Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 31, 2017 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | IVAC | |
Entity Registrant Name | INTEVAC INC | |
Entity Central Index Key | 1,001,902 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 21,789,007 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 19,197 | $ 27,043 |
Short-term investments | 18,037 | 17,602 |
Trade and other accounts receivable, net of allowances of $0 at both September 30, 2017 and at December 31, 2016 | 22,311 | 17,447 |
Inventories | 32,581 | 24,876 |
Prepaid expenses and other current assets | 2,825 | 1,768 |
Total current assets | 94,951 | 88,736 |
Property, plant and equipment, net | 12,509 | 11,237 |
Long-term investments | 6,165 | 3,593 |
Restricted cash | 1,400 | 1,602 |
Intangible assets, net of amortization of $6,725 at September 30, 2017 and $6,129 at December 31, 2016 | 1,662 | 2,258 |
Deferred income taxes and other long-term assets | 745 | 898 |
Total assets | 117,432 | 108,324 |
Current liabilities: | ||
Accounts payable | 7,036 | 5,323 |
Accrued payroll and related liabilities | 5,781 | 4,220 |
Other accrued liabilities | 7,856 | 17,011 |
Customer advances | 12,347 | 5,422 |
Total current liabilities | 33,020 | 31,976 |
Other long-term liabilities | 2,994 | 3,082 |
Stockholders' equity: | ||
Common stock, $0.001 par value | 22 | 21 |
Additional paid-in capital | 176,282 | 171,314 |
Treasury stock, 4,845 shares at both September 30, 2017 and December 31, 2016 | (28,489) | (28,489) |
Accumulated other comprehensive income | 443 | 321 |
Accumulated deficit | (66,840) | (69,901) |
Total stockholders' equity | 81,418 | 73,266 |
Total liabilities and stockholders' equity | $ 117,432 | $ 108,324 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Net of allowances of trade, note and other accounts receivable | $ 0 | $ 0 |
Net of amortization of intangible assets | $ 6,725 | $ 6,129 |
Common stock, par value | $ 0.001 | $ 0.001 |
Treasury stock, shares | 4,845 | 4,845 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Sep. 30, 2017 | Oct. 01, 2016 | |
Net revenues: | ||||
Systems and components | $ 24,537 | $ 20,961 | $ 82,822 | $ 47,326 |
Technology development | 2,189 | 1,598 | 5,255 | 3,816 |
Total net revenues | 26,726 | 22,559 | 88,077 | 51,142 |
Cost of net revenues: | ||||
Systems and components | 13,402 | 13,025 | 47,419 | 29,490 |
Technology development | 2,026 | 1,019 | 4,842 | 3,155 |
Total cost of net revenues | 15,428 | 14,044 | 52,261 | 32,645 |
Gross profit | 11,298 | 8,515 | 35,816 | 18,497 |
Operating expenses: | ||||
Research and development | 4,535 | 4,067 | 13,635 | 14,220 |
Selling, general and administrative | 5,495 | 4,772 | 17,482 | 14,724 |
Total operating expenses | 10,030 | 8,839 | 31,117 | 28,944 |
Income (loss) from operations | 1,268 | (324) | 4,699 | (10,447) |
Interest income and other income (expense), net | 28 | 60 | 265 | 184 |
Income (loss) before income taxes | 1,296 | (264) | 4,964 | (10,263) |
Provision for income taxes | 66 | 217 | 805 | 13 |
Net income (loss) | $ 1,230 | $ (481) | $ 4,159 | $ (10,276) |
Net income (loss) per share: | ||||
Basic | $ 0.06 | $ (0.02) | $ 0.19 | $ (0.50) |
Diluted | $ 0.05 | $ (0.02) | $ 0.18 | $ (0.50) |
Weighted average common shares outstanding: | ||||
Basic | 21,714 | 20,869 | 21,475 | 20,704 |
Diluted | 22,970 | 20,869 | 22,989 | 20,704 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Sep. 30, 2017 | Oct. 01, 2016 | |
Net income (loss) | $ 1,230 | $ (481) | $ 4,159 | $ (10,276) |
Other comprehensive income (loss), before tax | ||||
Change in unrealized net gain on available-for-sale investments | 5 | (16) | 8 | 41 |
Foreign currency translation gains (losses) | 39 | (17) | 114 | 5 |
Other comprehensive income (loss), before tax | 44 | (33) | 122 | 46 |
Income tax (expense) benefit related to items in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | 44 | (33) | 122 | 46 |
Comprehensive income (loss) | $ 1,274 | $ (514) | $ 4,281 | $ (10,230) |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Oct. 01, 2016 | |
Operating activities | ||
Net income (loss) | $ 4,159 | $ (10,276) |
Adjustments to reconcile net income (loss) to net cash and cash equivalents used in operating activities: | ||
Depreciation and amortization | 2,877 | 3,744 |
Net amortization of investment premiums and discounts | 53 | 96 |
Equity-based compensation | 3,012 | 2,896 |
Change in the fair value of acquisition-related contingent consideration | (181) | (90) |
Deferred income taxes | (1) | 9 |
Gain on disposal of equipment | (8) | |
Changes in operating assets and liabilities | (11,658) | 577 |
Total adjustments | (5,898) | 7,224 |
Net cash and cash equivalents used in operating activities | (1,739) | (3,052) |
Investing activities | ||
Purchases of investments | (21,968) | (10,433) |
Proceeds from sales and maturities of investments | 18,916 | 22,180 |
Proceeds from sale of equipment | 8 | |
Purchases of leasehold improvements and equipment | (3,553) | (2,535) |
Decrease (increase) in restricted cash | 202 | (178) |
Net cash and cash equivalents (used in) provided by investing activities | (6,403) | 9,042 |
Financing activities | ||
Net proceeds from issuance of common stock | 2,344 | 1,482 |
Taxes paid related to net share settlement | (1,988) | (403) |
Payment of acquisition-related contingent consideration | (174) | |
Net cash and cash equivalents provided by financing activities | 182 | 1,079 |
Effect of exchange rate changes on cash | 114 | 8 |
Net increase (decrease) in cash and cash equivalents | (7,846) | 7,077 |
Cash and cash equivalents at beginning of period | 27,043 | 13,746 |
Cash and cash equivalents at end of period | $ 19,197 | $ 20,823 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Basis of Presentation | 1. Basis of Presentation In the opinion of management, the unaudited interim condensed consolidated financial statements of Intevac, Inc. and its subsidiaries (“Intevac” or the “Company”) included herein have been prepared on a basis consistent with the December 31, 2016 audited consolidated financial statements and include all material adjustments, consisting of normal recurring adjustments, necessary to fairly present the information set forth therein. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in Intevac’s Annual Report on Form 10-K 10-K”). The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make judgments, estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ materially from those estimates. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2017 | |
Recent Accounting Pronouncements | 2. Recent Accounting Pronouncements In May 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-09, Compensation—Stock Compensation: Scope of Modification Accounting In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): 2017-08 In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment 2017-04 2017-04, In March 2016, the FASB issued ASU 2016-09 Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In May 2014, the FASB issued ASU 2014-09 (Topic 606) Revenue from Contracts with Customers. We expect to recognize revenue for equipment sales at a point in time following the transfer of control of such products to the customer, which typically occurs upon shipment or delivery depending on the terms of the underlying contracts. Our contracts with customers may include multiple performance obligations. For such arrangements, we expect to allocate revenue to each performance obligation based on its relative standalone selling price. We generally determine standalone selling prices based on the prices charged to customers or using expected cost plus margin. The expected costs associated with our base warranties will continue to be recognized as expense when the equipment is sold. We expect to recognize revenue for cost plus fixed fee and firm fixed priced government contracts over time under the cost-to-cost non-U.S. cost-to-cost The new standard must be adopted by Intevac in our fiscal year beginning December 31, 2017. We intend to adopt the new standard as of December 31, 2017, using the modified retrospective transition method applied to those contracts which were not completed as of that date. Upon adoption, we will recognize the cumulative effect of adopting this guidance as an adjustment to our opening balance of the accumulated deficit. Prior periods will not be retrospectively adjusted. Based on our preliminary assessment, we expect the adoption of Topic 606 will not have a material impact to our consolidated financial statements, including the presentation of revenues in our Consolidated Statements of Operations. We also do not expect the standard to have a material impact on our Consolidated Balance Sheet. The immaterial impact primarily relates to reclassifications among financial statement accounts to align with the new standard. Most notably, contracts in process, net will be reclassified as receivables or contract assets based on amounts billed or unbilled, respectively. Advance payments and billings in excess of costs incurred and deferred revenue will be combined and reclassified as contract liabilities. Our contract balances will be reported in a net contract asset or liability position on a contract-by-contract |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2017 | |
