Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 28, 2019 | Oct. 31, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 28, 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, $0.001 par value | |
Trading Symbol | FORM | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 75,699,945 | |
Amendment Flag | false | |
Entity Central Index Key | 0001039399 | |
Current Fiscal Year End Date | --12-28 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 122,946 | $ 98,472 |
Marketable securities | 77,025 | 50,531 |
Accounts receivable, net of allowance for doubtful accounts of $194 and $185 | 84,750 | 95,333 |
Inventories, net | 85,989 | 77,706 |
Restricted cash | 765 | 849 |
Refundable income taxes | 478 | 1,260 |
Prepaid expenses and other current assets | 17,834 | 13,669 |
Total current assets | 389,787 | 337,820 |
Restricted cash | 1,029 | 1,225 |
Operating Lease, Right-of-Use Asset | 32,300 | 0 |
Property, plant and equipment, net of accumulated depreciation of $268,486 and $263,102 | 56,240 | 54,054 |
Goodwill | 188,559 | 189,214 |
Intangibles, net | 47,054 | 67,640 |
Deferred tax assets | 77,274 | 77,301 |
Other assets | 1,362 | 968 |
Total assets | 793,605 | 728,222 |
Current liabilities: | ||
Accounts payable | 50,968 | 40,006 |
Accrued liabilities | 30,015 | 27,731 |
Current portion of term loan, net of unamortized issuance cost of $57 and $160 | 46,193 | 29,840 |
Deferred revenue | 8,315 | 4,941 |
Operating Lease, Liability, Current | 6,416 | 0 |
Total current liabilities | 141,907 | 102,518 |
Long-term income taxes payable | 0 | 34,971 |
Deferred tax liabilities | 2,244 | 2,355 |
Long-term operating lease liabilities | 30,074 | 0 |
Other liabilities | 4,834 | 8,214 |
Total liabilities | 179,059 | 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 | 76 | 74 |
Additional paid-in capital | 879,527 | 862,897 |
Accumulated other comprehensive income (loss) | (2,180) | 780 |
Accumulated deficit | (262,877) | (283,587) |
Total stockholders’ equity | 614,546 | 580,164 |
Total liabilities and stockholders’ equity | $ 793,605 | $ 728,222 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 194 | $ 185 |
Accumulated depreciation | 268,486 | 263,102 |
Debt Issuance Costs, Current, Net | 57 | 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) | 75,696,234 | 74,139,712 |
Common stock, shares outstanding (In shares) | 75,696,234 | 74,139,712 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Income Statement [Abstract] | ||||
Revenues | $ 140,604 | $ 134,989 | $ 410,835 | $ 388,788 |
Cost of revenues | 85,286 | 82,019 | 247,644 | 234,471 |
Gross profit | 55,318 | 52,970 | 163,191 | 154,317 |
Operating expenses: | ||||
Research and development | 20,096 | 18,857 | 59,893 | 56,578 |
Selling, general and administrative | 25,887 | 24,745 | 77,354 | 73,426 |
Total operating expenses | 45,983 | 43,602 | 137,247 | 130,004 |
Operating income | 9,335 | 9,368 | 25,944 | 24,313 |
Interest income | 724 | 369 | 1,988 | 952 |
Interest expense | (422) | (777) | (1,539) | (2,654) |
Other income (expense), net | 226 | 121 | 223 | (341) |
Income before income taxes | 9,863 | 9,081 | 26,616 | 22,270 |
Provision for income taxes | 1,584 | 1,393 | 5,906 | 3,334 |
Net income | $ 8,279 | $ 7,688 | $ 20,710 | $ 18,936 |
Net income per share: | ||||
Basic (In dollars per share) | $ 0.11 | $ 0.10 | $ 0.28 | $ 0.26 |
Diluted (In dollars per share) | $ 0.11 | $ 0.10 | $ 0.27 | $ 0.25 |
Basic | ||||
Basic (In shares) | 75,280 | 73,837 | 74,749 | 73,273 |
Diluted (In shares) | 77,291 | 74,962 | 76,763 | 74,628 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 8,279 | $ 7,688 | $ 20,710 | $ 18,936 |
Other comprehensive loss, net of tax: | ||||
Translation adjustments and other | (1,814) | (449) | (2,042) | (1,732) |
Unrealized gains (losses) on available-for-sale marketable securities | 11 | 50 | 304 | (84) |
Unrealized losses on derivative instruments | (536) | (134) | (1,222) | (47) |
Other comprehensive loss, net of tax | (2,339) | (533) | (2,960) | (1,863) |
Comprehensive income | $ 5,940 | $ 7,155 | $ 17,750 | $ 17,073 |
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) | 610,297,000 | ||||
Issuance of common stock under the Employee Stock Purchase Plan | 6,662 | $ 1 | 6,661 | ||
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) | 853,540,000 | ||||
Issuance of common stock pursuant to exercise of options for cash | (5,693) | (5,694) | |||
Stock-based compensation | 12,373 | 12,373 | |||
Accounting standard adoptions and adjustments | (50) | 0 | (50) | ||
Other comprehensive loss | (1,863) | (1,863) | |||
Net income | 18,936 | 18,936 | |||
Ending balance (In shares) at Sep. 29, 2018 | 74,101,623,000 | ||||
Ending balance at Sep. 29, 2018 | 490,051 | $ 75 | 857,505 | 1,158 | (368,687) |
Beginning balance (In shares) at Jun. 30, 2018 | 73,358,108,000 | ||||
Beginning balance at Jun. 30, 2018 | 478,668 | $ 74 | 853,278 | 1,691 | (376,375) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock under the Employee Stock Purchase Plan (In shares) | 268,627,000 | ||||
Issuance of common stock under the Employee Stock Purchase Plan | 2,957 | $ 0 | 2,957 | ||
Issuance of common stock pursuant to vesting of restricted stock units (In shares) | 474,888,000 | ||||
Issuance of common stock pursuant to exercise of options for cash | (3,240) | (3,241) | |||
Stock-based compensation | 4,511 | 4,511 | |||
Other comprehensive loss | (533) | (533) | |||
Net income | 7,688 | 7,688 | |||
Ending balance (In shares) at Sep. 29, 2018 | 74,101,623,000 | ||||
Ending balance at Sep. 29, 2018 | $ 490,051 | $ 75 | 857,505 | 1,158 | (368,687) |
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) | 544,271,000 | ||||
Issuance of common stock under the Employee Stock Purchase Plan | 6,806 | 6,806 | |||
Issuance of common stock pursuant to exercise of options for cash (In shares) | 112,956,000 | ||||
Issuance of common stock pursuant to exercise of options for cash | 754 | 754 | |||
Issuance of common stock pursuant to vesting of restricted stock units (In shares) | 899,295,000 | ||||
Issuance of common stock pursuant to exercise of options for cash | (7,896) | $ 2 | (7,898) | ||
Stock-based compensation | 16,968 | 16,968 | |||
Other comprehensive loss | (2,960) | (2,960) | |||
Net income | $ 20,710 | 20,710 | |||
Ending balance (In shares) at Sep. 28, 2019 | 75,696,234 | 75,696,234,000 | |||
Ending balance at Sep. 28, 2019 | $ 614,546 | $ 76 | 879,527 | (2,180) | (262,877) |
Beginning balance (In shares) at Jun. 29, 2019 | 74,691,781,000 | ||||
Beginning balance at Jun. 29, 2019 | 604,102 | $ 75 | 875,024 | 159 | (271,156) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock under the Employee Stock Purchase Plan (In shares) | 242,774,000 | ||||
Issuance of common stock under the Employee Stock Purchase Plan | 3,136 | 3,136 | |||
Issuance of common stock pursuant to exercise of options for cash (In shares) | 667,930,000 | ||||
Issuance of common stock pursuant to exercise of options for cash | (5,740) | $ 1 | (5,741) | ||
Issuance of common stock pursuant to vesting of restricted stock units (In shares) | 93,749,000 | ||||
Issuance of common stock pursuant to exercise of options for cash | 664 | $ 0 | 664 | ||
Stock-based compensation | 6,444 | 6,444 | |||
Other comprehensive loss | (2,339) | (2,339) | |||
Net income | $ 8,279 | 8,279 | |||
Ending balance (In shares) at Sep. 28, 2019 | 75,696,234 | 75,696,234,000 | |||
Ending balance at Sep. 28, 2019 | $ 614,546 | $ 76 | $ 879,527 | $ (2,180) | $ (262,877) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 20,710 | $ 18,936 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 12,644 | 10,494 |
Amortization | 20,248 | 21,876 |
Amortization (accretion) of discount on investments | (291) | 21 |
Amortization of operating lease, right-of-use assets | 3,921 | 0 |
Stock-based compensation expense | 17,088 | 12,421 |
Amortization of debt issuance costs | 132 | 333 |
