Axcelis (ACLS) 10-Q6 Aug 212021 Q2 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2021	Aug. 03, 2021
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2021
Entity File Number	000-30941
Entity Registrant Name	AXCELIS TECHNOLOGIES INC
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	34-1818596
Entity Address, Address Line One	108 Cherry Hill Drive
Entity Address, City or Town	Beverly
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	01915
City Area Code	978
Local Phone Number	787-4000
Title of 12(b) Security	Common Stock, $0.001 par value
Trading Symbol	ACLS
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		33,574,743
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001113232
Amendment Flag	false

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Revenue:
Revenue	$ 147,274	$ 122,965	$ 280,050	$ 241,956
Cost of revenue:
Cost of revenue	83,260	71,066	159,601	144,508
Gross profit	64,014	51,899	120,449	97,448
Operating expenses:
Research and development	16,623	16,040	32,308	30,646
Sales and marketing	12,177	9,437	22,564	17,641
General and administrative	11,217	10,041	21,230	19,077
Total operating expenses	40,017	35,518	76,102	67,364
Income from operations	23,997	16,381	44,347	30,084
Other (expense) income:
Interest income	40	70	73	552
Interest expense	(1,274)	(1,299)	(2,303)	(2,602)
Other, net	(15)	421	(1,168)	(199)
Total other expense	(1,249)	(808)	(3,398)	(2,249)
Income before income taxes	22,748	15,573	40,949	27,835
Income tax provision	3,842	2,271	5,563	3,312
Net income	$ 18,906	$ 13,302	$ 35,386	$ 24,523
Net income per share:
Basic	$ 0.56	$ 0.40	$ 1.05	$ 0.74
Diluted	$ 0.55	$ 0.39	$ 1.03	$ 0.72
Shares used in computing net income per share:
Basic weighted average common shares	33,677	33,116	33,696	32,998
Diluted weighted average common shares	34,311	33,958	34,473	34,023
Product
Revenue:
Revenue	$ 140,156	$ 117,194	$ 266,765	$ 229,327
Cost of revenue:
Cost of revenue	76,688	65,519	147,022	132,691
Services
Revenue:
Revenue	7,118	5,771	13,285	12,629
Cost of revenue:
Cost of revenue	$ 6,572	$ 5,547	$ 12,579	$ 11,817

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Consolidated Statements of Comprehensive Income
Net income	$ 18,906	$ 13,302	$ 35,386	$ 24,523
Other comprehensive income (loss):
Foreign currency translation adjustments	552	836	(820)	(276)
Amortization of actuarial loss and other adjustments from pension plan, net of tax	34	57	54	114
Other comprehensive income (loss):	586	893	(766)	(162)
Comprehensive income	$ 19,492	$ 14,195	$ 34,620	$ 24,361

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 219,731	$ 203,479
Accounts receivable, net	79,544	86,865
Inventories, net	192,321	161,076
Prepaid expenses and other current assets	22,535	19,371
Total current assets	514,131	470,791
Property, plant and equipment, net	30,683	29,840
Operating lease assets	7,626	4,542
Finance lease assets, net	19,889	20,544
Long-term restricted cash	755	753
Deferred income taxes	51,386	57,851
Other assets	36,170	40,303
Total assets	660,640	624,624
Current liabilities:
Accounts payable	40,695	24,013
Accrued compensation	14,906	24,562
Warranty	4,690	4,280
Income taxes	622	654
Deferred revenue	34,112	21,221
Current portion of finance lease obligation	864	756
Other current liabilities	10,585	8,945
Total current liabilities	106,474	84,431
Long-term finance lease obligation	46,923	47,393
Long-term deferred revenue	1,406	1,837
Other long-term liabilities	11,735	9,361
Total liabilities	166,538	143,022
Commitments and contingencies (Note 16)
Stockholders? equity:
Common stock, $0.001 par value, 75,000 shares authorized; 33,679 shares issued and outstanding at June 30, 2021; 33,633 shares issued and outstanding at December 31, 2020	34	34
Additional paid-in capital	561,680	570,102
Accumulated deficit	(70,281)	(91,969)
Accumulated other comprehensive income	2,669	3,435
Total stockholders? equity	494,102	481,602
Total liabilities and stockholders? equity	$ 660,640	$ 624,624

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Jun. 30, 2021	Dec. 31, 2020
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	33,657	33,633
Common stock, shares outstanding	33,657	33,633

