Axcelis (ACLS) 10-Q1 Aug 242024 Q2 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2024	Jul. 29, 2024
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2024
Securities Act File Number	000-30941
Entity Registrant Name	AXCELIS TECHNOLOGIES INC
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	34-1818596
Entity Address, Address Line One	108 Cherry Hill Drive
Entity Address, City or Town	Beverly
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	01915
City Area Code	978
Local Phone Number	787-4000
Title of 12(b) Security	Common Stock, $0.001 par value
Trading Symbol	ACLS
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		32,617,587
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001113232
Amendment Flag	false

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenue:
Total revenue	$ 256,512	$ 273,970	$ 508,883	$ 527,990
Cost of revenue:
Total cost of revenue	144,103	154,267	280,423	304,268
Gross profit	112,409	119,703	228,460	223,722
Operating expenses:
Research and development	25,786	24,130	51,448	47,903
Sales and marketing	17,230	15,537	34,675	29,681
General and administrative	16,583	16,328	32,988	31,073
Total operating expenses	59,599	55,995	119,111	108,657
Income from operations	52,810	63,708	109,349	115,065
Other income (expense):
Interest income	6,051	4,307	11,566	8,243
Interest expense	(1,339)	(1,349)	(2,684)	(2,702)
Other, net	(257)	(2,050)	(1,968)	(3,088)
Total other income	4,455	908	6,914	2,453
Income before income taxes	57,265	64,616	116,263	117,518
Income tax provision	6,399	3,037	13,803	8,242
Net income	$ 50,866	$ 61,579	$ 102,460	$ 109,276
Net income per share:
Basic	$ 1.56	$ 1.88	$ 3.14	$ 3.34
Diluted	$ 1.55	$ 1.86	$ 3.12	$ 3.29
Shares used in computing net income per share:
Basic weighted average shares of common stock	32,598	32,775	32,618	32,759
Diluted weighted average shares of common stock	32,771	33,189	32,848	33,237
Product
Revenue:
Total revenue	$ 245,380	$ 265,673	$ 488,798	$ 511,680
Cost of revenue:
Total cost of revenue	134,759	146,741	262,670	289,512
Services
Revenue:
Total revenue	11,132	8,297	20,085	16,310
Cost of revenue:
Total cost of revenue	$ 9,344	$ 7,526	$ 17,753	$ 14,756

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Consolidated Statements of Comprehensive Income
Net income	$ 50,866	$ 61,579	$ 102,460	$ 109,276
Other comprehensive loss:
Foreign currency translation adjustments	(913)	(1,011)	(2,644)	(961)
Amortization of actuarial net gain and other adjustments from pension plan, net of tax	5		10
Total other comprehensive loss	(908)	(1,011)	(2,634)	(961)
Comprehensive income	$ 49,958	$ 60,568	$ 99,826	$ 108,315

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 145,166	$ 167,297
Short-Term Investments	403,143	338,851
Accounts receivable, net	188,080	217,964
Inventories, net	283,090	306,482
Prepaid income taxes	4,107
Prepaid expenses and other current assets	54,741	49,397
Total current assets	1,078,327	1,079,991
Property, plant and equipment, net	52,417	53,971
Operating lease assets	28,918	30,716
Finance lease assets, net	15,989	16,632
Long-term restricted cash	6,651	6,654
Deferred income taxes	55,441	53,428
Other assets	50,662	40,575
Total assets	1,288,405	1,281,967
Current liabilities:
Accounts payable	45,782	54,400
Accrued compensation	16,069	31,445
Warranty	14,502	14,098
Income taxes		6,164
Deferred revenue	148,390	164,677
Current portion of finance lease obligation	1,452	1,511
Other current liabilities	17,984	12,834
Total current liabilities	244,179	285,129
Long-term finance lease obligation	43,004	43,674
Long-term deferred revenue	25,621	46,208
Other long-term liabilities	40,653	42,074
Total liabilities	353,457	417,085
Commitments and contingencies (Note 17)
Stockholders' equity:
Common stock, $0.001 par value, 75,000 shares authorized; 32,617 shares issued and outstanding at June 30, 2024; 32,685 shares issued and outstanding at December 31, 2023	33	33
Additional paid-in capital	542,677	547,189
Retained earnings	396,718	319,506
Accumulated other comprehensive loss	(4,480)	(1,846)
Total stockholders' equity	934,948	864,882
Total liabilities and stockholders' equity	$ 1,288,405	$ 1,281,967

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Jun. 30, 2024	Dec. 31, 2023
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	32,617	32,685
Common stock, shares outstanding	32,617	32,685

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive (Loss)	Total
Balance at Dec. 31, 2022	$ 33	$ 550,299	$ 118,892	$ (1,968)	$ 667,256
Balance (in shares) at Dec. 31, 2022	32,775
Increase (Decrease) in Stockholders' Equity
Net income			47,697		47,697
Foreign currency translation adjustments				50	50
Exercise of stock options (in shares)	2
Exercise of stock options		25			25
Issuance of common stock on restricted stock units, net of shares withheld		(3,907)			(3,907)
Issuance of common stock on restricted stock units, net of shares withheld (in shares)	56
Stock-based compensation expense		3,199			3,199
Repurchase of common stock		(1,924)	(10,575)		(12,499)
Repurchase of common stock (in shares)	(107)
Balance at Mar. 31, 2023	$ 33	547,692	156,014	(1,918)	701,821
Balance (in shares) at Mar. 31, 2023	32,726
Balance at Dec. 31, 2022	$ 33	550,299	118,892	(1,968)	667,256
Balance (in shares) at Dec. 31, 2022	32,775
Increase (Decrease) in Stockholders' Equity
Net income					109,276
Foreign currency translation adjustments					(961)
Balance at Jun. 30, 2023	$ 33	540,120	206,813	(2,929)	744,037
Balance (in shares) at Jun. 30, 2023	32,836
Balance at Mar. 31, 2023	$ 33	547,692	156,014	(1,918)	701,821
Balance (in shares) at Mar. 31, 2023	32,726
Increase (Decrease) in Stockholders' Equity
Net income			61,579		61,579
Foreign currency translation adjustments				(1,011)	(1,011)
Issuance of stock under Employee Stock Purchase Plan		957			957
Issuance of stock under Employee Stock Purchase Plan (in shares)	6
Issuance of common stock on restricted stock units, net of shares withheld		(11,558)			(11,558)
Issuance of common stock on restricted stock units, net of shares withheld (in shares)	199
Stock-based compensation expense		4,749			4,749
Repurchase of common stock		(1,720)	(10,780)		(12,500)
Repurchase of common stock (in shares)	(95)
Balance at Jun. 30, 2023	$ 33	540,120	206,813	(2,929)	744,037
Balance (in shares) at Jun. 30, 2023	32,836
Balance at Dec. 31, 2023	$ 33	547,189	319,506	(1,846)	864,882
Balance (in shares) at Dec. 31, 2023	32,685
Increase (Decrease) in Stockholders' Equity
Net income			51,595		51,595
Foreign currency translation adjustments				(1,731)	(1,731)
Change in pension obligation, net of tax				5	5
Issuance of common stock on restricted stock units, net of shares withheld		(2,699)			(2,699)
Issuance of common stock on restricted stock units, net of shares withheld (in shares)	42
Stock-based compensation expense		4,690			4,690
Repurchase of common stock		(2,201)	(12,798)		(14,999)
Repurchase of common stock (in shares)	(122)
Balance at Mar. 31, 2024	$ 33	546,979	358,303	(3,572)	901,743
Balance (in shares) at Mar. 31, 2024	32,605
Balance at Dec. 31, 2023	$ 33	547,189	319,506	(1,846)	864,882
Balance (in shares) at Dec. 31, 2023	32,685
Increase (Decrease) in Stockholders' Equity
Net income					102,460
Foreign currency translation adjustments					(2,644)
Change in pension obligation, net of tax					10
Balance at Jun. 30, 2024	$ 33	542,677	396,718	(4,480)	934,948
Balance (in shares) at Jun. 30, 2024	32,617
Balance at Mar. 31, 2024	$ 33	546,979	358,303	(3,572)	901,743
Balance (in shares) at Mar. 31, 2024	32,605
Increase (Decrease) in Stockholders' Equity
Net income			50,866		50,866
Foreign currency translation adjustments				(913)	(913)
Change in pension obligation, net of tax				5	5
Issuance of stock under Employee Stock Purchase Plan		1,242			1,242
Issuance of stock under Employee Stock Purchase Plan (in shares)	10
Issuance of common stock on restricted stock units, net of shares withheld		(8,468)			(8,468)
Issuance of common stock on restricted stock units, net of shares withheld (in shares)	143
Stock-based compensation expense		5,469			5,469
Repurchase of common stock		(2,545)	(12,451)		(14,996)
Repurchase of common stock (in shares)	(141)
Balance at Jun. 30, 2024	$ 33	$ 542,677	$ 396,718	$ (4,480)	$ 934,948
Balance (in shares) at Jun. 30, 2024	32,617

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities
Net income	$ 102,460	$ 109,276
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	7,636	6,258
Deferred income taxes	(2,013)	(7,413)
Stock-based compensation expense	10,159	7,948
Provision for doubtful accounts	(459)
Provision for excess and obsolete inventory	2,846	2,494
Accretion of discounts and premiums on marketable securities	(6,623)	(5,753)
Currency loss on foreign denominated transactions	11,505	5,717
Changes in operating assets and liabilities:
Accounts receivable	25,009	8,173
Inventories	12,951	(63,294)
Prepaid expenses and other current assets	(5,849)	(5,095)
Accounts payable and other current liabilities	(18,541)	(18,266)
Deferred revenue	(35,957)	28,075
Income taxes	(8,391)	2,324
Other assets and liabilities	(12,443)	(3,170)
Net cash provided by operating activities	82,290	67,274
Cash flows from investing activities
Expenditures for property, plant and equipment and capitalized software	(3,624)	(5,202)
Purchase of short-term investments	(249,015)	(188,943)
Maturities of short-term investments	191,345	120,907
Net cash used in investing activities	(61,294)	(73,238)
Cash flows from financing activities
Net settlement on restricted stock grants	(11,167)	(15,465)
Repurchase of common stock	(29,995)	(24,999)
Proceeds from Employee Stock Purchase Plan purchases	1,242	957
Principal payments on finance lease obligation	(736)	(598)
Proceeds from exercise of stock options		25
Net cash used in financing activities	(40,656)	(40,080)
Effect of exchange rate changes on cash and cash equivalents	(2,474)	(1,147)
Net decrease in cash, cash equivalents and restricted cash	(22,134)	(47,191)
Cash, cash equivalents and restricted cash at beginning of period	173,951	186,347
Cash, cash equivalents and restricted cash at end of period	$ 151,817	$ 139,156

Nature of Business

Nature of Business	6 Months Ended
Nature of Business	Jun. 30, 2024
Nature of Business
Nature of Business	Note 1. Nature of Business Axcelis Technologies, Inc. (“Axcelis” or the “Company”) was incorporated in Delaware in 1995 and is a producer of ion implantation equipment used in the fabrication of semiconductor chips in the United States, Europe and Asia. In addition, we provide extensive worldwide aftermarket service and support, including spare parts, equipment upgrades, used equipment, and maintenance services to the semiconductor industry. The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments which are of a normal recurring nature and considered necessary for a fair presentation of these financial statements have been included. Operating results for the interim periods presented are not necessarily indicative of the results that may be expected for other interim periods or for the year as a whole. The balance sheet at December 31, 2023 has been derived from the audited consolidated financial statements at that date but does not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. As of June 30, 2024, there have been no material changes in the Company’s significant accounting policies, other than with respect to the Company’s accounting policy for derivative financial instruments, which it had not held in prior periods, as described in Note 2 below. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission (the “SEC”) on February 23, 2024, as amended by Amendment No. 1 thereto, filed with the SEC on February 28, 2024 (as so amended, the “2023 Form 10-K”).

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
Summary of Significant Accounting Policies	Jun. 30, 2024
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	Note 2. Significant Accounting Policies Derivative instruments We do not offset fair value amounts of derivative instruments. We do not use derivative instruments for speculative purposes.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
Stock-Based Compensation	Jun. 30, 2024
Stock-Based Compensation
Stock-Based Compensation	Note 3. Stock-Based Compensation We maintain the Axcelis Technologies, Inc. 2012 Equity Incentive Plan, as amended (the “2012 Equity Plan”), which became effective on May 2, 2012, and permits the issuance of options, restricted stock, restricted stock units (“RSUs”) and performance awards to selected employees, directors, and consultants of the Company. The 2012 Equity Plan is more fully described in Note 13 to the consolidated financial statements in our 2023 Form 10-K. We recognized stock-based compensation expense of $5.5 million and $4.7 million for the three-month periods ended June 30, 2024 and 2023, respectively. We recognized stock-based compensation expense of $10.2 million and $7.9 million for the six-month periods ended June 30, 2024 and 2023, respectively. These amounts include compensation expense related to RSUs, non-qualified stock options, and stock to be issued to participants under the 2020 Employee Stock Purchase Plan (the “2020 ESPP”). In the three-month periods ended June 30, 2024 and 2023, respectively, we issued 0.2 million shares of common stock upon vesting of RSUs granted under the 2012 Equity Plan and purchases under the 2020 ESPP. In the three-month period ended June 30, 2024 and 2023, we received proceeds of $1.2 million and $1.0 million, respectively, from purchases under the 2020 ESPP. In the six-month period ended June 30, 2024 and 2023, we issued 0.2 million and 0.3 million shares of common stock, respectively, upon vesting of RSUs granted under the 2012 Equity Plan and purchases under the 2020 ESPP. In the six-month period ended June 30, 2024 and 2023, we received proceeds of $1.2 million and $1.0 million, respectively, in connection with purchases under the 2020 ESPP.

Leases

Leases	6 Months Ended
Leases	Jun. 30, 2024
Leases
Leases	Note 4. 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 for the use of a specific physical space or a specific physical item. We recognize operating lease obligations under Accounting Standards Codification Topic 842, Leases options to renew one June 30, December 31, Leases Classification 2024 2023 Assets (in thousands) Operating leases Operating lease assets $ 28,918 $ 30,716 Finance lease Finance lease assets* 15,989 16,632 Total leased assets $ 44,907 $ 47,348 Liabilities Current Operating Other current liabilities $ 4,637 $ 4,978 Finance Current portion of finance lease obligation 1,452 1,511 Non-current Operating Other long-term liabilities 24,329 25,724 Finance Finance lease obligation 43,004 43,674 Total lease liabilities $ 73,422 $ 75,887 Finance lease assets are recorded net of accumulated depreciation of $46.9 million and include $0.6 million of prepaid financing costs as of June 30, 2024. 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. Three months ended Six months ended June 30, June 30, Lease cost Classification 2024 2023 2024 2023 Operating lease cost (in thousands) Product / services Cost of revenue $ 1,694 $ 1,821 $ 3,522 $ 3,287 Research and development Operating expenses 203 137 326 243 Sales and marketing* Operating expenses 451 417 902 813 General and administrative* Operating expenses 337 239 532 515 Total operating lease cost $ 2,685 $ 2,614 $ 5,282 $ 4,858 Finance lease cost Depreciation of leased assets Cost of revenue, Research and development, Sales and marketing and General and administrative $ 321 $ 318 $ 643 $ 637 Interest on lease liabilities Interest expense 1,187 1,223 2,384 2,454 Total finance lease cost $ 1,508 $ 1,541 $ 3,027 $ 3,091 Total lease cost $ 4,193 $ 4,155 $ 8,309 $ 7,949 * Product / services, sales and marketing and general and administrative expense also includes short-term lease and variable lease costs of approximately $0.7 million and $1.3 million for the three and six months ended June 30, 2024, respectively, and includes short-term lease and variable lease costs of approximately $0.5 million and $1.0 million for the three and six months ended June 30, 2023, respectively. one Finance Operating Total Maturity of Lease Liabilities Leases Leases Leases (in thousands) 2024 $ 3,132 $ 3,740 $ 6,872 2025 5,930 6,113 12,043 2026 6,008 4,448 10,456 2027 6,128 2,863 8,991 2028 6,251 1,959 8,210 Thereafter 55,336 23,205 78,541 Total lease payments $ 82,785 $ 42,328 $ 125,113 Less interest portion* (38,329) (13,362) (51,691) Finance lease and operating lease obligations $ 44,456 $ 28,966 $ 73,422 * 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. June 30, Lease term and discount rate 2024 Weighted-average remaining lease term (years): Operating leases 11.5 Finance leases 12.6 Weighted-average discount rate: Operating leases 5.5% Finance leases 10.5% Six months ended June 30, Cash paid for amounts included in the measurement of lease liabilities 2024 2023 (in thousands) Operating cash outflows from operating leases $ 5,282 $ 4,858 Operating cash outflows from finance leases 2,384 2,454 Financing cash outflows from finance leases 736 598 Operating lease assets obtained in exchange for operating lease liabilities 825 23,289 Finance lease assets obtained in exchange for new finance lease liabilities — —

Revenue

Revenue	6 Months Ended
Revenue	Jun. 30, 2024
Revenue
Revenue	Note 5. Revenue Three months ended Six months ended June 30, June 30, 2024 2023 2024 2023 (in thousands) Systems $ 198,645 $ 215,174 $ 394,076 $ 410,372 Aftermarket 57,867 58,796 114,807 117,618 Total Revenue $ 256,512 $ 273,970 $ 508,883 $ 527,990 Three months ended Six months ended June 30, June 30, 2024 2023 2024 2023 (in thousands) North America $ 34,373 $ 37,918 $ 79,876 $ 83,084 Asia Pacific 196,159 205,941 384,376 397,044 Europe 25,980 30,111 44,631 47,862 Total Revenue $ 256,512 $ 273,970 $ 508,883 $ 527,990 June 30, December 31, 2024 2023 (in thousands) Contract liabilities $ 174,011 $ 210,885 Three months ended Six months ended June 30, June 30, 2024 2023 2024 2023 (in thousands) Balance, beginning of the period $ 208,418 $ 201,725 $ 210,885 $ 154,777 Deferral of revenue* 19,625 34,977 55,227 107,556 Recognition of deferred revenue (54,032) (54,162) (92,101) (79,793) Balance, end of the period $ 174,011 $ 182,540 $ 174,011 $ 182,540 * Amount is net of a reclassification of

Receivables and Allowances for

Receivables and Allowances for Credit Losses	6 Months Ended
Receivables and Allowances for Credit Losses	Jun. 30, 2024
Receivables and Allowances for Credit Losses
Receivables and Allowances for Credit Losses	Note 6. Receivables and Allowances for Credit Losses All trade receivables are reported on the consolidated balance sheets at their amortized cost adjusted for any write-offs and net of allowances for credit losses. We maintain an allowance for credit losses, which represents an estimate of expected losses over the remaining contractual life of our receivables, considering current market conditions and estimates for supportable forecasts when appropriate. The estimate is a result of our ongoing assessments and evaluations of collectability, historical loss experience, and future expectations in estimating credit losses in our receivable portfolio. We use historical loss experience rates and apply them to a related aging analysis while also considering customer and/or economic risk where appropriate. Determination of the proper amount of allowances requires management to exercise judgment about the timing, frequency and severity of credit losses that could materially affect the provision for credit losses and, as a result, net earnings. The allowance takes into consideration numerous quantitative and qualitative factors that include receivable type, historical loss experience, loss migration, delinquency trends, collection experience, current economic conditions, trade restrictions, estimates for supportable forecasts, when appropriate, and credit risk characteristics. We evaluate the credit risk of the customer when extending credit based on a combination of financial and qualitative factors that may affect our customers’ ability to pay. These factors may include the customer’s financial condition, past payment experience, and credit bureau report, as well as the value of the underlying collateral. Management performs detailed reviews of our receivables on a quarterly basis to assess the adequacy of the allowances and to determine if any impairment has occurred. Amounts determined to be uncollectable are charged directly against the allowances, while amounts recovered on previously written-off accounts increase the allowances. Changes to the allowances for credit losses are maintained through adjustments to the provision for credit losses, which are charged to current period earnings. We did not incur any credit losses or recoveries for the three month period ended June 30, 2024. We recorded $0.5 million of recovery of bad debt expense for the six-month period ended June 30, 2024. We did not have any allowance or incur any credit losses or recoveries for the six-month period ended June 30, 2023. As of both June 30, 2024 and 2023, we had no provision for credit losses.

Computation of Net Earnings per

Computation of Net Earnings per Share	6 Months Ended
Computation of Net Earnings per Share	Jun. 30, 2024
Computation of Net Earnings per Share
Computation of Net Earnings per Share	Note 7. Computation of Net Earnings per Share Basic earnings per share is computed by dividing income available to common stockholders (the numerator) by the weighted-average number of shares of common stock outstanding (the denominator) for the period. The computation of diluted earnings per share is similar to basic earnings per share, except that the denominator is increased by the number of additional shares of common stock that would have been outstanding if the potentially dilutive shares of common stock issuable on exercise of stock options and vesting of RSUs had been issued, calculated using the treasury stock method. The components of net earnings per share are as follows: Three months ended Six months ended June 30, June 30, 2024 2023 2024 2023 (in thousands, except per share amounts) Net income available to common stockholders $ 50,866 $ 61,579 $ 102,460 $ 109,276 Weighted average shares of common stock outstanding used in computing basic income per share 32,598 32,775 32,618 32,759 Incremental options and RSUs 173 414 230 478 Weighted average shares of common stock used in computing diluted net income per share 32,771 33,189 32,848 33,237 Net income per share Basic $ 1.56 $ 1.88 $ 3.14 $ 3.34 Diluted $ 1.55 $ 1.86 $ 3.12 $ 3.29 Diluted weighted average shares of common stock outstanding does not include 22,983 and 770 common equivalent shares issuable with respect to outstanding equity awards for the three-month periods ended June 30, 2024 and 2023, respectively, or 20,639 and 387 common equivalent shares issuable with respect to outstanding equity awards for the six-month periods ended June 30, 2024 and 2023, respectively, as their effect would have been anti-dilutive.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	6 Months Ended
Accumulated Other Comprehensive Loss	Jun. 30, 2024
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Loss	Note 8. Accumulated Other Comprehensive Loss The following table presents the changes in accumulated other comprehensive loss, net of tax, by component, for the six months ended June 30, 2024: Foreign Defined benefit currency pension plan Total (in thousands) Balance at December 31, 2023 $ (1,956) $ 110 $ (1,846) Other comprehensive loss and pension reclassification (2,644) 10 (2,634) Balance at June 30, 2024 $ (4,600) $ 120 $ (4,480)

Cash, cash equivalents and rest

Cash, cash equivalents and restricted cash	6 Months Ended
Cash, cash equivalents and restricted cash	Jun. 30, 2024
Cash, cash equivalents and restricted cash
Cash, cash equivalents and restricted cash	Note 9. Cash, cash equivalents and restricted cash The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets to the total of the amounts shown in the statement of cash flows: June 30, December 31, 2024 2023 (in thousands) Cash and cash equivalents $ 145,166 $ 167,297 Long-term restricted cash 6,651 6,654 Total cash, cash equivalents and restricted cash $ 151,817 $ 173,951 As of June 30, 2024, we had $6.7 million in restricted cash representing the total of (i) a $5.9 million cash collateral relating to our lease for our headquarters in Beverly, Massachusetts, (ii) a $0.7 million letter of credit relating to workers’ compensation insurance and (iii) a $0.1 million deposit relating to customs activity. See Note 13 for further discussion on the $5.9 million cash collateral.

Inventories, net

Inventories, net	6 Months Ended
Inventories, net	Jun. 30, 2024
Inventories, net
Inventories, net	Note 10. Inventories, net The components of inventories are as follows: June 30, December 31, 2024 2023 (in thousands) Raw materials $ 220,910 $ 231,200 Work in process 40,481 45,373 Finished goods (completed systems) 21,699 29,909 Inventories, net $ 283,090 $ 306,482 When recorded, inventory reserves reduce the carrying value of inventories to their net realizable value. We establish inventory reserves when conditions exist that indicate inventory may be in excess of anticipated demand or is obsolete based upon assumptions about future demand for our products or market conditions. We regularly evaluate the ability to realize the value of inventories based on a combination of factors including the following: forecasted sales or usage, estimated product end of life dates, estimated current and future market value and new product introductions. Purchasing and usage alternatives are also explored to mitigate inventory exposure.

Product Warranty

Product Warranty	6 Months Ended
Product Warranty	Jun. 30, 2024
Product Warranty
Product Warranty	Note 11. 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, if applicable, defer the portion of systems revenue attributable to non-standard warranty. Costs for non-standard warranty are expensed as incurred. Factors that affect our warranty liability include the number of installed units, historical and anticipated product failure rates, material usage and service labor costs. We periodically assess the adequacy of our recorded liability and adjust the amount as necessary. The changes in our standard product warranty liability are as follows: Six months ended June 30, 2024 2023 (in thousands) Balance at January 1 (beginning of year) $ 16,757 $ 10,487 Warranties issued during the period 5,755 5,616 Settlements made during the period (5,653) (4,834) Changes in estimate of liability for pre-existing warranties during the period (444) 1,552 Balance at June 30 (end of period) $ 16,415 $ 12,821 Amount classified as current $ 14,502 $ 10,867 Amount classified as long-term (within other long-term liabilities) 1,913 1,954 Total warranty liability $ 16,415 $ 12,821

Fair Value Measurements

Fair Value Measurements	6 Months Ended
Fair Value Measurements	Jun. 30, 2024
Fair Value Measurements
Fair Value Measurements	Note 12. Fair Value Measurements Fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. (a) Fair Value Hierarchy The accounting guidance for fair value measurement requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is as follows: Level 1 Level 2 Level 3 (b) Fair Value Measurements Our money market funds and short-term investments with initial maturities of three months or less are included in cash and cash equivalents in the consolidated balance sheets. Other investments that have a maturity of greater than three months but less than one year are included within short-term investments in the consolidated balance sheets. The following table sets forth our assets by level within the fair value hierarchy: June 30, 2024 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) $ 104,958 $ — $ — $ 104,958 Short-term investments (U.S. Government Securities and Agency Investments) 402,820 — — 402,820 Mark-to-market adjustment on forward exchange contracts — (323) — (323) Total $ 507,778 $ (323) $ — $ 507,455 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 (c) Other Financial Instruments The carrying amounts reflected in the consolidated balance sheets for accounts receivable, prepaid expenses, forward currency exchange contracts and other current assets and non-current assets, restricted cash, accounts payable and accrued expenses approximate fair value due to their short-term maturities. (d) Forward Currency Exchange Contracts Beginning in February 2024, we entered into forward currency exchange contracts to minimize the impact of foreign currency fluctuations on our earnings and cash flows. These contracts have month-to-month settlement dates. Any gains or losses on these contracts are reported within Other, net within our Consolidated Statement of Operations. Any open contracts at period end that have settlement dates within one month after the reported period end and any mark-to-market valuation adjustments related to these open contracts are recorded within the current asset or current liability account and any unrealized gain or loss recognized is recorded within Other, net within our Consolidated Statement of Operations. These contracts are measured at fair value using observable market inputs such as forward currency exchange rates and our counterparties’ credit risks. Based on these inputs, the derivative instruments are classified within Level 2 of the valuation hierarchy. At June 30, 2024, the recognized unrealized loss on these forward exchange contracts was approximately $323 thousand. Based on our continued ability to trade and enter into forward contracts, we consider the markets for our fair value instruments to be active. We evaluated the credit risk associated with the counterparties to these derivative instruments and determined that as of June 30, 2024, such credit risks have not had an adverse impact on the fair value of these instruments.

Financing Arrangements

Financing Arrangements	6 Months Ended
Financing Arrangements	Jun. 30, 2024
Financing Arrangements
Financing Arrangements	Note 13. Financing Arrangements On January 30, 2015, we sold our corporate headquarters facility in Beverly, Massachusetts for $48.9 million. As part of the sale, we also entered into a 22-year lease agreement of our headquarters facility. This sale-leaseback is accounted for as a financing lease under generally accepted accounting principles and, as such, we have recorded a financing obligation of $44.5 million as of June 30, 2024. The associated lease payments include both an interest component and payment of principal, with the remaining liability being extinguished at the end of the original lease term. As of June 30, 2024, we had a security deposit of $5.9 million related to this lease in the form of a cash collateralized letter of credit issued with UBS Bank USA, which is classified as long-term restricted cash on our balance sheet at June 30, 2024.

Income Taxes

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2024
Income Taxes
Income Taxes	Note 14. Income Taxes Income tax expense was $6.4 million for the three months ended June 30, 2024, compared to $3.0 million for the three months ended June 30, 2023. The $3.4 million increase was primarily due to a decrease in stock compensation deduction. Income tax expense was $13.8 million for the six months ended June 30, 2024, compared to $8.2 million for the six months ended June 30, 2023. The increase was primarily due to a decrease in stock compensation deduction. The effective tax rate for the three and six months ended June 30, 2024 was less than the U.S. statutory rate of 21% due to a forecasted Foreign Derived Intangible Income deduction, Federal research and development tax credits and a favorable discrete item related to equity compensation that reduces the annual tax rate. The deferred income taxes of $55.4 million and $53.4 million as of June 30, 2024 and December 31, 2023, respectively, reflect the net tax effect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, as well as the tax effect of carryforwards. As of June 30, 2024, we have recorded a $11.3 million valuation allowance in the U.S. against certain tax credits due to the uncertainty of their realization. Realization of our net deferred tax assets is dependent on future taxable income. We believe it is more likely than not that such assets will be realized; however, ultimate realization could be impacted by market conditions and other variables not known or anticipated at this time.

Concentration of Risk

Concentration of Risk	6 Months Ended
Concentration of Risk	Jun. 30, 2024
Concentration of Risk
Concentration of Risk	Note 15. Concentration of Risk For the three months ended June 30, 2024, one customer accounted for 11.5% of total revenue. For the three months ended June 30, 2023, no individual customer accounted for greater than ten percent of total revenue. For the six months ended June 30, 2024, no individual customer accounted for greater than ten percent of total revenue. For the six months ended June 30, 2023, two customers accounted for 11.6% and 11.1% of total revenue, respectively. At June 30, 2024, one customer accounted for 11.3% of accounts receivable. At December 31, 2023, one customer accounted for 12.2% of accounts receivable.

Share Repurchase

Share Repurchase	6 Months Ended
Share Repurchase	Jun. 30, 2024
Stockholders' Equity
Share Repurchase	Note 16. Share Repurchase In February 2022, our Board of Directors approved stock repurchases of up to $100 million of our common stock. In August 2023, our Board of Directors approved additional funding of $200 million for our stock repurchase program, to be available on full utilization of the $100 million repurchase funding approved in February 2022. During the six months ended June 30, 2024, we repurchased 0.3 million shares at an average cost of $114.07 per share. The timing and actual number of any additional shares to be repurchased under this program will depend on various factors including price, corporate and regulatory requirements, alternative investment opportunities and other market conditions. Repurchased shares are accounted for when the transaction is settled and returned to the status of authorized but unissued shares. Accordingly, on our balance sheet, the repurchase price is deducted from common stock par value and from additional paid-in capital for the excess over par value. If additional paid-in capital has been exhausted, the excess over par value is deducted from retained earnings. Direct costs incurred to acquire the shares are included in the total cost of the shares.

Contingencies

Contingencies	6 Months Ended
Contingencies	Jun. 30, 2024
Contingencies
Contingencies	Note 17. Contingencies (a) Litigation We are from time to time a party to litigation that arises in the normal course of our business operations. We are not presently a party to any litigation that we believe might have a material adverse effect on our business operations. (b) Indemnifications Our system sales agreements typically include provisions under which we agree to take certain actions, provide certain remedies and defend our customers against third-party claims of intellectual property infringement under specified conditions and indemnify customers against any damage and costs awarded in connection with such claims. We have not incurred any material costs as a result of such indemnifications and have not accrued any liabilities related to such obligations in the accompanying consolidated financial statements.

Recent Accounting Guidance

Recent Accounting Guidance	6 Months Ended
Recent Accounting Guidance	Jun. 30, 2024
Summary of Significant Accounting Policies
Recent Accounting Guidance	Note 18. 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. We are currently evaluating the impact of ASU 2023-07 on our 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”). 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. We are currently evaluating the impact of ASU 2023-09 on our future consolidated financial statements and related disclosures.

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Jun. 30, 2024
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

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 30, 2024
Summary of Significant Accounting Policies
Derivative instruments	Derivative instruments We do not offset fair value amounts of derivative instruments. We do not use derivative instruments for speculative purposes.

Leases (Tables)

Leases (Tables)	6 Months Ended
Leases (Tables)	Jun. 30, 2024
Leases
Schedule of operating and finance lease right-of-use assets and related lease obligations	June 30, December 31, Leases Classification 2024 2023 Assets (in thousands) Operating leases Operating lease assets $ 28,918 $ 30,716 Finance lease Finance lease assets* 15,989 16,632 Total leased assets $ 44,907 $ 47,348 Liabilities Current Operating Other current liabilities $ 4,637 $ 4,978 Finance Current portion of finance lease obligation 1,452 1,511 Non-current Operating Other long-term liabilities 24,329 25,724 Finance Finance lease obligation 43,004 43,674 Total lease liabilities $ 73,422 $ 75,887 *Finance lease assets are recorded net of accumulated depreciation of $46.9 million and include $0.6 million of prepaid financing costs as of June 30, 2024. 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.
Schedule of lease costs	Three months ended Six months ended June 30, June 30, Lease cost Classification 2024 2023 2024 2023 Operating lease cost (in thousands) Product / services* Cost of revenue $ 1,694 $ 1,821 $ 3,522 $ 3,287 Research and development Operating expenses 203 137 326 243 Sales and marketing* Operating expenses 451 417 902 813 General and administrative* Operating expenses 337 239 532 515 Total operating lease cost $ 2,685 $ 2,614 $ 5,282 $ 4,858 Finance lease cost Depreciation of leased assets Cost of revenue, Research and development, Sales and marketing and General and administrative $ 321 $ 318 $ 643 $ 637 Interest on lease liabilities Interest expense 1,187 1,223 2,384 2,454 Total finance lease cost $ 1,508 $ 1,541 $ 3,027 $ 3,091 Total lease cost $ 4,193 $ 4,155 $ 8,309 $ 7,949 * Product / services, sales and marketing and general and administrative expense also includes short-term lease and variable lease costs of approximately $0.7 million and $1.3 million for the three and six months ended June 30, 2024, respectively, and includes short-term lease and variable lease costs of approximately $0.5 million and $1.0 million for the three and six months ended June 30, 2023, respectively.
Schedule of future minimum operating and finance leases	Finance Operating Total Maturity of Lease Liabilities Leases Leases Leases (in thousands) 2024 $ 3,132 $ 3,740 $ 6,872 2025 5,930 6,113 12,043 2026 6,008 4,448 10,456 2027 6,128 2,863 8,991 2028 6,251 1,959 8,210 Thereafter 55,336 23,205 78,541 Total lease payments $ 82,785 $ 42,328 $ 125,113 Less interest portion* (38,329) (13,362) (51,691) Finance lease and operating lease obligations $ 44,456 $ 28,966 $ 73,422 * Finance lease interest calculated using the implied interest rate; operating lease interest calculated using estimated corporate borrowing rate.
Schedule of weighted-average remaining lease term and discount rates	June 30, Lease term and discount rate 2024 Weighted-average remaining lease term (years): Operating leases 11.5 Finance leases 12.6 Weighted-average discount rate: Operating leases 5.5% Finance leases 10.5%
Schedule of cash outflows by lease type	Six months ended June 30, Cash paid for amounts included in the measurement of lease liabilities 2024 2023 (in thousands) Operating cash outflows from operating leases $ 5,282 $ 4,858 Operating cash outflows from finance leases 2,384 2,454 Financing cash outflows from finance leases 736 598 Operating lease assets obtained in exchange for operating lease liabilities 825 23,289 Finance lease assets obtained in exchange for new finance lease liabilities — —

Revenue (Tables)

Revenue (Tables)	6 Months Ended
Revenue (Tables)	Jun. 30, 2024
Revenue
Schedule of revenue by discipline	Three months ended Six months ended June 30, June 30, 2024 2023 2024 2023 (in thousands) Systems $ 198,645 $ 215,174 $ 394,076 $ 410,372 Aftermarket 57,867 58,796 114,807 117,618 Total Revenue $ 256,512 $ 273,970 $ 508,883 $ 527,990
Schedule of revenue by geographic markets	Three months ended Six months ended June 30, June 30, 2024 2023 2024 2023 (in thousands) North America $ 34,373 $ 37,918 $ 79,876 $ 83,084 Asia Pacific 196,159 205,941 384,376 397,044 Europe 25,980 30,111 44,631 47,862 Total Revenue $ 256,512 $ 273,970 $ 508,883 $ 527,990
Schedule of Contract liabilities

Computation of Net Earnings p_2

Computation of Net Earnings per Share (Tables)	6 Months Ended
Computation of Net Earnings per Share (Tables)	Jun. 30, 2024
Computation of Net Earnings per Share
Schedule of components of net income per share	Three months ended Six months ended June 30, June 30, 2024 2023 2024 2023 (in thousands, except per share amounts) Net income available to common stockholders $ 50,866 $ 61,579 $ 102,460 $ 109,276 Weighted average shares of common stock outstanding used in computing basic income per share 32,598 32,775 32,618 32,759 Incremental options and RSUs 173 414 230 478 Weighted average shares of common stock used in computing diluted net income per share 32,771 33,189 32,848 33,237 Net income per share Basic $ 1.56 $ 1.88 $ 3.14 $ 3.34 Diluted $ 1.55 $ 1.86 $ 3.12 $ 3.29

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	6 Months Ended
Accumulated Other Comprehensive Loss (Tables)	Jun. 30, 2024
Accumulated Other Comprehensive Loss
Schedule of changes in accumulated other comprehensive loss, net of tax	Foreign Defined benefit currency pension plan Total (in thousands) Balance at December 31, 2023 $ (1,956) $ 110 $ (1,846) Other comprehensive loss and pension reclassification (2,644) 10 (2,634) Balance at June 30, 2024 $ (4,600) $ 120 $ (4,480)

Cash, cash equivalents and re_2

Cash, cash equivalents and restricted cash (Tables)	6 Months Ended
Cash, cash equivalents and restricted cash (Tables)	Jun. 30, 2024
Cash, cash equivalents and restricted cash
Schedule of reconciliation of cash, cash equivalents and restricted cash	June 30, December 31, 2024 2023 (in thousands) Cash and cash equivalents $ 145,166 $ 167,297 Long-term restricted cash 6,651 6,654 Total cash, cash equivalents and restricted cash $ 151,817 $ 173,951

Inventories, net (Tables)

Inventories, net (Tables)	6 Months Ended
Inventories, net (Tables)	Jun. 30, 2024
Inventories, net
Schedule of components of inventories	June 30, December 31, 2024 2023 (in thousands) Raw materials $ 220,910 $ 231,200 Work in process 40,481 45,373 Finished goods (completed systems) 21,699 29,909 Inventories, net $ 283,090 $ 306,482

Product Warranty (Tables)

Product Warranty (Tables)	6 Months Ended
Product Warranty (Tables)	Jun. 30, 2024
Product Warranty
Schedule of product warranty liability	Six months ended June 30, 2024 2023 (in thousands) Balance at January 1 (beginning of year) $ 16,757 $ 10,487 Warranties issued during the period 5,755 5,616 Settlements made during the period (5,653) (4,834) Changes in estimate of liability for pre-existing warranties during the period (444) 1,552 Balance at June 30 (end of period) $ 16,415 $ 12,821 Amount classified as current $ 14,502 $ 10,867 Amount classified as long-term (within other long-term liabilities) 1,913 1,954 Total warranty liability $ 16,415 $ 12,821

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
Fair Value Measurements (Tables)	Jun. 30, 2024
Fair Value Measurements
Schedule of Company's assets and liabilities by level within the fair value hierarchy	June 30, 2024 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) $ 104,958 $ — $ — $ 104,958 Short-term investments (U.S. Government Securities and Agency Investments) 402,820 — — 402,820 Mark-to-market adjustment on forward exchange contracts — (323) — (323) Total $ 507,778 $ (323) $ — $ 507,455 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

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2024 USD ($)	Jun. 30, 2024 USD ($)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Foreign exchange gains (losses) realized	$ 2,300	$ 3,800
Forward exchange contracts
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Notional value of open forward contracts	$ 111,000	111,000
Unrealized gain on forward exchange contracts		$ (323)

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Stock-Based Compensation
Stock-based compensation expense	$ 5,500	$ 4,700		$ 10,200	$ 7,900
Proceeds from Employee Stock Purchase Plan purchases				1,242	957
Common Stock
Stock-Based Compensation
Exercise of stock options (in shares)			2
Common Stock \| Employee Stock Purchase Plan
Stock-Based Compensation
Proceeds from Employee Stock Purchase Plan purchases	$ 1,200	$ 1,000		$ 1,200	$ 1,000
Common Stock \| Restricted Stock Units
Stock-Based Compensation
Exercise of stock options (in shares)	200	200		200	300

Leases (Details)

Leases (Details)	6 Months Ended
Leases (Details)	Jun. 30, 2024
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	Jun. 30, 2024	Dec. 31, 2023
Leases
Operating lease assets	$ 28,918	$ 30,716
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Operating lease assets	Operating lease assets
Finance lease assets	$ 15,989	$ 16,632
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Finance lease assets	Finance lease assets
Total leased assets	$ 44,907	$ 47,348
Operating liabilities current	$ 4,637	$ 4,978
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Other Liabilities, Current	Other Liabilities, Current
Finance liabilities current	$ 1,452	$ 1,511
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Finance liabilities current	Finance liabilities current
Operating liabilities noncurrent	$ 24,329	$ 25,724
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other Liabilities, Noncurrent	Other Liabilities, Noncurrent
Finance liabilities noncurrent	$ 43,004	$ 43,674
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Finance liabilities noncurrent	Finance liabilities noncurrent
Total lease liabilities	$ 73,422	$ 75,887
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Other Liabilities, Current, Other Liabilities, Noncurrent	Other Liabilities, Current, Other Liabilities, Noncurrent
Finance lease, accumulated depreciation	$ 46,900	$ 46,400
Prepaid financing costs	$ 600	$ 600

Leases - Lease Cost (Details)

Leases - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Leases - Lease Cost (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Lease cost
Total operating lease cost	$ 2,685	$ 2,614	$ 5,282	$ 4,858
Depreciation of leased assets	321	318	643	637
Interest on lease liabilities	1,187	1,223	2,384	2,454
Total finance lease cost	1,508	1,541	3,027	3,091
Total lease cost	4,193	4,155	8,309	7,949
Short-term lease and variable lease costs	700	500	1,300	1,000
Product / services*
Lease cost
Total operating lease cost	1,694	1,821	3,522	3,287
Research and development
Lease cost
Total operating lease cost	203	137	326	243
Sales and marketing*
Lease cost
Total operating lease cost	451	417	902	813
General and administrative*
Lease cost
Total operating lease cost	$ 337	$ 239	$ 532	$ 515

Leases - Future Minimum Cash Ou

Leases - Future Minimum Cash Outflow and Weighted-average Remaining Lease Term and Discount Rate (Details) $ in Thousands	Jun. 30, 2024 USD ($) ft²	Dec. 31, 2023 USD ($)
Future minimum lease payments finance lease
2024	$ 3,132
2025	5,930
2026	6,008
2027	6,128
2028	6,251
Thereafter	55,336
Total lease payments	82,785
Less interest portion	(38,329)
Finance lease obligations	44,456
Future minimum lease payments operating lease
2024	3,740
2025	6,113
2026	4,448
2027	2,863
2028	1,959
Thereafter	23,205
Total lease payments	42,328
Less interest portion	(13,362)
Operating lease obligations	28,966
Future minimum lease payments finance and operating lease
2024	6,872
2025	12,043
2026	10,456
2027	8,991
2028	8,210
Thereafter	78,541
Total lease payments	125,113
Less interest portion	(51,691)
Total lease liabilities	73,422	$ 75,887
Lease term and discount rate
Right of use asset	28,918	30,716
Prepaid rent	600	600
Operating liabilities noncurrent	$ 24,329	$ 25,724
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)	12 years 7 months 6 days
Operating leases - Weighted-average discount rate	5.50%
Finance leases - Weighted-average discount rate	10.50%
Beverly Property Owner LLC
Lease term and discount rate
Area of Property \| ft²	101,800
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	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Leases
Operating cash outflows from operating leases	$ 5,282	$ 4,858
Operating cash outflows from finance leases	2,384	2,454
Financing cash outflows from finance leases	736	598
Operating lease assets obtained in exchange for operating lease liabilities	$ 825	$ 23,289

Revenue - Revenue by discipline

Revenue - Revenue by discipline & geographical areas (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Disaggregation of Revenue
Total Revenue	$ 256,512	$ 273,970	$ 508,883	$ 527,990
North America
Disaggregation of Revenue
Total Revenue	34,373	37,918	79,876	83,084
Asia Pacific
Disaggregation of Revenue
Total Revenue	196,159	205,941	384,376	397,044
Europe
Disaggregation of Revenue
Total Revenue	25,980	30,111	44,631	47,862
Systems
Disaggregation of Revenue
Total Revenue	198,645	215,174	394,076	410,372
Aftermarket
Disaggregation of Revenue
Total Revenue	$ 57,867	$ 58,796	$ 114,807	$ 117,618

Revenue - Contract liabilities

Revenue - Contract liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024	Dec. 31, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Revenue
Contract liabilities	$ 174,011	$ 208,418	$ 210,885	$ 182,540	$ 201,725	$ 154,777

Revenue - Deferred revenue (Det

Revenue - Deferred revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenue
Balance, beginning of the period	$ 208,418	$ 201,725	$ 210,885	$ 154,777
Deferral of revenue	19,625	34,977	55,227	107,556
Recognition of deferred revenue	(54,032)	(54,162)	(92,101)	(79,793)
Balance, end of the period	174,011	$ 182,540	174,011	$ 182,540
Reclassification from deferred revenue to refund liability	$ 4,700		$ 4,700

Revenue (Details)

Revenue (Details) - USD ($) $ in Thousands	6 Months Ended
Revenue (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024	Dec. 31, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Disaggregation of Revenue
Deferred revenue	$ 174,011	$ 208,418	$ 210,885	$ 182,540	$ 201,725	$ 154,777
Short-term deferred revenue	148,390		164,677
Long-term deferred revenue	$ 25,621		$ 46,208
Systems
Disaggregation of Revenue
Payment upon shipment of the system, as a percent	90%
Payment upon acceptance, as a percent	10%
Systems \| Minimum
Disaggregation of Revenue
Pre-shipment deposit, as a percent	20%
Systems \| Maximum
Disaggregation of Revenue
Pre-shipment deposit, as a percent	60%
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

Receivables and Allowances fo_2

Receivables and Allowances for Credit Losses - Trade Receivables (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2024	Jun. 30, 2023
Receivables and Allowances for Credit Losses
Recoveries	$ 0	$ 500	$ 0
Charge-offs	0		0
Provision for credit losses	$ 0	$ 0	$ 0

Computation of Net Earnings p_3

Computation of Net Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Computation of Net Earnings per Share
Net income available to common stockholders	$ 50,866	$ 51,595	$ 61,579	$ 47,697	$ 102,460	$ 109,276
Weighted average shares of common stock outstanding used in computing basic income per share	32,598		32,775		32,618	32,759
Incremental options and RSUs	173		414		230	478
Weighted average shares of common stock used in computing diluted net income per share	32,771		33,189		32,848	33,237
Net income per share
Basic	$ 1.56		$ 1.88		$ 3.14	$ 3.34
Diluted	$ 1.55		$ 1.86		$ 3.12	$ 3.29
Anti-dilutive common equivalent shares excluded from calculation	22,983		770		20,639	387

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Changes in accumulated other comprehensive (loss) income, net of tax
Balance at beginning of period	$ (1,846)
Other comprehensive loss and pension reclassification	(2,634)
Balance at end of period	(4,480)
Foreign currency
Changes in accumulated other comprehensive (loss) income, net of tax
Balance at beginning of period	(1,956)
Other comprehensive loss and pension reclassification	(2,644)
Balance at end of period	(4,600)
Defined benefit pension plan
Changes in accumulated other comprehensive (loss) income, net of tax
Balance at beginning of period	110
Other comprehensive loss and pension reclassification	10
Balance at end of period	$ 120

Cash, cash equivalents and re_3

Cash, cash equivalents and restricted cash (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]
Cash and cash equivalents	$ 145,166	$ 167,297
Long-term Restricted Cash	6,651	6,654
Total cash, cash equivalents and restricted cash	151,817	$ 173,951	$ 139,156	$ 186,347
Security Deposit	5,900
Letter of credit related to workers' compensation insurance	700
Deposit related to customs activity	$ 100

Inventories, net (Details)

Inventories, net (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Inventories, net
Raw materials	$ 220,910	$ 231,200
Work in process	40,481	45,373
Finished goods (completed systems)	21,699	29,909
Inventories, net	$ 283,090	$ 306,482

Product Warranty (Details)

Product Warranty (Details) - USD ($) $ in Thousands	6 Months Ended
Product Warranty (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Product Warranty
Product warranty period	1 year
Changes in standard product warranty liability
Balance at beginning of year	$ 16,757	$ 10,487
Warranties issued during the period	5,755	5,616
Settlements made during the period	(5,653)	(4,834)
Changes in estimate of liability for pre-existing warranties during the period	(444)	1,552
Balance at end of period	16,415	12,821
Product warranty classification
Amount classified as current	14,502	10,867	$ 14,098
Amount classified as long-term (within other long-term liabilities)	1,913	1,954
Total warranty liability	$ 16,415	$ 12,821	$ 16,757

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	6 Months Ended
Fair Value Measurements (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Fair Value Measurements
Short-term investments (U.S. Government Securities and Agency Investments)	$ 403,143	$ 338,851
Forward exchange contracts
Fair Value Measurements
Mark-to-market adjustment on forward exchange contracts	(323)
Level 2 \| Forward exchange contracts \| Estimate of fair value measurement
Fair Value Measurements
Mark-to-market adjustment on forward exchange contracts	(323)
Recurring \| Estimate of fair value measurement
Fair Value Measurements
Total	507,455
Recurring \| Forward exchange contracts \| Estimate of fair value measurement
Fair Value Measurements
Mark-to-market adjustment on forward exchange contracts	(323)
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)	104,958	118,278
Total		457,518
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)	402,820	339,240
Recurring \| Level 1
Fair Value Measurements
Total	507,778
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)	104,958	118,278
Total		457,518
Recurring \| Level 1 \| U.S. Government Securities and Agency Investments
Fair Value Measurements
Short-term investments (U.S. Government Securities and Agency Investments)	402,820	$ 339,240
Recurring \| Level 2
Fair Value Measurements
Mark-to-market adjustment on forward exchange contracts	(323)
Recurring \| Level 2 \| Forward exchange contracts
Fair Value Measurements
Mark-to-market adjustment on forward exchange contracts	$ (323)

Financing Arrangements (Details

Financing Arrangements (Details) - USD ($) $ in Thousands	Jan. 30, 2015	Jun. 30, 2024	Dec. 31, 2023
Financing Arrangements
Long-term finance lease obligation		$ 43,004	$ 43,674
Security deposit		5,900
Building
Financing Arrangements
Proceeds from sale of corporate headquarters	$ 48,900
Lease term	22 years
Long-term finance lease obligation		44,500
UBS Bank USA
Financing Arrangements
Security deposit		$ 5,900

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Valuation allowance
Income tax expense	$ 6,399	$ 3,037	$ 13,803	$ 8,242
Increase (decrease) in income tax expense	3,400
Deferred tax assets, net	55,441		55,441		$ 53,428
Deferred tax assets valuation allowance	$ 11,300		$ 11,300
Maximum
Valuation allowance
Statutory income tax rate (as a percent)	21%		21%

Concentration of Risk (Details)

Concentration of Risk (Details) - customer	3 Months Ended		6 Months Ended		12 Months Ended
Concentration of Risk (Details) - customer	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Revenue \| Customer concentration risk
Concentration of Risk
Number of customers	1	0	0	2
Revenue \| Customer concentration risk \| First customer
Concentration of Risk
Percentage of concentration risk	11.50%			11.60%
Revenue \| Customer concentration risk \| Second customer
Concentration of Risk
Percentage of concentration risk				11.10%
Accounts Receivable \| Credit concentration risk
Concentration of Risk
Number of customers			1		1
Accounts Receivable \| Credit concentration risk \| First customer
Concentration of Risk
Percentage of concentration risk			11.30%		12.20%

Share Repurchase (Details)

Share Repurchase (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	6 Months Ended
	Jun. 30, 2024	Aug. 31, 2023	Feb. 28, 2022
Stockholders' Equity
Share repurchase program common stock authorized amount		$ 200	$ 100
Number of shares repurchased	0.3
Average cost	$ 114.07