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Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Dec. 31, 2012	Feb. 28, 2013	Jun. 30, 2012
Document and Entity Information [Abstract]
Entity Registrant Name	AtriCure, Inc.
Entity Central Index Key	0001323885
Document Type	10-K
Document Period End Date	Dec. 31, 2012
Amendment Flag	false
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 118.6
Entity Common Stock Shares Outstanding		20,896,517

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Current assets:
Cash and cash equivalents	$ 7,753	$ 9,759
Short-term investments	4,247	4,424
Accounts receivable, less allowance for doubtful accounts of $49 and $37, respectively	9,948	9,514
Inventories	5,718	6,563
Other current assets	873	933
Total current assets	28,539	31,193
Property and equipment, net	3,430	2,351
Intangible assets	32	45
Other assets	430	270
Total Assets	32,431	33,859
Current liabilities:
Accounts payable	5,103	5,270
Accrued liabilities	5,073	3,996
Current maturities of debt and capital leases	2,029	1,543
Total current liabilities	12,205	10,809
Long-term debt and capital leases	6,407	4,926
Other liabilities	1,319	2,509
Total Liabilities	19,931	18,244
Commitments and contingencies (Note 10)
Stockholders' Equity:
Common stock, $.001 par value, 90,000 shares authorized and 16,896 and 16,369 issued and outstanding, respectively	17	16
Additional paid-in capital	123,157	118,853
Accumulated other comprehensive income (loss)	77	(37)
Accumulated deficit	(110,751)	(103,217)
Total Stockholders' Equity	12,500	15,615
Total Liabilities and Stockholders' Equity	$ 32,431	$ 33,859

Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Consolidated Balance Sheets [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 49	$ 37
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	90,000	90,000
Common stock, shares issued	16,896	16,369
Common stock, shares outstanding	16,896	16,369

Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Consolidated Statements of Operations and Comprehensive Loss [Abstract]
Revenue	$ 70,247	$ 64,402	$ 59,006
Cost of revenue	20,233	17,406	13,618
Gross profit	50,014	46,996	45,388
Operating expenses:
Research and development expenses	12,147	11,857	11,531
Selling, general and administrative expenses	45,065	39,870	37,049
Total operating expenses	57,212	51,727	48,580
Loss from operations	(7,198)	(4,731)	(3,192)
Other income (expense):
Interest expense	(802)	(814)	(862)
Interest income	11	16	22
Other	505	104	259
Loss before income tax expense	(7,484)	(5,425)	(3,773)
Income tax expense	50	31	19
Net loss	$ (7,534)	$ (5,456)	$ (3,792)
Basic and diluted net loss per share	$ (0.47)	$ (0.35)	$ (0.25)
Weighted average shares outstanding - basic and diluted	16,190	15,672	15,095
Comprehensive loss:
Unrealized gains (losses) on investments	$ (1)	$ 2	$ (3)
Foreign currency translation adjustment	115	(119)	(61)
Other comprehensive income (loss)	114	(117)	(64)
Net loss	(7,534)	(5,456)	(3,792)
Comprehensive loss	$ (7,420)	$ (5,573)	$ (3,856)

Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)
Beginning Balance at Dec. 31, 2009	$ 17,090	$ 15	$ 110,900	$ (93,969)	$ 144
Beginning Balance, Shares at Dec. 31, 2009		15,353
Issuance of common stock under equity incentive plans	232	$ 0	232
Issuance of common stock under equity incentive plans, Shares		214
Issuance of common stock under employee stock purchase plan	498	$ 0	498
Issuance of common stock under employee stock purchase plan, Shares		97
Non-employee stock option fair market value adjustment	19		19
Share-based employee compensation expense	2,753		2,753
Other comprehensive (loss) income	(64)				(64)
Net loss	(3,792)			(3,792)
Ending Balance at Dec. 31, 2010	16,736	$ 15	114,402	(97,761)	80
Ending Balance, Shares at Dec. 31, 2010		15,664
Issuance of common stock under equity incentive plans	861	$ 1	860
Issuance of common stock under equity incentive plans, Shares		631
Issuance of common stock under employee stock purchase plan	669	$ 0	669
Issuance of common stock under employee stock purchase plan, Shares		74
Non-employee stock option fair market value adjustment	8		8
Share-based employee compensation expense	2,931		2,931
Reclassification of non-employee option liability	(17)		(17)
Other comprehensive (loss) income	(117)				(117)
Net loss	(5,456)			(5,456)
Ending Balance at Dec. 31, 2011	15,615	$ 16	118,853	(103,217)	(37)
Ending Balance, Shares at Dec. 31, 2011		16,369
Issuance of common stock under equity incentive plans	259	$ 1	258
Issuance of common stock under equity incentive plans, Shares		438
Issuance of common stock under employee stock purchase plan	627	$ 0	627
Issuance of common stock under employee stock purchase plan, Shares		89
Share-based employee compensation expense	3,468		3,468
Reclassification of non-employee option liability	(49)		(49)
Other comprehensive (loss) income	114				114
Net loss	(7,534)			(7,534)
Ending Balance at Dec. 31, 2012	$ 12,500	$ 17	$ 123,157	$ (110,751)	$ 77
Ending Balance, Shares at Dec. 31, 2012		16,896

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Cash flows from operating activities:
Net loss	$ (7,534)	$ (5,456)	$ (3,792)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Share-based compensation expense	3,468	2,939	2,772
Depreciation	1,886	1,878	2,164
Amortization of deferred financing costs	100	97	111
Write-off of deferred financing costs and discount on long-term debt		153
Amortization of discount on long-term debt		22	185
Amortization of intangible assets	13	44	199
Amortization/accretion on investments	12	61
(Gain) loss on disposal of equipment	40	56	(37)
Gain on sale of intellectual property		(300)
Change in allowance for doubtful accounts	1	28	(16)
Changes in assets and liabilities:
Accounts receivable	(417)	(199)	(2,300)
Inventories	865	(923)	(850)
Other current assets	57	(17)	525
Accounts payable	(132)	788	893
Accrued liabilities	(97)	(976)	(237)
Other non-current assets and non-current liabilities	(198)	(181)	350
Net cash used in operating activities	(1,936)	(1,986)	(33)
Cash flows from investing activities:
Purchases of equipment	(2,985)	(1,522)	(1,814)
Proceeds from sale of equipment	24	89	5
Purchases of available-for-sale securities	(9,236)	(12,649)	(11,124)
Maturities of available-for-sale securities	9,400	16,506	9,598
Proceeds from sale of intellectual property		300
Net cash (used in) provided by investing activities	(2,797)	2,724	(3,335)
Cash flows from financing activities:
Payments on debt and capital leases	(8,096)	(4,046)	(2,227)
Proceeds from borrowings of debt	10,000	7,500
Payment of debt fees and premium on retirement of debt	(127)	(81)	(68)
Proceeds from issuance of common stock under employee stock purchase plan	627	669	499
Proceeds from stock option exercises	659	1,588	353
Shares repurchased for payment of taxes on stock awards	(401)	(783)
Net cash provided by (used in) financing activities	2,662	4,847	(1,443)
Effect of exchange rate changes on cash	65	(57)	137
Net (decrease) increase in cash and cash equivalents	(2,006)	5,528	(4,674)
Cash and cash equivalents - beginning of period	9,759	4,231	8,905
Cash and cash equivalents - end of period	7,753	9,759	4,231
Supplemental cash flow information:
Cash paid for interest	607	405	418
Cash paid for income taxes	14	30	30
Non-cash investing and financing activities:
Accrued purchases of property and equipment	10	44	62
Receivable related to sale of property and equipment			$ 89
Assets acquired through capital lease	65	$ 60
Capital lease asset early termination	$ 13

Description of Business and Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2012

Description of Business and Summary of Significant Accounting Policies [Abstract]

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1. DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of the Business—AtriCure, Inc. (the “Company” or “AtriCure”) was incorporated in the State of Delaware on October 31, 2000. The Company develops, manufactures and sells devices designed primarily for the surgical ablation of cardiac tissue and devices for the exclusion of the left atrial appendage. The Company sells its products to hospitals and medical centers globally.

Principles of Consolidation—The Consolidated Financial Statements include the accounts of the Company, AtriCure, LLC, the Company’s wholly-owned subsidiary organized in the State of Delaware, and AtriCure Europe B.V., the Company’s wholly-owned subsidiary incorporated in the Netherlands. All intercompany accounts and transactions have been eliminated in consolidation.

Cash and Cash Equivalents—The Company considers highly liquid investments with maturities of three months or less at the date of acquisition as cash equivalents in the accompanying Consolidated Financial Statements.

Investments—The Company places its investments primarily in U.S. Government agencies and securities, corporate bonds and commercial paper. The Company classifies all investments as available-for-sale. Investments with maturities of less than one year are classified as short-term investments. Investments are recorded at fair value, with unrealized gains and losses recorded as a separate component of stockholders’ equity. The Company recognizes gains and losses when these securities are sold using the specific identification method and includes them in interest income or expense in the Consolidated Statements of Operations.

Revenue Recognition—The Company accounts for revenue in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 605, “Revenue Recognition” (“ASC 605”). The Company determines the timing of revenue recognition based upon factors such as passage of title, installation, payment terms and ability to return products. The Company recognizes revenue when all of the following criteria are met: (i) there is persuasive evidence that an arrangement exists; (ii) delivery of the products and/or services has occurred; (iii) the selling price is fixed or determinable; and (iv) collectability is reasonably assured.

Revenue is generated from the sale of the Company’s surgical devices. The Company’s surgical devices consist primarily of individual disposable handpieces and equipment generators. The Company’s customers need the combination of the generator and the handpieces to have a functional system. The Company believes that the generator and handpiece are considered a single unit of accounting under ASC 605 because neither the generator nor handpiece have value to the customer on a standalone basis. Therefore, because the customer needs both the generator and handpiece to have a functional system, revenue is recognized upon the later of delivery of the generator or the handpiece.

Pursuant to the Company’s standard terms of sale, revenue is recognized when title to the goods and risk of loss transfers to customers and there are no remaining obligations that will affect the customers’ final acceptance of the sale. Generally, the Company’s standard terms of sale define the transfer of title and risk of loss to occur upon shipment to the respective customer. The Company generally does not maintain any post-shipping obligations to the recipients of the products. No installation, calibration or testing of this equipment is performed by the Company subsequent to shipment to the customer in order to render it operational.

Product revenue includes shipping and handling revenue of $723, $664 and $657 in 2012, 2011 and 2010, respectively. Cost of freight for shipments made to customers is included in cost of revenue. Sales and other value-added taxes collected from customers and remitted to governmental authorities are excluded from revenue. The Company sells its products primarily through a direct sales force and through AtriCure Europe B.V. Terms of sale are generally consistent for both end-users and distributors except that payment terms are generally net 30 days for end-users and net 60 days for distributors.

Sales Returns and Allowances—The Company maintains a provision for sales returns and allowances to account for potential returns of defective or damaged products, products shipped in error and price adjustments. The Company estimates such provision quarterly based primarily on a specific identification basis, in addition to estimating a general reserve. Increases to the provision result in a reduction of revenue. The provision is included in accrued liabilities in the Consolidated Balance Sheets.

Allowance for Uncollectible Accounts Receivable—The Company evaluates the collectability of accounts receivable in order to determine the appropriate reserve for doubtful accounts. In determining the amount of the reserve, the Company considers aging of account balances, historical credit losses, customer-specific information and other relevant factors. An increase to the allowance for doubtful accounts results in a corresponding increase in expense. The Company reviews accounts receivable and adjusts the allowance based on current circumstances and charges off uncollectible receivables against the allowance when all attempts to collect the receivable have failed. The Company’s history of write-offs against the allowance has not been significant.

Inventories—Inventories are stated at the lower of cost or market using the first-in, first-out cost method (“FIFO”) and consist of raw materials, work in process and finished goods. The Company’s industry is characterized by rapid product development and frequent new product introductions. Uncertain timing of product approvals, variability in product launch strategies and variation in product utilization all impact excess and obsolete inventory. An inventory reserve based on product usage is estimated and recorded quarterly for excess, slow moving and obsolete inventory as well as inventory with a carrying value in excess of its net realizable value. Write-offs are recorded when a product is destroyed. The Company’s history of write-offs against the reserve has not been significant.

Property and Equipment—Property and equipment is stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method of depreciation for financial reporting purposes and applied over the estimated useful lives of the assets. The estimated useful life by major asset category is the following: machinery and equipment is three to seven years, computer and other office equipment is three years, furniture and fixtures is three to seven years and leasehold improvements and equipment leased under a capital lease are the shorter of their useful life or remaining lease term. The Company reassesses useful lives of property and equipment annually, and assets are retired if they are no longer being used. Maintenance and repair costs are expensed as incurred.

Included in property and equipment are generators and other capital equipment (such as the Company’s switchbox units and cryosurgical consoles) that are loaned at no cost to direct customers that use the Company’s disposable products. These generators are depreciated over a period of one to three years, which approximates their useful lives, and such depreciation is included in cost of revenue. The estimated useful lives of this equipment are based on anticipated usage by our customers and the timing and impact of expected new technology rollouts by the Company. To the extent the Company experiences changes in the usage of this equipment or introductions of new technologies, the estimated useful lives of this equipment may change in a future period. Depreciation related to these generators was $1,081, $1,294 and $1,369 in 2012, 2011 and 2010, respectively. As of December 31, 2012 and 2011, the net carrying amount of loaned equipment included in net property and equipment in the Consolidated Balance Sheets was $2,197 and $1,204, respectively.

Impairment of Long-Lived Assets—The Company reviews property and equipment for impairment using its best estimates based on reasonable and supportable assumptions and projections.

Intangible Assets—Intangible assets with determinable useful lives are amortized on a straight-line basis over the estimated periods benefited, which have ranged from four to eight years.

Other Income—Other income consists primarily of foreign currency transaction gains and losses, grant income and non-employee option gains and losses related to the fair market value change for fully vested options outstanding for consultants which are accounted for as free-standing derivatives. The Company recorded foreign currency transaction (losses) gains of ($83), $30 and ($171) for the years ended December 31, 2012, 2011 and 2010, respectively, in connection with settlements of its intercompany balance with its subsidiary.

The Company periodically is awarded grants to support research and development activities. The Company recognizes grant income when the funds are earned. The Company recorded grant income of $409, $52 and $595 during 2012, 2011 and 2010, respectively.

The Company has historically issued stock options to non-employee consultants as a form of compensation for services provided to the Company. Because the non-employee options require settlement by the Company’s delivery of registered shares and because the tax withholding provisions in the awards allow the options to be partially net-cash settled, these options, when vested, are no longer eligible for equity classification and are, thus, subsequently accounted for as derivative liabilities under FASB ASC 815 until the awards are ultimately either exercised or forfeited. Accordingly, the vested non-employee options are classified as liabilities and remeasured at fair value through earnings at each reporting period. During the years ended December 31, 2012, 2011 and 2010, $179, $23 and $(165), respectively, of income (expense) was recorded as a result of the remeasurement of the fair value of these fully vested stock options.

Income Taxes—Income taxes are computed using the asset and liability method in accordance with FASB ASC 740 “Income Taxes” (“ASC 740”), under which deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities. Deferred taxes are measured using provisions of currently enacted tax laws. A valuation allowance against deferred tax assets is recorded when it is more likely than not that such assets will not be fully realized. Tax credits are accounted for as a reduction of income taxes in the year in which the credit originates.

The Company’s estimate of the valuation allowance for deferred tax assets requires it to make significant estimates and judgments about its future operating results. The Company’s ability to realize the deferred tax assets depends on its future taxable income as well as limitations on their utilization. A deferred tax asset is reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax asset will not be realized prior to its expiration. The projections of the Company’s operating results on which the establishment of a valuation allowance is based involve significant estimates regarding future demand for the Company’s products, competitive conditions, product development efforts, approvals of regulatory agencies and product cost. If actual results differ from these projections, or if the Company’s expectations of future results change, it may be necessary to adjust the valuation allowance. In evaluating whether to record a valuation allowance, the applicable accounting standards deem that the existence of cumulative losses in recent years is a significant piece of objectively verifiable negative evidence that must be overcome by objectively verifiable positive evidence to avoid the need to record a valuation allowance. The Company has recorded a full valuation allowance against its net deferred tax assets as it is more likely than not that the benefit of the deferred tax assets will not be recognized in future periods.

Net Loss Per Share—Basic and diluted net loss per share is computed in accordance with FASB ASC 260 “Earnings Per Share” (“ASC 260”) by dividing the net loss by the weighted average number of common shares outstanding during the period. Since the Company has experienced net losses for all periods presented, net loss per share excludes the effect of 3,676, 2,949 and 3,408 stock options, restricted stock and performance based shares as of December 31, 2012, 2011, and 2010, respectively, because they are anti-dilutive. Therefore, the number of shares calculated for basic net loss per share is also used for the diluted net loss per share calculation.

Comprehensive Loss and Accumulated Other Comprehensive Income (Loss)—In addition to net loss, comprehensive loss includes foreign currency exchange rate adjustments and unrealized gains and losses on investments.

Accumulated other comprehensive income (loss) consisted of the following:


	Unrealized Gains (Losses) on Short-Term and Long-Term Investments			Foreign Currency Translation Adjustment			Accumulated Other Comprehensive Income (Loss)
Balance as of December 31, 2009	$	3		$	141		$	144
Current-period change		(3	)		(61	)		(64	)

Balance as of December 31, 2010		0			80			80
Current-period change		2			(119	)		(117	)

Balance as of December 31, 2011		2			(39	)		(37	)
Current-period change		(1	)		115			114

Balance as of December 31, 2012	$	1		$	76		$	77

Research and Development Costs—Research and development costs are expensed as incurred. These costs include compensation and other internal and external costs associated with the development and research related to new products or concepts, preclinical studies, clinical trials and cost of products used in trials and tests.

