Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | May 02, 2022 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2022 | |
Current Fiscal Year End Date | --12-31 | |
Document Transition Report | false | |
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, $0.001 par value | |
Trading Symbol | ACLS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 33,020,420 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001113232 | |
Amendment Flag | false | |
Document Quarterly Report | true |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue: | ||
Total revenue | $ 203,595 | $ 132,776 |
Cost of revenue: | ||
Total cost of revenue | 113,829 | 76,341 |
Gross profit | 89,766 | 56,435 |
Operating expenses: | ||
Research and development | 16,973 | 15,685 |
Sales and marketing | 11,291 | 10,387 |
General and administrative | 12,579 | 10,013 |
Total operating expenses | 40,843 | 36,085 |
Income from operations | 48,923 | 20,350 |
Other (expense) income: | ||
Interest income | 95 | 33 |
Interest expense | (1,518) | (1,029) |
Other, net | (1,617) | (1,153) |
Total other expense | (3,040) | (2,149) |
Income before income taxes | 45,883 | 18,201 |
Income tax provision | 4,269 | 1,721 |
Net income | $ 41,614 | $ 16,480 |
Net income per share: | ||
Basic | $ 1.25 | $ 0.49 |
Diluted | $ 1.22 | $ 0.48 |
Shares used in computing net income per share: | ||
Basic weighted average common shares | 33,245 | 33,715 |
Diluted weighted average common shares | 33,974 | 34,643 |
Product | ||
Revenue: | ||
Total revenue | $ 196,531 | $ 126,609 |
Cost of revenue: | ||
Total cost of revenue | 107,642 | 70,334 |
Services | ||
Revenue: | ||
Total revenue | 7,064 | 6,167 |
Cost of revenue: | ||
Total cost of revenue | $ 6,187 | $ 6,007 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Consolidated Statements of Comprehensive Income | ||
Net income | $ 41,614 | $ 16,480 |
Other comprehensive loss: | ||
Foreign currency translation adjustments | (1,186) | (1,372) |
Amortization of actuarial gain and other adjustments from pension plan, net of tax | 9 | 20 |
Total other comprehensive loss | (1,177) | (1,352) |
Comprehensive income | $ 40,437 | $ 15,128 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 297,141 | $ 294,923 |
Accounts receivable, net | 118,987 | 104,410 |
Inventories, net | 203,838 | 194,984 |
Prepaid expenses and other current assets | 28,740 | 24,929 |
Total current assets | 648,706 | 619,246 |
Property, plant and equipment, net | 35,500 | 34,972 |
Operating lease assets | 9,403 | 9,242 |
Finance lease assets, net | 18,914 | 19,238 |
Long-term restricted cash | 755 | 757 |
Deferred income taxes | 36,226 | 35,454 |
Other assets | 32,692 | 34,331 |
Total assets | 782,196 | 753,240 |
Current liabilities: | ||
Accounts payable | 50,759 | 38,025 |
Accrued compensation | 10,538 | 30,732 |
Warranty | 7,203 | 6,424 |
Income taxes | 1,734 | 887 |
Deferred revenue | 60,477 | 60,454 |
Current portion of finance lease obligation | 1,039 | 979 |
Other current liabilities | 15,747 | 12,639 |
Total current liabilities | 147,497 | 150,140 |
Long-term finance lease obligation | 46,128 | 46,415 |
Long-term deferred revenue | 14,363 | 7,982 |
Other long-term liabilities | 14,935 | 9,744 |
Total liabilities | 222,923 | 214,281 |
Commitments and contingencies (Note 16) | ||
Stockholders' equity: | ||
Common stock, $0.001 par value, 75,000 shares authorized; 33,064 shares issued and outstanding at March 31, 2022; 33,240 shares issued and outstanding at December 31, 2021 | 33 | 33 |
Additional paid-in capital | 554,633 | 559,883 |
Retained earnings (accumulated deficit) | 4,019 | (22,722) |
Accumulated other comprehensive income | 588 | 1,765 |
Total stockholders' equity | 559,273 | 538,959 |
Total liabilities and stockholders' equity | $ 782,196 | $ 753,240 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
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 | 33,064 | 33,240 |
Common stock, shares outstanding | 33,064 | 33,240 |
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, 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 | 20 | 20 | |||
Exercise of stock options (in shares) | 268 | ||||
Exercise of stock options | 2,512 | 2,512 | |||
Issuance of common shares on restricted stock units, net of shares withheld (in shares) | 81 | ||||
Issuance of common shares on restricted stock units, net of shares withheld | (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, 2021 | 33,240 | ||||
Balance at Dec. 31, 2021 | $ 33 | 559,883 | (22,722) | 1,765 | 538,959 |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 41,614 | 41,614 | |||
Foreign currency translation adjustments | (1,186) | (1,186) | |||
