Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 24, 2018 | Jun. 30, 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-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 31,608,158 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 708,367,640 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current Assets: | ||
Cash and cash equivalents | $ 67,770 | $ 37,859 |
Marketable securities | 109,589 | 87,872 |
Accounts receivable, less allowance of $460 in 2017 and $680 in 2016 | 65,283 | 64,912 |
Inventories | 67,521 | 65,485 |
Income taxes receivable | 7,220 | 2,389 |
Prepaid expenses and other current assets | 4,699 | 4,113 |
Total current assets | 322,082 | 262,630 |
Property, plant and equipment, net | 17,342 | 11,858 |
Goodwill | 22,495 | 22,495 |
Identifiable intangible assets, net | 8,632 | 10,273 |
Deferred income taxes | 14,879 | 30,850 |
Other assets | 492 | 593 |
Total assets | 385,922 | 338,699 |
Current liabilities: | ||
Accounts payable | 13,471 | 10,245 |
Accrued liabilities: | ||
Payroll and related expenses | 10,408 | 8,968 |
Royalties | 494 | 493 |
Warranty | 2,427 | 1,788 |
Deferred revenue | 6,223 | 7,329 |
Other current liabilities | 9,284 | 7,139 |
Total current liabilities | 42,307 | 35,962 |
Other non-current liabilities | 10,461 | 9,002 |
Total liabilities | 52,768 | 44,964 |
Commitments and contingencies (Note 8) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value, 5,000 shares authorized, no shares issued and outstanding at December 31, 2017 and 2016 | 0 | |
Common stock, $0.001 par value, 100,000 shares authorized, 31,604 and 31,127 issued and outstanding at December 31, 2017 and 2016, respectively. | 32 | 31 |
Additional paid-in capital | 386,196 | 381,189 |
Accumulated other comprehensive loss | (1,205) | (2,779) |
Accumulated deficit | (51,869) | (84,706) |
Total stockholders’ equity | 333,154 | 293,735 |
Total liabilities and stockholders’ equity | $ 385,922 | $ 338,699 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Statement Of Financial Position [Abstract] | ||
Allowance for Doubtful Accounts Receivable, Current | $ 460 | $ 680 |
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 31,604,000 | 31,127,000 |
Common Stock, Shares, Outstanding | 31,604,000 | 31,127,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Consolidated Statements Of Operations [Abstract] | |||
Revenues | $ 255,098 | $ 232,780 | $ 221,690 |
Cost of revenues | 120,503 | 109,229 | 102,284 |
Gross profit | 134,595 | 123,551 | 119,406 |
Operating expenses: | |||
Research and development | 46,986 | 44,964 | 41,233 |
Selling, general and administrative | 39,381 | 38,562 | 43,235 |
Amortization | 1,940 | 2,320 | 2,145 |
Patent litigation income | (13,000) | (14,643) | 0 |
Total operating expenses | 75,307 | 71,203 | 86,613 |
Operating Income | 59,288 | 52,348 | 32,793 |
Interest (income) expense, net | (971) | 2,834 | 5,688 |
Other expense (income) | 457 | (354) | 293 |
Income before provision for income taxes | 59,802 | 49,868 | 26,812 |
Provision for income taxes | 26,893 | 12,916 | 8,856 |
Net income | $ 32,909 | $ 36,952 | $ 17,956 |
Earnings per share: | |||
Basic | $ 1.05 | $ 1.19 | $ 0.57 |
Diluted | $ 1.02 | $ 1.16 | $ 0.56 |
Weighted average number of shares outstanding: | |||
Basic | 31,491 | 31,128 | 31,408 |
Diluted | 32,162 | 31,790 | 32,166 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Consolidated Statement Of Comprehensive Income [Abstract] | |||
Net income | $ 32,909 | $ 36,952 | $ 17,956 |
Other comprehensive income (loss): | |||
Change in net unrealized losses on investments, net of tax | (89) | (37) | (33) |
Change in currency translation adjustments | 1,663 | (119) | 62 |
Total comprehensive income | $ 34,483 | $ 36,796 | $ 17,985 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings |
Balance at Dec. 31, 2014 | $ 267,328 | $ 32 | $ 409,562 | $ (2,652) | $ (139,614) |
Balance, Shares at Dec. 31, 2014 | 32,093,000 | ||||
Issuance of shares through share-based compensation plans, net | 330 | 330 | |||
Issuance of shares through share-based compensation plans, net, Shares | 530,000 | ||||
Repurchase of common stock | (20,668) | $ (1) | (20,667) | ||
Repurchase of common stock, Shares | (1,674,000) | ||||
Net income | 17,956 | 17,956 | |||
Share-based compensation | 7,603 | 7,603 | |||
Tax benefit for share-based compensation plans | 16 | 16 | |||
Share-based compensation plan withholdings | (1,916) | (1,916) | |||
Currency translation | 62 | 62 | |||
Unrealized loss on investments | (33) | (33) | |||
Balance at Dec. 31, 2015 | 270,678 | $ 31 | 394,928 | (2,623) | (121,658) |
Balance, Shares at Dec. 31, 2015 | 30,949,000 | ||||
Issuance of shares through share-based compensation plans, net | 850 | $ 0 | 850 | 0 | 0 |
Issuance of shares through share-based compensation plans, net, Shares | 713,000 | ||||
Repurchase of common stock | (8,044) | (8,044) | |||
Repurchase of common stock, Shares | (615,000) | ||||
Net income | 36,952 | 36,952 | |||
Share-based compensation | 4,775 | 4,775 | |||
Tax benefit for share-based compensation plans | 792 | 792 | |||
Share-based compensation plan withholdings | (1,587) | (1,587) | |||
Redemption of stock warrants | (10,525) | (10,525) | |||
Redemption of stock warrants, shares | 80,000 | ||||
Currency translation | (119) | (119) | |||
Unrealized loss on investments | (37) | (37) | |||
Balance at Dec. 31, 2016 | 293,735 | $ 31 | 381,189 | (2,779) | (84,706) |
Balance, Shares at Dec. 31, 2016 | 31,127,000 | ||||
Issuance of shares through share-based compensation plans, net | 624 | $ 1 | 623 | 0 | 0 |
Issuance of shares through share-based compensation plans, net, Shares | 375,000 | ||||
Net income | 32,909 | 32,909 | |||
Share-based compensation | 5,670 | 5,670 | |||
Share-based compensation plan withholdings | (1,358) | (1,358) | |||
Redemption of stock warrants, shares | 102,000 | ||||
Currency translation | 1,663 | 1,663 | |||
Unrealized loss on investments | (89) | (89) | |||
Balance at Dec. 31, 2017 | $ 333,154 | $ 32 | $ 386,196 | $ (1,205) | $ (51,869) |
Balance, Shares at Dec. 31, 2017 | 31,604,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net income | $ 32,909 | $ 36,952 | $ 17,956 |
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities: | |||
Depreciation | 3,990 | 3,677 | 3,951 |
Amortization of convertible note discount and issuance costs | 0 | 2,154 | 3,766 |
Amortization of intangibles and other | 1,940 | 2,320 | 2,145 |
Foreign currency exchange loss | 457 | 592 | 293 |
Gain on disposal of property, plant and equipment | 0 | (946) | 0 |
Change in fair value of contingent consideration | 133 | 170 | (630) |
Share-based compensation | 5,670 | 4,775 | 7,603 |
Provision for doubtful accounts and inventory valuation | 3,608 | 2,971 | 3,826 |
Deferred income taxes | 17,207 | 5,011 | 3,980 |
Change in operating assets and liabilities, excluding effects of business combinations: | |||
Accounts receivable | 430 | (9,279) | (4,336) |
Income taxes | (4,727) | (3,021) | 2,626 |
Inventories | (4,218) | 4,003 | (12,529) |
Prepaid expenses and other assets | (1,686) | 2,038 | 953 |
Accounts payable | 3,198 | 1,169 | 2,254 |
Deferred revenue | (1,122) | 896 | (1,535) |
Other liabilities | 6,582 | (6,057) | 3,486 |
Net cash and cash equivalents provided by operating activities | 64,371 | 47,425 | 33,809 |
Cash flows from investing activities: | |||
Purchases of marketable securities | (164,661) | (146,865) | (237,127) |
Proceeds from sales of marketable securities | 143,349 | 175,460 | 234,105 |
Purchases of property, plant and equipment | (10,210) | (3,291) | (3,359) |
Purchase of intangible assets | (1,000) | (2,000) | (2,696) |
Proceeds from sale of property, plant & equipment | 0 | 1,165 | 0 |
Net cash and cash equivalents (used in) provided by investing activities | (32,522) | 24,469 | (9,077) |
Cash flows from financing activities: | |||
Payment of senior convertible debt | 0 | (60,000) | 0 |
Redemption of stock warrants | (1,025) | (9,500) | 0 |
Purchases of common stock | 0 | (8,044) | (20,668) |
Tax payments related to shares withheld for share-based compensation plans | (1,358) | (1,587) | (1,916) |
Payment of contingent consideration for acquired business | (992) | (622) | (731) |
Issuance of shares through share-based compensation plans | 623 | 850 | 330 |
Net cash and cash equivalents used in financing activities | (2,752) | (78,903) | (22,985) |
Effect of exchange rate changes on cash and cash equivalents | 814 | 314 | (307) |
Net increase (decrease) in cash and cash equivalents | 29,911 | (6,695) | 1,440 |
Cash and cash equivalents at beginning of year | 37,859 | 44,554 | 43,114 |
Cash and cash equivalents at end of year | 67,770 | 37,859 | 44,554 |
Supplemental disclosure of cash flow information: | |||
Income taxes paid, net | 14,605 | 10,980 | 2,013 |
Interest paid | 0 | 2,250 | 2,250 |
Litigation settlement received | 13,000 | 14,643 | 0 |
Non-cash financing and investing activities: | |||
Purchase of intangible assets | $ 0 | $ 0 | $ 3,000 |
Organization and Nature of Oper
Organization and Nature of Operations | 12 Months Ended |
Dec. 31, 2017 | |
Organization And Nature Of Operations [Abstract] | |
Organization and Nature of Operations | 1. Organization and Nature of Operations: Rudolph Technologies, Inc. (“Rudolph” or the “Company”) is a worldwide leader in the design, development, manufacture and support of process control tools that perform macro defect inspections and metrology, lithography systems, and process control analytical software used by semiconductor and Advanced Packaging device manufacturers. The Company has branch sales and service offices in South Korea, Taiwan and Singapore and wholly-owned sales and service subsidiaries in the United States, Europe, Japan and China. The Company operates in a single segment and is a provider of process characterization equipment and software for wafer fabs and advanced packaging facilities. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Summary Of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies: A. Consolidation: The consolidated financial statements reflect the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. B. Revenue Recognition: Revenues are recognized provided that there is persuasive evidence of an arrangement, delivery has occurred or services have been rendered, the sales price is fixed or determinable, and collection of the related receivable is reasonably assured. Revenue recognition generally results at the following points: (1) for all transactions where legal title passes to the customer upon shipment, revenues are recognized upon shipment for all products that have been demonstrated to meet product specifications prior to shipment; the portion of revenues associated with certain installation-related tasks is deferred, and those revenues are recognized upon completion of the installation-related tasks; (2) for products that have not been demonstrated to meet product specifications prior to shipment, revenues are recognized at customer technical acceptance; (3) for transactions with arrangements with multiple elements, such as sales of products that include software and services, the revenues relating to the undelivered elements are deferred using the relative selling price method utilizing vendor-specific objective evidence (“VSOE”) or estimated sales prices (“ESP”) until delivery of the deferred elements. Third-party evidence is not typically used to determine selling prices as to limited availability of reliable competitor products’ selling prices. The ESP is established considering multiple factors including, but not limited to, gross margin objectives, internal costs and competitor pricing strategies. Revenues from parts sales are recognized at the time of shipment. Revenues from training and service contracts are recognized ratably over the training period and contract period. A provision for the estimated cost of fulfilling warranty obligations is recorded at the time the related revenue is recognized. Revenues from software license fees are recognized upon shipment or customer acknowledgment if collection of the resulting receivable is probable, the fee is fixed or determinable, and VSOE exists to allocate a portion of the total fee to any undelivered elements of the arrangement. License support and maintenance revenues are recognized ratably over the contract period. Deferred revenue represents undelivered items, prepaid service contract revenue and prepaid license support and maintenance revenues. Deferred revenue is recognized in accordance with the Company’s revenue recognition policies described above. C. Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates made by management include allowance for doubtful accounts, inventory obsolescence, fair value of assets acquired and liabilities assumed in a business combination (including contingent consideration), recoverability and useful lives of property, plant and equipment and identifiable intangible assets, recoverability of goodwill, recoverability of deferred tax assets, liabilities for product warranty, contingencies, including litigation reserves and share-based payments and liabilities for tax uncertainties. Actual results could differ from those estimates. D. Cash and Cash Equivalents: Cash and cash equivalents include cash and highly liquid debt instruments with original maturities of three months or less when purchased. E. Marketable Securities: The Company 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 and, interest and dividends on available-for-sale securities are included in interest income and other, net. Available-for-sale securities are classified as current assets regardless of their maturity date if they are available for use in current operations. 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. When a decline in fair value is determined to be other-than-temporary, unrealized losses on available-for-sale securities are charged against earnings. The specific identification method is used to determine the gains and losses on marketable securities. For additional information on the Company’s marketable securities, see Note 4 of Notes to the Consolidated Financial Statements. F. Allowance for Doubtful Accounts: The Company evaluates the collectability of accounts receivable based on a combination of factors. Where the Company is aware of circumstances that may impair a specific customer’s ability to meet its financial obligation, the Company records a specific allowance against amounts due, thereby reducing the net recognized receivable to the amount management reasonably believes will be collected. For all other customers, the Company recognizes allowances for doubtful accounts based on the length of time the receivables are outstanding, industry and geographic concentrations, the current business environment and historical experience. G. Inventories: Inventories are stated at the lower of cost or net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less predictable costs of completion, disposal and transportation. Cost is generally determined on a first-in, first-out basis, and includes material, labor and manufacturing overhead costs. The Company reviews and sets standard costs as needed, but at a minimum on an annual basis, at current manufacturing costs in order to approximate actual costs. The Company evaluates inventories for excess quantities and obsolescence. The Company establishes inventory reserves when conditions exist that suggest that inventory may be in excess of anticipated demand or is obsolete based upon assumptions about historical and future demand for the Company’s products and market conditions. In addition, inventories are evaluated for potential obsolescence due to the effect of known and anticipated engineering design changes. Once a reserve has been established, it is maintained until the item to which it relates is scrapped or sold. H. Property, Plant and Equipment: Property, plant and equipment are stated at cost. Depreciation of property, plant and equipment is computed using the straight-line method over the estimated useful lives of the assets, which are fifteen years for buildings, four to seven years for machinery and equipment, seven years for furniture and fixtures, and three years for computer equipment. Leasehold improvements are amortized using the straight-line method over the lesser of the lease term or the estimated useful life of the related asset. Repairs and maintenance costs are expensed as incurred and major renewals and betterments are capitalized. I. Impairment of Long-Lived Assets: Long-lived assets, such as property, plant, and equipment, and identifiable acquired intangible assets with definite useful lives, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset, which is generally