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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 27, 2014	Oct. 23, 2014
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 27, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q3
Trading Symbol	FARO
Entity Registrant Name	FARO TECHNOLOGIES INC
Entity Central Index Key	0000917491
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		17,274,698

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 27, 2014	Dec. 31, 2013
Current assets:
Cash and cash equivalents	$ 116,910	$ 124,630
Short-term investments	64,996	64,994
Accounts receivable, net	68,939	66,309
Inventories, net	56,482	48,940
Deferred income taxes, net	5,883	4,601
Prepaid expenses and other current assets	15,901	14,645
Total current assets	329,111	324,119
Property and equipment:
Machinery and equipment	41,115	36,924
Furniture and fixtures	6,928	6,888
Leasehold improvements	15,482	11,765
Property and equipment at cost	63,525	55,577
Less: accumulated depreciation and amortization	(41,756)	(39,126)
Property and equipment, net	21,769	16,451
Goodwill	19,579	19,358
Intangible assets, net	8,834	8,112
Service inventory	21,589	19,033
Deferred income taxes, net	8,845	4,423
Total assets	409,727	391,496
Current liabilities:
Accounts payable	9,853	14,881
Accrued liabilities	23,434	20,133
Income taxes payable	418	1,690
Current portion of unearned service revenues	22,464	21,331
Customer deposits	1,223	2,910
Current portion of obligations under capital leases	8	8
Total current liabilities	57,400	60,953
Unearned service revenues - less current portion	13,635	13,414
Deferred income tax liability	1,203	1,171
Obligations under capital leases - less current portion	2	8
Other long-term liabilities	481
Total liabilities	72,721	75,546
Commitments and contingencies - See Note P
Shareholders' equity:
Common stock - par value $.001, 50,000,000 shares authorized; 17,954,933 and 17,868,372 issued; 17,274,698 and 17,188,137 outstanding, respectively	18	18
Additional paid-in capital	198,202	191,874
Retained earnings	148,394	125,867
Accumulated other comprehensive income	(533)	7,266
Common stock in treasury, at cost - 680,235 shares	(9,075)	(9,075)
Total shareholders' equity	337,006	315,950
Total liabilities and shareholders' equity	$ 409,727	$ 391,496

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 27, 2014	Dec. 31, 2013
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	17,954,933	17,868,372
Common stock, shares outstanding	17,274,698	17,188,137
Treasury stock, shares	680,235	680,235

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2014	Sep. 28, 2013	Sep. 27, 2014	Sep. 28, 2013
SALES
Product	$ 67,581	$ 55,014	$ 194,785	$ 162,670
Service	14,658	13,176	42,888	39,219
Total sales	82,239	68,190	237,673	201,889
COST OF SALES
Product	26,640	21,372	78,185	65,632
Service	9,558	7,997	27,847	23,685
Total cost of sales (exclusive of depreciation and amortization, shown separately below)	36,198	29,369	106,032	89,317
GROSS PROFIT	46,041	38,821	131,641	112,572
OPERATING EXPENSES
Selling and marketing	19,059	16,366	56,207	49,732
General and administrative	8,832	7,275	26,112	22,616
Depreciation and amortization	1,805	1,699	5,520	5,268
Research and development	7,352	5,884	19,440	16,171
Total operating expenses	37,048	31,224	107,279	93,787
INCOME FROM OPERATIONS	8,993	7,597	24,362	18,785
OTHER (INCOME) EXPENSE, net
Interest income	(28)	(19)	(67)	(54)
Other (income) expense, net	(89)	809	(78)	1,428
Interest expense	5	2	6	3
INCOME (LOSS) BEFORE INCOME TAX (BENEFIT) EXPENSE	9,105	6,805	24,501	17,408
INCOME TAX (BENEFIT) EXPENSE	(2,118)	1,763	1,974	4,161
NET INCOME	$ 11,223	$ 5,042	$ 22,527	$ 13,247
NET INCOME PER SHARE - BASIC	$ 0.65	$ 0.29	$ 1.31	$ 0.78
NET INCOME PER SHARE - DILUTED	$ 0.64	$ 0.29	$ 1.29	$ 0.77
Weighted average shares - Basic	17,258,029	17,095,066	17,233,879	17,053,223
Weighted average shares - Diluted	17,410,391	17,185,380	17,396,788	17,191,407

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2014	Sep. 28, 2013	Sep. 27, 2014	Sep. 28, 2013
Net income	$ 11,223	$ 5,042	$ 22,527	$ 13,247
Currency translation adjustments, net of tax	(7,817)	3,558	(7,799)	597
Comprehensive income	$ 3,406	$ 8,600	$ 14,728	$ 13,844

