Axcelis (ACLS) 10-Q 7 Nov 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Nov. 05, 2019
Document and Entity Information
Document Type	10-Q
Document Period End Date	Sep. 30, 2019
Entity Registrant Name	AXCELIS TECHNOLOGIES INC
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		32,421,139
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001113232
Amendment Flag	false

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenue:
Revenue	$ 69,453	$ 95,374	$ 235,235	$ 336,892
Cost of revenue:
Cost of revenue	38,872	55,461	135,399	200,823
Gross profit	30,581	39,913	99,836	136,069
Operating expenses:
Research and development	12,930	12,845	40,335	37,631
Sales and marketing	8,057	7,923	25,411	25,246
General and administrative	7,707	8,477	23,097	24,755
Total operating expenses	28,694	29,245	88,843	87,632
Income from operations	1,887	10,668	10,993	48,437
Other (expense) income:
Interest income	687	593	2,373	1,518
Interest expense	(1,308)	(1,323)	(3,849)	(3,787)
Other, net	(890)	(592)	(1,252)	(1,710)
Total other expense	(1,511)	(1,322)	(2,728)	(3,979)
Income before income taxes	376	9,346	8,265	44,458
Income tax (benefit) provision	(328)	508	943	7,036
Net income	$ 704	$ 8,838	$ 7,322	$ 37,422
Net income per share:
Basic (in dollars per share)	$ 0.02	$ 0.27	$ 0.22	$ 1.16
Diluted (in dollars per share)	$ 0.02	$ 0.26	$ 0.22	$ 1.10
Shares used in computing net income per share:
Basic weighted average common shares	32,344	32,365	32,584	32,225
Diluted weighted average common shares	33,323	33,973	33,821	34,032
Product
Revenue:
Revenue	$ 64,290	$ 88,496	$ 217,201	$ 317,039
Cost of revenue:
Cost of revenue	33,587	49,136	118,105	181,423
Services
Revenue:
Revenue	5,163	6,878	18,034	19,853
Cost of revenue:
Cost of revenue	$ 5,285	$ 6,325	$ 17,294	$ 19,400

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Consolidated Statements of Comprehensive Income
Net income	$ 704	$ 8,838	$ 7,322	$ 37,422
Other comprehensive (loss):
Foreign currency translation adjustments	(1,132)	(284)	(1,847)	(1,584)
Amortization of actuarial loss and other adjustments from pension plan	29	30	89	90
Total other comprehensive (loss)	(1,103)	(254)	(1,758)	(1,494)
Comprehensive (loss) income	$ (399)	$ 8,584	$ 5,564	$ 35,928

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 155,317	$ 177,993
Short-term restricted cash	149
Accounts receivable, net	49,046	78,727
Inventories, net	138,353	129,000
Prepaid expenses and other current assets	11,050	11,051
Total current assets	353,915	396,771
Property, plant and equipment, net	25,130	41,149
Operating lease assets	6,175
Finance lease assets, net	22,231
Long-term restricted cash	6,707	6,909
Deferred income taxes	71,121	71,939
Other assets	45,198	31,673
Total assets	530,477	548,441
Current liabilities:
Accounts payable	21,320	35,955
Accrued compensation	6,961	19,218
Warranty	3,251	4,819
Income taxes	269	462
Deferred revenue	23,300	19,513
Current portion of finance lease obligation	252
Other current liabilities	7,674	5,030
Total current liabilities	63,027	84,997
Finance lease obligation	48,297	47,757
Long-term deferred revenue	4,141	3,071
Other long-term liabilities	7,165	4,279
Total liabilities	122,630	140,104
Commitments and contingencies (Note 15)
Stockholders' equity:
Common stock, $0.001 par value, 75,000 shares authorized; 32,397 shares issued and outstanding at September 30, 2019; 32,558 shares issued and outstanding at December 31, 2018	32	33
Additional paid-in capital	559,063	565,116
Accumulated deficit	(149,938)	(157,260)
Accumulated other comprehensive (loss) income	(1,310)	448
Total stockholders' equity	407,847	408,337
Total liabilities and stockholders' equity	$ 530,477	$ 548,441

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Sep. 30, 2019	Dec. 31, 2018
Consolidated Balance Sheets
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	75,000	75,000
Common stock, shares issued	32,397	32,558
Common stock, shares outstanding	32,397	32,558

