☒ | 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. | |||||||||||
3 | |||||||||||
4 | |||||||||||
5 | |||||||||||
6 | |||||||||||
7 | |||||||||||
Item 2. | |||||||||||
Item 3. | 27 | ||||||||||
Item 4. | 27 | ||||||||||
Item 1. | 28 | ||||||||||
Item | 28 | ||||||||||
Item 2. | 34 | ||||||||||
Item 3. | 34 | ||||||||||
Item 4. | 34 | ||||||||||
Item 5. | 34 | ||||||||||
Item 6. | 35 | ||||||||||
36 | |||||||||||
Item 1. | Financial Statements |
April 2, 2022 | January 1, 2022 | |||||||||||||||
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 | $ | 98,034 | $ | 102,728 | ||||||||
Short-term investments | 16,077 | 14,839 | 8,941 | 10,221 | ||||||||||||
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 April 2, 2022 and January 1, 2022 | 17,054 | 14,261 | ||||||||||||||
Inventories | 20,501 | 21,689 | 8,908 | 5,791 | ||||||||||||
Prepaid expenses and other current assets | 1,789 | 1,893 | 1,778 | 1,827 | ||||||||||||
Total current assets | 89,412 | 96,408 | 134,715 | 134,828 | ||||||||||||
Long-term investments | 3,919 | 5,388 | 9,407 | 7,427 | ||||||||||||
Restricted cash | 787 | 787 | 786 | 786 | ||||||||||||
Property, plant and equipment, net | 10,456 | 11,004 | 3,372 | 4,759 | ||||||||||||
Operating lease right-of-use-assets | 7,582 | 8,165 | 3,966 | 4,520 | ||||||||||||
Deferred income taxes and other long-term assets | 5,485 | 5,486 | 5,406 | 5,449 | ||||||||||||
Total assets | $ | 117,641 | $ | 127,238 | $ | 157,652 | $ | 157,769 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | LIABILITIES AND STOCKHOLDERS’ EQUITY | LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||
Current liabilities: | ||||||||||||||||
Current operating lease liabilities | $ | 2,913 | $ | 2,853 | $ | 3,188 | $ | 3,119 | ||||||||
Accounts payable | 2,765 | 4,259 | 3,915 | 5,320 | ||||||||||||
Accrued payroll and related liabilities | 5,150 | 7,679 | 3,319 | 5,505 | ||||||||||||
Other accrued liabilities | 3,136 | 3,598 | 2,971 | 3,665 | ||||||||||||
Customer advances | 42 | 33 | 15,320 | 2,107 | ||||||||||||
Total current liabilities | 14,006 | 18,422 | 28,713 | 19,716 | ||||||||||||
Noncurrent liabilities: | Noncurrent liabilities: | |||||||||||||||
Noncurrent operating lease liabilities | 6,045 | 6,803 | 2,854 | 3,675 | ||||||||||||
Other long-term liabilities | 435 | 457 | 270 | 363 | ||||||||||||
Total noncurrent liabilities | 6,480 | 7,260 | 3,124 | 4,038 | ||||||||||||
Stockholders’ equity: | Stockholders’ equity: | |||||||||||||||
Common stock, $0.001 par value | 24 | 24 | 25 | 25 | ||||||||||||
Additional paid-in capital | 195,364 | 193,173 | 198,935 | 199,073 | ||||||||||||
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 April 2, 2022 and at January 1, 2022 | (29,551 | ) | (29,551 | ) | ||||||||||||
Accumulated other comprehensive income | 552 | 640 | 371 | 578 | ||||||||||||
Accumulated deficit | (69,234 | ) | (62,730 | ) | (43,965 | ) | (36,110 | ) | ||||||||
Total stockholders’ equity | 97,155 | 101,556 | 125,815 | 134,015 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 117,641 | $ | 127,238 | $ | 157,652 | $ | 157,769 | ||||||||
Three Months Ended | Three Months Ended | |||||||||||||||
April 3, 2021 | March 28, 2020 | April 2, 2022 | April 3, 2021 | |||||||||||||
(Unaudited) | ||||||||||||||||
(In thousands, except per share amounts) | (Unaudited) | |||||||||||||||
Net revenues: | ||||||||||||||||
Systems and components | $ | 13,060 | $ | 13,836 | ||||||||||||
Technology development | 3,181 | 5,004 | ||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Total net revenues | 16,241 | 18,840 | ||||||||||||||
Cost of net revenues: | ||||||||||||||||
Systems and components | 9,964 | 7,767 | ||||||||||||||
Technology development | 3,223 | 2,917 | ||||||||||||||
Total cost of net revenues | 13,187 | 10,684 | ||||||||||||||
Net revenues | $ | 4,445 | $ | 9,238 | ||||||||||||
Cost of net revenues | 3,722 | 7,104 | ||||||||||||||
Gross profit | 3,054 | 8,156 | 723 | 2,134 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 3,625 | 3,284 | 4,160 | 3,365 | ||||||||||||
Selling, general and administrative | 5,930 | 5,972 | 4,249 | 4,334 | ||||||||||||
Total operating expenses | 9,555 | 9,256 | 8,409 | 7,699 | ||||||||||||
Loss from operations | (6,501 | ) | (1,100 | ) | (7,686 | ) | (5,565 | ) | ||||||||
Interest income and other income (expense), net | 29 | 142 | (8 | ) | 29 | |||||||||||
Loss before provision for income taxes | (6,472 | ) | (958 | ) | ||||||||||||
Loss from continuing operations before provision for income taxes | (7,694 | ) | (5,536 | ) | ||||||||||||
Provision for income taxes | 32 | 266 | 26 | 32 | ||||||||||||
Net loss from continuing operations | (7,720 | ) | (5,568 | ) | ||||||||||||
Net loss from discontinued operations, net of taxes | (135 | ) | (936 | ) | ||||||||||||
Net loss | $ | (6,504 | ) | $ | (1,224 | ) | (7,855 | ) | (6,504 | ) | ||||||
Net loss per share: | ||||||||||||||||
Basic and Diluted | $ | (0.27 | ) | $ | (0.05 | ) | ||||||||||
