Mattson Technology (MTSN) 10-Q 31 Jul 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 28, 2015	Jul. 24, 2015
Document and Entity Information
Entity Registrant Name	MATTSON TECHNOLOGY INC
Entity Central Index Key	928,421
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 28, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		75,106,957

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 28, 2015	Jun. 29, 2014	Jun. 28, 2015	Jun. 29, 2014
Income Statement [Abstract]
Net revenue	$ 43,334	$ 42,029	$ 101,588	$ 85,227
Cost of goods sold	27,315	28,733	64,175	57,285
Gross margin	16,019	13,296	37,413	27,942
Operating expenses:
Research, development and engineering	5,184	4,446	10,434	8,970
Selling, general and administrative	8,158	6,690	16,999	14,111
Restructuring and other charges	0	111	0	111
Total operating expenses	13,342	11,247	27,433	23,192
Income from operations	2,677	2,049	9,980	4,750
Interest income (expense), net	(33)	(21)	(67)	(147)
Other income (expense), net	15	(142)	(428)	(63)
Income before income taxes	2,659	1,886	9,485	4,540
Provision for (benefit from) income taxes	78	(30)	599	159
Net income	$ 2,581	$ 1,916	$ 8,886	$ 4,381
Net income per share:
Basic (in usd per share)	$ 0.03	$ 0.03	$ 0.12	$ 0.06
Diluted (in usd per share)	$ 0.03	$ 0.03	$ 0.12	$ 0.06
Shares used in computing net income per share:
Basic (in shares)	74,920	73,532	74,611	69,943
Diluted (in shares)	77,019	74,679	76,973	71,405

Condensed Consolidated Stateme3

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 28, 2015	Jun. 29, 2014	Jun. 28, 2015	Jun. 29, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 2,581	$ 1,916	$ 8,886	$ 4,381
Other comprehensive income (loss)
Changes in foreign currency translation adjustments	492	133	(1,042)	(483)
Other comprehensive income (loss)	492	133	(1,042)	(483)
Comprehensive income	$ 3,073	$ 2,049	$ 7,844	$ 3,898

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 28, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 30,863	$ 22,760
Accounts receivable, net of allowance for doubtful accounts of $683 as of June 28, 2015 and $669 as of December 31, 2014	26,294	33,578
Advance billings	3,329	4,653
Inventories	42,768	40,579
Prepaid expenses and other current assets	7,515	9,767
Total current assets	110,769	111,337
Property and equipment, net	9,587	7,534
Restricted cash	1,979	1,993
Other assets	530	623
Total assets	122,865	121,487
Current liabilities:
Accounts payable	13,128	22,434
Accrued compensation and benefits	7,017	4,601
Deferred revenues, current	7,371	9,110
Other current liabilities	6,739	6,630
Total current liabilities	34,255	42,775
Deferred revenues, non-current	755	1,160
Other liabilities	2,504	2,442
Total liabilities	$ 37,514	$ 46,377
Commitments and contingencies (Note 6)
Stockholders' equity:
Preferred stock, 2,000 shares authorized; none issued and outstanding	$ 0	$ 0
Common stock, par value $0.001, 120,000 shares authorized; 79,376 shares issued and 75,021 shares outstanding as of June 28, 2015; 78,267 shares issued and 74,009 shares outstanding as of December 31, 2014	79	78
Additional paid-in capital	690,685	687,871
Accumulated other comprehensive income	17,129	18,171
Treasury stock, 4,355 shares as of June 28, 2015 and 4,258 shares as of December 31, 2014	(38,501)	(38,083)
Accumulated deficit	(584,041)	(592,927)
Total stockholders' equity	85,351	75,110
Total liabilities and stockholders' equity	$ 122,865	$ 121,487

Condensed Consolidated Balance5

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 28, 2015	Dec. 31, 2014
Current assets:
Accounts receivable allowance for doubtful accounts	$ 683	$ 669
Stockholders' equity:
Preferred stock, shares authorized (in shares)	2,000,000	2,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value per share (in usd per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	120,000,000	120,000,000
Common stock, shares issued (in shares)	79,376,000	78,267,000
Common stock, shares outstanding (in shares)	75,021,000	74,009,000
Treasury stock, shares (in shares)	4,355,000	4,258,000

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 28, 2015	Jun. 29, 2014
Cash flows from operating activities:
Net income	$ 8,886	$ 4,381
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	1,205	1,378
Stock-based compensation	1,094	685
Other non-cash items	195	93
Changes in assets and liabilities:
Accounts receivable	7,225	1,768
Advance billings	1,324	(493)
Inventories	(5,088)	(9,279)
Prepaid expenses and other assets	1,822	(994)
Accounts payable	(9,141)	(6,752)
Accrued compensation and benefits and other current liabilities	2,331	1,582
Deferred revenues	(2,144)	(3,165)
Other liabilities	263	(88)
Net cash provided by (used in) operating activities	7,972	(10,884)
Cash flows from investing activities:
Purchases of property and equipment	(1,050)	(452)
Other	0	1
Net cash used in investing activities	(1,050)	(451)
Cash flows from financing activities:
Repayment of revolving credit facility	0	(14,000)
Proceeds from issuance of common stock, net	1,302	31,921
Net cash provided by financing activities	1,302	17,921
Effect of exchange rate changes on cash and cash equivalents	(121)	(497)
Net increase in cash and cash equivalents	8,103	6,089
Cash and cash equivalents, beginning of period	22,760	14,578
Cash and cash equivalents, end of period	30,863	20,667
Supplemental disclosure of non-cash transactions:
Transfer of inventories into property and equipment	$ 1,988	$ 0

