Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 06, 2015 | Jun. 30, 2014 | |
Document and Entity Information | |||
Entity Registrant Name | AXCELIS TECHNOLOGIES INC | ||
Entity Central Index Key | 1113232 | ||
Document Type | 10-K/A | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $219,360,386 | ||
Entity Common Stock, Shares Outstanding | 113,466,753 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue | |||
Product | $179,246 | $169,587 | $174,309 |
Services | 23,805 | 26,045 | 29,076 |
Total revenue | 203,051 | 195,632 | 203,385 |
Cost of revenue | |||
Product | 113,285 | 106,678 | 123,593 |
Services | 19,602 | 21,019 | 21,621 |
Total cost of revenue | 132,887 | 127,697 | 145,214 |
Gross profit | 70,164 | 67,935 | 58,171 |
Operating expenses | |||
Research and development | 33,533 | 34,756 | 40,401 |
Sales and marketing | 20,713 | 21,159 | 25,889 |
General and administrative | 23,958 | 25,471 | 26,554 |
Gain on sale of dry strip assets and intellectual property | -1,167 | -7,904 | |
Restructuring charges | 2,621 | 2,334 | 4,169 |
Total operating expenses | 80,825 | 82,553 | 89,109 |
Loss from operations | -10,661 | -14,618 | -30,938 |
Other income (expense) | |||
Interest income | 32 | 44 | 45 |
Interest expense | -1,069 | -457 | |
Other, net | 1,531 | -1,073 | -1,495 |
Total other income (expense) | 494 | -1,486 | -1,450 |
Loss before income taxes | -10,167 | -16,104 | -32,388 |
Income tax provision | 1,099 | 1,040 | 1,646 |
Net loss | ($11,266) | ($17,144) | ($34,034) |
Net loss per share | |||
Basic (in dollars per share) | ($0.10) | ($0.16) | ($0.32) |
Diluted (in dollars per share) | ($0.10) | ($0.16) | ($0.32) |
Shares used in computing net loss per share | |||
Basic (in shares) | 111,450 | 108,869 | 107,619 |
Diluted (in shares) | 111,450 | 108,869 | 107,619 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Loss (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Statements of Comprehensive Loss | |||
Net loss | ($11,266) | ($17,144) | ($34,034) |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustments | -4,150 | 695 | 642 |
Actuarial net (loss) gain from pension plan, net of benefit (taxes) of $140, ($15) and $178 | -313 | 24 | -399 |
Total other comprehensive (loss) income | -4,463 | 719 | 243 |
Comprehensive loss | ($15,729) | ($16,425) | ($33,791) |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Loss (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Statements of Comprehensive Loss | |||
Actuarial net (loss) gain from pension plan, benefit (taxes) | $140 | ($15) | $178 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets | ||
Cash and cash equivalents | $30,753 | $46,290 |
Restricted cash | 825 | |
Accounts receivable, net | 42,794 | 36,587 |
Inventories, net | 104,063 | 95,789 |
Prepaid expenses and other current assets | 6,700 | 6,242 |
Total current assets | 185,135 | 184,908 |
Property, plant and equipment, net | 30,464 | 32,006 |
Long-term restricted cash | 825 | |
Other assets | 12,055 | 15,810 |
Total assets | 227,654 | 233,549 |
Current liabilities | ||
Accounts payable | 21,605 | 19,451 |
Accrued compensation | 4,232 | 4,845 |
Warranty | 1,352 | 1,316 |
Income taxes | 196 | 417 |
Deferred revenue | 6,782 | 4,387 |
Current portion of long-term debt | 14,530 | 471 |
Other current liabilities | 3,401 | 4,573 |
Total current liabilities | 52,098 | 35,460 |
Long-term debt | 14,529 | |
Long-term deferred revenue | 449 | 322 |
Other long-term liabilities | 6,755 | 7,236 |
Total liabilities | 59,302 | 57,547 |
Commitments and contingencies (Note 16) | ||
Stockholders' equity | ||
Preferred stock, $0.001 par value, 30,000 shares authorized; none issued or outstanding | ||
Common stock, $0.001 par value, 300,000 shares authorized; 112,849 shares issued and 112,729 shares outstanding at December 31, 2014; 110,225 shares issued and 110,105 shares outstanding at December 31, 2013 | 113 | 110 |
Additional paid-in capital | 519,068 | 510,992 |
Treasury stock, at cost, 120 shares at December 31, 2014 and 2013 | -1,218 | -1,218 |
Accumulated deficit | -350,887 | -339,621 |
Accumulated other comprehensive income | 1,276 | 5,739 |
Total stockholders' equity | 168,352 | 176,002 |
Total liabilities and stockholders' equity | $227,654 | $233,549 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Consolidated Balance Sheets | ||
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 30,000 | 30,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 300,000 | 300,000 |
Common stock, shares issued | 112,849 | 110,225 |
Common stock, shares outstanding | 112,729 | 110,105 |
Treasury stock, shares | 120 | 120 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Total |
In Thousands, unless otherwise specified | ||||||
Balance at Dec. 31, 2011 | $107 | $499,332 | ($1,218) | ($288,443) | $4,777 | $214,555 |
Balance (in shares) at Dec. 31, 2011 | 106,809 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net loss | -34,034 | -34,034 | ||||
Foreign currency translation adjustments | 642 | 642 | ||||
Change in pension obligation | -399 | -399 | ||||
Exercise of stock options | 1 | 967 | 968 | |||
Exercise of stock options (in shares) | 1,148 | |||||
Issuance of shares under Employee Stock Purchase Plan | 390 | 390 | ||||
Issuance of shares under Employee Stock Purchase Plan (in shares) | 306 | |||||
Issuance of restricted common shares | -22 | -22 | ||||
Issuance of restricted common shares (in shares) | 30 | |||||
Stock-based compensation expense | 3,976 | 3,976 | ||||
Balance at Dec. 31, 2012 | 108 | 504,643 | -1,218 | -322,477 | 5,020 | 186,076 |
Balance (in shares) at Dec. 31, 2012 | 108,293 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net loss | -17,144 | -17,144 | ||||
Foreign currency translation adjustments | 695 | 695 | ||||
Change in pension obligation | 24 | 24 | ||||
Exercise of stock options | 2 | 1,667 | 1,669 | |||
Exercise of stock options (in shares) | 1,511 | |||||
Issuance of shares under Employee Stock Purchase Plan | 436 | 436 | ||||
Issuance of shares under Employee Stock Purchase Plan (in shares) | 206 | |||||
Issuance of restricted common shares | -26 | -26 | ||||
Issuance of restricted common shares (in shares) | 215 | |||||
Stock-based compensation expense | 4,272 | 4,272 | ||||
Balance at Dec. 31, 2013 | 110 | 510,992 | -1,218 | -339,621 | 5,739 | 176,002 |
Balance (in shares) at Dec. 31, 2013 | 110,225 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net loss | -11,266 | -11,266 | ||||
Foreign currency translation adjustments | -4,150 | -4,150 | ||||
Change in pension obligation | -313 | -313 | ||||
Exercise of stock options | 3 | 2,892 | 2,895 | |||
Exercise of stock options (in shares) | 2,418 | |||||
Issuance of shares under Employee Stock Purchase Plan | 446 | 446 | ||||
Issuance of shares under Employee Stock Purchase Plan (in shares) | 199 | |||||
Issuance of restricted common shares | -7 | -7 | ||||
Issuance of restricted common shares (in shares) | 7 | |||||
Stock-based compensation expense | 4,745 | 4,745 | ||||
Balance at Dec. 31, 2014 | $113 | $519,068 | ($1,218) | ($350,887) | $1,276 | $168,352 |
Balance (in shares) at Dec. 31, 2014 | 112,849 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities | |||
Net loss | ($11,266) | ($17,144) | ($34,034) |
Adjustments to reconcile net loss to net cash used for operating activities: | |||
Depreciation and amortization | 4,589 | 5,075 | 6,877 |
Gain on sale of dry strip assets and intellectual property | -1,167 | -7,904 | |
Deferred taxes | 1,266 | -1,465 | 826 |
Other | 186 | ||
Stock-based compensation expense | 4,812 | 4,337 | 3,976 |
Provision for inventory reserves | 1,817 | 2,562 | 14,492 |
Changes in operating assets & liabilities | |||
Accounts receivable | -7,069 | -11,528 | 10,478 |
Inventories | -12,280 | 2,209 | 5,903 |
Prepaid expenses and other current assets | -1,384 | 125 | 4,386 |
Accounts payable and other current liabilities | 772 | 7,308 | -13,490 |
Deferred revenue | 2,577 | -2,181 | -5,396 |
Income taxes | -212 | 133 | -225 |
Other assets and liabilities | 333 | -3,306 | 3,328 |
Net cash used for operating activities | -16,045 | -15,042 | -10,597 |
Cash flows from investing activities | |||
Proceeds from sale of dry strip assets and intellectual property | 1,200 | 8,716 | |
Expenditures for property, plant, and equipment | -896 | -821 | -591 |
Decrease (increase) in restricted cash | 106 | -2 | |
Net cash (used for) provided by investing activities | -896 | 485 | 8,123 |
Cash flows from financing activities | |||
Increase in restricted cash | -825 | ||
Financing fees and other expenses | -115 | -560 | |
Proceeds from exercise of stock options | 2,895 | 1,669 | 968 |
Proceeds from Employee Stock Purchase Plan | 446 | 436 | 331 |
Proceeds from issuance of Term Loan | 15,000 | ||
Principal payments on Term Loan | -470 | ||
Net cash provided by financing activities | 2,756 | 15,720 | 1,299 |
Effect of exchange rate changes on cash | -1,352 | 141 | -716 |
Net (decrease) increase in cash and cash equivalents | -15,537 | 1,304 | -1,891 |
Cash and cash equivalents at beginning of period | 46,290 | 44,986 | 46,877 |
Cash and cash equivalents at end of period | 30,753 | 46,290 | 44,986 |
Cash paid for: | |||
Income taxes | 931 | 737 | 848 |
Interest paid | $832 | $409 |
Nature_of_Business
Nature of Business | 12 Months Ended |
Dec. 31, 2014 | |
Nature of Business | |
Nature of Business | Note 1. Nature of Business |
Axcelis Technologies, Inc. ("Axcelis" or the "Company") was incorporated in Delaware in 1995, and is a worldwide producer of ion implantation and other processing equipment used in the fabrication of semiconductor chips in the United States, Europe and Asia. In addition, the Company provides extensive aftermarket service and support, including spare parts, equipment upgrades, used equipment and maintenance services to the semiconductor industry. | |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Summary of Significant Accounting Policies | |||||||||||
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies | ||||||||||
The accompanying consolidated financial statements reflect the application of certain significant accounting policies as described in this note and elsewhere in the footnotes. | |||||||||||
(a) Basis of Presentation | |||||||||||
The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned, controlled subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. | |||||||||||
Events occurring subsequent to December 31, 2014 have been evaluated for potential recognition or disclosure in the consolidated financial statements. | |||||||||||
(b) Use of Estimates | |||||||||||
The preparation of these consolidated 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 the disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. On an ongoing basis, the Company evaluates its estimates and judgments, including those related to revenue recognition, the realizable value of inventories, valuing share-based compensation instruments and valuation allowances for deferred tax assets. Actual amounts could differ from these estimates. Changes in estimates are recorded in the period in which they become known. | |||||||||||
(c) Foreign Currency | |||||||||||
The Company has determined the functional currency for substantially all operations outside the United States is the local currency. Financial statements for these operations are translated into United States dollars at year-end rates as to assets and liabilities and average exchange rates during the year as to revenue and expenses. The resulting translation adjustments are recorded in stockholders' equity as an element of accumulated other comprehensive income (loss). Foreign currency transaction gains and losses are included in other income (expense) in the Consolidated Statements of Operations. | |||||||||||
For the year ended December 31, 2014 the Company realized $1.8 million of foreign exchange gains. For the year ended December 31, 2013 and 2012, the Company realized $0.3 million and $0.9 million of foreign exchange losses, respectively. | |||||||||||
(d) Cash and Cash Equivalents | |||||||||||
Cash and cash equivalents consist of cash on hand and highly liquid investments with original maturities of ninety days or less. Cash equivalents consist primarily of money market securities and certificates of deposit. Cash equivalents are carried on the balance sheet at fair market value. | |||||||||||
(e) Inventories | |||||||||||
Inventories are carried at lower of cost, determined using the first-in, first-out ("FIFO") method, or market. The Company periodically reviews its inventories and makes provisions as necessary for estimated obsolescence or damaged goods to ensure values approximate lower of cost or market. The amount of such markdowns is equal to the difference between cost of inventory and the estimated market value based upon assumptions about future demands, selling prices, and market conditions. | |||||||||||
The Company records an allowance for estimated excess inventory. The allowance is determined using management's assumptions of materials usage, based on estimates of demand and market conditions. If actual market conditions become less favorable than those projected by management, additional inventory write-downs may be required. | |||||||||||
(f) Property, Plant and Equipment | |||||||||||
Property and equipment are stated at cost, less accumulated depreciation and amortization. | |||||||||||
Depreciation and amortization are recorded using the straight-line method over the estimated useful lives of the related assets as follows: | |||||||||||
Asset Classification | Estimated Useful Life | ||||||||||
Buildings | 40 years | ||||||||||
Machinery and equipment | 3 to 10 years | ||||||||||
Repairs and maintenance costs are expensed as incurred. Expenditures for renewals and betterments are capitalized. | |||||||||||
(g) Impairment of Long-Lived Assets | |||||||||||
The Company records impairment losses on long-lived assets when events and circumstances indicate that these assets might not be recoverable. Recoverability is measured by a comparison of the assets' carrying amount to their expected future undiscounted net cash flows. If such assets are considered to be impaired, the impairment is measured based on the amount by which the carrying value exceeds its fair value. | |||||||||||
The Company completed a test for recoverability due to indicators of impairment present during interim periods in 2014, 2013 and 2012 respectively. Results of tests for recoverability performed indicated that the carrying value of the asset group was recoverable for all periods presented. | |||||||||||
The Company did not record an impairment charge for the years ended December 31, 2014, 2013, or 2012. | |||||||||||
Future actual performance could be materially different from our current forecasts, which could impact future estimates of undiscounted cash flows and may result in the impairment of the carrying amount of the long-lived assets in the future. This could be caused by strategic decisions made in response to economic and competitive conditions, the impact of the economic environment on our customer base, or a material adverse change in the Company's relationships with significant customers. The Company performs an impairment analysis when circumstances or events warrant. | |||||||||||
(h) Concentration of Risk and Off-Balance Sheet Risk | |||||||||||
Financial instruments that potentially subject the Company to concentrations of credit risk are principally cash equivalents and accounts receivable. The Company's cash equivalents are principally maintained in an investment grade money-market fund. | |||||||||||
The Company has no significant off-balance-sheet risk such as foreign exchange contracts, option contracts or other foreign hedging arrangements. | |||||||||||
The Company's exposure to market risk for changes in interest rates relates primarily to cash equivalents. The primary objective of the Company's investment activities is to preserve principal while maximizing yields without significantly increasing risk. This is accomplished by investing in marketable high investment grade securities. The Company does not use derivative financial instruments to manage its investment portfolio and does not expect operating results or cash flows to be affected to any significant degree by any change in market interest rates. | |||||||||||
The Company performs ongoing credit evaluations of its customers' financial condition and generally requires no collateral to secure accounts receivable. For selected overseas sales, the Company requires customers to obtain letters of credit before product is shipped. The Company maintains an allowance for doubtful accounts based on its assessment of the collectability of accounts receivable. The Company reviews the allowance for doubtful accounts monthly. The Company does not have any off-balance sheet credit exposure related to its customers. | |||||||||||
The Company's customers consist of semiconductor manufacturers located throughout the world and net sales to its ten largest customers accounted for 68.1%, 69.1% and 70.6% of revenue in 2014, 2013 and 2012, respectively. | |||||||||||
For the year ended December 31, 2014, the Company had two customers representing 17.4% and 12.3% of total revenue, respectively. For the years ended December 2013 and 2012, the Company had one customer representing 15.5% and 18.2% of total revenue, respectively, for each of the periods presented. | |||||||||||
As of December 31, 2014, the Company had two customers account for 21.7% and 20.4% of consolidated accounts receivable, respectively. As of December 31, 2013, the Company had three customers account for 23.2%, 14.2% and 13.6% of consolidated accounts receivable, respectively. | |||||||||||
Some of the components and sub-assemblies included in the Company's products are obtained either from a sole source or a limited group of suppliers. Disruption to the Company's supply source, resulting either from depressed economic conditions or other factors, could affect its ability to deliver products to its customers. | |||||||||||
(i) Revenue Recognition | |||||||||||
The Company's revenue recognition policy involves significant judgment by management. As described below, the Company considers a broad array of facts and circumstances in determining when to recognize revenue, including contractual obligations to the customer, the complexity of the customer's post-delivery acceptance provisions, payment history, customer creditworthiness and the installation process. In the future, if the post-delivery acceptance provisions and installation process become more complex or result in a materially lower rate of acceptance, the Company may have to revise its revenue recognition policy, which could delay the timing of revenue recognition. | |||||||||||
The Company's system sales transactions are made up of multiple elements, including the system itself and elements that are not delivered simultaneously with the system. These undelivered elements might include a combination of installation services, extended warranty and support and spare parts, all of which are covered generally by a single sales price. | |||||||||||
