Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 02, 2016 | Aug. 02, 2016 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 2, 2016 | |
Document Fiscal Year Focus | 2,016 | |
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 | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 20,923,678 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jul. 02, 2016 | Jan. 02, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 18,733 | $ 13,746 |
Short-term investments | 16,655 | 23,208 |
Trade and other accounts receivable, net of allowances of $0 at both July 2, 2016 and at January 2, 2016 | 16,808 | 12,310 |
Inventories | 22,487 | 18,760 |
Prepaid expenses and other current assets | 1,621 | 1,712 |
Total current assets | 76,304 | 69,736 |
Property, plant and equipment, net | 11,727 | 11,921 |
Long-term investments | 5,226 | 9,673 |
Restricted cash | 1,780 | 1,780 |
Intangible assets, net of amortization of $5,702 at July 2, 2016 and $5,275 at January 2, 2016 | 2,685 | 3,112 |
Deferred income taxes and other long-term assets | 945 | 1,459 |
Total assets | 98,667 | 97,681 |
Current liabilities: | ||
Accounts payable | 4,040 | 5,950 |
Accrued payroll and related liabilities | 4,321 | 4,066 |
Other accrued liabilities | 3,617 | 5,632 |
Customer advances | 14,979 | 3,625 |
Total current liabilities | 26,957 | 19,273 |
Other long-term liabilities | 2,883 | 2,411 |
Stockholders' equity: | ||
Common stock, $0.001 par value | 21 | 20 |
Additional paid-in capital | 169,059 | 166,514 |
Treasury stock, 4,845 shares at July 2, 2016 and January 2, 2016 | (28,489) | (28,489) |
Accumulated other comprehensive income | 491 | 412 |
Accumulated deficit | (72,255) | (62,460) |
Total stockholders' equity | 68,827 | 75,997 |
Total liabilities and stockholders' equity | $ 98,667 | $ 97,681 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Jul. 02, 2016 | Jan. 02, 2016 |
Net of allowances of trade, note and other accounts receivable | $ 0 | $ 0 |
Net of amortization of intangible assets | $ 5,702 | $ 5,275 |
Common stock, par value | $ 0.001 | $ 0.001 |
Treasury Stock, shares | 4,845 | 4,845 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2016 | Jul. 04, 2015 | Jul. 02, 2016 | Jul. 04, 2015 | |
Net revenues: | ||||
Systems and components | $ 13,083 | $ 18,646 | $ 26,364 | $ 36,728 |
Technology development | 1,835 | 1,812 | 2,218 | 3,615 |
Total net revenues | 14,918 | 20,458 | 28,582 | 40,343 |
Cost of net revenues: | ||||
Systems and components | 7,514 | 11,487 | 16,465 | 23,072 |
Technology development | 1,277 | 1,165 | 2,135 | 2,544 |
Total cost of net revenues | 8,791 | 12,652 | 18,600 | 25,616 |
Gross profit | 6,127 | 7,806 | 9,982 | 14,727 |
Operating expenses: | ||||
Research and development | 4,977 | 2,947 | 10,154 | 7,555 |
Selling, general and administrative | 4,957 | 4,576 | 9,952 | 9,829 |
Total operating expenses | 9,934 | 7,523 | 20,106 | 17,384 |
Income (loss) from operations | (3,807) | 283 | (10,124) | (2,657) |
Interest income and other income (expense), net | 87 | (13) | 125 | 66 |
Income (loss) before income taxes | (3,720) | 270 | (9,999) | (2,591) |
Provision for (benefit from) income taxes | (230) | 258 | (204) | 290 |
Net income (loss) | $ (3,490) | $ 12 | $ (9,795) | $ (2,881) |
Net income (loss) per share: | ||||
Basic and diluted | $ (0.17) | $ (0.48) | $ (0.13) | |
Weighted average common shares outstanding: | ||||
Basic | 20,691 | 22,630 | 20,621 | 22,929 |
Diluted | 20,691 | 22,912 | 20,621 | 22,929 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2016 | Jul. 04, 2015 | Jul. 02, 2016 | Jul. 04, 2015 | |
Net income (loss) | $ (3,490) | $ 12 | $ (9,795) | $ (2,881) |
Other comprehensive income (loss), before tax: | ||||
Change in unrealized net gain on available-for-sale investments | 13 | (4) | 57 | 25 |
Foreign currency translation gains (losses) | (45) | (35) | 22 | (35) |
Other comprehensive income (loss), before tax | (32) | (39) | 79 | (10) |
Income taxes related to items in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | (32) | (39) | 79 | (10) |
Comprehensive loss | $ (3,522) | $ (27) | $ (9,716) | $ (2,891) |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 02, 2016 | Jul. 04, 2015 | |
Operating activities | ||
Net loss | $ (9,795) | $ (2,881) |
Adjustments to reconcile net loss to net cash and cash equivalents provided by (used in) operating activities: | ||
Depreciation and amortization | 2,658 | 2,324 |
Net amortization of investment premiums and discounts | 63 | 200 |
Equity-based compensation | 1,991 | 1,663 |
Change in the fair value of acquisition-related contingent consideration | (142) | (200) |
Deferred income taxes | 9 | (10) |
Loss on disposal of equipment | 91 | |
Changes in operating assets and liabilities | 911 | (922) |
Total adjustments | 5,490 | 3,146 |
Net cash and cash equivalents provided by (used in) operating activities | (4,305) | 265 |
Investing activities | ||
Purchases of investments | (7,736) | (16,097) |
Proceeds from sales and maturities of investments | 18,730 | 20,200 |
Proceeds from sale of equipment | 11 | |
Purchases of leasehold improvements and equipment | (2,039) | (1,534) |
Net cash and cash equivalents provided by investing activities | 8,955 | 2,580 |
Financing activities | ||
Net proceeds from issuance of common stock | 715 | 910 |
Common stock repurchases | (8,868) | |
Taxes paid related to net share settlement | (401) | (117) |
Net cash and cash equivalents used in financing activities | 314 | (8,075) |
Effect of exchange rate changes on cash and cash equivalents | 23 | (35) |
Net increase (decrease) in cash and cash equivalents | 4,987 | (5,265) |
Cash and cash equivalents at beginning of period | 13,746 | 21,482 |
Cash and cash equivalents at end of period | $ 18,733 | $ 16,217 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jul. 02, 2016 | |
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 2, 2016 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 2, 2016 (“2015 Form 10-K”). Intevac’s results of operations for the three and six months ended July 2, 2016 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. 02, 2016 | |
Recent Accounting Pronouncements | 2. Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718) The FASB has issued several more amendments to the new revenue standard ASU 2014-09, as amended by ASU 2015-14: March 2016—ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) April 2016—ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing May 2016—ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow Scope Improvements and Practical Expedients We are currently assessing how the adoption of these new standards will impact our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326). |
Inventories
Inventories | 6 Months Ended |
Jul. 02, 2016 | |
Inventories | 3. Inventories Inventories are stated at the lower of average cost or market and consist of the following: July 2, January 2, 2016 2016 (In thousands) Raw materials $ 10,718 $ 11,081 Work-in-progress 9,706 4,365 Finished goods 2,063 3,314 $ 22,487 $ 18,760 Finished goods inventory consists primarily of completed systems at customer sites that are undergoing installation and acceptance testing. |
Equity-Based Compensation
Equity-Based Compensation | 6 Months Ended |
Jul. 02, 2016 | |
