Document And Entity Information - USD ($) $ in Millions	12 Months Ended
Document And Entity Information - USD ($) $ in Millions	Dec. 31, 2016	Feb. 28, 2017	Jun. 30, 2016
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)		13,866,428
Entity Public Float			$ 98
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	FY
Amendment Flag	false

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 13,775	$ 10,868
Marketable investments	40,299	37,539
Accounts receivable, net of allowance for doubtful accounts of $21 and $4, respectively	16,547	11,669
Inventories	14,977	12,078
Other current assets and prepaid expenses	2,251	1,675
Total current assets	87,849	73,829
Property and equipment, net	1,907	1,473
Deferred tax assets	377	350
Intangibles, net	2	143
Goodwill	1,339	1,339
Other long-term assets	380	384
Total assets	91,854	77,518
Current liabilities:
Accounts payable	2,598	1,959
Accrued liabilities	17,397	13,834
Deferred revenue	8,394	8,638
Total current liabilities	28,389	24,431
Deferred revenue, net of current portion	1,705	2,287
Income tax liability	168	182
Other long-term liabilities	582	584
Total liabilities	30,844	27,484
Commitments and contingencies (Note 10)
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: 13,773,389 and 12,980,807 shares at December 31, 2016 and 2015, respectively	14	13
Additional paid-in capital	88,114	79,782
Accumulated deficit	(27,046)	(29,672)
Accumulated other comprehensive loss	(72)	(89)
Total stockholders’ equity	61,010	50,034
Total liabilities and stockholders’ equity	$ 91,854	$ 77,518

Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Accounts receivable, allowance for doubtful accounts	$ 21	$ 4
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)	13,773,389	12,980,807
Common stock, outstanding (in shares)	13,773,389	12,980,807

Consolidated Statements of Operations - USD ($) shares in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Net revenue:
Products	$ 99,028,000	$ 77,022,000	$ 60,299,000
Sales Revenue, Services, Net	19,028,000	17,739,000	17,839,000
Total net revenue	118,056,000	94,761,000	78,138,000
Cost of revenue:
Products	40,149,000	32,402,000	26,796,000
Service	9,772,000	8,076,000	7,969,000
Total cost of revenue	49,921,000	40,478,000	34,765,000
Gross profit	68,135,000	54,283,000	43,373,000
Operating expenses:
Sales and marketing	41,563,000	35,942,000	32,246,000
Research and development	11,232,000	10,733,000	10,543,000
General and administrative	12,943,000	12,129,000	11,203,000
Total operating expenses	65,738,000	58,804,000	53,992,000
Income (loss) from operations	2,397,000	(4,521,000)	(10,619,000)
Interest and other income, net	323,000	293,000	226,000
Income (loss) before income taxes	2,720,000	(4,228,000)	(10,393,000)
Income tax provision	143,000	212,000	219,000
Net income (loss)	$ 2,577,000	$ (4,440,000)	$ (10,612,000)
Net income (loss) per share:
Basic (in dollars per share)	$ 0.19	$ (0.32)	$ (0.74)
Diluted (in dollars per share)	$ 0.19	$ (0.32)	$ (0.74)
Weighted-average number of shares used in per share calculations:
Basic (in shares)	13,225	13,960	14,254
Diluted (in shares)	13,753	13,960	14,254

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Net income (loss)	$ 2,577	$ (4,440)	$ (10,612)
Available-for-sale investments
Net change in unrealized gain (loss) on available-for-sale investments	30	(87)	(42)
Less: Reclassification adjustment for net gains on investments recognized during the year	(3)	(7)	(4)
Net change in unrealized gain (loss) on available-for-sale investments	27	(94)	(46)
Tax provision	10
Other comprehensive income (loss), net of tax	17	(94)	(46)
Comprehensive income (loss)	$ 2,594	$ (4,534)	$ (10,658)

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, 2013	13,931,833
Balance at Dec. 31, 2013	$ 14	$ 98,820	$ (14,620)	$ 51	$ 84,265
Issuance of common stock for employee purchase plan (in shares)	52,759
Issuance of common stock for employee purchase plan		451			$ 451
Exercise of stock options (in shares)	396,970				396,970
Exercise of stock options		3,307			$ 3,307
Issuance of common stock in settlement of restricted and performance stock units, net of shares withheld for employee taxes, and stock awards (in shares)	65,388
Issuance of common stock in settlement of restricted and performance stock units, net of shares withheld for employee taxes, and stock awards		(156)			(156)
Stock-based compensation expense		3,299			3,299
Net income (loss)			(10,612)		(10,612)
Net change in unrealized loss on available-for-sale investments				(46)	(46)
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)
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				12,980,807
Balance at Dec. 31, 2015	$ 13	79,782	(29,672)	(89)	$ 50,034
Repurchase of common stock (in shares)	(2,818,038)
Repurchase of common stock	$ (3)	(40,082)			(40,085)
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)
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
Repurchase of common stock (in shares)	(455,311)
Repurchase of common stock		(4,873)			(4,873)
Deferred tax relating to adoption of ASU 2016-09			$ 49		$ 49

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities:
Net income (loss)	$ 2,577,000	$ (4,440,000)	$ (10,612,000)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Stock-based compensation	3,713,000	4,084,000	3,299,000
Depreciation and amortization	982,000	1,186,000	1,336,000
Impairment of intangible assets			650,000
Other	15,000	227,000	206,000
Changes in assets and liabilities:
Accounts receivable	(4,899,000)	(536,000)	(1,460,000)
Inventories	(2,899,000)	(1,090,000)	(1,982,000)
Other current assets and prepaid expenses	(432,000)	241,000	239,000
Other long-term assets	4,000	(23,000)	(37,000)
Accounts payable	639,000	(1,124,000)	1,263,000
Accrued liabilities	3,461,000	2,687,000	1,650,000
Other long-term liabilities	(329,000)	(289,000)	(285,000)
Deferred revenue	(826,000)	(2,319,000)	1,410,000
Income tax liability	(14,000)	37,000	37,000
Net cash provided by (used in) operating activities	1,992,000	(1,359,000)	(4,286,000)
Cash flows from investing activities:
Acquisition of property, equipment and software	(537,000)	(746,000)	(734,000)
Disposal of property and equipment	20,000
Proceeds from sales of marketable investments	9,008,000	21,171,000	12,354,000
Proceeds from maturities of marketable investments	25,810,000	35,918,000	26,915,000
Purchase of marketable investments	(37,693,000)	(23,697,000)	(44,146,000)
Net cash provided by (used in) investing activities	(3,392,000)	32,646,000	(5,611,000)
Cash flows from financing activities:
Repurchase of common stock	(4,873,000)	(40,085,000)
Proceeds from exercise of stock options and employee stock purchase plan	10,111,000	11,079,000	3,758,000
Taxes paid related to net share settlement of equity awards	(618,000)	(1,018,000)	(156,000)
Payments on capital lease obligation	(313,000)	(198,000)	(144,000)
Net cash provided by (used in) financing activities	4,307,000	(30,222,000)	3,458,000
Net increase (decrease) in cash and cash equivalents	2,907,000	1,065,000	(6,439,000)
Cash and cash equivalents at beginning of year	10,868,000	9,803,000	16,242,000
Cash and cash equivalents at end of year	13,775,000	10,868,000	9,803,000
Supplemental cash flow information:
Cash paid for interest	43,000	20,000	26,000
Cash paid for income taxes	222,000	160,000	225,000
Supplemental non-cash investing and financing activities:
Assets acquired under capital lease	$ 801,000	$ 285,000	$ 70,000

Note 1 - Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

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

NOTE

1—SUMMARY

OF SIGNIFICANT ACCOUNTING POLICIES

Description of Operations and Principles of Consolidation

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:

lighten

, excel HR

, truSculpt

, excel V

and

xeo

®.

The Company’s systems offer multiple hand pieces and applications, which allow customers to upgrade their systems. The sales of systems, system upgrades, hand pieces, hand piece refills (applicable to

Titan

and

truSculpt

) and the distribution of

third

party manufactured skincare products are 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

) 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, Hong Kong, Japan, Spain (until

January

2017),

Switzerland and the United Kingdom. These subsidiaries market, sell and service the Company’s products outside of the United States. The Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All inter-company transactions and balances have been eliminated.

Use of Estimates

The preparation of Consolidated Financial Statements in conformity with generally accepted accounting principles in the United States of America (“GAAP”) requires the Company’s management to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. 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, fair values of options to purchase the Company’s common stock and other share based awards, 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.

Cash, Cash Equivalents,

and

Marketable Investments

The Company invests its 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 purchase 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 distinguishes between

(1)

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

(2)

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

3).

The

three

levels of the fair value hierarchy are described below:

●

Level

Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities.

●

Level

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

also includes 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

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.

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 no other-than-temporary impairments in the years ended

December

31,

2016,

2015,

and

2014.

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 our products.

The allowance for doubtful accounts is based on the Company’s assessment of the collectability of customer accounts. 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 and Other Risks and Uncertainties

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. 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. 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 typically unsecured and are derived from revenue earned from worldwide customers. The Company performs credit evaluations of its customers and maintains reserves for potential credit losses. As of

December

31,

2016

and

2015,

there was

one

customer who represented

12%

and

10%,

respectively, of the Company’s net accounts receivable.

During the years ended

December

31,

2016,

2015,

and

2014,

domestic revenue accounted for

55%,

52%,

and

45%,

respectively, of total revenue, while international revenue accounted for

45%,

48%,

and

55%,

respectively, of total revenue. No single customer represented more than

10%

of total revenue for any of the years ended

December

31,

2016,

2015,

and

2014.

The Company is also subject to risks common to companies in the medical device industry, including, but not limited to, new technology innovations, dependence on key personnel, dependence on key suppliers, protection of proprietary technology, product liability, Food and Drug Administration and/or international regulatory approvals required for new products and compliance with government regulations.

Inventories

Inventories are stated at the lower of cost or market, cost being determined on a standard cost basis, which approximates actual cost on a

first

-in,

first

-out basis, and market being determined as the lower of replacement cost or net realizable value.

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,

2016

and

2015,

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

$2.4

and

$2.3

million, respectively.

Property and Equipment

Property and equipment are stated at cost, net of accumulated depreciation. Depreciation recognized is 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

2016,

2015

and

2014,

was

$841,000,

$734,000

and

$562,000

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

Goodwill and Intangible Assets

Goodwill, which represents the excess of the purchase price over the fair value of net tangible and identifiable intangible assets, is not subject to amortization, but is subject to at least an annual assessment for impairment, applying a fair-value based test.

The Company’s intangible assets are comprised of purchased technology sub-licenses, acquired customer relationships, and those assets acquired in conjunction with an asset acquisition in

February

2012

including existing customer relationships, product portfolio and a manufacturing process for the products acquired. All identifiable intangibles have finite lives and are carried at cost, net of accumulated amortization. Amortization was recorded using the straight-line method, except for a portion of the purchased intangibles which are

being amortized on a declining-balance basis, over their respective useful lives, which range from approximately

months to

years.

Impairment of Long-lived Assets

Goodwill is not amortized, but is tested for impairment at least annually or as circumstances indicate their value

may

no longer be recoverable. The goodwill impairment test is performed annually during the

fourth

fiscal quarter (or earlier if impairment indicators arise). 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,

2016,

there has been no impairment of goodwill.

The Company evaluates the recoverability of its long-lived assets, which include amortizable intangible and tangible assets. Acquired intangible assets with definite useful lives are amortized over their useful lives. The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of long-lived assets

may

not be recoverable. The Company recognizes such impairment in the event the net book value of such assets exceeds the future undiscounted cash flows attributable to such assets. In

2014,

the Company’s impairment review indicated that certain purchased long-lived assets associated with the Iridex acquisition were impaired and an impairment charge of

$650,000

was recognized. No other impairment losses were incurred in the periods presented.

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. The estimated warranty cost is based on historical product performance. 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 assured.

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 arrangements

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-element arrangements are generally comprised of the following elements that are recognized as separate units of accounting: Product and service contracts.

