Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 15, 2017 | Jul. 02, 2016 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | IVAC | ||
Entity Registrant Name | INTEVAC INC | ||
Entity Central Index Key | 1,001,902 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 21,390,336 | ||
Entity Public Float | $ 101,863,142 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 27,043 | $ 13,746 |
Short-term investments | 17,602 | 23,208 |
Trade and other accounts receivable, net of allowances of $0 at both December 31, 2016 and January 2, 2016 | 17,447 | 12,310 |
Inventories | 24,876 | 18,760 |
Prepaid expenses and other current assets | 1,768 | 1,712 |
Total current assets | 88,736 | 69,736 |
Property, plant and equipment, net | 11,237 | 11,921 |
Long-term investments | 3,593 | 9,673 |
Restricted cash | 1,602 | 1,780 |
Intangible assets, net of amortization of $6,129 and $5,275 at December 31, 2016 and January 2, 2016, respectively | 2,258 | 3,112 |
Other long-term assets | 898 | 1,459 |
Total assets | 108,324 | 97,681 |
Current liabilities: | ||
Accounts payable | 5,323 | 5,950 |
Accrued payroll and related liabilities | 4,220 | 4,066 |
Other accrued liabilities | 17,011 | 5,632 |
Customer advances | 5,422 | 3,625 |
Total current liabilities | 31,976 | 19,273 |
Other long-term liabilities | 3,082 | 2,411 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Undesignated preferred stock, $0.001 par value, 10,000 shares authorized, no shares issued and outstanding | ||
Common stock, $0.001 par value : Authorized shares - 50,000 issued and outstanding shares - 20,939 and 20,372 at December 31, 2016 and January 2, 2016, respectively | 21 | 20 |
Additional paid-in capital | 171,314 | 166,514 |
Treasury stock, 4,845 shares at both December 31, 2016 and January 2, 2016 | (28,489) | (28,489) |
Accumulated other comprehensive income | 321 | 412 |
Accumulated deficit | (69,901) | (62,460) |
Total stockholders' equity | 73,266 | 75,997 |
Total liabilities and stockholders' equity | $ 108,324 | $ 97,681 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Net of allowances of trade, note and other accounts receivable | $ 0 | $ 0 |
Net of amortization of intangible assets | $ 6,129 | $ 5,275 |
Undesignated preferred stock, par value | $ 0.001 | $ 0.001 |
Undesignated preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Undesignated preferred stock, shares issued | 0 | 0 |
Undesignated preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 20,939,000 | 20,372,000 |
Common stock, shares outstanding | 20,939,000 | 20,372,000 |
Treasury stock, shares | 4,845,000 | 4,845,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Net revenues: | |||
Systems and components | $ 74,342 | $ 68,072 | $ 54,463 |
Technology development | 5,782 | 7,088 | 11,087 |
Total net revenues | 80,124 | 75,160 | 65,550 |
Cost of net revenues: | |||
Systems and components | 45,263 | 43,700 | 40,284 |
Technology development | 4,452 | 5,143 | 7,833 |
Total cost of net revenues | 49,715 | 48,843 | 48,117 |
Gross profit | 30,409 | 26,317 | 17,433 |
Operating expenses: | |||
Research and development | 18,156 | 15,661 | 15,832 |
Selling, general and administrative | 19,916 | 19,638 | 21,205 |
Acquisition-related (benefit), net | (100) | (244) | (250) |
Total operating expenses | 37,972 | 35,055 | 36,787 |
Operating loss | (7,563) | (8,738) | (19,354) |
Interest income | 195 | 179 | 179 |
Other income (expense), net | 178 | (52) | 158 |
Income (loss) before income taxes | (7,190) | (8,611) | (19,017) |
Provision for income taxes | 251 | 555 | 8,428 |
Net loss | $ (7,441) | $ (9,166) | $ (27,445) |
Net loss per share: | |||
Basic and diluted | $ (0.36) | $ (0.41) | $ (1.16) |
Weighted average shares outstanding: | |||
Basic and diluted | 20,761 | 22,218 | 23,671 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Net loss | $ (7,441) | $ (9,166) | $ (27,445) |
Other comprehensive loss, before tax | |||
Change in unrealized net loss on available-for-sale investments | 18 | (39) | (35) |
Foreign currency translation losses | (109) | (168) | (71) |
Other comprehensive loss, before tax | (91) | (207) | (106) |
Income tax expense related to items in other comprehensive loss | 0 | 0 | 0 |
Other comprehensive loss, net of tax | (91) | (207) | (106) |
Comprehensive loss | $ (7,532) | $ (9,373) | $ (27,551) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Beginning balance at Dec. 31, 2013 | $ 129,571 | $ 24 | $ 156,359 | $ (1,688) | $ 725 | $ (25,849) |
Beginning Balance (in shares) at Dec. 31, 2013 | 23,767,000 | 241,000 | ||||
Shares issued in connection with: | ||||||
Exercise of stock options (in shares) | 190,000 | |||||
Exercise of stock options | $ 948 | 948 | ||||
Settlement of RSUs (in shares) | 72,000 | |||||
Employee stock purchase plan (in shares) | 444,000 | 444,000 | ||||
Employee stock purchase plan | $ 1,611 | 1,611 | ||||
Shares withheld in connection with net share settlement of RSUs (in shares) | (13,000) | |||||
Shares withheld in connection with net share settlement of RSUs | (92) | (92) | ||||
Equity-based compensation expense | 2,445 | 2,445 | ||||
Net loss | (27,445) | (27,445) | ||||
Other comprehensive loss | $ (106) | (106) | ||||
Common stock repurchases (in shares) | 1,185,000 | (1,185,000) | 1,185,000 | |||
Common stock repurchases | $ (8,302) | $ (1) | $ (8,301) | |||
Ending Balance at Jan. 03, 2015 | 98,630 | $ 23 | 161,271 | $ (9,989) | 619 | (53,294) |
Ending Balance (in shares) at Jan. 03, 2015 | 23,275,000 | 1,426,000 | ||||
Shares issued in connection with: | ||||||
Exercise of stock options (in shares) | 54,000 | |||||
Exercise of stock options | $ 239 | 239 | ||||
Settlement of RSUs (in shares) | 113,000 | |||||
Employee stock purchase plan (in shares) | 374,000 | 374,000 | ||||
Employee stock purchase plan | $ 1,460 | 1,460 | ||||
Shares withheld in connection with net share settlement of RSUs (in shares) | (25,000) | |||||
Shares withheld in connection with net share settlement of RSUs | (132) | (132) | ||||
Equity-based compensation expense | 3,296 | 3,296 | ||||
Grant of RSUs to settle accrued bonus | 380 | 380 | ||||
Net loss | (9,166) | (9,166) | ||||
Other comprehensive loss | $ (207) | (207) | ||||
Common stock repurchases (in shares) | 3,419,000 | (3,419,000) | 3,419,000 | |||
Common stock repurchases | $ (18,503) | $ (3) | $ (18,500) | |||
Ending Balance at Jan. 02, 2016 | $ 75,997 | $ 20 | 166,514 | $ (28,489) | 412 | (62,460) |
Ending Balance (in shares) at Jan. 02, 2016 | 20,372,000 | 4,845,000 | ||||
Shares issued in connection with: | ||||||
Exercise of stock options (in shares) | 8,553 | 9,000 | ||||
Exercise of stock options | $ 38 | 38 | ||||
Settlement of RSUs (in shares) | 269,000 | |||||
Employee stock purchase plan (in shares) | 384,000 | 384,000 | ||||
Employee stock purchase plan | $ 1,451 | $ 1 | 1,450 | |||
Shares withheld in connection with net share settlement of RSUs (in shares) | (95,000) | |||||
Shares withheld in connection with net share settlement of RSUs | (426) | (426) | ||||
Equity-based compensation expense | 3,254 | 3,254 | ||||
Grant of RSUs to settle accrued bonus | 484 | 484 | ||||
Net loss | (7,441) | (7,441) | ||||
Other comprehensive loss | (91) | (91) | ||||
Ending Balance at Dec. 31, 2016 | $ 73,266 | $ 21 | $ 171,314 | $ (28,489) | $ 321 | $ (69,901) |
Ending Balance (in shares) at Dec. 31, 2016 | 20,939,000 | 4,845,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Operating activities | |||
Net loss | $ (7,441) | $ (9,166) | $ (27,445) |
Adjustments to reconcile net loss to net cash and cash equivalents provided by (used in) operating activities: | |||
Depreciation & amortization | 3,983 | 3,743 | 3,769 |
Net amortization (accretion) of investment premiums and discounts | 128 | 319 | 655 |
Amortization of intangible assets | 854 | 854 | 936 |
Equity-based compensation | 3,744 | 3,620 | 3,000 |
Deferred income taxes | 9 | (12) | (728) |
Deferred income taxes valuation allowance | 9,394 | ||
Change in the fair value of acquisition-related contingent consideration | (100) | (244) | (250) |
Loss (gain) on disposal of equipment | (136) | 271 | 41 |
Changes in assets and liabilities: | |||
Accounts receivable | (5,137) | (223) | 2,950 |
Inventories | (6,116) | 452 | 3,550 |
Prepaid expenses and other assets | 496 | (1,382) | (166) |
Accounts payable | (627) | 1,310 | 629 |
Accrued payroll and other accrued liabilities | 12,329 | 19 | 2,163 |
Customer advances | 1,797 | 1,074 | (1,192) |
Total adjustments | 11,224 | 9,801 | 24,751 |
Net cash and cash equivalents provided by (used in) operating activities | 3,783 | 635 | (2,694) |
Investing activities | |||
Purchase of investments | (12,429) | (21,058) | (35,703) |
Proceeds from sales and maturities of investments | 24,005 | 32,900 | 51,225 |
Proceeds from sale of equipment | 208 | 11 | 13 |
Decrease (increase) in restricted cash | 178 | (1,780) | |
Purchase of equipment | (3,373) | (3,117) | (3,705) |
Net cash and cash equivalents provided by investing activities | 8,589 | 8,736 | 10,050 |
Financing activities | |||
Proceeds from issuance of common stock | 1,489 | 1,699 | 2,559 |
Common stock repurchases | (18,503) | (8,392) | |
Taxes paid related to net share settlement | (426) | (132) | (92) |
Payment of acquisition-related contingent consideration | (31) | ||
Net cash and cash equivalents used in financing activities | 1,032 | (16,936) | (5,925) |
Effect of exchange rate changes on cash | (107) | (171) | (70) |
Net increase (decrease) in cash and cash equivalents | 13,297 | (7,736) | 1,361 |
Cash and cash equivalents at beginning of period | 13,746 | 21,482 | 20,121 |
Cash and cash equivalents at end of period | 27,043 | 13,746 | 21,482 |
Cash paid (received) for: | |||
Income taxes | 516 | $ 1,190 | $ 378 |
Income tax refund | $ (524) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of Intevac, Inc. and its subsidiaries (Intevac or the Company) after elimination of inter-company balances and transactions. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. Change in Fiscal Year End Date On February 19, 2014, the Board of Directors of the Company approved the Company’s change to a 52-53 week fiscal year ending on the Saturday nearest to December 31 of each year in order to improve the alignment of financial and business processes and to streamline financial reporting. Each fiscal quarter consists of 13 weeks, with an occasional fourth quarter extending to 14 weeks, if necessary, for the fiscal year to end on the Saturday nearest to December 31. The Company’s fiscal 2016, fiscal 2015 and fiscal 2014 years ended on December 31, 2016, January 2, 2016 and on January 3, 2015, respectively. Cash, Cash Equivalents and Investments Intevac considers all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents. Available-for-sale securities, comprised of commercial paper, obligations of the U.S. government and its agencies, corporate debt securities and municipal bonds, are carried at fair value, with unrealized gains and losses recorded within other comprehensive income (loss) as a separate component of stockholders’ equity. Realized gains and losses and declines in value judged to be other than temporary, if any, on available-for-sale securities are included in earnings. Purchases and sales of investment securities are recognized on a trade date basis. The cost of investment securities sold is determined by the specific identification method. Restricted Cash Restricted cash of $1.0 million as of December 31, 2016 secures a standby letter of credit obligation associated with a lease obligation and the restriction on the cash will be removed when the letter of credit expires. In addition Intevac pledged $602,000 as collateral for various guarantees with its bank. Derivative Instruments and Hedging Arrangements Foreign Exchange Exposure Management Fair Value Measurement—Definition and Hierarchy Intevac reports certain financial assets and liabilities at fair value. Intevac defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are classified and disclosed in one of the following three categories: Level 1 Level 2 Level 3 Trade Accounts Receivables and Doubtful Accounts Intevac evaluates the collectibility of trade accounts receivable on an ongoing basis and provides reserves against potential losses when appropriate. Management analyzes historical bad debts, customer concentrations, customer creditworthiness, changes in customer payment tendencies and current economic trends when evaluating the adequacy of the allowance for doubtful accounts. Customer accounts are written off against the allowance when the amount is deemed uncollectible. Inventories Inventories are generally stated at the lower of cost or market, with cost determined on an average cost basis. Property, Plant and Equipment Equipment and leasehold improvements are stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets as follows: computers and software, 3 years; machinery and equipment, 5 years; furniture, 7 years; vehicles, 4 years; and leasehold improvements, remaining lease term. Contingent Consideration and Purchased Intangible Assets Contingent consideration related to a business combination is recorded at the acquisition date at the estimated fair value of the contingent payments. The acquisition date fair value is measured based on the consideration expected to be transferred (probability-weighted), discounted back to present value. The discount rate used is determined at the time of the acquisition in accordance with accepted valuation methods. The fair value of the acquisition-related contingent consideration is remeasured at the estimated fair value at each reporting period with the change in fair value recognized as income or expense in the consolidated statements of operations. Purchased intangible assets other than goodwill are amortized over their useful lives unless these lives are determined to be indefinite. Purchased intangible assets are carried at cost, less accumulated amortization. Amortization is computed over the estimated useful lives of the respective assets, generally one to thirteen years using the straight line method. In 2012, as a result of its impairment analysis, Intevac wrote off all of the goodwill in both its Thin-film Equipment and Photonics reporting units. Impairment of Long-Lived Assets Long-lived assets and certain identifiable finite-lived intangible assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability of long-lived assets is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. Measurement of an impairment loss for long-lived assets and certain identifiable intangible assets that management expects to hold and use is based on the fair value of the asset. When an impairment loss is recognized, the carrying amount of the asset is reduced to its estimated fair value. No impairment charges were recognized in fiscal 2016, 2015 and 2014. Income Taxes Deferred tax assets and liabilities are recognized using enacted tax rates for the effect of temporary differences between book and tax bases of recorded assets and liabilities. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that a portion of the deferred tax asset will not be realized. On a quarterly basis, Intevac provides for income taxes based upon an annual effective income tax rate. The effective tax rate is highly dependent upon 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. Intevac carefully monitors the changes in many factors and adjust its effective income tax rate on a timely basis. If actual results differ from the estimates, this could have a material effect on Intevac’s business, financial condition and results of operations. The calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of complex tax laws. Resolution of these uncertainties in a manner inconsistent with Intevac’s expectations could have a material effect on Intevac’s business, financial condition and results of operations. Intevac recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes. Sales and Value Added Taxes Taxes collected from customers and remitted to governmental authorities are presented on a net basis in the accompanying consolidated statements of operations. Revenue Recognition Intevac recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred and title and risk of loss have passed to Intevac’s customer or services have been rendered, the price is fixed or determinable, and collectibility is reasonably assured. Intevac’s shipping terms are customarily FOB shipping point or equivalent terms. Intevac’s revenue recognition policy generally results in revenue recognition at the following points: (1) for all transactions where legal title passes to the customer upon shipment, Intevac recognizes revenue upon shipment for all products that have been demonstrated to meet product specifications prior to shipment; the portion of revenue associated with certain installation-related tasks is deferred, and that revenue is recognized upon completion of the installation-related tasks; (2) for products that have not been demonstrated to meet product specifications prior to shipment, revenue is recognized at customer acceptance; and (3) for arrangements containing multiple elements, the revenue relating to the undelivered elements is deferred until delivery of the deferred elements. When a sales arrangement contains multiple elements, Intevac allocates revenue to each element based on a selling price hierarchy. The selling price for a deliverable is based on its VSOE if available, TPE if VSOE is not available, or best ESP if neither VSOE nor TPE is available. Intevac generally utilizes the ESP due to the nature of its products. In certain cases, technology upgrade sales are accounted for as multiple-element arrangements, usually split between delivery of the parts and installation on the customer’s systems. In these cases, Intevac recognizes revenue for the relative sales price of the parts upon shipment and transfer of title, and recognizes revenue for the relative sales price of installation services when those services are completed. Revenue related to sales of spare parts is generally recognized upon shipment. Intevac recognizes revenue in certain circumstances before delivery has occurred (commonly referred to as bill and hold transactions). In such circumstances, among other things, risk of ownership has passed to the customer, the customer has made a written fixed commitment to purchase the finished goods, the customer has requested the finished goods be held for future delivery as scheduled and designated by them, and no additional performance obligations exist by Intevac. For these transactions, the finished goods are segregated from inventory and normal billing and credit terms granted. Revenue related to services is generally recognized upon completion of the services. In addition, Intevac uses the installment method to record revenue based on cash receipts in situations where the account receivable is collected over an extended period of time and in management’s judgment the degree of collectibility is uncertain. Intevac performs research and development work under various government-sponsored research contracts. Revenue on cost-plus-fee contracts is recognized to the extent of costs actually incurred plus a proportionate amount of the fee earned. Intevac considers fixed fees under cost-plus-fee contracts to be earned in proportion to the allowable costs actually incurred in performance of the contract. Revenue on fixed-price contracts is recognized on a milestone method or percentage-of-completion method of contract accounting. For contracts structured as milestone agreements, revenue is recognized when a specified milestone is achieved, provided that (1) the milestone event is substantive in nature and there is substantial uncertainty about the achievement of the milestone at the inception of the agreement, (2) the milestone payment is non-refundable, and (3) there is no continuing performance obligations associated with the milestone payment. Any milestone payments received prior to satisfying these revenue recognition criteria are deferred. Intevac generally determines the percentage completed based on the percentage of costs incurred to date in relation to total estimated costs expected through completion of the contract. When estimates of total costs to be incurred on a contract exceed estimates of total revenue to be earned, a provision for the entire loss on the contract is recorded in the period the loss is determined. Advertising Costs Advertising costs are expensed as incurred. Advertising costs were not material for all periods presented. Foreign Currency Translation The functional currency of Intevac’s foreign subsidiaries in Singapore and Hong Kong and the Taiwan branch is the U.S. dollar. The functional currency of Intevac’s foreign subsidiaries in China, Malaysia and Korea is the local currency of the country in which the respective subsidiary operates. Assets and liabilities recorded in foreign currencies are translated at year-end exchange rates; revenues and expenses are translated at average exchange rates during the year. The effect of foreign currency translation adjustments are included in stockholders’ equity as a component of accumulated other comprehensive income in the accompanying consolidated balance sheets. The effects of foreign currency transactions are included in other income in the determination of net loss. Net income (losses) from foreign currency transactions were ($99,000), $80,000, and $11,000 in 2016, 2015 and 2014, respectively. Comprehensive Income The changes in accumulated other comprehensive income by component, were as follows for the years ended December 31, 2016 and January 2, 2016: Foreign Unrealized Total (in thousands) Balance at January 3, 2015 $ 620 $ (1 ) $ 619 Other comprehensive loss before reclassification (168 ) (39 ) (207 ) Amounts reclassified from other comprehensive income — — — Net current-period other comprehensive loss (168 ) (39 ) (207 ) Balance at January 2, 2016 $ 452 $ (40 ) $ 412 Other comprehensive loss before reclassification (109 ) 18 (91 ) Amounts reclassified from other comprehensive income — — — Net current-period other comprehensive loss (109 ) 18 (91 ) Balance at December 31, 2016 $ 343 $ (22 ) $ 321 Employee Stock Plans Intevac has equity-based compensation plans that provide for the grant to employees of equity-based awards, including incentive or non-statutory stock options, restricted stock, stock appreciation rights, restricted stock units (“RSUs”), performance units and performance bonus awards. In addition, these plans provide for the grant of non-statutory stock options and RSUs to non-employee directors and consultants. Intevac also has an employee stock purchase plan, which provides Intevac’s employees with the opportunity to purchase Intevac common stock at a discount through payroll deductions. See Note 2 for a complete description of these plans and their accounting treatment. Recent Accounting Pronouncements In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-11, Inventory (Topic 330), Simplifying the Measurement of Inventory In May 2014, the FASB issued ASU 2014-09 Revenue from Contracts with Customers (Topic 606) 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 February 2016, the 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) 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 In October 2016, the FASB issued ASU 2016-17, Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805) Clarifying the Definition of a Business |
Equity-Based Compensation
Equity-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Equity-Based Compensation | 2. Equity-Based Compensation Intevac accounts for share-based awards in accordance with the provisions of the accounting guidance which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees, consultants and directors based upon the grant-date fair value of those awards. The estimated fair value of Intevac’s equity-based awards, less expected forfeitures, is amortized over the awards’ service periods using the graded vesting attribution method. Descriptions of Plans Equity Incentive Plans At December 31, 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 are a broad-based, long-term retention program intended to attract and retain qualified management and employees, and align stockholder and employee interests. The Plans permit the grant of incentive or non-statutory stock options, restricted stock, stock appreciation rights, RSUs and performance shares. Option price, vesting period, and other terms are determined by the administrator of the Plans, but the option price shall generally not be less than 100% of the fair market value per share on the date of grant. As of December 31, 2016, 5.5 million shares of common stock were authorized for future issuance under the Plans. The 2012 Plan expires no later than May 8, 2022. 2003 Employee Stock Purchase Plan In 2003, Intevac’s stockholders approved adoption of the ESPP, which serves as the successor to the Employee Stock Purchase Plan originally adopted in 1995. Upon adoption of the ESPP, all shares available for issuance under the prior plan were transferred to the ESPP. The ESPP provides that eligible employees may purchase Intevac common stock through payroll deductions at a price equal to 85% of the lower of the fair market value at the beginning of the applicable offering period or at the end of each applicable purchase interval. Offering periods are generally two years in length, and consist of a series of six-month purchase intervals. Eligible employees may join the ESPP at the beginning of any six-month purchase interval. Under the terms of the ESPP, employees can choose to have up to 15% of their base earnings withheld to purchase Intevac common stock. As of December 31, 2016, 242,000 shares remained available for issuance under the ESPP. The effect of recording equity-based compensation for fiscal 2016, 2015 and 2014 was as follows (in thousands): 2016 2015 2014 Equity-based compensation by type of award: Stock options $ 880 $ 963 $ 1,094 RSUs 2,190 1,711 1,464 Employee stock purchase plan 674 946 442 Total equity-based compensation $ 3,744 $ 3,620 $ 3,000 Stock Options The exercise price of each stock option equals the market price of Intevac’s stock on the date of grant. Most options are scheduled to vest over three and/or four years and expire no later than ten years after the grant date. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model. This model was developed for use in estimating the value of publicly traded options that have no vesting restrictions and are fully transferable. Intevac’s employee stock options have characteristics significantly different from those of publicly traded options. The weighted-average assumptions used in the model are outlined in the following table: 2016 2015 2014 Stock Options: Weighted-average fair value of grants per share $ 1.76 $ 2.05 $ 3.15 Expected volatility 43.86 % 46.12 % 52.12 % Risk free interest rate 0.97 % 1.42 % 1.39 % Expected term of options (in years) 4.28 3.99 4.38 Dividend yield None None None The computation of the expected volatility assumption used in the Black-Scholes calculations for new grants is based on historical volatility of Intevac’s stock price. The risk-free interest rate is based on the yield available on U.S. Treasury Strips with an equivalent remaining term. The expected life 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 stock-based awards and vesting schedules. The dividend yield assumption is based on Intevac’s history of not paying dividends and the assumption of not paying dividends in the future. A summary of the stock option activity is as follows: Shares Weighted Weighted Average Aggregate Intrinsic Value Options outstanding at January 2, 2016 2,433,647 $ 7.52 4.10 $ 141,546 Options granted 422,500 $ 4.88 Options cancelled and forfeited (107,230 ) $ 10.69 Options exercised (8,553 ) $ 4.47 Options outstanding at December 31, 2016 2,740,364 $ 7.00 3.64 $ 5,837,900 Vested and expected to vest at December 31, 2016 2,624,994 $ 7.07 3.55 $ 5,476,403 Options exercisable at December 31, 2016 1,829,765 $ 7.73 2.74 $ 3,082,215 The total intrinsic value of options exercised during fiscal years 2016, 2015 and 2014 was $13,000, $65,000 and $496,000, respectively. At December 31, 2016, Intevac had $640,000 of total unrecognized compensation expense, net of estimated forfeitures, related to stock option plans that will be recognized over the weighted-average period of 1.17 years. The options outstanding and currently exercisable at December 31, 2016 were in the following exercise price ranges: Options Outstanding Options Exercisable Range of Exercise Prices Number of Outstanding Weighted Weighted Number Weighted $3.91 - —$ 1,023,311 4.88 $ 4.77 407,446 $ 4.54 $5.43 - $7.37 924,908 3.93 $ 6.61 660,729 $ 6.61 $7.38 - $20.10 792,145 1.71 $ 10.34 761,590 $ 10.42 $3.91 - $20.10 2,740,364 3.64 $ 7.00 1,829,765 $ 7.73 RSUs A summary of the RSU activity is as follows: Shares Weighted Weighted Average Aggregate Non-vested RSUs at January 2, 2016 553,584 $ 6.16 1.02 $ 2,607,381 Granted 768,527 $ 4.20 Vested (268,883 ) $ 6.46 Cancelled (103,773 ) $ 4.81 Non-vested RSUs at December 31, 2016 949,455 $ 4.64 1.04 $ 8,117,840 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. At December 31, 2016, Intevac had $1.4 million of total unrecognized compensation expense, net of estimated forfeitures, related to RSUs that will be recognized over the weighted-average period of 1.04 years. 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. Intevac granted 125,000 of such awards to certain executive officers in fiscal 2016. These awards have a derived service period of 2.8 years. The weighted-average assumptions used in the model are outlined in the following table. 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 The annual bonus for certain participants in the Company’s annual incentive plan for fiscal 2016 will be settled with RSUs with one year vesting issued in 2017. The Company accrued for the payment of bonuses at the expected company-wide payout percentage amount at December 31, 2016, 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. The Company recorded equity-based compensation expense related to the annual incentive plan of $490,000 in fiscal 2016. At December 31, 2016, Intevac had $566,000 of total unrecognized compensation expense, net of estimated forfeitures, related to the annual incentive plan that will be recognized over a remaining period of 1.15 years. The annual bonus for certain participants in the Company’s annual incentive plan for fiscal 2015 was settled with RSUs with one year vesting issued in 2016. The Company recorded equity-based compensation expense related to the annual incentive plan of $324,000 in fiscal 2015. In February 2016, the annual bonus for certain participants was settled with RSUs with one year vesting. Thirty-four 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. The annual bonus for certain participants in the Company’s annual incentive plan for fiscal 2014 was settled with RSUs with one year vesting issued in 2015. The Company recorded equity-based compensation expense related to the annual incentive plan of $554,000 in fiscal 2014. In February 2015, the annual bonus for certain participants was settled with RSUs with one year vesting. Twenty-nine 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. ESPP The fair value of the employee stock purchase right is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions: 2016 2015 2014 Stock Purchase Rights: Weighted-average fair value of grants per share $ 1.55 $ 2.14 $ 2.08 Expected volatility 39.22 % 43.45 % 44.00 % Risk free interest rate 0.75 % 0.45 % 0.11 % Expected term of purchase rights (in years) 1.87 1.36 0.69 Dividend yield None None None The expected life of purchase rights is the period of time remaining in the current offering period. The ESPP activity during fiscal 2016, 2015 and 2014 is as follows: 2016 2015 2014 (in thousands, except per share amounts) Shares purchased 384 374 444 Weighted-average purchase price per share $ 3.78 $ 3.90 $ 3.63 Aggregate intrinsic value of purchase rights exercised $ 514 $ 688 $ 1,444 As of December 31, 2016, Intevac had $277,000 of total unrecognized compensation expense, net of estimated forfeitures related to purchase rights that will be recognized over the weighted-average period of 0.56 years. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share | 3. Earnings Per Share Intevac calculates basic earnings per share (“EPS”) using net income (loss) and the weighted-average number of shares outstanding during the reporting period. Diluted EPS includes the effect from potential issuance of common stock pursuant to the exercise of employee stock options and vesting of RSUs. The following table sets forth the computation of basic and diluted loss per share: 2016 2015 2014 (in thousands, except per share amounts) Net loss $ (7,441 ) $ (9,166 ) $ (27,445 ) Weighted-average shares – basic 20,761 22,218 23,671 Effect of dilutive potential common shares — — — Weighted-average shares – diluted 20,761 22,218 23,671 Net loss per share – basic and diluted $ (0.36 ) $ (0.41 ) $ (1.16 ) As the Company is in a net loss position, all of the Company’s equity instruments are considered antidilutive. |
Concentrations
Concentrations | 12 Months Ended |
Dec. 31, 2016 | |
Concentrations | 4. Concentrations Credit Risk and Significant Customers Financial instruments that potentially subject the Company to significant concentrations of credit risk consist of cash equivalents, short- and long-term investments, restricted cash, and accounts receivable. Intevac generally invests its excess cash in money market funds, commercial paper, obligations of the U.S. government and its agencies, corporate debt securities and municipal bonds. The Company has adopted an investment policy and established guidelines relating to credit quality, diversification and maturities of its investments in order to preserve principal and maintain liquidity. All investment securities in Intevac’s portfolio have an investment grade credit rating. Intevac’s accounts receivable tend to be concentrated in a limited number of customers. The following customers accounted for at least 10 percent of Intevac’s accounts receivable at December 31, 2016 and January 2, 2016. 2016 2015 Seagate Technology 55 % * HGST 10 % 37 % Western Digital * 15 % U.S. Government * 11 % * Less than 10% Intevac’s largest customers tend to change from period to period. Historically, a significant portion of Intevac’s revenues in any particular period have been attributable to sales to a limited number of customers. Intevac performs credit evaluations of its customers’ financial condition and generally requires deposits on system orders but does not generally require collateral or other security to support customer receivables. The following customers accounted for at least 10 percent of Intevac’s consolidated net revenues in fiscal 2016, 2015, and/or 2014. 2016 2015 2014 Seagate Technology 34 % 22 % 15 % U.S. Government 22 % 26 % 32 % Elbit Systems of America 10 % * * HGST * 15 % 17 % * Less than 10% Products Disk manufacturing products contributed a significant portion of Intevac’s revenues in fiscal 2016, 2015, and 2014. Intevac expects that the ability to maintain or expand its current levels of revenues in the future will depend upon continuing market demand for its products; its success in enhancing its existing systems and developing and manufacturing competitive disk manufacturing equipment, such as the 200 Lean; its success in utilizing Intevac’s expertise in complex manufacturing equipment to develop and sell new equipment products for PV and DCP manufacturing and Intevac’s success in developing military products based on its low-light technology. |
