Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

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Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Cash flows from operating activities      
Net income $ 51,845 $ 21,002 $ 20,519
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 11,295 12,302 13,558
Loss on rental assets and other fixed assets 1,160 1,136 1,202
Gain on sale of former rental assets (416) (64) (272)
Provision for sales returns and doubtful accounts 17,518 13,773 11,082
Provision for rental revenue adjustments 2,678 5,057 10,777
Provision for inventory losses 351 340 133
Stock-based compensation expense 12,790 9,640 7,294
Deferred income taxes (11,595) 7,947 1,036
Changes in operating assets and liabilities:      
Accounts receivable (25,963) (18,263) (32,738)
Inventories (9,972) (5,894) (7,458)
Deferred cost of revenue 2 37 (1)
Income tax receivable (1,348) (875) 1,725
Prepaid expenses and other current assets (4,526) (819) (789)
Other noncurrent assets (1,626)    
Accounts payable and accrued expenses 6,360 7,438 (86)
Accrued payroll 4,538 722 852
Warranty reserve 3,359 2,689 1,507
Deferred revenue 3,360 3,654 2,759
Income tax payable 64 225 (11)
Other noncurrent liabilities 103 447 (55)
Net cash provided by operating activities 59,977 60,494 31,034
Cash flows from investing activities      
Purchases of marketable securities (76,162) (46,933) (33,142)
Maturities of marketable securities 63,455 37,041 28,843
Investment in intangible assets (350) (3,316) (113)
Investment in property and equipment (8,043) (2,914) (1,718)
Production and purchase of rental equipment (4,580) (3,997) (6,185)
Proceeds from sale of former assets 715 183 388
Payment for acquisition, net of cash acquired   (4,494)  
Net cash used in investing activities (24,965) (24,430) (11,927)
Cash flows from financing activities      
Proceeds from stock options exercised 17,156 12,625 6,974
Proceeds from employee stock purchases 2,348 1,379 1,055
Payment of employment taxes related to release of restricted stock (1,208)    
Repayment of debt from investment in intangible assets     (315)
Net cash provided by financing activities 18,296 14,004 7,714
Effect of exchange rates on cash 373 34 (76)
Net increase in cash and cash equivalents 53,681 50,102 26,745
Cash and cash equivalents, beginning of period 142,953 92,851 66,106
Cash and cash equivalents, end of period 196,634 142,953 92,851
Supplemental disclosures of cash flow information      
Cash paid during the period for interest     10
Cash paid (received) during the period for income taxes, net of refunds received 1,653 1,267 $ (447)
Supplemental disclosures of non-cash transactions      
Property and equipment in account payable and accrued expenses $ 125 $ 70