Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Oct. 01, 2022 | Oct. 27, 2022 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0000855658 | |
Entity Registrant Name | Lattice Semiconductor Corp | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2022 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 01, 2022 | |
Document Transition Report | false | |
Entity File Number | 000-18032 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 93-0835214 | |
Entity Address, Address Line One | 5555 NE Moore Court | |
Entity Address, City or Town | Hillsboro | |
Entity Address, State or Province | OR | |
Entity Address, Postal Zip Code | 97124 | |
City Area Code | 503 | |
Local Phone Number | 268-8000 | |
Title of 12(b) Security | Common Stock, $.01 par value | |
Trading Symbol | LSCC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 137,059,418 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
Revenue | $ 172,509 | $ 131,911 | $ 484,396 | $ 373,532 |
Cost of revenue | 53,777 | 49,086 | 154,412 | 142,937 |
Gross margin | 118,732 | 82,825 | 329,984 | 230,595 |
Operating expenses: | ||||
Research and development | 34,820 | 28,769 | 100,988 | 80,289 |
Selling, general, and administrative | 31,926 | 26,272 | 89,721 | 76,971 |
Amortization of acquired intangible assets | 869 | 603 | 2,908 | 1,809 |
Restructuring charges | 2,315 | 166 | 2,505 | 546 |
Acquisition related charges | 0 | 0 | 511 | 0 |
Total operating expenses | 69,930 | 55,810 | 196,633 | 159,615 |
Income from operations | 48,802 | 27,015 | 133,351 | 70,980 |
Interest expense | (1,267) | (661) | (2,866) | (2,081) |
Other (expense) income, net | (820) | (87) | (1,085) | (384) |
Income before income taxes | 46,715 | 26,267 | 129,400 | 68,515 |
Income tax expense (benefit) | 356 | (472) | 2,431 | 1,125 |
Net income | $ 46,359 | $ 26,739 | $ 126,969 | $ 67,390 |
Net income per share: | ||||
Basic (in dollars per share) | $ 0.34 | $ 0.20 | $ 0.92 | $ 0.49 |
Diluted (in dollars per share) | $ 0.33 | $ 0.19 | $ 0.90 | $ 0.47 |
Shares used in per share calculations: | ||||
Basic (in shares) | 137,267 | 136,638 | 137,397 | 136,476 |
Diluted (in shares) | 139,935 | 141,632 | 140,921 | 142,163 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
Net income | $ 46,359 | $ 26,739 | $ 126,969 | $ 67,390 |
Other comprehensive income (loss): | ||||
Translation adjustment | (987) | (19) | (2,215) | (68) |
Comprehensive income | $ 45,372 | $ 26,720 | $ 124,754 | $ 67,322 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Oct. 01, 2022 | Jan. 01, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 118,766 | $ 131,570 |
Accounts receivable, net of allowance for credit losses | 100,446 | 79,859 |
Inventories, net | 93,964 | 67,594 |
Prepaid expenses and other current assets | 27,132 | 22,328 |
Total current assets | 340,308 | 301,351 |
Property and equipment, less accumulated depreciation of $114,948 at October 1, 2022 and $109,905 at January 1, 2022 | 45,217 | 38,094 |
Operating lease right-of-use assets | 17,372 | 23,818 |
Intangible assets, net | 26,085 | 29,782 |
Goodwill | 315,358 | 315,358 |
Other long-term assets | 14,605 | 18,091 |
Total assets | 758,945 | 726,494 |
Current liabilities: | ||
Accounts payable | 43,635 | 34,597 |
Accrued expenses | 35,127 | 26,444 |
Accrued payroll obligations | 31,516 | 27,967 |
Current portion of long-term debt | 0 | 17,173 |
Total current liabilities | 110,278 | 106,181 |
Long-term debt, net of current portion | 148,685 | 140,760 |
Long-term operating lease liabilities, net of current portion | 14,169 | 19,248 |
Other long-term liabilities | 44,082 | 48,672 |
Total liabilities | 317,214 | 314,861 |
Contingencies (Note 12) | ||
Stockholders' equity: | ||
Preferred stock, $.01 par value, 10,000,000 shares authorized, none issued and outstanding | 0 | 0 |
Common stock, $.01 par value, 300,000,000 shares authorized; 137,028,000 shares issued and outstanding as of October 1, 2022 and 137,239,000 shares issued and outstanding as of January 1, 2022 | 1,370 | 1,372 |
Additional paid-in capital | 607,034 | 701,688 |
Accumulated deficit | (163,007) | (289,976) |
Accumulated other comprehensive loss | (3,666) | (1,451) |
Total stockholders' equity | 441,731 | 411,633 |
Total liabilities and stockholders' equity | $ 758,945 | $ 726,494 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) $ in Thousands | Oct. 01, 2022 | Jan. 01, 2022 |
Accumulated depreciation | $ 114,948 | $ 109,905 |
Preferred stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 137,028,000 | 137,239,000 |
Common stock, shares outstanding (in shares) | 137,028,000 | 137,239,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 01, 2022 | Oct. 02, 2021 | Oct. 03, 2022 | Oct. 01, 2022 | Oct. 02, 2021 | |
Cash flows from operating activities: | |||||
Net income | $ 46,359 | $ 26,739 | $ 126,969 | $ 67,390 | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||
Depreciation and amortization | 21,498 | 17,839 | |||
Stock-based compensation expense | 41,207 | 32,624 | |||
Amortization of right-of-use assets | 4,995 | 4,926 | |||
Impairment of operating lease right-of-use asset | 1,149 | 0 | |||
Other non-cash adjustments | 791 | 157 | |||
Changes in assets and liabilities: | |||||
Accounts receivable, net | (20,587) | (15,025) | |||
Inventories, net | (26,370) | (1,506) | |||
Prepaid expenses and other assets | (2,033) | (224) | |||
Accounts payable | 9,038 | 8,793 | |||
Accrued expenses | 2,190 | (1,464) | |||
Accrued payroll obligations | 3,549 | 7,337 | |||
Operating lease liabilities, current and long-term portions | (5,571) | (4,784) | |||
Net cash provided by (used in) operating activities | 156,825 | 116,063 | |||
Cash flows from investing activities: | |||||
Capital expenditures | (13,080) | (7,118) | |||
Cash paid for software and intellectual property licenses | (8,322) | (9,534) | |||
Net cash provided by (used in) investing activities | (21,402) | (16,652) | |||
Cash flows from financing activities: | |||||
Restricted stock unit tax withholdings | (50,043) | (41,587) | |||
Proceeds from issuance of common stock | 4,317 | 5,240 | |||
Repurchase of common stock | (90,137) | (55,126) | |||
Proceeds from long-term debt, net of issuance costs | 148,601 | 0 | |||
Repayment of long-term debt | (158,750) | (8,750) | |||
Net cash provided by (used in) financing activities | (146,012) | (100,223) | |||
Effect of exchange rate change on cash | (2,215) | (68) | |||
Net increase (decrease) in cash and cash equivalents | (12,804) | (880) | |||
Beginning cash and cash equivalents | $ 131,570 | 131,570 | 182,332 | ||
Ending cash and cash equivalents | $ 118,766 | $ 181,452 | 118,766 | 181,452 | |
Supplemental disclosure of cash flow information and non-cash investing and financing activities: | |||||
Interest paid | 2,203 | 1,755 | |||
Operating lease payments | $ 5,500 | 5,500 | 5,786 | ||
Income taxes paid, net of refunds | 4,115 | 2,842 | |||
Accrued purchases of plant and equipment | 4,822 | 351 | |||
Operating lease right-of-use assets obtained in exchange for lease obligations | $ 639 | $ 7,550 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balances (in shares) at Jan. 02, 2021 | 136,236,000 | ||||
Balances at Jan. 02, 2021 | $ 1,362 | $ 770,711 | $ (385,898) | $ (1,748) | $ 384,427 |
Net income | 0 | 0 | 67,390 | 0 | 67,390 |
Other comprehensive income (loss) | 0 | 0 | 0 | (68) | (68) |
Total comprehensive income | 67,322 | ||||
Common stock issued in connection with employee equity incentive plans, net of shares withheld for employee taxes (in shares) | 1,746,000 | ||||