Deferred income tax provision | 38 | 70 |
Provision for excess and obsolete inventories | 8,046 | 7,414 |
Loss on disposal of long-lived assets | 327 | 264 |
Loss on derivative instruments | 132 | 0 |
Foreign currency transaction (losses) gains | (186) | 409 |
Changes in assets and liabilities: | ||
Accounts receivable | 10,580 | (7,569) |
Inventories | (17,246) | (21,806) |
Prepaid expenses and other current assets | (4,509) | (1,874) |
Refundable income taxes | 782 | 933 |
Other assets | (595) | 697 |
Accounts payable | 10,074 | 10,425 |
Accrued liabilities | (856) | (8,882) |
Other liabilities | 2,374 | 2,197 |
Deferred revenues | 3,625 | (221) |
Operating lease liabilities | (3,660) | 0 |
Net cash provided by operating activities | 83,378 | 46,138 |
Net cash provided by operating activities | ||
Acquisition of property, plant and equipment | (14,242) | (12,326) |
Proceeds from sale of a subsidiary | 93 | 67 |
Proceeds from sale of property, plant and equipment | 0 | 23 |
Purchases of marketable securities | (59,602) | (18,984) |
Purchases of marketable securities | 33,704 | 17,757 |
Net cash used in investing activities | (40,047) | (13,463) |
Net cash used in investing activities | ||
Cash flows from financing activities: | 7,672 | 7,712 |
Purchase and retirement of common stock | (7,898) | (5,694) |
Proceeds from term loan debt | (18,750) | (33,750) |
Payment of term loan debt issuance costs | (18,976) | (31,732) |
Net cash used in financing activities | (161) | (516) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 24,194 | 427 |
Net increase in cash, cash equivalents and restricted cash | 100,546 | 92,726 |
Cash, cash equivalents and restricted cash, beginning of period | 124,740 | 93,153 |
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 | 1,062 | 4,724 |
Operating lease, right-of-use assets obtained in exchange for lease obligations | 36,300 | 0 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes, net | 2,875 | 2,513 |
Cash paid for interest | $ 1,128 | $ 2,299 |
Basis of Presentation and New A
Basis of Presentation and New Accounting Pronouncements | 9 Months Ended |
Sep. 28, 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 nine months ended September 28, 2019 and September 29, 2018 each contained 39 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 nine months ended September 28, 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 | 9 Months Ended |
Sep. 28, 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 Nine Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Intel Corporation 23.9 % 24.5 % 23.8 % 18.0 % SK Hynix Inc. 13.5 * 10.6 10.2 Micron Technology, Inc. 11.9 12.0 * 10.1 Samsung Electronics., LTD. * * 10.0 * 49.3 % 36.5 % 44.4 % 38.3 % *Represents less than 10% of total revenues. At September 28, 2019 , two customers accounted for 18.8% and 17.4% of gross accounts receivable, respectively. At December 29, 2018 , two customers accounted for 27.8% and 13.0% |
Inventories
Inventories | 9 Months Ended |
Sep. 28, 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): September 28, December 29, Raw materials $ 39,395 $ 43,380 Work-in-progress 31,486 20,431 Finished goods 15,108 13,895 $ 85,989 $ 77,706 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 28, 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 — (655 ) (655 ) Goodwill, gross, as of September 28, 2019 $ 172,482 $ 16,077 $ 188,559 We have no t recorded any goodwill impairments in the nine months ended September 28, 2019 . Intangible assets were as follows (in thousands): September 28, 2019 December 29, 2018 Other Intangible Assets Gross Accumulated Amortization Net Gross Accumulated Amortization Net Existing developed technologies $ 142,890 $ 110,943 $ 31,947 $ 143,408 $ 97,111 $ 46,297 Trade name 7,576 6,893 683 12,023 9,173 2,850 Customer relationships 39,990 25,566 14,424 40,146 21,653 18,493 $ 190,456 $ 143,402 $ 47,054 $ 195,577 $ 127,937 $ 67,640 In the current quarter we disposed of certain fully amortized trade names. Amortization expense was included in our Condensed Consolidated Statements of Income as follows (in thousands): Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, Cost of revenues $ 4,707 $ 5,123 $ 14,137 $ 15,418 Selling, general and administrative 1,372 2,389 6,111 6,458 $ 6,079 $ 7,512 $ 20,248 $ 21,876 The estimated future amortization of intangible assets is as follows (in thousands): Fiscal Year Amount Remainder of 2019 $ 6,065 2020 23,243 2021 12,546 2022 3,467 2023 1,733 $ 47,054 |
Accrued Liabilities
Accrued Liabilities | 9 Months Ended |
Sep. 28, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consisted of the following (in thousands): September 28, 2019 December 29, 2018 Accrued compensation and benefits $ 15,640 $ 15,600 Accrued employee stock purchase plan contributions withheld 1,431 3,174 Accrued warranty 1,793 2,102 Accrued income and other taxes 7,218 4,222 Other accrued expenses 3,933 2,633 $ 30,015 $ 27,731 |
Fair Value and Derivative Instr
Fair Value and Derivative Instruments | 9 Months Ended |
Sep. 28, 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 nine months ended September 28, 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 nine 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): September 28, 2019 Level 1 Level 2 Total Assets: Cash equivalents: Money market funds $ 959 $ — $ 959 Marketable securities: U.S. treasuries 31,832 — 31,832 Certificates of deposit — 3,648 3,648 U.S. agency securities — 3,088 3,088 Corporate bonds — 33,737 33,737 Commercial paper — 4,720 4,720 31,832 45,193 77,025 Foreign exchange derivative contracts — 93 93 Interest rate swap derivative contracts — 86 86 Total assets $ 32,791 $ 45,372 $ 78,163 Liabilities: Foreign exchange derivative contracts $ — $ 739 $ 739 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 is 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 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 September 28, 2019 $ 12 Interest expense $ 113 Interest expense $ — Three Months Ended September 29, 2018 $ 62 Interest expense $ 196 Interest expense $ — Nine Months Ended September 28, 2019 $ (78 ) Interest expense $ 496 Interest expense $ — Nine Months Ended September 29, 2018 $ 418 Interest expense $ 514 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 September 28, 2019 , we expect to reclassify $0.6 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 September 28, 2019 will mature by the second quarter of fiscal 2020. The following table provides information about our foreign currency forward contracts outstanding as of September 28, 2019 (in thousands): Currency Contract Position Contract Amount (Local Currency) Contract Amount (U.S. Dollars) Euro Dollar Buy (924 ) $ (1,715 ) Japanese Yen Sell 2,974,829 27,613 Korean Won Sell 3,019,313 2,516 Total USD notional amount of outstanding foreign exchange contracts $ 28,414 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 (Loss) Recognized on Derivatives Three Months Ended Nine Months Ended Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized on Derivatives September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Foreign exchange forward contracts Other income (expense), net $ (76 ) $ 706 $ 198 $ 923 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 September 28, 2019 $ 642 Cost of revenues $ 126 Research and development 23 Selling, general and administrative 58 $ 207 Three Months Ended September 29, 2018 $ — $ — Nine Months Ended September 28, 2019 $ 1,096 Cost of revenues $ 297 Research and development 42 Selling, general and administrative 109 $ 448 Nine Months Ended September 29, 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 nine months ended September 28, 2019 or September 29, 2018 |
Restructuring Charges
Restructuring Charges | 9 Months Ended |
