Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Jan. 03, 2015 | Feb. 12, 2015 | Jun. 28, 2014 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 3-Jan-15 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | IVAC | ||
Entity Registrant Name | INTEVAC INC | ||
Entity Central Index Key | 1001902 | ||
Current Fiscal Year End Date | -2 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 23,300,170 | ||
Entity Public Float | $105,633,087 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jan. 03, 2015 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $21,482 | $20,121 |
Short-term investments | 29,598 | 48,975 |
Trade and other accounts receivable, net of allowances of $0 at both January 3, 2015 and December 31, 2013 . | 12,087 | 15,037 |
Inventories | 19,212 | 22,762 |
Prepaid expenses and other current assets | 1,727 | 1,237 |
Total current assets | 84,106 | 108,132 |
Property, plant and equipment, net | 12,826 | 12,945 |
Long-term investments | 17,542 | 12,318 |
Restricted cash | 1,780 | |
Intangible assets, net of amortization of $4,421 and $3,485 at January 3, 2015 and December 31, 2013, respectively | 3,966 | 4,902 |
Deferred income taxes and other long-term assets | 55 | 9,979 |
Total assets | 120,275 | 148,276 |
Current liabilities: | ||
Accounts payable | 4,640 | 4,011 |
Accrued payroll and related liabilities | 3,977 | 5,034 |
Other accrued liabilities | 8,272 | 3,263 |
Customer advances | 2,551 | 3,743 |
Deferred income taxes | 5 | 939 |
Total current liabilities | 19,445 | 16,990 |
Other long-term liabilities | 2,200 | 1,715 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Undesignated preferred stock, $0.001 par value, 10,000 shares authorized, no shares issued and outstanding | ||
Common stock, $0.001 par value : Authorized shares - 50,000 issued and outstanding shares - 23,275 and 23,767 at January 3, 2015 and December 31, 2013, respectively | 23 | 24 |
Additional paid-in-capital | 161,271 | 156,359 |
Treasury stock, 1,426 and 241 shares at January 3, 2015 and December 31, 2013, respectively | -9,989 | -1,688 |
Accumulated other comprehensive income | 619 | 725 |
Accumulated deficit | -53,294 | -25,849 |
Total stockholders' equity | 98,630 | 129,571 |
Total liabilities and stockholders' equity | $120,275 | $148,276 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Jan. 03, 2015 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Net of allowances of trade, note and other accounts receivable | $0 | $0 |
Net of amortization of intangible assets | $4,421 | $3,485 |
Undesignated preferred stock, par value | $0.00 | $0.00 |
Undesignated preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Undesignated preferred stock, shares issued | 0 | 0 |
Undesignated preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 23,275,000 | 23,767,000 |
Common stock, shares outstanding | 23,275,000 | 23,767,000 |
Treasury stock, shares | 1,426,000 | 241,000 |
Consolidated_Statements_Of_Ope
Consolidated Statements Of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jan. 03, 2015 | Dec. 31, 2013 | Dec. 31, 2012 |
Net revenues: | |||
Systems and components | $54,463 | $55,188 | $67,669 |
Technology development | 11,087 | 14,444 | 15,755 |
Total net revenues | 65,550 | 69,632 | 83,424 |
Cost of net revenues: | |||
Systems and components | 40,284 | 36,356 | 37,932 |
Technology development | 7,833 | 11,303 | 11,334 |
Total cost of net revenues | 48,117 | 47,659 | 49,266 |
Gross profit | 17,433 | 21,973 | 34,158 |
Operating expenses: | |||
Research and development | 15,832 | 21,037 | 31,762 |
Selling, general and administrative | 21,205 | 22,278 | 25,919 |
Acquisition-related (benefit), net | -250 | -3,727 | -219 |
Bad debt expense | 3,017 | ||
Impairment of goodwill and intangible assets | 18,419 | ||
Total operating expenses | 36,787 | 39,588 | 78,898 |
Gain (loss) on divestitures | -208 | 2,207 | |
Operating loss | -19,354 | -17,823 | -42,533 |
Interest income | 179 | 279 | 806 |
Other income (expense), net | 158 | 126 | -352 |
Income (loss) before income taxes | -19,017 | -17,418 | -42,079 |
Provision (benefit) for income taxes | 8,428 | -1,722 | 13,240 |
Net loss | ($27,445) | ($15,696) | ($55,319) |
Net loss per share: | |||
Basic and diluted | ($1.16) | ($0.66) | ($2.37) |
Weighted average shares outstanding: | |||
Basic and diluted | 23,671 | 23,832 | 23,336 |
Consolidated_Statements_Of_Com
Consolidated Statements Of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 31, 2013 | Dec. 31, 2012 |
Net loss | ($27,445) | ($15,696) | ($55,319) |
Other comprehensive income (loss), before tax | |||
Change in unrealized net loss on available-for-sale investments | -35 | -41 | 486 |
Foreign currency translation gains (losses) | -71 | -3 | 13 |
Other comprehensive income (loss), before tax | -106 | -44 | 499 |
Income tax expense related to items in other comprehensive income | -144 | ||
Other comprehensive income (loss), net of tax | -106 | -44 | 355 |
Comprehensive loss | ($27,551) | ($15,740) | ($54,964) |
Consolidated_Statement_of_Stoc
Consolidated Statement of Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Accumulated Deficit) |
In Thousands, except Share data, unless otherwise specified | ||||||
Beginning Balance at Dec. 31, 2011 | $191,910 | $23 | $146,307 | $414 | $45,166 | |
Beginning Balance (in shares) at Dec. 31, 2011 | 23,122,000 | |||||
Shares issued in connection with: | ||||||
Exercise of stock options (in shares) | 43,000 | |||||
Exercise of stock options | 143 | 143 | ||||
Employee stock purchase plan (in shares) | 301,000 | 301,000 | ||||
Employee stock purchase plan | 1,726 | 1,726 | ||||
Equity-based compensation expense | 3,820 | 3,820 | ||||
Net loss | -55,319 | -55,319 | ||||
Other comprehensive income | 355 | 355 | ||||
Ending Balance at Dec. 31, 2012 | 142,635 | 23 | 151,996 | 769 | -10,153 | |
Ending Balance (in shares) at Dec. 31, 2012 | 23,466,000 | |||||
Shares issued in connection with: | ||||||
Exercise of stock options (in shares) | 71,000 | |||||
Exercise of stock options | 276 | 276 | ||||
Settlement of restricted stock units (RSUs), Shares | 23,000 | |||||
Settlement of restricted stock units (RSUs) | 0 | 0 | 0 | 0 | 0 | 0 |
Employee stock purchase plan (in shares) | 457,000 | 457,000 | ||||
Employee stock purchase plan | 1,633 | 1 | 1,632 | |||
Shares withheld in connection with net share settlement of RSUs | -39 | -39 | ||||
Shares withheld in connection with net share settlement of RSUs, Shares | -9,000 | |||||
Equity-based compensation expense | 2,494 | 2,494 | ||||
Net loss | -15,696 | -15,696 | ||||
Other comprehensive income | -44 | -44 | ||||
Common stock repurchases | -1,688 | -1,688 | ||||
Common stock repurchases (in shares) | 241,000 | 241,000 | 241,000 | |||
Common stock repurchases, Shares | -241,000 | -241,000 | -241,000 | |||
Ending Balance at Dec. 31, 2013 | 129,571 | 24 | 156,359 | -1,688 | 725 | -25,849 |
Ending Balance (in shares) at Dec. 31, 2013 | 23,767,000 | 241,000 | ||||
Shares issued in connection with: | ||||||
Exercise of stock options (in shares) | 190,414 | 190,000 | ||||
Exercise of stock options | 948 | 948 | ||||
Settlement of restricted stock units (RSUs), Shares | 72,000 | |||||
Settlement of restricted stock units (RSUs) | 0 | 0 | 0 | 0 | 0 | 0 |
Employee stock purchase plan (in shares) | 444,000 | 444,000 | ||||
Employee stock purchase plan | 1,611 | 1,611 | ||||
Shares withheld in connection with net share settlement of RSUs | -92 | -92 | ||||
Shares withheld in connection with net share settlement of RSUs, Shares | -13,000 | |||||
Equity-based compensation expense | 2,445 | 2,445 | ||||
Net loss | -27,445 | -27,445 | ||||
Other comprehensive income | -106 | -106 | ||||
Common stock repurchases | -8,302 | -1 | -8,301 | |||
Common stock repurchases (in shares) | 1,185,000 | 1,185,000 | 1,185,000 | |||
Common stock repurchases, Shares | -1,185,000 | -1,185,000 | -1,185,000 | |||
Ending Balance at Jan. 03, 2015 | $98,630 | $23 | $161,271 | ($9,989) | $619 | ($53,294) |
Ending Balance (in shares) at Jan. 03, 2015 | 23,275,000 | 1,426,000 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities | |||
Net loss | ($27,445) | ($15,696) | ($55,319) |
Adjustments to reconcile net loss to net cash and cash equivalents used in operating activities: | |||
Depreciation & amortization | 3,769 | 3,642 | 3,936 |
Net amortization (accretion) of investment premiums and discounts | 655 | 900 | 1,316 |
Net loss on sale of investments | 363 | ||
Impairment of goodwill and intangible assets | 18,419 | ||
Amortization of intangible assets | 936 | 876 | 543 |
Bad debt expense | 3,017 | ||
Equity-based compensation | 3,000 | 2,494 | 3,820 |
Deferred income taxes | -728 | 2,229 | -10,099 |
Deferred income taxes valuation allowance | 9,394 | 23,437 | |
Loss (gain) on divestitures | 208 | -2,207 | |
Change in the fair value of acquisition-related contingent consideration | -250 | -3,727 | -219 |
Loss (gain) on disposal of equipment | 41 | -153 | 190 |
Changes in assets and liabilities: | |||
Accounts receivable | 2,950 | 4,638 | -3,531 |
Inventories | 3,550 | 1,560 | -8,738 |
Prepaid expenses and other assets | -166 | 1,211 | 6,089 |
Accounts payable | 629 | -439 | -378 |
Accrued payroll and other accrued liabilities | 2,071 | -8,259 | 2,492 |
Customer advances | -1,192 | 1,550 | -2,847 |
Total adjustments | 24,659 | 6,730 | 35,603 |
Net cash and cash equivalents used in operating activities | -2,786 | -8,966 | -19,716 |
Investing activities | |||
Purchase of investments | -35,703 | -37,055 | -47,199 |
Proceeds from sales and maturities of investments | 51,225 | 42,729 | 69,360 |
Proceeds from sale of equipment | 13 | 153 | |
Increase in restricted cash | -1,780 | ||
Purchase of equipment | -3,705 | -1,772 | -3,280 |
Net cash and cash equivalents provided by investing activities | 10,050 | 4,555 | 21,881 |
Financing activities | |||
Proceeds from issuance of common stock | 2,559 | 1,909 | 1,869 |
Common stock repurchases | -8,392 | -1,598 | |
Payment of acquisition-related contingent consideration | -40 | -3,345 | |
Net cash and cash equivalents provided by (used in) financing activities | -5,833 | 271 | -1,476 |
Effect of exchange rate changes on cash | -70 | 12 | |
Net increase (decrease) in cash and cash equivalents | 1,361 | -4,140 | 701 |
Cash and cash equivalents at beginning of period | 20,121 | 24,261 | 23,560 |
Cash and cash equivalents at end of period | 21,482 | 20,121 | 24,261 |
Cash paid (received) for: | |||
Income taxes | 378 | 108 | 24 |
Income tax refund | -912 | -4,608 | |
Non-cash investing activity | |||
Finished goods inventory transferred to property, plant and equipment | 1,551 | ||
DeltaNu | |||
Investing activities | |||
Proceeds from sale of assets | 500 | ||
Mainframe Technology | |||
Investing activities | |||
Proceeds from sale of assets | $3,000 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Jan. 03, 2015 | |||||||||||||
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies | ||||||||||||
Principles of Consolidation and Basis of Presentation | |||||||||||||
The consolidated financial statements include the accounts of Intevac, Inc. and its subsidiaries (Intevac or the Company) after elimination of inter-company balances and transactions. | |||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. | |||||||||||||
Change in Fiscal Year End Date | |||||||||||||
On February 19, 2014, the Board of Directors of the Company approved the Company’s change to a 52-53 week fiscal year ending on the Saturday nearest to December 31 of each year in order to improve the alignment of financial and business processes and to streamline financial reporting. Each fiscal quarter consists of 13 weeks, with an occasional fourth quarter extending to 14 weeks, if necessary, for the fiscal year to end on the Saturday nearest to December 31. The Company’s fiscal 2014 year ended on January 3, 2015. | |||||||||||||
Cash, Cash Equivalents and Investments | |||||||||||||
Intevac considers all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents. Available-for-sale securities, comprised of commercial paper, obligations of the U.S. government and its agencies, corporate debt securities, municipal bonds, and VRDNs, are carried at fair value, with unrealized gains and losses recorded within other comprehensive income (loss) as a separate component of stockholders’ equity. Realized gains and losses and declines in value judged to be other than temporary, if any, on available-for-sale securities are included in earnings. Purchases and sales of investment securities are recognized on a trade date basis. The cost of investment securities sold is determined by the specific identification method. | |||||||||||||
Restricted Cash | |||||||||||||
Restricted cash of $1.0 million as of January 3, 2015 secures a standby letter of credit obligation associated with a lease obligation and the restriction on the cash will be removed when the letter of credit expires. In addition Intevac pledged $780,000 as collateral for a banker’s guarantee on an advance payment made by a customer. | |||||||||||||
Derivative Instruments and Hedging Arrangements | |||||||||||||
Foreign Exchange Exposure Management—Intevac enters into forward foreign currency contracts that economically hedge the gains and losses generated by the re-measurement of certain recorded assets and liabilities in a non-functional currency and to offset certain operational exposures from the impact of changes in foreign currency exchange rates. Such exposures result from the portion of the Company’s operations, assets and liabilities that are denominated in currencies other than the U.S. dollar, primarily the Singapore dollar. These foreign currency exchange contracts are entered into to support transactions made in the normal course of business, and accordingly, are not speculative in nature. The contracts are for periods consistent with the terms of the underlying transactions, generally one year or less. Changes in the fair value of these undesignated hedges are recognized in other income (expense), net immediately as an offset to the changes in the fair value of the asset or liability being hedged. | |||||||||||||
Fair Value Measurement—Definition and Hierarchy | |||||||||||||
Intevac reports certain financial assets and liabilities at fair value. Intevac defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. | |||||||||||||
Fair value measurements are classified and disclosed in one of the following three categories: | |||||||||||||
Level 1—Valuations based on quoted prices in active markets for identical assets or liabilities. | |||||||||||||
Level 2—Valuations based on other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||||||||||||
Level 3—Valuations based on inputs that are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. | |||||||||||||
Business Combinations | |||||||||||||
Intevac accounts for business combinations using the acquisition method of accounting. Transaction costs are expensed as incurred. IPR&D costs are capitalized as an intangible asset. Contingent consideration is recorded as a liability at the measurement date with subsequent re-measurements recorded as an operating expense. Costs for business restructuring and exit activities related to the acquired company are included in the post-combination financial results. | |||||||||||||
Trade Accounts and Notes Receivables and Doubtful Accounts | |||||||||||||
Intevac evaluates the collectibility of trade accounts receivables and notes receivable on an ongoing basis and provides reserves against potential losses when appropriate. Management analyzes historical bad debts, customer concentrations, customer creditworthiness, changes in customer payment tendencies and current economic trends when evaluating the adequacy of the allowance for doubtful accounts. Customer accounts are written off against the allowance when the amount is deemed uncollectible. Also, accounts determined to be uncollectible are put in nonaccrual status whereby interest is not accrued on those accounts. | |||||||||||||
Inventories | |||||||||||||
Inventories are generally stated at the lower of cost or market, with cost determined on an average cost basis. | |||||||||||||
Property, Plant and Equipment | |||||||||||||
Equipment and leasehold improvements are stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets as follows: computers and software, 3 years; machinery and equipment, 5 years; furniture, 7 years; vehicles, 4 years; and leasehold improvements, remaining lease term. | |||||||||||||
Goodwill and Purchased Intangible Assets | |||||||||||||
The purchase price of an acquired business is allocated, as applicable, between IPR&D, other identifiable intangible assets, net tangible assets and goodwill. IPR&D is defined as the value assigned to those projects for which the related products have no alternative future use. Determining the portion of the purchase price allocated to IPR&D and other intangible assets requires the Company to make significant estimates. The amount of the purchase price allocated to IPR&D and other intangible assets is determined by estimating the future cash flows of each project or technology and discounting the net cash flows back to their present values. The discount rate used is determined at the time of the acquisition in accordance with accepted valuation methods. For IPR&D, these valuation methodologies include consideration of the risk of the project not achieving commercial feasibility. The IPR&D will be subject to amortization upon commercialization. If the technology is abandoned, the IPR&D will be written-off. | |||||||||||||
Contingent consideration is recorded at the acquisition date at the estimated fair value of the contingent payments. The acquisition date fair value is measured based on the consideration expected to be transferred (probability-weighted), discounted back to present value. The discount rate used is determined at the time of the acquisition in accordance with accepted valuation methods. The fair value of the contingent consideration is remeasured at the estimated fair value at each reporting period with the change in fair value recognized as income or expense in the consolidated statements of operations. | |||||||||||||
Goodwill represents the excess of the aggregate purchase price over the fair value of net assets, including IPR&D, of acquired businesses. Intevac’s methodology for allocating the purchase price relating to purchase acquisitions is determined through established and generally accepted valuation techniques. Goodwill is measured as the excess of the cost of the acquisition over the sum of the amounts assigned to tangible and identifiable intangible assets acquired less liabilities assumed. Intevac assigns assets acquired (including goodwill) and liabilities assumed to a reporting unit as of the date of acquisition. | |||||||||||||
Purchased intangible assets other than goodwill are amortized over their useful lives unless these lives are determined to be indefinite. Purchased intangible assets are carried at cost, less accumulated amortization. Amortization is computed over the estimated useful lives of the respective assets, generally one to thirteen years using the straight line method. | |||||||||||||
Goodwill and purchased intangible assets with indefinite useful lives were not amortized, but are reviewed for impairment annually during the fourth quarter of each fiscal year and whenever events or changes in circumstances indicated that the carrying value of an asset may not have been recoverable. For goodwill, Intevac performed a two-step impairment test. In the first step, Intevac compared the fair value of each reporting unit to its carrying value. Intevac’s reporting units are consistent with the reportable segments identified in Note 14, based on the manner in which Intevac operates its business and the nature of those operations. Depending on the facts and circumstances Intevac determined the fair value of each of its reporting units based upon the most appropriate valuation technique using the income approach, the market approach or a combination thereof. The income and market approaches were selected as management believed these approaches generally provided the most reliable indications of fair value when the value of the operations was more dependent on the ability to generate earnings than on the value of the assets used in the production process. Under the income approach Intevac calculated the fair value of the reporting units based on the present value of estimated future cash flows. Under the market approach Intevac estimated the fair value based on market multiples of revenue or earnings for comparable companies. Each valuation technique has advantages and drawbacks, which must be considered when applying those techniques. The income approach closely correlates to management’s expectations of future results but requires significant assumptions which can be highly sensitive. The market approach is relatively straightforward to measure, but it may be difficult to find directly comparable companies in the marketplace. If the fair value of the reporting unit exceeded the carrying value of the net assets assigned to that unit, goodwill was not impaired and no further testing was performed. If the carrying value of the net assets assigned to the reporting unit exceeded the fair value of the reporting unit, then Intevac would perform the second step of the impairment test in order to determine the implied fair value of the reporting unit’s goodwill. If the carrying value of a reporting unit’s goodwill exceeded its implied fair value, Intevac would record an impairment loss equal to the difference. In 2012, as a result of its impairment analysis, Intevac wrote off all of the goodwill in both its Equipment and Photonics reporting units. | |||||||||||||
Impairment of Long-Lived Assets | |||||||||||||
Long-lived assets and certain identifiable finite-lived intangible assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability of long-lived assets is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. Measurement of an impairment loss for long-lived assets and certain identifiable intangible assets that management expects to hold and use is based on the fair value of the asset. When an impairment loss is recognized, the carrying amount of the asset is reduced to its estimated fair value. No impairment charges were recognized in fiscal 2014, 2013 and 2012. | |||||||||||||
Income Taxes | |||||||||||||
Deferred tax assets and liabilities are recognized using enacted tax rates for the effect of temporary differences between book and tax bases of recorded assets and liabilities. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that a portion of the deferred tax asset will not be realized. | |||||||||||||
On a quarterly basis, Intevac provides for income taxes based upon an annual effective income tax rate. The effective tax rate is highly dependent upon the level of Intevac’s projected earnings, the geographic composition of worldwide earnings, tax regulations governing each region, net operating loss carryforwards, availability of tax credits and the effectiveness of Intevac’s tax planning strategies. Intevac carefully monitors the changes in many factors and adjust its effective income tax rate on a timely basis. If actual results differ from the estimates, this could have a material effect on Intevac’s business, financial condition and results of operations. | |||||||||||||
The calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of complex tax laws. Resolution of these uncertainties in a manner inconsistent with Intevac’s expectations could have a material effect on Intevac’s business, financial condition and results of operations. | |||||||||||||
Intevac recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes. | |||||||||||||
Sales and Value Added Taxes | |||||||||||||
Taxes collected from customers and remitted to governmental authorities are presented on a net basis in the accompanying consolidated statements of operations. | |||||||||||||
Revenue Recognition | |||||||||||||
Intevac recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred and title and risk of loss have passed to Intevac’s customer or services have been rendered, the price is fixed or determinable, and collectibility is reasonably assured. Intevac’s shipping terms are customarily FOB shipping point or equivalent terms. Intevac’s revenue recognition policy generally results in revenue recognition at the following points: (1) for all transactions where legal title passes to the customer upon shipment, Intevac recognizes revenue upon shipment for all products that have been demonstrated to meet product specifications prior to shipment; the portion of revenue associated with certain installation-related tasks is deferred, and that revenue is recognized upon completion of the installation-related tasks; (2) for products that have not been demonstrated to meet product specifications prior to shipment, revenue is recognized at customer acceptance; and (3) for arrangements containing multiple elements, the revenue relating to the undelivered elements is deferred until delivery of the deferred elements. When a sales arrangement contains multiple elements, Intevac allocates revenue to each element based on a selling price hierarchy. The selling price for a deliverable is based on its VSOE if available, TPE if VSOE is not available, or best ESP if neither VSOE nor TPE is available. Intevac generally utilizes the ESP due to the nature of its products. In certain cases, technology upgrade sales are accounted for as multiple-element arrangements, usually split between delivery of the parts and installation on the customer’s systems. In these cases, Intevac recognizes revenue for the relative sales price of the parts upon shipment and transfer of title, and recognizes revenue for the relative sales price of installation services when those services are completed. Revenue related to sales of spare parts is generally recognized upon shipment. Revenue related to services is generally recognized upon completion of the services. In addition, Intevac uses the installment method to record revenue based on cash receipts in situations where the account receivable is collected over an extended period of time and in management’s judgment the degree of collectibility is uncertain. | |||||||||||||