based on discounted cash flows. J. Goodwill and Intangible Assets: Intangible assets with finite useful lives are amortized using the straight-line method over their estimated useful lives. Goodwill and intangible assets with indefinite useful lives are not amortized but are tested for impairment at least annually and when there are indications of impairment. Goodwill impairment is deemed to exist if the net book value of a reporting unit exceeds its estimated fair value. The Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, the Company elects this option and after assessing the totality of events or circumstances, the Company determines that it is not likely that the fair value of its reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. The Company has not elected this option to date. The Company estimates the fair value of its reporting unit using the market value of its common stock at October 31 st For additional information on the Company’s goodwill and purchased intangible assets, see Note 5 of Notes to the Consolidated Financial Statements. K. Concentration of Credit Risk: Financial instruments, which potentially subject the Company to concentrations of credit risk, consist primarily of accounts receivable, cash and cash equivalents and marketable securities. The Company performs ongoing credit evaluations of its customers and generally does not require collateral for sales on credit. The Company maintains allowances for potential credit losses. The Company maintains cash and cash equivalents and marketable securities with higher credit quality issuers and monitors the amount of credit exposure to any one issuer. L. Warranties: The Company generally provides a warranty on its products for a period of twelve to fifteen months against defects in material and workmanship. The Company provides for the estimated cost of product warranties at the time revenue is recognized. M. Income Taxes: The Company accounts for income taxes using the asset and liability approach for deferred taxes which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s consolidated financial statements or tax returns. A valuation allowance is recorded to reduce a deferred tax asset to that portion which more likely than not will be realized. The Company does not provide for foreign withholding taxes on the undistributed earnings of its foreign operations as it is the Company’s intention to permanently re-invest undistributed earnings. The impact of an uncertain income tax position is recognized as the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority and includes consideration of interest and penalties. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. The liability for unrecognized tax benefits is classified as non-current as the Company early adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2015-17, “Income Taxes (Topic 740), Balance Sheet Classification of Deferred Taxes” to classify all deferred tax assets and liabilities as non-current. For additional information on the Company’s income taxes, see Note 11 of Notes to the Consolidated Financial Statements. N. Translation of Foreign Currencies: The Company has branch operations in Taiwan, Singapore and South Korea and wholly-owned subsidiaries in the United States (U.S.), Europe, Japan and China. Its international subsidiaries and branches operate primarily through the use of local functional currencies. A substantial portion of the Company’s international systems sales are denominated in U.S. dollars with the exception of Japan. Consequently, we have relatively little exposure to foreign currency exchange risk with respect to these sales. Assets and liabilities are translated at exchange rates in effect at the balance sheet date, and income and expense accounts and cash flow items are translated at average monthly exchange rates during the period. Net exchange gains or losses resulting from the translation of foreign financial statements and the effect of exchange rates on intercompany transactions of a long-term investment nature are recorded directly as a separate component of stockholders’ equity under the caption, “Accumulated other comprehensive loss.” Any foreign currency gains or losses related to transactions are included in operating results. The Company had accumulated exchange losses resulting from the translation of foreign operation financial statements of $1,079 and $2,742 as of December 31, 2017 and 2016, respectively. O. Share-based Compensation: Share-based awards are measured based on the grant-date fair value of the award and recognized over the period from the service inception date through the date the employee is no longer required to provide service to earn the award. Effective upon the Company’s adoption of ASU No. 2016-09, “Improvements to Employee Share-Based Payment Accounting” on January 1, 2017, forfeitures are accounted for as they occur. Prior to the adoption of ASU No. 2016-09, expected forfeitures were included in determining share-based compensation expense. For further information on the adoption of ASU 2016-09, see discussion in this Note below under Recent Accounting Pronouncements. For additional information on the Company’s share-based compensation plans, see Note 9 of Notes to the Consolidated Financial Statements. P. Research and Development and Software Development Costs: Expenditures for research and development are expensed as incurred. Certain software product development costs incurred after technological feasibility has been established are capitalized and amortized, commencing upon the general release of the software product to the Company’s customers, over the economic life of the software product. Annual amortization of capitalized costs is computed using the greater of: (i) the ratio of current gross revenues for the software product over the total of current and anticipated future gross revenues for the software product or (ii) the straight-line basis, typically over seven years. Software product development costs incurred prior to the product reaching technological feasibility are expensed as incurred and included in research and development costs. At December 31, 2017 and 2016, the Company did not have any capitalized software development costs. Q. Shipping and Handling Costs: Shipping and handling cost are included as a component of cost of revenues. R. Fair Value of Financial Instruments: The carrying amounts of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, approximate fair value due to their short maturities. 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. For additional information on the Company’s fair value of financial instruments, see Note 3 of Notes to the Consolidated Financial Statements. S. 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 December 31, 2017 and 2016, these contracts included the future sale of Japanese Yen to purchase U.S. dollars. The foreign currency forward contracts were entered into by the Company’s Japanese subsidiary to hedge a portion of certain intercompany obligations. The forward contracts are not designated as hedges for accounting purposes and therefore, the change in fair value is recorded in selling, general and administrative expenses in the Consolidated Statements of Operations. The Company records its forward contracts at fair value in either prepaid expenses and other current assets or other current liabilities in the Consolidated Balance Sheets. The dollar equivalent of the U.S. dollar forward contracts and related fair values as of December 31, 2017 and 2016 were as follows: December 31, 2017 2016 Notional amount 8,417 3,827 Fair value of asset 45 312 In 2017, 2016 and 2015, the Company recognized gains of $105, $417 and $221, respectively, with respect to forward contracts that matured, respectively. The aggregate notional amount of matured contracts was $9,582, $6,641 and $2,484 for 2017, 2016 and 2015, respectively. T. Contingencies and Litigation The Company is subject to the possibility of losses from various contingencies, including certain legal proceedings, lawsuits and other claims. The Company accrues for a loss contingency when it concludes that the likelihood of a loss is probable and the amount of the loss can be reasonably estimated. If the Company concludes that loss contingencies that could be material to any one of its financial statements are not probable, but are reasonably possible, or are probable, but cannot be estimated, then the Company discloses the nature of the loss contingencies, together with an estimate of the range of possible loss or a statement that such loss is not reasonably estimable. The Company expenses as incurred the costs of defending legal claims against the Company. The Company does not recognize gain contingencies until realized. See Note 8, “Commitments and Contingencies” for a detailed description. U. Recent Accounting Pronouncements: Recently Adopted Effective January 1, 2017, the Company adopted 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 the classification in the Condensed Consolidated Statement of Cash Flows. As a result of the adoption, on a prospective basis, the Company recognized $1,603 of excess tax benefits from stock-based compensation as a benefit in our income tax provision for the twelve months ended December 31, 2017. 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 twelve months ended December 31, 2016 and 2015, which resulted in a reclassification of excess tax benefits from stock-based compensation of $792 and $16, respectively, 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. This ASU is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company is currently evaluating the effect that 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 that 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 that 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 that 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 that 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).” This ASU 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. This ASU 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 effect that 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. Consequently, Topic 606 became effective at the beginning of the first quarter of fiscal year 2018. In addition, the FASB issued subsequent 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 will adopt the new standard on January 1, 2018 using the modified retrospective method. The Company is substantially complete with 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 not be material to its financial position or result of operations. The new standard will require additional disclosure about the nature, amount, timing and uncertainty of revenues 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 will update certain disclosures, as applicable, included in its financial statements to meet the requirements of the new guidance. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 3. 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 December 31, 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) December 31, 2017 Assets: Available-for-sale debt securities: Municipal notes and bonds $ 109,589 $ — $ 109,589 $ — Foreign currency forward contracts 45 — 45 — Total assets $ 109,634 $ — $ 109,634 $ — Liabilities: Contingent consideration - acquisitions $ 2,593 $ — $ — $ 2,593 Total liabilities $ 2,593 $ — $ — $ 2,593 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 model prices utilizing the above observable inputs, for each asset class. Level 3 investments consisted of contingent consideration related to an acquisition for which the Company uses a discounted cash flow model to value these investments. 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 years ended December 31, 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 of all liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31, 2017: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Liabilities: Balance at December 31, 2016 $ 3,251 Total loss due to remeasurement included in selling, general and administrative expense 133 Additions — Payments (791 ) Transfer into (out of) Level 3 — Balance at December 31, 2017 $ 2,593 See Note 4 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 | 12 Months Ended |
Dec. 31, 2017 | |
Marketable Securities [Abstract] | |
Marketable Securities | 4. 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 (income).” 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 December 31, 2017 and 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 December 31, 2017 and 2016, marketable securities are categorized as follows: Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Fair Value December 31, 2017 Municipal notes and bonds $ 109,750 $ — $ 161 $ 109,589 Total marketable securities $ 109,750 $ — $ 161 $ 109,589 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 Consolidated Balance Sheet classification, is as follows at December 31, 2017 and 2016: December 31, 2017 December 31, 2016 Amortized Cost Fair Value Amortized Cost Fair Value Due within one year $ 104,742 $ 104,605 $ 82,499 $ 82,445 Due after one through five years 5,008 4,984 5,431 5,427 Due after five through ten years — — — — Due after ten years — — — — Total marketable securities $ 109,750 $ 109,589 $ 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 December 31, 2017 and 2016. In Unrealized Loss Position For Less Than 12 Months In Unrealized Loss Position For Greater Than 12 Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses December 31, 2017 Municipal notes and bonds $ 98,805 $ 161 $ — $ — Total marketable securities $ 98,805 $ 161 $ — $ — December 31, 2016 Municipal notes and bonds $ 64,918 $ 65 $ — $ — Total marketable securities $ 64,918 $ 65 $ — $ — See Note 3 for additional discussion regarding the fair value of the Company’s marketable securities. |
Goodwill and Purchased Intangib
Goodwill and Purchased Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Identifiable Intangible Assets [Abstract] | |
Goodwill and Purchased Intangible Assets | 5. Goodwill and Purchased Intangible Assets: Goodwill The gross amount of goodwill at both December 31, 2017 and 2016 was $215,367. Reflecting an impairment charge of $192,872 in 2008, the carrying amount of goodwill totaled $22,495 and remained unchanged over both the years ended December 31, 2017 and 2016. Purchased Intangible Assets Purchased intangible assets as of December 31, 2017 and 2016 are as follows: Gross Carrying Amount Accumulated Amortization Net December 31, 2017 Finite-lived intangibles: Developed technology $ 65,827 $ 58,522 $ 7,305 Customer and distributor relationships 9,560 8,818 742 Trade names 4,361 3,776 585 Total identifiable intangible assets $ 79,748 $ 71,116 $ 8,632 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 amounted to $1,940 |
Balance Sheet Details
Balance Sheet Details | 12 Months Ended |
Dec. 31, 2017 | |
Balance Sheet Detail [Abstract] | |
Balance Sheet Details | 6. Balance Sheet Details: Inventories Inventories are comprised of the following: December 31, 2017 2016 Materials $ 39,765 $ 32,993 Work-in-process 20,923 18,764 Finished goods 6,833 13,728 Total inventories $ 67,521 $ 65,485 The Company has established reserves of $13,035 and $10,545 at December 31, 2017 and 2016, respectively, for slow moving and obsolete inventory. During 2017, the Company recorded a net charge in cost of revenues of $3,833 for the write-down of inventory for excess parts, for older product lines and for parts that were rendered obsolete by design and engineering advancements. In 2017, the Company disposed of $1,343 of inventory. During 2016, the Company recorded a net charge in cost of revenues of $2,953 for the write-down of inventory for excess parts, for older product lines and for parts that were rendered obsolete by design and engineering advancements. In 2016, the Company disposed of $1,304 of inventory. Property, Plant and Equipment Property, plant and equipment, net, is comprised of the following: December 31, 2017 2016 Land and building $ 2,584 $ 2,584 Machinery and equipment 29,870 23,493 Furniture and fixtures 3,201 2,699 Computer equipment and software 5,444 5,204 Leasehold improvements 9,472 8,116 50,571 42,096 Accumulated depreciation (33,229 ) (30,238 ) Total property, plant and equipment, net $ 17,342 $ 11,858 Depreciation expense amounted to $3,990, $3,677 and $3,951 for the years ended December 31, 2017, 2016 and 2015, respectively. Other current liabilities is comprised of the following: December 31, 2017 2016 Intangible asset acquisition - Stella Alliance $ 100 $ 1,000 Contingent consideration - acquisitions 634 855 Warrant settlement payable — 1,025 Customer deposits 5,561 996 Other 2,989 3,263 Total other current liabilities $ 9,284 $ 7,139 Other non-current liabilities Other non-current liabilities is comprised of the following: December 31, 2017 2016 Unrecognized tax benefits (including interest) $ 4,660 $ 3,386 Contingent consideration - acquisitions 1,959 2,396 Deferred revenue 983 1,132 Other 2,859 2,088 Total non-current liabilities $ 10,461 $ 9,002 |