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)	Total
Balance (in shares) at Dec. 31, 2017	32,048
Balance at Dec. 31, 2017	$ 32	$ 556,147	$ (204,745)	$ 2,176	$ 353,610
Increase (Decrease) in Stockholders' Equity
Net income			13,915		13,915
Foreign currency translation adjustments				1,021	1,021
Change in pension obligation				30	30
Exercise of stock options (in shares)	75
Exercise of stock options		446			446
Issuance of restricted common shares (in shares)	19
Issuance of restricted common shares		(227)			(227)
Stock-based compensation expense		1,132			1,132
Balance (in shares) at Mar. 31, 2018	32,142
Balance at Mar. 31, 2018	$ 32	557,498	(189,230)	3,227	371,527
Balance (in shares) at Dec. 31, 2017	32,048
Balance at Dec. 31, 2017	$ 32	556,147	(204,745)	2,176	353,610
Increase (Decrease) in Stockholders' Equity
Net income					37,422
Foreign currency translation adjustments					(1,584)
Change in pension obligation					90
Balance (in shares) at Sep. 30, 2018	32,398
Balance at Sep. 30, 2018	$ 32	562,083	(165,723)	682	397,074
Increase (Decrease) in Stockholders' Equity
Adjustment to Retained Earnings upon ASC 606 Adoption			1,600		1,600
Balance (in shares) at Mar. 31, 2018	32,142
Balance at Mar. 31, 2018	$ 32	557,498	(189,230)	3,227	371,527
Increase (Decrease) in Stockholders' Equity
Net income			14,669		14,669
Foreign currency translation adjustments				(2,321)	(2,321)
Change in pension obligation				30	30
Exercise of stock options (in shares)	46
Exercise of stock options		376			376
Issuance of shares under Employee Stock Purchase Plan (in shares)	26
Issuance of shares under Employee Stock Purchase Plan		515			515
Issuance of restricted common shares (in shares)	117
Issuance of restricted common shares		(1,161)			(1,161)
Stock-based compensation expense		1,979			1,979
Balance (in shares) at Jun. 30, 2018	32,331
Balance at Jun. 30, 2018	$ 32	559,207	(174,561)	936	385,614
Increase (Decrease) in Stockholders' Equity
Net income			8,838		8,838
Foreign currency translation adjustments				(284)	(284)
Change in pension obligation				30	30
Exercise of stock options (in shares)	66
Exercise of stock options		467			467
Issuance of restricted common shares (in shares)	1
Issuance of restricted common shares		(6)			(6)
Stock-based compensation expense		2,415			2,415
Balance (in shares) at Sep. 30, 2018	32,398
Balance at Sep. 30, 2018	$ 32	562,083	(165,723)	682	397,074
Balance (in shares) at Dec. 31, 2018	32,558
Balance at Dec. 31, 2018	$ 33	565,116	(157,260)	448	408,337
Increase (Decrease) in Stockholders' Equity
Net income			6,062		6,062
Foreign currency translation adjustments				(495)	(495)
Change in pension obligation				30	30
Exercise of stock options (in shares)	288
Exercise of stock options		1,828			1,828
Issuance of restricted common shares (in shares)	35
Issuance of restricted common shares		(281)			(281)
Stock-based compensation expense		1,672			1,672
Balance (in shares) at Mar. 31, 2019	32,881
Balance at Mar. 31, 2019	$ 33	568,335	(151,198)	(17)	417,153
Balance (in shares) at Dec. 31, 2018	32,558
Balance at Dec. 31, 2018	$ 33	565,116	(157,260)	448	408,337
Increase (Decrease) in Stockholders' Equity
Net income					7,322
Foreign currency translation adjustments					(1,847)
Change in pension obligation					89
Balance (in shares) at Sep. 30, 2019	32,397
Balance at Sep. 30, 2019	$ 32	559,063	(149,938)	(1,310)	407,847
Balance (in shares) at Mar. 31, 2019	32,881
Balance at Mar. 31, 2019	$ 33	568,335	(151,198)	(17)	417,153
Increase (Decrease) in Stockholders' Equity
Net income			556		556
Foreign currency translation adjustments				(219)	(219)
Change in pension obligation				29	29
Exercise of stock options (in shares)	104
Exercise of stock options		567			567
Issuance of shares under Employee Stock Purchase Plan (in shares)	32
Issuance of shares under Employee Stock Purchase Plan		479			479
Issuance of restricted common shares (in shares)	165
Issuance of restricted common shares		(1,310)			(1,310)
Stock-based compensation expense		2,246			2,246
Repurchase of common stock (in shares)	(885)
Repurchase of common stock	$ (1)	(14,034)			(14,035)
Balance (in shares) at Jun. 30, 2019	32,297
Balance at Jun. 30, 2019	$ 32	556,283	(150,642)	(207)	405,466
Increase (Decrease) in Stockholders' Equity
Net income			704		704
Foreign currency translation adjustments				(1,132)	(1,132)
Change in pension obligation				29	29
Exercise of stock options (in shares)	97
Exercise of stock options		642			642
Issuance of restricted common shares (in shares)	3
Issuance of restricted common shares		(11)			(11)
Stock-based compensation expense		2,149			2,149
Balance (in shares) at Sep. 30, 2019	32,397
Balance at Sep. 30, 2019	$ 32	$ 559,063	$ (149,938)	$ (1,310)	$ 407,847

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities
Net income	$ 7,322	$ 37,422
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	5,583	4,208
Deferred income taxes	818	6,767
Stock-based compensation expense	6,140	5,603
Provision for excess and obsolete inventory	1,961	1,657
Changes in operating assets & liabilities:
Accounts receivable	29,232	(10,222)
Inventories	(16,602)	(4,867)
Prepaid expenses and other current assets	(155)	49
Accounts payable and other current liabilities	(22,887)	(10,872)
Deferred revenue	4,864	1,245
Income taxes	(185)	(61)
Other assets and liabilities	(16,436)	(13,709)
Net cash (used in) provided by operating activities	(345)	17,220
Cash flows from investing activities
Expenditures for property, plant and equipment and capitalized software	(11,064)	(3,852)
Net cash used in investing activities	(11,064)	(3,852)
Cash flows from financing activities
Net settlement on restricted stock grants	(1,602)	(1,393)
Repurchase of common stock	(14,035)
Proceeds from Employee Stock Purchase Plan	407	437
Proceeds from exercise of stock options	3,039	1,289
Net cash (used in) provided by financing activities	(12,191)	333
Effect of exchange rate changes on cash and cash equivalents	871	1,012
Net (decrease) increase in cash, cash equivalents and restricted cash	(22,729)	14,713
Cash, cash equivalents and restricted cash at beginning of period	184,902	140,880
Cash, cash equivalents and restricted cash at end of period	$ 162,173	$ 155,593

Nature of Business

Nature of Business	9 Months Ended
	Sep. 30, 2019
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 producer of ion implantation equipment used in the fabrication of semiconductor chips in the United States, Europe and Asia. In addition, we provide extensive worldwide 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, 2018 has been derived from the audited consolidated 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, 2018.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2019
Stock-Based Compensation
Stock-Based Compensation	Note 2. Stock-Based Compensation We maintain 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. 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, unexpired awards granted under the 2000 Stock Plan remain outstanding and subject to the terms of the 2000 Stock Plan. We also maintain 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 13 to the consolidated financial statements in our 2018 Annual Report on Form 10-K. We recognized stock-based compensation expense of $2.1 million and $2.4 million for the three month periods ended September 30, 2019 and 2018, respectively. We recognized stock-based compensation expense of $6.1 million and $5.6 million for the nine month periods ended September 30, 2019 and 2018, respectively. These amounts include compensation expense related to restricted stock units (“RSUs”), non-qualified stock options and stock to be issued to participants under the ESPP. In the three month periods ended September 30, 2019 and 2018, we issued 0.1 million shares of common stock upon stock option exercises and vesting of RSUs. In the three month periods ended September 30, 2019 and 2018, we received proceeds of $0.6 million and $0.5 million, respectively, in connection with the exercise of stock options. In the nine month periods ended September 30, 2019 and 2018, we issued 0.7 million and 0.3 million shares of common stock, respectively, upon stock option exercises, purchases under the ESPP and vesting of RSUs. In the nine month periods ended September 30, 2019 and 2018, we received proceeds of $3.4 million and $1.7 million, respectively, in connection with the exercise of stock options and ESPP purchases.

