Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Feb. 22, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | NANOMETRICS INC | ||
Entity Central Index Key | 704,532 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 29, 2018 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | NANO | ||
Current Fiscal Year End Date | --12-29 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 24,463,681 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 787.4 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 110,951 | $ 34,899 |
Marketable securities | 40,841 | 82,130 |
Accounts receivable, net of allowances of $170 and $126, respectively | 50,854 | 62,457 |
Inventories | 61,915 | 52,860 |
Inventories-delivered systems | 180 | 1,534 |
Prepaid expenses and other | 6,140 | 6,234 |
Total current assets | 270,881 | 240,114 |
Property, plant and equipment, net | 47,900 | 44,810 |
Goodwill | 26,372 | 10,232 |
Intangible assets, net | 27,326 | 2,206 |
Deferred income tax assets | 2,569 | 11,924 |
Other assets | 582 | 413 |
Total assets | 375,630 | 309,699 |
Current liabilities: | ||
Accounts payable | 16,540 | 13,857 |
Accrued payroll and related expenses | 21,658 | 12,901 |
Deferred revenue | 8,990 | 7,408 |
Other current liabilities | 9,421 | 7,249 |
Income taxes payable | 3,164 | 2,680 |
Total current liabilities | 59,773 | 44,095 |
Deferred revenue | 1,753 | 1,661 |
Income taxes payable | 871 | 860 |
Deferred tax liability | 162 | 179 |
Other long-term liabilities | 219 | 521 |
Total liabilities | 62,778 | 47,316 |
Commitments and contingencies (Note 10) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 3,000,000 shares authorized; no shares issued or outstanding | 0 | 0 |
Common stock, $0.001 par value, 47,000,000 shares authorized: 24,372,193 and 24,628,722, respectively, issued and outstanding | 24 | 26 |
Additional paid-in capital | 247,983 | 255,368 |
Retained Earnings | 67,402 | 9,113 |
Accumulated other comprehensive income | (2,557) | (2,124) |
Total stockholders’ equity | 312,852 | 262,383 |
Total liabilities and stockholders’ equity | $ 375,630 | $ 309,699 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Statement Of Financial Position [Abstract] | ||
Allowances for doubtful accounts | $ 170 | $ 126 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 3,000,000 | 3,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 47,000,000 | 47,000,000 |
Common stock, shares issued | 24,372,193 | 24,628,722 |
Common stock, shares outstanding | 24,372,193 | 24,628,722 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Net revenues: | |||
Total net revenues | $ 324,523 | $ 258,621 | $ 221,129 |
Costs of net revenues: | |||
Amortization of intangible assets | 284 | 206 | 1,454 |
Total costs of net revenues | 140,429 | 121,920 | 107,005 |
Gross profit | 184,094 | 136,701 | 114,124 |
Operating expenses: | |||
Research and development | 48,188 | 36,716 | 31,443 |
Selling | 37,528 | 30,839 | 30,181 |
General and administrative | 31,795 | 26,340 | 23,381 |
Amortization of intangible assets | 96 | 24 | |
Total operating expenses | 117,607 | 93,895 | 85,029 |
Income from operations | 66,487 | 42,806 | 29,095 |
Other income (expense): | |||
Interest income | 10 | 8 | 35 |
Interest expense | (331) | (92) | (285) |
Other income, net | 1,358 | 576 | 290 |
Total other income, net | 1,037 | 492 | 40 |
Income before income taxes | 67,524 | 43,298 | 29,135 |
Provision for (benefit from) income taxes | 9,876 | 13,096 | (14,900) |
Net income | $ 57,648 | $ 30,202 | $ 44,035 |
Net income per share: | |||
Basic (in dollars per share) | $ 2.39 | $ 1.19 | $ 1.79 |
Diluted (in dollars per share) | $ 2.34 | $ 1.17 | $ 1.75 |
Weighted average shares used in per share calculation: | |||
Basic (in shares) | 24,120 | 25,334 | 24,655 |
Diluted (in shares) | 24,600 | 25,919 | 25,153 |
Products [Member] | |||
Net revenues: | |||
Total net revenues | $ 275,286 | $ 214,877 | $ 185,066 |
Costs of net revenues: | |||
Cost of products and service | 112,834 | 100,910 | 85,391 |
Service [Member] | |||
Net revenues: | |||
Total net revenues | 49,237 | 43,744 | 36,063 |
Costs of net revenues: | |||
Cost of products and service | $ 27,311 | $ 20,804 | $ 20,160 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income (loss) | $ 57,648 | $ 30,202 | $ 44,035 |
Other comprehensive income (loss): | |||
Change in foreign currency translation adjustment | (482) | 4,170 | (869) |
Employee benefit plan adjustment | (259) | (160) | (17) |
Net change on unrealized gains (losses) on available-for-sale investments | 308 | (88) | 42 |
Other comprehensive income (loss): | (433) | 3,922 | (844) |
Comprehensive income (loss) | $ 57,215 | $ 34,124 | $ 43,191 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings / (Accumulated Deficit) | Accumulated Other Comprehensive Income |
Beginning Balance Value at Dec. 26, 2015 | $ 187,328 | $ 24 | $ 258,715 | $ (66,209) | $ (5,202) |
Beginning Balance Shares at Dec. 26, 2015 | 24,224,286 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 44,035 | 44,035 | |||
Employee benefit plan adjustment | (17) | (17) | |||
Foreign currency translation adjustments | (869) | (869) | |||
Unrealized gain (loss) on investments, net of tax | 42 | 42 | |||
Issuance of common stock under stock-based compensation plans | 6,625 | $ 1 | 6,624 | ||
Issuance of common stock under stock-based compensation plans, Shares | 846,603 | ||||
Stock-based compensation expense | 7,666 | 7,666 | |||
Excess tax benefit related to stock options | (1,036) | (1,036) | |||
Ending Balance Value at Dec. 31, 2016 | 243,774 | $ 25 | 271,969 | (22,174) | (6,046) |
Ending Balance Shares at Dec. 31, 2016 | 25,070,889 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 30,202 | 30,202 | |||
Adjustment due to adoption of ASU | Accounting Standards Update 2016-09 [Member] | 1,224 | 139 | 1,085 | ||
Employee benefit plan adjustment | (160) | (160) | |||
Foreign currency translation adjustments | 4,170 | 4,170 | |||
Unrealized gain (loss) on investments, net of tax | (88) | (88) | |||
Issuance of common stock under stock-based compensation plans | 1,441 | $ 1 | 1,440 | ||
Issuance of common stock under stock-based compensation plans, Shares | 623,681 | ||||
Stock-based compensation expense | 8,819 | 8,819 | |||
Repurchases and retirement of common stock under share repurchase plans | $ (26,999) | (26,999) | |||
Repurchases and retirement of common stock under share repurchase plans, Shares | (1,065,848) | (1,065,848) | |||
Ending Balance Value at Dec. 30, 2017 | $ 262,383 | $ 26 | 255,368 | 9,113 | (2,124) |
Ending Balance Shares at Dec. 30, 2017 | 24,628,722 | 24,628,722 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 57,648 | 57,648 | |||
Adjustment due to adoption of ASU | Accounting Standards Update 2014-09 [Member] | 725 | 725 | |||
Employee benefit plan adjustment | (259) | (259) | |||
Foreign currency translation adjustments | (482) | (482) | |||
Unrealized gain (loss) on investments, net of tax | 308 | 308 | |||
Restructuring of foreign subsidiaries | (84) | (84) | |||
Issuance of common stock under stock-based compensation plans | 218 | 218 | |||
Issuance of common stock under stock-based compensation plans, Shares | 514,541 | ||||
Stock-based compensation expense | 11,382 | 11,382 | |||
Stock issued to acquire 4D Technology | 4,000 | 4,000 | |||
Stock issued to acquire 4D Technology, Shares | 125,117 | ||||
Repurchases and retirement of common stock under share repurchase plans | $ (22,987) | $ (2) | (22,985) | ||
Repurchases and retirement of common stock under share repurchase plans, Shares | (896,187) | (896,187) | |||
Ending Balance Value at Dec. 29, 2018 | $ 312,852 | $ 24 | $ 247,983 | $ 67,402 | $ (2,557) |
Ending Balance Shares at Dec. 29, 2018 | 24,372,193 | 24,372,193 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 57,648 | $ 30,202 | $ 44,035 |
Reconciliation of net income to net cash provided by operating activities: | |||
Depreciation and amortization | 6,846 | 6,920 | 8,295 |
Stock-based compensation | 11,382 | 8,819 | 7,666 |
Excess tax benefit from equity awards | 1 | 1,036 | |
(Gain) loss on disposal of fixed assets | (759) | 631 | 478 |
Inventory write-down | 3,012 | 2,020 | 2,110 |
Deferred income taxes | 3,732 | 6,858 | (16,783) |
Changes in fair value of contingent payments to Zygo Corporation | (1,175) | ||
Changes in assets and liabilities: | |||
Accounts receivable | 15,156 | (19,523) | (2,707) |
Inventories | (8,962) | (18,037) | 4,526 |
Inventories-delivered systems | 1,354 | 923 | 399 |
Prepaid expenses and other | (407) | (230) | 905 |
Accounts payable, accrued and other liabilities | 11,438 | 1,049 | 2,462 |
Deferred revenue | 2,399 | (915) | (3,634) |
Income taxes payable | 496 | 1,886 | (1,928) |
Net cash provided by operating activities | 103,336 | 20,603 | 45,685 |
Cash flows from investing activities: | |||
Payment for acquisition of certain assets | (2,000) | (2,000) | |
Payments to acquire 4D Technology, net of cash acquired | (37,163) | ||
Sales of marketable securities | 56,279 | 53,030 | 5,955 |
Maturities of marketable securities | 38,700 | 77,250 | 38,775 |
Purchases of marketable securities | (53,523) | (129,766) | (82,864) |
Purchases of property, plant and equipment | (7,486) | (5,204) | (3,999) |
Proceeds from sale of property, plant and equipment | 942 | ||
Net cash used in investing activities | (4,251) | (6,690) | (42,133) |
Cash flows from financing activities: | |||
Payments to Zygo Corporation related to acquisition | (315) | ||
Proceeds from sale of shares under employee stock option plans and purchase plan | 3,826 | 5,576 | 8,447 |
Excess tax benefit from equity awards | (1,036) | ||
Taxes paid on net issuance of stock awards | (3,609) | (4,135) | (1,822) |
Repurchases of common stock under share repurchase plans | (22,987) | (26,999) | |
Net cash provided by (used in) financing activities | (22,770) | (25,558) | 5,274 |
Effect of exchange rate changes on cash and cash equivalents | (263) | (518) | 82 |
Net increase (decrease) in cash and cash equivalents | 76,052 | (12,163) | 8,908 |
Cash and cash equivalents, beginning of period | 34,899 | 47,062 | 38,154 |
Cash and cash equivalents, end of period | 110,951 | 34,899 | 47,062 |
Supplemental disclosure of cash flow information: | |||
Cash paid for income taxes, net | 5,561 | 3,040 | 3,767 |
Supplemental disclosure of non-cash investing activities: | |||
Transfers between inventory and property, plant and equipment, net | 1,147 | 2,451 | 2,345 |
Unpaid property, plant and equipment at year end | $ 531 | $ 957 | $ 683 |
Nature of Business, Basis of Pr
Nature of Business, Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Dec. 29, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of Business, Basis of Presentation and Significant Accounting Policies | Note 1. Nature of Business, Basis of Presentation and Significant Accounting Policies Description of Business – Nanometrics Incorporated (“Nanometrics” or the “Company”) and its wholly-owned subsidiaries provide advanced, high-performance process control metrology and inspection systems used primarily in the fabrication of semiconductors and other solid-state devices as well as industrial and scientific applications. Nanometrics' metrology systems precisely measure a wide range of film types deposited on substrates during manufacturing to control manufacturing processes and increase production yields in the fabrication of integrated circuits. The Company’s OCD technology is a patented critical dimension measurement technology that is used to precisely determine the dimensions on the semiconductor wafer that directly control the resulting performance of the integrated circuit devices. The thin film metrology systems use a broad spectrum of wavelengths, high-sensitivity optics, proprietary software, and patented technology to measure the thickness and uniformity of films deposited on silicon and other substrates as well as their chemical composition. The overlay metrology systems are used to measure the overlay accuracy of successive layers of semiconductor patterns on wafers in the photolithography process. Nanometrics' inspection systems are used to find defects on patterned and unpatterned wafers at nearly every stage of the semiconductor production flow. The corporate headquarters of Nanometrics is in Milpitas, California. Basis of Presentation – The consolidated financial statements include Nanometrics Incorporated and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Fiscal Year – The Company utilizes a 52/53 week fiscal year ending on the last Saturday of the calendar year. For the fiscal years ended December 29, 2018, December 30, 2017, and December 31, 2016, the period presented consisted of a 52-week year, 52-week year and 53-week year, respectively. Use of Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S. 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 revenues and expenses during the reported period. Actual results could differ materially from those estimates. Estimates are used for, but not limited to, revenue recognition, the provision for doubtful accounts, the provision for excess, obsolete, or slow-moving inventories, valuation of intangible and long-lived assets, warranty accruals, income taxes, valuation of stock-based compensation, and contingencies. Foreign Currency Translation – The assets and liabilities of foreign subsidiaries are translated from their respective local functional currencies at exchange rates in effect at the balance sheet date and income and expense accounts are translated at average exchange rates during the reporting period. Resulting translation adjustments are reflected in “Accumulated other comprehensive income,” a component of stockholders’ equity. Foreign currency transaction gains and losses, as well as remeasurement of assets and liabilities denominated in a currency other than the functional currency are reflected in “Other income (expense)” in the consolidated statements of operations in the period incurred, and consist of losses of $1.1 million, $0.6 million, and $0.4 million for the years ended December 29, 2018, December 30, 2017, and December 31, 2016, respectively Revenue Recognition – The Company derives revenue from the sale of process control metrology and inspection systems and related upgrades (“product revenue”) as well as spare part sales, billable service and service contracts (together “service revenue”). Upgrades are system software and hardware performance upgrades that extend the features and functionality of a product. Upgrades are included in product revenue, which consists of sales of complete, advanced process control metrology and inspection systems (the “system(s)”). Nanometrics’ systems consist of hardware and software components that function together to deliver the essential functionality of the system. Arrangements for sales of systems and upgrades often include defined customer-specified acceptance criteria. The Company recognizes revenue when control of a good or service has transferred to a customer. The amount of revenue recognized reflects the amount which Nanometrics expects to be entitled to in exchange for the transfer of the goods or services in a contract with a customer. Revenue excludes amounts collected on behalf of third parties including taxes assessed by governmental authorities that are both imposed on and concurrent with a specific revenue producing transaction. Shipping and handling costs associated with outbound freight both before and after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of revenues. Nanometrics records revenue on a gross basis, rather than net, as it acts as the principal in all its contractual arrangements and not as an agent. Nanometrics follows a 5-Step process to evaluate its contracts with customers to determine the amount and timing of revenue recognition. Nanometrics first identifies whether a legally enforceable contract with a customer exists. A legally enforceable contract creates enforceable rights and obligations on both parties. Nanometrics evaluates the following criteria in its evaluation and if all criteria are not met, a contract does not exist and any revenue that otherwise would be recorded because a good or service had been transferred to a customer is deferred until such time that a contract exists: (1) both Nanometrics and the customer have approved the contract and are committed to perform, (2) Nanometrics can identify each party’s rights regarding the goods or services to be transferred, (3) Nanometrics can identify the payment terms for the goods or services to be delivered, (4) the contract has commercial substance, and (5) it is probable that Nanometrics will collect substantially all of the consideration to which it will be entitled in exchange for the goods or services that will be transferred to the customer. Historically, the Company has not experienced Customer payment defaults that would lead it to conclude that it does not have a contract under the new standard. Nanometrics evidences all its contracts in writing and the identification of the contract may include (1) reference to a master agreement that governs for multiple years, (2) a Volume Purchase Agreement that generally governs for 12 months and is negotiated with the larger customers to establish pricing for a committed volume of business, or (3) purchase orders which often govern the purchase of a single system or service item. Once the contract has been identified, Nanometrics evaluates the promises in the contract to identify performance obligations. Many of the contracts include more than one performance obligation – for example the delivery of a system generally includes the promise to install the system in the customer’s facility. Additionally, a contract could include the purchase of multiple systems or the purchase of a system and an upgrade. Promises in contracts which do not result in the transfer of a good or service are not performance obligations, as well as those promises that are administrative in nature, or are immaterial in the context of the contract. Generally, Nanometrics performance obligations can be categorized as (1) systems – including refurbished systems, (2) installation obligations, (3) hardware upgrades, (4) non-operating system software options / upgrades, (5) spare parts, (6) service contracts, (7) billable services and (8) other miscellaneous service items. Once the performance obligations in the contract have been identified, Nanometrics estimates the transaction price of the contract. The estimate includes amounts that are fixed as well as those that can vary based on contractual terms (e.g., performance bonuses/penalties, amounts payable to customers, rebates, prompt payment discounts, etc.) These variable consideration items are rare as most Nanometrics contracts include only fixed amounts. It is expected that estimates of variable consideration will be immaterial for Nanometrics and would occur if customers did not meet their contractual purchase commitments and Nanometrics is entitled to recover additional contract consideration. Once the transaction price of the contract has been identified, Nanometrics allocates the transaction price to the identified performance obligations. This is done on a relative selling price basis using standalone selling prices (“SSP”). For most performance obligations, Nanometrics does not have observable SSP’s as they are not regularly sold on a standalone basis however if a performance obligation does have an observable SSP it is used for allocation purposes (e.g. spares parts are sold using a standard price list and often sold separately). Without observable SSP’s, Nanometrics estimates the SSP using a methodology which maximizes the use of observable inputs – namely a cost-plus gross margin approach. Lastly, Nanometrics records the amount allocated to each performance obligation as revenue when control of that good or service has transferred to the customer. Nanometrics first evaluates whether a good or service is transferred over time, and if it is not, then it is recorded at a point in time. For service contracts, Nanometrics records revenue based on its measurement of progress, and the best method to determine this is the percentage of the stand-ready obligation that is completed to date as this best reflects the value of the service transferred to the customer. All other items at Nanometrics are recorded at a point in time other than the service contracts with customers. The timing of satisfaction of the performance obligation to payment is dependent upon the negotiated payment terms but generally occurs within 30 to 60 days. Nanometrics evaluates the following indicators to determine the point in time at which control transfers to the Customer, and may apply judgment in this evaluation: (1) whether Nanometrics has a present right to payment, (2) whether the customer has legal title, (3) whether the customer has physical possession, (4) whether the customer has significant risks and rewards of ownership, and (5) whether customer acceptance is a formality (i.e., whether customer acceptance of the tool is reasonably assured). Typically, for new product introductions, Nanometrics defers revenue recognition until formal customer acceptance is received from the customer. In almost all other situations, there is little, or no significant judgment applied by Nanometrics in determining if control of a good or service has transferred to a customer. Additionally, for system shipments to Japan, revenue is deferred because typical contractual terms indicate that payment is not due, and title does not transfer until customer acceptance occurs. The Company warrants its products against defects in manufacturing. Upon recognition of product revenue, this assurance-type warranty is recorded as a liability for anticipated warranty costs. On occasion, customers request a warranty period longer than the Company's standard warranty. In those instances, in which extended warranty services are separately quoted to the customer or if the warranty includes services beyond just an assurance that the product will work as intended, an additional performance obligation is created, and the associated revenue is deferred and recognized as service revenue ratably over the term of the extended warranty period. The portion of service contracts and extended warranty services agreements that are uncompleted at the end of any reporting period are included in deferred revenue. Frequently, the Company delivers products and various services in a single transaction. The Company's deliverables consist of tools, installation, upgrades, billable services, spare parts, and service contracts. The Company's typical multi-element arrangements include a sale of one or multiple tools that include installation and standard warranty. Other arrangements consist of a sale of tools bundled with service elements or delivery of different types of services. The Company's tools, upgrades, and spare parts are generally delivered to customers within a period of up to six months from order date. Installation is usually performed soon after delivery of the tool. The portion of revenue associated with installation is deferred based on relative selling price and that revenue is recognized upon completion of the installation and receipt of final acceptance. Billable services are billed on a time and materials basis and performed as requested by customers. Under service contract arrangements, services are provided as needed over the fixed arrangement term, with terms normally up to twelve months. The Company does not grant its customers a general right of return or any refund terms and may impose a penalty on orders cancelled prior to the scheduled shipment date. Consideration received from customers for cancelled orders is rare as orders are typically not cancelled once placed. When performance obligations are not transferred to a customer at the end of a reporting period, the amount allocated to those performance obligations is deferred until control of these performance obligations is transferred to the customer. If performance obligations cannot be accounted for as separate units of accounting, the entire arrangement is accounted for as a single unit of accounting and revenue is deferred until all elements are delivered and all revenue recognition requirements are met. These liabilities arising from contracts with customers are reported as Deferred Revenue in the consolidated balance sheet. The amount of revenue recognized in the twelve months ended December 29, 2018 that was included in the contract liability balance as of the beginning of the year was $5.2 million. Generally, all contracts have expected durations of one year or less. Accordingly, Nanometrics applies the practical expedient allowed for in U.S. GAAP and does not disclose information about remaining performance obligations that have original expected durations of one year or less. Nanometrics incurs costs related to the acquisition of its contract with customers in the form of sales commissions. Sales commissions are paid to the internal direct sales team as well as to third-party representatives, and distributors. Contractual agreements, with each of these parties, outline commissions structures and rates to be paid. Generally, the contracts are all individual procurement decisions by the customers and are not for significant periods of time, nor do they include renewal provisions. As such, most of the contracts have an economic life of significantly less than a year, although some volume purchase agreements might extend beyond 12 months (the capitalization and amortization of commission costs for contracts that extend beyond one year is immaterial for Nanometrics). Accordingly, the Company expenses these contract acquisition costs in accordance with the practical expedient outlined in U.S. GAAP when the underlying contract asset is less than one year. Nanometrics does not incur any costs to fulfill the contracts with customers that is not already reported in compliance with another applicable standard (for example, inventory or plant, property and equipment). Given the nature of the systems, the Company does not have costs which are separately identifiable to just a particular contract (for example, dedicated labs). Nanometrics records accounts receivable when revenue has been recorded and the amount due from the customer is reasonably assured and unconditionally due. In certain situations, Nanometrics may record revenue because goods or services have been transferred to the customer, but the amount is not unconditionally due. In these situations, a contract asset is reflected in the consolidated balance sheet (Unbilled A/R). This amount is subsequently reported as accounts receivable when the condition that made the amount conditional is resolved (for