Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 20, 2024 | Jun. 30, 2023 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2023 | ||
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, $.001 par value | ||
Trading Symbol | ACLS | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 5,962,466,683 | ||
Entity Common Stock, Shares Outstanding | 32,625,760 | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Firm ID | 42 | ||
Auditor Location | Boston, Massachusetts | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001113232 | ||
Amendment Flag | false |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue: | |||
Total revenue | $ 1,130,604 | $ 919,998 | $ 662,428 |
Cost of revenue: | |||
Total cost of revenue | 639,303 | 518,208 | 375,983 |
Gross profit | 491,301 | 401,790 | 286,445 |
Operating expenses: | |||
Research and development | 96,907 | 78,356 | 65,431 |
Sales and marketing | 62,805 | 53,599 | 47,548 |
General and administrative | 65,794 | 57,474 | 46,141 |
Total operating expenses | 225,506 | 189,429 | 159,120 |
Income from operations | 265,795 | 212,361 | 127,325 |
Other income (expense): | |||
Interest income | 18,199 | 4,551 | 209 |
Interest expense | (5,347) | (5,576) | (4,835) |
Other, net | (48) | (6,451) | (2,271) |
Total other income (expense) | 12,804 | (7,476) | (6,897) |
Income before income taxes | 278,599 | 204,885 | 120,428 |
Income tax provision | 32,336 | 21,806 | 21,778 |
Net income | $ 246,263 | $ 183,079 | $ 98,650 |
Net income per share: | |||
Basic | $ 7.52 | $ 5.54 | $ 2.94 |
Diluted | $ 7.43 | $ 5.46 | $ 2.88 |
Shares used in computing net income per share: | |||
Basic weighted average shares of common stock | 32,758 | 33,043 | 33,555 |
Diluted weighted average shares of common stock | 33,165 | 33,542 | 34,268 |
Product | |||
Revenue: | |||
Total revenue | $ 1,095,650 | $ 890,582 | $ 634,445 |
Cost of revenue: | |||
Total cost of revenue | 608,112 | 492,104 | 349,558 |
Services | |||
Revenue: | |||
Total revenue | 34,954 | 29,416 | 27,983 |
Cost of revenue: | |||
Total cost of revenue | $ 31,191 | $ 26,104 | $ 26,425 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Consolidated Statements of Comprehensive Income | |||
Net income | $ 246,263 | $ 183,079 | $ 98,650 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 38 | (4,058) | (1,881) |
Amortization of actuarial net gain and other adjustments from pension plan, net of tax | 84 | 325 | 211 |
Total other comprehensive income (loss) | 122 | (3,733) | (1,670) |
Comprehensive income | $ 246,385 | $ 179,346 | $ 96,980 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 167,297 | $ 185,595 |
Short-term investments | 338,851 | 246,571 |
Accounts receivable, net | 217,964 | 169,773 |
Inventories, net | 306,482 | 242,406 |
Prepaid expenses and other current assets | 49,397 | 33,300 |
Total current assets | 1,079,991 | 877,645 |
Property, plant and equipment, net | 53,971 | 39,664 |
Operating lease assets | 30,716 | 12,146 |
Finance lease assets, net | 16,632 | 17,942 |
Long-term restricted cash | 6,654 | 752 |
Deferred income taxes | 53,428 | 31,701 |
Other assets | 40,575 | 33,791 |
Total assets | 1,281,967 | 1,013,641 |
Current liabilities: | ||
Accounts payable | 54,400 | 62,346 |
Accrued compensation | 31,445 | 35,540 |
Warranty | 14,098 | 8,299 |
Income taxes | 6,164 | 4,304 |
Deferred revenue | 164,677 | 123,471 |
Current portion of finance lease obligation | 1,511 | 1,229 |
Other current liabilities | 12,834 | 12,943 |
Total current liabilities | 285,129 | 248,132 |
Long-term finance lease obligation | 43,674 | 45,185 |
Long-term deferred revenue | 46,208 | 31,306 |
Other long-term liabilities | 42,074 | 21,762 |
Total liabilities | 417,085 | 346,385 |
Commitments and contingencies (Note 16) | ||
Stockholders' equity: | ||
Common stock, $0.001 par value, 75,000 shares authorized; 32,685 shares issued and outstanding at December 31, 2023; 32,775 shares issued and outstanding at December 31, 2022 | 33 | 33 |
Additional paid-in capital | 547,189 | 550,299 |
Retained earnings | 319,506 | 118,892 |
Accumulated other comprehensive loss | (1,846) | (1,968) |
Total stockholders' equity | 864,882 | 667,256 |
Total liabilities and stockholders' equity | $ 1,281,967 | $ 1,013,641 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Consolidated Balance Sheets | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 75,000 | 75,000 |
Common stock, shares issued | 32,685 | 32,775 |
Common stock, shares outstanding | 32,685 | 32,775 |
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 | 98,650 | 98,650 | |||
Foreign currency translation adjustments | (1,881) | (1,881) | |||
Change in pension obligation, net of tax | 211 | 211 | |||
Exercise of stock options (in shares) | 396 | ||||
Exercise of stock options | 3,687 | 3,687 | |||
Issuance of stock under Employee Stock Purchase Plan (in shares) | 26 | ||||
Issuance of stock under Employee Stock Purchase Plan | 1,179 | 1,179 | |||
Issuance of restricted common shares (in shares) | 326 | ||||
Issuance of restricted common shares | (6,564) | (6,564) | |||
Stock-based compensation expense | 12,067 | 12,067 | |||
Repurchase of common stock (in shares) | (1,141) | ||||
Repurchase of common stock | $ (1) | (20,588) | (29,403) | (49,992) | |
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 | 183,079 | 183,079 | |||
Foreign currency translation adjustments | (4,058) | (4,058) | |||
Change in pension obligation, net of tax | 325 | 325 | |||
Exercise of stock options (in shares) | 103 | ||||
Exercise of stock options | 1,247 | 1,247 | |||
Issuance of stock under Employee Stock Purchase Plan (in shares) | 29 | ||||
Issuance of stock under Employee Stock Purchase Plan | 1,662 | 1,662 | |||
Issuance of restricted common shares (in shares) | 291 | ||||
Issuance of restricted common shares | (9,907) | (9,907) | |||
Stock-based compensation expense | 13,444 | 13,444 | |||
Repurchase of common stock (in shares) | (888) | ||||
Repurchase of common stock | (16,030) | (41,465) | (57,495) | ||
Balance (in shares) at Dec. 31, 2022 | 32,775 | ||||
Balance at Dec. 31, 2022 | $ 33 | 550,299 | 118,892 | (1,968) | 667,256 |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 246,263 | 246,263 | |||
Foreign currency translation adjustments | 38 | 38 | |||
Change in pension obligation, net of tax | 84 | 84 | |||
Exercise of stock options (in shares) | 3 | ||||
Exercise of stock options | 25 | 25 | |||
Issuance of stock under Employee Stock Purchase Plan (in shares) | 16 | ||||
Issuance of stock under Employee Stock Purchase Plan | 2,057 | 2,057 | |||
Issuance of restricted common shares (in shares) | 271 | ||||
Issuance of restricted common shares | (16,611) | (16,611) | |||
Stock-based compensation expense | 18,269 | 18,269 | |||
Repurchase of common stock (in shares) | (380) | ||||
Repurchase of common stock | (6,850) | (45,649) | (52,499) | ||
Balance (in shares) at Dec. 31, 2023 | 32,685 | ||||
Balance at Dec. 31, 2023 | $ 33 | $ 547,189 | $ 319,506 | $ (1,846) | $ 864,882 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities | |||
Net income | $ 246,263 | $ 183,079 | $ 98,650 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 13,069 | 11,607 | 10,818 |
Deferred income taxes | (20,018) | 8,536 | 20,257 |
Stock-based compensation expense | 18,269 | 13,444 | 12,067 |
Provision for doubtful accounts | 1,129 | ||
Provision for excess and obsolete inventory | 5,211 | 4,565 | 3,755 |
Accretion of discounts and premiums on marketable securities | (12,077) | ||
Currency loss on foreign denominated transactions | 2,252 | 5,986 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (50,755) | (67,270) | (18,146) |
Inventories | (69,957) | (58,433) | (39,023) |
Prepaid expenses and other current assets | (16,046) | (6,533) | (3,955) |
Accounts payable and other current liabilities | (8,103) | 31,392 | 22,046 |
Deferred revenue | 56,183 | 86,366 | 45,385 |
Income taxes | 3,786 | 3,493 | 253 |
Other assets and liabilities | (12,337) | (625) | (1,917) |
Net cash provided by operating activities | 156,869 | 215,607 | 150,190 |
Cash flows from investing activities | |||
Expenditures for property, plant and equipment and capitalized software | (20,656) | (10,683) | (8,718) |
Purchase of short-term investments | (388,809) | (246,571) | |
Maturities of short-term investments | 308,607 | ||
Net cash used in investing activities | (100,858) | (257,254) | (8,718) |
Cash flows from financing activities | |||
Net settlement on restricted stock grants | (16,611) | (9,907) | (6,564) |
Repurchase of common stock | (52,499) | (57,495) | (49,992) |
Proceeds from Employee Stock Purchase Plan purchases | 2,057 | 1,662 | 1,179 |
Principal payments on finance lease obligation | (1,240) | (987) | (763) |
Proceeds from exercise of stock options | 25 | 1,247 | 3,687 |
Net cash used in financing activities | (68,268) | (65,480) | (52,453) |
Effect of exchange rate changes on cash and cash equivalents | (139) | (2,206) | 2,429 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (12,396) | (109,333) | 91,448 |
Cash, cash equivalents and restricted cash at beginning of period | 186,347 | 295,680 | 204,232 |
Cash, cash equivalents and restricted cash at end of period | 173,951 | 186,347 | 295,680 |
Supplemental disclosure of cash flow information | |||
Income taxes | 54,217 | 10,763 | 1,500 |
Interest | $ 4,874 | $ 4,992 | $ 5,086 |
Nature of Business
Nature of Business | 12 Months Ended |
Dec. 31, 2023 | |
Nature of Business | |
Nature of Business | Note 1. Nature of Business Axcelis Technologies, Inc. (“Axcelis” or the “Company”) was incorporated in Delaware in 1995, and is a worldwide producer of ion implantation and other processing equipment used in the fabrication of semiconductor chips in the United States, Europe and Asia. In addition to equipment, we provide extensive aftermarket lifecycle products and services, including spare parts, equipment upgrades, maintenance services and customer training. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies The accompanying consolidated financial statements reflect the application of certain significant accounting policies as described in this note and elsewhere in the footnotes. (a) Basis of Presentation The accompanying consolidated financial statements include the consolidated accounts of the Company and its wholly-owned, controlled subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Events occurring subsequent to December 31, 2023 have been evaluated for potential recognition or disclosure in the consolidated financial statements. (b) Use of Estimates The preparation of these consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. On an ongoing basis, we evaluate our estimates and judgments, including those related to revenue recognition, the realizable value of accounts receivable and inventories, warranty reserves, valuing stock-based compensation instruments and reserves relating to tax assets and liabilities. Actual amounts could differ from these estimates. Changes in estimates are recorded in the period in which they become known. (c) Foreign Currency The functional currency for substantially all operations outside the United States is the local currency. Financial statements for these operations are translated into United States dollars at year-end rates as to assets and liabilities and average exchange rates during the year as to revenue and expenses. The resulting translation adjustments are recorded in stockholders’ equity as an element of accumulated other comprehensive income (loss). Foreign currency transaction gains and losses are included in other income (expense) in the Consolidated Statements of Operations. For the years ended December 31, 2023, 2022, and 2021, we had foreign exchange losses of $0.5 million, $6.6 million, and $2.5 million, respectively. (d) Cash, Cash Equivalents and Short-term Investments Cash and cash equivalents consist of cash on hand and highly liquid investments with original maturities of ninety days or less. Cash equivalents consist primarily of money market funds, U.S. Government and Agency Securities and deposit accounts. Cash equivalents are carried on the balance sheet at fair market value. Short-term investments are h ighly liquid investments with original maturities of greater than 90 days but less than one year from date of purchase and are carried on the balance sheet at amortized cost. Our short-term investments consist primarily of U.S. Government and Agency securities and are classified as held-to-maturity based on our positive intent and ability to hold the securities to maturity. Income related to these securities is recorded in interest income in the Consolidated Statements of Operations (e) Inventories Inventories are carried at the lower of cost or net realizable value, determined using the first-in, first-out (“FIFO”) method. We periodically review our inventories and make provisions as necessary for estimated obsolescence or damaged goods to ensure values approximate lower of cost or net realizable value. The amount of such markdowns is equal to the difference between cost of inventory and the estimated market value based upon assumptions about future demands, selling prices, and market conditions. We record a provision for estimated excess inventory. The provision is determined using management’s assumptions of materials usage, based on estimates of demand, market conditions, and the size and utilization of our installed base. If actual market conditions become less favorable than those projected by management, additional inventory write-downs may be required. (f) Property, Plant and Equipment and Leased Assets Property, plant and equipment are stated at cost, less accumulated depreciation and amortization. On January 30, 2015, we sold our corporate headquarters facility. As part of this sale, we also entered into a 22-year lease agreement. We accounted for the sale leaseback transaction as a financing arrangement for financial reporting purposes. We retained the historical costs of the property and the related accumulated depreciation on our financial books within property, plant and equipment and will continue to depreciate the property for financial reporting purposes over the lesser of its remaining useful life or its initial lease term of 22 years Depreciation and amortization are recorded using the straight-line method over the estimated useful lives of the related assets as follows: Asset Classification Estimated Useful Life Land, buildings and equipment (under lease) Lesser of the lease term or estimated useful life of the asset Machinery and equipment 3 to 10 years Repairs and maintenance costs are expensed as incurred. Expenditures greater than $2.5 thousand for renewals and betterments are capitalized and depreciated over their useful lives. (g) Impairment of Long-Lived Assets We record impairment losses on long-lived assets when events and circumstances indicate that these assets might not be recoverable. Recoverability is assessed by a comparison of the assets’ carrying amount to their expected future undiscounted net cash flows. If such assets are considered to be impaired, the impairment is measured based on the amount by which the carrying value exceeds its fair value. We did not have any indicators of impairment during the period ending December 31, 2023. We did not record an impairment charge in the years ended December 31, 2023, 2022, or 2021. Actual performance could be materially different from our current forecasts, which could impact estimates of undiscounted cash flows and may result in the impairment of the carrying amount of the long-lived assets in the future. This could be caused by strategic decisions made in response to economic and competitive conditions, the impact of the economic environment on our customer base, or a material adverse change in our relationships with significant customers. (h) Concentration of Risk and Off-Balance Sheet Risk Financial instruments that potentially subject us to concentrations of credit risk are principally cash equivalents, short-term investments and accounts receivable. Our cash equivalents and short-term investments are principally maintained in investment grade money-market funds, U.S. Government and Agency Securities and deposit accounts. We have no significant off-balance-sheet risk such as currency exchange contracts, option contracts or other hedging arrangements. Our exposure to market risk for changes in interest rates relates primarily to cash equivalents and short-term investments. The primary objective of our investment activities is to preserve principal without significantly increasing risk. This is accomplished by investing in marketable investment grade securities. We do not use derivative financial instruments to manage our investment portfolio and do not expect operating results or cash flows to be affected to any significant degree by any change in market interest rates. We perform ongoing credit evaluations of our customers’ financial condition and generally require no collateral to secure accounts receivable. For selected overseas sales, we require customers to obtain letters of credit before product is shipped. We maintain an allowance for doubtful accounts based on our assessment of the collectability of accounts receivable. We review the allowance for doubtful accounts quarterly. We do not have any off-balance sheet credit exposure related to our customers. Our customers consist of semiconductor chip manufacturers located throughout the world and net sales to our ten largest customers accounted for 51.7%, 59.4% and 69.5% of revenue in 2023, 2022 and 2021, respectively. For the year ended December 31, 2023, we had no customers representing 10% or greater of total revenue. For the year ended December 31, 2022, we had two customers representing 13.1% and 11.5% of total revenue, respectively. For the year ended December 31, 2021, we had two customers representing 17.8% and 15.4% of total revenue, respectively. As of December 31, 2023, we had one customer account for 12.2% of consolidated accounts receivable. As of December 31, 2022, we had two customers account for 19.4% and 11.5% of consolidated accounts receivable, respectively. Some of the components and sub-assemblies included in our products are obtained either from a sole source or a limited group of suppliers. Disruption to our supply source, resulting either from economic conditions or other factors, could affect our ability to deliver products to our customers. (i) Revenue Recognition We recognize revenue in accordance with Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers 1) Identify the contract with the customer A contract with a customer exists when (i) we enter into an enforceable contract with a customer that defines each party’s rights regarding the goods or services to be transferred and identifies the related payment terms, (ii) the contract has commercial substance, and (iii) we determine that collection of substantially all consideration for goods and services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. 