0001628280-23-027513 | 10-Q | XBRL Viewer

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Goodwill and Other Intangible Assets - Narrative (Details) € in Millions, $ in Millions			3 Months Ended		6 Months Ended		12 Months Ended
	Jan. 22, 2021 USD ($)	Jan. 22, 2021 EUR (€)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]
Foreign currency losses					$ 1.5		$ 1.7
Amortization expense for intangible assets			$ 1.5	$ 1.5	$ 3.1	$ 3.1
UNITED STATES \| Acquired 3D Hubs
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired	$ 16.6
Europe \| Acquired 3D Hubs
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired \| €		€ 11.6

Stock-Based Compensation

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

Under the Company’s 2012 Long-Term Incentive Plan, as amended (the 2012 Plan), the Company had the ability to grant stock options, stock appreciation rights (SARs), restricted stock, restricted stock units, other stock-based awards and cash incentive awards through February 23, 2022. On July 8, 2022, the board of directors approved the Proto Labs, Inc. 2022 Long-Term Incentive Plan (the 2022 Plan), which was approved by the Company's shareholders at a Special Meeting of Shareholders on August 29, 2022. No awards were granted from February 23, 2022 to August 29, 2022. Awards outstanding under the 2012 Plan as of August 29, 2022 will continue to be subject to the terms of the 2012 Plan, but if those awards subsequently expire, are forfeited or cancelled or are settled in cash, the shares subject to those awards will become available for awards under the 2022 Plan. Under the 2022 Plan, the Company has the ability to grant stock options, stock appreciation rights (SARs), restricted stock, restricted stock units, other stock-based awards and cash incentive awards. Awards under the 2022 Plan have a maximum term of ten years from the date of grant. The compensation committee may provide that the vesting or payment of any award will be subject to the attainment of specified performance measures in addition to the satisfaction of any continued service requirements and the compensation committee will determine whether such measures have been achieved. The per-share exercise price of stock options and SARs granted under the 2022 Plan generally may not be less than the fair market value of a share of our common stock on the date of the grant.

Employee Stock Purchase Plan

The Company’s 2012 Employee Stock Purchase Plan (ESPP) allows eligible employees to purchase a variable number of shares of the Company’s common stock each offering period at a discount through payroll deductions of up to 15 percent of their eligible compensation, subject to plan limitations. The ESPP provides for six-month offering periods with a single purchase period ending May 15 and November 15, respectively. At the end of each offering period, employees are able to purchase shares at 85 percent of the lower of the fair market value of the Company’s common stock on the first trading day of the offering period or on the last trading day of the offering period.

Stock-Based Compensation Expense

Stock-based compensation expense was $3.7 million and $4.0 million for the three months ended June 30, 2023 and 2022, respectively, and $7.4 million and $8.4 million for the six months ended June 30, 2023 and 2022.

Stock Options

The following table summarizes stock option activity during the six months ended June 30, 2023:



	Stock Options	Weighted- Average Exercise Price
Options outstanding at December 31, 2022	263,992	$	79.07
Granted	186,804	33.36
Exercised	-	-
Forfeited	(35,702)	63.70
Expired	(15,848)	55.67
Options outstanding at June 30, 2023	399,246	$	59.99

Exercisable at June 30, 2023	125,050	$	90.81

The outstanding options generally have a term of ten years. For employees, options granted become exercisable ratably over the vesting period, which is generally a period of four years, beginning on the first anniversary of the grant date, subject to the employee’s continuing service to the Company.

The weighted-average grant date fair value of options that were granted during the six months ended June 30, 2023 was $16.36.

The following table provides the assumptions used in the Black-Scholes pricing model valuation of options during the six months ended June 30, 2023 and 2022:



	Six Months Ended June 30,
	2023	2022
Risk-free interest rate	3.90% - 4.55%	1.94%
Expected life (years)	2.00 - 6.25	6.25
Expected volatility	49.23% - 55.92%	45.95%
Expected dividend yield	0%	0%

As of June 30, 2023, there was $5.3 million of unrecognized compensation expense related to unvested stock options, which is expected to be recognized over a weighted-average period of 2.8 years.

Restricted Stock

Restricted stock awards are share-settled awards and restrictions lapse ratably over the vesting period, which is generally a period from three to four years, beginning on the first anniversary of the grant date, subject to the employee's continuing service to the Company. For the board of directors, restrictions generally lapse in full on the first anniversary of the grant date.

The following table summarizes restricted stock activity during the six months ended June 30, 2023:



	Restricted Stock	Weighted- Average Grant Date Fair Value Per Share
Restricted stock at December 31, 2022	478,596	$	70.36
Granted	406,150	32.50
Restrictions lapsed	(135,687)	80.02
Forfeited	(65,821)	70.09
Restricted stock at June 30, 2023	683,238	$	45.88

As of June 30, 2023, there was $25.3 million of unrecognized compensation expense related to non-vested restricted stock, which is expected to be recognized over a weighted-average period of 2.9 years.

Performance Stock

Performance stock units (PSUs) are expressed in terms of a target number of PSUs, with anywhere between 0 percent and 200 percent of that target number capable of being earned and vesting at the end of a three-year performance period depending on the Company’s performance in the final year of the performance period and the award recipient’s continued employment. Certain PSUs granted by the Company in 2021 are based on performance conditions and the related compensation cost is based on the probability that the performance conditions will be achieved. The Company’s PSUs granted in 2020, 2022, 2023 and certain PSUs granted in 2021 are based on market conditions and the related compensation cost is based on the fair value at grant date calculated using a Monte Carlo pricing model.

The following table summarizes performance stock activity during the six months ended June 30, 2023:



	Performance Stock	Weighted- Average Grant Date Fair Value Per Share
Performance stock at December 31, 2022	35,802	$	77.91
Granted	71,295	57.79
Restrictions lapsed	-	-
Performance change	-	-
Forfeited	-	-
Performance stock at June 30, 2023	107,097	$	74.08

The following table provides the assumptions used in the Monte Carlo pricing model valuation of PSUs during the six months ended June 30, 2023 and 2022:



	Six Months Ended June 30,
	2023	2022
Risk-free interest rate	4.35%	1.76%
Expected life (years)	2.88	2.87
Expected volatility	58.00%	53.50%
Expected dividend yield	0%	0%

As of June 30, 2023, there was $5.5 million of unrecognized compensation expense related to non-vested performance stock, which is expected to be recognized over a weighted-average period of 2.3 years.

Employee Stock Purchase Plan

The following table presents the assumptions used to estimate the fair value of the ESPP during the six months ended June 30, 2023 and 2022:



	Six Months Ended June 30,
	2023	2022
Risk-free interest rate	4.60 - 4.82%	0.17 - 2.06%
Expected life (months)	6.00	6.00
Expected volatility	47.38 - 67.84%	47.05 - 53.44%
Expected dividend yield	0%	0%

Basis of Presentation	6 Months Ended
Basis of Presentation	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The unaudited interim Consolidated Financial Statements of Proto Labs, Inc. (Protolabs, the Company, we, us or our) have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, the accompanying financial statements reflect all adjustments necessary for a fair presentation of the Company’s statements of financial position, results of operations and cash flows for the periods presented. Except as otherwise disclosed herein, these adjustments consist of normal, recurring items. Operating results for interim periods are not necessarily indicative of results that may be expected for the fiscal year as a whole. The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and the related disclosures at the date of the financial statements and during the reporting period. Actual results could materially differ from these estimates. For further information, refer to the audited Consolidated Financial Statements and Notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the Securities and Exchange Commission (SEC) on February 21, 2023. The accompanying Consolidated Balance Sheet as of December 31, 2022 was derived from the audited Consolidated Financial Statements but does not include all disclosures required by U.S. GAAP for a full set of financial statements. This Quarterly Report on Form 10-Q should be read in conjunction with the Company’s Consolidated Financial Statements and Notes included in the Company's Annual Report on Form 10-K filed on February 21, 2023 as referenced above.