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, 2019	32,585
Balance at Dec. 31, 2019	$ 33	$ 559,878	$ (140,226)	$ (258)	$ 419,427
Increase (Decrease) in Stockholders' Equity
Net income			11,221		11,221
Foreign currency translation adjustments				(1,112)	(1,112)
Change in pension obligation, net of tax				57	57
Exercise of stock options (in shares)	540
Exercise of stock options	$ 1	4,498			4,499
Issuance of shares under Employee Stock Purchase Plan (in shares)	1
Issuance of shares under Employee Stock Purchase Plan		19			19
Issuance of restricted common shares (in shares)	69
Issuance of restricted common shares		(1,162)			(1,162)
Stock-based compensation expense		1,724			1,724
Repurchase of common stock (in shares)	(358)
Repurchase of common stock	$ (1)	(5,775)	(1,725)		(7,501)
Balance (in shares) at Mar. 31, 2020	32,837
Balance at Mar. 31, 2020	$ 33	559,182	(130,730)	(1,313)	427,172
Balance (in shares) at Dec. 31, 2019	32,585
Balance at Dec. 31, 2019	$ 33	559,878	(140,226)	(258)	419,427
Increase (Decrease) in Stockholders' Equity
Net income					24,523
Foreign currency translation adjustments					(276)
Change in pension obligation, net of tax					114
Balance (in shares) at Jun. 30, 2020	33,433
Balance at Jun. 30, 2020	$ 33	562,839	(117,428)	(420)	445,024
Balance (in shares) at Mar. 31, 2020	32,837
Balance at Mar. 31, 2020	$ 33	559,182	(130,730)	(1,313)	427,172
Increase (Decrease) in Stockholders' Equity
Net income			13,302		13,302
Foreign currency translation adjustments				836	836
Change in pension obligation, net of tax				57	57
Exercise of stock options (in shares)	343
Exercise of stock options		2,783			2,783
Issuance of shares under Employee Stock Purchase Plan (in shares)	21
Issuance of shares under Employee Stock Purchase Plan		490			490
Issuance of restricted common shares (in shares)	232
Issuance of restricted common shares		(2,698)			(2,698)
Stock-based compensation expense		3,082			3,082
Balance (in shares) at Jun. 30, 2020	33,433
Balance at Jun. 30, 2020	$ 33	562,839	(117,428)	(420)	445,024
Balance (in shares) at Dec. 31, 2020	33,633
Balance at Dec. 31, 2020	$ 34	570,102	(91,969)	3,435	481,602
Increase (Decrease) in Stockholders' Equity
Net income			16,480		16,480
Foreign currency translation adjustments				(1,372)	(1,372)
Change in pension obligation, net of tax				20	20
Exercise of stock options (in shares)	268
Exercise of stock options		2,512			2,512
Issuance of restricted common shares (in shares)	81
Issuance of restricted common shares		(2,354)			(2,354)
Stock-based compensation expense		2,407			2,407
Repurchase of common stock (in shares)	(303)
Repurchase of common stock		(5,468)	(6,167)		(11,635)
Balance (in shares) at Mar. 31, 2021	33,679
Balance at Mar. 31, 2021	$ 34	567,199	(81,656)	2,083	487,660
Balance (in shares) at Dec. 31, 2020	33,633
Balance at Dec. 31, 2020	$ 34	570,102	(91,969)	3,435	481,602
Increase (Decrease) in Stockholders' Equity
Net income					35,386
Foreign currency translation adjustments					(820)
Change in pension obligation, net of tax					54
Balance (in shares) at Jun. 30, 2021	33,657
Balance at Jun. 30, 2021	$ 34	561,680	(70,281)	2,669	494,102
Balance (in shares) at Mar. 31, 2021	33,679
Balance at Mar. 31, 2021	$ 34	567,199	(81,656)	2,083	487,660
Increase (Decrease) in Stockholders' Equity
Net income			18,906		18,906
Foreign currency translation adjustments				552	552
Change in pension obligation, net of tax				34	34
Exercise of stock options (in shares)	72
Exercise of stock options		563			563
Issuance of shares under Employee Stock Purchase Plan (in shares)	15
Issuance of shares under Employee Stock Purchase Plan		509			509
Issuance of restricted common shares (in shares)	214
Issuance of restricted common shares		(4,141)			(4,141)
Stock-based compensation expense		3,377			3,377
Repurchase of common stock (in shares)	(323)
Repurchase of common stock		(5,827)	(7,531)		(13,358)
Balance (in shares) at Jun. 30, 2021	33,657
Balance at Jun. 30, 2021	$ 34	$ 561,680	$ (70,281)	$ 2,669	$ 494,102

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash flows from operating activities
Net income	$ 35,386	$ 24,523
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	5,336	4,829
Deferred income taxes	5,107	3,035
Stock-based compensation expense	5,784	4,806
Provision for excess and obsolete inventory	1,888	1,708
Changes in operating assets and liabilities:
Accounts receivable	7,091	18,752
Inventories	(32,418)	(9,123)
Prepaid expenses and other current assets	(3,309)	(4,206)
Accounts payable and other current liabilities	7,282	11,808
Deferred revenue	12,460	1,167
Income taxes	(27)	5
Other assets and liabilities	1,341	(729)
Net cash provided by operating activities	45,921	56,575
Cash flows from investing activities
Expenditures for property, plant and equipment and capitalized software	(2,392)	(2,975)
Net cash used in investing activities	(2,392)	(2,975)
Cash flows from financing activities
Net settlement on restricted stock grants	(6,495)	(3,860)
Repurchase of common stock	(24,993)	(7,501)
Proceeds from Employee Stock Purchase Plan	508	509
Principal payments on finance lease obligation	(362)	(108)
Proceeds from exercise of stock options	3,075	7,282
Net cash used in financing activities	(28,267)	(3,678)
Effect of exchange rate changes on cash and cash equivalents	992	560
Net increase in cash, cash equivalents and restricted cash	16,254	50,482
Cash, cash equivalents and restricted cash at beginning of period	204,232	146,534
Cash, cash equivalents and restricted cash at end of period	$ 220,486	$ 197,016

Nature of Business

Nature of Business	6 Months Ended
Nature of Business	Jun. 30, 2021
Nature of Business
Nature of Business	Note 1. Nature of Business Axcelis Technologies, Inc. (“Axcelis” or the “Company”) was incorporated in Delaware in 1995 and is a producer of ion implantation equipment used in the fabrication of semiconductor chips in the United States, Europe and Asia. In addition, we provide extensive worldwide aftermarket service and support, including spare parts, equipment upgrades, used equipment and maintenance services to the semiconductor industry. The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments which are of a normal recurring nature and considered necessary for a fair presentation of these financial statements have been included. Operating results for the interim periods presented are not necessarily indicative of the results that may be expected for other interim periods or for the year as a whole. The balance sheet at December 31, 2020 has been derived from the audited consolidated financial statements at that date but does not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in Axcelis Technologies, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2020.

Stock Based Compensation

Stock Based Compensation	6 Months Ended
Stock Based Compensation	Jun. 30, 2021
Stock Based Compensation
Stock Based Compensation	Note 2. Stock-Based Compensation We maintain the Axcelis Technologies, Inc. 2012 Equity Incentive Plan, as amended (the “2012 Equity Plan”), which became effective on May 2, 2012, and permits the issuance of options, restricted stock, restricted stock units (“RSUs”) and performance awards to selected employees, directors and consultants of the Company. Our 2000 Stock Plan (the “2000 Stock Plan”) expired on May 1, 2012 and no new grants may be made under that plan after that date. However, unexpired options granted under the 2000 Stock Plan, which have a 10-year term, remain outstanding and subject to the terms of the 2000 Stock Plan. We also maintain the Axcelis Technologies, Inc. 2020 Employee Stock Purchase Plan (the “2020 ESPP”), an Internal Revenue Code Section 423 plan. The Company’s Employee Stock Purchase Plan, which was effective in June 2000 (the “2000 ESPP”), expired in June 2020. The 2012 Equity Plan is more fully described in Note 13 to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2020. We recognized stock-based compensation expense of $3.4 million and $3.1 million for the three-month periods ended June 30, 2021 and 2020, respectively. We recognized stock-based compensation expense of $5.8 million and $4.8 million for the six-month periods ended June 30, 2021 and 2020, respectively. These amounts include compensation expense related to RSUs, non-qualified stock options and stock to be issued to participants under the 2020 ESPP and 2000 ESPP. In the three-month periods ended June 30, 2021 and 2020, we issued 0.3 million and 0.6 million shares of common stock, respectively, upon stock option exercises, purchases under the employee stock purchase plans and vesting of RSUs. In the three-month periods ended June 30, 2021 and 2020, we received proceeds of $1.1 million and $3.3 million, respectively, in connection with the exercise of stock options and purchases under the employee stock purchase plans. In the six-month periods ended June 30, 2021 and 2020, we issued 0.7 million and 1.2 million shares of common stock, respectively, upon stock option exercises, purchases under the employee stock purchase plans and vesting of RSUs. In the six-month periods ended June 30, 2021 and 2020, we received proceeds of $3.6 million and $7.8 million, respectively, in connection with the exercise of stock options and purchases under the employee stock purchase plans.

