Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 25, 2022 | Jul. 27, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 25, 2022 | |
Document Transition Report | false | |
Entity File Number | 000-50307 | |
Entity Registrant Name | FormFactor, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 13-3711155 | |
Entity Address, Address Line One | 7005 Southfront Road | |
Entity Address, City or Town | Livermore | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94551 | |
City Area Code | 925 | |
Local Phone Number | 290-4000 | |
Title of 12(b) Security | Common stock, $0.001 par value | |
Trading Symbol | FORM | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 77,132,681 | |
Amendment Flag | false | |
Entity Central Index Key | 0001039399 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 25, 2022 | Dec. 25, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 136,395 | $ 151,010 |
Marketable securities | 129,919 | 125,055 |
Accounts receivable, net of allowance for credit losses of $193 and $195 | 107,726 | 115,541 |
Inventories, net | 143,475 | 111,548 |
Restricted cash | 2,102 | 2,233 |
Prepaid expenses and other current assets | 17,447 | 18,652 |
Total current assets | 537,064 | 524,039 |
Restricted cash | 1,802 | 2,099 |
Operating lease, right-of-use-assets | 33,499 | 35,210 |
Property, plant and equipment, net of accumulated depreciation | 157,814 | 146,555 |
Goodwill | 212,357 | 212,299 |
Intangibles, net | 30,872 | 36,342 |
Deferred tax assets | 65,059 | 61,995 |
Other assets | 3,980 | 1,981 |
Total assets | 1,042,447 | 1,020,520 |
Current liabilities: | ||
Accounts payable | 60,927 | 57,862 |
Accrued liabilities | 54,835 | 50,836 |
Current portion of term loans, net of unamortized issuance costs | 4,725 | 8,931 |
Deferred revenue | 31,255 | 23,224 |
Operating lease liabilities | 7,843 | 7,901 |
Total current liabilities | 159,585 | 148,754 |
Term loans, less current portion, net of unamortized issuance costs | 14,915 | 15,434 |
Deferred tax liabilities | 2,909 | 3,623 |
Long-term operating lease liabilities | 29,511 | 31,009 |
Other liabilities | 5,542 | 5,920 |
Total liabilities | 212,462 | 204,740 |
Stockholders’ equity: | ||
Common stock, $0.001 par value | 77 | 78 |
Additional paid-in capital | 860,584 | 898,945 |
Accumulated other comprehensive loss | (8,996) | (1,449) |
Accumulated deficit | (21,680) | (81,794) |
Total stockholders’ equity | 829,985 | 815,780 |
Total liabilities and stockholders’ equity | $ 1,042,447 | $ 1,020,520 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 25, 2022 | Dec. 25, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 193 | $ 195 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (in shares) | 77,194,733 | 78,240,506 |
Common stock, shares outstanding (in shares) | 77,194,733 | 78,240,506 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2022 | Jun. 26, 2021 | Jun. 25, 2022 | Jun. 26, 2021 | |
Income Statement [Abstract] | ||||
Revenues | $ 203,907 | $ 188,076 | $ 401,081 | $ 374,712 |
Cost of revenues | 109,538 | 111,793 | 212,488 | 221,723 |
Gross profit | 94,369 | 76,283 | 188,593 | 152,989 |
Operating expenses: | ||||
Research and development | 28,317 | 25,454 | 55,451 | 49,500 |
Selling, general and administrative | 33,406 | 30,479 | 66,312 | 60,494 |
Total operating expenses | 61,723 | 55,933 | 121,763 | 109,994 |
Operating income | 32,646 | 20,350 | 66,830 | 42,995 |
Interest income | 300 | 148 | 438 | 342 |
Interest expense | (119) | (116) | (311) | (296) |
Other income (expense), net | 551 | (194) | 743 | (22) |
Income before income taxes | 33,378 | 20,188 | 67,700 | 43,019 |
Provision for income taxes | 3,136 | 2,283 | 7,586 | 5,489 |
Net income | $ 30,242 | $ 17,905 | $ 60,114 | $ 37,530 |
Net income per share: | ||||
Basic (in dollars per share) | $ 0.39 | $ 0.23 | $ 0.77 | $ 0.48 |
Diluted (in dollars per share) | $ 0.38 | $ 0.23 | $ 0.76 | $ 0.47 |
Weighted-average number of shares used in per share calculations: | ||||
Basic (in shares) | 77,897 | 77,463 | 78,071 | 77,530 |
Diluted (in shares) | 79,210 | 79,466 | 79,423 | 79,621 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2022 | Jun. 26, 2021 | Jun. 25, 2022 | Jun. 26, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 30,242 | $ 17,905 | $ 60,114 | $ 37,530 |
Other comprehensive income (loss), net of tax: | ||||
Translation adjustments and other | (3,856) | 632 | (6,554) | (1,747) |
Unrealized losses on available-for-sale marketable securities | (547) | (97) | (1,751) | (228) |
Unrealized gains (losses) on derivative instruments | (116) | (89) | 758 | (315) |
Other comprehensive income (loss), net of tax | (4,519) | 446 | (7,547) | (2,290) |
Comprehensive income | $ 25,723 | $ 18,351 | $ 52,567 | $ 35,240 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Beginning balance (in shares) at Dec. 26, 2020 | 77,437,997 | |||||
Beginning balance, treasury stock (in shares) at Dec. 26, 2020 | 0 | |||||
Beginning balance at Dec. 26, 2020 | $ 744,084 | $ 78 | $ 0 | $ 903,838 | $ 5,886 | $ (165,718) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock under the Employee Stock Purchase Plan (in shares) | 228,784 | |||||
Issuance of common stock under the Employee Stock Purchase Plan | 5,065 | 5,065 | ||||
Issuance of common stock pursuant to exercise of options (in shares) | 100,000 | |||||
Issuance of common stock pursuant to exercise of options | 844 | $ 0 | 844 | |||
Issuance of common stock pursuant to vesting of restricted stock units, net of stock withheld for tax (in shares) | 308,219 | |||||
Issuance of common stock pursuant to vesting of restricted stock units, net of stock withheld for tax | (5,261) | $ 0 | (5,261) | |||
Purchase of common stock retired through repurchase program (in shares) | 620,200 | |||||
Purchase and retirement of common stock through repurchase program | (23,951) | $ (1) | (23,950) | |||
Stock-based compensation | 13,526 | 13,526 | ||||
Other comprehensive income (loss) | (2,290) | (2,290) | ||||
Net income | 37,530 | 37,530 | ||||
Ending balance (in shares) at Jun. 26, 2021 | 77,454,800 | |||||
Ending balance, treasury stock (in shares) at Jun. 26, 2021 | 0 | |||||
Ending balance at Jun. 26, 2021 | 769,547 | $ 77 | $ 0 | 894,062 | 3,596 | (128,188) |
Beginning balance (in shares) at Dec. 26, 2020 | 77,437,997 | |||||
Beginning balance, treasury stock (in shares) at Dec. 26, 2020 | 0 | |||||
Beginning balance at Dec. 26, 2020 | $ 744,084 | $ 78 | $ 0 | 903,838 | 5,886 | (165,718) |
Ending balance (in shares) at Dec. 25, 2021 | 78,240,506 | 78,240,506 | ||||
Ending balance at Dec. 25, 2021 | $ 815,780 | $ 78 | 898,945 | (1,449) | (81,794) | |
Beginning balance (in shares) at Mar. 27, 2021 | 77,758,530 | |||||
Beginning balance, treasury stock (in shares) at Mar. 27, 2021 | (136,402) | |||||
Beginning balance at Mar. 27, 2021 | 766,533 | $ 78 | $ (5,738) | 915,136 | 3,150 | (146,093) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock pursuant to exercise of options (in shares) | 50,000 | |||||
Issuance of common stock pursuant to exercise of options | 422 | 422 | ||||
Issuance of common stock pursuant to vesting of restricted stock units, net of stock withheld for tax (in shares) | 266,470 | |||||
Issuance of common stock pursuant to vesting of restricted stock units, net of stock withheld for tax | (4,120) | $ 0 | (4,120) | |||
Purchase of common stock retired through repurchase program (in shares) | 620,200 | 136,402 | ||||
Purchase and retirement of common stock through repurchase program | (18,213) | $ (1) | $ 5,738 | (23,950) | ||
Stock-based compensation | 6,574 | 6,574 | ||||
Other comprehensive income (loss) | 446 | 446 | ||||
Net income | 17,905 | 17,905 | ||||
Ending balance (in shares) at Jun. 26, 2021 | 77,454,800 | |||||
Ending balance, treasury stock (in shares) at Jun. 26, 2021 | 0 | |||||
Ending balance at Jun. 26, 2021 | $ 769,547 | $ 77 | $ 0 | 894,062 | 3,596 | (128,188) |
Beginning balance (in shares) at Dec. 25, 2021 | 78,240,506 | 78,240,506 | ||||
Beginning balance at Dec. 25, 2021 | $ 815,780 | $ 78 | 898,945 | (1,449) | (81,794) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock under the Employee Stock Purchase Plan (in shares) | 157,642 | |||||
Issuance of common stock under the Employee Stock Purchase Plan | 5,645 | 5,645 | ||||
Issuance of common stock pursuant to exercise of options (in shares) | 6,000 | |||||
Issuance of common stock pursuant to exercise of options | 42 | 42 | ||||
Issuance of common stock pursuant to vesting of restricted stock units, net of stock withheld for tax (in shares) | 234,076 | |||||
Issuance of common stock pursuant to vesting of restricted stock units, net of stock withheld for tax | (4,243) | $ 0 | (4,243) | |||
Purchase of common stock retired through repurchase program (in shares) | 1,443,491 | |||||
Purchase and retirement of common stock through repurchase program | (54,328) | $ (1) | (54,327) | |||
Stock-based compensation | 14,522 | 14,522 | ||||
Other comprehensive income (loss) | (7,547) | (7,547) | ||||
Net income | $ 60,114 | 60,114 | ||||
Ending balance (in shares) at Jun. 25, 2022 | 77,194,733 | 77,194,733 | ||||
Ending balance at Jun. 25, 2022 | $ 829,985 | $ 77 | 860,584 | (8,996) | (21,680) | |
Beginning balance (in shares) at Mar. 26, 2022 | 78,166,212 | |||||
Beginning balance at Mar. 26, 2022 | 846,673 | $ 78 | 902,994 | (4,477) | (51,922) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock pursuant to vesting of restricted stock units, net of stock withheld for tax (in shares) | 231,464 | |||||
Issuance of common stock pursuant to vesting of restricted stock units, net of stock withheld for tax | (4,171) | $ 0 | (4,171) | |||
Purchase of common stock retired through repurchase program (in shares) | 1,202,943 | |||||
Purchase and retirement of common stock through repurchase program | (44,931) | $ (1) | (44,930) | |||
Stock-based compensation | 6,691 | 6,691 | ||||
Other comprehensive income (loss) | (4,519) | (4,519) | ||||
Net income | $ 30,242 | 30,242 | ||||
Ending balance (in shares) at Jun. 25, 2022 | 77,194,733 | 77,194,733 | ||||
Ending balance at Jun. 25, 2022 | $ 829,985 | $ 77 | $ 860,584 | $ (8,996) | $ (21,680) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 25, 2022 | Jun. 26, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 60,114 | $ 37,530 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 14,146 | 12,678 |
Amortization | 4,702 | 13,900 |
Reduction in the carrying amount of right-of-use assets | 4,414 | 3,652 |
Stock-based compensation expense | 13,878 | 13,665 |
Provision for excess and obsolete inventories | 4,726 | 6,898 |
Non-cash restructuring charges | 710 | 0 |
Gain on contingent consideration | 0 | (95) |
Other adjustments to reconcile net income to net cash provided by operating activities | (567) | 1,211 |
Changes in assets and liabilities: | ||
Accounts receivable | 5,530 | (1,194) |
Inventories | (32,268) | (20,388) |
Prepaid expenses and other current assets | 1,295 | 3,179 |
Other assets | (40) | (344) |
Accounts payable | 7,521 | (2,028) |
Accrued liabilities | 4,102 | (235) |
Other liabilities | 73 | 184 |
Deferred revenues | 2,727 | 1,522 |
Operating lease liabilities | (4,262) | (3,980) |
Net cash provided by operating activities | 86,801 | 66,155 |
Cash flows from investing activities: | ||
Acquisition of property, plant and equipment | (30,116) | (31,322) |
Acquisition of business | (3,121) | 0 |
Purchases of marketable securities | (52,344) | (71,186) |
Purchase of promissory note receivable | 1,000 | 0 |
Proceeds from maturities and sales of marketable securities | 45,470 | 42,695 |
Net cash used in investing activities | (41,111) | (59,813) |
Cash flows from financing activities: | ||
Proceeds from issuances of common stock | 5,687 | 5,909 |
Purchase of common stock through stock repurchase program | (54,328) | (23,951) |
Tax withholdings related to net share settlements of equity awards | (4,243) | (5,261) |
Payment of contingent consideration | 0 | (3,873) |
Principal repayments on term loans | (4,379) | (4,740) |
Net cash used in financing activities | (57,263) | (31,916) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (3,470) | (1,558) |
Net decrease in cash, cash equivalents and restricted cash | (15,043) | (27,132) |
Cash, cash equivalents and restricted cash, beginning of period | 155,342 | 191,098 |