Inventories | 3. Inventories Inventories are stated at the lower of average cost or market and consist of the following: September 30, December 31, 2017 2016 (In thousands) Raw materials $ 16,385 $ 10,290 Work-in-progress 12,452 6,470 Finished goods 3,744 8,116 $ 32,581 $ 24,876 Finished goods inventory consists primarily of completed systems that are undergoing installation and acceptance testing. |
Equity-Based Compensation
Equity-Based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Equity-Based Compensation | 4. Equity-Based Compensation At September 30, 2017, Intevac had equity-based awards outstanding under the 2012 Equity Incentive Plan and the 2004 Equity Incentive Plan (together, the “Plans”) and the 2003 Employee Stock Purchase Plan (the “ESPP”). Intevac’s stockholders approved all of these plans. The Plans permit the grant of incentive or non-statutory The ESPP provides that eligible employees may purchase Intevac’s common stock through payroll deductions at a price equal to 85% of the lower of the fair market value at the entry date 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 six-month Compensation Expense The effect of recording equity-based compensation for the three and nine months ended September 30, 2017 and October 1, 2016 was as follows: Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, (In thousands) Equity-based compensation by type of award: Stock options $ 350 $ 211 $ 808 $ 696 RSUs 731 543 1,943 1,657 ESPP awards 67 151 261 543 Total equity-based compensation $ 1,148 $ 905 $ 3,012 $ 2,896 Equity-based compensation expense is based on awards ultimately expected to vest and such amount has been historically reduced for estimated forfeitures. Beginning January 1, 2017, Intevac accounts for forfeitures as they occur, rather than estimating expected forfeitures. The net cumulative effect of this change was recognized as a $1.1 million increase to the accumulated deficit as of January 1, 2017. Stock Options and ESPP The fair value of stock options and ESPP awards is estimated at the grant date using the Black-Scholes option valuation model. The determination of fair value of stock options and ESPP awards on the date of grant using an option-pricing model is affected by Intevac’s stock price as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, our expected stock price volatility over the term of the awards and actual employee stock option exercise behavior. Option activity as of September 30, 2017 and changes during the nine months ended September 30, 2017 were as follows: Shares Weighted Average Options outstanding at December 31, 2016 2,740,364 $ 7.00 Options granted 413,075 $ 12.33 Options cancelled and forfeited (61,753 ) $ 12.07 Options exercised (115,273 ) $ 6.88 Options outstanding at September 30, 2017 2,976,413 $ 7.64 Options exercisable at September 30, 2017 2,127,940 $ 7.16 Intevac issued 405,659 shares under the ESPP during the nine months ended September 30, 2017. Intevac estimated the weighted-average fair value of stock options and employee stock purchase rights using the following weighted-average assumptions: Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, Stock Options: Weighted-average fair value of grants per share $ 3.89 $ 1.90 $ 4.54 $ 1.75 Expected volatility 42.10 % 40.53 % 40.54 % 44.00 % Risk free interest rate 1.84 % 0.97 % 1.77 % 0.94 % Expected term of options (in years) 4.08 3.96 4.10 4.29 Dividend yield None None None None Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, Stock Purchase Rights: Weighted-average fair value of grants per share $ 2.76 $ 1.69 $ 2.75 $ 1.55 Expected volatility 48.59 % 37.51 % 43.51 % 39.22 % Risk free interest rate 1.36 % 0.63 % 1.22 % 0.75 % Expected term of purchase rights (in years) 0.50 1.00 0.65 1.87 Dividend yield None None None None The computation of the expected volatility assumptions used in the Black-Scholes calculations for new stock option grants and employee stock purchase rights is based on the historical volatility of Intevac’s stock price, measured over a period equal to the expected term of the stock option grant or purchase right. The risk-free interest rate is based on the yield available on U.S. Treasury Strips with an equivalent remaining term. The expected term of employee stock options represents the weighted-average period that the stock options are expected to remain outstanding and was determined based on historical experience of similar awards, giving consideration to the contractual terms of the equity-based awards and vesting schedules. The expected term of purchase rights represents the period of time remaining in the current offering period. The dividend yield assumption is based on Intevac’s history of not paying dividends and the assumption of not paying dividends in the future. RSUs A summary of the RSU activity is as follows: Shares Weighted Average Grant Date Fair Value Non-vested 949,455 $ 4.64 Granted 363,846 $ 11.44 Vested (500,621 ) $ 4.46 Cancelled and forfeited (14,292 ) $ 7.97 Non-vested 798,388 $ 7.79 Time-based RSUs are converted into shares of Intevac common stock upon vesting on a one-for-one Market condition-based RSUs vest upon the achievement of certain market conditions (our stock performance) during a set performance period (typically five years) subject to the grantee’s continued service with Intevac through the date the applicable market condition is achieved. The fair value is based on the values calculated under the Monte Carlo simulation model on the grant date. Compensation cost is not adjusted in future periods for subsequent changes in the expected outcome of market related conditions. The compensation expense is recognized over the derived service period. We granted 125,000 of such awards to certain executive officers in the nine months ended October 1, 2016. These awards have a derived service period of 2.8 years. Intevac estimated the weighted-average fair value of market condition-based RSUs using the following weighted-average assumptions: Nine Months Ended Weighted-average fair value of grants per share $ 2.46 Expected volatility 47.65 % Risk free interest rate 1.35 % Expected term (in years) 4.79 Dividend yield None In fiscal 2016, the annual bonus for certain participants in the Company’s annual incentive plan was settled with RSUs with one year vesting. The Company accrued for the payment of bonuses at the expected company-wide payout percentage amount at October 1, 2016, which amounts were less than the target bonus amounts for each participant. The bonus accrual was classified as a liability until the number of shares was determined on the date the awards were granted, at which time the Company classified the awards into equity. In February 2017, the annual 2016 bonus for certain participants was settled with RSUs with one-year |
Purchased Intangible Assets
Purchased Intangible Assets | 9 Months Ended |
Sep. 30, 2017 | |
Purchased Intangible Assets | 5. Purchased Intangible Assets Details of finite-lived intangible assets by segment as of September 30, 2017 are as follows. September 30, 2017 Gross Accumulated Net (In thousands) Equipment $ 7,172 $ (5,648 ) $ 1,524 Photonics 1,215 (1,077 ) 138 $ 8,387 $ (6,725 ) $ 1,662 Total amortization expense of finite-lived intangibles for the three and nine months ended September 30, 2017 was $169,000 and $596,000, respectively. As of September 30, 2017, future amortization expense is expected to be as follows. (In thousands) 2017 $ 159 2018 615 2019 615 2020 273 $ 1,662 |
Acquisition-Related Contingent
Acquisition-Related Contingent Consideration | 9 Months Ended |
Sep. 30, 2017 | |
