☒ | 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 | ||||||
PART I. FINANCIAL INFORMATION | |||||||
Item 1. | |||||||
Condensed Consolidated Balance Sheets | 3 | ||||||
4 | |||||||
5 | |||||||
6 | |||||||
7 | |||||||
Item 2. | |||||||
Item 3. | 30 | ||||||
Item 4. | 30 | ||||||
Item 1. | 31 | ||||||
Item 1A. | 31 | ||||||
Item 2. | 37 | ||||||
Item 3. | 37 | ||||||
Item 4. | 37 | ||||||
Item 5. | 37 | ||||||
Item 6. | 37 | ||||||
38 | |||||||
Item 1. | Financial Statements |
October 2, 2021 | January 2, 2021 | |||||||
(Unaudited) | ||||||||
(In thousands, except par value) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 33,696 | $ | 29,341 | ||||
Short-term investments | 11,137 | 14,839 | ||||||
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 | 22,453 | 21,689 | ||||||
Prepaid expenses and other current assets | 1,981 | 1,893 | ||||||
Total current assets | 82,737 | 96,408 | ||||||
Long-term investments | 5,825 | 5,388 | ||||||
Restricted cash | 786 | 787 | ||||||
Property, plant and equipment, net | 9,209 | 11,004 | ||||||
Operating lease right-of-use-assets | 6,382 | 8,165 | ||||||
Deferred income taxes and other long-term assets | 5,554 | 5,486 | ||||||
Total assets | $ | 110,493 | $ | 127,238 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Current operating lease liabilities | $ | 3,047 | $ | 2,853 | ||||
Accounts payable | 4,659 | 4,259 | ||||||
Accrued payroll and related liabilities | 5,657 | 7,679 | ||||||
Other accrued liabilities | 2,649 | 3,631 | ||||||
Total current liabilities | 16,012 | 18,422 | ||||||
Noncurrent liabilities: | ||||||||
Noncurrent operating lease liabilities | 4,476 | 6,803 | ||||||
Other long-term liabilities | 450 | 457 | ||||||
Total noncurrent liabilities | 4,926 | 7,260 | ||||||
Stockholders’ equity: | ||||||||
Common stock, $0.001 par value | 25 | 24 | ||||||
Additional paid-in capital | 198,117 | 193,173 | ||||||
Treasury stock, 5,087 shares at both October 2, 2021 and at January 2, 2021 | (29,551 | ) | (29,551 | ) | ||||
Accumulated other comprehensive income | 557 | 640 | ||||||
Accumulated deficit | (79,593 | ) | (62,730 | ) | ||||
Total stockholders’ equity | 89,555 | 101,556 | ||||||
Total liabilities and stockholders’ equity | $ | 110,493 | $ | 127,238 | ||||
July 2, 2022 | January 1, 2022 | |||||||
(Unaudited) | ||||||||
(In thousands, except par value) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 53,669 | $ | 102,728 | ||||
Short-term investments | 31,168 | 10,221 | ||||||
Trade and other accounts receivable, net of allowances of $0 at both July 2, 2022 and January 1, 2022 | 30,321 | 14,261 | ||||||
Inventories | 11,771 | 5,791 | ||||||
Prepaid expenses and other current assets | 1,532 | 1,827 | ||||||
Total current assets | 128,461 | 134,828 | ||||||
Long-term investments | 24,565 | 7,427 | ||||||
Restricted cash | 786 | 786 | ||||||
Property, plant and equipment, net | 3,311 | 4,759 | ||||||
Operating lease right-of-use-assets | 3,510 | 4,520 | ||||||
Deferred income taxes and other long-term assets | 5,018 | 5,449 | ||||||
Total assets | $ | 165,651 | $ | 157,769 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Current operating lease liabilities | $ | 3,199 | $ | 3,119 | ||||
Accounts payable | 3,609 | 5,320 | ||||||
Accrued payroll and related liabilities | 3,542 | 5,505 | ||||||
Other accrued liabilities | 3,042 | 3,665 | ||||||
Customer advances | 24,760 | 2,107 | ||||||
Total current liabilities | 38,152 | 19,716 | ||||||
Noncurrent liabilities: | ||||||||
Noncurrent operating lease liabilities | 2,102 | 3,675 | ||||||
Other long-term liabilities | 237 | 363 | ||||||
Total noncurrent liabilities | 2,339 | 4,038 | ||||||
Stockholders’ equity: | ||||||||
Common stock, $0.001 par value | 25 | 25 | ||||||
Additional paid-in capital | 201,478 | 199,073 | ||||||
Treasury stock, 5,087 shares at both July 2, 2022 and at January 1, 2022 | (29,551 | ) | (29,551 | ) | ||||
Accumulated other comprehensive income (loss) | (9 | ) | 578 | |||||
Accumulated deficit | (46,783 | ) | (36,110 | ) | ||||
Total stockholders’ equity | 125,160 | 134,015 | ||||||
Total liabilities and stockholders’ equity | $ | 165,651 | $ | 157,769 | ||||
Three Months Ended | Nine Months Ended | |||||||||||||||
October 2, 2021 | September 26, 2020 | October 2, 2021 | September 26, 2020 | |||||||||||||
(Unaudited) | ||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Net revenues: | ||||||||||||||||
Systems and components | $ | 11,700 | $ | 15,027 | $ | 35,410 | $ | 51,589 | ||||||||
Technology development | 3,093 | 6,538 | 9,437 | 17,659 | ||||||||||||
Total net revenues | 14,793 | 21,565 | 44,847 | 69,248 | ||||||||||||
Cost of net revenues: | ||||||||||||||||
Systems and components | 7,120 | 8,389 | 25,708 | 29,969 | ||||||||||||
Technology development | 2,146 | 3,876 | 7,450 | 10,403 | ||||||||||||
Total cost of net revenues | 9,266 | 12,265 | 33,158 | 40,372 | ||||||||||||
Gross profit | 5,527 | 9,300 | 11,689 | 28,876 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 3,743 | 3,603 | 11,262 | 10,594 | ||||||||||||
Selling, general and administrative | 5,752 | 5,845 | 17,208 | 17,426 | ||||||||||||
Total operating expenses | 9,495 | 9,448 | 28,470 | 28,020 | ||||||||||||
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 | |||||||||
Provision for income taxes | 290 | 217 | 157 | 1,125 | ||||||||||||
Net loss | $ | (4,233 | ) | $ | (357 | ) | $ | (16,863 | ) | $ | (57 | ) | ||||
Net loss per share: | ||||||||||||||||
Basic and Diluted | $ | (0.17 | ) | $ | (0.02 | ) | $ | (0.69 | ) | $ | (0.00 | ) | ||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic and Diluted | 24,522 | 23,771 | 24,265 | 23,605 |
Three Months Ended | Six Months Ended | |||||||||||||||
July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | |||||||||||||
(Unaudited) | ||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Net revenues | $ | 9,307 | $ | 5,369 | $ | 13,752 | $ | 14,607 | ||||||||
Cost of net revenues | 4,820 | 4,363 | 8,543 | 11,467 | ||||||||||||
Gross profit | 4,487 | 1,006 | 5,209 | 3,140 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 2,868 | 3,118 | 7,028 | 6,483 | ||||||||||||
Selling, general and administrative | 4,016 | 4,197 | 8,265 | 8,531 | ||||||||||||
Total operating expenses | 6,884 | 7,315 | 15,293 | 15,014 | ||||||||||||