Cash, cash equivalents and restricted cash, end of period | 140,299 | 163,966 |
Non-cash investing and financing activities: | ||
Increase (decrease) in accounts payable and accrued liabilities related to property, plant and equipment purchases | (4,165) | 2,906 |
Operating lease, right-of-use assets obtained in exchange for lease obligations | 3,438 | 11,629 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes, net | 6,473 | 4,559 |
Cash paid for interest | 294 | 339 |
Operating cash outflows from operating leases | 4,379 | 4,352 |
Reconciliation of cash, cash equivalents and restricted cash: | ||
Cash and cash equivalents | 136,395 | 160,273 |
Restricted cash, current | 2,102 | 1,857 |
Restricted cash, non-current | 1,802 | 1,836 |
Total cash, cash equivalents and restricted cash | $ 140,299 | $ 163,966 |
Basis of Presentation and New A
Basis of Presentation and New Accounting Pronouncements | 6 Months Ended |
Jun. 25, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and New Accounting Pronouncements | Basis of Presentation and New Accounting Pronouncements Basis of Presentation The accompanying condensed consolidated financial information of FormFactor, Inc. is unaudited and has been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). However, such information reflects all adjustments, consisting only of normal recurring adjustments, which are, in the opinion of management, necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods. The condensed consolidated financial statements included herein should be read in conjunction with the consolidated financial statements and the notes thereto included in our 2021 Annual Report on Form 10-K filed with the SEC on February 18, 2022. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the full year. Fiscal Year We operate on a 52/53 week fiscal year, whereby the fiscal year ends on the last Saturday of December. Fiscal 2022 and 2021 contain 53 weeks and 52 weeks, respectively, and the six months ended June 25, 2022 and June 26, 2021 each contained 26 weeks. Fiscal 2022 will end on December 31, 2022. Significant Accounting Policies Our significant accounting policies have not changed during the six months ended June 25, 2022 from those disclosed in our Annual Report on Form 10-K for the year ended December 25, 2021. Reclassifications Certain immaterial reclassifications were made to the prior year financial statements to conform to the current year presentation. New Accounting Pronouncements ASU 2020-04 In March 2020, the FASB issued ASU 2020-04, “Referenced Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The ASU provides temporary optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued. In January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform (Topic 848),” which permits entities to apply optional expedients in Topic 848 to derivative instruments modified because of discounting transition resulting from reference rate reform. ASU 2020-04 became effective upon issuance and may be applied prospectively to contract modifications made on or before December 31, 2022. ASU 2021-01 became effective upon issuance and may be applied on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020 or prospectively for contract modifications made on or before December 31, 2022. The Company has not yet applied the relief afforded by these standard amendments and is currently assessing contracts that will require modification due to reference rate reform to which these standard amendments may be applied. ASU 2021-08 In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The new guidance requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with Accounting Standards Codification 606, “Revenue from Contracts with Customers,” as if it had originated the contracts. The Company elected to early adopt on a prospective basis during the second quarter of fiscal 2022. The adoption did not have a material effect on the Company's Consolidated Financial Statements. |
Concentration of Credit and Oth
Concentration of Credit and Other Risks | 6 Months Ended |
Jun. 25, 2022 | |
Risks and Uncertainties [Abstract] | |
Concentration of Credit and Other Risks | Concentration of Credit and Other Risks Each of the following customers accounted for 10% or more of our revenues for the periods indicated: Three Months Ended Six Months Ended June 25, June 26, June 25, June 26, Intel Corporation 20.9 % 16.2 % 20.9 % 22.1 % Samsung Electronics., LTD. * 14.7 % * * Taiwan Semiconductor Manufacturing Co., LTD. * 11.0 % * 11.2 % 20.9 % 41.9 % 20.9 % 33.3 % |
Inventories, net
Inventories, net | 6 Months Ended |
Jun. 25, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories, net | Inventories, net Inventories are stated at the lower of cost (principally standard cost, which approximates actual cost on a first in, first out basis) or net realizable value. Inventories, net, consisted of the following (in thousands): June 25, December 25, Raw materials $ 68,247 $ 57,673 Work-in-progress 52,619 35,935 Finished goods 22,609 17,940 $ 143,475 $ 111,548 |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 25, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisition Woburn Acquisition On June 9, 2022, we acquired the assets of the dilution refrigerator product line of American ULT Cryogenics, formerly d/b/a JanisULT (“Woburn”), for total consideration of $3.1 million. This acquisition adds cryogen-free dilution refrigerators capable of cooling to sub-10 millikelvin to our product portfolio, which is required for operation of superconducting quantum computers. As of the reporting date, we have not completed the valuation of assets acquired and liabilities assumed. Upon the completion of purchase accounting, we expect certain amounts provisionally recorded as goodwill will be ultimately allocated to developed technologies, but at this time we do not have an estimate of the allocation of value between amortizing and non-amortizing intangible assets. We do expect that some amount of intangible assets provisionally recorded as goodwill will ultimately be allocated to an amortizing intangible asset. At the time such amount is estimable, we will record any amortization required between the acquisition date and the date at which the amounts become estimable. While we do not yet have a reasonable basis on which to record any such amortization, the impact to the financial statements as a whole is not expected to be material assuming typical lives of these assets and ranges of potential allocation of value. The amounts presented below represent provisional amounts of assets acquired and liabilities assumed, which are recorded based on the best information available, and are subject to revision as the fair value of the associated assets acquired and liabilities assumed are finalized. The total estimated purchase price has been provisionally allocated to the underlying assets acquired and liabilities assumed, as follows (in thousands): Amount Accounts receivable $ 178 Inventories 6,064 Property, plant and equipment 479 Prepaid expenses and other current assets 117 Other assets 28 Tangible assets acquired 6,866 Deferred revenue (5,513) Accounts payable and accrued liabilities (30) Total tangible assets acquired and liabilities assumed 1,323 Goodwill 1,798 Net Assets Acquired $ 3,121 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 25, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill by reportable segment was as follows (in thousands): Probe Cards Systems Total Goodwill, as of December 26, 2020 $ 178,072 $ 34,689 $ 212,761 Addition - Baldwin Park Acquisition 352 — 352 Addition - HPD Acquisition — 1,254 1,254 Foreign currency translation — (2,068) (2,068) Goodwill, as of December 25, 2021 178,424 33,875 212,299 Addition - Woburn Acquisition — 1,798 1,798 Foreign currency translation — (1,740) (1,740) Goodwill, as of June 25, 2022 $ 178,424 $ 33,933 $ 212,357 We have not recorded goodwill impairments for the six months ended June 25, 2022. Intangible assets were as follows (in thousands): June 25, 2022 December 25, 2021 Intangible Assets Gross Accumulated Net Gross Accumulated Net Existing developed technologies $ 170,627 $ 149,338 $ 21,289 $ 172,259 $ 148,784 $ 23,475 Customer relationships 50,827 41,966 8,861 51,270 39,254 12,016 Trade name 7,952 7,630 322 8,054 7,603 451 Backlog — — — 1,896 1,896 — In-process research and development 400 — 400 400 — 400 $ 229,806 $ 198,934 $ 30,872 $ 233,879 $ 197,537 $ 36,342 Amortization expense was included in our Condensed Consolidated Statements of Income as follows (in thousands): Three Months Ended Six Months Ended June 25, June 26, June 25, June 26, Cost of revenues $ 788 $ 5,505 $ 1,596 $ 10,595 Selling, general and administrative 1,545 1,590 3,106 3,305 $ 2,333 $ 7,095 $ 4,702 $ 13,900 The estimated future amortization of definite-lived intangible assets, excluding in-process research and development, is as follows (in thousands): Fiscal Year Amount Remainder of 2022 $ 4,650 2023 6,968 2024 4,390 2025 4,142 2026 3,134 Thereafter 7,188 $ 30,472 |
Accrued Liabilities
Accrued Liabilities | 6 Months Ended |
Jun. 25, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consisted of the following (in thousands): June 25, December 25, Accrued compensation and benefits $ 32,001 $ 29,706 Accrued income and other taxes 9,468 8,086 Accrued warranty 3,978 2,805 Employee stock purchase plan contributions withheld 4,789 4,693 Accrued restructuring charges 592 2,478 Other accrued expenses 4,007 3,068 $ 54,835 $ 50,836 |
Restructuring Charges
Restructuring Charges | 6 Months Ended |
Jun. 25, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges On September 25, 2021, we adopted restructuring plans to improve our business effectiveness and streamline our operations by consolidating certain manufacturing facilities for both the Probe Cards segment and the Systems segment. This included plans to consolidate or relocate certain leased locations in the United States to other locations in the United States, Germany and Asia. As a result of these changes to certain work locations, we have incurred, and expect to incur, personnel related costs to sever, relocate, or retain select employees. Additionally, this included plans to adjust capacity for certain product offerings, which resulted in contract termination costs to satisfy contract obligations. We expect the actions defined under these plans will be largely completed by the end of December 2022, except facilities charges which may extend beyond that time. These plans are expected to result in FormFactor recording restructuring and other charges in the aggregate amount of approximately $5.0 million to $8.5 million, estimated to be comprised primarily of $1.0 million to $2.0 million of severance and employee-related costs, $1.5 million to $2.5 million in contract and lease termination costs, $2.0 million to $3.0 million in inventory impairments, and $0.5 million to $1.0 million of cost related to impairment of leasehold improvements, facility exits, and other costs. Approximately $2.5 million to $4.5 million is expected within each of the Probe Cards and Systems segments, respectively. The Company has recognized to date restructuring and other charges in the aggregate amount of $5.0 million, comprised of $1.2 million of severance and employee-related costs, $1.5 million in contract and lease termination costs, $2.0 million in inventory impairments, and $0.3 million of cost related to impairment of leasehold improvements, facility exits and other costs. Restructuring charges by reportable segment included in our Condensed Consolidated Statements of Income were as follows (in thousands): Three Months Ended Six Months Ended June 25, 2022 June 25, 2022 Probe Cards Systems Total Probe Cards Systems Total Cost of revenues $ 227 $ 227 $ 454 $ 266 $ 327 $ 593 Research and development — 53 53 — 199 199 Selling, general and administrative — 74 74 3 99 102 $ 227 $ 354 $ 581 $ 269 $ 625 $ 894 Changes to the restructuring accrual in the six months ended June 25, 2022 were as follows (in thousands): Employee Severance Inventory Contract Total December 25, 2021 $ 1,028 $ — $ 1,450 $ 2,478 Restructuring charges 185 646 — 894 Cash payments (621) — (1,450) (2,071) Non-cash settlement — (646) — (709) June 25, 2022 $ 592 $ — $ — $ 592 |
Fair Value and Derivative Instr
Fair Value and Derivative Instruments | 6 Months Ended |