Equity-Based Compensation | 4. Equity-Based Compensation At July 2, 2016, 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”), performance units and performance bonus awards. 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 entry date into 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 2, 2016 and July 4, 2015 was as follows: Three Months Ended Six Months Ended July 2, 2016 July 4, 2015 July 2, 2016 July 4, 2015 (In thousands) Equity-based compensation by type of award: Stock options $ 209 $ 125 $ 485 $ 442 RSUs 480 395 1,114 735 Employee stock purchase plan 191 280 392 486 Total equity-based compensation $ 880 $ 800 $ 1,991 $ 1,663 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 2, 2016 and changes during the six months ended July 2, 2016 were as follows: Shares Weighted Average Options outstanding at January 2, 2016 2,433,647 $ 7.52 Options granted 394,750 $ 4.79 Options cancelled and forfeited (63,799 ) $ 12.89 Options exercised (975 ) $ 4.58 Options outstanding at July 2, 2016 2,763,623 $ 7.01 Vested and expected to vest at July 2, 2016 2,604,501 $ 7.11 Options exercisable at July 2, 2016 1,739,195 $ 7.82 Intevac issued 187,214 shares under the ESPP during the six months ended July 2, 2016. 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 2, July 4, July 2, July 4, Stock Options: Weighted-average fair value of grants per share $ 1.75 $ 2.05 $ 1.74 $ 2.07 Expected volatility 44.14 % 46.13 % 44.11 % 46.26 % Risk free interest rate 0.94 % 1.44 % 0.94 % 1.43 % Expected term of options (in years) 4.3 4.0 4.3 4.0 Dividend yield None None None None Six Months Ended July 2, 2016 July 4, 2015 Stock Purchase Rights: Weighted-average fair value of grants per share $ 1.54 $ 2.26 Expected volatility 39.33 % 44.05 % Risk free interest rate 0.76 % 0.39 % Expected term of purchase rights (in years) 1.93 1.22 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 2, 2016 553,584 $ 6.16 Granted 754,652 $ 4.17 Vested (257,007 ) $ 6.49 Cancelled and forfeited (83,079 ) $ 4.70 Non-vested RSUs at July 2, 2016 968,150 $ 4.64 Time-based RSUs are converted into shares of Intevac common stock upon vesting on a one-for-one basis. Time-based RSUs typically are scheduled to vest over four years. Vesting of time-based 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. Market condition-based RSUs vest upon the achievement of certain market conditions (our stock performance) during a set performance period (typically five years) subject to the grantee’s continued service with Intevac through the date the applicable market condition is achieved. The fair value is based on the values calculated under the Monte Carlo simulation model on the grant date. Compensation cost is not adjusted in future periods for subsequent changes in the expected outcome of market related conditions. The compensation expense is recognized over the derived service period. We granted 125,000 of such awards to certain executive officers in the six months ended July 2, 2016. These awards have a derived service period of 2.8 years. Intevac estimated the weighted-average fair value of market condition-based RSUs using the following weighted-average assumptions: Six Months Ended July 2, 2016 Weighted-average fair value of grants per share $ 2.46 Expected volatility 47.65 % Risk free interest rate 1.35 % Expected term (in years) 4.79 Dividend yield None In fiscal 2016 and fiscal 2015, 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 2, 2016 and July 4, 2015, 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 2016, the annual 2015 bonus for certain participants was settled with RSUs with one year vesting. 34 participants were granted stock awards to receive 266,000 shares of common stock with a weighted average grant date fair value of $4.40 per share. In February 2015, the 2014 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 $129,000 and $243,000, respectively, for the three and six months ended July 2, 2016 and $123,000 and $72,000, respectively, for the three and six months ended July 4, 2015. Performance-based RSUs were granted in fiscal 2013 to certain executive officers and were also subject to the achievement of specified performance goals. These performance-based RSUs became eligible to vest only if performance goals were achieved and then actually will vest only if the grantee remained employed by Intevac through each applicable vesting date. The fair value of these performance-based RSUs was estimated on the date of grant and assumed that the specified performance goals would be achieved. If the goals were achieved, these awards would vest over a specified remaining service period, provided that the grantee remained employed by Intevac through each scheduled vesting date. If the performance goals were not met, no compensation expense was recognized and any previously recognized compensation expense was reversed. The expected cost of each award was reflected over the service period and was reduced for estimated forfeitures. For performance-based awards granted during fiscal 2013, the performance goals required the achievement of targeted revenues and adjusted annual operating profit levels measured at the end of two and three-year periods. In early 2016, the Compensation Committee assessed performance against the goals following the completion of the 3-year performance period for Tranche 2 and determined that 4,920 shares of the awards had been earned and therefore were eligible for time-based vesting. 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. 02, 2016 | |
Purchased Intangible Assets | 5. Purchased Intangible Assets Details of finite-lived intangible assets by segment as of July 2, 2016, are as follows. July 2, 2016 Gross Accumulated Net (In thousands) Thin-film Equipment $ 7,172 $ (4,757 ) $ 2,415 Photonics 1,215 (945 ) 270 $ 8,387 $ (5,702 ) $ 2,685 Total amortization expense of finite-lived intangibles for the three and six months ended July 2, 2016 was $213,000 and $427,000. As of July 2, 2016, future amortization expense is expected to be as follows. (In thousands) 2016 $ 427 2017 754 2018 615 2019 615 2020 274 $ 2,685 |
Acquisition-Related Contingent
Acquisition-Related Contingent Consideration | 6 Months Ended |
Jul. 02, 2016 | |
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 2, 2016 based on probability-based forecasted revenues reflecting Intevac’s own assumptions concerning future revenue from such products. As of July 2, 2016, 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 months ended July 2, 2016 and July 4, 2015: Three Months Ended Six Months Ended July 2, 2016 July 4, 2015 July 2, 2016 July 4, 2015 (In thousands) Opening balance $ 906 $ 1,108 $ 890 $ 1,134 Changes in fair value (158 ) (174 ) (142 ) (200 ) Closing balance $ 748 $ 934 $ 748 $ 934 The following table displays the balance sheet classification of the contingent consideration liability account at July 2, 2016 and at January 2, 2016: July 2, January 2, (In thousands) Other accrued liabilities $ 106 $ 179 Other long-term liabilities 642 711 Total acquisition-related contingent consideration $ 748 $ 890 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 2, 2016. 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 2, 2016 Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (In thousands, except for percentages) Revenue Earnout $ 748 Discounted cash flow Weighted average cost of capital Probability weighting of achieving 13.5% 10.0% - 80.0% (30.3%) |
Warranty
Warranty | 6 Months Ended |
Jul. 02, 2016 | |
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 (“DCP”) manufacturing systems the warranty typically ranges between 12 and 24 months from customer acceptance. 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 2, 2016 and July 4, 2015: Three Months Ended Six Months Ended July 2, 2016 July 4, 2015 July 2, 2016 July 4, 2015 (In thousands) Opening balance $ 776 $ 1,352 $ 982 $ 1,186 Expenditures incurred under warranties (106 ) (91 ) (303 ) (222 ) Accruals for product warranties issued during the reporting period 61 203 174 600 Adjustments to previously existing warranty accruals (139 ) (186 ) (261 ) (286 ) Closing balance $ 592 $ 1,278 $ 592 $ 1,278 The following table displays the balance sheet classification of the warranty provision account at July 2, 2016 and at January 2, 2016: July 2, January 2, 2016 2016 (In thousands) Other accrued liabilities $ 543 $ 835 Other long-term liabilities 49 147 Total warranty provision $ 592 $ 982 |