Acquisition-Related Contingent Consideration | 6. Acquisition-Related Contingent Consideration In connection with the acquisition of Solar Implant Technologies, Inc. (“SIT”), Intevac agreed to pay to the selling shareholders in cash a revenue earnout on Intevac’s net revenue from commercial sales of certain products over a specified period up to an aggregate of $9.0 million. Intevac estimated the fair value of this contingent consideration on September 30, 2017 based on probability-based forecasted revenues reflecting Intevac’s own assumptions concerning future revenue from such products. The fair value measurement of contingent consideration is based on significant inputs not observed in the market and thus represents a Level 3 measurement. Any change in fair value of the contingent consideration subsequent to the acquisition date is recognized in income (loss) from operations within the condensed consolidated statement of operations. The following table represents a reconciliation of the change in the fair value measurement of the contingent consideration liability for the three and nine month periods ended September 30, 2017 and October 1, 2016: Three Months Ended Nine Months Ended September 30, 2017 October 1, 2016 September 30, 2017 October 1, 2016 (In thousands) Opening balance $ 859 $ 748 $ 759 $ 890 Changes in fair value (283 ) 52 (181 ) (90 ) Cash payments made (172 ) — (174 ) — Closing balance $ 404 $ 800 $ 404 $ 800 The following table displays the balance sheet classification of the contingent consideration liability account at September 30, 2017 and at December 31, 2016: September 30, December 31, 2017 2016 (In thousands) Other accrued liabilities $ 36 $ 329 Other long-term liabilities 368 430 Total acquisition-related contingent consideration $ 404 $ 759 The following table represents the quantitative range of the significant unobservable inputs used in the calculation of fair value of the continent consideration liability as of September 30, 2017. Significant increases or decreases in any of these inputs in isolation would result in a significantly lower or higher fair value measurement. Quantitative Information about Level 3 Fair Value Measurements at September 30, 2017 Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (In thousands, except for percentages) Revenue Earnout $ 404 Discounted Weighted average cost of capital Probability weighting of achieving revenue forecasts 11.9% 10.0% - 80.0% (30.0%) |
Warranty
Warranty | 9 Months Ended |
Sep. 30, 2017 | |
Warranty | 7. Warranty Intevac provides for the estimated cost of warranty when revenue is recognized. Intevac’s warranty is per contract terms and for its disk manufacturing, solar photovoltaic (“PV”) manufacturing and display cover panel (“DCP”) manufacturing systems the warranty typically ranges between 12 and 24 months from customer acceptance. During this warranty period any defective non-consumable On the condensed consolidated balance sheets, the short-term portion of the warranty provision is included in other accrued liabilities, while the long-term portion is included in other long-term liabilities. The expense associated with product warranties issued or adjusted is included in cost of net revenues on the condensed consolidated statements of operations. The following table displays the activity in the warranty provision account for the three and nine months ended September 30, 2017 and October 1, 2016: Three Months Ended Nine Months Ended September 30, 2017 October 1, 2016 September 30, 2017 October 1, 2016 (In thousands) Opening balance $ 1,220 $ 592 $ 1,007 $ 982 Expenditures incurred under warranties (360 ) (80 ) (640 ) (384 ) Accruals for product warranties issued during the reporting period 169 320 675 494 Adjustments to previously existing warranty accruals 106 (110 ) 93 (370 ) Closing balance $ 1,135 $ 722 $ 1,135 $ 722 The following table displays the balance sheet classification of the warranty provision account at September 30, 2017 and at December 31, 2016: September 30, December 31, (In thousands) Other accrued liabilities $ 915 $ 829 Other long-term liabilities 220 178 Total warranty provision $ 1,135 $ 1,007 |
Guarantees
Guarantees | 9 Months Ended |
Sep. 30, 2017 | |
Guarantees | 8. Guarantees Officer and Director Indemnifications As permitted or required under Delaware law and to the maximum extent allowable under that law, Intevac has certain obligations to indemnify its current and former officers and directors for certain events or occurrences while the officer or director is, or was, serving at Intevac’s request in such capacity. These indemnification obligations are valid as long as the director or officer acted in good faith and in a manner the person reasonably believed to be in or not opposed to the best interests of the Company and, with respect to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful. The maximum potential amount of future payments Intevac could be required to make under these indemnification obligations is unlimited; however, Intevac has a director and officer insurance policy that mitigates Intevac’s exposure and enables Intevac to recover a portion of any future amounts paid. As a result of Intevac’s insurance policy coverage, Intevac believes the estimated fair value of these indemnification obligations is not material. Other Indemnifications As is customary in Intevac’s industry, many of Intevac’s contracts provide remedies to certain third parties such as defense, settlement, or payment of judgments for intellectual property claims related to the use of its products. Such indemnification obligations may not be subject to maximum loss clauses. Historically, payments made related to these indemnifications have been immaterial. Letters of Credit As of September 30, 2017, we had letters of credit and bank guarantees outstanding totaling $1.4 million, including a standby letter of credit outstanding under the Santa Clara, California facility lease and various other guarantees with our bank. These letters of credit and bank guarantees are collateralized by $1.4 million of restricted cash. |
Cash, Cash Equivalents and Inve
Cash, Cash Equivalents and Investments | 9 Months Ended |
Sep. 30, 2017 | |
Cash, Cash Equivalents and Investments | 9. Cash, Cash Equivalents and Investments Cash and cash equivalents, short-term investments and long-term investments consist of: September 30, 2017 Amortized Unrealized Unrealized Fair Value (In thousands) Cash and cash equivalents: Cash $ 14,159 $ — $ — $ 14,159 Money market funds 5,038 — — 5,038 Total cash and cash equivalents $ 19,197 $ — $ — $ 19,197 Short-term investments: Certificates of deposit $ 4,498 $ 1 $ 1 $ 4,498 Commercial paper 1,990 — — 1,990 Corporate bonds and medium-term notes 6,252 1 5 6,248 Municipal bonds 1,004 — 3 1,001 U.S. treasury and agency securities 4,300 — — 4,300 Total short-term investments $ 18,044 $ 2 $ 9 $ 18,037 Long-term investments: Corporate bonds and medium-term notes $ 3,576 $ — $ 3 $ 3,573 U.S. treasury and agency securities 2,596 — 4 2,592 Total long-term investments $ 6,172 $ — $ 7 $ 6,165 Total cash, cash equivalents, and investments $ 43,413 $ 2 $ 16 $ 43,399 December 31, 2016 Amortized Unrealized Unrealized Fair Value (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 The contractual maturities of available-for-sale Amortized Fair Value (In thousands) Due in one year or less $ 23,082 $ 23,075 Due after one through two years 6,172 6,165 $ 29,254 $ 29,240 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 September 30, 2017. September 30, 2017 In Loss Position for Less than 12 Months In Loss Position for Fair Value Gross Unrealized Fair Value Gross Unrealized (In thousands) Certificates of deposit $ 1,249 $ 1 $ — $ — Corporate bonds and medium-term notes 5,882 7 1,200 1 Municipal bonds 504 1 497 2 U.S. treasury and agency securities 4,118 4 — — $ 11,753 $ 13 $ 1,697 $ 3 All prices for the fixed maturity securities including U.S. Treasury and agency securities, certificates of deposit, 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 for a security in an orderly sale. 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 Fair Value Measurements at September 30, 2017 Total Level 1 Level 2 (In thousands) Recurring fair value measurements: Available-for-sale Money market funds $ 5,038 $ 5,038 $ — U.S. treasury and agency securities 6,892 4,865 2,027 Certificates of deposit 4,498 — 4,498 Commercial paper 1,990 — 1,990 Corporate bonds and medium-term notes 9,821 — 9,821 Municipal bonds 1,001 — 1,001 Total recurring fair value measurements $ 29,240 $ 9,903 $ 19,337 |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments | 10. Derivative Instruments The Company uses foreign currency forward contracts to mitigate variability in gains and losses generated from the re-measurement re-measurement The following table summarizes the Company’s outstanding derivative instruments on a gross basis as recorded in its condensed consolidated balance sheets as of September 30, 2017 and December 31, 2016: Notional Amounts Derivative Liabilities Derivative Instrument September 30 December 31, September 30, December 31, Balance Sheet Line Fair Value Balance Sheet Line Fair Value (in thousands) Undesignated Hedges: Forward Foreign Currency Contracts $ 1,418 $ 1,146 (a ) $ 2 (a ) $ 8 Total Hedges $ 1,418 $ 1,146 $ 2 $ 8 (a) Other accrued liabilities |
Equity
Equity | 9 Months Ended |
Sep. 30, 2017 | |