Leases

Leases	6 Months Ended
Leases	Jun. 30, 2021
Leases
Leases	Note 3. Leases We have operating leases for office space, warehouse space, computer and office equipment and vehicles used in our business operations. We have a finance lease as a result of the 2015 sale-leaseback of our corporate headquarters in Beverly, Massachusetts. All new agreements are reviewed to determine if they contain a lease component. A lease is a contract or part of a contract that conveys the right to control the use of identified property, plant or equipment over a period of time in exchange for consideration. We recognize the lease obligation on a discounted basis using the explicit or implicit discount rate stated within the agreement. We recognize a corresponding right-of-use asset, which is initially determined based upon the net present value of the associated liability and is adjusted for deferred costs and possible impairment, if any. For those lease agreements that do not indicate the applicable discount rate, we use our incremental borrowing rate. 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 June 30, December 31, Leases Classification 2021 2020 Assets (in thousands) Operating leases Operating lease assets $ 7,626 $ 4,542 Finance lease Finance lease assets * 19,889 20,544 Total leased assets $ 27,515 $ 25,086 Liabilities Current Operating Other current liabilities $ 3,215 $ 2,573 Finance Current portion of finance lease obligation 864 756 Noncurrent Operating Other long-term liabilities 4,398 1,949 Finance Finance lease obligation 46,923 47,393 Total lease liabilities $ 55,400 $ 52,671 * Finance lease assets are recorded net of accumulated depreciation of $48.9 million and include $0.7 million of prepaid financing costs as of June 30, 2021. Finance lease assets are recorded net of accumulated depreciation of $48.4 million and include $0.7 Three months ended Six months ended June 30, June 30, Lease cost Classification 2021 2020 2021 2020 Operating lease cost (in thousands) Service Cost of revenue $ 644 $ 624 $ 1,283 $ 1,174 Research and development Operating expenses 122 128 252 209 Sales and marketing* Operating expenses 376 346 755 678 General and administrative* Operating expenses 201 220 461 435 Total operating lease cost $ 1,343 $ 1,318 $ 2,751 $ 2,496 Finance lease cost Depreciation of leased assets Cost of revenue, R&D, Sales and marketing and G&A $ 328 $ 328 $ 656 $ 681 Interest on lease liabilities Interest expense 1,274 1,299 2,553 2,602 Total finance lease cost $ 1,602 $ 1,627 $ 3,209 $ 3,283 Total lease cost $ 2,945 $ 2,945 $ 5,960 $ 5,779 * Sales and marketing and general and administrative expense also includes short-term lease and variable lease costs of approximately $0.4 million and $0.9 million for the three and six months ended June 30, 2021, respectively, and includes short-term and variable lease costs of approximately $0.3 million and $0.5 million for the three and six months ended June 30, 2020, respectively. 1 Finance Operating Total Maturity of Lease Liabilities Leases Leases Leases (in thousands) 2021 $ 2,929 $ 1,827 $ 4,756 2022 5,980 3,053 9,033 2023 6,114 1,544 7,658 2024 6,252 794 7,046 2025 5,930 712 6,642 Thereafter 73,723 545 74,268 Total lease payments $ 100,928 $ 8,475 $ 109,403 Less interest portion* (53,141) (862) (54,003) Finance lease and operating lease obligations $ 47,787 $ 7,613 $ 55,400 * Finance lease interest calculated using the implied interest rate; operating lease interest calculated using estimated corporate borrowing rate. June 30, Lease term and discount rate 2021 Weighted-average remaining lease term (years): Operating leases 3.0 Finance leases 15.6 Weighted-average discount rate: Operating leases 4.5% Finance leases 10.5% Six months ended June 30, Cash paid for amounts included in the measurement of lease liabilities 2021 2020 (in thousands) Operating cash outflows from operating leases $ 2,751 $ 2,496 Operating cash outflows from finance leases 2,556 2,746 Financing cash outflows from finance leases 362 108 Operating lease assets obtained in exchange for operating lease liabilities 4,192 1,038 Finance lease assets obtained in exchange for new finance lease liabilities $ — $ —

Revenue

Revenue	6 Months Ended
Revenue	Jun. 30, 2021
Revenue.
Revenue	Note 4. Revenue Three months ended Six months ended June 30, June 30, 2021 2020 2021 2020 (in thousands) Systems $ 100,138 $ 76,815 $ 181,129 $ 159,152 Aftermarket 47,136 46,150 98,921 82,804 Total Revenue $ 147,274 $ 122,965 $ 280,050 $ 241,956 Three months ended Six months ended June 30, June 30, 2021 2020 2021 2020 (in thousands) North America $ 10,204 $ 8,915 $ 19,712 $ 19,576 Asia Pacific 116,642 106,604 220,033 203,432 Europe 20,428 7,446 40,305 18,948 Total Revenue $ 147,274 $ 122,965 $ 280,050 $ 241,956 June 30, December 31, 2021 2020 (in thousands) Contract liabilities $ 35,518 $ 23,058 Three months ended Six months ended June 30, June 30, 2021 2020 2021 2020 (in thousands) Balance, beginning of the period $ 22,142 $ 34,106 $ 23,058 $ 29,251 Deferral of revenue 21,893 6,248 30,117 10,724 Recognition of deferred revenue (8,517) (9,937) (17,657) (9,558) Balance, end of the period $ 35,518 $ 30,417 $ 35,518 $ 30,417