For multiple-element arrangements revenue is allocated to each element based on their relative selling prices. Relative selling prices are based on vendor specified objective evidence (“VSOE”), if available,

third

-party evidence of selling price (“TPE”) when VSOE does not exist, and on best estimate of selling price (“BESP”) if VSOE and TPE do not exist. Because the Company has neither VSOE nor TPE for its systems and service contracts, the allocation of revenue is based on the Company’s BESPs for each element. 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 its products or services by considering multiple factors including, prices charged for stand-alone sales, features and functionality of the products and services, geographies, type of customer, and market conditions. Revenue allocated to each element is then recognized when the other revenue recognition criteria are met for the element.

With respect to the sale of its

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.

The Company also offers customers extended service contracts. Revenue under service contracts is recognized on a straight-line basis over the period of the applicable service contract. 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,

2016,

2015,

and

2014

was

$19.0

million,

$17.7

million, and

$17.8

million, respectively.

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 involved in our 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 user 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

product and provides for refurbishment of other hand pieces under warranty or service contracts. 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

Costs related to research, design, development and testing of products are charged to research and development expense as incurred. Expenses incurred primarily relate to employees, facilities, material,

third

party contractors and clinical and regulatory fees.

Advertising Costs

Advertising costs are included as part of sales and marketing expense and are expensed as incurred. Advertising expenses for

2016,

2015

and

2014

were

$1.3

million,

$1.2

million and

$1.6

million, respectively.

Stock-based Compensation

The Company accounts for its employee stock options under the fair value method of accounting using a Black-Scholes valuation model to measure stock option expense at the date of grant. The fair value of Restricted Stock Units (“RSUs”) is measured at the market price of the Company’s stock on the date of grant. 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.

Stock-based compensation expense, net of estimated forfeitures, is recognized over the requisite service period.

For RSUs and PSUs, the Company issues shares on the vesting dates, net of the minimum tax withholding requirements to be paid by the Company on behalf of its 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 deductions 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 recognizes income taxes under the liability method. The Company recognizes deferred income taxes for differences between the financial reporting and tax bases of assets and liabilities at enacted statutory tax rates in effect for the years in which differences are expected to reverse. The Company recognizes the effect on deferred taxes of a change in tax rates 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 income 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 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 recent history of pre-tax earnings, 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 maintains a full valuation allowance against its U.S. federal and state deferred tax asset due to a history of operating losses.

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

740.

The subtopic prescribes the minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. Additionally, the subtopic provides guidance on de-recognition, measurement, classification, interest and penalties, and transition of uncertain tax positions. 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.

Comprehensive Loss

Comprehensive 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,

2016.

Segments

The Company operates in

one

segment. Management uses

one

measurement of profitability and does not segregate its business for internal reporting. As of

December

31,

2016

and

2015,

98%

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

for details relating to revenue by geography.

Recent Accounting Pronouncements

May

2014,

the Financial Accounting Standards Board ("FASB") issued Accounting Standards Updates (“ASU”) No.

2014

09,

Revenue from Contracts with Customers

, outlining a single comprehensive model for entities to utilize to recognize revenue when it transfers goods or services to customers in an amount that reflects the consideration that will be received in exchange for the goods and services. Additional disclosures will also be required to enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In

2016,

the FASB issued accounting standards updates to address implementation issues and to clarify the guidance for identifying performance obligations, licenses and determining if a company is the principal or agent in a revenue arrangement. In

August

2015,

the FASB deferred the effective date of this standards update to fiscal years beginning after

December

15,

2017,

with early adoption permitted on the original effective date of fiscal years beginning after

December

15,

2016.

The standard permits the use of either a retrospective or modified retrospective application. The Company is evaluating the effects of the new guidance and have not yet selected a transition method or determined the potential effects of adoption on the consolidated financial statements.

July

2015,

the FASB issued ASU No.

2015

11,

Simplifying the Measurement of Inventory

. Currently, an entity is required to measure its inventory at the lower of cost or market, whereby market can be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. The changes require that inventory be measured at the lower of cost and net realizable value, thereby eliminating the use of the other

two

market methodologies. Net realizable value is defined as the estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. These changes do not apply to inventories measured using LIFO (last-in,

first

-out) or the retail inventory method. These changes became effective on

January

2017

and management does not expect the updated standard to have a material impact on the reported inventory balances in the Consolidated Financial Statements and related disclosures.

February

2016,

the FASB issued ASU

2016

02,

Leases

. This guidance establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and lease liability on the balance sheet for all leases with terms longer than

months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the Consolidated Statement of Operations. The mandatory adoption date of this standard is for fiscal years beginning after

December

15,

2018.

A modified retrospective transition approach is required for leases existing at, or entered into, after the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company expects that upon adoption, ROU assets and lease liabilities will be recognized in the balance sheet in amounts that will be material.

Adopted Accounting Pronouncements

The Company early adopted ASU

2016

in the

fourth

quarter of

2016.

For a detailed discussion of the impact of the adoption, refer to “Note

6—Income

Taxes.”

Note 2 - Investment Securities

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

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

NOTE

2—INVESTMENT

SECURITIES

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

	December 31,
	2016		20 15
Cash and cash equivalents:
Cash	$	6,672	$	9,830
Cash equivalents:
Money market funds		6,053		1,000
Commercial paper		1,050		38
Total cash and cash equivalents		13,775		10,868

Marketable securities:
U.S. government notes		8,398		7,779
U.S. government agencies		3,916		12,608
Municipal securities		1,325		4,346
Commercial paper		12,299		4,040
Corporate debt securities		14,361		8,766
Total marketable securities		40,299		37,539

Total cash, cash equivalents and marketable securities	$	54,074	$	48,407

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

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

December 31, 201 5	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Market Value
Cash and cash equivalents	$	10,868	$	—	$	—		$	10,868

Marketable investments
U.S. government notes		7,780		1		(2	)		7,779
U.S. government agencies		12,630		3		(25	)		12,608
Municipal securities		4,344		2		—			4,346
Commercial paper		4,041		1		(2	)		4,040
Corporate debt securities		8,783		—		(17	)		8,766
Total marketable securities		37,578		7		(46	)		37,539

Total cash, cash equivalents and marketable securities	$	48,446	$	7	$	(46	)	$	48,407

No investments were in a continuous unrealized loss position for longer than

months as of

December

31,

2016

and

2015.

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,

2016

(in thousands):

	Amount
Due in less than one year (fiscal year 2017)	$	36,796
Due in 1 to 3 years (fiscal year 2018-2019)		3,503
Total marketable securities	$	40,299

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, 201 6	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

December 31, 201 5	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	1,000	$	—	$	—	$	1,000
Commercial paper		—		38		—		38
Short term marketable investments:
Available-for-sale securities		—		37,539		—		37,539
Total assets at fair value	$	1,000	$	37,577	$	—	$	38,577

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,

2016

is less than

months and all of these investments are rated by S&P and Moody’s at A or better.

December

31,

2014,

the Company evaluated the fair values of its intangible assets, which are classified within Level

of the fair value hierarchy. With respect to the purchased intangible assets associated with the Iridex acquisition in

2012,

the Company determined that there was impairment in the value of these intangible assets based on an undiscounted cash flow model. The recorded impairment charge of the purchased intangibles was estimated using a discounted cash flow model. This model relied on Level

inputs that included expected future cash flow streams as well as a market discount rate that are subject to uncertainties that are difficult to predict.

Note 3 - Balance Sheet Detail

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Supplemental Balance Sheet Disclosures [Text Block]

NOTE

—BALANCE SHEET DETAIL

Inventories

Inventories consist of the following (in thousands):

	December 31,
	2016		201 5
Raw materials	$	10,966	$	7,982
Finished goods		4,011		4,096
Total	$	14,977	$	12,078

Property and Equipment, net

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

	December 31,
	201 6			201 5
Leasehold improvements	$	652		$	822
Office equipment and furniture		2,973			2,970
Machinery and equipment		5,435			4,662
		9,060			8,454
Less: Accumulated depreciation		(7,153	)		(6,981	)
Property and equipment, net	$	1,907		$	1,473

Included in machinery and equipment are financed vehicles used by the Company’s North American sales employees. As of

December

31,

2016

and

2015,

the gross capitalized value of the leased vehicles was

$1.4

million and

$862,000

and the related accumulated depreciation was

$492,000

and

$374,000,

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,

2016

and

2015

were as follows (in thousands):

	Gross Carrying Amount		Accumulated Amortization & Impairment Amount		Net Amount
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
December 31, 2015
Patent sublicense	$	1,218	$	1,218	$	—
Customer relationship intangible related to acquisition		2,510		2,367		143
Other identified intangible assets related to acquisition		780		780		—
Other intangible		155		155		—
Goodwill		1,339		—		1,339
Total	$	6,002	$	4,520	$	1,482

As of

December

31,

2014,

the Company evaluated the recoverability of its long-lived assets. Relating to the purchased intangible assets associated with the Iridex acquisition in

2012,

due to the discontinuation of the manufacture and sale of all products acquired, lower than projected future service revenue, and lower than projected revenue expected from the distributor relationships acquired, the Company concluded based on future undiscounted cash flows that the remaining carrying value of these assets was impaired. As a result, the Company recorded an impairment charge of

$650,000

in cost of revenue.

Amortization expense (excluding the impairment charge described above) in the

2016,

2015,

and

2014

fiscal years for intangible assets was

$141,000,

$452,000,

and

$773,000,

respectively.

Based on intangible assets recorded at

December

31,

2016,

and assuming no subsequent additions to, or impairment of the underlying assets, the remaining annual amortization expense will be as follows (in thousands):

Year ending December 31,	Amount
2017	$	2
Total	$	2

Accrued Liabilities

Accrued liabilities consist of the following (in thousands):

	December 31,
	201 6		201 5
Accrued payroll and related expenses	$	9.036	$	7,726
Accrued sales tax		2,373		1,935
Warranty liability		2,461		1,819
Other accrued liabilities		3,527		2,354
Total	$	17,397	$	13,834

Note 4 - Warranty and Service Contracts

12 Months Ended

Dec. 31, 2016

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,
	201 6			201 5
Balance at beginning of year	$	1,819		$	1,167
Add: Accruals for warranties issued during the year		5,375			4,134
Less: Settlements and expirations made during the year		(4,733	)		(3,482	)
Balance at end of year	$	2,461		$	1,819

Deferred Service Contract Revenue (in thousands)

	December 31,
	201 6			201 5
Balance at beginning of year	$	10,469		$	12,949
Add: Payments received		12,344			10,378
Less: Revenue recognized		(13,382	)		(12,858	)
Balance at end of year	$	9,431		$	10,469

Costs incurred under service contracts in

2016,

2015

and

2014

amounted to

$6.7

million,

$6.2

million, and

$6.6

million, respectively, and are recognized as incurred.

Note 5 - Stockholders' Equity, Stock Plans and Stock-based Compensation Expense

12 Months Ended

Dec. 31, 2016

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,

2016,

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, or

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

1/48

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

1/3

on the

one

year anniversary of the vesting commencement date and

1/36

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. Additionally, in

2016,

one

of our non-employee directors was granted

6,500

RSUs for consulting services rendered to the Company. In the years ended

December

31,

2016,

2015

and

2014,

the Company issued

45,350,

21,020

and

38,688

RSUs, respectively, to its non-employee directors.

In the years ended

December

31,

2016,

2015

and

2014

the Company’s Board of Directors granted

229,865,

107,417

and

211,250

respectively, of RSUs 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 RSUs granted to the executive officers vest 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. 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.

In the years ended

December

31,

2016,

2015

and

2014

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

204,976,

74,667

and

105,000

of PSUs. The PSUs vest over a period of

months,

8.5

months and

months, respectively, subject to the recipient’s continued service and achievement of the pre-established operational goals related to revenue and operating income improvement. For the

2015

PSU awards, in addition to operational goals, there was a market-based goal as well. At the vest date, the Company issues fully-paid up common stock, based on the degree of achievement of the pre-established targets.

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:

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

2016,

2015

and

2014.

