Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 27, 2020 | Jun. 30, 2019 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Entity Registrant Name | AXCELIS TECHNOLOGIES INC | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 | 33,089,192 | ||
Entity Public Float | $ 477,385,624 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001113232 | ||
Amendment Flag | false |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue: | |||
Revenue | $ 342,958 | $ 442,575 | $ 410,561 |
Cost of revenue: | |||
Cost of revenue | 198,806 | 262,939 | 260,314 |
Gross profit | 144,152 | 179,636 | 150,247 |
Operating expenses: | |||
Research and development | 53,931 | 51,876 | 43,071 |
Sales and marketing | 34,290 | 34,608 | 28,532 |
General and administrative | 31,726 | 33,193 | 30,802 |
Total operating expenses | 119,947 | 119,677 | 102,405 |
Income from operations | 24,205 | 59,959 | 47,842 |
Other (expense) income: | |||
Interest income | 2,955 | 2,328 | 714 |
Interest expense | (5,155) | (5,110) | (5,121) |
Other, net | (1,083) | (2,472) | 396 |
Total other expense | (3,283) | (5,254) | (4,011) |
Income before income taxes | 20,922 | 54,705 | 43,831 |
Income tax provision (benefit) | 3,888 | 8,820 | (83,128) |
Net income | $ 17,034 | $ 45,885 | $ 126,959 |
Net income per share: | |||
Basic (in dollars per share) | $ 0.52 | $ 1.42 | $ 4.11 |
Diluted (in dollars per share) | $ 0.50 | $ 1.35 | $ 3.80 |
Shares used in computing net income per share: | |||
Basic weighted average common shares | 32,559 | 32,286 | 30,866 |
Diluted weighted average common shares | 33,828 | 34,002 | 33,436 |
Product | |||
Revenue: | |||
Revenue | $ 319,505 | $ 415,922 | $ 387,124 |
Cost of revenue: | |||
Cost of revenue | 175,732 | 236,446 | 234,932 |
Services | |||
Revenue: | |||
Revenue | 23,453 | 26,653 | 23,437 |
Cost of revenue: | |||
Cost of revenue | $ 23,074 | $ 26,493 | $ 25,382 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Consolidated Statements of Comprehensive Income | |||
Net income | $ 17,034 | $ 45,885 | $ 126,959 |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustments | (444) | (1,794) | 4,347 |
Amortization of actuarial loss and other adjustments from pension plan | (262) | 66 | 108 |
Total other comprehensive (loss) income | (706) | (1,728) | 4,455 |
Comprehensive income | $ 16,328 | $ 44,157 | $ 131,414 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 139,881 | $ 177,993 |
Accounts receivable, net | 83,753 | 78,727 |
Inventories, net | 140,364 | 129,000 |
Prepaid expenses and other current assets | 11,681 | 11,051 |
Total current assets | 375,679 | 396,771 |
Property, plant and equipment, net | 25,328 | 41,149 |
Operating lease assets | 5,849 | |
Finance lease assets, net | 21,880 | |
Long-term restricted cash | 6,653 | 6,909 |
Deferred income taxes | 68,060 | 71,939 |
Other assets | 44,645 | 31,673 |
Total assets | 548,094 | 548,441 |
Current liabilities: | ||
Accounts payable | 25,341 | 35,955 |
Accrued compensation | 7,631 | 19,218 |
Warranty | 2,759 | 4,819 |
Income taxes | 294 | 462 |
Deferred revenue | 24,601 | 19,513 |
Current portion of finance lease obligation | 399 | |
Other current liabilities | 7,639 | 5,030 |
Total current liabilities | 68,664 | 84,997 |
Finance lease obligation | 48,149 | 47,757 |
Long-term deferred revenue | 4,650 | 3,071 |
Other long-term liabilities | 7,204 | 4,279 |
Total liabilities | 128,667 | 140,104 |
Commitments and contingencies (Note 16) | ||
Stockholders' equity: | ||
Common stock, $0.001 par value, 75,000 shares authorized; 32,585 shares issued and outstanding at December 31, 2019; 32,558 shares issued and outstanding at December 31, 2018 | 33 | 33 |
Additional paid-in capital | 559,878 | 565,116 |
Accumulated deficit | (140,226) | (157,260) |
Accumulated other comprehensive (loss) income | (258) | 448 |
Total stockholders' equity | 419,427 | 408,337 |
Total liabilities and stockholders' equity | $ 548,094 | $ 548,441 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Dec. 31, 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 | 32,585 | 32,558 |
Common stock, shares outstanding | 32,585 | 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, 2016 | 29,518 | ||||
Balance at Dec. 31, 2016 | $ 30 | $ 535,408 | $ (331,704) | $ (2,279) | $ 201,455 |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 126,959 | 126,959 | |||
Foreign currency translation adjustments | 4,347 | 4,347 | |||
Change in pension obligation | 108 | 108 | |||
Exercise of stock options (in shares) | 2,358 | ||||
Exercise of stock options | $ 2 | 15,512 | 15,514 | ||
Issuance of shares under Employee Stock Purchase Plan (in shares) | 34 | ||||
Issuance of shares under Employee Stock Purchase Plan | 845 | 845 | |||
Issuance of restricted common shares (in shares) | 138 | ||||
Issuance of restricted common shares | (1,164) | (1,164) | |||
Stock-based compensation expense | 5,546 | 5,546 | |||
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 | 45,885 | 45,885 | |||
Foreign currency translation adjustments | (1,794) | (1,794) | |||
Change in pension obligation | 66 | 66 | |||
Exercise of stock options (in shares) | 273 | ||||
Exercise of stock options | $ 1 | 1,733 | 1,734 | ||
Issuance of shares under Employee Stock Purchase Plan (in shares) | 55 | ||||
Issuance of shares under Employee Stock Purchase Plan | 1,025 | 1,025 | |||
Issuance of restricted common shares (in shares) | 182 | ||||
Issuance of restricted common shares | (1,419) | (1,419) | |||
Stock-based compensation expense | 7,630 | 7,630 | |||
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 | |||||
Adjustment to Retained Earnings upon ASC 606 Adoption | 1,600 | 1,600 | |||
Net income | 17,034 | 17,034 | |||
Foreign currency translation adjustments | (444) | (444) | |||
Change in pension obligation | (262) | (262) | |||
Exercise of stock options (in shares) | 775 | ||||
Exercise of stock options | $ 1 | 5,104 | 5,105 | ||
Issuance of shares under Employee Stock Purchase Plan (in shares) | 54 | ||||
Issuance of shares under Employee Stock Purchase Plan | 1,016 | 1,016 | |||
Issuance of restricted common shares (in shares) | 250 | ||||
Issuance of restricted common shares | (1,633) | (1,633) | |||
Stock-based compensation expense | 8,018 | 8,018 | |||
Repurchase of common stock (in shares) | (1,052) | ||||
Repurchase of common stock | $ (1) | (17,743) | (17,744) | ||
Balance (in shares) at Dec. 31, 2019 | 32,585 | ||||
Balance at Dec. 31, 2019 | $ 33 | $ 559,878 | $ (140,226) | $ (258) | $ 419,427 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | |||
Net income | $ 17,034 | $ 45,885 | $ 126,959 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 7,880 | 5,772 | 5,002 |
Deferred income taxes | 3,304 | 11,209 | (82,085) |
Stock-based compensation expense | 8,173 | 7,784 | 5,672 |
Provision for doubtful accounts | 818 | ||
Provision for excess and obsolete inventory | 2,794 | 2,205 | 8,135 |
Changes in operating assets & liabilities: | |||
Accounts receivable | (6,002) | (3,877) | (23,573) |
Inventories | (17,953) | (10,512) | (10,567) |
Prepaid expenses and other current assets | (104) | (1,436) | (3,866) |
Accounts payable and other current liabilities | (19,150) | (703) | 25,000 |
Deferred revenue | 6,672 | 6,055 | 7,079 |
Income taxes | (162) | 196 | 14 |
Other assets and liabilities | (16,898) | (15,613) | (1,486) |
Net cash (used in) provided by operating activities | (13,594) | 46,965 | 56,284 |
Cash flows from investing activities | |||
Expenditures for property, plant and equipment and capitalized software | (11,969) | (4,715) | (7,285) |
Net cash used in investing activities | (11,969) | (4,715) | (7,285) |
Cash flows from financing activities | |||
Net settlement on restricted stock grants | (1,632) | (1,419) | (1,184) |
Repurchase of common stock | (17,744) | ||
Proceeds from Employee Stock Purchase Plan | 863 | 871 | 739 |
Proceeds from exercise of stock options | 5,105 | 1,734 | 15,515 |
Net cash (used in) provided by financing activities | (13,408) | 1,186 | 15,070 |
Effect of exchange rate changes on cash and cash equivalents | 603 | 586 | (844) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (38,368) | 44,022 | 63,225 |
Cash, cash equivalents and restricted cash at beginning of period | 184,902 | 140,880 | 77,655 |
Cash, cash equivalents and restricted cash at end of period | 146,534 | 184,902 | 140,880 |
Supplemental disclosure of cash flow information | |||
Income taxes | 1,028 | 858 | 583 |
Interest | $ 5,207 | $ 5,470 | $ 5,315 |
Nature of Business
Nature of Business | 12 Months Ended |
Dec. 31, 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 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, we provide extensive aftermarket service and support, including spare parts, equipment upgrades, used equipment and maintenance services to the semiconductor industry. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies The accompanying consolidated financial statements reflect the application of certain significant accounting policies as described in this note and elsewhere in the footnotes. (a) Basis of Presentation The accompanying consolidated financial statements include the consolidated accounts of the Company and its wholly‑owned, controlled subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Events occurring subsequent to December 31, 2019 have been evaluated for potential recognition or disclosure in the consolidated financial statements. (b) Use of Estimates The preparation of these consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. On an ongoing basis, we evaluate our estimates and judgments, including those related to revenue recognition, the realizable value of accounts receivable and inventories, valuing stock-based compensation instruments and reserves relating to tax assets and liabilities. Actual amounts could differ from these estimates. Changes in estimates are recorded in the period in which they become known. (c) Foreign Currency The functional currency for substantially all operations outside the United States is the local currency. Financial statements for these operations are translated into United States dollars at year‑end rates as to assets and liabilities and average exchange rates during the year as to revenue and expenses. The resulting translation adjustments are recorded in stockholders’ equity as an element of accumulated other comprehensive income (loss). Foreign currency transaction gains and losses are included in other income (expense) in the Consolidated Statements of Operations. For the year ended December 31, 2019 we had $0.6 million in foreign exchange loss. For the year ended December 31, 2018 we had $1.3 million in foreign exchange loss. For the year ended December 31, 2017 we had $1.1 million in foreign exchange gains. (d) Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and highly liquid investments with original maturities of ninety days or less. Cash equivalents consist primarily of money market funds, U.S. Government and Agency Securities and deposit accounts. Cash equivalents are carried on the balance sheet at fair market value. (e) Inventories Inventories are carried at the lower of cost or net realizable value, determined using the first‑in, first‑out (“FIFO”) method, or market. We periodically review our inventories and make provisions as necessary for estimated obsolescence or damaged goods to ensure values approximate lower of cost or net realizable value. The amount of such markdowns is equal to the difference between cost of inventory and the estimated market value based upon assumptions about future demands, selling prices, and market conditions. We record a provision for estimated excess inventory. The provision is determined using management’s assumptions of materials usage, based on estimates of demand and market conditions. If actual market conditions become less favorable than those projected by management, additional inventory write‑downs may be required. (f) Property, Plant and Equipment and Leased Assets Property, plant and equipment are stated at cost, less accumulated depreciation and amortization. On January 30, 2015, we sold our corporate headquarters facility. As part of this sale, we also entered into a 22-year lease agreement. We accounted for the sale leaseback transaction as a financing arrangement for financial reporting purposes. We retained the historical costs of the property and the related accumulated depreciation on our financial books within property, plant and equipment and will continue to depreciate the property for financial reporting purposes over the lesser of its remaining useful life or its initial lease term of 22 years. On January 1, 2019, we adopted Accounting Standard Update (“ASU”) No. 2016-02 “Leases.” This update requires operating lease assets and finance lease assets be classified separately from owned assets on the balance sheet. See Note 9 for further discussion. Depreciation and amortization are recorded using the straight‑line method over the estimated useful lives of the related assets as follows: Asset Classification Estimated Useful Life Land, buildings and equipment (under lease) Lesser of the lease term or estimated useful life of the asset Machinery and equipment 3 to 10 years Repairs and maintenance costs are expensed as incurred. Expenditures for renewals and betterments are capitalized. (g) Impairment of Long‑Lived Assets We record impairment losses on long-lived assets when events and circumstances indicate that these assets might not be recoverable. Recoverability is measured by a comparison of the assets’ carrying amount to their expected future undiscounted net cash flows. If such assets are considered to be impaired, the impairment is measured based on the amount by which the carrying value exceeds its fair value. We did not have any indicators of impairment during the period ending December 31, 2019. We did not record an impairment charge in the years ended December 31, 2019, 2018, or 2017. Actual performance could be materially different from our current forecasts, which could impact estimates of undiscounted cash flows and may result in the impairment of the carrying amount of the long-lived assets in the future. This could be caused by strategic decisions made in response to economic and competitive conditions, the impact of the economic environment on our customer base, or a material adverse change in our relationships with significant customers. (h) Concentration of Risk and Off‑Balance Sheet Risk Financial instruments that potentially subject us to concentrations of credit risk are principally cash equivalents and accounts receivable. Our cash equivalents are principally maintained in investment grade money‑market funds, U.S. Government and Agency Securities and deposit accounts. We have no significant off‑balance‑sheet risk such as currency exchange contracts, option contracts or other hedging arrangements. Our exposure to market risk for changes in interest rates relates primarily to cash equivalents. The primary objective of our investment activities is to preserve principal without significantly increasing risk. This is accomplished by investing in marketable investment grade securities. We do not use derivative financial instruments to manage our investment portfolio and do not expect operating results or cash flows to be affected to any significant degree by any change in market interest rates. We perform ongoing credit evaluations of our customers’ financial condition and generally require no collateral to secure accounts receivable. For selected overseas sales, we require customers to obtain letters of credit before product is shipped. We maintain an allowance for doubtful accounts based on our assessment of the collectability of accounts receivable. We review the allowance for doubtful accounts quarterly. We do not have any off‑balance sheet credit exposure related to our customers. Our customers consist of semiconductor chip manufacturers located throughout the world and net sales to our ten largest customers accounted for 74.1%, 76.9% and 73.3% of revenue in 2019, 2018 and 2017, respectively. For the year ended December 31, 2019, we had three customers representing 18.2%, 14.2% and 12.0% of total revenue, respectively. For the year ended December 31, 2018, we had two customers representing 20.1% and 12.1% of total revenue, respectively. For the year ended December 31, 2017 we had two customers representing 24.9% and 13.1% of total revenue, respectively. As of December 31, 2019, we had three customers account for 24.9%, 15.3% and 11.1% of consolidated accounts receivable, respectively. As of December 31, 2018, we had two customers account for 21.9% and 11.5% of consolidated accounts receivable, respectively. Some of the components and sub‑assemblies included in our products are obtained either from a sole source or a limited group of suppliers. Disruption to our supply source, resulting either from economic conditions or other factors, could affect our ability to deliver products to our customers. (i) Revenue Recognition Effective January 1, 2018, we adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers or (“ASC 606”). In accordance with ASC 606, we changed certain characteristics of our revenue recognition accounting policy as described below. On adoption, ASC 606 was applied only to open contracts using the modified retrospective method, where the cumulative effect of the initial application is recognized as an adjustment to opening retained earnings at January 1, 2018. Therefore, the year ended December 31, 2017 has not been adjusted and continues to be reported under FASB ASC Topic 605, Revenue Recognition , or ASC 605. Under ASC 606, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration we expect to receive in exchange for those goods or services. We measure revenue based on the consideration specified in the customer arrangement, and revenue is recognized when the performance obligations in the customer arrangement are satisfied. A performance obligation is a promise in a contract to transfer a distinct product or service to the customer. The transaction price of a contract is allocated to each distinct performance obligation based upon the relative standalone selling price for each performance obligation and recognized as revenue when, or as, the customer receives the benefit of the performance obligation. To account for and measure revenue, we apply the following five steps: 1) Identify the contract with the customer A contract with a customer exists when (i) we enter into an enforceable contract with a customer that defines each party’s rights regarding the goods or services to be transferred and identifies the related payment terms, (ii) the contract has commercial substance, and (iii) we determine that collection of substantially all consideration for goods and services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. 