Increases related to prior year tax positions		643		—
Increases related to current year tax positions		169		56
End of the year unrecognized tax benefits	$	1,519	$	707

It is the Company

’s policy to recognize interest and penalties related to income tax matters in income tax expense. As of

December 31, 2017,

the Company had accrued interest and penalties of $

97,298

related to uncertain tax positions.

2017

Tax Act

December 22, 2017,

the Tax Cuts and Jobs Act of

2017

(the

“2017

Tax Act”) was signed into law making significant changes to the Code. The

2017

Tax Act makes broad and complex changes to the U.S. tax code, including, but

not

limited to, (i) reducing the U.S. federal statutory tax rate from

35%

21%;

(ii) requiring companies to pay a

one

-time transition tax on certain un-repatriated earnings of foreign subsidiaries; (iii) generally eliminating U.S federal income taxes on dividends from foreign subsidiaries; (iv) requiring a current inclusion in U.S. federal taxable income of certain earnings of controlled foreign corporations; (v) eliminating the corporate alternative minimum tax (AMT) and changing how existing AMT credits can be realized; (vi) creating the base erosion anti-abuse tax (BEAT), a new minimum tax; (vii) creating a tax on global intangible low-taxed income (GILTI) of foreign subsidiaries; (viii) creating a new limitation on deductible interest expense; (ix) changing rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after

December 31, 2017;

and (

) modifying the officer

’s compensation limitation.

December 2017,

the SEC issued Staff Accounting Bulletin

No.

118

(“SAB

118”

), which provided a measurement period of up to

one

year from the enactment date of the

2017

Tax Act for companies to complete the accounting for the

2017

Tax Act and its related impacts. The income tax effects of the

2017

Tax Act for which the accounting is incomplete include: the impact of the transition tax, the revaluation of deferred tax assets and liabilities to reflect the

21%

corporate tax rate, and the impact to the aforementioned items on state income taxes. The Company has made reasonable provisional estimates for each of the items applicable, however, these estimates

may

be affected by other analyses related to the

2017

Tax Act, including but

not

limited to, any deferred adjustments related to the filing of its

2017

federal and state income tax returns and further guidance yet to be issued.

ASC

740

requires companies to recognize the effect of tax law changes in the period of enactment, accordingly the effects must be recognized on companies’ calendar year-end financial statements, even though the effective date for most provisions is

January 1, 2018.

As a result the Company re-measured its net U.S. deferred tax assets at the

21%

future tax rate recorded a net decrease of approximately

$7.3

million.

December 31, 2017,

according to the

2017

Tax Act for estimating the Company's foreign undistributed earnings, the Company estimated an aggregate deficit in "accumulated earnings and profits," which is how foreign undistributed earnings are determined for the

one

-time transition tax and for U.S. income tax purposes. The deficit was primarily a result of

2017

stock option exercises by foreign employees, which exceeded current year and prior year foreign earnings. As a result, the

one

-time transition tax did

not

have a significant impact on the Company’s

2017

tax provision and there was

undistributed accumulated earnings and profits as of

December 31, 2017.

The Company's current effective tax r

ate does

not

include foreign taxes on undistributed profits of foreign subsidiaries. These earnings could become subject to incremental foreign withholding, should these earnings be actually remitted to the U.S. The Company's future effective tax rates could be adversely affected by earnings being lower in countries where the Company has lower statutory rates and being higher in countries where the Company has higher statutory rates, or by changes in tax laws, accounting principles, interpretations thereof, and due to changes in the valuation allowance of the Company's U.S. deferred tax assets.

The Company

considered the impact of the Act on its need for valuation allowance assessment. The Company’s ASC

740

assertion remains unchanged and continues to assert that it will indefinitely reinvest its undistributed earnings.

Note 9 - Net Income (Loss) Per Share

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Earnings Per Share [Text Block]

NOTE

—NET INCOME (LOSS) PER SHARE

Basic net income (loss) per share is computed using the weighted-average number of shares outstanding during the period. In periods of net income, diluted shares outstanding include the dilutive effect of in-the-money equity awards (stock options, rest

ricted stock units, performance stock units and employee stock purchase plan contributions), which is calculated based on the average share price for each fiscal period using the treasury stock method. In accordance with ASC

718,

the assumed proceeds under the treasury stock method include the average unrecognized compensation expense of in-the-money stock options and restricted stock units. This results in the assumed buyback of additional shares, thereby reducing the dilutive impact of equity awards

Dil

uted earnings per share is the same as basic earnings per share for the periods in which the Company had a net loss because the inclusion of outstanding common stock equivalents would be anti-dilutive.

The following table sets forth the computation of basic and diluted net income (loss) and the weighted average number of shares used in computing basic and diluted net income (loss) per share (in thousands, except per share data):

	Year Ended December 31,
	2017		2016		2015
Numerator:
Net Income (loss)	$	29,993	$	2,577	$	(4,440	)
Denominator:
Weighted-average shares outstanding in basic calculation		13,873		13,225		13,960
Add: dilutive effect of potential common shares		855		528		—
Weighted-average shares used in computing diluted net income per share		14,728		13,753		13,960
Net income (loss) per share:
Net income (loss) per share, basic	$	2.16	$	0.19	$	(0.32	)
Net income (loss) per share, diluted	$	2.04	$	0.19	$	(0.32	)

he following number of weighted shares outstanding, prior to the application of the treasury stock method, were excluded from the computation of diluted net income (loss) per common share for the years presented because including them would have had an anti-dilutive effect (in thousands):

	Year Ended December 31,
	201 7		201 6		201 5
Options to purchase common stock		42		220		2,575
Restricted stock units		9		24		296
Employee stock purchase plan shares		—		—		93
Performance stock units		—		—		24
Total		51		244		2,988

Note 10 - Defined Contribution Plan	12 Months Ended
Note 10 - Defined Contribution Plan	Dec. 31, 2017
Notes to Financial Statements
Pension and Other Postretirement Benefits Disclosure [Text Block]	NOTE 10 —DEFINED CONTRIBUTION PLAN In the U.S., the Company has an employee savings plan (“ 401 (k) Plan”) that qualifies as a deferred salary arrangement under Section 401 (k) of the Internal Revenue Code. Eligible employees may make voluntary contributions to the 401 (k) Plan up to 100% of their annual compensation, subject to statutory annual limitations. In 2017, 2016 and 2015, the Company made discretionary contributions under the 401 (k) Plan of $288,000, $262,000 and $244,000 respectively. For the Company ’s Japanese subsidiary, a discretionary employee retirement plan has been established. In addition, for some of the Company’s other foreign subsidiaries, the Company deposits funds with insurance companies, third -party trustees, or into government-managed accounts consistent with the requirements of local laws. The Company has fully funded or accrued for its obligations as of December 31, 2017, and the related expense for each of the three years then ended was not significant.

Note 11 - Segment Information and Revenue by Geograpy and Products

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

NOTE

—SEGMENT INFORMATION AND REVENUE BY GEOGRAPY AND PRODUCTS

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision making group, in deciding how to allocate resources a

nd in assessing performance. The Company’s chief operating decision maker, as defined under the FASB’s ASC

280

guidance, is its Chief Executive Officer. The Company has

one

business activity and there are

segment managers who are held accountable for operations. Accordingly, the Company has a single reportable segment structure. All of the Company’s principal operations and decision-making functions are located in the United States. The Company’s chief operating decision maker viewed its operations, managed its business, and used

one

measurement of profitability for the

one

operating segment – which sells aesthetic medical equipment and services, and distributes skincare products, to qualified medical practitioners. Substantially all of the Company’s long-lived assets are located in the U.S.

The following table summarizes revenue by geographic region, based on the location of the customer, and by product category (in thousands):

	Year Ended December 31,
	201 7		201 6		201 5
Revenue mix by geography:
United States	$	94,581	$	65,513	$	48,916
Japan		17,264		14,727		11,504
Asia, excluding Japan		13,719		13,445		15,596
Europe		8,317		7,539		7,728
Rest of the world		17,612		16,832		11,017
Consolidated total	$	151,493	$	118,056	$	94,761

Revenue mix by product category:
Products	$	125,883	$	92,721	$	71,223
Hand Piece Refills		2,435		2,498		2,910
Skincare		4,342		3,809		2,889
Total product revenue		132,660		99,028		77,022
Service		18,833		19,028		17,739
Consolidated total	$	151,493	$	118,056	$	94,761

Note 12 - Commitments and Contingencies

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

NOTE

—COMMITMENTS AND CONTINGENCIES

Facility Leases

As of

December 31,

2017,

the Company was committed to minimum lease payments for facilities and other leased assets under long-term non-cancelable operating leases as follows (in thousands):

Year Ending December 31,	Amount
201 8	$	2,891
201 9		2,871
2020		2,815
2021		2,515
202 2		2,495
2023 and thereafter		214
Future minimum lease payments	$	13,801

Gross rent expense recognized in the years ended

December 31, 2017,

2016 and 2015 was $1.5 million, $1.6 million and $1.5 million, respectively.

Vehicle Leases

As of

December 31,

201

the Company was committed to future minimum lease payments for vehicles leased under long-term non-cancelable capital leases as follows (in thousands):

Year Ending December 31,	Amount
201 8	$	472
201 9		381
20 20		104
Future minimum lease payments	$	957

Purchase Commitments

The Company maintains certain open inventory purchase commitments with its suppliers

to ensure a smooth and continuous supply for key components. The Company’s liability in these purchase commitments is generally restricted to a forecasted time-horizon as agreed between the parties. These forecasted time-horizons can vary among different suppliers. The Company’s open inventory purchase commitments with its suppliers were

not

significant at

December 31, 2017

Indemnifications

In the normal course of business, the Company enters into agreements that contain a variety of representations, w

arranties, and indemnification obligations. For example, the Company has entered into indemnification agreements with each of its directors and executive officers and certain key employees. The Company’s exposure under its various indemnification obligations is unknown and

not

reasonably estimable as they involve future claims that

may

be made against the Company. As such, the Company has

not

accrued any amounts for such obligations.

Contingencies

The Company is named from time to time as a party to

other legal proceeds product liability, commercial disputes, employee disputes, and contractual lawsuits in the normal course of business. A liability and related charge are recorded to earnings in the Company’s consolidated financial statements for legal contingencies when the loss is considered probable and the amount can be reasonably estimated. The assessment is re-evaluated each accounting period and is based on all available information, including discussion with outside legal counsel. If a reasonable estimate of a known or probable loss cannot be made, but a range of probable losses can be estimated, the low-end of the range of losses is recognized if

amount within the range is a better estimate than any other. If a material loss is reasonably possible, but

not

probable and can be reasonably estimated, the estimated loss or range of loss is disclosed in the notes to the consolidated financial statements. The Company expenses legal fees as incurred. As of

December 31, 2017

and

2016,

the Company had accrued

$91,000

and

$138,

000,

respectively, related to

various pending contractual and product liability lawsuits.

The Company does

not

believe that a material loss in excess of accrued amounts is reasonably possible.

Certain of these lawsuits and claims are described in further detail below. It is

not

possible to predict what the outcome of these matters will

be and the Company cannot guarantee that any resolution will be reached on commercially reasonable terms, if at all.

January, 2018,

the Company and Nicholas Brown were served with a complaint by Cynosure, Inc. (Plaintiff) alleging

that Nicholas Brown working for the Company violates certain non-compete provisions of an agreement he was a party to while employed by Plaintiff. The Plaintiff alleges causes of action for breach of contract by Nicholas Brown and intentional interference with contractual relations by the Company.

Nicholas Brown was hired by the Company as a sales representative in the Boston area in

November 2017.

Prior to being hired, he worked for the Plaintiff in Boston, also as a sales representative. The Company believes the non-compete

provisions of his agreement are unenforceable as a matter of Massachusetts law.

