Intevac (IVAC) 10-Q 2 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Oct. 01, 2016	Nov. 02, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Oct. 1, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
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		20,930,298

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Oct. 01, 2016	Jan. 02, 2016
Current assets:
Cash and cash equivalents	$ 20,823	$ 13,746
Short-term investments	15,822	23,208
Trade and other accounts receivable, net of allowances of $0 at both October 1, 2016 and at January 2, 2016	19,014	12,310
Inventories	26,914	18,760
Prepaid expenses and other current assets	1,968	1,712
Total current assets	84,541	69,736
Property, plant and equipment, net	11,348	11,921
Long-term investments	4,257	9,673
Restricted cash	1,958	1,780
Intangible assets, net of amortization of $5,915 at October 1, 2016 and $5,275 at January 2, 2016	2,472	3,112
Deferred income taxes and other long-term assets	952	1,459
Total assets	105,528	97,681
Current liabilities:
Accounts payable	5,814	5,950
Accrued payroll and related liabilities	3,750	4,066
Other accrued liabilities	8,536	5,632
Customer advances	14,247	3,625
Total current liabilities	32,347	19,273
Other long-term liabilities	3,319	2,411
Stockholders' equity:
Common stock, $0.001 par value	21	20
Additional paid-in capital	170,608	166,514
Treasury stock, 4,845 shares at October 1, 2016 and January 2, 2016	(28,489)	(28,489)
Accumulated other comprehensive income	458	412
Accumulated deficit	(72,736)	(62,460)
Total stockholders' equity	69,862	75,997
Total liabilities and stockholders' equity	$ 105,528	$ 97,681

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Oct. 01, 2016	Jan. 02, 2016
Net of allowances of trade, note and other accounts receivable	$ 0	$ 0
Net of amortization of intangible assets	$ 5,915	$ 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		9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015	Oct. 01, 2016	Oct. 03, 2015
Net revenues:
Systems and components	$ 20,961	$ 16,320	$ 47,326	$ 53,049
Technology development	1,598	2,098	3,816	5,713
Total net revenues	22,559	18,418	51,142	58,762
Cost of net revenues:
Systems and components	13,025	12,118	29,490	35,191
Technology development	1,019	1,388	3,155	3,931
Total cost of net revenues	14,044	13,506	32,645	39,122
Gross profit	8,515	4,912	18,497	19,640
Operating expenses:
Research and development	4,067	3,956	14,220	11,511
Selling, general and administrative	4,772	4,736	14,724	14,565
Total operating expenses	8,839	8,692	28,944	26,076
Loss from operations	(324)	(3,780)	(10,447)	(6,436)
Interest income and other income (expense), net	60	23	184	88
Loss before income taxes	(264)	(3,757)	(10,263)	(6,348)
Provision for income taxes	217	2	13	292
Net loss	$ (481)	$ (3,759)	$ (10,276)	$ (6,640)
Net loss per share:
Basic and diluted	$ (0.02)	$ (0.17)	$ (0.50)	$ (0.29)
Weighted average common shares outstanding:
Basic and diluted	20,869	22,004	20,704	22,621

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015	Oct. 01, 2016	Oct. 03, 2015
Net loss	$ (481)	$ (3,759)	$ (10,276)	$ (6,640)
Other comprehensive income (loss), before tax
Change in unrealized net gain on available-for-sale investments	(16)	(1)	41	24
Foreign currency translation gains (losses)	(17)	(115)	5	(150)
Other comprehensive income (loss), before tax	(33)	(116)	46	(126)
Income tax (expense) benefit related to items in other comprehensive income (loss)	0	0	0	0
Other comprehensive income (loss), net of tax	(33)	(116)	46	(126)
Comprehensive loss	$ (514)	$ (3,875)	$ (10,230)	$ (6,766)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015
Operating activities
Net loss	$ (10,276)	$ (6,640)
Adjustments to reconcile net loss to net cash and cash equivalents used in operating activities:
Depreciation and amortization	3,744	3,453
Net amortization of investment premiums and discounts	96	265
Equity-based compensation	2,896	2,649
Change in the fair value of acquisition-related contingent consideration	(90)	(350)
Deferred income taxes	9	(28)
(Gain) loss on disposal of equipment	(8)	270
Changes in operating assets and liabilities	577	65
Total adjustments	7,224	6,324
Net cash and cash equivalents used in operating activities	(3,052)	(316)
Investing activities
Purchases of investments	(10,433)	(17,434)
Proceeds from sales and maturities of investments	22,180	25,950
Proceeds from sale of equipment	8	11
Purchases of leasehold improvements and equipment	(2,535)	(2,200)
Increase in restricted cash	(178)
Net cash and cash equivalents provided by investing activities	9,042	6,327
Financing activities
Common stock repurchases		(10,879)
Net proceeds from issuance of common stock	1,482	1,691
Taxes paid related to net share settlement	(403)	(118)
Net cash and cash equivalents used in financing activities	1,079	(9,306)
Effect of exchange rate changes on cash	8	(153)
Net increase (decrease) in cash and cash equivalents	7,077	(3,448)
Cash and cash equivalents at beginning of period	13,746	21,482
Cash and cash equivalents at end of period	$ 20,823	$ 18,034

Basis of Presentation

Basis of Presentation	9 Months Ended
	Oct. 01, 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 nine months ended October 1, 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	9 Months Ended
	Oct. 01, 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). In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments

Inventories

Inventories	9 Months Ended
	Oct. 01, 2016
Inventories	3. Inventories Inventories are stated at the lower of average cost or market and consist of the following: October 1, January 2, 2016 2016 (In thousands) Raw materials $ 11,506 $ 11,081 Work-in-progress 11,300 4,365 Finished goods 4,108 3,314 $ 26,914 $ 18,760 Finished goods inventory consists primarily of completed systems that are undergoing installation and acceptance testing.