example, when the final installation obligation is completed, and Nanometrics has recorded revenue for the delivery of the system in an amount larger than what has been invoiced). The balance of contract assets included in Accounts Receivable upon adoption of ASC 606 at December 30, 2017 and at December 29, 2018 was $4.3 million and $2.2 million respectively. The decrease was primarily driven by changes in customer mix and timing of customer acceptance. The following tables summarize the impacts of Topic 606 adoption on the Company’s financial statements for the twelve months ended December 29, 2018 (in thousands, except per share data): Twelve Months Ended December 29, 2018 As Reported Balances Without Adoption of ASC 606 Effect of Change Higher/(Lower) Net Revenue $ 324,523 $ 320,968 $ 3,555 Net Income $ 57,648 $ 55,413 $ 2,235 Net income per share: Basic $ 2.39 $ 2.30 $ 0.09 Diluted $ 2.34 $ 2.25 $ 0.09 Cash, Cash Equivalents and Marketable Securities – The Company considers all highly liquid investments with original maturities of three months or less, when purchased, to be cash equivalents. Fair Value of Financial Instruments – Financial instruments include cash and cash equivalents, accounts receivable and accounts payable. Cash equivalents are stated at fair market value based on quoted market prices. The carrying values of accounts receivable and accounts payable approximate their fair values because of the short-term maturity of these financial instruments. Derivatives – The Company enters into foreign currency forward exchange contracts to protect against currency exchange risks associated with existing assets and liabilities. A foreign currency forward exchange contract acts as a hedge by increasing in value when underlying assets decrease in value or underlying liabilities increase in value due to changes in foreign exchange rates. Conversely, a foreign currency forward exchange contract decreases in value when underlying assets increase in value or underlying liabilities decrease in value due to changes in foreign exchange rates. These forward contracts are not designated as accounting hedges, so the unrealized gains and losses are recognized in other income, net, in advance of the actual foreign currency cash flows with the fair value of these forward contracts being recorded as accrued liabilities or other current assets. The Company does not use forward contracts for trading purposes. Allowance for Doubtful Accounts – The Company maintains allowances for estimated losses resulting from the inability of its customers to make required payments. Credit limits are established through a process of reviewing the financial history and stability of its customers. Where appropriate and available, the Company obtains credit rating reports and financial statements of customers when determining or modifying their credit limits. The Company regularly evaluates the collectability of its trade receivable balances based on a combination of factors such as the length of time the receivables are past due, customary payment practices in the respective geographies and historical collection experience with customers. The Company believes that its allowance for doubtful accounts adequately reflects the risk associated with its receivables. If the financial conditions of a customer were to deteriorate, resulting in their inability to make payments, the Company may need to record additional allowances, which would result in additional general and administrative expenses being recorded for the period in which such determination was made. Inventories – Inventories are valued at standard costs, which approximates actual cost calculated on a first-in, first-out basis, not in excess of net realizable value. The Company applies judgment in determining standard rates for material burden, direct labor and overhead used in valuing inventory, and periodically reviews such rates to ensure that the rates result in an inventory valuation not in excess of net realizable value. The Company is exposed to a number of economic and industry factors that could result in portions of inventory becoming either obsolete or in excess of anticipated usage, or saleable only for amounts that are less than their carrying amounts. These factors include, but are not limited to, technological changes in the market, the Company’s ability to meet changing customer requirements, competitive pressures in products and prices, and the availability of key components from suppliers. The Company has established inventory reserves when conditions exist that suggest that inventory may be in excess of anticipated demand or is obsolete based upon assumptions about future demand for the Company’s products and market conditions. Once a reserve has been established, it is maintained until the part to which it relates is sold or is otherwise disposed of. The Company regularly evaluates its ability to realize the value of inventory based on a combination of factors including the following: historical usage rates, forecasted sales of usage, product end-of-life dates, estimated current and future market values and new product introductions. For demonstration inventory, the Company also considers the age of the inventory and potential cost to refurbish the inventory prior to sale. Demonstration inventory is amortized over its useful life and the amortization expense is included in total inventory write down on the statements of cash flows. When recorded, reserves are intended to reduce the carrying value of the Company’s inventory to its net realizable value. If actual demand for the Company’s products deteriorates, or market conditions are less favorable than those that the Company projects, additional reserves may be required. Inventories – delivered systems – The Company reflects the cost of systems that were invoiced upon shipment but deferred for revenue recognition purposes separate from its inventory held for sale as “Inventories – delivered systems.” Property, Plant and Equipment – Property, plant and equipment are stated at cost. Depreciation and amortization is computed using the straight–line method over the following estimated useful lives of the assets: Building and Improvements 5-40 years Machinery and equipment 3-10 years Furniture and fixtures 3-10 years Software 3-7 years Business combinations - We account for business combinations under the acquisition method of accounting, which requires us to recognize separately from goodwill the assets acquired and the liabilities assumed at their acquisition date fair values. While we use our best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, our estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, we record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recognized in our consolidated statements of operations. Accounting for business combinations requires our management to make significant estimates and assumptions, especially at the acquisition date including our estimates for intangible assets, contractual obligations assumed, restructuring liabilities, pre-acquisition contingencies, and contingent consideration, where applicable. Although we believe the assumptions and estimates we have made in the past have been reasonable and appropriate, they are based, in part, on historical experience and information obtained from the management of the acquired companies and are inherently uncertain. Critical estimates in valuing certain acquired intangible assets under the income approach include growth in future expected cash flows from product sales, customer contracts and acquired technologies, technology obsolescence rates, expected costs to develop in-process research and development, or IPR&D, into commercially viable products, estimated cash flows from the projects when completed and discount rates. Specific events and circumstances may occur thus affecting the accuracy or validity of such assumptions, estimates or actual results. Goodwill and Intangible Assets – Goodwill is initially recorded when the purchase price paid for an acquisition exceeds the estimated fair value of the net identified tangible and intangible assets acquired. Intangible assets with finite lives are amortized over their respective useful lives on a straight-line basis and are also evaluated annually for impairment or whenever events or circumstances occur which indicate that those assets might be impaired. Goodwill and indefinite lived assets are not amortized but tested annually for impairment. The Company’s impairment review process is completed during the fourth quarter of each year or whenever events, or circumstances occur which indicate that an impairment may have occurred. The Company assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If, after assessing the qualitative factors, the Company determines that it is not likely that the fair value of a reporting unit is less than its carrying value, then performing the two-step impairment test is unnecessary. However, if the Company concludes otherwise, then it is required to perform the first step of the two-step goodwill impairment test. The first step requires a comparison of the fair value of Nanometrics’ reporting unit to its net book value. If the fair value of the reporting unit is greater than its carrying value, then no impairment is deemed to have occurred. If the fair value is less, then the second step must be performed to determine the amount, if any, of actual impairment. Amortization of intangible assets with finite lives is computed using the straight-line method over the following estimated useful lives of the assets: Developed technology 9-10 years Customer relationships 9 years Trade name 15 years Backlog < 1 year Long-Lived Assets – The Company evaluates its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When the sum of the undiscounted future net cash flows expected to result from the use of the asset and its eventual disposition is less than its carrying amount, impairment may exist. To determine the amount of impairment, the Company compares the fair value of the asset to its carrying value. If the carrying value of the asset exceeds its fair value, an impairment loss equal to the difference is recognized. See Note 8, "Goodwill and Intangible Assets" for further details. Income Tax Assets and Liabilities – The Company accounts for income taxes such that deferred tax assets and liabilities must be recognized using enacted tax rates for the effect of temporary differences between the book and tax accounting for assets and liabilities. Also, deferred tax assets are reduced by a valuation allowance to the extent that management cannot conclude that it is more likely than not that a portion of the deferred tax asset will be realized in the future. The Company evaluates the deferred tax assets on a continuous basis throughout the year to determine whether or not a valuation allowance is appropriate. Factors used in this determination include future expected income and the underlying asset or liability which generated the temporary tax difference. The income tax provision is primarily impacted by federal statutory rates, state and foreign income taxes and changes in the valuation allowance. Product Warranties – The Company sells most of its products with a twelve-month repair or replacement warranty from the date of acceptance, which generally represents the date of shipment. The Company provides an accrual for estimated future warranty costs based upon the historical relationship of warranty costs to the cost of products sold. The estimated future warranty obligations related to product sales are reported in the period in which the related revenue is recognized. The estimated future warranty obligations are affected by the warranty periods, sales volumes, product failure rates, material usage and labor and replacement costs incurred in correcting a product failure. If actual product failure rates, material usage, labor or replacement costs differ from the Company’s estimates, revisions to the estimated warranty obligations would be required. For new product introductions where limited or no historical information exists, the Company may use warranty information from other previous product introductions to guide it in estimating the warranty accrual. The warranty accrual represents the best estimate of the amount necessary to settle future and existing claims on products sold as of the balance sheet date. The Company periodically assesses the adequacy of its recorded warranty reserve and adjusts the amounts in accordance with changes in these factors Defined Employee Benefit Plans – The Company maintains a defined benefit pension plan in Taiwan for which current service costs are charged to operations as they accrue based on services rendered by employees during the year. Pension benefit obligations are determined by using management’s actuarial assumptions, including discount rates, assumed asset rates of return, compensation increases and employee turnover rates. Net Income Per Share - Basic net income per share excludes dilution and is computed by dividing net income by the number of weighted average common shares outstanding for the period. Diluted net income per share reflects the potential dilution from outstanding dilutive stock options (using the treasury stock method), restricted stock units subject to vesting and shares issuable under the employee stock purchase plan. In applying the treasury stock method 0.5 million, 0.6 million and 0.5 million stock option shares for fiscal year 2018, 2017 and 2016, respectively, were included in the calculation of diluted shares. Certain Significant Risks and Uncertainties – Financial instruments that potentially subject us to a concentration of credit risk consist of cash, cash equivalents, marketable securities, and accounts receivable. The Company's cash and cash equivalents are primarily invested in deposit accounts and money market accounts with large financial institutions. At times, these deposits and securities may exceed federally insured limits; however, the Company has not experienced any losses on such accounts. The Company invests its cash not required for use in operations in high credit quality securities based on the Company's investment policy. The Company's investment policy provides guidelines and limits regarding credit quality, investment concentration, investment type, and maturity that the Company believes will provide liquidity while reducing risk of loss of capital. Investments are of a short-term nature and include investments in commercial paper, corporate debt securities, asset-backed securities, U.S. Treasury, U.S. Government, and U.S. Agency debt. The Company sells its products primarily to end users in the United States, Asia and Europe and, generally, does not require its customers to provide collateral or other security to support accounts receivable. Management performs ongoing credit evaluations of its customers’ financial condition and maintains an allowance for estimated potential bad debt losses. The Company’s customer base is highly concentrated and historically, a relatively small number of customers have accounted for a significant portion of its revenues. Aggregate revenue from the Company's top five largest customers in 2018, 2017 and 2016 consisted of 70%, 73% and 73%, respectively, of its total net revenues. The Company participates in a dynamic high technology industry and believes that chang |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 29, 2018 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Note 2. Recent Accounting Pronouncements Recently Adopted Accounting Standards In October 2016, the Financial Accounting Standards Board (“FASB”) issued an accounting standard update which requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. The Company adopted this standard in the first quarter of 2018 using a modified retrospective approach. The adoption did not have a material impact on the financial statements. In August 2016, the FASB issued an accounting standard which addresses eight specific cash flow classification issues. This update is effective for public companies for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted, including in an interim period. The standard is to be applied through a retrospective transition method to each period presented. If it is impracticable to apply retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. The adoption of this guidance did not have a significant impact on the Company’s consolidated statement of cash flows. In May 2014, the FASB issued an accounting standard update which requires an entity to recognize the amount of revenue to which it expects to be entitled to for transferring promised goods or services to customers. The Company applied Topic 606 using the modified retrospective method by recognizing the cumulative effect of initially applying Topic 606 as an adjustment that increased the opening balance of equity at December 31, 2017 by $0.9 million, which resulted from a decrease of $1.6 million to the opening balance of current deferred revenue, partially offset by a decrease of $0.7 million to the opening balance of inventories – delivered systems. This modified retrospective method was chosen due to the Company’s inability to review all necessary contract information to adopt the standard using the full retrospective method. Both methods are allowed per U.S. GAAP. Therefore, the comparative information has not been adjusted and continues to be reported under Topic 605. Recently Issued Accounting Standards In August 2018, the FASB issued an accounting standard update to provide additional guidance on the accounting for costs of implementation activities performed in a cloud computing arrangement. The amendments in this update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software and hosting arrangements that include an internal-use software license. The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in this update. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The amendments in this update should be applied retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company is currently evaluating the effect of this update on its consolidated financial condition and results of operations. In August 2018, the FASB issued an accounting standard update which improves the effectiveness of fair value measurement disclosures in the notes to the financial statements. The update is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Certain amendments within the update should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted. Entities are permitted to early adopt any removed or modified disclosures upon issuance of this update and delay adoption of the additional disclosures until their effective date. The adoption of this guidance is not expected to have a significant impact on the Company’s consolidated results of operations or consolidated statement of cash flows. In June 2018, the FASB issued an accounting standard update which simplifies the accounting for nonemployee share-based payment transactions. The accounting for share-based payments to nonemployees and employees will be substantially aligned because of this update. The standard is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. Early adoption is permitted, but no earlier than an entity’s adoption date of Topic 606. The adoption of this guidance is not expected to have a significant impact on the Company’s consolidated results of operations or consolidated statement of cash flows. In January 2017, the Financial Accounting Standards Board (the "FASB") issued an accounting standard update which simplifies the subsequent measurement of goodwill and removes step 2 from the goodwill impairment test. Instead, an entity should record an impairment charge based on excess of a reporting unit’s carrying amount over its fair value. The standard is effective for public companies for fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of this guidance is not expected to have a significant impact on the Company’s consolidated financial condition and results of operations. In June 2016, the FASB issued an accounting standard which requires measurement and timely recognition of expected credit losses for financial assets. The update is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The standard is to be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company is currently evaluating the effect of this update on its consolidated financial condition and results of operations. In February 2016, the FASB issued an accounting standard update which requires lessees to record a right-of-use asset and a corresponding lease liability on the balance sheet (with the exception of short-term leases). For lessees, leases will continue to be classified as either operating or financing in the income statement. The standard is effective for public companies for annual reporting periods beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company generally does not finance purchases of equipment or other capital assets but does lease some equipment and facilities. The Company established a cross-functional implementation team to evaluate and identify the impact of this update on its financial position, results of operations and cash flows. The Company has determined that it will elect all practical expedients permitted within the new standard which will allow it to not reassess whether any expired or existing contracts are or contain leases, not reassess the lease classification for any expired or existing lease, apply hindsight in determining the lease term, chose to treat separate lease components and nonlease components associated with the lease component as a single lease component, and to not reassess the initial direct costs for any existing lease. Also, the Company expects to make an accounting policy election to not recognize a lease liability or right-to-use asset for leases with a term of twelve months or less and recognize such lease payments in its Consolidated Statement of Operations as incurred. Additionally, the Company has determined that it will adopt the optional transition practical expedient thus allowing it to initially apply the new standard at the adoption date, which for the Company will be December 30, 2018. The Company anticipates recording lease liabilities and assets between $10.5 million and $12.5 million on its Consolidated Balance Sheet with no material impact to its Consolidated Statements of Operations. The Company does not anticipate any material impact to its cash flow, although the new standard does require that lease payments now be reported as a financing activity on its Consolidated Statement of Cash Flows instead of as an operating activity. |
Acquisition
Acquisition | 12 Months Ended |
Dec. 29, 2018 | |
Business Combinations [Abstract] | |