The Company has engaged counsel and

intends to defend this matter vigorously. As of

December 31, 2017,

based on available information regarding this matter, the Company is unable to reasonably assess the ultimate outcome of this case or determine an estimate

Note 13 - Related Parties	12 Months Ended
Note 13 - Related Parties	Dec. 31, 2017
Notes to Financial Statements
Related Party Transactions Disclosure [Text Block]	NOTE 1 3 —RELATED PARTIES In 2017 and 2016, the Company paid $196,000 and $182,100, respectively, to Mr. Dave Gollnick for product development, clinical sales and marketing support services. In addition, as of December 31, 2016, the Company granted Mr. Gollnick 6,500 RSUs with a grant-date fair value of $87,100, that vest over three years at the rate of 33.33% per year on each of the three anniversaries from the vesting commencement date of October 28, 2016, subject to him continuing to provide consulting and/ or board services to the Company. The Company’s Audit Committee approved the extension of Mr. Gollnick’s consulting agreement through December 31, 2018 at the rate of $200 per hour for a maximum of 40 hours per week. The Company signed an agreement with a real estate firm, T3 Advisors, effective September 2017, to assist the Company in real estate related issues (including strategic planning and search for new facilities). One of T3 Ad visors’ Senior Vice President "Mr. Austin Barrett" is related to Greg Barrett – a member of the Company’s board of directors. In 2017, the Company paid $38 ,000 to T3 Advisors for Real estate brokerage services.

Supplementary Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Quarterly Financial Information [Text Block]

SUPPLEMENT

ARY FINANCIAL DATA (UNAUDITED)

(In thousands, except per share amounts)

Quarter ended:	Dec. 31, 2017			Sept. 30, 2017			June 30, 2017		March 31, 2017			Dec. 31, 201 6			Sept. 30, 201 6		June 30, 201 6			March 31, 201 6
Net revenue	$	47,632		$	38,173		$	36,389	$	29,299		$	37,875		$	30,281	$	27,477		$	22,423
Cost of revenue		20,299			15,963			15,343		13,778			15,962			12,538		11,472			9,949
Gross profit		27,333			22,210			21,046		15,521			21,913			17,743		16,005			12,474
Operating expenses:
Sales and marketing		15,362			13,148			12,787		10,773			11,561			10,574		10,712			8,716
Research and development		3,481			3,467			2,981		2,945			2,897			2,914		2,712			2,709
General and administrative		3,947			3,379			3,548		3,216			3,010			2,716		3,997			3,220
Lease termination income		-			(4,000	)		-		-			-			-		-			-
Total operating expenses		22,790			15,994			19,316		16,934			17,468			16,204		17,421			14,645
Income (loss) from operations		4,543			6,216			1,730		(1,413	)		4,445			1,539		(1,416	)		(2,171	)
Interest and other income, net		138			197			276		273			(204	)		166		217			144
Income (loss) before income taxes		4,681			6,413			2,006		(1,140	)		4,241			1,705		(1,199	)		(2,027	)
Income tax provision (benefit)		(18,199	)		225			59		(118	)		28			61		30			24
Net income (loss)	$	22,880		$	6,188		$	1,947	$	(1,022	)	$	4,213		$	1,644	$	(1,229	)	$	(2,051	)

Net income (loss) per share —basic	$	1.66		$	0.44		$	0.14	$	(0.07	)	$	0.31		$	0.12	$	(0.09	)	$	(0.16	)
Net income (loss) per share —diluted	$	1.57		$	0.42		$	0.13	$	(0.07	)	$	0.30		$	0.12	$	(0.09	)	$	(0.16	)

Weighted average number of shares used in per share calculations:
Basic		13,744			13,973			13,935		13,840			13,591			13,163		13,131			13,010
Diluted		14,569			14,767			14,629		13,840			14,201			13,544		13,131			13,010

Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Schedule of Valuation and Qualifying Accounts Disclosure [Text Block]

SCHEDULE

CUTERA, INC.

VALUATION AND QUALIFYING ACCOUNTS

(in thousands)

For the Years Ended

December 31,

201

and

201

	Balance at Beginning of Year		Additions		Deductions		Balance at End of Year
Deferred tax assets valuation allowance
Year ended December 31, 2017	$	31,751	$	617	$	25,126	$	7,242
Year ended December 31, 2016	$	27,616	$	6,755	$	2,620	$	31,751
Year ended December 31, 2015	$	26,046	$	3,327	$	1,757	$	27,616

	Balance at Beginning of Year		Additions		Deductions		Balance at End of Year
Allowance for doubtful accounts receivable
Year ended December 31, 2017	$	21	$	14	$	26	$	9
Year ended December 31, 2016	$	4	$	21	$	4	$	21
Year ended December 31, 2015	$	—	$	4	$	—	$	4

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Consolidation, Subsidiaries or Other Investments, Consolidated Entities, Policy [Policy Text Block]

Principles of Consolidation

The Consolidated Financial Statements include the accounts of the Company and

its wholly owned subsidiaries. All inter-company transactions and balances have been eliminated in consolidation.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

The preparation of Consolidated Financial Statements in conformity with generally accepted accounting principles in the Un

On an ongoing basis, the Company evaluates their estimates, including those related to warranty obligation,

Risks and Uncertainties, Policy [Policy Text Block]

Risks and Uncertainties

The Company's future results of operations involve a number of risks and uncert

ainties. Factors that could affect the Company's future operating results and cause actual results to vary materially from expectations include, but are

not

may

withdraw its market clearance or take other action. The Company's manufacturers and suppliers

may

Cash and Cash Equivalents Marketable Investments and Long-term Investments [Policy Text Block]

Cash and Cash Equivalents, and Marketable Investments

The Company invests it

three

months or less from date of purchase are classified as cash equivalents; all highly liquid investments with stated maturities of greater than

three

The Company determines the appropriate classification of its investments in marketable securities at the time of pur

one

Fair Value Measurement, Policy [Policy Text Block]

Fair Value Measurements

The fair value hierarchy distin

guishes between (

) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (

) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of

three

broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level

) and the lowest priority to unobservable inputs (Level

). The

three

levels of the fair value hierarchy are described below in accordance to ASC

820:

	●	Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities.
	●	Level 2: Directly or indirectly observable inputs as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active. Level 2 also i ncludes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models, such as interest rates and volatility factors, are corroborated by readily observable data from actively quoted markets for substantially the full term of the financial instrument.
	●	Level 3: Unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions.

In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inp

uts and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value.

Marketable Securities, Policy [Policy Text Block]

Impairment of Marketable Investments

After determining the fair value of available-for-sales debt

other-than-temporary impairments in the years ended

December 31, 2017,

2016,

and

2015

Allowances for Sales Returns and Doubtful Accounts [Policy Text Block]

Allowance for Sales Returns and Doubtful Accounts

The allowance for sales returns is based on the Company

may

affect a customer’s ability to pay.

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of risk consist principally of cash, cash equivalents, marketable investments and accounts receivable. The Company

’s cash and cash equivalents are primarily invested in deposits and money market accounts with

three

major financial institutions in the U.S. In addition, the Company has operating cash balances in banks in each of the international locations in which it operates. Deposits in these banks

may

not

experienced any losses on its deposits of cash and cash equivalents.

The Company invests in debt instruments, including bonds of the U.S. Government, its agencies and municipalities. The Company has also invested in other high grade investments

eighteen

months.

Accounts receivable are recorded net of an allowance for

. As of

December 31, 2017

and

2016,

there was

one

customer who represented

12%

of the Company’s net accounts receivable. During the years ended

December 31, 2017,

2016,

and

2015,

domestic revenue accounted for

62%,

55%,

and

52%,

respectively, of total revenue, while international revenue accounted for

38%,

45%,

and

48%,

respectively, of total revenue.

single customer represented more than

10%

of total revenue for any of the years ended

December 31, 2017,

2016,

and

2015

Inventory, Policy [Policy Text Block]

Inventories

Inventories are stated at the lower of cost and net realizable value, cost being determined on a standard cost basis which approximates actual cost on a

first

-in,

first

-out basis.

The Company includes

demonstration units within inventories. Demonstration units are carried at cost and amortized over an estimated economic life of

two

As of

December 31, 2017

and

2016,

demonstration inventories, net of accumulated depreciation, included in finished goods inventory balance was

$1.

million and

$2.4

million, respectively.

Property, Plant and Equipment, Policy [Policy Text Block]

Property and Equipment

Property and equipment ar

e stated at cost, net of accumulated depreciation. Depreciation recognized is recognized on a straight-line basis over the estimated useful lives of the assets, generally as follows:

		Useful Lives
Leasehold improvements		Lesser of useful life or term of lease
Office equipment and furniture (in years)		3
Machinery and equipment (in years)		3

Upon sale or retirement of property and equipment, the costs and related accumulated depreciation and amortization are removed from the balance sheet

and the resulting gain or loss is reflected in operating expenses. Maintenance and repairs are charged to operations as incurred.

Depreciation expense related to property and equipment for

201

2016

and

2015,

was

$1.0

million

, $

0.8

million and $

0.7

million respectively. Amortization expense for vehicles leased under capital leases is included in depreciation expense.

Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block]

Goodwill and

Other

Intangible Assets

Goodwill and intangible assets with indefinite useful lives are

not

amortized, but are tested

for impairment, applying a fair-value based test, at least annually during the

fourth

fiscal quarter, or if circumstances indicate their value

may

longer be recoverable. Goodwill represents the excess of the purchase price over the fair value of net tangible and identifiable intangible assets. The Company continues to operate in

one

segment, which is considered to be the sole reporting unit and, therefore, goodwill was tested for impairment at the enterprise level. As of

December 31, 2017,

there has been

impairment of goodwill. All acquired intangible assets have been fully amortized as of

December 31, 2017.

Standard Product Warranty, Policy [Policy Text Block]

Warranty Obligations

The Company provides a standard

one

-year warranty on all systems sold to end-customers. Warranty coverage provided is for

labor and parts necessary to repair the systems during the warranty period. For sales to distributors, the Company generally provides a

month warranty for parts only, with labor being provided to the end customer by the distributor.

The Company

To determine the estimated warranty reserve, the Company utilizes actual service

records to calculate the average service expense per system and applies this to the equivalent number of units exposed under warranty. The Company updates these estimated charges every quarter.

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

Products revenue is recognized when

title and risk of ownership has been transferred, provided that:

	●	Persuasive evidence of an arrangement exists;
	●	The price is fixed or determinable;
	●	Delivery has occurred or services have been rendered; and
	●	Collectability is reasonably a ssured.

collectability is

not

reasonably assured, the Company recognizes revenue upon receipt of cash payment. Sales to customers and distributors do

not

Multiple-element

rrangements

A multiple-element arrangement includes the sale of

one

or more tangible product offerings with

one

or more associated services offerings, each of which are individually considered separate units of accounting. The Company determined that its multiple-ele

ment arrangements are generally comprised of the following elements that are recognized as separate units of accounting: Product, service contracts

training, and in some cases, marketing support and installation.

their relative selling prices in accordance with the Financial Accounting Standards (“FASB”) Accounting Standards Codification (“ASC”)

605

25.

Because the Company has neither vendor-specific objective evidence (“VSOE”) nor

third

not

limited to, features and functionality of the system, geographies, type of customer and market conditions

With respect to the sale of its

earlier generation of the

truSculpt

product, the Company includes unlimited refills as part of the

truSculpt

standard warranty and the Company does

not

account for the

truSculpt

warranty as a separate deliverable under the multiple-element arrangement revenue guidance. Upon a

truSculpt

sale, the Company recognizes the estimated costs which will be incurred under the warranty obligation in Products cost of revenue. In

May 2017,

the Company launched a more advanced version of its body system called

truSculpt

ustomers are required to purchase hand piece refills as needed on a

truSculpt

. Revenue from the sale of such refills is recorded as Product revenue in the period in which such sales are made.