Common stock issued in connection with employee equity incentive plans, net of shares withheld for employee taxes | $ 18 | (36,365) | 0 | 0 | (36,347) |
Stock-based compensation expense | $ 0 | 32,624 | 0 | 0 | 32,624 |
Repurchase of common stock (in shares) | (1,081,000) | ||||
Repurchase of common stock | $ (11) | (55,115) | 0 | 0 | (55,126) |
Balances (in shares) at Oct. 02, 2021 | 136,901,000 | ||||
Balances at Oct. 02, 2021 | $ 1,369 | 711,855 | (318,508) | (1,816) | 392,900 |
Balances (in shares) at Jul. 03, 2021 | 136,344,000 | ||||
Balances at Jul. 03, 2021 | $ 1,363 | 742,996 | (345,247) | (1,797) | 397,315 |
Net income | 0 | 0 | 26,739 | 0 | 26,739 |
Other comprehensive income (loss) | 0 | 0 | 0 | (19) | (19) |
Total comprehensive income | 26,720 | ||||
Common stock issued in connection with employee equity incentive plans, net of shares withheld for employee taxes (in shares) | 809,000 | ||||
Common stock issued in connection with employee equity incentive plans, net of shares withheld for employee taxes | $ 9 | (26,381) | 0 | 0 | (26,372) |
Stock-based compensation expense | $ 0 | 10,250 | 0 | 0 | 10,250 |
Repurchase of common stock (in shares) | (252,000) | ||||
Repurchase of common stock | $ (3) | (15,010) | 0 | 0 | (15,013) |
Balances (in shares) at Oct. 02, 2021 | 136,901,000 | ||||
Balances at Oct. 02, 2021 | $ 1,369 | 711,855 | (318,508) | (1,816) | $ 392,900 |
Balances (in shares) at Jan. 01, 2022 | 137,239,000 | 137,239,000 | |||
Balances at Jan. 01, 2022 | $ 1,372 | 701,688 | (289,976) | (1,451) | $ 411,633 |
Net income | 0 | 0 | 126,969 | 0 | 126,969 |
Other comprehensive income (loss) | 0 | 0 | 0 | (2,215) | (2,215) |
Total comprehensive income | 124,754 | ||||
Common stock issued in connection with employee equity incentive plans, net of shares withheld for employee taxes (in shares) | 1,452,000 | ||||
Common stock issued in connection with employee equity incentive plans, net of shares withheld for employee taxes | $ 15 | (45,741) | 0 | 0 | (45,726) |
Stock-based compensation expense | $ 0 | 41,207 | 0 | 0 | 41,207 |
Repurchase of common stock (in shares) | (1,663,000) | ||||
Repurchase of common stock | $ (17) | (90,120) | 0 | 0 | $ (90,137) |
Balances (in shares) at Oct. 01, 2022 | 137,028,000 | 137,028,000 | |||
Balances at Oct. 01, 2022 | $ 1,370 | 607,034 | (163,007) | (3,666) | $ 441,731 |
Balances (in shares) at Jul. 02, 2022 | 137,263,000 | ||||
Balances at Jul. 02, 2022 | $ 1,373 | 646,593 | (209,366) | (2,679) | 435,921 |
Net income | 0 | 0 | 46,359 | 0 | 46,359 |
Other comprehensive income (loss) | 0 | 0 | 0 | (987) | (987) |
Total comprehensive income | 45,372 | ||||
Common stock issued in connection with employee equity incentive plans, net of shares withheld for employee taxes (in shares) | 450,000 | ||||
Common stock issued in connection with employee equity incentive plans, net of shares withheld for employee taxes | $ 4 | (13,548) | 0 | 0 | (13,544) |
Stock-based compensation expense | $ 0 | 13,958 | 0 | 0 | 13,958 |
Repurchase of common stock (in shares) | (685,000) | ||||
Repurchase of common stock | $ (7) | (39,969) | 0 | 0 | $ (39,976) |
Balances (in shares) at Oct. 01, 2022 | 137,028,000 | 137,028,000 | |||
Balances at Oct. 01, 2022 | $ 1,370 | $ 607,034 | $ (163,007) | $ (3,666) | $ 441,731 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 9 Months Ended |
Oct. 01, 2022 | |
Notes to Financial Statements | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | 1 Lattice Semiconductor Corporation and its subsidiaries (“Lattice,” the “Company,” “we,” “us,” or “our”) develop technologies that we monetize through differentiated programmable logic semiconductor products, silicon-enabling products, system solutions, design services, and licenses. Basis of Presentation and Use of Estimates The accompanying Consolidated Financial Statements are unaudited and have been prepared in accordance with U.S. Generally Accepted Accounting Principles ("U.S. GAAP") and pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). In our opinion, they include all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of results for the interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted as permitted by the SEC's rules and regulations for interim reporting. These Consolidated Financial Statements should be read in conjunction with our audited financial statements and notes thereto included in our Annual Report on Form 10 January 1, 2022 (" 2021 10 The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments affecting the amounts reported in our consolidated condensed financial statements and the accompanying notes. We base our estimates and judgments on historical experience, knowledge of current conditions, and our beliefs of what could occur in the future considering available information. While we believe that our estimates, assumptions, and judgments are reasonable, they are based on information available when made, and because of the uncertainty inherent in these matters, the actual results that we experience may We describe our accounting methods and practices in more detail in our 2021 10 no 2021 10 November 2021 may Certain prior year balances have been reclassified to conform to the current year’s presentation. Fiscal Reporting Periods We report based on a 52 53 December 31. 2022 52 December 31, 2022, 2021 52 January 1, 2022. third 2022 third 2021 October 1, 2022 October 2, 2021 13 39 Concentrations of Risk Potential exposure to concentrations of risk may 90% third 2022 2021 nine October 1, 2022 October 2, 2021, d for 40% and 33% of net accounts receivable at October 1, 2022 and 59% and 28% January 1, 2022 |
Note 2 - Net Income Per Share
Note 2 - Net Income Per Share | 9 Months Ended |
Oct. 01, 2022 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 2 Our calculation of the diluted share count includes the number of shares from our equity awards with market conditions or performance conditions that would be issuable under the terms of such awards at the end of the reporting period. For equity awards with a market condition, the number of shares included in the diluted share count as of the end of each period presented is determined by measuring the achievement of the market condition as of the end of the respective reporting periods. See "Note 9 to our consolidated financial statements for further discussion of our equity awards with market conditions or performance conditions. A summary of basic and diluted Net income per share is presented in the following table: Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, (in thousands, except per share data) 2022 2021 2022 2021 Net income $ 46,359 $ 26,739 $ 126,969 $ 67,390 Shares used in basic Net income per share 137,267 136,638 137,397 136,476 Dilutive effect of stock options, RSUs, ESPP shares, and equity awards with a market condition or performance condition 2,668 4,994 3,524 5,687 Shares used in diluted Net income per share 139,935 141,632 140,921 142,163 Basic Net income per share $ 0.34 $ 0.20 $ 0.92 $ 0.49 Diluted Net income per share $ 0.33 $ 0.19 $ 0.90 $ 0.47 The computation of diluted Net income per share excludes the effects of stock options, restricted stock units ("RSUs"), Employee Stock Purchase Plan ("ESPP") shares, and equity awards with a market condition or performance condition that are antidilutive, aggregating approximately the following number of shares: Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, (in thousands) 2022 2021 2022 2021 Stock options, RSUs, ESPP shares, and equity awards with a market condition or performance condition excluded as they are antidilutive 604 358 535 182 |