Debt Obligations
Debt Obligations | 12 Months Ended |
Dec. 31, 2017 | |
Debt Obligations [Abstract] | |
Debt Obligations | 6. 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 included 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 the Company’s common stock at a strike price of $17.00 per share. The warrant has a series of daily expiration dates beginning in October 2016 and ending in January 2017. From October 13, 2016 to December 31, 2016, the holder exercised 4,248 warrants, which settled for 80 shares of the Company’s 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 the Company’s 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 years ended December 31, 2017, 2016 and 2015. December 31, 2017 2016 2015 Contractual interest coupon $ — $ 1,186 $ 2,250 Amortization of interest discount — 1,893 3,334 Amortization of debt issuance costs — 261 432 Total interest cost recognized $ — $ 3,340 $ 6,016 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies [Abstract] | |
Commitments and Contingencies | 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 twelve to fifteen 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 year-end and warranty accruals are related to sales during the year. Changes in the Company’s warranty reserves are as follows: Year Ended December 31, 2017 2016 2015 Balance, beginning of the year $ 1,788 $ 1,894 $ 1,574 Accruals 3,464 2,405 2,640 Usage (2,825 ) (2,511 ) (2,320 ) Balance, end of the year $ 2,427 $ 1,788 $ 1,894 Legal Matters From time to time, the Company is subject to legal proceedings and claims in the ordinary course of business. As of December 31, 2017, there are no legal proceedings pending or threatened against the Company that management believes are likely to have a material adverse effect on the Company’s consolidated financial position or otherwise. With respect to the litigations that were ongoing during 2017, on July 28, 2017, Rudolph and Camtek, Ltd. (“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 Rudolph, the parties each agreed to dismiss with prejudice, and to 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 that 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 payment was made in October of 2017 and these matters are now closed. Lease Agreements The Company rents space for its corporate headquarters, manufacturing and service operations and sales offices, which expire through 2027. Total rent expense for these facilities amounted to $3,292, $3,296 and $3,525 for the years ended December 31, 2017, 2016 and 2015, respectively. The Company also leases certain equipment pursuant to operating leases, which expire through 2022. Rent expense related to these leases amounted to $111, $99 and $105 for the years ended December 31, 2017, 2016 and 2015, respectively. Total future minimum lease payments under noncancelable operating leases as of December 31, 2017 amounted to $3,292 for 2018 2019 2020 2021 2022 Royalty Agreements Under various licensing agreements, the Company is obligated to pay royalties based on net sales of products sold. There are no minimum annual royalty payments. Royalty expense amounted to $1,117, $586 and $813 for the years ended December 31, 2017, 2016 and 2015, respectively. Open and Committed Purchase Orders The Company has open and committed purchase orders of $60,107 as of December 31, 2017. 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 December 31, 2017 was approximately $87,583 with an available interest rate of 3.0%. 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 and Em
Share-Based Compensation and Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Share Based Compensation And Employee Benefit Plans [Abstract] | |
Share-Based Compensation and Employee Benefit Plans | 9. Share-Based Compensation and Employee Benefit Plans: Share-Based Compensation Plans The Company’s share-based compensation plans are intended to attract and retain employees and to provide an incentive for them to assist the Company to achieve long-range performance goals and to enable them to participate in long-term growth of the Company. The Company settles stock option exercises and restricted stock unit awards with newly issued common shares. The Company established the 2009 Stock Plan (the “2009 Plan”) effective November 1, 2009. The 2009 Plan provides for the grant of 3,300 stock options and other stock awards to employees, directors and consultants at an exercise price equal to or greater than the fair market value of the common stock on the date of grant. Shares of common stock available for future grants from a previous stock plan totaled 2,558 and were carried forward into the allocated balance of the 2009 Plan. Options granted under the 2009 Plan typically grade vest over a five-year period and expire ten years from the date of grant. Restricted stock units granted under the 2009 Plan typically vest over a three to five-year period for employees and one year for directors; however, other vesting periods are allowable under the 2009 Plan. Restricted stock units granted to employees have time based or performance based vesting. As of December 31, 2017 and 2016, there were shares of common stock available for issuance pursuant to future grants under the 2009 Plan totaling 2,049 and 2,247, respectively. The following table reflects share-based compensation expense by type of award: Year Ended December 31, 2017 2016 2015 Share-based compensation expense: Stock options $ 237 $ 318 $ 287 Restricted stock units, including all performance and market based awards 5,433 4,457 7,316 Total share-based compensation 5,670 4,775 7,603 Tax effect on share-based compensation 2,052 1,743 2,767 Net effect on net income $ 3,618 $ 3,032 $ 4,836 Effect on earnings per share: Basic $ (0.11 ) $ (0.10 ) $ (0.15 ) Diluted $ (0.11 ) $ (0.10 ) $ (0.15 ) Stock Option Activity A summary of the Company’s stock option activity with respect to the years ended December 31, 2015, 2016 and 2017 follows: Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding at December 31, 2014 615 $ 10.39 Granted — — Exercised (25 ) 8.19 Expired (100 ) 15.56 Forfeited — — Outstanding at December 31, 2015 490 9.46 Granted — — Exercised (231 ) 7.76 Expired (44 ) 14.74 Forfeited — — Outstanding at December 31, 2016 215 $ 10.19 Granted — — Exercised (142 ) 9.14 Expired — — Forfeited — — Outstanding at December 31, 2017 73 $ 12.22 5.0 $ 853 Vested or expected to vest at December 31, 2017 73 $ 12.22 5.0 $ 853 Exercisable at December 31, 2017 73 $ 12.22 5.0 $ 853 The total intrinsic value of the stock options exercised during 2017, 2016 and 2015 was $853, $1,312 and $108, respectively. The options outstanding and exercisable at December 31, 2017 were in the following exercise price ranges: Options Outstanding Options Exercisable Range of Exercise Prices Shares Weighted Average Remaining Contractual Life (years) Weighted Average Exercise Price Shares Weighted Average Exercise Price 12.22 - 12.22 73 5.0 $ 12.22 73 $ 12.22 As of December 31, 2017, there was no unrecognized compensation cost related to stock options granted under the plans. Non-Employee Stock Options At December 31, 2017 and 2016, the fair value of stock options to non-employees was $268 and $270, respectively. Restricted Stock Unit Activity A summary of the Company’s restricted stock unit activity with respect to the years ended December 31, 2015, 2016 and 2017 follows: Number of Shares Weighted Average Grant Date Fair Value Nonvested at December 31, 2014 805 $ 11.07 Granted 967 $ 10.99 Vested (563 ) $ 10.25 Forfeited (40 ) $ 11.05 Nonvested at December 31, 2015 1,169 $ 11.40 Granted 429 $ 13.20 Vested (413 ) $ 10.80 Forfeited (49 ) $ 11.14 Nonvested at December 31, 2016 1,136 $ 12.30 Granted 280 $ 22.70 Vested (321 ) $ 11.90 Forfeited (81 ) $ 13.78 Nonvested at December 31, 2017 1,014 $ 14.88 Included in the number of shares granted in the table directly above are 38 market performance-based restricted stock units (“MPRSUs”) granted to executives in the first quarter of 2017. 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 December 31, 2017, there was $9,420 of total unrecognized compensation cost related to restricted stock units granted under the plans. That cost is expected to be recognized over a weighted average period of 2.2 years. Employee Stock Purchase Plan The Company established an Employee Stock Purchase Plan (the “ESPP”) effective November 1, 2009. Under the terms of the ESPP, eligible employees may have up to 15% of eligible compensation deducted from their pay and applied to the purchase of shares of Company common stock. The price the employee must pay for each share of stock will be 95% of the fair market value of Company common stock at the end of the applicable six-month purchase period. The ESPP is intended to qualify under Section 423 of the Internal Revenue Code and is a non-compensatory plan as defined by FASB ASC 718, Stock Compensation. No stock-based compensation expense for the ESPP was recorded for the years ended December 31, 2017, 2016 and 2015. Employees purchased 11, 15 and 16 shares during the twelve months ended December 31, 2017, 2016 and 2015, respectively, under the ESPP. As of December 31, 2017 and 2016, there were 2,251 and 1,962 shares available, respectively, for issuance under the ESPP. 401(k) Savings Plan The Company has a 401(k) savings plan that allows employees to contribute up to 100% of their annual compensation to the Plan on a pre-tax or after tax basis, limited to a maximum annual amount as set periodically by the Internal Revenue Service. The plan provides a 50% match of all employee contributions up to 6 percent of the employee’s salary. Company matching contributions to the plan totaled $1,047, $1,017 and $963 for the years ended December 31, 2017, 2016 and 2015, respectively. Profit Sharing Program The Company has a profit sharing program, wherein a percentage of pre-tax profits, at the discretion of the Board of Directors, is provided to all employees who have completed a stipulated employment period. The Company did not make contributions to this program for the years ended December 31, 2017, 2016 and 2015. |
Other Expense (Income)
Other Expense (Income) | 12 Months Ended |
Dec. 31, 2017 | |
Other Income Expense [Abstract] | |
Other Expense (Income) | 10. Other Expense (Income): Other expense (income) is comprised of the following: Year Ended December 31, 2017 2016 2015 Foreign currency exchange losses (gains), net $ 457 $ 592 $ 293 Gain on sale of property, plant and equipment — (946 ) — Total other expense (income) $ 457 $ (354 ) $ 293 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
Income Taxes | 11. Income Taxes: The components of income tax expense are as follows: Year Ended December 31, 2017 2016 2015 Current: Federal $ 6,020 $ 6,084 $ 1,012 State 507 983 439 Foreign 3,159 838 3,425 9,686 7,905 4,876 Deferred: Federal 17,034 4,765 3,881 State 643 184 71 Foreign (470 ) 62 28 17,207 5,011 3,980 Total income tax expense $ 26,893 $ 12,916 $ 8,856 The income before tax is comprised of the following: Year Ended December 31, 2017 2016 2015 Domestic operations $ 57,079 $ 47,599 $ 10,596 Foreign operations $ 2,723 $ 2,269 $ 16,216 The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. federal income tax rate of 35% for the years ended December 31, 2017, 2016 and 2015 to income before provision for income taxes as follows: Year Ended December 31, 2017 2016 2015 Federal income tax provision at statutory rate $ 20,931 $ 17,454 $ 9,384 State taxes, net of federal effect 573 822 370 Foreign taxes net of federal effect (238 ) (1,613 ) 754 Domestic manufacturing benefit (1,569 ) (1,244 ) (553 ) Change in valuation allowance for deferred tax assets, including $1.5 million related to the Tax Act (523 ) — (653 ) Research tax credit (1,559 ) (692 ) (694 ) Deferred tax true-up 41 (1,644 ) (23 ) Remeasurement of deferred tax balances related to the Tax Act 8,020 — — Transition tax on foreign earnings related to the Tax Act (106 ) — — Other 1,323 (167 ) 271 Provision for income taxes $ 26,893 $ 12,916 $ 8,856 Effective tax rate 45 % 26 % 33 % On December 22, 2017, the U.S. government enacted the Tax Cuts and Jobs Act (“Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code that affected 2017, including, but not limited to, (1) requiring a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries that is payable over eight years and (2) bonus depreciation that will allow for full expensing of qualified property. The Tax Act also establishes new tax laws that will affect 2018, including, but not limited to, (1) reduction of the U.S. federal corporate tax rate; (2) the creation of the Base Erosion and Anti-Abuse (“BEAT”), a new minimum tax; (3) a general elimination of U.S. federal income taxes on dividends from foreign subsidiaries; (4) a new provision designed to tax Global Intangible Low-Taxed Income (“GILTI”), which allows for the possibility of using FTCs and a deduction of up to 50 percent to offset the income tax liability (subject to some limitations); (5) the repeal of the domestic production activity deduction; (6) limitations on the deductibility of certain executive compensation; and (7) limitations on the use of FTCs to reduce the U.S. income tax liability. Given the complexity of the 2018 Tax Act provisions identified above, we are still evaluating the effects and have not yet determined what, if any, accounting policies will need to change, nor have we calculated the impact of the above provisions. At December 31, 2017 the Company has not completed its accounting for the tax effects of enactment of the Tax Act, however, the Company was able to make reasonable estimates of certain effects and, therefore, recorded provisional adjustments as follows: • Reduction of U.S. federal corporate tax rate: The Tax Act reduces the corporate tax rate to 21 percent, effective January 1, 2018. For certain of its deferred tax assets and deferred tax liabilities, the Company has recorded a provisional decrease of $8.0 million, respectively, with a corresponding net adjustment to deferred income tax expense of $8.0 million for the year ended December 31, 2017. While the Company is able to make a reasonable estimate of the impact of the reduction in corporate rate, it may be affected by other analyses related to the Tax Act, including, but not limited to, its calculation of deemed repatriation of deferred foreign income and the state tax effect of adjustments made to federal temporary differences. • Transition tax: The transition tax is a tax on previously deferred earnings and profits (“E&P”) of certain of its foreign subsidiaries. To determine the amount of the transition tax, the Company must determine, in addition to other factors, the amount of post-1986 E&P of the relevant subsidiaries, as well as the amount of non-U.S. income taxes paid on such earnings. The Company is able to make a reasonable estimate of the transition tax and recorded a provisional transition tax obligation of $1.5 million with a corresponding adjustment to current income tax expense. The company also computed a Section 78 foreign tax credit from the post-1986 E&P of the relevant subsidiaries that resulted in a current income tax benefit of $1.5 million. However, the Company is continuing to gather additional information to more precisely compute the amount of the transition tax and foreign tax credit. • Valuation allowances: The Company must assess whether its valuation allowance analyses are affected by various aspects of the Tax Act. Since, as discussed herein, the Company has recorded provisional amounts related to certain portions of the Tax Act, any corresponding determination of the need for or change in a valuation allowance is also provisional. The Company concluded that with all the facts that are available at this point in time that that a full valuation allowance on all carry forward foreign tax credits were needed. The Company recorded the valuation allowance as of December 31, 2017 in the amount of $1.5 million with a corresponding adjustment to current income tax expense. Deferred tax assets and liabilities are comprised of the following: December 31, 2017 2016 Research and development credit carryforward $ 216 $ 3,784 Reserves and accruals not currently deductible 1,883 2,932 Deferred revenue 1,075 2,286 Domestic net operating loss carryforwards 892 1,049 Foreign net operating loss and credit carryforwards 2,551 4,362 Intangibles 5,388 11,002 Share-based