Document And Entity Information - shares	9 Months Ended
Document And Entity Information - shares	Sep. 30, 2017	Oct. 31, 2017
Document Information [Line Items]
Entity Registrant Name	CUTERA INC
Entity Central Index Key	0001162461
Trading Symbol	cutr
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		13,854,966
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 14,784	$ 13,775
Marketable investments	35,692	40,299
Accounts receivable, net	19,604	16,547
Inventories	23,728	14,977
Other current assets and prepaid expenses	2,894	2,251
Total current assets	96,702	87,849
Property and equipment, net	1,842	1,907
Deferred tax asset	384	377
Intangibles, net		2
Goodwill	1,339	1,339
Other long-term assets	381	380
Total assets	100,648	91,854
Current liabilities:
Accounts payable	5,805	2,598
Accrued liabilities	22,203	17,397
Deferred revenue	8,801	8,394
Total current liabilities	36,809	28,389
Deferred revenue, net of current portion	1,950	1,705
Income tax liability	171	168
Other long-term liabilities	505	582
Total liabilities	39,435	30,844
Commitments and Contingencies (Note 11)
Stockholders’ equity:
Convertible preferred stock, $0.001 par value; authorized: 5,000,000 shares; none issued and outstanding
Common stock, $0.001 par value; authorized: 50,000,000 shares; issued and outstanding: 13,906,439 and 13,773,389 shares at September 30, 2017 and December 31, 2016, respectively	14	14
Additional paid-in capital	81,195	88,114
Accumulated deficit	(19,933)	(27,046)
Accumulated other comprehensive loss	(63)	(72)
Total stockholders’ equity	61,213	61,010
Total liabilities and stockholders’ equity	$ 100,648	$ 91,854

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
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)	13,906,439	13,773,389
Common stock, outstanding (in shares)	13,906,439	13,773,389

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Net revenue:
Products	$ 33,486,000	$ 25,493,000	$ 89,688,000	$ 65,903,000
Service	4,687,000	4,788,000	14,173,000	14,278,000
Total net revenue	38,173,000	30,281,000	103,861,000	80,181,000
Cost of revenue:
Products	13,859,000	10,160,000	38,843,000	26,804,000
Service	2,104,000	2,378,000	6,241,000	7,155,000
Total cost of revenue	15,963,000	12,538,000	45,084,000	33,959,000
Gross profit	22,210,000	17,743,000	58,777,000	46,222,000
Operating expenses:
Sales and marketing	13,148,000	10,574,000	36,708,000	30,002,000
Research and development	3,467,000	2,914,000	9,393,000	8,335,000
General and administrative	3,379,000	2,716,000	10,143,000	9,933,000
Lease termination income	(4,000,000)		(4,000,000)
Total operating expenses	15,994,000	16,204,000	52,244,000	48,270,000
Income (loss) from operations	6,216,000	1,539,000	6,533,000	(2,048,000)
Interest and other income, net	197,000	166,000	746,000	527,000
Income (loss) before income taxes	6,413,000	1,705,000	7,279,000	(1,521,000)
Provision for income taxes	225,000	61,000	166,000	115,000
Net income (loss)	$ 6,188,000	$ 1,644,000	$ 7,113,000	$ (1,636,000)
Net income (loss) per share:
Basic (in dollars per share)	$ 0.44	$ 0.12	$ 0.51	$ (0.12)
Diluted (in dollars per share)	$ 0.42	$ 0.12	$ 0.48	$ (0.12)
Weighted-average number of shares used in per share calculations:
Basic (in shares)	13,973	13,163	13,917	13,102
Diluted (in shares)	14,767	13,544	14,733	13,102

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Net income (loss)	$ 6,188	$ 1,644	$ 7,113	$ (1,636)
Available-for-sale investments
Net change in unrealized gains (losses) on available-for-sale investments	5	(24)	13	56
Less: Reclassification adjustment for gains on investments recognized during the period		(1)	(4)	(1)
Net change in unrealized gain and losses on available-for-sale investments	5	(25)	9	55
Tax provision (benefit)		(9)		20
Other comprehensive income (loss), net of tax	5	(16)	9	35
Comprehensive income (loss)	$ 6,193	$ 1,628	$ 7,122	$ (1,601)

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net income (loss)	$ 7,113	$ (1,636)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Stock-based compensation	3,623	2,652
Depreciation and amortization	750	733
Other	(67)	(45)
Changes in assets and liabilities:
Accounts receivable	(3,048)	(61)
Inventories	(8,751)	(4,400)
Other current assets and prepaid expenses	(633)	(690)
Other long-term assets	(1)	(60)
Accounts payable	3,207	1,324
Accrued liabilities	4,757	886
Other long-term liabilities		(247)
Deferred revenue	652	(1,187)
Income tax liability	3	(18)
Net cash provided by (used) in operating activities	7,605	(2,749)
Cash flows from investing activities:
Acquisition of property, equipment and software	(443)	(311)
Disposal of property and equipment	53	17
Proceeds from sales of marketable investments	9,154	6,153
Proceeds from maturities of marketable investments	39,612	20,135
Purchase of marketable investments	(44,156)	(23,944)
Net cash provided by investing activities	4,220	2,050
Cash flows from financing activities:
Repurchase of common stock	(13,776)	(4,873)
Proceeds from exercise of stock options and employee stock purchase plan	4,566	6,798
Taxes paid related to net share settlement of equity awards	(1,332)	(601)
Payments on capital lease obligations	(274)	(218)
Net cash used in financing activities	(10,816)	1,106
Net increase in cash and cash equivalents	1,009	407
Cash and cash equivalents at beginning of period	13,775	10,868
Cash and cash equivalents at end of period	14,784	11,275
Supplemental disclosure of non-cash items:
Assets acquired under capital lease	$ 257	$ 580