The Company's system revenue arrangements with multiple elements are divided into separate units of accounting if specified criteria are met, including whether the delivered element has stand-alone value to the customer. If the criteria are met, then the consideration received is allocated among the separate units based on their relative selling price, and the revenue is recognized separately for each of the separate units. | |||||||||||
The Company determines selling price for each unit of accounting (element) using vendor specific objective evidence (VSOE) or third-party evidence (TPE), if they exist, otherwise, the Company uses best estimated selling price (BESP). The Company generally expects that it will not be able to establish TPE due to the nature of its products, and, as such, the Company typically will determine selling price using VSOE or BESP. | |||||||||||
Where required, the Company determines BESP for an individual element based on consideration of both market and Company-specific factors, including the selling price and profit margin for similar products, the cost to produce the deliverable and the anticipated margin on that deliverable and the characteristics of the varying markets in which the deliverable is sold. | |||||||||||
Systems are not sold separately and VSOE or TPE is not available for the systems element. Therefore the selling price associated with systems is based on BESP. The allocated value for installation in the arrangement includes the greater of (i) the relative selling price of the installation or (ii) the portion of the sales price that will not be received until the installation is completed (the "retention"). The selling price of installation is based upon the fair value of the service performed, including labor, which is based upon the estimated time to complete the installation at hourly rates, and material components, both of which are sold separately. The selling price of all other elements (extended warranty for support, spare parts and labor) is based upon the price charged when these elements are sold separately, or VSOE. | |||||||||||
Product revenue for products which have demonstrated market acceptance, is generally recognized upon shipment provided title and risk of loss has passed to the customer, evidence of an arrangement exists, prices are contractually fixed or determinable, collectability is reasonably assured through historical collection results and regular credit evaluations, and there are no uncertainties regarding customer acceptance. Revenue from installation services is recognized at the time acceptance has occurred, as defined in the sales documentation or, for certain customers, when both acceptance has occurred and retention payment has been received. Revenue for other elements is recognized at the time products are shipped or the related services are performed. | |||||||||||
The Company generally recognizes revenue for systems which have demonstrated market acceptance at the time of shipment because the customer's post-delivery acceptance provisions and installation process have been established to be routine, commercially inconsequential and perfunctory. The Company believes the risk of failure to complete a system installation is remote. | |||||||||||
For initial shipments of systems with new technologies or in the small number of instances where the Company is unsure of meeting the customer's specifications or obtaining customer acceptance upon shipment of the system, it will defer the recognition of systems revenue and related costs until written customer acceptance of the system is obtained. This deferral period is generally within twelve months of shipment. | |||||||||||
Revenue related to maintenance and service contracts is recognized ratably over the duration of the contracts, or based on parts usage, where appropriate. Revenue related to service hours is recognized when the services are performed. | |||||||||||
Product revenue includes revenue from system sales, sales of spare parts, the spare parts component of maintenance and service contracts and product upgrades. Services revenue includes the labor component of maintenance and service contract amounts charged for on-site service personnel. | |||||||||||
Axcelis reports revenue net of any taxes collected from customers and remitted to governmental authorities, with the collected taxes recorded as current liabilities until remitted to the relevant government authority. | |||||||||||
(j) Shipping and Handling Costs | |||||||||||
Shipping and handling costs are included in cost of revenue. | |||||||||||
(k) Stock-Based Compensation | |||||||||||
The Company generally recognizes compensation expense for all share-based payments to employees and directors, including grants of employee stock options, based on the grant-date fair value of those share-based payments using the Black-Scholes option pricing model, adjusted for expected forfeitures. Other valuation models may be utilized in the limited circumstances where awards with market-based vesting considerations, such as the price of the Company's common stock, are granted. Stock-based compensation expense is recognized ratably over the requisite service period. | |||||||||||
See Note 13 for additional information relating to stock-based compensation. | |||||||||||
(l) Income Taxes | |||||||||||
The Company records income taxes using the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases, and operating loss and tax credit carryforwards. | |||||||||||
The Company's consolidated financial statements contain certain deferred tax assets which have arisen primarily as a result of operating losses, as well as other temporary differences between financial and tax accounting. The Company establishes a valuation allowance if the likelihood of realization of the deferred tax assets is reduced based on an evaluation of objective verifiable evidence. Significant management judgment is required in determining the Company's provision for income taxes, the Company's deferred tax assets and liabilities and any valuation allowance recorded against those net deferred tax assets. The Company evaluates the weight of all available evidence to determine whether it is more likely than not that some portion or all of the net deferred income tax assets will not be realized. | |||||||||||
Income taxes include the largest amount of tax benefit for an uncertain tax position that is more likely than not to be sustained upon audit based on the technical merits of the tax position. Settlements with tax authorities, the expiration of statutes of limitations for particular tax positions, or obtaining new information on particular tax positions may cause a change to the effective tax rate. The Company recognizes accrued interest related to unrecognized tax benefits as interest expense and penalties as operating expense in the consolidated statements of operations. | |||||||||||
(m) Computation of Net Loss per Share | |||||||||||
Basic earnings per share is computed by dividing income available to common stockholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) for the period. The computation of diluted earnings per share is similar to basic earnings per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive common shares had been issued, calculated using the treasury stock method. | |||||||||||
The Company incurred net losses for the years ended December 31, 2014, 2013 and 2012, and has excluded 4,663,421, 3,547,578 and 1,563,417 of incremental shares, respectively, attributable to outstanding stock options, restricted stock and restricted stock units from the calculation of net loss per share because the effect would have been anti-dilutive. | |||||||||||
The components of net loss per share are as follows: | |||||||||||
Years Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(in thousands, except per share data) | |||||||||||
Net loss available to common stockholders | $ | (11,266 | ) | $ | (17,144 | ) | $ | (34,034 | ) | ||
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Weighted average common shares outstanding used in computing basic net loss per share | 111,450 | 108,869 | 107,619 | ||||||||
Incremental shares | — | — | — | ||||||||
| | | | | | | | | | | |
Weighted average common shares outstanding used in computing diluted net loss per share | 111,450 | 108,869 | 107,619 | ||||||||
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| | | | | | | | | | | |
Net loss per share | |||||||||||
Basic | $ | (0.10 | ) | $ | (0.16 | ) | $ | (0.32 | ) | ||
Diluted | $ | (0.10 | ) | $ | (0.16 | ) | $ | (0.32 | ) | ||
(n) Accumulated Other Comprehensive Income | |||||||||||
The following table presents the changes in accumulated other comprehensive income, net of tax, by component for the year ended December 31, 2014: | |||||||||||
Foreign | Defined benefit | Total | |||||||||
currency | pension plan | ||||||||||
(in thousands) | |||||||||||
Balance at December 31, 2013 | $ | 6,070 | $ | (331 | ) | $ | 5,739 | ||||
Other comprehensive loss | (4,150 | ) | (313 | ) | (4,463 | ) | |||||
| | | | | | | | | | | |
Balance at December 31, 2014 | $ | 1,920 | $ | (644 | ) | $ | 1,276 | ||||
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(o) Recent Accounting Guidance | |||||||||||
Accounting Standards or Updates Recently Adopted | |||||||||||
On January 1, 2014, the Company adopted Accounting Standards Update (ASU) No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exist. ASU 2013-11 amended the presentation requirements of ASC 740, Income Taxes, and requires that a liability related to an unrecognized tax benefit be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, similar tax loss, or a tax credit carryforward. To the extent the tax benefit is not available at the reporting date under the governing tax law or if the entity does not intend to use the deferred tax asset for such purpose, the unrecognized tax benefit should be presented as a liability and not combined with deferred tax assets. The ASU became effective for annual periods, and interim periods within those years, beginning after December 15, 2013, which is fiscal 2014 for the Company. The amendments are to be applied to all unrecognized tax benefits that exist as of the effective date and may be applied retrospectively to each prior reporting period presented. The adoption of this standard did not have a material impact on our consolidated financial statements. | |||||||||||
Accounting Standards or Updates Not Yet Effective | |||||||||||
In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU No. 2014-09, "Revenue from Contracts with Customers," which provides guidance for revenue recognition. The standard's core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The new guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. The Company is currently assessing the potential impact of ASU No. 2014-09 on its consolidated financial statements. | |||||||||||
In August 2014, the FASB issued ASU No. 2014-15, "Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern." ASU 2014-15 introduces an explicit requirement for management to assess if there is substantial doubt about an entity's ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. In connection with each annual and interim period, management must assess if there is substantial doubt about an entity's ability to continue as a going concern within one year after the issuance date. Disclosures are required if conditions give rise to substantial doubt. ASU 2014-15 is effective for all entities in the first annual period ending after December 15, 2016. The Company expects to comply with this standard once effective. | |||||||||||
Gain_on_Sale_of_Dry_Strip_Asse
Gain on Sale of Dry Strip Assets and Intellectual Property | 12 Months Ended |
Dec. 31, 2014 | |
Gain on Sale of Dry Strip Assets and Intellectual Property | |
Gain on Sale of Dry Strip Assets and Intellectual Property | Note 3. Gain on Sale of Dry Strip Assets and Intellectual Property |
On December 3, 2012, the Company sold its dry strip system assets and intellectual property to Lam. The purchase price was $10.7 million, of which $2.0 million was contingent upon reaching certain milestones. | |
Lam granted the Company a worldwide, non-exclusive, non-transferable, royalty free license to use the intellectual property rights sold by the Company under the Asset Purchase Agreement. The perpetual license allowed the Company to make and sell 300mm dry strip wafer processing equipment for semiconductor applications through September 2013, make and sell 200mm products through December 2015 and to support the Company's installed base of all dry strip equipment on a perpetual basis. As a result of this continuing involvement, the transaction has been recorded in continuing operations. | |
The $1.2 million gain on sale of dry strip assets and intellectual property for the year ended December 31, 2013 relates to the achievement of certain milestones met during 2013. No further milestones were met. | |
During 2012, the $7.9 million gain on sale of dry strip assets and intellectual property was comprised of the $8.7 million proceeds received for the sale, offset by approximately $0.8 million of product and material costs related to the lab system and other components purchased by Lam during 2012. | |
Restricted_Cash
Restricted Cash | 12 Months Ended |
Dec. 31, 2014 | |
Restricted Cash | |
Restricted Cash | Note 4. Restricted Cash |
The restricted cash of $0.8 million at December 31, 2014 and 2013 was established in connection with the Company's outstanding Term Loan. At December 31, 2014, this interest reserve amount was reclassified as a current asset due to the reclassification of the related debt to a current liability in relation to the Company's non-compliance with certain covenant requirements (See Note 11). The interest reserve escrow amount was released upon the payment in full of the outstanding balance of the Term Loan (See Note 20). | |
Accounts_Receivable_net
Accounts Receivable, net | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accounts Receivable, net | ||||||||
Accounts Receivable, net | Note 5. Accounts Receivable, net | |||||||
The components of accounts receivable are as follows: | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Trade receivables | $ | 43,184 | $ | 36,991 | ||||
Allowance for doubtful accounts | (390 | ) | (404 | ) | ||||
| | | | | | | | |
$ | 42,794 | $ | 36,587 | |||||
| | | | | | | | |
| | | | | | | | |
Inventories_net
Inventories, net | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventories, net | ||||||||
Inventories, net | Note 6. Inventories, net | |||||||
The components of inventories are as follows: | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Raw materials | $ | 65,723 | $ | 56,942 | ||||
Work in process | 22,358 | 27,462 | ||||||
Finished goods | 15,982 | 11,385 | ||||||
| | | | | | | | |
$ | 104,063 | $ | 95,789 | |||||
| | | | | | | | |
| | | | | | | | |
When recorded, inventory reserves are intended to reduce the carrying value of inventories to their net realizable value. The Company establishes inventory reserves when conditions exist that indicate inventory may be in excess of anticipated demand or is obsolete based upon assumptions about future demand for the Company's products or market conditions. The Company regularly evaluates the ability to realize the value of inventories based on a combination of factors including the following: forecasted sales or usage, estimated product end of life dates, estimated current and future market value and new product introductions. Purchasing and usage alternatives are also explored to mitigate inventory exposure. In 2014, the Company recorded an overall decrease of $1.4 million in the inventory reserves, which consisted of disposals due to obsolescence and excess inventory of $1.3 million and a $1.1 million reduction in reserve for sales of previously fully reserved inventory, partially offset by a provision charge to the reserve of $1.0 million. As of December 31, 2014 and 2013, inventories are stated net of inventory reserves of $23.6 million and $25.1 million respectively. | ||||||||
During 2014, the Company recorded a charge to cost of sales of $1.0 million due to production levels below normal capacity and $0.8 million to reflect the lower of cost or market value associated with evaluation units in the field. During 2013, the Company recorded charges to cost of sales of $0.6 million and $0.7 million due to production levels below normal capacity and lower of cost or market, respectively. During 2012, the Company recorded charges to cost of sales of $2.6 million and $0.5 million due to production levels below normal capacity and lower of cost or market, respectively. | ||||||||
Property_Plant_and_Equipment_n
Property, Plant and Equipment, net | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment, net | ||||||||
Property, Plant and Equipment, net | Note 7. Property, Plant and Equipment, net | |||||||
The components of property, plant and equipment are as follows: | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Land and buildings | $ | 78,757 | $ | 79,076 | ||||
Machinery and equipment | 8,370 | 7,774 | ||||||
Construction in process | 370 | 356 | ||||||
| | | | | | | | |
Total cost | 87,497 | 87,206 | ||||||
Accumulated depreciation | (57,033 | ) | (55,200 | ) | ||||
| | | | | | | | |
Property, plant and equipment, net | $ | 30,464 | $ | 32,006 | ||||
| | | | | | | | |
| | | | | | | | |
Depreciation expense was $2.4 million, $3.2 million and $3.3 million, for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||
Assets_Manufactured_for_Intern
Assets Manufactured for Internal Use | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Assets Manufactured for Internal Use | ||||||||
Assets Manufactured for Internal Use | Note 8. Assets Manufactured for Internal Use | |||||||
The components of assets manufactured for internal use, included in amounts reported as other assets, are as follows: | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Internal use assets | $ | 24,309 | $ | 23,409 | ||||
Construction in process | 3,465 | 5,263 | ||||||
| | | | | | | | |
Total cost | 27,774 | 28,672 | ||||||
Accumulated depreciation | (17,927 | ) | (15,774 | ) | ||||
| | | | | | | | |
Assets manufactured for internal use, net | $ | 9,847 | $ | 12,898 | ||||
| | | | | | | | |
| | | | | | | | |
These products are used in-house for research and development, training, and customer demonstration purposes. | ||||||||
Effective October 1, 2013, the Company changed its estimate of the useful life of its assets manufactured for internal use (which are amortized on a straight-line basis) from five years to ten years. This change in estimate resulted from the evaluation of the life cycle of our assets manufactured for internal use and the conclusion, that based on recent experience these products consistently have a longer life than previously estimated. The change in useful life has been accounted for as a change in accounting estimate, and was effective on new assets manufactured for internal use, on a prospective basis beginning October 1, 2013. | ||||||||
As a result of the change in the estimated life of assets manufactured for internal use, profit before tax and net profit were approximately $0.3 million and $0.1 million higher for the full year ended December 31, 2014 and 2013, respectively. The change in estimated useful life of assets did not have an impact on the earnings per share disclosed in the Consolidated Statements of Operations. | ||||||||
