Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 17, 2017 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | RUDOLPH TECHNOLOGIES INC | |
TradingSymbol | RTEC | |
Entity Central Index Key | 1,094,392 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 31,586,918 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Current Assets: | ||
Cash and cash equivalents | $ 68,026 | $ 37,859 |
Marketable securities | 91,339 | 87,872 |
Accounts receivable, less allowance of $510 and $680 | 66,188 | 64,912 |
Inventories, net | 65,766 | 65,485 |
Income taxes receivable | 0 | 2,389 |
Prepaid expenses and other current assets | 17,533 | 4,113 |
Total current assets | 308,852 | 262,630 |
Property, plant and equipment, net | 15,849 | 11,858 |
Goodwill | 22,495 | 22,495 |
Identifiable intangible assets, net | 9,006 | 10,273 |
Other assets | 31,342 | 31,443 |
Total assets | 387,544 | 338,699 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 25,381 | 21,494 |
Income tax payable | 4,770 | 0 |
Deferred revenue | 5,622 | 7,329 |
Other current liabilities | 9,650 | 7,139 |
Total current liabilities | 45,423 | 35,962 |
Other non-current liabilities | 9,915 | 9,002 |
Total liabilities | 55,338 | 44,964 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock | 32 | 31 |
Additional paid-in capital | 384,631 | 381,189 |
Accumulated other comprehensive loss | (1,392) | (2,779) |
Accumulated deficit | (51,065) | (84,706) |
Total stockholders’ equity | 332,206 | 293,735 |
Total liabilities and stockholders’ equity | $ 387,544 | $ 338,699 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Statement Of Financial Position [Abstract] | ||
Allowance for Doubtful Accounts Receivable, Current | $ 510 | $ 680 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Consolidated Statements Of Operations [Abstract] | ||||
Revenues | $ 66,920 | $ 61,641 | $ 195,017 | $ 178,704 |
Cost of revenues | 31,775 | 29,192 | 92,548 | 83,017 |
Gross profit | 35,145 | 32,449 | 102,469 | 95,687 |
Operating expenses (income): | ||||
Research and development | 12,020 | 9,330 | 36,176 | 33,655 |
Selling, general and administrative | 10,102 | 9,894 | 29,880 | 28,881 |
Amortization | 506 | 595 | 1,516 | 1,785 |
Patent litigation income | (13,000) | (11) | (13,000) | (14,643) |
Total operating expenses | 9,628 | 19,808 | 54,572 | 49,678 |
Operating income | 25,517 | 12,641 | 47,897 | 46,009 |
Interest (income) expense, net | (244) | 64 | (658) | 2,979 |
Other expense (income) | 98 | (393) | 533 | (94) |
Income before income taxes | 25,663 | 12,970 | 48,022 | 43,124 |
Provision for income taxes | 8,294 | 3,684 | 14,309 | 12,298 |
Net income | $ 17,369 | $ 9,286 | $ 33,713 | $ 30,826 |
Earnings per share: | ||||
Basic | $ 0.55 | $ 0.30 | $ 1.07 | $ 0.99 |
Diluted | $ 0.54 | $ 0.30 | $ 1.05 | $ 0.97 |
Weighted average shares outstanding: | ||||
Basic | 31,571 | 30,988 | 31,455 | 31,082 |
Diluted | 32,170 | 31,459 | 32,126 | 31,655 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Consolidated Statement Of Comprehensive Income [Abstract] | ||||
Net income | $ 17,369 | $ 9,286 | $ 33,713 | $ 30,826 |
Other comprehensive income: | ||||
Change in net unrealized gains on investments, net of tax | (2) | (89) | 43 | (66) |
Change in currency translation adjustments | 91 | 54 | 1,344 | 1,288 |
Total comprehensive income | $ 17,458 | $ 9,251 | $ 35,100 | $ 32,048 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 33,713 | $ 30,826 |
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities: | ||
Amortization of convertible note discount and issuance costs | 0 | 2,154 |
Amortization of intangibles | 1,516 | 1,785 |
Depreciation | 2,925 | 2,768 |
Foreign currency exchange loss | 533 | 852 |
Change in fair value of contingent consideration | 132 | 117 |
Share-based compensation | 4,413 | 3,646 |
Gain on disposal of property, plant and equipment | 0 | (946) |
Provision for doubtful accounts and inventory valuation | 3,019 | 2,671 |
Patent litigation income | (13,000) | 0 |
Changes in operating assets and liabilities | 9,536 | (12,347) |
Net cash and cash equivalents provided by operating activities | 42,787 | 31,526 |
Cash flows from investing activities: | ||
Purchases of marketable securities | (103,224) | (110,283) |
Proceeds from sales of marketable securities | 99,931 | 141,936 |
Purchases of property, plant and equipment | (7,447) | (2,527) |
Proceeds from sales of property, plant and equipment | 0 | 1,165 |
Net cash and cash equivalents provided by (used in) investing activities | (10,740) | 30,291 |
Cash flows from financing activities: | ||
Redemption of stock warrants | (1,025) | 0 |
Payments on redemption of convertible senior notes | 0 | (60,000) |
Purchases of common stock | 0 | (8,044) |
Tax payments related to shares withheld for share-based compensation plans | (1,331) | (1,573) |
Payment of contingent consideration for acquired business | (358) | (94) |
Issuance of shares through share-based compensation plans | 289 | 354 |
Net cash and cash equivalents used in financing activities | (2,425) | (69,357) |
Effect of exchange rate changes on cash and cash equivalents | 545 | 1,532 |
Net increase (decrease) in cash and cash equivalents | 30,167 | (6,008) |
Cash and cash equivalents at beginning of period | 37,859 | 44,554 |
Cash and cash equivalents at end of period | 68,026 | 38,546 |
Supplemental disclosure of cash flow information: | ||
Income taxes paid | 6,917 | 6,479 |
Interest paid | 0 | 2,250 |
Litigation settlement received | $ 0 | $ 14,643 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Organization And Nature Of Operations [Abstract] | |
Basis of Presentation | NOTE 1. Basis of Presentation The accompanying interim unaudited condensed consolidated financial statements have been prepared by Rudolph Technologies, Inc. (the “Company” or “Rudolph”) and in the opinion of management reflect all adjustments, consisting of normal recurring accruals, necessary for their fair presentation in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Preparing financial statements requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Actual amounts could differ materially from reported amounts. The interim results for the three and nine month periods ended September 30, 2017 are not necessarily indicative of results to be expected for the entire year or any future periods. This interim financial information should be read in conjunction with the financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 (“2016 10-K”) filed with the Securities and Exchange Commission (“SEC”). The accompanying condensed consolidated balance sheet at December 31, 2016 has been derived from the audited consolidated financial statements included in the 2016 10-K. Recent Accounting Pronouncements Recently Adopted Effective January 1, 2017, the Company adopted the Financial Accounting Standards Board (FASB) Accounting Standard Update (ASU) No. 2016-09, “Improvements to Employee Share-Based Payment Accounting.” The standard update simplifies several aspects of the accounting for employee share-based payment transactions, including accounting for income taxes, forfeitures, and statutory withholding requirements, as well as classification in the Condensed Consolidated Statement of Cash Flows. As a result of the adoption, on a prospective basis, the Company recognized $123 and $1,418 of excess tax benefits from stock-based compensation as a benefit in our income tax provision for the three and nine months ended September 30, 2017, respectively. Historically, these amounts were recorded as additional paid-in capital. Upon adoption, the Company elected to present excess tax benefits to operating cash flows retrospectively to its Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2016, which resulted in a reclassification of excess tax benefits from stock-based compensation of $716 from cash flows from financing activities to cash flows from operating activities. The Company elected to change its policy on accounting for forfeitures and account for forfeitures as they occur. As a result of the forfeiture rate policy change, the Company recorded a reduction to retained earnings of $72 under the modified retrospective approach. Additional amendments to the accounting for income taxes and minimum statutory withholding requirements had no impact on its results of operations. Effective January 1, 2017, the Company adopted ASU No. 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory.” This simplifies subsequent measurement of inventory by having an entity measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable cost of completion, disposal, and transportation. The adoption of ASU 2015-11 did not have any impact on the Company's consolidated financial position, results of operations, and cash flows. Recently Issued In May 2017, the FASB issued ASU No. 2017-09, “Compensation - Stock Compensation (Topic718): Scope of Modification Accounting.” This ASU amends the scope of modification accounting for share-based payment arrangements and provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under ASC 718. The ASU is effective for the fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company is currently evaluating the effect the adoption of ASU No. 2017-09 will have on its consolidated financial position, results of operations, and cash flows. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” This ASU eliminates Step 2 from the goodwill impairment test. Accordingly, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss will be recognized in an amount equal to the excess, limited to the total amount of goodwill allocated to the reporting unit. The ASU is effective for the fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company is currently evaluating the effect the adoption of ASU No. 2017-04 will have on its consolidated financial position, results of operations, and cash flows. In October 2016, the FASB issued ASU No. 2016-16, “Income Tax (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory.” This ASU, which is part of the Board’s simplification initiative, is intended to reduce the complexity of U.S. GAAP and diversity in practice related to the tax consequences of certain types of intra-entity asset transfers, particularly those involving intellectual property. This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company is currently evaluating the effect the adoption of ASU No. 2016-16 will have on its consolidated financial position, results of operations, and cash flows. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” This ASU provides guidance on statement of cash flows presentation for eight specific cash flow issues where diversity in practice exists. This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company is currently evaluating the effect the adoption of ASU No. 2016-15 will have on its consolidated financial position, results of operations, and cash flows. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326),” which introduces new guidance for the accounting for credit losses on instruments within its scope. Given the breadth of that scope, the new ASU will impact both financial services and non-financial services entities. The standard is effective for fiscal years beginning after December 15, 2020. The Company is currently evaluating the effect the adoption of ASU No. 2016-13 will have on its consolidated financial position, results of operations, and cash flows. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” The standard requires that lessees will be required to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than 12 months. ASU No. 2016-02 also will require disclosures designed to give financial statement users information on the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative information. The standard is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018 with earlier adoption permitted. The Company is in the process of evaluating the effects the adoption of ASU No. 2016-02 will have on its consolidated financial position, results of operations, and cash flows. I n May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which supersedes nearly all existing revenue recognition guidance. The core principle of Topic 606 is that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In July 2015, the FASB deferred the effective date of the standard by one year which results in the new standard being effective for the Company at the beginning of its first quarter of fiscal year 2018. In addition, during March, April, May and December 2016 and September 2017, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, and ASU No. 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842), respectively, which clarified the guidance on certain items such as reporting revenue as a principal versus agent, identifying performance obligations, accounting for intellectual property licenses, assessing collectability, presentation of sales taxes, impairment testing for contract costs, disclosure of performance obligations, and provided additional implementation guidance. The Company plans to adopt the new standard on January 1, 2018. The Company is in the process of completing its initial assessment of the effect of adoption and believes the impact of the new standard on the amount and timing of revenue recognition will be insignificant. The new standard will require additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows from customer contracts, including judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The Company expects to use the modified retrospective method of adoption, reflecting the cumulative effect of initially applying the new standard to revenue recognition in the first quarter of 2018. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | NOTE 2. Fair Value Measurements The Company applies a three-level valuation hierarchy for fair value measurements. This hierarchy prioritizes the inputs into three broad levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the asset or liability. Level 3 inputs are unobservable inputs based on management’s assumptions used to measure assets and liabilities at fair value. A financial asset’s or liability’s fair value measurement classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The following tables provide the assets and liabilities carried at fair value measured on a recurring basis at September 30, 2017 and December 31, 2016: Fair Value Measurements Using Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) September 30, 2017 Assets: Available-for-sale debt securities: Municipal notes and bonds $ 91,339 $ — $ 91,339 $ — Foreign currency forward contracts 61 — 61 — Total Assets $ 91,400 $ — $ 91,400 $ — Liabilities: Contingent consideration - acquisitions $ 3,025 $ — $ — $ 3,025 Total Liabilities $ 3,025 $ — $ — $ 3,025 December 31, 2016 Assets: Available-for-sale debt securities: Municipal notes and bonds $ 87,029 $ — $ 87,029 $ — Corporate bonds 843 — 843 — Foreign currency forward contracts 312 — 312 — Total Assets $ 88,184 $ — $ 88,184 $ — Liabilities: Contingent consideration - acquisitions $ 3,251 $ — $ — $ 3,251 Total Liabilities $ 3,251 $ — $ — $ 3,251 The Company’s investments classified as Level 1 are based on quoted market prices that are available in active markets. The Company’s investments classified as Level 2 are valued using observable inputs to quoted market prices, benchmark yields, reported trades, broker/dealer quotes or alternative pricing sources with reasonable levels of price transparency. The foreign currency forward contracts are primarily measured based on the foreign currency spot and forward rates quoted by the banks or foreign currency dealers. Investment prices are obtained from third party pricing providers, which models prices utilizing the above observable inputs, for each asset class. Level 3 liabilities consisted of contingent consideration related to an acquisition for which the Company uses a discounted cash flow model to value these liabilities. The Level 3 assumptions used in the discounted cash flow model for the contingent consideration included projected revenues, timing of cash flows and estimates of discount rates of 8.6% and 9.1% for the nine months ended September 30, 2017 and 2016, respectively. A significant decrease in the projected revenues or increase in discount rates could result in a significantly lower fair value measurement for the contingent consideration. This table presents a reconciliation for all liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the nine months ended September 30, 2017: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Balance at December 31, 2016 $ 3,251 Additions — Total loss included in selling, general and administrative expense 132 Payments (358 ) Transfers into (out of) Level 3 — Balance at September 30, 2017 $ 3,025 See Note 3 for additional discussion regarding the fair value of the Company’s marketable securities. Fair Value of Other Financial Instruments The carrying value of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximates fair value because of the short-term maturity of these instruments. The estimated fair value of these obligations is based, primarily, on a market approach, comparing the Company’s interest rates to those rates the Company believes it would reasonably receive upon re-entry into the market. Judgment is required to estimate the fair value, using available market information and appropriate valuation methods. |
Marketable Securities
Marketable Securities | 9 Months Ended |
Sep. 30, 2017 | |
Marketable Securities [Abstract] | |
Marketable Securities | NOTE 3. Marketable Securities The Company has evaluated its investment policies and determined that all of its investment securities are to be classified as available-for-sale. Available-for-sale securities are carried at fair value, with the unrealized gains and losses reported in Stockholders’ equity under the caption “Accumulated other comprehensive loss.” Realized gains and losses on available-for-sale securities are included in “Other expense” in the Condensed Consolidated Statements of Operations. The Company records other-than-temporary impairment charges for its available-for-sale investments when it intends to sell the securities, it is more-likely-than not that it will be required to sell the securities before a recovery, or when it does not expect to recover the entire amortized cost basis of the securities. The cost of securities sold is based on the specific identification method. The Company has determined that the gross unrealized losses on its marketable securities at September 30, 2017 and December 31, 2016 are temporary in nature. The Company reviews its investment portfolio to identify and evaluate investments that have indications of possible impairment. Factors considered in determining whether a loss is other-than-temporary include the length of time and extent to which fair value has been less than the cost basis, credit quality and the Company’s ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value. At September 30, 2017 and