Note 1 - Summary of Significant Accounting Policies	9 Months Ended
Note 1 - Summary of Significant Accounting Policies	Sep. 30, 2017
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. (“ 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: enlighten ® , 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 (i) systems, system upgrades and hand pieces (classified as “Systems” revenue); (ii) hand piece refills applicable to Titan ® and truSculpt (classified as “Hand Piece Refills”); and (iii) the distribution of third party manufactured skincare products (classified as "Skincare” revenue); and collectively classified as “Products” revenue. In addition to Products revenue, the Company generates revenue from the sale of post-warranty service contracts, parts, detachable hand piece replacements (except for Titan and truSculpt ) 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, Switzerland and the United Kingdom. These subsidiaries market, sell and service the Company ’s products outside of the United States. The Condensed Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All inter-company accounts, transactions and balances have been eliminated. Unaudited Interim Financial Information The interim financial information filed included in this report is unaudited. The Condensed Consolidated Financial Statements included in this report reflect all adjustments (consisting only of normal recurring adjustments) that the Company considers necessary for the fair presentation of the results of operations for the interim periods covered and of the financial condition of the Company at the date of the interim balance sheet. The December 31, 2016 Condensed Consolidated Balance Sheet was derived from audited financial statements, but does not include all disclosures required by generally accepted accounting principles in the United States of America (“GAAP”). The results for interim periods are not necessarily indicative of the results for the entire year or any other interim period. The Condensed Consolidated Financial Statements should be read in conjunction with the Company ’s previously filed audited financial statements and the notes thereto included in the Company’s annual report on Form 10 -K for the year ended December 31, 2016 filed with the Securities and Exchange Commission (the “SEC”) on March 15, 2017. Use of Estimates The preparation of interim Condensed Consolidated Financial Statements in conformity with GAAP requires the Company ’s management to make estimates and assumptions that affect the amounts reported and disclosed in the Condensed Consolidated Financial Statements and the accompanying notes. These estimates are based on management's best knowledge of current events and actions we may undertake in the future. Actual results could differ materially from those estimates. On an ongoing basis, the Company evaluates these estimates, including those related to revenue elements, warranty obligations, sales commissions, accounts receivable and sales allowances, provision for excess and obsolete inventories, fair values of marketable investments, useful lives of property and equipment, fair values of performance stock units and options to purchase the Company’s stock, recoverability of deferred tax assets, legal matters and claims, and effective income tax rates, among others. Management bases these 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. Recent Accounting Pronouncements Not Yet Adopted Revenue Recognition In May 2014, the Financial Accounting Standards Board ("FASB”), jointly with the International Accounting Standards Board, issued Accounting Standards Update (“ASU”) No. 2014 - 09, Revenue from Contracts with Customers. This new standard will replace most of the existing revenue recognition guidance in GAAP when it becomes effective and permits the use of either the retrospective or the modified retrospective method (or cumulative effect transition method). The standard's core principle is that a reporting entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In applying this new guidance to contracts within its scope, an entity will: ( 1 ) identify the contract(s) with a customer, ( 2 ) identify the performance obligation in the contract, ( 3 ) determine the transaction price, ( 4 ) allocate the transaction price to the performance obligations in the contract, and ( 5 ) recognize revenue when (or as) the entity satisfies a performance obligation. Additionally, this new guidance would require significantly expanded disclosures about revenue. The new standard is effective for annual reporting periods (including interim reporting periods within those annual periods) beginning after December 15, 2017. Entities have the option of using either a full retrospective or a modified retrospective approach to adopt this new standard. While the Company has not completed its evaluation, the Company currently plans to adopt this accounting standard in the first quarter of fiscal year 2018 using the modified retrospective method. Based on the analysis performed through the third quarter of 2017, t he Company believes that the timing and measurement of revenue recognition under its contracts with customers for its Product and Service revenue will not change significantly. However, the basis of revenue recognition will change to one based on the transfer of control of products and services. Also based on the analysis performed, the Company expects that incremental contract acquisition costs of obtaining revenue generating contracts, such as sales commissions paid in connection with system sales with multi-year post-warranty service contracts, would be capitalized and amortized over the customer relationship period . Under the current guidance, the Company expenses such costs when incurred. The Company is in the process of calculating the adjustment that would be required for capitalizing the sales commissions to accumulated deficit and completing the analysis and documentation required for the implementation of ASC 606 upon adoption of the standard on January 1, 2018. The new revenue standard is principle-based and interpretation of those principles may vary from company to company based on their unique circumstances. It is possible that interpretation, industry practice, and guidance may evolve as companies and the accounting profession work to implement this new standard. As the Company completes its evaluation of this new standard, new information may arise that could change the Company’s current understanding of the impact to revenue and expense recognized. Additionally, the Company will continue to monitor industry activities and any additional guidance provided by regulators, standards setters, or the accounting profession and adjust the Company’s assessment and implementation plans accordingly. The new standard requires comprehensive disclosures of quantitative and qualitative information that enables users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company is in the process of preparing the expanded disclosure required under ASC 606. Accounting for Leases In February 2016, the FASB issued ASU No. 2016 - 02, Leases (Topic 842 ), which amends the existing accounting standards for leases. The new standard requires lessees to record a right-of-use asset and a corresponding lease liability on the balance sheet (with the exception of short-term leases). The new standard also requires expanded disclosures regarding leasing arrangements. The new standard becomes effective for the Company in the first quarter of fiscal year 2019 and early adoption is permitted. The new standard is required to be adopted using the modified retrospective approach and requires application of the new standard at the beginning of the earliest comparative period presented. The Company generally does not finance purchases of equipment or other capital, but does lease some of its facilities. Several of the Company ’s customers finance purchases of its system products through third party lease companies and not directly with the Company. The Company does not believe that the new standard will change customer buying patterns or behaviors for its products. T he Company expects that upon adoption, right-of-use assets and lease liabilities will be recognized in the balance sheet in amounts that will be material. Accounting for Income Taxes In October 2016, the FASB issued ASU No. 2016 - 16, Income Taxes (Topic 740 ): Intra-Entity Transfer of Assets Other than Inventory, which requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. This ASU will be effective for the Company in the first quarter of 2018. This ASU is required to be adopted using the modified retrospective approach, with a cumulative catch-up adjustment to retained earnings in the period of adoption. The Company does not believe that adopting this ASU will have a material impact on the financial Statements. Adopted Accounting Pronouncement Beginning fiscal year 2017, the Company adopted ASU No. 2016 - 09, Improvements to Employee Share-based Payment Accounting, which changes among other things, how the tax effects of share-based awards are recognized. ASU No. 2016 - 09 requires excess tax benefits and tax deficiencies to be recognized in the provision for income taxes as discrete items in the period when the awards vest or are settled, whereas previously such income tax effects were generally recorded as part of additional paid-in capital. The provision for income taxes for the three and nine months ended September 30, 2017, included excess tax benefits of $50,000 and $160,000, respectively. The recognized excess tax benefits resulted from share-based compensation awards primarily associated with employee equity plans that were vested or settled in the three and nine months ended September 30, 2017. This ASU also eliminates the requirement to reclassify cash flows related to excess tax benefits from operating activities to financing activities on the consolidated statements of cash flows. The Company also excluded the related tax benefits when applying the treasury stock method for computing diluted shares outstanding on a prospective basis as required by this ASU. In addition, the Company elected to continue its current practice of estimating expected forfeitures. The amount of excess tax benefits and deficiencies recognized in the provision for income taxes will fluctuate from period to period based on the price of the Company’s stock, the volume of share-based instruments settled or vested, and the value assigned to share-based instruments under GAAP. Significant Accounting Policies There have been no additional new or material changes to the significant accounting policies discussed in the Company’s Annual Report on Form 10 -K for the fiscal year ended December 31, 2016, that are of significance or potential significance to the Company.

Note 2 - Cash, Cash Equivalents and Marketable Investments

9 Months Ended

Sep. 30, 2017

Notes to Financial Statements

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

Note

Cash, Cash Equivalents and Marketable Investments

The Company invests its cash primarily in money market funds, commercial paper, corporate notes and bonds, municipal bonds, and debt securities issued by the U.S. government and its agencies. The Company considers all highly liquid investments, with an original maturity of

three

months or less at the time of purchase, to be cash equivalents. Investments with maturities of greater than

three

months at the time of purchase are accounted for as “available-for-sale,” are carried at fair value with unrealized gains and losses reported as a component of stockholders

’ equity, are held for use in current operations and are classified in current assets as “marketable investments.”

