Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 04, 2015 | Aug. 04, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 4, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | IVAC | |
Entity Registrant Name | INTEVAC INC | |
Entity Central Index Key | 1,001,902 | |
Current Fiscal Year End Date | --01-03 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 22,135,828 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 04, 2015 | Jan. 03, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 16,217 | $ 21,482 |
Short-term investments | 31,539 | 29,598 |
Trade and other accounts receivable, net of allowances of $0 at both July 4, 2015 and at January 3, 2015 | 11,363 | 12,087 |
Inventories | 18,517 | 19,212 |
Prepaid expenses and other current assets | 1,728 | 1,727 |
Total current assets | 79,364 | 84,106 |
Property, plant and equipment, net | 12,360 | 12,826 |
Long-term investments | 9,264 | 17,542 |
Restricted cash | 1,780 | 1,780 |
Intangible assets, net of amortization of $4,848 at July 4, 2015 and $4,421 at January 3, 2015 | 3,539 | 3,966 |
Deferred income taxes and other long-term assets | 426 | 55 |
Total assets | 106,733 | 120,275 |
Current liabilities: | ||
Accounts payable | 4,169 | 4,640 |
Accrued payroll and related liabilities | 3,949 | 3,977 |
Other accrued liabilities | 6,249 | 8,277 |
Customer advances | 557 | 2,551 |
Total current liabilities | 14,924 | 19,445 |
Other long-term liabilities | 2,586 | 2,200 |
Stockholders' equity: | ||
Common stock, $0.001 par value | 22 | 23 |
Additional paid-in capital | 164,035 | 161,271 |
Treasury stock, 2,998 shares at July 4, 2015 and 1,426 shares at January 3, 2015 | (19,268) | (9,989) |
Accumulated other comprehensive income | 609 | 619 |
Accumulated deficit | (56,175) | (53,294) |
Total stockholders' equity | 89,223 | 98,630 |
Total liabilities and stockholders' equity | $ 106,733 | $ 120,275 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Jul. 04, 2015 | Jan. 03, 2015 |
Net of allowances of trade, note and other accounts receivable | $ 0 | $ 0 |
Net of amortization of intangible assets | $ 4,848 | $ 4,421 |
Common stock, par value | $ 0.001 | $ 0.001 |
Treasury Stock, shares | 2,998 | 1,426 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Net revenues: | ||||
Systems and components | $ 18,646 | $ 12,038 | $ 36,728 | $ 25,358 |
Technology development | 1,812 | 2,677 | 3,615 | 6,372 |
Total net revenues | 20,458 | 14,715 | 40,343 | 31,730 |
Cost of net revenues: | ||||
Systems and components | 11,487 | 7,540 | 23,072 | 17,276 |
Technology development | 1,165 | 1,964 | 2,544 | 4,433 |
Total cost of net revenues | 12,652 | 9,504 | 25,616 | 21,709 |
Gross profit | 7,806 | 5,211 | 14,727 | 10,021 |
Operating expenses: | ||||
Research and development | 2,947 | 4,558 | 7,555 | 8,831 |
Selling, general and administrative | 4,576 | 5,899 | 9,829 | 11,160 |
Total operating expenses | 7,523 | 10,457 | 17,384 | 19,991 |
Income (loss) from operations | 283 | (5,246) | (2,657) | (9,970) |
Interest income and other, net | (13) | 120 | 66 | 192 |
Income (loss) before income taxes | 270 | (5,126) | (2,591) | (9,778) |
Provision for (benefit from) income taxes | 258 | (119) | 290 | (250) |
Net income (loss) | $ 12 | $ (5,007) | $ (2,881) | $ (9,528) |
Net income (loss) per share: | ||||
Basic and diluted | $ 0 | $ (0.21) | $ (0.13) | $ (0.40) |
Weighted average common shares outstanding: | ||||
Basic | 22,630 | 23,927 | 22,929 | 23,892 |
Diluted | 22,912 | 23,927 | 22,929 | 23,892 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Net income (loss) | $ 12 | $ (5,007) | $ (2,881) | $ (9,528) |
Other comprehensive income (loss), before tax: | ||||
Change in unrealized net gain on available-for-sale investments | (4) | (11) | 25 | (6) |
Foreign currency translation gains (losses) | (35) | 15 | (35) | (16) |
Other comprehensive income (loss), before tax | (39) | 4 | (10) | (22) |
Income tax benefit related to items in other comprehensive income | 0 | 0 | 0 | 0 |
Net current-period other comprehensive income (loss) | (39) | 4 | (10) | (22) |
Comprehensive loss | $ (27) | $ (5,003) | $ (2,891) | $ (9,550) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 04, 2015 | Jun. 28, 2014 | |
Operating activities | ||
Net loss | $ (2,881) | $ (9,528) |
Adjustments to reconcile net loss to net cash and cash equivalents provided by (used in) operating activities: | ||
Depreciation and amortization | 2,324 | 2,336 |
Net amortization of investment premiums and discounts | 200 | 358 |
Equity-based compensation | 1,663 | 1,363 |
Change in the fair value of acquisition-related contingent consideration | (200) | 97 |
Deferred income taxes | (10) | (316) |
Loss on disposal of equipment | 91 | 0 |
Changes in operating assets and liabilities | (1,039) | 3,066 |
Total adjustments | 3,029 | 6,904 |
Net cash and cash equivalents provided by (used in) operating activities | 148 | (2,624) |
Investing activities | ||
Purchases of investments | (16,097) | (23,878) |
Proceeds from sales and maturities of investments | 20,200 | 35,076 |
Increase in restricted cash | 0 | (1,000) |
Proceeds from sale of equipment | 11 | 0 |
Purchases of leasehold improvements and equipment | (1,534) | (2,240) |
Net cash and cash equivalents provided by investing activities | 2,580 | 7,958 |
Financing activities | ||
Net proceeds from issuance of common stock | 910 | 1,178 |
Common stock repurchases | (8,868) | (1,559) |
Net cash and cash equivalents used in financing activities | (7,958) | (381) |
Effect of exchange rate changes on cash and cash equivalents | (35) | (15) |
Net increase (decrease) in cash and cash equivalents | (5,265) | 4,938 |
Cash and cash equivalents at beginning of period | 21,482 | 20,121 |
Cash and cash equivalents at end of period | $ 16,217 | $ 25,059 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jul. 04, 2015 | |
Basis of Presentation | 1. Basis of Presentation In the opinion of management, the unaudited interim condensed consolidated financial statements of Intevac, Inc. and its subsidiaries (Intevac or the Company) included herein have been prepared on a basis consistent with the January 3, 2015 audited consolidated financial statements and include all material adjustments, consisting of normal recurring adjustments, necessary to fairly present the information set forth therein. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in Intevac’s Annual Report on Form 10-K for the fiscal year ended January 3, 2015 (“2014 Form 10-K”). Intevac’s results of operations for the six months ended July 4, 2015 are not necessarily indicative of future operating results. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make judgments, estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ materially from those estimates. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jul. 04, 2015 | |
Recent Accounting Pronouncements | 2. Recent Accounting Pronouncements In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-05, “Customers’ Accounting for Fees Paid in a Cloud Computing Arrangement,” which provides guidance in evaluating whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the software license element of the arrangement should be accounted for as an acquisition of a software license. If the arrangement does not contain a software license, it should be accounted for as a service contract. This ASU will be effective for Intevac in the first quarter of fiscal 2016 and may be adopted either retrospectively or prospectively. We are currently evaluating the impact this ASU will have on our consolidated financial statements. In February 2015, the FASB issued ASU No. 2015-02, “Consolidations (Topic 810): Amendments to the Consolidation Analysis”, which amends current consolidation guidance including changes to both the variable and voting interest models used by companies to evaluate whether an entity should be consolidated. The amendments in this ASU will be effective for Intevac in the first quarter of fiscal 2016, with early adoption permitted. The adoption of this ASU will not have any effect on our consolidated financial position, results of operations or cash flows. In January 2015, the FASB issued ASU No. 2015-01, “Income Statement – Extraordinary and Unusual Items (Subtopic 225-20),” which simplifies income statement presentation by eliminating the concept of extraordinary items. This ASU will be effective for Intevac in the first quarter of fiscal 2016, with early adoption permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The adoption of this ASU will not have any effect on our consolidated financial position, results of operations or cash flows. |
Inventories
Inventories | 6 Months Ended |
Jul. 04, 2015 | |
Inventories | 3. Inventories Inventories are stated at the lower of average cost or market and consist of the following: July 4, January 3, 2015 2015 (In thousands) Raw materials $ 11,071 $ 10,684 Work-in-progress 2,076 2,299 Finished goods 5,370 6,229 $ 18,517 $ 19,212 Finished goods inventory consists primarily of completed systems at customer sites that are undergoing installation and acceptance testing and evaluation inventory. |
Equity-Based Compensation
Equity-Based Compensation | 6 Months Ended |
Jul. 04, 2015 | |