Leases

Leases	9 Months Ended
	Sep. 30, 2019
Leases
Leases	Note 3. Leases We have operating leases for office space, warehouse space, computer and office equipment and vehicles used in our business operations. We have a finance lease in relation to the 2015 sale-leaseback of our corporate headquarters in Beverly, Massachusetts. We review all contract agreements to determine if the agreement contains a lease component. An agreement contains a lease component if it provides the use of a specific physical space or a specific physical item. We recognize the lease obligation on a discounted basis using the explicit or implicit discount rate stated within the agreement. We recognize a corresponding right-of-use asset, which is initially determined based upon the net present value of the associated liability and is adjusted for deferred costs and possible impairment, if any. For those lease agreements that do not indicate the applicable discount rate, we use our incremental borrowing rate. The value of the right-of-use asset is initially determined based on the net present value of the associated liability, and is adjusted for deferred costs and possible impairments, if any. We have made the following policy elections: (i) operating leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet; (ii) we recognize lease expense for operating leases on a straight-line basis over the lease term; and (iii) we account for lease components and non-lease components that are fixed payments as one component. Some of our operating leases include one or more options to renew, with renewal terms that can extend the respective lease term 1 to 3 years. The exercise of lease renewal options are at our sole discretion. For lease extensions that are reasonably certain to occur, we have included these renewal periods in our calculation of the net present value of the lease obligation and related right-of-use asset. Certain leases also include options to purchase the leased property. The depreciable life of certain assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The amounts of operating and finance lease right-of-use assets and related lease obligations recorded within our consolidated balance sheet are as follows: September 30, Leases Classification 2019 Assets (in thousands) Operating lease Operating lease assets $ 6,175 Finance lease Finance lease assets * 22,231 Total leased assets $ 28,406 Liabilities Current Operating Other current liabilities $ 3,219 Finance Current portion of finance lease obligation 252 Noncurrent Operating Other long-term liabilities 2,899 Finance Finance lease obligation 48,297 Total lease liabilities $ 54,667 * Finance lease assets are recorded net of accumulated depreciation of $47.3 million and include $0.8 million of prepaid financing costs as of September 30, 2019. All of our office locations support selling and servicing functions. Lease expense, depreciation expense relating to finance leased assets and interest expense relating to our finance lease obligation recognized within our consolidated statement of operations for the three and nine months ended September 30, 2019 are as follows: Three months ended Nine months ended September 30, September 30, Lease cost Classification 2019 2019 Operating lease cost (in thousands) Service Cost of revenue $ 552 $ 1,732 Research and development Operating expenses 80 232 Sales and marketing* Operating expenses 338 1,037 General and administrative* Operating expenses 207 608 Total operating lease cost $ 1,177 $ 3,609 Finance lease cost Depreciation of leased assets Cost of revenue, R&D, Sales and marketing and G&A $ 332 $ 997 Interest on lease liabilities Interest expense 1,308 3,849 Total finance lease cost $ 1,640 $ 4,846 Total lease cost $ 2,817 $ 8,455 * Sales and marketing, general and administrative expense includes short-term lease and variable lease costs of approximately $0.2 million and $0.6 million for the three and nine months ended September 30, 2019, respectively. Our corporate headquarters, shown below under finance leases, has an original lease term of 22 years. All other locations are treated as operating leases, with lease terms ranging from 1 to 10 years. The tables below reflect the minimum cash outflow regarding our current lease obligations as well as the weighted-average remaining lease term and weighted-average discount rates used on our calculation of our lease obligations and right-of-use assets: Finance Operating Total Maturity of Lease Liabilities Leases Leases Leases (in thousands) 2019 $ 1,401 $ 923 $ 2,324 2020 5,720 3,283 9,003 2021 5,848 1,650 7,498 2022 5,980 508 6,488 2023 6,114 113 6,227 Thereafter 85,905 266 86,171 Total lease payments $ 110,968 $ 6,743 $ 117,711 Less interest portion* (62,419) (625) (63,044) Finance lease and operating lease obligations $ 48,549 $ 6,118 $ 54,667 * Finance lease interest calculated using the implied interest rate; operating lease interest calculated using estimated corporate borrowing rate. September 30, Lease term and discount rate 2019 Weighted-average remaining lease term (years): Operating leases 2.3 Finance leases 17.6 Weighted-average discount rate: Operating leases 4.5% Finance leases 10.5% Our cash outflows from our operating leases include rent expense and other charges associated with these leases. These cash flows are included within the operating section of our statement of cash flows. Our cash flows from our finance lease currently include an interest only component and starting in April 2020, both an interest and payment of principal component. The table below shows our cash outflows, by lease type and related section of our statement of cash flows as well as the non-cash amount capitalized on our balance sheet in relation to our operating lease right-of-use assets: Nine months ended September 30, Cash paid for amounts included in the measurement of lease liabilities 2019 (in thousands) Operating cash outflows from operating leases $ 3,609 Operating cash outflows from finance leases 4,193 Financing cash outflows from finance leases — Operating lease assets obtained in exchange for new operating lease liabilities 6,175 Finance lease assets obtained in exchange for new finance lease liabilities $ —

Revenue

Revenue	9 Months Ended
	Sep. 30, 2019
Revenue.
Revenue	Note 4. Revenue To reflect the organization of our business operations, we divide revenue into two categories: revenue from sales of new systems and revenue arising from the sale of used systems, parts and labor to customers who own systems, which we refer to as Aftermarket. Revenue by categories used by management are as follows: Three months ended Nine months ended September 30, September 30, 2019 2018 2019 2018 (in thousands) Systems $ $ $ $ Aftermarket 32,644 38,980 104,111 121,103 $ $ $ $ Revenue by geographic markets is determined based upon the location of where our products are shipped and our services are performed. Revenue in our principal geographic markets is as follows: Three months ended Nine months ended September 30, September 30, 2019 2018 2019 2018 (in thousands) North America $ $ $ $ Asia Pacific Europe $ $ $ $ Our system sales revenue transactions give rise to contract liabilities (in the case of pre-payments and the fair value of goods and services to be delivered after the system delivery, such as installation and warranty obligations). Contract liabilities are as follows: September 30, December 31, 2019 2018 (in thousands) Contract liabilities $ 27,441 $ 22,584 Contract liabilities are reflected as deferred revenue on the consolidated balance sheet and relate to payments invoiced or received in advance of completion of performance obligations under a contract. Contract liabilities are recognized as revenue upon the fulfillment of performance obligations. Three months ended Nine months ended September 30, September 30, 2019 2018 2019 2018 (in thousands) Balance, beginning of the period $ 14,080 $ 15,175 $ 22,584 $ 18,145 Deferral of revenue 17,254 7,168 20,887 11,586 Recognition of deferred revenue (3,893) (4,569) (16,030) (11,957) Balance, ending of the period $ 27,441 $ 17,774 $ 27,441 $ 17,774 The majority of our system transactions have payment terms of 90% due upon shipment of the tool and 10% due upon acceptance. Aftermarket transaction payment terms are such that payment is due either within 30 or 60 days of service provided or delivery of parts.

