☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 94-3125814 | |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common Stock ($0.001 par value) | IVAC | The Nasdaq Stock Market LLC (Nasdaq) Global Select |
Large accelerated filer | ☐ | Accelerated filer | ☒ | |||
Non-accelerated filer | ☐ | Smaller reporting company | ☒ | |||
Emerging growth company | ☐ |
No. | Page | |||||
Item 1. | ||||||
Condensed Consolidated Balance Sheets | 3 | |||||
Condensed Consolidated Statements of Operations | 4 | |||||
Condensed Consolidated Statements of Comprehensive | 5 | |||||
Condensed Consolidated Statements of Cash Flows | 6 | |||||
Notes to Condensed Consolidated Financial Statements | 7 | |||||
Item 2. | ||||||
Item 3. | ||||||
Item 4. | ||||||
Item 1. | ||||||
Item 1A. | ||||||
Item 2. | ||||||
Item 3. | ||||||
Item 4. | ||||||
Item 5. | ||||||
Item 6. | ||||||
Item 1. | Financial Statements |
October 2, 2021 | January 2, 2021 | |||||||||||||||
April 3, 2021 | January 2, 2021 | |||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
(In thousands, except par value) | (In thousands, except par value) | |||||||||||||||
ASSETS | ASSETS | ASSETS | ||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 32,816 | $ | 29,341 | $ | 33,696 | $ | 29,341 | ||||||||
Short-term investments | 16,077 | 14,839 | 11,137 | 14,839 | ||||||||||||
Trade and other accounts receivable, net of allowances of $0 at both April 3, 2021 and January 2, 2021 | 18,229 | 28,646 | ||||||||||||||
Trade and other accounts receivable, net of allowances of $0 at both October 2, 2021 and at January 2, 2021 | 13,470 | 28,646 | ||||||||||||||
Inventories | 20,501 | 21,689 | 22,453 | 21,689 | ||||||||||||
Prepaid expenses and other current assets | 1,789 | 1,893 | 1,981 | 1,893 | ||||||||||||
Total current assets | 89,412 | 96,408 | 82,737 | 96,408 | ||||||||||||
Long-term investments | 3,919 | 5,388 | 5,825 | 5,388 | ||||||||||||
Restricted cash | 787 | 787 | 786 | 787 | ||||||||||||
Property, plant and equipment, net | 10,456 | 11,004 | 9,209 | 11,004 | ||||||||||||
Operating lease right-of-use-assets | 7,582 | 8,165 | 6,382 | 8,165 | ||||||||||||
Deferred income taxes and other long-term assets | 5,485 | 5,486 | 5,554 | 5,486 | ||||||||||||
Total assets | $ | 117,641 | $ | 127,238 | $ | 110,493 | $ | 127,238 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | LIABILITIES AND STOCKHOLDERS’ EQUITY | LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||
Current liabilities: | ||||||||||||||||
Current operating lease liabilities | $ | 2,913 | $ | 2,853 | $ | 3,047 | $ | 2,853 | ||||||||
Accounts payable | 2,765 | 4,259 | 4,659 | 4,259 | ||||||||||||
Accrued payroll and related liabilities | 5,150 | 7,679 | 5,657 | 7,679 | ||||||||||||
Other accrued liabilities | 3,136 | 3,598 | 2,649 | 3,631 | ||||||||||||
Customer advances | 42 | 33 | ||||||||||||||
Total current liabilities | 14,006 | 18,422 | 16,012 | 18,422 | ||||||||||||
Noncurrent liabilities: | Noncurrent liabilities: | |||||||||||||||
Noncurrent operating lease liabilities | 6,045 | 6,803 | 4,476 | 6,803 | ||||||||||||
Other long-term liabilities | 435 | 457 | 450 | 457 | ||||||||||||
Total noncurrent liabilities | 6,480 | 7,260 | 4,926 | 7,260 | ||||||||||||
Stockholders’ equity: | Stockholders’ equity: | |||||||||||||||
Common stock, $0.001 par value | 24 | 24 | 25 | 24 | ||||||||||||
Additional paid-in capital | 195,364 | 193,173 | 198,117 | 193,173 | ||||||||||||
Treasury stock, 5,087 shares at both April 3, 2021 and at January 2, 2021 | (29,551 | ) | (29,551 | ) | ||||||||||||
Treasury stock, 5,087 shares at both October 2, 2021 and at January 2, 2021 | (29,551 | ) | (29,551 | ) | ||||||||||||
Accumulated other comprehensive income | 552 | 640 | 557 | 640 | ||||||||||||
Accumulated deficit | (69,234 | ) | (62,730 | ) | (79,593 | ) | (62,730 | ) | ||||||||
Total stockholders’ equity | 97,155 | 101,556 | 89,555 | 101,556 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 117,641 | $ | 127,238 | $ | 110,493 | $ | 127,238 | ||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
October 2, 2021 | September 26, 2020 | October 2, 2021 | September 26, 2020 | |||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
April 3, 2021 | March 28, 2020 | (Unaudited) | ||||||||||||||||||||||
(Unaudited) | (In thousands, except per share amounts) | |||||||||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||||||||
Net revenues: | ||||||||||||||||||||||||
Systems and components | $ | 13,060 | $ | 13,836 | $ | 11,700 | $ | 15,027 | $ | 35,410 | $ | 51,589 | ||||||||||||
Technology development | 3,181 | 5,004 | 3,093 | 6,538 | 9,437 | 17,659 | ||||||||||||||||||
Total net revenues | 16,241 | 18,840 | 14,793 | 21,565 | 44,847 | 69,248 | ||||||||||||||||||
Cost of net revenues: | ||||||||||||||||||||||||
Systems and components | 9,964 | 7,767 | 7,120 | 8,389 | 25,708 | 29,969 | ||||||||||||||||||
Technology development | 3,223 | 2,917 | 2,146 | 3,876 | 7,450 | 10,403 | ||||||||||||||||||
Total cost of net revenues | 13,187 | 10,684 | 9,266 | 12,265 | 33,158 | 40,372 | ||||||||||||||||||
Gross profit | 3,054 | 8,156 | 5,527 | 9,300 | 11,689 | 28,876 | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Research and development | 3,625 | 3,284 | 3,743 | 3,603 | 11,262 | 10,594 | ||||||||||||||||||
Selling, general and administrative | 5,930 | 5,972 | 5,752 | 5,845 | 17,208 | 17,426 | ||||||||||||||||||
Total operating expenses | 9,555 | 9,256 | 9,495 | 9,448 | 28,470 | 28,020 | ||||||||||||||||||
Loss from operations | (6,501 | ) | (1,100 | ) | ||||||||||||||||||||
Income (loss) from operations | (3,968 | ) | (148 | ) | (16,781 | ) | 856 | |||||||||||||||||
Interest income and other income (expense), net | 29 | 142 | 25 | 8 | 75 | 212 | ||||||||||||||||||
Loss before provision for income taxes | (6,472 | ) | (958 | ) | ||||||||||||||||||||
Income (loss) before provision for income taxes | (3,943 | ) | (140 | ) | (16,706 | ) | 1,068 | |||||||||||||||||
Provision for income taxes | 32 | 266 | 290 | 217 | 157 | 1,125 | ||||||||||||||||||
Net loss | $ | (6,504 | ) | $ | (1,224 | ) | $ | (4,233 | ) | $ | (357 | ) | $ | (16,863 | ) | $ | (57 | ) | ||||||
Net loss per share: | ||||||||||||||||||||||||
Basic and Diluted | $ | (0.27 | ) | $ | (0.05 | ) | $ | (0.17 | ) | $ | (0.02 | ) | $ | (0.69 | ) | $ | (0.00 | ) | ||||||
Weighted average common shares outstanding: | ||||||||||||||||||||||||
Basic and Diluted | 24,033 | 23,483 | 24,522 | 23,771 | 24,265 | 23,605 |
Three Months Ended | ||||||||
April 3, 2021 | March 28, 2020 | |||||||
(Unaudited) | ||||||||
(In thousands) | ||||||||
Net loss | $ | (6,504 | ) | $ | (1,224 | ) | ||
Other comprehensive loss, before tax: | ||||||||
Change in unrealized net gain (loss) on available-for-sale | (20 | ) | 2 | |||||
Foreign currency translation losses | (68 | ) | (95 | ) | ||||
Other comprehensive loss, before tax | (88 | ) | (93 | ) | ||||