The following tables summarize the components, and the unrealized gains and losses position, related to the Company

’s cash, cash equivalents and marketable investments (in thousands):

September 30, 2017	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Market Value
Cash and cash equivalents:
Cash	$	6,703	$	—	$	—		$	6,703
Money market funds		1,636		—		—			1,636
Commercial paper		6,445		—		—			6,445
Total cash and cash equivalents		14,784		—		—			14,784

Marketable investments:
U.S. government notes		5,133		—		(4	)		5,129
U.S. government agencies		—		—		—			—
Municipal securities		201		—		—			201
Commercial paper		15,942		1		(1	)		15,942
Corporate debt securities		14,419		9		(8	)		14,420
Total marketable investments		35,695		10		(13	)		35,692

Total cash, cash equivalents and marketable investments	$	50,479	$	10	$	(13	)	$	50,476

December 31, 2016	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Market Value
Cash and cash equivalents:
Cash	$	6,672	$	—	$	—		$	6,672
Money market funds		6,053		—		—			6,053
Commercial paper		1,050		—		—			1,050
Total 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 investments		40,311		9		(21	)		40,299

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

As of

September 30, 2017

and

December 31, 2016,

total gross unrealized losses were

$13,000

and

$21,000,

respectively, and were related to interest rate changes on available-for-sale marketable investments. The Company has concluded that it is more- likely- than-

not

that the securities will be held until maturity or the recovery of their cost basis.

securities were in an unrealized loss position for more than

months.

The following table summarizes the contractual maturities of the Company

’s available-for-sale securities, classified as marketable investments as of

September 30, 2017 (

in thousands):

	Amount
Due in less than one year	$	30,410
Due in 1 to 3 years		5,282
Total marketable investments	$	35,692

Note 3 - Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Fair Value Disclosures [Text Block]

Note

Fair Value of Financial Instruments

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. The fair value hierarchy distinguishes between (

) market participant assumptions developed based on market data obtained from independent sources

(observable inputs)

and (

) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (

unobservable inputs

). The fair value hierarchy consists of

three

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

(Level

)

and the lowest priority to unobservable inputs

(Level

The

three

levels of the fair value hierarchy are described below:

●

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

market activity and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions.

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

As of

September 30, 2017,

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 were as follows (in thousands):

September 30, 2017	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	1,636	$	—	$	—	$	1,636
Commercial paper		—		6,445		—		6,445
Marketable investments:
Available-for-sale securities		—		35,392		—		35,392
Total assets at fair value	$	1,636	$	42,137	$	—	$	43,773

As of

December 31, 2016,

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 was as follows (in thousands):

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

The Company

’s Level

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 weighted average remaining maturity of the Company’s Level

investments as of

September 30, 2017

is less than

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

- Definition

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

+ References + Details

Note 5 - Warranty

9 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Product Warranty Disclosure [Text Block]

Note

Warranty

The Company provides a standard

one

-year warranty on all systems. For direct sales to end customers, warranty coverage provided is for labor and parts necessary to repair the systems during the warranty period. For sales to distributors, we provide a

month warranty for parts only. The distributor provides the labor to their end customer.

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, Switzerland and the 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. The following table provides the changes in the product warranty accrual for the

three

and

nine

months ended

September 30, 2017

and

2016

(in thousands):

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2017			2016			2017			2016
Beginning Balance	$	2,877		$	2,000		$	2,461		$	1,819
Add: Accruals for warranties issued during the period		959			1,202			5,038			3,634
Less: Warranty related expenses during the period		(896	)		(1,102	)		(4,559	)		(3,353	)
Ending Balance	$	2,940		$	2,100		$	2,940		$	2,100

Note 6 - Deferred Service Contract Revenue

9 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Deferred Revenue Disclosure [Text Block]

Note

Deferred Service Contract Revenue

The Company generates Service revenue from the sale of extended service contracts and from time and material services provided to customers who are

not

under a warranty or extended service contract. Service contract revenue is recognized on a straight-line basis over the period of the applicable contract. Service revenue from time and material services is recognized as the services are provided.

The following table provides changes in the deferred service contract revenue balance for the

three

and

nine

month ended

September 30, 2017

and

2016

(in thousands):

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2017			2016			2017			2016
Beginning Balance	$	10,013		$	10,223		$	9,431		$	10,469
Add: Payments received		3,178			2,517			10,290			8,825
Less: Revenue recognized		(3,233	)		(3,447	)		(9,763	)		(10,001	)
Ending Balance	$	9,958		$	9,293		$	9,958		$	9,293

Costs incurred by the Company for servicing extended service contracts were

$1.2

million and

$1.7

million for the

three

months ended

September 30, 2017

and

2016,

respectively; and

$4.2

million and

$4.9

million for the

nine

months ended

September 30, 2017

and

2016,

respectively.

Note 7 - Stockholders' Equity and Stock-based Compensation Expense

9 Months Ended

Sep. 30, 2017

Notes to Financial Statements

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

Note

Stockholders

’ Equity and Stock-based Compensation Expense

Amended and Restated

2004

Equity Incentive Plan

he Company’s Board of Directors (“Board”) and stockholders approved the amendment and restatement of the

2004

equity incentive plan (“Amended and Restated

2004

Equity Incentive Plan”) in

April

and

June 2017,

respectively. The amendments included the extension of the term of the plan to the date of the annual meeting of the Company’s stockholders in

2022,

an increase in the number of shares available for future grant by

1,600,000

shares, and other terms of the plan. The Amended and Restated

2004

Equity Incentive Plan provides for the grant of incentive stock options, non-statutory stock options, restricted stock, restricted stock units ("RSUs"), stock appreciation rights, performance stock units ("PSUs"), performance shares, and other stock or cash awards.

Activity under the Company

’s Amended and Restated

2004

Equity Incentive Plan for the

nine

months ended

September 30, 2017

is summarized as follows:

				Options Outstanding
	Shares Available for Grant			Number of Stock Options Outstanding			Weighted- Average Exercise Price
Balance as of December 31, 2016		721,657			1,116,472		$	9.56
Additional shares reserved		1,600,000
Options granted		(154,000	)		154,000			21.82
Stock awards granted (1) (2)		(558,694	)
Options exercised		—			(447,673	)		8.90
Options canceled		53,393			(53,393	)		16.58
Stock awards canceled (1)		110,278
Balance, as of September 30, 2017		1,772,634			769,406		$	11.91

(

)

The Company has a “fungible share” provision in its Amended and Restated

2004

Equity Incentive Plan whereby for each full-value award issued or canceled under the Amended and Restated

2004

Equity Incentive Plan requires the subtraction or addition of

2.12

shares from or to the shares available for grant, as applicable.