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,

2016,

2015

and

2014,

under the

2004

ESPP, the Company issued

79,922,

55,872

and

52,759

shares, respectively. At

December

31,

2016,

770,063

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, 20 1 3		709,483			3,792,162		$	9.42		4.2	$	5.1
Additional shares reserved ( 2 )		200,000			—			—
Options granted		(486,300	)		486,300		$	9.78
Options exercised		—			(396,970	)	$	8.33
Options cancelled (expired or forfeited)		418,925			(418,925	)	$	11.15
Stock awards granted		(764,394	)		—			—
Stock awards cancelled (expired or forfeited)		52,046			—			—
Balances as of December 31, 201 4		129,760			3,462,567		$	9.39		3.4	$	5.7
Additional shares reserved ( 3 )		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, 201 5		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
Exercisable as of December 31, 201 6					767,277		$	8.92		3.0	$	6.5
Vested and expected to vest, net of estimated forfeitures, as of December 31, 2016					1,069,923		$	9.47		3.6	$	8.4

(1)	Based on the closing stock price of the Company’s stock of $ 17.35 on December 3 0 , 201 6 , $ 12.79 on December 3 1 , 201 5, $10.68 on December 31 2014 and $ 10.18 on December 3 0 , 201 3 .
(2)	Approved by Board of Directors in 201 4, approved by stockholders in 201 5 .
(3)	Approved by stockholders in 2015 .

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,

2016.

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

2016,

2015

and

2014

was

$3.6

million,

$5.1

million, and

$824,000,

respectively. The options outstanding and exercisable at

December

31,

2016

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			158,643		2.57		158,643	$	6.88
$7.15	–	$8.52		32,750		1.85		32,750		7.71
	$8.72			127,995		1.40		127,995		8.72
	$8.80			213,741		3.46		166,370		8.80
$8.91	–	$9.65		144,460		4.19		100,019		9.31
$9.97	–	$10.03		115,000		4.66		67,605		9.99
$10.24	-	$10.86		114,133		3.87		55,394		10.30
$10.90	–	$11.98		116,250		5.66		24,792		11.18
$13.40	-	$14.04		88,500		5.87		31,938		13.67
	$15.32			5,000		5.56		1,771		15.32
$6.88	–	$15.32		1,116,472		3.74		767,277	$	8.92

As of

December

31,

2015

there were

1,561,916

options that were exercisable at a weighted average exercise price of

$9.05.

Stock Awards

(RSU and PSU)

Activity Table

Information with respect to restricted stock units’ and performance stock units’ 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, 201 3		179,465		$	8.34			$	1,827
Granted		360,563		$	9.72
Vested (3)		(81,157	)	$	8.62	$	777 (4)
Forfeited		(24,550	)	$	8.14
Outstanding at December 31, 201 4		434,321		$	9.31			$	4,639
Granted		203,104		$	14.81
Vested (3)		(222,220	)	$	11.79	$	3,285 (5)
Forfeited		(43,575	)	$	9.09
Outstanding at December 31, 201 5		371,630		$	12.39			$	4,753
Granted		480,191		$	10.80
Vested (3)		(172,990	)	$	12.56	$	1,906 (6)
Forfeited		(233,514	)	$	11.36
Outstanding at December 31, 201 6		445,317		$	11.15			$	7,726

(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 $ 17.35 on December 31, 201 6 , $ 12.79 on December 3 1 , 201 5, $10.68 on December 30, 2014 and $ 10.18 on December 31, 201 3 .
(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 $ 699 ,000.
(5)	On the grant date, the fair value for these vested awards was $ 2.6 million .
(6)	On the grant date, the fair value for these vested awards was $ 2.2 million .

Stock-Based Compensation

Stock-based compensation expense for stock options, restricted stock units, performance stock units and ESPP shares for the year ended

December

31,

2016,

2015

and

2014

was as follows (in thousands):

	Year Ended December 31,
	201 6		201 5		201 4
Stock options	$	989	$	1,438	$	1,811
RSUs		1,508		1,297		875
PSUs		967		1,167		455
ESPP		249		182		158
Total stock-based compensation expense	$	3,713	$	4,084	$	3,299

As of

December

31,

2016,

the unrecognized compensation cost, net of expected forfeitures, was

$3.3

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

1.66

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

$110,000,

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

2016,

2015

and

2014

was

$9.5

million,

$10.1

million and

$3.6

million. There was

direct tax benefit (deficit) in

2016,

2015

2014.

The Company elected to account for the indirect effects of stock-based awards, primarily the research and development tax credit, through the Statement of Operations.

Total stock-based compensation expense recognized during the year ended

December

31,

2016,

2015

and

2014

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

	Year Ended December 31,
	2016		201 5		201 4
Cost of revenue	$	341	$	447	$	560
Sales and marketing		1,179		1,054		641
Research and development		596		662		581
General and administrative		1,597		1,921		1,517
Total stock-based compensation expense	$	3,713	$	4,084	$	3,299

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
	201 6			201 5			201 4			201 6			201 5			201 4

Expected term (in years) (1)		3.83			3.24			4.18			0.50			0.50			0.50
Risk-free interest rate (2)		1.09	%		0.90	%		1.31	%		0.46	%		0.17	%		0.06	%
Volatility (3)		40	%		30	%		41	%		39	%		36	%		37	%
Dividend yield (4)		—	%		—	%		—	%		—	%		—	%		—	%

Weighted average estimated fair value at grant date	$	3.72		$	4.78		$	3.36		$	3.22		$	3.51		$	2.65

(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.
(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.

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

2016

ranged from

17%.

Stock Awards

Withholdings

For Stock Awards granted to employees, the number of shares issued on the date the Stock Awards vest is net of the tax withholding requirements paid on behalf of the employees. In

2016,

2015

and

2014,

the Company withheld

56,157,

68,101,

and

15,769

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

$619,000,

$1.0

million, and

$156,000,

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 the Company’s Stock Repurchase Program, originally adopted in

November

2012

and modified on

August

2013.

The Stock Repurchase Program permits the Company to purchase its common stock through a

10b5

program based on predetermined pricing and volume as well as open-market purchases that are subject to management discretion and regulatory restrictions. On

February

18,

2015,

the Company’s Board of Directors approved the expansion of its Stock Repurchase Program from

$10

million to

$40

million. In the year ended

December

31,

2015,

the Company repurchased

2,818,038

shares of its common stock for approximately

$40.0

million.

February

2016,

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

$10

million. In the year ended

December

31,

2016,

the Company repurchased

455,311

shares of its common stock for approximately

$4.9

million. As of

December

31,

2016,

there remained an additional

$5.1

million to be purchased. On

February

13,

2017

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

million. The Company plans to make the repurchases from time to time through open market transactions at prevailing prices and/or through privately-negotiated transactions, and/or through a pre-arranged Rule

10b5

trading plan.

Adjustment to Retained Earnings

The Company early adopted ASU

2016

in the

fourth

quarter of

2016

with effect from the beginning of

2016

and recorded a net increase to prior-period retained earnings of

$49,000

relating to the cumulative effect adjustment upon adoption. For a detailed discussion of the impact of the adoption, refer to “Note

6—Income

Taxes.”

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References + Details

Note 6 - Income Taxes

12 Months Ended

Dec. 31, 2016

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.

The Company’s income (loss) before provision for income taxes consisted of the following (in thousands):

	Year Ended December 31,
	201 6		201 5			201 4
U.S.	$	2,207	$	(4,588	)	$	(10,592	)
Foreign		513		360			199
Income (loss) before income taxes	$	2,720	$	(4,228	)	$	(10,393	)

The components of the provision for income taxes are as follows (in thousands):

	Year Ended December 31,
	201 6			201 5			201 4
Current:
Federal	$	—		$	(7	)	$	(7	)
State		16			23			19
Foreign		131			218			110
Total Current		147			234			122
Deferred:
Federal		(24	)		33			32
State		(2	)		—			—
Foreign		22			(55	)		65
Total Deferred		(4	)		(22	)		97
Tax provision	$	143		$	212		$	219

The Company’s deferred tax asset consists of the following (in thousands):

	December 31,
	201 6			201 5
Net operating loss carryforwards	$	15,487	*	$	14,231
Stock-based compensation		1,486			2,462
Other accruals and reserves		2,160			4,679
Credits		9,006	*		4,477
Foreign		377			350
Accrued warranty		890			657
Depreciation and amortization		2,627			1,105
Other		95			5
Deferred tax asset before valuation allowance		32,128			27,966
Valuation allowance		(31,751	)*		(27,616	)
Deferred tax asset after valuation allowance		377			350
Deferred tax liability on goodwill		(85	)		(103	)
Net deferred tax asset	$	292		$	247

* Includes impact of adopting ASU

2016

in the

fourth

quarter of

2016

with effect from the beginning of

2016,

which resulted in excess windfall net operating loss and tax credit carryforwards that were converted into deferred tax net operating losses and tax credits, with a corresponding increase in valuation allowance as of the beginning of

2016.

The Company’s deferred tax asset balance is reported in the following captions in the Consolidated Balance Sheets (in thousands):

	December 31,
	201 6			201 5
Deferred tax asset	$	377		$	350
Income tax liability		(85	)		(103	)
Net deferred tax asset after valuation allowance	$	292		$	247

The differences between the U.S. federal statutory income tax rates to the Company’s effective tax rate are as follows:

	Year Ended December 31,
	201 6			2015*		2014*
U.S. federal statutory income tax rate		34.00	%	34.00	%	34.00	%
State tax rate, net of federal benefit		(14.56	)	1.94		1.62
Benefit for research and development credit		(9.25	)	15.92		7.24
Stock-based compensation		14.36		(19.19	)	(5.56	)
Foreign rate differential		(0.16	)	(1.47	)	(1.04	)
True ups		(0.67	)	—		—
Other		6.08		(4.58	)	(1.78	)
Valuation allowance		(24.57	)	(31.63	)	(36.58	)
Effective tax rate		5.23	%	(5.01	)%	(2.10	)%

*Certain items have changed for classification purposes.

The Company recognizes deferred tax assets for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carryforwards. The Company records a valuation allowance to reduce the deferred tax assets to their estimated realizable value, when it is more likely than not that it will not be able to generate sufficient future taxable income to realize the net carrying value. The Company has recorded a full valuation allowance against its U.S. federal and state deferred tax assets due to its history of operating losses. In the years ended

December

31,

2016,

2015

and

2014,

there was a net increase in the valuation allowance of

$4.1

million,

$1.6

million, and

$3.3

million, respectively.

As of

December

31,

2016,

the Company had cumulative net operating loss carry-forwards for federal and state income tax reporting purposes of approximately

$42.0

million and

$21.8

million, respectively. The federal net operating loss carry-forwards if not utilized will begin to expire beginning in

2029

through the year

2035

and the state net operating loss carry-forwards if not utilized will expire beginning in

2029

through the year

2035.

The Company maintained a valuation allowance against these net operating loss carry-forwards as of

December

31,

2016.

As of

December

31,

2016,

the Company had research and development tax credits for federal and state income tax purposes of approximately

$5.0

million and

$6.2

million, respectively. The federal research and development tax credits if not utilized will expire beginning in

2024

through the year

2035.

The state research and development credits can be carried forward indefinitely, except for

$268,000,

which will expire beginning in

2020

through

2021.

The Company maintained a valuation allowance against these tax credits as of

December

31,

2016.

March

2016,

the FASB issued ASU No.

2016

09,

Improvements to Employee Share-Based Payment Accounting

as part of its simplification initiative, which involves several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The changes required by this Update are effective for annual periods beginning after

December

15,

2016,

and interim periods within those annual periods. Prior to ASU

2016

09,

tax benefits in excess of compensation cost (“windfalls”) were recorded in equity, and tax deficiencies (“shortfalls”) were recorded in equity to the extent of previous windfalls, and then to the income statement. While the simplification reduces some of the administrative complexities by eliminating the need to track a “windfall pool,” it increases the volatility of income tax expense. The ASU also removes the requirement to delay recognition of a windfall tax benefit until it reduces current taxes payable. Under the new guidance, the benefit is recorded when it arises, subject to normal valuation allowance considerations. Under the new guidance, entities are permitted to make an accounting policy election for the impact of forfeitures on the recognition of expense for share-based payment awards. Forfeitures can be estimated or recognized when they occur. Estimates of forfeitures are still required in certain circumstances, such as at the time of modification of an award or issuance of a replacement award in a business combination.

In accordance with ASU

2016

09,

the Company decided to early adopt ASU

2016

in the

fourth

quarter of

2016

with effect from the beginning of

2016,

and:

Elected to continue to estimate its forfeiture rate, rather than recognizing forfeitures as they occur;

Recorded a net increase to prior-period retained earnings of

$49,000

relating to the cumulative effect adjustment upon adoption; and

Excess windfall net operating loss and tax credit carryforwards were converted into deferred tax net operating losses of

$1.2

million and tax credits of

$3.9

million, with a corresponding increase in valuation allowance as of the beginning of

2016

$5.2

million.

