Axcelis (ACLS) 10-Q 5 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 02, 2016
Document and Entity Information
Entity Registrant Name	AXCELIS TECHNOLOGIES INC
Entity Central Index Key	1,113,232
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		116,341,664
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenue
Product	$ 62,175	$ 67,530
Services	5,346	5,753
Total revenue	67,521	73,283
Cost of revenue
Product	40,263	45,185
Services	3,842	4,718
Total cost of revenue	44,105	49,903
Gross profit	23,416	23,380
Operating expenses
Research and development	8,636	8,199
Sales and marketing	5,960	5,628
General and administrative	6,042	6,101
Restructuring charges	282	10
Total operating expenses	20,920	19,938
Income from operations	2,496	3,442
Other (expense) income
Interest income	54	3
Interest expense	(1,047)	(1,043)
Other, net	(59)	(433)
Total other (expense) income	(1,052)	(1,473)
Income before income taxes	1,444	1,969
Income tax (benefit) provision	(504)	101
Net income	$ 1,948	$ 1,868
Net earnings per share
Basic (in dollars per share)	$ 0.02	$ 0.02
Diluted (in dollars per share)	$ 0.02	$ 0.02
Shares used in computing net earnings per share
Basic weighted average common shares	116,152	113,152
Diluted weighted average common shares	122,078	118,720

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Consolidated Statements of Comprehensive Income
Net income	$ 1,948	$ 1,868
Other comprehensive income (loss):
Foreign currency translation adjustments	1,049	(1,010)
Amortization of actuarial losses from pension plan	(26)	(19)
Net current-period other comprehensive income (loss)	1,075	(991)
Comprehensive income	$ 3,023	$ 877

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current assets
Cash and cash equivalents	$ 67,571	$ 78,889
Accounts receivable, net	47,471	36,868
Inventories, net	115,165	115,904
Prepaid expenses and other current assets	6,106	4,792
Total current assets	236,313	236,453
Property, plant and equipment, net	30,997	30,031
Long-term restricted cash	6,863	6,936
Other assets	19,161	14,860
Total assets	293,334	288,280
Current liabilities
Accounts payable	21,700	19,849
Accrued compensation	8,477	9,059
Warranty	3,288	3,363
Income taxes	177	143
Deferred revenue	8,119	7,863
Other current liabilities	4,153	4,091
Total current liabilities	45,914	44,368
Sale leaseback obligation	47,586	47,586
Long-term deferred revenue	667	679
Other long-term liabilities	4,852	5,387
Total liabilities	$ 99,019	$ 98,020
Commitments and contingencies (Note 12)
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; 116,357 shares issued and 116,237 shares outstanding at March 31, 2016; 116,101 shares issued and 115,981 shares outstanding at December 31, 2015	$ 116	$ 116
Additional paid-in capital	530,034	529,002
Treasury stock, at cost, 120 shares at March 31, 2016 and December 31, 2015	(1,218)	(1,218)
Accumulated deficit	(334,261)	(336,209)
Accumulated other comprehensive loss	(356)	(1,431)
Total stockholders' equity	194,315	190,260
Total liabilities and stockholders' equity	$ 293,334	$ 288,280

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Mar. 31, 2016	Dec. 31, 2015
Consolidated Balance Sheets
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
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)	$ 0.001	$ 0.001
Common stock, shares authorized	300,000	300,000
Common stock, shares issued	116,357	116,101
Common stock, shares outstanding	116,237	115,981
Treasury stock, shares	120	120

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities
Net income	$ 1,948	$ 1,868
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization	918	1,142
Deferred taxes	(50)	134
Stock-based compensation expense	838	1,126
Provision for excess inventory	549	242
Changes in operating assets & liabilities
Accounts receivable	(10,287)	(355)
Inventories	1,143	(6,963)
Prepaid expenses and other current assets	(1,216)	(1,085)
Accounts payable and other current liabilities	1,082	11,466
Deferred revenue	226	1,455
Income taxes	30	132
Other assets and liabilities	(5,364)	(422)
Net cash (used in) provided by operating activities	(10,183)	8,740
Cash flows used in investing activities
Expenditures for property, plant, and equipment	(1,275)	(320)
Net cash used in investing activities	(1,275)	(320)
Cash flows from financing activities
Decrease in restricted cash	73	758
Financing fees and other expenses		(847)
Principal payments on term loan		(14,530)
Principal payments on sale leaseback obligation		(392)
Proceeds from sale leaseback obligation		48,940
Proceeds from exercise of stock options	194	937
Net cash provided by financing activities	267	34,866
Effect of exchange rate changes on cash	(127)	509
Net (decrease) increase in cash and cash equivalents	(11,318)	43,795
Cash and cash equivalents at beginning of period	78,889	30,753
Cash and cash equivalents at end of period	67,571	74,548
Supplemental disclosure of total cash, cash equivalents and restricted cash:
Cash and cash equivalents at end of period	67,571	74,548
Restricted cash at end of period	6,863	67
Total cash, cash equivalents and restricted cash at end of year	$ 74,434	$ 74,615