December 31, 2016, marketable securities are categorized as follows: Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Fair Value September 30, 2017 Municipal notes and bonds $ 91,329 $ 20 $ (10 ) $ 91,339 Total marketable securities $ 91,329 $ 20 $ (10 ) $ 91,339 December 31, 2016 Municipal notes and bonds $ 87,088 $ 6 $ (65 ) $ 87,029 Corporate bonds 842 1 — 843 Total marketable securities $ 87,930 $ 7 $ (65 ) $ 87,872 The amortized cost and estimated fair value of marketable securities classified by the maturity date listed on the security, regardless of the Condensed Consolidated Balance Sheet classification, is as follows at September 30, 2017 and December 31, 2016: September 30, 2017 December 31, 2016 Amortized Cost Fair Value Amortized Cost Fair Value Due within one year $ 83,709 $ 83,720 $ 82,498 $ 82,445 Due after one through five years 7,620 7,619 5,432 5,427 Due after five through ten years — — — — Due after ten years — — — — Total marketable securities $ 91,329 $ 91,339 $ 87,930 $ 87,872 The following table summarizes the estimated fair value and gross unrealized holding losses of marketable securities, aggregated by investment instrument and period of time in an unrealized loss position at September 30, 2017 and December 31, 2016: Unrealized Loss Position For Less Than 12 Months Unrealized Loss Position For Greater Than 12 Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses September 30, 2017 Municipal notes and bonds $ 28,178 $ (10 ) $ — $ — Total $ 28,178 $ (10 ) $ — $ — December 31, 2016 Municipal notes and bonds $ 64,918 $ (65 ) $ — $ — Total $ 64,918 $ (65 ) $ — $ — See Note 2 for additional discussion regarding the fair value of the Company’s marketable securities. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | NOTE 4. Derivative Instruments and Hedging Activities The Company, when it considers it to be appropriate, enters into forward contracts to hedge the economic exposures arising from foreign currency denominated transactions. At September 30, 2017 and December 31, 2016, these contracts included the future sale of Japanese Yen to purchase U.S. dollars. Derivative instruments are recognized as either, “Prepaid expenses and other current assets” or “Other current liabilities” in the Condensed Consolidated Balance Sheets and are measured at fair value. The foreign currency forward contracts were entered into by the Company’s Japanese subsidiary to economically hedge a portion of certain intercompany obligations. The forward contracts are not designated as hedges for accounting purposes and decreases in the fair value of $251 and $384 for the nine months ended September 30, 2017 and 2016, respectively, are recorded within the caption “Other expense (income)” in the Condensed Consolidated Statements of Operations. The dollar equivalent of the U.S. dollar forward contracts and related fair values as of September 30, 2017 and December 31, 2016 were as follows: September 30, 2017 December 31, 2016 Notional amount $ 4,803 $ 3,827 Fair value of asset $ 61 $ 312 |
Purchased Intangible Assets
Purchased Intangible Assets | 9 Months Ended |
Sep. 30, 2017 | |
Purchased Intangible Assets [Abstract] | |
Purchased Intangible Assets | NOTE 5. Purchased Intangible Assets Purchased intangible assets as of September 30, 2017 and December 31, 2016 are as follows: Gross Carrying Amount Accumulated Amortization Net September 30, 2017 Finite-lived intangibles: Developed technology $ 65,777 $ 58,193 $ 7,584 Customer and distributor relationships 9,560 8,748 812 Trade names 4,361 3,751 610 Total identifiable intangible assets $ 79,698 $ 70,692 $ 9,006 December 31, 2016 Finite-lived intangibles: Developed technology $ 65,527 $ 56,986 $ 8,541 Customer and distributor relationships 9,560 8,514 1,046 Trade names 4,361 3,675 686 Total identifiable intangible assets $ 79,448 $ 69,175 $ 10,273 Intangible asset amortization expense for the three and nine months ended September 30, 2017 was $506 and $1,516, respectively. For the three and nine months ended September 30, 2016, intangible assets amortization expenses was $595 and $1,785, respectively. Assuming no change in the gross carrying value of identifiable intangible assets and estimated lives, estimated amortization expense for the remainder of 2017 will be $423, and for each of the next five years estimated amortization expense amounts to $1,516 for 2018, $1,516 for 2019, $1,313 for 2020, $566 for 2021, and $499 for 2022. |
Balance Sheet Details
Balance Sheet Details | 9 Months Ended |
Sep. 30, 2017 | |
Balance Sheet Detail [Abstract] | |
Balance Sheet Details | NOTE 6. Balance Sheet Details Prepaid expenses and other current assets Prepaid expenses and other current assets comprised of the following: September 30, 2017 December 31, 2016 Patent Litigation $ 13,000 $ — Other 4,533 4,113 Total prepaid expenses and other current assets $ 17,533 $ 4,113 Inventories Inventories are comprised of the following: September 30, 2017 December 31, 2016 Materials $ 38,280 $ 32,993 Work-in-process 21,609 18,764 Finished goods 5,877 13,728 Total inventories $ 65,766 $ 65,485 The Company has established reserves of $12,775 and $10,545 as of September 30, 2017 and December 31, 2016, respectively, for slow moving and obsolete inventory, which are included in the amounts above. Property, Plant and Equipment Property, plant and equipment, net is comprised of the following: September 30, 2017 December 31, 2016 Land and building $ 2,584 $ 2,584 Machinery and equipment 27,938 23,493 Furniture and fixtures 3,121 2,699 Computer equipment and software 5,778 5,204 Leasehold improvements 9,252 8,116 48,673 42,096 Accumulated depreciation (32,824 ) (30,238 ) Total property, plant and equipment, net $ 15,849 $ 11,858 Other assets Other assets is comprised of the following: September 30, 2017 December 31, 2016 Deferred income taxes $ 30,755 $ 30,850 Other 587 593 Total other assets $ 31,342 $ 31,443 Other current liabilities Other current liabilities is comprised of the following: September 30, 2017 December 31, 2016 Intangible asset acquisition - Stella Alliance $ 1,250 $ 1,000 Contingent consideration - acquisitions 634 855 Warrant settlement payable — 1,025 Customer deposits 2,852 996 Other 4,914 3,263 Total other current liabilities $ 9,650 $ 7,139 Other non-current liabilities Other non-current liabilities is comprised of the following: September 30, 2017 December 31, 2016 Unrecognized tax benefits (including interest) $ 3,494 $ 3,386 Contingent consideration - acquisitions 2,391 2,396 Deferred revenue 1,301 1,132 Other 2,729 2,088 Total other non-current liabilities $ 9,915 $ 9,002 |
Debt Obligations
Debt Obligations | 9 Months Ended |
Sep. 30, 2017 | |
Debt Obligations [Abstract] | |
Debt Obligations | NOTE 7. Debt Obligations On July 25, 2011, the Company issued $60,000 aggregate principal amount of 3.75% Convertible Senior Notes due 2016 (the “Notes”) at par. The Notes were issued pursuant to an indenture, dated as of July 25, 2011, between the Company and Bank of New York Mellon Trust Company, N.A., as Trustee, which includes a form of Note. The Notes provided for the payment of interest semi-annually in arrears on January 15 and July 15 of each year, beginning January 15, 2012, at an annual rate of 3.75%. Concurrently with the issuance of the Notes, the Company purchased a convertible note hedge and sold a warrant. Each of the convertible note hedge and warrant transactions were entered into with an affiliate of the initial purchaser of the Notes. On July 15, 2016, the Company redeemed all of its outstanding 3.75% Convertible Senior Notes with an aggregate principle amount of $60,000. Under the terms of the indenture, holders of the Notes were paid cash up to the aggregate principal amount of the Notes and were issued shares of common stock for the remainder of the conversion, with any fractional shares paid in cash. The conversion resulted in the issuance of 540 shares of common stock of the Company to the bondholders, but resulted in no dilution to Rudolph shareholders as these shares were covered by the convertible note hedge that was entered into by the Company in 2011 at the time of issuance of the Notes. The sale of the warrant gave the holder the right to purchase 4,634 shares of Company common stock at a strike price of $17.00 per share. The warrant had a series of daily expiration dates beginning in October 2016 and ending in January 2017. In 2016, the holder exercised 4,248 warrants, which settled for 80 shares of Company common stock and $10,525 payable in cash, of which $9,500 was paid as of December 31, 2016 and $1,025 was paid in January 2017, at a weighted average stock price of $19.82 per share. The remaining 386 warrants were exercised in January 2017 by the holder for 102 shares of Company common stock at a weighted average stock price of $23.13 per share. The following table presents the amount of interest cost recognized relating to the Notes during the three and nine months ended September 30, 2017 and September 30, 2016: Three Months Ended September Nine Months Ended September 2017 2016 2017 2016 Contractual interest coupon $ — $ 62 $ — $ 1,187 Amortization of interest discount — 100 — 1,893 Amortization of debt issuance costs — 15 — 261 Total interest cost recognized $ — $ 177 $ — $ 3,341 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments And Contingencies [Abstract] | |