Equity-Based Compensation

Equity-Based Compensation	9 Months Ended
	Oct. 01, 2016
Equity-Based Compensation	4. Equity-Based Compensation At October 1, 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 nine months ended October 1, 2016 and October 3, 2015 was as follows: Three Months Ended Nine Months Ended October 1, October 3, October 1, October 3, (In thousands) Equity-based compensation by type of award: Stock options $ 211 $ 265 $ 696 $ 707 RSUs 543 482 1,657 1,216 ESPP awards 151 240 543 726 Total equity-based compensation $ 905 $ 987 $ 2,896 $ 2,649 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 October 1, 2016 and changes during the nine months ended October 1, 2016 were as follows: Shares Weighted Average Options outstanding at January 2, 2016 2,433,647 $ 7.52 Options granted 407,500 $ 4.83 Options cancelled and forfeited (91,084 ) $ 11.40 Options exercised (6,959 ) $ 4.52 Options outstanding at October 1, 2016 2,743,104 $ 7.00 Vested and expected to vest at October 1, 2016 2,607,235 $ 7.08 Options exercisable at October 1, 2016 1,823,905 $ 7.74 Intevac issued 384,000 shares under the ESPP during the nine months ended October 1, 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 Nine Months Ended October 1, October 3, October 1, October 3, Stock Options: Weighted-average fair value of grants per share $ 1.90 $ 1.78 $ 1.75 $ 2.06 Expected volatility 40.53 % 45.87 % 44.00 % 46.25 % Risk free interest rate 0.97 % 1.09 % 0.94 % 1.41 % Expected term of options (in years) 3.96 3.95 4.29 3.99 Dividend yield None None None None Three Months Ended Nine Months Ended October 1, October 3, October 1, October 3, Stock Purchase Rights: Weighted-average fair value of grants per share $ 1.69 $ 1.69 $ 1.55 $ 2.14 Expected volatility 37.51 % 41.22 % 39.22 % 43.45 % Risk free interest rate 0.63 % 0.69 % 0.75 % 0.45 % Expected term of purchase rights (in years) 1.00 1.90 1.87 1.36 Dividend yield None None 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 761,027 $ 4.18 Vested (258,038 ) $ 6.49 Cancelled and forfeited (101,766 ) $ 4.81 Non-vested RSUs at October 1, 2016 954,807 $ 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 three and/or 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 nine months ended October 1, 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: Nine Months Ended October 1, 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, 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 October 1, 2016 and October 3, 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 $120,000 and $364,000, respectively, for the three and nine months ended October 1, 2016 and $133,000 and $205,000, respectively, for the three and nine months ended October 3, 2015.

Purchased Intangible Assets

Purchased Intangible Assets	9 Months Ended
	Oct. 01, 2016
Purchased Intangible Assets	5. Purchased Intangible Assets Details of finite-lived intangible assets by segment as of October 1, 2016 are as follows. October 1, 2016 Gross Accumulated Net (In thousands) Equipment $ 7,172 $ (4,944 ) $ 2,228 Photonics 1,215 (971 ) 244 $ 8,387 $ (5,915 ) $ 2,472 Total amortization expense of finite-lived intangibles for the three and nine months ended October 1, 2016 was $213,000 and $640,000, respectively. As of October 1, 2016, future amortization expense is expected to be as follows. (In thousands) 2016 $ 213 2017 754 2018 615 2019 615 2020 275 $ 2,472

Acquisition-Related Contingent

Acquisition-Related Contingent Consideration	9 Months Ended
	Oct. 01, 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 October 1, 2016 based on probability-based forecasted revenues reflecting Intevac’s own assumptions concerning future revenue from such products. As of October 1, 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 loss from operations within the 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 nine month periods ended October 1, 2016 and October 3, 2015: Three Months Ended Nine Months Ended October 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015 (In thousands) Opening balance $ 748 $ 934 $ 890 $ 1,134 Changes in fair value 52 (150 ) (90 ) (350 ) Closing balance $ 800 $ 784 $ 800 $ 784 The following table displays the balance sheet classification of the contingent consideration liability account at October 1, 2016 and at January 2, 2016: October 1, January 2, 2016 2016 (In thousands) Other accrued liabilities $ 108 $ 179 Other long-term liabilities 692 711 Total acquisition-related contingent consideration $ 800 $ 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 October 1, 2016. Significant increases or decreases in any of these inputs in isolation would result in a significantly lower or higher fair value measurement. Quantitative Information about Level 3 Fair Value Measurements at October 1, 2016 Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (In thousands, except for percentages) Revenue Earnout $ 800 Discounted cash flow Weighted average cost of capital Probability weighting of achieving 13.5% 10.0% - 80.0% (31.8%)

Warranty

Warranty	9 Months Ended
	Oct. 01, 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 nine months ended October 1, 2016 and October 3, 2015: Three Months Ended Nine Months Ended October 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015 (In thousands) Opening balance $ 592 $ 1,278 $ 982 $ 1,186 Expenditures incurred under warranties (80 ) (77 ) (384 ) (297 ) Accruals for product warranties issued during the reporting period 320 139 494 738 Adjustments to previously existing warranty accruals (110 ) (169 ) (370 ) (456 ) Closing balance $ 722 $ 1,171 $ 722 $ 1,171 The following table displays the balance sheet classification of the warranty provision account at October 1, 2016 and at January 2, 2016: October 1, January 2, 2016 2016 (In thousands) Other accrued liabilities $ 579 $ 835 Other long-term liabilities 143 147 Total warranty provision $ 722 $ 982

Guarantees

Guarantees	9 Months Ended
	Oct. 01, 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 October 1, 2016, we had letters of credit and bank guarantees outstanding totaling $2.0 million, including the standby letter of credit outstanding under the Santa Clara, California facility lease, a banker’s guarantee which guarantees customer advances under a customer contract, and a guarantee on a supplier accounts payable credit card program with our bank. These letters of credit and bank guarantees are collateralized by $2.0 million of restricted cash.

Cash, Cash Equivalents and Inve

Cash, Cash Equivalents and Investments	9 Months Ended
	Oct. 01, 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: October 1, 2016 Amortized Unrealized Unrealized Fair Value (In thousands) Cash and cash equivalents: Cash $ 12,457 $ — $ — $ 12,457 Money market funds 8,366 — — 8,366 Total cash and cash equivalents $ 20,823 $ — $ — $ 20,823 Short-term investments: Commercial paper $ 1,493 $ — $ 1 $ 1,492 Corporate bonds and medium-term notes 6,847 2 3 6,846 Municipal bonds 1,027 — — 1,027 U.S. treasury and agency securities 6,454 3 — 6,457 Total short-term investments $ 15,821 $ 5 $ 4 $ 15,822 Long-term investments: Corporate bonds and medium-term notes $ 3,757 $ 3 $ 2 $ 3,758 Municipal bonds 500 — 1 499 Total long-term investments $ 4,257 $ 3 $ 3 $ 4,257 Total cash, cash equivalents, and investments $ 40,901 $ 8 $ 7 $ 40,902 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 October 1, 2016 are presented in the following table. Amortized Fair Value (In thousands) Due in one year or less $ 24,187 $ 24,188 Due after one through two years 4,257 4,257 $ 28,444 $ 28,445 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 October 1, 2016. October 1, 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 $ 1,092 $ 1 $ — $ — Corporate bonds and medium-term notes 5,717 5 — — Municipal bonds 1,099 1 — — $ 7,908 $ 7 $ — $ — 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 October 1, 2016. Fair Value Measurements at October 1, 2016 Total Level 1 Level 2 (In thousands) Recurring fair value measurements: Available-for-sale securities Money market funds $ 8,366 $ 8,366 $ — U.S. treasury and agency securities 6,457 3,500 2,957 Commercial paper 1,492 — 1,492 Corporate bonds and medium-term notes 10,604 — 10,604 Municipal bonds 1,526 — 1,526 Total recurring fair value measurements $ 28,445 $ 11,866 $ 16,579