Accumulated Other Comprehensive Income (Loss) - Changes In Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ 683,137	$ 832,035	$ 697,648	$ 828,493
Ending balance	682,685	820,698	682,685	820,698
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(33,494)	(22,305)	(34,355)	(16,817)
Ending balance	(29,221)	(36,149)	(29,221)	(36,149)
Foreign currency translation adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss) before reclassifications	348	(13,515)	875	(18,487)
Amounts reclassified from accumulated other comprehensive loss	3,906	0	3,906	0
Net current-period other comprehensive income (loss)	4,254	(13,515)	4,781	(18,487)
Net unrealized gains (losses) on investments in securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss) before reclassifications	19	(329)	353	(845)
Amounts reclassified from accumulated other comprehensive loss	0	0	0	0
Net current-period other comprehensive income (loss)	$ 19	$ (329)	$ 353	$ (845)

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

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- Definition

Amount of equity (deficit) attributable to parent. Excludes temporary equity and equity attributable to noncontrolling interest.

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+ Details

Goodwill and Other Intangible Assets - Future Amortization Expense (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Remaining 2023	$ 2,894
2024	3,741
2025	3,644
2026	3,542
2027	3,533
Thereafter	10,999
Net	$ 28,353	$ 31,250

Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Aug. 29, 2022	Jun. 30, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation expense	$ 3.7	$ 4.0	$ 7.4		$ 8.4
Stock-based award, weighted-average grant date fair value (in dollars per share)			$ 16.36
ESPP
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Discount from market price (in percent)			15.00%
Offering period (in months)			6 months
Purchase price of common stock (in percent)			85.00%
Stock Options
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based award, term (in years)			10 years
Stock-based award, vesting period (in years)			4 years
Stock based award, unrecognized compensation expense	5.3		$ 5.3
Stock based award, unrecognized compensation expense, period for recognition (in years)			2 years 9 months 18 days
Restricted Stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Awards granted in period (in shares)			406,150
Stock based award, unrecognized compensation expense	25.3		$ 25.3
Stock based award, unrecognized compensation expense, period for recognition (in years)			2 years 10 months 24 days
Restricted Stock \| Minimum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based award, vesting period (in years)			3 years
Restricted Stock \| Maximum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based award, vesting period (in years)			4 years
Performance Shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Awards granted in period (in shares)			71,295
Stock-based award, vesting period (in years)			3 years
Stock based award, unrecognized compensation expense	$ 5.5		$ 5.5
Stock based award, unrecognized compensation expense, period for recognition (in years)			2 years 3 months 18 days
Percentage of target, capable of being earned and vesting, lower limit	0.00%		0.00%
Percentage of target, capable of being earned and vesting, upper limit	200.00%		200.00%
Long-Term Incentive Plan 2012
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Awards granted in period (in shares)				0
Stock-based award, term (in years)			10 years

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company is subject to income tax in multiple jurisdictions and the use of estimates is required to determine the provision for income taxes. For the three months ended June 30, 2023 and 2022, the Company recorded an income tax provision of $2.6 million and $2.6 million, respectively. For the six months ended June 30, 2023 and 2022, the Company recorded an income tax provision of $5.0 million and $5.1 million, respectively. The income tax provision is based on the estimated annual effective tax rate for the year applied to pre-tax income. The effective income tax rate for the three months ended June 30, 2023 was 117.1 percent compared to 50.8 percent in the same period of the prior year. The effective tax rate increased by 66.3 percent for the three months ended June 30, 2023 when compared to the same period in 2022, primarily due to the tax impact of the foreign currency translation loss from the substantial completion on the closure of our Japan business. The effective income tax rate for the six months ended June 30, 2023 was 68.7 percent compared to 40.2 percent in the same period of the prior year. The effective tax rate increased by 28.5 percent for the six months ended June 30, 2023 when compared to the same period in 2022, primarily due to the tax impact of the foreign currency translation loss from the substantial completion on the closure of our Japan business. The effective income tax rate for the three and six months ended June 30, 2023 differs from the U.S. federal statutory rate of 21.0 percent due to various factors, including operating in multiple state and foreign jurisdictions and tax credits for which the Company qualifies. The Company had unrecognized tax benefits totaling $3.6 million as of June 30, 2023 and $3.2 million as of December 31, 2022, respectively, that if recognized would result in a reduction of the Company’s effective tax rate. The liabilities are classified as other long-term liabilities in the accompanying consolidated balance sheets. The Company recognizes interest and penalties related to income tax matters in income tax expense and reports the liability in current or long-term income taxes payable as appropriate.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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+ Details

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Fair Value, Assets Measured on Recurring Basis

The following table summarizes financial assets as of June 30, 2023 and December 31, 2022 measured at fair value on a recurring basis:



	June 30, 2023						December 31, 2022
(in thousands)	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Financial Assets:
Cash	$	56,768	$	-	$	-	$	38,862	$	-	$	-
Money market mutual fund	9,725		-		-		17,696		-		-
Marketable securities	5,457		30,832		-		9,881		40,106		-
Total	$	71,950	$	30,832	$	-	$	66,439	$	40,106	$	-

Fair Value Measures and Disclosures

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurements

Accounting Standards Codification, Fair Value Measurement (ASC 820), defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that requires classification based on observable and unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value:

Level 1—Quoted prices in active markets for identical assets or liabilities.

Level 2—Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The Company's assets and liabilities that are required to be measured or disclosed at fair value on a recurring basis include cash and cash equivalents and marketable securities. The Company’s cash consists of bank deposits and cash equivalents consist primarily of money market mutual funds. The Company determines the fair value of these investments using Level 1 inputs. The Company's marketable securities consist of short-term and long-term agency, municipal, corporate and other debt securities. Fair value for the corporate debt securities is primarily determined based on quoted market prices (Level 1). Fair values for the U.S. municipal securities, U.S. government agency securities, certificates of deposit and U.S. treasury securities are primarily determined using dealer quotes or quoted market prices for similar securities (Level 2).

The following table summarizes financial assets as of June 30, 2023 and December 31, 2022 measured at fair value on a recurring basis:



	June 30, 2023						December 31, 2022
(in thousands)	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Financial Assets:
Cash	$	56,768	$	-	$	-	$	38,862	$	-	$	-
Money market mutual fund	9,725		-		-		17,696		-		-
Marketable securities	5,457		30,832		-		9,881		40,106		-
Total	$	71,950	$	30,832	$	-	$	66,439	$	40,106	$	-

- 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

Segment Reporting - Long-Lived Assets by Geographic Areas (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Segment Reporting Information [Line Items]
Total Long-lived Assets	$ 248,614	$ 257,785
Operating Segments
Segment Reporting Information [Line Items]
Total Long-lived Assets	248,614	257,785
Operating Segments \| United States
Segment Reporting Information [Line Items]
Total Long-lived Assets	194,656	203,816
Operating Segments \| Europe
Segment Reporting Information [Line Items]
Total Long-lived Assets	53,958	53,835
Operating Segments \| Japan
Segment Reporting Information [Line Items]
Total Long-lived Assets	$ 0	$ 134

Intangible Assets, Goodwill and Other

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

There were no changes in the carrying amount of goodwill during the three and six months ended June 30, 2023.

