Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 29, 2018 | Oct. 26, 2018 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 29, 2018 | |
Document Fiscal Year Focus | 2,018 | |
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 | --12-29 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 22,814,493 | |
Entity Emerging Growth Company | false | |
Entity Small Business | true |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 29, 2018 | Dec. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 21,753 | $ 19,941 |
Short-term investments | 17,175 | 15,698 |
Trade and other accounts receivable, net of allowances of $0 at both September 29, 2018 and at December 30, 2017 | 18,835 | 20,474 |
Inventories | 34,679 | 33,792 |
Prepaid expenses and other current assets | 2,610 | 2,524 |
Total current assets | 95,052 | 92,429 |
Property, plant and equipment, net | 11,046 | 12,478 |
Long-term investments | 5,164 | 6,849 |
Restricted cash | 1,569 | 1,000 |
Intangible assets, net of accumulated amortization of $7,345 at September 29, 2018 and $6,884 at December 30, 2017 | 1,042 | 1,503 |
Deferred income taxes and other long-term assets | 744 | 764 |
Total assets | 114,617 | 115,023 |
Current liabilities: | ||
Accounts payable | 5,956 | 3,949 |
Accrued payroll and related liabilities | 4,272 | 6,818 |
Other accrued liabilities | 10,995 | 7,688 |
Customer advances | 11,616 | 11,026 |
Total current liabilities | 32,839 | 29,481 |
Other long-term liabilities | 2,436 | 2,879 |
Stockholders' equity: | ||
Common stock, $0.001 par value | 23 | 22 |
Additional paid-in capital | 182,354 | 177,521 |
Treasury stock, 4,845 shares at both September 29, 2018 and December 30, 2017 | (28,489) | (28,489) |
Accumulated other comprehensive income | 371 | 490 |
Accumulated deficit | (74,917) | (66,881) |
Total stockholders' equity | 79,342 | 82,663 |
Total liabilities and stockholders' equity | $ 114,617 | $ 115,023 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Sep. 29, 2018 | Dec. 30, 2017 |
Net of allowances of trade, note and other accounts receivable | $ 0 | $ 0 |
Net of accumulated amortization of intangible assets | $ 7,345 | $ 6,884 |
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. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Net revenues: | ||||
Total net revenues | $ 19,466 | $ 26,726 | $ 63,538 | $ 88,077 |
Cost of net revenues: | ||||
Total cost of net revenues | 11,980 | 15,428 | 41,416 | 52,261 |
Gross profit | 7,486 | 11,298 | 22,122 | 35,816 |
Operating expenses: | ||||
Research and development | 3,737 | 4,535 | 12,889 | 13,635 |
Selling, general and administrative | 4,842 | 5,495 | 15,382 | 17,482 |
Total operating expenses | 8,579 | 10,030 | 28,271 | 31,117 |
Income (loss) from operations | (1,093) | 1,268 | (6,149) | 4,699 |
Interest income and other income (expense), net | 186 | 28 | 464 | 265 |
Income (loss) before income taxes | (907) | 1,296 | (5,685) | 4,964 |
Provision for income taxes | 192 | 66 | 717 | 805 |
Net income (loss) | $ (1,099) | $ 1,230 | $ (6,402) | $ 4,159 |
Net income (loss) per share: | ||||
Basic | $ (0.05) | $ 0.06 | $ (0.29) | $ 0.19 |
Diluted | $ (0.05) | $ 0.05 | $ (0.29) | $ 0.18 |
Weighted average common shares outstanding: | ||||
Basic | 22,719 | 21,714 | 22,429 | 21,475 |
Diluted | 22,719 | 22,970 | 22,429 | 22,989 |
Systems and components | ||||
Net revenues: | ||||
Total net revenues | $ 17,140 | $ 24,537 | $ 55,947 | $ 82,822 |
Cost of net revenues: | ||||
Total cost of net revenues | 9,765 | 13,402 | 34,362 | 47,419 |
Technology development | ||||
Net revenues: | ||||
Total net revenues | 2,326 | 2,189 | 7,591 | 5,255 |
Cost of net revenues: | ||||
Total cost of net revenues | $ 2,215 | $ 2,026 | $ 7,054 | $ 4,842 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Net income (loss) | $ (1,099) | $ 1,230 | $ (6,402) | $ 4,159 |
Other comprehensive income (loss), before tax | ||||
Change in unrealized net loss on available-for-sale investments | 13 | 5 | 7 | 8 |
Foreign currency translation gains (losses) | (86) | 39 | (126) | 114 |
Other comprehensive income (loss), before tax | (73) | 44 | (119) | 122 |
Income tax (expense) benefit related to items in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | (73) | 44 | (119) | 122 |
Comprehensive income (loss) | $ (1,172) | $ 1,274 | $ (6,521) | $ 4,281 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 29, 2018 | Sep. 30, 2017 | |
Operating activities | ||
Net income (loss) | $ (6,402) | $ 4,159 |
Adjustments to reconcile net income (loss) to net cash and cash equivalents provided by (used in) operating activities: | ||
Depreciation and amortization | 3,587 | 2,877 |
Net amortization (accretion) of investment premiums and discounts | (67) | 53 |
Equity-based compensation | 2,454 | 3,012 |
Change in the fair value of acquisition-related contingent consideration | 8 | (181) |
Deferred income taxes | (1) | |
Loss on disposal of equipment | 442 | |
Changes in operating assets and liabilities | 2,042 | (11,658) |
Total adjustments | 8,466 | (5,898) |
Net cash and cash equivalents provided by (used) in operating activities | 2,064 | (1,739) |
Investing activities | ||
Purchases of investments | (24,640) | (21,968) |
Proceeds from sales and maturities of investments | 24,922 | 18,916 |
Purchases of leasehold improvements and equipment | (2,219) | (3,553) |
Net cash and cash equivalents used in investing activities | (1,937) | (6,605) |
Financing activities | ||
Net proceeds from issuance of common stock | 3,199 | 2,344 |
Taxes paid related to net share settlement | (819) | (1,988) |
Payment of acquisition-related contingent consideration | (174) | |
Net cash and cash equivalents provided by financing activities | 2,380 | 182 |
Effect of exchange rate changes on cash | (126) | 114 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 2,381 | (8,048) |
Cash, cash equivalents and restricted cash at beginning of period | 20,941 | 28,645 |
Cash, cash equivalents and restricted cash at end of period | $ 23,322 | $ 20,597 |
Description of Business and Bas
Description of Business and Basis of Presentation | 9 Months Ended |
Sep. 29, 2018 | |
Description of Business and Basis of Presentation | 1. Description of Business and Basis of Presentation Intevac, Inc. (together with its subsidiaries “Intevac,” the “Company” or “we”) is a provider of vacuum deposition equipment for a wide variety of thin-film applications, and a leading provider of digital night-vision technologies and products to the defense industry. The Company leverages its core capabilities in high-volume manufacturing of small substrates to provide process manufacturing equipment solutions to the hard disk drive (“HDD”), display cover panel (“DCP”), and photovoltaic (“PV”) solar cell industries. Intevac also provides sensors, cameras and systems for government applications such as night vision. Intevac’s customers include manufacturers of hard disk media, DCPs and solar cells as well as the U.S. government and its agencies, allies and contractors. Intevac reports two segments: Thin-film Equipment (“TFE”) and Photonics. In the opinion of management, except for the changes below, the unaudited interim condensed consolidated financial statements of Intevac included herein have been prepared on a basis consistent with the December 30, 2017 audited consolidated financial statements and include all material adjustments, consisting of normal recurring adjustments, necessary to fairly present the information set forth therein. The Company adopted Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers, with a date of the initial application of December 31, 2017. As a result, the Company has changed its accounting policy for revenue recognition as detailed below. 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. 29, 2018 | |
Recent Accounting Pronouncements | 2. Recent Accounting Pronouncements Recently Issued Accounting Standards Not Yet Adopted In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2018-15, Other—Internal-Use 350-40): In February 2018, the FASB issued ASU 2018-02, 2018-02 ASU 2018-02 In February 2016, the FASB issued ASU 2016-02, Intevac leases certain facilities under non-cancelable We plan to adopt the standard as of December 30, 2018, the beginning of fiscal 2019. We will elect the package of practical expedients permitted under the transition guidance within the new standard, which, among other things, allows us to carry forward the historical lease classification. In addition, we are electing the hindsight practical expedient to determine the reasonably certain lease term for existing leases. We will make an accounting policy election to keep leases with an initial term of 12 months or less off of the balance sheet. We will recognize those lease payments in the consolidated statements of operations on a straight-line basis over the lease term. We also plan to elect the practical expedient that will allow us to apply the new lease guidance at its effective date, December 30, 2018, without adjusting the comparative financial statements. We are currently completing the assessment phase of the implementation project and are finalizing our review of the impact of adoption. We expect the adoption of these accounting changes will materially increase our assets and liabilities, but will not have a material impact on our results of operations, equity, or cash flows. Adoption of New Accounting Standard On December 31, 2017, we adopted the new accounting standard ASC 606, Revenue from Contracts with Customers and all the related amendments (“new revenue standard”) to all contracts using the modified retrospective method. We recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of the accumulated deficit. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. We expect the impact of the adoption of the new standard to be immaterial to our net income on an ongoing basis. In our TFE segment, a majority of our equipment sales revenue continues to be recognized when products are shipped from our manufacturing facilities. Revenue recognition for our equipment sales arrangements, which includes systems, technology upgrades, service and spare parts, remains materially consistent with our historical practice. Under the new revenue standard, in our TFE segment, we 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. Intevac recognizes revenue in certain circumstances before delivery has occurred (commonly referred to as bill and hold transactions). In such circumstances, among other things, risk of ownership has passed to the customer, the customer has made a written fixed commitment to purchase the finished goods, the customer has requested the finished goods be held for future delivery as scheduled and designated by them, and no additional performance obligations exist by Intevac. For these transactions, the finished goods are segregated from inventory and normal billing and credit terms granted. Our contracts with customers may include multiple performance obligations. For such arrangements, under the new revenue standard we 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 by using expected cost plus margin. Under the new revenue standard, the expected costs associated with our base warranties continue to be recognized as expense when the equipment is sold. Under the new revenue standard, in our Photonics segment, we recognize revenue for cost plus fixed fee (“CPFF”) and firm fixed priced (“FFP”) government contracts over time under the cost-to-cost non-U.S. cost-to-cost The majority of our contracts in our Photonics segment have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and, therefore, not distinct. Some of our contracts have multiple performance obligations, most commonly due to the contract covering multiple phases of the product lifecycle (development and production). For contracts with multiple performance obligations, we allocate the contract’s transaction price to each performance obligation using our best estimate of the standalone selling price of each distinct good or service in the contract. The primary method used to estimate standalone selling price is the expected cost plus a margin approach, under which we forecast our expected costs of satisfying a performance obligation and then add an appropriate margin for that distinct good or service. Under the new revenue standard, in our Photonics segment, we recognize revenue for homogenous manufactured military products sold to the U.S. government and its contractors over time under the units-of-delivery units-of-delivery The nature of our contracts in our Photonics segment gives rise to several types of variable consideration including tiered pricing. Allocation of contract revenues among Photonics military products, and the timing of the recognition of those revenues, is impacted by agreements with tiered pricing or variable rate structures. We include variable consideration in the estimated transaction price when there is a basis to reasonably estimate the amount of the consideration. These estimates are based on historical experience, anticipated performance and our best judgment at the time. Because of our certainty in estimating these amounts, they are included in the transaction price of our contracts and the associated remaining performance obligations. Accounting for CPFF and FFP contracts and programs involves the use of various techniques to estimate total contract revenue and costs. For these contracts, we estimate the profit on a contract