Intevac performs research and development work under various government-sponsored research contracts. Revenue on cost-plus-fee contracts is recognized to the extent of costs actually incurred plus a proportionate amount of the fee earned. Intevac considers fixed fees under cost-plus-fee contracts to be earned in proportion to the allowable costs actually incurred in performance of the contract. Revenue on fixed-price contracts is recognized on a milestone method or percentage-of-completion method of contract accounting. For contracts structured as milestone agreements, revenue is recognized when a specified milestone is achieved, provided that (1) the milestone event is substantive in nature and there is substantial uncertainty about the achievement of the milestone at the inception of the agreement, (2) the milestone payment is non-refundable, and (3) there is no continuing performance obligations associated with the milestone payment. Any milestone payments received prior to satisfying these revenue recognition criteria are deferred. Intevac generally determines the percentage completed based on the percentage of costs incurred to date in relation to total estimated costs expected through completion of the contract. When estimates of total costs to be incurred on a contract exceed estimates of total revenue to be earned, a provision for the entire loss on the contract is recorded in the period the loss is determined. | |||||||||||||
Advertising Costs | |||||||||||||
Advertising costs are expensed as incurred. Advertising costs were not material for all periods presented. | |||||||||||||
Foreign Currency Translation | |||||||||||||
The functional currency of Intevac’s foreign subsidiaries in Singapore and Hong Kong and the Taiwan branch is the U.S. dollar. The functional currency of Intevac’s foreign subsidiaries in China, Malaysia and Korea is the local currency of the country in which the respective subsidiary operates. Assets and liabilities recorded in foreign currencies are translated at year-end exchange rates; revenues and expenses are translated at average exchange rates during the year. The effect of foreign currency translation adjustments are included in stockholders’ equity as a component of accumulated other comprehensive income in the accompanying consolidated balance sheets. The effects of foreign currency transactions are included in other income in the determination of net income. Net income (losses) from foreign currency transactions were $11,000, $(36,000), and $(78,000) in 2014, 2013 and 2012, respectively. | |||||||||||||
Comprehensive Income | |||||||||||||
The changes in accumulated other comprehensive income by component, were as follows for the years ended January 3, 2015 and December 31, 2013: | |||||||||||||
Foreign | Unrealized | Total | |||||||||||
currency | holding | ||||||||||||
gains | |||||||||||||
(losses) on | |||||||||||||
available- | |||||||||||||
for-sale | |||||||||||||
investments | |||||||||||||
(in thousands) | |||||||||||||
Balance at December 31, 2012 | $ | 694 | $ | 75 | $ | 769 | |||||||
Other comprehensive loss before reclassification | (3 | ) | (41 | ) | (44 | ) | |||||||
Amounts reclassified from other comprehensive income | — | — | — | ||||||||||
Net current-period other comprehensive loss | (3 | ) | (41 | ) | (44 | ) | |||||||
Balance at December 31, 2013 | $ | 691 | $ | 34 | $ | 725 | |||||||
Other comprehensive loss before reclassification | (71 | ) | (35 | ) | (106 | ) | |||||||
Amounts reclassified from other comprehensive income | — | — | — | ||||||||||
Net current-period other comprehensive loss | (71 | ) | (35 | ) | (106 | ) | |||||||
Balance at January 3, 2015 | $ | 620 | $ | (1 | ) | $ | 619 | ||||||
Employee Stock Plans | |||||||||||||
Intevac has equity-based compensation plans that provide for the grant to employees of equity-based awards, including incentive or non-statutory stock options, restricted stock, stock appreciation rights, restricted stock units (“RSUs” also referred to as performance units) and performance shares. In addition, these plans provide for the grant of non-statutory stock options and RSUs to non-employee directors and consultants. Intevac also has an employee stock purchase plan, which provides Intevac’s employees with the opportunity to purchase Intevac common stock at a discount through payroll deductions. See Note 2 for a complete description of these plans and their accounting treatment. | |||||||||||||
Recent Accounting Pronouncements | |||||||||||||
In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15, “Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. This ASU is intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. The amendments in this ASU will be effective for Intevac in the fourth quarter of fiscal 2016, with early adoption permitted. We are currently evaluating the impact of the adoption of this accounting standard update on our consolidated financial statements. | |||||||||||||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) which provides guidance for revenue recognition. This ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets. This ASU will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. This ASU also supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition-Construction-Type and Production-Type Contracts. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under today’s guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The standard will be effective for Intevac in the first quarter of fiscal 2017 using one of two retrospective application methods. Early adoption is not permitted. We are currently evaluating the impact of the adoption of this accounting standard update on our consolidated financial statements. | |||||||||||||
In April 2014, the FASB issued authoritative guidance that raises the threshold for a disposal transaction to qualify as a discontinued operation and requires additional disclosures about discontinued operations and disposals of individually significant components that do not qualify as discontinued operations. The authoritative guidance becomes effective prospectively for Intevac in the first quarter of fiscal 2015. Early adoption is permitted, but only for disposals that have not been reported in financial statements previously issued. |
EquityBased_Compensation
Equity-Based Compensation | 12 Months Ended | ||||||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||||||
Equity-Based Compensation | 2. Equity-Based Compensation | ||||||||||||||||||||
Intevac accounts for share-based awards in accordance with the provisions of the accounting guidance which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees, consultants and directors based upon the grant-date fair value of those awards. The estimated fair value of Intevac’s equity-based awards, less expected forfeitures, is amortized over the awards’ service periods using the graded vesting attribution method. | |||||||||||||||||||||
Descriptions of Plans | |||||||||||||||||||||
Equity Incentive Plans | |||||||||||||||||||||
At January 3, 2015, Intevac had equity-based awards outstanding under the 2012 Equity Incentive Plan and the 2004 Equity Incentive Plan (the “Plans”) and the 2003 Employee Stock Purchase Plan (the “ESPP”). Intevac’s stockholders approved all of these plans. | |||||||||||||||||||||
The Plans are a broad-based, long-term retention program intended to attract and retain qualified management and employees, and align stockholder and employee interests. The Plans permit the grant of incentive or non-statutory stock options, restricted stock, stock appreciation rights, RSUs and performance shares. Option price, vesting period, and other terms are determined by the administrator of the Plans, but the option price shall generally not be less than 100% of the fair market value per share on the date of grant. As of January 3, 2015, 4.9 million shares of common stock were authorized for future issuance under the Plans. The 2012 Plan expires no later than May 8, 2022. | |||||||||||||||||||||
2003 Employee Stock Purchase Plan | |||||||||||||||||||||
In 2003, Intevac’s stockholders approved adoption of the ESPP, which serves as the successor to the Employee Stock Purchase Plan originally adopted in 1995. Upon adoption of the ESPP, all shares available for issuance under the prior plan were transferred to the ESPP. The ESPP provides that eligible employees may purchase Intevac common stock through payroll deductions at a price equal to 85% of the lower of the fair market value at the beginning of the applicable offering period or at the end of each applicable purchase interval. Offering periods are generally two years in length, and consist of a series of six-month purchase intervals. Eligible employees may join the ESPP at the beginning of any six-month purchase interval. Under the terms of the ESPP, employees can choose to have up to 15% of their base earnings withheld to purchase Intevac common stock. As of January 3, 2015, 400,000 shares remained available for issuance under the ESPP. | |||||||||||||||||||||
The effect of recording equity-based compensation for fiscal 2014, 2013 and 2012 was as follows (in thousands): | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Equity-based compensation by type of award: | |||||||||||||||||||||
Stock options | $ | 1,094 | $ | 984 | $ | 2,302 | |||||||||||||||
RSUs | 1,464 | 419 | 201 | ||||||||||||||||||
Employee stock purchase plan | 442 | 1,091 | 1,317 | ||||||||||||||||||
Total equity-based compensation | $ | 3,000 | $ | 2,494 | $ | 3,820 | |||||||||||||||
Tax effect on equity-based compensation | $ | — | $ | 27 | $ | 870 | |||||||||||||||
Stock Options | |||||||||||||||||||||
The exercise price of each stock option equals the market price of Intevac’s stock on the date of grant. Most options are scheduled to vest over four years and expire no later than ten years after the grant date. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model. This model was developed for use in estimating the value of publicly traded options that have no vesting restrictions and are fully transferable. Intevac’s employee stock options have characteristics significantly different from those of publicly traded options. The weighted average assumptions used in the model are outlined in the following table: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Stock Options: | |||||||||||||||||||||
Weighted-average fair value of grants per share | $ | 3.15 | $ | 2.49 | $ | 3.82 | |||||||||||||||
Expected volatility | 52.12 | % | 56.28 | % | 63.56 | % | |||||||||||||||
Risk free interest rate | 1.39 | % | 1.09 | % | 0.73 | % | |||||||||||||||
Expected term of options (in years) | 4.38 | 4.2 | 4.6 | ||||||||||||||||||
Dividend yield | None | None | None | ||||||||||||||||||
The computation of the expected volatility assumption used in the Black-Scholes calculations for new grants is based on historical volatility of Intevac’s stock price. The risk-free interest rate is based on the yield available on U.S. Treasury Strips with an equivalent remaining term. The expected life of employee stock options represents the weighted-average period that the stock options are expected to remain outstanding and was determined based on historical experience of similar awards, giving consideration to the contractual terms of the stock-based awards and vesting schedules. The dividend yield assumption is based on Intevac’s history of not paying dividends and the assumption of not paying dividends in the future. | |||||||||||||||||||||
A summary of the stock option activity is as follows: | |||||||||||||||||||||
Shares | Weighted | Weighted | Aggregate | ||||||||||||||||||
Average | Average | Intrinsic | |||||||||||||||||||
Exercise | Remaining | Value | |||||||||||||||||||
Price | Contractual | ||||||||||||||||||||
Term (years) | |||||||||||||||||||||
Options outstanding at December 31, 2013 | 2,637,969 | $ | 8.53 | 4.52 | $ | 2,547,939 | |||||||||||||||
Options granted | 534,985 | $ | 7.35 | ||||||||||||||||||
Options cancelled and forfeited | (397,605 | ) | $ | 10.44 | |||||||||||||||||
Options exercised | (190,414 | ) | $ | 4.98 | |||||||||||||||||
Options outstanding at January 3, 2015 | 2,584,935 | $ | 8.26 | 4.15 | $ | 1,895,817 | |||||||||||||||
Vested and expected to vest at January 3, 2015 | 2,416,921 | $ | 8.37 | 4.05 | $ | 1,749,778 | |||||||||||||||
Options exercisable at January 3, 2015 | 1,470,523 | $ | 9.41 | 3.18 | $ | 945,484 | |||||||||||||||
The total intrinsic value of options exercised during fiscal years 2014, 2013 and 2012 was $496,000, $49,000 and $194,000, respectively. At January 3, 2015, Intevac had $1.3 million of total unrecognized compensation expense, net of estimated forfeitures, related to stock option plans that will be recognized over the weighted average period of 1.36 years. | |||||||||||||||||||||
The options outstanding and currently exercisable at January 3, 2015 were in the following exercise price ranges: | |||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||
Range of Exercise Prices | Number of | Weighted | Weighted | Number | Weighted | ||||||||||||||||
Shares | Average | Average | Vested and | Average | |||||||||||||||||
Outstanding | Remaining | Exercise Price | Exercisable | Exercise Price | |||||||||||||||||
Contractual | |||||||||||||||||||||
Term (years) | |||||||||||||||||||||
$3.91 - $ 6.55 | 896,836 | 4.65 | $ | 5.4 | 389,359 | $ | 5.03 | ||||||||||||||
$6.63 - $8.24 | 876,474 | 4.71 | $ | 7.42 | 359,924 | $ | 7.6 | ||||||||||||||
$8.43 - $22.40 | 811,625 | 3 | $ | 12.32 | 721,240 | $ | 12.68 | ||||||||||||||
$3.91 - $22.40 | 2,584,935 | 4.15 | $ | 8.26 | 1,470,523 | $ | 9.41 | ||||||||||||||
Stock Option Exchange Program | |||||||||||||||||||||
During our Annual Stockholder’s Meeting held on May 9, 2013, our stockholders approved a one-time Employee Stock Option Exchange Program (the “Exchange Program”) pursuant to which eligible employees were provided an opportunity to exchange, on a grant-by-grant basis, eligible outstanding stock options for a lesser number of new options, to be granted under our 2012 Equity Incentive Plan. Options eligible for the Exchange Program are those that were granted prior to the 12-month period preceding the start of the Exchange Program offering period, and have exercise prices per share that are greater than $8.49, 50% above our closing per share stock price measured as of July 5, 2013 which is shortly before the start of the Exchange Program. The Exchange Program offering period commenced on July 6, 2013 and closed on August 6, 2013, at which time a total of 87 eligible option holder participants exchanged 766,000 outstanding stock options for 336,000 stock options. | |||||||||||||||||||||
The Exchange Program was launched to restore the intended retention and incentive value of employee equity awards, reduce the potential dilutive effect of our equity incentive program, and reduce pressure to grant additional equity awards to employees in the short term. Participation in the Exchange Program was made available to all employees in the United States and Singapore except for the Named Executive Officers. Non-employee members of our board of directors were also not eligible to participate. The exchange of options under the Exchange Program resulted in a total incremental charge to compensation expense of $126,000. This incremental charge is being recognized over the vesting periods of the new options. These vesting periods range from one to three years beginning on the first anniversary of the grant. | |||||||||||||||||||||
RSUs | |||||||||||||||||||||
A summary of the RSU activity is as follows: | |||||||||||||||||||||
Shares | Weighted | Weighted | Aggregate | ||||||||||||||||||
Average | Average | Intrinsic | |||||||||||||||||||
Grant | Remaining | Value | |||||||||||||||||||
Date | Contractual | ||||||||||||||||||||
Fair Value | Term (years) | ||||||||||||||||||||
Non-vested RSUs at December 31, 2013 | 237,859 | $ | 5.34 | 1.8 | $ | 1,767,293 | |||||||||||||||
Granted | 277,498 | $ | 7.3 | ||||||||||||||||||
Vested | (71,856 | ) | $ | 5.39 | |||||||||||||||||
Cancelled | (93,072 | ) | $ | 6.31 | |||||||||||||||||
Non-vested RSUs at January 3, 2015 | 350,429 | $ | 6.62 | 1.56 | $ | 2,586,166 | |||||||||||||||
RSUs are converted into shares of Intevac common stock upon vesting on a one-for-one basis. RSUs typically are scheduled to vest over four years. Vesting of RSUs is subject to the grantee’s continued service with Intevac. The compensation expense related to these awards is determined using the fair market value of Intevac common stock on the date of the grant, and the compensation expense is recognized over the vesting period. At January 3, 2015, Intevac had $1.1 million of total unrecognized compensation expense, net of estimated forfeitures, related to RSUs that will be recognized over the weighted average period of 1.56 years. | |||||||||||||||||||||
The annual bonus for participants in the Company’s annual incentive plan for fiscal 2014 will be settled with RSUs with one year vesting issued in 2015. The Company accrued for the payment of bonuses at the expected company-wide payout percentage amount at January 3, 2015, which amounts were less than the target bonus amounts for each participant. The bonus accrual is classified as a liability until the number of shares is determined on the date the awards are granted, at which time the Company classifies the awards into equity. The Company recorded equity-based compensation expense related to the annual incentive plan of $554,000 in fiscal 2014. At January 3, 2015, Intevac had $623,000 of total unrecognized compensation expense, net of estimated forfeitures, related to the annual incentive plan that will be recognized over the weighted average period of 0.69 years. | |||||||||||||||||||||
Performance-based RSUs (“performance-based awards”) granted to certain executive officers are also subject to the achievement of specified performance goals. These performance-based awards become eligible to vest only if performance goals are achieved and then actually will vest only if the grantee remains employed by Intevac through each applicable vesting date. The fair value of these performance-based awards is estimated on the date of grant and assumes that the specified performance goals will be achieved. If the goals are achieved, these awards vest over a specified remaining service period, provided that the grantee remains employed by Intevac through each scheduled vesting date. If the performance goals are not met, no future compensation expense is recognized and any previously recognized compensation expense is reversed. The expected cost of each award is reflected over the service period and is reduced for estimated forfeitures. For performance-based awards granted during fiscal 2013, the performance goals require the achievement of targeted revenues and adjusted annual operating profit levels measured at the end of two and three-year periods. | |||||||||||||||||||||
ESPP | |||||||||||||||||||||
The fair value of the employee stock purchase right is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Stock Purchase Rights: | |||||||||||||||||||||
Weighted-average fair value of grants per share | $ | 2.08 | $ | 1.63 | $ | 3.01 | |||||||||||||||
Expected volatility | 44 | % | 51.54 | % | 62.36 | % | |||||||||||||||
Risk free interest rate | 0.11 | % | 0.26 | % | 0.28 | % | |||||||||||||||
Expected term of purchase rights (in years) | 0.69 | 1.77 | 1.68 | ||||||||||||||||||
Dividend yield | None | None | None | ||||||||||||||||||
The expected life of purchase rights is the period of time remaining in the current offering period. | |||||||||||||||||||||
The ESPP activity during fiscal 2014, 2013 and 2012 is as follows: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||||||
Shares purchased | 444 | 457 | 301 | ||||||||||||||||||
Weighted average purchase price per share | $ | 3.63 | $ | 3.58 | $ | 5.73 | |||||||||||||||
Aggregate intrinsic value of purchase rights exercised | $ | 1,444 | $ | 745 | $ | 304 | |||||||||||||||
As of January 3, 2015, Intevac had $19,000 of total unrecognized compensation expense, net of estimated forfeitures related to purchase rights that will be recognized over the weighted average period of 0.25 years. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||
Jan. 03, 2015 | |||||||||||||
Earnings Per Share | 3. Earnings Per Share | ||||||||||||
Intevac calculates basic earnings per share (“EPS”) using net income (loss) and the weighted-average number of shares outstanding during the reporting period. Diluted EPS includes the effect from potential issuance of common stock pursuant to the exercise of employee stock options and vesting of RSUs. | |||||||||||||
The following table sets forth the computation of basic and diluted loss per share: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands, except per share amounts) | |||||||||||||
Net loss | $ | (27,445 | ) | $ | (15,696 | ) | $ | (55,319 | ) | ||||
Weighted-average shares – basic | 23,671 | 23,832 | 23,336 | ||||||||||
Effect of dilutive potential common shares | — | — | — | ||||||||||
Weighted-average shares – diluted | 23,671 | 23,832 | 23,336 | ||||||||||
Net loss per share – basic and diluted | $ | (1.16 | ) | $ | (0.66 | ) | $ | (2.37 | ) | ||||
Antidilutive shares based on employee awards excluded | 2,113 | 2,579 | 3,008 | ||||||||||
Potentially dilutive common shares consist of shares issuable upon exercise of employee stock options and vesting of RSUs and are excluded from the calculation of diluted EPS when their effect would be anti-dilutive. |
Concentrations
Concentrations | 12 Months Ended | ||||||||||||
Jan. 03, 2015 | |||||||||||||
Concentrations | 4. Concentrations | ||||||||||||
Credit Risk and Significant Customers | |||||||||||||
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist of cash equivalents, short- and long-term investments, restricted cash, and accounts receivable. Intevac generally invests its excess cash in money market funds, commercial paper, obligations of the U.S. government and its agencies, corporate debt securities, municipal bonds and VRDNs. The Company has adopted an investment policy and established guidelines relating to credit quality, diversification and maturities of its investments in order to preserve principal and maintain liquidity. All investment securities in Intevac’s portfolio have an investment grade credit rating. | |||||||||||||
Intevac’s accounts receivable tend to be concentrated in a limited number of customers. The following customers accounted for at least 10 percent of Intevac’s accounts receivable at January 3, 2015 and December 31, 2013. | |||||||||||||
2014 | 2013 | ||||||||||||
Seagate Technology | 46 | % | 40 | % | |||||||||
U.S. Government | 13 | % | * | ||||||||||
Northrop Grumman | * | 11 | % | ||||||||||
* | Less than 10% | ||||||||||||
Intevac’s largest customers tend to change from period to period. Historically, a significant portion of Intevac’s revenues in any particular period have been attributable to sales to a limited number of customers. Intevac performs credit evaluations of its customers’ financial condition and generally requires deposits on system orders but does not generally require collateral or other security to support customer receivables. | |||||||||||||
The following customers accounted for at least 10 percent of Intevac’s consolidated net revenues in fiscal 2014, 2013, and 2012. | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
U.S. Government | 32 | % | * | 10 | % | ||||||||
HGST | 17 | % | * | * | |||||||||
Seagate Technology | 15 | % | 37 | % | 51 | % | |||||||
Northrop Grumman | * | 11 | % | * | |||||||||
* | Less than 10% | ||||||||||||
Products | |||||||||||||
Disk manufacturing products contributed a significant portion of Intevac’s revenues in fiscal 2014, 2013, and 2012. Intevac expects that the ability to maintain or expand its current levels of revenues in the future will depend upon continuing market demand for its products; its success in enhancing its existing systems and developing and manufacturing competitive disk manufacturing equipment, such as the 200 Lean; Intevac’s success in developing both military and commercial products based on its low-light technology; and its success in utilizing Intevac’s expertise in complex manufacturing equipment to develop and sell new equipment products for PV and display cover panel manufacturing. |
Balance_Sheet_Details
Balance Sheet Details | 12 Months Ended | ||||||||||||
Jan. 03, 2015 | |||||||||||||
Balance Sheet Details | 5. Balance Sheet Details | ||||||||||||
Balance sheet details were as follows as of January 3, 2015 and December 31, 2013: | |||||||||||||
Trade and Other Accounts Receivable, Net | |||||||||||||
Receivables consisted of the following components: | |||||||||||||