Jun. 25, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value and Derivative Instruments | Fair Value and Derivative Instruments Whenever possible, the fair values of our financial assets and liabilities are determined using quoted market prices of identical securities or quoted market prices of similar securities from active markets. The three levels of inputs that may be used to measure fair value are as follows: • Level 1 valuations are obtained from real-time quotes for transactions in active exchange markets involving identical securities; • Level 2 valuations utilize significant observable inputs, such as quoted prices for similar assets or liabilities, quoted prices near the reporting date in markets that are less active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and • Level 3 valuations utilize unobservable inputs to the valuation methodology and include our own data about assumptions market participants would use in pricing the asset or liability based on the best information available under the circumstances. We did not have any transfers of assets or liabilities measured at fair value on a recurring basis to or from Level 1, Level 2 or Level 3 during the three and six months ended June 25, 2022 or the year ended December 25, 2021. The carrying values of Cash, Accounts receivable, net, Restricted cash, Prepaid expenses and other current assets, Accounts payable, Accrued liabilities, and Term loans, net of unamortized issuance costs, approximate fair value due to their short maturities. No changes were made to our valuation techniques during the first six months of fiscal 2022. Assets and Liabilities Measured at Fair Value on a Recurring Basis Assets and liabilities measured at fair value on a recurring basis were as follows (in thousands): June 25, 2022 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 39,228 $ — $ — $ 39,228 Commercial paper — 3,393 — 3,393 U.S. agency securities — 2,558 — 2,558 U.S. treasuries 1,995 — — 1,995 41,223 5,951 — 47,174 Marketable securities: Corporate bonds — 64,930 — 64,930 U.S. treasuries 35,894 — — 35,894 Commercial paper — 22,480 — 22,480 U.S. agency securities — 5,912 — 5,912 Certificates of deposit — 703 — 703 35,894 94,025 — 129,919 Promissory note receivable — — 1,007 1,007 Interest rate swap derivative contracts — 1,990 — 1,990 Total assets $ 77,117 $ 101,966 $ 1,007 $ 180,090 Liabilities: Foreign exchange derivative contracts $ — $ (1,146) $ — $ (1,146) December 25, 2021 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 9,526 $ — $ — $ 9,526 U.S. agency securities — 5,556 — 5,556 U.S. treasuries 2,500 — — 2,500 Commercial paper — 1,000 — 1,000 12,026 6,556 — 18,582 Marketable securities: Corporate bonds — 52,709 — 52,709 U.S. treasuries 38,985 — — 38,985 Commercial paper — 32,162 — 32,162 Certificates of deposit — 1,199 — 1,199 38,985 86,070 — 125,055 Interest rate swap derivative contracts — 629 — 629 Total assets $ 51,011 $ 93,255 $ — $ 144,266 Liabilities: Foreign exchange derivative contracts $ — $ (489) $ — $ (489) Interest rate swap derivative contracts — (55) — (55) Total liabilities $ — $ (544) $ — $ (544) Cash Equivalents The fair value of our cash equivalents is determined based on quoted market prices for similar or identical securities. Marketable Securities We classify our marketable securities as available-for-sale and value them utilizing a market approach. Our investments are priced by pricing vendors who provide observable inputs for their pricing without applying significant judgment. Broker pricing is used mainly when a quoted price is not available, the investment is not priced by our pricing vendors or when a broker price is more reflective of fair value. Our broker-priced investments are categorized as Level 2 investments because fair value is based on similar assets without applying significant judgments. In addition, all investments have a sufficient trading volume to demonstrate that the fair value is appropriate. Unrealized gains and losses were immaterial and were recorded as a component of Accumulated other comprehensive loss in our Condensed Consolidated Balance Sheets. We did not have any other-than-temporary unrealized gains or losses at either period end included in these financial statements. Interest Rate Swaps The fair value of our interest rate swap contracts is determined at the end of each reporting period based on valuation models that use interest rate yield curves as inputs. For accounting purposes, our interest rate swap contracts qualify for, and are designated as, cash flow hedges. The cash flows associated with the interest rate swaps are reported in Net cash provided by operating activities in our Condensed Consolidated Statements of Cash Flows and the fair value of the interest rate swap contracts are recorded within Prepaid expenses and other current assets and Other assets in our Condensed Consolidated Balance Sheets. Foreign Exchange Derivative Contracts We operate and sell our products in various global markets. As a result, we are exposed to changes in foreign currency exchange rates. We utilize foreign currency forward contracts to hedge against future movements in foreign exchange rates that affect certain existing foreign currency denominated assets and liabilities and forecasted foreign currency revenue and expense transactions. Under this program, our strategy is to have increases or decreases in our foreign currency exposures mitigated by gains or losses on the foreign currency forward contracts in order to mitigate the risks and volatility associated with foreign currency transaction gains or losses. We do not use derivative financial instruments for speculative or trading purposes. For accounting purposes, certain of our foreign currency forward contracts are not designated as hedging instruments and, accordingly, we record the fair value of these contracts as of the end of our reporting period in our Condensed Consolidated Balance Sheets with changes in fair value recorded within Other income (expense), net in our Condensed Consolidated Statement of Income for both realized and unrealized gains and losses. Certain of our foreign currency forward contracts are designated as cash flow hedges, and, accordingly, we record the fair value of these contracts as of the end of our reporting period in our Condensed Consolidated Balance Sheets with changes in fair value recorded as a component of Accumulated other comprehensive loss and reclassified into earnings in the same period in which the hedged transaction affects earnings, and in the same line item on the Condensed Consolidated Statements of Income as the impact of the hedge transaction. The fair value of our foreign exchange derivative contracts was determined based on current foreign currency exchange rates and forward points. All of our foreign exchange derivative contracts outstanding at June 25, 2022 will mature by the second quarter of fiscal 2023. The following table provides information about our foreign currency forward contracts outstanding as of June 25, 2022 (in thousands): Currency Contract Position Contract Amount Contract Amount Euro Dollar Buy (21,445) $ (24,117) Japanese Yen Sell 2,247,411 16,633 Korean Won Buy (1,010,988) (779) Taiwan Dollar Sell 28,890 974 Total USD notional amount of outstanding foreign exchange contracts $ (7,289) Our foreign currency contracts are classified within Level 2 of the fair value hierarchy as they are valued using pricing models that utilize observable market inputs. Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis We measure and report our non-financial assets such as Property, plant and equipment, Goodwill and Intangible assets at fair value on a non-recurring basis if we determine these assets to be impaired or in the period when we make a business acquisition. Other than as discussed in Note 4, Acquisition , and Note 7, Restructuring Charges, |
Warranty
Warranty | 6 Months Ended |
Jun. 25, 2022 | |
Product Warranties Disclosures [Abstract] | |
Warranty | Warranty We offer warranties on certain products and record a liability for the estimated future costs associated with warranty claims at the time revenue is recognized. The warranty liability is based upon historical experience and our estimate of the level of future costs. While we engage in product quality programs and processes, our warranty obligation is affected by product failure rates, material usage and service delivery costs. We regularly monitor product returns for warranty and maintain a reserve for the related expenses based upon our historical experience and any specifically identified failures. As we sell new products to our customers, we must exercise considerable judgment in estimating the expected failure rates. This estimating process is based on historical experience of similar products, as well as various other assumptions that we believe to be reasonable under the circumstances. We provide for the estimated cost of product warranties at the time revenue is recognized as a component of Cost of revenues in our Condensed Consolidated Statement of Income. Changes in our warranty liability were as follows (in thousands): Six Months Ended June 25, June 26, Balance at beginning of period $ 2,805 $ 3,918 Accruals 3,846 3,472 Settlements (2,673) (3,132) Balance at end of period $ 3,978 $ 4,258 |
Property, Plant, and Equipment,
Property, Plant, and Equipment, net | 6 Months Ended |
Jun. 25, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, net | Property, Plant and Equipment, net Property, plant and equipment, net consisted of the following (in thousands): June 25, December 25, Land $ 4,751 $ 4,751 Building and building improvements 44,429 41,722 Machinery and equipment 263,851 252,632 Computer equipment and software 45,727 44,667 Furniture and fixtures 7,434 7,293 Leasehold improvements 83,127 82,266 Sub-total 449,319 433,331 Less: Accumulated depreciation and amortization (323,779) (312,700) Net, property, plant and equipment 125,540 120,631 Construction-in-process 32,274 25,924 Total $ 157,814 $ 146,555 |
Stockholders_ Equity and Stock-
Stockholders’ Equity and Stock-Based Compensation | 3 Months Ended |
Jun. 25, 2022 | |
Equity [Abstract] | |
Stockholders’ Equity and Stock-Based Compensation | Stockholders’ Equity and Stock-Based Compensation Common Stock Repurchase Programs On October 26, 2020, our Board of Directors authorized a two-year program to repurchase up to $50 million of outstanding common stock to offset potential dilution from issuances of common stock under our stock-based compensation programs. During fiscal 2021 we repurchased and retired 622,400 shares of common stock for $24.0 million. During the six months ended June 25, 2022, we repurchased and retired 676,408 shares of common stock for $26.0 million, utilizing the remaining funds available for repurchase. On May 20, 2022, our Board of Directors authorized an additional program to repurchase up to $75 million of outstanding common stock, also with the primary purpose to offset potential dilution from issuances of common stock under our stock-based compensation programs. The share repurchase program will expire on May 20, 2024. During the three months ended June 25, 2022, we repurchased and retired 767,083 shares of common stock for $28.4 million under the program. As of June 25, 2022, $46.6 million remained available for future repurchases. Our policy related to repurchases of our common stock is to charge the excess of cost over par value to additional paid-in capital once the shares are retired. All repurchases were made in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended. Restricted Stock Units Restricted stock unit (“RSU”) activity under our equity incentive plan was as follows: Units Weighted Average Grant Date Fair Value RSUs at December 25, 2021 2,166,934 $ 28.63 Awards granted 63,697 41.25 Awards vested (338,825) 16.73 Awards forfeited (51,941) 30.23 RSUs at June 25, 2022 1,839,865 31.22 Performance Restricted Stock Units We may grant Performance RSUs (“PRSUs”) to certain executives, which vest based upon us achieving certain market performance criteria. There were no PRSUs granted during the six months ended June 25, 2022. PRSUs are included as part of the RSU activity above. Employee Stock Purchase Plan Information related to activity under our Employee Stock Purchase Plan (“ESPP”) was as follows: Six Months Ended June 25, 2022 Shares issued 157,642 Weighted average per share purchase price $ 35.81 Weighted average per share discount from the fair value of our common stock on the date of issuance $ (6.93) Stock-Based Compensation Stock-based compensation was included in our Condensed Consolidated Statements of Income as follows (in thousands): Three Months Ended Six Months Ended June 25, June 26, June 25, June 26, Cost of revenues $ 734 $ 1,079 $ 1,812 $ 2,414 Research and development 1,695 1,663 3,681 3,352 Selling, general and administrative 3,929 3,846 8,385 7,899 Total stock-based compensation $ 6,358 $ 6,588 $ 13,878 $ 13,665 Unrecognized Compensation Costs At June 25, 2022, the unrecognized stock-based compensation was as follows (dollars in thousands): Unrecognized Expense Average Expected Recognition Period in Years Restricted stock units $ 27,430 1.80 Performance restricted stock units 7,202 1.74 Employee stock purchase plan 285 0.61 Total unrecognized stock-based compensation expense $ 34,917 1.77 |