Computation of Net Earnings per

Computation of Net Earnings per Share	9 Months Ended
	Sep. 30, 2019
Computation of Net Earnings per Share
Computation of Net Earnings per Share	Note 5. Computation of Net Earnings 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 by the number of additional common shares that would have been outstanding if the potentially dilutive common shares issuable for stock options and RSUs had been issued, calculated using the treasury stock method. The components of net earnings per share are as follows: Three months ended Nine months ended September 30, September 30, 2019 2018 2019 2018 (in thousands, except per share amounts) Net income available to common stockholders $ 704 $ 8,838 $ 7,322 $ 37,422 Weighted average common shares outstanding used in computing basic income per share 32,344 32,365 32,584 32,225 Incremental options and RSUs 979 1,608 1,237 1,807 Weighted average common shares used in computing diluted net income per share 33,323 33,973 33,821 34,032 Net income per share Basic $ 0.02 $ 0.27 $ 0.22 $ 1.16 Diluted $ 0.02 $ 0.26 $ 0.22 $ 1.10 Diluted weighted average common shares outstanding does not include options and RSUs outstanding to purchase 0.8 million and 0.3 million common equivalent shares for the three month periods ended September 30, 2019 and 2018, respectively, nor options and RSUs outstanding to purchase 0.2 million and eleven thousand common equivalent shares for the nine month periods ended September 30, 2019 and 2018, respectively, as their effect would have been anti-dilutive.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	9 Months Ended
	Sep. 30, 2019
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Loss	Note 6. Accumulated Other Comprehensive Loss The following table presents the changes in accumulated other comprehensive loss, net of tax, by component, for the nine months ended September 30, 2019: Foreign Defined benefit currency pension plan Total (in thousands) Balance at December 31, 2018 $ 962 $ (514) $ 448 Other comprehensive loss and pension reclassification (1,847) 89 (1,758) Balance at September 30, 2019 $ (885) $ (425) $ (1,310)

Cash, cash equivalents and rest

Cash, cash equivalents and restricted cash	9 Months Ended
	Sep. 30, 2019
Cash, cash equivalents and restricted cash
Cash, cash equivalents and restricted cash	Note 7. Cash, cash equivalents and restricted cash The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheet that sum to the total of the amounts shown in the statement of cash flows: September 30, December 31, 2019 2018 (in thousands) Cash and cash equivalents $ $ Short-term and long-term restricted cash Total cash, cash equivalents and restricted cash $ $ As of September 30, 2019, we had $6.9 million in restricted cash which relates to a $5.9 million letter of credit serving as security for the lease of our corporate headquarters in Beverly, Massachusetts, a $0.7 million letter of credit relating to workers’ compensation insurance, a $0.2 million deposit securing a bank guarantee of our performance relating to a customer payment and a $0.1 million deposit relating to customs activity.

Inventories, net

Inventories, net	9 Months Ended
	Sep. 30, 2019
Inventories, net
Inventories, net	Note 8. Inventories, net The components of inventories are as follows: September 30, December 31, 2019 2018 (in thousands) Raw materials $ 95,758 $ 91,875 Work in process 30,486 23,857 Finished goods (completed systems) 12,109 13,268 Inventories, net $ 138,353 $ 129,000 When recorded, inventory reserves reduce the carrying value of inventories to their net realizable value. We establish 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. We regularly evaluate 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.

Product Warranty

Product Warranty	9 Months Ended
	Sep. 30, 2019
Product Warranty
Product Warranty	Note 9. Product Warranty We generally offer a one year warranty for all of our systems, the terms and conditions of which vary depending upon the product sold. For all systems sold, we accrue a liability for the estimated cost of standard warranty at the time of system shipment and defer 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 our warranty liability include the number of installed units, historical and anticipated product failure rates, material usage and service labor costs. We periodically assess the adequacy of our recorded liability and adjust the amount as necessary. The changes in our standard product warranty liability are as follows: Nine months ended September 30, 2019 2018 (in thousands) Balance at January 1 (beginning of year) $ 5,091 $ 4,502 Warranties issued during the period 2,282 4,294 Settlements made during the period (4,405) (4,566) Changes in estimate of liability for pre-existing warranties during the period 523 650 Balance at September 30 (end of period) $ 3,491 $ 4,880 Amount classified as current $ 3,251 $ 4,545 Amount classified as long-term 240 335 Total warranty liability $ 3,491 $ 4,880

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2019
Fair Value Measurements
Fair Value Measurements	Note 10. Fair Value Measurements Certain assets on our balance sheets are reported at their fair value. Fair value is defined as the 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 Our money market funds and short-term investments are included in cash and cash equivalents in the consolidated balance sheets. The following table sets forth our assets by level within the fair value hierarchy: September 30, 2019 Fair Value Measurements Level 1 Level 2 Level 3 Total (in thousands) Assets Cash equivalents: Money market funds, U.S. Government Securities and Agency Investments $ 112,655 $ 24,000 $ — $ 136,655 December 31, 2018 Fair Value Measurements Level 1 Level 2 Level 3 Total (in thousands) Assets Cash equivalents: Money market funds, U.S. Government Securities and Agency Investments $ 138,510 $ 21,700 $ — $ 160,210 (c) Other Financial Instruments The carrying amounts reflected in the consolidated balance sheets for accounts receivable, prepaid expenses and other current assets and non-current assets, restricted cash, accounts payable and accrued expenses approximate fair value due to their short-term maturities.

Financing Arrangements

Financing Arrangements	9 Months Ended
	Sep. 30, 2019
Financing Arrangements
Financing Arrangements	Note 11. Financing Arrangements On January 30, 2015, we sold our corporate headquarters facility in Beverly Massachusetts for $48.9 million. As part of the sale, we also entered into a 22-year lease agreement of our headquarters facility. This sale-leaseback is accounted for as a financing lease under generally accepted accounting principles and, as such, we have recorded a financing obligation of $48.5 million as of September 30, 2019. Our current lease payments are interest only payments. Commencing in April 2020, the associated lease payments will include both an interest component and payment of principal, with the remaining liability being extinguished at the end of the original lease term. We posted a 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 the associated cash is included in long-term restricted cash.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2019
Income Taxes
Income Taxes	Note 12. Income Taxes The income tax benefit was $0.3 million for the three months ended September 30, 2019, a decrease of $0.8 million when compared to the three months ended September 30, 2018. The $0.8 million decrease was primarily due to a decrease in pretax income for the period of $9.0 million as well as a $1.4 million tax benefit in the three months ended September 30, 2018, relating to the 2017 Tax Cut and Jobs Act. The income tax provision was $0.9 million during the nine months ended September 30, 2019, a decrease of $6.1 million when compared to the nine months ended September 30, 2018. This change was primarily attributable to the decrease in pretax income of $36.2 million. We have significant net operating loss carryforwards in the United States and certain European jurisdictions, and, as a result, we do not currently pay significant income taxes in these jurisdictions. At December 31, 2018, we had $71.9 million of deferred tax assets worldwide comprised of net operating loss carryforwards, tax credit carryforwards and other temporary differences, which are available to reduce income tax liabilities in future years. This amount was net of a $6.8 million valuation allowance. As of September 30, 2019, the valuation allowance increased to $7.7 million due to the uncertainty of the utilization of certain research and development credits.