Equity | 11. Equity Stock Repurchase Program On November 21, 2013, Intevac’s Board of Directors approved a stock repurchase program authorizing up to $30.0 million in repurchases. At September 30, 2017, $1.5 million remains available for future stock repurchases under the repurchase program. Intevac did not make any stock repurchases during the three and nine months ended September 30, 2017 and October 1, 2016, respectively. Intevac records treasury stock purchases under the cost method using the first-in, first-out paid-in paid-in Accumulated Other Comprehensive Income The changes in accumulated other comprehensive income by component for the three and nine months ended September 30, 2017 and October 1, 2016, are as follows. Three Months Ended Nine Months Ended September 30, 2017 Foreign Unrealized available-for-sale Total Foreign Unrealized available-for-sale Total (In thousands) Beginning balance $ 418 $ (19 ) $ 399 $ 343 $ (22 ) $ 321 Other comprehensive income before reclassification 39 5 44 114 8 122 Amounts reclassified from other comprehensive income — — — — — — Net current-period other comprehensive income 39 5 44 114 8 122 Ending balance $ 457 $ (14 ) $ 443 $ 457 $ (14 ) $ 443 Three Months Ended Nine Months Ended October 1, 2016 Foreign Unrealized available-for-sale Total Foreign Unrealized available-for-sale Total (In thousands) Beginning balance $ 474 $ 17 $ 491 $ 452 $ (40 ) $ 412 Other comprehensive income (loss) before reclassification (17 ) (16 ) (33 ) 5 41 46 Amounts reclassified from other comprehensive income — — — — — — Net current-period other comprehensive income (loss) (17 ) (16 ) (33 ) 5 41 46 Ending balance $ 457 $ 1 $ 458 $ 457 $ 1 $ 458 |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Net Income (Loss) Per Share | 12. Net Income (Loss) Per Share The following table sets forth the computation of basic and diluted net income (loss) per share: Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, (In thousands, except per share amounts) Net income (loss) $ 1,230 $ (481 ) $ 4,159 $ (10,276 ) Weighted-average shares – basic 21,714 20,869 21,475 20,704 Effect of dilutive potential common shares 1,256 — 1,514 — Weighted-average shares – diluted 22,970 20,869 22,989 20,704 Net income (loss) per share – basic $ 0.06 $ (0.02 ) $ 0.19 $ (0.50 ) Net income (loss) per share –diluted $ 0.05 $ (0.02 ) $ 0.18 $ (0.50 ) The following potentially dilutive securities were excluded (as common stock equivalents) from the computation of diluted net income (loss) per share for the periods presented as their effect would have been antidilutive: Three Months Ended Nine Months Ended September 30, 2017 October 1, 2016 September 30, 2017 October 1, 2016 (In thousands) Stock options to purchase common stock 826 2,743 834 2,743 RSUs — 955 — 955 Employee stock purchase plan — 82 — 82 |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting | 13. Segment Reporting 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 September 30, 2017 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 Information for each reportable segment for the three and nine months ended September 30, 2017 and October 1, 2016 is as follows: Net Revenues Three Months Ended Nine Months Ended September 30, 2017 October 1, 2016 September 30, 2017 October 1, 2016 (In thousands) Thin-film Equipment $ 17,177 $ 14,272 $ 61,087 $ 25,941 Photonics 9,549 8,287 26,990 25,201 Total segment net revenues $ 26,726 $ 22,559 $ 88,077 $ 51,142 Operating Income (Loss) Three Months Ended Nine Months Ended September 30, 2017 October 1, 2016 September 30, 2017 October 1, 2016 (In thousands) Thin-film Equipment $ 1,213 $ (998 ) $ 4,821 $ (10,117 ) Photonics 1,417 1,737 3,646 3,656 Total segment operating income (loss) 2,630 739 8,467 (6,461 ) Unallocated costs (1,362 ) (1,063 ) (3,768 ) (3,986 ) Income (loss) from operations 1,268 (324 ) 4,699 (10,447 ) Interest income and other income (expense), net 28 60 265 184 Income (loss) before income taxes $ 1,296 $ (264 ) $ 4,964 $ (10,263 ) Total assets for each reportable segment as of September 30, 2017 and December 31, 2016 are as follows: Assets September 30, December 31, (In thousands) Thin-film Equipment $ 52,620 $ 39,503 Photonics 16,563 16,071 Total segment assets 69,183 55,574 Cash, cash equivalents and investments 43,399 48,238 Restricted cash 1,400 1,602 Deferred income taxes 4 3 Other current assets 1,024 997 Common property, plant and equipment 1,698 1,039 Other assets 724 871 Consolidated total assets $ 117,432 $ 108,324 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Taxes | 14. Income Taxes Intevac recorded income tax provisions of $66,000 and $805,000 for the three and nine months ended September 30, 2017, respectively, and $217,000 and $13,000 for the three and nine months ended October 1, 2016, respectively. The income tax provision for the nine months ended September 30, 2017 includes $506,000 for withholding taxes on royalties payable to the United States from Intevac’s Singapore subsidiary and $200,000 for audit considerations in foreign jurisdictions, both recorded as discrete items. The income tax provisions for the three and nine month periods are based upon estimates of annual income (loss), annual permanent differences and statutory tax rates in the various jurisdictions in which Intevac operates. Intevac did not recognize benefits on the U.S. net operating loss for the three and nine month period ended September 30, 2017 due to having full valuation allowances on the U.S. deferred tax assets. Intevac did not recognize benefits on the U.S. net operating loss or on the Singapore net operating loss for the three and nine month period ended October 1, 2016 due to having full valuation allowances on the U.S. deferred tax assets and on the Singapore deferred tax assets. Intevac’s tax rate differs from the applicable statutory rates due primarily to establishment of a valuation allowance, the utilization of deferred and current credits and the effect of permanent differences and adjustments of prior permanent differences. Intevac’s future effective income tax rate depends on various factors, including the level of Intevac’s projected earnings, the geographic composition of worldwide earnings, tax regulations governing each region, net operating loss carry-forwards, availability of tax credits and the effectiveness of Intevac’s tax planning strategies. Management carefully monitors these factors and timely adjusts the effective income tax rate. 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. The contested tax deposits of $724,000 at September 30, 2017 and $871,000 at December 31, 2016 are included in other long-term assets on the condensed consolidated balance sheets. 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. Presently, there are no other active income tax examinations in the jurisdictions where Intevac operates. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Contingencies | 15. Contingencies From time to time, Intevac may have certain contingent liabilities that arise in the ordinary course of its business activities. Intevac accounts for contingent liabilities when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Summary of Inventories | Inventories are stated at the lower of average cost or market and consist of the following: September 30, December 31, 2017 2016 (In thousands) Raw materials $ 16,385 $ 10,290 Work-in-progress 12,452 6,470 Finished goods 3,744 8,116 $ 32,581 $ 24,876 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Effect of Recording Equity-Based Compensation | The effect of recording equity-based compensation for the three and nine months ended September 30, 2017 and October 1, 2016 was as follows: Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, (In thousands) Equity-based compensation by type of award: Stock options $ 350 $ 211 $ 808 $ 696 RSUs 731 543 1,943 1,657 ESPP awards 67 151 261 543 Total equity-based compensation $ 1,148 $ 905 $ 3,012 $ 2,896 |
Option Activity and Changes | Option activity as of September 30, 2017 and changes during the nine months ended September 30, 2017 were as follows: Shares Weighted Average Options outstanding at December 31, 2016 2,740,364 $ 7.00 Options granted 413,075 $ 12.33 Options cancelled and forfeited (61,753 ) $ 12.07 Options exercised (115,273 ) $ 6.88 Options outstanding at September 30, 2017 2,976,413 $ 7.64 Options exercisable at September 30, 2017 2,127,940 $ 7.16 |
Employee Stock Options Weighted-Average Assumptions | Intevac estimated the weighted-average fair value of stock options and employee stock purchase rights using the following weighted-average assumptions: Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, Stock Options: Weighted-average fair value of grants per share $ 3.89 $ 1.90 $ 4.54 $ 1.75 Expected volatility 42.10 % 40.53 % 40.54 % 44.00 % Risk free interest rate 1.84 % 0.97 % 1.77 % 0.94 % Expected term of options (in years) 4.08 3.96 4.10 4.29 Dividend yield None None None None Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, Stock Purchase Rights: Weighted-average fair value of grants per share $ 2.76 $ 1.69 $ 2.75 $ 1.55 Expected volatility 48.59 % 37.51 % 43.51 % 39.22 % Risk free interest rate 1.36 % 0.63 % 1.22 % 0.75 % Expected term of purchase rights (in years) 0.50 1.00 0.65 1.87 Dividend yield None None None None |