Equity-Based Compensation | 4. Equity-Based Compensation At July 4, 2015, Intevac had equity-based awards outstanding under the 2012 Equity Incentive Plan and the 2004 Equity Incentive Plan (the “Plans”) and the 2003 Employee Stock Purchase Plan (the “ESPP”). Intevac’s stockholders approved all of these plans. The Plans permit the grant of incentive or non-statutory stock options, restricted stock, stock appreciation rights, restricted stock units (“RSUs” also referred to as “performance units”) and performance shares. The ESPP provides that eligible employees may purchase Intevac’s common stock through payroll deductions at a price equal to 85% of the lower of the fair market value at the beginning of the applicable offering period or at the end of each applicable purchase interval. Offering periods are generally two years in length, and consist of a series of six-month purchase intervals. Eligible employees may join the ESPP at the beginning of any six-month purchase interval. Under the terms of the ESPP, employees can choose to have up to 15% of their base earnings withheld to purchase Intevac common stock. Compensation Expense The effect of recording equity-based compensation for the three and six months ended July 4, 2015 and June 28, 2014 was as follows: Three Months Ended Six Months Ended July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 (In thousands) Equity-based compensation by type of award: Stock options $ 125 $ 153 $ 442 $ 394 RSUs 395 376 735 668 Employee stock purchase plan 280 137 486 301 Total equity-based compensation $ 800 $ 666 $ 1,663 $ 1,363 Equity-based compensation expense is based on awards ultimately expected to vest and such amount has been reduced for estimated forfeitures. Forfeitures were estimated based on Intevac’s historical experience, which Intevac believes to be indicative of Intevac’s future experience. Stock Options and ESPP The fair value of stock options and ESPP awards is estimated at the grant date using the Black-Scholes option valuation model. The determination of fair value of stock options and ESPP awards on the date of grant using an option-pricing model is affected by Intevac’s stock price as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, our expected stock price volatility over the term of the awards and actual employee stock option exercise behavior. Option activity as of July 4, 2015 and changes during the six months ended July 4, 2015 were as follows: Shares Weighted Average Options outstanding at January 3, 2015 2,584,935 $ 8.26 Options granted 416,375 $ 5.55 Options cancelled and forfeited (316,349 ) $ 7.78 Options exercised (38,521 ) $ 4.38 Options outstanding at July 4, 2015 2,646,440 $ 7.94 Vested and expected to vest at July 4, 2015 2,464,503 $ 8.08 Options exercisable at July 4, 2015 1,510,867 $ 9.25 Intevac issued 201,000 shares under the ESPP during the six months ended July 4, 2015. Intevac estimated the weighted-average fair value of stock options and employee stock purchase rights using the following weighted-average assumptions: Three Months Ended Six Months Ended July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Stock Options: Weighted-average fair value of grants per share $ 2.05 $ 3.02 $ 2.07 $ 3.14 Expected volatility 46.13 % 52.11 % 46.26 % 52.38 % Risk free interest rate 1.44 % 1.30 % 1.43 % 1.36 % Expected term of options (in years) 4.0 4.2 4.0 4.3 Dividend yield None None None None Six Months Ended July 4, 2015 June 28, 2014 Stock Purchase Rights: Weighted-average fair value of grants per share $ 2.26 $ 2.15 Expected volatility 44.05 % 43.40 % Risk free interest rate 0.39 % 0.11 % Expected term of purchase rights (in years) 1.22 0.74 Dividend yield None None The computation of the expected volatility assumptions used in the Black-Scholes calculations for new stock option grants and purchase rights is based on the historical volatility of Intevac’s stock price, measured over a period equal to the expected term of the stock option grant or purchase right. The risk-free interest rate is based on the yield available on U.S. Treasury Strips with an equivalent remaining term. The expected term of employee stock options represents the weighted-average period that the stock options are expected to remain outstanding and was determined based on historical experience of similar awards, giving consideration to the contractual terms of the equity-based awards and vesting schedules. The expected term of purchase rights represents the period of time remaining in the current offering period. The dividend yield assumption is based on Intevac’s history of not paying dividends and the assumption of not paying dividends in the future. RSUs A summary of the RSU activity is as follows: Shares Weighted Average Grant Date Fair Value Non-vested RSUs at January 3, 2015 350,429 $ 6.62 Granted 327,960 $ 6.07 Vested (102,561 ) $ 7.12 Cancelled and forfeited (23,952 ) $ 6.35 Non-vested RSUs at July 4, 2015 551,876 $ 6.21 RSUs are converted into shares of Intevac common stock upon vesting on a one-for-one basis. RSUs typically are scheduled to vest over four years. Vesting of RSUs is subject to the grantee’s continued service with Intevac. The compensation expense related to these awards is determined using the fair market value of Intevac common stock on the date of the grant, and the compensation expense is recognized over the vesting period. In fiscal 2015 and fiscal 2014, the annual bonus for certain participants in the Company’s annual incentive plan will be settled with RSUs with one year vesting. The Company accrued for the payment of bonuses at the expected company-wide payout percentage amount at July 4, 2015 and June 28, 2014, which amounts were less than the target bonus amounts for each participant. The bonus accrual is classified as a liability until the number of shares is determined on the date the awards are granted, at which time the Company classifies the awards into equity. In February 2015, the annual bonus for certain participants was settled with RSUs with one year vesting, 29 participants were granted stock awards to receive 133,000 shares of common stock with a weighted average grant date fair value of $6.85 per share. The Company recorded equity-based compensation expense related to the annual incentive plan of $123,000 and $72,000, respectively for the three and six months ended July 4, 2015 and $161,000 and $322,000, respectively for the three and six months ended June 28, 2014. Performance-based RSUs (“performance-based awards”) granted in fiscal 2013 to certain executive officers are also subject to the achievement of specified performance goals. These performance-based awards become eligible to vest only if performance goals are achieved and then actually will vest only if the grantee remains employed by Intevac through each applicable vesting date. The fair value of these performance-based awards is estimated on the date of grant and assumes that the specified performance goals will be achieved. If the goals are achieved, these awards vest over a specified remaining service period, provided that the grantee remains employed by Intevac through each scheduled vesting date. If the performance goals are not met, no compensation expense is recognized and any previously recognized compensation expense is reversed. The expected cost of each award is reflected over the service period and is reduced for estimated forfeitures. For performance-based awards granted during fiscal 2013, the performance goals require the achievement of targeted revenues and adjusted annual operating profit levels measured at the end of two and three-year periods. In early 2015, the Compensation Committee assessed performance against the goals following the completion of the 2-year performance period for Tranche 1 and determined that 5,532 shares of the awards became earned and therefore eligible for time-based vesting. |
Purchased Intangible Assets
Purchased Intangible Assets | 6 Months Ended |
Jul. 04, 2015 | |
Purchased Intangible Assets | 5. Purchased Intangible Assets Details of finite-lived intangible assets by segment as of July 4, 2015, are as follows. July 4, 2015 Gross Accumulated Net (In thousands) Thin-film Equipment $ 7,172 $ (4,009 ) $ 3,163 Photonics 1,215 (839 ) 376 $ 8,387 $ (4,848 ) $ 3,539 Total amortization expense of finite-lived intangibles for the three and six months ended July 4, 2015 was $213,000 and $427,000. As of July 4, 2015, future amortization expense is expected to be as follows. (In thousands) 2015 $ 427 2016 853 2017 755 2018 615 2019 615 Thereafter 274 $ 3,539 |
Acquisition-Related Contingent
Acquisition-Related Contingent Consideration | 6 Months Ended |
Jul. 04, 2015 | |
Acquisition-Related Contingent Consideration | 6. Acquisition-Related Contingent Consideration In connection with the acquisition of Solar Implant Technologies, Inc. (“SIT”), Intevac agreed to pay to the selling shareholders in cash a revenue earnout on Intevac’s net revenue from commercial sales of certain products over a specified period up to an aggregate of $9.0 million. Intevac estimated the fair value of this contingent consideration on July 4, 2015 based on probability-based forecasted revenues reflecting Intevac’s own assumptions concerning future revenue from such products. As of July 4, 2015, payments made associated with the revenue earnout obligation have not been significant. The fair value measurement of contingent consideration is based on significant inputs not observed in the market and thus represents a Level 3 measurement. Any change in fair value of the contingent consideration subsequent to the acquisition date is recognized in operating income within the condensed consolidated statement of operations. The following table represents a reconciliation of the change in the fair value measurement of the contingent consideration liability for the three and six month periods ended July 4, 2015 and June 28, 2014: Three Months Ended Six Months Ended July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 (In thousands) Opening balance $ 1,108 $ 1,435 $ 1,134 $ 1,384 Changes in fair value (174 ) 46 (200 ) 97 Closing balance $ 934 $ 1,481 $ 934 $ 1,481 The following table displays the balance sheet classification of the contingent consideration liability account at July 4, 2015 and at January 3, 2015: July 4, January 3, 2015 2015 (In thousands) Other accrued liabilities $ 32 $ 59 Other long-term liabilities 902 1,075 Total acquisition-related contingent consideration $ 934 $ 1,134 The following table represents the quantitative range of the significant unobservable inputs used in the calculation of fair value of the continent consideration liability as of July 4, 2015. Significant increases or decreases in any of these inputs in isolation would result in a significantly lower (higher) fair value measurement. Quantitative Information about Level 3 Fair Value Measurements at July 4, 2015 Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (In thousands, except for percentages) Revenue Earnout $ 934 Discounted cash flow Weighted average cost of capital Probability weighting of achieving revenue forecasts 15.0% 20.0% - 80.0% (48.0%) |