- Definition

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

+ References + Details

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 27, 2014	Sep. 28, 2013
OPERATING ACTIVITIES:
Net income	$ 22,527	$ 13,247
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	5,520	5,268
Compensation for stock options and restricted stock units	3,669	3,237
(Net recovery of) provision for bad debts	(272)	426
Deferred income tax (benefit) expense	(5,804)	996
Income tax benefit from exercise of stock options	(137)	(814)
Decrease (increase) in:
Accounts receivable	(5,392)	8,951
Inventories, net	(12,965)	620
Prepaid expenses and other current assets	(1,881)	(3,365)
(Decrease) increase in:
Accounts payable and accrued liabilities	(805)	(925)
Income taxes payable	(1,151)	(3,700)
Customer deposits	(1,659)	(258)
Unearned service revenues	2,827	512
Net cash provided by operating activities	4,477	24,195
INVESTING ACTIVITIES:
Purchases of property and equipment	(10,306)	(1,883)
Payments for intangible assets	(1,080)	(1,787)
Purchase of business acquired	(1,000)
Net cash used in investing activities	(12,386)	(3,670)
FINANCING ACTIVITIES:
Payments on capital leases	(6)	(76)
Income tax benefit from exercise of stock options	137	814
Proceeds from issuance of stock, net	2,522	3,267
Net cash provided by financing activities	2,653	4,005
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	(2,464)	(858)
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(7,720)	23,672
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	124,630	93,233
CASH AND CASH EQUIVALENTS, END OF PERIOD	$ 116,910	$ 116,905

Description of Business

9 Months Ended

Sep. 27, 2014

Description of Business

NOTE A – DESCRIPTION OF BUSINESS

FARO Technologies, Inc. and its subsidiaries (collectively the “Company” or “FARO”) designs, develops, manufactures, markets and supports portable, software driven, three-dimensional measurement and imaging systems that are used in a broad range of manufacturing, industrial, building construction and forensic applications. The Company’s FaroArm®, FARO Laser ScanArm® and FARO Gage articulated measuring devices, the FARO Laser Tracker Vantage™, the FARO Focus 3D, the FARO 3D Imager AMP, and their companion CAM2® software, provide for Computer-Aided Design, or CAD, based inspection and/or factory-level statistical process control and high-density surveying. Together, these products integrate the measurement, quality inspection, and reverse engineering functions with CAD software to improve productivity, enhance product quality and decrease rework and scrap in the manufacturing process. The Company uses the acronym “CAM2” for this process, which stands for computer-aided measurement. Primary markets for the Company’s products include automotive, aerospace, heavy equipment, universities and law enforcement agencies. The Company sells the majority of its products through a direct sales force located in many of the world’s largest industrialized countries.

Principles of Consolidation

9 Months Ended

Sep. 27, 2014

Principles of Consolidation

NOTE B – PRINCIPLES OF CONSOLIDATION

The consolidated financial statements of the Company include the accounts of FARO Technologies, Inc. and its subsidiaries, all of which are wholly-owned. All intercompany transactions and balances have been eliminated. The financial statements of the Company’s foreign subsidiaries are translated into U.S. dollars using exchange rates in effect at period-end for assets and liabilities and average exchange rates during each reporting period for results of operations. Adjustments resulting from financial statement translations are reflected as a separate component of accumulated other comprehensive income.

Basis of Presentation

9 Months Ended

Sep. 27, 2014

Basis of Presentation

NOTE C – BASIS OF PRESENTATION

The condensed, consolidated financial statements and notes thereto are unaudited. These statements include all normal recurring accruals and adjustments considered necessary by management for their fair presentation in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. The condensed consolidated results of operations for the three months and nine months ended September 27, 2014 are not necessarily indicative of results that may be expected for the year ending December 31, 2014 or any future interim period.

The information included in this Quarterly Report on Form 10-Q, including the condensed consolidated financial statements and the accompanying condensed notes, should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013. The accompanying December 31, 2013 condensed consolidated balance sheet has been derived from those audited consolidated financial statements.

Reclassifications	9 Months Ended
Reclassifications	Sep. 27, 2014
Reclassifications	NOTE D – RECLASSIFICATIONS From time to time the Company may reclassify certain amounts to conform to the current period presentation.

Impact of Recently Issued Accounting Pronouncements

9 Months Ended

Sep. 27, 2014

Impact of Recently Issued Accounting Pronouncements

NOTE E – IMPACT OF RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

In May 2014, the Financial Accounting Standards Board (“FASB”) issued an amendment to its accounting guidance related to revenue recognition. The amendment was the result of a joint project between the FASB and the International Accounting Standards Board (“IASB”) to clarify the principles for recognizing revenue and to develop common revenue standards for U.S. GAAP and International Financial Reporting Standards. To meet those objectives, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers: Topic 606 (“ASU 2014-09”). ASU 2014-09 is based on the principle that revenue is recognized to depict the transfer of 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. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The Company will adopt ASU 2014-09 in reporting periods beginning after December 15, 2016. Early adoption is not permitted. The Company is currently evaluating the impact of adopting this pronouncement on its consolidated financial statements.

Share-Based Compensation

9 Months Ended

Sep. 27, 2014

Share-Based Compensation

NOTE F – SHARE-BASED COMPENSATION

Share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized over the requisite service period, typically the vesting period. The vesting period for the share-based compensation awarded by the Company is generally three years. The Company uses the Black-Scholes option pricing model to determine the fair value of stock option grants. The Company uses the closing market price of its common stock on the date of grant to determine the fair value of restricted stock and restricted stock units.