Commitments and Contingencies | NOTE 8. Commitments and Contingencies Intellectual Property Indemnification Obligations The Company has entered into agreements with customers that include limited intellectual property indemnification obligations that are customary in the industry. These guarantees generally require the Company to compensate the other party for certain damages and costs incurred as a result of third party intellectual property claims arising from these transactions. The nature of the intellectual property indemnification obligations prevents the Company from making a reasonable estimate of the maximum potential amount it could be required to pay to its customers. Historically, the Company has not made any indemnification payments under such agreements and no amount has been accrued in the accompanying consolidated financial statements with respect to these indemnification guarantees. Warranty Reserves The Company generally provides a warranty on its products for a period of 12 to 15 months against defects in material and workmanship. The Company estimates the costs that may be incurred during the warranty period and records a liability in the amount of such costs at the time revenue is recognized. The Company’s estimate is based primarily on historical experience. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. Settlements of warranty reserves are generally associated with sales that occurred during the 12 to 15 months prior to the quarter-end and warranty accruals are related to sales during the same year. Changes in the Company’s warranty reserves are as follows: Nine Months Ended September 30, 2017 2016 Balance, beginning of the period $ 1,788 $ 1,894 Accruals 2,511 2,076 Usage (2,025 ) (1,958 ) Balance, end of the period $ 2,274 $ 2,012 Warranty reserves are reported in the Condensed Consolidated Balance Sheets within the caption “Accounts payable and accrued liabilities.” Legal Matters From time to time, the Company is subject to legal proceedings and claims in the ordinary course of business. The following reflects an overview of the material activities with regard to these matters through September 30, 2017. On July 28, 2017, Rudolph and Camtek entered into a Settlement Agreement (the “Agreement”) resolving each of the three litigations referenced below (the “Litigations”). • August Technology Corporation and Rudolph Technologies, Inc. v. Camtek, Ltd., No. 11-CV-03707 (MJD/TNL) • Rudolph Technologies, Inc. v. Camtek, Ltd., No. 15-CV-1246 (ADM/BRT) • Camtek, Ltd. v. Rudolph Technologies, Inc., No.: 1:17-CV-11127-PBS Pursuant to the Agreement, in exchange for a $13.0 million cash payment from Camtek to be paid to Rudolph, the parties each agreed to dismiss with prejudice and release the other party from all claims, damages and expenses incurred or raised in the Litigations. The parties also mutually agreed not to pursue further legal actions on any of the claims reflected in the patents which were the subject of the Litigations. Further, subject to limited exceptions, Rudolph and Camtek have agreed not to bring suit against each other for a three year period from the date of the Agreement. Each party expressly denies any liability to the other party with respect to any of the Litigations. The $13.0 million cash payment was received by the Company in October 2017 and the Company subsequently remitted $2.3 million of withholding tax to the Israel Tax Authority associated with the settlement and the prior year patent litigation judgment. Line of Credit The Company has a credit agreement with a bank that provides for a line of credit which is secured by the marketable securities the Company has with the bank. The Company is permitted to borrow up to 70% of the value of eligible securities held at the time the line of credit is accessed. The available line of credit as of September 30, 2017 was approximately $84 million with an available interest rate of 2.8%. The credit agreement is available to the Company until such time that either party terminates the arrangement at their discretion. The Company has not utilized the line of credit to date. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Share Based Compensation [Abstract] | |
Share-Based Compensation | NOTE 9. Share-Based Compensation Restricted Stock Unit Activity A summary of the Company’s nonvested restricted stock unit activity with respect to the nine months ended September 30, 2017 is as follows: Number of Shares Weighted Average Grant Date Fair Value Nonvested at December 31, 2016 1,136 $ 12.30 Granted 274 $ 22.62 Vested (317 ) $ 11.90 Forfeited (47 ) $ 12.92 Nonvested at September 30, 2017 1,046 $ 15.10 Included in the number of shares granted in the table directly above are 38 market performance-based restricted stock units (MPRSUs) granted to executives. Vesting of these MPRSUs is contingent upon the Company meeting certain total shareholder return (TSR) levels as compared to a select peer group over the next three years. The MPRSUs cliff vest at the end of the three-year period and have a maximum potential to vest at 200% (76 shares) based on TSR performance. The related share-based compensation expense is determined based on the estimated fair value of the underlying shares on the date of grant and is recognized straight-line over the vesting term. The estimated fair value per share of the MPRSUs was $25.30 and was calculated using a Monte Carlo simulation model. As of September 30, 2017 and December 31, 2016, there was $11,002 and $8,697 of total unrecognized compensation cost related to restricted stock units granted under the Company’s stock plans, respectively. That cost is expected to be recognized over a weighted average period of 2.4 years and 2.7 years for the respective periods. |
Other Expense (Income)
Other Expense (Income) | 9 Months Ended |
Sep. 30, 2017 | |
Other Income Expense [Abstract] | |
Other Expense (Income) | NOTE 10. Other Expense (Income) Three Months Ended September Nine Months Ended September 2017 2016 2017 2016 Foreign currency exchange losses (gains), net $ 98 $ 553 $ 533 $ 852 Gain on sale of property, plant and equipment — (946 ) — (946 ) Total other expense $ 98 $ (393 ) $ 533 $ (94 ) |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Taxes [Abstract] | |
Income Taxes | NOTE 11. Income Taxes The following table provides details of income taxes: Three Months Ended September Nine Months Ended September 2017 2016 2017 2016 Income before income taxes $ 25,663 $ 12,970 $ 48,022 $ 43,124 Provision for income taxes $ 8,294 $ 3,684 $ 14,309 $ 12,298 Effective tax rate 32.3 % 28.4 % 29.8 % 28.5 % The income tax provision for the three and nine months ended September 30, 2017 was computed based on the Company’s annual forecast of profit by jurisdiction and forecasted effective tax rate for the year. The changes in the Company’s effective tax rate for the three and nine months ended September 30, 2017 compared to the same period for the prior year are primarily due to changes in the mix of forecasted earnings by jurisdictions. The Company currently has a partial valuation allowance recorded against certain foreign and state net operating loss and credit carryforwards where the realizability of such deferred tax assets is substantially in doubt. Each quarter, the Company assesses the likelihood that it will be able to recover its deferred tax assets. The Company considers available evidence, both positive and negative, including forecasted earnings in assessing the need for a valuation allowance. As a result of the Company’s analysis, it concluded that it is more likely than not that a portion of its deferred tax assets will not be realized. Therefore, the Company continues to provide a valuation allowance against certain deferred tax assets. The Company continues to monitor available evidence and may reverse some or all of the remaining valuation allowance in future periods, if appropriate. The Company has a recorded valuation allowance against certain of its deferred tax assets of $1,924 as of September 30, 2017 and December 31, 2016. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Loss Per Share [Abstract] | |
Earnings Per Share | NOTE 12. Earnings Per Share Basic earnings per share is calculated using the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed in the same manner and also gives effect to all dilutive common equivalent shares outstanding during the period. Potential common shares that would have the effect of increasing diluted earnings per share are considered to be anti-dilutive. In accordance with U.S. GAAP, these shares were not included in calculating diluted earnings per share. The following table sets forth the weighted average number of stock options and restricted stock units that have been excluded from the calculation of diluted earnings per share as their effect would have been antidilutive: Three Months Ended September Nine Months Ended September 2017 2016 2017 2016 Stock options — — — 52 Restricted stock units 2 — 9 — Total 2 — 9 52 The Company’s basic and diluted earnings per share amounts are as follows: Three Months Ended September Nine Months Ended September 2017 2016 2017 2016 Numerator: Net income $ 17,369 $ 9,286 $ 33,713 $ 30,826 Denominator: Basic earnings per share - weighted average shares outstanding 31,571 30,988 31,455 31,082 Effect of potential dilutive securities: Employee stock options and restricted stock units - dilutive shares 599 471 669 435 Convertible senior notes - dilutive shares — — — 138 Warrant - dilutive shares — — 2 — Diluted earnings per share - weighted average shares outstanding 32,170 31,459 32,126 31,655 Earnings per share: Basic $ 0.55 $ 0.30 $ 1.07 $ 0.99 Diluted $ 0.54 $ 0.30 $ 1.05 $ 0.97 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2017 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | NOTE 13. Accumulated Other Comprehensive Loss Comprehensive income includes net income, foreign currency translation adjustments, and net unrealized gains and losses on available-for-sale investments. See the Condensed Consolidated Statements of Comprehensive Income for the effect of the components of comprehensive income on the Company’s net income. The components of accumulated other comprehensive loss, net of tax, are as follows: Foreign currency translation adjustments Net unrealized (gains) losses on available-for-sale investments Accumulated other comprehensive loss (income) Beginning Balance, December 31, 2016 $ 2,742 $ 37 $ 2,779 Net current period other comprehensive income (1,344 ) (43 ) (1,387 ) Reclassifications — — — Ending balance, September 30, 2017 $ 1,398 $ (6 ) $ 1,392 |