Note 3 - Revenue From Contracts
Note 3 - Revenue From Contracts With Customers | 9 Months Ended |
Oct. 01, 2022 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 3 Disaggregation of revenue The following tables provide information about revenue from contracts with customers disaggregated by major class of revenue, revenue by channel, and by geographical market, based on ship-to location of the customer : Three Months Ended Nine Months Ended Revenue by Channel October 1, October 2, October 1, October 2, (In thousands) 2022 2021 2022 2021 Product revenue - Distributors $ 154,417 90 % $ 118,227 90 % $ 433,535 89 % $ 328,174 88 % Product revenue - Direct 12,803 7 % 9,190 7 % 38,263 8 % 33,371 9 % Licensing and services 5,289 3 % 4,494 3 % 12,598 3 % 11,987 3 % Total revenue $ 172,509 100 % $ 131,911 100 % $ 484,396 100 % $ 373,532 100 % Revenue by Geographical Market (In thousands) United States $ 22,918 13 % $ 11,022 8 % $ 61,992 13 % $ 31,804 8 % Other Americas 236 — % 9,239 7 % 4,984 1 % 22,126 6 % Americas 23,154 13 % 20,261 15 % 66,976 14 % 53,930 14 % China 75,933 44 % 76,692 58 % 232,099 48 % 208,632 56 % Japan 26,924 16 % 7,877 6 % 62,784 13 % 24,490 6 % Other Asia 20,003 12 % 14,328 11 % 55,449 11 % 50,620 14 % Asia 122,860 72 % 98,897 75 % 350,332 72 % 283,742 76 % Europe 26,495 15 % 12,753 10 % 67,088 14 % 35,860 10 % Total revenue $ 172,509 100 % $ 131,911 100 % $ 484,396 100 % $ 373,532 100 % Contract balances Our contract assets relate to our rights to consideration for licenses and royalties due to us as a member of the HDMI Founders consortium. The balance results primarily from the amount of estimated revenue related to HDMI that we have recognized to date, but which has not first nine 2022 (In thousands) Contract assets as of Year Ended January 1, 2022 $ 5,672 Revenues recorded during the period 11,499 Transferred to Accounts receivable or collected (10,679 ) Contract assets as of October 1, 2022 $ 6,492 Contract liabilities are included in Accrued expenses on our Consolidated Balance Sheets. The following table summarizes activity during the first nine 2022 (In thousands) Contract liabilities as of Year Ended January 1, 2022 $ 4,768 Accruals for estimated future stock rotation and scrap returns 4,268 Less: Release of accruals for recognized stock rotation and scrap returns (3,144 ) Contract liabilities as of October 1, 2022 $ 5,892 |
Note 4 - Balance Sheet Componen
Note 4 - Balance Sheet Components | 9 Months Ended |
Oct. 01, 2022 | |
Notes to Financial Statements | |
Supplemental Balance Sheet Disclosures [Text Block] | 4 Accounts Receivable Accounts receivable do not 2021 10 October 1, January 1, (In thousands) 2022 2022 Accounts receivable $ 100,446 $ 79,859 Less: Allowance for credit losses — — Accounts receivable, net of allowance for credit losses $ 100,446 $ 79,859 Inventories October 1, January 1, (In thousands) 2022 2022 Work in progress $ 60,798 $ 43,546 Finished goods 33,166 24,048 Total inventories, net $ 93,964 $ 67,594 Accrued Expenses Included in Accrued expenses in the Consolidated Balance Sheets are the following balances: October 1, January 1, (In thousands) 2022 2022 Liability for non-cancelable contracts $ 10,139 $ 9,930 Current portion of operating lease liabilities 5,843 5,696 Contract liability under ASC 606 5,892 4,768 Taxes payable 3,669 3,058 Other accrued expenses 9,584 2,992 Total accrued expenses $ 35,127 $ 26,444 Property and Equipment – Geographic Information Our Property and equipment, net by country at the end of each period was as follows: October 1, January 1, (In thousands) 2022 2022 United States $ 30,829 $ 26,509 Taiwan 8,706 6,555 Philippines 3,178 2,498 China 1,362 1,643 Other 1,142 889 Total foreign property and equipment, net 14,388 11,585 Total property and equipment, net $ 45,217 $ 38,094 Cloud Based Computing Implementation Costs We capitalize the implementation costs for cloud computing arrangements, which are recorded in Prepaid expenses and other current assets and Other long-term assets on our Consolidated Balance Sheets. The following table summarizes activity during the first nine 2022 (In thousands) Cloud based computing implementation costs as of January 1, 2022 $ 2,380 Costs capitalized 61 Amortization (625 ) Cloud based computing implementation costs as of October 1, 2022 $ 1,816 |
Note 5 - Long-term Debt
Note 5 - Long-term Debt | 9 Months Ended |
Oct. 01, 2022 | |
Notes to Financial Statements | |
Long-Term Debt [Text Block] | 5 On September 1, 2022, “2022 five not We drew down an initial $150 million revolving loan at closing, which we used along with $1.9 million of cash to (i) repay the $150.5 million term loan, revolving loan, and accrued interest obligations outstanding under our previous Credit Agreement (the “2019 2022 At our option, the revolving loans accrue interest at a per annum rate based on ranges determined by our consolidated total leverage ratio of either (i) the base rate (as defined in the 2022 1, 3 6 three three In addition, we pay a quarterly commitment fee of 0.20% on the unused portion of the revolving facility. With the amendment of our 2019 2022 third 2022. twelve twelve The revolving loans under the 2022 may September 1, 2027. During the first six 2022 , we paid required quarterly installments totaling $8.8 million on the term loans outstanding under the 2019 The fair value of our long-term debt approximates the carrying value, which is reflected in our Consolidated Balance Sheets as follows: October 1, January 1, (In thousands) 2022 2022 Principal amount $ 150,000 $ 158,750 Unamortized original issuance discount and debt costs (1,315 ) (817 ) Less: Current portion of long-term debt — (17,173 ) Long-term debt, net of current portion and unamortized debt issue costs $ 148,685 $ 140,760 As of October 1, 2022 on the revolving loan was 3.94%. Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, (In thousands) 2022 2021 2022 2021 Contractual interest $ 1,328 $ 568 $ 2,690 $ 1,753 Amortization of original issuance discount and debt costs 76 90 243 274 Total interest expense related to long-term debt $ 1,404 $ 658 $ 2,933 $ 2,027 |
Note 6 - Restructuring
Note 6 - Restructuring | 9 Months Ended |
Oct. 01, 2022 | |
Notes to Financial Statements | |
Restructuring and Related Activities Disclosure [Text Block] | 6 In September 2022, Q2 2019 third first nine 2022. Q2 2019 third first nine 2021. through October 1, 2022 Q2 2019 Under the June 2017 2021 10 third 2022 third 2022 2021, first nine 2022 2021, through October 1, 2022 under June 2017 These expenses were recorded to Restructuring charges on our Consolidated Statements of Operations. The restructuring accrual balance is presented in Accrued expenses and in Other long-term liabilities on our Consolidated Balance Sheets. The following table displays the activity related to our restructuring plans: (In thousands) Severance & Related (1) Lease Termination & Fixed Assets Other (2) Total Accrued Restructuring at January 1, 2022 $ 251 $ 7,130 $ — $ 7,381 Restructuring charges 303 1,562 640 2,505 Costs paid or otherwise settled (154 ) (2,477 ) — (2,631 ) Accrued Restructuring at October 1, 2022 $ 400 $ 6,215 $ 640 $ 7,255 Accrued Restructuring at January 2, 2021 $ 246 $ 8,233 $ 664 $ 9,143 Restructuring charges 15 531 — 546 Costs paid or otherwise settled (165 ) (1,346 ) (664 ) (2,175 ) Accrued Restructuring at October 2, 2021 $ 96 $ 7,418 $ — $ 7,514 ( 1 Includes employee relocation and outplacement costs ( 2 Includes termination fees on the cancellation of certain contracts |