BASIS OF PRESENTATION AND SIGNI

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 28, 2015
Accounting Policies [Abstract]
Basis of Presentation and Significant Accounting Policies	BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Mattson Technology, Inc. (referred to in this Quarterly Report on Form 10-Q as "Mattson," "we," "us," or "our") was incorporated in California in 1988 and reincorporated in Delaware in 1997. We design, manufacture, market and globally support semiconductor wafer processing equipment used in the fabrication of integrated circuits. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the instructions to Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by such accounting principles for complete financial statements. In the opinion of management, all adjustments (which include normal recurring adjustments) considered necessary to present fairly each of the statement of financial position as of June 28, 2015 , the statements of operations for the three and six months ended June 28, 2015 and June 29, 2014 , statements of comprehensive income for the three and six months ended June 28, 2015 and June 29, 2014 , and the statements of cash flows for the six months ended June 28, 2015 and June 29, 2014 , as applicable, have been made. The condensed consolidated balance sheet as of December 31, 2014 has been derived from our audited financial statements as of such date, but does not include all disclosures required by U.S. GAAP. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements for the year ended December 31, 2014 , which are included in the Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 12, 2015 . The condensed consolidated financial statements include the accounts of Mattson Technology, Inc. and our wholly-owned subsidiaries. All inter-company balances and transactions have been eliminated. The results of operations for the three and six months ended June 28, 2015 are not necessarily indicative of results that may be expected for the entire year ending December 31, 2015 . Fiscal Year Our fiscal year ends on December 31. We close our first fiscal quarter on the Sunday closest to March 31. Our second and third fiscal quarters are each 13 weeks long and our fourth quarter closes on December 31. Use of Estimates The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reported periods. We evaluate our estimates on an ongoing basis, including those related to the useful lives and fair value of long-lived assets, estimates used to determine facility lease loss liabilities, measurement of warranty obligations, valuation allowances for deferred tax assets, the fair value of stock-based compensation, estimates for allowance for doubtful accounts, and valuation of excess and obsolete inventories. Our estimates and assumptions can be subjective and complex and, consequently, actual results could differ materially from those estimates. Reclassifications For presentation purposes, certain prior period amounts have been reclassified to conform to the reporting in the current period financial statements. These reclassifications do not affect our net income, cash flows or stockholders' equity. Recent Developments On July 28, 2005, our Board of Directors declared a dividend distribution of one preferred stock purchase right (collectively, the “Rights”) for each outstanding share of common stock, par value $0.001 per share, to stockholders of record at the close of business on August 15, 2005. The description and terms of the Rights are set forth in a Rights Agreement between us and Computershare Trust Company, N.A. (the “Rights Agent”), as successor to Mellon Investor Services, LLC, dated July 28, 2005 (as amended from time to time, the “Rights Agreement”). On May 5, 2015, we entered into Amendment No. 3 to Rights Agreement (the “Amendment”) to change the “Final Expiration Date” of the Rights Agreement from July 27, 2015 to May 5, 2015. As a result of the Amendment, effective as of the close of business on May 5, 2015, the Rights expired and were no longer outstanding and the Rights Agreement terminated by its terms. Recent Accounting Pronouncements In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-03, Simplifying the Presentation of Debt Issuance Costs. Debt issuance costs are specified incremental costs, other than those paid to the lender, that are directly attributable to issuing a debt instrument (i.e., third party costs). Prior to the adoption of this standard, debt issuance costs were required to be presented in the balance sheet as a deferred charge (i.e., an asset). This presentation differed from the presentation for a debt discount, which is a direct adjustment to the carrying value of the debt (i.e., a contra liability). This new standard requires that all costs incurred to issue debt be presented in the balance sheet as a direct deduction from the carrying value of the debt. This new standard does not affect the recognition and measurement of debt issuance costs. ASU 2015-03 will be effective for us in the first quarter of fiscal 2016, with early adoption permitted. We do not expect the adoption of this accounting standard to have a material impact on our financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. The FASB issued ASU 2014-09 to clarify the principles for recognizing revenue and to develop a common revenue standard for GAAP and International Financial Reporting Standards. The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes the most current revenue recognition guidance. In July 2015, the FASB delayed the effective date of this standard by one year. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2017, which is effective for us as of the first quarter of our fiscal year ending December 31, 2018. We are currently evaluating the impact that the implementation of this standard will have on our financial statements. There were no other recent accounting pronouncements or changes in accounting pronouncements during the six months ended June 28, 2015 compared to the recent accounting pronouncements described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014 that are of significance or potential significance to us.

BALANCE SHEET DETAILS

BALANCE SHEET DETAILS	6 Months Ended
	Jun. 28, 2015
Balance Sheet Related Disclosures [Abstract]
Balance Sheet Details	BALANCE SHEET DETAILS We had restricted cash of $2.0 million for each of the periods ended June 28, 2015 and December 31, 2014 , respectively, which is primarily related to secured standby letters of credit for our long-term leases. Accordingly, such amounts are classified as long term in the accompanying condensed consolidated balance sheets. See Note 6. Commitments and Contingencies . Components of inventories as of June 28, 2015 and December 31, 2014 are shown below (in thousands): June 28, December 31, Inventories: Purchased parts and raw materials $ 31,099 $ 28,143 Work-in-process 9,567 10,832 Finished goods 2,102 1,604 $ 42,768 $ 40,579 Components of prepaid expenses and other current assets as of June 28, 2015 and December 31, 2014 are shown below (in thousands): June 28, December 31, Prepaid expenses and other current assets: Value-added tax $ 3,059 $ 4,184 Other current assets 4,456 5,583 $ 7,515 $ 9,767 Components of property and equipment as of June 28, 2015 and December 31, 2014 are shown below (in thousands): June 28, December 31, Property and equipment, net: Machinery and equipment $ 41,866 $ 40,777 Furniture and fixtures 8,634 9,079 Leasehold improvements 16,471 17,646 66,971 67,502 Less: accumulated depreciation (57,384 ) (59,968 ) $ 9,587 $ 7,534 Components of other current liabilities as of June 28, 2015 and December 31, 2014 are shown below (in thousands): June 28, December 31, Other current liabilities: Warranty $ 3,466 $ 2,803 Value-added tax 1,035 1,547 Accrued restructuring charge, current 112 366 Other 2,126 1,914 $ 6,739 $ 6,630

FAIR VALUE MEASUREMENT

FAIR VALUE MEASUREMENT	6 Months Ended
	Jun. 28, 2015
Fair Value Disclosures [Abstract]
Fair Value Measurement	FAIR VALUE MEASUREMENT We measure certain assets and liabilities at fair value, which is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. The authoritative guidance on fair value measurements establishes a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1. Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2. Include other inputs that are directly or indirectly observable in the marketplace. Level 3 . Unobservable inputs that are supported by little or no market activities. Our money market funds are classified within Level 1 of the fair value hierarchy, as these instruments are valued using quoted market prices. Specifically, we value our investments in money market securities on quoted market prices in active markets. As of June 28, 2015 and December 31, 2014 , we had no assets or liabilities classified within Level 2 or Level 3 and there were no transfers of instruments between Level 1, Level 2 and Level 3 regarding fair value measurement. Cash and cash equivalents and restricted cash are carried at fair value. Accounts receivable and accounts payable are valued at their carrying amounts, which approximate fair value due to their short-term nature. Assets and Liabilities Measured at Fair Value on a Recurring Basis Assets and liabilities measured at fair value on a recurring basis are shown in the table below by their corresponding balance sheet caption and consisted of the following types of instruments as of June 28, 2015 and December 31, 2014 (in thousands): June 28, 2015 December 31, 2014 Fair Value Measurements at Reporting Date Using Fair Value Measurements at Reporting Date Using (Level 1) Total (Level 1) Total Assets measured at fair value: Cash equivalents: Money market funds $ 15,009 $ 15,009 $ 7,007 $ 7,007 Restricted cash: Money market funds 1,807 1,807 1,806 1,806 Total assets measured at fair value $ 16,816 $ 16,816 $ 8,813 $ 8,813

REVOLVING CREDIT FACILITY

REVOLVING CREDIT FACILITY	6 Months Ended
	Jun. 28, 2015
Debt Disclosure [Abstract]
Revolving Credit Facility	REVOLVING CREDIT FACILITY On April 12, 2013, we entered into a three -year $25.0 million senior secured revolving credit facility with Silicon Valley Bank. On October 21, 2014, we entered into Amendment Agreement No. 4 with Silicon Valley Bank, which (i) extended the term of our credit facility to October 12, 2017, (ii) amended and/or waived compliance with certain financial covenants, and (iii) granted us the ability to make a one-time request to increase the existing credit facility up to an additional $25.0 million . As of June 28, 2015 and December 31, 2014 , we had no outstanding borrowings under the credit facility. For a further discussion of our credit facility, see Note 5. Revolving Credit Facility in the notes to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2014 .