Basic and diluted – continuing operations | $ | (0.31 | ) | $ | (0.23 | ) | ||||||||||
Basic and diluted – discontinued operations | $ | (0.01 | ) | $ | (0.04 | ) | ||||||||||
Basic and diluted – net loss | $ | (0.32 | ) | $ | (0.27 | ) | ||||||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic and Diluted | 24,033 | 23,483 | ||||||||||||||
Basic and diluted | 24,800 | 24,033 |
Three Months Ended | Three Months Ended | |||||||||||||||
April 3, 2021 | March 28, 2020 | April 2, 2022 | April 3, 2021 | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
Net loss | $ | (6,504 | ) | $ | (1,224 | ) | $ | (7,855 | ) | $ | (6,504 | ) | ||||
Other comprehensive loss, before tax: | ||||||||||||||||
Change in unrealized net gain (loss) on available-for-sale | (20 | ) | 2 | (174 | ) | (20 | ) | |||||||||
Foreign currency translation losses | (68 | ) | (95 | ) | (33 | ) | (68 | ) | ||||||||
Other comprehensive loss, before tax | (88 | ) | (93 | ) | (207 | ) | (88 | ) | ||||||||
Income tax provision related to items in other comprehensive loss | 0 | 0 | 0— | 0— | ||||||||||||
Other comprehensive loss, net of tax | (88 | ) | (93 | ) | (207 | ) | (88 | ) | ||||||||
Comprehensive loss | $ | (6,592 | ) | $ | (1,317 | ) | $ | (8,062 | ) | $ | (6,592 | ) | ||||
Three Months Ended | Three Months Ended | |||||||||||||||
April 3, 2021 | March 28, 2020 | April 2, 2022 | April 3, 2021 | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
Operating activities | ||||||||||||||||
Net loss | $ | (6,504 | ) | $ | (1,224 | ) | $ | (7,855 | ) | $ | (6,504 | ) | ||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||||||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||||||||||
Depreciation and amortization | 791 | 858 | 445 | 791 | ||||||||||||
Net amortization (accretion) of investment premiums and discounts | 33 | (19 | ) | 17 | 33 | |||||||||||
Equity-based compensation | 968 | 672 | (1,036 | ) | 968 | |||||||||||
Straight-line rent adjustment and amortization of lease incentives | (115 | ) | (74 | ) | (198 | ) | (115 | ) | ||||||||
Loss on disposal of fixed assets | 1,453 | 0— | ||||||||||||||
Deferred income taxes | (40 | ) | 114 | (6 | ) | (40 | ) | |||||||||
Changes in operating assets and liabilities | 7,399 | 786 | 3,130 | 7,399 | ||||||||||||
Total adjustments | 9,036 | 2,337 | 3,805 | 9,036 | ||||||||||||
Net cash provided by operating activities | 2,532 | 1,113 | ||||||||||||||
Net cash provided by (used in) operating activities | (4,050 | ) | 2,532 | |||||||||||||
Investing activities | ||||||||||||||||
Purchases of investments | (5,962 | ) | (4,242 | ) | (6,525 | ) | (5,962 | ) | ||||||||
Proceeds from sales and maturities of investments | 6,140 | 5,530 | 5,634 | 6,140 | ||||||||||||
Purchases of leasehold improvements and equipment | (243 | ) | (1,145 | ) | (618 | ) | (243 | ) | ||||||||
Net cash provided by (used in) investing activities | (65 | ) | 143 | |||||||||||||
Net cash used in investing activities | (1,509 | ) | (65 | ) | ||||||||||||
Financing activities | ||||||||||||||||
Proceeds from issuance of common stock | 1,096 | 950 | 1,033 | 1,096 | ||||||||||||
Common stock repurchases | 0 | (393 | ) | |||||||||||||
Taxes paid related to net share settlement | (20 | ) | (36 | ) | (135 | ) | (20 | ) | ||||||||
Net cash provided by financing activities | 1,076 | 521 | 898 | 1,076 | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (68 | ) | (94 | ) | (33 | ) | (68 | ) | ||||||||
Net increase in cash, cash equivalents and restricted cash | 3,475 | 1,683 | ||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | (4,694 | ) | 3,475 | |||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 30,128 | 20,554 | 103,514 | 30,128 | ||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 33,603 | $ | 22,237 | $ | 98,820 | $ | 33,603 | ||||||||
1. | Description of Business and Basis of Presentation |
2. | Divestiture and Discontinued Operations |
Three Months Ended | ||||||||
April 2, 2022 | April 3, 2021 | |||||||
(in thousands) | ||||||||
Net revenues: | ||||||||
Systems and components | $ | — | $ | 3,822 | ||||
Technology development | — | 3,181 | ||||||
Total net revenues | — | 7,003 | ||||||
Cost of net revenues: | ||||||||
Systems and components | — | 2,860 | ||||||
Technology development | — | 3,223 | ||||||
Total cost of net revenues | — | 6,083 | ||||||
Gross profit | — | 920 | ||||||
Operating expenses: | ||||||||
Research and development | — | 260 | ||||||
Selling, general and administrative | 135 | 1,596 | ||||||
Total operating expenses | 135 | 1,856 | ||||||
Operating loss – discontinued operations | (135 | ) | (936 | ) | ||||
Other income (expense) – discontinued operations | 0— | 0— | ||||||
Loss from discontinued operations before provision for (benefit from) income taxes | (135 | ) | (936 | ) | ||||
Provision for (benefit from) income taxes | 0 | 0 | ||||||
Net loss from discontinued operations net of taxes | $ | (135 | ) | $ | (936 | ) | ||