Acquisition | Note 3. Acquisition On November 15, 2018, the Company acquired 4D Technology Corporation (“4D”), a supplier of high-performance interferometric measurement inspection systems. Pursuant to the Stock Purchase Agreement (“SPA”) entered into between 4D, each of 4D’s stockholders and the Company, the Company acquired all the outstanding stock of 4D for total consideration of (a) cash of $38.7 million ($37.2 million net of cash acquired); (b) 125,117 shares of the Company’s common stock, par value $0.001 per share, valued at approximately $4 million, subject to adjustment based on the amount of cash, working capital, indebtedness, and transaction expenses of 4D (collectively, the “Purchase Price”). 4D’s Dynamic Interferometry® solutions are used in a variety of industries to provide accurate shape and surface measurement data, which provides feedback to customers of optical quality, machine finish, and surface defectivity, to improve manufacturing yield and performance. The addition of 4D’s technology will add unique technology to the Company’s portfolio, expanding its served markets with new applications in the scientific research, aerospace, industrial and optics manufacturing markets. The following table summarizes the allocation of the total purchase consideration to the initial estimated fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands): November 15, 2018 Cash and cash equivalents $ 1,414 Accounts receivable, net 4,156 Inventories 4,563 Prepaid and other current assets 104 Property and equipment 145 Accounts payable (702 ) Accrued liabilities (760 ) Deferred revenue (197 ) Deferred tax liabilities (5,408 ) Total assets acquired/liabilities assumed 3,315 Developed technology 15,500 In-process research and development 1,400 Customer relationships 4,600 Order backlog 500 Trade name 1,500 Total identified intangible assets 23,500 Total identifiable net assets 26,815 Goodwill 15,762 Total purchase consideration $ 42,577 The fair value of accounts receivable, net, consisted of gross contractual accounts receivable reduced by approximately $161 thousand for receivables not expected to be collected as of the acquisition date. The inventory acquired consisted primarily of work in process, for which fair value was measured based on determining its net realizable value as such value represents an exit price in an orderly transaction between market participants. Factors that required a significant amount of judgment in determining the net realizable value for the inventory included determining estimated selling prices, cost to complete, costs to dispose, operating profit, and discount rates, among others. Goodwill represents the excess of the consideration transferred over the preliminary estimated fair values of the assets acquired and liabilities assumed and is primarily attributable to intangible assets which are not separately recognizable, such as an assembled workforce, and anticipated synergies such as certain costs savings, operating efficiencies, and other strategic benefits projected to be achieved as a result of the 4D acquisition. Goodwill is not deductible for tax purposes. Developed technology relates to 4D’s product family and was valued using the multi-period excess earnings method under the income approach. This method reflects the present value of the projected cash flows that are expected to be generated by the developed technology less charges representing the contribution of other assets to those cash flows. The average estimated useful life of developed technologies was determined to be 9 years and was based on the technology cycle related to each developed technology, as well as the cash flows over the respective forecast period. The fair value of the in-process research and development (“IPRD”) was determined using the multi-period excess earnings method under the income approach. Such method reflects the present value of the projected cash flows that are expected to be generated by the IPRD, less costs to complete the development and charges representing the contribution of other assets to those cash flows. Customer relationships represent the fair value of future projected revenue that will be derived from sales of products to new and existing customers and was valued using the incremental cash flow method. This method reflects the present value of projected revenues to be derived from such customers less charges representing the contribution of other assets to those cash flows. The estimated useful life of the customer relationships was determined to be 9 years and was based on historical customer turnover rates. Order backlog represents the fair value of future projected revenue that will be derived from outstanding orders from customers that have not yet been shipped and was valued using the incremental cash flow method, which reflects the present value of such outstanding orders less charges representing the contribution of other assets to those cash flows. The estimated useful life of the order backlog was determined to be less than one year and was based on historical order fulfilment rates. Trade name relates to the “4D Technology” trade name and was fair valued by applying the relief-from-royalty method under the income approach. This method is based on the application of a royalty rate to forecasted revenue under the trade name. The estimated useful life of the tradename was determined to be 15 years and was based on the expected life of the trade name and the cash flows anticipated over the forecast period. Factors that required a significant amount of judgment in determining the fair value for the acquired intangible assets included estimating future cash flows, revenue and gross margin assumptions, technology lives, future operating expenses, and discount rates, among others. Finite-lived intangible assets totaled $22.1 million and have a weighted average estimated useful life of 9.25 years. The Company has determined that the estimated useful life of the acquired in-process research and development is currently indeterminant; thus, it has been categorized as indefinite and will be reviewed annually for impairment, along with the Company’s other long-lived assets with indefinite lives, unless its estimated useful life is known. The Company believes the amounts of purchased intangible assets recorded above represent the fair values of and approximate the amounts a market participant would pay for such assets as of the 4D acquisition date. The results of operations of 4D are reported in the Company’s consolidated financial statements from the date of acquisition and include $2.1 million of total net sales and $0.4 million of operating loss for the year ended December 29, 2018. The following unaudited pro forma financial information presents the combined results of operations as if the 4D acquisition had occurred at the beginning of fiscal year 2017 and is presented for informational purposes only. These results may not necessarily reflect the actual results of operations that would have been achieved, nor are they necessarily reflective of future results of operations (in thousands, except per share data). (Unaudited) Years Ended December 29, 2018 December 30, 2017 Pro forma net revenue $ 338,919 $ 271,966 Pro forma net income 57,672 29,302 Pro forma net income per share - basic $ 2.39 $ 1.16 Pro forma net income per share - diluted 2.34 1.13 The pro forma results include adjustments for depreciation and amortization, income taxes, and the incremental shares issued in connection with the acquisition. For the years ended December 29, 2018 and December 30, 2017, the pro forma results also include material nonrecurring adjustments of $3.5 million and $1.7 million, respectively, in net revenue and net income, related to sales to the Company and costs associated with those sales. The Company incurred $0.9 million of acquisition-related costs that were expensed as incurred during fiscal 2018. |
Fair Value Measurements and Dis
Fair Value Measurements and Disclosures | 12 Months Ended |
Dec. 29, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Disclosures | Note 4. Fair Value Measurements and Disclosures The Company determines the fair values of its financial instruments based on the fair value hierarchy established in FASB Accounting Standards Codification ("ASC") 820, Fair Value Measurement Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 — Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. Such unobservable inputs include an estimated discount rate used in the Company's discounted present value analysis of future cash flows, which reflects the Company's estimate of debt with similar terms in the current credit markets. As there is currently minimal activity in such markets, the actual rate could be materially different. Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The standard assumes that the transaction to sell the asset or transfer the liability occurs in the principal or most advantageous market for the asset or liability and establishes that the fair value of an asset or liability shall be determined based on the assumptions that market participants would use in pricing the asset or liability. The following tables present the Company’s assets and liabilities measured at estimated fair value on a recurring basis, excluding accrued interest components, categorized in accordance with the fair value hierarchy (in thousands), as of the following dates: December 29, 2018 December 30, 2017 Fair Value Measurements Using Input Types Fair Value Measurements Using Input Types Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 113 $ — $ — $ 113 $ 256 $ — $ — $ 256 Commercial paper — 1,993 — 1,993 — — — — Total cash equivalents 113 1,993 — 2,106 256 — — 256 Marketable securities: U.S. Government agency debt securities — — — — — 1,495 — 1,495 Certificate of deposits — 9,497 — 9,497 — 14,497 — 14,497 Commercial paper — 7,932 — 7,932 — 7,949 — 7,949 Corporate debt securities — 15,730 — 15,730 — 47,968 — 47,968 Asset backed securities — 7,682 — 7,682 — 10,221 — 10,221 Total marketable securities — 40,841 — 40,841 — 82,130 — 82,130 Total (1) $ 113 $ 42,834 $ — $ 42,947 $ 256 $ 82,130 $ — $ 82,386 (1) Excludes $108.8 million and $34.6 million held in operating accounts as of December 29, 2018, and December 30, 2017, respectively. The fair values of the marketable securities that are classified as Level 1 in the table above were derived from quoted market prices for identical assets or liabilities in active markets that the Company can access. The fair value of marketable securities that are classified as Level 2 in the table above were derived from non-binding market consensus prices that were corroborated by observable market data, quoted market prices for similar instruments, or pricing models, such as discounted cash flow techniques with all significant inputs derived from or corroborated by observable market data. There were no transfers of instruments between Level 1, Level 2 and Level 3 during the financial periods presented. Derivatives The Company uses foreign currency forward contracts to mitigate variability in gains and losses generated from the re-measurement of certain monetary assets and liabilities denominated in foreign currencies. These derivatives are carried at fair value with changes recorded in other income, net in the consolidated statements of operations. Changes in the fair value of these derivatives are largely offset by re-measurement of the underlying assets and liabilities. The derivatives have maturities of approximately 30 days. The settlement result of forward foreign currency contracts included in the fiscal year ended December 29, 2018, and December 30, 2017 was a loss of $2.5 million and a gain of $1.4 million, respectively, and these balances are included in other income, net, in the consolidated statements of operations. The following table summarizes the Company’s outstanding derivative instruments on a gross basis: December 29, 2018 December 30, 2017 Notional Amount Fair Value Notional Amount Fair Value (in millions) Asset Liability (in millions) Asset Liability Undesignated Hedges: Forward Foreign Currency Contracts Purchase $ 25.9 — — $ 27.5 — $ 0.1 Sell $ 21.8 — $ 0.2 $ 16.8 $ 0.1 — |
Cash and Investments
Cash and Investments | 12 Months Ended |
Dec. 29, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Cash and Investments | Note 5. Cash and Investments The following table presents cash, cash equivalents, and available-for-sale investments as of the following dates (in thousands): December 29, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Market Value Cash $ 108,845 $ — $ — $ 108,845 Cash equivalents: Money market funds 113 — — 113 Commercial paper 1,993 — — 1,993 Marketable securities: Certificates of deposits 9,500 — (3 ) 9,497 Commercial paper 7,933 — (1 ) 7,932 Corporate debt securities 15,788 — (58 ) 15,730 Asset-backed securities 7,706 — (24 ) 7,682 Total cash, cash equivalents, and marketable securities $ 151,878 $ — $ (86 ) $ 151,792 December 30, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Market Value Cash $ 34,643 $ — $ — $ 34,643 Cash equivalents: Money market funds 256 — — 256 Marketable securities: U.S. Government agency securities 1,500 — (5 ) 1,495 Certificates of deposits 14,498 — (1 ) 14,497 Commercial paper 7,952 — (3 ) 7,949 Corporate debt securities 48,073 — (105 ) 47,968 Asset-backed securities 10,240 — (19 ) 10,221 Total cash, cash equivalents, and marketable securities $ 117,162 $ — $ (133 ) $ 117,029 Available-for-sale marketable securities, readily convertible to cash, with maturity dates of 90 days or less are classified as cash equivalents, while those with maturity dates greater than 90 days are classified as marketable securities within short-term assets. All marketable securities as of December 29, 2018 and December 30, 2017, were available-for-sale and reported at fair value based on the estimated or quoted market prices as of the balance sheet date. Gross realized gains and losses on sale of securities are recorded in other income, net, in the Company’s statement of operations. Net realized gains for fiscal 2018, 2017, and 2016 was $1.4 million, $1.3 million and $0.5 million, respectively. Unrealized gains or losses, net of tax effect, are recorded in accumulated other comprehensive income (loss) within stockholders' equity. Both the gross unrealized gains and gross unrealized losses for the fiscal years ended December 29, 2018, and December 30, 2017 were insignificant and no marketable securities had other than temporary impairment. All marketable securities as of December 29, 2018 and December 30, 2017, had effective maturity dates of less than three years. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 29, 2018 | |
Receivables [Abstract] | |
Accounts Receivable | Note 6. Accounts Receivable The Company maintains arrangements under which eligible accounts receivable in Japan are sold without recourse to unrelated third-party financial institutions. These receivables were not included in the consolidated balance sheets as the criteria for sale treatment had been met. After a transfer of financial assets, an entity stops recognizing the financial assets when control has been surrendered. The agreement met the criteria of a true sale of these assets since the acquiring party retained the title to these receivables and had assumed the risk that the receivables will be collectible. The Company pays administrative fees as well as interest ranging from 0.62% to 1.48% based on the anticipated length of time between the date the sale is consummated, and the expected collection date of the receivables sold. The Company sold $64.3 million and $18.6 million of receivables during fiscal years ended December 29, 2018 and December 30, 2017, respectively. There were no material gains or losses on the sale of such receivables. There were no amounts due from such third-party financial institutions at December 29, 2018 and December 30, 2017. |
Financial Statement Components
Financial Statement Components | 12 Months Ended |
Dec. 29, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Financial Statement Components | Note 7. Financial Statement Components The following tables provide details of selected financial statement components as of the following dates (in thousands): At December 29, 2018 December 30, 2017 Inventories: Raw materials and sub-assemblies $ 31,434 $ 32,187 Work in process 22,383 13,498 Finished goods 8,098 7,175 Inventories 61,915 52,860 Inventories-delivered systems 180 1,534 Total inventories $ 62,095 $ 54,394 Property, plant and equipment, net: (1) Land $ 15,571 $ 15,573 Building and improvements 21,354 20,880 Machinery and equipment 39,898 36,380 Furniture and fixtures 2,551 2,420 Software 10,116 9,558 Capital in progress 6,027 4,418 Total property, plant and equipment, gross 95,517 89,229 Accumulated depreciation and amortization (47,617 ) (44,419 ) Total property, plant and equipment, net $ 47,900 $ 44,810 (1) Total depreciation and amortization expense for the years ended December 29, 2018, December 30, 2017 and December 31, 2016 was $6.5 million, $6.7 million, and $6.8 million, respectively Other Current Liabilities: Accrued warranty $ 4,379 $ 4,863 Accrued taxes 1,738 813 Customer deposits 293 — Accrued professional services 448 534 Third party commissions 1,382 76 Other 1,181 963 Total other current liabilities $ 9,421 $ 7,249 Components of Accumulated Other Comprehensive Income (Loss) Years Ended Foreign Currency Translations Defined Benefit Pension Plans Unrealized Income (Loss) on Investment Accumulated Other Comprehensive Income Balance as of December 31, 2016 $ (5,817 ) $ (227 ) $ (2 ) $ (6,046 ) Current period change 4,170 (160 ) (88 ) 3,922 Balance as of December 30, 2017 (1,647 ) (387 ) (90 ) (2,124 ) Current period change (482 ) (259 ) 308 (433 ) Balance as of December 30, 2018 $ (2,129 ) $ (646 ) $ 218 $ (2,557 ) The items above, except for unrealized income (loss) on investment, did not impact the Company’s income tax provision. The amounts reclassified from each component of accumulated other comprehensive income into income statement line items were insignificant. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 29, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 8. Goodwill and Intangible Assets The following table summarizes the activity in the Company’s goodwill during the years ended December 29, 2018 and December 30, 2017, respectively (in thousands): Amounts Balance as of December 31, 2016 $ 8,940 Foreign currency movements 1,292 Balance as of December 30, 2017 10,232 Foreign currency movements 378 4D acquisition 15,762 Balance as of December 29, 2018 $ 26,372 There were no business acquisitions made by the Company during fiscal years 2017 and 2016. Impairment - Goodwill and Long-lived Assets The Company’s impairment review process is completed during the fourth quarter of each year, or whenever events or circumstances occur that indicate that an impairment may have occurred. The goodwill impairment assessment involves three tests, Step 0, Step 1 and Step 2. The Company performs a Step 0 test, which involves an initial qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If, after assessing the qualitative factors, the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then performing the two-step impairment test is necessary. Otherwise, no further testing is necessary. The Company completed its annual goodwill impairment assessment during the fourth quarter of 2018 by first performing a Step 0 qualitative assessment. As part of this assessment, the Company considered the trading value of the Company's stock, the industry trends, and the Company's sales forecast and products plans. The Company concluded that it was more likely than not that the fair value was more than the carrying values of the Company's reporting unit and therefore did not proceed to the Step 1 goodwill impairment test. The process of evaluating the potential impairment of long-lived assets is highly subjective and requires significant judgment. In estimating the fair value of these assets, the Company made estimates and judgments about future revenues and cash flows. The Company’s forecasts were based on assumptions that are consistent with the plans and estimates the Company is using to manage its business. Changes in these estimates could change the Company’s conclusion regarding impairment of the long-lived assets and potentially result in future impairment charges for all or a portion of their balance at December 29, 2018. The Company did not record any impairment charges related to goodwill in fiscal year 2018. The Company assesses if there have been triggers that may require it to evaluate the reasonableness of the remaining estimated useful lives of its intangible assets. No such triggers were identified during fiscal year 2018. Intangible assets are recorded at cost, less accumulated amortization. The Company recorded $23.5 million of intangible assets in conjunction with its acquisition of 4D in 2018 (See Note 3 – Acquisition). Intangible assets as of December 29, 2018 and December 30, 2017 consisted of the following (in thousands): December 29, 2018 Adjusted cost Accumulated amortization Net carrying amount Developed technology $ 35,954 $ (16,532 ) $ 19,422 Customer relationships 6,531 (1,519 ) 5,012 In-Process research and development 1,400 — 1,400 Trade name 1,500 (8 ) 1,492 Total $ 45,385 $ (18,059 ) $ 27,326 December 30, 2017 Adjusted cost Accumulated amortization Net carrying amount Developed technology $ 18,887 $ (16,681 ) $ 2,206 Customer relationships 9,438 (9,438 ) — Brand names 1,927 (1,927 ) — Patented technology 2,252 (2,252 ) — Trade name 80 (80 ) — Total $ 32,584 $ (30,378 ) $ 2,206 The amortization of finite-lived intangibles is computed using the straight-line method. Estimated lives of finite-lived intangibles range from two to fifteen years. Total amortization expense for the fiscal years ended December 29, 2018, December 30, 2017 and December 31, 2016, was $0.4 million, $0.2 million and $1.5 million, respectively. There were no impairment charges related to intangible assets recorded during either the year ended December 29, 2018 or December 30, 2017. During 2018, the Company retired $16.1million of intangible assets that had been fully amortized for both book and tax purposes that were deemed to have no future utility to the Company. The estimated future amortization expense of finite intangible assets as of December 29, 2018, is as follows (in thousands): Fiscal Years Amounts 2019 2,997 2020 2,905 2021 2,905 2022 2,905 2023 2,905 Thereafter 11,309 Total future amortization expense 25,926 In-Process research and development of $1.4 million acquired in the 4D acquisition has been omitted from the above table as its estimated useful life is indeterminant at December 29, 2018. It will be tested for impairment, along with Goodwill, until its estimated useful life becomes finite. |
Warranties
Warranties | 12 Months Ended |
Dec. 29, 2018 | |
Product Warranties Disclosures [Abstract] | |
Warranties | Note 9. Warranties Product Warranty – The Company sells the majority of its products with a 12 months repair or replacement warranty from the date of acceptance or shipment date. The Company provides an accrual for estimated future warranty costs based upon the historical relationship of warranty costs to the cost of products sold. The estimated future warranty obligations related to product sales are recorded in the period in which the related revenue is recognized. The estimated future warranty obligations are affected by the warranty periods, sales volumes, product failure rates, material usage, and labor and replacement costs incurred in correcting a product failure. If actual product failure rates, material usage, labor or replacement costs were to differ from the Company’s estimates, revisions to the estimated warranty obligations would be required. For new product introductions where limited or no historical information exists, the Company may use warranty information from other previous product introductions to guide it in estimating its warranty accrual. The warranty accrual represents the best estimate of the amount necessary to settle future and existing claims on products sold as of the balance sheet date. The Company periodically assesses the adequacy of its reported warranty reserve and adjusts such amounts in accordance with changes in these factors. Components of the warranty accrual, which were included in the accompanying consolidated balance sheets with other current liabilities, were as follows (in thousands): Years Ended December 29, 2018 December 30, 2017 Balance as of beginning of period $ 4,863 $ 3,838 Accruals for warranties issued during period 4,914 5,247 Settlements during the period (5,871 ) (4,222 ) Addition of 4-D Warranty reserves 473 - Balance as of end of period $ 4,379 $ 4,863 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 29, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10. Commitments and Contingencies Intellectual Property Indemnification Obligations – The Company will, from time to time, in the normal course of business, agree to indemnify certain customers, vendors or others against third party claims that Nanometrics’ products, when used for their intended purpose(s), or the Company’s intellectual property, infringe the intellectual property rights of such third parties or other claims made against parties with whom it enters into contractual relationships. It is not possible to determine the maximum potential amount of liability under these indemnification obligations due to the limited history of prior indemnification claims and the unique facts and circumstances that are likely to be involved in each particular claim. Historically, the Company has not made payments under these obligations and believes that the estimated fair value of these agreements is immaterial. Accordingly, no liabilities have been recorded for these obligations in the accompanying consolidated balance sheets as of December 29, 2018 and December 30, 2017. Contractual Obligations – The Company maintains certain open inventory purchase agreements with its suppliers to ensure a smooth and continuous supply availability for key components. The Company’s liability under these purchase commitments is generally restricted to a forecasted time-horizon as mutually agreed upon between the parties. This forecasted time-horizon can vary among different suppliers. The Company estimates its open inventory purchase commitment as of December 29, 2018 was approximately $42.8 million. Actual expenditures will vary based upon the volume of the transactions and length of contractual service provided. In addition, the amounts paid under these arrangements may be less in the event that the arrangements are renegotiated or cancelled. The Company leases facilities and certain equipment under non-cancelable operating leases. Rent expense, which is recorded on a straight-line basis over the term of the respective lease, for 2018, 2017 and 2016 was approximately $2.1 million, $1.8 million and $1.8 million, respectively. Future minimum lease payments under its operating leases are as follows (in thousands): Operating Leases 2019 3,002 2020 1,891 2021 1,051 2022 970 2023 750 Thereafter 696 Total $ 8,360 Legal Proceedings – From time to time, the Company is subject to various legal proceedings or claims arising in the ordinary course of business. On August 2, 2017, the Company was named as defendant in a complaint filed in New Hampshire Superior Court (“Complaint”). The Complaint, brought by Optical Solutions, Inc. (“OSI”), alleges claims arising from a purported exclusive purchase contract between OSI and the Company pertaining to certain product. On September 18, 2017, the Company removed the action to the United States District Court for the District of New Hampshire. On September 25, 2017, the Company moved to transfer the Complaint to the District Court for the Northern District of California. On December 20, 2017, the Company filed its complaint against OSI in the California Superior Court for the County of Santa Clara alleging claims arising from OSI’s breach of certain purchase orders. The Company’s complaint was later removed by OSI to the Northern District of California. On May 29, 2018, the District Court of New Hampshire issued an order granting the Company’s motion to transfer OSI’s Complaint to the Northern District of California and denying the Company’s motion to dismiss the Complaint without prejudice. On June 14, 2018, OSI’s Complaint was consolidated with the Company’s complaint against OSI. On August 9, 2018, OSI filed an Amended Complaint. On September 19, 2018, the Company filed a motion to dismiss OSI’s Amended Complaint for failure to state a claim. The Company’s motion to dismiss is set to be heard on February 28, 2019. Trial has been set for May 16, 2022. The Company records a provision for a loss when it believes that it is both probable that a loss has been incurred and the amount can be reasonably estimated. Based on current information, the Company believes it does not have any probable and reasonably estimable losses related to any current legal proceedings and claims. Although it is difficult to predict the outcome of legal proceedings, the Company believes that any liability that may ultimately arise from the resolution of these ordinary course matters will not have a material adverse effect on the business, financial condition and results of operations. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 29, 2018 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Note 11. Net Income Per Share The Company presents both basic and diluted net income per share on the face of its consolidated statements of operations. Basic net income per share excludes the effect of potentially dilutive shares and is computed by dividing net income by the weighted-average number of shares of common stock outstanding for the period. Diluted net income per share is computed using the weighted-average number of shares of common stock outstanding for the period plus the effect to all potentially dilutive common shares outstanding during the period, including contingently issuable shares and certain stock options, calculated using the treasury stock method. A reconciliation of the share denominator of the basic and diluted net income per share computations is as follows (in thousands): Years Ended December 29, 2018 December 30, 2017 December 31, 2016 Weighted average common shares outstanding used in basic net income per share calculation 24,120 25,334 24,655 Potential dilutive common stock equivalents, using treasury stock method 480 585 498 Weighted average shares used in diluted net income per share calculation 24,600 25,919 25,153 For the year ended December 29, 2018, December 30, 2017, and December 31, 2016, the Company had securities outstanding which could potentially dilute basic earnings per share in the future. For the years ended December 29, 2018, December 30, 2017 and December 31, 2016, the weighted average common share equivalents consisting of stock options and restricted stock units included in the calculation of diluted net income per share were 0.5 million, 0.6 million and 0.5 million shares, respectively. |