compensation 1,500 2,249 Inventory obsolescence reserve 3,260 4,454 Depreciation — 206 Other 1,135 832 Gross deferred tax assets 17,900 33,156 Valuation allowance for deferred tax assets (2,447 ) (1,924 ) Deferred tax assets after valuation allowance 15,453 31,232 Gross deferred tax liabilities (574 ) (382 ) Net deferred tax assets $ 14,879 $ 30,850 At December 31, 2017 and 2016, the Company had valuation allowances of $2,447 and $1,924, respectively, on certain of the Company’s deferred tax assets to reflect the deferred tax assets at the net amount that is more likely than not to be realized. The Company recorded a full valuation allowance on all foreign tax credits as of December 31, 2017 in the amount of $1,542, offset by reversal of valuation allowance against expired state research and developments credits in the amount of $741 and the reversal of a prior valuation allowance based on current year utilization in the amount of $278. In assessing the realizability of deferred tax assets, the Company uses a more likely than not standard. If it is determined that it is more-likely-than-not that deferred tax assets will not be realized, a valuation allowance must be established against the deferred tax assets. The ultimate realization of the assets is dependent on the generation of future taxable income during the periods in which the associated temporary differences become deductible. Management considers the scheduled reversal of deferred income tax liabilities, projected future taxable income and tax planning strategies when making this assessment. In making the determination that it is more likely than not that the Company’s deferred tax assets will be realized as of December 31, 2017, the Company relied primarily on projected future taxable income. At December 31, 2017, the Company had federal, state and foreign net operating loss carryforwards of $591, $171 and $1,134, respectively. The federal, state and foreign net operating loss carryforwards expire on various dates through December 31, 2032, December 31, 2032 and December 31, 2026, respectively. At December 31, 2017, the Company had federal and state research & development credits and foreign tax credit carryforwards of $118, $318 and $1,542, respectively. The federal research & development credits are set to expire at December 31, 2037. The state research & development credits are set to expire at various dates through December 21, 2024. The foreign tax credit is set to expire at various dates through December 31, 2027 A provision has not been made at December 31, 2017 for U.S. or additional foreign withholding taxes on approximately $7,663 of undistributed earnings not subject to the transition tax of the Company’s foreign subsidiaries in Europe and Japan nor on any additional outside basis differences inherent in these entitites because it is the present intention of management to permanently reinvest these undistributed earnings. It is not practical to estimate the amount of tax that might be payable if some or all of such earnings were to be repatriated. The total amount of unrecognized tax benefits are as follows: December 31, 2017 2016 2015 Unrecognized tax benefits, opening balance $ 4,827 $ 5,236 $ 5,292 Gross increases—tax positions in prior period 171 118 136 Gross decreases—tax positions in prior period (362 ) (735 ) (755 ) Gross increases—current-period tax positions 244 208 563 Lapse of statute of limitations — — — Unrecognized tax benefits, ending balance $ 4,880 $ 4,827 $ 5,236 Included in the ending balance at December 31, 2017 and 2016 are unrecognized tax benefits of $4,403 and $4,275, respectively, which would be reflected as an adjustment to income tax expense if recognized. The year over year increase from 2016 to 2017 is primarily due to additional unrecognized tax benefits related to federal tax exposures. It is reasonably possible that certain amounts of unrecognized tax benefits may reverse in the next 12 months; however, the Company does not expect such reversals to have a significant impact on its results of operations or financial position. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense. During the years ended December 31, 2017, 2016 and 2015, the Company recognized approximately $246, $76 and $71, respectively, in interest and penalties expense associated with uncertain tax positions. As of December 31, 2017 and 2016, the Company had accrued interest and penalties expense related to unrecognized tax benefits of $1,190 and $1,019, respectively. The Company is subject to U.S. federal income tax as well as income tax in multiple state and foreign jurisdictions. The Company files U.S. federal, U.S. state and foreign tax returns. For U.S. federal tax purposes, the Company is generally no longer subject to tax examinations for years prior to 2013. For U.S. state tax returns, the Company is generally no longer subject to tax examinations for years prior to 2012. For foreign tax purposes, the Company is generally no longer subject to examination for tax periods 2012 and prior. Certain carryforward tax attributes generated in prior years remain subject to examination and adjustment. The Company believes that adequate amounts have been reserved for any adjustments that may ultimately result from any future examinations of these years. In the normal course of business, the Company is subject to tax audits in various jurisdictions, and such jurisdictions may assess additional income taxes or other taxes against it. Although the Company believes its tax estimates are reasonable, the final determination of tax audits and any related litigation could be materially different from the Company’ s historical income tax provisions and accruals. The results of an audit or litigation could have a material adverse effect on the Company’ s results of operations or cash flows in the period or periods for which that determination is made. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | 12. 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 Consolidated Statements of Comprehensive Income for the effect of the components of comprehensive income to our net income. The components of accumulated other comprehensive loss, net of tax, are as follows: Foreign currency translation adjustments Net unrealized losses on available-for- sale investments Accumulated other comprehensive loss Beginning Balance, December 31, 2015 $ 2,623 $ — $ 2,623 Net current period other comprehensive loss 119 37 156 Reclassifications — — — Ending balance, December 31, 2016 2,742 37 2,779 Net current period other comprehensive loss (1,663 ) 89 (1,574 ) Reclassifications — — — Ending balance, December 31, 2017 $ 1,079 $ 126 $ 1,205 |
Segment Reporting and Geographi
Segment Reporting and Geographic Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting And Geographic Information [Abstract] | |
Segment Reporting and Geographic Information | 13. Segment Reporting and Geographic Information: The Company is engaged in the design, development, manufacture and support of process control defect inspection and metrology, advanced packaging lithography and data analysis systems and software used by microelectronics device manufacturers. The Company and its subsidiaries currently operate in a single operating segment: the design, development, manufacture and support of process control defect inspection and metrology, advanced packaging lithography, and data analysis systems and software used by microelectronics device manufacturers and, therefore, have 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 reportable segment level. The following table lists the different sources of revenues: Year Ended December 31, 2017 2016 2015 Systems and Software: Process control $ 177,177 70 % $ 146,652 63 % $ 144,858 66 % Lithography 14,234 5 % 18,949 8 % 14,519 6 % Software 25,473 10 % 29,795 13 % 27,291 12 % Parts 27,143 11 % 25,343 11 % 24,072 11 % Services 11,071 4 % 12,041 5 % 10,950 5 % Total revenues $ 255,098 100 % $ 232,780 100 % $ 221,690 100 % The Company’s significant operations outside the United States include sales, service and application offices in Europe and Asia. For geographical reporting, revenues are attributed to the geographic location in which the product is shipped. Revenues by geographic region are as follows: Year Ended December 31, 2017 2016 2015 Revenues from third parties: United States $ 36,104 $ 30,876 $ 46,778 Taiwan 63,079 68,211 55,548 South Korea 44,180 15,556 14,221 Singapore 12,775 35,517 27,310 Austria 2,601 2,049 3,557 Japan 18,943 11,875 13,216 Germany 15,580 9,759 29,378 China 35,925 33,720 17,152 Other Europe 21,167 18,720 11,403 Other Asia 4,744 6,497 3,127 Total revenues $ 255,098 $ 232,780 $ 221,690 No individual end user customer accounted for more than 10% of the Company’s revenues in 2017, 2016 and 2015. The Company does not have purchase contracts with any of its customers that obligate them to continue to purchase its products. At December 31, 2017, no individual customer accounted for more than 10% of net accounts receivable. At December 31, 2016, one customer, Taiwan Semiconductor Manufacturing Co. Ltd., accounted for more than 10% of net accounts receivable. Substantially all of the Company’s long-lived assets are located within the United States of America. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Loss Per Share [Abstract] | |
Earnings Per Share | 14. 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 stock equivalent shares outstanding during the period. Potential common shares that would have the effect of increasing diluted earnings per share are considered to be antidilutive. In accordance with U.S. GAAP, these shares were not included in calculating diluted earnings per share. For the year ended December 31, 2017, the weighted average number of stock options and restricted stock units excluded from the computation of diluted earnings per share were 0 and 8, respectively. For the year ended December 31, 2016, the weighted average number of stock options and restricted stock units excluded from the computation of diluted earnings per share were 39 and 0, respectively. For the year ended December 31, 2015, the weighted average number of stock options and restricted stock units excluded from the computation of diluted earnings per share were 15 and 190, respectively. For the years ended December 31, 2017, 2016 and 2015, diluted earnings per share-weighted average shares outstanding included the effect resulting from assumed conversion of the Notes and warrants. The computations of basic and diluted income per share for the years ended December 31, 2017, 2016, and 2015 are as follows: December 31, 2017 2016 2015 Numerator: Net income $ 32,909 $ 36,952 $ 17,956 Denominator: Basic earnings per share - weighted average shares outstanding 31,491 31,128 31,408 Effect of potential diluted securities: Employee stock options and restricted stock units - dilutive shares 670 467 692 Convertible senior notes - dilutive shares — 103 66 Warrants - dilutive shares 1 92 — Diluted earnings per share - weighted average shares outstanding 32,162 31,790 32,166 Earnings per share: Basic $ 1.05 $ 1.19 $ 0.57 Diluted $ 1.02 $ 1.16 $ 0.56 |
Share Repurchase Authorization
Share Repurchase Authorization | 12 Months Ended |
Dec. 31, 2017 | |
Share Repurchase Program [Abstract] | |
Share Repurchase Authorization | 15. Shares 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. At December 31, 2017, there were 711 shares available for future stock repurchases under this repurchase authorization. Shares of common stock purchased under the share repurchase authorization are retired. The following table summarizes the Company’s stock repurchases for December 31, 2017, 2016 and 2015: Year Ended December 31, 2017 2016 2015 Shares of common stock repurchased — 615 1,674 Cost of stock repurchased $ - $ 8,044 $ 20,668 Average price paid per share $ - $ 13.07 $ 12.35 |
Quarterly Consolidated Financia
Quarterly Consolidated Financial Data (unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Consolidated Financial Data Unaudited [Abstract] | |
Quarterly Consolidated Financial Data (unaudited) | 16. Quarterly Consolidated Financial Data (unaudited): The following tables present certain unaudited consolidated quarterly financial information for the years ended December 31, 2017 and December 31, 2016. In the opinion of the Company’s management, this quarterly information has been prepared on the same basis as the consolidated financial statements and includes all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the information for the periods presented. The results of operations for any quarter are not necessarily indicative of results for the full year or for any future period. Year-over-year quarterly comparisons of the Company’s results of operations may not be meaningful, as the sequential quarterly comparisons set forth below tend to reflect the cyclical activity of the semiconductor industry as a whole. Other quarterly fluctuations in expenses are related directly to sales activity and volume and may also reflect the timing of operating expenses incurred throughout the year and the purchase accounting effects of business combinations. Quarters Ended March 31, 2017 June 30, 2017 September 2017 December 31, 2017 Total Revenues $ 60,679 $ 67,418 $ 66,920 $ 60,081 $ 255,098 Gross profit 31,868 35,456 35,145 32,126 134,595 Income before income taxes 9,607 12,752 25,663 11,780 59,802 Net income (loss) 7,151 9,193 17,369 (804 ) 32,909 Income (loss) per share: Basic $ 0.23 $ 0.29 $ 0.55 $ (0.03 ) $ 1.05 Diluted $ 0.22 $ 0.29 $ 0.54 $ (0.03 ) $ 1.02 Weighted average number of shares outstanding: Basic 31,290 31,501 31,571 31,597 31,491 Diluted 32,058 32,146 32,170 31,597 32,162 Quarters Ended March 31, 2016 June 30, 2016 September 30, 2016 December 31, 2016 Total Revenues $ 54,362 $ 62,701 $ 61,641 $ 54,076 $ 232,780 Gross profit 29,045 34,193 32,449 27,864 123,551 Income before income taxes 19,561 10,593 12,970 6,744 49,868 Net income 13,939 7,601 9,286 6,126 36,952 Income per share: Basic $ 0.45 $ 0.25 $ 0.30 $ 0.20 $ 1.19 Diluted $ 0.44 $ 0.24 $ 0.30 $ 0.19 $ 1.16 Weighted average number of shares outstanding: Basic 30,957 30,779 30,988 31,085 31,128 Diluted 31,654 31,754 31,459 32,018 31,790 |
Schedule of Valuation and Quali
Schedule of Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2017 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure | SCHEDULE OF VALUATION AND QUALIFYING ACCOUNTS (In thousands) Column A Column B Column C Column D Column E Description Balance at Beginning of Period Charged to (Recovery of) Costs and Expense Charged to Other Accounts (net) Deductions Balance at End of Period Year 2017: Allowance for doubtful accounts $ 680 $ (222 ) $ — $ (2 ) $ 460 Deferred tax valuation allowance 1,924 626 (103 ) — 2,447 Year 2016: Allowance for doubtful accounts $ 713 $ 5 $ — $ 38 $ 680 Deferred tax valuation allowance 2,205 71 (352 ) — 1,924 Year 2015: Allowance for doubtful accounts $ 1,279 $ 124 $ — $ 690 $ 713 Deferred tax valuation allowance 2,445 (128 ) (112 ) — 2,205 |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Summary Of Significant Accounting Policies [Abstract] | |
Consolidation | A. Consolidation: The consolidated financial statements reflect the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. |
Revenue Recognition | B. Revenue Recognition: Revenues are recognized provided that there is persuasive evidence of an arrangement, delivery has occurred or services have been rendered, the sales price is fixed or determinable, and collection of the related receivable is reasonably assured. Revenue recognition generally results at the following points: (1) for all transactions where legal title passes to the customer upon shipment, revenues are recognized upon shipment for all products that have been demonstrated to meet product specifications prior to shipment; the portion of revenues associated with certain installation-related tasks is deferred, and those revenues are recognized upon completion of the installation-related tasks; (2) for products that have not been demonstrated to meet product specifications prior to shipment, revenues are recognized at customer technical acceptance; (3) for transactions with arrangements with multiple elements, such as sales of products that include software and services, the revenues relating to the undelivered elements are deferred using the relative selling price method utilizing vendor-specific objective evidence (“VSOE”) or estimated sales prices (“ESP”) until delivery of the deferred elements. Third-party evidence is not typically used to determine selling prices as to limited availability of reliable competitor products’ selling prices. The ESP is established considering multiple factors including, but not limited to, gross margin objectives, internal costs and competitor pricing strategies. Revenues from parts sales are recognized at the time of shipment. Revenues from training and service contracts are recognized ratably over the training period and contract period. A provision for the estimated cost of fulfilling warranty obligations is recorded at the time the related revenue is recognized. Revenues from software license fees are recognized upon shipment or customer acknowledgment if collection of the resulting receivable is probable, the fee is fixed or determinable, and VSOE exists to allocate a portion of the total fee to any undelivered elements of the arrangement. License support and maintenance revenues are recognized ratably over the contract period. Deferred revenue represents undelivered items, prepaid service contract revenue and prepaid license support and maintenance revenues. Deferred revenue is recognized in accordance with the Company’s revenue recognition policies described above. |
Estimates | C. Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates made by management include allowance for doubtful accounts, inventory obsolescence, fair value of assets acquired and liabilities assumed in a business combination (including contingent consideration), recoverability and useful lives of property, plant and equipment and identifiable intangible assets, recoverability of goodwill, recoverability of deferred tax assets, liabilities for product warranty, contingencies, including litigation reserves and share-based payments and liabilities for tax uncertainties. Actual results could differ from those estimates. |
Cash and Cash Equivalents | D. Cash and Cash Equivalents: Cash and cash equivalents include cash and highly liquid debt instruments with original maturities of three months or less when purchased. |
Marketable Securities | E. Marketable Securities: The Company 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 and, interest and dividends on available-for-sale securities are included in interest income and other, net. Available-for-sale securities are classified as current assets regardless of their maturity date if they are available for use in current operations. 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. When a decline in fair value is determined to be other-than-temporary, unrealized losses on available-for-sale securities are charged against earnings. The specific identification method is used to determine the gains and losses on marketable securities. For additional information on the Company’s marketable securities, see Note 4 of Notes to the Consolidated Financial Statements. |
Allowance for Doubtful Accounts | F. Allowance for Doubtful Accounts: The Company evaluates the collectability of accounts receivable based on a combination of factors. Where the Company is aware of circumstances that may impair a specific customer’s ability to meet its financial obligation, the Company records a specific allowance against amounts due, thereby reducing the net recognized receivable to the amount management reasonably believes will be collected. For all other customers, the Company recognizes allowances for doubtful accounts based on the length of time the receivables are outstanding, industry and geographic concentrations, the current business environment and historical experience. |
Inventories | G. Inventories: Inventories are stated at the lower of cost or net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less predictable costs of completion, disposal and transportation. Cost is generally determined on a first-in, first-out basis, and includes material, labor and manufacturing overhead costs. The Company reviews and sets standard costs as needed, but at a minimum on an annual basis, at current manufacturing costs in order to approximate actual costs. The Company evaluates inventories for excess quantities and obsolescence. The Company establishes inventory reserves when conditions exist that suggest that inventory may be in excess of anticipated demand or is obsolete based upon assumptions about historical and future demand for the Company’s products and market conditions. In addition, inventories are evaluated for potential obsolescence due to the effect of known and anticipated engineering design changes. Once a reserve has been established, it is maintained until the item to which it relates is scrapped or sold. |
Property Plant and Equipment | H. Property, Plant and Equipment: Property, plant and equipment are stated at cost. Depreciation of property, plant and equipment is computed using the straight-line method over the estimated useful lives of the assets, which are fifteen years for buildings, four to seven years for machinery and equipment, seven years for furniture and fixtures, and three years for computer equipment. Leasehold improvements are amortized using the straight-line method over the lesser of the lease term or the estimated useful life of the related asset. Repairs and maintenance costs are expensed as incurred and major renewals and betterments are capitalized. |
Impairment of Long Lived Assets | I. Impairment of Long-Lived Assets: Long-lived assets, such as property, plant, and equipment, and identifiable acquired intangible assets with definite useful lives, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset, which is generally based on discounted cash flows. |
Goodwill and Intangible Assets | J. Goodwill and Intangible Assets: Intangible assets with finite useful lives are amortized using the straight-line method over their estimated useful lives. Goodwill and intangible assets with indefinite useful lives are not amortized but are tested for impairment at least annually and when there are indications of impairment. Goodwill impairment is deemed to exist if the net book value of a reporting unit exceeds its estimated fair value. The Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, the Company elects this option and after assessing the totality of events or circumstances, the Company determines that it is not likely that the fair value of its reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. The Company has not elected this option to date. The Company estimates the fair value of its reporting unit using the market value of its common stock at October 31 st For additional information on the Company’s goodwill and purchased intangible assets, see Note 5 of Notes to the Consolidated Financial Statements. |
Concentration of Credit Risk | K. Concentration of Credit Risk: Financial instruments, which potentially subject the Company to concentrations of credit risk, consist primarily of accounts receivable, cash and cash equivalents and marketable securities. The Company performs ongoing credit evaluations of its customers and generally does not require collateral for sales on credit. The Company maintains allowances for potential credit losses. The Company maintains cash and cash equivalents and marketable securities with higher credit quality issuers and monitors the amount of credit exposure to any one issuer. |
Warranties | L. Warranties: The Company generally provides a warranty on its products for a period of twelve to fifteen months against defects in material and workmanship. The Company provides for the estimated cost of product warranties at the time revenue is recognized. |
Income Taxes | M. Income Taxes: The Company accounts for income taxes using the asset and liability approach for deferred taxes which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s consolidated financial statements or tax returns. A valuation allowance is recorded to reduce a deferred tax asset to that portion which more likely than not will be realized. The Company does not provide for foreign withholding taxes on the undistributed earnings of its foreign operations as it is the Company’s intention to permanently re-invest undistributed earnings. The impact of an uncertain income tax position is recognized as the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority and includes consideration of interest and penalties. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. The liability for unrecognized tax benefits is classified as non-current as the Company early adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2015-17, “Income Taxes (Topic 740), Balance Sheet Classification of Deferred Taxes” to classify all deferred tax assets and liabilities as non-current. For additional information on the Company’s income taxes, see Note 11 of Notes to the Consolidated Financial Statements. |
Translation of Foreign Currencies | N. Translation of Foreign Currencies: The Company has branch operations in Taiwan, Singapore and South Korea and wholly-owned subsidiaries in the United States (U.S.), Europe, Japan and China. Its international subsidiaries and branches operate primarily through the use of local functional currencies. A substantial portion of the Company’s international systems sales are denominated in U.S. dollars with the exception of Japan. Consequently, we have relatively little exposure to foreign currency exchange risk with respect to these sales. Assets and liabilities are translated at exchange rates in effect at the balance sheet date, and income and expense accounts and cash flow items are translated at average monthly exchange rates during the period. Net exchange gains or losses resulting from the translation of foreign financial statements and the effect of exchange rates on intercompany transactions of a long-term investment nature are recorded directly as a separate component of stockholders’ equity under the caption, “Accumulated other comprehensive loss.” Any foreign currency gains or losses related to transactions are included in operating results. The Company had accumulated exchange losses resulting from the translation of foreign operation financial statements of $1,079 and $2,742 as of December 31, 2017 and 2016, respectively. |
Share based Compensation | O. Share-based Compensation: Share-based awards are measured based on the grant-date fair value of the award and recognized over the period from the service inception date through the date the employee is no longer required to provide service to earn the award. Effective upon the Company’s adoption of ASU No. 2016-09, “Improvements to Employee Share-Based Payment Accounting” on January 1, 2017, forfeitures are accounted for as they occur. Prior to the adoption of ASU No. 2016-09, expected forfeitures were included in determining share-based compensation expense. For further information on the adoption of ASU 2016-09, see discussion in this Note below under Recent Accounting Pronouncements. For additional information on the Company’s share-based compensation plans, see Note 9 of Notes to the Consolidated Financial Statements. |
Research and Development and Software Development Costs | P. Research and Development and Software Development Costs: Expenditures for research and development are expensed as incurred. Certain software product development costs incurred after technological feasibility has been established are capitalized and amortized, commencing upon the general release of the software product to the Company’s customers, over the economic life of the software product. Annual amortization of capitalized costs is computed using the greater of: (i) the ratio of current gross revenues for the software product over the total of current and anticipated future gross revenues for the software product or (ii) the straight-line basis, typically over seven years. Software product development costs incurred prior to the product reaching technological feasibility are expensed as incurred and included in research and development costs. At December 31, 2017 and 2016, the Company did not have any capitalized software development costs. |
Shipping and Handling Costs | Q. Shipping and Handling Costs: Shipping and handling cost are included as a component of cost of revenues. |
Fair Value of Financial Instruments | R. Fair Value of Financial Instruments: The carrying amounts of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, approximate fair value due to their short maturities. 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. For additional information on the Company’s fair value of financial instruments, see Note 3 of Notes to the Consolidated Financial Statements. |
Derivative Instruments and Hedging Activities | S. 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 December 31, 2017 and 2016, these contracts included the future sale of Japanese Yen to purchase U.S. dollars. The foreign currency forward contracts were entered into by the Company’s Japanese subsidiary to hedge a portion of certain intercompany obligations. The forward contracts are not designated as hedges for accounting purposes and therefore, the change in fair value is recorded in selling, general and administrative expenses in the Consolidated Statements of Operations. The Company records its forward contracts at fair value in either prepaid expenses and other current assets or other current liabilities in the Consolidated Balance Sheets. The dollar equivalent of the U.S. dollar forward contracts and related fair values as of December 31, 2017 and 2016 were as follows: December 31, 2017 2016 Notional amount 8,417 3,827 Fair value of asset 45 312 In 2017, 2016 and 2015, the Company recognized gains of $105, $417 and $221, respectively, with respect to forward contracts that matured, respectively. The aggregate notional amount of matured contracts was $9,582, $6,641 and $2,484 for 2017, 2016 and 2015, respectively. |
Contingencies and Litigation | T. Contingencies and Litigation The Company is subject to the possibility of losses from various contingencies, including certain legal proceedings, lawsuits and other claims. The Company accrues for a loss contingency when it concludes that the likelihood of a loss is probable and the amount of the loss can be reasonably estimated. If the Company concludes that loss contingencies that could be material to any one of its financial statements are not probable, but are reasonably possible, or are probable, but cannot be estimated, then the Company discloses the nature of the loss contingencies, together with an estimate of the range of possible loss or a statement that such loss is not reasonably estimable. The Company expenses as incurred the costs of defending legal claims against the Company. The Company does not recognize gain contingencies until realized. See Note 8, “Commitments and Contingencies” for a detailed description. |
Recent Accounting Pronouncements | U. Recent Accounting Pronouncements: Recently Adopted Effective January 1, 2017, the Company adopted 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 the classification in the Condensed Consolidated Statement of Cash Flows. As a result of the adoption, on a prospective basis, the Company recognized $1,603 of excess tax benefits from stock-based compensation as a benefit in our income tax provision for the twelve months ended December 31, 2017. 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 twelve months ended December 31, 2016 and 2015, which resulted in a reclassification of excess tax benefits from stock-based compensation of $792 and $16, respectively, 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. This ASU is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company is currently evaluating the effect that 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 that 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 that 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 that 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 that 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).” This ASU 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. This ASU 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 effect that 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. Consequently, Topic 606 became effective at the beginning of the first quarter of fiscal year 2018. In addition, the FASB issued subsequent 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 will adopt the new standard on January 1, 2018 using the modified retrospective method. The Company is substantially complete with 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 not be material to its financial position or result of operations. The new standard will require additional disclosure about the nature, amount, timing and uncertainty of revenues 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 will update certain disclosures, as applicable, included in its financial statements to meet the requirements of the new guidance. |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Forward Contracts and Related Fair Values | The dollar equivalent of the U.S. dollar forward contracts and related fair values as of December 31, 2017 and 2016 were as follows: December 31, 2017 2016 Notional amount 8,417 3,827 Fair value of asset 45 312 |
Fair Value Measurements - (Tabl
Fair Value Measurements - (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 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) December 31, 2017 Assets: Available-for-sale debt securities: Municipal notes and bonds $ 109,589 $ — $ 109,589 $ — Foreign currency forward contracts 45 — 45 — Total assets $ 109,634 $ — $ 109,634 $ — Liabilities: Contingent consideration - acquisitions $ 2,593 $ — $ — $ 2,593 Total liabilities $ 2,593 $ — $ — $ 2,593 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 of all liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31, 2017: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Liabilities: Balance at December 31, 2016 $ 3,251 Total loss due to remeasurement included in selling, general and administrative expense 133 Additions — Payments (791 ) Transfer into (out of) Level 3 — Balance at December 31, 2017 $ 2,593 |
Marketable Securities - (Tables
Marketable Securities - (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Marketable Securities [Abstract] | |
Schedule of Marketable Securities by Category | At December 31, 2017 and 2016, marketable securities are categorized as follows: Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Fair Value December 31, 2017 Municipal notes and bonds $ 109,750 $ — $ 161 $ 109,589 Total marketable securities $ 109,750 $ — $ 161 $ 109,589 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 Consolidated Balance Sheet classification, is as follows at December 31, 2017 and 2016: December 31, 2017 December 31, 2016 Amortized Cost Fair Value Amortized Cost Fair Value Due within one year $ 104,742 $ 104,605 $ 82,499 $ 82,445 Due after one through five years 5,008 4,984 5,431 5,427 Due after five through ten years — — — — Due after ten years — — — — Total marketable securities $ 109,750 $ 109,589 $ 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 December 31, 2017 and 2016. In Unrealized Loss Position For Less Than 12 Months In Unrealized Loss Position For Greater Than 12 Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses December 31, 2017 Municipal notes and bonds $ 98,805 $ 161 $ — $ — Total marketable securities $ 98,805 $ 161 $ — $ — December 31, 2016 Municipal notes and bonds $ 64,918 $ 65 $ — $ — Total marketable securities $ 64,918 $ 65 $ — $ — |
Goodwill and Purchased Intang29
Goodwill and Purchased Intangible Assets - (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Identifiable Intangible Assets [Abstract] | |
Schedule of Purchased Intangible Assets | Purchased intangible assets as of December 31, 2017 and 2016 are as follows: Gross Carrying Amount Accumulated Amortization Net December 31, 2017 Finite-lived intangibles: Developed technology $ 65,827 $ 58,522 $ 7,305 Customer and distributor relationships 9,560 8,818 742 Trade names 4,361 3,776 585 Total identifiable intangible assets $ 79,748 $ 71,116 $ 8,632 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) | 12 Months Ended |
Dec. 31, 2017 | |
Balance Sheet Detail [Abstract] | |
Schedule of Inventories | Inventories are comprised of the following: December 31, 2017 2016 Materials $ 39,765 $ 32,993 Work-in-process 20,923 18,764 Finished goods 6,833 13,728 Total inventories $ 67,521 $ 65,485 |
Schedule of Property, Plant and Equipment, Net | Property, plant and equipment, net, is comprised of the following: December 31, 2017 2016 Land and building $ 2,584 $ 2,584 Machinery and equipment 29,870 23,493 Furniture and fixtures 3,201 2,699 Computer equipment and software 5,444 5,204 Leasehold improvements 9,472 8,116 50,571 42,096 Accumulated depreciation (33,229 ) (30,238 ) Total property, plant and equipment, net $ 17,342 $ 11,858 |
Schedule of Other Current Liabilities | Other current liabilities is comprised of the following: December 31, 2017 2016 Intangible asset acquisition - Stella Alliance $ 100 $ 1,000 Contingent consideration - acquisitions 634 855 Warrant settlement payable — 1,025 Customer deposits 5,561 996 Other 2,989 3,263 Total other current liabilities $ 9,284 $ 7,139 |
Schedule of Other Non-Current Liabilities | Other non-current liabilities is comprised of the following: December 31, 2017 2016 Unrecognized tax benefits (including interest) $ 4,660 $ 3,386 Contingent consideration - acquisitions 1,959 2,396 Deferred revenue 983 1,132 Other 2,859 2,088 Total non-current liabilities $ 10,461 $ 9,002 |
Debt Obligations - (Tables)
Debt Obligations - (Tables) | 12 Months Ended |
Dec. 31, 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 years ended December 31, 2017, 2016 and 2015. December 31, 2017 2016 2015 Contractual interest coupon $ — $ 1,186 $ 2,250 Amortization of interest discount — 1,893 3,334 Amortization of debt issuance costs — 261 432 Total interest cost recognized $ — $ 3,340 $ 6,016 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies [Abstract] | |
Schedule of Changes in Warranty Reserves | Changes in the Company’s warranty reserves are as follows: Year Ended December 31, 2017 2016 2015 Balance, beginning of the year $ 1,788 $ 1,894 $ 1,574 Accruals 3,464 2,405 2,640 Usage (2,825 ) (2,511 ) (2,320 ) Balance, end of the year $ 2,427 $ 1,788 $ 1,894 |
Share-Based Compensation and 33
Share-Based Compensation and Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Share Based Compensation And Employee Benefit Plans [Abstract] | |
Summary of Share-based Compensation Expense by Type of Award | The following table reflects share-based compensation expense by type of award: Year Ended December 31, 2017 2016 2015 Share-based compensation expense: Stock options $ 237 $ 318 $ 287 Restricted stock units, including all performance and market based awards 5,433 4,457 7,316 Total share-based compensation 5,670 4,775 7,603 Tax effect on share-based compensation 2,052 1,743 2,767 Net effect on net income $ 3,618 $ 3,032 $ 4,836 Effect on earnings per share: Basic $ (0.11 ) $ (0.10 ) $ (0.15 ) Diluted $ (0.11 ) $ (0.10 ) $ (0.15 ) |
Summary of Company's Stock Option Activity | A summary of the Company’s stock option activity with respect to the years ended December 31, 2015, 2016 and 2017 follows: Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding at December 31, 2014 615 $ 10.39 Granted — — Exercised (25 ) 8.19 Expired (100 ) 15.56 Forfeited — — Outstanding at December 31, 2015 490 9.46 Granted — — Exercised (231 ) 7.76 Expired (44 ) 14.74 Forfeited — — Outstanding at December 31, 2016 215 $ 10.19 Granted — — Exercised (142 ) 9.14 Expired — — Forfeited — — Outstanding at December 31, 2017 73 $ 12.22 5.0 $ 853 Vested or expected to vest at December 31, 2017 73 $ 12.22 5.0 $ 853 Exercisable at December 31, 2017 73 $ 12.22 5.0 $ 853 |
Schedule of Options Outstanding and Exercisable in Exercise Price Range | The options outstanding and exercisable at December 31, 2017 were in the following exercise price ranges: Options Outstanding Options Exercisable Range of Exercise Prices Shares Weighted Average Remaining Contractual Life (years) Weighted Average Exercise Price Shares Weighted Average Exercise Price 12.22 - 12.22 73 5.0 $ 12.22 73 $ 12.22 |
Summary of Nonvested Restricted Stock Unit Activity | A summary of the Company’s restricted stock unit activity with respect to the years ended December 31, 2015, 2016 and 2017 follows: Number of Shares Weighted Average Grant Date Fair Value Nonvested at December 31, 2014 805 $ 11.07 Granted 967 $ 10.99 Vested (563 ) $ 10.25 Forfeited (40 ) $ 11.05 Nonvested at December 31, 2015 1,169 $ 11.40 Granted 429 $ 13.20 Vested (413 ) $ 10.80 Forfeited (49 ) $ 11.14 Nonvested at December 31, 2016 1,136 $ 12.30 Granted 280 $ 22.70 Vested (321 ) $ 11.90 Forfeited (81 ) $ 13.78 Nonvested at December 31, 2017 1,014 $ 14.88 |
Other Expense (Income) (Tables)
Other Expense (Income) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Income Expense [Abstract] | |
Schedule of Other Expense (Income) | Other expense (income) is comprised of the following: Year Ended December 31, 2017 2016 2015 Foreign currency exchange losses (gains), net $ 457 $ 592 $ 293 Gain on sale of property, plant and equipment — (946 ) — Total other expense (income) $ 457 $ (354 ) $ 293 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense are as follows: Year Ended December 31, 2017 2016 2015 Current: Federal $ 6,020 $ 6,084 $ 1,012 State 507 983 439 Foreign 3,159 838 3,425 9,686 7,905 4,876 Deferred: Federal 17,034 4,765 3,881 State 643 184 71 Foreign (470 ) 62 28 17,207 5,011 3,980 Total income tax expense $ 26,893 $ 12,916 $ 8,856 |
Schedule of Income before Income Tax, Domestic and Foreign | The income before tax is comprised of the following: Year Ended December 31, 2017 2016 2015 Domestic operations $ 57,079 $ 47,599 $ 10,596 Foreign operations $ 2,723 $ 2,269 $ 16,216 |
Schedule of Effective Income Tax Rate Reconciliation | The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. federal income tax rate of 35% for the years ended December 31, 2017, 2016 and 2015 to income before provision for income taxes as follows: Year Ended December 31, 2017 2016 2015 Federal income tax provision at statutory rate $ 20,931 $ 17,454 $ 9,384 State taxes, net of federal effect 573 822 370 Foreign taxes net of federal effect (238 ) (1,613 ) 754 Domestic manufacturing benefit (1,569 ) (1,244 ) (553 ) Change in valuation allowance for deferred tax assets, including $1.5 million related to the Tax Act (523 ) — (653 ) Research tax credit (1,559 ) (692 ) (694 ) Deferred tax true-up 41 (1,644 ) (23 ) Remeasurement of deferred tax balances related to the Tax Act 8,020 — — Transition tax on foreign earnings related to the Tax Act (106 ) — — Other 1,323 (167 ) 271 Provision for income taxes $ 26,893 $ 12,916 $ 8,856 Effective tax rate 45 % 26 % 33 % |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities are comprised of the following: December 31, 2017 2016 Research and development credit carryforward $ 216 $ 3,784 Reserves and accruals not currently deductible 1,883 2,932 Deferred revenue 1,075 2,286 Domestic net operating loss carryforwards 892 1,049 Foreign net operating loss and credit carryforwards 2,551 4,362 Intangibles 5,388 11,002 Share-based compensation 1,500 2,249 Inventory obsolescence reserve 3,260 4,454 Depreciation — 206 Other 1,135 832 Gross deferred tax assets 17,900 33,156 Valuation allowance for deferred tax assets (2,447 ) (1,924 ) Deferred tax assets after valuation allowance 15,453 31,232 Gross deferred tax liabilities (574 ) (382 ) Net deferred tax assets $ 14,879 $ 30,850 |
Schedule of Unrecognized Tax Benefits Roll Forward | The total amount of unrecognized tax benefits are as follows: December 31, 2017 2016 2015 Unrecognized tax benefits, opening balance $ 4,827 $ 5,236 $ 5,292 Gross increases—tax positions in prior period 171 118 136 Gross decreases—tax positions in prior period (362 ) (735 ) (755 ) Gross increases—current-period tax positions 244 208 563 Lapse of statute of limitations — — — Unrecognized tax benefits, ending balance $ 4,880 $ 4,827 $ 5,236 |
Accumulated Other Comprehensi36
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 losses on available-for- sale investments Accumulated other comprehensive loss Beginning Balance, December 31, 2015 $ 2,623 $ — $ 2,623 Net current period other comprehensive loss 119 37 156 Reclassifications — — — Ending balance, December 31, 2016 2,742 37 2,779 Net current period other comprehensive loss (1,663 ) 89 (1,574 ) Reclassifications — — — Ending balance, December 31, 2017 $ 1,079 $ 126 $ 1,205 |
Segment Reporting and Geograp37
Segment Reporting and Geographic Information - (Tables) | 12 Months Ended |
Dec. 31, 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 revenues: Year Ended December 31, 2017 2016 2015 Systems and Software: Process control $ 177,177 70 % $ 146,652 63 % $ 144,858 66 % Lithography 14,234 5 % 18,949 8 % 14,519 6 % Software 25,473 10 % 29,795 13 % 27,291 12 % Parts 27,143 11 % 25,343 11 % 24,072 11 % Services 11,071 4 % 12,041 5 % 10,950 5 % Total revenues $ 255,098 100 % $ 232,780 100 % $ 221,690 100 % |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area | For geographical reporting, revenues are attributed to the geographic location in which the product is shipped. Revenues by geographic region are as follows: Year Ended December 31, 2017 2016 2015 Revenues from third parties: United States $ 36,104 $ 30,876 $ 46,778 Taiwan 63,079 68,211 55,548 South Korea 44,180 15,556 14,221 Singapore 12,775 35,517 27,310 Austria 2,601 2,049 3,557 Japan 18,943 11,875 13,216 Germany 15,580 9,759 29,378 China 35,925 33,720 17,152 Other Europe 21,167 18,720 11,403 Other Asia 4,744 6,497 3,127 Total revenues $ 255,098 $ 232,780 $ 221,690 |
Earnings Per Share - (Tables)
Earnings Per Share - (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Loss Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The computations of basic and diluted income per share for the years ended December 31, 2017, 2016, and 2015 are as follows: December 31, 2017 2016 2015 Numerator: Net income $ 32,909 $ 36,952 $ 17,956 Denominator: Basic earnings per share - weighted average shares outstanding 31,491 31,128 31,408 Effect of potential diluted securities: Employee stock options and restricted stock units - dilutive shares 670 467 692 Convertible senior notes - dilutive shares — 103 66 Warrants - dilutive shares 1 92 — Diluted earnings per share - weighted average shares outstanding 32,162 31,790 32,166 Earnings per share: Basic $ 1.05 $ 1.19 $ 0.57 Diluted $ 1.02 $ 1.16 $ 0.56 |
Share Repurchase Authorization
Share Repurchase Authorization (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Statement Of Stockholders Equity [Abstract] | |
Summary of Stock Repurchases | The following table summarizes the Company’s stock repurchases for December 31, 2017, 2016 and 2015: Year Ended December 31, 2017 2016 2015 Shares of common stock repurchased — 615 1,674 Cost of stock repurchased $ - $ 8,044 $ 20,668 Average price paid per share $ - $ 13.07 $ 12.35 |
Quarterly Consolidated Financ40
Quarterly Consolidated Financial Data (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Consolidated Financial Data Unaudited [Abstract] | |
Schedule of Consolidated Quarterly Financial Information | The following tables present certain unaudited consolidated quarterly financial information for the years ended December 31, 2017 and December 31, 2016. Quarters Ended March 31, 2017 June 30, 2017 September 2017 December 31, 2017 Total Revenues $ 60,679 $ 67,418 $ 66,920 $ 60,081 $ 255,098 Gross profit 31,868 35,456 35,145 32,126 134,595 Income before income taxes 9,607 12,752 25,663 11,780 59,802 Net income (loss) 7,151 9,193 17,369 (804 ) 32,909 Income (loss) per share: Basic $ 0.23 $ 0.29 $ 0.55 $ (0.03 ) $ 1.05 Diluted $ 0.22 $ 0.29 $ 0.54 $ (0.03 ) $ 1.02 Weighted average number of shares outstanding: Basic 31,290 31,501 31,571 31,597 31,491 Diluted 32,058 32,146 32,170 31,597 32,162 Quarters Ended March 31, 2016 June 30, 2016 September 30, 2016 December 31, 2016 Total Revenues $ 54,362 $ 62,701 $ 61,641 $ 54,076 $ 232,780 Gross profit 29,045 34,193 32,449 27,864 123,551 Income before income taxes 19,561 10,593 12,970 6,744 49,868 Net income 13,939 7,601 9,286 6,126 36,952 Income per share: Basic $ 0.45 $ 0.25 $ 0.30 $ 0.20 $ 1.19 Diluted $ 0.44 $ 0.24 $ 0.30 $ 0.19 $ 1.16 Weighted average number of shares outstanding: Basic 30,957 30,779 30,988 31,085 31,128 Diluted 31,654 31,754 31,459 32,018 31,790 |
Summary of Significant Accoun41
Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)Contract | Dec. 31, 2016USD ($)Contract | Dec. 31, 2015USD ($)Contract | |
Summary Of Significant Accounting Policies [Line Items] | |||
Property plant and equipment method | straight-line method | ||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | $ 1,079 | $ 2,742 | |
Derivative Instruments, Loss (Gain) Recognized in Income, Net | $ 105 | $ 417 | $ 221 |
Number of Foreign Currency Derivatives Held | Contract | 9,582 | 6,641 | 2,484 |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 2,052 | $ 1,743 | $ 2,767 |
Accounting Standards Update 2016-09 | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 1,603 | ||
Proceeds and Excess Tax Benefit from Share-based Compensation | $ 792 | 16 | |
Retained Earnings Reclassification | $ 72 | ||
Building [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property plant and equipment estimated useful lives | 15 years | ||
Furniture and Fixtures [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property plant and equipment estimated useful lives | 7 years | ||