Note 7 - Leases
Note 7 - Leases | 9 Months Ended |
Oct. 01, 2022 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | 7 We have operating leases for corporate offices, sales offices, research and development facilities, storage facilities, and a data center, the terms of which are described in our 2021 10 2028, October 1, 2022 We recorded fixed operating lease expenses of $1.9 million and $2.0 million for the third 2022 2021, first nine 2022 2021, The following table presents the lease balance classifications within the Consolidated Balance Sheets and summarizes their activity during the first nine 2022 Operating lease right-of-use assets (in thousands) Balance as of January 1, 2022 $ 23,818 Right-of-use assets obtained for new lease contracts during the period 639 Amortization of right-of-use assets during the period (4,995 ) Impairment of right-of use asset during the period (recorded in Restructuring charges) (1,149 ) Adjustments for present value and foreign currency effects (941 ) Balance as of October 1, 2022 $ 17,372 Operating lease liabilities (in thousands) Balance as of January 1, 2022 $ 24,944 Lease liabilities incurred for new lease contracts during the period 639 Accretion of lease liabilities 849 Operating cash used by payments on lease liabilities (5,500 ) Adjustments for present value and foreign currency effects (920 ) Balance as of October 1, 2022 20,012 Less: Current portion of operating lease liabilities (included in Accrued expenses) (5,843 ) Long-term operating lease liabilities, net of current portion $ 14,169 Maturities of operating lease liabilities as of October 1, 2022 Fiscal year (in thousands) 2022 (Remaining quarter) 1,305 2023 7,333 2024 5,331 2025 3,608 2026 2,549 Thereafter 2,103 Total lease payments 22,229 Less: amount representing interest (2,217 ) Total lease liabilities $ 20,012 Lease obligations for facilities restructured prior to the adoption of Topic 842 $6.2 October 1, 2022 |
Note 8 - Intangible Assets
Note 8 - Intangible Assets | 9 Months Ended |
Oct. 01, 2022 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | 8 In connection with our acquisition of Mirametrix, Inc. in November 2021, 2021. October 1, 2022 January 1, 2022, $139.2 third We recorded amortization expense related to intangible assets on the Consolidated Statements of Operations as presented in the following table: Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, (In thousands) 2022 2021 2022 2021 Research and development $ 264 $ 223 $ 789 $ 644 Amortization of acquired intangible assets 869 603 2,908 1,809 $ 1,133 $ 826 $ 3,697 $ 2,453 |
Note 9 - Stock-based Compensati
Note 9 - Stock-based Compensation | 9 Months Ended |
Oct. 01, 2022 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | Note 9 tion Total stock-based compensation expense included in our Consolidated Statements of Operations is presented in the following table: Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, (In thousands) 2022 2021 2022 2021 Cost of revenue $ 880 $ 653 $ 2,705 $ 2,144 Research and development 4,925 3,463 14,461 10,199 Selling, general, and administrative 8,153 6,134 24,041 20,281 Total stock-based compensation $ 13,958 $ 10,250 $ 41,207 $ 32,624 Market-Based and Performance-Based Stock Compensation In the first 2022, three 2000 third may 75th 55th zero 25th 25th 75th In the first nine 2022, first 2022 , the market condition for awards granted to certain executives in the first 2019 percentile of their TSR condition, and the third first 2022 , the market condition for awards granted to certain executives in the first 2020 percentile of their TSR condition, and the first first 2022, fourth four two four second 2022, fifth sixth two four two four third 2022 , the market condition for awards granted to certain executives in the third 2019 75 percentile of their TSR condition, and the third For our awards with a market condition or a performance condition, we incurred stock compensation expense of approximately $5.5 million and $4.0 million in the third 2022 2021, first nine 2022 2021, The following table summarizes the activity for our awards with a market condition or performance condition: (Shares in thousands) Total Balance, January 1, 2022 1,246 Granted 183 Effect of vesting multiplier 642 Vested (1,083 ) Balance, October 1, 2022 988 |
Note 10 - Common Stock Repurcha
Note 10 - Common Stock Repurchase Program | 9 Months Ended |
Oct. 01, 2022 | |
Notes to Financial Statements | |
Treasury Stock [Text Block] | Note 10 On November 8, 2021, "2022 2022 December 2022. 2022 third 2022, October 1, 2022 2022 On August 8, 2022, "2023 2023 December 2023. 2023 third 2022, October 1, 2022 2023 Under these plans during the first nine 2022, 2022 2023 third 2022. |
Note 11 - Income Taxes
Note 11 - Income Taxes | 9 Months Ended |
Oct. 01, 2022 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 11 We are subject to federal and state income tax as well as income tax in the foreign jurisdictions in which we operate. For the third 2022 2021 first nine 2022 2021 three nine October 1, 2022 October 2, 2021 three nine October 1, 2022 three nine October 2, 2021 We updated our evaluation of the valuation allowance position in the United States through October 1, 2022 not not Our liability recorded for uncertain tax positions (including penalties and interest) wa s $21.2 million and $21.6 million a October 1, 2022 January 1, 2022 |
Note 12 - Contingencies
Note 12 - Contingencies | 9 Months Ended |
Oct. 01, 2022 | |
Notes to Financial Statements | |
Contingencies Disclosure [Text Block] | 12 Legal Matters On or about December 19, 2018, 2008. January 2019, not From time to time, we are exposed to certain additional asserted and unasserted potential claims. We review the status of each significant matter and assess its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and a range of possible losses can be estimated, we then accrue a liability for the estimated loss. Legal proceedings are subject to uncertainties, and the outcomes are difficult to predict. Because of such uncertainties, accruals are based only on the best information available at the time. As additional information becomes available, we reassess the potential liability related to pending claims and litigation and may |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Oct. 01, 2022 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation and Use of Estimates The accompanying Consolidated Financial Statements are unaudited and have been prepared in accordance with U.S. Generally Accepted Accounting Principles ("U.S. GAAP") and pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). In our opinion, they include all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of results for the interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted as permitted by the SEC's rules and regulations for interim reporting. These Consolidated Financial Statements should be read in conjunction with our audited financial statements and notes thereto included in our Annual Report on Form 10 January 1, 2022 (" 2021 10 The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments affecting the amounts reported in our consolidated condensed financial statements and the accompanying notes. We base our estimates and judgments on historical experience, knowledge of current conditions, and our beliefs of what could occur in the future considering available information. While we believe that our estimates, assumptions, and judgments are reasonable, they are based on information available when made, and because of the uncertainty inherent in these matters, the actual results that we experience may We describe our accounting methods and practices in more detail in our 2021 10 no 2021 10 November 2021 may Certain prior year balances have been reclassified to conform to the current year’s presentation. |