Customer Marketing Arrangements

The Company has

Service Revenue

The Company also offers customers extended service contracts. Revenue under service contracts is recognized on a straight-line basis over the per

iod of the applicable service contract.

Revenue from services performed in the absence of a

service contract, including installation and training revenue, is recognized when the related services are performed and collectability is reasonably assured

Service revenue billed on a time and material basis, from customers whose systems are

not

under a service contact, is recognized as the services are provided. Service revenue for the years ended

December 31,

201

2016,

and

2015

was

$18.8

million,

$19.0

million, and

$17.7

million, respectively.

Bill and Hold Arrangement

2017

the Company segregated certain products for

one

order at the request of a customer for a limited period of time at a

third

The Company recognized revenue of

$938,000

for a bill-and-hold transaction in

2017.

There were

such transactions in

2016

and

2015.

Cost of Sales, Policy [Policy Text Block]

Cost of Revenue

Cost of revenue consists primarily of material, finished and semi-finished products purchased from

third

-party manufacturers, labor, stock-based compensation expenses, overhead inv

olved in the Company's internal manufacturing processes, technology license amortization and royalties, costs associated with product warranties and any inventory or intangible write-downs.

The Company's system sales include a control console, universal graphic us

Titan

and

truSculpt

, the Company capitalizes the expended hand piece as inventory at the estimated fair value. Cost of revenue includes the costs incurred to refurbish hand pieces.

Research and Development Expense, Policy [Policy Text Block]

Research and Development Expenditures

Research and development costs are expensed as incurred and include costs related to research, design, development, testing

of products, salaries, benefits and other headcount related costs, facilities, material,

third

party contractors, regulatory affairs, clinical and development costs

Advertising Costs, Policy [Policy Text Block]

Advertising Costs

Advertising costs are included as part of sales and marketing expens

e and are expensed as incurred. Advertising expenses for

2017,

2016

and

2015

were

$1.8

million,

$1.3

million and

$1.2

million, respectively.

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Stock-based Compensation

The Company accounts for share-based compensation costs in accordance with the accounting standards for share-based compensation, which require that all share-based payments to employees

and non-employees be recognized in the consolidated statements of operations based on their fair values.

●

The Company accounts for all stock options awarded to non-employees at the fair value of the consideration received or the fair

value of the equity instrument issued, as calculated using the Black-Scholes model. The Company subjects stock options granted to non-employees to periodic revaluation at

each reporting date as the underlying equity instruments vest

	●	The fair value of Restricted Stock Units ("RSUs") is based on the stock price on the grant date using a single-award approach. The RSUs are subject to a service vesting condition and are recognized on a straight-line basis over the requisite service period. For RSUs to non-employees, the Company recognizes expense on an accelerated attribution method and these equity awards are re-measured at fair value at the end of each reporting period, with the changes in fair value recorded to stock-based compensation expense in the period in which the change occurs.
	●	The fair value of Performance Stock Units (“PSUs”) that have operational measurement goals, are measured at the market price of the Company’s stock on the date of grant. PSUs with market-based measurement goals are valued using the Monte-Carlo simulation option-pricing model. The Monte-Carlo simulation option-pricing model uses the same input assumptions as the Black-Scholes model, however, it further incorporates into the fair-value determination the possibility that the market condition may not be satisfied. Stock-based compensation expense for market-based PSU awards is recognized regardless of whether the market condition is satisfied, provided that the requisite service has been provided. For PSUs provided to non-employees, the Company recognizes expense on an accelerated attribution method and these equity awards are re-measured at fair value at the end of each reporting period, with the changes in fair value recorded to stock-based compensation expense in the period in which the change occurs.

Cash flows resulting from the tax benefits due to tax de

Income Tax, Policy [Policy Text Block]

Income Taxes

The Company account for

For deferred tax assets which are

not

subject to a valuation allowance, the Company has determined that its future taxable i

not

probable.

The Company recognizes deferred tax assets to the extent that the Company believes these assets are more likely than n

not

Valuation allowances are established when necessary to reduce deferred income tax assets to amounts that the Company

believes are more likely than

not

three

year cumulative profit, estimated timing of future deductions and benefits represented by the deferred tax assets, and its forecasts of future earnings, the latter

two

of which involve the exercise of significant judgment.

The Company

establishes reserves for uncertain tax positions in accordance with Income Taxes subtopic of ASC

740

on the basis of a

two

-step process whereby (

) it determines whether it is more likely than

not

that the tax positions will be sustained on the basis of the technical merits of the position and (

) for those tax positions that meet the more-likely-than-

not

recognition threshold, it recognize the largest amount of tax benefit that is more than

percent likely to be realized upon ultimate settlement with the related tax authority

The impact of an uncertain income tax position on income tax expense must be recognized at the largest amount that is more

likely than

not

to be sustained. An uncertain income tax position will

not

be recognized if it has less than a

50%

likelihood of being sustained. The Company has provided taxes and related interest and penalties due for potential adjustments that

may

Comprehensive Income, Policy [Policy Text Block]

mprehensive

Income (

Loss

)

Comprehensive

Foreign Currency Transactions and Translations Policy [Policy Text Block]

Foreign Currency

The U.S. Dollar is the functional currency of the Company

three

years ended

December 31, 2016.

The effect of exchange rate changes on cash and cash equivalents was insignificant for each of the

three

years presented in the period ended

December 31, 2017.

Segment Reporting, Policy [Policy Text Block]

Segments

The Company operates in

one

segment. Management uses

one

measuremen

t of profitability and does

not

segregate its business for internal reporting. As of

December 31, 2017

and

2016,

substantially all long-lived assets were maintained in the U.S. See Note

for details relating to revenue by geography.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pr

onouncements

Not

Yet Adopted

New Revenue Standard

May 2014,

the Financial Accounting Standards Board (“

FASB”) issued ASU

No.

2014

09,

2014

first

quarter of fiscal year

2018.

The New Revenue

(

)

identify the contract(s) with a customer;

(

)

identify the performance obligation in the contract;

(

)

determine the transaction price;

(

)

allocate the transaction price to the

performance obligations in the contract; and

(

)

recognize revenue when (or as) the entity satisfies a performance obligation.

The Company will adopt the New Revenue Standard in the

first

quarter of fiscal year

2018

using the modified retrospective method.

Upon adoption, the Company expects to record an adjustment to retained earnings for the following items in the

first

quarter of

2018:

●

Adjustment to its deferred revenue balance for the differences in the amount of revenue recognition for the Company

’s revenue streams as a result of allocation of revenue based on standalone selling prices to the Company’s various performance obligations.

●

Adjustment for capitalizing the incremental contract acquisition costs

●

Adjustment for accru

ing financing costs for multi-year post-warranty service for customers who pay more than

one

year in advance of receiving the service. The Company will estimate interest expense for such advance payment under the New Revenue Standard going forward.

Impact of the adoption of the New Revenue Standard is expected to result in a net increase in the Company's retained earnings by approximately

$4.8

million -

$5.5

million, majority of which relates to the capitalization of contract acquisition costs. The Company's evaluation of the adjustment will be completed in the

first

quarter of fiscal year

2018.

In pr

first

quarter of

2018.

These expanded disclosures will include quantitative and qualitative disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers.

Pursuant to ASC paragraphs

606

through

and ASC paragraph

460

the Company will continue to account for standard warranty coverage as it has historically.

The New Revenue Standard is principle based and interpretation of those principles

may

vary from company to company based on their unique circumstances. It is possible that interpretation, industry practice, and guidance

may

evolve as companies and the ac

first

quarter of fiscal year

2018.

As the Company completes its evaluation of this new standard, new information

may

Other Accounting

Pronouncements

February 2016,

the FASB issued ASU

No.

2016

02,

Leases (Topic

842

first

quarter of fiscal year

2019

’s customers finance purchases of its system products through

third

party lease companies and

not

directly with the Company. The Company does

not

believe that the new standard will change customer buying patterns or behaviors for its products. The Company will adopt the new standard effective

January 1, 2019.

The Company expects that upon adoption, right-of-use assets and lease liabilities will be recognized in the balance sheet in amounts that will be material.

August 2016,

the FASB issued ASU

2016

15,

Statement of Cash Flows (Topic

230

), which intends to reduce diversity in practice in how certain cash receipts and cash payments are classified in the statement of cash flows. This guidance will be effective for the Company in the

first

quarter of

2018.

The Company is still assessing the impact of the adoption of this guidance to the consolidated financial statements

October 2016,

the FASB issued ASU

No.

2016

16,

Income Taxes (Topic

740

): Intr

first

quarter of

2018.

This ASU is required to be adopted using the modified retrospective approach, with a cumulative catch-up adjustment to retained earnings in the period of adoption. The Company does

not

believe that adopting this ASU will have a material impact on the consolidated financial Statements.

November 2016,

the FASB issued ASU

2016

18,

Statement of Cash Flows (Topic

320

), which amended the guidance on the classification and presentation of restricted cash in the statement of cash flow. The

first

quarter of

2018

and is required to be adopted retrospectively. The Company does

not

expect that the adoption of this guidance will have a material impact on its consolidated financial statements.

January 2017,

the FASB clarified its guidance to simplify the measurement of goodwill by eliminating

the Step

first

quarter of fiscal year

2021.

The amendment is required to be adopted prospectively. Early adoption is permitted. The Company does

not

expect that the adoption of this guidance will have a material impact on its consolidated financial statements.

Recently Adopte

d Accounting Standards

January 2017, the Company

adopted Accounting Standards Update (“

ASU”)

2015

11,

Simplifying the Measurement of Inventory

material impact on the Company's financial condition, results of operations or cash flows as a result of adoption.

Note 3 - Investment Securities (Tables)

12 Months Ended

Dec. 31, 2017

Notes Tables

Investment [Table Text Block]

	December 31,
	2017		2016
Cash and cash equivalents:
Cash	$	14,058	$	6,672
Cash equivalents:
Money market funds		126		6,053
Commercial paper		—		1,050
Total cash and cash equivalents		14,184		13,775

Marketable securities:
U.S. government notes		11,870		8,398
U.S. government agencies		—		3,916
Municipal securities		200		1,325
Commercial paper		1,833		12,299
Corporate debt securities		7,825		14,361
Total marketable securities		21,728		40,299

Total cash, cash equivalents and marketable securities	$	35,912	$	54,074

Unrealized Gain (Loss) on Investments [Table Text Block]

December 31, 2017	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Market Value
Cash and cash equivalents	$	14,184	$	—	$	—		$	14,184

Marketable investments
U.S. government notes		11,885		—		(15	)		11,870
U.S. government agencies		—		—		—			—
Municipal securities		201		—		(1	)		200
Commercial paper		1,836		—		(3	)		1,833
Corporate debt securities		7,838		2		(15	)		7,825
Total marketable securities		21,760		2		(34	)		21,728

Total cash, cash equivalents and marketable securities	$	35,944	$	2	$	(34	)	$	35,912

December 31, 201 6	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Market Value
Cash and cash equivalents	$	13,775	$	—	$	—		$	13,775

Marketable investments
U.S. government notes		8,403		4		(9	)		8,398
U.S. government agencies		3,918		—		(2	)		3,916
Municipal securities		1,325		—		—			1,325
Commercial paper		12,299		2		(2	)		12,299
Corporate debt securities		14,366		3		(8	)		14,361
Total marketable securities		40,311		9		(21	)		40,299

Total cash, cash equivalents and marketable securities	$	54,086	$	9	$	(21	)	$	54,074

Investments Classified by Contractual Maturity Date [Table Text Block]

	Amount
Due in less than one year (fiscal year 201 8)	$	19,109
Due in 1 to 3 years (fiscal year 2019)		2,619
Total marketable securities	$	21,728

Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]

December 31, 2017	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	126	$	—	$	—	$	126
Commercial paper		—		—		—		—
Short term marketable investments:
Available-for-sale securities		—		21,728		—		21,728
Total assets at fair value	$	126	$	21,728	$	—	$	21,854

December 31, 2016	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	6,053	$	—	$	—	$	6,053
Commercial paper		—		1,050		—		1,050
Short term marketable investments:
Available-for-sale securities		—		40,299		—		40,299
Total assets at fair value	$	6,053	$	41,349	$	—	$	47,402

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

Note 4 - Balance Sheet Detail (Tables)

12 Months Ended

Dec. 31, 2017

Notes Tables

Schedule of Inventory, Current [Table Text Block]

	December 31,
	2017			2016*
Raw materials	$	19,160	$	9,072
Work in process		2,744		1,894
Finished goods		6,878		4,011
Total	$	28,782	$	14,977

The Raw materials balance in prior year was reclassified for consistency with current year.