Receivable and Allowance for Cr

Receivable and Allowance for Credit Losses	6 Months Ended
Receivable and Allowance for Credit Losses	Jun. 30, 2021
Receivable and Allowance for Credit Losses
Receivable and Allowance for Credit Losses	Note 5. Receivables and Allowances for Credit Losses All trade receivables are reported on the Consolidated Balance Sheets at their amortized cost adjusted for any write-offs and net of allowances for credit losses. Axcelis maintains an allowance for credit losses, which represent an estimate of expected losses over the remaining contractual life of our receivables, considering current market conditions and estimates for supportable forecasts when appropriate. The estimate is a result of the Company’s ongoing assessments and evaluations of collectability, historical loss experience, and future expectations in estimating credit losses in our receivable portfolio. Axcelis uses historical loss experience rates and applies them to a related aging analysis while also considering customer and/or economic risk where appropriate. Determination of the proper amount of allowances requires management to exercise judgment about the timing, frequency and severity of credit losses that could materially affect the provision for credit losses and, as a result, net earnings. The allowance takes into consideration numerous quantitative and qualitative factors that include receivable type, historical loss experience, loss migration, delinquency trends, collection experience, current economic conditions, estimates for supportable forecasts, when appropriate, and credit risk characteristics. Axcelis evaluates the credit risk of the customer when extending credit based on a combination of various financial and qualitative factors that may affect our customers’ ability to pay. These factors may include the customer’s financial condition, past payment experience, and credit bureau report, as well as the value of the underlying collateral. Management performs detailed reviews of Axcelis’ receivables on a quarterly basis to assess the adequacy of the allowances and to determine if any impairment has occurred. Amounts determined to be uncollectable are charged directly against the allowances, while amounts recovered on previously written-off accounts increase the allowances. Changes to the allowances for credit losses are maintained through adjustments to the provision for credit losses, which are charged to current period earnings. The following table shows changes of the allowances for credit losses related to trade receivables for the three and six months ended June 30, 2021 and 2020, respectively: Three months ended Six months ended June 30, June 30, 2021 2020 2021 2020 (in thousands) Balance, beginning of period $ — $ — $ — $ 818 Provision for credit losses — — — — Charge-offs — — — (818) Recoveries — — — — Balance, end of period $ — $ — $ — $ —

Computation of Net Earnings per

Computation of Net Earnings per Share	6 Months Ended
Computation of Net Earnings per Share	Jun. 30, 2021
Computation of Net Earnings per Share
Computation of Net Earnings per Share	Note 6. Computation of Net Earnings per Share Basic earnings per share is computed by dividing income available to common stockholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) for the period. The computation of diluted earnings per share is similar to basic earnings per share, except that the denominator is increased by the number of additional common shares that would have been outstanding if the potentially dilutive common shares issuable on exercise of stock options and vesting of RSUs had been issued, calculated using the treasury stock method. The components of net earnings per share are as follows: Three months ended Six months ended June 30, June 30, 2021 2020 2021 2020 (in thousands, except per share amounts) Net income available to common stockholders $ 18,906 $ 13,302 $ 35,386 $ 24,523 Weighted average common shares outstanding used in computing basic income per share 33,677 33,116 33,696 32,998 Incremental options and RSUs 634 842 777 1,025 Weighted average common shares used in computing diluted net income per share 34,311 33,958 34,473 34,023 Net income per share Basic $ 0.56 $ 0.40 $ 1.05 $ 0.74 Diluted $ 0.55 $ 0.39 $ 1.03 $ 0.72 Diluted weighted average common shares outstanding does not include 1,800 and 3,138 common equivalent shares issuable with respect to outstanding equity awards for the three-month periods ended June 30, 2021 and 2020, respectively, or 1,352 and 5,006 common equivalent shares issuable with respect to outstanding equity awards for the six-month periods ending June 30, 2021 and 2020, respectively, as their effect would have been anti-dilutive.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income	6 Months Ended
Accumulated Other Comprehensive Income	Jun. 30, 2021
Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income	Note 7. Accumulated Other Comprehensive Income The following table presents the changes in accumulated other comprehensive income, net of tax, by component, for the six months ended June 30, 2021: Foreign Defined benefit currency pension plan Total (in thousands) Balance at December 31, 2020 $ 3,945 $ (510) $ 3,435 Other comprehensive loss and pension reclassification (820) 54 (766) Balance at June 30, 2021 $ 3,125 $ (456) $ 2,669

Cash, cash equivalents and rest

Cash, cash equivalents and restricted cash	6 Months Ended
Cash, cash equivalents and restricted cash	Jun. 30, 2021
Cash, cash equivalents and restricted cash
Cash, cash equivalents and restricted cash	Note 8. Cash, cash equivalents and restricted cash The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets to the total of the amounts shown in the statement of cash flows: June 30, December 31, 2021 2020 (in thousands) Cash and cash equivalents $ 219,731 $ 203,479 Long-term restricted cash 755 753 Total cash, cash equivalents and restricted cash $ 220,486 $ 204,232 As of June 30, 2021, we had $0.8 million in restricted cash representing the total of (i) cash collateral for a $0.7 million letter of credit relating to workers’ compensation insurance and (ii) a $0.1 million deposit relating to customs activity.

Inventories, net

Inventories, net	6 Months Ended
Inventories, net	Jun. 30, 2021
Inventories, net
Inventories, net	Note 9. Inventories, net The components of inventories are as follows: June 30, December 31, 2021 2020 (in thousands) Raw materials $ 109,795 $ 100,254 Work in process 40,233 33,867 Finished goods (completed systems) 42,293 26,955 Inventories, net $ 192,321 $ 161,076 When recorded, inventory reserves reduce the carrying value of inventories to their net realizable value. We establish inventory reserves when conditions exist that indicate inventory may be in excess of anticipated demand or is obsolete based upon assumptions about future demand for the Company’s products or market conditions. We regularly evaluate the ability to realize the value of inventories based on a combination of factors including the following: forecasted sales or usage, estimated product end of life dates, estimated current and future market value and new product introductions. Purchasing and usage alternatives are also explored to mitigate inventory exposure.

Product Warranty

Product Warranty	6 Months Ended
Product Warranty	Jun. 30, 2021
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 standard product warranty liability are as follows: Six months ended June 30, 2021 2020 (in thousands) Balance at January 1 (beginning of year) $ 4,612 $ 3,244 Warranties issued during the period 3,013 2,635 Settlements made during the period (1,991) (1,913) Changes in estimate of liability for pre-existing warranties during the period (372) 177 Balance at June 30 (end of period) $ 5,262 $ 4,143 Amount classified as current $ 4,690 $ 3,942 Amount classified as long-term 572 201 Total warranty liability $ 5,262 $ 4,143

Fair Value Measurements

Fair Value Measurements	6 Months Ended
Fair Value Measurements	Jun. 30, 2021
Fair Value Measurements
Fair Value Measurements	Note 11. Fair Value Measurements Certain assets on our balance sheets are reported at their fair value. Fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. (a) Fair Value Hierarchy The accounting guidance for fair value measurement requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is as follows: Level 1 Level 2 Level 3 (b) Fair Value Measurements Our money market funds and short-term investments are included in cash and cash equivalents in the consolidated balance sheets. The following table sets forth our assets by level within the fair value hierarchy: June 30, 2021 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 $ 190,731 $ — $ — $ 190,731 December 31, 2020 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 $ 172,119 $ — $ — $ 172,119 (c) Other Financial Instruments The carrying amounts reflected in the consolidated balance sheets for accounts receivable, prepaid expenses and other current assets and non-current assets, restricted cash, accounts payable and accrued expenses approximate fair value due to their short-term maturities.