as the difference between the total estimated revenue and expected costs to complete a contract and recognize that profit over the life of the contract. Contract estimates are based on various assumptions to project the outcome of future events. These assumptions include the complexity of the work to be performed; the cost and availability of materials; the performance of subcontractors; and the availability and timing of funding from the customer. As a significant change in one or more of these estimates could affect the profitability of our contracts, we review and update our contract-related estimates regularly. We recognize adjustments in estimated profit on contracts under the cumulative catch-up We recorded a cumulative effect adjustment to the beginning balance of our consolidated December 31, 2017 balance sheet for the impact of the allocation and the timing of the recognition of revenues for an open Photonics military product agreement with a tiered pricing structure. This change will also result in increased revenue in subsequent periods from this agreement. The cumulative effect of the changes made to our consolidated December 31, 2017 balance sheet for the adoption of the new revenue standard were as follows (in thousands): Balance at December 30, 2017 Adjustments Due to ASC 606 Balance at December 31, 2017 Other accrued liabilities $ 7,688 $ 1,634 $ 9,322 Accumulated deficit $ (66,881 ) $ (1,634 ) $ (68,515 ) In accordance with the new revenue standard requirements, the disclosure of the impact of adoption on select condensed consolidated statement of operations line items was as follows (in thousands): Three Months Ended Nine Months Ended September 29, 2018 As Balances ASC 606 Effect of As Reported Balances ASC 606 Effect of (In thousands) Systems and components revenues $ 17,140 $ 17,033 $ 107 $ 55,947 $ 55,611 $ 336 Total net revenues $ 19,466 $ 19,359 $ 107 $ 63,538 $ 63,202 $ 336 Gross profit $ 7,486 $ 7,379 $ 107 $ 22,122 $ 21,786 $ 336 Income (loss) from operations $ (1,093 ) $ (1,200 ) $ 107 $ (6,149 ) $ (6,485 ) $ 336 Income (loss) before income taxes $ (907 ) $ (1,014 ) $ 107 $ (5,685 ) $ (6,021 ) $ 336 Net loss $ (1,099 ) $ (1,206 ) $ 107 $ (6,402 ) $ (6,738 ) $ 336 In accordance with the new revenue standard requirements, the disclosure of the impact of adoption on select condensed consolidated balance sheet line items was as follows (in thousands): As of September 29, 2018 As Reported Balances without ASC 606 Effect of Change Other accrued liabilities $ 10,995 $ 9,697 $ 1,298 Total current liabilities $ 32,839 $ 31,541 $ 1,298 Accumulated deficit $ (74,917 ) $ (73,619 ) $ (1,298 ) Total stockholders’ equity $ 79,342 $ 80,640 $ (1,298 ) |
Revenue
Revenue | 9 Months Ended |
Sep. 29, 2018 | |
Revenue | 3. Revenue The following tables represent a disaggregation of revenue from contracts with customers for the three and nine months ended September 29, 2018 and September 30, 2017 along with the reportable segment for each category. As noted above, the prior period amounts have not been adjusted under the modified retrospective method. Major Products and Service Lines TFE Three Months Ended September 29, 2018 Three Months Ended September 30, 2017 (In thousands) HDD DCP PV Total HDD DCP PV Total Systems, upgrades and spare parts $ 9,476 $ — $ 51 $ 9,527 $ 15,620 $ — $ 275 $ 15,895 Field service 2,581 — — 2,581 1,282 — — 1,282 Total TFE net revenues $ 12,057 $ — $ 51 $ 12,108 $ 16,902 $ — $ 275 $ 17,177 Nine Months Ended September 29, 2018 Nine Months Ended September 30, 2017 (In thousands) HDD DCP PV Total HDD DCP PV Total Systems, upgrades and spare parts $ 39,090 $ 1 $ 54 $ 39,145 $ 34,875 $ 13,138 $ 9,271 $ 57,284 Field service 6,561 — 39 6,600 3,803 — — 3,803 Total TFE net revenues $ 45,651 $ 1 $ 93 $ 45,745 $ 38,678 $ 13,138 $ 9,271 $ 61,087 Three Months Ended Nine Months Ended Photonics September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 (In thousands) Products: Military products $ 4,202 $ 6,989 $ 8,601 $ 20,908 Commercial products 84 38 138 100 Repair and other services 746 333 1,463 727 Total Photonics product net revenues 5,032 7,360 10,202 21,735 Technology development: CPFF 1,819 1,446 5,829 2,516 FFP 494 728 1,726 2,724 Time and materials 13 15 36 15 Total technology development net revenues 2,326 2,189 7,591 5,255 Total Photonics net revenues $ 7,358 $ 9,549 $ 17,793 $ 26,990 Primary Geographical Markets Three Months Ended Three Months Ended September 29, 2018 September 30, 2017 (In thousands) TFE Photonics Total TFE Photonics Total United States $ 287 $ 6,868 $ 7,155 $ 1,370 $ 8,924 $ 10,294 Asia 11,821 — 11,821 15,807 — 15,807 Europe — 457 457 — 94 94 Rest of World — 33 33 — 531 531 Total net revenues $ 12,108 $ 7,358 $ 19,466 $ 17,177 $ 9,549 $ 26,726 Nine Months Ended Nine Months Ended September 29, 2018 September 30, 2017 (In thousands) TFE Photonics Total TFE Photonics Total United States $ 3,549 $ 16,628 $ 20,177 $ 4,033 $ 25,846 $ 29,879 Asia 42,196 31 42,227 57,054 8 57,062 Europe — 937 937 — 605 605 Rest of World — 197 197 — 531 531 Total net revenues $ 45,745 $ 17,793 $ 63,538 $ 61,087 $ 26,990 $ 88,077 Timing of Revenue Recognition Three Months Ended Nine Months Ended September 29, 2018 September 29, 2018 (In thousands) TFE Photonics Total TFE Photonics Total Products transferred at a point in time $ 12,108 $ 746 $ 12,854 $ 45,745 $ 1,463 $ 47,208 Products and services transferred over time — 6,612 6,612 — 16,330 16,330 $ 12,108 $ 7,358 $ 19,466 $ 45,745 $ 17,793 $ 63,538 The following table reflects the changes in our contract assets, which we classify as accounts receivable, unbilled or retainage, and our contract liabilities, which we classify as deferred revenue and customer advances, for the nine months ended September 29, 2018: September 29, 2018 December 30, 2017 Nine Months Change (In thousands) TFE: Contract assets: Accounts receivable, unbilled $ 517 $ 1,368 $ (851 ) Contract liabilities: Deferred revenue $ 6,200 $ 5,190 $ 1,010 Customer advances 11,066 10,204 862 $ 17,266 $ 15,394 $ 1,872 Photonics: Contract assets: Accounts receivable, unbilled $ 1,476 $ 1,346 $ 130 Retainage 145 281 (136 ) $ 1,621 $ 1,627 $ (6 ) Contract liabilities: Deferred revenue $ 1,317 $ 97 $ 1,220 Customer advances 550 822 (272 ) $ 1,867 $ 919 $ 948 Accounts receivable, unbilled in our TFE segment represents a contract asset for revenue that has been recognized in advance of billing the customer. For our system and certain upgrade sales, our TFE customers generally pay in three installments, with a portion of the system price billed upon receipt of an order, a portion of the price billed upon shipment, and the balance of the price due upon completion of installation and acceptance of the system at the customer’s factory. Accounts receivable, unbilled in our TFE segment generally represents the balance of the system price that is due upon completion of installation and acceptance less the amount that has been deferred as revenue for the performance of the installation tasks. During the nine months ended September 29, 2018, contract assets in our TFE segment decreased by $851,000 primarily due to the final billing on four systems that were pending acceptance as of December 30, 2017 that completed installation and were accepted by the customer, offset by the accrual of revenue for an additional two systems delivered during the first nine months of fiscal 2018 that were pending acceptance as of September 29, 2018. Customer advances in our TFE segment generally represent amounts billed to the customer prior to transferring goods which represents a contract liability. We have elected to use the practical expedient to disregard the effect of the time value of money in a significant financing component when its payment terms are less than one year. These contract advances are liquidated when revenue is recognized. Deferred revenue in our TFE segment generally represents amounts billed to a customer for completed systems at the customer site that are undergoing installation and acceptance testing where transfer of control has not yet occurred as we do not yet have a demonstrated history of meeting the acceptance criteria upon the customer’s receipt of product and represents a contract liability. During the nine months ended September 29, 2018, we recognized revenue in our TFE segment of $6.6 million and $69,000 that was included in customer advances and deferred revenue, respectively, at the beginning of the period. Accounts receivable, unbilled in our Photonics segment represents a contract asset for revenue that has been recognized in advance of billing the customer, which is common for contracts in the defense industry. In our Photonics segment, amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals (e.g., monthly) or upon achievement of contractual milestones. Generally, billing occurs subsequent to revenue recognition, resulting in contract assets. Our contracts with the U.S. government may also contain retainage provisions. Retainage represents a contract asset for the portion of the contract price earned by us for work performed, but held for payment by the U.S. government as a form of security until satisfactory completion of the contract. The retainage is billable upon completion of the contract performance and approval of final indirect expense rates by the government. During the nine months ended September 29, 2018, contract assets in our Photonics segment decreased by $6,000 primarily due to the final settlement of retainage amounts on certain CPFF contracts, offset in part by the accrual of revenue for incurred costs under CPFF contracts. Customer advances in our Photonics segment generally represent deposits from customers upon contract execution and upon achievement of contractual milestones which represents a contract liability. These deposits are liquidated when revenue is recognized. Deferred revenue in our Photonics segment includes $1.3 million deferred for the impact of the allocation and the timing of the recognition of revenues for a military product agreement with a tiered pricing structure. Deferred revenue in our Photonics segment also includes incurred costs under CPFF contracts pending approval of final indirect expense rates by the government and represents a contract liability. During the nine months ended September 29, 2018, we recognized revenue in our Photonics segment of $536,000 and $324,000 that was included in customer advances and deferred revenue, respectively, at the beginning of the period. On September 29, 2018 we had $72.2 million of remaining performance obligations, which we also refer to as total backlog. Backlog at September 29, 2018 consisted of $63.6 million of TFE backlog and $8.6 million of Photonics backlog. We expect to recognize approximately 44% of our remaining performance obligations as revenue in 2018, 52% in 2019 and 4% in 2020. |
Inventories
Inventories | 9 Months Ended |
Sep. 29, 2018 | |
Inventories | 4. Inventories Inventories are stated at the lower of average cost or market and consist of the following: September 29, December 30, 2018 2017 (In thousands) Raw materials $ 14,746 $ 19,881 Work-in-progress 15,493 9,433 Finished goods 4,440 4,478 $ 34,679 $ 33,792 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. 29, 2018 | |
Equity-Based Compensation | 5. Equity-Based Compensation At September 29, 2018, 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 29, 2018 and September 30, 2017 was as follows: Three Months Ended Nine Months Ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 (In thousands) Equity-based compensation by type of award: Stock options $ 213 $ 350 $ 563 $ 808 RSUs 309 731 945 1,943 ESPP awards 330 67 946 261 Total equity-based compensation $ 852 $ 1,148 $ 2,454 $ 3,012 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. A summary of the options activity is as follows: Shares Weighted-Average Exercise Price Options outstanding at December 30, 2017 2,925,861 $ 7.62 Options granted 421,125 $ 5.13 Options cancelled and forfeited (936,428 ) $ 9.31 Options exercised (321,190 ) $ 4.87 Options outstanding at September 29, 2018 2,089,368 $ 6.78 Options exercisable at September 29, 2018 1,331,565 $ 6.60 Intevac issued 410,522 shares under the ESPP during the nine months ended September 29, 2018. 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 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 Stock Options: Weighted-average fair value of grants per share $ 1.81 $ 3.89 $ 1.98 $ 4.54 Expected volatility 44.10 % 42.10 % 43.83 % 40.54 % Risk-free interest rate 2.87 % 1.84 % 2.58 % 1.77 % Expected term of options (in years) 3.90 4.08 4.41 4.10 Dividend yield None None None None Three Months Ended Nine Months Ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 Stock Purchase Rights: Weighted-average fair value of grants per share $ 1.87 $ 2.76 $ 2.24 $ 2.75 Expected volatility 50.64 % 48.59 % 47.64 % 43.51 % Risk-free interest rate 2.58 % 1.36 % 2.01 % 1.22 % Expected term of purchase rights (in years) 1.58 0.50 1.33 0.65 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 769,451 $ 7.84 Granted 217,917 $ 5.07 Vested (425,956 ) $ 7.15 Cancelled and forfeited (98,737 ) $ 8.74 Non-vested 462,675 $ 6.98 Time-based RSUs are converted into shares of Intevac common stock upon vesting on a one-for-one In fiscal 2016, the annual bonus for certain participants in the Company’s annual incentive plan was settled with RSUs with one-year one-year |
Purchased Intangible Assets