Loss from operations | (2,397 | ) | (6,309 | ) | (10,084 | ) | (11,874 | ) | ||||||||
Interest income and other income (expense), net | 317 | 20 | 310 | 50 | ||||||||||||
Loss from continuing operations before provision for (benefit from) income taxes | (2,080 | ) | (6,289 | ) | (9,774 | ) | (11,824 | ) | ||||||||
Provision for (benefit from) income taxes | 500 | (165 | ) | 526 | (132 | ) | ||||||||||
Net loss from continuing operations, net of taxes | (2,580 | ) | (6,124 | ) | (10,300 | ) | (11,692 | ) | ||||||||
Net loss from discontinued operations, net of taxes | (238 | ) | (2 | ) | (373 | ) | (938 | ) | ||||||||
Net loss | $ | (2,818 | ) | $ | (6,126 | ) | $ | (10,673 | ) | $ | (12,630 | ) | ||||
Net loss per share: | ||||||||||||||||
Basic and diluted – continuing operations | $ | (0.10 | ) | $ | (0.25 | ) | $ | (0.41 | ) | $ | (0.48 | ) | ||||
Basic and diluted – discontinued operations | $ | (0.01 | ) | $ | (0.00 | ) | $ | (0.01 | ) | $ | (0.04 | ) | ||||
Basic and diluted – net loss | $ | (0.11 | ) | $ | (0.25 | ) | $ | (0.43 | ) | $ | (0.52 | ) | ||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic and diluted | 25,141 | 24,241 | 24,970 | 24,137 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||
October 2, 2021 | September 26, 2020 | October 2, 2021 | September 26, 2020 | July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | |||||||||||||||||||||||||
(Unaudited) (In thousands) | (Unaudited) | |||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Net loss | $ | (4,233 | ) | $ | (357 | ) | $ | (16,863 | ) | $ | (57 | ) | $ | (2,818 | ) | $ | (6,126 | ) | $ | (10,673 | ) | $ | (12,630 | ) | ||||||||
Other comprehensive income (loss), before tax | ||||||||||||||||||||||||||||||||
Change in unrealized net gain on available-for-sale | (7 | ) | (24 | ) | (36 | ) | 29 | |||||||||||||||||||||||||
Other comprehensive income (loss), before tax: | ||||||||||||||||||||||||||||||||
Change in unrealized net gain (loss) on available-for-sale | (161 | ) | (9 | ) | (335 | ) | (29 | ) | ||||||||||||||||||||||||
Foreign currency translation gains (losses) | (7 | ) | 124 | (47 | ) | 49 | (219 | ) | 28 | (252 | ) | (40 | ) | |||||||||||||||||||
Other comprehensive income (loss), before tax | (14 | ) | 100 | (83 | ) | 78 | (380 | ) | 19 | (587 | ) | (69 | ) | |||||||||||||||||||
Income tax (expense) benefit related to items in other comprehensive income (loss) | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||
Income taxes related to items in other comprehensive income (loss) | 0— | 0— | 0 — | 0 — | ||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | (14 | ) | 100 | (83 | ) | 78 | (380 | ) | 19 | (587 | ) | (69 | ) | |||||||||||||||||||
Comprehensive income (loss) | $ | (4,247 | ) | $ | (257 | ) | $ | (16,946 | ) | $ | 21 | |||||||||||||||||||||
Comprehensive loss | $ | (3,198 | ) | $ | (6,107 | ) | $ | (11,260 | ) | $ | (12,699 | ) | ||||||||||||||||||||
Nine months ended | Six months ended | |||||||||||||||
October 2, 2021 | September 26, 2020 | July 2, 2022 | July 3, 2021 | |||||||||||||
�� | ||||||||||||||||
(Unaudited) (In thousands) | (Unaudited) | |||||||||||||||
(In thousands) | ||||||||||||||||
Operating activities | ||||||||||||||||
Net loss | $ | (16,863 | ) | $ | (57 | ) | $ | (10,673 | ) | $ | (12,630 | ) | ||||
Adjustments to reconcile net loss to net cash and cash equivalents provided by (used in) operating activities: | ||||||||||||||||
Depreciation and amortization | 2,568 | 2,645 | 776 | 1,686 | ||||||||||||
Net amortization (accretion) of investment premiums and discounts | 88 | (9 | ) | (20 | ) | 62 | ||||||||||
Equity-based compensation | 2,872 | 2,186 | 489 | 1,987 | ||||||||||||
Straight-line rent adjustment and amortization of lease incentives | (350 | ) | (224 | ) | (483 | ) | (231 | ) | ||||||||
Deferred income taxes | (36 | ) | 516 | 345 | (202 | ) | ||||||||||
Loss on disposal of equipment | 1,453 | 0— | ||||||||||||||
Changes in operating assets and liabilities | 11,681 | 2,714 | (3,322 | ) | 12,692 | |||||||||||
Total adjustments | 16,823 | 7,828 | (762 | ) | 15,994 | |||||||||||
Net cash and cash equivalents provided by (used in) operating activities | (40 | ) | 7,771 | (11,435 | ) | 3,364 | ||||||||||
Investing activities | ||||||||||||||||
Purchases of investments | (13,214 | ) | (17,071 | ) | (45,663 | ) | (10,163 | ) | ||||||||
Proceeds from sales and maturities of investments | 16,355 | 17,950 | 7,263 | 9,815 | ||||||||||||
Purchases of leasehold improvements and equipment | (773 | ) | (2,329 | ) | (888 | ) | (365 | ) | ||||||||
Net cash and cash equivalents provided by (used in) investing activities | 2,368 | (1,450 | ) | |||||||||||||
Net cash and cash equivalents used in investing activities | (39,288 | ) | (713 | ) | ||||||||||||
Financing activities | ||||||||||||||||
Net proceeds from issuance of common stock | 2,618 | 1,865 | 2,211 | 1,436 | ||||||||||||
Common stock repurchases | 0 | (393 | ) | |||||||||||||
Taxes paid related to net share settlement | (545 | ) | (364 | ) | (295 | ) | (532 | ) | ||||||||
Net cash and cash equivalents provided by financing activities | 2,073 | 1,108 | 1,916 | 904 | ||||||||||||
Effect of exchange rate changes on cash | (47 | ) | 49 | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (252 | ) | (40 | ) | ||||||||||||
Net increase in cash, cash equivalents and restricted cash | 4,354 | 7,478 | ||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | (49,059 | ) | 3,515 | |||||||||||||
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 | $ | 34,482 | $ | 28,032 | $ | 54,455 | $ | 33,643 | ||||||||
Non-cash investing and financing activity | ||||||||||||||||
Additions to right-of-use-assets | $ | 0 | $ | 128 | $ | 94 | $ | — | ||||||||
1. | Description of Business and Basis of Presentation |
2. | Divestiture and Discontinued Operations |
Three Months Ended | Six Months Ended | |||||||||||||||
July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | |||||||||||||
(In thousands) | ||||||||||||||||
Net revenues: | ||||||||||||||||
Systems and components | $ | — | $ | 5,282 | $ | — | $ | 9,103 | ||||||||
Technology development | — | 3,162 | — | 6,344 | ||||||||||||
Total net revenues | — | 8,444 | — | 15,447 | ||||||||||||
Cost of net revenues: | ||||||||||||||||