Financing Arrangements

Financing Arrangements	6 Months Ended
Financing Arrangements	Jun. 30, 2021
Financing Arrangements
Financing Arrangements	Note 12. Financing Arrangements On January 30, 2015, we sold our corporate headquarters facility in Beverly, Massachusetts for $48.9 million. As part of the sale, we also entered into a 22-year lease agreement of our headquarters facility. This sale-leaseback is accounted for as a financing lease under generally accepted accounting principles and, as such, we have recorded a financing obligation of $47.8 million as of June 30, 2021. The associated lease payments include both an interest component and payment of principal, with the remaining liability being extinguished at the end of the original lease term. We posted a security deposit of $5.9 million in the form of an irrevocable letter of credit at the time of the closing. This letter of credit reduces our availability under our credit facility, as described in the next paragraph. On July 31, 2020, we entered into a Senior Secured Credit Facilities Credit Agreement (the “Credit Agreement”) with Silicon Valley Bank, in its capacity as administrative agent and collateral agent for itself and as a lender, and such other banks and financial institutions or entities that from time to time join as lenders under the Credit Agreement. The Credit Agreement provides for a revolving credit facility in an aggregate principal amount not to exceed $40.0 million. Our obligations under the Credit Agreement are secured by a security interest, senior to any current and future debts and to any security interest, in all of our rights, title, and interest in, to and under substantially all of our assets, subject to limited exceptions, including permitted liens. The revolving credit facility terminates on July 31, 2023. As of June 30, 2021, we were in compliance with all covenant requirements of the Credit Agreement. As of such date, no borrowings had been made under the Credit Agreement, although a letter of credit for $5.9 million reduces the funds available for borrowing under the credit line. We entered into a First Amendment to the Credit Agreement with Silicon Valley Bank in March 2021 to (i) align the covenants with our 2021 stock repurchase program, and (ii) established terms to transition from a Eurodollar based interest rate option to an interest rate benchmark using a secured overnight financing rate (known as “SOFR”) published by the Federal Reserve Bank of New York.

Income Taxes

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2021
Income Taxes
Income Taxes	Note 13. Income Taxes Income tax expense was $3.8 million for the three months ended June 30, 2021, compared to $2.3 million for the three months ended June 30, 2020. The $1.5 million increase was primarily due to a $7.2 million increase in pretax income. Income tax expense was $5.6 million during the six months ended June 30, 2021, compared with $3.3 million for the six months ended June 30, 2020. The The effective tax rate for the three and six months ended June 30, 2021 and 2020, respectively, was less than the U.S. statutory rate of 21% due to favorable discrete items related to equity compensation in those periods and Federal research and development tax credits that reduce the annual tax rate. We had $51.4 million and $57.9 million of net deferred tax assets worldwide relating to net operating loss carryforwards, tax credit carryforwards and other temporary differences, as of June 30, 2021 and December 31, 2020, respectively. These deferred tax assets are available to reduce income taxes in future years. We have a $9.1 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 tax assets. If future operating results of the Company within the U.S. or these foreign jurisdictions are significantly less than our expectations, it is reasonably possible that we would be required to record an additional valuation allowance on our deferred tax assets in the future.

Concentration of Risk

Concentration of Risk	6 Months Ended
Concentration of Risk	Jun. 30, 2021
Concentration of Risk
Concentration of Risk	Note 14. Concentration of Risk For the three months ended June 30, 2021, two customers accounted for 19.7% and 10.2% of total revenue, respectively. For the three months ended June 30, 2020, three customers accounted for 22.5%, 22.2% and 11.6% of total revenue, respectively. For the six months ended June 30, 2021, one customer accounted for 24.4% of total revenue. For the six months ended June 30, 2020 , three customers accounted for 19.7%, 18.5% and 16.2% of total revenue, respectively. At June 30, 2021, two customers accounted for 11.7% and 10.0% of accounts receivable, respectively. At December 31, 2020, two customers accounted for 23.8% and 11.9% of accounts receivable, respectively.

Share Repurchase

Share Repurchase	6 Months Ended
Share Repurchase	Jun. 30, 2021
Share Repurchase
Share Repurchase	Note 15. Share Repurchase In December 2020, our Board of Directors approved stock repurchases of up to $100 million of our common stock through the end of 2021. During the six months ended June 30, 2021, we purchased 0.6 million shares at an average cost of $39.92 per share. The timing and actual number of shares repurchased under this program will depend on various factors including price, corporate and regulatory requirements, alternative investment opportunities and other market conditions. Shares repurchased by us are accounted for when the transaction is settled. Shares repurchased and retired are deducted from common stock for par value and from additional paid-in capital for the excess over par value. If additional paid-in capital has been exhausted, the excess over par value is deducted from retained earnings. Direct costs incurred to acquire the shares are included in the total cost of the shares.

Contingencies

Contingencies	6 Months Ended
Contingencies	Jun. 30, 2021
Contingencies
Contingencies	Note 16. Contingencies (a) Litigation We are from time to time a party to litigation that arises in the normal course of our business operations. We are not presently a party to any litigation that we believe might have a material adverse effect on our business operations. (b) Indemnifications Our system sales agreements typically include provisions under which we agree to take certain actions, provide certain remedies and defend our customers against third-party claims of intellectual property infringement under specified conditions and indemnify customers against any damage and costs awarded in connection with such claims. We have not incurred any material costs as a result of such indemnifications and have not accrued any liabilities related to such obligations in the accompanying consolidated financial statements.

Recent Accounting Guidance

Recent Accounting Guidance	6 Months Ended
Recent Accounting Guidance	Jun. 30, 2021
Recent Accounting Guidance
Recent Accounting Guidance	Note 17. Recent Accounting Guidance i. Accounting Standards Update 2019-12 Income Taxes (Topic 740) We adopted Financial Accounting Standards Board ASU No. 2019-12 “ Income Taxes (Topic 740)

Leases (Tables)