Share-Based Employee Compensation—The Company follows FASB ASC 718 “Compensation-Stock Compensation” (“ASC 718”), to record share-based compensation for all employee share-based payment awards, including stock options, restricted stock, performance shares and stock purchases related to an employee stock purchase plan, based on estimated fair values. The Company’s share-based compensation expense recognized under ASC 718 for the years ended December 31, 2012, 2011 and 2010 was $3,468, $2,931and $2,753, respectively, on a before and after tax basis.

FASB ASC 718 requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the Company’s Consolidated Statement of Operations. The expense has been reduced for estimated forfeitures. FASB ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.

The Company estimates the fair value of options on the date of grant using the Black-Scholes option-pricing model (“Black-Scholes model”). The Company’s determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by the Company’s stock price, as well as assumptions regarding a number of highly complex and subjective variables. These variables include but are not limited to the Company’s and the peer group’s expected stock price volatility over the term of the awards and actual and projected employee stock option exercise behaviors. For non-employee options, the fair value at the date of grant is subject to adjustment at each vesting date based upon the fair value of the Company’s common stock. The fair value of our market-based performance option grants is estimated at the date of grant using a Monte-Carlo simulation. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in our Consolidated Statement of Operations. The expense has been reduced for estimated forfeitures.

The Company estimates the fair value of restricted stock and performance share awards based upon the grant date closing market price of the Company’s common stock. The Company’s determination of fair value is affected by the Company’s stock price as well as assumptions regarding the number of shares expected to be granted and, in the case of performance shares, the likelihood that the performance measures will be achieved.

The Company also has an employee stock purchase plan (“ESPP” or the “Plan”) which is available to all eligible employees as defined by the Plan. Under the ESPP, shares of the Company’s common stock may be purchased at a discount. The Company estimates the number of shares to be purchased under the Plan and records compensation expense based upon the fair value of the stock at the beginning of the purchase period using the Black-Scholes model.

The Company has historically issued stock options to non-employee consultants as a form of compensation for services provided to the Company. The Company accounts for the options granted to non-employees prior to their vesting date in accordance with ASC 505-50, “Equity-Based Payments to Non-Employees.” Because these options do not contain specific performance provisions, there is no measurement date of fair value until the options vest. Therefore, the fair value of the options granted and outstanding prior to their vesting date is remeasured each reporting period. During the years ended December 31, 2012, 2011 and 2010, $0, $8 and $19, respectively, of expense was recorded as a result of the remeasurement of these unvested stock options.

Fully vested options to acquire 38 and 34 shares of common stock held by non-employee consultants remained unexercised as of December 31, 2012 and 2011, respectively. A liability of $78 and $208 was included in accrued liabilities in the Consolidated Balance Sheets as of December 31, 2012 and 2011, respectively.

Use of Estimates—The preparation of the financial statements in conformity with GAAP 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 revenue and expense during the reporting period. Actual results could differ from those estimates.

Fair Value Disclosures—The book value of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, short-term investments, short and long-term other assets, accounts payable, accrued expenses, other liabilities and fixed interest rate debt, approximate their fair values. The Company classifies cash as Level 1 within the fair value hierarchy. Accounts receivable, short-term other assets, accounts payable and accrued expenses are also classified as Level 1. The carrying amounts of these assets and liabilities approximate their fair value due to their relatively short-term nature. Other assets and other liabilities are classified as Level 1 within the fair value hierarchy. Cash equivalents and short-term investments are classified as Level 2 within the fair value hierarchy (see Note 3—“Fair Value” for further information). Fixed interest rate debt fair value is determined by calculating the net present value of future debt payments and is classified as Level 2. Significant unobservable inputs with respect to the fair value measurement of the Level 3 non-employee stock options are developed using Company data. Validations of unobservable inputs are performed to the extent the Company has experience. When an input is changed, the Black-Scholes model is updated and the results are analyzed for reasonableness.

- Definition

The entire disclosure for the organization, consolidation and basis of presentation of financial statements disclosure, and significant accounting policies of the reporting entity. May be provided in more than one note to the financial statements, as long as users are provided with an understanding of (1) the significant judgments and assumptions made by an enterprise in determining whether it must consolidate a VIE and/or disclose information about its involvement with a VIE, (2) the nature of restrictions on a consolidated VIE's assets reported by an enterprise in its statement of financial position, including the carrying amounts of such assets, (3) the nature of, and changes in, the risks associated with an enterprise's involvement with the VIE, and (4) how an enterprise's involvement with the VIE affects the enterprise's financial position, financial performance, and cash flows. Describes procedure if disclosures are provided in more than one note to the financial statements.

+ References + Details

Recent Accounting Pronouncements

12 Months Ended

Dec. 31, 2012

Recent Accounting Pronouncements [Abstract]

RECENT ACCOUNTING PRONOUNCEMENTS

2. RECENT ACCOUNTING PRONOUNCEMENTS

In May 2011 the FASB issued Accounting Standards Update (“ASU”) 2011-04, “Fair Value Measurement.” The ASU is the result of joint efforts by the FASB and IASB to develop a single, converged fair value framework, that is, converged guidance on how (not when) to measure fair value and on what disclosures to provide about fair value measurements. While the ASU is largely consistent with existing fair value measurement principles in U.S. GAAP, it expands ASC 820’s existing disclosure requirements for fair value measurements and makes other amendments. Some of the amendments could change how the fair value measurement guidance in ASC 820 is applied. The ASU is effective for interim and annual reporting periods beginning after December 15, 2011. The Company has evaluated the provisions of ASU 2011-04 and has determined that it does not have a material impact on the Company’s fair value disclosures.

In June 2011 the FASB issued new guidance in ASU 2011-05, “Presentation of Comprehensive Income,” which revises the manner in which entities present comprehensive income in their financial statements. This new guidance requires entities to report components of comprehensive income in either (1) a continuous statement of comprehensive income or (2) two separate but consecutive statements. It is effective for interim and annual reporting periods beginning after December 15, 2011. The Company adopted the single continuous statement presentation approach. In December 2011 the FASB issued ASU 2011-12, “Comprehensive Income: Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No.2011-05.” The Company has evaluated the provisions of ASU 2011-05 that were deferred and has determined that they do not have a material impact on the Company’s financial reporting.

- Definition

The entire disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Direct Effects of a Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6510796

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6507316

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6801783&loc=d3e22583-107794

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Indirect Effects of a Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6515603

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.10-01.(b)(6))
-URI http://asc.fasb.org/extlink&oid=6958853&loc=d3e46468-122699

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6801783&loc=d3e22580-107794

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Accounting Change
-URI http://asc.fasb.org/extlink&oid=6503790

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6801783&loc=d3e22499-107794

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Retrospective Application
-URI http://asc.fasb.org/extlink&oid=6523989

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
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-Section 45
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6372559&loc=d3e725-108305

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-Name Accounting Standards Codification
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-Paragraph 13
-URI http://asc.fasb.org/extlink&oid=6372559&loc=d3e765-108305

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 01
-Paragraph b
-Subparagraph 6
-Article 10

+ Details

Fair Value

12 Months Ended

Dec. 31, 2012

Fair Value [Abstract]

FAIR VALUE

3. FAIR VALUE

FASB ASC 820, “Fair Value Measurements and Disclosures,” (“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. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following:

•

Level 1—Quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. The valuation under this approach does not entail a significant degree of judgment.

•

Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, 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. The valuation technique for the Company’s Level 2 assets is based on quoted market prices for similar assets from observable pricing sources at the reporting date.

•

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. Unobservable inputs shall be used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. The fair value of the Company’s Level 3 derivatives are estimated on the grant date using the Black-Scholes model and they are revalued at the end of each reporting period using the Black-Scholes model.

In accordance with ASC 820, the following table represents the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2012:


	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)		Total
Assets:
Money market funds	$	—	$	5,261	$	—	$	5,261
Commercial paper		—		3,247		—		3,247
U.S. government agencies and securities		1,000		—		—		1,000
Corporate bonds		—		—		—		—

Total assets	$	1,000	$	8,508	$	—	$	9,508

Liabilities:
Derivative instruments	$	—	$	—	$	78	$	78

Total liabilities	$	—	$	—	$	78	$	78

There were no changes in the levels of financial assets and liabilities during the twelve months ended December 31, 2012.


	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)		Total
Assets:
Money market funds	$	—	$	7,417	$	—	$	7,417
Commercial paper		—		400		—		400
U.S. government agencies and securities		2,507		—		—		2,507
Corporate bonds		—		1,517		—		1,517

Total assets	$	2,507	$	9,334	$	—	$	11,841

Liabilities:
Derivative instruments	$	—	$	—	$	208	$	208

Total liabilities	$	—	$	—	$	208	$	208

The fair value of the Level 3 liabilities is estimated using the Black-Scholes model including the following assumptions:


	As of December 31, 2012	As of December 31, 2011
Risk-free interest rate	0.23% - 0.74%	0.12% - 0.86%
Expected life of option (years)	1.75 - 5.10	0.97 - 5.11
Expected volatility of stock	70.00%	71.00%
Dividend yield	0.00%	0.00%

The Company has historically issued stock options to non-employee consultants as a form of compensation for services provided to the Company. When these non-employee options fully vest, the awards no longer fall within the scope of ASC 505-50. Because the options require settlement by the Company’s delivery of registered shares and because the tax withholding provisions in the awards allow the options to be partially net-cash settled, these vested options are no longer eligible for equity classification and are accounted for as derivative liabilities under FASB ASC 815 (“Derivatives and Hedging”) until the awards are ultimately either exercised or forfeited. Accordingly, the vested non-employee options are classified as liabilities and remeasured at fair value through earnings at each reporting period. In calculating the fair value of the options, they are estimated on the grant date using the Black-Scholes model subject to change in stock price utilizing assumptions of risk-free interest rate, contractual life of option, expected volatility, weighted average volatility and dividend yield. Due to the lack of certain observable market quotes the Company utilizes valuation models that rely on some Level 3 inputs. Specifically, during 2010, the Company’s estimate of volatility was weighted 75% and 25% between the Company’s implied volatility and the implied volatility of a group of comparable companies, respectively. Beginning January 1, 2011, the Company’s estimate of volatility was based solely on the Company’s trading history.

The following table represents the company’s Level 3 fair value measurements using significant other unobservable inputs for derivative instruments as of December 31:


	2012			2011			2010
Beginning Balance—January 1	$	208		$	268		$	180
Total gains/losses (realized/unrealized) included in earnings		(179	)		(23	)		165
Purchases (exercises)		(50	)		(55	)		(77	)
Reclassification from equity to liability when fully vested		99			18			—

Ending Balance—December 31	$	78		$	208		$	268

Gains (losses) included in earnings (or changes in net assets attributable to the change in unrealized gains/losses relating to assets held at reporting date)	$	179		$	23		$	(165	)

- 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

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
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-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13537-108611

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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-Section 50
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-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612

Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-SubTopic 10
-Section 50
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13504-108611

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13433-108611

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15B
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 44A, 44B
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 17-22, 27, 28
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15A
-Subparagraph a-d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15C, 15D
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 32, 33, 34
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 3, 10, 14, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Investments

12 Months Ended

Dec. 31, 2012

Investments [Abstract]

INVESTMENTS

4. INVESTMENTS

As of December 31, 2012 the Company had no long-term investments. Short-term investments as of December 31, 2012 consisted of the following:


	Cost Basis		Unrealized Gains		Fair Value
U.S. Government agencies and securities	$	999	$	1	$	1,000
Commercial paper		3,247		0		3,247

Total	$	4,246	$	1	$	4,247

Money market funds are included in cash and cash equivalents and not included in investments.

As of December 31, 2011, the Company had no long-term investments. Short-term investments as of December 31, 2011 consisted of the following:


	Cost Basis		Unrealized Gains (Losses)		Fair Value
U.S. Government agencies and securities	$	2,506	$	1	$	2,507
Commercial paper		400		0		400
Corporate bonds		1,516		1		1,517

Total	$	4,422	$	2	$	4,424

The Company has not experienced any significant realized gains or losses on its investments in the periods presented in the Consolidated Statements of Operations.

- Definition

The entire disclosure for investments in certain debt and equity securities.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-Glossary Debt Security
-URI http://asc.fasb.org/extlink&oid=6509901

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6379141&loc=d3e15032-111544

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27290-111563

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-Glossary Equity Security
-URI http://asc.fasb.org/extlink&oid=6511694

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27232-111563

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
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-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
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-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27357-111563

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
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-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27161-111563

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27405-111563

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 3, 19, 20, 21, 22, 137
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Intangible Assets

12 Months Ended

Dec. 31, 2012

Intangible Assets [Abstract]

INTANGIBLE ASSETS

5. INTANGIBLE ASSETS

Intangible assets with definite lives are amortized over their estimated useful lives. The following table provides a summary of the Company’s intangible assets with definite lives:


	Proprietary Manufacturing Technology			Non-Compete Agreement			Trade Name			Total
Net carrying amount as of December 31, 2009	$	131		$	70		$	87		$	288
Amortization		(131	)		(13	)		(55	)		(199	)

Net carrying amount as of December 31, 2010		—			57			32			89
Amortization		—			(12	)		(32	)		(44	)

Net carrying amount as of December 31, 2011		—			45			—			45
Amortization		—			(13	)		—			(13	)

Net carrying amount as of December 31, 2012	$	—		$	32		$	—		$	32

Amortizable intangible assets are being amortized over eight years for a non-compete arrangement. Trade name usage and proprietary manufacturing technology intangible assets were amortized over four and five year periods, respectively. For the years ended December 31, 2012, 2011 and 2010, amortization expense related to intangible assets with definite lives was $13, $44 and $199, respectively.

Future amortization expense related to intangible assets with definite lives is projected as follows:


Year	Amortization
2013	$	13
2014		12
2015		7

Total	$	32

In December 2011 the Company entered into a patent purchase agreement with Nu Energy Solutions LLC in which it received proceeds of $300 in connection with the sale of certain intellectual property. Pursuant to the agreement, the Company agreed to sell its Bipolar Tissue Grasping Apparatus and Tissue Welding Method patent. The Company recorded the gain on sale of $300 in research and development expenses in the Consolidated Statements of Operations.

Inventories

12 Months Ended

Dec. 31, 2012

Inventories [Abstract]

INVENTORIES

6. INVENTORIES

Inventories consisted of the following at December 31:


	2012		2011
Raw materials	$	3,066	$	3,233
Work in process		675		509
Finished goods		1,977		2,821

Inventories	$	5,718	$	6,563

Property and Equipment

12 Months Ended

Dec. 31, 2012

Property and Equipment [Abstract]

PROPERTY AND EQUIPMENT

7. PROPERTY AND EQUIPMENT

Property and equipment consisted of the following at December 31:


	2012			2011
Machinery, equipment and vehicles	$	7,489		$	6,424
Computer and other office equipment		1,538			1,236
Furniture and fixtures		212			347
Leasehold improvements		165			150
Equipment under capital leases		226			267
Construction in progress		68			207

Total		9,698			8,631
Less accumulated depreciation		(6,268	)		(6,280	)

Property and equipment, net	$	3,430		$	2,351

Property and equipment depreciation expense was $1,886, $1,878 and $2,164 for the years ended December 31, 2012, 2011 and 2010, respectively.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References + Details

Accrued Liabilities

12 Months Ended

Dec. 31, 2012

Accrued Liabilities [Abstract]

ACCRUED LIABILITIES

8. ACCRUED LIABILITIES

Accrued liabilities consisted of the following at December 31:


	2012		2011
Accrued commissions	$	1,464	$	1,297
Accrued settlement reserve (current portion)		1,120		704
Accrued bonus		487		162
Other accrued liabilities		483		417
Accrued taxes and value-added taxes payable		366		449
Accrued vacation		349		353
Accrued severance		224		16
Accrued payroll		153		167
Withheld FICA		126		105
Accrued royalty		118		78
Sales/returns allowance—trade		105		40
Accrued non-employee stock options		78		208

Total	$	5,073	$	3,996

Indebtedness

12 Months Ended

Dec. 31, 2012

Indebtedness [Abstract]

INDEBTEDNESS

9. INDEBTEDNESS

Long-term debt and capital leases consisted of the following at December 31:


	2012			2011
Credit facility	$	8,333		$	6,375
Capital leases		103			94

Total debt and capital leases		8,436			6,469
Less: Current maturities		(2,029	)		(1,543	)

Total long-term debt and capital leases	$	6,407		$	4,926

The Company has had a debt agreement with Silicon Valley Bank (“SVB”) which includes a term loan and revolving credit facility since May 1, 2009. SVB received a warrant to purchase shares of the Company’s common stock in connection with the term loan in the original agreement. The agreement was modified in November 2009 and March 2010 to amend, among other things, the financial covenants in the agreement and waive a compliance violation which occurred during February 2010. The agreement was amended again in September 2010 in an Amended and Restated Loan and Security Agreement with SVB and an Export-Import Bank Loan and Security Agreement (collectively, “Amended Agreement”) which increased the credit facility to approximately $14,000 and increased the Company’s borrowing capacity under the revolving loan facility. The Amended Agreement was to mature on April 30, 2012 and was secured by all of the Company’s assets, including intellectual property.