Sep. 28, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges Restructuring charges in the first nine months 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 Condensed Consolidated Statement of Income as follows (in thousands): Three Months Ended Nine Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Cost of revenues $ — $ — $ 258 $ — Selling, general and administrative 22 — 199 — $ 22 $ — $ 457 $ — Changes to the restructuring accrual in the nine months ended September 28, 2019 were as follows (in thousands): Employee Severance and Benefits Other Costs Total Accrual December 29, 2018 $ 20 $ — $ 20 Restructuring charges 184 273 457 Cash payments (128 ) — (128 ) Non-cash settlement — (273 ) (273 ) September 28, 2019 $ 76 $ — $ 76 |
Warranty
Warranty | 9 Months Ended |
Sep. 28, 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): Nine Months Ended September 28, September 29, Balance at beginning of period $ 2,102 $ 3,662 Accruals 2,742 3,168 Settlements (3,051 ) (4,373 ) Balance at end of period $ 1,793 $ 2,457 |
Stockholders_ Equity and Stock-
Stockholders’ Equity and Stock-Based Compensation | 9 Months Ended |
Sep. 28, 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 nine months ended September 28, 2019 , we did not repurchase any shares. As of September 28, 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 1,487,200 15.01 Awards vested (1,366,925 ) 11.89 Awards forfeited (130,677 ) 13.35 RSUs at September 28, 2019 3,091,824 $ 14.24 The total fair value of RSUs vested during the nine months ended September 28, 2019 was $22.9 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 nine months ended September 28, 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 (112,956 ) 6.67 Outstanding at September 28, 2019 411,769 $ 8.36 2.40 $ 4,167,393 Vested and expected to vest at September 28, 2019 411,769 $ 8.36 2.40 $ 4,167,393 Exercisable at September 28, 2019 411,769 $ 8.36 2.40 $ 4,167,393 Employee Stock Purchase Plan Information related to activity under our Employee Stock Purchase Plan ("ESPP") was as follows: Nine Months Ended September 28, 2019 Shares issued 544,271 Weighted average per share purchase price $ 12.51 Weighted average per share discount from the fair value of our common stock on the date of issuance $ 3.40 Stock-Based Compensation Stock-based compensation was included in our Condensed Consolidated Statements of Income as follows (in thousands): Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, Cost of revenues $ 1,117 $ 832 $ 3,031 $ 2,565 Research and development 1,729 1,312 4,830 3,870 Selling, general and administrative 3,658 2,393 9,227 5,986 Total stock-based compensation $ 6,504 $ 4,537 $ 17,088 $ 12,421 Unrecognized Compensation Costs At September 28, 2019 , the unrecognized stock-based compensation was as follows (dollars in thousands): Unrecognized Expense Average Expected Recognition Period in Years Restricted stock units $ 27,942 2.11 Performance restricted stock units 7,597 2.17 Employee stock purchase plan 1,114 0.34 Total unrecognized stock-based compensation expense $ 36,653 2.07 |
Net Income per Share
Net Income per Share | 9 Months Ended |
Sep. 28, 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 Nine Months Ended September 28, September 29, September 28, September 29, Weighted-average shares used in computing basic net income per share 75,280 73,837 74,749 73,273 Add potentially dilutive securities 2,011 1,125 2,014 1,355 Weighted-average shares used in computing diluted net income per share 77,291 74,962 76,763 74,628 Securities not included as they would have been antidilutive — 5 23 21 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 28, 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 September 28, 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 September 28, 2019 |
Leases
Leases | 9 Months Ended |
Sep. 28, 2019 | |
Leases [Abstract] | |
Leases | Leases We lease real estate space under non-cancelable operating lease agreements for commercial and industrial space, as well as for 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 September 28, 2019 and the weighted-average discount rate was 4.7% . The components of lease expense were as follows (in thousands): Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, Lease expense: Operating lease expense $ 1,726 $ — $ 5,205 $ — Short-term lease expense 53 — 101 — Variable lease expense 252 — 920 — $ 2,031 $ — $ 6,226 $ — Future minimum payments under our non-cancelable operating leases were as follows as of September 28, 2019 (in thousands): Fiscal Year Amount Remainder of 2019 $ 1,753 2020 6,855 2021 5,984 2022 4,928 2023 4,430 Thereafter 20,403 $ 44,353 |
Revenue
Revenue | 9 Months Ended |
Sep. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Transaction price allocated to the remaining performance obligations: On September 28, 2019 , we had $4.1 million of remaining performance obligations, which were comprised of deferred service contracts and extended warranty contracts not yet delivered. We expect to recognize approximately 31% of our remaining performance obligations as revenue in the remainder of fiscal 2019, approximately 50% in fiscal 2020, and approximately 19% in fiscal 2021 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 September 28, 2019 and December 29, 2018 were $1.4 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 September 28, 2019 and December 29, 2018 were $9.3 million and $5.7 million , respectively. During the three and nine months ended September 28, 2019 , we recognized $1.0 million and $3.9 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 | 9 Months Ended |
Sep. 28, 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 September 28, 2019 September 29, 2018 Probe Cards Systems Corporate and Other Total Probe Cards Systems Corporate and Other Total Revenues $ 116,447 $ 24,157 $ — $ 140,604 $ 111,606 $ 23,383 $ — $ 134,989 Gross profit $ 48,127 $ 13,015 $ (5,824 ) $ 55,318 $ 47,675 $ 11,250 $ (5,955 ) $ 52,970 Gross margin 41.3 % 53.9 % — % 39.3 % 42.7 % 48.1 % — % 39.2 % Nine Months Ended September 28, 2019 September 29, 2018 Probe Cards Systems Corporate and Other Total Probe Cards Systems Corporate and Other Total Revenues $ 338,187 $ 72,648 $ — $ 410,835 $ 318,120 $ 70,668 $ — $ 388,788 Gross profit $ 141,913 $ 38,703 $ (17,425 ) $ 163,191 $ 138,182 $ 34,118 $ (17,983 ) $ 154,317 Gross margin 42.0 % 53.3 % — % 39.7 % 43.4 % 48.3 % — % 39.7 % 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 September 28, 2019 September 29, 2018 Probe Cards Systems Total Probe Cards Systems Total Market: Foundry & Logic $ 68,431 $ — $ 68,431 $ 61,270 $ — $ 61,270 DRAM 39,425 — 39,425 37,359 — 37,359 Flash 8,591 — 8,591 12,977 — 12,977 Systems — 24,157 24,157 — 23,383 23,383 Total $ 116,447 $ 24,157 $ 140,604 $ 111,606 $ 23,383 $ 134,989 Timing of revenue recognition: Products transferred at a point in time $ 115,324 $ 23,561 $ 138,885 $ 111,020 $ 22,422 $ 133,442 Services transferred over time 1,123 596 1,719 586 961 1,547 Total $ 116,447 $ 24,157 $ 140,604 $ 111,606 $ 23,383 $ 134,989 Geographical region: United States $ 28,400 $ 5,265 $ 33,665 $ 34,398 $ 5,729 $ 40,127 South Korea 22,779 818 23,597 19,437 1,437 20,874 China 24,427 6,956 31,383 16,928 5,152 22,080 Taiwan 16,513 1,742 18,255 19,032 777 19,809 Japan 13,640 3,289 16,929 10,462 4,273 14,735 Europe 5,754 3,794 9,548 5,499 3,629 9,128 Asia-Pacific 1 3,516 2,149 5,665 5,557 1,673 7,230 Rest of the world 1,418 144 1,562 293 713 1,006 Total $ 116,447 $ 24,157 $ 140,604 $ 111,606 $ 23,383 $ 134,989 Nine Months Ended September 28, 2019 September 29, 2018 Probe Cards Systems Total Probe Cards Systems Total Market: Foundry & Logic $ 213,453 $ — $ 213,453 $ 181,819 $ — $ 181,819 DRAM 104,355 — 104,355 105,716 — 105,716 Flash 20,379 — 20,379 30,585 — 30,585 Systems — 72,648 72,648 — 70,668 70,668 Total $ 338,187 $ 72,648 $ 410,835 $ 318,120 $ 70,668 $ 388,788 Timing of revenue recognition: Products transferred at a point in time $ 335,054 $ 70,831 $ 405,885 $ 316,495 $ 67,794 $ 384,289 Services transferred over time 3,133 1,817 4,950 $ 1,625 $ 2,874 4,499 Total $ 338,187 $ 72,648 $ 410,835 $ 318,120 $ 70,668 $ 388,788 Geographical region: United States $ 88,127 $ 18,170 $ 106,297 $ 89,441 $ 16,227 $ 105,668 South Korea 75,157 3,334 78,491 $ 57,540 $ 4,365 61,905 China 58,882 14,699 73,581 36,975 12,018 48,993 Taiwan 50,596 4,918 55,514 $ 71,863 $ 5,896 77,759 Japan 31,807 11,647 43,454 $ 31,355 $ 10,550 41,905 Europe 15,601 14,088 29,689 $ 15,189 $ 14,991 30,180 Asia-Pacific 1 12,568 4,043 16,611 $ 14,710 $ 4,567 19,277 Rest of the world 5,449 1,749 7,198 $ 1,047 $ 2,054 3,101 Total $ 338,187 $ 72,648 $ 410,835 $ 318,120 $ 70,668 $ 388,788 1 Asia-Pacific includes all countries in the region except China, Japan, South Korea, and Taiwan, which are disclosed separately. |