The Company used the following assumptions for the Black-Scholes option-pricing model to determine the fair value of options granted during the nine months ended September 27, 2014 and September 28, 2013:


	Nine Months Ended
	September 27, 2014	September 28, 2013
Risk-free interest rate	0.95% - 1.32%	0.55% - 1.03%
Expected dividend yield	0%	0%
Expected option life	3 - 4 years	4 years
Expected volatility	42.5% - 45.4%	46.1% - 48.4%
Weighted-average expected volatility	42.6%	48.2%

Historical information was the primary basis for the selection of the expected dividend yield, expected volatility and the expected lives of the options. The risk-free interest rate was based on yields of U.S. zero coupon issues and U.S. Treasury issues, with a term equal to the expected life of the option being valued.

A summary of stock option activity and weighted average exercise prices for the nine months ended September 27, 2014 follows:


	Options			Weighted- Average Exercise Price		Weighted-Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value as of September 27, 2014
Outstanding at January 1, 2014		814,291		$	39.56
Granted		242,386			57.07
Forfeited		(28,209	)		46.05
Exercised		(72,092	)		34.95

Outstanding at September 27, 2014		956,376		$	44.01		4.5	$	10,167


Options exercisable at September 27, 2014		499,833		$	36.72		3.2	$	8,560

The weighted-average grant-date fair value of the stock options granted during the nine months ended September 27, 2014 and September 28, 2013 was $19.48 and $14.41 per option, respectively. The total intrinsic value of stock options exercised during the three months ended September 27, 2014 and September 28, 2013 was $0.6 million and $0.1 million, respectively. For the year-to-date periods ended September 27, 2014 and September 28, 2013, the total intrinsic value of stock options exercised totaled $1.5 million and $2.1 million, respectively. The fair value of stock options vested was $0.0 million in both the three months ended September 27, 2014 and September 28, 2013, and was $3.6 million and $3.2 million in the respective year-to-date periods.

The following table summarizes the restricted stock and restricted stock unit activity and weighted average grant-date fair values for the nine months ended September 27, 2014:


	Shares			Weighted-Average Grant Date Fair Value
Non-vested at January 1, 2014		31,448		$	41.39
Granted		13,706			43.43
Forfeited		—			—
Vested		(17,271	)		37.51

Non-vested at September 27, 2014		27,883		$	44.80

The Company recorded total share-based compensation expense of $1.2 million and $1.1 million for the three months ended September 27, 2014 and September 28, 2013, respectively, and $3.7 million and $3.3 million for the nine months ended September 27, 2014 and September 28, 2013, respectively.

As of September 27, 2014, there was $6.5 million of total unrecognized stock-based compensation expense related to non-vested stock-based compensation arrangements. The expense is expected to be recognized over a weighted average period of 2.4 years.

Cash and Cash Equivalents	9 Months Ended
Cash and Cash Equivalents	Sep. 27, 2014
Cash and Cash Equivalents	NOTE G – CASH AND CASH EQUIVALENTS The Company considers cash on hand and all short-term, highly liquid investments that have maturities of three months or less at the time of purchase to be cash and cash equivalents.

- Definition

The entire disclosure for cash and cash equivalent footnotes, which may include the types of deposits and money market instruments, applicable carrying amounts, restricted amounts and compensating balance arrangements. Cash and equivalents include: (1) currency on hand (2) demand deposits with banks or financial institutions (3) other kinds of accounts that have the general characteristics of demand deposits (4) short-term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Generally, only investments maturing within three months from the date of acquisition qualify.

+ References + Details

Short Term Investments

9 Months Ended

Sep. 27, 2014

Short Term Investments

NOTE H – SHORT TERM INVESTMENTS

Short-term investments at September 27, 2014 and December 31, 2013 included U.S. Treasury Bills totaling $65.0 million that mature through March 19, 2015. The weighted average interest rate on the U.S. Treasury Bills is less than one percent. The investments are classified as held-to-maturity and recorded at cost. The fair value of the U.S. Treasury Bills at September 27, 2014 and December 31, 2013 approximated cost.

Accounts Receivable

9 Months Ended

Sep. 27, 2014

Accounts Receivable

NOTE I – ACCOUNTS RECEIVABLE

Accounts receivable consist of the following:


	As of September 27, 2014			As of December 31, 2013
Accounts receivable	$	71,710		$	69,995
Allowance for doubtful accounts		(2,771	)		(3,686	)

Total	$	68,939		$	66,309

Inventories

9 Months Ended

Sep. 27, 2014

Inventories

NOTE J – INVENTORIES

Inventories are stated at the lower of cost or net realizable value using the first-in first-out method (“FIFO”). Shipping and handling costs are classified as a component of cost of sales in the consolidated statements of operations. Sales demonstration inventory is comprised of measuring devices utilized by sales representatives to present the Company’s products to customers. These products remain in sales demonstration inventory for approximately 6 to 12 months and are subsequently sold at prices that produce slightly reduced gross margins. Service inventory is comprised of inventory that is not expected to be sold within twelve months, such as training and loaned equipment.