Concentration of Risk

Concentration of Risk	9 Months Ended
	Sep. 30, 2019
Concentration of Risk
Concentration of Risk	Note 13. Concentration of Risk For the three months ended September 30, 2019, two customers accounted for 28.0% and 13.2% of total revenue, respectively. For the three months ended September 30, 2018, three customers accounted for 17.8%, 13.6% and 13.1% of total revenue, respectively. For the nine months ended September 30, 2019, three customers accounted for 18.7%, 12.4% and 11.8% of total revenue, respectively. For the nine months ended September 30, 2018, two customers accounted for 22.9% and 10.8% of total revenue, respectively. At September 30, 2019, four customers accounted for 21.1%, 17.5%, 11.2% and 10.6% of accounts receivable, respectively. At December 31, 2018, two customers accounted for 21.9% and 11.5% of accounts receivable, respectively.

Share Repurchase

Share Repurchase	9 Months Ended
	Sep. 30, 2019
Share Repurchase
Share Repurchase	Note 14. Share Repurchase Under the current stock repurchase plan, announced on January 14, 2019, we are authorized to repurchase up to $35 million of our common stock through the end of 2019. During the nine months ended September 30, 2019, we purchased 0.9 million shares at an average cost of $15.83 per share. The timing and actual number of shares repurchased will depend on various factors including price, corporate and regulatory requirements, alternative investment opportunities and other market conditions. Shares repurchased by us are accounted for when the transaction is settled. There were no unsettled share repurchases at September 30, 2019. Shares repurchased and retired are deducted from common stock for par value and from additional paid-in capital for the excess over par value. If additional paid-in capital has been exhausted, the excess over par value either increases the accumulated deficit or reduces retained earnings. Direct costs incurred to acquire the shares are included in the total cost of the shares.

Contingencies

Contingencies	9 Months Ended
	Sep. 30, 2019
Contingencies
Contingencies	Note 15. Contingencies (a) Litigation We are, from time to time, a party to litigation that arises in the normal course of our business operations. We are not presently a party to any litigation that we believe might have a material adverse effect on our business operations. (b) Indemnifications Our system sales agreements typically include provisions under which we agree to take certain actions, provide certain remedies and defend our customers against third-party claims of intellectual property infringement under specified conditions and indemnify customers against any damage and costs awarded in connection with such claims. We have not incurred any material costs as a result of such indemnifications and have not accrued any liabilities related to such obligations in the accompanying consolidated financial statements.

Headcount-related Actions

Headcount-related Actions	9 Months Ended
	Sep. 30, 2019
Headcount-related Actions
Headcount-related Actions	Note 16. Headcount-related Actions During the second quarter of 2019, we took steps to reduce expenses through a variety of programs. Headcount–related actions resulted in $1.0 million of additional expense in the nine months ended September 30, 2019. This expense was recorded as follows; $0.5 million to cost of revenue, $0.3 million to research and development and $0.1 million to both sales and marketing and general and administrative, respectively. As of September 30, 2019, $0.8 million of these expenses remained accrued within current liabilities.

Recent Accounting Guidance

Recent Accounting Guidance	9 Months Ended
	Sep. 30, 2019
Recent Accounting Guidance
Recent Accounting Guidance	Note 17. Recent Accounting Guidance (a) Accounting Standards Update 2016-02 on Leases Effective January 1, 2019 We adopted Accounting Standards Update (“ASU”) No. 2016-02, “ Leases” and ASU No. 2018-11 “ Leases (Topic 842)” , collectively (“Topic 842) as of January 1, 2019, using the modified retrospective approach, applying the new lease standard at the adoption date. We elected the package of practical expedients permitted under the transition guidance within the new standard, carrying forward the historical lease classification for both operating and finance leases. We made an accounting policy election to keep leases with an initial term of 12 months or less off of the balance sheet. We recognize the lease expense relating to operating leases on a straight-line basis over the respective lease term and report the associated expense within the operating activities section of our statement of cash flows. We recognize the interest expense on our finance lease within the operating activities section of our statement of cash flows and recognize the payment of principal of our finance lease obligation within the financing activities section of our statement of cash flows. The adoption of Topic 842 resulted in the recording of additional net operating lease assets and related lease liabilities of $7.5 million as of January 1, 2019. We also reclassified $22.1 million net, of previously capitalized property, plant and equipment associated with the sale of our corporate headquarters, as well as $0.8 million of prepaid transaction costs, as finance lease assets, within our balance sheet. The related finance lease liability associated with the sale-leaseback increased $0.8 million as a result of the reclassification of the prepaid transaction costs. The standard had no impact on our consolidated net earnings and cash flows. (b) Accounting Standards Update 2018-13 on Fair Value Measurements We adopted ASU No. 2018-13 “Fair Value Measurement (Topic 820)” as of January 1, 2019, The amendments in ASU No. 2018-13 modify the disclosure requirements on fair value measurements in Topic 820, removing disclosure requirements for transfers between Level 1 and Level 2 within the fair value hierarchy, as well as modifying the disclosure requirement relating to the timing of liquidation for investments calculated on net asset value. The ASU also requires the disclosure of unrealized gains and losses for the period included in other comprehensive income for Level 3 instruments. The amendments on changes for unrealized gains and losses should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. The adoption of ASU 2018-13 did not have any impact on our consolidated financial statements and disclosures. (c) Accounting Standards Update 2019-04 on Financial Instruments; Topic 326, Topic 815 and Topic 825 to be Effective January 1, 2020 In April 2019, the Financial Accounting Standards Board issued ASU No. 2019-04 “Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments.” The amendments in this Update clarify the guidance within Topic 326 relating to credit losses. The guidance is effective for annual reporting periods beginning after December 15, 2019, and interim periods within those years. Early adoption is permitted in any interim period after issuance of this Update as long as the entity has adopted the amendments in Update 2016-13. The amendments in these Updates should be applied on a modified-retrospective basis by means of a cumulative-effect adjustment to the opening retained earnings balance in the statement of financial position as of the date of adoption of Update 2016-13. The adoption of these Updates is not expected to have a material impact on our results of operations or cash flows.