Warranty
Warranty | 6 Months Ended |
Jul. 04, 2015 | |
Warranty | 7. Warranty Intevac provides for the estimated cost of warranty when revenue is recognized. Intevac’s warranty is per contract terms and for its disk manufacturing, photovoltaic (“PV”) manufacturing, and display cover panel manufacturing systems the warranty typically ranges between 12 and 24 months from customer acceptance. For systems sold through a distributor, Intevac offers a 3 month warranty. The remainder of any warranty period is the responsibility of the distributor. During this warranty period any defective non-consumable parts are replaced and installed at no charge to the customer. The warranty period on consumable parts is limited to their reasonable usable lives. Intevac uses estimated repair or replacement costs along with its historical warranty experience to determine its warranty obligation. Intevac generally provides a twelve month warranty on its Photonics’ products. The provision for the estimated future costs of warranty is based upon historical cost and product performance experience. Intevac exercises judgment in determining the underlying estimates. On the condensed consolidated balance sheets, the short-term portion of the warranty provision is included in other accrued liabilities, while the long-term portion is included in other long-term liabilities. The expense associated with product warranties issued or adjusted is included in cost of net revenues on the condensed consolidated statements of operations. The following table displays the activity in the warranty provision account for the three and six months ended July 4, 2015 and June 28, 2014: Three Months Ended Six Months Ended July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 (In thousands) Opening balance $ 1,352 $ 1,331 $ 1,186 $ 1,647 Expenditures incurred under warranties (91 ) (217 ) (222 ) (523 ) Accruals for product warranties issued during the reporting period 203 219 600 504 Adjustments to previously existing warranty accruals (186 ) (177 ) (286 ) (472 ) Closing balance $ 1,278 $ 1,156 $ 1,278 $ 1,156 The following table displays the balance sheet classification of the warranty provision account at July 4, 2015 and at January 3, 2015: July 4, January 3, 2015 2015 (In thousands) Other accrued liabilities $ 1,037 $ 1,022 Other long-term liabilities 241 164 Total warranty provision $ 1,278 $ 1,186 |
Guarantees
Guarantees | 6 Months Ended |
Jul. 04, 2015 | |
Guarantees | 8. Guarantees Officer and Director Indemnifications As permitted or required under Delaware law and to the maximum extent allowable under that law, Intevac has certain obligations to indemnify its current and former officers and directors for certain events or occurrences while the officer or director is, or was serving, at Intevac’s request in such capacity. These indemnification obligations are valid as long as the director or officer acted in good faith and in a manner the person reasonably believed to be in or not opposed to the best interests of the Company and, with respect to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful. The maximum potential amount of future payments Intevac could be required to make under these indemnification obligations is unlimited; however, Intevac has a director and officer insurance policy that mitigates Intevac’s exposure and enables Intevac to recover a portion of any future amounts paid. As a result of Intevac’s insurance policy coverage, Intevac believes the estimated fair value of these indemnification obligations is not material. Other Indemnifications As is customary in Intevac’s industry, many of Intevac’s contracts provide remedies to certain third parties such as defense, settlement, or payment of judgments for intellectual property claims related to the use of its products. Such indemnification obligations may not be subject to maximum loss clauses. Historically, payments made related to these indemnifications have been immaterial. Letters of Credit As of July 4, 2015, we had letters of credit and bank guarantees outstanding totaling $1.8 million, including the standby letter of credit outstanding under the Santa Clara, California facility lease and a banker’s guarantee which guarantees customer advances under a customer contract. These letters of credit and bank guarantees are collateralized by $1.8 million of restricted cash. |
Cash, Cash Equivalents and Inve
Cash, Cash Equivalents and Investments | 6 Months Ended |
Jul. 04, 2015 | |
Cash, Cash Equivalents and Investments | 9. Cash, Cash Equivalents and Investments Cash and cash equivalents, short-term investments and long-term investments consist of: July 4, 2015 Amortized Unrealized Unrealized Fair Value (In thousands) Cash and cash equivalents: Cash $ 5,651 $ — $ — $ 5,651 Money market funds 10,566 — — 10,566 Total cash and cash equivalents $ 16,217 $ — $ — $ 16,217 Short-term investments: Commercial paper $ 4,996 $ — $ — $ 4,996 Corporate bonds and medium-term notes 14,236 7 2 14,241 Municipal bonds 3,291 3 — 3,294 U.S. treasury and agency securities 8,997 11 — 9,008 Total short-term investments $ 31,520 $ 21 $ 2 $ 31,539 Long-term investments: Corporate bonds and medium-term notes $ 3,036 $ 2 $ 2 $ 3,036 Municipal bonds 2,731 — — 2,731 U.S. treasury and agency securities 3,492 5 — 3,497 Total long-term investments $ 9,259 $ 7 $ 2 $ 9,264 Total cash, cash equivalents, and investments $ 56,996 $ 28 $ 4 $ 57,020 January 3, 2015 Amortized Unrealized Unrealized Fair Value (In thousands) Cash and cash equivalents: Cash $ 4,948 $ — $ — $ 4,948 Money market funds 16,534 — — 16,534 Total cash and cash equivalents $ 21,482 $ — $ — $ 21,482 Short-term investments: Commercial paper $ 2,995 $ 2 $ — $ 2,997 Corporate bonds and medium-term notes 21,203 2 6 21,199 Municipal bonds 5,392 11 1 5,402 Total short-term investments $ 29,590 $ 15 $ 7 $ 29,598 Long-term investments: Corporate bonds and medium-term notes $ 6,266 $ 1 $ 4 $ 6,263 Municipal bonds 2,290 — 8 2,282 U.S. treasury and agency securities 8,995 3 1 8,997 Total long-term investments $ 17,551 $ 4 $ 13 $ 17,542 Total cash, cash equivalents, and investments $ 68,623 $ 19 $ 20 $ 68,622 The contractual maturities of available-for-sale securities at July 4, 2015 are presented in the following table. Amortized Fair Value (In thousands) Due in one year or less $ 42,086 $ 42,105 Due after one through two years 9,259 9,264 $ 51,345 $ 51,369 The following table provides the fair market value of Intevac’s investments with unrealized losses that are not deemed to be other-than temporarily impaired as of July 4, 2015. July 4, 2015 In Loss Position for Less than 12 Months In Loss Position for Greater than 12 Months Fair Gross Unrealized Fair Value Gross Unrealized (In thousands) Corporate bonds and medium-term notes $ 5,041 $ 4 $ — $ — All prices for the fixed maturity securities including U.S. Treasury and agency securities, commercial paper, corporate bonds and municipal bonds are received from independent pricing services utilized by Intevac’s outside investment manager. This investment manager performs a review of the pricing methodologies and inputs utilized by the independent pricing services for each asset type priced by the vendor. In addition, on at least an annual basis, the investment manager conducts due diligence visits and interviews with each pricing vendor to verify the inputs utilized for each asset class. The due diligence visits include a review of the procedures performed by each vendor to ensure that pricing evaluations are representative of the price that would be received to sell a security in an orderly transaction. Any pricing where the input is based solely on a broker price is deemed to be a Level 3 price. Intevac uses the pricing data obtained from its outside investment manager as the primary input to make its assessments and determinations as to the ultimate valuation of the above-mentioned securities and has not made, during the periods presented, any material adjustments to such inputs. The following table represents the fair value hierarchy of Intevac’s available-for-sale securities measured at fair value on a recurring basis as of July 4, 2015. Fair Value Measurements at July 4, 2015 Total Level 1 Level 2 (In thousands) Recurring fair value measurements: Available-for-sale securities Money market funds $ 10,566 $ 10,566 $ — U.S. treasury and agency securities 12,505 10,504 2,001 Commercial paper 4,996 — 4,996 Corporate bonds and medium-term notes 17,277 — 17,277 Municipal bonds 6,025 — 6,025 Total recurring fair value measurements $ 51,369 $ 21,070 $ 30,299 |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jul. 04, 2015 | |