The utilization of NOL carryforwards and tax credits

may

be subject to a substantial annual limitation due to the ownership change limitations provided by Section

382

of the U.S. Internal Revenue Code (“IRC”), and similar state provisions. The annual limitation

may

result in the expiration of NOL carryforwards and tax credits before utilization. The Company completed an IRC Section

382

analysis through

December

31,

2016

and determined that there were no significant limitations to the utilization of NOL or tax credit carryforwards. As such, the NOL and tax credit carryforwards presented are not expected to expire unutilized, unless there is a future ownership change as determined by Section

382

of the IRC.

Undistributed earnings of the Company’s foreign subsidiaries at

December

31,

2016

and

2015

were approximately

$3.1

million and

$2.8

million, respectively, and are considered to be indefinitely reinvested and, accordingly, no provision for federal and state income taxes has been provided thereon. If these foreign earnings were to be repatriated in the future, the related U.S. tax liability would be reduced by any foreign income taxes previously paid on these earnings. Because of the availability of U.S. foreign tax credits, the determination of the unrecognized deferred tax liability on these earnings is not practicable.

Uncertain Tax Positions

The Company establishes reserves for 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 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. If the Company ultimately determines that payment of these amounts are not more-likely-than-not, the Company will reverse the liability and recognize a tax benefit during the period in which the Company makes the determination. 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. The Company’s policy is to include interest and penalties related to gross unrecognized tax benefits within the provision for income taxes.

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

2005

through

2016

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

2016

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

The following table summarizes the activity related to the Company’s gross unrecognized tax benefits in

December

31,

2014

December

31,

2016

(in thousands):

	Year Ended December 31,
	2016		201 5		201 4
Balance at beginning of year	$	651	$	597	$	535
Increases related to prior year tax positions		—		—		—
Increases related to current year tax positions		56		54		62
Decreases related to lapsing of statute of limitations		—		—		—
Balance at end of year	$	707	$	651	$	597

The Company’s total unrecognized tax benefits and accrued interest that, if recognized, would affect its effective tax rate at

December

31,

2016

and

2015,

were approximately

$82,000

and

$78,000,

respectively. As of

December

31,

2016

and

2015,

the Company had accrued approximately

$49,000

and

$45,000

for payment of interest, respectively. Interest included in the provision for income taxes was not significant in all the periods presented. The Company has

not

accrued any penalties related to its uncertain tax positions as it believes that it is more likely than not that there will not be any assessment of penalties. The Company expects that the amount of unrecognized tax benefits will not materially change within the next

months.

Note 7 - Net Income (Loss) Per Share

12 Months Ended

Dec. 31, 2016

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, restricted stock units and performance stock units), which is calculated based on the average share price for each fiscal period using the treasury stock method. Under the treasury stock method, the amount the employee must pay for the equity award, and the amount of compensation cost for future service that the Company has not yet recognized, are all assumed to be used to repurchase shares. Diluted 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 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,
	2016		201 5		201 4
Options to purchase common stock		220		2,575		3,489
Restricted stock units		24		296		213
Employee stock purchase plan shares		—		93		86
Performance stock units		—		24		37
Total		244		2,988		3,825

Note 8 - Defined Contribution Plan	12 Months Ended
Note 8 - Defined Contribution Plan	Dec. 31, 2016
Notes to Financial Statements
Pension and Other Postretirement Benefits Disclosure [Text Block]	NOTE 8 —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 2016, 2015 and 2014, the Company made discretionary contributions under the 401(k) Plan of $262,000, $244,000 and $211,000, 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, 2016, and the related expense for each of the three years then ended was not significant.

Note 9 - Segment Information and Revenue by Geograpy and Products

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

NOTE

—SEGMENT

INFORMATION AND REVENUE BY

GEOGRAP

Y AND PRODUCTS

Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, or decision-making group, in making decisions how to allocate resources and assess performance. The Company’s chief decision maker, as defined under the FASB’s ASC

280

guidance, is a combination of the Chief Executive Officer and the Executive Vice President and Chief Financial Officer. To date, the Company’s chief decision maker has 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 6		201 5		201 4
Revenue mix by geography:
United States	$	65,513	$	48,916	$	35,494
Japan		14,727		11,504		13,328
Asia, excluding Japan		13,445		15,596		11,023
Europe		7,539		7,728		7,792
Rest of the world		16,832		11,017		10,501
Consolidated total	$	118,056	$	94,761	$	78,138
Revenue mix by product category:
Products	$	92,721	$	71,223	$	53,106
Hand Piece Refills		2,498		2,910		3,714
Skincare		3,809		2,889		3,479
Total product revenue		99,028		77,022		60,299
Service		19,028		17,739		17,839
Consolidated total	$	118,056	$	94,761	$	78,138

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9038-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 33
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8971-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 12
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+ Details

Note 10 - Commitments and Contingencies

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

NOTE

—COMMITMENTS AND CONTINGENCIES

Facility Leases

As of

December

31,

2016,

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
2017	$	1,912
2018		189
2019		35
2020		5
Future minimum rental payments	$	2,141

Gross rent expense recognized in the years ended

December

31,

2016,

2015

and

2014

was

$1.6

million,

$1.5

million and

$1.5

million, respectively.

Vehicle

Leases

As of

December

31,

2016,

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

Year Ending December 31,	Amount
2017	$	367
2018		354
2019		266
2020		6
Future minimum lease payments	$	993

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,

2016.

Indemnifications

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

Litigation and Litigation Settlements

The Company is named from time to time as a party to product liability and contractual lawsuits in the normal course of business.

The Company routinely assesses the likelihood of any adverse judgments or outcomes related to legal matters and claims, as well as ranges of probable losses. A determination of the amount of the reserves required, if any, for these contingencies is made after analysis of each known issue, historical experience, whether it is more likely than not that the Company shall incur a loss, and whether the loss is estimable. As of

December

31,

2016

and

2015,

the Company had accrued

$138,000

and

$110,000,

respectively, related to pending product liability and contractual lawsuits.

Note 11 - Related Parties	12 Months Ended
Note 11 - Related Parties	Dec. 31, 2016
Notes to Financial Statements
Related Party Transactions Disclosure [Text Block]	NOTE 1 1 — RELATED PARTIES In 2016, the Company paid $182,100 to Mr. Dave Gollnick, a founder and director of the Company, for product development, clinical sales and marketing support services. In addition, the Company granted him 6,500 RSUs with a grant-date fair value of $87,100, that vest over three (3) 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.

Note 12 - Subsequent Events	12 Months Ended
Note 12 - Subsequent Events	Dec. 31, 2016
Notes to Financial Statements
Subsequent Events [Text Block]	NOTE 1 2 —SUBSEQUENT EVENT S On February 8, 2016, the Company’s Board of Directors approved the expansion of its Stock Repurchase Program by an additional $10 million. In the year ended December 31, 2016, the Company repurchased 455,311 shares of its common stock for approximately $4.9 million. As of December 31, 2016, there remained an additional $5.1 million to be purchased. On February 13, 2017 the Company’s Board of Directors approved the expansion of its Stock Repurchase Program by an additional $5 million. The Company plans to make the repurchases from time to time through open market transactions at prevailing prices and/or through privately-negotiated transactions, and/or through a pre-arranged Rule 10b5 - 1 trading plan.

Note 13 - Supplementary Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Quarterly Financial Information [Text Block]

SUPPLEMENTARY FINANCIAL DATA (UNAUDITED)

(In thousands, except per share amounts)

Quarter ended:	Dec. 31, 201 6			Sept. 30, 201 6		June 30, 201 6			March 31, 201 6			Dec. 31, 201 5		Sept. 30, 201 5			June 30, 201 5			March 31, 201 5
Net revenue	$	37,875		$	30,281	$	27,477		$	22,423		$	30,042	$	23,085		$	22,563		$	19,071
Cost of revenue		15,962			12,538		11,472			9,949			12,145		9,594			9,687			9,052
Gross profit		21,913			17,743		16,005			12,474			17,897		13,491			12,876			10,019
Operating expenses:
Sales and marketing		11,561			10,574		10,712			8,716			9,899		8,790			9,066			8,187
Research and development		2,897			2,914		2,712			2,709			2,812		2,748			2,728			2,445
General and administrative		3,010			2,716		3,997			3,220			3,189		2,937			3,014			2,989
Total operating expenses		17,468			16,204		17,421			14,645			15,900		14,475			14,808			13,621
Income (loss) from operations		4,445			1,539		(1,416	)		(2,171	)		1,997		(984	)		(1,932	)		(3,602	)
Interest and other income, net		(204	)		166		217			144			105		84			96			8
Income (loss) before income taxes		4,241			1,705		(1,199	)		(2,027	)		2,102		(900	)		(1,836	)		(3,594	)
Income tax provision		28			61		30			24			52		57			53			50
Net income (loss)	$	4,213		$	1,644	$	(1,229	)	$	(2,051	)	$	2,050	$	(957	)	$	(1,889	)	$	(3,644	)
Net income (loss) per share—basic	$	0.31		$	0.12	$	(0.09	)	$	(0.16	)	$	0.16	$	(0.07	)	$	(0.13	)	$	(0.25	)
Net income (loss) per share—diluted	$	0.30		$	0.12	$	(0.09	)	$	(0.16	)	$	0.15	$	(0.07	)	$	(0.13	)	$	(0.25	)
Weighted average number of shares used in per share calculations:
Basic		13,591			13,163		13,131			13,010			12,978		13,827			14,441			14,611
Diluted		14,201			13,544		13,131			13,010			13,591		13,827			14,441			14,611

Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Schedule of Valuation and Qualifying Accounts Disclosure [Text Block]

SCHEDULE II

CUTERA, INC.

VALUATION

AND QUALIFYING ACCOUNTS

(in thousands)

For the Year

Ended

December

31,

201

and

	Balance at Beginning of Year		Additions		Deductions		Balance at End of Year
Deferred tax assets valuation allowance
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
Year ended December 31, 2014	$	22,762	$	3,780	$	496	$	26,046

	Balance at Beginning of Year		Additions		Deductions		Balance at End of Year
Allowance for doubtful accounts receivable
Year ended December 31, 2016	$	4	$	21	$	4	$	21
Year ended December 31, 2015	$	—	$	4	$	—	$	4
Year ended December 31, 2014	$	19	$	4	$	23	$	—

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

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

Description of Operations and Principles of Consolidation

lighten

, excel HR

, truSculpt

, excel V

and

xeo

®.

Titan

and

truSculpt

) and the distribution of

third

Titan

and

truSculpt

) 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, Hong Kong, Japan, Spain (until

January

2017),

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

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

Cash, Cash Equivalents,

and

Marketable Investments

three

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

three

one

Fair Value Measurement, Policy [Policy Text Block]

Fair Value Measurements

The fair value hierarchy distinguishes between

(1)

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

(2)

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

3).

The

three

levels of the fair value hierarchy are described below:

●

Level

Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities.

●

Level

●

Level

Marketable Securities, Policy [Policy Text Block]

Impairment of Marketable Investments

December

31,

2016,

2015,

and

2014.

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

Allowance for Sales Returns and Doubtful Accounts

may

affect a customer’s ability to pay.

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

Concentration of Credit Risk and Other Risks and Uncertainties

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

eighteen

months.

December

31,

2016

and

2015,

there was

one

customer who represented

12%

and

10%,

respectively, of the Company’s net accounts receivable.

During the years ended

December

31,

2016,

2015,

and

2014,

domestic revenue accounted for

55%,

52%,

and

45%,

respectively, of total revenue, while international revenue accounted for

45%,

48%,

and

55%,

respectively, of total revenue. No single customer represented more than

10%

of total revenue for any of the years ended

December

31,

2016,

2015,

and

2014.

Inventory, Policy [Policy Text Block]

Inventories

Inventories are stated at the lower of cost or market, cost being determined on a standard cost basis, which approximates actual cost on a

first

-in,

first

-out basis, and market being determined as the lower of replacement cost or net realizable value.

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,

2016

and

2015,

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

$2.4

and

$2.3

million, respectively.