Summary of Restricted Stock Units Activity | A summary of the RSU activity is as follows: Shares Weighted Average Grant Date Fair Value Non-vested 949,455 $ 4.64 Granted 363,846 $ 11.44 Vested (500,621 ) $ 4.46 Cancelled and forfeited (14,292 ) $ 7.97 Non-vested 798,388 $ 7.79 |
Weighted Average Fair Value of Market Condition Based RSUs | Intevac estimated the weighted-average fair value of market condition-based RSUs using the following weighted-average assumptions: Nine Months Ended Weighted-average fair value of grants per share $ 2.46 Expected volatility 47.65 % Risk free interest rate 1.35 % Expected term (in years) 4.79 Dividend yield None |
Purchased Intangible Assets (Ta
Purchased Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Details of Finite-lived Intangible Assets by Segment | Details of finite-lived intangible assets by segment as of September 30, 2017 are as follows. September 30, 2017 Gross Accumulated Net (In thousands) Equipment $ 7,172 $ (5,648 ) $ 1,524 Photonics 1,215 (1,077 ) 138 $ 8,387 $ (6,725 ) $ 1,662 |
Future Amortization Expense | As of September 30, 2017, future amortization expense is expected to be as follows. (In thousands) 2017 $ 159 2018 615 2019 615 2020 273 $ 1,662 |
Acquisition-Related Contingen25
Acquisition-Related Contingent Consideration (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Reconciliation of Change in Fair Value Measurement of Contingent Consideration Liability | The following table represents a reconciliation of the change in the fair value measurement of the contingent consideration liability for the three and nine month periods ended September 30, 2017 and October 1, 2016: Three Months Ended Nine Months Ended September 30, 2017 October 1, 2016 September 30, 2017 October 1, 2016 (In thousands) Opening balance $ 859 $ 748 $ 759 $ 890 Changes in fair value (283 ) 52 (181 ) (90 ) Cash payments made (172 ) — (174 ) — Closing balance $ 404 $ 800 $ 404 $ 800 |
Balance Sheet Classification of Contingent Consideration Liability | The following table displays the balance sheet classification of the contingent consideration liability account at September 30, 2017 and at December 31, 2016: September 30, December 31, 2017 2016 (In thousands) Other accrued liabilities $ 36 $ 329 Other long-term liabilities 368 430 Total acquisition-related contingent consideration $ 404 $ 759 |
Quantitative Information of Significant Unobservable Inputs of Contingent Consideration Liability | The following table represents the quantitative range of the significant unobservable inputs used in the calculation of fair value of the continent consideration liability as of September 30, 2017. Significant increases or decreases in any of these inputs in isolation would result in a significantly lower or higher fair value measurement. Quantitative Information about Level 3 Fair Value Measurements at September 30, 2017 Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (In thousands, except for percentages) Revenue Earnout $ 404 Discounted Weighted average cost of capital Probability weighting of achieving revenue forecasts 11.9% 10.0% - 80.0% (30.0%) |
Warranty (Tables)
Warranty (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Activity in Warranty Provision Account | The following table displays the activity in the warranty provision account for the three and nine months ended September 30, 2017 and October 1, 2016: Three Months Ended Nine Months Ended September 30, 2017 October 1, 2016 September 30, 2017 October 1, 2016 (In thousands) Opening balance $ 1,220 $ 592 $ 1,007 $ 982 Expenditures incurred under warranties (360 ) (80 ) (640 ) (384 ) Accruals for product warranties issued during the reporting period 169 320 675 494 Adjustments to previously existing warranty accruals 106 (110 ) 93 (370 ) Closing balance $ 1,135 $ 722 $ 1,135 $ 722 The following table displays the balance sheet classification of the warranty provision account at September 30, 2017 and at December 31, 2016: September 30, December 31, (In thousands) Other accrued liabilities $ 915 $ 829 Other long-term liabilities 220 178 Total warranty provision $ 1,135 $ 1,007 |
Cash, Cash Equivalents and In27
Cash, Cash Equivalents and Investments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Cash, Cash Equivalents and Short-Term Investments and Long-Term Investments | Cash and cash equivalents, short-term investments and long-term investments consist of: September 30, 2017 Amortized Unrealized Unrealized Fair Value (In thousands) Cash and cash equivalents: Cash $ 14,159 $ — $ — $ 14,159 Money market funds 5,038 — — 5,038 Total cash and cash equivalents $ 19,197 $ — $ — $ 19,197 Short-term investments: Certificates of deposit $ 4,498 $ 1 $ 1 $ 4,498 Commercial paper 1,990 — — 1,990 Corporate bonds and medium-term notes 6,252 1 5 6,248 Municipal bonds 1,004 — 3 1,001 U.S. treasury and agency securities 4,300 — — 4,300 Total short-term investments $ 18,044 $ 2 $ 9 $ 18,037 Long-term investments: Corporate bonds and medium-term notes $ 3,576 $ — $ 3 $ 3,573 U.S. treasury and agency securities 2,596 — 4 2,592 Total long-term investments $ 6,172 $ — $ 7 $ 6,165 Total cash, cash equivalents, and investments $ 43,413 $ 2 $ 16 $ 43,399 December 31, 2016 Amortized Unrealized Unrealized Fair Value (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 |
Contractual Maturities of Available-for-Sale Securities | The contractual maturities of available-for-sale Amortized Fair Value (In thousands) Due in one year or less $ 23,082 $ 23,075 Due after one through two years 6,172 6,165 $ 29,254 $ 29,240 |
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 September 30, 2017. September 30, 2017 In Loss Position for Less than 12 Months In Loss Position for Fair Value Gross Unrealized Fair Value Gross Unrealized (In thousands) Certificates of deposit $ 1,249 $ 1 $ — $ — Corporate bonds and medium-term notes 5,882 7 1,200 1 Municipal bonds 504 1 497 2 U.S. treasury and agency securities 4,118 4 — — $ 11,753 $ 13 $ 1,697 $ 3 |
Fair Value Hierarchy of Available-for-Sale Securities Measured at Fair Value on Recurring Basis | The following table represents the fair value hierarchy of Intevac’s available-for-sale Fair Value Measurements at September 30, 2017 Total Level 1 Level 2 (In thousands) Recurring fair value measurements: Available-for-sale Money market funds $ 5,038 $ 5,038 $ — U.S. treasury and agency securities 6,892 4,865 2,027 Certificates of deposit 4,498 — 4,498 Commercial paper 1,990 — 1,990 Corporate bonds and medium-term notes 9,821 — 9,821 Municipal bonds 1,001 — 1,001 Total recurring fair value measurements $ 29,240 $ 9,903 $ 19,337 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Summary of Outstanding Derivative Instruments on Gross Basis as Recorded in Consolidated Balance Sheets | The following table summarizes the Company’s outstanding derivative instruments on a gross basis as recorded in its condensed consolidated balance sheets as of September 30, 2017 and December 31, 2016: Notional Amounts Derivative Liabilities Derivative Instrument September 30 December 31, September 30, December 31, Balance Sheet Line Fair Value Balance Sheet Line Fair Value (in thousands) Undesignated Hedges: Forward Foreign Currency Contracts $ 1,418 $ 1,146 (a ) $ 2 (a ) $ 8 Total Hedges $ 1,418 $ 1,146 $ 2 $ 8 (a) Other accrued liabilities |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Change in Accumulated Other Comprehensive Income by Component | The changes in accumulated other comprehensive income by component for the three and nine months ended September 30, 2017 and October 1, 2016, are as follows. Three Months Ended Nine Months Ended September 30, 2017 Foreign Unrealized available-for-sale Total Foreign Unrealized available-for-sale Total (In thousands) Beginning balance $ 418 $ (19 ) $ 399 $ 343 $ (22 ) $ 321 Other comprehensive income before reclassification 39 5 44 114 8 122 Amounts reclassified from other comprehensive income — — — — — — Net current-period other comprehensive income 39 5 44 114 8 122 Ending balance $ 457 $ (14 ) $ 443 $ 457 $ (14 ) $ 443 Three Months Ended Nine Months Ended October 1, 2016 Foreign Unrealized available-for-sale Total Foreign Unrealized available-for-sale Total (In thousands) Beginning balance $ 474 $ 17 $ 491 $ 452 $ (40 ) $ 412 Other comprehensive income (loss) before reclassification (17 ) (16 ) (33 ) 5 41 46 Amounts reclassified from other comprehensive income — — — — — — Net current-period other comprehensive income (loss) (17 ) (16 ) (33 ) 5 41 46 Ending balance $ 457 $ 1 $ 458 $ 457 $ 1 $ 458 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Computation of Basic and Diluted Net Income (Loss) Per Share | The following table sets forth the computation of basic and diluted net income (loss) per share: Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, (In thousands, except per share amounts) Net income (loss) $ 1,230 $ (481 ) $ 4,159 $ (10,276 ) Weighted-average shares – basic 21,714 20,869 21,475 20,704 Effect of dilutive potential common shares 1,256 — 1,514 — Weighted-average shares – diluted 22,970 20,869 22,989 20,704 Net income (loss) per share – basic $ 0.06 $ (0.02 ) $ 0.19 $ (0.50 ) Net income (loss) per share –diluted $ 0.05 $ (0.02 ) $ 0.18 $ (0.50 ) |