Intangible assets other than goodwill at June 30, 2023 and December 31, 2022 were as follows:



	June 30, 2023						December 31, 2022						Useful Life (in years)	Weighted Average Useful Life Remaining (in years)
(in thousands)	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Intangible assets with finite lives:
Marketing assets	$	930	$	(852)	$	78	$	930	$	(806)	$	124	10.0	0.8
Non-compete agreement	832		(545)		287		828		(487)		341		2.0 - 5.0	1.8
Software technology	13,229		(7,068)		6,161		13,229		(6,383)		6,846		10.0	4.5
Software platform	26,247		(5,510)		20,737		26,054		(4,337)		21,717		12.0	9.6
Tradenames	352		(286)		66		350		(227)		123		3.0	0.6
Customer relationships	12,213		(11,189)		1,024		12,197		(10,098)		2,099		3.0 - 9.0	0.4
Total intangible assets	$	53,803	$	(25,450)	$	28,353	$	53,588	$	(22,338)	$	31,250

Intangible assets allocated to the acquired Hubs entities consisted of intangible assets of €11.6 million in Europe and $16.6 million in the United States as of the date of the acquisition. The Euro denominated intangible assets are translated at the end of each period using the current exchange rates resulting in a foreign currency translation adjustment that is recorded as a component of Other Comprehensive Income. Foreign currency losses related to intangible assets were $1.5 million and $1.7 million as of June 30, 2023 and December 31, 2022, respectively. Amortization expense for intangible assets was $1.5 million for each of the three months ended June 30, 2023 and 2022 and $3.1 million for each of the six months ended June 30, 2023 and 2022, respectively.

Estimated aggregated amortization expense based on the current carrying value of the amortizable intangible assets and current exchange rates is as follows:



(in thousands)	Estimated Amortization Expense
Remaining 2023	$	2,894
2024	3,741
2025	3,644
2026	3,542
2027	3,533
Thereafter	10,999
Total estimated amortization expense	$	28,353

Net (Loss) Income per Common Share -Schedule of Computation Of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Earnings Per Share [Abstract]
Net (loss) income	$ (383)	$ 2,659	$ 2,557	$ 5,095	$ 2,276	$ 7,652
Basic - weighted-average shares outstanding (in shares)	26,210,478		27,530,739		26,414,467	27,515,583
Effect of dilutive securities:
Employee stock options and other (in shares)	0		6,084		30,960	8,436
Diluted - weighted-average shares outstanding (in shares)	26,210,478		27,536,823		26,445,427	27,524,019
Net (loss) income per share:
Basic (in dollars per share)	$ (0.01)		$ 0.09		$ 0.09	$ 0.28
Diluted (in dollars per share)	$ (0.01)		$ 0.09		$ 0.09	$ 0.28
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive options excluded from calculation of diluted weighted average shares outstanding (in shares)	380,848		220,776		407,119	208,840
Employee Stock Option and Other
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive options excluded from calculation of diluted weighted average shares outstanding (in shares)	14,084

Recent Accounting Pronouncements	6 Months Ended
Recent Accounting Pronouncements	Jun. 30, 2023
Accounting Policies [Abstract]
Recent Accounting Pronouncements	Recent Accounting PronouncementsThe Company did not recently adopt any accounting pronouncements that had a material impact on the Company's Consolidated Financial Statements. There are no pending accounting pronouncements that are expected to have a material impact on the Company's Consolidated Financial Statements.

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Operating activities
Net income	$ 2,276	$ 7,652
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	18,883	20,274
Stock-based compensation expense	7,370	8,428
Deferred taxes	(5,605)	(5,653)
Interest on finance lease obligations	568	0
Loss on foreign currency translation	3,906	0
Impairments related to closure of Japan business	0	1,792
Gain on disposal of property and equipment	(428)	0
Other	215	32
Changes in operating assets and liabilities:
Accounts receivable	1,106	(5,748)
Inventories	(551)	(1,783)
Prepaid expenses and other	4,193	(298)
Income taxes	3,524	(1,250)
Accounts payable	(961)	(521)
Accrued liabilities and other	(2,629)	8,115
Net cash provided by operating activities	31,867	31,040
Investing activities
Purchases of property, equipment and other capital assets	(6,829)	(6,030)
Proceeds from sales of property, equipment and other capital assets	623	0
Purchases of marketable securities	0	(38,882)
Proceeds from sales of marketable securities	0	1,000
Proceeds from call redemptions and maturities of marketable securities	14,020	7,396
Net cash provided by (used in) investing activities	7,814	(36,516)
Financing activities
Proceeds from exercises of stock options	1,986	2,311
Purchases of shares withheld for tax obligations	(1,425)	(1,615)
Repurchases of common stock	(30,064)	(5,239)
Principal repayments of finance lease obligations	(163)	(278)
Net cash used in financing activities	(29,666)	(4,821)
Effect of exchange rate changes on cash and cash equivalents	(80)	(966)
Net increase (decrease) in cash and cash equivalents	9,935	(11,263)
Cash and cash equivalents, beginning of period	56,558	65,929
Cash and cash equivalents, end of period	$ 66,493	$ 54,666

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Pay vs Performance Disclosure
Net income	$ (383)	$ 2,659	$ 2,557	$ 5,095	$ 2,276	$ 7,652

- Definition

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

+ References

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+ Details

Stock-Based Compensation - Stock Activity (Details) - $ / shares	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Restricted Stock
Stock
Beginning balance (in shares)	478,596
Granted (in shares)	406,150
Restrictions lapsed (in shares)	(135,687)
Forfeited (in shares)	(65,821)
Ending balance (in shares)	683,238
Weighted- Average Grant Date Fair Value Per Share
Beginning balance, weighted-average grant date fair value (in dollars per share)		$ 70.36
Granted, weighted-average grant date fair value (in dollars per share)		32.50
Restrictions lapsed, weighted-average grant date fair value (in dollars per share)		80.02
Forfeited, weighted-average grant date fair value (in dollars per share)		70.09
Ending balance, weighted-average grant date fair value (in dollars per share)		$ 45.88
Performance Shares
Stock
Beginning balance (in shares)	35,802
Granted (in shares)	71,295
Restrictions lapsed (in shares)	0
Performance change (in shares)	0
Forfeited (in shares)	0
Ending balance (in shares)	107,097
Weighted- Average Grant Date Fair Value Per Share
Beginning balance, weighted-average grant date fair value (in dollars per share)	$ 77.91
Granted, weighted-average grant date fair value (in dollars per share)	57.79
Restrictions lapsed, weighted-average grant date fair value (in dollars per share)	0
Performance change, weighted-average grant date fair value (in dollars per share)	0
Forfeited, weighted-average grant date fair value (in dollars per share)	0
Ending balance, weighted-average grant date fair value (in dollars per share)	$ 74.08

Marketable Securities (Tables)

6 Months Ended

Jun. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Debt Securities, Available-for-Sale