Derivative Instruments | 10. Derivative Instruments The Company uses foreign currency forward contracts to mitigate variability in gains and losses generated from the re-measurement of certain monetary assets and liabilities denominated in foreign currencies and to offset certain operational exposures from the impact of changes in foreign currency exchange rates. These derivatives are carried at fair value with changes recorded in interest income and other, net in the condensed consolidated statements of operations. Changes in the fair value of these derivatives are largely offset by re-measurement of the underlying assets and liabilities. Cash flows from such derivatives are classified as operating activities. The derivatives have original maturities of approximately 30, 60, 210 and 240 days. The following table summarizes the Company’s outstanding derivative instruments on a gross basis as recorded in its condensed consolidated balance sheets as of July 4, 2015 and January 3, 2015: Notional Amounts Derivative Assets Derivative Liabilities Derivative Instrument July 4, January 3, July 4, January 3, July 4, January 3, Balance Sheet Line Fair Value Balance Sheet Line Fair Value Balance Sheet Line Fair Value Balance Sheet Line Fair Value (In thousands) Undesignated Hedges: Forward Foreign Currency Contracts $ 1,220 $ 2,647 (a ) $ 13 (a ) $ 10 (b ) $ 2 (b ) $ 4 Total Hedges $ 1,220 $ 2,647 $ 13 $ 10 $ 2 $ 4 (a) Prepaid expenses and other current assets (b) Other accrued liabilities |
Equity
Equity | 6 Months Ended |
Jul. 04, 2015 | |
Equity | 11. Equity Stock Repurchase Program On November 21, 2013, Intevac’s Board of Directors approved a stock repurchase program authorizing up to $30.0 million in repurchases. At July 4, 2015, $10.7 million remains available for future stock repurchases under the repurchase program. The following table summarizes Intevac’s stock repurchases: Three Months Ended Six Months Ended July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 (In thousands, except per share amounts) Shares of common stock repurchased 1,128 58 1,571 195 Cost of stock repurchased $ 6,293 $ 419 $ 9,280 $ 1,469 Average price paid per share $ 5.55 $ 7.21 $ 5.88 $ 7.49 Intevac records treasury stock purchases under the cost method using the first-in, first-out (FIFO) method. Upon reissuance of treasury stock, amounts in excess of the acquisition cost are credited to additional paid in capital. If Intevac reissues treasury stock at an amount below its acquisition cost and additional paid in capital associated with prior treasury stock transactions is insufficient to cover the difference between the acquisition cost and the reissue price, this difference is recorded against accumulated deficit. Accumulated Other Comprehensive Income The changes in accumulated other comprehensive income by component for the three and six months ended July 4, 2015 and June 28, 2014, are as follows. Three Months Ended Six Months Ended July 4, 2015 Foreign Unrealized holding gains on available- for-sale investments Total Foreign Unrealized holding gains on available- for-sale Total (In thousands) Beginning balance $ 620 $ 28 $ 648 $ 620 $ (1 ) $ 619 Other comprehensive income (35 ) (4 ) (39 ) (35 ) 25 (10 ) Amounts reclassified from other — — — — — — Net current-period other comprehensive income (loss) (35 ) (4 ) (39 ) (35 ) 25 (10 ) Ending balance $ 585 $ 24 $ 609 $ 585 $ 24 $ 609 Three Months Ended Six Months Ended June 28, 2014 Foreign Unrealized on available- for-sale investments Total Foreign Unrealized holding gains on available- for-sale investments Total (In thousands) Beginning balance $ 660 $ 39 $ 699 $ 691 $ 34 $ 725 Other comprehensive income 15 (11 ) 4 (16 ) (6 ) (22 ) Amounts reclassified from other — — — — — — Net current-period other comprehensive income (loss) 15 (11 ) 4 (16 ) (6 ) (22 ) Ending balance $ 675 $ 28 $ 703 $ 675 $ 28 $ 703 |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 6 Months Ended |
Jul. 04, 2015 | |
Net Income (Loss) Per Share | 12. Net Income (Loss) Per Share The following table sets forth the computation of basic and diluted income (loss) per share: Three Months Ended Six Months Ended July 4, 2015 June 28, 2014 July 4 2015 June 28, 2014 (In thousands, except per share amounts) Net income (loss) $ 12 $ (5,007 ) $ (2,881 ) $ (9,528 ) Weighted-average shares – basic 22,630 23,927 22,929 23,892 Effect of dilutive potential common shares 282 — — — Weighted-average shares – diluted 22,912 23,927 22,929 23,892 Net loss per share – basic and diluted $ — $ (0.21 ) $ (0.13 ) $ (0.40 ) Antidilutive shares based on employee awards excluded 2,085 1,977 2,273 1,911 Potentially dilutive common shares consist of shares issuable upon exercise of employee stock options and vesting of RSUs and are excluded from the calculation of diluted EPS when their effect would be anti-dilutive. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jul. 04, 2015 | |
Segment Reporting | 13. Segment Reporting Intevac’s two reportable segments are: Thin-film Equipment and Photonics. Effective in the first quarter of 2015, Intevac renamed the Equipment segment Thin-film Equipment. Intevac’s chief operating decision-maker has been identified as the President and CEO, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. Segment information is presented based upon Intevac’s management organization structure as of July 4, 2015 and the distinctive nature of each segment. Future changes to this internal financial structure may result in changes to the reportable segments disclosed. Each reportable segment is separately managed and has separate financial results that are reviewed by Intevac’s chief operating decision-maker. Each reportable segment contains closely related products that are unique to the particular segment. Segment operating profit is determined based upon internal performance measures used by the chief operating decision-maker. Intevac derives the segment results from its internal management reporting system. The accounting policies Intevac uses to derive reportable segment results are substantially the same as those used for external reporting purposes. Management measures the performance of each reportable segment based upon several metrics, including orders, net revenues and operating income. Management uses these results to evaluate the performance of, and to assign resources to, each of the reportable segments. Intevac manages certain operating expenses separately at the corporate level. Intevac allocates certain of these corporate expenses to the segments in an amount equal to 3% of net revenues. Segment operating income excludes interest income/expense and other financial charges and income taxes according to how a particular reportable segment’s management is measured. Management does not consider impairment charges, gains and losses on divestitures and sales of intellectual property, and unallocated costs in measuring the performance of the reportable segments. The Thin-film Equipment segment designs, develops and markets vacuum process equipment solutions for high-volume manufacturing of small substrates with precise thin-film properties for hard drive, solar cell and cell phone manufacturers as well as other adjacent thin-film deposition applications. The Photonics segment develops compact, cost-effective, high-sensitivity digital-optical products for the capture and display of low-light images and the optical analysis of materials. Intevac provides sensors, cameras and systems for government applications such as night vision and long-range target identification. Information for each reportable segment for the three and six months ended July 4, 2015 and June 28, 2014 is as follows: Net Revenues Three Months Ended Six Months Ended July 4, 2015 June 28, 2014 July 4, June 28, 2014 (In thousands) Thin-film Equipment $ 11,494 $ 3,762 $ 22,122 $ 12,809 Photonics 8,964 10,953 18,221 18,921 Total segment net revenues $ 20,458 $ 14,715 $ 40,343 $ 31,730 Operating Income (Loss) Three Months Ended Six Months Ended July 4, 2015 June 28, 2014 July 4, June 28, 2014 (In thousands) Thin-film Equipment $ 6 $ (5,667 ) $ (3,291 ) $ (9,808 ) Photonics 1,275 2,567 2,752 3,475 Total income (loss) from segment operations 1,281 (3,100 ) (539 ) (6,333 ) Unallocated costs (998 ) (2,146 ) (2,118 ) (3,637 ) Income (loss) from operations 283 (5,246 ) (2,657 ) (9,970 ) Interest income and other, net (13 ) 120 66 192 Income (loss) before income taxes $ 270 $ (5,126 ) $ (2,591 ) $ (9,778 ) Total assets for each reportable segment as of July 4, 2015 and January 3, 2015 are as follows: Assets July 4, January 3, (In thousands) Thin-film Equipment $ 28,791 $ 30,670 Photonics 17,094 17,126 Total segment assets 45,885 47,796 Cash, cash equivalents and investments 57,020 68,622 Restricted cash 1,780 1,780 Deferred income taxes 63 5 Other current assets 929 989 Common property, plant and equipment 1,056 1,083 Consolidated total assets $ 106,733 $ 120,275 |
Restructuring Charges
Restructuring Charges | 6 Months Ended |
Jul. 04, 2015 | |
Restructuring Charges | 14. Restructuring Charges During the first quarter of fiscal 2015, Intevac substantially completed implementation of the 2015 cost reduction plan (the “Plan”), which was intended to reduce expenses and reduce its workforce by 3 percent. The cost of implementing the Plan was reported under cost of net revenues and operating expenses in the condensed consolidated statements of operations. Substantially all cash outlays in connection with the Plan occurred in the first quarter of fiscal 2015. Implementation of the Plan is expected to reduce salary, wages and other employee-related expenses by approximately $1.4 million on an annual basis. During the first half of fiscal 2014, Intevac substantially completed implementation of the 2014 cost reduction plan (the “2014 Plan”), which was intended to reduce expenses and reduce its workforce by 6 percent. The cost of implementing the 2014 Plan was reported under cost of net revenues and operating expenses in the condensed consolidated statements of operations. Substantially all cash outlays in connection with the Plan occurred in the first half of fiscal 2014. Implementation of the 2014 Plan reduced salary, wages and other employee-related expenses by approximately $2.1 million on an annual basis. As of July 4, 2015, activities related to the 2014 Plan were complete. The changes in restructuring reserves associated with the Plans for the three and six months ended July 4, 2015 and June 28, 2014 are as follows. Three Months Ended Six Months Ended July 4, June 28, July 4, June 28, 2015 2014 2015 2014 Severance and other employee-related costs (In thousands) Beginning balance $ — $ — $ — $ — Provision for restructuring reserves — 61 148 288 Cash payments made (— ) (61 ) (148 ) (288 ) Ending balance $ — $ — $ — $ — |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 04, 2015 | |