Income tax provision related to items in other comprehensive loss | 0 | 0 | ||||||
Other comprehensive loss, net of tax | (88 | ) | (93 | ) | ||||
Comprehensive loss | $ | (6,592 | ) | $ | (1,317 | ) | ||
Three Months Ended | Nine Months Ended | |||||||||||||||
October 2, 2021 | September 26, 2020 | October 2, 2021 | September 26, 2020 | |||||||||||||
(Unaudited) (In thousands) | ||||||||||||||||
Net loss | $ | (4,233 | ) | $ | (357 | ) | $ | (16,863 | ) | $ | (57 | ) | ||||
Other comprehensive income (loss), before tax | ||||||||||||||||
Change in unrealized net gain on available-for-sale | (7 | ) | (24 | ) | (36 | ) | 29 | |||||||||
Foreign currency translation gains (losses) | (7 | ) | 124 | (47 | ) | 49 | ||||||||||
Other comprehensive income (loss), before tax | (14 | ) | 100 | (83 | ) | 78 | ||||||||||
Income tax (expense) benefit related to items in other comprehensive income (loss) | 0 | 0 | 0 | 0 | ||||||||||||
Other comprehensive income (loss), net of tax | (14 | ) | 100 | (83 | ) | 78 | ||||||||||
Comprehensive income (loss) | $ | (4,247 | ) | $ | (257 | ) | $ | (16,946 | ) | $ | 21 | |||||
Nine months ended | ||||||||||||||||
Three Months Ended | October 2, 2021 | September 26, 2020 | ||||||||||||||
April 3, 2021 | March 28, 2020 | �� | ||||||||||||||
(Unaudited) | (Unaudited) (In thousands) | |||||||||||||||
(In thousands) | ||||||||||||||||
Operating activities | ||||||||||||||||
Net loss | $ | (6,504 | ) | $ | (1,224 | ) | $ | (16,863 | ) | $ | (57 | ) | ||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||||||||
Adjustments to reconcile net loss to net cash and cash equivalents provided by (used in) operating activities: | ||||||||||||||||
Depreciation and amortization | 791 | 858 | 2,568 | 2,645 | ||||||||||||
Net amortization (accretion) of investment premiums and discounts | 33 | (19 | ) | 88 | (9 | ) | ||||||||||
Equity-based compensation | 968 | 672 | 2,872 | 2,186 | ||||||||||||
Straight-line rent adjustment and amortization of lease incentives | (115 | ) | (74 | ) | (350 | ) | (224 | ) | ||||||||
Deferred income taxes | (40 | ) | 114 | (36 | ) | 516 | ||||||||||
Changes in operating assets and liabilities | 7,399 | 786 | 11,681 | 2,714 | ||||||||||||
Total adjustments | 9,036 | 2,337 | 16,823 | 7,828 | ||||||||||||
Net cash provided by operating activities | 2,532 | 1,113 | ||||||||||||||
Net cash and cash equivalents provided by (used in) operating activities | (40 | ) | 7,771 | |||||||||||||
Investing activities | ||||||||||||||||
Purchases of investments | (5,962 | ) | (4,242 | ) | (13,214 | ) | (17,071 | ) | ||||||||
Proceeds from sales and maturities of investments | 6,140 | 5,530 | 16,355 | 17,950 | ||||||||||||
Purchases of leasehold improvements and equipment | (243 | ) | (1,145 | ) | (773 | ) | (2,329 | ) | ||||||||
Net cash provided by (used in) investing activities | (65 | ) | 143 | |||||||||||||
Net cash and cash equivalents provided by (used in) investing activities | 2,368 | (1,450 | ) | |||||||||||||
Financing activities | ||||||||||||||||
Proceeds from issuance of common stock | 1,096 | 950 | ||||||||||||||
Net proceeds from issuance of common stock | 2,618 | 1,865 | ||||||||||||||
Common stock repurchases | 0 | (393 | ) | 0 | (393 | ) | ||||||||||
Taxes paid related to net share settlement | (20 | ) | (36 | ) | (545 | ) | (364 | ) | ||||||||
Net cash provided by financing activities | 1,076 | 521 | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (68 | ) | (94 | ) | ||||||||||||
Net cash and cash equivalents provided by financing activities | 2,073 | 1,108 | ||||||||||||||
Effect of exchange rate changes on cash | (47 | ) | 49 | |||||||||||||
Net increase in cash, cash equivalents and restricted cash | 3,475 | 1,683 | 4,354 | 7,478 | ||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 30,128 | 20,554 | 30,128 | 20,554 | ||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 33,603 | $ | 22,237 | $ | 34,482 | $ | 28,032 | ||||||||
Non-cash investing and financing activity | ||||||||||||||||
Additions to right-of-use-assets | $ | 0 | $ | 128 | ||||||||||||
1. | Description of Business and Basis of Presentation |
2. | Revenue |
TFE | Three Months Ended April 3, 2021 | Three Months Ended March 28, 2020 | Three Months Ended October 2, 2021 | Three Months Ended September 26, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | HDD | DCP | PV | ASP | Total | HDD | PV | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HDD | DCP | PV | ASP | Total | HDD | PV | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Systems, upgrades and spare parts | $ | 3,585 | $ | 0— | $ | 111 | $ | 3,850 | $ | 7,546 | $ | 6,361 | $ | 208 | $ | 6,569 | $ | 6,495 | $ | 0 | $ | 61 | $ | 0 | $ | 6,556 | $ | 7,601 | $ | 131 | $ | 7,732 | ||||||||||||||||||||||||||||||||
Field service | 1,636 | 14 | 42 | 0— | 1,692 | 1,393 | 0— | 1,393 | 1,424 | 0 | 18 | 0 | 1,442 | 1,635 | 0 | 1,635 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total TFE net revenues | $ | 5,221 | $ | 14 | $ | 153 | $ | 3,850 | $ | 9,238 | $ | 7,754 | $ | 208 | $ | 7,962 | $ | 7,919 | $ | 0 | $ | 79 | $ | 0 | $ | 7,998 | $ | 9,236 | $ | 131 | $ | 9,367 | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||
Photonics | April 3, 2021 | March 28, 2020 | ||||||
(In thousands) | ||||||||
Products: | ||||||||
Military products | $ | 3,252 | $ | 5,365 | ||||
Commercial products | 128 | 79 | ||||||
Repair and other services | 442 | 430 | ||||||
Total Photonics product net revenues | 3,822 | 5,874 |
Nine Months Ended October 2, 2021 | Nine Months Ended September 26, 2020 | |||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
HDD | DCP | PV | ASP | Total | HDD | PV | Total | |||||||||||||||||||||||||
Systems, upgrades and spare parts | $ | 14,034 | $ | 3 | $ | 219 | $ | 3,850 | $ | 18,106 | $ | 29,189 | $ | 400 | $ | 29,589 | ||||||||||||||||
Field service | 4,425 | 14 | 60 | 0 | 4,499 | 4,334 | 2 | 4,336 | ||||||||||||||||||||||||
Total TFE net revenues | $ | 18,459 | $ | 17 | $ | 279 | $ | 3,850 | $ | 22,605 | $ | 33,523 | $ | 402 | $ | 33,925 | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
Photonics | April 3, 2021 | March 28, 2020 | October 2, 2021 | September 26, 2020 | October 2, 2021 | September 26, 2020 | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Products: | ||||||||||||||||||||||||
Military products | $ | 3,343 | $ | 4,947 | $ | 11,552 | $ | 15,758 | ||||||||||||||||
Commercial products | 100 | 139 | 278 | 257 | ||||||||||||||||||||
Repair and other services | 259 | 574 | 975 | 1,649 | ||||||||||||||||||||
Total Photonics product net revenues | 3,702 | 5,660 | 12,805 | 17,664 | ||||||||||||||||||||
Technology development: | ||||||||||||||||||||||||
Firm Fixed Price (“FFP”) | 1,804 | 4,430 | 1,571 | 5,482 | 4,919 | 15,374 | ||||||||||||||||||
Cost Plus Fixed Fee (“CPFF”) | 1,377 | 574 | 1,522 | 1,056 | 4,518 | 2,285 | ||||||||||||||||||
Time and materials | 0— | 0— | ||||||||||||||||||||||