The following table summarizes information regarding the Company’s short-term and long-term marketable securities as of June 30, 2023 and December 31, 2022:



	June 30, 2023
(in thousands)	Cost		Unrealized Gains		Unrealized Losses		Fair Value
U.S. municipal securities	$	12,229	$	-	$	(293)	$	11,936
Corporate debt securities	4,050		-		(93)		3,957
U.S. government agency securities	20,787		-		(637)		20,150
Certificates of deposit/time deposits	249		-		(3)		246
Total marketable securities	$	37,315	$	-	$	(1,026)	$	36,289



	December 31, 2022
(in thousands)	Cost		Unrealized Gains		Unrealized Losses		Fair Value
U.S. municipal securities	$	15,574	$	-	$	(417)	$	15,157
Corporate debt securities	9,578		-		(205)		9,373
U.S. government agency securities	25,275		-		(750)		24,525
Certificates of deposit/time deposits	939		-		(7)		932
Total marketable securities	$	51,366	$	-	$	(1,379)	$	49,987

Investments Classified by Contractual Maturity Date

The June 30, 2023 balance of available-for-sale debt securities by contractual maturity is shown in the following table at fair value. Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties.



(in thousands)	June 30, 2023
Due in one year or less	$	19,945
Due after one year through five years	16,344
Total marketable securities	$	36,289

- Definition

Tabular disclosure of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
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-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
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-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

+ Details

Marketable Securities

6 Months Ended

Jun. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Marketable Securities

The Company invests in short-term and long-term agency, municipal, corporate and other debt securities. The securities are categorized as available-for-sale and are recorded at fair value. The following table summarizes information regarding the Company’s short-term and long-term marketable securities as of June 30, 2023 and December 31, 2022:



	June 30, 2023
(in thousands)	Cost		Unrealized Gains		Unrealized Losses		Fair Value
U.S. municipal securities	$	12,229	$	-	$	(293)	$	11,936
Corporate debt securities	4,050		-		(93)		3,957
U.S. government agency securities	20,787		-		(637)		20,150
Certificates of deposit/time deposits	249		-		(3)		246
Total marketable securities	$	37,315	$	-	$	(1,026)	$	36,289



	December 31, 2022
(in thousands)	Cost		Unrealized Gains		Unrealized Losses		Fair Value
U.S. municipal securities	$	15,574	$	-	$	(417)	$	15,157
Corporate debt securities	9,578		-		(205)		9,373
U.S. government agency securities	25,275		-		(750)		24,525
Certificates of deposit/time deposits	939		-		(7)		932
Total marketable securities	$	51,366	$	-	$	(1,379)	$	49,987

Fair values for the corporate debt securities are primarily determined based on quoted market prices (Level 1). Fair values for the U.S. municipal securities, U.S. government agency securities, certificates of deposit and U.S. treasury securities are primarily determined using dealer quotes or quoted market prices for similar securities (Level 2).

Classification of marketable securities as current or non-current is based upon the security’s maturity date as of the date of these financial statements.



(in thousands)	June 30, 2023
Due in one year or less	$	19,945
Due after one year through five years	16,344
Total marketable securities	$	36,289

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statements of Operations:
Revenue	$ 122,265	$ 126,902	$ 248,124	$ 251,070
Cost of revenue	69,142	69,480	141,225	137,844
Gross profit	53,123	57,422	106,899	113,226
Operating expenses
Marketing and sales	21,730	21,055	44,181	41,641
Research and development	9,865	9,450	20,542	20,007
General and administrative	15,822	16,522	32,655	33,293
Closure of Japan business	98	5,194	164	5,194
Total operating expenses	47,515	52,221	97,542	100,135
Income from operations	5,608	5,201	9,357	13,091
Other (loss) income, net	(3,368)	1	(2,078)	(299)
Income before income taxes	2,240	5,202	7,279	12,792
Provision for income taxes	2,623	2,645	5,003	5,140
Net (loss) income	$ (383)	$ 2,557	$ 2,276	$ 7,652
Net (loss) income per share:
Basic (in dollars per share)	$ (0.01)	$ 0.09	$ 0.09	$ 0.28
Diluted (in dollars per share)	$ (0.01)	$ 0.09	$ 0.09	$ 0.28
Shares used to compute net (loss) income per share:
Basic (in shares)	26,210,478	27,530,739	26,414,467	27,515,583
Diluted (in shares)	26,210,478	27,536,823	26,445,427	27,524,019
Comprehensive Income (Loss) (net of tax)
Comprehensive income (loss)	$ 3,890	$ (11,287)	$ 7,410	$ (11,680)

Accumulated Other Comprehensive Income (Loss) - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Foreign currency translation adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified from accumulated other comprehensive loss	$ 3,906	$ 0	$ 3,906	$ 0

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Inventory (Tables)

6 Months Ended

Jun. 30, 2023

Inventory Disclosure [Abstract]

Schedule of Inventory, Current

The Company’s inventory consisted of the following as of the dates indicated:



(in thousands)	June 30, 2023		December 31, 2022
Total inventory	$	14,855	$	13,965
Allowance for obsolescence	(544)		(387)
Inventory, net of allowance	$	14,311	$	13,578

Segment Reporting - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Segment Reporting Information [Line Items]
Total revenue	$ 122,265	$ 126,902	$ 248,124	$ 251,070
Injection Molding
Segment Reporting Information [Line Items]
Total revenue	48,819	53,355	100,767	106,753
CNC Machining
Segment Reporting Information [Line Items]
Total revenue	48,297	48,222	96,401	94,320
3D Printing
Segment Reporting Information [Line Items]
Total revenue	21,005	19,963	42,330	39,635
Sheet Metal
Segment Reporting Information [Line Items]
Total revenue	3,939	5,160	8,187	9,847
Other Revenue
Segment Reporting Information [Line Items]
Total revenue	$ 205	$ 202	$ 439	$ 515

- Definition

Amount, including tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value-added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 924
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479941/924-10-S99-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 30
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-30

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-4

+ Details

Stock-Based Compensation - Option Activity (Details)	6 Months Ended
Stock-Based Compensation - Option Activity (Details)	Jun. 30, 2023 $ / shares shares
Stock Options
Options outstanding, beginning balance (in shares) \| shares	263,992
Granted (in shares) \| shares	186,804
Exercised (in shares) \| shares	0
Forfeited (in shares) \| shares	(35,702)
Expired (in shares) \| shares	(15,848)
Options outstanding, ending balance (in shares) \| shares	399,246
Weighted- Average Exercise Price
Options outstanding, beginning balance, weighted-average exercise price (in dollars per share) \| $ / shares	$ 79.07
Granted, weighted-average exercise price (in dollars per share) \| $ / shares	33.36
Exercised, weighted-average exercise price (in dollars per share) \| $ / shares	0
Forfeited, weighted-average exercise price (in dollars per share) \| $ / shares	63.70
Expired, weighted-average exercise price (in dollars per share) \| $ / shares	55.67
Options outstanding, ending balance, weighted-average exercise price (in dollars per share) \| $ / shares	$ 59.99
Additional Disclosures
Option exercisable (in shares) \| shares	125,050
Options exercisable, weighted-average exercise price (in dollars per share) \| $ / shares	$ 90.81