Three Months Ended | ||||||||
April 2, | April 3, | |||||||
2022 | 2021 | |||||||
(in thousands) | ||||||||
Depreciation and amortization | $ | — | $ | 285 | ||||
Equity-based compensation | $ | (330 | ) | $ | 272 | |||
Purchase of leasehold improvements and equipment | $ | — | $ | 73 |
3. | Revenue |
TFE | Three Months Ended April 3, 2021 | Three Months Ended March 28, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended April 2, 2022 | Three Months Ended April 3, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | HDD | DCP | PV | Total | HDD | DCP | PV | ASP | 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 | $ | 3,123 | $ | 0 | $ | 53 | $ | 3,176 | $ | 3,585 | $ | 0 | $ | 111 | $ | 3,850 | $ | 7,546 | ||||||||||||||||||||||||||||||||||
Field service | 1,636 | 14 | 42 | 0— | 1,692 | 1,393 | 0— | 1,393 | 1,263 | 0 | 6 | 1,269 | 1,636 | 14 | 42 | 0 | 1,692 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total TFE net revenues | $ | 5,221 | $ | 14 | $ | 153 | $ | 3,850 | $ | 9,238 | $ | 7,754 | $ | 208 | $ | 7,962 | $ | 4,386 | $ | 0 | $ | 59 | $ | 4,445 | $ | 5,221 | $ | 14 | $ | 153 | $ | 3,850 | $ | 9,238 | ||||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||
April 2, 2022 | April 3, 2021 | |||||||
(in thousands) | ||||||||
United States | $ | 294 | $ | 367 | ||||
Asia | 4,151 | 5,021 | ||||||
Europe | 0 | 3,850 | ||||||
Total net revenues | $ | 4,445 | $ | 9,238 | ||||
Three Months Ended | ||||||||
April 2, 2022 | April 3, 2021 | |||||||
(in thousands) | ||||||||
Products transferred at a point in time | $ | 4,445 | $ | 9,238 | ||||
Products and services transferred over time | 0 | 0 | ||||||
Total net revenues | $ | 4,445 | $ | 9,238 | ||||
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 |
Three Months Ended | ||||||||
Photonics | April 3, 2021 | March 28, 2020 | ||||||
(In thousands) | ||||||||
Technology development: | ||||||||
Firm Fixed Price (“FFP”) | 1,804 | 4,430 | ||||||
Cost Plus Fixed Fee (“CPFF”) | 1,377 | 574 | ||||||
Time and materials | 0— | 0— | ||||||
Total technology development net revenues | 3,181 | 5,004 | ||||||
Total Photonics net revenues | $ | 7,003 | $ | 10,878 | ||||
Three Months Ended | ||||||||||||||||||||||||
April 3, 2021 | March 28, 2020 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
TFE | Photonics | Total | TFE | Photonics | Total | |||||||||||||||||||
United States | $ | 367 | $ | 6,960 | $ | 7,327 | $ | 519 | $ | 10,856 | $ | 11,375 | ||||||||||||
Asia | 5,021 | — | 5,021 | 7,443 | 0— | 7,443 | ||||||||||||||||||
Europe | 3,850 | 43 | 3,893 | — | 22 | 22 | ||||||||||||||||||
Total net revenues | $ | 9,238 | $ | 7,003 | $ | 16,241 | $ | 7,962 | $ | 10,878 | $ | 18,840 | ||||||||||||
Three Months Ended | ||||||||||||||||||||||||
April 3, 2021 | March 28, 2020 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
TFE | Photonics | Total | TFE | Photonics | Total | |||||||||||||||||||
Products transferred at a point in time | $ | 9,238 | $ | 442 | $ | 9,680 | $ | 7,962 | $ | 430 | $ | 8,392 | ||||||||||||
Products and services transferred over time | — | 6,561 | 6,561 | — | 10,448 | 10,448 | ||||||||||||||||||
$ | 9,238 | $ | 7,003 | $ | 16,241 | $ | 7,962 | $ | 10,878 | $ | 18,840 | |||||||||||||
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 | ||||||
April 2, 2022 | January 1, 2022 | Three Months Change | ||||||||||
(in thousands) | ||||||||||||
Contract assets: | ||||||||||||
Accounts receivable, unbilled | $ | 0 | $ | 99 | $ | (99 | ) | |||||
Contract liabilities: | ||||||||||||
Deferred revenue | $ | 55 | $ | 65 | $ | (10 | ) | |||||
Customer advances | 15,320 | 2,107 | 13,213 | |||||||||
$ | 15,375 | $ | 2,172 | $ | 13,203 | |||||||
Inventories |
April 3, 2021 | January 2, 2021 | |||||||
(In thousands) | ||||||||
Raw materials | $ | 10,422 | $ | 9,999 | ||||
Work-in-progress | 5,885 | 4,832 | ||||||
Finished goods | 4,194 | 6,858 | ||||||
$ | 20,501 | $ | 21,689 | |||||
April 2, | January 1, | |||||||
2022 | 2022 | |||||||
(in thousands) | ||||||||
Raw materials | $ | 6,346 | $ | 5,323 | ||||
Work-in-progress | 2,562 | 468 | ||||||
$ | 8,908 | $ | 5,791 | |||||
Equity-Based Compensation |
Three Months Ended | ||||||||||||||||
Three Months Ended | April 2, 2022 | April 3, 2021 | ||||||||||||||
April 3, 2021 | March 28, 2020 | |||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
Equity-based compensation by type of award: | ||||||||||||||||
Stock options | $ | 75 | $ | 215 | $ | (171 | ) | $ | 75 | |||||||
RSUs | 543 | 366 | (728 | ) | 543 | |||||||||||
Employee stock purchase plan | 350 | 91 | ||||||||||||||
ESPP purchase rights | (137 | ) | 350 | |||||||||||||
Total equity-based compensation | $ | 968 | $ | 672 | $ | (1,036 | ) | $ | 968 | |||||||
(a) | A reversal of $1.3 million in equity-based compensation expense related to forfeitures of awards due to our reduction in workforce and a $37,000 benefit related to the modification of certain stock-based awards for the three months ended April 2, 2022. (See Note 13. Restructuring and Other Costs, Net.); and |