Stockholders' Equity and Stock-
Stockholders' Equity and Stock-Based Compensation | 12 Months Ended |
Dec. 29, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stockholders' Equity and Stock-Based Compensation | Note 12. Stockholders' Equity and Stock-Based Compensation Stockholders' Equity Preferred and Common Stock The authorized capital stock of Nanometrics consists of 47,000,000 shares of common stock, par value $0.001 per share, and 3,000,000 shares of preferred stock, par value $0.001 per share. Repurchases of Common Stock On November 15, 2017 the Company’s Board of Directors authorized the repurchase of up to $50.0 million of its common stock. This plan is referred to as the Stock Repurchase Plan. The Stock Repurchase Plan was completed in February 2018. Shares repurchased and retired in the years ended December 29, 2018 and December 30, 2017 under the Stock Repurchase Plan, with the associated cost of repurchase and amount available for repurchase were as follows (in thousands, except number of shares and weighted average price per share): Fiscal Year 2018 Fiscal Year 2017 Number of shares of common stock repurchased 896,187 1,065,848 Weighted average price per share $ 25.65 $ 25.33 Total cost of repurchase $ 22,987 $ 26,999 Amount available for repurchase at end of period — $ 23,001 Stock Option Plans The Nanometrics option plans are as follows: Plan Name Participants Shares Authorized 2005 Equity Incentive Plan Employees, consultants and directors 8,292,594 2000 Employee Stock Option Plan Employees and consultants 2,450,000 2000 Director Stock Option Plan Non-employee directors 250,000 Accent Optical Technologies, Inc. Stock Incentive Plan Employees and consultants 205,003 Employee Stock Purchase Plan Under the 2003 Employee Stock Purchase Plan (“ESPP”), eligible employees can elect to have salary withholdings of up to 10% of their base compensation to purchase shares of common stock at a price equal to 85% of the lower of the market value of the stock at the beginning or end of each six-month offering period, subject to an annual statutory limitation. As of December 29, 2018, the Company had 443,694 shares remaining for issuance under the ESPP. Shares purchased under the ESPP were 70,214 shares, 122,298 shares and 212,619 shares in 2018, 2017 and 2016 at a weighted average price of $21.46, $21.19 and $14.29, respectively. Stock-based Compensation The Company measures and recognizes compensation expense for all share-based payment awards made to employees and directors including employee stock options, restricted stock units and employee stock purchases related to the Employee Stock Purchase Plan (collectively “Employee Stock Purchases”) based on estimated fair values. The fair value of share-based payment awards is estimated on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the Company's consolidated statement of operations. Valuation and Expense Information The fair value of stock-based awards to employees is calculated using the Black-Scholes option pricing model, which requires subjective assumptions, including future stock price volatility and expected time to exercise. The expected life was calculated using the simplified method allowed by the SAB 107. The risk-free rates were based on the U.S Treasury rates in effect during the corresponding period. The expected volatility was based on the historical volatility of the Company's stock price. The dividend yield reflects that the Company has not paid any cash dividends since inception and does not intend to pay any cash dividends in the foreseeable future. Forfeitures are recognized upon occurrence. These factors could change in the future, which would affect the stock-based compensation expense in future periods. The weighted-average fair value of stock-based compensation to employees is based on the single option valuation approach. The estimated fair value of stock-based compensation awards to employees is amortized over the vesting period. The weighted-average fair value calculations are based on the following average assumptions: Fiscal Year 2018 Fiscal Year 2017 Fiscal Year 2016 Employee Stock Purchase Plan: Expected life 0.5 years 0.5 years 0.5 years Volatility 52.46% 37.2% 38.7% Risk free interest rate 2.14% 0.91% 0.44% Dividends — — — Stock Options and Restricted Stock Units (“RSUs”) Stock Options No stock options were granted in fiscal years 2018, 2017 and 2016. A summary of activity of stock options is as follows: Number of Shares Outstanding (Options) Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in Thousands) Options Outstanding at December 31, 2016 440,545 $ 15.06 2.12 $ 4,405 Exercised (223,364 ) 13.35 Cancelled/Forfeited (855 ) 16.63 Outstanding at December 30, 2017 216,326 16.82 1.76 $ 1,752 Exercised (132,932 ) 17.46 Cancelled/Forfeited - - Outstanding at December 29, 2018 83,394 $ 15.80 1.19 $ 988 Exercisable at December 29, 2018 83,394 $ 15.80 1.19 $ 988 The aggregate intrinsic value in the above table represents the total pretax intrinsic value, based on the Company’s closing stock price of $27.65 as of December 29, 2018, which would have been received by the option holders had all option holders exercised their options as of that date. The total intrinsic value of options exercised during 2018, 2017 and 2016 was $2.5 million, $3.1 million and $2.7 million, respectively. The fair value of options vested during 2018 was negligible and during 2017 and 2016 was $0.3 million and $0.7 million, respectively. The following table summarizes ranges of outstanding and exercisable options as of December 29, 2018. Options Outstanding Options Exercisable Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $12.98 - $14.59 1,694 1.58 $ 14.03 1,694 $ 14.03 $14.95 - $14.95 1,025 1.49 14.95 1,025 14.95 $15.00 - $15.00 10,000 0.62 15.00 10,000 15.00 $15.61 - $15.61 2,500 1.09 15.61 2,500 15.61 $15.65 - $15.65 3,375 1.21 15.65 3,375 15.65 $15.85 - $15.85 60,000 1.20 15.85 60,000 15.85 $16.00 - $16.00 100 1.72 16.00 100 16.00 $17.33 - $17.33 2,500 1.87 17.33 2,500 17.33 $18.22 - $18.22 1,200 2.16 18.22 1,200 18.22 $18.79 - $18.79 1,000 2.24 18.79 1,000 18.79 83,394 83,394 As of December 29, 2018, the total unrecognized compensation costs related to unvested stock options was negligible. Restricted Stock Units (“RSUs”) Each RSU counts against the Company’s “2005 Equity Incentive Plan” at a ratio of one and seven tenths shares for each unit granted but represents an amount equal to the fair value of one share of the Company’s common stock. The Company granted 484,087 and 454,600 RSUs during the years ended December 29, 2018 and December 30, 2017, respectively, to key employees with vesting periods up to three years. A summary of activity for RSUs is as follows: Summary of activity for RSUs Number of RSUs Weighted Average Fair Value Outstanding RSUs as of December 31, 2016 819,785 $ 16.79 Granted 454,600 27.12 Released (387,592 ) 16.81 Cancelled (96,494 ) 19.01 Outstanding RSUs as of December 30, 2017 790,299 22.46 Granted 484,087 36.57 Released (362,762 ) 20.79 Cancelled (142,621 ) 26.44 Outstanding RSUs as of December 29, 2018 769,003 $ 31.39 As of December 29, 2018, the total unrecognized compensation costs related to RSU's was $12.5 million and is expected to be recognized as an expense over a weighted average remaining amortization period of 1.75 years. Market-Based Performance Stock Units (“PSUs”) In addition to granting RSUs that vest on the passage of time only, the Company granted PSUs to certain executives. The PSUs will vest in tranches over one, two, and three years based on the relative performance of the Company’s stock during those periods, compared to the performance of a peer group over the same period. If target stock price performance is achieved, 66.7% of the shares of the Company’s stock subject to the PSUs will vest, and up to a maximum of 100% of the shares subject to the PSUs will vest if the maximum stock price performance is achieved for each tranche. For certain shares granted in fiscal 2018, 62,500 shares are the cumulative maximum number of shares that may vest for all measurement periods. A summary of activity for PSUs is as follows: Summary of activity for PSUs Number of PSUs Weighted Average Fair Value Outstanding PSUs as of December 31, 2016 107,500 $ 9.94 Granted 122,050 20.51 Released (38,500 ) 10.41 Cancelled (61,100 ) 19.41 Outstanding PSUs as of December 30, 2017 129,950 15.60 Granted 63,133 24.45 Released (47,929 ) 12.10 Cancelled (32,991 ) 24.52 Outstanding PSUs as of December 29, 2018 112,163 $ 22.37 Valuation of PSUs On the date of grant, the Company estimated the fair value of PSUs using a Monte Carlo simulation model. The assumptions for the valuation of PSUs are summarized as follows: 2018 Award 2017 Award 2016 Award Grant Date Fair Value Per Share $20.73-$25.18 $14.57-$26.75 $ 8.52 Weighted-average assumptions/inputs: Expected Dividend — — — Range of risk-free interest rates 2.39%-2.63% 1.74%-1.84% 0.92% Range of expected volatilities for peer group 22%-66% 22%-66% 22%-93% The number of RSUs granted during fiscal year 2018 was 484,087, which counted as 822,948 shares against the 2005 Equity Incentive Plan, and the number of PSUs granted during fiscal year 2018 was 63,133, which counted as 107,327 shares against the 2005 Equity Incentive Plan. The number of RSUs cancelled during fiscal year 2018 was 142,621, which counted as 242,456 shares against the 2005 Equity Incentive Plan, and the number of PSUs cancelled during fiscal 2018 was 32,991, which counted as 56,085 shares against the 2005 Equity Incentive Plan. The number of RSUs granted during fiscal year 2017 was 454,600, which counted as 772,820 shares, and PSUs granted during fiscal year 2017 was 122,050, which counted as 207,485 against the 2005 Equity Incentive Plan. The number of RSUs cancelled during fiscal year 2017 was 96,494, which counted as 164,040 shares, and PSUs cancelled during fiscal year 2017 was 61,100, which counted as 103,870, against the 2005 Equity Incentive Plan. Each RSU represents an amount equal to the fair value of one share of the Company's common stock. A summary of activity under the Company’s stock option plans including options, RSUs and PSUs during fiscal year 2018, 2017 and 2016 and shares available for grant as of the respective period end dates, is as follows: Fiscal Year 2018 Fiscal Year 2017 Fiscal Year 2016 Shares available for grant at beginning of fiscal year 1,874,765 1,334,581 1,916,589 Additional Shares Authorized — 1,000,000 — Options - cancelled — 855 176,587 Options - expired plan shares — — (116,192 ) RSUs - granted (822,948 ) (772,820 ) (810,334 ) RSUs - cancelled 242,456 164,040 92,230 RSUs - shares issued to satisfy tax withholding obligations - 251,724 179,117 PSUs - granted (107,327 ) (207,485 ) (114,750 ) PSUs - cancelled 56,085 103,870 11,334.00 Shares available for grant at end of fiscal year 1,243,031 1,874,765 1,334,581 Stock-based Compensation Expense Stock-based compensation expense recognized during the period is based on the value of the portion of share-based payment awards that is ultimately expected to vest during the period. Effective January 1, 2017, because of the adoption of ASU No. 2016-09 “ Improvements to Employee Share-Based Payment Accounting Tax benefits resulting from tax deductions in excess of the compensation cost recognized for those options are required to be separately classified in the consolidated statements of cash flows. The Company recognized $1.0 million of excess tax benefits in fiscal year 2016, and immaterial amounts in both fiscal years 2018 and 2017, respectively. Stock-based compensation expense for all share-based payment awards made to the Company’s employees and directors pursuant to the employee stock option and employee stock purchase plans by function were as follows (in thousands): Fiscal Year 2018 Fiscal Year 2017 Fiscal Year 2016 Cost of products $ 704 $ 842 $ 403 Cost of service 772 616 509 Research and development 2,450 1,720 1,408 Selling 2,786 2,323 2,046 General and administrative 4,670 3,318 3,300 Total stock-based compensation expense related to employee stock options and employee stock purchases $ 11,382 $ 8,819 $ 7,666 |
Defined Benefit Pension Plan
Defined Benefit Pension Plan | 12 Months Ended |
Dec. 29, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Defined Benefit Pension Plan | Note 13. Defined Benefit Pension Plan Nanometrics sponsors a statutory government mandated defined benefit pension plan (the “Benefit Plan”) in Taiwan for its local employees. The fair value of plan assets was $0.3 million for fiscal year ended 2018, and $0.3 million for each of fiscal years 2017 and 2016, respectively; and the net funding deficiency of the Benefit Plan was $0.2 million, $0.5 million, and $0.4 million for the fiscal years ended December 29, 2018, December 30, 2017, and December 31, 2016, respectively. Based on the nature and limited extent of the pension plan, we determined this pension plan was not material for separate disclosure. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 14. Income Taxes Income Tax Assets and Liabilities - The Company accounts for income taxes whereby deferred tax assets and liabilities are recognized using enacted tax rates for the effect of temporary differences between the book and tax accounting for assets and liabilities. Also, deferred tax assets are reduced by a valuation allowance to the extent that management cannot conclude that it is more likely than not that a portion of the deferred tax asset will be realized in the future. The Company evaluates the deferred tax assets on a continuous basis throughout the year to determine whether or not a valuation allowance is appropriate. Factors used in this determination include future expected income and the underlying asset or liability which generated the temporary tax difference. The income tax provision is primarily impacted by federal statutory rates, state and foreign income taxes, and changes in the valuation allowance. Income (loss) before provision for income taxes consists of the following (in thousands): Years Ended December 29, 2018 December 30, 2017 December 31, 2016 Domestic $ 52,836 $ 34,238 $ 25,372 Foreign 14,688 9,060 3,763 Income (loss) before income taxes $ 67,524 $ 43,298 $ 29,135 The provision (benefit) for income taxes consists of the following (in thousands): Years Ended December 29, 2018 December 30, 2017 December 31, 2016 Current: Federal $ 616 $ 3,250 $ 697 State 142 9 85 Foreign 5,054 2,998 2,111 5,812 6,257 2,893 Deferred: Federal 3,875 6,314 (16,641 ) State (18 ) 53 (320 ) Foreign 207 472 (832 ) 4,064 6,839 (17,793 ) Provision (benefit) for income taxes $ 9,876 $ 13,096 $ (14,900 ) Significant components of the Company's deferred tax assets and liabilities are as follows (in thousands): At December 29, 2018 December 30, 2017 Deferred tax assets: Reserves and accruals $ 5,704 $ 5,797 Deferred revenue 241 240 Shared-based compensation 1,644 1,483 Tax credit carry-forwards 6,920 9,669 Net operating losses 6,022 9,755 Depreciation & amortization (7,528 ) (1,525 ) Other 532 207 Total deferred tax assets 13,535 25,626 Less: Valuation allowance (10,966 ) (13,702 ) Total deferred tax assets net of valuation allowance 2,569 11,924 Deferred tax liabilities: Depreciation & amortization (13 ) (12 ) Other (149 ) (167 ) Total deferred tax liabilities (162 ) (179 ) Net deferred tax assets $ 2,407 $ 11,745 As of December 29, 2018, the Company had net operating loss carryforwards of $23.5 million in California, $1.7 million in other states, and $18.3 million in foreign countries, which begin to expire in 2018. As of December 29, 2018, the Company had available carryforward Federal and California R&D tax credits of $5.4 million and $10.2 million, respectively. Federal R&D tax credit carryforwards begin to expire in 2034. State R&D tax credits carryforward indefinitely. During the years ended December 29, 2018, and December 30, 2017, the change in valuation allowances was ($2.7) million and $1.5 million, respectively. The decrease in the valuation allowance in 2018 was primarily related to a $4.8 million decrease from the dissolution of Nanda Technologies, a Germany based subsidiary. This amount was offset by an increase net benefit of the California deferred tax assets of $0.5 million and a $1.6 million increase from deferred tax assets in the Company’s Switzerland subsidiary. The realization of deferred tax assets is primarily dependent on the Company generating sufficient U.S. and foreign taxable income in future fiscal years. The Company regularly assesses the need for a valuation allowance against its deferred tax assets. In making that assessment, the Company considers both positive and negative evidence related to the likelihood of realization of the deferred tax assets to determine, based on the weight of available evidence, whether it is more-likely-than-not that some or all the deferred tax assets will not be realized. The Company continues to maintain valuation allowances against its California and Switzerland deferred tax assets as a result of uncertainties regarding the realization of the assets due to cumulative losses and uncertainty of future taxable income. The Company will continue to assess the realizability of the deferred tax assets in each of the applicable jurisdictions and maintain the valuation allowances until sufficient positive evidence exists to support a reversal. In the event the Company determines that the deferred tax assets are realizable, an adjustment to the valuation allowances will be reflected in the tax provision for the period such determination is made. Differences between income taxes computed by applying the statutory federal income tax rate to income (loss) before income taxes and the provision (benefit) for income taxes consist of the following (in thousands): Years Ended December 29, 2018 December 30, 2017 December 31, 2016 Income taxes computed at U.S. statutory rate $ 14,180 $ 15,153 $ 10,197 State income taxes 379 227 223 Foreign tax rate differential (2,382 ) 794 3,502 Change in valuation allowance 3,037 1,490 (25,738 ) Non-deductible equity compensation (1,241 ) (1,803 ) 380 Tax credits (3,876 ) (2,336 ) (3,191 ) Domestic production activities deduction - (608 ) (354 ) Liabilities for uncertain tax positions 12 18 67 Other, net (233 ) 161 14 Provision (benefit) for income taxes $ 9,876 $ 13,096 $ (14,900 ) As of December 29, 2018, The Company has provided U.S income taxes on all its foreign earnings. The Company continues to permanently reinvest the cash held offshore to support its working capital needs. Accordingly, no additional foreign withholding taxes that may be required from certain jurisdictions in the event of a cash distribution have been provided thereon. In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (SAB 118), which allowed the Company to record provisional amounts during a measurement period not to extend beyond one year of the enactment date. As of December 29, 2018, the Company had finalized all provisional amounts related to the Tax Act. Finalizing provisional adjustments related to the Tax Act did not have a material impact on the Company’s consolidated financial statements as of December 29, 2018. The Company expects further guidance may be forthcoming from the Financial Accounting Standards Board and the Securities and Exchange Commission, as well as regulations, interpretations and rulings from federal and state tax agencies, which could result in additional impacts. The 2017 Tax Act creates a new requirement that global intangible low-taxed income (“GILTI”) earned by controlled foreign corporations (“CFCs”) must be included currently in the gross income of the CFCs’ U.S. shareholder. Under U.S. GAAP, the Company is allowed to make an accounting policy choice of either (1) treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred (the “period cost method”) or (2) factoring such amounts into a company’s measurement of its deferred taxes (the “deferred method”). The Company’s selection of an accounting policy for 2018 with respect to the GILTI tax rules was to treat GILTI tax as a current period expense under the period cost method. The Company recognizes tax liabilities for uncertain tax positions and adjusts these liabilities when its judgment changes as a result of the evaluation of new information not previously available. Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from the Company's current estimate of the tax liabilities. These differences will be reflected as increases or decreases to income tax expense in the period in which they are determined. The accounting for uncertainty in income taxes recognized in an enterprise's financial statements prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken on a tax return, and the derecognition of tax benefits, classification on the balance sheet, interest and penalties, accounting in interim periods, disclosure, and transition. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): At December 29, 2018 December 30, 2017 December 31, 2016 Unrecognized tax benefits - beginning of the period $ 7,151 $ 6,477 $ 6,961 Gross increases-tax positions in prior period 132 32 23 Gross decreases-tax positions in prior period — — (1,193 ) Gross increases-current-period tax positions 1,000 723 686 Lapse of statute of limitations (175 ) (81 ) — Unrecognized tax benefits - end of the period $ 8,108 $ 7,151 $ 6,477 The unrecognized tax benefit at December 29, 2018, was $8.1 million, of which $4.6 million would impact the effective tax rate if recognized. The Company accrues interest and penalties related to unrecognized tax benefits in its provision for income taxes. The total amount of penalties and interest were not material as of December 29, 2018, December 30, 2017, and December 31, 2016. The Company does not expect a material change in its unrecognized tax benefits within the next 12 months. The Company is subject to taxation in the U.S. and various states including California, and the foreign jurisdictions of Korea, Japan, Taiwan, China, Singapore, Germany, France, United Kingdom, Switzerland, and Israel. Due to tax attribute carry-forwards, the Company is subject to examination for tax years 2003 forward for U.S. tax purposes. The Company was also subject to examination in various states for tax years 2002 forward. The Company is subject to examination for tax years 2010 forward for various foreign jurisdictions. |
Segment, Geographic, and Signif
Segment, Geographic, and Significant Customer Information | 12 Months Ended |
Dec. 29, 2018 | |
Segment Reporting [Abstract] | |
Segment, Geographic, and Significant Customer Information | Note 15. Segment, Geographic, and Significant Customer Information The Company has one operating segment, which is the sale, design, manufacture, marketing and support of thin film and optical critical dimension systems. The Chief Executive Officer has been identified as the Chief Operating Decision Maker (“CODM”) because he has the final authority over resource allocation decisions and performance assessment. The CODM does not receive discrete financial information about individual components of the Company's business. For the years ended December 29, 2018, December 30, 2017, and December 26, 2016, the Company recorded revenue from customers primarily in the United States, Asia and Europe. The following tables summarize total net revenues and long-lived assets (excluding intangible assets) attributed to significant countries (in thousands): Years Ended December 29, 2018 December 30, 2017 December 31, 2016 Total net revenues (1): South Korea $ 108,938 $ 94,082 $ 44,735 China 72,305 29,826 43,460 Japan 64,252 41,979 26,604 United States 29,415 33,983 29,887 Singapore 22,167 21,810 37,096 Taiwan 14,012 20,147 27,189 Other 13,434 16,794 12,158 Total net revenues $ 324,523 $ 258,621 $ 221,129 (1) Years Ended December 29, 2018 December 30, 2017 Long-lived tangible assets: United States $ 46,325 $ 43,427 Taiwan 275 510 South Korea 420 576 Japan 59 60 Singapore 618 92 All Other 203 145 Total long-lived tangible assets $ 47,900 $ 44,810 With respect to customer concentration, Samsung Electronics Co. Ltd., SK hynix, Toshiba Corporation, and Intel Corporation each accounted for more than 10% of total sales for the year ended December 29, 2018, and Samsung Electronics Co. Ltd., SK hynix, Micron Technology, Inc., Intel Corporation, and Toshiba Corporation each accounted for more than 10% of total sales for the year ended December 30, 2017, and Micron Technology, Inc., Intel Corporation, SK hynix, and Taiwan Semiconductor Manufacturing Company Limited each accounted for more than 10% of total sales for the year ended December 31, 2016. With respect to accounts receivable concentration, Toshiba Corporation and SK hynix each accounted for more than 10% of total receivables as of December 29, 2018, and Samsung Electronics Co. Ltd., Micron Technology, Inc., and Intel Corporation each accounted for more than 10% of accounts receivable as of December 30, 2017. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 29, 2018 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II - Valuation and Qualifying Accounts as of and for the years ended December 29, 2018, December 30, 2017 and December 31, 2016 Our allowance for doubtful accounts receivable consists of the following (in thousands): Year Ended Balance at beginning of period Additions to Allowance Charges Utilized/Write-offs Balance at end of period December 29, 2018 $ 126 $ 129 $ (85 ) $ 170 December 30, 2017 $ 73 $ 78 $ (25 ) $ 126 December 31, 2016 $ 150 $ — $ (77 ) $ 73 Our valuation allowance for deferred tax assets consists of the following (in thousands): Year Ended Balance at beginning of period Additions to Allowance Charges Utilized/Write-offs Balance at end of period December 29, 2018 $ 13,702 $ 470 $ (3,206 ) $ 10,966 December 30, 2017 $ 10,980 $ 2,984 $ (262 ) $ 13,702 December 31, 2016 $ 36,786 $ 1,643 $ (27,449 ) $ 10,980 |
Nature of Business, Basis of _2