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2019
Leases
Schedule of operating and finance lease right-of-use assets and related lease obligations	September 30, Leases Classification 2019 Assets (in thousands) Operating lease Operating lease assets $ 6,175 Finance lease Finance lease assets * 22,231 Total leased assets $ 28,406 Liabilities Current Operating Other current liabilities $ 3,219 Finance Current portion of finance lease obligation 252 Noncurrent Operating Other long-term liabilities 2,899 Finance Finance lease obligation 48,297 Total lease liabilities $ 54,667 * Finance lease assets are recorded net of accumulated depreciation of $47.3 million and include $0.8 million of prepaid financing costs as of September 30, 2019.
Schedule of lease costs	Three months ended Nine months ended September 30, September 30, Lease cost Classification 2019 2019 Operating lease cost (in thousands) Service Cost of revenue $ 552 $ 1,732 Research and development Operating expenses 80 232 Sales and marketing* Operating expenses 338 1,037 General and administrative* Operating expenses 207 608 Total operating lease cost $ 1,177 $ 3,609 Finance lease cost Depreciation of leased assets Cost of revenue, R&D, Sales and marketing and G&A $ 332 $ 997 Interest on lease liabilities Interest expense 1,308 3,849 Total finance lease cost $ 1,640 $ 4,846 Total lease cost $ 2,817 $ 8,455 * Sales and marketing, general and administrative expense includes short-term lease and variable lease costs of approximately $0.2 million and $0.6 million for the three and nine months ended September 30, 2019, respectively.
Schedule of future minimum operating leases	Finance Operating Total Maturity of Lease Liabilities Leases Leases Leases (in thousands) 2019 $ 1,401 $ 923 $ 2,324 2020 5,720 3,283 9,003 2021 5,848 1,650 7,498 2022 5,980 508 6,488 2023 6,114 113 6,227 Thereafter 85,905 266 86,171 Total lease payments $ 110,968 $ 6,743 $ 117,711 Less interest portion* (62,419) (625) (63,044) Finance lease and operating lease obligations $ 48,549 $ 6,118 $ 54,667 * Finance lease interest calculated using the implied interest rate; operating lease interest calculated using estimated corporate borrowing rate.
Schedule of future minimum finance leases	Finance Operating Total Maturity of Lease Liabilities Leases Leases Leases (in thousands) 2019 $ 1,401 $ 923 $ 2,324 2020 5,720 3,283 9,003 2021 5,848 1,650 7,498 2022 5,980 508 6,488 2023 6,114 113 6,227 Thereafter 85,905 266 86,171 Total lease payments $ 110,968 $ 6,743 $ 117,711 Less interest portion* (62,419) (625) (63,044) Finance lease and operating lease obligations $ 48,549 $ 6,118 $ 54,667 * Finance lease interest calculated using the implied interest rate; operating lease interest calculated using estimated corporate borrowing rate.
Schedule of weighted-average remaining lease term and discount rates	September 30, Lease term and discount rate 2019 Weighted-average remaining lease term (years): Operating leases 2.3 Finance leases 17.6 Weighted-average discount rate: Operating leases 4.5% Finance leases 10.5%
Schedule of cash outflows by lease type	Nine months ended September 30, Cash paid for amounts included in the measurement of lease liabilities 2019 (in thousands) Operating cash outflows from operating leases $ 3,609 Operating cash outflows from finance leases 4,193 Financing cash outflows from finance leases — Operating lease assets obtained in exchange for new operating lease liabilities 6,175 Finance lease assets obtained in exchange for new finance lease liabilities $ —

Revenue (Tables)

Revenue (Tables)	9 Months Ended
	Sep. 30, 2019
Revenue.
Schedule of revenue by discipline	Three months ended Nine months ended September 30, September 30, 2019 2018 2019 2018 (in thousands) Systems $ $ $ $ Aftermarket 32,644 38,980 104,111 121,103 $ $ $ $
Schedule of revenue by geographic markets	Three months ended Nine months ended September 30, September 30, 2019 2018 2019 2018 (in thousands) North America $ $ $ $ Asia Pacific Europe $ $ $ $
Schedule of contract assets and contract liabilities	September 30, December 31, 2019 2018 (in thousands) Contract liabilities $ 27,441 $ 22,584 Contract liabilities are reflected as deferred revenue on the consolidated balance sheet and relate to payments invoiced or received in advance of completion of performance obligations under a contract. Contract liabilities are recognized as revenue upon the fulfillment of performance obligations. Three months ended Nine months ended September 30, September 30, 2019 2018 2019 2018 (in thousands) Balance, beginning of the period $ 14,080 $ 15,175 $ 22,584 $ 18,145 Deferral of revenue 17,254 7,168 20,887 11,586 Recognition of deferred revenue (3,893) (4,569) (16,030) (11,957) Balance, ending of the period $ 27,441 $ 17,774 $ 27,441 $ 17,774

Computation of Net Earnings p_2

Computation of Net Earnings per Share (Tables)	9 Months Ended
	Sep. 30, 2019
Computation of Net Earnings per Share
Schedule of components of net income per share	Three months ended Nine months ended September 30, September 30, 2019 2018 2019 2018 (in thousands, except per share amounts) Net income available to common stockholders $ 704 $ 8,838 $ 7,322 $ 37,422 Weighted average common shares outstanding used in computing basic income per share 32,344 32,365 32,584 32,225 Incremental options and RSUs 979 1,608 1,237 1,807 Weighted average common shares used in computing diluted net income per share 33,323 33,973 33,821 34,032 Net income per share Basic $ 0.02 $ 0.27 $ 0.22 $ 1.16 Diluted $ 0.02 $ 0.26 $ 0.22 $ 1.10

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	9 Months Ended
	Sep. 30, 2019
Accumulated Other Comprehensive Loss
Schedule of changes in accumulated other comprehensive income, net of tax	Foreign Defined benefit currency pension plan Total (in thousands) Balance at December 31, 2018 $ 962 $ (514) $ 448 Other comprehensive loss and pension reclassification (1,847) 89 (1,758) Balance at September 30, 2019 $ (885) $ (425) $ (1,310)

Cash, cash equivalents and re_2

Cash, cash equivalents and restricted cash (Tables)	9 Months Ended
	Sep. 30, 2019
Cash, cash equivalents and restricted cash
Schedule of reconciliation of cash, cash equivalents and restricted cash	September 30, December 31, 2019 2018 (in thousands) Cash and cash equivalents $ $ Short-term and long-term restricted cash Total cash, cash equivalents and restricted cash $ $

Inventories, net (Tables)

Inventories, net (Tables)	9 Months Ended
	Sep. 30, 2019
Inventories, net
Schedule of components of inventories	September 30, December 31, 2019 2018 (in thousands) Raw materials $ 95,758 $ 91,875 Work in process 30,486 23,857 Finished goods (completed systems) 12,109 13,268 Inventories, net $ 138,353 $ 129,000

Product Warranty (Tables)

Product Warranty (Tables)	9 Months Ended
	Sep. 30, 2019
Product Warranty
Schedule of product warranty liability	Nine months ended September 30, 2019 2018 (in thousands) Balance at January 1 (beginning of year) $ 5,091 $ 4,502 Warranties issued during the period 2,282 4,294 Settlements made during the period (4,405) (4,566) Changes in estimate of liability for pre-existing warranties during the period 523 650 Balance at September 30 (end of period) $ 3,491 $ 4,880 Amount classified as current $ 3,251 $ 4,545 Amount classified as long-term 240 335 Total warranty liability $ 3,491 $ 4,880

