Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Feb. 16, 2024 | Jul. 01, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 30, 2023 | ||
Current Fiscal Year End Date | --12-30 | ||
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, State or Province | 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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,891.7 | ||
Entity Common Stock, Shares Outstanding (in shares) | 77,598,433 | ||
Documents Incorporated by Reference | Portions of the registrant's definitive Proxy Statement for the 2024 Annual Meeting of Stockholders, which will be filed within 120 days of the end of the registrant's fiscal year ended December 30, 2023, are incorporated by reference in Part III hereof. Except with respect to information specifically incorporated by reference in this Annual Report on Form 10-K, the Proxy Statement is not deemed to be filed as a part of this Annual Report on Form 10-K. | ||
Entity Central Index Key | 0001039399 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Dec. 30, 2023 | |
Audit Information [Abstract] | |
Auditor Name | KPMG, LLP |
Auditor Location | Portland, Oregon |
Auditor Firm ID | 185 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 177,812 | $ 109,130 |
Marketable securities | 150,507 | 129,006 |
Accounts receivable, net | 102,957 | 88,143 |
Inventories, net | 111,685 | 123,157 |
Restricted cash | 1,152 | 1,221 |
Prepaid expenses and other current assets | 29,667 | 23,895 |
Total current assets | 573,780 | 474,552 |
Restricted cash | 2,309 | 2,631 |
Operating lease, right-of-use-assets | 30,519 | 31,362 |
Property, plant and equipment, net | 204,399 | 189,848 |
Goodwill | 201,090 | 211,444 |
Intangibles, net | 12,938 | 26,751 |
Deferred tax assets | 78,964 | 67,646 |
Other assets | 2,795 | 3,994 |
Total assets | 1,106,794 | 1,008,228 |
Current liabilities: | ||
Accounts payable | 63,857 | 69,308 |
Accrued liabilities | 41,037 | 42,115 |
Current portion of term loans, net of unamortized issuance cost of $5 and $5 | 1,075 | 1,045 |
Deferred revenue | 16,704 | 29,846 |
Operating lease liabilities | 8,422 | 7,353 |
Total current liabilities | 131,095 | 149,667 |
Term loans, less current portion, net of unamortized issuance cost of $55 and $60 | 13,314 | 14,389 |
Deferred tax liabilities | 0 | 2,732 |
Long-term operating lease liabilities | 25,334 | 27,587 |
Deferred grant | 18,000 | 0 |
Other liabilities | 10,247 | 5,568 |
Total liabilities | 197,990 | 199,943 |
Stockholders’ equity: | ||
Preferred stock | 0 | 0 |
Common stock | 77 | 77 |
Additional paid-in capital | 861,448 | 844,842 |
Accumulated other comprehensive loss | (4,052) | (5,578) |
Accumulated income (deficit) | 51,331 | (31,056) |
Total stockholders’ equity | 908,804 | 808,285 |
Total liabilities and stockholders’ equity | $ 1,106,794 | $ 1,008,228 |
CONSOLIDATED BALANCE SHEETS (PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Current unamortized debt issuance costs | $ 5 | $ 5 |
Noncurrent unamortized debt issuance costs | $ 55 | $ 60 |
Preferred stock par value (in USD per share) | $ 0.001 | $ 0.001 |
Preferred stock authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock issued (in shares) | 0 | 0 |
Preferred stock outstanding (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001 |
Common stock authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock issued (in shares) | 77,376,903 | 76,914,590 |
Common stock outstanding (in shares) | 77,376,903 | 76,914,590 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Income Statement [Abstract] | |||
Revenues | $ 663,102 | $ 747,937 | $ 769,674 |
Cost of revenues | 404,522 | 451,928 | 446,907 |
Gross profit | 258,580 | 296,009 | 322,767 |
Operating expenses: | |||
Research and development | 115,765 | 109,222 | 100,937 |
Selling, general and administrative | 133,012 | 131,875 | 123,792 |
Total operating expenses | 248,777 | 241,097 | 224,729 |
Gain on sale of business | 72,953 | 0 | 0 |
Operating income | 82,756 | 54,912 | 98,038 |
Interest income | 7,217 | 2,220 | 569 |
Interest expense | (421) | (579) | (602) |
Other income (expense), net | (285) | 1,317 | 495 |
Income before income taxes | 89,267 | 57,870 | 98,500 |
Provision for income taxes | 6,880 | 7,132 | 14,576 |
Net income | $ 82,387 | $ 50,738 | $ 83,924 |
Net income per share: | |||
Basic (in USD per share) | $ 1.06 | $ 0.65 | $ 1.08 |
Diluted (in USD per share) | $ 1.05 | $ 0.65 | $ 1.06 |
Weighted-average number of shares used in per share calculations: | |||
Basic (in shares) | 77,370 | 77,578 | 77,787 |
Diluted (in shares) | 78,159 | 78,201 | 79,133 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 82,387 | $ 50,738 | $ 83,924 |
Other comprehensive income (loss), net of tax: | |||
Translation adjustments | 107 | (4,864) | (5,995) |
Unrealized gains (losses) on available-for-sale marketable securities | 2,022 | (2,025) | (598) |
Unrealized gains (losses) on derivative instruments | (603) | 2,760 | (742) |
Other comprehensive income (loss), net of tax | 1,526 | (4,129) | (7,335) |
Comprehensive income | $ 83,913 | $ 46,609 | $ 76,589 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Income (Deficit) |
Beginning balances (in shares) at Dec. 26, 2020 | 77,437,997 | ||||
Beginning balances at Dec. 26, 2020 | $ 744,084 | $ 78 | $ 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) | 378,584 | ||||
Issuance of common stock under the Employee Stock Purchase Plan | 9,809 | $ 0 | 9,809 | ||
Issuance of common stock pursuant to exercise of options for cash (in shares) | 100,000 | ||||
Issuance of common stock pursuant to exercise of options for cash | 844 | $ 0 | 844 | ||
Issuance of common stock pursuant to vesting of restricted stock units (in shares) | 946,325 | ||||
Issuance of common stock pursuant to vesting of restricted stock units, net of stock withheld for tax | (20,603) | $ 1 | (20,604) | ||
Stock repurchased during the period (in shares) | 622,400 | ||||
Purchase and retirement of common stock | (24,038) | $ (1) | (24,037) | ||
Stock-based compensation | 29,095 | 29,095 | |||
Other comprehensive income (loss) | (7,335) | (7,335) | |||
Net income | 83,924 | 83,924 | |||
Ending balances (in shares) at Dec. 25, 2021 | 78,240,506 | ||||
Ending balances 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) | 316,861 | ||||
Issuance of common stock under the Employee Stock Purchase Plan | 10,457 | $ 0 | 10,457 | ||
Issuance of common stock pursuant to exercise of options for cash (in shares) | 6,000 | ||||
Issuance of common stock pursuant to exercise of options for cash | 42 | $ 0 | 42 | ||
Issuance of common stock pursuant to vesting of restricted stock units (in shares) | 728,524 | ||||
Issuance of common stock pursuant to vesting of restricted stock units, net of stock withheld for tax | (15,705) | $ 1 | (15,706) | ||
Stock repurchased during the period (in shares) | 2,377,301 | ||||
Purchase and retirement of common stock | (82,328) | $ (2) | (82,326) | ||
Stock-based compensation | 33,430 | 33,430 | |||
Other comprehensive income (loss) | (4,129) | (4,129) | |||
Net income | $ 50,738 | 50,738 | |||
Ending balances (in shares) at Dec. 31, 2022 | 76,914,590 | 76,914,590 | |||
Ending balances at Dec. 31, 2022 | $ 808,285 | $ 77 | 844,842 | (5,578) | (31,056) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock under the Employee Stock Purchase Plan (in shares) | 363,190 | ||||
Issuance of common stock under the Employee Stock Purchase Plan | 8,822 | $ 0 | 8,822 | ||
Issuance of common stock pursuant to vesting of restricted stock units (in shares) | 635,495 | ||||
Issuance of common stock pursuant to vesting of restricted stock units, net of stock withheld for tax | (10,687) | $ 1 | (10,688) | ||
Stock repurchased during the period (in shares) | 536,372 | ||||
Purchase and retirement of common stock | (19,801) | $ (1) | (19,800) | ||
Stock-based compensation | 38,272 | 38,272 | |||
Other comprehensive income (loss) | 1,526 | 1,526 | |||
Net income | $ 82,387 | 82,387 | |||
Ending balances (in shares) at Dec. 30, 2023 | 77,376,903 | 77,376,903 | |||
Ending balances at Dec. 30, 2023 | $ 908,804 | $ 77 | $ 861,448 | $ (4,052) | $ 51,331 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Cash flows from operating activities: | |||
Net income | $ 82,387 | $ 50,738 | $ 83,924 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 30,603 | 28,646 | 25,772 |
Amortization | 6,850 | 9,391 | 18,747 |
Amortization (accretion) of discount on investments | (2,828) | 182 | 403 |
Reduction in the carrying amount of right-of-use assets | 7,389 | 8,153 | 7,172 |
Stock-based compensation expense | 38,616 | 31,337 | 29,384 |
Deferred income tax provision (benefit) | (12,100) | (6,343) | 3,869 |
Gain on sale of business | (72,953) | 0 | 0 |
Provision for excess and obsolete inventories | 15,003 | 24,632 | 15,544 |
Acquired inventory step-up amortization | 501 | 476 | 723 |
Loss on disposal of long-lived assets | 0 | 296 | 449 |
Non-cash restructuring charges | 0 | 200 | 1,646 |
Gain on contingent consideration | 0 | 0 | (95) |
Foreign currency transaction losses | 2,282 | 2,251 | 1,582 |
Other than temporary impairment on debt receivable | 1,083 | 0 | 0 |
Changes in assets and liabilities: | |||
Accounts receivable | (23,304) | 26,028 | (9,086) |
Inventories | (9,488) | (28,780) | (31,655) |
Prepaid expenses and other current assets | (3,057) | (4,591) | 3,808 |
Other assets | (146) | 66 | (326) |
Accounts payable | 1,319 | 3,899 | (6,589) |
Accrued liabilities | (2,424) | (8,002) | (725) |
Other liabilities | 4,660 | (63) | 285 |
Deferred revenues | (10,176) | 1,286 | 1,974 |
Deferred grant | 18,000 | 0 | 0 |
Operating lease liabilities | (7,615) | (8,016) | (7,442) |
Net cash provided by operating activities | 64,602 | 131,786 | 139,364 |
Cash flows from investing activities: | |||
Acquisition of property, plant and equipment | (56,027) | (65,254) | (66,496) |
Acquisition of business, net of cash acquired | 0 | (3,350) | 0 |
Proceeds from sale of business | 101,785 | 0 | 0 |
Purchase of promissory note receivable | 0 | (1,000) | 0 |
Purchases of marketable securities | (135,462) | (101,894) | (149,979) |
Proceeds from maturities of marketable securities | 118,753 | 95,794 | 91,734 |
Net cash provided by (used in) investing activities | 29,049 | (75,704) | (124,741) |
Cash flows from financing activities: | |||
Proceeds from issuances of common stock | 8,822 | 10,499 | 10,653 |
Purchase of common stock through stock repurchase program | (19,801) | (82,328) | (24,038) |
Tax withholdings related to net share settlements of equity awards | (10,687) | (15,705) | (20,604) |
Payments on term loan | (1,045) | (8,398) | (9,337) |
Payment of contingent consideration | 0 | 0 | 3,873 |
Net cash used in financing activities | (22,711) | (95,932) | (47,199) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (2,649) | (2,510) | (3,180) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 68,291 | (42,360) | (35,756) |
Cash, cash equivalents and restricted cash, beginning of year | 112,982 | 155,342 | 191,098 |
Cash, cash equivalents and restricted cash, end of year | 181,273 | 112,982 | 155,342 |
Supplemental disclosure of non-cash investing and financing activities: | |||
Operating lease, right-of-use assets obtained in exchange for lease obligations | 6,491 | 4,975 | 12,254 |
Increase (decrease) in accounts payable and accrued liabilities related to property, plant and equipment purchases | (5,961) | 7,469 | 2,711 |
Supplemental disclosure of cash flow information: | |||
Income taxes paid, net | 17,385 | 10,917 | 7,957 |
Cash paid for interest, net | 422 | 535 | 643 |
Operating cash outflows from operating leases | 9,135 | 8,913 | 8,520 |
Reconciliation of cash, cash equivalents and restricted cash: | |||
Cash and cash equivalents | 177,812 | 109,130 | 151,010 |
Restricted cash, current | 1,152 | 1,221 | 2,233 |
Restricted cash | 2,309 | 2,631 | 2,099 |
Total cash, cash equivalents and restricted cash | $ 181,273 | $ 112,982 | $ 155,342 |
Formation and Nature of Busines
Formation and Nature of Business | 12 Months Ended |
Dec. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Formation and Nature of Business | Formation and Nature of Business FormFactor, Inc. is a leading provider of essential test and measurement technologies along the full semiconductor product lifecycle - from characterization, modeling, reliability, and design de-bug, to qualification and production test. We provide a broad range of high-performance probe cards, analytical probes, probe stations, metrology systems, thermal systems, and cryogenic systems to both semiconductor companies and scientific institutions. Our products provide electrical information from a variety of semiconductor and electro-optical devices and integrated circuits from early research, through development, to high-volume production. Customers use our products and services to accelerate profitability by optimizing device performance, reducing scrap, and improving yields. Design, development and manufacturing operations are located in Livermore, Carlsbad, and Baldwin Park, California; Beaverton, Oregon; Boulder, Colorado; and Woburn, Massachusetts, all in the United States; Munich and Thiendorf, Germany, and sales, service and support operations are located in the United States, Germany, France, Italy, South Korea, Japan, Taiwan, China and Singapore. Fiscal Year Our fiscal year ends on the last Saturday in December. The fiscal years ended on December 30, 2023, December 31, 2022 and December 25, 2021 consisted of 52 weeks, 53 weeks, and 52 weeks, respectively. The first three fiscal quarters in our fiscal year ended December 31, 2022 contained 13 weeks, and the fourth fiscal quarter contained 14 weeks. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Consolidation and Foreign Currency Translation The consolidated financial statements include our accounts and those of our wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated. The functional currencies of certain of our foreign subsidiaries are the local currencies and, accordingly, all assets and liabilities of these foreign operations are translated to U.S. Dollars at current period-end exchange rates, and revenues and expenses are translated to U.S. Dollars using average exchange rates in effect during the period. The gains and losses from the foreign currency translation of these subsidiaries' financial statements are included as a separate component of stockholders' equity on our Consolidated Balance Sheets under Accumulated other comprehensive loss. Certain other of our foreign subsidiaries use the U.S. Dollar as their functional currency. Accordingly, monetary assets and liabilities in non-functional currencies of these subsidiaries are remeasured using exchange rates in effect at the end of the period. Revenues and costs in local currency are remeasured using average exchange rates for the period, except for costs related to those balance sheet items that are remeasured using historical exchange rates. The resulting remeasurement gains and losses are included in the Consolidated Statements of Income as a component of Other income (expense), net as incurred. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Estimates may change as new information is obtained. We believe that the estimates, assumptions and judgments involved in revenue recognition, fair value of marketable securities, fair value of derivative financial instruments used to hedge both foreign currency and interest rate exposures, allowance for credit losses, reserves for product warranty, valuation of obsolete and slow moving inventory, assets acquired and liabilities assumed in business combinations, legal contingencies, valuation of goodwill, the assessment of recoverability of long-lived assets, valuation and recognition of stock-based compensation, loss contingencies, provision for income taxes and valuation of deferred tax assets have the greatest potential impact on our consolidated financial statements. Actual results could differ from those estimates. Business Acquisitions Our consolidated financial statements include the operations of acquired businesses after the completion of their respective acquisitions. We account for acquired businesses using the acquisition method of accounting, which requires, among other things, that assets acquired and liabilities assumed be recognized at their estimated fair values as of the acquisition date, and that the fair value of acquired intangibles be recorded on the balance sheet. Transaction costs are expensed as incurred. Any excess of the purchase price over the assigned fair values of the net assets acquired is recorded as goodwill. Cash and Cash Equivalents and Marketable Securities Cash and cash equivalents consist of deposits and financial instruments which are readily convertible into cash and have original maturities of 90 days or less at the time of acquisition. Marketable securities consist primarily of highly liquid investments with maturities of greater than 90 days when purchased. We classify our available-for-sale marketable securities as current assets because they represent investments of cash available for current operations. As a result, the Company recorded all its marketable securities in short-term investments regardless of the contractual maturity date of the securities. Furthermore, we report them at fair value with the related unrealized gains and losses included in Accumulated other comprehensive loss in our Consolidated Balance Sheets. Any unrealized losses which are considered to be other-than-temporary are recorded in Other income (expense), net, in the Consolidated Statements of Income. Realized gains and losses on the sale of marketable securities are determined using the specific-identification method and recorded in Other income (expense), net, in the Consolidated Statements of Income. All of our available-for-sale investments are subject to a periodic impairment review. If an available-for-sale debt security’s fair value is less than its amortized cost basis, then we evaluate whether the decline is the result of a credit loss, in which case an impairment is recorded through an allowance for credit losses. Unrealized gains and losses not attributable to credit losses are included, net of tax, in Accumulated other comprehensive loss in our Consolidated Balance Sheets. We did not record an allowance for credit losses related to our available-for-sale investments during fiscal 2023. Foreign Exchange Management We transact business in various foreign currencies. We enter into forward foreign exchange contracts in an effort to mitigate the risks associated with currency fluctuations on certain foreign currency balance sheet exposures and certain operational costs denominated in local currency impacting our statement of income. 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 Consolidated Balance Sheets with changes in fair value recorded within Other income (expense), net in our Consolidated Statements 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 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 Consolidated Statements of Income as the impact of the hedge transaction. We do not use derivative financial instruments for trading or speculative purposes. Accounts Receivable and Allowance for Credit Losses The majority of our accounts receivable are derived from sales to large multinational semiconductor manufacturers throughout the world, are recorded at their invoiced amount, and do not bear interest. In order to monitor potential credit losses, we perform ongoing credit evaluations of our customers' financial condition. An allowance for credit losses is maintained based upon our assessment of the expected collectability of all accounts receivable. The allowance for credit losses is reviewed and assessed for adequacy on a quarterly basis. We take into consideration (1) any circumstances of which we are aware of a customer's inability to meet its financial obligations and (2) our judgments as to prevailing economic conditions in the industry and their impact on our customers. If circumstances change, and the financial condition of our customers is adversely affected and they are unable to meet their financial obligations, we may need to take additional allowances, which would result in an increase in our operating expense. Activity related to our allowance for credit losses was as follows (in thousands): Fiscal Year Ended December 30, 2023 December 31, 2022 December 25, 2021 Balance at beginning of year $ 168 $ 195 $ 248 Charges (reversals) to costs and expenses 333 (27) (53) Balance at end of year $ 501 $ 168 $ 195 Inventories We state our inventories at the lower of cost (principally standard cost which approximates actual cost on a first in, first out basis) or net realizable value. We regularly assess the value of our inventory and will periodically write down its value for estimated excess inventory and product obsolescence based upon an analysis of existing inventory quantities compared to estimated future consumption. Future consumption is estimated based upon assumptions about how past consumption, recent purchases, backlog and other factors may indicate future consumption. On a quarterly basis, we review existing inventory quantities in comparison to our past consumption, recent purchases, backlog and other factors to determine what inventory quantities, if any, may not be sellable. Based on this analysis, we record an adjustment to the cost basis of inventory when evidence exists that the net realizable value of inventory is lower than its cost, which occurs when we have excess and/or obsolete inventory. Once the value is adjusted, the original cost of our inventory, less the related inventory write-down, represents the new cost basis. Reversal of these write downs is recognized only when the related inventory has been scrapped or sold. Shipping and handling costs are classified as a component of Cost of revenues in the Consolidated Statements of Income. We design, manufacture and sell a custom product into a market that has been subject to cyclicality and significant demand fluctuations. Many of our products are complex, custom to a specific chip design and have to be delivered on short lead-times. Probe cards are manufactured in low volumes, but, for certain materials, the purchases are often subject to minimum order quantities in excess of the actual underlying probe card demand. It is not uncommon for us to acquire production materials and commence production activities based on estimated production yields and forecasted demand prior to, or in excess of, actual demand for our probe cards. These factors result in normal recurring inventory valuation charges to Cost of revenues. Inventory write downs totaled $15.0 million, $24.6 million and $15.5 million for fiscal 2023, 2022 and 2021, respectively. Restricted Cash Restricted cash is comprised primarily of funds held by our foreign subsidiaries for employee obligations, office leases, environmental remediation, and temporary customs import permits Property, Plant, and Equipment Property, plant and equipment is stated at cost less accumulated depreciation and amortization. Depreciation is recorded on a straight-line method. Machinery and equipment, computer equipment and software, and furniture and fixtures are depreciated over 3 to 5 years. Leasehold