(b) | Equity-based compensation reported in discontinued operations of ($330,000) and $272,000 for the three months ended April 2, 2022 and April 3, 2021, respectively. Equity-based compensation expense allocated to discontinued operations for the three months ended April 2, 2022 includes $75,000 related to the modification of certain stock-based awards and is net of a divestiture-related forfeiture benefit of $446,000 that was recognized when employees were conveyed to the Buyer upon closing. (See Note 2. Divestiture and Discontinued Operations.) |
Shares | Weighted-Average Exercise Price | Shares | Weighted-Average Exercise Price | |||||||||||||
Options outstanding at January 2, 2021 | 1,814,467 | $ | 6.66 | |||||||||||||
Options outstanding at January 1, 2022 | 1,457,587 | $ | 6.55 | |||||||||||||
Options granted | 0— | $ | 0— | 0 | $ | 0 | ||||||||||
Options cancelled and forfeited | (50,250 | ) | $ | 8.32 | (102,152 | ) | $ | 5.43 | ||||||||
Options exercised | (28,399 | ) | $ | 6.78 | (65,563 | ) | $ | 5.06 | ||||||||
Options outstanding at April 3, 2021 | 1,735,818 | $ | 6.60 | |||||||||||||
Options outstanding at April 2, 2022 | 1,289,872 | $ | 6.72 | |||||||||||||
Options exercisable at April 3, 2021 | 1,317,348 | $ | 6.71 | |||||||||||||
Options exercisable at April 2, 2022 | 1,223,472 | $ | 6.79 |
Three Months Ended | ||||||||||||||||
April 3, 2021 | March 28, 2020 | Three Months Ended | ||||||||||||||
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 | ||||||||||||||
April 2, 2022 | April 3, 2021 | |||||||||||||||
ESPP Purchase Rights: | ||||||||||||||||
Weighted-average fair value of grants per share | $ | 2.69 | $ | 1.66 | $ | 1.85 | $ | 2.69 | ||||||||
Expected volatility | 58.56 | % | 36.69 | % | 60.36 | % | 58.56 | % | ||||||||
Risk-free interest rate | 0.08 | % | 1.56 | % | 0.98 | % | 0.08 | % | ||||||||
Expected term of purchase rights (in years) | 1.0 | 0.5 | 1.2 | 1.0 | ||||||||||||
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 | |||||||||||||
Non-vested RSUs at January 1, 2022 | 1,033,436 | $ | 5.59 | |||||||||||||
Granted | 9,603 | $ | 6.45 | 300,928 | $ | 5.11 | ||||||||||
Vested | (9,320 | ) | $ | 6.72 | (66,704 | ) | $ | 5.45 | ||||||||
Cancelled and forfeited | (11,051 | ) | $ | 5.36 | (533,199 | ) | $ | 5.65 | ||||||||
Non-vested | 890,866 | $ | 5.29 | |||||||||||||
Non-vested RSUs at April 2, 2022 | 734,461 | $ | 5.37 | |||||||||||||
Warranty |
Three Months Ended | Three Months Ended | |||||||||||||||
April 3, 2021 | March 28, 2020 | April 2, 2022 | April 3, 2021 | |||||||||||||
(In thousands) | (in thousands) | |||||||||||||||
Opening balance | $ | 480 | $ | 1,022 | $ | 346 | $ | 480 | ||||||||
Expenditures incurred under warranties | (199 | ) | (120 | ) | (171 | ) | (153 | ) | ||||||||
Expenditures incurred under warranties included in discontinued operations | 0 | (46 | ) | |||||||||||||
Accruals for product warranties issued during the reporting period | 275 | 25 | 36 | 255 | ||||||||||||
Accruals for product warranties issued during the reporting period included in discontinued operations | 0 | 20 | ||||||||||||||
Adjustments to previously existing warranty accruals | 34 | (202 | ) | 38 | (10 | ) | ||||||||||
Adjustments to previously existing warranty accruals included in discontinued operations | 0 | 44 | ||||||||||||||
Closing balance | $ | 590 | $ | 725 | $ | 249 | $ | 590 | ||||||||
April 3 | January 2, | |||||||||||||||
2021 | 2021 | April 2 2022 | January 1 2022 | |||||||||||||
(In thousands) | (in thousands) | |||||||||||||||
Other accrued liabilities | $ | 537 | $ | 405 | $ | 219 | $ | 301 | ||||||||
Other long-term liabilities | 53 | 75 | 30 | 45 | ||||||||||||
Total warranty provision | $ | 590 | $ | 480 | $ | 249 | $ | 346 | ||||||||
Guarantees |
Cash, Cash Equivalents and Investments |
April 3, 2021 | April 2, 2022 | |||||||||||||||||||||||||||||||
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 | $ | 27,929 | $ | — | $ | — | $ | 27,929 | $ | 93,662 | $ | 0 | $ | 0 | $ | 93,662 | ||||||||||||||||
Money market funds | 4,387 | — | — | 4,387 | 3,042 | 0 | 0 | 3,042 | ||||||||||||||||||||||||
Certificates of deposit | 500 | — | — | 500 | 500 | 0 | 0 | 500 | ||||||||||||||||||||||||
Commercial paper | 300 | 0 | 0 | 300 | ||||||||||||||||||||||||||||
U.S. treasury securities | 530 | 0 | 0 | 530 | ||||||||||||||||||||||||||||
Total cash and cash equivalents | $ | 32,816 | $ | — | $ | — | $ | 32,816 | $ | 98,034 | $ | 0 | $ | 0 | $ | 98,034 | ||||||||||||||||
Short-term investments: | ||||||||||||||||||||||||||||||||
Certificates of deposit | $ | 6,750 | $ | 1 | $ | — | $ | 6,751 | $ | 2,750 | $ | 0 | $ | 11 | $ | 2,739 | ||||||||||||||||
Commercial paper | 898 | 0 | 0 | 898 | ||||||||||||||||||||||||||||
Corporate bonds and medium-term notes | 4,714 | 3 | — | 4,717 | 3,293 | 0 | 27 | 3,266 | ||||||||||||||||||||||||