Nature of Business, Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 29, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description of Business | Description of Business – Nanometrics Incorporated (“Nanometrics” or the “Company”) and its wholly-owned subsidiaries provide advanced, high-performance process control metrology and inspection systems used primarily in the fabrication of semiconductors and other solid-state devices as well as industrial and scientific applications. Nanometrics' metrology systems precisely measure a wide range of film types deposited on substrates during manufacturing to control manufacturing processes and increase production yields in the fabrication of integrated circuits. The Company’s OCD technology is a patented critical dimension measurement technology that is used to precisely determine the dimensions on the semiconductor wafer that directly control the resulting performance of the integrated circuit devices. The thin film metrology systems use a broad spectrum of wavelengths, high-sensitivity optics, proprietary software, and patented technology to measure the thickness and uniformity of films deposited on silicon and other substrates as well as their chemical composition. The overlay metrology systems are used to measure the overlay accuracy of successive layers of semiconductor patterns on wafers in the photolithography process. Nanometrics' inspection systems are used to find defects on patterned and unpatterned wafers at nearly every stage of the semiconductor production flow. The corporate headquarters of Nanometrics is in Milpitas, California. |
Basis of Presentation | Basis of Presentation – The consolidated financial statements include Nanometrics Incorporated and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Fiscal Year | Fiscal Year – The Company utilizes a 52/53 week fiscal year ending on the last Saturday of the calendar year. For the fiscal years ended December 29, 2018, December 30, 2017, and December 31, 2016, the period presented consisted of a 52-week year, 52-week year and 53-week year, respectively. |
Use of Estimates | Use of Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S. 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 revenues and expenses during the reported period. Actual results could differ materially from those estimates. Estimates are used for, but not limited to, revenue recognition, the provision for doubtful accounts, the provision for excess, obsolete, or slow-moving inventories, valuation of intangible and long-lived assets, warranty accruals, income taxes, valuation of stock-based compensation, and contingencies. |
Foreign Currency Translation | Foreign Currency Translation – The assets and liabilities of foreign subsidiaries are translated from their respective local functional currencies at exchange rates in effect at the balance sheet date and income and expense accounts are translated at average exchange rates during the reporting period. Resulting translation adjustments are reflected in “Accumulated other comprehensive income,” a component of stockholders’ equity. Foreign currency transaction gains and losses, as well as remeasurement of assets and liabilities denominated in a currency other than the functional currency are reflected in “Other income (expense)” in the consolidated statements of operations in the period incurred, and consist of losses of $1.1 million, $0.6 million, and $0.4 million for the years ended December 29, 2018, December 30, 2017, and December 31, 2016, respectively |
Revenue Recognition | Revenue Recognition – The Company derives revenue from the sale of process control metrology and inspection systems and related upgrades (“product revenue”) as well as spare part sales, billable service and service contracts (together “service revenue”). Upgrades are system software and hardware performance upgrades that extend the features and functionality of a product. Upgrades are included in product revenue, which consists of sales of complete, advanced process control metrology and inspection systems (the “system(s)”). Nanometrics’ systems consist of hardware and software components that function together to deliver the essential functionality of the system. Arrangements for sales of systems and upgrades often include defined customer-specified acceptance criteria. The Company recognizes revenue when control of a good or service has transferred to a customer. The amount of revenue recognized reflects the amount which Nanometrics expects to be entitled to in exchange for the transfer of the goods or services in a contract with a customer. Revenue excludes amounts collected on behalf of third parties including taxes assessed by governmental authorities that are both imposed on and concurrent with a specific revenue producing transaction. Shipping and handling costs associated with outbound freight both before and after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of revenues. Nanometrics records revenue on a gross basis, rather than net, as it acts as the principal in all its contractual arrangements and not as an agent. Nanometrics follows a 5-Step process to evaluate its contracts with customers to determine the amount and timing of revenue recognition. Nanometrics first identifies whether a legally enforceable contract with a customer exists. A legally enforceable contract creates enforceable rights and obligations on both parties. Nanometrics evaluates the following criteria in its evaluation and if all criteria are not met, a contract does not exist and any revenue that otherwise would be recorded because a good or service had been transferred to a customer is deferred until such time that a contract exists: (1) both Nanometrics and the customer have approved the contract and are committed to perform, (2) Nanometrics can identify each party’s rights regarding the goods or services to be transferred, (3) Nanometrics can identify the payment terms for the goods or services to be delivered, (4) the contract has commercial substance, and (5) it is probable that Nanometrics will collect substantially all of the consideration to which it will be entitled in exchange for the goods or services that will be transferred to the customer. Historically, the Company has not experienced Customer payment defaults that would lead it to conclude that it does not have a contract under the new standard. Nanometrics evidences all its contracts in writing and the identification of the contract may include (1) reference to a master agreement that governs for multiple years, (2) a Volume Purchase Agreement that generally governs for 12 months and is negotiated with the larger customers to establish pricing for a committed volume of business, or (3) purchase orders which often govern the purchase of a single system or service item. Once the contract has been identified, Nanometrics evaluates the promises in the contract to identify performance obligations. Many of the contracts include more than one performance obligation – for example the delivery of a system generally includes the promise to install the system in the customer’s facility. Additionally, a contract could include the purchase of multiple systems or the purchase of a system and an upgrade. Promises in contracts which do not result in the transfer of a good or service are not performance obligations, as well as those promises that are administrative in nature, or are immaterial in the context of the contract. Generally, Nanometrics performance obligations can be categorized as (1) systems – including refurbished systems, (2) installation obligations, (3) hardware upgrades, (4) non-operating system software options / upgrades, (5) spare parts, (6) service contracts, (7) billable services and (8) other miscellaneous service items. Once the performance obligations in the contract have been identified, Nanometrics estimates the transaction price of the contract. The estimate includes amounts that are fixed as well as those that can vary based on contractual terms (e.g., performance bonuses/penalties, amounts payable to customers, rebates, prompt payment discounts, etc.) These variable consideration items are rare as most Nanometrics contracts include only fixed amounts. It is expected that estimates of variable consideration will be immaterial for Nanometrics and would occur if customers did not meet their contractual purchase commitments and Nanometrics is entitled to recover additional contract consideration. Once the transaction price of the contract has been identified, Nanometrics allocates the transaction price to the identified performance obligations. This is done on a relative selling price basis using standalone selling prices (“SSP”). For most performance obligations, Nanometrics does not have observable SSP’s as they are not regularly sold on a standalone basis however if a performance obligation does have an observable SSP it is used for allocation purposes (e.g. spares parts are sold using a standard price list and often sold separately). Without observable SSP’s, Nanometrics estimates the SSP using a methodology which maximizes the use of observable inputs – namely a cost-plus gross margin approach. Lastly, Nanometrics records the amount allocated to each performance obligation as revenue when control of that good or service has transferred to the customer. Nanometrics first evaluates whether a good or service is transferred over time, and if it is not, then it is recorded at a point in time. For service contracts, Nanometrics records revenue based on its measurement of progress, and the best method to determine this is the percentage of the stand-ready obligation that is completed to date as this best reflects the value of the service transferred to the customer. All other items at Nanometrics are recorded at a point in time other than the service contracts with customers. The timing of satisfaction of the performance obligation to payment is dependent upon the negotiated payment terms but generally occurs within 30 to 60 days. Nanometrics evaluates the following indicators to determine the point in time at which control transfers to the Customer, and may apply judgment in this evaluation: (1) whether Nanometrics has a present right to payment, (2) whether the customer has legal title, (3) whether the customer has physical possession, (4) whether the customer has significant risks and rewards of ownership, and (5) whether customer acceptance is a formality (i.e., whether customer acceptance of the tool is reasonably assured). Typically, for new product introductions, Nanometrics defers revenue recognition until formal customer acceptance is received from the customer. In almost all other situations, there is little, or no significant judgment applied by Nanometrics in determining if control of a good or service has transferred to a customer. Additionally, for system shipments to Japan, revenue is deferred because typical contractual terms indicate that payment is not due, and title does not transfer until customer acceptance occurs. The Company warrants its products against defects in manufacturing. Upon recognition of product revenue, this assurance-type warranty is recorded as a liability for anticipated warranty costs. On occasion, customers request a warranty period longer than the Company's standard warranty. In those instances, in which extended warranty services are separately quoted to the customer or if the warranty includes services beyond just an assurance that the product will work as intended, an additional performance obligation is created, and the associated revenue is deferred and recognized as service revenue ratably over the term of the extended warranty period. The portion of service contracts and extended warranty services agreements that are uncompleted at the end of any reporting period are included in deferred revenue. Frequently, the Company delivers products and various services in a single transaction. The Company's deliverables consist of tools, installation, upgrades, billable services, spare parts, and service contracts. The Company's typical multi-element arrangements include a sale of one or multiple tools that include installation and standard warranty. Other arrangements consist of a sale of tools bundled with service elements or delivery of different types of services. The Company's tools, upgrades, and spare parts are generally delivered to customers within a period of up to six months from order date. Installation is usually performed soon after delivery of the tool. The portion of revenue associated with installation is deferred based on relative selling price and that revenue is recognized upon completion of the installation and receipt of final acceptance. Billable services are billed on a time and materials basis and performed as requested by customers. Under service contract arrangements, services are provided as needed over the fixed arrangement term, with terms normally up to twelve months. The Company does not grant its customers a general right of return or any refund terms and may impose a penalty on orders cancelled prior to the scheduled shipment date. Consideration received from customers for cancelled orders is rare as orders are typically not cancelled once placed. When performance obligations are not transferred to a customer at the end of a reporting period, the amount allocated to those performance obligations is deferred until control of these performance obligations is transferred to the customer. If performance obligations cannot be accounted for as separate units of accounting, the entire arrangement is accounted for as a single unit of accounting and revenue is deferred until all elements are delivered and all revenue recognition requirements are met. These liabilities arising from contracts with customers are reported as Deferred Revenue in the consolidated balance sheet. The amount of revenue recognized in the twelve months ended December 29, 2018 that was included in the contract liability balance as of the beginning of the year was $5.2 million. Generally, all contracts have expected durations of one year or less. Accordingly, Nanometrics applies the practical expedient allowed for in U.S. GAAP and does not disclose information about remaining performance obligations that have original expected durations of one year or less. Nanometrics incurs costs related to the acquisition of its contract with customers in the form of sales commissions. Sales commissions are paid to the internal direct sales team as well as to third-party representatives, and distributors. Contractual agreements, with each of these parties, outline commissions structures and rates to be paid. Generally, the contracts are all individual procurement decisions by the customers and are not for significant periods of time, nor do they include renewal provisions. As such, most of the contracts have an economic life of significantly less than a year, although some volume purchase agreements might extend beyond 12 months (the capitalization and amortization of commission costs for contracts that extend beyond one year is immaterial for Nanometrics). Accordingly, the Company expenses these contract acquisition costs in accordance with the practical expedient outlined in U.S. GAAP when the underlying contract asset is less than one year. Nanometrics does not incur any costs to fulfill the contracts with customers that is not already reported in compliance with another applicable standard (for example, inventory or plant, property and equipment). Given the nature of the systems, the Company does not have costs which are separately identifiable to just a particular contract (for example, dedicated labs). Nanometrics records accounts receivable when revenue has been recorded and the amount due from the customer is reasonably assured and unconditionally due. In certain situations, Nanometrics may record revenue because goods or services have been transferred to the customer, but the amount is not unconditionally due. In these situations, a contract asset is reflected in the consolidated balance sheet (Unbilled A/R). This amount is subsequently reported as accounts receivable when the condition that made the amount conditional is resolved (for example, when the final installation obligation is completed, and Nanometrics has recorded revenue for the delivery of the system in an amount larger than what has been invoiced). The balance of contract assets included in Accounts Receivable upon adoption of ASC 606 at December 30, 2017 and at December 29, 2018 was $4.3 million and $2.2 million respectively. The decrease was primarily driven by changes in customer mix and timing of customer acceptance. The following tables summarize the impacts of Topic 606 adoption on the Company’s financial statements for the twelve months ended December 29, 2018 (in thousands, except per share data): Twelve Months Ended December 29, 2018 As Reported Balances Without Adoption of ASC 606 Effect of Change Higher/(Lower) Net Revenue $ 324,523 $ 320,968 $ 3,555 Net Income $ 57,648 $ 55,413 $ 2,235 Net income per share: Basic $ 2.39 $ 2.30 $ 0.09 Diluted $ 2.34 $ 2.25 $ 0.09 |
Cash and Cash Equivalents | Cash, Cash Equivalents and Marketable Securities – The Company considers all highly liquid investments with original maturities of three months or less, when purchased, to be cash equivalents. |
Marketable Securities | Marketable securities are classified as “available-for-sale” and are reported at fair value with unrealized gains and losses reported in stockholders' equity as a component of other comprehensive income. The cost of securities sold is based on the specific identification method. The Company classifies its investments as current based on the nature of the investment and their availability for use in current operations. The Company reviews its investment portfolio quarterly to determine if any securities may be other-than-temporarily impaired due to increased credit risk, changes in industry or sector of a certain instrument or ratings downgrades. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments – Financial instruments include cash and cash equivalents, accounts receivable and accounts payable. Cash equivalents are stated at fair market value based on quoted market prices. The carrying values of accounts receivable and accounts payable approximate their fair values because of the short-term maturity of these financial instruments. |
Derivatives | Derivatives – The Company enters into foreign currency forward exchange contracts to protect against currency exchange risks associated with existing assets and liabilities. A foreign currency forward exchange contract acts as a hedge by increasing in value when underlying assets decrease in value or underlying liabilities increase in value due to changes in foreign exchange rates. Conversely, a foreign currency forward exchange contract decreases in value when underlying assets increase in value or underlying liabilities decrease in value due to changes in foreign exchange rates. These forward contracts are not designated as accounting hedges, so the unrealized gains and losses are recognized in other income, net, in advance of the actual foreign currency cash flows with the fair value of these forward contracts being recorded as accrued liabilities or other current assets. The Company does not use forward contracts for trading purposes. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts – The Company maintains allowances for estimated losses resulting from the inability of its customers to make required payments. Credit limits are established through a process of reviewing the financial history and stability of its customers. Where appropriate and available, the Company obtains credit rating reports and financial statements of customers when determining or modifying their credit limits. The Company regularly evaluates the collectability of its trade receivable balances based on a combination of factors such as the length of time the receivables are past due, customary payment practices in the respective geographies and historical collection experience with customers. The Company believes that its allowance for doubtful accounts adequately reflects the risk associated with its receivables. If the financial conditions of a customer were to deteriorate, resulting in their inability to make payments, the Company may need to record additional allowances, which would result in additional general and administrative expenses being recorded for the period in which such determination was made. |
Inventories | Inventories – Inventories are valued at standard costs, which approximates actual cost calculated on a first-in, first-out basis, not in excess of net realizable value. The Company applies judgment in determining standard rates for material burden, direct labor and overhead used in valuing inventory, and periodically reviews such rates to ensure that the rates result in an inventory valuation not in excess of net realizable value. The Company is exposed to a number of economic and industry factors that could result in portions of inventory becoming either obsolete or in excess of anticipated usage, or saleable only for amounts that are less than their carrying amounts. These factors include, but are not limited to, technological changes in the market, the Company’s ability to meet changing customer requirements, competitive pressures in products and prices, and the availability of key components from suppliers. The Company has established inventory reserves when conditions exist that suggest that inventory may be in excess of anticipated demand or is obsolete based upon assumptions about future demand for the Company’s products and market conditions. Once a reserve has been established, it is maintained until the part to which it relates is sold or is otherwise disposed of. The Company regularly evaluates its ability to realize the value of inventory based on a combination of factors including the following: historical usage rates, forecasted sales of usage, product end-of-life dates, estimated current and future market values and new product introductions. For demonstration inventory, the Company also considers the age of the inventory and potential cost to refurbish the inventory prior to sale. Demonstration inventory is amortized over its useful life and the amortization expense is included in total inventory write down on the statements of cash flows. When recorded, reserves are intended to reduce the carrying value of the Company’s inventory to its net realizable value. If actual demand for the Company’s products deteriorates, or market conditions are less favorable than those that the Company projects, additional reserves may be required. Inventories – delivered systems – The Company reflects the cost of systems that were invoiced upon shipment but deferred for revenue recognition purposes separate from its inventory held for sale as “Inventories – delivered systems.” |
Property, Plant and Equipment | Property, Plant and Equipment – Property, plant and equipment are stated at cost. Depreciation and amortization is computed using the straight–line method over the following estimated useful lives of the assets: Building and Improvements 5-40 years Machinery and equipment 3-10 years Furniture and fixtures 3-10 years Software 3-7 years |
Business Combinations | Business combinations - We account for business combinations under the acquisition method of accounting, which requires us to recognize separately from goodwill the assets acquired and the liabilities assumed at their acquisition date fair values. While we use our best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, our estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, we record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recognized in our consolidated statements of operations. Accounting for business combinations requires our management to make significant estimates and assumptions, especially at the acquisition date including our estimates for intangible assets, contractual obligations assumed, restructuring liabilities, pre-acquisition contingencies, and contingent consideration, where applicable. Although we believe the assumptions and estimates we have made in the past have been reasonable and appropriate, they are based, in part, on historical experience and information obtained from the management of the acquired companies and are inherently uncertain. Critical estimates in valuing certain acquired intangible assets under the income approach include growth in future expected cash flows from product sales, customer contracts and acquired technologies, technology obsolescence rates, expected costs to develop in-process research and development, or IPR&D, into commercially viable products, estimated cash flows from the projects when completed and discount rates. Specific events and circumstances may occur thus affecting the accuracy or validity of such assumptions, estimates or actual results. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets – Goodwill is initially recorded when the purchase price paid for an acquisition exceeds the estimated fair value of the net identified tangible and intangible assets acquired. Intangible assets with finite lives are amortized over their respective useful lives on a straight-line basis and are also evaluated annually for impairment or whenever events or circumstances occur which indicate that those assets might be impaired. Goodwill and indefinite lived assets are not amortized but tested annually for impairment. The Company’s impairment review process is completed during the fourth quarter of each year or whenever events, or circumstances occur which indicate that an impairment may have occurred. The Company assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If, after assessing the qualitative factors, the Company determines that it is not likely that the fair value of a reporting unit is less than its carrying value, then performing the two-step impairment test is unnecessary. However, if the Company concludes otherwise, then it is required to perform the first step of the two-step goodwill impairment test. The first step requires a comparison of the fair value of Nanometrics’ reporting unit to its net book value. If the fair value of the reporting unit is greater than its carrying value, then no impairment is deemed to have occurred. If the fair value is less, then the second step must be performed to determine the amount, if any, of actual impairment. Amortization of intangible assets with finite lives is computed using the straight-line method over the following estimated useful lives of the assets: Developed technology 9-10 years Customer relationships 9 years Trade name 15 years Backlog < 1 year |
Long-Lived Assets | Long-Lived Assets – The Company evaluates its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When the sum of the undiscounted future net cash flows expected to result from the use of the asset and its eventual disposition is less than its carrying amount, impairment may exist. To determine the amount of impairment, the Company compares the fair value of the asset to its carrying value. If the carrying value of the asset exceeds its fair value, an impairment loss equal to the difference is recognized. See Note 8, "Goodwill and Intangible Assets" for further details. |