January 3, | December 31, | ||||||||||||
2015 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Trade receivables and other | $ | 10,548 | $ | 12,043 | |||||||||
Unbilled costs and accrued profits | 1,539 | 2,994 | |||||||||||
Less: allowance for doubtful accounts | — | — | |||||||||||
$ | 12,087 | $ | 15,037 | ||||||||||
Allowance for Doubtful Accounts | |||||||||||||
The following table represents a reconciliation of the allowance for doubtful accounts for fiscal 2014, 2013 and 2012: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Opening balance | $ | — | $ | — | $ | 41 | |||||||
Bad debt expense | — | — | 3,017 | ||||||||||
Write-offs | — | — | (3,058 | ) | |||||||||
Closing balance | $ | — | $ | — | $ | — | |||||||
Inventories | |||||||||||||
Inventories are stated at the lower of average cost or market and consist of the following: | |||||||||||||
January 3, | December 31, | ||||||||||||
2015 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Raw materials | $ | 10,684 | $ | 13,005 | |||||||||
Work-in-progress | 2,299 | 8,196 | |||||||||||
Finished goods | 6,229 | 1,561 | |||||||||||
$ | 19,212 | $ | 22,762 | ||||||||||
Finished goods inventory consists primarily of completed systems at customer sites that are undergoing installation and acceptance testing and evaluation inventory. | |||||||||||||
Property, Plant and Equipment | |||||||||||||
January 3, | December 31, | ||||||||||||
2015 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Leasehold improvements | $ | 15,245 | $ | 15,090 | |||||||||
Machinery and equipment | 43,141 | 39,938 | |||||||||||
58,386 | 55,028 | ||||||||||||
Less accumulated depreciation and amortization | 45,560 | 42,083 | |||||||||||
Total property, plant and equipment, net | $ | 12,826 | $ | 12,945 | |||||||||
Customer Advances | |||||||||||||
Customer advances generally represent nonrefundable deposits invoiced by the Company in connection with receiving customer purchase orders and other events preceding acceptance of systems. Customer advances related to products that have not been shipped to customers and included in accounts receivable were $2.4 million at January 3, 2015 and $1.1 million at December 31, 2013. | |||||||||||||
Accounts Payable | |||||||||||||
Included in accounts payable is $254,000 and $325,000 of book overdraft at January 3, 2015 and December 31, 2013, respectively. | |||||||||||||
Other Accrued Liabilities | |||||||||||||
January 3, | December 31, | ||||||||||||
2015 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Deferred revenue | $ | 4,260 | $ | 496 | |||||||||
Payable for pending purchase of available-for-sale marketable securities | 2,059 | — | |||||||||||
Accrued product warranties | 1,022 | 1,546 | |||||||||||
Other taxes payable | 277 | 551 | |||||||||||
Acquisition-related contingent consideration | 59 | 164 | |||||||||||
Other | 595 | 506 | |||||||||||
Total other accrued liabilities | $ | 8,272 | $ | 3,263 | |||||||||
Other Long-Term Liabilities | |||||||||||||
January 3, | December 31, | ||||||||||||
2015 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Acquisition-related contingent consideration | $ | 1,075 | $ | 1,220 | |||||||||
Deferred rent | 861 | — | |||||||||||
Accrued product warranties | 164 | 101 | |||||||||||
Accrued income taxes | 100 | 394 | |||||||||||
Total other long-term liabilities | $ | 2,200 | $ | 1,715 | |||||||||
Goodwill_and_Purchased_Intangi
Goodwill and Purchased Intangible Assets, Net | 12 Months Ended | ||||||||||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||||||||||
Goodwill and Purchased Intangible Assets, Net | 6. Goodwill and Purchased Intangible Assets, Net | ||||||||||||||||||||||||
Information regarding acquisition-related intangible assets is as follows: | |||||||||||||||||||||||||
January 3, 2015 | December 31, 2013 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | ||||||||||||||||||||
Amount | Amount | Amount | Amount | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Customer relationships | $ | 3,119 | $ | 2,426 | $ | 693 | $ | 3,119 | $ | 2,206 | $ | 913 | |||||||||||||
Purchased technology | 5,148 | 1,875 | 3,273 | 5,148 | 1,159 | 3,989 | |||||||||||||||||||
Covenants not to compete | 40 | 40 | — | 40 | 40 | — | |||||||||||||||||||
Backlog | 80 | 80 | — | 80 | 80 | — | |||||||||||||||||||
Total amortizable intangible assets | $ | 8,387 | $ | 4,421 | $ | 3,966 | $ | 8,387 | $ | 3,485 | $ | 4,902 | |||||||||||||
Intangible assets by segment as of January 3, 2015 are as follows: Equipment; $3.5 million and Photonics; $429,000. | |||||||||||||||||||||||||
Total amortization expense of purchased intangibles for fiscal 2014, 2013 and 2012 was $936,000, $876,000, $543,000 respectively. | |||||||||||||||||||||||||
Estimated future amortization expense related to finite-lived purchased intangible assets as of January 3, 2015, is as follows. | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
2015 | $ | 853 | |||||||||||||||||||||||
2016 | 853 | ||||||||||||||||||||||||
2017 | 756 | ||||||||||||||||||||||||
2018 | 615 | ||||||||||||||||||||||||
2019 | 615 | ||||||||||||||||||||||||
Thereafter | 274 | ||||||||||||||||||||||||
$ | 3,966 | ||||||||||||||||||||||||
Goodwill and indefinite life intangible assets were tested for impairment on an annual basis or more frequently upon the occurrence of circumstances that indicated that goodwill and indefinite life intangible assets were impaired. | |||||||||||||||||||||||||
Intevac performed its annual goodwill impairment test in the fourth quarter of fiscal 2012, and, based on step one of the impairment analysis, Intevac determined that the fair values of both its Equipment and Photonics reporting units were less than their carrying value and potential impairment existed. Intevac completed the second step of the goodwill impairment analysis and determined that there would be no remaining implied value attributable to goodwill in either reporting unit and accordingly, Intevac wrote off all of the goodwill in both its Equipment and Photonics reporting units. In the second half of 2012, the Company experienced a significant decline in its stock price which resulted in the Company’s market capitalization falling significantly below the recorded value of its consolidated net assets. | |||||||||||||||||||||||||
Intevac’s indefinite-lived intangible asset consisted of IPR&D in the amount of $4.0 million in the Equipment segment. During the second quarter of fiscal 2013, the related development project was completed, the product achieved commercialization and Intevac began amortizing the intangible asset over its expected useful life of 7 years. Immediately prior to commencement of amortization Intevac tested the intangible asset for impairment and determined that it was not impaired. Intevac performed its annual impairment tests on its indefinite life intangible assets in the fourth quarter of fiscal 2012, and, based on the impairment analysis, Intevac determined that the IPR&D was not impaired. Intevac’s indefinite life tradename was impaired and recorded an immaterial impairment charge. This tradename was subsequently sold in March 2013 as part of the sale of the Raman spectroscopy instruments product line. |
Contingent_Consideration
Contingent Consideration | 12 Months Ended | ||||||||||||
Jan. 03, 2015 | |||||||||||||
Contingent Consideration | 7. Contingent Consideration | ||||||||||||
In connection with the acquisition of SIT, Intevac agreed to pay up to an aggregate of $7.0 million in cash to the selling shareholders if certain milestones were achieved over a specified period. Intevac has made payments to the selling shareholders for achievement of the first milestone in 2011, and for achievement of the second and third milestones in 2012. The fourth and final milestone was not achieved on the targeted date outlined in the acquisition agreement and will not be paid. There is no remaining contingent consideration obligation associated with the milestone agreement at January 3, 2015. | |||||||||||||
In connection with the acquisition of SIT, Intevac also agreed to pay to the selling shareholders in cash a revenue earnout on Intevac’s net revenue from commercial sales of certain products over a specified period up to an aggregate of $9.0 million. Intevac estimated the fair value of this contingent consideration on January 3, 2015 based on probability-based forecasted revenues reflecting Intevac’s own assumptions concerning future revenue from such products. As of January 3, 2015, payments made associated with the revenue earnout obligation have not been significant. | |||||||||||||
The fair value measurement of contingent consideration is based on significant inputs not observable in the market and thus represents a Level 3 measurement. The following table represents the quantitative range of the significant unobservable inputs used in the calculation of fair value of the contingent consideration liability as of January 3, 2015. Significant increases or decreases in any of these inputs even in isolation would result in a significantly lower (higher) fair value measurement. | |||||||||||||
Quantitative Information about Level 3 Fair Value Measurements at January 3, 2015 | |||||||||||||
Fair Value | Valuation Technique | Unobservable Input | Range (Weighted Average) | ||||||||||
(in thousands, except for percentages) | |||||||||||||
Revenue Earnout | $ | 1,134 | Discounted cash flow | Weighted average cost of capital | 15.60% | ||||||||
Probability weighting of | 20.0% - 55.0% (36.5%) | ||||||||||||
achieving revenue forecasts | |||||||||||||
Any change in fair value of the contingent consideration subsequent to the acquisition date is recognized in operating income within the consolidated statement of operations. The following table represents a reconciliation of the change in the fair value measurement of the contingent consideration liability for fiscal 2014, 2013 and 2012: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Beginning balance | $ | 1,384 | $ | 5,151 | $ | 8,715 | |||||||
Changes in fair value | (250 | ) | (3,727 | ) | (219 | ) | |||||||
Cash payments made | — | (40 | ) | (3,345 | ) | ||||||||
Ending balance | $ | 1,134 | $ | 1,384 | $ | 5,151 | |||||||
Divestitures
Divestitures | 12 Months Ended | ||||
Jan. 03, 2015 | |||||
Divestitures | 8. Divestitures | ||||
Sale of DeltaNu | |||||
On March 29, 2013, the Company sold certain assets, including existing tangible and intangible assets, which comprised its Raman spectroscopy instruments product line, also known as DeltaNu, for consideration not to exceed $1.5 million. Under the terms of the agreement, the acquirer also assumed certain liabilities related to the purchased assets. Payment terms included $500,000 which was paid on the closing date, with the remaining balance to be paid in the form of an earnout of 5% of the acquirer’s Raman spectroscopy instrument sales for 5 years following the closing date which will be due and payable on or before each anniversary of the closing date or a minimum earnout payment of $100,000 annually, whichever is higher. The maximum earnout payments during the payment period shall not exceed $1.0 million. | |||||
As the earnout is collected over an extended period of time and in management’s judgment the degree of collectibility is uncertain, Intevac did not recognize the minimum earnout payments upon closing, but instead will record income in the period when the minimum earnout payments can be reasonably estimated for that period and payment is assured. The first earnout payment in the amount of $75,000 was received in fiscal 2014 and was reported in other income (expense), net on the consolidated statement of operations. | |||||
The following table summarizes the components of the loss (in thousands): | |||||
Cash proceeds | $ | 500 | |||
Assets sold: | |||||
Accounts receivable | 147 | ||||
Inventories | 320 | ||||
Other current assets | 27 | ||||
Property, plant and equipment | 159 | ||||
Trade name | 90 | ||||
Total assets sold | 743 | ||||
Liabilities divested: | |||||
Accounts payable | 59 | ||||
Other accrued expenses | 6 | ||||
Total liabilities divested | 65 | ||||
Transaction and other costs | 30 | ||||
Loss on sale | $ | (208 | ) | ||
Sale of Mainframe Technology | |||||
On January 6, 2012, the Company sold certain assets including intellectual property and residual assets which comprised its semiconductor mainframe technology. | |||||
The following table summarizes the components of the gain (in thousands): | |||||
Cash proceeds | $ | 3,000 | |||
Assets sold: | |||||
Inventories | 589 | ||||
Property, plant and equipment | 178 | ||||
Transaction and other costs | 26 | ||||
Gain on sale | $ | 2,207 | |||
Financial_Instruments
Financial Instruments | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||||||||||||||||||||||||||
Financial Instruments | 9. Financial Instruments | ||||||||||||||||||||||||||||||||||||||||
Cash, Cash Equivalents and Investments | |||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents, short-term investments and long-term investments consist of: | |||||||||||||||||||||||||||||||||||||||||
January 3, 2015 | |||||||||||||||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||||||||||||||||||
Cost | Holding | Holding | Value | ||||||||||||||||||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||||||||||||||||||||||
Cash | $ | 4,948 | $ | — | $ | — | $ | 4,948 | |||||||||||||||||||||||||||||||||
Money market funds | 16,534 | — | — | 16,534 | |||||||||||||||||||||||||||||||||||||
Total cash and cash equivalents | $ | 21,482 | $ | — | $ | — | $ | 21,482 | |||||||||||||||||||||||||||||||||
Short-term investments: | |||||||||||||||||||||||||||||||||||||||||
Commercial paper | $ | 2,995 | $ | 2 | $ | — | $ | 2,997 | |||||||||||||||||||||||||||||||||
Corporate bonds and medium-term notes | 21,203 | 2 | 6 | 21,199 | |||||||||||||||||||||||||||||||||||||
Municipal bonds | 5,392 | 11 | 1 | 5,402 | |||||||||||||||||||||||||||||||||||||
Total short-term investments | $ | 29,590 | $ | 15 | $ | 7 | $ | 29,598 | |||||||||||||||||||||||||||||||||
Long-term investments: | |||||||||||||||||||||||||||||||||||||||||
Corporate bonds and medium-term notes | $ | 6,266 | $ | 1 | $ | 4 | $ | 6,263 | |||||||||||||||||||||||||||||||||
Municipal bonds | 2,290 | — | 8 | 2,282 | |||||||||||||||||||||||||||||||||||||
U.S. treasury and agency securities | 8,995 | 3 | 1 | 8,997 | |||||||||||||||||||||||||||||||||||||
Total long-term investments | $ | 17,551 | $ | 4 | $ | 13 | $ | 17,542 | |||||||||||||||||||||||||||||||||
Total cash, cash equivalents, and investments | $ | 68,623 | $ | 19 | $ | 20 | $ | 68,622 | |||||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||||||||||||||||||
Cost | Holding | Holding | Value | ||||||||||||||||||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||||||||||||||||||||||
Cash | $ | 5,819 | $ | — | $ | — | $ | 5,819 | |||||||||||||||||||||||||||||||||
Money market funds | 14,302 | — | — | 14,302 | |||||||||||||||||||||||||||||||||||||
Total cash and cash equivalents | $ | 20,121 | $ | — | $ | — | $ | 20,121 | |||||||||||||||||||||||||||||||||
Short-term investments: | |||||||||||||||||||||||||||||||||||||||||
Commercial paper | $ | 1,998 | $ | 1 | $ | — | $ | 1,999 | |||||||||||||||||||||||||||||||||
Corporate bonds and medium-term notes | 27,181 | 13 | 3 | 27,191 | |||||||||||||||||||||||||||||||||||||
Municipal bonds | 6,108 | 4 | — | 6,112 | |||||||||||||||||||||||||||||||||||||
U.S. treasury and agency securities | 13,506 | 7 | — | 13,513 | |||||||||||||||||||||||||||||||||||||
VRDNs | 160 | — | — | 160 | |||||||||||||||||||||||||||||||||||||
Total short-term investments | $ | 48,953 | $ | 25 | $ | 3 | $ | 48,975 | |||||||||||||||||||||||||||||||||
Long-term investments: | |||||||||||||||||||||||||||||||||||||||||
Corporate bonds and medium-term notes | $ | 8,811 | $ | 12 | $ | — | $ | 8,823 | |||||||||||||||||||||||||||||||||
Municipal bonds | 3,495 | 2 | 2 | 3,495 | |||||||||||||||||||||||||||||||||||||
Total long-term investments | $ | 12,306 | $ | 14 | $ | 2 | $ | 12,318 | |||||||||||||||||||||||||||||||||
Total cash, cash equivalents, and investments | $ | 81,380 | $ | 39 | $ | 5 | $ | 81,414 | |||||||||||||||||||||||||||||||||
The contractual maturities of available-for-sale securities at January 3, 2015 are presented in the following table. | |||||||||||||||||||||||||||||||||||||||||
Amortized | Fair | ||||||||||||||||||||||||||||||||||||||||
Cost | Value | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 45,121 | $ | 45,129 | |||||||||||||||||||||||||||||||||||||
Due after one through two years | 18,554 | 18,545 | |||||||||||||||||||||||||||||||||||||||
$ | 63,675 | $ | 63,674 | ||||||||||||||||||||||||||||||||||||||
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 January 3, 2015. | |||||||||||||||||||||||||||||||||||||||||
January 3, 2015 | |||||||||||||||||||||||||||||||||||||||||
In Loss Position for | In Loss Position for | ||||||||||||||||||||||||||||||||||||||||
Less than 12 Months | Greater than | ||||||||||||||||||||||||||||||||||||||||
12 Months | |||||||||||||||||||||||||||||||||||||||||
Fair | Gross | Fair | Gross | ||||||||||||||||||||||||||||||||||||||
Value | Unrealized | Value | Unrealized | ||||||||||||||||||||||||||||||||||||||
Losses | Losses | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||
Corporate bonds and medium-term notes | $ | 15,869 | $ | 10 | $ | — | $ | — | |||||||||||||||||||||||||||||||||
Municipal bonds | 3,281 | 9 | — | — | |||||||||||||||||||||||||||||||||||||
U.S. treasury and agency securities | 1,999 | 1 | — | — | |||||||||||||||||||||||||||||||||||||
$ | 21,149 | $ | 20 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||
All prices for the fixed maturity securities including U.S. treasury and agency securities, commercial paper, corporate bonds, VRDNs and municipal bonds are received from independent pricing services utilized by Intevac’s outside investment manager. This investment manager performs a review of the pricing methodologies and inputs utilized by the independent pricing services for each asset type priced by the vendor. In addition, on at least an annual basis, the investment manager conducts due diligence visits and interviews with each pricing vendor to verify the inputs utilized for each asset class. The due diligence visits include a review of the procedures performed by each vendor to ensure that pricing evaluations are representative of the price that would be received to sell a security in an orderly transaction. Any pricing where the input is based solely on a broker price is deemed to be a Level 3 price. Intevac uses the pricing data obtained from its outside investment manager as the primary input to make its assessments and determinations as to the ultimate valuation of the above-mentioned securities and has not made, during the periods presented, any material adjustments to such inputs. | |||||||||||||||||||||||||||||||||||||||||
The following table represents the fair value hierarchy of Intevac’s available-for-sale securities measured at fair value on a recurring basis as of January 3, 2015. | |||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||||||||||||||||||||
at January 3, 2015 | |||||||||||||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | |||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||
Recurring fair value measurements: | |||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||||||||||||||||||||||
Money market funds | $ | 16,534 | $ | 16,534 | $ | — | |||||||||||||||||||||||||||||||||||
U.S. treasury and agency securities | 8,997 | 6,997 | 2,000 | ||||||||||||||||||||||||||||||||||||||
Commercial paper | 2,997 | — | 2,997 | ||||||||||||||||||||||||||||||||||||||
Corporate bonds and medium-term notes | 27,462 | — | 27,462 | ||||||||||||||||||||||||||||||||||||||
Municipal bonds | 7,684 | — | 7,684 | ||||||||||||||||||||||||||||||||||||||
Total recurring fair value measurements | $ | 63,674 | $ | 23,531 | $ | 40,143 | |||||||||||||||||||||||||||||||||||
The following table presents the changes in Level 3 instruments which consisted of ARS which were classified as available-for-sale securities and which were measured on a recurring basis for the year ended December 31, 2012. The Company did not hold any ARS as of or during the year ended January 3, 2015. | |||||||||||||||||||||||||||||||||||||||||
2012 | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||
Opening balance | $ | 4,490 | |||||||||||||||||||||||||||||||||||||||
Total gains (losses) for the period | |||||||||||||||||||||||||||||||||||||||||
Included in earnings | (381 | ) | |||||||||||||||||||||||||||||||||||||||
Included in other comprehensive income | 410 | ||||||||||||||||||||||||||||||||||||||||
Proceeds from sales | (1,748 | ) | |||||||||||||||||||||||||||||||||||||||
Proceeds from tender offers | (2,771 | ) | |||||||||||||||||||||||||||||||||||||||
Closing balance | $ | — | |||||||||||||||||||||||||||||||||||||||
Derivatives | |||||||||||||||||||||||||||||||||||||||||
The Company uses foreign currency forward contracts to mitigate variability in gains and losses generated from the re-measurement of certain monetary assets and liabilities denominated in foreign currencies and to offset certain operational exposures from the impact of changes in foreign currency exchange rates. These derivatives are carried at fair value with changes recorded in interest income and other, net in the consolidated statements of operations. Changes in the fair value of these derivatives are largely offset by re-measurement of the underlying assets and liabilities. Cash flows from such derivatives are classified as operating activities. The derivatives have maturities of approximately 30, 60, 210 and 240 days. | |||||||||||||||||||||||||||||||||||||||||
The following table summarizes the Company’s outstanding derivative instruments on a gross basis as recorded in its consolidated balance sheets as of January 3, 2015 and December 31, 2013: | |||||||||||||||||||||||||||||||||||||||||
Notional Amounts | Derivative Assets | Derivative Liabilities | |||||||||||||||||||||||||||||||||||||||
Derivative Instrument | January 3, | December 31, | January 3, | December 31, | January 3, | December 31, | |||||||||||||||||||||||||||||||||||
2015 | 2013 | 2015 | 2013 | 2015 | 2013 | ||||||||||||||||||||||||||||||||||||
Balance | Fair | Balance | Fair | Balance | Fair | Balance | Fair | ||||||||||||||||||||||||||||||||||
Sheet | Value | Sheet | Value | Sheet | Value | Sheet | Value | ||||||||||||||||||||||||||||||||||
Line | Line | Line | Line | ||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||
Undesignated Hedges: | |||||||||||||||||||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 2,647 | $ | 894 | (a | ) | $ | 10 | — | $ | — | (b | ) | $ | 4 | — | $ | — | |||||||||||||||||||||||
Total Hedges | $ | 2,647 | $ | 894 | $ | 10 | $ | — | $ | 4 | $ | — | |||||||||||||||||||||||||||||
(a) | Prepaid expenses and other current assets | ||||||||||||||||||||||||||||||||||||||||
(b) | Other accrued liabilities |
Equity
Equity | 12 Months Ended | ||||||||||||
Jan. 03, 2015 | |||||||||||||
Equity | 10. Equity | ||||||||||||
Stock Repurchase Program | |||||||||||||
On November 21, 2013, Intevac’s Board of Directors approved a stock repurchase program authorizing up to $30.0 million in repurchases. Under this authorization, Intevac purchases shares of its common stock under a systematic stock repurchase program and may also make supplemental stock repurchases from time to time, depending on market conditions, stock price and other factors. At January 3, 2015, $20.0 million remains available for future stock repurchases under the repurchase program. | |||||||||||||
The following table summarizes Intevac’s stock repurchases for fiscal 2014, 2013 and 2012: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands, except per share amounts) | |||||||||||||
Shares of common stock repurchased | 1,185 | 241 | — | ||||||||||
Cost of stock repurchased | $ | 8,302 | $ | 1,688 | $ | — | |||||||
Average price paid per share | $ | 6.97 | $ | 6.97 | $ | — | |||||||
Intevac records treasury stock purchases under the cost method using the first-in, first-out (FIFO) method. Upon reissuance of treasury stock, amounts in excess of the acquisition cost are credited to additional paid in capital. If Intevac reissues treasury stock at an amount below its acquisition cost and additional paid in capital associated with prior treasury stock transactions is insufficient to cover the difference between the acquisition cost and the reissue price, this difference is recorded against retained earnings. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Jan. 03, 2015 | |||||||||||||
Income Taxes | 11. Income Taxes | ||||||||||||
The provision for (benefit from) income taxes on loss from continuing operations for fiscal 2014, 2013 and 2012 consists of the following (in thousands): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Federal: | |||||||||||||
Current | $ | (324 | ) | $ | (3,925 | ) | $ | 3 | |||||
Deferred | — | 3,387 | 17,160 | ||||||||||
(324 | ) | (538 | ) | 17,163 | |||||||||
State: | |||||||||||||
Current | 5 | 12 | (13 | ) | |||||||||
Deferred | — | — | — | ||||||||||
5 | 12 | (13 | ) | ||||||||||
Foreign: | |||||||||||||
Current | 81 | (38 | ) | (150 | ) | ||||||||
Deferred | 8,666 | (1,158 | ) | (3,760 | ) | ||||||||
8,747 | (1,196 | ) | (3,910 | ) | |||||||||
Total | $ | 8,428 | $ | (1,722 | ) | $ | 13,240 | ||||||
Loss before income taxes (benefit) for fiscal 2014, 2013 and 2012 consisted of the following (in thousands): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