Income Taxes | 15. Income Taxes Intevac recorded an income tax provision of $258,000 and $290,000 for the three and six months ended July 4, 2015, respectively. Intevac recorded income tax benefits of $119,000 and $250,000 for the three and six months ended June 28, 2014, respectively. In the three months ended July 4, 2015, Intevac recorded a $262,000 income tax charge for audit considerations in foreign jurisdictions as a discrete item for the period. The income tax provisions for the three month periods are based upon estimates of annual income (loss), annual permanent differences and statutory tax rates in the various jurisdictions in which Intevac operates. Intevac did not recognize a benefit on the U.S. net operating loss for either of the three and six month periods ended July 4, 2015 and June 28, 2014 due to having full valuation allowances on the U.S. deferred tax assets. Intevac did not recognize a benefit on the Singapore net operating loss for the three and six months ended July 4, 2015 due to having full valuation allowances on the Singapore deferred tax assets. Intevac’s tax rate differs from the applicable statutory rates due primarily to establishment of a valuation allowance, the utilization of deferred and current credits and the effect of permanent differences and adjustments of prior permanent differences. Intevac’s future effective income tax rate depends on various factors including, the level of Intevac’s projected earnings, the geographic composition of worldwide earnings, tax regulations governing each region, net operating loss carry-forwards, availability of tax credits and the effectiveness of Intevac’s tax planning strategies. Management carefully monitors these factors and timely adjusts the effective income tax rate. |
Contingencies
Contingencies | 6 Months Ended |
Jul. 04, 2015 | |
Contingencies | 16. Contingencies From time to time, Intevac may have certain contingent liabilities that arise in the ordinary course of its business activities. Intevac accounts for contingent liabilities when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Summary of Inventories | Inventories are stated at the lower of average cost or market and consist of the following: July 4, January 3, 2015 2015 (In thousands) Raw materials $ 11,071 $ 10,684 Work-in-progress 2,076 2,299 Finished goods 5,370 6,229 $ 18,517 $ 19,212 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Effect of Recording Equity-Based Compensation | The effect of recording equity-based compensation for the three and six months ended July 4, 2015 and June 28, 2014 was as follows: Three Months Ended Six Months Ended July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 (In thousands) Equity-based compensation by type of award: Stock options $ 125 $ 153 $ 442 $ 394 RSUs 395 376 735 668 Employee stock purchase plan 280 137 486 301 Total equity-based compensation $ 800 $ 666 $ 1,663 $ 1,363 |
Option Activity and Changes | Option activity as of July 4, 2015 and changes during the six months ended July 4, 2015 were as follows: Shares Weighted Average Options outstanding at January 3, 2015 2,584,935 $ 8.26 Options granted 416,375 $ 5.55 Options cancelled and forfeited (316,349 ) $ 7.78 Options exercised (38,521 ) $ 4.38 Options outstanding at July 4, 2015 2,646,440 $ 7.94 Vested and expected to vest at July 4, 2015 2,464,503 $ 8.08 Options exercisable at July 4, 2015 1,510,867 $ 9.25 |
Weighted-Average Fair Value of Stock Options and Employee Stock Purchase Rights using Weighted-Average Assumptions | Intevac estimated the weighted-average fair value of stock options and employee stock purchase rights using the following weighted-average assumptions: Three Months Ended Six Months Ended July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Stock Options: Weighted-average fair value of grants per share $ 2.05 $ 3.02 $ 2.07 $ 3.14 Expected volatility 46.13 % 52.11 % 46.26 % 52.38 % Risk free interest rate 1.44 % 1.30 % 1.43 % 1.36 % Expected term of options (in years) 4.0 4.2 4.0 4.3 Dividend yield None None None None Six Months Ended July 4, 2015 June 28, 2014 Stock Purchase Rights: Weighted-average fair value of grants per share $ 2.26 $ 2.15 Expected volatility 44.05 % 43.40 % Risk free interest rate 0.39 % 0.11 % Expected term of purchase rights (in years) 1.22 0.74 Dividend yield None None |
Summary of Restricted Stock Units Activity | A summary of the RSU activity is as follows: Shares Weighted Average Grant Date Fair Value Non-vested RSUs at January 3, 2015 350,429 $ 6.62 Granted 327,960 $ 6.07 Vested (102,561 ) $ 7.12 Cancelled and forfeited (23,952 ) $ 6.35 Non-vested RSUs at July 4, 2015 551,876 $ 6.21 |
Purchased Intangible Assets (Ta
Purchased Intangible Assets (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Details of Finite-lived Intangible Assets by Segment | Details of finite-lived intangible assets by segment as of July 4, 2015, are as follows. July 4, 2015 Gross Accumulated Net (In thousands) Thin-film Equipment $ 7,172 $ (4,009 ) $ 3,163 Photonics 1,215 (839 ) 376 $ 8,387 $ (4,848 ) $ 3,539 |
Future Amortization Expense | As of July 4, 2015, future amortization expense is expected to be as follows. (In thousands) 2015 $ 427 2016 853 2017 755 2018 615 2019 615 Thereafter 274 $ 3,539 |
Acquisition-Related Contingen26
Acquisition-Related Contingent Consideration (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Reconciliation of Change in Fair Value Measurement of Contingent Consideration Liability | The following table represents a reconciliation of the change in the fair value measurement of the contingent consideration liability for the three and six month periods ended July 4, 2015 and June 28, 2014: Three Months Ended Six Months Ended July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 (In thousands) Opening balance $ 1,108 $ 1,435 $ 1,134 $ 1,384 Changes in fair value (174 ) 46 (200 ) 97 Closing balance $ 934 $ 1,481 $ 934 $ 1,481 |
Balance Sheet Classification of Contingent Consideration Liability | The following table displays the balance sheet classification of the contingent consideration liability account at July 4, 2015 and at January 3, 2015: July 4, January 3, 2015 2015 (In thousands) Other accrued liabilities $ 32 $ 59 Other long-term liabilities 902 1,075 Total acquisition-related contingent consideration $ 934 $ 1,134 |
Quantitative Information of Significant Unobservable Inputs of Contingent Consideration Liability | The following table represents the quantitative range of the significant unobservable inputs used in the calculation of fair value of the continent consideration liability as of July 4, 2015. Significant increases or decreases in any of these inputs in isolation would result in a significantly lower (higher) fair value measurement. Quantitative Information about Level 3 Fair Value Measurements at July 4, 2015 Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (In thousands, except for percentages) Revenue Earnout $ 934 Discounted cash flow Weighted average cost of capital Probability weighting of achieving revenue forecasts 15.0% 20.0% - 80.0% (48.0%) |
Warranty (Tables)
Warranty (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Activity in Warranty Provision Account | The following table displays the activity in the warranty provision account for the three and six months ended July 4, 2015 and June 28, 2014: Three Months Ended Six Months Ended July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 (In thousands) Opening balance $ 1,352 $ 1,331 $ 1,186 $ 1,647 Expenditures incurred under warranties (91 ) (217 ) (222 ) (523 ) Accruals for product warranties issued during the reporting period 203 219 600 504 Adjustments to previously existing warranty accruals (186 ) (177 ) (286 ) (472 ) Closing balance $ 1,278 $ 1,156 $ 1,278 $ 1,156 The following table displays the balance sheet classification of the warranty provision account at July 4, 2015 and at January 3, 2015: July 4, January 3, 2015 2015 (In thousands) Other accrued liabilities $ 1,037 $ 1,022 Other long-term liabilities 241 164 Total warranty provision $ 1,278 $ 1,186 |
Cash, Cash Equivalents and In28
Cash, Cash Equivalents and Investments (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Cash, Cash Equivalents and Short-Term Investments and Long-Term Investments | Cash and cash equivalents, short-term investments and long-term investments consist of: July 4, 2015 Amortized Unrealized Unrealized Fair Value (In thousands) Cash and cash equivalents: Cash $ 5,651 $ — $ — $ 5,651 Money market funds 10,566 — — 10,566 Total cash and cash equivalents $ 16,217 $ — $ — $ 16,217 Short-term investments: Commercial paper $ 4,996 $ — $ — $ 4,996 Corporate bonds and medium-term notes 14,236 7 2 14,241 Municipal bonds 3,291 3 — 3,294 U.S. treasury and agency securities 8,997 11 — 9,008 Total short-term investments $ 31,520 $ 21 $ 2 $ 31,539 Long-term investments: Corporate bonds and medium-term notes $ 3,036 $ 2 $ 2 $ 3,036 Municipal bonds 2,731 — — 2,731 U.S. treasury and agency securities 3,492 5 — 3,497 Total long-term investments $ 9,259 $ 7 $ 2 $ 9,264 Total cash, cash equivalents, and investments $ 56,996 $ 28 $ 4 $ 57,020 January 3, 2015 Amortized Unrealized Unrealized Fair Value (In thousands) Cash and cash equivalents: Cash $ 4,948 $ — $ — $ 4,948 Money market funds 16,534 — — 16,534 Total cash and cash equivalents $ 21,482 $ — $ — $ 21,482 Short-term investments: Commercial paper $ 2,995 $ 2 $ — $ 2,997 Corporate bonds and medium-term notes 21,203 2 6 21,199 Municipal bonds 5,392 11 1 5,402 Total short-term investments $ 29,590 $ 15 $ 7 $ 29,598 Long-term investments: Corporate bonds and medium-term notes $ 6,266 $ 1 $ 4 $ 6,263 Municipal bonds 2,290 — 8 2,282 U.S. treasury and agency securities 8,995 3 1 8,997 Total long-term investments $ 17,551 $ 4 $ 13 $ 17,542 Total cash, cash equivalents, and investments $ 68,623 $ 19 $ 20 $ 68,622 |