Total technology development net revenues | 3,181 | 5,004 | 3,093 | 6,538 | 9,437 | 17,659 | ||||||||||||||||||
Total Photonics net revenues | $ | 7,003 | $ | 10,878 | $ | 6,795 | $ | 12,198 | $ | 22,242 | $ | 35,323 | ||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | October 2, 2021 | September 26, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
April 3, 2021 | March 28, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
TFE | Photonics | Total | TFE | Photonics | Total | TFE | Photonics | Total | TFE | Photonics | Total | |||||||||||||||||||||||||||||||||||||
United States | $ | 367 | $ | 6,960 | $ | 7,327 | $ | 519 | $ | 10,856 | $ | 11,375 | $ | 220 | $ | 6,738 | $ | 6,958 | $ | 1,764 | $ | 12,079 | $ | 13,843 | ||||||||||||||||||||||||
Asia | 5,021 | — | 5,021 | 7,443 | 0— | 7,443 | 7,778 | 0 | 7,778 | 7,536 | 0 | 7,536 | ||||||||||||||||||||||||||||||||||||
Europe | 3,850 | 43 | 3,893 | — | 22 | 22 | 0 | 57 | 57 | 67 | 119 | 186 | ||||||||||||||||||||||||||||||||||||
Total net revenues | $ | 9,238 | $ | 7,003 | $ | 16,241 | $ | 7,962 | $ | 10,878 | $ | 18,840 | $ | 7,998 | $ | 6,795 | $ | 14,793 | $ | 9,367 | $ | 12,198 | $ | 21,565 | ||||||||||||||||||||||||
Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||
October 2, 2021 | September 26, 2020 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
TFE | Photonics | Total | TFE | Photonics | Total | |||||||||||||||||||
United States | $ | 2,708 | $ | 22,069 | $ | 24,777 | $ | 2,596 | $ | 35,060 | $ | 37,656 | ||||||||||||
Asia | 16,047 | 0 | 16,047 | 31,262 | 0 | 31,262 | ||||||||||||||||||
Europe | 3,850 | 173 | 4,023 | 67 | 263 | 330 | ||||||||||||||||||
Total net revenues | $ | 22,605 | $ | 22,242 | $ | 44,847 | $ | 33,925 | $ | 35,323 | $ | 69,248 | ||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | October 2, 2021 | September 26, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
April 3, 2021 | March 28, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
TFE | Photonics | Total | TFE | Photonics | Total | TFE | Photonics | Total | TFE | Photonics | Total | |||||||||||||||||||||||||||||||||||||
Products transferred at a point in time | $ | 9,238 | $ | 442 | $ | 9,680 | $ | 7,962 | $ | 430 | $ | 8,392 | $ | 7,998 | $ | 259 | $ | 8,257 | $ | 9,367 | $ | 574 | $ | 9,941 | ||||||||||||||||||||||||
Products and services transferred over time | — | 6,561 | 6,561 | — | 10,448 | 10,448 | 0 | 6,536 | 6,536 | 0 | 11,624 | 11,624 | ||||||||||||||||||||||||||||||||||||
$ | 9,238 | $ | 7,003 | $ | 16,241 | $ | 7,962 | $ | 10,878 | $ | 18,840 | $ | 7,998 | $ | 6,795 | $ | 14,793 | $ | 9,367 | $ | 12,198 | $ | 21,565 | |||||||||||||||||||||||||
Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||
October 2, 2021 | September 26, 2020 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
TFE | Photonics | Total | TFE | Photonics | Total | |||||||||||||||||||
Products transferred at a point in time | $ | 22,605 | $ | 574 | $ | 23,179 | $ | 33,925 | $ | 1,649 | $ | 35,574 | ||||||||||||
Products and services transferred over time | 0 | 21,668 | 21,668 | 0 | 33,674 | 33,674 | ||||||||||||||||||
$ | 22,605 | $ | 22,242 | $ | 44,847 | $ | 33,925 | $ | 35,323 | $ | 69,248 | |||||||||||||
April 3, 2021 | January 2, 2021 | Three Months Change | ||||||||||
(In thousands) | ||||||||||||
TFE: | ||||||||||||
Contract assets: | ||||||||||||
Accounts receivable, unbilled | $ | 0— | $ | 369 | $ | (369 | ) | |||||
Contract liabilities: | ||||||||||||
Deferred revenue | $ | 276 | $ | 482 | $ | (206 | ) | |||||
Customer advances | 42 | 33 | 9 | |||||||||
$ | 318 | $ | 515 | $ | (197 | ) | ||||||
Photonics: | ||||||||||||
Contract assets: | ||||||||||||
Accounts receivable, unbilled | $ | 4,689 | $ | 5,439 | $ | (750 | ) | |||||
Retainage | 130 | 126 | 4 | |||||||||
$ | 4,819 | $ | 5,565 | $ | (746 | ) | ||||||
Contract liabilities: | ||||||||||||
Deferred revenue | $ | 1,126 | $ | 779 | $ | 347 | ||||||
October 2, 2021 | January 2, 2021 | Nine Months Change | ||||||||||
(In thousands) | ||||||||||||
TFE: | ||||||||||||
Contract assets: | ||||||||||||
Accounts receivable, unbilled | $ | 0 | $ | 369 | $ | (369 | ) | |||||
Contract liabilities: | ||||||||||||
Deferred revenue | $ | 197 | $ | 482 | $ | (285 | ) | |||||
Customer advances | 24 | 33 | (9 | ) | ||||||||
$ | 221 | $ | 515 | $ | (294 | ) | ||||||
Photonics: | ||||||||||||
Contract assets: | ||||||||||||
Accounts receivable, unbilled | $ | 1,493 | $ | 5,439 | $ | (3,946 | ) | |||||
Retainage | 87 | 126 | (39 | ) | ||||||||
$ | 1,580 | $ | 5,565 | $ | (3,985 | ) | ||||||
Contract liabilities: | ||||||||||||
Deferred revenue | $ | 550 | $ | 779 | $ | (229 | ) | |||||
3. | Inventories |
October 2, | January 2, | |||||||||||||||
2021 | 2021 | |||||||||||||||
April 3, 2021 | January 2, 2021 | |||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
Raw materials | $ | 10,422 | $ | 9,999 | $ | 11,262 | $ | 9,999 | ||||||||
Work-in-progress | 5,885 | 4,832 | 6,929 | 4,832 | ||||||||||||
Finished goods | 4,194 | 6,858 | 4,262 | 6,858 | ||||||||||||
$ | 20,501 | $ | 21,689 | $ | 22,453 | $ | 21,689 | |||||||||
4. | Equity-Based Compensation |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
Three Months Ended | October 2, 2021 | September 26, 2020 | October 2, 2021 | September 26, 2020 | ||||||||||||||||||||
April 3, 2021 | March 28, 2020 | |||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||
Equity-based compensation by type of award: | ||||||||||||||||||||||||
Stock options | $ | 75 | $ | 215 | $ | 27 | $ | 47 | $ | 159 | $ | 411 | ||||||||||||
RSUs | 543 | 366 | 673 | 495 | 1,872 | 1,311 | ||||||||||||||||||
Employee stock purchase plan | 350 | 91 | ||||||||||||||||||||||
ESPP awards | 185 | 316 | 841 | 464 | ||||||||||||||||||||
Total equity-based compensation | $ | 968 | $ | 672 | $ | 885 | $ | 858 | $ | 2,872 | $ | 2,186 | ||||||||||||
Shares | Weighted-Average Exercise Price | |||||||||||||||
Shares | Weighted-Average Exercise Price | |||||||||||||||
Options outstanding at January 2, 2021 | 1,814,467 | $ | 6.66 | 1,814,467 | $ | 6.66 | ||||||||||
Options granted | 0— | $ | 0— | 0— | $ | 0— | ||||||||||
Options cancelled and forfeited | (50,250 | ) | $ | 8.32 | (211,042 | ) | $ | 7.47 | ||||||||
Options exercised | (28,399 | ) | $ | 6.78 | (73,744 | ) | $ | 5.89 | ||||||||
Options outstanding at April 3, 2021 | 1,735,818 | $ | 6.60 | |||||||||||||
Options outstanding at October 2, 2021 | 1,529,681 | $ | 6.57 | |||||||||||||
Options exercisable at April 3, 2021 | 1,317,348 | $ | 6.71 | |||||||||||||
Options exercisable at October 2, 2021 | 1,317,356 | $ | 6.78 |
Three Months Ended | Nine Months Ended | |||||||||||||||
October 2, 2021 | September 26, 2020 | October 2, 2021 | September 26, 2020 | |||||||||||||
Stock Options: | ||||||||||||||||
Weighted-average fair value of grants per share | $ | 0 | $ | 0 | $ | 0 | $ | 1.82 | ||||||||
Expected volatility | 0 | 0 | 0 | 46.04 | % | |||||||||||
Risk-free interest rate | 0 | 0 | 0 | 0.44 | % | |||||||||||