Change in pension obligation | 9 | 9 | |||
Exercise of stock options (in shares) | 41 | ||||
Exercise of stock options | 491 | 491 | |||
Issuance of common shares on restricted stock units, net of shares withheld (in shares) | 67 | ||||
Issuance of common shares on restricted stock units, net of shares withheld | (3,315) | (3,315) | |||
Stock-based compensation expense | 2,701 | 2,701 | |||
Repurchase of common stock (in shares) | (284) | ||||
Repurchase of common stock | (5,127) | (14,873) | (20,000) | ||
Balance (in shares) at Mar. 31, 2022 | 33,064 | ||||
Balance at Mar. 31, 2022 | $ 33 | $ 554,633 | $ 4,019 | $ 588 | $ 559,273 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities | ||
Net income | $ 41,614 | $ 16,480 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 2,848 | 2,645 |
Deferred income taxes | 2,252 | 1,613 |
Stock-based compensation expense | 2,701 | 2,407 |
Provision for excess and obsolete inventory | 1,027 | 984 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (15,199) | 10,431 |
Inventories | (11,490) | (16,503) |
Prepaid expenses and other current assets | (1,852) | (3,325) |
Accounts payable and other current liabilities | (3,582) | (1,008) |
Deferred revenue | 6,418 | (909) |
Income taxes | 858 | 2 |
Other assets and liabilities | 175 | 2,281 |
Net cash provided by operating activities | 25,770 | 15,098 |
Cash flows from investing activities | ||
Expenditures for property, plant and equipment and capitalized software | (1,503) | (1,347) |
Net cash used in investing activities | (1,503) | (1,347) |
Cash flows from financing activities | ||
Net settlement on restricted stock grants | (3,315) | (2,354) |
Repurchase of common stock | (20,000) | (11,635) |
Principal payments on finance lease obligation | (229) | (175) |
Proceeds from exercise of stock options | 491 | 2,512 |
Net cash used in financing activities | (23,053) | (11,652) |
Effect of exchange rate changes on cash and cash equivalents | 1,002 | 1,188 |
Net increase in cash, cash equivalents and restricted cash | 2,216 | 3,287 |
Cash, cash equivalents and restricted cash at beginning of period | 295,680 | 204,232 |
Cash, cash equivalents and restricted cash at end of period | $ 297,896 | $ 207,519 |
Nature of Business
Nature of Business | 3 Months Ended |
Mar. 31, 2022 | |
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, 2021 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, 2021. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2022 | |
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”), an Internal Revenue Code Section 423 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. 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, 2021. We recognized stock-based compensation expense of $2.7 million and $2.4 million for the three-month periods ended March 31, 2022 and 2021, respectively. These amounts include compensation expense related to RSUs and non-qualified stock options. In the three-month periods ended March 31, 2022 and 2021, we issued 0.1 million and 0.3 million shares of common stock, respectively, upon stock option exercises and vesting of RSUs. In the three-month periods ended March 31, 2022 and 2021, we received proceeds of $0.5 million and $2.5 million, respectively, in connection with the exercise of stock options. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2022 | |
Leases | |
Leases | Note 3. Leases We have operating leases for office space, warehouse space, a manufacturing plant, computer and office equipment as well as 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 one March 31, December 31, Leases Classification 2022 2021 Assets (in thousands) Operating leases Operating lease assets $ 9,403 $ 9,242 Finance lease Finance lease assets * 18,914 19,238 Total leased assets $ 28,317 $ 28,480 Liabilities Current Operating Other current liabilities $ 5,106 $ 4,716 Finance Current portion of finance lease obligation 1,039 979 Noncurrent Operating Other long-term liabilities 4,170 4,357 Finance Finance lease obligation 46,128 46,415 Total lease liabilities $ 56,443 $ 56,467 *Finance lease assets are recorded net of accumulated depreciation of $48.9 million and includes $0.6 million of prepaid financing costs as of March 31, 2022. Finance lease assets are recorded net of accumulated depreciation of $48.6 million and includes $0.7 million of prepaid financing costs as of December 31, 2021. Three months ended March 31, Lease cost Classification 2022 2021 Operating lease cost (in thousands) Product / Services Cost of revenue $ 1,210 $ 639 Research and development Operating expenses 56 130 Sales and marketing* Operating expenses 418 378 General and administrative* Operating