2) Identify the performance obligations in the contract Performance obligations promised in a contract are identified based on the goods and services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the good or service either on its own or together with other available resources, and are distinct in the context of the contract, whereby the transfer of the good or service is separately identifiable from other promises in the contract. To the extent a contract includes multiple promised goods and services, we must apply judgment to determine whether promised goods and services are capable of being distinct and distinct in the context of the contract. If these criteria are not met, the promised goods and services are accounted for as a combined performance obligation. Systems sales consist of multiple performance obligations, including the system itself and obligations that are not delivered simultaneously with the system. These undelivered obligations might include a combination of installation services, extended warranty and support and spare parts, all of which are generally covered by a single sales price. The aftermarket business includes both products and services type arrangements. Performance obligations in these contracts consist of used tools, spare parts, equipment upgrades, maintenance services and customer training. Customers who purchase new systems are provided an assurance-type warranty for one year after acceptance of the tool. For aftermarket transactions, we provide customers an assurance-type warranty for 90 days. Customers can choose to purchase extended warranty terms with enhanced support similar to a service-type warranty ranging from one to three years. In accordance with ASC 606, assurance-type warranties are not considered a performance obligation, whereas service-type warranties are. 3) Determine the transaction price The transaction price is determined based on the consideration to which we will be entitled in exchange for transferring goods and services to the customer. To the extent the transaction price includes variable consideration, we estimate the amount of variable consideration that should be included in the transaction price utilizing either the expected value method or the most likely amount method depending on the nature of the variable consideration. Variable consideration is included in the transaction price if, in our judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Any estimates, including the effect of the constraint on variable consideration, are evaluated at each reporting period for any changes. In applying this guidance, Companies must also consider whether any significant financing components exist. The transaction price for all transactions is based on the price reflected in the individual customer’s purchase order. Variable consideration has not been identified as a significant component of the transaction price for any of our transactions. For those transactions where all performance obligations will be satisfied within one year or less, we apply the practical expedient outlined in ASC 606-10-32-18. This practical expedient allows us not to adjust promised consideration for the effects of a significant financing component if we expect at contract inception that the period between when we transfer the promised good or service to a customer and when the customer pays for that good or service will be one year or less. For those transactions that are expected to be completed after one year, we have assessed that there are no significant financing components because any difference between the promised consideration and the cash selling price of the good or service is for reasons other than the provision of financing. 4) Allocate the transaction price to performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation on a relative standalone selling price basis unless the transaction price is variable and meets the criteria to be allocated entirely to a performance obligation or to a distinct service that forms part of a single performance obligation. Where required, we determine standalone selling price (SSP) for each obligation based on consideration of both market and Company specific factors, including the selling price and profit margin for similar products, the cost to produce, and the anticipated margin. For those contracts that contain multiple performance obligations (primarily systems sales, as well as some aftermarket contracts requiring both time and material inputs), we must determine the SSP. We use a cost plus margin approach in determining the SSP for any materials related performance obligations (such as upgrades, spare parts, systems). To determine the SSP for labor related performance obligations (such as the labor component of installation), we use directly observable inputs based on the standalone sale prices for these services. 5) Recognize revenue when or as we have satisfied a performance obligation We satisfy performance obligations either over time or at a point in time. Revenue is recognized over time if either 1) the customer simultaneously receives and consumes the benefits provided by the entity’s performance, 2) the entity’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced, or 3) the entity’s performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date. If the entity does not satisfy a performance obligation over time, the related performance obligation is satisfied at a point in time by transferring the control of a promised good or service to a customer. Examples of control are using the asset to produce goods or services, enhance the value of other assets or settle liabilities, and holding or selling the asset. For over time recognition, ASC 606 requires us to select a single revenue recognition method for the performance obligation that faithfully depicts our performance in transferring control of the goods and services. The guidance allows entities to choose between two methods to measure progress toward complete satisfaction of a performance obligation: Output methods - recognize revenue on the basis of direct measurements of the value to the customer of the goods or services transferred to date relative to the remaining goods or services promised under the contract (e.g. surveys of performance completed to date, appraisals of results achieved, milestones reached, time elapsed, and units produced or units delivered); and Input methods - recognize revenue on the basis of the entity’s efforts or inputs to the satisfaction of a performance obligation (e.g., resources consumed, labor hours expended, costs incurred, or time elapsed) relative to the total expected inputs to the satisfaction of that performance obligation. We have the right to consideration from a customer in an amount that corresponds directly with the value to the customer of the entity’s performance completed to date (i.e., certain aftermarket contracts), as such we have elected a practical expedient to recognize revenue in the amount to which the entity has a right to invoice for such services. Product related revenues (whether for systems or aftermarket business) are recognized at a point in time, when they are shipped or delivered, depending on shipping terms. For installation services, revenue is recognized at a point in time, once the installation of the tool is complete. The nature of the installation services is such that the customer does not simultaneously receive and consume the benefits provided by the entity’s performance, nor does performance of installation services create or enhance an asset that the customer controls. Installation services do not create an asset with an alternative use to the entity, and the entity does not have an enforceable right to payment for performance completed to date. Contract liabilities are reflected as deferred revenue on the consolidated balance sheet. Contract liabilities 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. Service-type warranties for any product are recognized over time, as these represent a stand ready obligation to service the product during the warranty period. Progress in the satisfaction of these performance obligations will be measured using an input method of time elapsed. Maintenance and service contracts are recognized over time. Progress in the satisfaction of these performance obligations will be measured using an input method of either time elapsed in the case of fixed period contracts, or labor hours expended, in the case of project-based contracts. (j) Recognizing Assets related to Recoverable Customer Contract Costs We recognize an asset related to incremental costs incurred by us to obtain a contract with a customer if we expect to recover those costs. We will recognize an asset from costs incurred to fulfill a contract only if such costs relate directly to a contract with an entity that we can specifically identify, the costs incurred will generate or enhance resources that will be used in satisfying performance obligations in the future, and the costs are expected to be recovered. Any assets recognized related to costs to obtain or fulfill a contract are amortized on a systematic basis that is consistent with the transfer to the customer of the goods or services to which the asset relates. In substantially all of our business transactions, we incur incremental costs to obtain contracts with customers, in the form of sales commissions. We maintain a commission program which awards our employees for System sales, aftermarket activity and other individual goals. Under ASC 606, an asset is amortized on a systematic basis that is consistent with the transfer to the customer of the goods or services to which the asset relates. However, ASC 606 provides a practical expedient to allow for the recognition of commission expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less. Based on the nature of our commission agreements, all commissions are expensed as incurred based upon the expectation that the amortization period would be one year or less. (k) Shipping and Handling Costs Shipping and handling costs are included in cost of revenue. (l) Stock‑Based Compensation We generally recognize compensation expense for all stock-based payments to employees and directors, including grants of stock options and restricted stock units, based on the grant‑date fair value of those stock‑based payments. For stock option awards, we use the Black‑Scholes option pricing model, adjusted for expected forfeitures. Other valuation models may be utilized in the limited circumstances where awards with market-based vesting considerations, such as the price of our common stock, or performance-based awards, are granted. Stock‑based compensation expense is recognized ratably over the requisite service period. For each stock option or restricted stock unit grant with vesting based on a combination of time, market or performance conditions, where vesting will occur if either condition is met, the related compensation costs are recognized over the shorter of the explicit service period or the derived service period. See Note 13 for additional information relating to stock‑based compensation. (m) Income Taxes We record income taxes using the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax basis, and operating loss and tax credit carryforwards. Our consolidated financial statements contain certain deferred tax assets which have arisen primarily as a result of operating losses, as well as other temporary differences between financial and tax accounting. We establish a valuation allowance if the likelihood of realization of the deferred tax assets is reduced based on an evaluation of objective verifiable evidence. Significant management judgment is required in determining our provision for income taxes, our deferred tax assets and liabilities and any valuation allowance recorded against those net deferred tax assets. We evaluate the weight of all available evidence to determine whether it is more likely than not that some portion or all of the net deferred income tax assets will not be realized. Income taxes include the largest amount of tax benefit for an uncertain tax position that is more likely than not to be sustained upon audit based on the technical merits of the tax position. Settlements with tax authorities, the expiration of statutes of limitations for particular tax positions, or obtaining new information on particular tax positions may cause a change to the effective tax rate. We recognize accrued interest related to unrecognized tax benefits as interest expense and penalties within operating expense in the consolidated statements of operations. See Note 18 for additional information relating to income taxes. (n) Computation of Net Income per Share Basic earnings per share is computed by dividing income available to common stockholders (the numerator) by the weighted‑average number of common shares outstanding (the denominator) for the period. The computation of diluted earnings per share is similar to basic earnings per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive common shares had been issued, calculated using the treasury stock method. The components of net income per share are as follows: Year ended December 31, 2019 2018 2017 (in thousands, except per share data) Net income available to common stockholders $ 17,034 $ 45,885 $ 126,959 Weighted average common shares outstanding used in computing basic income per share 32,559 32,286 30,866 Incremental options and RSUs 1,269 1,716 2,570 Weighted average common shares used in computing diluted net income per share 33,828 34,002 33,436 Net income per share Basic $ 0.52 $ 1.42 $ 4.11 Diluted $ 0.50 $ 1.35 $ 3.80 Diluted weighted average common shares outstanding does not include restricted stock units outstanding to purchase 0.2 million common equivalent shares for the period ended December 31, 2019, as their effect would have been anti-dilutive. (o) Accumulated Other Comprehensive Income (Loss) The following table presents the changes in accumulated other comprehensive income, net of tax, by component for the year ended December 31, 2019: Foreign Defined benefit currency pension plan Total (in thousands) Balance at December 31, 2018 $ 962 $ (514) $ 448 Other comprehensive loss and pension reclassification (444) (262) (706) Balance at December 31, 2019 $ 518 $ (776) $ (258) (p) Recent Accounting Guidance i. Accounting Standard Update 2016-02 on Leases Adopted 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 initial recording of additional net operating lease assets and related lease liabilities of $6.1 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. See Note 9 for further discussion. ii. Accounting Standards Update 2018-13 on Fair Value Measurements Adopted January 1, 2019 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. iii. 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. We will adopt these Updates as of January 1, 2020. The adoption is not expected to have a material impact on our results of operations or cash flows. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2019 | |
Revenue. | |
Revenue | Note 3. Revenue We design, manufacture and service ion implantation and other processing equipment used in the fabrication of semiconductor chips and sell our products to leading semiconductor chip manufacturers worldwide. We offer a complete line of high energy, high current and medium current implanters for all application requirements. In addition, we provide extensive aftermarket lifecycle products and services, including used tools, spare parts, equipment upgrades, maintenance service and customer training. Our revenue recognition policies are set forth in Section (i) of Note 2, Summary of Significant Accounting Policies. (a) Alternative Operational Revenue Categories used by Management To reflect the organization of our business operations, management reviews revenue in 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.” Below are the revenues by categories used by management for the periods covered in this report: Year ended December 31, 2019 2018 2017 (in thousands) Systems $ $ $ Aftermarket 140,387 162,187 147,873 $ $ $ (b) Economic Factors Affecting our Revenue: Geographic Breakdown of Revenue Global economic conditions have a direct impact on our revenue. We are substantially dependent on sales of our products and services to customers outside the United States. Adverse economic conditions, political instability, potential adverse tax consequences and volatility in exchange rates pose a risk that our clients may reduce, postpone or cancel spending for our products and services, which would impact our revenue. Revenue by geographic markets is determined based upon the location to which our products are shipped and where our services are performed. Revenue in our principal geographic markets is as follows: Year ended December 31, 2019 2018 2017 (in thousands) North America $ $ $ Asia Pacific Europe $ $ $ (c) Recognition of Deferred Revenue from Contract Liabilities Contract assets and contract liabilities are as follows: Year ended December 31, 2019 2018 2017 (in thousands) Balance, beginning of the period $ 22,584 $ 18,145 $ 11,009 Deferral of revenue 24,403 17,284 16,658 Recognition of deferred revenue (17,736) (12,845) (9,522) Balance, ending of the period $ 29,251 $ 22,584 $ 18,145 Contract liabilities are reflected as deferred revenue on the consolidated balance sheet. Contract liabilities relate to payments received or amounts invoiced in advance of completion of performance obligations under a contract. Contract liabilities are recognized as revenue upon the fulfillment of performance obligations. As of December 31, 2019, we had deferred revenue of $29.3 million. This represents the portion of the transaction price for contracts with customers allocated to the performance obligations that remain unsatisfied or partially unsatisfied. Short-term deferred revenue of $24.6 million as of December 31, 2019 represents performance obligations that will be satisfied within the next 12 months. This amount relates primarily to prepayments made prior to system delivery as well as to installation and non-standard warranty performance obligations for system sales. Long-term deferred revenue of $4.7 million as of December 31, 2019 relates primarily to extended warranty performance obligations that we expect to be completed within the next 24 months. The majority of our system transactions have payment terms that are 90% due upon shipment of the tool and 10% due upon installation. Aftermarket transaction payment terms are such that payment is due either within 30 or 60 days of service provided or delivery of parts. |