U.S | $ | (13,191 | ) | $ | (11,478 | ) | $ | (32,128 | ) | ||||
Foreign | (5,826 | ) | (5,940 | ) | (9,951 | ) | |||||||
$ | (19,017 | ) | $ | (17,418 | ) | $ | (42,079 | ) | |||||
Effective tax rate | (44.3 | )% | 9.9 | % | (31.5 | )% | |||||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts for income tax purposes. Significant components of deferred tax assets are as follows (in thousands): | |||||||||||||
January 3, | December 31, | ||||||||||||
2015 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Vacation, warranty and other accruals | $ | 997 | $ | 1,269 | |||||||||
Depreciation and amortization | 538 | 1,554 | |||||||||||
Intangible amortization | 2,767 | 3,235 | |||||||||||
Inventory valuation | 3,117 | 1,706 | |||||||||||
Deferred income | 1,621 | 43 | |||||||||||
Equity-based compensation | 5,920 | 6,242 | |||||||||||
Net operating loss, research and other tax credit carryforwards | 47,044 | 43,470 | |||||||||||
Other | 358 | 49 | |||||||||||
62,362 | 57,568 | ||||||||||||
Valuation allowance for deferred tax assets | (60,612 | ) | (46,126 | ) | |||||||||
Total deferred tax assets | 1,750 | 11,442 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Purchased technology | (1,195 | ) | (1,488 | ) | |||||||||
Unbilled revenue | (555 | ) | (1,004 | ) | |||||||||
Other | — | (284 | ) | ||||||||||
Total deferred tax liabilities | (1,750 | ) | (2,776 | ) | |||||||||
Net deferred tax assets | $ | — | $ | 8,666 | |||||||||
As reported on the balance sheet: | |||||||||||||
Current deferred tax assets | $ | — | $ | 103 | |||||||||
Non-current deferred tax assets | 5 | 9,502 | |||||||||||
Current deferred tax liability | (5 | ) | (939 | ) | |||||||||
$ | — | $ | 8,666 | ||||||||||
Intevac accounts for income taxes in accordance with accounting standards for such taxes, which requires that deferred tax assets and liabilities be recognized using enacted tax rates for the effect of temporary differences between the financial reporting and tax bases of recorded assets and liabilities. Accounting standards also require that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some portion of or all of the deferred tax asset will not be realized. | |||||||||||||
Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. A significant element of objective negative evidence evaluated was the cumulative loss incurred over the three-year periods ended January 3, 2015, December 31, 2013 and December 31, 2012. Such objective evidence limits the ability to consider other subjective evidence such as Intevac’s projections for future growth. On the basis of this analysis and the significant negative objective evidence, for fiscal 2014, a valuation allowance of $9.4 million was added to record only the portion of the Singapore deferred tax asset that more likely than not will be realized. | |||||||||||||
In fiscal 2012, a valuation allowance of $23.4 million was added to record only the portion of the U.S. federal deferred tax asset that more likely than not will be realized. For fiscal 2014 and 2013, valuation allowance increases of $4.7 million and $7.2 million, respectively for the U.S. federal deferred tax asset were recorded. A valuation allowance is recorded against the entire state deferred tax asset which consists of state income tax temporary differences and deferred research and other tax credits that are not realizable in the foreseeable future. | |||||||||||||
The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are reduced or increased, or if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence such as our projections for growth. | |||||||||||||
As of January 3, 2015, our federal, foreign and state net operating loss carryforwards for income tax purposes were approximately $51.6 million, $56.1 million and $61.3 million, respectively. The federal and state net operating loss carryforwards are subject to various limitations under Section 382 of the Internal Revenue Code and applicable state tax laws. If not utilized, the federal net operating loss carryforwards will begin to expire in 2028 and the state net operating loss carryforwards will begin to expire in 2015. The foreign net operating loss carryforwards do not expire. As of January 3, 2015, our federal and state tax credit carryforwards for income tax purposes were approximately $11.3 million and $12.0 million, respectively. If not utilized, the federal tax credit carryforwards will begin to expire in 2019 and the state tax credits carry forward indefinitely. | |||||||||||||
The difference between the tax provision (benefit) at the statutory federal income tax rate and the tax provision (benefit) for fiscal 2014, 2013 and 2012 was as follows (in thousands): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Income tax (benefit) at the federal statutory rate | $ | (6,656 | ) | $ | (6,096 | ) | $ | (14,728 | ) | ||||
State income taxes, net of federal benefit | 5 | 12 | (15 | ) | |||||||||
Change in valuation allowance: | |||||||||||||
U.S | 4,733 | 7,201 | 23,330 | ||||||||||
Foreign | 9,394 | — | — | ||||||||||
Effect of foreign operations taxed at various rates | 1,662 | 983 | (428 | ) | |||||||||
Nondeductible goodwill impairment | — | — | 3,670 | ||||||||||
Research tax credits | (569 | ) | (2,284 | ) | — | ||||||||
Effect of tax rate changes, permanent differences and adjustments of prior deferrals | 153 | (1,062 | ) | 367 | |||||||||
Unrecognized tax benefits | (294 | ) | (476 | ) | 1,044 | ||||||||
Total | $ | 8,428 | $ | (1,722 | ) | $ | 13,240 | ||||||
Intevac has not provided for U.S. federal income and foreign withholding taxes on approximately $11.8 million of undistributed earnings from non-U.S. operations as of January 3, 2015 because Intevac intends to reinvest such earnings indefinitely outside of the United States. If Intevac were to distribute these earnings, foreign tax credits may become available under current law to reduce the resulting U.S. income tax liability. Determination of the amount of unrecognized deferred tax liability related to these earnings is not practicable. Intevac will remit the non-indefinitely reinvested earnings, if any, of Intevac’s non-U.S. subsidiaries where excess cash has accumulated and Intevac determines that it is advantageous for business operations, tax or cash reasons. | |||||||||||||
Intevac benefitted from a tax holiday in Singapore which was scheduled to expire at the end of 2015. The tax holiday provided a lower income tax rate on certain classes of income so long as certain thresholds of business investment and employment levels were met in Singapore. Intevac was granted an early termination of this tax holiday effective January 1, 2013 by the Singapore tax authority. The terms of the early termination include meeting certain agreed upon future annual business spending and staffing levels in Singapore. Failure to meet the terms of the early termination could result in a claw back by the Singapore government of tax benefits received in previous years. As a result of this incentive, the impact of the tax holiday decreased income taxes by $1.6 million in 2012. The benefit of the tax holiday on the net loss per share (diluted) was approximately $0.07 in 2012. | |||||||||||||
The total amount of gross unrecognized tax benefits was $6.6 million as of January 3, 2015, of which $250,000 would affect Intevac’s effective tax rate if realized. The aggregate changes in the balance of gross unrecognized tax benefits were as follows for fiscal 2014, 2013 and 2012: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Beginning balance | $ | 6,482 | $ | 6,000 | $ | 5,022 | |||||||
Additions based on tax positions related to the current year | 57 | 597 | 978 | ||||||||||
Additions for tax positions of prior years | 250 | 98 | — | ||||||||||
Settlements | — | — | — | ||||||||||
Lapse of statute of limitations | (211 | ) | (213 | ) | — | ||||||||
Ending balance | $ | 6,578 | $ | 6,482 | $ | 6,000 | |||||||
The Company does not anticipate any changes in the amount of unrecognized tax benefits in the next twelve months. It is Intevac’s policy to include interest and penalties related to unrecognized tax benefits in the provision for income taxes on the consolidated statements of operations. During fiscal 2014 and 2013, Intevac recognized a net tax benefit for interest of $110,000 and $13,000, respectively. As of January 3, 2015 Intevac had $7,000 of accrued interest related to unrecognized tax benefits, which was classified as a long-term liability in the consolidated balance sheets. Intevac did not accrue any penalties related to these unrecognized tax benefits because Intevac has other tax attributes which would offset any potential taxes due. | |||||||||||||
Intevac is subject to income taxes in the U.S. federal jurisdiction, and various state and foreign jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. The material jurisdictions where Intevac is subject to potential examination by tax authorities for tax years after 2009 include the U.S. (Federal and California) and Singapore. The Singapore Inland Revenue Authority is currently conducting a review of the fiscal 2009 through 2012 tax returns of the Company’s wholly-owned subsidiary, Intevac Asia Pte. Ltd. We believe that adequate amounts have been reserved for any adjustments that may ultimately result from this or other examinations. Presently, there are no other active income tax examinations in the jurisdictions where Intevac operates. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Jan. 03, 2015 | |
Employee Benefit Plans | 12. Employee Benefit Plans |
Employee Savings and Retirement Plan | |
In 1991, Intevac established a defined contribution retirement plan with 401(k) plan features. The plan covers all United States employees eighteen years and older. Employees may make contributions by a percentage reduction in their salaries, not to exceed the statutorily prescribed annual limit. Intevac did not make any cash contributions for fiscal 2014. Intevac made cash contributions $422,000 and $501,000 for fiscal 2013, and 2012, respectively. Employees may choose among several investment options for their contributions and their share of Intevac’s contributions, and they are able to move funds between investment options at any time. Intevac’s common stock is not one of the investment options. Administrative expenses relating to the plan are insignificant. | |
Employee Bonus Plans | |
Intevac has various employee bonus plans. A profit-sharing plan provides for the distribution of a percentage of pre-tax profits to substantially all of Intevac’s employees not eligible for other performance-based incentive plans, up to a maximum percentage of compensation. Other plans award annual cash bonuses to Intevac’s executives and key contributors based on the achievement of profitability and other specific performance criteria. Charges to expense under these plans were $22,000, $1.7 million and $210,000, respectively for fiscal 2014, 2013 and 2012. In fiscal 2014, the annual bonus for certain participants in the Company’s annual incentive plan will be settled with RSUs with one year vesting. Charges for bonuses in the amount of $554,000 which will be settled in RSUs were reported as stock compensation expense. See Note 2 “Equity-Based Compensation.” |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||
Jan. 03, 2015 | |||||||||
Commitments and Contingencies | 13. Commitments and Contingencies | ||||||||
Leases | |||||||||
Intevac leases certain facilities under non-cancelable operating leases that expire at various times up to March 2024 and has options to renew most leases, with rentals to be negotiated. Certain of Intevac’s leases contain provisions for rental adjustments. Included in other long-term liabilities on the consolidated balance sheets is $861,000 of deferred rent as of January 3, 2015 related to the effective rent on Intevac’s long-term lease for Intevac’s Santa Clara, California facility. The terms of the Company’s lease of its Santa Clara, California facility include a tenant improvement allowance of up to $1.7 million. Tenant improvement allowances are reimbursements received from the landlord for construction costs and are amortized on a straight-line basis over the lease term as a reduction in rent. The tenant improvement allowances are recorded when the Company has completed its obligations and the tenant improvement allowance is receivable. In addition, Intevac is required to maintain a standby letter of credit for $1.0 million for this lease. This standby letter of credit is secured with $1.0 million of restricted cash. The facility leases require Intevac to pay for all normal maintenance costs. Gross rental expense was approximately $3.8 million, $2.9 million and $3.0 million for fiscal 2014, 2013, and 2012, respectively. | |||||||||
As of January 3, 2015, future minimum lease payments are as follows. | |||||||||
(in thousands) | |||||||||
2015 | $ | 3,206 | |||||||
2016 | 3,075 | ||||||||
2017 | 2,640 | ||||||||
2018 | 2,630 | ||||||||
2019 | 2,709 | ||||||||
Thereafter | 12,440 | ||||||||
$ | 26,700 | ||||||||
Guarantees | |||||||||
Officer and Director Indemnifications | |||||||||
As permitted or required under Delaware law and to the maximum extent allowable under that law, Intevac has certain obligations to indemnify its current and former officers and directors for certain events or occurrences while the officer or director is, or was serving, at Intevac’s request in such capacity. These indemnification obligations are valid as long as the director or officer acted in good faith and in a manner the person reasonably believed to be in or not opposed to the best interests of the Company and, with respect to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful. The maximum potential amount of future payments Intevac could be required to make under these indemnification obligations is unlimited; however, Intevac has a director and officer insurance policy that mitigates Intevac’s exposure and enables Intevac to recover a portion of any future amounts paid. As a result of Intevac’s insurance policy coverage, Intevac believes the estimated fair value of these indemnification obligations is not material. | |||||||||
Other Indemnifications | |||||||||
As is customary in Intevac’s industry, many of Intevac’s contracts provide remedies to certain third parties such as defense, settlement, or payment of judgment for intellectual property claims related to the use of its products. Such indemnification obligations may not be subject to maximum loss clauses. Historically, payments made related to these indemnifications have been immaterial. | |||||||||
Letters of Credit | |||||||||
As of January 3, 2015, we had letters of credit and bank guarantees outstanding totaling $1.8 million, including the standby letter of credit outstanding under the Santa Clara, California facility lease and a banker’s guarantee which guarantees customer advances under a customer contract. | |||||||||
Warranty | |||||||||
Intevac provides for the estimated cost of warranty when revenue is recognized. Intevac’s warranty is per contract terms and for its disk manufacturing, PV manufacturing and display cover panel manufacturing systems the warranty typically ranges between 12 and 24 months from customer acceptance. For systems sold through a distributor, Intevac offers a 3 month warranty. The remainder of any warranty period is the responsibility of the distributor. During this warranty period any defective non-consumable parts are replaced and installed at no charge to the customer. The warranty period on consumable parts is limited to their reasonable usable lives. Intevac uses estimated repair or replacement costs along with its historical warranty experience to determine its warranty obligation. Intevac generally provides a twelve month warranty on its Photonics’ products. The provision for the estimated future costs of warranty is based upon historical cost and product performance experience. Intevac exercises judgment in determining the underlying estimates. | |||||||||
On the consolidated balance sheets, the short-term portion of the warranty provision is included in other accrued liabilities, while the long-term portion is included in other long-term liabilities. The expense associated with product warranties issued or adjusted is included in cost of net revenues on the consolidated statements of operations. | |||||||||
The following table displays the activity in the warranty provision account for fiscal 2014 and 2013: | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Beginning balance | $ | 1,647 | $ | 2,349 | |||||
Expenditures incurred under warranties | (834 | ) | (1,033 | ) | |||||
Accruals for product warranties | 931 | 1,091 | |||||||
Adjustments to previously existing warranty accruals | (558 | ) | (760 | ) | |||||
Ending balance | $ | 1,186 | $ | 1,647 | |||||
Legal Matters | |||||||||
From time to time, Intevac receives notification from third parties, including customers and suppliers, seeking indemnification, litigation support, payment of money or other actions in connection with claims made against them. In addition, from time to time, Intevac receives notification from third parties claiming that Intevac may be or is infringing their intellectual property or other rights. Intevac also is subject to various other legal proceedings and claims, both asserted and unasserted, that arise in the ordinary course of business. Although the outcome of these claims and proceedings cannot be predicted with certainty, Intevac does not believe that any of these other existing proceedings or claims will have a material adverse effect on its consolidated financial condition or results of operations. |
Segment_and_Geographic_Informa
Segment and Geographic Information | 12 Months Ended | ||||||||||||
Jan. 03, 2015 | |||||||||||||
Segment and Geographic Information | 14. Segment and Geographic Information | ||||||||||||
Intevac’s two reportable segments are: Equipment and Photonics. Intevac’s chief operating decision-maker has been identified as the President and CEO, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. Segment information is presented based upon Intevac’s management organization structure as of January 3, 2015 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 Equipment segment designs, develops and markets vacuum process equipment solutions for high-volume manufacturing of small substrates with precise thin-film properties for hard drive, solar cell and cell phone manufacturers as well as other adjacent thin-film deposition applications. | |||||||||||||
The Photonics segment develops compact, cost-effective, high-sensitivity digital-optical products for the capture and display of low-light images and the optical analysis of materials. Intevac provides sensors, cameras and systems for government applications such as night vision and long-range target identification. | |||||||||||||
Information for each reportable segment for fiscal 2014, 2013 and 2012 is as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Net Revenues | |||||||||||||
Equipment | $ | 25,290 | $ | 39,135 | $ | 52,538 | |||||||
Photonics | 40,260 | 30,497 | 30,886 | ||||||||||
Total segment net revenues | $ | 65,550 | $ | 69,632 | $ | 83,424 | |||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Operating Profit (Loss) | |||||||||||||
Equipment | $ | (22,008 | ) | $ | (12,951 | ) | $ | (19,934 | ) | ||||
Photonics | 8,932 | 1,058 | (206 | ) | |||||||||
Total segment operating profit (loss) | (13,076 | ) | (11,893 | ) | (20,140 | ) | |||||||
Unallocated costs | (6,278 | ) | (5,722 | ) | (6,181 | ) | |||||||
Impairment of goodwill and intangible assets | — | — | (18,419 | ) | |||||||||
Gain (loss) on divestitures | — | (208 | ) | 2,207 | |||||||||
Operating loss | (19,354 | ) | (17,823 | ) | (42,533 | ) | |||||||
Interest income | 179 | 279 | 806 | ||||||||||
Other income (expense), net | 158 | 126 | (352 | ) | |||||||||
Loss before income taxes | $ | (19,017 | ) | $ | (17,418 | ) | $ | (42,079 | ) | ||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Depreciation and Amortization | |||||||||||||
Equipment | $ | 2,379 | $ | 2,146 | $ | 2,003 | |||||||
Photonics | 1,834 | 1,900 | 1,806 | ||||||||||
Total segment depreciation and amortization | 4,213 | 4,046 | 3,809 | ||||||||||
Unallocated costs | 492 | 472 | 670 | ||||||||||
Total consolidated depreciation and amortization | $ | 4,705 | $ | 4,518 | $ | 4,479 | |||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Capital Additions | |||||||||||||
Equipment | $ | 2,230 | $ | 1,857 | $ | 1,260 | |||||||
Photonics | 1,203 | 894 | 1,535 | ||||||||||
Total segment capital additions | 3,433 | 2,751 | 2,795 | ||||||||||
Unallocated | 272 | 572 | 485 | ||||||||||
Total consolidated capital additions | $ | 3,705 | $ | 3,323 | $ | 3,280 | |||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Segment Assets | |||||||||||||
Equipment | $ | 30,670 | $ | 33,428 | |||||||||
Photonics | 17,126 | 21,120 | |||||||||||
Total segment assets | 47,796 | 54,548 | |||||||||||
Cash and investments | 68,622 | 81,414 | |||||||||||
Restricted cash | 1,780 | — | |||||||||||
Deferred income taxes | 5 | 9,605 | |||||||||||
Other current assets | 989 | 982 | |||||||||||
Common property, plant and equipment | 1,083 | 1,302 | |||||||||||
Other assets | — | 425 | |||||||||||
Consolidated total assets | $ | 120,275 | $ | 148,276 | |||||||||
Geographic revenue information for fiscal 2014, 2013 and 2012 is based on the location of the customer. Revenue from unaffiliated customers by geographic region/country was as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
United States | $ | 51,584 | $ | 32,534 | $ | 30,845 | |||||||
Asia (*) | 9,931 | 31,907 | 47,712 | ||||||||||
Europe | 4,035 | 5,191 | 3,795 | ||||||||||
Rest of world | — | — | 1,072 | ||||||||||
Total net revenues | $ | 65,550 | $ | 69,632 | $ | 83,424 | |||||||
(*) | Revenues are attributable to the geographic area in which Intevac’s customers are located. Net trade revenues in Asia include shipments to Singapore, China, Japan and Malaysia. | ||||||||||||
Net property, plant and equipment by geographic region at January 3, 2015 and December 31, 2013 was as follows: | |||||||||||||
January 3, | December 31, | ||||||||||||
2015 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
United States | $ | 11,534 | $ | 11,240 | |||||||||
Asia | 1,292 | 1,705 | |||||||||||
Net property, plant & equipment | $ | 12,826 | $ | 12,945 | |||||||||
Restructuring_Charges
Restructuring Charges | 12 Months Ended | ||||||||
Jan. 03, 2015 | |||||||||
Restructuring Charges | 15. Restructuring Charges | ||||||||
During the first half of fiscal 2014, Intevac substantially completed implementation of the 2014 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 consolidated statements of operations. Substantially all cash outlays in connection with the Plan occurred in the first half of fiscal 2014. Implementation of the Plan is expected to reduce salary, wages and other employee-related expenses by approximately $2.1 million on an annual basis. As of January 3, 2015, activities related to the Plan were complete. | |||||||||
On February 1, 2013, Intevac announced the 2013 cost reduction plan (the “2013 Plan”) to reduce expenses including a reduction in its workforce. Implementation of the 2013 Plan was substantially completed in the first half of fiscal 2013 and the Company reduced its workforce by 18 percent. The cost of implementing the 2013 Plan was reported under cost of net revenues and operating expenses in the consolidated statement of operations. Substantially all cash outlays in connection with the 2013 Plan occurred in the first half of fiscal 2013. As of January 3, 2015, activities related to the 2013 Plan were complete. | |||||||||
The changes in restructuring reserves associated with the Plan for fiscal 2014 and 2013, are as follows. | |||||||||
Severance and | |||||||||
other employee- | |||||||||
related costs | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Balance at the beginning of the year | $ | — | $ | — | |||||
Provision for restructuring charges | 288 | 742 | |||||||
Cash payments made | (288 | ) | (742 | ) | |||||
Balance at the end of the year | $ | — | $ | — | |||||
Selected_Quarterly_Consolidate
Selected Quarterly Consolidated Financial Data (Unaudited) | 12 Months Ended | ||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||
Selected Quarterly Consolidated Financial Data (Unaudited) | 16. Selected Quarterly Consolidated Financial Data (Unaudited) | ||||||||||||||||
Three Months Ended | |||||||||||||||||
March 29, | June 28, | Sept. 27, | Jan. 03, | ||||||||||||||
2014 | 2014 | 2014 | 2015 | ||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
Net sales | $ | 17,015 | $ | 14,715 | $ | 14,757 | $ | 19,062 | |||||||||
Gross profit | 4,810 | 5,211 | 4,815 | 2,596 | |||||||||||||
Net loss | (4,521 | ) | (5,007 | ) | (3,559 | ) | (14,358 | ) | |||||||||
Basic and diluted loss per share | $ | (0.19 | ) | $ | (0.21 | ) | $ | (0.15 | ) | $ | (0.62 | ) | |||||
Three Months Ended | |||||||||||||||||
March 30, | June 29, | Sept. 28, | Dec. 31, | ||||||||||||||
2013 | 2013 | 2013 | 2013 | ||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
Net sales | $ | 12,982 | $ | 16,983 | $ | 19,115 | $ | 20,552 | |||||||||
Gross profit | 3,514 | 3,829 | 6,895 | 7,737 | |||||||||||||
Net income (loss) | (8,264 | ) | (6,412 | ) | (2,745 | ) | 1,725 | ||||||||||
Basic and diluted loss per share | $ | (0.35 | ) | $ | (0.27 | ) | $ | (0.11 | ) | $ | 0.07 |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Jan. 03, 2015 | |||||||||||||