Net Income per Share
Net Income per Share | 6 Months Ended |
Jun. 25, 2022 | |
Earnings Per Share [Abstract] | |
Net Income per Share | Net Income per Share The following table reconciles the shares used in calculating basic net income per share and diluted net income per share (in thousands): Three Months Ended Six Months Ended June 25, June 26, June 25, June 26, Weighted-average shares used in computing basic net income per share 77,897 77,463 78,071 77,530 Add potentially dilutive securities 1,313 2,003 1,352 2,091 Weighted-average shares used in computing diluted net income per share 79,210 79,466 79,423 79,621 Securities not included as they would have been antidilutive 23 128 — 118 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 25, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases See Note 14, Leases . Contractual Obligations and Commitments Our contractual obligations and commitments have not materially changed as of June 25, 2022 from those disclosed in our Annual Report on Form 10-K for the year ended December 25, 2021. Legal Matters |
Leases
Leases | 6 Months Ended |
Jun. 25, 2022 | |
Leases [Abstract] | |
Leases | Leases We lease real estate space under non-cancelable operating lease agreements for commercial and industrial space, as well as for a portion of our corporate headquarters located in Livermore, California. Our leases have remaining terms of 1 to 7 years, and some leases include options to extend up to 20 years. We also have operating leases for automobiles with remaining lease terms of 1 to 3 years. We did not include any of our renewal options in our lease terms for calculating our lease liability as the renewal options allow us to maintain operational flexibility and we are not reasonably certain we will exercise these options at this time. The weighted-average remaining lease term for our operating leases was 6 years as of June 25, 2022 and the weighted-average discount rate was 3.69%. The components of lease expense were as follows (in thousands): Three Months Ended Six Months Ended June 25, June 26, June 25, June 26, Lease expense: Operating lease expense $ 2,183 $ 2,048 $ 4,404 $ 4,171 Short-term lease expense 76 45 116 82 Variable lease expense 677 426 1,135 963 $ 2,936 $ 2,519 $ 5,655 $ 5,216 Future minimum payments under our non-cancelable operating leases were as follows as of June 25, 2022 (in thousands): Fiscal Year Amount Remainder of 2022 $ 4,319 2023 7,564 2024 7,224 2025 7,187 2026 6,505 Thereafter 9,143 Total minimum lease payments 41,942 Less: interest (4,588) Present value of net minimum lease payments 37,354 Less: current portion (7,843) Total long-term operating lease liabilities $ 29,511 |
Revenue
Revenue | 6 Months Ended |
Jun. 25, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Transaction price allocated to the remaining performance obligations: On June 25, 2022, we had $9.7 million of remaining performance obligations, which were comprised of deferred service contracts and extended warranty contracts and contracts with overtime revenue recognition that are not yet delivered. We expect to recognize approximately 66.9% of our remaining performance obligations as revenue in the remainder of fiscal 2022, approximately 27.7% in fiscal 2023, and approximately 5.4% in fiscal 2024 and thereafter. The foregoing excludes the value of other remaining performance obligations as they have original durations of one year or less, and also excludes information about variable consideration allocated entirely to a wholly unsatisfied performance obligation. Contract balances: The timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable is recorded at the invoiced amount, net of an allowance for credit losses. A receivable is recognized in the period we deliver goods or provide services or when our right to consideration is unconditional. A contract asset is recorded when we have performed under the contract but our right to consideration is conditional on something other than the passage of time. Contract assets as of June 25, 2022 and December 25, 2021 were $2.0 million and $0.9 million, respectively, and are reported on the Condensed Consolidated Balance Sheets as a component of Prepaid expenses and other current assets. Contract liabilities include payments received and payments due in advance of performance under a contract and are satisfied as the associated revenue is recognized. Contract liabilities are reported on the Condensed Consolidated Balance Sheets at the end of each reporting period as a component of Deferred revenue and Other liabilities. Contract liabilities as of June 25, 2022 and December 25, 2021 were $32.2 million and $24.2 million, respectively. During the six months ended June 25, 2022, we recognized $16.5 million of revenue that was included in contract liabilities as of December 25, 2021. Costs to obtain a contract: We generally expense sales commissions when incurred as a component of Selling, general and administrative expense, as the amortization period is typically less than one year. Revenue by Category: Refer to Note 16, Operating Segments and Enterprise-Wide Information |
Operating Segments and Enterpri
Operating Segments and Enterprise-Wide Information | 6 Months Ended |
Jun. 25, 2022 | |
Segment Reporting [Abstract] | |
Operating Segments and Enterprise-Wide Information | Operating Segments and Enterprise-Wide InformationOur chief operating decision maker (“CODM”) is our Chief Executive Officer, who reviews operating results to make decisions about allocating resources and assessing performance for the entire company. We operate in two reportable segments consisting of the Probe Cards segment and the Systems segment. The following table summarizes the operating results by reportable segment (dollars in thousands): Three Months Ended June 25, 2022 June 26, 2021 Probe Cards Systems Corporate and Other Total Probe Cards Systems Corporate and Other Total Revenues $ 167,708 $ 36,199 $ — $ 203,907 $ 153,641 $ 34,435 $ — $ 188,076 Gross profit 78,420 18,276 (2,327) 94,369 66,600 16,907 (7,224) 76,283 Gross margin 46.8 % 50.5 % 46.3 % 43.3 % 49.1 % 40.6 % Six Months Ended June 25, 2022 June 26, 2021 Probe Cards Systems Corporate and Other Total Probe Cards Systems Corporate and Other Total Revenues $ 327,691 $ 73,390 $ — $ 401,081 $ 312,539 $ 62,173 $ — $ 374,712 Gross profit $ 155,622 $ 37,683 $ (4,712) $ 188,593 $ 136,915 $ 30,506 $ (14,432) $ 152,989 Gross margin 47.5 % 51.3 % 47.0 % 43.8 % 49.1 % 40.8 % Operating results provide useful information to our management for assessment of our performance and results of operations. Certain components of our operating results are utilized to determine executive compensation along with other measures. Corporate and Other includes unallocated expenses relating to amortization of intangible assets, inventory and fixed asset fair value adjustments due to acquisitions, share-based compensation, and restructuring charges which are not used in evaluating the results of, or in allocating resources to, our reportable segments. Certain revenue category information by reportable segment was as follows (in thousands): Three Months Ended June 25, 2022 June 26, 2021 Probe Cards Systems Total Probe Cards Systems Total Market: Foundry & Logic $ 122,380 $ — $ 122,380 $ 103,726 $ — $ 103,726 DRAM 36,843 — 36,843 42,088 — 42,088 Flash 8,485 — 8,485 7,827 — 7,827 Systems — 36,199 36,199 — 34,435 34,435 Total $ 167,708 $ 36,199 $ 203,907 $ 153,641 $ 34,435 $ 188,076 Timing of revenue recognition: Products transferred at a point in time $ 166,701 $ 33,081 $ 199,782 $ 153,129 $ 30,884 $ 184,013 Products and services transferred over time 1,007 3,118 4,125 512 3,551 4,063 Total $ 167,708 $ 36,199 $ 203,907 $ 153,641 $ 34,435 $ 188,076 Geographical region: Taiwan $ 45,188 $ 4,832 $ 50,020 $ 46,737 $ 5,147 $ 51,884 China 40,578 9,157 49,735 23,996 7,831 31,827 United States 21,539 9,703 31,242 24,174 8,476 32,650 South Korea 27,418 1,337 28,755 35,426 751 36,177 Malaysia 16,157 87 16,244 3,034 161 3,195 Japan 6,716 3,221 9,937 3,477 4,227 7,704 Europe 3,824 4,267 8,091 6,466 5,544 12,010 Singapore 5,131 1,977 7,108 8,602 1,360 9,962 Rest of the world 1,157 1,618 2,775 1,729 938 2,667 Total $ 167,708 $ 36,199 $ 203,907 $ 153,641 $ 34,435 $ 188,076 Six Months Ended June 25, 2022 June 26, 2021 Probe Cards Systems Total Probe Cards Systems Total Market: Foundry & Logic $ 236,501 $ — $ 236,501 $ 217,136 $ — $ 217,136 DRAM 71,280 — 71,280 75,986 — 75,986 Flash 19,910 — 19,910 19,417 — 19,417 Systems — 73,390 73,390 — 62,173 62,173 Total $ 327,691 $ 73,390 $ 401,081 $ 312,539 $ 62,173 $ 374,712 Timing of revenue recognition: Products transferred at a point in time $ 325,537 $ 68,497 $ 394,034 $ 311,605 $ 55,555 $ 367,160 Products and services transferred over time 2,154 4,893 7,047 934 6,618 7,552 Total $ 327,691 $ 73,390 $ 401,081 $ 312,539 $ 62,173 $ 374,712 Geographical region: Taiwan $ 87,710 $ 15,379 $ 103,089 $ 91,471 $ 5,993 $ 97,464 China 73,369 14,765 88,134 61,827 12,625 74,452 United States 41,515 15,374 56,889 45,482 16,654 62,136 South Korea 52,299 3,957 56,256 53,427 1,835 55,262 Malaysia 37,674 769 38,443 22,922 203 23,125 Japan 11,501 7,818 19,319 8,726 8,299 17,025 Singapore 15,415 2,589 18,004 16,229 2,291 18,520 Europe 6,206 10,280 16,486 9,299 12,710 22,009 Rest of the world 2,002 2,459 4,461 3,156 1,563 4,719 Total $ 327,691 $ 73,390 $ 401,081 $ 312,539 $ 62,173 $ 374,712 |
Basis of Presentation and New_2
Basis of Presentation and New Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 25, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of PresentationThe accompanying condensed consolidated financial information of FormFactor, Inc. is unaudited and has been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). However, such information reflects all adjustments, consisting only of normal recurring adjustments, which are, in the opinion of management, necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods. The condensed consolidated financial statements included herein should be read in conjunction with the consolidated financial statements and the notes thereto included in our 2021 Annual Report on Form 10-K filed with the SEC on February 18, 2022. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the full year. |
Fiscal Year | Fiscal Year We operate on a 52/53 week fiscal year, whereby the fiscal year ends on the last Saturday of December. Fiscal 2022 and 2021 contain 53 weeks and 52 weeks, respectively, and the six months ended June 25, 2022 and June 26, 2021 each contained 26 weeks. Fiscal 2022 will end on December 31, 2022. |
New Accounting Pronouncements | New Accounting Pronouncements ASU 2020-04 In March 2020, the FASB issued ASU 2020-04, “Referenced Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The ASU provides temporary optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued. In January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform (Topic 848),” which permits entities to apply optional expedients in Topic 848 to derivative instruments modified because of discounting transition resulting from reference rate reform. ASU 2020-04 became effective upon issuance and may be applied prospectively to contract modifications made on or before December 31, 2022. ASU 2021-01 became effective upon issuance and may be applied on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020 or prospectively for contract modifications made on or before December 31, 2022. The Company has not yet applied the relief afforded by these standard amendments and is currently assessing contracts that will require modification due to reference rate reform to which these standard amendments may be applied. ASU 2021-08 In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The new guidance requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with Accounting Standards Codification 606, “Revenue from Contracts with Customers,” as if it had originated the contracts. The Company elected to early adopt on a prospective basis during the second quarter of fiscal 2022. The adoption did not have a material effect on the Company's Consolidated Financial Statements. |
Fair Value | Whenever possible, the fair values of our financial assets and liabilities are determined using quoted market prices of identical securities or quoted market prices of similar securities from active markets. The three levels of inputs that may be used to measure fair value are as follows: • Level 1 valuations are obtained from real-time quotes for transactions in active exchange markets involving identical securities; • Level 2 valuations utilize significant observable inputs, such as quoted prices for similar assets or liabilities, quoted prices near the reporting date in markets that are less active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and • Level 3 valuations utilize unobservable inputs to the valuation methodology and include our own data about assumptions market participants would use in pricing the asset or liability based on the best information available under the circumstances. We did not have any transfers of assets or liabilities measured at fair value on a recurring basis to or from Level 1, Level 2 or Level 3 during the three and six months ended June 25, 2022 or the year ended December 25, 2021. The carrying values of Cash, Accounts receivable, net, Restricted cash, Prepaid expenses and other current assets, Accounts payable, Accrued liabilities, and Term loans, net of unamortized issuance costs, approximate fair value due to their short maturities. No changes were made to our valuation techniques during the first six months of fiscal 2022. Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis We measure and report our non-financial assets such as Property, plant and equipment, Goodwill and Intangible assets at fair value on a non-recurring basis if we determine these assets to be impaired or in the period when we make a business |
Concentration of Credit and O_2
Concentration of Credit and Other Risks (Tables) | 6 Months Ended |
Jun. 25, 2022 | |
Risks and Uncertainties [Abstract] | |
Schedule of Customer Percentage of Revenue | Each of the following customers accounted for 10% or more of our revenues for the periods indicated: Three Months Ended Six Months Ended June 25, June 26, June 25, June 26, Intel Corporation 20.9 % 16.2 % 20.9 % 22.1 % Samsung Electronics., LTD. * 14.7 % * * Taiwan Semiconductor Manufacturing Co., LTD. * 11.0 % * 11.2 % 20.9 % 41.9 % 20.9 % 33.3 % |
Inventories, net (Tables)
Inventories, net (Tables) | 6 Months Ended |
Jun. 25, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory Components | Inventories, net, consisted of the following (in thousands): June 25, December 25, Raw materials $ 68,247 $ 57,673 Work-in-progress 52,619 35,935 Finished goods 22,609 17,940 $ 143,475 $ 111,548 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 25, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The total estimated purchase price has been provisionally allocated to the underlying assets acquired and liabilities assumed, as follows (in thousands): Amount Accounts receivable $ 178 Inventories 6,064 Property, plant and equipment 479 Prepaid expenses and other current assets 117 Other assets 28 Tangible assets acquired 6,866 Deferred revenue (5,513) Accounts payable and accrued liabilities (30) Total tangible assets acquired and liabilities assumed 1,323 Goodwill 1,798 Net Assets Acquired $ 3,121 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 25, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill by Reportable Segments | Goodwill by reportable segment was as follows (in thousands): Probe Cards Systems Total Goodwill, as of December 26, 2020 $ 178,072 $ 34,689 $ 212,761 Addition - Baldwin Park Acquisition 352 — 352 Addition - HPD Acquisition — 1,254 1,254 Foreign currency translation — (2,068) (2,068) Goodwill, as of December 25, 2021 178,424 33,875 212,299 Addition - Woburn Acquisition — 1,798 1,798 Foreign currency translation — (1,740) (1,740) Goodwill, as of June 25, 2022 $ 178,424 $ 33,933 $ 212,357 |
Schedule of Intangible Assets | Intangible assets were as follows (in thousands): June 25, 2022 December 25, 2021 Intangible Assets Gross Accumulated Net Gross Accumulated Net Existing developed technologies $ 170,627 $ 149,338 $ 21,289 $ 172,259 $ 148,784 $ 23,475 Customer relationships 50,827 41,966 8,861 51,270 39,254 12,016 Trade name 7,952 7,630 322 8,054 7,603 451 Backlog — — — 1,896 1,896 — In-process research and development 400 — 400 400 — 400 $ 229,806 $ 198,934 $ 30,872 $ 233,879 $ 197,537 $ 36,342 |
Schedule of Amortization Expense | Amortization expense was included in our Condensed Consolidated Statements of Income as follows (in thousands): Three Months Ended Six Months Ended June 25, June 26, June 25, June 26, Cost of revenues $ 788 $ 5,505 $ 1,596 $ 10,595 Selling, general and administrative 1,545 1,590 3,106 3,305 $ 2,333 $ 7,095 $ 4,702 $ 13,900 |
Schedule of Estimated Amortization of Intangible Assets | The estimated future amortization of definite-lived intangible assets, excluding in-process research and development, is as follows (in thousands): Fiscal Year Amount Remainder of 2022 $ 4,650 2023 6,968 2024 4,390 2025 4,142 2026 3,134 Thereafter 7,188 $ 30,472 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 25, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following (in thousands): June 25, December 25, Accrued compensation and benefits $ 32,001 $ 29,706 Accrued income and other taxes 9,468 8,086 Accrued warranty 3,978 2,805 Employee stock purchase plan contributions withheld 4,789 4,693 Accrued restructuring charges 592 2,478 Other accrued expenses 4,007 3,068 $ 54,835 $ 50,836 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 6 Months Ended |
Jun. 25, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs by Reportable Segment | Restructuring charges by reportable segment included in our Condensed Consolidated Statements of Income were as follows (in thousands): Three Months Ended Six Months Ended June 25, 2022 June 25, 2022 Probe Cards Systems Total Probe Cards Systems Total Cost of revenues $ 227 $ 227 $ 454 $ 266 $ 327 $ 593 Research and development — 53 53 — 199 199 Selling, general and administrative — 74 74 3 99 102 $ 227 $ 354 $ 581 $ 269 $ 625 $ 894 |
Schedule of Restructuring Accrual Activity | Changes to the restructuring accrual in the six months ended June 25, 2022 were as follows (in thousands): Employee Severance Inventory Contract Total December 25, 2021 $ 1,028 $ — $ 1,450 $ 2,478 Restructuring charges 185 646 — 894 Cash payments (621) — (1,450) (2,071) Non-cash settlement — (646) — (709) June 25, 2022 $ 592 $ — $ — $ 592 |
Fair Value and Derivative Ins_2
Fair Value and Derivative Instruments (Tables) | 6 Months Ended |
Jun. 25, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Assets Measured on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis were as follows (in thousands): June 25, 2022 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 39,228 $ — $ — $ 39,228 Commercial paper — 3,393 — 3,393 U.S. agency securities — 2,558 — 2,558 U.S. treasuries 1,995 — — 1,995 41,223 5,951 — 47,174 Marketable securities: Corporate bonds — 64,930 — 64,930 U.S. treasuries 35,894 — — 35,894 Commercial paper — 22,480 — 22,480 U.S. agency securities — 5,912 — 5,912 Certificates of deposit — 703 — 703 35,894 94,025 — 129,919 Promissory note receivable — — 1,007 1,007 Interest rate swap derivative contracts — 1,990 — 1,990 Total assets $ 77,117 $ 101,966 $ 1,007 $ 180,090 Liabilities: Foreign exchange derivative contracts $ — $ (1,146) $ — $ (1,146) December 25, 2021 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 9,526 $ — $ — $ 9,526 U.S. agency securities — 5,556 — 5,556 U.S. treasuries 2,500 — — 2,500 Commercial paper — 1,000 — 1,000 12,026 6,556 — 18,582 Marketable securities: Corporate bonds — 52,709 — 52,709 U.S. treasuries 38,985 — — 38,985 Commercial paper — 32,162 — 32,162 Certificates of deposit — 1,199 — 1,199 38,985 86,070 — 125,055 Interest rate swap derivative contracts — 629 — 629 Total assets $ 51,011 $ 93,255 $ — $ 144,266 Liabilities: Foreign exchange derivative contracts $ — $ (489) $ — $ (489) Interest rate swap derivative contracts — (55) — (55) Total liabilities $ — $ (544) $ — $ (544) |
Schedule of Foreign Currency Forward Contracts | The following table provides information about our foreign currency forward contracts outstanding as of June 25, 2022 (in thousands): Currency Contract Position Contract Amount Contract Amount Euro Dollar Buy (21,445) $ (24,117) Japanese Yen Sell 2,247,411 16,633 Korean Won Buy (1,010,988) (779) Taiwan Dollar Sell 28,890 974 Total USD notional amount of outstanding foreign exchange contracts $ (7,289) |
Warranty (Tables)
Warranty (Tables) | 6 Months Ended |
Jun. 25, 2022 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Reconciliation of Changes in Warranty Liability | Changes in our warranty liability were as follows (in thousands): Six Months Ended June 25, June 26, Balance at beginning of period $ 2,805 $ 3,918 Accruals 3,846 3,472 Settlements (2,673) (3,132) Balance at end of period $ 3,978 $ 4,258 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment, net (Tables) | 6 Months Ended |
Jun. 25, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment, net consisted of the following (in thousands): June 25, December 25, Land $ 4,751 $ 4,751 Building and building improvements 44,429 41,722 Machinery and equipment 263,851 252,632 Computer equipment and software 45,727 44,667 Furniture and fixtures 7,434 7,293 Leasehold improvements 83,127 82,266 Sub-total 449,319 433,331 Less: Accumulated depreciation and amortization (323,779) (312,700) Net, property, plant and equipment 125,540 120,631 Construction-in-process 32,274 25,924 Total $ 157,814 $ 146,555 |
Stockholders_ Equity and Stoc_2
Stockholders’ Equity and Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 25, 2022 | |
Equity [Abstract] | |
Schedule of Restricted Stock Unit Activity | Restricted stock unit (“RSU”) activity under our equity incentive plan was as follows: Units Weighted Average Grant Date Fair Value RSUs at December 25, 2021 2,166,934 $ 28.63 Awards granted 63,697 41.25 Awards vested (338,825) 16.73 Awards forfeited (51,941) 30.23 RSUs at June 25, 2022 1,839,865 31.22 |
Schedule of ESPP Activity | Information related to activity under our Employee Stock Purchase Plan (“ESPP”) was as follows: Six Months Ended June 25, 2022 Shares issued 157,642 Weighted average per share purchase price $ 35.81 Weighted average per share discount from the fair value of our common stock on the date of issuance $ (6.93) |
Schedule of Stock-based Compensation | Stock-based compensation was included in our Condensed Consolidated Statements of Income as follows (in thousands): Three Months Ended Six Months Ended June 25, June 26, June 25, June 26, Cost of revenues $ 734 $ 1,079 $ 1,812 $ 2,414 Research and development 1,695 1,663 3,681 3,352 Selling, general and administrative 3,929 3,846 8,385 7,899 Total stock-based compensation $ 6,358 $ 6,588 $ 13,878 $ 13,665 |
Schedule of Unrecognized Stock-based Compensation | At June 25, 2022, the unrecognized stock-based compensation was as follows (dollars in thousands): Unrecognized Expense Average Expected Recognition Period in Years Restricted stock units $ 27,430 1.80 Performance restricted stock units 7,202 1.74 Employee stock purchase plan 285 0.61 Total unrecognized stock-based compensation expense $ 34,917 1.77 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 6 Months Ended |