Derivative Instruments

Derivative Instruments	9 Months Ended
	Oct. 01, 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 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 and 60 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 October 1, 2016 and January 2, 2016: Notional Amounts Derivative Assets Derivative Liabilities Derivative Instruments October 1, January 2, October 1, January 2, October 1, January 2, 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 $ 1,993 $ 924 (a ) $ — (a ) $ 1 (b ) $ 9 (b ) $ 4 Total Hedges $ 1,993 $ 924 $ — $ 1 $ 9 $ 4 (a) Prepaid expenses and other current assets (b) Other accrued liabilities

Equity

Equity	9 Months Ended
	Oct. 01, 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 October 1, 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 Nine Months Ended October 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015 (In thousands, except per share amounts) Shares of common stock repurchased — 331 — 1,903 Cost of stock repurchased $ — $ 1,670 $ — $ 10,950 Average price paid per share $ — $ 5.01 $ — $ 5.73 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 retained earnings. Accumulated Other Comprehensive Income The changes in accumulated other comprehensive income by component for the three and nine months ended October 1, 2016 and October 3, 2015, are as follows. Three Months Ended Nine Months Ended October 1, 2016 Foreign Unrealized Total Foreign Unrealized Total (In thousands) Beginning balance $ 474 $ 17 $ 491 $ 452 $ (40 ) $ 412 Other comprehensive income (loss) before reclassification (17 ) (16 ) (33 ) 5 41 46 Amounts reclassified from other comprehensive income — — — — — — Net current-period other comprehensive income (loss) (17 ) (16 ) (33 ) 5 41 46 Ending balance $ 457 $ 1 $ 458 $ 457 $ 1 $ 458 Three Months Ended Nine Months Ended October 3, 2015 Foreign Unrealized Total Foreign Unrealized Total (In thousands) Beginning balance $ 585 $ 24 $ 609 $ 620 $ (1 ) $ 619 Other comprehensive income (loss) before reclassification (115 ) (1 ) (116 ) (150 ) 24 (126 ) Amounts reclassified from other comprehensive income — — — — — — Net current-period other comprehensive income (loss) (115 ) (1 ) (116 ) (150 ) 24 (126 ) Ending balance $ 470 $ 23 $ 493 $ 470 $ 23 $ 493

Net Loss Per Share

Net Loss Per Share	9 Months Ended
	Oct. 01, 2016
Net Loss Per Share	12. Net Loss Per Share The following table sets forth the computation of basic and diluted loss per share: Three Months Ended Nine Months Ended October 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015 (In thousands, except per share amounts) Net loss $ (481 ) $ (3,759 ) $ (10,276 ) $ (6,640 ) Weighted-average shares – basic 20,869 22,004 20,704 22,621 Effect of dilutive potential common shares — — — — Weighted-average shares – diluted 20,869 22,004 20,704 22,621 Net loss per share – basic and diluted $ (0.02 ) $ (0.17 ) $ (0.50 ) $ (0.29 ) As the Company is in a net loss position, all of the Company’s equity instruments are considered antidilutive.

Segment Reporting

Segment Reporting	9 Months Ended
	Oct. 01, 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 October 1, 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. Information for each reportable segment for the three and nine months ended October 1, 2016 and October 3, 2015 is as follows: Net Revenues Three Months Ended Nine Months Ended October 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015 (In thousands) Thin-film Equipment $ 14,272 $ 9,192 $ 25,941 $ 31,314 Photonics 8,287 9,226 25,201 27,448 Total segment net revenues $ 22,559 $ 18,418 $ 51,142 $ 58,762 Operating Income (Loss) Three Months Ended Nine Months Ended October 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015 (In thousands) Thin-film Equipment $ (998 ) $ (3,935 ) $ (10,117 ) $ (7,226 ) Photonics 1,737 1,308 3,656 4,060 Total segment operating income (loss) 739 (2,627 ) (6,461 ) (3,166 ) Unallocated costs (1,063 ) (1,153 ) (3,986 ) (3,270 ) Loss from operations (324 ) (3,780 ) (10,447 ) (6,436 ) Interest income and other income (expense), net 60 23 184 88 Loss before income taxes $ (264 ) $ (3,757 ) $ (10,263 ) $ (6,348 ) Total assets for each reportable segment as of October 1, 2016 and January 2, 2016 are as follows: Assets October 1, 2016 January 2, 2016 (In thousands) Thin-film Equipment $ 40,998 $ 29,528 Photonics 17,553 16,029 Total segment assets 58,551 45,557 Cash, cash equivalents and investments 40,902 46,627 Restricted cash 1,958 1,780 Deferred income taxes 3 12 Other current assets 2,090 1,052 Common property, plant and equipment 1,099 1,218 Other assets 925 1,435 Consolidated total assets $ 105,528 $ 97,681

Restructuring Charges

Restructuring Charges	9 Months Ended
	Oct. 01, 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 reduced expenses and reduced 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 nine months ended October 3, 2015 are as follows: October 3, Severance and (In thousands) Beginning balance $ — Provision for restructuring reserves 148 Cash payments made (148 ) Ending balance $ —