Purchased Intangible Assets | 9 Months Ended |
Sep. 29, 2018 | |
Purchased Intangible Assets | 6. Purchased Intangible Assets Details of finite-lived intangible assets by segment as of September 29, 2018 are as follows. September 29, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount (In thousands) TFE $ 7,172 $ (6,220 ) $ 952 Photonics 1,215 (1,125 ) 90 $ 8,387 $ (7,345 ) $ 1,042 Total amortization expense of finite-lived intangibles for the three and nine months ended September 29, 2018 was $154,000 and $461,000, respectively. As of September 29, 2018, future amortization expense is expected to be as follows. (In thousands) 2018 $ 154 2019 615 2020 273 $ 1,042 |
Acquisition-Related Contingent
Acquisition-Related Contingent Consideration | 9 Months Ended |
Sep. 29, 2018 | |
Acquisition-Related Contingent Consideration | 7. 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 29, 2018 based on 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 29, 2018 and September 30, 2017: Three Months Ended Nine Months Ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 (In thousands) Opening balance $ 370 $ 859 $ 362 $ 759 Changes in fair value — (283 ) 8 (181 ) Cash payments made — (172 ) — (174 ) Closing balance $ 370 $ 404 $ 370 $ 404 The following table displays the balance sheet classification of the contingent consideration liability account at September 29, 2018 and at December 30, 2017: September 29, December 30, 2018 2017 (In thousands) Other accrued liabilities $ 370 $ 103 Other long-term liabilities — 259 Total acquisition-related contingent consideration $ 370 $ 362 The following table represents the quantitative range of the significant unobservable inputs used in the calculation of fair value of the contingent consideration liability as of September 29, 2018. 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 29, 2018 Fair Value Valuation Technique Unobservable Input Weighted Average (In thousands, except for percentages) Revenue Earnout $ 370 Discounted cash flow Weighted average cost of capital 12.1 % |
Warranty
Warranty | 9 Months Ended |
Sep. 29, 2018 | |
Warranty | 8. Warranty Intevac provides for the estimated cost of warranty when revenue is recognized. Intevac’s warranty is per contract terms and for its HDD, DCP and solar cell 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 29, 2018 and September 30, 2017: Three Months Ended Nine Months Ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 (In thousands) Opening balance $ 911 $ 1,220 $ 994 $ 1,007 Expenditures incurred under warranties (51 ) (360 ) (469 ) (640 ) Accruals for product warranties issued during the reporting period 68 169 347 675 Adjustments to previously existing warranty accruals (139 ) 106 (83 ) 93 Closing balance $ 789 $ 1,135 $ 789 $ 1,135 The following table displays the balance sheet classification of the warranty provision account at September 29, 2018 and at December 30, 2017: September 29, December 30, 2018 2017 (In thousands) Other accrued liabilities $ 622 $ 757 Other long-term liabilities 167 237 Total warranty provision $ 789 $ 994 |
Guarantees
Guarantees | 9 Months Ended |
Sep. 29, 2018 | |
Guarantees | 9. 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 29, 2018, we had letters of credit and bank guarantees outstanding totaling $1.6 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 $1.6 million of restricted cash. |
Cash, Cash Equivalents and Inve
Cash, Cash Equivalents and Investments | 9 Months Ended |
Sep. 29, 2018 | |
Cash, Cash Equivalents and Investments | 10. Cash, Cash Equivalents and Investments Cash and cash equivalents, short-term investments and long-term investments consist of: September 29, 2018 Amortized Cost Unrealized Holding Gains Unrealized Holding Losses Fair Value (In thousands) Cash and cash equivalents: Cash $ 15,408 $ — $ — $ 15,408 Money market funds 5,536 — — 5,536 U.S. treasury and agency securities 809 — — 809 Total cash and cash equivalents $ 21,753 $ — $ — $ 21,753 Short-term investments: Certificates of deposit $ 5,797 $ 2 $ — $ 5,799 Commercial paper 2,726 — — 2,726 Corporate bonds and medium-term notes 3,054 — 12 3,042 Municipal bonds 499 — 2 497 U.S. treasury and agency securities 5,123 — 12 5,111 Total short-term investments $ 17,199 $ 2 $ 26 $ 17,175 Long-term investments: Certificates of deposit $ 500 $ — $ — $ 500 Corporate bonds and medium-term notes 3,679 1 6 3,674 U.S. treasury and agency securities 999 — 9 990 Total long-term investments $ 5,178 $ 1 $ 15 $ 5,164 Total cash, cash equivalents, and investments $ 44,130 $ 3 $ 41 $ 44,092 December 30, 2017 Amortized Cost Unrealized Holding Gains Unrealized Holding Losses Fair Value (In thousands) Cash and cash equivalents: Cash $ 13,195 $ — $ — $ 13,195 Money market funds 6,746 — — 6,746 Total cash and cash equivalents $ 19,941 $ — $ — $ 19,941 Short-term investments: Certificates of deposit $ 2,500 $ 1 $ 1 $ 2,500 Commercial paper 3,291 — — 3,291 Corporate bonds and medium-term notes 4,502 — 5 4,497 Municipal bonds 500 — 3 497 U.S. treasury and agency securities 4,917 — 4 4,913 Total short-term investments $ 15,710 $ 1 $ 13 $ 15,698 Long-term investments: Asset backed securities $ 500 $ — $ — $ 500 Corporate bonds and medium-term notes 4,384 — 21 4,363 U.S. treasury and agency securities 1,998 — 12 1,986 Total long-term investments $ 6,882 $ — $ 33 $ 6,849 Total cash, cash equivalents, and investments $ 42,533 $ 1 $ 46 $ 42,488 The contractual maturities of available-for-sale September 29, 2018 Amortized Cost Fair Value (In thousands) Due in one year or less $ 23,544 $ 23,520 Due after one through two years 5,178 5,164 $ 28,722 $ 28,684 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 29, 2018. September 29, 2018 In Loss Position for Less than 12 Months In Loss Position for Greater than 12 Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In thousands) Corporate bonds and medium-term notes $ 2,925 $ 10 $ 1,950 $ 8 Municipal bonds 497 2 — — U.S. treasury and agency securities 3,018 10 2,587 11 $ 6,440 $ 22 $ 4,537 $ 19 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 29, 2018 Total Level 1 Level 2 (In thousands) Recurring fair value measurements: Available-for-sale Money market funds $ 5,536 $ 5,536 $ — U.S. treasury and agency securities 6,910 5,913 997 Certificates of deposit 6,299 — 6,299 Commercial paper 2,726 — 2,726 Corporate bonds and medium-term notes 6,716 — 6,716 Municipal bonds 497 — 497 Total recurring fair value measurements $ 28,684 $ 11,449 $ 17,235 |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 29, 2018 | |
Derivative Instruments | 11. 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 29, 2018 and December 30, 2017: Notional Amounts Derivative Liabilities Derivative Instrument September 29 2018 December 30, 2017 September 29, 2018 December 30, 2017 Balance Sheet Line Fair Value Balance Sheet Line Fair Value (in thousands) Undesignated Hedges: Forward Foreign Currency Contracts $ 1,470 $ 1,276 (a) $ 7 (a) $ 5 Total Hedges $ 1,470 $ 1,276 $ 7 $ 5 (a) Other accrued liabilities |
Equity
Equity | 9 Months Ended |
Sep. 29, 2018 | |
Equity | 12. Equity Condensed Consolidated Statement of Changes in Equity The changes in stockholders’ equity by component for the three and nine months ended September 29, 2018 and September 30, 2017, are as follows (in thousands): Three months ended September 29, 2018 Common Stock and Accumulated Additional Other Total Paid-in Treasury Comprehensive Accumulated Stockholders’ Capital Stock Income Deficit Equity Balance at June 30, 2018 $ 180,449 $ (28,489 ) $ 444 $ (73,818 ) $ 78,586 Common stock issued under employee plans 1,076 — — — 1,076 Equity-based compensation expense 852 — — — 852 Net loss — — — (1,099 ) (1,099 ) Other comprehensive loss — — (73 ) — (73 ) Balance at September 29, 2018 $ 182,377 $ (28,489 ) $ 371 $ (74,917 ) $ 79,342 Nine months ended September 29, 2018 Common Stock and Accumulated Additional Other Total Paid-in Treasury Comprehensive Accumulated Stockholders’ Capital Stock Income Deficit Equity Balance at December 30, 2017 $ 177,543 $ (28,489 ) $ 490 $ (66,881 ) $ 82,663 Cumulative effect of accounting change — — — (1,634 ) (1,634 ) Common stock issued under employee plans 2,380 — — — 2,380 Equity-based compensation expense 2,454 — — — 2,454 Net loss — — — (6,402 ) (6,402 ) Other comprehensive loss — — (119 ) — (119 ) Balance at September 29, 2018 $ 182,377 $ (28,489 ) $ 371 $ (74,917 ) $ 79,342 Three months ended September 30, 2017 Common Stock and Accumulated Additional Other Total Paid-in Treasury Comprehensive Accumulated Stockholders’ Capital Stock Income Deficit Equity Balance at July 1, 2017 $ 174,267 $ (28,489 ) $ 399 $ (68,070 ) $ 78,107 Common stock issued under employee plans 889 — — — 889 Equity-based compensation expense 1,148 — — — 1,148 Net income — — — 1,230 1,230 Other comprehensive income — — 44 — 44 Balance at September 30, 2017 $ 176,304 $ (28,489 ) $ 443 $ (66,840 ) $ 81,418 Nine months ended September 30, 2017 Common Stock and Accumulated Additional Other Total Paid-in Treasury Comprehensive Accumulated Stockholders’ Capital Stock Income Deficit Equity Balance at December 31, 2016 $ 171,335 $ (28,489 ) $ 321 $ (69,901 ) $ 73,266 Cumulative effect of accounting change 1,098 — — (1,098 ) — Common stock issued under employee plans 356 — — — 356 Grant of RSUs to settle accrued bonus 605 — — — 605 Equity-based compensation expense 2,910 — — — 2,910 Net income — — — 4,159 4,159 Other comprehensive income — — 122 — 122 Balance at September 30, 2017 $ 176,304 $ (28,489 ) $ 443 $ (66,840 ) $ 81,418 Accumulated Other Comprehensive Income The changes in accumulated other comprehensive income by component for the three and nine months ended September 29, 2018 and September 30, 2017, are as follows. Three Months Ended Nine Months Ended September 29, 2018 Foreign currency Unrealized available-for-sale Total Foreign Unrealized available-for-sale Total (In thousands) Beginning balance $ 495 $ (51 ) $ 444 $ 535 $ (45 ) $ 490 Other comprehensive income before reclassification (86 ) 13 (73 ) (126 ) 7 (119 ) Amounts reclassified from other comprehensive income — — — — — — Net current-period other comprehensive income (86 ) 13 (73 ) (126 ) 7 (119 ) Ending balance $ 409 $ (38 ) $ 371 $ 409 $ (38 ) $ 371 Three Months Ended Nine Months Ended September 30, 2017 Foreign currency Unrealized holding losses on available-for-sale Total Foreign Unrealized available-for-sale Total (In thousands) Beginning balance $ 418 $ (19 ) $ 399 $ 343 $ (22 ) $ 321 Other comprehensive income (loss) before reclassification 39 5 44 114 8 122 Amounts reclassified from other comprehensive income — — — — — — Net current-period other comprehensive income (loss) 39 5 44 114 8 122 Ending balance $ 457 $ (14 ) $ 443 $ 457 $ (14 ) $ 443 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. On August 15, 2018, Intevac’s Board of Directors approved a $10.0 million increase to the original stock repurchase program for an aggregate authorized amount of $40.0 million. At September 29, 2018, $11.5 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 29, 2018 and September 30, 2017, respectively. Intevac records treasury stock purchases under the cost method using the first-in, first-out paid-in paid-in |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 9 Months Ended |
Sep. 29, 2018 | |
Net Income (Loss) Per Share | 13. Net Income (Loss) Per Share The following table sets forth the computation of basic and diluted net income (loss) per share for the three and nine months ended September 29, 2018 and September 30, 2017: Three Months Ended Nine Months Ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 (In thousands, except per share amounts) Net income (loss) $ (1,099 ) $ 1,230 $ (6,402 ) $ 4,159 Weighted-average shares – basic 22,719 21,714 22,429 21,475 Effect of dilutive potential common shares — 1,256 — 1,514 Weighted-average shares – diluted 22,719 22,970 22,429 22,989 Net income (loss) per share – basic $ (0.05 ) $ 0.06 $ (0.29 ) $ 0.19 Net income (loss) per share –diluted $ (0.05 ) $ 0.05 $ (0.29 ) $ 0.18 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 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 (In thousands) Stock options to purchase common stock 2,089 826 2,089 834 RSUs 463 — 463 — Employee stock purchase plan 800 — 800 — |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 29, 2018 | |
Segment Reporting | 14. Segment Reporting Intevac’s two reportable segments are: TFE 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 29, 2018 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 TFE 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 29, 2018 and September 30, 2017 is as follows: Net Revenues Three Months Ended Nine Months Ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 (In thousands) TFE $ 12,108 $ 17,177 $ 45,745 $ 61,087 Photonics 7,358 9,549 17,793 26,990 Total segment net revenues $ 19,466 $ 26,726 $ 63,538 $ 88,077 Operating Income (Loss) Three Months Ended Nine Months Ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 (In thousands) TFE $ (907 ) $ 1,213 $ (2,197 ) $ 4,821 Photonics 688 1,417 (966 ) 3,646 Total segment operating income (loss) (219 ) 2,630 (3,163 ) 8,467 Unallocated costs (874 ) (1,362 ) (2,986 ) (3,768 ) Income (loss) from operations (1,093 ) 1,268 (6,149 ) 4,699 Interest income and other income (expense), net 186 28 464 265 Income (loss) before income taxes $ (907 ) $ 1,296 $ (5,685 ) $ 4,964 Total assets for each reportable segment as of September 29, 2018 and December 30, 2017 are as follows: Assets September 29, 2018 December 30, 2017 (In thousands) TFE $ 48,961 $ 52,156 Photonics 17,007 16,364 Total segment assets 65,968 68,520 Cash, cash equivalents and investments 44,092 42,488 Restricted cash 1,569 1,000 Deferred income taxes 4 4 Other current assets 1,201 1,001 Common property, plant and equipment 1,060 1,267 Other assets 723 743 Consolidated total assets $ 114,617 $ 115,023 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 29, 2018 | |