Inventories consist of the following:


	As of September 27, 2014			As of December 31, 2013
Raw materials	$	23,787		$	23,692
Finished goods		13,543			7,176
Sales demonstration inventory		21,845			19,545
Reserve for excess and obsolete		(2,693	)		(1,473	)

Inventories	$	56,482		$	48,940


Service inventory	$	21,589		$	19,033

Earnings Per Share

9 Months Ended

Sep. 27, 2014

Earnings Per Share

NOTE K – EARNINGS PER SHARE

A reconciliation of the number of common shares used in the calculation of basic and diluted earnings per share (“EPS”) is presented below:


	Three Months Ended
	September 27, 2014					September 28, 2013
	Shares		Per-Share Amount			Shares		Per-Share Amount

Basic EPS		17,258,029	$	0.65			17,095,066	$	0.29
Effect of dilutive securities		152,362		(0.01	)		90,314		—


Diluted EPS		17,410,391	$	0.64			17,185,380	$	0.29


Securities excluded from the determination of weighted average shares for the calculation of diluted EPS, as they were antidilutive		412,895					463,716


	Nine Months Ended
	September 27, 2014					September 28, 2013
	Shares		Per-Share Amount			Shares		Per-Share Amount

Basic EPS		17,233,879	$	1.31			17,053,223	$	0.78
Effect of dilutive securities		162,909		(0.02	)		138,184		(0.01	)


Diluted EPS		17,396,788	$	1.29			17,191,407	$	0.77


Securities excluded from the determination of weighted average shares for the calculation of diluted EPS, as they were antidilutive		414,395					448,150

Accrued Liabilities

9 Months Ended

Sep. 27, 2014

Accrued Liabilities

NOTE L – ACCRUED LIABILITIES

Accrued liabilities consist of the following:


	As of September 27, 2014		As of December 31, 2013
Accrued compensation and benefits	$	14,630	$	11,591
Accrued warranties		2,457		2,364
Professional and legal fees		1,979		1,203
Other accrued liabilities		4,368		4,975

	$	23,434	$	20,133

Activity related to accrued warranties was as follows:


	Nine Months Ended
	September 27, 2014			September 28, 2013
Beginning Balance	$	2,364		$	2,359
Provision for warranty expense		2,697			2,639
Warranty expired		(2,604	)		(2,571	)

Ending Balance	$	2,457		$	2,427

Income Taxes

9 Months Ended

Sep. 27, 2014

Income Taxes

NOTE M – INCOME TAXES

Income tax expense decreased by $3.9 million to an income tax benefit of $2.1 million for the three months ended September 27, 2014 compared with an income tax expense of $1.8 million for the three months ended September 28, 2013. In the three months ended September 27, 2014 the Company recorded a discrete tax benefit of $4.5 million due to the reversal of a valuation allowance originally established against net operating losses in certain foreign subsidiaries. These foreign subsidiaries established a pattern of profitability, which resulted in the Company concluding during the three months ended September 27, 2014 that the valuation allowance should be reversed. The Company’s effective tax rate for the three months ended September 27, 2014 was (23.3)% compared with 25.9% for the comparable period of 2013, primarily due to the discrete benefit recorded in the quarter.

Income tax expense decreased by $2.2 million to $2.0 million for the nine months ended September 27, 2014 from $4.2 million for the nine months ended September 28, 2013. The Company’s effective tax rate decreased by 15.8 percentage points to 8.1% for the nine months ended September 27, 2014 from 23.9% for the same period in the prior year. The decline was driven by the discrete tax benefit of $4.5 million recorded in the three months ended September 27, 2014. This was partially offset by higher expense on higher pretax income and a discrete tax benefit of 2.4% recognized in the prior year period related to the retroactive legislative reinstatement on January 2, 2013 of the Research and Development tax credit for the year ended December 31, 2012. The Company’s effective tax rate continues to be lower than the statutory tax rate in the United States in part as a result of favorable tax rates in foreign jurisdictions.

Fair Value of Financial Instruments	9 Months Ended
Fair Value of Financial Instruments	Sep. 27, 2014
Fair Value of Financial Instruments	NOTE N – FAIR VALUE OF FINANCIAL INSTRUMENTS The Company’s financial instruments include cash and cash equivalents, short-term investments, accounts receivable, customer deposits and accounts payable and accruals. The carrying amounts of such financial instruments approximate their fair value due to the short-term nature of these instruments.

Segment Reporting

9 Months Ended

Sep. 27, 2014

Segment Reporting

NOTE O – SEGMENT REPORTING

The Company has three reportable segments based upon geographic regions: Americas, Europe/Africa and Asia Pacific. The Company does not allocate corporate expenses to the Europe/Africa or Asia Pacific regions. These corporate expenses are included in the Americas region. The Company does not incur Research and Development expenses in its Asia Pacific region.