Leases (Tables)	6 Months Ended
Leases (Tables)	Jun. 30, 2021
Leases
Schedule of operating and finance lease right-of-use assets and related lease obligations	June 30, December 31, Leases Classification 2021 2020 Assets (in thousands) Operating leases Operating lease assets $ 7,626 $ 4,542 Finance lease Finance lease assets * 19,889 20,544 Total leased assets $ 27,515 $ 25,086 Liabilities Current Operating Other current liabilities $ 3,215 $ 2,573 Finance Current portion of finance lease obligation 864 756 Noncurrent Operating Other long-term liabilities 4,398 1,949 Finance Finance lease obligation 46,923 47,393 Total lease liabilities $ 55,400 $ 52,671 * Finance lease assets are recorded net of accumulated depreciation of $48.9 million and include $0.7 million of prepaid financing costs as of June 30, 2021. Finance lease assets are recorded net of accumulated depreciation of $48.4 million and include $0.7
Schedule of lease costs	Three months ended Six months ended June 30, June 30, Lease cost Classification 2021 2020 2021 2020 Operating lease cost (in thousands) Service Cost of revenue $ 644 $ 624 $ 1,283 $ 1,174 Research and development Operating expenses 122 128 252 209 Sales and marketing* Operating expenses 376 346 755 678 General and administrative* Operating expenses 201 220 461 435 Total operating lease cost $ 1,343 $ 1,318 $ 2,751 $ 2,496 Finance lease cost Depreciation of leased assets Cost of revenue, R&D, Sales and marketing and G&A $ 328 $ 328 $ 656 $ 681 Interest on lease liabilities Interest expense 1,274 1,299 2,553 2,602 Total finance lease cost $ 1,602 $ 1,627 $ 3,209 $ 3,283 Total lease cost $ 2,945 $ 2,945 $ 5,960 $ 5,779 * Sales and marketing and general and administrative expense also includes short-term lease and variable lease costs of approximately $0.4 million and $0.9 million for the three and six months ended June 30, 2021, respectively, and includes short-term and variable lease costs of approximately $0.3 million and $0.5 million for the three and six months ended June 30, 2020, respectively.
Schedule of future minimum operating and finance leases	Finance Operating Total Maturity of Lease Liabilities Leases Leases Leases (in thousands) 2021 $ 2,929 $ 1,827 $ 4,756 2022 5,980 3,053 9,033 2023 6,114 1,544 7,658 2024 6,252 794 7,046 2025 5,930 712 6,642 Thereafter 73,723 545 74,268 Total lease payments $ 100,928 $ 8,475 $ 109,403 Less interest portion* (53,141) (862) (54,003) Finance lease and operating lease obligations $ 47,787 $ 7,613 $ 55,400 * 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	June 30, Lease term and discount rate 2021 Weighted-average remaining lease term (years): Operating leases 3.0 Finance leases 15.6 Weighted-average discount rate: Operating leases 4.5% Finance leases 10.5%
Schedule of cash outflows by lease type	Six months ended June 30, Cash paid for amounts included in the measurement of lease liabilities 2021 2020 (in thousands) Operating cash outflows from operating leases $ 2,751 $ 2,496 Operating cash outflows from finance leases 2,556 2,746 Financing cash outflows from finance leases 362 108 Operating lease assets obtained in exchange for operating lease liabilities 4,192 1,038 Finance lease assets obtained in exchange for new finance lease liabilities $ — $ —

Revenue (Tables)

Revenue (Tables)	6 Months Ended
Revenue (Tables)	Jun. 30, 2021
Revenue.
Schedule of revenue by discipline	Three months ended Six months ended June 30, June 30, 2021 2020 2021 2020 (in thousands) Systems $ 100,138 $ 76,815 $ 181,129 $ 159,152 Aftermarket 47,136 46,150 98,921 82,804 Total Revenue $ 147,274 $ 122,965 $ 280,050 $ 241,956
Schedule of revenue by geographic markets	Three months ended Six months ended June 30, June 30, 2021 2020 2021 2020 (in thousands) North America $ 10,204 $ 8,915 $ 19,712 $ 19,576 Asia Pacific 116,642 106,604 220,033 203,432 Europe 20,428 7,446 40,305 18,948 Total Revenue $ 147,274 $ 122,965 $ 280,050 $ 241,956
Schedule of Contract liabilities	June 30, December 31, 2021 2020 (in thousands) Contract liabilities $ 35,518 $ 23,058 Three months ended Six months ended June 30, June 30, 2021 2020 2021 2020 (in thousands) Balance, beginning of the period $ 22,142 $ 34,106 $ 23,058 $ 29,251 Deferral of revenue 21,893 6,248 30,117 10,724 Recognition of deferred revenue (8,517) (9,937) (17,657) (9,558) Balance, end of the period $ 35,518 $ 30,417 $ 35,518 $ 30,417

Receivable and Allowance for _2

Receivable and Allowance for Credit Losses (Tables)	6 Months Ended
Receivable and Allowance for Credit Losses (Tables)	Jun. 30, 2021
Receivable and Allowance for Credit Losses
Schedule of allowances for credit losses related to trade receivables	Three months ended Six months ended June 30, June 30, 2021 2020 2021 2020 (in thousands) Balance, beginning of period $ — $ — $ — $ 818 Provision for credit losses — — — — Charge-offs — — — (818) Recoveries — — — — Balance, end of period $ — $ — $ — $ —

Computation of Net Earnings p_2

Computation of Net Earnings per Share (Tables)	6 Months Ended
Computation of Net Earnings per Share (Tables)	Jun. 30, 2021
Computation of Net Earnings per Share
Schedule of components of net income per share	Three months ended Six months ended June 30, June 30, 2021 2020 2021 2020 (in thousands, except per share amounts) Net income available to common stockholders $ 18,906 $ 13,302 $ 35,386 $ 24,523 Weighted average common shares outstanding used in computing basic income per share 33,677 33,116 33,696 32,998 Incremental options and RSUs 634 842 777 1,025 Weighted average common shares used in computing diluted net income per share 34,311 33,958 34,473 34,023 Net income per share Basic $ 0.56 $ 0.40 $ 1.05 $ 0.74 Diluted $ 0.55 $ 0.39 $ 1.03 $ 0.72

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Tables)	6 Months Ended
Accumulated Other Comprehensive Income (Tables)	Jun. 30, 2021
Accumulated Other Comprehensive Income
Schedule of changes in accumulated other comprehensive loss, net of tax	Foreign Defined benefit currency pension plan Total (in thousands) Balance at December 31, 2020 $ 3,945 $ (510) $ 3,435 Other comprehensive loss and pension reclassification (820) 54 (766) Balance at June 30, 2021 $ 3,125 $ (456) $ 2,669

Cash, cash equivalents and re_2

Cash, cash equivalents and restricted cash (Tables)	6 Months Ended
Cash, cash equivalents and restricted cash (Tables)	Jun. 30, 2021
Cash, cash equivalents and restricted cash
Schedule of reconciliation of cash, cash equivalents and restricted cash	June 30, December 31, 2021 2020 (in thousands) Cash and cash equivalents $ 219,731 $ 203,479 Long-term restricted cash 755 753 Total cash, cash equivalents and restricted cash $ 220,486 $ 204,232

Inventories, net (Tables)