Guarantees
Guarantees | 6 Months Ended |
Jul. 02, 2016 | |
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 2, 2016, 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. 02, 2016 | |
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 2, 2016 Amortized Unrealized Unrealized Fair Value (In thousands) Cash and cash equivalents: Cash $ 9,442 $ — $ — $ 9,442 Money market funds 9,291 — — 9,291 Total cash and cash equivalents $ 18,733 $ — $ — $ 18,733 Short-term investments: Commercial paper $ 1,091 $ — $ 1 $ 1,090 Corporate bonds and medium-term notes 6,651 3 1 6,653 Municipal bonds 3,135 1 — 3,136 U.S. treasury and agency securities 5,773 4 1 5,776 Total short-term investments $ 16,650 $ 8 $ 3 $ 16,655 Long-term investments: Corporate bonds and medium-term notes $ 5,214 $ 12 $ — $ 5,226 Total long-term investments $ 5,214 $ 12 $ — $ 5,226 Total cash, cash equivalents, and investments $ 40,597 $ 20 $ 3 $ 40,614 January 2, 2016 Amortized Unrealized Unrealized Fair Value (In thousands) Cash and cash equivalents: Cash $ 6,208 $ — $ — $ 6,208 Money market funds 7,538 — — 7,538 Total cash and cash equivalents $ 13,746 $ — $ — $ 13,746 Short-term investments: Corporate bonds and medium-term notes $ 9,978 $ — $ 7 $ 9,971 Municipal bonds 4,238 — — 4,238 U.S. treasury and agency securities 8,999 — — 8,999 Total short-term investments $ 23,215 $ — $ 7 $ 23,208 Long-term investments: Corporate bonds and medium-term notes $ 6,212 $ — $ 23 $ 6,189 U.S. treasury and agency securities 3,494 — 10 3,484 Total long-term investments $ 9,706 $ — $ 33 $ 9,673 Total cash, cash equivalents, and investments $ 46,667 $ — $ 40 $ 46,627 The contractual maturities of available-for-sale securities at July 2, 2016 are presented in the following table. Amortized Fair Value (In thousands) Due in one year or less $ 25,941 $ 25,946 Due after one through two years 5,214 5,226 $ 31,155 $ 31,172 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 2, 2016. July 2, 2016 In Loss Position for Less than 12 Months In Loss Position for Fair Value Gross Unrealized Fair Value Gross Unrealized (In thousands) Commercial paper $ 1,090 $ 1 $ — $ — Corporate bonds and medium-term notes 3,214 1 — — U.S. treasury and agency securities 1,271 1 — — $ 5,575 $ 3 $ — $ — 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 2, 2016. Fair Value Measurements at July 2, 2016 Total Level 1 Level 2 (In thousands) Recurring fair value measurements: Available-for-sale securities Money market funds $ 9,291 $ 9,291 $ — U.S. treasury and agency securities 5,776 3,501 2,275 Commercial paper 1,090 — 1,090 Corporate bonds and medium-term notes 11,879 — 11,879 Municipal bonds 3,136 — 3,136 Total recurring fair value measurements $ 31,172 $ 12,792 $ 18,380 |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jul. 02, 2016 | |
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 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 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 2, 2016 and January 2, 2016: Notional Amounts Derivative Assets Derivative Liabilities Derivative Instrument July 2, 2016 January 2, 2016 July 2, 2016 January 2, 2016 July 2, 2016 January 2, 2016 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 $ 910 $ 924 (a ) $ — (a ) $ 1 (b ) $ 6 (b ) $ 4 Total Hedges $ 910 $ 924 $ — $ 1 $ 6 $ 4 (a) Prepaid expenses and other current assets (b) Other accrued liabilities |
Equity
Equity | 6 Months Ended |
Jul. 02, 2016 | |
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 2, 2016, $1.5 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 2, 2016 July 4, 2015 July 2, 2016 July 4, 2015 (In thousands, except per share amounts) Shares of common stock repurchased — 1,128 — 1,571 Cost of stock repurchased $ — $ 6,293 $ — $ 9,280 Average price paid per share $ — $ 5.55 $ — $ 5.88 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 2, 2016 and July 4, 2015, are as follows. Three Months Ended Six Months Ended July 2, 2016 Foreign Unrealized Total Foreign Unrealized Total (In thousands) Beginning balance $ 519 $ 4 $ 523 $ 452 $ (40 ) $ 412 Other comprehensive income (loss) before reclassification (45 ) 13 (32 ) 22 57 79 Amounts reclassified from other comprehensive income — — — — — — Net current-period other comprehensive income (loss) (45 ) 13 (32 ) 22 57 79 Ending balance $ 474 $ 17 $ 491 $ 474 $ 17 $ 491 Three Months Ended Six Months Ended July 4, 2015 Foreign Unrealized Total Foreign Unrealized Total (In thousands) Beginning balance $ 620 $ 28 $ 648 $ 620 $ (1 ) $ 619 Other comprehensive income (loss) before reclassification (35 ) (4 ) (39 ) (35 ) 25 (10 ) Amounts reclassified from other comprehensive income — — — — — — Net current-period other comprehensive income (loss) (35 ) (4 ) (39 ) (35 ) 25 (10 ) Ending balance $ 585 $ 24 $ 609 $ 585 $ 24 $ 609 |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 6 Months Ended |
Jul. 02, 2016 | |
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 2, 2016 July 4, 2015 July 2, 2016 July 4, 2015 (In thousands, except per share amounts) Net income (loss) $ (3,490 ) $ 12 $ (9,795 ) $ (2,881 ) Weighted-average shares – basic 20,691 22,630 20,621 22,929 Effect of dilutive potential common shares — 282 — — Weighted-average shares – diluted 20,691 22,912 20,621 22,929 Net loss per share – basic and diluted $ (0.17 ) $ — $ (0.48 ) $ (0.13 ) The following potentially dilutive securities were excluded (as common stock equivalents) from the computation of diluted net income (loss) per share for the periods presented as their effect would have been antidilutive: Three Months Ended Six Months Ended July 2, 2016 July 4, 2015 July 2, 2016 July 4, 2015 (In thousands) Stock options to purchase common stock 2,764 2,309 2,764 2,646 RSUs 968 43 968 552 Employee stock purchase plan 180 — 180 162 |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jul. 02, 2016 | |
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 2, 2016 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, such as for the hard drive, solar cell and DCP industries, as well as other adjacent thin-film markets. The Photonics segment develops compact, cost-effective, high-sensitivity digital-optical products for the capture and display of low-light images. 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 2, 2016 and July 4, 2015 is as follows: Net Revenues Three Months Ended Six Months Ended July 2, 2016 July 4, 2015 July 2, July 4, (In thousands) Thin-film Equipment $ 6,088 $ 11,494 $ 11,668 $ 22,122 Photonics 8,830 8,964 16,914 18,221 Total segment net revenues $ 14,918 $ 20,458 $ 28,582 $ 40,343 Operating Income (Loss) Three Months Ended Six Months Ended July 2, 2016 July 4, 2015 July 2, July 4, 2015 (In thousands) Thin-film Equipment $ (3,674 ) $ 6 $ (9,119 ) $ (3,291 ) Photonics 1,512 1,275 1,919 2,752 Total income (loss) from segment operations (2,162 ) 1,281 (7,200 ) (539 ) Unallocated costs (1,645 ) (998 ) (2,924 ) (2,118 ) Income (loss) from operations (3,807 ) 283 (10,124 ) (2,657 ) Interest income and other income (expense), net 87 (13 ) 125 66 Income (loss) before income taxes $ (3,720 ) $ 270 $ (9,999 ) $ (2,591 ) Total assets for each reportable segment as of July 2, 2016 and January 2, 2016 are as follows: Assets July 2, January 2, (In thousands) Thin-film Equipment $ 36,278 $ 29,528 Photonics 15,479 16,029 Total segment assets 51,757 45,557 Cash, cash equivalents and investments 40,614 46,627 Restricted cash 1,780 1,780 Deferred income taxes 3 12 Other current assets 1,147 1,052 Common property, plant and equipment 2,447 1,218 Other assets 919 1,435 Consolidated total assets $ 98,667 $ 97,681 |
Restructuring Charges
Restructuring Charges | 6 Months Ended |
Jul. 02, 2016 | |