RESTRUCTURING AND OTHER CHARGES

RESTRUCTURING AND OTHER CHARGES	6 Months Ended
	Jun. 28, 2015
Restructuring Charges [Abstract]
Restructuring and Other Charges	RESTRUCTURING AND OTHER CHARGES In December 2011, our management approved and initiated a cost reduction plan ("2011 Restructuring Plan") as part of a broad-based cost reduction initiative. The 2011 Restructuring Plan included the consolidation of our manufacturing and research and development facilities, including contract termination costs related to two vacant facilities; moving a portion of our outsourced spare parts logistics operations in-house; and workforce reductions. We are continuing to make payments related to these restructuring activities through fiscal year 2015. As of June 28, 2015 and December 31, 2014 , we had accrued restructuring charges of $0.1 million and $0.4 million , respectively, which were classified within other current liabilities in the condensed consolidated balance sheets. During the three and six months ended June 28, 2015 , we did not incur any restructuring and other charges. During the three and six months ended June 29, 2014 , we incurred $0.1 million in restructuring charges related to workforce reductions.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 28, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	COMMITMENTS AND CONTINGENCIES Warranty The warranty offered by us on our system sales is generally twelve months, and excludes certain consumable maintenance items. A provision for the estimated cost of warranty, based on historical costs, is recorded as cost of goods sold when the revenue is recognized. Our warranty obligations require us to repair or replace defective products or parts during the warranty period at no cost to the customer. The actual system performance and/or field warranty expense profiles may differ from historical experience, and in those cases, we adjust our warranty accruals accordingly. The following table summarizes changes in our product warranty accrual for the three and six months ended June 28, 2015 and June 29, 2014 (in thousands): Three Months Ended Six Months Ended June 28, June 29, June 28, June 29, Beginning balance $ 3,343 $ 1,932 $ 2,803 $ 1,786 Warranties issued in the period 777 599 1,649 1,151 Costs to service warranties (879 ) (1,099 ) (1,861 ) (1,682 ) Warranty accrual adjustments 225 656 875 833 Ending balance $ 3,466 $ 2,088 $ 3,466 $ 2,088 Guarantees In the ordinary course of business, our bank provides standby letters of credit or other guarantee instruments on our behalf to certain parties as required. The standby letters of credit are secured by bank accounts and money market funds, which are classified as restricted cash in the accompanying condensed consolidated balance sheets. We have never recorded any liability in connection with these guarantee arrangements beyond what is required to appropriately account for the underlying transaction being guaranteed. We do not believe, based on historical experience and information currently available, that it is probable that any amounts will be required to be paid under such guarantee arrangements. As of June 28, 2015 , the maximum potential amount that we could be required to pay was $1.9 million , the total amount of outstanding standby letters of credit, which were secured by $2.0 million in bank accounts and money market collateral accounts. This amount was recorded as restricted cash as of June 28, 2015 . In connection with our acquisition of Vortek Industries, Ltd. ("Vortek") in 2004, we became party to an agreement between Vortek and the Canadian Minister of Industries (the "Minister") relating to an investment in Vortek by Technology Partnerships Canada. Under the agreement, as amended, we, or Vortek (renamed Mattson Technology, Canada, Inc. ("MTC")) agreed to various terms, including (i) payment by us of a royalty to the Minister of 1.4 percent of net sales from certain Flash RTP products, up to a total of C$14.3 million (approximately $11.6 million based on the applicable exchange rate as of June 28, 2015 ), (ii) MTC maintaining a specified average workforce of employees in Canada, making certain investments and complying with certain manufacturing requirements, each, through October 27, 2009, and (iii) certain other covenants concerning protection of intellectual property rights. Under the provisions of this agreement, if MTC is dissolved, files for bankruptcy or we, or MTC, do not materially satisfy the obligations pursuant to any material terms or conditions, the Minister could demand payment of liquidated damages in the amount of C$14.3 million less any royalties paid to the Minister. As of October 27, 2009, we were no longer subject to covenant (ii), as discussed above but are still subject to the remaining terms and conditions until the earlier of payment of royalty of C$14.3 million less any royalties paid to date, or through December 31, 2020. We have recorded approximately C$0.6 million in cumulative royalty charges to date. The movement of our Canadian operations to Germany did not result in the dissolution of MTC. We are a party to a variety of agreements, pursuant to which we may be obligated to indemnify other parties with respect to certain matters. Typically, these obligations arise in the context of contracts under which we may agree to hold other parties harmless against losses arising from a breach of representations or with respect to certain intellectual property, operations or tax-related matters. Our obligations under these agreements may be limited in terms of time and/or amount, and in some instances, we may have defenses to asserted claims and/or recourse against third parties for payments made. It is not possible to predict the maximum potential amount of future payments under these or similar agreements due to the conditional nature of our obligations and the unique facts and circumstances involved in each particular agreement. Historically, our payments under these agreements have not had a material effect on our financial position, results of operations or cash flows. We believe if we were to incur a loss in any of these matters, such loss would not have a material effect on our financial position, results of operations or cash flows. We indemnify our directors and certain employees as permitted by law, and have entered into indemnification agreements with our directors and certain senior officers. We have not recorded a liability associated with these indemnification agreements, as we historically have not incurred any material costs associated with such indemnification agreements. Costs associated with such indemnification agreements may be mitigated, in whole or only in part, by insurance coverage that we maintain. Litigation In the ordinary course of business, we are subject to claims and litigation, including claims that we infringe third party patents, trademarks and other intellectual property rights. Although we believe that it is unlikely that any current claims or actions will have a material adverse impact on our operating results or our financial position, given the uncertainty of litigation, we cannot be certain of this. The defense of claims or actions against us, even if without merit, could result in the expenditure of significant financial and managerial resources. We record a legal liability when we believe it is both probable that a liability has been incurred, and the amount can be reasonably estimated. We monitor developments in our legal matters that could affect the estimate we have previously accrued. Significant judgment is required to determine both probability and the estimated amount.

EMPLOYEE STOCK PLANS

EMPLOYEE STOCK PLANS	6 Months Ended
	Jun. 28, 2015
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract]
Employee Stock Plans	EMPLOYEE STOCK PLANS As of June 28, 2015 , we had approximately 3.9 million shares available for future grants under our 2012 Equity Incentive Plan (the "2012 Plan"). On May 28, 2015, the stockholders approved an amendment to our 2012 Plan, (i) increasing the number of shares reserved for issuance under the 2012 Plan by an additional 2.5 million shares bringing the total number of shares reserved thereunder, to 19,475,000 shares; and (ii) removing the 1.75 share accounting ratio applicable to stock awards and restricted stock units. Stock Options Options to purchase common stock granted under the 2012 Plan generally have terms not exceeding seven years. Options to purchase stock under our equity incentive plans are generally granted at exercise prices that are at least 100 percent of the fair market value of our common stock on the date of grant. Generally, options granted to new employees typically vest over a period of four years at a rate of 25 percent after the first year and 1/48th of the initial amount granted each month thereafter, and beginning in 2014, options granted to established employees with more than 1 -year of service, typically vest over a period of four years at a rate of 1/48th each month. The following table summarizes the stock option activity under all of our equity incentive plans for the six months ended June 28, 2015 : Number of Shares Weighted- Weighted- Average Remaining Term Aggregate Intrinsic Value (thousands) (per share) (years) (thousands) Outstanding as of December 31, 2014 4,920 $ 2.01 Granted 711 $ 3.38 Exercised (776 ) $ 2.05 Forfeited or expired (279 ) $ 5.07 Outstanding as of June 28, 2015 4,576 $ 2.03 4.6 $ 6,651 Exercisable as of June 28, 2015 2,690 $ 1.75 3.8 $ 4,657 The aggregate intrinsic value represents the pre-tax differences between the exercise price of stock options and the quoted market price of our stock on June 26, 2015 for all in-the-money options. The following table provides supplemental information pertaining to our stock options for the six months ended June 28, 2015 and June 29, 2014 (in thousands, except weighted-average fair values): Six Months Ended June 28, June 29, Weighted-average fair value of options granted, per share $ 1.70 $ 1.24 Intrinsic value of options exercised $ 2,013 $ 358 Cash received from options exercised $ 1,588 $ 256 Restricted Stock Units The 2012 Plan provides for grants of time-based and performance-based restricted stock units ("RSUs"). As of June 28, 2015 , we only had time-based RSUs outstanding. Time-Based Restricted Stock Units Historically, 25 percent of the time-based RSUs vest on each anniversary of the vesting commencement date or date of grant. In December 2013, our Board of Directors approved a quarterly vesting schedule for RSUs. On occasion, we grant time-based RSUs for varying purposes with different vesting schedules. Time-based RSUs granted prior to May 28, 2015 under the 2012 Plan are counted against the total number of shares of common stock available for grant under the 2012 Plan at 1.75 shares of common stock for every one share of common stock subject thereto. The associated stock-based compensation expense on time-based RSUs is determined based on the fair value of our common stock on the date of grant of the RSU and recognized over the vesting period. The following table summarizes RSU activity under all of our equity incentive plans for the six months ended June 28, 2015 : Number of Shares Weighted Average Grant Date Fair Value (thousands) (per share) Outstanding as of December 31, 2014 877 $ 2.06 Granted 921 $ 3.37 Released (293 ) $ 2.33 Forfeited (57 ) $ 2.78 Outstanding as of June 28, 2015 1,448 $ 2.81 Employee Stock Purchase Plan Our 1994 Employee Stock Purchase Plan ("1994 Plan") is a non-compensatory employee stock purchase plan ("ESPP"), which allows each eligible employee to withhold up to 15 percent of gross compensation over semi-annual six month ESPP periods to purchase shares of our common stock, limited to 4,000 shares per ESPP period in 2015. Under the ESPP, employees purchase stock at a price equal to 90 percent of the fair market value (generally the closing price of our common stock) on the last trading day prior to the end of the six month ESPP offering period. We reserved 6.2 million shares of common stock for issuance under the ESPP, of which 2.5 million shares were available for issuance as of June 28, 2015 . We issued approximately 40,000 shares during the first ESPP period in 2015, with an average purchase price of $3.51 .