Income Taxes

Income Taxes	9 Months Ended
	Oct. 01, 2016
Income Taxes	15. Income Taxes Intevac recorded income tax provisions of $217,000 and $13,000 for the three and nine months ended October 1, 2016, respectively, and tax provisions of $2,000 and $292,000 for the three and nine months ended October 3, 2015, respectively. Intevac recorded the following discrete items for withholding tax for royalties payable to the United States from Intevac’s Singapore subsidiary: income tax charges of $172,000 and $216,000 in the three and nine months ended October 1, 2016, respectively. Intevac also recorded the following discrete items for audit considerations in foreign jurisdictions: a $281,000 income tax benefit during the nine months ended October 1, 2016 and a $262,000 income tax charge during the nine months ended October 3, 2015. The income tax provisions (benefits) for the three and nine 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 nine month periods ended October 1, 2016 and October 3, 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, in the second quarter of fiscal 2016, 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 October 1, 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	9 Months Ended
	Oct. 01, 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)	9 Months Ended
	Oct. 01, 2016
Summary of Inventories	Inventories are stated at the lower of average cost or market and consist of the following: October 1, January 2, 2016 2016 (In thousands) Raw materials $ 11,506 $ 11,081 Work-in-progress 11,300 4,365 Finished goods 4,108 3,314 $ 26,914 $ 18,760

Equity-Based Compensation (Tabl

Equity-Based Compensation (Tables)	9 Months Ended
	Oct. 01, 2016
Effect of Recording Equity-Based Compensation	The effect of recording equity-based compensation for the three and nine months ended October 1, 2016 and October 3, 2015 was as follows: Three Months Ended Nine Months Ended October 1, October 3, October 1, October 3, (In thousands) Equity-based compensation by type of award: Stock options $ 211 $ 265 $ 696 $ 707 RSUs 543 482 1,657 1,216 ESPP awards 151 240 543 726 Total equity-based compensation $ 905 $ 987 $ 2,896 $ 2,649
Option Activity and Changes	Option activity as of October 1, 2016 and changes during the nine months ended October 1, 2016 were as follows: Shares Weighted Average Options outstanding at January 2, 2016 2,433,647 $ 7.52 Options granted 407,500 $ 4.83 Options cancelled and forfeited (91,084 ) $ 11.40 Options exercised (6,959 ) $ 4.52 Options outstanding at October 1, 2016 2,743,104 $ 7.00 Vested and expected to vest at October 1, 2016 2,607,235 $ 7.08 Options exercisable at October 1, 2016 1,823,905 $ 7.74
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 Nine Months Ended October 1, October 3, October 1, October 3, Stock Options: Weighted-average fair value of grants per share $ 1.90 $ 1.78 $ 1.75 $ 2.06 Expected volatility 40.53 % 45.87 % 44.00 % 46.25 % Risk free interest rate 0.97 % 1.09 % 0.94 % 1.41 % Expected term of options (in years) 3.96 3.95 4.29 3.99 Dividend yield None None None None Three Months Ended Nine Months Ended October 1, October 3, October 1, October 3, Stock Purchase Rights: Weighted-average fair value of grants per share $ 1.69 $ 1.69 $ 1.55 $ 2.14 Expected volatility 37.51 % 41.22 % 39.22 % 43.45 % Risk free interest rate 0.63 % 0.69 % 0.75 % 0.45 % Expected term of purchase rights (in years) 1.00 1.90 1.87 1.36 Dividend yield None None 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 761,027 $ 4.18 Vested (258,038 ) $ 6.49 Cancelled and forfeited (101,766 ) $ 4.81 Non-vested RSUs at October 1, 2016 954,807 $ 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: Nine Months Ended October 1, 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)	9 Months Ended
	Oct. 01, 2016
Details of Finite-lived Intangible Assets by Segment	Details of finite-lived intangible assets by segment as of October 1, 2016 are as follows. October 1, 2016 Gross Accumulated Net (In thousands) Equipment $ 7,172 $ (4,944 ) $ 2,228 Photonics 1,215 (971 ) 244 $ 8,387 $ (5,915 ) $ 2,472
Future Amortization Expense	As of October 1, 2016, future amortization expense is expected to be as follows. (In thousands) 2016 $ 213 2017 754 2018 615 2019 615 2020 275 $ 2,472

Acquisition-Related Contingen26

Acquisition-Related Contingent Consideration (Tables)	9 Months Ended
	Oct. 01, 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 nine month periods ended October 1, 2016 and October 3, 2015: Three Months Ended Nine Months Ended October 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015 (In thousands) Opening balance $ 748 $ 934 $ 890 $ 1,134 Changes in fair value 52 (150 ) (90 ) (350 ) Closing balance $ 800 $ 784 $ 800 $ 784
Balance Sheet Classification of Contingent Consideration Liability	The following table displays the balance sheet classification of the contingent consideration liability account at October 1, 2016 and at January 2, 2016: October 1, January 2, 2016 2016 (In thousands) Other accrued liabilities $ 108 $ 179 Other long-term liabilities 692 711 Total acquisition-related contingent consideration $ 800 $ 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 October 1, 2016. Significant increases or decreases in any of these inputs in isolation would result in a significantly lower or higher fair value measurement. Quantitative Information about Level 3 Fair Value Measurements at October 1, 2016 Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (In thousands, except for percentages) Revenue Earnout $ 800 Discounted cash flow Weighted average cost of capital Probability weighting of achieving 13.5% 10.0% - 80.0% (31.8%)

Warranty (Tables)

Warranty (Tables)	9 Months Ended
	Oct. 01, 2016
Activity in Warranty Provision Account	The following table displays the activity in the warranty provision account for the three and nine months ended October 1, 2016 and October 3, 2015: Three Months Ended Nine Months Ended October 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015 (In thousands) Opening balance $ 592 $ 1,278 $ 982 $ 1,186 Expenditures incurred under warranties (80 ) (77 ) (384 ) (297 ) Accruals for product warranties issued during the reporting period 320 139 494 738 Adjustments to previously existing warranty accruals (110 ) (169 ) (370 ) (456 ) Closing balance $ 722 $ 1,171 $ 722 $ 1,171 The following table displays the balance sheet classification of the warranty provision account at October 1, 2016 and at January 2, 2016: October 1, January 2, 2016 2016 (In thousands) Other accrued liabilities $ 579 $ 835 Other long-term liabilities 143 147 Total warranty provision $ 722 $ 982