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation | ||||||||||||
The consolidated financial statements include the accounts of Intevac, Inc. and its subsidiaries (Intevac or the Company) after elimination of inter-company balances and transactions. | |||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. | |||||||||||||
Change in Fiscal Year End-Date | Change in Fiscal Year End Date | ||||||||||||
On February 19, 2014, the Board of Directors of the Company approved the Company’s change to a 52-53 week fiscal year ending on the Saturday nearest to December 31 of each year in order to improve the alignment of financial and business processes and to streamline financial reporting. Each fiscal quarter consists of 13 weeks, with an occasional fourth quarter extending to 14 weeks, if necessary, for the fiscal year to end on the Saturday nearest to December 31. The Company’s fiscal 2014 year ended on January 3, 2015. | |||||||||||||
Cash, Cash Equivalents and Investments | Cash, Cash Equivalents and Investments | ||||||||||||
Intevac considers all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents. Available-for-sale securities, comprised of commercial paper, obligations of the U.S. government and its agencies, corporate debt securities, municipal bonds, and VRDNs, are carried at fair value, with unrealized gains and losses recorded within other comprehensive income (loss) as a separate component of stockholders’ equity. Realized gains and losses and declines in value judged to be other than temporary, if any, on available-for-sale securities are included in earnings. Purchases and sales of investment securities are recognized on a trade date basis. The cost of investment securities sold is determined by the specific identification method. | |||||||||||||
Restricted Cash | Restricted Cash | ||||||||||||
Restricted cash of $1.0 million as of January 3, 2015 secures a standby letter of credit obligation associated with a lease obligation and the restriction on the cash will be removed when the letter of credit expires. In addition Intevac pledged $780,000 as collateral for a banker’s guarantee on an advance payment made by a customer. | |||||||||||||
Derivative Instruments and Hedging Arrangements | Derivative Instruments and Hedging Arrangements | ||||||||||||
Foreign Exchange Exposure Management—Intevac enters into forward foreign currency contracts that economically hedge the gains and losses generated by the re-measurement of certain recorded assets and liabilities in a non-functional currency and to offset certain operational exposures from the impact of changes in foreign currency exchange rates. Such exposures result from the portion of the Company’s operations, assets and liabilities that are denominated in currencies other than the U.S. dollar, primarily the Singapore dollar. These foreign currency exchange contracts are entered into to support transactions made in the normal course of business, and accordingly, are not speculative in nature. The contracts are for periods consistent with the terms of the underlying transactions, generally one year or less. Changes in the fair value of these undesignated hedges are recognized in other income (expense), net immediately as an offset to the changes in the fair value of the asset or liability being hedged. | |||||||||||||
Fair Value Measurement-Definition and Hierarchy | Fair Value Measurement—Definition and Hierarchy | ||||||||||||
Intevac reports certain financial assets and liabilities at fair value. Intevac defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. | |||||||||||||
Fair value measurements are classified and disclosed in one of the following three categories: | |||||||||||||
Level 1—Valuations based on quoted prices in active markets for identical assets or liabilities. | |||||||||||||
Level 2—Valuations based on other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||||||||||||
Level 3—Valuations based on inputs that are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. | |||||||||||||
Business Combinations | Business Combinations | ||||||||||||
Intevac accounts for business combinations using the acquisition method of accounting. Transaction costs are expensed as incurred. IPR&D costs are capitalized as an intangible asset. Contingent consideration is recorded as a liability at the measurement date with subsequent re-measurements recorded as an operating expense. Costs for business restructuring and exit activities related to the acquired company are included in the post-combination financial results. | |||||||||||||
Trade Accounts and Notes Receivables and Doubtful Accounts | Trade Accounts and Notes Receivables and Doubtful Accounts | ||||||||||||
Intevac evaluates the collectibility of trade accounts receivables and notes receivable on an ongoing basis and provides reserves against potential losses when appropriate. Management analyzes historical bad debts, customer concentrations, customer creditworthiness, changes in customer payment tendencies and current economic trends when evaluating the adequacy of the allowance for doubtful accounts. Customer accounts are written off against the allowance when the amount is deemed uncollectible. Also, accounts determined to be uncollectible are put in nonaccrual status whereby interest is not accrued on those accounts. | |||||||||||||
Inventories | Inventories | ||||||||||||
Inventories are generally stated at the lower of cost or market, with cost determined on an average cost basis. | |||||||||||||
Property, Plant and Equipment | Property, Plant and Equipment | ||||||||||||
Equipment and leasehold improvements are stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets as follows: computers and software, 3 years; machinery and equipment, 5 years; furniture, 7 years; vehicles, 4 years; and leasehold improvements, remaining lease term. | |||||||||||||
Goodwill and Purchased Intangible Assets | Goodwill and Purchased Intangible Assets | ||||||||||||
The purchase price of an acquired business is allocated, as applicable, between IPR&D, other identifiable intangible assets, net tangible assets and goodwill. IPR&D is defined as the value assigned to those projects for which the related products have no alternative future use. Determining the portion of the purchase price allocated to IPR&D and other intangible assets requires the Company to make significant estimates. The amount of the purchase price allocated to IPR&D and other intangible assets is determined by estimating the future cash flows of each project or technology and discounting the net cash flows back to their present values. The discount rate used is determined at the time of the acquisition in accordance with accepted valuation methods. For IPR&D, these valuation methodologies include consideration of the risk of the project not achieving commercial feasibility. The IPR&D will be subject to amortization upon commercialization. If the technology is abandoned, the IPR&D will be written-off. | |||||||||||||
Contingent consideration is recorded at the acquisition date at the estimated fair value of the contingent payments. The acquisition date fair value is measured based on the consideration expected to be transferred (probability-weighted), discounted back to present value. The discount rate used is determined at the time of the acquisition in accordance with accepted valuation methods. The fair value of the contingent consideration is remeasured at the estimated fair value at each reporting period with the change in fair value recognized as income or expense in the consolidated statements of operations. | |||||||||||||
Goodwill represents the excess of the aggregate purchase price over the fair value of net assets, including IPR&D, of acquired businesses. Intevac’s methodology for allocating the purchase price relating to purchase acquisitions is determined through established and generally accepted valuation techniques. Goodwill is measured as the excess of the cost of the acquisition over the sum of the amounts assigned to tangible and identifiable intangible assets acquired less liabilities assumed. Intevac assigns assets acquired (including goodwill) and liabilities assumed to a reporting unit as of the date of acquisition. | |||||||||||||
Purchased intangible assets other than goodwill are amortized over their useful lives unless these lives are determined to be indefinite. Purchased intangible assets are carried at cost, less accumulated amortization. Amortization is computed over the estimated useful lives of the respective assets, generally one to thirteen years using the straight line method. | |||||||||||||
Goodwill and purchased intangible assets with indefinite useful lives were not amortized, but are reviewed for impairment annually during the fourth quarter of each fiscal year and whenever events or changes in circumstances indicated that the carrying value of an asset may not have been recoverable. For goodwill, Intevac performed a two-step impairment test. In the first step, Intevac compared the fair value of each reporting unit to its carrying value. Intevac’s reporting units are consistent with the reportable segments identified in Note 14, based on the manner in which Intevac operates its business and the nature of those operations. Depending on the facts and circumstances Intevac determined the fair value of each of its reporting units based upon the most appropriate valuation technique using the income approach, the market approach or a combination thereof. The income and market approaches were selected as management believed these approaches generally provided the most reliable indications of fair value when the value of the operations was more dependent on the ability to generate earnings than on the value of the assets used in the production process. Under the income approach Intevac calculated the fair value of the reporting units based on the present value of estimated future cash flows. Under the market approach Intevac estimated the fair value based on market multiples of revenue or earnings for comparable companies. Each valuation technique has advantages and drawbacks, which must be considered when applying those techniques. The income approach closely correlates to management’s expectations of future results but requires significant assumptions which can be highly sensitive. The market approach is relatively straightforward to measure, but it may be difficult to find directly comparable companies in the marketplace. If the fair value of the reporting unit exceeded the carrying value of the net assets assigned to that unit, goodwill was not impaired and no further testing was performed. If the carrying value of the net assets assigned to the reporting unit exceeded the fair value of the reporting unit, then Intevac would perform the second step of the impairment test in order to determine the implied fair value of the reporting unit’s goodwill. If the carrying value of a reporting unit’s goodwill exceeded its implied fair value, Intevac would record an impairment loss equal to the difference. In 2012, as a result of its impairment analysis, Intevac wrote off all of the goodwill in both its Equipment and Photonics reporting units. | |||||||||||||
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets | ||||||||||||
Long-lived assets and certain identifiable finite-lived intangible assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability of long-lived assets is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. Measurement of an impairment loss for long-lived assets and certain identifiable intangible assets that management expects to hold and use is based on the fair value of the asset. When an impairment loss is recognized, the carrying amount of the asset is reduced to its estimated fair value. No impairment charges were recognized in fiscal 2014, 2013 and 2012. | |||||||||||||
Income Taxes | Income Taxes | ||||||||||||
Deferred tax assets and liabilities are recognized using enacted tax rates for the effect of temporary differences between book and tax bases of recorded assets and liabilities. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that a portion of the deferred tax asset will not be realized. | |||||||||||||
On a quarterly basis, Intevac provides for income taxes based upon an annual effective income tax rate. The effective tax rate is highly dependent upon the level of Intevac’s projected earnings, the geographic composition of worldwide earnings, tax regulations governing each region, net operating loss carryforwards, availability of tax credits and the effectiveness of Intevac’s tax planning strategies. Intevac carefully monitors the changes in many factors and adjust its effective income tax rate on a timely basis. If actual results differ from the estimates, this could have a material effect on Intevac’s business, financial condition and results of operations. | |||||||||||||
The calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of complex tax laws. Resolution of these uncertainties in a manner inconsistent with Intevac’s expectations could have a material effect on Intevac’s business, financial condition and results of operations. | |||||||||||||
Intevac recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes. | |||||||||||||
Sales and Value Added Taxes | Sales and Value Added Taxes | ||||||||||||
Taxes collected from customers and remitted to governmental authorities are presented on a net basis in the accompanying consolidated statements of operations. | |||||||||||||
Revenue Recognition | Revenue Recognition | ||||||||||||
Intevac recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred and title and risk of loss have passed to Intevac’s customer or services have been rendered, the price is fixed or determinable, and collectibility is reasonably assured. Intevac’s shipping terms are customarily FOB shipping point or equivalent terms. Intevac’s revenue recognition policy generally results in revenue recognition at the following points: (1) for all transactions where legal title passes to the customer upon shipment, Intevac recognizes revenue upon shipment for all products that have been demonstrated to meet product specifications prior to shipment; the portion of revenue associated with certain installation-related tasks is deferred, and that revenue is recognized upon completion of the installation-related tasks; (2) for products that have not been demonstrated to meet product specifications prior to shipment, revenue is recognized at customer acceptance; and (3) for arrangements containing multiple elements, the revenue relating to the undelivered elements is deferred until delivery of the deferred elements. When a sales arrangement contains multiple elements, Intevac allocates revenue to each element based on a selling price hierarchy. The selling price for a deliverable is based on its VSOE if available, TPE if VSOE is not available, or best ESP if neither VSOE nor TPE is available. Intevac generally utilizes the ESP due to the nature of its products. In certain cases, technology upgrade sales are accounted for as multiple-element arrangements, usually split between delivery of the parts and installation on the customer’s systems. In these cases, Intevac recognizes revenue for the relative sales price of the parts upon shipment and transfer of title, and recognizes revenue for the relative sales price of installation services when those services are completed. Revenue related to sales of spare parts is generally recognized upon shipment. Revenue related to services is generally recognized upon completion of the services. In addition, Intevac uses the installment method to record revenue based on cash receipts in situations where the account receivable is collected over an extended period of time and in management’s judgment the degree of collectibility is uncertain. | |||||||||||||
Intevac performs research and development work under various government-sponsored research contracts. Revenue on cost-plus-fee contracts is recognized to the extent of costs actually incurred plus a proportionate amount of the fee earned. Intevac considers fixed fees under cost-plus-fee contracts to be earned in proportion to the allowable costs actually incurred in performance of the contract. Revenue on fixed-price contracts is recognized on a milestone method or percentage-of-completion method of contract accounting. For contracts structured as milestone agreements, revenue is recognized when a specified milestone is achieved, provided that (1) the milestone event is substantive in nature and there is substantial uncertainty about the achievement of the milestone at the inception of the agreement, (2) the milestone payment is non-refundable, and (3) there is no continuing performance obligations associated with the milestone payment. Any milestone payments received prior to satisfying these revenue recognition criteria are deferred. Intevac generally determines the percentage completed based on the percentage of costs incurred to date in relation to total estimated costs expected through completion of the contract. When estimates of total costs to be incurred on a contract exceed estimates of total revenue to be earned, a provision for the entire loss on the contract is recorded in the period the loss is determined. | |||||||||||||
Advertising Costs | Advertising Costs | ||||||||||||
Advertising costs are expensed as incurred. Advertising costs were not material for all periods presented. | |||||||||||||
Foreign Currency Translation | Foreign Currency Translation | ||||||||||||
The functional currency of Intevac’s foreign subsidiaries in Singapore and Hong Kong and the Taiwan branch is the U.S. dollar. The functional currency of Intevac’s foreign subsidiaries in China, Malaysia and Korea is the local currency of the country in which the respective subsidiary operates. Assets and liabilities recorded in foreign currencies are translated at year-end exchange rates; revenues and expenses are translated at average exchange rates during the year. The effect of foreign currency translation adjustments are included in stockholders’ equity as a component of accumulated other comprehensive income in the accompanying consolidated balance sheets. The effects of foreign currency transactions are included in other income in the determination of net income. Net income (losses) from foreign currency transactions were $11,000, $(36,000), and $(78,000) in 2014, 2013 and 2012, respectively. | |||||||||||||
Comprehensive Income | Comprehensive Income | ||||||||||||
The changes in accumulated other comprehensive income by component, were as follows for the years ended January 3, 2015 and December 31, 2013: | |||||||||||||
Foreign | Unrealized | Total | |||||||||||
currency | holding | ||||||||||||
gains | |||||||||||||
(losses) on | |||||||||||||
available- | |||||||||||||
for-sale | |||||||||||||
investments | |||||||||||||
(in thousands) | |||||||||||||
Balance at December 31, 2012 | $ | 694 | $ | 75 | $ | 769 | |||||||
Other comprehensive loss before reclassification | (3 | ) | (41 | ) | (44 | ) | |||||||
Amounts reclassified from other comprehensive income | — | — | — | ||||||||||
Net current-period other comprehensive loss | (3 | ) | (41 | ) | (44 | ) | |||||||
Balance at December 31, 2013 | $ | 691 | $ | 34 | $ | 725 | |||||||
Other comprehensive loss before reclassification | (71 | ) | (35 | ) | (106 | ) | |||||||
Amounts reclassified from other comprehensive income | — | — | — | ||||||||||
Net current-period other comprehensive loss | (71 | ) | (35 | ) | (106 | ) | |||||||
Balance at January 3, 2015 | $ | 620 | $ | (1 | ) | $ | 619 | ||||||
Employee Stock Plans | Employee Stock Plans | ||||||||||||
Intevac has equity-based compensation plans that provide for the grant to employees of equity-based awards, including incentive or non-statutory stock options, restricted stock, stock appreciation rights, restricted stock units (“RSUs” also referred to as performance units) and performance shares. In addition, these plans provide for the grant of non-statutory stock options and RSUs to non-employee directors and consultants. Intevac also has an employee stock purchase plan, which provides Intevac’s employees with the opportunity to purchase Intevac common stock at a discount through payroll deductions. See Note 2 for a complete description of these plans and their accounting treatment. | |||||||||||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | ||||||||||||
In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15, “Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. This ASU is intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. The amendments in this ASU will be effective for Intevac in the fourth quarter of fiscal 2016, with early adoption permitted. We are currently evaluating the impact of the adoption of this accounting standard update on our consolidated financial statements. | |||||||||||||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) which provides guidance for revenue recognition. This ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets. This ASU will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. This ASU also supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition-Construction-Type and Production-Type Contracts. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under today’s guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The standard will be effective for Intevac in the first quarter of fiscal 2017 using one of two retrospective application methods. Early adoption is not permitted. We are currently evaluating the impact of the adoption of this accounting standard update on our consolidated financial statements. | |||||||||||||
In April 2014, the FASB issued authoritative guidance that raises the threshold for a disposal transaction to qualify as a discontinued operation and requires additional disclosures about discontinued operations and disposals of individually significant components that do not qualify as discontinued operations. The authoritative guidance becomes effective prospectively for Intevac in the first quarter of fiscal 2015. Early adoption is permitted, but only for disposals that have not been reported in financial statements previously issued. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Jan. 03, 2015 | |||||||||||||
Changes in Accumulated Other Comprehensive Income by Component | The changes in accumulated other comprehensive income by component, were as follows for the years ended January 3, 2015 and December 31, 2013: | ||||||||||||
Foreign | Unrealized | Total | |||||||||||
currency | holding | ||||||||||||
gains | |||||||||||||
(losses) on | |||||||||||||
available- | |||||||||||||
for-sale | |||||||||||||
investments | |||||||||||||
(in thousands) | |||||||||||||
Balance at December 31, 2012 | $ | 694 | $ | 75 | $ | 769 | |||||||
Other comprehensive loss before reclassification | (3 | ) | (41 | ) | (44 | ) | |||||||
Amounts reclassified from other comprehensive income | — | — | — | ||||||||||
Net current-period other comprehensive loss | (3 | ) | (41 | ) | (44 | ) | |||||||
Balance at December 31, 2013 | $ | 691 | $ | 34 | $ | 725 | |||||||
Other comprehensive loss before reclassification | (71 | ) | (35 | ) | (106 | ) | |||||||
Amounts reclassified from other comprehensive income | — | — | — | ||||||||||
Net current-period other comprehensive loss | (71 | ) | (35 | ) | (106 | ) | |||||||
Balance at January 3, 2015 | $ | 620 | $ | (1 | ) | $ | 619 | ||||||
EquityBased_Compensation_Table
Equity-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||||||
Effect of Recording Equity-Based Compensation | The effect of recording equity-based compensation for fiscal 2014, 2013 and 2012 was as follows (in thousands): | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Equity-based compensation by type of award: | |||||||||||||||||||||
Stock options | $ | 1,094 | $ | 984 | $ | 2,302 | |||||||||||||||
RSUs | 1,464 | 419 | 201 | ||||||||||||||||||
Employee stock purchase plan | 442 | 1,091 | 1,317 | ||||||||||||||||||
Total equity-based compensation | $ | 3,000 | $ | 2,494 | $ | 3,820 | |||||||||||||||
Tax effect on equity-based compensation | $ | — | $ | 27 | $ | 870 | |||||||||||||||
Employee Stock Options Weighted-Average Assumptions | The weighted average assumptions used in the model are outlined in the following table: | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Stock Options: | |||||||||||||||||||||
Weighted-average fair value of grants per share | $ | 3.15 | $ | 2.49 | $ | 3.82 | |||||||||||||||
Expected volatility | 52.12 | % | 56.28 | % | 63.56 | % | |||||||||||||||
Risk free interest rate | 1.39 | % | 1.09 | % | 0.73 | % | |||||||||||||||
Expected term of options (in years) | 4.38 | 4.2 | 4.6 | ||||||||||||||||||
Dividend yield | None | None | None | ||||||||||||||||||
Option Activity and Changes | A summary of the stock option activity is as follows: | ||||||||||||||||||||
Shares | Weighted | Weighted | Aggregate | ||||||||||||||||||
Average | Average | Intrinsic | |||||||||||||||||||
Exercise | Remaining | Value | |||||||||||||||||||
Price | Contractual | ||||||||||||||||||||
Term (years) | |||||||||||||||||||||
Options outstanding at December 31, 2013 | 2,637,969 | $ | 8.53 | 4.52 | $ | 2,547,939 | |||||||||||||||
Options granted | 534,985 | $ | 7.35 | ||||||||||||||||||
Options cancelled and forfeited | (397,605 | ) | $ | 10.44 | |||||||||||||||||
Options exercised | (190,414 | ) | $ | 4.98 | |||||||||||||||||
Options outstanding at January 3, 2015 | 2,584,935 | $ | 8.26 | 4.15 | $ | 1,895,817 | |||||||||||||||