improvements are amortized over 7 years. Building and building improvements are depreciated over 30 years. Construction-in-progress assets are not depreciated until the assets are placed in service. Upon sale or retirement of assets, the cost and related accumulated depreciation or amortization are removed from the Consolidated Balance Sheets and the resulting gain or loss, if any, is reflected in Operating income in our Consolidated Statements of Income. Leases The Company determines if an arrangement is a lease at its inception. Right-of-use (“ROU”) assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. We use our estimated incremental borrowing rate in determining the present value of lease payments considering the term of the lease, which is derived from information available at the lease commencement date. The lease term includes renewal options when it is reasonably certain that the option will be exercised and excludes termination options. To the extent that the Company’s agreements have variable lease payments, the Company includes variable lease payments that depend on an index or a rate and excludes those that depend on facts or circumstances occurring after the commencement date, other than the passage of time. Lease expense for these leases is recognized on a straight-line basis over the lease term. We have elected not to recognize ROU assets and lease liabilities that arise from short-term leases for any class of underlying asset. Operating leases are included in Operating lease, right-of-use-assets, Operating lease liabilities, and Long-term operating lease liabilities in our Consolidated Balance Sheets. Goodwill Goodwill represents the excess of the purchase price over the fair value of identifiable assets acquired and liabilities assumed. Goodwill is not amortized, rather assessed, at least annually, for impairment at a reporting unit level. Impairment of goodwill exists when the carrying amount of a reporting unit exceeds its fair value. A goodwill impairment loss is recognized for the amount that the carrying amount of the reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. If the fair value of a reporting unit exceeds the carrying amount, goodwill of the reporting unit is not considered impaired. We evaluate impairment by first assessing qualitative factors to determine whether it is necessary to perform a quantitative impairment test. If we determine, as a result of the qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the quantitative impairment test is required. Otherwise, no further testing is required. We perform our annual goodwill impairment test in the fourth quarter of each year by assessing qualitative factors, including, but not limited to, an assessment of our market capitalization, which was significantly higher than our book value. Based on these tests, we determined that the quantitative impairment test was not required and no impairment charges were recorded in fiscal 2023, 2022 or 2021. The evaluation of goodwill for impairment requires the exercise of judgment. In the event of future changes in business conditions, we will be required to reassess and update our forecasts and estimates used in future impairment analysis. If the results of these analysis are lower than current estimates, a material impairment charge may result at that time. See Note 11, Goodwill and Intangible Assets , for additional information. Intangible Assets Intangible assets consist of acquisition related intangible assets and intellectual property. The intangible assets are being amortized over periods of 1 to 10 years, which reflect the pattern in which economic benefits of the assets are expected to be realized. We perform a review of intangible assets when facts and circumstances indicate that the useful life is shorter than originally estimated or that the carrying amount of assets may not be recoverable. Such facts and circumstances include significant adverse changes in the business climate or legal factors; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the intangible assets; and current expectation that the intangible assets will more likely than not be sold or disposed of before the end of their estimated useful lives. We assess the recoverability of identified intangible assets by comparing the projected undiscounted net cash flows associated with the related asset or group of assets over their remaining lives against their respective carrying amounts. Impairments, if any, are based on the excess of the carrying amount over the fair value of those assets. See Note 11, Goodwill and Intangible Assets , for additional information. Impairment of Long-Lived Assets We test long-lived assets or asset groups, such as property, plant and equipment and intangible assets, for recoverability when events or changes in circumstances indicate that their carrying amounts may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed of before the end of its estimated useful life. Recoverability is assessed based on the carrying amounts of the asset or asset group and the sum of the undiscounted cash flows expected to result from the use and the eventual disposal of the asset. An impairment loss is recognized when the carrying amount is not recoverable and exceeds fair value. Concentration of Credit Risk and Other Risks and Uncertainties Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash equivalents, marketable securities and accounts receivable. Our cash equivalents and marketable securities are held in safekeeping by large, credit-worthy financial institutions. We invest our excess cash primarily in U.S. banks, government and agency bonds, money market funds and corporate obligations. We have established guidelines relative to credit ratings, diversification and maturities that seek to maintain safety and liquidity. Deposits in these banks may exceed the amounts of insurance provided on such deposits. To date, we have not experienced any losses on our deposits of cash and cash equivalents. We market and sell our products to a relatively narrow base of customers and generally do not require collateral. The following customers represented 10% or more of our revenues: Fiscal Year Ended December 30, 2023 December 31, 2022 December 25, 2021 Intel Corporation 17.1 % 19.0 % 20.4 % Samsung Electronics Co., LTD. * * 11.4 % * Less than 10% of revenues. At December 30, 2023, two customers accounted for 17.8% and 11.0% of gross accounts receivable. At December 31, 2022, one customer accounted for 13.8% of gross accounts receivable. No other customers accounted for 10% or more of gross accounts receivable for these fiscal period ends. We are exposed to non-performance risk by counterparties on our derivative instruments used in hedging activities. We seek to minimize risk by diversifying our hedging program across multiple financial institutions. These counterparties are large international financial institutions, and, to date, no such counterparty has failed to meet its financial obligations to us. Government Assistance In January 2023, we received $18.0 million in cash from a California Competes Grant (the “Grant”) awarded from the California Governor’s Office of Business and Economic Development. The Grant requires us to create and maintain full-time jobs and make significant infrastructure investments within California over a 5-year term. If we do not meet the requirements of the Grant, we will be required to repay all or a portion of the Grant. The Grant is included in our Consolidated Balance Sheets within Deferred grant and we will recognize the Grant over time when earned as an offset to Cost of revenues and Operating expenses within our Consolidated Statements of Income. We have presented the proceeds from the Grant as cash provided by operating activities within our Consolidated Statements of Cash Flows as the Grant is to offset operations. No amounts were recognized as an offset to expenses in fiscal 2023 and the full grant remains deferred. Revenue Recognition Revenue is recognized upon transferring control of products and services, and the amounts recognized reflect the consideration we expect to be entitled to receive in exchange for these products and services. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities. An arrangement may include some or all of the following products and services: probe cards, systems, accessories, engineering services, installation services, service contracts and extended warranty contracts. We sell our products and services direct to customers and to partners in two distribution channels: global direct sales force and through a combination of manufacturers’ representatives and distributors. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. In contracts with multiple performance obligations, we identify each performance obligation and evaluate whether the performance obligation is distinct within the context of the contract at contract inception. Performance obligations that are not distinct at contract inception are combined and accounted for as one unit of account. Generally, the performance obligations in a contract are considered distinct within the context of the contract and are accounted for as separate units of account. Our products may be customized to our customers’ specifications; however, control of our product is typically transferred to the customer at the point in time the product is either shipped or delivered, depending on the terms of the arrangement, as the criteria for over time recognition is not met. In limited circumstances, substantive acceptance by the customer exists which results in the deferral of revenue until acceptance is formally received from the customer. Judgment may be required in determining if the acceptance clause is substantive. In certain instances control of products is transferred to the customer over time based on performance and in those instances we utilize an appropriate input or output measure to determine to what extent control has transferred to the customer. Judgment may be required in determining an appropriate measure of performance. Installation services are routinely provided to customers purchasing our systems. Installation services are a distinct performance obligation apart from the systems and are recognized in the period they are performed. Service contracts, which include repair and maintenance service contracts, and extended warranty contracts are also distinct performance obligations and are recognized over the contractual service period, which ranges from one to three years. For these service contracts recognized over time, we use the input measure of days elapsed to measure progress. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. In determining the transaction price, we evaluate whether the price is subject to refund or adjustment to determine the net consideration to which we expect to be entitled. We generally do not grant return privileges, except for defective products during the warranty period. Sales incentives and other programs that we may make available to our customers are considered to be a form of variable consideration, which is estimated in determining the contract’s transaction price to be allocated to the performance obligations. For contracts with multiple performance obligations, we allocate the contract’s transaction price to each performance obligation based on its relative stand-alone selling price. The stand-alone selling prices are determined based on observable prices, which are the prices at which we separately sell these products. For items which do not have observable prices, we use our best estimate of the stand-alone selling prices. Transaction price allocated to the remaining performance obligations: On December 30, 2023, we had $12.4 million of remaining performance obligations, which were comprised of deferred service contracts, extended warranty contracts, and contracts with over time revenue recognition that are not yet delivered. We expect to recognize approximately 86.7% of our remaining performance obligations as revenue in fiscal 2024, approximately 9.1% in fiscal 2025, and approximately 4.2% in fiscal 2026 and thereafter. The foregoing excludes the value of remaining performance obligations that 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 December 30, 2023 and December 31, 2022 were $3.8 million and $1.9 million, respectively, and are reported on the 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 Consolidated Balance Sheets on a contract-by-contract basis at the end of each reporting period as a component of Deferred revenue and Other liabilities. Contract liabilities totaled $18.0 million and $30.9 million at December 30, 2023 and December 31, 2022, respectively. During fiscal 2023, we recognized $27.5 million of revenue that was included in contract liabilities as of December 31, 2022. 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 17, Segments and Geographic Information , for further details. Warranty Obligations 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 incurred in correcting a product failure. We continuously monitor product returns for warranty and maintain a reserve for the related expenses based upon our historical experience and any specifically identified field 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. Warranty costs are reflected in the Consolidated Statement of Income as a Cost of revenues. A reconciliation of the changes in our warranty liability is as follows (in thousands): Fiscal Year Ended December 30, 2023 December 31, 2022 December 25, 2021 Balance at beginning of year $ 4,199 $ 2,805 $ 3,918 Accruals 7,771 7,746 5,759 Settlements (8,687) (6,352) (6,872) Reduction - FRT divestiture (106) — — Balance at end of year $ 3,177 $ 4,199 $ 2,805 Research and Development Research and development expenses include expenses related to product development, engineering and material costs. All research and development costs are expensed as incurred. Income Taxes We utilize the asset and liability method of accounting for income taxes, under which deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences reverse and for operating losses and tax credit carryforwards. We estimate our provision for income taxes and amounts ultimately payable or recoverable in numerous tax jurisdictions around the world. Estimates involve interpretations of regulations and are inherently complex. Resolution of income tax treatments in individual jurisdictions may not be known for many years after completion of any fiscal year. We are required to evaluate the realizability of our deferred tax assets on an ongoing basis to determine whether there is a need for a valuation allowance with respect to such deferred tax assets. A valuation allowance is recorded when it is more likely than not that some or all of the deferred tax assets will not be realized. In evaluating the ability to recover deferred tax assets, we consider all available positive and negative evidence giving greater weight to our recent cumulative income, our historical ability to utilize net operating losses in recent years, and our forecast of future taxable income, including the reversal of temporary differences and the implementation of feasible and prudent tax planning strategies. We recognize and measure uncertain tax positions taken or expected to be taken in a tax return if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized are then measured based on the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement. We report a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. We adjust these reserves in light of changing facts and circumstances, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will impact the provision for income taxes in the period in which such determination is made. The provision for income taxes includes the impact of reserve provisions and changes to reserves, as well as the related net interest. We recognize interest and penalties related to unrecognized tax benefits within the income tax provision. Accrued interest and penalties are included within the related tax liability in the Consolidated Balance Sheets. We file annual income tax returns in multiple taxing jurisdictions around the world. A number of years may elapse before an uncertain tax position is audited and finally resolved. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, we believe that our related liability reflects the most likely outcome. We adjust the liability, as well as the related interest, in light of changing facts and circumstances. Settlement of any particular position could require the use of cash. Stock-Based Compensation We recognize compensation expense for all stock-based awards based on the grant-date estimated fair values. The value of the portion of the award that is ultimately expected to vest is recognized as expense ratably over the requisite service periods in our Consolidated Statements of Income. The fair value of restricted stock units (“RSUs”) is measured based on the closing market price of our common stock on the date of grant. The fair value of Performance RSUs (“PRSU”) is based on certain market performance criteria and is measured using a Monte Carlo simulation pricing model. See Note 13, Stockholders' Equity , and Note 14, Stock-Based Compensation , for additional information. Net Income Per Share Basic net income per share is computed by dividing net income by the weighted-average number of common shares outstanding for the period. Diluted net income per share is computed giving effect to all potentially dilutive common stock and common stock equivalents, including stock options, RSUs and common stock subject to repurchase. The following table reconciles the shares used in calculating basic net income per share and diluted net income per share (in thousands): Fiscal Year Ended December 30, 2023 December 31, 2022 December 25, 2021 Weighted-average shares used in computing basic net income per share 77,370 77,578 77,787 Add potentially dilutive securities 789 623 1,346 Weighted-average shares used in computing basic and diluted net income per share 78,159 78,201 79,133 Accumulated other comprehensive loss Accumulated other comprehensive loss (“AOCL”) includes the following items, the impact of which has been excluded from earnings and reflected as components of stockholders' equity as shown below (in thousands): December 30, 2023 December 31, 202 |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 30, 2023 | |
Balance Sheet Components [Abstract] | |
Balance Sheet Components | Balance Sheet Components Marketable Securities Marketable securities consisted of the following (in thousands): December 30, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. treasuries $ 45,772 $ 91 $ (26) $ 45,837 Commercial paper 13,319 — (2) 13,317 Corporate bonds 81,612 267 (529) 81,350 U.S. agency securities 10,086 9 (92) 10,003 $ 150,789 $ 367 $ (649) $ 150,507 December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. treasuries $ 25,498 $ — $ (479) $ 25,019 Commercial paper 24,893 — (53) 24,840 Corporate bonds 68,845 — (1,449) 67,396 Certificates of deposit 720 — (14) 706 U.S. agency securities 11,295 — (250) 11,045 $ 131,251 $ — $ (2,245) $ 129,006 We typically invest in highly-rated securities with low probabilities of default. Our investment policy requires investments to be rated single A or better, limits the types of acceptable investments, concentration as to security holder and duration of the investment. The gross unrealized gains and losses in fiscal 2023 and 2022 were caused primarily by changes in interest rates. The longer the duration of marketable securities, the more susceptible they are to changes in market interest rates and bond yields. As yields increase, those securities with a lower yield-at-cost show a mark-to-market unrealized loss. We anticipate recovering the full cost of the securities either as market conditions improve or as the securities mature. Accordingly, we believe that the unrealized losses are not as a result of a credit loss. The contractual maturities of marketable securities were as follows (in thousands): December 30, 2023 December 31, 2022 Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 94,772 $ 94,370 $ 77,663 $ 76,902 Due after one year to five years 56,017 56,137 53,588 52,104 $ 150,789 $ 150,507 $ 131,251 $ 129,006 See also Note 10, Fair Value . Inventories, net Inventories consisted of the following (in thousands): December 30, 2023 December 31, 2022 Raw materials $ 50,808 $ 55,726 Work-in-progress 39,336 46,067 Finished goods 21,541 21,364 $ 111,685 $ 123,157 Property, Plant and Equipment, net Property, plant and equipment, net consisted of the following (in thousands): December 30, 2023 December 31, 2022 Land $ 17,124 $ 17,136 Building and building improvements 46,526 44,932 Machinery and equipment 286,215 276,180 Computer equipment and software 46,866 45,813 Furniture and fixtures 7,490 7,540 Leasehold improvements 91,063 86,500 Sub-total 495,284 478,101 Less: Accumulated depreciation and amortization (358,021) (335,711) Net property, plant and equipment 137,263 142,390 Construction-in-progress 67,136 47,458 Total $ 204,399 $ 189,848 Accrued Liabilities Accrued liabilities consisted of the following (in thousands): December 30, 2023 December 31, 2022 Accrued compensation and benefits $ 20,073 $ 15,864 Accrued income and other taxes 8,205 12,817 Accrued employee stock purchase plan contributions withheld 4,263 4,585 Accrued warranty 3,177 4,199 Accrued restructuring charges — 1,249 Other accrued expenses 5,319 3,401 $ 41,037 $ 42,115 |
Acquisition
Acquisition | 12 Months Ended |
Dec. 30, 2023 | |
Business Combinations [Abstract] | |
Acquisition | Acquisitions 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 $3.4 million. This acquisition added cryogen-free dilution refrigerators capable of cooling to sub-10 millikelvin to our product portfolio, which is required for operation of superconducting quantum computers. The acquisition price was allocated to the tangible and identified intangible assets acquired and liabilities assumed as of the closing date of the acquisition based upon their respective fair values. The fair values assigned to assets acquired and liabilities assumed were based on management’s assumptions as of the reporting date. Goodwill represents the excess of purchase price over the fair value assigned to the assets acquired and liabilities assumed and is allocated to the HPD reporting unit within the Systems reportable segment. The identified intangible asset, developed technology, has a useful life of three years. The fair value of assets acquired, including goodwill and intangibles, and liabilities assumed for the purchase are as follows (in thousands): Amount Accounts receivable 178 Inventories 7,041 Property, plant and equipment 479 Prepaid expenses and other assets 117 Other asset 28 Tangible assets acquired 7,843 Deferred revenue (5,513) Accounts payable and accrued liabilities (30) Total net tangible assets acquired and liabilities assumed 2,300 Intangible assets 500 Goodwill 550 Net assets acquired $ 3,350 |
Divesture
Divesture | 12 Months Ended |