Jun. 25, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | The following table reconciles the shares used in calculating basic net income per share and diluted net income per share (in thousands): Three Months Ended Six Months Ended June 25, June 26, June 25, June 26, Weighted-average shares used in computing basic net income per share 77,897 77,463 78,071 77,530 Add potentially dilutive securities 1,313 2,003 1,352 2,091 Weighted-average shares used in computing diluted net income per share 79,210 79,466 79,423 79,621 Securities not included as they would have been antidilutive 23 128 — 118 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 25, 2022 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense | The components of lease expense were as follows (in thousands): Three Months Ended Six Months Ended June 25, June 26, June 25, June 26, Lease expense: Operating lease expense $ 2,183 $ 2,048 $ 4,404 $ 4,171 Short-term lease expense 76 45 116 82 Variable lease expense 677 426 1,135 963 $ 2,936 $ 2,519 $ 5,655 $ 5,216 |
Schedule of Future Minimum Payments Under Leases | Future minimum payments under our non-cancelable operating leases were as follows as of June 25, 2022 (in thousands): Fiscal Year Amount Remainder of 2022 $ 4,319 2023 7,564 2024 7,224 2025 7,187 2026 6,505 Thereafter 9,143 Total minimum lease payments 41,942 Less: interest (4,588) Present value of net minimum lease payments 37,354 Less: current portion (7,843) Total long-term operating lease liabilities $ 29,511 |
Operating Segments and Enterp_2
Operating Segments and Enterprise-Wide Information (Tables) | 6 Months Ended |
Jun. 25, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Operating Results by Segment | The following table summarizes the operating results by reportable segment (dollars in thousands): Three Months Ended June 25, 2022 June 26, 2021 Probe Cards Systems Corporate and Other Total Probe Cards Systems Corporate and Other Total Revenues $ 167,708 $ 36,199 $ — $ 203,907 $ 153,641 $ 34,435 $ — $ 188,076 Gross profit 78,420 18,276 (2,327) 94,369 66,600 16,907 (7,224) 76,283 Gross margin 46.8 % 50.5 % 46.3 % 43.3 % 49.1 % 40.6 % Six Months Ended June 25, 2022 June 26, 2021 Probe Cards Systems Corporate and Other Total Probe Cards Systems Corporate and Other Total Revenues $ 327,691 $ 73,390 $ — $ 401,081 $ 312,539 $ 62,173 $ — $ 374,712 Gross profit $ 155,622 $ 37,683 $ (4,712) $ 188,593 $ 136,915 $ 30,506 $ (14,432) $ 152,989 Gross margin 47.5 % 51.3 % 47.0 % 43.8 % 49.1 % 40.8 % |
Schedule of Disaggregation of Revenue by Segment | Certain revenue category information by reportable segment was as follows (in thousands): Three Months Ended June 25, 2022 June 26, 2021 Probe Cards Systems Total Probe Cards Systems Total Market: Foundry & Logic $ 122,380 $ — $ 122,380 $ 103,726 $ — $ 103,726 DRAM 36,843 — 36,843 42,088 — 42,088 Flash 8,485 — 8,485 7,827 — 7,827 Systems — 36,199 36,199 — 34,435 34,435 Total $ 167,708 $ 36,199 $ 203,907 $ 153,641 $ 34,435 $ 188,076 Timing of revenue recognition: Products transferred at a point in time $ 166,701 $ 33,081 $ 199,782 $ 153,129 $ 30,884 $ 184,013 Products and services transferred over time 1,007 3,118 4,125 512 3,551 4,063 Total $ 167,708 $ 36,199 $ 203,907 $ 153,641 $ 34,435 $ 188,076 Geographical region: Taiwan $ 45,188 $ 4,832 $ 50,020 $ 46,737 $ 5,147 $ 51,884 China 40,578 9,157 49,735 23,996 7,831 31,827 United States 21,539 9,703 31,242 24,174 8,476 32,650 South Korea 27,418 1,337 28,755 35,426 751 36,177 Malaysia 16,157 87 16,244 3,034 161 3,195 Japan 6,716 3,221 9,937 3,477 4,227 7,704 Europe 3,824 4,267 8,091 6,466 5,544 12,010 Singapore 5,131 1,977 7,108 8,602 1,360 9,962 Rest of the world 1,157 1,618 2,775 1,729 938 2,667 Total $ 167,708 $ 36,199 $ 203,907 $ 153,641 $ 34,435 $ 188,076 Six Months Ended June 25, 2022 June 26, 2021 Probe Cards Systems Total Probe Cards Systems Total Market: Foundry & Logic $ 236,501 $ — $ 236,501 $ 217,136 $ — $ 217,136 DRAM 71,280 — 71,280 75,986 — 75,986 Flash 19,910 — 19,910 19,417 — 19,417 Systems — 73,390 73,390 — 62,173 62,173 Total $ 327,691 $ 73,390 $ 401,081 $ 312,539 $ 62,173 $ 374,712 Timing of revenue recognition: Products transferred at a point in time $ 325,537 $ 68,497 $ 394,034 $ 311,605 $ 55,555 $ 367,160 Products and services transferred over time 2,154 4,893 7,047 934 6,618 7,552 Total $ 327,691 $ 73,390 $ 401,081 $ 312,539 $ 62,173 $ 374,712 Geographical region: Taiwan $ 87,710 $ 15,379 $ 103,089 $ 91,471 $ 5,993 $ 97,464 China 73,369 14,765 88,134 61,827 12,625 74,452 United States 41,515 15,374 56,889 45,482 16,654 62,136 South Korea 52,299 3,957 56,256 53,427 1,835 55,262 Malaysia 37,674 769 38,443 22,922 203 23,125 Japan 11,501 7,818 19,319 8,726 8,299 17,025 Singapore 15,415 2,589 18,004 16,229 2,291 18,520 Europe 6,206 10,280 16,486 9,299 12,710 22,009 Rest of the world 2,002 2,459 4,461 3,156 1,563 4,719 Total $ 327,691 $ 73,390 $ 401,081 $ 312,539 $ 62,173 $ 374,712 |
Concentration of Credit and O_3
Concentration of Credit and Other Risks (Details) - Customer Concentration Risk | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Jun. 25, 2022 | Jun. 26, 2021 | Jun. 25, 2022 | Jun. 26, 2021 | Sep. 25, 2021 | |
Revenue Benchmark | Two Major Customers | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 10% | 10% | |||
Revenue from Contract with Customer Benchmark | Intel Corporation | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 20.90% | 16.20% | 20.90% | 22.10% | |
Revenue from Contract with Customer Benchmark | Samsung Electronics., LTD. | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 14.70% | ||||
Revenue from Contract with Customer Benchmark | Taiwan Semiconductor Manufacturing Co., LTD. | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 11% | 11.20% | |||
Revenue from Contract with Customer Benchmark | Customers Representing 10% or More of Total Revenues | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 20.90% | 41.90% | 20.90% | 33.30% | |
Accounts Receivable | Major Customer 1 | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 20% | 13.80% |
Inventories, net (Details)
Inventories, net (Details) - USD ($) $ in Thousands | Jun. 25, 2022 | Dec. 25, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 68,247 | $ 57,673 |
Work-in-progress | 52,619 | 35,935 |
Finished goods | 22,609 | 17,940 |
Inventories | $ 143,475 | $ 111,548 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) $ in Thousands | Jun. 09, 2022 USD ($) |
Woburn | |
Business Acquisition [Line Items] | |
Consideration transferred | $ 3,121 |
Acquisitions - Assets Acquired
Acquisitions - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jun. 09, 2022 | Jun. 25, 2022 | Dec. 25, 2021 | Dec. 26, 2020 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 212,357 | $ 212,299 | $ 212,761 | |
Woburn | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | $ 178 | |||
Inventories | 6,064 | |||
Property, plant and equipment | 479 | |||
Prepaid expenses and other current assets | 117 | |||
Other assets | 28 | |||
Tangible assets acquired | 6,866 | |||
Deferred revenue | (5,513) | |||
Accounts payable and accrued liabilities | (30) | |||
Total tangible assets acquired and liabilities assumed | 1,323 | |||
Goodwill | 1,798 | |||
Consideration transferred | $ 3,121 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 25, 2022 | Dec. 25, 2021 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 212,299 | $ 212,761 |
Foreign currency translation | (1,740) | (2,068) |
Goodwill, ending balance | 212,357 | 212,299 |
Baldwin Park | ||
Goodwill [Roll Forward] | ||
Goodwill, acquired during period | 352 | |
High Precision Devices, Inc. | ||
Goodwill [Roll Forward] | ||
Goodwill, acquired during period | 1,254 | |
Woburn | ||
Goodwill [Roll Forward] | ||
Goodwill, acquired during period | 1,798 | |
Probe Cards | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 178,424 | 178,072 |
Foreign currency translation | 0 | 0 |
Goodwill, ending balance | 178,424 | 178,424 |
Probe Cards | Baldwin Park | ||
Goodwill [Roll Forward] | ||
Goodwill, acquired during period | 352 | |
Probe Cards | High Precision Devices, Inc. | ||
Goodwill [Roll Forward] | ||
Goodwill, acquired during period | 0 | |
Probe Cards | Woburn | ||
Goodwill [Roll Forward] | ||
Goodwill, acquired during period | 0 | |
Systems | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 33,875 | 34,689 |
Foreign currency translation | (1,740) | (2,068) |
Goodwill, ending balance | 33,933 | 33,875 |
Systems | Baldwin Park | ||
Goodwill [Roll Forward] | ||
Goodwill, acquired during period | 0 | |
Systems | High Precision Devices, Inc. | ||
Goodwill [Roll Forward] | ||
Goodwill, acquired during period | $ 1,254 | |
Systems | Woburn | ||
Goodwill [Roll Forward] | ||
Goodwill, acquired during period | $ 1,798 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Additional information (Details) | 6 Months Ended |
Jun. 25, 2022 USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, impairment loss | $ 0 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 25, 2022 | Dec. 25, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 229,806 | $ 233,879 |
Accumulated Amortization | 198,934 | 197,537 |
Net | 30,872 | 36,342 |
Existing developed technologies | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 170,627 | 172,259 |
Accumulated Amortization | 149,338 | 148,784 |
Net | 21,289 | 23,475 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 50,827 | 51,270 |
Accumulated Amortization | 41,966 | 39,254 |
Net | 8,861 | 12,016 |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 7,952 | 8,054 |
Accumulated Amortization | 7,630 | 7,603 |
Net | 322 | 451 |
Backlog | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 0 | 1,896 |
Accumulated Amortization | 0 | 1,896 |
Net | 0 | 0 |
In-process research and development | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 400 | 400 |
Accumulated Amortization | 0 | 0 |
Net | $ 400 | $ 400 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2022 | Jun. 26, 2021 | Jun. 25, 2022 | Jun. 26, 2021 | |
Property, Plant and Equipment [Line Items] | ||||
Amortization of intangible assets | $ 2,333 | $ 7,095 | $ 4,702 | $ 13,900 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Rolling Maturity [Abstract] | ||||
Remainder of 2022 | 4,650 | 4,650 | ||
2023 | 6,968 | 6,968 | ||
2024 | 4,390 | 4,390 | ||
2025 | 4,142 | 4,142 | ||
2026 | 3,134 | 3,134 | ||
Thereafter | 7,188 | 7,188 | ||
Net | 30,472 | 30,472 | ||
Cost of revenues | ||||
Property, Plant and Equipment [Line Items] | ||||
Amortization of intangible assets | 788 | 5,505 | 1,596 | 10,595 |
Selling, general and administrative | ||||
Property, Plant and Equipment [Line Items] | ||||
Amortization of intangible assets | $ 1,545 | $ 1,590 | $ 3,106 | $ 3,305 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 25, 2022 | Dec. 25, 2021 |
Payables and Accruals [Abstract] | ||
Accrued compensation and benefits | $ 32,001 | $ 29,706 |
Accrued income and other taxes | 9,468 | 8,086 |
Accrued warranty | 3,978 | 2,805 |
Employee stock purchase plan contributions withheld | 4,789 | 4,693 |
Accrued restructuring charges | 592 | 2,478 |
Other accrued expenses | 4,007 | 3,068 |
Accrued liabilities | $ 54,835 | $ 50,836 |
Restructuring Charges - Narrati
Restructuring Charges - Narrative (Details) $ in Millions | Jun. 25, 2022 USD ($) |
Restructuring Cost and Reserve [Line Items] | |
Restructuring expected cost | $ 5 |
Employee Severance and Benefits | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring expected cost | 1.2 |
Contract Termination Costs | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring expected cost | 1.5 |
Inventory Impairments | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring expected cost | 2 |
Other Costs | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring expected cost | 0.3 |
Minimum | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring expected cost | 5 |
Minimum | Probe Cards | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring expected cost | 2.5 |
Minimum | Employee Severance and Benefits | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring expected cost | 1 |
Minimum | Contract Termination Costs | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring expected cost | 1.5 |
Minimum | Inventory Impairments | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring expected cost | 2 |