expenses 211 260 Total operating lease cost $ 1,895 $ 1,407 Finance lease cost Depreciation of leased assets Cost of revenue, R&D, Sales and marketing and G&A $ 324 $ 328 Interest on lease liabilities Interest expense 1,258 1,279 Total finance lease cost $ 1,582 $ 1,607 Total lease cost $ 3,477 $ 3,014 * Sales and marketing and general and administrative expense also includes short-term lease and variable lease costs of approximately $0.5 million and $0.4 million for the three months ended March 31, 2022 and 2021, respectively. , beginning in January 2015 and expiring in January 2037, with renewal options. All other locations are treated as operating leases, with lease terms ranging from one to Finance Operating Total Maturity of Lease Liabilities Leases Leases Leases (in thousands) 2022 $ 4,493 $ 4,075 $ 8,568 2023 6,114 3,188 9,302 2024 6,252 1,032 7,284 2025 5,930 718 6,648 2026 6,008 482 6,490 Thereafter 67,715 78 67,793 Total lease payments $ 96,512 $ 9,573 $ 106,085 Less interest portion* (49,345) (297) (49,642) Finance lease and operating lease obligations $ 47,167 $ 9,276 $ 56,443 * Finance lease interest calculated using the implied interest rate; operating lease interest calculated using estimated corporate borrowing rate. March 31, Lease term and discount rate 2022 Weighted-average remaining lease term (years): Operating leases 2.6 Finance leases 14.8 Weighted-average discount rate: Operating leases 4.5% Finance leases 10.5% Three months ended March 31, Cash paid for amounts included in the measurement of lease liabilities 2022 2021 (in thousands) Operating cash outflows from operating leases $ 1,896 $ 1,407 Operating cash outflows from finance leases 1,258 1,279 Financing cash outflows from finance leases 229 175 Operating lease assets obtained in exchange for operating lease liabilities 1,638 791 Finance lease assets obtained in exchange for new finance lease liabilities — — |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2022 | |
Revenue. | |
Revenue | Note 4. Revenue Three months ended March 31, 2022 2021 (in thousands) Systems $ 151,801 $ 80,991 Aftermarket 51,794 51,785 Total Revenue $ 203,595 $ 132,776 Three months ended March 31, 2022 2021 (in thousands) North America $ 24,913 $ 9,508 Asia Pacific 149,240 103,391 Europe 29,442 19,877 Total Revenue $ 203,595 $ 132,776 March 31, December 31, 2022 2021 (in thousands) Contract liabilities $ 74,840 $ 68,436 Three months ended March 31, 2022 2021 (in thousands) Balance, beginning of the period $ 68,436 $ 23,058 Deferral of revenue 23,394 11,264 Recognition of deferred revenue (16,990) (12,180) Balance, end of the period $ 74,840 $ 22,142 |
Receivables and Allowances for
Receivables and Allowances for Credit Losses | 3 Months Ended |
Mar. 31, 2022 | |
Receivables and Allowances for Credit Losses | |
Receivables and Allowances 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 months ended March 31, 2022 and 2021, respectively: Three months ended March 31, 2022 2021 (in thousands) Balance, beginning of period $ — $ — Provision for credit losses — — Charge-offs — — Recoveries — — Balance, end of period $ — $ — |
Computation of Net Earnings per
Computation of Net Earnings per Share | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 2021 (in thousands, except per share amounts) Net income available to common stockholders $ 41,614 $ 16,480 Weighted average common shares outstanding used in computing basic income per share 33,245 33,715 Incremental options and RSUs 729 928 Weighted average common shares used in computing diluted net income per share 33,974 34,643 Net income per share Basic $ 1.25 $ 0.49 Diluted $ 1.22 $ 0.48 Diluted weighted average common shares outstanding does not include 4,706 and 1,429 common equivalent shares issuable with respect to outstanding equity awards for the three-month periods ended March 31, 2022 and 2021, respectively, as their effect would have been anti-dilutive. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2022 | |
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 three months ended March 31, 2022: Foreign Defined benefit currency pension plan Total (in thousands) Balance at December 31, 2021 $ 2,064 $ (299) $ 1,765 Other comprehensive loss and pension reclassification (1,186) 9 (1,177) Balance at March 31, 2022 $ 878 $ (290) $ 588 |
Cash, cash equivalents and rest
Cash, cash equivalents and restricted cash | 3 Months Ended |
Mar. 31, 2022 | |
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: March 31, December 31, 2022 2021 (in thousands) Cash and cash equivalents $ 297,141 $ 294,923 Long-term restricted cash 755 757 Total cash, cash equivalents and restricted cash $ 297,896 $ 295,680 As of March 31, 2022, 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 | 3 Months Ended |