Subsequent Event (Notes)
Subsequent Event (Notes) | 9 Months Ended |
Sep. 28, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Acquisition of FRT GmbH On October 9, 2019, subsequent to the balance sheet date, we acquired 100.0% of the shares of FRT GmbH, a Germany based company, for total consideration of €19.7 million subject to normal working capital adjustments. Up to €10.3 million of additional cash consideration may be payable subject to the performance of the acquired business in 2020. This acquisition strengthens our leadership in test and measurement by expanding our addressable market into 3D surface metrology and extending the optical applications scope of our existing Systems segment. The transaction will be accounted for in accordance with the acquisition method of accounting which requires, among other things, that assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date including acquired in-process research and development assets. Due to the limited time since the acquisition date, the initial purchase allocation for the business combination is incomplete at this time. Disclosures regarding amounts recognized for major classes of assets acquired and liabilities assumed will be provided once the initial accounting is completed. The acquired subsidiary is not expected to be material to the Company’s operations and overall financial position. We expensed $0.2 million of costs relating to legal, financial and due diligence services performed in connection with this transaction, which are included in Selling, general and administrative expenses in the accompanying Condensed Consolidated Statements of Income for the three and nine months ended September 28, 2019. Credit Facility Agreement On October 25, 2019, FormFactor GmbH and ATT Advanced Temperature Test Systems GmbH, our wholly owned subsidiaries, entered into a credit facility agreement (the "Credit Facility Agreement") with HSBC Trinkaus & Burkhardt AG. The Credit Facility Agreement provides for a three-year loan in the amount of €21.0 million (the "Credit Facility"). The Credit Facility bears interest at a rate equal to the Euro Interbank Offered Rate ("EURIBOR") plus 1.75% per annum. The Credit Facility will be repaid in quarterly installments of €1.75 million |
Basis of Presentation and New_2
Basis of Presentation and New Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 28, 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 nine months ended September 28, 2019 and September 29, 2018 each contained 39 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 nine months ended September 28, 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 nine months of fiscal 2019 . |
Concentration of Credit and O_2
Concentration of Credit and Other Risks (Tables) | 9 Months Ended |
Sep. 28, 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 Nine Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Intel Corporation 23.9 % 24.5 % 23.8 % 18.0 % SK Hynix Inc. 13.5 * 10.6 10.2 Micron Technology, Inc. 11.9 12.0 * 10.1 Samsung Electronics., LTD. * * 10.0 * 49.3 % 36.5 % 44.4 % 38.3 % |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory Components | Inventories, net, consisted of the following (in thousands): September 28, December 29, Raw materials $ 39,395 $ 43,380 Work-in-progress 31,486 20,431 Finished goods 15,108 13,895 $ 85,989 $ 77,706 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 28, 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 — (655 ) (655 ) Goodwill, gross, as of September 28, 2019 $ 172,482 $ 16,077 $ 188,559 |
Schedule of Intangible Assets | Intangible assets were as follows (in thousands): September 28, 2019 December 29, 2018 Other Intangible Assets Gross Accumulated Amortization Net Gross Accumulated Amortization Net Existing developed technologies $ 142,890 $ 110,943 $ 31,947 $ 143,408 $ 97,111 $ 46,297 Trade name 7,576 6,893 683 12,023 9,173 2,850 Customer relationships 39,990 25,566 14,424 40,146 21,653 18,493 $ 190,456 $ 143,402 $ 47,054 $ 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 Nine Months Ended September 28, September 29, September 28, September 29, Cost of revenues $ 4,707 $ 5,123 $ 14,137 $ 15,418 Selling, general and administrative 1,372 2,389 6,111 6,458 $ 6,079 $ 7,512 $ 20,248 $ 21,876 |
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 $ 6,065 2020 23,243 2021 12,546 2022 3,467 2023 1,733 $ 47,054 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | Accrued liabilities consisted of the following (in thousands): September 28, 2019 December 29, 2018 Accrued compensation and benefits $ 15,640 $ 15,600 Accrued employee stock purchase plan contributions withheld 1,431 3,174 Accrued warranty 1,793 2,102 Accrued income and other taxes 7,218 4,222 Other accrued expenses 3,933 2,633 $ 30,015 $ 27,731 |
Fair Value and Derivative Ins_2
Fair Value and Derivative Instruments (Tables) | 9 Months Ended |
Sep. 28, 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): September 28, 2019 Level 1 Level 2 Total Assets: Cash equivalents: Money market funds $ 959 $ — $ 959 Marketable securities: U.S. treasuries 31,832 — 31,832 Certificates of deposit — 3,648 3,648 U.S. agency securities — 3,088 3,088 Corporate bonds — 33,737 33,737 Commercial paper — 4,720 4,720 31,832 45,193 77,025 Foreign exchange derivative contracts — 93 93 Interest rate swap derivative contracts — 86 86 Total assets $ 32,791 $ 45,372 $ 78,163 Liabilities: Foreign exchange derivative contracts $ — $ 739 $ 739 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 September 28, 2019 $ 12 Interest expense $ 113 Interest expense $ — Three Months Ended September 29, 2018 $ 62 Interest expense $ 196 Interest expense $ — Nine Months Ended September 28, 2019 $ (78 ) Interest expense $ 496 Interest expense $ — Nine Months Ended September 29, 2018 $ 418 Interest expense $ 514 Interest expense $ — |
Schedule of Foreign Currency Forward Contracts | The following table provides information about our foreign currency forward contracts outstanding as of September 28, 2019 (in thousands): Currency Contract Position Contract Amount (Local Currency) Contract Amount (U.S. Dollars) Euro Dollar Buy (924 ) $ (1,715 ) Japanese Yen Sell 2,974,829 27,613 Korean Won Sell 3,019,313 2,516 Total USD notional amount of outstanding foreign exchange contracts $ 28,414 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 September 28, 2019 $ 642 Cost of revenues $ 126 Research and development 23 Selling, general and administrative 58 $ 207 Three Months Ended September 29, 2018 $ — $ — Nine Months Ended September 28, 2019 $ 1,096 Cost of revenues $ 297 Research and development 42 Selling, general and administrative 109 $ 448 Nine Months Ended September 29, 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 (Loss) Recognized on Derivatives Three Months Ended Nine Months Ended Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized on Derivatives September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Foreign exchange forward contracts Other income (expense), net $ (76 ) $ 706 $ 198 $ 923 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring charges were included in our Condensed Consolidated Statement of Income as follows (in thousands): Three Months Ended Nine Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Cost of revenues $ — $ — $ 258 $ — Selling, general and administrative 22 — 199 — $ 22 $ — $ 457 $ — |