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 reduced salary, wages and other employee-related expenses by approximately $1.4 million on an annual basis. The changes in restructuring reserves associated with the Plan for the six months ended July 4, 2015 are as follows: July 4, 2015 Severance and (In thousands) Beginning balance $ — Provision for restructuring reserves 148 Cash payments made (148 ) Ending balance $ — |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 02, 2016 | |
Income Taxes | 15. Income Taxes Intevac recorded income tax benefits of $230,000 and $204,000 for the three and six months ended July 2, 2016, respectively, and tax provisions of $258,000 and $290,000 for the three and six months ended July 4, 2015, respectively. Intevac recorded the following discrete items for audit considerations in foreign jurisdictions: a $281,000 income tax benefit during the three months ended July 2, 2016 and a $262,000 income tax charge during the three months ended July 4, 2015. The income tax provisions (benefits) for the three and six 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 benefits on the U.S. net operating loss and on the Singapore net operating loss for the three and six month periods ended July 2, 2016 and July 4, 2015 due to having full valuation allowances on the U.S. deferred tax assets and 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 carryforwards, 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. The Inland Revenue Authority of Singapore (“IRAS”) is currently conducting a review of the fiscal 2009 through 2012 tax returns of the Company’s wholly-owned subsidiary, Intevac Asia Pte. Ltd. IRAS has challenged the Company’s tax position with respect to certain aspects of the Company’s transfer pricing. Under Singapore tax law, the Company must pay all contested taxes and the related interest to have the right to defend its position. As a result, the Company made deposits of $318,000 for the 2009 tax year in fiscal 2014 and $1.1 million for the 2010 tax year in fiscal 2015, respectively. In June 2016, IRAS allowed the deduction of a portion of the challenged deductions and the Company received a partial refund of $517,000 of the contested taxes. Accordingly, the Company derecognized a portion of the tax accrual of approximately $281,000 by reducing the income tax provision by $281,000. The contested tax deposits of $919,000 and $1.4 million are included in other long-term assets at July 2, 2016 and January 2, 2016, respectively, on the condensed consolidated balance sheets. The ultimate outcome of this examination is subject to uncertainty. The Company’s management and its advisors continue to believe that the Company is “more likely than not” to successfully defend that the tax treatment was proper and in accordance with Singapore tax regulations. Based on the information currently available, the Company does not anticipate a significant increase or decrease to its unrecognized tax benefits for this matter within the next twelve months. We believe that adequate amounts have been reserved for any adjustments that may ultimately result from this or other examinations. Presently, there are no other active income tax examinations in the jurisdictions where Intevac operates. |
Contingencies
Contingencies | 6 Months Ended |
Jul. 02, 2016 | |
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. 02, 2016 | |
Summary of Inventories | Inventories are stated at the lower of average cost or market and consist of the following: July 2, January 2, 2016 2016 (In thousands) Raw materials $ 10,718 $ 11,081 Work-in-progress 9,706 4,365 Finished goods 2,063 3,314 $ 22,487 $ 18,760 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 6 Months Ended |
Jul. 02, 2016 | |
Effect of Recording Equity-Based Compensation | The effect of recording equity-based compensation for the three and six months ended July 2, 2016 and July 4, 2015 was as follows: Three Months Ended Six Months Ended July 2, 2016 July 4, 2015 July 2, 2016 July 4, 2015 (In thousands) Equity-based compensation by type of award: Stock options $ 209 $ 125 $ 485 $ 442 RSUs 480 395 1,114 735 Employee stock purchase plan 191 280 392 486 Total equity-based compensation $ 880 $ 800 $ 1,991 $ 1,663 |
Option Activity and Changes | Option activity as of July 2, 2016 and changes during the six months ended July 2, 2016 were as follows: Shares Weighted Average Options outstanding at January 2, 2016 2,433,647 $ 7.52 Options granted 394,750 $ 4.79 Options cancelled and forfeited (63,799 ) $ 12.89 Options exercised (975 ) $ 4.58 Options outstanding at July 2, 2016 2,763,623 $ 7.01 Vested and expected to vest at July 2, 2016 2,604,501 $ 7.11 Options exercisable at July 2, 2016 1,739,195 $ 7.82 |
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 2, July 4, July 2, July 4, Stock Options: Weighted-average fair value of grants per share $ 1.75 $ 2.05 $ 1.74 $ 2.07 Expected volatility 44.14 % 46.13 % 44.11 % 46.26 % Risk free interest rate 0.94 % 1.44 % 0.94 % 1.43 % Expected term of options (in years) 4.3 4.0 4.3 4.0 Dividend yield None None None None Six Months Ended July 2, 2016 July 4, 2015 Stock Purchase Rights: Weighted-average fair value of grants per share $ 1.54 $ 2.26 Expected volatility 39.33 % 44.05 % Risk free interest rate 0.76 % 0.39 % Expected term of purchase rights (in years) 1.93 1.22 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 2, 2016 553,584 $ 6.16 Granted 754,652 $ 4.17 Vested (257,007 ) $ 6.49 Cancelled and forfeited (83,079 ) $ 4.70 Non-vested RSUs at July 2, 2016 968,150 $ 4.64 |
Weighted Average Fair Value of Market Condition Based RSUs | Intevac estimated the weighted-average fair value of market condition-based RSUs using the following weighted-average assumptions: Six Months Ended July 2, 2016 Weighted-average fair value of grants per share $ 2.46 Expected volatility 47.65 % Risk free interest rate 1.35 % Expected term (in years) 4.79 Dividend yield None |
Purchased Intangible Assets (Ta
Purchased Intangible Assets (Tables) | 6 Months Ended |
Jul. 02, 2016 | |
Details of Finite-lived Intangible Assets by Segment | Details of finite-lived intangible assets by segment as of July 2, 2016, are as follows. July 2, 2016 Gross Accumulated Net (In thousands) Thin-film Equipment $ 7,172 $ (4,757 ) $ 2,415 Photonics 1,215 (945 ) 270 $ 8,387 $ (5,702 ) $ 2,685 |
Future Amortization Expense | As of July 2, 2016, future amortization expense is expected to be as follows. (In thousands) 2016 $ 427 2017 754 2018 615 2019 615 2020 274 $ 2,685 |
Acquisition-Related Contingen26
Acquisition-Related Contingent Consideration (Tables) | 6 Months Ended |
Jul. 02, 2016 | |
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 months ended July 2, 2016 and July 4, 2015: Three Months Ended Six Months Ended July 2, 2016 July 4, 2015 July 2, 2016 July 4, 2015 (In thousands) Opening balance $ 906 $ 1,108 $ 890 $ 1,134 Changes in fair value (158 ) (174 ) (142 ) (200 ) Closing balance $ 748 $ 934 $ 748 $ 934 |
Balance Sheet Classification of Contingent Consideration Liability | The following table displays the balance sheet classification of the contingent consideration liability account at July 2, 2016 and at January 2, 2016: July 2, January 2, (In thousands) Other accrued liabilities $ 106 $ 179 Other long-term liabilities 642 711 Total acquisition-related contingent consideration $ 748 $ 890 |
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 2, 2016. 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 2, 2016 Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (In thousands, except for percentages) Revenue Earnout $ 748 Discounted cash flow Weighted average cost of capital Probability weighting of achieving 13.5% 10.0% - 80.0% (30.3%) |
Warranty (Tables)
Warranty (Tables) | 6 Months Ended |
Jul. 02, 2016 | |