Mar. 31, 2022 | |
Inventories, net | |
Inventories, net | Note 9. Inventories, net The components of inventories are as follows: March 31, December 31, 2022 2021 (in thousands) Raw materials $ 140,138 $ 133,784 Work in process 45,537 43,164 Finished goods (completed systems) 18,163 18,036 Inventories, net $ 203,838 $ 194,984 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 | 3 Months Ended |
Mar. 31, 2022 | |
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: Three months ended March 31, 2022 2021 (in thousands) Balance at January 1 (beginning of year) $ 6,924 $ 4,612 Warranties issued during the period 2,140 1,288 Settlements made during the period (1,430) (968) Changes in estimate of liability for pre-existing warranties during the period 375 (192) Balance at March 31 (end of period) $ 8,009 $ 4,740 Amount classified as current $ 7,203 $ 4,181 Amount classified as long-term 806 559 Total warranty liability $ 8,009 $ 4,740 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
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: March 31, 2022 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 $ 264,892 $ — $ — $ 264,892 December 31, 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 $ 261,090 $ — $ — $ 261,090 (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 | 3 Months Ended |
Mar. 31, 2022 | |
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 $47.2 million as of March 31, 2022. 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 March 31, 2022, 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 stock repurchase program, and (ii) establish 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 | 3 Months Ended |
Mar. 31, 2022 | |
Income Taxes | |
Income Taxes | Note 13. Income Taxes Income tax expense was $4.3 million for the three months ended March 31, 2022, compared to $1.7 million for the three months ended March 31, 2021. The $2.6 million increase was primarily due to a $27.7 million increase in pretax income. During the three months ended March 31, 2022, an international tax audit commenced, and we have determined that it is not more likely than not that certain tax positions being examined by the tax authorities will be sustained. Therefore, we have recorded a liability of $0.7 million related to our estimated exposure as of March 31, 2022. We will assess this tax reserve in subsequent quarters until final settlement. The effective tax rate for the three months ended March 31, 2022 was less than the U.S. statutory rate of 21% due to forecasted Foreign Derived Intangible Income (FDII), Federal research and development tax credits and a favorable discrete item related to equity compensation that reduces the annual tax rate. The effective tax rate for the three months ended March 31, 2021 was less than the U.S. statutory rate of 21% due to favorable discrete items related to equity compensation in the period and Federal research and development tax credits that reduce the annual tax rate. The Deferred income taxes of $36.2 million and $35.5 million as of March 31, 2022 and December 31, 2021, respectively, reflect the net tax effect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, as well as the tax effect of carryforwards. We have recorded a $8.6 million valuation allowance in the U.S. against certain tax credits and state net operating losses due to the uncertainty of their realization. Realization of our net deferred tax assets is dependent on future taxable income. We believe it is more likely than not that such assets will be realized; however, ultimate realization could be impacted by market conditions and other variables not known or anticipated at this time. |
Concentration of Risk
Concentration of Risk | 3 Months Ended |
Mar. 31, 2022 | |
Concentration of Risk | |
Concentration of Risk | Note 14. Concentration of Risk For the three months ended March 31, 2022, two customers accounted for 15.0% and 11.1% of total revenue, respectively. For the three months ended March 31, 2021, one customer accounted for 29.6% of total revenue. At March 31, 2022, three customers accounted for 19.1%, 16.6% and 10.3% of accounts receivable, respectively. At December 31, 2021, two customers accounted for 29.1% and 13.6% of accounts receivable, respectively. |
Share Repurchase
Share Repurchase | 3 Months Ended |
Mar. 31, 2022 | |
Share Repurchase | |