Vested and expected to vest at January 3, 2015 | 2,416,921 | $ | 8.37 | 4.05 | $ | 1,749,778 | |||||||||||||||
Options exercisable at January 3, 2015 | 1,470,523 | $ | 9.41 | 3.18 | $ | 945,484 | |||||||||||||||
Options Outstanding and Currently Exercisable | The options outstanding and currently exercisable at January 3, 2015 were in the following exercise price ranges: | ||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||
Range of Exercise Prices | Number of | Weighted | Weighted | Number | Weighted | ||||||||||||||||
Shares | Average | Average | Vested and | Average | |||||||||||||||||
Outstanding | Remaining | Exercise Price | Exercisable | Exercise Price | |||||||||||||||||
Contractual | |||||||||||||||||||||
Term (years) | |||||||||||||||||||||
$3.91 - $ 6.55 | 896,836 | 4.65 | $ | 5.4 | 389,359 | $ | 5.03 | ||||||||||||||
$6.63 - $8.24 | 876,474 | 4.71 | $ | 7.42 | 359,924 | $ | 7.6 | ||||||||||||||
$8.43 - $22.40 | 811,625 | 3 | $ | 12.32 | 721,240 | $ | 12.68 | ||||||||||||||
$3.91 - $22.40 | 2,584,935 | 4.15 | $ | 8.26 | 1,470,523 | $ | 9.41 | ||||||||||||||
Summary of Restricted Stock Units Activity | A summary of the RSU activity is as follows: | ||||||||||||||||||||
Shares | Weighted | Weighted | Aggregate | ||||||||||||||||||
Average | Average | Intrinsic | |||||||||||||||||||
Grant | Remaining | Value | |||||||||||||||||||
Date | Contractual | ||||||||||||||||||||
Fair Value | Term (years) | ||||||||||||||||||||
Non-vested RSUs at December 31, 2013 | 237,859 | $ | 5.34 | 1.8 | $ | 1,767,293 | |||||||||||||||
Granted | 277,498 | $ | 7.3 | ||||||||||||||||||
Vested | (71,856 | ) | $ | 5.39 | |||||||||||||||||
Cancelled | (93,072 | ) | $ | 6.31 | |||||||||||||||||
Non-vested RSUs at January 3, 2015 | 350,429 | $ | 6.62 | 1.56 | $ | 2,586,166 | |||||||||||||||
Employee Stock Purchase Rights Weighted-Average Assumptions | The fair value of the employee stock purchase right is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions: | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Stock Purchase Rights: | |||||||||||||||||||||
Weighted-average fair value of grants per share | $ | 2.08 | $ | 1.63 | $ | 3.01 | |||||||||||||||
Expected volatility | 44 | % | 51.54 | % | 62.36 | % | |||||||||||||||
Risk free interest rate | 0.11 | % | 0.26 | % | 0.28 | % | |||||||||||||||
Expected term of purchase rights (in years) | 0.69 | 1.77 | 1.68 | ||||||||||||||||||
Dividend yield | None | None | None | ||||||||||||||||||
Employee Stock Purchase Plan Activity | The ESPP activity during fiscal 2014, 2013 and 2012 is as follows: | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||||||
Shares purchased | 444 | 457 | 301 | ||||||||||||||||||
Weighted average purchase price per share | $ | 3.63 | $ | 3.58 | $ | 5.73 | |||||||||||||||
Aggregate intrinsic value of purchase rights exercised | $ | 1,444 | $ | 745 | $ | 304 |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||
Jan. 03, 2015 | |||||||||||||
Computation of Basic and Diluted Income (Loss) Per Share | The following table sets forth the computation of basic and diluted loss per share: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands, except per share amounts) | |||||||||||||
Net loss | $ | (27,445 | ) | $ | (15,696 | ) | $ | (55,319 | ) | ||||
Weighted-average shares – basic | 23,671 | 23,832 | 23,336 | ||||||||||
Effect of dilutive potential common shares | — | — | — | ||||||||||
Weighted-average shares – diluted | 23,671 | 23,832 | 23,336 | ||||||||||
Net loss per share – basic and diluted | $ | (1.16 | ) | $ | (0.66 | ) | $ | (2.37 | ) | ||||
Antidilutive shares based on employee awards excluded | 2,113 | 2,579 | 3,008 | ||||||||||
Concentrations_Tables
Concentrations (Tables) | 12 Months Ended | ||||||||||||
Jan. 03, 2015 | |||||||||||||
Accounts Receivable | |||||||||||||
Customers that Accounted for at Least Ten percent of Accounts Receivable/Consolidated Net Revenues | The following customers accounted for at least 10 percent of Intevac’s accounts receivable at January 3, 2015 and December 31, 2013. | ||||||||||||
2014 | 2013 | ||||||||||||
Seagate Technology | 46 | % | 40 | % | |||||||||
U.S. Government | 13 | % | * | ||||||||||
Northrop Grumman | * | 11 | % | ||||||||||
* | Less than 10% | ||||||||||||
Sales Revenue Net | |||||||||||||
Customers that Accounted for at Least Ten percent of Accounts Receivable/Consolidated Net Revenues | The following customers accounted for at least 10 percent of Intevac’s consolidated net revenues in fiscal 2014, 2013, and 2012. | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
U.S. Government | 32 | % | * | 10 | % | ||||||||
HGST | 17 | % | * | * | |||||||||
Seagate Technology | 15 | % | 37 | % | 51 | % | |||||||
Northrop Grumman | * | 11 | % | * | |||||||||
* | Less than 10% |
Balance_Sheet_Details_Tables
Balance Sheet Details (Tables) | 12 Months Ended | ||||||||||||
Jan. 03, 2015 | |||||||||||||
Components of Receivables | Receivables consisted of the following components: | ||||||||||||
January 3, | December 31, | ||||||||||||
2015 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Trade receivables and other | $ | 10,548 | $ | 12,043 | |||||||||
Unbilled costs and accrued profits | 1,539 | 2,994 | |||||||||||
Less: allowance for doubtful accounts | — | — | |||||||||||
$ | 12,087 | $ | 15,037 | ||||||||||
Reconciliation of Allowance for Doubtful Accounts | The following table represents a reconciliation of the allowance for doubtful accounts for fiscal 2014, 2013 and 2012: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Opening balance | $ | — | $ | — | $ | 41 | |||||||
Bad debt expense | — | — | 3,017 | ||||||||||
Write-offs | — | — | (3,058 | ) | |||||||||
Closing balance | $ | — | $ | — | $ | — | |||||||
Summary of Inventories | Inventories are stated at the lower of average cost or market and consist of the following: | ||||||||||||
January 3, | December 31, | ||||||||||||
2015 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Raw materials | $ | 10,684 | $ | 13,005 | |||||||||
Work-in-progress | 2,299 | 8,196 | |||||||||||
Finished goods | 6,229 | 1,561 | |||||||||||
$ | 19,212 | $ | 22,762 | ||||||||||
Property Plant and Equipment | Property, Plant and Equipment | ||||||||||||
January 3, | December 31, | ||||||||||||
2015 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Leasehold improvements | $ | 15,245 | $ | 15,090 | |||||||||
Machinery and equipment | 43,141 | 39,938 | |||||||||||
58,386 | 55,028 | ||||||||||||
Less accumulated depreciation and amortization | 45,560 | 42,083 | |||||||||||
Total property, plant and equipment, net | $ | 12,826 | $ | 12,945 | |||||||||
Other Accrued Liabilities | Other Accrued Liabilities | ||||||||||||
January 3, | December 31, | ||||||||||||
2015 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Deferred revenue | $ | 4,260 | $ | 496 | |||||||||
Payable for pending purchase of available-for-sale marketable securities | 2,059 | — | |||||||||||
Accrued product warranties | 1,022 | 1,546 | |||||||||||
Other taxes payable | 277 | 551 | |||||||||||
Acquisition-related contingent consideration | 59 | 164 | |||||||||||
Other | 595 | 506 | |||||||||||
Total other accrued liabilities | $ | 8,272 | $ | 3,263 | |||||||||
Other Long Term Liabilities | Other Long-Term Liabilities | ||||||||||||
January 3, | December 31, | ||||||||||||
2015 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Acquisition-related contingent consideration | $ | 1,075 | $ | 1,220 | |||||||||
Deferred rent | 861 | — | |||||||||||
Accrued product warranties | 164 | 101 | |||||||||||
Accrued income taxes | 100 | 394 | |||||||||||
Total other long-term liabilities | $ | 2,200 | $ | 1,715 | |||||||||
Goodwill_and_Purchased_Intangi1
Goodwill and Purchased Intangible Assets, Net (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||||||||||
Information Regarding Other Acquisition Related Intangible Assets | Information regarding acquisition-related intangible assets is as follows: | ||||||||||||||||||||||||
January 3, 2015 | December 31, 2013 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | ||||||||||||||||||||
Amount | Amount | Amount | Amount | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Customer relationships | $ | 3,119 | $ | 2,426 | $ | 693 | $ | 3,119 | $ | 2,206 | $ | 913 | |||||||||||||
Purchased technology | 5,148 | 1,875 | 3,273 | 5,148 | 1,159 | 3,989 | |||||||||||||||||||
Covenants not to compete | 40 | 40 | — | 40 | 40 | — | |||||||||||||||||||
Backlog | 80 | 80 | — | 80 | 80 | — | |||||||||||||||||||
Total amortizable intangible assets | $ | 8,387 | $ | 4,421 | $ | 3,966 | $ | 8,387 | $ | 3,485 | $ | 4,902 | |||||||||||||
Estimated Future Amortization Expense Related to Finite-Lived Purchased Intangible Assets | Estimated future amortization expense related to finite-lived purchased intangible assets as of January 3, 2015, is as follows. | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
2015 | $ | 853 | |||||||||||||||||||||||
2016 | 853 | ||||||||||||||||||||||||
2017 | 756 | ||||||||||||||||||||||||
2018 | 615 | ||||||||||||||||||||||||
2019 | 615 | ||||||||||||||||||||||||
Thereafter | 274 | ||||||||||||||||||||||||
$ | 3,966 | ||||||||||||||||||||||||
Contingent_Consideration_Table
Contingent Consideration (Tables) | 12 Months Ended | ||||||||||||
Jan. 03, 2015 | |||||||||||||
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 January 3, 2015. Significant increases or decreases in any of these inputs even in isolation would result in a significantly lower (higher) fair value measurement. | ||||||||||||
Quantitative Information about Level 3 Fair Value Measurements at January 3, 2015 | |||||||||||||
Fair Value | Valuation Technique | Unobservable Input | Range (Weighted Average) | ||||||||||
(in thousands, except for percentages) | |||||||||||||
Revenue Earnout | $ | 1,134 | Discounted cash flow | Weighted average cost of capital | 15.60% | ||||||||
Probability weighting of | 20.0% - 55.0% (36.5%) | ||||||||||||
achieving revenue forecasts | |||||||||||||
Reconciliation of Change in Fair Value Measurement of Contingent Consideration Liability | The following table represents a reconciliation of the change in the fair value measurement of the contingent consideration liability for fiscal 2014, 2013 and 2012: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Beginning balance | $ | 1,384 | $ | 5,151 | $ | 8,715 | |||||||
Changes in fair value | (250 | ) | (3,727 | ) | (219 | ) | |||||||
Cash payments made | — | (40 | ) | (3,345 | ) | ||||||||
Ending balance | $ | 1,134 | $ | 1,384 | $ | 5,151 | |||||||
Divestitures_Tables
Divestitures (Tables) | 12 Months Ended | ||||
Jan. 03, 2015 | |||||
DeltaNu | |||||
Summary of Components of Gain (Loss) | The following table summarizes the components of the loss (in thousands): | ||||
Cash proceeds | $ | 500 | |||
Assets sold: | |||||
Accounts receivable | 147 | ||||
Inventories | 320 | ||||
Other current assets | 27 | ||||
Property, plant and equipment | 159 | ||||
Trade name | 90 | ||||
Total assets sold | 743 | ||||
Liabilities divested: | |||||
Accounts payable | 59 | ||||
Other accrued expenses | 6 | ||||
Total liabilities divested | 65 | ||||
Transaction and other costs | 30 | ||||
Loss on sale | $ | (208 | ) | ||
Mainframe Technology | |||||
Summary of Components of Gain (Loss) | The following table summarizes the components of the gain (in thousands): | ||||
Cash proceeds | $ | 3,000 | |||
Assets sold: | |||||
Inventories | 589 | ||||
Property, plant and equipment | 178 | ||||
Transaction and other costs | 26 | ||||
Gain on sale | $ | 2,207 | |||
Financial_Instruments_Tables
Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||||||||||||||||||||||||||
Cash, Cash Equivalents and Short-Term Investments and Long-Term Investments | Cash and cash equivalents, short-term investments and long-term investments consist of: | ||||||||||||||||||||||||||||||||||||||||
January 3, 2015 | |||||||||||||||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||||||||||||||||||
Cost | Holding | Holding | Value | ||||||||||||||||||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||||||||||||||||||||||
Cash | $ | 4,948 | $ | — | $ | — | $ | 4,948 | |||||||||||||||||||||||||||||||||
Money market funds | 16,534 | — | — | 16,534 | |||||||||||||||||||||||||||||||||||||
Total cash and cash equivalents | $ | 21,482 | $ | — | $ | — | $ | 21,482 | |||||||||||||||||||||||||||||||||
Short-term investments: | |||||||||||||||||||||||||||||||||||||||||
Commercial paper | $ | 2,995 | $ | 2 | $ | — | $ | 2,997 | |||||||||||||||||||||||||||||||||
Corporate bonds and medium-term notes | 21,203 | 2 | 6 | 21,199 | |||||||||||||||||||||||||||||||||||||
Municipal bonds | 5,392 | 11 | 1 | 5,402 | |||||||||||||||||||||||||||||||||||||
Total short-term investments | $ | 29,590 | $ | 15 | $ | 7 | $ | 29,598 | |||||||||||||||||||||||||||||||||
Long-term investments: | |||||||||||||||||||||||||||||||||||||||||
Corporate bonds and medium-term notes | $ | 6,266 | $ | 1 | $ | 4 | $ | 6,263 | |||||||||||||||||||||||||||||||||
Municipal bonds | 2,290 | — | 8 | 2,282 | |||||||||||||||||||||||||||||||||||||
U.S. treasury and agency securities | 8,995 | 3 | 1 | 8,997 | |||||||||||||||||||||||||||||||||||||
Total long-term investments | $ | 17,551 | $ | 4 | $ | 13 | $ | 17,542 | |||||||||||||||||||||||||||||||||
Total cash, cash equivalents, and investments | $ | 68,623 | $ | 19 | $ | 20 | $ | 68,622 | |||||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||||||||||||||||||
Cost | Holding | Holding | Value | ||||||||||||||||||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||||||||||||||||||||||
Cash | $ | 5,819 | $ | — | $ | — | $ | 5,819 | |||||||||||||||||||||||||||||||||
Money market funds | 14,302 | — | — | 14,302 | |||||||||||||||||||||||||||||||||||||
Total cash and cash equivalents | $ | 20,121 | $ | — | $ | — | $ | 20,121 | |||||||||||||||||||||||||||||||||
Short-term investments: | |||||||||||||||||||||||||||||||||||||||||
Commercial paper | $ | 1,998 | $ | 1 | $ | — | $ | 1,999 | |||||||||||||||||||||||||||||||||
Corporate bonds and medium-term notes | 27,181 | 13 | 3 | 27,191 | |||||||||||||||||||||||||||||||||||||
Municipal bonds | 6,108 | 4 | — | 6,112 | |||||||||||||||||||||||||||||||||||||
U.S. treasury and agency securities | 13,506 | 7 | — | 13,513 | |||||||||||||||||||||||||||||||||||||
VRDNs | 160 | — | — | 160 | |||||||||||||||||||||||||||||||||||||
Total short-term investments | $ | 48,953 | $ | 25 | $ | 3 | $ | 48,975 | |||||||||||||||||||||||||||||||||
Long-term investments: | |||||||||||||||||||||||||||||||||||||||||
Corporate bonds and medium-term notes | $ | 8,811 | $ | 12 | $ | — | $ | 8,823 | |||||||||||||||||||||||||||||||||
Municipal bonds | 3,495 | 2 | 2 | 3,495 | |||||||||||||||||||||||||||||||||||||
Total long-term investments | $ | 12,306 | $ | 14 | $ | 2 | $ | 12,318 | |||||||||||||||||||||||||||||||||
Total cash, cash equivalents, and investments | $ | 81,380 | $ | 39 | $ | 5 | $ | 81,414 | |||||||||||||||||||||||||||||||||
Contractual Maturities of Available-for-Sale Securities | The contractual maturities of available-for-sale securities at January 3, 2015 are presented in the following table. | ||||||||||||||||||||||||||||||||||||||||
Amortized | Fair | ||||||||||||||||||||||||||||||||||||||||
Cost | Value | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 45,121 | $ | 45,129 | |||||||||||||||||||||||||||||||||||||
Due after one through two years | 18,554 | 18,545 | |||||||||||||||||||||||||||||||||||||||
$ | 63,675 | $ | 63,674 | ||||||||||||||||||||||||||||||||||||||
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 January 3, 2015. | ||||||||||||||||||||||||||||||||||||||||
January 3, 2015 | |||||||||||||||||||||||||||||||||||||||||
In Loss Position for | In Loss Position for | ||||||||||||||||||||||||||||||||||||||||
Less than 12 Months | Greater than | ||||||||||||||||||||||||||||||||||||||||
12 Months | |||||||||||||||||||||||||||||||||||||||||
Fair | Gross | Fair | Gross | ||||||||||||||||||||||||||||||||||||||
Value | Unrealized | Value | Unrealized | ||||||||||||||||||||||||||||||||||||||
Losses | Losses | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||
Corporate bonds and medium-term notes | $ | 15,869 | $ | 10 | $ | — | $ | — | |||||||||||||||||||||||||||||||||
Municipal bonds | 3,281 | 9 | — | — | |||||||||||||||||||||||||||||||||||||
U.S. treasury and agency securities | 1,999 | 1 | — | — | |||||||||||||||||||||||||||||||||||||
$ | 21,149 | $ | 20 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||
Fair Value Hierarchy of Available-for-Sale Securities Measured at Fair Value on Recurring Basis | The following table represents the fair value hierarchy of Intevac’s available-for-sale securities measured at fair value on a recurring basis as of January 3, 2015. | ||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||||||||||||||||||||
at January 3, 2015 | |||||||||||||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | |||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||
Recurring fair value measurements: | |||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||||||||||||||||||||||
Money market funds | $ | 16,534 | $ | 16,534 | $ | — | |||||||||||||||||||||||||||||||||||
U.S. treasury and agency securities | 8,997 | 6,997 | 2,000 | ||||||||||||||||||||||||||||||||||||||
Commercial paper | 2,997 | — | 2,997 | ||||||||||||||||||||||||||||||||||||||
Corporate bonds and medium-term notes | 27,462 | — | 27,462 | ||||||||||||||||||||||||||||||||||||||
Municipal bonds | 7,684 | — | 7,684 | ||||||||||||||||||||||||||||||||||||||
Total recurring fair value measurements | $ | 63,674 | $ | 23,531 | $ | 40,143 | |||||||||||||||||||||||||||||||||||
Changes in Level Three Instruments Consisting of Auction Rate Securities Classified As Available-for-Sale Securities and Measured on Recurring Basis | The following table presents the changes in Level 3 instruments which consisted of ARS which were classified as available-for-sale securities and which were measured on a recurring basis for the year ended December 31, 2012. The Company did not hold any ARS as of or during the year ended January 3, 2015. | ||||||||||||||||||||||||||||||||||||||||
2012 | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||
Opening balance | $ | 4,490 | |||||||||||||||||||||||||||||||||||||||
Total gains (losses) for the period | |||||||||||||||||||||||||||||||||||||||||
Included in earnings | (381 | ) | |||||||||||||||||||||||||||||||||||||||
Included in other comprehensive income | 410 | ||||||||||||||||||||||||||||||||||||||||
Proceeds from sales | (1,748 | ) | |||||||||||||||||||||||||||||||||||||||
Proceeds from tender offers | (2,771 | ) | |||||||||||||||||||||||||||||||||||||||
Closing balance | $ | — | |||||||||||||||||||||||||||||||||||||||
Summary of Outstanding Derivative Instruments on Gross Basis as Recorded in Consolidated Balance Sheets | The following table summarizes the Company’s outstanding derivative instruments on a gross basis as recorded in its consolidated balance sheets as of January 3, 2015 and December 31, 2013: | ||||||||||||||||||||||||||||||||||||||||
Notional Amounts | Derivative Assets | Derivative Liabilities | |||||||||||||||||||||||||||||||||||||||
Derivative Instrument | January 3, | December 31, | January 3, | December 31, | January 3, | December 31, | |||||||||||||||||||||||||||||||||||
2015 | 2013 | 2015 | 2013 | 2015 | 2013 | ||||||||||||||||||||||||||||||||||||
Balance | Fair | Balance | Fair | Balance | Fair | Balance | Fair | ||||||||||||||||||||||||||||||||||
Sheet | Value | Sheet | Value | Sheet | Value | Sheet | Value | ||||||||||||||||||||||||||||||||||
Line | Line | Line | Line | ||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||
Undesignated Hedges: | |||||||||||||||||||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 2,647 | $ | 894 | (a | ) | $ | 10 | — | $ | — | (b | ) | $ | 4 | — | $ | — | |||||||||||||||||||||||
Total Hedges | $ | 2,647 | $ | 894 | $ | 10 | $ | — | $ | 4 | $ | — | |||||||||||||||||||||||||||||
(a) | Prepaid expenses and other current assets | ||||||||||||||||||||||||||||||||||||||||
(b) | Other accrued liabilities |
Equity_Tables
Equity (Tables) | 12 Months Ended | ||||||||||||
Jan. 03, 2015 | |||||||||||||
Stock Repurchases | The following table summarizes Intevac’s stock repurchases for fiscal 2014, 2013 and 2012: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands, except per share amounts) | |||||||||||||
Shares of common stock repurchased | 1,185 | 241 | — | ||||||||||
Cost of stock repurchased | $ | 8,302 | $ | 1,688 | $ | — | |||||||
Average price paid per share | $ | 6.97 | $ | 6.97 | $ | — |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Jan. 03, 2015 | |||||||||||||
Provision for (Benefit from) Income Taxes | The provision for (benefit from) income taxes on loss from continuing operations for fiscal 2014, 2013 and 2012 consists of the following (in thousands): | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Federal: | |||||||||||||
Current | $ | (324 | ) | $ | (3,925 | ) | $ | 3 | |||||
Deferred | — | 3,387 | 17,160 | ||||||||||
(324 | ) | (538 | ) | 17,163 | |||||||||
State: | |||||||||||||
Current | 5 | 12 | (13 | ) | |||||||||
Deferred | — | — | — | ||||||||||
5 | 12 | (13 | ) | ||||||||||
Foreign: | |||||||||||||
Current | 81 | (38 | ) | (150 | ) | ||||||||
Deferred | 8,666 | (1,158 | ) | (3,760 | ) | ||||||||
8,747 | (1,196 | ) | (3,910 | ) | |||||||||
Total | $ | 8,428 | $ | (1,722 | ) | $ | 13,240 | ||||||
Loss Before Income Taxes (Benefit) | Loss before income taxes (benefit) for fiscal 2014, 2013 and 2012 consisted of the following (in thousands): | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
U.S | $ | (13,191 | ) | $ | (11,478 | ) | $ | (32,128 | ) | ||||
Foreign | (5,826 | ) | (5,940 | ) | (9,951 | ) | |||||||
$ | (19,017 | ) | $ | (17,418 | ) | $ | (42,079 | ) | |||||
Effective tax rate | (44.3 | )% | 9.9 | % | (31.5 | )% | |||||||
Significant Components of Deferred Tax Assets | Significant components of deferred tax assets are as follows (in thousands): | ||||||||||||
January 3, | December 31, | ||||||||||||
2015 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Vacation, warranty and other accruals | $ | 997 | $ | 1,269 | |||||||||
Depreciation and amortization | 538 | 1,554 | |||||||||||
Intangible amortization | 2,767 | 3,235 | |||||||||||
Inventory valuation | 3,117 | 1,706 | |||||||||||
Deferred income | 1,621 | 43 | |||||||||||
Equity-based compensation | 5,920 | 6,242 | |||||||||||
Net operating loss, research and other tax credit carryforwards | 47,044 | 43,470 | |||||||||||
Other | 358 | 49 | |||||||||||
62,362 | 57,568 | ||||||||||||
Valuation allowance for deferred tax assets | (60,612 | ) | (46,126 | ) | |||||||||
Total deferred tax assets | 1,750 | 11,442 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Purchased technology | (1,195 | ) | (1,488 | ) | |||||||||
Unbilled revenue | (555 | ) | (1,004 | ) | |||||||||
Other | — | (284 | ) | ||||||||||
Total deferred tax liabilities | (1,750 | ) | (2,776 | ) | |||||||||
Net deferred tax assets | $ | — | $ | 8,666 | |||||||||
As reported on the balance sheet: | |||||||||||||
Current deferred tax assets | $ | — | $ | 103 | |||||||||
Non-current deferred tax assets | 5 | 9,502 | |||||||||||
Current deferred tax liability | (5 | ) | (939 | ) | |||||||||
$ | — | $ | 8,666 | ||||||||||
Difference Between Tax Provision (Benefit) at Statutory Federal Income Tax Rate and Tax Provision | The difference between the tax provision (benefit) at the statutory federal income tax rate and the tax provision (benefit) for fiscal 2014, 2013 and 2012 was as follows (in thousands): | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Income tax (benefit) at the federal statutory rate | $ | (6,656 | ) | $ | (6,096 | ) | $ | (14,728 | ) | ||||
State income taxes, net of federal benefit | 5 | 12 | (15 | ) | |||||||||
Change in valuation allowance: | |||||||||||||
U.S | 4,733 | 7,201 | 23,330 | ||||||||||
Foreign | 9,394 | — | — | ||||||||||
Effect of foreign operations taxed at various rates | 1,662 | 983 | (428 | ) | |||||||||
Nondeductible goodwill impairment | — | — | 3,670 | ||||||||||
Research tax credits | (569 | ) | (2,284 | ) | — | ||||||||
Effect of tax rate changes, permanent differences and adjustments of prior deferrals | 153 | (1,062 | ) | 367 | |||||||||
Unrecognized tax benefits | (294 | ) | (476 | ) | 1,044 | ||||||||
Total | $ | 8,428 | $ | (1,722 | ) | $ | 13,240 | ||||||
Aggregate Changes in Balance of Gross Unrecognized Tax Benefits | The aggregate changes in the balance of gross unrecognized tax benefits were as follows for fiscal 2014, 2013 and 2012: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Beginning balance | $ | 6,482 | $ | 6,000 | $ | 5,022 | |||||||
Additions based on tax positions related to the current year | 57 | 597 | 978 | ||||||||||
Additions for tax positions of prior years | 250 | 98 | — | ||||||||||
Settlements | — | — | — | ||||||||||
Lapse of statute of limitations | (211 | ) | (213 | ) | — | ||||||||
Ending balance | $ | 6,578 | $ | 6,482 | $ | 6,000 | |||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||
Jan. 03, 2015 | |||||||||
Future Minimum Lease Payments | As of January 3, 2015, future minimum lease payments are as follows. | ||||||||
(in thousands) | |||||||||
2015 | $ | 3,206 | |||||||
2016 | 3,075 | ||||||||
2017 | 2,640 | ||||||||
2018 | 2,630 | ||||||||
2019 | 2,709 | ||||||||
Thereafter | 12,440 | ||||||||
$ | 26,700 | ||||||||
Activity in Warranty Provision Account | The following table displays the activity in the warranty provision account for fiscal 2014 and 2013: | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Beginning balance | $ | 1,647 | $ | 2,349 | |||||
