Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 29, 2019 | Aug. 01, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 29, 2019 | |
Document Transition Report | false | |
Entity File Number | 000-50307 | |
Entity Registrant Name | FormFactor, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 13-3711155 | |
Entity Address, Address Line One | 7005 Southfront Road | |
Entity Address, City or Town | Livermore | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94551 | |
City Area Code | 925 | |
Local Phone Number | 290-4000 | |
Title of 12(b) Security | Common stock, $0.001 par value | |
Trading Symbol | FORM | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 75,185,253 | |
Amendment Flag | false | |
Entity Central Index Key | 0001039399 | |
Current Fiscal Year End Date | --12-28 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 29, 2019 | Dec. 29, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 124,810 | $ 98,472 |
Marketable securities | 52,071 | 50,531 |
Accounts receivable, net of allowance for doubtful accounts of $189 and $185 | 71,289 | 95,333 |
Inventories, net | 83,852 | 77,706 |
Restricted cash | 818 | 849 |
Refundable income taxes | 524 | 1,260 |
Prepaid expenses and other current assets | 14,282 | 13,669 |
Total current assets | 347,646 | 337,820 |
Restricted cash | 1,066 | 1,225 |
Operating Lease, Right-of-Use Asset | 33,274 | 0 |
Property, plant and equipment, net of accumulated depreciation of $270,566 and $263,102 | 54,436 | 54,054 |
Goodwill | 189,121 | 189,214 |
Intangibles, net | 53,404 | 67,640 |
Deferred tax assets | 77,279 | 77,301 |
Other assets | 1,343 | 968 |
Total assets | 757,569 | 728,222 |
Current liabilities: | ||
Accounts payable | 26,252 | 40,006 |
Accrued liabilities | 29,500 | 27,731 |
Current portion of term loan, net of unamortized issuance cost of $93 and $160 | 33,657 | 29,840 |
Deferred revenue | 7,198 | 4,941 |
Operating Lease, Liability, Current | 6,203 | 0 |
Total current liabilities | 102,810 | 102,518 |
Long-term income taxes payable | 12,500 | 34,971 |
Deferred tax liabilities | 2,339 | 2,355 |
Operating Lease, Liability, Noncurrent | 31,173 | 0 |
Other liabilities | 4,645 | 8,214 |
Total liabilities | 153,467 | 148,058 |
Stockholders’ equity: | ||
Preferred stock, $0.001 par value: 10,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock, $0.001 par value: 250,000,000 shares authorized; 74,101,623 and 72,532,176 shares issued and outstanding | 75 | 74 |
Additional paid-in capital | 875,024 | 862,897 |
Accumulated other comprehensive income | 159 | 780 |
Accumulated deficit | (271,156) | (283,587) |
Total stockholders’ equity | 604,102 | 580,164 |
Total liabilities and stockholders’ equity | $ 757,569 | $ 728,222 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 29, 2019 | Dec. 29, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 189 | $ 185 |
Accumulated depreciation | 270,566 | 263,102 |
Debt Issuance Costs, Current, Net | 93 | 160 |
Debt Issuance Costs, Noncurrent, Net | $ 0 | $ 129 |
Preferred stock, par value (In dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (In shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (In shares) | 0 | 0 |
Preferred stock, shares outstanding (In shares) | 0 | 0 |
Common stock, par value (In dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (In shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (In shares) | 74,691,781 | 74,139,712 |
Common stock, shares outstanding (In shares) | 74,691,781 | 74,139,712 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
Revenues | $ 138,018 | $ 135,509 | $ 270,231 | $ 253,799 |
Cost of revenues | 82,666 | 79,291 | 162,358 | 152,452 |
Gross profit | 55,352 | 56,218 | 107,873 | 101,347 |
Operating expenses: | ||||
Research and development | 20,074 | 19,675 | 39,797 | 37,721 |
Selling, general and administrative | 26,283 | 25,232 | 51,467 | 48,681 |
Total operating expenses | 46,357 | 44,907 | 91,264 | 86,402 |
Operating income | 8,995 | 11,311 | 16,609 | 14,945 |
Interest income | 684 | 326 | 1,264 | 583 |
Interest expense | (522) | (910) | (1,117) | (1,877) |
Other income (expense), net | 81 | 50 | (3) | (462) |
Income before income taxes | 9,238 | 10,777 | 16,753 | 13,189 |
Provision for income taxes | 2,290 | 1,654 | 4,322 | 1,941 |
Net income | $ 6,948 | $ 9,123 | $ 12,431 | $ 11,248 |
Net income per share: | ||||
Basic (In dollars per share) | $ 0.09 | $ 0.12 | $ 0.17 | $ 0.15 |
Diluted (In dollars per share) | $ 0.09 | $ 0.12 | $ 0.16 | $ 0.15 |
Basic | ||||
Basic (In shares) | 74,478 | 73,157 | 74,483 | 72,991 |
Diluted (In shares) | 76,189 | 74,533 | 76,061 | 74,427 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 6,948 | $ 9,123 | $ 12,431 | $ 11,248 |
Other comprehensive income (loss), net of tax: | ||||
Translation adjustments and other | 689 | (3,449) | (228) | (1,283) |
Unrealized gains (losses) on available-for-sale marketable securities | 142 | 40 | 293 | (134) |
Unrealized gains (losses) on derivative instruments | (73) | (85) | (686) | 87 |
Other comprehensive income (loss), net of tax | 758 | (3,494) | (621) | (1,330) |
Comprehensive income | $ 7,706 | $ 5,629 | $ 11,810 | $ 9,918 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Accumulated Deficit |
Beginning balance (In shares) at Dec. 30, 2017 | 72,532,176,000 | ||||
Beginning balance at Dec. 30, 2017 | $ 458,637 | $ 73 | $ 843,116 | $ 3,021 | $ (387,573) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock under the Employee Stock Purchase Plan (In shares) | 341,670,000 | ||||
Issuance of common stock under the Employee Stock Purchase Plan | 3,705 | $ 1 | 3,704 | ||
Issuance of common stock pursuant to exercise of options for cash (In shares) | 105,610,000 | ||||
Issuance of common stock pursuant to exercise of options for cash | 1,049 | 1,049 | |||
Issuance of common stock pursuant to vesting of restricted stock units (In shares) | 378,652,000 | ||||
Issuance of common stock pursuant to exercise of options for cash | (2,453) | (2,453) | |||
Stock-based compensation | 7,862 | 7,862 | |||
Accounting standard adoptions and adjustments | (50) | 0 | (50) | ||
Other comprehensive loss | (1,330) | (1,330) | |||
Net income | 11,248 | 11,248 | |||
Ending balance (In shares) at Jun. 30, 2018 | 73,358,108,000 | ||||
Ending balance at Jun. 30, 2018 | 478,668 | $ 74 | 853,278 | 1,691 | (376,375) |
Beginning balance (In shares) at Mar. 31, 2018 | 73,013,842,000 | ||||
Beginning balance at Mar. 31, 2018 | 471,010 | $ 74 | 851,249 | 5,185 | (385,498) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock pursuant to vesting of restricted stock units (In shares) | 344,266,000 | ||||
Issuance of common stock pursuant to exercise of options for cash | (2,096) | (2,096) | |||
Stock-based compensation | 4,125 | 4,125 | |||
Other comprehensive loss | (3,494) | (3,494) | |||
Net income | 9,123 | 9,123 | |||
Ending balance (In shares) at Jun. 30, 2018 | 73,358,108,000 | ||||
Ending balance at Jun. 30, 2018 | $ 478,668 | $ 74 | 853,278 | 1,691 | (376,375) |
Beginning balance (In shares) at Dec. 29, 2018 | 74,139,712 | 74,139,712,000 | |||
Beginning balance at Dec. 29, 2018 | $ 580,164 | $ 74 | 862,897 | 780 | (283,587) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock under the Employee Stock Purchase Plan (In shares) | 301,497,000 | ||||
Issuance of common stock under the Employee Stock Purchase Plan | 3,670 | 3,670 | |||
Issuance of common stock pursuant to exercise of options for cash (In shares) | 19,207,000 | ||||
Issuance of common stock pursuant to exercise of options for cash | 90 | 90 | |||
Issuance of common stock pursuant to vesting of restricted stock units (In shares) | 231,365,000 | ||||
Issuance of common stock pursuant to exercise of options for cash | (2,156) | $ 1 | (2,157) | ||
Stock-based compensation | 10,524 | 10,524 | |||
Other comprehensive loss | (621) | (621) | |||
Net income | $ 12,431 | 12,431 | |||
Ending balance (In shares) at Jun. 29, 2019 | 74,691,781 | 74,691,781,000 | |||
Ending balance at Jun. 29, 2019 | $ 604,102 | $ 75 | 875,024 | 159 | (271,156) |
Beginning balance (In shares) at Mar. 30, 2019 | 74,488,498,000 | ||||
Beginning balance at Mar. 30, 2019 | 592,988 | $ 74 | 871,617 | (599) | (278,104) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock pursuant to exercise of options for cash (In shares) | 203,283,000 | ||||
Issuance of common stock pursuant to exercise of options for cash | (1,854) | $ 1 | (1,855) | ||
Stock-based compensation | 5,262 | 5,262 | |||
Other comprehensive loss | 758 | 758 | |||
Net income | $ 6,948 | 6,948 | |||
Ending balance (In shares) at Jun. 29, 2019 | 74,691,781 | 74,691,781,000 | |||
Ending balance at Jun. 29, 2019 | $ 604,102 | $ 75 | $ 875,024 | $ 159 | $ (271,156) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 29, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 12,431 | $ 11,248 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 8,289 | 6,893 |
Amortization | 14,169 | 14,364 |
Amortization (accretion) of discount on investments | (180) | 36 |
Amortization of operating lease, right-of-use assets | 2,620 | 0 |
Stock-based compensation expense | 10,584 | 7,884 |
Amortization of debt issuance costs | 96 | 235 |
Deferred income tax provision | 38 | 70 |
Provision for excess and obsolete inventories | 5,304 | 4,593 |
Loss on disposal of long-lived assets | 262 | 48 |
Loss on derivative instruments | 34 | 0 |
Foreign currency transaction gains | (423) | (109) |
Changes in assets and liabilities: | ||
Accounts receivable | 24,177 | (3,330) |
Inventories | (11,574) | (13,687) |
Prepaid expenses and other current assets | (872) | (4,760) |
Refundable income taxes | 737 | 925 |
Other assets | (572) | 663 |
Accounts payable | (11,115) | 6,239 |
Accrued liabilities | (309) | (3,541) |
Income tax payable | 1,839 | (281) |
Other liabilities | 41 | 2,540 |
Deferred revenues | 2,216 | 28 |
Operating lease liabilities | (2,416) | 0 |
Asset retirement obligations | 55,376 | 30,058 |
Net cash provided by operating activities | ||
Cash flows from investing activities: | (11,460) | (8,545) |
Proceeds from sale of a subsidiary | 56 | 41 |
Proceeds from sale of property, plant and equipment | (20,776) | (10,715) |
Purchases of marketable securities | 19,710 | 12,257 |
Net cash used in investing activities | (12,470) | (6,962) |
Net cash used in investing activities | ||
Cash flows from financing activities: | 3,870 | 4,754 |
Purchase and retirement of common stock | (2,157) | (2,453) |
Proceeds from term loan debt | (18,750) | (21,250) |
Payment of term loan debt issuance costs | (17,037) | (18,949) |
Net cash used in financing activities | 279 | (58) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 26,148 | 4,089 |
Net increase in cash, cash equivalents and restricted cash | 100,546 | 92,726 |
Cash, cash equivalents and restricted cash, beginning of period | 126,694 | 96,815 |
Fair value of stock options and restricted stock-based awards assumed in connection with acquisition of Cascade Microtech | ||
Change in accounts payable and accrued liabilities related to property, plant and equipment purchases | (2,497) | 982 |
Operating lease, right-of-use assets obtained in exchange for lease obligations | 35,885 | 0 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes, net | 1,700 | 1,182 |
Cash paid for interest | $ 778 | $ 1,617 |
Basis of Presentation and New A
Basis of Presentation and New Accounting Pronouncements | 6 Months Ended |
Jun. 29, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and New Accounting Pronouncements | Basis of Presentation and New Accounting Pronouncements Basis of Presentation The accompanying condensed consolidated financial information of FormFactor, Inc. is unaudited and has been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission. However, such information reflects all adjustments, consisting only of normal recurring adjustments, which are, in the opinion of management, necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods. The financial information as of December 29, 2018 is derived from our 2018 Annual Report on Form 10-K. The condensed consolidated financial statements included herein should be read in conjunction with the consolidated financial statements and the notes thereto included in our 2018 Annual Report on Form 10-K. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the full year. Fiscal Year We operate on a 52 / 53 week fiscal year, whereby the fiscal year ends on the last Saturday of December. Fiscal 2019 and 2018 each contain 52 weeks and the six months ended June 29, 2019 and June 30, 2018 each contained 26 weeks. Fiscal 2019 will end on December 28, 2019 . Reclassifications Certain immaterial reclassifications were made to the prior period financial statements to conform to the current period presentation. Critical Accounting Policies Our critical accounting policies have not changed during the six months ended June 29, 2019 from those disclosed in our Annual Report on Form 10-K for the year ended December 29, 2018 . New Accounting Pronouncements ASU 2018-15 In August 2018, the Financial Accounting Standard Board ("FASB") issued Accounting Standards Update ("ASU") 2018-15, " Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. " The new guidance clarifies the accounting for implementation costs in cloud computing arrangements. ASU 2018-15 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. ASU 2018-15 should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. We have not yet determined the impact of this standard on our financial statements. ASU 2016-02, ASU 2018-10, ASU 2018-11 and ASU 2019-01 In February 2016, the FASB issued ASU 2016-02, " Leases (Topic 842) ," which requires the recognition of right-of-use assets and lease liabilities for all long-term leases, including operating leases, on the balance sheet. ASU 2016-02 was amended in July 2018 by both ASU 2018-10, " Codification Improvements to Topic 842, Leases ," and ASU 2018-11, " Leases (Topic 842): Targeted Improvements " and in March 2019 by ASU 2019-01, " Leases (Topic 842): Codification Improvements. " ASU 2016-02 provides additional guidance on the measurement of the right-of-use assets and lease liabilities and requires enhanced disclosures about our leasing arrangements. We adopted Topic 842 and all related amendments on December 30, 2018, the first day of fiscal 2019, using the modified transition approach. The modified transition approach permits a company to use its effective date as the date of initial application to apply the standard to its leases, and, therefore, not restate comparative prior period financial information. Consequently, prior period financial information is not updated, and the disclosures required under the new standard will not be provided for dates and periods before December 30, 2018. The standard provides several optional practical expedients in transition. We elected the ‘package of practical expedients,’ which permits us to not reassess, under the new standard, our prior conclusions about lease identification, lease classification and initial direct costs. We did not elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter not being applicable to us. The new standard also provides practical expedients for an entity’s ongoing accounting. We elected the short-term lease recognition exemption. This means, for those leases that qualify, we will not recognize a right-of-use asset or lease liability, and this includes not recognizing right-of-use assets or lease liabilities for existing short-term leases of those assets in transition. We also elected the practical expedient to not separate lease and non-lease components for all our leases. The adoption of the lease standard did not have any effect on our previously reported Condensed Consolidated Statements of Income and did not result in a cumulative catch-up adjustment to opening equity. See Note 12 for additional information. |
Concentration of Credit and Oth
Concentration of Credit and Other Risks | 6 Months Ended |
Jun. 29, 2019 | |
Risks and Uncertainties [Abstract] | |
Concentration of Credit and Other Risks | Concentration of Credit and Other Risks Each of the following customers accounted for 10% or more of our revenues for the periods indicated: Three Months Ended Six Months Ended June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Intel Corporation 26.1 % 15.1 % 23.8 % 14.6 % Samsung Electronics., LTD. 11.1 * 12.4 * Micron Technology, Inc. 10.1 * * * SK Hynix Inc. * 11.5 * 10.9 47.3 % 26.6 % 36.2 % 25.5 % *Represents less than 10% of total revenues. At June 29, 2019 , two customers accounted for 17.3% and 11.3% of gross accounts receivable, respectively. At December 29, 2018 , two customers accounted for 27.8% and 13.0% |
Inventories
Inventories | 6 Months Ended |
Jun. 29, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories, net Inventories are stated at the lower of cost (principally standard cost, which approximates actual cost on a first in, first out basis) or net realizable value. Inventories, net, consisted of the following (in thousands): June 29, December 29, Raw materials $ 43,143 $ 43,380 Work-in-progress 26,022 20,431 Finished goods 14,687 13,895 $ 83,852 $ 77,706 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 29, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill by reportable segment was as follows (in thousands): Probe Cards Systems Total Goodwill, gross, as of December 30, 2017 $ 172,482 $ 17,438 $ 189,920 Foreign currency translation — (706 ) (706 ) Goodwill, gross, as of December 29, 2018 172,482 16,732 189,214 Foreign currency translation — (93 ) (93 ) Goodwill, gross, as of June 29, 2019 $ 172,482 $ 16,639 $ 189,121 We have not recorded any goodwill impairments as of June 29, 2019 . Intangible assets were as follows (in thousands): June 29, 2019 December 29, 2018 Other Intangible Assets Gross Accumulated Amortization Net Gross Accumulated Amortization Net Existing developed technologies $ 143,334 $ 106,513 $ 36,821 $ 143,408 $ 97,111 $ 46,297 Trade name 12,014 11,256 758 12,023 9,173 2,850 Customer relationships 40,123 24,298 15,825 40,146 21,653 18,493 $ 195,471 $ 142,067 $ 53,404 $ 195,577 $ 127,937 $ 67,640 Amortization expense was included in our Condensed Consolidated Statements of Income as follows (in thousands): Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, Cost of revenues $ 4,711 $ 5,138 $ 9,430 $ 10,295 Selling, general and administrative 2,368 2,032 4,739 4,069 $ 7,079 $ 7,170 $ 14,169 $ 14,364 The estimated future amortization of intangible assets is as follows (in thousands): Fiscal Year Amount Remainder of 2019 $ 12,189 2020 23,358 2021 12,616 2022 3,493 2023 1,748 $ 53,404 |
Accrued Liabilities
Accrued Liabilities | 6 Months Ended |
Jun. 29, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consisted of the following (in thousands): June 29, 2019 December 29, 2018 Accrued compensation and benefits $ 16,374 $ 15,600 Accrued employee stock purchase plan contributions withheld 3,210 3,174 Accrued warranty 1,827 2,102 Accrued income and other taxes 5,080 4,222 Other accrued expenses 3,009 2,633 $ 29,500 $ 27,731 |
Fair Value and Derivative Instr
Fair Value and Derivative Instruments | 6 Months Ended |
Jun. 29, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value and Derivative Instruments | Fair Value and Derivative Instruments Whenever possible, the fair values of our financial assets and liabilities are determined using quoted market prices of identical securities or quoted market prices of similar securities from active markets. The three levels of inputs that may be used to measure fair value are as follows: • Level 1 valuations are obtained from real-time quotes for transactions in active exchange markets involving identical securities; • Level 2 valuations utilize significant observable inputs, such as quoted prices for similar assets or liabilities, quoted prices near the reporting date in markets that are less active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and • Level 3 valuations utilize unobservable inputs to the valuation methodology and include our own data about assumptions market participants would use in pricing the asset or liability based on the best information available under the circumstances. We did not have any transfers of assets or liabilities measured at fair value on a recurring basis to or from Level 1, Level 2 or Level 3 during the three and six months ended June 29, 2019 or the year ended December 29, 2018 . The carrying values of Cash, Accounts receivable, net, Restricted cash, Prepaid expenses and other current assets, Accounts payable, Accrued liabilities, and Term loan approximate fair value due to their short maturities. No changes were made to our valuation techniques during the first three and six months of fiscal 2019 . Assets and Liabilities Measured at Fair Value on a Recurring Basis Assets and liabilities measured at fair value on a recurring basis were as follows (in thousands): June 29, 2019 Level 1 Level 2 Total Assets: Cash equivalents: Money market funds $ 5,248 $ — $ 5,248 Commercial paper 324 — 324 5,572 — 5,572 Marketable securities: U.S. treasuries 17,072 — 17,072 Certificates of deposit — 540 540 U.S. agency securities — 14,299 14,299 Corporate bonds — 19,667 19,667 Commercial paper — 493 493 17,072 34,999 52,071 Foreign exchange derivative contracts — 5 5 Interest rate swap derivative contracts — 189 189 Total assets $ 22,644 $ 35,193 $ 57,837 Liabilities: Foreign exchange derivative contracts $ — $ 216 $ 216 December 29, 2018 Level 1 Level 2 Total Assets: Cash equivalents: Money market funds $ 1,184 $ — $ 1,184 Marketable securities: U.S. treasuries 7,997 — 7,997 Certificates of deposit — 957 957 U.S. agency securities — 8,608 8,608 Corporate bonds — 30,674 30,674 Commercial paper — 2,295 2,295 7,997 42,534 50,531 Interest rate swap derivative contracts — 871 871 Total assets $ 9,181 $ 43,405 $ 52,586 We did not have any liabilities measured at fair value on a recurring basis at December 29, 2018 . Cash Equivalents The fair value of our cash equivalents is determined based on quoted market prices for similar or identical securities. Marketable Securities We classify our marketable securities as available-for-sale and value them utilizing a market approach. Our investments are priced by pricing vendors who provide observable inputs for their pricing without applying significant judgment. Broker pricing is used mainly when a quoted price is not available, the investment is not priced by our pricing vendors or when a broker price is more reflective of fair value. Our broker-priced investments are categorized as Level 2 investments because fair value is based on similar assets without applying significant judgments. In addition, all investments have a sufficient trading volume to demonstrate that the fair value is appropriate. Unrealized gains and losses were immaterial and were recorded as a component of Accumulated other comprehensive income in our Condensed Consolidated Balance Sheets. We did not have any other-than-temporary unrealized gains or losses at either period end included in these financial statements. Interest Rate Swaps The fair value of our interest rate swap contracts are determined at the end of each reporting period based on valuation models that use interest rate yield curves as inputs. For accounting purposes, our interest rate swap contracts qualify for, and are designated as, cash flow hedges. The cash flows associated with the interest rate swaps are reported in Net cash provided by operating activities in our Condensed Consolidated Statements of Cash Flows and the fair value of the interest rate swap contracts are recorded within Prepaid expenses and other current assets and Other assets in our Condensed Consolidated Balance Sheets. The impact of the interest rate swaps on our Condensed Consolidated Statements of Income was as follows (in thousands): Amount of Gain or (Loss) Recognized in Accumulated OCI on Derivative Location of Gain or (Loss) Reclassified from Accumulated OCI into Income Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion) Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion ) Three Months Ended June 29, 2019 $ (62 ) Interest expense $ 175 Interest expense $ — Three Months Ended June 30, 2018 $ 101 Interest expense $ 186 Interest expense $ — Six Months Ended June 29, 2019 $ (90 ) Interest expense $ 383 Interest expense $ — Six Months Ended June 30, 2018 $ 356 Interest expense $ 318 Interest expense $ — Foreign Exchange Derivative Contracts We operate and sell our products in various global markets. As a result, we are exposed to changes in foreign currency exchange rates. We utilize foreign currency forward contracts to hedge against future movements in foreign exchange rates that affect certain existing foreign currency denominated assets and liabilities and forecasted foreign currency revenue and expense transactions. Under this program, our strategy is to have increases or decreases in our foreign currency exposures mitigated by gains or losses on the foreign currency forward contracts in order to mitigate the risks and volatility associated with foreign currency transaction gains or losses. We do not use derivative financial instruments for speculative or trading purposes. For accounting purposes, certain of our foreign currency forward contracts are not designated as hedging instruments and, accordingly, we record the fair value of these contracts as of the end of our reporting period in our Condensed Consolidated Balance Sheets with changes in fair value recorded within Other income (expense), net in our Condensed Consolidated Statement of Income for both realized and unrealized gains and losses. Certain of our foreign currency forward contracts are designated as cash flow hedges, and, accordingly, we record the fair value of these contracts as of the end of our reporting period in our Condensed Consolidated Balance Sheets with changes in fair value recorded as a component of accumulated other comprehensive income and reclassified into earnings in the same period in which the hedged transaction affects earnings, and in the same line item on the Condensed Consolidated Statements of Income as the impact of the hedge transaction. At June 29, 2019 , we expect to reclassify $0.2 million of the amount accumulated in other comprehensive income (loss) to earnings during the next 12 months, due to the recognition in earnings of the hedged forecasted transactions. The fair value of our foreign exchange derivative contracts was determined based on current foreign currency exchange rates and forward points. All of our foreign exchange derivative contracts outstanding at June 29, 2019 will mature in the first quarter of fiscal 2020. The following table provides information about our foreign currency forward contracts outstanding as of June 29, 2019 (in thousands): Currency Contract Position Contract Amount (Local Currency) Contract Amount (U.S. Dollars) Euro Dollar Buy (1,339 ) $ (1,262 ) Japanese Yen Sell 2,279,204 21,163 Korean Won Buy (2,531,829 ) (2,192 ) Total USD notional amount of outstanding foreign exchange contracts $ 17,709 Our foreign currency contracts are classified within Level 2 of the fair value hierarchy as they are valued using pricing models that utilize observable market inputs. The impact of foreign exchange derivative contracts not designated as cash flow hedges on our Condensed Consolidated Statements of Income was as follows (in thousands): Amount of Gain Recognized on Derivatives Three Months Ended Six Months Ended Derivatives Not Designated as Hedging Instruments Location of Gain Recognized on Derivatives June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Foreign exchange forward contracts Other expense, net $587 $1,079 $ 273 $ 217 The impact of foreign exchange derivative contracts designated as cash flow hedges on our Condensed Consolidated Statements of Income was as follows (in thousands): Amount of Loss Recognized in Accumulated OCI on Derivative Location of Loss Reclassified from Accumulated OCI into Income Amount of Loss Reclassified from Accumulated OCI into Income Three Months Ended June 29, 2019 $ 213 Cost of revenues $ 139 Research and development 12 Selling, general and administrative 32 $ 183 Three Months Ended June 30, 2018 $ — $ — Six Months Ended June 29, 2019 $ 213 Cost of revenues $ 171 Research and development 19 Selling, general and administrative 51 $ 241 Six Months Ended June 30, 2018 $ — $ — Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis We measure and report goodwill and intangible assets at fair value on a non-recurring basis if we determine these assets to be impaired or in the period when we make a business acquisition. There were no assets or liabilities measured at fair value on a nonrecurring basis during the three and six months ended June 29, 2019 or June 30, 2018 |
Restructuring Charges
Restructuring Charges | 6 Months Ended |
Jun. 29, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges Restructuring charges in the first two quarters of fiscal 2019 consisted of costs related to employee termination benefits, cost of long-lived asset abandonment and inventory write downs. Restructuring charges were included in our Consolidated Statement of Income as follows (in thousands): Three Months Ended Six Months Ended June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Cost of revenues $ 138 $ — $ 257 $ — Selling, general and administrative 88 — 175 — $ 226 $ — $ 432 $ — Changes to the restructuring accrual in the six months ended June 29, 2019 were as follows (in thousands): Employee Severance and Benefits Other Costs Total Accrual December 29, 2018 $ 20 $ — $ 20 Restructuring charges 162 270 432 Cash payments (73 ) — (73 ) Non-cash settlement — (270 ) (270 ) June 29, 2019 $ 109 $ — $ 109 |
Warranty
Warranty | 6 Months Ended |
Jun. 29, 2019 | |
Product Warranties Disclosures [Abstract] | |
Warranty | Warranty We offer warranties on certain products and record a liability for the estimated future costs associated with warranty claims at the time revenue is recognized. The warranty liability is based upon historical experience and our estimate of the level of future costs. While we engage in product quality programs and processes, our warranty obligation is affected by product failure rates, material usage and service delivery costs. We continuously monitor product returns for warranty and maintain a reserve for the related expenses based upon our historical experience and any specifically identified failures. As we sell new products to our customers, we must exercise considerable judgment in estimating the expected failure rates. This estimating process is based on historical experience of similar products, as well as various other assumptions that we believe to be reasonable under the circumstances. We provide for the estimated cost of product warranties at the time revenue is recognized as a component of Cost of revenues in our Condensed Consolidated Statement of Income. Changes in our warranty liability were as follows (in thousands): Six Months Ended June 29, June 30, Balance at beginning of period $ 2,102 $ 3,662 Accruals 1,648 2,868 Settlements (1,923 ) (3,681 ) Balance at end of period $ 1,827 $ 2,849 |
Stockholders_ Equity and Stock-
Stockholders’ Equity and Stock-Based Compensation | 6 Months Ended |
Jun. 29, 2019 | |
Equity [Abstract] | |
Stockholders’ Equity and Stock-Based Compensation | Stockholders’ Equity and Stock-Based Compensation Common Stock Repurchase Program In February 2017, our Board of Directors authorized a program to repurchase up to $25 million of outstanding common stock to offset potential dilution from issuances of common stock under our employee stock purchase plan and equity incentive plan. The share repurchase program will expire on February 1, 2020. Repurchased shares are retired upon the settlement of the related transactions with the excess of cost over par value charged to additional paid-in capital. All repurchases are made in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended. During the six months ended June 29, 2019 , we did not repurchase any shares. As of June 29, 2019 , $6.0 million remained available for future repurchases. Restricted Stock Units Restricted stock unit ("RSU") activity under our equity incentive plan was as follows: Units Weighted Average Grant Date Fair Value RSUs at December 29, 2018 3,102,226 $ 12.79 Awards granted 1,461,055 14.98 Awards vested (355,768 ) 9.91 Awards forfeited (82,370 ) 12.91 RSUs at June 29, 2019 4,125,143 13.81 The total fair value of RSUs vested during the six months ended June 29, 2019 was $6.0 million . Performance Restricted Stock Units We may grant Performance RSUs ("PRSUs") to certain executives, which vest based upon us achieving certain market performance criteria. On June 4, 2019, we granted a total of 273,000 PRSUs to certain senior executives for a total grant date fair value of $4.4 million , which will be recognized ratably over the requisite service period. The performance criteria are based on a metric called Total Shareholder Return ("TSR") for the period from July 1, 2019 to June 30, 2022, relative to the TSR of the companies identified as being part of the S&P Semiconductor Select Industry Index (FormFactor peer companies) as of June 29, 2019. There were no other PRSUs granted during the six months ending June 29, 2019. PRSUs are included as part of the RSU activity above. Stock Options Stock option activity under our equity incentive plan was as follows: Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Life in Years Aggregate Intrinsic Value Outstanding at December 29, 2018 524,725 $ 8.00 Options exercised (19,207 ) 4.69 Outstanding at June 29, 2019 505,518 $ 8.12 2.63 $ 3,815,874 Vested and expected to vest at June 29, 2019 505,518 $ 8.12 2.63 $ 3,815,874 Exercisable at June 29, 2019 505,518 $ 8.12 2.63 $ 3,815,874 Employee Stock Purchase Plan Information related to activity under our Employee Stock Purchase Plan ("ESPP") was as follows: Six Months Ended June 29, 2019 Shares issued 301,497 Weighted average per share purchase price $ 12.18 Weighted average per share discount from the fair value of our common stock on the date of issuance $ 4.85 Stock-Based Compensation Stock-based compensation was included in our Condensed Consolidated Statements of Income as follows (in thousands): Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, Cost of revenues $ 964 $ 813 $ 1,914 $ 1,733 Research and development 1,582 1,256 3,101 2,558 Selling, general and administrative 2,743 2,059 5,569 3,593 Total stock-based compensation $ 5,289 $ 4,128 $ 10,584 $ 7,884 Unrecognized Compensation Costs At June 29, 2019 , the unrecognized stock-based compensation was as follows (dollars in thousands): Unrecognized Expense Average Expected Recognition Period in Years Restricted stock units $ 32,804 2.27 Performance restricted stock units 8,623 2.38 Employee stock purchase plan 244 0.59 Total unrecognized stock-based compensation expense $ 41,671 2.29 |
Net Income per Share
Net Income per Share | 6 Months Ended |
Jun. 29, 2019 | |
Earnings Per Share [Abstract] | |
Net Income per Share | Net Income per Share The following table reconciles the shares used in calculating basic net income per share and diluted net income per share (in thousands): Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, Weighted-average shares used in computing basic net income per share 74,478 73,157 74,483 72,991 Add potentially dilutive securities 1,711 1,376 1,578 1,436 Weighted-average shares used in computing diluted net income per share 76,189 74,533 76,061 74,427 Securities not included as they would have been antidilutive 263 76 252 49 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 29, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases See Note 12. Contractual Commitments and Purchase Obligations Our purchase obligations and other contractual obligations have not materially changed as of June 29, 2019 from those disclosed in our Annual Report on Form 10-K for the year ended December 29, 2018 . Legal Matters From time to time, we may be subject to legal proceedings and claims in the ordinary course of business. As of June 29, 2019 |
Leases
Leases | 6 Months Ended |
Jun. 29, 2019 | |
Leases [Abstract] | |
Leases | Leases We lease real estate space under non-cancelable operating lease agreements for commercial and industrial space, as well as our corporate headquarters located in Livermore, California. Our leases have remaining terms of 1 to 9 years , and some leases include options to extend up to 20 years . We also have operating leases for automobiles with remaining lease terms of 1 to 4 years . We did not include any of our renewal options in our lease terms for calculating our lease liability as the renewal options allow us to maintain operational flexibility and we are not reasonably certain we will exercise these options at this time. The weighted-average remaining lease term for our operating leases was 8 years at June 29, 2019 and the weighted-average discount rate was 4.7% . The components of lease expense were as follows (in thousands): Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, Lease expense: Operating lease expense $ 1,734 $ — $ 3,479 $ — Short-term lease expense 31 — 48 — Variable lease expense 249 — 668 — $ 2,014 $ — $ 4,195 $ — Future minimum payments under our non-cancelable operating leases were as follows as of June 29, 2019 (in thousands): Fiscal Year Amount Remainder of 2019 $ 3,327 2020 6,717 2021 5,902 2022 4,897 2023 4,435 Thereafter 20,407 $ 45,685 |
Revenue
Revenue | 6 Months Ended |
Jun. 29, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Transaction price allocated to the remaining performance obligations: On June 29, 2019 , we had $3.8 million of remaining performance obligations, which were comprised of deferred service contracts and extended warranty contracts not yet delivered. We expect to recognize approximately 71% of our remaining performance obligations as revenue in the remainder of fiscal 2019, and approximately 29% in fiscal 2020 and thereafter. The foregoing excludes the value of other remaining performance obligations as they have original durations of one year or less, and also excludes information about variable consideration allocated entirely to a wholly unsatisfied performance obligation. Contract balances: The timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable is recorded at the invoiced amount, net of an allowance for doubtful accounts. A receivable is recognized in the period we deliver goods or provide services or when our right to consideration is unconditional. A contract asset is recorded when we have performed under the contract but our right to consideration is conditional on something other than the passage of time. Contract assets as of June 29, 2019 and December 29, 2018 were $0.9 million and $0.3 million , respectively, and are reported on the Condensed Consolidated Balance Sheets as a component of Prepaid expenses and other current assets. Contract liabilities include payments received in advance of performance under a contract and are satisfied as the associated revenue is recognized. Contract liabilities are reported on the Condensed Consolidated Balance Sheets on a contract-by-contract basis at the end of each reporting period as a component of Deferred revenue and Other liabilities. Contract liabilities as of June 29, 2019 and December 29, 2018 were $7.9 million and $5.7 million , respectively. During the three and six months ended June 29, 2019 , we recognized $0.9 million and $2.9 million of revenue, respectively, that was included in contract liabilities as of December 29, 2018 . Costs to obtain a contract: We generally expense sales commissions when incurred as a component of Selling, general and administrative expense as the amortization period is typically less than one year. Revenue by Category: |
Operating Segments and Enterpri
Operating Segments and Enterprise-Wide Information | 6 Months Ended |
Jun. 29, 2019 | |
Segment Reporting [Abstract] | |
Operating Segments and Enterprise-Wide Information | Operating Segments and Enterprise-Wide Information Our chief operating decision maker ("CODM") is our Chief Executive Officer, who reviews operating results to make decisions about allocating resources and assessing performance for the entire company. We operate in two reportable segments consisting of the Probe Cards segment and the Systems segment. The following table summarizes the operating results by reportable segment (dollars in thousands): Three Months Ended June 29, 2019 June 30, 2018 Probe Cards Systems Corporate and Other Total Probe Cards Systems Corporate and Other Total Revenues $ 113,637 $ 24,381 $ — $ 138,018 $ 111,586 $ 23,923 $ — $ 135,509 Gross profit $ 48,492 $ 12,672 $ (5,812 ) $ 55,352 $ 50,543 $ 11,626 $ (5,951 ) $ 56,218 Gross margin 42.7 % 52.0 % — % 40.1 % 45.3 % 48.6 % — % 41.5 % Six Months Ended June 29, 2019 June 30, 2018 Probe Cards Systems Corporate and Other Total Probe Cards Systems Corporate and Other Total Revenues $ 221,740 $ 48,491 $ — $ 270,231 $ 206,514 $ 47,285 $ — $ 253,799 Gross profit $ 93,785 $ 25,688 $ (11,600 ) $ 107,873 $ 90,614 $ 22,761 $ (12,028 ) $ 101,347 Gross margin 42.3 % 53.0 % — % 39.9 % 43.9 % 48.1 % — % 39.9 % Operating results provide useful information to our management for assessment of our performance and results of operations. Certain components of our operating results are utilized to determine executive compensation along with other measures. Corporate and Other includes unallocated expenses relating to amortization of intangible assets, share-based compensation, and restructuring charges, net, which are not used in evaluating the results of, or in allocating resources to, our reportable segments. Certain revenue category information by reportable segment was as follows (in thousands): Three Months Ended June 29, 2019 June 30, 2018 Probe Cards Systems Total Probe Cards Systems Total Market: Foundry & Logic $ 73,442 $ — $ 73,442 $ 62,111 $ — $ 62,111 DRAM 36,044 — 36,044 38,090 — 38,090 Flash 4,151 — 4,151 11,385 — 11,385 Systems — 24,381 24,381 — 23,923 23,923 Total $ 113,637 $ 24,381 $ 138,018 $ 111,586 $ 23,923 $ 135,509 Timing of revenue recognition: Products transferred at a point in time $ 113,028 $ 23,339 $ 136,367 $ 111,041 $ 22,966 $ 134,007 Services transferred over time 609 1,042 1,651 545 957 1,502 Total $ 113,637 $ 24,381 $ 138,018 $ 111,586 $ 23,923 $ 135,509 Geographical region: United States $ 32,072 $ 6,297 $ 38,369 $ 28,473 $ 4,757 $ 33,230 South Korea 27,360 811 28,171 24,187 1,805 25,992 China 16,304 4,051 20,355 11,035 3,578 14,613 Japan 12,867 3,226 16,093 10,833 2,710 13,543 Taiwan 12,826 2,046 14,872 26,858 3,152 30,010 Europe 4,474 6,174 10,648 4,109 5,410 9,519 Asia-Pacific 1 6,262 1,421 7,683 5,666 1,288 6,954 Rest of the world 1,472 355 1,827 425 1,223 1,648 Total $ 113,637 $ 24,381 $ 138,018 $ 111,586 $ 23,923 $ 135,509 Six Months Ended June 29, 2019 June 30, 2018 Probe Cards Systems Total Probe Cards Systems Total Market: Foundry & Logic $ 145,022 $ — $ 145,022 $ 120,549 $ — $ 120,549 DRAM 64,930 — 64,930 68,357 — 68,357 Flash 11,788 — 11,788 17,608 — 17,608 Systems — 48,491 48,491 — 47,285 47,285 Total $ 221,740 $ 48,491 $ 270,231 $ 206,514 $ 47,285 $ 253,799 Timing of revenue recognition: Products transferred at a point in time $ 220,519 $ 46,481 $ 267,000 $ 205,475 $ 45,372 $ 250,847 Services transferred over time 1,221 2,010 3,231 $ 1,039 $ 1,913 2,952 Total $ 221,740 $ 48,491 $ 270,231 $ 206,514 $ 47,285 $ 253,799 Geographical region: United States $ 59,727 $ 12,905 $ 72,632 $ 54,961 $ 11,132 $ 66,093 South Korea 52,378 2,516 54,894 $ 38,103 $ 2,879 40,982 China 34,455 7,743 42,198 20,062 6,825 26,887 Taiwan 34,083 3,176 37,259 $ 52,829 $ 4,903 57,732 Japan 18,167 8,358 26,525 $ 20,965 $ 6,250 27,215 Europe 9,847 10,294 20,141 $ 9,682 $ 11,339 21,021 Asia-Pacific 1 9,052 1,894 10,946 $ 9,156 $ 2,613 11,769 Rest of the world 4,031 1,605 5,636 $ 756 $ 1,344 2,100 Total $ 221,740 $ 48,491 $ 270,231 $ 206,514 $ 47,285 $ 253,799 1 Asia-Pacific includes all countries in the region except China, Japan, South Korea, and Taiwan, which are disclosed separately . |
Basis of Presentation and New_2
Basis of Presentation and New Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 29, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial information of FormFactor, Inc. is unaudited and has been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission. However, such information reflects all adjustments, consisting only of normal recurring adjustments, which are, in the opinion of management, necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods. The financial information as of December 29, 2018 is derived from our 2018 Annual Report on Form 10-K. The condensed consolidated financial statements included herein should be read in conjunction with the consolidated financial statements and the notes thereto included in our 2018 Annual Report on Form 10-K. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the full year. |
Fiscal Year | Fiscal Year We operate on a 52 / 53 week fiscal year, whereby the fiscal year ends on the last Saturday of December. Fiscal 2019 and 2018 each contain 52 weeks and the six months ended June 29, 2019 and June 30, 2018 each contained 26 weeks. Fiscal 2019 will end on December 28, 2019 . |
Reclassifications | Reclassifications Certain immaterial reclassifications were made to the prior period financial statements to conform to the current period presentation. |
New Accounting Pronouncements | New Accounting Pronouncements ASU 2018-15 In August 2018, the Financial Accounting Standard Board ("FASB") issued Accounting Standards Update ("ASU") 2018-15, " Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. " The new guidance clarifies the accounting for implementation costs in cloud computing arrangements. ASU 2018-15 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. ASU 2018-15 should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. We have not yet determined the impact of this standard on our financial statements. ASU 2016-02, ASU 2018-10, ASU 2018-11 and ASU 2019-01 In February 2016, the FASB issued ASU 2016-02, " Leases (Topic 842) ," which requires the recognition of right-of-use assets and lease liabilities for all long-term leases, including operating leases, on the balance sheet. ASU 2016-02 was amended in July 2018 by both ASU 2018-10, " Codification Improvements to Topic 842, Leases ," and ASU 2018-11, " Leases (Topic 842): Targeted Improvements " and in March 2019 by ASU 2019-01, " Leases (Topic 842): Codification Improvements. " ASU 2016-02 provides additional guidance on the measurement of the right-of-use assets and lease liabilities and requires enhanced disclosures about our leasing arrangements. We adopted Topic 842 and all related amendments on December 30, 2018, the first day of fiscal 2019, using the modified transition approach. The modified transition approach permits a company to use its effective date as the date of initial application to apply the standard to its leases, and, therefore, not restate comparative prior period financial information. Consequently, prior period financial information is not updated, and the disclosures required under the new standard will not be provided for dates and periods before December 30, 2018. The standard provides several optional practical expedients in transition. We elected the ‘package of practical expedients,’ which permits us to not reassess, under the new standard, our prior conclusions about lease identification, lease classification and initial direct costs. We did not elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter not being applicable to us. The new standard also provides practical expedients for an entity’s ongoing accounting. We elected the short-term lease recognition exemption. This means, for those leases that qualify, we will not recognize a right-of-use asset or lease liability, and this includes not recognizing right-of-use assets or lease liabilities for existing short-term leases of those assets in transition. We also elected the practical expedient to not separate lease and non-lease components for all our leases. The adoption of the lease standard did not have any effect on our previously reported Condensed |
Fair Value Policy | Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis Whenever possible, the fair values of our financial assets and liabilities are determined using quoted market prices of identical securities or quoted market prices of similar securities from active markets. The three levels of inputs that may be used to measure fair value are as follows: • Level 1 valuations are obtained from real-time quotes for transactions in active exchange markets involving identical securities; • Level 2 valuations utilize significant observable inputs, such as quoted prices for similar assets or liabilities, quoted prices near the reporting date in markets that are less active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and • Level 3 valuations utilize unobservable inputs to the valuation methodology and include our own data about assumptions market participants would use in pricing the asset or liability based on the best information available under the circumstances. We did not have any transfers of assets or liabilities measured at fair value on a recurring basis to or from Level 1, Level 2 or Level 3 during the three and six months ended June 29, 2019 or the year ended December 29, 2018 . The carrying values of Cash, Accounts receivable, net, Restricted cash, Prepaid expenses and other current assets, Accounts payable, Accrued liabilities, and Term loan approximate fair value due to their short maturities. No changes were made to our valuation techniques during the first three and six months of fiscal 2019 . |
Concentration of Credit and O_2
Concentration of Credit and Other Risks (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Risks and Uncertainties [Abstract] | |
Schedule of Customer Percentage of Revenue | Each of the following customers accounted for 10% or more of our revenues for the periods indicated: Three Months Ended Six Months Ended June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Intel Corporation 26.1 % 15.1 % 23.8 % 14.6 % Samsung Electronics., LTD. 11.1 * 12.4 * Micron Technology, Inc. 10.1 * * * SK Hynix Inc. * 11.5 * 10.9 47.3 % 26.6 % 36.2 % 25.5 % |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory Components | Inventories, net, consisted of the following (in thousands): June 29, December 29, Raw materials $ 43,143 $ 43,380 Work-in-progress 26,022 20,431 Finished goods 14,687 13,895 $ 83,852 $ 77,706 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill by Reportable Segments | Goodwill by reportable segment was as follows (in thousands): Probe Cards Systems Total Goodwill, gross, as of December 30, 2017 $ 172,482 $ 17,438 $ 189,920 Foreign currency translation — (706 ) (706 ) Goodwill, gross, as of December 29, 2018 172,482 16,732 189,214 Foreign currency translation — (93 ) (93 ) Goodwill, gross, as of June 29, 2019 $ 172,482 $ 16,639 $ 189,121 |
Schedule of Intangible Assets | Intangible assets were as follows (in thousands): June 29, 2019 December 29, 2018 Other Intangible Assets Gross Accumulated Amortization Net Gross Accumulated Amortization Net Existing developed technologies $ 143,334 $ 106,513 $ 36,821 $ 143,408 $ 97,111 $ 46,297 Trade name 12,014 11,256 758 12,023 9,173 2,850 Customer relationships 40,123 24,298 15,825 40,146 21,653 18,493 $ 195,471 $ 142,067 $ 53,404 $ 195,577 $ 127,937 $ 67,640 |
Schedule of Amortization Expense | Amortization expense was included in our Condensed Consolidated Statements of Income as follows (in thousands): Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, Cost of revenues $ 4,711 $ 5,138 $ 9,430 $ 10,295 Selling, general and administrative 2,368 2,032 4,739 4,069 $ 7,079 $ 7,170 $ 14,169 $ 14,364 |
Schedule of Estimated Amortization of Intangible Assets | The estimated future amortization of intangible assets is as follows (in thousands): Fiscal Year Amount Remainder of 2019 $ 12,189 2020 23,358 2021 12,616 2022 3,493 2023 1,748 $ 53,404 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | Accrued liabilities consisted of the following (in thousands): June 29, 2019 December 29, 2018 Accrued compensation and benefits $ 16,374 $ 15,600 Accrued employee stock purchase plan contributions withheld 3,210 3,174 Accrued warranty 1,827 2,102 Accrued income and other taxes 5,080 4,222 Other accrued expenses 3,009 2,633 $ 29,500 $ 27,731 |
Fair Value and Derivative Ins_2
Fair Value and Derivative Instruments (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Assets Measured on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis were as follows (in thousands): June 29, 2019 Level 1 Level 2 Total Assets: Cash equivalents: Money market funds $ 5,248 $ — $ 5,248 Commercial paper 324 — 324 5,572 — 5,572 Marketable securities: U.S. treasuries 17,072 — 17,072 Certificates of deposit — 540 540 U.S. agency securities — 14,299 14,299 Corporate bonds — 19,667 19,667 Commercial paper — 493 493 17,072 34,999 52,071 Foreign exchange derivative contracts — 5 5 Interest rate swap derivative contracts — 189 189 Total assets $ 22,644 $ 35,193 $ 57,837 Liabilities: Foreign exchange derivative contracts $ — $ 216 $ 216 December 29, 2018 Level 1 Level 2 Total Assets: Cash equivalents: Money market funds $ 1,184 $ — $ 1,184 Marketable securities: U.S. treasuries 7,997 — 7,997 Certificates of deposit — 957 957 U.S. agency securities — 8,608 8,608 Corporate bonds — 30,674 30,674 Commercial paper — 2,295 2,295 7,997 42,534 50,531 Interest rate swap derivative contracts — 871 871 Total assets $ 9,181 $ 43,405 $ 52,586 |
Schedule of the Impact of Cash Flow Hedges on Consolidated Financial Statements | The impact of the interest rate swaps on our Condensed Consolidated Statements of Income was as follows (in thousands): Amount of Gain or (Loss) Recognized in Accumulated OCI on Derivative Location of Gain or (Loss) Reclassified from Accumulated OCI into Income Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion) Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion ) Three Months Ended June 29, 2019 $ (62 ) Interest expense $ 175 Interest expense $ — Three Months Ended June 30, 2018 $ 101 Interest expense $ 186 Interest expense $ — Six Months Ended June 29, 2019 $ (90 ) Interest expense $ 383 Interest expense $ — Six Months Ended June 30, 2018 $ 356 Interest expense $ 318 Interest expense $ — |
Schedule of Foreign Currency Forward Contracts | The following table provides information about our foreign currency forward contracts outstanding as of June 29, 2019 (in thousands): Currency Contract Position Contract Amount (Local Currency) Contract Amount (U.S. Dollars) Euro Dollar Buy (1,339 ) $ (1,262 ) Japanese Yen Sell 2,279,204 21,163 Korean Won Buy (2,531,829 ) (2,192 ) Total USD notional amount of outstanding foreign exchange contracts $ 17,709 The impact of foreign exchange derivative contracts designated as cash flow hedges on our Condensed Consolidated Statements of Income was as follows (in thousands): Amount of Loss Recognized in Accumulated OCI on Derivative Location of Loss Reclassified from Accumulated OCI into Income Amount of Loss Reclassified from Accumulated OCI into Income Three Months Ended June 29, 2019 $ 213 Cost of revenues $ 139 Research and development 12 Selling, general and administrative 32 $ 183 Three Months Ended June 30, 2018 $ — $ — Six Months Ended June 29, 2019 $ 213 Cost of revenues $ 171 Research and development 19 Selling, general and administrative 51 $ 241 Six Months Ended June 30, 2018 $ — $ — |
Schedule of Gains and Losses Related to Non-designated Derivative Instruments | The impact of foreign exchange derivative contracts not designated as cash flow hedges on our Condensed Consolidated Statements of Income was as follows (in thousands): Amount of Gain Recognized on Derivatives Three Months Ended Six Months Ended Derivatives Not Designated as Hedging Instruments Location of Gain Recognized on Derivatives June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Foreign exchange forward contracts Other expense, net $587 $1,079 $ 273 $ 217 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring charges were included in our Consolidated Statement of Income as follows (in thousands): Three Months Ended Six Months Ended June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Cost of revenues $ 138 $ — $ 257 $ — Selling, general and administrative 88 — 175 — $ 226 $ — $ 432 $ — |
Schedule of Restructuring Accrual Activity | Changes to the restructuring accrual in the six months ended June 29, 2019 were as follows (in thousands): Employee Severance and Benefits Other Costs Total Accrual December 29, 2018 $ 20 $ — $ 20 Restructuring charges 162 270 432 Cash payments (73 ) — (73 ) Non-cash settlement — (270 ) (270 ) June 29, 2019 $ 109 $ — $ 109 |
Warranty (Tables)
Warranty (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Product Warranties Disclosures [Abstract] | |
Reconciliation of Changes in Warranty Liability | Changes in our warranty liability were as follows (in thousands): Six Months Ended June 29, June 30, Balance at beginning of period $ 2,102 $ 3,662 Accruals 1,648 2,868 Settlements (1,923 ) (3,681 ) Balance at end of period $ 1,827 $ 2,849 |
Stockholders_ Equity and Stoc_2
Stockholders’ Equity and Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Equity [Abstract] | |
Schedule of Restricted Stock Unit Activity | Restricted stock unit ("RSU") activity under our equity incentive plan was as follows: Units Weighted Average Grant Date Fair Value RSUs at December 29, 2018 3,102,226 $ 12.79 Awards granted 1,461,055 14.98 Awards vested (355,768 ) 9.91 Awards forfeited (82,370 ) 12.91 RSUs at June 29, 2019 4,125,143 13.81 |
Schedule of Stock Option Activity | Stock option activity under our equity incentive plan was as follows: Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Life in Years Aggregate Intrinsic Value Outstanding at December 29, 2018 524,725 $ 8.00 Options exercised (19,207 ) 4.69 Outstanding at June 29, 2019 505,518 $ 8.12 2.63 $ 3,815,874 Vested and expected to vest at June 29, 2019 505,518 $ 8.12 2.63 $ 3,815,874 Exercisable at June 29, 2019 505,518 $ 8.12 2.63 $ 3,815,874 |
Schedule of ESPP Activity | Information related to activity under our Employee Stock Purchase Plan ("ESPP") was as follows: Six Months Ended June 29, 2019 Shares issued 301,497 Weighted average per share purchase price $ 12.18 Weighted average per share discount from the fair value of our common stock on the date of issuance $ 4.85 |
Schedule of Stock-based Compensation | Stock-based compensation was included in our Condensed Consolidated Statements of Income as follows (in thousands): Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, Cost of revenues $ 964 $ 813 $ 1,914 $ 1,733 Research and development 1,582 1,256 3,101 2,558 Selling, general and administrative 2,743 2,059 5,569 3,593 Total stock-based compensation $ 5,289 $ 4,128 $ 10,584 $ 7,884 |
Schedule of Unrecognized Stock-based Compensation | At June 29, 2019 , the unrecognized stock-based compensation was as follows (dollars in thousands): Unrecognized Expense Average Expected Recognition Period in Years Restricted stock units $ 32,804 2.27 Performance restricted stock units 8,623 2.38 Employee stock purchase plan 244 0.59 Total unrecognized stock-based compensation expense $ 41,671 2.29 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | The following table reconciles the shares used in calculating basic net income per share and diluted net income per share (in thousands): Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, Weighted-average shares used in computing basic net income per share 74,478 73,157 74,483 72,991 Add potentially dilutive securities 1,711 1,376 1,578 1,436 Weighted-average shares used in computing diluted net income per share 76,189 74,533 76,061 74,427 Securities not included as they would have been antidilutive 263 76 252 49 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense were as follows (in thousands): Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, Lease expense: Operating lease expense $ 1,734 $ — $ 3,479 $ — Short-term lease expense 31 — 48 — Variable lease expense 249 — 668 — $ 2,014 $ — $ 4,195 $ — |
Schedule of Future Minimum Payments Under Leases | Future minimum payments under our non-cancelable operating leases were as follows as of June 29, 2019 (in thousands): Fiscal Year Amount Remainder of 2019 $ 3,327 2020 6,717 2021 5,902 2022 4,897 2023 4,435 Thereafter 20,407 $ 45,685 |
Operating Segments and Enterp_2
Operating Segments and Enterprise-Wide Information (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Operating Results by Segment | The following table summarizes the operating results by reportable segment (dollars in thousands): Three Months Ended June 29, 2019 June 30, 2018 Probe Cards Systems Corporate and Other Total Probe Cards Systems Corporate and Other Total Revenues $ 113,637 $ 24,381 $ — $ 138,018 $ 111,586 $ 23,923 $ — $ 135,509 Gross profit $ 48,492 $ 12,672 $ (5,812 ) $ 55,352 $ 50,543 $ 11,626 $ (5,951 ) $ 56,218 Gross margin 42.7 % 52.0 % — % 40.1 % 45.3 % 48.6 % — % 41.5 % Six Months Ended June 29, 2019 June 30, 2018 Probe Cards Systems Corporate and Other Total Probe Cards Systems Corporate and Other Total Revenues $ 221,740 $ 48,491 $ — $ 270,231 $ 206,514 $ 47,285 $ — $ 253,799 Gross profit $ 93,785 $ 25,688 $ (11,600 ) $ 107,873 $ 90,614 $ 22,761 $ (12,028 ) $ 101,347 Gross margin 42.3 % 53.0 % — % 39.9 % 43.9 % 48.1 % — % 39.9 % |
Disaggregation of Revenue by Segment | Certain revenue category information by reportable segment was as follows (in thousands): Three Months Ended June 29, 2019 June 30, 2018 Probe Cards Systems Total Probe Cards Systems Total Market: Foundry & Logic $ 73,442 $ — $ 73,442 $ 62,111 $ — $ 62,111 DRAM 36,044 — 36,044 38,090 — 38,090 Flash 4,151 — 4,151 11,385 — 11,385 Systems — 24,381 24,381 — 23,923 23,923 Total $ 113,637 $ 24,381 $ 138,018 $ 111,586 $ 23,923 $ 135,509 Timing of revenue recognition: Products transferred at a point in time $ 113,028 $ 23,339 $ 136,367 $ 111,041 $ 22,966 $ 134,007 Services transferred over time 609 1,042 1,651 545 957 1,502 Total $ 113,637 $ 24,381 $ 138,018 $ 111,586 $ 23,923 $ 135,509 Geographical region: United States $ 32,072 $ 6,297 $ 38,369 $ 28,473 $ 4,757 $ 33,230 South Korea 27,360 811 28,171 24,187 1,805 25,992 China 16,304 4,051 20,355 11,035 3,578 14,613 Japan 12,867 3,226 16,093 10,833 2,710 13,543 Taiwan 12,826 2,046 14,872 26,858 3,152 30,010 Europe 4,474 6,174 10,648 4,109 5,410 9,519 Asia-Pacific 1 6,262 1,421 7,683 5,666 1,288 6,954 Rest of the world 1,472 355 1,827 425 1,223 1,648 Total $ 113,637 $ 24,381 $ 138,018 $ 111,586 $ 23,923 $ 135,509 Six Months Ended June 29, 2019 June 30, 2018 Probe Cards Systems Total Probe Cards Systems Total Market: Foundry & Logic $ 145,022 $ — $ 145,022 $ 120,549 $ — $ 120,549 DRAM 64,930 — 64,930 68,357 — 68,357 Flash 11,788 — 11,788 17,608 — 17,608 Systems — 48,491 48,491 — 47,285 47,285 Total $ 221,740 $ 48,491 $ 270,231 $ 206,514 $ 47,285 $ 253,799 Timing of revenue recognition: Products transferred at a point in time $ 220,519 $ 46,481 $ 267,000 $ 205,475 $ 45,372 $ 250,847 Services transferred over time 1,221 2,010 3,231 $ 1,039 $ 1,913 2,952 Total $ 221,740 $ 48,491 $ 270,231 $ 206,514 $ 47,285 $ 253,799 Geographical region: United States $ 59,727 $ 12,905 $ 72,632 $ 54,961 $ 11,132 $ 66,093 South Korea 52,378 2,516 54,894 $ 38,103 $ 2,879 40,982 China 34,455 7,743 42,198 20,062 6,825 26,887 Taiwan 34,083 3,176 37,259 $ 52,829 $ 4,903 57,732 Japan 18,167 8,358 26,525 $ 20,965 $ 6,250 27,215 Europe 9,847 10,294 20,141 $ 9,682 $ 11,339 21,021 Asia-Pacific 1 9,052 1,894 10,946 $ 9,156 $ 2,613 11,769 Rest of the world 4,031 1,605 5,636 $ 756 $ 1,344 2,100 Total $ 221,740 $ 48,491 $ 270,231 $ 206,514 $ 47,285 $ 253,799 1 Asia-Pacific includes all countries in the region except China, Japan, South Korea, and Taiwan, which are disclosed separately . |
Basis of Presentation and New_3
Basis of Presentation and New Accounting Pronouncements - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 29, 2019 | Dec. 28, 2019 | Jun. 29, 2019 | Dec. 26, 2020 | Dec. 29, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Performance obligations | $ 3.8 | $ 3.8 | |||
Contract assets | 0.9 | 0.9 | $ 0.3 | ||
Contract liabilities | 7.9 | 7.9 | $ 5.7 | ||
Revenue recognized included in contracts | $ 0.9 | $ 2.9 | |||
Forecast | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Expected to be recognized | 71.00% | 29.00% |
Basis of Presentation and New_4
Basis of Presentation and New Accounting Pronouncements - ASU 2016-18 Information (Details) - USD ($) $ in Thousands | Jun. 29, 2019 | Dec. 29, 2018 | Jun. 30, 2018 | Dec. 30, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents as previously reported in the Condensed Consolidated Statements of Cash Flows | $ 124,810 | $ 98,472 | ||
Current assets - Restricted cash | 818 | 849 | ||
Restricted cash | 1,066 | 1,225 | ||
Cash, cash equivalents and restricted cash as currently reported in the Condensed Consolidated Statements of Cash Flows | $ 126,694 | $ 100,546 | $ 96,815 | $ 92,726 |
Concentration of Credit and O_3
Concentration of Credit and Other Risks (Details) - Customer Concentration Risk | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | Dec. 29, 2018 | |
Revenue from Contract with Customer Benchmark | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 47.30% | 26.60% | 36.20% | 25.50% | |
Revenue from Contract with Customer Benchmark | Intel Corporation | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 26.10% | 15.10% | 23.80% | 14.60% | |
Revenue from Contract with Customer Benchmark | Samsung Electronics., LTD. | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 11.10% | 12.40% | |||
Revenue from Contract with Customer Benchmark | Micron Technology, Inc. | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 10.10% | ||||
Revenue from Contract with Customer Benchmark | SK Hynix Inc. | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 11.50% | 10.90% | |||
Accounts Receivable | Major Customer 1 | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 17.30% | 27.80% | |||
Accounts Receivable | Major Customer 2 | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 11.30% | 13.00% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 29, 2019 | Dec. 29, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 43,143 | $ 43,380 |
Work-in-progress | 26,022 | 20,431 |
Finished goods | 14,687 | 13,895 |
Inventories | $ 83,852 | $ 77,706 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 29, 2019 | Dec. 29, 2018 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 189,214,000 | $ 189,920,000 |
Foreign currency translation | (93,000) | (706,000) |
Goodwill, ending balance | 189,121,000 | 189,214,000 |
Goodwill impairment | 0 | |
Probe Cards | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 172,482,000 | 172,482,000 |
Foreign currency translation | 0 | 0 |
Goodwill, ending balance | 172,482,000 | 172,482,000 |
Systems | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 16,732,000 | 17,438,000 |
Foreign currency translation | (93,000) | (706,000) |
Goodwill, ending balance | $ 16,639,000 | $ 16,732,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 29, 2019 | Dec. 29, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross | $ 195,471 | $ 195,577 |
Accumulated Amortization | 142,067 | 127,937 |
Intangible Assets, Net | 53,404 | 67,640 |
Existing developed technologies | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross | 143,334 | 143,408 |
Accumulated Amortization | 106,513 | 97,111 |
Intangible Assets, Net | 36,821 | 46,297 |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross | 12,014 | 12,023 |
Accumulated Amortization | 11,256 | 9,173 |
Intangible Assets, Net | 758 | 2,850 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross | 40,123 | 40,146 |
Accumulated Amortization | 24,298 | 21,653 |
Intangible Assets, Net | $ 15,825 | $ 18,493 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | Dec. 29, 2018 | |
Property, Plant and Equipment [Line Items] | |||||
Amortization of intangible assets | $ 7,079 | $ 7,170 | $ 14,169 | $ 14,364 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Rolling Maturity [Abstract] | |||||
Remainder of 2019 | 12,189 | 12,189 | |||
2019 | 23,358 | 23,358 | |||
2020 | 12,616 | 12,616 | |||
2021 | 3,493 | 3,493 | |||
2022 | 1,748 | 1,748 | |||
Intangible Assets, Net | 53,404 | 53,404 | $ 67,640 | ||
Cost of revenues | |||||
Property, Plant and Equipment [Line Items] | |||||
Amortization of intangible assets | 4,711 | 5,138 | 9,430 | 10,295 | |
Selling, general and administrative | |||||
Property, Plant and Equipment [Line Items] | |||||
Amortization of intangible assets | $ 2,368 | $ 2,032 | $ 4,739 | $ 4,069 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 29, 2019 | Dec. 29, 2018 |
Payables and Accruals [Abstract] | ||
Accrued compensation and benefits | $ 16,374 | $ 15,600 |
Accrued warranty | 3,210 | 3,174 |
Accrued employee stock purchase plan contributions withheld | 1,827 | 2,102 |
Accrued income and other taxes | 5,080 | 4,222 |
Other accrued expenses | 3,009 | 2,633 |
Accrued liabilities | $ 29,500 | $ 27,731 |
Fair Value and Derivative Ins_3
Fair Value and Derivative Instruments - Fair Value Assets Measured on Recurring Basis (Details) - USD ($) | Jun. 29, 2019 | Dec. 29, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | $ 5,572,000 | |
Marketable securities | 52,071,000 | |
Total assets measured at fair value | 57,837,000 | $ 52,586,000 |
Derivative Liability | 216,000 | |
Liabilities measured at fair value on recurring basis | 0 | |
Interest rate swap derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative contracts | 189,000 | 871,000 |
Foreign exchange derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 50,531,000 | |
Derivative contracts | 5,000 | |
Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 5,248,000 | |
Corporate Bond Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 1,184,000 | |
Marketable securities | 30,674,000 | |
US Treasury Bill Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 17,072,000 | |
Certificates of deposit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 540,000 | 7,997,000 |
U.S. agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 14,299,000 | 957,000 |
Agency Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 8,608,000 | |
Corporate bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 19,667,000 | |
Commercial paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 324,000 | |
Marketable securities | 493,000 | 2,295,000 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 5,572,000 | |
Marketable securities | 17,072,000 | |
Total assets measured at fair value | 22,644,000 | 9,181,000 |
Derivative Liability | 0 | |
Level 1 | Interest rate swap derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative contracts | 0 | 0 |
Level 1 | Foreign exchange derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 7,997,000 | |
Derivative contracts | 0 | |
Level 1 | Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 5,248,000 | |
Level 1 | Corporate Bond Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 1,184,000 | |
Marketable securities | 0 | |
Level 1 | US Treasury Bill Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 17,072,000 | |
Level 1 | Certificates of deposit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 0 | 7,997,000 |
Level 1 | U.S. agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 0 | 0 |
Level 1 | Agency Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 0 | |
Level 1 | Corporate bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 0 | |
Level 1 | Commercial paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 324,000 | |
Marketable securities | 0 | 0 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | |
Marketable securities | 34,999,000 | |
Total assets measured at fair value | 35,193,000 | 43,405,000 |
Derivative Liability | 216,000 | |
Level 2 | Foreign exchange derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative contracts | 5,000 | |
Level 2 | Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | |
Level 2 | Corporate Bond Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | |
Marketable securities | 30,674,000 | |
Level 2 | US Treasury Bill Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 0 | |
Level 2 | Certificates of deposit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 540,000 | 0 |
Level 2 | U.S. agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 14,299,000 | 957,000 |
Level 2 | Agency Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 8,608,000 | |
Level 2 | Corporate bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 19,667,000 | |
Level 2 | Commercial paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | |
Marketable securities | 493,000 | 2,295,000 |
Designated as Hedging Instrument | Interest rate swap derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative contracts | $ 189,000 | |
Designated as Hedging Instrument | Level 2 | Interest rate swap derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative contracts | 871,000 | |
Designated as Hedging Instrument | Level 2 | Foreign exchange derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | $ 42,534,000 |
Restructuring Charges - Restruc
Restructuring Charges - Restructuring Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 226 | $ 0 | $ 432 | $ 0 |
Cost of revenues | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 138 | 0 | 257 | 0 |
Selling, general and administrative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 88 | $ 0 | $ 175 | $ 0 |
Fair Value and Derivative Ins_4
Fair Value and Derivative Instruments - Impact of Cash Flow Hedges and Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | Dec. 29, 2018 | |
Interest Rate Contracts | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative asset | $ 189 | $ 189 | $ 871 | ||
Designated as Hedging Instrument | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | $ 0 | $ 0 | |||
Designated as Hedging Instrument | Interest Rate Contracts | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative asset | 189 | 189 | |||
Designated as Hedging Instrument | Interest Rate Contracts | Cash Flow Hedging | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) | (62) | 101 | (90) | 356 | |
Designated as Hedging Instrument | Interest Rate Contracts | Cash Flow Hedging | Other Income (Expense), Net [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | $ 175 | $ 186 | $ 383 | $ 318 |
Restructuring Charges - Changes
Restructuring Charges - Changes to the Restructuring Accrual (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Restructuring Reserve [Roll Forward] | ||||
Accrual at beginning of period | $ 20 | |||
Restructuring charges | $ 226 | $ 0 | 432 | $ 0 |
Cash payments | (73) | |||
Non-cash settlement | (270) | |||
Accrual at end of period | 109 | 109 | ||
Employee Severance and Benefits | ||||
Restructuring Reserve [Roll Forward] | ||||
Accrual at beginning of period | 20 | |||
Restructuring charges | 162 | |||
Cash payments | (73) | |||
Non-cash settlement | 0 | |||
Accrual at end of period | 109 | 109 | ||
Other Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Accrual at beginning of period | 0 | |||
Restructuring charges | 270 | |||
Non-cash settlement | (270) | |||
Accrual at end of period | $ 0 | $ 0 |
Fair Value and Derivative Ins_5
Fair Value and Derivative Instruments - Foreign Currency Forward Contracts (Details) - 6 months ended Jun. 29, 2019 $ in Thousands, $ in Thousands | USD ($) | TWD ($) | USD ($) |
Derivative [Line Items] | |||
Amount expected to be reclassified | $ 200 | ||
Derivatives Not Designated as Hedging Instruments | |||
Derivative [Line Items] | |||
Contract amount (in various currencies) | $ 17,709 | ||
Buy | Euro Dollar | Derivatives Not Designated as Hedging Instruments | |||
Derivative [Line Items] | |||
Contract amount (in various currencies) | $ 1,339 | 1,262 | |
Buy | Korean Won | Derivatives Not Designated as Hedging Instruments | |||
Derivative [Line Items] | |||
Contract amount (in various currencies) | 2,531,829 | 2,192 | |
Sell | Japanese Yen | Derivatives Not Designated as Hedging Instruments | |||
Derivative [Line Items] | |||
Contract amount (in various currencies) | $ 2,279,204 | $ 21,163 |
Fair Value and Derivative Ins_6
Fair Value and Derivative Instruments - Gains and Losses Related to Non-designated Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Derivatives, Fair Value [Line Items] | ||||
Document Period End Date | Jun. 29, 2019 | |||
Derivatives Not Designated as Hedging Instruments | Derivatives Not Designated as Hedging Instruments | Location of Gain Recognized on Derivatives | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivatives Not Designated as Hedging Instruments | $ 587 | $ 1,079 | $ 273 | $ 217 |
Fair Value and Derivative Ins_7
Fair Value and Derivative Instruments - Assets Measured at Fair Value on a Non-Recurring Basis (Details) - USD ($) | Jun. 29, 2019 | Dec. 29, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities measured at fair value on recurring basis | $ 0 | |
Assets measured at fair value on non-recurring basis | $ 57,837,000 | 52,586,000 |
Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on non-recurring basis | $ 0 | $ 0 |
Fair Value and Derivative Ins_8
Fair Value and Derivative Instruments - Impact of Foreign Exchange Derivattive Contracts Designated as Cash Flow Hedges (Details) - Designated as Hedging Instrument - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | $ 0 | $ 0 | ||
Derivatives Not Designated as Hedging Instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) | $ 213 | $ 0 | $ 213 | $ 0 |
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 183 | 241 | ||
Derivatives Not Designated as Hedging Instruments | Cost of revenues | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 139 | 171 | ||
Derivatives Not Designated as Hedging Instruments | Research and development | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 12 | 19 | ||
Derivatives Not Designated as Hedging Instruments | Selling, general and administrative | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | $ 32 | $ 51 |
Warranty (Details)
Warranty (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 29, 2019 | Jun. 30, 2018 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Balance at beginning of period | $ 2,102 | $ 3,662 |
Accruals | 1,648 | 2,868 |
Settlements | (1,923) | (3,681) |
Balance at end of period | $ 1,827 | $ 2,849 |
Stockholders_ Equity and Stoc_3
Stockholders’ Equity and Stock-Based Compensation - Additional Information (Details) - USD ($) | Jun. 04, 2019 | Jun. 29, 2019 | Feb. 28, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Amount remaining for future repurchases | $ 6,000,000 | ||
Equity Incentive Plan | Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total fair value of restricted stock units vested during the period | $ 6,000,000 | ||
Awards granted (in shares) | 1,461,055 | ||
Equity Incentive Plan | PRSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards granted (in shares) | 273,000 | ||
Awards granted, fair value | $ 4,400,000 | ||
Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock repurchase program authorized amount | $ 25,000,000 |
Stockholders_ Equity and Stoc_4
Stockholders’ Equity and Stock-Based Compensation - Restricted Stock Unit Activity (Details) - Equity Incentive Plan - Restricted Stock Units | 6 Months Ended |
Jun. 29, 2019$ / sharesshares | |
Units | |
Beginning balance (in shares) | shares | 3,102,226 |
Awards granted (in shares) | shares | 1,461,055 |
Awards vested (in shares) | shares | (355,768) |
Awards canceled (in shares) | shares | (82,370) |
Ending balance (in shares) | shares | 4,125,143 |
Weighted Average Grant Date Fair Value | |
Beginning Balance (in dollars per share) | $ / shares | $ 12.79 |
Awards granted (in dollars per share) | $ / shares | 14.98 |
Awards vested (in dollars per share) | $ / shares | 9.91 |
Awards canceled (in dollars per share) | $ / shares | 12.91 |
Ending Balance (in dollars per share) | $ / shares | $ 13.81 |
Stockholders_ Equity and Stoc_5
Stockholders’ Equity and Stock-Based Compensation - Stock Option Activity (Details) - Equity Incentive Plan $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 29, 2019USD ($)$ / sharesshares | |
Options Outstanding | |
Outstanding, beginning of period (In shares) | shares | 524,725 |
Options exercised (In shares) | shares | (19,207) |
Outstanding, end of period (In shares) | shares | 505,518 |
Exercisable (In shares) | shares | 505,518 |
Weighted Average Exercise Price | |
Outstanding, beginning of period (In dollars per share) | $ / shares | $ 8 |
Options exercised (In dollars per share) | $ / shares | 4.69 |
Outstanding, end of period (In dollars per share) | $ / shares | 8.12 |
Exercisable (In dollars per share) | $ / shares | $ 8.12 |
Additional Disclosures | |
Outstanding, weighted average remaining contractual life | 2 years 7 months 17 days |
Exercisable, weighted average remaining contractual life | 2 years 7 months 17 days |
Outstanding, aggregate intrinsic value | $ | $ 3,815,874 |
Exercisable, aggregate intrinsic value | $ | $ 3,815,874 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | shares | 505,518 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ / shares | $ 8.12 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 2 years 7 months 17 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ | $ 3,815,874 |
Stockholders_ Equity and Stoc_6
Stockholders’ Equity and Stock-Based Compensation - ESPP Activity (Details) - Employee stock purchase plan | 6 Months Ended |
Jun. 29, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares issued under ESPP (In shares) | shares | 301,497 |
Weighted average per share purchase price (in dollars per share) | $ 12.18 |
Weighted average per share discount from the fair value of our common stock on the date of issuance (in dollars per share) | $ 4.85 |
Stockholders_ Equity and Stoc_7
Stockholders’ Equity and Stock-Based Compensation - Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | $ 5,289 | $ 4,128 | $ 10,584 | $ 7,884 |
Cost of revenues | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | 964 | 813 | 1,914 | 1,733 |
Research and development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | 1,582 | 1,256 | 3,101 | 2,558 |
Selling, general and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | $ 2,743 | $ 2,059 | $ 5,569 | $ 3,593 |
Stockholders_ Equity and Stoc_8
Stockholders’ Equity and Stock-Based Compensation - Unrecognized Compensation Costs (Details) $ in Thousands | 6 Months Ended |
Jun. 29, 2019USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total unrecognized stock-based compensation expense | $ 41,671 |
Average expected recognition period | 2 years 3 months 14 days |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized expense, other than options | $ 32,804 |
Average expected recognition period | 2 years 3 months 7 days |
Performance restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized expense, other than options | $ 8,623 |
Average expected recognition period | 2 years 4 months 17 days |
Employee stock purchase plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized expense, other than options | $ 244 |
Average expected recognition period | 17 days |
Net Income per Share (Details)
Net Income per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Weighted-average shares used in computing basic net income (loss) per share (In shares) | 74,478 | 73,157 | 74,483 | 72,991 |
Add potentially dilutive securities (In shares) | 1,711 | 1,376 | 1,578 | 1,436 |
Weighted-average shares used in computing diluted net income per share (In shares) | 76,189 | 74,533 | 76,061 | 74,427 |
Anti-dilutive securities (In shares) | 263 | 76 | 252 | 49 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Jun. 29, 2019 |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Renewal Term | 20 years |
Operating Lease, Weighted Average Remaining Lease Term | 8 years |
Operating Lease, Weighted Average Discount Rate, Percent | 4.70% |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Term of Contract | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Term of Contract | 9 years |
Automobiles | Minimum | |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Term of Contract | 1 year |
Automobiles | Maximum | |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Term of Contract | 4 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Leases [Abstract] | ||||
Operating lease expense | $ 1,734 | $ 0 | $ 3,479 | $ 0 |
Short-term lease expense | 31 | 0 | 48 | 0 |
Variable lease expense | 249 | 0 | 668 | 0 |
Lease, Cost | $ 2,014 | $ 0 | $ 4,195 | $ 0 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Payments Under Leases (Details) $ in Thousands | Jun. 29, 2019USD ($) |
Leases [Abstract] | |
Remainder of 2019 | $ 3,327 |
2020 | 6,717 |
2021 | 5,902 |
2022 | 4,897 |
2023 | 4,435 |
Thereafter | 20,407 |
Lessee, Operating Lease, Liability, Payments, Due | $ 45,685 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 29, 2019 | Dec. 28, 2019 | Jun. 29, 2019 | Dec. 26, 2020 | Dec. 29, 2018 | |
Disaggregation of Revenue [Line Items] | |||||
Performance obligations | $ 3.8 | $ 3.8 | |||
Contract assets | 0.9 | 0.9 | $ 0.3 | ||
Contract with Customer, Liability | 7.9 | 7.9 | $ 5.7 | ||
Revenue recognized included in contracts | $ 0.9 | $ 2.9 | |||
Forecast | |||||
Disaggregation of Revenue [Line Items] | |||||
Expected to be recognized | 71.00% | 29.00% |
Operating Segments and Enterp_3
Operating Segments and Enterprise-Wide Information - Additional Information (Details) | 6 Months Ended |
Jun. 29, 2019segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Operating Segments and Enterp_4
Operating Segments and Enterprise-Wide Information - Operating Results by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 138,018 | $ 135,509 | $ 270,231 | $ 253,799 |
Gross profit | $ 55,352 | $ 56,218 | $ 107,873 | $ 101,347 |
Gross margin | 40.10% | 41.50% | 39.90% | 39.90% |
Operating income (loss) | $ 8,995 | $ 11,311 | $ 16,609 | $ 14,945 |
Probe Cards | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 113,637 | 111,586 | 221,740 | 206,514 |
Systems | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 24,381 | 23,923 | 48,491 | 47,285 |
Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Gross profit | $ (5,812) | $ (5,951) | $ (11,600) | $ (12,028) |
Gross margin | 0.00% | 0.00% | 0.00% | 0.00% |
Operating Segments | Probe Cards | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 113,637 | $ 111,586 | $ 221,740 | $ 206,514 |
Gross profit | $ 48,492 | $ 50,543 | $ 93,785 | $ 90,614 |
Gross margin | 42.70% | 45.30% | 42.30% | 43.90% |
Operating Segments | Systems | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 24,381 | $ 23,923 | $ 48,491 | $ 47,285 |
Gross profit | $ 12,672 | $ 11,626 | $ 25,688 | $ 22,761 |
Gross margin | 52.00% | 48.60% | 53.00% | 48.10% |
Operating Segments and Enterp_5
Operating Segments and Enterprise-Wide Information - Revenue by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 138,018 | $ 135,509 | $ 270,231 | $ 253,799 |
Gross profit | $ 55,352 | $ 56,218 | $ 107,873 | $ 101,347 |
Gross margin | 40.10% | 41.50% | 39.90% | 39.90% |
Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 113,637 | $ 111,586 | $ 221,740 | $ 206,514 |
Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 24,381 | 23,923 | 48,491 | 47,285 |
Corporate and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Gross profit | $ (5,812) | $ (5,951) | $ (11,600) | $ (12,028) |
Gross margin | 0.00% | 0.00% | 0.00% | 0.00% |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 38,369 | $ 33,230 | $ 72,632 | $ 66,093 |
United States | Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 32,072 | 28,473 | 59,727 | 54,961 |
United States | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,297 | 4,757 | 12,905 | 11,132 |
Taiwan | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 14,872 | 30,010 | 54,894 | 40,982 |
Taiwan | Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 12,826 | 26,858 | 52,378 | 38,103 |
Taiwan | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,046 | 3,152 | 2,516 | 2,879 |
CHINA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 20,355 | 14,613 | 42,198 | 26,887 |
CHINA | Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 16,304 | 11,035 | 34,455 | 20,062 |
CHINA | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 4,051 | 3,578 | 7,743 | 6,825 |
South Korea | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 28,171 | 25,992 | 37,259 | 57,732 |
South Korea | Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 27,360 | 24,187 | 34,083 | 52,829 |
South Korea | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 811 | 1,805 | 3,176 | 4,903 |
Asia-Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 7,683 | 6,954 | 26,525 | 27,215 |
Asia-Pacific | Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,262 | 5,666 | 18,167 | 20,965 |
Asia-Pacific | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,421 | 1,288 | 8,358 | 6,250 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 10,648 | 9,519 | 20,141 | 21,021 |
Europe | Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 4,474 | 4,109 | 9,847 | 9,682 |
Europe | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,174 | 5,410 | 10,294 | 11,339 |
Japan | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 16,093 | 13,543 | 10,946 | 11,769 |
Japan | Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 12,867 | 10,833 | 9,052 | 9,156 |
Japan | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3,226 | 2,710 | 1,894 | 2,613 |
Rest of the world | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,827 | 1,648 | 5,636 | 2,100 |
Rest of the world | Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,472 | 425 | 4,031 | 756 |
Rest of the world | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 355 | 1,223 | 1,605 | 1,344 |
Products transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 136,367 | 134,007 | 267,000 | 250,847 |
Products transferred at a point in time | Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 113,028 | 111,041 | 220,519 | 205,475 |
Products transferred at a point in time | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 23,339 | 22,966 | 46,481 | 45,372 |
Services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,651 | 1,502 | 3,231 | 2,952 |
Services transferred over time | Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 609 | 545 | 1,221 | 1,039 |
Services transferred over time | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,042 | 957 | 2,010 | 1,913 |
Foundry & Logic | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 73,442 | 62,111 | 145,022 | 120,549 |
Foundry & Logic | Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 73,442 | 62,111 | 145,022 | 120,549 |
Foundry & Logic | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
DRAM | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 36,044 | 38,090 | 64,930 | 68,357 |
DRAM | Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 36,044 | 38,090 | 64,930 | 68,357 |
DRAM | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Flash | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 4,151 | 11,385 | 11,788 | 17,608 |
Flash | Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 4,151 | 11,385 | 11,788 | 17,608 |
Flash | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 24,381 | 23,923 | 48,491 | 47,285 |
Systems | Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Systems | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 24,381 | 23,923 | 48,491 | 47,285 |
Operating Segments | Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 113,637 | 111,586 | 221,740 | 206,514 |
Gross profit | $ 48,492 | $ 50,543 | $ 93,785 | $ 90,614 |
Gross margin | 42.70% | 45.30% | 42.30% | 43.90% |
Operating Segments | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 24,381 | $ 23,923 | $ 48,491 | $ 47,285 |
Gross profit | $ 12,672 | $ 11,626 | $ 25,688 | $ 22,761 |
Gross margin | 52.00% | 48.60% | 53.00% | 48.10% |