Nature of Business

Nature of Business	3 Months Ended
	Mar. 31, 2016
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. The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments which are of a normal recurring nature and considered necessary for a fair presentation of these financial statements have been included. Operating results for the interim periods presented are not necessarily indicative of the results that may be expected for other interim periods or for the year as a whole. The balance sheet at December 31, 2015 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in Axcelis Technologies, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2015.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2016
Stock-Based Compensation
Stock-Based Compensation	Note 2. Stock-Based Compensation The Company maintains the Axcelis Technologies, Inc. 2012 Equity Incentive Plan (the “2012 Equity Plan”), which became effective on May 2, 2012, and permits the issuance of options, restricted stock, restricted stock units and performance awards to selected employees, directors and consultants of the Company. The Company’s 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, unexpired awards granted under the 2000 Stock Plan prior to the expiration remain outstanding and subject to the terms of the 2000 Stock Plan. The Company also maintains the Axcelis Technologies, Inc. Employee Stock Purchase Plan (the “ESPP”), an Internal Revenue Code Section 423 plan. The 2012 Equity Plan and the ESPP are more fully described in Note 14 to the consolidated financial statements in the Company’s 2015 Annual Report on Form 10-K. The Company recognized stock-based compensation expense of $0.8 million and $1.1 million for the three months ended March 31, 2016 and 2015, respectively. These amounts include compensation expense related to restricted stock units and non-qualified stock options.

Computation of Net Earnings per

Computation of Net Earnings per Share	3 Months Ended
	Mar. 31, 2016
Computation of Net Earnings per Share
Computation of Net Earnings per Share	Note 3. Computation of Net Earnings per Share Basic earnings per share is computed by dividing net 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 components of net earnings per share are as follows: Three months ended March 31, 2016 2015 (in thousands, except per share data) Net income available to common stockholders $ $ Weighted average common shares outstanding used in computing basic net earnings per share Incremental options and RSUs Weighted average common shares outstanding used in computing diluted net earnings per share Net earnings per share Basic $ $ Diluted $ $

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	3 Months Ended
	Mar. 31, 2016
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss)	Note 4. Accumulated Other Comprehensive Income (Loss) The following table displays the changes in accumulated other comprehensive income (loss), by component for the three months ended March 31, 2016: Foreign currency Defined benefit pension plan Total (in thousands) Balance at December 31, 2015 $ ) $ ) $ ) Other comprehensive income and pension reclassification (1) Balance at March 31, 2016 $ $ ) $ ) (1) Pension reclassification presented before taxes as the tax effect was not material to the consolidated financial statements.

Inventories, net

Inventories, net	3 Months Ended
	Mar. 31, 2016
Inventories, net
Inventories, net	Note 5. Inventories, net The components of inventories are as follows: March 31, December 31, 2016 2015 (in thousands) Raw materials $ $ Work in process Finished goods (completed systems) $ $ 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. As of March 31, 2016 and December 31, 2015, inventories are stated net of inventory reserves of $9.8 million and $10.5 million respectively.

Product Warranty

Product Warranty	3 Months Ended
	Mar. 31, 2016
Product Warranty
Product Warranty	Note 6. 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: Three months ended March 31, 2016 2015 (in thousands) Balance at January 1 (beginning of year) $ $ Warranties issued during the period Settlements made during the period ) ) Changes in estimate of liability for pre-existing warranties during the period Balance at March 31 (end of period) $ $ Amount classified as current $ $ Amount classified within other long-term liabilities Total warranty liability $ $

Restructuring Charges

Restructuring Charges	3 Months Ended
	Mar. 31, 2016
Restructuring Charges.
Restructuring Charges	Note 7. Restructuring Charges In the three months ended March 31, 2016, due to changes in customer service contracts resulting from a consolidation in our customer base, the Company had severance and other costs related to a reduction in force. The related activity is as follows: (in thousands) Balance at December 31, 2015 $ — Severance and related costs Other adjustments — Cash payments — Balance at March 31, 2016 $