Segment Reporting and Geographi
Segment Reporting and Geographic Information | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting And Geographic Information [Abstract] | |
Segment Reporting and Geographic Information | NOTE 14. Segment Reporting and Geographic Information The Company is engaged in the design, development, manufacture and support of high-performance control metrology, defect inspection, advanced packaging lithography and data analysis systems used by microelectronics device manufacturers. The Company and its subsidiaries currently operate in a single operating segment: the design, development, manufacture and support of high-performance process control defect inspection and metrology, advanced packaging lithography, and process control software systems used by microelectronics device manufacturers, and therefore the Company has one reportable segment. The Company’s chief operating decision maker is the Chief Executive Officer. The chief operating decision maker allocates resources and assesses performance of the business and other activities at the reporting segment level. The following table lists the different sources of revenue: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Systems and software: Process Control $ 43,821 65 % $ 41,485 67 % $ 135,408 70 % $ 112,407 63 % Lithography 7,010 11 % 3,846 6 % 10,560 5 % 15,496 8 % Software 6,053 9 % 7,379 12 % 20,447 10 % 22,581 13 % Parts 7,101 11 % 5,973 10 % 20,779 11 % 19,126 11 % Services 2,935 4 % 2,958 5 % 7,823 4 % 9,094 5 % Total revenue $ 66,920 100 % $ 61,641 100 % $ 195,017 100 % $ 178,704 100 % For geographical revenue reporting, revenues are attributed to the geographic location in which the product is shipped. Revenue by geographic region is as follows: Three Months Ended September Nine Months Ended September 2017 2016 2017 2016 United States $ 7,666 $ 10,750 $ 25,856 $ 23,784 Taiwan 17,300 18,535 49,960 55,105 Japan 6,268 2,970 12,944 9,071 China 4,151 5,942 24,156 25,591 South Korea 10,852 6,342 36,099 10,191 Singapore 4,664 7,415 9,875 29,341 Other Asia 1,690 1,079 3,249 3,625 Germany 4,488 1,400 12,357 6,331 Other Europe 9,841 7,208 20,521 15,665 Total revenue $ 66,920 $ 61,641 $ 195,017 $ 178,704 The following customer accounted for more than 10% of total revenues for the indicated periods. Nine Months Ended September 2017 2016 Customer A 7.1 % 10.0 % |
Share Repurchase Authorization
Share Repurchase Authorization | 9 Months Ended |
Sep. 30, 2017 | |
Share Repurchase Program [Abstract] | |
Share Repurchase Authorization | NOTE 15. Share Repurchase Authorization In January 2015, the Board of Directors authorized the Company to repurchase up to 3,000 shares of the Company’s common stock with no established end date. The authorization allows for repurchases to be made in the open market or through negotiated transactions from time to time. During the three and nine months ended September 30, 2017, the Company did not repurchase any shares of common stock pursuant to the share repurchase authorization. At September 30, 2017 The following table summarizes the Company’s stock repurchases for the three and nine months ended September 30, 2017 and 2016, respectively: Three Months Ended September Nine Months Ended September 2017 2016 2017 2016 Shares of common stock repurchased — — — 615 Cost of stock repurchased $ — $ — $ — $ 8,044 Average price paid per share $ — $ — $ — $ 13.07 |
Fair Value Measurements - (Tabl
Fair Value Measurements - (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring | The following tables provide the assets and liabilities carried at fair value measured on a recurring basis at September 30, 2017 and December 31, 2016: Fair Value Measurements Using Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) September 30, 2017 Assets: Available-for-sale debt securities: Municipal notes and bonds $ 91,339 $ — $ 91,339 $ — Foreign currency forward contracts 61 — 61 — Total Assets $ 91,400 $ — $ 91,400 $ — Liabilities: Contingent consideration - acquisitions $ 3,025 $ — $ — $ 3,025 Total Liabilities $ 3,025 $ — $ — $ 3,025 December 31, 2016 Assets: Available-for-sale debt securities: Municipal notes and bonds $ 87,029 $ — $ 87,029 $ — Corporate bonds 843 — 843 — Foreign currency forward contracts 312 — 312 — Total Assets $ 88,184 $ — $ 88,184 $ — Liabilities: Contingent consideration - acquisitions $ 3,251 $ — $ — $ 3,251 Total Liabilities $ 3,251 $ — $ — $ 3,251 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | This table presents a reconciliation for all liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the nine months ended September 30, 2017: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Balance at December 31, 2016 $ 3,251 Additions — Total loss included in selling, general and administrative expense 132 Payments (358 ) Transfers into (out of) Level 3 — Balance at September 30, 2017 $ 3,025 |
Marketable Securities - (Tables
Marketable Securities - (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Marketable Securities [Abstract] | |
Schedule of Marketable Securities by Category | At September 30, 2017 and December 31, 2016, marketable securities are categorized as follows: Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Fair Value September 30, 2017 Municipal notes and bonds $ 91,329 $ 20 $ (10 ) $ 91,339 Total marketable securities $ 91,329 $ 20 $ (10 ) $ 91,339 December 31, 2016 Municipal notes and bonds $ 87,088 $ 6 $ (65 ) $ 87,029 Corporate bonds 842 1 — 843 Total marketable securities $ 87,930 $ 7 $ (65 ) $ 87,872 |
Schedule of Amortized Cost and Estimated Fair Value of Marketable Securities Classified by Maturity Date | The amortized cost and estimated fair value of marketable securities classified by the maturity date listed on the security, regardless of the Condensed Consolidated Balance Sheet classification, is as follows at September 30, 2017 and December 31, 2016: September 30, 2017 December 31, 2016 Amortized Cost Fair Value Amortized Cost Fair Value Due within one year $ 83,709 $ 83,720 $ 82,498 $ 82,445 Due after one through five years 7,620 7,619 5,432 5,427 Due after five through ten years — — — — Due after ten years — — — — Total marketable securities $ 91,329 $ 91,339 $ 87,930 $ 87,872 |
Summary of Estimated Fair Value and Gross Unrealized Holding Losses of Marketable Securities in Unrealized Loss Position | The following table summarizes the estimated fair value and gross unrealized holding losses of marketable securities, aggregated by investment instrument and period of time in an unrealized loss position at September 30, 2017 and December 31, 2016: Unrealized Loss Position For Less Than 12 Months Unrealized Loss Position For Greater Than 12 Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses September 30, 2017 Municipal notes and bonds $ 28,178 $ (10 ) $ — $ — Total $ 28,178 $ (10 ) $ — $ — December 31, 2016 Municipal notes and bonds $ 64,918 $ (65 ) $ — $ — Total $ 64,918 $ (65 ) $ — $ — |
Derivative Instruments and He24
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Forward Contracts and Related Fair Values | The dollar equivalent of the U.S. dollar forward contracts and related fair values as of September 30, 2017 and December 31, 2016 were as follows: September 30, 2017 December 31, 2016 Notional amount $ 4,803 $ 3,827 Fair value of asset $ 61 $ 312 |
Purchased Intangible Assets - (
Purchased Intangible Assets - (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Purchased Intangible Assets [Abstract] | |
Schedule of Purchased Intangible Assets | Purchased intangible assets as of September 30, 2017 and December 31, 2016 are as follows: Gross Carrying Amount Accumulated Amortization Net September 30, 2017 Finite-lived intangibles: Developed technology $ 65,777 $ 58,193 $ 7,584 Customer and distributor relationships 9,560 8,748 812 Trade names 4,361 3,751 610 Total identifiable intangible assets $ 79,698 $ 70,692 $ 9,006 December 31, 2016 Finite-lived intangibles: Developed technology $ 65,527 $ 56,986 $ 8,541 Customer and distributor relationships 9,560 8,514 1,046 Trade names 4,361 3,675 686 Total identifiable intangible assets $ 79,448 $ 69,175 $ 10,273 |
Balance Sheet Details - (Tables
Balance Sheet Details - (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Balance Sheet Detail [Abstract] | |
Schedule of Prepaid Expenses And Other Current Assets | Prepaid expenses and other current assets comprised of the following: September 30, 2017 December 31, 2016 Patent Litigation $ 13,000 $ — Other 4,533 4,113 Total prepaid expenses and other current assets $ 17,533 $ 4,113 |