Expected term of options (in years) | — | — | — | 4.39 | ||||||||||||
Dividend yield | 0 | 0 | 0 | NaN |
Three Months Ended | ||||||||
April 3, 2021 | March 28, 2020 | |||||||
Stock Options: | ||||||||
Weighted-average fair value of grants per share | 0 | $ | 1.82 | |||||
Expected volatility | 0 | 46.06 | % | |||||
Risk-free interest rate | 0 | 0.44 | % | |||||
Expected term of options (in years) | — | 4.39 | ||||||
Dividend yield | 0 | NaN | ||||||
ESPP Purchase Rights: | ||||||||
Weighted-average fair value of grants per share | $ | 2.69 | $ | 1.66 | ||||
Expected volatility | 58.56 | % | 36.69 | % | ||||
Risk-free interest rate | 0.08 | % | 1.56 | % | ||||
Expected term of purchase rights (in years) | 1.0 | 0.5 | ||||||
Dividend yield | NaN | NaN |
Three Months Ended | Nine Months Ended | |||||||||||||||
October 2, 2021 | September 26, 2020 | October 2, 2021 | September 26, 2020 | |||||||||||||
Stock Purchase Rights: | ||||||||||||||||
Weighted-average fair value of grants per share | $ | 2.43 | $ | 2.20 | $ | 2.59 | $ | 2.20 | ||||||||
Expected volatility | 64.94 | % | 51.72 | % | 60.88 | % | 51.49 | % | ||||||||
Risk-free interest rate | 0.07 | % | 0.12 | % | 0.08 | % | 0.14 | % | ||||||||
Expected term of purchase rights (in years) | 0.75 | 1.26 | 0.91 | 1.24 | ||||||||||||
Dividend yield | NaN | NaN | NaN | NaN |
Shares | Weighted-Average Grant Date Fair Value | |||||||||||||||
Shares | Weighted-Average Grant Date Fair Value | |||||||||||||||
Non-vested | 901,634 | $ | 5.30 | 901,634 | $ | 5.30 | ||||||||||
Granted | 9,603 | $ | 6.45 | 590,931 | $ | 6.18 | ||||||||||
Vested | (9,320 | ) | $ | 6.72 | (301,305 | ) | $ | 6.07 | ||||||||
Cancelled and forfeited | (11,051 | ) | $ | 5.36 | (82,529 | ) | $ | 4.66 | ||||||||
Non-vested | 890,866 | $ | 5.29 | |||||||||||||
Non-vested RSUs at October 2, 2021 | 1,108,731 | $ | 5.60 | |||||||||||||
Nine Months Ended | ||||
October 2, 2021 | ||||
Weighted-average fair value of grants per share | $ | 7.65 | ||
Expected volatility | 56.26 | % | ||
Risk-free interest rate | 0.15 | % | ||
Dividend yield | NaN |
Nine Months Ended | ||||
September 26, 2020 | ||||
Weighted-average fair value of grants per share | $ | 3.16 | ||
Expected volatility | 46.7 | % | ||
Risk-free interest rate | 0.25 | % | ||
Dividend yield | NaN |
5. | Warranty |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
Three Months Ended | October 2, 2021 | September 26, 2020 | October 2, 2021 | September 26, 2020 | ||||||||||||||||||||
April 3, 2021 | March 28, 2020 | |||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||
Opening balance | $ | 480 | $ | 1,022 | $ | 572 | $ | 662 | $ | 480 | $ | 1,022 | ||||||||||||
Expenditures incurred under warranties | (199 | ) | (120 | ) | (148 | ) | (89 | ) | (564 | ) | (398 | ) | ||||||||||||
Accruals for product warranties issued during the reporting period | 275 | 25 | 80 | 39 | 553 | 198 | ||||||||||||||||||
Adjustments to previously existing warranty accruals | 34 | (202 | ) | 106 | (57 | ) | 141 | (267 | ) | |||||||||||||||
Closing balance | $ | 590 | $ | 725 | $ | 610 | $ | 555 | $ | 610 | $ | 555 | ||||||||||||
April 3 | January 2, | October 2, 2021 | January 2, 2021 | |||||||||||||
2021 | 2021 | |||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
Other accrued liabilities | $ | 537 | $ | 405 | $ | 542 | $ | 405 | ||||||||
Other long-term liabilities | 53 | 75 | 68 | 75 | ||||||||||||
Total warranty provision | $ | 590 | $ | 480 | $ | 610 | $ | 480 | ||||||||
6. | Guarantees |
7. | Cash, Cash Equivalents and Investments |
April 3, 2021 | ||||||||||||||||
Amortized Cost | Unrealized Holding Gains | Unrealized Holding Losses | Fair Value | |||||||||||||
(In thousands) | ||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Cash | $ | 27,929 | $ | — | $ | — | $ | 27,929 | ||||||||
Money market funds | 4,387 | — | — | 4,387 | ||||||||||||
Certificates of deposit | 500 | — | — | 500 | ||||||||||||
Total cash and cash equivalents | $ | 32,816 | $ | — | $ | — | $ | 32,816 | ||||||||
Short-term investments: | ||||||||||||||||
Certificates of deposit | $ | 6,750 | $ | 1 | $ | — | $ | 6,751 | ||||||||
Corporate bonds and medium-term notes | 4,714 | 3 | — | 4,717 | ||||||||||||
Municipal bonds | 595 | — | — | 595 | ||||||||||||
U.S. treasury and agency securities | 3,998 | 16 | — | 4,014 | ||||||||||||
Total short-term investments | $ | 16,057 | $ | 20 | $ | — | $ | 16,077 | ||||||||
Long-term investments: | ||||||||||||||||
Certificates of deposit | $ | 500 | $ | — | $ | 2 | $ | 498 | ||||||||
Corporate bonds and medium-term notes | 2,012 | — | 1 | 2,011 | ||||||||||||
U.S. treasury and agency securities | 1,409 | 1 | — | 1,410 | ||||||||||||
Total long-term investments | $ | 3,921 | $ | 1 | $ | 3 | $ | 3,919 | ||||||||
Total cash, cash equivalents, and investments | $ | 52,794 | $ | 21 | $ | 3 | $ | 52,812 | ||||||||
October 2, 2021 | ||||||||||||||||||||||||||||||||
January 2, 2021 | Amortized Cost | Unrealized Holding Gains | Unrealized Holding Losses | Fair Value | ||||||||||||||||||||||||||||
Amortized Cost | Unrealized Holding Gains | Unrealized Holding Losses | Fair Value | |||||||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||||||||||||||
Cash | $ | 24,729 | $ | — | $ | — | $ | 24,729 | $ | 28,749 | $ | — | $ | — | $ | 28,749 | ||||||||||||||||
Money market funds | 3,612 | — | — | 3,612 | 4,447 | — | — | 4,447 | ||||||||||||||||||||||||
Certificates of deposit | 1,000 | — | — | 1,000 | ||||||||||||||||||||||||||||
Municipal bonds | 500 | — | — | 500 | ||||||||||||||||||||||||||||
Total cash and cash equivalents | $ | 29,341 | $ | — | $ | — | $ | 29,341 | $ | 33,696 | $ | — | $ | — | $ | 33,696 | ||||||||||||||||
Short-term investments: | ||||||||||||||||||||||||||||||||
Certificates of deposit | $ | 6,450 | $ | 2 | $ | 0 | $ | 6,452 | $ | 6,299 | $ | 3 | $ | — | $ | 6,302 | ||||||||||||||||
Commercial paper | 500 | 0 | 0 | 500 | 400 | — | — | 400 | ||||||||||||||||||||||||
Corporate bonds and medium-term notes | 2,929 | 6 | 0 | 2,935 | 2,919 | 1 | — | 2,920 | ||||||||||||||||||||||||
Municipal bonds | 400 | — | — | 400 | 515 | — | — | 515 | ||||||||||||||||||||||||
U.S. treasury and agency securities | 4,527 | 25 | — | 4,552 | 1,000 | — | — | 1,000 | ||||||||||||||||||||||||
Total short-term investments | $ | 14,806 | $ | 33 | $ | 0 | $ | 14,839 | $ | 11,133 | $ | 4 | $ | — | $ | 11,137 | ||||||||||||||||
Long-term investments: | ||||||||||||||||||||||||||||||||
Asset backed securities | $ | 480 | $ | — | $ | — | $ | 480 | ||||||||||||||||||||||||
Certificates of deposit | $ | 500 | $ | 0 | $ | 0— | $ | 500 | 500 | — | 1 | 499 | ||||||||||||||||||||
Corporate bonds and medium-term notes | 3,474 | 4 | 0 | 3,478 | 2,541 | 1 | 1 | 2,541 | ||||||||||||||||||||||||
Municipal bonds | 145 | — | 1 | 144 | ||||||||||||||||||||||||||||
U.S. treasury and agency securities | 1,409 | 1 | 0 | 1,410 | 2,161 | — | — | 2,161 | ||||||||||||||||||||||||