Systems and components | — | 4,261 | — | 7,121 | ||||||||||||
Technology development | — | 2,081 | — | 5,304 | ||||||||||||
Total cost of net revenues | — | 6,342 | — | 12,425 | ||||||||||||
Gross profit | — | 2,102 | — | 3,022 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | — | 776 | — | 1,036 | ||||||||||||
Selling, general and administrative | 238 | 1,328 | 373 | 2,924 | ||||||||||||
Total operating expenses | 238 | 2,104 | 373 | 3,960 | ||||||||||||
Operating loss – discontinued operations | (238 | ) | (2 | ) | (373 | ) | (938 | ) | ||||||||
Other income (expense) – discontinued operations | 0— | 0— | 0— | 0— | ||||||||||||
Loss from discontinued operations before provision for income taxes | (238 | ) | (2 | ) | (373 | ) | (938 | ) | ||||||||
Provision for income taxes | — | — | — | — | ||||||||||||
Net loss from discontinued operations, net of taxes | $ | (238 | ) | $ | (2 | ) | $ | (373 | ) | $ | (938 | ) | ||||
Three Months Ended | Six Months Ended | |||||||||||||||
July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | |||||||||||||
1 | 1 | |||||||||||||||
(In thousands) | ||||||||||||||||
Depreciation and amortization | $ | — | $ | 375 | $ | — | $ | 661 | ||||||||
Equity-based compensation | $ | 39 | $ | 247 | $ | (291 | ) | $ | 518 | |||||||
Purchase of leasehold improvements and equipment | $ | — | $ | 76 | $ | — | $ | 149 |
Revenue |
TFE | Three Months Ended October 2, 2021 | Three Months Ended September 26, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended July 2, 2022 | Three Months Ended July 3, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HDD | DCP | PV | ASP | Total | HDD | PV | Total | HDD | DCP | PV | Total | HDD | DCP | PV | Total | |||||||||||||||||||||||||||||||||||||||||||||||||
Systems, upgrades and spare parts | $ | 6,495 | $ | 0 | $ | 61 | $ | 0 | $ | 6,556 | $ | 7,601 | $ | 131 | $ | 7,732 | $ | 7,756 | $ | 1 | $ | 82 | $ | 7,839 | $ | 3,955 | $ | 3 | $ | 47 | $ | 4,005 | ||||||||||||||||||||||||||||||||
Field service | 1,424 | 0 | 18 | 0 | 1,442 | 1,635 | 0 | 1,635 | 1,421 | 43 | 4 | 1,468 | 1,364 | — | — | 1,364 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total TFE net revenues | $ | 7,919 | $ | 0 | $ | 79 | $ | 0 | $ | 7,998 | $ | 9,236 | $ | 131 | $ | 9,367 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total net revenues | $ | 9,177 | $ | 44 | $ | 86 | $ | 9,307 | $ | 5,319 | $ | 3 | $ | 47 | $ | 5,369 | ||||||||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||
Photonics | October 2, 2021 | September 26, 2020 | October 2, 2021 | September 26, 2020 | ||||||||||||
(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”) | 1,571 | 5,482 | 4,919 | 15,374 | ||||||||||||
Cost Plus Fixed Fee (“CPFF”) | 1,522 | 1,056 | 4,518 | 2,285 | ||||||||||||
Total technology development net revenues | 3,093 | 6,538 | 9,437 | 17,659 | ||||||||||||
Total Photonics net revenues | $ | 6,795 | $ | 12,198 | $ | 22,242 | $ | 35,323 | ||||||||
Six Months Ended July 2, 2022 | Six Months Ended July 3, 2021 | |||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||
HDD | DCP | PV | Total | HDD | DCP | PV | ASP | Total | ||||||||||||||||||||||||||||
Systems, upgrades and spare parts | $ | 10,879 | $ | 1 | $ | 135 | $ | 11,015 | $ | 7,539 | $ | 3 | $ | 158 | $ | 3,850 | $ | 11,550 | ||||||||||||||||||
Field service | 2,684 | 43 | 10 | 2,737 | 3,001 | 14 | 42 | — | 3,057 | |||||||||||||||||||||||||||
Total net revenues | $ | 13,563 | $ | 44 | $ | 145 | $ | 13,752 | $ | 10,540 | $ | 17 | $ | 200 | $ | 3,850 | $ | 14,607 | ||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||
October 2, 2021 | September 26, 2020 | |||||||||||||||||||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | |||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||
TFE | Photonics | Total | TFE | Photonics | Total | (In thousands) | ||||||||||||||||||||||||||||||||||
United States | $ | 220 | $ | 6,738 | $ | 6,958 | $ | 1,764 | $ | 12,079 | $ | 13,843 | $ | 1,656 | $ | 2,121 | $ | 1,950 | $ | 2,488 | ||||||||||||||||||||
Asia | 7,778 | 0 | 7,778 | 7,536 | 0 | 7,536 | 7,651 | 3,248 | 11,802 | 8,269 | ||||||||||||||||||||||||||||||
Europe | 0 | 57 | 57 | 67 | 119 | 186 | — | — | — | 3,850 | ||||||||||||||||||||||||||||||
Total net revenues | $ | 7,998 | $ | 6,795 | $ | 14,793 | $ | 9,367 | $ | 12,198 | $ | 21,565 | $ | 9,307 | $ | 5,369 | $ | 13,752 | $ | 14,607 | ||||||||||||||||||||
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 | Six Months Ended | |||||||||||||||||||||||||||||||||||||||
October 2, 2021 | September 26, 2020 | |||||||||||||||||||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | |||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||
TFE | Photonics | Total | TFE | Photonics | Total | (In thousands) | ||||||||||||||||||||||||||||||||||
Products transferred at a point in time | $ | 7,998 | $ | 259 | $ | 8,257 | $ | 9,367 | $ | 574 | $ | 9,941 | $ | 9,307 | $ | 5,369 | $ | 13,752 | $ | 14,607 | ||||||||||||||||||||
Products and services transferred over time | 0 | 6,536 | 6,536 | 0 | 11,624 | 11,624 | — | — | — | — | ||||||||||||||||||||||||||||||
Total net revenues | $ | 9,307 | $ | 5,369 | $ | 13,752 | $ | 14,607 | ||||||||||||||||||||||||||||||||
$ | 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 | |||||||||||||
October 2, 2021 | January 2, 2021 | Nine Months Change | July 2, 2022 | January 1, 2022 | Six Months Change | |||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||
TFE: | ||||||||||||||||||||||||
Contract assets: | ||||||||||||||||||||||||
Accounts receivable, unbilled | $ | 0 | $ | 369 | $ | (369 | ) | $ | — | $ | 99 | $ | (99 | ) | ||||||||||
Contract liabilities: | ||||||||||||||||||||||||
Deferred revenue | $ | 197 | $ | 482 | $ | (285 | ) | $ | 129 | $ | 65 | $ | 64 | |||||||||||
Customer advances | 24 | 33 | (9 | ) | 24,760 | 2,107 | 22,653 | |||||||||||||||||
$ | 221 | $ | 515 | $ | (294 | ) | $ | 24,889 | $ | 2,172 | $ | 22,717 | ||||||||||||
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 | ) | |||||||||||||||||
Inventories |
October 2, | January 2, | |||||||
2021 | 2021 | |||||||
(In thousands) | ||||||||
Raw materials | $ | 11,262 | $ | 9,999 | ||||
Work-in-progress | 6,929 | 4,832 | ||||||
Finished goods | 4,262 | 6,858 | ||||||
$ | 22,453 | $ | 21,689 | |||||