Schedule of Inventories | Inventories are comprised of the following: September 30, 2017 December 31, 2016 Materials $ 38,280 $ 32,993 Work-in-process 21,609 18,764 Finished goods 5,877 13,728 Total inventories $ 65,766 $ 65,485 |
Schedule of Property, Plant and Equipment, Net | Property, plant and equipment, net is comprised of the following: September 30, 2017 December 31, 2016 Land and building $ 2,584 $ 2,584 Machinery and equipment 27,938 23,493 Furniture and fixtures 3,121 2,699 Computer equipment and software 5,778 5,204 Leasehold improvements 9,252 8,116 48,673 42,096 Accumulated depreciation (32,824 ) (30,238 ) Total property, plant and equipment, net $ 15,849 $ 11,858 |
Schedule of Other Assets | Other assets is comprised of the following: September 30, 2017 December 31, 2016 Deferred income taxes $ 30,755 $ 30,850 Other 587 593 Total other assets $ 31,342 $ 31,443 |
Schedule of Other Current Liabilities | Other current liabilities is comprised of the following: September 30, 2017 December 31, 2016 Intangible asset acquisition - Stella Alliance $ 1,250 $ 1,000 Contingent consideration - acquisitions 634 855 Warrant settlement payable — 1,025 Customer deposits 2,852 996 Other 4,914 3,263 Total other current liabilities $ 9,650 $ 7,139 |
Schedule of Other Non-Current Liabilities | Other non-current liabilities is comprised of the following: September 30, 2017 December 31, 2016 Unrecognized tax benefits (including interest) $ 3,494 $ 3,386 Contingent consideration - acquisitions 2,391 2,396 Deferred revenue 1,301 1,132 Other 2,729 2,088 Total other non-current liabilities $ 9,915 $ 9,002 |
Debt Obligations - (Tables)
Debt Obligations - (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Obligations [Abstract] | |
Schedule of Interest Cost Recognized Relating to Notes | The following table presents the amount of interest cost recognized relating to the Notes during the three and nine months ended September 30, 2017 and September 30, 2016: Three Months Ended September Nine Months Ended September 2017 2016 2017 2016 Contractual interest coupon $ — $ 62 $ — $ 1,187 Amortization of interest discount — 100 — 1,893 Amortization of debt issuance costs — 15 — 261 Total interest cost recognized $ — $ 177 $ — $ 3,341 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Commitments And Contingencies [Abstract] | |
Schedule of Changes in Warranty Reserves | Changes in the Company’s warranty reserves are as follows: Nine Months Ended September 30, 2017 2016 Balance, beginning of the period $ 1,788 $ 1,894 Accruals 2,511 2,076 Usage (2,025 ) (1,958 ) Balance, end of the period $ 2,274 $ 2,012 |
Share-Based Compensation - (Tab
Share-Based Compensation - (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Share Based Compensation [Abstract] | |
Summary of Nonvested Restricted Stock Unit Activity | A summary of the Company’s nonvested restricted stock unit activity with respect to the nine months ended September 30, 2017 is as follows: Number of Shares Weighted Average Grant Date Fair Value Nonvested at December 31, 2016 1,136 $ 12.30 Granted 274 $ 22.62 Vested (317 ) $ 11.90 Forfeited (47 ) $ 12.92 Nonvested at September 30, 2017 1,046 $ 15.10 |
Other Expense (Income) (Tables)
Other Expense (Income) (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Other Income Expense [Abstract] | |
Schedule of Other Expense (Income) | Three Months Ended September Nine Months Ended September 2017 2016 2017 2016 Foreign currency exchange losses (gains), net $ 98 $ 553 $ 533 $ 852 Gain on sale of property, plant and equipment — (946 ) — (946 ) Total other expense $ 98 $ (393 ) $ 533 $ (94 ) |
Income Taxes - (Tables)
Income Taxes - (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Income Taxes [Abstract] | |
Schedule of Effective Tax Rate | The following table provides details of income taxes: Three Months Ended September Nine Months Ended September 2017 2016 2017 2016 Income before income taxes $ 25,663 $ 12,970 $ 48,022 $ 43,124 Provision for income taxes $ 8,294 $ 3,684 $ 14,309 $ 12,298 Effective tax rate 32.3 % 28.4 % 29.8 % 28.5 % |
Earnings Per Share - (Tables)
Earnings Per Share - (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table sets forth the weighted average number of stock options and restricted stock units that have been excluded from the calculation of diluted earnings per share as their effect would have been antidilutive: Three Months Ended September Nine Months Ended September 2017 2016 2017 2016 Stock options — — — 52 Restricted stock units 2 — 9 — Total 2 — 9 52 |
Schedule of Earnings Per Share, Basic and Diluted | The Company’s basic and diluted earnings per share amounts are as follows: Three Months Ended September Nine Months Ended September 2017 2016 2017 2016 Numerator: Net income $ 17,369 $ 9,286 $ 33,713 $ 30,826 Denominator: Basic earnings per share - weighted average shares outstanding 31,571 30,988 31,455 31,082 Effect of potential dilutive securities: Employee stock options and restricted stock units - dilutive shares 599 471 669 435 Convertible senior notes - dilutive shares — — — 138 Warrant - dilutive shares — — 2 — Diluted earnings per share - weighted average shares outstanding 32,170 31,459 32,126 31,655 Earnings per share: Basic $ 0.55 $ 0.30 $ 1.07 $ 0.99 Diluted $ 0.54 $ 0.30 $ 1.05 $ 0.97 |
Accumulated Other Comprehensi33
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Components of Accumulated Other Comprehensive Loss, Net of Tax | The components of accumulated other comprehensive loss, net of tax, are as follows: Foreign currency translation adjustments Net unrealized (gains) losses on available-for-sale investments Accumulated other comprehensive loss (income) Beginning Balance, December 31, 2016 $ 2,742 $ 37 $ 2,779 Net current period other comprehensive income (1,344 ) (43 ) (1,387 ) Reclassifications — — — Ending balance, September 30, 2017 $ 1,398 $ (6 ) $ 1,392 |
Segment Reporting and Geograp34
Segment Reporting and Geographic Information - (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting And Geographic Information [Abstract] | |
Schedule of Revenue from External Customers by Products and Services | The following table lists the different sources of revenue: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Systems and software: Process Control $ 43,821 65 % $ 41,485 67 % $ 135,408 70 % $ 112,407 63 % Lithography 7,010 11 % 3,846 6 % 10,560 5 % 15,496 8 % Software 6,053 9 % 7,379 12 % 20,447 10 % 22,581 13 % Parts 7,101 11 % 5,973 10 % 20,779 11 % 19,126 11 % Services 2,935 4 % 2,958 5 % 7,823 4 % 9,094 5 % Total revenue $ 66,920 100 % $ 61,641 100 % $ 195,017 100 % $ 178,704 100 % |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area | For geographical revenue reporting, revenues are attributed to the geographic location in which the product is shipped. Revenue by geographic region is as follows: Three Months Ended September Nine Months Ended September 2017 2016 2017 2016 United States $ 7,666 $ 10,750 $ 25,856 $ 23,784 Taiwan 17,300 18,535 49,960 55,105 Japan 6,268 2,970 12,944 9,071 China 4,151 5,942 24,156 25,591 South Korea 10,852 6,342 36,099 10,191 Singapore 4,664 7,415 9,875 29,341 Other Asia 1,690 1,079 3,249 3,625 Germany 4,488 1,400 12,357 6,331 Other Europe 9,841 7,208 20,521 15,665 Total revenue $ 66,920 $ 61,641 $ 195,017 $ 178,704 |
Schedule of Revenue by Major Customers by Reporting Segments | The following customer accounted for more than 10% of total revenues for the indicated periods. Nine Months Ended September 2017 2016 Customer A 7.1 % 10.0 % |
Share Repurchase Authorization
Share Repurchase Authorization (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Statement Of Stockholders Equity [Abstract] | |
Summary of Stock Repurchases | The following table summarizes the Company’s stock repurchases for the three and nine months ended September 30, 2017 and 2016, respectively: Three Months Ended September Nine Months Ended September 2017 2016 2017 2016 Shares of common stock repurchased — — — 615 Cost of stock repurchased $ — $ — $ — $ 8,044 Average price paid per share $ — $ — $ — $ 13.07 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Details) - Accounting Standards Update 2016-09 - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 123 | $ 1,418 | ||
Proceeds and Excess Tax Benefit from Share-based Compensation | $ 716 | |||
Retained Earnings Reclassification | $ 72 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Carried at Fair Value Measured on a Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Municipal notes and bonds | $ 91,339 | $ 87,029 |
Corporate bonds | 843 | |
Foreign currency forward contracts | 61 | 312 |
Total Assets | 91,400 | 88,184 |
Contingent consideration - acquisitions | 3,025 | 3,251 |
Total Liabilities | 3,025 | 3,251 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Municipal notes and bonds | 0 | 0 |
Corporate bonds | 0 | |
Foreign currency forward contracts | 0 | 0 |
Total Assets | 0 | 0 |
Contingent consideration - acquisitions | 0 | 0 |
Total Liabilities | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Municipal notes and bonds | 91,339 | 87,029 |
Corporate bonds | 843 | |
Foreign currency forward contracts | 61 | 312 |
Total Assets | 91,400 | 88,184 |
Contingent consideration - acquisitions | 0 | 0 |
Total Liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Municipal notes and bonds | 0 | 0 |
Corporate bonds | 0 | |
Foreign currency forward contracts | 0 | 0 |
Total Assets | 0 | 0 |
Contingent consideration - acquisitions | 3,025 | 3,251 |