Property, Plant and Equipment [Table Text Block]

	December 31,
	2017			2016
Leasehold improvements	$	640		$	652
Office equipment and furniture		2,370			2,973
Machinery and equipment		6,277			5,435
		9,287			9,060
Less: Accumulated depreciation		(7,191	)		(7,153	)
Total Property and equipment, net	$	2,096		$	1,907

Schedule of Intangible Assets and Goodwill [Table Text Block]

	Gross Carrying Amount		Accumulated Amortization & Impairment Amount		Net Amount
December 31, 2017
Patent sublicense	$	1,218	$	1,218	$	—
Customer relationship intangible related to acquisition		2,510		2,510		—
Other identified intangible assets related to acquisition		780		780		—
Other intangible		155		155		—
Goodwill		1,339		—		1,339
Total	$	6,002	$	4,663	$	1,339
December 31, 2016
Patent sublicense	$	1,218	$	1,218	$	—
Customer relationship intangible related to acquisition		2,510		2,508		2
Other identified intangible assets related to acquisition		780		780		—
Other intangible		155		155		—
Goodwill		1,339		—		1,339
Total	$	6,002	$	4,661	$	1,341

Schedule of Accrued Liabilities [Table Text Block]

	December 31,
	2017		2016
Accrued payroll and related expenses	$	12,567	$	9,036
Sales and marketing accruals		3,710		706
Accrued sales tax		2,920		2,373
Warranty liability		3,508		2,461
Other accrued liabilities		4,143		2,821
Total	$	26,848	$	17,397

Note 5 - Warranty and Service Contracts (Tables)

12 Months Ended

Dec. 31, 2017

Notes Tables

Schedule of Product Warranty Liability [Table Text Block]

	December 31,
	2017			2016
Balance at beginning of year	$	2,461		$	1,819
Add: Accruals for warranties issued during the year		7,583			5,375
Less: Settlements and expirations during the year		(6,536	)		(4,733	)
Balance at end of year	$	3,508		$	2,461

Deferred Revenue, by Arrangement, Disclosure [Table Text Block]

	December 31,
	2017			2016
Balance at beginning of year	$	9,431		$	10,469
Add: Payments received		14,369			12,344
Less: Revenue recognized		(13,081	)		(13,382	)
Balance at end of year	$	10,719		$	9,431

Costs incurred under service contracts in 201

7, 2016 and 2015 amounted to $6.0 million, $6.7 million, and $6.2 million, respectively, and are recognized as incurred.

Note 6 - Stockholders' Equity, Stock Plans and Stock-based Compensation Expense (Tables)

12 Months Ended

Dec. 31, 2017

Notes Tables

Share-based Compensation, Stock Options, Activity [Table Text Block]

				Options Outstanding
	Shares Available For Grant			Number of Shares			Weighted- Average Exercise Price		Weighted-Average Remaining Contractual Life (in years)		Aggregate Intrinsic Value (in $ millions ) (1)
Balances as of December 31, 2014		129,760			3,462,567		$	9.39		3.4	$	5.7
Additional shares reserved (2)		1,300,000			—
Options granted		(129,000	)		129,000		$	13.26
Options exercised		—			(1,141,904	)	$	9.20
Options cancelled (expired or forfeited)		300,866			(300,866	)	$	12.37
Stock awards granted		(430,580	)		—			—
Stock awards cancelled (expired or forfeited)		92,379			—			—
Balances as of December 31, 2015		1,263,425			2,148,797		$	9.31		3.4	$	7.9
Options granted		(162,000	)		162,000		$	11.55
Options exercised		—			(1,051,138	)	$	8.89
Options cancelled (expired or forfeited)		143,187			(143,187	)	$	12.93
Stock awards granted		(1,018,005	)		—			—
Stock awards cancelled (expired or forfeited)		495,050			—			—
Balances as of December 31, 201 6		721,657			1,116,472		$	9.56		3.7	$	8.7
Options granted		(278,250	)		278,250		$	31.00
Options exercised		—			(488,398	)	$	8.96
Options cancelled (expired or forfeited)		66,405			(66,405	)	$	16.54
Stock awards granted		(873,881	)		—			—
Stock awards cancelled (expired or forfeited)		258,935			—			—
Additional shares reserved (3)		1,600,000			—			—
Balances as of December 31, 2017		1,494,866			839,919		$	16.46		3.99	$	24.4
Exercisable as of December 31, 2017					467,794		$	9.53		2.74	$	16.8
Vested and expected to vest, net of estimated forfeitures, as of December 31, 2017					789,779		$	15.61		3.86	$	23.6

Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]

				Options Outstanding		Options Exercisable
Range of Exercise Prices				Number Outstanding	Weighted-Average Remaining Contractual Life (in years)	Number Outstanding	Weighted-Average Exercise Price
	$6.88	–	$7.15	84,739	1.43	84,739	$	6.92
	$7.44	–	$8.72	15,978	0.87	15,978		8.30
		$8.80		141,956	2.45	141,956		8.80
	$9.28	–	$9.97	95,535	3.24	73,402		9.69
	$10.03	–	$10.86	88,044	4.46	51,517		10.38
	$10.90	–	$11.67	91,021	4.22	50,356		11.36
	$11.98	-	$17.90	109,896	4.66	49,033		13.36
	$18.55	–	$25.70	88,500	5.87	813		18.55
		$39.30		77,000	6.83	—		—
		$47.40		47,250	6.96	—		—
	$6.88	–	$47.40	839,919	4.11	467,794	$	9.53

Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block]

	Number of Shares			Weighted - Average Grant- Date Fair Value		Aggregate Fair Value (1) (in thousands)			Aggregate Intrinsic Value (2) (in thousands)
Outstanding at December 31, 2014		434,321		$	9.31				$	4,639
Granted		203,104		$	14.81
Vested (3)		(222,220	)	$	11.79	$	3,285	(4)
Forfeited		(43,575	)	$	9.09
Outstanding at December 31, 2015		371,630		$	12.39				$	4,753
Granted		480,191		$	10.80
Vested (3)		(172,990	)	$	12.56	$	1,906	(5)
Forfeited		(233,514	)	$	11.36
Outstanding at December 31, 2016		445,317		$	11.15				$	7,726
Granted		412,208		$	28.74
Vested (3)		(224,799	)	$	10.91	$	5,168	(6)
Forfeited		(122,139	)	$	13.56
Outstanding at December 31, 2017		510,587		$	24.88				$	23,155

Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block]

	Year Ended December 31,
	2017		201 6		2015
Stock options	$	815	$	989	$	1,438
RSUs		1,813		1,508		1,297
PSUs		2,093		967		1,167
ESPP		389		249		182
Total stock-based compensation expense	$	5,110	$	3,713	$	4,084

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]

	Year Ended December 31,
	2017		2016		2015
Cost of revenue	$	660	$	341	$	447
Sales and marketing
Employee		1,629		1,179		1,054
Non-employee		13		-		-
Research and development		936		596		662
General and administrative		1,872		1,597		1,921
Total stock-based compensation expense	$	5,110	$	3,713	$	4,084

Valuation Assumptions and Fair Value of Stock Options and ESPP Grants

Valuation Assumptions and Fair Value of Stock Options and ESPP Grants [Table Text Block]

	Stock Options									Stock Purchase Plan
	2017			2016			2015			2017			2016			2015
Expected term (in years) (1)		3.70			3.83			3.24			0.50			0.50			0.50
Risk-free interest rate (2)		1.73	%		1.09	%		0.90	%		1.14	%		0.46	%		0.17	%
Volatility (3)		40	%		40	%		30	%		42	%		39	%		36	%
Dividend yield (4)		—	%		—	%		—	%		—	%		—	%		—	%

Weighted average estimated fair value at grant date	$	9.98		$	3.72		$	4.78		$	8.21		$	3.22		$	3.51

Note 8 - Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Notes Tables

Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]

	Year Ended December 31,
	2017		2016		2015
U.S.	$	11,203	$	2,207	$	(4,588	)
International		757		513		360
Income (loss) before income taxes	$	11,960	$	2,720	$	(4,228	)

The federal and statement income tax provision (benefit) is summarized as follows (in thousands):

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

	Year Ended December 31,
	2017			2016			2015
Current:
Federal	$	148		$	—		$	(7	)
State		71			16			23
International		511			131			218
Total Current		730			147			234
Deferred:
Federal		(17,393	)		(24	)		33
State		(1,348	)		(2	)		—
International		(22	)		22			(55	)
Total deferred tax benefit		(18,763	)		(4	)		(22	)
Total tax expense (benefit)	$	(18,033	)	$	143		$	212

d (b) operating losses and tax credit carryforwards.

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

	December 31,
	2017			2016
Deferred Tax Assets:
Net operating loss carryforwards	$	8,604		$	15,487
Stock-based compensation		1,179			1,486
Other accruals and reserves		1,663			2,160
Credits		11,781			9,006
Foreign		399			377
Accrued warranty		847			890
Depreciation and amortization		1,592			2,627
Other		303			95
Deferred tax asset before valuation allowance		26,368			32,128
Valuation allowance		(7,242	)		(31,751	)
Deferred tax asset after valuation allowance		19,126			377
Deferred tax liability on goodwill		(71	)		(85	)
Net d eferred tax asset	$	19,055		$	292

Summary of Operating Loss Carryforwards and Tax Credit Carryforwards [Table Text Block]

	Amount		Expiration Years
Net operating losses, federal	$	34,700		2029-2035
Net operating losses, state		20,773		Various
Tax credits, federal		6,109		2024-2036
Tax credits, state	$	6,872		Various

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

	Year Ended December 31,
	2017			2016			2015
Statutory rate		34.00	%		34.00	%		34.00	%
State tax		(5.59	)		(14.56	)		1.94
General Business Credits		(2.72	)		(9.25	)		15.92
Stock-based compensation		(21.55	)		14.36			(19.19	)
Foreign Rate Differential		(0.50	)		(0.16	)		(1.47	)
Change in Federal Tax Rate		60.98			—			—
Other *		0.65			(2.15	)		(1.35	)
Meals and Entertainment*		2.15			7.56			(3.23	)
Valuation allowance		(218.17	)		(24.57	)		(31.63	)
Effective tax rate		(150.75	) %		5.23	%		(5.01	)%

Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]

	2017		2016
Beginning of the year unrecognized tax benefits	$	707	$	651
Increases related to prior year tax positions		643		—
Increases related to current year tax positions		169		56
End of the year unrecognized tax benefits	$	1,519	$	707

It is the Company

’s policy to recognize interest and penalties related to income tax matters in income tax expense. As of

December 31, 2017,

the Company had accrued interest and penalties of $97,298 related to uncertain tax positions.