Activity in Warranty Provision Account | The following table displays the activity in the warranty provision account for the three and six months ended July 2, 2016 and July 4, 2015: Three Months Ended Six Months Ended July 2, 2016 July 4, 2015 July 2, 2016 July 4, 2015 (In thousands) Opening balance $ 776 $ 1,352 $ 982 $ 1,186 Expenditures incurred under warranties (106 ) (91 ) (303 ) (222 ) Accruals for product warranties issued during the reporting period 61 203 174 600 Adjustments to previously existing warranty accruals (139 ) (186 ) (261 ) (286 ) Closing balance $ 592 $ 1,278 $ 592 $ 1,278 The following table displays the balance sheet classification of the warranty provision account at July 2, 2016 and at January 2, 2016: July 2, January 2, 2016 2016 (In thousands) Other accrued liabilities $ 543 $ 835 Other long-term liabilities 49 147 Total warranty provision $ 592 $ 982 |
Cash, Cash Equivalents and In28
Cash, Cash Equivalents and Investments (Tables) | 6 Months Ended |
Jul. 02, 2016 | |
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 2, 2016 Amortized Unrealized Unrealized Fair Value (In thousands) Cash and cash equivalents: Cash $ 9,442 $ — $ — $ 9,442 Money market funds 9,291 — — 9,291 Total cash and cash equivalents $ 18,733 $ — $ — $ 18,733 Short-term investments: Commercial paper $ 1,091 $ — $ 1 $ 1,090 Corporate bonds and medium-term notes 6,651 3 1 6,653 Municipal bonds 3,135 1 — 3,136 U.S. treasury and agency securities 5,773 4 1 5,776 Total short-term investments $ 16,650 $ 8 $ 3 $ 16,655 Long-term investments: Corporate bonds and medium-term notes $ 5,214 $ 12 $ — $ 5,226 Total long-term investments $ 5,214 $ 12 $ — $ 5,226 Total cash, cash equivalents, and investments $ 40,597 $ 20 $ 3 $ 40,614 January 2, 2016 Amortized Unrealized Unrealized Fair Value (In thousands) Cash and cash equivalents: Cash $ 6,208 $ — $ — $ 6,208 Money market funds 7,538 — — 7,538 Total cash and cash equivalents $ 13,746 $ — $ — $ 13,746 Short-term investments: Corporate bonds and medium-term notes $ 9,978 $ — $ 7 $ 9,971 Municipal bonds 4,238 — — 4,238 U.S. treasury and agency securities 8,999 — — 8,999 Total short-term investments $ 23,215 $ — $ 7 $ 23,208 Long-term investments: Corporate bonds and medium-term notes $ 6,212 $ — $ 23 $ 6,189 U.S. treasury and agency securities 3,494 — 10 3,484 Total long-term investments $ 9,706 $ — $ 33 $ 9,673 Total cash, cash equivalents, and investments $ 46,667 $ — $ 40 $ 46,627 |
Contractual Maturities of Available-for-Sale Securities | The contractual maturities of available-for-sale securities at July 2, 2016 are presented in the following table. Amortized Fair Value (In thousands) Due in one year or less $ 25,941 $ 25,946 Due after one through two years 5,214 5,226 $ 31,155 $ 31,172 |
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 2, 2016. July 2, 2016 In Loss Position for Less than 12 Months In Loss Position for Fair Value Gross Unrealized Fair Value Gross Unrealized (In thousands) Commercial paper $ 1,090 $ 1 $ — $ — Corporate bonds and medium-term notes 3,214 1 — — U.S. treasury and agency securities 1,271 1 — — $ 5,575 $ 3 $ — $ — |
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 2, 2016. Fair Value Measurements at July 2, 2016 Total Level 1 Level 2 (In thousands) Recurring fair value measurements: Available-for-sale securities Money market funds $ 9,291 $ 9,291 $ — U.S. treasury and agency securities 5,776 3,501 2,275 Commercial paper 1,090 — 1,090 Corporate bonds and medium-term notes 11,879 — 11,879 Municipal bonds 3,136 — 3,136 Total recurring fair value measurements $ 31,172 $ 12,792 $ 18,380 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jul. 02, 2016 | |
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 2, 2016 and January 2, 2016: Notional Amounts Derivative Assets Derivative Liabilities Derivative Instrument July 2, 2016 January 2, 2016 July 2, 2016 January 2, 2016 July 2, 2016 January 2, 2016 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 $ 910 $ 924 (a ) $ — (a ) $ 1 (b ) $ 6 (b ) $ 4 Total Hedges $ 910 $ 924 $ — $ 1 $ 6 $ 4 (a) Prepaid expenses and other current assets (b) Other accrued liabilities |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jul. 02, 2016 | |
Stock Repurchases | The following table summarizes Intevac’s stock repurchases: Three Months Ended Six Months Ended July 2, 2016 July 4, 2015 July 2, 2016 July 4, 2015 (In thousands, except per share amounts) Shares of common stock repurchased — 1,128 — 1,571 Cost of stock repurchased $ — $ 6,293 $ — $ 9,280 Average price paid per share $ — $ 5.55 $ — $ 5.88 |
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 2, 2016 and July 4, 2015, are as follows. Three Months Ended Six Months Ended July 2, 2016 Foreign Unrealized Total Foreign Unrealized Total (In thousands) Beginning balance $ 519 $ 4 $ 523 $ 452 $ (40 ) $ 412 Other comprehensive income (loss) before reclassification (45 ) 13 (32 ) 22 57 79 Amounts reclassified from other comprehensive income — — — — — — Net current-period other comprehensive income (loss) (45 ) 13 (32 ) 22 57 79 Ending balance $ 474 $ 17 $ 491 $ 474 $ 17 $ 491 Three Months Ended Six Months Ended July 4, 2015 Foreign Unrealized Total Foreign Unrealized Total (In thousands) Beginning balance $ 620 $ 28 $ 648 $ 620 $ (1 ) $ 619 Other comprehensive income (loss) before reclassification (35 ) (4 ) (39 ) (35 ) 25 (10 ) Amounts reclassified from other comprehensive income — — — — — — Net current-period other comprehensive income (loss) (35 ) (4 ) (39 ) (35 ) 25 (10 ) Ending balance $ 585 $ 24 $ 609 $ 585 $ 24 $ 609 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 6 Months Ended |
Jul. 02, 2016 | |
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 2, 2016 July 4, 2015 July 2, 2016 July 4, 2015 (In thousands, except per share amounts) Net income (loss) $ (3,490 ) $ 12 $ (9,795 ) $ (2,881 ) Weighted-average shares – basic 20,691 22,630 20,621 22,929 Effect of dilutive potential common shares — 282 — — Weighted-average shares – diluted 20,691 22,912 20,621 22,929 Net loss per share – basic and diluted $ (0.17 ) $ — $ (0.48 ) $ (0.13 ) |
Antidilutive Securities Excluded from Computation of Diluted Net Income (Loss) Per Share | The following potentially dilutive securities were excluded (as common stock equivalents) from the computation of diluted net income (loss) per share for the periods presented as their effect would have been antidilutive: Three Months Ended Six Months Ended July 2, 2016 July 4, 2015 July 2, 2016 July 4, 2015 (In thousands) Stock options to purchase common stock 2,764 2,309 2,764 2,646 RSUs 968 43 968 552 Employee stock purchase plan 180 — 180 162 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jul. 02, 2016 | |
Information for Each Reportable Segment | Information for each reportable segment for the three and six months ended July 2, 2016 and July 4, 2015 is as follows: Net Revenues Three Months Ended Six Months Ended July 2, 2016 July 4, 2015 July 2, July 4, (In thousands) Thin-film Equipment $ 6,088 $ 11,494 $ 11,668 $ 22,122 Photonics 8,830 8,964 16,914 18,221 Total segment net revenues $ 14,918 $ 20,458 $ 28,582 $ 40,343 Operating Income (Loss) Three Months Ended Six Months Ended July 2, 2016 July 4, 2015 July 2, July 4, 2015 (In thousands) Thin-film Equipment $ (3,674 ) $ 6 $ (9,119 ) $ (3,291 ) Photonics 1,512 1,275 1,919 2,752 Total income (loss) from segment operations (2,162 ) 1,281 (7,200 ) (539 ) Unallocated costs (1,645 ) (998 ) (2,924 ) (2,118 ) Income (loss) from operations (3,807 ) 283 (10,124 ) (2,657 ) Interest income and other income (expense), net 87 (13 ) 125 66 Income (loss) before income taxes $ (3,720 ) $ 270 $ (9,999 ) $ (2,591 ) |