Total long-term investments | $ | 5,383 | $ | 5 | $ | 0 | $ | 5,388 | $ | 5,827 | $ | 1 | $ | 3 | $ | 5,825 | ||||||||||||||||
Total cash, cash equivalents, and investments | $ | 49,530 | $ | 38 | $ | 0 | $ | 49,568 | $ | 50,656 | $ | 5 | $ | 3 | $ | 50,658 | ||||||||||||||||
January 2, 2021 | ||||||||||||||||
Amortized Cost | Unrealized Holding Gains | Unrealized Holding Losses | Fair Value | |||||||||||||
(In thousands) | ||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Cash | $ | 24,729 | $ | — | $ | — | $ | 24,729 | ||||||||
Money market funds | 3,612 | — | — | 3,612 | ||||||||||||
Certificates of deposit | 1,000 | — | — | 1,000 | ||||||||||||
Total cash and cash equivalents | $ | 29,341 | $ | — | $ | — | $ | 29,341 | ||||||||
Short-term investments: | ||||||||||||||||
Certificates of deposit | $ | 6,450 | $ | 2 | $ | 0 | $ | 6,452 | ||||||||
Commercial paper | 500 | 0 | 0 | 500 | ||||||||||||
Corporate bonds and medium-term notes | 2,929 | 6 | 0 | 2,935 | ||||||||||||
Municipal bonds | 400 | — | — | 400 | ||||||||||||
U.S. treasury and agency securities | 4,527 | 25 | 0 | 4,552 | ||||||||||||
Total short-term investments | $ | 14,806 | $ | 33 | $ | 0 | $ | 14,839 | ||||||||
Long-term investments: | ||||||||||||||||
Certificates of deposit | $ | 500 | $ | 0 | $ | 0 | $ | 500 | ||||||||
Corporate bonds and medium-term notes | 3,474 | 4 | 0 | 3,478 | ||||||||||||
U.S. treasury and agency securities | 1,409 | 1 | 0 | 1,410 | ||||||||||||
Total long-term investments | $ | 5,383 | $ | 5 | $ | 0 | $ | 5,388 | ||||||||
Total cash, cash equivalents, and investments | $ | 49,530 | $ | 38 | $ | 0 | $ | 49,568 | ||||||||
October 2, 2021 | ||||||||||||||||
Amortized Cost | Fair Value | |||||||||||||||
Amortized Cost | Fair Value | |||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
Due in one year or less | $ | 20,944 | $ | 20,964 | $ | 16,080 | $ | 16,084 | ||||||||
Due after one through five years | 3,921 | 3,919 | ||||||||||||||
Due after one through three years | 5,827 | 5,825 | ||||||||||||||
$ | 24,865 | $ | 24,883 | $ | 21,907 | $ | 21,909 | |||||||||
October 2, 2021 | ||||||||||||||||
In Loss Position for Less than 12 Months | In Loss Position for Greater than 12 Months | |||||||||||||||
Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||||||||||
(In thousands) | ||||||||||||||||
Certificates of deposit | $ | 499 | $ | 1 | $ | 0 | $ | 0 | ||||||||
Corporate bonds and medium-term notes | 1,944 | 1 | 0 | 0 | ||||||||||||
Municipal bond | 145 | 1 | 0 | 0 | ||||||||||||
$ | 2,588 | $ | 3 | $ | 0 | $ | 0 | |||||||||
April 3, 2021 | ||||||||||||||||
In Loss Position for Less than 12 Months | In Loss Position for Greater than 12 Months | |||||||||||||||
Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||||||||||
(In thousands) | ||||||||||||||||
Certificates of deposit | $ | 1,498 | $ | 2 | $ | 0 | $ | 0 | ||||||||
Corporate bonds and medium-term notes | 2,686 | 1 | 0 | 0 | ||||||||||||
$ | 4,184 | $ | 3 | $ | 0 | $ | 0 | |||||||||
Fair Value Measurements at October 2, 2021 | ||||||||||||||||||||||||
Fair Value Measurements at April 3, 2021 | Total | Level 1 | Level 2 | |||||||||||||||||||||
Total | Level 1 | Level 2 | ||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||
Recurring fair value measurements: | ||||||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||
Money market funds | $ | 4,387 | $ | 4,387 | $ | — | $ | 4,447 | $ | 4,447 | $ | — | ||||||||||||
U.S. treasury and agency securities | 5,424 | 5,424 | — | 3,161 | 3,161 | — | ||||||||||||||||||
Asset backed securities | 480 | — | 480 | |||||||||||||||||||||
Certificates of deposit | 7,749 | — | 7,749 | 6,801 | — | 6,801 | ||||||||||||||||||
Commercial paper | 400 | — | 400 | |||||||||||||||||||||
Corporate bonds and medium-term notes | 6,728 | — | 6,728 | 5,461 | — | 5,461 | ||||||||||||||||||
Municipal bonds | 595 | — | 595 | 1,159 | — | 1,159 | ||||||||||||||||||
Total recurring fair value measurements | $ | 24,883 | $ | 9,811 | $ | 15,072 | $ | 21,909 | $ | 7,608 | $ | 14,301 | ||||||||||||
8. | Derivative Instruments |
Notional Amounts | Derivative Liabilities | Notional Amounts | Derivative Liabilities | |||||||||||||||||||||||||||||||||||||||||||||
Derivative Instrument | April 3, 2021 | January 2, 2021 | April 3, 2021 | January 2, 2021 | October 2 2021 | January 2, 2021 | October 2, 2021 | January 2, 2021 | ||||||||||||||||||||||||||||||||||||||||
Balance Sheet Line | Fair Value | Balance Sheet Line | Fair Value | |||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | Balance Sheet Line | Fair Value | Balance Sheet Line | Fair Value | ||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||
Undesignated Hedges: | ||||||||||||||||||||||||||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 594 | 983 | * | $ | 1 | * | $ | 3 | $ | 811 | $ | 983 | (a | ) | $ | 2 | (a | ) | $ | 3 | |||||||||||||||||||||||||||
Total Hedges | $ | 594 | 983 | $ | 1 | $ | 3 | $ | 811 | $ | 983 | $ | 2 | $ | 3 | |||||||||||||||||||||||||||||||||
Other accrued liabilities |
9. | Equity |
Three months ended October 2, 2021 | ||||||||||||||||||||
Common Stock and Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income | Accumulated Deficit | Total Stockholders’ Equity | ||||||||||||||||
Balance at July 3, 2021 | $ | 196,088 | $ | (29,551 | ) | $ | 571 | $ | (75,360 | ) | $ | 91,748 | ||||||||
Common stock issued under employee plans | 1,182 | — | — | — | 1,182 | |||||||||||||||
Shares withheld for net share settlement of RSUs | (13 | ) | — | — | — | (13 | ) | |||||||||||||
Equity-based compensation expense | 885 | — | — | — | 885 | |||||||||||||||
Net loss | — | — | — | (4,233 | ) | (4,233 | ) | |||||||||||||
Other comprehensive loss | — | — | (14 | ) | — | (14 | ) | |||||||||||||
Balance at October 2, 2021 | $ | 198,142 | $ | (29,551 | ) | $ | 557 | $ | (79,593 | ) | $ | 89,555 | ||||||||
Nine months ended October 2, 2021 | ||||||||||||||||||||
Common Stock and Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income | Accumulated Deficit | Total Stockholders’ Equity | ||||||||||||||||
Balance at January 2, 2021 | $ | 193,197 | $ | (29,551 | ) | $ | 640 | $ | (62,730 | ) | $ | 101,556 | ||||||||
Common stock issued under employee plans | 2,618 | — | — | — | 2,618 | |||||||||||||||
Shares withheld for net share settlement of RSUs | (545 | ) | — | — | — | (545 | ) | |||||||||||||
Equity-based compensation expense | 2,872 | — | — | — | 2,872 | |||||||||||||||
Net loss | — | — | — | (16,863 | ) | (16,863 | ) | |||||||||||||
Other comprehensive loss | — | — | (83 | ) | — | (83 | ) | |||||||||||||
Balance at October 2, 2021 | $ | 198,142 | $ | (29,551 | ) | $ | 557 | $ | (79,593 | ) | $ | 89,555 | ||||||||
Three months ended September 26, 2020 | ||||||||||||||||||||
Common Stock and Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income | Accumulated Deficit | Total Stockholders’ Equity | ||||||||||||||||