Income Taxes | 15. Income Taxes Intevac recorded income tax provisions of $192,000 and $717,000 for the three and nine months ended September 29, 2018, respectively, and $66,000 and $805,000 for the three and nine months ended September 30, 2017, respectively. The income tax provisions for the three and nine months are based upon estimates of annual income (loss), annual permanent differences and statutory tax rates in the various jurisdictions in which Intevac operates. For the three and nine months ended September 29, 2018 Intevac utilized net operating loss carry-forwards to offset the impact of the global intangible low-taxed Tax Reform was enacted on December 22, 2017. Tax Reform reduces the U.S. federal corporate tax rate from 35% to 21%, requires companies to pay a one-time one-time Additionally, Tax Reform subjects a U.S. shareholder to tax on GILTI earned by certain foreign subsidiaries for tax years starting on or after January 1, 2018. The FASB Staff Q&A, Topic 740, No. 5, Accounting for Global Intangible Low-Taxed The Company historically asserted its intent to reinvest substantially all of its foreign earnings in foreign operations indefinitely. The Company is still in the process of analyzing the impact that Tax Reform has on its indefinite reinvestment assertion. Accordingly, no additional income taxes or withholding taxes have been provided for any remaining undistributed foreign earnings not subject to the transition tax, or any outside basis difference inherent in these entities. 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 $723,000 at September 29, 2018 and $743,000 at December 30, 2017 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. 29, 2018 | |
Contingencies | 16. Contingencies From time to time, Intevac may have certain contingent liabilities that arise in the ordinary course of its business activities. Intevac accounts for contingent liabilities when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. |
Restructuring Charges
Restructuring Charges | 9 Months Ended |
Sep. 29, 2018 | |
Restructuring Charges | 17. Restructuring Charges During the first quarter of fiscal 2018, Intevac substantially completed implementation of the 2018 cost reduction plan (the “Plan”), which was intended to reduce expenses and reduce its workforce by 6 percent. The cost of implementing the Plan was reported under cost of net revenues and operating expenses in the condensed consolidated statements of operations. Substantially all cash outlays in connection with the Plan occurred in the first quarter of fiscal 2018. Implementation of the Plan is expected to reduce salary, wages and other employee-related expenses by approximately $1.8 million on an annual basis. The changes in restructuring reserves associated with the Plan for the nine months ended September 29, 2018 are as follows. Nine Months Ended September 29, 2018 Severance and employee- related costs (In thousands) Beginning balance $ — Provision for restructuring reserves 95 Cash payments made (95 ) Ending balance $ — |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 29, 2018 | |
Recently Issued Accounting Standards Not Yet Adopted | Recently Issued Accounting Standards Not Yet Adopted In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2018-15, Other—Internal-Use 350-40): In February 2018, the FASB issued ASU 2018-02, 2018-02 ASU 2018-02 In February 2016, the FASB issued ASU 2016-02, Intevac leases certain facilities under non-cancelable We plan to adopt the standard as of December 30, 2018, the beginning of fiscal 2019. We will elect the package of practical expedients permitted under the transition guidance within the new standard, which, among other things, allows us to carry forward the historical lease classification. In addition, we are electing the hindsight practical expedient to determine the reasonably certain lease term for existing leases. We will make an accounting policy election to keep leases with an initial term of 12 months or less off of the balance sheet. We will recognize those lease payments in the consolidated statements of operations on a straight-line basis over the lease term. We also plan to elect the practical expedient that will allow us to apply the new lease guidance at its effective date, December 30, 2018, without adjusting the comparative financial statements. We are currently completing the assessment phase of the implementation project and are finalizing our review of the impact of adoption. We expect the adoption of these accounting changes will materially increase our assets and liabilities, but will not have a material impact on our results of operations, equity, or cash flows. |
Adoption of New Accounting Standard | Adoption of New Accounting Standard On December 31, 2017, we adopted the new accounting standard ASC 606, Revenue from Contracts with Customers and all the related amendments (“new revenue standard”) to all contracts using the modified retrospective method. We recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of the accumulated deficit. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. We expect the impact of the adoption of the new standard to be immaterial to our net income on an ongoing basis. In our TFE segment, a majority of our equipment sales revenue continues to be recognized when products are shipped from our manufacturing facilities. Revenue recognition for our equipment sales arrangements, which includes systems, technology upgrades, service and spare parts, remains materially consistent with our historical practice. Under the new revenue standard, in our TFE segment, we 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. Intevac recognizes revenue in certain circumstances before delivery has occurred (commonly referred to as bill and hold transactions). In such circumstances, among other things, risk of ownership has passed to the customer, the customer has made a written fixed commitment to purchase the finished goods, the customer has requested the finished goods be held for future delivery as scheduled and designated by them, and no additional performance obligations exist by Intevac. For these transactions, the finished goods are segregated from inventory and normal billing and credit terms granted. Our contracts with customers may include multiple performance obligations. For such arrangements, under the new revenue standard we 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 by using expected cost plus margin. Under the new revenue standard, the expected costs associated with our base warranties continue to be recognized as expense when the equipment is sold. Under the new revenue standard, in our Photonics segment, we recognize revenue for cost plus fixed fee (“CPFF”) and firm fixed priced (“FFP”) government contracts over time under the cost-to-cost non-U.S. cost-to-cost The majority of our contracts in our Photonics segment have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and, therefore, not distinct. Some of our contracts have multiple performance obligations, most commonly due to the contract covering multiple phases of the product lifecycle (development and production). For contracts with multiple performance obligations, we allocate the contract’s transaction price to each performance obligation using our best estimate of the standalone selling price of each distinct good or service in the contract. The primary method used to estimate standalone selling price is the expected cost plus a margin approach, under which we forecast our expected costs of satisfying a performance obligation and then add an appropriate margin for that distinct good or service. Under the new revenue standard, in our Photonics segment, we recognize revenue for homogenous manufactured military products sold to the U.S. government and its contractors over time under the units-of-delivery units-of-delivery The nature of our contracts in our Photonics segment gives rise to several types of variable consideration including tiered pricing. Allocation of contract revenues among Photonics military products, and the timing of the recognition of those revenues, is impacted by agreements with tiered pricing or variable rate structures. We include variable consideration in the estimated transaction price when there is a basis to reasonably estimate the amount of the consideration. These estimates are based on historical experience, anticipated performance and our best judgment at the time. Because of our certainty in estimating these amounts, they are included in the transaction price of our contracts and the associated remaining performance obligations. Accounting for CPFF and FFP contracts and programs involves the use of various techniques to estimate total contract revenue and costs. For these contracts, we estimate the profit on a contract as the difference between the total estimated revenue and expected costs to complete a contract and recognize that profit over the life of the contract. Contract estimates are based on various assumptions to project the outcome of future events. These assumptions include the complexity of the work to be performed; the cost and availability of materials; the performance of subcontractors; and the availability and timing of funding from the customer. As a significant change in one or more of these estimates could affect the profitability of our contracts, we review and update our contract-related estimates regularly. We recognize adjustments in estimated profit on contracts under the cumulative catch-up We recorded a cumulative effect adjustment to the beginning balance of our consolidated December 31, 2017 balance sheet for the impact of the allocation and the timing of the recognition of revenues for an open Photonics military product agreement with a tiered pricing structure. This change will also result in increased revenue in subsequent periods from this agreement. The cumulative effect of the changes made to our consolidated December 31, 2017 balance sheet for the adoption of the new revenue standard were as follows (in thousands): Balance at December 30, 2017 Adjustments Due to ASC 606 Balance at December 31, 2017 Other accrued liabilities $ 7,688 $ 1,634 $ 9,322 Accumulated deficit $ (66,881 ) $ (1,634 ) $ (68,515 ) In accordance with the new revenue standard requirements, the disclosure of the impact of adoption on select condensed consolidated statement of operations line items was as follows (in thousands): Three Months Ended Nine Months Ended September 29, 2018 As Balances ASC 606 Effect of As Reported Balances ASC 606 Effect of (In thousands) Systems and components revenues $ 17,140 $ 17,033 $ 107 $ 55,947 $ 55,611 $ 336 Total net revenues $ 19,466 $ 19,359 $ 107 $ 63,538 $ 63,202 $ 336 Gross profit $ 7,486 $ 7,379 $ 107 $ 22,122 $ 21,786 $ 336 Income (loss) from operations $ (1,093 ) $ (1,200 ) $ 107 $ (6,149 ) $ (6,485 ) $ 336 Income (loss) before income taxes $ (907 ) $ (1,014 ) $ 107 $ (5,685 ) $ (6,021 ) $ 336 Net loss $ (1,099 ) $ (1,206 ) $ 107 $ (6,402 ) $ (6,738 ) $ 336 In accordance with the new revenue standard requirements, the disclosure of the impact of adoption on select condensed consolidated balance sheet line items was as follows (in thousands): As of September 29, 2018 As Reported Balances without ASC 606 Effect of Change Other accrued liabilities $ 10,995 $ 9,697 $ 1,298 Total current liabilities $ 32,839 $ 31,541 $ 1,298 Accumulated deficit $ (74,917 ) $ (73,619 ) $ (1,298 ) Total stockholders’ equity $ 79,342 $ 80,640 $ (1,298 ) |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Effect of Changes in Financial Statements Due to Adoption of New Revenue Standard | The cumulative effect of the changes made to our consolidated December 31, 2017 balance sheet for the adoption of the new revenue standard were as follows (in thousands): Balance at December 30, 2017 Adjustments Due to ASC 606 Balance at December 31, 2017 Other accrued liabilities $ 7,688 $ 1,634 $ 9,322 Accumulated deficit $ (66,881 ) $ (1,634 ) $ (68,515 ) In accordance with the new revenue standard requirements, the disclosure of the impact of adoption on select condensed consolidated statement of operations line items was as follows (in thousands): Three Months Ended Nine Months Ended September 29, 2018 As Balances ASC 606 Effect of As Reported Balances ASC 606 Effect of (In thousands) Systems and components revenues $ 17,140 $ 17,033 $ 107 $ 55,947 $ 55,611 $ 336 Total net revenues $ 19,466 $ 19,359 $ 107 $ 63,538 $ 63,202 $ 336 Gross profit $ 7,486 $ 7,379 $ 107 $ 22,122 $ 21,786 $ 336 Income (loss) from operations $ (1,093 ) $ (1,200 ) $ 107 $ (6,149 ) $ (6,485 ) $ 336 Income (loss) before income taxes $ (907 ) $ (1,014 ) $ 107 $ (5,685 ) $ (6,021 ) $ 336 Net loss $ (1,099 ) $ (1,206 ) $ 107 $ (6,402 ) $ (6,738 ) $ 336 In accordance with the new revenue standard requirements, the disclosure of the impact of adoption on select condensed consolidated balance sheet line items was as follows (in thousands): As