Total Liabilities | $ 3,025 | $ 3,251 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Estimated discount rates | 8.60% | 9.10% |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation for All Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (level 3) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Fair Value Measurements [Abstract] | |
Balance at December 31, 2016 | $ 3,251 |
Additions | 0 |
Total loss included in selling, general and administrative expense | 132 |
Payments | (358) |
Transfers into (out of) Level 3 | 0 |
Balance at September 30, 2017 | $ 3,025 |
Marketable Securities - Schedul
Marketable Securities - Schedule of Marketable Securities by Category (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 91,329 | $ 87,930 |
Gross Unrealized Holding Gains | 20 | 7 |
Gross Unrealized Holding Losses | (10) | (65) |
Fair Value | 91,339 | 87,872 |
Municipal Notes and Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 91,329 | 87,088 |
Gross Unrealized Holding Gains | 20 | 6 |
Gross Unrealized Holding Losses | (10) | (65) |
Fair Value | $ 91,339 | 87,029 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 842 | |
Gross Unrealized Holding Gains | 1 | |
Gross Unrealized Holding Losses | 0 | |
Fair Value | $ 843 |
Marketable Securities - Sched41
Marketable Securities - Schedule of Amortized Cost and Estimated Fair Value of Marketable Securities Classified by Maturity Date (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Available For Sale Securities Debt Maturities Fair Value [Abstract] | ||
Amortized Cost, Due within one year | $ 83,709 | $ 82,498 |
Amortized Cost, Due after one through five years | 7,620 | 5,432 |
Amortized Cost, Due after five through ten years | 0 | 0 |
Amortized Cost, Due after ten years | 0 | 0 |
Amortized Cost, Total marketable securities | 91,329 | 87,930 |
Fair Value, Due within one year | 83,720 | 82,445 |
Fair Value, Due after one through five years | 7,619 | 5,427 |
Fair Value, Due after five through ten years | 0 | 0 |
Fair Value, Due after ten years | 0 | 0 |
Fair Value, Total marketable securities | $ 91,339 | $ 87,872 |
Marketable Securities - Summary
Marketable Securities - Summary of Estimated Fair Value and Gross Unrealized Holding Losses of Marketable Securities in Unrealized Loss Position (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Loss Position For Less Than 12 Months, Fair Value | $ 28,178 | $ 64,918 |
Unrealized Loss Position For Less Than 12 Months, Gross Unrealized Losses | (10) | (65) |
Unrealized Loss Position For Greater Than 12 Months, Fair Value | 0 | 0 |
Unrealized Loss Position For Greater Than 12 Months, Gross Unrealized Losses | 0 | 0 |
Municipal Notes and Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Loss Position For Less Than 12 Months, Fair Value | 28,178 | 64,918 |
Unrealized Loss Position For Less Than 12 Months, Gross Unrealized Losses | (10) | (65) |
Unrealized Loss Position For Greater Than 12 Months, Fair Value | 0 | 0 |
Unrealized Loss Position For Greater Than 12 Months, Gross Unrealized Losses | $ 0 | $ 0 |
Derivative Instruments and He43
Derivative Instruments and Hedging Activities - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
Decrease in fair value of forward contracts | $ 251 | $ 384 |
Derivative Instruments and He44
Derivative Instruments and Hedging Activities - Forward Contracts and Related Fair Values (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
Notional amount | $ 4,803 | $ 3,827 |
Fair value of asset | $ 61 | $ 312 |
Purchased Intangible Assets -45
Purchased Intangible Assets - (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Finite Lived Intangible Assets [Line Items] | ||
Finite-lived intangibles, Gross Carrying Amount | $ 79,698 | $ 79,448 |
Finite-lived intangibles, Accumulated Amortization | 70,692 | 69,175 |
Finite-lived intangibles, Net | 9,006 | 10,273 |
Developed Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite-lived intangibles, Gross Carrying Amount | 65,777 | 65,527 |
Finite-lived intangibles, Accumulated Amortization | 58,193 | 56,986 |
Finite-lived intangibles, Net | 7,584 | 8,541 |
Customer and Distributor Relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite-lived intangibles, Gross Carrying Amount | 9,560 | 9,560 |
Finite-lived intangibles, Accumulated Amortization | 8,748 | 8,514 |
Finite-lived intangibles, Net | 812 | 1,046 |
Trade Names [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite-lived intangibles, Gross Carrying Amount | 4,361 | 4,361 |
Finite-lived intangibles, Accumulated Amortization | 3,751 | 3,675 |
Finite-lived intangibles, Net | $ 610 | $ 686 |
Purchased Intangible Assets - A
Purchased Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Purchased Intangible Assets [Abstract] | ||||
Intangible asset amortization expense | $ 506 | $ 595 | $ 1,516 | $ 1,785 |
Future amortization expense, Remainder of 2017 | 423 | 423 | ||
Future amortization expense, 2018 | 1,516 | 1,516 | ||
Future amortization expense, 2019 | 1,516 | 1,516 | ||
Future amortization expense, 2020 | 1,313 | 1,313 | ||
Future amortization expense, 2021 | 566 | 566 | ||
Future amortization expense, 2022 | $ 499 | $ 499 |
Balance Sheet Details - Schedul
Balance Sheet Details - Schedule of Prepaid Expenses And Other Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Patent Litigation | $ 13,000 | $ 0 |
Other | 4,533 | 4,113 |
Prepaid expenses and other current assets | $ 17,533 | $ 4,113 |
Balance Sheet Details - Sched48
Balance Sheet Details - Schedule of Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Inventory Details [Abstract] | ||
Materials | $ 38,280 | $ 32,993 |
Work-in-process | 21,609 | 18,764 |
Finished goods | 5,877 | 13,728 |
Total inventories | $ 65,766 | $ 65,485 |
Balance Sheet Details - Additio
Balance Sheet Details - Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Balance Sheet Detail [Abstract] | ||
Inventory valuation reserves | $ 12,775 | $ 10,545 |
Balance Sheet Details - Sched50
Balance Sheet Details - Schedule of Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Property Plant And Equipment [Abstract] | ||
Land and building | $ 2,584 | $ 2,584 |
Machinery and equipment | 27,938 | 23,493 |
Furniture and fixtures | 3,121 | 2,699 |
Computer equipment and software | 5,778 | 5,204 |
Leasehold improvements | 9,252 | 8,116 |
Property, plant and equipment, gross | 48,673 | 42,096 |
Accumulated depreciation | (32,824) | (30,238) |
Total property, plant and equipment, net | $ 15,849 | $ 11,858 |
Balance Sheet Details - Sched51
Balance Sheet Details - Schedule of Other Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Other Assets [Abstract] | ||
Deferred income taxes | $ 30,755 | $ 30,850 |
Other | 587 | 593 |
Total other assets | $ 31,342 | $ 31,443 |
Balance Sheet Details - Sched52
Balance Sheet Details - Schedule of Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Other Liabilities Current [Abstract] | ||
Intangible asset acquisition - Stella Alliance | $ 1,250 | $ 1,000 |
Contingent consideration - acquisitions | 634 | 855 |
Warrant settlement payable | 0 | 1,025 |
Customer deposits | 2,852 | 996 |
Other | 4,914 | 3,263 |
Total other current liabilities | $ 9,650 | $ 7,139 |
Balance Sheet Details - Sched53
Balance Sheet Details - Schedule of Other Non-Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Other Liabilities Noncurrent [Abstract] | ||
Unrecognized tax benefits (including interest) | $ 3,494 | $ 3,386 |
Contingent consideration - acquisitions | 2,391 | 2,396 |
Deferred revenue | 1,301 | 1,132 |
Other | 2,729 | 2,088 |
Total other non-current liabilities | $ 9,915 | $ 9,002 |
Debt Obligations - Additional I
Debt Obligations - Additional Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Jul. 15, 2016 | Jul. 25, 2011 | |
Aggregate principal amount | $ 60,000 | $ 60,000 | |||
Debt instrument interest rate | 3.75% | 3.75% | |||
Issuance of shares of common stock on conversion | 540 | ||||
Warrant or right to purchase shares of common stock | 386 | 4,634 | |||
Warrant or right to purchase shares of common stock, strike price | $ 17 | ||||
Exercised warrants settled in shares | 102 | 4,248 | |||
Exercised warrants payable in cash | $ 10,525 | ||||
Exercised warrants paid in cash | $ 1,025 | $ 0 | $ 9,500 | ||
Weighted average stock price | $ 23.13 | $ 19.82 | |||
Common Stock [Member] | |||||
Exercised warrants settled in shares | 80 |
Debt Obligations - Schedule of
Debt Obligations - Schedule of Interest Cost Recognized Relating to Notes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Debt Obligations [Abstract] | ||||
Contractual interest coupon | $ 0 | $ 62 | $ 0 | $ 1,187 |
Amortization of interest discount | 0 | 100 | 0 | 1,893 |
Amortization of debt issuance costs | 0 | 15 | 0 | 261 |
Total interest cost recognized | $ 0 | $ 177 | $ 0 | $ 3,341 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | Oct. 31, 2017USD ($) | Jul. 28, 2017USD ($)Litigation | Sep. 30, 2017USD ($) | Sep. 30, 2017USD ($) |
Commitments And Contingencies [Line Items] | ||||
Percentage of maximum borrowing capacity of value of eligible securities | 70.00% | |||
Available line of credit | $ 84 | $ 84 | ||
Available interest rate on line of credit | 2.80% | 2.80% | ||
Camtek [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Infringment and damages value | $ 14.6 | |||
Camtek [Member] | Settlement Agreement [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Loss contingency settlement agreement entry date | Jul. 28, 2017 | |||
Number of litigations resolved | Litigation | 3 | |||
Number of periods agreed not to bring suit against each other | 3 years | |||