Balance at June 27, 2020 | $ | 190,290 | $ | (29,551 | ) | $ | 402 | $ | (63,486 | ) | $ | 97,655 | ||||||||
Common stock issued under employee plans | 871 | — | — | — | 871 | |||||||||||||||
Shares withheld for net share settlement of RSUs | (19 | ) | — | — | — | (19 | ) | |||||||||||||
Equity-based compensation expense | 858 | — | — | — | 858 | |||||||||||||||
Net loss | — | — | — | (357 | ) | (357 | ) | |||||||||||||
Other comprehensive income | — | — | 100 | — | 100 | |||||||||||||||
Balance at September 26, 2020 | $ | 192,000 | $ | (29,551 | ) | $ | 502 | $ | (63,843 | ) | $ | 99,108 | ||||||||
Nine months ended September 26, 2020 | ||||||||||||||||||||
Common Stock and Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income | Accumulated Deficit | Total Stockholders’ Equity | ||||||||||||||||
Balance at December 28, 2019 | $ | 188,313 | $ | (29,158 | ) | $ | 424 | $ | (63,786 | ) | $ | 95,793 | ||||||||
Common stock issued under employee plans | 1,865 | — | — | — | 1,865 | |||||||||||||||
Shares withheld for net share settlement of RSUs | (364 | ) | — | — | — | (364 | ) | |||||||||||||
Equity-based compensation expense | 2,186 | — | — | — | 2,186 | |||||||||||||||
Net loss | — | — | — | (57 | ) | (57 | ) | |||||||||||||
Other comprehensive income | — | — | 78 | — | 78 | |||||||||||||||
Common stock repurchases | — | (393 | ) | — | — | (393 | ) | |||||||||||||
Balance at September 26, 2020 | $ | 192,000 | $ | (29,551 | ) | $ | 502 | $ | (63,843 | ) | $ | 99,108 | ||||||||
Three Months Ended April 3, 2021 | ||||||||||||||||||||
Common Stock and Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income | Accumulated Deficit | Total Stockholders’ Equity | ||||||||||||||||
Balance at January 2, 2021 | $ | 193,197 | $ | (29,551 | ) | $ | 640 | $ | (62,730 | ) | $ | 101,556 | ||||||||
Common stock issued under employee plans | 1,223 | — | — | — | 1,223 | |||||||||||||||
Equity-based compensation expense | 968 | — | — | — | 968 | |||||||||||||||
Net loss | — | — | — | (6,504 | ) | (6,504 | ) | |||||||||||||
Other comprehensive loss | — | — | (88 | ) | — | (88 | ) | |||||||||||||
Balance at April 3, 2021 | $ | 195,388 | $ | (29,551 | ) | $ | 552 | $ | (69,234 | ) | $ | 97,155 | ||||||||
Three Months Ended March 28, 2020 | ||||||||||||||||||||
Common Stock and Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income | Accumulated Deficit | Total Stockholders’ Equity | ||||||||||||||||
Balance at December 29, 2018 | $ | 188,313 | $ | (29,158 | ) | $ | 424 | $ | (63,786 | ) | $ | 95,793 | ||||||||
Common stock issued under employee plans | 914 | — | — | — | 914 | |||||||||||||||
Equity-based compensation expense | 672 | — | — | — | 672 | |||||||||||||||
Net loss | — | — | — | (1,224 | ) | (1,224 | ) | |||||||||||||
Other comprehensive loss | — | — | (93 | ) | — | (93 | ) | |||||||||||||
Common stock repurchases | — | (393 | ) | — | — | (393 | ) | |||||||||||||
Balance at March 28, 2020 | $ | 189,899 | $ | (29,551 | ) | $ | 331 | $ | (65,010 | ) | $ | 95,669 | ||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | October 2, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
April 3, 2021 | March 28, 2020 | Foreign currency | Unrealized holding gains (losses) on available-for-sale investments | Total | Foreign currency | Unrealized holding gains (losses) on available-for-sale investments | Total | |||||||||||||||||||||||||||||||||||||||||
Foreign currency | Unrealized holding gains (losses) on available- for-sale investments | Total | Foreign currency | Unrealized holding gains (losses) on available- for-sale investments | Total | |||||||||||||||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 602 | $ | 38 | $ | 640 | $ | 381 | $ | 43 | $ | 424 | $ | 562 | $ | 9 | $ | 571 | $ | 602 | $ | 38 | $ | 640 | ||||||||||||||||||||||||
Other comprehensive income (loss) before reclassification | (68 | ) | (20 | ) | (88 | ) | (95 | ) | 2 | (93 | ) | |||||||||||||||||||||||||||||||||||||
Other comprehensive loss before reclassification | (7 | ) | (7 | ) | (14 | ) | (47 | ) | (36 | ) | (83 | ) | ||||||||||||||||||||||||||||||||||||
Amounts reclassified from other comprehensive income (loss) | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Net current-period other comprehensive income (loss) | (68 | ) | (20 | ) | (88 | ) | (95 | ) | 2 | (93 | ) | |||||||||||||||||||||||||||||||||||||
Net current-period other comprehensive loss | (7 | ) | (7 | ) | (14 | ) | (47 | ) | (36 | ) | (83 | ) | ||||||||||||||||||||||||||||||||||||
Ending balance | $ | 534 | $ | 18 | $ | 552 | $ | 286 | $ | 45 | $ | 331 | $ | 555 | $ | 2 | $ | 557 | $ | 555 | $ | 2 | $ | 557 | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 26, 2020 | ||||||||||||||||||||||||
Foreign currency | Unrealized holding gains (losses) on available-for-sale investments | Total | Foreign currency | Unrealized holding gains on available-for-sale investments | Total | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Beginning balance | $ | 306 | $ | 96 | $ | 402 | $ | 381 | $ | 43 | $ | 424 | ||||||||||||
Other comprehensive income (loss) before reclassification | 124 | (24 | ) | 100 | 49 | 29 | 78 | |||||||||||||||||
Amounts reclassified from other comprehensive income (loss) | — | — | — | — | — | — | ||||||||||||||||||
Net current-period other comprehensive income | 124 | (24 | ) | 100 | 49 | 29 | 78 | |||||||||||||||||
Ending balance | $ | 430 | $ | 72 | $ | 502 | $ | 430 | $ | 72 | $ | 502 | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
Three Months Ended | October 2, 2021 | September 26, 2020 | October 2, 2021 | September 26, 2020 | ||||||||||||||||||||
April 3, 2021 | March 28, 2020 | |||||||||||||||||||||||
(In thousands, except per share amounts) | (In thousands, except per share amounts) | |||||||||||||||||||||||
Shares of common stock repurchased | 0 | 98 | 0 | 0 | 0 | 98 | ||||||||||||||||||
Cost of stock repurchased | $ | — | $ | 393 | $ | 0 | $ | 0 | $ | 0 | $ | 393 | ||||||||||||
Average price paid per share share | $ | 0 | $ | 3.97 | ||||||||||||||||||||
Average price paid per share | $ | 0 | $ | 0 | $ | 0 | $ | 3.97 |
10. | Net Loss Per Share |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
Three Months Ended | October 2, 2021 | September 26, 2020 | October 2, 2021 | September 26, 2020 | ||||||||||||||||||||
April 3, 2021 | March 28, 2020 | |||||||||||||||||||||||
(In thousands) | (In thousands, except per share amounts) | |||||||||||||||||||||||
Net loss | $ | (6,504 | ) | $ | (1,224 | ) | $ | (4,233 | ) | $ | (357 | ) | $ | (16,863 | ) | $ | (57 | ) | ||||||
Weighted-average shares – basic | 24,033 | 23,483 | 24,522 | 23,771 | 24,265 | 23,605 | ||||||||||||||||||
Effect of dilutive potential common shares | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Weighted-average shares – diluted | 24,033 | 23,483 | 24,522 | 23,771 | 24,265 | 23,605 | ||||||||||||||||||
Net loss per share – basic and diluted | $ | (0.27 | ) | $ | (0.05 | ) | ||||||||||||||||||