Antidilutive Securities Excluded from Computation of Diluted Net Income (Loss) Per Share | The following potentially dilutive securities were excluded (as common stock equivalents) from the computation of diluted net income (loss) per share for the periods presented as their effect would have been antidilutive: Three Months Ended Nine Months Ended September 30, 2017 October 1, 2016 September 30, 2017 October 1, 2016 (In thousands) Stock options to purchase common stock 826 2,743 834 2,743 RSUs — 955 — 955 Employee stock purchase plan — 82 — 82 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Information for Each Reportable Segment | Information for each reportable segment for the three and nine months ended September 30, 2017 and October 1, 2016 is as follows: Net Revenues Three Months Ended Nine Months Ended September 30, 2017 October 1, 2016 September 30, 2017 October 1, 2016 (In thousands) Thin-film Equipment $ 17,177 $ 14,272 $ 61,087 $ 25,941 Photonics 9,549 8,287 26,990 25,201 Total segment net revenues $ 26,726 $ 22,559 $ 88,077 $ 51,142 Operating Income (Loss) Three Months Ended Nine Months Ended September 30, 2017 October 1, 2016 September 30, 2017 October 1, 2016 (In thousands) Thin-film Equipment $ 1,213 $ (998 ) $ 4,821 $ (10,117 ) Photonics 1,417 1,737 3,646 3,656 Total segment operating income (loss) 2,630 739 8,467 (6,461 ) Unallocated costs (1,362 ) (1,063 ) (3,768 ) (3,986 ) Income (loss) from operations 1,268 (324 ) 4,699 (10,447 ) Interest income and other income (expense), net 28 60 265 184 Income (loss) before income taxes $ 1,296 $ (264 ) $ 4,964 $ (10,263 ) |
Assets for Each Reportable Segment | Total assets for each reportable segment as of September 30, 2017 and December 31, 2016 are as follows: Assets September 30, December 31, (In thousands) Thin-film Equipment $ 52,620 $ 39,503 Photonics 16,563 16,071 Total segment assets 69,183 55,574 Cash, cash equivalents and investments 43,399 48,238 Restricted cash 1,400 1,602 Deferred income taxes 4 3 Other current assets 1,024 997 Common property, plant and equipment 1,698 1,039 Other assets 724 871 Consolidated total assets $ 117,432 $ 108,324 |
Recent Accounting Pronounceme32
Recent Accounting Pronouncements - Additional Information (Detail) $ in Millions | Jan. 01, 2017USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect of change in accumulated deficit | $ 1.1 |
Inventories Stated at Lower of
Inventories Stated at Lower of Average Cost or Market (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Inventory [Line Items] | ||
Raw materials | $ 16,385 | $ 10,290 |
Work-in-progress | 12,452 | 6,470 |
Finished goods | 3,744 | 8,116 |
Inventories | $ 32,581 | $ 24,876 |
Equity-Based Compensation - Add
Equity-Based Compensation - Additional information (Detail) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Feb. 28, 2017Employee$ / sharesshares | Feb. 29, 2016Employee$ / sharesshares | Oct. 01, 2016USD ($) | Sep. 30, 2017USD ($)shares | Oct. 01, 2016USD ($)shares | Jan. 01, 2017USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Purchase of common stock through payroll deductions | 85.00% | |||||
Offering periods | 2 years | |||||
Purchase intervals of a series | 6 months | |||||
Maximum employee salary withholdings for purchase of common stock under the terms of the ESPP | 15.00% | |||||
Cumulative effect of change in accumulated deficit | $ | $ 1,100,000 | |||||
Number of shares issued under employee stock purchase plan | 405,659 | |||||
RSU conversion ratio | 100.00% | |||||
Annual incentive plan stock awards granted | 413,075 | |||||
Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of share awards granted | 363,846 | |||||
Annual incentive plan equity-based compensation expense | $ | $ 120,000 | $ 102,000 | $ 364,000 | |||
Number of participants in restricted stock grants awarded | Employee | 33 | 34 | ||||
Annual incentive plan stock awards granted | 134,000 | 266,000 | ||||
Weighted-average fair value of grants per share | $ / shares | $ 9.63 | $ 4.40 | ||||
Restricted Stock Units (RSUs) | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award, vesting period | 3 years | |||||
Restricted Stock Units (RSUs) | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award, vesting period | 4 years | |||||
Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of share awards granted | 125,000 | |||||
Derived service period | 2 years 9 months 18 days |
Effect of Recording Equity-Base
Effect of Recording Equity-Based Compensation (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Sep. 30, 2017 | Oct. 01, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-based compensation | $ 1,148 | $ 905 | $ 3,012 | $ 2,896 |
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-based compensation | 350 | 211 | 808 | 696 |
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-based compensation | 731 | 543 | 1,943 | 1,657 |
Employee stock purchase plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-based compensation | $ 67 | $ 151 | $ 261 | $ 543 |
Option Activity and Changes (De
Option Activity and Changes (Detail) | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Shares | |
Options outstanding at December 31, 2016 | shares | 2,740,364 |
Options granted | shares | 413,075 |
Options cancelled and forfeited | shares | (61,753) |
Options exercised | shares | (115,273) |
Options outstanding at September 30, 2017 | shares | 2,976,413 |
Options exercisable at September 30, 2017 | shares | 2,127,940 |
Weighted Average Exercise Price | |
Options outstanding at December 31, 2016 | $ / shares | $ 7 |
Options granted | $ / shares | 12.33 |
Options cancelled and forfeited | $ / shares | 12.07 |
Options exercised | $ / shares | 6.88 |
Options outstanding at September 30, 2017 | $ / shares | 7.64 |
Options exercisable at September 30, 2017 | $ / shares | $ 7.16 |
Weighted-Average Fair Value of
Weighted-Average Fair Value of Stock Options and Employee Stock Purchase Rights using Weighted-Average Assumptions (Detail) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Sep. 30, 2017 | Oct. 01, 2016 | |
Stock Options | ||||
Weighted-average assumptions | ||||
Weighted-average fair value of grants per share | $ 3.89 | $ 1.90 | $ 4.54 | $ 1.75 |
Expected volatility | 42.10% | 40.53% | 40.54% | 44.00% |
Risk free interest rate | 1.84% | 0.97% | 1.77% | 0.94% |
Expected term of options (in years) | 4 years 29 days | 3 years 11 months 15 days | 4 years 1 month 6 days | 4 years 3 months 15 days |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Stock Purchase Rights | ||||
Weighted-average assumptions | ||||
Weighted-average fair value of grants per share | $ 2.76 | $ 1.69 | $ 2.75 | $ 1.55 |
Expected volatility | 48.59% | 37.51% | 43.51% | 39.22% |
Risk free interest rate | 1.36% | 0.63% | 1.22% | 0.75% |
Expected term of options (in years) | 6 months | 1 year | 7 months 24 days | 1 year 10 months 14 days |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Summary of Restricted Stock Uni
Summary of Restricted Stock Units Activity (Detail) - Restricted Stock Units (RSUs) | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Shares | |
Non-vested RSUs at December 31, 2016 | shares | 949,455 |
Granted | shares | 363,846 |
Vested | shares | (500,621) |
Cancelled and forfeited | shares | (14,292) |
Non-vested RSUs at September 30, 2017 | shares | 798,388 |
Weighted Average Grant Date Fair Value | |
Non-vested RSUs at December 31, 2016 | $ / shares | $ 4.64 |
Granted | $ / shares | 11.44 |
Vested | $ / shares | 4.46 |
Cancelled and forfeited | $ / shares | 7.97 |
Non-vested RSUs at September 30, 2017 | $ / shares | $ 7.79 |
Weighted Average Fair Value of
Weighted Average Fair Value of Market Condition Based RSUs (Detail) - Restricted Stock | 9 Months Ended |
Oct. 01, 2016$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted-average fair value of grants per share | $ 2.46 |
Expected volatility | 47.65% |
Risk free interest rate | 1.35% |
Expected term (in years) | 4 years 9 months 15 days |
Dividend yield | 0.00% |
Details of Finite-lived Intangi
Details of Finite-lived Intangible Assets by Segment (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived, Gross Carrying Amount | $ 8,387 | |