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

Property and Equipment

Property and equipment are stated at cost, net of accumulated depreciation. Depreciation recognized is 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

Depreciation expense related to property and equipment for

2016,

2015

and

2014,

was

$841,000,

$734,000

and

$562,000

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 Intangible Assets

The Company’s intangible assets are comprised of purchased technology sub-licenses, acquired customer relationships, and those assets acquired in conjunction with an asset acquisition in

February

2012

being amortized on a declining-balance basis, over their respective useful lives, which range from approximately

months to

years.

Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]

Impairment of Long-lived Assets

Goodwill is not amortized, but is tested for impairment at least annually or as circumstances indicate their value

may

no longer be recoverable. The goodwill impairment test is performed annually during the

fourth

fiscal quarter (or earlier if impairment indicators arise). 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,

2016,

there has been no impairment of goodwill.

may

not be recoverable. The Company recognizes such impairment in the event the net book value of such assets exceeds the future undiscounted cash flows attributable to such assets. In

2014,

the Company’s impairment review indicated that certain purchased long-lived assets associated with the Iridex acquisition were impaired and an impairment charge of

$650,000

was recognized. No other impairment losses were incurred in the periods presented.

Standard Product Warranty, Policy [Policy Text Block]

Warranty Obligations

The Company provides a standard

one

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

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 assured.

Multiple-element arrangements

A multiple-element arrangement includes the sale of

one

or more tangible product offerings with

one

third

With respect to the sale of its

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.

December

31,

2016,

2015,

and

2014

was

$19.0

million,

$17.7

million, and

$17.8

million, respectively.

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

Titan

Research and Development Expense, Policy [Policy Text Block]

Research and Development Expenditures

third

party contractors and clinical and regulatory fees.

Advertising Costs, Policy [Policy Text Block]

Advertising Costs

Advertising costs are included as part of sales and marketing expense and are expensed as incurred. Advertising expenses for

2016,

2015

and

2014

were

$1.3

million,

$1.2

million and

$1.6

million, respectively.

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

Stock-based Compensation

may

Stock-based compensation expense, net of estimated forfeitures, is recognized over the requisite service period.

Income Tax, Policy [Policy Text Block]

Income Taxes

two

of which involve the exercise of significant judgment. The Company maintains a full valuation allowance against its U.S. federal and state deferred tax asset due to a history of operating losses.

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

740.

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]

Comprehensive Loss

Foreign Currency Transactions and Translations Policy [Policy Text Block]

Foreign Currency

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,

2016.

Segment Reporting, Policy [Policy Text Block]

Segments

The Company operates in

one

segment. Management uses

one

measurement of profitability and does not segregate its business for internal reporting. As of

December

31,

2016

and

2015,

98%

of 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 Pronouncements

May

2014,

the Financial Accounting Standards Board ("FASB") issued Accounting Standards Updates (“ASU”) No.

2014

09,

Revenue from Contracts with Customers

2016,

August

2015,

the FASB deferred the effective date of this standards update to fiscal years beginning after

December

15,

2017,

with early adoption permitted on the original effective date of fiscal years beginning after

December

15,

2016.

July

2015,

the FASB issued ASU No.

2015

11,

Simplifying the Measurement of Inventory

two

first

-out) or the retail inventory method. These changes became effective on

January

2017

and management does not expect the updated standard to have a material impact on the reported inventory balances in the Consolidated Financial Statements and related disclosures.

February

2016,

the FASB issued ASU

2016

02,

Leases

. This guidance establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and lease liability on the balance sheet for all leases with terms longer than

December

15,

2018.

Adopted Accounting Pronouncements

The Company early adopted ASU

2016

in the

fourth

quarter of

2016.

For a detailed discussion of the impact of the adoption, refer to “Note

6—Income

Taxes.”

Note 2 - Investment Securities (Tables)

12 Months Ended

Dec. 31, 2016

Notes Tables

Investment [Table Text Block]

	December 31,
	2016		20 15
Cash and cash equivalents:
Cash	$	6,672	$	9,830
Cash equivalents:
Money market funds		6,053		1,000
Commercial paper		1,050		38
Total cash and cash equivalents		13,775		10,868

Marketable securities:
U.S. government notes		8,398		7,779
U.S. government agencies		3,916		12,608
Municipal securities		1,325		4,346
Commercial paper		12,299		4,040
Corporate debt securities		14,361		8,766
Total marketable securities		40,299		37,539

Total cash, cash equivalents and marketable securities	$	54,074	$	48,407

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

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

December 31, 201 5	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Market Value
Cash and cash equivalents	$	10,868	$	—	$	—		$	10,868

Marketable investments
U.S. government notes		7,780		1		(2	)		7,779
U.S. government agencies		12,630		3		(25	)		12,608
Municipal securities		4,344		2		—			4,346
Commercial paper		4,041		1		(2	)		4,040
Corporate debt securities		8,783		—		(17	)		8,766
Total marketable securities		37,578		7		(46	)		37,539

Total cash, cash equivalents and marketable securities	$	48,446	$	7	$	(46	)	$	48,407

Investments Classified by Contractual Maturity Date [Table Text Block]

	Amount
Due in less than one year (fiscal year 2017)	$	36,796
Due in 1 to 3 years (fiscal year 2018-2019)		3,503
Total marketable securities	$	40,299

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

December 31, 201 6	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

December 31, 201 5	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	1,000	$	—	$	—	$	1,000
Commercial paper		—		38		—		38
Short term marketable investments:
Available-for-sale securities		—		37,539		—		37,539
Total assets at fair value	$	1,000	$	37,577	$	—	$	38,577

- 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 3 - Balance Sheet Detail (Tables)

12 Months Ended

Dec. 31, 2016

Notes Tables

Schedule of Inventory, Current [Table Text Block]

	December 31,
	2016		201 5
Raw materials	$	10,966	$	7,982
Finished goods		4,011		4,096
Total	$	14,977	$	12,078

Property, Plant and Equipment [Table Text Block]

	December 31,
	201 6			201 5
Leasehold improvements	$	652		$	822
Office equipment and furniture		2,973			2,970
Machinery and equipment		5,435			4,662
		9,060			8,454
Less: Accumulated depreciation		(7,153	)		(6,981	)
Property and equipment, net	$	1,907		$	1,473

Schedule of Intangible Assets and Goodwill [Table Text Block]

	Gross Carrying Amount		Accumulated Amortization & Impairment Amount		Net Amount
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
December 31, 2015
Patent sublicense	$	1,218	$	1,218	$	—
Customer relationship intangible related to acquisition		2,510		2,367		143
Other identified intangible assets related to acquisition		780		780		—
Other intangible		155		155		—
Goodwill		1,339		—		1,339
Total	$	6,002	$	4,520	$	1,482

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

Year ending December 31,	Amount
2017	$	2
Total	$	2

Schedule of Accrued Liabilities [Table Text Block]

	December 31,
	201 6		201 5
Accrued payroll and related expenses	$	9.036	$	7,726
Accrued sales tax		2,373		1,935
Warranty liability		2,461		1,819
Other accrued liabilities		3,527		2,354
Total	$	17,397	$	13,834

Note 4 - Warranty and Service Contracts (Tables)

12 Months Ended

Dec. 31, 2016

Notes Tables

Schedule of Product Warranty Liability [Table Text Block]

	December 31,
	201 6			201 5
Balance at beginning of year	$	1,819		$	1,167
Add: Accruals for warranties issued during the year		5,375			4,134
Less: Settlements and expirations made during the year		(4,733	)		(3,482	)
Balance at end of year	$	2,461		$	1,819

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

	December 31,
	201 6			201 5
Balance at beginning of year	$	10,469		$	12,949
Add: Payments received		12,344			10,378
Less: Revenue recognized		(13,382	)		(12,858	)
Balance at end of year	$	9,431		$	10,469

Note 5 - Stockholders' Equity, Stock Plans and Stock-based Compensation Expense (Tables)

12 Months Ended

Dec. 31, 2016

Notes Tables

Schedule of 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, 20 1 3		709,483			3,792,162		$	9.42		4.2	$	5.1
Additional shares reserved ( 2 )		200,000			—			—
Options granted		(486,300	)		486,300		$	9.78
Options exercised		—			(396,970	)	$	8.33
Options cancelled (expired or forfeited)		418,925			(418,925	)	$	11.15
Stock awards granted		(764,394	)		—			—
Stock awards cancelled (expired or forfeited)		52,046			—			—
Balances as of December 31, 201 4		129,760			3,462,567		$	9.39		3.4	$	5.7
Additional shares reserved ( 3 )		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, 201 5		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
Exercisable as of December 31, 201 6					767,277		$	8.92		3.0	$	6.5
Vested and expected to vest, net of estimated forfeitures, as of December 31, 2016					1,069,923		$	9.47		3.6	$	8.4

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			158,643		2.57		158,643	$	6.88
$7.15	–	$8.52		32,750		1.85		32,750		7.71
	$8.72			127,995		1.40		127,995		8.72
	$8.80			213,741		3.46		166,370		8.80
$8.91	–	$9.65		144,460		4.19		100,019		9.31
$9.97	–	$10.03		115,000		4.66		67,605		9.99
$10.24	-	$10.86		114,133		3.87		55,394		10.30
$10.90	–	$11.98		116,250		5.66		24,792		11.18
$13.40	-	$14.04		88,500		5.87		31,938		13.67
	$15.32			5,000		5.56		1,771		15.32
$6.88	–	$15.32		1,116,472		3.74		767,277	$	8.92

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, 201 3		179,465		$	8.34			$	1,827
Granted		360,563		$	9.72
Vested (3)		(81,157	)	$	8.62	$	777 (4)
Forfeited		(24,550	)	$	8.14
Outstanding at December 31, 201 4		434,321		$	9.31			$	4,639
Granted		203,104		$	14.81
Vested (3)		(222,220	)	$	11.79	$	3,285 (5)
Forfeited		(43,575	)	$	9.09
Outstanding at December 31, 201 5		371,630		$	12.39			$	4,753
Granted		480,191		$	10.80
Vested (3)		(172,990	)	$	12.56	$	1,906 (6)
Forfeited		(233,514	)	$	11.36
Outstanding at December 31, 201 6		445,317		$	11.15			$	7,726

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

	Year Ended December 31,
	201 6		201 5		201 4
Stock options	$	989	$	1,438	$	1,811
RSUs		1,508		1,297		875
PSUs		967		1,167		455
ESPP		249		182		158
Total stock-based compensation expense	$	3,713	$	4,084	$	3,299

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

	Year Ended December 31,
	2016		201 5		201 4
Cost of revenue	$	341	$	447	$	560
Sales and marketing		1,179		1,054		641
Research and development		596		662		581
General and administrative		1,597		1,921		1,517
Total stock-based compensation expense	$	3,713	$	4,084	$	3,299

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

	Stock Options									Stock Purchase Plan
	201 6			201 5			201 4			201 6			201 5			201 4

Expected term (in years) (1)		3.83			3.24			4.18			0.50			0.50			0.50
Risk-free interest rate (2)		1.09	%		0.90	%		1.31	%		0.46	%		0.17	%		0.06	%
Volatility (3)		40	%		30	%		41	%		39	%		36	%		37	%
Dividend yield (4)		—	%		—	%		—	%		—	%		—	%		—	%

Weighted average estimated fair value at grant date	$	3.72		$	4.78		$	3.36		$	3.22		$	3.51		$	2.65

Note 6 - Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Notes Tables

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

	Year Ended December 31,
	201 6		201 5			201 4
U.S.	$	2,207	$	(4,588	)	$	(10,592	)
Foreign		513		360			199
Income (loss) before income taxes	$	2,720	$	(4,228	)	$	(10,393	)

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

	Year Ended December 31,
	201 6			201 5			201 4
Current:
Federal	$	—		$	(7	)	$	(7	)
State		16			23			19
Foreign		131			218			110
Total Current		147			234			122
Deferred:
Federal		(24	)		33			32
State		(2	)		—			—
Foreign		22			(55	)		65
Total Deferred		(4	)		(22	)		97
Tax provision	$	143		$	212		$	219