Note 9 - Net Income (Loss) Per Share (Tables)

12 Months Ended

Dec. 31, 2017

Notes Tables

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Year Ended December 31,
	2017		2016		2015
Numerator:
Net Income (loss)	$	29,993	$	2,577	$	(4,440	)
Denominator:
Weighted-average shares outstanding in basic calculation		13,873		13,225		13,960
Add: dilutive effect of potential common shares		855		528		—
Weighted-average shares used in computing diluted net income per share		14,728		13,753		13,960
Net income (loss) per share:
Net income (loss) per share, basic	$	2.16	$	0.19	$	(0.32	)
Net income (loss) per share, diluted	$	2.04	$	0.19	$	(0.32	)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]

	Year Ended December 31,
	201 7		201 6		201 5
Options to purchase common stock		42		220		2,575
Restricted stock units		9		24		296
Employee stock purchase plan shares		—		—		93
Performance stock units		—		—		24
Total		51		244		2,988

Note 11 - Segment Information and Revenue by Geograpy and Products (Tables)

12 Months Ended

Dec. 31, 2017

Notes Tables

Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block]

	Year Ended December 31,
	201 7		201 6		201 5
Revenue mix by geography:
United States	$	94,581	$	65,513	$	48,916
Japan		17,264		14,727		11,504
Asia, excluding Japan		13,719		13,445		15,596
Europe		8,317		7,539		7,728
Rest of the world		17,612		16,832		11,017
Consolidated total	$	151,493	$	118,056	$	94,761

Revenue mix by product category:
Products	$	125,883	$	92,721	$	71,223
Hand Piece Refills		2,435		2,498		2,910
Skincare		4,342		3,809		2,889
Total product revenue		132,660		99,028		77,022
Service		18,833		19,028		17,739
Consolidated total	$	151,493	$	118,056	$	94,761

Note 12 - Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2017

Notes Tables

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

Year Ending December 31,	Amount
201 8	$	2,891
201 9		2,871
2020		2,815
2021		2,515
202 2		2,495
2023 and thereafter		214
Future minimum lease payments	$	13,801

Gross rent expense recognized in the years ended

December 31, 2017,

2016 and 2015 was $1.5 million, $1.6 million and $1.5 million, respectively.

Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block]

Year Ending December 31,	Amount
201 8	$	472
201 9		381
20 20		104
Future minimum lease payments	$	957

Purchase Commitments

Supplementary Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2017

Notes Tables

Quarterly Financial Information [Table Text Block]

Quarter ended:	Dec. 31, 2017			Sept. 30, 2017			June 30, 2017		March 31, 2017			Dec. 31, 201 6			Sept. 30, 201 6		June 30, 201 6			March 31, 201 6
Net revenue	$	47,632		$	38,173		$	36,389	$	29,299		$	37,875		$	30,281	$	27,477		$	22,423
Cost of revenue		20,299			15,963			15,343		13,778			15,962			12,538		11,472			9,949
Gross profit		27,333			22,210			21,046		15,521			21,913			17,743		16,005			12,474
Operating expenses:
Sales and marketing		15,362			13,148			12,787		10,773			11,561			10,574		10,712			8,716
Research and development		3,481			3,467			2,981		2,945			2,897			2,914		2,712			2,709
General and administrative		3,947			3,379			3,548		3,216			3,010			2,716		3,997			3,220
Lease termination income		-			(4,000	)		-		-			-			-		-			-
Total operating expenses		22,790			15,994			19,316		16,934			17,468			16,204		17,421			14,645
Income (loss) from operations		4,543			6,216			1,730		(1,413	)		4,445			1,539		(1,416	)		(2,171	)
Interest and other income, net		138			197			276		273			(204	)		166		217			144
Income (loss) before income taxes		4,681			6,413			2,006		(1,140	)		4,241			1,705		(1,199	)		(2,027	)
Income tax provision (benefit)		(18,199	)		225			59		(118	)		28			61		30			24
Net income (loss)	$	22,880		$	6,188		$	1,947	$	(1,022	)	$	4,213		$	1,644	$	(1,229	)	$	(2,051	)

Net income (loss) per share —basic	$	1.66		$	0.44		$	0.14	$	(0.07	)	$	0.31		$	0.12	$	(0.09	)	$	(0.16	)
Net income (loss) per share —diluted	$	1.57		$	0.42		$	0.13	$	(0.07	)	$	0.30		$	0.12	$	(0.09	)	$	(0.16	)

Weighted average number of shares used in per share calculations:
Basic		13,744			13,973			13,935		13,840			13,591			13,163		13,131			13,010
Diluted		14,569			14,767			14,629		13,840			14,201			13,544		13,131			13,010

Note 2 - Summary of Significant Accounting Policies (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities	$ 0	$ 0	$ 0
Inventories Estimated Useful Lives	2 years
Inventory, Finished Goods, Gross	$ 1,900,000	2,400,000
Depreciation	1,000,000	800,000	700,000
Impairment of Long-Lived Assets Held-for-use	0
Sales Revenue, Services, Net	18,833,000	19,028,000	17,739,000
Advertising Expense	$ 1,800,000	1,300,000	1,200,000
Number of Operating Segments	1
Bill and Hold Arrangement [Member]
Recognition of Deferred Revenue	$ 938,000	$ 0	$ 0
Minimum [Member] \| Retained Earnings [Member] \| Accounting Standards Update 2014-09 [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	4,800,000
Maximum [Member] \| Retained Earnings [Member] \| Accounting Standards Update 2014-09 [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	$ 5,500,000
Distributors [Member] \| Minimum [Member]
Standard Warranty Period	1 year 60 days
Distributors [Member] \| Maximum [Member]
Standard Warranty Period	1 year 120 days
Customer Concentration Risk [Member] \| Accounts Receivable [Member]
Concentration Risk, Percentage	12.00%	12.00%
Geographic Concentration Risk [Member] \| Sales Revenue, Net [Member] \| UNITED STATES
Concentration Risk, Percentage	62.00%	55.00%	52.00%
Geographic Concentration Risk [Member] \| Sales Revenue, Net [Member] \| Outside the United States [Member]
Concentration Risk, Percentage	38.00%	45.00%	48.00%

Note 3 - Investment Securities - Cash, Cash Equivalents and Marketable Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Cash and cash equivalents:
Cash	$ 14,058	$ 6,672
Cash equivalents	14,184	13,775
Marketable securities:
Marketable securities	21,728	40,299
Total cash, cash equivalents and marketable securities	35,912	54,074
US Treasury and Government [Member]
Marketable securities:
Marketable securities	11,870	8,398
US Government Agencies Debt Securities [Member]
Marketable securities:
Marketable securities		3,916
US States and Political Subdivisions Debt Securities [Member]
Marketable securities:
Marketable securities	200	1,325
Commercial Paper, Not Included with Cash and Cash Equivalents [Member]
Marketable securities:
Marketable securities	1,833	12,299
Corporate Debt Securities [Member]
Marketable securities:
Marketable securities	7,825	14,361
Money Market Funds [Member]
Cash and cash equivalents:
Cash equivalents	126	6,053
Commercial Paper [Member]
Cash and cash equivalents:
Cash equivalents		$ 1,050

Note 3 - Investment Securities - Unrealized Gains and Losses Related to Marketable Investments (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash and cash equivalents, Amortized Cost	$ 14,184	$ 13,775	$ 10,868	$ 9,803
Cash and cash equivalents, Fair Market Value	14,184	13,775
Marketable investments, Amortized Cost	21,760	40,311
Marketable investments, Gross Unrealized Gains	2	9
Marketable investments, Gross Unrealized Losses	(34)	(21)
Marketable investments, Fair Market Value	21,728	40,299
Marketable investments, Gross Unrealized Losses	34	21
Marketable investments, Amortized Cost	35,944	54,086
Marketable investments, Fair Market Value	35,912	54,074
US Treasury and Government [Member]
Marketable investments, Amortized Cost	11,885	8,403
Marketable investments, Gross Unrealized Gains		4
Marketable investments, Gross Unrealized Losses	(15)	(9)
Marketable investments, Fair Market Value	11,870	8,398
Marketable investments, Gross Unrealized Losses	15	9
US Government Agencies Debt Securities [Member]
Marketable investments, Amortized Cost		3,918
Marketable investments, Gross Unrealized Gains
Marketable investments, Gross Unrealized Losses		(2)
Marketable investments, Fair Market Value		3,916
Marketable investments, Gross Unrealized Losses		2
US States and Political Subdivisions Debt Securities [Member]
Marketable investments, Amortized Cost	201	1,325
Marketable investments, Gross Unrealized Gains
Marketable investments, Gross Unrealized Losses	(1)
Marketable investments, Fair Market Value	200	1,325
Marketable investments, Gross Unrealized Losses	1
Commercial Paper, Not Included with Cash and Cash Equivalents [Member]
Marketable investments, Amortized Cost	1,836	12,299
Marketable investments, Gross Unrealized Gains		2
Marketable investments, Gross Unrealized Losses	(3)	(2)
Marketable investments, Fair Market Value	1,833	12,299
Marketable investments, Gross Unrealized Losses	3	2
Corporate Debt Securities [Member]
Marketable investments, Amortized Cost	7,838	14,366
Marketable investments, Gross Unrealized Gains	2	3
Marketable investments, Gross Unrealized Losses	(15)	(8)
Marketable investments, Fair Market Value	7,825	14,361
Marketable investments, Gross Unrealized Losses	$ 15	$ 8

Note 3 - Investment Securities - Maturities of Available-for-sale Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Due in less than one year (fiscal year 2018)	$ 19,109
Due in 1 to 3 years (fiscal year 2019)	2,619
Total marketable securities	$ 21,728	$ 40,299

Note 3 - Investment Securities - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Cash equivalents	$ 14,184	$ 13,775
Available-for-sale securities	21,728	40,299
Fair Value, Measurements, Recurring [Member]
Available-for-sale securities	21,728	40,299
Total assets at fair value	21,854	47,402
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member]
Available-for-sale securities
Total assets at fair value	126	6,053
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 2 [Member]
Available-for-sale securities	21,728	40,299
Total assets at fair value	21,728	41,349
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 3 [Member]
Available-for-sale securities
Total assets at fair value
Money Market Funds [Member] \| Fair Value, Measurements, Recurring [Member]
Cash equivalents	126	6,053
Money Market Funds [Member] \| Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member]
Cash equivalents	126	6,053
Money Market Funds [Member] \| Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 2 [Member]
Cash equivalents
Money Market Funds [Member] \| Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 3 [Member]
Cash equivalents
Commercial Paper [Member] \| Fair Value, Measurements, Recurring [Member]
Cash equivalents		1,050
Commercial Paper [Member] \| Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member]
Cash equivalents
Commercial Paper [Member] \| Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 2 [Member]
Cash equivalents		1,050
Commercial Paper [Member] \| Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 3 [Member]
Cash equivalents

Note 4 - Balance Sheet Detail (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Capital Leased Assets, Gross	$ 1,600,000	$ 1,400,000
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation	725,000	492,000
Amortization of Intangible Assets	$ 2,000	$ 141,000	$ 452,000

Note 4 - Balance Sheet Detail - Inventories (Details) - USD ($)
$ in Thousands

Dec. 31, 2017

Dec. 31, 2016

^[1]

Raw materials

$ 19,160

$ 9,072

Work in process

2,744

1,894

Finished goods

6,878

4,011

Total

$ 28,782

$ 14,977

[1]	The Raw materials balance in prior year was reclassified for consistency with current year.