(

)

Included in the 'Stock awards granted' total of

558,694

, are

221,540

fungible shares relating to

104,500

of PSUs granted. These PSUs

may

result in a lower number of shares of common stock that

may

be released on

January 1, 2018,

based on PSUs forfeited due to employment terminations and the degree of achievement of

two

performance goals compared to targets that were pre-determined by the Board and disclosed in a Current Report on Form

-K filed with the SEC on

January 11, 2017.

As of

September 30, 2017,

unrecognized compensation expense, net of projected forfeitures, related to non-vested equity awards issued under the Company

’s Amended and Restated

2004

Equity Incentive Plan and the

2004

Employee Stock Purchase Plan (“ESPP”),

was approximately

$4.9

million. This expense is expected to be recognized over the remaining weighted-average period of

1.88

years. The actual expense recorded in the future

may

be higher or lower based on a number of factors, including, actual forfeitures experienced and the degree of achievement of the performance goals related to the granted PSUs.

Pursuant to the Company

’s Amended and Restated

2004

Equity Incentive Plan and the ESPP, the Company issued the following number of shares of common stock during the

three

and

nine

months ended

September 30, 2017

and

2016:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
Stock options		77,511		413,588		447,673		706,522
Stock awards , net of shares withheld to satisfy employees’ minimum income tax withholding		9,881		8,107		152,972		114,832
ESPP		—		—		51,185		41,980
Total stock issued		87,392		421,695		651,830		863,334

Stock Repurchase Program

February 8, 2016,

the Company announced that Board approved the expansion of its Stock Repurchase Program by

$10

million, under which the Company is authorized to repurchase shares of its common stock. As of

December 31, 2016,

there remained an additional

$5.1

million in the Stock Repurchase Program to use for repurchasing the Company

’s common stock. On

February 13, 2017

and

July 28, 2017

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

million and

$25

million, respectively.

In the

three

and

nine

months ended

September 30, 2017,

the Company repurchased

184,536

and

518,780

shares of its common stock for approximately

$6.7

million and

$13.8

million, respectively. As of

September 30, 2017,

there remained an additional

$21.4

million available in the Stock Repurchase Program to repurchase shares of common stock. All shares repurchased were retired and returned to authorized but unissued status.

Stock-based Compensation Expense

Stock-based compensation expense

by department recognized during the

three

and

nine

months ended

September 30, 2017

and

2016,

were as follows (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
Cost of revenue	$	101	$	73	$	377	$	254
Sales and marketing		394		239		1,215		844
Research and development		157		131		633		416
General and administrative		345		127		1,398		1,138
Total stock-based compensation expense	$	997	$	570	$	3,623	$	2,652

Note 9 - Net Income (Loss) Per Share

9 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Earnings Per Share [Text Block]

Note

. Net Income (Loss) Per Share

Basic net income (loss) per share is computed using the weighted-average number of shares outstanding during the period. In periods of net income, diluted shares outstanding include the dilutive effect of in-the-money equity awards (stock options, restricted stock units, performance stock units and employee stock purchase plan contributions), which is calculated based on the average share price for each fiscal period using the treasury stock method. 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 table sets forth the computation of basic and diluted net

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
Numerator
Net income (loss)	$	6,188	$	1,644	$	7,113	$	(1,636	)
Denominator
Weighted average shares of common stock outstanding used in computing net income (loss) per share, basic		13,973		13,163		13,917		13,102
Dilutive effect of incremental shares and share equivalents		794		381		816		—
Weighted average shares of common stock outstanding used in computing net income (loss) per share, diluted		14,767		13,544		14,733		13,102
Net income (loss) per share:
Net income (loss) per share, basic	$	0.44	$	0.12	$	0.51	$	(0.12	)
Net income (loss) per share, diluted	$	0.42	$	0.12	$	0.48	$	(0.12	)

The following numbers 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 period presented because including them would have had an anti-dilutive effect (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
Options to purchase common stock		42		1,740		31		1,952
Restricted stock units		—		334		6		395
Performance stock units		—		64		—		81
Employee stock purchase plan shares		—		40		—		83
Total		42		2,178		37		2,511

Note 10 - Income Taxes	9 Months Ended
Note 10 - Income Taxes	Sep. 30, 2017
Notes to Financial Statements
Income Tax Disclosure [Text Block]	Note 10 . Income Taxes The Company calculates the provision for income taxes during interim reporting periods by applying an estimate of the annual effective tax rate for the full fiscal year to “ordinary” income or loss (pretax income or loss excluding unusual or infrequently occurring discrete items) for the reporting period. When applicable, the year-to-date tax provision reflects adjustments from discrete tax items. In the quarter ended December 31, 2016, the Company adopted ASU No. 2016 - 09, Improvements to Employee Share-Based Payment Accounting. As a result of the adoption of the ASU No. 2016 - 09, the nine months ended September 30, 2017 tax provision includes the discrete accounting of the net tax benefit of excess compensation cost (“windfalls”). In the periods prior to the adoption of ASU No. 2016 - 09, the tax benefit of windfalls and tax deficiencies (“shortfalls”) were recorded in equity to the extent of previous windfalls, and then to the income statement. For the nine - month period ended September 30, 2016, the Company used a discrete effective tax rate method to calculate the provision for income taxes. The Company determined that since small changes in estimated “ordinary” income would result in significant changes in the estimated annual effective tax rate, the historical method would not provide a reliable estimate for the fiscal nine -month period ended September 30, 2016. The Company ’s income tax expense of $225,000 and $166,000 for the three and nine months ended September 30, 2017, respectively, related primarily to the Company’s U.S. and non-U.S. operations based on the annual effective tax rate method. In addition, it included a tax benefit for excess tax deductions of approximately $50,000 and $160,000 recorded discretely in the three and nine months ended September 30, 2017, respectively. The Company’s income tax expense for the three and nine months ended September 30, 2016 was $61,000 and $115,000, respectively, and related primarily to income taxes of the Company’s non-U.S. operations. The Company utilizes the asset and liability method of accounting for income taxes, under which deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using enacted tax rates expected to be in effect during the years in which the basis differences reverse. A valuation allowance is recorded when it is more likely than not that some of the deferred tax assets will not be realized. Significant management judgment is required in determining any valuation allowance recorded against deferred tax assets. In evaluating the ability to recover deferred tax assets, the Company considered available positive and negative evidence giving greater weight to its recent historical financial results and lesser weight to its projected financial results, due to the subjectivity involved in forecasting future periods. The Company also considered, commensurate with its objective verifiability, the forecast of future taxable income including the reversal of temporary differences and the implementation of feasible and prudent tax planning strategies. As of September 30, 2017 and December 31, 2016 the Company had a 100% valuation allowance against its U.S. deferred tax assets. In the near future, as and when the Company concludes that sufficient positive evidence, including its estimate of future taxable income, exists to support a reversal of all or a portion of the valuation allowance, then the Company expects that a significant portion of any release of the valuation allowance will be recorded as an income tax benefit at the time of release, which will have a material impact on the financial statements. Thereafter, the income tax expense recorded in future quarters could also be significantly higher than it has been since fiscal year 2009, when we recorded a valuation allowance for our U.S. deferred tax assets.