Depreciation expense was $2.2 million, $1.8 million and $3.4 million, for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||
Restructuring_Charges
Restructuring Charges | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Restructuring Charges. | |||||
Restructuring Charges | Note 9. Restructuring Charges | ||||
In 2014, the Company had severance and other costs related to a reduction in force of $2.6 million, which included stock option modification costs of $0.1 million recorded within additional paid-in capital in the consolidated balance sheets. The liability at December 31, 2014 of $0.5 million is expected to be paid primarily in the first quarter of 2015. | |||||
The Company's restructuring liability for the years ended December 31, 2014, 2013 and 2012 are as follows: | |||||
Severance | |||||
(In thousands) | |||||
Balance at December 31, 2011 | $ | 171 | |||
Severance and related costs | 4,169 | ||||
Cash payments | (3,551 | ) | |||
Non-cash items | (130 | ) | |||
| | | | | |
Balance at December 31, 2012 | $ | 659 | |||
Severance and related costs | 2,334 | ||||
Cash payments | (2,950 | ) | |||
| | | | | |
Balance at December 31, 2013 | $ | 43 | |||
Severance and related costs | 2,565 | ||||
Cash payments | (2,127 | ) | |||
| | | | | |
Balance at December 31, 2014 | $ | 481 | |||
| | | | | |
| | | | | |
Product_Warranty
Product Warranty | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Product Warranty | |||||||||||
Product Warranty | Note 10. Product Warranty | ||||||||||
The Company generally offers a one year warranty for all of its systems, the terms and conditions of which vary depending upon the product sold. For all systems sold, the Company accrues a liability for the estimated cost of standard warranty at the time of system shipment and defers the portion of systems revenue attributable to the fair value of non-standard warranty. Costs for non-standard warranty are expensed as incurred. Factors that affect the Company's warranty liability include the number of installed units, historical and anticipated product failure rates, material usage and service labor costs. The Company periodically assesses the adequacy of its recorded liability and adjusts the amount as necessary. | |||||||||||
The changes in the Company's product warranty liability are as follows: | |||||||||||
Years Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(in thousands) | |||||||||||
Balance at January 1 (beginning of year) | $ | 1,428 | $ | 1,801 | $ | 3,697 | |||||
Warranties issued during the period | 1,743 | 2,240 | 3,042 | ||||||||
Settlements made during the period | (2,096 | ) | (1,515 | ) | (3,010 | ) | |||||
Changes in estimate of liability for pre-existing warranties during the period | 451 | (1,098 | ) | (1,928 | ) | ||||||
| | | | | | | | | | | |
Balance at December 31 (end of year) | $ | 1,526 | $ | 1,428 | $ | 1,801 | |||||
| | | | | | | | | | | |
Amount classified as current | $ | 1,352 | $ | 1,316 | $ | 1,700 | |||||
Amount classified within other long-term liabilities | 174 | 112 | 101 | ||||||||
| | | | | | | | | | | |
Total warranty liability | $ | 1,526 | $ | 1,428 | $ | 1,801 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Financing_Arrangements
Financing Arrangements | 12 Months Ended |
Dec. 31, 2014 | |
Financing Arrangements | |
Financing Arrangements | Note 11. Financing Arrangements |
Term Loan | |
During the third quarter of 2013, the Company entered into a Business Loan Agreement with Northern Bank & Trust Company ("the Bank"), which provides for a three year term loan of $15.0 million secured by the Company's real estate in Beverly, Massachusetts. $0.8 million of the loan proceeds are held in a restricted interest reserve escrow account as shown under cash flows from financing activities in our Consolidated Statements of Cash Flows. See Note 4 above for further discussion. The Bank will also maintain a reserve on the Company's loan account with the Bank for quarterly real estate taxes on the mortgaged property. The loan bears interest at 5.5% per annum, with payments of principal beginning August 5, 2014. Interest is payable monthly. All outstanding principal and interest is due and payable on July 5, 2016. The Company is also subject to a 2% fee on amounts prepaid between July 5, 2014 and July 5, 2015 and a 1% fee on amounts prepaid between July 5, 2015 and July 5, 2016. | |
The Company's Term Loan contains certain customary covenants which limit the Company's ability, with certain exceptions, to dispose of assets, engage in a new line of business, make material changes to our executive management team, effect a change of control, acquire another business, incur additional indebtedness, incur liens, pay dividends and make other distributions, and make investments. Furthermore, under the Term Loan, the Company is required to comply with certain financial covenants, including a Debt Service Ratio, Net Worth, and Liquidity covenants. The Business Loan Agreement was amended in May 2014 to defer to September 30, 2014 the effectiveness of a covenant establishing a minimum ratio of net income to debt service expense, waiving the Company's non-compliance with that covenant at March 31, 2014. In August 2014, the Business Loan Agreement was further amended to defer to December 31, 2014 the covenant establishing a minimum ratio of net income to debt service expense. As of December 31, 2014, the Company was not in compliance with certain covenant requirements of the Term Loan. The Company was in the process of obtaining a waiver regarding its non-compliance with the covenant requirements, however, the waiver was no longer required as the Term Loan was satisfied in full prior to the filing of this Form 10-K with proceeds received by the Company relating to the sale leaseback transaction as described in Note 20. As such the outstanding balance of the Term Loan of $14.5 million and interest reserve escrow (restricted cash) of $0.8 million, were classified within current liabilities and assets, respectively, as of December 31, 2014. | |
Credit Facility | |
The Company has a revolving credit facility with Silicon Valley Bank ("SVB") dated October 31, 2013. Under this revolving credit facility, the Company has the ability to borrow up to $10.0 million on a revolving basis during its two year term. The Company's ability to borrow under this line of credit is limited to 80% of the then current amount of qualified accounts receivable. On August 1, 2014, the Company and SVB entered into a Waiver and Amendment Agreement in which SVB waived the Company's non-compliance with the minimum adjusted net income covenant in the Loan Agreement at June 30, 2014 and amended the covenant for future periods. On February 2, 2015, the Company and SVB entered into a Second Amendment to the Loan and Security Agreement, whereby the minimum adjusted net income covenant for the period ending December 31, 2014 was removed. As of December 31, 2014, the Company was in compliance with all covenants related to the credit facility, as amended. | |
At December 31, 2014, the Company's available borrowing capacity under the credit facility was $8.9 million. As of December 31, 2014, the Company had not drawn down on the line of credit, although a portion of the availability is being used to support an outstanding letter of credit in the amount of $1.1 million in lieu of cash collateralization. In February 2015, our available borrowing capacity was reduced by $5.9 million, the amount of a letter of credit issued to our landlord for our Beverly, Massachusetts headquarter building (see Note 20). | |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Employee Benefit Plans | ||||||||
Employee Benefit Plans | Note 12. Employee Benefit Plans | |||||||
(a) Defined Contribution Plan | ||||||||
The Company maintains the Axcelis Long-Term Investment Plan, a defined contribution plan. All regular employees are eligible to participate and may contribute up to 35% of their compensation on a before-tax basis subject to Internal Revenue Service ("IRS") limitations. Highly compensated employees may contribute up to 16% of their compensation on a before-tax basis subject to IRS limitations. The Company did not match contributions for any of the periods presented. | ||||||||
(b) Other Compensation Plans | ||||||||
The Company operates in foreign jurisdictions that require lump sum benefits, payable based on statutory regulations, for voluntary or involuntary termination. Where required, an annual actuarial valuation of the benefit plans is obtained. | ||||||||
The Company has recorded an unfunded liability of $4.2 million and $4.1 million at December 31, 2014 and 2013, respectively, for costs associated with these compensation plans in foreign jurisdictions. The following table presents the classification of these liabilities in the Consolidated Balance Sheets: | ||||||||
Year Ended | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Current: | ||||||||
Accrued compensation | $ | 837 | $ | 638 | ||||
| | | | | | | | |
Total current liabilities | $ | 837 | $ | 638 | ||||
Long-term: | ||||||||
Other long-term liabilities | 3,323 | 3,416 | ||||||
| | | | | | | | |
Total liabilities | $ | 4,160 | $ | 4,054 | ||||
| | | | | | | | |
| | | | | | | | |
The expense recorded in connection with these plans was $0.7 million, $0.6 million and $0.6 million during the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||
Stock_Award_Plans_and_Stock_Ba
Stock Award Plans and Stock Based Compensation | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Stock Award Plans and Stock Based Compensation | ||||||||||||||
Stock Award Plans and Stock Based Compensation | Note 13. Stock Award Plans and Stock Based Compensation | |||||||||||||
(a) Equity Incentive Plans | ||||||||||||||
The Company maintains the Axcelis Technologies, Inc. 2012 Equity Incentive Plan (the "2012 Equity Plan"), which became effective on May 2, 2012. Our 2000 Stock Plan (the "2000 Stock Plan") expired on May 1, 2012 and no new grants may be made under that plan after that date. However, awards granted under the 2000 Stock Plan prior to the expiration remain outstanding and subject to the terms of the 2000 Stock Plan. | ||||||||||||||
The 2012 Equity Plan reserves 7.1 million shares of common stock, $0.001 par value for grant and permits the issuance of options, stock appreciation rights, restricted stock, restricted stock units, stock equivalents and awards of shares of common stock that are not subject to restrictions or forfeiture to selected employees, directors and consultants of the Company. Shares that are not issued under an award (because such award expires, is terminated unexercised or is forfeited) that were outstanding under the 2000 Stock Plan as of the May 2, 2012 increase the reserve of shares available for grant under the 2012 Equity Plan. | ||||||||||||||
The term of stock options granted under these plans is specified in the award agreements. Unless a lesser term is otherwise specified by the Company's Compensation Committee of the Board of Directors, awards under the 2012 Equity Plan will expire seven years from the date of grant. In general, all awards issued under the 2000 Stock Plan expire ten years from the date of grant. Under the terms of these stock plans, the exercise price of a stock option may not be less than the fair market value of a share of the Company's common stock on the date of grant. Under the 2012 Equity Plan, fair market value is defined as the last reported sale price of a share of the common stock on a national securities exchange as of any applicable date, as long as the Company's shares are traded on such exchange. | ||||||||||||||
Stock options granted to employees generally vest over a period of four years, while stock options granted to non-employee members of the Company's Board of Directors generally vest over a period of 6 months and, once vested, are not affected by the director's termination of service to the Company. In limited circumstances, the Company may grant stock option awards with market-based vesting conditions, such as the Company's common stock price. Termination of service by an employee will cause options to cease vesting as of the date of termination, and in most cases, employees will have 90 days after termination to exercise options that were vested as of the termination of employment. In general, retiring employees will have one year after termination of employment to exercise vested options. The Company settles stock option exercises with newly issued common shares. | ||||||||||||||
Restricted stock units granted to employees during 2014, 2013 and 2012 had both time-based vesting provisions and market-based vesting provisions. Generally, unvested restricted stock unit awards expire upon termination of service to the Company. The Company settles restricted stock units upon vesting with newly issued common shares. No restricted stock was granted under either stock plan during the three year period ended December 31, 2014. | ||||||||||||||
As of December 31, 2014, there were 2.8 million shares available for grant under the 2012 Equity Plan. No shares are available for grant under the 2000 Stock Plan. | ||||||||||||||
As of December 31, 2014, there were 21.7 million options outstanding under the 2012 Equity Plan and the 2000 Stock Plan, collectively, and less than 0.1 million unvested restricted stock units outstanding under the 2000 Stock Plan. | ||||||||||||||
(b) Employee Stock Purchase Plan | ||||||||||||||
The Employee Stock Purchase Plan (the "Purchase Plan") provides effectively all of the Company's employees the opportunity to purchase common stock of the Company at less than market prices. Purchases are made through payroll deductions of up to 10% of the employee's salary as elected by the participant, subject to certain caps set forth in the Purchase Plan. Employees may purchase its common stock at 85% of the market value of the Company's common stock on the day the stock is purchased. | ||||||||||||||
The Purchase Plan is considered compensatory and as such, compensation expense has been recognized based on the benefit of the discounted stock price, amortized to compensation expense over each offering period of six months. Compensation expense relating to the Purchase Plan was $0.1 million for each of the years ended December 31, 2014, 2013 and 2012. | ||||||||||||||
As of December 31, 2014, there were a total of 1.6 million shares reserved for issuance and available for purchase under the Purchase Plan. There were 0.2 million, 0.2 million and 0.3 million shares purchased under the Purchase Plan for the years ended December 31, 2014, 2013 and 2012 respectively. | ||||||||||||||
(c) Valuation of Stock Options | ||||||||||||||
For the purpose of valuing stock options with service conditions, the Company uses the Black-Scholes option pricing model to calculate the grant-date fair value of an award. | ||||||||||||||
The fair values of options granted were calculated using the following estimated weighted-average assumptions: | ||||||||||||||
Years ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Weighted-average expected volatility | 60.59-98.40 | % | 98.1 | % | 97.8%-113.55 | % | ||||||||
Weighted-average expected term | 3.75-4.71 years | 4.7 years | 3.8-6.1 years | |||||||||||
Risk-free interest rate | 1.19%-1.67 | % | 0.7%-1.4 | % | 0.45%-1.37 | % | ||||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | ||||||||
Expected volatility—The Company is responsible for estimating volatility and has considered a number of factors when estimating volatility. The Company's method of estimating expected volatility for all stock options granted relies on a combination of historical and implied volatility. The Company believes that this blended volatility results in a more accurate estimate of the grant-date fair value of employee stock options because it more appropriately reflects the market's current expectations of future volatility. | ||||||||||||||
Expected term—The Company calculated the weighted average expected term for stock options granted prior to July 1, 2012, using a forward looking lattice model of the Company's stock price incorporating a suboptimal exercise factor and a projected post-vest forfeiture rate. For stock options granted after July 1, 2012 to employees and to non-employee members of the Company's Board of Directors, the Company used the simplified method for estimating the expected life of "plain vanilla" options because it did not have sufficient exercise history. The Company expects that it will use a lattice model once sufficient exercise history has been established. The change in the contractual life from 10 years to 7 years reflects the fact that options granted after May 1, 2012 were granted under the 2012 Equity Incentive Plan, which limits option terms to seven years. | ||||||||||||||
Risk-free interest rate—The yield on zero-coupon U.S. Treasury securities for a period that is commensurate with the expected term assumption is used as the risk-free interest rate. | ||||||||||||||
Expected dividend yield—Expected dividend yield was not considered in the option pricing formula since the Company does not pay dividends and has no current plans to do so in the future. | ||||||||||||||
In limited circumstances, the Company also issues stock option grants with vesting based on market conditions, such as the Company's common stock price, or a combination of time or market conditions. The fair values and derived service periods for all grants that have vesting based on market conditions are estimated using the Monte Carlo valuation method. For each stock option grant with vesting based on a combination of time or market conditions, where vesting will occur if either condition is met, the related compensation costs are recognized over the shorter of the explicit service period or the derived service period. | ||||||||||||||
(d) Summary of Share-Based Compensation Expense | ||||||||||||||
The Company estimates the fair value of stock options with time-based conditions using the Black-Scholes valuation model and estimates the fair value of stock options with market-based vesting conditions, such as the price of the Company's common stock, using the Monte Carlo valuation model. The fair value of the Company's restricted stock and restricted stock units is calculated based upon the fair market value of the Company's stock at the date of grant. | ||||||||||||||
The Company uses the straight-line attribution method to recognize expense for stock-based awards such that the expense associated with awards is evenly recognized throughout the period. | ||||||||||||||
The amount of stock-based compensation recognized is based on the value of the portion of the awards that are ultimately expected to vest. The Company estimates forfeitures at the time of grant and revises them, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The term "forfeitures" is distinct from "cancellations" or "expirations" and represents only the unvested portion of the surrendered stock-based award. Based on a historical analysis, a forfeiture rate of 5% per year, including executive officer awards, was applied to stock-based awards for the years ended December 31, 2014, 2013 and 2012. | ||||||||||||||