Assets for Each Reportable Segment | Total assets for each reportable segment as of July 2, 2016 and January 2, 2016 are as follows: Assets July 2, January 2, (In thousands) Thin-film Equipment $ 36,278 $ 29,528 Photonics 15,479 16,029 Total segment assets 51,757 45,557 Cash, cash equivalents and investments 40,614 46,627 Restricted cash 1,780 1,780 Deferred income taxes 3 12 Other current assets 1,147 1,052 Common property, plant and equipment 2,447 1,218 Other assets 919 1,435 Consolidated total assets $ 98,667 $ 97,681 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 6 Months Ended |
Jul. 02, 2016 | |
Changes in Restructuring Reserves | The changes in restructuring reserves associated with the Plan for the six months ended July 4, 2015 are as follows: July 4, 2015 Severance and (In thousands) Beginning balance $ — Provision for restructuring reserves 148 Cash payments made (148 ) Ending balance $ — |
Inventories Stated at Lower of
Inventories Stated at Lower of Average Cost or Market (Detail) - USD ($) $ in Thousands | Jul. 02, 2016 | Jan. 02, 2016 |
Inventory [Line Items] | ||
Raw materials | $ 10,718 | $ 11,081 |
Work-in-progress | 9,706 | 4,365 |
Finished goods | 2,063 | 3,314 |
Inventories | $ 22,487 | $ 18,760 |
Equity-Based Compensation - Add
Equity-Based Compensation - Additional information (Detail) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Feb. 29, 2016Employee$ / sharesshares | Feb. 28, 2015Employee$ / sharesshares | Jul. 02, 2016USD ($)shares | Jul. 04, 2015USD ($) | Jul. 02, 2016USD ($)shares | Jul. 04, 2015USD ($) | Apr. 04, 2015shares | |
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 | 187,214 | ||||||
RSU conversion ratio | 100.00% | ||||||
Annual incentive plan stock awards granted | 394,750 | ||||||
Share awards from performance based-awards eligible for time based vesting | 2,604,501 | 2,604,501 | |||||
Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award, vesting period | 4 years | ||||||
Number of share awards granted | 754,652 | ||||||
Annual incentive plan equity-based compensation expense | $ | $ 129,000 | $ 123,000 | $ 243,000 | $ 72,000 | |||
Number of participants in restricted stock grants awarded | Employee | 34 | 29 | |||||
Annual incentive plan stock awards granted | 266,000 | 133,000 | |||||
Weighted-average fair value of grants per share | $ / shares | $ 4.40 | $ 6.85 | |||||
Performance Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of share awards granted | 125,000 | ||||||
Derived service period | 2 years 9 months 18 days | ||||||
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 | ||||||
Performance Shares | Share-based Compensation Award, Tranche Two | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share awards from performance based-awards eligible for time based vesting | 4,920 | 4,920 |
Effect of Recording Equity-Base
Effect of Recording Equity-Based Compensation (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2016 | Jul. 04, 2015 | Jul. 02, 2016 | Jul. 04, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-based compensation | $ 880 | $ 800 | $ 1,991 | $ 1,663 |
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-based compensation | 209 | 125 | 485 | 442 |
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-based compensation | 480 | 395 | 1,114 | 735 |
Employee stock purchase plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-based compensation | $ 191 | $ 280 | $ 392 | $ 486 |
Option Activity and Changes (De
Option Activity and Changes (Detail) | 6 Months Ended |
Jul. 02, 2016$ / sharesshares | |
Shares | |
Options outstanding at January 2, 2016 | shares | 2,433,647 |
Options granted | shares | 394,750 |
Options cancelled and forfeited | shares | (63,799) |
Options exercised | shares | (975) |
Options outstanding at July 2, 2016 | shares | 2,763,623 |
Vested and expected to vest at July 2, 2016 | shares | 2,604,501 |
Options exercisable at July 2, 2016 | shares | 1,739,195 |
Weighted Average Exercise Price | |
Options outstanding at January 2, 2016 | $ / shares | $ 7.52 |
Options granted | $ / shares | 4.79 |
Options cancelled and forfeited | $ / shares | 12.89 |
Options exercised | $ / shares | 4.58 |
Options outstanding at July 2, 2016 | $ / shares | 7.01 |
Vested and expected to vest at July 2, 2016 | $ / shares | 7.11 |
Options exercisable at July 2, 2016 | $ / shares | $ 7.82 |
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. 02, 2016 | Jul. 04, 2015 | Jul. 02, 2016 | Jul. 04, 2015 | |
Stock Options | ||||
Weighted-average assumptions | ||||
Weighted-average fair value of grants per share | $ 1.75 | $ 2.05 | $ 1.74 | $ 2.07 |
Expected volatility | 44.14% | 46.13% | 44.11% | 46.26% |
Risk free interest rate | 0.94% | 1.44% | 0.94% | 1.43% |
Expected term of options (in years) | 4 years 3 months 18 days | 4 years | 4 years 3 months 18 days | 4 years |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Stock Purchase Rights | ||||
Weighted-average assumptions | ||||
Weighted-average fair value of grants per share | $ 1.54 | $ 2.26 | ||
Expected volatility | 39.33% | 44.05% | ||
Risk free interest rate | 0.76% | 0.39% | ||
Expected term of options (in years) | 1 year 11 months 5 days | 1 year 2 months 19 days | ||
Dividend yield | 0.00% | 0.00% |
Summary of Restricted Stock Uni
Summary of Restricted Stock Units Activity (Detail) - Restricted Stock Units (RSUs) | 6 Months Ended |
Jul. 02, 2016$ / sharesshares | |
Shares | |
Non-vested RSUs at January 2, 2016 | shares | 553,584 |
Granted | shares | 754,652 |
Vested | shares | (257,007) |
Cancelled and forfeited | shares | (83,079) |
Non-vested RSUs at July 2, 2016 | shares | 968,150 |
Weighted Average Grant Date Fair Value | |
Non-vested RSUs at January 2, 2016 | $ / shares | $ 6.16 |
Granted | $ / shares | 4.17 |
Vested | $ / shares | 6.49 |
Cancelled and forfeited | $ / shares | 4.70 |
Non-vested RSUs at July 2, 2016 | $ / shares | $ 4.64 |
Weighted Average Fair Value of
Weighted Average Fair Value of Market Condition Based RSUs (Detail) - Restricted Stock | 6 Months Ended |
Jul. 02, 2016$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted-average fair value of grants per share | $ 2.46 |
Expected volatility | 47.65% |
Risk free interest rate | 1.35% |
Expected term (in years) | 4 years 9 months 15 days |
Dividend yield | 0.00% |
Details of Finite-lived Intangi
Details of Finite-lived Intangible Assets by Segment (Detail) - USD ($) $ in Thousands | Jul. 02, 2016 | Jan. 02, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived, Gross Carrying Amount | $ 8,387 | |
Accumulated Amortization | (5,702) | $ (5,275) |
Finite Lived, Net Carrying Amount | 2,685 | $ 3,112 |
Thin-film Equipment Segment | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived, Gross Carrying Amount | 7,172 | |
Accumulated Amortization | (4,757) | |
Finite Lived, Net Carrying Amount | 2,415 | |
Photonics | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived, Gross Carrying Amount | 1,215 | |
Accumulated Amortization | (945) | |
Finite Lived, Net Carrying Amount | $ 270 |
Purchased Intangible Assets - A
Purchased Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended |
Jul. 02, 2016 | Jul. 02, 2016 | |
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. 02, 2016 | Jan. 02, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
2,016 | $ 427 | |
2,017 | 754 | |
2,018 | 615 | |
2,019 | 615 | |
2,020 | 274 | |
Finite Lived, Net Carrying Amount | $ 2,685 | $ 3,112 |
Acquisition-Related Contingen44
Acquisition-Related Contingent Consideration - Additional Information (Detail) $ in Millions | Nov. 19, 2010USD ($) |
Solar Implant Technologies | Revenue Earnout | |
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. 02, 2016 | Jul. 04, 2015 | Jul. 02, 2016 | Jul. 04, 2015 | |
Business Acquisition, Contingent Consideration [Line Items] | ||||
Opening balance | $ 906 | $ 1,108 | $ 890 | $ 1,134 |
Changes in fair value | (158) | (174) | (142) | (200) |
Closing balance | $ 748 | $ 934 | $ 748 | $ 934 |
Balance Sheet Classification of