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	6 Months Ended
	Jun. 28, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	STOCK-BASED COMPENSATION We account for stock-based compensation in accordance with the applicable authoritative guidance, which requires the measurement of stock-based compensation on the date of grant based on the fair value of the award, and the recognition of the expense over the requisite service period for the employee. Compensation related to RSUs is the intrinsic value on the date of grant, which is the closing price of our common stock less the employee exercise price, if any. Compensation related to stock options is determined using a stock option valuation model. Valuation Assumptions We use the Black-Scholes valuation model to determine the fair value of stock options. The Black-Scholes model requires the input of highly subjective assumptions, which are summarized in the table below for the three and six months ended June 28, 2015 and June 29, 2014 : Three Months Ended Six Months Ended June 28, June 29, June 28, June 29, Expected dividend yield — — — — Expected stock price volatility 65% 67% 66% 67% Risk-free interest rate 1.3% 1.3% 1.1% 1.3% Expected life of options in years 4.0 4.0 4.0 4.0 We estimate the expected life of options based on an analysis of our historical experience of employee exercise and post-vesting termination behavior considered in relation to the contractual life of the option. Expected volatility is based on the historical volatility of our common stock; and the risk-free interest rate is the rate on a U.S. Treasury Bill, with a maturity approximating the expected life of the option. We do not currently pay cash dividends on our common stock and do not anticipate doing so in the foreseeable future. Accordingly, the expected dividend yield is zero . Our stock-based compensation for the three and six months ended June 28, 2015 and June 29, 2014 was as follows (in thousands): Three Months Ended Six Months Ended June 28, June 29, June 28, June 29, Stock-based compensation by type of award: Stock options $ 266 $ 249 $ 511 $ 496 Restricted stock units 307 126 573 165 Employee stock purchase plan 5 12 10 24 $ 578 $ 387 $ 1,094 $ 685 Stock-based compensation by category of expense: Cost of goods sold $ 39 $ 8 $ 73 $ 11 Research, development and engineering 70 47 133 87 Selling, general and administrative 469 332 888 587 $ 578 $ 387 $ 1,094 $ 685 We did not capitalize any stock-based compensation into inventory in the three and six months ended June 28, 2015 and June 29, 2014 , as such amounts were immaterial. As of June 28, 2015 , we had $1.8 million in unrecognized stock-based compensation expense, net of estimated forfeitures, related to stock options which will be recognized over a weighted-average period of 2.6 years. As of June 28, 2015 , we had $3.0 million in unrecognized stock-based compensation expense, net of estimated forfeitures, related to unvested RSUs which will be recognized over a weighted-average period of 3.0 years.

GEOGRAPHIC AND CUSTOMER CONCENT

GEOGRAPHIC AND CUSTOMER CONCENTRATION INFORMATION	6 Months Ended
	Jun. 28, 2015
Geographic and Customer Concentration Information [Abstract]
Geographic and Customer Concentration Information	GEOGRAPHIC AND CUSTOMER CONCENTRATION INFORMATION The authoritative guidance on segment reporting and disclosure defines an operating segment as a component of an enterprise for which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. For the purposes of evaluating our reportable segments, our Chief Executive Officer is the chief operating decision maker. We have one operating segment in which we design, manufacture and market advanced fabrication equipment for the semiconductor manufacturing industry. As our business is completely focused on one industry segment, the design, manufacture and marketing of advanced fabrication equipment to the semiconductor manufacturing industry, management believes that we have one reportable segment. Our net revenue and profits are generated from the sales of systems and services in this one segment. The following table summarizes net revenue by geographic areas based on the installation locations of the systems and the location of services rendered (in thousands, except percentages): Three Months Ended Six Months Ended June 28, 2015 June 29, 2014 June 28, 2015 June 29, 2014 Amount Percent Amount Percent Amount Percent Amount Percent Net revenue: United States $ 3,006 7 $ 6,392 15 $ 11,574 11 $ 10,575 12 South Korea 26,742 62 23,863 57 60,740 60 34,122 40 China 5,115 12 2,268 5 8,715 9 15,349 18 Taiwan 2,518 6 5,498 13 8,038 8 16,320 19 Other Asia 4,866 11 1,589 4 10,230 10 3,870 5 Europe and others 1,087 2 2,419 6 2,291 2 4,991 6 $ 43,334 100 $ 42,029 100 $ 101,588 100 $ 85,227 100 For the three months ended June 28, 2015 , one customer accounted for 10 percent or more of our total net revenue, representing approximately 67 percent of our total net revenue. For the six months ended June 28, 2015 , one customer accounted for 10 percent or more of our total net revenue, representing approximately 65 percent of our total net revenue. For the three months ended June 29, 2014 , two customers accounted for 10 percent or more of our total net revenue, representing approximately 60 percent and 14 percent of our total net revenue, respectively. For the six months ended June 29, 2014 , two customers accounted for 10 percent or more of our total net revenue, representing approximately 60 percent and 10 percent of our total net revenue, respectively. As of June 28, 2015 , one customer accounted for 10 percent or more of our total net accounts receivable, representing approximately 59 percent of our total net accounts receivable. As of December 31, 2014 , one customer accounted for 10 percent or more of our net accounts receivable, representing approximately 74 percent of our total net accounts receivable. Geographical information relating to our property and equipment, net, as of June 28, 2015 and December 31, 2014 was as follows (in thousands): June 28, December 31, Property and equipment, net: United States $ 4,294 $ 4,140 Germany 5,099 3,185 Others 194 209 $ 9,587 $ 7,534

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 28, 2015
Income Tax Disclosure [Abstract]
Income Taxes	INCOME TAXES On a quarterly basis, we record our income tax expense or benefit based on our year-to-date results and expected results for the remainder of the year. For the three and six months ended June 28, 2015 , we recorded an income tax provision of $0.1 million and $0.6 million , respectively. For the three and six months ended June 29, 2014 , we recorded a minimal income tax benefit and a $0.2 million income tax provision, respectively. The net tax provision for all periods was the result of the mix of profits earned by us in tax jurisdictions with a broad range of income tax rates.