The Company develops, manufactures, markets, supports and sells CAD-based quality assurance products integrated with CAD-based inspection and statistical process control software in each of these regions. These activities represent approximately 99% of consolidated sales. The Company evaluates performance and allocates resources based upon profitable growth and assets deployed.

The following table presents information about the Company’s reportable segments:


	As of and For the Three Months Ended				As of and For the Nine Months Ended
	September 27, 2014		September 28, 2013		September 27, 2014		September 28, 2013
Americas Region
Net sales to external customers	$	35,112	$	29,817	$	97,623	$	84,306
Depreciation and amortization		988		959		3,003		3,035
Operating income		1,966		1,789		3,340		2,068
Long-lived assets		31,228		22,060		31,228		22,060
Capital expenditures		4,651		554		7,778		1,315
Total assets		214,101		193,157		214,101		193,157

Europe/Africa Region
Net sales to external customers	$	26,046	$	21,516	$	78,813	$	66,623
Depreciation and amortization		490		477		1,528		1,407
Operating income		864		1,184		5,029		2,973
Long-lived assets		16,482		16,852		16,482		16,852
Capital expenditures		834		398		1,947		930
Total assets		117,824		107,518		117,824		107,518

Asia Pacific Region
Net sales to external customers	$	21,081	$	16,857	$	61,237	$	50,960
Depreciation and amortization		327		263		989		826
Operating income		6,163		4,624		15,993		13,744
Long-lived assets		2,472		2,519		2,472		2,519
Capital expenditures		266		266		581		708
Total assets		77,802		65,979		77,802		65,979

Totals
Net sales to external customers	$	82,239	$	68,190	$	237,673	$	201,889
Depreciation and amortization		1,805		1,699		5,520		5,268
Operating income		8,993		7,597		24,362		18,785
Long-lived assets		50,182		41,431		50,182		41,431
Capital expenditures		5,751		1,218		10,306		2,953
Total assets		409,727		366,654		409,727		366,654

The geographical sales information presented above represents sales to customers located in each respective region, whereas the long-lived assets information represents assets held in the respective regions. There were no customers that individually accounted for 10% or more of total sales in any of the periods presented above.

- 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=6534315&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=6534315&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=6534315&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
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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-Publisher FASB
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+ Details

Commitments and Contingencies

9 Months Ended

Sep. 27, 2014

Commitments and Contingencies

NOTE P – COMMITMENTS AND CONTINGENCIES

Leases — The Company is a party to leases arising in the normal course of business that expire on or before 2026. Total obligations under these leases are approximately $6.0 million for 2014.

Purchase Commitments — The Company enters into purchase commitments for products and services in the ordinary course of business. These purchases generally cover production requirements for 60 to 90 days. As of September 27, 2014, the Company does not have any long-term commitments for purchases.

Legal Proceedings — The Company is not involved in any legal proceedings other than routine litigation arising in the normal course of business, none of which the Company believes will have a material adverse effect on the Company’s business, financial condition or results of operations.

Line of Credit

9 Months Ended

Sep. 27, 2014

Line of Credit

NOTE Q – LINE OF CREDIT

On July 11, 2006, the Company entered into a loan agreement providing for an available line of credit of $30.0 million, which was most recently amended on March 15, 2012. Loans under the Amended and Restated Loan Agreement, as amended (“Loan Agreement”), bear interest at the rate of LIBOR plus a fixed percentage between 1.50% and 2.00% and require the Company to maintain a minimum cash balance and tangible net worth measured at the end of each of the Company’s fiscal quarters. The term of the Loan Agreement expires on March 31, 2015. The Company has not drawn on this line of credit. In March 2014, the Company entered into a letter of credit for $2.25 million which reduced the total borrowing capacity under the line of credit by that amount. The $2.25 million letter of credit expired in August 2014 and was not renewed. As of September 27, 2014, the Company was in compliance with all of the covenants under the Loan Agreement.

Share-Based Compensation (Tables)

9 Months Ended

Sep. 27, 2014

Fair Value of Options Granted


	Nine Months Ended
	September 27, 2014	September 28, 2013
Risk-free interest rate	0.95% - 1.32%	0.55% - 1.03%
Expected dividend yield	0%	0%
Expected option life	3 - 4 years	4 years
Expected volatility	42.5% - 45.4%	46.1% - 48.4%
Weighted-average expected volatility	42.6%	48.2%

Summary of Stock Option Activity

A summary of stock option activity and weighted average exercise prices for the nine months ended September 27, 2014 follows:


	Options			Weighted- Average Exercise Price		Weighted-Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value as of September 27, 2014
Outstanding at January 1, 2014		814,291		$	39.56
Granted		242,386			57.07
Forfeited		(28,209	)		46.05
Exercised		(72,092	)		34.95

Outstanding at September 27, 2014		956,376		$	44.01		4.5	$	10,167


Options exercisable at September 27, 2014		499,833		$	36.72		3.2	$	8,560

Summary of Restricted Stock Activity

The following table summarizes the restricted stock and restricted stock unit activity and weighted average grant-date fair values for the nine months ended September 27, 2014:


	Shares		Weighted-Average Grant Date Fair Value
Non-vested at January 1, 2014		31,448	$	41.39

Accounts Receivable (Tables)

9 Months Ended

Sep. 27, 2014

Accounts Receivable

Accounts receivable consist of the following:


	As of September 27, 2014			As of December 31, 2013
Accounts receivable	$	71,710		$	69,995
Allowance for doubtful accounts		(2,771	)		(3,686	)

Total	$	68,939		$	66,309

Inventories (Tables)

9 Months Ended

Sep. 27, 2014

Inventories

Inventories consist of the following:


	As of September 27, 2014			As of December 31, 2013
Raw materials	$	23,787		$	23,692
Finished goods		13,543			7,176
Sales demonstration inventory		21,845			19,545
Reserve for excess and obsolete		(2,693	)		(1,473	)

Inventories	$	56,482		$	48,940


Service inventory	$	21,589		$	19,033

Earnings Per Share (Tables)

9 Months Ended

Sep. 27, 2014

Reconciliation of Number of Common Shares Used in Calculation of Basic and Diluted Earnings Per Share (EPS)

A reconciliation of the number of common shares used in the calculation of basic and diluted earnings per share (“EPS”) is presented below:


	Three Months Ended
	September 27, 2014					September 28, 2013
	Shares		Per-Share Amount			Shares		Per-Share Amount

Basic EPS		17,258,029	$	0.65			17,095,066	$	0.29
Effect of dilutive securities		152,362		(0.01	)		90,314		—


Diluted EPS		17,410,391	$	0.64			17,185,380	$	0.29


Securities excluded from the determination of weighted average shares for the calculation of diluted EPS, as they were antidilutive		412,895					463,716


	Nine Months Ended
	September 27, 2014					September 28, 2013
	Shares		Per-Share Amount			Shares		Per-Share Amount

Basic EPS		17,233,879	$	1.31			17,053,223	$	0.78
Effect of dilutive securities		162,909		(0.02	)		138,184		(0.01	)


Diluted EPS		17,396,788	$	1.29			17,191,407	$	0.77


Securities excluded from the determination of weighted average shares for the calculation of diluted EPS, as they were antidilutive		414,395					448,150

Accrued Liabilities (Tables)

9 Months Ended

Sep. 27, 2014

Accrued Liabilities

Accrued liabilities consist of the following:


	As of September 27, 2014		As of December 31, 2013
Accrued compensation and benefits	$	14,630	$	11,591
Accrued warranties		2,457		2,364
Professional and legal fees		1,979		1,203
Other accrued liabilities		4,368		4,975

	$	23,434	$	20,133

Activity Related to Accrued Warranties

Activity related to accrued warranties was as follows:


	Nine Months Ended
	September 27, 2014			September 28, 2013
Beginning Balance	$	2,364		$	2,359
Provision for warranty expense		2,697			2,639
Warranty expired		(2,604	)		(2,571	)

Ending Balance	$	2,457		$	2,427

Segment Reporting (Tables)

9 Months Ended

Sep. 27, 2014

Segment Reporting Information

The following table presents information about the Company’s reportable segments:


	As of and For the Three Months Ended				As of and For the Nine Months Ended
	September 27, 2014		September 28, 2013		September 27, 2014		September 28, 2013
Americas Region
Net sales to external customers	$	35,112	$	29,817	$	97,623	$	84,306
Depreciation and amortization		988		959		3,003		3,035
Operating income		1,966		1,789		3,340		2,068
Long-lived assets		31,228		22,060		31,228		22,060
Capital expenditures		4,651		554		7,778		1,315
Total assets		214,101		193,157		214,101		193,157

Europe/Africa Region
Net sales to external customers	$	26,046	$	21,516	$	78,813	$	66,623
Depreciation and amortization		490		477		1,528		1,407
Operating income		864		1,184		5,029		2,973
Long-lived assets		16,482		16,852		16,482		16,852
Capital expenditures		834		398		1,947		930
Total assets		117,824		107,518		117,824		107,518

Asia Pacific Region
Net sales to external customers	$	21,081	$	16,857	$	61,237	$	50,960
Depreciation and amortization		327		263		989		826
Operating income		6,163		4,624		15,993		13,744
Long-lived assets		2,472		2,519		2,472		2,519
Capital expenditures		266		266		581		708
Total assets		77,802		65,979		77,802		65,979

Totals
Net sales to external customers	$	82,239	$	68,190	$	237,673	$	201,889
Depreciation and amortization		1,805		1,699		5,520		5,268
Operating income		8,993		7,597		24,362		18,785
Long-lived assets		50,182		41,431		50,182		41,431
Capital expenditures		5,751		1,218		10,306		2,953
Total assets		409,727		366,654		409,727		366,654

Share-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 27, 2014	Sep. 28, 2013	Sep. 27, 2014	Sep. 28, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period, years			3 years
Weighted-average grant-date fair value			$ 19.48	$ 14.41
Total intrinsic value of stock options exercised	$ 0.6	$ 0.1	$ 1.5	$ 2.1
Fair value of stock options vested	0.0	0.0	3.6	3.2
Allocated share-based compensation expense	1.2	$ 1.1	3.7	$ 3.3
Unrecognized stock-based compensation expense	$ 6.5		$ 6.5
Weighted average, expected recognition period			2 years 4 months 24 days