Note 4 - Balance Sheet Detail - Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Property, plant and equipment, gross	$ 9,287	$ 9,060
Less: Accumulated depreciation	(7,191)	(7,153)
Total Property and equipment, net	2,096	1,907
Leasehold Improvements [Member]
Property, plant and equipment, gross	640	652
Equipment and Furniture [Member]
Property, plant and equipment, gross	2,370	2,973
Machinery and Equipment [Member]
Property, plant and equipment, gross	$ 6,277	$ 5,435

Note 4 - Balance Sheet Detail - Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Accumulated amortization and impairment amount	$ 4,663	$ 4,661
Goodwill	1,339	1,339
Goodwill	1,339	1,339
Total	6,002	6,002
Total	1,339	1,341
Patents [Member]
Gross carrying amount	1,218	1,218
Accumulated amortization and impairment amount	1,218	1,218
Net amount
Customer Relationships [Member]
Gross carrying amount	2,510	2,510
Accumulated amortization and impairment amount	2,510	2,508
Net amount		2
Other Intangible Assets [Member]
Gross carrying amount	780	780
Accumulated amortization and impairment amount	780	780
Net amount
Other Intangible [Member]
Gross carrying amount	155	155
Accumulated amortization and impairment amount	155	155
Net amount

Note 4 - Balance Sheet Detail - Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Accrued payroll and related expenses	$ 12,567	$ 9,036
Sales and marketing accruals	3,710	706
Accrued sales tax	2,920	2,373
Warranty liability	3,508	2,461
Other accrued liabilities	4,143	2,821
Total	$ 26,848	$ 17,397

Note 5 - Warranty and Service Contracts - Summary of Warranties (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Balance at beginning of year	$ 2,461	$ 1,819
Add: Accruals for warranties issued during the year	7,583	5,375
Less: Settlements and expirations during the year	(6,536)	(4,733)
Balance at end of year	$ 3,508	$ 2,461

Note 5 - Warranty and Service Contracts - Summary of Deferred Service Contract Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Balance at beginning of year	$ 9,431	$ 10,469
Add: Payments received	14,369	12,344
Less: Revenue recognized	(13,081)	(13,382)
Balance at end of year	$ 10,719	$ 9,431

Note 6 - Stockholders' Equity, Stock Plans and Stock-based Compensation Expense (Details Textual) - USD ($)		3 Months Ended	12 Months Ended
	Dec. 15, 2017	Dec. 31, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Jul. 28, 2017	Feb. 13, 2017	Feb. 08, 2016	Feb. 18, 2015	Feb. 17, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value			$ 8,000,000	$ 3,600,000	$ 5,100,000
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options, Net			$ 4,000,000	$ 9,500,000	$ 10,100,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			278,250	162,000	129,000
Shares Paid for Tax Withholding for Share Based Compensation			64,490	56,157	68,101
Adjustments Related to Tax Withholding for Share-based Compensation			$ 1,469,000	$ 619,000	$ 1,000,000
Minimum [Member]
Share Based Compensation, Forfeiture Rate		0.00%	0.00%
Maximum [Member]
Share Based Compensation, Forfeiture Rate		13.00%	13.00%
Non-employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			7,745	0
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period							3 years
Option Granted Contractual Term							7 years	7 years
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized		$ 11,500,000	$ 11,500,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition			2 years 281 days
Employee Stock Option [Member] \| Non-employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			4 years
Employee Stock Option [Member] \| Non-employees [Member] \| Vesting on First Anniversary of Grant Date [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage			25.00%
Employee Stock Option [Member] \| Non-employees [Member] \| Vesting Each Month After First Anniversary of Grant Date [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage			0.02083%
Restricted Stock Units (RSUs) [Member]
Share Price		$ 45.35	$ 45.35	$ 17.35	$ 12.79	$ 10.68
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value			$ 2,500,000	$ 2,200,000	$ 2,600,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period			412,208	480,191	203,104
Restricted Stock Units (RSUs) [Member] \| Non-employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			4 years
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period			2,478	0
Restricted Stock Units (RSUs) [Member] \| Non-employees [Member] \| Vesting Each Anniversary of Grant Date [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage			25.00%
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period					255 days
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted			117,418	204,976	74,667
Performance Shares [Member] \| Share-based Compensation Award, Tranche One [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			1 year
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted			104,500
Performance Shares [Member] \| Share-based Compensation Award, Tranche Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted		12,918
Stock Purchase Plan [Member]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized		$ 252,000	$ 252,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition			120 days
1998 Stock Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized		4,650,000	4,650,000
Two Thousand Four Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized		1,750,000	1,750,000
Number of Stock Awards Counted for Every Share Granted or Canceled			2.12
Share Based Compensation by Share Based Payment Fully Vested Stock Awards Grant Date Fair Value							$ 60,000
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures			21,605	45,350	21,020
Two Thousand Four Equity Incentive Plan [Member] \| Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			4 years
Option Exercisable in Hundredths			25.00%
Share Price		$ 45.35	$ 45.35	$ 17.35	$ 12.79	$ 10.68
Two Thousand Four Equity Incentive Plan [Member] \| Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period				4 years
Share Based Compensation by Share Based Payment Fully Vested Stock Awards Grant Date Fair Value				$ 6,500			$ 60,000
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period			270,707	229,865	107,417
Two Thousand Four Equity Incentive Plan [Member] \| Restricted Stock Units (RSUs) [Member] \| President and Chief Executive Officer [Member] \| Share-based Compensation Award, Tranche One [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	15.00%
Two Thousand Four Equity Incentive Plan [Member] \| Restricted Stock Units (RSUs) [Member] \| President and Chief Executive Officer [Member] \| Share-based Compensation Award, Tranche Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	15.00%
Two Thousand Four Equity Incentive Plan [Member] \| Restricted Stock Units (RSUs) [Member] \| President and Chief Executive Officer [Member] \| Share-based Compensation Award, Tranche Three [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	25.00%
Two Thousand Four Equity Incentive Plan [Member] \| Restricted Stock Units (RSUs) [Member] \| President and Chief Executive Officer [Member] \| Share-based Compensation Award, Tranche Four [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	45.00%
2004 Employee Stock Purchase Plan [Member]
ESPP Offering and Purchase Period			180 days
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized			600,000
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent			85.00%
Stock Issued During Period, Shares, Employee Stock Ownership Plan			78,479	79,922	55,872
Common Stock, Capital Shares Reserved for Future Issuance		691,584	691,584
Modified Stock Buyback Program [Member]
Increase in Authorized Amount Under Stock Repurchase Plan						$ 10,000,000
Stock Repurchase Program, Remaining Authorized Repurchase Amount									$ 25,000,000	$ 5,000,000	$ 10,000,000	$ 40,000,000	$ 10,000,000
Stock Repurchased During Period, Shares			1,022,602	455,311	2,818,038
Treasury Stock, Value, Acquired, Cost Method			$ 35,200,000	$ 4,900,000	$ 40,000,000

Note 6 - Stockholders' Equity, Stock Plans and Stock-based Compensation Expense - Activity Under the 2004 Equity Incentive Plan (Details) - USD ($)
$ / shares in Units, $ in Millions

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Balances, shares available for grant (in shares)

721,657

1,263,425

129,760

Balances, stock options outstanding (in shares)

1,116,472

2,148,797

3,462,567

Balances, weighted-average exercise price (in dollars per share)

$ 9.56

$ 9.31

$ 9.39

Balances, options outstanding weighted-average remaining contractual life (Year)

3 years 361 days

3 years 255 days

3 years 146 days

Balances, aggregate intrinsic value

^[1]

$ 24.4

$ 8.7

$ 7.9

$ 5.7

Additional shares reserved, shares available for grant (in shares)

1,600,000

^[2]

1,300,000

^[3]

Options granted, shares available for grant (in shares)

(278,250)

(162,000)

(129,000)

Options granted, stock options outstanding (in shares)

278,250

162,000

129,000

Options granted, weighted-average exercise price (in dollars per share)

$ 31

$ 11.55

$ 13.26

Options exercised, stock options outstanding (in shares)

(488,398)

(1,051,138)

(1,141,904)

Options exercised, weighted-average exercise price (in dollars per share)

$ 8.96

$ 8.89

$ 9.20

Options cancelled (expired or forfeited), shares available for grant (in shares)

66,405

143,187

300,866

Options cancelled (expired or forfeited), stock options outstanding (in shares)

(66,405)

(143,187)

(300,866)

Options cancelled (expired or forfeited), weighted-average exercise price (in dollars per share)

$ 16.54

$ 12.93

$ 12.37

Stock awards granted, shares available for grant (in shares)

(873,881)

(1,018,005)

(430,580)

Stock awards cancelled (expired or forfeited), shares available for grant (in shares)

258,935

495,050

92,379

Balances, shares available for grant (in shares)

1,494,866

721,657

1,263,425

129,760

Balances, stock options outstanding (in shares)

839,919

1,116,472

2,148,797

3,462,567

Balances, weighted-average exercise price (in dollars per share)

$ 16.46

$ 9.56

$ 9.31

$ 9.39

Exercisable, stock options outstanding (in shares)

467,794

Exercisable, weighted-average exercise price (in dollars per share)

$ 9.53

Exercisable, options outstanding weighted-average remaining contractual life (Year)

2 years 270 days

Exercisable, aggregate intrinsic value

^[1]

$ 16.8

Vested and expected to vest, net of estimated forfeitures, as of December 31, 2017 (in shares)

789,779

Vested and expected to vest, net of estimated forfeitures, as of December 31, 2017 (in dollars per share)

$ 15.61

Vested and expected to vest, net of estimated forfeitures, as of December 31, 2017 (Year)

3 years 313 days

Vested and expected to vest, net of estimated forfeitures, as of December 31, 2017

^[1]

$ 23.6

[1]	Based on the closing stock price of the Company's stock of $45.35 on December 31, 2017, $17.35 on December 30, 2016, $12.79 on December 31 2015 and $10.68 on December 31, 2014.
[2]	Approved by the board of directors and stockholders in 2017.
[3]	Approved by stockholders in 2015.