The Company recognized stock-based compensation expense of $4.8 million, $4.3 million and $3.9 million for the years ended December 31, 2014, 2013 and 2012, respectively. The Company presents the expenses related to stock-based compensation in the same expense line items as cash compensation paid to each of its employees. For the years ended 2014, 2013 and 2012, the Company primarily used stock options in its annual equity compensation program. | ||||||||||||||
The benefits of tax deductions in excess of recognized compensation cost is reported as a financing cash flow, rather than as an operating cash flow. Because the Company does not recognize the benefit of tax deductions in excess of recognized compensation cost due to its cumulative net operating loss position, this had no impact on the Company's consolidated statement of cash flows as of and for the years ended December 31, 2014, 2013 or 2012. | ||||||||||||||
(e) Stock Option Awards | ||||||||||||||
The following table summarizes the stock option activity for the year ended December 31, 2014: | ||||||||||||||
Options | Weighted | Weighted | Aggregate | |||||||||||
Average | Average | Intrinsic | ||||||||||||
Exercise | Remaining | Value | ||||||||||||
Price | Contractual | |||||||||||||
Term | ||||||||||||||
(in thousands) | (years) | (in thousands) | ||||||||||||
Outstanding at December 31, 2013 | 22,299 | $ | 1.89 | |||||||||||
Granted | 3,976 | 1.81 | ||||||||||||
Exercised | (2,418 | ) | 1.2 | |||||||||||
Canceled | (991 | ) | 1.64 | |||||||||||
Expired | (1,162 | ) | 8.28 | |||||||||||
| | | | | | | | | | | | | | |
Outstanding at December 31, 2014 | 21,704 | $ | 1.62 | 5.41 | $ | 22,238 | ||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Exercisable at December 31, 2014 | 12,461 | $ | 1.55 | 5.09 | $ | 14,347 | ||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Options Vested or Expected to Vest at December 31, 2014(1) | 21,102 | $ | 1.61 | 5.47 | $ | 13,448 | ||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
-1 | In addition to the vested options, the Company expects a portion of the unvested options to vest at some point in the future. Options expected to vest is calculated by applying an estimated forfeiture rate to the unvested options. | |||||||||||||
The total intrinsic value, which is defined as the difference between the market price at exercise and the price paid by the employee to exercise the options, for options exercised during the years ended December 31, 2014, 2013 and 2012 was $2.4 million, $1.4 million and $0.9 million, respectively. | ||||||||||||||
The total fair value of stock options vested during the years ended December 31, 2014, 2013 and 2012 were $4.7 million, $3.8 million and $4.1 million respectively. As of December 31, 2014, there was $8.5 million of total forfeiture-adjusted unrecognized compensation cost related to non-vested stock options granted under the 2012 Equity Incentive Plan and the 2000 Stock Plan. That cost is expected to be recognized over a weighted-average period of 2.62 years. | ||||||||||||||
(f) Restricted Stock and Restricted Stock Units | ||||||||||||||
Restricted stock units ("RSUs") represent the Company's unfunded and unsecured promise to issue shares of the common stock at a future date, subject to the terms of the RSU Award Agreement and either the 2012 Equity Incentive Plan or the 2000 Stock Plan. The purpose of these awards is to assist in attracting and retaining highly competent employees and directors and to act as an incentive in motivating selected employees and directors to achieve long-term corporate objectives. RSU awards granted in 2014, 2013 and 2012 included both time vested awards and market vested awards for employees and executive officers. No restricted stock awards were granted, or vested, during the period. The fair value of a restricted stock unit and restricted stock award is charged to expense ratably over the applicable service period. | ||||||||||||||
Changes in the Company's non-vested restricted stock units for the year ended December 31, 2014 is as follows: | ||||||||||||||
Shares/units | Weighted-Average | |||||||||||||
Grant Date Fair | ||||||||||||||
Value per Share | ||||||||||||||
(in thousands) | ||||||||||||||
Outstanding at December 31, 2013 | 23 | $ | 1.39 | |||||||||||
Granted | 90 | 2.17 | ||||||||||||
Vested | (10 | ) | 1.45 | |||||||||||
Forfeited | — | — | ||||||||||||
| | | | | | | | |||||||
Outstanding at December 31, 2014 | 103 | $ | 2.07 | |||||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
Some restricted stock units provide for a net share settlement program to offset the personal income tax obligations of the employee's restricted stock unit vesting. Vesting activity above reflects shares vested before net share settlement. The total forfeiture adjusted unrecognized compensation cost related to market-based restricted stock units that had not vested as of December 31, 2014 was not significant. | ||||||||||||||
Stockholders_Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2014 | |
Stockholders' Equity | |
Stockholders' Equity | Note 14. Stockholders' Equity |
Preferred Stock | |
The Company may issue up to 30 million shares of preferred stock in one or more series. The Board of Directors is authorized to fix the rights and terms for any series of preferred stock without additional shareholder approval. As of December 31, 2014 and 2013, there were no outstanding shares of preferred stock. | |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Fair Value Measurements | ||||||||||||||
Fair Value Measurements | Note 15. Fair Value Measurements | |||||||||||||
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. | ||||||||||||||
(a) Fair Value Hierarchy | ||||||||||||||
The accounting guidance for fair value measurement requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is as follows: | ||||||||||||||
Level 1—applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. | ||||||||||||||
Level 2—applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. | ||||||||||||||
Level 3—applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. | ||||||||||||||
(b) Assets Measured at Fair Value | ||||||||||||||
The Company's money market funds are included in cash and cash equivalents in the Consolidated Balance Sheets, and are considered a level 1 investment as they are valued at quoted market prices in active markets. The Company's Term Loan is carried at amortized cost which approximates fair value based on current market pricing of similar debt instruments and is categorized as level 2 within the fair value hierarchy. The following table sets forth Company's assets which are measured at fair value by level within the fair value hierarchy. | ||||||||||||||
December 31, 2014 | ||||||||||||||
Fair Value Measurements | ||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||
(in thousands) | ||||||||||||||
Assets | ||||||||||||||
Cash equivalents: | ||||||||||||||
Money market funds | $ | 7,004 | $ | — | $ | — | $ | 7,004 | ||||||
Liabilities | ||||||||||||||
Term Loan | $ | — | $ | 14,530 | $ | — | $ | 14,530 | ||||||
December 31, 2013 | ||||||||||||||
Fair Value Measurements | ||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||
(in thousands) | ||||||||||||||
Assets | ||||||||||||||
Cash equivalents: | ||||||||||||||
Money market funds | $ | 10,504 | $ | — | $ | — | $ | 10,504 | ||||||
Liabilities | ||||||||||||||
Term Loan | $ | — | $ | 15,000 | $ | — | $ | 15,000 | ||||||
(c) Other Financial Instruments | ||||||||||||||
The carrying amounts reflected in the consolidated balance sheets for cash and cash equivalents (which are comprised primarily of deposit accounts), accounts receivable, prepaid expenses and other current and non-current assets, restricted cash, accounts payable and accrued expenses approximate fair value due to their short-term maturities. | ||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies | |||||
Commitments and Contingencies | Note 16. Commitments and Contingencies | ||||
(a) Lease Commitments | |||||
The Company leases manufacturing and office facilities and certain equipment under operating leases that expire through 2020. Rental expense was $3.7 million, $4.0 million and $4.3 million under operating leases for the years ended December 31, 2014, 2013 and 2012, respectively. Future minimum lease commitments on non-cancelable operating leases for the year ended December 31, 2014 are as follows: | |||||
Operating | |||||
Leases | |||||
(in thousands) | |||||
2015 | $ | 2,543 | |||
2016 | 1,280 | ||||
2017 | 607 | ||||
2018 | 259 | ||||
2019 | 222 | ||||
Thereafter | 222 | ||||
| | | | | |
$ | 5,133 | ||||
| | | | | |
| | | | | |
(b) Purchase Commitments | |||||
The Company has non-cancelable contracts and purchase orders for inventory of $34.3 million at December 31, 2014. | |||||
(c) Litigation | |||||
The Company is not presently a party to any litigation that it believes might have a material adverse effect on its business operations. The Company is, from time to time, a party to litigation that arises in the normal course of its business operations. | |||||
(d) Indemnifications | |||||
The Company's system sales agreements typically include provisions under which the Company agrees to take certain actions, provide certain remedies and defend its customers against third-party claims of intellectual property infringement under specified conditions and to indemnify customers against any damage and costs awarded in connection with such claims. The Company has not incurred any material costs as a result of such indemnifications and has not accrued any liabilities related to such obligations in the accompanying consolidated financial statements. | |||||
Business_Segment_and_Geographi
Business Segment and Geographic Region Information | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Business Segment and Geographic Region Information | |||||||||||
Business Segment and Geographic Region Information | Note 17. Business Segment and Geographic Region Information | ||||||||||
The Company operates in one business segment, which is the manufacture of capital equipment for the semiconductor manufacturing industry. The principal market for semiconductor manufacturing equipment is semiconductor manufacturers. Substantially all sales are made directly by the Company to its customers located in the United States, Europe and Asia Pacific. | |||||||||||
The Company's ion implantation systems product line includes high current, medium current and high energy implanters. Other products include legacy dry strip equipment, curing systems, and thermal processing systems. In addition to new equipment, the Company provides post-sales equipment service and support, including spare parts, equipment upgrades, used equipment, maintenance services and customer training. | |||||||||||
Revenue by product lines is as follows: | |||||||||||
Years ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(in thousands) | |||||||||||
Ion implantation systems, services, and royalties | $ | 183,148 | $ | 164,030 | $ | 156,090 | |||||
Other systems and services | 19,903 | 31,602 | 47,295 | ||||||||
| | | | | | | | | | | |
$ | 203,051 | $ | 195,632 | $ | 203,385 | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Revenue and long-lived assets by geographic region, based on the physical location of the operation recording the sale or the asset, are as follows: | |||||||||||
Revenue | Long-Lived | ||||||||||
Assets | |||||||||||
(in thousands) | |||||||||||
2014 | |||||||||||
United States | $ | 126,255 | $ | 40,001 | |||||||
Europe | 29,140 | — | |||||||||
Asia Pacific | 47,656 | 299 | |||||||||
| | | | | | | | ||||
$ | 203,051 | $ | 40,300 | ||||||||
| | | | | | | | ||||
| | | | | | | | ||||
2013 | |||||||||||
United States | $ | 116,969 | $ | 44,424 | |||||||
Europe | 27,933 | — | |||||||||
Asia Pacific | 50,730 | 480 | |||||||||
| | | | | | | | ||||
$ | 195,632 | $ | 44,904 | ||||||||
| | | | | | | | ||||
| | | | | | | | ||||
2012 | |||||||||||
United States | $ | 132,159 | $ | 43,440 | |||||||
Europe | 27,636 | — | |||||||||
Asia Pacific | 43,590 | 752 | |||||||||
| | | | | | | | ||||
$ | 203,385 | $ | 44,192 | ||||||||
| | | | | | | | ||||
| | | | | | | | ||||
Long-lived assets consist of property, plant and equipment, net and assets manufactured for internal use. Operations in Europe and Asia Pacific consist of sales and service organizations. | |||||||||||
International revenue, which includes export sales from U.S. manufacturing facilities to foreign customers and sales by foreign subsidiaries and branches, was $162.4 million (80.0% of total revenue), $149.4 million (76.4% of total revenue) and $142.8 million (70.2% of total revenue) in 2014, 2013 and 2012, respectively. | |||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Income Taxes | ||||||||||||||
Income Taxes | Note 18. Income Taxes | |||||||||||||
Loss before income taxes is as follows: | ||||||||||||||
Years ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
(in thousands) | ||||||||||||||
United States | $ | (11,987 | ) | $ | (18,998 | ) | $ | (37,682 | ) | |||||
Foreign | 1,820 | 2,894 | 5,294 | |||||||||||
| | | | | | | | | | | ||||
Loss before income taxes | $ | (10,167 | ) | $ | (16,104 | ) | $ | (32,388 | ) | |||||
| | | | | | | | | | | ||||
| | | | | | | | | | | ||||
Provision for income taxes is as follows: | ||||||||||||||
Years ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
(in thousands) | ||||||||||||||
Current: | ||||||||||||||
United States | ||||||||||||||
Federal | $ | — | $ | — | $ | — | ||||||||
State | 59 | 84 | 82 | |||||||||||
Foreign | 780 | 641 | 738 | |||||||||||
| | | | | | | | | | | ||||
Total current | 839 | 725 | 820 | |||||||||||
| | | | | | | | | | | ||||
Deferred: | ||||||||||||||
Foreign | 260 | 315 | 826 | |||||||||||
| | | | | | | | | | | ||||
Total deferred | 260 | 315 | 826 | |||||||||||
| | | | | | | | | | | ||||
Income tax provision | $ | 1,099 | $ | 1,040 | $ | 1,646 | ||||||||
| | | | | | | | | | | ||||
| | | | | | | | | | | ||||
Reconciliations of income taxes at the United States Federal statutory rate to the effective income tax rate are as follows: | ||||||||||||||
Years ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
(in thousands) | ||||||||||||||
Income tax benefit at the United States statutory rate | $ | (3,558 | ) | $ | (5,636 | ) | $ | (11,336 | ) | |||||
State income taxes | 38 | 55 | 53 | |||||||||||
Unrecognized tax benefits | 184 | (293 | ) | (832 | ) | |||||||||
Effect of change in valuation allowance | (6,835 | ) | 5,975 | 12,662 | ||||||||||
Foreign income tax rate differentials | 259 | (1,244 | ) | (788 | ) | |||||||||
Unremitted earnings of foreign subsidiaries | (758 | ) | 961 | — | ||||||||||
Foreign dividend | — | — | 383 | |||||||||||
Stock options | 686 | 450 | 1,298 | |||||||||||
Deemed distribution from foreign subsidiaries | 607 | 316 | 149 | |||||||||||
Discrete items, net | 9,143 | — | — | |||||||||||
Other, net | 1,333 | 456 | 57 | |||||||||||
| | | | | | | | | | | ||||
Income tax provision | $ | 1,099 | $ | 1,040 | $ | 1,646 | ||||||||
| | | | | | | | | | | ||||
| | | | | | | | | | | ||||
Significant components of current and long-term deferred income taxes are as follows: | ||||||||||||||
As of December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Current | Long Term | Current | Long Term | |||||||||||
(in thousands) | ||||||||||||||
Federal net operating loss carryforwards | $ | — | $ | 105,119 | $ | — | $ | 104,370 | ||||||
State net operating loss carryforwards | — | 2,210 | — | 2,250 | ||||||||||
Foreign net operating loss carryforwards | — | 1,280 | — | 1,421 | ||||||||||
Federal tax credit carryforwards | — | 16,669 | — | 17,814 | ||||||||||
State tax credit carryforwards | — | 5,293 | — | 5,543 | ||||||||||
Unremitted earnings of foreign subsidiaries | — | (8,800 | ) | — | (9,661 | ) | ||||||||
Intangible assets | — | 383 | — | 532 | ||||||||||
Property, plant and equipment | — | 4,548 | — | 4,796 | ||||||||||
Accrued compensation | 65 | — | 43 | — | ||||||||||
Inventories | 9,808 | — | 16,540 | — | ||||||||||
Stock compensation | — | 5,198 | — | 4,896 | ||||||||||
Warranty | 486 | — | 591 | (56 | ) | |||||||||
Other | 1,620 | (2,328 | ) | 2,671 | (2,406 | ) | ||||||||
| | | | | | | | | | | | | | |
Deferred taxes, gross | 11,979 | 129,572 | 19,845 | 129,499 | ||||||||||
| | | | | | | | | | | | | | |
Valuation allowance | (10,975 | ) | (128,982 | ) | (18,059 | ) | (129,409 | ) | ||||||
| | | | | | | | | | | | | | |
Deferred taxes, net | $ | 1,004 | $ | 590 | $ | 1,786 | $ | 90 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
At December 31, 2014, the Company had $141.6 million of deferred tax assets worldwide relating to net operating loss carryforwards, tax credit carryforwards and other temporary differences, which are available to reduce income taxes in future years. A valuation allowance must be established when it is "more likely than not" that all or a portion of deferred tax assets will not be realized. A review of all available positive and negative evidence needs to be considered, including a company's performance, the market environment in which the company operates, length of carryback and carryforward periods, existing sales backlog, and projections of future operating results. Where there are cumulative losses in recent years there is a strong presumption that a valuation allowance is needed. This presumption can be overcome in very limited circumstances. | ||||||||||||||
The Company is in a three year cumulative loss position in the United States. As a result, the Company maintains a 100% valuation allowance to reduce the carrying value of these related deferred tax assets to zero. The Company will continue to maintain a full valuation allowance for those tax assets until sustainable future levels of profitability are evident. Changes in the valuation allowance in 2014 and 2013 were attributable to changes in the composition of temporary differences and changes in net operating loss carryforwards. The remaining net deferred tax asset on the consolidated balance sheet represents the balances related to the activities of the foreign subsidiaries. | ||||||||||||||
At December 31, 2014, the Company has federal and state net operating loss carryforwards of $346.9 million and foreign net operating loss carryforwards of $4.3 million, expiring principally between 2015 and 2034. | ||||||||||||||
The Company has research and development and other tax credit carryforwards of $18.1 million at December 31, 2014 that can be used to reduce future federal and state income tax liabilities. These tax credit carryforwards expire principally between 2015 and 2028. In addition, the Company has foreign tax credit carryforwards of $3.9 million at December 31, 2014 that are available to reduce future U.S. income tax liabilities subject to certain limitations. These foreign tax credit carryforwards expire between 2015 and 2016. | ||||||||||||||
It is Company policy to provide taxes for the total anticipated tax impact of the undistributed earnings of our wholly-owned foreign subsidiaries, as such earnings are not expected to be reinvested indefinitely. The Company anticipates that U.S. tax resulting from remitting such earnings will be off-set by net operating loss or credit carryforwards to the extent available. In addition, the Company does not anticipate incurring a foreign withholding tax on remitting such earnings since it does not intend to remit the earnings as dividends. | ||||||||||||||