On March 15, 2011 the Company and SVB entered into a First Loan Modification Agreement (the “First Loan Modification Agreement”) and an Export-Import Bank First Loan Modification Agreement (the “First Ex-Im Agreement” and, collectively with the First Loan Modification Agreement, the “ First Modification Agreements”) which set forth certain amendments to the Company’s credit facility with SVB. The First Loan Modification Agreement provided for a new $7,500 term loan. The proceeds from the term loan were used to repay the amount outstanding under the existing SVB term loan of $2,500. The balance was invested in short-term investments. The new term loan has a five-year term, and principal payments in the amount of $125, together with accrued interest, are due and payable monthly. The modified term loan accrues interest at a fixed rate of 6.75%.

The First Modification Agreements also provided for a two-year extension of the maturity date of the existing revolving credit facility from April 30, 2012 to April 30, 2014. The applicable borrowing rate was reduced to 0.25% to 1.25% above the prime rate. The maximum borrowing amount under the revolving facility remained at $10,000.

On February 2, 2012 the Company and SVB entered into a Second Loan Modification Agreement (the “Second Loan Modification Agreement”) and an Export-Import Bank Second Loan Modification Agreement (the “Second Ex-Im Agreement” and, collectively with the Second Loan Modification Agreement, the “Second Modification Agreements”) which set forth certain amendments to the Company’s credit facility with SVB. The Second Modification Agreements provided for a new $10,000 term loan in addition to the $10,000 revolving loan. The proceeds from the term loan were used to repay the amount outstanding under the existing SVB term loan of $6,125. The balance was invested in cash and cash equivalents and short-term investments. The new term loan has a five year term, and principal payments in the amount of $167, together with accrued interest, are due and payable monthly. The modified term loan accrues interest at a fixed rate of 6.75%.

The Second Modification Agreements also provided for a change to a Liquidity Ratio covenant to replace the existing Adjusted Quick Ratio covenant. The applicable borrowing rate on the revolving facility is 0.25% to 1.25% above the prime rate, as determined by the Liquidity Ratio.

The Amended Agreement, as modified, contains covenants that include, among others, covenants that limit the Company’s and its subsidiaries’ ability to dispose of assets, enter into mergers or acquisitions, incur indebtedness, incur liens, pay dividends or make distributions on the Company’s capital stock, make investments or loans, and enter into certain affiliate transactions, in each case subject to customary exceptions for a credit facility of this size and type. As a result, the Company has not declared or paid any dividends on its capital stock and expects to retain future earnings, if any, for use in the operation and expansion of the business and does not anticipate paying any cash dividends in the foreseeable future. Additional covenants apply when the Company has outstanding borrowings under the revolving loan facility or when the Company achieves specific covenant milestones. Financial covenants under the credit facility, as amended, include a minimum EBITDA, a limitation on capital expenditures and a minimum adjusted quick ratio and affect the Company’s borrowing availability under the revolving credit facility. Further, a minimum fixed charge ratio applies when the Company achieves specific covenant milestones. The occurrence of an event of default could result in an increase to the applicable interest rate by 3.0%, an acceleration of all obligations under the Amended Agreement, an obligation of the Company to repay all obligations in full and a right by SVB to exercise all remedies available to it under the Amended Agreement and related agreements including the Guaranty and Security Agreement. As of and for the period ended December 31, 2012, the Company was in compliance with all of the financial covenants of the amended and modified credit facility. In addition, if the guarantee by the Export-Import Bank of the United States ceases to be in full force and effect, the Company must repay all loans under the Export-Import agreement.

In May 2012 the Company and SVB entered into a Third Loan Modification Agreement (the “Third Loan Modification Agreement”) which sets forth certain amendments to the Company’s credit facility with the Bank. The Third Loan Modification Agreement increases the Company’s subsidiary investment limit from $10,000 to $12,000 from the effective date through September 30, 2012 and reduces the subsidiary investment limit back to $10,000 thereafter.

Effective September 26, 2012 the Company and SVB entered into a Fourth Loan Modification Agreement (the “Fourth Loan Modification Agreement”) which sets forth certain amendments to the Company’s credit facility with the Bank. The Fourth Loan Modification Agreement eliminates the restriction on investments by the Company in its wholly owned subsidiary, AtriCure Europe, B.V. (“AtriCure Europe”). In connection with the Fourth Loan Modification Agreement, AtriCure Europe executed certain guaranty and security documents pursuant to which AtriCure Europe guaranteed the Company’s obligations under the credit facility and pledged certain of its assets as security for the credit facility.

Effective January 30, 2013 the Company and SVB entered into a Joinder and Fifth Loan Modification Agreement (the “Fifth Loan Modification Agreement”) and an Export-Import Bank Joinder and Third Loan Modification Agreement (the “Third Ex-Im Agreement” and, collectively with the Fifth Loan Modification Agreement, the “Modification Agreements”) which set forth certain amendments to the Company’s credit facility with the Bank. The Modification Agreements add the Company’s wholly-owned subsidiary, AtriCure, LLC, as a borrower, and the Fifth Loan Modification Agreement modifies the Company’s timing for submitting a forecast to the Bank and decreases the EBITDA amount the Company must achieve to meet the minimum EBITDA covenant.

As of December 31, 2012 the Company had no borrowings under the revolving credit facility and borrowing availability of $5,303. Also as of December 31, 2012, the Company had $8,333 outstanding under its term loan, which includes $2,000 classified as current maturities of long-term debt. As of December 31, 2011, the Company had no borrowings under its revolving credit facility and borrowing availability of $8,870. Also as of December 31, 2011, the Company had $6,375 outstanding under its term loan, which included $1,500 classified as current maturities of long-term debt.

The Warrant that was issued with the initial SVB agreement had been recorded as a discount on long-term debt at its fair value and was being amortized over the term of the loan. Accelerated amortization expense of $79 was recorded in March 2011 due to the credit facility modification. For the years ended December 31, 2012 and 2011, amortization expense related to the debt discount totaled $0 and $22, respectively. In addition to the accelerated amortization of the Warrant, the Company also recorded $74 of expense related to deferred financing costs and other fees as a result of the credit facility modification in March 2011.

As of December 31, 2012 the effective interest rate on borrowings under the modified term loan, including debt issuance costs, was 7.6%, and the book value of the Company’s fixed interest rate debt approximated fair value. In June 2011 the Company cancelled an outstanding letter of credit for $250 issued to its corporate credit card program provider which was to expire on July 31, 2011. No letters of credit were outstanding as of December 31, 2012 and 2011.

As of December 31, 2012 the Company had capital leases for computer equipment that expire at various terms through 2016. The cost of the assets under lease was $226. The assets are depreciated over their estimated useful lives, which equal the terms of the leases. Accumulated amortization on the capital leases was $125 at December 31, 2012.

Maturities on long-term debt, including capital lease obligations are as follows:


Year	Amount
2014	$	2,032
2015		2,026
2016		2,016
2017		333

Total	$	6,407

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References + Details

Commitments and Contingencies

12 Months Ended

Dec. 31, 2012

Commitments and Contingencies [Abstract]

COMMITMENTS AND CONTINGENCIES

10. COMMITMENTS AND CONTINGENCIES

Operating Leases. The Company leases various types of office, manufacturing and warehouse facilities and equipment under noncancelable operating leases that expire at various terms through 2014. Future minimum lease payments under non-cancelable operating leases are as follows:


Year	Amount
2013	$	583
2014		17

Total	$	600

Rent expense was approximately $769, $685 and $668 in 2012, 2011, and 2010, respectively.

Royalty Agreements. The Company has certain royalty agreements in place with terms that include the payment of royalties based on product revenue from sales of current products. One royalty agreement, which was effective January 1, 2010, has a rate of 1.5% of product sales and includes minimum quarterly payments of $50 through 2015 and a maximum of $2,000 in total royalties over the term of the agreement. Another royalty agreement, which was effective in 2003 and has a term of at least twenty years, has royalty rates of 5% of product sales. Parties to the royalty agreements have the right at any time to terminate the agreement immediately for cause. Royalty expense of $603, $505 and $332 was recorded as part of cost of revenue for the years ended December 31, 2012, 2011 and 2010, respectively.

Purchase Agreement. On June 15, 2007 the Company entered into a purchase agreement with MicroPace Pty Ltd Inc., (“MicroPace”). The agreement, as amended, provides for MicroPace to produce a derivative of one of their products tailored for the cardiac surgical environment, known as the “MicroPace ORLab™” for worldwide distribution by the Company. Pursuant to the terms of the amended agreement, in order for the Company to retain exclusive distribution rights, the Company was required to purchase a minimum of 40 units during the period December 1, 2010 through December 31, 2011 to extend exclusivity through 2012 and an additional 40 units during 2012 to extend exclusivity through December 31, 2013. Units purchased in excess of yearly minimums reduce future minimum purchase requirements. A total of 56 units were purchased by the Company between December 1, 2010 and December 31, 2011, thereby extending exclusive distribution rights through December 31, 2012. A total of 60 units were purchased by the Company during 2012, fulfilling the purchase requirement to extend exclusive distribution rights through 2013.

In April 2012 the Company entered into a development and manufacturing services agreement with Stellartech Research Corporation (“Stellartech”). Under the terms of the agreement, Stellartech will provide development services for the next generation of the Company’s radio frequency generators and will manufacture at least the first 300 units of the product. The agreement also establishes Stellartech as the exclusive supplier of the generators during the initial three years after product completion. There is no minimum purchase requirement beyond the initial 300 units.

Distributor Termination. In July 2010 the Company terminated a distributor agreement with a European distributor. Under the terms of the agreement the Company paid the distributor a termination fee, repurchased saleable disposable product inventory and assigned the distributor’s capital equipment to AtriCure Europe BV. Additionally, the Company entered into a consulting agreement with the distributor to provide ongoing consulting services through September 30, 2012. In exchange for these services, beginning October 1, 2010, the distributor earned €50 (approximately $65) per quarter for a total of €400 (approximately $528).

Chief Financial Officer and Chief Executive Officer Resignations. The Company’s Vice President, Finance and Administration and Chief Financial Officer (“CFO”) resigned effective April 30, 2012. In connection with the resignation, the CFO and AtriCure entered into an agreement pursuant to which the CFO is entitled to receive: (i) all accrued and unpaid base salary through the effective date of the resignation; (ii) payment for any accrued and unused vacation; (iii) continued vesting of all stock options and restricted stock until April 30, 2013; and (iv) twelve (12) months base salary ($250).

On August 2, 2012, the Company’s Chief Executive Officer and President (“CEO”) notified the Company that he was resigning from his positions with the Company. Pursuant to his Employment Agreement, the CEO continued to serve as Chief Executive Officer and President of the Company through September 30, 2012. The CEO’s term as a member of the Company’s Board of Directors ended effective August 2, 2012. In connection with the resignation, the CEO and AtriCure entered into an agreement pursuant to which he is entitled to receive: (i) all accrued and unpaid base salary through the effective date of the resignation; (ii) payment for any accrued and unused vacation; (iii) continued vesting of all stock options and restricted stock until March 31, 2013; and (iv) six (6) months base salary ($225).

The Company recorded a total of approximately $1.6 million in expense related to the departure of the Company’s Chief Financial Officer and Chief Executive Officer.

Legal. The Company is not party to any material pending or threatened litigation, except as described below:

Class Action Lawsuits

AtriCure, Inc. and certain of its current and former officers were named as defendants in a purported securities class action lawsuit in 2007. The suit alleged violations of the federal securities laws and sought damages on behalf of purchasers of the Company’s common stock during the period from the Company’s initial public offering in August 2005 through February 16, 2006. Although the Company admitted no wrongdoing, it recorded a liability of $2,000 in December 2009 which represented an estimate of the potential defense and/or settlement costs. In addition, the Company recorded a related receivable of $2,000 from its insurance carrier for the potential defense and/or settlement costs, as recovery was expected beyond a reasonable doubt. In October 2010 the parties signed a Definitive Stipulation of Settlement agreement for $2,000, which was subject to notice to the class as well as approval by the court, which occurred in May 2011. The Company’s insurance carrier paid the claim in full in June 2011.

In December 2008 AtriCure, Inc. and certain of its current executive officers were named in a putative class action lawsuit. The plaintiffs alleged violations of Sections10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder and sought unspecified damages against AtriCure, Inc. and certain of its current executive officers. The plaintiffs alleged, among other things, that the defendants issued materially false and misleading statements that failed to disclose that the Company improperly promoted certain products to physicians and caused the filing of false claims for reimbursement. In March 2010 the court granted in part and denied in part the Company’s motion to dismiss and, in particular, dismissed the claim that the Company caused the filing of false claims for reimbursement. In October 2010 the court ordered final approval of the settlement for $2,750, which was funded by the Company’s insurance carrier.

Department of Justice Investigation

In October 2008 the Company received a letter from the Department of Justice (“DOJ”) informing the Company that it was conducting an investigation for potential False Claims Act (“FCA”) and common law violations relating to its surgical ablation devices. Specifically, the letter stated that the DOJ was investigating the Company’s marketing practices utilized in connection with its surgical ablation system to treat AF, a specific use outside the FDA’s 510(k) clearance. The letter also stated that the DOJ was investigating whether the Company instructed hospitals to bill Medicare for cardiac surgical ablation using incorrect billing codes. The Company cooperated with the investigation and operated its business in the ordinary course during the investigation. In December 2009 the Company reached a tentative settlement with the DOJ to resolve the investigation and recorded a liability and charged operating expenses for a total of $3,956, which represented the net present value of the proposed settlement amount to be paid to the DOJ, the Relator, and Relator’s counsel (total payments based on the settlement inclusive of interest were estimated to be $4,350, payable over five years).

The settlement was finalized pursuant to the preliminary terms in February 2010, and the Company entered into a settlement agreement with the DOJ, the Office of the Inspector General (“OIG”), and the Relator in the qui tam complaint discussed below. The settlement agreement definitively resolved all claims related to the DOJ investigation. The Company did not admit nor will it admit to any wrongdoing in connection with the settlement. As of December 31, 2012 the Company had made $2,050 in payments (including interest), and had a liability related to this settlement totaling $2,229, of which $1,120 was classified as current.

As part of the resolution, the Company also entered into a five year Corporate Integrity Agreement with the OIG. This agreement acknowledges the existence of the Company’s corporate compliance program and provides for certain other compliance-related activities during the five year term of the agreement. Those activities include specific written standards, monitoring, training, education, independent review, disclosure and reporting requirements.

Qui Tam Complaint

In July 2009 a copy of a qui tam complaint against the Company was unsealed. The qui tam complaint, filed in the U.S. District Court for the Southern District of Texas, was originally filed by the Relator in August 2007. The complaint, which was related to the DOJ investigation, alleged a cause of action under the FCA relating to the Company’s alleged marketing practices in connection with its surgical cardiac ablation devices. In August 2009 the DOJ declined to intervene in the qui tam complaint. The qui tam complaint was settled in February 2010 in accordance with the DOJ settlement agreement above.

The Company may from time to time become a party to additional legal proceedings.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6398077&loc=d3e12565-110249

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14435-108349

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.25)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 440
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Income Taxes

12 Months Ended

Dec. 31, 2012

Income Taxes[Abstract]

INCOME TAXES

11. INCOME TAXES

The Company files federal, state, and foreign income tax returns in jurisdictions with varying statutes of limitations. Income taxes are computed using the asset and liability method in accordance with FASB ASC 740 under which deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities. Deferred taxes are measured using provisions of currently enacted tax laws. A valuation allowance against deferred tax assets is recorded when it is more likely than not that such assets will not be fully realized. The Company has recorded a full valuation allowance against its net deferred tax assets as it is more likely than not that the benefit of the deferred tax assets will not be recognized in future periods. Tax credits are accounted for as a reduction of income taxes in the year in which the credit originates. The Company does not expect any significant unrecognized tax benefits to arise over the next twelve months and is fully reserved.

The detail of deferred tax assets and liabilities at December 31 is as follows:


	2012			2011
Deferred tax assets (liabilities):
Net operating loss carryforward	$	22,974		$	20,819
Research and development credit carryforward		3,603			3,597
Equity compensation		4,082			3,473
Intangible assets		757			832
Accruals and reserves		269			295
Inventory		228			271
Fixed assets		(230	)		28
Other, net		2			1

Subtotal		31,685			29,316
Less valuation allowance		(31,685	)		(29,316	)

Total	$	—		$	—

The Company’s provision for income taxes is as follows:


	2012			2011			2010
Current income tax expense	$	50		$	31		$	19
Deferred tax benefit		(2,336	)		(2,005	)		(1,118	)
Increase in valuation allowance		2,336			2,005			1,118

Total income tax expense	$	50		$	31		$	19

The Company has a federal net operating loss carryforward of $63,807 which will begin to expire in 2021 and state net operating loss carryforwards of $26,875 which have varying expirations ranging from 5 years to 20 years. The Company also has a foreign net operating loss carryforward of approximately $8,613 which will begin to expire in 2016. Additionally, the Company has a federal research and development credit carryforward of $3,603 which will begin to expire in 2022.

The Company’s 2012, 2011 and 2010 effective income tax rates differ from the federal statutory rate as follows:


	2012						2011						2010
Federal tax at statutory rate		34.00	%	$	(2,483	)		34.00	%	$	(1,844	)		34.00	%	$	(1,290	)
Federal R&D credit		0.08			(6	)		6.11			(332	)		9.03			(343	)
Valuation allowance		(31.98	)		2,336			(37.09	)		2,012			(29.45	)		1,118
State income taxes		0.67			(49	)		2.90			(157	)		(3.12	)		118
Foreign NOL rate change		1.40			(102	)		—			—			(3.29	)		125
Foreign tax rate differential		(1.94	)		142			(1.49	)		81			(3.63	)		138
Other		(2.91	)		212			(5.00	)		271			(4.04	)		153

Effective tax rate		(0.68	)%	$	50			(0.57	)%	$	31			(0.50	)%	$	19

The Company’s pre-tax book loss for AtriCure, Inc. and its subsidiary, AtriCure Europe B.V., was ($5,909) and ($1,575), respectively, for 2012, ($4,530) and ($895), respectively, for 2011 and ($2,240) and ($1,533), respectively, for 2010.