July 2, 2022 | January 1, 2022 | |||||||
(In thousands) | ||||||||
Raw materials | $ | 6,728 | $ | 5,323 | ||||
Work-in-progress | 5,043 | 468 | ||||||
$ | 11,771 | $ | 5,791 | |||||
Equity-Based Compensation |
Three Months Ended | Nine Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||
October 2, 2021 | September 26, 2020 | October 2, 2021 | September 26, 2020 | July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | |||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||
Equity-based compensation by type of award: | ||||||||||||||||||||||||||||||||
Stock options | $ | 27 | $ | 47 | $ | 159 | $ | 411 | $ | 8 | $ | 57 | $ | (163 | ) | $ | 132 | |||||||||||||||
RSUs | 673 | 495 | 1,872 | 1,311 | 1,295 | 656 | 567 | 1,200 | ||||||||||||||||||||||||
ESPP awards | 185 | 316 | 841 | 464 | ||||||||||||||||||||||||||||
ESPP purchase rights | 222 | 306 | 85 | 655 | ||||||||||||||||||||||||||||
Total equity-based compensation | $ | 885 | $ | 858 | $ | 2,872 | $ | 2,186 | $ | 1,525 | $ | 1,019 | $ | 489 | $ | 1,987 | ||||||||||||||||
(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 six months ended July 2, 2022. (See Note 13. Restructuring and Other Costs, Net.); and |
(b) | Equity-based compensation reported in discontinued operations of $39,000 and ($291,000) for the three and six months ended July 2, 2022, respectively, and $247,000 and $518,000 for the three and six months ended July 3, 2021, respectively. Equity-based compensation expense allocated to discontinued operations for the six months ended July 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 | |||||||
Options outstanding at January 2, 2021 | 1,814,467 | $ | 6.66 | |||||
Options granted | 0— | $ | 0— | |||||
Options cancelled and forfeited | (211,042 | ) | $ | 7.47 | ||||
Options exercised | (73,744 | ) | $ | 5.89 | ||||
Options outstanding at October 2, 2021 | 1,529,681 | $ | 6.57 | |||||
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 |
Shares | Weighted-Average Exercise Price | |||||||
Options outstanding at January 1, 2022 | 1,457,587 | $ | 6.55 | |||||
Options cancelled and forfeited | (550,332 | ) | $ | 7.31 | ||||
Options exercised | (313,000 | ) | $ | 4.83 | ||||
Options outstanding at July 2, 2022 | 594,255 | $ | 6.76 | |||||
Options exercisable at July 2, 2022 | 564,979 | $ | 6.82 | |||||
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 |
Six Months Ended | ||||||||
July 2, 2022 | July 3, 2021 | |||||||
ESPP Purchase Rights: | ||||||||
Weighted-average fair value of grants per share | $ | 1.85 | $ | 2.69 | ||||
Expected volatility | 60.36 | % | 58.56 | % | ||||
Risk-free interest rate | 0.98 | % | 0.08 | % | ||||
Expected term of purchase rights (in years) | 1.2 | 1.0 | ||||||
Dividend yield | NaN | NaN |
Shares | Weighted-Average Grant Date Fair Value | Shares | Weighted-Average Grant Date Fair Value | |||||||||||||
Non-vested RSUs at January 2, 2021 | 901,634 | $ | 5.30 | |||||||||||||
Non-vested RSUs at January 1, 2022 | 1,033,436 | $ | 5.59 | |||||||||||||
Granted | 590,931 | $ | 6.18 | 1,756,267 | $ | 4.36 | ||||||||||
Vested | (301,305 | ) | $ | 6.07 | (211,889 | ) | $ | 5.47 | ||||||||
Cancelled and forfeited | (82,529 | ) | $ | 4.66 | (533,199 | ) | $ | 5.65 | ||||||||
Non-vested RSUs at October 2, 2021 | 1,108,731 | $ | 5.60 | |||||||||||||
Non-vested RSUs at July 2, 2022 | 2,044,615 | $ | 4.53 | |||||||||||||
Three Months Ended | ||||
July 2, 2022 | ||||
Weighted-average fair value of grants per share | $ | 3.67 | ||
Expected volatility | 54.42 | % | ||
Risk-free interest rate | 2.82 | % | ||
Dividend yield | NaN |
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 | Three Months Ended | |||||||
September 26, 2020 | July 3, 2021 | |||||||
Weighted-average fair value of grants per share | $ | 3.16 | $ | 7.65 | ||||
Expected volatility | 46.7 | % | 56.26 | % | ||||
Risk-free interest rate | 0.25 | % | 0.15 | % | ||||
Dividend yield | NaN | NaN |
Warranty |
Three Months Ended | Nine Months Ended | |||||||||||||||
October 2, 2021 | September 26, 2020 | October 2, 2021 | September 26, 2020 | |||||||||||||
(In thousands) | ||||||||||||||||
Opening balance | $ | 572 | $ | 662 | $ | 480 | $ | 1,022 | ||||||||
Expenditures incurred under warranties | (148 | ) | (89 | ) | (564 | ) | (398 | ) | ||||||||
Accruals for product warranties issued during the reporting period | 80 | 39 | 553 | 198 | ||||||||||||
Adjustments to previously existing warranty accruals | 106 | (57 | ) | 141 | (267 | ) | ||||||||||
Closing balance | $ | 610 | $ | 555 | $ | 610 | $ | 555 | ||||||||
October 2, 2021 | January 2, 2021 | |||||||
(In thousands) | ||||||||
Other accrued liabilities | $ | 542 | $ | 405 | ||||
Other long-term liabilities | 68 | 75 | ||||||
Total warranty provision | $ | 610 | $ | 480 | ||||
Three Months Ended | Six Months Ended | |||||||||||||||
July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | |||||||||||||
(In thousands) | ||||||||||||||||
Opening balance | $ | 249 | $ | 590 | $ | 346 | $ | 480 | ||||||||
Expenditures incurred under warranties | (54 | ) | (195 | ) | (225 | ) | (346 | ) | ||||||||
Expenditures incurred under warranties included in discontinued operations | — | (22 | ) | — | (69 | ) | ||||||||||
Accruals for product warranties issued during the reporting period | 36 | 155 | 72 | 410 | ||||||||||||
Accruals for product warranties issued during the reporting period included in discontinued operations | — | 43 | — | 63 | ||||||||||||
Adjustments to previously existing warranty accruals | (17 | ) | (15 | ) | 21 | (25 | ) | |||||||||
Adjustments to previously existing warranty accruals included in discontinued operations | — | 16 | — | 59 | ||||||||||||
Closing balance | $ | 214 | $ | 572 | $ | 214 | $ | 572 | ||||||||
July 2 2022 | January 1 2022 | |||||||
(In thousands) | ||||||||
Other accrued liabilities | $ | 199 | $ | 301 | ||||
Other long-term liabilities | 15 | 45 | ||||||
Total warranty provision | $ | 214 | $ | 346 | ||||
Guarantees |
Cash, Cash Equivalents and Investments |
October 2, 2021 | ||||||||||||||||
Amortized Cost | Unrealized Holding Gains | Unrealized Holding Losses | Fair Value | |||||||||||||
(In thousands) | ||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Cash | $ | 28,749 | $ | — | $ | — | $ | 28,749 | ||||||||
Money market funds | 4,447 | — | — | 4,447 | ||||||||||||