Fiscal Period, Policy [Policy Text Block] | Fiscal Reporting Periods We report based on a 52 53 December 31. 2022 52 December 31, 2022, 2021 52 January 1, 2022. third 2022 third 2021 October 1, 2022 October 2, 2021 13 39 |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations of Risk Potential exposure to concentrations of risk may 90% third 2022 2021 nine October 1, 2022 October 2, 2021, d for 40% and 33% of net accounts receivable at October 1, 2022 and 59% and 28% January 1, 2022 |
Note 2 - Net Income Per Share (
Note 2 - Net Income Per Share (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, (in thousands, except per share data) 2022 2021 2022 2021 Net income $ 46,359 $ 26,739 $ 126,969 $ 67,390 Shares used in basic Net income per share 137,267 136,638 137,397 136,476 Dilutive effect of stock options, RSUs, ESPP shares, and equity awards with a market condition or performance condition 2,668 4,994 3,524 5,687 Shares used in diluted Net income per share 139,935 141,632 140,921 142,163 Basic Net income per share $ 0.34 $ 0.20 $ 0.92 $ 0.49 Diluted Net income per share $ 0.33 $ 0.19 $ 0.90 $ 0.47 Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, (in thousands) 2022 2021 2022 2021 Stock options, RSUs, ESPP shares, and equity awards with a market condition or performance condition excluded as they are antidilutive 604 358 535 182 |
Note 3 - Revenue From Contrac_2
Note 3 - Revenue From Contracts With Customers (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended Nine Months Ended Revenue by Channel October 1, October 2, October 1, October 2, (In thousands) 2022 2021 2022 2021 Product revenue - Distributors $ 154,417 90 % $ 118,227 90 % $ 433,535 89 % $ 328,174 88 % Product revenue - Direct 12,803 7 % 9,190 7 % 38,263 8 % 33,371 9 % Licensing and services 5,289 3 % 4,494 3 % 12,598 3 % 11,987 3 % Total revenue $ 172,509 100 % $ 131,911 100 % $ 484,396 100 % $ 373,532 100 % Revenue by Geographical Market (In thousands) United States $ 22,918 13 % $ 11,022 8 % $ 61,992 13 % $ 31,804 8 % Other Americas 236 — % 9,239 7 % 4,984 1 % 22,126 6 % Americas 23,154 13 % 20,261 15 % 66,976 14 % 53,930 14 % China 75,933 44 % 76,692 58 % 232,099 48 % 208,632 56 % Japan 26,924 16 % 7,877 6 % 62,784 13 % 24,490 6 % Other Asia 20,003 12 % 14,328 11 % 55,449 11 % 50,620 14 % Asia 122,860 72 % 98,897 75 % 350,332 72 % 283,742 76 % Europe 26,495 15 % 12,753 10 % 67,088 14 % 35,860 10 % Total revenue $ 172,509 100 % $ 131,911 100 % $ 484,396 100 % $ 373,532 100 % |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | (In thousands) Contract assets as of Year Ended January 1, 2022 $ 5,672 Revenues recorded during the period 11,499 Transferred to Accounts receivable or collected (10,679 ) Contract assets as of October 1, 2022 $ 6,492 (In thousands) Contract liabilities as of Year Ended January 1, 2022 $ 4,768 Accruals for estimated future stock rotation and scrap returns 4,268 Less: Release of accruals for recognized stock rotation and scrap returns (3,144 ) Contract liabilities as of October 1, 2022 $ 5,892 |
Note 4 - Balance Sheet Compon_2
Note 4 - Balance Sheet Components (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | October 1, January 1, (In thousands) 2022 2022 Accounts receivable $ 100,446 $ 79,859 Less: Allowance for credit losses — — Accounts receivable, net of allowance for credit losses $ 100,446 $ 79,859 |
Schedule of Inventory, Current [Table Text Block] | October 1, January 1, (In thousands) 2022 2022 Work in progress $ 60,798 $ 43,546 Finished goods 33,166 24,048 Total inventories, net $ 93,964 $ 67,594 |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | October 1, January 1, (In thousands) 2022 2022 Liability for non-cancelable contracts $ 10,139 $ 9,930 Current portion of operating lease liabilities 5,843 5,696 Contract liability under ASC 606 5,892 4,768 Taxes payable 3,669 3,058 Other accrued expenses 9,584 2,992 Total accrued expenses $ 35,127 $ 26,444 |
Property, Plant and Equipment [Table Text Block] | October 1, January 1, (In thousands) 2022 2022 United States $ 30,829 $ 26,509 Taiwan 8,706 6,555 Philippines 3,178 2,498 China 1,362 1,643 Other 1,142 889 Total foreign property and equipment, net 14,388 11,585 Total property and equipment, net $ 45,217 $ 38,094 |
Schedule of Capitalized Software Costs [Table Text Block] | (In thousands) Cloud based computing implementation costs as of January 1, 2022 $ 2,380 Costs capitalized 61 Amortization (625 ) Cloud based computing implementation costs as of October 1, 2022 $ 1,816 |
Note 5 - Long-term Debt (Tables
Note 5 - Long-term Debt (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Notes Tables | |
Schedule of Long-Term Debt Instruments [Table Text Block] | October 1, January 1, (In thousands) 2022 2022 Principal amount $ 150,000 $ 158,750 Unamortized original issuance discount and debt costs (1,315 ) (817 ) Less: Current portion of long-term debt — (17,173 ) Long-term debt, net of current portion and unamortized debt issue costs $ 148,685 $ 140,760 |
Interest Income and Interest Expense Disclosure [Table Text Block] | Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, (In thousands) 2022 2021 2022 2021 Contractual interest $ 1,328 $ 568 $ 2,690 $ 1,753 Amortization of original issuance discount and debt costs 76 90 243 274 Total interest expense related to long-term debt $ 1,404 $ 658 $ 2,933 $ 2,027 |
Note 6 - Restructuring (Tables)
Note 6 - Restructuring (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Notes Tables | |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | (In thousands) Severance & Related (1) Lease Termination & Fixed Assets Other (2) Total Accrued Restructuring at January 1, 2022 $ 251 $ 7,130 $ — $ 7,381 Restructuring charges 303 1,562 640 2,505 Costs paid or otherwise settled (154 ) (2,477 ) — (2,631 ) Accrued Restructuring at October 1, 2022 $ 400 $ 6,215 $ 640 $ 7,255 Accrued Restructuring at January 2, 2021 $ 246 $ 8,233 $ 664 $ 9,143 Restructuring charges 15 531 — 546 Costs paid or otherwise settled (165 ) (1,346 ) (664 ) (2,175 ) Accrued Restructuring at October 2, 2021 $ 96 $ 7,418 $ — $ 7,514 |
Note 7 - Leases (Tables)
Note 7 - Leases (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Notes Tables | |
Lessee, Operating Lease Right-of-Use Assets and Liabilities [Table Text Block] | Operating lease right-of-use assets (in thousands) Balance as of January 1, 2022 $ 23,818 Right-of-use assets obtained for new lease contracts during the period 639 Amortization of right-of-use assets during the period (4,995 ) Impairment of right-of use asset during the period (recorded in Restructuring charges) (1,149 ) Adjustments for present value and foreign currency effects (941 ) Balance as of October 1, 2022 $ 17,372 Operating lease liabilities (in thousands) Balance as of January 1, 2022 $ 24,944 Lease liabilities incurred for new lease contracts during the period 639 Accretion of lease liabilities 849 Operating cash used by payments on lease liabilities (5,500 ) Adjustments for present value and foreign currency effects (920 ) Balance as of October 1, 2022 20,012 Less: Current portion of operating lease liabilities (included in Accrued expenses) (5,843 ) Long-term operating lease liabilities, net of current portion $ 14,169 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Fiscal year (in thousands) 2022 (Remaining quarter) 1,305 2023 7,333 2024 5,331 2025 3,608 2026 2,549 Thereafter 2,103 Total lease payments 22,229 Less: amount representing interest (2,217 ) Total lease liabilities $ 20,012 |