Cash, cash equivalents and rest
Cash, cash equivalents and restricted cash | 12 Months Ended |
Dec. 31, 2019 | |
Cash, cash equivalents and restricted cash | |
Cash, cash equivalents and restricted cash | Note 4. Cash, cash equivalents and restricted cash December 31, December 31, 2019 2018 (in thousands) Cash and cash equivalents $ $ Long-term restricted cash Total cash, cash equivalents and restricted cash $ $ As of December 31, 2019, we had $6.7 million in restricted cash which relates to a $5.9 million letter of credit associated with the security deposit for the sale leaseback transaction, a $0.7 million letter of credit relating to workers’ compensation insurance and a $0.1 million deposit relating to customs activity. |
Accounts Receivable, net
Accounts Receivable, net | 12 Months Ended |
Dec. 31, 2019 | |
Accounts Receivable, net | |
Accounts Receivable, net | Note 5. Accounts Receivable, net The components of accounts receivable are as follows: December 31, 2019 2018 (in thousands) Trade receivables $ 84,571 $ 78,727 Allowance for doubtful accounts (818) — Trade receivables, net $ 83,753 $ 78,727 We record an allowance for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. Our allowance for doubtful accounts is established based on a specific assessment of collectability of our customer accounts. If the financial condition of our customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowance may be necessary. |
Inventories, net
Inventories, net | 12 Months Ended |
Dec. 31, 2019 | |
Inventories, net | |
Inventories, net | Note 6. Inventories, net The components of inventories are as follows: December 31, 2019 2018 (in thousands) Raw materials $ 95,867 $ 91,875 Work in process 32,131 23,857 Finished goods (completed systems) 12,366 13,268 Inventories, net $ 140,364 $ 129,000 When recorded, inventory reserves are intended to 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 our products or market conditions. We regularly evaluate our ability to realize the value of inventories based on a combination of factors including the following: forecasted sales or usage, estimated product end of life dates, estimated current and future market value and new product introductions. Purchasing and usage alternatives are also explored to mitigate inventory exposure. In 2019, we recorded a net decrease of $5.7 million in inventory reserves. As of December 31, 2019 and 2018, inventories are stated net of inventory reserves of $8.2 million and $13.9 million, respectively. During the years ended December 31, 2019, 2018 and 2017, we recorded charges to cost of sales of $2.8 million, $2.2 million and $8.1 million, respectively, to reflect the lower of cost or net realizable value. We have inventory on consignment at customer locations as of December 31, 2019 and 2018, of $5.0 million and $4.6 million, respectively. |
Property, Plant and Equipment,
Property, Plant and Equipment, net | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment, net | |
Property, Plant and Equipment, net | Note 7. Property, Plant and Equipment, net The components of property, plant and equipment are as follows: December 31, 2019 2018 (in thousands) Land and buildings $ 7,365 $ 75,904 Machinery and equipment 28,732 19,982 Construction in process 4,612 6,366 Total cost 40,709 102,252 Accumulated depreciation (15,381) (61,103) Property, plant and equipment, net $ 25,328 $ 41,149 Upon the adoption of Topic 842 on January 1, 2019, $70.1 million of land and buildings and their related accumulated depreciation of $48.0 million was reclassified to finance lease assets, net on the consolidated balance sheet. See Note 9 for further discussion. Depreciation expense was $2.6 million, $3.2 million and $2.2 million for the years ended December 31, 2019, 2018 and 2017, respectively. |
Assets Manufactured for Interna
Assets Manufactured for Internal Use, net | 12 Months Ended |
Dec. 31, 2019 | |
Assets Manufactured for Internal Use, net | |
Assets Manufactured for Internal Use, net | Note 8. Assets Manufactured for Internal Use, net Assets manufactured for internal use, included in other assets, are depreciated using the straight-line method over their 10 year estimated useful life. Their components are as follows: December 31, 2019 2018 (in thousands) Internal use assets $ 56,775 $ 47,509 Construction in process 5,242 1,609 Total cost 62,017 49,118 Accumulated depreciation (19,259) (19,285) Assets manufactured for internal use, net $ 42,758 $ 29,833 These products are used for research and development, training, and customer demonstration purposes. Depreciation expense was $3.9 million, $2.6 million and $2.8 million for the years ended December 31, 2019, 2018 and 2017, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases | |
Leases | Note 9. 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 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. Upon adoption of Topic 842 on January 1, 2019, we recognized operating lease obligations 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 is at our sole discretion. For lease extensions that are reasonably certain to occur, we have included the 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: December 31, Leases Classification 2019 Assets (in thousands) Operating lease Operating lease assets $ 5,849 Finance lease Finance lease assets * 21,880 Total leased assets $ 27,729 Liabilities Current Operating Other current liabilities $ 3,144 Finance Current portion of finance lease obligation 399 Noncurrent Operating Other long-term liabilities 2,553 Finance Finance lease obligation 48,149 Total lease liabilities $ 54,245 * Finance lease assets are recorded net of accumulated depreciation of $47.4 million and include $0.7 million of prepaid financing costs as of December 31, 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 twelve months ended December 31, 2019 are as follows: Year ended December 31, Lease cost Classification 2019 Operating lease cost (in thousands) Service Cost of revenue $ 2,315 Research and development Operating expenses 313 Sales and marketing* Operating expenses 1,378 General and administrative* Operating expenses 788 Total operating lease cost $ 4,794 Finance lease cost Depreciation of leased assets Cost of revenue, R&D, Sales and marketing and G&A $ 1,348 Interest on lease liabilities Interest expense 5,155 Total finance lease cost $ 6,503 Total lease cost $ 11,297 * Sales and marketing, general and administrative expense includes short-term lease and variable lease costs of approximately $0.9 million for the twelve months ended December 31, 2019. 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) 2020 $ 5,720 $ 3,511 $ 9,231 2021 5,848 1,838 7,686 2022 5,980 637 6,617 2023 6,114 128 6,242 2024 6,252 68 6,320 Thereafter 79,653 206 79,859 Total lease payments $ 109,567 $ 6,388 $ 115,955 Less interest portion* (61,019) (691) (61,710) Finance lease and operating lease obligations $ 48,548 $ 5,697 $ 54,245 * Finance lease interest calculated using the implied interest rate; operating lease interest calculated using estimated corporate borrowing rate. December 31, Lease term and discount rate 2019 Weighted-average remaining lease term (years): Operating leases 2.4 Finance leases 17.1 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: Year ended December 31, Cash paid for amounts included in the measurement of lease liabilities 2019 (in thousands) Operating cash outflows from operating leases $ 4,794 Operating cash outflows from finance leases 5,594 Financing cash outflows from finance leases — Operating lease assets obtained in exchange for new operating lease liabilities 5,849 Finance lease assets obtained in exchange for new finance lease liabilities $ — |
Product Warranty
Product Warranty | 12 Months Ended |
Dec. 31, 2019 | |
Product Warranty | |
Product Warranty | Note 10. 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 product warranty liability are as follows: Year ended December 31, 2019 2018 2017 (in thousands) Balance at January 1 (beginning of year) $ 5,091 $ 4,502 $ 2,666 Warranties issued during the period 3,615 5,421 5,671 Settlements made during the period (5,548) (5,903) (2,603) Changes in estimate of liability for pre-existing warranties during the period 86 1,071 (1,232) Balance at December 31 (end of period) $ 3,244 $ 5,091 $ 4,502 Amount classified as current $ 2,759 $ 4,819 $ 4,112 Amount classified as long-term 485 272 390 Total warranty liability $ 3,244 $ 5,091 $ 4,502 |
Financing Arrangements
Financing Arrangements | 12 Months Ended |
Dec. 31, 2019 | |
Financing Arrangements | |
Financing Arrangements | Note 11. Financing Arrangements Sale Leaseback Obligation On January 30, 2015, we sold our corporate headquarters facility for the sale price of $48.9 million. As part of the sale, we also entered into a 22-year lease agreement with the buyer. The sale leaseback is accounted for as a financing arrangement for financial reporting and, as such, we recorded a financing obligation of $48.5 million as of December 31, 2019, $0.4 million of which is classified within current liabilities. 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. We posted a collateralized security deposit of $5.9 million in the form of an irrevocable letter of credit at the time of the closing. In October 2015, this letter of credit was cash collateralized. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Employee Benefit Plans | |
Employee Benefit Plans | Note 12. Employee Benefit Plans (a) Defined Contribution Plan We maintain the Axcelis Long-Term Investment Plan, a defined contribution plan. Eligible employees may contribute up to 35% of their compensation on a before-tax basis subject to Internal Revenue Service (“IRS”) limitations. Highly compensated employees may contribute up to 16% of their compensation on a before-tax basis subject to IRS limitations. In 2019, 2018 and 2017 we provided an employer match of 50% of employees’ pre-tax contributions on the first 6% of eligible compensation. Total related matching contribution expense was $1.9 million, $1.6 million and $1.2 million, for 2019, 2018 and 2017, respectively. (b) Other Compensation Plans We operate in foreign jurisdictions that require lump sum benefits, payable based on statutory regulations, for voluntary or involuntary termination. Where required, an annual actuarial valuation of the benefit plans is obtained. We have recorded an unfunded liability of $4.8 million and $4.3 million at December 31, 2019 and 2018, respectively, for costs associated with these compensation plans in foreign jurisdictions. The following table presents the classification of these liabilities in the Consolidated Balance Sheets: Year ended December 31, 2019 2018 (in thousands) Current: Accrued compensation $ 1,040 $ 973 Total current liabilities $ 1,040 $ 973 Long-term: Other long-term liabilities 3,753 3,327 Total liabilities $ 4,793 $ 4,300 The expense recorded in connection with these plans was $1.2 million, $1.3 million and $1.0 million during the years ended December 31, 2019, 2018 and 2017, respectively. |
Stock Award Plans and Stock Bas
Stock Award Plans and Stock Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Stock Award Plans and Stock Based Compensation | |
Stock Award Plans and Stock Based Compensation | Note 13. Stock Award Plans and Stock Based Compensation (a) Equity Incentive Plans We maintain the Axcelis Technologies, Inc. 2012 Equity Incentive Plan (the “2012 Equity Plan”), which became effective on May 2, 2012. Our 2000 Stock Plan (the “2000 Stock Plan”) expired on May 1, 2012 and no new grants may be made under that plan after that date. However, awards granted under the 2000 Stock Plan prior to the expiration remain outstanding and subject to the terms of the 2000 Stock Plan. The 2012 Equity Plan, as amended, reserves 9.5 million shares of common stock, $0.001 par value, for grant and permits the issuance of options, stock appreciation rights, restricted stock, restricted stock units, stock equivalents and awards of shares of common stock that are not subject to restrictions or forfeiture to selected employees, directors and consultants of the Company. The 2012 Equity Plan includes shares specifically approved by the stockholders of the Company. Shares that are not issued under an award (because such award expires, is terminated unexercised or is forfeited) revert back to the Plan. The reserve under the Plan is also increased by expirations and forfeitures of awards outstanding under the 2000 Stock Plan as of May 2, 2012. The term of stock options granted under these plans is specified in the award agreements. Unless a lesser term is otherwise specified by the Compensation Committee of the Company’s Board of Directors, awards under the 2012 Equity Plan will expire seven years from the date of grant. In general, all awards issued under the 2000 Stock Plan expire ten years from the date of grant. Under the terms of these stock plans, the exercise price of a stock option may not be less than the fair market value of a share of the Company’s common stock on the date of grant. Under the 2012 Equity Plan, fair market value is defined as the last reported sale price of a share of the common stock on a national securities exchange as of any applicable date, as long as the Company’s shares are traded on such exchange. Stock options granted to employees generally vest over a period of four years, while stock options granted to non‑employee members of the Company’s Board of Directors generally vest over a period of six months and, once vested, are not affected by the director’s termination of service to the Company. In limited circumstances, the Company may grant stock option awards with market-based vesting conditions, such as the Company’s common stock price, or other performance conditions. Termination of service by an employee will cause options to cease vesting as of the date of termination, and in most cases, employees will have 90 days after termination to exercise options that were vested as of the termination of employment. In general, retiring employees will have one year after termination of employment to exercise vested options. The Company settles stock option exercises with newly issued common shares. Restricted stock units granted to employees during 2019 had both service-based vesting provisions and performance-based vesting provisions. Restricted stock units granted to employees generally vest over a service period of four years, while restricted stock units granted to non‑employee members of the Company’s Board of Directors generally vest over a service period of six months. We have granted restricted stock units to executive officers and other senior employees with performance vesting conditions, which may be subject to further service-based vesting terms. Unvested restricted stock unit awards expire upon termination of service to the Company. We settle restricted stock units upon vesting with newly issued common shares. No restricted stock was granted under either stock plan during the three year period ended December 31, 2019. As of December 31, 2019, there were 2.7 million shares available for grant under the 2012 Equity Plan. No shares are available for grant under the 2000 Stock Plan. As of December 31, 2019, there were 1.5 million options outstanding under the 2012 Equity Plan and the 2000 Stock Plan, collectively, and 1.1 million unvested restricted stock units outstanding under the 2012 Stock Plan. (b) Employee Stock Purchase Plan The Employee Stock Purchase Plan (the “Purchase Plan”) provides effectively all of our employees the opportunity to purchase common stock of the Company at less than market prices. Purchases are made through payroll deductions of up to 10% of the employee’s salary as elected by the participant, subject to certain caps set forth in the Purchase Plan. Employees may purchase the Company’s common stock at 85% of its market price on the day the stock is purchased. The Purchase Plan is considered compensatory and as such, compensation expense has been recognized based on the benefit of the discounted stock price, amortized to compensation expense over each offering period of six months. Compensation expense relating to the Purchase Plan was approximately $0.2 million for the years ended December 31, 2019 and December 31, 2018 and approximately $0.1 million for the year ended December 31, 2017. As of December 31, 2019, there were a total of 0.2 million shares reserved for issuance and available for purchase under the Purchase Plan. Less than 0.1 million shares were purchased under the Purchase Plan in each of the years ended December 31, 2019, 2018 and 2017. The Purchase Plan will expire in June 2020, unless re-approved by the Board of Directors, with approval of stockholders within twelve months thereafter. (c) Valuation of Stock Options and Restricted Stock Units For the purpose of valuing stock options with service conditions, we use the Black‑Scholes option pricing model to calculate the grant‑date fair value of an award. There were no stock option awards granted in 2019, 2018 and 2017. The fair value of the Company’s restricted stock units is calculated based upon the fair market value of the Company’s stock at the date of grant. (d) Summary of Stock-based Compensation Expense We use the straight‑line attribution method to recognize expense for stock‑based awards such that the expense associated with awards is evenly recognized throughout the period. The amount of stock‑based compensation recognized is based on the value of the portion of the awards that are ultimately expected to vest. We estimate forfeitures at the time of grant and revise them, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The term “forfeitures” is distinct from “cancellations” or “expirations” and represents only the unvested portion of the surrendered stock‑based award. Based on a historical analysis, a forfeiture rate of 5% per year was applied to stock‑based awards, including executive officer awards, for the years ended December 31, 2019, 2018 and 2017. For the years ended December 31, 2019, 2018 and 2017, we recognized stock-based compensation expense of $8.2 million, $7.8 million and $5.7 million, respectively. We present the expenses related to stock-based compensation in the same expense line items as cash compensation paid to our employees. For the years ended December 31, 2019, 2018 and 2017, we used restricted stock units in our annual equity compensation program. The benefit of tax deductions in excess of recognized compensation cost is reported as