Municipal bonds | 595 | — | — | 595 | 145 | 0 | 2 | 143 | ||||||||||||||||||||||||
U.S. treasury and agency securities | 3,998 | 16 | — | 4,014 | ||||||||||||||||||||||||||||
U.S. treasury securities | 1,909 | 0 | 14 | 1,895 | ||||||||||||||||||||||||||||
Total short-term investments | $ | 16,057 | $ | 20 | $ | — | $ | 16,077 | $ | 8,995 | $ | 0 | $ | 54 | $ | 8,941 | ||||||||||||||||
Long-term investments: | ||||||||||||||||||||||||||||||||
Certificates of deposit | $ | 500 | $ | — | $ | 2 | $ | 498 | ||||||||||||||||||||||||
Asset backed securities | $ | 3,745 | $ | 0 | $ | 30 | $ | 3,715 | ||||||||||||||||||||||||
Corporate bonds and medium-term notes | 2,012 | — | 1 | 2,011 | 1,718 | 0 | 22 | 1,696 | ||||||||||||||||||||||||
U.S. treasury and agency securities | 1,409 | 1 | — | 1,410 | ||||||||||||||||||||||||||||
Municipal bonds | 347 | 0 | 2 | 345 | ||||||||||||||||||||||||||||
U.S. treasury securities | 3,747 | 0 | 96 | 3,651 | ||||||||||||||||||||||||||||
Total long-term investments | $ | 3,921 | $ | 1 | $ | 3 | $ | 3,919 | $ | 9,557 | $ | 0 | $ | 150 | $ | 9,407 | ||||||||||||||||
Total cash, cash equivalents, and investments | $ | 52,794 | $ | 21 | $ | 3 | $ | 52,812 | $ | 116,586 | $ | 0 | $ | 204 | $ | 116,382 | ||||||||||||||||
January 2, 2021 | January 1, 2022 | |||||||||||||||||||||||||||||||
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 | $ | 102,494 | $ | 0 | $ | 0 | $ | 102,494 | ||||||||||||||||
Money market funds | 3,612 | — | — | 3,612 | 234 | 0 | 0 | 234 | ||||||||||||||||||||||||
Certificates of deposit | 1,000 | — | — | 1,000 | ||||||||||||||||||||||||||||
Total cash and cash equivalents | $ | 29,341 | $ | — | $ | — | $ | 29,341 | $ | 102,728 | $ | 0 | $ | 0 | $ | 102,728 | ||||||||||||||||
Short-term investments: | ||||||||||||||||||||||||||||||||
Certificates of deposit | $ | 6,450 | $ | 2 | $ | 0 | $ | 6,452 | $ | 4,300 | $ | 0 | $ | 0 | $ | 4,300 | ||||||||||||||||
Commercial paper | 500 | 0 | 0 | 500 | 400 | 0 | 0 | 400 | ||||||||||||||||||||||||
Corporate bonds and medium-term notes | 2,929 | 6 | 0 | 2,935 | 2,916 | 0 | 3 | 2,913 | ||||||||||||||||||||||||
Municipal bonds | 400 | — | — | 400 | 700 | 0 | 0 | 700 | ||||||||||||||||||||||||
U.S. treasury and agency securities | 4,527 | 25 | — | 4,552 | ||||||||||||||||||||||||||||
U.S. treasury securities | 1,910 | 0 | 2 | 1,908 | ||||||||||||||||||||||||||||
Total short-term investments | $ | 14,806 | $ | 33 | $ | 0 | $ | 14,839 | $ | 10,226 | $ | 0 | $ | 5 | $ | 10,221 | ||||||||||||||||
Long-term investments: | ||||||||||||||||||||||||||||||||
Asset backed securities | $ | 2,040 | $ | 0 | $ | 3 | $ | 2,037 | ||||||||||||||||||||||||
Certificates of deposit | $ | 500 | $ | 0 | $ | 0— | $ | 500 | 500 | 0 | 3 | 497 | ||||||||||||||||||||
Corporate bonds and medium-term notes | 3,474 | 4 | 0 | 3,478 | 1,521 | 0 | 6 | 1,515 | ||||||||||||||||||||||||
U.S. treasury and agency securities | 1,409 | 1 | 0 | 1,410 | ||||||||||||||||||||||||||||
Municipal bonds | 145 | 0 | 1 | 144 | ||||||||||||||||||||||||||||
U.S. treasury securities | 3,246 | 0 | 12 | 3,234 | ||||||||||||||||||||||||||||
Total long-term investments | $ | 5,383 | $ | 5 | $ | 0 | $ | 5,388 | $ | 7,452 | $ | 0 | $ | 25 | $ | 7,427 | ||||||||||||||||
Total cash, cash equivalents, and investments | $ | 49,530 | $ | 38 | $ | 0 | $ | 49,568 | $ | 120,406 | $ | 0 | $ | 30 | $ | 120,376 | ||||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||
(In thousands) | (in thousands) | |||||||||||||||
Due in one year or less | $ | 20,944 | $ | 20,964 | $ | 13,367 | $ | 13,313 | ||||||||
Due after one through five years | 3,921 | 3,919 | 9,557 | 9,407 | ||||||||||||
$ | 24,865 | $ | 24,883 | $ | 22,924 | $ | 22,720 | |||||||||
April 3, 2021 | April 2, 2022 | |||||||||||||||||||||||||||||||
In Loss Position for Less than 12 Months | In Loss Position for Greater than 12 Months | 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 | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||||||||||||||||||||||
(In thousands) | (in thousands) | |||||||||||||||||||||||||||||||
Asset backed securities | $ | 3,715 | $ | 30 | $ | 0 | $ | 0 | ||||||||||||||||||||||||
Certificates of deposit | $ | 1,498 | $ | 2 | $ | 0 | $ | 0 | 2,739 | 11 | 0 | 0 | ||||||||||||||||||||
Corporate bonds and medium-term notes | 2,686 | 1 | 0 | 0 | 4,460 | 44 | 502 | 5 | ||||||||||||||||||||||||
Municipal bonds | 488 | 4 | 0 | 0 | ||||||||||||||||||||||||||||
U.S. treasury securities | 5,546 | 110 | 0 | 0 | ||||||||||||||||||||||||||||
$ | 4,184 | $ | 3 | $ | 0 | $ | 0 | $ | 16,948 | $ | 199 | $ | 502 | $ | 5 | |||||||||||||||||
Fair Value Measurements at April 2, 2022 | ||||||||||||
Total | Level 1 | Level 2 | ||||||||||
(in thousands) | ||||||||||||
Recurring fair value measurements: | ||||||||||||
Investment securities | ||||||||||||
Money market funds | $ | 3,042 | $ | 3,042 | $ | 0 | ||||||
U.S. treasury securities | 6,076 | 6,076 | 0 | |||||||||