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

	December 31,
	201 6			201 5
Net operating loss carryforwards	$	15,487	*	$	14,231
Stock-based compensation		1,486			2,462
Other accruals and reserves		2,160			4,679
Credits		9,006	*		4,477
Foreign		377			350
Accrued warranty		890			657
Depreciation and amortization		2,627			1,105
Other		95			5
Deferred tax asset before valuation allowance		32,128			27,966
Valuation allowance		(31,751	)*		(27,616	)
Deferred tax asset after valuation allowance		377			350
Deferred tax liability on goodwill		(85	)		(103	)
Net deferred tax asset	$	292		$	247

Schedule of Deferred Tax Reported in Balance Sheet [Table Text Block]

	December 31,
	201 6			201 5
Deferred tax asset	$	377		$	350
Income tax liability		(85	)		(103	)
Net deferred tax asset after valuation allowance	$	292		$	247

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

	Year Ended December 31,
	201 6			2015*		2014*
U.S. federal statutory income tax rate		34.00	%	34.00	%	34.00	%
State tax rate, net of federal benefit		(14.56	)	1.94		1.62
Benefit for research and development credit		(9.25	)	15.92		7.24
Stock-based compensation		14.36		(19.19	)	(5.56	)
Foreign rate differential		(0.16	)	(1.47	)	(1.04	)
True ups		(0.67	)	—		—
Other		6.08		(4.58	)	(1.78	)
Valuation allowance		(24.57	)	(31.63	)	(36.58	)
Effective tax rate		5.23	%	(5.01	)%	(2.10	)%

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

	Year Ended December 31,
	2016		201 5		201 4
Balance at beginning of year	$	651	$	597	$	535
Increases related to prior year tax positions		—		—		—
Increases related to current year tax positions		56		54		62
Decreases related to lapsing of statute of limitations		—		—		—
Balance at end of year	$	707	$	651	$	597

Note 9 - Segment Information and Revenue by Geograpy and Products (Tables)

12 Months Ended

Dec. 31, 2016

Notes Tables

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

	Year Ended December 31,
	201 6		201 5		201 4
Revenue mix by geography:
United States	$	65,513	$	48,916	$	35,494
Japan		14,727		11,504		13,328
Asia, excluding Japan		13,445		15,596		11,023
Europe		7,539		7,728		7,792
Rest of the world		16,832		11,017		10,501
Consolidated total	$	118,056	$	94,761	$	78,138
Revenue mix by product category:
Products	$	92,721	$	71,223	$	53,106
Hand Piece Refills		2,498		2,910		3,714
Skincare		3,809		2,889		3,479
Total product revenue		99,028		77,022		60,299
Service		19,028		17,739		17,839
Consolidated total	$	118,056	$	94,761	$	78,138

Note 10 - Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2016

Notes Tables

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

Year Ending December 31,	Amount
2017	$	1,912
2018		189
2019		35
2020		5
Future minimum rental payments	$	2,141

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

Year Ending December 31,	Amount
2017	$	367
2018		354
2019		266
2020		6
Future minimum lease payments	$	993

Note 13 - Supplementary Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2016

Notes Tables

Quarterly Financial Information [Table Text Block]

Quarter ended:	Dec. 31, 201 6			Sept. 30, 201 6		June 30, 201 6			March 31, 201 6			Dec. 31, 201 5		Sept. 30, 201 5			June 30, 201 5			March 31, 201 5
Net revenue	$	37,875		$	30,281	$	27,477		$	22,423		$	30,042	$	23,085		$	22,563		$	19,071
Cost of revenue		15,962			12,538		11,472			9,949			12,145		9,594			9,687			9,052
Gross profit		21,913			17,743		16,005			12,474			17,897		13,491			12,876			10,019
Operating expenses:
Sales and marketing		11,561			10,574		10,712			8,716			9,899		8,790			9,066			8,187
Research and development		2,897			2,914		2,712			2,709			2,812		2,748			2,728			2,445
General and administrative		3,010			2,716		3,997			3,220			3,189		2,937			3,014			2,989
Total operating expenses		17,468			16,204		17,421			14,645			15,900		14,475			14,808			13,621
Income (loss) from operations		4,445			1,539		(1,416	)		(2,171	)		1,997		(984	)		(1,932	)		(3,602	)
Interest and other income, net		(204	)		166		217			144			105		84			96			8
Income (loss) before income taxes		4,241			1,705		(1,199	)		(2,027	)		2,102		(900	)		(1,836	)		(3,594	)
Income tax provision		28			61		30			24			52		57			53			50
Net income (loss)	$	4,213		$	1,644	$	(1,229	)	$	(2,051	)	$	2,050	$	(957	)	$	(1,889	)	$	(3,644	)
Net income (loss) per share—basic	$	0.31		$	0.12	$	(0.09	)	$	(0.16	)	$	0.16	$	(0.07	)	$	(0.13	)	$	(0.25	)
Net income (loss) per share—diluted	$	0.30		$	0.12	$	(0.09	)	$	(0.16	)	$	0.15	$	(0.07	)	$	(0.13	)	$	(0.25	)
Weighted average number of shares used in per share calculations:
Basic		13,591			13,163		13,131			13,010			12,978		13,827			14,441			14,611
Diluted		14,201			13,544		13,131			13,010			13,591		13,827			14,441			14,611

Schedule II - Valuation and Qualifying Accounts (Tables)

12 Months Ended

Dec. 31, 2016

Notes Tables

Summary of Valuation Allowance [Table Text Block]

	Balance at Beginning of Year		Additions		Deductions		Balance at End of Year
Deferred tax assets valuation allowance
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
Year ended December 31, 2014	$	22,762	$	3,780	$	496	$	26,046

	Balance at Beginning of Year		Additions		Deductions		Balance at End of Year
Allowance for doubtful accounts receivable
Year ended December 31, 2016	$	4	$	21	$	4	$	21
Year ended December 31, 2015	$	—	$	4	$	—	$	4
Year ended December 31, 2014	$	19	$	4	$	23	$	—

Note 1 - Summary of Significant Accounting Policies (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2014
Long-term Investment Marketable Period	1 year
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities	$ 0	$ 0	$ 0
Average Maturity Period of Interest Rate of Auction Securities	1 year 180 days
Inventories Estimated Useful Lives	2 years
Inventory, Finished Goods, Gross	$ 2,400,000	2,300,000
Depreciation	841,000	734,000	562,000
Impairment of Long-Lived Assets Held-for-use	0
Impairment of Intangible Assets (Excluding Goodwill)			650,000
Sales Revenue, Services, Net	19,028,000	17,739,000	17,839,000	$ 17,800,000
Advertising Expense	$ 1,300,000	$ 1,200,000	$ 1,600,000
Uncertain Income Tax Position Minimum Rate	50.00%
Number of Operating Segments	1
Disclosure on Geographic Areas Long Lived Assets in Entity S Country of Domicile, Percent	98.00%
End-Customers [Member]
Standard Warranty Period	1 year
Minimum [Member]
Finite-Lived Intangible Asset, Useful Life	330 days
Minimum [Member] \| Distributors [Member]
Standard Warranty Period	1 year 60 days
Maximum [Member]
Finite-Lived Intangible Asset, Useful Life	10 years
Maximum [Member] \| Distributors [Member]
Standard Warranty Period	1 year 120 days
Customer Concentration Risk [Member] \| Accounts Receivable [Member]
Concentration Risk, Percentage	12.00%	10.00%
Geographic Concentration Risk [Member] \| Sales Revenue, Net [Member] \| UNITED STATES
Concentration Risk, Percentage	55.00%	52.00%	45.00%
Geographic Concentration Risk [Member] \| Sales Revenue, Net [Member] \| Outside the United States [Member]
Concentration Risk, Percentage	45.00%	48.00%	55.00%

Note 2 - Investment Securities - Cash, Cash Equivalents and Marketable Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Cash and cash equivalents:
Cash	$ 6,672	$ 9,830
Cash equivalents	13,775	10,868
Marketable securities:
Marketable securities	40,299	37,539
Total cash, cash equivalents and marketable securities	54,074	48,407
US Treasury and Government [Member]
Marketable securities:
Marketable securities	8,398	7,779
US Government Agencies Debt Securities [Member]
Marketable securities:
Marketable securities	3,916	12,608
US States and Political Subdivisions Debt Securities [Member]
Marketable securities:
Marketable securities	1,325	4,346
Commercial Paper, Not Included with Cash and Cash Equivalents [Member]
Marketable securities:
Marketable securities	12,299	4,040
Corporate Debt Securities [Member]
Marketable securities:
Marketable securities	14,361	8,766
Money Market Funds [Member]
Cash and cash equivalents:
Cash equivalents	6,053	1,000
Commercial Paper [Member]
Cash and cash equivalents:
Cash equivalents	$ 1,050	$ 38

Note 2 - Investment Securities - Unrealized Gains and Losses Related to Marketable Investments (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Amortizated cost	$ 13,775	$ 10,868	$ 9,803	$ 16,242
Gross unrealized gains	9	7
Gross unrealized losses	(21)	(46)
Fair market value	40,299
Amortizated cost	54,086	48,446
Fair market value	54,074	48,407
US Treasury and Government [Member]
Amortizated cost	8,403	7,780
Gross unrealized gains	4	1
Gross unrealized losses	(9)	(2)
Fair market value	8,398	7,779
US Government Agencies Debt Securities [Member]
Amortizated cost	3,918	12,630
Gross unrealized gains		3
Gross unrealized losses	(2)	(25)
Fair market value	3,916	12,608
US States and Political Subdivisions Debt Securities [Member]
Amortizated cost	1,325	4,344
Gross unrealized gains		2
Gross unrealized losses
Fair market value	1,325	4,346
Commercial Paper, Not Included with Cash and Cash Equivalents [Member]
Amortizated cost	12,299	4,041
Gross unrealized gains	2	1
Gross unrealized losses	(2)	(2)
Fair market value	12,299	4,040
Corporate Debt Securities [Member]
Amortizated cost	14,366	8,783
Gross unrealized gains	3
Gross unrealized losses	(8)	(17)
Fair market value	14,361	8,766
Cash and Cash Equivalents [Member]
Amortizated cost	13,775	10,868
Fair market value	13,775	10,868
Marketable Investments [Member]
Amortizated cost	40,311	37,578
Gross unrealized gains	9	7
Gross unrealized losses	(21)	(46)
Fair market value	$ 40,299	$ 37,539

Note 2 - Investment Securities - Maturities of Available-for-sale Securities (Details) $ in Thousands	Dec. 31, 2016 USD ($)
Due in less than one year (fiscal year 2017)	$ 36,796
Due in 1 to 3 years (fiscal year 2018-2019)	3,503
Total marketable securities	$ 40,299

Note 2 - Investment Securities - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Available-for-sale securities	$ 40,299
Fair Value, Measurements, Recurring [Member]
Available-for-sale securities	40,299	$ 37,539
Total assets at fair value	47,402	38,577
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member]
Available-for-sale securities
Total assets at fair value	6,053	1,000
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 2 [Member]
Available-for-sale securities	40,299	37,539
Total assets at fair value	41,349	37,577
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	6,053	1,000
Money Market Funds [Member] \| Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member]
Cash equivalents	6,053	1,000
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	38
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	38
Commercial Paper [Member] \| Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 3 [Member]
Cash equivalents

Note 3 - Balance Sheet Detail (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Capital Leased Assets, Gross	$ 1,400,000	$ 862,000
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation	492,000	374,000
Impairment of Intangible Assets (Excluding Goodwill)			$ 650,000
Amortization of Intangible Assets	$ 141,000	$ 452,000	$ 773,000

Note 3 - Balance Sheet Detail - Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Raw materials	$ 10,966	$ 7,982
Finished goods	4,011	4,096
Total	$ 14,977	$ 12,078

Note 3 - Balance Sheet Detail - Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Property, plant and equipment, gross	$ 9,060	$ 8,454
Less: Accumulated depreciation	(7,153)	(6,981)
Property and equipment, net	1,907	1,473
Leasehold Improvements [Member]
Property, plant and equipment, gross	652	822
Equipment and Furniture [Member]
Property, plant and equipment, gross	2,973	2,970
Machinery and Equipment [Member]
Property, plant and equipment, gross	$ 5,435	$ 4,662