Note 11 - Commitments and Contingencies

9 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

Note

. Commitments and Contingencies

Operating

Lease

The Company leases space for operations in United States, Japan

and France. Future minimum lease commitments under the Company’s facility operating leases as of

September 30, 2017

were as follows (in thousands):

Year Ending September 30,	Amount
2018	$	2,446
2019		2,677
2020		2,743
2021		2,593
2022		2,477
2023 and beyond		838
Total f uture minimum lease payments	$	13,774

In addition to the above facility leases, the Company also routinely leases automobiles for certain sales and field service employees under operating leases for which the remaining committed lease payments are

not

material.

Contingencies

The Company is named from time to time as a party to product liability, contractual lawsuits and other general corporate matters 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

September 30, 2017,

there were

material exposures beyond the amounts accrued in the Company's financial statements.

The Company is

not

currently a party to any material legal proceedings.

Significant Accounting Policies (Policies)	9 Months Ended
Significant Accounting Policies (Policies)	Sep. 30, 2017
Accounting Policies [Abstract]
Consolidation, Subsidiaries or Other Investments, Consolidated Entities, Policy [Policy Text Block]	Description of Operations and Principles of Consolidation Cutera, Inc. (“ 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: enlighten ® , 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 (i) systems, system upgrades and hand pieces (classified as “Systems” revenue); (ii) hand piece refills applicable to Titan ® and truSculpt (classified as “Hand Piece Refills”); and (iii) the distribution of third party manufactured skincare products (classified as "Skincare” revenue); and collectively classified as “Products” revenue. In addition to Products revenue, the Company generates revenue from the sale of post-warranty service contracts, parts, detachable hand piece replacements (except for Titan and truSculpt ) 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, Switzerland and the United Kingdom. These subsidiaries market, sell and service the Company ’s products outside of the United States. The Condensed Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All inter-company accounts, transactions and balances have been eliminated.
Unaudited Interim Financial Information [Policy Text Block]	Unaudited Interim Financial Information The interim financial information filed included in this report is unaudited. The Condensed Consolidated Financial Statements included in this report reflect all adjustments (consisting only of normal recurring adjustments) that the Company considers necessary for the fair presentation of the results of operations for the interim periods covered and of the financial condition of the Company at the date of the interim balance sheet. The December 31, 2016 Condensed Consolidated Balance Sheet was derived from audited financial statements, but does not include all disclosures required by generally accepted accounting principles in the United States of America (“GAAP”). The results for interim periods are not necessarily indicative of the results for the entire year or any other interim period. The Condensed Consolidated Financial Statements should be read in conjunction with the Company ’s previously filed audited financial statements and the notes thereto included in the Company’s annual report on Form 10 -K for the year ended December 31, 2016 filed with the Securities and Exchange Commission (the “SEC”) on March 15, 2017.
Use of Estimates, Policy [Policy Text Block]	Use of Estimates The preparation of interim Condensed Consolidated Financial Statements in conformity with GAAP requires the Company ’s management to make estimates and assumptions that affect the amounts reported and disclosed in the Condensed Consolidated Financial Statements and the accompanying notes. These estimates are based on management's best knowledge of current events and actions we may undertake in the future. Actual results could differ materially from those estimates. On an ongoing basis, the Company evaluates these estimates, including those related to revenue elements, warranty obligations, sales commissions, accounts receivable and sales allowances, provision for excess and obsolete inventories, fair values of marketable investments, useful lives of property and equipment, fair values of performance stock units and options to purchase the Company’s stock, recoverability of deferred tax assets, legal matters and claims, and effective income tax rates, among others. Management bases these 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.
New Accounting Pronouncements, Policy [Policy Text Block]	Recent Accounting Pronouncements Not Yet Adopted Revenue Recognition In May 2014, the Financial Accounting Standards Board ("FASB”), jointly with the International Accounting Standards Board, issued Accounting Standards Update (“ASU”) No. 2014 - 09, Revenue from Contracts with Customers. This new standard will replace most of the existing revenue recognition guidance in GAAP when it becomes effective and permits the use of either the retrospective or the modified retrospective method (or cumulative effect transition method). The standard's core principle is that a reporting entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In applying this new guidance to contracts within its scope, an entity will: ( 1 ) identify the contract(s) with a customer, ( 2 ) identify the performance obligation in the contract, ( 3 ) determine the transaction price, ( 4 ) allocate the transaction price to the performance obligations in the contract, and ( 5 ) recognize revenue when (or as) the entity satisfies a performance obligation. Additionally, this new guidance would require significantly expanded disclosures about revenue. The new standard is effective for annual reporting periods (including interim reporting periods within those annual periods) beginning after December 15, 2017. Entities have the option of using either a full retrospective or a modified retrospective approach to adopt this new standard. While the Company has not completed its evaluation, the Company currently plans to adopt this accounting standard in the first quarter of fiscal year 2018 using the modified retrospective method. Based on the analysis performed through the third quarter of 2017, t he Company believes that the timing and measurement of revenue recognition under its contracts with customers for its Product and Service revenue will not change significantly. However, the basis of revenue recognition will change to one based on the transfer of control of products and services. Also based on the analysis performed, the Company expects that incremental contract acquisition costs of obtaining revenue generating contracts, such as sales commissions paid in connection with system sales with multi-year post-warranty service contracts, would be capitalized and amortized over the customer relationship period . Under the current guidance, the Company expenses such costs when incurred. The Company is in the process of calculating the adjustment that would be required for capitalizing the sales commissions to accumulated deficit and completing the analysis and documentation required for the implementation of ASC 606 upon adoption of the standard on January 1, 2018. The new revenue standard is principle-based and interpretation of those principles may vary from company to company based on their unique circumstances. It is possible that interpretation, industry practice, and guidance may evolve as companies and the accounting profession work to implement this new standard. As the Company completes its evaluation of this new standard, new information may arise that could change the Company’s current understanding of the impact to revenue and expense recognized. Additionally, the Company will continue to monitor industry activities and any additional guidance provided by regulators, standards setters, or the accounting profession and adjust the Company’s assessment and implementation plans accordingly. The new standard requires comprehensive disclosures of quantitative and qualitative information that enables users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company is in the process of preparing the expanded disclosure required under ASC 606. Accounting for Leases In February 2016, the FASB issued ASU No. 2016 - 02, Leases (Topic 842 ), which amends the existing accounting standards for leases. The new standard requires lessees to record a right-of-use asset and a corresponding lease liability on the balance sheet (with the exception of short-term leases). The new standard also requires expanded disclosures regarding leasing arrangements. The new standard becomes effective for the Company in the first quarter of fiscal year 2019 and early adoption is permitted. The new standard is required to be adopted using the modified retrospective approach and requires application of the new standard at the beginning of the earliest comparative period presented. The Company generally does not finance purchases of equipment or other capital, but does lease some of its facilities. Several of the Company ’s customers finance purchases of its system products through third party lease companies and not directly with the Company. The Company does not believe that the new standard will change customer buying patterns or behaviors for its products. T he Company expects that upon adoption, right-of-use assets and lease liabilities will be recognized in the balance sheet in amounts that will be material. Accounting for Income Taxes In October 2016, the FASB issued ASU No. 2016 - 16, Income Taxes (Topic 740 ): Intra-Entity Transfer of Assets Other than Inventory, which requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. This ASU will be effective for the Company in the first quarter of 2018. This ASU is required to be adopted using the modified retrospective approach, with a cumulative catch-up adjustment to retained earnings in the period of adoption. The Company does not believe that adopting this ASU will have a material impact on the financial Statements. Adopted Accounting Pronouncement Beginning fiscal year 2017, the Company adopted ASU No. 2016 - 09, Improvements to Employee Share-based Payment Accounting, which changes among other things, how the tax effects of share-based awards are recognized. ASU No. 2016 - 09 requires excess tax benefits and tax deficiencies to be recognized in the provision for income taxes as discrete items in the period when the awards vest or are settled, whereas previously such income tax effects were generally recorded as part of additional paid-in capital. The provision for income taxes for the three and nine months ended September 30, 2017, included excess tax benefits of $50,000 and $160,000, respectively. The recognized excess tax benefits resulted from share-based compensation awards primarily associated with employee equity plans that were vested or settled in the three and nine months ended September 30, 2017. This ASU also eliminates the requirement to reclassify cash flows related to excess tax benefits from operating activities to financing activities on the consolidated statements of cash flows. The Company also excluded the related tax benefits when applying the treasury stock method for computing diluted shares outstanding on a prospective basis as required by this ASU. In addition, the Company elected to continue its current practice of estimating expected forfeitures. The amount of excess tax benefits and deficiencies recognized in the provision for income taxes will fluctuate from period to period based on the price of the Company’s stock, the volume of share-based instruments settled or vested, and the value assigned to share-based instruments under GAAP.