an operating cash flow. Axcelis had tax deductions in excess of recognized compensation cost of $7.3 million for the year ended December 31, 2019 which resulted in a tax benefit of $1.5 million. (e) Stock Option Awards The following table summarizes the stock option activity for the year ended December 31, 2019: Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Options Price Term Value (in thousands) (years) (in thousands) Outstanding at December 31, 2018 2,285 $ 8.12 Granted — — Exercised (775) 6.59 Canceled (1) 12.04 Expired (3) 3.72 Outstanding at December 31, 2019 1,506 $ $ 22,856 Exercisable at December 31, 2019 1,496 $ $ 22,760 Options Vested or Expected to Vest at December 31, 2019(1) 1,506 $ $ 22,852 (1) In addition to the vested options, we expect a portion of the unvested options to vest at some point in the future. Options expected to vest is calculated by applying an estimated forfeiture rate to the unvested options. The total intrinsic value, which is defined as the difference between the market price at exercise and the price paid by the employee to exercise the options, for options exercised during the years ended December 31, 2019, 2018 and 2017 was $10.9 million, $4.1 million and $39.7 million, respectively. The total fair value of stock options vested during the years ended December 31, 2019, 2018 and 2017 was $0.9 million, $1.9 million and $3.1 million respectively. As of December 31, 2019, there was $0.1 million of total forfeiture‑adjusted unrecognized compensation cost related to non‑vested stock options granted under the 2012 Equity Incentive Plan and the 2000 Stock Plan. That cost is expected to be recognized over a weighted‑average period of 0.9 years. (f) Restricted Stock Units and Restricted Stock Restricted stock units represent the Company’s unfunded and unsecured promise to issue shares of the common stock at a future date, subject to the terms of the Award Agreement issued under the 2012 Equity Incentive Plan. Restricted stock unit awards granted in 2019 included time vested share awards and awards with performance vesting conditions. Restricted stock awards are issued shares of common stock that are subject to forfeiture on terms described in the Award Agreement, and may be granted under the 2012 Equity Incentive Plan. No restricted stock awards were granted, or vested, during the years ended December 31, 2019, 2018 and 2017. The fair value of a restricted stock unit and restricted stock award is charged to expense ratably over the applicable service period. The purpose of these awards is to assist in attracting and retaining highly competent employees and directors and to act as an incentive in motivating selected employees and directors to achieve long-term corporate objectives. Changes in the Company’s non‑vested restricted stock units for the year ended December 31, 2019 is as follows: Weighted-Average Grant Date Fair Shares/units Value per Share (in thousands) Outstanding at December 31, 2018 820 $ 18.76 Granted 681 17.08 Vested (343) 17.42 Forfeited (36) 18.79 Outstanding at December 31, 2019 1,122 $ 18.15 The weighted average grant-date fair value of restricted stock units granted for the years ended December 31, 2019, 2018 and 2017 was $17.08, $22.41 and $20.72, respectively. Most restricted stock units provide for net share settlement to cover the employee’s personal income tax withholding obligations on vesting of the employee’s restricted stock units. Vesting activity above reflects shares vested before net share settlement. As of December 31, 2019, there was $14.2 million of total forfeiture‑adjusted unrecognized compensation cost related to non‑vested restricted stock units granted under the 2012 Equity Incentive Plan. That cost is expected to be recognized over a weighted‑average period of 2.6 years. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity | |
Stockholders? Equity | Note 14. Stockholders’ Equity We may issue up to 75 million shares of common stock without additional shareholder approval. As of December 31, 2019 and 2018, there were 32.6 million outstanding shares of common stock. On December 3, 2019 we announced that our Board of Directors authorized an increase and extension of the share repurchase program, of up to $50 million of the Company's common stock through 2020. These shares may be purchased in the open market or through privately negotiated transactions. As of December 31, 2019, $32.3 million remained available for stock repurchases pursuant to this program. The pace of our repurchase activity will depend on factors such as our working capital needs, our cash requirements for business development, our stock price, and economic and market conditions. Our stock repurchases may be effected from time to time through open market purchases or pursuant to a Rule 10b5-1 plan. Our stock repurchase program may be accelerated, suspended, delayed or discontinued at any time. We have no obligation to repurchase shares under the authorization, and the timing and actual number and value of shares which are repurchased will depend on a number of factors, including the price of the Company's common stock, general business and market conditions, and alternative investment opportunities. We may suspend or discontinue the repurchase program at any time. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Measurements | |
Fair Value Measurements | Note 15. Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. (a) Fair Value Hierarchy The accounting guidance for fair value measurement requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is as follows: Level 1 —applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 —applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model‑derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 —applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. (b) Assets and Liabilities Measured at Fair Value 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 Company’s assets which are measured at fair value by level within the fair value hierarchy. December 31, 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 $ 92,872 $ 24,000 $ — $ 116,872 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 and non‑current assets, restricted cash, accounts payable and accrued expenses approximate fair value due to their short‑term maturities. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 16. Commitments and Contingencies (a) Lease Commitments We lease manufacturing and office facilities and certain equipment under operating and capital leases that expire through 2037. Rental expense was $4.8 million, $4.6 million and $3.9 million under operating leases for the years ended December 31, 2019, 2018 and 2017, respectively. Future minimum lease commitments on non‑cancelable operating leases for the year ended December 31, 2019 are as follows: Operating Leases (in thousands) 2020 $ 3,511 2021 1,838 2022 637 2023 128 2024 68 Thereafter 206 Total operating lease payments $ 6,388 (b) Sale Leaseback Financing Obligation In addition to the lease commitments as described above, in 2015 we entered into a 22-year lease agreement relating to our corporate headquarters in Beverly, Massachusetts. The following table relates to the cash payment schedule associated with this lease obligation as of December 31, 2019: Lease Obligation (in thousands) 2020 $ 5,720 2021 5,848 2022 5,980 2023 6,114 2024 6,252 Thereafter 79,653 Total finance lease payments $ 109,567 Less interest portion (61,019) Sale leaseback obligation $ 48,548 (c) Purchase Commitments We have contracts and purchase orders for inventory and other expenditures of $62.4 million at December 31, 2019. (d) Litigation We are not presently a party to any litigation that we believe might have a material adverse effect on our business operations. We are, from time to time, a party to litigation that arises in the normal course of our business operations. (e) 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 to 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. |
Business Segment and Geographic
Business Segment and Geographic Region Information | 12 Months Ended |
Dec. 31, 2019 | |
Business Segment and Geographic Region Information | |
Business Segment and Geographic Region Information | Note 17. Business Segment and Geographic Region Information We operate in one business segment, which is the manufacture of capital equipment for the semiconductor chip manufacturing industry. The principal market for semiconductor capital equipment is semiconductor chip manufacturers. Substantially all sales are made directly by us to our customers located in the United States, Europe and Asia Pacific. Our ion implantation systems product line includes high current, medium current and high energy implanters. Other legacy processing products include curing and thermal processing systems. In addition to new equipment, we provide post‑sales equipment service and support, including spare parts, equipment upgrades, used equipment, maintenance services and customer training. Revenue by product lines is as follows: Year ended December 31, 2019 2018 2017 (in thousands) Ion implantation systems and services $ 326,029 $ 421,747 $ 391,051 Other systems and services 16,929 20,828 19,510 Total revenue $ 342,958 $ 442,575 $ 410,561 Revenue and long‑lived assets by geographic region, based on the physical location of the operation recording the sale or the asset, are as follows: Long-Lived Revenue Assets (in thousands) 2019 United States $ 256,092 $ 67,336 Europe 28,743 — Asia Pacific 58,123 748 $ 342,958 $ 68,084 2018 United States $ 342,802 $ 70,022 Europe 29,417 — Asia Pacific 70,356 960 $ 442,575 $ 70,982 2017 United States $ 313,916 $ 56,089 Europe 26,936 — Asia Pacific 69,709 707 $ 410,561 $ 56,796 Long‑lived assets consist of property, plant and equipment, net, and assets manufactured for internal use, net. Operations in Europe and Asia Pacific consist of sales and service organizations. International revenue, which includes export sales from U.S. manufacturing facilities to foreign customers and sales by foreign subsidiaries and branches, was $306.6 million (89.4% of total revenue), $388.3 million (87.7% of total revenue) and $348.5 million (84.9% of total revenue) in 2019, 2018 and 2017, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes | |
Income Taxes | Note 18. Income Taxes Income before income taxes is as follows: Year ended December 31, 2019 2018 2017 (in thousands) United States $ 18,148 $ 52,172 $ 40,752 Foreign 2,774 2,533 3,079 Income before income taxes $ 20,922 $ 54,705 $ 43,831 Provision for income taxes is as follows: Year ended December 31, 2019 2018 2017 (in thousands) Current: United States Federal $ — $ 41 $ 430 State 5 112 32 Foreign 579 323 230 Total current 584 476 692 Deferred: Federal 3,962 8,108 (82,048) State (855) 425 (1,698) Foreign 197 (189) (74) Total deferred 3,304 8,344 (83,820) Income tax provision (benefit) $ 3,888 $ 8,820 $ (83,128) Reconciliation of income taxes at the United States Federal statutory rate to the effective income tax rate is as follows: Year ended December 31, 2019 2018 2017 (in thousands) Income taxes at the United States statutory rate $ 4,393 $ 11,488 $ 15,341 State income taxes 78 299 203 Unrecognized tax benefits (251) (345) (285) Effect of change in valuation allowance 1,492 (441) (115,831) Foreign income tax rate differentials 129 73 (312) Unremitted earnings of foreign subsidiaries — — (8,933) Stock options (1,257) (715) (10,342) Credit expirations 894 — — Repatriation of foreign earnings — — 4,556 Recognition of equity NOL's — — (1,165) Rate change 194 160 42,531 Credit generation (3,124) (3,530) (8,778) Discrete items, net 18 972 31 Other, net 1,322 859 (144) Income tax provision (benefit) $ 3,888 $ 8,820 $ (83,128) Significant components of long‑term deferred income taxes are as follows: Year ended December 31, 2019 2018 (in thousands) Deferred tax assets: Federal net operating loss carryforwards $ 39,380 $ 42,397 State net operating loss carryforwards 1,211 1,387 Foreign net operating loss carryforwards 554 641 Federal tax credit carryforwards 18,061 16,200 State tax credit carryforwards 6,837 6,489 Property, plant and equipment 10,098 5,924 Operating lease liability 503 — Accrued compensation 266 97 Inventories 2,674 3,713 Stock compensation 2,477 2,760 Warranty 689 1,090 Deferred revenue 1,086 1,004 Gross deferred tax assets 83,836 81,702 Valuation allowance (8,327) (6,835) Net deferred tax assets 75,509 74,867 Deferred tax liabilities: Intangible assets (47) (29) Right-of-use asset (5,141) — Internal Revenue Code 481(a) adjustment (412) — Other (1,849) (2,899) Gross deferred tax liabilities (7,449) (2,928) Deferred taxes, net $ 68,060 $ 71,939 Changes in tax rates and tax laws are accounted for in the period of enactment. Our deferred tax assets and liabilities are measured at the enacted tax rate expected to apply when these temporary differences are expected to be realized or settled. On December 22, 2017, the Tax Cuts and Jobs Act (“2017 Tax Act”) was signed into law and has resulted in significant changes to the U.S. corporate income tax system. The 2017 Tax Act eliminates the deferral of U.S. income tax on the historical un-repatriated earnings by imposing the Transition Toll Tax, which is a one-time mandatory deemed repatriation tax on undistributed foreign earnings. The Transition Toll Tax is assessed on the U.S. shareholder's share of the foreign corporation's accumulated foreign earnings that have not previously been taxed. Earnings in the form of cash and cash equivalents will be taxed at a rate of 15.5% and all other earnings will be taxed at a rate of 8.0%. During 2018, the provisional amount for the Toll tax was updated from $4.6 million in 2017 to $3.6 million in 2018 due to refinement of earnings and profits during 2018. We consider our accounting regarding the Transition Toll Tax to be complete. We accrued income tax liabilities of $0.3 million after utilization of foreign tax and research and development credits. The 2017 Tax Act included a federal statutory rate reduction from 35% to 21%, the elimination or reduction of certain domestic deductions and credits and limitations on the deductibility of interest expense and executive compensation. The 2017 Tax Act also transitioned international taxation from a worldwide system to a modified territorial system and includes base erosion prevention measures on non-U.S. earnings, which has the effect of subjecting certain earnings of our foreign subsidiaries to U.S. taxation as global intangible low-taxed income (“GILTI”). The tax related to GILTI was $0.6 million and $0.4 million for the years ended December 31, 2019 and 2018, respectively. We are treating GILTI as a period cost. At December 31, 2019, we had $68.1 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. At December 31, 2019, we maintain an $8.3 million valuation allowance in the U.S. against certain tax credits and state net operating losses due to the uncertainty of their realization based on long-term Company forecasts and the expiration dates on these attributes. This represents an increase of $1.5 million from the prior year. At December 31, 2019, we have federal and state net operating loss carryforwards of $209.5 million and foreign net operating loss carryforwards of $2.1 million expiring principally between 2020 and 2034. We have research and development and other tax credit carryforwards of $24.9 million at December 31, 2019 that can be used to reduce future federal and state income tax liabilities. These tax credit carryforwards expire principally between 2020 and 2039. We consider the undistributed earnings of our foreign subsidiaries as of December 31, 2019, to be indefinitely reinvested and, accordingly, no U.S. income taxes have been provided thereon. As of December 31, 2019, the amount of cash associated with indefinitely reinvested foreign earnings was approximately $9.7 million. We have not, nor do we anticipate the need to, repatriate funds to the United States to satisfy domestic liquidity needs arising in the ordinary course of business, including liquidity needs associated with our domestic debt service requirements. We and our subsidiaries file income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. We and most foreign subsidiaries are subject to income tax examinations by tax authorities for all years dating back to 2008. Our policy is to recognize interest related to unrecognized tax benefits as interest expense and penalties as operating expenses. We believe that we have appropriate support for the income tax positions taken and to be taken on our tax returns and that our accruals for tax liabilities are adequate for all open years based on an assessment of many factors including past experience and interpretations of tax law applied to the facts of each matter. At December 31, 2019, we had unrecognized tax benefits related to uncertain tax positions of approximately $9.8 million, of which approximately $9.4 million reduced the Company’s deferred tax assets and the offsetting valuation allowance and $0.4 million was recorded in other long-term liabilities. During the first quarter of 2019, the statute of limitations associated with a tax position previously taken by the Company expired. The related tax reserve of $0.2 million and accrued interest of $0.1 million that had been recorded were reversed during the twelve months ended December 31, 2019. A reconciliation of the beginning and ending balance of unrecognized tax benefits are as follows: Year ended December 31, 2019 2018 2017 (in thousands) Balance at beginning of year $ 9,127 $ 9,105 $ 6,844 Increase / (decrease) in unrecognized tax benefits as a result of tax positions taken during a prior period 215 (132) 81 Reductions to unrecognized tax benefits as a result of a lapse of the applicable statute of limitation (334) (543) (511) Increases in unrecognized tax benefits as a result of tax positions taken during the current period 791 697 2,691 Balance at end of year $ 9,799 $ 9,127 $ 9,105 Recorded as other long-term liability $ 409 $ 676 $ 1,109 Recorded as a decrease in deferred tax assets and offsetting valuation allowance 9,390 8,451 7,996 Balance at end of year $ 9,799 $ 9,127 $ 9,105 As of December 31, 2019 we had $9.8 million of unrecognized tax benefits which, if recognized would reduce the effective tax rate. |
Quarterly Results of Operations
Quarterly Results of Operations (unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Results of Operations (unaudited) | |