Stock-Based Compensation - Weighted Average Assumptions (Details)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Employee Stock Purchase Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected life (years)	6 years	6 years
Expected dividend yield	0.00%	0.00%
Stock Options
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Risk-free interest rate		1.94%
Expected life (years)		6 years 3 months
Expected volatility		45.95%
Expected dividend yield	0.00%	0.00%
Performance Shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Risk-free interest rate	4.35%	1.76%
Expected life (years)	2 years 10 months 17 days	2 years 10 months 13 days
Expected volatility	58.00%	53.50%
Expected dividend yield	0.00%	0.00%
Minimum \| Employee Stock Purchase Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Risk-free interest rate	4.60%	0.17%
Expected volatility	47.38%	47.05%
Minimum \| Stock Options
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Risk-free interest rate	3.90%
Expected life (years)	2 years
Expected volatility	49.23%
Maximum \| Employee Stock Purchase Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Risk-free interest rate	4.82%	2.06%
Expected volatility	67.84%	53.44%
Maximum \| Stock Options
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Risk-free interest rate	4.55%
Expected life (years)	6 years 3 months
Expected volatility	55.92%

Goodwill and Other Intangible Assets - Schedule of Intangible Assets Other Than Goodwill (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Acquired Finite-Lived Intangible Assets [Line Items]
Gross	$ 53,803	$ 53,588
Accumulated Amortization	(25,450)	(22,338)
Net	28,353	31,250
Marketing assets
Acquired Finite-Lived Intangible Assets [Line Items]
Gross	930	930
Accumulated Amortization	(852)	(806)
Net	$ 78	124
Useful Life (in years)	10 years
Weighted Average Useful Life Remaining (in years)	9 months 18 days
Non-compete agreement
Acquired Finite-Lived Intangible Assets [Line Items]
Gross	$ 832	828
Accumulated Amortization	(545)	(487)
Net	$ 287	341
Weighted Average Useful Life Remaining (in years)	1 year 9 months 18 days
Non-compete agreement \| Minimum
Acquired Finite-Lived Intangible Assets [Line Items]
Useful Life (in years)	2 years
Non-compete agreement \| Maximum
Acquired Finite-Lived Intangible Assets [Line Items]
Useful Life (in years)	5 years
Software technology
Acquired Finite-Lived Intangible Assets [Line Items]
Gross	$ 13,229	13,229
Accumulated Amortization	(7,068)	(6,383)
Net	$ 6,161	6,846
Useful Life (in years)	10 years
Weighted Average Useful Life Remaining (in years)	4 years 6 months
Software platform
Acquired Finite-Lived Intangible Assets [Line Items]
Gross	$ 26,247	26,054
Accumulated Amortization	(5,510)	(4,337)
Net	$ 20,737	21,717
Useful Life (in years)	12 years
Weighted Average Useful Life Remaining (in years)	9 years 7 months 6 days
Tradenames
Acquired Finite-Lived Intangible Assets [Line Items]
Gross	$ 352	350
Accumulated Amortization	(286)	(227)
Net	$ 66	123
Useful Life (in years)	3 years
Weighted Average Useful Life Remaining (in years)	7 months 6 days
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Gross	$ 12,213	12,197
Accumulated Amortization	(11,189)	(10,098)
Net	$ 1,024	$ 2,099
Weighted Average Useful Life Remaining (in years)	4 months 24 days
Customer relationships \| Minimum
Acquired Finite-Lived Intangible Assets [Line Items]
Useful Life (in years)	3 years
Customer relationships \| Maximum
Acquired Finite-Lived Intangible Assets [Line Items]
Useful Life (in years)	9 years

Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Revenue from External Customers by Geographic Areas

Revenue and income from operations by reportable segment for the three and six months ended June 30, 2023 and 2022 were as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2023		2022		2023		2022
Revenue:
United States	$	96,321	$	100,655	$	194,067	$	196,151
Europe	25,944		23,391		54,057		47,977
Japan	-		2,856		-		6,942
Total revenue	$	122,265	$	126,902	$	248,124	$	251,070

Income from Operations by Geographic Area



	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2023		2022		2023		2022
Income (Loss) from Operations:
United States	$	22,053	$	26,168	$	42,534	$	48,691
Europe	(3,380)		(2,249)		(5,863)		(3,928)
Corporate Unallocated and Japan	(13,065)		(18,718)		(27,314)		(31,672)
Total Income from Operations	$	5,608	$	5,201	$	9,357	$	13,091

Long-Lived Assets by Geographic Areas

Total long-lived assets at June 30, 2023 and December 31, 2022 were as follows:



(in thousands)	June 30, 2023		December 31, 2022
Total long-lived assets:
United States	$	194,656	$	203,816
Europe	53,958		53,835
Japan	-		134
Total Long-lived Assets	$	248,614	$	257,785

Disaggregation of Revenue

Revenue by product line for the three and six months ended June 30, 2023 and 2022 were as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2023		2022		2023		2022
Revenue:
Injection Molding	$	48,819	$	53,355	$	100,767	$	106,753
CNC Machining	48,297		48,222		96,401		94,320
3D Printing	21,005		19,963		42,330		39,635
Sheet Metal	3,939		5,160		8,187		9,847
Other Revenue	205		202		439		515
Total Revenue	$	122,265	$	126,902	$	248,124	$	251,070

Marketable Securities - Short-Term and Long-Term Marketable Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Debt Securities, Available-for-Sale [Line Items]
Cost	$ 37,315	$ 51,366
Unrealized Gains	0	0
Unrealized Losses	(1,026)	(1,379)
Fair Value	36,289	49,987
U.S. municipal securities
Debt Securities, Available-for-Sale [Line Items]
Cost	12,229	15,574
Unrealized Gains	0	0
Unrealized Losses	(293)	(417)
Fair Value	11,936	15,157
Corporate debt securities
Debt Securities, Available-for-Sale [Line Items]
Cost	4,050	9,578
Unrealized Gains	0	0
Unrealized Losses	(93)	(205)
Fair Value	3,957	9,373
U.S. government agency securities
Debt Securities, Available-for-Sale [Line Items]
Cost	20,787	25,275
Unrealized Gains	0	0
Unrealized Losses	(637)	(750)
Fair Value	20,150	24,525
Certificates of deposit/time deposits
Debt Securities, Available-for-Sale [Line Items]
Cost	249	939
Unrealized Gains	0	0
Unrealized Losses	(3)	(7)
Fair Value	$ 246	$ 932

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (aa)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (aaa)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

+ Details

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents	$ 66,493	$ 56,558
Short-term marketable securities	19,945	23,568
Accounts receivable, net of allowance for doubtful accounts of $2,209 and $1,706 as of June 30, 2023, and December 31, 2022, respectively	75,034	76,225
Inventory	14,311	13,578
Income taxes receivable	868	4,042
Prepaid expenses and other current assets	8,501	12,597
Total current assets	185,152	186,568
Property and equipment, net	248,614	257,785
Goodwill	273,991	273,991
Other intangible assets, net	28,353	31,250
Long-term marketable securities	16,344	26,419
Operating lease assets	3,084	3,844
Finance lease assets	16,934	17,532
Other long-term assets	4,738	4,779
Total assets	777,210	802,168
Current liabilities
Accounts payable	16,474	17,356
Accrued compensation	12,486	12,743
Accrued liabilities and other	19,155	22,384
Current operating lease liabilities	1,209	1,561
Current finance lease liabilities	16,549	17,537
Income taxes payable	348	0
Total current liabilities	66,221	71,581
Long-term operating lease liabilities	1,833	2,255
Long-term finance lease liabilities	745	0
Long-term deferred tax liabilities	20,790	26,322
Other long-term liabilities	4,936	4,362
Total liabilities	94,525	104,520
Shareholders' equity
Preferred stock, $0.001 par value, authorized 10,000,000 shares; issued and outstanding 0 shares as of each of June 30, 2023, and December 31, 2022	0	0
Common stock, $0.001 par value, authorized 150,000,000 shares; issued and outstanding 26,095,434 and 26,888,425 shares as of June 30, 2023, and December 31, 2022, respectively	26	27
Additional paid-in capital	464,950	473,740
Retained earnings	246,930	258,236
Accumulated other comprehensive loss	(29,221)	(34,355)
Total shareholders' equity	682,685	697,648
Total liabilities and shareholders' equity	$ 777,210	$ 802,168