The Company currently has not had to accrue interest and penalties related to unrecognized tax benefits. However, when or if the situation occurs, the Company will recognize interest and penalties within the income tax expense (benefit) line in the accompanying Consolidated Statements of Operations and Comprehensive Loss and within the related tax liability line in the Consolidated Balance Sheets.

- 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.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 43, 44, 45, 46, 47, 48, 49
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Concentrations

12 Months Ended

Dec. 31, 2012

Concentrations [Abstract]

CONCENTRATIONS

12. CONCENTRATIONS

During fiscal 2012, 2011 and 2010 approximately 19.6%, 20.9% and 19.4%, respectively, of the Company’s total net revenue was derived from its top ten customers. During 2012, 2011, and 2010 no customer accounted for more than 10% of the Company’s revenue.

The Company maintains cash and cash equivalents balances which at times exceed FDIC limits. As of December 31, 2012 $10,835 of the cash and cash equivalents balance was in excess of the FDIC limits.

- Definition

The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-Section 50
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=6927468&loc=d3e6327-108592

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 20
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13531-108611

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-Section 50
-Paragraph 20
-URI http://asc.fasb.org/extlink&oid=6927468&loc=d3e6404-108592

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=6927468&loc=d3e6442-108592

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-Section 50
-Paragraph 18
-URI http://asc.fasb.org/extlink&oid=6927468&loc=d3e6351-108592

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13537-108611

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 94-6
-Paragraph 21, 22, 24
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15A
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Employee Benefit Plans

12 Months Ended

Dec. 31, 2012

Employee Benefit Plans [Abstract]

EMPLOYEE BENEFIT PLANS

13. EMPLOYEE BENEFIT PLANS

The Company sponsors the AtriCure, Inc. 401(k) Plan, a defined contribution plan covering substantially all employees of the Company (the “Plan”). The Plan was amended effective September 1, 2011 to reflect modifications to the Plan due to a change in Plan Administrator. Eligible employees may contribute up to $17 of their pre-tax annual compensation (up to $22 for participants over age 50). During 2012 and 2011, the Company made matching contributions of 25% of the first 6% of employee contributions to the Plan. Employer contributions to the Plan were suspended during 2010. The Company’s matching contributions expensed during 2012 and 2011 were $234 and $221, respectively. Additional amounts may be contributed to the Plan at the discretion of the Company’s board of directors. No such discretionary contributions were made during 2012, 2011 or 2010.

Equity Compensation Plans

12 Months Ended

Dec. 31, 2012

Equity Compensation Plans [Abstract]

EQUITY COMPENSATION PLANS

14. EQUITY COMPENSATION PLANS

The Company has several share-based incentive plans: the 2001 Stock Option Plan (the “2001 Plan”), the 2005 Equity Incentive Plan (the “2005 Plan”) and the 2008 Employee Stock Purchase Plan (the “ESPP”).

2001 Plan and 2005 Plan

The 2001 Plan is no longer used for granting incentives. Under the 2005 Plan, the Board of Directors may grant incentive stock options to employees and any parent or subsidiary’s employees, and may grant nonstatutory stock options, restricted stock, stock appreciation rights, performance units or performance shares to employees, directors and consultants of the Company and any parent or subsidiary’s employees, directors and consultants. The administrator (currently the Compensation Committee of the Board of Directors) has the power to determine the terms of any awards, including the exercise price of options, the number of shares subject to each award, the exercisability of the awards and the form of consideration.

Options granted under the 2001 Plan and the 2005 Plan generally expire ten years from the date of grant. Options granted from the 2001 Plan are generally exercisable beginning one year from the date of grant in cumulative yearly amounts of 25% of the shares granted. Options granted from the 2005 Plan generally vest at a rate of 25% on the first anniversary date of the grant and ratably each month thereafter. Restricted stock awards granted under the 2005 Plan vest 25% annually over four years from date of grant.

As of December 31, 2012 6,344 shares of common stock had been reserved for issuance under the 2005 Plan. The shares authorized for issuance under the 2005 Plan include (a) shares reserved but unissued under the 2001 Plan as of August 10, 2005, (b) shares returned to the 2001 Plan as the result of the termination of options or the repurchase of shares issued under such plan, and (c) annual increases in the number of shares available for issuance on the first day of each year equal to the lesser of:

•

3.25% of the outstanding shares of common stock on the first day of the fiscal year;

•

825 shares; or

•

an amount the Company’s Board of Directors may determine.

On January 1, 2012 an additional 532 shares were authorized for issuance under the 2005 Plan, representing 3.25% of the outstanding shares on that date. As of December 31, 2012 there were 432 shares available for future grants under the plans.

Activity under the plans during 2012 was as follows:


Stock Options	Number of Shares Outstanding			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at January 1, 2012		2,536		$	9.00
Granted		972			7.15
Cancelled or forfeited		(109	)		10.62
Exercised		(227	)		2.90

Outstanding at December 31, 2012		3,172		$	8.81		5.19	$	1,479

Vested and expected to vest		3,071		$	8.86		5.06	$	1,433

Exercisable at December 31, 2012		1,966		$	9.58		3.20	$	971

Restricted Stock	Number of Shares Outstanding			Weighted Average Grant Date Fair Value
Outstanding at January 1, 2012		403		$	7.68
Awarded		293			7.69
Forfeited		(49	)		8.36
Released		(143	)		6.61

Outstanding at December 31, 2012		504		$	7.93

Activity under the plans during 2011 was as follows:


Stock Options	Number of Shares Outstanding			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at January 1, 2011		2,787		$	7.82
Granted		264			12.26
Cancelled or forfeited		(78	)		8.06
Exercised		(437	)		3.63

Outstanding at December 31, 2011		2,536		$	9.00		5.72	$	6,667

Vested and expected to vest		2,514		$	8.98		5.69	$	6,635

Exercisable at December 31, 2011		1,970		$	9.07		4.94	$	5,002


Restricted Stock	Number of Shares Outstanding			Weighted Average Grant Date Fair Value
Outstanding at January 1, 2011		372		$	4.39
Awarded		189			11.61
Forfeited		(38	)		5.75
Released		(120	)		4.27

Outstanding at December 31, 2011		403		$	7.68

The total intrinsic value of options exercised during the years ended December 31, 2012, 2011 and 2010 was $1,338, $3,403 and $312, respectively. As a result of the Company’s tax position, no tax benefit was recognized related to the stock option exercises. For 2012, 2011 and 2010, $659, $1,588 and $353, respectively, in cash proceeds were included in the Company’s Consolidated Statements of Cash Flows as a result of the exercise of stock options. The total fair value of performance shares vested during 2012, 2011 and 2010 was $99, $1,243 and $0, respectively. The total fair value of restricted stock vested during 2012, 2011 and 2010 was $1,292, $1,457 and $981, respectively.

The exercise price per share of each option is equal to the fair market value of the underlying share on the date of grant. The Company issues registered shares of common stock to satisfy stock option exercises and restricted stock grants.

The Company recognized expense related to stock options and restricted stock for 2012, 2011, and 2010 of $3,211, $2,617 and $2,178, respectively. As of December 31, 2012 there was $9,118 of unrecognized compensation costs related to non-vested stock option and restricted stock arrangements ($5,571 relating to stock options and $3,547 relating to restricted stock). This cost is expected to be recognized over a weighted-average period of 3.2 years for stock options and 2.7 years for restricted stock.

The Company awarded 225 performance options to its new President and CEO when he joined the Company in November 2012. The options expire ten years from the date of grant and vest in increments of 25 shares when the volume adjusted weighted average closing price of the common stock of the Company as reported by NASDAQ (or any other exchange on which the common stock of the Company is listed) for 30 consecutive days equals or exceeds each of $10.00 per share, $12.50 per share, $15.00 per share, $17.50 per share, $20.00 per share, $25.00 per share, $30.00 per share, $35.00 per share and $40.00 per share. In accordance with FASB ASC 718, a Monte Carlo simulation was performed to estimate the fair values, vesting terms and vesting probabilities for each tranche of options. Expense calculated using these estimates is being recorded over the estimated vesting terms. The Company recognized expense of $36 related to the performance options in 2012. As of December 31, 2012 there was $787 of unrecognized compensation costs related to non-vested performance options. This cost is expected to be recognized over a weighted-average period of 2.45 to 5.22 years. None of the market conditions were met as of December 31, 2012; therefore, none of the performance options were exercisable.

In conjunction with the departure of the Company’s Chief Financial Officer on April 30, 2012, the Company extended the vesting terms of the share-based compensation of this former employee. This extension resulted in a modification per FASB ASC 718. As such, the Company recorded $396 in incremental compensation expense during the second quarter of 2012.

In conjunction with the departure of the Company’s Chief Executive Officer on September 30, 2012, the Company extended the vesting terms of the share-based compensation of this former employee. This extension resulted in a modification per FASB ASC 718. As such, the Company recorded $522 in incremental compensation expense during the third quarter of 2012.

The Company has issued performance shares to certain employees and consultants to incent and reward them for the achievement of specified performance over various service periods. The participants receive awards for a specified number of shares of the Company’s common stock at the beginning of the award period, which entitles the participants to the shares at the end of the award period if achievement of the specified metrics and service requirements occurs. The Company released 10 and 111 performance shares (gross) during 2012 and 2011, respectively, related to the participants’ achievement of certain specified metrics. In accordance with FASB ASC 718, the Company estimates the number of shares to be issued based upon the probability that the performance metric and service period will be achieved. The fair value of the estimated award, based on the market value of the Company’s stock on the date of award, is expensed over the award period. The probability of meeting the specified metrics is reviewed quarterly. During 2012, 2011 and 2010 the Company recognized expense related to the performance shares of $0, $40 and $380 respectively. As of December 31, 2012, there was no unrecognized compensation cost related to non-vested share-based compensation arrangements associated with performance shares.

Employee Stock Purchase Plan (ESPP)

During the second quarter of 2008 the Company established its 2008 Employee Stock Purchase Plan (“ESPP”) which is available to eligible employees as defined in the ESPP. Under the ESPP, shares of the Company’s common stock may be purchased at a discount (currently 15%) of the lesser of the closing price of the Company’s common stock on the first trading day or the last trading day of the offering period. The offering period (currently six months) and the offering price are subject to change. Participants may not purchase more than $25 of the Company’s common stock in a calendar year and, effective January 1, 2009, may not purchase more than 1.5 shares during an offering period. Beginning on January 1, 2009 and on the first day of each fiscal year thereafter during the term of the ESPP, the number of shares available for sale under the ESPP shall be increased by the lesser of (i) two percent (2%) of the Company’s outstanding shares of common stock as of the close of business on the last business day of the prior calendar year, not to exceed 600 shares, or (ii) a lesser amount determined by the Board of Directors. At December 31, 2012, there were 774 shares available for future issuance under the ESPP. Share-based compensation expense with respect to the ESPP was $257, $273 and $194 for 2012 and 2011, and 2010, respectively.

Valuation and Expense Information Under FASB ASC 718

The following table summarizes share-based compensation expense related to employee share-based compensation under FASB ASC 718 for 2012, 2011 and 2010. This expense was allocated as follows:


	2012		2011		2010
Cost of revenue	$	272	$	161	$	146
Research and development expenses		267		474		537
Selling, general and administrative expenses		2,929		2,296		2,070

Total	$	3,468	$	2,931	$	2,753

In calculating compensation expense, the fair value of the options is estimated on the grant date using the Black-Scholes model including the following assumptions:


	2012	2011	2010
Risk-free interest rate	0.65 - 1.37%	1.59 - 2.78%	1.79 - 2.88%
Expected life of option (years)	5.38 to 7.14	6.00 to 6.25	6.00 to 6.25
Expected volatility of stock	69.00 - 71.00%	71.00 - 72.00%	66.00 - 71.00%
Weighted-average volatility	69.50%	71.58%	69.30%
Dividend yield	0.00%	0.00%	0.00%

For grants made before December 31, 2010 the Company’s estimate of volatility was weighted between the Company’s trading history and other companies in the industry. Beginning January 1, 2011 the Company’s estimate of volatility is based solely on the Company’s trading history. The risk-free interest rate assumption is based upon the U.S. treasury yield curve at the time of grant for the expected option life. The simplified method was utilized in determining the expected life of options prior to January 1, 2012. Since January 1, 2012 the Company has estimated the expected terms of options using historical employee exercise behavior adjusted for abnormal activity.

The fair value of restricted stock awards is based on the market value of the Company’s stock on the date of the awards.

Based on the assumptions noted above, the weighted average estimated grant date fair value per share of the stock options and restricted stock granted for 2012, 2011 and 2010 was as follows:


	2012		2011		2010
Stock options	$	4.65	$	8.01	$	3.59
Restricted stock		7.69		11.61		5.69

In calculating compensation expense for performance options, the fair value of the options is estimated on the grant date using a Monte Carlo simulation including the following assumptions:


Strike price	$	5.91
Contractual term		10.00
Expected volatility of stock		69.60	%
Expected rate of return		1.75	%
Dividend yield		0.00	%

The estimated contractual term is estimated considering that the performance options were issued to a high ranking executive of the Company and that they will be held until expiration. Expected volatility is estimated based on the Company’s trading history. The expected rate of return assumption is based upon the U.S. treasury yield curve at the time of grant for the expected option life.

Based on the assumptions noted above, the estimated grant date fair value per share of the performance options granted in 2012 was as follows:


	Price Target		Fair Value
Tranche 1	$	10.00	$	4.32
Tranche 2		12.50		4.30
Tranche 3		15.00		4.27
Tranche 4		17.50		4.23
Tranche 5		20.00		4.19
Tranche 6		25.00		4.10
Tranche 7		30.00		4.01
Tranche 8		35.00		3.92
Tranche 9		40.00		3.83

Non-Employee Stock Compensation

The Company has issued nonstatutory common stock options to consultants to purchase shares of common stock as a form of compensation for services provided to the Company. Such options vest over a service period ranging from immediately to four years. After January 1, 2006 all stock options to non-employee consultants have a four year vesting period and vest at a rate of 25% on the first anniversary date of the grant and ratably each month thereafter.

The Company accounts for the options granted to non-employees prior to their vesting date in accordance with ASC 505-50, Equity-Based Payments to Non-Employees. Because these options do not contain specific performance provisions, there is no measurement date of fair value until the options vest. Therefore, the fair value of the options granted and outstanding prior to their vesting date is remeasured each reporting period. The fair value was determined using the Black-Scholes model. There were no non-employee stock options granted during 2012 and 2011. The values attributable to the non-vested portion of the non-employee stock options have been amortized over the service period on a graded vesting method and the vested portion of these stock options was remeasured at each vesting date. Stock compensation expense with respect to unvested non-employee stock options totaled $0, $8 and $19 for 2012, 2011 and 2010, respectively.

Once these non-employee stock option grants have fully vested, the awards no longer fall within the scope of ASC 505-50. Because the stock options require settlement by the Company’s delivery of registered shares and because the tax withholding provisions in the awards allow the stock options to be partially net-cash settled, these vested stock options are no longer eligible for equity classification and are, thus, accounted for as derivative liabilities under FASB ASC 815 until the stock options are ultimately either exercised or forfeited. Accordingly, the vested non-employee stock options are classified as liabilities and remeasured at fair value through earnings at each reporting period. During 2012, 2011 and 2010, $179, $23 and ($165), respectively, of income (expense) was recorded as a result of the remeasurement of the fair value of these stock options. As of December 31, 2012 and 2011, respectively, fully vested stock options to acquire 38 and 34 shares of common stock held by non-employee consultants remained unexercised and a liability of $78 and $208 was included in accrued liabilities in the Consolidated Balance Sheets as of December 31, 2012 and 2011, respectively.

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 50
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 40
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 14

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 123R
-Paragraph 64, 65, A240
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 93-6
-Paragraph 53
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Segment and Geographic Information

12 Months Ended

Dec. 31, 2012

Segment and Geographic Information [Abstract]

SEGMENT AND GEOGRAPHIC INFORMATION

15. SEGMENT AND GEOGRAPHIC INFORMATION

The Company considers reporting segments in accordance with FASB ASC 280, “Segment Reporting.” The Company develops, manufactures, and sells devices designed primarily for the surgical ablation of cardiac tissue for the treatment of atrial fibrillation and systems designed for the exclusion of the left atrial appendage. These devices are developed and marketed to a broad base of medical centers in the United States and internationally. Management considers all such sales to be part of a single reportable segment.

Geographic revenue was as follows:


Revenue:	2012		2011		2010
United States	$	52,616	$	48,931	$	47,518
International		17,631		15,471		11,488

Total	$	70,247	$	64,402	$	59,006

Revenue by product type was as follows:


Revenue:	2012		2011		2010
Open-heart	$	32,880	$	29,202	$	29,024
Minimally Invasive		12,733		14,166		16,110
AtriClip		7,003		5,563		2,384
Total United States		52,616		48,931		47,518
International		17,631		15,471		11,488

Total	$	70,247	$	64,402	$	59,006

The majority of the Company’s long-lived assets are located in the United States.