Cash, Cash Equivalents and In28

Cash, Cash Equivalents and Investments (Tables)	9 Months Ended
	Oct. 01, 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: October 1, 2016 Amortized Unrealized Unrealized Fair Value (In thousands) Cash and cash equivalents: Cash $ 12,457 $ — $ — $ 12,457 Money market funds 8,366 — — 8,366 Total cash and cash equivalents $ 20,823 $ — $ — $ 20,823 Short-term investments: Commercial paper $ 1,493 $ — $ 1 $ 1,492 Corporate bonds and medium-term notes 6,847 2 3 6,846 Municipal bonds 1,027 — — 1,027 U.S. treasury and agency securities 6,454 3 — 6,457 Total short-term investments $ 15,821 $ 5 $ 4 $ 15,822 Long-term investments: Corporate bonds and medium-term notes $ 3,757 $ 3 $ 2 $ 3,758 Municipal bonds 500 — 1 499 Total long-term investments $ 4,257 $ 3 $ 3 $ 4,257 Total cash, cash equivalents, and investments $ 40,901 $ 8 $ 7 $ 40,902 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 October 1, 2016 are presented in the following table. Amortized Fair Value (In thousands) Due in one year or less $ 24,187 $ 24,188 Due after one through two years 4,257 4,257 $ 28,444 $ 28,445
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 October 1, 2016. October 1, 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 $ 1,092 $ 1 $ — $ — Corporate bonds and medium-term notes 5,717 5 — — Municipal bonds 1,099 1 — — $ 7,908 $ 7 $ — $ —
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 October 1, 2016. Fair Value Measurements at October 1, 2016 Total Level 1 Level 2 (In thousands) Recurring fair value measurements: Available-for-sale securities Money market funds $ 8,366 $ 8,366 $ — U.S. treasury and agency securities 6,457 3,500 2,957 Commercial paper 1,492 — 1,492 Corporate bonds and medium-term notes 10,604 — 10,604 Municipal bonds 1,526 — 1,526 Total recurring fair value measurements $ 28,445 $ 11,866 $ 16,579

Derivative Instruments (Tables)

Derivative Instruments (Tables)	9 Months Ended
	Oct. 01, 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 October 1, 2016 and January 2, 2016: Notional Amounts Derivative Assets Derivative Liabilities Derivative Instruments October 1, January 2, October 1, January 2, October 1, January 2, 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 $ 1,993 $ 924 (a ) $ — (a ) $ 1 (b ) $ 9 (b ) $ 4 Total Hedges $ 1,993 $ 924 $ — $ 1 $ 9 $ 4 (a) Prepaid expenses and other current assets (b) Other accrued liabilities

Equity (Tables)

Equity (Tables)	9 Months Ended
	Oct. 01, 2016
Stock Repurchases	The following table summarizes Intevac’s stock repurchases: Three Months Ended Nine Months Ended October 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015 (In thousands, except per share amounts) Shares of common stock repurchased — 331 — 1,903 Cost of stock repurchased $ — $ 1,670 $ — $ 10,950 Average price paid per share $ — $ 5.01 $ — $ 5.73
Change in Accumulated Other Comprehensive Income by Component	The changes in accumulated other comprehensive income by component for the three and nine months ended October 1, 2016 and October 3, 2015, are as follows. Three Months Ended Nine Months Ended October 1, 2016 Foreign Unrealized Total Foreign Unrealized Total (In thousands) Beginning balance $ 474 $ 17 $ 491 $ 452 $ (40 ) $ 412 Other comprehensive income (loss) before reclassification (17 ) (16 ) (33 ) 5 41 46 Amounts reclassified from other comprehensive income — — — — — — Net current-period other comprehensive income (loss) (17 ) (16 ) (33 ) 5 41 46 Ending balance $ 457 $ 1 $ 458 $ 457 $ 1 $ 458 Three Months Ended Nine Months Ended October 3, 2015 Foreign Unrealized Total Foreign Unrealized Total (In thousands) Beginning balance $ 585 $ 24 $ 609 $ 620 $ (1 ) $ 619 Other comprehensive income (loss) before reclassification (115 ) (1 ) (116 ) (150 ) 24 (126 ) Amounts reclassified from other comprehensive income — — — — — — Net current-period other comprehensive income (loss) (115 ) (1 ) (116 ) (150 ) 24 (126 ) Ending balance $ 470 $ 23 $ 493 $ 470 $ 23 $ 493

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	9 Months Ended
	Oct. 01, 2016
Computation of Basic and Diluted Loss Per Share	The following table sets forth the computation of basic and diluted loss per share: Three Months Ended Nine Months Ended October 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015 (In thousands, except per share amounts) Net loss $ (481 ) $ (3,759 ) $ (10,276 ) $ (6,640 ) Weighted-average shares – basic 20,869 22,004 20,704 22,621 Effect of dilutive potential common shares — — — — Weighted-average shares – diluted 20,869 22,004 20,704 22,621 Net loss per share – basic and diluted $ (0.02 ) $ (0.17 ) $ (0.50 ) $ (0.29 )

Segment Reporting (Tables)

Segment Reporting (Tables)	9 Months Ended
	Oct. 01, 2016
Information for Each Reportable Segment	Information for each reportable segment for the three and nine months ended October 1, 2016 and October 3, 2015 is as follows: Net Revenues Three Months Ended Nine Months Ended October 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015 (In thousands) Thin-film Equipment $ 14,272 $ 9,192 $ 25,941 $ 31,314 Photonics 8,287 9,226 25,201 27,448 Total segment net revenues $ 22,559 $ 18,418 $ 51,142 $ 58,762 Operating Income (Loss) Three Months Ended Nine Months Ended October 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015 (In thousands) Thin-film Equipment $ (998 ) $ (3,935 ) $ (10,117 ) $ (7,226 ) Photonics 1,737 1,308 3,656 4,060 Total segment operating income (loss) 739 (2,627 ) (6,461 ) (3,166 ) Unallocated costs (1,063 ) (1,153 ) (3,986 ) (3,270 ) Loss from operations (324 ) (3,780 ) (10,447 ) (6,436 ) Interest income and other income (expense), net 60 23 184 88 Loss before income taxes $ (264 ) $ (3,757 ) $ (10,263 ) $ (6,348 )
Assets for Each Reportable Segment	Total assets for each reportable segment as of October 1, 2016 and January 2, 2016 are as follows: Assets October 1, 2016 January 2, 2016 (In thousands) Thin-film Equipment $ 40,998 $ 29,528 Photonics 17,553 16,029 Total segment assets 58,551 45,557 Cash, cash equivalents and investments 40,902 46,627 Restricted cash 1,958 1,780 Deferred income taxes 3 12 Other current assets 2,090 1,052 Common property, plant and equipment 1,099 1,218 Other assets 925 1,435 Consolidated total assets $ 105,528 $ 97,681