Asset backed securities | 3,715 | 0 | 3,715 | |||||||||
Certificates of deposit | 3,239 | 0 | 3,239 | |||||||||
Commercial paper | 1,198 | 0 | 1,198 | |||||||||
Corporate bonds and medium-term notes | 4,962 | 0 | 4,962 | |||||||||
Municipal bonds | 488 | 0 | 488 | |||||||||
Total recurring fair value measurements | $ | 22,720 | $ | 9,118 | $ | 13,602 | ||||||
Fair Value Measurements at April 3, 2021 | ||||||||||||
Total | Level 1 | Level 2 | ||||||||||
(In thousands) | ||||||||||||
Recurring fair value measurements: | ||||||||||||
Available-for-sale | ||||||||||||
Money market funds | $ | 4,387 | $ | 4,387 | $ | — | ||||||
U.S. treasury and agency securities | 5,424 | 5,424 | — | |||||||||
Certificates of deposit | 7,749 | — | 7,749 | |||||||||
Corporate bonds and medium-term notes | 6,728 | — | 6,728 | |||||||||
Municipal bonds | 595 | — | 595 | |||||||||
Total recurring fair value measurements | $ | 24,883 | $ | 9,811 | $ | 15,072 | ||||||
Derivative Instruments |
Notional Amounts | Derivative Liabilities | |||||||||||||||||||||||
Derivative Instrument | April 3, 2021 | January 2, 2021 | April 3, 2021 | January 2, 2021 | ||||||||||||||||||||
Balance Sheet Line | Fair Value | Balance Sheet Line | Fair Value | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Undesignated Hedges: | ||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 594 | 983 | * | $ | 1 | * | $ | 3 | |||||||||||||||
Total Hedges | $ | 594 | 983 | $ | 1 | $ | 3 | |||||||||||||||||
Notional Amounts | Derivative Liabilities | Derivative Assets | ||||||||||||||||||||||
Derivative Instrument | April 2, 2022 | January 1, 2022 | April 2, 2022 | January 1, 2022 | ||||||||||||||||||||
Balance Sheet Line | Fair Value | Balance Sheet Line | Fair Value | |||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Undesignated Hedges: | ||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 1,179 | 815 | (b ) | $ | 0 | (a ) | $ | 1 | |||||||||||||||
Total Hedges | $ | 1,179 | 815 | $ | 0 | $ | 1 | |||||||||||||||||
Three Months Ended April 2, 2022 | ||||||||||||||||||||||||||||||||||||||||
Common Stock and Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income | Accumulated Deficit | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||
Balance at January 1, 2022 | $ | 199,098 | $ | (29,551 | ) | $ | 578 | $ | (36,110 | ) | $ | 134,015 | ||||||||||||||||||||||||||||
Common stock issued under employee plans | 1,033 | — | — | — | 1,033 | |||||||||||||||||||||||||||||||||||
Shares withheld for net share settlement of RSUs | (135 | ) | — | — | — | (135 | ) | |||||||||||||||||||||||||||||||||
Equity-based compensation expense | (1,036 | ) | — | — | — | (1,036 | ) | |||||||||||||||||||||||||||||||||
Net loss | — | — | — | (7,855 | ) | (7,855 | ) | |||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | (207 | ) | — | (207 | ) | |||||||||||||||||||||||||||||||||
Balance at April 2, 2022 | $ | 198,960 | $ | (29,551 | ) | $ | 371 | $ | (43,965 | ) | $ | 125,815 | ||||||||||||||||||||||||||||
Three Months Ended April 3, 2021 | Three Months Ended April 3, 2021 | |||||||||||||||||||||||||||||||||||||||
Common Stock and Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income | Accumulated Deficit | Total Stockholders’ Equity | 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 | $ | 193,197 | $ | (29,551 | ) | $ | 640 | $ | (62,730 | ) | $ | 101,556 | ||||||||||||||||
Common stock issued under employee plans | 1,223 | — | — | — | 1,223 | 1,243 | — | — | — | 1,243 | ||||||||||||||||||||||||||||||
Shares withheld for net share settlement of RSUs | (20 | ) | — | — | — | (20 | ) | |||||||||||||||||||||||||||||||||
Equity-based compensation expense | 968 | — | — | — | 968 | 968 | — | — | — | 968 | ||||||||||||||||||||||||||||||
Net loss | — | — | — | (6,504 | ) | (6,504 | ) | — | — | — | (6,504 | ) | (6,504 | ) | ||||||||||||||||||||||||||
Other comprehensive loss | — | — | (88 | ) | — | (88 | ) | — | — | (88 | ) | — | (88 | ) | ||||||||||||||||||||||||||
Balance at April 3, 2021 | $ | 195,388 | $ | (29,551 | ) | $ | 552 | $ | (69,234 | ) | $ | 97,155 | $ | 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 | ||||||||||||||||||||||||
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 | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Beginning balance | $ | 602 | $ | 38 | $ | 640 | $ | 381 | $ | 43 | $ | 424 | ||||||||||||
Other comprehensive income (loss) before reclassification | (68 | ) | (20 | ) | (88 | ) | (95 | ) | 2 | (93 | ) | |||||||||||||
Amounts reclassified from other comprehensive income (loss) | — | — | — | — | — | — | ||||||||||||||||||
Net current-period other comprehensive income (loss) | (68 | ) | (20 | ) | (88 | ) | (95 | ) | 2 | (93 | ) | |||||||||||||
Ending balance | $ | 534 | $ | 18 | $ | 552 | $ | 286 | $ | 45 | $ | 331 | ||||||||||||
Three Months Ended | ||||||||||||||||||||||||
April 2, 2022 | April 3, 2021 | |||||||||||||||||||||||
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) | ||||||||||||||||||||||||