Note 2 - Cash, Cash Equivalents and Marketable Investments (Tables)

9 Months Ended

Sep. 30, 2017

Notes Tables

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

September 30, 2017	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Market Value
Cash and cash equivalents:
Cash	$	6,703	$	—	$	—		$	6,703
Money market funds		1,636		—		—			1,636
Commercial paper		6,445		—		—			6,445
Total cash and cash equivalents		14,784		—		—			14,784

Marketable investments:
U.S. government notes		5,133		—		(4	)		5,129
U.S. government agencies		—		—		—			—
Municipal securities		201		—		—			201
Commercial paper		15,942		1		(1	)		15,942
Corporate debt securities		14,419		9		(8	)		14,420
Total marketable investments		35,695		10		(13	)		35,692

Total cash, cash equivalents and marketable investments	$	50,479	$	10	$	(13	)	$	50,476

December 31, 2016	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Market Value
Cash and cash equivalents:
Cash	$	6,672	$	—	$	—		$	6,672
Money market funds		6,053		—		—			6,053
Commercial paper		1,050		—		—			1,050
Total 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 investments		40,311		9		(21	)		40,299

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

Investments Classified by Contractual Maturity Date [Table Text Block]

	Amount
Due in less than one year	$	30,410
Due in 1 to 3 years		5,282
Total marketable investments	$	35,692

Note 3 - Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2017

Notes Tables

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

September 30, 2017	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	1,636	$	—	$	—	$	1,636
Commercial paper		—		6,445		—		6,445
Marketable investments:
Available-for-sale securities		—		35,392		—		35,392
Total assets at fair value	$	1,636	$	42,137	$	—	$	43,773

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

- Definition

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

+ References + Details

Note 4 - Balance Sheet Details (Tables)

9 Months Ended

Sep. 30, 2017

Notes Tables

Schedule of Inventory, Current [Table Text Block]

	September 30, 2017		December 31, 2016
Raw materials	$	18,201	$	10,966
Finished goods		5,527		4,011
Total	$	23,728	$	14,977

Schedule of Accrued Liabilities [Table Text Block]

	September 30, 2017		December 31, 2016
Accrued payroll and related expenses	$	10,869	$	9,036
Sales and marketing programs		3,060		706
Warranty liability		2,940		2,461
Sales tax		2,206		2,373
Other		3,128		2,821
Total	$	22,203	$	17,397

Note 5 - Warranty (Tables)

9 Months Ended

Sep. 30, 2017

Notes Tables

Schedule of Product Warranty Liability [Table Text Block]

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2017			2016			2017			2016
Beginning Balance	$	2,877		$	2,000		$	2,461		$	1,819
Add: Accruals for warranties issued during the period		959			1,202			5,038			3,634
Less: Warranty related expenses during the period		(896	)		(1,102	)		(4,559	)		(3,353	)
Ending Balance	$	2,940		$	2,100		$	2,940		$	2,100

Note 7 - Stockholders' Equity and Stock-based Compensation Expense (Tables)

9 Months Ended

Sep. 30, 2017

Notes Tables

Share-based Compensation, Activity [Table Text Block]

				Options Outstanding
	Shares Available for Grant			Number of Stock Options Outstanding			Weighted- Average Exercise Price
Balance as of December 31, 2016		721,657			1,116,472		$	9.56
Additional shares reserved		1,600,000
Options granted		(154,000	)		154,000			21.82
Stock awards granted (1) (2)		(558,694	)
Options exercised		—			(447,673	)		8.90
Options canceled		53,393			(53,393	)		16.58
Stock awards canceled (1)		110,278
Balance, as of September 30, 2017		1,772,634			769,406		$	11.91

Share-based Compensation, Activity Pursuant to Amended Plans [Text Block]

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
Stock options		77,511		413,588		447,673		706,522
Stock awards , net of shares withheld to satisfy employees’ minimum income tax withholding		9,881		8,107		152,972		114,832
ESPP		—		—		51,185		41,980
Total stock issued		87,392		421,695		651,830		863,334

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
Cost of revenue	$	101	$	73	$	377	$	254
Sales and marketing		394		239		1,215		844
Research and development		157		131		633		416
General and administrative		345		127		1,398		1,138
Total stock-based compensation expense	$	997	$	570	$	3,623	$	2,652

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

9 Months Ended

Sep. 30, 2017

Notes Tables

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
Numerator
Net income (loss)	$	6,188	$	1,644	$	7,113	$	(1,636	)
Denominator
Weighted average shares of common stock outstanding used in computing net income (loss) per share, basic		13,973		13,163		13,917		13,102
Dilutive effect of incremental shares and share equivalents		794		381		816		—
Weighted average shares of common stock outstanding used in computing net income (loss) per share, diluted		14,767		13,544		14,733		13,102
Net income (loss) per share:
Net income (loss) per share, basic	$	0.44	$	0.12	$	0.51	$	(0.12	)
Net income (loss) per share, diluted	$	0.42	$	0.12	$	0.48	$	(0.12	)