Note 8 - Intangible Assets (Tab
Note 8 - Intangible Assets (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Notes Tables | |
Finite-Lived Intangible Assets Amortization Expense [Table Text Block] | Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, (In thousands) 2022 2021 2022 2021 Research and development $ 264 $ 223 $ 789 $ 644 Amortization of acquired intangible assets 869 603 2,908 1,809 $ 1,133 $ 826 $ 3,697 $ 2,453 |
Note 9 - Stock-based Compensa_2
Note 9 - Stock-based Compensation (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Notes Tables | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block] | Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, (In thousands) 2022 2021 2022 2021 Cost of revenue $ 880 $ 653 $ 2,705 $ 2,144 Research and development 4,925 3,463 14,461 10,199 Selling, general, and administrative 8,153 6,134 24,041 20,281 Total stock-based compensation $ 13,958 $ 10,250 $ 41,207 $ 32,624 |
Share-Based Payment Arrangement, Performance Shares, Outstanding Activity [Table Text Block] | (Shares in thousands) Total Balance, January 1, 2022 1,246 Granted 183 Effect of vesting multiplier 642 Vested (1,083 ) Balance, October 1, 2022 988 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation (Details Textual) - Sell-through Distributors Concentration Risk [Member] | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Oct. 01, 2022 | Oct. 02, 2021 | Jul. 02, 2022 | Oct. 01, 2022 | Oct. 01, 2021 | Jan. 01, 2022 | |
Accounts Receivable [Member] | Distributors [Member] | ||||||
Concentration Risk, Percentage | 90% | 90% | 89% | 88% | ||
Accounts Receivable [Member] | Large Distributor One [Member] | ||||||
Concentration Risk, Percentage | 40% | 59% | ||||
Accounts Receivable [Member] | Large Distributor Two [Member] | ||||||
Concentration Risk, Percentage | 33% | 28% | ||||
Revenue Benchmark [Member] | ||||||
Number of Distributors | 2 |
Note 2 - Net Income Per Share -
Note 2 - Net Income Per Share - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Oct. 01, 2022 | Jul. 02, 2022 | Oct. 02, 2021 | Jul. 03, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
Net income | $ 46,359 | $ 46,359 | $ 26,739 | $ 26,739 | $ 126,969 | $ 67,390 |
Shares used in basic Net income per share (in shares) | 137,267 | 137,267 | 136,638 | 136,638 | 137,397 | 136,476 |
Dilutive effect of stock options, RSUs, ESPP shares, and equity awards with a market condition or performance condition (in shares) | 2,668 | 4,994 | 3,524 | 5,687 | ||
Shares used in diluted Net income per share (in shares) | 139,935 | 139,935 | 141,632 | 141,632 | 140,921 | 142,163 |
Basic (in dollars per share) | $ 0.34 | $ 0.34 | $ 0.20 | $ 0.20 | $ 0.92 | $ 0.49 |
Diluted (in dollars per share) | $ 0.33 | $ 0.33 | $ 0.19 | $ 0.19 | $ 0.90 | $ 0.47 |
Stock options, RSUs, ESPP shares, and equity awards with a market condition or performance condition excluded as they are antidilutive (in shares) | 604 | 358 | 535 | 182 |
Note 3 - Revenue From Contrac_3
Note 3 - Revenue From Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Oct. 01, 2022 | Jul. 02, 2022 | Oct. 02, 2021 | Jul. 03, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
Revenue | $ 172,509 | $ 172,509 | $ 131,911 | $ 131,911 | $ 484,396 | $ 373,532 |
Percentage of revenue | 100% | 100% | 100% | 100% | ||
UNITED STATES | ||||||
Revenue | $ 22,918 | $ 11,022 | $ 61,992 | $ 31,804 | ||
Percentage of revenue | 13% | 8% | 13% | 8% | ||
Other Americas [Member] | ||||||
Revenue | $ 236 | $ 9,239 | $ 4,984 | $ 22,126 | ||
Percentage of revenue | 0% | 7% | 1% | 6% | ||
Americas [Member] | ||||||
Revenue | $ 23,154 | $ 20,261 | $ 66,976 | $ 53,930 | ||
Percentage of revenue | 13% | 15% | 14% | 14% | ||
CHINA | ||||||
Revenue | $ 75,933 | $ 76,692 | $ 232,099 | $ 208,632 | ||
Percentage of revenue | 44% | 58% | 48% | 56% | ||
JAPAN | ||||||
Revenue | $ 26,924 | $ 7,877 | $ 62,784 | $ 24,490 | ||
Percentage of revenue | 16% | 6% | 13% | 6% | ||
Other Asia [Member] | ||||||
Revenue | $ 20,003 | $ 14,328 | $ 55,449 | $ 50,620 | ||
Percentage of revenue | 12% | 11% | 11% | 14% | ||
Asia [Member] | ||||||
Revenue | $ 122,860 | $ 98,897 | $ 350,332 | $ 283,742 | ||
Percentage of revenue | 72% | 75% | 72% | 76% | ||
Europe [Member] | ||||||
Revenue | $ 26,495 | $ 12,753 | $ 67,088 | $ 35,860 | ||
Percentage of revenue | 15% | 10% | 14% | 10% | ||
Product [Member] | Sales Channel, Through Intermediary [Member] | ||||||
Revenue | $ 154,417 | $ 118,227 | $ 433,535 | $ 328,174 | ||
Percentage of revenue | 90% | 90% | 89% | 88% | ||
Product [Member] | Sales Channel, Directly to Consumer [Member] | ||||||
Revenue | $ 12,803 | $ 9,190 | $ 38,263 | $ 33,371 | ||
Percentage of revenue | 7% | 7% | 8% | 9% | ||
License and Service [Member] | ||||||
Revenue | $ 5,289 | $ 4,494 | $ 12,598 | $ 11,987 | ||
Percentage of revenue | 3% | 3% | 3% | 3% |
Note 3 - Revenue From Contrac_4
Note 3 - Revenue From Contracts With Customers - Contract Balance (Details) $ in Thousands | 9 Months Ended |
Oct. 01, 2022 USD ($) | |
Contract assets, balance | $ 5,672 |
Revenues recorded during the period | 11,499 |
Transferred to Accounts receivable or collected | (10,679) |
Contract assets as of October 1, 2022 | 6,492 |
Contract liabilities, balance | 4,768 |
Accruals for estimated future stock rotation and scrap returns | 4,268 |
Less: Release of accruals for recognized stock rotation and scrap returns | (3,144) |
Contract liabilities as of October 1, 2022 | $ 5,892 |
Note 4 - Balance Sheet Compon_3
Note 4 - Balance Sheet Components - Accounts Receivable (Details) - USD ($) $ in Thousands | Oct. 01, 2022 | Jan. 01, 2022 |
Accounts receivable | $ 100,446 | $ 79,859 |
Less: Allowance for credit losses | 0 | 0 |
Accounts receivable, net of allowance for credit losses | $ 100,446 | $ 79,859 |
Note 4 - Balance Sheet Compon_4
Note 4 - Balance Sheet Components - Inventories (Details) - USD ($) $ in Thousands | Oct. 01, 2022 | Jan. 01, 2022 |
Work in progress | $ 60,798 | $ 43,546 |
Finished goods | 33,166 | 24,048 |
Total inventories, net | $ 93,964 | $ 67,594 |
Note 4 - Balance Sheet Compon_5
Note 4 - Balance Sheet Components - Accrued Expenses (Details) - USD ($) $ in Thousands | Oct. 01, 2022 | Jan. 01, 2022 |
Liability for non-cancelable contracts | $ 10,139 | $ 9,930 |
Contract liability under ASC 606 | 5,892 | 4,768 |
Taxes payable | 3,669 | 3,058 |
Other accrued expenses | 9,584 | 2,992 |
Total accrued expenses | 35,127 | 26,444 |
Accrued Liabilities [Member] | ||
Current portion of operating lease liabilities | $ 5,843 | $ 5,696 |
Note 4 - Balance Sheet Compon_6
Note 4 - Balance Sheet Components - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Oct. 01, 2022 | Jan. 01, 2022 |
Property, Plant and Equipment, Net | $ 45,217 | $ 38,094 |
UNITED STATES | ||
Property, Plant and Equipment, Net | 30,829 | 26,509 |
TAIWAN | ||
Property, Plant and Equipment, Net | 8,706 | 6,555 |
PHILIPPINES | ||
Property, Plant and Equipment, Net | 3,178 | 2,498 |
CHINA | ||
Property, Plant and Equipment, Net | 1,362 | 1,643 |
Other [Member] | ||
Property, Plant and Equipment, Net | 1,142 | 889 |
Foreign Countries [Member] | ||
Property, Plant and Equipment, Net | $ 14,388 | $ 11,585 |
Note 4 - Balance Sheet Compon_7
Note 4 - Balance Sheet Components - Capitalized Software Costs (Details) $ in Thousands | 9 Months Ended |
Oct. 01, 2022 USD ($) | |
Cloud based computing implementation costs as of January 1, 2022 | $ 2,380 |
Costs capitalized | 61 |
Amortization | (625) |
Cloud based computing implementation costs as of October 1, 2022 | $ 1,816 |
Note 5 - Long-term Debt (Detail
Note 5 - Long-term Debt (Details Textual) - USD ($) $ in Millions | 6 Months Ended | ||
Sep. 01, 2022 | Jul. 02, 2022 | Oct. 01, 2022 | |
The 2022 Credit Agreement [Member[ | Other (Expense) Income, Net [Member] | |||
Amortization of Debt Issuance Costs and Discounts, Total | $ 0.7 | ||
The 2022 Credit Agreement [Member[ | Revolving Credit Facility [Member] | |||
Debt Instrument, Term (Year) | 5 years | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 350 | ||
Proceeds from Lines of Credit, Total | 150 | ||
Debt Instrument, Fee Amount | $ 1.4 | ||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.20% | ||
Debt Issuance Costs, Gross | $ 0.9 | ||
Line of Credit Facility, Interest Rate at Period End | 3.94% | ||
The 2022 Credit Agreement [Member[ | Revolving Credit Facility [Member] | Minimum [Member] | Base Rate [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | ||
The 2022 Credit Agreement [Member[ | Revolving Credit Facility [Member] | Minimum [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | ||
The 2022 Credit Agreement [Member[ | Revolving Credit Facility [Member] | Maximum [Member] | Base Rate [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 1% | ||
The 2022 Credit Agreement [Member[ | Revolving Credit Facility [Member] | Maximum [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 2% | ||
The 2022 Credit Agreement [Member[ | Revolving Credit Facility [Member] | Secured Term Loan [Member] | |||
Debt Instrument, Periodic Payment, Total | $ 8.8 | ||
Credit Agreement, May 17, 2019 [Member] | Term Loan [Member] | |||
Repayments of Fees and Accrued Interest | $ 1.9 | ||
Extinguishment of Debt and Accrued Interest, Amount | $ 150.5 |
Note 5 - Long-term Debt - Fair
Note 5 - Long-term Debt - Fair Value of Long-term Debt (Details) - USD ($) $ in Thousands | Oct. 01, 2022 | Jan. 01, 2022 |
Principal amount | $ 150,000 | $ 158,750 |
Unamortized original issuance discount and debt costs | (1,315) | (817) |
Less: Current portion of long-term debt | 0 | (17,173) |
Long-term debt, net of current portion and unamortized debt issue costs | $ 148,685 | $ 140,760 |
Note 5 - Long-term Debt - Inter
Note 5 - Long-term Debt - Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
Contractual interest | $ 1,328 | $ 568 | $ 2,690 | $ 1,753 |
Amortization of original issuance discount and debt costs | 76 | 90 | 243 | 274 |
Total interest expense related to long-term debt | $ 1,404 | $ 658 | $ 2,933 | $ 2,027 |
Note 6 - Restructuring (Details
Note 6 - Restructuring (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Oct. 02, 2022 | Oct. 01, 2022 | Jul. 02, 2022 | Oct. 02, 2021 | Jul. 03, 2021 | Oct. 02, 2022 | Oct. 01, 2022 | Oct. 02, 2021 | |
Restructuring Charges, Total | $ 2,315 | $ 166 | $ 2,505 | $ 546 | ||||
Operating Lease, Impairment Loss | 1,149 | 0 | ||||||
Q2 2019 Sales Plan [Member] | ||||||||
Restructuring and Related Cost, Incurred Cost | $ 1,000 | 1,000 | ||||||
Restructuring Charges, Total | $ 0 | $ 0 | ||||||
Restructuring and Related Cost, Cost Incurred to Date | 3,100 | 3,100 | ||||||
June 2017 Plan [Member] | ||||||||
Restructuring and Related Cost, Incurred Cost | 1,300 | $ 100 | $ 1,600 | 500 | ||||
Restructuring and Related Cost, Cost Incurred to Date | $ 23,200 | $ 23,200 | ||||||
June 2017 Plan [Member] | San Jose [Member] | ||||||||
Operating Lease, Impairment Loss | $ 1,100 |
Note 6 - Restructuring - Activi
Note 6 - Restructuring - Activity Related to Restructuring Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jul. 02, 2022 | Jul. 03, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | ||
Restructuring charges | $ 2,315 | $ 166 | $ 2,505 | $ 546 | |
Employee Severance [Member] | |||||
Accrued Restructuring | [1] | 251 | 246 | ||
Restructuring charges | [1] | 303 | 15 | ||
Costs paid or otherwise settled | [1] | (154) | (165) | ||
Accrued Restructuring | [1] | 400 | 96 | ||
Lease Termination and Fixed Assets [Member] | |||||
Accrued Restructuring | 7,130 | 8,233 | |||
Restructuring charges | 1,562 | 531 | |||
Costs paid or otherwise settled | (2,477) | (1,346) | |||
Accrued Restructuring | 6,215 | 7,418 | |||
Software Contracts and Engineering Tools [Member] | |||||
Accrued Restructuring | [2] | 0 | 664 | ||
Restructuring charges | [2] | 640 | 0 | ||
Costs paid or otherwise settled | [2] | 0 | (664) | ||
Accrued Restructuring | [2] | 640 | 0 | ||
Other Restructuring [Member] | |||||
Accrued Restructuring | 7,381 | 9,143 | |||
Restructuring charges | 2,505 | 546 | |||
Costs paid or otherwise settled | (2,631) | (2,175) | |||
Accrued Restructuring | $ 7,255 | $ 7,514 | |||
[1]Includes employee relocation and outplacement costs.[2]Includes termination fees on the cancellation of certain contracts under previous restructuring plans |
Note 7 - Leases (Details Textua
Note 7 - Leases (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2022 | Oct. 01, 2021 | Oct. 01, 2022 | Oct. 01, 2021 | |
Operating Lease, Weighted Average Remaining Lease Term (Year) | 3 years 7 months 6 days | 3 years 7 months 6 days | ||
Operating Lease, Weighted Average Discount Rate, Percent | 5.40% | 5.40% | ||
Operating Lease, Cost | $ 1.9 | $ 2 | $ 5.8 | $ 5.9 |
Operating Lease Liability for Previously Restructured Facilities | $ 6.2 | $ 6.2 |
Note 7 - Leases - Lease Balance
Note 7 - Leases - Lease Balance Classifications Within the Consolidated Balance Sheets and Lease Activity (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Oct. 03, 2022 | Oct. 01, 2022 | Oct. 02, 2021 | Jan. 01, 2022 | |
Balance | $ 23,818 | $ 23,818 | ||
Right-of-use assets obtained for new lease contracts during the period | 639 | |||
Amortization of right-of-use assets during the period | (4,995) | $ (4,926) | ||
Impairment of right-of use asset during the period (recorded in Restructuring charges) | (1,149) | 0 | ||
Adjustments for present value and foreign currency effects | (941) | |||
Balance | 17,372 | |||
Balance | 24,944 | 24,944 | ||
Lease liabilities incurred for new lease contracts during the period | 639 | |||
Accretion of lease liabilities | 849 | |||
Operating cash used by payments on lease liabilities | (5,500) | (5,500) | $ (5,786) | |
Adjustments for present value and foreign currency effects | (920) | |||
Balance | 20,012 | 20,012 | ||
Long-term operating lease liabilities, net of current portion | 14,169 | $ 14,169 | $ 19,248 | |
Accounts Payable and Accrued Liabilities [Member] | ||||
Less: Current portion of operating lease liabilities (included in Accrued expenses) | $ (5,843) |
Note 7 - Leases - Maturities of
Note 7 - Leases - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Oct. 03, 2022 | Oct. 01, 2022 | Jan. 01, 2022 |
2022 (Remaining quarter) | $ 1,305 | ||
2023 | 7,333 | ||
2024 | 5,331 | ||
2025 | 3,608 | ||
2026 | 2,549 | ||
Thereafter | 2,103 | ||
Total lease payments | 22,229 | ||
Less: amount representing interest | (2,217) | ||
Total lease liabilities | $ 20,012 | $ 20,012 | $ 24,944 |
Note 8 - Intangible Assets (Det
Note 8 - Intangible Assets (Details Textual) - USD ($) $ in Millions | Oct. 01, 2022 | Jan. 01, 2022 |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 139.2 | $ 135.5 |
Note 8 - Intangible Assets - Am