Quarterly Results of Operations (unaudited) | Note 19. Quarterly Results of Operations (unaudited) Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2019 2019 2019 2019 2018 2018 2018 2018 (in thousands, except per share data) Revenue $ 107,723 $ 69,453 $ 74,305 $ 91,477 $ 105,683 $ 95,374 $ 119,333 $ 122,185 Gross profit 44,316 30,581 31,749 37,506 43,567 39,913 49,000 47,156 Net income 9,712 704 556 6,062 8,463 8,838 14,669 13,915 Net income per basic share $ 0.30 $ 0.02 $ 0.02 $ 0.19 $ 0.26 $ 0.27 $ 0.46 $ 0.43 Net income per diluted share $ 0.29 $ 0.02 $ 0.02 $ 0.18 $ 0.25 $ 0.26 $ 0.43 $ 0.41 |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
Schedule II-Valuation and Qualifying Accounts | |
Schedule II-Valuation and Qualifying Accounts | Balance at Charged to Balance at Beginning of Costs and End of Period Expenses Deductions Period Year ended December 31, 2019 Allowance for doubtful accounts and returns $ — $ 818 $ — $ 818 Deferred tax valuation allowance 6,835 1,492 — 8,327 Year ended December 31, 2018 Allowance for doubtful accounts and returns $ — $ — $ 0 $ — Deferred tax valuation allowance 7,136 (441) (140) 6,835 Year ended December 31, 2017 Allowance for doubtful accounts and returns $ 77 $ — $ 77 $ — Deferred tax valuation allowance 122,966 (115,831) (1) 7,136 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies | |
Basis of Presentation | (a) Basis of Presentation The accompanying consolidated financial statements include the consolidated accounts of the Company and its wholly‑owned, controlled subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Events occurring subsequent to December 31, 2019 have been evaluated for potential recognition or disclosure in the consolidated financial statements. |
Use of Estimates | (b) Use of Estimates The preparation of these consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. On an ongoing basis, we evaluate our estimates and judgments, including those related to revenue recognition, the realizable value of accounts receivable and inventories, valuing stock-based compensation instruments and reserves relating to tax assets and liabilities. Actual amounts could differ from these estimates. Changes in estimates are recorded in the period in which they become known. |
Foreign Currency | (c) Foreign Currency The functional currency for substantially all operations outside the United States is the local currency. Financial statements for these operations are translated into United States dollars at year‑end rates as to assets and liabilities and average exchange rates during the year as to revenue and expenses. The resulting translation adjustments are recorded in stockholders’ equity as an element of accumulated other comprehensive income (loss). Foreign currency transaction gains and losses are included in other income (expense) in the Consolidated Statements of Operations. For the year ended December 31, 2019 we had $0.6 million in foreign exchange loss. For the year ended December 31, 2018 we had $1.3 million in foreign exchange loss. For the year ended December 31, 2017 we had $1.1 million in foreign exchange gains. |
Cash and Cash Equivalents | (d) Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and highly liquid investments with original maturities of ninety days or less. Cash equivalents consist primarily of money market funds, U.S. Government and Agency Securities and deposit accounts. Cash equivalents are carried on the balance sheet at fair market value. |
Inventories | (e) Inventories Inventories are carried at the lower of cost or net realizable value, determined using the first‑in, first‑out (“FIFO”) method, or market. We periodically review our inventories and make provisions as necessary for estimated obsolescence or damaged goods to ensure values approximate lower of cost or net realizable value. The amount of such markdowns is equal to the difference between cost of inventory and the estimated market value based upon assumptions about future demands, selling prices, and market conditions. We record a provision for estimated excess inventory. The provision is determined using management’s assumptions of materials usage, based on estimates of demand and market conditions. If actual market conditions become less favorable than those projected by management, additional inventory write‑downs may be required. |
Property, Plant and Equipment | (f) Property, Plant and Equipment and Leased Assets Property, plant and equipment are stated at cost, less accumulated depreciation and amortization. On January 30, 2015, we sold our corporate headquarters facility. As part of this sale, we also entered into a 22-year lease agreement. We accounted for the sale leaseback transaction as a financing arrangement for financial reporting purposes. We retained the historical costs of the property and the related accumulated depreciation on our financial books within property, plant and equipment and will continue to depreciate the property for financial reporting purposes over the lesser of its remaining useful life or its initial lease term of 22 years. On January 1, 2019, we adopted Accounting Standard Update (“ASU”) No. 2016-02 “Leases.” This update requires operating lease assets and finance lease assets be classified separately from owned assets on the balance sheet. See Note 9 for further discussion. Depreciation and amortization are recorded using the straight‑line method over the estimated useful lives of the related assets as follows: Asset Classification Estimated Useful Life Land, buildings and equipment (under lease) Lesser of the lease term or estimated useful life of the asset Machinery and equipment 3 to 10 years Repairs and maintenance costs are expensed as incurred. Expenditures for renewals and betterments are capitalized. |
Impairment of Long-Lived Assets | (g) Impairment of Long‑Lived Assets We record impairment losses on long-lived assets when events and circumstances indicate that these assets might not be recoverable. Recoverability is measured by a comparison of the assets’ carrying amount to their expected future undiscounted net cash flows. If such assets are considered to be impaired, the impairment is measured based on the amount by which the carrying value exceeds its fair value. We did not have any indicators of impairment during the period ending December 31, 2019. We did not record an impairment charge in the years ended December 31, 2019, 2018, or 2017. Actual performance could be materially different from our current forecasts, which could impact estimates of undiscounted cash flows and may result in the impairment of the carrying amount of the long-lived assets in the future. This could be caused by strategic decisions made in response to economic and competitive conditions, the impact of the economic environment on our customer base, or a material adverse change in our relationships with significant customers. |
Concentration of Risk and Off-Balance Sheet Risk | (h) Concentration of Risk and Off‑Balance Sheet Risk Financial instruments that potentially subject us to concentrations of credit risk are principally cash equivalents and accounts receivable. Our cash equivalents are principally maintained in investment grade money‑market funds, U.S. Government and Agency Securities and deposit accounts. We have no significant off‑balance‑sheet risk such as currency exchange contracts, option contracts or other hedging arrangements. Our exposure to market risk for changes in interest rates relates primarily to cash equivalents. The primary objective of our investment activities is to preserve principal without significantly increasing risk. This is accomplished by investing in marketable investment grade securities. We do not use derivative financial instruments to manage our investment portfolio and do not expect operating results or cash flows to be affected to any significant degree by any change in market interest rates. We perform ongoing credit evaluations of our customers’ financial condition and generally require no collateral to secure accounts receivable. For selected overseas sales, we require customers to obtain letters of credit before product is shipped. We maintain an allowance for doubtful accounts based on our assessment of the collectability of accounts receivable. We review the allowance for doubtful accounts quarterly. We do not have any off‑balance sheet credit exposure related to our customers. Our customers consist of semiconductor chip manufacturers located throughout the world and net sales to our ten largest customers accounted for 74.1%, 76.9% and 73.3% of revenue in 2019, 2018 and 2017, respectively. For the year ended December 31, 2019, we had three customers representing 18.2%, 14.2% and 12.0% of total revenue, respectively. For the year ended December 31, 2018, we had two customers representing 20.1% and 12.1% of total revenue, respectively. For the year ended December 31, 2017 we had two customers representing 24.9% and 13.1% of total revenue, respectively. As of December 31, 2019, we had three customers account for 24.9%, 15.3% and 11.1% of consolidated accounts receivable, respectively. As of December 31, 2018, we had two customers account for 21.9% and 11.5% of consolidated accounts receivable, respectively. Some of the components and sub‑assemblies included in our products are obtained either from a sole source or a limited group of suppliers. Disruption to our supply source, resulting either from economic conditions or other factors, could affect our ability to deliver products to our customers. |
Revenue Recognition | (i) Revenue Recognition Effective January 1, 2018, we adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers or (“ASC 606”). In accordance with ASC 606, we changed certain characteristics of our revenue recognition accounting policy as described below. On adoption, ASC 606 was applied only to open contracts using the modified retrospective method, where the cumulative effect of the initial application is recognized as an adjustment to opening retained earnings at January 1, 2018. Therefore, the year ended December 31, 2017 has not been adjusted and continues to be reported under FASB ASC Topic 605, Revenue Recognition , or ASC 605. Under ASC 606, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration we expect to receive in exchange for those goods or services. We measure revenue based on the consideration specified in the customer arrangement, and revenue is recognized when the performance obligations in the customer arrangement are satisfied. A performance obligation is a promise in a contract to transfer a distinct product or service to the customer. The transaction price of a contract is allocated to each distinct performance obligation based upon the relative standalone selling price for each performance obligation and recognized as revenue when, or as, the customer receives the benefit of the performance obligation. To account for and measure revenue, we apply the following five steps: 1) Identify the contract with the customer A contract with a customer exists when (i) we enter into an enforceable contract with a customer that defines each party’s rights regarding the goods or services to be transferred and identifies the related payment terms, (ii) the contract has commercial substance, and (iii) we determine that collection of substantially all consideration for goods and services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. 2) Identify the performance obligations in the contract Performance obligations promised in a contract are identified based on the goods and services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the good or service either on its own or together with other available resources, and are distinct in the context of the contract, whereby the transfer of the good or service is separately identifiable from other promises in the contract. To the extent a contract includes multiple promised goods and services, we must apply judgment to determine whether promised goods and services are capable of being distinct and distinct in the context of the contract. If these criteria are not met, the promised goods and services are accounted for as a combined performance obligation. Systems sales consist of multiple performance obligations, including the system itself and obligations that are not delivered simultaneously with the system. These undelivered obligations might include a combination of installation services, extended warranty and support and spare parts, all of which are generally covered by a single sales price. The aftermarket business includes both products and services type arrangements. Performance obligations in these contracts consist of used tools, spare parts, equipment upgrades, maintenance services and customer training. Customers who purchase new systems are provided an assurance-type warranty for one year after acceptance of the tool. For aftermarket transactions, we provide customers an assurance-type warranty for 90 days. Customers can choose to purchase extended warranty terms with enhanced support similar to a service-type warranty ranging from one to three years. In accordance with ASC 606, assurance-type warranties are not considered a performance obligation, whereas service-type warranties are. 3) Determine the transaction price The transaction price is determined based on the consideration to which we will be entitled in exchange for transferring goods and services to the customer. To the extent the transaction price includes variable consideration, we estimate the amount of variable consideration that should be included in the transaction price utilizing either the expected value method or the most likely amount method depending on the nature of the variable consideration. Variable consideration is included in the transaction price if, in our judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Any estimates, including the effect of the constraint on variable consideration, are evaluated at each reporting period for any changes. In applying this guidance, Companies must also consider whether any significant financing components exist. The transaction price for all transactions is based on the price reflected in the individual customer’s purchase order. Variable consideration has not been identified as a significant component of the transaction price for any of our transactions. For those transactions where all performance obligations will be satisfied within one year or less, we apply the practical expedient outlined in ASC 606-10-32-18. This practical expedient allows us not to adjust promised consideration for the effects of a significant financing component if we expect at contract inception that the period between when we transfer the promised good or service to a customer and when the customer pays for that good or service will be one year or less. For those transactions that are expected to be completed after one year, we have assessed that there are no significant financing components because any difference between the promised consideration and the cash selling price of the good or service is for reasons other than the provision of financing. 4) Allocate the transaction price to performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation on a relative standalone selling price basis unless the transaction price is variable and meets the criteria to be allocated entirely to a performance obligation or to a distinct service that forms part of a single performance obligation. Where required, we determine standalone selling price (SSP) for each obligation based on consideration of both market and Company specific factors, including the selling price and profit margin for similar products, the cost to produce, and the anticipated margin. For those contracts that contain multiple performance obligations (primarily systems sales, as well as some aftermarket contracts requiring both time and material inputs), we must determine the SSP. We use a cost plus margin approach in determining the SSP for any materials related performance obligations (such as upgrades, spare parts, systems). To determine the SSP for labor related performance obligations (such as the labor component of installation), we use directly observable inputs based on the standalone sale prices for these services. 5) Recognize revenue when or as we have satisfied a performance obligation We satisfy performance obligations either over time or at a point in time. Revenue is recognized over time if either 1) the customer simultaneously receives and consumes the benefits provided by the entity’s performance, 2) the entity’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced, or 3) the entity’s performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date. If the entity does not satisfy a performance obligation over time, the related performance obligation is satisfied at a point in time by transferring the control of a promised good or service to a customer. Examples of control are using the asset to produce goods or services, enhance the value of other assets or settle liabilities, and holding or selling the asset. For over time recognition, ASC 606 requires us to select a single revenue recognition method for the performance obligation that faithfully depicts our performance in transferring control of the goods and services. The guidance allows entities to choose between two methods to measure progress toward complete satisfaction of a performance obligation: Output methods - recognize revenue on the basis of direct measurements of the value to the customer of the goods or services transferred to date relative to the remaining goods or services promised under the contract (e.g. surveys of performance completed to date, appraisals of results achieved, milestones reached, time elapsed, and units produced or units delivered); and Input methods - recognize revenue on the basis of the entity’s efforts or inputs to the satisfaction of a performance obligation (e.g., resources consumed, labor hours expended, costs incurred, or time elapsed) relative to the total expected inputs to the satisfaction of that performance obligation. We have the right to consideration from a customer in an amount that corresponds directly with the value to the customer of the entity’s performance completed to date (i.e., certain aftermarket contracts), as such we have elected a practical expedient to recognize revenue in the amount to which the entity has a right to invoice for such services. Product related revenues (whether for systems or aftermarket business) are recognized at a point in time, when they are shipped or delivered, depending on shipping terms. For installation services, revenue is recognized at a point in time, once the installation of the tool is complete. The nature of the installation services is such that the customer does not simultaneously receive and consume the benefits provided by the entity’s performance, nor does performance of installation services create or enhance an asset that the customer controls. Installation services do not create an asset with an alternative use to the entity, and the entity does not have an enforceable right to payment for performance completed to date. Contract liabilities are reflected as deferred revenue on the consolidated balance sheet. Contract liabilities 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. Service-type warranties for any product are recognized over time, as these represent a stand ready obligation to service the product during the warranty period. Progress in the satisfaction of these performance obligations will be measured using an input method of time elapsed. Maintenance and service contracts are recognized over time. Progress in the satisfaction of these performance obligations will be measured using an input method of either time elapsed in the case of fixed period contracts, or labor hours expended, in the case of project-based contracts. |