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
Options to purchase common stock		42		1,740		31		1,952
Restricted stock units		—		334		6		395
Performance stock units		—		64		—		81
Employee stock purchase plan shares		—		40		—		83
Total		42		2,178		37		2,511

Note 2 - Cash, Cash Equivalents and Marketable Investments (Details Textual) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	$ 13,000	$ 21,000
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	$ 0

Note 2 - Cash, Cash Equivalents and Marketable Investments - Unrealized Gains and Losses Related to Marketable Investments (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015
Cash and cash equivalents, Amortized Cost	$ 14,784,000	$ 13,775,000	$ 11,275,000	$ 10,868,000
Cash and cash equivalents, Fair Market Value	14,784,000	13,775,000
Marketable investments, Amortized Cost	35,695,000	40,311,000
Marketable investments, Gross Unrealized Gains	10,000	9,000
Marketable investments, Gross Unrealized Losses	(13,000)	(21,000)
Marketable investments, Fair Market Value	35,692,000	40,299,000
Marketable investments, Amortized Cost	50,479,000	54,086,000
Marketable investments, Fair Market Value	50,476,000	54,074,000
US Treasury and Government [Member]
Marketable investments, Amortized Cost	5,133,000	8,403,000
Marketable investments, Gross Unrealized Gains		4,000
Marketable investments, Gross Unrealized Losses	(4,000)	(9,000)
Marketable investments, Fair Market Value	5,129,000	8,398,000
US Government Agencies Debt Securities [Member]
Marketable investments, Amortized Cost		3,918,000
Marketable investments, Gross Unrealized Gains
Marketable investments, Gross Unrealized Losses		(2,000)
Marketable investments, Fair Market Value		3,916,000
US States and Political Subdivisions Debt Securities [Member]
Marketable investments, Amortized Cost	201,000	1,325,000
Marketable investments, Gross Unrealized Gains
Marketable investments, Gross Unrealized Losses
Marketable investments, Fair Market Value	201,000	1,325,000
Commercial Paper, Not Included with Cash and Cash Equivalents [Member]
Marketable investments, Amortized Cost	15,942,000	12,299,000
Marketable investments, Gross Unrealized Gains	1,000	2,000
Marketable investments, Gross Unrealized Losses	(1,000)	(2,000)
Marketable investments, Fair Market Value	15,942,000	12,299,000
Corporate Debt Securities [Member]
Marketable investments, Amortized Cost	14,419,000	14,366,000
Marketable investments, Gross Unrealized Gains	9,000	3,000
Marketable investments, Gross Unrealized Losses	(8,000)	(8,000)
Marketable investments, Fair Market Value	14,420,000	14,361,000
Cash [Member]
Cash and cash equivalents, Amortized Cost	6,703,000	6,672,000
Cash and cash equivalents, Fair Market Value	6,703,000	6,672,000
Money Market Funds [Member]
Cash and cash equivalents, Amortized Cost	1,636,000	6,053,000
Cash and cash equivalents, Fair Market Value	1,636,000	6,053,000
Commercial Paper [Member]
Cash and cash equivalents, Amortized Cost	6,445,000	1,050,000
Cash and cash equivalents, Fair Market Value	$ 6,445,000	$ 1,050,000

Note 2 - Cash, Cash Equivalents and Marketable Investments - Maturities of Available-for-sale Securities (Details) $ in Thousands	Sep. 30, 2017 USD ($)
Due in less than one year	$ 30,410
Due in 1 to 3 years	5,282
Total marketable investments	$ 35,692

Note 3 - Fair Value of Financial Instruments - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Cash equivalents:
Cash Equivalents	$ 14,784	$ 13,775
Marketable investments:
Available-for-sale securities	35,692	40,299
Money Market Funds [Member]
Cash equivalents:
Cash Equivalents	1,636	6,053
Commercial Paper [Member]
Cash equivalents:
Cash Equivalents	6,445	1,050
Fair Value, Measurements, Recurring [Member]
Marketable investments:
Available-for-sale securities	35,392	40,299
Total assets at fair value	43,773	47,402
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member]
Marketable investments:
Total assets at fair value	1,636	6,053
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 2 [Member]
Marketable investments:
Available-for-sale securities	35,392	40,299
Total assets at fair value	42,137	41,349
Fair Value, Measurements, Recurring [Member] \| Money Market Funds [Member]
Cash equivalents:
Cash Equivalents	1,636	6,053
Fair Value, Measurements, Recurring [Member] \| Money Market Funds [Member] \| Fair Value, Inputs, Level 1 [Member]
Cash equivalents:
Cash Equivalents	1,636	6,053
Fair Value, Measurements, Recurring [Member] \| Commercial Paper [Member]
Cash equivalents:
Cash Equivalents	6,445	1,050
Fair Value, Measurements, Recurring [Member] \| Commercial Paper [Member] \| Fair Value, Inputs, Level 2 [Member]
Cash equivalents:
Cash Equivalents	$ 6,445	$ 1,050

Note 4 - Balance Sheet Details - Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Raw materials	$ 18,201	$ 10,966
Finished goods	5,527	4,011
Total	$ 23,728	$ 14,977

Note 4 - Balance Sheet Details - Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Accrued payroll and related expenses	$ 10,869	$ 9,036
Sales and marketing programs	3,060	706
Warranty liability	2,940	2,461
Sales tax	2,206	2,373
Other	3,128	2,821
Total	$ 22,203	$ 17,397

Note 5 - Warranty - Summary of Warranties (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Beginning Balance	$ 2,877	$ 2,000	$ 2,461	$ 1,819
Add: Accruals for warranties issued during the period	959	1,202	5,038	3,634
Less: Warranty related expenses during the period	(896)	(1,102)	(4,559)	(3,353)
Ending Balance	$ 2,940	$ 2,100	$ 2,940	$ 2,100

Note 6 - Deferred Service Contract Revenue - Summary of Deferred Service Contract Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Beginning Balance, deferred service contract revenue	$ 10,013	$ 10,223	$ 9,431	$ 10,469
Add: Payments received	3,178	2,517	10,290	8,825
Less: Revenue recognized	(3,233)	(3,447)	(9,763)	(10,001)
Ending Balance, deferred service contract revenue	$ 9,958	$ 9,293	$ 9,958	$ 9,293

Note 7 - Stockholders' Equity and Stock-based Compensation Expense (Details Textual) - USD ($)
$ in Millions

3 Months Ended

9 Months Ended

Jul. 28, 2017

Feb. 13, 2017

Feb. 08, 2016

Sep. 30, 2017

Jun. 30, 2017

Sep. 30, 2017

Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized

1,600,000

Share Based Compensation Arrangement By Share Based Payment Award Shares Available For Grant In Period Gross

^[1],[2]

558,694

Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized

$ 4.9

Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition

1 year 321 days

Modified Stock Buyback Program [Member]