- 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
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-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
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-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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Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 131
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Selected Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2012

Selected Quarterly Financial Data [Abstract]

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

16. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

(Dollars in thousands, except per share data)


	For the Three Months Ended
	March 31,						June 30,						September 30,						December 31,
	2012			2011			2012			2011			2012			2011			2012			2011
Operating Results:
Revenue	$	17,476		$	15,637		$	18,268		$	16,780		$	16,139		$	15,222		$	18,364		$	16,763
Gross profit		12,752			11,893			12,711			12,278			11,549			11,085			13,002			11,740
Loss from operations		(1,496	)		(1,074	)		(1,320	)		(771	)		(2,529	)		(1,191	)		(1,852	)		(1,695	)
Net loss		(1,620	)		(1,273	)		(1,326	)		(946	)		(2,567	)		(1,156	)		(2,020	)		(2,080	)
Net loss per share (basic and diluted)	$	(0.10	)	$	(0.08	)	$	(0.08	)	$	(0.06	)	$	(0.16	)	$	(0.07	)	$	(0.12	)	$	(0.13	)

Amounts may not sum to consolidated totals for the full year due to rounding. Basic and diluted net loss per share is computed independently for each of the quarters presented. Therefore, the sum of the quarterly per share amounts will not necessarily equal the total for the year.

- Definition

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

+ References + Details

Subsequent Event

12 Months Ended

Dec. 31, 2012

Subsequent Event [Abstract]

SUBSEQUENT EVENT

17. SUBSEQUENT EVENT

In January 2013 the Company completed a public offering of common stock under its July 2011 shelf registration. The Company sold 4.0 million shares of common stock, par value $0.001 per share, at a price of $7.25 per share to generate proceeds of $27.1 million after expenses. Offering costs were recorded in additional paid in capital to offset proceeds.

Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2012

Valuation and Qualifying Accounts [Abstract]

Valuation and Qualifying Accounts

VALUATION AND QUALIFYING ACCOUNTS


	Beginning Balance		Additions		Deductions		Ending Balance
Allowance for doubtful accounts receivable
Year ended December 31, 2012	$	37	$	75	$	63	$	49
Year ended December 31, 2011		9		29		1		37
Year ended December 31, 2010		24		8		23		9

Reserve for sales returns and allowances
Year ended December 31, 2012	$	40	$	262	$	197	$	105
Year ended December 31, 2011		53		52		65		40
Year ended December 31, 2010		3		55		3		53

Allowance for inventory valuation
Year ended December 31, 2012	$	206	$	381	$	320	$	267
Year ended December 31, 2011		32		311		137		206
Year ended December 31, 2010		183		47		198		32

Valuation allowance for deferred tax assets
Year ended December 31, 2012	$	29,316	$	2,369	$	—	$	31,685
Year ended December 31, 2011		27,312		2,004		—		29,316
Year ended December 31, 2010		26,194		1,118		—		27,312

Description of Business and Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2012
Description of Business and Summary of Significant Accounting Policies [Abstract]
Nature of the Business	*Nature of the Business—*AtriCure, Inc. (the “Company” or “AtriCure”) was incorporated in the State of Delaware on October 31, 2000. The Company develops, manufactures and sells devices designed primarily for the surgical ablation of cardiac tissue and devices for the exclusion of the left atrial appendage. The Company sells its products to hospitals and medical centers globally.
Principles of Consolidation	*Principles of Consolidation—*The Consolidated Financial Statements include the accounts of the Company, AtriCure, LLC, the Company’s wholly-owned subsidiary organized in the State of Delaware, and AtriCure Europe B.V., the Company’s wholly-owned subsidiary incorporated in the Netherlands. All intercompany accounts and transactions have been eliminated in consolidation.
Cash and Cash Equivalents	*Cash and Cash Equivalents—*The Company considers highly liquid investments with maturities of three months or less at the date of acquisition as cash equivalents in the accompanying Consolidated Financial Statements.
Investments	*Investments—*The Company places its investments primarily in U.S. Government agencies and securities, corporate bonds and commercial paper. The Company classifies all investments as available-for-sale. Investments with maturities of less than one year are classified as short-term investments. Investments are recorded at fair value, with unrealized gains and losses recorded as a separate component of stockholders’ equity. The Company recognizes gains and losses when these securities are sold using the specific identification method and includes them in interest income or expense in the Consolidated Statements of Operations.
Revenue Recognition	*Revenue Recognition—*The Company accounts for revenue in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 605, “Revenue Recognition” (“ASC 605”). The Company determines the timing of revenue recognition based upon factors such as passage of title, installation, payment terms and ability to return products. The Company recognizes revenue when all of the following criteria are met: (i) there is persuasive evidence that an arrangement exists; (ii) delivery of the products and/or services has occurred; (iii) the selling price is fixed or determinable; and (iv) collectability is reasonably assured. Revenue is generated from the sale of the Company’s surgical devices. The Company’s surgical devices consist primarily of individual disposable handpieces and equipment generators. The Company’s customers need the combination of the generator and the handpieces to have a functional system. The Company believes that the generator and handpiece are considered a single unit of accounting under ASC 605 because neither the generator nor handpiece have value to the customer on a standalone basis. Therefore, because the customer needs both the generator and handpiece to have a functional system, revenue is recognized upon the later of delivery of the generator or the handpiece. Pursuant to the Company’s standard terms of sale, revenue is recognized when title to the goods and risk of loss transfers to customers and there are no remaining obligations that will affect the customers’ final acceptance of the sale. Generally, the Company’s standard terms of sale define the transfer of title and risk of loss to occur upon shipment to the respective customer. The Company generally does not maintain any post-shipping obligations to the recipients of the products. No installation, calibration or testing of this equipment is performed by the Company subsequent to shipment to the customer in order to render it operational. Product revenue includes shipping and handling revenue of $723, $664 and $657 in 2012, 2011 and 2010, respectively. Cost of freight for shipments made to customers is included in cost of revenue. Sales and other value-added taxes collected from customers and remitted to governmental authorities are excluded from revenue. The Company sells its products primarily through a direct sales force and through AtriCure Europe B.V. Terms of sale are generally consistent for both end-users and distributors except that payment terms are generally net 30 days for end-users and net 60 days for distributors.
Sales Returns and Allowances	*Sales Returns and Allowances*—The Company maintains a provision for sales returns and allowances to account for potential returns of defective or damaged products, products shipped in error and price adjustments. The Company estimates such provision quarterly based primarily on a specific identification basis, in addition to estimating a general reserve. Increases to the provision result in a reduction of revenue. The provision is included in accrued liabilities in the Consolidated Balance Sheets.
Allowance for Uncollectible Accounts Receivable	*Allowance for Uncollectible Accounts Receivable—*The Company evaluates the collectability of accounts receivable in order to determine the appropriate reserve for doubtful accounts. In determining the amount of the reserve, the Company considers aging of account balances, historical credit losses, customer-specific information and other relevant factors. An increase to the allowance for doubtful accounts results in a corresponding increase in expense. The Company reviews accounts receivable and adjusts the allowance based on current circumstances and charges off uncollectible receivables against the allowance when all attempts to collect the receivable have failed. The Company’s history of write-offs against the allowance has not been significant.
Inventories	*Inventories—*Inventories are stated at the lower of cost or market using the first-in, first-out cost method (“FIFO”) and consist of raw materials, work in process and finished goods. The Company’s industry is characterized by rapid product development and frequent new product introductions. Uncertain timing of product approvals, variability in product launch strategies and variation in product utilization all impact excess and obsolete inventory. An inventory reserve based on product usage is estimated and recorded quarterly for excess, slow moving and obsolete inventory as well as inventory with a carrying value in excess of its net realizable value. Write-offs are recorded when a product is destroyed. The Company’s history of write-offs against the reserve has not been significant.
Property and Equipment	*Property and Equipment—*Property and equipment is stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method of depreciation for financial reporting purposes and applied over the estimated useful lives of the assets. The estimated useful life by major asset category is the following: machinery and equipment is three to seven years, computer and other office equipment is three years, furniture and fixtures is three to seven years and leasehold improvements and equipment leased under a capital lease are the shorter of their useful life or remaining lease term. The Company reassesses useful lives of property and equipment annually, and assets are retired if they are no longer being used. Maintenance and repair costs are expensed as incurred. Included in property and equipment are generators and other capital equipment (such as the Company’s switchbox units and cryosurgical consoles) that are loaned at no cost to direct customers that use the Company’s disposable products. These generators are depreciated over a period of one to three years, which approximates their useful lives, and such depreciation is included in cost of revenue. The estimated useful lives of this equipment are based on anticipated usage by our customers and the timing and impact of expected new technology rollouts by the Company. To the extent the Company experiences changes in the usage of this equipment or introductions of new technologies, the estimated useful lives of this equipment may change in a future period. Depreciation related to these generators was $1,081, $1,294 and $1,369 in 2012, 2011 and 2010, respectively. As of December 31, 2012 and 2011, the net carrying amount of loaned equipment included in net property and equipment in the Consolidated Balance Sheets was $2,197 and $1,204, respectively.
Impairment of Long-Lived Assets	*Impairment of Long-Lived Assets—*The Company reviews property and equipment for impairment using its best estimates based on reasonable and supportable assumptions and projections.
Intangible Assets	*Intangible Assets—*Intangible assets with determinable useful lives are amortized on a straight-line basis over the estimated periods benefited, which have ranged from four to eight years.
Other Income	*Other Income—*Other income consists primarily of foreign currency transaction gains and losses, grant income and non-employee option gains and losses related to the fair market value change for fully vested options outstanding for consultants which are accounted for as free-standing derivatives. The Company recorded foreign currency transaction (losses) gains of ($83), $30 and ($171) for the years ended December 31, 2012, 2011 and 2010, respectively, in connection with settlements of its intercompany balance with its subsidiary. The Company periodically is awarded grants to support research and development activities. The Company recognizes grant income when the funds are earned. The Company recorded grant income of $409, $52 and $595 during 2012, 2011 and 2010, respectively. The Company has historically issued stock options to non-employee consultants as a form of compensation for services provided to the Company. Because the non-employee options require settlement by the Company’s delivery of registered shares and because the tax withholding provisions in the awards allow the options to be partially net-cash settled, these options, when vested, are no longer eligible for equity classification and are, thus, subsequently accounted for as derivative liabilities under FASB ASC 815 until the awards are ultimately either exercised or forfeited. Accordingly, the vested non-employee options are classified as liabilities and remeasured at fair value through earnings at each reporting period. During the years ended December 31, 2012, 2011 and 2010, $179, $23 and $(165), respectively, of income (expense) was recorded as a result of the remeasurement of the fair value of these fully vested stock options.
Income Taxes	*Income Taxes—*Income taxes are computed using the asset and liability method in accordance with FASB ASC 740 “Income Taxes” (“ASC 740”), under which deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities. Deferred taxes are measured using provisions of currently enacted tax laws. A valuation allowance against deferred tax assets is recorded when it is more likely than not that such assets will not be fully realized. Tax credits are accounted for as a reduction of income taxes in the year in which the credit originates. The Company’s estimate of the valuation allowance for deferred tax assets requires it to make significant estimates and judgments about its future operating results. The Company’s ability to realize the deferred tax assets depends on its future taxable income as well as limitations on their utilization. A deferred tax asset is reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax asset will not be realized prior to its expiration. The projections of the Company’s operating results on which the establishment of a valuation allowance is based involve significant estimates regarding future demand for the Company’s products, competitive conditions, product development efforts, approvals of regulatory agencies and product cost. If actual results differ from these projections, or if the Company’s expectations of future results change, it may be necessary to adjust the valuation allowance. In evaluating whether to record a valuation allowance, the applicable accounting standards deem that the existence of cumulative losses in recent years is a significant piece of objectively verifiable negative evidence that must be overcome by objectively verifiable positive evidence to avoid the need to record a valuation allowance. The Company has recorded a full valuation allowance against its net deferred tax assets as it is more likely than not that the benefit of the deferred tax assets will not be recognized in future periods.
Net Loss Per Share	*Net Loss Per Share—*Basic and diluted net loss per share is computed in accordance with FASB ASC 260 “Earnings Per Share” (“ASC 260”) by dividing the net loss by the weighted average number of common shares outstanding during the period. Since the Company has experienced net losses for all periods presented, net loss per share excludes the effect of 3,676, 2,949 and 3,408 stock options, restricted stock and performance based shares as of December 31, 2012, 2011, and 2010, respectively, because they are anti-dilutive. Therefore, the number of shares calculated for basic net loss per share is also used for the diluted net loss per share calculation.
Comprehensive Loss and Accumulated Other Comprehensive Income (Loss)	*Comprehensive Loss and Accumulated Other Comprehensive Income (Loss)—*In addition to net loss, comprehensive loss includes foreign currency exchange rate adjustments and unrealized gains and losses on investments.
Research and Development Costs	*Research and Development Costs*—Research and development costs are expensed as incurred. These costs include compensation and other internal and external costs associated with the development and research related to new products or concepts, preclinical studies, clinical trials and cost of products used in trials and tests.
Share-Based Employee Compensation	*Share-Based Employee Compensation—*The Company follows FASB ASC 718 “Compensation-Stock Compensation” (“ASC 718”), to record share-based compensation for all employee share-based payment awards, including stock options, restricted stock, performance shares and stock purchases related to an employee stock purchase plan, based on estimated fair values. The Company’s share-based compensation expense recognized under ASC 718 for the years ended December 31, 2012, 2011 and 2010 was $3,468, $2,931and $2,753, respectively, on a before and after tax basis. FASB ASC 718 requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the Company’s Consolidated Statement of Operations. The expense has been reduced for estimated forfeitures. FASB ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company estimates the fair value of options on the date of grant using the Black-Scholes option-pricing model (“Black-Scholes model”). The Company’s determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by the Company’s stock price, as well as assumptions regarding a number of highly complex and subjective variables. These variables include but are not limited to the Company’s and the peer group’s expected stock price volatility over the term of the awards and actual and projected employee stock option exercise behaviors. For non-employee options, the fair value at the date of grant is subject to adjustment at each vesting date based upon the fair value of the Company’s common stock. The fair value of our market-based performance option grants is estimated at the date of grant using a Monte-Carlo simulation. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in our Consolidated Statement of Operations. The expense has been reduced for estimated forfeitures. The Company estimates the fair value of restricted stock and performance share awards based upon the grant date closing market price of the Company’s common stock. The Company’s determination of fair value is affected by the Company’s stock price as well as assumptions regarding the number of shares expected to be granted and, in the case of performance shares, the likelihood that the performance measures will be achieved. The Company also has an employee stock purchase plan (“ESPP” or the “Plan”) which is available to all eligible employees as defined by the Plan. Under the ESPP, shares of the Company’s common stock may be purchased at a discount. The Company estimates the number of shares to be purchased under the Plan and records compensation expense based upon the fair value of the stock at the beginning of the purchase period using the Black-Scholes model. The Company has historically issued stock options to non-employee consultants as a form of compensation for services provided to the Company. The Company accounts for the options granted to non-employees prior to their vesting date in accordance with ASC 505-50, “Equity-Based Payments to Non-Employees.” Because these options do not contain specific performance provisions, there is no measurement date of fair value until the options vest. Therefore, the fair value of the options granted and outstanding prior to their vesting date is remeasured each reporting period. During the years ended December 31, 2012, 2011 and 2010, $0, $8 and $19, respectively, of expense was recorded as a result of the remeasurement of these unvested stock options. Fully vested options to acquire 38 and 34 shares of common stock held by non-employee consultants remained unexercised as of December 31, 2012 and 2011, respectively. A liability of $78 and $208 was included in accrued liabilities in the Consolidated Balance Sheets as of December 31, 2012 and 2011, respectively.
Use of Estimates	*Use of Estimates—*The preparation of the financial statements in conformity with GAAP 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 revenue and expense during the reporting period. Actual results could differ from those estimates.
Fair Value Disclosures	*Fair Value Disclosures—*The book value of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, short-term investments, short and long-term other assets, accounts payable, accrued expenses, other liabilities and fixed interest rate debt, approximate their fair values. The Company classifies cash as Level 1 within the fair value hierarchy. Accounts receivable, short-term other assets, accounts payable and accrued expenses are also classified as Level 1. The carrying amounts of these assets and liabilities approximate their fair value due to their relatively short-term nature. Other assets and other liabilities are classified as Level 1 within the fair value hierarchy. Cash equivalents and short-term investments are classified as Level 2 within the fair value hierarchy (see Note 3—“Fair Value” for further information). Fixed interest rate debt fair value is determined by calculating the net present value of future debt payments and is classified as Level 2. Significant unobservable inputs with respect to the fair value measurement of the Level 3 non-employee stock options are developed using Company data. Validations of unobservable inputs are performed to the extent the Company has experience. When an input is changed, the Black-Scholes model is updated and the results are analyzed for reasonableness.