2) Identify the performance obligations in the contract Performance obligations promised in a contract are identified based on the goods and services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the good or service either on its own or together with other available resources, and are distinct in the context of the contract, whereby the transfer of the good or service is separately identifiable from other promises in the contract. To the extent a contract includes multiple promised goods and services, we must apply judgment to determine whether promised goods and services are capable of being distinct and distinct in the context of the contract. If these criteria are not met, the promised goods and services are accounted for as a combined performance obligation. Systems sales consist of multiple performance obligations, including the system itself and obligations that are not delivered simultaneously with the system. These undelivered obligations might include a combination of installation services, extended warranty and support and spare parts, all of which are generally covered by a single sales price. The Aftermarket business includes both products and services type arrangements. Performance obligations in these contracts consist of used tools, spare parts, equipment upgrades, maintenance services and customer training. Customers who purchase new systems are provided an assurance-type warranty for one year after acceptance of the tool. For aftermarket transactions, we provide customers an assurance-type warranty for 90 days. Customers can choose to purchase extended warranty terms with enhanced support similar to a service-type warranty ranging from one . In accordance with ASC 606, assurance-type warranties are not considered a performance obligation, whereas service-type warranties are. 3) Determine the transaction price The transaction price is determined based on the consideration to which we will be entitled in exchange for transferring goods and services to the customer. To the extent the transaction price includes variable consideration, we estimate the amount of variable consideration that should be included in the transaction price utilizing either the expected value method or the most likely amount method depending on the nature of the variable consideration. Variable consideration is included in the transaction price if, in our judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Any estimates, including the effect of the constraint on variable consideration, are evaluated at each reporting period for any changes. In applying this guidance, Companies must also consider whether any significant financing components exist. The transaction price for all transactions is based on the price reflected in the individual customer’s purchase order. Variable consideration has not been identified as a significant component of the transaction price for any of our transactions. For those transactions where all performance obligations will be satisfied within one year or less, we apply the practical expedient outlined in ASC 606-10-32-18. This practical expedient allows us not to adjust promised consideration for the effects of a significant financing component if we expect at contract inception that the period between when we transfer the promised good or service to a customer and when the customer pays for that good or service will be one year or less. For those transactions that are expected to be completed after one year, we have assessed that there are no significant financing components because any difference between the promised consideration and the cash selling price of the good or service is for reasons other than the provision of financing. 4) Allocate the transaction price to performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation on a relative standalone selling price basis unless the transaction price is variable and meets the criteria to be allocated entirely to a performance obligation or to a distinct service that forms part of a single performance obligation. Where required, we determine standalone selling price (“SSP”) for each obligation based on consideration of both market and Company specific factors, including the selling price and profit margin for similar products, the cost to produce, and the anticipated margin. For those contracts that contain multiple performance obligations (primarily systems sales, as well as some aftermarket contracts requiring both time and material inputs), we must determine the SSP. We use a cost plus margin approach in determining the SSP for any materials related performance obligations (such as upgrades, spare parts, systems). To determine the SSP for labor related performance obligations (such as the labor component of installation), we use directly observable inputs based on the standalone sale prices for these services. 5) Recognize revenue when or as we have satisfied a performance obligation We satisfy performance obligations either over time or at a point in time. Revenue is recognized over time if either 1) the customer simultaneously receives and consumes the benefits provided by the entity’s performance, 2) the entity’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced, or 3) the entity’s performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date. If the entity does not satisfy a performance obligation over time, the related performance obligation is satisfied at a point in time by transferring the control of a promised good or service to a customer. Examples of control are using the asset to produce goods or services, enhance the value of other assets or settle liabilities, and holding or selling the asset. For over time recognition, ASC 606 requires us to select a single revenue recognition method for the performance obligation that faithfully depicts our performance in transferring control of the goods and services. The guidance allows entities to choose between two methods to measure progress toward complete satisfaction of a performance obligation: Output methods - recognize revenue on the basis of direct measurements of the value to the customer of the goods or services transferred to date relative to the remaining goods or services promised under the contract (e.g., surveys of performance completed to date, appraisals of results achieved, milestones reached, time elapsed, and units produced or units delivered); and Input methods - recognize revenue on the basis of the entity’s efforts or inputs to the satisfaction of a performance obligation (e.g., resources consumed, labor hours expended, costs incurred, or time elapsed) relative to the total expected inputs to the satisfaction of that performance obligation. We have the right to consideration from a customer in an amount that corresponds directly with the value to the customer of the entity’s performance completed to date (i.e., certain aftermarket contracts), as such we have elected a practical expedient to recognize revenue in the amount to which the entity has a right to invoice for such services. Product related revenues (whether for systems or aftermarket business) are recognized at a point in time, when they are shipped or delivered, depending on shipping terms. For installation services, revenue is recognized at a point in time, once the installation of the tool is complete. The nature of the installation services is such that the customer does not simultaneously receive and consume the benefits provided by the entity’s performance, nor does performance of installation services create or enhance an asset that the customer controls. Installation services do not create an asset with an alternative use to the entity, and the entity does not have an enforceable right to payment for performance completed to date. Contract liabilities are reflected as deferred revenue on the consolidated balance sheet. Contract liabilities relate to payments invoiced or received in advance of completion of performance obligations under a contract. Contract liabilities are recognized as revenue upon the fulfillment of performance obligations. Service-type warranties for any product are recognized over time, as these represent a stand ready obligation to service the product during the warranty period. Progress in the satisfaction of these performance obligations is measured using an input method of time elapsed. Maintenance and service contracts are recognized over time. Progress in the satisfaction of these performance obligations is measured using an input method of either time elapsed in the case of fixed period contracts, or labor hours expended, in the case of project-based contracts. (j) Recognizing Assets related to Recoverable Customer Contract Costs We recognize an asset related to incremental costs incurred by us to obtain a contract with a customer if we expect to recover those costs. We will recognize an asset from costs incurred to fulfill a contract only if such costs relate directly to a contract with an entity that we can specifically identify, the costs incurred will generate or enhance resources that will be used in satisfying performance obligations in the future, and the costs are expected to be recovered. Any assets recognized related to costs to obtain or fulfill a contract are amortized on a systematic basis that is consistent with the transfer to the customer of the goods or services to which the asset relates. In substantially all of our business transactions, we incur incremental costs to obtain contracts with customers, in the form of sales commissions. We maintain a commission program which awards our employees for System sales, aftermarket activity and other individual goals. Under ASC 606, an asset is amortized on a systematic basis that is consistent with the transfer to the customer of the goods or services to which the asset relates. However, ASC 606 provides a practical expedient to allow for the recognition of commission expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less. Based on the nature of our commission agreements, all commissions are expensed as incurred based upon the expectation that the amortization period would be one year or less. (k) Shipping and Handling Costs Shipping and handling costs are included in cost of revenue. (l) Stock-Based Compensation We generally recognize compensation expense for all stock-based payments to employees and directors, including grants of stock options and restricted stock units, based on the grant-date fair value of those stock-based payments. For stock option awards, we use the Black-Scholes option pricing model, adjusted for expected forfeitures. Other valuation models may be utilized in the limited circumstances where awards with market-based vesting considerations, such as the price of our common stock, or performance-based awards, are granted. Stock-based compensation expense is recognized ratably over the requisite service period. For each stock option or restricted stock unit grant with vesting based on a combination of time, market or performance conditions, where vesting will occur if either condition is met, the related compensation costs are recognized over the shorter of the explicit service period or the derived service period. See Note 13 for additional information relating to stock-based compensation. (m) Income Taxes We record income taxes using the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax basis, and operating loss and tax credit carryforwards. Our consolidated financial statements contain certain deferred tax assets which have arisen primarily as a result of operating losses, as well as other temporary differences between financial and tax basis accounting. We establish a valuation allowance if the likelihood of realization of the deferred tax assets is reduced based on an evaluation of objective verifiable evidence. Significant management judgment is required in determining our provision for income taxes, our deferred tax assets and liabilities and any valuation allowance recorded against those net deferred tax assets. We evaluate the weight of all available evidence to determine whether it is more likely than not that some portion or all of the net deferred income tax assets will not be realized. Income taxes include the largest amount of tax benefit for an uncertain tax position that is more likely than not to be sustained upon audit based on the technical merits of the tax position. Settlements with tax authorities, the expiration of statutes of limitations for particular tax positions, or obtaining new information on particular tax positions may cause a change to the effective tax rate. We recognize accrued interest related to unrecognized tax benefits as interest expense and penalties within operating expense in the consolidated statements of operations. See Note 18 for additional information relating to income taxes. (n) Computation of Net Income per Share Basic earnings per share is computed by dividing income available to common stockholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) for the period. The computation of diluted earnings per share is similar to basic earnings per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive common shares had been issued, calculated using the treasury stock method. The components of net income per share are as follows: Year ended December 31, 2023 2022 2021 (in thousands, except per share data) Net income available to common stockholders $ 246,263 $ 183,079 $ 98,650 Weighted average shares of common stock outstanding used in computing basic income per share 32,758 33,043 33,555 Incremental options and RSUs 407 499 713 Weighted average shares of common stock used in computing diluted net income per share 33,165 33,542 34,268 Net income per share Basic $ 7.52 $ 5.54 $ 2.94 Diluted $ 7.43 $ 5.46 $ 2.88 Diluted weighted average common shares outstanding does not include restricted stock units outstanding to purchase 6,025, 4,929 and 2,554 common equivalent shares for the periods ended December 31, 2023, 2022 and 2021, respectively, as their effect would have been anti-dilutive. (o) Accumulated Other Comprehensive Loss The following table presents the changes in accumulated other comprehensive loss, net of tax, by component, for the year ended December 31, 2023: Foreign Defined benefit currency pension plan Total (in thousands) Balance at December 31, 2022 $ (1,994) $ 26 $ (1,968) Other comprehensive income and pension reclassification 38 84 122 Balance at December 31, 2023 $ (1,956) $ 110 $ (1,846) (p) Recent Accounting Guidance In November 2023 the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ("ASU 2023-07"). ASU 2023-07 is intended to enhance disclosures for significant segment expenses for all public entities required to report segment information in accordance with ASC Topic 280, Segment Reporting ("ASC 280"). ASC 280 requires a public entity to report for each reportable segment a measure of segment profit or loss that its chief operating decision maker (“CODM”) uses to assess segment performance and to make decisions about resource allocations. ASU 2023-07 is intended to improve financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more useful financial analyses. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. A public entity should apply ASU 2023-07 retrospectively to all prior periods presented in the consolidated financial statements. The Company is currently evaluating the impact of ASU 2023-07 on its future consolidated financial statements and related disclosures. In December 2023 the FASB issued Accounting Standards Update 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . ASU 2023-09 is intended to enhance the transparency and decision usefulness of income tax disclosures. ASU 2023-09 addresses investor requests for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information. Early adoption is permitted. A public entity should apply ASU 2023-09 prospectively to all annual periods beginning after December 15, 2024. The Company is currently evaluating the impact of ASU 2023-09 on its future consolidated financial statements and related disclosures . |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2023 | |
Revenue | |
Revenue | Note 3. Revenue We design, manufacture and service ion implantation and other processing equipment used in the fabrication of semiconductor chips and sell our products to leading semiconductor chip manufacturers worldwide. We offer a complete line of high energy, high current and medium current implanters for all application requirements. In addition, we provide extensive aftermarket lifecycle products and services, including used tools, spare parts, equipment upgrades, maintenance service and customer training. Our revenue recognition policies are set forth in Section (i) of Note 2, Summary of Significant Accounting Policies. (a) Alternative Operational Revenue Categories used by Management To reflect the organization of our business operations, management reviews revenue in two categories: revenue from sales of new systems and revenue arising from the sale of used systems, parts and labor to customers who own systems, which we refer to as “CS&I” or “aftermarket.” Below are the revenues by categories used by management for the periods covered in this report: Year ended December 31, 2023 2022 2021 (in thousands) Systems $ 883,604 $ 692,061 $ 454,598 Aftermarket 247,000 227,937 207,830 Total Revenue $ 1,130,604 $ 919,998 $ 662,428 (b) Economic Factors Affecting our Revenue: Geographic Breakdown of Revenue Global economic conditions have a direct impact on our revenue. We are substantially dependent on sales of our products and services to customers outside of the United States. Adverse economic conditions, political instability, potential adverse tax consequences, regulatory changes and volatility in exchange rates pose a risk that our clients may reduce, postpone or cancel spending for our products and services, which would impact our revenue. Revenue by geographic markets is determined based upon the location to which our products are shipped and where our services are performed. Revenue in our principal geographic markets is as follows: Year ended December 31, 2023 2022 2021 (in thousands) North America $ 174,810 $ 143,701 $ 48,715 Asia Pacific 811,308 673,752 516,105 Europe 144,486 102,545 97,608 Total Revenue $ 1,130,604 $ 919,998 $ 662,428 (c) Recognition of Deferred Revenue from Contract Liabilities Contract liabilities are as follows: Year ended December 31, 2023 2022 2021 (in thousands) Balance, beginning of the period $ 154,777 $ 68,436 $ 23,058 Deferral of revenue 185,688 146,674 66,349 Recognition of deferred revenue (129,580) (60,333) (20,971) Balance, end of the period $ 210,885 $ 154,777 $ 68,436 Contract liabilities are reflected as deferred revenue on the consolidated balance sheet. Contract liabilities relate to payments received or amounts invoiced in advance of completion of performance obligations under a contract. Contract liabilities are recognized as revenue upon the fulfillment of performance obligations. As of December 31, 2023, we had deferred revenue of $210.9 million. This represents the portion of the transaction price for contracts with customers allocated to the performance obligations that remain unsatisfied or partially unsatisfied. Short-term deferred revenue of The majority of our system transactions have payment terms that are 90% due upon shipment of the tool and 10% due upon installation. Aftermarket transaction payment terms are such that payment is due either within 30 or 60 days of service provided or delivery of parts. |