Share Repurchase | Note 15. Share Repurchase In February 2022, our Board of Directors approved stock repurchases of up to $100 million of our common stock, beginning in March 2022. During March 2022, we purchased 0.3 million shares at an average cost of $70.41 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 are returned to the status of authorized but unissued shares. Accordingly, the repurchases 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 | 3 Months Ended |
Mar. 31, 2022 | |
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. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases | |
Schedule of operating and finance lease right-of-use assets and related lease obligations | March 31, December 31, Leases Classification 2022 2021 Assets (in thousands) Operating leases Operating lease assets $ 9,403 $ 9,242 Finance lease Finance lease assets * 18,914 19,238 Total leased assets $ 28,317 $ 28,480 Liabilities Current Operating Other current liabilities $ 5,106 $ 4,716 Finance Current portion of finance lease obligation 1,039 979 Noncurrent Operating Other long-term liabilities 4,170 4,357 Finance Finance lease obligation 46,128 46,415 Total lease liabilities $ 56,443 $ 56,467 *Finance lease assets are recorded net of accumulated depreciation of $48.9 million and includes $0.6 million of prepaid financing costs as of March 31, 2022. Finance lease assets are recorded net of accumulated depreciation of $48.6 million and includes $0.7 million of prepaid financing costs as of December 31, 2021. |
Schedule of lease costs | Three months ended March 31, Lease cost Classification 2022 2021 Operating lease cost (in thousands) Product / Services Cost of revenue $ 1,210 $ 639 Research and development Operating expenses 56 130 Sales and marketing* Operating expenses 418 378 General and administrative* Operating expenses 211 260 Total operating lease cost $ 1,895 $ 1,407 Finance lease cost Depreciation of leased assets Cost of revenue, R&D, Sales and marketing and G&A $ 324 $ 328 Interest on lease liabilities Interest expense 1,258 1,279 Total finance lease cost $ 1,582 $ 1,607 Total lease cost $ 3,477 $ 3,014 * Sales and marketing and general and administrative expense also includes short-term lease and variable lease costs of approximately $0.5 million and $0.4 million for the three months ended March 31, 2022 and 2021, respectively. |
Schedule of future minimum operating and finance leases | Finance Operating Total Maturity of Lease Liabilities Leases Leases Leases (in thousands) 2022 $ 4,493 $ 4,075 $ 8,568 2023 6,114 3,188 9,302 2024 6,252 1,032 7,284 2025 5,930 718 6,648 2026 6,008 482 6,490 Thereafter 67,715 78 67,793 Total lease payments $ 96,512 $ 9,573 $ 106,085 Less interest portion* (49,345) (297) (49,642) Finance lease and operating lease obligations $ 47,167 $ 9,276 $ 56,443 * 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 | March 31, Lease term and discount rate 2022 Weighted-average remaining lease term (years): Operating leases 2.6 Finance leases 14.8 Weighted-average discount rate: Operating leases 4.5% Finance leases 10.5% |
Schedule of cash outflows by lease type | Three months ended March 31, Cash paid for amounts included in the measurement of lease liabilities 2022 2021 (in thousands) Operating cash outflows from operating leases $ 1,896 $ 1,407 Operating cash outflows from finance leases 1,258 1,279 Financing cash outflows from finance leases 229 175 Operating lease assets obtained in exchange for operating lease liabilities 1,638 791 Finance lease assets obtained in exchange for new finance lease liabilities — — |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue. | |
Schedule of revenue by discipline | Three months ended March 31, 2022 2021 (in thousands) Systems $ 151,801 $ 80,991 Aftermarket 51,794 51,785 Total Revenue $ 203,595 $ 132,776 |
Schedule of revenue by geographic markets | Three months ended March 31, 2022 2021 (in thousands) North America $ 24,913 $ 9,508 Asia Pacific 149,240 103,391 Europe 29,442 19,877 Total Revenue $ 203,595 $ 132,776 |
Schedule of Contract liabilities | March 31, December 31, 2022 2021 (in thousands) Contract liabilities $ 74,840 $ 68,436 Three months ended March 31, 2022 2021 (in thousands) Balance, beginning of the period $ 68,436 $ 23,058 Deferral of revenue 23,394 11,264 Recognition of deferred revenue (16,990) (12,180) Balance, end of the period $ 74,840 $ 22,142 |
Receivables and Allowances fo_2
Receivables and Allowances for Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Receivables and Allowances for Credit Losses | |
Schedule of allowances for credit losses related to trade receivables | Three months ended March 31, 2022 2021 (in thousands) Balance, beginning of period $ — $ — Provision for credit losses — — Charge-offs — — Recoveries — — Balance, end of period $ — $ — |
Computation of Net Earnings p_2