Municipal bonds | 500 | — | — | 500 | ||||||||||||
Total cash and cash equivalents | $ | 33,696 | $ | — | $ | — | $ | 33,696 | ||||||||
Short-term investments: | ||||||||||||||||
Certificates of deposit | $ | 6,299 | $ | 3 | $ | — | $ | 6,302 | ||||||||
Commercial paper | 400 | — | — | 400 | ||||||||||||
Corporate bonds and medium-term notes | 2,919 | 1 | — | 2,920 | ||||||||||||
Municipal bonds | 515 | — | — | 515 | ||||||||||||
U.S. treasury and agency securities | 1,000 | — | — | 1,000 | ||||||||||||
Total short-term investments | $ | 11,133 | $ | 4 | $ | — | $ | 11,137 | ||||||||
Long-term investments: | ||||||||||||||||
Asset backed securities | $ | 480 | $ | — | $ | — | $ | 480 | ||||||||
Certificates of deposit | 500 | — | 1 | 499 | ||||||||||||
Corporate bonds and medium-term notes | 2,541 | 1 | 1 | 2,541 | ||||||||||||
Municipal bonds | 145 | — | 1 | 144 | ||||||||||||
U.S. treasury and agency securities | 2,161 | — | — | 2,161 | ||||||||||||
Total long-term investments | $ | 5,827 | $ | 1 | $ | 3 | $ | 5,825 | ||||||||
Total cash, cash equivalents, and investments | $ | 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 | |||||||
(In thousands) | ||||||||
Due in one year or less | $ | 16,080 | $ | 16,084 | ||||
Due after one through three years | 5,827 | 5,825 | ||||||
$ | 21,907 | $ | 21,909 | |||||
July 2, 2022 | ||||||||||||||||
Amortized Cost | Unrealized Holding Gains | Unrealized Holding Losses | Fair Value | |||||||||||||
(In thousands) | ||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Cash | $ | 46,732 | $ | — | $ | — | $ | 46,732 | ||||||||
Money market funds | 3,591 | — | — | 3,591 | ||||||||||||
Commercial paper | 3,348 | — | 2 | 3,346 | ||||||||||||
Total cash and cash equivalents | $ | 53,671 | $ | — | $ | 2 | $ | 53,669 | ||||||||
Short-term investments: | ||||||||||||||||
Asset backed securities | $ | 1,003 | $ | — | $ | 2 | $ | 1,001 | ||||||||
Certificates of deposit | 7,850 | — | 23 | 7,827 | ||||||||||||
Commercial paper | 14,586 | 2 | 37 | 14,551 | ||||||||||||
Corporate bonds and medium-term notes | 4,725 | — | 52 | 4,673 | ||||||||||||
Municipal bonds | 493 | — | 7 | 486 | ||||||||||||
U.S. treasury securities | 2,661 | — | 31 | 2,630 | ||||||||||||
Total short-term investments | $ | 31,318 | $ | 2 | $ | 152 | $ | 31,168 | ||||||||
Long-term investments: | ||||||||||||||||
Asset backed securities | $ | 9,876 | $ | — | $ | 80 | $ | 9,796 | ||||||||
Corporate bonds and medium-term notes | 5,204 | 7 | 32 | 5,179 | ||||||||||||
Municipal bonds | 1,212 | — | 9 | 1,203 | ||||||||||||
U.S. treasury and agency securities | 8,486 | — | 99 | 8,387 | ||||||||||||
Total long-term investments | $ | 24,778 | $ | 7 | $ | 220 | $ | 24,565 | ||||||||
Total cash, cash equivalents, and investments | $ | 109,767 | $ | 9 | $ | 374 | $ | 109,402 | ||||||||
October 2, 2021 | January 1, 2022 | |||||||||||||||||||||||||||||||
In Loss Position for Less than 12 Months | In Loss Position for Greater than 12 Months | Amortized Cost | Unrealized Holding Gains | Unrealized Holding Losses | Fair Value | |||||||||||||||||||||||||||
Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | (In thousands) | ||||||||||||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||||||||||||||
Cash | $ | 102,494 | $ | — | $ | — | $ | 102,494 | ||||||||||||||||||||||||
Money market funds | 234 | — | — | 234 | ||||||||||||||||||||||||||||
Total cash and cash equivalents | $ | 102,728 | $ | — | $ | — | $ | 102,728 | ||||||||||||||||||||||||
Short-term investments: | ||||||||||||||||||||||||||||||||
Certificates of deposit | $ | 4,300 | $ | — | $ | — | $ | 4,300 | ||||||||||||||||||||||||
Commercial paper | 400 | — | — | 400 | ||||||||||||||||||||||||||||
Corporate bonds and medium-term notes | 2,916 | — | 3 | 2,913 | ||||||||||||||||||||||||||||
Municipal bonds | 700 | — | — | 700 | ||||||||||||||||||||||||||||
U.S. treasury securities | 1,910 | — | 2 | 1,908 | ||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Total short-term investments | $ | 10,226 | $ | — | $ | 5 | $ | 10,221 | ||||||||||||||||||||||||
Long-term investments: | ||||||||||||||||||||||||||||||||
Asset backed securities | $ | 2,040 | $ | — | $ | 3 | $ | 2,037 | ||||||||||||||||||||||||
Certificates of deposit | $ | 499 | $ | 1 | $ | 0 | $ | 0 | 500 | — | 3 | 497 | ||||||||||||||||||||
Corporate bonds and medium-term notes | 1,944 | 1 | 0 | 0 | 1,521 | — | 6 | 1,515 | ||||||||||||||||||||||||
Municipal bond | 145 | 1 | 0 | 0 | ||||||||||||||||||||||||||||
Municipal bonds | 145 | — | 1 | 144 | ||||||||||||||||||||||||||||
U.S. treasury securities | 3,246 | — | 12 | 3,234 | ||||||||||||||||||||||||||||
Total long-term investments | $ | 7,452 | $ | — | $ | 25 | $ | 7,427 | ||||||||||||||||||||||||
$ | 2,588 | $ | 3 | $ | 0 | $ | 0 | |||||||||||||||||||||||||
Total cash, cash equivalents, and investments | $ | 120,406 | $ | — | $ | 30 | $ | 120,376 | ||||||||||||||||||||||||
Amortized Cost | Fair Value | |||||||
(In thousands) | ||||||||
Due in one year or less | $ | 38,257 | $ | 38,105 | ||||
Due after one through five years | 24,778 | 24,565 | ||||||
$ | 63,035 | $ | 62,670 | |||||
July 2, 2022 | ||||||||||||||||
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) | ||||||||||||||||
Asset backed securities | $ | 10,180 | $ | 82 | $ | — | $ | — | ||||||||
Certificates of deposit | 6,827 | 23 | — | — | ||||||||||||
Commercial paper | 15,932 | 39 | — | — | ||||||||||||
Corporate bonds and medium-term notes | 8,345 | 80 | 500 | 4 | ||||||||||||
Municipal bonds | 1,698 | 16 | — | — | ||||||||||||
U.S. treasury and agency securities | 11,017 | 130 | — | — | ||||||||||||
$ | 53,990 | $ | 370 | $ | 500 | $ | 4 | |||||||||
Fair Value Measurements at October 2, 2021 | ||||||||||||
Total | Level 1 | Level 2 | ||||||||||
(In thousands) | ||||||||||||
Recurring fair value measurements: | ||||||||||||
Available-for-sale | ||||||||||||
Money market funds | $ | 4,447 | $ | 4,447 | $ | — | ||||||
U.S. treasury and agency securities | 3,161 | 3,161 | — | |||||||||
Asset backed securities | 480 | — | 480 | |||||||||
Certificates of deposit | 6,801 | — | 6,801 | |||||||||
Commercial paper | 400 | — | 400 | |||||||||
Corporate bonds and medium-term notes | 5,461 | — | 5,461 | |||||||||