Expenditures incurred under warranties | (834 | ) | (1,033 | ) | |||||
Accruals for product warranties | 931 | 1,091 | |||||||
Adjustments to previously existing warranty accruals | (558 | ) | (760 | ) | |||||
Ending balance | $ | 1,186 | $ | 1,647 | |||||
Segment_and_Geographic_Informa1
Segment and Geographic Information (Tables) | 12 Months Ended | ||||||||||||
Jan. 03, 2015 | |||||||||||||
Information for Each Reportable Segment | Information for each reportable segment for fiscal 2014, 2013 and 2012 is as follows: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Net Revenues | |||||||||||||
Equipment | $ | 25,290 | $ | 39,135 | $ | 52,538 | |||||||
Photonics | 40,260 | 30,497 | 30,886 | ||||||||||
Total segment net revenues | $ | 65,550 | $ | 69,632 | $ | 83,424 | |||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Operating Profit (Loss) | |||||||||||||
Equipment | $ | (22,008 | ) | $ | (12,951 | ) | $ | (19,934 | ) | ||||
Photonics | 8,932 | 1,058 | (206 | ) | |||||||||
Total segment operating profit (loss) | (13,076 | ) | (11,893 | ) | (20,140 | ) | |||||||
Unallocated costs | (6,278 | ) | (5,722 | ) | (6,181 | ) | |||||||
Impairment of goodwill and intangible assets | — | — | (18,419 | ) | |||||||||
Gain (loss) on divestitures | — | (208 | ) | 2,207 | |||||||||
Operating loss | (19,354 | ) | (17,823 | ) | (42,533 | ) | |||||||
Interest income | 179 | 279 | 806 | ||||||||||
Other income (expense), net | 158 | 126 | (352 | ) | |||||||||
Loss before income taxes | $ | (19,017 | ) | $ | (17,418 | ) | $ | (42,079 | ) | ||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Depreciation and Amortization | |||||||||||||
Equipment | $ | 2,379 | $ | 2,146 | $ | 2,003 | |||||||
Photonics | 1,834 | 1,900 | 1,806 | ||||||||||
Total segment depreciation and amortization | 4,213 | 4,046 | 3,809 | ||||||||||
Unallocated costs | 492 | 472 | 670 | ||||||||||
Total consolidated depreciation and amortization | $ | 4,705 | $ | 4,518 | $ | 4,479 | |||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Capital Additions | |||||||||||||
Equipment | $ | 2,230 | $ | 1,857 | $ | 1,260 | |||||||
Photonics | 1,203 | 894 | 1,535 | ||||||||||
Total segment capital additions | 3,433 | 2,751 | 2,795 | ||||||||||
Unallocated | 272 | 572 | 485 | ||||||||||
Total consolidated capital additions | $ | 3,705 | $ | 3,323 | $ | 3,280 | |||||||
Segment Assets | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Segment Assets | |||||||||||||
Equipment | $ | 30,670 | $ | 33,428 | |||||||||
Photonics | 17,126 | 21,120 | |||||||||||
Total segment assets | 47,796 | 54,548 | |||||||||||
Cash and investments | 68,622 | 81,414 | |||||||||||
Restricted cash | 1,780 | — | |||||||||||
Deferred income taxes | 5 | 9,605 | |||||||||||
Other current assets | 989 | 982 | |||||||||||
Common property, plant and equipment | 1,083 | 1,302 | |||||||||||
Other assets | — | 425 | |||||||||||
Consolidated total assets | $ | 120,275 | $ | 148,276 | |||||||||
Revenue by Geographic Region/Country | Geographic revenue information for fiscal 2014, 2013 and 2012 is based on the location of the customer. Revenue from unaffiliated customers by geographic region/country was as follows: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
United States | $ | 51,584 | $ | 32,534 | $ | 30,845 | |||||||
Asia (*) | 9,931 | 31,907 | 47,712 | ||||||||||
Europe | 4,035 | 5,191 | 3,795 | ||||||||||
Rest of world | — | — | 1,072 | ||||||||||
Total net revenues | $ | 65,550 | $ | 69,632 | $ | 83,424 | |||||||
(*) | Revenues are attributable to the geographic area in which Intevac’s customers are located. Net trade revenues in Asia include shipments to Singapore, China, Japan and Malaysia. | ||||||||||||
Net Property, Plant and Equipment by Geographic Region | Net property, plant and equipment by geographic region at January 3, 2015 and December 31, 2013 was as follows: | ||||||||||||
January 3, | December 31, | ||||||||||||
2015 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
United States | $ | 11,534 | $ | 11,240 | |||||||||
Asia | 1,292 | 1,705 | |||||||||||
Net property, plant & equipment | $ | 12,826 | $ | 12,945 | |||||||||
Restructuring_Charges_Tables
Restructuring Charges (Tables) | 12 Months Ended | ||||||||
Jan. 03, 2015 | |||||||||
Changes in Restructuring Reserves | The changes in restructuring reserves associated with the Plan for fiscal 2014 and 2013, are as follows. | ||||||||
Severance and | |||||||||
other employee- | |||||||||
related costs | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Balance at the beginning of the year | $ | — | $ | — | |||||
Provision for restructuring charges | 288 | 742 | |||||||
Cash payments made | (288 | ) | (742 | ) | |||||
Balance at the end of the year | $ | — | $ | — | |||||
Selected_Quarterly_Consolidate1
Selected Quarterly Consolidated Financial Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||
Selected Quarterly Consolidated Financial Data | |||||||||||||||||
Three Months Ended | |||||||||||||||||
March 29, | June 28, | Sept. 27, | Jan. 03, | ||||||||||||||
2014 | 2014 | 2014 | 2015 | ||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
Net sales | $ | 17,015 | $ | 14,715 | $ | 14,757 | $ | 19,062 | |||||||||
Gross profit | 4,810 | 5,211 | 4,815 | 2,596 | |||||||||||||
Net loss | (4,521 | ) | (5,007 | ) | (3,559 | ) | (14,358 | ) | |||||||||
Basic and diluted loss per share | $ | (0.19 | ) | $ | (0.21 | ) | $ | (0.15 | ) | $ | (0.62 | ) | |||||
Three Months Ended | |||||||||||||||||
March 30, | June 29, | Sept. 28, | Dec. 31, | ||||||||||||||
2013 | 2013 | 2013 | 2013 | ||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
Net sales | $ | 12,982 | $ | 16,983 | $ | 19,115 | $ | 20,552 | |||||||||
Gross profit | 3,514 | 3,829 | 6,895 | 7,737 | |||||||||||||
Net income (loss) | (8,264 | ) | (6,412 | ) | (2,745 | ) | 1,725 | ||||||||||
Basic and diluted loss per share | $ | (0.35 | ) | $ | (0.27 | ) | $ | (0.11 | ) | $ | 0.07 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Jan. 03, 2015 | Dec. 31, 2013 | Dec. 31, 2012 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Restricted cash | $1,780,000 | ||
Net income (losses) from foreign currency transactions | 11,000 | -36,000 | -78,000 |
Pledged as Collateral for Standby Letter of Credit | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Restricted cash | 1,000,000 | ||
Collateral for Banker's Guarantee | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Restricted cash | $780,000 | ||
Minimum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Intangible assets estimated useful life | 1 year | ||
Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Intangible assets estimated useful life | 13 years | ||
Computers and Software | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives of asset | 3 years | ||
Machinery and Equipment | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives of asset | 5 years | ||
Furniture and Fixtures | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives of asset | 7 years | ||
Vehicles | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives of asset | 4 years | ||
Leasehold Improvements | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Lease and leasehold improvements estimated useful lives | Remaining lease term |
Changes_in_Accumulated_Other_C
Changes in Accumulated Other Comprehensive Income by Component (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | $725 | $769 | |
Other comprehensive loss before reclassification | -106 | -44 | |
Amounts reclassified from other comprehensive income | 0 | 0 | |
Net current-period other comprehensive loss | -106 | -44 | 355 |
Ending Balance | 619 | 725 | 769 |
Accumulated Translation Adjustment | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 691 | 694 | |
Other comprehensive loss before reclassification | -71 | -3 | |
Amounts reclassified from other comprehensive income | 0 | 0 | |
Net current-period other comprehensive loss | -71 | -3 | |
Ending Balance | 620 | 691 | |
Accumulated Net Unrealized Investment Gain (Loss) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 34 | 75 | |
Other comprehensive loss before reclassification | -35 | -41 | |
Amounts reclassified from other comprehensive income | 0 | 0 | |
Net current-period other comprehensive loss | -35 | -41 | |
Ending Balance | ($1) | $34 |
EquityBased_Compensation_Addit
Equity-Based Compensation - Additional information (Detail) (USD $) | 12 Months Ended | ||
Jan. 03, 2015 | Dec. 31, 2013 | Dec. 31, 2012 | |
EquityPlan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of option price related to fair market value | 100.00% | ||
Common stock shares authorized for further issuance | 4,900,000 | ||
2012 plan options expiration date | 8-May-22 | ||
Purchase of common stock through payroll deductions | 85.00% | ||
Offering periods | 2 years | ||
Purchase intervals of a series | 6 months | ||
Maximum employee salary withholdings for purchase of common stock under the terms of the ESPP | 15.00% | ||
Total intrinsic value of options exercised | $496,000 | $49,000 | $194,000 |
Total unrecognized compensation expense | 1,300,000 | ||
Number of outstanding stock options | 2,584,935 | 2,637,969 | |
Compensation expense | 3,000,000 | 2,494,000 | 3,820,000 |
RSU conversion ratio | 1 | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options, expiration period | 10 years | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award, vesting period | 4 years | ||
Unrecognized compensation expenses recognition period | 1 year 4 months 10 days | ||
Compensation expense | 1,094,000 | 984,000 | 2,302,000 |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award, vesting period | 4 years | ||
Unrecognized compensation expenses recognition period | 1 year 6 months 22 days | ||
Compensation expense | 1,464,000 | 419,000 | 201,000 |
Unrecognized compensation expense | 1,100,000 | ||
Employee Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available under issuance of ESPP | 400,000 | ||
Total unrecognized compensation expense | 19,000 | ||
Unrecognized compensation expenses recognition period | 3 months | ||
Stock Option Exchange Program | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of option holders exchanged options | 87 | ||
Number of stock options exchanged | 766,000 | ||
Compensation expense | 126,000 | ||
Stock Option Exchange Program | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award, vesting period | 3 years | ||
Stock Option Exchange Program | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award, vesting period | 1 year | ||
Options exercise price per share | $8.49 | ||
Minimum percentage of closing stock price for exchange to occur | 50.00% | ||
2012 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of outstanding stock options | 336,000 | ||
Annual Incentive Plan | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award, vesting period | 1 year | ||
Unrecognized compensation expenses recognition period | 8 months 9 days | ||
Compensation expense | 554,000 | ||
Unrecognized compensation expense | $623,000 |
Effect_of_Recording_EquityBase
Effect of Recording Equity-Based Compensation (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 31, 2013 | Dec. 31, 2012 |
Equity Based Compensation Related to Employee Stock Purchase Programs [Line Items] | |||
Total equity-based compensation | $3,000 | $2,494 | $3,820 |
Tax effect on equity-based compensation | 27 | 870 | |
Stock Options | |||
Equity Based Compensation Related to Employee Stock Purchase Programs [Line Items] | |||
Total equity-based compensation | 1,094 | 984 | 2,302 |
Restricted Stock Units (RSUs) | |||
Equity Based Compensation Related to Employee Stock Purchase Programs [Line Items] | |||
Total equity-based compensation | 1,464 | 419 | 201 |
ESPP awards | |||
Equity Based Compensation Related to Employee Stock Purchase Programs [Line Items] | |||
Total equity-based compensation | $442 | $1,091 | $1,317 |
WeightedAverage_Fair_Value_of_
Weighted-Average Fair Value of Stock Options and Employee Stock Purchase Rights using Weighted-Average Assumptions (Detail) (USD $) | 12 Months Ended | ||
Jan. 03, 2015 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Options | |||
Employee stock options weighted-average assumptions | |||
Weighted-average fair value of grants per share | $3.15 | $2.49 | $3.82 |
Expected volatility | 52.12% | 56.28% | 63.56% |
Risk free interest rate | 1.39% | 1.09% | 0.73% |
Expected term of options (in years) | 4 years 4 months 17 days | 4 years 2 months 12 days | 4 years 7 months 6 days |
Dividend yield | 0.00% | 0.00% | 0.00% |
Stock Purchase Rights | |||
Employee stock options weighted-average assumptions | |||
Weighted-average fair value of grants per share | $2.08 | $1.63 | $3.01 |
Expected volatility | 44.00% | 51.54% | 62.36% |
Risk free interest rate | 0.11% | 0.26% | 0.28% |
Expected term of options (in years) | 8 months 9 days | 1 year 9 months 7 days | 1 year 8 months 5 days |
Dividend yield | 0.00% | 0.00% | 0.00% |
Option_Activity_and_Changes_De
Option Activity and Changes (Detail) (USD $) | 12 Months Ended | |
Jan. 03, 2015 | Dec. 31, 2013 | |
Shares | ||
Options outstanding at December 31, 2013 | 2,637,969 | |
Options granted | 534,985 | |
Options cancelled and forfeited | -397,605 | |
Options exercised | -190,414 | |
Options outstanding at January 3, 2015 | 2,584,935 | 2,637,969 |
Vested and expected to vest at January 3, 2015 | 2,416,921 | |
Options exercisable at January 3, 2015 | 1,470,523 | |
Weighted Average Exercise Price | ||
Options outstanding at December 31, 2013 | $8.53 | |
Options granted | $7.35 | |
Options cancelled and forfeited | $10.44 | |
Options exercised | $4.98 | |
Options outstanding at January 3, 2015 | $8.26 | $8.53 |
Vested and expected to vest at January 3, 2015 | $8.37 | |
Options exercisable at January 3, 2015 | $9.41 | |
Weighted Average Remaining Contractual Term | ||
Options outstanding | 4 years 1 month 24 days | 4 years 6 months 7 days |
Vested and expected to vest at January 3, 2015 | 4 years 18 days | |
Options exercisable at January 3, 2015 | 3 years 2 months 5 days | |
Aggregate Intrinsic Value | ||
Options outstanding at December 31, 2013 | $2,547,939 | |
Options outstanding at January 3, 2015 | 1,895,817 | 2,547,939 |
Vested and expected to vest at January 3, 2015 | 1,749,778 | |
Options exercisable at January 3, 2015 | $945,484 |
Options_Outstanding_and_Curren
Options Outstanding and Currently Exercisable (Detail) (USD $) | 12 Months Ended |
Jan. 03, 2015 | |
Exercise Price Range Range One | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, minimum | $3.91 |
Range of Exercise Prices, maximum | $6.55 |
Number of Shares Outstanding | 896,836 |
Options Outstanding Weighted Average Remaining Contractual Term (In Years) | 4 years 7 months 24 days |
Weighted Average Exercise Price | $5.40 |
Number Vested and Exercisable | 389,359 |
Weighted Average Exercise Price | $5.03 |
Exercise Price Range Range Two | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, minimum | $6.63 |
Range of Exercise Prices, maximum | $8.24 |
Number of Shares Outstanding | 876,474 |
Options Outstanding Weighted Average Remaining Contractual Term (In Years) | 4 years 8 months 16 days |
Weighted Average Exercise Price | $7.42 |
Number Vested and Exercisable | 359,924 |
Weighted Average Exercise Price | $7.60 |
Exercise Price Range Range Three | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, minimum | $8.43 |
Range of Exercise Prices, maximum | $22.40 |
Number of Shares Outstanding | 811,625 |
Options Outstanding Weighted Average Remaining Contractual Term (In Years) | 3 years |
Weighted Average Exercise Price | $12.32 |
Number Vested and Exercisable | 721,240 |
Weighted Average Exercise Price | $12.68 |
Exercise Price Range Range Four | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, minimum | $3.91 |
Range of Exercise Prices, maximum | $22.40 |
Number of Shares Outstanding | 2,584,935 |
Options Outstanding Weighted Average Remaining Contractual Term (In Years) | 4 years 1 month 24 days |
Weighted Average Exercise Price | $8.26 |
Number Vested and Exercisable | 1,470,523 |
Weighted Average Exercise Price | $9.41 |
Summary_of_Restricted_Stock_Un
Summary of Restricted Stock Units Activity (Detail) (Restricted Stock Units (RSUs), USD $) | 12 Months Ended |
Jan. 03, 2015 | |
Restricted Stock Units (RSUs) | |
Shares | |
Non-vested RSUs at December 31, 2013 | 237,859 |
Granted | 277,498 |
Vested | -71,856 |
Cancelled | -93,072 |
Non-vested RSUs at January 3, 2015 | 350,429 |
Weighted Average Grant Date Fair Value | |
Non-vested RSUs at December 31, 2013 | $5.34 |
Granted | $7.30 |
Vested | $5.39 |
Cancelled | $6.31 |
Non-vested RSUs at January 3, 2015 | $6.62 |
Weighted Average Remaining Contractual Term | |
Non-vested RSUs at December 31, 2013 | 1 year 9 months 18 days |
Non-vested RSUs at January 3, 2015 | 1 year 6 months 22 days |
Aggregate Intrinsic Value | |
Non-vested RSUs at December 31, 2013 | $1,767,293 |
Non-vested RSUs at January 3, 2015 | $2,586,166 |
Employee_Stock_Purchase_Plan_A
Employee Stock Purchase Plan Activity (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jan. 03, 2015 | Dec. 31, 2013 | Dec. 31, 2012 |
Employee Stock Purchase Plan [Line Items] | |||
Shares purchased | 444 | 457 | 301 |
Weighted average purchase price per share | $3.63 | $3.58 | $5.73 |
Aggregate intrinsic value of purchase rights exercised | $1,444 | $745 | $304 |
Computation_of_Basic_and_Dilut
Computation of Basic and Diluted Income (Loss) Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 31, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Jan. 03, 2015 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule Of Computation Of Basic And Diluted Earnings Per Common Share [Line Items] | |||||||||||
Net loss | ($14,358) | ($3,559) | ($5,007) | ($4,521) | $1,725 | ($2,745) | ($6,412) | ($8,264) | ($27,445) | ($15,696) | ($55,319) |
Weighted-average shares - basic | 23,671 | 23,832 | 23,336 | ||||||||
Effect of dilutive potential common shares | 0 | 0 | 0 | ||||||||
Weighted-average shares - diluted | 23,671 | 23,832 | 23,336 | ||||||||
Net loss per share - basic and diluted | ($0.62) | ($0.15) | ($0.21) | ($0.19) | $0.07 | ($0.11) | ($0.27) | ($0.35) | ($1.16) | ($0.66) | ($2.37) |
Antidilutive shares based on employee awards excluded | 2,113 | 2,579 | 3,008 |
Customers_That_Accounted_for_a
Customers That Accounted for at Least Ten percent of Accounts Receivable (Detail) (Accounts Receivable, Credit Concentration Risk) | 12 Months Ended | |||
Jan. 03, 2015 | Dec. 31, 2013 | |||
Seagate Technology | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 46.00% | 40.00% | ||
U.S. Government | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 13.00% | [1] | ||
Northrop Grumman Corporation | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | [1] | 11.00% | ||
[1] | Less than 10% |
Customers_That_Accounted_for_a1
Customers That Accounted for at Least Ten percent of Consolidated Net Revenues (Detail) (Sales Revenue Net, Customer Concentration Risk [Member]) | 12 Months Ended | |||||
Jan. 03, 2015 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
U.S. Government | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, percentage | 32.00% | [1] | 10.00% | |||
HGST | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, percentage | 17.00% | [1] | [1] | |||
Seagate Technology | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, percentage | 15.00% | 37.00% | 51.00% | |||
Northrop Grumman Corporation | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, percentage | [1] | 11.00% | [1] | |||
[1] | Less than 10% |
Components_of_Receivables_Deta
Components of Receivables (Detail) (USD $) | Jan. 03, 2015 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts and Other Receivables [Line Items] | ||
Trade receivables and other | $10,548 | $12,043 |
Unbilled costs and accrued profits | 1,539 | 2,994 |
Less: allowance for doubtful accounts | 0 | 0 |
Trade and other accounts receivable, net of allowances of $0 at both January 3, 2015 and December 31, 2013 . | $12,087 | $15,037 |
Reconciliation_of_Allowance_fo
Reconciliation of Allowance for Doubtful Accounts (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2012 |
Provisions for Doubtful Accounts [Line Items] | |
Opening balance | $41 |
Bad debt expense | 3,017 |
Write-offs | ($3,058) |
Inventories_Stated_at_Lower_of
Inventories Stated at Lower of Average Cost or Market (Detail) (USD $) | Jan. 03, 2015 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory [Line Items] | ||
Raw materials | $10,684 | $13,005 |
Work-in-progress | 2,299 | 8,196 |
Finished goods | 6,229 | 1,561 |
Inventories | $19,212 | $22,762 |
Property_Plant_and_Equipment_D
Property Plant and Equipment (Detail) (USD $) | Jan. 03, 2015 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment | $58,386 | $55,028 |
Less accumulated depreciation and amortization | 45,560 | 42,083 |
Total property, plant and equipment, net | 12,826 | 12,945 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment | 15,245 | 15,090 |
Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment | $43,141 | $39,938 |
Balance_Sheet_Details_Addition
Balance Sheet Details - Additional Information (Detail) (USD $) | Jan. 03, 2015 | Dec. 31, 2013 |
Balance Sheet Details [Line Items] | ||
Customer advances | $2,400,000 | $1,100,000 |
Accounts payable, book overdraft | $254,000 | $325,000 |
Other_Accrued_Liabilities_Deta
Other Accrued Liabilities (Detail) (USD $) | Jan. 03, 2015 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accrued Liabilities [Line Items] | ||
Deferred revenue | $4,260 | $496 |
Payable for pending purchase of available-for-sale marketable securities | 2,059 | |
Accrued product warranties | 1,022 | 1,546 |
Other taxes payable | 277 | 551 |
Acquisition-related contingent consideration | 59 | 164 |
Other | 595 | 506 |
Total other accrued liabilities | $8,272 | $3,263 |
Other_Long_Term_Liabilities_De
Other Long Term Liabilities (Detail) (USD $) | Jan. 03, 2015 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Long Term Liabilities [Line Items] | ||
Acquisition-related contingent consideration | $1,075 | $1,220 |
Deferred rent | 861 | |
Accrued product warranties | 164 | 101 |
Accrued income taxes | 100 | 394 |
Total other long-term liabilities | $2,200 | $1,715 |
Information_Regarding_Other_Ac
Information Regarding Other Acquisition Related Intangible Assets (Detail) (USD $) | Jan. 03, 2015 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Intangible Assets by Major Class [Line Items] | ||
Finite Lived, Gross Carrying Amount | $8,387 | $8,387 |
Accumulated Amortization | 4,421 | 3,485 |
Finite Lived, Net Carrying Amount | 3,966 | 4,902 |
Customer Relationships | ||
Intangible Assets by Major Class [Line Items] | ||
Finite Lived, Gross Carrying Amount | 3,119 | 3,119 |
Accumulated Amortization | 2,426 | 2,206 |
Finite Lived, Net Carrying Amount | 693 | 913 |
Purchased technology | ||
Intangible Assets by Major Class [Line Items] | ||
Finite Lived, Gross Carrying Amount | 5,148 | 5,148 |
Accumulated Amortization | 1,875 | 1,159 |
Finite Lived, Net Carrying Amount | 3,273 | 3,989 |
Covenants not to compete | ||
Intangible Assets by Major Class [Line Items] | ||
Finite Lived, Gross Carrying Amount | 40 | 40 |
Accumulated Amortization | 40 | 40 |
Backlog | ||
Intangible Assets by Major Class [Line Items] | ||
Finite Lived, Gross Carrying Amount | 80 | 80 |
Accumulated Amortization | $80 | $80 |
Goodwill_and_Purchased_Intangi2
Goodwill and Purchased Intangible Assets, Net - Additional Information (Detail) (USD $) | 12 Months Ended | 3 Months Ended | ||
Jan. 03, 2015 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 29, 2013 | |
Intangible Assets And Goodwill [Line Items] | ||||
Total amortization expense of finite-lived intangibles | $936,000 | $876,000 | $543,000 | |
IPR&D | ||||
Intangible Assets And Goodwill [Line Items] | ||||
Indefinite-lived intangible asset | 4,000,000 | |||
Equipment | ||||
Intangible Assets And Goodwill [Line Items] | ||||
Intangible assets | 3,500,000 | |||
Intangible assets, expected useful life | 7 years | |||
Photonics | ||||
Intangible Assets And Goodwill [Line Items] | ||||
Intangible assets | $429,000 |
Estimated_Future_Amortization_
Estimated Future Amortization Expense Related to Finite-Lived Purchased Intangible Assets (Detail) (USD $) | Jan. 03, 2015 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Finite Lived Intangible Assets And Liabilities Future Amortization Expense [Line Items] | ||
2015 | $853 | |
2016 | 853 | |
2017 | 756 | |
2018 | 615 | |
2019 | 615 | |
Thereafter | 274 | |
Finite Lived, Net Carrying Amount | $3,966 | $4,902 |
Contingent_Consideration_Addit
Contingent Consideration - Additional Information (Detail) (Solar Implant Technologies, USD $) | Nov. 19, 2010 |
In Millions, unless otherwise specified | |
Milestone | |
Business Acquisition [Line Items] | |
Maximum amount of cash potentially earned in contingent compensation arrangements | $7 |
Revenue Earnout | |
Business Acquisition [Line Items] | |
Maximum amount of cash potentially earned in contingent compensation arrangements | $9 |
Quantitative_Range_of_Signific
Quantitative Range of Significant Unobservable Inputs Used in Calculation of Fair Value of Continent Consideration Liability (Detail) (Fair Value, Inputs, Level 3, Revenue Earnout, USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Jan. 03, 2015 |
Business Acquisition, Contingent Consideration [Line Items] | |
Valuation technique | Discounted cash flow |
Fair Value | $1,134 |
Weighted Average | |
Business Acquisition, Contingent Consideration [Line Items] | |