Schedule of Restructuring Accrual Activity | Changes to the restructuring accrual in the nine months ended September 28, 2019 were as follows (in thousands): Employee Severance and Benefits Other Costs Total Accrual December 29, 2018 $ 20 $ — $ 20 Restructuring charges 184 273 457 Cash payments (128 ) — (128 ) Non-cash settlement — (273 ) (273 ) September 28, 2019 $ 76 $ — $ 76 |
Warranty (Tables)
Warranty (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Product Warranties Disclosures [Abstract] | |
Reconciliation of Changes in Warranty Liability | Changes in our warranty liability were as follows (in thousands): Nine Months Ended September 28, September 29, Balance at beginning of period $ 2,102 $ 3,662 Accruals 2,742 3,168 Settlements (3,051 ) (4,373 ) Balance at end of period $ 1,793 $ 2,457 |
Stockholders_ Equity and Stoc_2
Stockholders’ Equity and Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 28, 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 1,487,200 15.01 Awards vested (1,366,925 ) 11.89 Awards forfeited (130,677 ) 13.35 RSUs at September 28, 2019 3,091,824 $ 14.24 |
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 (112,956 ) 6.67 Outstanding at September 28, 2019 411,769 $ 8.36 2.40 $ 4,167,393 Vested and expected to vest at September 28, 2019 411,769 $ 8.36 2.40 $ 4,167,393 Exercisable at September 28, 2019 411,769 $ 8.36 2.40 $ 4,167,393 |
Schedule of ESPP Activity | Information related to activity under our Employee Stock Purchase Plan ("ESPP") was as follows: Nine Months Ended September 28, 2019 Shares issued 544,271 Weighted average per share purchase price $ 12.51 Weighted average per share discount from the fair value of our common stock on the date of issuance $ 3.40 |
Schedule of Stock-based Compensation | Stock-based compensation was included in our Condensed Consolidated Statements of Income as follows (in thousands): Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, Cost of revenues $ 1,117 $ 832 $ 3,031 $ 2,565 Research and development 1,729 1,312 4,830 3,870 Selling, general and administrative 3,658 2,393 9,227 5,986 Total stock-based compensation $ 6,504 $ 4,537 $ 17,088 $ 12,421 |
Schedule of Unrecognized Stock-based Compensation | At September 28, 2019 , the unrecognized stock-based compensation was as follows (dollars in thousands): Unrecognized Expense Average Expected Recognition Period in Years Restricted stock units $ 27,942 2.11 Performance restricted stock units 7,597 2.17 Employee stock purchase plan 1,114 0.34 Total unrecognized stock-based compensation expense $ 36,653 2.07 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 9 Months Ended |
Sep. 28, 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 Nine Months Ended September 28, September 29, September 28, September 29, Weighted-average shares used in computing basic net income per share 75,280 73,837 74,749 73,273 Add potentially dilutive securities 2,011 1,125 2,014 1,355 Weighted-average shares used in computing diluted net income per share 77,291 74,962 76,763 74,628 Securities not included as they would have been antidilutive — 5 23 21 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense were as follows (in thousands): Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, Lease expense: Operating lease expense $ 1,726 $ — $ 5,205 $ — Short-term lease expense 53 — 101 — Variable lease expense 252 — 920 — $ 2,031 $ — $ 6,226 $ — |
Schedule of Future Minimum Payments Under Leases | Future minimum payments under our non-cancelable operating leases were as follows as of September 28, 2019 (in thousands): Fiscal Year Amount Remainder of 2019 $ 1,753 2020 6,855 2021 5,984 2022 4,928 2023 4,430 Thereafter 20,403 $ 44,353 |
Operating Segments and Enterp_2
Operating Segments and Enterprise-Wide Information (Tables) | 9 Months Ended |
Sep. 28, 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 September 28, 2019 September 29, 2018 Probe Cards Systems Corporate and Other Total Probe Cards Systems Corporate and Other Total Revenues $ 116,447 $ 24,157 $ — $ 140,604 $ 111,606 $ 23,383 $ — $ 134,989 Gross profit $ 48,127 $ 13,015 $ (5,824 ) $ 55,318 $ 47,675 $ 11,250 $ (5,955 ) $ 52,970 Gross margin 41.3 % 53.9 % — % 39.3 % 42.7 % 48.1 % — % 39.2 % Nine Months Ended September 28, 2019 September 29, 2018 Probe Cards Systems Corporate and Other Total Probe Cards Systems Corporate and Other Total Revenues $ 338,187 $ 72,648 $ — $ 410,835 $ 318,120 $ 70,668 $ — $ 388,788 Gross profit $ 141,913 $ 38,703 $ (17,425 ) $ 163,191 $ 138,182 $ 34,118 $ (17,983 ) $ 154,317 Gross margin 42.0 % 53.3 % — % 39.7 % 43.4 % 48.3 % — % 39.7 % |
Disaggregation of Revenue by Segment | Certain revenue category information by reportable segment was as follows (in thousands): Three Months Ended September 28, 2019 September 29, 2018 Probe Cards Systems Total Probe Cards Systems Total Market: Foundry & Logic $ 68,431 $ — $ 68,431 $ 61,270 $ — $ 61,270 DRAM 39,425 — 39,425 37,359 — 37,359 Flash 8,591 — 8,591 12,977 — 12,977 Systems — 24,157 24,157 — 23,383 23,383 Total $ 116,447 $ 24,157 $ 140,604 $ 111,606 $ 23,383 $ 134,989 Timing of revenue recognition: Products transferred at a point in time $ 115,324 $ 23,561 $ 138,885 $ 111,020 $ 22,422 $ 133,442 Services transferred over time 1,123 596 1,719 586 961 1,547 Total $ 116,447 $ 24,157 $ 140,604 $ 111,606 $ 23,383 $ 134,989 Geographical region: United States $ 28,400 $ 5,265 $ 33,665 $ 34,398 $ 5,729 $ 40,127 South Korea 22,779 818 23,597 19,437 1,437 20,874 China 24,427 6,956 31,383 16,928 5,152 22,080 Taiwan 16,513 1,742 18,255 19,032 777 19,809 Japan 13,640 3,289 16,929 10,462 4,273 14,735 Europe 5,754 3,794 9,548 5,499 3,629 9,128 Asia-Pacific 1 3,516 2,149 5,665 5,557 1,673 7,230 Rest of the world 1,418 144 1,562 293 713 1,006 Total $ 116,447 $ 24,157 $ 140,604 $ 111,606 $ 23,383 $ 134,989 Nine Months Ended September 28, 2019 September 29, 2018 Probe Cards Systems Total Probe Cards Systems Total Market: Foundry & Logic $ 213,453 $ — $ 213,453 $ 181,819 $ — $ 181,819 DRAM 104,355 — 104,355 105,716 — 105,716 Flash 20,379 — 20,379 30,585 — 30,585 Systems — 72,648 72,648 — 70,668 70,668 Total $ 338,187 $ 72,648 $ 410,835 $ 318,120 $ 70,668 $ 388,788 Timing of revenue recognition: Products transferred at a point in time $ 335,054 $ 70,831 $ 405,885 $ 316,495 $ 67,794 $ 384,289 Services transferred over time 3,133 1,817 4,950 $ 1,625 $ 2,874 4,499 Total $ 338,187 $ 72,648 $ 410,835 $ 318,120 $ 70,668 $ 388,788 Geographical region: United States $ 88,127 $ 18,170 $ 106,297 $ 89,441 $ 16,227 $ 105,668 South Korea 75,157 3,334 78,491 $ 57,540 $ 4,365 61,905 China 58,882 14,699 73,581 36,975 12,018 48,993 Taiwan 50,596 4,918 55,514 $ 71,863 $ 5,896 77,759 Japan 31,807 11,647 43,454 $ 31,355 $ 10,550 41,905 Europe 15,601 14,088 29,689 $ 15,189 $ 14,991 30,180 Asia-Pacific 1 12,568 4,043 16,611 $ 14,710 $ 4,567 19,277 Rest of the world 5,449 1,749 7,198 $ 1,047 $ 2,054 3,101 Total $ 338,187 $ 72,648 $ 410,835 $ 318,120 $ 70,668 $ 388,788 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 | 9 Months Ended | 12 Months Ended | ||
Sep. 28, 2019 | Dec. 28, 2019 | Sep. 28, 2019 | Dec. 25, 2021 | Dec. 26, 2020 | Dec. 29, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Performance obligations | $ 4.1 | $ 4.1 | ||||
Contract assets | 1.4 | 1.4 | $ 0.3 | |||
Contract liabilities | 9.3 | 9.3 | $ 5.7 | |||
Revenue recognized included in contracts | $ 1 | $ 3.9 | ||||
Forecast | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Expected to be recognized | 31.00% | 19.00% | 50.00% |
Basis of Presentation and New_4