Dec. 30, 2023 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Divesture | Divestiture On September 18, 2023, the Company announced entry into a definitive agreement to sell its FRT Metrology (“FRT”) business to Camtek Ltd. (“Camtek”) for $100 million in cash, subject to customary purchase price adjustments. The Company acquired FRT GmbH in fiscal 2019 for total consideration of $24.4 million, net of cash acquired. Headquartered in Bergisch Gladbach, Germany, the FRT business is a leading supplier of high-precision metrology solutions for the Advanced Packaging and Silicon Carbide markets, and was part of the Company's Systems segment. On November 1, 2023, we closed on the sale of the FRT business to Camtek and received net cash proceeds of $99.8 million, net of cash transferred and transaction expenses, and after customary adjustments for indebtedness and changes in net working capital. The disposition of the FRT business did not meet the criteria to be classified as a discontinued operation in the Company’s financial statements because the disposition did not represent a strategic shift that had, or will have, a major effect on the Company’s operations and financial results. The following table summarizes the fair value of the sale proceeds received in connection with the divestiture, which are subject to further post-closing adjustment (in thousands): November 1, 2023 Fair value of sale consideration $ 99,031 Estimated working capital adjustment 4,029 Cash transferred to the buyer at closing (2,049) Direct costs to sell (1,225) Fair value of sale consideration $ 99,786 The carrying amount of net assets associated with the FRT business was approximately $26.8 million. The major classes of assets and liabilities sold consisted of the following: November 1, 2023 ASSETS Accounts receivable, net $ 7,738 Inventories, net 6,446 Other current assets 635 Total current assets 14,819 Intangibles, net 6,897 Goodwill 10,660 Other assets 1,612 Total assets $ 33,988 LIABILITIES Current liabilities $ 4,300 Other liabilities 2,856 Total liabilities $ 7,156 As a result of the divestiture, the Company recognized a pre-tax gain of $73.0 million. The Company recorded an income tax liability associated with the divestiture of approximately $5.9 million. |
Debt
Debt | 12 Months Ended |
Dec. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Our debt consisted of the following (in thousands): December 30, 2023 December 31, 2022 Term loan $ 14,448 $ 15,499 Less unamortized issuance costs (59) (65) Term loan less issuance costs $ 14,389 $ 15,434 On June 22, 2020, we entered into an $18.0 million 15-year credit facility loan agreement (the “Building Term Loan”) with MUFG Union Bank, National Association (“Union Bank”). The proceeds of the Building Term Loan were used to purchase a building adjacent to our leased facilities in Livermore, California. On May 19, 2023, we amended the Building Term Loan, replacing the benchmark reference rate LIBOR with SOFR, with no change to the amount or timing of contractual cash flows. The Building Term Loan bears interest at a rate equal to the applicable SOFR rate, plus 0.1148%, plus 1.75% per annum. Interest payments are payable in monthly installments over a fifteen-year period. The interest rate at December 30, 2023 was 7.20% before consideration of the interest rate swap. On March 17, 2020, we entered into an interest rate swap agreement with Union Bank to hedge the interest payments on the Building Term Loan for the notional amount of $18.0 million. As future levels of LIBOR over the life of the loan were uncertain, we entered into this interest-rate swap agreement to hedge the exposure in interest rate risks associated with movement in LIBOR rates. This agreement was amended on May 19, 2023 to replace the benchmark reference rate LIBOR with SOFR to match the Building Term Loan agreement (as amended). After the amendment, the interest rate swap continues to convert our floating-rate interest into a fixed-rate of 2.75%. As of December 30, 2023, the notional amount of the loan that is subject to this interest rate swap was $14.4 million. See Note 10, Fair Value , for additional information. The obligations under the Building Term Loan are guaranteed by a deed of trust covering certain real property and improvements and certain personal property used in connection therewith. The deed of trust creates a first priority lien or encumbrance on the property with only such exceptions as may be approved by Union Bank in writing. The Building Term Loan contains covenants customary for financing of this type. As of December 30, 2023, the balance outstanding pursuant to the Building Term Loan was $14.4 million. Future principal and interest payments on our term loans as of December 30, 2023, based on the interest rate in effect at that date were as follows (in thousands): Payments Due In Fiscal Year 2024 2025 2026 2027 2028 2029 and thereafter Total Term loan - principal payments $ 1,080 $ 1,111 $ 1,142 $ 1,175 $ 1,208 $ 8,732 $ 14,448 Term loans - interest payments (1) 1,025 937 857 773 688 2,163 6,443 $ 2,105 $ 2,048 $ 1,999 $ 1,948 $ 1,896 $ 10,895 $ 20,891 (1) Represents our minimum interest payment commitment at 7.20% per annum, excluding the interest rate swap described above. |
Leases
Leases | 12 Months Ended |
Dec. 30, 2023 | |
Leases [Abstract] | |
Leases | Leases Our operating lease, right-of-use assets relate to real estate space under non-cancelable operating lease agreements for commercial and industrial space, as well as for our corporate headquarters located in Livermore, California. Our leases have remaining terms of 1 to 11 years, and some leases include options to extend up to 20 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 4.6 years at December 30, 2023 and the weighted-average discount rate was 4.60%. The components of lease expense were as follows (in thousands): Lease Expense December 30, 2023 December 31, 2022 December 25, 2021 Operating lease expense $ 8,453 $ 8,595 $ 8,485 Short-term lease expense 524 385 180 Variable lease expense 2,389 2,393 1,842 $ 11,366 $ 11,373 $ 10,507 Future minimum payments under our non-cancelable operating leases were as follows as of December 30, 2023 (in thousands): Fiscal Year Amount 2024 $ 9,337 2025 9,215 2026 7,586 2027 7,154 2028 3,870 Thereafter 1,432 Total minimum lease payments 38,594 Less: interest (4,838) Present value of net minimum lease payments 33,756 Less: current portion (8,422) Total long-term operating lease liabilities $ 25,334 |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Dec. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges 2022 Restructuring Plan On October 25, 2022, we adopted a restructuring plan (“2022 restructuring plan”) to align our cost structure with reduced demand levels, by streamlining and improving the efficiency and business effectiveness of our operations. This plan included lowering headcount by approximately 13% of our workforce. The Company recognized 2022 restructuring plan charges of approximately $1.1 million for the year ended December 30, 2023, all within the Probe Cards segment. The Company has recognized total 2022 restructuring plan charges of $8.1 million for severance and employee-related costs, including $0.3 million for stock-based compensation, with $7.1 million within the Probe Cards segment, $0.5 million within the Systems segment, and $0.5 million within Corporate. We do not expect to incur additional material costs related to the 2022 restructuring plan. 2021 Restructuring Plan On September 25, 2021, we adopted restructuring plans (“2021 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 personnel related costs to sever, relocate, or retain select employees. Additionally, as part of these plans we have undertaken actions to adjust capacity for certain product offerings, which included contract termination costs to satisfy contract obligations. The Company recognized 2021 restructuring plans charges of approximately $0.8 million for the year ended December 30, 2023, with $0.3 million within the Probe Cards segment and $0.5 million within the Systems segment. The Company has recognized total 2021 restructuring plan charges of $13.3 million, with $10.1 million within the Probe Cards segment and $3.2 million within the Systems segment, and were comprised of $1.4 million of severance and employee-related costs, $2.0 million in contract and lease termination costs, $9.4 million in inventory impairments and other inventory related costs, and $0.5 million of cost related to impairment of leasehold improvements, facility exits and other costs. We do not expect to incur additional material costs related to the 2021 Restructuring Plans. Total restructuring charges for both the 2022 and 2021 restructuring plans included in our Consolidated Statements of Income were as follows (in thousands): Fiscal Year Ended December 30, 2023 December 31, 2022 December 25, 2021 Cost of revenues $ 357 $ 11,775 $ 3,205 Research and development 291 1,498 869 Selling, general and administrative 1,187 2,166 50 $ 1,835 $ 15,439 $ 4,124 Changes to the restructuring accrual during the years ended December 31, 2022 and December 30, 2023 were as follows (in thousands): Employee Stock-based Compensation Inventory Property and Contract Total December 25, 2021 $ 1,028 $ — $ — $ — $ 1,450 $ 2,478 Restructuring charges 7,269 — 7,629 186 502 15,586 Cash payments (7,048) — (1,112) (112) (1,719) (9,991) Adjustment to restructuring charges — — — — (147) (147) Non-cash settlement — — (6,517) (74) (86) (6,677) December 31, 2022 1,249 $ — — — — 1,249 Restructuring charges 917 295 390 — 233 1,835 Cash payments (2,166) — (89) — (233) (2,488) Non-cash settlement — (295) (301) — — (596) December 30, 2023 $ — $ — $ — $ — $ — $ — |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments 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 Consolidated Balance Sheets with changes in fair value recorded within Other income (expense), net in our Consolidated Statements 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 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 Consolidated Statements of Income as the impact of the hedge transaction. At December 30, 2023, we expect to reclassify $0.3 million of the amount accumulated in other comprehensive loss to earnings during the next 12 months, due to the recognition in earnings of the hedged forecasted transactions. 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 December 30, 2023 will mature by the fourth quarter of fiscal 2024. The following table provides information about our foreign currency forward contracts outstanding as of December 30, 2023 (in thousands): Currency Contract Position Contract Amount (Local Currency) Contract Amount (U.S. Dollars) Euro Buy 26,597 $ 29,224 Japanese Yen Sell 2,961,827 21,073 Korean Won Buy 2,334,329 1,815 Taiwan Dollar Sell 79,324 2,611 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. The location and amount of gains related to non-designated derivative instruments in the Consolidated Statements of Income were as follows (in thousands): Derivatives Not Designated as Hedging Instruments Location of Gain Recognized Fiscal Year Ended December 30, 2023 December 31, 2022 December 25, 2021 Foreign exchange forward contracts Other income (expense), net $ 2,504 $ 2,439 $ 1,585 The location and amount of gains (losses) related to foreign currency derivative instruments designated as cash flow hedges on our Consolidated Statements of Income was as follows (in thousands): Amount of Gain or (Loss) Recognized in AOCL on Derivative Location of Gain or (Loss) Reclassified from AOCL into Income Amount of Gain or (Loss) Reclassified from AOCL into Income Fiscal 2023 $ 160 Cost of revenues $ 222 Research and development 75 Selling, general and administrative 80 $ 377 Fiscal 2022 $ (1,688) Cost of revenues $ (1,816) Research and development (376) Selling, general and administrative (456) $ (2,648) Fiscal 2021 $ (1,096) Cost of revenues $ 184 Research and development 3 Selling, general and administrative 64 $ 251 Interest Rate Swaps During fiscal 2020 we entered into an interest rate swap agreement with Union Bank to hedge the interest payments on the Building Term Loan for the notional amount of $18.0 million. As future levels of LIBOR over the life of the loan are uncertain, we entered into this interest-rate swap agreement to hedge the exposure in interest rate risks associated with movement in LIBOR rates. By entering into the agreement, we convert a floating rate interest at one-month LIBOR plus 1.75% into a fixed rate interest at 2.75%. This agreement was amended in fiscal 2023 to replace the benchmark reference rate LIBOR with SOFR to match the Building Term Loan agreement (as amended). After the amendment, the interest rate swap continues to convert our floating-rate interest into a fixed-rate at 2.75%. As of December 30, 2023, the notional amount of the loan that is subject to this interest rate swap was $14.4 million. See Note 6, Debt , for additional information. For accounting purposes, the interest-rate swap contracts qualify for and are designated as cash flow hedges. All hedging relationships are formally documented, and the hedges are designed to offset changes to future cash flows on hedged transactions. We evaluate hedge effectiveness at hedge inception and on an ongoing basis. The fair value of our interest rate swap contracts are determined at the end of each reporting period based on valuation models that use interest rate yield curves as inputs. The cash flows associated with the interest rate swaps are reported in Net cash provided by operating activities in our 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. The impact of the interest rate swaps on the Consolidated Statements of Income was as follows (in thousands): Amount of Gain Recognized in AOCL on Derivative (Effective Portion) Location of Gain Reclassified from AOCL into Income (Effective Portion) Amount of Gain or (Loss) Reclassified from AOCL into Income (Effective Portion) Fiscal 2023 $ 230 Other income (expense), net $ 615 Fiscal 2022 1,906 Other income (expense), net 106 Fiscal 2021 451 Other income (expense), net (154) See also Note 10, Fair Value . |
Fair Value
Fair Value | 3 Months Ended |
Apr. 01, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 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 fiscal 2023, 2022 or 2021. The carrying values of Cash, Accounts receivable, net, Restricted cash, Prepaid expenses and other current assets, Accounts payable, and Accrued liabilities approximate fair value due to their short maturities. No changes were made to our valuation techniques during fiscal 2023. 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 of our investments have a sufficient level of trading volume to demonstrate that the fair value is appropriate. 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): December 30, 2023 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 110,980 $ — $ — $ 110,980 U.S. treasuries 4,581 — — 4,581 115,561 — — 115,561 Marketable securities: U.S. treasuries 45,837 — — 45,837 U.S. agency securities — 10,003 — 10,003 Corporate bonds — 81,350 — 81,350 Commercial paper — 13,317 — 13,317 45,837 104,670 — 150,507 Foreign exchange derivative contracts — 284 — 284 Interest rate swap derivative contracts — 1,989 — 1,989 Total assets $ 161,398 $ 106,943 $ — $ 268,341 Liabilities: Foreign exchange derivative contracts $ — $ (30) $ — $ (30) Total liabilities $ — $ (30) $ — $ (30) December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 21,279 $ — $ — $ 21,279 Commercial paper — 4,969 — 4,969 U.S. agency securities — 996 — 996 21,279 5,965 — 27,244 Marketable securities: U.S. treasuries 25,019 — — 25,019 Certificates of deposit — 706 — 706 U.S. agency securities — 11,045 — 11,045 Corporate bonds — 67,396 — 67,396 Commercial paper — 24,840 — 24,840 25,019 103,987 — 129,006 Foreign exchange derivative contracts — 664 — 664 Promissory note receivable — — 943 943 Interest rate swap derivative contracts — 2,374 — 2,374 Total assets $ 46,298 $ 112,990 $ 943 $ 160,231 Liabilities: Foreign exchange derivative contracts $ — $ (193) $ — $ (193) Total liabilities $ — $ (193) $ — $ (193) 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, Acquisitions and Note 8, Restructuring Charges, there were no assets or liabilities measured at fair value on a non-recurring basis during fiscal 2023, 2022 or 2021. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill Goodwill by reportable segment was as follows (in thousands): Probe Cards Systems Total Goodwill, as of December 25, 2021 $ 178,424 $ 33,875 $ 212,299 Addition - Woburn acquisition — 550 550 Foreign currency translation — (1,405) (1,405) Goodwill, as of December 31, 2022 178,424 33,020 211,444 Reduction - FRT divestiture — (10,660) (10,660) Foreign currency translation — 306 306 Goodwill, as of December 30, 2023 $ 178,424 $ 22,666 $ 201,090 Intangible Assets Intangible assets were as follows (in thousands): December 30, 2023 December 31, 2022 Other Intangible Assets Gross Accumulated Amortization Net Gross Accumulated Amortization Net Existing developed technologies $ 159,593 $ 148,445 $ 11,148 $ 171,441 $ 151,212 $ 20,229 Trade name 7,808 7,728 80 7,972 7,759 213 Customer relationships 48,022 46,712 1,310 50,912 45,003 5,909 In-process research and development 400 — 400 400 — 400 $ 215,823 $ 202,885 $ 12,938 $ 230,725 $ 203,974 $ 26,751 Amortization expense was included in our Consolidated Statements of Income as follows (in thousands): Fiscal Year Ended December 30, December 31, December 25, Cost of revenues $ 3,081 $ 3,225 $ 12,269 Selling, general and administrative 3,769 6,166 6,478 $ 6,850 $ 9,391 $ 18,747 The estimated future amortization of definite-lived intangible assets, excluding in-process research and development, is as follows (in thousands): Fiscal Year Amount 2024 $ 2,561 2025 2,330 2026 1,630 2027 1,630 2028 1,630 Thereafter 2,757 Total $ 12,538 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases See Note 7, Leases . Government Assistance In January 2023, we received a $18.0 million Grant from the California Governor’s Office of Business and Economic Development. The Grant requires us to create and maintain full-time jobs and make significant infrastructure investments within California over a 5-year term. If we do not meet the requirements of the Grant, we will be required to repay all or a portion of the Grant. See Note 2, Summary of Significant Accounting Policies under the caption “Government Assistance,” for additional information. Environmental Matters We are subject to U.S. federal, state, local, and foreign governmental laws and regulations relating to the protection of the environment, including those governing the discharge of pollutants into the air and water, the management and disposal of hazardous substances and wastes, the clean-up of contaminated sites and the maintenance of a safe workplace. We believe that we comply in all material respects with the environmental laws and regulations that apply to us as of December 30, 2023. There are no matters pending that we currently believe are reasonably possible of having a material impact to our business, consolidated financial condition, results of operations or cash flows. In the future, we may receive notices of violations of environmental regulations, or otherwise learn of such violations. Environmental contamination or violations may negatively impact our business. Indemnification Arrangements We have entered, and may from time to time in the ordinary course of our business enter, into contractual arrangements with third parties that include indemnification obligations. Under these contractual arrangements, we have agreed to defend, indemnify and/or hold the third party harmless from and against certain liabilities. These arrangements include indemnities in favor of customers in the event that our products or services infringe a third party's intellectual property, or cause property damage or other indemnities in favor of our lessors in connection with facility leasehold liabilities that we may cause. In addition, we have entered into indemnification agreements with our directors and certain of our officers, and our bylaws contain indemnification obligations in favor of our directors, officers and agents. These indemnity arrangements may limit the type of the claim, the total amount that we can be required to pay in connection with the indemnification obligation and the time within which an indemnification claim can be made. The duration of the indemnification obligation may vary, and for most arrangements, survives the agreement term and is indefinite. We believe that substantially all of our indemnity arrangements provide either for limitations on the maximum potential future payments we could be obligated to make, or for limitations on the types of claims and damages we could be obligated to indemnify, or both. However, it is not possible to determine or reasonably estimate the maximum potential amount of future payments under these indemnification obligations due to the varying terms of such obligations, a lack of history of prior indemnification claims, the unique facts and circumstances involved in each particular contractual arrangement and in each potential future claim for indemnification, and the contingency of any potential liabilities upon the occurrence of events that are not reasonably determinable. We have not had any material requests for indemnification under these arrangements. We have not recorded any liabilities for these indemnification arrangements on our Consolidated Balance Sheets as of December 30, 2023 or December 31, 2022. Legal Matters From time to time, we are subject to legal proceedings and claims in the ordinary course of business, the outcomes of which cannot be estimated with certainty. Our ability to estimate the outcomes may change in the near term and the effect of any such change could have a material adverse effect on our financial position, results of operations or cash flows. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 30, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Preferred Stock We have authorized 10,000,000 shares of undesignated preferred stock, $0.001 par value, none of which is issued and outstanding. Our Board of Directors shall determine the rights, preferences, privileges and restrictions of the preferred stock, including dividend rights, conversion rights, voting rights, terms of redemption, liquidation preferences, sinking fund terms and the number of shares constituting any series or the designation of any series. Common Stock Each share of common stock has the right to one vote. The holders of common stock are also entitled to receive dividends whenever funds are legally available and when declared by the Board of Directors, subject to the prior rights of holders, if any, of all classes of stock outstanding having priority rights as to dividends. No dividends have been declared or paid as of December 30, 2023. 