Income Tax Assets and Liabilities | Income Tax Assets and Liabilities – The Company accounts for income taxes such that deferred tax assets and liabilities must be recognized using enacted tax rates for the effect of temporary differences between the book and tax accounting for assets and liabilities. Also, deferred tax assets are reduced by a valuation allowance to the extent that management cannot conclude that it is more likely than not that a portion of the deferred tax asset will be realized in the future. The Company evaluates the deferred tax assets on a continuous basis throughout the year to determine whether or not a valuation allowance is appropriate. Factors used in this determination include future expected income and the underlying asset or liability which generated the temporary tax difference. The income tax provision is primarily impacted by federal statutory rates, state and foreign income taxes and changes in the valuation allowance. |
Product Warranties | Product Warranties – The Company sells most of its products with a twelve-month repair or replacement warranty from the date of acceptance, which generally represents the date of shipment. The Company provides an accrual for estimated future warranty costs based upon the historical relationship of warranty costs to the cost of products sold. The estimated future warranty obligations related to product sales are reported in the period in which the related revenue is recognized. The estimated future warranty obligations are affected by the warranty periods, sales volumes, product failure rates, material usage and labor and replacement costs incurred in correcting a product failure. If actual product failure rates, material usage, labor or replacement costs differ from the Company’s estimates, revisions to the estimated warranty obligations would be required. For new product introductions where limited or no historical information exists, the Company may use warranty information from other previous product introductions to guide it in estimating the warranty accrual. The warranty accrual represents the best estimate of the amount necessary to settle future and existing claims on products sold as of the balance sheet date. The Company periodically assesses the adequacy of its recorded warranty reserve and adjusts the amounts in accordance with changes in these factors |
Defined Employee Benefit Plans | Defined Employee Benefit Plans – The Company maintains a defined benefit pension plan in Taiwan for which current service costs are charged to operations as they accrue based on services rendered by employees during the year. Pension benefit obligations are determined by using management’s actuarial assumptions, including discount rates, assumed asset rates of return, compensation increases and employee turnover rates. |
Net Income Per Share | Net Income Per Share - Basic net income per share excludes dilution and is computed by dividing net income by the number of weighted average common shares outstanding for the period. Diluted net income per share reflects the potential dilution from outstanding dilutive stock options (using the treasury stock method), restricted stock units subject to vesting and shares issuable under the employee stock purchase plan. In applying the treasury stock method 0.5 million, 0.6 million and 0.5 million stock option shares for fiscal year 2018, 2017 and 2016, respectively, were included in the calculation of diluted shares. |
Certain Significant Risks and Uncertainties | Certain Significant Risks and Uncertainties – Financial instruments that potentially subject us to a concentration of credit risk consist of cash, cash equivalents, marketable securities, and accounts receivable. The Company's cash and cash equivalents are primarily invested in deposit accounts and money market accounts with large financial institutions. At times, these deposits and securities may exceed federally insured limits; however, the Company has not experienced any losses on such accounts. The Company invests its cash not required for use in operations in high credit quality securities based on the Company's investment policy. The Company's investment policy provides guidelines and limits regarding credit quality, investment concentration, investment type, and maturity that the Company believes will provide liquidity while reducing risk of loss of capital. Investments are of a short-term nature and include investments in commercial paper, corporate debt securities, asset-backed securities, U.S. Treasury, U.S. Government, and U.S. Agency debt. The Company sells its products primarily to end users in the United States, Asia and Europe and, generally, does not require its customers to provide collateral or other security to support accounts receivable. Management performs ongoing credit evaluations of its customers’ financial condition and maintains an allowance for estimated potential bad debt losses. The Company’s customer base is highly concentrated and historically, a relatively small number of customers have accounted for a significant portion of its revenues. Aggregate revenue from the Company's top five largest customers in 2018, 2017 and 2016 consisted of 70%, 73% and 73%, respectively, of its total net revenues. The Company participates in a dynamic high technology industry and believes that changes in any of the following areas could have a material adverse effect on its future financial position, results of operations or cash flows: advances and trends in new technologies and industry standards; competitive pressures in the form of new products or price reductions on current products; changes in product mix; changes in the overall demand for products offered; changes in third-party manufacturers; changes in key suppliers; changes in certain strategic relationships or customer relationships; litigation or claims against the Company based on intellectual property, patent, product, regulatory or other factors; fluctuations in foreign currency exchange rates; risk associated with changes in domestic and international economic and/or political regulations; availability of necessary components or sub-assemblies; disruption of manufacturing facilities; and its ability to attract and retain employees necessary to support its growth. Certain components and sub-assemblies used in the Company’s products are purchased from a sole supplier or a limited group of suppliers. The Company currently purchases its spectroscopic ellipsometer and robotics used in its advanced measurement systems from a sole supplier or a limited group of suppliers located in the United States. Any shortage or interruption in the supply of any of the components or sub-assemblies used in its products or its inability to procure these components or sub-assemblies from alternate sources on acceptable terms could have a material adverse effect on its business, financial condition and results of operations. |
Nature of Business, Basis of _3
Nature of Business, Basis of Presentation and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Estimated useful lives of property, plant and equipment | Depreciation and amortization is computed using the straight–line method over the following estimated useful lives of the assets: Building and Improvements 5-40 years Machinery and equipment 3-10 years Furniture and fixtures 3-10 years Software 3-7 years |
Estimated Useful Lives of Intangible Assets | Amortization of intangible assets with finite lives is computed using the straight-line method over the following estimated useful lives of the assets: Developed technology 9-10 years Customer relationships 9 years Trade name 15 years Backlog < 1 year |
Accounting Standards Update 2014-09 [Member] | |
Schedule of New Accounting Standards Adoption Impacts | The following tables summarize the impacts of Topic 606 adoption on the Company’s financial statements for the twelve months ended December 29, 2018 (in thousands, except per share data): Twelve Months Ended December 29, 2018 As Reported Balances Without Adoption of ASC 606 Effect of Change Higher/(Lower) Net Revenue $ 324,523 $ 320,968 $ 3,555 Net Income $ 57,648 $ 55,413 $ 2,235 Net income per share: Basic $ 2.39 $ 2.30 $ 0.09 Diluted $ 2.34 $ 2.25 $ 0.09 |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Business Combinations [Abstract] | |
Summary of Allocation of Total Purchase Consideration to Initial Estimated Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the allocation of the total purchase consideration to the initial estimated fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands): November 15, 2018 Cash and cash equivalents $ 1,414 Accounts receivable, net 4,156 Inventories 4,563 Prepaid and other current assets 104 Property and equipment 145 Accounts payable (702 ) Accrued liabilities (760 ) Deferred revenue (197 ) Deferred tax liabilities (5,408 ) Total assets acquired/liabilities assumed 3,315 Developed technology 15,500 In-process research and development 1,400 Customer relationships 4,600 Order backlog 500 Trade name 1,500 Total identified intangible assets 23,500 Total identifiable net assets 26,815 Goodwill 15,762 Total purchase consideration $ 42,577 |
Schedule of Unaudited Pro Forma Financial Information Presents Combined Results of Operations | The following unaudited pro forma financial information presents the combined results of operations as if the 4D acquisition had occurred at the beginning of fiscal year 2017 and is presented for informational purposes only. These results may not necessarily reflect the actual results of operations that would have been achieved, nor are they necessarily reflective of future results of operations (in thousands, except per share data). (Unaudited) Years Ended December 29, 2018 December 30, 2017 Pro forma net revenue $ 338,919 $ 271,966 Pro forma net income 57,672 29,302 Pro forma net income per share - basic $ 2.39 $ 1.16 Pro forma net income per share - diluted 2.34 1.13 |
Fair Value Measurements and D_2
Fair Value Measurements and Disclosures (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Fair Value Disclosures [Abstract] | |
Assets and liabilities measurements at estimated fair value on recurring basis excluding accrued interest components | The following tables present the Company’s assets and liabilities measured at estimated fair value on a recurring basis, excluding accrued interest components, categorized in accordance with the fair value hierarchy (in thousands), as of the following dates: December 29, 2018 December 30, 2017 Fair Value Measurements Using Input Types Fair Value Measurements Using Input Types Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 113 $ — $ — $ 113 $ 256 $ — $ — $ 256 Commercial paper — 1,993 — 1,993 — — — — Total cash equivalents 113 1,993 — 2,106 256 — — 256 Marketable securities: U.S. Government agency debt securities — — — — — 1,495 — 1,495 Certificate of deposits — 9,497 — 9,497 — 14,497 — 14,497 Commercial paper — 7,932 — 7,932 — 7,949 — 7,949 Corporate debt securities — 15,730 — 15,730 — 47,968 — 47,968 Asset backed securities — 7,682 — 7,682 — 10,221 — 10,221 Total marketable securities — 40,841 — 40,841 — 82,130 — 82,130 Total (1) $ 113 $ 42,834 $ — $ 42,947 $ 256 $ 82,130 $ — $ 82,386 (1) Excludes $108.8 million and $34.6 million held in operating accounts as of December 29, 2018, and December 30, 2017, respectively. |
Outstanding derivative instruments | The following table summarizes the Company’s outstanding derivative instruments on a gross basis: December 29, 2018 December 30, 2017 Notional Amount Fair Value Notional Amount Fair Value (in millions) Asset Liability (in millions) Asset Liability Undesignated Hedges: Forward Foreign Currency Contracts Purchase $ 25.9 — — $ 27.5 — $ 0.1 Sell $ 21.8 — $ 0.2 $ 16.8 $ 0.1 — |
Cash and Investments (Tables)
Cash and Investments (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Cash, Cash Equivalents and Available-for-Sale Investments | The following table presents cash, cash equivalents, and available-for-sale investments as of the following dates (in thousands): December 29, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Market Value Cash $ 108,845 $ — $ — $ 108,845 Cash equivalents: Money market funds 113 — — 113 Commercial paper 1,993 — — 1,993 Marketable securities: Certificates of deposits 9,500 — (3 ) 9,497 Commercial paper 7,933 — (1 ) 7,932 Corporate debt securities 15,788 — (58 ) 15,730 Asset-backed securities 7,706 — (24 ) 7,682 Total cash, cash equivalents, and marketable securities $ 151,878 $ — $ (86 ) $ 151,792 December 30, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Market Value Cash $ 34,643 $ — $ — $ 34,643 Cash equivalents: Money market funds 256 — — 256 Marketable securities: U.S. Government agency securities 1,500 — (5 ) 1,495 Certificates of deposits 14,498 — (1 ) 14,497 Commercial paper 7,952 — (3 ) 7,949 Corporate debt securities 48,073 — (105 ) 47,968 Asset-backed securities 10,240 — (19 ) 10,221 Total cash, cash equivalents, and marketable securities $ 117,162 $ — $ (133 ) $ 117,029 |
Financial Statement Components
Financial Statement Components (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Selected financial statement components | The following tables provide details of selected financial statement components as of the following dates (in thousands): At December 29, 2018 December 30, 2017 Inventories: Raw materials and sub-assemblies $ 31,434 $ 32,187 Work in process 22,383 13,498 Finished goods 8,098 7,175 Inventories 61,915 52,860 Inventories-delivered systems 180 1,534 Total inventories $ 62,095 $ 54,394 Property, plant and equipment, net: (1) Land $ 15,571 $ 15,573 Building and improvements 21,354 20,880 Machinery and equipment 39,898 36,380 Furniture and fixtures 2,551 2,420 Software 10,116 9,558 Capital in progress 6,027 4,418 Total property, plant and equipment, gross 95,517 89,229 Accumulated depreciation and amortization (47,617 ) (44,419 ) Total property, plant and equipment, net $ 47,900 $ 44,810 (1) Total depreciation and amortization expense for the years ended December 29, 2018, December 30, 2017 and December 31, 2016 was $6.5 million, $6.7 million, and $6.8 million, respectively Other Current Liabilities: Accrued warranty $ 4,379 $ 4,863 Accrued taxes 1,738 813 Customer deposits 293 — Accrued professional services 448 534 Third party commissions 1,382 76 Other 1,181 963 Total other current liabilities $ 9,421 $ 7,249 |
Components of accumulated other comprehensive income (loss) | Components of Accumulated Other Comprehensive Income (Loss) Years Ended Foreign Currency Translations Defined Benefit Pension Plans Unrealized Income (Loss) on Investment Accumulated Other Comprehensive Income Balance as of December 31, 2016 $ (5,817 ) $ (227 ) $ (2 ) $ (6,046 ) Current period change 4,170 (160 ) (88 ) 3,922 Balance as of December 30, 2017 (1,647 ) (387 ) (90 ) (2,124 ) Current period change (482 ) (259 ) 308 (433 ) Balance as of December 30, 2018 $ (2,129 ) $ (646 ) $ 218 $ (2,557 ) |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The following table summarizes the activity in the Company’s goodwill during the years ended December 29, 2018 and December 30, 2017, respectively (in thousands): Amounts Balance as of December 31, 2016 $ 8,940 Foreign currency movements 1,292 Balance as of December 30, 2017 10,232 Foreign currency movements 378 4D acquisition 15,762 Balance as of December 29, 2018 $ 26,372 |
Summary of finite-lived intangible assets | Intangible assets are recorded at cost, less accumulated amortization. The Company recorded $23.5 million of intangible assets in conjunction with its acquisition of 4D in 2018 (See Note 3 – Acquisition). Intangible assets as of December 29, 2018 and December 30, 2017 consisted of the following (in thousands): December 29, 2018 Adjusted cost Accumulated amortization Net carrying amount Developed technology $ 35,954 $ (16,532 ) $ 19,422 Customer relationships 6,531 (1,519 ) 5,012 In-Process research and development 1,400 — 1,400 Trade name 1,500 (8 ) 1,492 Total $ 45,385 $ (18,059 ) $ 27,326 December 30, 2017 Adjusted cost Accumulated amortization Net carrying amount Developed technology $ 18,887 $ (16,681 ) $ 2,206 Customer relationships 9,438 (9,438 ) — Brand names 1,927 (1,927 ) — Patented technology 2,252 (2,252 ) — Trade name 80 (80 ) — Total $ 32,584 $ (30,378 ) $ 2,206 |
Estimated future amortization expense | The estimated future amortization expense of finite intangible assets as of December 29, 2018, is as follows (in thousands): Fiscal Years Amounts 2019 2,997 2020 2,905 2021 2,905 2022 2,905 2023 2,905 Thereafter 11,309 Total future amortization expense 25,926 |
Warranties (Tables)
Warranties (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Product Warranties Disclosures [Abstract] | |
Components of the warranty accrual | Components of the warranty accrual, which were included in the accompanying consolidated balance sheets with other current liabilities, were as follows (in thousands): Years Ended December 29, 2018 December 30, 2017 Balance as of beginning of period $ 4,863 $ 3,838 Accruals for warranties issued during period 4,914 5,247 Settlements during the period (5,871 ) (4,222 ) Addition of 4-D Warranty reserves 473 - Balance as of end of period $ 4,379 $ 4,863 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future minimum lease payments under operating leases | Future minimum lease payments under its operating leases are as follows (in thousands): Operating Leases 2019 3,002 2020 1,891 2021 1,051 2022 970 2023 750 Thereafter 696 Total $ 8,360 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of the basic and diluted net income per share computations | A reconciliation of the share denominator of the basic and diluted net income per share computations is as follows (in thousands): Years Ended December 29, 2018 December 30, 2017 December 31, 2016 Weighted average common shares outstanding used in basic net income per share calculation 24,120 25,334 24,655 Potential dilutive common stock equivalents, using treasury stock method 480 585 498 Weighted average shares used in diluted net income per share calculation 24,600 25,919 25,153 |
Stockholders' Equity and Stoc_2
Stockholders' Equity and Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share repurchases | Shares repurchased and retired in the years ended December 29, 2018 and December 30, 2017 under the Stock Repurchase Plan, with the associated cost of repurchase and amount available for repurchase were as follows (in thousands, except number of shares and weighted average price per share): Fiscal Year 2018 Fiscal Year 2017 Number of shares of common stock repurchased 896,187 1,065,848 Weighted average price per share $ 25.65 $ 25.33 Total cost of repurchase $ 22,987 $ 26,999 Amount available for repurchase at end of period — $ 23,001 |
Option plans | The Nanometrics option plans are as follows: Plan Name Participants Shares Authorized 2005 Equity Incentive Plan Employees, consultants and directors 8,292,594 2000 Employee Stock Option Plan Employees and consultants 2,450,000 2000 Director Stock Option Plan Non-employee directors 250,000 Accent Optical Technologies, Inc. Stock Incentive Plan Employees and consultants 205,003 |
Employee stock purchase plan assumptions | The weighted-average fair value calculations are based on the following average assumptions: Fiscal Year 2018 Fiscal Year 2017 Fiscal Year 2016 Employee Stock Purchase Plan: Expected life 0.5 years 0.5 years 0.5 years Volatility 52.46% 37.2% 38.7% Risk free interest rate 2.14% 0.91% 0.44% Dividends — — — |
Stock option plans activity | A summary of activity of stock options is as follows: Number of Shares Outstanding (Options) Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in Thousands) Options Outstanding at December 31, 2016 440,545 $ 15.06 2.12 $ 4,405 Exercised (223,364 ) 13.35 Cancelled/Forfeited (855 ) 16.63 Outstanding at December 30, 2017 216,326 16.82 1.76 $ 1,752 Exercised (132,932 ) 17.46 Cancelled/Forfeited - - Outstanding at December 29, 2018 83,394 $ 15.80 1.19 $ 988 Exercisable at December 29, 2018 83,394 $ 15.80 1.19 $ 988 |
Ranges of outstanding and exercisable options | The following table summarizes ranges of outstanding and exercisable options as of December 29, 2018. Options Outstanding Options Exercisable Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $12.98 - $14.59 1,694 1.58 $ 14.03 1,694 $ 14.03 $14.95 - $14.95 1,025 1.49 14.95 1,025 14.95 $15.00 - $15.00 10,000 0.62 15.00 10,000 15.00 $15.61 - $15.61 2,500 1.09 15.61 2,500 15.61 $15.65 - $15.65 3,375 1.21 15.65 3,375 15.65 $15.85 - $15.85 60,000 1.20 15.85 60,000 15.85 $16.00 - $16.00 100 1.72 16.00 100 16.00 $17.33 - $17.33 2,500 1.87 17.33 2,500 17.33 $18.22 - $18.22 1,200 2.16 18.22 1,200 18.22 $18.79 - $18.79 1,000 2.24 18.79 1,000 18.79 83,394 83,394 |
Summary of activity for RSUs | A summary of activity for RSUs is as follows: Summary of activity for RSUs Number of RSUs Weighted Average Fair Value Outstanding RSUs as of December 31, 2016 819,785 $ 16.79 Granted 454,600 27.12 Released (387,592 ) 16.81 Cancelled (96,494 ) 19.01 Outstanding RSUs as of December 30, 2017 790,299 22.46 Granted 484,087 36.57 Released (362,762 ) 20.79 Cancelled (142,621 ) 26.44 Outstanding RSUs as of December 29, 2018 769,003 $ 31.39 |
Summary of activity for PSUs | A summary of activity for PSUs is as follows: Summary of activity for PSUs Number of PSUs Weighted Average Fair Value Outstanding PSUs as of December 31, 2016 107,500 $ 9.94 Granted 122,050 20.51 Released (38,500 ) 10.41 Cancelled (61,100 ) 19.41 Outstanding PSUs as of December 30, 2017 129,950 15.60 Granted 63,133 24.45 Released (47,929 ) 12.10 Cancelled (32,991 ) 24.52 Outstanding PSUs as of December 29, 2018 112,163 $ 22.37 |
PSUs valuation assumptions | The assumptions for the valuation of PSUs are summarized as follows: 2018 Award 2017 Award 2016 Award Grant Date Fair Value Per Share $20.73-$25.18 $14.57-$26.75 $ 8.52 Weighted-average assumptions/inputs: Expected Dividend — — — Range of risk-free interest rates 2.39%-2.63% 1.74%-1.84% 0.92% Range of expected volatilities for peer group 22%-66% 22%-66% 22%-93% |
Stock-based compensation expense for all share-based payment awards | Stock-based compensation expense for all share-based payment awards made to the Company’s employees and directors pursuant to the employee stock option and employee stock purchase plans by function were as follows (in thousands): Fiscal Year 2018 Fiscal Year 2017 Fiscal Year 2016 Cost of products $ 704 $ 842 $ 403 Cost of service 772 616 509 Research and development 2,450 1,720 1,408 Selling 2,786 2,323 2,046 General and administrative 4,670 3,318 3,300 Total stock-based compensation expense related to employee stock options and employee stock purchases $ 11,382 $ 8,819 $ 7,666 |
Stock Options, RSUs and PSUs [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock option plans activity including options, RSUs and PSUs | A summary of activity under the Company’s stock option plans including options, RSUs and PSUs during fiscal year 2018, 2017 and 2016 and shares available for grant as of the respective period end dates, is as follows: Fiscal Year 2018 Fiscal Year 2017 Fiscal Year 2016 Shares available for grant at beginning of fiscal year 1,874,765 1,334,581 1,916,589 Additional Shares Authorized — 1,000,000 — Options - cancelled — 855 176,587 Options - expired plan shares — — (116,192 ) RSUs - granted (822,948 ) (772,820 ) (810,334 ) RSUs - cancelled 242,456 164,040 92,230 RSUs - shares issued to satisfy tax withholding obligations - 251,724 179,117 PSUs - granted (107,327 ) (207,485 ) (114,750 ) PSUs - cancelled 56,085 103,870 11,334.00 Shares available for grant at end of fiscal year 1,243,031 1,874,765 1,334,581 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
Income (loss) before provision for income taxes | Income (loss) before provision for income taxes consists of the following (in thousands): Years Ended December 29, 2018 December 30, 2017 December 31, 2016 Domestic $ 52,836 $ 34,238 $ 25,372 Foreign 14,688 9,060 3,763 Income (loss) before income taxes $ 67,524 $ 43,298 $ 29,135 |
Provision (benefit) for income taxes | The provision (benefit) for income taxes consists of the following (in thousands): Years Ended December 29, 2018 December 30, 2017 December 31, 2016 Current: Federal $ 616 $ 3,250 $ 697 State 142 9 85 Foreign 5,054 2,998 2,111 5,812 6,257 2,893 Deferred: Federal 3,875 6,314 (16,641 ) State (18 ) 53 (320 ) Foreign 207 472 (832 ) 4,064 6,839 (17,793 ) Provision (benefit) for income taxes $ 9,876 $ 13,096 $ (14,900 ) |
Components of deferred tax assets and liabilities | Significant components of the Company's deferred tax assets and liabilities are as follows (in thousands): At December 29, 2018 December 30, 2017 Deferred tax assets: Reserves and accruals $ 5,704 $ 5,797 Deferred revenue 241 240 Shared-based compensation 1,644 1,483 Tax credit carry-forwards 6,920 9,669 Net operating losses 6,022 9,755 Depreciation & amortization (7,528 ) (1,525 ) Other 532 207 Total deferred tax assets 13,535 25,626 Less: Valuation allowance (10,966 ) (13,702 ) Total deferred tax assets net of valuation allowance 2,569 11,924 Deferred tax liabilities: Depreciation & amortization (13 ) (12 ) Other (149 ) (167 ) Total deferred tax liabilities (162 ) (179 ) Net deferred tax assets $ 2,407 $ 11,745 |
Income Tax Rate Reconciliation | Differences between income taxes computed by applying the statutory federal income tax rate to income (loss) before income taxes and the provision (benefit) for income taxes consist of the following (in thousands): Years Ended December 29, 2018 December 30, 2017 December 31, 2016 Income taxes computed at U.S. statutory rate $ 14,180 $ 15,153 $ 10,197 State income taxes 379 227 223 Foreign tax rate differential (2,382 ) 794 3,502 Change in valuation allowance 3,037 1,490 (25,738 ) Non-deductible equity compensation (1,241 ) (1,803 ) 380 Tax credits (3,876 ) (2,336 ) (3,191 ) Domestic production activities deduction - (608 ) (354 ) Liabilities for uncertain tax positions 12 18 67 Other, net (233 ) 161 14 Provision (benefit) for income taxes $ 9,876 $ 13,096 $ (14,900 ) |
Reconciliation of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): At December 29, 2018 December 30, 2017 December 31, 2016 Unrecognized tax benefits - beginning of the period $ 7,151 $ 6,477 $ 6,961 Gross increases-tax positions in prior period 132 32 23 Gross decreases-tax positions in prior period — — (1,193 ) Gross increases-current-period tax positions 1,000 723 686 Lapse of statute of limitations (175 ) (81 ) — Unrecognized tax benefits - end of the period $ 8,108 $ 7,151 $ 6,477 |