Accumulated Amortization | (6,725) | $ (6,129) |
Finite Lived, Net Carrying Amount | 1,662 | $ 2,258 |
Thin-film Equipment Segment | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived, Gross Carrying Amount | 7,172 | |
Accumulated Amortization | (5,648) | |
Finite Lived, Net Carrying Amount | 1,524 | |
Photonics | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived, Gross Carrying Amount | 1,215 | |
Accumulated Amortization | (1,077) | |
Finite Lived, Net Carrying Amount | $ 138 |
Purchased Intangible Assets - A
Purchased Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017 | Sep. 30, 2017 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Total amortization expense of finite-lived intangibles | $ 169,000 | $ 596,000 |
Future Amortization Expense (De
Future Amortization Expense (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
2,017 | $ 159 | |
2,018 | 615 | |
2,019 | 615 | |
2,020 | 273 | |
Finite Lived, Net Carrying Amount | $ 1,662 | $ 2,258 |
Acquisition-Related Contingen43
Acquisition-Related Contingent Consideration - Additional Information (Detail) $ in Millions | Nov. 19, 2010USD ($) |
Solar Implant Technologies | Revenue Earnout | |
Business Acquisition [Line Items] | |
Maximum amount of cash potentially earned in contingent compensation arrangements | $ 9 |
Reconciliation of Change in Fai
Reconciliation of Change in Fair Value Measurement of Contingent Consideration Liability (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Sep. 30, 2017 | Oct. 01, 2016 | |
Business Acquisition, Contingent Consideration [Line Items] | ||||
Opening balance | $ 859 | $ 748 | $ 759 | $ 890 |
Changes in fair value | (283) | 52 | (181) | (90) |
Cash payments made | (172) | (174) | ||
Closing balance | $ 404 | $ 800 | $ 404 | $ 800 |
Balance Sheet Classification of
Balance Sheet Classification of Contingent Consideration Liability (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Business Combination, Transactions [Line Items] | ||
Other accrued liabilities | $ 404 | $ 759 |
Other accrued liabilities | ||
Business Combination, Transactions [Line Items] | ||
Other accrued liabilities | 36 | 329 |
Other long-term liabilities | ||
Business Combination, Transactions [Line Items] | ||
Other accrued liabilities | $ 368 | $ 430 |
Quantitative Range of Significa
Quantitative Range of Significant Unobservable Inputs Used in Calculation of Fair Value of Continent Consideration Liability (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Business Acquisition, Contingent Consideration [Line Items] | ||
Fair Value | $ 404 | $ 759 |
Fair Value, Inputs, Level 3 | Revenue Earnout | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Valuation technique | Discounted cash flow | |
Fair Value | $ 404 | |
Fair Value, Inputs, Level 3 | Revenue Earnout | Weighted Average | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Weighted average cost of capital | 11.90% | |
Probability weighting of achieving revenue forecasts | 30.00% | |
Fair Value, Inputs, Level 3 | Revenue Earnout | Minimum | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Probability weighting of achieving revenue forecasts | 10.00% | |
Fair Value, Inputs, Level 3 | Revenue Earnout | Maximum | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Probability weighting of achieving revenue forecasts | 80.00% |
Warranty - Additional Informati
Warranty - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2017 | |
Warranties [Line Items] | |
Minimum product warranty range | 12 months |
Maximum product warranty range | 24 months |
Warranty Provision Account (Det
Warranty Provision Account (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Sep. 30, 2017 | Oct. 01, 2016 | |
Accrued Warranty [Line Items] | ||||
Opening balance | $ 1,220 | $ 592 | $ 1,007 | $ 982 |
Expenditures incurred under warranties | (360) | (80) | (640) | (384) |
Accruals for product warranties issued during the reporting period | 169 | 320 | 675 | 494 |
Adjustments to previously existing warranty accruals | 106 | (110) | 93 | (370) |
Closing balance | $ 1,135 | $ 722 | $ 1,135 | $ 722 |
Balance Sheet Classification 49
Balance Sheet Classification of Warranty Provision Account (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Jul. 01, 2017 | Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Jan. 02, 2016 |
Product Warranty [Line Items] | ||||||
Other accrued liabilities | $ 915 | $ 829 | ||||
Other long-term liabilities | 220 | 178 | ||||
Total warranty provision | $ 1,135 | $ 1,220 | $ 1,007 | $ 722 | $ 592 | $ 982 |
Guarantees - Additional Informa
Guarantees - Additional Information (Detail) $ in Millions | Sep. 30, 2017USD ($) |
Guarantor Obligations [Line Items] | |
Letters of credit and bank guarantees outstanding, amount | $ 1.4 |
Letters of credit and bank guarantees collateralized by restricted cash | $ 1.4 |
Cash, Cash Equivalents and Shor
Cash, Cash Equivalents and Short-Term Investments and Long-Term Investments (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 43,413 | $ 48,260 |
Unrealized Holdings Gains | 2 | 1 |
Unrealized Holdings Losses | 16 | 23 |
Fair Value | 43,399 | 48,238 |
Cash and Cash Equivalents | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 19,197 | 27,043 |
Fair Value | 19,197 | 27,043 |
Cash and Cash Equivalents | Cash | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 14,159 | 18,726 |
Fair Value | 14,159 | 18,726 |
Cash and Cash Equivalents | Money market funds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 5,038 | 8,317 |
Fair Value | 5,038 | 8,317 |
Short-term Investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 18,044 | 17,610 |
Unrealized Holdings Gains | 2 | |
Unrealized Holdings Losses | 9 | 8 |
Fair Value | 18,037 | 17,602 |
Short-term Investments | Municipal bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,004 | 600 |
Unrealized Holdings Losses | 3 | |
Fair Value | 1,001 | 600 |
Short-term Investments | U.S. treasury and agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 4,300 | 6,432 |
Unrealized Holdings Losses | 1 | |
Fair Value | 4,300 | 6,431 |
Short-term Investments | Corporate bonds and medium-term notes | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 6,252 | 8,586 |
Unrealized Holdings Gains | 1 | |
Unrealized Holdings Losses | 5 | 6 |
Fair Value | 6,248 | 8,580 |
Short-term Investments | Certificate of deposit | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 4,498 | |
Unrealized Holdings Gains | 1 | |
Unrealized Holdings Losses | 1 | |
Fair Value | 4,498 | |
Short-term Investments | Commercial paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,990 | 1,992 |
Unrealized Holdings Losses | 1 | |
Fair Value | 1,990 | 1,991 |
Other Long-term Investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 6,172 | 3,607 |
Unrealized Holdings Gains | 1 | |
Unrealized Holdings Losses | 7 | 15 |
Fair Value | 6,165 | 3,593 |
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 | 2,596 | 597 |
Unrealized Holdings Gains | 1 | |
Unrealized Holdings Losses | 4 | |
Fair Value | 2,592 | 598 |
Other Long-term Investments | Corporate bonds and medium-term notes | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 3,576 | 2,510 |
Unrealized Holdings Losses | 3 | 11 |
Fair Value | $ 3,573 | $ 2,499 |
Contractual Maturities of Avail
Contractual Maturities of Available-For-Sale Securities (Detail) $ in Thousands | Sep. 30, 2017USD ($) |
Amortized Cost | |
Amortized Cost, Due in one year or less | $ 23,082 |
Amortized Cost, Due after one through two years | 6,172 |
Amortized Cost | 29,254 |
Fair Value | |
Fair Value, Due in one year or less | 23,075 |
Fair Value, Due after one through two years | 6,165 |
Fair Value | $ 29,240 |
Fair Market Value of Investment
Fair Market Value of Investments with Unrealized Losses Not Deemed to be Other-Than Temporarily Impaired (Detail) $ in Thousands | Sep. 30, 2017USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Unrealized Loss Position, Less than 12 Months, Fair Value | $ 11,753 |
Unrealized Loss Position, Less than 12 Months, Gross Unrealized Losses | 13 |
Unrealized Loss Position, Greater than 12 Months, Fair Value | 1,697 |
Unrealized Loss Position, Greater than 12 Months, Gross Unrealized Losses | 3 |
Certificate of deposit | |
Schedule of Available-for-sale Securities [Line Items] | |
Unrealized Loss Position, Less than 12 Months, Fair Value | 1,249 |
Unrealized Loss Position, Less than 12 Months, Gross Unrealized Losses | 1 |
Corporate bonds and medium-term notes | |
Schedule of Available-for-sale Securities [Line Items] | |
Unrealized Loss Position, Less than 12 Months, Fair Value | 5,882 |
Unrealized Loss Position, Less than 12 Months, Gross Unrealized Losses | 7 |
Unrealized Loss Position, Greater than 12 Months, Fair Value | 1,200 |
Unrealized Loss Position, Greater than 12 Months, Gross Unrealized Losses | 1 |
Municipal bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