Computation of Net Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Computation of Net Earnings per Share | |
Schedule of components of net income per share | Three months ended March 31, 2022 2021 (in thousands, except per share amounts) Net income available to common stockholders $ 41,614 $ 16,480 Weighted average common shares outstanding used in computing basic income per share 33,245 33,715 Incremental options and RSUs 729 928 Weighted average common shares used in computing diluted net income per share 33,974 34,643 Net income per share Basic $ 1.25 $ 0.49 Diluted $ 1.22 $ 0.48 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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, 2021 $ 2,064 $ (299) $ 1,765 Other comprehensive loss and pension reclassification (1,186) 9 (1,177) Balance at March 31, 2022 $ 878 $ (290) $ 588 |
Cash, cash equivalents and re_2
Cash, cash equivalents and restricted cash (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Cash, cash equivalents and restricted cash | |
Schedule of reconciliation of cash, cash equivalents and restricted cash | March 31, December 31, 2022 2021 (in thousands) Cash and cash equivalents $ 297,141 $ 294,923 Long-term restricted cash 755 757 Total cash, cash equivalents and restricted cash $ 297,896 $ 295,680 |
Inventories, net (Tables)
Inventories, net (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Inventories, net | |
Schedule of components of inventories | March 31, December 31, 2022 2021 (in thousands) Raw materials $ 140,138 $ 133,784 Work in process 45,537 43,164 Finished goods (completed systems) 18,163 18,036 Inventories, net $ 203,838 $ 194,984 |
Product Warranty (Tables)
Product Warranty (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Product Warranty | |
Schedule of product warranty liability | Three months ended March 31, 2022 2021 (in thousands) Balance at January 1 (beginning of year) $ 6,924 $ 4,612 Warranties issued during the period 2,140 1,288 Settlements made during the period (1,430) (968) Changes in estimate of liability for pre-existing warranties during the period 375 (192) Balance at March 31 (end of period) $ 8,009 $ 4,740 Amount classified as current $ 7,203 $ 4,181 Amount classified as long-term 806 559 Total warranty liability $ 8,009 $ 4,740 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Measurements | |
Schedule of Company's assets and liabilities by level within the fair value hierarchy | March 31, 2022 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 $ 264,892 $ — $ — $ 264,892 December 31, 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 $ 261,090 $ — $ — $ 261,090 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Stock-Based Compensation | ||
Stock-based compensation expense | $ 2,700 | $ 2,400 |
Proceeds from exercise of stock options | $ 491 | $ 2,512 |
Common Stock | ||
Stock-Based Compensation | ||
Exercise of stock options (in shares) | 41 | 268 |
Common Stock | Restricted Stock Units | ||
Stock-Based Compensation | ||
Exercise of stock options (in shares) | 100 | 300 |
Leases (Details)
Leases (Details) | 3 Months Ended |
Mar. 31, 2022 | |
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 | 5 years |
Leases - Operating and Finance
Leases - Operating and Finance Lease Right-of-use-assets and Related Lease Obligations (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Leases | ||
Operating lease assets | $ 9,403 | $ 9,242 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Operating lease assets | Operating lease assets |
Finance lease assets | $ 18,914 | $ 19,238 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Finance lease assets | Finance lease assets |
Total leased assets | $ 28,317 | $ 28,480 |
Operating liabilities current | $ 5,106 | $ 4,716 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other Liabilities, Current | Other Liabilities, Current |
Finance liabilities current | $ 1,039 | $ 979 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Finance liabilities current | Finance liabilities current |
Operating liabilities noncurrent | $ 4,170 | $ 4,357 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Finance liabilities noncurrent | $ 46,128 | $ 46,415 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Finance liabilities noncurrent | Finance liabilities noncurrent |
Total lease liabilities | $ 56,443 | $ 56,467 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other Liabilities, Current, Other Liabilities, Noncurrent | Other Liabilities, Current, Other Liabilities, Noncurrent |
Finance lease, accumulated depreciation | $ 48,900 | $ 48,600 |
Prepaid financing costs | $ 600 | $ 700 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Lease cost | ||