NET INCOME (LOSS) PER SHARE

NET INCOME (LOSS) PER SHARE	6 Months Ended
	Jun. 28, 2015
Earnings Per Share [Abstract]
Net Income (Loss) Per Share	NET INCOME PER SHARE We present both basic and diluted net income per share on the face of our condensed consolidated statements of operations in accordance with the authoritative guidance on earnings per share. Basic net income per common share 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 of common stock is computed using the weighted average number of shares of common stock outstanding plus the effect of common stock equivalents, unless the common stock equivalents are anti-dilutive. The potential dilutive shares of our common stock are determined using the treasury stock method. Under the treasury stock method, the amount the employee must pay for exercising stock options, the amount of compensation cost yet to be recognized for future service, and the amount of tax benefits that is to be recorded when the award becomes deductible are assumed to be used to repurchase shares. The following table presents the computation of net income per share of common stock (in thousands, except per share data): Three Months Ended Six Months Ended June 28, June 29, June 28, June 29, Numerator: Net income $ 2,581 $ 1,916 $ 8,886 $ 4,381 Denominator: Weighted-average shares outstanding - basic 74,920 73,532 74,611 69,943 Effect of dilutive stock options and restricted stock units 2,099 1,147 2,362 1,462 Weighted-average shares outstanding - diluted 77,019 74,679 76,973 71,405 Net income per share of common stock: Basic $ 0.03 $ 0.03 $ 0.12 $ 0.06 Diluted $ 0.03 $ 0.03 $ 0.12 $ 0.06 For the three and six months ended June 28, 2015 , options and RSUs totaling 0.8 million shares and 0.7 million shares, respectively, were excluded from diluted net income per share because their inclusion would have been anti-dilutive. For the three and six months ended June 29, 2014 , options and RSUs totaling 2.9 million shares and 2.5 million shares, respectively, were excluded from diluted net income per share because their inclusion would have been anti-dilutive effect.

BASIS OF PRESENTATION AND SIG18

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 28, 2015
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the instructions to Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by such accounting principles for complete financial statements. In the opinion of management, all adjustments (which include normal recurring adjustments) considered necessary to present fairly each of the statement of financial position as of June 28, 2015 , the statements of operations for the three and six months ended June 28, 2015 and June 29, 2014 , statements of comprehensive income for the three and six months ended June 28, 2015 and June 29, 2014 , and the statements of cash flows for the six months ended June 28, 2015 and June 29, 2014 , as applicable, have been made. The condensed consolidated balance sheet as of December 31, 2014 has been derived from our audited financial statements as of such date, but does not include all disclosures required by U.S. GAAP. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements for the year ended December 31, 2014 , which are included in the Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 12, 2015 . The condensed consolidated financial statements include the accounts of Mattson Technology, Inc. and our wholly-owned subsidiaries. All inter-company balances and transactions have been eliminated. The results of operations for the three and six months ended June 28, 2015 are not necessarily indicative of results that may be expected for the entire year ending December 31, 2015 .
Fiscal Year	Fiscal Year Our fiscal year ends on December 31. We close our first fiscal quarter on the Sunday closest to March 31. Our second and third fiscal quarters are each 13 weeks long and our fourth quarter closes on December 31.
Use of Estimates	Use of Estimates The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reported periods. We evaluate our estimates on an ongoing basis, including those related to the useful lives and fair value of long-lived assets, estimates used to determine facility lease loss liabilities, measurement of warranty obligations, valuation allowances for deferred tax assets, the fair value of stock-based compensation, estimates for allowance for doubtful accounts, and valuation of excess and obsolete inventories. Our estimates and assumptions can be subjective and complex and, consequently, actual results could differ materially from those estimates.
Reclassifications	Reclassifications For presentation purposes, certain prior period amounts have been reclassified to conform to the reporting in the current period financial statements. These reclassifications do not affect our net income, cash flows or stockholders' equity.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-03, Simplifying the Presentation of Debt Issuance Costs. Debt issuance costs are specified incremental costs, other than those paid to the lender, that are directly attributable to issuing a debt instrument (i.e., third party costs). Prior to the adoption of this standard, debt issuance costs were required to be presented in the balance sheet as a deferred charge (i.e., an asset). This presentation differed from the presentation for a debt discount, which is a direct adjustment to the carrying value of the debt (i.e., a contra liability). This new standard requires that all costs incurred to issue debt be presented in the balance sheet as a direct deduction from the carrying value of the debt. This new standard does not affect the recognition and measurement of debt issuance costs. ASU 2015-03 will be effective for us in the first quarter of fiscal 2016, with early adoption permitted. We do not expect the adoption of this accounting standard to have a material impact on our financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. The FASB issued ASU 2014-09 to clarify the principles for recognizing revenue and to develop a common revenue standard for GAAP and International Financial Reporting Standards. The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes the most current revenue recognition guidance. In July 2015, the FASB delayed the effective date of this standard by one year. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2017, which is effective for us as of the first quarter of our fiscal year ending December 31, 2018. We are currently evaluating the impact that the implementation of this standard will have on our financial statements. There were no other recent accounting pronouncements or changes in accounting pronouncements during the six months ended June 28, 2015 compared to the recent accounting pronouncements described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014 that are of significance or potential significance to us.

BALANCE SHEET DETAILS (Tables)

BALANCE SHEET DETAILS (Tables)	6 Months Ended
	Jun. 28, 2015
Balance Sheet Related Disclosures [Abstract]
Schedule of Components of Inventories	Components of inventories as of June 28, 2015 and December 31, 2014 are shown below (in thousands): June 28, December 31, Inventories: Purchased parts and raw materials $ 31,099 $ 28,143 Work-in-process 9,567 10,832 Finished goods 2,102 1,604 $ 42,768 $ 40,579
Schedule of Components of Prepaid Expense and Other Current Assets	Components of prepaid expenses and other current assets as of June 28, 2015 and December 31, 2014 are shown below (in thousands): June 28, December 31, Prepaid expenses and other current assets: Value-added tax $ 3,059 $ 4,184 Other current assets 4,456 5,583 $ 7,515 $ 9,767
Schedule of Components of Property and Equipment	Components of property and equipment as of June 28, 2015 and December 31, 2014 are shown below (in thousands): June 28, December 31, Property and equipment, net: Machinery and equipment $ 41,866 $ 40,777 Furniture and fixtures 8,634 9,079 Leasehold improvements 16,471 17,646 66,971 67,502 Less: accumulated depreciation (57,384 ) (59,968 ) $ 9,587 $ 7,534
Schedule of Components of Other Current Liabilities	Components of other current liabilities as of June 28, 2015 and December 31, 2014 are shown below (in thousands): June 28, December 31, Other current liabilities: Warranty $ 3,466 $ 2,803 Value-added tax 1,035 1,547 Accrued restructuring charge, current 112 366 Other 2,126 1,914 $ 6,739 $ 6,630

FAIR VALUE MEASUREMENT (Tables)

FAIR VALUE MEASUREMENT (Tables)	6 Months Ended
	Jun. 28, 2015
Fair Value Disclosures [Abstract]
Schedule of Assets and Liabilities Measured on Recurring Basis	Assets and liabilities measured at fair value on a recurring basis are shown in the table below by their corresponding balance sheet caption and consisted of the following types of instruments as of June 28, 2015 and December 31, 2014 (in thousands): June 28, 2015 December 31, 2014 Fair Value Measurements at Reporting Date Using Fair Value Measurements at Reporting Date Using (Level 1) Total (Level 1) Total Assets measured at fair value: Cash equivalents: Money market funds $ 15,009 $ 15,009 $ 7,007 $ 7,007 Restricted cash: Money market funds 1,807 1,807 1,806 1,806 Total assets measured at fair value $ 16,816 $ 16,816 $ 8,813 $ 8,813