Recognizing Assets related to Recoverable Customer Contract Costs | (j) Recognizing Assets related to Recoverable Customer Contract Costs We recognize an asset related to incremental costs incurred by us to obtain a contract with a customer if we expect to recover those costs. We will recognize an asset from costs incurred to fulfill a contract only if such costs relate directly to a contract with an entity that we can specifically identify, the costs incurred will generate or enhance resources that will be used in satisfying performance obligations in the future, and the costs are expected to be recovered. Any assets recognized related to costs to obtain or fulfill a contract are amortized on a systematic basis that is consistent with the transfer to the customer of the goods or services to which the asset relates. In substantially all of our business transactions, we incur incremental costs to obtain contracts with customers, in the form of sales commissions. We maintain a commission program which awards our employees for System sales, aftermarket activity and other individual goals. Under ASC 606, an asset is amortized on a systematic basis that is consistent with the transfer to the customer of the goods or services to which the asset relates. However, ASC 606 provides a practical expedient to allow for the recognition of commission expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less. Based on the nature of our commission agreements, all commissions are expensed as incurred based upon the expectation that the amortization period would be one year or less. |
Shipping and Handling Costs | (k) Shipping and Handling Costs Shipping and handling costs are included in cost of revenue. |
Stock-Based Compensation | (l) Stock‑Based Compensation We generally recognize compensation expense for all stock-based payments to employees and directors, including grants of stock options and restricted stock units, based on the grant‑date fair value of those stock‑based payments. For stock option awards, we use the Black‑Scholes option pricing model, adjusted for expected forfeitures. Other valuation models may be utilized in the limited circumstances where awards with market-based vesting considerations, such as the price of our common stock, or performance-based awards, are granted. Stock‑based compensation expense is recognized ratably over the requisite service period. For each stock option or restricted stock unit grant with vesting based on a combination of time, market or performance conditions, where vesting will occur if either condition is met, the related compensation costs are recognized over the shorter of the explicit service period or the derived service period. See Note 13 for additional information relating to stock‑based compensation. |
Income Taxes | (m) Income Taxes We record income taxes using the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax basis, and operating loss and tax credit carryforwards. Our consolidated financial statements contain certain deferred tax assets which have arisen primarily as a result of operating losses, as well as other temporary differences between financial and tax accounting. We establish a valuation allowance if the likelihood of realization of the deferred tax assets is reduced based on an evaluation of objective verifiable evidence. Significant management judgment is required in determining our provision for income taxes, our deferred tax assets and liabilities and any valuation allowance recorded against those net deferred tax assets. We evaluate the weight of all available evidence to determine whether it is more likely than not that some portion or all of the net deferred income tax assets will not be realized. Income taxes include the largest amount of tax benefit for an uncertain tax position that is more likely than not to be sustained upon audit based on the technical merits of the tax position. Settlements with tax authorities, the expiration of statutes of limitations for particular tax positions, or obtaining new information on particular tax positions may cause a change to the effective tax rate. We recognize accrued interest related to unrecognized tax benefits as interest expense and penalties within operating expense in the consolidated statements of operations. See Note 18 for additional information relating to income taxes. |
Computation of Net Income per Share | (n) Computation of Net Income per Share Basic earnings per share is computed by dividing income available to common stockholders (the numerator) by the weighted‑average number of common shares outstanding (the denominator) for the period. The computation of diluted earnings per share is similar to basic earnings per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive common shares had been issued, calculated using the treasury stock method. The components of net income per share are as follows: Year ended December 31, 2019 2018 2017 (in thousands, except per share data) Net income available to common stockholders $ 17,034 $ 45,885 $ 126,959 Weighted average common shares outstanding used in computing basic income per share 32,559 32,286 30,866 Incremental options and RSUs 1,269 1,716 2,570 Weighted average common shares used in computing diluted net income per share 33,828 34,002 33,436 Net income per share Basic $ 0.52 $ 1.42 $ 4.11 Diluted $ 0.50 $ 1.35 $ 3.80 Diluted weighted average common shares outstanding does not include restricted stock units outstanding to purchase 0.2 million common equivalent shares for the period ended December 31, 2019, as their effect would have been anti-dilutive. |
Accumulated Other Comprehensive Income (Loss) | (o) Accumulated Other Comprehensive Income (Loss) The following table presents the changes in accumulated other comprehensive income, net of tax, by component for the year ended December 31, 2019: Foreign Defined benefit currency pension plan Total (in thousands) Balance at December 31, 2018 $ 962 $ (514) $ 448 Other comprehensive loss and pension reclassification (444) (262) (706) Balance at December 31, 2019 $ 518 $ (776) $ (258) |
Recent Accounting Guidance | (p) Recent Accounting Guidance i. Accounting Standard Update 2016-02 on Leases Adopted 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 initial recording of additional net operating lease assets and related lease liabilities of $6.1 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. See Note 9 for further discussion. ii. Accounting Standards Update 2018-13 on Fair Value Measurements Adopted January 1, 2019 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. iii. 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. We will adopt these Updates as of January 1, 2020. The adoption is not expected to have a material impact on our results of operations or cash flows. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies | |
Schedule of estimated useful lives of the related assets | Asset Classification Estimated Useful Life Land, buildings and equipment (under lease) Lesser of the lease term or estimated useful life of the asset Machinery and equipment 3 to 10 years |
Schedule of components of net income per share | Year ended December 31, 2019 2018 2017 (in thousands, except per share data) Net income available to common stockholders $ 17,034 $ 45,885 $ 126,959 Weighted average common shares outstanding used in computing basic income per share 32,559 32,286 30,866 Incremental options and RSUs 1,269 1,716 2,570 Weighted average common shares used in computing diluted net income per share 33,828 34,002 33,436 Net income per share Basic $ 0.52 $ 1.42 $ 4.11 Diluted $ 0.50 $ 1.35 $ 3.80 |
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 (444) (262) (706) Balance at December 31, 2019 $ 518 $ (776) $ (258) |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue. | |
Schedule of revenue by discipline | Year ended December 31, 2019 2018 2017 (in thousands) Systems $ $ $ Aftermarket 140,387 162,187 147,873 $ $ $ |
Schedule of revenue by geographic markets | Year ended December 31, 2019 2018 2017 (in thousands) North America $ $ $ Asia Pacific Europe $ $ $ |
Schedule of contract assets and contract liabilities | Year ended December 31, 2019 2018 2017 (in thousands) Balance, beginning of the period $ 22,584 $ 18,145 $ 11,009 Deferral of revenue 24,403 17,284 16,658 Recognition of deferred revenue (17,736) (12,845) (9,522) Balance, ending of the period $ 29,251 $ 22,584 $ 18,145 |
Cash, cash equivalents and re_2
Cash, cash equivalents and restricted cash (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Cash, cash equivalents and restricted cash | |
Schedule of reconciliation of cash, cash equivalents and restricted cash | December 31, December 31, 2019 2018 (in thousands) Cash and cash equivalents $ $ Long-term restricted cash Total cash, cash equivalents and restricted cash $ $ |
Accounts Receivable, net (Table
Accounts Receivable, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounts Receivable, net | |
Schedule of components of accounts receivable | December 31, 2019 2018 (in thousands) Trade receivables $ 84,571 $ 78,727 Allowance for doubtful accounts (818) — Trade receivables, net $ 83,753 $ 78,727 |
Inventories, net (Tables)
Inventories, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventories, net | |
Schedule of components of inventories | December 31, 2019 2018 (in thousands) Raw materials $ 95,867 $ 91,875 Work in process 32,131 23,857 Finished goods (completed systems) 12,366 13,268 Inventories, net $ 140,364 $ 129,000 |
Property, Plant and Equipment_2
Property, Plant and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment, net | |
Schedule of components of property, plant and equipment | December 31, 2019 2018 (in thousands) Land and buildings $ 7,365 $ 75,904 Machinery and equipment 28,732 19,982 Construction in process 4,612 6,366 Total cost 40,709 102,252 Accumulated depreciation (15,381) (61,103) Property, plant and equipment, net $ 25,328 $ 41,149 |
Assets Manufactured for Inter_2
Assets Manufactured for Internal Use, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Assets Manufactured for Internal Use, net | |
Schedule of components of assets manufactured for internal use | December 31, 2019 2018 (in thousands) Internal use assets $ 56,775 $ 47,509 Construction in process 5,242 1,609 Total cost 62,017 49,118 Accumulated depreciation (19,259) (19,285) Assets manufactured for internal use, net $ 42,758 $ 29,833 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases | |
Schedule of operating and finance lease right-of-use assets and related lease obligations | December 31, Leases Classification 2019 Assets (in thousands) Operating lease Operating lease assets $ 5,849 Finance lease Finance lease assets * 21,880 Total leased assets $ 27,729 Liabilities Current Operating Other current liabilities $ 3,144 Finance Current portion of finance lease obligation 399 Noncurrent Operating Other long-term liabilities 2,553 Finance Finance lease obligation 48,149 Total lease liabilities $ 54,245 * Finance lease assets are recorded net of accumulated depreciation of $47.4 million and include $0.7 million of prepaid financing costs as of December 31, 2019. |
Schedule of lease costs | Year ended December 31, Lease cost Classification 2019 Operating lease cost (in thousands) Service Cost of revenue $ 2,315 Research and development Operating expenses 313 Sales and marketing* Operating expenses 1,378 General and administrative* Operating expenses 788 Total operating lease cost $ 4,794 Finance lease cost Depreciation of leased assets Cost of revenue, R&D, Sales and marketing and G&A $ 1,348 Interest on lease liabilities Interest expense 5,155 Total finance lease cost $ 6,503 Total lease cost $ 11,297 * Sales and marketing, general and administrative expense includes short-term lease and variable lease costs of approximately $0.9 million for the twelve months ended December 31, 2019. |
Schedule of future minimum operating and finance leases | Finance Operating Total Maturity of Lease Liabilities Leases Leases Leases (in thousands) 2020 $ 5,720 $ 3,511 $ 9,231 2021 5,848 1,838 7,686 2022 5,980 637 6,617 2023 6,114 128 6,242 2024 6,252 68 6,320 Thereafter 79,653 206 79,859 Total lease payments $ 109,567 $ 6,388 $ 115,955 Less interest portion* (61,019) (691) (61,710) Finance lease and operating lease obligations $ 48,548 $ 5,697 $ 54,245 * 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 | December 31, Lease term and discount rate 2019 Weighted-average remaining lease term (years): Operating leases 2.4 Finance leases 17.1 Weighted-average discount rate: Operating leases 4.5% Finance leases 10.5% |
Schedule of cash outflows by lease type | Year ended December 31, Cash paid for amounts included in the measurement of lease liabilities 2019 (in thousands) Operating cash outflows from operating leases $ 4,794 Operating cash outflows from finance leases 5,594 Financing cash outflows from finance leases — Operating lease assets obtained in exchange for new operating lease liabilities 5,849 Finance lease assets obtained in exchange for new finance lease liabilities $ — |
Product Warranty (Tables)
Product Warranty (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Product Warranty | |
Schedule of product warranty liability | Year ended December 31, 2019 2018 2017 (in thousands) Balance at January 1 (beginning of year) $ 5,091 $ 4,502 $ 2,666 Warranties issued during the period 3,615 5,421 5,671 Settlements made during the period (5,548) (5,903) (2,603) Changes in estimate of liability for pre-existing warranties during the period 86 1,071 (1,232) Balance at December 31 (end of period) $ 3,244 $ 5,091 $ 4,502 Amount classified as current $ 2,759 $ 4,819 $ 4,112 Amount classified as long-term 485 272 390 Total warranty liability $ 3,244 $ 5,091 $ 4,502 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Employee Benefit Plans | |
Schedule of classification of liabilities in Consolidated Balance Sheets | Year ended December 31, 2019 2018 (in thousands) Current: Accrued compensation $ 1,040 $ 973 Total current liabilities $ 1,040 $ 973 Long-term: Other long-term liabilities 3,753 3,327 Total liabilities $ 4,793 $ 4,300 |
Stock Award Plans and Stock B_2
Stock Award Plans and Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stock Award Plans and Stock Based Compensation | |
Summary of stock option activity | Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Options Price Term Value (in thousands) (years) (in thousands) Outstanding at December 31, 2018 2,285 $ 8.12 Granted — — Exercised (775) 6.59 Canceled (1) 12.04 Expired (3) 3.72 Outstanding at December 31, 2019 1,506 $ $ 22,856 Exercisable at December 31, 2019 1,496 $ $ 22,760 Options Vested or Expected to Vest at December 31, 2019(1) 1,506 $ $ 22,852 (1) In addition to the vested options, we expect a portion of the unvested options to vest at some point in the future. Options expected to vest is calculated by applying an estimated forfeiture rate to the unvested options. |
Schedule of changes in the Company's non-vested restricted stock units | Weighted-Average Grant Date Fair Shares/units Value per Share (in thousands) Outstanding at December 31, 2018 820 $ 18.76 Granted 681 17.08 Vested (343) 17.42 Forfeited (36) 18.79 Outstanding at December 31, 2019 1,122 $ 18.15 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Measurements | |
Schedule of Company's assets and liabilities by level within the fair value hierarchy | December 31, 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 $ 92,872 $ 24,000 $ — $ 116,872 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 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies | |
Schedule of future minimum operating leases | Future minimum lease commitments on non‑cancelable operating leases for the year ended December 31, 2019 are as follows: Operating Leases (in thousands) 2020 $ 3,511 2021 1,838 2022 637 2023 128 2024 68 Thereafter 206 Total operating lease payments $ 6,388 |
Schedule of future minimum finance leases | The following table relates to the cash payment schedule associated with this lease obligation as of December 31, 2019: Lease Obligation (in thousands) 2020 $ 5,720 2021 5,848 2022 5,980 2023 6,114 2024 6,252 Thereafter 79,653 Total finance lease payments $ 109,567 Less interest portion (61,019) Sale leaseback obligation $ 48,548 |
Business Segment and Geograph_2
Business Segment and Geographic Region Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Segment and Geographic Region Information | |
Schedule of revenue by product lines | Year ended December 31, 2019 2018 2017 (in thousands) Ion implantation systems and services $ 326,029 $ 421,747 $ 391,051 Other systems and services 16,929 20,828 19,510 Total revenue $ 342,958 $ 442,575 $ 410,561 |
Schedule of revenue and long-lived assets by geographic region | Long-Lived Revenue Assets (in thousands) 2019 United States $ 256,092 $ 67,336 Europe 28,743 — Asia Pacific 58,123 748 $ 342,958 $ 68,084 2018 United States $ 342,802 $ 70,022 Europe 29,417 — Asia Pacific 70,356 960 $ 442,575 $ 70,982 2017 United States $ 313,916 $ 56,089 Europe 26,936 — Asia Pacific 69,709 707 $ 410,561 $ 56,796 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes | |
Schedule of income before income taxes | Year ended December 31, 2019 2018 2017 (in thousands) United States $ 18,148 $ 52,172 $ 40,752 Foreign 2,774 2,533 3,079 Income before income taxes $ 20,922 $ 54,705 $ 43,831 |
Schedule of provision for income taxes | Year ended December 31, 2019 2018 2017 (in thousands) Current: United States Federal $ — $ 41 $ 430 State 5 112 32 Foreign 579 323 230 Total current 584 476 692 Deferred: Federal 3,962 8,108 (82,048) State (855) 425 (1,698) Foreign 197 (189) (74) Total deferred 3,304 8,344 (83,820) Income tax provision (benefit) $ 3,888 $ 8,820 $ (83,128) |