Note 8 - Intangible Assets - Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
Amortization of intangible assets | $ 1,133 | $ 826 | $ 3,697 | $ 2,453 |
Research and Development Expense [Member] | ||||
Amortization of intangible assets | 264 | 223 | 789 | 644 |
Amortization of Acquired Intangible Assets [Member] | ||||
Amortization of intangible assets | $ 869 | $ 603 | $ 2,908 | $ 1,809 |
Note 9 - Stock-based Compensa_3
Note 9 - Stock-based Compensation (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
Share-Based Payment Arrangement, Expense | $ 13,958 | $ 10,250 | $ 41,207 | $ 32,624 | ||
Restricted Stock Units (RSUs) [Member] | Chief Executive Officer [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 3 years | |||||
Restricted Stock Units (RSUs) [Member] | Executive Officer [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage Of Market Condition Achieved | 75% | |||||
Share-Based Payment Arrangement, Expense | $ 5,500 | $ 4,000 | $ 18,400 | $ 15,300 | ||
Restricted Stock Units (RSUs) [Member] | Executive Officer [Member] | Share-Based Payment Arrangement, Tranche One [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage Of Market Condition Achieved | 75% | |||||
Restricted Stock Units (RSUs) [Member] | Executive Officer [Member] | Share-Based Payment Arrangement, Tranche Two [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage, Based on Market Conditions | 100% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage Of Market Condition Achieved | 55% | |||||
Restricted Stock Units (RSUs) [Member] | Executive Officer [Member] | Share-Based Payment Arrangement, Tranche Three [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage, Based on Market Conditions | 200% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage Of Market Condition Achieved | 25% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0% | |||||
Restricted Stock Units (RSUs) [Member] | Executive Officer [Member] | Minimum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage Of Market Condition Achieved | 200% | |||||
Restricted Stock Units (RSUs) [Member] | Executive Officer [Member] | Minimum [Member] | TSR Relative To PHLX Semiconductor Sector Index, 75th Percentile [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage, Based on Market Conditions | 250% | |||||
Restricted Stock Units (RSUs) [Member] | Executive Officer [Member] | Minimum [Member] | Share-Based Payment Arrangement, Tranche Three [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage Of Market Condition Achieved | 25% | |||||
Restricted Stock Units (RSUs) [Member] | Executive Officer [Member] | Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage Of Market Condition Achieved | 250% | |||||
Restricted Stock Units (RSUs) [Member] | Executive Officer [Member] | Maximum [Member] | TSR Relative To PHLX Semiconductor Sector Index, 75th Percentile [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage, Based on Market Conditions | 200% | |||||
Restricted Stock Units (RSUs) [Member] | Executive Officer [Member] | Maximum [Member] | Share-Based Payment Arrangement, Tranche One [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage Of Market Condition Achieved | 250% | |||||
Restricted Stock Units (RSUs) [Member] | Executive Officer [Member] | Maximum [Member] | Share-Based Payment Arrangement, Tranche Three [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage Of Market Condition Achieved | 75% | |||||
Performance Shares Granted in 2018 [Member] | Executive Officer [Member] | Minimum [Member] | Share-Based Payment Arrangement, Tranche One [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage, Based on Market Conditions | 200% | |||||
Performance Shares [Member] | Share-Based Payment Arrangement, Tranche Four [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 40% | |||||
Performance Shares [Member] | Share-Based Payment Arrangement, Tranche Five [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 40% | |||||
Performance Shares [Member] | Share-Based Payment Arrangement, Tranche Six [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 70% |
Note 9 - Stock-based Compensa_4
Note 9 - Stock-based Compensation - Stock-based Compensation (Details) - USD ($) $ in Thousands | 6 Months Ended | 9 Months Ended | ||
Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
Total stock-based compensation | $ 13,958 | $ 10,250 | $ 41,207 | $ 32,624 |
Cost of Sales [Member] | ||||
Total stock-based compensation | 880 | 653 | 2,705 | 2,144 |
Research and Development Expense [Member] | ||||
Total stock-based compensation | 4,925 | 3,463 | 14,461 | 10,199 |
Selling, General and Administrative Expenses [Member] | ||||
Total stock-based compensation | $ 8,153 | $ 6,134 | $ 24,041 | $ 20,281 |
Note 9 - Stock-based Compensa_5
Note 9 - Stock-based Compensation - Share Based Compensation Performance Shares Award Outstanding (Details) - Performance Shares [Member] shares in Thousands | 9 Months Ended |
Oct. 01, 2022 shares | |
Balance, Shares (in shares) | 1,246 |
Granted, Shares (in shares) | 183 |
Effect of vesting multiplier, Shares (in shares) | 642 |
Vested, Shares (in shares) | (1,083) |
Balance, Shares (in shares) | 988 |
Note 10 - Common Stock Repurc_2
Note 10 - Common Stock Repurchase Program (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | Aug. 08, 2022 | Nov. 08, 2021 | |
Stock Repurchased and Retired During Period, Value | $ 39,976 | $ 15,013 | $ 90,137 | $ 55,126 | ||
Repurchase Program 2022 [Member] | ||||||
Stock Repurchase Program, Authorized Amount | $ 100,000 | |||||
Stock Repurchased and Retired During Period, Shares (in shares) | 680,098 | |||||
Stock Repurchased and Retired During Period, Value | $ 39,700 | |||||
Treasury Stock Acquired, Average Cost Per Share (in dollars per share) | $ 58.40 | |||||
Repurchase Program 2023 [Member] | ||||||
Stock Repurchase Program, Authorized Amount | $ 150,000 | |||||
Stock Repurchased and Retired During Period, Shares (in shares) | 4,829 | |||||
Stock Repurchased and Retired During Period, Value | $ 300 | |||||
Treasury Stock Acquired, Average Cost Per Share (in dollars per share) | $ 54.08 | |||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 149,700 | $ 149,700 | ||||
Share Repurchase Program 2022 and 2023 [Member] | ||||||
Stock Repurchased and Retired During Period, Shares (in shares) | 1,663,282 | |||||
Stock Repurchased and Retired During Period, Value | $ 90,100 | |||||
Treasury Stock Acquired, Average Cost Per Share (in dollars per share) | $ 54.19 |
Note 11 - Income Taxes (Details
Note 11 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Oct. 01, 2022 | Jul. 02, 2022 | Oct. 02, 2021 | Jul. 03, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | Jan. 01, 2022 | |
Income Tax Expense (Benefit), Total | $ 400 | $ 356 | $ (500) | $ (472) | $ 2,431 | $ 1,125 | |
Other Noncurrent Liabilities [Member] | |||||||
Liability for Uncertainty in Income Taxes, Noncurrent | 21,200 | $ 21,200 | |||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total | $ 21,600 | ||||||
Domestic Tax Authority [Member] | |||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21% | ||||||
Foreign Tax Authority [Member] | |||||||
Deferred Tax Assets, Valuation Allowance, Total | $ 0 | $ 0 |
Note 12 - Contingencies (Detail
Note 12 - Contingencies (Details Textual) - Action in Oregon in Connection with Sale of Certain Products [Member] $ in Millions | 9 Months Ended |
Oct. 01, 2022 USD ($) | |
Minimum [Member] | |
Loss Contingency, Damages Sought, Value | $ 155 |
Maximum [Member] | |
Loss Contingency, Damages Sought, Value | $ 268 |