Beginning balance | $ | 608 | $ | (30 | ) | $ | 578 | $ | 602 | $ | 38 | $ | 640 | |||||||||||
Other comprehensive income (loss) before reclassification | (33 | ) | (174 | ) | (207 | ) | (68 | ) | (20 | ) | (88 | ) | ||||||||||||
Amounts reclassified from other comprehensive income (loss) | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Net current-period other comprehensive income (loss) | (33 | ) | (174 | ) | (207 | ) | (68 | ) | (20 | ) | (88 | ) | ||||||||||||
Ending balance | $ | 575 | $ | (204 | ) | $ | 371 | $ | 534 | $ | 18 | $ | 552 | |||||||||||
Three Months Ended | ||||||||
April 3, 2021 | March 28, 2020 | |||||||
(In thousands, except per share amounts) | ||||||||
Shares of common stock repurchased | 0 | 98 | ||||||
Cost of stock repurchased | $ | — | $ | 393 | ||||
Average price paid per share share | $ | 0 | $ | 3.97 |
Net Loss Per Share |
Three Months Ended | Three Months Ended | |||||||||||||||
April 3, 2021 | March 28, 2020 | April 2, 2022 | April 3, 2021 | |||||||||||||
(in thousands) | ||||||||||||||||
Net loss from continuing operations | $ | (7,720 | ) | $ | (5,568 | ) | ||||||||||
Net loss from discontinued operations, net of tax | (135 | ) | (936 | ) | ||||||||||||
(In thousands) | ||||||||||||||||
Net loss | $ | (6,504 | ) | $ | (1,224 | ) | $ | (7,855 | ) | $ | (6,504 | ) | ||||
Weighted-average shares – basic | 24,033 | 23,483 | 24,800 | 24,033 | ||||||||||||
Effect of dilutive potential common shares | 0 | 0 | 0 | 0 | ||||||||||||
Weighted-average shares – diluted | 24,033 | 23,483 | 24,800 | 24,033 | ||||||||||||
Net loss per share – basic and diluted | $ | (0.27 | ) | $ | (0.05 | ) | ||||||||||
Basic and diluted net loss per share: | ||||||||||||||||
Continuing operations | $ | (0.31 | ) | $ | (0.23 | ) | ||||||||||
Discontinued operations | $ | (0.01 | ) | $ | (0.04 | ) | ||||||||||
Net loss per share | $ | (0.32 | ) | $ | (0.27 | ) | ||||||||||
Three Months Ended | ||||||||
April 3, 2021 | March 28, 2020 | |||||||
(In thousands) | ||||||||
TFE | $ | 9,238 | $ | 7,962 | ||||
Photonics | 7,003 | 10,878 | ||||||
Total segment net revenues | $ | 16,241 | $ | 18,840 | ||||
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 | ) | ||
April 3, 2021 | January 2, 2021 | |||||||
(In thousands) | ||||||||
TFE | $ | 33,042 | $ | 44,335 | ||||
Photonics | 21,474 | 22,923 | ||||||
Total segment assets | 54,516 | 67,258 | ||||||
Cash, cash equivalents and investments | 52,812 | 49,568 | ||||||
Restricted cash | 787 | 787 | ||||||
Deferred income taxes | 5,375 | 5,335 | ||||||
Other current assets | 1,194 | 1,093 | ||||||
Common property, plant and equipment | 1,355 | 1,443 | ||||||
Common operating lease right-of-use | 1,493 | 1,603 | ||||||
Other assets | 109 | 151 | ||||||
Consolidated total assets | $ | 117,641 | $ | 127,238 | ||||
12. | Income Taxes |
13. | Restructuring |
Employee Termination Costs | ||||
(in thousands) | ||||
Balance at January 1, 2022 | $ | 0 | ||
Provision for restructuring charges under the 2022 Cost Reduction Plan | 1,232 | |||
Cash payments made | (757 | ) | ||
Non-cash utilization (a) | 37 | |||
Balance at April 2, 2022 (b) | $ | 512 | ||
Employee Termination Costs | Other Exit Costs | Total | ||||||||||
(in thousands) | ||||||||||||
Balance at January 1, 2022 | $ | 358 | $ | 665 | $ | 1,023 | ||||||
Provision for restructuring charges associated with Photonics divestiture (a) | 112 | 2 | 114 | |||||||||
Cash payments made | (137 | ) | (128 | ) | (265 | ) | ||||||
Non-cash utilization (b) | (75 | ) | 0 | (75 | ) | |||||||
Balance at April 2, 2022 | $ | 258 | (c) | $ | 539 | $ | 797 | |||||
Three Months Ended | ||||
April 3, | ||||
2021 | ||||
( | ||||
Beginning balance | $ | |||
Provision for restructuring reserves | 43 | |||
Cash payments made | (43 | ) | ||
Ending balance | $ | |||
14. | Commitments and Contingencies |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Three Months Ended | Three Months Ended | |||||||||||||||||||||||
April 3, 2021 | March 28, 2020 | Change over prior period | April 3, 2021 | April 3, 2021 | 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 | ) | $ | 4,445 | $ | 9,238 | $ | (4,793 | ) | ||||||||||
Gross profit | $ | 3,054 | $ | 8,156 | $ | (5,102 | ) | $ | 723 | $ | 2,134 | $ | (1,411 | ) | ||||||||||
Gross margin percent | 18.8 | % | 43.3 | % | (24.5) points | 16.3 | % | 23.1 | % | (6.8) points | ||||||||||||||
Loss from operations | $ | (6,501 | ) | $ | (1,100 | ) | $ | (5,401 | ) | $ | (7,686 | ) | $ | (5,565 | ) | $ | (2,121 | ) | ||||||
Net loss from continuing operations | $ | (7,720 | ) | $ | (5,568 | ) | $ | (2,152 | ) | |||||||||||||||
Net loss from discontinued operations, net of taxes | $ | (135 | ) | $ | (936 | ) | $ | 801 | ||||||||||||||||
Net loss | $ | (6,504 | ) | $ | (1,224 | ) | $ | (5,280 | ) | $ | (7,855 | ) | $ | (6,504 | ) | $ | (1,351 | ) | ||||||
Net loss per diluted share | $ | (0.27 | ) | $ | (0.05 | ) | $ | (0.22 | ) | $ | (0.32 | ) | $ | (0.27 | ) | $ | (0.05 | ) |