Total operating lease cost | $ 1,895 | $ 1,407 |
Depreciation of leased assets | 324 | 328 |
Interest on lease liabilities | 1,258 | 1,279 |
Total finance lease cost | 1,582 | 1,607 |
Total lease cost | 3,477 | 3,014 |
Short-term lease and variable lease costs | 500 | 400 |
Product / Services | ||
Lease cost | ||
Total operating lease cost | 1,210 | 639 |
Research and development | ||
Lease cost | ||
Total operating lease cost | 56 | 130 |
Sales and marketing* | ||
Lease cost | ||
Total operating lease cost | 418 | 378 |
General and administrative* | ||
Lease cost | ||
Total operating lease cost | $ 211 | $ 260 |
Leases - Future Minimum Cash Ou
Leases - Future Minimum Cash Outflow and Weighted-average Remaining Lease Term and Discount Rate (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Future minimum lease payments finance lease | ||
2022 | $ 4,493 | |
2023 | 6,114 | |
2024 | 6,252 | |
2025 | 5,930 | |
2026 | 6,008 | |
Thereafter | 67,715 | |
Total lease payments | 96,512 | |
Less interest portion | (49,345) | |
Finance lease obligations | 47,167 | |
Future minimum lease payments operating lease | ||
2022 | 4,075 | |
2023 | 3,188 | |
2024 | 1,032 | |
2025 | 718 | |
2026 | 482 | |
Thereafter | 78 | |
Total lease payments | 9,573 | |
Less interest portion | (297) | |
Operating lease obligations | 9,276 | |
Future minimum lease payments finance and operating lease | ||
2022 | 8,568 | |
2023 | 9,302 | |
2024 | 7,284 | |
2025 | 6,648 | |
2026 | 6,490 | |
Thereafter | 67,793 | |
Total lease payments | 106,085 | |
Less interest portion | (49,642) | |
Total lease liabilities | $ 56,443 | $ 56,467 |
Lease term and discount rate | ||
Operating leases -Weighted-average remaining lease term (in years) | 2 years 7 months 6 days | |
Finance leases - Weighted-average remaining lease term (in years) | 14 years 9 months 18 days | |
Operating leases - Weighted-average discount rate | 4.50% | |
Finance leases - Weighted-average discount rate | 10.50% | |
Finance lease term | 22 years | |
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 | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Leases | ||
Operating cash outflows from operating leases | $ 1,896 | $ 1,407 |
Operating cash outflows from finance leases | 1,258 | 1,279 |
Financing cash outflows from finance leases | 229 | 175 |
Operating lease assets obtained in exchange for operating lease liabilities | $ 1,638 | $ 791 |
Revenue (Details)
Revenue (Details) | 3 Months Ended |
Mar. 31, 2022 | |
Systems | |
Disaggregation of Revenue | |
Payment upon shipment of tool, as a percent | 90.00% |
Payment upon installation, as a percent | 10.00% |
Aftermarket | Minimum | |
Disaggregation of Revenue | |
Payment upon delivery of parts, period | 30 days |
Aftermarket | 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 | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue | ||
Total Revenue | $ 203,595 | $ 132,776 |
North America | ||
Disaggregation of Revenue | ||
Total Revenue | 24,913 | 9,508 |
Asia Pacific | ||
Disaggregation of Revenue | ||
Total Revenue | 149,240 | 103,391 |
Europe | ||
Disaggregation of Revenue | ||
Total Revenue | 29,442 | 19,877 |
Systems | ||
Disaggregation of Revenue | ||
Total Revenue | 151,801 | 80,991 |
Aftermarket | ||
Disaggregation of Revenue | ||
Total Revenue | $ 51,794 | $ 51,785 |
Revenue - Contract liabilities
Revenue - Contract liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Revenue. | ||||
Contract liabilities | $ 74,840 | $ 68,436 | $ 22,142 | $ 23,058 |
Revenue - Deferred revenue (Det
Revenue - Deferred revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue. | ||
Balance, beginning of the period | $ 68,436 | $ 23,058 |
Deferral of revenue | 23,394 | 11,264 |
Recognition of deferred revenue | (16,990) | (12,180) |
Balance, end of the period | $ 74,840 | $ 22,142 |
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 | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Computation of Net Earnings per Share | ||
Net income available to common stockholders | $ 41,614 | $ 16,480 |
Weighted average common shares outstanding used in computing basic income per share | 33,245 | 33,715 |
Incremental options and RSUs | 729 | 928 |
Weighted average common shares used in computing diluted net income per share | 33,974 | 34,643 |
Net income per share | ||
Basic | $ 1.25 | $ 0.49 |
Diluted | $ 1.22 | $ 0.48 |
Anti-dilutive common equivalent shares excluded from calculation | 4,706 | 1,429 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Changes in accumulated other comprehensive income, net of tax | ||
Balance at December 31, 2021 | $ 1,765 | |
Other comprehensive income and pension reclassification | (1,177) | $ (1,352) |