Computer Equipment [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property plant and equipment estimated useful lives | 3 years | ||
Minimum [Member] | Machinery and Equipment [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property plant and equipment estimated useful lives | 4 years | ||
Maximum [Member] | Machinery and Equipment [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property plant and equipment estimated useful lives | 7 years |
Summary of Significant Accoun42
Summary of Significant Accounting Policies - Forward Contracts and Related Fair Values (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
Notional amount | $ 8,417 | $ 3,827 |
Fair value of asset | $ 45 | $ 312 |
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 | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Municipal notes and bonds | $ 109,589 | $ 87,029 |
Corporate bonds | 843 | |
Foreign currency forward contracts | 45 | 312 |
Total assets | 109,634 | 88,184 |
Contingent consideration - acquisitions | 2,593 | 3,251 |
Total liabilities | 2,593 | 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 | 109,589 | 87,029 |
Corporate bonds | 843 | |
Foreign currency forward contracts | 45 | 312 |
Total assets | 109,634 | 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 | 2,593 | 3,251 |
Total liabilities | $ 2,593 | $ 3,251 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 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 of All Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (level 3) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Fair Value Measurements [Abstract] | |
Balance at December 31, 2016 | $ 3,251 |
Total loss due to remeasurement included in selling, general and administrative expense | 133 |
Additions | 0 |
Payments | (791) |
Transfer into (out of) Level 3 | 0 |
Balance at December 31, 2017 | $ 2,593 |
Marketable Securities - Schedul
Marketable Securities - Schedule of Marketable Securities by Category (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 109,750 | $ 87,930 |
Gross Unrealized Holding Gains | 0 | 7 |
Gross Unrealized Holding Losses | 161 | 65 |
Fair Value | 109,589 | 87,872 |
Municipal Notes and Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 109,750 | 87,088 |
Gross Unrealized Holding Gains | 0 | 6 |
Gross Unrealized Holding Losses | 161 | 65 |
Fair Value | $ 109,589 | 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 - Sched47
Marketable Securities - Schedule of Amortized Cost and Estimated Fair Value of Marketable Securities Classified by Maturity Date (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Available For Sale Securities Debt Maturities Fair Value [Abstract] | ||
Amortized Cost, Due within one year | $ 104,742 | $ 82,499 |
Amortized Cost, Due after one through five years | 5,008 | 5,431 |
Amortized Cost, Due after five through ten years | 0 | 0 |
Amortized Cost, Due after ten years | 0 | 0 |
Amortized Cost, Total marketable securities | 109,750 | 87,930 |
Fair Value, Due within one year | 104,605 | 82,445 |
Fair Value, Due after one through five years | 4,984 | 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 | $ 109,589 | $ 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 | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | ||
In Unrealized Loss Position For Less Than 12 Months, Fair Value | $ 98,805 | $ 64,918 |
In Unrealized Loss Position For Less Than 12 Months, Gross Unrealized Losses | 161 | 65 |
In Unrealized Loss Position For Greater Than 12 Months, Fair Value | 0 | 0 |
In 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] | ||
In Unrealized Loss Position For Less Than 12 Months, Fair Value | 98,805 | 64,918 |
In Unrealized Loss Position For Less Than 12 Months, Gross Unrealized Losses | 161 | 65 |
In Unrealized Loss Position For Greater Than 12 Months, Fair Value | 0 | 0 |
In Unrealized Loss Position For Greater Than 12 Months, Gross Unrealized Losses | $ 0 | $ 0 |
Goodwill and Purchased Intang49
Goodwill and Purchased Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Identifiable Intangible Assets [Abstract] | |||
Goodwill, gross | $ 215,367 | $ 215,367 | |
Goodwill impairment charge | 192,872 | 192,872 | |
Goodwill | 22,495 | 22,495 | |
Intangible asset amortization expense | 1,940 | $ 2,320 | $ 2,145 |
Future amortization expense, next twelve month | 1,519 | ||
Future amortization expense, 2019 | 1,519 | ||
Future amortization expense, 2020 | 1,317 | ||
Future amortization expense, 2021 | 569 | ||
Future amortization expense, 2022 | $ 503 |
Goodwill and Purchased Intang50
Goodwill and Purchased Intangible Assets - Schedule of Purchased Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Finite Lived Intangible Assets [Line Items] | ||
Finite-lived intangibles, Gross Carrying Amount | $ 79,748 | $ 79,448 |
Finite-lived intangibles, Accumulated Amortization | 71,116 | 69,175 |
Finite-lived intangibles, Net | 8,632 | 10,273 |
Developed Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite-lived intangibles, Gross Carrying Amount | 65,827 | 65,527 |
Finite-lived intangibles, Accumulated Amortization | 58,522 | 56,986 |
Finite-lived intangibles, Net | 7,305 | 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 | 8,818 | 8,514 |
Finite-lived intangibles, Net | 742 | 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 | 3,776 | 3,675 |
Finite-lived intangibles, Net | $ 585 | $ 686 |
Balance Sheet Details - Schedul
Balance Sheet Details - Schedule of Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory Details [Abstract] | ||
Materials | $ 39,765 | $ 32,993 |
Work-in-process | 20,923 | 18,764 |
Finished goods | 6,833 | 13,728 |
Total inventories | $ 67,521 | $ 65,485 |
Balance Sheet Details - Additio
Balance Sheet Details - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Balance Sheet Detail [Abstract] | |||
Inventory valuation reserves | $ 13,035 | $ 10,545 | |
Inventory Write-down | 3,833 | 2,953 | |
Inventory Disposal | 1,343 | 1,304 | |
Depreciation | $ 3,990 | $ 3,677 | $ 3,951 |
Balance Sheet Details - Sched53
Balance Sheet Details - Schedule of Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property Plant And Equipment [Abstract] | ||
Land and building | $ 2,584 | $ 2,584 |
Machinery and equipment | 29,870 | 23,493 |
Furniture and fixtures | 3,201 | 2,699 |
Computer equipment and software | 5,444 | 5,204 |
Leasehold improvements | 9,472 | 8,116 |
Property, plant and equipment, gross | 50,571 | 42,096 |
Accumulated depreciation | (33,229) | (30,238) |
Total property, plant and equipment, net | $ 17,342 | $ 11,858 |
Balance Sheet Details - Sched54
Balance Sheet Details - Schedule of Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Other Liabilities Current [Abstract] | ||
Intangible asset acquisition - Stella Alliance | $ 100 | $ 1,000 |
Contingent consideration - acquisitions | 634 | 855 |
Warrant settlement payable | 1,025 | |
Customer deposits | 5,561 | 996 |
Other | 2,989 | 3,263 |
Total other current liabilities | $ 9,284 | $ 7,139 |
Balance Sheet Details - Sched55
Balance Sheet Details - Schedule of Other Non-Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Other Liabilities Noncurrent [Abstract] | ||
Unrecognized tax benefits (including interest) | $ 4,660 | $ 3,386 |
Contingent consideration - acquisitions | 1,959 | 2,396 |
Deferred revenue | 983 | 1,132 |
Other | 2,859 | 2,088 |
Total non-current liabilities | $ 10,461 | $ 9,002 |
Debt Obligations - Additional I
Debt Obligations - Additional Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | 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 | $ 9,500 | $ 0 | ||
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 | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Obligations [Abstract] | |||
Contractual interest coupon | $ 1,186 | $ 2,250 | |
Amortization of interest discount | 1,893 | 3,334 | |
Amortization of debt issuance costs | 261 | 432 | |
Total interest cost recognized | $ 3,340 | $ 6,016 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | Jul. 28, 2017 | Oct. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Commitments And Contingencies [Line Items] | |||||
Operating leases, rent expense | $ 3,292 | $ 3,296 | $ 3,525 | ||
Lease agreements expiration year | 2,027 | ||||
Operating leases, equipment | $ 111 | 99 | 105 | ||
Operating leases, future minimum payments due | 3,292 | ||||
Operating leases, future minimum payments, due in two years | 2,458 | ||||
Operating leases, future minimum payments, due in three years | 1,706 | ||||
Operating leases, future minimum payments, due in four years | 1,105 | ||||
Operating leases, future minimum payments, due in five years | 1,044 | ||||
Operating leases, future minimum payments, due thereafter | 2,477 | ||||
Royalty expense | 1,117 | $ 586 | $ 813 | ||
Purchase commitment, remaining minimum amount committed | $ 60,107 | ||||
Percentage of maximum borrowing capacity of value of eligible securities | 70.00% | ||||
Available line of credit | $ 87,583 | ||||
Line of Credit Facility, Interest Rate at Period End | 3.00% | ||||
Equipment [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Lease agreements expiration year | 2,022 | ||||
Camtek [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Infringement and damages value | $ 14,600 | ||||
Camtek [Member] | Settlement Agreement [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Loss contingency settlement agreement entry date | Jul. 28, 2017 | ||||
Cash payment from Camtek | $ 13,000 | ||||
Number of periods agreed not to bring suit against each other | 3 years | ||||
Minimum [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Warranty period | 12 months | ||||
Maximum [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Warranty period | 15 months |
Commitments and Contingencies59
Commitments and Contingencies - Schedule of Changes in Warranty Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments And Contingencies [Abstract] | |||
Balance, beginning of the year | $ 1,788 | $ 1,894 | $ 1,574 |
Accruals | 3,464 | 2,405 | 2,640 |
Usage | (2,825) | (2,511) | (2,320) |
Balance, end of the year | $ 2,427 | $ 1,788 | $ 1,894 |
Share-Based Compensation and 60
Share-Based Compensation and Employee Benefit Plans - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Nov. 01, 2009 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share authorized available for grants | 3,300,000 | ||||
Common stock available for future grant | 2,558,000 | 2,558,000 | |||
Share based compensation shares for issuance | 2,049,000 | 2,049,000 | 2,247,000 | ||
Total intrinsic value of stock options exercised | $ 853,000 | $ 1,312,000 | $ 108,000 | ||
Unrecognized compensation cost - option | $ 0 | 0 | |||
Fair value of stock options to non-employees | $ 268,000 | $ 270,000 | |||
Number of Shares, Granted | 280,000 | 429,000 | 967,000 | ||
Maximum potential market performance-based restricted stock units to vest | 76,000 | ||||
Price of common stock as percentage of fair market value | 95.00% | ||||
Stock based compensation expense | $ 5,670,000 | $ 4,775,000 | $ 7,603,000 | ||
Shares purchased under ESPP | 11,000 | 15,000 | 16,000 | ||
Employee Stock Purchase Plan available | 2,251,000 | 2,251,000 | 1,962,000 | ||
Percentage of contribution for annual compensation | 100.00% | ||||
Percentage of match of all employee contribution | 50.00% | ||||
Total matching contribution to plan | $ 1,047,000 | $ 1,017,000 | $ 963,000 | ||
Defined contribution plan, employer contribution under profit sharing program | 0 | 0 | 0 | ||
Employee Stock Purchase Plan [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock based compensation expense | $ 0 | 0 | 0 | ||
Maximum [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Eligible compensation deduction percentage on pay for purchase of common stock | 15.00% | ||||
Percentage of match on employee salary | 6.00% | ||||
Stock Option [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Options vesting period | 5 years | ||||
Options expiration period | 10 years | ||||
Stock based compensation expense | $ 237,000 | $ 318,000 | $ 287,000 | ||
Restricted Stock Units (RSUs) [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Total unrecognized compensation cost related to restricted stock units granted | $ 9,420,000 | $ 9,420,000 | |||
Unrecognized compensation cost related to restricted stock units, weighted average period | 2 years 2 months 12 days | ||||
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Options vesting period | 3 years | ||||
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Options vesting period | 5 years | ||||
Restricted Stock Units (RSUs) [Member] | Director [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Options vesting period | 1 year | ||||
Market Performance Based Restricted Stock Units [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Options vesting period | 3 years | ||||
Number of Shares, Granted | 38,000 | ||||
Estimated fair value per share of the market performance-based restricted stock units | $ 25.30 | $ 25.30 | |||
Maximum potential market performance-based restricted stock units to vest percentage | 200.00% |
Share-Based Compensation and 61
Share-Based Compensation and Employee Benefit Plans - Summary of Share-based Compensation Expense by Type of Award (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total share-based compensation | $ 5,670 | $ 4,775 | $ 7,603 |
Tax effect on share-based compensation | 2,052 | 1,743 | 2,767 |
Net effect on net income | $ 3,618 | $ 3,032 | $ 4,836 |
Basic | $ (0.11) | $ (0.10) | $ (0.15) |
Diluted | $ (0.11) | $ (0.10) | $ (0.15) |
Employee Stock Option [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total share-based compensation | $ 237 | $ 318 | $ 287 |
Restricted Stock Units, Including All Performance and Market Based Awards [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total share-based compensation | $ 5,433 | $ 4,457 | $ 7,316 |
Share-Based Compensation and 62
Share-Based Compensation and Employee Benefit Plans - Summary of Company's Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share Based Compensation [Abstract] | |||
Shares, Outstanding, Beginning balance | 215 | 490 | 615 |
Shares, Granted | 0 | 0 | 0 |
Shares, Exercised | (142) | (231) | (25) |
Shares, Expired | 0 | (44) | (100) |
Shares, Forfeited | 0 | 0 | 0 |
Shares, Outstanding, Ending balance | 73 | 215 | 490 |
Shares, Vested or expected to vest | 73 | ||
Shares, Exercisable | 73 | ||
Weighted Average Exercise Price, Beginning balance | $ 10.19 | $ 9.46 | $ 10.39 |
Weighted Average Exercise Price, Granted | 0 | 0 | 0 |
Weighted Average Exercise Price, Exercised | 9.14 | 7.76 | 8.19 |
Weighted Average Exercise Price, Expired | 0 | 14.74 | 15.56 |
Weighted Average Exercise Price, Forfeited | 0 | 0 | 0 |
Weighted Average Exercise Price, Ending balance | 12.22 | $ 10.19 | $ 9.46 |
Weighted Average Exercise Price, Vested or expected to vest | 12.22 | ||
Weighted Average Exercise Price, Exercisable | $ 12.22 | ||
Weighted Average Remaining Contractual Term, Outstanding | 5 years | ||
Weighted Average Remaining Contractual Term, Vested or expected to vest | 5 years | ||
Weighted Average Remaining Contractual Term, Exercisable | 5 years | ||
Aggregate Intrinsic Value, Outstanding | $ 853 | ||
Aggregate Intrinsic Value, Vested or expected to vest | 853 | ||
Aggregate Intrinsic Value, Exercisable | $ 853 |
Share-Based Compensation and 63
Share-Based Compensation and Employee Benefit Plans - Schedule of Options Outstanding and Exercisable in Exercise Price Range (Details) - $ / shares shares in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Options Outstanding, Shares | 73 | 215 | 490 | 615 |
Weighted Average Remaining Contractual Term, Outstanding | 5 years | |||
Options Outstanding, Weighted Average Exercise Price | $ 12.22 | $ 10.19 | $ 9.46 | $ 10.39 |
Options Exercisable, Weighted Average Exercise Price | 12.22 | |||
Range 12.22 - 12.22 [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Exercise Price Range, Lower Range Limit | 12.22 | |||
Exercise Price Range, Upper Range Limit | $ 12.22 | |||
Options Outstanding, Shares | 73 | |||
Weighted Average Remaining Contractual Term, Outstanding | 5 years | |||
Options Outstanding, Weighted Average Exercise Price | $ 12.22 | |||
Options Exercisable, Shares | 73 | |||
Options Exercisable, Weighted Average Exercise Price | $ 12.22 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Nonvested Restricted Stock Unit Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restricted Stock Units Activity [Abstract] | |||
Number of Shares, Nonvested beginning balance | 1,136,000 | 1,169,000 | 805,000 |
Number of Shares, Granted | 280,000 | 429,000 | 967,000 |
Number of Shares, Vested | (321,000) | (413,000) | (563,000) |
Number of Shares, Forfeited | (81,000) | (49,000) | (40,000) |
Number of Shares, Nonvested ending balance | 1,014,000 | 1,136,000 | 1,169,000 |