Segment, Geographic, and Sign_2
Segment, Geographic, and Significant Customer Information (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Segment Reporting [Abstract] | |
Total net revenue | The following tables summarize total net revenues and long-lived assets (excluding intangible assets) attributed to significant countries (in thousands): Years Ended December 29, 2018 December 30, 2017 December 31, 2016 Total net revenues (1): South Korea $ 108,938 $ 94,082 $ 44,735 China 72,305 29,826 43,460 Japan 64,252 41,979 26,604 United States 29,415 33,983 29,887 Singapore 22,167 21,810 37,096 Taiwan 14,012 20,147 27,189 Other 13,434 16,794 12,158 Total net revenues $ 324,523 $ 258,621 $ 221,129 (1) |
Long-lived tangible assets | Years Ended December 29, 2018 December 30, 2017 Long-lived tangible assets: United States $ 46,325 $ 43,427 Taiwan 275 510 South Korea 420 576 Japan 59 60 Singapore 618 92 All Other 203 145 Total long-lived tangible assets $ 47,900 $ 44,810 |
Nature of Business, Basis of _4
Nature of Business, Basis of Presentation and Significant Accounting Policies - Textual (Details) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 29, 2018USD ($)PerformanceObligationCustomershares | Dec. 30, 2017USD ($)Customershares | Dec. 31, 2016USD ($)Customershares | |
Accounting Policies [Line Items] | |||
Fiscal year duration | 364 days | 364 days | 371 days |
Foreign currency transaction losses | $ (1.1) | $ (0.6) | $ (0.4) |
Minimum required performance obligation for contracts | PerformanceObligation | 1 | ||
Maximum period of delivery to customers | 6 months | ||
Maximum period services are provided over the fixed arrangement term | 12 months | ||
Revenue recognized during the period | $ 5.2 | ||
Product warranty period | 12 months | ||
Potential dilutive common stock equivalents, using treasury stock method | shares | 480 | 585 | 498 |
Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member] | |||
Accounting Policies [Line Items] | |||
Number of Major Customer | Customer | 5 | 5 | 5 |
Concentration of risk percentage | 70.00% | 73.00% | 73.00% |
Stock Options [Member] | |||
Accounting Policies [Line Items] | |||
Potential dilutive common stock equivalents, using treasury stock method | shares | 500 | 600 | 500 |
Accounts Receivable [Member] | |||
Accounting Policies [Line Items] | |||
Contract assets balance | $ 2.2 | $ 4.3 | |
Minimum [Member] | |||
Accounting Policies [Line Items] | |||
Performance obligations payment term. | 30 days | ||
Maximum [Member] | |||
Accounting Policies [Line Items] | |||
Performance obligations payment term. | 60 days |
Nature of Business, Basis of _5
Nature of Business, Basis of Presentation and Significant Accounting Policies - Schedule of New Accounting Standards Adoption Impacts Statement of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Accounting Policies [Line Items] | |||
Net Revenue | $ 324,523 | $ 258,621 | $ 221,129 |
Net income | $ 57,648 | $ 30,202 | $ 44,035 |
Net income per share: | |||
Basic (in dollars per share) | $ 2.39 | $ 1.19 | $ 1.79 |
Diluted (in dollars per share) | $ 2.34 | $ 1.17 | $ 1.75 |
Calculated under Revenue Guidance in Effect before Topic 606 | Topic 606 Adoption [Member] | |||
Accounting Policies [Line Items] | |||
Net Revenue | $ 320,968 | ||
Net income | $ 55,413 | ||
Net income per share: | |||
Basic (in dollars per share) | $ 2.30 | ||
Diluted (in dollars per share) | $ 2.25 | ||
Effect of Change Higher/(Lower) [Member] | Topic 606 Adoption [Member] | |||
Accounting Policies [Line Items] | |||
Net Revenue | $ 3,555 | ||
Net income | $ 2,235 | ||
Net income per share: | |||
Basic (in dollars per share) | $ 0.09 | ||
Diluted (in dollars per share) | $ 0.09 |
Nature of Business, Basis of _6
Nature of Business, Basis of Presentation and Significant Accounting Policies - Estimated Useful Lives of Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 29, 2018 | |
Building and Improvements [Member] | Minimum [Member] | |
Accounting Policies [Line Items] | |
Estimated useful lives of depreciable assets | 5 years |
Building and Improvements [Member] | Maximum [Member] | |
Accounting Policies [Line Items] | |
Estimated useful lives of depreciable assets | 40 years |
Machinery and equipment [Member] | Minimum [Member] | |
Accounting Policies [Line Items] | |
Estimated useful lives of depreciable assets | 3 years |
Machinery and equipment [Member] | Maximum [Member] | |
Accounting Policies [Line Items] | |
Estimated useful lives of depreciable assets | 10 years |
Furniture and fixtures [Member] | Minimum [Member] | |
Accounting Policies [Line Items] | |
Estimated useful lives of depreciable assets | 3 years |
Furniture and fixtures [Member] | Maximum [Member] | |
Accounting Policies [Line Items] | |
Estimated useful lives of depreciable assets | 10 years |
Software [Member] | Minimum [Member] | |
Accounting Policies [Line Items] | |
Estimated useful lives of depreciable assets | 3 years |
Software [Member] | Maximum [Member] | |
Accounting Policies [Line Items] | |
Estimated useful lives of depreciable assets | 7 years |
Nature of Business, Basis of _7
Nature of Business, Basis of Presentation and Significant Accounting Policies - Estimated Useful Lives of Intangible Assets (Details) | 12 Months Ended |
Dec. 29, 2018 | |
Minimum [Member] | |
Accounting Policies [Line Items] | |
Finite-lived intangibles estimated lives | 2 years |
Maximum [Member] | |
Accounting Policies [Line Items] | |
Finite-lived intangibles estimated lives | 15 years |
Developed technology [Member] | Minimum [Member] | |
Accounting Policies [Line Items] | |
Finite-lived intangibles estimated lives | 9 years |
Developed technology [Member] | Maximum [Member] | |
Accounting Policies [Line Items] | |
Finite-lived intangibles estimated lives | 10 years |
Customer relationships [Member] | |
Accounting Policies [Line Items] | |
Finite-lived intangibles estimated lives | 9 years |
Trade name [Member] | |
Accounting Policies [Line Items] | |
Finite-lived intangibles estimated lives | 15 years |
Backlog [Member] | Maximum [Member] | |
Accounting Policies [Line Items] | |
Finite-lived intangibles estimated lives | 1 year |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements - Textual (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Deferred revenue | $ 2,399 | $ (915) | $ (3,634) |
Increase (decrease) in inventories | 8,962 | 18,037 | $ (4,526) |
Accounting Standards Update 2014-09 [Member] | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Adjustment opening balance of equity | 900 | ||
Deferred revenue | (1,600) | ||
Increase (decrease) in inventories | $ (700) | ||
Accounting Standards Update 2016-02 [Member] | Minimum [Member] | Pro Forma [Member] | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Lease liabilities | 10,500 | ||
Lease assets | 10,500 | ||
Accounting Standards Update 2016-02 [Member] | Maximum [Member] | Pro Forma [Member] | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Lease liabilities | 12,500 | ||
Lease assets | $ 12,500 |
Acquisition - Textual (Details)
Acquisition - Textual (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 15, 2018 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Acquire paid in cash, net | $ 37,163 | |||
Net sales | 324,523 | $ 258,621 | $ 221,129 | |
Operating loss | $ (66,487) | (42,806) | $ (29,095) | |
Maximum [Member] | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life | 15 years | |||
Minimum [Member] | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life | 2 years | |||
Developed technology [Member] | Maximum [Member] | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life | 10 years | |||
Developed technology [Member] | Minimum [Member] | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life | 9 years | |||
Customer relationships [Member] | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life | 9 years | |||
Backlog [Member] | Maximum [Member] | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life | 1 year | |||
Trade name [Member] | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life | 15 years | |||
4D Technology [Member] | ||||
Business Acquisition [Line Items] | ||||
Account receivable not expected to be collected | $ 161 | |||
Finite-lived intangible assets | $ 22,100 | |||
Weighted average estimated useful life | 9 years 3 months | |||
Net sales | $ 2,100 | |||
Operating loss | 400 | |||
Pro forma net revenue | 338,919 | 271,966 | ||
Pro forma net income | 57,672 | 29,302 | ||
Business acquisition, related costs | 900 | |||
4D Technology [Member] | Material Nonrecurring Adjustments [Member] | ||||
Business Acquisition [Line Items] | ||||
Pro forma net revenue | 3,500 | 3,500 | ||
Pro forma net income | $ 1,700 | $ 1,700 | ||
4D Technology [Member] | Developed technology [Member] | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life | 9 years | |||
4D Technology [Member] | Customer relationships [Member] | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life | 9 years | |||
4D Technology [Member] | Backlog [Member] | Maximum [Member] | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life | 1 year | |||
4D Technology [Member] | Trade name [Member] | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life | 15 years | |||
4D Technology [Member] | Stock Purchase Agreement [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquire paid in cash | $ 38,700 | |||
Acquire paid in cash, net | $ 37,200 | |||
4D Technology [Member] | Stock Purchase Agreement [Member] | Common Stock [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquire share | 125,117 | |||
Acquire share price | $ 0.001 | |||
Acquire share value | $ 4,000 |
Acquisition - Summary of Alloca
Acquisition - Summary of Allocation of Total Purchase Consideration to Initial Estimated Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Nov. 15, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 26,372 | $ 10,232 | $ 8,940 | |
4D Technology [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 1,414 | |||
Accounts receivable, net | 4,156 | |||
Inventories | 4,563 | |||
Prepaid and other current assets | 104 | |||
Property and equipment | 145 | |||
Accounts payable | (702) | |||
Accrued liabilities | (760) | |||
Deferred revenue | (197) | |||
Deferred tax liabilities | (5,408) | |||
Total assets acquired/liabilities assumed | 3,315 | |||
Total identified intangible assets | 23,500 | |||
Total identifiable net assets | 26,815 | |||
Goodwill | 15,762 | |||
Total purchase consideration | 42,577 | |||
4D Technology [Member] | Developed technology [Member] | ||||
Business Acquisition [Line Items] | ||||
Total identified intangible assets | 15,500 | |||
4D Technology [Member] | In-process research and development [Member] | ||||
Business Acquisition [Line Items] | ||||
Total identified intangible assets | 1,400 | |||
4D Technology [Member] | Customer relationships [Member] | ||||
Business Acquisition [Line Items] | ||||
Total identified intangible assets | 4,600 | |||
4D Technology [Member] | Backlog [Member] | ||||
Business Acquisition [Line Items] | ||||
Total identified intangible assets | 500 | |||
4D Technology [Member] | Trade name [Member] | ||||
Business Acquisition [Line Items] | ||||
Total identified intangible assets | $ 1,500 |
Acquisition - Schedule of Unaud
Acquisition - Schedule of Unaudited Pro Forma Financial Information Presents Combined Results of Operations (Details) - 4D Technology [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Business Acquisition [Line Items] | ||
Pro forma net revenue | $ 338,919 | $ 271,966 |
Pro forma net income | $ 57,672 | $ 29,302 |
Pro forma net income per share - basic | $ 2.39 | $ 1.16 |
Pro forma net income per share - diluted | $ 2.34 | $ 1.13 |
Fair Value Measurements and D_3
Fair Value Measurements and Disclosures - Measured at Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Assets: | ||
Total cash equivalents | $ 2,106 | $ 256 |
Total marketable securities | 40,841 | 82,130 |
Total | 42,947 | 82,386 |
Level 1 [Member] | ||
Assets: | ||
Total cash equivalents | 113 | 256 |
Total marketable securities | 0 | 0 |
Total | 113 | 256 |
Level 2 [Member] | ||
Assets: | ||
Total cash equivalents | 1,993 | 0 |
Total marketable securities | 40,841 | 82,130 |
Total | 42,834 | 82,130 |
Level 3 [Member] | ||
Assets: | ||
Total cash equivalents | 0 | 0 |
Total marketable securities | 0 | 0 |
Total | 0 | 0 |
Money market funds [Member] | ||
Assets: | ||
Total cash equivalents | 113 | 256 |
Money market funds [Member] | Level 1 [Member] | ||
Assets: | ||
Total cash equivalents | 113 | 256 |
Money market funds [Member] | Level 2 [Member] | ||
Assets: | ||
Total cash equivalents | 0 | 0 |
Money market funds [Member] | Level 3 [Member] | ||
Assets: | ||
Total cash equivalents | 0 | 0 |
Commercial paper [Member] | ||
Assets: | ||
Total cash equivalents | 1,993 | 0 |
Total marketable securities | 7,932 | 7,949 |
Commercial paper [Member] | Level 1 [Member] | ||
Assets: | ||
Total cash equivalents | 0 | 0 |
Total marketable securities | 0 | 0 |
Commercial paper [Member] | Level 2 [Member] | ||
Assets: | ||
Total cash equivalents | 1,993 | 0 |
Total marketable securities | 7,932 | 7,949 |
Commercial paper [Member] | Level 3 [Member] | ||
Assets: | ||
Total cash equivalents | 0 | 0 |
Total marketable securities | 0 | 0 |
U.S. Government agency debt securities [Member] | ||
Assets: | ||
Total marketable securities | 0 | 1,495 |
U.S. Government agency debt securities [Member] | Level 1 [Member] | ||
Assets: | ||
Total marketable securities | 0 | 0 |
U.S. Government agency debt securities [Member] | Level 2 [Member] | ||
Assets: | ||
Total marketable securities | 0 | 1,495 |
U.S. Government agency debt securities [Member] | Level 3 [Member] | ||
Assets: | ||
Total marketable securities | 0 | 0 |
Certificates of deposits [Member] | ||
Assets: | ||
Total marketable securities | 9,497 | 14,497 |
Certificates of deposits [Member] | Level 1 [Member] | ||
Assets: | ||
Total marketable securities | 0 | 0 |
Certificates of deposits [Member] | Level 2 [Member] | ||
Assets: | ||
Total marketable securities | 9,497 | 14,497 |
Certificates of deposits [Member] | Level 3 [Member] | ||
Assets: | ||
Total marketable securities | 0 | 0 |
Corporate debt securities [Member] | ||
Assets: | ||
Total marketable securities | 15,730 | 47,968 |
Corporate debt securities [Member] | Level 1 [Member] | ||
Assets: | ||
Total marketable securities | 0 | 0 |
Corporate debt securities [Member] | Level 2 [Member] | ||
Assets: | ||
Total marketable securities | 15,730 | 47,968 |
Corporate debt securities [Member] | Level 3 [Member] | ||
Assets: | ||
Total marketable securities | 0 | 0 |
Asset-backed Securities [Member] | ||
Assets: | ||
Total marketable securities | 7,682 | 10,221 |
Asset-backed Securities [Member] | Level 1 [Member] | ||
Assets: | ||
Total marketable securities | 0 | 0 |
Asset-backed Securities [Member] | Level 2 [Member] | ||
Assets: | ||
Total marketable securities | 7,682 | 10,221 |
Asset-backed Securities [Member] | Level 3 [Member] | ||
Assets: | ||
Total marketable securities | $ 0 | $ 0 |
Fair Value Measurements and D_4
Fair Value Measurements and Disclosures - Measured at Fair Value on Recurring Basis (Parenthetical) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents | $ 2,106 | $ 256 |
Cash [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents | $ 108,800 | $ 34,600 |
Fair Value Measurements and D_5
Fair Value Measurements and Disclosures - Textual (Details) - USD ($) | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Fair Value Measurements and Disclosures (Textual) [Abstract] | ||
Fair value assets among level 1, level 2 and level 3 transfers, amount | $ 0 | |
Forward Foreign Currency Contracts [Member] | ||
Fair Value Measurements and Disclosures (Textual) [Abstract] | ||
Derivative term | 30 days | |
Forward Foreign Currency Contracts [Member] | Other Income (Expense), Net [Member] | ||
Fair Value Measurements and Disclosures (Textual) [Abstract] | ||
Gain (loss) on settlement of derivatives | $ (2,500,000) | $ 1,400,000 |
Fair Value Measurements and D_6
Fair Value Measurements and Disclosures - Outstanding Derivative Instruments (Details) - Forward Foreign Currency Contracts [Member] - Not Designated as Hedging Instrument [Member] - USD ($) | Dec. 29, 2018 | Dec. 30, 2017 |
Purchase [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional Amount | $ 25,900,000 | $ 27,500,000 |
Fair Value Asset | 0 | 0 |
Fair Value Liability | 0 | 100,000 |
Sell [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional Amount | 21,800,000 | 16,800,000 |
Fair Value Asset | 0 | 100,000 |
Fair Value Liability | $ 200,000 | $ 0 |
Cash and Investments (Details)
Cash and Investments (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 151,878 | $ 117,162 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (86) | (133) |
Estimated Fair Market Value | 151,792 | 117,029 |
Cash [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 108,845 | 34,643 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Market Value | 108,845 | 34,643 |
Money market funds [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 113 | 256 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Market Value | 113 | 256 |
Commercial paper [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 1,993 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Estimated Fair Market Value | 1,993 | |
Certificates of deposits [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 9,500 | 14,498 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (3) | (1) |
Estimated Fair Market Value | 9,497 | 14,497 |
U.S. Government agency securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 1,500 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (5) | |
Estimated Fair Market Value | 1,495 | |
Commercial paper [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 7,933 | 7,952 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1) | (3) |
Estimated Fair Market Value | 7,932 | 7,949 |
Corporate debt securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 15,788 | 48,073 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (58) | (105) |
Estimated Fair Market Value | 15,730 | 47,968 |
Asset-backed Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 7,706 | 10,240 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (24) | (19) |
Estimated Fair Market Value | $ 7,682 | $ 10,221 |
Cash and Investments - Addition
Cash and Investments - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Investments Debt And Equity Securities [Abstract] | |||
Net realized gains on sale of securities | $ 1.4 | $ 1.3 | $ 0.5 |
Investment effective maturity period, less than | 3 years | 3 years |
Accounts Receivable - Textual (
Accounts Receivable - Textual (Details) - USD ($) | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Accounts Receivable (Additional Textual) [Abstract] | ||
Sold receivables amount | $ 64,300,000 | $ 18,600,000 |
Due from unrelated third parties | $ 0 | $ 0 |
Minimum [Member] | ||
Accounts Receivable (Textual) [Abstract] | ||
Administrative fees as well as interest percent | 0.62% | |
Maximum [Member] | ||
Accounts Receivable (Textual) [Abstract] | ||
Administrative fees as well as interest percent | 1.48% |
Financial Statement Component_2
Financial Statement Components - Selected Financial Statement Components (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 31, 2017 | Dec. 30, 2017 | Dec. 31, 2016 |
Inventories: | ||||
Raw materials and sub-assemblies | $ 31,434 | $ 32,187 | ||
Work in process | 22,383 | 13,498 | ||
Finished goods | 8,098 | 7,175 | ||
Inventories | 61,915 | 52,860 | ||
Inventories-delivered systems | 180 | 1,534 | ||
Total inventories | 62,095 | 54,394 | ||
Property, plant and equipment, net: | ||||
Total property, plant and equipment, gross | 95,517 | 89,229 | ||
Accumulated depreciation and amortization | (47,617) | (44,419) | ||
Total property, plant and equipment, net | 47,900 | 44,810 | ||
Other Current Liabilities: | ||||
Accrued warranty | 4,379 | $ 4,863 | 4,863 | $ 3,838 |
Accrued taxes | 1,738 | 813 | ||
Customer deposits | 293 | |||
Accrued professional services | 448 | 534 | ||
Third party commissions | 1,382 | 76 | ||
Other | 1,181 | 963 | ||
Total other current liabilities | 9,421 | 7,249 | ||
Land [Member] | ||||
Property, plant and equipment, net: | ||||
Total property, plant and equipment, gross | 15,571 | 15,573 | ||
Building and improvements [Member] | ||||
Property, plant and equipment, net: | ||||
Total property, plant and equipment, gross | 21,354 | 20,880 | ||
Machinery and equipment [Member] | ||||
Property, plant and equipment, net: | ||||
Total property, plant and equipment, gross | 39,898 | 36,380 | ||
Furniture and fixtures [Member] | ||||
Property, plant and equipment, net: | ||||
Total property, plant and equipment, gross | 2,551 | 2,420 | ||
Software [Member] | ||||
Property, plant and equipment, net: | ||||
Total property, plant and equipment, gross | 10,116 | 9,558 | ||
Capital in progress [Member] | ||||
Property, plant and equipment, net: | ||||
Total property, plant and equipment, gross | $ 6,027 | $ 4,418 |
Financial Statement Component_3
Financial Statement Components - Selected Financial Statement Components (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||
Depreciation and amortization expense | $ 6.5 | $ 6.7 | $ 6.8 |
Financial Statement Component_4
Financial Statement Components - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2018 | Dec. 30, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance Value | $ 262,383 | $ 243,774 |
Ending Balance Value | 262,383 | |
Foreign Currency Translations [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance Value | (1,647) | (5,817) |
Current period change | (482) | 4,170 |
Ending Balance Value | (2,129) | (1,647) |
Defined Benefit Pension Plans [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance Value | (387) | (227) |
Current period change | (259) | (160) |
Ending Balance Value | (646) | (387) |
Unrealized Income (Loss) on Investment [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance Value | (90) | (2) |
Current period change | 308 | (88) |
Ending Balance Value | 218 | (90) |
Accumulated Other Comprehensive Income (Loss) [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance Value | (2,124) | (6,046) |
Current period change | (433) | 3,922 |
Ending Balance Value | $ (2,557) | $ (2,124) |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 10,232 | $ 8,940 |
Foreign currency movements | 378 | 1,292 |
4D acquisition | 15,762 | |
Ending balance | $ 26,372 | $ 10,232 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Textual (Details) - USD ($) | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Total amortization expense | $ 400,000 | $ 200,000 | $ 1,500,000 |
Impairment charges | 0 | $ 0 | |
Fully amortized intangible assets, retired | $ 16,100,000 | ||
Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangibles estimated lives | 2 years | ||
Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangibles estimated lives | 15 years | ||
4D Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 23,500,000 | ||
Intangible assets acquired, In-Process research and development | $ 1,400,000 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Summary of intangible assets, net (excluding goodwill) | ||
Adjusted cost | $ 45,385 | $ 32,584 |
Accumulated amortization | (18,059) | (30,378) |
Net carrying amount | 27,326 | 2,206 |
Developed technology [Member] | ||
Summary of intangible assets, net (excluding goodwill) | ||
Adjusted cost | 35,954 | 18,887 |
Accumulated amortization | (16,532) | (16,681) |
Net carrying amount | 19,422 | 2,206 |
Customer relationships [Member] | ||
Summary of intangible assets, net (excluding goodwill) | ||
Adjusted cost | 6,531 | 9,438 |
Accumulated amortization | (1,519) | (9,438) |
Net carrying amount | 5,012 | 0 |
Brand names [Member] | ||
Summary of intangible assets, net (excluding goodwill) | ||
Adjusted cost | 1,927 | |
Accumulated amortization | (1,927) | |
Net carrying amount | 0 | |
Patented technology [Member] | ||
Summary of intangible assets, net (excluding goodwill) | ||
Adjusted cost | 2,252 | |
Accumulated amortization | (2,252) | |
Net carrying amount | 0 | |
In-Process research and development [Member] | ||
Summary of intangible assets, net (excluding goodwill) | ||
Adjusted cost | 1,400 | |
Accumulated amortization | 0 | |
Net carrying amount | 1,400 | |
Trade name [Member] | ||
Summary of intangible assets, net (excluding goodwill) | ||
Adjusted cost | 1,500 | 80 |
Accumulated amortization | (8) | (80) |
Net carrying amount | $ 1,492 | $ 0 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Future Amortization (Details) $ in Thousands | Dec. 29, 2018USD ($) |
Estimated future amortization expense | |
2,019 | $ 2,997 |
2,020 | 2,905 |
2,021 | 2,905 |
2,022 | 2,905 |
2,023 | 2,905 |
Thereafter | 11,309 |
Finite lived intangible assets, Net carrying amount | $ 25,926 |
Warranties - Textual (Details)
Warranties - Textual (Details) | 12 Months Ended |
Dec. 29, 2018 | |
Product Warranties Disclosures [Abstract] | |
Product warranty period | 12 months |
Warranties (Details)
Warranties (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Components of the warranty accrual [Roll Forward] | ||
Balance as of beginning of period | $ 4,863 | $ 3,838 |
Accruals for warranties issued during period | 4,914 | 5,247 |
Settlements during the period | (5,871) | (4,222) |
Addition of 4-D Warranty reserves | 473 | |
Balance as of end of period | $ 4,379 | $ 4,863 |
Commitments and Contingencies -
Commitments and Contingencies - Textual (Details) - USD ($) | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Long Term Purchase Commitment [Line Items] | |||
Liabilities recorded for obligations | $ 0 | $ 0 | |
Rent expense | 2,100,000 | $ 1,800,000 | $ 1,800,000 |
Inventories [Member] | |||
Long Term Purchase Commitment [Line Items] | |||
Purchase commitment | $ 42,800,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Future minimum lease payments (Details) $ in Thousands | Dec. 29, 2018USD ($) |
Future minimum lease payments under operating leases | |
2,019 | $ 3,002 |
2,020 | 1,891 |
2,021 | 1,051 |
2,022 | 970 |
2,023 | 750 |
Thereafter | 696 |
Total | $ 8,360 |
Net Income Per Share (Details)
Net Income Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Reconciliation of the basic and diluted net income per share computations | |||
Weighted average common shares outstanding used in basic net income per share calculation | 24,120 | 25,334 | 24,655 |
Potential dilutive common stock equivalents, using treasury stock method | 480 | 585 | 498 |
Weighted average shares used in diluted net income per share calculation | 24,600 | 25,919 | 25,153 |
Net Income Per Share - Textual