Cash, cash equivalents and rest
Cash, cash equivalents and restricted cash | 12 Months Ended |
Dec. 31, 2023 | |
Cash, cash equivalents and restricted cash | |
Cash, cash equivalents and restricted cash | Note 4. Cash, cash equivalents and restricted cash December 31, December 31, 2023 2022 (in thousands) Cash and cash equivalents $ 167,297 $ 185,595 Long-term restricted cash 6,654 752 Total cash, cash equivalents and restricted cash $ 173,951 $ 186,347 As of December 31, 2023, we had $6.7 million in restricted cash which relates to a $5.9 million cash collateral relating to our lease for our headquarters in Beverly, Massachusetts, a $0.7 million letter of credit relating to workers’ compensation insurance and a $0.1 million deposit relating to customs activity. |
Accounts Receivable and Allowan
Accounts Receivable and Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2023 | |
Receivables and Allowances for Credit Losses | |
Receivables and Allowances for Credit Losses | Note 5. Accounts Receivable and Allowance 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 represents an estimate of expected losses over the remaining contractual life of its 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 its 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, 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 its customers’ ability to pay. These factors may include the customer’s financial condition, past payment experience, and credit ratings from credit bureaus, as well as the value of the underlying collateral. Management performs detailed reviews of its 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 allowance, while amounts recovered on previously written-off accounts increase the allowance. Changes to the allowance 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 twelve months ended December 31, 2023 and 2022, respectively: Year ended December 31, 2023 2022 (in thousands) Balance, beginning of period $ — $ — Provision for credit losses 1,117 — Charge-offs (657) — Recoveries — — Balance, end of period $ 460 $ — The components of accounts receivable are as follows: December 31, 2023 2022 (in thousands) Trade receivables $ 218,424 $ 169,773 Allowance for doubtful accounts (460) — Trade receivables, net $ 217,964 $ 169,773 |
Inventories, net
Inventories, net | 12 Months Ended |
Dec. 31, 2023 | |
Inventories, net | |
Inventories, net | Note 6. Inventories, net The components of inventories are as follows: December 31, December 31, 2023 2022 (in thousands) Raw materials $ 231,200 $ 187,313 Work in process 45,373 35,069 Finished goods (completed systems) 29,909 20,024 Inventories, net $ 306,482 $ 242,406 When recorded, inventory reserves are intended to reduce the carrying value of inventories to their net realizable value. We establish inventory reserves when conditions exist that indicate inventory may be in excess of anticipated demand or is obsolete based upon assumptions about future demand for our products or market conditions. We regularly evaluate our ability to realize the value of inventories based on a combination of factors including the following: forecasted sales and the size and utilization of our installed base, During the years ended December 31, 2023, 2022 and 2021, we recorded charges to cost of sales of $5.2 million, $4.6 million and $3.8 million, respectively, to adjust inventories to their lower of cost or net realizable value. We have inventory on consignment at customer locations at December 31, 2023 and 2022, of $6.5 million and $6.4 million, respectively. |
Property, Plant and Equipment,
Property, Plant and Equipment, net | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment, net. | |
Property, Plant and Equipment, net | Note 7. Property, Plant and Equipment, net The components of property, plant and equipment are as follows: December 31, 2023 2022 (in thousands) Land and buildings $ 21,802 $ 18,001 Machinery and equipment 41,547 34,728 Construction in process 17,055 10,189 Total cost 80,404 62,918 Accumulated depreciation (26,433) (23,254) Property, plant and equipment, net $ 53,971 $ 39,664 Depreciation expense was $6.2 million, $5.1 million and $4.2 million for the years ended December 31, 2023, 2022 and 2021, respectively. |
Assets Manufactured for Interna
Assets Manufactured for Internal Use, net | 12 Months Ended |
Dec. 31, 2023 | |
Assets Manufactured for Internal Use, net | |
Assets Manufactured for Internal Use, net | Note 8. Assets Manufactured for Internal Use, net Assets manufactured for internal use, included in other assets, are depreciated using the straight-line method over their 10 year estimated useful life. Their components are as follows: December 31, 2023 2022 (in thousands) Internal use assets $ 76,273 $ 61,603 Construction in process 236 2,629 Total cost 76,509 64,232 Accumulated depreciation (39,588) (33,992) Assets manufactured for internal use, net $ 36,921 $ 30,240 These products are used for research and development, training, and customer demonstration purposes. Depreciation expense was $5.6 million, $5.2 million and $5.3 million for the years ended December 31, 2023, 2022 and 2021, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases | |
Leases | Note 9. Leases We have operating leases for manufacturing, office space, warehouse space, computer and office equipment and vehicles used in our business operations. We have a finance lease in relation to the 2015 sale-leaseback of our corporate headquarters in Beverly, Massachusetts. We review all agreements to determine if the agreement contains a lease component. An agreement contains a lease component if it provides the use of a specific physical space or a specific physical item. We recognize operating lease obligations under Accounting Standards Codification - Leases (Topic 842). The guidance in Topic 842 requires recognition of lease assets and related liabilities on a discounted basis using the explicit or implicit discount rate stated within the agreement. We recognize a corresponding right-of-use asset, which is initially determined based upon the net present value of the associated liability and is adjusted for deferred costs and possible impairment, if any. For those lease agreements that do not indicate the applicable discount rate, we use our incremental borrowing rate. The value of the right-of-use asset is initially determined based on the net present value of the associated liability, and is adjusted for deferred costs and possible impairments, if any. We have made the following policy elections: (i) operating leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet; (ii) we recognize lease expense for operating leases on a straight-line basis over the lease term; and (iii) we account for lease components and non-lease components that are fixed payments as one component. Some of our operating leases include one or more options to renew, with renewal terms that can extend the respective lease term 1 to 3 years. The exercise of lease renewal options is at our sole discretion. For lease extensions that are reasonably certain to occur, we have included the renewal periods in our calculation of the net present value of the lease obligation and related right-of-use asset. Certain leases also include options to purchase the leased property. The depreciable life of certain assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The amounts of operating and finance lease right-of-use assets and related lease obligations recorded within our consolidated balance sheets are as follows: December 31, December 31, Leases Classification 2023 2022 Assets (in thousands) Operating leases Operating lease assets $ 30,716 $ 12,146 Finance lease Finance lease assets* 16,632 17,942 Total leased assets $ 47,348 $ 30,088 Liabilities Current Operating Other current liabilities $ 4,978 $ 5,367 Finance Current portion of finance lease obligation 1,511 1,229 Non-current Operating Other long-term liabilities 25,724 6,931 Finance Finance lease obligation 43,674 45,185 Total lease liabilities $ 75,887 $ 58,712 *Finance lease assets are recorded net of accumulated depreciation of $46.4 million and include $0.6 million of prepaid financing costs as of December 31, 2023. Finance lease assets are recorded net of accumulated depreciation of $45.9 million and include $0.6 million of prepaid financing costs as of December 31, 2022. All of our office locations support selling and servicing functions. We also have a manufacturing facility in South Korea. Lease expense, depreciation expense relating to finance leased assets and interest expense relating to our finance lease obligation recognized within our consolidated statement of operations for the twelve-month periods ended December 31, 2023, 2022 and 2021 are as follows: Year ended December 31, Lease cost Classification 2023 2022 2021 Operating lease cost (in thousands) Product / services* Cost of revenue $ 7,297 $ 5,427 $ 2,978 Research and development Operating expenses 587 322 430 Sales and marketing* Operating expenses 1,674 1,526 1,605 General and administrative* Operating expenses 1,111 1,065 996 Total operating lease cost $ 10,669 $ 8,340 $ 6,009 Finance lease cost Depreciation of leased assets Cost of revenue, Research and development, Sales and marketing and General and administrative $ 1,310 $ 1,296 $ 1,306 Interest on lease liabilities Interest expense 4,874 4,992 5,086 Total finance lease cost $ 6,184 $ 6,288 $ 6,392 Total lease cost $ 16,853 $ 14,628 $ 12,401 * Product / services, sales and marketing and general and administrative expense also includes short-term lease and variable lease costs of approximately $2.1 million, $1.8 million and $1.9 million for the years ended December 31, 2023, 2022 2021, respectively. Our corporate headquarters, shown below under finance leases, has an original lease term of 22 years. All other locations are treated as operating leases, with lease terms ranging from 1 to 16 years. The tables below reflect the minimum cash outflow regarding our current lease obligations as well as the weighted-average remaining lease term and weighted-average discount rates used in our calculation of our lease obligations and right-of-use assets: Finance Operating Total Maturity of Lease Liabilities Leases Leases Leases (in thousands) 2024 $ 6,252 $ 6,529 $ 12,781 2025 5,930 4,970 10,900 2026 6,008 3,613 9,621 2027 6,128 2,530 8,658 2028 6,251 1,926 8,177 Thereafter 55,336 23,205 78,541 Total lease payments $ 85,905 $ 42,773 $ 128,678 Less interest portion* (40,720) (12,071) (52,791) Finance lease and operating lease obligations $ 45,185 $ 30,702 $ 75,887 * Finance lease interest calculated using the implied interest rate; operating lease interest calculated using estimated corporate borrowing rate. The table above does not include options to renew lease terms that are not reasonably certain of being exercised, nor leases signed but not yet commenced as of December 31, 2023. December 31, Lease term and discount rate 2023 Weighted-average remaining lease term (years): Operating leases 11.5 Finance leases 13.1 Weighted-average discount rate: Operating leases 5.5% Finance leases 10.5% Our cash outflows from our operating leases include rent expense and other charges associated with these leases. These cash flows are included within the operating section of our statement of cash flows. Our cash flows from our finance lease include an interest and payment of principal component. The table below shows our cash outflows, by lease type and related section of our statement of cash flows, as well as the non-cash amount capitalized on our balance sheet in relation to our operating lease right-of-use assets: Year ended December 31, Cash paid for amounts included in the measurement of lease liabilities 2023 2022 2021 (in thousands) Operating cash outflows from operating leases $ 10,669 $ 8,340 $ 6,009 Operating cash outflows from finance leases 4,874 4,992 5,086 Financing cash outflows from finance leases 1,240 987 763 Operating lease assets obtained in exchange for operating lease liabilities 26,890 6,173 8,670 Finance lease assets obtained in exchange for new finance lease liabilities — — — |
Product Warranty
Product Warranty | 12 Months Ended |
Dec. 31, 2023 | |
Product Warranty | |
Product Warranty | Note 10. Product Warranty We generally offer a one-year warranty for all of our systems, the terms and conditions of which vary depending upon the product sold. For all systems sold, we accrue a liability for the estimated cost of standard warranty at the time of system shipment and defer the portion of systems revenue attributable to the fair value of non-standard warranty. Costs for non-standard warranty are expensed as incurred. Factors that affect our warranty liability include the number of installed units, historical and anticipated product failure rates, material usage and service labor costs. We periodically assess the adequacy of our recorded liability and adjust the amount as necessary. The changes in our product warranty liability are as follows: Year ended December 31, 2023 2022 2021 (in thousands) Balance at January 1 (beginning of year) $ 10,487 $ 6,924 $ 4,612 Warranties issued during the period 12,893 10,597 7,808 Settlements made during the period (10,230) (6,798) (4,282) Changes in estimate of liability for pre-existing warranties during the period 3,607 (236) (1,214) Balance at December 31 (end of period) $ 16,757 $ 10,487 $ 6,924 Amount classified as current $ 14,098 $ 8,299 $ 6,424 Amount classified as long-term (within other long-term liabilities) 2,659 2,188 500 Total warranty liability $ 16,757 $ 10,487 $ 6,924 |
Financing Arrangements
Financing Arrangements | 12 Months Ended |
Dec. 31, 2023 | |
Financing Arrangements | |
Financing Arrangements | Note 11. Financing Arrangements On January 30, 2015, we sold our corporate headquarters facility for the sale price of $48.9 million. As part of the sale, we also entered into a 22-year lease agreement with the buyer. The sale leaseback is accounted for as a financing arrangement for financial reporting purposes and, as such, we recorded a financing obligation of $45.2 million as of December 31, 2023, $1.5 million of which is classified within current liabilities. The associated lease payments include both an interest component and payment of principal, with the underlying liability being extinguished at the end of the original lease term. As of December 31, 2023, we had a security deposit of $5.9 million related to this lease. On April 5, 2023, we terminated the Senior Secured Credit Facilities Credit Agreement, as amended (the “Credit Agreement”), with Silicon Valley Bank that we entered into on July 31, 2020. The Credit Agreement provided for a revolving credit facility covering borrowings and letters of credit in an aggregate principal amount not to exceed $40.0 million. Our obligations under the Credit Agreement were 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. Upon termination, these liens and all other obligations under the credit agreement, were released. A letter of credit issued by Silicon Valley Bank, a division of First Citizens Bank & Trust Company (successor by purchase to the Federal Deposit Insurance Corporation as Receiver for Silicon Valley Bridge Bank, N.A.) as successor to Silicon Valley Bank in the amount of $5.9 million securing our lease on our corporate headquarters was terminated on December 28, 2023. The underlying cash collateral held at Silicon Valley Bank was released on December 28, 2023, in conjunction with the letter of credit termination. A replacement, cash collateralized letter of credit was issued on December 14, 2023 with UBS Bank USA and is classified as long-term restricted cash on our balance sheet at December 31, 2023. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Employee Benefit Plans | |
Employee Benefit Plans | Note 12. Employee Benefit Plans (a) Defined Contribution Plan We maintain the Axcelis Long-Term Investment Plan, a defined contribution plan. Eligible employees may contribute up to 35% of their compensation on a before-tax basis subject to Internal Revenue Service (“IRS”) limitations. Highly compensated employees may contribute up to 16% of their compensation on a before-tax basis subject to IRS limitations. In 2023, 2022 and 2021, we provided an employer match of 50% of employees’ pre-tax contributions on the first 6% of eligible compensation. Total related matching contribution expense was $3.4 million, $2.7 million and $2.2 million, for 2023, 2022 and 2021, respectively. (b) Other Compensation Plans We operate in foreign jurisdictions that require lump sum benefits, payable based on statutory regulations, for voluntary or involuntary termination. Where required, an annual actuarial valuation of the benefit plans is obtained. We have recorded an unfunded liability of $3.2 million and $3.5 million at December 31, 2023 and 2022, respectively, for costs associated with these compensation plans in foreign jurisdictions. The following table presents the classification of these liabilities in the Consolidated Balance Sheets: Year ended December 31, 2023 2022 (in thousands) Long-term: Other long-term liabilities 3,160 3,516 Total liabilities $ 3,160 $ 3,516 The expense recorded in connection with these plans was $1.7 million, $1.5 million and $1.5 million during the years ended December 31, 2023, 2022 and 2021, respectively. |
Stock Award Plans and Stock Bas
Stock Award Plans and Stock Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Stock Award Plans and Stock Based Compensation | |