Inventories, net (Tables)	6 Months Ended
Inventories, net (Tables)	Jun. 30, 2021
Inventories, net
Schedule of components of inventories	June 30, December 31, 2021 2020 (in thousands) Raw materials $ 109,795 $ 100,254 Work in process 40,233 33,867 Finished goods (completed systems) 42,293 26,955 Inventories, net $ 192,321 $ 161,076

Product Warranty (Tables)

Product Warranty (Tables)	6 Months Ended
Product Warranty (Tables)	Jun. 30, 2021
Product Warranty
Schedule of product warranty liability	Six months ended June 30, 2021 2020 (in thousands) Balance at January 1 (beginning of year) $ 4,612 $ 3,244 Warranties issued during the period 3,013 2,635 Settlements made during the period (1,991) (1,913) Changes in estimate of liability for pre-existing warranties during the period (372) 177 Balance at June 30 (end of period) $ 5,262 $ 4,143 Amount classified as current $ 4,690 $ 3,942 Amount classified as long-term 572 201 Total warranty liability $ 5,262 $ 4,143

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
Fair Value Measurements (Tables)	Jun. 30, 2021
Fair Value Measurements
Schedule of Company's assets and liabilities by level within the fair value hierarchy	June 30, 2021 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 $ 190,731 $ — $ — $ 190,731 December 31, 2020 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 $ 172,119 $ — $ — $ 172,119

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
Stock-Based Compensation (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020
Stock-Based Compensation
Stock-based compensation expense	$ 3,400		$ 3,100		$ 5,800	$ 4,800
Proceeds from exercise of stock options					$ 3,075	$ 7,282
Common Stock
Stock-Based Compensation
Exercise of stock options (in shares)	72,000	268,000	343,000	540,000
Common Stock \| 2020 Employee stock purchase plan
Stock-Based Compensation
Exercise of stock options (in shares)	300,000		600,000		700,000	1,200,000
Proceeds from exercise of stock options	$ 1,100		$ 3,300		$ 3,600	$ 7,800
2000 Stock Plan
Stock-Based Compensation
Awards granted (in shares)					0
2000 Stock Plan \| Stock Options
Stock-Based Compensation
Options Expiration period					10 years

Leases (Details)

Leases (Details)	6 Months Ended
Leases (Details)	Jun. 30, 2021
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	Jun. 30, 2021	Dec. 31, 2020
Leases
Operating lease assets	$ 7,626	$ 4,542
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Operating lease assets
Finance lease assets	$ 19,889	20,544
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Finance lease assets
Total leased assets	$ 27,515	25,086
Operating liabilities current	$ 3,215	$ 2,573
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Other Liabilities, Current	Other Liabilities, Current
Finance liabilities current	$ 864	$ 756
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	Other Liabilities, Current
Operating liabilities noncurrent	$ 4,398	$ 1,949
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other Liabilities, Noncurrent	Other Liabilities, Noncurrent
Finance liabilities noncurrent	$ 46,923	$ 47,393
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Finance liabilities noncurrent
Total lease liabilities	$ 55,400	52,671
Operating Lease, Liability, Statement of Financial Position [Extensible List]	us-gaap:OtherLiabilitiesCurrent us-gaap:OtherLiabilitiesNoncurrent
Finance lease, accumulated depreciation	$ 48,900	48,400
Prepaid financing costs	$ 700	$ 700

Leases - Lease Cost (Details)

Leases - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Leases - Lease Cost (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Lease cost
Total operating lease cost	$ 1,343	$ 1,318	$ 2,751	$ 2,496
Depreciation of leased assets	328	328	656	681
Interest on lease liabilities	1,274	1,299	2,553	2,602
Total finance lease cost	1,602	1,627	3,209	3,283
Total lease cost	2,945	2,945	5,960	5,779
Short-term lease and variable lease costs	400	300	900	500
Service
Lease cost
Total operating lease cost	644	624	1,283	1,174
Research and development
Lease cost
Total operating lease cost	122	128	252	209
Sales and marketing*
Lease cost
Total operating lease cost	376	346	755	678
General and administrative*
Lease cost
Total operating lease cost	$ 201	$ 220	$ 461	$ 435

Leases - Future Minimum Cash Ou

Leases - Future Minimum Cash Outflow and Weighted-average Remaining Lease Term and Discount Rate (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Future minimum lease payments finance lease
2021	$ 2,929
2022	5,980
2023	6,114
2024	6,252
2025	5,930
Thereafter	73,723
Total lease payments	100,928
Less interest portion	(53,141)
Finance lease obligations	47,787
Future minimum lease payments operating lease
2021	1,827
2022	3,053
2023	1,544
2024	794
2025	712
Thereafter	545
Total lease payments	8,475
Less interest portion	(862)
Operating lease obligations	7,613
Future minimum lease payments finance and operating lease
2021	4,756
2022	9,033
2023	7,658
2024	7,046
2025	6,642
Thereafter	74,268
Total lease payments	109,403
Less interest portion	(54,003)
Total lease liabilities	$ 55,400	$ 52,671
Lease term and discount rate
Operating leases -Weighted-average remaining lease term (in years)	3 years
Finance leases - Weighted-average remaining lease term (in years)	15 years 7 months 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) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Leases
Operating cash outflows from operating leases	$ 2,751	$ 2,496
Operating cash outflows from finance leases	2,556	2,746
Financing cash outflows from finance leases	362	108
Operating lease assets obtained in exchange for operating lease liabilities	$ 4,192	$ 1,038

Revenue (Details)

Revenue (Details) - USD ($) $ in Thousands	6 Months Ended
Revenue (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019
Disaggregation of Revenue
Contract liabilities	$ 35,518	$ 22,142	$ 23,058	$ 30,417	$ 34,106	$ 29,251
Deferred revenue	34,112		21,221
Long-term deferred revenue	$ 1,406		$ 1,837
Systems
Disaggregation of Revenue
Payment upon shipment of tool, as a percent	90.00%
Payment upon installation, as a percent	10.00%
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	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Disaggregation of Revenue
Total Revenue	$ 147,274	$ 122,965	$ 280,050	$ 241,956
North America
Disaggregation of Revenue
Total Revenue	10,204	8,915	19,712	19,576
Asia Pacific
Disaggregation of Revenue
Total Revenue	116,642	106,604	220,033	203,432
Europe
Disaggregation of Revenue
Total Revenue	20,428	7,446	40,305	18,948
Systems
Disaggregation of Revenue
Total Revenue	100,138	76,815	181,129	159,152
CS&I/Aftermarket
Disaggregation of Revenue
Total Revenue	$ 47,136	$ 46,150	$ 98,921	$ 82,804