The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. The Company and most foreign subsidiaries are subject to income tax examinations by tax authorities for all years dating back to 2004. The Company's policy is to recognize interest related to unrecognized tax benefits as interest expense and penalties as operating expenses. The Company believes that it has appropriate support for the income tax positions taken and to be taken on its tax returns and that its accruals for tax liabilities are adequate for all open years based on an assessment of many factors including past experience and interpretations of tax law applied to the facts of each matter. | ||||||||||||||
At December 31, 2014, the Company had unrecognized tax benefits related to uncertain tax positions of approximately $8.0 million, of which approximately $5.6 million reduced the Company's deferred tax assets and the offsetting valuation allowance and $2.3 million was recorded in other long-term liabilities. The Company does not expect any significant changes in unrecognized tax benefits in 2015. The Company recognized $0.2 million in interest and penalty expense related to unrecognized tax benefits for each of the years-ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||
A reconciliation of the beginning and ending balance of unrecognized tax benefits are as follows: | ||||||||||||||
2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||
Balance at beginning of year | $ | 7,645 | $ | 7,719 | ||||||||||
Increases in unrecognized tax benefits as a result of tax positions taken during a prior period | 92 | 324 | ||||||||||||
Decreases in unrecognized tax benefits related to settlements with tax authorities | — | — | ||||||||||||
Increases in unrecognized tax benefits as a result of tax positions taken during the current period | 223 | — | ||||||||||||
Reductions to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations | — | (398 | ) | |||||||||||
| | | | | | | | |||||||
Balance at end of year | $ | 7,960 | $ | 7,645 | ||||||||||
| | | | | | | | |||||||
Recorded as other long-term liability | $ | 2,328 | $ | 2,343 | ||||||||||
Recorded as a decrease in deferred tax assets and offsetting valuation allowance | 5,632 | 5,302 | ||||||||||||
| | | | | | | | |||||||
$ | 7,960 | $ | 7,645 | |||||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
Quarterly_Results_of_Operation
Quarterly Results of Operations (unaudited) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||
Quarterly Results of Operations (unaudited) | ||||||||||||||||||||||||||
Quarterly Results of Operations (unaudited) | Note 19. Quarterly Results of Operations (unaudited) | |||||||||||||||||||||||||
Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | Sept. 30, | June 30, | March 31, | |||||||||||||||||||
2014(1) | 2014(2) | 2014(3) | 2014(4) | 2013(5) | 2013(6) | 2013(7) | 2013(8) | |||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||||||||
Revenue | $ | 62,530 | $ | 38,531 | $ | 41,150 | $ | 60,840 | $ | 58,574 | $ | 48,831 | $ | 47,501 | $ | 40,726 | ||||||||||
Gross profit | 18,796 | 15,144 | 14,484 | 21,740 | 21,280 | 16,976 | 16,737 | 12,943 | ||||||||||||||||||
Net income (loss) | 164 | (4,704 | ) | (6,900 | ) | 174 | 614 | (4,750 | ) | (4,019 | ) | (8,988 | ) | |||||||||||||
Net income (loss) per share basic and diluted | $ | 0 | $ | (0.04 | ) | $ | (0.06 | ) | $ | 0 | $ | 0.01 | $ | (0.04 | ) | $ | (0.04 | ) | $ | (0.08 | ) | |||||
-1 | Net income includes a $0.8 million charge to inventory reserves. | |||||||||||||||||||||||||
-2 | Net loss includes a $0.8 million charge to inventory reserves and a $2.3 million restructuring charge. | |||||||||||||||||||||||||
-3 | Net loss includes a $0.2 million charge to inventory reserves and a $0.1 million restructuring charge. | |||||||||||||||||||||||||
-4 | Net income includes a $0.2 million restructuring charge. | |||||||||||||||||||||||||
-5 | Net income includes $0.4 million of income related to the expiration of an uncertain tax position in a foreign jurisdiction. | |||||||||||||||||||||||||
-6 | Net loss includes $0.4 million related to the write off of certain deferred tax assets in foreign jurisdictions. | |||||||||||||||||||||||||
-7 | Net loss includes $0.4 million in restructuring charges, and $0.8 million from the gain on sale of dry strip assets and intellectual property. | |||||||||||||||||||||||||
-8 | Gross profit and net loss includes a $2.1 million charge to excess and obsolete inventory. Net loss includes $1.8 million in restructuring charges, and $0.4 million from the gain on sale of dry strip assets and intellectual property. | |||||||||||||||||||||||||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events. | |
Subsequent Events | Note 20. Subsequent Events |
Sale of Corporate Headquarters | |
On January 30, 2015, the Company sold its corporate headquarters to Beverly Property Owner LLC, an affiliate of Middleton Partners, based in Northbrook, Illinois, for the purchase price of $49 million. As part of the sale, the Company also entered into a 22-year lease agreement with Beverly Properties where the Company will pay annual rent of $4.7 million for the first year, with increasing annual rent payments thereafter. In conjunction with the sale, the Company paid off the outstanding Term Loan of $14.5 million and all accrued interest as well as a 2.0% prepayment penalty. The Company posted a security deposit of $5.9 million in the form of an irrevocable letter of credit at the time of the closing. | |
The Company expects that the transaction will be accounted for as a financing arrangement. As such, at the inception of the arrangement, the Company expects to record a financing obligation in the amount of $49.0 million and the property will be defined as an asset to remain on its books. The Company netted $33.1 million from the proceeds of the sale leaseback transaction. | |
Executive Separation Pay Agreements | |
On March 5, 2015, the Company entered into Executive Separation Pay Agreements with each of its executive officers other than Ms. Puma, which provide for twelve month's separation pay in the event of a termination without cause. A form of the Executive Separation Pay Agreement is filed as an Exhibit to this Form 10-K. | |
Schedule_IIValuation_and_Quali
Schedule II-Valuation and Qualifying Account | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Schedule II-Valuation and Qualifying Accounts | |||||||||||||||||
Schedule II-Valuation and Qualifying Accounts | Schedule II—Valuation and Qualifying Accounts | ||||||||||||||||
Axcelis Technologies, Inc. | |||||||||||||||||
(In thousands) | |||||||||||||||||
Balance at | Charged to | Deductions(**) | Other(*) | Balance at | |||||||||||||
Beginning of | Costs and | End of | |||||||||||||||
Period | Expenses | Period | |||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||
Allowance for doubtful accounts and returns | $ | 404 | $ | — | $ | — | $ | (14 | ) | $ | 390 | ||||||
Reserve for excess and obsolete inventory(**) | 25,091 | 1,003 | (2,452 | ) | — | 23,642 | |||||||||||
Year Ended December 31, 2013 | |||||||||||||||||
Allowance for doubtful accounts and returns | $ | 305 | $ | 96 | $ | — | $ | 3 | $ | 404 | |||||||
Reserve for excess and obsolete inventory(**) | 33,601 | 2,562 | (10,913 | ) | (159 | ) | 25,091 | ||||||||||
Year Ended December 31, 2012 | |||||||||||||||||
Allowance for doubtful accounts and returns | $ | 411 | $ | — | $ | (112 | ) | $ | 6 | $ | 305 | ||||||
Reserve for excess and obsolete inventory | 22,778 | 14,492 | (4,819 | ) | 1,150 | 33,601 | |||||||||||
(*) | Represents foreign currency translation adjustments. | ||||||||||||||||
(**) | Deductions include the disposal and sale of fully reserved inventory. | ||||||||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Summary of Significant Accounting Policies | |||||||||||
Basis of Presentation | (a) Basis of Presentation | ||||||||||
The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned, controlled subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. | |||||||||||
Events occurring subsequent to December 31, 2014 have been evaluated for potential recognition or disclosure in the consolidated financial statements. | |||||||||||
Use of Estimates | (b) Use of Estimates | ||||||||||
The preparation of these consolidated 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 the disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. On an ongoing basis, the Company evaluates its estimates and judgments, including those related to revenue recognition, the realizable value of inventories, valuing share-based compensation instruments and valuation allowances for deferred tax assets. Actual amounts could differ from these estimates. Changes in estimates are recorded in the period in which they become known. | |||||||||||
Foreign Currency | (c) Foreign Currency | ||||||||||
The Company has determined the functional currency for substantially all operations outside the United States is the local currency. Financial statements for these operations are translated into United States dollars at year-end rates as to assets and liabilities and average exchange rates during the year as to revenue and expenses. The resulting translation adjustments are recorded in stockholders' equity as an element of accumulated other comprehensive income (loss). Foreign currency transaction gains and losses are included in other income (expense) in the Consolidated Statements of Operations. | |||||||||||
For the year ended December 31, 2014 the Company realized $1.8 million of foreign exchange gains. For the year ended December 31, 2013 and 2012, the Company realized $0.3 million and $0.9 million of foreign exchange losses, respectively. | |||||||||||
Cash and Cash Equivalents | (d) Cash and Cash Equivalents | ||||||||||
Cash and cash equivalents consist of cash on hand and highly liquid investments with original maturities of ninety days or less. Cash equivalents consist primarily of money market securities and certificates of deposit. Cash equivalents are carried on the balance sheet at fair market value. | |||||||||||
Inventories | (e) Inventories | ||||||||||
Inventories are carried at lower of cost, determined using the first-in, first-out ("FIFO") method, or market. The Company periodically reviews its inventories and makes provisions as necessary for estimated obsolescence or damaged goods to ensure values approximate lower of cost or market. The amount of such markdowns is equal to the difference between cost of inventory and the estimated market value based upon assumptions about future demands, selling prices, and market conditions. | |||||||||||
The Company records an allowance for estimated excess inventory. The allowance is determined using management's assumptions of materials usage, based on estimates of demand and market conditions. If actual market conditions become less favorable than those projected by management, additional inventory write-downs may be required. | |||||||||||
Property, Plant and Equipment | (f) Property, Plant and Equipment | ||||||||||
Property and equipment are stated at cost, less accumulated depreciation and amortization. | |||||||||||
Depreciation and amortization are recorded using the straight-line method over the estimated useful lives of the related assets as follows: | |||||||||||
Asset Classification | Estimated Useful Life | ||||||||||
Buildings | 40 years | ||||||||||
Machinery and equipment | 3 to 10 years | ||||||||||
Repairs and maintenance costs are expensed as incurred. Expenditures for renewals and betterments are capitalized. | |||||||||||
Impairment of Long-Lived Assets | (g) Impairment of Long-Lived Assets | ||||||||||
The Company records impairment losses on long-lived assets when events and circumstances indicate that these assets might not be recoverable. Recoverability is measured by a comparison of the assets' carrying amount to their expected future undiscounted net cash flows. If such assets are considered to be impaired, the impairment is measured based on the amount by which the carrying value exceeds its fair value. | |||||||||||
The Company completed a test for recoverability due to indicators of impairment present during interim periods in 2014, 2013 and 2012 respectively. Results of tests for recoverability performed indicated that the carrying value of the asset group was recoverable for all periods presented. | |||||||||||
The Company did not record an impairment charge for the years ended December 31, 2014, 2013, or 2012. | |||||||||||
Future actual performance could be materially different from our current forecasts, which could impact future estimates of undiscounted cash flows and may result in the impairment of the carrying amount of the long-lived assets in the future. This could be caused by strategic decisions made in response to economic and competitive conditions, the impact of the economic environment on our customer base, or a material adverse change in the Company's relationships with significant customers. The Company performs an impairment analysis when circumstances or events warrant. | |||||||||||
Concentration of Risk and Off-Balance Sheet Risk | (h) Concentration of Risk and Off-Balance Sheet Risk | ||||||||||
Financial instruments that potentially subject the Company to concentrations of credit risk are principally cash equivalents and accounts receivable. The Company's cash equivalents are principally maintained in an investment grade money-market fund. | |||||||||||
The Company has no significant off-balance-sheet risk such as foreign exchange contracts, option contracts or other foreign hedging arrangements. | |||||||||||
The Company's exposure to market risk for changes in interest rates relates primarily to cash equivalents. The primary objective of the Company's investment activities is to preserve principal while maximizing yields without significantly increasing risk. This is accomplished by investing in marketable high investment grade securities. The Company does not use derivative financial instruments to manage its investment portfolio and does not expect operating results or cash flows to be affected to any significant degree by any change in market interest rates. | |||||||||||
The Company performs ongoing credit evaluations of its customers' financial condition and generally requires no collateral to secure accounts receivable. For selected overseas sales, the Company requires customers to obtain letters of credit before product is shipped. The Company maintains an allowance for doubtful accounts based on its assessment of the collectability of accounts receivable. The Company reviews the allowance for doubtful accounts monthly. The Company does not have any off-balance sheet credit exposure related to its customers. | |||||||||||
The Company's customers consist of semiconductor manufacturers located throughout the world and net sales to its ten largest customers accounted for 68.1%, 69.1% and 70.6% of revenue in 2014, 2013 and 2012, respectively. | |||||||||||
For the year ended December 31, 2014, the Company had two customers representing 17.4% and 12.3% of total revenue, respectively. For the years ended December 2013 and 2012, the Company had one customer representing 15.5% and 18.2% of total revenue, respectively, for each of the periods presented. | |||||||||||
As of December 31, 2014, the Company had two customers account for 21.7% and 20.4% of consolidated accounts receivable, respectively. As of December 31, 2013, the Company had three customers account for 23.2%, 14.2% and 13.6% of consolidated accounts receivable, respectively. | |||||||||||
Some of the components and sub-assemblies included in the Company's products are obtained either from a sole source or a limited group of suppliers. Disruption to the Company's supply source, resulting either from depressed economic conditions or other factors, could affect its ability to deliver products to its customers. | |||||||||||
Revenue Recognition | (i) Revenue Recognition | ||||||||||
The Company's revenue recognition policy involves significant judgment by management. As described below, the Company considers a broad array of facts and circumstances in determining when to recognize revenue, including contractual obligations to the customer, the complexity of the customer's post-delivery acceptance provisions, payment history, customer creditworthiness and the installation process. In the future, if the post-delivery acceptance provisions and installation process become more complex or result in a materially lower rate of acceptance, the Company may have to revise its revenue recognition policy, which could delay the timing of revenue recognition. | |||||||||||
The Company's system sales transactions are made up of multiple elements, including the system itself and elements that are not delivered simultaneously with the system. These undelivered elements might include a combination of installation services, extended warranty and support and spare parts, all of which are covered generally by a single sales price. | |||||||||||
The Company's system revenue arrangements with multiple elements are divided into separate units of accounting if specified criteria are met, including whether the delivered element has stand-alone value to the customer. If the criteria are met, then the consideration received is allocated among the separate units based on their relative selling price, and the revenue is recognized separately for each of the separate units. | |||||||||||
The Company determines selling price for each unit of accounting (element) using vendor specific objective evidence (VSOE) or third-party evidence (TPE), if they exist, otherwise, the Company uses best estimated selling price (BESP). The Company generally expects that it will not be able to establish TPE due to the nature of its products, and, as such, the Company typically will determine selling price using VSOE or BESP. | |||||||||||
Where required, the Company determines BESP for an individual element based on consideration of both market and Company-specific factors, including the selling price and profit margin for similar products, the cost to produce the deliverable and the anticipated margin on that deliverable and the characteristics of the varying markets in which the deliverable is sold. | |||||||||||
Systems are not sold separately and VSOE or TPE is not available for the systems element. Therefore the selling price associated with systems is based on BESP. The allocated value for installation in the arrangement includes the greater of (i) the relative selling price of the installation or (ii) the portion of the sales price that will not be received until the installation is completed (the "retention"). The selling price of installation is based upon the fair value of the service performed, including labor, which is based upon the estimated time to complete the installation at hourly rates, and material components, both of which are sold separately. The selling price of all other elements (extended warranty for support, spare parts and labor) is based upon the price charged when these elements are sold separately, or VSOE. | |||||||||||