Minimum | Other Costs | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring expected cost | 0.5 |
Maximum | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring expected cost | 8.5 |
Maximum | Probe Cards | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring expected cost | 4.5 |
Maximum | Employee Severance and Benefits | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring expected cost | 2 |
Maximum | Contract Termination Costs | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring expected cost | 2.5 |
Maximum | Inventory Impairments | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring expected cost | 3 |
Maximum | Other Costs | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring expected cost | $ 1 |
Restructuring Charges - Restruc
Restructuring Charges - Restructuring Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 25, 2022 | Jun. 25, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 581 | $ 894 |
Probe Cards | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 227 | 269 |
Systems | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 354 | 625 |
Cost of revenues | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 454 | 593 |
Cost of revenues | Probe Cards | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 227 | 266 |
Cost of revenues | Systems | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 227 | 327 |
Research and development | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 53 | 199 |
Research and development | Probe Cards | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0 | 0 |
Research and development | Systems | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 53 | 199 |
Selling, general and administrative | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 74 | 102 |
Selling, general and administrative | Probe Cards | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0 | 3 |
Selling, general and administrative | Systems | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 74 | $ 99 |
Restructuring Charges - Changes
Restructuring Charges - Changes to the Restructuring Accrual (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 25, 2022 | Jun. 25, 2022 | |
Restructuring Reserve [Roll Forward] | ||
Accrual at beginning of period | $ 2,478 | |
Restructuring charges | $ 581 | 894 |
Cash payments | (2,071) | |
Non-cash settlement | (709) | |
Accrual at end of period | 592 | 592 |
Employee Severance and Benefits | ||
Restructuring Reserve [Roll Forward] | ||
Accrual at beginning of period | 1,028 | |
Restructuring charges | 185 | |
Cash payments | (621) | |
Non-cash settlement | 0 | |
Accrual at end of period | 592 | 592 |
Inventory Impairments | ||
Restructuring Reserve [Roll Forward] | ||
Accrual at beginning of period | 0 | |
Restructuring charges | 646 | |
Cash payments | 0 | |
Non-cash settlement | (646) | |
Accrual at end of period | 0 | 0 |
Contract Termination Costs | ||
Restructuring Reserve [Roll Forward] | ||
Accrual at beginning of period | 1,450 | |
Restructuring charges | 0 | |
Cash payments | (1,450) | |
Non-cash settlement | 0 | |
Accrual at end of period | $ 0 | $ 0 |
Fair Value and Derivative Ins_3
Fair Value and Derivative Instruments - Fair Value Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 25, 2022 | Dec. 25, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | $ 47,174 | $ 18,582 |
Marketable securities | 129,919 | 125,055 |
Total assets | 180,090 | 144,266 |
Total liabilities | (544) | |
Foreign exchange derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | (1,146) | |
Foreign exchange derivative contracts | Designated as hedging instrument | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | (489) | |
Promissory note receivable | Designated as hedging instrument | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative contracts | 1,007 | |
Interest rate swap derivative contracts | Designated as hedging instrument | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative contracts | 1,990 | 629 |
Derivative liability | (55) | |
Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 39,228 | 9,526 |
Commercial paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 3,393 | 1,000 |
Marketable securities | 22,480 | |
Commercial paper | Designated as hedging instrument | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 32,162 | |
U.S. treasuries | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 1,995 | 2,500 |
Marketable securities | 35,894 | 38,985 |
Certificates of deposit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 703 | 1,199 |
U.S. agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 2,558 | 5,556 |
Marketable securities | 5,912 | |
Corporate bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 64,930 | 52,709 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 41,223 | 12,026 |
Marketable securities | 35,894 | 38,985 |
Total assets | 77,117 | 51,011 |
Total liabilities | 0 | |
Level 1 | Foreign exchange derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | 0 | |
Level 1 | Foreign exchange derivative contracts | Designated as hedging instrument | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | 0 | |
Level 1 | Promissory note receivable | Designated as hedging instrument | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative contracts | 0 | |
Level 1 | Interest rate swap derivative contracts | Designated as hedging instrument | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative contracts | 0 | 0 |
Derivative liability | 0 | |
Level 1 | Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 39,228 | 9,526 |
Level 1 | Commercial paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Marketable securities | 0 | |
Level 1 | Commercial paper | Designated as hedging instrument | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 0 | |
Level 1 | U.S. treasuries | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 1,995 | 2,500 |
Marketable securities | 35,894 | 38,985 |
Level 1 | Certificates of deposit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 0 | 0 |
Level 1 | U.S. agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Marketable securities | 0 | |
Level 1 | Corporate bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 0 | 0 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 5,951 | 6,556 |
Marketable securities | 94,025 | 86,070 |
Total assets | 101,966 | 93,255 |
Total liabilities | (544) | |
Level 2 | Foreign exchange derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | (1,146) | |
Level 2 | Foreign exchange derivative contracts | Designated as hedging instrument | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | (489) | |
Level 2 | Promissory note receivable | Designated as hedging instrument | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative contracts | 0 | |
Level 2 | Interest rate swap derivative contracts | Designated as hedging instrument | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative contracts | 1,990 | 629 |
Derivative liability | (55) | |
Level 2 | Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Level 2 | Commercial paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 3,393 | 1,000 |
Marketable securities | 22,480 | |
Level 2 | Commercial paper | Designated as hedging instrument | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 32,162 | |
Level 2 | U.S. treasuries | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Marketable securities | 0 | 0 |
Level 2 | Certificates of deposit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 703 | 1,199 |
Level 2 | U.S. agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 2,558 | 5,556 |
Marketable securities | 5,912 | |
Level 2 | Corporate bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 64,930 | 52,709 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Marketable securities | 0 | 0 |
Total assets | 1,007 | 0 |
Total liabilities | 0 | |
Level 3 | Foreign exchange derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | 0 | |
Level 3 | Foreign exchange derivative contracts | Designated as hedging instrument | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | 0 | |
Level 3 | Promissory note receivable | Designated as hedging instrument | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative contracts | 1,007 | |
Level 3 | Interest rate swap derivative contracts | Designated as hedging instrument | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative contracts | 0 | 0 |
Derivative liability | 0 | |
Level 3 | Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Level 3 | Commercial paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Marketable securities | 0 | |
Level 3 | Commercial paper | Designated as hedging instrument | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 0 | |
Level 3 | U.S. treasuries | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Marketable securities | 0 | 0 |
Level 3 | Certificates of deposit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 0 | 0 |
Level 3 | U.S. agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Marketable securities | 0 | |
Level 3 | Corporate bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | $ 0 | $ 0 |
Fair Value and Derivative Ins_4
Fair Value and Derivative Instruments - Foreign Currency Forward Contracts (Details) - Jun. 25, 2022 - Foreign Exchange Forward € in Thousands, ₩ in Thousands, ¥ in Thousands, $ in Thousands, $ in Thousands | EUR (€) | USD ($) | JPY (¥) | KRW (₩) | TWD ($) |
Derivative [Line Items] | |||||
Derivative, notional amount | $ (7,289) | ||||
Buy | Euro Dollar | |||||
Derivative [Line Items] | |||||
Derivative, notional amount | € (21,445) | (24,117) | |||
Buy | Korean Won | |||||
Derivative [Line Items] | |||||
Derivative, notional amount | (779) | ₩ (1,010,988) | |||
Sell | Japanese Yen | |||||
Derivative [Line Items] | |||||
Derivative, notional amount | (16,633) | ¥ (2,247,411) | |||
Sell | Taiwan Dollar | |||||
Derivative [Line Items] | |||||
Derivative, notional amount | $ (974) | $ (28,890) |
Fair Value and Derivative Ins_5
Fair Value and Derivative Instruments - Additional Information (Details) - USD ($) | Jun. 25, 2022 | Dec. 25, 2021 | Jun. 26, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets measured at fair value on non-recurring basis | $ 180,090,000 | $ 144,266,000 | |
Liabilities measured at fair value on non-recurring basis | $ 544,000 | ||
Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets measured at fair value on non-recurring basis | 0 | $ 0 | |
Liabilities measured at fair value on non-recurring basis | $ 0 | $ 0 |
Warranty (Details)
Warranty (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 25, 2022 | Jun. 26, 2021 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Balance at beginning of period | $ 2,805 | $ 3,918 |
Accruals | 3,846 | 3,472 |
Settlements | (2,673) | (3,132) |
Balance at end of period | $ 3,978 | $ 4,258 |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment, net (Details) - USD ($) $ in Thousands | Jun. 25, 2022 | Dec. 25, 2021 |
Property, Plant and Equipment [Line Items] | ||
Sub-total | $ 449,319 | $ 433,331 |
Less: Accumulated depreciation and amortization | (323,779) | (312,700) |
Net, property, plant and equipment | 125,540 | 120,631 |
Construction-in-process | 32,274 | 25,924 |
Total | 157,814 | 146,555 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Sub-total | 4,751 | 4,751 |
Building and building improvements | ||
Property, Plant and Equipment [Line Items] | ||
Sub-total | 44,429 | 41,722 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Sub-total | 263,851 | 252,632 |
Computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Sub-total | 45,727 | 44,667 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Sub-total | 7,434 | 7,293 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Sub-total | $ 83,127 | $ 82,266 |
Stockholders_ Equity and Stoc_3
Stockholders’ Equity and Stock-Based Compensation - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 25, 2022 | Jun. 26, 2021 | Jun. 25, 2022 | Jun. 26, 2021 | Dec. 25, 2021 | May 23, 2022 | Oct. 26, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Purchase of common stock value retired through repurchase program | $ 44,931,000 | $ 18,213,000 | $ 54,328,000 | $ 23,951,000 | |||
PRSUs | Equity Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Awards granted (in shares) | 0 | ||||||
Common Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock repurchase program authorized amount | $ 75,000,000 | $ 50,000,000 | |||||