Stock Award Plans and Stock Based Compensation | Note 13. Stock Award Plans and Stock-Based Compensation (a) Equity Incentive Plans We maintain the Axcelis Technologies, Inc. 2012 Equity Incentive Plan (the “2012 Equity Plan” or the “Plan”), which became effective on May 2, 2012. The 2012 Equity Plan, as amended, reserves 9.5 million shares of common stock, $0.001 par value, for grant and permits the issuance of options, stock appreciation rights, restricted stock, restricted stock units, stock equivalents and awards of shares of common stock that are not subject to restrictions or forfeiture to selected employees, directors, and consultants of the Company. The total number of shares reserved for issuance under the Plan is the sum of The term of stock options granted under the Plan is specified in the award agreements. Unless a lesser term is otherwise specified by the Compensation Committee of the Company’s Board of Directors, option awards under the 2012 Equity Plan will expire seven years from the date of grant. Under the terms of the Plan, the exercise price of a stock option may not be less than the fair market value of a share of the Company’s common stock on the date of grant. Under the 2012 Equity Plan, fair market value is defined as the last reported sale price of a share of the Company’s common stock on a national securities exchange as of any applicable date, as long as the Company’s shares are traded on such exchange. Stock options granted to employees generally vest over a period of four years, while stock options granted to non-employee members of the Company’s Board of Directors generally vest over a period of six months and, once vested, are not affected by the director’s termination of service to the Company. In limited circumstances, the Company may grant stock option awards with market-based vesting conditions, such as the Company’s common stock price, or other performance conditions. Termination of service by an employee will cause options to cease vesting as of the date of termination, and in most cases, employees will have 90 days after termination to exercise options that were vested as of the termination of employment. In general, retiring employees will have one year after termination of employment to exercise vested options. The Company settles stock option exercises with newly issued common shares. Restricted stock units granted to employees during 2023 had both service-based vesting provisions and performance-based vesting provisions. Restricted stock units granted to employees generally vest over a service period of four years, while restricted stock units granted to non-employee members of the Company’s Board of Directors in 2023 vest over a service period of one year. We have granted restricted stock units to executive officers and other senior employees with performance vesting conditions, which may be subject to further service-based vesting terms. Unvested restricted stock unit awards expire upon termination of service to the Company. We settle restricted stock units upon vesting with newly issued common shares. No restricted stock was granted during the three year period ended December 31, 2023. As of December 31, 2023, there were 0.8 million shares available for grant under the 2012 Equity Plan. As of December 31, 2023, there were three thousand options outstanding and 0.5 million unvested restricted stock units outstanding under the 2012 Stock Plan. (b) Employee Stock Purchase Plan The 2020 Employee Stock Purchase Plan (the “2020 ESPP”) provides our employees an opportunity to purchase common stock of the Company at less than market prices. Purchases are made through payroll deductions of up to 10% of the employee’s salary as elected by the participant, subject to certain caps set forth in the 2020 ESPP. Employees may purchase the Company’s common stock at 85% of its market price on the day the stock is purchased. The 2020 ESPP is considered compensatory and as such, compensation expense has been recognized based on the benefit of the discounted stock price, amortized to compensation expense over each offering period of six months. Compensation expense relating to the 2020 ESPP was approximately $0.4 million, $0.3 million, and $0.2 million for the years ended December 31, 2023, 2022 and 2021, respectively. As of December 31, 2023, there were approximately 0.9 million shares reserved for issuance and available for purchase under the 2020 ESPP, with 9,965 shares purchased on that date to be issued pending settlement. Less than 0.1 million shares were purchased under the 2020 ESPP for each of the years ended December 31, 2023, 2022 and 2021. (c) Valuation of Stock Options and Restricted Stock Units For the purpose of valuing stock options with service conditions, we use the Black-Scholes option pricing model to calculate the grant-date fair value of an award. 2021 Weighted-average expected volatility 53.07% Weighted-average expected term 4.71 years Risk-free interest rate 1.22% Expected dividend yield 0.00% There were no stock option awards granted in 2023 and 2022. The fair value of the Company’s restricted stock units is calculated based upon the fair market value of the Company’s stock at the date of grant. (d) Summary of Stock-based Compensation Expense We use the straight-line attribution method to recognize expense for stock-based awards such that the expense associated with awards is evenly recognized throughout the period. The amount of stock-based compensation recognized is based on the value of the portion of the awards that are ultimately expected to vest. We estimate forfeitures at the time of grant and revise them, if necessary, in subsequent periods, if actual forfeitures differ from those estimates. The term “forfeitures” is distinct from “cancellations” or “expirations” and represents only the unvested portion of the surrendered stock-based award. Based on a historical analysis, a forfeiture rate of 5% per year was applied to stock-based awards, including executive officer awards, for the years ended December 31, 2023, 2022 and 2021. For the years ended December 31, 2023, 2022 and 2021, we recognized stock-based compensation expense of $18.3 million, $13.4 million and $12.1 million, respectively. We present the expenses related to stock-based compensation in the same expense line items as cash compensation paid to our employees. For the years ended December 31, 2023, 2022 and 2021, we used restricted stock units in our annual equity compensation program. The benefit of tax deductions in excess of recognized compensation cost is reported in the consolidated statements of cash flows as part of cash flows from operating activities. Axcelis had tax deductions in excess of recognized compensation cost of $10.2 million for the year ended December 31, 2023 which resulted in a tax benefit of $2.2 million. (e) Stock Option Awards The following table summarizes the stock option activity for the year ended December 31, 2023: Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Options Price Term Value (in thousands) (years) (in thousands) Outstanding at December 31, 2022 5 $ 43.33 Granted — — Exercised (2) 13.75 Canceled — — Expired — — Outstanding at December 31, 2023 3 $ 61.81 4.9 $ 204 Exercisable at December 31, 2023 2 $ 61.81 4.9 $ 102 Options Vested at December 31, 2023 2 $ 61.81 4.9 $ 102 The total intrinsic value, which is defined as the difference between the market price at exercise and the price paid by the employee to exercise the options, for options exercised during the years ended December 31, 2023, 2022 and 2021 was $0.2 million, $5.4 million and $12.8 million, respectively. For both the years ended December 31, 2023 and 2022, 750 stock options vested, respectively. No stock options vested for the year ended December 31, 2021. As of December 31, 2023, there was less than $0.1 million of unrecognized compensation cost related to non-vested stock options granted under the 2012 Equity Incentive Plan. (f) Restricted Stock Units and Restricted Stock Restricted stock units represent the Company’s unfunded and unsecured promise to issue shares of the common stock at a future date, subject to the terms of the Award Agreement issued under the 2012 Equity Incentive Plan. Restricted stock unit awards granted in 2023 included time vested share awards and awards with performance vesting conditions. Restricted stock awards are issued shares of common stock that are subject to forfeiture on terms described in the Award Agreement, and may be granted under the 2012 Equity Incentive Plan. No restricted stock awards were granted, or vested, during the years ended December 31, 2023, 2022 and 2021. The fair value of a restricted stock unit and restricted stock award is charged to expense ratably over the applicable service period. The purpose of these awards is to assist in attracting and retaining highly competent employees and directors and to act as an incentive in motivating selected employees and directors to achieve long-term corporate objectives. Changes in the Company’s non-vested restricted stock units for the year ended December 31, 2023 is as follows: Weighted-Average Grant Date Fair Shares/units Value per Share (in thousands) Outstanding at December 31, 2022 725 $ 39.23 Granted 220 125.11 Vested (397) 131.71 Forfeited (10) 51.94 Outstanding at December 31, 2023 538 $ 77.22 The weighted average grant-date fair value of restricted stock units granted for the years ended December 31, 2023, 2022 and 2021 was $125.11, $55.47 and $38.54, respectively. Most restricted stock units provide for net share settlement to cover the employee’s personal income tax withholding obligations on vesting of the employee’s restricted stock units. Vesting activity above reflects shares vested before net share settlement. As of December 31, 2023, there was $31.7 million of total forfeiture-adjusted unrecognized compensation cost related to non-vested restricted stock units granted under the 2012 Equity Incentive Plan. That cost is expected to be recognized over a weighted-average period of 2.7 years. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity | |
Stockholders' Equity | Note 14. Stockholders’ Equity We may issue up to 75 million shares of common stock without additional shareholder approval. At December 31, 2023 and 2022, there were 32.7 million and 32.8 million outstanding shares of common stock, respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Measurements | |
Fair Value Measurements | Note 15. Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. (a) Fair Value Hierarchy The accounting guidance for fair value measurement requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is as follows: Level 1 Level 2 Level 3 (b) Assets and Liabilities Measured at Fair Value Our money market funds and short-term investments with maturities of 90 days or less at time of purchase are included in cash and cash equivalents in the consolidated balance sheets. Short-term investments with maturities greater than 90 days but not greater than 365 days are included in short-term investments in the consolidated balance sheets. The following table sets forth Company’s assets which are measured at fair value by level within the fair value hierarchy. December 31, 2023 Fair Value Measurements Level 1 Level 2 Level 3 Total (in thousands) Assets Cash equivalents and other short-term investments: Cash equivalents (money market funds, U.S. Government Securities and Agency Investments) $ 118,278 $ — $ — $ 118,278 Short-term investments (U.S. Government Securities and Agency Investments) 339,240 — — 339,240 Total $ 457,518 $ — $ — $ 457,518 December 31, 2022 Fair Value Measurements Level 1 Level 2 Level 3 Total (in thousands) Assets Cash equivalents and other short-term investments: Cash equivalents (money market funds, U.S. Government Securities and Agency Investments) $ 111,771 $ 25,000 $ — $ 136,771 Short-term investments (U.S. Government Securities and Agency Investments) 245,247 — — 245,247 Total $ 357,018 $ 25,000 $ — $ 382,018 (c) Other Financial Instruments The carrying amounts reflected in the consolidated balance sheets for accounts receivable, prepaid expenses and other current and non-current assets, restricted cash, accounts payable and accrued expenses approximate fair value due to their short-term maturities. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 16. Commitments and Contingencies In addition to the finance and operating leases discussed in Note 9, we have purchase commitments and other contingency considerations. (a) Purchase Commitments We have contracts and purchase orders for inventory and other expenditures of $304.1 million at December 31, 2023, approximately $293.8 million are expected to occur in 2024. (b) Litigation We are not presently a party to any litigation that we believe might have a material adverse effect on our business operations. We are, from time to time, a party to litigation that arises in the normal course of our business operations. (c) Indemnifications Our system sales agreements typically include provisions under which we agree to take certain actions, provide certain remedies and defend our customers against third-party claims of intellectual property infringement under specified conditions and to indemnify customers against any damage and costs awarded in connection with such claims. We have not incurred any material costs as a result of such indemnifications and have not accrued any liabilities related to such obligations in the accompanying consolidated financial statements. |
Business Segment and Geographic
Business Segment and Geographic Region Information | 12 Months Ended |
Dec. 31, 2023 | |
Business Segment and Geographic Region Information | |
Business Segment and Geographic Region Information | Note 17. Business Segment and Geographic Region Information We operate in one business segment, which is the manufacture of capital equipment for the semiconductor chip manufacturing industry. The principal market for semiconductor capital equipment is semiconductor chip manufacturers. Substantially all sales are made directly by us to our customers located in the United States, Europe and Asia Pacific. Our ion implantation systems product line includes high current, medium current and high energy implanters. Other legacy processing products include curing and thermal processing systems. In addition to new equipment, we provide post-sales equipment service and support, including spare parts, equipment upgrades, used equipment, maintenance services and customer training. Revenue by product lines is as follows: Year ended December 31, 2023 2022 2021 (in thousands) Ion implantation systems and services $ 1,111,278 $ 898,132 $ 645,504 Other systems and services 19,326 21,866 16,924 Total revenue $ 1,130,604 $ 919,998 $ 662,428 Revenue and long-lived assets by geographic region, based on the physical location of the operation recording the sale or the asset, are as follows: Long-Lived Revenue Assets (in thousands) 2023 United States $ 749,288 $ 86,482 Europe 45,583 382 Asia Pacific 335,733 4,040 $ 1,130,604 $ 90,904 2022 United States $ 634,081 $ 66,227 Europe 38,963 212 Asia Pacific 246,954 3,464 $ 919,998 $ 69,903 2021 United States $ 519,408 $ 63,590 Europe 36,622 191 Asia Pacific 106,398 3,194 $ 662,428 $ 66,975 Long-lived assets consist of property, plant and equipment, net, and assets manufactured for internal use, net. Operations in Asia Pacific consist of manufacturing, sales and service organizations. Operations in Europe consist of sales and service organizations. International revenue, which includes export sales from U.S. manufacturing facilities to foreign customers and sales by foreign subsidiaries and branches, was $950.4 million (84.1% of total revenue), $776.3 million (84.4% of total revenue) and $613.5 million (92.6% of total revenue) in 2023, 2022 and 2021, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes | |
Income Taxes | Note 18. Income Taxes Income before income taxes is as follows: Year ended December 31, 2023 2022 2021 (in thousands) United States $ 270,842 $ 198,028 $ 116,380 Foreign 7,757 6,857 4,048 Income before income taxes $ 278,599 $ 204,885 $ 120,428 Provision for income taxes is as follows: Year ended December 31, 2023 2022 2021 (in thousands) Current: United States Federal $ 46,871 $ 8,430 $ — State 1,985 1,716 82 Foreign 3,498 3,124 1,439 Total current 52,354 13,270 1,521 Deferred: Federal (18,526) 9,097 20,521 State (440) (102) 406 Foreign (1,052) (459) (670) Total deferred (20,018) 8,536 20,257 Income tax provision $ 32,336 $ 21,806 $ 21,778 Reconciliation of income taxes at the United States Federal statutory rate to the effective income tax rate of 11.6% is as follows: Year ended December 31, 2023 2022 2021 (in thousands) Income taxes at the United States statutory rate $ 58,506 $ 43,026 $ 25,290 State income taxes 1,033 1,075 387 Effect of change in valuation allowance 1,978 680 (1,443) Foreign income tax rate differentials 329 289 152 Stock-based compensation (6,718) (3,818) (3,658) Internal revenue code section 162(m) limitation 4,488 2,692 1,481 Credit expirations 784 1,181 2,342 Rate change 44 94 159 Credit generation (6,900) (4,764) (3,096) Discrete items, net 2,161 206 72 GILTI inclusion 45 69 301 Foreign-derived intangible income (24,052) (20,526) — Other, net 638 1,602 (209) Income tax provision $ 32,336 $ 21,806 $ 21,778 Significant components of long-term deferred income taxes are as follows: Year ended December 31, 2023 2022 (in thousands) Deferred tax assets: State net operating loss carryforwards $ 96 $ 291 Foreign net operating loss carryforwards 182 276 Federal tax credit carryforwards 1,999 — State tax credit carryforwards 9,560 8,683 Property, plant and equipment 6,979 8,755 Operating lease liability 5,564 1,564 Accrued compensation 242 276 Inventories 804 1,613 Stock compensation 1,790 1,620 Warranty 3,108 1,993 Deferred revenue 6,389 4,501 Capitalized research and development costs 38,036 18,067 Gross deferred tax assets 74,749 47,639 Valuation allowance (10,963) (8,370) Net deferred tax assets 63,786 39,269 Deferred tax liabilities: Intangible assets — (176) Right-of-use asset (9,155) (5,400) Other (1,203) (1,992) Gross deferred tax liabilities (10,358) (7,568) Deferred taxes, net $ 53,428 $ 31,701 Changes in tax rates and tax laws are accounted for in the period of enactment. Our deferred tax assets and liabilities are measured at the enacted tax rate expected to apply when these temporary differences are expected to be realized or settled. At December 31, 2023, we had $53.4 million of net deferred tax assets worldwide relating to capitalized R&D costs and other temporary differences, which are available to reduce income taxes in future years. The increase in our deferred tax assets from the prior year was primarily due to a $20.0 million increase relating to capitalized R&D costs. At December 31, 2023, we maintained a $11.0 million valuation allowance in the U.S. against certain tax credits and state net operating losses due to the uncertainty of their realization based on long-term Company forecasts and the expiration dates on these attributes. This represents an increase of $2.6 million from the prior year. At December 31, 2023, we had state net operating loss carryforwards of $0.1 million. State net operating losses will expire between 2024 and 2034. At December 31, 2023, we have foreign net