Schedule of reconciliation of income taxes at the United States Federal statutory rate to the effective income tax rate | Year ended December 31, 2019 2018 2017 (in thousands) Income taxes at the United States statutory rate $ 4,393 $ 11,488 $ 15,341 State income taxes 78 299 203 Unrecognized tax benefits (251) (345) (285) Effect of change in valuation allowance 1,492 (441) (115,831) Foreign income tax rate differentials 129 73 (312) Unremitted earnings of foreign subsidiaries — — (8,933) Stock options (1,257) (715) (10,342) Credit expirations 894 — — Repatriation of foreign earnings — — 4,556 Recognition of equity NOL's — — (1,165) Rate change 194 160 42,531 Credit generation (3,124) (3,530) (8,778) Discrete items, net 18 972 31 Other, net 1,322 859 (144) Income tax provision (benefit) $ 3,888 $ 8,820 $ (83,128) |
Schedule of significant components of current and long-term deferred income taxes | Year ended December 31, 2019 2018 (in thousands) Deferred tax assets: Federal net operating loss carryforwards $ 39,380 $ 42,397 State net operating loss carryforwards 1,211 1,387 Foreign net operating loss carryforwards 554 641 Federal tax credit carryforwards 18,061 16,200 State tax credit carryforwards 6,837 6,489 Property, plant and equipment 10,098 5,924 Operating lease liability 503 — Accrued compensation 266 97 Inventories 2,674 3,713 Stock compensation 2,477 2,760 Warranty 689 1,090 Deferred revenue 1,086 1,004 Gross deferred tax assets 83,836 81,702 Valuation allowance (8,327) (6,835) Net deferred tax assets 75,509 74,867 Deferred tax liabilities: Intangible assets (47) (29) Right-of-use asset (5,141) — Internal Revenue Code 481(a) adjustment (412) — Other (1,849) (2,899) Gross deferred tax liabilities (7,449) (2,928) Deferred taxes, net $ 68,060 $ 71,939 |
Schedule of reconciliation of the beginning and ending balance of unrecognized tax benefits | Year ended December 31, 2019 2018 2017 (in thousands) Balance at beginning of year $ 9,127 $ 9,105 $ 6,844 Increase / (decrease) in unrecognized tax benefits as a result of tax positions taken during a prior period 215 (132) 81 Reductions to unrecognized tax benefits as a result of a lapse of the applicable statute of limitation (334) (543) (511) Increases in unrecognized tax benefits as a result of tax positions taken during the current period 791 697 2,691 Balance at end of year $ 9,799 $ 9,127 $ 9,105 Recorded as other long-term liability $ 409 $ 676 $ 1,109 Recorded as a decrease in deferred tax assets and offsetting valuation allowance 9,390 8,451 7,996 Balance at end of year $ 9,799 $ 9,127 $ 9,105 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Results of Operations (unaudited) | |
Schedule of quarterly results of operations | Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2019 2019 2019 2019 2018 2018 2018 2018 (in thousands, except per share data) Revenue $ 107,723 $ 69,453 $ 74,305 $ 91,477 $ 105,683 $ 95,374 $ 119,333 $ 122,185 Gross profit 44,316 30,581 31,749 37,506 43,567 39,913 49,000 47,156 Net income 9,712 704 556 6,062 8,463 8,838 14,669 13,915 Net income per basic share $ 0.30 $ 0.02 $ 0.02 $ 0.19 $ 0.26 $ 0.27 $ 0.46 $ 0.43 Net income per diluted share $ 0.29 $ 0.02 $ 0.02 $ 0.18 $ 0.25 $ 0.26 $ 0.43 $ 0.41 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Foreign Currency (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Summary of Significant Accounting Policies | |||
Foreign exchange losses (gains) realized | $ 0.6 | $ 1.3 | $ (1.1) |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 30, 2015 | |
Impairment of Long-Lived Assets | ||||
Impairment of long-lived assets | $ 0 | $ 0 | $ 0 | |
Minimum | ||||
Property, plant and equipment | ||||
Lease term | 1 year | |||
Maximum | ||||
Property, plant and equipment | ||||
Lease term | 10 years | |||
Machinery and equipment | Minimum | ||||
Property, plant and equipment | ||||
Useful life | 3 years | |||
Machinery and equipment | Maximum | ||||
Property, plant and equipment | ||||
Useful life | 10 years | |||
Beverly Property Owner LLC | Land and buildings | Sale leaseback obligation | ||||
Property, plant and equipment | ||||
Lease term | 22 years | |||
Beverly Property Owner LLC | Buildings | Sale leaseback obligation | ||||
Property, plant and equipment | ||||
Lease term | 22 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Concentration of Risk (Details) - customer | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue | Customer concentration risk | |||
Concentration of Risk | |||
Number of customers | 3 | 2 | 2 |
Revenue | Customer concentration risk | Ten largest customers | |||
Concentration of Risk | |||
Number of customers | 10 | 10 | 10 |
Percentage of concentration risk | 74.10% | 76.90% | 73.30% |
Revenue | Customer concentration risk | First customer | |||
Concentration of Risk | |||
Percentage of concentration risk | 18.20% | 20.10% | 24.90% |
Revenue | Customer concentration risk | Second customer | |||
Concentration of Risk | |||
Percentage of concentration risk | 14.20% | 12.10% | 13.10% |
Revenue | Customer concentration risk | Third customer | |||
Concentration of Risk | |||
Percentage of concentration risk | 12.00% | ||
Consolidated accounts receivable | Credit concentration risk | |||
Concentration of Risk | |||
Number of customers | 3 | 2 | |
Consolidated accounts receivable | Credit concentration risk | First customer | |||
Concentration of Risk | |||
Percentage of concentration risk | 24.90% | 21.90% | |
Consolidated accounts receivable | Credit concentration risk | Second customer | |||
Concentration of Risk | |||
Percentage of concentration risk | 15.30% | 11.50% | |
Consolidated accounts receivable | Credit concentration risk | Third customer | |||
Concentration of Risk | |||
Percentage of concentration risk | 11.10% |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Revenue Recognition (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Product warranty period | 1 year |
Systems | |
Payment upon delivery of parts, period | 90 days |
Minimum | Aftermarket | |
Product warranty period | 1 year |
Minimum | Systems | |
Payment upon delivery of parts, period | 30 days |
Maximum | Aftermarket | |
Product warranty period | 3 years |
Maximum | Systems | |
Payment upon delivery of parts, period | 60 days |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Net Income per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Anti-dilutive common equivalent shares excluded from calculation | 200 | ||||||||||
Net income per share: | |||||||||||
Net income available to common stockholders | $ 9,712 | $ 704 | $ 556 | $ 6,062 | $ 8,463 | $ 8,838 | $ 14,669 | $ 13,915 | $ 17,034 | $ 45,885 | $ 126,959 |
Weighted average common shares outstanding used in computing basic income per share | 32,559 | 32,286 | 30,866 | ||||||||
Weighted average common shares used in computing diluted net income per share | 33,828 | 34,002 | 33,436 | ||||||||
Net income per share | |||||||||||
Basic | $ 0.30 | $ 0.02 | $ 0.02 | $ 0.19 | $ 0.26 | $ 0.27 | $ 0.46 | $ 0.43 | $ 0.52 | $ 1.42 | $ 4.11 |
Diluted | $ 0.29 | $ 0.02 | $ 0.02 | $ 0.18 | $ 0.25 | $ 0.26 | $ 0.43 | $ 0.41 | $ 0.50 | $ 1.35 | $ 3.80 |
Restricted Stock | |||||||||||
Net income per share: | |||||||||||
Incremental options and RSUs | 1,269 | 1,716 | 2,570 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Accumulated Other Comprehensive Income (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Changes in accumulated other comprehensive income, net of tax | |
Balance at December 31, 2018 | $ 448 |
Other comprehensive income and pension reclassification | (706) |
Balance at December 31, 2019 | (258) |
Foreign currency | |
Changes in accumulated other comprehensive income, net of tax | |
Balance at December 31, 2018 | 962 |
Other comprehensive income and pension reclassification | (444) |
Balance at December 31, 2019 | 518 |
Defined benefit pension plan | |
Changes in accumulated other comprehensive income, net of tax | |
Balance at December 31, 2018 | (514) |
Other comprehensive income and pension reclassification | (262) |
Balance at December 31, 2019 | $ (776) |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Recent Accounting Guidance (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Property, plant and equipment, net | $ 25,328 | $ 41,149 | |
Operating lease assets | 5,849 | ||
Operating Lease, Liability | $ 5,697 | ||
ASU 2016-02 | Adjustment | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Property, plant and equipment, net | $ (22,100) | ||
Operating lease assets | 6,100 | ||
Operating Lease, Liability | (6,100) | ||
Prepaid transaction cost | (800) | ||
Sale leaseback, increase in finance lease liability | $ 800 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue | ||||
Product warranty period | 1 year | |||
Extended warranty period | 1 year | |||
Contract liabilities | $ 29,251 | $ 22,584 | $ 18,145 | $ 11,009 |
Short-term deferred revenue | 24,601 | 19,513 | ||
Long-term deferred revenue | $ 4,650 | $ 3,071 | ||
ASC 606 Adjustments | Maximum | ||||
Disaggregation of Revenue | ||||
Unsatisfied extended warranty performance obligations, period | 24 months | |||
Systems | ||||
Disaggregation of Revenue | ||||
Payment upon shipment of tool, as a percent | 90.00% | |||
Payment upon installation, as a percent | 10.00% | |||
Payment upon delivery of parts, period | 90 days | |||
Systems | Minimum | ||||
Disaggregation of Revenue | ||||
Payment upon delivery of parts, period | 30 days | |||
Systems | Maximum | ||||
Disaggregation of Revenue | ||||
Payment upon delivery of parts, period | 60 days |
Revenue - Revenue by discipline
Revenue - Revenue by discipline & geographical areas (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue | |||
Revenue | $ 342,958 | $ 442,575 | $ 410,561 |
North America | |||
Disaggregation of Revenue | |||
Revenue | 36,206 | 54,790 | 59,825 |
Asia Pacific | |||
Disaggregation of Revenue | |||
Revenue | 251,020 | 326,191 | 296,481 |
Europe | |||
Disaggregation of Revenue | |||
Revenue | 55,732 | 61,594 | 54,255 |
Systems | |||
Disaggregation of Revenue | |||
Revenue | 202,571 | 280,388 | 262,688 |
Aftermarket | |||
Disaggregation of Revenue | |||
Revenue | $ 140,387 | $ 162,187 | $ 147,873 |
Revenue - Contract assets and l
Revenue - Contract assets and liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue. | |||
Balance, beginning of the period | $ 22,584 | $ 18,145 | $ 11,009 |
Deferral of revenue | 24,403 | 17,284 | 16,658 |
Recognition of deferred revenue | (17,736) | (12,845) | (9,522) |
Balance, ending of the period | $ 29,251 | $ 22,584 | $ 18,145 |
Cash, cash equivalents and re_3
Cash, cash equivalents and restricted cash (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Cash and cash equivalents | $ 139,881 | $ 177,993 | ||
Long-term restricted cash | 6,653 | 6,909 | ||
Total cash, cash equivalents and restricted cash | 146,534 | $ 184,902 | $ 140,880 | $ 77,655 |
Letter of credit related to workers' compensation insurance | 700 | |||
Deposit related to customs activity | 100 | |||
Sale leaseback obligation | ||||
Letter of credit associated with security deposit for leaseback transaction | 5,900 | |||
Revolving credit facility | ||||
Restricted cash which relates to support of outstanding letters of credit | 6,700 | |||
Revolving credit facility | Sale leaseback obligation | ||||
Letter of credit associated with security deposit for leaseback transaction | $ 5,900 |
Accounts Receivable, net (Detai
Accounts Receivable, net (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts Receivable, net | ||
Trade receivables | $ 84,571 | $ 78,727 |
Allowance for doubtful accounts | (818) | |
Trade receivable, net | $ 83,753 | $ 78,727 |
Inventories, net (Details)
Inventories, net (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Inventories, net | ||
Raw materials | $ 95,867 | $ 91,875 |
Work in process | 32,131 | 23,857 |
Finished goods (completed systems) | 12,366 | 13,268 |
Inventories, net | $ 140,364 | $ 129,000 |
Inventories, net - Additional I
Inventories, net - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Inventories, net additional information | |||
Charges to cost of sales due to lower of cost or market value | $ 2.8 | $ 2.2 | $ 8.1 |
Inventory on consignment at customer locations | 5 | 4.6 | |
Inventory reserves | |||
Inventories, net additional information | |||
Decrease in inventory reserve | 5.7 | ||
Inventory reserves | $ 8.2 | $ 13.9 |
Property, Plant and Equipment_3
Property, Plant and Equipment, net (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
Property, plant and equipment | ||||
Gross | $ 40,709 | $ 102,252 | ||
Accumulated depreciation | (15,381) | (61,103) | ||
Net | 25,328 | 41,149 | ||
Depreciation expense | 2,600 | 3,200 | $ 2,200 | |
Land and buildings | ||||
Property, plant and equipment | ||||
Gross | 7,365 | 75,904 | ||
Finance lease land and buildings | ||||
Property, plant and equipment | ||||
Gross | $ 70,100 | |||
Accumulated depreciation | $ (48,000) | |||
Machinery and equipment | ||||
Property, plant and equipment | ||||
Gross | 28,732 | 19,982 | ||
Construction in process | ||||
Property, plant and equipment | ||||
Gross | $ 4,612 | $ 6,366 |
Assets Manufactured for Inter_3
Assets Manufactured for Internal Use, net - Components (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Assets manufactured for internal use | |||
Cost | $ 40,709 | $ 102,252 | |
Accumulated depreciation | (15,381) | (61,103) | |
Net | 25,328 | 41,149 | |
Depreciation expense | $ 2,600 | 3,200 | $ 2,200 |
Assets Manufactured for Internal Use | |||
Assets manufactured for internal use | |||
Useful life | 10 years | ||
Cost | $ 62,017 | 49,118 | |
Accumulated depreciation | (19,259) | (19,285) | |
Net | 42,758 | 29,833 | |
Depreciation expense | 3,900 | 2,600 | $ 2,800 |
Assets Manufactured for Internal Use | Internal use assets | |||
Assets manufactured for internal use | |||
Cost | 56,775 | 47,509 | |
Assets Manufactured for Internal Use | Construction in process. | |||
Assets manufactured for internal use | |||
Cost | $ 5,242 | $ 1,609 |
Leases (Details)
Leases (Details) | 12 Months Ended |
Dec. 31, 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 | Dec. 31, 2019 | Dec. 31, 2018 |
Leases | ||
Operating lease assets | $ 5,849 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Operating lease assets | |
Finance lease assets | $ 21,880 | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Finance lease assets | |
Total leased assets | $ 27,729 | |
Operating liabilities current | $ 3,144 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other Liabilities, Current | |
Finance liabilities current | $ 399 | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other Liabilities, Current | |
Operating liabilities noncurrent | $ 2,553 | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other Liabilities, Noncurrent | |
Finance liabilities noncurrent | $ 48,149 | $ 47,757 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Finance liabilities noncurrent | |
Total lease liabilities | $ 54,245 | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent us-gaap:OtherLiabilitiesNoncurrent | |
Finance lease, accumulated depreciation | $ 47,400 | |
Prepaid financing costs | $ 700 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lease cost | |
Total operating lease cost | $ 4,794 |
Depreciation of leased assets | 1,348 |
Interest on lease liabilities | 5,155 |
Total finance lease cost | 6,503 |
Total lease cost | 11,297 |
Short-term lease and variable lease costs | 900 |
Service | |
Lease cost | |
Total operating lease cost | 2,315 |
Research and development | |
Lease cost | |
Total operating lease cost | 313 |
Sales and marketing | |
Lease cost | |
Total operating lease cost | 1,378 |
General & administrative | |
Lease cost | |
Total operating lease cost | $ 788 |
Leases - Future Minimum Cash Ou
Leases - Future Minimum Cash Outflow and Weighted-average Remaining Lease Term and Discount Rate (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Future minimum lease payments finance lease | |
2020 | $ 5,720 |
2021 | 5,848 |
2022 | 5,980 |
2023 | 6,114 |
2024 | 6,252 |
Thereafter | 79,653 |
Total lease payments | 109,567 |
Less interest portion | (61,019) |
Finance lease obligations | 48,548 |
Future minimum lease payments operating lease | |
2020 | 3,511 |
2021 | 1,838 |
2022 | 637 |
2023 | 128 |
2024 | 68 |
Thereafter | 206 |
Total lease payments | 6,388 |
Less interest portion | (691) |
Operating lease obligations | 5,697 |
Future minimum lease payments finance and operating lease | |
2020 | 9,231 |
2021 | 7,686 |
2022 | 6,617 |
2023 | 6,242 |
2024 | 6,320 |
Thereafter | 79,859 |
Total lease payments | 115,955 |
Less interest portion | (61,710) |
Total lease liabilities | $ 54,245 |
Lease term and discount rate | |
Operating leases -Weighted-average remaining lease term (in years) | 2 years 4 months 24 days |
Finance leases - Weighted-average remaining lease term (in years) | 17 years 1 month 6 days |
Operating leases - Weighted-average discount rate | 4.50% |
Finance leases - Weighted-average discount rate | 10.50% |
Finance lease term | 22 years |
Minimum | |
Lease term and discount rate | |
Operating lease term | 1 year |
Maximum | |
Lease term and discount rate | |
Operating lease term | 10 years |
Leases - Cash Flow by Lease Typ
Leases - Cash Flow by Lease Type (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases | |
Operating cash outflows from operating leases | $ 4,794 |
Operating cash outflows from finance leases | 5,594 |
Operating lease assets obtained in exchange for new operating lease liabilities | $ 5,849 |
Product Warranty (Details)
Product Warranty (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Product Warranty | ||||||
Product warranty period | 1 year | |||||
Changes in standard product warranty liability | ||||||
Balance at January 1 (beginning of year) | $ 5,091 | $ 4,502 | $ 2,666 | |||
Warranties issued during the period | 3,615 | 5,421 | 5,671 | |||
Settlements made during the period | (5,548) | (5,903) | (2,603) | |||
Changes in estimate of liability for pre-existing warranties during the period | 86 | 1,071 | (1,232) | |||
Balance at December 31 (end of period) | 3,244 | 5,091 | 4,502 | |||
Product warranty classification | ||||||
Amount classified as current | $ 2,759 | $ 4,819 | $ 4,112 | |||
Amount classified as long-term | 485 | 272 | 390 | |||
Total warranty liability | $ 3,244 | $ 5,091 | $ 4,502 | $ 3,244 | $ 5,091 | $ 4,502 |
Financing Arrangements (Details
Financing Arrangements (Details) - USD ($) $ in Thousands | Jan. 30, 2015 | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Arrangements | |||