Municipal bonds | 1,159 | — | 1,159 | |||||||||
Total recurring fair value measurements | $ | 21,909 | $ | 7,608 | $ | 14,301 | ||||||
9. Derivative Instruments |
Notional Amounts | Derivative Liabilities | |||||||||||||||||||||||
Derivative Instrument | October 2 2021 | January 2, 2021 | October 2, 2021 | January 2, 2021 | ||||||||||||||||||||
Balance Sheet Line | Fair Value | Balance Sheet Line | Fair Value | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Undesignated Hedges: | ||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 811 | $ | 983 | (a | ) | $ | 2 | (a | ) | $ | 3 | ||||||||||||
Total Hedges | $ | 811 | $ | 983 | $ | 2 | $ | 3 | ||||||||||||||||
Notional Amounts | Derivative Liabilities | Derivative Assets | ||||||||||||||||||||||
Derivative Instrument | July 2, 2022 | January 1, 2022 | July 2, 2022 | January 1, 2022 | ||||||||||||||||||||
Balance Sheet Line | Fair Value | Balance Sheet Line | Fair Value | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Undesignated Hedges: | ||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 1,074 | $ | 815 | (b) | $ | 11 | (a) | $ | 14 | ||||||||||||||
Total Hedges | $ | 1,074 | $ | 815 | $ | 11 | $ | 14 | ||||||||||||||||
(a) | Other current assets |
(b) | Other accrued liabilities |
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 | Nine Months Ended | |||||||||||||||||||||||
October 2, 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 | $ | 562 | $ | 9 | $ | 571 | $ | 602 | $ | 38 | $ | 640 | ||||||||||||
Other comprehensive loss before reclassification | (7 | ) | (7 | ) | (14 | ) | (47 | ) | (36 | ) | (83 | ) | ||||||||||||
Amounts reclassified from other comprehensive income (loss) | — | — | — | — | — | — | ||||||||||||||||||
Net current-period other comprehensive loss | (7 | ) | (7 | ) | (14 | ) | (47 | ) | (36 | ) | (83 | ) | ||||||||||||
Ending balance | $ | 555 | $ | 2 | $ | 557 | $ | 555 | $ | 2 | $ | 557 | ||||||||||||
Three Months Ended July 2, 2022 | ||||||||||||||||||||
Common Stock and Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total Stockholders’ Equity | ||||||||||||||||
Balance at April 2, 2022 | $ | 198,960 | $ | (29,551 | ) | $ | 371 | $ | (43,965 | ) | $ | 125,815 | ||||||||
Common stock issued under employee plans | 1,178 | — | — | — | 1,178 | |||||||||||||||
Shares withheld for net share settlement of RSUs | (160 | ) | — | — | — | (160 | ) | |||||||||||||
Equity-based compensation expense | 1,525 | — | — | — | 1,525 | |||||||||||||||
Net loss | — | — | — | (2,818 | ) | (2,818 | ) | |||||||||||||
Other comprehensive loss | — | — | (380 | ) | — | (380 | ) | |||||||||||||
Balance at July 2, 2022 | $ | 201,503 | $ | (29,551 | ) | $ | (9 | ) | $ | (46,783 | ) | $ | 125,160 | |||||||
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 | ||||||||||||
Six Months Ended July 2, 2022 | ||||||||||||||||||||
Common Stock and Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | 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 | 2,211 | — | — | — | 2,211 | |||||||||||||||
Shares withheld for net share settlement of RSUs | (295 | ) | — | — | — | (295 | ) | |||||||||||||
Equity-based compensation expense | 489 | — | — | — | �� | 489 | ||||||||||||||
Net loss | — | — | — | (10,673 | ) | (10,673 | ) | |||||||||||||
Other comprehensive loss | — | — | (587 | ) | — | (587 | ) | |||||||||||||
Balance at July 2, 2022 | $ | 201,503 | $ | (29,551 | ) | $ | (9 | ) | $ | (46,783 | ) | $ | 125,160 | |||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
October 2, 2021 | September 26, 2020 | October 2, 2021 | September 26, 2020 | |||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Shares of common stock repurchased | 0 | 0 | 0 | 98 | ||||||||||||
Cost of stock repurchased | $ | 0 | $ | 0 | $ | 0 | $ | 393 | ||||||||
Average price paid per share | $ | 0 | $ | 0 | $ | 0 | $ | 3.97 |
Three Months Ended July 3, 2021 | ||||||||||||||||||||
Common Stock and Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income | Accumulated Deficit | Total Stockholders’ Equity | ||||||||||||||||
Balance at April 3, 2021 | $ | 195,388 | $ | (29,551 | ) | $ | 552 | $ | (69,234 | ) | $ | 97,155 | ||||||||
Common stock issued under employee plans | 193 | — | — | — | 193 | |||||||||||||||
Shares withheld for net share settlement of RSUs | (512 | ) | — | — | — | (512 | ) | |||||||||||||
Equity-based compensation expense | 1,019 | — | — | — | 1,019 | |||||||||||||||
Net loss | — | — | — | (6,126 | ) | (6,126 | ) | |||||||||||||
Other comprehensive income | — | — | 19 | — | 19 | |||||||||||||||
Balance at July 3, 2021 | $ | 196,088 | $ | (29,551 | ) | $ | 571 | $ | (75,360 | ) | $ | 91,748 | ||||||||
Six Months Ended July 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 | 1,436 | — | — | — | 1,436 | |||||||||||||||
Shares withheld for net share settlement of RSUs | (532 | ) | — | — | — | (532 | ) | |||||||||||||
Equity-based compensation expense | 1,987 | — | — | — | 1,987 | |||||||||||||||
Net loss | — | — | — | (12,630 | ) | (12,630 | ) | |||||||||||||
Other comprehensive loss | — | — | (69 | ) | — | (69 | ) | |||||||||||||
Balance at July 3, 2021 | $ | 196,088 | $ | (29,551 | ) | $ | 571 | $ | (75,360 | ) | $ | 91,748 | ||||||||
11. Net Loss Per Share |
Three Months Ended | Nine Months Ended | |||||||||||||||
October 2, 2021 | September 26, 2020 | October 2, 2021 | September 26, 2020 | |||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Net loss | $ | (4,233 | ) | $ | (357 | ) | $ | (16,863 | ) | $ | (57 | ) | ||||
Weighted-average shares – basic | 24,522 | 23,771 | 24,265 | 23,605 | ||||||||||||
Effect of dilutive potential common shares | 0 | 0 | 0 | 0 | ||||||||||||
Weighted-average shares – diluted | 24,522 | 23,771 | 24,265 | 23,605 | ||||||||||||
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 | ) | ||||
Three Months Ended | Six Months Ended | |||||||||||||||
July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | |||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Net loss from continuing operations | $ | (2,580 | ) | $ | (6,124 | ) | $ | (10,300 | ) | $ | (11,692 | ) | ||||
Net loss from discontinued operations, net of taxes | $ | (238 | ) | $ | (2 | ) | $ | (373 | ) | $ | (938 | ) | ||||
Net loss | $ | (2,818 | ) | $ | (6,126 | ) | $ | (10,673 | ) | $ | (12,630 | ) | ||||