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 and 2022, we repurchased and retired 622,400 shares of common stock for $24.0 million and 676,408 shares of common stock for $26.0 million, respectively, utilizing the remaining shares available for repurchase under the program. On May 20, 2022, our Board of Directors authorized a two-year program to repurchase up to $75 million of outstanding common stock to offset potential dilution from issuance of common stock under our stock-based compensation programs. During fiscal 2022 and 2023, we repurchased and retired 1,700,893 shares of common stock for $56.4 million and 504,352 shares of common stock for $18.6 million, respectively, utilizing the remaining shares available for repurchase under the program. On October 30, 2023, our Board of Directors authorized an additional program to repurchase up to $75 million of outstanding common stock, also with the primary purpose of offsetting potential dilution from issuance of common stock under our stock-based compensation programs. This share repurchase program will expire on October 30, 2025. During fiscal 2023, we repurchased and retired 32,020 shares of common stock for $1.2 million and as of December 30, 2023 $73.8 million remained available for future repurchases. Equity Incentive Plan We currently grant equity-based awards under our Equity Incentive Plan, as amended (the “2012 Plan”) which was approved by our stockholders. As amended, the 2012 Plan has authorized for issuance a total of 27.4 million shares, 5.0 million of which were available for grant as of December 30, 2023. Restricted stock units (“RSUs”) granted under the 2012 Plan generally vest over three years in annual tranches, though we have granted, and will continue to grant, such awards that vest over a shorter term for employee retention purposes. RSUs, including Performance Restricted Stock Units (“PRSUs”) are converted into shares of our common stock upon vesting on a one-for-one basis. The vesting of RSUs is subject to the employee's continuing service. RSU activity was as follows: Number of Weighted Restricted stock units at December 31, 2022 2,227,081 $ 35.28 Granted 1,417,931 33.85 Vested (941,494) 33.32 Canceled (537,789) 32.66 Restricted stock units at December 30, 2023 2,165,729 35.85 The PRSUs granted in fiscal 2023, 2022 and 2021 listed below vest based on us achieving certain market performance criteria. The performance criteria are based on a metric called Total Shareholder Return (“TSR”) for the performance period of three years, relative to the TSR of the companies identified as being part of the S&P Semiconductor Select Industry Index (FormFactor peer companies) as of a specific date. Of the 258,000 PRSUs granted in fiscal 2020, none of the 191,400 outstanding PRSU awards vested in 2023, at the end of the requisite service period, as the TSR performance was not met. PRSU grant activity was as follows: Fiscal Year Ended December 30, 2023 December 31, 2022 December 25, 2021 Grant Date August 7, 2023 August 1, 2022 August 2, 2021 Performance period July 1, 2023 - June 30, 2026 July 1, 2022 - June 30, 2025 July 1, 2021 - June 30, 2024 Number of shares 172,680 204,903 197,128 TSR as-of date August 7, 2023 August 1, 2022 August 2, 2021 Stock-based compensation $8.6 million $8.6 million $8.6 million Employee Stock Purchase Plan Our 2012 Employee Stock Purchase Plan (the “ESPP”), as amended, allows for the issuance of a total of 12,137,559 shares. The offering periods under the ESPP are 12 months commencing on February 1 of each calendar year and ending on January 31 of the subsequent calendar year, and a six-month fixed offering period commencing on August 1 of each calendar year and ending on January 31 of the subsequent calendar year. The 12-month offering period consists of two six-month purchase periods and the six-month offering period consists of one six-month purchase period. The price of the common stock purchased is 85% of the lesser of the fair market value of the common stock on the first day of the applicable offering period or the last day of each purchase period. We have treated the 2012 ESPP as a compensatory plan. During fiscal 2023, employees purchased 363,190 shares under this program at a weighted average exercise price of $24.29 per share, which represented a weighted average discount of $7.65 per share from the fair value of the stock purchased. As of December 30, 2023, 3,613,021 shares remained available for issuance. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock-Based Compensation Expense Certain information regarding our stock-based compensation was as follows (in thousands, except per share amounts): Fiscal Year Ended December 30, 2023 December 31, 2022 December 25, 2021 Weighted average grant date per share fair value of RSUs granted $ 33.85 $ 34.83 $ 36.12 Total intrinsic value of stock options exercised — — 3,179 Fair value of RSUs vested 32,820 42,324 54,948 Pre-tax stock-based compensation expense by financial statement line and related tax benefit in the Consolidated Statements of Income are as follows (in thousands): Fiscal Year Ended December 30, 2023 December 31, 2022 December 25, 2021 Stock-based compensation expense included in: Cost of revenues $ 6,854 $ 3,807 $ 5,200 Research and development 10,652 8,217 7,583 Selling, general and administrative 21,110 19,313 16,601 Total stock-based compensation $ 38,616 $ 31,337 $ 29,384 Stock-based compensation tax benefit (expense) $ (1,424) $ 2,772 $ 6,118 Unrecognized Stock-Based Compensation Expense Unrecognized stock-based compensation expense at December 30, 2023 consisted of the following (in thousands): Unrecognized Expense Weighted Average Recognition Period (Years) Restricted stock units $ 48,040 2.0 Performance restricted stock units 10,902 2.0 Employee stock purchase plan 375 0.1 Total unrecognized stock-based compensation expense $ 59,317 2.0 Valuation Assumptions The following assumptions were used in estimating the fair value of PRSUs: Fiscal Year Ended December 30, 2023 December 31, 2022 December 25, 2021 PRSUs: Dividend yield — % — % — % Expected volatility 50.7 % 53.0 % 52.5 % Risk-free interest rate 4.4 % 2.8 % 0.3 % Expected life (in years) 2.9 2.9 2.9 The following assumptions were used in estimating the fair value of shares under the Employee Stock Purchase Plan: Fiscal Year Ended December 30, 2023 December 31, 2022 December 25, 2021 Employee Stock Purchase Plan: Dividend yield — % — % — % Expected volatility 40.6% - 60.2% 42.6% - 60.8% 33.6% - 74.4% Risk-free interest rate 0.8% - 5.5% 0.1% - 3.0% 0.1% - 1.5% Expected life (in years) 0.5 - 1.0 0.5 - 1.0 0.5 - 1.0 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Components of Income Before Income Taxes The components of income before income taxes were as follows (in thousands): Fiscal Year Ended December 30, 2023 December 31, 2022 December 25, 2021 United States $ (10,681) $ 30,047 $ 74,298 Foreign 99,948 27,823 24,202 $ 89,267 $ 57,870 $ 98,500 Provision for Income Taxes The components of the provision for income taxes are as follows (in thousands): Fiscal Year Ended December 30, 2023 December 31, 2022 December 25, 2021 Current provision: Federal $ 8,970 $ 4,330 $ 2,334 State 835 520 712 Foreign 9,175 8,625 7,661 18,980 13,475 10,707 Deferred provision (benefit): Federal (10,810) (5,886) 4,651 State (330) 118 522 Foreign (960) (575) (1,304) (12,100) (6,343) 3,869 Total provision for income taxes $ 6,880 $ 7,132 $ 14,576 Tax Rate Reconciliation The following is a reconciliation of the difference between income taxes computed by applying the federal statutory rate of 21% and the provision from income taxes (in thousands): Fiscal Year Ended December 30, 2023 December 31, 2022 December 25, 2021 U.S. statutory federal tax rate $ 18,746 $ 12,153 $ 20,685 State taxes and credits, net of federal benefit (87) 16 811 Stock-based compensation 1,424 (2,772) (6,118) Tax credits (13,368) (8,264) (7,153) Foreign taxes at rates different than the U.S. 9,046 2,404 2,286 Other permanent differences 1,010 1,964 2,043 Foreign gain exclusion (1) (21,567) — — Global intangible low-taxed income 7,885 7 — Foreign derived intangible income (2,986) (5,160) (2,486) Change in valuation allowance 2,569 2,597 2,231 Tax contingencies, net of reversals 4,259 3,124 2,812 Other (51) 1,063 (535) Total $ 6,880 $ 7,132 $ 14,576 (1) The rate reconciliation includes an exclusion of a portion of the gain on the sale of the FRT business under German tax law. Deferred Tax Assets and Liabilities Deferred tax assets and liabilities are recognized for the future tax consequences of differences between the carrying amounts of assets and liabilities and their respective tax basis using enacted tax rates in effect for the year in which the differences are expected to be reversed. Significant deferred tax assets and liabilities consisted of the following (in thousands): As of December 30, 2023 December 31, 2022 Tax credits $ 29,074 $ 33,025 Inventory reserve 14,626 14,269 Other reserves and accruals 9,580 6,527 Non-statutory stock options 2,771 3,180 Lease liability 6,175 6,024 Research and development expenditures capitalization 51,698 36,821 Net operating loss carryforwards 17,484 18,173 Gross deferred tax assets 131,408 118,019 Valuation allowance (45,864) (43,295) Total deferred tax assets 85,544 74,724 Right-of-use assets (5,445) (5,219) Acquired intangibles and fixed assets (863) (4,342) Unrealized investment gains (103) (103) Tax on undistributed earnings (169) (146) Total deferred tax liabilities (6,580) (9,810) Net deferred tax assets $ 78,964 $ 64,914 We are required to evaluate the realizability of our deferred tax assets in both our U.S. and non-U.S. jurisdictions on an ongoing basis to determine whether there is a need for a valuation allowance with respect to such deferred tax assets. As of December 30, 2023, we maintained a valuation allowance of $45.9 million, primarily related to California deferred tax assets and foreign tax credit carryovers, due to uncertainty about the future realization of these assets. We believe that future reversals of taxable temporary differences, and our forecast of continued earnings in both our U.S. and non-U.S. jurisdictions, support our decision to not record a valuation allowance on other deferred tax assets. Tax Credits and Carryforwards Tax credits and carryforwards available to us at December 30, 2023 consisted of the following (in thousands): Amount Latest Expiration Date Federal research and development tax credit $ 19,672 2040-2042 Foreign tax credit carryforwards 948 2024-2027 California research credits 57,077 Indefinite State net operating loss carryforwards 241,241 2026-Indefinite Singapore net operating loss carryforwards 4,279 Indefinite Undistributed Earnings As of December 30, 2023, unremitted earnings of foreign subsidiaries was estimated at $39.3 million. We intend to permanently invest $12.0 million of undistributed earnings indefinitely outside of the U.S. To the extent we repatriate the remaining $27.3 million of undistributed foreign earnings to the U.S., we established a deferred tax liability of $0.2 million for foreign withholding taxes. Our estimates are provisional and subject to change because of the complexity and variety of assumptions necessary to compute the tax. Unrecognized Tax Benefits We recognize the benefits of tax return positions if we determine that the positions are “more-likely-than-not” to be sustained by the taxing authority. Interest and penalties accrued on unrecognized tax benefits are recorded as tax expense in the period incurred. The following table reflects changes in the unrecognized tax benefits (in thousands): Fiscal Year Ended December 30, 2023 December 31, 2022 December 25, 2021 Unrecognized tax benefit, beginning balance $ 40,098 $ 35,745 $ 32,497 Additions based on tax positions related to the current year 4,726 3,868 3,201 Additions based on tax positions from prior years 858 795 124 Reductions for tax positions of prior years — — — Reductions due to lapse of the applicable statute of limitations (108) (310) (77) Unrecognized tax benefit, ending balance $ 45,574 $ 40,098 $ 35,745 Interest and penalties recognized as a component of provision for income taxes $ 34 $ 30 $ 40 Interest and penalties accrued at period end 63 85 188 Of the unrecognized tax benefits at December 30, 2023, $24.0 million would impact the effective tax rate if recognized. The amount of income taxes we pay is subject to ongoing audits by federal, state and foreign tax authorities which might result in proposed assessments. Our estimate for the potential outcome for any uncertain tax issue is judgmental in nature. However, we believe we have adequately provided for any reasonably foreseeable outcome related to those matters. Our future results may include favorable or unfavorable adjustments to our estimated tax liabilities in the period the assessments are made or resolved or when statutes of limitation on potential assessments expire. As of December 30, 2023, changes to our uncertain tax positions in the next 12 months that are reasonably possible are not expected to have a significant impact on our financial position or results of operations. At December 30, 2023, our tax years 2020 through 2023, 2019 through 2023 and 2018 through 2023 remain open for examination in the federal, state and foreign jurisdictions, respectively. However, to the extent allowed by law, the taxing authorities may have the right to examine prior periods where net operating losses and credits were generated and carried forward, and make adjustments up to the net operating loss and credit carryforward amounts. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 30, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans We have an employee savings plan that qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. The plan is designed to provide employees with an accumulation of funds for retirement on a tax-deferred basis and provide for annual discretionary employer contributions. The total charge to net income under the 401(k) plan for fiscal 2023, 2022 and 2021 aggregated to $2.3 million, $2.7 million and $2.7 million, respectively. |
Segments and Geographic Informa
Segments and Geographic Information | 12 Months Ended |
Dec. 30, 2023 | |
Segment Reporting [Abstract] | |
Segments and Geographic Information | Segments and Geographic Information We operate in two reportable segments consisting of the Probe Cards Segment and the Systems Segment. Our 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. The following table summarizes the operating results by reportable segment (dollars in thousands): Fiscal 2023 Probe Cards Systems Corporate and Other Total Revenues $ 497,903 $ 165,199 $ — $ 663,102 Gross profit 185,392 84,735 (11,547) 258,580 Gross margin 37.2 % 51.3 % 39.0 % Fiscal 2022 Probe Cards Systems Corporate and Other Total Revenues $ 591,422 $ 156,515 $ — $ 747,937 Gross profit 235,562 80,937 (20,490) 296,009 Gross margin 39.8 % 51.7 % 39.6 % Fiscal 2021 Probe Cards Systems Corporate and Other Total Revenues $ 633,281 $ 136,393 $ — $ 769,674 Gross profit 279,873 65,834 (22,940) 322,767 Gross margin 44.2 % 48.3 % 41.9 % 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 stock-based compensation expense, intangible assets, acquisition-related costs, including charges related to inventory and fixed assets stepped up to fair value, restructuring charges, and other costs, which are not used in evaluating the results of, or in allocating resources to, our reportable segments. Acquisition-related costs include transaction costs and any costs directly related to the acquisition and integration of acquired businesses. The following table summarizes revenue, by geographic region, as a percentage of total revenues based upon ship-to location: Fiscal Year Ended December 30, 2023 December 31, 2022 December 25, 2021 United States 25.9 % 17.1 % 15.9 % Taiwan 22.3 22.7 24.2 South Korea 17.8 14.9 16.0 China 13.8 21.5 21.2 Europe 5.9 5.2 5.7 Japan 5.5 5.1 4.7 Malaysia 4.0 6.7 6.4 Singapore 2.8 5.3 4.7 Rest of World 2.0 1.5 1.2 Total Revenues 100.0 % 100.0 % 100.0 % The following table summarizes revenue by market (in thousands): Fiscal Year Ended December 30, 2023 December 31, 2022 December 25, 2021 Foundry & Logic $ 363,539 $ 409,196 $ 435,812 DRAM 113,779 133,446 156,049 Flash 20,585 48,780 41,420 Systems 165,199 156,515 136,393 Total revenues $ 663,102 $ 747,937 $ 769,674 The following table summarizes revenue by timing of revenue recognition (in thousands): Fiscal Year Ended December 30, 2023 December 31, 2022 December 25, 2021 Probe Cards Systems Total Probe Cards Systems Total Probe Cards Systems Total Products transferred at a point in time $ 494,624 $ 155,145 $ 649,769 $ 587,738 $ 144,456 $ 732,194 $ 630,038 $ 124,788 $ 754,826 Services transferred over time 3,279 10,054 13,333 3,684 12,059 15,743 3,243 11,605 14,848 Total $ 497,903 $ 165,199 $ 663,102 $ 591,422 $ 156,515 $ 747,937 $ 633,281 $ 136,393 $ 769,674 Long-lived assets, comprised of Operating lease, Right-of-use assets, Property, plant and equipment, net, Goodwill and Intangibles, net, reported based on the location of the asset was as follows (in thousands): December 30, 2023 December 31, 2022 December 25, 2021 United States $ 414,607 $ 406,529 $ 372,338 Europe 23,204 42,640 47,700 Asia-Pacific 11,135 10,236 10,368 Total $ 448,946 $ 459,405 $ 430,406 |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Dec. 30, 2023 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements ASU 2023-09 In December 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2023-09, “ Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ” The ASU includes requirements that an entity disclose specific categories in the rate reconciliation and provide additional information for reconciling items that are greater than five percent of the amount computed by multiplying pretax income by the applicable statutory income tax rate. The standard also requires that entities disclose income before income taxes and provision for income taxes disaggregated between domestic and foreign. This ASU is effective for annual periods beginning after December 15, 2024, with early adoption permitted. We have not yet determined the impact of this standard on our financial statements. ASU 2023-07 In November 2023, the FASB issued ASU 2023-07, “ Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures .” The ASU includes requirements that an entity disclose the title of the CODM and on an interim and annual basis, significant segment expenses and the composition of other segment items for each segment's reported profit. The standard also permits disclosure of additional measures of segment profit. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, on a retrospective basis, with early adoption permitted. We have not yet determined the impact of this standard on our financial statements. ASU 2020-04 In March 2020, the FASB issued ASU 2020-04, “Reference 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 GAAP 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 December 2022, the FASB issued ASU 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848,” extending the relief offered in Topic 848 from December 31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply the optional expedients in Topic 848. In May 2023, the Company entered into a rate replacement amendment to its credit facility loan agreement to replace LIBOR with the Secured Overnight Financing Rate (“SOFR”) and concurrently signed an amendment to modify the floating rate option on its interest rate swap to match that of the debt. The Company applied practical expedients provided in Topic 848 allowing the modified instrument to be accounted for and presented in the same manner as the instrument existing before the modification. These modifications did not have a significant impact on our financial statements. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On February 7, 2024, the Company announced entry into a definitive agreement to sell its China operations to Grand Junction Semiconductor Pte. Ltd. for $25.0 million in cash, subject to customary purchase price adjustments, and establish an exclusive distribution and partnership agreement to continue sales and support of our products to the region. The following subsidiaries are included as part of the divestiture: Microprobe HongKong Limited, FormFactor Technology (Suzhou) Co. Ltd., Cascade Microtech Singapore Pte, Ltd, and FormFactor International (Shanghai) Trading Co., Ltd. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Pay vs Performance Disclosure | |||
Net income | $ 82,387 | $ 50,738 | $ 83,924 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 12 Months Ended |
Dec. 30, 2023 shares | Dec. 30, 2023 shares | |
Trading Arrangements, by Individual | ||
Rule 10b5-1 Arrangement Adopted | false | |
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Mike Slessor [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | Dr. Mike Slessor, the Company’s Chief Executive Officer, adopted a Rule 10b5-1 trading arrangement on November 20, 2023. Under this arrangement, a total of 84,002 shares of our common stock may be sold, subject to certain conditions, after March 1, 2024 and before the arrangement expires on November 5, 2025. The above arrangement is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) of the Exchange Act. | |
Name | Mike Slessor | |
Title | Chief Executive Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | November 20, 2023 | |
Arrangement Duration | 716 days | |
Aggregate Available | 84,002 | 84,002 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 30, 2023 | |
Accounting Policies [Abstract] | |
Fiscal Year | Fiscal Year |
Basis of Consolidation and Foreign Currency Translation | Basis of Consolidation and Foreign Currency Translation |
Foreign Currency Translation | The functional currencies of certain of our foreign subsidiaries are the local currencies and, accordingly, all assets and liabilities of these foreign operations are translated to U.S. Dollars at current period-end exchange rates, and revenues and expenses are translated to U.S. Dollars using average exchange rates in effect during the period. The gains and losses from the foreign currency translation of these subsidiaries' financial statements are included as a separate component of stockholders' equity on our Consolidated Balance Sheets under Accumulated other comprehensive loss. Certain other of our foreign subsidiaries use the U.S. Dollar as their functional currency. Accordingly, monetary assets and liabilities in non-functional currencies of these subsidiaries are remeasured using exchange rates in effect at the end of the period. Revenues and costs in local currency are remeasured using average exchange rates for the period, except for costs related to those balance sheet items that are remeasured using historical exchange rates. The resulting remeasurement gains and losses are included in the Consolidated Statements of Income as a component of Other income (expense), net as incurred. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Estimates may change as new information is obtained. We believe that the estimates, assumptions and judgments involved in revenue recognition, fair value of marketable securities, fair value of derivative financial instruments used to hedge both foreign currency and interest rate exposures, allowance for credit losses, reserves for product warranty, valuation of obsolete and slow moving inventory, assets acquired and liabilities assumed in business combinations, legal contingencies, valuation of goodwill, the assessment of recoverability of long-lived assets, valuation and recognition of stock-based compensation, loss contingencies, provision for income taxes and valuation of deferred tax assets have the greatest potential impact on our consolidated financial statements. Actual results could differ from those estimates. |