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2016
Fair Value Measurements
Fair Value Measurements	Note 8. Fair Value Measurements Certain of the assets and liabilities on the Company’s balance sheets are reported at their “fair value”. 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) Fair Value Measurements The Company’s money market accounts 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 sale leaseback obligation relating to the sale of our corporate headquarters is carried at amortized cost, which approximates fair value based on an implied borrowing rate of 10.65%. The underlying cash flow associated with our lease payments is being applied to both an interest and principal component using the effective interest method over the associated lease term. The liability is categorized as level 3 within the fair value hierarchy. The following table sets forth the Company’s assets and liabilities by level within the fair value hierarchy: March 31, 2016 Fair Value Measurements Level 1 Level 2 Level 3 Total (in thousands) Assets Cash equivalents: Money market accounts $ $ — $ — $ Liabilities Sale leaseback obligation $ — $ — $ $ December 31, 2015 Fair Value Measurements Level 1 Level 2 Level 3 Total (in thousands) Assets Cash equivalents: Money market accounts $ $ — $ — $ Liabilities Sale leaseback obligation $ — $ — $ $ (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, accounts payable and accrued expenses approximate fair value due to their short-term maturities.

Financing Arrangements

Financing Arrangements	3 Months Ended
	Mar. 31, 2016
Financing Arrangements
Financing Arrangements	Note 9. Financing Arrangements Sale Leaseback Obligation On January 30, 2015, the Company sold its corporate headquarters facility to Beverly Property Owner LLC, an affiliate of Middleton Partners, based in Northbrook, Illinois, for the purchase price of $48.9 million. As part of the sale, the Company also entered into a 22-year lease agreement with Beverly Properties. The sale leaseback is accounted for as a financing arrangement for financial reporting and, as such, the Company has recorded a financing obligation of $47.6 million as of March 31, 2016. The associated lease payments include both an interest component and payment of principal, with the underlying liability being extinguished at the end of the original lease term. The Company posted a collateralized security deposit of $5.9 million in the form of an irrevocable letter of credit at the time of the closing. This letter of credit is cash collateralized and is classified as restricted cash as of March 31, 2016.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2016
Income Taxes
Income Taxes	Note 10. Income Taxes Income tax expense relates principally to operating results of foreign entities in jurisdictions, primarily in Europe and Asia, where the Company earns taxable income. The Company has significant net operating losses in the United States and certain other tax jurisdictions and, as a result, does not pay significant income taxes in those jurisdictions. At December 31, 2015, the Company had $124.2 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. The Company maintains a 100% domestic valuation allowance reducing the carrying value of the deferred tax assets in the United States to zero. The Company will continue to maintain a full valuation allowance for those tax assets until sustainable future levels of profitability are evident. During the first quarter of 2016, the statute of limitations associated with a tax position previously taken by the Company expired. This previously recorded tax reserve of $0.6 million and related accrued interest of $0.3 million was reversed during the three months ended March 31, 2016.

Concentration of Risk

Concentration of Risk	3 Months Ended
	Mar. 31, 2016
Concentration of Risk
Concentration of Risk	Note 11. Concentration of Risk For the three months ended March 31, 2016, three customers accounted for approximately 20.8%, 13.4% and 13.2% of consolidated revenue, respectively. For the three months ended March 31, 2015, one customer accounted for approximately 36.5% of consolidated revenue. At March 31, 2016, two customers accounted for 20.4% and 10.3% of consolidated gross accounts receivable, respectively. As of December 31, 2015, three customers accounted for 22.9%, 12.7% and 11.6% of consolidated accounts receivable, respectively .

Contingencies

Contingencies	3 Months Ended
	Mar. 31, 2016
Contingencies
Contingencies	Note 12. Contingencies (a) Litigation The Company is, from time to time, a party to litigation that arises in the normal course of its business operations. The Company is not presently a party to any litigation that it believes might have a material adverse effect on its business operations. (b) 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.