Fair Value of Option Granted (Detail)	9 Months Ended
Fair Value of Option Granted (Detail)	Sep. 27, 2014	Sep. 28, 2013
Fair Value, Option, Quantitative Disclosures [Line Items]
Risk-free interest rate, minimum	0.95%	0.55%
Risk-free interest rate, maximum	1.32%	1.03%
Expected dividend yield	0.00%	0.00%
Expected option life		4 years
Expected volatility, minimum	42.50%	46.10%
Expected volatility, maximum	45.40%	48.40%
Weighted-average expected volatility	42.60%	48.20%
Minimum
Fair Value, Option, Quantitative Disclosures [Line Items]
Expected option life	3 years
Maximum
Fair Value, Option, Quantitative Disclosures [Line Items]
Expected option life	4 years

Summary of Stock Option Activity (Detail) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 27, 2014 USD ($) $ / shares shares
Options Outstanding
Outstanding, beginning balance \| shares	814,291
Granted \| shares	242,386
Forfeited \| shares	(28,209)
Exercised \| shares	(72,092)
Outstanding, ending balance \| shares	956,376
Options exercisable at end of period \| shares	499,833
Weighted-Average Exercise Price
Outstanding, beginning balance \| $ / shares	$ 39.56
Granted \| $ / shares	57.07
Forfeited \| $ / shares	46.05
Exercised \| $ / shares	34.95
Outstanding, ending balance \| $ / shares	44.01
Options exercisable at end of period \| $ / shares	$ 36.72
Weighted-Average Remaining Contractual Term
Outstanding at end of period	4 years 6 months
Options exercisable at end of period	3 years 2 months 12 days
Aggregate Intrinsic Value
Outstanding at end of period \| $	$ 10,167
Options exercisable at end of period \| $	$ 8,560

Summary of Restricted Stock Activity (Detail)	9 Months Ended
Summary of Restricted Stock Activity (Detail)	Sep. 27, 2014 $ / shares shares
Shares
Non-vested at beginning of period \| shares	31,448
Granted \| shares	13,706
Forfeited \| shares
Vested \| shares	(17,271)
Non-vested at end of period \| shares	27,883
Weighted-Average Grant Date Fair Value
Non-vested at beginning of period \| $ / shares	$ 41.39
Granted \| $ / shares	43.43
Forfeited \| $ / shares
Vested \| $ / shares	37.51
Non-vested at end of period \| $ / shares	$ 44.80

Cash and Cash Equivalents - Additional Information (Detail)	9 Months Ended
	Sep. 27, 2014
Maximum
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents maturity period	3 months

Short Term Investments - Additional Information (Detail) - USD ($) $ in Thousands	Sep. 27, 2014	Dec. 31, 2013
Securities Purchased Under Agreements to Resell and Other Short Term Investment Securities [Line Items]
Short-term investments	$ 64,996	$ 64,994
Weighted average interest rate on U.S. Treasury bills, maximum	1.00%	1.00%
US Treasury Bill Securities
Securities Purchased Under Agreements to Resell and Other Short Term Investment Securities [Line Items]
Short-term investments	$ 65,000	$ 65,000

Accounts Receivable (Detail) - USD ($) $ in Thousands	Sep. 27, 2014	Dec. 31, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	$ 71,710	$ 69,995
Allowance for doubtful accounts	(2,771)	(3,686)
Total	$ 68,939	$ 66,309

Inventories - Additional Information (Detail)	9 Months Ended
Inventories - Additional Information (Detail)	Sep. 27, 2014
Inventory [Line Items]
Shelf life demonstration inventory, months	12 months
Minimum
Inventory [Line Items]
Shelf life demonstration inventory, months	6 months
Maximum
Inventory [Line Items]
Shelf life demonstration inventory, months	12 months

Inventories (Detail) - USD ($) $ in Thousands	Sep. 27, 2014	Dec. 31, 2013
Inventory [Line Items]
Raw materials	$ 23,787	$ 23,692
Finished goods	13,543	7,176
Sales demonstration inventory	21,845	19,545
Reserve for excess and obsolete	(2,693)	(1,473)
Inventories	56,482	48,940
Service inventory	$ 21,589	$ 19,033

Reconciliation of Number of Common Shares Used in Calculation of Basic and Diluted Earnings Per Share (EPS) (Detail) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 27, 2014	Sep. 28, 2013	Sep. 27, 2014	Sep. 28, 2013
Earnings Per Share [Line Items]
Basic EPS, shares	17,258,029	17,095,066	17,233,879	17,053,223
Effect of dilutive securities, shares	152,362	90,314	162,909	138,184
Diluted EPS, shares	17,410,391	17,185,380	17,396,788	17,191,407
Securities excluded from the determination of weighted average shares for the calculation of diluted EPS, as they were antidilutive	412,895	463,716	414,395	448,150
Basic EPS	$ 0.65	$ 0.29	$ 1.31	$ 0.78
Effect of dilutive securities	(0.01)		(0.02)	(0.01)
Diluted EPS	$ 0.64	$ 0.29	$ 1.29	$ 0.77