Balance Sheet Details
Balance Sheet Details | 12 Months Ended |
Dec. 31, 2016 | |
Balance Sheet Details | 5. Balance Sheet Details Balance sheet details were as follows as of December 31, 2016 and January 2, 2016: Trade and Other Accounts Receivable, Net Receivables consisted of the following components: December 31, January 2, (in thousands) Trade receivables and other $ 15,167 $ 11,939 Unbilled costs and accrued profits 2,280 371 Less: allowance for doubtful accounts — — $ 17,447 $ 12,310 Inventories Inventories are stated at the lower of average cost or market and consist of the following: December 31, January 2, (in thousands) Raw materials $ 10,290 $ 11,081 Work-in-progress 6,470 4,365 Finished goods 8,116 3,314 $ 24,876 $ 18,760 Finished goods inventory consists primarily of completed systems at customer sites that are undergoing installation and acceptance testing. Property, Plant and Equipment December 31, January 2, (in thousands) Leasehold improvements $ 14,653 $ 15,242 Machinery and equipment 41,678 42,317 56,331 57,559 Less accumulated depreciation and amortization 45,094 45,638 Total property, plant and equipment, net $ 11,237 $ 11,921 Customer Advances Customer advances generally represent nonrefundable deposits invoiced by the Company in connection with receiving customer purchase orders and other events preceding acceptance of systems. Customer advances related to products that have not been shipped to customers and included in accounts receivable were $53,000 at December 31, 2016. Accounts Payable Included in accounts payable is $349,000 and $582,000 of book overdraft at December 31, 2016 and January 2, 2016, respectively. Other Accrued Liabilities December 31, January 2, (in thousands) Deferred revenue $ 14,416 $ 3,789 Accrued product warranties 829 835 Other taxes payable 660 378 Acquisition-related contingent consideration 329 179 Income taxes payable 246 234 Other 531 217 Total other accrued liabilities $ 17,011 $ 5,632 Other Long-Term Liabilities December 31, 2016 January 2, 2016 (in thousands) Deferred rent $ 2,392 $ 1,190 Acquisition-related contingent consideration 430 711 Accrued income taxes 82 363 Accrued product warranties 178 147 Total other long-term liabilities $ 3,082 $ 2,411 |
Purchased Intangible Assets, Ne
Purchased Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2016 | |
Purchased Intangible Assets, Net | 6. Purchased Intangible Assets, Net Information regarding acquisition-related intangible assets is as follows: December 31, 2016 January 2, 2016 Gross Accumulated Net Gross Accumulated Net (in thousands) Customer relationships $ 3,119 $ 2,869 $ 250 $ 3,119 $ 2,646 $ 473 Purchased technology 5,148 3,140 2,008 5,148 2,509 2,639 Covenants not to compete 40 40 — 40 40 — Backlog 80 80 — 80 80 — Total amortizable intangible assets $ 8,387 $ 6,129 $ 2,258 $ 8,387 $ 5,275 $ 3,112 Intangible assets by segment as of December 31, 2016 are as follows: Thin-film Equipment; $2.0 million and Photonics; $217,000. Total amortization expense of purchased intangibles for fiscal 2016, 2015 and 2014 was $854,000, $854,000, and $936,000 respectively. Estimated future amortization expense related to finite-lived purchased intangible assets as of December 31, 2016, is as follows. (in thousands) 2017 755 2018 615 2019 615 2020 273 $ 2,258 |
Contingent Consideration
Contingent Consideration | 12 Months Ended |
Dec. 31, 2016 | |
Contingent Consideration | 7. Contingent Consideration In connection with the acquisition of SIT, Intevac agreed to pay up to an aggregate of $7.0 million in cash to the selling shareholders if certain milestones were achieved over a specified period. Intevac has made payments to the selling shareholders for achievement of the first milestone in 2011, and for achievement of the second and third milestones in 2012. The fourth and final milestone was not achieved on the targeted date outlined in the acquisition agreement and will not be paid. There is no remaining contingent consideration obligation associated with the milestone agreement at December 31, 2016. In connection with the acquisition of SIT, Intevac also 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 December 31, 2016 based on probability-based forecasted revenues reflecting Intevac’s own assumptions concerning future revenue from such products. As of December 31, 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 observable in the market and thus represents a Level 3 measurement. The following table represents the quantitative range of the significant unobservable inputs used in the calculation of fair value of the contingent consideration liability as of December 31, 2016. Significant increases or decreases in any of these inputs even in isolation would result in a significantly lower (higher) fair value measurement. Quantitative Information about Level 3 Fair Value Measurements at December 31, 2016 Fair Value Valuation Technique Unobservable Input Range (in thousands, except for percentages) Revenue Earnout $759 Discounted cash flow Weighted-average cost of capital 15.3% Probability weighting of achieving revenue forecasts 10.0% - 80.0% (29.6%) Any change in fair value of the contingent consideration subsequent to the acquisition date is recognized in operating income 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 fiscal 2016, 2015 and 2014: 2016 2015 2014 (in thousands) Beginning balance $ 890 $ 1,134 $ 1,384 Changes in fair value (100 ) (244 ) (250 ) Cash payments made (31 ) — — Ending balance $ 759 $ 890 $ 1,134 |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Financial Instruments | 8. Financial Instruments Cash, Cash Equivalents and Investments Cash and cash equivalents, short-term investments and long-term investments consist of: December 31, 2016 Amortized Unrealized Unrealized Fair (in thousands) Cash and cash equivalents: Cash $ 18,726 $ — $ — $ 18,726 Money market funds 8,317 — — 8,317 Total cash and cash equivalents $ 27,043 $ — $ — $ 27,043 Short-term investments: Commercial paper $ 1,992 $ — $ 1 $ 1,991 Corporate bonds and medium-term notes 8,586 — 6 8,580 Municipal bonds 600 — — 600 U.S. treasury and agency securities 6,432 — 1 6,431 Total short-term investments $ 17,610 $ — $ 8 $ 17,602 Long-term investments: Corporate bonds and medium-term notes $ 2,510 $ — $ 11 $ 2,499 Municipal bonds 500 — 4 496 U.S. treasury and agency securities 597 1 — 598 Total long-term investments $ 3,607 $ 1 $ 15 $ 3,593 Total cash, cash equivalents, and investments $ 48,260 $ 1 $ 23 $ 48,238 January 2, 2016 Amortized Unrealized Unrealized Fair (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 December 31, 2016 are presented in the following table. Amortized Fair (in thousands) Due in one year or less $ 25,927 $ 25,919 Due after one through two years 3,607 3,593 $ 29,534 $ 29,512 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 December 31, 2016. December 31, 2016 In Loss Position for Less than 12 Months In Loss Position for Fair Gross Unrealized Fair Gross Unrealized (in thousands) Commercial paper $ 1,494 $ 1 $ — $ — Corporate bonds and medium-term notes 9,478 17 — — Municipal bonds 1,096 4 — — U.S. treasury and agency securities 2,932 1 — — $ 15,000 $ 23 $ — $ — 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 December 31, 2016. Fair Value Measurements at December 31, 2016 Total Level 1 Level 2 (in thousands) Recurring fair value measurements: Available-for-sale securities Money market funds $ 8,317 $ 8,317 $ — U.S. treasury and agency securities 7,029 4,097 2,932 Commercial paper 1,991 — 1,991 Corporate bonds and medium-term notes 11,079 — 11,079 Municipal bonds 1,096 — 1,096 Total recurring fair value measurements $ 29,512 $ 12,414 $ 17,098 Derivatives 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 maturities of approximately 30 days. The following table summarizes the Company’s outstanding derivative instruments on a gross basis as recorded in its consolidated balance sheets as of December 31, 2016 and January 2, 2016: Notional Amounts Derivative Assets Derivative Liabilities Derivative Instrument December 31, January 2, December 31, January 2, December 31, 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 $ 1,146 $ 924 (a) $ — (a) $ 1 (b) $ 8 (b) $ 4 Total Hedges $ 1,146 $ 924 $ — $ 1 $ 8 $ 4 (a) Prepaid expenses and other current assets (b) Other accrued liabilities |
Equity
Equity | 12 Months Ended |
Dec. 31, 2016 | |
Equity | 9. 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. Under this authorization, Intevac purchases shares of its common stock under a systematic stock repurchase program and may also make supplemental stock repurchases from time to time, depending on market conditions, stock price and other factors. On November 12, 2015, Intevac entered into a Share Repurchase Agreement with Northern Right Capital Management, L.P. and certain of its affiliated funds, including on behalf of a managed account (collectively, “NRC”), whereby Intevac repurchased 1,483,171 shares of its common stock (or approximately 6.8% of the outstanding common stock) from NRC in a privately negotiated transaction at a purchase price of $4.98 per share, for an aggregate purchase price of $7.4 million. The repurchase was made in conjunction with Intevac’s stock repurchase program. At December 31, 2016, $1.5 million remains available for future stock repurchases under the repurchase program. The following table summarizes Intevac’s stock repurchases for fiscal 2016, 2015 and 2014: 2016 2015 2014 (in thousands, except per share amounts) Shares of common stock repurchased — 3,419 1,185 Cost of stock repurchased $ — $ 18,503 $ 8,302 Average price paid per share $ — $ 5.39 $ 6.97 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. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes | 10. Income Taxes The provision for income taxes on loss from continuing operations for fiscal 2016, 2015 and 2014 consists of the following (in thousands): 2016 2015 2014 Federal: Current $ — $ — $ (324 ) Deferred — — — — — (324 ) State: Current 5 6 5 Deferred — — — 5 6 5 Foreign: Current 237 561 81 Deferred 9 (12 ) 8,666 246 549 8,747 Total $ 251 $ 555 $ 8,428 Income (loss) before income taxes for fiscal 2016, 2015 and 2014 consisted of the following (in thousands): 2016 2015 2014 U.S $ (8,703 ) $ (9,538 ) $ (13,191 ) Foreign 1,513 927 (5,826 ) $ (7,190 ) $ (8,611 ) $ (19,017 ) Effective tax rate (3.5 )% (6.4 )% (44.3 )% Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts for income tax purposes. Significant components of deferred tax assets are as follows (in thousands): December 31, January 2, Deferred tax assets: Vacation, warranty and other accruals $ 926 $ 898 Depreciation and amortization 600 814 Intangible amortization 2,060 2,397 Inventory valuation 3,091 3,321 Deferred income 29 750 Equity-based compensation 3,821 3,612 Net operating loss, research and other tax credit carryforwards 54,844 51,186 Other 918 481 66,289 63,459 Valuation allowance for deferred tax assets (65,189 ) (62,365 ) Total deferred tax assets 1,100 1,094 Deferred tax liabilities: Purchased technology (720 ) (950 ) Unbilled revenue (377 ) (132 ) Total deferred tax liabilities (1,097 ) (1,082 ) Net deferred tax assets $ 3 $ 12 As reported on the balance sheet: Current deferred tax assets $ — $ 12 Non-current deferred tax assets 3 — $ 3 $ 12 Intevac accounts for income taxes in accordance with accounting standards for such taxes, which requires that deferred tax assets and liabilities be recognized using enacted tax rates for the effect of temporary differences between the financial reporting and tax bases of recorded assets and liabilities. Accounting standards also require that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some portion of or all of the deferred tax asset will not be realized. Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. A significant element of objective negative evidence evaluated was the cumulative loss incurred over the three-year periods ended January 3, 2015, December 31, 2013 and December 31, 2012. Such objective evidence limits the ability to consider other subjective evidence such as Intevac’s projections for future growth. On the basis of this analysis and the significant negative objective evidence, for fiscal 2014, a valuation allowance of $9.4 million was added to record only the portion of the Singapore deferred tax asset that more likely than not will be realized. The Company recorded a valuation allowance decrease of $136,000 for fiscal 2016 and a valuation allowance increase of $631,000 for fiscal 2015, respectively, for the Singapore deferred tax asset. In fiscal 2012, a valuation allowance of $23.4 million was added to record only the portion of the U.S. federal deferred tax asset that more likely than not will be realized. For fiscal 2016, 2015, 2014 and 2013, valuation allowance increases of $3.3 million, $1.6 million, $4.7 million and $7.2 million, respectively for the U.S. federal deferred tax asset were recorded. A valuation allowance is recorded against the entire state deferred tax asset which consists of state income tax temporary differences and deferred research and other tax credits that are not realizable in the foreseeable future. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are reduced or increased, or if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence such as our projections for growth. As of December 31, 2016, our federal, foreign and state net operating loss carryforwards for income tax purposes were approximately $66.0 million, $60.3 million and $63.8 million, respectively. The federal and state net operating loss carryforwards are subject to various limitations under Section 382 of the Internal Revenue Code and applicable state tax laws. If not utilized, the federal net operating loss carryforwards and the state net operating loss carryforwards will begin to expire in 2028. The foreign net operating loss carryforwards do not expire. As of December 31, 2016, our federal and state tax credit carryforwards for income tax purposes were approximately $13.5 million and $13.4 million, respectively. If not utilized, the federal tax credit carryforwards will begin to expire in 2019 and the state tax credits carry forward indefinitely. The difference between the tax provision (benefit) at the statutory federal income tax rate and the tax provision (benefit) for fiscal 2016, 2015 and 2014 was as follows (in thousands): 2016 2015 2014 Income tax (benefit) at the federal statutory rate $ (2,517 ) $ (3,014 ) $ (6,656 ) State income taxes, net of federal benefit 5 6 5 Change in valuation allowance: U.S 3,333 1,625 4,733 Foreign (136 ) 631 9,394 Effect of foreign operations taxed at various rates (232 ) (140 ) 1,662 Research tax credits (1,058 ) (931 ) (569 ) Effect of tax rate changes, permanent differences and adjustments of prior deferrals 1,137 2,114 153 Unrecognized tax benefits (281 ) 264 (294 ) Total $ 251 $ 555 $ 8,428 Intevac has not provided for U.S. federal income and foreign withholding taxes on approximately $14.3 million of undistributed earnings from non-U.S. operations as of December 31, 2016 because Intevac intends to reinvest such earnings indefinitely outside of the United States. If Intevac were to distribute these earnings, foreign tax credits may become available under current law to reduce the resulting U.S. income tax liability. Determination of the amount of unrecognized deferred tax liability related to these earnings is not practicable. Intevac will remit the non-indefinitely reinvested earnings, if any, of Intevac’s non-U.S. subsidiaries where excess cash has accumulated and Intevac determines that it is advantageous for business operations, tax or cash reasons. The total amount of gross unrecognized tax benefits was $7.5 million as of December 31, 2016, of which $73,000 would affect Intevac’s effective tax rate if realized. The aggregate changes in the balance of gross unrecognized tax benefits were as follows for fiscal 2016, 2015 and 2014: 2016 2015 2014 (in thousands) Beginning balance $ 7,173 $ 6,578 $ 6,482 Additions based on tax positions related to the current year 652 574 57 Additions for tax positions of prior years — 21 250 Settlements (281 ) — — Lapse of statute of limitations — — (211 ) Ending balance $ 7,544 $ 7,173 $ 6,578 The Company does not anticipate any changes in the amount of unrecognized tax benefits in the next twelve months. It is Intevac’s policy to include interest and penalties related to unrecognized tax benefits in the provision for income taxes on the consolidated statements of operations. During fiscal 2016, 2015 and 2014, Intevac recognized a net tax expense (benefit) for interest of ($1,000), $2,000 and ($110,000), respectively. As of December 31, 2016 Intevac had $9,000 of accrued interest related to unrecognized tax benefits, which was classified as a long-term liability in the consolidated balance sheets. Intevac did not accrue any penalties related to these unrecognized tax benefits because Intevac has other tax attributes which would offset any potential taxes due. Intevac is subject to income taxes in the U.S. federal jurisdiction, and various state and foreign jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. The material jurisdictions where Intevac is subject to potential examination by tax authorities for tax years after 2009 include the U.S. (Federal and California) and Singapore. 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 fiscal 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 $871,000 and $1.4 million are included in other long-term assets at December 31, 2016 and January 2, 2016, respectively, on the 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. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Employee Benefit Plans | 11. Employee Benefit Plans Employee Savings and Retirement Plan In 1991, Intevac established a defined contribution retirement plan with 401(k) plan features. The plan covers all United States employees eighteen years and older. Employees may make contributions by a percentage reduction in their salaries, not to exceed the statutorily prescribed annual limit. Intevac made cash contributions of $310,000 for fiscal 2016. Intevac did not make any cash contributions for fiscal 2015 and fiscal 2014. Employees may choose among several investment options for their contributions and their share of Intevac’s contributions, and they are able to move funds between investment options at any time. Intevac’s common stock is not one of the investment options. Administrative expenses relating to the plan are insignificant. Employee Bonus Plans Intevac has various employee bonus plans. A profit-sharing plan provides for the distribution of a percentage of pre-tax profits to substantially all of Intevac’s employees not eligible for other performance-based incentive plans, up to a maximum percentage of compensation. Other plans award annual cash bonuses to Intevac’s executives and key contributors based on the achievement of profitability and other specific performance criteria. Charges to expense under these plans were $295,000, $219,000 and $22,000, respectively for fiscal 2016, 2015 and 2014. In fiscal 2016, 2015 and 2014, the annual bonus for certain participants in the Company’s annual incentive plan will be settled with RSUs with one year vesting. Charges for bonuses in the amount of $490,000, $324,000 and $554,000 for fiscal 2016, 2015 and 2014 were reported as stock compensation expense. In February 2016, the annual bonus for certain participants of the 2015 annual incentive plan was settled with RSUs with one year vesting Thirty-four 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 annual bonus for certain participants of the 2014 annual incentive plan was settled with RSUs with one year vesting. Twenty-nine 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. See Note 2 “Equity-Based Compensation.” |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies | 12. Commitments and Contingencies Leases Intevac leases certain facilities under non-cancelable operating leases that expire at various times up to March 2024 and has options to renew most leases, with rentals to be negotiated. Certain of Intevac’s leases contain provisions for rental adjustments. Included in other long-term liabilities on the consolidated balance sheet is $2.4 million of deferred rent as of December 31, 2016 related to the effective rent on Intevac’s long-term lease for Intevac’s Santa Clara, California facility. The terms of the Company’s lease of its Santa Clara, California facility include a tenant improvement allowance of up to $1.7 million. Tenant improvement allowances are reimbursements received from the landlord for construction costs and are amortized on a straight-line basis over the lease term as a reduction in rent. The tenant improvement allowances are recorded when the Company has completed its obligations and the tenant improvement allowance is receivable. In addition, Intevac is required to maintain a standby letter of credit for $1.0 million for this lease. This standby letter of credit is secured with $1.0 million of restricted cash. The facility leases require Intevac to pay for all normal maintenance costs. Gross rental expense was approximately $3.8 million, $4.0 million and $3.8 million for fiscal 2016, 2015, and 2014, respectively. As of December 31, 2016, future minimum lease payments are as follows. (in thousands) 2017 $ 2,824 2018 2,783 2019 2,859 2020 2,790 2021 2,874 Thereafter 6,777 $ 20,907 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 judgment 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 December 31, 2016, we had letters of credit and bank guarantees outstanding totaling $1.6 million, including the standby letter of credit outstanding under the Santa Clara, California facility lease and various other guarantees with its bank. These letters of credit and bank guarantees are collateralized by $1.6 million of restricted cash. Warranty Intevac provides for the estimated cost of warranty when revenue is recognized. Intevac’s warranty is per contract terms and for its hard disk drive, PV and DCP manufacturing systems the warranty typically ranges between 12 and 24 months from customer acceptance. For systems sold through a distributor, Intevac offers a 3 month warranty. The remainder of any warranty period is the responsibility of the distributor. During this warranty period any defective non-consumable parts are replaced and installed at no charge to the customer. The warranty period on consumable parts is limited to their reasonable usable lives. Intevac uses estimated repair or replacement costs along with its historical warranty experience to determine its warranty obligation. Intevac generally provides a twelve month warranty on its Photonics’ products. The provision for the estimated future costs of warranty is based upon historical cost and product performance experience. Intevac exercises judgment in determining the underlying estimates. On the 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 consolidated statements of operations. The following table displays the activity in the warranty provision account for fiscal 2016 and 2015: 2016 2015 (in thousands) Beginning balance $ 982 $ 1,186 Expenditures incurred under warranties (488 ) (463 ) Accruals for product warranties 943 837 Adjustments to previously existing warranty accruals (430 ) (578 ) Ending balance $ 1,007 $ 982 Legal Matters From time to time, Intevac receives notification from third parties, including customers and suppliers, seeking indemnification, litigation support, payment of money or other actions in connection with claims made against them. In addition, from time to time, Intevac receives notification from third parties claiming that Intevac may be or is infringing their intellectual property or other rights. Intevac also is subject to various other legal proceedings and claims, both asserted and unasserted, that arise in the ordinary course of business. Although the outcome of these claims and proceedings cannot be predicted with certainty, Intevac does not believe that any of these other existing proceedings or claims will have a material adverse effect on its consolidated financial condition or results of operations. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment and Geographic Information | 13. Segment and Geographic Information Intevac’s two reportable segments are: Thin-film Equipment and Photonics. 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 December 31, 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 fiscal 2016, 2015 and 2014 is as follows: 2016 2015 2014 (in thousands) Net Revenues Thin-film Equipment $ 45,253 $ 39,622 $ 25,290 Photonics 34,871 35,538 40,260 Total segment net revenues $ 80,124 $ 75,160 $ 65,550 2016 2015 2014 (in thousands) Operating Profit (Loss) Thin-film Equipment $ (8,309 ) $ (9,345 ) $ (22,008 ) Photonics 5,813 5,206 8,932 Total segment operating profit (loss) (2,496 ) (4,139 ) (13,076 ) Unallocated costs (5,067 ) (4,599 ) (6,278 ) Operating loss (7,563 ) (8,738 ) (19,354 ) Interest income 195 179 179 Other income (expense), net 178 (52 ) 158 Loss before income taxes $ (7,190 ) $ (8,611 ) $ (19,017 ) 2016 2015 2014 (in thousands) Depreciation and Amortization Thin-film Equipment $ 2,710 $ 2,443 $ 2,379 Photonics 1,736 1,737 1,834 Total segment depreciation and amortization 4,446 4,180 4,213 Unallocated costs 391 417 492 Total consolidated depreciation and amortization $ 4,837 $ 4,597 $ 4,705 2016 2015 2014 (in thousands) Capital Additions Thin-film Equipment $ 700 $ 1,433 $ 2,230 Photonics 2,463 749 1,203 Total segment capital additions 3,163 2,182 3,433 Unallocated 210 935 272 Total consolidated capital additions $ 3,373 $ 3,117 $ 3,705 2016 2015 (in thousands) Segment Assets Thin-film Equipment $ 39,503 $ 29,528 Photonics 16,071 16,029 Total segment assets 55,574 45,557 Cash and investments 48,238 46,627 Restricted cash 1,602 1,780 Deferred income taxes 3 12 Other current assets 997 1,052 Common property, plant and equipment 1,039 1,218 Other assets 871 1,435 Consolidated total assets $ 108,324 $ 97,681 Geographic revenue information for fiscal 2016, 2015 and 2014 is based on the location of the customer. Revenue from unaffiliated customers by geographic region/country was as follows: 2016 2015 2014 (in thousands) United States $ 42,048 $ 49,034 $ 51,584 Asia (*) 37,143 23,855 9,931 Europe 933 2,271 4,035 Total net revenues $ 80,124 $ 75,160 $ 65,550 (*) Revenues are attributable to the geographic area in which Intevac’s customers are located. Net trade revenues in Asia include shipments to Singapore, China, Japan and Malaysia. Net property, plant and equipment by geographic region at December 31 2016 and January 2, 2016 was as follows: December 31, January 2, 2016 2016 (in thousands) United States $ 11,148 $ 10,990 Asia 89 931 Net property, plant & equipment $ 11,237 $ 11,921 |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring Charges | 14. Restructuring Charges During the first quarter of fiscal 2015, Intevac substantially completed implementation of the 2015 cost reduction plan (the “2015 Plan”), which reduced expenses and reduced its workforce by 3 percent. The cost of implementing the 2015 Plan was reported under cost of net revenues and operating expenses in the consolidated statements of operations. Substantially all cash outlays in connection with the 2015 Plan occurred in the first quarter of fiscal 2015. Implementation of the 2015 Plan reduced salary, wages and other employee-related expenses by approximately $1.4 million on an annual basis. During the first half of fiscal 2014, Intevac substantially completed implementation of the 2014 cost reduction plan (the “2014 Plan”), which reduced expenses and reduced its workforce by 6 percent. The cost of implementing the 2014 Plan was reported under cost of net revenues and operating expenses in the consolidated statements of operations. Substantially all cash outlays in connection with the 2014 Plan occurred in the first half of fiscal 2014. Implementation of the 2014 Plan reduced salary, wages and other employee-related expenses by approximately $2.1 million on an annual basis. As of December 31, 2016, activities related to the 2015 and 2014 Plans were complete. The changes in restructuring reserves associated with the cost reduction plans for fiscal 2015 and 2014, are as follows. Severance and 2015 2014 (in thousands) Balance at the beginning of the year $ — $ — Provision for restructuring charges 148 288 Cash payments made (148 ) (288 ) Balance at the end of the year $ — $ — |
Related Party Transaction
Related Party Transaction | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transaction | 15. Related Party Transaction On November 12, 2015, Intevac entered into a Share Repurchase Agreement with Northern Right Capital Management, L.P. and certain of its affiliated funds, including on behalf of a managed account (collectively, “NRC”), whereby Intevac repurchased 1,483,171 shares of its common stock (or approximately 6.8% of the outstanding common stock) from NRC in a privately negotiated transaction at a purchase price of $4.98 per share, for an aggregate purchase price of $7.4 million. The repurchase was made in conjunction with Intevac’s stock repurchase program. Matthew Drapkin, a member of Intevac’s Board of Directors, is a principal of NRC and a member of BC Advisors, LLC, which is the general partner of NRC. NRC continues to beneficially own approximately 3.6% of the outstanding shares of Intevac’s common stock subsequent to the transaction. |
Selected Quarterly Consolidated
Selected Quarterly Consolidated Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Selected Quarterly Consolidated Financial Data (Unaudited) | 16. Selected Quarterly Consolidated Financial Data (Unaudited) Three Months Ended Apr. 2, 2016 July 2, 2016 Oct. 1, 2016 Dec. 31, 2016 (in thousands, except per share data) Net sales $ 13,664 $ 14,918 $ 22,559 $ 28,982 Gross profit 3,856 6,127 8,515 11,912 Net income (loss) (6,305 ) (3,490 ) (481 ) 2,835 Basic net income (loss) per share $ (0.31 ) $ (0.17 ) $ (0.02 ) $ 0.14 Diluted net income (loss) per share $ (0.31 ) $ (0.17 ) $ (0.02 ) $ 0.13 Three Months Ended Apr. 4, 2015 July 4, 2015 Oct. 3, 2015 Jan. 2, 2016 (in thousands, except per share data) Net sales $ 19,885 $ 20,458 $ 18,418 $ 16,398 Gross profit 6,922 7,806 4,912 6,677 Net income (loss) (2,893 ) 12 (3,759 ) (2,526 ) Basic and diluted net income (loss) per share $ (0.12 ) $ — $ (0.17 ) $ (0.12 ) |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of Intevac, Inc. and its subsidiaries (Intevac or the Company) after elimination of inter-company balances and transactions. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. |
Change in Fiscal Year End-Date | Change in Fiscal Year End Date On February 19, 2014, the Board of Directors of the Company approved the Company’s change to a 52-53 week fiscal year ending on the Saturday nearest to December 31 of each year in order to improve the alignment of financial and business processes and to streamline financial reporting. Each fiscal quarter consists of 13 weeks, with an occasional fourth quarter extending to 14 weeks, if necessary, for the fiscal year to end on the Saturday nearest to December 31. The Company’s fiscal 2016, fiscal 2015 and fiscal 2014 years ended on December 31, 2016, January 2, 2016 and on January 3, 2015, respectively. |
Cash, Cash Equivalents and Investments | Cash, Cash Equivalents and Investments Intevac considers all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents. Available-for-sale securities, comprised of commercial paper, obligations of the U.S. government and its agencies, corporate debt securities and municipal bonds, are carried at fair value, with unrealized gains and losses recorded within other comprehensive income (loss) as a separate component of stockholders’ equity. Realized gains and losses and declines in value judged to be other than temporary, if any, on available-for-sale securities are included in earnings. Purchases and sales of investment securities are recognized on a trade date basis. The cost of investment securities sold is determined by the specific identification method. |
Restricted Cash | Restricted Cash Restricted cash of $1.0 million as of December 31, 2016 secures a standby letter of credit obligation associated with a lease obligation and the restriction on the cash will be removed when the letter of credit expires. In addition Intevac pledged $602,000 as collateral for various guarantees with its bank. |
Derivative Instruments and Hedging Arrangements | Derivative Instruments and Hedging Arrangements Foreign Exchange Exposure Management |
Fair Value Measurement-Definition and Hierarchy | Fair Value Measurement—Definition and Hierarchy Intevac reports certain financial assets and liabilities at fair value. Intevac defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are classified and disclosed in one of the following three categories: Level 1 Level 2 Level 3 |
Trade Accounts Receivables and Doubtful Accounts | Trade Accounts Receivables and Doubtful Accounts Intevac evaluates the collectibility of trade accounts receivable on an ongoing basis and provides reserves against potential losses when appropriate. Management analyzes historical bad debts, customer concentrations, customer creditworthiness, changes in customer payment tendencies and current economic trends when evaluating the adequacy of the allowance for doubtful accounts. Customer accounts are written off against the allowance when the amount is deemed uncollectible. |
Inventories | Inventories Inventories are generally stated at the lower of cost or market, with cost determined on an average cost basis. |
Property, Plant and Equipment | Property, Plant and Equipment Equipment and leasehold improvements are stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets as follows: computers and software, 3 years; machinery and equipment, 5 years; furniture, 7 years; vehicles, 4 years; and leasehold improvements, remaining lease term. |
Contingent Consideration and Purchased Intangible Assets | Contingent Consideration and Purchased Intangible Assets Contingent consideration related to a business combination is recorded at the acquisition date at the estimated fair value of the contingent payments. The acquisition date fair value is measured based on the consideration expected to be transferred (probability-weighted), discounted back to present value. The discount rate used is determined at the time of the acquisition in accordance with accepted valuation methods. The fair value of the acquisition-related contingent consideration is remeasured at the estimated fair value at each reporting period with the change in fair value recognized as income or expense in the consolidated statements of operations. Purchased intangible assets other than goodwill are amortized over their useful lives unless these lives are determined to be indefinite. Purchased intangible assets are carried at cost, less accumulated amortization. Amortization is computed over the estimated useful lives of the respective assets, generally one to thirteen years using the straight line method. In 2012, as a result of its impairment analysis, Intevac wrote off all of the goodwill in both its Thin-film Equipment and Photonics reporting units. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets and certain identifiable finite-lived intangible assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability of long-lived assets is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. Measurement of an impairment loss for long-lived assets and certain identifiable intangible assets that management expects to hold and use is based on the fair value of the asset. When an impairment loss is recognized, the carrying amount of the asset is reduced to its estimated fair value. No impairment charges were recognized in fiscal 2016, 2015 and 2014. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recognized using enacted tax rates for the effect of temporary differences between book and tax bases of recorded assets and liabilities. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that a portion of the deferred tax asset will not be realized. On a quarterly basis, Intevac provides for income taxes based upon an annual effective income tax rate. The effective tax rate is highly dependent upon 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. Intevac carefully monitors the changes in many factors and adjust its effective income tax rate on a timely basis. If actual results differ from the estimates, this could have a material effect on Intevac’s business, financial condition and results of operations. The calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of complex tax laws. Resolution of these uncertainties in a manner inconsistent with Intevac’s expectations could have a material effect on Intevac’s business, financial condition and results of operations. Intevac recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes. |
Sales and Value Added Taxes | Sales and Value Added Taxes Taxes collected from customers and remitted to governmental authorities are presented on a net basis in the accompanying consolidated statements of operations. |
Revenue Recognition | Revenue Recognition Intevac recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred and title and risk of loss have passed to Intevac’s customer or services have been rendered, the price is fixed or determinable, and collectibility is reasonably assured. Intevac’s shipping terms are customarily FOB shipping point or equivalent terms. Intevac’s revenue recognition policy generally results in revenue recognition at the following points: (1) for all transactions where legal title passes to the customer upon shipment, Intevac recognizes revenue upon shipment for all products that have been demonstrated to meet product specifications prior to shipment; the portion of revenue associated with certain installation-related tasks is deferred, and that revenue is recognized upon completion of the installation-related tasks; (2) for products that have not been demonstrated to meet product specifications prior to shipment, revenue is recognized at customer acceptance; and (3) for arrangements containing multiple elements, the revenue relating to the undelivered elements is deferred until delivery of the deferred elements. When a sales arrangement contains multiple elements, Intevac allocates revenue to each element based on a selling price hierarchy. The selling price for a deliverable is based on its VSOE if available, TPE if VSOE is not available, or best ESP if neither VSOE nor TPE is available. Intevac generally utilizes the ESP due to the nature of its products. In certain cases, technology upgrade sales are accounted for as multiple-element arrangements, usually split between delivery of the parts and installation on the customer’s systems. In these cases, Intevac recognizes revenue for the relative sales price of the parts upon shipment and transfer of title, and recognizes revenue for the relative sales price of installation services when those services are completed. Revenue related to sales of spare parts is generally recognized upon shipment. Intevac recognizes revenue in certain circumstances before delivery has occurred (commonly referred to as bill and hold transactions). In such circumstances, among other things, risk of ownership has passed to the customer, the customer has made a written fixed commitment to purchase the finished goods, the customer has requested the finished goods be held for future delivery as scheduled and designated by them, and no additional performance obligations exist by Intevac. For these transactions, the finished goods are segregated from inventory and normal billing and credit terms granted. Revenue related to services is generally recognized upon completion of the services. In addition, Intevac uses the installment method to record revenue based on cash receipts in situations where the account receivable is collected over an extended period of time and in management’s judgment the degree of collectibility is uncertain. Intevac performs research and development work under various government-sponsored research contracts. Revenue on cost-plus-fee contracts is recognized to the extent of costs actually incurred plus a proportionate amount of the fee earned. Intevac considers fixed fees under cost-plus-fee contracts to be earned in proportion to the allowable costs actually incurred in performance of the contract. Revenue on fixed-price contracts is recognized on a milestone method or percentage-of-completion method of contract accounting. For contracts structured as milestone agreements, revenue is recognized when a specified milestone is achieved, provided that (1) the milestone event is substantive in nature and there is substantial uncertainty about the achievement of the milestone at the inception of the agreement, (2) the milestone payment is non-refundable, and (3) there is no continuing performance obligations associated with the milestone payment. Any milestone payments received prior to satisfying these revenue recognition criteria are deferred. Intevac generally determines the percentage completed based on the percentage of costs incurred to date in relation to total estimated costs expected through completion of the contract. When estimates of total costs to be incurred on a contract exceed estimates of total revenue to be earned, a provision for the entire loss on the contract is recorded in the period the loss is determined. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred. Advertising costs were not material for all periods presented. |
Foreign Currency Translation | Foreign Currency Translation The functional currency of Intevac’s foreign subsidiaries in Singapore and Hong Kong and the Taiwan branch is the U.S. dollar. The functional currency of Intevac’s foreign subsidiaries in China, Malaysia and Korea is the local currency of the country in which the respective subsidiary operates. Assets and liabilities recorded in foreign currencies are translated at year-end exchange rates; revenues and expenses are translated at average exchange rates during the year. The effect of foreign currency translation adjustments are included in stockholders’ equity as a component of accumulated other comprehensive income in the accompanying consolidated balance sheets. The effects of foreign currency transactions are included in other income in the determination of net loss. Net income (losses) from foreign currency transactions were ($99,000), $80,000, and $11,000 in 2016, 2015 and 2014, respectively. |
Comprehensive Income | Comprehensive Income The changes in accumulated other comprehensive income by component, were as follows for the years ended December 31, 2016 and January 2, 2016: Foreign Unrealized Total (in thousands) Balance at January 3, 2015 $ 620 $ (1 ) $ 619 Other comprehensive loss before reclassification (168 ) (39 ) (207 ) Amounts reclassified from other comprehensive income — — — Net current-period other comprehensive loss (168 ) (39 ) (207 ) Balance at January 2, 2016 $ 452 $ (40 ) $ 412 Other comprehensive loss before reclassification (109 ) 18 (91 ) Amounts reclassified from other comprehensive income — — — Net current-period other comprehensive loss (109 ) 18 (91 ) Balance at December 31, 2016 $ 343 $ (22 ) $ 321 |
Employee Stock Plans | Employee Stock Plans Intevac has equity-based compensation plans that provide for the grant to employees of equity-based awards, including incentive or non-statutory stock options, restricted stock, stock appreciation rights, restricted stock units (“RSUs”), performance units and performance bonus awards. In addition, these plans provide for the grant of non-statutory stock options and RSUs to non-employee directors and consultants. Intevac also has an employee stock purchase plan, which provides Intevac’s employees with the opportunity to purchase Intevac common stock at a discount through payroll deductions. See Note 2 for a complete description of these plans and their accounting treatment. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-11, Inventory (Topic 330), Simplifying the Measurement of Inventory In May 2014, the FASB issued ASU 2014-09 Revenue from Contracts with Customers (Topic 606) 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 February 2016, the 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) 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 In October 2016, the FASB issued ASU 2016-17, Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805) Clarifying the Definition of a Business |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Changes in Accumulated Other Comprehensive Income by Component | The changes in accumulated other comprehensive income by component, were as follows for the years ended December 31, 2016 and January 2, 2016: Foreign Unrealized Total (in thousands) Balance at January 3, 2015 $ 620 $ (1 ) $ 619 Other comprehensive loss before reclassification (168 ) (39 ) (207 ) Amounts reclassified from other comprehensive income — — — Net current-period other comprehensive loss (168 ) (39 ) (207 ) Balance at January 2, 2016 $ 452 $ (40 ) $ 412 Other comprehensive loss before reclassification (109 ) 18 (91 ) Amounts reclassified from other comprehensive income — — — Net current-period other comprehensive loss (109 ) 18 (91 ) Balance at December 31, 2016 $ 343 $ (22 ) $ 321 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Effect of Recording Equity-Based Compensation | The effect of recording equity-based compensation for fiscal 2016, 2015 and 2014 was as follows (in thousands): 2016 2015 2014 Equity-based compensation by type of award: Stock options $ 880 $ 963 $ 1,094 RSUs 2,190 1,711 1,464 Employee stock purchase plan 674 946 442 Total equity-based compensation $ 3,744 $ 3,620 $ 3,000 |
Employee Stock Options Weighted-Average Assumptions | The weighted-average assumptions used in the model are outlined in the following table: 2016 2015 2014 Stock Options: Weighted-average fair value of grants per share $ 1.76 $ 2.05 $ 3.15 Expected volatility 43.86 % 46.12 % 52.12 % Risk free interest rate 0.97 % 1.42 % 1.39 % Expected term of options (in years) 4.28 3.99 4.38 Dividend yield None None None |
Option Activity and Changes | A summary of the stock option activity is as follows: Shares Weighted Weighted Average Aggregate Intrinsic Value Options outstanding at January 2, 2016 2,433,647 $ 7.52 4.10 $ 141,546 Options granted 422,500 $ 4.88 Options cancelled and forfeited (107,230 ) $ 10.69 Options exercised (8,553 ) $ 4.47 Options outstanding at December 31, 2016 2,740,364 $ 7.00 3.64 $ 5,837,900 Vested and expected to vest at December 31, 2016 2,624,994 $ 7.07 3.55 $ 5,476,403 Options exercisable at December 31, 2016 1,829,765 $ 7.73 2.74 $ 3,082,215 |
Options Outstanding and Currently Exercisable | The options outstanding and currently exercisable at December 31, 2016 were in the following exercise price ranges: Options Outstanding Options Exercisable Range of Exercise Prices Number of Outstanding Weighted Weighted Number Weighted $3.91 - —$ 1,023,311 4.88 $ 4.77 407,446 $ 4.54 $5.43 - $7.37 924,908 3.93 $ 6.61 660,729 $ 6.61 $7.38 - $20.10 792,145 1.71 $ 10.34 761,590 $ 10.42 $3.91 - $20.10 2,740,364 3.64 $ 7.00 1,829,765 $ 7.73 |
Summary of Restricted Stock Units Activity | A summary of the RSU activity is as follows: Shares Weighted Weighted Average Aggregate Non-vested RSUs at January 2, 2016 553,584 $ 6.16 1.02 $ 2,607,381 Granted 768,527 $ 4.20 Vested (268,883 ) $ 6.46 Cancelled (103,773 ) $ 4.81 Non-vested RSUs at December 31, 2016 949,455 $ 4.64 1.04 $ 8,117,840 |
Weighted Average Fair Value of Market Condition Based RSUs | The weighted-average assumptions used in the model are outlined in the following table. 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 |
Employee Stock Purchase Rights Weighted-Average Assumptions | The fair value of the employee stock purchase right is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions: 2016 2015 2014 Stock Purchase Rights: Weighted-average fair value of grants per share $ 1.55 $ 2.14 $ 2.08 Expected volatility 39.22 % 43.45 % 44.00 % Risk free interest rate 0.75 % 0.45 % 0.11 % Expected term of purchase rights (in years) 1.87 1.36 0.69 Dividend yield None None None |
Employee Stock Purchase Plan Activity | The ESPP activity during fiscal 2016, 2015 and 2014 is as follows: 2016 2015 2014 (in thousands, except per share amounts) Shares purchased 384 374 444 Weighted-average purchase price per share $ 3.78 $ 3.90 $ 3.63 Aggregate intrinsic value of purchase rights exercised $ 514 $ 688 $ 1,444 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Computation of Basic and Diluted Loss Per Share | The following table sets forth the computation of basic and diluted loss per share: 2016 2015 2014 (in thousands, except per share amounts) Net loss $ (7,441 ) $ (9,166 ) $ (27,445 ) Weighted-average shares – basic 20,761 22,218 23,671 Effect of dilutive potential common shares — — — Weighted-average shares – diluted 20,761 22,218 23,671 Net loss per share – basic and diluted $ (0.36 ) $ (0.41 ) $ (1.16 ) |
Concentrations (Tables)
Concentrations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounts Receivable | |
Customers that Accounted for at Least Ten percent of Accounts Receivable/Consolidated Net Revenues | The following customers accounted for at least 10 percent of Intevac’s accounts receivable at December 31, 2016 and January 2, 2016. 2016 2015 Seagate Technology 55 % * HGST 10 % 37 % Western Digital * 15 % U.S. Government * 11 % * Less than 10% |
Sales Revenue Net | |
Customers that Accounted for at Least Ten percent of Accounts Receivable/Consolidated Net Revenues | The following customers accounted for at least 10 percent of Intevac’s consolidated net revenues in fiscal 2016, 2015, and/or 2014. 2016 2015 2014 Seagate Technology 34 % 22 % 15 % U.S. Government 22 % 26 % 32 % Elbit Systems of America 10 % * * HGST * 15 % 17 % * Less than 10% |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Components of Receivables | Receivables consisted of the following components: December 31, January 2, (in thousands) Trade receivables and other $ 15,167 $ 11,939 Unbilled costs and accrued profits 2,280 371 Less: allowance for doubtful accounts — — $ 17,447 $ 12,310 |
Summary of Inventories | Inventories are stated at the lower of average cost or market and consist of the following: December 31, January 2, (in thousands) Raw materials $ 10,290 $ 11,081 Work-in-progress 6,470 4,365 Finished goods 8,116 3,314 $ 24,876 $ 18,760 |
Property Plant and Equipment | Property, Plant and Equipment December 31, January 2, (in thousands) Leasehold improvements $ 14,653 $ 15,242 Machinery and equipment 41,678 42,317 56,331 57,559 Less accumulated depreciation and amortization 45,094 45,638 Total property, plant and equipment, net $ 11,237 $ 11,921 |
Other Accrued Liabilities | Other Accrued Liabilities December 31, January 2, (in thousands) Deferred revenue $ 14,416 $ 3,789 Accrued product warranties 829 835 Other taxes payable 660 378 Acquisition-related contingent consideration 329 179 Income taxes payable 246 234 Other 531 217 Total other accrued liabilities $ 17,011 $ 5,632 |
Other Long Term Liabilities | Other Long-Term Liabilities December 31, 2016 January 2, 2016 (in thousands) Deferred rent $ 2,392 $ 1,190 Acquisition-related contingent consideration 430 711 Accrued income taxes 82 363 Accrued product warranties 178 147 Total other long-term liabilities $ 3,082 $ 2,411 |
Purchased Intangible Assets, 30
Purchased Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Information Regarding Other Acquisition Related Intangible Assets | Information regarding acquisition-related intangible assets is as follows: December 31, 2016 January 2, 2016 Gross Accumulated Net Gross Accumulated Net (in thousands) Customer relationships $ 3,119 $ 2,869 $ 250 $ 3,119 $ 2,646 $ 473 Purchased technology 5,148 3,140 2,008 5,148 2,509 2,639 Covenants not to compete 40 40 — 40 40 — Backlog 80 80 — 80 80 — Total amortizable intangible assets $ 8,387 $ 6,129 $ 2,258 $ 8,387 $ 5,275 $ 3,112 |
Estimated Future Amortization Expense Related to Finite-Lived Purchased Intangible Assets | Estimated future amortization expense related to finite-lived purchased intangible assets as of December 31, 2016, is as follows. (in thousands) 2017 755 2018 615 2019 615 2020 273 $ 2,258 |
Contingent Consideration (Table
Contingent Consideration (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 contingent consideration liability as of December 31, 2016. Significant increases or decreases in any of these inputs even in isolation would result in a significantly lower (higher) fair value measurement. Quantitative Information about Level 3 Fair Value Measurements at December 31, 2016 Fair Value Valuation Technique Unobservable Input Range (in thousands, except for percentages) Revenue Earnout $759 Discounted cash flow Weighted-average cost of capital 15.3% Probability weighting of achieving revenue forecasts 10.0% - 80.0% (29.6%) |
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 fiscal 2016, 2015 and 2014: 2016 2015 2014 (in thousands) Beginning balance $ 890 $ 1,134 $ 1,384 Changes in fair value (100 ) (244 ) (250 ) Cash payments made (31 ) — — Ending balance $ 759 $ 890 $ 1,134 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 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: December 31, 2016 Amortized Unrealized Unrealized Fair (in thousands) Cash and cash equivalents: Cash $ 18,726 $ — $ — $ 18,726 Money market funds 8,317 — — 8,317 Total cash and cash equivalents $ 27,043 $ — $ — $ 27,043 Short-term investments: Commercial paper $ 1,992 $ — $ 1 $ 1,991 Corporate bonds and medium-term notes 8,586 — 6 8,580 Municipal bonds 600 — — 600 U.S. treasury and agency securities 6,432 — 1 6,431 Total short-term investments $ 17,610 $ — $ 8 $ 17,602 Long-term investments: Corporate bonds and medium-term notes $ 2,510 $ — $ 11 $ 2,499 Municipal bonds 500 — 4 496 U.S. treasury and agency securities 597 1 — 598 Total long-term investments $ 3,607 $ 1 $ 15 $ 3,593 Total cash, cash equivalents, and investments $ 48,260 $ 1 $ 23 $ 48,238 January 2, 2016 Amortized Unrealized Unrealized Fair (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 December 31, 2016 are presented in the following table. Amortized Fair (in thousands) Due in one year or less $ 25,927 $ 25,919 Due after one through two years 3,607 3,593 $ 29,534 $ 29,512 |
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 December 31, 2016. December 31, 2016 In Loss Position for Less than 12 Months In Loss Position for Fair Gross Unrealized Fair Gross Unrealized (in thousands) Commercial paper $ 1,494 $ 1 $ — $ — Corporate bonds and medium-term notes 9,478 17 — — Municipal bonds 1,096 4 — — U.S. treasury and agency securities 2,932 1 — — $ 15,000 $ 23 $ — $ — |
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 December 31, 2016. Fair Value Measurements at December 31, 2016 Total Level 1 Level 2 (in thousands) Recurring fair value measurements: Available-for-sale securities Money market funds $ 8,317 $ 8,317 $ — U.S. treasury and agency securities 7,029 4,097 2,932 Commercial paper 1,991 — 1,991 Corporate bonds and medium-term notes 11,079 — 11,079 Municipal bonds 1,096 — 1,096 Total recurring fair value measurements $ 29,512 $ 12,414 $ 17,098 |
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 consolidated balance sheets as of December 31, 2016 and January 2, 2016: Notional Amounts Derivative Assets Derivative Liabilities Derivative Instrument December 31, January 2, December 31, January 2, December 31, 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 $ 1,146 $ 924 (a) $ — (a) $ 1 (b) $ 8 (b) $ 4 Total Hedges $ 1,146 $ 924 $ — $ 1 $ 8 $ 4 (a) Prepaid expenses and other current assets (b) Other accrued liabilities |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stock Repurchases | The following table summarizes Intevac’s stock repurchases for fiscal 2016, 2015 and 2014: 2016 2015 2014 (in thousands, except per share amounts) Shares of common stock repurchased — 3,419 1,185 Cost of stock repurchased $ — $ 18,503 $ 8,302 Average price paid per share $ — $ 5.39 $ 6.97 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Provision for Income Taxes | The provision for income taxes on loss from continuing operations for fiscal 2016, 2015 and 2014 consists of the following (in thousands): 2016 2015 2014 Federal: Current $ — $ — $ (324 ) Deferred — — — — — (324 ) State: Current 5 6 5 Deferred — — — 5 6 5 Foreign: Current 237 561 81 Deferred 9 (12 ) 8,666 246 549 8,747 Total $ 251 $ 555 $ 8,428 |
Income (Loss) Before Income Taxes | Income (loss) before income taxes for fiscal 2016, 2015 and 2014 consisted of the following (in thousands): 2016 2015 2014 U.S $ (8,703 ) $ (9,538 ) $ (13,191 ) Foreign 1,513 927 (5,826 ) $ (7,190 ) $ (8,611 ) $ (19,017 ) Effective tax rate (3.5 )% (6.4 )% (44.3 )% |
Significant Components of Deferred Tax Assets | Significant components of deferred tax assets are as follows (in thousands): December 31, January 2, Deferred tax assets: Vacation, warranty and other accruals $ 926 $ 898 Depreciation and amortization 600 814 Intangible amortization 2,060 2,397 Inventory valuation 3,091 3,321 Deferred income 29 750 Equity-based compensation 3,821 3,612 Net operating loss, research and other tax credit carryforwards 54,844 51,186 Other 918 481 66,289 63,459 Valuation allowance for deferred tax assets (65,189 ) (62,365 ) Total deferred tax assets 1,100 1,094 Deferred tax liabilities: Purchased technology (720 ) (950 ) Unbilled revenue (377 ) (132 ) Total deferred tax liabilities (1,097 ) (1,082 ) Net deferred tax assets $ 3 $ 12 As reported on the balance sheet: Current deferred tax assets $ — $ 12 Non-current deferred tax assets 3 — $ 3 $ 12 |
Difference Between Tax Provision (Benefit) at Statutory Federal Income Tax Rate and Tax Provision | The difference between the tax provision (benefit) at the statutory federal income tax rate and the tax provision (benefit) for fiscal 2016, 2015 and 2014 was as follows (in thousands): 2016 2015 2014 Income tax (benefit) at the federal statutory rate $ (2,517 ) $ (3,014 ) $ (6,656 ) State income taxes, net of federal benefit 5 6 5 Change in valuation allowance: U.S 3,333 1,625 4,733 Foreign (136 ) 631 9,394 Effect of foreign operations taxed at various rates (232 ) (140 ) 1,662 Research tax credits (1,058 ) (931 ) (569 ) Effect of tax rate changes, permanent differences and adjustments of prior deferrals 1,137 2,114 153 Unrecognized tax benefits (281 ) 264 (294 ) Total $ 251 $ 555 $ 8,428 |
Aggregate Changes in Balance of Gross Unrecognized Tax Benefits | The aggregate changes in the balance of gross unrecognized tax benefits were as follows for fiscal 2016, 2015 and 2014: 2016 2015 2014 (in thousands) Beginning balance $ 7,173 $ 6,578 $ 6,482 Additions based on tax positions related to the current year 652 574 57 Additions for tax positions of prior years — 21 250 Settlements (281 ) — — Lapse of statute of limitations — — (211 ) Ending balance $ 7,544 $ 7,173 $ 6,578 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Future Minimum Lease Payments | As of December 31, 2016, future minimum lease payments are as follows. (in thousands) 2017 $ 2,824 2018 2,783 2019 2,859 2020 2,790 2021 2,874 Thereafter 6,777 $ 20,907 |
Activity in Warranty Provision Account | The following table displays the activity in the warranty provision account for fiscal 2016 and 2015: 2016 2015 (in thousands) Beginning balance $ 982 $ 1,186 Expenditures incurred under warranties (488 ) (463 ) Accruals for product warranties 943 837 Adjustments to previously existing warranty accruals (430 ) (578 ) Ending balance $ 1,007 $ 982 |
Segment and Geographic Inform36
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Information for Each Reportable Segment | Information for each reportable segment for fiscal 2016, 2015 and 2014 is as follows: 2016 2015 2014 (in thousands) Net Revenues Thin-film Equipment $ 45,253 $ 39,622 $ 25,290 Photonics 34,871 35,538 40,260 Total segment net revenues $ 80,124 $ 75,160 $ 65,550 2016 2015 2014 (in thousands) Operating Profit (Loss) Thin-film Equipment $ (8,309 ) $ (9,345 ) $ (22,008 ) Photonics 5,813 5,206 8,932 Total segment operating profit (loss) (2,496 ) (4,139 ) (13,076 ) Unallocated costs (5,067 ) (4,599 ) (6,278 ) Operating loss (7,563 ) (8,738 ) (19,354 ) Interest income 195 179 179 Other income (expense), net 178 (52 ) 158 Loss before income taxes $ (7,190 ) $ (8,611 ) $ (19,017 ) 2016 2015 2014 (in thousands) Depreciation and Amortization Thin-film Equipment $ 2,710 $ 2,443 $ 2,379 Photonics 1,736 1,737 1,834 Total segment depreciation and amortization 4,446 4,180 4,213 Unallocated costs 391 417 492 Total consolidated depreciation and amortization $ 4,837 $ 4,597 $ 4,705 2016 2015 2014 (in thousands) Capital Additions Thin-film Equipment $ 700 $ 1,433 $ 2,230 Photonics 2,463 749 1,203 Total segment capital additions 3,163 2,182 3,433 Unallocated 210 935 272 Total consolidated capital additions $ 3,373 $ 3,117 $ 3,705 |
Segment Assets | 2016 2015 (in thousands) Segment Assets Thin-film Equipment $ 39,503 $ 29,528 Photonics 16,071 16,029 Total segment assets 55,574 45,557 Cash and investments 48,238 46,627 Restricted cash 1,602 1,780 Deferred income taxes 3 12 Other current assets 997 1,052 Common property, plant and equipment 1,039 1,218 Other assets 871 1,435 Consolidated total assets $ 108,324 $ 97,681 |
Revenue by Geographic Region/Country | Geographic revenue information for fiscal 2016, 2015 and 2014 is based on the location of the customer. Revenue from unaffiliated customers by geographic region/country was as follows: 2016 2015 2014 (in thousands) United States $ 42,048 $ 49,034 $ 51,584 Asia (*) 37,143 23,855 9,931 Europe 933 2,271 4,035 Total net revenues $ 80,124 $ 75,160 $ 65,550 (*) Revenues are attributable to the geographic area in which Intevac’s customers are located. Net trade revenues in Asia include shipments to Singapore, China, Japan and Malaysia. |
Net Property, Plant and Equipment by Geographic Region | Net property, plant and equipment by geographic region at December 31 2016 and January 2, 2016 was as follows: December 31, January 2, 2016 2016 (in thousands) United States $ 11,148 $ 10,990 Asia 89 931 Net property, plant & equipment $ 11,237 $ 11,921 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Changes in Restructuring Reserves | The changes in restructuring reserves associated with the cost reduction plans for fiscal 2015 and 2014, are as follows. Severance and 2015 2014 (in thousands) Balance at the beginning of the year $ — $ — Provision for restructuring charges 148 288 Cash payments made (148 ) (288 ) Balance at the end of the year $ — $ — |
Selected Quarterly Consolidat38
Selected Quarterly Consolidated Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Selected Quarterly Consolidated Financial Data | Three Months Ended Apr. 2, 2016 July 2, 2016 Oct. 1, 2016 Dec. 31, 2016 (in thousands, except per share data) Net sales $ 13,664 $ 14,918 $ 22,559 $ 28,982 Gross profit 3,856 6,127 8,515 11,912 Net income (loss) (6,305 ) (3,490 ) (481 ) 2,835 Basic net income (loss) per share $ (0.31 ) $ (0.17 ) $ (0.02 ) $ 0.14 Diluted net income (loss) per share $ (0.31 ) $ (0.17 ) $ (0.02 ) $ 0.13 Three Months Ended Apr. 4, 2015 July 4, 2015 Oct. 3, 2015 Jan. 2, 2016 (in thousands, except per share data) Net sales $ 19,885 $ 20,458 $ 18,418 $ 16,398 Gross profit 6,922 7,806 4,912 6,677 Net income (loss) (2,893 ) 12 (3,759 ) (2,526 ) Basic and diluted net income (loss) per share $ (0.12 ) $ — $ (0.17 ) $ (0.12 ) |
Summary of Significant Accoun39
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Restricted cash | $ 1,602,000 | $ 1,780,000 | |
Net income (losses) from foreign currency transactions | $ (99,000) | $ 80,000 | $ 11,000 |
Minimum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Intangible assets estimated useful life | 1 year | ||
Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Intangible assets estimated useful life | 13 years | ||
Computers and Software | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives of asset | 3 years | ||
Machinery and Equipment | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives of asset | 5 years | ||
Furniture and Fixtures | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives of asset | 7 years | ||
Vehicles | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives of asset | 4 years | ||
Leasehold Improvements | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Lease and leasehold improvements estimated useful lives | Remaining lease term | ||
Pledged as Collateral for Standby Letter of Credit | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Restricted cash | $ 1,000,000 | ||
Collateral for Various Guarantees | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Restricted cash | $ 602,000 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income by Component (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Jan. 02, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | $ 75,997 | $ 98,630 |
Other comprehensive loss before reclassification | (91) | (207) |
Amounts reclassified from other comprehensive income | 0 | 0 |
Net current-period other comprehensive loss | (91) | (207) |
Ending Balance | 73,266 | 75,997 |
Foreign currency | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | 452 | 620 |
Other comprehensive loss before reclassification | (109) | (168) |
Amounts reclassified from other comprehensive income | 0 | 0 |
Net current-period other comprehensive loss | (109) | (168) |
Ending Balance | 343 | 452 |
Unrealized holding gains on available-for-sale investments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (40) | (1) |
Other comprehensive loss before reclassification | 18 | (39) |
Amounts reclassified from other comprehensive income | 0 | 0 |
Net current-period other comprehensive loss | 18 | (39) |
Ending Balance | (22) | (40) |
Accumulated other comprehensive income | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | 412 | 619 |
Ending Balance | $ 321 | $ 412 |
Equity-Based Compensation - Add
Equity-Based Compensation - Additional information (Detail) | 1 Months Ended | 12 Months Ended | ||||
Feb. 29, 2016Employee$ / sharesshares | Feb. 28, 2015Employee$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Jan. 02, 2016USD ($)$ / shares | Jan. 31, 2015 | Jan. 03, 2015USD ($)$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of option price related to fair market value | 100.00% | |||||
Common stock shares authorized for further issuance | shares | 5,500,000 | |||||
2012 plan options expiration date | May 8, 2022 | |||||
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% | |||||
Total intrinsic value of options exercised | $ | $ 13,000 | $ 65,000 | $ 496,000 | |||
Total unrecognized compensation expense | $ | $ 640,000 | |||||
RSU conversion ratio | 100.00% | |||||
Annual incentive plan stock awards granted | shares | 422,500 | |||||
Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options, expiration period | 10 years | |||||
Employee stock purchase plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available under issuance of ESPP | shares | 242,000 | |||||
Total unrecognized compensation expense | $ | $ 277,000 | |||||
Unrecognized compensation expenses recognition period | 6 months 22 days | |||||
Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation expenses recognition period | 1 year 2 months 1 day | |||||
Weighted-average fair value of grants per share | $ / shares | $ 1.76 | $ 2.05 | $ 3.15 | |||
Stock Options | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award, vesting period | 3 years | |||||
Stock Options | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award, vesting period | 4 years | |||||
Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation expenses recognition period | 1 year 15 days | |||||
Unrecognized compensation expense | $ | $ 1,400,000 | |||||
Number of share awards granted | shares | 768,527 | |||||
Annual incentive plan equity-based compensation expense | $ | $ 490,000 | $ 324,000 | $ 554,000 | |||
Number of participants in restricted stock grants awarded | Employee | 34 | 29 | ||||
Annual incentive plan stock awards granted | shares | 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 | |||||
Restricted Stock Units (RSUs) | Annual Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award, vesting period | 1 year | 1 year | 1 year | |||
Unrecognized compensation expenses recognition period | 1 year 1 month 24 days | |||||
Unrecognized compensation expense | $ | $ 566,000 | |||||
Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of share awards granted | shares | 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 | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity-based compensation | $ 3,744 | $ 3,620 | $ 3,000 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity-based compensation | 880 | 963 | 1,094 |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity-based compensation | 2,190 | 1,711 | 1,464 |
Employee stock purchase plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity-based compensation | $ 674 | $ 946 | $ 442 |
Weighted-Average Fair Value of
Weighted-Average Fair Value of Stock Options and Employee Stock Purchase Rights using Weighted-Average Assumptions (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Stock Options | |||
Weighted-average assumptions | |||
Weighted-average fair value of grants per share | $ 1.76 | $ 2.05 | $ 3.15 |
Expected volatility | 43.86% | 46.12% | 52.12% |
Risk free interest rate | 0.97% | 1.42% | 1.39% |
Expected term of options (in years) | 4 years 3 months 11 days | 3 years 11 months 27 days | 4 years 4 months 17 days |
Dividend yield | 0.00% | 0.00% | 0.00% |
Stock Purchase Rights | |||
Weighted-average assumptions | |||
Weighted-average fair value of grants per share | $ 1.55 | $ 2.14 | $ 2.08 |
Expected volatility | 39.22% | 43.45% | 44.00% |
Risk free interest rate | 0.75% | 0.45% | 0.11% |
Expected term of options (in years) | 1 year 10 months 13 days | 1 year 4 months 10 days | 8 months 9 days |
Dividend yield | 0.00% | 0.00% | 0.00% |
Option Activity and Changes (De
Option Activity and Changes (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Jan. 02, 2016 | |
Shares | ||
Options outstanding at January 2, 2016 | 2,433,647 | |
Options granted | 422,500 | |
Options cancelled and forfeited | (107,230) | |
Options exercised | (8,553) | |
Options outstanding at December 31, 2016 | 2,740,364 | 2,433,647 |
Vested and expected to vest at December 31, 2016 | 2,624,994 | |
Options exercisable at December 31, 2016 | 1,829,765 | |
Weighted Average Exercise Price | ||
Options outstanding at January 2, 2016 | $ 7.52 | |
Options granted | 4.88 | |
Options cancelled and forfeited | 10.69 | |
Options exercised | 4.47 | |
Options outstanding at December 31, 2016 | 7 | $ 7.52 |
Vested and expected to vest at December 31, 2016 | 7.07 | |
Options exercisable at December 31, 2016 | $ 7.73 | |
Weighted Average Remaining Contractual Term | ||
Options outstanding | 3 years 7 months 21 days | 4 years 1 month 6 days |
Vested and expected to vest at December 31, 2016 | 3 years 6 months 18 days | |
Options exercisable at December 31, 2016 | 2 years 8 months 27 days | |
Aggregate Intrinsic Value | ||
Options outstanding at January 2, 2016 | $ 141,546 | |
Options outstanding at December 31, 2016 | 5,837,900 | $ 141,546 |
Vested and expected to vest at December 31, 2016 | 5,476,403 | |
Options exercisable at December 31, 2016 | $ 3,082,215 |
Options Outstanding and Current
Options Outstanding and Currently Exercisable (Detail) | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Exercise Price Range Range One | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, minimum | $ 3.91 |
Range of Exercise Prices, maximum | $ 5.42 |
Number of Shares Outstanding | shares | 1,023,311 |
Options Outstanding Weighted Average Remaining Contractual Term (In Years) | 4 years 10 months 17 days |
Weighted Average Exercise Price | $ 4.77 |
Number Vested and Exercisable | shares | 407,446 |
Weighted Average Exercise Price | $ 4.54 |
Exercise Price Range Range Two | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, minimum | 5.43 |
Range of Exercise Prices, maximum | $ 7.37 |
Number of Shares Outstanding | shares | 924,908 |
Options Outstanding Weighted Average Remaining Contractual Term (In Years) | 3 years 11 months 5 days |
Weighted Average Exercise Price | $ 6.61 |
Number Vested and Exercisable | shares | 660,729 |
Weighted Average Exercise Price | $ 6.61 |
Exercise Price Range Range Three | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, minimum | 7.38 |
Range of Exercise Prices, maximum | $ 20.10 |
Number of Shares Outstanding | shares | 792,145 |
Options Outstanding Weighted Average Remaining Contractual Term (In Years) | 1 year 8 months 16 days |
Weighted Average Exercise Price | $ 10.34 |
Number Vested and Exercisable | shares | 761,590 |
Weighted Average Exercise Price | $ 10.42 |
Exercise Price Range Range Four | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, minimum | 3.91 |
Range of Exercise Prices, maximum | $ 20.10 |
Number of Shares Outstanding | shares | 2,740,364 |
Options Outstanding Weighted Average Remaining Contractual Term (In Years) | 3 years 7 months 21 days |
Weighted Average Exercise Price | $ 7 |
Number Vested and Exercisable | shares | 1,829,765 |
Weighted Average Exercise Price | $ 7.73 |
Summary of Restricted Stock Uni
Summary of Restricted Stock Units Activity (Detail) - Restricted Stock Units (RSUs) | 12 Months Ended |
Dec. 31, 2016USD ($)$ / sharesshares | |
Shares | |
Non-vested RSUs at January 2, 2016 | shares | 553,584 |
Granted | shares | 768,527 |
Vested | shares | (268,883) |
Cancelled | shares | (103,773) |
Non-vested RSUs at December 31, 2016 | shares | 949,455 |
Weighted Average Grant Date Fair Value | |
Non-vested RSUs at January 2, 2016 | $ / shares | $ 6.16 |
Granted | $ / shares | 4.20 |
Vested | $ / shares | 6.46 |
Cancelled | $ / shares | 4.81 |
Non-vested RSUs at December 31, 2016 | $ / shares | $ 4.64 |
Weighted Average Remaining Contractual Term | |
Non-vested RSUs at January 2, 2016 | 1 year 7 days |
Non-vested RSUs at December 31, 2016 | 1 year 15 days |
Aggregate Intrinsic Value | |
Non-vested RSUs at January 2, 2016 | $ | $ 2,607,381 |
Non-vested RSUs at December 31, 2016 | $ | $ 8,117,840 |
Weighted Average Fair Value of
Weighted Average Fair Value of Market Condition Based RSUs (Detail) - Restricted Stock | 12 Months Ended |
Dec. 31, 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% |
Employee Stock Purchase Plan Ac
Employee Stock Purchase Plan Activities (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Employee Stock Purchase Plan [Line Items] | |||
Shares purchased | 384 | 374 | 444 |
Weighted-average purchase price per share | $ 3.78 | $ 3.90 | $ 3.63 |
Aggregate intrinsic value of purchase rights exercised | $ 514 | $ 688 | $ 1,444 |
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 | 12 Months Ended | |||||||||
Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Schedule Of Computation Of Basic And Diluted Earnings Per Common Share [Line Items] | |||||||||||
Net loss | $ 2,835 | $ (481) | $ (3,490) | $ (6,305) | $ (2,526) | $ (3,759) | $ 12 | $ (2,893) | $ (7,441) | $ (9,166) | $ (27,445) |
Weighted-average shares - basic | 20,761 | 22,218 | 23,671 | ||||||||
Effect of dilutive potential common shares | 0 | 0 | 0 | ||||||||
Weighted-average shares - diluted | 20,761 | 22,218 | 23,671 | ||||||||
Net loss per share - basic and diluted | $ (0.12) | $ (0.17) | $ (0.12) | $ (0.36) | $ (0.41) | $ (1.16) |
Customers That Accounted for at
Customers That Accounted for at Least Ten percent of Accounts Receivable (Detail) - Accounts Receivable - Credit Concentration Risk | 12 Months Ended | |||
Dec. 31, 2016 | Jan. 02, 2016 | |||
Seagate Technology | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 55.00% | [1] | ||
U.S. Government | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | [1] | 11.00% | ||
HGST | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 10.00% | 37.00% | ||
Western Digital | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | [1] | 15.00% | ||
[1] | Less than 10% |
Customers That Accounted for 51
Customers That Accounted for at Least ten percent of Consolidated Net Revenue (Detail) - Sales Revenue Net - Customer Concentration Risk [Member] | 12 Months Ended | |||||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | ||||
U.S. Government | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, percentage | 22.00% | 26.00% | 32.00% | |||
Seagate Technology | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, percentage | 34.00% | 22.00% | 15.00% | |||
Elbit Systems of America | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, percentage | 10.00% | [1] | [1] | |||
HGST | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, percentage | [1] | 15.00% | 17.00% | |||
[1] | Less than 10% |
Components of Receivables (Deta
Components of Receivables (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade receivables and other | $ 15,167 | $ 11,939 |
Unbilled costs and accrued profits | 2,280 | 371 |
Less: allowance for doubtful accounts | 0 | 0 |
Trade and other accounts receivable, net of allowances of $0 at both December 31, 2016 and January 2, 2016 | $ 17,447 | $ 12,310 |
Inventories Stated at Lower of
Inventories Stated at Lower of Average Cost or Market (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Inventory [Line Items] | ||
Raw materials | $ 10,290 | $ 11,081 |
Work-in-progress | 6,470 | 4,365 |
Finished goods | 8,116 | 3,314 |
Inventories | $ 24,876 | $ 18,760 |
Property Plant and Equipment (D
Property Plant and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment | $ 56,331 | $ 57,559 |
Less accumulated depreciation and amortization | 45,094 | 45,638 |
Total property, plant and equipment, net | 11,237 | 11,921 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment | 14,653 | 15,242 |
Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment | $ 41,678 | $ 42,317 |
Balance Sheet Details - Additio
Balance Sheet Details - Additional Information (Detail) - USD ($) | Dec. 31, 2016 | Jan. 02, 2016 |
Balance Sheet Details [Line Items] | ||
Customer advances | $ 53,000 | |
Accounts payable, book overdraft | $ 349,000 | $ 582,000 |
Other Accrued Liabilities (Deta
Other Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Accrued Liabilities [Line Items] | ||
Deferred revenue | $ 14,416 | $ 3,789 |
Accrued product warranties | 829 | 835 |
Other taxes payable | 660 | 378 |
Acquisition-related contingent consideration | 329 | 179 |
Income taxes payable | 246 | 234 |
Other | 531 | 217 |
Total other accrued liabilities | $ 17,011 | $ 5,632 |
Other Long Term Liabilities (De
Other Long Term Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Other Long Term Liabilities [Line Items] | ||
Deferred rent | $ 2,392 | $ 1,190 |
Acquisition-related contingent consideration | 430 | 711 |
Accrued income taxes | 82 | 363 |
Accrued product warranties | 178 | 147 |
Total other long-term liabilities | $ 3,082 | $ 2,411 |
Information Regarding Other Acq
Information Regarding Other Acquisition Related Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived, Gross Carrying Amount | $ 8,387 | $ 8,387 |
Accumulated Amortization | 6,129 | 5,275 |
Finite Lived, Net Carrying Amount | 2,258 | 3,112 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived, Gross Carrying Amount | 3,119 | 3,119 |
Accumulated Amortization | 2,869 | 2,646 |
Finite Lived, Net Carrying Amount | 250 | 473 |
Purchased technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived, Gross Carrying Amount | 5,148 | 5,148 |
Accumulated Amortization | 3,140 | 2,509 |
Finite Lived, Net Carrying Amount | 2,008 | 2,639 |
Covenants not to compete | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived, Gross Carrying Amount | 40 | 40 |
Accumulated Amortization | 40 | 40 |
Backlog | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived, Gross Carrying Amount | 80 | 80 |
Accumulated Amortization | $ 80 | $ 80 |
Purchased Intangible Assets - A
Purchased Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Total amortization expense of finite-lived intangibles | $ 854,000 | $ 854,000 | $ 936,000 |
Thin-film Equipment Segment | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets | 2,000,000 | ||
Photonics | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets | $ 217,000 |
Estimated Future Amortization E
Estimated Future Amortization Expense Related to Finite-Lived Purchased Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
2,017 | $ 755 | |
2,018 | 615 | |
2,019 | 615 | |
2,020 | 273 | |
Finite Lived, Net Carrying Amount | $ 2,258 | $ 3,112 |
Contingent Consideration - Addi
Contingent Consideration - Additional Information (Detail) - Solar Implant Technologies $ in Millions | Nov. 19, 2010USD ($) |
Milestone | |
Business Acquisition [Line Items] | |
Maximum amount of cash potentially earned in contingent compensation arrangements | $ 7 |
Revenue Earnout | |
Business Acquisition [Line Items] | |
Maximum amount of cash potentially earned in contingent compensation arrangements | $ 9 |
Quantitative Range of Significa
Quantitative Range of Significant Unobservable Inputs Used in Calculation of Fair Value of Continent Consideration Liability (Detail) - Fair Value, Inputs, Level 3 - Revenue Earnout $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Business Acquisition, Contingent Consideration [Line Items] | |
Valuation technique | Discounted cash flow |
Fair Value | $ 759 |
Weighted Average | |
Business Acquisition, Contingent Consideration [Line Items] | |
Weighted average cost of capital | 15.30% |
Probability weighting of achieving revenue forecasts | 29.60% |
Minimum | |
Business Acquisition, Contingent Consideration [Line Items] | |
Probability weighting of achieving revenue forecasts | 10.00% |
Maximum | |
Business Acquisition, Contingent Consideration [Line Items] | |
Probability weighting of achieving revenue forecasts | 80.00% |
Reconciliation of Change in Fai
Reconciliation of Change in Fair Value Measurement of Contingent Consideration Liability (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Business Acquisition, Contingent Consideration [Line Items] | |||
Beginning balance | $ 890 | $ 1,134 | $ 1,384 |
Changes in fair value | (100) | (244) | (250) |
Cash payments made | (31) | ||
Ending balance | $ 759 | $ 890 | $ 1,134 |
Cash, Cash Equivalents and Shor
Cash, Cash Equivalents and Short-Term Investments and Long-Term Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 48,260 | $ 46,667 |
Unrealized Holdings Gains | 1 | |
Unrealized Holdings Losses | 23 | 40 |
Fair Value | 48,238 | 46,627 |
Cash and Cash Equivalents | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 27,043 | 13,746 |
Fair Value | 27,043 | 13,746 |
Short-term Investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 17,610 | 23,215 |
Unrealized Holdings Losses | 8 | 7 |
Fair Value | 17,602 | 23,208 |
Short-term Investments | Corporate bonds and medium-term notes | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 8,586 | 9,978 |
Unrealized Holdings Losses | 6 | 7 |
Fair Value | 8,580 | 9,971 |
Short-term Investments | Municipal bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 600 | 4,238 |
Fair Value | 600 | 4,238 |
Short-term Investments | U.S. treasury and agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 6,432 | 8,999 |
Unrealized Holdings Losses | 1 | |
Fair Value | 6,431 | 8,999 |
Other Long-term Investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 3,607 | 9,706 |
Unrealized Holdings Gains | 1 | |
Unrealized Holdings Losses | 15 | 33 |
Fair Value | 3,593 | 9,673 |
Other Long-term Investments | Corporate bonds and medium-term notes | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,510 | 6,212 |
Unrealized Holdings Losses | 11 | 23 |
Fair Value | 2,499 | 6,189 |
Other Long-term Investments | Municipal bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 500 | |
Unrealized Holdings Losses | 4 | |
Fair Value | 496 | |
Other Long-term Investments | U.S. treasury and agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 597 | 3,494 |
Unrealized Holdings Gains | 1 | |
Unrealized Holdings Losses | 10 | |
Fair Value | 598 | 3,484 |
Cash | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 18,726 | 6,208 |
Fair Value | 18,726 | 6,208 |
Money market funds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 8,317 | 7,538 |
Fair Value | 8,317 | $ 7,538 |
Commercial paper | Short-term Investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,992 | |
Unrealized Holdings Losses | 1 | |
Fair Value | $ 1,991 |
Contractual Maturities of Avail
Contractual Maturities of Available-For-Sale Securities (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Amortized Cost | |
Amortized Cost, Due in one year or less | $ 25,927 |
Amortized Cost, Due after one through two years | 3,607 |
Amortized Cost | 29,534 |
Fair Value | |
Fair Value, Due in one year or less | 25,919 |
Fair Value, Due after one through two years | 3,593 |
Fair Value | $ 29,512 |
Fair Market Value of Investment
Fair Market Value of Investments with Unrealized Losses Not Deemed to be Other-Than Temporarily Impaired (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Unrealized Loss Position, Less than 12 Months, Fair Value | $ 15,000 |
Unrealized Loss Position, Less than 12 Months, Gross Unrealized Losses | 23 |
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 | 1,494 |
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 | 9,478 |
Unrealized Loss Position, Less than 12 Months, Gross Unrealized Losses | 17 |
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 | 1,096 |
Unrealized Loss Position, Less than 12 Months, Gross Unrealized Losses | 4 |
Unrealized Loss Position, Greater than 12 Months, Fair Value | 0 |
Unrealized Loss Position, Greater than 12 Months, Gross Unrealized Losses | 0 |
U.S. treasury and agency securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Unrealized Loss Position, Less than 12 Months, Fair Value | 2,932 |
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 | Dec. 31, 2016USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | $ 29,512 |
Fair Value, Measurements, Recurring | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 29,512 |
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 | 8,317 |
Fair Value, Measurements, Recurring | Commercial paper | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 1,991 |
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 | 7,029 |
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 | 11,079 |
Fair Value, Measurements, Recurring | Municipal bonds | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 1,096 |
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 | 12,414 |
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 | 8,317 |
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 | 4,097 |
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 | 17,098 |
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 | 1,991 |
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 | 2,932 |
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 | 11,079 |
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 | $ 1,096 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 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 | Dec. 31, 2016 | Jan. 02, 2016 | |
Derivatives, Fair Value [Line Items] | |||
Notional Amounts | $ 1,146 | $ 924 | |
Derivative Assets | [1] | 1 | |
Derivative Liabilities | [2] | 8 | 4 |
Foreign currency forward contracts | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amounts | 1,146 | 924 | |
Derivative Assets | [1] | 1 | |
Derivative Liabilities | [2] | $ 8 | $ 4 |
[1] | Prepaid expenses and other current assets | ||
[2] | Other accrued liabilities |
Equity - Additional Information
Equity - Additional Information (Detail) - USD ($) | Nov. 12, 2015 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 31, 2016 | Nov. 21, 2013 |
Equity, Class of Treasury Stock [Line Items] | |||||
Stock repurchase authorized amount | $ 30,000,000 | ||||
Shares of common stock repurchased | 3,419,000 | 1,185,000 | |||
Cost of stock repurchased | $ 18,503,000 | $ 8,302,000 | |||
Stock repurchase remained available for future stock repurchase | $ 1,500,000 | ||||
NRC | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Shares of common stock repurchased | 1,483,171 | ||||
Outstanding common stock repurchased percentage | 6.80% | ||||
Purchase price per share | $ 4.98 | ||||
Cost of stock repurchased | $ 7,400,000 |
Stock Repurchases (Detail)
Stock Repurchases (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Jan. 02, 2016 | Jan. 03, 2015 | |
Equity, Class of Treasury Stock [Line Items] | ||
Shares of common stock repurchased | 3,419 | 1,185 |
Cost of stock repurchased | $ 18,503 | $ 8,302 |
Average price paid per share | $ 5.39 | $ 6.97 |
Provision for Income Tax (Detai
Provision for Income Tax (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Federal: | |||
Current | $ (324) | ||
Deferred | $ 0 | $ 0 | 0 |
Federal Income Tax Expense (Benefit), Continuing Operations, Total | (324) | ||
State: | |||
Current | 5 | 6 | 5 |
Deferred | 0 | 0 | 0 |
State and Local Income Tax Expense (Benefit), Continuing Operations, Total | 5 | 6 | 5 |
Foreign: | |||
Current | 237 | 561 | 81 |
Deferred | 9 | (12) | 8,666 |
Foreign Income Tax Expense (Benefit), Continuing Operations, Total | 246 | 549 | 8,747 |
Total | $ 251 | $ 555 | $ 8,428 |
Income (Loss) Before Income Tax
Income (Loss) Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Schedule of Components of Income Before Income Tax Expense (Benefit) [Line Items] | |||
U.S | $ (8,703) | $ (9,538) | $ (13,191) |
Foreign | 1,513 | 927 | (5,826) |
Income (loss) before income taxes | $ (7,190) | $ (8,611) | $ (19,017) |
Effective tax rate | (3.50%) | (6.40%) | (44.30%) |
Significant Components of Defer
Significant Components of Deferred Tax Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Deferred tax assets: | ||
Vacation, warranty and other accruals | $ 926 | $ 898 |
Depreciation and amortization | 600 | 814 |
Intangible amortization | 2,060 | 2,397 |
Inventory valuation | 3,091 | 3,321 |
Deferred income | 29 | 750 |
Equity-based compensation | 3,821 | 3,612 |
Net operating loss, research and other tax credit carryforwards | 54,844 | 51,186 |
Other | 918 | 481 |
Deferred Tax Assets, Gross, Total | 66,289 | 63,459 |
Valuation allowance for deferred tax assets | (65,189) | (62,365) |
Total deferred tax assets | 1,100 | 1,094 |
Deferred tax liabilities: | ||
Purchased technology | (720) | (950) |
Unbilled revenue | (377) | (132) |
Total deferred tax liabilities | (1,097) | (1,082) |
Net deferred tax assets | 3 | 12 |
As reported on the balance sheet: | ||
Current deferred tax assets | 12 | |
Non-current deferred tax assets | 3 | |
Net deferred tax assets | $ 3 | $ 12 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes [Line Items] | |||||
Income tax benefit from valuation allowance | $ 9,394,000 | ||||
Undistributed earnings from non-U.S. operations | $ 14,300,000 | ||||
Unrecognized tax benefits | 7,544,000 | $ 7,173,000 | 6,578,000 | $ 6,482,000 | |
Unrecognized tax benefits that would impact effective tax rate | 73,000 | ||||
Unrecognized net tax expense (benefit) for interest | (1,000) | 2,000 | (110,000) | ||
Accrued interest related to unrealized tax benefits | 9,000 | ||||
Internal Revenue Service (IRS) | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryforwards | $ 66,000,000 | ||||
Net operating loss carryforwards, expiration year | 2,028 | ||||
Tax credit carryforwards | $ 13,500,000 | ||||
Tax credit carryforwards, expiration year | 2,019 | ||||
Inland Revenue, Singapore (IRAS) | |||||
Income Taxes [Line Items] | |||||
Deposit for contested taxes and related interest | $ 871,000 | 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 | ||||
Singapore | |||||
Income Taxes [Line Items] | |||||
Income tax benefit from valuation allowance | (136,000) | 631,000 | 9,400,000 | ||
United States | |||||
Income Taxes [Line Items] | |||||
Income tax benefit from valuation allowance | 3,300,000 | $ 1,600,000 | $ 4,700,000 | $ 7,200,000 | $ 23,400,000 |
Foreign Tax Authority | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryforwards | 60,300,000 | ||||
State and Local Jurisdiction | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryforwards | $ 63,800,000 | ||||
Net operating loss carryforwards, expiration year | 2,028 | ||||
Tax credit carryforwards | $ 13,400,000 |
Difference Between Tax Provisio
Difference Between Tax Provision (Benefit) at Statutory Federal Income Tax Rate and Tax Provision (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Reconciliation Of Income Taxes [Line Items] | |||
Income tax (benefit) at the federal statutory rate | $ (2,517) | $ (3,014) | $ (6,656) |
State income taxes, net of federal benefit | 5 | 6 | 5 |
Effect of foreign operations taxed at various rates | (232) | (140) | 1,662 |
Research tax credits | (1,058) | (931) | (569) |
Effect of tax rate changes, permanent differences and adjustments of prior deferrals | 1,137 | 2,114 | 153 |
Unrecognized tax benefits | (281) | 264 | (294) |
Total | 251 | 555 | 8,428 |
United States | |||
Reconciliation Of Income Taxes [Line Items] | |||
Change in valuation allowance | 3,333 | 1,625 | 4,733 |
Foreign Tax Authority | |||
Reconciliation Of Income Taxes [Line Items] | |||
Change in valuation allowance | $ (136) | $ 631 | $ 9,394 |
Aggregate Changes in Balance of
Aggregate Changes in Balance of Gross Unrecognized Tax benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Income Tax Contingency [Line Items] | |||
Beginning balance | $ 7,173 | $ 6,578 | $ 6,482 |
Additions based on tax positions related to the current year | 652 | 574 | 57 |
Additions for tax positions of prior years | 21 | 250 | |
Settlements | (281) | ||
Lapse of statute of limitations | (211) | ||
Ending balance | $ 7,544 | $ 7,173 | $ 6,578 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | ||||
Feb. 29, 2016Employee$ / sharesshares | Feb. 28, 2015Employee$ / sharesshares | Dec. 31, 2016USD ($)Ageshares | Jan. 02, 2016USD ($) | Jan. 31, 2015USD ($) | Jan. 03, 2015USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined contribution retirement plan, employee eligibility age | Age | 18 | |||||
Cash contributions | $ 310,000 | $ 0 | $ 0 | |||
Annual incentive plan stock awards granted | shares | 422,500 | |||||
Defined bonus plan, charges to expenses | $ 295,000 | 219,000 | $ 22,000 | |||
Equity-based compensation | 3,744,000 | 3,620,000 | 3,000,000 | |||
Restricted Stock Units (RSUs) | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Number of participants in restricted stock grants awarded | Employee | 34 | 29 | ||||
Annual incentive plan stock awards granted | shares | 266,000 | 133,000 | ||||
Weighted-average fair value of grants per share | $ / shares | $ 4.40 | $ 6.85 | ||||
Equity-based compensation | $ 2,190,000 | $ 1,711,000 | $ 1,464,000 | |||
Annual Incentive Plan | Restricted Stock Units (RSUs) | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Award, vesting period | 1 year | 1 year | 1 year | |||
Equity-based compensation | $ 490,000 | $ 324,000 | $ 554,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Commitments and Contingencies [Line Items] | |||
Deferred rent, included in other long-term liabilities | $ 2,392 | $ 1,190 | |
Tenant improvement allowance | 1,700 | ||
Standby letter of credit for lease | 1,000 | ||
Restricted cash | 1,602 | 1,780 | |
Gross rental expense | 3,800 | $ 4,000 | $ 3,800 |
Letters of credit and bank guarantees outstanding, amount | 1,600 | ||
Letters of credit and bank guarantees collateralized by restricted cash | $ 1,600 | ||
Minimum product warranty range | 12 months | ||
Maximum product warranty range | 24 months | ||
Product warranty offer on sale | 3 months | ||
Pledged as Collateral for Standby Letter of Credit | |||
Commitments and Contingencies [Line Items] | |||
Restricted cash | $ 1,000 | ||
Maximum | |||
Commitments and Contingencies [Line Items] | |||
Operating lease expiration date | 2024-03 |
Future Minimum Lease Payments (
Future Minimum Lease Payments (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Operating Leased Assets [Line Items] | |
2,017 | $ 2,824 |
2,018 | 2,783 |
2,019 | 2,859 |
2,020 | 2,790 |
2,021 | 2,874 |
Thereafter | 6,777 |
Operating Leases, Future Minimum Payments Due, Total | $ 20,907 |
Warranty Provision Account (Det
Warranty Provision Account (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Jan. 02, 2016 | |
Accrued Warranty [Line Items] | ||
Beginning balance | $ 982 | $ 1,186 |
Expenditures incurred under warranties | (488) | (463) |
Accruals for product warranties | 943 | 837 |
Adjustments to previously existing warranty accruals | (430) | (578) |
Ending balance | $ 1,007 | $ 982 |
Segment and Geographic Inform82
Segment and Geographic Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 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 | 12 Months Ended | |||||||||
Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Total segment net revenues | $ 28,982 | $ 22,559 | $ 14,918 | $ 13,664 | $ 16,398 | $ 18,418 | $ 20,458 | $ 19,885 | $ 80,124 | $ 75,160 | $ 65,550 |
Operating loss | (7,563) | (8,738) | (19,354) | ||||||||
Interest income | 195 | 179 | 179 | ||||||||
Other income and expense, net | 178 | (52) | 158 | ||||||||
Loss before income taxes | (7,190) | (8,611) | (19,017) | ||||||||
Thin-film Equipment Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total segment net revenues | 45,253 | 39,622 | 25,290 | ||||||||
Photonics | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total segment net revenues | 34,871 | 35,538 | 40,260 | ||||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating loss | (2,496) | (4,139) | (13,076) | ||||||||
Operating Segments | Thin-film Equipment Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating loss | (8,309) | (9,345) | (22,008) | ||||||||
Operating Segments | Photonics | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating loss | 5,813 | 5,206 | 8,932 | ||||||||
Unallocated Amount to Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Unallocated costs | $ (5,067) | $ (4,599) | $ (6,278) |
Depreciation and Amortization (
Depreciation and Amortization (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | $ 4,837 | $ 4,597 | $ 4,705 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 4,446 | 4,180 | 4,213 |
Operating Segments | Thin-film Equipment Segment | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 2,710 | 2,443 | 2,379 |
Operating Segments | Photonics | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 1,736 | 1,737 | 1,834 |
Unallocated Amount to Segment | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | $ 391 | $ 417 | $ 492 |
Capital Additions (Detail)
Capital Additions (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Capital additions | $ 3,373 | $ 3,117 | $ 3,705 |
Operating Segments | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Capital additions | 3,163 | 2,182 | 3,433 |
Operating Segments | Thin-film Equipment Segment | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Capital additions | 700 | 1,433 | 2,230 |
Operating Segments | Photonics | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Capital additions | 2,463 | 749 | 1,203 |
Unallocated Amount to Segment | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Capital additions | $ 210 | $ 935 | $ 272 |
Assets for Each Reportable Segm
Assets for Each Reportable Segment (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Cash and investments | $ 48,238 | $ 46,627 |
Restricted cash | 1,602 | 1,780 |
Deferred income taxes | 3 | 12 |
Other current assets | 997 | 1,052 |
Common property, plant and equipment | 1,039 | 1,218 |
Other assets | 871 | 1,435 |
Consolidated total assets | 108,324 | 97,681 |
Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated total assets | 55,574 | 45,557 |
Operating Segments | Thin-film Equipment Segment | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated total assets | 39,503 | 29,528 |
Operating Segments | Photonics | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated total assets | $ 16,071 | $ 16,029 |
Revenue from Unaffiliated Custo
Revenue from Unaffiliated Customers by Geographic Region/Country (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Total net revenues | $ 28,982 | $ 22,559 | $ 14,918 | $ 13,664 | $ 16,398 | $ 18,418 | $ 20,458 | $ 19,885 | $ 80,124 | $ 75,160 | $ 65,550 | |
United States | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total net revenues | 42,048 | 49,034 | 51,584 | |||||||||
Asia | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total net revenues | [1] | 37,143 | 23,855 | 9,931 | ||||||||
Europe | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total net revenues | $ 933 | $ 2,271 | $ 4,035 | |||||||||
[1] | Revenues are attributable to the geographic area in which Intevac's customers are located. Net trade revenues in Asia include shipments to Singapore, China, Japan and Malaysia. |
Net Property, Plant and Equipme
Net Property, Plant and Equipment by Geographic Region (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Segment Reporting Information [Line Items] | ||
Net property, plant & equipment | $ 11,237 | $ 11,921 |
United States | ||
Segment Reporting Information [Line Items] | ||
Net property, plant & equipment | 11,148 | 10,990 |
Asia | ||
Segment Reporting Information [Line Items] | ||
Net property, plant & equipment | $ 89 | $ 931 |
Restructuring Charges - Additio
Restructuring Charges - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 02, 2016 | Jan. 03, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||
Percentage of reduction of global workforce | 3.00% | 6.00% |
Reduction in salary, wages and other employee-related expenses due to implementation of plan | $ 1.4 | $ 2.1 |
Changes in Restructuring Reserv
Changes in Restructuring Reserves (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2016 | Jan. 03, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||
Balance at the beginning of the year | $ 0 | $ 0 |
Provision for restructuring charges | 148 | 288 |
Cash payments made | (148) | (288) |
Balance at the end of the year | $ 0 | $ 0 |
Related Party Transaction - Add
Related Party Transaction - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Nov. 12, 2015 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 |
Related Party Transaction [Line Items] | ||||
Shares of common stock repurchased | 3,419,000 | 1,185,000 | ||
Cost of stock repurchased | $ 18,503 | $ 8,302 | ||
NRC | ||||
Related Party Transaction [Line Items] | ||||
Shares of common stock repurchased | 1,483,171 | |||
Outstanding common stock repurchased percentage | 6.80% | |||
Purchase price per share | $ 4.98 | |||
Cost of stock repurchased | $ 7,400 | |||
Outstanding shares ownership percentage | 3.60% | |||
Related party transaction description | Matthew Drapkin, a member of Intevac's Board of Directors, is a principal of NRC and a member of BC Advisors, LLC, which is the general partner of NRC. NRC continues to beneficially own approximately 3.6% of the outstanding shares of Intevac's common stock subsequent to the transaction. |
Selected Quarterly Consolidat92
Selected Quarterly Consolidated Financial Data (Unaudited) (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Quarterly Results Of Operations [Line Items] | |||||||||||
Net sales | $ 28,982 | $ 22,559 | $ 14,918 | $ 13,664 | $ 16,398 | $ 18,418 | $ 20,458 | $ 19,885 | $ 80,124 | $ 75,160 | $ 65,550 |
Gross profit | 11,912 | 8,515 | 6,127 | 3,856 | 6,677 | 4,912 | 7,806 | 6,922 | 30,409 | 26,317 | 17,433 |
Net income (loss) | $ 2,835 | $ (481) | $ (3,490) | $ (6,305) | $ (2,526) | $ (3,759) | $ 12 | $ (2,893) | $ (7,441) | $ (9,166) | $ (27,445) |
Basic net income (loss) per share | $ 0.14 | $ (0.02) | $ (0.17) | $ (0.31) | |||||||
Diluted net income (loss) per share | $ 0.13 | $ (0.02) | $ (0.17) | $ (0.31) | |||||||
Basic and diluted net income (loss) per share | $ (0.12) | $ (0.17) | $ (0.12) | $ (0.36) | $ (0.41) | $ (1.16) |