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2019
Fair Value Measurements
Schedule of Company's assets and liabilities by level within the fair value hierarchy	September 30, 2019 Fair Value Measurements Level 1 Level 2 Level 3 Total (in thousands) Assets Cash equivalents: Money market funds, U.S. Government Securities and Agency Investments $ 112,655 $ 24,000 $ — $ 136,655 December 31, 2018 Fair Value Measurements Level 1 Level 2 Level 3 Total (in thousands) Assets Cash equivalents: Money market funds, U.S. Government Securities and Agency Investments $ 138,510 $ 21,700 $ — $ 160,210

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018
Stock-Based Compensation
Stock-based compensation expense	$ 2,100			$ 2,400			$ 6,100	$ 5,600
Proceeds from exercise of stock options							$ 3,039	$ 1,289
Common Stock
Stock-Based Compensation
Exercise of stock options (in shares)	97,000	104,000	288,000	66,000	46,000	75,000
Common Stock | Employee stock purchase plan
Stock-Based Compensation
Exercise of stock options (in shares)	100,000						700,000	300,000
Proceeds from exercise of stock options	$ 600			$ 500			$ 3,400	$ 1,700
2000 Stock Plan
Stock-Based Compensation
Number of shares of common stock available for future grant	0						0

Leases (Details)

Leases (Details)	9 Months Ended
	Sep. 30, 2019
Lessee, Lease, Description [Line Items]
Option to extend	true
Minimum
Lessee, Lease, Description [Line Items]
Renewal term	1 year
Maximum
Lessee, Lease, Description [Line Items]
Renewal term	3 years

Leases - Operating and Finance

Leases - Operating and Finance Lease Right-of-use-assets and Related Lease Obligations (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Leases
Operating lease assets	$ 6,175
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Operating lease assets
Finance lease assets	$ 22,231
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Finance lease assets
Total leased assets	$ 28,406
Operating liabilities current	$ 3,219
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Other Liabilities, Current
Finance liabilities current	$ 252
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	Other Liabilities, Current
Operating liabilities noncurrent	$ 2,899
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other Liabilities, Noncurrent
Finance liabilities noncurrent	$ 48,297	$ 47,757
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Finance liabilities noncurrent
Total lease liabilities	$ 54,667
Finance lease, accumulated depreciation	47,300
Prepaid financing costs	$ 800

Leases - Lease Cost (Details)

Leases - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Lease cost
Total operating lease cost	$ 1,177	$ 3,609
Depreciation of leased assets	332	997
Interest on lease liabilities	1,308	3,849
Total finance lease cost	1,640	4,846
Total lease cost	2,817	8,455
Short-term lease and variable lease costs	200	600
Service
Lease cost
Total operating lease cost	552	1,732
Research and development
Lease cost
Total operating lease cost	80	232
Sales and marketing
Lease cost
Total operating lease cost	338	1,037
General & administrative
Lease cost
Total operating lease cost	$ 207	$ 608

Leases - Future Minimum Cash Ou

Leases - Future Minimum Cash Outflow and Weighted-average Remaining Lease Term and Discount Rate (Details) $ in Thousands	Sep. 30, 2019USD ($)
Future minimum lease payments finance lease
2019	$ 1,401
2020	5,720
2021	5,848
2022	5,980
2023	6,114
Thereafter	85,905
Total lease payments	110,968
Less interest portion	(62,419)
Finance lease obligations	48,549
Future minimum lease payments operating lease
2019	923
2020	3,283
2021	1,650
2022	508
2023	113
Thereafter	266
Total lease payments	6,743
Less interest portion	(625)
Operating lease obligations	6,118
Future minimum lease payments finance and operating lease
2019	2,324
2020	9,003
2021	7,498
2022	6,488
2023	6,227
Thereafter	86,171
Total lease payments	117,711
Less interest portion	(63,044)
Total lease liabilities	$ 54,667
Lease term and discount rate
Operating leases -Weighted-average remaining lease term (in years)	2 years 3 months 18 days
Finance leases - Weighted-average remaining lease term (in years)	17 years 7 months 6 days
Operating leases - Weighted-average discount rate	4.50%
Finance leases - Weighted-average discount rate	10.50%
Operating lease term	22 years
Minimum
Lease term and discount rate
Finance lease term	1 year
Maximum
Lease term and discount rate
Finance lease term	10 years

Leases - Cash Flow by Lease Typ

Leases - Cash Flow by Lease Type (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)
Leases
Operating cash outflows from operating leases	$ 3,609
Operating cash outflows from finance leases	4,193
Operating lease assets obtained in exchange for new operating lease liabilities	$ 6,175

Revenue - Revenue by discipline

Revenue - Revenue by discipline & geographical areas (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Disaggregation of Revenue
Revenue	$ 69,453	$ 95,374	$ 235,235	$ 336,892
North America
Disaggregation of Revenue
Revenue	7,681	12,115	28,670	39,123
Asia Pacific
Disaggregation of Revenue
Revenue	47,756	67,019	160,398	253,179
Europe
Disaggregation of Revenue
Revenue	14,016	16,240	46,167	44,590
Systems
Disaggregation of Revenue
Revenue	36,809	56,394	131,124	215,789
Aftermarket
Disaggregation of Revenue
Revenue	$ 32,644	$ 38,980	$ 104,111	$ 121,103

Revenue - Contract assets and l

Revenue - Contract assets and liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Revenue.
Contract liabilities	$ 27,441	$ 14,080	$ 22,584	$ 17,774	$ 15,175	$ 18,145

Revenue - Contract liabilities

Revenue - Contract liabilities recognized as revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenue.
Balance, beginning of the period	$ 14,080	$ 15,175	$ 22,584	$ 18,145
Deferral of revenue	17,254	7,168	20,887	11,586
Recognition of deferred revenue	(3,893)	(4,569)	(16,030)	(11,957)
Balance, ending of the period	$ 27,441	$ 17,774	$ 27,441	$ 17,774

Revenue (Details)

Revenue (Details) - Systems	9 Months Ended
	Sep. 30, 2019
Disaggregation of Revenue
Payment upon shipment of tool, as a percent	90.00%
Payment upon installation, as a percent	10.00%
Minimum
Disaggregation of Revenue
Payment upon delivery of parts, period	30 days
Maximum
Disaggregation of Revenue
Payment upon delivery of parts, period	60 days

Computation of Net Earnings p_3

Computation of Net Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018
Computation of Net Earnings per Share
Net income available to common stockholders	$ 704	$ 556	$ 6,062	$ 8,838	$ 14,669	$ 13,915	$ 7,322	$ 37,422
Weighted average common shares outstanding used in computing basic income per share	32,344			32,365			32,584	32,225
Incremental options and RSUs	979			1,608			1,237	1,807
Weighted average common shares used in computing diluted net income per share	33,323			33,973			33,821	34,032
Net income per share
Basic	$ 0.02			$ 0.27			$ 0.22	$ 1.16
Diluted	$ 0.02			$ 0.26			$ 0.22	$ 1.10
Weighted average number diluted shares outstanding adjustment	800			300			200	11