Weighted Average Grant Date Fair Value, Nonvested beginning balance | $ 12.30 | $ 11.40 | $ 11.07 |
Weighted Average Grant Date Fair Value, Granted | 22.70 | 13.20 | 10.99 |
Weighted Average Grant Date Fair Value, Vested | 11.90 | 10.80 | 10.25 |
Weighted Average Grant Date Fair Value, Forfeited | 13.78 | 11.14 | 11.05 |
Weighted Average Grant Date Fair Value, Nonvested ending balance | $ 14.88 | $ 12.30 | $ 11.40 |
Other Expense (Income) - Schedu
Other Expense (Income) - Schedule of Other Expense (Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Income Expense [Abstract] | |||
Foreign currency exchange losses (gains), net | $ 457 | $ 592 | $ 293 |
Gain on sale of property, plant and equipment | 0 | (946) | 0 |
Total other expense (income) | $ 457 | $ (354) | $ 293 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | |||
Federal | $ 6,020 | $ 6,084 | $ 1,012 |
State | 507 | 983 | 439 |
Foreign | 3,159 | 838 | 3,425 |
Current Income Tax Expense (Benefit) | 9,686 | 7,905 | 4,876 |
Deferred: | |||
Federal | 17,034 | 4,765 | 3,881 |
State | 643 | 184 | 71 |
Foreign | (470) | 62 | 28 |
Deferred Income Tax Expense (Benefit) | 17,207 | 5,011 | 3,980 |
Total income tax expense | $ 26,893 | $ 12,916 | $ 8,856 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income before Income Tax, Domestic and Foreign (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Abstract] | |||
Domestic operations | $ 57,079 | $ 47,599 | $ 10,596 |
Foreign operations | $ 2,723 | $ 2,269 | $ 16,216 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Examination [Line Items] | ||||
U.S. federal income tax rate, percent | 35.00% | 35.00% | 35.00% | |
Tax cuts and jobs act description | On December 22, 2017, the U.S. government enacted the Tax Cuts and Jobs Act (“Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code that affected 2017, including, but not limited to, (1) requiring a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries that is payable over eight years and (2) bonus depreciation that will allow for full expensing of qualified property. The Tax Act also establishes new tax laws that will affect 2018, including, but not limited to, (1) reduction of the U.S. federal corporate tax rate; (2) the creation of the Base Erosion and Anti-Abuse (“BEAT”), a new minimum tax; (3) a general elimination of U.S. federal income taxes on dividends from foreign subsidiaries; (4) a new provision designed to tax Global Intangible Low-Taxed Income (“GILTI”), which allows for the possibility of using FTCs and a deduction of up to 50 percent to offset the income tax liability (subject to some limitations); (5) the repeal of the domestic production activity deduction; (6) limitations on the deductibility of certain executive compensation; and (7) limitations on the use of FTCs to reduce the U.S. income tax liability. Given the complexity of the 2018 Tax Act provisions identified above, we are still evaluating the effects and have not yet determined what, if any, accounting policies will need to change, nor have we calculated the impact of the above provisions. | |||
Remeasurement of deferred | $ 8,020 | |||
Adjustment to deferred income tax expense | 8,000 | |||
Transition tax expense | 1,500 | |||
Section 78 FTC | 1,500 | |||
Tax reform FTC valuation allowance | 1,500 | |||
Deferred tax assets, valuation allowance | 2,447 | $ 1,924 | ||
Operating loss carryforward, federal | 591 | |||
Operating loss carryforward, state | 171 | |||
Operating loss carryforward, foreign | 1,134 | |||
Federal RD credit carryforward | 118 | |||
State RD Credit Carryforward | 318 | |||
Foreign RD credit carryforward | 1,542 | |||
Undistributed earnings of foreign subsidiaries | 7,663 | |||
Unrecognized tax benefit adjustment to income tax expense | 4,403 | 4,275 | ||
Unrecognized tax benefits, income tax penalties and interest expense | 246 | 76 | $ 71 | |
Unrecognized tax benefits, income tax penalties and interest accrued | $ 1,190 | $ 1,019 | ||
Federal [Member] | ||||
Income Tax Examination [Line Items] | ||||
Operating loss carryforwards expiration date | Dec. 31, 2032 | |||
Federal [Member] | Research and Development Credit [Member] | ||||
Income Tax Examination [Line Items] | ||||
Tax credit carryforward expiration date | Dec. 31, 2037 | |||
State [Member] | ||||
Income Tax Examination [Line Items] | ||||
Operating loss carryforwards expiration date | Dec. 31, 2032 | |||
State [Member] | Research and Development Credit [Member] | ||||
Income Tax Examination [Line Items] | ||||
Tax credit carryforward expiration date | Dec. 21, 2024 | |||
Foreign [Member] | ||||
Income Tax Examination [Line Items] | ||||
Operating loss carryforwards expiration date | Dec. 31, 2026 | |||
Foreign [Member] | Research and Development Credit [Member] | ||||
Income Tax Examination [Line Items] | ||||
Tax credit carryforward expiration date | Dec. 31, 2027 | |||
Forecast [Member] | ||||
Income Tax Examination [Line Items] | ||||
U.S. federal income tax rate, percent | 21.00% |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Abstract] | |||
Federal income tax provision at statutory rate | $ 20,931 | $ 17,454 | $ 9,384 |
State taxes, net of federal effect | 573 | 822 | 370 |
Foreign taxes net of federal effect | (238) | (1,613) | 754 |
Domestic manufacturing benefit | (1,569) | (1,244) | (553) |
Change in valuation allowance for deferred tax assets, including $1.5 million related to the Tax Act | (523) | 0 | (653) |
Research tax credit | (1,559) | (692) | (694) |
Deferred tax true-up | 41 | (1,644) | (23) |
Remeasurement of deferred tax balances related to the Tax Act | 8,020 | ||
Transition tax on foreign earnings related to the Tax Act | (106) | ||
Other | 1,323 | (167) | 271 |
Total income tax expense | $ 26,893 | $ 12,916 | $ 8,856 |
Effective tax rate | 45.00% | 26.00% | 33.00% |
Income Taxes - Schedule of Ef70
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Parenthetical) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Income Taxes [Abstract] | |
Change in valuation allowance for deferred tax assets related to Tax Act | $ 1.5 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Income Taxes [Abstract] | ||
Research and development credit carryforward | $ 216 | $ 3,784 |
Reserves and accruals not currently deductible | 1,883 | 2,932 |
Deferred revenue | 1,075 | 2,286 |
Domestic net operating loss carryforwards | 892 | 1,049 |
Foreign net operating loss and credit carryforwards | 2,551 | 4,362 |
Intangibles | 5,388 | 11,002 |
Share-based compensation | 1,500 | 2,249 |
Inventory obsolescence reserve | 3,260 | 4,454 |
Depreciation | 206 | |
Other | 1,135 | 832 |
Gross deferred tax assets | 17,900 | 33,156 |
Valuation allowance for deferred tax assets | (2,447) | (1,924) |
Deferred tax assets after valuation allowance | 15,453 | 31,232 |
Gross deferred tax liabilities | (574) | (382) |
Net deferred tax assets | $ 14,879 | $ 30,850 |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits Roll Forward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Abstract] | |||
Unrecognized tax benefits, opening balance | $ 4,827 | $ 5,236 | $ 5,292 |
Gross increases—tax positions in prior period | 171 | 118 | 136 |
Gross decreases—tax positions in prior period | (362) | (735) | (755) |
Gross increases—current-period tax positions | 244 | 208 | 563 |
Lapse of statute of limitations | 0 | 0 | 0 |
Unrecognized tax benefits, ending balance | $ 4,880 | $ 4,827 | $ 5,236 |
Accumulated Other Comprehensi73
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss, Net of Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | $ (293,735) | $ (270,678) |
Ending balance | (333,154) | (293,735) |
Foreign Currency Translation Adjustments [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | 2,742 | 2,623 |
Net current period other comprehensive income (loss) | (1,663) | 119 |
Ending balance | 1,079 | 2,742 |
Net Unrealized Losses on Available-For-Sale Investments [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | 37 | |
Net current period other comprehensive income (loss) | 89 | 37 |
Ending balance | 126 | 37 |
Accumulated Other Comprehensive Loss [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | 2,779 | 2,623 |
Net current period other comprehensive income (loss) | (1,574) | 156 |
Ending balance | $ 1,205 | $ 2,779 |
Segment Reporting and Geograp74
Segment Reporting and Geographic Information - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2017SegmentCustomer | Dec. 31, 2016Customer | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | Segment | 1 | ||
Customer Concentration Risk [Member] | Revenue [Member] | |||
Segment Reporting Information [Line Items] | |||
Segment reporting, disclosure of major customer | No individual end user customer accounted for more than 10% of the Company’s revenues in 2017, 2016 and 2015. The Company does not have purchase contracts with any of its customers that obligate them to continue to purchase its products. | No individual end user customer accounted for more than 10% of the Company’s revenue in 2017, 2016 and 2015. The Company does not have purchase contracts with any of its customers that obligate them to continue to purchase its products. | No individual end user customer accounted for more than 10% of the Company’s revenue in 2017, 2016 and 2015. The Company does not have purchase contracts with any of its customers that obligate them to continue to purchase its products. |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Taiwan Semiconductor Manufacturing Co Ltd [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of major customer | Customer | 0 | 1 | |
Concentration risk, percentage | 10.00% | 10.00% |
Segment Reporting and Geograp75
Segment Reporting and Geographic Information - Schedule of Revenue from External Customers by Products and Services (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 60,081 | $ 66,920 | $ 67,418 | $ 60,679 | $ 54,076 | $ 61,641 | $ 62,701 | $ 54,362 | $ 255,098 | $ 232,780 | $ 221,690 |
Sales Revenue, Net | Product Concentration Risk | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Concentration risk, percentage | 100.00% | 100.00% | 100.00% | ||||||||
Process Control Revenue | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 177,177 | $ 146,652 | $ 144,858 | ||||||||
Process Control Revenue | Sales Revenue, Net | Product Concentration Risk | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Concentration risk, percentage | 70.00% | 63.00% | 66.00% | ||||||||
Lithography Revenue | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 14,234 | $ 18,949 | $ 14,519 | ||||||||
Lithography Revenue | Sales Revenue, Net | Product Concentration Risk | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Concentration risk, percentage | 5.00% | 8.00% | 6.00% | ||||||||
Software Revenue | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 25,473 | $ 29,795 | $ 27,291 | ||||||||
Software Revenue | Sales Revenue, Net | Product Concentration Risk | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Concentration risk, percentage | 10.00% | 13.00% | 12.00% | ||||||||
Parts Revenue | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 27,143 | $ 25,343 | $ 24,072 | ||||||||
Parts Revenue | Sales Revenue, Net | Product Concentration Risk | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Concentration risk, percentage | 11.00% | 11.00% | 11.00% | ||||||||
Service Revenue | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 11,071 | $ 12,041 | $ 10,950 | ||||||||
Service Revenue | Sales Revenue, Net | Product Concentration Risk | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Concentration risk, percentage | 4.00% | 5.00% | 5.00% |
Segment Reporting and Geograp76
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 | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 60,081 | $ 66,920 | $ 67,418 | $ 60,679 | $ 54,076 | $ 61,641 | $ 62,701 | $ 54,362 | $ 255,098 | $ 232,780 | $ 221,690 |
United States [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 36,104 | 30,876 | 46,778 | ||||||||
Taiwan [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 63,079 | 68,211 | 55,548 | ||||||||
South Korea [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 44,180 | 15,556 | 14,221 | ||||||||
Singapore [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 12,775 | 35,517 | 27,310 | ||||||||
Austria [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 2,601 | 2,049 | 3,557 | ||||||||
Japan [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 18,943 | 11,875 | 13,216 | ||||||||
Germany [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 15,580 | 9,759 | 29,378 | ||||||||
China [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 35,925 | 33,720 | 17,152 | ||||||||
Other Europe [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 21,167 | 18,720 | 11,403 | ||||||||
Other Asia [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 4,744 | $ 6,497 | $ 3,127 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock Option [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of diluted earnings per share | 0 | 39 | 15 |
Restricted Stock Units (RSUs) [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of diluted earnings per share | 8 | 0 | 190 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Loss Per Share [Abstract] | |||||||||||
Net income | $ (804) | $ 17,369 | $ 9,193 | $ 7,151 | $ 6,126 | $ 9,286 | $ 7,601 | $ 13,939 | $ 32,909 | $ 36,952 | $ 17,956 |
Basic earnings per share - weighted average shares outstanding | 31,597 | 31,571 | 31,501 | 31,290 | 31,085 | 30,988 | 30,779 | 30,957 | 31,491 | 31,128 | 31,408 |
Employee stock options and restricted stock units - dilutive shares | 670 | 467 | 692 | ||||||||
Convertible senior notes - dilutive shares | 103 | 66 | |||||||||
Warrants - dilutive shares | 1 | 92 | 0 | ||||||||
Diluted earnings per share - weighted average shares outstanding | 31,597 | 32,170 | 32,146 | 32,058 | 32,018 | 31,459 | 31,754 | 31,654 | 32,162 | 31,790 | 32,166 |
Basic | $ (0.03) | $ 0.55 | $ 0.29 | $ 0.23 | $ 0.20 | $ 0.30 | $ 0.25 | $ 0.45 | $ 1.05 | $ 1.19 | $ 0.57 |
Diluted | $ (0.03) | $ 0.54 | $ 0.29 | $ 0.22 | $ 0.19 | $ 0.30 | $ 0.24 | $ 0.44 | $ 1.02 | $ 1.16 | $ 0.56 |
Share Repurchase Authorizatio79
Share Repurchase Authorization - Additional Information (Details) - shares | Dec. 31, 2017 | Dec. 31, 2016 |
Share Repurchase Program [Abstract] | ||
Number of shares authorized to be repurchased | 3,000,000 | |
Shares available for future repurchase | 711,000 |
Share Repurchase Authorizatio80
Share Repurchase Authorization - Summary of Stock Repurchases (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Share Repurchase Program [Abstract] | ||
Shares of common stock repurchased | 615,000 | 1,674,000 |
Cost of stock repurchased | $ 8,044 | $ 20,668 |
Average price paid per share | $ 13.07 | $ 12.35 |
Quarterly Consolidated Financ81
Quarterly Consolidated Financial Data (unaudited) - Schedule of Consolidated Quarterly Financial Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Consolidated Financial Data Unaudited [Abstract] | |||||||||||
Revenues | $ 60,081 | $ 66,920 | $ 67,418 | $ 60,679 | $ 54,076 | $ 61,641 | $ 62,701 | $ 54,362 | $ 255,098 | $ 232,780 | $ 221,690 |
Gross profit | 32,126 | 35,145 | 35,456 | 31,868 | 27,864 | 32,449 | 34,193 | 29,045 | 134,595 | 123,551 | 119,406 |
Income before income taxes | 11,780 | 25,663 | 12,752 | 9,607 | 6,744 | 12,970 | 10,593 | 19,561 | 59,802 | 49,868 | 26,812 |
Net income | $ (804) | $ 17,369 | $ 9,193 | $ 7,151 | $ 6,126 | $ 9,286 | $ 7,601 | $ 13,939 | $ 32,909 | $ 36,952 | $ 17,956 |
Income (loss) per share: | |||||||||||
Basic | $ (0.03) | $ 0.55 | $ 0.29 | $ 0.23 | $ 0.20 | $ 0.30 | $ 0.25 | $ 0.45 | $ 1.05 | $ 1.19 | $ 0.57 |
Diluted | $ (0.03) | $ 0.54 | $ 0.29 | $ 0.22 | $ 0.19 | $ 0.30 | $ 0.24 | $ 0.44 | $ 1.02 | $ 1.16 | $ 0.56 |
Weighted average number of shares outstanding: | |||||||||||
Basic | 31,597 | 31,571 | 31,501 | 31,290 | 31,085 | 30,988 | 30,779 | 30,957 | 31,491 | 31,128 | 31,408 |
Diluted | 31,597 | 32,170 | 32,146 | 32,058 | 32,018 | 31,459 | 31,754 | 31,654 | 32,162 | 31,790 | 32,166 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts - Schedule of Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance For Doubtful Accounts [Member] | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 680 | $ 713 | $ 1,279 |
Charged to (Recovery of) Costs and Expense | (222) | 5 | 124 |
Deductions | (2) | 38 | 690 |
Balance at End of Period | 460 | 680 | 713 |
Deferred Tax Valuation Allowance [Member] | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 1,924 | 2,205 | 2,445 |
Charged to (Recovery of) Costs and Expense | 626 | 71 | (128) |
Charged to Other Accounts (net) | (103) | (352) | (112) |
Balance at End of Period | $ 2,447 | $ 1,924 | $ 2,205 |