Camtek [Member] | Settlement Agreement [Member] | Subsequent Event | ||||
Commitments And Contingencies [Line Items] | ||||
Cash payment from Camtek | $ 13 | |||
Camtek [Member] | Settlement Agreement [Member] | Subsequent Event | Israel Tax Authority [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Withholding tax associated with settlement | $ 2.3 | |||
Minimum [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Warranty period | 12 months | |||
Maximum [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Warranty period | 15 months |
Commitments and Contingencies57
Commitments and Contingencies - Schedule of Changes in Warranty Reserves (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Commitments And Contingencies [Abstract] | ||
Balance, beginning of the period | $ 1,788 | $ 1,894 |
Accruals | 2,511 | 2,076 |
Usage | (2,025) | (1,958) |
Balance, end of the period | $ 2,274 | $ 2,012 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Nonvested Restricted Stock Unit Activity (Details) | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Restricted Stock Units Activity [Abstract] | |
Number of Shares, Nonvested beginning balance | shares | 1,136 |
Number of Shares, Granted | shares | 274 |
Number of Shares, Vested | shares | (317) |
Number of Shares, Forfeited | shares | (47) |
Number of Shares, Nonvested ending balance | shares | 1,046 |
Weighted Average Grant Date Fair Value, Nonvested beginning balance | $ / shares | $ 12.30 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 22.62 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 11.90 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 12.92 |
Weighted Average Grant Date Fair Value, Nonvested ending balance | $ / shares | $ 15.10 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Market performance-based restricted stock units granted | 274 | |
Maximum potential market performance-based restricted stock units to vest | 76 | |
Estimated fair value per share of the market performance-based restricted stock units | $ 25.30 | |
Maximum potential market performance-based restricted stock units to vest percentage | 200.00% | |
Market performance-based restricted stock units vesting period | 3 years | |
Total unrecognized compensation cost related to restricted stock units granted | $ 11,002 | $ 8,697 |
Unrecognized compensation cost related to restricted stock units, weighted average period | 2 years 4 months 25 days | 2 years 8 months 13 days |
Market Performance Based Restricted Stock Units [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Market performance-based restricted stock units granted | 38 |
Other Expense (Income) - Schedu
Other Expense (Income) - Schedule of Other Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Other Income Expense [Abstract] | ||||
Foreign currency exchange losses (gains), net | $ 98 | $ 553 | $ 533 | $ 852 |
Gain on sale of property, plant and equipment | 0 | (946) | 0 | (946) |
Total other expense | $ 98 | $ (393) | $ 533 | $ (94) |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Tax Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Taxes [Abstract] | ||||
Income before income taxes | $ 25,663 | $ 12,970 | $ 48,022 | $ 43,124 |
Provision for income taxes | $ 8,294 | $ 3,684 | $ 14,309 | $ 12,298 |
Effective tax rate | 32.30% | 28.40% | 29.80% | 28.50% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Income Taxes [Abstract] | ||
Valuation allowance against deferred tax assets | $ 1,924 | $ 1,924 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Stock options | 2 | 0 | 9 | 52 |
Employee Stock Option [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Stock options | 0 | 0 | 0 | 52 |
Restricted Stock Units (RSUs) [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Stock options | 2 | 0 | 9 | 0 |
Earnings Per Share - Schedule64
Earnings Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 17,369 | $ 9,286 | $ 33,713 | $ 30,826 |
Basic earnings per share - weighted average shares outstanding | 31,571 | 30,988 | 31,455 | 31,082 |
Employee stock options and restricted stock units - dilutive shares | 599 | 471 | 669 | 435 |
Convertible senior notes - dilutive shares | $ 0 | $ 0 | $ 0 | $ 138 |
Warrant - dilutive shares | $ 0 | $ 0 | $ 2 | $ 0 |
Diluted earnings per share - weighted average shares outstanding | 32,170 | 31,459 | 32,126 | 31,655 |
Basic | $ 0.55 | $ 0.30 | $ 1.07 | $ 0.99 |
Diluted | $ 0.54 | $ 0.30 | $ 1.05 | $ 0.97 |
Accumulated Other Comprehensi65
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss, Net of Tax (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Beginning Balance, December 31, 2016 | $ 293,735 |
Ending balance, September 30, 2017 | 332,206 |
Foreign Currency Translation Adjustments [Member] | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Beginning Balance, December 31, 2016 | 2,742 |
Net current period other comprehensive income | (1,344) |
Reclassifications | 0 |
Ending balance, September 30, 2017 | 1,398 |
Net Unrealized (Gains) Losses on Available-For-Sale Investments [Member] | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Beginning Balance, December 31, 2016 | 37 |
Net current period other comprehensive income | (43) |
Reclassifications | 0 |
Ending balance, September 30, 2017 | (6) |
Accumulated Other Comprehensive Loss (Income) [Member] | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Beginning Balance, December 31, 2016 | 2,779 |
Net current period other comprehensive income | (1,387) |
Reclassifications | 0 |
Ending balance, September 30, 2017 | $ 1,392 |
Segment Reporting and Geograp66
Segment Reporting and Geographic Information - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2017Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
Segment Reporting and Geograp67
Segment Reporting and Geographic Information - Schedule of Revenue from External Customers by Products and Services (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 66,920 | $ 61,641 | $ 195,017 | $ 178,704 |
Sales [Member] | Product [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk, percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Process Control [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 43,821 | $ 41,485 | $ 135,408 | $ 112,407 |
Process Control [Member] | Sales [Member] | Product [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk, percentage | 65.00% | 67.00% | 70.00% | 63.00% |
Lithography [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 7,010 | $ 3,846 | $ 10,560 | $ 15,496 |
Lithography [Member] | Sales [Member] | Product [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk, percentage | 11.00% | 6.00% | 5.00% | 8.00% |
Software [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 6,053 | $ 7,379 | $ 20,447 | $ 22,581 |
Software [Member] | Sales [Member] | Product [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk, percentage | 9.00% | 12.00% | 10.00% | 13.00% |
Parts [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 7,101 | $ 5,973 | $ 20,779 | $ 19,126 |
Parts [Member] | Sales [Member] | Product [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk, percentage | 11.00% | 10.00% | 11.00% | 11.00% |
Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 2,935 | $ 2,958 | $ 7,823 | $ 9,094 |
Services [Member] | Sales [Member] | Product [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk, percentage | 4.00% | 5.00% | 4.00% | 5.00% |
Segment Reporting and Geograp68
Segment Reporting and Geographic Information - Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 66,920 | $ 61,641 | $ 195,017 | $ 178,704 |
United States [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 7,666 | 10,750 | 25,856 | 23,784 |
Taiwan [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 17,300 | 18,535 | 49,960 | 55,105 |
Japan [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 6,268 | 2,970 | 12,944 | 9,071 |
China [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 4,151 | 5,942 | 24,156 | 25,591 |
South Korea [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 10,852 | 6,342 | 36,099 | 10,191 |
Singapore [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 4,664 | 7,415 | 9,875 | 29,341 |
Other Asia [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,690 | 1,079 | 3,249 | 3,625 |
Germany [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 4,488 | 1,400 | 12,357 | 6,331 |
Other Europe [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 9,841 | $ 7,208 | $ 20,521 | $ 15,665 |
Segment Reporting and Geograp69
Segment Reporting and Geographic Information - Schedule of Revenue by Major Customers by Reporting Segments (Details) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Sales [Member] | Customer [Member] | Customer A [Member] | ||
Segment Reporting Information [Line Items] | ||
Entity-wide revenue, major customer, percentage | 7.10% | 10.00% |
Share Repurchase Authorizatio70
Share Repurchase Authorization - Additional Information (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share Repurchase Program [Abstract] | ||||
Number of shares authorized to be repurchased | 3,000,000 | 3,000,000 | ||
Shares of common stock repurchased | 0 | 0 | 0 | 615,000 |
Shares available for future repurchase | 711,000 | 711,000 |
Share Repurchase Authorizatio71
Share Repurchase Authorization - Summary of Stock Repurchases (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share Repurchase Program [Abstract] | ||||
Shares of common stock repurchased | 0 | 0 | 0 | 615,000 |
Cost of stock repurchased | $ 0 | $ 0 | $ 0 | $ 8,044 |
Average price paid per share | $ 0 | $ 0 | $ 0 | $ 13.07 |