Note 6 - Stockholders' Equity, Stock Plans and Stock-based Compensation Expense - Options Outstanding and Exercisable Price Ranges (Details)	12 Months Ended
	Dec. 31, 2017 $ / shares shares
Range of exercise prices, lower limit (in dollars per share)	$ 6.88
Range of exercise prices, upper limit (in dollars per share)	$ 47.40
Options outstanding, number outstanding (in shares) \| shares	839,919
Options outstanding, weighted-average remaining contractual life (Year)	4 years 40 days
Options exercisable, number outstanding (in shares) \| shares	467,794
Options exercisable, weighted-average exercise price (in dollars per share)	$ 9.53
Exercise Price Range 1 [Member]
Range of exercise prices, lower limit (in dollars per share)	6.88
Range of exercise prices, upper limit (in dollars per share)	$ 7.15
Options outstanding, number outstanding (in shares) \| shares	84,739
Options outstanding, weighted-average remaining contractual life (Year)	1 year 156 days
Options exercisable, number outstanding (in shares) \| shares	84,739
Options exercisable, weighted-average exercise price (in dollars per share)	$ 6.92
Exercise Price Range 2 [Member]
Range of exercise prices, lower limit (in dollars per share)	7.44
Range of exercise prices, upper limit (in dollars per share)	$ 8.72
Options outstanding, number outstanding (in shares) \| shares	15,978
Options outstanding, weighted-average remaining contractual life (Year)	317 days
Options exercisable, number outstanding (in shares) \| shares	15,978
Options exercisable, weighted-average exercise price (in dollars per share)	$ 8.30
Exercise Price Range 3 [Member]
Range of exercise prices, lower limit (in dollars per share)	8.80
Range of exercise prices, upper limit (in dollars per share)	$ 8.80
Options outstanding, number outstanding (in shares) \| shares	141,956
Options outstanding, weighted-average remaining contractual life (Year)	2 years 164 days
Options exercisable, number outstanding (in shares) \| shares	141,956
Options exercisable, weighted-average exercise price (in dollars per share)	$ 8.80
Exercise Price Range 4 [Member]
Range of exercise prices, lower limit (in dollars per share)	9.28
Range of exercise prices, upper limit (in dollars per share)	$ 9.97
Options outstanding, number outstanding (in shares) \| shares	95,535
Options outstanding, weighted-average remaining contractual life (Year)	3 years 87 days
Options exercisable, number outstanding (in shares) \| shares	73,402
Options exercisable, weighted-average exercise price (in dollars per share)	$ 9.69
Exercise Price Range 5 [Member]
Range of exercise prices, lower limit (in dollars per share)	10.03
Range of exercise prices, upper limit (in dollars per share)	$ 10.86
Options outstanding, number outstanding (in shares) \| shares	88,044
Options outstanding, weighted-average remaining contractual life (Year)	4 years 167 days
Options exercisable, number outstanding (in shares) \| shares	51,517
Options exercisable, weighted-average exercise price (in dollars per share)	$ 10.38
Exercise Price Range 6 [Member]
Range of exercise prices, lower limit (in dollars per share)	10.90
Range of exercise prices, upper limit (in dollars per share)	$ 11.67
Options outstanding, number outstanding (in shares) \| shares	91,021
Options outstanding, weighted-average remaining contractual life (Year)	4 years 80 days
Options exercisable, number outstanding (in shares) \| shares	50,356
Options exercisable, weighted-average exercise price (in dollars per share)	$ 11.36
Exercise Price Range 7 [Member]
Range of exercise prices, lower limit (in dollars per share)	11.98
Range of exercise prices, upper limit (in dollars per share)	$ 17.90
Options outstanding, number outstanding (in shares) \| shares	109,896
Options outstanding, weighted-average remaining contractual life (Year)	4 years 240 days
Options exercisable, number outstanding (in shares) \| shares	49,033
Options exercisable, weighted-average exercise price (in dollars per share)	$ 13.36
Exercise Price Range 8 [Member]
Range of exercise prices, lower limit (in dollars per share)	18.55
Range of exercise prices, upper limit (in dollars per share)	$ 25.70
Options outstanding, number outstanding (in shares) \| shares	88,500
Options outstanding, weighted-average remaining contractual life (Year)	5 years 317 days
Options exercisable, number outstanding (in shares) \| shares	813
Options exercisable, weighted-average exercise price (in dollars per share)	$ 18.55
Exercise Price Range 9 [Member]
Range of exercise prices, lower limit (in dollars per share)	39.30
Range of exercise prices, upper limit (in dollars per share)	$ 39.30
Options outstanding, number outstanding (in shares) \| shares	77,000
Options outstanding, weighted-average remaining contractual life (Year)	6 years 302 days
Options exercisable, number outstanding (in shares) \| shares
Options exercisable, weighted-average exercise price (in dollars per share)
Exercise Price Range 10 [Member]
Range of exercise prices, lower limit (in dollars per share)	47.40
Range of exercise prices, upper limit (in dollars per share)	$ 47.40
Options outstanding, number outstanding (in shares) \| shares	47,250
Options outstanding, weighted-average remaining contractual life (Year)	6 years 350 days
Options exercisable, number outstanding (in shares) \| shares
Options exercisable, weighted-average exercise price (in dollars per share)

Note 6 - Stockholders' Equity, Stock Plans and Stock-based Compensation Expense - Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs) [Member] - USD ($)
$ / shares in Units, $ in Thousands

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Outstanding, number of shares (in shares)

445,317

371,630

434,321

Outstanding, weighted-average grant date fair value (in dollars per share)

$ 11.15

$ 12.39

$ 9.31

Outstanding, aggregate intrinsic value

^[1]

$ 23,155

$ 7,726

$ 4,753

$ 4,639

Granted, number of shares (in shares)

412,208

480,191

203,104

Granted, weighted-average grant date fair value (in dollars per share)

$ 28.74

$ 10.80

$ 14.81

Vested, number of shares (in shares)

^[2]

(224,799)

(172,990)

(222,220)

Vested, weighted-average grant date fair value (in dollars per share)

^[2]

$ 10.91

$ 12.56

$ 11.79

Vested, aggregate fair value

^[2],[4]

$ 5,168

^[3]

$ 1,906

^[5]

$ 3,285

^[6]

Forfeited, number of shares (in shares)

(122,139)

(233,514)

(43,575)

Forfeited, weighted-average grant date fair value (in dollars per share)

$ 13.56

$ 11.36

$ 9.09

Outstanding, number of shares (in shares)

510,587

445,317

371,630

Outstanding, weighted-average grant date fair value (in dollars per share)

$ 24.88

$ 11.15

$ 12.39

[1]	Based on the closing stock price of the Company's stock of $45.35 on December 31, 2017, $17.35 on December 31, 2016, $12.79 on December 31, 2015 and $10.68 on December 30, 2014.
[2]	The number of restricted stock units vested includes shares that the Company withheld on behalf of the employees to satisfy the statutory tax withholding requirements.
[3]	On the grant date, the fair value for these vested awards was $2.5 million.
[4]	Represents the value of the Company's stock on the date that the restricted stock units and performance stock units vest.
[5]	On the grant date, the fair value for these vested awards was $2.2 million.
[6]	On the grant date, the fair value for these vested awards was $2.6 million.

Note 6 - Stockholders' Equity, Stock Plans and Stock-based Compensation Expense - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Allocated share-based compensation expense	$ 5,110	$ 3,713	$ 4,084
Employee Stock Option [Member]
Allocated share-based compensation expense	815	989	1,438
Restricted Stock Units (RSUs) [Member]
Allocated share-based compensation expense	1,813	1,508	1,297
Performance Shares [Member]
Allocated share-based compensation expense	2,093	967	1,167
ESPP [Member]
Allocated share-based compensation expense	$ 389	$ 249	$ 182

Note 6 - Stockholders' Equity, Stock Plans and Stock-based Compensation Expense - Stock-based Compensation Expense by Department (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Allocated share-based compensation expense	$ 5,110	$ 3,713	$ 4,084
Cost of Sales [Member]
Allocated share-based compensation expense	660	341	447
Selling and Marketing Expense [Member] \| Employee [Member]
Allocated share-based compensation expense	1,629	1,179	1,054
Selling and Marketing Expense [Member] \| Non-employees [Member]
Allocated share-based compensation expense	13
Research and Development Expense [Member]
Allocated share-based compensation expense	936	596	662
General and Administrative Expense [Member]
Allocated share-based compensation expense	$ 1,872	$ 1,597	$ 1,921

Note 6 - Stockholders' Equity, Stock Plans and Stock-based Compensation Expense - Valuation Assumptions and Fair Value of Stock Option and ESPP Grants (Details) - $ / shares

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Employee Stock Option [Member]

Expected term (in years) (Year)

^[1]

3 years 255 days

3 years 302 days

3 years 87 days

Risk-free interest rate

^[2]

1.73%

1.09%

0.90%

Volatility

^[3]

40.00%

30.00%

Dividend yield

^[4]

Weighted average estimated fair value at grant date (in dollars per share)

$ 9.98

$ 3.72

$ 4.78

Stock Purchase Plan [Member]

Expected term (in years) (Year)

^[1]

182 days

Risk-free interest rate

^[2]

1.14%

0.46%

0.17%

Volatility

^[3]

42.00%

39.00%

36.00%

Dividend yield

^[4]

Weighted average estimated fair value at grant date (in dollars per share)

$ 8.21

$ 3.22

$ 3.51

[1]	The expected term represents the period during which the Company's stock-based awards are expected to be outstanding. The estimated term is based on historical experience of similar awards, giving consideration to the contractual terms of the awards, vesting requirements, and expectation of future employee behavior, including post-vesting terminations. The expected term of groups of employees that have similar historical exercise patterns has been considered separately for valuation purposes.
[2]	The risk-free interest rate is based on U.S. Treasury debt securities with maturities close to the expected term of the option as of the date of grant.
[3]	Estimated volatility is based on historical volatility. The Company also considers implied volatility when there is sufficient volume of freely traded options with comparable terms and exercise prices in the open market.
[4]	The Company has not historically issued any dividends and does not expect to do so in the foreseeable future.

Note 8 - Income Taxes (Details Textual) - USD ($)	12 Months Ended
Note 8 - Income Taxes (Details Textual) - USD ($)	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued		$ 97,298
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent		34.00%	34.00%	34.00%
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability		$ 7,300,000
Undistributed Earnings of Foreign Subsidiaries		0
Scenario, Forecast [Member]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%
Federal and US State Except California [Member]
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount		(26,300,000)
Domestic Tax Authority [Member]
Operating Loss Carryforwards		34,700,000
Tax Credit Carryforward, Amount		6,109,000
Domestic Tax Authority [Member] \| Research Tax Credit Carryforward [Member]
Tax Credit Carryforward, Amount		$ 6,100,000
Domestic Tax Authority [Member] \| Earliest Tax Year [Member]
Operating Loss Carryforwards Expiration Year 1		2029
Tax Credit Carryforward Expiration Year		2024
Domestic Tax Authority [Member] \| Earliest Tax Year [Member] \| Research Tax Credit Carryforward [Member]
Tax Credit Carryforward Expiration Year		2024
Domestic Tax Authority [Member] \| Latest Tax Year [Member]
Operating Loss Carryforwards Expiration Year 1		2035
Tax Credit Carryforward Expiration Year		2036
Domestic Tax Authority [Member] \| Realizable Deferred Tax Assets due to Achievement of Three Years Cumulative Income [Member]
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount		$ (26,300,000)
State and Local Jurisdiction [Member]
Operating Loss Carryforwards		20,773,000
Tax Credit Carryforward, Amount		6,872,000
State and Local Jurisdiction [Member] \| Research Tax Credit Carryforward [Member] \| California Franchise Tax Board [Member]
Tax Credit Carryforward, Amount		6,600,000
State and Local Jurisdiction [Member] \| Research Tax Credit Carryforward [Member] \| Massachusetts Department of Revenue [Member]
Tax Credit Carryforward, Amount		$ 300,000
State and Local Jurisdiction [Member] \| Earliest Tax Year [Member]
Operating Loss Carryforwards Expiration Year 1		2029
State and Local Jurisdiction [Member] \| Earliest Tax Year [Member] \| Research Tax Credit Carryforward [Member] \| Massachusetts Department of Revenue [Member]
Tax Credit Carryforward Expiration Year		2021
State and Local Jurisdiction [Member] \| Latest Tax Year [Member]
Operating Loss Carryforwards Expiration Year 1		2035

Note 8 - Income Taxes - Income (Loss) Before Provision for Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
U.S.									$ 11,203	$ 2,207	$ (4,588)
International									757	513	360
Income (loss) before income taxes	$ 4,681	$ 6,413	$ 2,006	$ (1,140)	$ 4,241	$ 1,705	$ (1,199)	$ (2,027)	$ 11,960	$ 2,720	$ (4,228)

Note 8 - Income Taxes - Income Tax Provision (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Current:
Federal									$ 148		$ (7)
State									71	16	23
International									511	131	218
Total Current									730	147	234
Deferred:
Federal									(17,393)	(24)	33
State									(1,348)	(2)
International									(22)	22	(55)
Total deferred tax benefit									(18,763)	(4)	(22)
Total tax expense (benefit)	$ (18,199)	$ 225	$ 59	$ (118)	$ 28	$ 61	$ 30	$ 24	$ (18,033)	$ 143	$ 212

Note 8 - Income Taxes - Deferred Tax Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Net operating loss carryforwards	$ 8,604	$ 15,487
Stock-based compensation	1,179	1,486
Other accruals and reserves	1,663	2,160
Credits	11,781	9,006
Foreign	399	377
Accrued warranty	847	890
Depreciation and amortization	1,592	2,627
Other	303	95
Deferred tax asset before valuation allowance	26,368	32,128
Valuation allowance	(7,242)	(31,751)
Deferred tax asset after valuation allowance	19,126	377
Deferred tax liability on goodwill	(71)	(85)
Net deferred tax asset	$ 19,055	$ 292

Note 8 - Income Taxes - Summary of Net Operating Losses and Tax Credit Carryforwards (Details)	12 Months Ended
	Dec. 31, 2017 USD ($)
Domestic Tax Authority [Member]
Net operating losses, federal	$ 34,700,000
Tax credits, federal	$ 6,109,000
Domestic Tax Authority [Member] \| Earliest Tax Year [Member]
Net operating losses, federal, expiration years	2029
Tax credits, federal, expiration years	2024
Domestic Tax Authority [Member] \| Latest Tax Year [Member]
Net operating losses, federal, expiration years	2035
Tax credits, federal, expiration years	2036
State and Local Jurisdiction [Member]
Net operating losses, federal	$ 20,773,000
Tax credits, federal	$ 6,872,000
State and Local Jurisdiction [Member] \| Earliest Tax Year [Member]
Net operating losses, federal, expiration years	2029
State and Local Jurisdiction [Member] \| Latest Tax Year [Member]
Net operating losses, federal, expiration years	2035

Note 8 - Income Taxes - Reconciliation of Effective Tax Rate (Details)

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Statutory rate

34.00%

State tax

(5.59%)

(14.56%)

1.94%

General Business Credits

(2.72%)

(9.25%)

General Business Credits

(15.92%)

Stock-based compensation

(21.55%)

14.36%

(19.19%)

Foreign Rate Differential

(0.50%)

(0.16%)

(1.47%)

Change in Federal Tax Rate

60.98%

Other*

^[1]

0.65%

(2.15%)

(1.35%)

Meals and Entertainment*

^[1]

2.15%

7.56%

(3.23%)

Valuation allowance

(218.17%)

(24.57%)

(31.63%)

Effective tax rate

(150.75%)

5.23%

(5.01%)

[1]	Other balance in 2016 and 2015 was reclassified for consistency with current year.

Note 8 - Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Beginning of the year unrecognized tax benefits	$ 707	$ 651
Increases related to prior year tax positions	643
Increases related to current year tax positions	169	56
End of the year unrecognized tax benefits	$ 1,519	$ 707

Note 9 - Net Income (Loss) Per Share - Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Net income (loss)	$ 22,880	$ 6,188	$ 1,947	$ (1,022)	$ 4,213	$ 1,644	$ (1,229)	$ (2,051)	$ 29,993	$ 2,577	$ (4,440)
Basic (in shares)	13,744	13,973	13,935	13,840	13,591	13,163	13,131	13,010	13,873	13,225	13,960
Add: dilutive effect of potential common shares (in shares)									855	528
Weighted-average shares used in computing diluted net income per share (in shares)	14,569	14,767	14,629	13,840	14,201	13,544	13,131	13,010	14,728	13,753	13,960
Net income (loss) per share—basic (in dollars per share)	$ 1.66	$ 0.44	$ 0.14	$ (0.07)	$ 0.31	$ 0.12	$ (0.09)	$ (0.16)	$ 2.16	$ 0.19	$ (0.32)
Net income (loss) per share—diluted (in dollars per share)	$ 1.57	$ 0.42	$ 0.13	$ (0.07)	$ 0.30	$ 0.12	$ (0.09)	$ (0.16)	$ 2.04	$ 0.19	$ (0.32)

Note 9 - Net Income (Loss) Per Share - Antidilutive Securities Excluded From Computation of Earnings Per Share (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Antidilutive Securities (in shares)	51	244	2,988
Employee Stock Option [Member]
Antidilutive Securities (in shares)	42	220	2,575
Restricted Stock Units (RSUs) [Member]
Antidilutive Securities (in shares)	9	24	296
ESPP [Member]
Antidilutive Securities (in shares)			93
Performance Shares [Member]
Antidilutive Securities (in shares)			24

Note 11 - Segment Information and Revenue by Geograpy and Products - Revenue by Geographic Region (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Net revenue	$ 47,632	$ 38,173	$ 36,389	$ 29,299	$ 37,875	$ 30,281	$ 27,477	$ 22,423	$ 151,493	$ 118,056	$ 94,761
Revenue mix	$ 47,632	$ 38,173	$ 36,389	$ 29,299	$ 37,875	$ 30,281	$ 27,477	$ 22,423	151,493	118,056	94,761
Product [Member]
Net revenue									125,883	92,721	71,223
Revenue mix									125,883	92,721	71,223
Hand Piece Refills [Member]
Net revenue									2,435	2,498	2,910
Revenue mix									2,435	2,498	2,910
Skincare [Member]
Net revenue									4,342	3,809	2,889
Revenue mix									4,342	3,809	2,889
Total Product Revenue [Member]
Net revenue									132,660	99,028	77,022
Revenue mix									132,660	99,028	77,022
Service [Member]
Net revenue									18,833	19,028	17,739
Revenue mix									18,833	19,028	17,739
UNITED STATES
Net revenue									94,581	65,513	48,916
Revenue mix									94,581	65,513	48,916
JAPAN
Net revenue									17,264	14,727	11,504
Revenue mix									17,264	14,727	11,504
Asia, Excluding Japan [Member]
Net revenue									13,719	13,445	15,596
Revenue mix									13,719	13,445	15,596
Europe [Member]
Net revenue									8,317	7,539	7,728
Revenue mix									8,317	7,539	7,728
Rest of World [Member]
Net revenue									17,612	16,832	11,017
Revenue mix									$ 17,612	$ 16,832	$ 11,017

Note 12 - Commitments and Contingencies - Minimum Lease and Other Leased Assets Under Long-term Non-cancellable Operating Leases (Details) $ in Thousands	Dec. 31, 2017 USD ($)
2018	$ 2,891
2019	2,871
2020	2,815
2021	2,515
2022	2,495
2023 and thereafter	214
Future minimum lease payments	$ 13,801

Note 12 - Commitments and Contingencies - Minimum Lease Payments for Leased Vehicles Under Long-term Non-cancellable Capital Leases (Details) $ in Thousands	Dec. 31, 2017 USD ($)
2018	$ 472
2019	381
2020	104
Future minimum lease payments	$ 957

Note 13 - Related Parties (Details Textual) - USD ($)	12 Months Ended
Note 13 - Related Parties (Details Textual) - USD ($)	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	412,208	480,191	203,104
Director [Member] \| Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period		6,500
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Fair Value		$ 87,100
Director [Member] \| Restricted Stock Units (RSUs) [Member] \| Vesting Commencing on August 15, 2016 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		3 years
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage		33.33%
Director [Member] \| Product Development, Clinical Sales and Marketing Support Services [Member]
Related Party Transaction, Amounts of Transaction	$ 196,000	$ 182,100
T3 Advisors [Member] \| Real Estate Brokerage Services [Member]
Related Party Transaction, Amounts of Transaction	$ 38,000

Supplementary Financial Data (Unaudited) - Supplementary Financial Data (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Net revenue	$ 47,632	$ 38,173	$ 36,389	$ 29,299	$ 37,875	$ 30,281	$ 27,477	$ 22,423	$ 151,493	$ 118,056	$ 94,761
Cost of revenue	20,299	15,963	15,343	13,778	15,962	12,538	11,472	9,949	65,383	49,921	40,478
Gross profit	27,333	22,210	21,046	15,521	21,913	17,743	16,005	12,474	86,110	68,135	54,283
Sales and marketing	15,362	13,148	12,787	10,773	11,561	10,574	10,712	8,716	52,070	41,563	35,942
Research and development	3,481	3,467	2,981	2,945	2,897	2,914	2,712	2,709	12,874	11,232	10,733
General and administrative	3,947	3,379	3,548	3,216	3,010	2,716	3,997	3,220	14,090	12,943	12,129
Lease termination income		(4,000)							(4,000)
Total operating expenses	22,790	15,994	19,316	16,934	17,468	16,204	17,421	14,645	75,034	65,738	58,804
Income (loss) from operations	4,543	6,216	1,730	(1,413)	4,445	1,539	(1,416)	(2,171)	11,076	2,397	(4,521)
Interest and other income, net	138	197	276	273	(204)	166	217	144	884	323	293
Income (loss) before income taxes	4,681	6,413	2,006	(1,140)	4,241	1,705	(1,199)	(2,027)	11,960	2,720	(4,228)
Income tax provision (benefit)	(18,199)	225	59	(118)	28	61	30	24	(18,033)	143	212
Net income (loss)	$ 22,880	$ 6,188	$ 1,947	$ (1,022)	$ 4,213	$ 1,644	$ (1,229)	$ (2,051)	$ 29,993	$ 2,577	$ (4,440)
Net income (loss) per share—basic (in dollars per share)	$ 1.66	$ 0.44	$ 0.14	$ (0.07)	$ 0.31	$ 0.12	$ (0.09)	$ (0.16)	$ 2.16	$ 0.19	$ (0.32)
Net income (loss) per share—diluted (in dollars per share)	$ 1.57	$ 0.42	$ 0.13	$ (0.07)	$ 0.30	$ 0.12	$ (0.09)	$ (0.16)	$ 2.04	$ 0.19	$ (0.32)
Basic (in shares)	13,744	13,973	13,935	13,840	13,591	13,163	13,131	13,010	13,873	13,225	13,960
Diluted (in shares)	14,569	14,767	14,629	13,840	14,201	13,544	13,131	13,010	14,728	13,753	13,960

Schedule II - Valuation and Qualifying Accounts - Summary of the Deferred Tax Assets Valuation Allowance and Allowance for Doubtful Accounts Receivable (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Valuation Allowance of Deferred Tax Assets [Member]
Balance at beginning of year	$ 31,751	$ 27,616	$ 26,046
Additions	617	6,755	3,327
Deductions	25,126	2,620	1,757
Balance at end of year	7,242	31,751	27,616
Allowance for Doubtful Accounts, Current [Member]
Balance at beginning of year	21	4
Additions	14	21	4
Deductions	26	4
Balance at end of year	$ 9	$ 21	$ 4

Note 7 - Lease Termination Income	12 Months Ended
Note 7 - Lease Termination Income	Dec. 31, 2017
Notes to Financial Statements
Lease Termination Income [Text Block]	NOTE 7 — LEASE TERMINATION INCOME On May 2, 2017, the Company entered into a building lease with the intent to relocate its corporate headquarters to a new facility in Fremont, California. On July 6, 2017, the Company agreed to terminate this lease in return for a lump sum receipt from the subsequent lessor of $4.0 million. Simultaneously with the execution of the lease termination, the Company entered into an amendment to its existing lease agreement for the Company to maintain its corporate headquarters in its current facility in Brisbane, California. This amendment extends the term of the lease from December 31, 2017 to January 31, 2023. The $4.0 million is reported as “Lease termination income,” as a component of operating expenses, in the Company’s Consolidated Statements of Operations as of December 31, 2017.

Note 5 - Warranty and Service Contracts (Details Textual) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Deferred Revenue Costs Incurred	$ 6.0	$ 6.7	$ 6.2

Note 10 - Defined Contribution Plan (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Defined Contribution Plan, Employer Discretionary Contribution Amount	$ 288,000	$ 262,000	$ 244,000
Maximum [Member]
Defined Contribution Plan Maximum Percentage of Employee Voluntary Contribution	100.00%

Note 12 - Commitments and Contingencies (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Estimated Litigation Liability	$ 91,000	$ 138,000
Operating Leases, Rent Expense	$ 1,500,000	$ 1,600,000	$ 1,500,000

Note 2 - Summary of Significant Accounting Policies - Useful Lives of Property, Plant and Equipment (Details)	12 Months Ended
	Dec. 31, 2017
Equipment and Furniture [Member]
Property, plant, and equipment, useful lives (Year)	3 years
Machinery and Equipment [Member]
Property, plant, and equipment, useful lives (Year)	3 years

Note 3 - Investment Securities (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	$ 0	$ 0
Maturity of Money Market Fund	3 years