Weighted average cost of capital | 15.60% |
Probability weighting of achieving revenue forecasts | 36.50% |
Minimum | |
Business Acquisition, Contingent Consideration [Line Items] | |
Probability weighting of achieving revenue forecasts | 20.00% |
Maximum | |
Business Acquisition, Contingent Consideration [Line Items] | |
Probability weighting of achieving revenue forecasts | 55.00% |
Reconciliation_of_Change_in_Fa
Reconciliation of Change in Fair Value Measurement of Contingent Consideration Liability (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 31, 2013 | Dec. 31, 2012 |
Business Acquisition, Contingent Consideration [Line Items] | |||
Beginning balance | $1,384 | $5,151 | $8,715 |
Changes in fair value | -250 | -3,727 | -219 |
Cash payments made | -40 | -3,345 | |
Ending balance | $1,134 | $1,384 | $5,151 |
Divestitures_Additional_Inform
Divestitures - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended |
Jan. 03, 2015 | Mar. 29, 2013 | |
Divestitures [Line Items] | ||
Earn-out payment received | $75,000 | |
DeltaNu | ||
Divestitures [Line Items] | ||
Proceeds from sale of assets | 500,000 | |
Percentage of Earn-out receivable | 5.00% | |
Earn-out period | 5 years | |
Maximum earn-out payments during payment period | 1,000,000 | |
DeltaNu | Maximum | ||
Divestitures [Line Items] | ||
Maximum consideration receivable from assets sold | 1,500,000 | |
DeltaNu | Minimum | ||
Divestitures [Line Items] | ||
Annual minimum earn-out payment receivable | $100,000 |
Components_of_Gain_Loss_Detail
Components of Gain (Loss) (Detail) (USD $) | 12 Months Ended | 0 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 29, 2013 | Jan. 06, 2012 |
Liabilities divested: | ||||
Gain (Loss) on sale | ($208) | $2,207 | ||
DeltaNu | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Cash proceeds | 500 | |||
Assets sold: | ||||
Accounts receivable | 147 | |||
Inventories | 320 | |||
Other current assets | 27 | |||
Property, plant and equipment | 159 | |||
Trade name | 90 | |||
Total assets sold | 743 | |||
Liabilities divested: | ||||
Accounts payable | 59 | |||
Other accrued expenses | 6 | |||
Total liabilities divested | 65 | |||
Transaction and other costs | 30 | |||
Gain (Loss) on sale | -208 | |||
Mainframe Technology | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Cash proceeds | 3,000 | |||
Assets sold: | ||||
Inventories | 589 | |||
Property, plant and equipment | 178 | |||
Liabilities divested: | ||||
Transaction and other costs | 26 | |||
Gain (Loss) on sale | $2,207 |
Cash_Cash_Equivalents_and_Shor
Cash, Cash Equivalents and Short-Term Investments and Long-Term Investments (Detail) (USD $) | Jan. 03, 2015 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $68,623 | $81,380 |
Unrealized Holdings Gains | 19 | 39 |
Unrealized Holdings Losses | 20 | 5 |
Fair Value | 68,622 | 81,414 |
Cash | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 4,948 | 5,819 |
Fair Value | 4,948 | 5,819 |
Money market funds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 16,534 | 14,302 |
Fair Value | 16,534 | 14,302 |
Cash and Cash Equivalents | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 21,482 | 20,121 |
Fair Value | 21,482 | 20,121 |
Short-term Investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 29,590 | 48,953 |
Unrealized Holdings Gains | 15 | 25 |
Unrealized Holdings Losses | 7 | 3 |
Fair Value | 29,598 | 48,975 |
Short-term Investments | Commercial Paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,995 | 1,998 |
Unrealized Holdings Gains | 2 | 1 |
Fair Value | 2,997 | 1,999 |
Short-term Investments | Corporate bonds and medium-term notes | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 21,203 | 27,181 |
Unrealized Holdings Gains | 2 | 13 |
Unrealized Holdings Losses | 6 | 3 |
Fair Value | 21,199 | 27,191 |
Short-term Investments | Municipal bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 5,392 | 6,108 |
Unrealized Holdings Gains | 11 | 4 |
Unrealized Holdings Losses | 1 | |
Fair Value | 5,402 | 6,112 |
Short-term Investments | U.S. treasury and agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 13,506 | |
Unrealized Holdings Gains | 7 | |
Fair Value | 13,513 | |
Short-term Investments | VRDNs | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 160 | |
Fair Value | 160 | |
Other Long-term Investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 17,551 | 12,306 |
Unrealized Holdings Gains | 4 | 14 |
Unrealized Holdings Losses | 13 | 2 |
Fair Value | 17,542 | 12,318 |
Other Long-term Investments | Corporate bonds and medium-term notes | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 6,266 | 8,811 |
Unrealized Holdings Gains | 1 | 12 |
Unrealized Holdings Losses | 4 | |
Fair Value | 6,263 | 8,823 |
Other Long-term Investments | Municipal bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,290 | 3,495 |
Unrealized Holdings Gains | 2 | |
Unrealized Holdings Losses | 8 | 2 |
Fair Value | 2,282 | 3,495 |
Other Long-term Investments | U.S. treasury and agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 8,995 | |
Unrealized Holdings Gains | 3 | |
Unrealized Holdings Losses | 1 | |
Fair Value | $8,997 |
Contractual_Maturities_of_Avai
Contractual Maturities of Available-For-Sale Securities (Detail) (USD $) | Jan. 03, 2015 |
In Thousands, unless otherwise specified | |
Amortized Cost | |
Amortized Cost, Due in one year or less | $45,121 |
Amortized Cost, Due after one through two years | 18,554 |
Amortized Cost | 63,675 |
Fair Value | |
Fair Value, Due in one year or less | 45,129 |
Fair Value, Due after one through two years | 18,545 |
Fair Value | $63,674 |
Fair_Market_Value_of_Investmen
Fair Market Value of Investments with Unrealized Losses Not Deemed to be Other-Than Temporarily Impaired (Detail) (USD $) | Jan. 03, 2015 |
In Thousands, unless otherwise specified | |
Schedule of Available-for-sale Securities [Line Items] | |
Unrealized Loss Position, Less than 12 Months, Fair Value | $21,149 |
Unrealized Loss Position, Less than 12 Months, Gross Unrealized Losses | 20 |
Unrealized Loss Position, Greater than 12 Months, Fair Value | 0 |
Unrealized Loss Position, Greater than 12 Months, Gross Unrealized Losses | 0 |
Corporate bonds and medium-term notes | |
Schedule of Available-for-sale Securities [Line Items] | |
Unrealized Loss Position, Less than 12 Months, Fair Value | 15,869 |
Unrealized Loss Position, Less than 12 Months, Gross Unrealized Losses | 10 |
Unrealized Loss Position, Greater than 12 Months, Fair Value | 0 |
Unrealized Loss Position, Greater than 12 Months, Gross Unrealized Losses | 0 |
Municipal bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
Unrealized Loss Position, Less than 12 Months, Fair Value | 3,281 |
Unrealized Loss Position, Less than 12 Months, Gross Unrealized Losses | 9 |
Unrealized Loss Position, Greater than 12 Months, Fair Value | 0 |
Unrealized Loss Position, Greater than 12 Months, Gross Unrealized Losses | 0 |
U.S. treasury and agency securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Unrealized Loss Position, Less than 12 Months, Fair Value | 1,999 |
Unrealized Loss Position, Less than 12 Months, Gross Unrealized Losses | 1 |
Unrealized Loss Position, Greater than 12 Months, Fair Value | 0 |
Unrealized Loss Position, Greater than 12 Months, Gross Unrealized Losses | $0 |
Fair_Value_Hierarchy_of_Availa
Fair Value Hierarchy of Available-for-Sale Securities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Jan. 03, 2015 |
In Thousands, unless otherwise specified | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | $63,674 |
Fair Value, Measurements, Recurring | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 63,674 |
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 | 16,534 |
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 | 8,997 |
Fair Value, Measurements, Recurring | Commercial Paper | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 2,997 |
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 | 27,462 |
Fair Value, Measurements, Recurring | Municipal bonds | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 7,684 |
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 | 23,531 |
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 | 16,534 |
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 | 6,997 |
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 | 40,143 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | U.S. treasury and agency securities | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total recurring fair value measurements | 2,000 |
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 | 2,997 |
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 | 27,462 |
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 | $7,684 |
Changes_in_Level_Three_Instrum
Changes in Level Three Instruments Consisting of Auction Rate Securities Classified As Available-for-Sale Securities and Measured on Recurring Basis (Detail) (Fair Value, Measurements, Recurring, Auction rate securities ("ARS"), Fair Value, Inputs, Level 3, USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2012 |
Fair Value, Measurements, Recurring | Auction rate securities ("ARS") | Fair Value, Inputs, Level 3 | |
Fair Value, Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Opening balance | $4,490 |
Total gains (losses) for the period Included in earnings | -381 |
Included in other comprehensive income | 410 |
Proceeds from sales | -1,748 |
Proceeds from tender offers | -2,771 |
Closing balance | $0 |
Financial_Instruments_Addition
Financial Instruments - Additional Information (Detail) | 12 Months Ended |
Jan. 03, 2015 | |
Maturity Period One | |
Derivative [Line Items] | |
Maturity of foreign currency derivative | 30 days |
Maturity Period Two | |
Derivative [Line Items] | |
Maturity of foreign currency derivative | 60 days |
Maturity Period Three | |
Derivative [Line Items] | |
Maturity of foreign currency derivative | 210 days |
Maturity Period Four | |
Derivative [Line Items] | |
Maturity of foreign currency derivative | 240 days |
Summary_of_Outstanding_Derivat
Summary of Outstanding Derivative Instruments on Gross Basis as Recorded in Consolidated Balance Sheets (Detail) (Undesignated Hedges, USD $) | Jan. 03, 2015 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amounts | $2,647 | $894 | |
Derivative Assets | 10 | [1] | |
Derivative Liabilities | 4 | [2] | |
Foreign currency forward contracts | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amounts | 2,647 | 894 | |
Derivative Assets | 10 | [1] | |
Derivative Liabilities | $4 | [2] | |
[1] | Prepaid expenses and other current assets | ||
[2] | Other accrued liabilities |
Equity_Additional_Information_
Equity - Additional Information (Detail) (USD $) | Jan. 03, 2015 | Nov. 21, 2013 |
In Millions, unless otherwise specified | ||
Equity, Class of Treasury Stock [Line Items] | ||
Stock repurchase authorized amount | $30 | |
Stock repurchase remains available for future stock repurchase | $20 |
Stock_Repurchases_Detail
Stock Repurchases (Detail) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Jan. 03, 2015 | Dec. 31, 2013 |
Equity, Class of Treasury Stock [Line Items] | ||
Shares of common stock repurchased | 1,185 | 241 |
Cost of stock repurchased | $8,302 | $1,688 |
Average price paid per share | $6.97 | $6.97 |
Provision_for_Benefit_from_Inc
Provision for (Benefit from) Income Tax (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 31, 2013 | Dec. 31, 2012 |
Federal: | |||
Current | ($324) | ($3,925) | $3 |
Deferred | 3,387 | 17,160 | |
Federal Income Tax Expense (Benefit), Continuing Operations, Total | -324 | -538 | 17,163 |
State: | |||
Current | 5 | 12 | -13 |
Deferred | 0 | 0 | 0 |
State and Local Income Tax Expense (Benefit), Continuing Operations, Total | 5 | 12 | -13 |
Foreign: | |||
Current | 81 | -38 | -150 |
Deferred | 8,666 | -1,158 | -3,760 |
Foreign Income Tax Expense (Benefit), Continuing Operations, Total | 8,747 | -1,196 | -3,910 |
Total | $8,428 | ($1,722) | $13,240 |
Loss_Before_Income_Taxes_Benef
Loss Before Income Taxes (Benefit) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Components of Income Before Income Tax Expense (Benefit) [Line Items] | |||
U.S | ($13,191) | ($11,478) | ($32,128) |
Foreign | -5,826 | -5,940 | -9,951 |
Income (loss) before income taxes | ($19,017) | ($17,418) | ($42,079) |
Effective tax rate | -44.30% | 9.90% | -31.50% |
Significant_Components_of_Defe
Significant Components of Deferred Tax Assets (Detail) (USD $) | Jan. 03, 2015 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Vacation, warranty and other accruals | $997 | $1,269 |
Depreciation and amortization | 538 | 1,554 |
Intangible amortization | 2,767 | 3,235 |
Inventory valuation | 3,117 | 1,706 |
Deferred income | 1,621 | 43 |
Equity-based compensation | 5,920 | 6,242 |
Net operating loss, research and other tax credit carryforwards | 47,044 | 43,470 |
Other | 358 | 49 |
Deferred Tax Assets, Gross, Total | 62,362 | 57,568 |
Valuation allowance for deferred tax assets | -60,612 | -46,126 |
Total deferred tax assets | 1,750 | 11,442 |
Deferred tax liabilities: | ||
Purchased technology | -1,195 | -1,488 |
Unbilled revenue | -555 | -1,004 |
Other | -284 | |
Total deferred tax liabilities | -1,750 | -2,776 |
Net deferred tax assets | 8,666 | |
As reported on the balance sheet: | ||
Current deferred tax assets | 103 | |
Non-current deferred tax assets | 5 | 9,502 |
Current deferred tax liability | -5 | -939 |
Net deferred tax assets | $8,666 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Jan. 03, 2015 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Taxes [Line Items] | ||||
Income tax benefit from valuation allowance | $9,394,000 | $23,437,000 | ||
Unrecognized tax benefits | 6,578,000 | 6,482,000 | 6,000,000 | 5,022,000 |
Unrecognized tax benefits that would impact effective tax rate | 250,000 | |||
Recognized net tax expense(benefit) for interest | 110,000 | 13,000 | ||
Accrued interest related to unrealized tax benefits | 7,000 | |||
Internal Revenue Service (IRS) | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | 51,600,000 | |||
Net operating loss carryforwards, expiration year | 2028 | |||
Tax credit carryforwards | 11,300,000 | |||
Tax credit carryforwards, expiration year | 2019 | |||
SINGAPORE | ||||
Income Taxes [Line Items] | ||||
Income tax benefit from valuation allowance | 9,400,000 | |||
United States | ||||
Income Taxes [Line Items] | ||||
Income tax benefit from valuation allowance | 4,700,000 | 7,200,000 | 23,400,000 | |
Foreign Tax Authority | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | 56,100,000 | |||
Undistributed earnings | 11,800,000 | |||
Tax holiday ending years | 2015 | |||
Reduced income tax benefit | 1,600,000 | |||
Income tax benefit on net income loss per share | $0.07 | |||
State and Local Jurisdiction | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | 61,300,000 | |||
Net operating loss carryforwards, expiration year | 2015 | |||
Tax credit carryforwards | $12,000,000 |
Difference_Between_Tax_Provisi
Difference Between Tax Provision (Benefit) at Statutory Federal Income Tax Rate and Tax Provision (Benefit) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation Of Income Taxes [Line Items] | |||
Income tax (benefit) at the federal statutory rate | ($6,656) | ($6,096) | ($14,728) |
State income taxes, net of federal benefit | 5 | 12 | -15 |
Effect of foreign operations taxed at various rates | 1,662 | 983 | -428 |
Nondeductible goodwill impairment | 3,670 | ||
Research tax credits | -569 | -2,284 | |
Effect of tax rate changes, permanent differences and adjustments of prior deferrals | 153 | -1,062 | 367 |
Unrecognized tax benefits | -294 | -476 | 1,044 |
Total | 8,428 | -1,722 | 13,240 |
United States | |||
Reconciliation Of Income Taxes [Line Items] | |||
Change in valuation allowance | 4,733 | 7,201 | 23,330 |
Foreign Tax Authority | |||
Reconciliation Of Income Taxes [Line Items] | |||
Change in valuation allowance | $9,394 |
Aggregate_Changes_in_Balance_o
Aggregate Changes in Balance of Gross Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of Unrecognized Tax Benefits [Line Items] | |||
Beginning balance | $6,482 | $6,000 | $5,022 |
Additions based on tax positions related to the current year | 57 | 597 | 978 |
Additions for tax positions of prior years | 250 | 98 | |
Settlements | 0 | 0 | 0 |
Lapse of statute of limitations | -211 | -213 | |
Ending balance | $6,578 | $6,482 | $6,000 |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Jan. 03, 2015 | Dec. 31, 2013 | Dec. 31, 2012 | |
Age | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution retirement plan, employee eligibility age | 18 | ||
Cash contributions | $0 | $422,000 | $501,000 |
Defined bonus plan, charges to expenses | 22,000 | 1,700,000 | 210,000 |
Equity-based compensation | 3,000,000 | 2,494,000 | 3,820,000 |
Restricted Stock Units (RSUs) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Award, vesting period | 4 years | ||
Equity-based compensation | 1,464,000 | 419,000 | 201,000 |
Annual Incentive Plan | Restricted Stock Units (RSUs) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Award, vesting period | 1 year | ||
Equity-based compensation | $554,000 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Jan. 03, 2015 | Dec. 31, 2013 | Dec. 31, 2012 | |
Commitments and Contingencies [Line Items] | |||
Deferred rent, included in other long-term liabilities | $861,000 | ||
Tenant improvement allowance | 1,700,000 | ||
Standby letter of credit for lease | 1,000,000 | ||
Restricted cash | 1,780,000 | ||
Gross rental expense | 3,800,000 | 2,900,000 | 3,000,000 |
Letters of credit and bank guarantees outstanding, amount | 1,780,000 | ||
Minimum product warranty range | 12 months | ||
Maximum product warranty range | 24 months | ||
Product warranty offer on sale | 3 months | ||
Pledged as Collateral for Standby Letter of Credit | |||
Commitments and Contingencies [Line Items] | |||
Restricted cash | $1,000,000 | ||
Maximum | |||
Commitments and Contingencies [Line Items] | |||
Operating lease expiration date | 2024-03 |
Future_Minimum_Lease_Payments_
Future Minimum Lease Payments (Detail) (USD $) | Jan. 03, 2015 |
In Thousands, unless otherwise specified | |
Operating Leased Assets [Line Items] | |
2015 | $3,206 |
2016 | 3,075 |
2017 | 2,640 |
2018 | 2,630 |
2019 | 2,709 |
Thereafter | 12,440 |
Operating Leases, Future Minimum Payments Due, Total | $26,700 |
Warranty_Provision_Account_Det
Warranty Provision Account (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 31, 2013 |
Accrued Warranty [Line Items] | ||
Beginning balance | $1,647 | $2,349 |
Expenditures incurred under warranties | -834 | -1,033 |
Accruals for product warranties | 931 | 1,091 |
Adjustments to previously existing warranty accruals | -558 | -760 |
Ending balance | $1,186 | $1,647 |
Segment_and_Geographic_Informa2
Segment and Geographic Information - Additional Information (Detail) | 12 Months Ended |
Jan. 03, 2015 | |
Segment | |
Segment Reporting Disclosure [Line Items] | |
Number of reportable segments | 2 |
Allocation of corporate expenses to the segments | 3.00% |
Information_for_Each_Reportabl
Information for Each Reportable Segment (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 31, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Jan. 03, 2015 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Total segment net revenues | $19,062 | $14,757 | $14,715 | $17,015 | $20,552 | $19,115 | $16,983 | $12,982 | $65,550 | $69,632 | $83,424 |
Unallocated costs | -6,278 | -5,722 | -6,181 | ||||||||
Impairment of goodwill and intangible assets | -18,419 | ||||||||||
Gain (loss) on divestitures | -208 | 2,207 | |||||||||
Operating loss | -19,354 | -17,823 | -42,533 | ||||||||
Interest income | 179 | 279 | 806 | ||||||||
Other income and expense, net | 158 | 126 | -352 | ||||||||
Loss before income taxes | -19,017 | -17,418 | -42,079 | ||||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating loss | -13,076 | -11,893 | -20,140 | ||||||||
Equipment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total segment net revenues | 25,290 | 39,135 | 52,538 | ||||||||
Equipment | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating loss | -22,008 | -12,951 | -19,934 | ||||||||
Photonics | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total segment net revenues | 40,260 | 30,497 | 30,886 | ||||||||
Photonics | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating loss | $8,932 | $1,058 | ($206) |
Depreciation_and_Amortization_
Depreciation and Amortization (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | $4,705 | $4,518 | $4,479 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 4,213 | 4,046 | 3,809 |
Operating Segments | Equipment | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 2,379 | 2,146 | 2,003 |
Operating Segments | Photonics | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 1,834 | 1,900 | 1,806 |
Unallocated Amount to Segment | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | $492 | $472 | $670 |
Capital_Additions_Detail
Capital Additions (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Capital additions | $3,705 | $3,323 | $3,280 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Capital additions | 3,433 | 2,751 | 2,795 |
Operating Segments | Equipment | |||
Segment Reporting Information [Line Items] | |||
Capital additions | 2,230 | 1,857 | 1,260 |
Operating Segments | Photonics | |||
Segment Reporting Information [Line Items] | |||
Capital additions | 1,203 | 894 | 1,535 |
Unallocated Amount to Segment | |||
Segment Reporting Information [Line Items] | |||
Capital additions | $272 | $572 | $485 |
Assets_for_Each_Reportable_Seg
Assets for Each Reportable Segment (Detail) (USD $) | Jan. 03, 2015 | Dec. 31, 2013 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Cash and investments | $68,622,000 | $81,414,000 |
Restricted cash | 1,780,000 | |
Deferred income taxes | 5,000 | 9,605,000 |
Other current assets | 989,000 | 982,000 |
Common property, plant and equipment | 1,083,000 | 1,302,000 |
Other assets | 425,000 | |
Consolidated total assets | 120,275,000 | 148,276,000 |
Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated total assets | 47,796,000 | 54,548,000 |
Operating Segments | Equipment | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated total assets | 30,670,000 | 33,428,000 |
Operating Segments | Photonics | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated total assets | $17,126,000 | $21,120,000 |
Revenue_from_Unaffiliated_Cust
Revenue from Unaffiliated Customers by Geographic Region/Country (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 31, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Jan. 03, 2015 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Segment Reporting Information [Line Items] | ||||||||||||||
Total net revenues | $19,062 | $14,757 | $14,715 | $17,015 | $20,552 | $19,115 | $16,983 | $12,982 | $65,550 | $69,632 | $83,424 | |||
United States | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Total net revenues | 51,584 | 32,534 | 30,845 | |||||||||||
Asia | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Total net revenues | 9,931 | [1] | 31,907 | [1] | 47,712 | [1] | ||||||||
Europe | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Total net revenues | 4,035 | 5,191 | 3,795 | |||||||||||
Rest of World | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Total net revenues | $1,072 | |||||||||||||
[1] | Revenues are attributable to the geographic area in which Intevac's customers are located. Net trade revenues in Asia include shipments to Singapore, China, Japan and Malaysia. |
Net_Property_Plant_and_Equipme
Net Property, Plant and Equipment by Geographic Region (Detail) (USD $) | Jan. 03, 2015 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ||
Net property, plant & equipment | $12,826 | $12,945 |
United States | ||
Segment Reporting Information [Line Items] | ||
Net property, plant & equipment | 11,534 | 11,240 |
Asia | ||
Segment Reporting Information [Line Items] | ||
Net property, plant & equipment | $1,292 | $1,705 |
Restructuring_Charges_Addition
Restructuring Charges - Additional Information (Detail) (USD $) | 0 Months Ended | 6 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Feb. 01, 2013 | Jun. 28, 2014 | Jan. 03, 2015 |
Restructuring Cost and Reserve [Line Items] | |||
Percentage of reduction of global workforce | 18.00% | 6.00% | |
Reduction in salary, wages and other employee-related expenses due to implementation of plan | $2.10 |
Changes_in_Restructuring_Reser
Changes in Restructuring Reserves (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 31, 2013 |
Restructuring Cost and Reserve [Line Items] | ||
Balance at the beginning of the year | $0 | $0 |
Provision for restructuring charges | 288 | 742 |
Cash payments made | -288 | -742 |
Balance at the end of the year | $0 | $0 |
Selected_Quarterly_Consolidate2
Selected Quarterly Consolidated Financial Data (Unaudited) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 31, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Jan. 03, 2015 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Results Of Operations [Line Items] | |||||||||||
Net sales | $19,062 | $14,757 | $14,715 | $17,015 | $20,552 | $19,115 | $16,983 | $12,982 | $65,550 | $69,632 | $83,424 |
Gross profit | 2,596 | 4,815 | 5,211 | 4,810 | 7,737 | 6,895 | 3,829 | 3,514 | 17,433 | 21,973 | 34,158 |
Net income (loss) | ($14,358) | ($3,559) | ($5,007) | ($4,521) | $1,725 | ($2,745) | ($6,412) | ($8,264) | ($27,445) | ($15,696) | ($55,319) |
Basic and diluted loss per share | ($0.62) | ($0.15) | ($0.21) | ($0.19) | $0.07 | ($0.11) | ($0.27) | ($0.35) | ($1.16) | ($0.66) | ($2.37) |