Restructuring Charges (Tables)

Restructuring Charges (Tables)	9 Months Ended
	Oct. 01, 2016
Changes in Restructuring Reserves	The changes in restructuring reserves associated with the Plan for the nine months ended October 3, 2015 are as follows: October 3, 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	Oct. 01, 2016	Jan. 02, 2016
Inventory [Line Items]
Raw materials	$ 11,506	$ 11,081
Work-in-progress	11,300	4,365
Finished goods	4,108	3,314
Inventories	$ 26,914	$ 18,760

Equity-Based Compensation - Add

Equity-Based Compensation - Additional information (Detail)	1 Months Ended		3 Months Ended		9 Months Ended
	Feb. 29, 2016Employee$ / sharesshares	Feb. 28, 2015Employee$ / sharesshares	Oct. 01, 2016USD ($)	Oct. 03, 2015USD ($)	Oct. 01, 2016USD ($)shares	Oct. 03, 2015USD ($)
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					384,000
RSU conversion ratio					100.00%
Annual incentive plan stock awards granted					407,500
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of share awards granted					761,027
Annual incentive plan equity-based compensation expense | $			$ 120,000	$ 133,000	$ 364,000	$ 205,000
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
Restricted Stock Units (RSUs) | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award, vesting period					3 years
Restricted Stock Units (RSUs) | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award, vesting period					4 years
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

Effect of Recording Equity-Base

Effect of Recording Equity-Based Compensation (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015	Oct. 01, 2016	Oct. 03, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation	$ 905	$ 987	$ 2,896	$ 2,649
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation	211	265	696	707
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation	543	482	1,657	1,216
Employee stock purchase plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation	$ 151	$ 240	$ 543	$ 726

Option Activity and Changes (De

Option Activity and Changes (Detail)	9 Months Ended
	Oct. 01, 2016$ / sharesshares
Shares
Options outstanding at January 2, 2016 | shares	2,433,647
Options granted | shares	407,500
Options cancelled and forfeited | shares	(91,084)
Options exercised | shares	(6,959)
Options outstanding at October 1, 2016 | shares	2,743,104
Vested and expected to vest at October 1, 2016 | shares	2,607,235
Options exercisable at October 1, 2016 | shares	1,823,905
Weighted Average Exercise Price
Options outstanding at January 2, 2016 | $ / shares	$ 7.52
Options granted | $ / shares	4.83
Options cancelled and forfeited | $ / shares	11.40
Options exercised | $ / shares	4.52
Options outstanding at October 1, 2016 | $ / shares	7
Vested and expected to vest at October 1, 2016 | $ / shares	7.08
Options exercisable at October 1, 2016 | $ / shares	$ 7.74

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		9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015	Oct. 01, 2016	Oct. 03, 2015
Stock Options
Weighted-average assumptions
Weighted-average fair value of grants per share	$ 1.90	$ 1.78	$ 1.75	$ 2.06
Expected volatility	40.53%	45.87%	44.00%	46.25%
Risk free interest rate	0.97%	1.09%	0.94%	1.41%
Expected term of options (in years)	3 years 11 months 16 days	3 years 11 months 12 days	4 years 3 months 15 days	3 years 11 months 27 days
Dividend yield	0.00%	0.00%	0.00%	0.00%
Stock Purchase Rights
Weighted-average assumptions
Weighted-average fair value of grants per share	$ 1.69	$ 1.69	$ 1.55	$ 2.14
Expected volatility	37.51%	41.22%	39.22%	43.45%
Risk free interest rate	0.63%	0.69%	0.75%	0.45%
Expected term of options (in years)	1 year	1 year 10 months 24 days	1 year 10 months 13 days	1 year 4 months 10 days
Dividend yield	0.00%	0.00%	0.00%	0.00%

Summary of Restricted Stock Uni

Summary of Restricted Stock Units Activity (Detail) - Restricted Stock Units (RSUs)	9 Months Ended
	Oct. 01, 2016$ / sharesshares
Shares
Non-vested RSUs at January 2, 2016 | shares	553,584
Granted | shares	761,027
Vested | shares	(258,038)
Cancelled and forfeited | shares	(101,766)
Non-vested RSUs at October 1, 2016 | shares	954,807
Weighted Average Grant Date Fair Value
Non-vested RSUs at January 2, 2016 | $ / shares	$ 6.16
Granted | $ / shares	4.18
Vested | $ / shares	6.49
Cancelled and forfeited | $ / shares	4.81
Non-vested RSUs at October 1, 2016 | $ / shares	$ 4.64

Weighted Average Fair Value of

Weighted Average Fair Value of Market Condition Based RSUs (Detail) - Restricted Stock	9 Months Ended
	Oct. 01, 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	Oct. 01, 2016	Jan. 02, 2016
Finite-Lived Intangible Assets [Line Items]
Finite Lived, Gross Carrying Amount	$ 8,387
Accumulated Amortization	(5,915)	$ (5,275)
Finite Lived, Net Carrying Amount	2,472	$ 3,112
Thin-film Equipment Segment
Finite-Lived Intangible Assets [Line Items]
Finite Lived, Gross Carrying Amount	7,172
Accumulated Amortization	(4,944)
Finite Lived, Net Carrying Amount	2,228
Photonics
Finite-Lived Intangible Assets [Line Items]
Finite Lived, Gross Carrying Amount	1,215
Accumulated Amortization	(971)
Finite Lived, Net Carrying Amount	$ 244

Purchased Intangible Assets - A

Purchased Intangible Assets - Additional Information (Detail) - USD ($)	3 Months Ended	9 Months Ended
	Oct. 01, 2016	Oct. 01, 2016
Acquired Finite-Lived Intangible Assets [Line Items]
Total amortization expense of finite-lived intangibles	$ 213,000	$ 640,000

Estimated Future Amortization E

Estimated Future Amortization Expense Related to Finite-Lived Purchased Intangible Assets (Detail) - USD ($) $ in Thousands	Oct. 01, 2016	Jan. 02, 2016
Finite-Lived Intangible Assets [Line Items]
2,016	$ 213
2,017	754
2,018	615
2,019	615
2,020	275
Finite Lived, Net Carrying Amount	$ 2,472	$ 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		9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015	Oct. 01, 2016	Oct. 03, 2015
Business Acquisition, Contingent Consideration [Line Items]
Opening balance	$ 748	$ 934	$ 890	$ 1,134
Changes in fair value	52	(150)	(90)	(350)
Closing balance	$ 800	$ 784	$ 800	$ 784