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
	Jun. 28, 2015
Commitments and Contingencies Disclosure [Abstract]
Summary of Changes in Product Warranty Accrual	The following table summarizes changes in our product warranty accrual for the three and six months ended June 28, 2015 and June 29, 2014 (in thousands): Three Months Ended Six Months Ended June 28, June 29, June 28, June 29, Beginning balance $ 3,343 $ 1,932 $ 2,803 $ 1,786 Warranties issued in the period 777 599 1,649 1,151 Costs to service warranties (879 ) (1,099 ) (1,861 ) (1,682 ) Warranty accrual adjustments 225 656 875 833 Ending balance $ 3,466 $ 2,088 $ 3,466 $ 2,088

EMPLOYEE STOCK PLANS (Tables)

EMPLOYEE STOCK PLANS (Tables)	6 Months Ended
	Jun. 28, 2015
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract]
Schedule of Stock Option Activity	The following table summarizes the stock option activity under all of our equity incentive plans for the six months ended June 28, 2015 : Number of Shares Weighted- Weighted- Average Remaining Term Aggregate Intrinsic Value (thousands) (per share) (years) (thousands) Outstanding as of December 31, 2014 4,920 $ 2.01 Granted 711 $ 3.38 Exercised (776 ) $ 2.05 Forfeited or expired (279 ) $ 5.07 Outstanding as of June 28, 2015 4,576 $ 2.03 4.6 $ 6,651 Exercisable as of June 28, 2015 2,690 $ 1.75 3.8 $ 4,657 The aggregate intrinsic value represents the pre-tax differences between the exercise price of stock options and the quoted market price of our stock on June 26, 2015 for all in-the-money options. The following table provides supplemental information pertaining to our stock options for the six months ended June 28, 2015 and June 29, 2014 (in thousands, except weighted-average fair values): Six Months Ended June 28, June 29, Weighted-average fair value of options granted, per share $ 1.70 $ 1.24 Intrinsic value of options exercised $ 2,013 $ 358 Cash received from options exercised $ 1,588 $ 256
Schedule of Restricted Stock Units	The following table summarizes RSU activity under all of our equity incentive plans for the six months ended June 28, 2015 : Number of Shares Weighted Average Grant Date Fair Value (thousands) (per share) Outstanding as of December 31, 2014 877 $ 2.06 Granted 921 $ 3.37 Released (293 ) $ 2.33 Forfeited (57 ) $ 2.78 Outstanding as of June 28, 2015 1,448 $ 2.81

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 28, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Valuation Assumptions	The Black-Scholes model requires the input of highly subjective assumptions, which are summarized in the table below for the three and six months ended June 28, 2015 and June 29, 2014 : Three Months Ended Six Months Ended June 28, June 29, June 28, June 29, Expected dividend yield — — — — Expected stock price volatility 65% 67% 66% 67% Risk-free interest rate 1.3% 1.3% 1.1% 1.3% Expected life of options in years 4.0 4.0 4.0 4.0
Schedule of Stock-Based Compensation	Our stock-based compensation for the three and six months ended June 28, 2015 and June 29, 2014 was as follows (in thousands): Three Months Ended Six Months Ended June 28, June 29, June 28, June 29, Stock-based compensation by type of award: Stock options $ 266 $ 249 $ 511 $ 496 Restricted stock units 307 126 573 165 Employee stock purchase plan 5 12 10 24 $ 578 $ 387 $ 1,094 $ 685 Stock-based compensation by category of expense: Cost of goods sold $ 39 $ 8 $ 73 $ 11 Research, development and engineering 70 47 133 87 Selling, general and administrative 469 332 888 587 $ 578 $ 387 $ 1,094 $ 685

GEOGRAPHIC AND CUSTOMER CONCE24

GEOGRAPHIC AND CUSTOMER CONCENTRATION INFORMATION (Tables)	6 Months Ended
	Jun. 28, 2015
Geographic and Customer Concentration Information [Abstract]
Summary of Net Revenue by Geographic Area	The following table summarizes net revenue by geographic areas based on the installation locations of the systems and the location of services rendered (in thousands, except percentages): Three Months Ended Six Months Ended June 28, 2015 June 29, 2014 June 28, 2015 June 29, 2014 Amount Percent Amount Percent Amount Percent Amount Percent Net revenue: United States $ 3,006 7 $ 6,392 15 $ 11,574 11 $ 10,575 12 South Korea 26,742 62 23,863 57 60,740 60 34,122 40 China 5,115 12 2,268 5 8,715 9 15,349 18 Taiwan 2,518 6 5,498 13 8,038 8 16,320 19 Other Asia 4,866 11 1,589 4 10,230 10 3,870 5 Europe and others 1,087 2 2,419 6 2,291 2 4,991 6 $ 43,334 100 $ 42,029 100 $ 101,588 100 $ 85,227 100
Summary of Geographic Information Relating to Property and Equipment	Geographical information relating to our property and equipment, net, as of June 28, 2015 and December 31, 2014 was as follows (in thousands): June 28, December 31, Property and equipment, net: United States $ 4,294 $ 4,140 Germany 5,099 3,185 Others 194 209 $ 9,587 $ 7,534

NET INCOME (LOSS) PER SHARE (Ta

NET INCOME (LOSS) PER SHARE (Tables)	6 Months Ended
	Jun. 28, 2015
Earnings Per Share [Abstract]
Summary of Computation of Net Income Per Share of Common Stock	The following table presents the computation of net income per share of common stock (in thousands, except per share data): Three Months Ended Six Months Ended June 28, June 29, June 28, June 29, Numerator: Net income $ 2,581 $ 1,916 $ 8,886 $ 4,381 Denominator: Weighted-average shares outstanding - basic 74,920 73,532 74,611 69,943 Effect of dilutive stock options and restricted stock units 2,099 1,147 2,362 1,462 Weighted-average shares outstanding - diluted 77,019 74,679 76,973 71,405 Net income per share of common stock: Basic $ 0.03 $ 0.03 $ 0.12 $ 0.06 Diluted $ 0.03 $ 0.03 $ 0.12 $ 0.06

BASIS OF PRESENTATION AND SIG26

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - $ / shares	Jul. 28, 2005	Jun. 28, 2015	Dec. 31, 2014
Accounting Policies [Abstract]
Preferred stock purchase right, dividend distribution (in shares)	1
Common stock, par value per share (in usd per share)	$ 0.001	$ 0.001	$ 0.001

BALANCE SHEET DETAILS - Narrati

BALANCE SHEET DETAILS - Narrative (Details) - USD ($) $ in Thousands	Jun. 28, 2015	Dec. 31, 2014
Balance Sheet Related Disclosures [Abstract]
Restricted cash	$ 1,979	$ 1,993

BALANCE SHEET DETAILS - Schedul

BALANCE SHEET DETAILS - Schedule of Components of Inventories (Details) - USD ($) $ in Thousands	Jun. 28, 2015	Dec. 31, 2014
Balance Sheet Related Disclosures [Abstract]
Purchased parts and raw materials	$ 31,099	$ 28,143
Work-in-process	9,567	10,832
Finished goods	2,102	1,604
Inventories, net	$ 42,768	$ 40,579

BALANCE SHEET DETAILS - Sched29

BALANCE SHEET DETAILS - Schedule of Components of Prepaid Expense and Other Current Assets (Details) - USD ($) $ in Thousands	Jun. 28, 2015	Dec. 31, 2014
Balance Sheet Related Disclosures [Abstract]
Value-added tax	$ 3,059	$ 4,184
Other current assets	4,456	5,583
Prepaid expenses and other current assets	$ 7,515	$ 9,767