Weighted-average shares – basic | 25,141 | 24,241 | 24,970 | 24,137 | ||||||||||||
Effect of dilutive potential common shares | — | — | — | — | ||||||||||||
Weighted-average shares – diluted | 25,141 | 24,241 | 24,970 | 24,137 | ||||||||||||
Basic and diluted net loss per share: | ||||||||||||||||
Continuing operations | $ | (0.10 | ) | $ | (0.25 | ) | $ | (0.41 | ) | $ | (0.48 | ) | ||||
Discontinued operations | $ | (0.01 | ) | $ | (0.00 | ) | $ | (0.01 | ) | $ | (0.04 | ) | ||||
Net loss per share | $ | (0.11 | ) | $ | (0.25 | ) | $ | (0.43 | ) | $ | (0.52 | ) | ||||
Three Months Ended | Nine Months Ended | |||||||||||||||
October 2, 2021 | September 26, 2020 | October 2, 2021 | September 26, 2020 | |||||||||||||
(In thousands) | ||||||||||||||||
TFE | $ | 7,998 | $ | 9,367 | $ | 22,605 | $ | 33,925 | ||||||||
Photonics | 6,795 | 12,198 | 22,242 | 35,323 | ||||||||||||
Total segment net revenues | $ | 14,793 | $ | 21,565 | $ | 44,847 | $ | 69,248 | ||||||||
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 | |||||||
(In thousands) | ||||||||
TFE | $ | 33,411 | $ | 44,335 | ||||
Photonics | 16,810 | 22,923 | ||||||
Total segment assets | 50,221 | 67,258 | ||||||
Cash, cash equivalents and investments | 50,658 | 49,568 | ||||||
Restricted cash | 786 | 787 | ||||||
Deferred income taxes | 5,371 | 5,335 | ||||||
Other current assets | 907 | 1,093 | ||||||
Common property, plant and equipment | 1,100 | 1,443 | ||||||
Common operating lease right-of-use | 1,267 | 1,603 | ||||||
Other assets | 183 | 151 | ||||||
Consolidated total assets | $ | 110,493 | $ | 127,238 | ||||
Employee Termination Costs | ||||
(In thousands) | ||||
Balance at January 1, 2022 | $ | — | ||
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 | 512 | |||
Cash payments made | (179 | ) | ||
Balance at July 2, 2022 (b) | $ | 333 | ||
(a) | Acceleration of equity awards. |
(b) | Liability for employee termination costs is included in accrued payroll and related liabilities. |
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 | ) | — | (75 | ) | |||||||
Balance at April 2, 2022 | $ | 258 | $ | 539 | $ | 797 | ||||||
Provision for restructuring charges associated with Photonics divestiture (a) | — | 4 | 4 | |||||||||
Cash payments made | (90 | ) | (77 | ) | (167 | ) | ||||||
Balance at July 2, 2022 | $ | 168 | (c) | $ | 466 | $ | 634 | |||||
(b) | Acceleration of equity awards. |
(c) | Liability for employee termination costs is included in accrued payroll and related liabilities. |
Three Months Ended October 2, 2021 | Nine Months Ended October 2, 2021 | Three and Nine Months Ended September 26, 2020 | ||||||||||
(In thousands) | ||||||||||||
Severance and other employee-related costs | ||||||||||||
Beginning balance | $ | — | $ | — | $ | — | ||||||
Provision for restructuring reserves | 276 | 319 | 103 | |||||||||
Cash payments made | (276 | ) | (319 | ) | (103 | ) | ||||||
Ending balance | $ | — | $ | — | $ | — | ||||||
Ended July 3, 2021 | ||||
(In thousands) | ||||
Beginning balance | $ | — | ||
Provision for restructuring reserves | 43 | |||
Cash payments made | (43 | ) | ||
Ending balance | $ | — | ||
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 | Six months ended | |||||||||||||||||||||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | Change over prior period | July 2, 2022 | July 3, 2021 | Change over prior period | |||||||||||||||||||||||||||||||||||||||||||
(In thousands, except percentages and per share amounts) | ||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands, except percentages and per share amounts) | ||||||||||||||||||||||||||||||||||||||||||||||||
Net revenues | $ | 14,793 | $ | 21,565 | $ | (6,772 | ) | $ | 44,847 | $ | 69,248 | $ | (24,401 | ) | $ | 9,307 | $ | 5,369 | $ | 3,938 | $ | 13,752 | $ | 14,607 | $ | (855 | ) | |||||||||||||||||||||
Gross profit | $ | 5,527 | $ | 9,300 | $ | (3,773 | ) | $ | 11,689 | $ | 28,876 | $ | (17,187 | ) | $ | 4,487 | $ | 1,006 | $ | 3,481 | $ | 5,209 | $ | 3,140 | $ | 2,069 | ||||||||||||||||||||||
Gross margin percent | 37.4 | % | 43.1 | % | (5.7) points | 26.1 | % | 41.7 | % | (15.6)points | 48.2 | % | 18.7 | % | 29 points | 37.9 | % | 21.5 | % | 16 points | ||||||||||||||||||||||||||||
Income (loss) from operations | $ | (3,968 | ) | $ | (148 | ) | $ | (3,820 | ) | $ | (16,781 | ) | $ | 856 | $ | (17,637 | ) | |||||||||||||||||||||||||||||||
Loss from operations | $ | (2,397 | ) | $ | (6,309 | ) | $ | 3,912 | $ | (10,084 | ) | $ | (11,874 | ) | $ | 1,790 | ||||||||||||||||||||||||||||||||
Loss from continuing operations | $ | (2,580 | ) | $ | (6,124 | ) | $ | 3,544 | $ | (10,300 | ) | $ | (11,692 | ) | $ | 1,392 | ||||||||||||||||||||||||||||||||
Loss from discontinued operations | $ | (238 | ) | $ | (2 | ) | $ | (236 | ) | $ | (373 | ) | $ | (938 | ) | $ | 565 | |||||||||||||||||||||||||||||||
Net loss | $ | (4,233 | ) | $ | (357 | ) | $ | (3,876 | ) | $ | (16,863 | ) | $ | (57 | ) | �� | $ | (16,806 | ) | $ | (2,818 | ) | $ | (6,126 | ) | $ | 3,308 | $ | (10,673 | ) | $ | (12,630 | ) | $ | 1,957 | |||||||||||||
Net loss per diluted share | $ | (0.17 | ) | $ | (0.02 | ) | $ | (0.15 | ) | $ | (0.69 | ) | $ | (0.00 | ) | $ | (0.69 | ) | $ | (0.11 | ) | $ | (0.25 | ) | $ | 0.14 | $ | (0.43 | ) | $ | (0.52 | ) | $ | 0.09 |
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) | ||||||||||||||||||||||||
TFE | $ | 7,998 | $ | 9,367 | $ | (1,369 | ) | $ | 22,605 | $ | 33,925 | $ | (11,320 | ) | ||||||||||
Photonics: | ||||||||||||||||||||||||
Contract R&D | 3,093 | 6,538 | (3,445 | ) | 9,437 | 17,659 | (8,222 | ) | ||||||||||||||||
Products | 3,702 | 5,660 | (1,958 | ) | 12,805 | 17,664 | (4,859 | ) | ||||||||||||||||
6,795 | 12,198 | (5,403 | ) | 22,242 | 35,323 | (13,081 | ) | |||||||||||||||||
Total net revenues | $ | 14,793 | $ | 21,565 | $ | (6,772 | ) | $ | 44,847 | $ | 69,248 | $ | (24,401 | ) | ||||||||||
Three months ended | Six months ended | |||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | Change over prior period | July 2, 2022 | July 3, 2021 | Change over prior period | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Net revenues | $ | 9,307 | $ | 5,369 | $ | 3,938 | $ | 13,752 | $ | 14,607 | $ | (855 | ) | |||||||||||
October 2, 2021 | January 2, 2021 | September 26, 2020 | ||||||||||
(In thousands) | ||||||||||||