Net loss per share – basic | $ | (0.17 | ) | $ | (0.02 | ) | $ | (0.69 | ) | $ | (0.00 | ) | ||||||||||||
Net loss per share –diluted | $ | (0.17 | ) | $ | (0.02 | ) | $ | (0.69 | ) | $ | (0.00 | ) | ||||||||||||
11. | Segment Reporting |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
Three Months Ended | October 2, 2021 | September 26, 2020 | October 2, 2021 | September 26, 2020 | ||||||||||||||||||||
April 3, 2021 | March 28, 2020 | |||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||
TFE | $ | 9,238 | $ | 7,962 | $ | 7,998 | $ | 9,367 | $ | 22,605 | $ | 33,925 | ||||||||||||
Photonics | 7,003 | 10,878 | 6,795 | 12,198 | 22,242 | 35,323 | ||||||||||||||||||
Total segment net revenues | $ | 16,241 | $ | 18,840 | $ | 14,793 | $ | 21,565 | $ | 44,847 | $ | 69,248 | ||||||||||||
Three Months Ended | ||||||||
April 3, 2021 | March 28, 2020 | |||||||
(In thousands) | ||||||||
TFE | $ | (4,002 | ) | $ | (2,531 | ) | ||
Photonics | (1,146 | ) | 2,912 | |||||
Total segment operating income (loss) | (5,148 | ) | 381 | |||||
Unallocated costs | (1,353 | ) | (1,481 | ) | ||||
Loss from operations | (6,501 | ) | (1,100 | ) | ||||
Interest income and other income (expense), net | 29 | 142 | ||||||
Loss before provision for income taxes | $ | (6,472 | ) | $ | (958 | ) | ||
Three Months Ended | Nine Months Ended | |||||||||||||||
October 2, 2021 | September 26, 2020 | October 2, 2021 | September 26, 2020 | |||||||||||||
(In thousands) | ||||||||||||||||
TFE | $ | (1,841 | ) | $ | (1,661 | ) | $ | (10,148 | ) | $ | (4,366 | ) | ||||
Photonics | (341 | ) | 3,032 | (1,742 | ) | 9,480 | ||||||||||
Total segment operating income (loss) | (2,182 | ) | 1,371 | (11,890 | ) | 5,114 | ||||||||||
Unallocated costs | (1,786 | ) | (1,519 | ) | (4,891 | ) | (4,258 | ) | ||||||||
Income (loss) from operations | (3,968 | ) | (148 | ) | (16,781 | ) | 856 | |||||||||
Interest income and other income (expense), net | 25 | 8 | 75 | 212 | ||||||||||||
Income (loss) before provision for income taxes | $ | (3,943 | ) | $ | (140 | ) | $ | (16,706 | ) | $ | 1,068 | |||||
October 2, 2021 | January 2, 2021 | |||||||||||||||
April 3, 2021 | January 2, 2021 | (In thousands) | ||||||||||||||
(In thousands) | ||||||||||||||||
TFE | $ | 33,042 | $ | 44,335 | $ | 33,411 | $ | 44,335 | ||||||||
Photonics | 21,474 | 22,923 | 16,810 | 22,923 | ||||||||||||
Total segment assets | 54,516 | 67,258 | 50,221 | 67,258 | ||||||||||||
Cash, cash equivalents and investments | 52,812 | 49,568 | 50,658 | 49,568 | ||||||||||||
Restricted cash | 787 | 787 | 786 | 787 | ||||||||||||
Deferred income taxes | 5,375 | 5,335 | 5,371 | 5,335 | ||||||||||||
Other current assets | 1,194 | 1,093 | 907 | 1,093 | ||||||||||||
Common property, plant and equipment | 1,355 | 1,443 | 1,100 | 1,443 | ||||||||||||
Common operating lease right-of-use | 1,493 | 1,603 | 1,267 | 1,603 | ||||||||||||
Other assets | 109 | 151 | 183 | 151 | ||||||||||||
Consolidated total assets | $ | 117,641 | $ | 127,238 | $ | 110,493 | $ | 127,238 | ||||||||
12. | Income Taxes |
13. | Restructuring Charges |
Ended
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
14. |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Three months ended | Nine months ended | |||||||||||||||||||||||||||||||||||
October 2, 2021 | September 26, 2020 | Change over prior period | October 2, 2021 | September 26, 2020 | Change over prior period | |||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||||||
April 3, 2021 | March 28, 2020 | Change over prior period | (In thousands, except percentages and per share amounts) | |||||||||||||||||||||||||||||||||
(In thousands, except percentages and per share amounts) | ||||||||||||||||||||||||||||||||||||
Net revenues | $ | 16,241 | $ | 18,840 | $ | (2,599 | ) | $ | 14,793 | $ | 21,565 | $ | (6,772 | ) | $ | 44,847 | $ | 69,248 | $ | (24,401 | ) | |||||||||||||||
Gross profit | $ | 3,054 | $ | 8,156 | $ | (5,102 | ) | $ | 5,527 | $ | 9,300 | $ | (3,773 | ) | $ | 11,689 | $ | 28,876 | $ | (17,187 | ) | |||||||||||||||
Gross margin percent | 18.8 | % | 43.3 | % | (24.5) points | 37.4 | % | 43.1 | % | (5.7) points | 26.1 | % | 41.7 | % | (15.6)points | |||||||||||||||||||||
Loss from operations | $ | (6,501 | ) | $ | (1,100 | ) | $ | (5,401 | ) | |||||||||||||||||||||||||||
Income (loss) from operations | $ | (3,968 | ) | $ | (148 | ) | $ | (3,820 | ) | $ | (16,781 | ) | $ | 856 | $ | (17,637 | ) | |||||||||||||||||||
Net loss | $ | (6,504 | ) | $ | (1,224 | ) | $ | (5,280 | ) | $ | (4,233 | ) | $ | (357 | ) | $ | (3,876 | ) | $ | (16,863 | ) | $ | (57 | ) | �� | $ | (16,806 | ) | ||||||||
Net loss per diluted share | $ | (0.27 | ) | $ | (0.05 | ) | $ | (0.22 | ) | $ | (0.17 | ) | $ | (0.02 | ) | $ | (0.15 | ) | $ | (0.69 | ) | $ | (0.00 | ) | $ | (0.69 | ) |
Three months ended | Nine months ended | |||||||||||||||||||||||||||||||||||
October 2, 2021 | September 26, 2020 | Change over prior period | October 2, 2021 | September 26, 2020 | Change over prior period | |||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||||||
April 3, 2021 | March 28, 2020 | Change over prior period | (In thousands) | |||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||
TFE | $ | 9,238 | $ | 7,962 | $ | 1,276 | $ | 7,998 | $ | 9,367 | $ | (1,369 | ) | $ | 22,605 | $ | 33,925 | $ | (11,320 | ) | ||||||||||||||||
Photonics | ||||||||||||||||||||||||||||||||||||
Photonics: | ||||||||||||||||||||||||||||||||||||
Contract R&D | 3,093 | 6,538 | (3,445 | ) | 9,437 | 17,659 | (8,222 | ) | ||||||||||||||||||||||||||||
Products | 3,822 | 5,874 | (2,052 | ) | 3,702 | 5,660 | (1,958 | ) | 12,805 | 17,664 | (4,859 | ) | ||||||||||||||||||||||||
Contract R&D | 3,181 | 5,004 | (1,823 | ) | ||||||||||||||||||||||||||||||||
7,003 | 10,878 | (3,875 | ) | 6,795 | 12,198 | (5,403 | ) | 22,242 | 35,323 | (13,081 | ) | |||||||||||||||||||||||||
Total net revenues | $ | 16,241 | $ | 18,840 | $ | (2,599 | ) | $ | 14,793 | $ | 21,565 | $ | (6,772 | ) | $ | 44,847 | $ | 69,248 | $ | (24,401 | ) | |||||||||||||||
October 2, 2021 | January 2, 2021 | September 26, 2020 | ||||||||||||||||||||||
April 3, 2021 | January 2, 2021 | March 28, 2020 | (In thousands) | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
TFE | $ | 4,221 | $ | 5,623 | $ | 22,386 | $ | 16,925 | $ | 5,623 | $ | 18,092 | ||||||||||||
Photonics | 38,917 | 41,317 | 64,787 | 27,942 | 41,317 | 45,159 | ||||||||||||||||||
Total backlog | $ | 43,138 | $ | 46,940 | $ | 87,173 | $ | 44,867 | $ | 46,940 | $ | 63,251 | ||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
October 2, 2021 | September 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
April 3, 2021 | March 28, 2020 | (In thousands) | ||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | TFE | Photonics | Total | TFE | Photonics | Total | ||||||||||||||||||||||||||||||||||||||||||
TFE | Photonics | Total | TFE | Photonics | Total | |||||||||||||||||||||||||||||||||||||||||||