operating loss carryforwards of $0.2 million. The majority of our foreign net operating losses have an unlimited carryforward period. At December 31, 2023, we had research and development and other tax credit carryforwards of $15.2 million. These carry forwards are subject to an uncertain tax position reserve of $3.0 million. These credits can be used to reduce future federal and state income tax liabilities and expire principally between 2024 and 2035. A provision of the Tax Cuts and Jobs Act (“TCJA”) took effect in 2022, creating a significant change to our treatment of research and experimental expenditures. Historically, businesses had the option of deducting R&D expenses in the year incurred or capitalizing and amortizing the costs over five years. The TCJA provision eliminates this option and requires R&D expenses associated with research conducted in the U.S. to be capitalized and amortized over a five-year period. For expenses associated with research outside of the United States, R&D expenses are capitalized and amortized over a 15-year period. The Company has included the tax impact of capitalizing and amortizing these costs over the required periods in their tax provision for the year ended December 31, 2023. We consider the undistributed earnings of our foreign subsidiaries as of December 31, 2023 to be indefinitely reinvested and, accordingly, no U.S. income taxes have been provided thereon. As of December 31, 2023, the amount of cash associated with indefinitely reinvested foreign earnings was approximately $11.8 million. We have not, nor do we anticipate the need to, repatriate funds to the United States to satisfy domestic liquidity needs arising in the ordinary course of business, including liquidity needs associated with our domestic debt service requirements. We and our subsidiaries file income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. We and most foreign subsidiaries are subject to income tax examinations by tax authorities for all years dating back to 2009. Our policy is to recognize interest related to unrecognized tax benefits as interest expense and penalties as operating expenses. We believe that we have appropriate support for the income tax positions taken and to be taken on our tax returns and that our accruals for tax liabilities are adequate for all open years based on an assessment of many factors including past experience and interpretations of tax law applied to the facts of each matter. At December 31, 2023, we had unrecognized tax benefits related to uncertain tax positions of $11.9 million, $8.3 million of which is recorded as a long-term liability, and the remainder of which reduced the Company’s state deferred tax assets and the offsetting valuation allowance. We recognized $0.5 million in interest and penalty expenses for the year ended December 31, 2023 relating to these uncertain tax positions. These unrecognized tax benefits, if recognized, would reduce the effective tax rate and also reverse associated accrued interest and penalty expenses. A reconciliation of the beginning and ending balance of unrecognized tax benefits are as follows: Year ended December 31, 2023 2022 2021 (in thousands) Balance at beginning of year $ 10,443 $ 9,961 $ 10,044 Decrease in unrecognized tax benefits as a result of tax positions taken during a prior period (271) (122) (546) Decreases in unrecognized tax benefits related to settlements with tax authorities — (708) — Reductions to unrecognized tax benefits as a result of a lapse of the applicable statute of limitation — — (472) Increases in unrecognized tax benefits as a result of tax positions taken during the current period 1,754 1,312 935 Balance at end of year $ 11,926 $ 10,443 $ 9,961 Recorded as other long-term liability $ 8,344 $ 7,190 $ — Recorded as a decrease in deferred tax assets 3,582 3,253 9,961 Balance at end of year $ 11,926 $ 10,443 $ 9,961 |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2023 | |
Schedule II-Valuation and Qualifying Accounts | |
Schedule II-Valuation and Qualifying Accounts | Balance at Charged to Balance at Beginning of Costs and End of Period Expenses Deductions Period Year ended December 31, 2023 Allowance for doubtful accounts and returns $ — $ 1,117 $ 657 $ 460 Deferred tax valuation allowance 8,370 3,196 603 10,963 Year ended December 31, 2022 Allowance for doubtful accounts and returns $ — $ — $ — $ — Deferred tax valuation allowance 7,689 1,529 848 8,370 Year ended December 31, 2021 Allowance for doubtful accounts and returns $ — $ — $ — $ — Deferred tax valuation allowance 9,133 780 2,224 7,689 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies | |
Basis of Presentation | (a) Basis of Presentation The accompanying consolidated financial statements include the consolidated accounts of the Company and its wholly-owned, controlled subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Events occurring subsequent to December 31, 2023 have been evaluated for potential recognition or disclosure in the consolidated financial statements. |
Use of Estimates | (b) Use of Estimates The preparation of these consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. On an ongoing basis, we evaluate our estimates and judgments, including those related to revenue recognition, the realizable value of accounts receivable and inventories, warranty reserves, valuing stock-based compensation instruments and reserves relating to tax assets and liabilities. Actual amounts could differ from these estimates. Changes in estimates are recorded in the period in which they become known. |
Foreign Currency | (c) Foreign Currency The functional currency for substantially all operations outside the United States is the local currency. Financial statements for these operations are translated into United States dollars at year-end rates as to assets and liabilities and average exchange rates during the year as to revenue and expenses. The resulting translation adjustments are recorded in stockholders’ equity as an element of accumulated other comprehensive income (loss). Foreign currency transaction gains and losses are included in other income (expense) in the Consolidated Statements of Operations. For the years ended December 31, 2023, 2022, and 2021, we had foreign exchange losses of $0.5 million, $6.6 million, and $2.5 million, respectively. |
Cash, Cash Equivalents and Short-term Investments | (d) Cash, Cash Equivalents and Short-term Investments Cash and cash equivalents consist of cash on hand and highly liquid investments with original maturities of ninety days or less. Cash equivalents consist primarily of money market funds, U.S. Government and Agency Securities and deposit accounts. Cash equivalents are carried on the balance sheet at fair market value. Short-term investments are h ighly liquid investments with original maturities of greater than 90 days but less than one year from date of purchase and are carried on the balance sheet at amortized cost. Our short-term investments consist primarily of U.S. Government and Agency securities and are classified as held-to-maturity based on our positive intent and ability to hold the securities to maturity. Income related to these securities is recorded in interest income in the Consolidated Statements of Operations |
Inventories | (e) Inventories Inventories are carried at the lower of cost or net realizable value, determined using the first-in, first-out (“FIFO”) method. We periodically review our inventories and make provisions as necessary for estimated obsolescence or damaged goods to ensure values approximate lower of cost or net realizable value. The amount of such markdowns is equal to the difference between cost of inventory and the estimated market value based upon assumptions about future demands, selling prices, and market conditions. We record a provision for estimated excess inventory. The provision is determined using management’s assumptions of materials usage, based on estimates of demand, market conditions, and the size and utilization of our installed base. If actual market conditions become less favorable than those projected by management, additional inventory write-downs may be required. |
Property, Plant and Equipment and Leased Assets | (f) Property, Plant and Equipment and Leased Assets Property, plant and equipment are stated at cost, less accumulated depreciation and amortization. On January 30, 2015, we sold our corporate headquarters facility. As part of this sale, we also entered into a 22-year lease agreement. We accounted for the sale leaseback transaction as a financing arrangement for financial reporting purposes. We retained the historical costs of the property and the related accumulated depreciation on our financial books within property, plant and equipment and will continue to depreciate the property for financial reporting purposes over the lesser of its remaining useful life or its initial lease term of 22 years Depreciation and amortization are recorded using the straight-line method over the estimated useful lives of the related assets as follows: Asset Classification Estimated Useful Life Land, buildings and equipment (under lease) Lesser of the lease term or estimated useful life of the asset Machinery and equipment 3 to 10 years Repairs and maintenance costs are expensed as incurred. Expenditures greater than $2.5 thousand for renewals and betterments are capitalized and depreciated over their useful lives. |
Impairment of Long-Lived Assets | (g) Impairment of Long-Lived Assets We record impairment losses on long-lived assets when events and circumstances indicate that these assets might not be recoverable. Recoverability is assessed by a comparison of the assets’ carrying amount to their expected future undiscounted net cash flows. If such assets are considered to be impaired, the impairment is measured based on the amount by which the carrying value exceeds its fair value. We did not have any indicators of impairment during the period ending December 31, 2023. We did not record an impairment charge in the years ended December 31, 2023, 2022, or 2021. Actual performance could be materially different from our current forecasts, which could impact estimates of undiscounted cash flows and may result in the impairment of the carrying amount of the long-lived assets in the future. This could be caused by strategic decisions made in response to economic and competitive conditions, the impact of the economic environment on our customer base, or a material adverse change in our relationships with significant customers. |
Concentration of Risk and Off-Balance Sheet Risk | (h) Concentration of Risk and Off-Balance Sheet Risk Financial instruments that potentially subject us to concentrations of credit risk are principally cash equivalents, short-term investments and accounts receivable. Our cash equivalents and short-term investments are principally maintained in investment grade money-market funds, U.S. Government and Agency Securities and deposit accounts. We have no significant off-balance-sheet risk such as currency exchange contracts, option contracts or other hedging arrangements. Our exposure to market risk for changes in interest rates relates primarily to cash equivalents and short-term investments. The primary objective of our investment activities is to preserve principal without significantly increasing risk. This is accomplished by investing in marketable investment grade securities. We do not use derivative financial instruments to manage our investment portfolio and do not expect operating results or cash flows to be affected to any significant degree by any change in market interest rates. We perform ongoing credit evaluations of our customers’ financial condition and generally require no collateral to secure accounts receivable. For selected overseas sales, we require customers to obtain letters of credit before product is shipped. We maintain an allowance for doubtful accounts based on our assessment of the collectability of accounts receivable. We review the allowance for doubtful accounts quarterly. We do not have any off-balance sheet credit exposure related to our customers. Our customers consist of semiconductor chip manufacturers located throughout the world and net sales to our ten largest customers accounted for 51.7%, 59.4% and 69.5% of revenue in 2023, 2022 and 2021, respectively. For the year ended December 31, 2023, we had no customers representing 10% or greater of total revenue. For the year ended December 31, 2022, we had two customers representing 13.1% and 11.5% of total revenue, respectively. For the year ended December 31, 2021, we had two customers representing 17.8% and 15.4% of total revenue, respectively. As of December 31, 2023, we had one customer account for 12.2% of consolidated accounts receivable. As of December 31, 2022, we had two customers account for 19.4% and 11.5% of consolidated accounts receivable, respectively. Some of the components and sub-assemblies included in our products are obtained either from a sole source or a limited group of suppliers. Disruption to our supply source, resulting either from economic conditions or other factors, could affect our ability to deliver products to our customers. |
Revenue Recognition | (i) Revenue Recognition We recognize revenue in accordance with Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers 1) Identify the contract with the customer A contract with a customer exists when (i) we enter into an enforceable contract with a customer that defines each party’s rights regarding the goods or services to be transferred and identifies the related payment terms, (ii) the contract has commercial substance, and (iii) we determine that collection of substantially all consideration for goods and services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. 2) Identify the performance obligations in the contract Performance obligations promised in a contract are identified based on the goods and services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the good or service either on its own or together with other available resources, and are distinct in the context of the contract, whereby the transfer of the good or service is separately identifiable from other promises in the contract. To the extent a contract includes multiple promised goods and services, we must apply judgment to determine whether promised goods and services are capable of being distinct and distinct in the context of the contract. If these criteria are not met, the promised goods and services are accounted for as a combined performance obligation. Systems sales consist of multiple performance obligations, including the system itself and obligations that are not delivered simultaneously with the system. These undelivered obligations might include a combination of installation services, extended warranty and support and spare parts, all of which are generally covered by a single sales price. The Aftermarket business includes both products and services type arrangements. Performance obligations in these contracts consist of used tools, spare parts, equipment upgrades, maintenance services and customer training. Customers who purchase new systems are provided an assurance-type warranty for one year after acceptance of the tool. For aftermarket transactions, we provide customers an assurance-type warranty for 90 days. Customers can choose to purchase extended warranty terms with enhanced support similar to a service-type warranty ranging from one . In accordance with ASC 606, assurance-type warranties are not considered a performance obligation, whereas service-type warranties are. 3) Determine the transaction price The transaction price is determined based on the consideration to which we will be entitled in exchange for transferring goods and services to the customer. To the extent the transaction price includes variable consideration, we estimate the amount of variable consideration that should be included in the transaction price utilizing either the expected value method or the most likely amount method depending on the nature of the variable consideration. Variable consideration is included in the transaction price if, in our judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Any estimates, including the effect of the constraint on variable consideration, are evaluated at each reporting period for any changes. In applying this guidance, Companies must also consider whether any significant financing components exist. The transaction price for all transactions is based on the price reflected in the individual customer’s purchase order. Variable consideration has not been identified as a significant component of the transaction price for any of our transactions. For those transactions where all performance obligations will be satisfied within one year or less, we apply the practical expedient outlined in ASC 606-10-32-18. This practical expedient allows us not to adjust promised consideration for the effects of a significant financing component if we expect at contract inception that the period between when we transfer the promised good or service to a customer and when the customer pays for that good or service will be one year or less. For those transactions that are expected to be completed after one year, we have assessed that there are no significant financing components because any difference between the promised consideration and the cash selling price of the good or service is for reasons other than the provision of financing. 4) Allocate the transaction price to performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation on a relative standalone selling price basis unless the transaction price is variable and meets the criteria to be allocated entirely to a performance obligation or to a distinct service that forms part of a single performance obligation. Where required, we determine standalone selling price (“SSP”) for each obligation based on consideration of both market and Company specific factors, including the selling price and profit margin for similar products, the cost to produce, and the anticipated margin. For those contracts that contain multiple performance obligations (primarily systems sales, as well as some aftermarket contracts requiring both time and material inputs), we must determine the SSP. We use a cost plus margin approach in determining the SSP for any materials related performance obligations (such as upgrades, spare parts, systems). To determine the SSP for labor related performance obligations (such as the labor component of installation), we use directly observable inputs based on the standalone sale prices for these services. 