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References + Details

Accrued Liabilities (Detail) - USD ($) $ in Thousands	Sep. 27, 2014	Dec. 31, 2013	Sep. 28, 2013	Dec. 31, 2012
Schedule of Accrued Liabilities [Line Items]
Accrued compensation and benefits	$ 14,630	$ 11,591
Accrued warranties	2,457	2,364	$ 2,427	$ 2,359
Professional and legal fees	1,979	1,203
Other accrued liabilities	4,368	4,975
Accrued liabilities	$ 23,434	$ 20,133

Activity Related to Accrued Warranties (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 27, 2014	Sep. 28, 2013
Product Warranty Liability [Line Items]
Beginning Balance	$ 2,364	$ 2,359
Provision for warranty expense	2,697	2,639
Warranty expired	(2,604)	(2,571)
Ending Balance	$ 2,457	$ 2,427

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2014	Sep. 28, 2013	Sep. 27, 2014	Sep. 28, 2013
Income Taxes [Line Items]
INCOME TAX (BENEFIT) EXPENSE	$ (2,118)	$ 1,763	$ 1,974	$ 4,161
Income tax expense increase (decrease)	(3,900)		$ (2,200)
Discrete tax benefit due to the reversal of a valuation allowance	$ (4,500)
Effective tax rate	(23.30%)	25.90%	8.10%	23.90%
Increase (decrease) in income tax rate related to tax benefit of exercise of employee stock option			15.80%
Percentage of discrete tax benefit recognized in the prior year related to the retroactive legislative reinstatement				2.40%

Segment Reporting - Additional Information (Detail)	9 Months Ended
Segment Reporting - Additional Information (Detail)	Sep. 27, 2014 Segment Customer
Segment Reporting Disclosure [Line Items]
Number of reportable segments \| Segment	3
Percentage of product sales to consolidated sales	99.00%
Customers that individually accounted for 10% or more of total sales \| Customer	0

Segment Reporting Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2014	Sep. 28, 2013	Sep. 27, 2014	Sep. 28, 2013	Dec. 31, 2013
Segment Reporting Information [Line Items]
Net sales to external customers	$ 82,239	$ 68,190	$ 237,673	$ 201,889
Depreciation and amortization	1,805	1,699	5,520	5,268
Operating income	8,993	7,597	24,362	18,785
Long-lived assets	50,182	41,431	50,182	41,431
Capital expenditures	5,751	1,218	10,306	2,953
Total assets	409,727	366,654	409,727	366,654	$ 391,496
Americas Region
Segment Reporting Information [Line Items]
Net sales to external customers	35,112	29,817	97,623	84,306
Depreciation and amortization	988	959	3,003	3,035
Operating income	1,966	1,789	3,340	2,068
Long-lived assets	31,228	22,060	31,228	22,060
Capital expenditures	4,651	554	7,778	1,315
Total assets	214,101	193,157	214,101	193,157
Europe/Africa Region
Segment Reporting Information [Line Items]
Net sales to external customers	26,046	21,516	78,813	66,623
Depreciation and amortization	490	477	1,528	1,407
Operating income	864	1,184	5,029	2,973
Long-lived assets	16,482	16,852	16,482	16,852
Capital expenditures	834	398	1,947	930
Total assets	117,824	107,518	117,824	107,518
Asia Pacific Region
Segment Reporting Information [Line Items]
Net sales to external customers	21,081	16,857	61,237	50,960
Depreciation and amortization	327	263	989	826
Operating income	6,163	4,624	15,993	13,744
Long-lived assets	2,472	2,519	2,472	2,519
Capital expenditures	266	266	581	708
Total assets	$ 77,802	$ 65,979	$ 77,802	$ 65,979

Commitments and Contingencies - Additional Information (Detail) $ in Millions	9 Months Ended
	Sep. 27, 2014 USD ($)
Commitments and Contingencies [Line Items]
Lease future expiration date, year	2026
Total operating lease obligations	$ 6.0
Minimum
Commitments and Contingencies [Line Items]
Length of purchase commitments, in days	60 days
Maximum
Commitments and Contingencies [Line Items]
Length of purchase commitments, in days	90 days

Line of Credit - Additional Information (Detail) $ in Thousands	9 Months Ended
	Sep. 27, 2014 USD ($)
Line of Credit Facility [Line Items]
Available line of credit	$ 30,000
Line of credit, variable rate basis	LIBOR plus
Line of credit, expiration date	Mar. 31, 2015
Letter of credit	$ 2,250
Total borrowing capacity amount reduced	$ 2,250
LIBOR \| Minimum
Line of Credit Facility [Line Items]
Line of credit basis spread on variable rate	1.50%
LIBOR \| Maximum
Line of Credit Facility [Line Items]
Line of credit basis spread on variable rate	2.00%