Inventory

6 Months Ended

Jun. 30, 2023

Inventory Disclosure [Abstract]

Inventory

Inventory Inventory consists primarily of raw materials, which are recorded at the lower of cost and net realizable value using the standard cost method, which approximates first-in, first-out (FIFO) cost. The Company periodically reviews its inventory for slow-moving, damaged and discontinued items and provides allowances to reduce such items identified to their recoverable amounts.

The Company’s inventory consisted of the following as of the dates indicated:



(in thousands)	June 30, 2023		December 31, 2022
Total inventory	$	14,855	$	13,965
Allowance for obsolescence	(544)		(387)
Inventory, net of allowance	$	14,311	$	13,578

Net (Loss) Income per Common Share (Tables)

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The table below sets forth the computation of basic and diluted net (loss) income per share:



	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands, except share and per share amounts)	2023		2022		2023		2022
Net (loss) income	$	(383)	$	2,557	$	2,276	$	7,652

Basic - weighted-average shares outstanding:	26,210,478		27,530,739		26,414,467		27,515,583
Effect of dilutive securities:
Employee stock options and other1	—		6,084		30,960		8,436
Diluted - weighted-average shares outstanding:	26,210,478		27,536,823		26,445,427		27,524,019
Net (loss) income per share:
Basic	$	(0.01)	$	0.09	$	0.09	$	0.28
Diluted	$	(0.01)	$	0.09	$	0.09	$	0.28


1 For the three months ended June 30, 2023, 14,084 of dilutive securities for employee stock options and other were not included in the diluted weighted average shares outstanding due to the net loss for the three months ended June 30, 2023.

Segment Reporting - Income From Operation by Geographic Areas (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Segment Reporting Information [Line Items]
Total Income from Operations	$ 5,608	$ 5,201	$ 9,357	$ 13,091
Operating Segments
Segment Reporting Information [Line Items]
Total Income from Operations	5,608	5,201	9,357	13,091
Operating Segments \| United States
Segment Reporting Information [Line Items]
Total Income from Operations	22,053	26,168	42,534	48,691
Operating Segments \| Europe
Segment Reporting Information [Line Items]
Total Income from Operations	(3,380)	(2,249)	(5,863)	(3,928)
Operating Segments \| Corporate Unallocated and Japan
Segment Reporting Information [Line Items]
Total Income from Operations	$ (13,065)	$ (18,718)	$ (27,314)	$ (31,672)

Net (Loss) Income per Common Share - Narrative (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Earnings Per Share [Abstract]
Anti-dilutive options excluded from calculation of diluted weighted average shares outstanding (in shares)	380,848	220,776	407,119	208,840

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 2,623	$ 2,645	$ 5,003	$ 5,140
Effective income tax rate (in percent)	117.10%	50.80%	68.70%	40.20%
Effective income tax rate, increase (decrease) during period (in percent)	66.30%		28.50%
Federal statutory rate (in percent)	21.00%		21.00%
Unrecognized tax benefits	$ 3,600		$ 3,600		$ 3,200

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2023

Regulated Operations [Abstract]

Accumulated Other Comprehensive Income (Loss)

Other comprehensive income (loss) is comprised of foreign currency translation adjustments and net unrealized gains (losses) on investments in securities. During the three and six months ended June 30, 2023 we recognized a $3.9 million foreign currency translation loss from the substantial completion on the closure of our Japan business.

The following table presents the changes in accumulated other comprehensive income (loss) balances during the three and six months ended June 30, 2023 and 2022:



	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2023		2022		2023		2022

Balance at beginning of period	$	(33,494)	$	(22,305)	$	(34,355)	$	(16,817)
Foreign currency translation adjustments
Other comprehensive income (loss) before reclassifications	348		(13,515)		875		(18,487)
Amounts reclassified from accumulated other comprehensive loss	3,906		-		3,906		-
Net current-period other comprehensive income (loss)	4,254		(13,515)		4,781		(18,487)
Net unrealized gains (losses) on investments in securities
Other comprehensive income (loss) before reclassifications	19		(329)		353		(845)
Amounts reclassified from accumulated other comprehensive loss	-		-		-		-
Net current-period other comprehensive income (loss)	19		(329)		353		(845)
Balance at end of period	$	(29,221)	$	(36,149)	$	(29,221)	$	(36,149)

Segment Reporting - Revenue by Geographic Areas (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Segment Reporting Information [Line Items]
Total revenue	$ 122,265	$ 126,902	$ 248,124	$ 251,070
Operating Segments
Segment Reporting Information [Line Items]
Total revenue	122,265	126,902	248,124	251,070
Operating Segments \| United States
Segment Reporting Information [Line Items]
Total revenue	96,321	100,655	194,067	196,151
Operating Segments \| Europe
Segment Reporting Information [Line Items]
Total revenue	25,944	23,391	54,057	47,977
Operating Segments \| Japan
Segment Reporting Information [Line Items]
Total revenue	$ 0	$ 2,856	$ 0	$ 6,942

- Definition

+ References

+ Details

Inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Total inventory	$ 14,855	$ 13,965
Allowance for obsolescence	(544)	(387)
Inventory, net of allowance	$ 14,311	$ 13,578

Net (Loss) Income per Common Share

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Net (Loss) Income per Common Share

Net (Loss) Income per Common ShareBasic net (loss) income per share is computed based on the weighted-average number of common shares outstanding. Diluted net (loss) income per share is computed based on the weighted-average number of common shares outstanding, increased by the number of additional shares that would have been outstanding had potentially dilutive common shares been issued and reduced by the number of shares the Company could have repurchased from the proceeds from issuance of the potentially dilutive shares. Potentially dilutive shares of common stock include stock options and other stock-based awards granted under stock-based compensation plans and shares committed to be purchased under the employee stock purchase plan. Performance stock units are excluded from the calculation of dilutive potential common shares until the performance conditions have been satisfied. Anti-dilutive options were excluded from the calculation of diluted weighted average shares outstanding and were 380,848 and 220,776 for the three months ended June 30, 2023 and 2022, respectively, and 407,119 and 208,840 for the six months ended June 30, 2023 and 2022, respectively.

The table below sets forth the computation of basic and diluted net (loss) income per share:



	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands, except share and per share amounts)	2023		2022		2023		2022
Net (loss) income	$	(383)	$	2,557	$	2,276	$	7,652

Basic - weighted-average shares outstanding:	26,210,478		27,530,739		26,414,467		27,515,583
Effect of dilutive securities:
Employee stock options and other1	—		6,084		30,960		8,436
Diluted - weighted-average shares outstanding:	26,210,478		27,536,823		26,445,427		27,524,019
Net (loss) income per share:
Basic	$	(0.01)	$	0.09	$	0.09	$	0.28
Diluted	$	(0.01)	$	0.09	$	0.09	$	0.28


1 For the three months ended June 30, 2023, 14,084 of dilutive securities for employee stock options and other were not included in the diluted weighted average shares outstanding due to the net loss for the three months ended June 30, 2023.