Business Acquisitions | Business Acquisitions Our consolidated financial statements include the operations of acquired businesses after the completion of their respective acquisitions. We account for acquired businesses using the acquisition method of accounting, which requires, among other things, that assets acquired and liabilities assumed be recognized at their estimated fair values as of the acquisition date, and that the fair value of acquired intangibles be recorded on the balance sheet. Transaction costs are expensed as incurred. Any excess of the purchase price over the assigned fair values of the net assets acquired is recorded as goodwill. |
Cash and Cash Equivalents | Cash and Cash Equivalents and Marketable Securities |
Marketable Securities | Marketable securities consist primarily of highly liquid investments with maturities of greater than 90 days when purchased. We classify our available-for-sale marketable securities as current assets because they represent investments of cash available for current operations. As a result, the Company recorded all its marketable securities in short-term investments regardless of the contractual maturity date of the securities. Furthermore, we report them at fair value with the related unrealized gains and losses included in Accumulated other comprehensive loss in our Consolidated Balance Sheets. Any unrealized losses which are considered to be other-than-temporary are recorded in Other income (expense), net, in the Consolidated Statements of Income. Realized gains and losses on the sale of marketable securities are determined using the specific-identification method and recorded in Other income (expense), net, in the Consolidated Statements of Income. All of our available-for-sale investments are subject to a periodic impairment review. If an available-for-sale debt security’s fair value is less than its amortized cost basis, then we evaluate whether the decline is the result of a credit loss, in which case an impairment is recorded through an allowance for credit losses. Unrealized gains and losses not attributable to credit losses are included, net of tax, in Accumulated other comprehensive loss in our Consolidated Balance Sheets. |
Foreign Exchange Management | Foreign Exchange Management We transact business in various foreign currencies. We enter into forward foreign exchange contracts in an effort to mitigate the risks associated with currency fluctuations on certain foreign currency balance sheet exposures and certain operational costs denominated in local currency impacting our statement of income. 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 Consolidated Balance Sheets with changes in fair value recorded within Other income (expense), net in our Consolidated Statements 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 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 Consolidated Statements of Income as the impact of the hedge transaction. We do not use derivative financial instruments for trading or speculative purposes. |
Accounts Receivable and Allowance for Credit Losses | Accounts Receivable and Allowance for Credit Losses The majority of our accounts receivable are derived from sales to large multinational semiconductor manufacturers throughout the world, are recorded at their invoiced amount, and do not bear interest. In order to monitor potential credit losses, we perform ongoing credit evaluations of our customers' financial condition. An allowance for credit losses is maintained based upon our assessment of the expected collectability of all accounts receivable. The allowance for credit losses is reviewed and assessed for adequacy on a quarterly basis. We take into consideration (1) any circumstances of which we are aware of a customer's inability to meet its financial obligations and (2) our judgments as to prevailing economic conditions in the industry and their impact on our customers. If circumstances change, and the financial condition of our customers is adversely affected and they are unable to meet their financial obligations, we may need to take additional allowances, which would result in an increase in our operating expense. |
Inventories | Inventories We state our inventories at the lower of cost (principally standard cost which approximates actual cost on a first in, first out basis) or net realizable value. We regularly assess the value of our inventory and will periodically write down its value for estimated excess inventory and product obsolescence based upon an analysis of existing inventory quantities compared to estimated future consumption. Future consumption is estimated based upon assumptions about how past consumption, recent purchases, backlog and other factors may indicate future consumption. On a quarterly basis, we review existing inventory quantities in comparison to our past consumption, recent purchases, backlog and other factors to determine what inventory quantities, if any, may not be sellable. Based on this analysis, we record an adjustment to the cost basis of inventory when evidence exists that the net realizable value of inventory is lower than its cost, which occurs when we have excess and/or obsolete inventory. Once the value is adjusted, the original cost of our inventory, less the related inventory write-down, represents the new cost basis. Reversal of these write downs is recognized only when the related inventory has been scrapped or sold. Shipping and handling costs are classified as a component of Cost of revenues in the Consolidated Statements of Income. |
Restricted Cash | Restricted Cash |
Property, Plant, and Equipment | Property, Plant, and Equipment Property, plant and equipment is stated at cost less accumulated depreciation and amortization. Depreciation is recorded on a straight-line method. Machinery and equipment, computer equipment and software, and furniture and fixtures are depreciated over 3 to 5 years. Leasehold improvements are amortized over 7 years. Building and building improvements are depreciated over 30 years. Construction-in-progress assets are not depreciated until the assets are placed in service. Upon sale or retirement of assets, the cost and related accumulated depreciation or amortization are removed from the Consolidated Balance Sheets and the resulting gain or loss, if any, is reflected in Operating income in our Consolidated Statements of Income. |
Leases | Leases The Company determines if an arrangement is a lease at its inception. Right-of-use (“ROU”) assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. We use our estimated incremental borrowing rate in determining the present value of lease payments considering the term of the lease, which is derived from information available at the lease commencement date. The lease term includes renewal options when it is reasonably certain that the option will be exercised and excludes termination options. To the extent that the Company’s agreements have variable lease payments, the Company includes variable lease payments that depend on an index or a rate and excludes those that depend on facts or circumstances occurring after the commencement date, other than the passage of time. Lease expense for these leases is recognized on a straight-line basis over the lease term. We have elected not to recognize ROU assets and lease liabilities that arise from short-term leases for any class of underlying asset. Operating leases are included in Operating lease, right-of-use-assets, Operating lease liabilities, and Long-term operating lease liabilities in our Consolidated Balance Sheets. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the fair value of identifiable assets acquired and liabilities assumed. Goodwill is not amortized, rather assessed, at least annually, for impairment at a reporting unit level. Impairment of goodwill exists when the carrying amount of a reporting unit exceeds its fair value. A goodwill impairment loss is recognized for the amount that the carrying amount of the reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. If the fair value of a reporting unit exceeds the carrying amount, goodwill of the reporting unit is not considered impaired. We evaluate impairment by first assessing qualitative factors to determine whether it is necessary to perform a quantitative impairment test. If we determine, as a result of the qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the quantitative impairment test is required. Otherwise, no further testing is required. We perform our annual goodwill impairment test in the fourth quarter of each year by assessing qualitative factors, including, but not limited to, an assessment of our market capitalization, which was significantly higher than our book value. Based on these tests, we determined that the quantitative impairment test was not required and no impairment charges were recorded in fiscal 2023, 2022 or 2021. |
Intangible Assets | Intangible Assets Intangible assets consist of acquisition related intangible assets and intellectual property. The intangible assets are being amortized over periods of 1 to 10 years, which reflect the pattern in which economic benefits of the assets are expected to be realized. We perform a review of intangible assets when facts and circumstances indicate that the useful life is shorter than originally estimated or that the carrying amount of assets may not be recoverable. Such facts and circumstances include significant adverse changes in the business climate or legal factors; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the intangible assets; and current expectation that the intangible assets will more likely than not be sold or disposed of before the end of their estimated useful lives. We assess the recoverability of identified intangible assets by comparing the projected undiscounted net cash flows associated with the related asset or group of assets over their remaining lives against their respective carrying amounts. Impairments, if any, are based on the excess of the carrying amount over the fair value of those assets. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets We test long-lived assets or asset groups, such as property, plant and equipment and intangible assets, for recoverability when events or changes in circumstances indicate that their carrying amounts may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed of before the end of its estimated useful life. |
Concentration of Credit Risk and Other Risk and Uncertainties | Concentration of Credit Risk and Other Risks and Uncertainties |
Government Assistance | Government Assistance In January 2023, we received $18.0 million in cash from a California Competes Grant (the “Grant”) awarded from the California Governor’s Office of Business and Economic Development. The Grant requires us to create and maintain full-time jobs and make significant infrastructure investments within California over a 5-year term. If we do not meet the requirements of the Grant, we will be required to repay all or a portion of the Grant. The Grant is included in our Consolidated Balance Sheets within Deferred grant and we will recognize the Grant over time when earned as an offset to Cost of revenues and Operating expenses within our Consolidated Statements of Income. We have presented the proceeds from the Grant as cash provided by operating activities within our Consolidated Statements of Cash Flows as the Grant is to offset operations. No amounts were recognized as an offset to expenses in fiscal 2023 and the full grant remains deferred. |
Revenue Recognition | Revenue Recognition Revenue is recognized upon transferring control of products and services, and the amounts recognized reflect the consideration we expect to be entitled to receive in exchange for these products and services. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities. An arrangement may include some or all of the following products and services: probe cards, systems, accessories, engineering services, installation services, service contracts and extended warranty contracts. We sell our products and services direct to customers and to partners in two distribution channels: global direct sales force and through a combination of manufacturers’ representatives and distributors. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. In contracts with multiple performance obligations, we identify each performance obligation and evaluate whether the performance obligation is distinct within the context of the contract at contract inception. Performance obligations that are not distinct at contract inception are combined and accounted for as one unit of account. Generally, the performance obligations in a contract are considered distinct within the context of the contract and are accounted for as separate units of account. Our products may be customized to our customers’ specifications; however, control of our product is typically transferred to the customer at the point in time the product is either shipped or delivered, depending on the terms of the arrangement, as the criteria for over time recognition is not met. In limited circumstances, substantive acceptance by the customer exists which results in the deferral of revenue until acceptance is formally received from the customer. Judgment may be required in determining if the acceptance clause is substantive. In certain instances control of products is transferred to the customer over time based on performance and in those instances we utilize an appropriate input or output measure to determine to what extent control has transferred to the customer. Judgment may be required in determining an appropriate measure of performance. Installation services are routinely provided to customers purchasing our systems. Installation services are a distinct performance obligation apart from the systems and are recognized in the period they are performed. Service contracts, which include repair and maintenance service contracts, and extended warranty contracts are also distinct performance obligations and are recognized over the contractual service period, which ranges from one to three years. For these service contracts recognized over time, we use the input measure of days elapsed to measure progress. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. In determining the transaction price, we evaluate whether the price is subject to refund or adjustment to determine the net consideration to which we expect to be entitled. We generally do not grant return privileges, except for defective products during the warranty period. Sales incentives and other programs that we may make available to our customers are considered to be a form of variable consideration, which is estimated in determining the contract’s transaction price to be allocated to the performance obligations. For contracts with multiple performance obligations, we allocate the contract’s transaction price to each performance obligation based on its relative stand-alone selling price. The stand-alone selling prices are determined based on observable prices, which are the prices at which we separately sell these products. For items which do not have observable prices, we use our best estimate of the stand-alone selling prices. Transaction price allocated to the remaining performance obligations: On December 30, 2023, we had $12.4 million of remaining performance obligations, which were comprised of deferred service contracts, extended warranty contracts, and contracts with over time revenue recognition that are not yet delivered. We expect to recognize approximately 86.7% of our remaining performance obligations as revenue in fiscal 2024, approximately 9.1% in fiscal 2025, and approximately 4.2% in fiscal 2026 and thereafter. The foregoing excludes the value of remaining performance obligations that 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 December 30, 2023 and December 31, 2022 were $3.8 million and $1.9 million, respectively, and are reported on the 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 Consolidated Balance Sheets on a contract-by-contract basis at the end of each reporting period as a component of Deferred revenue and Other liabilities. Contract liabilities totaled $18.0 million and $30.9 million at December 30, 2023 and December 31, 2022, respectively. During fiscal 2023, we recognized $27.5 million of revenue that was included in contract liabilities as of December 31, 2022. 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 17, Segments and Geographic Information |
Warranty Obligations | Warranty Obligations 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 incurred in correcting a product failure. We continuously monitor product returns for warranty and maintain a reserve for the related expenses based upon our historical experience and any specifically identified field 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. Warranty costs are reflected in the Consolidated Statement of Income as a Cost of revenues. |
Research and Development | Research and Development Research and development expenses include expenses related to product development, engineering and material costs. All research and development costs are expensed as incurred. |
Income Taxes | Income Taxes We utilize the asset and liability method of accounting for income taxes, under which deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences reverse and for operating losses and tax credit carryforwards. We estimate our provision for income taxes and amounts ultimately payable or recoverable in numerous tax jurisdictions around the world. Estimates involve interpretations of regulations and are inherently complex. Resolution of income tax treatments in individual jurisdictions may not be known for many years after completion of any fiscal year. We are required to evaluate the realizability of our deferred tax assets on an ongoing basis to determine whether there is a need for a valuation allowance with respect to such deferred tax assets. A valuation allowance is recorded when it is more likely than not that some or all of the deferred tax assets will not be realized. In evaluating the ability to recover deferred tax assets, we consider all available positive and negative evidence giving greater weight to our recent cumulative income, our historical ability to utilize net operating losses in recent years, and our forecast of future taxable income, including the reversal of temporary differences and the implementation of feasible and prudent tax planning strategies. We recognize and measure uncertain tax positions taken or expected to be taken in a tax return if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized are then measured based on the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement. We report a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. We adjust these reserves in light of changing facts and circumstances, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will impact the provision for income taxes in the period in which such determination is made. The provision for income taxes includes the impact of reserve provisions and changes to reserves, as well as the related net interest. We recognize interest and penalties related to unrecognized tax benefits within the income tax provision. Accrued interest and penalties are included within the related tax liability in the Consolidated Balance Sheets. We file annual income tax returns in multiple taxing jurisdictions around the world. A number of years may elapse before an uncertain tax position is audited and finally resolved. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, we believe that our related liability reflects the most likely outcome. We adjust the liability, as well as the related interest, in light of changing facts and circumstances. Settlement of any particular position could require the use of cash. |
Stock-Based Compensation | Stock-Based Compensation We recognize compensation expense for all stock-based awards based on the grant-date estimated fair values. The value of the portion of the award that is ultimately expected to vest is recognized as expense ratably over the requisite service periods in our Consolidated Statements of Income. The fair value of restricted stock units (“RSUs”) is measured based on the closing market price of our common stock on the date of grant. The fair value of Performance RSUs (“PRSU”) is based on certain market performance criteria and is measured using a Monte Carlo simulation pricing model. See Note 13, Stockholders' Equity , and Note 14, Stock-Based Compensation , for additional information. |
Net Income Per Share | Net Income Per Share |
Fair Value Measurement | 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 fiscal 2023, 2022 or 2021. The carrying values of Cash, Accounts receivable, net, Restricted cash, Prepaid expenses and other current assets, Accounts payable, and Accrued liabilities approximate fair value due to their short maturities. No changes were made to our valuation techniques during fiscal 2023. 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 of our investments have a sufficient level of trading volume to demonstrate that the fair value is appropriate. |
New Accounting Pronouncements | ASU 2020-04 In March 2020, the FASB issued ASU 2020-04, “Reference 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 GAAP 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 December 2022, the FASB issued ASU 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848,” extending the relief offered in Topic 848 from December 31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply the optional expedients in Topic 848. In May 2023, the Company entered into a rate replacement amendment to its credit facility loan agreement to replace LIBOR with the Secured Overnight Financing Rate (“SOFR”) and concurrently signed an amendment to modify the floating rate option on its interest rate swap to match that of the debt. The Company applied practical expedients provided in Topic 848 allowing the modified instrument to be accounted for and presented in the same manner as the instrument existing before the modification. These modifications did not have a significant impact on our financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Allowance for Doubtful Accounts | Activity related to our allowance for credit losses was as follows (in thousands): Fiscal Year Ended December 30, 2023 December 31, 2022 December 25, 2021 Balance at beginning of year $ 168 $ 195 $ 248 Charges (reversals) to costs and expenses 333 (27) (53) Balance at end of year $ 501 $ 168 $ 195 |
Schedules of Concentration of Risk, by Customer | The following customers represented 10% or more of our revenues: Fiscal Year Ended December 30, 2023 December 31, 2022 December 25, 2021 Intel Corporation 17.1 % 19.0 % 20.4 % Samsung Electronics Co., LTD. * * 11.4 % * Less than 10% of revenues. |
Schedule of Product Warranty Liability Reconciliation | A reconciliation of the changes in our warranty liability is as follows (in thousands): Fiscal Year Ended December 30, 2023 December 31, 2022 December 25, 2021 Balance at beginning of year $ 4,199 $ 2,805 $ 3,918 Accruals 7,771 7,746 5,759 Settlements (8,687) (6,352) (6,872) Reduction - FRT divestiture (106) — — Balance at end of year $ 3,177 $ 4,199 $ 2,805 |