5) Recognize revenue when or as we have satisfied a performance obligation We satisfy performance obligations either over time or at a point in time. Revenue is recognized over time if either 1) the customer simultaneously receives and consumes the benefits provided by the entity’s performance, 2) the entity’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced, or 3) the entity’s performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date. If the entity does not satisfy a performance obligation over time, the related performance obligation is satisfied at a point in time by transferring the control of a promised good or service to a customer. Examples of control are using the asset to produce goods or services, enhance the value of other assets or settle liabilities, and holding or selling the asset. For over time recognition, ASC 606 requires us to select a single revenue recognition method for the performance obligation that faithfully depicts our performance in transferring control of the goods and services. The guidance allows entities to choose between two methods to measure progress toward complete satisfaction of a performance obligation: Output methods - recognize revenue on the basis of direct measurements of the value to the customer of the goods or services transferred to date relative to the remaining goods or services promised under the contract (e.g., surveys of performance completed to date, appraisals of results achieved, milestones reached, time elapsed, and units produced or units delivered); and Input methods - recognize revenue on the basis of the entity’s efforts or inputs to the satisfaction of a performance obligation (e.g., resources consumed, labor hours expended, costs incurred, or time elapsed) relative to the total expected inputs to the satisfaction of that performance obligation. We have the right to consideration from a customer in an amount that corresponds directly with the value to the customer of the entity’s performance completed to date (i.e., certain aftermarket contracts), as such we have elected a practical expedient to recognize revenue in the amount to which the entity has a right to invoice for such services. Product related revenues (whether for systems or aftermarket business) are recognized at a point in time, when they are shipped or delivered, depending on shipping terms. For installation services, revenue is recognized at a point in time, once the installation of the tool is complete. The nature of the installation services is such that the customer does not simultaneously receive and consume the benefits provided by the entity’s performance, nor does performance of installation services create or enhance an asset that the customer controls. Installation services do not create an asset with an alternative use to the entity, and the entity does not have an enforceable right to payment for performance completed to date. Contract liabilities are reflected as deferred revenue on the consolidated balance sheet. Contract liabilities relate to payments invoiced or received in advance of completion of performance obligations under a contract. Contract liabilities are recognized as revenue upon the fulfillment of performance obligations. Service-type warranties for any product are recognized over time, as these represent a stand ready obligation to service the product during the warranty period. Progress in the satisfaction of these performance obligations is measured using an input method of time elapsed. Maintenance and service contracts are recognized over time. Progress in the satisfaction of these performance obligations is measured using an input method of either time elapsed in the case of fixed period contracts, or labor hours expended, in the case of project-based contracts. |
Recognizing Assets related to Recoverable Customer Contract Costs | (j) Recognizing Assets related to Recoverable Customer Contract Costs We recognize an asset related to incremental costs incurred by us to obtain a contract with a customer if we expect to recover those costs. We will recognize an asset from costs incurred to fulfill a contract only if such costs relate directly to a contract with an entity that we can specifically identify, the costs incurred will generate or enhance resources that will be used in satisfying performance obligations in the future, and the costs are expected to be recovered. Any assets recognized related to costs to obtain or fulfill a contract are amortized on a systematic basis that is consistent with the transfer to the customer of the goods or services to which the asset relates. In substantially all of our business transactions, we incur incremental costs to obtain contracts with customers, in the form of sales commissions. We maintain a commission program which awards our employees for System sales, aftermarket activity and other individual goals. Under ASC 606, an asset is amortized on a systematic basis that is consistent with the transfer to the customer of the goods or services to which the asset relates. However, ASC 606 provides a practical expedient to allow for the recognition of commission expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less. Based on the nature of our commission agreements, all commissions are expensed as incurred based upon the expectation that the amortization period would be one year or less. |
Shipping and Handling Costs | (k) Shipping and Handling Costs Shipping and handling costs are included in cost of revenue. |
Stock-Based Compensation | (l) Stock-Based Compensation We generally recognize compensation expense for all stock-based payments to employees and directors, including grants of stock options and restricted stock units, based on the grant-date fair value of those stock-based payments. For stock option awards, we use the Black-Scholes option pricing model, adjusted for expected forfeitures. Other valuation models may be utilized in the limited circumstances where awards with market-based vesting considerations, such as the price of our common stock, or performance-based awards, are granted. Stock-based compensation expense is recognized ratably over the requisite service period. For each stock option or restricted stock unit grant with vesting based on a combination of time, market or performance conditions, where vesting will occur if either condition is met, the related compensation costs are recognized over the shorter of the explicit service period or the derived service period. See Note 13 for additional information relating to stock-based compensation. |
Income Taxes | (m) Income Taxes We record income taxes using the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax basis, and operating loss and tax credit carryforwards. Our consolidated financial statements contain certain deferred tax assets which have arisen primarily as a result of operating losses, as well as other temporary differences between financial and tax basis accounting. We establish a valuation allowance if the likelihood of realization of the deferred tax assets is reduced based on an evaluation of objective verifiable evidence. Significant management judgment is required in determining our provision for income taxes, our deferred tax assets and liabilities and any valuation allowance recorded against those net deferred tax assets. We evaluate the weight of all available evidence to determine whether it is more likely than not that some portion or all of the net deferred income tax assets will not be realized. Income taxes include the largest amount of tax benefit for an uncertain tax position that is more likely than not to be sustained upon audit based on the technical merits of the tax position. Settlements with tax authorities, the expiration of statutes of limitations for particular tax positions, or obtaining new information on particular tax positions may cause a change to the effective tax rate. We recognize accrued interest related to unrecognized tax benefits as interest expense and penalties within operating expense in the consolidated statements of operations. See Note 18 for additional information relating to income taxes. |
Computation of Net Income per Share | (n) Computation of Net Income per Share Basic earnings per share is computed by dividing income available to common stockholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) for the period. The computation of diluted earnings per share is similar to basic earnings per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive common shares had been issued, calculated using the treasury stock method. The components of net income per share are as follows: Year ended December 31, 2023 2022 2021 (in thousands, except per share data) Net income available to common stockholders $ 246,263 $ 183,079 $ 98,650 Weighted average shares of common stock outstanding used in computing basic income per share 32,758 33,043 33,555 Incremental options and RSUs 407 499 713 Weighted average shares of common stock used in computing diluted net income per share 33,165 33,542 34,268 Net income per share Basic $ 7.52 $ 5.54 $ 2.94 Diluted $ 7.43 $ 5.46 $ 2.88 Diluted weighted average common shares outstanding does not include restricted stock units outstanding to purchase 6,025, 4,929 and 2,554 common equivalent shares for the periods ended December 31, 2023, 2022 and 2021, respectively, as their effect would have been anti-dilutive. |
Accumulated Other Comprehensive Loss | (o) Accumulated Other Comprehensive Loss The following table presents the changes in accumulated other comprehensive loss, net of tax, by component, for the year ended December 31, 2023: Foreign Defined benefit currency pension plan Total (in thousands) Balance at December 31, 2022 $ (1,994) $ 26 $ (1,968) Other comprehensive income and pension reclassification 38 84 122 Balance at December 31, 2023 $ (1,956) $ 110 $ (1,846) |
Recent Accounting Guidance | (p) Recent Accounting Guidance In November 2023 the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ("ASU 2023-07"). ASU 2023-07 is intended to enhance disclosures for significant segment expenses for all public entities required to report segment information in accordance with ASC Topic 280, Segment Reporting ("ASC 280"). ASC 280 requires a public entity to report for each reportable segment a measure of segment profit or loss that its chief operating decision maker (“CODM”) uses to assess segment performance and to make decisions about resource allocations. ASU 2023-07 is intended to improve financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more useful financial analyses. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. A public entity should apply ASU 2023-07 retrospectively to all prior periods presented in the consolidated financial statements. The Company is currently evaluating the impact of ASU 2023-07 on its future consolidated financial statements and related disclosures. In December 2023 the FASB issued Accounting Standards Update 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . ASU 2023-09 is intended to enhance the transparency and decision usefulness of income tax disclosures. ASU 2023-09 addresses investor requests for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information. Early adoption is permitted. A public entity should apply ASU 2023-09 prospectively to all annual periods beginning after December 15, 2024. The Company is currently evaluating the impact of ASU 2023-09 on its future consolidated financial statements and related disclosures . |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies | |
Schedule of estimated useful lives of the related assets | Asset Classification Estimated Useful Life Land, buildings and equipment (under lease) Lesser of the lease term or estimated useful life of the asset Machinery and equipment 3 to 10 years |
Schedule of components of net income per share | Year ended December 31, 2023 2022 2021 (in thousands, except per share data) Net income available to common stockholders $ 246,263 $ 183,079 $ 98,650 Weighted average shares of common stock outstanding used in computing basic income per share 32,758 33,043 33,555 Incremental options and RSUs 407 499 713 Weighted average shares of common stock used in computing diluted net income per share 33,165 33,542 34,268 Net income per share Basic $ 7.52 $ 5.54 $ 2.94 Diluted $ 7.43 $ 5.46 $ 2.88 |
Schedule of changes in accumulated other comprehensive loss, net of tax | Foreign Defined benefit currency pension plan Total (in thousands) Balance at December 31, 2022 $ (1,994) $ 26 $ (1,968) Other comprehensive income and pension reclassification 38 84 122 Balance at December 31, 2023 $ (1,956) $ 110 $ (1,846) |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue | |
Schedule of revenue by discipline | Year ended December 31, 2023 2022 2021 (in thousands) Systems $ 883,604 $ 692,061 $ 454,598 Aftermarket 247,000 227,937 207,830 Total Revenue $ 1,130,604 $ 919,998 $ 662,428 |
Schedule of revenue by geographic markets | Year ended December 31, 2023 2022 2021 (in thousands) North America $ 174,810 $ 143,701 $ 48,715 Asia Pacific 811,308 673,752 516,105 Europe 144,486 102,545 97,608 Total Revenue $ 1,130,604 $ 919,998 $ 662,428 |
Schedule of Contract liabilities | Year ended December 31, 2023 2022 2021 (in thousands) Balance, beginning of the period $ 154,777 $ 68,436 $ 23,058 Deferral of revenue 185,688 146,674 66,349 Recognition of deferred revenue (129,580) (60,333) (20,971) Balance, end of the period $ 210,885 $ 154,777 $ 68,436 |
Cash, cash equivalents and re_2
Cash, cash equivalents and restricted cash (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Cash, cash equivalents and restricted cash | |
Schedule of reconciliation of cash, cash equivalents and restricted cash | December 31, December 31, 2023 2022 (in thousands) Cash and cash equivalents $ 167,297 $ 185,595 Long-term restricted cash 6,654 752 Total cash, cash equivalents and restricted cash $ 173,951 $ 186,347 |
Accounts Receivable and Allow_2
Accounts Receivable and Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables and Allowances for Credit Losses | |
Schedule of allowances for credit losses related to trade receivables | Year ended December 31, 2023 2022 (in thousands) Balance, beginning of period $ — $ — Provision for credit losses 1,117 — Charge-offs (657) — Recoveries — — Balance, end of period $ 460 $ — |
Components of accounts receivable | December 31, 2023 2022 (in thousands) Trade receivables $ 218,424 $ 169,773 Allowance for doubtful accounts (460) — Trade receivables, net $ 217,964 $ 169,773 |
Inventories, net (Tables)
Inventories, net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventories, net | |
Schedule of components of inventories | December 31, December 31, 2023 2022 (in thousands) Raw materials $ 231,200 $ 187,313 Work in process 45,373 35,069 Finished goods (completed systems) 29,909 20,024 Inventories, net $ 306,482 $ 242,406 |
Property, Plant and Equipment_2
Property, Plant and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment, net. | |
Schedule of components of property, plant and equipment | December 31, 2023 2022 (in thousands) Land and buildings $ 21,802 $ 18,001 Machinery and equipment 41,547 34,728 Construction in process 17,055 10,189 Total cost 80,404 62,918 Accumulated depreciation (26,433) (23,254) Property, plant and equipment, net $ 53,971 $ 39,664 |
Assets Manufactured for Inter_2
Assets Manufactured for Internal Use, net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Assets Manufactured for Internal Use, net | |
Schedule of components of assets manufactured for internal use | December 31, 2023 2022 (in thousands) Internal use assets $ 76,273 $ 61,603 Construction in process 236 2,629 Total cost 76,509 64,232 Accumulated depreciation (39,588) (33,992) Assets manufactured for internal use, net $ 36,921 $ 30,240 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases | |
Schedule of operating and finance lease right-of-use assets and related lease obligations | December 31, December 31, Leases Classification 2023 2022 Assets (in thousands) Operating leases Operating lease assets $ 30,716 $ 12,146 Finance lease Finance lease assets* 16,632 17,942 Total leased assets $ 47,348 $ 30,088 Liabilities Current Operating Other current liabilities $ 4,978 $ 5,367 Finance Current portion of finance lease obligation 1,511 1,229 Non-current Operating Other long-term liabilities 25,724 6,931 Finance Finance lease obligation 43,674 45,185 Total lease liabilities $ 75,887 $ 58,712 *Finance lease assets are recorded net of accumulated depreciation of $46.4 million and include $0.6 million of prepaid financing costs as of December 31, 2023. Finance lease assets are recorded net of accumulated depreciation of $45.9 million and include $0.6 million of prepaid financing costs as of December 31, 2022. |
Schedule of lease costs | Year ended December 31, Lease cost Classification 2023 2022 2021 Operating lease cost (in thousands) Product / services* Cost of revenue $ 7,297 $ 5,427 $ 2,978 Research and development Operating expenses 587 322 430 Sales and marketing* Operating expenses 1,674 1,526 1,605 General and administrative* Operating expenses 1,111 1,065 996 Total operating lease cost $ 10,669 $ 8,340 $ 6,009 Finance lease cost Depreciation of leased assets Cost of revenue, Research and development, Sales and marketing and General and administrative $ 1,310 $ 1,296 $ 1,306 Interest on lease liabilities Interest expense 4,874 4,992 5,086 Total finance lease cost $ 6,184 $ 6,288 $ 6,392 Total lease cost $ 16,853 $ 14,628 $ 12,401 * Product / services, sales and marketing and general and administrative expense also includes short-term lease and variable lease costs of approximately $2.1 million, $1.8 million and $1.9 million for the years ended December 31, 2023, 2022 2021, respectively. |
Schedule of future minimum operating and finance leases | Finance Operating Total Maturity of Lease Liabilities Leases Leases Leases (in thousands) 2024 $ 6,252 $ 6,529 $ 12,781 2025 5,930 4,970 10,900 2026 6,008 3,613 9,621 2027 6,128 2,530 8,658 2028 6,251 1,926 8,177 Thereafter 55,336 23,205 78,541 Total lease payments $ 85,905 $ 42,773 $ 128,678 Less interest portion* (40,720) (12,071) (52,791) Finance lease and operating lease obligations $ 45,185 $ 30,702 $ 75,887 * Finance lease interest calculated using the implied interest rate; operating lease interest calculated using estimated corporate borrowing rate. |
Schedule of weighted-average remaining lease term and discount rates | December 31, Lease term and discount rate 2023 Weighted-average remaining lease term (years): Operating leases 11.5 Finance leases 13.1 Weighted-average discount rate: Operating leases 5.5% Finance leases 10.5% |
Schedule of cash outflows by lease type | Year ended December 31, Cash paid for amounts included in the measurement of lease liabilities 2023 2022 2021 (in thousands) Operating cash outflows from operating leases $ 10,669 $ 8,340 $ 6,009 Operating cash outflows from finance leases 4,874 4,992 5,086 Financing cash outflows from finance leases 1,240 987 763 Operating lease assets obtained in exchange for operating lease liabilities 26,890 6,173 8,670 Finance lease assets obtained in exchange for new finance lease liabilities — — — |