Product revenue for products which have demonstrated market acceptance, is generally recognized upon shipment provided title and risk of loss has passed to the customer, evidence of an arrangement exists, prices are contractually fixed or determinable, collectability is reasonably assured through historical collection results and regular credit evaluations, and there are no uncertainties regarding customer acceptance. Revenue from installation services is recognized at the time acceptance has occurred, as defined in the sales documentation or, for certain customers, when both acceptance has occurred and retention payment has been received. Revenue for other elements is recognized at the time products are shipped or the related services are performed. | |||||||||||
The Company generally recognizes revenue for systems which have demonstrated market acceptance at the time of shipment because the customer's post-delivery acceptance provisions and installation process have been established to be routine, commercially inconsequential and perfunctory. The Company believes the risk of failure to complete a system installation is remote. | |||||||||||
For initial shipments of systems with new technologies or in the small number of instances where the Company is unsure of meeting the customer's specifications or obtaining customer acceptance upon shipment of the system, it will defer the recognition of systems revenue and related costs until written customer acceptance of the system is obtained. This deferral period is generally within twelve months of shipment. | |||||||||||
Revenue related to maintenance and service contracts is recognized ratably over the duration of the contracts, or based on parts usage, where appropriate. Revenue related to service hours is recognized when the services are performed. | |||||||||||
Product revenue includes revenue from system sales, sales of spare parts, the spare parts component of maintenance and service contracts and product upgrades. Services revenue includes the labor component of maintenance and service contract amounts charged for on-site service personnel. | |||||||||||
Axcelis reports revenue net of any taxes collected from customers and remitted to governmental authorities, with the collected taxes recorded as current liabilities until remitted to the relevant government authority. | |||||||||||
Shipping and Handling Costs | (j) Shipping and Handling Costs | ||||||||||
Shipping and handling costs are included in cost of revenue. | |||||||||||
Stock-Based Compensation | (k) Stock-Based Compensation | ||||||||||
The Company generally recognizes compensation expense for all share-based payments to employees and directors, including grants of employee stock options, based on the grant-date fair value of those share-based payments using the Black-Scholes option pricing model, adjusted for expected forfeitures. Other valuation models may be utilized in the limited circumstances where awards with market-based vesting considerations, such as the price of the Company's common stock, are granted. Stock-based compensation expense is recognized ratably over the requisite service period. | |||||||||||
See Note 13 for additional information relating to stock-based compensation. | |||||||||||
Income Taxes | (l) Income Taxes | ||||||||||
The Company records income taxes using the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases, and operating loss and tax credit carryforwards. | |||||||||||
The Company's consolidated financial statements contain certain deferred tax assets which have arisen primarily as a result of operating losses, as well as other temporary differences between financial and tax accounting. The Company establishes a valuation allowance if the likelihood of realization of the deferred tax assets is reduced based on an evaluation of objective verifiable evidence. Significant management judgment is required in determining the Company's provision for income taxes, the Company's deferred tax assets and liabilities and any valuation allowance recorded against those net deferred tax assets. The Company evaluates the weight of all available evidence to determine whether it is more likely than not that some portion or all of the net deferred income tax assets will not be realized. | |||||||||||
Income taxes include the largest amount of tax benefit for an uncertain tax position that is more likely than not to be sustained upon audit based on the technical merits of the tax position. Settlements with tax authorities, the expiration of statutes of limitations for particular tax positions, or obtaining new information on particular tax positions may cause a change to the effective tax rate. The Company recognizes accrued interest related to unrecognized tax benefits as interest expense and penalties as operating expense in the consolidated statements of operations. | |||||||||||
Computation of Net Loss per Share | (m) Computation of Net Loss per Share | ||||||||||
Basic earnings per share is computed by dividing income available to common stockholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) for the period. The computation of diluted earnings per share is similar to basic earnings per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive common shares had been issued, calculated using the treasury stock method. | |||||||||||
The Company incurred net losses for the years ended December 31, 2014, 2013 and 2012, and has excluded 4,663,421, 3,547,578 and 1,563,417 of incremental shares, respectively, attributable to outstanding stock options, restricted stock and restricted stock units from the calculation of net loss per share because the effect would have been anti-dilutive. | |||||||||||
The components of net loss per share are as follows: | |||||||||||
Years Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(in thousands, except per share data) | |||||||||||
Net loss available to common stockholders | $ | (11,266 | ) | $ | (17,144 | ) | $ | (34,034 | ) | ||
| | | | | | | | | | | |
| | | | | | | | | | | |
Weighted average common shares outstanding used in computing basic net loss per share | 111,450 | 108,869 | 107,619 | ||||||||
Incremental shares | — | — | — | ||||||||
| | | | | | | | | | | |
Weighted average common shares outstanding used in computing diluted net loss per share | 111,450 | 108,869 | 107,619 | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Net loss per share | |||||||||||
Basic | $ | (0.10 | ) | $ | (0.16 | ) | $ | (0.32 | ) | ||
Diluted | $ | (0.10 | ) | $ | (0.16 | ) | $ | (0.32 | ) | ||
Accumulated Other Comprehensive Income | (n) Accumulated Other Comprehensive Income | ||||||||||
The following table presents the changes in accumulated other comprehensive income, net of tax, by component for the year ended December 31, 2014: | |||||||||||
Foreign | Defined benefit | Total | |||||||||
currency | pension plan | ||||||||||
(in thousands) | |||||||||||
Balance at December 31, 2013 | $ | 6,070 | $ | (331 | ) | $ | 5,739 | ||||
Other comprehensive loss | (4,150 | ) | (313 | ) | (4,463 | ) | |||||
| | | | | | | | | | | |
Balance at December 31, 2014 | $ | 1,920 | $ | (644 | ) | $ | 1,276 | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Recent Accounting Guidance | (o) Recent Accounting Guidance | ||||||||||
Accounting Standards or Updates Recently Adopted | |||||||||||
On January 1, 2014, the Company adopted Accounting Standards Update (ASU) No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exist. ASU 2013-11 amended the presentation requirements of ASC 740, Income Taxes, and requires that a liability related to an unrecognized tax benefit be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, similar tax loss, or a tax credit carryforward. To the extent the tax benefit is not available at the reporting date under the governing tax law or if the entity does not intend to use the deferred tax asset for such purpose, the unrecognized tax benefit should be presented as a liability and not combined with deferred tax assets. The ASU became effective for annual periods, and interim periods within those years, beginning after December 15, 2013, which is fiscal 2014 for the Company. The amendments are to be applied to all unrecognized tax benefits that exist as of the effective date and may be applied retrospectively to each prior reporting period presented. The adoption of this standard did not have a material impact on our consolidated financial statements. | |||||||||||
Accounting Standards or Updates Not Yet Effective | |||||||||||
In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU No. 2014-09, "Revenue from Contracts with Customers," which provides guidance for revenue recognition. The standard's core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The new guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. The Company is currently assessing the potential impact of ASU No. 2014-09 on its consolidated financial statements. | |||||||||||
In August 2014, the FASB issued ASU No. 2014-15, "Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern." ASU 2014-15 introduces an explicit requirement for management to assess if there is substantial doubt about an entity's ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. In connection with each annual and interim period, management must assess if there is substantial doubt about an entity's ability to continue as a going concern within one year after the issuance date. Disclosures are required if conditions give rise to substantial doubt. ASU 2014-15 is effective for all entities in the first annual period ending after December 15, 2016. The Company expects to comply with this standard once effective. | |||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Summary of Significant Accounting Policies | |||||||||||
Schedule of estimated useful lives of the related assets | |||||||||||
Asset Classification | Estimated Useful Life | ||||||||||
Buildings | 40 years | ||||||||||
Machinery and equipment | 3 to 10 years | ||||||||||
Schedule of components of net loss per share | |||||||||||
Years Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(in thousands, except per share data) | |||||||||||
Net loss available to common stockholders | $ | (11,266 | ) | $ | (17,144 | ) | $ | (34,034 | ) | ||
| | | | | | | | | | | |
| | | | | | | | | | | |
Weighted average common shares outstanding used in computing basic net loss per share | 111,450 | 108,869 | 107,619 | ||||||||
Incremental shares | — | — | — | ||||||||
| | | | | | | | | | | |
Weighted average common shares outstanding used in computing diluted net loss per share | 111,450 | 108,869 | 107,619 | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Net loss per share | |||||||||||
Basic | $ | (0.10 | ) | $ | (0.16 | ) | $ | (0.32 | ) | ||
Diluted | $ | (0.10 | ) | $ | (0.16 | ) | $ | (0.32 | ) | ||
Schedule of changes in accumulated other comprehensive income, net of tax | |||||||||||
Foreign | Defined benefit | Total | |||||||||
currency | pension plan | ||||||||||
(in thousands) | |||||||||||
Balance at December 31, 2013 | $ | 6,070 | $ | (331 | ) | $ | 5,739 | ||||
Other comprehensive loss | (4,150 | ) | (313 | ) | (4,463 | ) | |||||
| | | | | | | | | | | |
Balance at December 31, 2014 | $ | 1,920 | $ | (644 | ) | $ | 1,276 | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Accounts_Receivable_net_Tables
Accounts Receivable, net (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accounts Receivable, net | ||||||||
Schedule of components of accounts receivable | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Trade receivables | $ | 43,184 | $ | 36,991 | ||||
Allowance for doubtful accounts | (390 | ) | (404 | ) | ||||
| | | | | | | | |
$ | 42,794 | $ | 36,587 | |||||
| | | | | | | | |
| | | | | | | | |
Inventories_net_Tables
Inventories, net (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventories, net | ||||||||
Schedule of components of inventories | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Raw materials | $ | 65,723 | $ | 56,942 | ||||
Work in process | 22,358 | 27,462 | ||||||
Finished goods | 15,982 | 11,385 | ||||||
| | | | | | | | |
$ | 104,063 | $ | 95,789 | |||||
| | | | | | | | |
| | | | | | | | |
Property_Plant_and_Equipment_n1
Property, Plant and Equipment, net (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment, net | ||||||||
Schedule of components of property, plant and equipment | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Land and buildings | $ | 78,757 | $ | 79,076 | ||||
Machinery and equipment | 8,370 | 7,774 | ||||||
Construction in process | 370 | 356 | ||||||
| | | | | | | | |
Total cost | 87,497 | 87,206 | ||||||
Accumulated depreciation | (57,033 | ) | (55,200 | ) | ||||
| | | | | | | | |
Property, plant and equipment, net | $ | 30,464 | $ | 32,006 | ||||
| | | | | | | | |
| | | | | | | | |
Assets_Manufactured_for_Intern1
Assets Manufactured for Internal Use (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Assets Manufactured for Internal Use | ||||||||
Schedule of components of assets manufactured for internal use | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Internal use assets | $ | 24,309 | $ | 23,409 | ||||
Construction in process | 3,465 | 5,263 | ||||||
| | | | | | | | |
Total cost | 27,774 | 28,672 | ||||||
Accumulated depreciation | (17,927 | ) | (15,774 | ) | ||||
| | | | | | | | |
Assets manufactured for internal use, net | $ | 9,847 | $ | 12,898 | ||||
| | | | | | | | |
| | | | | | | | |
Restructuring_Charges_Tables
Restructuring Charges (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Restructuring Charges. | |||||
Schedule of changes in restructuring liability | |||||
Severance | |||||
(In thousands) | |||||
Balance at December 31, 2011 | $ | 171 | |||
Severance and related costs | 4,169 | ||||
Cash payments | (3,551 | ) | |||
Non-cash items | (130 | ) | |||
| | | | | |
Balance at December 31, 2012 | $ | 659 | |||
Severance and related costs | 2,334 | ||||
Cash payments | (2,950 | ) | |||
| | | | | |
Balance at December 31, 2013 | $ | 43 | |||
Severance and related costs | 2,565 | ||||
Cash payments | (2,127 | ) | |||
| | | | | |
Balance at December 31, 2014 | $ | 481 | |||
| | | | | |
| | | | | |
Product_Warranty_Tables
Product Warranty (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Product Warranty | |||||||||||
Schedule of product warranty liability | |||||||||||
Years Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(in thousands) | |||||||||||
Balance at January 1 (beginning of year) | $ | 1,428 | $ | 1,801 | $ | 3,697 | |||||
Warranties issued during the period | 1,743 | 2,240 | 3,042 | ||||||||
Settlements made during the period | (2,096 | ) | (1,515 | ) | (3,010 | ) | |||||
Changes in estimate of liability for pre-existing warranties during the period | 451 | (1,098 | ) | (1,928 | ) | ||||||
| | | | | | | | | | | |
Balance at December 31 (end of year) | $ | 1,526 | $ | 1,428 | $ | 1,801 | |||||
| | | | | | | | | | | |
Amount classified as current | $ | 1,352 | $ | 1,316 | $ | 1,700 | |||||
Amount classified within other long-term liabilities | 174 | 112 | 101 | ||||||||
| | | | | | | | | | | |
Total warranty liability | $ | 1,526 | $ | 1,428 | $ | 1,801 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Employee Benefit Plans | ||||||||
Schedule of classification of liabilities in Consolidated Balance Sheets | ||||||||
Year Ended | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Current: | ||||||||
Accrued compensation | $ | 837 | $ | 638 | ||||
| | | | | | | | |
Total current liabilities | $ | 837 | $ | 638 | ||||
Long-term: | ||||||||
Other long-term liabilities | 3,323 | 3,416 | ||||||
| | | | | | | | |
Total liabilities | $ | 4,160 | $ | 4,054 | ||||
| | | | | | | | |
| | | | | | | | |
Stock_Award_Plans_and_Stock_Ba1
Stock Award Plans and Stock Based Compensation (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Stock Award Plans and Stock Based Compensation | ||||||||||||||
Schedule of estimated weighted-average assumptions used in calculation of fair value of options granted | ||||||||||||||
Years ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Weighted-average expected volatility | 60.59-98.40 | % | 98.1 | % | 97.8%-113.55 | % | ||||||||
Weighted-average expected term | 3.75-4.71 years | 4.7 years | 3.8-6.1 years | |||||||||||
Risk-free interest rate | 1.19%-1.67 | % | 0.7%-1.4 | % | 0.45%-1.37 | % | ||||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | ||||||||
Summary of stock option activity | ||||||||||||||
Options | Weighted | Weighted | Aggregate | |||||||||||
Average | Average | Intrinsic | ||||||||||||
Exercise | Remaining | Value | ||||||||||||
Price | Contractual | |||||||||||||
Term | ||||||||||||||
(in thousands) | (years) | (in thousands) | ||||||||||||
Outstanding at December 31, 2013 | 22,299 | $ | 1.89 | |||||||||||
Granted | 3,976 | 1.81 | ||||||||||||
Exercised | (2,418 | ) | 1.2 | |||||||||||
Canceled | (991 | ) | 1.64 | |||||||||||
Expired | (1,162 | ) | 8.28 | |||||||||||
| | | | | | | | | | | | | | |
Outstanding at December 31, 2014 | 21,704 | $ | 1.62 | 5.41 | $ | 22,238 | ||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Exercisable at December 31, 2014 | 12,461 | $ | 1.55 | 5.09 | $ | 14,347 | ||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Options Vested or Expected to Vest at December 31, 2014(1) | 21,102 | $ | 1.61 | 5.47 | $ | 13,448 | ||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
-1 | In addition to the vested options, the Company expects a portion of the unvested options to vest at some point in the future. Options expected to vest is calculated by applying an estimated forfeiture rate to the unvested options. | |||||||||||||
Schedule of changes in the Company's non-vested restricted stock units | ||||||||||||||
Shares/units | Weighted-Average | |||||||||||||
Grant Date Fair | ||||||||||||||
Value per Share | ||||||||||||||
(in thousands) | ||||||||||||||
Outstanding at December 31, 2013 | 23 | $ | 1.39 | |||||||||||
Granted | 90 | 2.17 | ||||||||||||
Vested | (10 | ) | 1.45 | |||||||||||
Forfeited | — | — | ||||||||||||
| | | | | | | | |||||||
Outstanding at December 31, 2014 | 103 | $ | 2.07 | |||||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Fair Value Measurements | ||||||||||||||
Schedule of assets measured at fair value | ||||||||||||||
December 31, 2014 | ||||||||||||||
Fair Value Measurements | ||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||
(in thousands) | ||||||||||||||
Assets | ||||||||||||||
Cash equivalents: | ||||||||||||||
Money market funds | $ | 7,004 | $ | — | $ | — | $ | 7,004 | ||||||
Liabilities | ||||||||||||||
Term Loan | $ | — | $ | 14,530 | $ | — | $ | 14,530 | ||||||
December 31, 2013 | ||||||||||||||
Fair Value Measurements | ||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||
(in thousands) | ||||||||||||||
Assets | ||||||||||||||
Cash equivalents: | ||||||||||||||
Money market funds | $ | 10,504 | $ | — | $ | — | $ | 10,504 | ||||||
Liabilities | ||||||||||||||
Term Loan | $ | — | $ | 15,000 | $ | — | $ | 15,000 | ||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies | |||||
Schedule of future minimum lease commitments on non-cancelable operating leases | |||||
Operating | |||||
Leases | |||||
(in thousands) | |||||
2015 | $ | 2,543 | |||
2016 | 1,280 | ||||
2017 | 607 | ||||
2018 | 259 | ||||
2019 | 222 | ||||
Thereafter | 222 | ||||
| | | | | |
$ | 5,133 | ||||
| | | | | |
| | | | | |
Business_Segment_and_Geographi1
Business Segment and Geographic Region Information (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Business Segment and Geographic Region Information | |||||||||||
Schedule of revenue by product lines | |||||||||||
Years ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(in thousands) | |||||||||||