Net Income Per Share - Textual (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||
Weighted average common share equivalents consisting of stock options included in the calculation of diluted net income per share | 480 | 585 | 498 |
Stockholders' Equity and Stoc_3
Stockholders' Equity and Stock-Based Compensation - Textual (Details) - USD ($) | 12 Months Ended | |||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Nov. 15, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares of common stock authorized | 47,000,000 | 47,000,000 | ||
Common stock, par value per share | $ 0.001 | $ 0.001 | ||
Shares of preferred stock authorized | 3,000,000 | 3,000,000 | ||
Preferred stock, par value per share | $ 0.001 | $ 0.001 | ||
Number of options granted | 0 | 0 | 0 | |
Closing stock price | $ 27.65 | |||
Intrinsic value of options exercised | $ 2,500,000 | $ 3,100,000 | $ 2,700,000 | |
Fair value of options vested | $ 300,000 | 700,000 | ||
Excess tax benefit | $ 1,000,000 | |||
Employee Stock Purchase Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum percentage of salary withholdings | 10.00% | |||
Purchase price of common stock, percent | 85.00% | |||
Shares remaining for issuance under the ESPP | 443,694 | |||
Shares purchased under the ESPP | 70,214 | 122,298 | 212,619 | |
Weighted average price of shares issued (in dollars per share) | $ 21.46 | $ 21.19 | $ 14.29 | |
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares per unit granted | 1.7 | |||
Granted (in shares) | 484,087 | 454,600 | ||
Unrecognized compensation costs | $ 12,500,000 | |||
Weighted average remaining amortization period for unrecognized compensation costs | 1 year 9 months | |||
Cancelled (in shares) | 142,621 | 96,494 | ||
Restricted Stock Units (RSUs) [Member] | 2005 Equity Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 822,948 | 772,820 | ||
Cancelled (in shares) | 242,456 | 164,040 | ||
Restricted Stock Units (RSUs) [Member] | Key Employees [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 484,087 | 454,600 | ||
Restricted Stock Units (RSUs) [Member] | Key Employees [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Period of vesting | 3 years | |||
Performance-Based Restricted Stock Units (PSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 63,133 | 122,050 | ||
Percent of granted shares that will vest if target stock price performance is achieved | 66.70% | |||
Maximum percent of granted shares that will vest if maximum stock price performance is achieved | 100.00% | |||
Cumulative maximum number of shares expected to vest for all measurement period | 62,500 | |||
Cancelled (in shares) | 32,991 | 61,100 | ||
Performance-Based Restricted Stock Units (PSUs) [Member] | 2005 Equity Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 107,327 | 207,485 | ||
Cancelled (in shares) | 56,085 | 103,870 | ||
Performance-Based Restricted Stock Units (PSUs) [Member] | Tranche One [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Period of vesting | 1 year | |||
Performance-Based Restricted Stock Units (PSUs) [Member] | Tranche Two [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Period of vesting | 2 years | |||
Performance-Based Restricted Stock Units (PSUs) [Member] | Tranche Three [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Period of vesting | 3 years | |||
Repurchases of Common Stock Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum amount of common stock approved to repurchase, Value | $ 50,000,000 | |||
Stock repurchase program completed month and year | 2018-02 |
Stockholders' Equity and Stoc_4
Stockholders' Equity and Stock-Based Compensation - Share Repurchases (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Number of shares of common stock repurchased | 896,187 | 1,065,848 |
Weighted average price per share | $ 25.65 | $ 25.33 |
Total cost of repurchase | $ 22,987 | $ 26,999 |
Amount available for repurchase at end of period | $ 23,001 |
Stockholders' Equity and Stoc_5
Stockholders' Equity and Stock-Based Compensation - Option Plans (Details) | Dec. 29, 2018shares |
2005 Equity Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares Authorized | 8,292,594 |
2000 Employee Stock Option Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares Authorized | 2,450,000 |
2000 Director Stock Option Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares Authorized | 250,000 |
Accent Optical Technologies, Inc. Stock Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares Authorized | 205,003 |
Stockholders' Equity and Stoc_6
Stockholders' Equity and Stock-Based Compensation - Employee Stock Purchase Plan Assumptions (Details) - Employee Stock Purchase Plan [Member] | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Assumption of stock option's fair value | |||
Expected life | 6 months | 6 months | 6 months |
Volatility | 52.46% | 37.20% | 38.70% |
Risk free interest rate | 2.14% | 0.91% | 0.44% |
Dividends | 0.00% | 0.00% | 0.00% |
Stockholders' Equity and Stoc_7
Stockholders' Equity and Stock-Based Compensation - Summary of Activity of Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Activity of stock option plans [Roll Forward] | |||
Number of Shares Outstanding (Options), Beginning Balance (in shares) | 216,326 | 440,545 | |
Number of Shares Outstanding (Options), Exercised (in shares) | (132,932) | (223,364) | |
Number of Shares Outstanding (Options), Cancelled/Forfeited (in shares) | 0 | (855) | (176,587) |
Number of Shares Outstanding (Options), Ending Balance (in shares) | 83,394 | 216,326 | 440,545 |
Number of Shares Outstanding (Options), Exercisable (in shares) | 83,394 | ||
Weighted average exercise price for stock option plans [Roll Forward] | |||
Weighted Average Exercise Price, Beginning Balance (in dollars per share) | $ 16.82 | $ 15.06 | |
Weighted Average Exercise Price, Exercised (in dollars per share) | 17.46 | $ 13.35 | |
Weighted Average Exercise Price, Cancelled/Forfeited (in dollars per share) | 16.63 | ||
Weighted Average Exercise Price, Ending Balance (in dollars per share) | 15.80 | $ 16.82 | |
Weighted Average Exercise Price, Exercisable (in dollars per share) | $ 15.80 | ||
Weighted Average Remaining Contractual Term, Outstanding | 1 year 2 months 8 days | 1 year 9 months 3 days | 2 years 1 month 13 days |
Weighted Average Remaining Contractual Term, Exercisable | 1 year 2 months 8 days | ||
Aggregate Intrinsic Value, Outstanding | $ 988 | $ 1,752 | $ 4,405 |
Aggregate Intrinsic Value, Exercisable | $ 988 |
Stockholders' Equity and Stoc_8
Stockholders' Equity and Stock-Based Compensation - Ranges of Outstanding and Exercisable Options (Details) - $ / shares | 12 Months Ended | |||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Outstanding, Number Outstanding (in shares) | 83,394 | 216,326 | 440,545 | |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 1 year 2 months 8 days | 1 year 9 months 3 days | 2 years 1 month 13 days | |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 15.80 | $ 16.82 | $ 15.06 | |
Options Exercisable, Number Exercisable (in shares) | 83,394 | |||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 15.80 | |||
$12.98-$14.59 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise Price, Lower Range Limit | 12.98 | |||
Exercise Price, Upper Range Limit | 14.59 | |||
Options Outstanding, Number Outstanding (in shares) | 1,694 | |||
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 1 year 6 months 29 days | |||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 14.03 | |||
Options Exercisable, Number Exercisable (in shares) | 1,694 | |||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 14.03 | |||
$14.95-$14.95 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise Price, Lower Range Limit | 14.95 | |||
Exercise Price, Upper Range Limit | 14.95 | |||
Options Outstanding, Number Outstanding (in shares) | 1,025 | |||
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 1 year 5 months 26 days | |||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 14.95 | |||
Options Exercisable, Number Exercisable (in shares) | 1,025 | |||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 14.95 | |||
$15.00-$15.00 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise Price, Lower Range Limit | 15 | |||
Exercise Price, Upper Range Limit | 15 | |||
Options Outstanding, Number Outstanding (in shares) | 10,000 | |||
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 7 months 13 days | |||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 15 | |||
Options Exercisable, Number Exercisable (in shares) | 10,000 | |||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 15 | |||
$15.61-$15.61 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise Price, Lower Range Limit | 15.61 | |||
Exercise Price, Upper Range Limit | 15.61 | |||
Options Outstanding, Number Outstanding (in shares) | 2,500 | |||
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 1 year 1 month 2 days | |||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 15.61 | |||
Options Exercisable, Number Exercisable (in shares) | 2,500 | |||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 15.61 | |||
$15.65-$15.65 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise Price, Lower Range Limit | 15.65 | |||
Exercise Price, Upper Range Limit | 15.65 | |||
Options Outstanding, Number Outstanding (in shares) | 3,375 | |||
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 1 year 2 months 15 days | |||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 15.65 | |||
Options Exercisable, Number Exercisable (in shares) | 3,375 | |||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 15.65 | |||
$15.85-$15.85 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise Price, Lower Range Limit | 15.85 | |||
Exercise Price, Upper Range Limit | 15.85 | |||
Options Outstanding, Number Outstanding (in shares) | 60,000 | |||
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 1 year 2 months 12 days | |||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 15.85 | |||
Options Exercisable, Number Exercisable (in shares) | 60,000 | |||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 15.85 | |||
$16.00-$16.00 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise Price, Lower Range Limit | 16 | |||
Exercise Price, Upper Range Limit | 16 | |||
Options Outstanding, Number Outstanding (in shares) | 100 | |||
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 1 year 8 months 19 days | |||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 16 | |||
Options Exercisable, Number Exercisable (in shares) | 100 | |||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 16 | |||
$17.33-$17.33 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise Price, Lower Range Limit | 17.33 | |||
Exercise Price, Upper Range Limit | 17.33 | |||
Options Outstanding, Number Outstanding (in shares) | 2,500 | |||
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 1 year 10 months 13 days | |||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 17.33 | |||
Options Exercisable, Number Exercisable (in shares) | 2,500 | |||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 17.33 | |||
$18.22-$18.22 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise Price, Lower Range Limit | 18.22 | |||
Exercise Price, Upper Range Limit | 18.22 | |||
Options Outstanding, Number Outstanding (in shares) | 1,200 | |||
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 2 years 1 month 28 days | |||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 18.22 | |||
Options Exercisable, Number Exercisable (in shares) | 1,200 | |||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 18.22 | |||
$18.79-$18.79 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise Price, Lower Range Limit | 18.79 | |||
Exercise Price, Upper Range Limit | $ 18.79 | |||
Options Outstanding, Number Outstanding (in shares) | 1,000 | |||
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 2 years 2 months 26 days | |||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 18.79 | |||
Options Exercisable, Number Exercisable (in shares) | 1,000 | |||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 18.79 |
Stockholders' Equity and Stoc_9
Stockholders' Equity and Stock-Based Compensation - Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Activity for RSUs [Roll Forward] | ||
Number of units, Beginning balance (in shares) | 790,299 | 819,785 |
Number of units, Granted (in shares) | 484,087 | 454,600 |
Number of units, Released (in shares) | (362,762) | (387,592) |
Number of units, Cancelled (in shares) | (142,621) | (96,494) |
Number of units, Ending balance (in shares) | 769,003 | 790,299 |
Weighted Average Fair Value for RSUs [Roll Forward] | ||
Weighted Average Fair Value, Beginning balance (in dollars per share) | $ 22.46 | $ 16.79 |
Weighted Average Fair Value, Granted (in dollars per share) | 36.57 | 27.12 |
Weighted Average Fair Value, Released (in dollars per share) | 20.79 | 16.81 |
Weighted Average Fair Value, Cancelled (in dollars per share) | 26.44 | 19.01 |
Weighted Average Fair Value, Ending balance (in dollars per share) | $ 31.39 | $ 22.46 |
Stockholders' Equity and Sto_10
Stockholders' Equity and Stock-Based Compensation - Performance Stock Units Activity (Details) - Performance-Based Restricted Stock Units (PSUs) [Member] - $ / shares | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Activity for PSUs [Roll Forward] | |||
Number of units, Beginning balance (in shares) | 129,950 | 107,500 | |
Number of units, Granted (in shares) | 63,133 | 122,050 | |
Number of units, Released (in shares) | (47,929) | (38,500) | |
Number of units, Cancelled (in shares) | (32,991) | (61,100) | |
Number of units, Ending balance (in shares) | 112,163 | 129,950 | 107,500 |
Weighted Average Fair Value for PSUs [Roll Forward] | |||
Weighted Average Fair Value, Beginning balance (in dollars per share) | $ 15.60 | $ 9.94 | |
Weighted Average Fair Value, Granted (in dollars per share) | 24.45 | 20.51 | $ 8.52 |
Weighted Average Fair Value, Released (in dollars per share) | 12.10 | 10.41 | |
Weighted Average Fair Value, Cancelled (in dollars per share) | 24.52 | 19.41 | |
Weighted Average Fair Value, Ending balance (in dollars per share) | $ 22.37 | $ 15.60 | $ 9.94 |
Stockholders' Equity and Sto_11
Stockholders' Equity and Stock-Based Compensation - Performance Stock Units Valuation Assumptions (Details) - Performance-Based Restricted Stock Units (PSUs) [Member] - $ / shares | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant Date Fair Values Per Share (in dollars per share) | $ 24.45 | $ 20.51 | $ 8.52 |
Expected Dividend | 0.00% | 0.00% | 0.00% |
Risk free interest rate | 0.92% | ||
Range of risk-free interest rates, minimum | 2.39% | 1.74% | |
Range of risk-free interest rates, maximum | 2.63% | 1.84% | |
Range of expected volatilities for peer group, minimum | 22.00% | 22.00% | 22.00% |
Range of expected volatilities for peer group, maximum | 66.00% | 66.00% | 93.00% |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant Date Fair Values Per Share (in dollars per share) | $ 20.73 | $ 14.57 | |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant Date Fair Values Per Share (in dollars per share) | $ 25.18 | $ 26.75 |
Stockholders' Equity and Sto_12
Stockholders' Equity and Stock-Based Compensation - Stock Option Plans Activity Including Options, RSUs and PSUs (Details) - shares | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Activity of stock option plans including options and RSUs [Roll Forward] | |||
Additional Shares Authorized, (in shares) | 0 | 1,000,000 | 0 |
Options cancelled (in shares) | 0 | 855 | 176,587 |
Options - expired plan shares (in shares) | 0 | 0 | (116,192) |
Stock Options, RSUs and PSUs [Member] | |||
Activity of stock option plans including options and RSUs [Roll Forward] | |||
Number of Shares Outstanding (Options), Beginning Balance (in shares) | 1,874,765 | 1,334,581 | 1,916,589 |
Number of Shares Outstanding (Options), Ending Balance (in shares) | 1,243,031 | 1,874,765 | 1,334,581 |
Restricted Stock Units - Equivalent Shares [Member] | |||
Activity of stock option plans including options and RSUs [Roll Forward] | |||
Granted (in shares) | (822,948) | (772,820) | (810,334) |
Cancelled (in shares) | 242,456 | 164,040 | 92,230 |
RSUs - shares issued to satisfy tax withholding obligations (in shares) | 0 | 251,724 | 179,117 |
Performance Stock Units - Equivalent Shares [Member] | |||
Activity of stock option plans including options and RSUs [Roll Forward] | |||
Granted (in shares) | (107,327) | (207,485) | (114,750) |
Cancelled (in shares) | 56,085 | 103,870 | 11,334 |
Stockholders' Equity and Sto_13
Stockholders' Equity and Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense related to employee stock options and employee stock purchases | $ 11,382 | $ 8,819 | $ 7,666 |
Cost of products [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense related to employee stock options and employee stock purchases | 704 | 842 | 403 |
Cost of service [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense related to employee stock options and employee stock purchases | 772 | 616 | 509 |
Research and development [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense related to employee stock options and employee stock purchases | 2,450 | 1,720 | 1,408 |
Selling [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense related to employee stock options and employee stock purchases | 2,786 | 2,323 | 2,046 |
General and administrative [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense related to employee stock options and employee stock purchases | $ 4,670 | $ 3,318 | $ 3,300 |
Defined Benefit Pension Plan (D
Defined Benefit Pension Plan (Details) - Pension Plans, Defined Benefit [Member] - USD ($) $ in Millions | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0.3 | $ 0.3 | $ 0.3 |
Net funding deficiency of the Benefit Plan | $ 0.2 | $ 0.5 | $ 0.4 |
Income Taxes - Income (Loss) Be
Income Taxes - Income (Loss) Before Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 52,836 | $ 34,238 | $ 25,372 |
Foreign | 14,688 | 9,060 | 3,763 |
Income (loss) before income taxes | $ 67,524 | $ 43,298 | $ 29,135 |
Income Taxes - Provision (Benef
Income Taxes - Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Current: | |||
Federal | $ 616 | $ 3,250 | $ 697 |
State | 142 | 9 | 85 |
Foreign | 5,054 | 2,998 | 2,111 |
Total current | 5,812 | 6,257 | 2,893 |
Deferred: | |||
Federal | 3,875 | 6,314 | (16,641) |
State | (18) | 53 | (320) |
Foreign | 207 | 472 | (832) |
Total deferred | 4,064 | 6,839 | (17,793) |
Provision (benefit) for income taxes | $ 9,876 | $ 13,096 | $ (14,900) |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Deferred tax assets: | ||
Reserves and accruals | $ 5,704 | $ 5,797 |
Deferred revenue | 241 | 240 |
Shared-based compensation | 1,644 | 1,483 |
Tax credit carry-forwards | 6,920 | 9,669 |
Net operating losses | 6,022 | 9,755 |
Depreciation & amortization | (7,528) | (1,525) |
Other | 532 | 207 |
Total deferred tax assets | 13,535 | 25,626 |
Less: Valuation allowance | (10,966) | (13,702) |
Total deferred tax assets net of valuation allowance | 2,569 | 11,924 |
Deferred tax liabilities: | ||
Depreciation & amortization | (13) | (12) |
Other | (149) | (167) |
Total deferred tax liabilities | (162) | (179) |
Net deferred tax assets | $ 2,407 | $ 11,745 |
Income Taxes - Textual (Details
Income Taxes - Textual (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
Operating Loss Carryforwards [Line Items] | ||||
Change in amount of operating loss carryforwards valuation allowance | $ (2,700) | $ 1,500 | ||
Maximum amount company recognize from unrecognized tax benefit | 8,108 | $ 7,151 | $ 6,477 | $ 6,961 |
Unrecognized tax benefits that would impact effective tax rate if recognized | 4,600 | |||
California [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | 23,500 | |||
State research and experimental tax credit carryforward | 10,200 | |||
Change In valuation allowance for deferred tax assets | 500 | |||
Other States [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | 1,700 | |||
Foreign Tax Authority [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | 18,300 | |||
Federal [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
State research and experimental tax credit carryforward | 5,400 | |||
Germany[Member] | Foreign Tax Authority [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Change In valuation allowance for deferred tax assets | (4,800) | |||
Switzerland [Member] | Foreign Tax Authority [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Change In valuation allowance for deferred tax assets | $ 1,600 |
Income Taxes - Income Tax Rate
Income Taxes - Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Income Tax Expense Benefit Continuing Operations Income Tax Reconciliation [Abstract] | |||
Income taxes computed at U.S. statutory rate | $ 14,180 | $ 15,153 | $ 10,197 |
State income taxes | 379 | 227 | 223 |
Foreign tax rate differential | (2,382) | 794 | 3,502 |
Change in valuation allowance | 3,037 | 1,490 | (25,738) |
Non-deductible equity compensation | (1,241) | (1,803) | 380 |
Tax credits | (3,876) | (2,336) | (3,191) |
Domestic production activities deduction | (608) | (354) | |
Liabilities for uncertain tax positions | 12 | 18 | 67 |
Other, net | (233) | 161 | 14 |
Provision (benefit) for income taxes | $ 9,876 | $ 13,096 | $ (14,900) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Reconciliation Of Unrecognized Tax Benefits Excluding Amounts Pertaining To Examined Tax Returns Roll Forward | |||
Unrecognized tax benefits - beginning of the period | $ 7,151 | $ 6,477 | $ 6,961 |
Gross increases-tax positions in prior period | 132 | 32 | 23 |
Gross decreases-tax positions in prior period | (1,193) | ||
Gross increases-current-period tax positions | 1,000 | 723 | 686 |
Lapse of statute of limitations | (175) | (81) | |
Unrecognized tax benefits - end of the period | $ 8,108 | $ 7,151 | $ 6,477 |
Segment, Geographic, and Sign_3
Segment, Geographic, and Significant Customer Information - Textual (Details) - segment | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Concentration Risk [Line Items] | |||
Number of operating segments | 1 | ||
Samsung Electronics Co. Ltd. [Member] | Sales [Member] | Customer Concentration Risk [Member] | Minimum [Member] | |||
Concentration Risk [Line Items] | |||
Customer concentration risk percentage | 10.00% | 10.00% | |
Samsung Electronics Co. Ltd. [Member] | Accounts Receivable [Member] | Credit Concentration Risk [Member] | Minimum [Member] | |||
Concentration Risk [Line Items] | |||
Customer concentration risk percentage | 10.00% | ||
SK Hynix [Member] | Sales [Member] | Customer Concentration Risk [Member] | Minimum [Member] | |||
Concentration Risk [Line Items] | |||
Customer concentration risk percentage | 10.00% | 10.00% | 10.00% |
SK Hynix [Member] | Accounts Receivable [Member] | Credit Concentration Risk [Member] | Minimum [Member] | |||
Concentration Risk [Line Items] | |||
Customer concentration risk percentage | 10.00% | ||
Toshiba Corporation [Member] | Sales [Member] | Customer Concentration Risk [Member] | Minimum [Member] | |||
Concentration Risk [Line Items] | |||
Customer concentration risk percentage | 10.00% | 10.00% | |
Toshiba Corporation [Member] | Accounts Receivable [Member] | Credit Concentration Risk [Member] | Minimum [Member] | |||
Concentration Risk [Line Items] | |||
Customer concentration risk percentage | 10.00% | ||
Intel Corporation [Member] | Sales [Member] | Customer Concentration Risk [Member] | Minimum [Member] | |||
Concentration Risk [Line Items] | |||
Customer concentration risk percentage | 10.00% | 10.00% | 10.00% |
Intel Corporation [Member] | Accounts Receivable [Member] | Credit Concentration Risk [Member] | Minimum [Member] | |||
Concentration Risk [Line Items] | |||
Customer concentration risk percentage | 10.00% | ||
Micron Technology, Inc. [Member] | Sales [Member] | Customer Concentration Risk [Member] | Minimum [Member] | |||
Concentration Risk [Line Items] | |||
Customer concentration risk percentage | 10.00% | 10.00% | |
Micron Technology, Inc. [Member] | Accounts Receivable [Member] | Credit Concentration Risk [Member] | Minimum [Member] | |||
Concentration Risk [Line Items] | |||
Customer concentration risk percentage | 10.00% | ||
Taiwan Semiconductor Manufacturing Company Limited [Member] | Sales [Member] | Customer Concentration Risk [Member] | Minimum [Member] | |||
Concentration Risk [Line Items] | |||
Customer concentration risk percentage | 10.00% |
Segment, Geographic, and Sign_4
Segment, Geographic, and Significant Customer Information - Revenue Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Net revenues: | |||
Total net revenues | $ 324,523 | $ 258,621 | $ 221,129 |
South Korea [Member] | |||
Net revenues: | |||
Total net revenues | 108,938 | 94,082 | 44,735 |
China [Member] | |||
Net revenues: | |||
Total net revenues | 72,305 | 29,826 | 43,460 |
Japan [Member] | |||
Net revenues: | |||
Total net revenues | 64,252 | 41,979 | 26,604 |
United States [Member] | |||
Net revenues: | |||
Total net revenues | 29,415 | 33,983 | 29,887 |
Singapore [Member] | |||
Net revenues: | |||
Total net revenues | 22,167 | 21,810 | 37,096 |
Taiwan [Member] | |||
Net revenues: | |||
Total net revenues | 14,012 | 20,147 | 27,189 |
Other [Member] | |||
Net revenues: | |||
Total net revenues | $ 13,434 | $ 16,794 | $ 12,158 |
Segment, Geographic, and Sign_5
Segment, Geographic, and Significant Customer Information - Long-lived Tangible Assets (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Long-lived tangible assets: | ||
Total long-lived tangible assets | $ 47,900 | $ 44,810 |
United States [Member] | ||
Long-lived tangible assets: | ||
Total long-lived tangible assets | 46,325 | 43,427 |
Taiwan [Member] | ||
Long-lived tangible assets: | ||
Total long-lived tangible assets | 275 | 510 |
South Korea [Member] | ||
Long-lived tangible assets: | ||
Total long-lived tangible assets | 420 | 576 |
Japan [Member] | ||
Long-lived tangible assets: | ||
Total long-lived tangible assets | 59 | 60 |
Singapore [Member] | ||
Long-lived tangible assets: | ||
Total long-lived tangible assets | 618 | 92 |
All Other [Member] | ||
Long-lived tangible assets: | ||
Total long-lived tangible assets | $ 203 | $ 145 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Allowance for Doubtful Accounts Receivable [Member] | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | $ 126 | $ 73 | $ 150 |
Additions to Allowance | 129 | 78 | |
Charges Utilized/Write-offs | (85) | (25) | (77) |
Balance at end of period | 170 | 126 | 73 |
Valuation Allowance for Deferred Tax Assets [Member] | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | 13,702 | 10,980 | 36,786 |
Additions to Allowance | 470 | 2,984 | 1,643 |
Charges Utilized/Write-offs | (3,206) | (262) | (27,449) |
Balance at end of period | $ 10,966 | $ 13,702 | $ 10,980 |