Unrealized Loss Position, Less than 12 Months, Fair Value | 504 |
Unrealized Loss Position, Less than 12 Months, Gross Unrealized Losses | 1 |
Unrealized Loss Position, Greater than 12 Months, Fair Value | 497 |
Unrealized Loss Position, Greater than 12 Months, Gross Unrealized Losses | 2 |
U.S. treasury and agency securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Unrealized Loss Position, Less than 12 Months, Fair Value | 4,118 |
Unrealized Loss Position, Less than 12 Months, Gross Unrealized Losses | $ 4 |
Fair Value Hierarchy of Availab
Fair Value Hierarchy of Available-for-Sale Securities Measured at Fair Value on Recurring Basis (Detail) $ in Thousands | Sep. 30, 2017USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | $ 29,240 |
Fair Value, Measurements, Recurring | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 29,240 |
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 | 5,038 |
Fair Value, Measurements, Recurring | Certificate of deposit | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 4,498 |
Fair Value, Measurements, Recurring | Commercial paper | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 1,990 |
Fair Value, Measurements, Recurring | U.S. treasury and agency securities | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 6,892 |
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 | 9,821 |
Fair Value, Measurements, Recurring | Municipal bonds | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 1,001 |
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 | 9,903 |
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 | 5,038 |
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 | 4,865 |
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 | 19,337 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Certificate of deposit | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 4,498 |
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 | 1,990 |
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 | 2,027 |
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 | 9,821 |
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 | $ 1,001 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2017 | |
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 | Sep. 30, 2017 | Dec. 31, 2016 | |
Derivatives, Fair Value [Line Items] | |||
Notional Amounts | $ 1,418 | $ 1,146 | |
Derivative Liabilities | 2 | 8 | |
Forward foreign currency contracts | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amounts | 1,418 | 1,146 | |
Derivative Liabilities | [1] | $ 2 | $ 8 |
[1] | Other accrued liabilities |
Equity - Additional Information
Equity - Additional Information (Detail) - USD ($) shares in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Oct. 01, 2016 | Sep. 30, 2017 | Oct. 01, 2016 | Nov. 21, 2013 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Stock repurchase authorized amount | $ 30,000,000 | ||||
Stock repurchase remained available for future stock repurchase | $ 1,500,000 | $ 1,500,000 | |||
Stock repurchased | 0 | 0 | 0 | 0 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income by Component (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Sep. 30, 2017 | Oct. 01, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ 73,266 | |||
Other comprehensive income (loss) before reclassification | $ 44 | $ (33) | 122 | $ 46 |
Amounts reclassified from other comprehensive income | 0 | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | 44 | (33) | 122 | 46 |
Ending balance | 81,418 | 81,418 | ||
Foreign currency | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 418 | 474 | 343 | 452 |
Other comprehensive income (loss) before reclassification | 39 | (17) | 114 | 5 |
Amounts reclassified from other comprehensive income | 0 | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | 39 | (17) | 114 | 5 |
Ending balance | 457 | 457 | 457 | 457 |
Unrealized holding losses on available-for-sale investments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (19) | 17 | (22) | (40) |
Other comprehensive income (loss) before reclassification | 5 | (16) | 8 | 41 |
Amounts reclassified from other comprehensive income | 0 | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | 5 | (16) | 8 | 41 |
Ending balance | (14) | 1 | (14) | 1 |
Accumulated other comprehensive income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 399 | 491 | 321 | 412 |
Amounts reclassified from other comprehensive income | 0 | 0 | 0 | 0 |
Ending balance | $ 443 | $ 458 | $ 443 | $ 458 |
Computation of Basic and Dilute
Computation of Basic and Diluted Net Income (Loss) Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Sep. 30, 2017 | Oct. 01, 2016 | |
Schedule Of Computation Of Basic And Diluted Earnings Per Common Share [Line Items] | ||||
Net income (loss) | $ 1,230 | $ (481) | $ 4,159 | $ (10,276) |
Weighted-average shares - basic | 21,714 | 20,869 | 21,475 | 20,704 |
Effect of dilutive potential common shares | 1,256 | 1,514 | ||
Weighted-average shares - diluted | 22,970 | 20,869 | 22,989 | 20,704 |
Net income (loss) per share - basic | $ 0.06 | $ (0.02) | $ 0.19 | $ (0.50) |
Net income (loss) per share - diluted | $ 0.05 | $ (0.02) | $ 0.18 | $ (0.50) |
Antidilutive Securities Exclude
Antidilutive Securities Excluded from Computation of Diluted Net Income (Loss) Per Share (Detail) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Sep. 30, 2017 | Oct. 01, 2016 | |
Stock Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of diluted net income (loss) per share | 826 | 2,743 | 834 | 2,743 |
Restricted Stock Units (RSUs) | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of diluted net income (loss) per share | 955 | 955 | ||
Employee stock purchase plan | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of diluted net income (loss) per share | 82 | 82 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2017Segment | |
Segment Reporting Disclosure [Line Items] | |
Number of reportable segments | 2 |
Allocation of corporate expenses to the segments | 3.00% |
Information for Each Reportable
Information for Each Reportable Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Sep. 30, 2017 | Oct. 01, 2016 | |
Segment Reporting Information [Line Items] | ||||
Total segment net revenues | $ 26,726 | $ 22,559 | $ 88,077 | $ 51,142 |
Income (loss) from operations | 1,268 | (324) | 4,699 | (10,447) |
Interest income and other income (expense), net | 28 | 60 | 265 | 184 |
Income (loss) before income taxes | 1,296 | (264) | 4,964 | (10,263) |
Thin-film Equipment Segment | ||||
Segment Reporting Information [Line Items] | ||||
Total segment net revenues | 17,177 | 14,272 | 61,087 | 25,941 |
Photonics | ||||
Segment Reporting Information [Line Items] | ||||
Total segment net revenues | 9,549 | 8,287 | 26,990 | 25,201 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Income (loss) from operations | 2,630 | 739 | 8,467 | (6,461) |
Operating Segments | Thin-film Equipment Segment | ||||
Segment Reporting Information [Line Items] | ||||
Income (loss) from operations | 1,213 | (998) | 4,821 | (10,117) |
Operating Segments | Photonics | ||||
Segment Reporting Information [Line Items] | ||||
Income (loss) from operations | 1,417 | 1,737 | 3,646 | 3,656 |
Unallocated Amount to Segment | ||||
Segment Reporting Information [Line Items] | ||||
Unallocated costs | $ (1,362) | $ (1,063) | $ (3,768) | $ (3,986) |
Assets for Each Reportable Segm
Assets for Each Reportable Segment (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Cash, cash equivalents and investments | $ 43,399 | $ 48,238 |
Restricted cash | 1,400 | 1,602 |
Deferred income taxes | 4 | 3 |
Other current assets | 1,024 | 997 |
Common property, plant and equipment | 1,698 | 1,039 |
Other assets | 724 | 871 |
Consolidated total assets | 117,432 | 108,324 |
Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated total assets | 69,183 | 55,574 |
Operating Segments | Thin-film Equipment Segment | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated total assets | 52,620 | 39,503 |
Operating Segments | Photonics | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated total assets | $ 16,563 | $ 16,071 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Oct. 01, 2016 | Sep. 30, 2017 | Oct. 01, 2016 | Dec. 31, 2016 | |
Income Taxes [Line Items] | |||||
Provision for income taxes | $ 66,000 | $ 217,000 | $ 805,000 | $ 13,000 | |
Deposit for contested taxes and related interest | 724,000 | 724,000 | $ 871,000 | ||
Foreign Tax Authority | |||||
Income Taxes [Line Items] | |||||
Income tax charge (benefit) | 200,000 | ||||
Foreign Tax Authority | Singapore | |||||
Income Taxes [Line Items] | |||||
Income tax charge (benefit) | 506,000 | ||||
Inland Revenue, Singapore (IRAS) | |||||
Income Taxes [Line Items] | |||||
Deposit for contested taxes and related interest | $ 724,000 | $ 724,000 | $ 871,000 |