Balance Sheet Classification of

Balance Sheet Classification of Contingent Consideration Liability (Detail) - USD ($) $ in Thousands	Oct. 01, 2016	Jan. 02, 2016
Business Combination, Transactions [Line Items]
Other accrued liabilities	$ 800	$ 890
Other accrued liabilities
Business Combination, Transactions [Line Items]
Other accrued liabilities	108	179
Other long-term liabilities
Business Combination, Transactions [Line Items]
Other accrued liabilities	$ 692	$ 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	9 Months Ended
	Oct. 01, 2016	Jan. 02, 2016
Business Acquisition, Contingent Consideration [Line Items]
Fair Value	$ 800	$ 890
Fair Value, Inputs, Level 3 | Revenue Earnout
Business Acquisition, Contingent Consideration [Line Items]
Valuation technique	Discounted cash flow
Fair Value	$ 800
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	31.80%
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)	9 Months Ended
	Oct. 01, 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		9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015	Oct. 01, 2016	Oct. 03, 2015
Accrued Warranty [Line Items]
Opening balance	$ 592	$ 1,278	$ 982	$ 1,186
Expenditures incurred under warranties	(80)	(77)	(384)	(297)
Accruals for product warranties issued during the reporting period	320	139	494	738
Adjustments to previously existing warranty accruals	(110)	(169)	(370)	(456)
Closing balance	$ 722	$ 1,171	$ 722	$ 1,171

Balance Sheet Classification 50

Balance Sheet Classification of Warranty Provision Account (Detail) - USD ($) $ in Thousands	Oct. 01, 2016	Jul. 02, 2016	Jan. 02, 2016	Oct. 03, 2015	Jul. 04, 2015	Jan. 03, 2015
Product Warranty [Line Items]
Other accrued liabilities	$ 579		$ 835
Other long-term liabilities	143		147
Total warranty provision	$ 722	$ 592	$ 982	$ 1,171	$ 1,278	$ 1,186

Guarantees - Additional Informa

Guarantees - Additional Information (Detail) $ in Millions	Oct. 01, 2016USD ($)
Guarantor Obligations [Line Items]
Letters of credit and bank guarantees outstanding, amount	$ 2
Letters of credit and bank guarantees collateralized by restricted cash	$ 2

Cash, Cash Equivalents and Shor

Cash, Cash Equivalents and Short-Term Investments and Long-Term Investments (Detail) - USD ($) $ in Thousands	Oct. 01, 2016	Jan. 02, 2016
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 40,901	$ 46,667
Unrealized Holdings Gains	8
Unrealized Holdings Losses	7	40
Fair Value	40,902	46,627
Cash and Cash Equivalents
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	20,823	13,746
Fair Value	20,823	13,746
Short-term Investments
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	15,821	23,215
Unrealized Holdings Gains	5
Unrealized Holdings Losses	4	7
Fair Value	15,822	23,208
Short-term Investments | Corporate bonds and medium-term notes
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	6,847	9,978
Unrealized Holdings Gains	2
Unrealized Holdings Losses	3	7
Fair Value	6,846	9,971
Short-term Investments | Municipal bonds
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	1,027	4,238
Fair Value	1,027	4,238
Short-term Investments | U.S. treasury and agency securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	6,454	8,999
Unrealized Holdings Gains	3
Fair Value	6,457	8,999
Other Long-term Investments
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	4,257	9,706
Unrealized Holdings Gains	3
Unrealized Holdings Losses	3	33
Fair Value	4,257	9,673
Other Long-term Investments | Corporate bonds and medium-term notes
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	3,757	6,212
Unrealized Holdings Gains	3
Unrealized Holdings Losses	2	23
Fair Value	3,758	6,189
Other Long-term Investments | Municipal bonds
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	500
Unrealized Holdings Losses	1
Fair Value	499
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	12,457	6,208
Fair Value	12,457	6,208
Money market funds
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	8,366	7,538
Fair Value	8,366	$ 7,538
Commercial Paper | Short-term Investments
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	1,493
Unrealized Holdings Losses	1
Fair Value	$ 1,492

Contractual Maturities of Avail

Contractual Maturities of Available-For-Sale Securities (Detail) $ in Thousands	Oct. 01, 2016USD ($)
Amortized Cost
Amortized Cost, Due in one year or less	$ 24,187
Amortized Cost, Due after one through two years	4,257
Amortized Cost	28,444
Fair Value
Fair Value, Due in one year or less	24,188
Fair Value, Due after one through two years	4,257
Fair Value	$ 28,445

Fair Market Value of Investment

Fair Market Value of Investments with Unrealized Losses Not Deemed to be Other-Than Temporarily Impaired (Detail) $ in Thousands	Oct. 01, 2016USD ($)
Schedule of Available-for-sale Securities [Line Items]
Unrealized Loss Position, Less than 12 Months, Fair Value	$ 7,908
Unrealized Loss Position, Less than 12 Months, Gross Unrealized Losses	7
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	1,092
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
Corporate bonds and medium-term notes
Schedule of Available-for-sale Securities [Line Items]
Unrealized Loss Position, Less than 12 Months, Fair Value	5,717
Unrealized Loss Position, Less than 12 Months, Gross Unrealized Losses	5
Unrealized Loss Position, Greater than 12 Months, Fair Value	0
Unrealized Loss Position, Greater than 12 Months, Gross Unrealized Losses	0
Municipal bonds
Schedule of Available-for-sale Securities [Line Items]
Unrealized Loss Position, Less than 12 Months, Fair Value	1,099
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	Oct. 01, 2016USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total recurring fair value measurements	$ 28,445
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total recurring fair value measurements	28,445
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	8,366
Fair Value, Measurements, Recurring | Commercial Paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total recurring fair value measurements	1,492
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	6,457
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	10,604
Fair Value, Measurements, Recurring | Municipal bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total recurring fair value measurements	1,526
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	11,866
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	8,366
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	3,500
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	16,579
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	1,492
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	2,957
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	10,604
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	$ 1,526

Derivative Instruments - Additi

Derivative Instruments - Additional Information (Detail)	9 Months Ended
	Oct. 01, 2016
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