Balance at March 31, 2022 | 588 | |
Foreign currency | ||
Changes in accumulated other comprehensive income, net of tax | ||
Balance at December 31, 2021 | 2,064 | |
Other comprehensive income and pension reclassification | (1,186) | |
Balance at March 31, 2022 | 878 | |
Defined benefit pension plans | ||
Changes in accumulated other comprehensive income, net of tax | ||
Balance at December 31, 2021 | (299) | |
Other comprehensive income and pension reclassification | 9 | |
Balance at March 31, 2022 | $ (290) |
Cash, cash equivalents and re_3
Cash, cash equivalents and restricted cash (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Cash and cash equivalents | $ 297,141 | $ 294,923 | ||
Long-term restricted cash | 755 | 757 | ||
Total cash, cash equivalents and restricted cash | 297,896 | $ 295,680 | $ 207,519 | $ 204,232 |
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 | Mar. 31, 2022 | Dec. 31, 2021 |
Inventories, net | ||
Raw materials | $ 140,138 | $ 133,784 |
Work in process | 45,537 | 43,164 |
Finished goods (completed systems) | 18,163 | 18,036 |
Inventories, net | $ 203,838 | $ 194,984 |
Product Warranty (Details)
Product Warranty (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Product Warranty | |||
Product warranty period | 1 year | ||
Changes in standard product warranty liability | |||
Balance at January 1 (beginning of year) | $ 6,924 | $ 4,612 | |
Warranties issued during the period | 2,140 | 1,288 | |
Settlements made during the period | (1,430) | (968) | |
Changes in estimate of liability for pre-existing warranties during the period | 375 | (192) | |
Balance at March 31 (end of period) | 8,009 | 4,740 | |
Product warranty classification | |||
Amount classified as current | 7,203 | 4,181 | $ 6,424 |
Amount classified as long-term | 806 | 559 | |
Total warranty liability | $ 8,009 | $ 4,740 | $ 6,924 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Recurring - Money market funds, US Government Securities and Agency Investments - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Estimate of fair value measurement | ||
Fair Value Measurements | ||
Money market funds, U.S. Government Securities and Agency Investments | $ 264,892 | $ 261,090 |
Level 1 | ||
Fair Value Measurements | ||
Money market funds, U.S. Government Securities and Agency Investments | $ 264,892 | $ 261,090 |
Financing Arrangements (Details
Financing Arrangements (Details) - USD ($) $ in Thousands | Jan. 30, 2015 | Mar. 31, 2022 | Dec. 31, 2021 | Jul. 31, 2020 |
Financing Arrangements | ||||
Long-term finance lease obligation | $ 46,128 | $ 46,415 | ||
Sale leaseback obligation | ||||
Financing Arrangements | ||||
Long-term finance lease obligation | 47,200 | |||
Security deposit | 5,900 | |||
Beverly Property Owner LLC | Building | ||||
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 | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Valuation allowance | |||
Income tax expense | $ 4,269 | $ 1,721 | |
Increase in income tax expense | 2,600 | ||
Increase in pretax income | 27,700 | ||
Uncertain tax position | 700 | ||
Deferred tax assets, net | 36,226 | $ 35,454 | |
Deferred tax assets valuation allowance | $ 8,600 | ||
Maximum | |||
Valuation allowance | |||
Statutory income tax rate (as a percent) | 21.00% | 21.00% |
Concentration of Risk (Details)
Concentration of Risk (Details) - customer | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Total revenue | Customer concentration risk | |||
Concentration of Risk | |||
Number of customers | 2 | 1 | |
Total revenue | Customer concentration risk | First customer | |||
Concentration of Risk | |||
Percentage of concentration risk | 15.00% | 29.60% | |
Total revenue | Customer concentration risk | Second customer | |||
Concentration of Risk | |||
Percentage of concentration risk | 11.10% | ||
Accounts receivable | Credit concentration risk | |||
Concentration of Risk | |||
Number of customers | 3 | 2 | |
Accounts receivable | Credit concentration risk | First customer | |||
Concentration of Risk | |||
Percentage of concentration risk | 19.10% | 29.10% | |
Accounts receivable | Credit concentration risk | Second customer | |||
Concentration of Risk | |||
Percentage of concentration risk | 16.60% | 13.60% | |
Accounts receivable | Credit concentration risk | Third customer | |||
Concentration of Risk | |||
Percentage of concentration risk | 10.30% |
Share Repurchase (Details)
Share Repurchase (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended | |
Mar. 31, 2022 | Feb. 28, 2022 | |
Share Repurchase | ||
Share repurchase program common stock authorized amount | $ 100 | |
Number of shares repurchased | 0.3 | |
Average cost | $ 70.41 |