Balance Sheet Classification of Contingent Consideration Liability (Detail) - USD ($) $ in Thousands | Jul. 02, 2016 | Jan. 02, 2016 |
Business Combination, Transactions [Line Items] | ||
Other accrued liabilities | $ 748 | $ 890 |
Other accrued liabilities | ||
Business Combination, Transactions [Line Items] | ||
Other accrued liabilities | 106 | 179 |
Other long-term liabilities | ||
Business Combination, Transactions [Line Items] | ||
Other accrued liabilities | $ 642 | $ 711 |
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. 02, 2016 | Jan. 02, 2016 | |
Business Acquisition, Contingent Consideration [Line Items] | ||
Fair Value | $ 748 | $ 890 |
Fair Value, Inputs, Level 3 | Revenue Earnout | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Valuation technique | Discounted cash flow | |
Fair Value | $ 748 | |
Fair Value, Inputs, Level 3 | Revenue Earnout | Weighted Average | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Weighted average cost of capital | 13.50% | |
Probability weighting of achieving revenue forecasts | 30.30% | |
Fair Value, Inputs, Level 3 | Revenue Earnout | Minimum | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Probability weighting of achieving revenue forecasts | 10.00% | |
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. 02, 2016 | |
Warranties [Line Items] | |
Minimum product warranty range | 12 months |
Maximum product warranty range | 24 months |
Warranty Provision Account (Det
Warranty Provision Account (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2016 | Jul. 04, 2015 | Jul. 02, 2016 | Jul. 04, 2015 | |
Accrued Warranty [Line Items] | ||||
Opening balance | $ 776 | $ 1,352 | $ 982 | $ 1,186 |
Expenditures incurred under warranties | (106) | (91) | (303) | (222) |
Accruals for product warranties issued during the reporting period | 61 | 203 | 174 | 600 |
Adjustments to previously existing warranty accruals | (139) | (186) | (261) | (286) |
Closing balance | $ 592 | $ 1,278 | $ 592 | $ 1,278 |
Balance Sheet Classification 50
Balance Sheet Classification of Warranty Provision Account (Detail) - USD ($) $ in Thousands | Jul. 02, 2016 | Apr. 02, 2016 | Jan. 02, 2016 | Jul. 04, 2015 | Apr. 04, 2015 | Jan. 03, 2015 |
Product Warranty [Line Items] | ||||||
Other accrued liabilities | $ 543 | $ 835 | ||||
Other long-term liabilities | 49 | 147 | ||||
Total warranty provision | $ 592 | $ 776 | $ 982 | $ 1,278 | $ 1,352 | $ 1,186 |
Guarantees - Additional Informa
Guarantees - Additional Information (Detail) $ in Millions | Jul. 02, 2016USD ($) |
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. 02, 2016 | Jan. 02, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 40,597 | $ 46,667 |
Unrealized Holdings Gains | 20 | |
Unrealized Holdings Losses | 3 | 40 |
Fair Value | 40,614 | 46,627 |
Cash and Cash Equivalents | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 18,733 | 13,746 |
Fair Value | 18,733 | 13,746 |
Short-term Investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 16,650 | 23,215 |
Unrealized Holdings Gains | 8 | |
Unrealized Holdings Losses | 3 | 7 |
Fair Value | 16,655 | 23,208 |
Short-term Investments | Corporate bonds and medium-term notes | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 6,651 | 9,978 |
Unrealized Holdings Gains | 3 | |
Unrealized Holdings Losses | 1 | 7 |
Fair Value | 6,653 | 9,971 |
Short-term Investments | Municipal bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 3,135 | 4,238 |
Unrealized Holdings Gains | 1 | |
Fair Value | 3,136 | 4,238 |
Short-term Investments | U.S. treasury and agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 5,773 | 8,999 |
Unrealized Holdings Gains | 4 | |
Unrealized Holdings Losses | 1 | |
Fair Value | 5,776 | 8,999 |
Other Long-term Investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 5,214 | 9,706 |
Unrealized Holdings Gains | 12 | |
Unrealized Holdings Losses | 33 | |
Fair Value | 5,226 | 9,673 |
Other Long-term Investments | Corporate bonds and medium-term notes | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 5,214 | 6,212 |
Unrealized Holdings Gains | 12 | |
Unrealized Holdings Losses | 23 | |
Fair Value | 5,226 | 6,189 |
Other Long-term Investments | U.S. treasury and agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 3,494 | |
Unrealized Holdings Losses | 10 | |
Fair Value | 3,484 | |
Cash | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 9,442 | 6,208 |
Fair Value | 9,442 | 6,208 |
Money market funds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 9,291 | 7,538 |
Fair Value | 9,291 | $ 7,538 |
Commercial Paper | Short-term Investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,091 | |
Unrealized Holdings Losses | 1 | |
Fair Value | $ 1,090 |
Contractual Maturities of Avail
Contractual Maturities of Available-For-Sale Securities (Detail) $ in Thousands | Jul. 02, 2016USD ($) |
Amortized Cost | |
Amortized Cost, Due in one year or less | $ 25,941 |
Amortized Cost, Due after one through two years | 5,214 |
Amortized Cost | 31,155 |
Fair Value | |
Fair Value, Due in one year or less | 25,946 |
Fair Value, Due after one through two years | 5,226 |
Fair Value | $ 31,172 |
Fair Market Value of Investment
Fair Market Value of Investments with Unrealized Losses Not Deemed to be Other-Than Temporarily Impaired (Detail) $ in Thousands | Jul. 02, 2016USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Unrealized Loss Position, Less than 12 Months, Fair Value | $ 5,575 |
Unrealized Loss Position, Less than 12 Months, Gross Unrealized Losses | 3 |
Unrealized Loss Position, Greater than 12 Months, Fair Value | 0 |
Unrealized Loss Position, Greater than 12 Months, Gross Unrealized Losses | 0 |
Corporate bonds and medium-term notes | |
Schedule of Available-for-sale Securities [Line Items] | |
Unrealized Loss Position, Less than 12 Months, Fair Value | 3,214 |
Unrealized Loss Position, Less than 12 Months, Gross Unrealized Losses | 1 |
Unrealized Loss Position, Greater than 12 Months, Fair Value | 0 |
Unrealized Loss Position, Greater than 12 Months, Gross Unrealized Losses | 0 |
U.S. treasury and agency securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Unrealized Loss Position, Less than 12 Months, Fair Value | 1,271 |
Unrealized Loss Position, Less than 12 Months, Gross Unrealized Losses | 1 |
Unrealized Loss Position, Greater than 12 Months, Fair Value | 0 |
Unrealized Loss Position, Greater than 12 Months, Gross Unrealized Losses | 0 |
Commercial Paper | |
Schedule of Available-for-sale Securities [Line Items] | |
Unrealized Loss Position, Less than 12 Months, Fair Value | 1,090 |
Unrealized Loss Position, Less than 12 Months, Gross Unrealized Losses | 1 |
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. 02, 2016USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | $ 31,172 |
Fair Value, Measurements, Recurring | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 31,172 |
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 | 9,291 |
Fair Value, Measurements, Recurring | Commercial Paper | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 1,090 |
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 | 5,776 |
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 | 11,879 |
Fair Value, Measurements, Recurring | Municipal bonds | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 3,136 |
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 | 12,792 |
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 | 9,291 |
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 | 3,501 |
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 | 18,380 |
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 | 1,090 |
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 | 2,275 |
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 | 11,879 |
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 | $ 3,136 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) | 6 Months Ended |