United States | $ | 367 | $ | 6,960 | $ | 7,327 | $ | 519 | $ | 10,856 | $ | 11,375 | $ | 220 | $ | 6,738 | $ | 6,958 | $ | 1,764 | $ | 12,079 | $ | 13,843 | ||||||||||||||||||||||||
Asia | 5,021 | — | 5,021 | 7,443 | — | 7,443 | 7,778 | — | 7,778 | 7,536 | — | 7,536 | ||||||||||||||||||||||||||||||||||||
Europe | 3,850 | 43 | 3,893 | — | 22 | 22 | — | 57 | 57 | 67 | 119 | 186 | ||||||||||||||||||||||||||||||||||||
Total net revenues | $ | 9,238 | $ | 7,003 | $ | 16,241 | $ | 7,962 | $ | 10,878 | $ | 18,840 | $ | 7,998 | $ | 6,795 | $ | 14,793 | $ | 9,367 | $ | 12,198 | $ | 21,565 | ||||||||||||||||||||||||
Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||
October 2, 2021 | September 26, 2020 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
TFE | Photonics | Total | TFE | Photonics | Total | |||||||||||||||||||
United States | $ | 2,708 | $ | 22,069 | $ | 24,777 | $ | 2,596 | $ | 35,060 | $ | 37,656 | ||||||||||||
Asia | 16,047 | — | 16,047 | 31,262 | — | 31,262 | ||||||||||||||||||
Europe | 3,850 | 173 | 4,023 | 67 | 263 | 330 | ||||||||||||||||||
Total net revenues | $ | 22,605 | $ | 22,242 | $ | 44,847 | $ | 33,925 | $ | 35,323 | $ | 69,248 | ||||||||||||
Three months ended | Nine months ended | |||||||||||||||||||||||||||||||||||
Three Months Ended | October 2, 2021 | September 26, 2020 | Change over prior period | October 2, 2021 | September 26, 2020 | Change over prior period | ||||||||||||||||||||||||||||||
April 3, 2021 | March 28, 2020 | Change over prior period | ||||||||||||||||||||||||||||||||||
(In thousands, except percentages) | (In thousands, except percentages) | |||||||||||||||||||||||||||||||||||
TFE gross profit | $ | 2,134 | $ | 3,500 | $ | (1,366 | ) | $ | 3,350 | $ | 4,075 | $ | (725 | ) | $ | 6,491 | $ | 13,622 | $ | (7,131 | ) | |||||||||||||||
% of TFE net revenues | 23.1 | % | 44.0 | % | 41.9 | % | 43.5 | % | 28.7 | % | 40.2 | % | ||||||||||||||||||||||||
Photonics gross profit | $ | 920 | $ | 4,656 | $ | (3,736 | ) | $ | 2,177 | $ | 5,225 | $ | (3,048 | ) | $ | 5,198 | $ | 15,254 | $ | (10,056 | ) | |||||||||||||||
% of Photonics net revenues | 13.1 | % | 42.8 | % | 32.0 | % | 42.8 | % | 23.4 | % | 43.2 | % | ||||||||||||||||||||||||
Total gross profit | $ | 3,054 | $ | 8,156 | $ | (5,102 | ) | $ | 5,527 | $ | 9,300 | $ | (3,773 | ) | $ | 11,689 | $ | 28,876 | $ | (17,187 | ) | |||||||||||||||
% of net revenues | 18.8 | % | 43.3 | % | 37.4 | % | 43.1 | % | 26.1 | % | 41.7 | % |
Three Months Ended | ||||||||||||
April 3, 2021 | March 28, 2020 | Change over prior period | ||||||||||
(In thousands) | ||||||||||||
Research and development expense | $ | 3,625 | $ | 3,284 | $ | 341 |
Three months ended | Nine months ended | |||||||||||||||||||||||
October 2, 2021 | September 26, 2020 | Change over prior period | October 2, 2021 | September 26, 2020 | Change over prior period | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Research and development expense | $ | 3,743 | $ | 3,603 | $ | 140 | $ | 11,262 | $ | 10,594 | $ | 668 |
Three Months Ended | ||||||||||||
April 3, 2021 | March 28, 2020 | Change over prior period | ||||||||||
(In thousands) | ||||||||||||
Selling, general and administrative expense | $ | 5,930 | $ | 5,972 | $ | (42 | ) |
Three months ended | Nine months ended | |||||||||||||||||||||||
October 2, 2021 | September 26, 2020 | Change over prior period | October 2, 2021 | September 26, 2020 | Change over prior period | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Selling, general and administrative expense | $ | 5,752 | $ | 5,845 | $ | (93 | ) | $ | 17,208 | $ | 17,426 | $ | (218 | ) |
Three Months Ended | ||||||||||||
April 3, 2021 | March 28, 2020 | Change over prior period | ||||||||||
(In thousands) | ||||||||||||
Interest income and other income (expense), net | $ | 29 | $ | 142 | $ | (113 | ) |
Three months ended | Nine months ended | |||||||||||||||||||||||
October 2, 2021 | September 26, 2020 | Change over prior period | October 2, 2021 | September 26, 2020 | Change over prior period | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Interest income and other income (expense), net | $ | 25 | $ | 8 | $ | 17 | $ | 75 | $ | 212 | $ | (137 | ) |
Three Months Ended | ||||||||||||
April 3, 2021 | March 28, 2020 | Change over prior period | ||||||||||
(In thousands) | ||||||||||||
Income tax provision | $ | 32 | $ | 266 | $ | (234 | ) |
Three months ended | Nine months ended | |||||||||||||||||||||||
October 2, 2021 | September 26, 2020 | Change over prior period | October 2, 2021 | September 26, 2020 | Change over prior period | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Provision for income taxes | $ | 290 | $ | 217 | $ | 73 | $ | 157 | $ | 1,125 | $ | (968 | ) |
October 2, 2021 | January 2, 2021 | |||||||||||||||
April 3, 2021 | January 2, 2021 | |||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
Cash and cash equivalents | $ | 32,816 | $ | 29,341 | $ | 33,696 | $ | 29,341 | ||||||||
Restricted cash | 787 | 787 | 786 | 787 | ||||||||||||
Short-term investments | 16,077 | 14,839 | 11,137 | 14,839 | ||||||||||||
Long-term investments | 3,919 | 5,388 | 5,825 | 5,388 | ||||||||||||
Total cash, cash equivalents, restricted cash and investments | $ | 53,599 | $ | 50,355 | $ | 51,444 | $ | 50,355 | ||||||||
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Item 3. | Defaults upon Senior Securities |
Item 4. | Mine Safety Disclosures |
Item 5. | Other Information |
Item 6. | Exhibits |
Exhibit Number | Description | |
31.1 | Certification of President and Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
31.2 | Certification of Executive Vice President, Finance and Administration, Chief Financial Officer and Treasurer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
32.1 | Certifications Pursuant to U.S.C. 1350 Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.* | |
10-Q for the quarter ended October 2, 2021, formatted in | ||
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
* | The certification attached as Exhibit 32.1 is deemed “furnished” and not deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 and is not to be incorporated by reference into any filing of Intevac, Inc. under the Securities Exchange Act of 1933 or the Securities Exchange Act of 1934, whether made before or after the date hereof, irrespective of any general incorporation by reference language contained in any such filing, except to the extent that the registrant specifically incorporates it by reference. |
INTEVAC, INC. | ||||||||
Date: | ||||||||
By: | /s/ WENDELL | |||||||
Wendell | ||||||||
President, Chief Executive Officer and Director | ||||||||
(Principal Executive Officer) | ||||||||
Date: | ||||||||
By: | /s/ JAMES MONIZ | |||||||
James Moniz | ||||||||
Executive Vice President, Finance and Administration, | ||||||||
Chief Financial Officer, Secretary and Treasurer | ||||||||
(Principal Financial and Accounting Officer) |