Contractual Maturities of Available-for-Sale Securities | The contractual maturities of available-for-sale securities at July 4, 2015 are presented in the following table. Amortized Fair Value (In thousands) Due in one year or less $ 42,086 $ 42,105 Due after one through two years 9,259 9,264 $ 51,345 $ 51,369 |
Fair Market Value of Investments with Unrealized Losses Not Deemed to be Other-Than Temporarily Impaired | The following table provides the fair market value of Intevac’s investments with unrealized losses that are not deemed to be other-than temporarily impaired as of July 4, 2015. July 4, 2015 In Loss Position for Less than 12 Months In Loss Position for Greater than 12 Months Fair Gross Unrealized Fair Value Gross Unrealized (In thousands) Corporate bonds and medium-term notes $ 5,041 $ 4 $ — $ — |
Fair Value Hierarchy of Available-for-Sale Securities Measured at Fair Value on Recurring Basis | The following table represents the fair value hierarchy of Intevac’s available-for-sale securities measured at fair value on a recurring basis as of July 4, 2015. Fair Value Measurements at July 4, 2015 Total Level 1 Level 2 (In thousands) Recurring fair value measurements: Available-for-sale securities Money market funds $ 10,566 $ 10,566 $ — U.S. treasury and agency securities 12,505 10,504 2,001 Commercial paper 4,996 — 4,996 Corporate bonds and medium-term notes 17,277 — 17,277 Municipal bonds 6,025 — 6,025 Total recurring fair value measurements $ 51,369 $ 21,070 $ 30,299 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Summary of Outstanding Derivative Instruments on Gross Basis as Recorded in Consolidated Balance Sheets | The following table summarizes the Company’s outstanding derivative instruments on a gross basis as recorded in its condensed consolidated balance sheets as of July 4, 2015 and January 3, 2015: Notional Amounts Derivative Assets Derivative Liabilities Derivative Instrument July 4, January 3, July 4, January 3, July 4, January 3, Balance Sheet Line Fair Value Balance Sheet Line Fair Value Balance Sheet Line Fair Value Balance Sheet Line Fair Value (In thousands) Undesignated Hedges: Forward Foreign Currency Contracts $ 1,220 $ 2,647 (a ) $ 13 (a ) $ 10 (b ) $ 2 (b ) $ 4 Total Hedges $ 1,220 $ 2,647 $ 13 $ 10 $ 2 $ 4 (a) Prepaid expenses and other current assets (b) Other accrued liabilities |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Stock Repurchases | The following table summarizes Intevac’s stock repurchases: Three Months Ended Six Months Ended July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 (In thousands, except per share amounts) Shares of common stock repurchased 1,128 58 1,571 195 Cost of stock repurchased $ 6,293 $ 419 $ 9,280 $ 1,469 Average price paid per share $ 5.55 $ 7.21 $ 5.88 $ 7.49 |
Change in Accumulated Other Comprehensive Income by Component | The changes in accumulated other comprehensive income by component for the three and six months ended July 4, 2015 and June 28, 2014, are as follows. Three Months Ended Six Months Ended July 4, 2015 Foreign Unrealized holding gains on available- for-sale investments Total Foreign Unrealized holding gains on available- for-sale Total (In thousands) Beginning balance $ 620 $ 28 $ 648 $ 620 $ (1 ) $ 619 Other comprehensive income (35 ) (4 ) (39 ) (35 ) 25 (10 ) Amounts reclassified from other — — — — — — Net current-period other comprehensive income (loss) (35 ) (4 ) (39 ) (35 ) 25 (10 ) Ending balance $ 585 $ 24 $ 609 $ 585 $ 24 $ 609 Three Months Ended Six Months Ended June 28, 2014 Foreign Unrealized on available- for-sale investments Total Foreign Unrealized holding gains on available- for-sale investments Total (In thousands) Beginning balance $ 660 $ 39 $ 699 $ 691 $ 34 $ 725 Other comprehensive income 15 (11 ) 4 (16 ) (6 ) (22 ) Amounts reclassified from other — — — — — — Net current-period other comprehensive income (loss) 15 (11 ) 4 (16 ) (6 ) (22 ) Ending balance $ 675 $ 28 $ 703 $ 675 $ 28 $ 703 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Computation of Basic and Diluted Income (Loss) Per Share | The following table sets forth the computation of basic and diluted income (loss) per share: Three Months Ended Six Months Ended July 4, 2015 June 28, 2014 July 4 2015 June 28, 2014 (In thousands, except per share amounts) Net income (loss) $ 12 $ (5,007 ) $ (2,881 ) $ (9,528 ) Weighted-average shares – basic 22,630 23,927 22,929 23,892 Effect of dilutive potential common shares 282 — — — Weighted-average shares – diluted 22,912 23,927 22,929 23,892 Net loss per share – basic and diluted $ — $ (0.21 ) $ (0.13 ) $ (0.40 ) Antidilutive shares based on employee awards excluded 2,085 1,977 2,273 1,911 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Information for Each Reportable Segment | Information for each reportable segment for the three and six months ended July 4, 2015 and June 28, 2014 is as follows: Net Revenues Three Months Ended Six Months Ended July 4, 2015 June 28, 2014 July 4, June 28, 2014 (In thousands) Thin-film Equipment $ 11,494 $ 3,762 $ 22,122 $ 12,809 Photonics 8,964 10,953 18,221 18,921 Total segment net revenues $ 20,458 $ 14,715 $ 40,343 $ 31,730 Operating Income (Loss) Three Months Ended Six Months Ended July 4, 2015 June 28, 2014 July 4, June 28, 2014 (In thousands) Thin-film Equipment $ 6 $ (5,667 ) $ (3,291 ) $ (9,808 ) Photonics 1,275 2,567 2,752 3,475 Total income (loss) from segment operations 1,281 (3,100 ) (539 ) (6,333 ) Unallocated costs (998 ) (2,146 ) (2,118 ) (3,637 ) Income (loss) from operations 283 (5,246 ) (2,657 ) (9,970 ) Interest income and other, net (13 ) 120 66 192 Income (loss) before income taxes $ 270 $ (5,126 ) $ (2,591 ) $ (9,778 ) |
Assets for Each Reportable Segment | Total assets for each reportable segment as of July 4, 2015 and January 3, 2015 are as follows: Assets July 4, January 3, (In thousands) Thin-film Equipment $ 28,791 $ 30,670 Photonics 17,094 17,126 Total segment assets 45,885 47,796 Cash, cash equivalents and investments 57,020 68,622 Restricted cash 1,780 1,780 Deferred income taxes 63 5 Other current assets 929 989 Common property, plant and equipment 1,056 1,083 Consolidated total assets $ 106,733 $ 120,275 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Changes in Restructuring Reserves | The changes in restructuring reserves associated with the Plans for the three and six months ended July 4, 2015 and June 28, 2014 are as follows. Three Months Ended Six Months Ended July 4, June 28, July 4, June 28, 2015 2014 2015 2014 Severance and other employee-related costs (In thousands) Beginning balance $ — $ — $ — $ — Provision for restructuring reserves — 61 148 288 Cash payments made (— ) (61 ) (148 ) (288 ) Ending balance $ — $ — $ — $ — |
Inventories Stated at Lower of
Inventories Stated at Lower of Average Cost or Market (Detail) - USD ($) $ in Thousands | Jul. 04, 2015 | Jan. 03, 2015 |
Inventory [Line Items] | ||
Raw materials | $ 11,071 | $ 10,684 |
Work-in-progress | 2,076 | 2,299 |
Finished goods | 5,370 | 6,229 |
Inventories | $ 18,517 | $ 19,212 |
Equity-Based Compensation - Add
Equity-Based Compensation - Additional information (Detail) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2015Employee$ / sharesshares | Jul. 04, 2015USD ($)shares | Jun. 28, 2014USD ($) | Jul. 04, 2015USD ($)shares | Jun. 28, 2014USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Purchase of common stock through payroll deductions | 85.00% | ||||
Offering periods | 2 years | ||||
Purchase intervals of a series | 6 months | ||||
Maximum employee salary withholdings for purchase of common stock under the terms of the ESPP | 15.00% | ||||
Number of shares issued under employee stock purchase plan | 201,000 | ||||
RSU conversion ratio | 100.00% | ||||
Annual incentive plan stock awards granted | 416,375 | ||||
Share awards from performance based-awards eligible for time based vesting | 2,464,503 | 2,464,503 | |||
Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award, vesting period | 4 years | ||||
Annual incentive plan equity-based compensation expense | $ | $ 123,000 | $ 161,000 | $ 72,000 | $ 322,000 | |
Number of participants in restricted stock grants awarded | Employee | 29 | ||||
Annual incentive plan stock awards granted | 133,000 | ||||
Weighted-average fair value of grants per share | $ / shares | $ 6.85 | ||||
Performance Shares | Share-based Compensation Award, Tranche One | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share awards from performance based-awards eligible for time based vesting | 5,532 | 5,532 |
Effect of Recording Equity-Base
Effect of Recording Equity-Based Compensation (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Equity Based Compensation Related to Employee Stock Purchase Programs [Line Items] | ||||
Total equity-based compensation | $ 800 | $ 666 | $ 1,663 | $ 1,363 |
Stock Options | ||||
Equity Based Compensation Related to Employee Stock Purchase Programs [Line Items] | ||||
Total equity-based compensation | 125 | 153 | 442 | 394 |
Restricted Stock Units (RSUs) | ||||
Equity Based Compensation Related to Employee Stock Purchase Programs [Line Items] | ||||
Total equity-based compensation | 395 | 376 | 735 | 668 |
ESPP awards | ||||
Equity Based Compensation Related to Employee Stock Purchase Programs [Line Items] | ||||
Total equity-based compensation | $ 280 | $ 137 | $ 486 | $ 301 |
Option Activity and Changes (De
Option Activity and Changes (Detail) - Jul. 04, 2015 - $ / shares | Total |
Shares | |