Goodwill and Other Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets

Intangible assets other than goodwill at June 30, 2023 and December 31, 2022 were as follows:



	June 30, 2023						December 31, 2022						Useful Life (in years)	Weighted Average Useful Life Remaining (in years)
(in thousands)	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Intangible assets with finite lives:
Marketing assets	$	930	$	(852)	$	78	$	930	$	(806)	$	124	10.0	0.8
Non-compete agreement	832		(545)		287		828		(487)		341		2.0 - 5.0	1.8
Software technology	13,229		(7,068)		6,161		13,229		(6,383)		6,846		10.0	4.5
Software platform	26,247		(5,510)		20,737		26,054		(4,337)		21,717		12.0	9.6
Tradenames	352		(286)		66		350		(227)		123		3.0	0.6
Customer relationships	12,213		(11,189)		1,024		12,197		(10,098)		2,099		3.0 - 9.0	0.4
Total intangible assets	$	53,803	$	(25,450)	$	28,353	$	53,588	$	(22,338)	$	31,250

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

Estimated aggregated amortization expense based on the current carrying value of the amortizable intangible assets and current exchange rates is as follows:



(in thousands)	Estimated Amortization Expense
Remaining 2023	$	2,894
2024	3,741
2025	3,644
2026	3,542
2027	3,533
Thereafter	10,999
Total estimated amortization expense	$	28,353

Marketable Securities - Maturities of Available-For-Sale Debt Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Debt Securities, Available-for-Sale, Fair Value, Fiscal Year Maturity [Abstract]
Due in one year or less	$ 19,945
Due after one year through five years	16,344
Total marketable securities	$ 36,289	$ 49,987

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Jun. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Accumulated Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2023

Regulated Operations [Abstract]

Comprehensive Income (Loss)

The following table presents the changes in accumulated other comprehensive income (loss) balances during the three and six months ended June 30, 2023 and 2022:



	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2023		2022		2023		2022

Balance at beginning of period	$	(33,494)	$	(22,305)	$	(34,355)	$	(16,817)
Foreign currency translation adjustments
Other comprehensive income (loss) before reclassifications	348		(13,515)		875		(18,487)
Amounts reclassified from accumulated other comprehensive loss	3,906		-		3,906		-
Net current-period other comprehensive income (loss)	4,254		(13,515)		4,781		(18,487)
Net unrealized gains (losses) on investments in securities
Other comprehensive income (loss) before reclassifications	19		(329)		353		(845)
Amounts reclassified from accumulated other comprehensive loss	-		-		-		-
Net current-period other comprehensive income (loss)	19		(329)		353		(845)
Balance at end of period	$	(29,221)	$	(36,149)	$	(29,221)	$	(36,149)

Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Loss
Beginning balance (in shares) at Dec. 31, 2021		27,465,945
Beginning balance at Dec. 31, 2021	$ 828,493	$ 28	$ 468,548	$ 376,734	$ (16,817)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common shares issued on exercise of options and other, net of shares withheld for tax obligations (in shares)		27,716
Common shares issued on exercise of options and other, net of shares withheld for tax obligations	(462)		(462)
Stock-based compensation expense	4,397		4,397
Net (loss) income	5,095			5,095
Other comprehensive income (loss)
Foreign currency translation adjustment	(4,972)				(4,972)
Net unrealized gains (losses) on investments in securities	(516)				(516)
Comprehensive income	(393)
Ending balance (in shares) at Mar. 31, 2022		27,493,661
Ending balance at Mar. 31, 2022	832,035	$ 28	472,483	381,829	(22,305)
Beginning balance (in shares) at Dec. 31, 2021		27,465,945
Beginning balance at Dec. 31, 2021	828,493	$ 28	468,548	376,734	(16,817)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	7,652
Other comprehensive income (loss)
Comprehensive income	(11,680)
Ending balance (in shares) at Jun. 30, 2022		27,503,100
Ending balance at Jun. 30, 2022	820,698	$ 28	475,740	381,079	(36,149)
Beginning balance (in shares) at Mar. 31, 2022		27,493,661
Beginning balance at Mar. 31, 2022	832,035	$ 28	472,483	381,829	(22,305)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common shares issued on exercise of options and other, net of shares withheld for tax obligations (in shares)		122,705
Common shares issued on exercise of options and other, net of shares withheld for tax obligations	1,158		1,158
Stock-based compensation expense	4,031		4,031
Repurchases of common stock and other (in shares)		(113,266)
Repurchases of common stock and other	(5,239)		(1,932)	(3,307)
Net (loss) income	2,557			2,557
Other comprehensive income (loss)
Foreign currency translation adjustment	(13,515)				(13,515)
Net unrealized gains (losses) on investments in securities	(329)				(329)
Comprehensive income	(11,287)
Ending balance (in shares) at Jun. 30, 2022		27,503,100
Ending balance at Jun. 30, 2022	$ 820,698	$ 28	475,740	381,079	(36,149)
Beginning balance (in shares) at Dec. 31, 2022	26,888,425	26,888,425
Beginning balance at Dec. 31, 2022	$ 697,648	$ 27	473,740	258,236	(34,355)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common shares issued on exercise of options and other, net of shares withheld for tax obligations (in shares)		26,798
Common shares issued on exercise of options and other, net of shares withheld for tax obligations	(401)		(401)
Stock-based compensation expense	3,695		3,695
Repurchases of common stock and other (in shares)		(712,500)
Repurchases of common stock and other	(21,325)	$ (1)	(11,849)	(9,475)
Net (loss) income	2,659			2,659
Other comprehensive income (loss)
Foreign currency translation adjustment	527				527
Net unrealized gains (losses) on investments in securities	334				334
Comprehensive income	3,520
Ending balance (in shares) at Mar. 31, 2023		26,202,723
Ending balance at Mar. 31, 2023	$ 683,137	$ 26	465,185	251,420	(33,494)
Beginning balance (in shares) at Dec. 31, 2022	26,888,425	26,888,425
Beginning balance at Dec. 31, 2022	$ 697,648	$ 27	473,740	258,236	(34,355)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	2,276
Other comprehensive income (loss)
Comprehensive income	$ 7,410
Ending balance (in shares) at Jun. 30, 2023	26,095,434	26,095,434
Ending balance at Jun. 30, 2023	$ 682,685	$ 26	464,950	246,930	(29,221)
Beginning balance (in shares) at Mar. 31, 2023		26,202,723
Beginning balance at Mar. 31, 2023	683,137	$ 26	465,185	251,420	(33,494)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common shares issued on exercise of options and other, net of shares withheld for tax obligations (in shares)		169,229
Common shares issued on exercise of options and other, net of shares withheld for tax obligations	962		962
Stock-based compensation expense	3,675		3,675
Repurchases of common stock and other (in shares)		(276,518)
Repurchases of common stock and other	(8,979)		(4,872)	(4,107)
Net (loss) income	(383)			(383)
Other comprehensive income (loss)
Foreign currency translation adjustment	4,254				4,254
Net unrealized gains (losses) on investments in securities	19				19
Comprehensive income	$ 3,890
Ending balance (in shares) at Jun. 30, 2023	26,095,434	26,095,434
Ending balance at Jun. 30, 2023	$ 682,685	$ 26	$ 464,950	$ 246,930	$ (29,221)

Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Share-Based Payment Arrangement, Option, Activity

The following table summarizes stock option activity during the six months ended June 30, 2023:



	Stock Options	Weighted- Average Exercise Price
Options outstanding at December 31, 2022	263,992	$	79.07
Granted	186,804	33.36
Exercised	-	-
Forfeited	(35,702)	63.70
Expired	(15,848)	55.67
Options outstanding at June 30, 2023	399,246	$	59.99

Exercisable at June 30, 2023	125,050	$	90.81

Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions

The following table provides the assumptions used in the Black-Scholes pricing model valuation of options during the six months ended June 30, 2023 and 2022:



	Six Months Ended June 30,
	2023	2022
Risk-free interest rate	3.90% - 4.55%	1.94%
Expected life (years)	2.00 - 6.25	6.25
Expected volatility	49.23% - 55.92%	45.95%
Expected dividend yield	0%	0%

Share-Based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity

The following table summarizes restricted stock activity during the six months ended June 30, 2023:



	Restricted Stock	Weighted- Average Grant Date Fair Value Per Share
Restricted stock at December 31, 2022	478,596	$	70.36
Granted	406,150	32.50
Restrictions lapsed	(135,687)	80.02
Forfeited	(65,821)	70.09
Restricted stock at June 30, 2023	683,238	$	45.88

Schedule of Nonvested Performance-Based Units Activity

The following table summarizes performance stock activity during the six months ended June 30, 2023:



	Performance Stock	Weighted- Average Grant Date Fair Value Per Share
Performance stock at December 31, 2022	35,802	$	77.91
Granted	71,295	57.79
Restrictions lapsed	-	-
Performance change	-	-
Forfeited	-	-
Performance stock at June 30, 2023	107,097	$	74.08

Schedule of Share-based Payment Award, Awards Other Than Stock Options, Valuation Assumptions

The following table provides the assumptions used in the Monte Carlo pricing model valuation of PSUs during the six months ended June 30, 2023 and 2022:



	Six Months Ended June 30,
	2023	2022
Risk-free interest rate	4.35%	1.76%
Expected life (years)	2.88	2.87
Expected volatility	58.00%	53.50%
Expected dividend yield	0%	0%

Schedule of Share-Based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions

The following table presents the assumptions used to estimate the fair value of the ESPP during the six months ended June 30, 2023 and 2022:



	Six Months Ended June 30,
	2023	2022
Risk-free interest rate	4.60 - 4.82%	0.17 - 2.06%
Expected life (months)	6.00	6.00
Expected volatility	47.38 - 67.84%	47.05 - 53.44%
Expected dividend yield	0%	0%

Cover - shares	6 Months Ended
Cover - shares	Jun. 30, 2023	Aug. 01, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	001-35435
Entity Registrant Name	Proto Labs, Inc.
Entity Incorporation, State or Country Code	MN
Entity Tax Identification Number	41-1939628
Entity Address, Address Line One	5540 Pioneer Creek Drive
Entity Address, City or Town	Maple Plain
Entity Address, State or Province	MN
Entity Address, Postal Zip Code	55359
City Area Code	763
Local Phone Number	479-3680
Title of 12(b) Security	Common Stock, Par Value $0.001 Per Share
Trading Symbol	PRLB
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		26,095,434
Entity Central Index Key	0001443669
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Allowance for credit loss, current	$ 2,209	$ 1,706
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized (in shares)	10,000,000	10,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	150,000,000	150,000,000
Common stock, issued (in shares)	26,095,434	26,888,425
Common stock, outstanding (in shares)	26,095,434	26,888,425

Fair Value Measurements - Financial Assets Measured At Fair Value On A Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Financial Assets:
Debt securities, available-for-sale	$ 36,289	$ 49,987
Level 1 \| Fair Value, Recurring
Financial Assets:
Debt securities, available-for-sale	5,457	9,881
Total	71,950	66,439
Level 2 \| Fair Value, Recurring
Financial Assets:
Debt securities, available-for-sale	30,832	40,106
Total	30,832	40,106
Level 3 \| Fair Value, Recurring
Financial Assets:
Debt securities, available-for-sale	0	0
Total	0	0
Cash \| Level 1 \| Fair Value, Recurring
Financial Assets:
Cash and cash equivalents	56,768	38,862
Cash \| Level 2 \| Fair Value, Recurring
Financial Assets:
Cash and cash equivalents	0	0
Cash \| Level 3 \| Fair Value, Recurring
Financial Assets:
Cash and cash equivalents	0	0
Money market mutual fund \| Level 1 \| Fair Value, Recurring
Financial Assets:
Cash and cash equivalents	9,725	17,696
Money market mutual fund \| Level 2 \| Fair Value, Recurring
Financial Assets:
Cash and cash equivalents	0	0
Money market mutual fund \| Level 3 \| Fair Value, Recurring
Financial Assets:
Cash and cash equivalents	$ 0	$ 0

Segment Reporting

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Segment Reporting

The Company’s reportable segments are based on the internal reporting used by the Company’s Chief Executive Officer, who is the chief operating decision maker (CODM), to assess operating performance and make decisions about the allocation of resources. The Corporate Unallocated and Japan category includes non-reportable segments, as well as research and development and general and administrative costs, that the Company does not allocate directly to its operating segments.

Intercompany transactions primarily relate to intercontinental activity and have been eliminated and are excluded from the reported amounts. The difference between income from operations and pre-tax income relates to foreign currency-related gains and losses and interest income on cash balances and investments, which are not allocated to business segments.

Revenue and income from operations by reportable segment for the three and six months ended June 30, 2023 and 2022 were as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2023		2022		2023		2022
Revenue:
United States	$	96,321	$	100,655	$	194,067	$	196,151
Europe	25,944		23,391		54,057		47,977
Japan	-		2,856		-		6,942
Total revenue	$	122,265	$	126,902	$	248,124	$	251,070



	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2023		2022		2023		2022
Income (Loss) from Operations:
United States	$	22,053	$	26,168	$	42,534	$	48,691
Europe	(3,380)		(2,249)		(5,863)		(3,928)
Corporate Unallocated and Japan	(13,065)		(18,718)		(27,314)		(31,672)
Total Income from Operations	$	5,608	$	5,201	$	9,357	$	13,091

Total long-lived assets at June 30, 2023 and December 31, 2022 were as follows:



(in thousands)	June 30, 2023		December 31, 2022
Total long-lived assets:
United States	$	194,656	$	203,816
Europe	53,958		53,835
Japan	-		134
Total Long-lived Assets	$	248,614	$	257,785

Revenue by product line for the three and six months ended June 30, 2023 and 2022 were as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2023		2022		2023		2022
Revenue:
Injection Molding	$	48,819	$	53,355	$	100,767	$	106,753
CNC Machining	48,297		48,222		96,401		94,320
3D Printing	21,005		19,963		42,330		39,635
Sheet Metal	3,939		5,160		8,187		9,847
Other Revenue	205		202		439		515
Total Revenue	$	122,265	$	126,902	$	248,124	$	251,070

- 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/disclosureRef
-Topic 280
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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+ Details