Product Warranty (Tables)
Product Warranty (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Product Warranty | |
Schedule of product warranty liability | Year ended December 31, 2023 2022 2021 (in thousands) Balance at January 1 (beginning of year) $ 10,487 $ 6,924 $ 4,612 Warranties issued during the period 12,893 10,597 7,808 Settlements made during the period (10,230) (6,798) (4,282) Changes in estimate of liability for pre-existing warranties during the period 3,607 (236) (1,214) Balance at December 31 (end of period) $ 16,757 $ 10,487 $ 6,924 Amount classified as current $ 14,098 $ 8,299 $ 6,424 Amount classified as long-term (within other long-term liabilities) 2,659 2,188 500 Total warranty liability $ 16,757 $ 10,487 $ 6,924 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Employee Benefit Plans | |
Schedule of classification of liabilities in Consolidated Balance Sheets | Year ended December 31, 2023 2022 (in thousands) Long-term: Other long-term liabilities 3,160 3,516 Total liabilities $ 3,160 $ 3,516 |
Stock Award Plans and Stock B_2
Stock Award Plans and Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Stock Award Plans and Stock Based Compensation | |
Schedule of estimated weighted-average assumptions used in calculation of fair value of options granted | 2021 Weighted-average expected volatility 53.07% Weighted-average expected term 4.71 years Risk-free interest rate 1.22% Expected dividend yield 0.00% |
Summary of stock option activity | Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Options Price Term Value (in thousands) (years) (in thousands) Outstanding at December 31, 2022 5 $ 43.33 Granted — — Exercised (2) 13.75 Canceled — — Expired — — Outstanding at December 31, 2023 3 $ 61.81 4.9 $ 204 Exercisable at December 31, 2023 2 $ 61.81 4.9 $ 102 Options Vested at December 31, 2023 2 $ 61.81 4.9 $ 102 |
Schedule of changes in the Company's non-vested restricted stock units | Weighted-Average Grant Date Fair Shares/units Value per Share (in thousands) Outstanding at December 31, 2022 725 $ 39.23 Granted 220 125.11 Vested (397) 131.71 Forfeited (10) 51.94 Outstanding at December 31, 2023 538 $ 77.22 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Measurements | |
Schedule of Company's assets and liabilities by level within the fair value hierarchy | December 31, 2023 Fair Value Measurements Level 1 Level 2 Level 3 Total (in thousands) Assets Cash equivalents and other short-term investments: Cash equivalents (money market funds, U.S. Government Securities and Agency Investments) $ 118,278 $ — $ — $ 118,278 Short-term investments (U.S. Government Securities and Agency Investments) 339,240 — — 339,240 Total $ 457,518 $ — $ — $ 457,518 December 31, 2022 Fair Value Measurements Level 1 Level 2 Level 3 Total (in thousands) Assets Cash equivalents and other short-term investments: Cash equivalents (money market funds, U.S. Government Securities and Agency Investments) $ 111,771 $ 25,000 $ — $ 136,771 Short-term investments (U.S. Government Securities and Agency Investments) 245,247 — — 245,247 Total $ 357,018 $ 25,000 $ — $ 382,018 |
Business Segment and Geograph_2
Business Segment and Geographic Region Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Segment and Geographic Region Information | |
Schedule of revenue by product lines | Year ended December 31, 2023 2022 2021 (in thousands) Ion implantation systems and services $ 1,111,278 $ 898,132 $ 645,504 Other systems and services 19,326 21,866 16,924 Total revenue $ 1,130,604 $ 919,998 $ 662,428 |
Schedule of revenue and long-lived assets by geographic region | Long-Lived Revenue Assets (in thousands) 2023 United States $ 749,288 $ 86,482 Europe 45,583 382 Asia Pacific 335,733 4,040 $ 1,130,604 $ 90,904 2022 United States $ 634,081 $ 66,227 Europe 38,963 212 Asia Pacific 246,954 3,464 $ 919,998 $ 69,903 2021 United States $ 519,408 $ 63,590 Europe 36,622 191 Asia Pacific 106,398 3,194 $ 662,428 $ 66,975 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes | |
Schedule of income before income taxes | Year ended December 31, 2023 2022 2021 (in thousands) United States $ 270,842 $ 198,028 $ 116,380 Foreign 7,757 6,857 4,048 Income before income taxes $ 278,599 $ 204,885 $ 120,428 |
Schedule of provision for income taxes | Year ended December 31, 2023 2022 2021 (in thousands) Current: United States Federal $ 46,871 $ 8,430 $ — State 1,985 1,716 82 Foreign 3,498 3,124 1,439 Total current 52,354 13,270 1,521 Deferred: Federal (18,526) 9,097 20,521 State (440) (102) 406 Foreign (1,052) (459) (670) Total deferred (20,018) 8,536 20,257 Income tax provision $ 32,336 $ 21,806 $ 21,778 |
Schedule of reconciliation of income taxes at the United States Federal statutory rate to the effective income tax rate | Year ended December 31, 2023 2022 2021 (in thousands) Income taxes at the United States statutory rate $ 58,506 $ 43,026 $ 25,290 State income taxes 1,033 1,075 387 Effect of change in valuation allowance 1,978 680 (1,443) Foreign income tax rate differentials 329 289 152 Stock-based compensation (6,718) (3,818) (3,658) Internal revenue code section 162(m) limitation 4,488 2,692 1,481 Credit expirations 784 1,181 2,342 Rate change 44 94 159 Credit generation (6,900) (4,764) (3,096) Discrete items, net 2,161 206 72 GILTI inclusion 45 69 301 Foreign-derived intangible income (24,052) (20,526) — Other, net 638 1,602 (209) Income tax provision $ 32,336 $ 21,806 $ 21,778 |
Schedule of significant components of current and long-term deferred income taxes | Year ended December 31, 2023 2022 (in thousands) Deferred tax assets: State net operating loss carryforwards $ 96 $ 291 Foreign net operating loss carryforwards 182 276 Federal tax credit carryforwards 1,999 — State tax credit carryforwards 9,560 8,683 Property, plant and equipment 6,979 8,755 Operating lease liability 5,564 1,564 Accrued compensation 242 276 Inventories 804 1,613 Stock compensation 1,790 1,620 Warranty 3,108 1,993 Deferred revenue 6,389 4,501 Capitalized research and development costs 38,036 18,067 Gross deferred tax assets 74,749 47,639 Valuation allowance (10,963) (8,370) Net deferred tax assets 63,786 39,269 Deferred tax liabilities: Intangible assets — (176) Right-of-use asset (9,155) (5,400) Other (1,203) (1,992) Gross deferred tax liabilities (10,358) (7,568) Deferred taxes, net $ 53,428 $ 31,701 |
Schedule of reconciliation of the beginning and ending balance of unrecognized tax benefits | Year ended December 31, 2023 2022 2021 (in thousands) Balance at beginning of year $ 10,443 $ 9,961 $ 10,044 Decrease in unrecognized tax benefits as a result of tax positions taken during a prior period (271) (122) (546) Decreases in unrecognized tax benefits related to settlements with tax authorities — (708) — Reductions to unrecognized tax benefits as a result of a lapse of the applicable statute of limitation — — (472) Increases in unrecognized tax benefits as a result of tax positions taken during the current period 1,754 1,312 935 Balance at end of year $ 11,926 $ 10,443 $ 9,961 Recorded as other long-term liability $ 8,344 $ 7,190 $ — Recorded as a decrease in deferred tax assets 3,582 3,253 9,961 Balance at end of year $ 11,926 $ 10,443 $ 9,961 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Foreign Currency (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Summary of Significant Accounting Policies | |||
Foreign exchange gains (losses) realized | $ (0.5) | $ (6.6) | $ (2.5) |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Property, Plant and Equipment and Impairment of Long Lived Assets (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 30, 2015 | |
Impairment of Long-Lived Assets | ||||
Impairment of long-lived assets | $ 0 | $ 0 | $ 0 | |
Minimum | ||||
Property, plant and equipment | ||||
Lease term | 1 year | |||
Capitalized cost of property repairs and maintenance | $ 2,500 | |||
Maximum | ||||
Property, plant and equipment | ||||
Lease term | 16 years | |||
Machinery and equipment | Minimum | ||||
Property, plant and equipment | ||||
Useful life | 3 years | |||
Machinery and equipment | Maximum | ||||
Property, plant and equipment | ||||
Useful life | 10 years | |||
Beverly Property Owner LLC | Land and building | ||||
Property, plant and equipment | ||||
Lease term | 22 years | |||
Beverly Property Owner LLC | Building | ||||
Property, plant and equipment | ||||
Lease term | 22 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Concentration of Risk (Details) - customer | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Total revenue | Customer concentration risk | |||
Concentration of Risk | |||
Number of customers | 0 | 2 | 2 |
Total revenue | Customer concentration risk | Ten largest customers | |||
Concentration of Risk | |||
Number of customers | 10 | 10 | 10 |
Percentage of concentration risk | 51.70% | 59.40% | 69.50% |
Total revenue | Customer concentration risk | First customer | |||
Concentration of Risk | |||
Percentage of concentration risk | 13.10% | 17.80% | |
Total revenue | Customer concentration risk | Second customer | |||
Concentration of Risk | |||
Percentage of concentration risk | 10% | 11.50% | 15.40% |
Accounts receivable | Credit concentration risk | |||
Concentration of Risk | |||
Number of customers | 1 | 2 | |
Accounts receivable | Credit concentration risk | First customer | |||
Concentration of Risk | |||
Percentage of concentration risk | 12.20% | 19.40% | |
Accounts receivable | Credit concentration risk | Second customer | |||
Concentration of Risk | |||
Percentage of concentration risk | 11.50% |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Revenue Recognition (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Aftermarket | |
Product warranty period | 90 days |
Systems | |
Product warranty period | 1 year |
Minimum | Aftermarket | |
Product warranty period | 1 year |
Maximum | Aftermarket | |
Product warranty period | 3 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Net Income per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Summary of Significant Accounting Policies | |||
Anti-dilutive common equivalent shares excluded from calculation | 6,025 | 4,929 | 2,554 |
Net income per share: | |||
Net income available to common stockholders | $ 246,263 | $ 183,079 | $ 98,650 |
Weighted average shares of common stock outstanding used in computing basic income per share | 32,758 | 33,043 | 33,555 |
Incremental options and RSUs | 407 | 499 | 713 |
Weighted average shares of common stock used in computing diluted net income per share | 33,165 | 33,542 | 34,268 |
Net income per share | |||
Basic | $ 7.52 | $ 5.54 | $ 2.94 |
Diluted | $ 7.43 | $ 5.46 | $ 2.88 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Accumulated Other Comprehensive Income (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Changes in accumulated other comprehensive (loss) income, net of tax | |
Balance at December 31, 2022 | $ (1,968) |
Other comprehensive income and pension reclassification | 122 |
Balance at December 31, 2023 | (1,846) |
Foreign currency | |
Changes in accumulated other comprehensive (loss) income, net of tax | |
Balance at December 31, 2022 | (1,994) |
Other comprehensive income and pension reclassification | 38 |
Balance at December 31, 2023 | (1,956) |
Defined benefit pension plan | |
Changes in accumulated other comprehensive (loss) income, net of tax | |
Balance at December 31, 2022 | 26 |
Other comprehensive income and pension reclassification | 84 |
Balance at December 31, 2023 | $ 110 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue | ||||
Deferred revenue | $ 210,885 | $ 154,777 | $ 68,436 | $ 23,058 |
Short-term deferred revenue | 164,677 | 123,471 | ||
Long-term deferred revenue | $ 46,208 | $ 31,306 | ||
Maximum | ||||
Disaggregation of Revenue | ||||
Unsatisfied extended warranty performance obligations, period | 24 months | |||
Systems | ||||
Disaggregation of Revenue | ||||
Payment upon shipment of the system, as a percent | 90% | |||
Payment upon acceptance, as a percent | 10% | |||
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 | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue | |||
Total Revenue | $ 1,130,604 | $ 919,998 | $ 662,428 |
North America | |||
Disaggregation of Revenue | |||
Total Revenue | 174,810 | 143,701 | 48,715 |
Asia Pacific | |||
Disaggregation of Revenue | |||
Total Revenue | 811,308 | 673,752 | 516,105 |
Europe | |||
Disaggregation of Revenue | |||
Total Revenue | 144,486 | 102,545 | 97,608 |
Systems | |||
Disaggregation of Revenue | |||
Total Revenue | 883,604 | 692,061 | 454,598 |
Aftermarket | |||
Disaggregation of Revenue | |||
Total Revenue | $ 247,000 | $ 227,937 | $ 207,830 |
Revenue - Deferred revenue (Det
Revenue - Deferred revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue | |||
Balance, beginning of the period | $ 154,777 | $ 68,436 | $ 23,058 |
Deferral of revenue | 185,688 | 146,674 | 66,349 |
Recognition of deferred revenue | (129,580) | (60,333) | (20,971) |
Balance, end of the period | $ 210,885 | $ 154,777 | $ 68,436 |
Cash, cash equivalents and re_3
Cash, cash equivalents and restricted cash (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Cash and cash equivalents | $ 167,297 | $ 185,595 | ||
Long-term restricted cash | 6,654 | 752 | ||
Total cash, cash equivalents and restricted cash | 173,951 | $ 186,347 | $ 295,680 | $ 204,232 |
Letter of credit related to workers' compensation insurance | 700 | |||
Deposit related to customs activity | 100 | |||
Beverly Property Owner LLC | ||||
Security Deposit | 5,900 | |||
Revolving credit facility | ||||
Restricted cash which relates to support of outstanding letters of credit | $ 6,700 |
Accounts Receivable and Allow_3
Accounts Receivable and Allowance for Credit Losses - Trade Receivables (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Receivables and Allowances for Credit Losses | |
Charge-offs | $ (657) |
Provision for credit losses | 1,117 |
Balance, end of period | $ 460 |
Accounts Receivable and Allow_4
Accounts Receivable and Allowance for Credit Losses - Components of Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Receivables and Allowances for Credit Losses | ||
Trade receivables | $ 218,424 | $ 169,773 |
Allowance for doubtful accounts | (460) | |
Trade receivable, net | $ 217,964 | $ 169,773 |
Inventories, net (Details)
Inventories, net (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Inventories, net | ||
Raw materials | $ 231,200 | $ 187,313 |
Work in process | 45,373 | 35,069 |
Finished goods (completed systems) | 29,909 | 20,024 |
Inventories, net | $ 306,482 | $ 242,406 |
Inventories, net - Additional I
Inventories, net - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Inventories, net additional information | |||
Increase in inventory reserves | $ 1.5 | ||
Charges to cost of sales due to lower of cost or market value | 5.2 | $ 4.6 | $ 3.8 |
Inventory on consignment at customer locations | 6.5 | 6.4 | |
Inventory valuation reserve | |||
Inventories, net additional information | |||
Inventory reserves | $ 5.2 | $ 6.7 |
Property, Plant and Equipment_3
Property, Plant and Equipment, net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, plant and equipment | |||
Gross | $ 80,404 | $ 62,918 | |
Accumulated depreciation | (26,433) | (23,254) | |
Net | 53,971 | 39,664 | |
Depreciation expense | 6,200 | 5,100 | $ 4,200 |
Land and building | |||
Property, plant and equipment | |||
Gross | 21,802 | 18,001 | |
Machinery and equipment | |||
Property, plant and equipment | |||
Gross | 41,547 | 34,728 | |
Construction in progress | |||
Property, plant and equipment | |||
Gross | $ 17,055 | $ 10,189 |
Assets Manufactured for Inter_3
Assets Manufactured for Internal Use, net - Components (Details) - Assets Manufactured for Internal Use - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Assets manufactured for internal use | |||
Useful life | 10 years | ||
Total cost | $ 76,509 | $ 64,232 | |
Accumulated depreciation | (39,588) | (33,992) | |
Assets manufactured for internal use, net | 36,921 | 30,240 | |
Depreciation expense | 5,600 | 5,200 | $ 5,300 |
Internal use assets | |||
Assets manufactured for internal use | |||
Total cost | 76,273 | 61,603 | |
Construction in process | |||
Assets manufactured for internal use | |||
Total cost | $ 236 | $ 2,629 |
Leases (Details)
Leases (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Lease | |
Option to extend | true |
Minimum | |
Lease | |
Renewal term | 1 year |
Maximum | |
Lease | |
Renewal term | 3 years |
Leases - Operating and Finance
Leases - Operating and Finance Lease Right-of-use-assets and Related Lease Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Leases | ||
Operating lease assets | $ 30,716 | $ 12,146 |
Finance lease assets | 16,632 | 17,942 |
Total leased assets | 47,348 | 30,088 |
Operating liabilities current | $ 4,978 | $ 5,367 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other Liabilities, Current | Other Liabilities, Current |
Finance liabilities current | $ 1,511 | $ 1,229 |
Operating liabilities noncurrent | $ 25,724 | $ 6,931 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Finance liabilities noncurrent | $ 43,674 | $ 45,185 |
Total lease liabilities | 75,887 | 58,712 |
Finance lease, accumulated depreciation | 46,400 | 45,900 |
Prepaid financing costs | $ 600 | $ 600 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lease cost | |||
Total operating lease cost | $ 10,669 | $ 8,340 | $ 6,009 |
Depreciation of leased assets | 1,310 | 1,296 | 1,306 |
Interest on lease liabilities | 4,874 | 4,992 | 5,086 |
Total finance lease cost | 6,184 | 6,288 | 6,392 |
Total lease cost | 16,853 | 14,628 | 12,401 |
Short-term lease and variable lease costs | 2,100 | 1,800 | 1,900 |
Product / services* | |||
Lease cost | |||
Total operating lease cost | 7,297 | 5,427 | 2,978 |
Research and development | |||
Lease cost | |||
Total operating lease cost | 587 | 322 | 430 |
Sales and marketing* | |||
Lease cost | |||
Total operating lease cost | 1,674 | 1,526 | 1,605 |
General and administrative* | |||
Lease cost | |||
Total operating lease cost | $ 1,111 | $ 1,065 | $ 996 |
Leases - Future Minimum Cash Ou
Leases - Future Minimum Cash Outflow and Weighted-average Remaining Lease Term and Discount Rate (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Future minimum lease payments finance lease | ||
2024 | $ 6,252 | |
2025 | 5,930 | |
2026 | 6,008 | |
2027 | 6,128 | |
2028 | 6,251 | |
Thereafter | 55,336 | |
Total lease payments | 85,905 | |
Less interest portion | (40,720) | |
Finance lease obligations | 45,185 | |
Future minimum lease payments operating lease | ||
2024 | 6,529 | |
2025 | 4,970 | |
2026 | 3,613 | |
2027 | 2,530 | |
2028 | 1,926 | |
Thereafter | 23,205 | |
Total lease payments | 42,773 | |