Options outstanding at January 3, 2015 | 2,584,935 |
Options granted | 416,375 |
Options cancelled and forfeited | (316,349) |
Options exercised | (38,521) |
Options outstanding at July 4, 2015 | 2,646,440 |
Vested and expected to vest at July 4, 2015 | 2,464,503 |
Options exercisable at July 4, 2015 | 1,510,867 |
Weighted Average Exercise Price | |
Options outstanding at January 3, 2015 | $ 8.26 |
Options granted | 5.55 |
Options cancelled and forfeited | 7.78 |
Options exercised | 4.38 |
Options outstanding at July 4, 2015 | 7.94 |
Vested and expected to vest at July 4, 2015 | 8.08 |
Options exercisable at July 4, 2015 | $ 9.25 |
Weighted-Average Fair Value of
Weighted-Average Fair Value of Stock Options and Employee Stock Purchase Rights using Weighted-Average Assumptions (Detail) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Stock Options | ||||
Employee stock options weighted-average assumptions | ||||
Weighted-average fair value of grants per share | $ 2.05 | $ 3.02 | $ 2.07 | $ 3.14 |
Expected volatility | 46.13% | 52.11% | 46.26% | 52.38% |
Risk free interest rate | 1.44% | 1.30% | 1.43% | 1.36% |
Expected term of options (in years) | 4 years | 4 years 2 months 12 days | 4 years | 4 years 3 months 18 days |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Stock Purchase Rights | ||||
Employee stock options weighted-average assumptions | ||||
Weighted-average fair value of grants per share | $ 2.26 | $ 2.15 | ||
Expected volatility | 44.05% | 43.40% | ||
Risk free interest rate | 0.39% | 0.11% | ||
Expected term of options (in years) | 1 year 2 months 19 days | 8 months 27 days | ||
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Summary of Restricted Stock Uni
Summary of Restricted Stock Units Activity (Detail) - 6 months ended Jul. 04, 2015 - Restricted Stock Units (RSUs) - $ / shares | Total |
Shares | |
Non-vested RSUs at January 3, 2015 | 350,429 |
Granted | 327,960 |
Vested | (102,561) |
Cancelled and forfeited | (23,952) |
Non-vested RSUs at July 4, 2015 | 551,876 |
Weighted Average Grant Date Fair Value | |
Non-vested RSUs at January 3, 2015 | $ 6.62 |
Granted | 6.07 |
Vested | 7.12 |
Cancelled and forfeited | 6.35 |
Non-vested RSUs at July 4, 2015 | $ 6.21 |
Details of Finite-lived Intangi
Details of Finite-lived Intangible Assets by Segment (Detail) - USD ($) $ in Thousands | Jul. 04, 2015 | Jan. 03, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived, Gross Carrying Amount | $ 8,387 | |
Accumulated Amortization | (4,848) | $ (4,421) |
Finite Lived, Net Carrying Amount | 3,539 | $ 3,966 |
Thin-film Equipment Segment | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived, Gross Carrying Amount | 7,172 | |
Accumulated Amortization | (4,009) | |
Finite Lived, Net Carrying Amount | 3,163 | |
Photonics | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived, Gross Carrying Amount | 1,215 | |
Accumulated Amortization | (839) | |
Finite Lived, Net Carrying Amount | $ 376 |
Purchased Intangible Assets - A
Purchased Intangible Assets - Additional Information (Detail) - Jul. 04, 2015 - USD ($) | Total | Total |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Total amortization expense of finite-lived intangibles | $ 213,000 | $ 427,000 |
Estimated Future Amortization E
Estimated Future Amortization Expense Related to Finite-Lived Purchased Intangible Assets (Detail) - USD ($) $ in Thousands | Jul. 04, 2015 | Jan. 03, 2015 |
Finite Lived Intangible Assets And Liabilities Future Amortization Expense [Line Items] | ||
2,015 | $ 427 | |
2,016 | 853 | |
2,017 | 755 | |
2,018 | 615 | |
2,019 | 615 | |
Thereafter | 274 | |
Finite Lived, Net Carrying Amount | $ 3,539 | $ 3,966 |
Acquisition-Related Contingen43
Acquisition-Related Contingent Consideration - Additional Information (Detail) $ in Millions | Nov. 19, 2010USD ($) |
Solar Implant Technologies | Milestone | |
Business Acquisition [Line Items] | |
Maximum amount of cash potentially earned in contingent compensation arrangements | $ 9 |
Reconciliation of Change in Fai
Reconciliation of Change in Fair Value Measurement of Contingent Consideration Liability (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Business Acquisition, Contingent Consideration [Line Items] | ||||
Opening balance | $ 1,108 | $ 1,435 | $ 1,134 | $ 1,384 |
Changes in fair value | (174) | 46 | (200) | 97 |
Closing balance | $ 934 | $ 1,481 | $ 934 | $ 1,481 |
Balance Sheet Classification of
Balance Sheet Classification of Contingent Consideration Liability (Detail) - USD ($) $ in Thousands | Jul. 04, 2015 | Jan. 03, 2015 |
Business Combination, Transactions [Line Items] | ||
Contingent consideration liability | $ 934 | $ 1,134 |
Other accrued liabilities | ||
Business Combination, Transactions [Line Items] | ||
Contingent consideration liability | 32 | 59 |
Other long-term liabilities | ||
Business Combination, Transactions [Line Items] | ||
Contingent consideration liability | $ 902 | $ 1,075 |
Quantitative Range of Significa
Quantitative Range of Significant Unobservable Inputs Used in Calculation of Fair Value of Continent Consideration Liability (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 04, 2015 | Jan. 03, 2015 | |
Business Acquisition, Contingent Consideration [Line Items] | ||
Fair Value | $ 934 | $ 1,134 |
Fair Value, Inputs, Level 3 | Revenue Earnout | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Valuation technique | Discounted cash flow | |
Fair Value | $ 934 | |
Fair Value, Inputs, Level 3 | Revenue Earnout | Weighted Average | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Weighted average cost of capital | 15.00% | |
Probability weighting of achieving revenue forecasts | 48.00% | |
Fair Value, Inputs, Level 3 | Revenue Earnout | Minimum | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Probability weighting of achieving revenue forecasts | 20.00% | |
Fair Value, Inputs, Level 3 | Revenue Earnout | Maximum | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Probability weighting of achieving revenue forecasts | 80.00% |
Warranty - Additional Informati
Warranty - Additional Information (Detail) | 6 Months Ended |
Jul. 04, 2015 | |
Warranties [Line Items] | |
Minimum product warranty range | 12 months |
Maximum product warranty range | 24 months |
Product warranty offer on sale | 3 months |
Warranty Provision Account (Det
Warranty Provision Account (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Accrued Warranty [Line Items] | ||||
Opening balance | $ 1,352 | $ 1,331 | $ 1,186 | $ 1,647 |
Expenditures incurred under warranties | (91) | (217) | (222) | (523) |
Accruals for product warranties issued during the reporting period | 203 | 219 | 600 | 504 |
Adjustments to previously existing warranty accruals | (186) | (177) | (286) | (472) |
Closing balance | $ 1,278 | $ 1,156 | $ 1,278 | $ 1,156 |
Balance Sheet Classification 49
Balance Sheet Classification of Warranty Provision Account (Detail) - USD ($) $ in Thousands | Jul. 04, 2015 | Apr. 04, 2015 | Jan. 03, 2015 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 31, 2013 |
Product Warranty [Line Items] | ||||||
Other accrued liabilities | $ 1,037 | $ 1,022 | ||||
Other long-term liabilities | 241 | 164 | ||||
Total warranty provision | $ 1,278 | $ 1,352 | $ 1,186 | $ 1,156 | $ 1,331 | $ 1,647 |
Guarantees - Additional Informa
Guarantees - Additional Information (Detail) $ in Millions | Jul. 04, 2015USD ($) |
Guarantor Obligations [Line Items] | |
Letters of credit and bank guarantees outstanding, amount | $ 1.8 |
Letters of credit and bank guarantees collateralized by restricted cash | $ 1.8 |
Cash, Cash Equivalents and Shor
Cash, Cash Equivalents and Short-Term Investments and Long-Term Investments (Detail) - USD ($) $ in Thousands | Jul. 04, 2015 | Jan. 03, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 56,996 | $ 68,623 |
Unrealized Holdings Gains | 28 | 19 |
Unrealized Holdings Losses | 4 | 20 |
Fair Value | 57,020 | 68,622 |
Money market funds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 10,566 | 16,534 |
Fair Value | 10,566 | 16,534 |
Cash | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 5,651 | 4,948 |
Fair Value | 5,651 | 4,948 |
Cash and Cash Equivalents | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 16,217 | 21,482 |
Fair Value | 16,217 | 21,482 |
Short-term Investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 31,520 | 29,590 |
Unrealized Holdings Gains | 21 | 15 |
Unrealized Holdings Losses | 2 | 7 |
Fair Value | 31,539 | 29,598 |
Short-term Investments | Commercial Paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 4,996 | 2,995 |
Unrealized Holdings Gains | 2 | |
Fair Value | 4,996 | 2,997 |
Short-term Investments | Corporate bonds and medium-term notes | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 14,236 | 21,203 |
Unrealized Holdings Gains | 7 | 2 |
Unrealized Holdings Losses | 2 | 6 |
Fair Value | 14,241 | 21,199 |
Short-term Investments | Municipal bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 3,291 | 5,392 |
Unrealized Holdings Gains | 3 | 11 |
Unrealized Holdings Losses | 1 | |
Fair Value | 3,294 | 5,402 |
Short-term Investments | U.S. treasury and agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 8,997 | |
Unrealized Holdings Gains | 11 | |
Fair Value | 9,008 | |
Other Long-term Investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 9,259 | 17,551 |
Unrealized Holdings Gains | 7 | 4 |
Unrealized Holdings Losses | 2 | 13 |
Fair Value | 9,264 | 17,542 |
Other Long-term Investments | Corporate bonds and medium-term notes | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 3,036 | 6,266 |
Unrealized Holdings Gains | 2 | 1 |
Unrealized Holdings Losses | 2 | 4 |
Fair Value | 3,036 | 6,263 |
Other Long-term Investments | Municipal bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,731 | 2,290 |
Unrealized Holdings Losses | 8 | |
Fair Value | 2,731 | 2,282 |
Other Long-term Investments | U.S. treasury and agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 3,492 | 8,995 |