Description of Business and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2012

Description of Business and Summary of Significant Accounting Policies [Abstract]

Accumulated other comprehensive income (loss)


	Unrealized Gains (Losses) on Short-Term and Long-Term Investments			Foreign Currency Translation Adjustment			Accumulated Other Comprehensive Income (Loss)
Balance as of December 31, 2009	$	3		$	141		$	144
Current-period change		(3	)		(61	)		(64	)

Balance as of December 31, 2010		0			80			80
Current-period change		2			(119	)		(117	)

Balance as of December 31, 2011		2			(39	)		(37	)
Current-period change		(1	)		115			114

Balance as of December 31, 2012	$	1		$	76		$	77

Fair Value (Tables)

12 Months Ended

Dec. 31, 2012

Fair Value [Abstract]

Financial assets and liabilities measured at fair value on a recurring basis


	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)		Total
Assets:
Money market funds	$	—	$	5,261	$	—	$	5,261
Commercial paper		—		3,247		—		3,247
U.S. government agencies and securities		1,000		—		—		1,000
Corporate bonds		—		—		—		—

Total assets	$	1,000	$	8,508	$	—	$	9,508

Liabilities:
Derivative instruments	$	—	$	—	$	78	$	78

Total liabilities	$	—	$	—	$	78	$	78


	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)		Total
Assets:
Money market funds	$	—	$	7,417	$	—	$	7,417
Commercial paper		—		400		—		400
U.S. government agencies and securities		2,507		—		—		2,507
Corporate bonds		—		1,517		—		1,517

Total assets	$	2,507	$	9,334	$	—	$	11,841

Liabilities:
Derivative instruments	$	—	$	—	$	208	$	208

Total liabilities	$	—	$	—	$	208	$	208

Assumptions used for estimating fair value of the Level 3 liabilities


	As of December 31, 2012	As of December 31, 2011
Risk-free interest rate	0.23% - 0.74%	0.12% - 0.86%
Expected life of option (years)	1.75 - 5.10	0.97 - 5.11
Expected volatility of stock	70.00%	71.00%
Dividend yield	0.00%	0.00%

Level 3 fair value measurements using significant other unobservable inputs for derivative instruments


	2012			2011			2010
Beginning Balance—January 1	$	208		$	268		$	180
Total gains/losses (realized/unrealized) included in earnings		(179	)		(23	)		165
Purchases (exercises)		(50	)		(55	)		(77	)
Reclassification from equity to liability when fully vested		99			18			—

Ending Balance—December 31	$	78		$	208		$	268

Gains (losses) included in earnings (or changes in net assets attributable to the change in unrealized gains/losses relating to assets held at reporting date)	$	179		$	23		$	(165	)

- Definition

Tabular disclosure of liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). Where the quoted price in an active market for the identical liability is not available, the Level 1 input is the quoted price of an identical liability when traded as an asset.

+ References + Details

Investments (Tables)

12 Months Ended

Dec. 31, 2012

Investments [Abstract]

Summary of short-term investments


	Cost Basis		Unrealized Gains		Fair Value
U.S. Government agencies and securities	$	999	$	1	$	1,000
Commercial paper		3,247		0		3,247

Total	$	4,246	$	1	$	4,247


	Cost Basis		Unrealized Gains (Losses)		Fair Value
U.S. Government agencies and securities	$	2,506	$	1	$	2,507
Commercial paper		400		0		400
Corporate bonds		1,516		1		1,517

Total	$	4,422	$	2	$	4,424

Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2012

Intangible Assets [Abstract]

Summary of intangible assets with definite lives


	Proprietary Manufacturing Technology			Non-Compete Agreement			Trade Name			Total
Net carrying amount as of December 31, 2009	$	131		$	70		$	87		$	288
Amortization		(131	)		(13	)		(55	)		(199	)

Net carrying amount as of December 31, 2010		—			57			32			89
Amortization		—			(12	)		(32	)		(44	)

Net carrying amount as of December 31, 2011		—			45			—			45
Amortization		—			(13	)		—			(13	)

Net carrying amount as of December 31, 2012	$	—		$	32		$	—		$	32

Estimated future amortization expense related to intangible assets with definite lives


Year	Amortization
2013	$	13
2014		12
2015		7

Total	$	32

Inventories (Tables)

12 Months Ended

Dec. 31, 2012

Inventories [Abstract]

Summary of Inventories


	2012		2011
Raw materials	$	3,066	$	3,233
Work in process		675		509
Finished goods		1,977		2,821

Inventories	$	5,718	$	6,563

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2012

Property and Equipment [Abstract]

Summary of property and equipment


	2012			2011
Machinery, equipment and vehicles	$	7,489		$	6,424
Computer and other office equipment		1,538			1,236
Furniture and fixtures		212			347
Leasehold improvements		165			150
Equipment under capital leases		226			267
Construction in progress		68			207

Total		9,698			8,631
Less accumulated depreciation		(6,268	)		(6,280	)

Property and equipment, net	$	3,430		$	2,351

Accrued Liabilities (Tables)

12 Months Ended

Dec. 31, 2012

Accrued Liabilities [Abstract]

Accrued liabilities


	2012		2011
Accrued commissions	$	1,464	$	1,297
Accrued settlement reserve (current portion)		1,120		704
Accrued bonus		487		162
Other accrued liabilities		483		417
Accrued taxes and value-added taxes payable		366		449
Accrued vacation		349		353
Accrued severance		224		16
Accrued payroll		153		167
Withheld FICA		126		105
Accrued royalty		118		78
Sales/returns allowance—trade		105		40
Accrued non-employee stock options		78		208

Total	$	5,073	$	3,996

Indebtedness (Tables)

12 Months Ended

Dec. 31, 2012

Indebtedness [Abstract]

Long-term debt and capital leases


	2012			2011
Credit facility	$	8,333		$	6,375
Capital leases		103			94

Total debt and capital leases		8,436			6,469
Less: Current maturities		(2,029	)		(1,543	)

Total long-term debt and capital leases	$	6,407		$	4,926

Maturities on long-term debt, including capital lease obligations

Maturities on long-term debt, including capital lease obligations are as follows:


Year	Amount
2014	$	2,032
2015		2,026
2016		2,016
2017		333

Total	$	6,407

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2012

Commitments and Contingencies [Abstract]

Future minimum lease payments under non-cancellable operating leases


Year	Amount
2013	$	583
2014		17

Total	$	600

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Taxes[Abstract]

Detail of deferred tax assets and liabilities


	2012			2011
Deferred tax assets (liabilities):
Net operating loss carryforward	$	22,974		$	20,819
Research and development credit carryforward		3,603			3,597
Equity compensation		4,082			3,473
Intangible assets		757			832
Accruals and reserves		269			295
Inventory		228			271
Fixed assets		(230	)		28
Other, net		2			1

Subtotal		31,685			29,316
Less valuation allowance		(31,685	)		(29,316	)

Total	$	—		$	—

Company's provision for income taxes


	2012			2011			2010
Current income tax expense	$	50		$	31		$	19
Deferred tax benefit		(2,336	)		(2,005	)		(1,118	)
Increase in valuation allowance		2,336			2,005			1,118

Total income tax expense	$	50		$	31		$	19

Difference between effective income tax rates and federal statutory rate


	2012						2011						2010
Federal tax at statutory rate		34.00	%	$	(2,483	)		34.00	%	$	(1,844	)		34.00	%	$	(1,290	)
Federal R&D credit		0.08			(6	)		6.11			(332	)		9.03			(343	)
Valuation allowance		(31.98	)		2,336			(37.09	)		2,012			(29.45	)		1,118
State income taxes		0.67			(49	)		2.90			(157	)		(3.12	)		118
Foreign NOL rate change		1.40			(102	)		—			—			(3.29	)		125
Foreign tax rate differential		(1.94	)		142			(1.49	)		81			(3.63	)		138
Other		(2.91	)		212			(5.00	)		271			(4.04	)		153

Effective tax rate		(0.68	)%	$	50			(0.57	)%	$	31			(0.50	)%	$	19

Equity Compensation Plans (Tables)

12 Months Ended

Dec. 31, 2012

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Activity under the stock based compensation plans


Stock Options	Number of Shares Outstanding			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at January 1, 2012		2,536		$	9.00
Granted		972			7.15
Cancelled or forfeited		(109	)		10.62
Exercised		(227	)		2.90

Outstanding at December 31, 2012		3,172		$	8.81		5.19	$	1,479

Vested and expected to vest		3,071		$	8.86		5.06	$	1,433

Exercisable at December 31, 2012		1,966		$	9.58		3.20	$	971

Restricted Stock	Number of Shares Outstanding			Weighted Average Grant Date Fair Value
Outstanding at January 1, 2012		403		$	7.68
Awarded		293			7.69
Forfeited		(49	)		8.36
Released		(143	)		6.61

Outstanding at December 31, 2012		504		$	7.93


Stock Options	Number of Shares Outstanding			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at January 1, 2011		2,787		$	7.82
Granted		264			12.26
Cancelled or forfeited		(78	)		8.06
Exercised		(437	)		3.63

Outstanding at December 31, 2011		2,536		$	9.00		5.72	$	6,667

Vested and expected to vest		2,514		$	8.98		5.69	$	6,635

Exercisable at December 31, 2011		1,970		$	9.07		4.94	$	5,002


Restricted Stock	Number of Shares Outstanding			Weighted Average Grant Date Fair Value
Outstanding at January 1, 2011		372		$	4.39
Awarded		189			11.61
Forfeited		(38	)		5.75
Released		(120	)		4.27

Outstanding at December 31, 2011		403		$	7.68

Summary of share-based compensation expense related to employee share-based compensation


	2012		2011		2010
Cost of revenue	$	272	$	161	$	146
Research and development expenses		267		474		537
Selling, general and administrative expenses		2,929		2,296		2,070

Total	$	3,468	$	2,931	$	2,753

Assumptions used to calculate fair value of options using Black-Scholes model


	2012	2011	2010
Risk-free interest rate	0.65 - 1.37%	1.59 - 2.78%	1.79 - 2.88%
Expected life of option (years)	5.38 to 7.14	6.00 to 6.25	6.00 to 6.25
Expected volatility of stock	69.00 - 71.00%	71.00 - 72.00%	66.00 - 71.00%
Weighted-average volatility	69.50%	71.58%	69.30%
Dividend yield	0.00%	0.00%	0.00%


Strike price	$	5.91
Contractual term		10.00
Expected volatility of stock		69.60	%
Expected rate of return		1.75	%
Dividend yield		0.00	%

Weighted average estimated fair value per share of the stock options and restricted stock granted


	2012		2011		2010
Stock options	$	4.65	$	8.01	$	3.59
Restricted stock		7.69		11.61		5.69

Assumptions used to estimate fair value of options on the grant date


	2012	2011	2010
Risk-free interest rate	0.65 - 1.37%	1.59 - 2.78%	1.79 - 2.88%
Expected life of option (years)	5.38 to 7.14	6.00 to 6.25	6.00 to 6.25
Expected volatility of stock	69.00 - 71.00%	71.00 - 72.00%	66.00 - 71.00%
Weighted-average volatility	69.50%	71.58%	69.30%
Dividend yield	0.00%	0.00%	0.00%


Strike price	$	5.91
Contractual term		10.00
Expected volatility of stock		69.60	%
Expected rate of return		1.75	%
Dividend yield		0.00	%

Estimated grant date fair value per share of the performance options granted


	Price Target		Fair Value
Tranche 1	$	10.00	$	4.32
Tranche 2		12.50		4.30
Tranche 3		15.00		4.27
Tranche 4		17.50		4.23
Tranche 5		20.00		4.19
Tranche 6		25.00		4.10
Tranche 7		30.00		4.01
Tranche 8		35.00		3.92
Tranche 9		40.00		3.83

Segment and Geographic Information (Tables)

12 Months Ended

Dec. 31, 2012

Segment and Geographic Information [Abstract]

Summary of geographic revenue

Geographic revenue was as follows:


Revenue:	2012		2011		2010
United States	$	52,616	$	48,931	$	47,518
International		17,631		15,471		11,488

Total	$	70,247	$	64,402	$	59,006

Revenue by product

Revenue by product type was as follows:


Revenue:	2012		2011		2010
Open-heart	$	32,880	$	29,202	$	29,024
Minimally Invasive		12,733		14,166		16,110
AtriClip		7,003		5,563		2,384
Total United States		52,616		48,931		47,518
International		17,631		15,471		11,488

Total	$	70,247	$	64,402	$	59,006

Selected Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2012

Selected Quarterly Financial Data [Abstract]

Information of basic and diluted earnings per share


	For the Three Months Ended
	March 31,						June 30,						September 30,						December 31,
	2012			2011			2012			2011			2012			2011			2012			2011
Operating Results:
Revenue	$	17,476		$	15,637		$	18,268		$	16,780		$	16,139		$	15,222		$	18,364		$	16,763
Gross profit		12,752			11,893			12,711			12,278			11,549			11,085			13,002			11,740
Loss from operations		(1,496	)		(1,074	)		(1,320	)		(771	)		(2,529	)		(1,191	)		(1,852	)		(1,695	)
Net loss		(1,620	)		(1,273	)		(1,326	)		(946	)		(2,567	)		(1,156	)		(2,020	)		(2,080	)
Net loss per share (basic and diluted)	$	(0.10	)	$	(0.08	)	$	(0.08	)	$	(0.06	)	$	(0.16	)	$	(0.07	)	$	(0.12	)	$	(0.13	)

Description of Business and Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Accumulated other comprehensive income (loss)
Unrealized Gains (Losses) on Short Term and Long-Term Investments, Beginning	$ 2	$ 0	$ 3
Foreign Currency Translation Adjustment, Beginning	(39)	80	141
Accumulated Other Comprehensive Income (Loss), Beginning	(37)	80	144
Unrealized Gains (Losses) on Short-Term and Long-Term Investments	(1)	2	(3)
Foreign currency translation adjustment	115	(119)	(61)
Accumulated Other Comprehensive Income (Loss)	114	(117)	(64)
Unrealized Gains (Losses) on Short Term and Long-Term Investments, Ending	1	2	0
Foreign Currency Translation Adjustment, Ending	76	(39)	80
Accumulated Other Comprehensive Income (Loss), Ending	$ 77	$ (37)	$ 80

- Definition

Accumulated adjustment, net of tax, that results from the process of translating subsidiary financial statements and foreign equity investments into the reporting currency from the functional currency of the reporting entity, net of reclassification of realized foreign currency translation gains or losses.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e681-108580

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
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-Paragraph 11
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 220
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-Paragraph 10A
-Subparagraph (a)
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 830
-SubTopic 30
-Section 45
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6915805&loc=d3e32022-110900

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-Name Accounting Standards Codification
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-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6450520&loc=d3e32583-110901

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 52
-Paragraph 12, 13
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 45
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 52
-Paragraph 31
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 12
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 17, 18, 19, 22, 23, 24, 25, 26
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e637-108580

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=20435746&loc=SL7669686-108580

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 31
-Article 5

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS115-1/124-1
-Paragraph 15D
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 12
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 14, 17, 26
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

+ Details

- Definition

Net of tax amount of other comprehensive income (loss) attributable to the parent entity.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1A
-Subparagraph (c)(3)
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Paragraph 20
-URI http://asc.fasb.org/extlink&oid=7656940&loc=SL4569643-111683

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 30
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph c(3)
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 29
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

Net of tax amount of unrealized holding gain (loss) before reclassification adjustments and transfers on available-for-sale securities.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 10A
-Subparagraph (e)
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 13
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 17, 22
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph c(3)
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Description of Business and Summary of Significant Accounting Policies (Details Textual) - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Description of Business and Summary of Significant Accounting Policies (Textual) [Abstract]
Foreign currency transaction (losses) gains	$ 115	$ (119)	$ (61)
Description of Business and Summary of Significant Accounting Policies (Additional Textual) [Abstract]
Maturity period of highly liquid investments	3 months
Maturity period of short term investment	1 year
Shipping and handling revenue	$ 723	664	657
Payment terms for end-users	30 days
Payment terms for distributors	60 days
Cost of lending disposable products to direct customers	$ 0
Grant income	$ 409	$ 52	$ 595
Options, restricted stock and performance based shares excluded from calculation of net loss per share	3,676	2,949	3,408
Recognized expense related to stock options and restricted stock	$ 3,468	$ 2,931	$ 2,753
Expense related to re-measurement of fair value of unvested stock options	0	8	19
Income (expense) related to remeasurement of fair value of fully vested stock options	$ 179	$ 23	(165)
Unexercised shares of common stock held by non-employee consultants	38	34
Accrued non-employee stock options	$ 78	$ 208
Subsidiaries [Member]
Description of Business and Summary of Significant Accounting Policies (Textual) [Abstract]
Foreign currency transaction (losses) gains	$ (83)	30	(171)
Maximum [Member]
Description of Business and Summary of Significant Accounting Policies (Textual) [Abstract]
Estimated useful lives of intangible assets	8 years
Minimum [Member]
Description of Business and Summary of Significant Accounting Policies (Textual) [Abstract]
Estimated useful lives of intangible assets	4 years
Machinery, equipment and vehicles [Member] \| Maximum [Member]
Description of Business and Summary of Significant Accounting Policies (Textual) [Abstract]
Estimated useful life by major asset category	7 years
Machinery, equipment and vehicles [Member] \| Minimum [Member]
Description of Business and Summary of Significant Accounting Policies (Textual) [Abstract]
Estimated useful life by major asset category	3 years
Computer and other office Equipment [Member]
Description of Business and Summary of Significant Accounting Policies (Textual) [Abstract]
Estimated useful life by major asset category	3 years
Furniture and fixtures [Member] \| Maximum [Member]
Description of Business and Summary of Significant Accounting Policies (Textual) [Abstract]
Estimated useful life by major asset category	7 years
Furniture and fixtures [Member] \| Minimum [Member]
Description of Business and Summary of Significant Accounting Policies (Textual) [Abstract]
Estimated useful life by major asset category	3 years
Generators [Member]
Description of Business and Summary of Significant Accounting Policies (Textual) [Abstract]
Depreciation	$ 1,081	1,294	$ 1,369
Generators [Member] \| Maximum [Member]
Description of Business and Summary of Significant Accounting Policies (Textual) [Abstract]
Estimated useful life by major asset category	3 years
Generators [Member] \| Minimum [Member]
Description of Business and Summary of Significant Accounting Policies (Textual) [Abstract]
Estimated useful life by major asset category	1 year
Carrying amount of loaned equipment [Member]
Description of Business and Summary of Significant Accounting Policies (Textual) [Abstract]
Net carrying amount of loaned equipment	$ 2,197	$ 1,204