Jul. 02, 2016 | |
Derivative [Line Items] | |
Maturity of foreign currency derivative | 30 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. 02, 2016 | Jan. 02, 2016 | |
Derivatives, Fair Value [Line Items] | |||
Notional Amounts | $ 910 | $ 924 | |
Derivative Assets | [1] | 1 | |
Derivative Liabilities | [2] | 6 | 4 |
Foreign currency forward contracts | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amounts | 910 | 924 | |
Derivative Assets | [1] | 1 | |
Derivative Liabilities | [2] | $ 6 | $ 4 |
[1] | Prepaid expenses and other current assets | ||
[2] | Other accrued liabilities |
Equity - Additional Information
Equity - Additional Information (Detail) - USD ($) | Jul. 02, 2016 | Nov. 21, 2013 |
Equity, Class of Treasury Stock [Line Items] | ||
Stock repurchase authorized amount | $ 30,000,000 | |
Stock repurchase remained available for future stock repurchase | $ 1,500,000 |
Stock Repurchases (Detail)
Stock Repurchases (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended |
Jul. 04, 2015 | Jul. 04, 2015 | |
Equity, Class of Treasury Stock [Line Items] | ||
Shares of common stock repurchased | 1,128 | 1,571 |
Cost of stock repurchased | $ 6,293 | $ 9,280 |
Average price paid per share | $ 5.55 | $ 5.88 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income by Component (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2016 | Jul. 04, 2015 | Jul. 02, 2016 | Jul. 04, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ 75,997 | |||
Other comprehensive income (loss) before reclassification | $ (32) | $ (39) | 79 | $ (10) |
Amounts reclassified from other comprehensive income | 0 | 0 | 0 | 0 |
Net current-period other comprehensive income (loss) | (32) | (39) | 79 | (10) |
Ending balance | 68,827 | 68,827 | ||
Foreign currency | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 519 | 620 | 452 | 620 |
Other comprehensive income (loss) before reclassification | (45) | (35) | 22 | (35) |
Amounts reclassified from other comprehensive income | 0 | 0 | 0 | 0 |
Net current-period other comprehensive income (loss) | (45) | (35) | 22 | (35) |
Ending balance | 474 | 585 | 474 | 585 |
Unrealized holding gains on available-for-sale investments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 4 | 28 | (40) | (1) |
Other comprehensive income (loss) before reclassification | 13 | (4) | 57 | 25 |
Amounts reclassified from other comprehensive income | 0 | 0 | 0 | 0 |
Net current-period other comprehensive income (loss) | 13 | (4) | 57 | 25 |
Ending balance | 17 | 24 | 17 | 24 |
Accumulated other comprehensive income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 523 | 648 | 412 | 619 |
Ending balance | $ 491 | $ 609 | $ 491 | $ 609 |
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. 02, 2016 | Jul. 04, 2015 | Jul. 02, 2016 | Jul. 04, 2015 | |
Schedule Of Computation Of Basic And Diluted Earnings Per Common Share [Line Items] | ||||
Net income (loss) | $ (3,490) | $ 12 | $ (9,795) | $ (2,881) |
Weighted-average shares - basic | 20,691 | 22,630 | 20,621 | 22,929 |
Effect of dilutive potential common shares | 282 | |||
Weighted-average shares - diluted | 20,691 | 22,912 | 20,621 | 22,929 |
Net loss per share - basic and diluted | $ (0.17) | $ (0.48) | $ (0.13) |
Antidilutive Securities Exclude
Antidilutive Securities Excluded from Computation of Diluted Net Income (Loss) Per Share (Detail) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2016 | Jul. 04, 2015 | Jul. 02, 2016 | Jul. 04, 2015 | |
Stock Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of diluted net income (loss) per share | 2,764 | 2,309 | 2,764 | 2,646 |
Restricted Stock Units (RSUs) | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of diluted net income (loss) per share | 968 | 43 | 968 | 552 |
Employee stock purchase plan | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of diluted net income (loss) per share | 180 | 180 | 162 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 6 Months Ended |
Jul. 02, 2016Segment | |
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. 02, 2016 | Jul. 04, 2015 | Jul. 02, 2016 | Jul. 04, 2015 | |
Segment Reporting Information [Line Items] | ||||
Total segment net revenues | $ 14,918 | $ 20,458 | $ 28,582 | $ 40,343 |
Operating income (loss) | (3,807) | 283 | (10,124) | (2,657) |
Interest income and other income (expense), net | 87 | (13) | 125 | 66 |
Income (loss) before income taxes | (3,720) | 270 | (9,999) | (2,591) |
Thin-film Equipment Segment | ||||
Segment Reporting Information [Line Items] | ||||
Total segment net revenues | 6,088 | 11,494 | 11,668 | 22,122 |
Photonics | ||||
Segment Reporting Information [Line Items] | ||||
Total segment net revenues | 8,830 | 8,964 | 16,914 | 18,221 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | (2,162) | 1,281 | (7,200) | (539) |
Operating Segments | Thin-film Equipment Segment | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | (3,674) | 6 | (9,119) | (3,291) |
Operating Segments | Photonics | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | 1,512 | 1,275 | 1,919 | 2,752 |
Unallocated Amount to Segment | ||||
Segment Reporting Information [Line Items] | ||||
Unallocated costs | $ (1,645) | $ (998) | $ (2,924) | $ (2,118) |
Assets for Each Reportable Segm
Assets for Each Reportable Segment (Detail) - USD ($) $ in Thousands | Jul. 02, 2016 | Jan. 02, 2016 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Cash, cash equivalents and investments | $ 40,614 | $ 46,627 |
Restricted cash | 1,780 | 1,780 |
Deferred income taxes | 3 | 12 |
Other current assets | 1,147 | 1,052 |
Common property, plant and equipment | 2,447 | 1,218 |
Other assets | 919 | 1,435 |
Consolidated total assets | 98,667 | 97,681 |
Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated total assets | 51,757 | 45,557 |
Operating Segments | Thin-film Equipment Segment | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated total assets | 36,278 | 29,528 |
Operating Segments | Photonics | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated total assets | $ 15,479 | $ 16,029 |
Restructuring Charges - Additio
Restructuring Charges - Additional Information (Detail) $ in Millions | 6 Months Ended |
Jul. 02, 2016USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Percentage of reduction of global workforce | 3.00% |
Reduction in salary, wages and other employee-related expenses due to implementation of plan | $ 1.4 |
Changes in Restructuring Reserv
Changes in Restructuring Reserves (Detail) $ in Thousands | 6 Months Ended |
Jul. 04, 2015USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Beginning balance | $ 0 |
Provision for restructuring reserves | 148 |
Cash payments made | (148) |
Ending balance | $ 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jul. 02, 2016 | Jul. 04, 2015 | Jul. 02, 2016 | Jul. 04, 2015 | Jan. 02, 2016 | Jan. 03, 2015 | |
Income Taxes [Line Items] | |||||||
Provision for (benefit from) income taxes | $ (230,000) | $ 258,000 | $ (204,000) | $ 290,000 | |||
Income tax charge (benefit) for audit considerations in foreign jurisdictions | (281,000) | $ 262,000 | |||||
Inland Revenue, Singapore (IRAS) | |||||||
Income Taxes [Line Items] | |||||||
Deposit for contested taxes and related interest | $ 919,000 | $ 919,000 | $ 1,400,000 | ||||
Partial refund received for contested taxes | $ (517,000) | ||||||
Derecognition of portion of tax accrual | (281,000) | ||||||
Reduction in income tax provision | $ (281,000) | ||||||
Inland Revenue, Singapore (IRAS) | Tax Year 2009 | |||||||
Income Taxes [Line Items] | |||||||
Deposit for contested taxes and related interest | $ 318,000 | ||||||
Inland Revenue, Singapore (IRAS) | Tax Year 2010 | |||||||
Income Taxes [Line Items] | |||||||
Deposit for contested taxes and related interest | $ 1,100,000 |