BALANCE SHEET DETAILS - Sched30

BALANCE SHEET DETAILS - Schedule of Components of Property and Equipment (Details) - USD ($) $ in Thousands	Jun. 28, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Property, and equipment, gross	$ 66,971	$ 67,502
Less: accumulated depreciation	(57,384)	(59,968)
Property and equipment, net	9,587	7,534
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property, and equipment, gross	41,866	40,777
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, and equipment, gross	8,634	9,079
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, and equipment, gross	$ 16,471	$ 17,646

BALANCE SHEET DETAILS - Sched31

BALANCE SHEET DETAILS - Schedule of Components of Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 28, 2015	Dec. 31, 2014
Balance Sheet Related Disclosures [Abstract]
Warranty	$ 3,466	$ 2,803
Value-added tax	1,035	1,547
Accrued restructuring charge, current	112	366
Other	2,126	1,914
Other current liabilities	$ 6,739	$ 6,630

FAIR VALUE MEASUREMENT - Narrat

FAIR VALUE MEASUREMENT - Narrative (Details) - USD ($)	Jun. 28, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Transfers of assets between Level 1, 2 and 3	$ 0	$ 0
Transfers of liabilities between Level 1, 2 and 3	0	0
Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets at fair value	0	0
Liabilities at fair value	0	0
Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets at fair value	0	0
Liabilities at fair value	$ 0	$ 0

FAIR VALUE MEASUREMENT - Schedu

FAIR VALUE MEASUREMENT - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 28, 2015	Dec. 31, 2014
Assets measured at fair value:
Restricted cash	$ 1,979	$ 1,993
Fair Value, Measurements, Recurring | Fair Value Disclosure, Total
Assets measured at fair value:
Total assets measured at fair value	16,816	8,813
Fair Value, Measurements, Recurring | Money Market Funds | Fair Value Disclosure, Total
Assets measured at fair value:
Cash and cash equivalents	15,009	7,007
Restricted cash	1,807	1,806
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1
Assets measured at fair value:
Total assets measured at fair value	16,816	8,813
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Money Market Funds
Assets measured at fair value:
Cash and cash equivalents	15,009	7,007
Restricted cash	$ 1,807	$ 1,806

REVOLVING CREDIT FACILITY - Nar

REVOLVING CREDIT FACILITY - Narrative (Details) - Revolving Credit Facility - USD ($)	Apr. 12, 2013	Jun. 28, 2015	Dec. 31, 2014	Oct. 21, 2014
Line of Credit Facility [Line Items]
Line of credit facility term	3 years
Line of credit facility, maximum borrowing capacity	$ 25,000,000
Line of credit facility, outstanding borrowings		$ 0	$ 0
Amended Credit Facility
Line of Credit Facility [Line Items]
Line of credit facility, additional borrowing capacity				$ 25,000,000

RESTRUCTURING AND OTHER CHARG35

RESTRUCTURING AND OTHER CHARGES - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 28, 2015	Jun. 29, 2014	Jun. 28, 2015	Jun. 29, 2014	Dec. 31, 2014
Restructuring Cost and Reserve [Line Items]
Accrued restructuring charge	$ 112		$ 112		$ 366
Restructuring and other charges	0	$ 111	0	$ 111
Workforce Reductions
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges		$ 100		$ 100
Other Current Liabilities
Restructuring Cost and Reserve [Line Items]
Accrued restructuring charge	$ 100		$ 100		$ 400

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Narrative (Details) $ in Thousands, CAD in Millions	6 Months Ended
	Jun. 28, 2015USD ($)	Jun. 28, 2015CAD	Dec. 31, 2014USD ($)
Guarantor Obligations [Line Items]
Length of product warranty on system sales	12 months
Restricted cash	$ 1,979		$ 1,993
Financial Standby Letter of Credit
Guarantor Obligations [Line Items]
Total amount of outstanding standby letters of credit	$ 1,900
Vortek Industries
Guarantor Obligations [Line Items]
Royalty guarantees payments, percentage of net sales from certain Flash RTP products	1.40%	1.40%
Vortek Industries | Royalty Agreements
Guarantor Obligations [Line Items]
Potential cash payment to Canadian Minister of Industries from certain Flash RTP products in connection with acquisition of Vortek Industries, Ltd.	$ 11,600	CAD 14.3
Royalty charges to date | CAD		CAD 0.6

COMMITMENTS AND CONTINGENCIES37

COMMITMENTS AND CONTINGENCIES - Summary of Changes in Product Warranty Accrual (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 28, 2015	Jun. 29, 2014	Jun. 28, 2015	Jun. 29, 2014
Movement in Product Warranty, Increase (Decrease) [Roll Forward]
Beginning balance	$ 3,343	$ 1,932	$ 2,803	$ 1,786
Warranties issued in the period	777	599	1,649	1,151
Costs to service warranties	(879)	(1,099)	(1,861)	(1,682)
Warranty accrual adjustments	225	656	875	833
Ending balance	$ 3,466	$ 2,088	$ 3,466	$ 2,088

EMPLOYEE STOCK PLANS - Narrativ

EMPLOYEE STOCK PLANS - Narrative (Details) - $ / shares	May. 28, 2015	Jun. 28, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Average purchase price (in usd per share)		$ 2.05
Time-based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage vest on each anniversary of the vesting commencement date or date of grant		25.00%
Common stock equivalent shares		1.75
2012 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant (in shares)		3,900,000
Additional number of shares reserved for issuance (in shares)	2,500,000
Number of shares reserved for issuance (in shares)	19,475,000
Common stock equivalent shares		1.75
2012 Equity Incentive Plan | Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price, as a percent of fair market value of common stock on grant date		100.00%
Vesting percentage, first anniversary		25.00%
Award ratable vesting percentage per month		2.08%
Requisite service period to vest over 4 years		1 year
Award ratable vesting period		4 years
2012 Equity Incentive Plan | Stock options | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award terms		7 years
1994 Employee Stock Purchase Plan | Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant (in shares)		2,500,000
Number of shares reserved for issuance (in shares)		6,200,000
Exercise price, as a percent of fair market value of common stock on grant date		90.00%
Maximum employee subscription rate		15.00%
ESPP offering period		6 months
Maximum number of shares per employee (in shares)		4,000
Shares issued in period (in shares)		40,000
Average purchase price (in usd per share)		$ 3.51

EMPLOYEE STOCK PLANS - Schedule

EMPLOYEE STOCK PLANS - Schedule of Stock Option Activity (Details) - Jun. 28, 2015 - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	Total
Number of Shares
Outstanding beginning balance (in shares)	4,920
Granted (in shares)	711
Exercised (in shares)	(776)
Forfeited or expired (in shares)	(279)
Outstanding ending balance (in shares)	4,576
Exercisable (in shares)	2,690
Weighted-Average Exercise Price
Weighted-Average Exercise Price, Outstanding beginning balance (in usd per share)	$ 2.01
Weighted Average Exercise Price, Granted (in usd per share)	3.38
Weighted Average Exercise Price, Exercised (in usd per share)	2.05
Weighted Average Exercise Price, Forfeited or expired (in usd per share)	5.07
Weighted-Average Exercise Price, Outstanding ending balance (in usd per share)	2.03
Weighted Average Exercise Price, Exercisable (in usd per share)	$ 1.75
Weighted Average Remaining Term
Weighted Average Remaining Term, Outstanding	4 years 7 months
Weighted Average Remaining Term, Exercisable	3 years 9 months
Aggregate Intrinsic Value
Aggregate Intrinsic Value, Outstanding	$ 6,651
Aggregate Intrinsic Value, Exercisable	$ 4,657

EMPLOYEE STOCK PLANS - Schedu40

EMPLOYEE STOCK PLANS - Schedule of Stock Option Activity - Supplemental Information (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 28, 2015	Jun. 29, 2014
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract]
Weighted-average fair value of options granted (in usd per share)	$ 1.70	$ 1.24
Intrinsic value of options exercised	$ 2,013	$ 358
Cash received from options exercised	$ 1,588	$ 256