Note 3 - Balance Sheet Detail - Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Accumulated amortization and impairment amount	$ 4,661	$ 4,520
Net amount	2
Goodwill	1,339	1,339
Goodwill	1,339	1,339
Total	6,002	6,002
Total	1,341	1,482
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	2,508	2,367
Net amount	2	143
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 3 - Balance Sheet Detail - Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Accrued payroll and related expenses	$ 9,036	$ 7,726
Accrued sales tax	2,373	1,935
Warranty liability	2,461	1,819
Other accrued liabilities	3,527	2,354
Total	$ 17,397	$ 13,834

Note 4 - Warranty and Service Contracts - Summary of Warranties (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Balance at beginning of year	$ 1,819	$ 1,167
Add: Accruals for warranties issued during the year	5,375	4,134
Less: Settlements and expirations made during the year	(4,733)	(3,482)
Balance at end of year	$ 2,461	$ 1,819

Note 4 - Warranty and Service Contracts - Deferred Service Contract Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Balance at beginning of year	$ 10,469	$ 12,949
Add: Payments received	12,344	10,378
Less: Revenue recognized	(13,382)	(12,858)
Balance at end of year	$ 9,431	$ 10,469

Note 5 - Stockholders' Equity, Stock Plans and Stock-based Compensation Expense (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	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	$ 3,600,000	$ 5,100,000	$ 824,000
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options	767,277	1,561,916
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price	$ 8.92	$ 9.05
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options	$ 10,111,000	$ 11,079,000	$ 3,758,000
Shares Paid for Tax Withholding for Share Based Compensation	56,157	68,101	15,769
Adjustments Related to Tax Withholding for Share-based Compensation	$ 619,000	$ 1,000,000	$ 156,000
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets	49,000
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options	0	$ 0	$ 0
New Accounting Pronouncement, Early Adoption, Effect [Member]
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets	$ 49,000
Minimum [Member]
Share Based Compensation, Forfeiture Rate	0.00%
Maximum [Member]
Share Based Compensation, Forfeiture Rate	17.00%
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period				3 years	3 years
Option Granted Contractual Term				7 years	7 years
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 3,300,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	1 year 240 days
Restricted Stock Units (RSUs) [Member]
Share Price	$ 17.35	$ 12.79	$ 10.68	$ 10.18
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value	$ 2,200,000	$ 2,600,000	$ 699,000
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	1 year	255 days	1 year
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted	204,976	74,667	105,000
Stock Purchase Plan [Member]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 110,000
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
Two Thousand Four Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	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	45,350	21,020	38,688
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	$ 17.35	$ 12.79	$ 10.68	$ 10.18
Two Thousand Four Equity Incentive Plan [Member] \| Restricted Stock Units (RSUs) [Member]
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	229,865	107,417	211,250
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	79,922	55,872	52,759
Common Stock, Capital Shares Reserved for Future Issuance	770,063
Modified Stock Buyback Program [Member]
Increase in Authorized Amount Under Stock Repurchase Plan			$ 10,000,000
Stock Repurchase Program, Remaining Authorized Repurchase Amount	$ 5,100,000						$ 10,000,000	$ 40,000,000	$ 10,000,000
Stock Repurchased During Period, Shares	455,311	2,818,038
Stock Repurchased During Period, Value		$ 40,000,000
Treasury Stock, Value, Acquired, Cost Method	$ 4,900,000
Modified Stock Buyback Program [Member] \| Subsequent Event [Member]
Stock Repurchase Program, Remaining Authorized Repurchase Amount						$ 5,000,000

Note 5 - Stockholders' Equity, Stock Plans and Stock-based Compensation Expense - Activity Under the 2004 Equiy Incentive Plan (Details) - USD ($)
$ / shares in Units, $ in Millions

12 Months Ended

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Balances, shares available for grant (in shares)

1,263,425

129,760

709,483

Balances, stock options outstanding (in shares)

2,148,797

3,462,567

3,792,162

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

$ 9.31

$ 9.39

$ 9.42

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

3 years 255 days

3 years 146 days

4 years 73 days

Balances, aggregate intrinsic value

^[1]

$ 8.7

$ 7.9

$ 5.7

$ 5.1

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

1,300,000

^[2]

200,000

^[3]

Options granted, shares available for grant (in shares)

(162,000)

(129,000)

(486,300)

Options granted, stock options outstanding (in shares)

162,000

129,000

486,300

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

$ 11.55

$ 13.26

$ 9.78

Options exercised, stock options outstanding (in shares)

(1,051,138)

(1,141,904)

(396,970)

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

$ 8.89

$ 9.20

$ 8.33

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

143,187

300,866

418,925

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

(143,187)

(300,866)

(418,925)

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

$ 12.93

$ 12.37

$ 11.15

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

(1,018,005)

(430,580)

(764,394)

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

495,050

92,379

52,046

Balances, shares available for grant (in shares)

721,657

1,263,425

129,760

709,483

Balances, stock options outstanding (in shares)

1,116,472

2,148,797

3,462,567

3,792,162

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

$ 9.56

$ 9.31

$ 9.39

$ 9.42

Exercisable, stock options outstanding (in shares)

767,277

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

$ 8.92

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

3 years

Exercisable, aggregate intrinsic value

^[1]

$ 6.5

Vested and expected to vest, net of estimated forfeitures, as of December 31, 2016 (in shares)

1,069,923

Vested and expected to vest, net of estimated forfeitures, as of December 31, 2016 (in dollars per share)

$ 9.47

Vested and expected to vest, net of estimated forfeitures, as of December 31, 2016 (Year)

3 years 219 days

Vested and expected to vest, net of estimated forfeitures, as of December 31, 2016

^[1]

$ 8.4

[1]	Based on the closing stock price of the Company's stock of $17.35 on December 30, 2016, $12.79 on December 31, 2015, $10.68 on December 31 2014 and $10.18 on December 30, 2013.
[2]	Approved by stockholders in 2015.
[3]	Approved by Board of Directors in 2014, approved by stockholders in 2015.

Note 5 - Stockholders' Equity, Stock Plans and Stock-based Compensation Expense - Options Outstanding and Exercisable Price Ranges (Details) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Range of exercise prices, upper limit (in dollars per share)	$ 15.32
Options outstanding, number outstanding (in shares)	1,116,472
Options outstanding, weighted-average remaining contractual life (Year)	3 years 270 days
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options	767,277	1,561,916
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price	$ 8.92	$ 9.05
Range of exercise prices, lower limit (in dollars per share)	6.88
Exercise Price Range 1 [Member]
Range of exercise prices, upper limit (in dollars per share)
Options outstanding, number outstanding (in shares)	158,643
Options outstanding, weighted-average remaining contractual life (Year)	2 years 208 days
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options	158,643
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price	$ 6.88
Exercise Price Range 2 [Member]
Range of exercise prices, upper limit (in dollars per share)	$ 8.52
Options outstanding, number outstanding (in shares)	32,750
Options outstanding, weighted-average remaining contractual life (Year)	1 year 310 days
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options	32,750
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price	$ 7.71
Range of exercise prices, lower limit (in dollars per share)	7.15
Exercise Price Range 3 [Member]
Range of exercise prices, upper limit (in dollars per share)
Options outstanding, number outstanding (in shares)	127,995
Options outstanding, weighted-average remaining contractual life (Year)	1 year 146 days
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options	127,995
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price	$ 8.72
Exercise Price Range 4 [Member]
Range of exercise prices, upper limit (in dollars per share)
Options outstanding, number outstanding (in shares)	213,741
Options outstanding, weighted-average remaining contractual life (Year)	3 years 167 days
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options	166,370
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price	$ 8.80
Exercise Price Range 5 [Member]
Range of exercise prices, upper limit (in dollars per share)	$ 9.65
Options outstanding, number outstanding (in shares)	144,460
Options outstanding, weighted-average remaining contractual life (Year)	4 years 69 days
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options	100,019
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price	$ 9.31
Range of exercise prices, lower limit (in dollars per share)	8.91
Exercise Price Range 6 [Member]
Range of exercise prices, upper limit (in dollars per share)	$ 10.03
Options outstanding, number outstanding (in shares)	115,000
Options outstanding, weighted-average remaining contractual life (Year)	4 years 240 days
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options	67,605
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price	$ 9.99
Range of exercise prices, lower limit (in dollars per share)	9.97
Exercise Price Range 7 [Member]
Range of exercise prices, upper limit (in dollars per share)	$ 10.86
Options outstanding, number outstanding (in shares)	114,133
Options outstanding, weighted-average remaining contractual life (Year)	3 years 317 days
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options	55,394
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price	$ 10.30
Range of exercise prices, lower limit (in dollars per share)	10.24
Exercise Price Range 8 [Member]
Range of exercise prices, upper limit (in dollars per share)	$ 11.98
Options outstanding, number outstanding (in shares)	116,250
Options outstanding, weighted-average remaining contractual life (Year)	5 years 240 days
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options	24,792
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price	$ 11.18
Range of exercise prices, lower limit (in dollars per share)	10.90
Exercise Price Range 9 [Member]
Range of exercise prices, upper limit (in dollars per share)	$ 14.04
Options outstanding, number outstanding (in shares)	88,500
Options outstanding, weighted-average remaining contractual life (Year)	5 years 317 days
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options	31,938
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price	$ 13.67
Range of exercise prices, lower limit (in dollars per share)	13.40
Exercise Price Range 10 [Member]
Range of exercise prices, upper limit (in dollars per share)
Options outstanding, number outstanding (in shares)	5,000
Options outstanding, weighted-average remaining contractual life (Year)	5 years 204 days
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options	1,771
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price	$ 15.32

Note 5 - Stockholders' Equity, Stock Plans and Stock-based Compensation Expense - Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs) [Member] - USD ($)

12 Months Ended

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Outstanding, number of shares (in shares)

371,630

434,321

179,465

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

$ 12.39

$ 9.31

$ 8.34

Outstanding, aggregate intrinsic value

^[1]

$ 7,726

$ 4,753

$ 4,639

$ 1,827

Granted, number of shares (in shares)

480,191

203,104

360,563

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

$ 10.80

$ 14.81

$ 9.72

Vested, number of shares (in shares)

^[2]

(172,990)

(222,220)

(81,157)

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

^[2]

$ 12.56

$ 11.79

$ 8.62

Vested, aggregate fair value

^[2],[4]

$ 1,906,000

^[3]

$ 3,285,000

^[5]

$ 777,000

^[6]

Forfeited, number of shares (in shares)

(233,514)

(43,575)

(24,550)

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

$ 11.36

$ 9.09

$ 8.14

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

[1]	Based on the closing stock price of the Company's stock of $17.35 on December 31, 2016, $12.79 on December 31, 2015, $10.68 on December 30, 2014 and $10.18 on December 31, 2013.
[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 $2.2 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 $2.6 million.
[6]	On the grant date, the fair value for these vested awards was $699,000.