Purchase of common stock retired through repurchase program (in shares) | 767,083 | 676,408 | 622,400 | ||||
Purchase of common stock value retired through repurchase program | $ 28,400,000 | $ 26,000,000 | $ 24,000,000 | ||||
Amount remaining for future repurchases | $ 46,600,000 | $ 46,600,000 |
Stockholders_ Equity and Stoc_4
Stockholders’ Equity and Stock-Based Compensation - Restricted Stock Unit Activity (Details) - Equity Incentive Plan - Restricted Stock Units | 6 Months Ended |
Jun. 25, 2022 $ / shares shares | |
Units | |
Beginning balance (in shares) | shares | 2,166,934 |
Awards granted (in shares) | shares | 63,697 |
Awards vested (in shares) | shares | (338,825) |
Awards canceled (in shares) | shares | (51,941) |
Ending balance (in shares) | shares | 1,839,865 |
Weighted Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 28.63 |
Awards granted (in dollars per share) | $ / shares | 41.25 |
Awards vested (in dollars per share) | $ / shares | 16.73 |
Awards canceled (in dollars per share) | $ / shares | 30.23 |
Ending balance (in dollars per share) | $ / shares | $ 31.22 |
Stockholders_ Equity and Stoc_5
Stockholders’ Equity and Stock-Based Compensation - ESPP Activity (Details) - Employee stock purchase plan | 6 Months Ended |
Jun. 25, 2022 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares issued (in shares) | shares | 157,642 |
Weighted average per share purchase price (in dollars per share) | $ 35.81 |
Weighted average per share discount from the fair value of our common stock on the date of issuance (in dollars per share) | $ (6.93) |
Stockholders_ Equity and Stoc_6
Stockholders’ Equity and Stock-Based Compensation - Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2022 | Jun. 26, 2021 | Jun. 25, 2022 | Jun. 26, 2021 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | $ 6,358 | $ 6,588 | $ 13,878 | $ 13,665 |
Cost of revenues | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | 734 | 1,079 | 1,812 | 2,414 |
Research and development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | 1,695 | 1,663 | 3,681 | 3,352 |
Selling, general and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | $ 3,929 | $ 3,846 | $ 8,385 | $ 7,899 |
Stockholders_ Equity and Stoc_7
Stockholders’ Equity and Stock-Based Compensation - Unrecognized Compensation Costs (Details) $ in Thousands | 6 Months Ended |
Jun. 25, 2022 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Expense | $ 34,917 |
Average Expected Recognition Period in Years | 1 year 9 months 7 days |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Expense | $ 27,430 |
Average Expected Recognition Period in Years | 1 year 9 months 18 days |
Performance restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Expense | $ 7,202 |
Average Expected Recognition Period in Years | 1 year 8 months 26 days |
Employee stock purchase plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Expense | $ 285 |
Average Expected Recognition Period in Years | 7 months 9 days |
Net Income per Share (Details)
Net Income per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2022 | Jun. 26, 2021 | Jun. 25, 2022 | Jun. 26, 2021 | |
Earnings Per Share [Abstract] | ||||
Weighted-average shares used in computing basic net income per share (in shares) | 77,897 | 77,463 | 78,071 | 77,530 |
Add potentially dilutive securities (in shares) | 1,313 | 2,003 | 1,352 | 2,091 |
Weighted-average shares used in computing diluted net income per share (in shares) | 79,210 | 79,466 | 79,423 | 79,621 |
Securities not included as they would have been antidilutive (in shares) | 23 | 128 | 0 | 118 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Jun. 25, 2022 |
Lessee, Lease, Description [Line Items] | |
Operating lease, renewal term | 20 years |
Operating lease, weighted average remaining lease term | 6 years |
Operating lease, weighted average discount rate | 3.69% |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, term of contract | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, term of contract | 7 years |
Automobiles | Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, term of contract | 1 year |
Automobiles | Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, term of contract | 3 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2022 | Jun. 26, 2021 | Jun. 25, 2022 | Jun. 26, 2021 | |
Leases [Abstract] | ||||
Operating lease expense | $ 2,183 | $ 2,048 | $ 4,404 | $ 4,171 |
Short-term lease expense | 76 | 45 | 116 | 82 |
Variable lease expense | 677 | 426 | 1,135 | 963 |
Total lease expense | $ 2,936 | $ 2,519 | $ 5,655 | $ 5,216 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Payments Under Leases (Details) - USD ($) $ in Thousands | Jun. 25, 2022 | Dec. 25, 2021 |
Leases [Abstract] | ||
Remainder of 2022 | $ 4,319 | |
2023 | 7,564 | |
2024 | 7,224 | |
2025 | 7,187 | |
2026 | 6,505 | |
Thereafter | 9,143 | |
Total minimum lease payments | 41,942 | |
Less: interest | (4,588) | |
Present value of net minimum lease payments | 37,354 | |
Less: current portion | (7,843) | $ (7,901) |
Total long-term operating lease liabilities | $ 29,511 | $ 31,009 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 25, 2022 | Dec. 25, 2021 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Performance obligations | $ 9.7 | |
Contract assets | 2 | $ 0.9 |
Contract with customer, liability | 32.2 | $ 24.2 |
Revenue recognized included in contracts | $ 16.5 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-06-26 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, remaining performance obligation, percentage | 66.90% | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 6 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, remaining performance obligation, percentage | 27.70% | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-12-31 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, remaining performance obligation, percentage | 5.40% | |
Revenue, remaining performance obligation, expected timing of satisfaction, period |
Operating Segments and Enterp_3
Operating Segments and Enterprise-Wide Information - Additional Information (Details) | 6 Months Ended |
Jun. 25, 2022 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Operating Segments and Enterp_4
Operating Segments and Enterprise-Wide Information - Operating Results by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2022 | Jun. 26, 2021 | Jun. 25, 2022 | Jun. 26, 2021 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 203,907 | $ 188,076 | $ 401,081 | $ 374,712 |
Gross profit | $ 94,369 | $ 76,283 | $ 188,593 | $ 152,989 |
Gross margin | 46.30% | 40.60% | 47% | 40.80% |
Probe Cards | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 167,708 | $ 153,641 | $ 327,691 | $ 312,539 |
Systems | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 36,199 | 34,435 | 73,390 | 62,173 |
Operating segments | Probe Cards | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 167,708 | 153,641 | 327,691 | 312,539 |
Gross profit | $ 78,420 | $ 66,600 | $ 155,622 | $ 136,915 |
Gross margin | 46.80% | 43.30% | 47.50% | 43.80% |
Operating segments | Systems | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 36,199 | $ 34,435 | $ 73,390 | $ 62,173 |
Gross profit | $ 18,276 | $ 16,907 | $ 37,683 | $ 30,506 |
Gross margin | 50.50% | 49.10% | 51.30% | 49.10% |
Operating segments | Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 0 | $ 0 | $ 0 | $ 0 |
Gross profit | $ (2,327) | $ (7,224) | $ (4,712) | $ (14,432) |
Gross margin |
Operating Segments and Enterp_5
Operating Segments and Enterprise-Wide Information - Revenue by Segment, Recognition Type, and Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2022 | Jun. 26, 2021 | Jun. 25, 2022 | Jun. 26, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 203,907 | $ 188,076 | $ 401,081 | $ 374,712 |
Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 167,708 | 153,641 | 327,691 | 312,539 |
Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 36,199 | 34,435 | 73,390 | 62,173 |
Taiwan | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 50,020 | 51,884 | 103,089 | 97,464 |
Taiwan | Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 45,188 | 46,737 | 87,710 | 91,471 |
Taiwan | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 4,832 | 5,147 | 15,379 | 5,993 |
China | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 49,735 | 31,827 | 88,134 | 74,452 |
China | Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 40,578 | 23,996 | 73,369 | 61,827 |
China | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 9,157 | 7,831 | 14,765 | 12,625 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 31,242 | 32,650 | 56,889 | 62,136 |
United States | Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 21,539 | 24,174 | 41,515 | 45,482 |
United States | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 9,703 | 8,476 | 15,374 | 16,654 |
South Korea | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 28,755 | 36,177 | 56,256 | 55,262 |
South Korea | Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 27,418 | 35,426 | 52,299 | 53,427 |
South Korea | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,337 | 751 | 3,957 | 1,835 |
Malaysia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 16,244 | 3,195 | 38,443 | 23,125 |
Malaysia | Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 16,157 | 3,034 | 37,674 | 22,922 |
Malaysia | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 87 | 161 | 769 | 203 |
Japan | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 9,937 | 7,704 | 19,319 | 17,025 |
Japan | Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,716 | 3,477 | 11,501 | 8,726 |
Japan | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3,221 | 4,227 | 7,818 | 8,299 |
Singapore | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 7,108 | 9,962 | 18,004 | 18,520 |
Singapore | Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5,131 | 8,602 | 15,415 | 16,229 |
Singapore | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,977 | 1,360 | 2,589 | 2,291 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 8,091 | 12,010 | 16,486 | 22,009 |
Europe | Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3,824 | 6,466 | 6,206 | 9,299 |
Europe | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 4,267 | 5,544 | 10,280 | 12,710 |
Rest of the world | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,775 | 2,667 | 4,461 | 4,719 |
Rest of the world | Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,157 | 1,729 | 2,002 | 3,156 |
Rest of the world | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,618 | 938 | 2,459 | 1,563 |
Products transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 199,782 | 184,013 | 394,034 | 367,160 |
Products transferred at a point in time | Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 166,701 | 153,129 | 325,537 | 311,605 |
Products transferred at a point in time | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 33,081 | 30,884 | 68,497 | 55,555 |
Products and services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 4,125 | 4,063 | 7,047 | 7,552 |
Products and services transferred over time | Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,007 | 512 | 2,154 | 934 |
Products and services transferred over time | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3,118 | 3,551 | 4,893 | 6,618 |
Foundry & Logic | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 122,380 | 103,726 | 236,501 | 217,136 |
Foundry & Logic | Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 122,380 | 103,726 | 236,501 | 217,136 |
Foundry & Logic | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
DRAM | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 36,843 | 42,088 | 71,280 | 75,986 |
DRAM | Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 36,843 | 42,088 | 71,280 | 75,986 |
DRAM | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Flash | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 8,485 | 7,827 | 19,910 | 19,417 |
Flash | Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 8,485 | 7,827 | 19,910 | 19,417 |
Flash | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 36,199 | 34,435 | 73,390 | 62,173 |
Systems | Probe Cards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Systems | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 36,199 | $ 34,435 | $ 73,390 | $ 62,173 |