Summary of Outstanding Derivati

Summary of Outstanding Derivative Instruments on Gross Basis as Recorded in Consolidated Balance Sheets (Detail) - Undesignated Hedges - USD ($) $ in Thousands		Oct. 01, 2016	Jan. 02, 2016
Derivatives, Fair Value [Line Items]
Notional Amounts		$ 1,993	$ 924
Derivative Assets	[1]		1
Derivative Liabilities	[2]	9	4
Foreign currency forward contracts
Derivatives, Fair Value [Line Items]
Notional Amounts		1,993	924
Derivative Assets	[1]		1
Derivative Liabilities	[2]	$ 9	$ 4
[1]	Prepaid expenses and other current assets
[2]	Other accrued liabilities

Equity - Additional Information

Equity - Additional Information (Detail) - USD ($)	Oct. 01, 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	9 Months Ended
	Oct. 03, 2015	Oct. 03, 2015
Equity, Class of Treasury Stock [Line Items]
Shares of common stock repurchased	331	1,903
Cost of stock repurchased	$ 1,670	$ 10,950
Average price paid per share	$ 5.01	$ 5.73

Changes in Accumulated Other Co

Changes in Accumulated Other Comprehensive Income by Component (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015	Oct. 01, 2016	Oct. 03, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			$ 75,997
Other comprehensive income (loss) before reclassification	$ (33)	$ (116)	46	$ (126)
Amounts reclassified from other comprehensive income	0	0	0	0
Net current-period other comprehensive income (loss)	(33)	(116)	46	(126)
Ending balance	69,862		69,862
Foreign currency
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	474	585	452	620
Other comprehensive income (loss) before reclassification	(17)	(115)	5	(150)
Amounts reclassified from other comprehensive income	0	0	0	0
Net current-period other comprehensive income (loss)	(17)	(115)	5	(150)
Ending balance	457	470	457	470
Unrealized holding gains on available-for-sale investments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	17	24	(40)	(1)
Other comprehensive income (loss) before reclassification	(16)	(1)	41	24
Amounts reclassified from other comprehensive income	0	0	0	0
Net current-period other comprehensive income (loss)	(16)	(1)	41	24
Ending balance	1	23	1	23
Accumulated other comprehensive income
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	491	609	412	619
Amounts reclassified from other comprehensive income	0	0	0	0
Ending balance	$ 458	$ 493	$ 458	$ 493

Computation of Basic and Dilute

Computation of Basic and Diluted Loss Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015	Oct. 01, 2016	Oct. 03, 2015
Schedule Of Computation Of Basic And Diluted Earnings Per Common Share [Line Items]
Net loss	$ (481)	$ (3,759)	$ (10,276)	$ (6,640)
Weighted-average shares - basic	20,869	22,004	20,704	22,621
Effect of dilutive potential common shares	0	0	0	0
Weighted-average shares - diluted	20,869	22,004	20,704	22,621
Net loss per share - basic and diluted	$ (0.02)	$ (0.17)	$ (0.50)	$ (0.29)

Segment Reporting - Additional

Segment Reporting - Additional Information (Detail)	9 Months Ended
	Oct. 01, 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		9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015	Oct. 01, 2016	Oct. 03, 2015
Segment Reporting Information [Line Items]
Total segment net revenues	$ 22,559	$ 18,418	$ 51,142	$ 58,762
Loss from operations	(324)	(3,780)	(10,447)	(6,436)
Interest income and other income (expense), net	60	23	184	88
Loss before income taxes	(264)	(3,757)	(10,263)	(6,348)
Thin-film Equipment Segment
Segment Reporting Information [Line Items]
Total segment net revenues	14,272	9,192	25,941	31,314
Photonics
Segment Reporting Information [Line Items]
Total segment net revenues	8,287	9,226	25,201	27,448
Operating Segments
Segment Reporting Information [Line Items]
Loss from operations	739	(2,627)	(6,461)	(3,166)
Operating Segments | Thin-film Equipment Segment
Segment Reporting Information [Line Items]
Loss from operations	(998)	(3,935)	(10,117)	(7,226)
Operating Segments | Photonics
Segment Reporting Information [Line Items]
Loss from operations	1,737	1,308	3,656	4,060
Unallocated Amount to Segment
Segment Reporting Information [Line Items]
Unallocated costs	$ (1,063)	$ (1,153)	$ (3,986)	$ (3,270)

Assets for Each Reportable Segm

Assets for Each Reportable Segment (Detail) - USD ($) $ in Thousands	Oct. 01, 2016	Jan. 02, 2016
Segment Reporting, Asset Reconciling Item [Line Items]
Cash, cash equivalents and investments	$ 40,902	$ 46,627
Restricted cash	1,958	1,780
Deferred income taxes	3	12
Other current assets	2,090	1,052
Common property, plant and equipment	1,099	1,218
Other assets	925	1,435
Consolidated total assets	105,528	97,681
Operating Segments
Segment Reporting, Asset Reconciling Item [Line Items]
Consolidated total assets	58,551	45,557
Operating Segments | Thin-film Equipment Segment
Segment Reporting, Asset Reconciling Item [Line Items]
Consolidated total assets	40,998	29,528
Operating Segments | Photonics
Segment Reporting, Asset Reconciling Item [Line Items]
Consolidated total assets	$ 17,553	$ 16,029

Restructuring Charges - Additio

Restructuring Charges - Additional Information (Detail) $ in Millions	9 Months Ended
	Oct. 01, 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	9 Months Ended
	Oct. 03, 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 ($) $ in Thousands	3 Months Ended			9 Months Ended
	Oct. 01, 2016	Jul. 02, 2016	Oct. 03, 2015	Oct. 01, 2016	Oct. 03, 2015	Jun. 30, 2016	Jan. 02, 2016	Jan. 03, 2015
Income Taxes [Line Items]
Provision for income taxes	$ 217		$ 2	$ 13	$ 292
Foreign Tax Authority
Income Taxes [Line Items]
Income tax charge (benefit)				(281)	$ 262
Foreign Tax Authority | Singapore
Income Taxes [Line Items]
Income tax charge (benefit)	172			216
Inland Revenue, Singapore (IRAS)
Income Taxes [Line Items]
Deposit for contested taxes and related interest	$ 919			$ 919			$ 1,400
Partial refund received for contested taxes						$ (517)
Derecognition of portion of tax accrual		$ (281)
Reduction in income tax provision		$ (281)
Inland Revenue, Singapore (IRAS) | Tax Year 2009
Income Taxes [Line Items]
Deposit for contested taxes and related interest								$ 318
Inland Revenue, Singapore (IRAS) | Tax Year 2010
Income Taxes [Line Items]
Deposit for contested taxes and related interest							$ 1,100