Fair Value (Details) - Fair Value Measurements, Recurring [Member] - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Assets:
Total assets	$ 9,508	$ 11,841
Liabilities:
Derivative instruments	78	208
Total liabilities	78	208
Money market funds [Member]
Assets:
Total assets	5,261	7,417
Commercial paper [Member]
Assets:
Total assets	3,247	400
U.S. government agencies and securities [Member]
Assets:
Total assets	1,000	2,507
Corporate bonds [Member]
Assets:
Total assets		1,517
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets:
Total assets	1,000	2,507
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] \| U.S. government agencies and securities [Member]
Assets:
Total assets	1,000	2,507
Significant Other Observable Inputs (Level 2) [Member]
Assets:
Total assets	8,508	9,334
Significant Other Observable Inputs (Level 2) [Member] \| Money market funds [Member]
Assets:
Total assets	5,261	7,417
Significant Other Observable Inputs (Level 2) [Member] \| Commercial paper [Member]
Assets:
Total assets	3,247	400
Significant Other Observable Inputs (Level 2) [Member] \| Corporate bonds [Member]
Assets:
Total assets		1,517
Significant Other Unobservable Inputs (Level 3) [Member]
Liabilities:
Derivative instruments	78	208
Total liabilities	$ 78	$ 208

Fair Value (Details 1)	12 Months Ended
Fair Value (Details 1)	Dec. 31, 2012	Dec. 31, 2011
Assumptions used for estimating fair value of the Level 3 liabilities
Expected volatility of stock	70.00%	71.00%
Dividend yield	0.00%	0.00%
Maximum [Member]
Assumptions used for estimating fair value of the Level 3 liabilities
Risk-free interest rate	0.74%	0.86%
Expected life of option (years)	5 years 1 month 6 days	5 years 1 month 10 days
Minimum [Member]
Assumptions used for estimating fair value of the Level 3 liabilities
Risk-free interest rate	0.23%	0.12%
Expected life of option (years)	1 year 9 months	11 months 19 days

Fair Value (Details 2) - USD ($) $ in Thousands	12 Months Ended
Fair Value (Details 2) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Level 3 fair value measurements using significant other unobservable inputs for derivative instruments
Beginning Balance	$ 208	$ 268	$ 180
Total gains/losses (realized/unrealized) included in earnings	(179)	(23)	165
Purchases (exercises)	(50)	(55)	(77)
Reclassification from equity to liability when fully vested	99	18
Ending Balance	$ 78	$ 208	$ 268

Fair Value (Details Textual)	12 Months Ended
Fair Value (Details Textual)	Dec. 31, 2010
Fair Value (Textual) [Abstract]
Weighted average estimated volatility rate, Minimum	25.00%
Weighted average estimated volatility rate, Maximum	75.00%

Investments (Details) - USD ($) $ in Thousands	12 Months Ended
Investments (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Summary of short-term investments
Short-term investments	$ 4,247	$ 4,424
Unrealized Gains	1	2
U.S. Government agencies and securities [Member]
Summary of short-term investments
Unrealized Gains	1	1
Commercial paper [Member]
Summary of short-term investments
Unrealized Gains	0	0
Corporate bonds [Member]
Summary of short-term investments
Unrealized Gains		1
Cost Basis [Member]
Summary of short-term investments
Short-term investments	4,246	4,422
Cost Basis [Member] \| U.S. Government agencies and securities [Member]
Summary of short-term investments
Short-term investments	999	2,506
Cost Basis [Member] \| Commercial paper [Member]
Summary of short-term investments
Short-term investments	3,247	400
Cost Basis [Member] \| Corporate bonds [Member]
Summary of short-term investments
Short-term investments		1,516
Fair Value [Member]
Summary of short-term investments
Short-term investments	4,247	4,424
Fair Value [Member] \| U.S. Government agencies and securities [Member]
Summary of short-term investments
Short-term investments	1,000	2,507
Fair Value [Member] \| Commercial paper [Member]
Summary of short-term investments
Short-term investments	$ 3,247	400
Fair Value [Member] \| Corporate bonds [Member]
Summary of short-term investments
Short-term investments		$ 1,517

Investments (Details Textual) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Investments (Textual) [Abstract]
Long-term investments	$ 0	$ 0

Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Summary of intangible assets with definite lives
Net carrying amount	$ 32	$ 45	$ 89	$ 288
Amortization	(13)	(44)	(199)
Proprietary Manufacturing Technology [Member]
Summary of intangible assets with definite lives
Net carrying amount				131
Amortization			(131)
Non-Compete Agreement [Member]
Summary of intangible assets with definite lives
Net carrying amount	32	45	57	70
Amortization	$ (13)	(12)	(13)
Trade Name [Member]
Summary of intangible assets with definite lives
Net carrying amount			32	$ 87
Amortization		$ (32)	$ (55)

Intangible Assets (Details 1) $ in Thousands	Dec. 31, 2012 USD ($)
Estimated future amortization expense related to intangible assets with definite lives
2013	$ 13
2014	12
2015	7
Total	$ 32

Intangible Assets (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Intangible Assets (Textual) [Abstract]
Amortization of intangible assets	$ 13	$ 44	$ 199
Proceeds from sale of intellectual property		300
Gain on sale of intellectual property		300
Developed Technology Rights [Member]
Intangible Assets (Textual) [Abstract]
Proceeds from sale of intellectual property		300
Gain on sale of intellectual property		300
Non-Compete Agreement [Member]
Intangible Assets (Textual) [Abstract]
Amortization of intangible assets	$ 13	12	13
Amortization period	4 years
Trade Name [Member]
Intangible Assets (Textual) [Abstract]
Amortization of intangible assets		$ 32	55
Amortization period	8 years
Proprietary Manufacturing Technology [Member]
Intangible Assets (Textual) [Abstract]
Amortization of intangible assets			$ 131
Amortization period	5 years

Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Summary of Inventories
Raw materials	$ 3,066	$ 3,233
Work in process	675	509
Finished goods	1,977	2,821
Inventories	$ 5,718	$ 6,563

Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Summary of property and equipment
Property and equipment, gross	$ 9,698	$ 8,631
Less accumulated depreciation	(6,268)	(6,280)
Property and equipment, net	3,430	2,351
Machinery, equipment and vehicles [Member]
Summary of property and equipment
Property and equipment, gross	7,489	6,424
Computer and other office equipment [Member]
Summary of property and equipment
Property and equipment, gross	1,538	1,236
Furniture and fixtures [Member]
Summary of property and equipment
Property and equipment, gross	212	347
Leasehold improvements [Member]
Summary of property and equipment
Property and equipment, gross	165	150
Equipment under capital leases [Member]
Summary of property and equipment
Property and equipment, gross	226	267
Construction in progress [Member]
Summary of property and equipment
Property and equipment, gross	$ 68	$ 207

Property and Equipment (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Property and Equipment (Textual) [Abstract]
Property and equipment depreciation expense	$ 1,886	$ 1,878	$ 2,164

Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Accrued liabilities
Accrued commissions	$ 1,464	$ 1,297
Accrued settlement reserve (current portion)	1,120	704
Accrued bonus	487	162
Other accrued liabilities	483	417
Accrued taxes and value-added taxes payable	366	449
Accrued vacation	349	353
Accrued severance	224	16
Accrued payroll	153	167
Withheld FICA	126	105
Accrued royalty	118	78
Sales/returns allowance - trade	105	40
Accrued non-employee stock options	78	208
Total	$ 5,073	$ 3,996

Indebtedness (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011	Mar. 15, 2011
Long-term debt and capital leases
Credit facility	$ 8,333	$ 6,375	$ 2,500
Capital leases	103	94
Total debt and capital leases	8,436	6,469
Less: Current maturities	(2,029)	(1,543)
Total long-term debt and capital leases	$ 6,407	$ 4,926

Indebtedness (Details 1) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Maturities on long-term debt, including capital lease obligations
2014	$ 2,032
2015	2,026
2016	2,016
2017	333
Total long-term debt and capital leases	$ 6,407	$ 4,926

Indebtedness (Details Textual) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
Indebtedness (Details Textual) - USD ($) $ in Thousands	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Sep. 30, 2012	Feb. 02, 2012	Jun. 20, 2011	Mar. 15, 2011	May 31, 2009
Indebtedness (Textual) [Abstract]
Credit facility							$ 7,500	$ 14,000
Modified term loan period		5 years
Amount outstanding under line of credit		$ 8,333	$ 6,375				2,500
Indebtedness (Additional Textual) [Abstract]
Effective date of First Loan Modification Agreement		Nov. 01, 2009
First Modification In Loan Agreement		Mar. 01, 2010
Second Modification In Loan Agreement		Sep. 01, 2010
Revolving credit facility extended period of maturity	2 years
Line of Credit Facility, Frequency of Payments	Monthly
Term loan arrangements					$ 10,000
Repayment of term loan					$ 6,125
Increase to the applicable interest rate		3.00%
Dividends on capital stock		$ 0
Accelerated amortization expense		79
Warrant expense		0	22
Deferred financing cost		74
Outstanding letter of credit cancelled						$ 250
Letter of credit outstanding		$ 0	0
Capital lease expiration period		2016
Cost of assets under lease		$ 226
Accumulated amortization on the capital leases		$ 125
Credit card receivable [Member]
Indebtedness (Textual) [Abstract]
Expiry date for corporate credit card program provider		Jul. 31, 2011
Revolving credit facility [Member]
Indebtedness (Textual) [Abstract]
Credit facility		$ 5,303	8,870				$ 10,000
Revolving credit facility maturity date	Apr. 30, 2012
Revolving credit facility extended maturity date	Apr. 30, 2014
Borrowings under the revolving credit facility		10,000
Term loan [Member]
Indebtedness (Textual) [Abstract]
Credit facility			6,375
Modified term loan period	5 years
Term loan payments	$ 125	$ 167
Interest on the term loan portion accrued		7.60%					6.75%
Accrued interest at a fixed rate					6.75%
Amount outstanding under line of credit		$ 8,333
Current maturities of long-term debt		$ 2,000	$ 1,500
Maximum [Member]
Indebtedness (Textual) [Abstract]
Credit facility of joint venture				$ 12,000
Maximum [Member] \| Revolving credit facility [Member]
Indebtedness (Textual) [Abstract]
Interest on the revolving loan accrued at a fluctuating above the prime rate					1.25%		1.25%
Minimum [Member]
Indebtedness (Textual) [Abstract]
Credit facility of joint venture				$ 10,000
Minimum [Member] \| Revolving credit facility [Member]
Indebtedness (Textual) [Abstract]
Interest on the revolving loan accrued at a fluctuating above the prime rate					0.25%		0.25%

Commitments and Contingencies (Details) $ in Thousands	Dec. 31, 2012 USD ($)
Future minimum lease payments under non-cancellable operating leases
2013	$ 583
2014	17
Total	$ 600

Commitments and Contingencies (Details Textual) € in Thousands	1 Months Ended	3 Months Ended		12 Months Ended				13 Months Ended
	Apr. 30, 2012 Units	Dec. 31, 2010 EUR (€)	Dec. 31, 2010 USD ($)	Dec. 31, 2012 USD ($) Units	Dec. 31, 2011 USD ($)	Dec. 31, 2010 EUR (€)	Dec. 31, 2010 USD ($)	Dec. 31, 2011 Units	Oct. 31, 2010 USD ($)	Dec. 31, 2009 USD ($)
Commitments and Contingencies (Additional Textual) [Abstract]
Operating Lease rent expense				$ 769,000	$ 685,000		$ 668,000
Royalty expense				$ 603,000	$ 505,000		332,000
Operating leases that expire at various terms through				2014
Royalty agreement term				20 years
Purchases of additional units \| Units				40
Total quantity purchased \| Units								56
Actual quantity purchased \| Units				60
Number of radio frequency generators manufacture \| Units	300
Minimum units the company was required to purchase \| Units								40
Distributor earnings		€ 50	$ 65,000			€ 400	528,000
Expense related to the departure of the Company's Chief Financial Officer and Chief Executive Officer				$ 1,600,000
Definitive Stipulation of Settlement agreement									$ 2,000,000	$ 4,350,000
Recorded a liability										2,000,000
Recorded receivable										2,000,000
Parties signed a Definitive Stipulation of Settlement agreement				October, 2010
Final approval of the settlement by court									$ 2,750,000
Operating expenses related to investigation										$ 3,956,000
Interest payment term				5 years
Settlement agreement payments (including interest)				$ 2,050,000
Liability related settlement				2,229,000
Liability related settlement current				1,120,000
Chief Executive Officer [Member]
Commitments and Contingencies (Textual) [Abstract]
Employee salary and compensation				225,000
Chief Financial Officer [Member]
Commitments and Contingencies (Textual) [Abstract]
Employee salary and compensation				$ 250,000
Minimum [Member]
Commitments and Contingencies (Textual) [Abstract]
Royalty rates				1.50%
Royalty payments			50				50
Maximum [Member]
Commitments and Contingencies (Textual) [Abstract]
Royalty rates				5.00%
Royalty payments			$ 2,000				$ 2,000

Income Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Detail of deferred tax assets and liabilities
Net operating loss carryforward	$ 22,974	$ 20,819
Research and development credit carryforward	3,603	3,597
Equity compensation	4,082	3,473
Intangible assets	757	832
Accruals and reserves	269	295
Inventory	228	271
Fixed assets	(230)	28
Other, net	2	1
Subtotal	31,685	29,316
Less valuation allowance	(31,685)	(29,316)
Total

Income Taxes (Details 1) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details 1) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Company's provision for income taxes
Current income tax expense	$ 50	$ 31	$ 19
Deferred tax benefit	(2,336)	(2,005)	(1,118)
Increase in valuation allowance	2,336	2,005	1,118
Total income tax expense	$ 50	$ 31	$ 19

- Definition

The component of income tax expense for the period representing amounts of income taxes paid or payable (or refundable) for the period for all income tax obligations as determined by applying the provisions of relevant enacted tax laws to relevant amounts of taxable Income or Loss from continuing operations.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Current Tax Expense (or Benefit)
-URI http://asc.fasb.org/extlink&oid=6509736

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.7)
-URI http://asc.fasb.org/extlink&oid=6889476&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 45
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 6
-Section I
-Subsection 7

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 289
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

The component of income tax expense for the period representing the increase (decrease) in the entity's deferred tax assets and liabilities pertaining to continuing operations.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Deferred Tax Expense (or Benefit)
-URI http://asc.fasb.org/extlink&oid=6510177

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.7)
-URI http://asc.fasb.org/extlink&oid=6889476&loc=d3e330036-122817

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 289
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 45
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 6
-Section I
-Subsection 7

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 95
-Paragraph 28
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Income Taxes (Details 2) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details 2) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Difference between effective income tax rates and federal statutory rate
Federal tax at statutory rate, Rate	34.00%	34.00%	34.00%
Federal tax at statutory rate	$ (2,483)	$ (1,844)	$ (1,290)
Federal R&D credit, Rate	0.08%	6.11%	9.03%
Federal R&D credit	$ (6)	$ (332)	$ (343)
Valuation allowance, Rate	(31.98%)	(37.09%)	(29.45%)
Valuation allowance	$ 2,336	$ 2,012	$ 1,118
State income taxes, Rate	0.67%	2.90%	(3.12%)
State income taxes	$ (49)	$ (157)	$ 118
Foreign NOL rate change, Rate	1.40%		(3.29%)
Foreign NOL rate change	$ (102)		$ 125
Foreign tax rate differential, Rate	(1.94%)	(1.49%)	(3.63%)
Foreign tax rate differential	$ 142	$ 81	$ 138
Other, Rate	(2.91%)	(5.00%)	(4.04%)
Other	$ 212	$ 271	$ 153
Effective tax rate	(0.68%)	(0.57%)	(0.50%)
Effective tax rate, Value	$ 50	$ 31	$ 19

Income Taxes (Details Textual) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details Textual) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Income Taxes (Textual) [Abstract]
Research and development credit carryforward	$ 3,603	$ 3,597
Pre-tax book loss	(7,484)	(5,425)	$ (3,773)
Atricure and Subsidiary [Member]
Income Taxes (Textual) [Abstract]
Pre-tax book loss	(5,909)	(4,530)	(2,240)
Atricure Europe [Member]
Income Taxes (Textual) [Abstract]
Pre-tax book loss	(1,575)	$ (895)	$ (1,533)
Federal [Member]
Income Taxes (Textual) [Abstract]
Research and development credit carryforward	$ 3,603
Federal research and development credit carryforward expiry	2022
Federal [Member] \| 2021 [Member]
Income Taxes (Textual) [Abstract]
Operating loss carryforward	$ 63,807
Operating loss carryforward, expiry date	begin to expire in 2021
State [Member]
Income Taxes (Textual) [Abstract]
Operating loss carryforward	$ 26,875
State [Member] \| Maximum [Member]
Income Taxes (Textual) [Abstract]
State Operating loss carryforward expiry date	20 years
State [Member] \| Minimum [Member]
Income Taxes (Textual) [Abstract]
State Operating loss carryforward expiry date	5 years
Foreign [Member] \| 2016 [Member]
Income Taxes (Textual) [Abstract]
Operating loss carryforward	$ 8,613
Operating loss carryforward, expiry date	begin to expire in 2016