Unrealized Holdings Gains | 5 | 3 |
Unrealized Holdings Losses | 1 | |
Fair Value | $ 3,497 | $ 8,997 |
Contractual Maturities of Avail
Contractual Maturities of Available-For-Sale Securities (Detail) $ in Thousands | Jul. 04, 2015USD ($) |
Amortized Cost | |
Amortized Cost, Due in one year or less | $ 42,086 |
Amortized Cost, Due after one through two years | 9,259 |
Amortized Cost | 51,345 |
Fair Value | |
Fair Value, Due in one year or less | 42,105 |
Fair Value, Due after one through two years | 9,264 |
Fair Value | $ 51,369 |
Fair Market Value of Investment
Fair Market Value of Investments with Unrealized Losses Not Deemed to be Other-Than Temporarily Impaired (Detail) - Corporate bonds and medium-term notes $ in Thousands | Jul. 04, 2015USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Unrealized Loss Position, Less than 12 Months, Fair Value | $ 5,041 |
Unrealized Loss Position, Less than 12 Months, Gross Unrealized Losses | 4 |
Unrealized Loss Position, Greater than 12 Months, Fair Value | 0 |
Unrealized Loss Position, Greater than 12 Months, Gross Unrealized Losses | $ 0 |
Fair Value Hierarchy of Availab
Fair Value Hierarchy of Available-for-Sale Securities Measured at Fair Value on Recurring Basis (Detail) $ in Thousands | Jul. 04, 2015USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | $ 51,369 |
Fair Value, Measurements, Recurring | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 51,369 |
Fair Value, Measurements, Recurring | Money market funds | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 10,566 |
Fair Value, Measurements, Recurring | U.S. treasury and agency securities | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 12,505 |
Fair Value, Measurements, Recurring | Commercial Paper | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 4,996 |
Fair Value, Measurements, Recurring | Corporate bonds and medium-term notes | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 17,277 |
Fair Value, Measurements, Recurring | Municipal bonds | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 6,025 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 21,070 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Money market funds | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 10,566 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | U.S. treasury and agency securities | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 10,504 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 30,299 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | U.S. treasury and agency securities | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 2,001 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Commercial Paper | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 4,996 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Corporate bonds and medium-term notes | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 17,277 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Municipal bonds | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | $ 6,025 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) | 6 Months Ended |
Jul. 04, 2015 | |
Maturity Period One | |
Derivative [Line Items] | |
Maturity of foreign currency derivative | 30 days |
Maturity Period Two | |
Derivative [Line Items] | |
Maturity of foreign currency derivative | 60 days |
Maturity Period Three | |
Derivative [Line Items] | |
Maturity of foreign currency derivative | 210 days |
Maturity Period Four | |
Derivative [Line Items] | |
Maturity of foreign currency derivative | 240 days |
Summary of Outstanding Derivati
Summary of Outstanding Derivative Instruments on Gross Basis as Recorded in Consolidated Balance Sheets (Detail) - Undesignated Hedges - USD ($) $ in Thousands | Jul. 04, 2015 | Jan. 03, 2015 | |
Derivatives, Fair Value [Line Items] | |||
Notional Amounts | $ 1,220 | $ 2,647 | |
Derivative Assets | [1] | 13 | 10 |
Derivative Liabilities | [2] | 2 | 4 |
Foreign currency forward contracts | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amounts | 1,220 | 2,647 | |
Derivative Assets | [1] | 13 | 10 |
Derivative Liabilities | [2] | $ 2 | $ 4 |
[1] | Prepaid expenses and other current assets | ||
[2] | Other accrued liabilities |
Equity - Additional Information
Equity - Additional Information (Detail) - USD ($) $ in Millions | Jul. 04, 2015 | Nov. 21, 2013 |
Equity, Class of Treasury Stock [Line Items] | ||
Stock repurchase authorized amount | $ 30 | |
Stock repurchase remains available for future stock repurchase | $ 10.7 |
Stock Repurchases (Detail)
Stock Repurchases (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Shares of common stock repurchased | 1,128 | 58 | 1,571 | 195 |
Cost of stock repurchased | $ 6,293 | $ 419 | $ 9,280 | $ 1,469 |
Average price paid per share | $ 5.55 | $ 7.21 | $ 5.88 | $ 7.49 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income by Component (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ 648 | $ 699 | $ 619 | $ 725 |
Other comprehensive income (loss) before reclassification | (39) | 4 | (10) | (22) |
Amounts reclassified from other comprehensive income | 0 | 0 | 0 | 0 |
Net current-period other comprehensive income (loss) | (39) | 4 | (10) | (22) |
Ending balance | 609 | 703 | 609 | 703 |
Accumulated Translation Adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 620 | 660 | 620 | 691 |
Other comprehensive income (loss) before reclassification | (35) | 15 | (35) | (16) |
Amounts reclassified from other comprehensive income | 0 | 0 | 0 | 0 |
Net current-period other comprehensive income (loss) | (35) | 15 | (35) | (16) |
Ending balance | 585 | 675 | 585 | 675 |
Accumulated Net Unrealized Investment Gain (Loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 28 | 39 | (1) | 34 |
Other comprehensive income (loss) before reclassification | (4) | (11) | 25 | (6) |
Amounts reclassified from other comprehensive income | 0 | 0 | 0 | 0 |
Net current-period other comprehensive income (loss) | (4) | (11) | 25 | (6) |
Ending balance | $ 24 | $ 28 | $ 24 | $ 28 |
Computation of Basic and Dilute
Computation of Basic and Diluted Income (Loss) Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Schedule Of Computation Of Basic And Diluted Earnings Per Common Share [Line Items] | ||||
Net income (loss) | $ 12 | $ (5,007) | $ (2,881) | $ (9,528) |
Weighted-average shares - basic | 22,630 | 23,927 | 22,929 | 23,892 |
Effect of dilutive potential common shares | 282 | 0 | 0 | 0 |
Weighted-average shares - diluted | 22,912 | 23,927 | 22,929 | 23,892 |
Net loss per share - basic and diluted | $ 0 | $ (0.21) | $ (0.13) | $ (0.40) |
Antidilutive shares based on employee awards excluded | 2,085 | 1,977 | 2,273 | 1,911 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) - 6 months ended Jul. 04, 2015 - Segment | Total |
Segment Reporting Disclosure [Line Items] | |
Number of reportable segments | 2 |
Allocation of corporate expenses to the segments | 3.00% |
Information for Each Reportable
Information for Each Reportable Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Segment Reporting Information [Line Items] | ||||
Total segment net revenues | $ 20,458 | $ 14,715 | $ 40,343 | $ 31,730 |
Unallocated costs | (998) | (2,146) | (2,118) | (3,637) |
Income (loss) from operations | 283 | (5,246) | (2,657) | (9,970) |
Interest income and other, net | (13) | 120 | 66 | 192 |
Income (loss) before income taxes | 270 | (5,126) | (2,591) | (9,778) |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Income (loss) from operations | 1,281 | (3,100) | (539) | (6,333) |
Thin-film Equipment Segment | ||||
Segment Reporting Information [Line Items] | ||||
Total segment net revenues | 11,494 | 3,762 | 22,122 | 12,809 |
Thin-film Equipment Segment | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Income (loss) from operations | 6 | (5,667) | (3,291) | (9,808) |
Photonics | ||||
Segment Reporting Information [Line Items] | ||||
Total segment net revenues | 8,964 | 10,953 | 18,221 | 18,921 |
Photonics | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Income (loss) from operations | $ 1,275 | $ 2,567 | $ 2,752 | $ 3,475 |
Assets for Each Reportable Segm
Assets for Each Reportable Segment (Detail) - USD ($) $ in Thousands | Jul. 04, 2015 | Jan. 03, 2015 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Cash, cash equivalents and investments | $ 57,020 | $ 68,622 |
Restricted cash | 1,780 | 1,780 |
Deferred income taxes | 63 | 5 |
Other current assets | 929 | 989 |
Common property, plant and equipment | 1,056 | 1,083 |
Consolidated total assets | 106,733 | 120,275 |
Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated total assets | 45,885 | 47,796 |
Operating Segments | Thin-film Equipment Segment | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated total assets | 28,791 | 30,670 |
Operating Segments | Photonics | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated total assets | $ 17,094 | $ 17,126 |
Restructuring Charges - Additio
Restructuring Charges - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jul. 04, 2015 | Jun. 28, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||
Percentage of reduction of global workforce | 3.00% | 6.00% |
Reduction in salary, wages and other employee-related expenses due to implementation of plan | $ 1.4 | $ 2.1 |
Changes in Restructuring Reserv
Changes in Restructuring Reserves (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||||
Beginning balance | $ 0 | $ 0 | $ 0 | $ 0 |
Provision for restructuring reserves | 0 | 61 | 148 | 288 |
Cash payments made | 0 | (61) | (148) | (288) |
Ending balance | $ 0 | $ 0 | $ 0 | $ 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Income Taxes [Line Items] | ||||
Provision for (benefit from) income taxes | $ 258,000 | $ (119,000) | $ 290,000 | $ (250,000) |
Income tax charge for audit considerations in foreign jurisdictions | $ 262,000 |