of September 29, 2018 As Reported Balances without ASC 606 Effect of Change Other accrued liabilities $ 10,995 $ 9,697 $ 1,298 Total current liabilities $ 32,839 $ 31,541 $ 1,298 Accumulated deficit $ (74,917 ) $ (73,619 ) $ (1,298 ) Total stockholders’ equity $ 79,342 $ 80,640 $ (1,298 ) |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Disaggregation of Revenue from Contracts with Customers | The following tables represent a disaggregation of revenue from contracts with customers for the three and nine months ended September 29, 2018 and September 30, 2017 along with the reportable segment for each category. As noted above, the prior period amounts have not been adjusted under the modified retrospective method. Major Products and Service Lines TFE Three Months Ended September 29, 2018 Three Months Ended September 30, 2017 (In thousands) HDD DCP PV Total HDD DCP PV Total Systems, upgrades and spare parts $ 9,476 $ — $ 51 $ 9,527 $ 15,620 $ — $ 275 $ 15,895 Field service 2,581 — — 2,581 1,282 — — 1,282 Total TFE net revenues $ 12,057 $ — $ 51 $ 12,108 $ 16,902 $ — $ 275 $ 17,177 Nine Months Ended September 29, 2018 Nine Months Ended September 30, 2017 (In thousands) HDD DCP PV Total HDD DCP PV Total Systems, upgrades and spare parts $ 39,090 $ 1 $ 54 $ 39,145 $ 34,875 $ 13,138 $ 9,271 $ 57,284 Field service 6,561 — 39 6,600 3,803 — — 3,803 Total TFE net revenues $ 45,651 $ 1 $ 93 $ 45,745 $ 38,678 $ 13,138 $ 9,271 $ 61,087 Three Months Ended Nine Months Ended Photonics September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 (In thousands) Products: Military products $ 4,202 $ 6,989 $ 8,601 $ 20,908 Commercial products 84 38 138 100 Repair and other services 746 333 1,463 727 Total Photonics product net revenues 5,032 7,360 10,202 21,735 Technology development: CPFF 1,819 1,446 5,829 2,516 FFP 494 728 1,726 2,724 Time and materials 13 15 36 15 Total technology development net revenues 2,326 2,189 7,591 5,255 Total Photonics net revenues $ 7,358 $ 9,549 $ 17,793 $ 26,990 Primary Geographical Markets Three Months Ended Three Months Ended September 29, 2018 September 30, 2017 (In thousands) TFE Photonics Total TFE Photonics Total United States $ 287 $ 6,868 $ 7,155 $ 1,370 $ 8,924 $ 10,294 Asia 11,821 — 11,821 15,807 — 15,807 Europe — 457 457 — 94 94 Rest of World — 33 33 — 531 531 Total net revenues $ 12,108 $ 7,358 $ 19,466 $ 17,177 $ 9,549 $ 26,726 Nine Months Ended Nine Months Ended September 29, 2018 September 30, 2017 (In thousands) TFE Photonics Total TFE Photonics Total United States $ 3,549 $ 16,628 $ 20,177 $ 4,033 $ 25,846 $ 29,879 Asia 42,196 31 42,227 57,054 8 57,062 Europe — 937 937 — 605 605 Rest of World — 197 197 — 531 531 Total net revenues $ 45,745 $ 17,793 $ 63,538 $ 61,087 $ 26,990 $ 88,077 Timing of Revenue Recognition Three Months Ended Nine Months Ended September 29, 2018 September 29, 2018 (In thousands) TFE Photonics Total TFE Photonics Total Products transferred at a point in time $ 12,108 $ 746 $ 12,854 $ 45,745 $ 1,463 $ 47,208 Products and services transferred over time — 6,612 6,612 — 16,330 16,330 $ 12,108 $ 7,358 $ 19,466 $ 45,745 $ 17,793 $ 63,538 |
Changes in Contract Assets and Contract Liabilities | The following table reflects the changes in our contract assets, which we classify as accounts receivable, unbilled or retainage, and our contract liabilities, which we classify as deferred revenue and customer advances, for the nine months ended September 29, 2018: September 29, 2018 December 30, 2017 Nine Months Change (In thousands) TFE: Contract assets: Accounts receivable, unbilled $ 517 $ 1,368 $ (851 ) Contract liabilities: Deferred revenue $ 6,200 $ 5,190 $ 1,010 Customer advances 11,066 10,204 862 $ 17,266 $ 15,394 $ 1,872 Photonics: Contract assets: Accounts receivable, unbilled $ 1,476 $ 1,346 $ 130 Retainage 145 281 (136 ) $ 1,621 $ 1,627 $ (6 ) Contract liabilities: Deferred revenue $ 1,317 $ 97 $ 1,220 Customer advances 550 822 (272 ) $ 1,867 $ 919 $ 948 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Summary of Inventories | Inventories are stated at the lower of average cost or market and consist of the following: September 29, December 30, 2018 2017 (In thousands) Raw materials $ 14,746 $ 19,881 Work-in-progress 15,493 9,433 Finished goods 4,440 4,478 $ 34,679 $ 33,792 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Effect of Recording Equity-Based Compensation | The effect of recording equity-based compensation for the three and nine months ended September 29, 2018 and September 30, 2017 was as follows: Three Months Ended Nine Months Ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 (In thousands) Equity-based compensation by type of award: Stock options $ 213 $ 350 $ 563 $ 808 RSUs 309 731 945 1,943 ESPP awards 330 67 946 261 Total equity-based compensation $ 852 $ 1,148 $ 2,454 $ 3,012 |
Summary of Option Activity | A summary of the options activity is as follows: Shares Weighted-Average Exercise Price Options outstanding at December 30, 2017 2,925,861 $ 7.62 Options granted 421,125 $ 5.13 Options cancelled and forfeited (936,428 ) $ 9.31 Options exercised (321,190 ) $ 4.87 Options outstanding at September 29, 2018 2,089,368 $ 6.78 Options exercisable at September 29, 2018 1,331,565 $ 6.60 |
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 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 Stock Options: Weighted-average fair value of grants per share $ 1.81 $ 3.89 $ 1.98 $ 4.54 Expected volatility 44.10 % 42.10 % 43.83 % 40.54 % Risk-free interest rate 2.87 % 1.84 % 2.58 % 1.77 % Expected term of options (in years) 3.90 4.08 4.41 4.10 Dividend yield None None None None Three Months Ended Nine Months Ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 Stock Purchase Rights: Weighted-average fair value of grants per share $ 1.87 $ 2.76 $ 2.24 $ 2.75 Expected volatility 50.64 % 48.59 % 47.64 % 43.51 % Risk-free interest rate 2.58 % 1.36 % 2.01 % 1.22 % Expected term of purchase rights (in years) 1.58 0.50 1.33 0.65 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 769,451 $ 7.84 Granted 217,917 $ 5.07 Vested (425,956 ) $ 7.15 Cancelled and forfeited (98,737 ) $ 8.74 Non-vested 462,675 $ 6.98 |
Purchased Intangible Assets (Ta
Purchased Intangible Assets (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Details of Finite-lived Intangible Assets by Segment | Details of finite-lived intangible assets by segment as of September 29, 2018 are as follows. September 29, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount (In thousands) TFE $ 7,172 $ (6,220 ) $ 952 Photonics 1,215 (1,125 ) 90 $ 8,387 $ (7,345 ) $ 1,042 |
Future Amortization Expense | As of September 29, 2018, future amortization expense is expected to be as follows. (In thousands) 2018 $ 154 2019 615 2020 273 $ 1,042 |
Acquisition-Related Contingen_2
Acquisition-Related Contingent Consideration (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
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 29, 2018 and September 30, 2017: Three Months Ended Nine Months Ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 (In thousands) Opening balance $ 370 $ 859 $ 362 $ 759 Changes in fair value — (283 ) 8 (181 ) Cash payments made — (172 ) — (174 ) Closing balance $ 370 $ 404 $ 370 $ 404 |
Balance Sheet Classification of Contingent Consideration Liability | The following table displays the balance sheet classification of the contingent consideration liability account at September 29, 2018 and at December 30, 2017: September 29, December 30, 2018 2017 (In thousands) Other accrued liabilities $ 370 $ 103 Other long-term liabilities — 259 Total acquisition-related contingent consideration $ 370 $ 362 |
Quantitative Information of Significant Unobservable Inputs of Contingent Consideration Liability | The following table represents the quantitative range of the significant unobservable inputs used in the calculation of fair value of the contingent consideration liability as of September 29, 2018. 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 29, 2018 Fair Value Valuation Technique Unobservable Input Weighted Average (In thousands, except for percentages) Revenue Earnout $ 370 Discounted cash flow Weighted average cost of capital 12.1 % |
Warranty (Tables)
Warranty (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Activity in Warranty Provision Account | The following table displays the activity in the warranty provision account for the three and nine months ended September 29, 2018 and September 30, 2017: Three Months Ended Nine Months Ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 (In thousands) Opening balance $ 911 $ 1,220 $ 994 $ 1,007 Expenditures incurred under warranties (51 ) (360 ) (469 ) (640 ) Accruals for product warranties issued during the reporting period 68 169 347 675 Adjustments to previously existing warranty accruals (139 ) 106 (83 ) 93 Closing balance $ 789 $ 1,135 $ 789 $ 1,135 The following table displays the balance sheet classification of the warranty provision account at September 29, 2018 and at December 30, 2017: September 29, December 30, 2018 2017 (In thousands) Other accrued liabilities $ 622 $ 757 Other long-term liabilities 167 237 Total warranty provision $ 789 $ 994 |
Cash, Cash Equivalents and In_2
Cash, Cash Equivalents and Investments (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
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 29, 2018 Amortized Cost Unrealized Holding Gains Unrealized Holding Losses Fair Value (In thousands) Cash and cash equivalents: Cash $ 15,408 $ — $ — $ 15,408 Money market funds 5,536 — — 5,536 U.S. treasury and agency securities 809 — — 809 Total cash and cash equivalents $ 21,753 $ — $ — $ 21,753 Short-term investments: Certificates of deposit $ 5,797 $ 2 $ — $ 5,799 Commercial paper 2,726 — — 2,726 Corporate bonds and medium-term notes 3,054 — 12 3,042 Municipal bonds 499 — 2 497 U.S. treasury and agency securities 5,123 — 12 5,111 Total short-term investments $ 17,199 $ 2 $ 26 $ 17,175 Long-term investments: Certificates of deposit $ 500 $ — $ — $ 500 Corporate bonds and medium-term notes 3,679 1 6 3,674 U.S. treasury and agency securities 999 — 9 990 Total long-term investments $ 5,178 $ 1 $ 15 $ 5,164 Total cash, cash equivalents, and investments $ 44,130 $ 3 $ 41 $ 44,092 December 30, 2017 Amortized Cost Unrealized Holding Gains Unrealized Holding Losses Fair Value (In thousands) Cash and cash equivalents: Cash $ 13,195 $ — $ — $ 13,195 Money market funds 6,746 — — 6,746 Total cash and cash equivalents $ 19,941 $ — $ — $ 19,941 Short-term investments: Certificates of deposit $ 2,500 $ 1 $ 1 $ 2,500 Commercial paper 3,291 — — 3,291 Corporate bonds and medium-term notes 4,502 — 5 4,497 Municipal bonds 500 — 3 497 U.S. treasury and agency securities 4,917 — 4 4,913 Total short-term investments $ 15,710 $ 1 $ 13 $ 15,698 Long-term investments: Asset backed securities $ 500 $ — $ — $ 500 Corporate bonds and medium-term notes 4,384 — 21 4,363 U.S. treasury and agency securities 1,998 — 12 1,986 Total long-term investments $ 6,882 $ — $ 33 $ 6,849 Total cash, cash equivalents, and investments $ 42,533 $ 1 $ 46 $ 42,488 |
Contractual Maturities of Available-for-Sale Securities | The contractual maturities of available-for-sale September 29, 2018 Amortized Cost Fair Value (In thousands) Due in one year or less $ 23,544 $ 23,520 Due after one through two years 5,178 5,164 $ 28,722 $ 28,684 |
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 29, 2018. September 29, 2018 In Loss Position for Less than 12 Months In Loss Position for Greater than 12 Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In thousands) Corporate bonds and medium-term notes $ 2,925 $ 10 $ 1,950 $ 8 Municipal bonds 497 2 — — U.S. treasury and agency securities 3,018 10 2,587 11 $ 6,440 $ 22 $ 4,537 $ 19 |
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 29, 2018 Total Level 1 Level 2 (In thousands) Recurring fair value measurements: Available-for-sale Money market funds $ 5,536 $ 5,536 $ — U.S. treasury and agency securities 6,910 5,913 997 Certificates of deposit 6,299 — 6,299 Commercial paper 2,726 — 2,726 Corporate bonds and medium-term notes 6,716 — 6,716 Municipal bonds 497 — 497 Total recurring fair value measurements $ 28,684 $ 11,449 $ 17,235 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