Ion implantation systems, services, and royalties | $ | 183,148 | $ | 164,030 | $ | 156,090 | |||||
Other systems and services | 19,903 | 31,602 | 47,295 | ||||||||
| | | | | | | | | | | |
$ | 203,051 | $ | 195,632 | $ | 203,385 | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of revenue and long-lived assets by geographic region | |||||||||||
Revenue | Long-Lived | ||||||||||
Assets | |||||||||||
(in thousands) | |||||||||||
2014 | |||||||||||
United States | $ | 126,255 | $ | 40,001 | |||||||
Europe | 29,140 | — | |||||||||
Asia Pacific | 47,656 | 299 | |||||||||
| | | | | | | | ||||
$ | 203,051 | $ | 40,300 | ||||||||
| | | | | | | | ||||
| | | | | | | | ||||
2013 | |||||||||||
United States | $ | 116,969 | $ | 44,424 | |||||||
Europe | 27,933 | — | |||||||||
Asia Pacific | 50,730 | 480 | |||||||||
| | | | | | | | ||||
$ | 195,632 | $ | 44,904 | ||||||||
| | | | | | | | ||||
| | | | | | | | ||||
2012 | |||||||||||
United States | $ | 132,159 | $ | 43,440 | |||||||
Europe | 27,636 | — | |||||||||
Asia Pacific | 43,590 | 752 | |||||||||
| | | | | | | | ||||
$ | 203,385 | $ | 44,192 | ||||||||
| | | | | | | | ||||
| | | | | | | | ||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Income Taxes | ||||||||||||||
Schedule of loss before income taxes | ||||||||||||||
Years ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
(in thousands) | ||||||||||||||
United States | $ | (11,987 | ) | $ | (18,998 | ) | $ | (37,682 | ) | |||||
Foreign | 1,820 | 2,894 | 5,294 | |||||||||||
| | | | | | | | | | | ||||
Loss before income taxes | $ | (10,167 | ) | $ | (16,104 | ) | $ | (32,388 | ) | |||||
| | | | | | | | | | | ||||
| | | | | | | | | | | ||||
Schedule of provision for income taxes | ||||||||||||||
Years ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
(in thousands) | ||||||||||||||
Current: | ||||||||||||||
United States | ||||||||||||||
Federal | $ | — | $ | — | $ | — | ||||||||
State | 59 | 84 | 82 | |||||||||||
Foreign | 780 | 641 | 738 | |||||||||||
| | | | | | | | | | | ||||
Total current | 839 | 725 | 820 | |||||||||||
| | | | | | | | | | | ||||
Deferred: | ||||||||||||||
Foreign | 260 | 315 | 826 | |||||||||||
| | | | | | | | | | | ||||
Total deferred | 260 | 315 | 826 | |||||||||||
| | | | | | | | | | | ||||
Income tax provision | $ | 1,099 | $ | 1,040 | $ | 1,646 | ||||||||
| | | | | | | | | | | ||||
| | | | | | | | | | | ||||
Schedule of reconciliations of income taxes at the United States Federal statutory rate to the effective income tax rate | ||||||||||||||
Years ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
(in thousands) | ||||||||||||||
Income tax benefit at the United States statutory rate | $ | (3,558 | ) | $ | (5,636 | ) | $ | (11,336 | ) | |||||
State income taxes | 38 | 55 | 53 | |||||||||||
Unrecognized tax benefits | 184 | (293 | ) | (832 | ) | |||||||||
Effect of change in valuation allowance | (6,835 | ) | 5,975 | 12,662 | ||||||||||
Foreign income tax rate differentials | 259 | (1,244 | ) | (788 | ) | |||||||||
Unremitted earnings of foreign subsidiaries | (758 | ) | 961 | — | ||||||||||
Foreign dividend | — | — | 383 | |||||||||||
Stock options | 686 | 450 | 1,298 | |||||||||||
Deemed distribution from foreign subsidiaries | 607 | 316 | 149 | |||||||||||
Discrete items, net | 9,143 | — | — | |||||||||||
Other, net | 1,333 | 456 | 57 | |||||||||||
| | | | | | | | | | | ||||
Income tax provision | $ | 1,099 | $ | 1,040 | $ | 1,646 | ||||||||
| | | | | | | | | | | ||||
| | | | | | | | | | | ||||
Schedule of significant components of current and long-term deferred income taxes | ||||||||||||||
As of December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Current | Long Term | Current | Long Term | |||||||||||
(in thousands) | ||||||||||||||
Federal net operating loss carryforwards | $ | — | $ | 105,119 | $ | — | $ | 104,370 | ||||||
State net operating loss carryforwards | — | 2,210 | — | 2,250 | ||||||||||
Foreign net operating loss carryforwards | — | 1,280 | — | 1,421 | ||||||||||
Federal tax credit carryforwards | — | 16,669 | — | 17,814 | ||||||||||
State tax credit carryforwards | — | 5,293 | — | 5,543 | ||||||||||
Unremitted earnings of foreign subsidiaries | — | (8,800 | ) | — | (9,661 | ) | ||||||||
Intangible assets | — | 383 | — | 532 | ||||||||||
Property, plant and equipment | — | 4,548 | — | 4,796 | ||||||||||
Accrued compensation | 65 | — | 43 | — | ||||||||||
Inventories | 9,808 | — | 16,540 | — | ||||||||||
Stock compensation | — | 5,198 | — | 4,896 | ||||||||||
Warranty | 486 | — | 591 | (56 | ) | |||||||||
Other | 1,620 | (2,328 | ) | 2,671 | (2,406 | ) | ||||||||
| | | | | | | | | | | | | | |
Deferred taxes, gross | 11,979 | 129,572 | 19,845 | 129,499 | ||||||||||
| | | | | | | | | | | | | | |
Valuation allowance | (10,975 | ) | (128,982 | ) | (18,059 | ) | (129,409 | ) | ||||||
| | | | | | | | | | | | | | |
Deferred taxes, net | $ | 1,004 | $ | 590 | $ | 1,786 | $ | 90 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Schedule of reconciliation of the beginning and ending balance of unrecognized tax benefits | ||||||||||||||
2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||
Balance at beginning of year | $ | 7,645 | $ | 7,719 | ||||||||||
Increases in unrecognized tax benefits as a result of tax positions taken during a prior period | 92 | 324 | ||||||||||||
Decreases in unrecognized tax benefits related to settlements with tax authorities | — | — | ||||||||||||
Increases in unrecognized tax benefits as a result of tax positions taken during the current period | 223 | — | ||||||||||||
Reductions to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations | — | (398 | ) | |||||||||||
| | | | | | | | |||||||
Balance at end of year | $ | 7,960 | $ | 7,645 | ||||||||||
| | | | | | | | |||||||
Recorded as other long-term liability | $ | 2,328 | $ | 2,343 | ||||||||||
Recorded as a decrease in deferred tax assets and offsetting valuation allowance | 5,632 | 5,302 | ||||||||||||
| | | | | | | | |||||||
$ | 7,960 | $ | 7,645 | |||||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
Quarterly_Results_of_Operation1
Quarterly Results of Operations (unaudited) (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||
Quarterly Results of Operations (unaudited) | ||||||||||||||||||||||||||
Schedule of quarterly results of operations | ||||||||||||||||||||||||||
Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | Sept. 30, | June 30, | March 31, | |||||||||||||||||||
2014(1) | 2014(2) | 2014(3) | 2014(4) | 2013(5) | 2013(6) | 2013(7) | 2013(8) | |||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||||||||
Revenue | $ | 62,530 | $ | 38,531 | $ | 41,150 | $ | 60,840 | $ | 58,574 | $ | 48,831 | $ | 47,501 | $ | 40,726 | ||||||||||
Gross profit | 18,796 | 15,144 | 14,484 | 21,740 | 21,280 | 16,976 | 16,737 | 12,943 | ||||||||||||||||||
Net income (loss) | 164 | (4,704 | ) | (6,900 | ) | 174 | 614 | (4,750 | ) | (4,019 | ) | (8,988 | ) | |||||||||||||
Net income (loss) per share basic and diluted | $ | 0 | $ | (0.04 | ) | $ | (0.06 | ) | $ | 0 | $ | 0.01 | $ | (0.04 | ) | $ | (0.04 | ) | $ | (0.08 | ) | |||||
-1 | Net income includes a $0.8 million charge to inventory reserves. | |||||||||||||||||||||||||
-2 | Net loss includes a $0.8 million charge to inventory reserves and a $2.3 million restructuring charge. | |||||||||||||||||||||||||
-3 | Net loss includes a $0.2 million charge to inventory reserves and a $0.1 million restructuring charge. | |||||||||||||||||||||||||
-4 | Net income includes a $0.2 million restructuring charge. | |||||||||||||||||||||||||
-5 | Net income includes $0.4 million of income related to the expiration of an uncertain tax position in a foreign jurisdiction. | |||||||||||||||||||||||||
-6 | Net loss includes $0.4 million related to the write off of certain deferred tax assets in foreign jurisdictions. | |||||||||||||||||||||||||
-7 | Net loss includes $0.4 million in restructuring charges, and $0.8 million from the gain on sale of dry strip assets and intellectual property. | |||||||||||||||||||||||||
-8 | Gross profit and net loss includes a $2.1 million charge to excess and obsolete inventory. Net loss includes $1.8 million in restructuring charges, and $0.4 million from the gain on sale of dry strip assets and intellectual property. | |||||||||||||||||||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Foreign Currency | |||
Foreign exchange gains (losses) realized | $1.80 | ($0.30) | ($0.90) |
Buildings | |||
Property, plant and equipment, net | |||
Useful life | 40 years | ||
Machinery and equipment | Minimum | |||
Property, plant and equipment, net | |||
Useful life | 3 years | ||
Machinery and equipment | Maximum | |||
Property, plant and equipment, net | |||
Useful life | 10 years |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details 2) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
item | item | item | |
Revenue | Customer concentration risk | |||
Concentration of risk | |||
Number of customers | 2 | 1 | 1 |
Revenue | Customer concentration risk | Ten largest customers | |||
Concentration of risk | |||
Number of customers | 10 | 10 | 10 |
Percentage of concentration risk | 68.10% | 69.10% | 70.60% |
Revenue | Customer concentration risk | One customer | |||
Concentration of risk | |||
Percentage of concentration risk | 17.40% | 15.50% | 18.20% |
Revenue | Customer concentration risk | Second customer | |||
Concentration of risk | |||
Percentage of concentration risk | 12.30% | ||
Consolidated accounts receivable | Credit concentration risk | |||
Concentration of risk | |||
Number of customers | 2 | 3 | |
Consolidated accounts receivable | Credit concentration risk | One customer | |||
Concentration of risk | |||
Percentage of concentration risk | 21.70% | 23.20% | |
Consolidated accounts receivable | Credit concentration risk | Second customer | |||
Concentration of risk | |||
Percentage of concentration risk | 20.40% | 14.20% | |
Consolidated accounts receivable | Credit concentration risk | Third customer | |||
Concentration of risk | |||
Percentage of concentration risk | 13.60% |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Details 3) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue recognition | |||||||||||
Maximum deferral period from shipment for recognition of systems revenue and related costs | 12 months | ||||||||||
Anti dilutive shares excluded from calculation of net loss per share | 4,663,421 | 3,547,578 | 1,563,417 | ||||||||
Net loss per share | |||||||||||
Net loss attributable to common stockholders (in dollars) | $164 | ($4,704) | ($6,900) | $174 | $614 | ($4,750) | ($4,019) | ($8,988) | ($11,266) | ($17,144) | ($34,034) |
Weighted average common shares outstanding used in computing basic net loss per share | 111,450,000 | 108,869,000 | 107,619,000 | ||||||||
Weighted average common shares outstanding used in computing diluted net loss per share | 111,450,000 | 108,869,000 | 107,619,000 | ||||||||
Net loss per share | |||||||||||
Basic (in dollars per share) | ($0.10) | ($0.16) | ($0.32) | ||||||||
Diluted (in dollars per share) | ($0.10) | ($0.16) | ($0.32) |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies (Details 4) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Changes in accumulated other comprehensive income, net of tax | |||
Balance at the beginning of period | $5,739 | ||
Other comprehensive loss | -4,463 | 719 | 243 |
Balance at the end of period | 1,276 | 5,739 | |
Foreign currency | |||
Changes in accumulated other comprehensive income, net of tax | |||
Balance at the beginning of period | 6,070 | ||
Other comprehensive loss | -4,150 | ||
Balance at the end of period | 1,920 | ||
Defined benefit pension plan | |||
Changes in accumulated other comprehensive income, net of tax | |||
Balance at the beginning of period | -331 | ||
Other comprehensive loss | -313 | ||
Balance at the end of period | ($644) |
Gain_on_Sale_of_Dry_Strip_Asse1
Gain on Sale of Dry Strip Assets and Intellectual Property (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | |||
Dec. 03, 2012 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 03, 2012 | |
Sale of assets | ||||||
Gain on sale of dry strip assets and intellectual property | $1,167,000 | $7,904,000 | ||||
Proceeds from sale of dry strip assets and intellectual property | 1,200,000 | 8,716,000 | ||||
Dry strip assets and intellectual property | ||||||
Sale of assets | ||||||
Purchase price | 10,700,000 | |||||
Contingent purchase price | 2,000,000 | 2,000,000 | ||||
Gain on sale of dry strip assets and intellectual property | 800,000 | 400,000 | 1,200,000 | 7,900,000 | ||
Proceeds from sale of dry strip assets and intellectual property | 8,700,000 | |||||
Offset Against Proceeds from Sale of Assets | $800,000 | |||||
Period Through September 2013 | Dry strip assets and intellectual property | ||||||
Sale of assets | ||||||
Size of dry strip wafer equipment and products, Company license to make and sell (in millimeters) | 300 | |||||
Period Through December 2015 | Dry strip assets and intellectual property | ||||||
Sale of assets | ||||||
Size of dry strip wafer equipment and products, Company license to make and sell (in millimeters) | 200 |
Restricted_Cash_Details
Restricted Cash (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Restricted Cash | ||
Restricted cash | $825 | |
Long-term restricted cash | $825 |
Accounts_Receivable_net_Detail
Accounts Receivable, net (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts Receivable, net | ||
Trade receivables | $43,184 | $36,991 |
Allowance for doubtful accounts | -390 | -404 |
Accounts receivable, net | $42,794 | $36,587 |
Inventories_net_Details
Inventories, net (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Jun. 30, 2014 | |
Inventories, net | |||||
Raw materials | $65,723,000 | $56,942,000 | |||
Work in process | 22,358,000 | 27,462,000 | |||
Finished goods (completed systems) | 15,982,000 | 11,385,000 | |||
Inventories, net | 104,063,000 | 95,789,000 | |||
Inventories, net additional information | |||||
Inventory reserves | 800,000 | 800,000 | 200,000 | ||
Charges to cost of sales due to below normal production capacity | 1,000,000 | 600,000 | 2,600,000 | ||
Charges to cost of sales due to lower of cost or market value | 800,000 | 700,000 | 500,000 | ||
Inventory reserves | |||||
Inventories, net additional information | |||||
Decrease in inventory reserves | 2,452,000 | 10,913,000 | 4,819,000 | ||
Decrease in inventory reserves due to obsolescence and excess inventory | 1,300,000 | ||||
Reduction in reserve due to sales of previously fully reserved inventory | 1,100,000 | ||||
Provision charge to reserve | 1,003,000 | 2,562,000 | 14,492,000 | ||
Inventory reserves | $23,600,000 | $25,100,000 |
Property_Plant_and_Equipment_n2
Property, Plant and Equipment, net (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Property, plant and equipment, net | |||
Gross | $87,497,000 | $87,206,000 | |
Accumulated depreciation | -57,033,000 | -55,200,000 | |
Net | 30,464,000 | 32,006,000 | |
Depreciation expense | 2,400,000 | 3,200,000 | 3,300,000 |
Land and buildings | |||
Property, plant and equipment, net | |||
Gross | 78,757,000 | 79,076,000 | |
Machinery and equipment | |||
Property, plant and equipment, net | |||
Gross | 8,370,000 | 7,774,000 | |
Construction in process | |||
Property, plant and equipment, net | |||
Gross | $370,000 | $356,000 |
Assets_Manufactured_for_Intern2
Assets Manufactured for Internal Use (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Assets manufactured for internal use | |||
Cost | $87,497,000 | $87,206,000 | |
Accumulated depreciation | -57,033,000 | -55,200,000 | |
Net | 30,464,000 | 32,006,000 | |
Depreciation expense | 2,400,000 | 3,200,000 | 3,300,000 |
Assets Manufactured for Internal Use | |||
Assets manufactured for internal use | |||
Cost | 27,774,000 | 28,672,000 | |
Accumulated depreciation | -17,927,000 | -15,774,000 | |
Net | 9,847,000 | 12,898,000 | |
Depreciation expense | 2,200,000 | 1,800,000 | 3,400,000 |
Assets Manufactured for Internal Use | Internal use assets | |||
Assets manufactured for internal use | |||
Cost | 24,309,000 | 23,409,000 | |
Assets Manufactured for Internal Use | Construction in process. | |||
Assets manufactured for internal use | |||
Cost | $3,465,000 | $5,263,000 |
Assets_Manufactured_for_Intern3
Assets Manufactured for Internal Use (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | 9 Months Ended | 15 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2014 |
Change in estimate of useful life of assets manufactured for internal use | |||||||||||||
Profit before tax | ($10,167) | ($16,104) | ($32,388) | ||||||||||
Net profit | 164 | -4,704 | -6,900 | 174 | 614 | -4,750 | -4,019 | -8,988 | -11,266 | -17,144 | -34,034 | ||
Assets Manufactured for Internal Use | Useful life of assets manufactured for internal use | Adjustment | |||||||||||||
Change in estimate of useful life of assets manufactured for internal use | |||||||||||||
Useful life | 5 years | 10 years | |||||||||||
Profit before tax | 300 | 100 | |||||||||||
Net profit | $300 | $100 |
Restructuring_Charges_Details
Restructuring Charges (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||||||
Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2015 | |
Changes in restructuring liability | |||||||||
Severance and related costs | $2,300,000 | $100,000 | $200,000 | $400,000 | $1,800,000 | $2,621,000 | $2,334,000 | $4,169,000 | |
Severance | |||||||||
Restructuring charges | |||||||||
Stock option modification | 100,000 | ||||||||
Changes in restructuring liability | |||||||||
Balance at the beginning of the period | 43,000 | 659,000 | 43,000 | 659,000 | 171,000 | ||||
Severance and related costs | 2,565,000 | 2,334,000 | 4,169,000 | ||||||
Cash payments | -2,127,000 | -2,950,000 | -3,551,000 | ||||||
Non-cash items | -130,000 | ||||||||
Balance at the end of the period | 481,000 | 43,000 | 659,000 | ||||||
Severance | Forecast | |||||||||
Changes in restructuring liability | |||||||||
Cash payments | ($500,000) |
Product_Warranty_Details
Product Warranty (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Product Warranty | |||
Product warranty period | 1 year | ||
Changes in product warranty liability | |||
Balance at the beginning of the period | $1,428 | $1,801 | $3,697 |
Warranties issued during the period | 1,743 | 2,240 | 3,042 |
Settlements made during the period | -2,096 | -1,515 | -3,010 |
Changes in estimate of liability for pre-existing warranties during the period | 451 | -1,098 | -1,928 |
Balance at the end of the period | 1,526 | 1,428 | 1,801 |
Product warranty classification | |||
Amount classified as current | 1,352 | 1,316 | 1,700 |
Amount classified within other long-term liabilities | 174 | 112 | 101 |
Total warranty liability | $1,526 | $1,428 | $1,801 |
Financing_Arrangements_Details
Financing Arrangements (Details) (USD $) | 3 Months Ended | 0 Months Ended | ||||
Sep. 30, 2013 | Oct. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 30, 2015 | Feb. 28, 2015 | |
Financing Arrangements | ||||||
Loan proceeds held in restricted interest reserve escrow account | $825,000 | |||||
Outstanding balance classified within current liabilities | 14,530,000 | 471,000 | ||||
Interest reserve escrow | 825,000 | |||||
Term Loan | ||||||
Financing Arrangements | ||||||
Term | 3 years | |||||
Amount of borrowings | 15,000,000 | |||||
Loan proceeds held in restricted interest reserve escrow account | 800,000 | |||||