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): Fiscal Year Ended December 30, 2023 December 31, 2022 December 25, 2021 Weighted-average shares used in computing basic net income per share 77,370 77,578 77,787 Add potentially dilutive securities 789 623 1,346 Weighted-average shares used in computing basic and diluted net income per share 78,159 78,201 79,133 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive loss (“AOCL”) includes the following items, the impact of which has been excluded from earnings and reflected as components of stockholders' equity as shown below (in thousands): December 30, 2023 December 31, 2022 Unrealized losses on available-for-sale marketable securities and other investments $ (727) $ (2,749) Translation adjustments (5,568) (5,675) Unrealized gains on derivative instruments 2,243 2,846 Accumulated other comprehensive loss $ (4,052) $ (5,578) |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Balance Sheet Components [Abstract] | |
Schedule of Marketable Securities | Marketable securities consisted of the following (in thousands): December 30, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. treasuries $ 45,772 $ 91 $ (26) $ 45,837 Commercial paper 13,319 — (2) 13,317 Corporate bonds 81,612 267 (529) 81,350 U.S. agency securities 10,086 9 (92) 10,003 $ 150,789 $ 367 $ (649) $ 150,507 December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. treasuries $ 25,498 $ — $ (479) $ 25,019 Commercial paper 24,893 — (53) 24,840 Corporate bonds 68,845 — (1,449) 67,396 Certificates of deposit 720 — (14) 706 U.S. agency securities 11,295 — (250) 11,045 $ 131,251 $ — $ (2,245) $ 129,006 |
Contractual Maturity of Marketable Securities | The contractual maturities of marketable securities were as follows (in thousands): December 30, 2023 December 31, 2022 Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 94,772 $ 94,370 $ 77,663 $ 76,902 Due after one year to five years 56,017 56,137 53,588 52,104 $ 150,789 $ 150,507 $ 131,251 $ 129,006 |
Schedule of Net Inventory | Inventories consisted of the following (in thousands): December 30, 2023 December 31, 2022 Raw materials $ 50,808 $ 55,726 Work-in-progress 39,336 46,067 Finished goods 21,541 21,364 $ 111,685 $ 123,157 |
Schedule of Property, Plant and Equipment | Property, plant and equipment, net consisted of the following (in thousands): December 30, 2023 December 31, 2022 Land $ 17,124 $ 17,136 Building and building improvements 46,526 44,932 Machinery and equipment 286,215 276,180 Computer equipment and software 46,866 45,813 Furniture and fixtures 7,490 7,540 Leasehold improvements 91,063 86,500 Sub-total 495,284 478,101 Less: Accumulated depreciation and amortization (358,021) (335,711) Net property, plant and equipment 137,263 142,390 Construction-in-progress 67,136 47,458 Total $ 204,399 $ 189,848 |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following (in thousands): December 30, 2023 December 31, 2022 Accrued compensation and benefits $ 20,073 $ 15,864 Accrued income and other taxes 8,205 12,817 Accrued employee stock purchase plan contributions withheld 4,263 4,585 Accrued warranty 3,177 4,199 Accrued restructuring charges — 1,249 Other accrued expenses 5,319 3,401 $ 41,037 $ 42,115 |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Business Combinations [Abstract] | |
Schedule of Assets Acquired and Liabilities Assumed | The fair value of assets acquired, including goodwill and intangibles, and liabilities assumed for the purchase are as follows (in thousands): Amount Accounts receivable 178 Inventories 7,041 Property, plant and equipment 479 Prepaid expenses and other assets 117 Other asset 28 Tangible assets acquired 7,843 Deferred revenue (5,513) Accounts payable and accrued liabilities (30) Total net tangible assets acquired and liabilities assumed 2,300 Intangible assets 500 Goodwill 550 Net assets acquired $ 3,350 |
Divesture (Tables)
Divesture (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Components Held-for Sale | The following table summarizes the fair value of the sale proceeds received in connection with the divestiture, which are subject to further post-closing adjustment (in thousands): November 1, 2023 Fair value of sale consideration $ 99,031 Estimated working capital adjustment 4,029 Cash transferred to the buyer at closing (2,049) Direct costs to sell (1,225) Fair value of sale consideration $ 99,786 The carrying amount of net assets associated with the FRT business was approximately $26.8 million. The major classes of assets and liabilities sold consisted of the following: November 1, 2023 ASSETS Accounts receivable, net $ 7,738 Inventories, net 6,446 Other current assets 635 Total current assets 14,819 Intangibles, net 6,897 Goodwill 10,660 Other assets 1,612 Total assets $ 33,988 LIABILITIES Current liabilities $ 4,300 Other liabilities 2,856 Total liabilities $ 7,156 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Our debt consisted of the following (in thousands): December 30, 2023 December 31, 2022 Term loan $ 14,448 $ 15,499 Less unamortized issuance costs (59) (65) Term loan less issuance costs $ 14,389 $ 15,434 |
Schedule of Maturities of Long-term Debt | Future principal and interest payments on our term loans as of December 30, 2023, based on the interest rate in effect at that date were as follows (in thousands): Payments Due In Fiscal Year 2024 2025 2026 2027 2028 2029 and thereafter Total Term loan - principal payments $ 1,080 $ 1,111 $ 1,142 $ 1,175 $ 1,208 $ 8,732 $ 14,448 Term loans - interest payments (1) 1,025 937 857 773 688 2,163 6,443 $ 2,105 $ 2,048 $ 1,999 $ 1,948 $ 1,896 $ 10,895 $ 20,891 (1) Represents our minimum interest payment commitment at 7.20% per annum, excluding the interest rate swap described above. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense were as follows (in thousands): Lease Expense December 30, 2023 December 31, 2022 December 25, 2021 Operating lease expense $ 8,453 $ 8,595 $ 8,485 Short-term lease expense 524 385 180 Variable lease expense 2,389 2,393 1,842 $ 11,366 $ 11,373 $ 10,507 |
Schedule of Future Minimum Payments | Future minimum payments under our non-cancelable operating leases were as follows as of December 30, 2023 (in thousands): Fiscal Year Amount 2024 $ 9,337 2025 9,215 2026 7,586 2027 7,154 2028 3,870 Thereafter 1,432 Total minimum lease payments 38,594 Less: interest (4,838) Present value of net minimum lease payments 33,756 Less: current portion (8,422) Total long-term operating lease liabilities $ 25,334 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs by Reportable Segment | Total restructuring charges for both the 2022 and 2021 restructuring plans included in our Consolidated Statements of Income were as follows (in thousands): Fiscal Year Ended December 30, 2023 December 31, 2022 December 25, 2021 Cost of revenues $ 357 $ 11,775 $ 3,205 Research and development 291 1,498 869 Selling, general and administrative 1,187 2,166 50 $ 1,835 $ 15,439 $ 4,124 |
Schedule of Restructuring Accrual Activity | Changes to the restructuring accrual during the years ended December 31, 2022 and December 30, 2023 were as follows (in thousands): Employee Stock-based Compensation Inventory Property and Contract Total December 25, 2021 $ 1,028 $ — $ — $ — $ 1,450 $ 2,478 Restructuring charges 7,269 — 7,629 186 502 15,586 Cash payments (7,048) — (1,112) (112) (1,719) (9,991) Adjustment to restructuring charges — — — — (147) (147) Non-cash settlement — — (6,517) (74) (86) (6,677) December 31, 2022 1,249 $ — — — — 1,249 Restructuring charges 917 295 390 — 233 1,835 Cash payments (2,166) — (89) — (233) (2,488) Non-cash settlement — (295) (301) — — (596) December 30, 2023 $ — $ — $ — $ — $ — $ — |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Foreign Currency Forward Contracts Outstanding | The following table provides information about our foreign currency forward contracts outstanding as of December 30, 2023 (in thousands): Currency Contract Position Contract Amount (Local Currency) Contract Amount (U.S. Dollars) Euro Buy 26,597 $ 29,224 Japanese Yen Sell 2,961,827 21,073 Korean Won Buy 2,334,329 1,815 Taiwan Dollar Sell 79,324 2,611 The location and amount of gains (losses) related to foreign currency derivative instruments designated as cash flow hedges on our Consolidated Statements of Income was as follows (in thousands): Amount of Gain or (Loss) Recognized in AOCL on Derivative Location of Gain or (Loss) Reclassified from AOCL into Income Amount of Gain or (Loss) Reclassified from AOCL into Income Fiscal 2023 $ 160 Cost of revenues $ 222 Research and development 75 Selling, general and administrative 80 $ 377 Fiscal 2022 $ (1,688) Cost of revenues $ (1,816) Research and development (376) Selling, general and administrative (456) $ (2,648) Fiscal 2021 $ (1,096) Cost of revenues $ 184 Research and development 3 Selling, general and administrative 64 $ 251 |
Schedule of Non-designated Derivative Gains (Losses) | The location and amount of gains related to non-designated derivative instruments in the Consolidated Statements of Income were as follows (in thousands): Derivatives Not Designated as Hedging Instruments Location of Gain Recognized Fiscal Year Ended December 30, 2023 December 31, 2022 December 25, 2021 Foreign exchange forward contracts Other income (expense), net $ 2,504 $ 2,439 $ 1,585 |
Schedule of the Impact of Cash Flow Hedges on Consolidated Financial Statements | The impact of the interest rate swaps on the Consolidated Statements of Income was as follows (in thousands): Amount of Gain Recognized in AOCL on Derivative (Effective Portion) Location of Gain Reclassified from AOCL into Income (Effective Portion) Amount of Gain or (Loss) Reclassified from AOCL into Income (Effective Portion) Fiscal 2023 $ 230 Other income (expense), net $ 615 Fiscal 2022 1,906 Other income (expense), net 106 Fiscal 2021 451 Other income (expense), net (154) |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Values Measured on Recurring Basis | December 30, 2023 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 110,980 $ — $ — $ 110,980 U.S. treasuries 4,581 — — 4,581 115,561 — — 115,561 Marketable securities: U.S. treasuries 45,837 — — 45,837 U.S. agency securities — 10,003 — 10,003 Corporate bonds — 81,350 — 81,350 Commercial paper — 13,317 — 13,317 45,837 104,670 — 150,507 Foreign exchange derivative contracts — 284 — 284 Interest rate swap derivative contracts — 1,989 — 1,989 Total assets $ 161,398 $ 106,943 $ — $ 268,341 Liabilities: Foreign exchange derivative contracts $ — $ (30) $ — $ (30) Total liabilities $ — $ (30) $ — $ (30) December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 21,279 $ — $ — $ 21,279 Commercial paper — 4,969 — 4,969 U.S. agency securities — 996 — 996 21,279 5,965 — 27,244 Marketable securities: U.S. treasuries 25,019 — — 25,019 Certificates of deposit — 706 — 706 U.S. agency securities — 11,045 — 11,045 Corporate bonds — 67,396 — 67,396 Commercial paper — 24,840 — 24,840 25,019 103,987 — 129,006 Foreign exchange derivative contracts — 664 — 664 Promissory note receivable — — 943 943 Interest rate swap derivative contracts — 2,374 — 2,374 Total assets $ 46,298 $ 112,990 $ 943 $ 160,231 Liabilities: Foreign exchange derivative contracts $ — $ (193) $ — $ (193) Total liabilities $ — $ (193) $ — $ (193) |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Goodwill by reportable segment was as follows (in thousands): Probe Cards Systems Total Goodwill, as of December 25, 2021 $ 178,424 $ 33,875 $ 212,299 Addition - Woburn acquisition — 550 550 Foreign currency translation — (1,405) (1,405) Goodwill, as of December 31, 2022 178,424 33,020 211,444 Reduction - FRT divestiture — (10,660) (10,660) Foreign currency translation — 306 306 Goodwill, as of December 30, 2023 $ 178,424 $ 22,666 $ 201,090 |
Schedule of Finite-lived Intangible Assets | Intangible assets were as follows (in thousands): December 30, 2023 December 31, 2022 Other Intangible Assets Gross Accumulated Amortization Net Gross Accumulated Amortization Net Existing developed technologies $ 159,593 $ 148,445 $ 11,148 $ 171,441 $ 151,212 $ 20,229 Trade name 7,808 7,728 80 7,972 7,759 213 Customer relationships 48,022 46,712 1,310 50,912 45,003 5,909 In-process research and development 400 — 400 400 — 400 $ 215,823 $ 202,885 $ 12,938 $ 230,725 $ 203,974 $ 26,751 |
Schedule of Amortization Expense | Amortization expense was included in our Consolidated Statements of Income as follows (in thousands): Fiscal Year Ended December 30, December 31, December 25, Cost of revenues $ 3,081 $ 3,225 $ 12,269 Selling, general and administrative 3,769 6,166 6,478 $ 6,850 $ 9,391 $ 18,747 |
Schedule of Remaining Estimated Amortization Expense | The estimated future amortization of definite-lived intangible assets, excluding in-process research and development, is as follows (in thousands): Fiscal Year Amount 2024 $ 2,561 2025 2,330 2026 1,630 2027 1,630 2028 1,630 Thereafter 2,757 Total $ 12,538 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Equity [Abstract] | |
Schedule of Restricted Stock Unit Activity | RSU activity was as follows: Number of Weighted Restricted stock units at December 31, 2022 2,227,081 $ 35.28 Granted 1,417,931 33.85 Vested (941,494) 33.32 Canceled (537,789) 32.66 Restricted stock units at December 30, 2023 2,165,729 35.85 |
Schedule of Performance Restricted Stock Unit Activity | PRSU grant activity was as follows: Fiscal Year Ended December 30, 2023 December 31, 2022 December 25, 2021 Grant Date August 7, 2023 August 1, 2022 August 2, 2021 Performance period July 1, 2023 - June 30, 2026 July 1, 2022 - June 30, 2025 July 1, 2021 - June 30, 2024 Number of shares 172,680 204,903 197,128 TSR as-of date August 7, 2023 August 1, 2022 August 2, 2021 Stock-based compensation $8.6 million $8.6 million $8.6 million |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Additional Information Regarding Stock Based Compensation | Certain information regarding our stock-based compensation was as follows (in thousands, except per share amounts): Fiscal Year Ended December 30, 2023 December 31, 2022 December 25, 2021 Weighted average grant date per share fair value of RSUs granted $ 33.85 $ 34.83 $ 36.12 Total intrinsic value of stock options exercised — — 3,179 Fair value of RSUs vested 32,820 42,324 54,948 |
Schedule of Stock-based Compensation Expense | Pre-tax stock-based compensation expense by financial statement line and related tax benefit in the Consolidated Statements of Income are as follows (in thousands): Fiscal Year Ended December 30, 2023 December 31, 2022 December 25, 2021 Stock-based compensation expense included in: Cost of revenues $ 6,854 $ 3,807 $ 5,200 Research and development 10,652 8,217 7,583 Selling, general and administrative 21,110 19,313 16,601 Total stock-based compensation $ 38,616 $ 31,337 $ 29,384 Stock-based compensation tax benefit (expense) $ (1,424) $ 2,772 $ 6,118 |
Schedule of Unrecognized Compensation Expense | Unrecognized stock-based compensation expense at December 30, 2023 consisted of the following (in thousands): Unrecognized Expense Weighted Average Recognition Period (Years) Restricted stock units $ 48,040 2.0 Performance restricted stock units 10,902 2.0 Employee stock purchase plan 375 0.1 Total unrecognized stock-based compensation expense $ 59,317 2.0 |
Schedule of Assumptions, Fair Value of PRSUs | The following assumptions were used in estimating the fair value of PRSUs: Fiscal Year Ended December 30, 2023 December 31, 2022 December 25, 2021 PRSUs: Dividend yield — % — % — % Expected volatility 50.7 % 53.0 % 52.5 % Risk-free interest rate 4.4 % 2.8 % 0.3 % Expected life (in years) 2.9 2.9 2.9 |
Schedule of Assumptions, Fair Value of Employee Purchase Rights | The following assumptions were used in estimating the fair value of shares under the Employee Stock Purchase Plan: Fiscal Year Ended December 30, 2023 December 31, 2022 December 25, 2021 Employee Stock Purchase Plan: Dividend yield — % — % — % Expected volatility 40.6% - 60.2% 42.6% - 60.8% 33.6% - 74.4% Risk-free interest rate 0.8% - 5.5% 0.1% - 3.0% 0.1% - 1.5% Expected life (in years) 0.5 - 1.0 0.5 - 1.0 0.5 - 1.0 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Before Income Taxes | The components of income before income taxes were as follows (in thousands): Fiscal Year Ended December 30, 2023 December 31, 2022 December 25, 2021 United States $ (10,681) $ 30,047 $ 74,298 Foreign 99,948 27,823 24,202 $ 89,267 $ 57,870 $ 98,500 |
Schedule of Components of Provision for Income Taxes | The components of the provision for income taxes are as follows (in thousands): Fiscal Year Ended December 30, 2023 December 31, 2022 December 25, 2021 Current provision: Federal $ 8,970 $ 4,330 $ 2,334 State 835 520 712 Foreign 9,175 8,625 7,661 18,980 13,475 10,707 Deferred provision (benefit): Federal (10,810) (5,886) 4,651 State (330) 118 522 Foreign (960) (575) (1,304) (12,100) (6,343) 3,869 Total provision for income taxes $ 6,880 $ 7,132 $ 14,576 |
Schedule of Effective Income Tax Rate Reconciliation | The following is a reconciliation of the difference between income taxes computed by applying the federal statutory rate of 21% and the provision from income taxes (in thousands): Fiscal Year Ended December 30, 2023 December 31, 2022 December 25, 2021 U.S. statutory federal tax rate $ 18,746 $ 12,153 $ 20,685 State taxes and credits, net of federal benefit (87) 16 811 Stock-based compensation 1,424 (2,772) (6,118) Tax credits (13,368) (8,264) (7,153) Foreign taxes at rates different than the U.S. 9,046 2,404 2,286 Other permanent differences 1,010 1,964 2,043 Foreign gain exclusion (1) (21,567) — — Global intangible low-taxed income 7,885 7 — Foreign derived intangible income (2,986) (5,160) (2,486) Change in valuation allowance 2,569 2,597 2,231 Tax contingencies, net of reversals 4,259 3,124 2,812 Other (51) 1,063 (535) Total $ 6,880 $ 7,132 $ 14,576 (1) |
Schedule of Deferred Tax Assets and Liabilities | Significant deferred tax assets and liabilities consisted of the following (in thousands): As of December 30, 2023 December 31, 2022 Tax credits $ 29,074 $ 33,025 Inventory reserve 14,626 14,269 Other reserves and accruals 9,580 6,527 Non-statutory stock options 2,771 3,180 Lease liability 6,175 6,024 Research and development expenditures capitalization 51,698 36,821 Net operating loss carryforwards 17,484 18,173 Gross deferred tax assets 131,408 118,019 Valuation allowance (45,864) (43,295) Total deferred tax assets 85,544 74,724 Right-of-use assets (5,445) (5,219) Acquired intangibles and fixed assets (863) (4,342) Unrealized investment gains (103) (103) Tax on undistributed earnings (169) (146) Total deferred tax liabilities (6,580) (9,810) Net deferred tax assets $ 78,964 $ 64,914 |
Summary of Tax Credit Carryforwards | Tax credits and carryforwards available to us at December 30, 2023 consisted of the following (in thousands): Amount Latest Expiration Date Federal research and development tax credit $ 19,672 2040-2042 Foreign tax credit carryforwards 948 2024-2027 California research credits 57,077 Indefinite State net operating loss carryforwards 241,241 2026-Indefinite Singapore net operating loss carryforwards 4,279 Indefinite |
Schedule of Unrecognized Tax Benefits | The following table reflects changes in the unrecognized tax benefits (in thousands): Fiscal Year Ended December 30, 2023 December 31, 2022 December 25, 2021 Unrecognized tax benefit, beginning balance $ 40,098 $ 35,745 $ 32,497 Additions based on tax positions related to the current year 4,726 3,868 3,201 Additions based on tax positions from prior years 858 795 124 Reductions for tax positions of prior years — — — Reductions due to lapse of the applicable statute of limitations (108) (310) (77) Unrecognized tax benefit, ending balance $ 45,574 $ 40,098 $ 35,745 Interest and penalties recognized as a component of provision for income taxes $ 34 $ 30 $ 40 Interest and penalties accrued at period end 63 85 188 |
Segments and Geographic Infor_2
Segments and Geographic Information (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Segment Reporting [Abstract] | |
Operating Results by Reportable Segments | The following table summarizes the operating results by reportable segment (dollars in thousands): Fiscal 2023 Probe Cards Systems Corporate and Other Total Revenues $ 497,903 $ 165,199 $ — $ 663,102 Gross profit 185,392 84,735 (11,547) 258,580 Gross margin 37.2 % 51.3 % 39.0 % Fiscal 2022 Probe Cards Systems Corporate and Other Total Revenues $ 591,422 $ 156,515 $ — $ 747,937 Gross profit 235,562 80,937 (20,490) 296,009 Gross margin 39.8 % 51.7 % 39.6 % Fiscal 2021 Probe Cards Systems Corporate and Other Total Revenues $ 633,281 $ 136,393 $ — $ 769,674 Gross profit 279,873 65,834 (22,940) 322,767 Gross margin 44.2 % 48.3 % 41.9 % |
Summary of Revenue by Geographic Region | The following table summarizes revenue, by geographic region, as a percentage of total revenues based upon ship-to location: Fiscal Year Ended December 30, 2023 December 31, 2022 December 25, 2021 United States 25.9 % 17.1 % 15.9 % Taiwan 22.3 22.7 24.2 South Korea 17.8 14.9 16.0 China 13.8 21.5 21.2 Europe 5.9 5.2 5.7 Japan 5.5 5.1 4.7 Malaysia 4.0 6.7 6.4 Singapore 2.8 5.3 4.7 Rest of World 2.0 1.5 1.2 Total Revenues 100.0 % 100.0 % 100.0 % |
Summary of Revenue by Market | The following table summarizes revenue by market (in thousands): Fiscal Year Ended December 30, 2023 December 31, 2022 December 25, 2021 Foundry & Logic $ 363,539 $ 409,196 $ 435,812 DRAM 113,779 133,446 156,049 Flash 20,585 48,780 41,420 Systems 165,199 156,515 136,393 Total revenues $ 663,102 $ 747,937 $ 769,674 |
Summary of Revenue by Timing of Recognition | The following table summarizes revenue by timing of revenue recognition (in thousands): Fiscal Year Ended December 30, 2023 December 31, 2022 December 25, 2021 Probe Cards Systems Total Probe Cards Systems Total Probe Cards Systems Total Products transferred at a point in time $ 494,624 $ 155,145 $ 649,769 $ 587,738 $ 144,456 $ 732,194 $ 630,038 $ 124,788 $ 754,826 Services transferred over time 3,279 10,054 13,333 3,684 12,059 15,743 3,243 11,605 14,848 Total $ 497,903 $ 165,199 $ 663,102 $ 591,422 $ 156,515 $ 747,937 $ 633,281 $ 136,393 $ 769,674 |
Long-lived Assets by Location | Long-lived assets, comprised of Operating lease, Right-of-use assets, Property, plant and equipment, net, Goodwill and Intangibles, net, reported based on the location of the asset was as follows (in thousands): December 30, 2023 December 31, 2022 December 25, 2021 United States $ 414,607 $ 406,529 $ 372,338 Europe 23,204 42,640 47,700 Asia-Pacific 11,135 10,236 10,368 Total $ 448,946 $ 459,405 $ 430,406 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balance at beginning of year | $ 168 | $ 195 | $ 248 |
Charges (reversals) to costs and expenses | 333 | (27) | (53) |
Balance at end of year | $ 501 | $ 168 | $ 195 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Accounting Policies [Abstract] | |||
Aggregate inventory write downs | $ 15,003 | $ 24,632 | $ 15,544 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Property, Plant, and Equipment (Details) | Dec. 30, 2023 |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment useful lives | 3 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment useful lives | 5 years |