Recent Accounting Guidance

Recent Accounting Guidance	3 Months Ended
	Mar. 31, 2016
Recent Accounting Guidance
Recent Accounting Guidance	Note 13. Recent Accounting Guidance Accounting Standards or Updates Not Yet Effective In May 2014, the 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. On July 9, 2015, the FASB voted to defer for one year the effective date, which is now for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period with early adoption permitted as of January 1, 2017. In April 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers (Topic 606)” which further clarifies performance obligations in a contract with a customer. The effective date of this ASU is for annual reporting periods beginning after December 15, 2017. We are currently assessing the potential impact the adoption of these standards will have on our financial statements. In July 2015, the FASB issued ASU No. 2015-11, “Simplifying the Measurement of Inventory,” which changes the inventory measurement principles for entities using the first-in, first-out (FIFO) or average cost methods. For entities utilizing one of these methods, the inventory measurement principle will change from lower of cost or market to the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less the reasonably predictable costs of completion, disposal and transportation. The amendments are effective for annual and interim periods beginning after December 15, 2016. We are currently assessing the potential impact the adoption of this standard will have on our financial statements. In November 2015, the FASB issued ASU No. 2015-17, “ Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes.” The amendments in this Update require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The amendments in this Update apply to all entities that present a classified statement of financial position. For public business entities, the amendments in this Update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. We are currently assessing the potential impact the adoption of this standard will have on our financial statements. In February 2016, the FASB issued ASU No. 2016-02 “Leases” . The ASU requires lessees to recognize the assets and liabilities on their balance sheet for the rights and obligations created by most leases and continue to recognize expenses on their income statement over the lease term. It will also require disclosures designed to give financial statement users information on the amount, timing, and uncertainty of cash flows arising from leases. The guidance is effective for annual reporting periods beginning after December 15, 2018, and interim periods within those years. Early adoption is permitted for all entities. We are currently evaluating the impact of ASU 2016-02 on the consolidated financial statements and disclosures. In March 2016, the FASB issued ASU No. 2016-09 “Compensation — Stock Compensation” , which changes the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. For public business entities, the amendments in this Update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for all entities and any entity that elects early adoption must adopt all of the amendments in the same period. We are currently evaluating the impact of ASU 2016-09 on the consolidated financial statements and disclosures.

Computation of Net Earnings p20

Computation of Net Earnings per Share (Tables)	3 Months Ended
	Mar. 31, 2016
Computation of Net Earnings per Share
Schedule of components of net loss per share	Three months ended March 31, 2016 2015 (in thousands, except per share data) Net income available to common stockholders $ $ Weighted average common shares outstanding used in computing basic net earnings per share Incremental options and RSUs Weighted average common shares outstanding used in computing diluted net earnings per share Net earnings per share Basic $ $ Diluted $ $

Accumulated Other Comprehensi21

Accumulated Other Comprehensive Income (Loss) (Tables)	3 Months Ended
	Mar. 31, 2016
Accumulated Other Comprehensive Income (Loss)
Schedule of changes in accumulated other comprehensive income (loss), net of tax	Foreign currency Defined benefit pension plan Total (in thousands) Balance at December 31, 2015 $ ) $ ) $ ) Other comprehensive income and pension reclassification (1) Balance at March 31, 2016 $ $ ) $ ) (1) Pension reclassification presented before taxes as the tax effect was not material to the consolidated financial statements.

Inventories, net (Tables)

Inventories, net (Tables)	3 Months Ended
	Mar. 31, 2016
Inventories, net
Schedule of components of inventories	March 31, December 31, 2016 2015 (in thousands) Raw materials $ $ Work in process Finished goods (completed systems) $ $

Product Warranty (Tables)

Product Warranty (Tables)	3 Months Ended
	Mar. 31, 2016
Product Warranty
Schedule of standard product warranty liability	Three months ended March 31, 2016 2015 (in thousands) Balance at January 1 (beginning of year) $ $ Warranties issued during the period Settlements made during the period ) ) Changes in estimate of liability for pre-existing warranties during the period Balance at March 31 (end of period) $ $ Amount classified as current $ $ Amount classified within other long-term liabilities Total warranty liability $ $

Restructuring Charges (Tables)

Restructuring Charges (Tables)	3 Months Ended
	Mar. 31, 2016
Restructuring Charges.
Schedule of changes in restructuring liability	(in thousands) Balance at December 31, 2015 $ — Severance and related costs Other adjustments — Cash payments — Balance at March 31, 2016 $

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2016
Fair Value Measurements
Schedule of Company's assets and liabilities by level within the fair value hierarchy	March 31, 2016 Fair Value Measurements Level 1 Level 2 Level 3 Total (in thousands) Assets Cash equivalents: Money market accounts $ $ — $ — $ Liabilities Sale leaseback obligation $ — $ — $ $ December 31, 2015 Fair Value Measurements Level 1 Level 2 Level 3 Total (in thousands) Assets Cash equivalents: Money market accounts $ $ — $ — $ Liabilities Sale leaseback obligation $ — $ — $ $