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 29, 2018 and December 30, 2017: Notional Amounts Derivative Liabilities Derivative Instrument September 29 2018 December 30, 2017 September 29, 2018 December 30, 2017 Balance Sheet Line Fair Value Balance Sheet Line Fair Value (in thousands) Undesignated Hedges: Forward Foreign Currency Contracts $ 1,470 $ 1,276 (a) $ 7 (a) $ 5 Total Hedges $ 1,470 $ 1,276 $ 7 $ 5 (a) Other accrued liabilities |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Schedule of Changes in Stockholders' Equity | The changes in stockholders’ equity by component for the three and nine months ended September 29, 2018 and September 30, 2017, are as follows (in thousands): Three months ended September 29, 2018 Common Stock and Accumulated Additional Other Total Paid-in Treasury Comprehensive Accumulated Stockholders’ Capital Stock Income Deficit Equity Balance at June 30, 2018 $ 180,449 $ (28,489 ) $ 444 $ (73,818 ) $ 78,586 Common stock issued under employee plans 1,076 — — — 1,076 Equity-based compensation expense 852 — — — 852 Net loss — — — (1,099 ) (1,099 ) Other comprehensive loss — — (73 ) — (73 ) Balance at September 29, 2018 $ 182,377 $ (28,489 ) $ 371 $ (74,917 ) $ 79,342 Nine months ended September 29, 2018 Common Stock and Accumulated Additional Other Total Paid-in Treasury Comprehensive Accumulated Stockholders’ Capital Stock Income Deficit Equity Balance at December 30, 2017 $ 177,543 $ (28,489 ) $ 490 $ (66,881 ) $ 82,663 Cumulative effect of accounting change — — — (1,634 ) (1,634 ) Common stock issued under employee plans 2,380 — — — 2,380 Equity-based compensation expense 2,454 — — — 2,454 Net loss — — — (6,402 ) (6,402 ) Other comprehensive loss — — (119 ) — (119 ) Balance at September 29, 2018 $ 182,377 $ (28,489 ) $ 371 $ (74,917 ) $ 79,342 Three months ended September 30, 2017 Common Stock and Accumulated Additional Other Total Paid-in Treasury Comprehensive Accumulated Stockholders’ Capital Stock Income Deficit Equity Balance at July 1, 2017 $ 174,267 $ (28,489 ) $ 399 $ (68,070 ) $ 78,107 Common stock issued under employee plans 889 — — — 889 Equity-based compensation expense 1,148 — — — 1,148 Net income — — — 1,230 1,230 Other comprehensive income — — 44 — 44 Balance at September 30, 2017 $ 176,304 $ (28,489 ) $ 443 $ (66,840 ) $ 81,418 Nine months ended September 30, 2017 Common Stock and Accumulated Additional Other Total Paid-in Treasury Comprehensive Accumulated Stockholders’ Capital Stock Income Deficit Equity Balance at December 31, 2016 $ 171,335 $ (28,489 ) $ 321 $ (69,901 ) $ 73,266 Cumulative effect of accounting change 1,098 — — (1,098 ) — Common stock issued under employee plans 356 — — — 356 Grant of RSUs to settle accrued bonus 605 — — — 605 Equity-based compensation expense 2,910 — — — 2,910 Net income — — — 4,159 4,159 Other comprehensive income — — 122 — 122 Balance at September 30, 2017 $ 176,304 $ (28,489 ) $ 443 $ (66,840 ) $ 81,418 |
Changes in Accumulated Other Comprehensive Income by Component | The changes in accumulated other comprehensive income by component for the three and nine months ended September 29, 2018 and September 30, 2017, are as follows. Three Months Ended Nine Months Ended September 29, 2018 Foreign currency Unrealized available-for-sale Total Foreign Unrealized available-for-sale Total (In thousands) Beginning balance $ 495 $ (51 ) $ 444 $ 535 $ (45 ) $ 490 Other comprehensive income before reclassification (86 ) 13 (73 ) (126 ) 7 (119 ) Amounts reclassified from other comprehensive income — — — — — — Net current-period other comprehensive income (86 ) 13 (73 ) (126 ) 7 (119 ) Ending balance $ 409 $ (38 ) $ 371 $ 409 $ (38 ) $ 371 Three Months Ended Nine Months Ended September 30, 2017 Foreign currency Unrealized holding losses on available-for-sale Total Foreign Unrealized available-for-sale Total (In thousands) Beginning balance $ 418 $ (19 ) $ 399 $ 343 $ (22 ) $ 321 Other comprehensive income (loss) before reclassification 39 5 44 114 8 122 Amounts reclassified from other comprehensive income — — — — — — Net current-period other comprehensive income (loss) 39 5 44 114 8 122 Ending balance $ 457 $ (14 ) $ 443 $ 457 $ (14 ) $ 443 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
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 for the three and nine months ended September 29, 2018 and September 30, 2017: Three Months Ended Nine Months Ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 (In thousands, except per share amounts) Net income (loss) $ (1,099 ) $ 1,230 $ (6,402 ) $ 4,159 Weighted-average shares – basic 22,719 21,714 22,429 21,475 Effect of dilutive potential common shares — 1,256 — 1,514 Weighted-average shares – diluted 22,719 22,970 22,429 22,989 Net income (loss) per share – basic $ (0.05 ) $ 0.06 $ (0.29 ) $ 0.19 Net income (loss) per share –diluted $ (0.05 ) $ 0.05 $ (0.29 ) $ 0.18 |
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 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 (In thousands) Stock options to purchase common stock 2,089 826 2,089 834 RSUs 463 — 463 — Employee stock purchase plan 800 — 800 — |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Information for Each Reportable Segment | Information for each reportable segment for the three and nine months ended September 29, 2018 and September 30, 2017 is as follows: Net Revenues Three Months Ended Nine Months Ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 (In thousands) TFE $ 12,108 $ 17,177 $ 45,745 $ 61,087 Photonics 7,358 9,549 17,793 26,990 Total segment net revenues $ 19,466 $ 26,726 $ 63,538 $ 88,077 Operating Income (Loss) Three Months Ended Nine Months Ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 (In thousands) TFE $ (907 ) $ 1,213 $ (2,197 ) $ 4,821 Photonics 688 1,417 (966 ) 3,646 Total segment operating income (loss) (219 ) 2,630 (3,163 ) 8,467 Unallocated costs (874 ) (1,362 ) (2,986 ) (3,768 ) Income (loss) from operations (1,093 ) 1,268 (6,149 ) 4,699 Interest income and other income (expense), net 186 28 464 265 Income (loss) before income taxes $ (907 ) $ 1,296 $ (5,685 ) $ 4,964 |
Assets for Each Reportable Segment | Total assets for each reportable segment as of September 29, 2018 and December 30, 2017 are as follows: Assets September 29, 2018 December 30, 2017 (In thousands) TFE $ 48,961 $ 52,156 Photonics 17,007 16,364 Total segment assets 65,968 68,520 Cash, cash equivalents and investments 44,092 42,488 Restricted cash 1,569 1,000 Deferred income taxes 4 4 Other current assets 1,201 1,001 Common property, plant and equipment 1,060 1,267 Other assets 723 743 Consolidated total assets $ 114,617 $ 115,023 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Changes in Restructuring Reserves | The changes in restructuring reserves associated with the Plan for the nine months ended September 29, 2018 are as follows. Nine Months Ended September 29, 2018 Severance and employee- related costs (In thousands) Beginning balance $ — Provision for restructuring reserves 95 Cash payments made (95 ) Ending balance $ — |
Description of Business and B_2
Description of Business and Basis of Presentation - Additional Information (Detail) | 9 Months Ended |
Sep. 29, 2018Segment | |
Description Of Business And Basis Of Presentation [Line Items] | |
Number of reportable segments | 2 |
Effect of Changes in Balance Sh
Effect of Changes in Balance Sheet Due to Adoption of New Revenue Standard (Detail) - USD ($) $ in Thousands | Sep. 29, 2018 | Dec. 31, 2017 | Dec. 30, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Other accrued liabilities | $ 10,995 | $ 7,688 | |
Accumulated deficit | (74,917) | $ (66,881) | |
Accounting Standards Update 2014-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Other accrued liabilities | 9,697 | $ 9,322 | |
Accumulated deficit | (73,619) | (68,515) | |
Accounting Standards Update 2014-09 | Difference Between Revenue Guidance in Effect Before and After Topic 606 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Other accrued liabilities | 1,298 | 1,634 | |
Accumulated deficit | $ (1,298) | $ (1,634) |
Impact of adoption of New Reven
Impact of adoption of New Revenue Standard on Statement of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Systems and components revenues | $ 19,466 | $ 26,726 | $ 63,538 | $ 88,077 |
Gross profit | 7,486 | 11,298 | 22,122 | 35,816 |
Income (loss) from operations | (1,093) | 1,268 | (6,149) | 4,699 |
Income (loss) before income taxes | (907) | 1,296 | (5,685) | 4,964 |
Net loss | (1,099) | 1,230 | (6,402) | 4,159 |
Systems and components | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Systems and components revenues | 17,140 | $ 24,537 | 55,947 | $ 82,822 |
Calculated under Revenue Guidance in Effect before Topic 606 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Systems and components revenues | 19,359 | 63,202 | ||
Gross profit | 7,379 | 21,786 | ||
Income (loss) from operations | (1,200) | (6,485) | ||
Income (loss) before income taxes | (1,014) | (6,021) | ||
Net loss | (1,206) | (6,738) | ||
Calculated under Revenue Guidance in Effect before Topic 606 | Systems and components | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Systems and components revenues | 17,033 | 55,611 | ||
Accounting Standards Update 2014-09 | Difference Between Revenue Guidance in Effect Before and After Topic 606 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Systems and components revenues | 107 | 336 | ||
Gross profit | 107 | 336 | ||
Income (loss) from operations | 107 | 336 | ||
Income (loss) before income taxes | 107 | 336 | ||
Net loss | 107 | 336 | ||
Accounting Standards Update 2014-09 | Difference Between Revenue Guidance in Effect Before and After Topic 606 | Systems and components | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Systems and components revenues | $ 107 | $ 336 |
Impact of New Revenue Standard
Impact of New Revenue Standard on Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Sep. 29, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Jan. 01, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Other accrued liabilities | $ 10,995 | $ 7,688 | |||||
Total current liabilities | 32,839 | 29,481 | |||||
Accumulated deficit | (74,917) | (66,881) | |||||
Total stockholders' equity | 79,342 | $ 78,586 | $ 82,663 | $ 81,418 | $ 78,107 | $ 73,266 | |
Accounting Standards Update 2014-09 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Other accrued liabilities | 9,697 | $ 9,322 | |||||
Total current liabilities | 31,541 | ||||||
Accumulated deficit | (73,619) | (68,515) | |||||
Total stockholders' equity | 80,640 | ||||||
Accounting Standards Update 2014-09 | Difference Between Revenue Guidance in Effect Before and After Topic 606 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Other accrued liabilities | 1,298 | 1,634 | |||||
Total current liabilities | 1,298 | ||||||
Accumulated deficit | (1,298) | $ (1,634) | |||||
Total stockholders' equity | $ (1,298) |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue from Contracts with Customers (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | $ 19,466 | $ 26,726 | $ 63,538 | $ 88,077 |
TFE | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 12,108 | 17,177 | 45,745 | 61,087 |
TFE | Systems, Upgrades and Spare Parts | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 9,527 | 15,895 | 39,145 | 57,284 |
TFE | Field Service | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 2,581 | 1,282 | 6,600 | 3,803 |
Photonics | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 7,358 | 9,549 | 17,793 | 26,990 |
HDD | TFE | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 12,057 | 16,902 | 45,651 | 38,678 |
HDD | TFE | Systems, Upgrades and Spare Parts | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 9,476 | 15,620 | 39,090 | 34,875 |
HDD | TFE | Field Service | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 2,581 | 1,282 | 6,561 | 3,803 |
DCP | TFE | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 1 | 13,138 | ||
DCP | TFE | Systems, Upgrades and Spare Parts | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 1 | 13,138 | ||
PV | TFE | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 51 | 275 | 93 | 9,271 |
PV | TFE | Systems, Upgrades and Spare Parts | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 51 | 275 | 54 | 9,271 |
PV | TFE | Field Service | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 39 | |||
Military Products | Photonics | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 4,202 | 6,989 | 8,601 | 20,908 |
Commercial Products | Photonics | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 84 | 38 | 138 | 100 |
Repair and Other Services | Photonics | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 746 | 333 | 1,463 | 727 |
Product | Photonics | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 5,032 | 7,360 | 10,202 | 21,735 |
FFP | Photonics | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 494 | 728 | 1,726 | 2,724 |
CPFF | Photonics | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 1,819 | 1,446 | 5,829 | 2,516 |
Times and Materials | Photonics | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 13 | 15 | 36 | 15 |
Technology Development | Photonics | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | $ 2,326 | $ 2,189 | $ 7,591 | $ 5,255 |
Revenue - Primary Geographical
Revenue - Primary Geographical Markets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | $ 19,466 | $ 26,726 | $ 63,538 | $ 88,077 |
Products Transferred at a Point in Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 12,854 | 47,208 | ||
Products and Services Transferred Over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 6,612 | 16,330 | ||
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 7,155 | 10,294 | 20,177 | 29,879 |
Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 11,821 | 15,807 | 42,227 | 57,062 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 457 | 94 | 937 | 605 |
Rest of World | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 33 | 531 | 197 | 531 |
TFE | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 12,108 | 17,177 | 45,745 | 61,087 |
TFE | Products Transferred at a Point in Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 12,108 | 45,745 | ||
TFE | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 287 | 1,370 | 3,549 | 4,033 |
TFE | Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 11,821 | 15,807 | 42,196 | 57,054 |
Photonics | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 7,358 | 9,549 | 17,793 | 26,990 |
Photonics | Products Transferred at a Point in Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 746 | 1,463 | ||