TFE | $ | 16,925 | $ | 5,623 | $ | 18,092 | ||||||
Photonics | 27,942 | 41,317 | 45,159 | |||||||||
Total backlog | $ | 44,867 | $ | 46,940 | $ | 63,251 | ||||||
July 2, 2022 | January 1, 2022 | July 3, 2021 | ||||||||||
(In thousands) | ||||||||||||
Backlog | $ | 100,194 | $ | 24,725 | $ | 18,943 | ||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||||||||||||||
October 2, 2021 | September 26, 2020 | |||||||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||
(In thousands) | July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | ||||||||||||||||||||||||||||||||||||
TFE | Photonics | Total | TFE | Photonics | Total | |||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||
United States | $ | 220 | $ | 6,738 | $ | 6,958 | $ | 1,764 | $ | 12,079 | $ | 13,843 | $ | 1,656 | $ | 2,121 | $ | 1,950 | $ | 2,488 | ||||||||||||||||||||
Asia | 7,778 | — | 7,778 | 7,536 | — | 7,536 | 7,651 | 3,248 | 11,802 | 8,269 | ||||||||||||||||||||||||||||||
Europe | — | 57 | 57 | 67 | 119 | 186 | — | — | — | 3,850 | ||||||||||||||||||||||||||||||
Total net revenues | $ | 7,998 | $ | 6,795 | $ | 14,793 | $ | 9,367 | $ | 12,198 | $ | 21,565 | $ | 9,307 | $ | 5,369 | $ | 13,752 | $ | 14,607 | ||||||||||||||||||||
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 | |||||||||||||||||||||||
October 2, 2021 | September 26, 2020 | Change over prior period | October 2, 2021 | September 26, 2020 | Change over prior period | |||||||||||||||||||
(In thousands, except percentages) | ||||||||||||||||||||||||
TFE gross profit | $ | 3,350 | $ | 4,075 | $ | (725 | ) | $ | 6,491 | $ | 13,622 | $ | (7,131 | ) | ||||||||||
% of TFE net revenues | 41.9 | % | 43.5 | % | 28.7 | % | 40.2 | % | ||||||||||||||||
Photonics gross profit | $ | 2,177 | $ | 5,225 | $ | (3,048 | ) | $ | 5,198 | $ | 15,254 | $ | (10,056 | ) | ||||||||||
% of Photonics net revenues | 32.0 | % | 42.8 | % | 23.4 | % | 43.2 | % | ||||||||||||||||
Total gross profit | $ | 5,527 | $ | 9,300 | $ | (3,773 | ) | $ | 11,689 | $ | 28,876 | $ | (17,187 | ) | ||||||||||
% of net revenues | 37.4 | % | 43.1 | % | 26.1 | % | 41.7 | % |
Three months ended | Six months ended | |||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | Change over prior period | July 2, 2022 | July 3, 2021 | Change over prior period | |||||||||||||||||||
(In thousands, except percentages) | ||||||||||||||||||||||||
Gross profit | $ | 4,487 | $ | 1,006 | $ | 3,481 | $ | 5,209 | $ | 3,140 | $ | 2,069 | ||||||||||||
% of net revenues | 48.2 | % | 18.7 | % | 37.9 | % | 21.5 | % |
Three months ended | Six months ended | |||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | Change over prior period | July 2, 2022 | July 3, 2021 | Change over prior period | |||||||||||||||||||
1 | ||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Research and development expense | $ | 2,868 | $ | 3,118 | $ | (250 | ) | $ | 7,028 | $ | 6,483 | $ | 545 |
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 | 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 | Six months ended | |||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | Change over prior period | July 2, 2022 | July 3, 2021 | Change over prior period | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Selling, general and administrative expense | $ | 4,016 | $ | 4,197 | $ | (181 | ) | $ | 8,265 | $ | 8,531 | $ | (266 | ) |
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 | Six months ended | |||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | Change over prior period | July 2, 2022 | July 3, 2021 | Change over prior period | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Interest income and other, income (expense), net | $ | 317 | $ | 20 | $ | 297 | $ | 310 | $ | 50 | $ | 260 |
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 | ) |
Three months ended | Six months ended | |||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | Change over prior period | July 2, 2022 | July 3, 2021 | Change over prior period | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Provision for (benefit from) income taxes | $ | 500 | $ | (165 | ) | $ | 665 | $ | 526 | $ | (132 | ) | $ | 658 |
Three months ended | Six months ended | |||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | Change over prior period | July 2, 2022 | July 3, 2021 | Change over prior period | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Loss from discontinued operations, net of taxes | $ | 238 | $ | 2 | $ | 236 | $ | 373 | $ | 938 | $ | (565 | ) |
October 2, 2021 | January 2, 2021 | July 2, 2022 | January 1, 2022 | |||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
Cash and cash equivalents | $ | 33,696 | $ | 29,341 | $ | 53,669 | $ | 102,728 | ||||||||
Restricted cash | 786 | 787 | 786 | 786 | ||||||||||||
Short-term investments | 11,137 | 14,839 | 31,168 | 10,221 | ||||||||||||
Long-term investments | 5,825 | 5,388 | 24,565 | 7,427 | ||||||||||||
Total cash, cash equivalents, restricted cash and investments | $ | 51,444 | $ | 50,355 | $ | 110,188 | $ | 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 |
Exhibit Number | Description | |
10.1 | Form of PRSU Award Agreement (Company Stock Price Hurdle) under the 2022 Inducement Equity Incentive Plan* | |
10.2 | Form of PRSU Award Agreement (Company Stock Price Hurdle) under the 2020 Equity Incentive Plan* | |
10.3 | Consulting Agreement with Mark Popovich | |
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, Treasurer and | |
32.1 | Certifications Pursuant to U.S.C. 1350 Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
101.SCH | Inline XBRL Schema Document | |
101.CAL | Inline XBRL Calculation Linkbase Document | |
101.DEF | Inline XBRL Definition Linkbase Document | |
101.LAB | Inline XBRL Label Linkbase Document | |
101.PRE | Inline XBRL Presentation Linkbase Document | |
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
* | Previously filed as an exhibit to the Company’s Report on Form 8-K filed May 19, 2022. |
** | 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. |
Date: | ||||||||
By: | /s/ | |||||||
President and Chief Executive Officer | ||||||||
Date: | ||||||||
By: | /s/ JAMES MONIZ | |||||||
James Moniz | ||||||||
Executive Vice President, Finance and Administration, | ||||||||
Chief Financial Officer, Secretary and Treasurer | ||||||||