Stock Repurchase Program, Additional Amount Authorized

$ 25.0

$ 5.0

$ 10.0

Stock Repurchase Program, Remaining Authorized Repurchase Amount

$ 5.1

$ 21.4

Stock Repurchased During Period, Shares

184,536

518,780

Treasury Stock, Value, Acquired, Cost Method

$ 6.7

$ 13.8

Two Thousand Four Equity Incentive Plan [Member]

Number of Stock Awards Counted for Every Share Granted or Canceled

2.12

Share Based Compensation Arrangement By Share Based Payment Award Shares Available For Grant In Period Gross

558,694

Two Thousand Four Equity Incentive Plan [Member] | Fungible Shares [Member]

Share Based Compensation Arrangement By Share Based Payment Award Shares Available For Grant In Period Gross

221,540

Two Thousand Four Equity Incentive Plan [Member] | Performance Shares [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted

104,500

[1]

Included in 'Stock awards granted' of 558,694, was 221,540 fungible shares relating to 104,500 of PSUs granted. These PSUs may result in a lower number of shares of common stock that may be released on January 1, 2018, based on PSUs forfeited due to employment terminations and the degree of achievement of two performance goals compared to targets that were pre-determined by the Board and disclosed in a Form 8-K on January 11, 2017.

[2]

The Company has a "fungible share" provision in its Amended and Restated 2004 Equity Incentive Plan whereby for each full-value award (RSU/PSU) issued or canceled under the Plan requires the subtraction or add back of 2.12 shares from or to the Shares Available for Grant, respectively.

Note 7 - Stockholders' Equity and Stock-based Compensation Expense - Activity Under the 2004 Equity Incentive Plan (Details)

9 Months Ended

Sep. 30, 2017

$ / shares

Balance, shares available for grant (in shares)

721,657

Balance, stock options outstanding (in shares)

1,116,472

Balance, weighted-average exercise price (in dollars per share) | $ / shares

$ 9.56

Additional shares reserved (in shares)

1,600,000

Options granted, shares available for grant (in shares)

(154,000)

Options granted, stock options outstanding (in shares)

154,000

Options granted, weighted-average exercise price (in dollars per share) | $ / shares

$ 21.82

Stock awards granted(1) (2) (in shares)

(558,694)

^[1],[2]

Options exercised, stock options outstanding (in shares)

(447,673)

Options exercised, weighted-average exercise price (in dollars per share) | $ / shares

$ 8.90

Options canceled, shares available for grant (in shares)

53,393

Options canceled, stock options outstanding (in shares)

(53,393)

Options canceled, weighted-average exercise price (in dollars per share) | $ / shares

$ 16.58

Stock awards canceled(1) (in shares)

110,278

^[2]

Balance, shares available for grant (in shares)

1,772,634

Balance, stock options outstanding (in shares)

769,406

Balance, weighted-average exercise price (in dollars per share) | $ / shares

$ 11.91

[1]

[2]

Note 7 - Stockholders' Equity, Stock Plans and Stock-based Compensation Expense - Activity Pursuant to the Amended and Restated Plans (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Stock options (in shares)	77,511	413,588	447,673	706,522
Stock awards, net of shares withheld to satisfy employees’ minimum income tax withholding (in shares)	9,881	8,107	152,972	114,832
ESPP (in shares)			51,185	41,980
Total stock issued (in shares)	87,392	421,695	651,830	863,334

Note 7 - Stockholders' Equity, Stock Plans and Stock-based Compensation Expense - Stock-based Compensation Expense by Department (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Allocated Share Based Compensation Expense	$ 997	$ 570	$ 3,623	$ 2,652
Cost of Sales [Member]
Allocated Share Based Compensation Expense	101	73	377	254
Selling and Marketing Expense [Member]
Allocated Share Based Compensation Expense	394	239	1,215	844
Research and Development Expense [Member]
Allocated Share Based Compensation Expense	157	131	633	416
General and Administrative Expense [Member]
Allocated Share Based Compensation Expense	$ 345	$ 127	$ 1,398	$ 1,138

Note 9 - Net Income (Loss) Per Share - Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Net income (loss)	$ 6,188	$ 1,644	$ 7,113	$ (1,636)
Basic (in shares)	13,973	13,163	13,917	13,102
Dilutive effect of incremental shares and share equivalents (in shares)	794	381	816
Diluted (in shares)	14,767	13,544	14,733	13,102
Net income (loss) per share:
Basic (in dollars per share)	$ 0.44	$ 0.12	$ 0.51	$ (0.12)
Diluted (in dollars per share)	$ 0.42	$ 0.12	$ 0.48	$ (0.12)

Note 9 - Net Income (Loss) Per Share - Antidilutive Securities Excluded From Computation of Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Antidilutive Securities (in shares)	42	2,178	37	2,511
Employee Stock Option [Member]
Antidilutive Securities (in shares)	42	1,740	31	1,952
Restricted Stock Units (RSUs) [Member]
Antidilutive Securities (in shares)		334	6	395
Performance Shares [Member]
Antidilutive Securities (in shares)		64		81
ESPP [Member]
Antidilutive Securities (in shares)		40		83

Note 10 - Income Taxes (Details Textual) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
Note 10 - Income Taxes (Details Textual) - USD ($)	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Income Tax Expense (Benefit)	$ 225,000	$ 61,000	$ 166,000	$ 115,000
Income Tax Benefit for Excess Tax Deductions Related to Employee Share-based Compensation	$ 50,000		$ 160,000
Deferred Tax Assets Valuation Allowance Percentage			100.00%		100.00%

Note 11 - Commitments and Contingencies - Minimum Lease and Other Leased Assets Under Long-term Non-cancellable Operating Leases (Details) $ in Thousands	Sep. 30, 2017 USD ($)
2018	$ 2,446
2019	2,677
2020	2,743
2021	2,593
2022	2,477
2023 and beyond	838
Total future minimum lease payments	$ 13,774

Note 8 - Lease Termination Income	9 Months Ended
Note 8 - Lease Termination Income	Sep. 30, 2017
Notes to Financial Statements
Lease Termination Income [Text Block]	Note 8. Lease Termination Income On May 2, 2017, the Company entered into a building lease with the intent to relocate its corporate headquarters to a new facility in Fremont, California. On July 6, 2017, the Company agreed to terminate this lease in return for a lump sum receipt from the lessor of $4.0 million. Simultaneously with the execution of the lease termination, the Company entered into an amendment to its existing lease agreement for the Company to maintain its corporate headquarters in its current facility in Brisbane, California. This amendment extends the term of the lease from December 31, 2017 to January 31, 2023. The $4.0 million is reported as “Lease termination income,” as a component of operating expenses, in the Company’s Condensed Consolidated Statements of Operations for the three and nine month periods ending September 30, 2017.

Note 5 - Warranty (Details Textual)	9 Months Ended
Note 5 - Warranty (Details Textual)	Sep. 30, 2017
Warranty Term, Systems	1 year
Minimum [Member]
Warranty Term, Parts	1 year 60 days
Maximum [Member]
Warranty Term, Parts	1 year 120 days