Revenue - Contract liabilities

Revenue - Contract liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019
Revenue.
Contract liabilities	$ 35,518	$ 22,142	$ 23,058	$ 30,417	$ 34,106	$ 29,251

Revenue - Deferred revenue (Det

Revenue - Deferred revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Revenue.
Balance, beginning of the period	$ 22,142	$ 34,106	$ 23,058	$ 29,251
Deferral of revenue	21,893	6,248	30,117	10,724
Recognition of deferred revenue	(8,517)	(9,937)	(17,657)	(9,558)
Balance, end of the period	$ 35,518	$ 30,417	$ 35,518	$ 30,417

Receivable and Allowance for _3

Receivable and Allowance for Credit Losses - Allowances for Credit Losses Related to Trade Receivables (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2020USD ($)
Receivable and Allowance for Credit Losses
Balance, beginning of period	$ 818
Charge-offs	$ (818)

Computation of Net Earnings p_3

Computation of Net Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020
Computation of Net Earnings per Share
Net income available to common stockholders	$ 18,906	$ 16,480	$ 13,302	$ 11,221	$ 35,386	$ 24,523
Weighted average common shares outstanding used in computing basic income per share	33,677		33,116		33,696	32,998
Incremental options and RSUs	634		842		777	1,025
Weighted average common shares used in computing diluted net income per share	34,311		33,958		34,473	34,023
Net income per share
Basic	$ 0.56		$ 0.40		$ 1.05	$ 0.74
Diluted	$ 0.55		$ 0.39		$ 1.03	$ 0.72
Anti-dilutive common equivalent shares excluded from calculation	1,800		3,138		1,352	5,006

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Changes in accumulated other comprehensive income, net of tax
Balance at December 31, 2020			$ 3,435
Other comprehensive income and pension reclassification	$ 586	$ 893	(766)	$ (162)
Balance at June 30, 2021	2,669		2,669
Foreign currency
Changes in accumulated other comprehensive income, net of tax
Balance at December 31, 2020			3,945
Other comprehensive income and pension reclassification			(820)
Balance at June 30, 2021	3,125		3,125
Defined benefit pension plan
Changes in accumulated other comprehensive income, net of tax
Balance at December 31, 2020			(510)
Other comprehensive income and pension reclassification			54
Balance at June 30, 2021	$ (456)		$ (456)

Cash, cash equivalents and re_3

Cash, cash equivalents and restricted cash (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020	Dec. 31, 2019
Cash and cash equivalents	$ 219,731	$ 203,479
Long-term restricted cash	755	753
Total cash, cash equivalents and restricted cash	220,486	$ 204,232	$ 197,016	$ 146,534
Letter of credit related to workers' compensation insurance	700
Deposit related to customs activity	100
Revolving credit facility
Restricted cash which relates to support of outstanding letters of credit	$ 800

Inventories, net (Details)

Inventories, net (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Inventories, net
Raw materials	$ 109,795	$ 100,254
Work in process	40,233	33,867
Finished goods (completed systems)	42,293	26,955
Inventories, net	$ 192,321	$ 161,076

Product Warranty (Details)

Product Warranty (Details) - USD ($) $ in Thousands	6 Months Ended
Product Warranty (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Product Warranty
Product warranty period	1 year
Changes in standard product warranty liability
Balance at January 1 (beginning of year)	$ 4,612	$ 3,244
Warranties issued during the period	3,013	2,635
Settlements made during the period	(1,991)	(1,913)
Changes in estimate of liability for pre-existing warranties during the period	(372)	177
Balance at June 30 (end of period)	5,262	4,143
Product warranty classification
Amount classified as current	4,690	3,942	$ 4,280
Amount classified as long-term	572	201
Total warranty liability	$ 5,262	$ 4,143	$ 4,612

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Recurring - Money market funds, US Government Securities and Agency Investments - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Total
Fair Value Measurements
Money market funds, U.S. Government Securities and Agency Investments	$ 190,731	$ 172,119
Level 1
Fair Value Measurements
Money market funds, U.S. Government Securities and Agency Investments	$ 190,731	$ 172,119

Financing Arrangements (Details

Financing Arrangements (Details) - USD ($) $ in Thousands	Jan. 30, 2015	Jun. 30, 2021	Dec. 31, 2020	Jul. 31, 2020
Financing Arrangements
Long-term finance lease obligation		$ 46,923	$ 47,393
Sale leaseback obligation
Financing Arrangements
Long-term finance lease obligation		47,800
Security deposit		5,900
Beverly Property Owner LLC \| Buildings
Financing Arrangements
Proceeds from sale of corporate headquarters	$ 48,900
Lease term	22 years
Silicon Valley Bank \| Revolving credit facility
Financing Arrangements
Maximum borrowing capacity under the credit facility				$ 40,000
Borrowings amount		0
Silicon Valley Bank \| Revolving credit facility \| Letter of credit
Financing Arrangements
Letter of credit		$ 5,900

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Valuation allowance
Income tax provision	$ 3,842	$ 2,271	$ 5,563	$ 3,312
Increase in income tax expense	1,500		2,300
Increase in pretax income	7,200		13,100
Deferred tax assets, net	51,386		51,386		$ 57,851
Deferred tax assets valuation allowance	$ 9,100		$ 9,100
Maximum
Valuation allowance
Statutory income tax rate (as a percent)	21.00%	21.00%	21.00%	21.00%

Concentration of Risk (Details)

Concentration of Risk (Details) - customer	3 Months Ended		6 Months Ended		12 Months Ended
Concentration of Risk (Details) - customer	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Revenue \| Customer concentration risk
Concentration of Risk
Number of customers	2	3	1	3
Revenue \| Customer concentration risk \| First customer
Concentration of Risk
Percentage of concentration risk	19.70%	22.50%	24.40%	19.70%
Revenue \| Customer concentration risk \| Second customer
Concentration of Risk
Percentage of concentration risk	10.20%	22.20%	29.60%	18.50%
Revenue \| Customer concentration risk \| Third customer
Concentration of Risk
Percentage of concentration risk		11.60%	29.60%	16.20%
Consolidated accounts receivable \| Credit concentration risk
Concentration of Risk
Number of customers			2		2
Consolidated accounts receivable \| Credit concentration risk \| First customer
Concentration of Risk
Percentage of concentration risk			11.70%		23.80%
Consolidated accounts receivable \| Credit concentration risk \| Second customer
Concentration of Risk
Percentage of concentration risk			10.00%		11.90%

Share Repurchase (Details)

Share Repurchase (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Share Repurchase
Share repurchase program common stock authorized amount		$ 100
Number of shares repurchased	0.6
Average cost	$ 39.92