Stock-Based Compensation - (Det

Stock-Based Compensation - (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Stock-based compensation
Stock-based compensation expense	$ 0.8	$ 1.1
2000 Stock Plan
Stock-based compensation
Number of shares of common stock available for future grant	0

Computation of Net Earnings p27

Computation of Net Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Computation of Net Earnings per Share
Net income available to common stockholders	$ 1,948	$ 1,868
Weighted average common shares outstanding used in computing basic net earnings per share	116,152	113,152
Incremental options and RSUs	5,926	5,568
Weighted average common shares outstanding used in computing diluted net earnings per share	122,078	118,720
Net earnings per share
Basic	$ 0.02	$ 0.02
Diluted	$ 0.02	$ 0.02

Accumulated Other Comprehensi28

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Changes in accumulated other comprehensive income, net of tax
Balance at the beginning of period	$ (1,431)
Other comprehensive income and pension reclassification	1,075	$ (991)
Balance at the end of period	(356)
Foreign currency
Changes in accumulated other comprehensive income, net of tax
Balance at the beginning of period	(744)
Other comprehensive income and pension reclassification	1,049
Balance at the end of period	305
Defined benefit pension plan
Changes in accumulated other comprehensive income, net of tax
Balance at the beginning of period	(687)
Other comprehensive income and pension reclassification	26
Balance at the end of period	$ (661)

Inventories, net (Details)

Inventories, net (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Inventories, net
Raw materials	$ 79,695	$ 78,566
Work in process	28,047	29,219
Finished goods (completed systems)	7,423	8,119
Inventories, net	115,165	115,904
Inventory reserves	$ 9,800	$ 10,500

Product Warranty (Details)

Product Warranty (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015
Product Warranty
Product warranty period	1 year
Changes in standard product warranty liability
Balance at the beginning of the period	$ 3,555	$ 1,526
Warranties issued during the period	921	1,080
Settlements made during the period	(1,306)	(566)
Changes in estimate of liability for pre-existing warranties during the period	365	123
Balance at the end of the period	3,535	2,163
Product warranty classification
Amount classified as current			$ 3,288	$ 3,363	$ 1,909
Amount classified within other long-term liabilities			247		254
Total warranty liability	$ 3,555	$ 1,526	$ 3,535	$ 3,555	$ 2,163

Restructuring Charges (Details)

Restructuring Charges (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Changes in restructuring liability
Severance and related costs	$ 282	$ 10
Severance
Changes in restructuring liability
Severance and related costs	282
Balance at the end of the period	$ 282

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	14 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Sale leaseback obligation
Fair Value Measurements
Implicit interest rate on associated cash flows	10.65%
Recurring | Total | Sale leaseback obligation
Fair Value Measurements
Sale leaseback obligation	$ 47,586	$ 47,586
Recurring | Money market accounts | Total
Fair Value Measurements
Money market funds	51,279	65,327
Recurring | Level 1 | Money market accounts
Fair Value Measurements
Money market funds	51,279	65,327
Recurring | Level 3 | Sale leaseback obligation
Fair Value Measurements
Sale leaseback obligation	$ 47,586	$ 47,586

Financing Arrangements (Details

Financing Arrangements (Details) - USD ($) $ in Thousands	Jan. 30, 2015	Mar. 31, 2016	Dec. 31, 2015
Financing Arrangements
Sale leaseback obligation		$ 47,586	$ 47,586
Beverly Property Owner LLC | Sale leaseback obligation | Buildings
Financing Arrangements
Purchase price	$ 48,900
Lease term	22 years
Sale leaseback obligation		$ 47,600
Security deposit	$ 5,900

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Income Taxes
Deferred tax assets valuation allowance		$ 124.2
Percentage of valuation allowance	100.00%
Deferred tax assets, net of valuation allowance	$ 0
Previously recorded tax reserve	(0.6)
Accrued interest	$ (0.3)

Concentration of Risk (Details)

Concentration of Risk (Details) - item	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Revenue | Customer concentration risk
Concentration of risk
Number of customers	3	1
Revenue | Customer concentration risk | One customer
Concentration of risk
Percentage of concentration risk	20.80%	36.50%
Revenue | Customer concentration risk | Second customer
Concentration of risk
Percentage of concentration risk	13.40%
Revenue | Customer concentration risk | Third customer
Concentration of risk
Percentage of concentration risk	13.20%
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	20.40%		22.90%
Consolidated accounts receivable | Credit concentration risk | Second customer
Concentration of risk
Percentage of concentration risk	10.30%		12.70%
Consolidated accounts receivable | Credit concentration risk | Third customer
Concentration of risk
Percentage of concentration risk			11.60%