EMPLOYEE STOCK PLANS - Schedu41

EMPLOYEE STOCK PLANS - Schedule of Restricted Stock Units (Details) - 6 months ended Jun. 28, 2015 - Restricted stock units - $ / shares shares in Thousands	Total
Number of Shares
Outstanding beginning balance	877
Granted (in shares)	921
Released (in shares)	(293)
Forfeited (in shares)	(57)
Outstanding ending balance	1,448
Weighted Average Grant Date Fair Value
Weighted Average Grant Date Fair Value, Outstanding beginning balance (usd per share)	$ 2.06
Weighted Average Grant Date Fair Value, Granted (in usd per share)	3.37
Weighted Average Grant Date Fair Value, Released (in usd per share)	2.33
Weighted Average Grant Date Fair Value, Forfeited (in usd per share)	2.78
Weighted Average Grant Date Fair Value, Outstanding ending balance (in usd per share)	$ 2.81

STOCK-BASED COMPENSATION - Summ

STOCK-BASED COMPENSATION - Summary of Valuation Assumptions (Details) - Stock options	3 Months Ended		6 Months Ended
	Jun. 28, 2015	Jun. 29, 2014	Jun. 28, 2015	Jun. 29, 2014
Black-Scholes Valuation Assumptions
Expected dividend yield	0.00%	0.00%	0.00%	0.00%
Expected stock price volatility	65.00%	67.00%	66.00%	67.00%
Risk-free interest rate	1.30%	1.30%	1.10%	1.30%
Expected life of options in years	4 years	4 years	4 years	4 years

STOCK-BASED COMPENSATION - Narr

STOCK-BASED COMPENSATION - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 28, 2015	Jun. 29, 2014	Jun. 28, 2015	Jun. 29, 2014
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividend yield	0.00%	0.00%	0.00%	0.00%
Unrecognized stock-based compensation, related to stock options	$ 1.8		$ 1.8
Weighted average recognition period for stock-based compensation			2 years 6 months 20 days
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation, related to stock options	$ 3		$ 3
Weighted average recognition period for stock-based compensation			2 years 11 months 22 days

STOCK-BASED COMPENSATION - Sche

STOCK-BASED COMPENSATION - Schedule of Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 28, 2015	Jun. 29, 2014	Jun. 28, 2015	Jun. 29, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	$ 578	$ 387	$ 1,094	$ 685
Cost of goods sold
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	39	8	73	11
Research, development and engineering
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	70	47	133	87
Selling, general and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	469	332	888	587
Stock options
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	266	249	511	496
Restricted stock units
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	307	126	573	165
Employee stock purchase plan
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	$ 5	$ 12	$ 10	$ 24

GEOGRAPHIC AND CUSTOMER CONCE45

GEOGRAPHIC AND CUSTOMER CONCENTRATION INFORMATION - Narrative (Details)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 28, 2015customer	Jun. 29, 2014customer	Jun. 28, 2015segmentcustomer	Jun. 29, 2014customer	Dec. 31, 2014customer
Concentration Risk [Line Items]
Number of operating segment | segment			1
Customer Concentration Risk | Net Sales
Concentration Risk [Line Items]
Number of significant customers	1	2	1	2
Customer Concentration Risk | Net Sales | Net Sales, Major Customer A
Concentration Risk [Line Items]
Concentration percentage	67.00%	60.00%	65.00%	60.00%
Customer Concentration Risk | Net Sales | Net Sales, Major Customer B
Concentration Risk [Line Items]
Concentration percentage		14.00%		10.00%
Customer Concentration Risk | Net Accounts Receivable
Concentration Risk [Line Items]
Number of significant customers			1		1
Concentration percentage					74.00%
Customer Concentration Risk | Net Accounts Receivable | Net Accounts Receivable, Major Customer A
Concentration Risk [Line Items]
Concentration percentage			59.00%

GEOGRAPHIC AND CUSTOMER CONCE46

GEOGRAPHIC AND CUSTOMER CONCENTRATION INFORMATION - Summary of Net Revenue by Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 28, 2015	Jun. 29, 2014	Jun. 28, 2015	Jun. 29, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales, amount	$ 43,334	$ 42,029	$ 101,588	$ 85,227
Geographic Concentration Risk | Net Sales
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales, percentage	99.98%	100.00%	100.00%	100.00%
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales, amount	$ 3,006	$ 6,392	$ 11,574	$ 10,575
United States | Geographic Concentration Risk | Net Sales
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales, percentage	7.00%	15.00%	11.00%	12.00%
South Korea
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales, amount	$ 26,742	$ 23,863	$ 60,740	$ 34,122
South Korea | Geographic Concentration Risk | Net Sales
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales, percentage	62.00%	57.00%	60.00%	40.00%
China
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales, amount	$ 5,115	$ 2,268	$ 8,715	$ 15,349
China | Geographic Concentration Risk | Net Sales
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales, percentage	12.00%	5.00%	9.00%	18.00%
Taiwan
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales, amount	$ 2,518	$ 5,498	$ 8,038	$ 16,320
Taiwan | Geographic Concentration Risk | Net Sales
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales, percentage	6.00%	13.00%	8.00%	19.00%
Other Asia
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales, amount	$ 4,866	$ 1,589	$ 10,230	$ 3,870
Other Asia | Geographic Concentration Risk | Net Sales
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales, percentage	11.00%	4.00%	10.00%	5.00%
Europe and others
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales, amount	$ 1,087	$ 2,419	$ 2,291	$ 4,991
Europe and others | Geographic Concentration Risk | Net Sales
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales, percentage	2.00%	6.00%	2.00%	6.00%

GEOGRAPHIC AND CUSTOMER CONCE47

GEOGRAPHIC AND CUSTOMER CONCENTRATION INFORMATION - Summary of Geographic Information Relating to Property and Equipment (Details) - USD ($) $ in Thousands	Jun. 28, 2015	Dec. 31, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	$ 9,587	$ 7,534
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	4,294	4,140
Germany
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	5,099	3,185
Others
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	$ 194	$ 209

INCOME TAXES - Narrative (Detai

INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 28, 2015	Jun. 29, 2014	Jun. 28, 2015	Jun. 29, 2014
Income Tax Disclosure [Abstract]
Provision for (benefit from) income taxes	$ 78	$ (30)	$ 599	$ 159

NET INCOME (LOSS) PER SHARE - S

NET INCOME (LOSS) PER SHARE - Summary of Computation of Net Income Per Share of Common Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 28, 2015	Jun. 29, 2014	Jun. 28, 2015	Jun. 29, 2014
Schedule of Earnings Per Share [Line Items]
Net income	$ 2,581	$ 1,916	$ 8,886	$ 4,381
Denominator:
Weighted-average shares outstanding - basic (in shares)	74,920	73,532	74,611	69,943
Weighted-average shares outstanding - diluted (in shares)	77,019	74,679	76,973	71,405
Basic (in usd per share)	$ 0.03	$ 0.03	$ 0.12	$ 0.06
Diluted (in usd per share)	$ 0.03	$ 0.03	$ 0.12	$ 0.06
Stock Options and Restricted Stock Units
Denominator:
Effect of dilutive stock options and restricted stock units (in shares)	2,099	1,147	2,362	1,462

NET INCOME (LOSS) PER SHARE - N

NET INCOME (LOSS) PER SHARE - Narrative (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jun. 28, 2015	Jun. 29, 2014	Jun. 28, 2015	Jun. 29, 2014
Stock Options and Restricted Stock Units
Schedule of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from diluted net income per share (in shares)	0.8	2.9	0.7	2.5