Computer equipment and software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment useful lives | 3 years |
Computer equipment and software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment useful lives | 5 years |
Furniture and fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment useful lives | 3 years |
Furniture and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment useful lives | 5 years |
Building and building improvements | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment useful lives | 30 years |
Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment useful lives | 7 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Intangible Assets (Details) | 12 Months Ended |
Dec. 30, 2023 | |
Minimum | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average useful life (in years) | 1 year |
Maximum | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average useful life (in years) | 10 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Concentration of Credit Risk and Other Risks and Uncertainties (Details) - Customer Concentration Risk | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Intel Corporation | Revenue Benchmark | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 17.10% | 19% | 20.40% |
Samsung Electronics Co., LTD. | Revenue Benchmark | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 11.40% | ||
Major Customer 1 | Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 17.80% | 13.80% | |
Major Customer 2 | Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 11% |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Government Assistance (Details) - USD ($) $ in Thousands | 1 Months Ended | ||
Jan. 31, 2023 | Dec. 30, 2023 | Dec. 31, 2022 | |
Accounting Policies [Abstract] | |||
Deferred grant | $ 18,000 | $ 18,000 | $ 0 |
Deferred Government Grant Liability, Term | 5 years |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Revenue Recognition (Details) $ in Millions | 12 Months Ended | |
Dec. 30, 2023 USD ($) distributionChannels | Dec. 31, 2022 USD ($) | |
Disaggregation of Revenue [Line Items] | ||
Number of distribution channels | distributionChannels | 2 | |
Remaining performance obligations | $ 12.4 | |
Contract assets | 3.8 | $ 1.9 |
Contract liabilities | 18 | $ 30.9 |
Revenue recognized on contract liabilities | $ 27.5 | |
Minimum | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, performance obligation, description of timing | one | |
Maximum | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, performance obligation, description of timing | three years |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Revenue Remaining Performance Obligation (Details) | Dec. 30, 2023 |
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 | 86.70% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-12-29 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 9.10% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-12-28 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 4.20% |
Revenue, remaining performance obligation, expected timing of satisfaction, period |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Warranty Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Balance at beginning of year | $ 4,199 | $ 2,805 | $ 3,918 |
Accruals | 7,771 | 7,746 | 5,759 |
Settlements | (8,687) | (6,352) | (6,872) |
Reduction - FRT divestiture | 106 | 0 | 0 |
Balance at end of year | $ 3,177 | $ 4,199 | $ 2,805 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Net Income per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Accounting Policies [Abstract] | |||
Weighted-average shares used in computing basic net income (loss) per share (in shares) | 77,370 | 77,578 | 77,787 |
Add potentially dilutive securities (in shares) | 789 | 623 | 1,346 |
Weighted-average shares used in computing basic and diluted net income per share (in shares) | 78,159 | 78,201 | 79,133 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Unrealized losses on available-for-sale marketable securities and other investments | $ (727) | $ (2,749) |
Translation adjustments | (5,568) | (5,675) |
Unrealized gains on derivative instruments | 2,243 | 2,846 |
Accumulated other comprehensive loss | $ (4,052) | $ (5,578) |
Balance Sheet Components - Mark
Balance Sheet Components - Marketable Securities (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Abstract] | ||
Amortized Cost | $ 150,789 | $ 131,251 |
Gross Unrealized Gains | 367 | 0 |
Gross Unrealized Losses | (649) | (2,245) |
Fair Value | 150,507 | 129,006 |
Amortized Cost | ||
Due in one year or less | 94,772 | 77,663 |
Due after one year to five years | 56,017 | 53,588 |
Amortized Cost | 150,789 | 131,251 |
Fair Value | ||
Due in one year or less | 94,370 | 76,902 |
Due after one year to five years | 56,137 | 52,104 |
Fair Value | 150,507 | 129,006 |
U.S. treasuries | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized Cost | 45,772 | 25,498 |
Gross Unrealized Gains | 91 | 0 |
Gross Unrealized Losses | (26) | (479) |
Fair Value | 45,837 | 25,019 |
Amortized Cost | ||
Amortized Cost | 45,772 | 25,498 |
Fair Value | ||
Fair Value | 45,837 | 25,019 |
Commercial paper | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized Cost | 13,319 | 24,893 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (2) | (53) |
Fair Value | 13,317 | 24,840 |
Amortized Cost | ||
Amortized Cost | 13,319 | 24,893 |
Fair Value | ||
Fair Value | 13,317 | 24,840 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized Cost | 81,612 | 68,845 |
Gross Unrealized Gains | 267 | 0 |
Gross Unrealized Losses | (529) | (1,449) |
Fair Value | 81,350 | 67,396 |
Amortized Cost | ||
Amortized Cost | 81,612 | 68,845 |
Fair Value | ||
Fair Value | 81,350 | 67,396 |
Certificates of deposit | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized Cost | 720 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (14) | |
Fair Value | 706 | |
Amortized Cost | ||
Amortized Cost | 720 | |
Fair Value | ||
Fair Value | 706 | |
U.S. agency securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized Cost | 10,086 | 11,295 |
Gross Unrealized Gains | 9 | 0 |
Gross Unrealized Losses | (92) | (250) |
Fair Value | 10,003 | 11,045 |
Amortized Cost | ||
Amortized Cost | 10,086 | 11,295 |
Fair Value | ||
Fair Value | $ 10,003 | $ 11,045 |
Balance Sheet Components - Inve
Balance Sheet Components - Inventory (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Balance Sheet Components [Abstract] | ||
Raw materials | $ 50,808 | $ 55,726 |
Work-in-progress | 39,336 | 46,067 |
Finished goods | 21,541 | 21,364 |
Inventory, net | $ 111,685 | $ 123,157 |
Balance Sheet Components - Prop
Balance Sheet Components - Property Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 495,284 | $ 478,101 |
Less: Accumulated depreciation and amortization | (358,021) | (335,711) |
Net property, plant and equipment | 137,263 | 142,390 |
Construction-in-progress | 67,136 | 47,458 |
Total | 204,399 | 189,848 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 17,124 | 17,136 |
Building and building improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 46,526 | 44,932 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 286,215 | 276,180 |
Computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 46,866 | 45,813 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 7,490 | 7,540 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 91,063 | $ 86,500 |
Balance Sheet Components - Accr
Balance Sheet Components - Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 |
Accrued Liabilities, Current [Abstract] | |||
Accrued compensation and benefits | $ 20,073 | $ 15,864 | |
Accrued income and other taxes | 8,205 | 12,817 | |
Accrued employee stock purchase plan contributions withheld | 4,263 | 4,585 | |
Accrued warranty | 3,177 | 4,199 | |
Accrued restructuring charges | 0 | 1,249 | $ 2,478 |
Other accrued expenses | 5,319 | 3,401 | |
Total | $ 41,037 | $ 42,115 |
Acquisition - Additional Inform
Acquisition - Additional Information (Details) - Woburn $ in Millions | Jun. 09, 2022 USD ($) |
Business Acquisition [Line Items] | |
Total acquisition consideration | $ 3.4 |
Developed Technology Rights | |
Business Acquisition [Line Items] | |
Weighted average useful life (in years) | 3 years |
Acquisition - Assets Acquired a
Acquisition - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 | Jun. 09, 2022 | Dec. 25, 2021 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 201,090 | $ 211,444 | $ 212,299 | |
Woburn | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | $ 178 | |||
Inventories | 7,041 | |||
Property, plant and equipment | 479 | |||
Prepaid expenses and other assets | 117 | |||
Other asset | 28 | |||
Tangible assets acquired | 7,843 | |||
Deferred revenue | (5,513) | |||
Accounts payable and accrued liabilities | (30) | |||
Total net tangible assets acquired and liabilities assumed | 2,300 | |||
Intangible assets | 500 | |||
Goodwill | 550 | |||
Net assets acquired | $ 3,350 |
Divesture (Details)
Divesture (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Nov. 01, 2023 | Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | Sep. 18, 2023 | Oct. 09, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gain on sale of business | $ (72,953) | $ 0 | $ 0 | |||
Liability recorded associated with divesture | 41,037 | $ 42,115 | ||||
Disposal Group, Held-for-Sale, Not Discontinued Operations | FRT Metrology | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Cash consideration | $ 99,031 | $ 100,000 | $ 24,400 | |||
Cash received, adjusted amount | 99,800 | |||||
Net assets | $ 26,800 | |||||
Gain on sale of business | (73,000) | |||||
Liability recorded associated with divesture | $ 5,900 |
Divesture - Fair Value Disclosu
Divesture - Fair Value Disclosure (Details) - Disposal Group, Held-for-Sale, Not Discontinued Operations - FRT Metrology - USD ($) $ in Thousands | Nov. 01, 2023 | Sep. 18, 2023 | Oct. 09, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Fair value of sale consideration | $ 99,031 | $ 100,000 | $ 24,400 |
Estimated working capital adjustment | 4,029 | ||
Cash transferred to the buyer at closing | (2,049) | ||
Direct costs to sell | (1,225) | ||
Fair value of sale consideration | $ 99,786 |
Divesture - Schedule of Assets
Divesture - Schedule of Assets and Liabilities Held-for-Sale (Details) - Disposal Group, Held-for-Sale, Not Discontinued Operations - FRT Metrology $ in Thousands | Nov. 01, 2023 USD ($) |
ASSETS | |
Accounts receivable, net | $ 7,738 |
Inventories, net | 6,446 |
Other current assets | 635 |
Total current assets | 14,819 |
Intangibles, net | 6,897 |
Goodwill | 10,660 |
Other assets | 1,612 |
Total assets | 33,988 |
LIABILITIES | |
Current liabilities | 4,300 |
Other liabilities | 2,856 |
Total liabilities | $ 7,156 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
Term loan | $ 14,448 | $ 15,499 |
Less unamortized issuance costs | (59) | (65) |
Term loan less issuance costs | $ 14,389 | $ 15,434 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) $ in Thousands | Jun. 22, 2020 | Dec. 30, 2023 | Dec. 31, 2022 | Mar. 17, 2020 |
Debt Instrument [Line Items] | ||||
Term loan | $ 14,448 | $ 15,499 | ||
Building Term Loan | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 18,000 | |||
Interest rate at period end | 7.20% | |||
Term loan | $ 14,400 | |||
Debt instrument, term | 15 years | |||
Debt instrument, interest payment term | 15 years | |||
Debt instrument, interest rate, effective percentage | 2.75% | |||
Building Term Loan | Interest Rate Contract | ||||
Debt Instrument [Line Items] | ||||
Derivative, Notional Amount | (18,000) | $ (18,000) | ||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Building Term Loan | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.75% | |||
Additional SOFR | Building Term Loan | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.1148% | |||
Senior Secured Term Loan | ||||
Debt Instrument [Line Items] | ||||
Derivative, Notional Amount | $ (14,400) |
Debt - Future Principle and Int
Debt - Future Principle and Interest Payments (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Principal, 2022 | $ 1,080 | |
Principal, 2023 | 1,111 | |
Principal, 2024 | 1,142 | |
Principal, 2025 | 1,175 | |
Principal, 2026 | 1,208 | |
Principal, 2027 and thereafter | 8,732 | |
Principal, total | 14,448 | $ 15,499 |
Interest, 2022 | 1,025 | |
Interest, 2023 | 937 | |
Interest, 2024 | 857 | |
Interest, 2025 | 773 | |
Interest, 2026 | 688 | |
Interest, 2027 and thereafter | 2,163 | |
Interest, total | 6,443 | |
Total payments, 2022 | 2,105 | |
Total payments, 2023 | 2,048 | |
Total payments, 2024 | 1,999 | |
Total payments, 2025 | 1,948 | |
Total payments, 2026 | 1,896 | |
Total payments, 2027 and thereafter | 10,895 | |
Long-term debt, maturities, total payments due | 20,891 | |
Building Term Loan | ||
Debt Instrument [Line Items] | ||
Principal, total | $ 14,400 | |
Interest rate at period end | 7.20% |
Leases - Narrative (Details)
Leases - Narrative (Details) | Dec. 30, 2023 |
Lessee, Lease, Description [Line Items] | |
Operating lease, renewal term | 20 years |
Operating lease, weighted average remaining lease term | 4 years 7 months 6 days |
Operating lease, weighted average discount rate | 4.60% |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, term of contract | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, term of contract | 11 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Leases [Abstract] | |||
Operating lease expense | $ 8,453 | $ 8,595 | $ 8,485 |
Short-term lease expense | 524 | 385 | 180 |
Variable lease expense | 2,389 | 2,393 | 1,842 |
Total lease expense | $ 11,366 | $ 11,373 | $ 10,507 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Payments Under Leases (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
2024 | $ 9,337 | |
2025 | 9,215 | |
2026 | 7,586 | |
2027 | 7,154 | |
2028 | 3,870 | |
Thereafter | 1,432 | |
Total minimum lease payments | 38,594 | |
Less: interest | (4,838) | |
Present value of net minimum lease payments | 33,756 | |
Less: current portion | (8,422) | $ (7,353) |
Long-term operating lease liabilities | $ 25,334 | $ 27,587 |
Restructuring Charges - Narrati
Restructuring Charges - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | 14 Months Ended | 27 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 30, 2023 | Dec. 30, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 1,835 | $ 15,586 | ||
2022 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Workforce reduction (percent) | 13% | |||
Restructuring charges | $ 8,100 | |||
2022 Restructuring Plan | Corporate and Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 500 | |||
2021 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 800 | $ 13,300 | ||
Probe Cards | 2022 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 1,100 | 7,100 | ||
Probe Cards | 2021 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 300 | 10,100 | ||
Systems | 2022 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 500 | |||
Systems | 2021 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 500 | 3,200 | ||
Employee Severance and Benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 917 | 7,269 | ||
Employee Severance and Benefits | 2021 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 1,400 | |||
Contract Termination & Other Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 233 | 502 | ||
Contract Termination & Other Costs | 2021 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 2,000 | |||
Inventory Impairments & Other Inventory Related Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 390 | 7,629 | ||
Inventory Impairments & Other Inventory Related Costs | 2021 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 9,400 | |||
Other Restructuring | 2021 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 500 | |||
Stock-based Compensation | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 295 | $ 0 | ||
Stock-based Compensation | 2022 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 300 |
Restructuring Charges - Restruc
Restructuring Charges - Restructuring Costs by Reportable Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 1,835 | $ 15,586 | |
Cost of revenues | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 357 | 11,775 | $ 3,205 |
Research and development | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 291 | 1,498 | 869 |
Selling, general and administrative | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 1,187 | $ 2,166 | $ 50 |
Restructuring Charges - Schedul
Restructuring Charges - Schedule of Restructuring Accrual Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve, beginning balance | $ 1,249 | $ 2,478 | |
Restructuring charges | 1,835 | 15,586 | |
Cash payments | (2,488) | (9,991) | |
Adjustment to restructuring charges | (147) | ||
Non-cash settlement | (596) | (6,677) | |
Restructuring reserve, ending balance | 0 | 1,249 | $ 2,478 |
Operating Expense | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 1,835 | 15,439 | 4,124 |
Cost of revenues | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 357 | 11,775 | 3,205 |
Research and development | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 291 | 1,498 | 869 |
Selling, general and administrative | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 1,187 | 2,166 | 50 |
Employee Severance and Benefits | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve, beginning balance | 1,249 | 1,028 | |
Restructuring charges | 917 | 7,269 | |
Cash payments | (2,166) | (7,048) | |
Adjustment to restructuring charges | 0 | ||
Non-cash settlement | 0 | 0 | |
Restructuring reserve, ending balance | 0 | 1,249 | 1,028 |
Contract Termination & Other Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve, beginning balance | 0 | 1,450 | |
Restructuring charges | 233 | 502 | |
Cash payments | (233) | (1,719) | |
Adjustment to restructuring charges | (147) | ||
Non-cash settlement | 0 | (86) | |
Restructuring reserve, ending balance | 0 | 0 | 1,450 |
Inventory Impairments & Other Inventory Related Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve, beginning balance | 0 | 0 | |
Restructuring charges | 390 | 7,629 | |
Cash payments | (89) | (1,112) | |
Adjustment to restructuring charges | 0 | ||
Non-cash settlement | (301) | (6,517) | |
Restructuring reserve, ending balance | 0 | 0 | 0 |
Property and Equipment Impairments & Other Asset Related Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve, beginning balance | 0 | 0 | |
Restructuring charges | 0 | 186 | |
Cash payments | 0 | (112) | |
Adjustment to restructuring charges | 0 | ||
Non-cash settlement | 0 | (74) | |
Restructuring reserve, ending balance | 0 | 0 | 0 |
Stock-based Compensation | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve, beginning balance | 0 | 0 | |
Restructuring charges | 295 | 0 | |
Cash payments | 0 | 0 | |
Adjustment to restructuring charges | 0 | ||
Non-cash settlement | (295) | 0 | |
Restructuring reserve, ending balance | $ 0 | $ 0 | $ 0 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Foreign Currency Derivatives (Details) - 12 months ended Dec. 30, 2023 € in Thousands, ₩ in Thousands, ¥ in Thousands, $ in Thousands | USD ($) | EUR (€) | JPY (¥) | KRW (₩) |
Derivatives, Fair Value [Line Items] | ||||
Cash flow hedge amount to be reclassified within twelve months | $ 300 | |||
Buy | Euro | Foreign Exchange Forward | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, notional amount | (29,224) | € (26,597) | ||
Buy | Korean Won | Foreign Exchange Forward | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, notional amount | (1,815) | ₩ (2,334,329) | ||
Sell | Japanese Yen | Foreign Exchange Forward | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, notional amount | (21,073) | ¥ (2,961,827) | ||
Sell | Taiwan Dollar | Foreign Exchange Forward | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, notional amount | $ (2,611) | ¥ (79,324) |
Derivative Financial Instrume_4
Derivative Financial Instruments - Gains (Losses) Of Cash Flow Hedges (Details) - Foreign Exchange Forward - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Not Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Foreign exchange forward contracts | $ 2,504 | $ 2,439 | $ 1,585 |
Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Amount of Gain Recognized in AOCL on Derivative (Effective Portion) | 160 | (1,688) | (1,096) |
Amount of Gain or (Loss) Reclassified from AOCL into Income (Effective Portion) | 377 | (2,648) | 251 |
Designated as Hedging Instrument | Cost of revenues | |||
Derivatives, Fair Value [Line Items] | |||
Amount of Gain or (Loss) Reclassified from AOCL into Income (Effective Portion) | 222 | (1,816) | 184 |
Designated as Hedging Instrument | Research and development | |||
Derivatives, Fair Value [Line Items] | |||
Amount of Gain or (Loss) Reclassified from AOCL into Income (Effective Portion) | 75 | (376) | 3 |
Designated as Hedging Instrument | Selling, general and administrative | |||
Derivatives, Fair Value [Line Items] | |||
Amount of Gain or (Loss) Reclassified from AOCL into Income (Effective Portion) | $ 80 | $ (456) | $ 64 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Interest Rate Swaps (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | Mar. 17, 2020 | |
Building Term Loan | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Debt instrument, interest rate, effective percentage | 2.75% | |||
Interest Rate Contract | Building Term Loan | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, notional amount | $ 18,000 | $ 18,000 | ||
Interest Rate Swap | Designated as Hedging Instrument | Cash Flow Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain Recognized in AOCL on Derivative (Effective Portion) | 230 | $ 1,906 | $ 451 | |
Interest Rate Swap | Other income (expense), net | Designated as Hedging Instrument | Cash Flow Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from AOCL into Income (Effective Portion) | 615 | $ 106 | $ (154) | |
Senior Secured Term Loan | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, notional amount | $ 14,400 | |||
LIBOR | Building Term Loan | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Basis spread on variable rate | 1.75% |
Fair Value - Narrative (Details
Fair Value - Narrative (Details) - USD ($) | Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 |
Nonrecurring | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets (liabilities), net | $ 0 | $ 0 | $ 0 |
Fair Value - Assets and Liabili
Fair Value - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents: | $ 115,561 | $ 27,244 |
Marketable securities: | 150,507 | 129,006 |
Total assets | 268,341 | 160,231 |
Liabilities measured at fair value | (30) | (193) |
Foreign exchange derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative contracts | 284 | 664 |
Derivative liability | (30) | (193) |
Interest rate swap derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative contracts | 1,989 | |
Interest rate swap derivative contracts | Designated as Hedging Instrument | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative contracts | 2,374 | |
Promissory note receivable | Designated as Hedging Instrument | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative contracts | 943 | |
Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents: | 110,980 | 21,279 |