Interest rate per annum (as a percent) | 5.50% | |||||
Early termination fee on amounts prepaid (as a percent) | 2.00% | |||||
Outstanding balance classified within current liabilities | 14,500,000 | |||||
Term Loan | Between July 5, 2014 and July 5, 2015 | ||||||
Financing Arrangements | ||||||
Early termination fee on amounts prepaid (as a percent) | 2.00% | |||||
Term Loan | Between July 5, 2015 and July 5, 2016 | ||||||
Financing Arrangements | ||||||
Early termination fee on amounts prepaid (as a percent) | 1.00% | |||||
Revolving credit facility | ||||||
Financing Arrangements | ||||||
Term | 2 years | |||||
Maximum borrowing capacity under the credit facility | 10,000,000 | |||||
Available borrowing capacity under the credit facility | 8,900,000 | |||||
Revolving credit facility | Subsequent event | ||||||
Financing Arrangements | ||||||
Reduction amount in available borrowing capacity under the credit facility | 5,900,000 | |||||
Revolving credit facility | Letter of credit | ||||||
Financing Arrangements | ||||||
Borrowings against credit facility | $1,100,000 | |||||
Revolving credit facility | Maximum | ||||||
Financing Arrangements | ||||||
Limitation on ability to borrow expressed as a percentage of the then current amount of qualified accounts receivable | 80.00% |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Regular employees | |
Defined Contribution Plan | |
Maximum contribution per employee under the Axcelis Long-Term Investment Plan (as a percent) | 35.00% |
Highly compensated employees | |
Defined Contribution Plan | |
Maximum contribution per employee under the Axcelis Long-Term Investment Plan (as a percent) | 16.00% |
Employee_Benefit_Plans_Details1
Employee Benefit Plans (Details 2) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Classification of liabilities in the Consolidated Balance Sheets | |||
Current liabilities | $837,000 | $638,000 | |
Total liabilities | 4,160,000 | 4,054,000 | |
Plan expenses | 700,000 | 600,000 | 600,000 |
Accrued compensation | |||
Classification of liabilities in the Consolidated Balance Sheets | |||
Current liabilities | 837,000 | 638,000 | |
Other long-term liabilities | |||
Classification of liabilities in the Consolidated Balance Sheets | |||
Long-term liabilities | $3,323,000 | $3,416,000 |
Stock_Award_Plans_and_Stock_Ba2
Stock Award Plans and Stock Based Compensation (Details) (USD $) | 12 Months Ended | 32 Months Ended | 36 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | 2-May-12 | |
Stock award plans and stock-based compensation | ||||||
Common stock, par value (in dollars per share) | $0.00 | $0.00 | 0.001 | 0.001 | $0.00 | |
Stock-Based Compensation Expense | ||||||
Forfeiture rate (as a percent) | 5.00% | 5.00% | 5.00% | |||
Stock-based compensation expense (in dollars) | $4,800,000 | $4,300,000 | $3,900,000 | |||
Restricted stock and restricted stock units | ||||||
Shares/units | ||||||
Outstanding at the beginning of the period (in shares) | 23,000 | |||||
Granted (in shares) | 90,000 | |||||
Vested (in shares) | -10,000 | |||||
Outstanding at the end of the period (in shares) | 103,000 | 103,000 | 103,000 | |||
Weighted-Average Grant Date Fair Value per Share | ||||||
Outstanding at the beginning of the period (in dollars per share) | $1.39 | |||||
Granted (in dollars per share) | $2.17 | |||||
Vested (in dollars per share) | $1.45 | |||||
Outstanding at the end of the period (in dollars per share) | $2.07 | 2.07 | 2.07 | |||
Stock Options | ||||||
Estimated weighted-average assumptions | ||||||
Weighted-average expected volatility (as a percent) | 98.10% | |||||
Weighted-average expected term | 4 years 8 months 12 days | |||||
Risk-free interest rate, minimum (as a percent) | 1.19% | 0.70% | 0.45% | |||
Risk-free interest rate, maximum (as a percent) | 1.67% | 1.40% | 1.37% | |||
Expected dividend yield (as a percent) | 0.00% | 0.00% | 0.00% | |||
Options | ||||||
Outstanding at the beginning of the period (in shares) | 22,299,000 | |||||
Granted (in shares) | 3,976,000 | |||||
Exercised (in shares) | -2,418,000 | |||||
Canceled (in shares) | -991,000 | |||||
Expired (in shares) | -1,162,000 | |||||
Outstanding at the end of the period (in shares) | 21,704,000 | 22,299,000 | 21,704,000 | 21,704,000 | ||
Exercisable (in shares) | 12,461,000 | 12,461,000 | 12,461,000 | |||
Options Vested or Expected to Vest at the end of the period (in shares) | 21,102,000 | 21,102,000 | 21,102,000 | |||
Weighted Average Exercise Price | ||||||
Outstanding at the beginning of the period (in dollars per share) | $1.89 | |||||
Granted (in dollars per share) | $1.81 | |||||
Exercised (in dollars per share) | $1.20 | |||||
Canceled (in dollars per share) | $1.64 | |||||
Expired (in dollars per share) | $8.28 | |||||
Outstanding at the end of the period (in dollars per share) | $1.62 | $1.89 | 1.62 | 1.62 | ||
Exercisable at the end of the period (in dollars per share) | $1.55 | 1.55 | 1.55 | |||
Options Vested or Expected to Vest at the end of the period (in dollars per share) | $1.61 | 1.61 | 1.61 | |||
Weighted Average Remaining Contractual Term | ||||||
Outstanding at the end of the period | 5 years 4 months 28 days | |||||
Exercisable at the end of the period | 5 years 1 month 2 days | |||||
Options Vested or Expected to Vest at the end of the period | 5 years 5 months 19 days | |||||
Aggregate Intrinsic Value | ||||||
Outstanding at the end of the period (in dollars) | 22,238,000 | 22,238,000 | 22,238,000 | |||
Exercisable at the end of the period (in dollars) | 14,347,000 | 14,347,000 | 14,347,000 | |||
Options Vested or Expected to Vest at the end of the period (in dollars) | 13,448,000 | 13,448,000 | 13,448,000 | |||
Additional disclosure | ||||||
Total intrinsic value of options exercised (in dollars) | 2,400,000 | 1,400,000 | 900,000 | |||
Total fair value of stock options vested (in dollars) | 4,700,000 | 3,800,000 | 4,100,000 | |||
Total forfeiture adjusted unrecognized compensation cost (in dollars) | 8,500,000 | 8,500,000 | 8,500,000 | |||
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 2 years 7 months 13 days | |||||
Stock Options | Minimum | ||||||
Estimated weighted-average assumptions | ||||||
Weighted-average expected volatility (as a percent) | 60.59% | 97.80% | ||||
Weighted-average expected term | 3 years 9 months | 3 years 9 months 18 days | ||||
Stock Options | Maximum | ||||||
Estimated weighted-average assumptions | ||||||
Weighted-average expected volatility (as a percent) | 98.40% | 113.55% | ||||
Weighted-average expected term | 4 years 8 months 16 days | 6 years 1 month 6 days | ||||
Stock Options | Employees | ||||||
Stock award plans and stock-based compensation | ||||||
Vesting period | 4 years | |||||
Period after termination to exercise awards that were vested | 90 days | |||||
Period after termination to retiring employees to exercise vested awards | 1 year | |||||
Stock Options | Non-employee members of Board of Directors | ||||||
Stock award plans and stock-based compensation | ||||||
Vesting period | 6 months | |||||
Restricted Stock | ||||||
Shares/units | ||||||
Granted (in shares) | 0 | |||||
Vested (in shares) | 0 | |||||
2000 Stock Plan | ||||||
Stock award plans and stock-based compensation | ||||||
Awards granted (in shares) | 0 | |||||
Number of shares of common stock available for future grant | 0 | 0 | 0 | |||
2000 Stock Plan | Stock Options | ||||||
Stock award plans and stock-based compensation | ||||||
Expiration period | 10 years | |||||
Employee stock purchase plan | ||||||
Stock award plans and stock-based compensation | ||||||
Number of shares of common stock available for future grant | 1,600,000 | 1,600,000 | 1,600,000 | |||
Employee Stock Purchase Plan | ||||||
Purchase price as a percentage of the market value of a common stock on the day the stock is purchased | 85.00% | |||||
Offering period over which compensation expense is amortized | 6 months | |||||
Number of shares purchased under the plan | 200,000 | 200,000 | 300,000 | |||
Stock-Based Compensation Expense | ||||||
Stock-based compensation expense (in dollars) | $100,000 | $100,000 | $100,000 | |||
Employee stock purchase plan | Maximum | ||||||
Employee Stock Purchase Plan | ||||||
Payroll deductions as a percentage of employee's salary | 10.00% | |||||
2012 Equity Incentive Plan | ||||||
Stock award plans and stock-based compensation | ||||||
Number of shares of common stock originally reserved for future grant | 7,100,000 | |||||
Number of shares of common stock available for future grant | 2,800,000 | 2,800,000 | 2,800,000 | |||
Estimated weighted-average assumptions | ||||||
Weighted-average expected term | 7 years | |||||
2012 Equity Incentive Plan | Stock Options | ||||||
Stock award plans and stock-based compensation | ||||||
Expiration period | 7 years | |||||
2012 Equity Incentive Plan | Restricted Stock | ||||||
Shares/units | ||||||
Granted (in shares) | 0 |
Stockholders_Equity_Details
Stockholders' Equity (Details) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Stockholders' Equity | ||
Number of shares of preferred stock that the entity is authorized to issue | 30,000 | 30,000 |
Preferred stock, shares outstanding | 0 | 0 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (Recurring, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Total | Term Loan | ||
Fair Value Measurements | ||
Term loan | $14,530 | $15,000 |
Total | Money market funds | ||
Fair Value Measurements | ||
Money market funds | 7,004 | 10,504 |
Level 1 | Money market funds | ||
Fair Value Measurements | ||
Money market funds | 7,004 | 10,504 |
Level 2 | Term Loan | ||
Fair Value Measurements | ||
Term loan | $14,530 | $15,000 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Lease Commitments | |||
Rental expense under operating leases | $3,700,000 | $4,000,000 | $4,300,000 |
Future minimum lease commitments on non-cancelable operating leases | |||
2015 | 2,543,000 | ||
2016 | 1,280,000 | ||
2017 | 607,000 | ||
2018 | 259,000 | ||
2019 | 222,000 | ||
Thereafter | 222,000 | ||
Total | 5,133,000 | ||
Purchase Commitments | |||
Non-cancelable contracts and purchase orders for inventory | $34,300,000 |
Business_Segment_and_Geographi2
Business Segment and Geographic Region Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
item | |||||||||||
Business Segment and Geographic Region Information | |||||||||||
Number of business segments | 1 | ||||||||||
Revenue by product lines | |||||||||||
Revenue | $62,530 | $38,531 | $41,150 | $60,840 | $58,574 | $48,831 | $47,501 | $40,726 | $203,051 | $195,632 | $203,385 |
Ion implantation systems, services, and royalties | |||||||||||
Revenue by product lines | |||||||||||
Revenue | 183,148 | 164,030 | 156,090 | ||||||||
Other systems and services | |||||||||||
Revenue by product lines | |||||||||||
Revenue | $19,903 | $31,602 | $47,295 |
Business_Segment_and_Geographi3
Business Segment and Geographic Region Information (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue and long-lived assets by geographic region | |||||||||||
Revenue | $62,530 | $38,531 | $41,150 | $60,840 | $58,574 | $48,831 | $47,501 | $40,726 | $203,051 | $195,632 | $203,385 |
Long-Lived Assets | 40,300 | 44,904 | 40,300 | 44,904 | 44,192 | ||||||
United States. | |||||||||||
Revenue and long-lived assets by geographic region | |||||||||||
Revenue | 126,255 | 116,969 | 132,159 | ||||||||
Long-Lived Assets | 40,001 | 44,424 | 40,001 | 44,424 | 43,440 | ||||||
Europe | |||||||||||
Revenue and long-lived assets by geographic region | |||||||||||
Revenue | 29,140 | 27,933 | 27,636 | ||||||||
Asia Pacific | |||||||||||
Revenue and long-lived assets by geographic region | |||||||||||
Revenue | 47,656 | 50,730 | 43,590 | ||||||||
Long-Lived Assets | 299 | 480 | 299 | 480 | 752 | ||||||
International | Revenue | Geographic concentration risk | |||||||||||
Revenue and long-lived assets by geographic region | |||||||||||
Revenue | $162,400 | $149,400 | $142,800 | ||||||||
Percentage of revenue | 80.00% | 76.40% | 70.20% |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income (loss) before income taxes | |||
United States | ($11,987,000) | ($18,998,000) | ($37,682,000) |
Foreign | 1,820,000 | 2,894,000 | 5,294,000 |
Loss before income taxes | -10,167,000 | -16,104,000 | -32,388,000 |
Current: | |||
State | 59,000 | 84,000 | 82,000 |
Foreign | 780,000 | 641,000 | 738,000 |
Total current | 839,000 | 725,000 | 820,000 |
Deferred: | |||
Foreign | 260,000 | 315,000 | 826,000 |
Total deferred | 260,000 | 315,000 | 826,000 |
Income tax provision | 1,099,000 | 1,040,000 | 1,646,000 |
Reconciliations of income taxes at the United States Federal statutory rate to the effective income tax rate | |||
Income tax benefit at the United States statutory rate | -3,558,000 | -5,636,000 | -11,336,000 |
State income taxes | 38,000 | 55,000 | 53,000 |
Unrecognized tax benefits | 184,000 | -293,000 | -832,000 |
Effect of change in valuation allowance | -6,835,000 | 5,975,000 | 12,662,000 |
Foreign income tax rate differentials | 259,000 | -1,244,000 | -788,000 |
Unremitted earnings of foreign subsidiaries | -758,000 | 961,000 | |
Foreign dividend | 383,000 | ||
Stock options | 686,000 | 450,000 | 1,298,000 |
Deemed distribution from foreign subsidiaries | 607,000 | 316,000 | 149,000 |
Discrete items, net | 9,143,000 | ||
Other, net | 1,333,000 | 456,000 | 57,000 |
Income tax provision | 1,099,000 | 1,040,000 | 1,646,000 |
Significant components of current deferred income taxes | |||
Accrued compensation | 65,000 | 43,000 | |
Inventories | 9,808,000 | 16,540,000 | |
Warranty | 486,000 | 591,000 | |
Other | 1,620,000 | 2,671,000 | |
Deferred taxes, gross | 11,979,000 | 19,845,000 | |
Valuation allowance | -10,975,000 | -18,059,000 | |
Deferred taxes, net | 1,004,000 | 1,786,000 | |
Significant components of long-term deferred income taxes | |||
Federal net operating loss carryforwards | 105,119,000 | 104,370,000 | |
State net operating loss carryforwards | 2,210,000 | 2,250,000 | |
Foreign net operating loss carryforwards | 1,280,000 | 1,421,000 | |
Unremitted earnings of foreign subsidiaries | -8,800,000 | -9,661,000 | |
Intangible assets | 383,000 | 532,000 | |
Property, plant and equipment | 4,548,000 | 4,796,000 | |
Stock compensation | 5,198,000 | 4,896,000 | |
Warranty | -56,000 | ||
Other | -2,328,000 | -2,406,000 | |
Deferred taxes, gross | 129,572,000 | 129,499,000 | |
Valuation allowance | -128,982,000 | -129,409,000 | |
Deferred taxes, net | 590,000 | 90,000 | |
Deferred tax assets | 141,600,000 | ||
United States | |||
Tax credit carryforwards | |||
Tax credit carryforwards | 16,669,000 | 17,814,000 | |
State | |||
Tax credit carryforwards | |||
Tax credit carryforwards | $5,293,000 | $5,543,000 |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Income Taxes | |
Deferred tax assets, net of valuation allowance | 0 |
United States | |
Valuation allowance | |
Period of cumulative loss position | 3 years |
Percentage of valuation allowance | 100.00% |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Federal and state | |
Operating loss carryforwards | |
Net operating loss carryforwards | $346.90 |
Foreign | |
Operating loss carryforwards | |
Net operating loss carryforwards | $4.30 |
Income_Taxes_Details_4
Income Taxes (Details 4) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Tax credit carryforwards | |||
Interest and penalty expense recognized related to unrecognized tax benefits | $200,000 | $200,000 | $200,000 |
Reconciliation of the beginning and ending balance of unrecognized tax benefits | |||
Balance at beginning of year | 7,645,000 | 7,719,000 | |
Increases in unrecognized tax benefits as a result of tax positions taken during a prior period | 92,000 | 324,000 | |
Increases in unrecognized tax benefits as a result of tax positions taken during the current period | 223,000 | ||
Reductions to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations | -398,000 | ||
Balance at end of year | 7,960,000 | 7,645,000 | 7,719,000 |
Recorded as other long-term liability | 2,328,000 | 2,343,000 | |
Recorded as a decrease in deferred tax assets and offsetting valuation allowance | 5,632,000 | 5,302,000 | |
Unrecognized tax benefits | 7,960,000 | 7,645,000 | 7,719,000 |
Research and development and other tax credit carryforwards | |||
Tax credit carryforwards | |||
Tax credit carryforwards | 18,100,000 | ||
Foreign | |||
Tax credit carryforwards | |||
Tax credit carryforwards | $3,900,000 |
Quarterly_Results_of_Operation2
Quarterly Results of Operations (unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Quarterly Results of Operations (unaudited) | |||||||||||
Revenue | $62,530,000 | $38,531,000 | $41,150,000 | $60,840,000 | $58,574,000 | $48,831,000 | $47,501,000 | $40,726,000 | $203,051,000 | $195,632,000 | $203,385,000 |
Gross profit | 18,796,000 | 15,144,000 | 14,484,000 | 21,740,000 | 21,280,000 | 16,976,000 | 16,737,000 | 12,943,000 | 70,164,000 | 67,935,000 | 58,171,000 |
Net loss | 164,000 | -4,704,000 | -6,900,000 | 174,000 | 614,000 | -4,750,000 | -4,019,000 | -8,988,000 | -11,266,000 | -17,144,000 | -34,034,000 |
Net income (loss) per share basic and diluted (in dollars per share) | $0 | ($0.04) | ($0.06) | $0 | $0.01 | ($0.04) | ($0.04) | ($0.08) | |||
Quarterly charges and expenses | |||||||||||
Inventory reserves | 800,000 | 800,000 | 200,000 | 800,000 | |||||||
Restructuring charges | 2,300,000 | 100,000 | 200,000 | 400,000 | 1,800,000 | 2,621,000 | 2,334,000 | 4,169,000 | |||
Income related to an uncertain tax position in a certain foreign jurisdiction | 400,000 | ||||||||||
Write off of deferred tax assets in foreign jurisdictions | 400,000 | ||||||||||
Gain on sale of dry strip assets and intellectual property | 1,167,000 | 7,904,000 | |||||||||
Charges to cost of sales relating to inventory | 2,100,000 | 1,817,000 | 2,562,000 | 14,492,000 | |||||||
Dry strip assets and intellectual property | |||||||||||
Quarterly charges and expenses | |||||||||||
Gain on sale of dry strip assets and intellectual property | $800,000 | $400,000 | $1,200,000 | $7,900,000 |
Subsequent_Event_Details
Subsequent Event (Details) (USD $) | 0 Months Ended | |
In Millions, unless otherwise specified | Mar. 05, 2015 | Jan. 30, 2015 |
Subsequent events | ||
Period of separation pay in event of termination without cause | 12 months | |
Term Loan | ||
Subsequent events | ||
Repayment of debt | $14.50 | |
Early termination fee on amounts prepaid (as a percent) | 2.00% | |
Subsequent event | Sale and leaseback | Beverly Property Owner LLC | Buildings | ||
Subsequent events | ||
Purchase price | 49 | |
Lease term | 22 years | |
Lease payment, first year | 4.7 | |
Security deposit in the form of irrevocable letter of credit | 5.9 | |
Financing obligation | 49 | |
Net proceeds from sale leaseback transaction | $33.10 |
Schedule_II_Valuation_and_Qual
Schedule II Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for doubtful accounts and returns | |||
Changes in Valuation and Qualifying Accounts | |||
Balance at Beginning of Period | $404 | $305 | $411 |
Charged to Costs and Expenses | 96 | ||
Deductions | -112 | ||
Other | -14 | 3 | 6 |
Balance at End of Period | 390 | 404 | 305 |
Inventory reserves | |||
Changes in Valuation and Qualifying Accounts | |||
Balance at Beginning of Period | 25,091 | 33,601 | 22,778 |
Charged to Costs and Expenses | 1,003 | 2,562 | 14,492 |
Deductions | -2,452 | -10,913 | -4,819 |
Other | -159 | 1,150 | |
Balance at End of Period | $23,642 | $25,091 | $33,601 |