Basis of Presentation and New Accounting Pronouncements - ASU 2016-18 Information (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 | Sep. 29, 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 | $ 122,946 | $ 98,472 | ||
Current assets - Restricted cash | 765 | 849 | ||
Restricted cash | 1,029 | 1,225 | ||
Cash, cash equivalents and restricted cash as currently reported in the Condensed Consolidated Statements of Cash Flows | $ 124,740 | $ 100,546 | $ 93,153 | $ 92,726 |
Concentration of Credit and O_3
Concentration of Credit and Other Risks (Details) - Customer Concentration Risk | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Dec. 29, 2018 | |
Revenue from Contract with Customer Benchmark | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 49.30% | 36.50% | 44.40% | 38.30% | |
Revenue from Contract with Customer Benchmark | Intel Corporation | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 23.90% | 24.50% | 23.80% | 18.00% | |
Revenue from Contract with Customer Benchmark | Samsung Electronics., LTD. | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 10.00% | ||||
Revenue from Contract with Customer Benchmark | Micron Technology, Inc. | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 11.90% | 12.00% | 10.10% | ||
Revenue from Contract with Customer Benchmark | SK Hynix Inc. | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 13.50% | 10.60% | 10.20% | ||
Accounts Receivable | Major Customer 1 | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 18.80% | 27.80% | |||
Accounts Receivable | Major Customer 2 | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 17.40% | 13.00% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 39,395 | $ 43,380 |
Work-in-progress | 31,486 | 20,431 |
Finished goods | 15,108 | 13,895 |
Inventories | $ 85,989 | $ 77,706 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 28, 2019 | Dec. 29, 2018 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 189,214,000 | $ 189,920,000 |
Foreign currency translation | (655,000) | (706,000) |
Goodwill, ending balance | 188,559,000 | 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 | (655,000) | (706,000) |
Goodwill, ending balance | $ 16,077,000 | $ 16,732,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross | $ 190,456 | $ 195,577 |
Accumulated Amortization | 143,402 | 127,937 |
Intangible Assets, Net | 47,054 | 67,640 |
Existing developed technologies | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross | 142,890 | 143,408 |
Accumulated Amortization | 110,943 | 97,111 |
Intangible Assets, Net | 31,947 | 46,297 |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross | 7,576 | 12,023 |
Accumulated Amortization | 6,893 | 9,173 |
Intangible Assets, Net | 683 | 2,850 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross | 39,990 | 40,146 |
Accumulated Amortization | 25,566 | 21,653 |
Intangible Assets, Net | $ 14,424 | $ 18,493 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Dec. 29, 2018 | |
Property, Plant and Equipment [Line Items] | |||||
Amortization of intangible assets | $ 6,079 | $ 7,512 | $ 20,248 | $ 21,876 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Rolling Maturity [Abstract] | |||||
Remainder of 2019 | 6,065 | 6,065 | |||
2019 | 23,243 | 23,243 | |||
2020 | 12,546 | 12,546 | |||
2021 | 3,467 | 3,467 | |||
2022 | 1,733 | 1,733 | |||
Intangible Assets, Net | 47,054 | 47,054 | $ 67,640 | ||
Cost of revenues | |||||
Property, Plant and Equipment [Line Items] | |||||
Amortization of intangible assets | 4,707 | 5,123 | 14,137 | 15,418 | |
Selling, general and administrative | |||||
Property, Plant and Equipment [Line Items] | |||||
Amortization of intangible assets | $ 1,372 | $ 2,389 | $ 6,111 | $ 6,458 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 |
Payables and Accruals [Abstract] | ||
Accrued compensation and benefits | $ 15,640 | $ 15,600 |
Accrued warranty | 1,431 | 3,174 |
Accrued employee stock purchase plan contributions withheld | 1,793 | 2,102 |
Accrued income and other taxes | 7,218 | 4,222 |
Other accrued expenses | 3,933 | 2,633 |
Accrued liabilities | $ 30,015 | $ 27,731 |
Fair Value and Derivative Ins_3
Fair Value and Derivative Instruments - Fair Value Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | $ 77,025 | |
Total assets measured at fair value | 78,163 | $ 52,586 |
Derivative Liability | 739 | |
Foreign exchange derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 50,531 | |
Derivative contracts | 93 | |
Interest rate swap derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative contracts | 86 | 871 |
Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 959 | 1,184 |
U.S. treasuries | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 31,832 | 7,997 |
Certificates of deposit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 3,648 | 957 |
U.S. agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 3,088 | 8,608 |
Corporate bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 33,737 | 30,674 |
Commercial paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 4,720 | 2,295 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 31,832 | |
Total assets measured at fair value | 32,791 | 9,181 |
Derivative Liability | 0 | |
Level 1 | Foreign exchange derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 7,997 | |
Derivative contracts | 0 | |
Level 1 | Interest rate swap derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative contracts | 0 | 0 |
Level 1 | Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 959 | 1,184 |
Level 1 | U.S. treasuries | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 31,832 | 7,997 |
Level 1 | Certificates of deposit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 0 | 0 |
Level 1 | U.S. agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 0 | 0 |
Level 1 | Corporate bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 0 | 0 |
Level 1 | Commercial paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 0 | 0 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 45,193 | |
Total assets measured at fair value | 45,372 | 43,405 |
Derivative Liability | 739 | |
Level 2 | Foreign exchange derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 42,534 | |
Derivative contracts | 93 | |
Level 2 | Interest rate swap derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative contracts | 86 | 871 |
Level 2 | Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Level 2 | U.S. treasuries | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 0 | 0 |
Level 2 | Certificates of deposit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 3,648 | 957 |
Level 2 | U.S. agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 3,088 | 8,608 |
Level 2 | Corporate bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 33,737 | 30,674 |
Level 2 | Commercial paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | $ 4,720 | $ 2,295 |
Restructuring Charges - Restruc
Restructuring Charges - Restructuring Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 22 | $ 0 | $ 457 | $ 0 |
Cost of revenues | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 0 | 0 | 258 | 0 |
Selling, general and administrative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 22 | $ 0 | $ 199 | $ 0 |
Fair Value and Derivative Ins_4
Fair Value and Derivative Instruments - Impact of Cash Flow Hedges and Derivatives (Details) - Designated as Hedging Instrument - Interest Rate Contracts - Cash Flow Hedging - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
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) | $ 12 | $ 62 | $ (78) | $ 418 |
Other Income (Expense), Net | ||||
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) | $ 113 | $ 196 | $ 496 | $ 514 |
Restructuring Charges - Changes
Restructuring Charges - Changes to the Restructuring Accrual (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Restructuring Reserve [Roll Forward] | ||||
Accrual at beginning of period | $ 20 | |||
Restructuring charges | $ 22 | $ 0 | 457 | $ 0 |
Cash payments | (128) | |||