Finance lease obligations | $ 48,548 | ||
Finance lease obligation | 48,149 | $ 47,757 | |
Sale leaseback obligation | |||
Financing Arrangements | |||
Finance lease obligations | 48,500 | ||
Sale leaseback obligation current | 400 | ||
Security deposit | $ 5,900 | ||
Beverly Property Owner LLC | Sale leaseback obligation | Buildings | |||
Financing Arrangements | |||
Sale price | $ 48,900 | ||
Lease term | 22 years |
Employee Benefit Plans - Define
Employee Benefit Plans - Defined Contribution Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Contribution Plan | |||
Employer contributed by eligible participants | 50.00% | 50.00% | 50.00% |
Pre-tax compensation contributed | 6.00% | ||
Defined contribution plan expenses | $ 1.9 | $ 1.6 | $ 1.2 |
Regular employees | |||
Defined Contribution Plan | |||
Maximum contribution per employee under the Axcelis Long-Term Investment Plan (as a percent) | 35.00% | ||
Highly compensated employees | |||
Defined Contribution Plan | |||
Maximum contribution per employee under the Axcelis Long-Term Investment Plan (as a percent) | 16.00% |
Employee Benefit Plans - Other
Employee Benefit Plans - Other Compensation Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Classification of liabilities in the Consolidated Balance Sheets | |||
Current liabilities | $ 1,040 | $ 973 | |
Other long-term liabilities | 3,753 | 3,327 | |
Total liabilities | 4,793 | 4,300 | |
Plan expenses | 1,200 | 1,300 | $ 1,000 |
Accrued compensation | |||
Classification of liabilities in the Consolidated Balance Sheets | |||
Current liabilities | $ 1,040 | $ 973 |
Stock Award Plans and Stock B_3
Stock Award Plans and Stock Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | 92 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | May 02, 2012 | |
Stock-Based Compensation | |||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | ||
Stock-Based Compensation Expense | |||||
Forfeiture rate (as a percent) | 5.00% | 5.00% | 5.00% | ||
Stock-based compensation expense | $ 8,200 | $ 7,800 | $ 5,700 | ||
Tax deductions in excess of recognized compensation cost | 7,300 | ||||
Tax benefit | $ 1,500 | ||||
Options | |||||
Granted (in shares) | 0 | 0 | 0 | ||
Shares/units | |||||
Outstanding at the beginning of the period (in shares) | 820,000 | ||||
Granted (in shares) | 681,000 | ||||
Vested (in shares) | (343,000) | ||||
Forfeited (in shares) | (36,000) | ||||
Outstanding at the end of the period (in shares) | 1,122,000 | 820,000 | 1,122,000 | ||
Weighted-Average Grant Date Fair Value per Share | |||||
Outstanding at the beginning of the period (in dollars per share) | $ 18.76 | ||||
Granted (in dollars per share) | 17.08 | ||||
Vested (in dollars per share) | 17.42 | ||||
Forfeited (in dollars per share) | 18.79 | ||||
Outstanding at the end of the period (in dollars per share) | $ 18.15 | $ 18.76 | $ 18.15 | ||
Common Stock | |||||
Employee Stock Purchase Plan | |||||
Number of shares purchased under the plan | 54,000 | 55,000 | 34,000 | ||
Options | |||||
Exercised (in shares) | (775,000) | (273,000) | (2,358,000) | ||
Employee stock purchase plan | |||||
Stock-Based Compensation | |||||
Number of shares of common stock available for future grant | 200,000 | 200,000 | |||
Employee Stock Purchase Plan | |||||
Purchase price as a percentage of the market value of a common stock on the day the stock is purchased | 85.00% | ||||
Offering period over which compensation expense is amortized | 6 months | ||||
Stock-Based Compensation Expense | |||||
Stock-based compensation expense | $ 200 | $ 200 | $ 100 | ||
Employee stock purchase plan | Maximum | |||||
Employee Stock Purchase Plan | |||||
Payroll deductions as a percentage of employee's salary | 10.00% | ||||
Number of shares purchased under the plan | 100,000 | 100,000 | 100,000 | ||
Restricted Stock Units and Restricted Stock | |||||
Weighted-Average Grant Date Fair Value per Share | |||||
Granted (in dollars per share) | $ 22.41 | $ 20.72 | |||
Restricted Stock Units and Restricted Stock | Employees | |||||
Stock-Based Compensation | |||||
Vesting period | 4 years | ||||
Restricted Stock Units and Restricted Stock | Non-employee members of Board of Directors | |||||
Stock-Based Compensation | |||||
Vesting period | 6 months | ||||
Stock Options | |||||
Options | |||||
Outstanding at the beginning of the period (in shares) | 2,285,000 | ||||
Exercised (in shares) | (775,000) | ||||
Canceled (in shares) | (1,000) | ||||
Expired (in shares) | (3,000) | ||||
Outstanding at the end of the period (in shares) | 1,506,000 | 2,285,000 | 1,506,000 | ||
Exercisable (in shares) | 1,496,000 | 1,496,000 | |||
Options Vested or Expected to Vest at the end of the period (in shares) | 1,506,000 | 1,506,000 | |||
Weighted Average Exercise Price | |||||
Outstanding at the beginning of the period (in dollars per share) | $ 8.12 | ||||
Exercised (in dollars per share) | 6.59 | ||||
Canceled (in dollars per share) | 12.04 | ||||
Expired (in dollars per share) | 3.72 | ||||
Outstanding at the end of the period (in dollars per share) | 8.92 | $ 8.12 | $ 8.92 | ||
Exercisable at the end of the period (in dollars per share) | 8.89 | 8.89 | |||
Options Vested or Expected to Vest at the end of the period (in dollars per share) | $ 8.91 | $ 8.91 | |||
Weighted Average Remaining Contractual Term | |||||
Outstanding at the end of the period | 1 year 8 months 1 day | ||||
Exercisable at the end of the period | 1 year 7 months 28 days | ||||
Options Vested or Expected to Vest at the end of the period | 1 year 8 months 9 days | ||||
Aggregate Intrinsic Value | |||||
Outstanding at the end of the period (in dollars) | $ 22,856 | $ 22,856 | |||
Exercisable at the end of the period (in dollars) | 22,760 | 22,760 | |||
Options Vested or Expected to Vest at the end of the period (in dollars) | 22,852 | 22,852 | |||
Additional disclosure | |||||
Total intrinsic value of options exercised (in dollars) | 10,900 | $ 4,100 | $ 39,700 | ||
Total fair value of stock options vested (in dollars) | 900 | $ 1,900 | $ 3,100 | ||
Total forfeiture adjusted unrecognized compensation cost (in dollars) | $ 100 | $ 100 | |||
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 10 months 24 days | ||||
Stock Options | Employees | |||||
Stock-Based Compensation | |||||
Vesting period | 4 years | ||||
Period after termination to exercise awards that were vested | 90 days | ||||
Period after termination to retiring employees to exercise vested awards | 1 year | ||||
Stock Options | Non-employee members of Board of Directors | |||||
Stock-Based Compensation | |||||
Vesting period | 6 months | ||||
Restricted Stock | |||||
Shares/units | |||||
Granted (in shares) | 0 | 0 | 0 | ||
Vested (in shares) | 0 | 0 | 0 | ||
2000 Stock Plan | |||||
Stock-Based Compensation | |||||
Awards granted (in shares) | 0 | ||||
Number of shares of common stock available for future grant | 0 | 0 | |||
2000 Stock Plan | Stock Options | |||||
Stock-Based Compensation | |||||
Expiration period | 10 years | ||||
2012 Equity Incentive Plan | |||||
Stock-Based Compensation | |||||
Number of shares of common stock originally reserved for future grant | 9,500,000 | ||||
Common stock, par value (in dollars per share) | $ 0.001 | ||||
Number of shares of common stock available for future grant | 2,700,000 | 2,700,000 | |||
2012 Equity Incentive Plan | Restricted Stock Units and Restricted Stock | |||||
Additional disclosure | |||||
Total forfeiture adjusted unrecognized compensation cost (in dollars) | $ 14,200 | $ 14,200 | |||
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 2 years 7 months 6 days | ||||
2012 Equity Incentive Plan | Stock Options | |||||
Stock-Based Compensation | |||||
Expiration period | 7 years | ||||
2012 Equity Incentive Plan | Restricted Stock | |||||
Shares/units | |||||
Granted (in shares) | 0 | 0 | 0 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) shares in Thousands, $ in Millions | Dec. 31, 2019 | Dec. 03, 2019 | Dec. 31, 2018 |
Stockholders' Equity | |||
Number of common stock authorized | 75,000 | 75,000 | |
Number of common stock outstanding | 32,585 | 32,558 | |
Stock repurchase program, remaining authorized repurchase amount | $ 32.3 | ||
Maximum | |||
Stockholders' Equity | |||
Share repurchase program common stock authorized amount | $ 50 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Recurring - Money market funds, US Government Securities and Agency Investments - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Total | ||
Fair Value Measurements | ||
Money market funds, U.S. Government Securities and Agency Investments | $ 116,872 | $ 160,210 |
Level 1 | ||
Fair Value Measurements | ||
Money market funds, U.S. Government Securities and Agency Investments | 92,872 | 138,510 |
Level 2 | ||
Fair Value Measurements | ||
Money market funds, U.S. Government Securities and Agency Investments | $ 24,000 | $ 21,700 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 30, 2015 | |
Leases, Operating [Abstract] | ||||
Rental expense under operating leases | $ 4,800 | |||
Rental expense under operating leases | $ 4,600 | $ 3,900 | ||
Future minimum lease payments operating lease | ||||
2020 | 3,511 | |||
2021 | 1,838 | |||
2022 | 637 | |||
2023 | 128 | |||
2024 | 68 | |||
Thereafter | 206 | |||
Total lease payments | 109,567 | |||
Future minimum lease payments finance lease | ||||
2020 | 5,720 | |||
2021 | 5,848 | |||
2022 | 5,980 | |||
2023 | 6,114 | |||
2024 | 6,252 | |||
Thereafter | 79,653 | |||
Total lease payments | 109,567 | |||
Less interest portion | (61,019) | |||
Finance Lease, Liability, Total | 48,548 | |||
Purchase Commitments | ||||
Contracts and purchase orders for inventory and other expenditures | $ 62,400 | |||
Sale leaseback obligation | Land and buildings | Beverly Property Owner LLC | ||||
Purchase Commitments | ||||
Lease term | 22 years |
Business Segment and Geograph_3
Business Segment and Geographic Region Information - Number of Segments (Details) | 12 Months Ended |
Dec. 31, 2019segment | |
Business Segment and Geographic Region Information | |
Number of business segments | 1 |
Business Segment and Geograph_4
Business Segment and Geographic Region Information - Revenue by Product Line (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue by product lines | |||||||||||
Revenue | $ 107,723 | $ 69,453 | $ 74,305 | $ 91,477 | $ 105,683 | $ 95,374 | $ 119,333 | $ 122,185 | $ 342,958 | $ 442,575 | $ 410,561 |
Ion implantation systems and services | |||||||||||
Revenue by product lines | |||||||||||
Revenue | 326,029 | 421,747 | 391,051 | ||||||||
Other systems and services | |||||||||||
Revenue by product lines | |||||||||||
Revenue | $ 16,929 | $ 20,828 | $ 19,510 |
Business Segment and Geograph_5
Business Segment and Geographic Region Information - Revenue and Long-Lived Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue and long-lived assets by geographic region | |||||||||||
Revenue | $ 107,723 | $ 69,453 | $ 74,305 | $ 91,477 | $ 105,683 | $ 95,374 | $ 119,333 | $ 122,185 | $ 342,958 | $ 442,575 | $ 410,561 |
Long-Lived Assets | 68,084 | 70,982 | 68,084 | 70,982 | 56,796 | ||||||
United States. | |||||||||||
Revenue and long-lived assets by geographic region | |||||||||||
Revenue | 256,092 | 342,802 | 313,916 | ||||||||
Long-Lived Assets | 67,336 | 70,022 | 67,336 | 70,022 | 56,089 | ||||||
Europe | |||||||||||
Revenue and long-lived assets by geographic region | |||||||||||
Revenue | 28,743 | 29,417 | 26,936 | ||||||||
Asia Pacific | |||||||||||
Revenue and long-lived assets by geographic region | |||||||||||
Revenue | 58,123 | 70,356 | 69,709 | ||||||||
Long-Lived Assets | $ 748 | $ 960 | 748 | 960 | 707 | ||||||
International | Revenue | Geographic concentration risk | |||||||||||
Revenue and long-lived assets by geographic region | |||||||||||
Revenue | $ 306,600 | $ 388,300 | $ 348,500 | ||||||||
Percentage of revenue | 89.40% | 87.70% | 84.90% |
Income Taxes - Tax Effects (Det
Income Taxes - Tax Effects (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income (loss) before income taxes | |||
United States | $ 18,148 | $ 52,172 | $ 40,752 |
Foreign | 2,774 | 2,533 | 3,079 |
Income before income taxes | 20,922 | 54,705 | 43,831 |
Current: | |||
Federal | 41 | 430 | |
State | 5 | 112 | 32 |
Foreign | 579 | 323 | 230 |
Total current | 584 | 476 | 692 |
Deferred: | |||
Federal | 3,962 | 8,108 | (82,048) |
State | (855) | 425 | (1,698) |
Foreign | 197 | (189) | (74) |
Total deferred | 3,304 | 8,344 | (83,820) |
Income tax provision (benefit) | 3,888 | 8,820 | (83,128) |
Reconciliation of income taxes at the United States Federal statutory rate to the effective income tax rate | |||
Income taxes at the United States statutory rate | 4,393 | 11,488 | 15,341 |
State income taxes | 78 | 299 | 203 |
Unrecognized tax benefits | (251) | (345) | (285) |
Effect of change in valuation allowance | 1,492 | (441) | (115,831) |
Foreign income tax rate differentials | 129 | 73 | (312) |
Unremitted earnings of foreign subsidiaries | (8,933) | ||
Stock options | (1,257) | (715) | (10,342) |
Credit expirations | 894 | ||
Repatriation of foreign earnings | 4,556 | ||
Recognition of equity NOL's | (1,165) | ||
Rate change | 194 | 160 | 42,531 |
Credit generation | (3,124) | (3,530) | (8,778) |
Discrete items, net | 18 | 972 | 31 |
Other, net | 1,322 | 859 | (144) |
Income tax provision (benefit) | 3,888 | 8,820 | $ (83,128) |
Deferred tax assets: | |||
Federal net operating loss carryforwards | 39,380 | 42,397 | |
State net operating loss carryforwards | 1,211 | 1,387 | |
Foreign net operating loss carryforwards | 554 | 641 | |
Federal tax credit carryforwards | 18,061 | 16,200 | |
State tax credit carryforwards | 6,837 | 6,489 | |
Property, plant and equipment | 10,098 | 5,924 | |
Operating lease liability | 503 | ||
Accrued compensation | 266 | 97 | |
Inventories | 2,674 | 3,713 | |
Stock compensation | 2,477 | 2,760 | |
Warranty | 689 | 1,090 | |
Deferred revenue | 1,086 | 1,004 | |
Gross deferred tax assets | 83,836 | 81,702 | |
Valuation allowance | (8,327) | (6,835) | |
Net deferred tax assets | 75,509 | 74,867 | |
Deferred tax liabilities: | |||
Intangible assets | (47) | (29) | |
Right-of-use asset | (5,141) | ||
Internal Revenue Code 481(a) adjustment | (412) | ||
Other | (1,849) | (2,899) | |
Gross deferred tax liabilities | (7,449) | (2,928) | |
Deferred taxes, net | $ 68,060 | $ 71,939 |
Income Taxes - Tax Cuts and Job
Income Taxes - Tax Cuts and Jobs Act (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes | |||
Percentage of tax on earnings in the form of cash and cash equivalents | 15.50% | ||
Percentage of tax on earnings other than in the form of cash and cash equivalents | 8.00% | ||
Provisional Toll tax | $ 3,600 | $ 4,600 | |
Accrued income tax liabilities | $ 300 | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% | |
Tax related to GILTI | $ 600 | 400 | |
Deferred tax assets | 68,060 | 71,939 | |
Deferred tax assets valuation allowance | 8,327 | $ 6,835 | |
Increase in valuation allowance | $ 1,500 |
Income Taxes - Operating Loss C
Income Taxes - Operating Loss Carryforwards (Details) $ in Millions | Dec. 31, 2019USD ($) |
Federal and state | |
Operating loss carryforwards | |
Net operating loss carryforwards | $ 209.5 |
Foreign | |
Operating loss carryforwards | |
Net operating loss carryforwards | $ 2.1 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Tax Credit Carryforward [Line Items] | ||||
Cash associated with indefinitely reinvested foreign earnings | $ 9,700 | |||
Unrecognized tax benefits related to uncertain tax positions | 9,799 | $ 9,127 | $ 9,105 | $ 6,844 |
Recorded as a decrease in deferred tax assets and offsetting valuation allowance | 9,390 | 8,451 | 7,996 | |
Unrecognized Tax Benefits Recorded as Other Long Term Liability | 409 | 676 | 1,109 | |
Reversal of tax reserve | 334 | $ 543 | $ 511 | |
Unrecognized tax benefits | 9,800 | |||
Tax Reserve Member | ||||
Tax Credit Carryforward [Line Items] | ||||
Reversal of tax reserve | 200 | |||
Unrecognized Tax Benefits Reserve Accrued Interest Member | ||||
Tax Credit Carryforward [Line Items] | ||||
Reversal of tax reserve | 100 | |||
Research and development and other tax credit carryforwards | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax credit carryforwards | $ 24,900 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of the beginning and ending balance of unrecognized tax benefits | ||||||
Balance at beginning of year | $ 9,127 | $ 9,105 | $ 6,844 | |||
Increase in unrecognized tax benefits as a result of tax positions taken during a prior period | 215 | 81 | ||||
Decrease in unrecognized tax benefits as a result of tax positions taken during a prior period | (132) | |||||
Reductions to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations | (334) | (543) | (511) | |||
Increases in unrecognized tax benefits as a result of tax positions taken during the current period | 791 | 697 | 2,691 | |||
Balance at end of year | 9,799 | 9,127 | 9,105 | |||
Recorded as other long-term liability | $ 409 | $ 676 | $ 1,109 | |||
Recorded as a decrease in deferred tax assets and offsetting valuation allowance | 9,390 | 8,451 | 7,996 | |||
Unrecognized tax benefits | $ 9,799 | $ 9,127 | $ 9,105 | $ 9,799 | $ 9,127 | $ 9,105 |
Quarterly Results of Operatio_3
Quarterly Results of Operations (unaudited) - Results (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Results of Operations (unaudited) | |||||||||||
Revenue | $ 107,723 | $ 69,453 | $ 74,305 | $ 91,477 | $ 105,683 | $ 95,374 | $ 119,333 | $ 122,185 | $ 342,958 | $ 442,575 | $ 410,561 |
Gross profit | 44,316 | 30,581 | 31,749 | 37,506 | 43,567 | 39,913 | 49,000 | 47,156 | 144,152 | 179,636 | 150,247 |
Net income | $ 9,712 | $ 704 | $ 556 | $ 6,062 | $ 8,463 | $ 8,838 | $ 14,669 | $ 13,915 | $ 17,034 | $ 45,885 | $ 126,959 |
Net income per basic share (in dollars per share) | $ 0.30 | $ 0.02 | $ 0.02 | $ 0.19 | $ 0.26 | $ 0.27 | $ 0.46 | $ 0.43 | $ 0.52 | $ 1.42 | $ 4.11 |
Net income per diluted share (in dollars per share) | $ 0.29 | $ 0.02 | $ 0.02 | $ 0.18 | $ 0.25 | $ 0.26 | $ 0.43 | $ 0.41 | $ 0.50 | $ 1.35 | $ 3.80 |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for doubtful accounts and returns | |||
Changes in Valuation and Qualifying Accounts | |||
Balance at Beginning of Period | $ 77 | ||
Charged to Costs and Expenses | $ 818 | ||
Deductions | $ 0 | 77 | |
Balance at End of Period | 818 | ||
Deferred tax valuation allowance | |||
Changes in Valuation and Qualifying Accounts | |||
Balance at Beginning of Period | 6,835 | 7,136 | 122,966 |
Charged to Costs and Expenses | 1,492 | (441) | (115,831) |
Deductions | (140) | (1) | |
Balance at End of Period | $ 8,327 | $ 6,835 | $ 7,136 |