Three Months Ended | ||||||||||||
April 3, 2021 | March 28, 2020 | Change over prior period | ||||||||||
(In thousands) | ||||||||||||
TFE | $ | 9,238 | $ | 7,962 | $ | 1,276 | ||||||
Photonics | ||||||||||||
Products | 3,822 | 5,874 | (2,052 | ) | ||||||||
Contract R&D | 3,181 | 5,004 | (1,823 | ) | ||||||||
7,003 | 10,878 | (3,875 | ) | |||||||||
Total net revenues | $ | 16,241 | $ | 18,840 | $ | (2,599 | ) | |||||
Three Months Ended | ||||||||||||
April 2, 2022 | April 3, 2021 | Change over prior period | ||||||||||
(In thousands) | ||||||||||||
Total net revenues | $ | 4,445 | $ | 9,238 | $ | (4,793 | ) | |||||
April 3, 2021 | January 2, 2021 | March 28, 2020 | ||||||||||
(In thousands) | ||||||||||||
TFE | $ | 4,221 | $ | 5,623 | $ | 22,386 | ||||||
Photonics | 38,917 | 41,317 | 64,787 | |||||||||
Total backlog | $ | 43,138 | $ | 46,940 | $ | 87,173 | ||||||
April 2, 2022 | January 1, 2022 | April 3, 2021 | ||||||||||
(In thousands) | ||||||||||||
Total backlog | $ | 87,162 | $ | 24,725 | $ | 4,221 | ||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
April 3, 2021 | March 28, 2020 | Three Months Ended | ||||||||||||||||||||||||||||||
(In thousands) | April 2, 2022 | April 3, 2021 | ||||||||||||||||||||||||||||||
TFE | Photonics | Total | TFE | Photonics | Total | (in thousands) | ||||||||||||||||||||||||||
United States | $ | 367 | $ | 6,960 | $ | 7,327 | $ | 519 | $ | 10,856 | $ | 11,375 | $ | 294 | $ | 367 | ||||||||||||||||
Asia | 5,021 | — | 5,021 | 7,443 | — | 7,443 | 4,151 | 5,021 | ||||||||||||||||||||||||
Europe | 3,850 | 43 | 3,893 | — | 22 | 22 | — | 3,850 | ||||||||||||||||||||||||
Total net revenues | $ | 9,238 | $ | 7,003 | $ | 16,241 | $ | 7,962 | $ | 10,878 | $ | 18,840 | $ | 4,445 | $ | 9,238 | ||||||||||||||||
Three Months Ended | ||||||||||||
April 3, 2021 | March 28, 2020 | Change over prior period | ||||||||||
(In thousands, except percentages) | ||||||||||||
TFE gross profit | $ | 2,134 | $ | 3,500 | $ | (1,366 | ) | |||||
% of TFE net revenues | 23.1 | % | 44.0 | % | ||||||||
Photonics gross profit | $ | 920 | $ | 4,656 | $ | (3,736 | ) | |||||
% of Photonics net revenues | 13.1 | % | 42.8 | % | ||||||||
Total gross profit | $ | 3,054 | $ | 8,156 | $ | (5,102 | ) | |||||
% of net revenues | 18.8 | % | 43.3 | % |
Three Months Ended | ||||||||||||
April 2, 2022 | April 3, 2021 | Change over prior period | ||||||||||
(In thousands, except percentages) | ||||||||||||
TFE gross profit | $ | 723 | $ | 2,134 | $ | (1,411 | ) | |||||
% of TFE net revenues | 16.3 | % | 23.1 | % |
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 | ||||||||||||
April 2, 2022 | April 3, 2021 | Change over prior period | ||||||||||
(In thousands) | ||||||||||||
Research and development expense | $ | 4,160 | $ | 3,365 | $ | 795 |
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 | ||||||||||||
April 2, 2022 | April 3, 2021 | Change over prior period | ||||||||||
(In thousands) | ||||||||||||
Selling, general and administrative expense | $ | 4,249 | $ | 4,334 | $ | (85 | ) |
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 | ||||||||||||
April 3, 2021 | April 3, 2021 | Change over prior period | ||||||||||
(In thousands) | ||||||||||||
Interest income and other income (expense), net | $ | (8 | ) | $ | 29 | $ | (37 | ) |
Three Months Ended | ||||||||||||
April 3, 2021 | March 28, 2020 | Change over prior period | ||||||||||
(In thousands) | ||||||||||||
Income tax provision | $ | 32 | $ | 266 | $ | (234 | ) |
Three Months Ended | ||||||||||||
April 2, 2022 | April 3, 2021 | Change over prior period | ||||||||||
(In thousands) | ||||||||||||
Income tax provision | $ | 26 | $ | 32 | $ | (6 | ) |
Three Months Ended | ||||||||||||
April 2, 2022 | April 3, 2021 | Change over prior period | ||||||||||
(In thousands) | ||||||||||||
Loss from discontinued operations, net of taxes | $ | 135 | $ | 936 | $ | (801 | ) |
April 3, 2021 | January 2, 2021 | April 2, 2022 | January 2, 2021 | |||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
Cash and cash equivalents | $ | 32,816 | $ | 29,341 | $ | 98,034 | $ | 102,728 | ||||||||
Restricted cash | 787 | 787 | 786 | 786 | ||||||||||||
Short-term investments | 16,077 | 14,839 | 8,941 | 10,221 | ||||||||||||
Long-term investments | 3,919 | 5,388 | 9,407 | 7,427 | ||||||||||||
Total cash, cash equivalents, restricted cash and investments | $ | 53,599 | $ | 50,355 | $ | 117,168 | $ | 121,162 | ||||||||
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 |
* | 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: May | ||||||||
By: | /s/ | |||||||
President, Chief Executive Officer and Director | ||||||||
(Principal Executive Officer) | ||||||||
Date: May | ||||||||
By: | /s/ JAMES MONIZ | |||||||
James Moniz | ||||||||
Executive Vice President, Finance and Administration, | ||||||||
Chief Financial Officer, Secretary and Treasurer | ||||||||
(Principal Financial and Accounting Officer) |