Note 5 - Stockholders' Equity, Stock Plans and Stock-based Compensation Expense - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Allocated share-based compensation expense	$ 3,713	$ 4,084	$ 3,299
Employee Stock Option [Member]
Allocated share-based compensation expense	989	1,438	1,811
Restricted Stock Units (RSUs) [Member]
Allocated share-based compensation expense	1,508	1,297	875
Performance Shares [Member]
Allocated share-based compensation expense	967	1,167	455
ESPP [Member]
Allocated share-based compensation expense	$ 249	$ 182	$ 158

Note 5 - Stockholders' Equity, Stock Plans and Stock-based Compensation Expense - Stock-based Compensation Expense by Department (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Allocated share-based compensation expense	$ 3,713	$ 4,084	$ 3,299
Cost of Sales [Member]
Allocated share-based compensation expense	341	447	560
Selling and Marketing Expense [Member]
Allocated share-based compensation expense	1,179	1,054	641
Research and Development Expense [Member]
Allocated share-based compensation expense	596	662	581
General and Administrative Expense [Member]
Allocated share-based compensation expense	$ 1,597	$ 1,921	$ 1,517

Note 5 - 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, 2016

Dec. 31, 2015

Dec. 31, 2014

Employee Stock Option [Member]

Expected term (in years) (Year)

^[1]

3 years 302 days

3 years 87 days

4 years 65 days

Risk-free interest rate

^[2]

1.09%

0.90%

1.31%

Volatility

^[3]

40.00%

30.00%

41.00%

Dividend yield

^[4]

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

$ 3.72

$ 4.78

$ 3.36

Stock Purchase Plan [Member]

Expected term (in years) (Year)

^[1]

182 days

Risk-free interest rate

^[2]

0.46%

0.17%

0.06%

Volatility

^[3]

39.00%

36.00%

37.00%

Dividend yield

^[4]

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

$ 3.22

$ 3.51

$ 2.65

[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.
[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 6 - Income Taxes (Details Textual) - USD ($)	3 Months Ended	12 Months Ended
Note 6 - Income Taxes (Details Textual) - USD ($)	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount		$ 4,100,000	$ 1,600,000	$ 3,300,000
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets		49,000
Deferred Tax Assets, Operating Loss Carryforwards		15,487,000	14,231,000
Deferred Tax Assets, Tax Credit Carryforwards		9,006,000	4,477,000
Undistributed Earnings of Foreign Subsidiaries		3,100,000	2,800,000
Unrecognized Tax Benefits that Would Impact Effective Tax Rate		82,000	78,000
Unrecognized Tax Benefits, Interest on Income Taxes Accrued		49,000	45,000
Unrecognized Tax Benefits, Income Tax Penalties Accrued		0	$ 0
New Accounting Pronouncement, Early Adoption, Effect [Member]
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets		49,000
Deferred Tax Assets, Operating Loss Carryforwards	$ 1,200,000
Deferred Tax Assets, Tax Credit Carryforwards	3,900,000
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount	$ 5,200,000
Domestic Tax Authority [Member]
Operating Loss Carryforwards		42,000,000
Deferred Tax Assets, Tax Credit Carryforwards, Research		$ 5,000,000
Domestic Tax Authority [Member] \| Earliest Tax Year [Member]
Operating Loss Carryforwards Expiration Date 1		2029
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 Date 1		2035
Domestic Tax Authority [Member] \| Latest Tax Year [Member] \| Research Tax Credit Carryforward [Member]
Tax Credit Carryforward Expiration Year		2035
State and Local Jurisdiction [Member]
Operating Loss Carryforwards		$ 21,800,000
Deferred Tax Assets, Tax Credit Carryforwards, Research		6,200,000
Research and Development Tax Credits Expiring in 2020		$ 268,000
State and Local Jurisdiction [Member] \| Earliest Tax Year [Member]
Operating Loss Carryforwards Expiration Date 1		2029
State and Local Jurisdiction [Member] \| Earliest Tax Year [Member] \| Research Tax Credit Carryforward [Member]
Tax Credit Carryforward Expiration Year		2020
State and Local Jurisdiction [Member] \| Latest Tax Year [Member]
Operating Loss Carryforwards Expiration Date 1		2035
State and Local Jurisdiction [Member] \| Latest Tax Year [Member] \| Research Tax Credit Carryforward [Member]
Tax Credit Carryforward Expiration Year		2021

Note 6 - Income Taxes - Income (Loss) Before Provision for Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
U.S.									$ 2,207	$ (4,588)	$ (10,592)
Foreign									513	360	199
Income (loss) before income taxes	$ 4,241	$ 1,705	$ (1,199)	$ (2,027)	$ 2,102	$ (900)	$ (1,836)	$ (3,594)	$ 2,720	$ (4,228)	$ (10,393)

Note 6 - Income Taxes - Income Tax Provision (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Current:
Federal										$ (7)	$ (7)
State									16	23	19
Foreign									131	218	110
Total Current									147	234	122
Deferred:
Federal									(24)	33	32
State									(2)
Foreign									22	(55)	65
Total Deferred									(4)	(22)	97
Tax provision	$ 28	$ 61	$ 30	$ 24	$ 52	$ 57	$ 53	$ 50	$ 143	$ 212	$ 219

Note 6 - Income Taxes - Deferred Tax Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Deferred Tax Assets, Operating Loss Carryforwards	$ 15,487	$ 14,231
Stock-based compensation	1,486	2,462
Other accruals and reserves	2,160	4,679
Deferred Tax Assets, Tax Credit Carryforwards	9,006	4,477
Foreign	377	350
Accrued warranty	890	657
Depreciation and amortization	2,627	1,105
Other	95	5
Deferred tax asset before valuation allowance	32,128	27,966
Valuation allowance	(31,751)	(27,616)
Deferred tax asset after valuation allowance	377	350
Deferred tax liability on goodwill	(85)	(103)
Net deferred tax asset	$ 292	$ 247

Note 6 - Income Taxes - Deferred Tax Asset Balance (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Deferred tax asset	$ 377	$ 350
Income tax liability	(85)	(103)
Net deferred tax asset after valuation allowance	$ 292	$ 247

Note 6 - Income Taxes - Reconciliation of Effective Tax Rate (Details)

12 Months Ended

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

U.S. federal statutory income tax rate

34.00%

^[1]

34.00%

^[1]

State tax rate, net of federal benefit

(14.56%)

1.94%

^[1]

1.62%

^[1]

Benefit for research and development credit

(9.25%)

Benefit for research and development nondeductible expense

^[1]

15.92%

7.24%

Stock-based compensation

14.36%

(19.19%)

^[1]

(5.56%)

^[1]

Foreign rate differential

(0.16%)

(1.47%)

^[1]

(1.04%)

^[1]

True ups

(0.67%)

^[1]

Other

6.08%

(4.58%)

^[1]

(1.78%)

^[1]

Valuation allowance

(24.57%)

(31.63%)

^[1]

(36.58%)

^[1]

Effective tax rate

5.23%

(5.01%)

^[1]

(2.10%)

^[1]

[1]	Certain items have changed for classification purposes.

Note 6 - Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Balance at beginning of year	$ 651	$ 597	$ 535
Increases related to prior year tax positions
Increases related to current year tax positions	56	54	62
Decreases related to lapsing of statute of limitations
Balance at end of year	$ 707	$ 651	$ 597

Note 7 - Net Income (Loss) Per Share - Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Antidilutive Securities (in shares)	244	2,988	3,825
Employee Stock Option [Member]
Antidilutive Securities (in shares)	220	2,575	3,489
Restricted Stock Units (RSUs) [Member]
Antidilutive Securities (in shares)	24	296	213
ESPP [Member]
Antidilutive Securities (in shares)		93	86
Performance Shares [Member]
Antidilutive Securities (in shares)		24	37

Note 9 - Segment Information and Revenue by Geograpy and Products - Revenue by Geographic Region (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Net revenue	$ 37,875	$ 30,281	$ 27,477	$ 22,423	$ 30,042	$ 23,085	$ 22,563	$ 19,071	$ 118,056	$ 94,761	$ 78,138
Product [Member]
Net revenue									92,721	71,223	53,106
Hand Piece Refills [Member]
Net revenue									2,498	2,910	3,714
Skincare [Member]
Net revenue									3,809	2,889	3,479
Total Product Revenue [Member]
Net revenue									99,028	77,022	60,299
Service [Member]
Net revenue									19,028	17,739	17,839
UNITED STATES
Net revenue									65,513	48,916	35,494
JAPAN
Net revenue									14,727	11,504	13,328
Asia, Excluding Japan [Member]
Net revenue									13,445	15,596	11,023
Europe [Member]
Net revenue									7,539	7,728	7,792
Rest of World [Member]
Net revenue									$ 16,832	$ 11,017	$ 10,501

Note 10 - Commitments and Contingencies - Minimum Lease and Other Leased Assets under Long-term Non-cancellable Operating Leases (Details) $ in Thousands	Dec. 31, 2016 USD ($)
2017	$ 1,912
2018	189
2019	35
2020	5
Future minimum rental payments	$ 2,141

Note 10 - Commitments and Contingencies - Minimum Lease Payments for Leased Vehicles under Long-term Non-cancellable Capital Leases (Details) $ in Thousands	Dec. 31, 2016 USD ($)
2017	$ 367
2018	354
2019	266
2020	6
Future minimum lease payments	$ 993

Note 11 - Related Parties (Details Textual) - USD ($)	12 Months Ended
Note 11 - Related Parties (Details Textual) - USD ($)	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	480,191	203,104	360,563
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	$ 182,100

Note 12 - Subsequent Events (Details Textual) - Modified Stock Buyback Program [Member] - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Feb. 13, 2017	Feb. 08, 2016	Feb. 18, 2015	Feb. 17, 2015
Stock Repurchase Program, Remaining Authorized Repurchase Amount	$ 5,100,000			$ 10,000,000	$ 40,000,000	$ 10,000,000
Stock Repurchased During Period, Shares	455,311	2,818,038
Treasury Stock, Value, Acquired, Cost Method	$ 4,900,000
Subsequent Event [Member]
Stock Repurchase Program, Remaining Authorized Repurchase Amount			$ 5,000,000

Note 13 - 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, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Net revenue	$ 37,875	$ 30,281	$ 27,477	$ 22,423	$ 30,042	$ 23,085	$ 22,563	$ 19,071	$ 118,056	$ 94,761	$ 78,138
Cost of revenue	15,962	12,538	11,472	9,949	12,145	9,594	9,687	9,052	49,921	40,478	34,765
Gross profit	21,913	17,743	16,005	12,474	17,897	13,491	12,876	10,019	68,135	54,283	43,373
Sales and marketing	11,561	10,574	10,712	8,716	9,899	8,790	9,066	8,187	41,563	35,942	32,246
Research and development	2,897	2,914	2,712	2,709	2,812	2,748	2,728	2,445	11,232	10,733	10,543
General and administrative	3,010	2,716	3,997	3,220	3,189	2,937	3,014	2,989	12,943	12,129	11,203
Total operating expenses	17,468	16,204	17,421	14,645	15,900	14,475	14,808	13,621	65,738	58,804	53,992
Income (loss) from operations	4,445	1,539	(1,416)	(2,171)	1,997	(984)	(1,932)	(3,602)	2,397	(4,521)	(10,619)
Interest and other income, net	(204)	166	217	144	105	84	96	8	323	293	226
Income (loss) before income taxes	4,241	1,705	(1,199)	(2,027)	2,102	(900)	(1,836)	(3,594)	2,720	(4,228)	(10,393)
Income tax provision	28	61	30	24	52	57	53	50	143	212	219
Net income (loss)	$ 4,213	$ 1,644	$ (1,229)	$ (2,051)	$ 2,050	$ (957)	$ (1,889)	$ (3,644)	$ 2,577	$ (4,440)	$ (10,612)
Net income (loss) per share—basic (in dollars per share)	$ 0.31	$ 0.12	$ (0.09)	$ (0.16)	$ 0.16	$ (0.07)	$ (0.13)	$ (0.25)	$ 0.19	$ (0.32)	$ (0.74)
Net income (loss) per share—diluted (in dollars per share)	$ 0.30	$ 0.12	$ (0.09)	$ (0.16)	$ 0.15	$ (0.07)	$ (0.13)	$ (0.25)	$ 0.19	$ (0.32)	$ (0.74)
Basic (in shares)	13,591	13,163	13,131	13,010	12,978	13,827	14,441	14,611	13,225	13,960	14,254
Diluted (in shares)	14,201	13,544	13,131	13,010	13,591	13,827	14,441	14,611	13,753	13,960	14,254

Schedule II - Valuation and Qualifying Accounts - Summary of the Deferred Tax Assets Valuation Allowance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Valuation Allowance of Deferred Tax Assets [Member]
Year ended December 31, 2016	$ 27,616	$ 26,046	$ 22,762
Year ended December 31, 2016	6,755	3,327	3,780
Year ended December 31, 2016	2,620	1,757	496
Year ended December 31, 2016	31,751	27,616	26,046
Allowance for Doubtful Accounts, Current [Member]
Year ended December 31, 2016	4		19
Year ended December 31, 2016	21	4	4
Year ended December 31, 2016	4		23
Year ended December 31, 2016	$ 21	$ 4

Note 4 - Warranty and Service Contracts (Details Textual) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Deferred Revenue Costs Incurred	$ 6.7	$ 6.2	$ 6.6

Note 8 - Defined Contribution Plan (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Defined Contribution Plan, Employer Discretionary Contribution Amount	$ 262,000	$ 244,000	$ 211,000
Maximum [Member]
Defined Contribution Plan Maximum Percentage of Employee Voluntary Contribution	100.00%

Note 1 - Summary of Significant Accounting Policies - Useful Lives of Property, Plant and Equipment (Details)	12 Months Ended
	Dec. 31, 2016
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 2 - Investment Securities (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	$ 0	$ 0
Maturity of Money Market Fund	3 years