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Changes in accumulated other comprehensive income, net of tax
Balance at December 31, 2018			$ 448
Other comprehensive loss and pension reclassification	$ (1,103)	$ (254)	(1,758)	$ (1,494)
Balance at September 30, 2019	(1,310)		(1,310)
Foreign currency
Changes in accumulated other comprehensive income, net of tax
Balance at December 31, 2018			962
Other comprehensive loss and pension reclassification			(1,847)
Balance at September 30, 2019	(885)		(885)
Defined benefit pension plan
Changes in accumulated other comprehensive income, net of tax
Balance at December 31, 2018			(514)
Other comprehensive loss and pension reclassification			89
Balance at September 30, 2019	$ (425)		$ (425)

Cash, cash equivalents and re_3

Cash, cash equivalents and restricted cash (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2017
Cash and cash equivalents	$ 155,317	$ 177,993
Short-term and long-term restricted cash	6,856	6,909
Total cash, cash equivalents and restricted cash	162,173	$ 184,902	$ 155,593	$ 140,880
Letter of credit related to workers' compensation insurance	700
Deposit securing a bank guarantee	200
Deposit related to customs activity	100
Revolving credit facility
Restricted cash which relates to support of outstanding letters of credit	6,900
Revolving credit facility | Beverly Property Owner LLC
Letter of credit associated with security deposit for leaseback transaction	$ 5,900

Inventories, net (Details)

Inventories, net (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Inventories, net
Raw materials	$ 95,758	$ 91,875
Work in process	30,486	23,857
Finished goods (completed systems)	12,109	13,268
Inventories, net	$ 138,353	$ 129,000

Product Warranty (Details)

Product Warranty (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018
Product Warranty
Product warranty period	1 year
Changes in standard product warranty liability
Balance at January 1 (beginning of year)	$ 5,091	$ 4,502
Warranties issued during the period	2,282	4,294
Settlements made during the period	(4,405)	(4,566)
Changes in estimate of liability for pre-existing warranties during the period	523	650
Balance at September 30 (end of period)	3,491	4,880
Product warranty classification
Amount classified as current			$ 3,251	$ 4,819	$ 4,545
Amount classified as long-term			240		335
Total warranty liability	$ 5,091	$ 4,502	$ 3,491	$ 5,091	$ 4,880

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Recurring - Money market funds, US Government Securities and Agency Investments - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Total
Fair Value Measurements
Money market funds, U.S. Government Securities and Agency Investments	$ 136,655	$ 160,210
Level 1
Fair Value Measurements
Money market funds, U.S. Government Securities and Agency Investments	112,655	138,510
Level 2
Fair Value Measurements
Money market funds, U.S. Government Securities and Agency Investments	$ 24,000	$ 21,700

Financing Arrangements (Details

Financing Arrangements (Details) - USD ($) $ in Thousands	Jan. 30, 2015	Sep. 30, 2019	Dec. 31, 2018
Financing Arrangements
Lease term		22 years
Finance lease obligation		$ 48,297	$ 47,757
Beverly Property Owner LLC | Buildings
Financing Arrangements
Finance lease obligation		48,500
Security deposit		$ 5,900
Beverly Property Owner LLC | Sale leaseback obligation | Buildings
Financing Arrangements
Sale price	$ 48,900
Lease term	22 years

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Income Taxes
Income tax provision	$ (328)	$ 508	$ 943	$ 7,036
Decrease in income tax	800		6,100
Decrease in income tax due to decrease in pretax income	800
Decrease in pretax income	9,000		36,200
Tax benefit relating to the 2017 Tax Cut and Jobs Act		$ 1,400
Deferred tax assets	71,121		71,121		$ 71,939
Deferred tax assets valuation allowance	$ 7,700		$ 7,700		$ 6,800

Concentration of Risk (Details)

Concentration of Risk (Details) - customer	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Revenue | Customer concentration risk
Concentration of Risk
Number of customers	2	3	3	2
Revenue | Customer concentration risk | First customer
Concentration of Risk
Percentage of concentration risk	28.00%	17.80%	18.70%	22.90%
Revenue | Customer concentration risk | Second customer
Concentration of Risk
Percentage of concentration risk	13.20%	13.60%	12.40%	10.80%
Revenue | Customer concentration risk | Third customer
Concentration of Risk
Percentage of concentration risk		13.10%	11.80%
Consolidated accounts receivable | Customer concentration risk
Concentration of Risk
Number of customers			4
Consolidated accounts receivable | Credit concentration risk
Concentration of Risk
Number of customers					2
Consolidated accounts receivable | Credit concentration risk | First customer
Concentration of Risk
Percentage of concentration risk			21.10%		21.90%
Consolidated accounts receivable | Credit concentration risk | Second customer
Concentration of Risk
Percentage of concentration risk			17.50%		11.50%
Consolidated accounts receivable | Credit concentration risk | Third customer
Concentration of Risk
Percentage of concentration risk			11.20%
Consolidated accounts receivable | Credit concentration risk | Fourth customer
Concentration of Risk
Percentage of concentration risk			10.60%

Share Repurchase (Details)

Share Repurchase (Details) $ / shares in Units, shares in Millions	9 Months Ended
	Sep. 30, 2019USD ($)$ / sharesshares
Share Repurchase
Share repurchase program common stock authorized amount	$ 35,000,000
Number of shares purchased | shares	0.9
Average cost | $ / shares	$ 15.83
Unsettled share repurchases	$ 0

Headcount-related Actions (Deta

Headcount-related Actions (Details) $ in Millions	3 Months Ended
	Sep. 30, 2019USD ($)
Headcount-related actions
Headcount-related actions expenses	$ 1
Accrued expenses	0.8
Cost of revenue
Headcount-related actions
Headcount-related actions expenses	0.5
Research and development
Headcount-related actions
Headcount-related actions expenses	0.3
Sales and marketing and general and administrative
Headcount-related actions
Headcount-related actions expenses	$ 0.1

Recent Accounting Guidance (Det

Recent Accounting Guidance (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jan. 01, 2019
Recent Accounting Guidance
Operating lease assets	$ 6,175
Lease liabilities	$ 6,118
ASU 2016-02 | Adjustment
Recent Accounting Guidance
Operating lease assets		$ 7,500
Lease liabilities		7,500
Reclassification of previously capitalized property, plant and equipment		22,100
Reclassification of prepaid transaction costs as finance lease assets		800
Increase in finance lease liability associated with the sale-leaseback		$ 800