Photonics | Products and Services Transferred Over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 6,612 | 16,330 | ||
Photonics | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 6,868 | 8,924 | 16,628 | 25,846 |
Photonics | Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 31 | 8 | ||
Photonics | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 457 | 94 | 937 | 605 |
Photonics | Rest of World | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | $ 33 | $ 531 | $ 197 | $ 531 |
Revenue - Changes in Contract A
Revenue - Changes in Contract Assets and Contract Liabilities (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 29, 2018 | Dec. 30, 2017 | |
TFE | ||
Revenue From Contract With Customers [Line Items] | ||
Contract liabilities | $ 17,266 | $ 15,394 |
Contract liabilities: | ||
Change in contract liabilities | 1,872 | |
TFE | Accounts Receivable, Unbilled | ||
Revenue From Contract With Customers [Line Items] | ||
Contract assets | 517 | 1,368 |
Contract liabilities: | ||
Change in contract assets | (851) | |
TFE | Deferred Revenue | ||
Revenue From Contract With Customers [Line Items] | ||
Contract liabilities | 6,200 | 5,190 |
Contract liabilities: | ||
Change in contract liabilities | 1,010 | |
TFE | Customer Advances | ||
Revenue From Contract With Customers [Line Items] | ||
Contract liabilities | 11,066 | 10,204 |
Contract liabilities: | ||
Change in contract liabilities | 862 | |
Photonics | ||
Revenue From Contract With Customers [Line Items] | ||
Contract assets | 1,621 | 1,627 |
Contract liabilities | 1,867 | 919 |
Contract liabilities: | ||
Change in contract assets | (6) | |
Change in contract liabilities | 948 | |
Photonics | Accounts Receivable, Unbilled | ||
Revenue From Contract With Customers [Line Items] | ||
Contract assets | 1,476 | 1,346 |
Contract liabilities: | ||
Change in contract assets | 130 | |
Photonics | Deferred Revenue | ||
Revenue From Contract With Customers [Line Items] | ||
Contract liabilities | 1,317 | 97 |
Contract liabilities: | ||
Change in contract liabilities | 1,220 | |
Photonics | Retainage | ||
Revenue From Contract With Customers [Line Items] | ||
Contract assets | 145 | 281 |
Contract liabilities: | ||
Change in contract assets | (136) | |
Photonics | Customer Advances | ||
Revenue From Contract With Customers [Line Items] | ||
Contract liabilities | 550 | $ 822 |
Contract liabilities: | ||
Change in contract liabilities | $ (272) |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) | 9 Months Ended | |
Sep. 29, 2018USD ($)Installment | Dec. 30, 2017USD ($) | |
Revenue From Contract With Customers [Line Items] | ||
Revenue remaining performance obligation | $ 72,200,000 | |
Revenue performance obligation, description of timing | We expect to recognize approximately 44% of our remaining performance obligations as revenue in 2018, 52% in 2019 and 4% in 2020. | |
TFE | ||
Revenue From Contract With Customers [Line Items] | ||
Contract liabilities | $ 17,266,000 | $ 15,394,000 |
Revenue remaining performance obligation | $ 63,600,000 | |
TFE | Accounts Receivable, Unbilled | ||
Revenue From Contract With Customers [Line Items] | ||
Number of installments | Installment | 3 | |
Change in contract assets | $ (851,000) | |
TFE | Customer Advances | ||
Revenue From Contract With Customers [Line Items] | ||
Contract with customer liability revenue recognized | 6,600,000 | |
Contract liabilities | 11,066,000 | 10,204,000 |
TFE | Deferred Revenue | ||
Revenue From Contract With Customers [Line Items] | ||
Contract with customer liability revenue recognized | 69,000 | |
Contract liabilities | 6,200,000 | 5,190,000 |
Photonics | ||
Revenue From Contract With Customers [Line Items] | ||
Change in contract assets | (6,000) | |
Contract liabilities | 1,867,000 | 919,000 |
Revenue remaining performance obligation | 8,600,000 | |
Photonics | Accounts Receivable, Unbilled | ||
Revenue From Contract With Customers [Line Items] | ||
Change in contract assets | 130,000 | |
Photonics | Customer Advances | ||
Revenue From Contract With Customers [Line Items] | ||
Contract with customer liability revenue recognized | 536,000 | |
Contract liabilities | 550,000 | 822,000 |
Photonics | Deferred Revenue | ||
Revenue From Contract With Customers [Line Items] | ||
Contract with customer liability revenue recognized | 324,000 | |
Contract liabilities | $ 1,317,000 | $ 97,000 |
Inventories Stated at Lower of
Inventories Stated at Lower of Average Cost or Market (Detail) - USD ($) $ in Thousands | Sep. 29, 2018 | Dec. 30, 2017 |
Inventory [Line Items] | ||
Raw materials | $ 14,746 | $ 19,881 |
Work-in-progress | 15,493 | 9,433 |
Finished goods | 4,440 | 4,478 |
Inventories | $ 34,679 | $ 33,792 |
Equity-Based Compensation - Add
Equity-Based Compensation - Additional information (Detail) | 1 Months Ended | 9 Months Ended | ||
Feb. 28, 2017Employee$ / sharesshares | Sep. 29, 2018shares | Sep. 30, 2017USD ($) | Jan. 01, 2017USD ($) | |
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 | 410,522 | |||
RSU conversion ratio | 100.00% | |||
Annual incentive plan stock awards granted | 421,125 | |||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of participants in restricted stock grants awarded | Employee | 33 | |||
Annual incentive plan stock awards granted | 134,000 | |||
Weighted-average fair value of grants per share | $ / shares | $ 9.63 | |||
Annual incentive plan equity-based compensation expense | $ | $ 102,000 | |||
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 |
Effect of Recording Equity-Base
Effect of Recording Equity-Based Compensation (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-based compensation | $ 852 | $ 1,148 | $ 2,454 | $ 3,012 |
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-based compensation | 213 | 350 | 563 | 808 |
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-based compensation | 309 | 731 | 945 | 1,943 |
Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-based compensation | $ 330 | $ 67 | $ 946 | $ 261 |
Option Activity and Changes (De
Option Activity and Changes (Detail) | 9 Months Ended |
Sep. 29, 2018$ / sharesshares | |
Shares | |
Options outstanding at December 30, 2017 | shares | 2,925,861 |
Options granted | shares | 421,125 |
Options cancelled and forfeited | shares | (936,428) |
Options exercised | shares | (321,190) |
Options outstanding at September 29, 2018 | shares | 2,089,368 |
Options exercisable at September 29, 2018 | shares | 1,331,565 |
Weighted Average Exercise Price | |
Options outstanding at December 30, 2017 | $ / shares | $ 7.62 |
Options granted | $ / shares | 5.13 |
Options cancelled and forfeited | $ / shares | 9.31 |
Options exercised | $ / shares | 4.87 |
Options outstanding at September 29, 2018 | $ / shares | 6.78 |
Options exercisable at September 29, 2018 | $ / shares | $ 6.60 |
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. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Stock Options | ||||
Weighted-average assumptions | ||||
Weighted-average fair value of grants per share | $ 1.81 | $ 3.89 | $ 1.98 | $ 4.54 |
Expected volatility | 44.10% | 42.10% | 43.83% | 40.54% |
Risk-free interest rate | 2.87% | 1.84% | 2.58% | 1.77% |
Expected term of options (in years) | 3 years 10 months 24 days | 4 years 29 days | 4 years 4 months 28 days | 4 years 1 month 6 days |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Stock Purchase Rights | ||||
Weighted-average assumptions | ||||
Weighted-average fair value of grants per share | $ 1.87 | $ 2.76 | $ 2.24 | $ 2.75 |
Expected volatility | 50.64% | 48.59% | 47.64% | 43.51% |
Risk-free interest rate | 2.58% | 1.36% | 2.01% | 1.22% |
Expected term of options (in years) | 1 year 6 months 29 days | 6 months | 1 year 3 months 29 days | 7 months 24 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. 29, 2018$ / sharesshares | |
Shares | |
Non-vested RSUs at December 30, 2017 | shares | 769,451 |
Granted | shares | 217,917 |
Vested | shares | (425,956) |
Cancelled and forfeited | shares | (98,737) |
Non-vested RSUs at September 29, 2018 | shares | 462,675 |
Weighted Average Grant Date Fair Value | |
Non-vested RSUs at December 30, 2017 | $ / shares | $ 7.84 |
Granted | $ / shares | 5.07 |
Vested | $ / shares | 7.15 |
Cancelled and forfeited | $ / shares | 8.74 |
Non-vested RSUs at September 29, 2018 | $ / shares | $ 6.98 |
Details of Finite-lived Intangi
Details of Finite-lived Intangible Assets by Segment (Detail) - USD ($) $ in Thousands | Sep. 29, 2018 | Dec. 30, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived, Gross Carrying Amount | $ 8,387 | |
Accumulated Amortization | (7,345) | $ (6,884) |
Finite Lived, Net Carrying Amount | 1,042 | $ 1,503 |
TFE | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived, Gross Carrying Amount | 7,172 | |
Accumulated Amortization | (6,220) | |
Finite Lived, Net Carrying Amount | 952 | |
Photonics | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived, Gross Carrying Amount | 1,215 | |
Accumulated Amortization | (1,125) | |
Finite Lived, Net Carrying Amount | $ 90 |
Purchased Intangible Assets - A
Purchased Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended |
Sep. 29, 2018 | Sep. 29, 2018 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Total amortization expense of finite-lived intangibles | $ 154,000 | $ 461,000 |
Future Amortization Expense (De
Future Amortization Expense (Detail) - USD ($) $ in Thousands | Sep. 29, 2018 | Dec. 30, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
2,018 | $ 154 | |
2,019 | 615 | |
2,020 | 273 | |
Finite Lived, Net Carrying Amount | $ 1,042 | $ 1,503 |
Acquisition-Related Contingen_3
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. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Business Acquisition, Contingent Consideration [Line Items] | ||||
Opening balance | $ 370 | $ 859 | $ 362 | $ 759 |
Changes in fair value | 0 | (283) | 8 | (181) |
Cash payments made | (172) | (174) | ||
Closing balance | $ 370 | $ 404 | $ 370 | $ 404 |
Balance Sheet Classification of
Balance Sheet Classification of Contingent Consideration Liability (Detail) - USD ($) $ in Thousands | Sep. 29, 2018 | Dec. 30, 2017 |
Business Combination, Transactions [Line Items] | ||
Other accrued liabilities | $ 370 | $ 362 |
Other accrued liabilities | ||
Business Combination, Transactions [Line Items] | ||
Other accrued liabilities | $ 370 | 103 |
Other long-term liabilities | ||
Business Combination, Transactions [Line Items] | ||
Other accrued liabilities | $ 259 |
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. 29, 2018 | Dec. 30, 2017 | |
Business Acquisition, Contingent Consideration [Line Items] | ||
Fair Value | $ 370 | $ 362 |
Fair Value, Inputs, Level 3 | Revenue Earnout | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Valuation technique | Discounted cash flow | |
Fair Value | $ 370 | |
Fair Value, Inputs, Level 3 | Revenue Earnout | Weighted Average | Measurement Input, Discount Rate | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Weighted average cost of capital | 12.10% |
Warranty - Additional Informati
Warranty - Additional Information (Detail) | 9 Months Ended |
Sep. 29, 2018 | |
Warranties [Line Items] | |
Minimum product warranty range | 12 months |
Maximum product warranty range | 24 months |
Activity in Warranty Provision
Activity in Warranty Provision Account (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Accrued Warranty [Line Items] | ||||
Opening balance | $ 911 | $ 1,220 | $ 994 | $ 1,007 |
Expenditures incurred under warranties | (51) | (360) | (469) | (640) |
Accruals for product warranties issued during the reporting period | 68 | 169 | 347 | 675 |
Adjustments to previously existing warranty accruals | (139) | 106 | (83) | 93 |
Closing balance | $ 789 | $ 1,135 | $ 789 | $ 1,135 |
Balance Sheet Classification _2
Balance Sheet Classification of Warranty Provision Account (Detail) - USD ($) $ in Thousands | Sep. 29, 2018 | Jun. 30, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Jan. 01, 2017 |
Product Warranty [Line Items] | ||||||
Other accrued liabilities | $ 622 | $ 757 | ||||
Other long-term liabilities | 167 | 237 | ||||
Total warranty provision | $ 789 | $ 911 | $ 994 | $ 1,135 | $ 1,220 | $ 1,007 |
Guarantees - Additional Informa
Guarantees - Additional Information (Detail) $ in Millions | Sep. 29, 2018USD ($) |
Guarantor Obligations [Line Items] | |
Letters of credit and bank guarantees outstanding, amount | $ 1.6 |
Letters of credit and bank guarantees collateralized by restricted cash | $ 1.6 |
Cash, Cash Equivalents and Shor
Cash, Cash Equivalents and Short-Term Investments and Long-Term Investments (Detail) - USD ($) $ in Thousands | Sep. 29, 2018 | Dec. 30, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 44,130 | $ 42,533 |
Unrealized Holdings Gains | 3 | 1 |
Unrealized Holdings Losses | 41 | 46 |
Fair Value | 44,092 | 42,488 |
Cash and Cash Equivalents | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 21,753 | 19,941 |
Fair Value | 21,753 | 19,941 |
Cash and Cash Equivalents | U.S. treasury and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 809 | |
Fair Value | 809 | |
Cash and Cash Equivalents | Cash | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 15,408 | 13,195 |
Fair Value | 15,408 | 13,195 |
Cash and Cash Equivalents | Money market funds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 5,536 | 6,746 |
Fair Value | 5,536 | 6,746 |
Short-term Investments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 17,199 | 15,710 |
Unrealized Holdings Gains | 2 | 1 |
Unrealized Holdings Losses | 26 | 13 |
Fair Value | 17,175 | 15,698 |
Short-term Investments | Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 499 | 500 |
Unrealized Holdings Losses | 2 | 3 |
Fair Value | 497 | 497 |
Short-term Investments | U.S. treasury and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 5,123 | 4,917 |
Unrealized Holdings Losses | 12 | 4 |
Fair Value | 5,111 | 4,913 |
Short-term Investments | Corporate bonds and medium-term notes | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 3,054 | 4,502 |
Unrealized Holdings Losses | 12 | 5 |
Fair Value | 3,042 | 4,497 |
Short-term Investments | Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 5,797 | 2,500 |
Unrealized Holdings Gains | 2 | 1 |
Unrealized Holdings Losses | 1 | |
Fair Value | 5,799 | 2,500 |
Short-term Investments | Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,726 | 3,291 |
Fair Value | 2,726 | 3,291 |
Other Long-term Investments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 5,178 | 6,882 |
Unrealized Holdings Gains | 1 | |
Unrealized Holdings Losses | 15 | 33 |
Fair Value | 5,164 | 6,849 |
Other Long-term Investments | Asset backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 500 | |
Fair Value | 500 | |
Other Long-term Investments | U.S. treasury and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 999 | 1,998 |
Unrealized Holdings Losses | 9 | 12 |
Fair Value | 990 | 1,986 |
Other Long-term Investments | Corporate bonds and medium-term notes | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 3,679 | 4,384 |
Unrealized Holdings Gains | 1 | |
Unrealized Holdings Losses | 6 | 21 |
Fair Value | 3,674 | $ 4,363 |
Other Long-term Investments | Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 500 | |
Fair Value | $ 500 |
Contractual Maturities of Avail
Contractual Maturities of Available-For-Sale Securities (Detail) $ in Thousands | Sep. 29, 2018USD ($) |
Amortized Cost | |
Amortized Cost, Due in one year or less | $ 23,544 |
Amortized Cost, Due after one through two years | 5,178 |
Amortized Cost | 28,722 |
Fair Value | |
Fair Value, Due in one year or less | 23,520 |
Fair Value, Due after one through two years | 5,164 |
Fair Value | $ 28,684 |
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. 29, 2018USD ($) |
Debt Securities, Available-for-sale [Line Items] | |
Unrealized Loss Position, Less than 12 Months, Fair Value | $ 6,440 |
Unrealized Loss Position, Less than 12 Months, Gross Unrealized Losses | 22 |
Unrealized Loss Position, Greater than 12 Months, Fair Value | 4,537 |
Unrealized Loss Position, Greater than 12 Months, Gross Unrealized Losses | 19 |
Corporate bonds and medium-term notes | |
Debt Securities, Available-for-sale [Line Items] | |
Unrealized Loss Position, Less than 12 Months, Fair Value | 2,925 |
Unrealized Loss Position, Less than 12 Months, Gross Unrealized Losses | 10 |
Unrealized Loss Position, Greater than 12 Months, Fair Value | 1,950 |
Unrealized Loss Position, Greater than 12 Months, Gross Unrealized Losses | 8 |
Municipal bonds | |
Debt Securities, Available-for-sale [Line Items] | |
Unrealized Loss Position, Less than 12 Months, Fair Value | 497 |
Unrealized Loss Position, Less than 12 Months, Gross Unrealized Losses | 2 |
U.S. treasury and agency securities | |
Debt Securities, Available-for-sale [Line Items] | |
Unrealized Loss Position, Less than 12 Months, Fair Value | 3,018 |
Unrealized Loss Position, Less than 12 Months, Gross Unrealized Losses | 10 |
Unrealized Loss Position, Greater than 12 Months, Fair Value | 2,587 |
Unrealized Loss Position, Greater than 12 Months, Gross Unrealized Losses | $ 11 |
Fair Value Hierarchy of Availab
Fair Value Hierarchy of Available-for-Sale Securities Measured at Fair Value on Recurring Basis (Detail) $ in Thousands | Sep. 29, 2018USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | $ 28,684 |
Fair Value, Measurements, Recurring | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 28,684 |
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 | 5,536 |
Fair Value, Measurements, Recurring | Certificates of deposit | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 6,299 |
Fair Value, Measurements, Recurring | Commercial paper | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 2,726 |
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 | 6,910 |
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 | 6,716 |
Fair Value, Measurements, Recurring | Municipal bonds | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 497 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 11,449 |
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 | 5,536 |
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 | 5,913 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 17,235 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Certificates of deposit | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 6,299 |
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 | 2,726 |
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 | 997 |
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 | 6,716 |
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 | $ 497 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) | 9 Months Ended |
Sep. 29, 2018 | |
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. 29, 2018 | Dec. 30, 2017 | |
Derivatives, Fair Value [Line Items] | |||
Notional Amounts | $ 1,470 | $ 1,276 | |
Derivative Liabilities | 7 | 5 | |
Forward foreign currency contracts | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amounts | 1,470 | 1,276 | |
Derivative Liabilities | [1] | $ 7 | $ 5 |
[1] | Other accrued liabilities |
Equity - Schedule of Changes in
Equity - Schedule of Changes in Stockholders' Equity (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Beginning balance | $ 78,586 | $ 78,107 | $ 82,663 | $ 73,266 |
Cumulative effect of accounting change | (1,634) | (1,634) | ||
Common stock issued under employee plans | 1,076 | 889 | 2,380 | 356 |
Grant of RSUs to settle accrued bonus | 605 | |||
Equity-based compensation expense | 852 | 1,148 | 2,454 | 2,910 |
Net income | (1,099) | 1,230 | (6,402) | 4,159 |
Other comprehensive income (loss) | (73) | 44 | (119) | 122 |
Ending balance | 79,342 | 81,418 | 79,342 | 81,418 |
Common Stock and Additional Paid-in Capital [Member] | ||||
Beginning balance | 180,449 | 174,267 | 177,543 | 171,335 |
Cumulative effect of accounting change | 1,098 | 1,098 | ||
Common stock issued under employee plans | 1,076 | 889 | 2,380 | 356 |
Grant of RSUs to settle accrued bonus | 605 | |||
Equity-based compensation expense | 852 | 1,148 | 2,454 | 2,910 |
Ending balance | 182,377 | 176,304 | 182,377 | 176,304 |
Treasury Stock | ||||
Beginning balance | (28,489) | (28,489) | (28,489) | (28,489) |
Ending balance | (28,489) | (28,489) | (28,489) | (28,489) |
Accumulated Other Comprehensive Income | ||||
Beginning balance | 444 | 399 | 490 | 321 |
Other comprehensive income (loss) | (73) | 44 | (119) | 122 |
Ending balance | 371 | 443 | 371 | 443 |
Accumulated Deficit | ||||
Beginning balance | (73,818) | (68,070) | (66,881) | (69,901) |
Cumulative effect of accounting change | (1,634) | (1,098) | (1,634) | (1,098) |
Net income | (1,099) | 1,230 | (6,402) | 4,159 |
Ending balance | $ (74,917) | $ (66,840) | $ (74,917) | $ (66,840) |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income by Component (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ 78,586 | $ 78,107 | $ 82,663 | $ 73,266 |
Other comprehensive income (loss) before reclassification | (73) | 44 | (119) | 122 |
Amounts reclassified from other comprehensive income | 0 | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | (73) | 44 | (119) | 122 |
Ending balance | 79,342 | 81,418 | 79,342 | 81,418 |
Foreign currency | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 495 | 418 | 535 | 343 |
Other comprehensive income (loss) before reclassification | (86) | 39 | (126) | 114 |
Amounts reclassified from other comprehensive income | 0 | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | (86) | 39 | (126) | 114 |
Ending balance | 409 | 457 | 409 | 457 |
Unrealized holding losses on available-for-sale investments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (51) | (19) | (45) | (22) |
Other comprehensive income (loss) before reclassification | 13 | 5 | 7 | 8 |
Amounts reclassified from other comprehensive income | 0 | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | 13 | 5 | 7 | 8 |
Ending balance | (38) | (14) | (38) | (14) |
Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 444 | 399 | 490 | 321 |
Amounts reclassified from other comprehensive income | 0 | 0 | 0 | 0 |
Ending balance | $ 371 | $ 443 | $ 371 | $ 443 |
Equity - Additional Information
Equity - Additional Information (Detail) - USD ($) shares in Millions | Aug. 15, 2018 | Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | Nov. 21, 2013 |
Equity, Class of Treasury Stock [Line Items] | ||||||
Stock repurchase authorized amount | $ 40,000,000 | $ 30,000,000 | ||||
Stock repurchase remained available for future stock repurchase | $ 11,500,000 | $ 11,500,000 | ||||
Stock repurchased | 0 | 0 | 0 | 0 | ||
Increase in stock repurchase program | $ 10,000,000 |
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. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Schedule Of Computation Of Basic And Diluted Earnings Per Common Share [Line Items] | ||||
Net income (loss) | $ (1,099) | $ 1,230 | $ (6,402) | $ 4,159 |
Weighted-average shares - basic | 22,719 | 21,714 | 22,429 | 21,475 |
Effect of dilutive potential common shares | 1,256 | 1,514 | ||
Weighted-average shares - diluted | 22,719 | 22,970 | 22,429 | 22,989 |
Net income (loss) per share - basic | $ (0.05) | $ 0.06 | $ (0.29) | $ 0.19 |
Net income (loss) per share -diluted | $ (0.05) | $ 0.05 | $ (0.29) | $ 0.18 |
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. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Stock Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of diluted net income (loss) per share | 2,089 | 826 | 2,089 | 834 |
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 | 463 | 463 | ||
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 | 800 | 800 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 9 Months Ended |
Sep. 29, 2018Segment | |
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. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Total segment net revenues | $ 19,466 | $ 26,726 | $ 63,538 | $ 88,077 |
Income (loss) from operations | (1,093) | 1,268 | (6,149) | 4,699 |
Interest income and other income (expense), net | 186 | 28 | 464 | 265 |
Income (loss) before income taxes | (907) | 1,296 | (5,685) | 4,964 |
TFE | ||||
Segment Reporting Information [Line Items] | ||||
Total segment net revenues | 12,108 | 17,177 | 45,745 | 61,087 |
Photonics | ||||
Segment Reporting Information [Line Items] | ||||
Total segment net revenues | 7,358 | 9,549 | 17,793 | 26,990 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Income (loss) from operations | (219) | 2,630 | (3,163) | 8,467 |
Operating Segments | TFE | ||||
Segment Reporting Information [Line Items] | ||||
Income (loss) from operations | (907) | 1,213 | (2,197) | 4,821 |
Operating Segments | Photonics | ||||
Segment Reporting Information [Line Items] | ||||
Income (loss) from operations | 688 | 1,417 | (966) | 3,646 |
Unallocated Amount to Segment | ||||
Segment Reporting Information [Line Items] | ||||
Unallocated costs | $ (874) | $ (1,362) | $ (2,986) | $ (3,768) |
Assets for Each Reportable Segm
Assets for Each Reportable Segment (Detail) - USD ($) $ in Thousands | Sep. 29, 2018 | Dec. 30, 2017 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Cash, cash equivalents and investments | $ 44,092 | $ 42,488 |
Restricted cash | 1,569 | 1,000 |
Deferred income taxes | 4 | 4 |
Other current assets | 1,201 | 1,001 |
Common property, plant and equipment | 1,060 | 1,267 |
Other assets | 723 | 743 |
Consolidated total assets | 114,617 | 115,023 |
Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated total assets | 65,968 | 68,520 |
Operating Segments | TFE | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated total assets | 48,961 | 52,156 |
Operating Segments | Photonics | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated total assets | $ 17,007 | $ 16,364 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | Dec. 30, 2017 | |
Income Taxes [Line Items] | |||||
Provision for income taxes | $ 192 | $ 66 | $ 717 | $ 805 | |
Corporate tax rate | 21.00% | 35.00% | |||
Deposit for contested taxes and related interest | 723 | $ 723 | $ 743 | ||
Audit Consideration | Foreign Tax Authority | |||||
Income Taxes [Line Items] | |||||
Provision for income taxes | $ 200 | $ 200 | |||
Inland Revenue, Singapore (IRAS) | |||||
Income Taxes [Line Items] | |||||
Deposit for contested taxes and related interest | $ 723 | $ 723 | $ 743 |
Restructuring Charges - Additio
Restructuring Charges - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Percentage of reduction of global workforce | 6.00% |
Reduction in salary, wages and other employee-related expenses due to implementation of plan | $ 1.8 |
Changes in Restructuring Reserv
Changes in Restructuring Reserves (Detail) - Severance And Other Employee Related Costs $ in Thousands | 9 Months Ended |
Sep. 29, 2018USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Beginning balance | $ 0 |
Provision for restructuring reserves | 95 |
Cash payments made | (95) |
Ending balance | $ 0 |