Intevac (IVAC) 10-Q 31 Oct 17 2017 Q3 Quarterly report Financial data

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