Concentrations (Details) - USD ($) $ in Thousands	12 Months Ended
Concentrations (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Concentrations (Textual) [Abstract]
Percentage of total net revenue derived from top ten customers	19.60%	20.90%	19.40%
Revenue accounted for customers	10.00%
Cash and cash equivalents balance in excess of FDIC limits	$ 10,835

Employee Benefit Plans (Details) - USD ($) $ in Thousands	12 Months Ended
Employee Benefit Plans (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Employee Benefit Plans (Textual) [Abstract]
Contribution by eligible employees	$ 17
Contribution by participants over age 50	$ 22
Employee contribution percent	25.00%
Maximum percentage of employee contribution to the plan	6.00%
Company's matching contribution	$ 234	$ 221
Discretionary contributions made	$ 0	$ 0	$ 0

Equity Compensation Plans (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Activity under the stock based compensation plans
Beginning balance, Number of Shares Outstanding, Stock Options	2,536	2,787
Beginning balance, Weighted Average Exercise Price, Stock Options	$ 9.00	$ 7.82
Granted, Number of Shares Outstanding, Stock Options	972	264
Granted, Weighted Average Exercise Price, Stock Options	$ 7.15	$ 12.26
Cancelled or forfeited, Number of Shares Outstanding, Stock Options	(109)	(78)
Cancelled or Forfeited, Weighted Average Exercise Price, Stock Options	$ 10.62	$ 8.06
Exercised, Number of Shares Outstanding, Stock Options	(227)	(437)
Exercised, Period Weighted Average Exercise Price, Stock Options	$ 2.90	$ 3.63
Ending balance, Number of Shares Outstanding, Stock Options	3,172	2,536	2,787
Ending balance, Weighted Average Exercise Price, Stock Options	$ 8.81	$ 9.00	$ 7.82
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2	5 years 2 months 9 days	5 years 8 months 19 days
Outstanding at December 31, Aggregate Intrinsic Value, Stock Options	$ 1,479	$ 6,667
Vested and expected to vest, Number of Shares Outstanding, Stock Options	3,071	2,514
Vested And expected to vest, Weighted Average Exercise Price, Stock Options	$ 8.86	$ 8.98
Vested and expected to vest, Weighted Average Remaining Contractual Term, Stock Options	5 years 22 days	5 years 8 months 9 days
Vested and expected to vest, Aggregate Intrinsic Value, Stock Options	$ 1,433	$ 6,635
Exercisable at December 31, Number of Shares Outstanding, Stock Options	1,966	1,970
Exercisable at December 31, Weighted Average Exercise Price, Stock Options	$ 9.58	$ 9.07
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1	3 years 2 months 12 days	4 years 11 months 9 days
Exercisable at December 31, Aggregate Intrinsic Value, Stock Options	$ 971	$ 5,002
Restricted Stock [Member]
Activity under the stock based compensation plans
Beginning balance, Number of Shares Outstanding	403	372
Beginning balance, Weighted Average Grant Date Fair Value	$ 7.68	$ 4.39
Awarded, Number of Shares Outstanding	293	189
Awarded, Weighted Average Grant Date Fair Value	$ 7.69	$ 11.61	$ 5.69
Forfeited, Number of Shares Outstanding	(49)	(38)
Forfeited, Weighted Average Grant Date Fair Value	$ 8.36	$ 5.75
Released, Number of Shares Outstanding	(143)	(120)
Released, Weighted Average Grant Date Fair Value	$ 6.61	$ 4.27
Ending balance, Number of Shares Outstanding	504	403	372
Ending balance, Weighted Average Grant Date Fair Value	$ 7.93	$ 7.68	$ 4.39

Equity Compensation Plans (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Summary of share-based compensation expense related to employee share-based compensation
Total share-based compensation expense related to employees	$ 3,468	$ 2,931	$ 2,753
Cost of revenue [Member]
Summary of share-based compensation expense related to employee share-based compensation
Total share-based compensation expense related to employees	272	161	146
Research and development expenses [Member]
Summary of share-based compensation expense related to employee share-based compensation
Total share-based compensation expense related to employees	267	474	537
Selling, general and administrative expenses [Member]
Summary of share-based compensation expense related to employee share-based compensation
Total share-based compensation expense related to employees	$ 2,929	$ 2,296	$ 2,070

- Definition

Represents the expense recognized during the period arising from equity-based compensation arrangements (for example, shares of stock, unit, stock options or other equity instruments) with employees, directors and certain consultants qualifying for treatment as employees.

+ References + Details

Equity Compensation Plans (Details 2)	12 Months Ended
Equity Compensation Plans (Details 2)	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Assumptions used to estimate fair value of options on the grant date using Black-Scholes model
Weighted-average volatility	69.50%	71.58%	69.30%
Dividend yield	0.00%	0.00%	0.00%
Maximum [Member]
Assumptions used to estimate fair value of options on the grant date using Black-Scholes model
Risk free interest rate	1.37%	2.78%	2.88%
Expected life of option (years)	7 years 1 month 21 days	6 years 3 months	6 years 3 months
Expected volatility of stock	71.00%	72.00%	71.00%
Minimum [Member]
Assumptions used to estimate fair value of options on the grant date using Black-Scholes model
Risk free interest rate	0.65%	1.59%	1.79%
Expected life of option (years)	5 years 4 months 17 days	6 years	6 years
Expected volatility of stock	69.00%	71.00%	66.00%

Equity Compensation Plans (Details 3) - $ / shares	12 Months Ended
Equity Compensation Plans (Details 3) - $ / shares	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Weighted average estimated fair value per share of the stock options and restricted stock granted
Weighted average estimated grant date fair value per share of the stock options granted	$ 4.65	$ 8.01	$ 3.59
Restricted Stock [Member]
Weighted average estimated fair value per share of the stock options and restricted stock granted
Weighted average estimated grant date fair value per share of the restricted stock granted	$ 7.69	$ 11.61	$ 5.69

Equity Compensation Plans (Details 4) - $ / shares	12 Months Ended
Equity Compensation Plans (Details 4) - $ / shares	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Assumptions used to estimate fair value of options on the grant date using Monte Carlo simulation
Dividend yield	0.00%	0.00%	0.00%
Performance Shares [Member]
Assumptions used to estimate fair value of options on the grant date using Monte Carlo simulation
Strike price	$ 5.91
Contractual term	10 years
Expected volatility of stock	69.60%
Expected rate of return	1.75%
Dividend yield	0.00%

Equity Compensation Plans (Details 5) - $ / shares	12 Months Ended
Equity Compensation Plans (Details 5) - $ / shares	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Estimated grant date fair value per share of the performance options granted
Fair Value	$ 4.65	$ 8.01	$ 3.59
Tranche 1 [Member]
Estimated grant date fair value per share of the performance options granted
Price Target	10.00
Fair Value	4.32
Tranche 2 [Member]
Estimated grant date fair value per share of the performance options granted
Price Target	12.50
Fair Value	4.30
Tranche 3 [Member]
Estimated grant date fair value per share of the performance options granted
Price Target	15.00
Fair Value	4.27
Tranche 4 [Member]
Estimated grant date fair value per share of the performance options granted
Price Target	17.50
Fair Value	4.23
Tranche 5 [Member]
Estimated grant date fair value per share of the performance options granted
Price Target	20.00
Fair Value	4.19
Tranche 6 [Member]
Estimated grant date fair value per share of the performance options granted
Price Target	25.00
Fair Value	4.10
Tranche 7 [Member]
Estimated grant date fair value per share of the performance options granted
Price Target	30.00
Fair Value	4.01
Tranche 8 [Member]
Estimated grant date fair value per share of the performance options granted
Price Target	35.00
Fair Value	3.92
Tranche 9 [Member]
Estimated grant date fair value per share of the performance options granted
Price Target	40.00
Fair Value	$ 3.83

Equity Compensation Plans (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended		12 Months Ended
	Nov. 30, 2012	Sep. 30, 2012	Jun. 30, 2012	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Equity Compensation Plans (Textual) [Abstract]
Recognized expense related to stock options and restricted stock				$ 3,468	$ 2,931	$ 2,753
Performance options awarded to President and CEO				972,000	264,000
Recognized expense related to performance options				$ 3,468	$ 2,939	2,772
Performance options exercisable				1,966,000	1,970,000
Unrecognized compensation costs related to non-vested share-based compensation arrangements with performance shares				$ 9,118
Liability included in accrued liabilities				78	$ 208
Equity Compensation Plans (Additional Textual) [Abstract]
Cumulative effect of error included in Operating Expenses				$ 0
Restricted stock awards granted annual vest rate				25.00%
Total intrinsic value of options exercised				$ 1,338	3,403	312
Tax benefit recognized				0	0	0
Cash proceeds				$ 659	$ 1,588	353
Incremental compensation expenses		$ 522	$ 396
Offering period				6 months
Description of participants purchase limit				Participants may not purchase more than $25 of the Company’s common stock in a calendar year and, effective January 1, 2009, may not purchase more than 1.5 shares during an offering period.
Participants purchase limit shares				1.5
Nonstatutory common stock options vest period maximum				4 years
Stock options granted to non-employee consultants vesting period				4 years
Non-employee Vesting stock rate				25.00%
Non-employee consultant stock options granted				0	0
Expense related to re-measurement of fair value of unvested stock options				$ 0	$ 8	19
Income (expense)				$ 179	$ 23	(165)
Fully vested stock options to acquire				38,000	34,000
Common Stock, Shares, Issued				16,896,000	16,369,000
Maximum [Member]
Equity Compensation Plans (Textual) [Abstract]
Weighted average period of recognizing cost				5 years 2 months 19 days
Minimum [Member]
Equity Compensation Plans (Textual) [Abstract]
Weighted average period of recognizing cost				2 years 5 months 12 days
2001 Plan [Member]
Equity Compensation Plans (Textual) [Abstract]
Options granted, expiry period				10 years
Expiry of options from the date of grant				10 years
2005 Plan [Member]
Equity Compensation Plans (Textual) [Abstract]
Options granted, expiry period				10 years
Common stock reserved for issuance				6,344,000	532,000
Percentage of outstanding shares of common stock on the first day				3.25%
Outstanding shares of common stock on the first day				825,000
Additional shares authorized for issuance				6,344,000	532,000
Outstanding shares authorized on that date					3.25%
Shares available for future grants				432,000
Expiry of options from the date of grant				10 years
Stock Options [Member]
Equity Compensation Plans (Textual) [Abstract]
Exercisable period beginning				1 year
Recognized expense related to stock options and restricted stock				$ 3,211
Stock options compensation costs				$ 5,571
Weighted average period of recognizing cost				3 years 2 months 12 days
Stock Options [Member] \| 2001 Plan [Member]
Equity Compensation Plans (Textual) [Abstract]
Options granted exercisable cumulative				25.00%
Stock Options [Member] \| 2005 Plan [Member]
Equity Compensation Plans (Textual) [Abstract]
Options granted exercisable cumulative				25.00%
Restricted Stock [Member]
Equity Compensation Plans (Textual) [Abstract]
Total fair value of restricted stock vested				$ 1,292	$ 1,457	981
Recognized expense related to stock options and restricted stock					2,617	2,178
Restricted stock compensation costs				3,547
Unrecognized compensation costs related to non-vested performance options				$ 3,547
Weighted average period of recognizing cost				2 years 8 months 12 days
Restricted Stock [Member] \| 2005 Plan [Member]
Equity Compensation Plans (Textual) [Abstract]
Options granted from the 2005 Plan generally vest				4 years
Performance Shares [Member]
Equity Compensation Plans (Textual) [Abstract]
Options granted, expiry period				10 years
Total fair value of performance shares vested				$ 99	1,243	0
Recognized expense related to stock options and restricted stock				0	$ 40	380
Restricted stock compensation costs				$ 787
Performance options awarded to President and CEO	225,000
Expiry of options from the date of grant				10 years
Number of shares options vest in				25,000
Period of considering closing price of common stock				30 days
Price by which volume adjusted weighted average closing price exceeds under vesting condition 1				$ 10.00
Price by which volume adjusted weighted average closing price exceeds under vesting condition 2				12.50
Price by which volume adjusted weighted average closing price exceeds under vesting condition 3				15.00
Price by which volume adjusted weighted average closing price exceeds under vesting condition 4				17.50
Price by which volume adjusted weighted average closing price exceeds under vesting condition 5				20.00
Price by which volume adjusted weighted average closing price exceeds under vesting condition 6				25.00
Price by which volume adjusted weighted average closing price exceeds under vesting condition 7				30.00
Price by which volume adjusted weighted average closing price exceeds under vesting condition 8				35.00
Price by which volume adjusted weighted average closing price exceeds under vesting condition 9				$ 40.00
Recognized expense related to performance options				$ 36
Unrecognized compensation costs related to non-vested performance options				$ 787
Performance options exercisable				0
Performance shares (gross) released				10,000	111,000
Unrecognized compensation costs related to non-vested share-based compensation arrangements with performance shares				$ 0
ESPP [Member]
Equity Compensation Plans (Textual) [Abstract]
Recognized expense related to stock options and restricted stock				$ 257	$ 273	$ 194
Company's common stock may be purchased at a discount				15.00%
Shares available for sale under the ESPP increased				2.00%
Outstanding shares of common stock exceed				600,000
Shares available for future issuance under the ESPP				774,000
ESPP [Member] \| Maximum [Member]
Equity Compensation Plans (Textual) [Abstract]
Participants purchase limit value				$ 25
Non-Employee Stock Compensation [Member]
Equity Compensation Plans (Textual) [Abstract]
Liability included in accrued liabilities				$ 78	$ 208

Segment and Geographic Information (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Summary of geographic revenue
Revenue	$ 18,364	$ 16,139	$ 18,268	$ 17,476	$ 16,763	$ 15,222	$ 16,780	$ 15,637	$ 70,247	$ 64,402	$ 59,006
United States [Member]
Summary of geographic revenue
Revenue									52,616	48,931	47,518
International [Member]
Summary of geographic revenue
Revenue									$ 17,631	$ 15,471	$ 11,488

Segment and Geographic Information (Details 1) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Schedule of Revenue By Product Type [Abstract]
Revenue	$ 18,364	$ 16,139	$ 18,268	$ 17,476	$ 16,763	$ 15,222	$ 16,780	$ 15,637	$ 70,247	$ 64,402	$ 59,006
Open-heart [Member]
Schedule of Revenue By Product Type [Abstract]
Revenue									32,880	29,202	29,024
Minimally Invasive [Member]
Schedule of Revenue By Product Type [Abstract]
Revenue									12,733	14,166	16,110
ArtiClip [Member]
Schedule of Revenue By Product Type [Abstract]
Revenue									7,003	5,563	2,384
United States [Member]
Schedule of Revenue By Product Type [Abstract]
Revenue									52,616	48,931	47,518
International [Member]
Schedule of Revenue By Product Type [Abstract]
Revenue									$ 17,631	$ 15,471	$ 11,488

Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Operating Results
Revenue	$ 18,364	$ 16,139	$ 18,268	$ 17,476	$ 16,763	$ 15,222	$ 16,780	$ 15,637	$ 70,247	$ 64,402	$ 59,006
Gross profit	13,002	11,549	12,711	12,752	11,740	11,085	12,278	11,893	50,014	46,996	45,388
Loss from operations	(1,852)	(2,529)	(1,320)	(1,496)	(1,695)	(1,191)	(771)	(1,074)	(7,198)	(4,731)	(3,192)
Net loss	$ (2,020)	$ (2,567)	$ (1,326)	$ (1,620)	$ (2,080)	$ (1,156)	$ (946)	$ (1,273)	$ (7,534)	$ (5,456)	$ (3,792)
Net loss per share (basic and diluted)	$ (0.12)	$ (0.16)	$ (0.08)	$ (0.10)	$ (0.13)	$ (0.07)	$ (0.06)	$ (0.08)

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Net Income
-URI http://asc.fasb.org/extlink&oid=6518256

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.19)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.18)
-URI http://asc.fasb.org/extlink&oid=6880815&loc=d3e20235-122688

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.22)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Other Comprehensive Income
-URI http://asc.fasb.org/extlink&oid=6519514

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e565-108580

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 10, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph A7
-Appendix A

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 87-21
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 19
-Article 5

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 95
-Paragraph 28, 29, 30
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 20
-Article 9

+ Details

Subsequent Event (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Subsequent Event (Textual) [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Issuance of Equity [Member]
Subsequent Event (Textual) [Abstract]
Common stock shares sold	4.0
Common stock, par value	$ 0.001
Common stock shares price	$ 7.25
Proceeds from sale of common stock	$ 27.1

Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Allowance for doubtful accounts receivable [Member]
Valuation and Qualifying Accounts
Beginning Balance	$ 37	$ 9	$ 24
Valuation and Qualifying Accounts, Additions	75	29	8
Valuation and Qualifying Accounts, Deductions	63	1	23
Ending Balance	49	37	9
Reserve for sales returns and allowances [Member]
Valuation and Qualifying Accounts
Beginning Balance	40	53	3
Valuation and Qualifying Accounts, Additions	262	52	55
Valuation and Qualifying Accounts, Deductions	197	65	3
Ending Balance	105	40	53
Allowance for inventory valuation [Member]
Valuation and Qualifying Accounts
Beginning Balance	206	32	183
Valuation and Qualifying Accounts, Additions	381	311	47
Valuation and Qualifying Accounts, Deductions	320	137	198
Ending Balance	267	206	32
Valuation allowance for deferred tax assets [Member]
Valuation and Qualifying Accounts
Beginning Balance	29,316	27,312	26,194
Valuation and Qualifying Accounts, Additions	2,369	2,004	1,118
Valuation and Qualifying Accounts, Deductions
Ending Balance	$ 31,685	$ 29,316	$ 27,312