Less interest portion | (12,071) | |
Operating lease obligations | 30,702 | |
Future minimum lease payments finance and operating lease | ||
2024 | 12,781 | |
2025 | 10,900 | |
2026 | 9,621 | |
2027 | 8,658 | |
2028 | 8,177 | |
Thereafter | 78,541 | |
Total lease payments | 128,678 | |
Less interest portion | (52,791) | |
Total lease liabilities | 75,887 | $ 58,712 |
Lease term and discount rate | ||
Right of use asset | 30,716 | 12,146 |
Prepaid rent | 600 | 600 |
Operating liabilities noncurrent | $ 25,724 | $ 6,931 |
Finance lease term | 22 years | |
Operating leases -Weighted-average remaining lease term (in years) | 11 years 6 months | |
Finance leases - Weighted-average remaining lease term (in years) | 13 years 1 month 6 days | |
Operating leases - Weighted-average discount rate | 5.50% | |
Finance leases - Weighted-average discount rate | 10.50% | |
Minimum | ||
Lease term and discount rate | ||
Operating lease term | 1 year | |
Maximum | ||
Lease term and discount rate | ||
Operating lease term | 16 years |
Leases - Cash Flow by Lease Typ
Leases - Cash Flow by Lease Type (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases | |||
Operating cash outflows from operating leases | $ 10,669 | $ 8,340 | $ 6,009 |
Operating cash outflows from finance leases | 4,874 | 4,992 | 5,086 |
Financing cash outflows from finance leases | 1,240 | 987 | 763 |
Operating lease assets obtained in exchange for operating lease liabilities | $ 26,890 | $ 6,173 | $ 8,670 |
Product Warranty (Details)
Product Warranty (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Product Warranty | |||
Product warranty period | 1 year | ||
Changes in standard product warranty liability | |||
Balance at January 1 (beginning of year) | $ 10,487 | $ 6,924 | $ 4,612 |
Warranties issued during the period | 12,893 | 10,597 | 7,808 |
Settlements made during the period | (10,230) | (6,798) | (4,282) |
Changes in estimate of liability for pre-existing warranties during the period | 3,607 | (236) | (1,214) |
Balance at September 30 (end of period) | 16,757 | 10,487 | 6,924 |
Product warranty classification | |||
Amount classified as current | 14,098 | 8,299 | 6,424 |
Amount classified as long-term (within other long-term liabilities) | 2,659 | 2,188 | 500 |
Total warranty liability | $ 16,757 | $ 10,487 | $ 6,924 |
Financing Arrangements (Details
Financing Arrangements (Details) - USD ($) $ in Thousands | Jan. 30, 2015 | Dec. 31, 2023 | Dec. 28, 2023 | Apr. 05, 2023 | Dec. 31, 2022 |
Financing Arrangements | |||||
Long-term finance lease obligation | $ 43,674 | $ 45,185 | |||
Finance liabilities current | 1,511 | $ 1,229 | |||
Sale leaseback obligation | |||||
Financing Arrangements | |||||
Long-term finance lease obligation | 45,200 | ||||
Finance liabilities current | 1,500 | ||||
Security deposit | 5,900 | ||||
Beverly Property Owner LLC | |||||
Financing Arrangements | |||||
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 | ||||
Letter of credit | $ 5,900 |
Employee Benefit Plans - Define
Employee Benefit Plans - Defined Contribution Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Contribution Plan | |||
Employer contributed by eligible participants | 50% | 50% | 50% |
Pre-tax compensation contributed | 6% | ||
Defined contribution plan expenses | $ 3.4 | $ 2.7 | $ 2.2 |
Regular employees | |||
Defined Contribution Plan | |||
Maximum contribution per employee under the Axcelis Long-Term Investment Plan (as a percent) | 35% | ||
Highly compensated employees | |||
Defined Contribution Plan | |||
Maximum contribution per employee under the Axcelis Long-Term Investment Plan (as a percent) | 16% |
Employee Benefit Plans - Other
Employee Benefit Plans - Other Compensation Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Classification of liabilities in the Consolidated Balance Sheets | |||
Other long-term liabilities | $ 3,160 | $ 3,516 | |
Total liabilities | 3,160 | 3,516 | |
Plan expenses | $ 1,700 | $ 1,500 | $ 1,500 |
Stock Award Plans and Stock B_3
Stock Award Plans and Stock Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
May 12, 2012 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | May 02, 2012 | |
Stock-Based Compensation | |||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |||
Stock-Based Compensation Expense | |||||
Forfeiture rate (as a percent) | 5% | 5% | 5% | ||
Stock-based compensation expense | $ 18,300 | $ 13,400 | $ 12,100 | ||
Benefit of tax deductions in excess of recognized compensation cost | 10,200 | ||||
Tax benefit | $ 2,200 | ||||
Estimated weighted-average assumptions | |||||
Weighted-average expected volatility (as a percent) | 53.07% | ||||
Weighted-average expected term | 4 years 8 months 15 days | ||||
Risk-free interest rate | 1.22% | ||||
Expected dividend yield (as a percent) | 0% | ||||
Options | |||||
Granted (in shares) | 0 | 0 | |||
Common Stock | |||||
Employee Stock Purchase Plan | |||||
Number of shares purchased under the plan | 16,000 | 29,000 | 26,000 | ||
Options | |||||
Exercised (in shares) | (3,000) | (103,000) | (396,000) | ||
Employee Stock Purchase Plan | |||||
Stock-Based Compensation | |||||
Number of shares of common stock originally reserved for future grant | 900,000 | ||||
Employee Stock Purchase Plan | |||||
Purchase price as a percentage of the market value of a common stock on the day the stock is purchased | 85% | ||||
Offering period over which compensation expense is amortized | 6 months | ||||
Number of shares purchased under the plan | 9,965 | ||||
Stock-Based Compensation Expense | |||||
Stock-based compensation expense | $ 400 | $ 300 | $ 200 | ||
Employee Stock Purchase Plan | Maximum | |||||
Employee Stock Purchase Plan | |||||
Payroll deductions as a percentage of employee's salary | 10% | ||||
Number of shares purchased under the plan | 100,000 | 100,000 | 100,000 | ||
Restricted Stock Units | |||||
Shares/units | |||||
Outstanding at the beginning of the period (in shares) | 725,000 | ||||
Granted (in shares) | 220,000 | ||||
Vested (in shares) | (397,000) | ||||
Forfeited (in shares) | (10,000) | ||||
Outstanding at the end of the period (in shares) | 538,000 | 725,000 | |||
Weighted-Average Grant Date Fair Value per Share | |||||
Outstanding at the beginning of the period (in dollars per share) | $ 39.23 | ||||
Granted (in dollars per share) | 125.11 | $ 55.47 | $ 38.54 | ||
Vested (in dollars per share) | 131.71 | ||||
Forfeited (in dollars per share) | 51.94 | ||||
Outstanding at the end of the period (in dollars per share) | $ 77.22 | $ 39.23 | |||
Restricted Stock Units | Employees | |||||
Stock-Based Compensation | |||||
Vesting period | 4 years | ||||
Restricted Stock Units | Non-employee members of Board of Director | |||||
Stock-Based Compensation | |||||
Vesting period | 1 year | ||||
Stock Option Awards | |||||
Options | |||||
Outstanding at the beginning of the period (in shares) | 5,000 | ||||
Vested (in shares) | 750 | 750 | 0 | ||
Exercised (in shares) | (2,000) | ||||
Outstanding at the end of the period (in shares) | 3,000 | 5,000 | |||
Exercisable (in shares) | 2,000 | ||||
Options Vested at the end of the period (in shares) | 2,000 | ||||
Weighted Average Exercise Price | |||||
Outstanding at the beginning of the period (in dollars per share) | $ 43.33 | ||||
Exercised (in dollars per share) | 13.75 | ||||
Outstanding at the end of the period (in dollars per share) | 61.81 | $ 43.33 | |||
Exercisable at the end of the period (in dollars per share) | 61.81 | ||||
Options Vested at the end of the period (in dollars per share) | $ 61.81 | ||||
Weighted Average Remaining Contractual Term | |||||
Outstanding at the end of the period | 4 years 10 months 24 days | ||||
Exercisable at the end of the period | 4 years 10 months 24 days | ||||
Options Vested at the end of the period | 4 years 10 months 24 days | ||||
Aggregate Intrinsic Value | |||||
Outstanding at the end of the period (in dollars) | $ 204 | ||||
Exercisable at the end of the period (in dollars) | 102 | ||||
Options Vested at the end of the period (in dollars) | 102 | ||||
Additional disclosure | |||||
Total intrinsic value of options exercised (in dollars) | 200 | $ 5,400 | $ 12,800 | ||
Stock Option Awards | Maximum | |||||
Additional disclosure | |||||
Total forfeiture adjusted unrecognized compensation cost (in dollars) | $ 100 | ||||
Stock Option Awards | Employees | |||||
Stock-Based Compensation | |||||
Vesting period | 4 years | ||||
Period after termination to exercise awards that were vested | 90 days | ||||
Period after termination to retiring employees to exercise vested awards | 1 year | ||||
Stock Option Awards | Non-employee members of Board of Director | |||||
Stock-Based Compensation | |||||
Vesting period | 6 months | ||||
Restricted stock | |||||
Shares/units | |||||
Granted (in shares) | 0 | 0 | 0 | ||
Vested (in shares) | 0 | 0 | 0 | ||
Equity incentive plan 2012 | |||||
Stock-Based Compensation | |||||
Number of shares of common stock originally reserved for future grant | 9,500,000 | ||||
Common stock, par value (in dollars per share) | $ 0.001 | ||||
Number of shares of common stock available for future grants | 800,000 | ||||
Number of shares approved | 7,760,000 | ||||
Shares from expirations or forfeitures | 1,780,000 | ||||
Options | |||||
Outstanding at the end of the period (in shares) | 3,000 | ||||
Shares/units | |||||
Outstanding at the end of the period (in shares) | 500,000 | ||||
Equity incentive plan 2012 | Restricted Stock Units | |||||
Additional disclosure | |||||
Total forfeiture adjusted unrecognized compensation cost (in dollars) | $ 31,700 | ||||
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 2 years 8 months 12 days | ||||
Equity incentive plan 2012 | Stock Option Awards | |||||
Stock-Based Compensation | |||||
Options Expiration period | 7 years | ||||
Equity incentive plan 2012 | Restricted stock | |||||
Shares/units | |||||
Granted (in shares) | 0 | 0 | 0 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - shares shares in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Stockholders' Equity | ||
Number of common stock authorized | 75,000 | 75,000 |
Number of common stock outstanding | 32,685 | 32,775 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value Measurements | ||
Short-term investments (U.S. Government Securities and Agency Investments) | $ 338,851 | $ 246,571 |
Recurring | Estimate of fair value measurement | ||
Fair Value Measurements | ||
Total | 457,518 | 382,018 |
Recurring | Money market funds, U.S. Government Securities and Agency Investments | Estimate of fair value measurement | ||
Fair Value Measurements | ||
Cash equivalents (money market funds, U.S. Government Securities and Agency Investments) | 118,278 | 136,771 |
Recurring | U.S. Government Securities and Agency Investments | Estimate of fair value measurement | ||
Fair Value Measurements | ||
Short-term investments (U.S. Government Securities and Agency Investments) | 339,240 | 245,247 |
Recurring | Level 1 | ||
Fair Value Measurements | ||
Total | 457,518 | 357,018 |
Recurring | Level 1 | Money market funds, U.S. Government Securities and Agency Investments | ||
Fair Value Measurements | ||
Cash equivalents (money market funds, U.S. Government Securities and Agency Investments) | 118,278 | 111,771 |
Recurring | Level 1 | U.S. Government Securities and Agency Investments | ||
Fair Value Measurements | ||
Short-term investments (U.S. Government Securities and Agency Investments) | $ 339,240 | 245,247 |
Recurring | Level 2 | ||
Fair Value Measurements | ||
Total | 25,000 | |
Recurring | Level 2 | Money market funds, U.S. Government Securities and Agency Investments | ||
Fair Value Measurements | ||
Cash equivalents (money market funds, U.S. Government Securities and Agency Investments) | $ 25,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2024 | Dec. 31, 2023 | |
Purchase Commitments | ||
Contracts and purchase orders for inventory and other expenditures | $ 304.1 | |
Forecast [Member] | ||
Purchase Commitments | ||
Contracts and purchase orders for inventory and other expenditures | $ 293.8 |
Business Segment and Geograph_3
Business Segment and Geographic Region Information - Number of Segments (Details) | 12 Months Ended |
Dec. 31, 2023 segment | |
Business Segment and Geographic Region Information | |
Number of business segments | 1 |
Business Segment and Geograph_4
Business Segment and Geographic Region Information - Revenue by Product Line (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue by product lines | |||
Total revenue | $ 1,130,604 | $ 919,998 | $ 662,428 |
Ion implantation systems and services | |||
Revenue by product lines | |||
Total revenue | 1,111,278 | 898,132 | 645,504 |
Other systems and services | |||
Revenue by product lines | |||
Total revenue | $ 19,326 | $ 21,866 | $ 16,924 |
Business Segment and Geograph_5
Business Segment and Geographic Region Information - Revenue and Long-Lived Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue and long-lived assets by geographic region | |||
Total revenue | $ 1,130,604 | $ 919,998 | $ 662,428 |
Long-Lived Assets | 90,904 | 69,903 | 66,975 |
United States | |||
Revenue and long-lived assets by geographic region | |||
Total revenue | 749,288 | 634,081 | 519,408 |
Long-Lived Assets | 86,482 | 66,227 | 63,590 |
Europe | |||
Revenue and long-lived assets by geographic region | |||
Total revenue | 45,583 | 38,963 | 36,622 |
Long-Lived Assets | 382 | 212 | 191 |
Asia Pacific | |||
Revenue and long-lived assets by geographic region | |||
Total revenue | 335,733 | 246,954 | 106,398 |
Long-Lived Assets | 4,040 | 3,464 | 3,194 |
International | Total revenue | Geographic concentration risk | |||
Revenue and long-lived assets by geographic region | |||
Total revenue | $ 950,400 | $ 776,300 | $ 613,500 |
Percentage of revenue | 84.10% | 84.40% | 92.60% |
Income Taxes - Income before In
Income Taxes - Income before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income (loss) before income taxes | |||
United States | $ 270,842 | $ 198,028 | $ 116,380 |
Foreign | 7,757 | 6,857 | 4,048 |
Income before income taxes | $ 278,599 | $ 204,885 | $ 120,428 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | |||
Federal | $ 46,871 | $ 8,430 | |
State | 1,985 | 1,716 | $ 82 |
Foreign | 3,498 | 3,124 | 1,439 |
Total current | 52,354 | 13,270 | 1,521 |
Deferred: | |||
Federal | (18,526) | 9,097 | 20,521 |
State | (440) | (102) | 406 |
Foreign | (1,052) | (459) | (670) |
Total deferred | (20,018) | 8,536 | 20,257 |
Income tax provision | $ 32,336 | $ 21,806 | $ 21,778 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of income taxes at the United States Federal statutory rate to the effective income tax rate | |||
Effective Federal income tax rate | 11.60% | ||
Income taxes at the United States statutory rate | $ 58,506 | $ 43,026 | $ 25,290 |
State income taxes | 1,033 | 1,075 | 387 |
Effect of change in valuation allowance | 1,978 | 680 | (1,443) |
Foreign income tax rate differentials | 329 | 289 | 152 |
Stock based compensation | (6,718) | (3,818) | (3,658) |
Internal revenue code section 162(m) limitation | 4,488 | 2,692 | 1,481 |
Credit expirations | 784 | 1,181 | 2,342 |
Rate change | 44 | 94 | 159 |
Credit generation | (6,900) | (4,764) | (3,096) |
Discrete items, net | 2,161 | 206 | 72 |
GILTI inclusion | 45 | 69 | 301 |
Foreign-derived intangible income | (24,052) | (20,526) | |
Other, net | 638 | 1,602 | (209) |
Income tax provision | $ 32,336 | $ 21,806 | $ 21,778 |
Income Taxes - components of Lo
Income Taxes - components of Long Term Deferred Income Taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
State net operating loss carryforwards | $ 96 | $ 291 |
Foreign net operating loss carryforwards | 182 | 276 |
Federal tax credit carryforwards | 1,999 | |
State tax credit carryforwards | 9,560 | 8,683 |
Property, plant and equipment | 6,979 | 8,755 |
Operating lease liability | 5,564 | 1,564 |
Accrued compensation | 242 | 276 |
Inventories | 804 | 1,613 |
Stock compensation | 1,790 | 1,620 |
Warranty | 3,108 | 1,993 |
Deferred revenue | 6,389 | 4,501 |
Capitalized research and development costs | 38,036 | 18,067 |
Gross deferred tax assets | 74,749 | 47,639 |
Valuation allowance | (10,963) | (8,370) |
Net deferred tax assets | 63,786 | 39,269 |
Deferred tax liabilities: | ||
Intangible assets | (176) | |
Right-of-use asset | (9,155) | (5,400) |
Other | (1,203) | (1,992) |
Gross deferred tax liabilities | (10,358) | (7,568) |
Deferred taxes, net | $ 53,428 | $ 31,701 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of the beginning and ending balance of unrecognized tax benefits | |||
Balance at beginning of year | $ 10,443 | $ 9,961 | $ 10,044 |
Decrease in unrecognized tax benefits as a result of tax positions taken during a prior period | (271) | (122) | (546) |
Decreases in unrecognized tax benefits related to settlements with tax authorities | (708) | ||
Reductions to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations | (472) | ||
Increases in unrecognized tax benefits as a result of tax positions taken during the current period | 1,754 | 1,312 | 935 |
Balance at end of year | 11,926 | 10,443 | 9,961 |
Recorded as other long-term liability | 8,344 | 7,190 | |
Recorded as a decrease in deferred tax assets | $ 3,582 | $ 3,253 | $ 9,961 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes | ||||
Deferred tax assets | $ 53,428 | $ 31,701 | ||
Increase in deferred tax asset | 20,000 | |||
Deferred tax assets valuation allowance | 10,963 | 8,370 | ||
Increase in valuation allowance | 2,600 | |||
Cash associated with indefinitely reinvested foreign earnings | 11,800 | |||
Unrecognized tax benefits related to uncertain tax positions | 11,926 | 10,443 | $ 9,961 | $ 10,044 |
Recorded as other long-term liability | 8,344 | $ 7,190 | ||
Interest and penalty expense recognized related to unrecognized tax benefits | $ 500 |
Income Taxes - Operating Loss C
Income Taxes - Operating Loss Carryforwards (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Federal | |
Operating loss carryforwards | |
Net operating loss carryforwards | $ 0.1 |
Foreign | |
Operating loss carryforwards | |
Net operating loss carryforwards | 0.2 |
Research and development and other tax credit carryforwards | |
Operating loss carryforwards | |
Net operating loss carryforwards | 15.2 |
Uncertain tax position | $ 3 |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Allowance for doubtful accounts and returns | |||
Changes in Valuation and Qualifying Accounts | |||
Charged to Costs and Expenses | $ 1,117 | ||
Deductions | 657 | ||
Balance at End of Period | 460 | ||
Deferred tax valuation allowance | |||
Changes in Valuation and Qualifying Accounts | |||
Balance at Beginning of Period | 8,370 | $ 7,689 | $ 9,133 |
Charged to Costs and Expenses | 3,196 | 1,529 | 780 |
Deductions | 603 | 848 | 2,224 |
Balance at End of Period | $ 10,963 | $ 8,370 | $ 7,689 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |