Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 01, 2022 | Aug. 05, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 01, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | ICHR | |
Entity Registrant Name | ICHOR HOLDINGS, LTD. | |
Entity Central Index Key | 0001652535 | |
Current Fiscal Year End Date | --12-27 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Ordinary Shares Outstanding | 28,739,608 | |
Title of 12(b) Security | Ordinary Shares, par value $0.0001 | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-37961 | |
Entity Tax Identification Number | 00-0000000 | |
Entity Incorporation, State or Country Code | E9 | |
Entity Address, Address Line One | 3185 Laurelview Ct. | |
Entity Address, City or Town | Fremont | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94538 | |
City Area Code | 510 | |
Local Phone Number | 897-5200 | |
Document Quarterly Report | true | |
Document Transition Report | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 01, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 46,064 | $ 75,495 |
Accounts receivable, net | 158,403 | 142,990 |
Inventories | 290,327 | 236,133 |
Prepaid expenses and other current assets | 5,699 | 8,153 |
Total current assets | 500,493 | 462,771 |
Property and equipment, net | 91,603 | 85,204 |
Operating lease right-of-use assets | 35,649 | 29,790 |
Other noncurrent assets | 12,887 | 9,166 |
Deferred tax assets, net | 9,247 | 8,116 |
Intangible assets, net | 79,923 | 89,927 |
Goodwill | 335,902 | 335,902 |
Total assets | 1,065,704 | 1,020,876 |
Current liabilities: | ||
Accounts payable | 147,650 | 159,727 |
Accrued liabilities | 21,652 | 19,066 |
Other current liabilities | 14,162 | 14,377 |
Current portion of long-term debt | 7,500 | 7,500 |
Current portion of lease liabilities | 7,956 | 7,633 |
Total current liabilities | 198,920 | 208,303 |
Long-term debt, less current portion, net | 296,736 | 285,253 |
Lease liabilities, less current portion | 28,063 | 22,354 |
Deferred tax liabilities, net | 38 | 38 |
Other non-current liabilities | 4,623 | 4,213 |
Total liabilities | 528,380 | 520,161 |
Shareholders’ equity: | ||
Preferred shares ($0.0001 par value; 20,000,000 shares authorized; zero shares issued and outstanding) | ||
Ordinary shares ($0.0001 par value; 200,000,000 shares authorized; 28,735,728 and 28,551,160 shares outstanding, respectively; 33,173,167 and 32,988,599 shares issued, respectively) | 3 | 3 |
Additional paid in capital | 424,471 | 417,438 |
Treasury shares at cost (4,437,439 shares) | (91,578) | (91,578) |
Retained earnings | 204,428 | 174,852 |
Total shareholders’ equity | 537,324 | 500,715 |
Total liabilities and shareholders’ equity | $ 1,065,704 | $ 1,020,876 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jul. 01, 2022 | Dec. 31, 2021 |
Statement Of Financial Position [Abstract] | ||
Preferred shares, par value | $ 0.0001 | $ 0.0001 |
Preferred shares, authorized | 20,000,000 | 20,000,000 |
Preferred shares, issued | 0 | 0 |
Preferred shares, outstanding | 0 | 0 |
Ordinary shares, par value | $ 0.0001 | $ 0.0001 |
Ordinary shares, authorized | 200,000,000 | 200,000,000 |
Ordinary shares, issued | 33,173,167 | 32,988,599 |
Ordinary shares, outstanding | 28,735,728 | 28,551,160 |
Treasury shares | 4,437,439 | 4,437,439 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2022 | Jun. 25, 2021 | Jul. 01, 2022 | Jun. 25, 2021 | |
Income Statement [Abstract] | ||||
Net sales | $ 329,560 | $ 282,308 | $ 622,706 | $ 546,874 |
Cost of sales | 274,099 | 234,955 | 523,313 | 460,009 |
Gross profit | 55,461 | 47,353 | 99,393 | 86,865 |
Operating expenses: | ||||
Research and development | 4,907 | 4,049 | 9,758 | 7,564 |
Selling, general, and administrative | 21,103 | 14,699 | 44,370 | 29,048 |
Amortization of intangible assets | 4,655 | 3,390 | 10,004 | 6,781 |
Total operating expenses | 30,665 | 22,138 | 64,132 | 43,393 |
Operating income | 24,796 | 25,215 | 35,261 | 43,472 |
Interest expense, net | 2,063 | 1,591 | 3,595 | 3,510 |
Other expense (income), net | (548) | 22 | (464) | 207 |
Income before income taxes | 23,281 | 23,602 | 32,130 | 39,755 |
Income tax expense | 1,744 | 737 | 2,554 | 2,252 |
Net income | $ 21,537 | $ 22,865 | $ 29,576 | $ 37,503 |
Net income per share: | ||||
Net income per share Basic | $ 0.75 | $ 0.81 | $ 1.03 | $ 1.33 |
Net income per share Diluted | $ 0.74 | $ 0.79 | $ 1.02 | $ 1.30 |
Shares used to compute net income per share: | ||||
Shares used to compute net income per share, Basic | 28,665,930 | 28,180,821 | 28,629,280 | 28,092,535 |
Shares used to compute net income per share, Diluted | 29,042,519 | 29,092,521 | 28,948,055 | 28,942,902 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2022 | Jun. 25, 2021 | Jul. 01, 2022 | Jun. 25, 2021 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 21,537 | $ 22,865 | $ 29,576 | $ 37,503 |
Other comprehensive loss, net of tax: | ||||
Unrealized loss on available-for-sale marketable securities | (24) | (24) | ||
Comprehensive income | $ 21,537 | $ 22,841 | $ 29,576 | $ 37,479 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Ordinary Shares | Additional Paid-in Capital | Treasury Shares | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
Balance at Dec. 25, 2020 | $ 411,689 | $ 3 | $ 399,311 | $ (91,578) | $ 103,953 | |
Balance, Shares at Dec. 25, 2020 | 27,907,077 | 4,437,439 | ||||
Ordinary shares issued from exercise of stock options | 5,531 | 5,531 | ||||
Ordinary shares issued from exercise of stock options, shares | 284,731 | |||||
Ordinary shares issued from vesting of restricted share units | (1,918) | (1,918) | ||||
Ordinary shares issued from vesting of restricted share units, shares | 107,600 | |||||
Ordinary shares issued from employee share purchase plan | 606 | 606 | ||||
Ordinary shares issued from employee share purchase plan, shares | 27,151 | |||||
Share-based compensation expense | 5,096 | 5,096 | ||||
Other comprehensive loss | (24) | $ (24) | ||||
Net income | 37,503 | 37,503 | ||||
Balance at Jun. 25, 2021 | 458,483 | $ 3 | 408,626 | $ (91,578) | (24) | 141,456 |
Balance, Shares at Jun. 25, 2021 | 28,326,559 | 4,437,439 | ||||
Balance at Mar. 26, 2021 | 431,062 | $ 3 | 404,046 | $ (91,578) | 118,591 | |
Balance, Shares at Mar. 26, 2021 | 28,070,251 | 4,437,439 | ||||
Ordinary shares issued from exercise of stock options | 3,150 | 3,150 | ||||
Ordinary shares issued from exercise of stock options, shares | 179,131 | |||||
Ordinary shares issued from vesting of restricted share units | (1,251) | (1,251) | ||||
Ordinary shares issued from vesting of restricted share units, shares | 77,177 | |||||
Share-based compensation expense | 2,681 | 2,681 | ||||
Other comprehensive loss | (24) | (24) | ||||
Net income | 22,865 | 22,865 | ||||
Balance at Jun. 25, 2021 | 458,483 | $ 3 | 408,626 | $ (91,578) | $ (24) | 141,456 |
Balance, Shares at Jun. 25, 2021 | 28,326,559 | 4,437,439 | ||||
Balance at Dec. 31, 2021 | 500,715 | $ 3 | 417,438 | $ (91,578) | 174,852 | |
Balance, Shares at Dec. 31, 2021 | 28,551,160 | 4,437,439 | ||||
Ordinary shares issued from exercise of stock options | 1,038 | 1,038 | ||||
Ordinary shares issued from exercise of stock options, shares | 47,768 | |||||
Ordinary shares issued from vesting of restricted share units | (1,340) | (1,340) | ||||
Ordinary shares issued from vesting of restricted share units, shares | 94,735 | |||||
Ordinary shares issued from employee share purchase plan | 929 | 929 | ||||
Ordinary shares issued from employee share purchase plan, shares | 42,065 | |||||
Share-based compensation expense | 6,406 | 6,406 | ||||
Net income | 29,576 | 29,576 | ||||
Balance at Jul. 01, 2022 | 537,324 | $ 3 | 424,471 | $ (91,578) | 204,428 | |
Balance, Shares at Jul. 01, 2022 | 28,735,728 | 4,437,439 | ||||
Balance at Apr. 01, 2022 | 511,829 | $ 3 | 420,513 | $ (91,578) | 182,891 | |
Balance, Shares at Apr. 01, 2022 | 28,628,907 | 4,437,439 | ||||
Ordinary shares issued from exercise of stock options | 83 | 83 | ||||
Ordinary shares issued from exercise of stock options, shares | 5,015 | |||||
Ordinary shares issued from vesting of restricted share units | (563) | (563) | ||||
Ordinary shares issued from vesting of restricted share units, shares | 59,741 | |||||
Ordinary shares issued from employee share purchase plan | 929 | 929 | ||||
Ordinary shares issued from employee share purchase plan, shares | 42,065 | |||||
Share-based compensation expense | 3,509 | 3,509 | ||||
Net income | 21,537 | 21,537 | ||||
Balance at Jul. 01, 2022 | $ 537,324 | $ 3 | $ 424,471 | $ (91,578) | $ 204,428 | |
Balance, Shares at Jul. 01, 2022 | 28,735,728 | 4,437,439 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 01, 2022 | Jun. 25, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 29,576 | $ 37,503 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 18,394 | 11,464 |
Share-based compensation | 6,406 | 5,096 |
Deferred income taxes | (1,131) | 1,089 |
Amortization of debt issuance costs | 233 | 483 |
Gain on sale of asset disposal group | (504) | |
Other | 59 | |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable, net | (15,413) | (18,131) |
Inventories | (54,194) | (31,500) |
Prepaid expenses and other assets | 2,461 | (478) |
Accounts payable | (12,453) | 33,302 |
Accrued liabilities | 2,586 | (952) |
Other liabilities | (3,360) | 1,458 |
Net cash provided by (used in) operating activities | (26,895) | 38,889 |
Cash flows from investing activities: | ||
Capital expenditures | (14,413) | (15,369) |
Purchase of marketable securities | (105,033) | |
Proceeds from sale of property and equipment | 504 | |
Net cash used in investing activities | (14,413) | (119,898) |
Cash flows from financing activities: | ||
Issuance of ordinary shares under share-based compensation plans | 1,967 | 6,117 |
Employees' taxes paid upon vesting of restricted share units | (1,340) | (1,918) |
Borrowings on revolving credit facility | 25,000 | |
Repayments on revolving credit facility | (10,000) | (30,000) |
Repayments on term loan | (3,750) | (4,375) |
Net cash provided by (used in) financing activities | 11,877 | (30,176) |
Net decrease in cash | (29,431) | (111,185) |
Cash at beginning of period | 75,495 | 252,899 |
Cash at end of period | 46,064 | 141,714 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the period for interest | 3,295 | 3,341 |
Cash paid during the period for taxes, net of refunds | 1,499 | 1,272 |
Supplemental disclosures of non-cash activities: | ||
Capital expenditures included in accounts payable | 1,306 | 246 |
Right-of-use assets obtained in exchange for new operating lease liabilities, including those acquired through acquisitions | $ 9,587 | $ 1,709 |
Basis of Presentation and Selec
Basis of Presentation and Selected Significant Accounting Policies | 6 Months Ended |
Jul. 01, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Selected Significant Accounting Policies | Note 1 – Basis of Presentation and Selected Significant Accounting Policies Basis of Presentation These consolidated unaudited financial statements have been prepared in accordance with generally accepted accounting principles in the U.S. (“GAAP”). All intercompany balances and transactions have been eliminated upon consolidation. All dollar figures presented in tables in the notes to consolidated financial statements are in thousands, except per share amounts. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted as permitted by the SEC's rules and regulations for interim reporting. These consolidated financial statements should be read in conjunction with our audited financial statements and notes thereto included in our Annual Report on Form 10‑K for the year ended December 31, 2021. Year End We use a 52- or 53-week fiscal year ending on the last Friday in December. The three months ended July 1, 2022 and June 25, 2021 were both 13 weeks. References to the second quarter of 2022 and 2021 refer to the three-month periods then ended . References to fiscal year 2022 and 2021 refer to our fiscal years ending December 30, 2022 and December 31, 2021, respectively. Fiscal year 2022 and 2021 are 52 and 53 weeks, respectively. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods presented. We base our estimates and judgments on historical experience and on various other assumptions that we believe are reasonable under the circumstances. Actual results could differ from the estimates made by management. Significant estimates include inventory valuation and impairment analysis for both definite‑lived intangible assets and goodwill. Cash and Cash Equivalents Cash and cash equivalents consist of deposits and financial instruments which are readily convertible into cash and have original maturities of 90 days or less at the time of acquisition. Fair Value of Financial Instruments The carrying values of our financial instruments, including cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued liabilities, and long-term debt, net of unamortized debt issuance costs, approximate fair value. Revenue Recognition We recognize revenue when control of promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. This amount is recorded as net sales in our consolidated statements of operations. Transaction price – In most of our contracts, prices are generally determined by a customer-issued purchase order and generally remain fixed over the duration of the contract. Certain contracts contain variable consideration, including early-payment discounts and rebates. When a contract includes variable consideration, we evaluate the estimate of the variable consideration to determine whether the estimate needs to be constrained; therefore, we include the variable consideration in the transaction price only to the extent that it is probable that a significant reversal will not occur. Variable consideration estimates are updated at each reporting date. Historically, we have not incurred significant costs to obtain a contract. All amounts billed to a customer relating to shipping and handling are classified as net sales, while all costs incurred by us for shipping and handling are classified as cost of sales. Performance obligations – Substantially all of our performance obligations pertain to promised goods (“products”), which are primarily comprised of fluid delivery subsystems, weldments, and other components. Most of our contracts contain a single performance obligation and are generally completed within twelve months. Product sales are recognized at a point-in-time, generally upon delivery, as such term is defined within the contract, as that is when control of the promised good has transferred. Products are covered by a standard assurance warranty, generally extended for a period of one to two years depending on the customer, which promises that delivered products conform to contract specifications. As such, we account for such warranties under ASC 460, Guarantees , and not as a separate performance obligation . Contract balances – Accounts receivable represents our unconditional right to receive consideration from our customers. Accounts receivable are carried at invoice price less an estimate for doubtful accounts and estimated payment discounts. Payment terms vary by customer but are generally due within 15‑60 days. Historically, we have not incurred significant payment issues with our customers. We had no significant contract assets or liabilities on our consolidated balance sheets in any of the periods presented Accounting Pronouncements Recently Adopted In October 2021, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2021‑08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (Topic 805) . This ASU requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities (deferred revenue) from acquired contracts using the revenue recognition guidance in Topic 606. At the acquisition date, the acquirer applies the revenue model as if it had originated the acquired contracts. The ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Adoption of the ASU should be applied prospectively. Early adoption is also permitted, including adoption in an interim period. If early adopted, the amendments are applied retrospectively to all business combinations for which the acquisition date occurred during the fiscal year of adoption. This ASU is currently not expected to have a material impact on our consolidated financial statements . |
Inventories
Inventories | 6 Months Ended |
Jul. 01, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 2 – Inventories Inventories consist of the following: July 1, 2022 December 31, 2021 Raw materials $ 201,966 $ 159,366 Work in process 68,918 62,537 Finished goods 34,793 28,281 Excess and obsolete adjustment (15,350 ) (14,051 ) Total inventories $ 290,327 $ 236,133 |
Property and Equipment and Othe
Property and Equipment and Other Noncurrent Assets | 6 Months Ended |
Jul. 01, 2022 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment and Other Noncurrent Assets | Note 3 – Property and Equipment and Other Noncurrent Assets Property and equipment consist of the following: July 1, 2022 December 31, 2021 Machinery $ 87,403 $ 80,953 Leasehold improvements 40,732 36,706 Computer software, hardware, and equipment 9,370 8,031 Office furniture, fixtures and equipment 1,258 1,168 Vehicles 325 284 Construction-in-process 11,274 8,565 150,362 135,707 Less accumulated depreciation (58,759 ) (50,503 ) Total property and equipment, net $ 91,603 $ 85,204 Depreciation expense was $4.4 million and $2.4 million for the second quarter of 2022 and 2021, respectively. Depreciation expense was $8.4 million and $4.7 million for the six months ended July 1, 2022 and June 25, 2021, respectively. Cloud Computing Implementation Costs We capitalize implementation costs associated with hosting arrangement that are service contracts. These costs are recorded to prepaid expenses or other noncurrent assets. To-date, these costs are those incurred to implement a new company-wide ERP system. The following table summarizes capitalized cloud computing implementation costs: Capitalized cloud computing implementation costs as of December 31, 2021 $ 8,054 Costs capitalized during the period 4,073 Capitalized costs amortized during the period (399 ) Capitalized cloud computing implementation costs as of July 1, 2022 $ 11,728 |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jul. 01, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 4 – Intangible Assets Definite‑lived intangible assets consist of the following: July 1, 2022 Gross value Accumulated amortization Accumulated impairment charges Carrying amount Weighted average useful life Customer relationships 117,022 (44,140 ) — 72,882 8.4 years Developed technology 11,047 (4,006 ) — 7,041 10.0 years Total intangible assets $ 128,069 $ (48,146 ) $ — $ 79,923 December 31, 2021 Gross value Accumulated amortization Accumulated impairment charges Carrying amount Weighted average useful life Customer relationships 146,569 (65,953 ) — 80,616 8.7 years Developed technology 11,047 (3,483 ) — 7,564 10.0 years Order backlog 2,600 (853 ) — 1,747 6 months Total intangible assets $ 160,216 $ (70,289 ) $ — $ 89,927 |
Leases
Leases | 6 Months Ended |
Jul. 01, 2022 | |
Leases [Abstract] | |
Leases | Note 5 – Leases Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. For purposes of calculating operating lease ROU assets and operating lease liabilities, we use the non-cancellable lease term plus options to extend that we are reasonably certain to take. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. We lease facilities under various non-cancellable operating leases expiring through 2031. In addition to base rental payments, we are generally responsible for our proportionate share of operating expenses, including facility maintenance, insurance, and property taxes. As these amounts are variable, they are not included in lease liabilities. As of July 1, 2022, we had one operating lease executed for which the rental period had not yet commenced. The components of lease expense are as follows: Three Months Ended Six Months Ended July 1, 2022 June 25, 2021 July 1, 2022 June 25, 2021 Operating lease cost $ 2,239 $ 1,391 $ 4,284 $ 2,772 Supplemental cash flow information related to leases is as follows: Six Months Ended July 1, 2022 June 25, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,802 $ 2,691 Supplemental balance sheet information related to leases is as follows: July 1, 2022 June 25, 2021 Weighted-average remaining lease term of operating leases 5.7 years 2.4 years Weighted-average discount rate of operating leases 2.3% 4.2% Future minimum lease payments under non-cancelable leases as of July 1, 2022 are as follows: 2022, remaining $ 4,217 2023 7,322 2024 6,603 2025 5,991 2026 5,510 Thereafter 8,599 Total future minimum lease payments 38,242 Less imputed interest (2,223 ) Total lease liabilities $ 36,019 |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 01, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 6 – Income Taxes Income tax information for the periods reported are as follows: Three Months Ended Six Months Ended July 1, 2022 June 25, 2021 July 1, 2022 June 25, 2021 Income tax expense $ 1,744 $ 737 $ 2,554 $ 2,252 Income before income taxes $ 23,281 $ 23,602 $ 32,130 $ 39,755 Effective income tax rate 7.5 % 3.1 % 7.9 % 5.7 % Our effective tax rates for the three and six months ended July 1, 2022 and June 25, 2021 differ from the statutory rate primarily due to taxes on foreign income that differ from the U.S. tax rate, including a tax holiday in Singapore, and the impact of share-based compensation activity during the quarter. The ending balance for the unrecognized tax benefits for uncertain tax positions was approximately $3.8 million at July 1, 2022. The related interest and penalties were insignificant. The uncertain tax positions that are reasonably possible to decrease in the next twelve months are insignificant. As of July 1, 2022, we were not under examination by tax authorities. |
Employee Benefit Programs
Employee Benefit Programs | 6 Months Ended |
Jul. 01, 2022 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Programs | Note 7 – Employee Benefit Programs 401(k) Plan We sponsor a 401(k) plan available to employees of our U.S.‑based subsidiaries. Participants may make salary deferral contributions not to exceed 50% of a participant’s annual compensation or the maximum amount otherwise allowed by law. Eligible employees receive a discretionary matching contribution equal to 50% of a participant’s deferral, up to an annual matching maximum of 4% of a participant’s annual compensation. Matching contributions were $0.7 million and $0.5 million for the |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jul. 01, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 8 – Long-Term Debt Long‑term debt consists of the following: July 1, 2022 December 31, 2021 Term loan $ 146,250 $ 150,000 Revolving credit facility 160,000 145,000 Total principal amount of long-term debt 306,250 295,000 Less unamortized debt issuance costs (2,014 ) (2,247 ) Total long-term debt, net 304,236 292,753 Less current portion (7,500 ) (7,500 ) Total long-term debt, less current portion, net $ 296,736 $ 285,253 On October 29, 2021, we entered into an amended and restated credit agreement, which includes a group of financial institutions as direct lenders underlying the agreement. The credit agreement includes a $150.0 million term loan facility and a $250.0 million revolving credit facility (together, “credit facilities”). Term loan principal payments of $1.9 million are due on a quarterly basis. The credit facilities mature on October 29, 2026. Interest is charged at either the Base Rate or the Bloomberg Short-Term Bank Yield (“BSBY”) Rate (as such terms are defined in the credit agreement) at our option, plus an applicable margin . The Base Rate is equal to the higher of i) the Prime Rate, ii) the Federal Funds Rate plus 0.5%, or iii) the BSBY Rate plus 1.00%. The applicable margin on Base Rate and BSBY Rate loans is 0.375‑1.375% and 1.375‑2.375% per annum, respectively, depending on our leverage ratio. We are also charged a commitment fee of 0.175%-0.350% on the unused portion of our revolving credit facility. Base Rate interest payments and commitment fees are due quarterly. BSBY Rate interest payments are due on the last day of the applicable interest period, or quarterly for applicable interest periods longer than 3 months. At July 1, 2022, our credit facilities bore interest under the BSBY rate option of 3.44%. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jul. 01, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | Note 9 – Share‑Based Compensation The 2016 Omnibus Incentive Plan (the “2016 Plan”) provides for grants of share‑based awards to employees, directors, and consultants. Forfeited or expired awards are returned to the incentive plan pool for future grants. Awards generally vest over four years, 25% on the first anniversary of the date of grant and quarterly thereafter over the remaining 3 years. Upon vesting of RSUs, employees may elect to have shares withheld to cover statutory minimum withholding taxes. Shares withheld are not reflected as an issuance of ordinary shares within our consolidated statements of shareholders’ equity, as the shares were never issued, and the associated tax payments are reflected as financing activities within our consolidated statements of cash flows. Share‑based compensation expense across all plans for options, RSUs, and employee share purchase rights was $3.5 million and $2.7 million for the second quarter of 2022 and 2021, and was $6.4 million and $5.1 million for the six months ended July 1, 2022 and June 25, 2021, respectively. Stock Options The following table summarizes option activity: Number of Stock Options Service condition Weighted average exercise price per share Weighted average remaining contractual term Aggregate intrinsic value Outstanding, December 31, 2021 921,469 $ 23.20 Granted — $ — Exercised (47,768 ) $ 21.73 Forfeited or expired (21,775 ) $ 23.24 Outstanding, July 1, 2022 851,926 $ 23.28 3.4 years $ 556 Exercisable, July 1, 2022 663,985 $ 23.16 3.1 years $ 519 Restricted Share Units The following table summarizes RSU activity: Number of Restricted Share Units Service condition Performance condition Market condition Weighted average grant-date fair value per share Unvested, December 31, 2021 559,310 9,716 14,572 $ 37.05 Granted 556,600 47,846 71,770 $ 27.49 Vested (138,437 ) — — $ 36.03 Forfeited (58,923 ) — — $ 33.20 Unvested, July 1, 2022 918,550 57,562 86,342 $ 31.31 Employee Share Purchase Plan The 2017 Employee Stock Purchase Plan (the “2017 ESPP”) grants employees the ability to designate a portion of their base-pay to purchase ordinary shares at a price equal to 85% of the fair market value of our ordinary shares on the first or last day of each 6 month purchase period. Purchase periods begin on January 1 or July 1 and end on June 30 or December 31, or the next business day if such date is not a business day. Shares are purchased on the last day of the purchase period. As of July 1, 2022, approximately 2.3 million ordinary shares remain available for purchase under the 2017 ESPP. |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jul. 01, 2022 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 10 – Earnings per Share The following table sets forth the computation of basic and diluted earnings per share and a reconciliation of the numerator and denominator used in the calculation: Three Months Ended Six Months Ended July 1, 2022 June 25, 2021 July 1, 2022 June 25, 2021 Numerator: Net income $ 21,537 $ 22,865 $ 29,576 $ 37,503 Denominator: Basic weighted average ordinary shares outstanding 28,665,930 28,180,821 28,629,280 28,092,535 Dilutive effect of options 148,160 601,871 215,582 550,059 Dilutive effect of RSUs 228,107 298,499 102,871 288,978 Dilutive effect of ESPP 322 11,330 322 11,330 Diluted weighted average ordinary shares outstanding 29,042,519 29,092,521 28,948,055 28,942,902 Securities excluded from the calculation of diluted weighted average ordinary shares outstanding (1) 721,000 185,000 915,000 185,000 Earnings per share: Net income: Basic $ 0.75 $ 0.81 $ 1.03 $ 1.33 Diluted $ 0.74 $ 0.79 $ 1.02 $ 1.30 (1) Represents potentially dilutive options and RSUs excluded from the calculation of diluted weighted average ordinary shares outstanding, because including them would have been antidilutive under the treasury stock method. |
Segment Information
Segment Information | 6 Months Ended |
Jul. 01, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Note 11 – Segment Information Our Chief Operating Decision Maker, the Chief Executive Officer, reviews our results of operations on a consolidated level and executive staff is structured by function rather than by product category. Additionally, key resources, decisions, and assessment of performance are analyzed at a company‑wide level. Therefore, we operate in one operating segment. Foreign operations are conducted primarily through our wholly owned subsidiaries in Singapore and Malaysia, and to a lesser degree, Scotland, Korea, and Mexico. Our principal markets include North America, Asia, and to a lesser degree, Europe. Sales by geographic area represents sales to unaffiliated customers based upon the location to which the products were shipped. The following table sets forth sales by geographic area: Three Months Ended Six Months Ended July 1, 2022 June 25, 2021 July 1, 2022 June 25, 2021 United States of America $ 158,374 $ 137,747 $ 300,844 $ 276,881 Singapore 114,398 101,214 217,693 187,538 Europe 24,806 22,439 49,198 39,769 Other 31,982 20,908 54,971 42,686 Total net sales $ 329,560 $ 282,308 $ 622,706 $ 546,874 Foreign long-lived assets, exclusive of deferred tax assets, were $42.2 million and $38.4 million at July 1, 2022 and December 31, 2021, respectively |
Basis of Presentation and Sel_2
Basis of Presentation and Selected Significant Accounting Policies (Policies) | 6 Months Ended |
Jul. 01, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation These consolidated unaudited financial statements have been prepared in accordance with generally accepted accounting principles in the U.S. (“GAAP”). All intercompany balances and transactions have been eliminated upon consolidation. All dollar figures presented in tables in the notes to consolidated financial statements are in thousands, except per share amounts. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted as permitted by the SEC's rules and regulations for interim reporting. These consolidated financial statements should be read in conjunction with our audited financial statements and notes thereto included in our Annual Report on Form 10‑K for the year ended December 31, 2021. |
Year End | Year End We use a 52- or 53-week fiscal year ending on the last Friday in December. The three months ended July 1, 2022 and June 25, 2021 were both 13 weeks. References to the second quarter of 2022 and 2021 refer to the three-month periods then ended . References to fiscal year 2022 and 2021 refer to our fiscal years ending December 30, 2022 and December 31, 2021, respectively. Fiscal year 2022 and 2021 are 52 and 53 weeks, respectively. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods presented. We base our estimates and judgments on historical experience and on various other assumptions that we believe are reasonable under the circumstances. Actual results could differ from the estimates made by management. Significant estimates include inventory valuation and impairment analysis for both definite‑lived intangible assets and goodwill. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of deposits and financial instruments which are readily convertible into cash and have original maturities of 90 days or less at the time of acquisition. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying values of our financial instruments, including cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued liabilities, and long-term debt, net of unamortized debt issuance costs, approximate fair value. |
Revenue Recognition | Revenue Recognition We recognize revenue when control of promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. This amount is recorded as net sales in our consolidated statements of operations. Transaction price – In most of our contracts, prices are generally determined by a customer-issued purchase order and generally remain fixed over the duration of the contract. Certain contracts contain variable consideration, including early-payment discounts and rebates. When a contract includes variable consideration, we evaluate the estimate of the variable consideration to determine whether the estimate needs to be constrained; therefore, we include the variable consideration in the transaction price only to the extent that it is probable that a significant reversal will not occur. Variable consideration estimates are updated at each reporting date. Historically, we have not incurred significant costs to obtain a contract. All amounts billed to a customer relating to shipping and handling are classified as net sales, while all costs incurred by us for shipping and handling are classified as cost of sales. Performance obligations – Substantially all of our performance obligations pertain to promised goods (“products”), which are primarily comprised of fluid delivery subsystems, weldments, and other components. Most of our contracts contain a single performance obligation and are generally completed within twelve months. Product sales are recognized at a point-in-time, generally upon delivery, as such term is defined within the contract, as that is when control of the promised good has transferred. Products are covered by a standard assurance warranty, generally extended for a period of one to two years depending on the customer, which promises that delivered products conform to contract specifications. As such, we account for such warranties under ASC 460, Guarantees , and not as a separate performance obligation . Contract balances – Accounts receivable represents our unconditional right to receive consideration from our customers. Accounts receivable are carried at invoice price less an estimate for doubtful accounts and estimated payment discounts. Payment terms vary by customer but are generally due within 15‑60 days. Historically, we have not incurred significant payment issues with our customers. We had no significant contract assets or liabilities on our consolidated balance sheets in any of the periods presented |
Accounting Pronouncements Recently Adopted | Accounting Pronouncements Recently Adopted In October 2021, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2021‑08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (Topic 805) . This ASU requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities (deferred revenue) from acquired contracts using the revenue recognition guidance in Topic 606. At the acquisition date, the acquirer applies the revenue model as if it had originated the acquired contracts. The ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Adoption of the ASU should be applied prospectively. Early adoption is also permitted, including adoption in an interim period. If early adopted, the amendments are applied retrospectively to all business combinations for which the acquisition date occurred during the fiscal year of adoption. This ASU is currently not expected to have a material impact on our consolidated financial statements . |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jul. 01, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following: July 1, 2022 December 31, 2021 Raw materials $ 201,966 $ 159,366 Work in process 68,918 62,537 Finished goods 34,793 28,281 Excess and obsolete adjustment (15,350 ) (14,051 ) Total inventories $ 290,327 $ 236,133 |
Property and Equipment and Ot_2
Property and Equipment and Other Noncurrent Assets (Tables) | 6 Months Ended |
Jul. 01, 2022 | |
Property Plant And Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment consist of the following: July 1, 2022 December 31, 2021 Machinery $ 87,403 $ 80,953 Leasehold improvements 40,732 36,706 Computer software, hardware, and equipment 9,370 8,031 Office furniture, fixtures and equipment 1,258 1,168 Vehicles 325 284 Construction-in-process 11,274 8,565 150,362 135,707 Less accumulated depreciation (58,759 ) (50,503 ) Total property and equipment, net $ 91,603 $ 85,204 |
Summary of Capitalized Cloud Computing Implementation Cost | The following table summarizes capitalized cloud computing implementation costs: Capitalized cloud computing implementation costs as of December 31, 2021 $ 8,054 Costs capitalized during the period 4,073 Capitalized costs amortized during the period (399 ) Capitalized cloud computing implementation costs as of July 1, 2022 $ 11,728 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jul. 01, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Definite-Lived Intangible Assets | Definite‑lived intangible assets consist of the following: July 1, 2022 Gross value Accumulated amortization Accumulated impairment charges Carrying amount Weighted average useful life Customer relationships 117,022 (44,140 ) — 72,882 8.4 years Developed technology 11,047 (4,006 ) — 7,041 10.0 years Total intangible assets $ 128,069 $ (48,146 ) $ — $ 79,923 December 31, 2021 Gross value Accumulated amortization Accumulated impairment charges Carrying amount Weighted average useful life Customer relationships 146,569 (65,953 ) — 80,616 8.7 years Developed technology 11,047 (3,483 ) — 7,564 10.0 years Order backlog 2,600 (853 ) — 1,747 6 months Total intangible assets $ 160,216 $ (70,289 ) $ — $ 89,927 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jul. 01, 2022 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense are as follows: Three Months Ended Six Months Ended July 1, 2022 June 25, 2021 July 1, 2022 June 25, 2021 Operating lease cost $ 2,239 $ 1,391 $ 4,284 $ 2,772 |
Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases is as follows: Six Months Ended July 1, 2022 June 25, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,802 $ 2,691 |
Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases is as follows: July 1, 2022 June 25, 2021 Weighted-average remaining lease term of operating leases 5.7 years 2.4 years Weighted-average discount rate of operating leases 2.3% 4.2% |
Future Minimum Lease Payments Under Non-Cancelable Leases | Future minimum lease payments under non-cancelable leases as of July 1, 2022 are as follows: 2022, remaining $ 4,217 2023 7,322 2024 6,603 2025 5,991 2026 5,510 Thereafter 8,599 Total future minimum lease payments 38,242 Less imputed interest (2,223 ) Total lease liabilities $ 36,019 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jul. 01, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Taxes | Income tax information for the periods reported are as follows: Three Months Ended Six Months Ended July 1, 2022 June 25, 2021 July 1, 2022 June 25, 2021 Income tax expense $ 1,744 $ 737 $ 2,554 $ 2,252 Income before income taxes $ 23,281 $ 23,602 $ 32,130 $ 39,755 Effective income tax rate 7.5 % 3.1 % 7.9 % 5.7 % |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jul. 01, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long‑term debt consists of the following: July 1, 2022 December 31, 2021 Term loan $ 146,250 $ 150,000 Revolving credit facility 160,000 145,000 Total principal amount of long-term debt 306,250 295,000 Less unamortized debt issuance costs (2,014 ) (2,247 ) Total long-term debt, net 304,236 292,753 Less current portion (7,500 ) (7,500 ) Total long-term debt, less current portion, net $ 296,736 $ 285,253 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jul. 01, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Option Activity | The following table summarizes option activity: Number of Stock Options Service condition Weighted average exercise price per share Weighted average remaining contractual term Aggregate intrinsic value Outstanding, December 31, 2021 921,469 $ 23.20 Granted — $ — Exercised (47,768 ) $ 21.73 Forfeited or expired (21,775 ) $ 23.24 Outstanding, July 1, 2022 851,926 $ 23.28 3.4 years $ 556 Exercisable, July 1, 2022 663,985 $ 23.16 3.1 years $ 519 |
Schedule of RSU Activity | The following table summarizes RSU activity: Number of Restricted Share Units Service condition Performance condition Market condition Weighted average grant-date fair value per share Unvested, December 31, 2021 559,310 9,716 14,572 $ 37.05 Granted 556,600 47,846 71,770 $ 27.49 Vested (138,437 ) — — $ 36.03 Forfeited (58,923 ) — — $ 33.20 Unvested, July 1, 2022 918,550 57,562 86,342 $ 31.31 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jul. 01, 2022 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share and a reconciliation of the numerator and denominator used in the calculation: Three Months Ended Six Months Ended July 1, 2022 June 25, 2021 July 1, 2022 June 25, 2021 Numerator: Net income $ 21,537 $ 22,865 $ 29,576 $ 37,503 Denominator: Basic weighted average ordinary shares outstanding 28,665,930 28,180,821 28,629,280 28,092,535 Dilutive effect of options 148,160 601,871 215,582 550,059 Dilutive effect of RSUs 228,107 298,499 102,871 288,978 Dilutive effect of ESPP 322 11,330 322 11,330 Diluted weighted average ordinary shares outstanding 29,042,519 29,092,521 28,948,055 28,942,902 Securities excluded from the calculation of diluted weighted average ordinary shares outstanding (1) 721,000 185,000 915,000 185,000 Earnings per share: Net income: Basic $ 0.75 $ 0.81 $ 1.03 $ 1.33 Diluted $ 0.74 $ 0.79 $ 1.02 $ 1.30 (1) Represents potentially dilutive options and RSUs excluded from the calculation of diluted weighted average ordinary shares outstanding, because including them would have been antidilutive under the treasury stock method. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jul. 01, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Sales By Geographic Area | The following table sets forth sales by geographic area: Three Months Ended Six Months Ended July 1, 2022 June 25, 2021 July 1, 2022 June 25, 2021 United States of America $ 158,374 $ 137,747 $ 300,844 $ 276,881 Singapore 114,398 101,214 217,693 187,538 Europe 24,806 22,439 49,198 39,769 Other 31,982 20,908 54,971 42,686 Total net sales $ 329,560 $ 282,308 $ 622,706 $ 546,874 |
Basis of Presentation and Sel_3
Basis of Presentation and Selected Significant Accounting Policies - Additional Information (Details) | 6 Months Ended |
Jul. 01, 2022 | |
Basis Of Presentation [Line Items] | |
Original maturities acquisition period | 90 days |
Minimum | |
Basis Of Presentation [Line Items] | |
Extended product warranty period | 1 year |
Payment terms, due period | 15 days |
Maximum | |
Basis Of Presentation [Line Items] | |
Extended product warranty period | 2 years |
Payment terms, due period | 60 days |
Basis of Presentation and Sel_4
Basis of Presentation and Selected Significant Accounting Policies - Additional Information (Details 1) | Jul. 01, 2022 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-07-02 | |
Basis Of Presentation [Line Items] | |
Performance obligation satisfaction period | 12 months |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Jul. 01, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 201,966 | $ 159,366 |
Work in process | 68,918 | 62,537 |
Finished goods | 34,793 | 28,281 |
Excess and obsolete adjustment | (15,350) | (14,051) |
Total inventories | $ 290,327 | $ 236,133 |
Property and Equipment and Ot_3
Property and Equipment and Other Noncurrent Assets - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Jul. 01, 2022 | Dec. 31, 2021 |
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 150,362 | $ 135,707 |
Less accumulated depreciation | (58,759) | (50,503) |
Total property and equipment, net | 91,603 | 85,204 |
Machinery | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 87,403 | 80,953 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 40,732 | 36,706 |
Office Furniture, Fixtures and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,258 | 1,168 |
Vehicles | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 325 | 284 |
Construction-In-Progress | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 11,274 | 8,565 |
Computer Software, Hardware and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 9,370 | $ 8,031 |
Property and Equipment and Ot_4
Property and Equipment and Other Noncurrent Assets - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2022 | Jun. 25, 2021 | Jul. 01, 2022 | Jun. 25, 2021 | |
Property Plant And Equipment [Abstract] | ||||
Depreciation expense | $ 4.4 | $ 2.4 | $ 8.4 | $ 4.7 |
Property and Equipment and Ot_5
Property and Equipment and Other Noncurrent Assets - Summary of Capitalized Cloud Computing Implementation Cost (Details) $ in Thousands | 6 Months Ended |
Jul. 01, 2022 USD ($) | |
Property Plant And Equipment [Abstract] | |
Capitalized cloud computing implementation costs | $ 8,054 |
Costs capitalized during the period | 4,073 |
Capitalized costs amortized during the period | (399) |
Capitalized cloud computing implementation costs | $ 11,728 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Definite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jul. 01, 2022 | Dec. 31, 2021 | |
Finite Lived Intangible Assets [Line Items] | ||
Gross value | $ 128,069 | $ 160,216 |
Accumulated amortization | (48,146) | (70,289) |
Carrying amount | 79,923 | 89,927 |
Customer Relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross value | 117,022 | 146,569 |
Accumulated amortization | (44,140) | (65,953) |
Carrying amount | $ 72,882 | $ 80,616 |
Customer Relationships | Weighted Average | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted average useful life | 8 years 4 months 24 days | 8 years 8 months 12 days |
Developed Technology | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross value | $ 11,047 | $ 11,047 |
Accumulated amortization | (4,006) | (3,483) |
Carrying amount | $ 7,041 | $ 7,564 |
Developed Technology | Weighted Average | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted average useful life | 10 years | 10 years |
Order Backlog | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross value | $ 2,600 | |
Accumulated amortization | (853) | |
Carrying amount | $ 1,747 | |
Order Backlog | Weighted Average | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted average useful life | 6 months |
Leases - Additional Information
Leases - Additional Information (Detail) | 6 Months Ended |
Jul. 01, 2022 Operatinglease | |
Leases [Abstract] | |
Non-cancellable net operating lease expiration year | 2031 |
Lessee, operating lease, not yet commenced, description | As of July 1, 2022, we had one operating lease executed for which the rental period had not yet commenced. |
Number of operating lease executed | 1 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2022 | Jun. 25, 2021 | Jul. 01, 2022 | Jun. 25, 2021 | |
Leases [Abstract] | ||||
Operating lease cost | $ 2,239 | $ 1,391 | $ 4,284 | $ 2,772 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information Related to Leases (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 01, 2022 | Jun. 25, 2021 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 3,802 | $ 2,691 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Leases (Detail) | Jul. 01, 2022 | Jun. 25, 2021 |
Leases [Abstract] | ||
Weighted-average remaining lease term of operating leases | 5 years 8 months 12 days | 2 years 4 months 24 days |
Weighted-average discount rate of operating leases | 2.30% | 4.20% |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments Under Non-Cancelable Leases (Detail) $ in Thousands | Jul. 01, 2022 USD ($) |
Leases [Abstract] | |
2022, remaining | $ 4,217 |
2023 | 7,322 |
2024 | 6,603 |
2025 | 5,991 |
2026 | 5,510 |
Thereafter | 8,599 |
Total future minimum lease payments | 38,242 |
Less imputed interest | (2,223) |
Total lease liabilities | $ 36,019 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2022 | Jun. 25, 2021 | Jul. 01, 2022 | Jun. 25, 2021 | |
Components Of Income Tax Expense Benefit Continuing Operations [Abstract] | ||||
Income tax expense | $ 1,744 | $ 737 | $ 2,554 | $ 2,252 |
Income before income taxes | $ 23,281 | $ 23,602 | $ 32,130 | $ 39,755 |
Effective income tax rate | 7.50% | 3.10% | 7.90% | 5.70% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) $ in Millions | Jul. 01, 2022 USD ($) |
Income Tax Disclosure [Abstract] | |
Unrecognized tax benefits for uncertain tax positions | $ 3.8 |
Employee Benefit Programs - Add
Employee Benefit Programs - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2022 | Jun. 25, 2021 | Jul. 01, 2022 | Jun. 25, 2021 | |
Defined Contribution Plan Disclosure [Line Items] | ||||
Percentage of maximum annual contributions per employee | 50% | 50% | ||
Percentage of eligible employee receive discretionary matching contribution | 50% | 50% | ||
Employee matching contributions | $ 0.7 | $ 0.5 | $ 1.6 | $ 1.1 |
Maximum | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Percentage of maximum annual contributions per employee | 4% |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | Jul. 01, 2022 | Dec. 31, 2021 |
Line Of Credit Facility [Line Items] | ||
Total principal amount of long-term debt | $ 306,250 | $ 295,000 |
Less unamortized debt issuance costs | (2,014) | (2,247) |
Total long-term debt, net | 304,236 | 292,753 |
Less current portion | (7,500) | (7,500) |
Total long-term debt, less current portion, net | 296,736 | 285,253 |
Term Loan | ||
Line Of Credit Facility [Line Items] | ||
Total principal amount of long-term debt | 146,250 | 150,000 |
Revolving Credit Facility | ||
Line Of Credit Facility [Line Items] | ||
Total principal amount of long-term debt | $ 160,000 | $ 145,000 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Oct. 29, 2021 | Jul. 01, 2022 | Dec. 31, 2021 | |
Line Of Credit Facility [Line Items] | |||
Principal amount of long-term debt | $ 306,250 | $ 295,000 | |
Term Loan | |||
Line Of Credit Facility [Line Items] | |||
Principal amount of long-term debt | 146,250 | 150,000 | |
Revolving Credit Facility | |||
Line Of Credit Facility [Line Items] | |||
Principal amount of long-term debt | $ 160,000 | $ 145,000 | |
Credit Agreement | |||
Line Of Credit Facility [Line Items] | |||
Description of interest rate | The Base Rate is equal to the higher of i) the Prime Rate, ii) the Federal Funds Rate plus 0.5%, or iii) the BSBY Rate plus 1.00%. The applicable margin on Base Rate and BSBY Rate loans is 0.375‑1.375% and 1.375‑2.375% per annum, respectively, depending on our leverage ratio. | ||
Credit Agreement | Federal Funds Effective Rate | |||
Line Of Credit Facility [Line Items] | |||
Basis spread on variable rate | 0.50% | ||
Credit Agreement | BSBY Rate | |||
Line Of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1% | ||
Frequency of interest payment | last day of the applicable interest period, or quarterly for applicable interest periods longer than 3 months | ||
Credit Agreement | Base Rate | |||
Line Of Credit Facility [Line Items] | |||
Frequency of interest payment | quarterly | ||
Credit Agreement | Maximum | BSBY Rate | |||
Line Of Credit Facility [Line Items] | |||
Additional basis spread on variable rate | 2.375% | ||
Credit Agreement | Maximum | Base Rate | |||
Line Of Credit Facility [Line Items] | |||
Additional basis spread on variable rate | 1.375% | ||
Credit Agreement | Minimum | BSBY Rate | |||
Line Of Credit Facility [Line Items] | |||
Additional basis spread on variable rate | 1.375% | ||
Credit Agreement | Minimum | Base Rate | |||
Line Of Credit Facility [Line Items] | |||
Additional basis spread on variable rate | 0.375% | ||
Credit Agreement | Term Loan | |||
Line Of Credit Facility [Line Items] | |||
Principal amount of long-term debt | $ 150,000 | ||
Credit facility, periodic principal payments | $ 1,900 | ||
Credit facility, frequency of principal payments | quarterly | ||
Credit Agreement | Term Loan | BSBY Rate | |||
Line Of Credit Facility [Line Items] | |||
Interest rate | 3.44% | ||
Credit Agreement | Revolving Credit Facility | |||
Line Of Credit Facility [Line Items] | |||
Principal amount of long-term debt | $ 250,000 | ||
Credit Agreement | Revolving Credit Facility | Maximum | |||
Line Of Credit Facility [Line Items] | |||
Percentage of commitment fee on unused portion of revolver | 0.35% | ||
Credit Agreement | Revolving Credit Facility | Minimum | |||
Line Of Credit Facility [Line Items] | |||
Percentage of commitment fee on unused portion of revolver | 0.175% | ||
Credit Agreement | Term Loan And Revolving Credit Facility | |||
Line Of Credit Facility [Line Items] | |||
Principal payments maturity date | Oct. 29, 2026 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2022 | Jun. 25, 2021 | Jul. 01, 2022 | Jun. 25, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation expense for Options, RSUs and employee share purchase rights across all plans | $ 3.5 | $ 2.7 | $ 6.4 | $ 5.1 |
The 2016 Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Award vesting description | Awards generally vest over four years, 25% on the first anniversary of the date of grant and quarterly thereafter over the remaining 3 years. | |||
Share-based compensation arrangement by share-based payment award, expiration period | 4 years | |||
Awards vesting period | 3 years | |||
Awards vesting percentage | 25% | |||
2017 Employee Stock Purchase Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Purchase price equal to percentage of fair market value of ordinary shares | 85% | |||
2017 Employee Stock Purchase Plan | Ordinary Shares | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Ordinary shares remain available for purchase | 2.3 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Option Activity (Details) - Stock Options - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jul. 01, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Weighted average exercise price per share, Outstanding, Beginning Balance | $ 23.20 |
Weighted average exercise price per share, Exercised | 21.73 |
Weighted average exercise price per share, Forfeited or expired | 23.24 |
Weighted average exercise price per share, Outstanding, Ending Balance | 23.28 |
Weighted average exercise price per share, Exercisable | $ 23.16 |
Weighted average remaining contractual term, Outstanding | 3 years 4 months 24 days |
Weighted average remaining contractual term, Exercisable | 3 years 1 month 6 days |
Aggregate intrinsic value, Outstanding | $ 556 |
Aggregate intrinsic value, Exercisable | $ 519 |
Service Condition | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Stock Options, Outstanding, Beginning Balance | 921,469 |
Number of Stock Options, Exercised | (47,768) |
Number of Stock Options, Forfeited or expired | (21,775) |
Number of Stock Options, Outstanding, Ending Balance | 851,926 |
Number of Stock Options, Exercisable | 663,985 |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of RSU Activity (Details) | 6 Months Ended |
Jul. 01, 2022 $ / shares shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Weighted average grant date fair value per share, Unvested, Beginning Balance | $ / shares | $ 37.05 |
Weighted average grant date fair value per share, Granted | $ / shares | 27.49 |
Weighted average grant date fair value per share, Vested | $ / shares | 36.03 |
Weighted average grant date fair value per share, Forfeited | $ / shares | 33.20 |
Weighted average grant date fair value per share, Unvested, Ending Balance | $ / shares | $ 31.31 |
Service Condition | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Restricted Share Units, Unvested, Beginning Balance | 559,310 |
Number of Restricted Share Units, Granted | 556,600 |
Number of Restricted Share Units, Vested | (138,437) |
Number of Restricted Share Units, Forfeited | (58,923) |
Number of Restricted Share Units, Unvested, Ending Balance | 918,550 |
Performance Condition | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Restricted Share Units, Unvested, Beginning Balance | 9,716 |
Number of Restricted Share Units, Granted | 47,846 |
Number of Restricted Share Units, Unvested, Ending Balance | 57,562 |
Market Condition | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Restricted Share Units, Unvested, Beginning Balance | 14,572 |
Number of Restricted Share Units, Granted | 71,770 |
Number of Restricted Share Units, Unvested, Ending Balance | 86,342 |
Earnings per Share - Computatio
Earnings per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2022 | Jun. 25, 2021 | Jul. 01, 2022 | Jun. 25, 2021 | |
Earnings Per Share Basic And Diluted [Line Items] | ||||
Net income | $ 21,537 | $ 22,865 | $ 29,576 | $ 37,503 |
Basic weighted average ordinary shares outstanding | 28,665,930 | 28,180,821 | 28,629,280 | 28,092,535 |
Diluted weighted average ordinary shares outstanding | 29,042,519 | 29,092,521 | 28,948,055 | 28,942,902 |
Securities excluded from the calculation of diluted weighted average ordinary shares outstanding | 721,000 | 185,000 | 915,000 | 185,000 |
Net income: | ||||
Basic | $ 0.75 | $ 0.81 | $ 1.03 | $ 1.33 |
Diluted | $ 0.74 | $ 0.79 | $ 1.02 | $ 1.30 |
Options | ||||
Earnings Per Share Basic And Diluted [Line Items] | ||||
Dilutive effect of shares | 148,160 | 601,871 | 215,582 | 550,059 |
RSUs | ||||
Earnings Per Share Basic And Diluted [Line Items] | ||||
Dilutive effect of shares | 228,107 | 298,499 | 102,871 | 288,978 |
ESPP | ||||
Earnings Per Share Basic And Diluted [Line Items] | ||||
Dilutive effect of shares | 322 | 11,330 | 322 | 11,330 |
Segment Information - Additiona
Segment Information - Additional Information (Details) $ in Millions | 6 Months Ended | |
Jul. 01, 2022 USD ($) Segment | Dec. 31, 2021 USD ($) | |
Segment Reporting [Abstract] | ||
Number of operating segment | Segment | 1 | |
Foreign long-lived assets, exclusive of deferred tax assets | $ | $ 42.2 | $ 38.4 |
Segment Information - Schedule
Segment Information - Schedule of Sales By Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2022 | Jun. 25, 2021 | Jul. 01, 2022 | Jun. 25, 2021 | |
Segment Reporting Information [Line Items] | ||||
Total net sales | $ 329,560 | $ 282,308 | $ 622,706 | $ 546,874 |
United States of America | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 158,374 | 137,747 | 300,844 | 276,881 |
Singapore | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 114,398 | 101,214 | 217,693 | 187,538 |
Europe | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 24,806 | 22,439 | 49,198 | 39,769 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | $ 31,982 | $ 20,908 | $ 54,971 | $ 42,686 |