Non-cash settlement | (273) | |||
Accrual at end of period | 76 | 76 | ||
Employee Severance and Benefits | ||||
Restructuring Reserve [Roll Forward] | ||||
Accrual at beginning of period | 20 | |||
Restructuring charges | 184 | |||
Cash payments | (128) | |||
Non-cash settlement | 0 | |||
Accrual at end of period | 76 | 76 | ||
Other Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Accrual at beginning of period | 0 | |||
Restructuring charges | 273 | |||
Cash payments | 0 | |||
Non-cash settlement | (273) | |||
Accrual at end of period | $ 0 | $ 0 |
Fair Value and Derivative Ins_5
Fair Value and Derivative Instruments - Foreign Currency Forward Contracts (Details) - 9 months ended Sep. 28, 2019 $ in Thousands, $ in Thousands | USD ($) | TWD ($) | USD ($) |
Derivative [Line Items] | |||
Amount expected to be reclassified | $ 600 | ||
Foreign exchange forward contracts | |||
Derivative [Line Items] | |||
Derivative, notional amount | $ 28,414 | ||
Buy | Euro Dollar | Foreign exchange forward contracts | |||
Derivative [Line Items] | |||
Derivative, notional amount | $ 924 | 1,715 | |
Sell | Japanese Yen | Foreign exchange forward contracts | |||
Derivative [Line Items] | |||
Derivative, notional amount | 2,974,829 | 27,613 | |
Sell | Korean Won | Foreign exchange forward contracts | |||
Derivative [Line Items] | |||
Derivative, notional amount | $ 3,019,313 | $ 2,516 |
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 | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Derivatives Not Designated as Hedging Instruments | Foreign exchange forward contracts | Location of Gain (Loss) Recognized on Derivatives | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivatives Not Designated as Hedging Instruments | $ (76) | $ 706 | $ 198 | $ 923 |
Fair Value and Derivative Ins_7
Fair Value and Derivative Instruments - Assets Measured at Fair Value on a Non-Recurring Basis (Details) - USD ($) | Sep. 28, 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 | $ 78,163,000 | 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) - Foreign exchange forward contracts - Designated as Hedging Instrument - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) | $ 642 | $ 0 | $ 1,096 | $ 0 |
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 207 | $ 0 | 448 | $ 0 |
Cost of revenues | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 126 | 297 | ||
Research and development | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 23 | 42 | ||
Selling, general and administrative | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | $ 58 | $ 109 |
Warranty (Details)
Warranty (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Balance at beginning of period | $ 2,102 | $ 3,662 |
Accruals | 2,742 | 3,168 |
Settlements | (3,051) | (4,373) |
Balance at end of period | $ 1,793 | $ 2,457 |
Stockholders_ Equity and Stoc_3
Stockholders’ Equity and Stock-Based Compensation - Additional Information (Details) - USD ($) | Jun. 04, 2019 | Sep. 28, 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 | $ 22,900,000 | ||
Awards granted (in shares) | 1,487,200 | ||
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 | 9 Months Ended |
Sep. 28, 2019$ / sharesshares | |
Units | |
Beginning balance (in shares) | shares | 3,102,226 |
Awards granted (in shares) | shares | 1,487,200 |
Awards vested (in shares) | shares | (1,366,925) |
Awards canceled (in shares) | shares | (130,677) |
Ending balance (in shares) | shares | 3,091,824 |
Weighted Average Grant Date Fair Value | |
Beginning Balance (in dollars per share) | $ / shares | $ 12.79 |
Awards granted (in dollars per share) | $ / shares | 15.01 |
Awards vested (in dollars per share) | $ / shares | 11.89 |
Awards canceled (in dollars per share) | $ / shares | 13.35 |
Ending Balance (in dollars per share) | $ / shares | $ 14.24 |
Stockholders_ Equity and Stoc_5
Stockholders’ Equity and Stock-Based Compensation - Stock Option Activity (Details) - Equity Incentive Plan $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 28, 2019USD ($)$ / sharesshares | |
Options Outstanding | |
Outstanding, beginning of period (In shares) | shares | 524,725 |
Options exercised (In shares) | shares | (112,956) |
Outstanding, end of period (In shares) | shares | 411,769 |
Exercisable (In shares) | shares | 411,769 |
Weighted Average Exercise Price | |
Outstanding, beginning of period (In dollars per share) | $ / shares | $ 8 |
Options exercised (In dollars per share) | $ / shares | 6.67 |
Outstanding, end of period (In dollars per share) | $ / shares | 8.36 |
Exercisable (In dollars per share) | $ / shares | $ 8.36 |
Additional Disclosures | |
Outstanding, weighted average remaining contractual life | 2 years 4 months 24 days |
Exercisable, weighted average remaining contractual life | 2 years 4 months 24 days |
Outstanding, aggregate intrinsic value | $ | $ 4,167,393 |
Exercisable, aggregate intrinsic value | $ | $ 4,167,393 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | shares | 411,769 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ / shares | $ 8.36 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 2 years 4 months 24 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ | $ 4,167,393 |
Stockholders_ Equity and Stoc_6
Stockholders’ Equity and Stock-Based Compensation - ESPP Activity (Details) - Employee stock purchase plan | 9 Months Ended |
Sep. 28, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares issued under ESPP (In shares) | shares | 544,271 |
Weighted average per share purchase price (in dollars per share) | $ 12.51 |
Weighted average per share discount from the fair value of our common stock on the date of issuance (in dollars per share) | $ 3.40 |
Stockholders_ Equity and Stoc_7
Stockholders’ Equity and Stock-Based Compensation - Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | $ 6,504 | $ 4,537 | $ 17,088 | $ 12,421 |
Cost of revenues | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | 1,117 | 832 | 3,031 | 2,565 |
Research and development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | 1,729 | 1,312 | 4,830 | 3,870 |
Selling, general and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | $ 3,658 | $ 2,393 | $ 9,227 | $ 5,986 |
Stockholders_ Equity and Stoc_8
Stockholders’ Equity and Stock-Based Compensation - Unrecognized Compensation Costs (Details) $ in Thousands | 9 Months Ended |
Sep. 28, 2019USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total unrecognized stock-based compensation expense | $ 36,653 |
Average expected recognition period | 2 years 25 days |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized expense, other than options | $ 27,942 |
Average expected recognition period | 2 years 1 month 9 days |
Performance restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized expense, other than options | $ 7,597 |
Average expected recognition period | 2 years 2 months 1 day |
Employee stock purchase plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized expense, other than options | $ 1,114 |
Average expected recognition period | 4 months 2 days |
Net Income per Share (Details)
Net Income per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Earnings Per Share [Abstract] | ||||
Weighted-average shares used in computing basic net income (loss) per share (In shares) | 75,280 | 73,837 | 74,749 | 73,273 |
Add potentially dilutive securities (In shares) | 2,011 | 1,125 | 2,014 | 1,355 |
Weighted-average shares used in computing diluted net income per share (In shares) | 77,291 | 74,962 | 76,763 | 74,628 |
Anti-dilutive securities (In shares) | 0 | 5 | 23 | 21 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Sep. 28, 2019 |
Lessee, Lease, Description [Line Items] | |
Operating lease, renewal term | 20 years |
Operating lease, weighted average remaining lease term | 8 years |
Operating lease, weighted average discount rate | 4.70% |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, term of contract | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, term of contract | 9 years |
Automobiles | Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, term of contract | 1 year |
Automobiles | Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, term of contract | 4 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Leases [Abstract] | ||||
Operating lease expense | $ 1,726 | $ 0 | $ 5,205 | $ 0 |
Short-term lease expense | 53 | 0 | 101 | 0 |
Variable lease expense | 252 | 0 | 920 | 0 |
Lease, Cost | $ 2,031 | $ 0 | $ 6,226 | $ 0 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Payments Under Leases (Details) $ in Thousands | Sep. 28, 2019USD ($) |
Leases [Abstract] | |
Remainder of 2019 | $ 1,753 |
2020 | 6,855 |
2021 | 5,984 |
2022 | 4,928 |
2023 | 4,430 |
Thereafter | 20,403 |
Lessee, Operating Lease, Liability, Payments, Due | $ 44,353 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 28, 2019 | Dec. 28, 2019 | Sep. 28, 2019 | Dec. 25, 2021 | Dec. 26, 2020 | Dec. 29, 2018 | |
Disaggregation of Revenue [Line Items] | ||||||
Performance obligations | $ 4.1 | $ 4.1 | ||||
Contract assets | 1.4 | 1.4 | $ 0.3 | |||
Contract liabilities | 9.3 | 9.3 | $ 5.7 | |||
Revenue recognized included in contracts | $ 1 | $ 3.9 | ||||
Forecast | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Expected to be recognized | 31.00% | 19.00% | 50.00% |
Operating Segments and Enterp_3
Operating Segments and Enterprise-Wide Information - Additional Information (Details) | 9 Months Ended |
Sep. 28, 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 | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 140,604 | $ 134,989 | $ 410,835 | $ 388,788 |
Gross profit | $ 55,318 | $ 52,970 | $ 163,191 | $ 154,317 |
Gross margin | 39.30% | 39.20% | 39.70% | 39.70% |
Probe Cards | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 116,447 | $ 111,606 | $ 338,187 | $ 318,120 |
Systems | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 24,157 | 23,383 | 72,648 | 70,668 |
Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Gross profit | $ (5,824) | $ (5,955) | $ (17,425) | $ (17,983) |
Gross margin | 0.00% | 0.00% | 0.00% | 0.00% |
Operating Segments | Probe Cards | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 116,447 | $ 111,606 | $ 338,187 | $ 318,120 |
Gross profit | $ 48,127 | $ 47,675 | $ 141,913 | $ 138,182 |
Gross margin | 41.30% | 42.70% | 42.00% | 43.40% |
Operating Segments | Systems | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 24,157 | $ 23,383 | $ 72,648 | $ 70,668 |
Gross profit | $ 13,015 | $ 11,250 | $ 38,703 | $ 34,118 |
Gross margin | 53.90% | 48.10% | 53.30% | 48.30% |
Operating Segments and Enterp_5
Operating Segments and Enterprise-Wide Information - Revenue by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 140,604 | $ 134,989 | $ 410,835 | $ 388,788 |
Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 116,447 | 111,606 | 338,187 | 318,120 |
Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 24,157 | 23,383 | 72,648 | 70,668 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 33,665 | 40,127 | 106,297 | 105,668 |
United States | Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 28,400 | 34,398 | 88,127 | 89,441 |
United States | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5,265 | 5,729 | 18,170 | 16,227 |
South Korea | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 23,597 | 20,874 | 55,514 | 77,759 |
South Korea | Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 22,779 | 19,437 | 50,596 | 71,863 |
South Korea | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 818 | 1,437 | 4,918 | 5,896 |
China | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 31,383 | 22,080 | 73,581 | 48,993 |
China | Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 24,427 | 16,928 | 58,882 | 36,975 |
China | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,956 | 5,152 | 14,699 | 12,018 |
Taiwan | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 18,255 | 19,809 | 78,491 | 61,905 |
Taiwan | Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 16,513 | 19,032 | 75,157 | 57,540 |
Taiwan | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,742 | 777 | 3,334 | 4,365 |
Japan | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 16,929 | 14,735 | 16,611 | 19,277 |
Japan | Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 13,640 | 10,462 | 12,568 | 14,710 |
Japan | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3,289 | 4,273 | 4,043 | 4,567 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 9,548 | 9,128 | 29,689 | 30,180 |
Europe | Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5,754 | 5,499 | 15,601 | 15,189 |
Europe | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3,794 | 3,629 | 14,088 | 14,991 |
Asia-Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5,665 | 7,230 | 43,454 | 41,905 |
Asia-Pacific | Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3,516 | 5,557 | 31,807 | 31,355 |
Asia-Pacific | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,149 | 1,673 | 11,647 | 10,550 |
Rest of the world | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,562 | 1,006 | 7,198 | 3,101 |
Rest of the world | Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,418 | 293 | 5,449 | 1,047 |
Rest of the world | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 144 | 713 | 1,749 | 2,054 |
Products transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 138,885 | 133,442 | 405,885 | 384,289 |
Products transferred at a point in time | Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 115,324 | 111,020 | 335,054 | 316,495 |
Products transferred at a point in time | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 23,561 | 22,422 | 70,831 | 67,794 |
Services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,719 | 1,547 | 4,950 | 4,499 |
Services transferred over time | Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,123 | 586 | 3,133 | 1,625 |
Services transferred over time | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 596 | 961 | 1,817 | 2,874 |
Foundry & Logic | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 68,431 | 61,270 | 213,453 | 181,819 |
Foundry & Logic | Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 68,431 | 61,270 | 213,453 | 181,819 |
Foundry & Logic | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
DRAM | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 39,425 | 37,359 | 104,355 | 105,716 |
DRAM | Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 39,425 | 37,359 | 104,355 | 105,716 |
DRAM | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Flash | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 8,591 | 12,977 | 20,379 | 30,585 |
Flash | Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 8,591 | 12,977 | 20,379 | 30,585 |
Flash | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 24,157 | 23,383 | 72,648 | 70,668 |
Systems | Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Systems | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 24,157 | $ 23,383 | $ 72,648 | $ 70,668 |
Subsequent Event - FRT Acquisit
Subsequent Event - FRT Acquisition (Details) - FRT GmbH € in Millions, $ in Millions | Oct. 09, 2019EUR (€) | Sep. 28, 2019USD ($) |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Business Acquisition, percentage acquired | 100.00% | |
Consideration transferred | € 19.7 | |
Contingent consideration, liability | € 10.3 | |
Selling, general and administrative | ||
Subsequent Event [Line Items] | ||
Transaction costs | $ | $ 0.2 |
Subsequent Event - Credit Facil
Subsequent Event - Credit Facility Agreement (Details) - Subsequent Event $ in Thousands | Oct. 25, 2019USD ($) |
Subsequent Event [Line Items] | |
Debt instrument, face amount | $ 21,000 |
Debt instrument, periodic payment, principal | $ 1,750 |
Euro Interbank Offered Rate (EURIBOR) | |
Subsequent Event [Line Items] | |
Variable interest rate | 1.75% |