Commercial paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents: | 4,969 | |
Marketable securities: | 13,317 | 24,840 |
U.S. agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents: | 996 | |
Marketable securities: | 10,003 | 11,045 |
U.S. treasuries | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents: | 4,581 | |
Marketable securities: | 45,837 | 25,019 |
Certificates of deposit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities: | 706 | |
Corporate bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities: | 81,350 | 67,396 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents: | 115,561 | 21,279 |
Marketable securities: | 45,837 | 25,019 |
Total assets | 161,398 | 46,298 |
Liabilities measured at fair value | 0 | 0 |
Level 1 | Foreign exchange derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative contracts | 0 | 0 |
Derivative liability | 0 | 0 |
Level 1 | Interest rate swap derivative contracts | ||
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 | |
Level 1 | Promissory note receivable | Designated as Hedging Instrument | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative contracts | 0 | |
Level 1 | Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents: | 110,980 | 21,279 |
Level 1 | Commercial paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents: | 0 | |
Marketable securities: | 0 | 0 |
Level 1 | U.S. agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents: | 0 | |
Marketable securities: | 0 | 0 |
Level 1 | U.S. treasuries | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents: | 4,581 | |
Marketable securities: | 45,837 | 25,019 |
Level 1 | Certificates of deposit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
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: | 0 | 5,965 |
Marketable securities: | 104,670 | 103,987 |
Total assets | 106,943 | 112,990 |
Liabilities measured at fair value | (30) | (193) |
Level 2 | Foreign exchange derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative contracts | 284 | 664 |
Derivative liability | (30) | (193) |
Level 2 | Interest rate swap derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative contracts | 1,989 | |
Level 2 | Interest rate swap derivative contracts | Designated as Hedging Instrument | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative contracts | 2,374 | |
Level 2 | Promissory note receivable | Designated as Hedging Instrument | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative contracts | 0 | |
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: | 4,969 | |
Marketable securities: | 13,317 | 24,840 |
Level 2 | U.S. agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents: | 996 | |
Marketable securities: | 10,003 | 11,045 |
Level 2 | U.S. treasuries | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents: | 0 | |
Marketable securities: | 0 | 0 |
Level 2 | Certificates of deposit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities: | 706 | |
Level 2 | Corporate bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities: | 81,350 | 67,396 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents: | 0 | 0 |
Marketable securities: | 0 | 0 |
Total assets | 0 | 943 |
Liabilities measured at fair value | 0 | 0 |
Level 3 | Foreign exchange derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative contracts | 0 | 0 |
Derivative liability | 0 | 0 |
Level 3 | Interest rate swap derivative contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative contracts | 0 | |
Level 3 | Interest rate swap derivative contracts | Designated as Hedging Instrument | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative contracts | 0 | |
Level 3 | Promissory note receivable | Designated as Hedging Instrument | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative contracts | 943 | |
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 | |
Marketable securities: | 0 | 0 |
Level 3 | U.S. agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents: | 0 | |
Marketable securities: | 0 | 0 |
Level 3 | U.S. treasuries | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents: | 0 | |
Marketable securities: | 0 | 0 |
Level 3 | Certificates of deposit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities: | 0 | |
Level 3 | Corporate bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities: | $ 0 | $ 0 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 211,444 | $ 212,299 |
Reduction - FRT divestiture | (10,660) | |
Foreign currency translation | 306 | (1,405) |
Goodwill, ending balance | 201,090 | 211,444 |
Woburn | ||
Goodwill [Roll Forward] | ||
Goodwill, acquired during period | 550 | |
Probe Cards | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 178,424 | 178,424 |
Reduction - FRT divestiture | 0 | |
Foreign currency translation | 0 | 0 |
Goodwill, ending balance | 178,424 | 178,424 |
Probe Cards | Woburn | ||
Goodwill [Roll Forward] | ||
Goodwill, acquired during period | 0 | |
Systems | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 33,020 | 33,875 |
Reduction - FRT divestiture | (10,660) | |
Foreign currency translation | 306 | (1,405) |
Goodwill, ending balance | $ 22,666 | 33,020 |
Systems | Woburn | ||
Goodwill [Roll Forward] | ||
Goodwill, acquired during period | $ 550 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 215,823 | $ 230,725 |
Accumulated Amortization | 202,885 | 203,974 |
Net | 12,938 | 26,751 |
Existing developed technologies | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 159,593 | 171,441 |
Accumulated Amortization | 148,445 | 151,212 |
Net | 11,148 | 20,229 |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 7,808 | 7,972 |
Accumulated Amortization | 7,728 | 7,759 |
Net | 80 | 213 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 48,022 | 50,912 |
Accumulated Amortization | 46,712 | 45,003 |
Net | 1,310 | 5,909 |
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_4
Goodwill and Intangible Assets - Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Amortization of intangible assets | $ 6,850 | $ 9,391 | $ 18,747 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Rolling Maturity [Abstract] | |||
2024 | 2,561 | ||
2025 | 2,330 | ||
2026 | 1,630 | ||
2027 | 1,630 | ||
2028 | 1,630 | ||
Thereafter | 2,757 | ||
Total | 12,538 | ||
Cost of revenues | |||
Property, Plant and Equipment [Line Items] | |||
Amortization of intangible assets | 3,081 | 3,225 | 12,269 |
Selling, general and administrative | |||
Property, Plant and Equipment [Line Items] | |||
Amortization of intangible assets | $ 3,769 | $ 6,166 | $ 6,478 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Impairment of intangible assets | $ 0 | $ 0 | $ 0 |
Stockholders' Equity - Preferre
Stockholders' Equity - Preferred Stock (Details) - $ / shares | Dec. 30, 2023 | Dec. 31, 2022 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Preferred stock authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock par value (in USD per share) | $ 0.001 | $ 0.001 |
Preferred Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Preferred stock authorized (in shares) | 10,000,000 | |
Preferred stock par value (in USD per share) | $ 0.001 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock and Repurchase Program (Details) - USD ($) | 12 Months Ended | |||||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | Oct. 30, 2023 | May 20, 2022 | Oct. 26, 2020 | |
Class of Stock [Line Items] | ||||||
Dividends declared and paid | $ 0 | |||||
Stock repurchased during the period, amount | $ 19,801,000 | $ 82,328,000 | $ 24,038,000 | |||
Common Stock | 2020 Share Repurchase Program | ||||||
Class of Stock [Line Items] | ||||||
Stock repurchase program authorized amount | $ 50,000,000 | |||||
Stock repurchased during the period (in shares) | 676,408 | 622,400 | ||||
Stock repurchased during the period, amount | $ 26,000,000 | $ 24,000,000 | ||||
Common Stock | 2022 Share Repurchase Program | ||||||
Class of Stock [Line Items] | ||||||
Stock repurchase program authorized amount | $ 75,000,000 | |||||
Stock repurchased during the period (in shares) | 504,352 | 1,700,893 | ||||
Stock repurchased during the period, amount | $ 18,600,000 | $ 56,400,000 | ||||
Common Stock | 2023 Share Repurchase Program | ||||||
Class of Stock [Line Items] | ||||||
Stock repurchase program authorized amount | $ 75,000,000 | |||||
Stock repurchased during the period (in shares) | 32,020 | |||||
Stock repurchased during the period, amount | $ 1,200,000 | |||||
Remaining available for future repurchases | $ 73,800,000 |
Stockholders' Equity - Equity I
Stockholders' Equity - Equity Incentive Plans (Details) - 2012 Plan | 12 Months Ended |
Dec. 30, 2023 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares authorized for issuance (in shares) | 27,400,000 |
Shares available for grant (in shares) | 5,000,000 |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
Stockholders' Equity - Restrict
Stockholders' Equity - Restricted Stock Units (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Weighted Average Grant Date Fair Value | ||||
Weighted Average Grant Date Fair Value, Granted (in USD per share) | $ 33.85 | $ 34.83 | $ 36.12 | |
Total stock-based compensation | $ 38,616 | $ 31,337 | $ 29,384 | |
Performance Restricted Stock Units | ||||
Number of Shares | ||||
Number of Shares, Granted (in shares) | 172,680 | 204,903 | 197,128 | |
Weighted Average Grant Date Fair Value | ||||
Performance period | 3 years | |||
Stock options granted (in shares) | 172,680 | 204,903 | 197,128 | |
Total stock-based compensation | $ 8,600 | $ 8,600 | $ 8,600 | |
2012 Plan | ||||
Number of Shares | ||||
Number of Shares, Granted (in shares) | 258,000 | |||
Weighted Average Grant Date Fair Value | ||||
Stock options granted (in shares) | 258,000 | |||
2012 Plan | Restricted stock units | ||||
Number of Shares | ||||
Number of Shares, Restricted stock units, beginning balance (in shares) | 2,227,081 | |||
Number of Shares, Granted (in shares) | 1,417,931 | |||
Number of Shares, Vested (in shares) | (941,494) | |||
Number of Shares, Canceled (in shares) | (537,789) | |||
Number of Shares, Restricted stock units, ending balance (in shares) | 2,165,729 | 2,227,081 | ||
Weighted Average Grant Date Fair Value | ||||
Weighted Average Grant Date Fair Value, Restricted stock units, beginning balance (in USD per share) | $ 35.28 | |||
Weighted Average Grant Date Fair Value, Granted (in USD per share) | 33.85 | |||
Weighted Average Grant Date Fair Value, Vested (in USD per share) | 33.32 | |||
Weighted Average Grant Date Fair Value, Canceled (in USD per share) | 32.66 | |||
Weighted Average Grant Date Fair Value, Restricted stock units, ending balance (in USD per share) | $ 35.85 | $ 35.28 | ||
Stock options granted (in shares) | 1,417,931 | |||
2019 PRSU Grant | Performance Restricted Stock Units | ||||
Number of Shares | ||||
Number of Shares, Canceled (in shares) | 0 | |||
Number of Shares, Restricted stock units, ending balance (in shares) | 191,400 |
Stockholders' Equity - Employee
Stockholders' Equity - Employee Stock Purchase Plan (Details) | 12 Months Ended |
Dec. 30, 2023 purchasePeriod $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Discount from market price, offering date | 85% |
Employee Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares authorized for issuance (in shares) | 12,137,559 |
Issuance of common stock under the Employee Stock Purchase Plan (in shares) | 363,190 |
Weighted average exercise price, exercisable (in USD per share) | $ / shares | $ 24.29 |
Weighted average discount (in USD per share) | $ / shares | $ (7.65) |
Shares available for grant (in shares) | 3,613,021 |
Employee Stock | Twelve Month | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Offering period, duration | 12 months |
Number of purchase periods | purchasePeriod | 2 |
Purchase period, duration | 6 months |
Employee Stock | Six Month | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Offering period, duration | 6 months |
Number of purchase periods | purchasePeriod | 1 |
Purchase period, duration | 6 months |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-based compensation details (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Weighted average grant date per share fair value of RSUs granted (in USD per share) | $ 33.85 | $ 34.83 | $ 36.12 |
Total intrinsic value of stock options exercised | $ 0 | $ 0 | $ 3,179 |
Fair value of RSUs vested | $ 32,820 | $ 42,324 | $ 54,948 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation | $ 38,616 | $ 31,337 | $ 29,384 |
Stock-based compensation tax benefit (expense) | (1,424) | 2,772 | 6,118 |
Cost of revenues | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation | 6,854 | 3,807 | 5,200 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation | 10,652 | 8,217 | 7,583 |
Selling, general and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation | $ 21,110 | $ 19,313 | $ 16,601 |
Stock-Based Compensation - Unre
Stock-Based Compensation - Unrecognized Stock-Based Compensation (Details) $ in Thousands | 12 Months Ended |
Dec. 30, 2023 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Expense | $ 59,317 |
Weighted Average Recognition Period (Years) | 2 years |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Expense | $ 48,040 |
Weighted Average Recognition Period (Years) | 2 years |
Performance restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Expense | $ 10,902 |
Weighted Average Recognition Period (Years) | 2 years |
Employee stock purchase plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Expense | $ 375 |
Weighted Average Recognition Period (Years) | 1 month 6 days |
Stock-Based Compensation - Valu
Stock-Based Compensation - Valuation Assumptions (Details) | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Performance restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0% | 0% | 0% |
Expected volatility | 50.70% | 53% | 52.50% |
Risk-free interest rate | 4.40% | 2.80% | 0.30% |
Expected life (in years) | 2 years 10 months 24 days | 2 years 10 months 24 days | 2 years 10 months 24 days |
Employee Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0% | 0% | 0% |
Minimum | Employee Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 40.60% | 42.60% | 33.60% |
Risk-free interest rate | 0.80% | 0.10% | 0.10% |
Expected life (in years) | 6 months | 6 months | 6 months |
Maximum | Employee Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 60.20% | 60.80% | 74.40% |
Risk-free interest rate | 5.50% | 3% | 1.50% |
Expected life (in years) | 1 year | 1 year | 1 year |
Income Taxes - Components of In
Income Taxes - Components of Income Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | |||
United States | $ (10,681) | $ 30,047 | $ 74,298 |
Foreign | 99,948 | 27,823 | 24,202 |
Income before income taxes | $ 89,267 | $ 57,870 | $ 98,500 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Current provision: | |||
Federal | $ 8,970 | $ 4,330 | $ 2,334 |
State | 835 | 520 | 712 |
Foreign | 9,175 | 8,625 | 7,661 |
Total current provision (benefit) | 18,980 | 13,475 | 10,707 |
Deferred provision (benefit): | |||
Federal | (10,810) | (5,886) | 4,651 |
State | (330) | 118 | 522 |
Foreign | (960) | (575) | (1,304) |
Total deferred provision (benefit) | (12,100) | (6,343) | 3,869 |
Total provision for income taxes | $ 6,880 | $ 7,132 | $ 14,576 |
Income Taxes - Tax Rate Reconci
Income Taxes - Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Income Tax Reconciliation | |||
U.S. statutory federal tax rate | $ 18,746 | $ 12,153 | $ 20,685 |
State taxes and credits, net of federal benefit | (87) | 16 | 811 |
Stock-based compensation | 1,424 | (2,772) | (6,118) |
Tax credits | (13,368) | (8,264) | (7,153) |
Foreign taxes at rates different than the U.S. | 9,046 | 2,404 | 2,286 |
Other permanent differences | 1,010 | 1,964 | 2,043 |
Foreign gain exclusion | (21,567) | 0 | 0 |
Global intangible low-taxed income | 7,885 | 7 | 0 |
Foreign derived intangible income | (2,986) | (5,160) | (2,486) |
Change in valuation allowance | 2,569 | 2,597 | 2,231 |
Tax contingencies, net of reversals | 4,259 | 3,124 | 2,812 |
Other | (51) | 1,063 | (535) |
Total provision for income taxes | $ 6,880 | $ 7,132 | $ 14,576 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Components of Deferred Tax Assets and Liabilities [Abstract] | ||
Tax credits | $ 29,074 | $ 33,025 |
Inventory reserve | 14,626 | 14,269 |
Other reserves and accruals | 9,580 | 6,527 |
Non-statutory stock options | 2,771 | 3,180 |
Lease liability | 6,175 | 6,024 |
Research and development expenditures capitalization | 51,698 | 36,821 |
Net operating loss carryforwards | 17,484 | 18,173 |
Gross deferred tax assets | 131,408 | 118,019 |
Valuation allowance | (45,864) | (43,295) |
Total deferred tax assets | 85,544 | 74,724 |
Right-of-use assets | (5,445) | (5,219) |
Acquired intangibles and fixed assets | (863) | (4,342) |
Unrealized investment gains | (103) | (103) |
Tax on undistributed earnings | (169) | (146) |
Total deferred tax liabilities | (6,580) | (9,810) |
Net deferred tax assets | $ 78,964 | $ 64,914 |
Income Taxes - Tax Credits and
Income Taxes - Tax Credits and Carryforwards (Details) $ in Thousands | Dec. 30, 2023 USD ($) |
California | |
Operating Loss Carryforwards [Line Items] | |
California research credits | $ 57,077 |
Singapore | |
Operating Loss Carryforwards [Line Items] | |
Singapore net operating loss carryforwards | 4,279 |
Federal | |
Operating Loss Carryforwards [Line Items] | |
Federal research and development tax credit | 19,672 |
Foreign tax credit carryforwards | 948 |
State | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | $ 241,241 |
Income Taxes - Undistributed Ea
Income Taxes - Undistributed Earnings (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Income Tax Contingency [Line Items] | ||
Repatriation of earnings of foreign subsidiaries | $ 39,300 | |
Deferred tax liabilities on undistributed earnings | 169 | $ 146 |
Non-US | ||
Income Tax Contingency [Line Items] | ||
Repatriation of earnings of foreign subsidiaries | 12,000 | |
United States | ||
Income Tax Contingency [Line Items] | ||
Repatriation of earnings of foreign subsidiaries | $ 27,300 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefit, beginning balance | $ 40,098 | $ 35,745 | $ 32,497 |
Additions based on tax positions related to the current year | 4,726 | 3,868 | 3,201 |
Additions based on tax positions from prior years | 858 | 795 | 124 |
Reductions for tax positions of prior years | 0 | 0 | 0 |
Reductions due to lapse of the applicable statute of limitations | (108) | (310) | (77) |
Unrecognized tax benefit, ending balance | 45,574 | 40,098 | 35,745 |
Interest and penalties recognized as a component of provision for income taxes | 34 | 30 | 40 |
Interest and penalties accrued at period end | 63 | $ 85 | $ 188 |
Tax-effected unrecognized tax benefits | $ 24,000 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Retirement Benefits [Abstract] | |||
Cost recognized under defined contribution plans | $ 2.3 | $ 2.7 | $ 2.7 |
Segments and Geographic Infor_3
Segments and Geographic Information - Operating Results By Segment (Details) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | Dec. 25, 2021 USD ($) | |
Segment Reporting [Abstract] | |||
Number of reportable segments | segment | 2 | ||
Segment Reporting Information [Line Items] | |||
Revenues | $ 663,102 | $ 747,937 | $ 769,674 |
Gross profit | $ 258,580 | $ 296,009 | $ 322,767 |
Gross margin | 39% | 39.60% | 41.90% |
Probe Cards | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 497,903 | $ 591,422 | $ 633,281 |
Systems | |||
Segment Reporting Information [Line Items] | |||
Revenues | 165,199 | 156,515 | 136,393 |
Operating Segments | Probe Cards | |||
Segment Reporting Information [Line Items] | |||
Revenues | 497,903 | 591,422 | 633,281 |
Gross profit | $ 185,392 | $ 235,562 | $ 279,873 |
Gross margin | 37.20% | 39.80% | 44.20% |
Operating Segments | Systems | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 165,199 | $ 156,515 | $ 136,393 |
Gross profit | $ 84,735 | $ 80,937 | $ 65,834 |
Gross margin | 51.30% | 51.70% | 48.30% |
Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 0 | $ 0 | $ 0 |
Gross profit | $ (11,547) | $ (20,490) | $ (22,940) |
Segments and Geographic Infor_4
Segments and Geographic Information - Revenue by Country (Details) - Geographic Concentration Risk - Revenue | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Product Information [Line Items] | |||
Concentration risk percentage | 100% | 100% | 100% |
Taiwan | |||
Product Information [Line Items] | |||
Concentration risk percentage | 22.30% | 22.70% | 24.20% |
China | |||
Product Information [Line Items] | |||
Concentration risk percentage | 13.80% | 21.50% | 21.20% |
United States | |||
Product Information [Line Items] | |||
Concentration risk percentage | 25.90% | 17.10% | 15.90% |
South Korea | |||
Product Information [Line Items] | |||
Concentration risk percentage | 17.80% | 14.90% | 16% |
Malaysia | |||
Product Information [Line Items] | |||
Concentration risk percentage | 4% | 6.70% | 6.40% |
Singapore | |||
Product Information [Line Items] | |||
Concentration risk percentage | 2.80% | 5.30% | 4.70% |
Europe | |||
Product Information [Line Items] | |||
Concentration risk percentage | 5.90% | 5.20% | 5.70% |
Japan | |||
Product Information [Line Items] | |||
Concentration risk percentage | 5.50% | 5.10% | 4.70% |
Rest of World | |||
Product Information [Line Items] | |||
Concentration risk percentage | 2% | 1.50% | 1.20% |
Segments and Geographic Infor_5
Segments and Geographic Information - Revenue by Market (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Revenue from External Customers [Line Items] | |||
Revenues | $ 663,102 | $ 747,937 | $ 769,674 |
Foundry & Logic | |||
Revenue from External Customers [Line Items] | |||
Revenues | 363,539 | 409,196 | 435,812 |
DRAM | |||
Revenue from External Customers [Line Items] | |||
Revenues | 113,779 | 133,446 | 156,049 |
Flash | |||
Revenue from External Customers [Line Items] | |||
Revenues | 20,585 | 48,780 | 41,420 |
Systems | |||
Revenue from External Customers [Line Items] | |||
Revenues | $ 165,199 | $ 156,515 | $ 136,393 |
Segments and Geographic Infor_6
Segments and Geographic Information - Revenue by Timing of Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenues | $ 663,102 | $ 747,937 | $ 769,674 |
Products transferred at a point in time | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenues | 649,769 | 732,194 | 754,826 |
Services transferred over time | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenues | 13,333 | 15,743 | 14,848 |
Probe Cards | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenues | 497,903 | 591,422 | 633,281 |
Probe Cards | Products transferred at a point in time | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenues | 494,624 | 587,738 | 630,038 |
Probe Cards | Services transferred over time | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenues | 3,279 | 3,684 | 3,243 |
Systems | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenues | 165,199 | 156,515 | 136,393 |
Systems | Products transferred at a point in time | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenues | 155,145 | 144,456 | 124,788 |
Systems | Services transferred over time | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenues | $ 10,054 | $ 12,059 | $ 11,605 |
Segments and Geographic Infor_7
Segments and Geographic Information - Long-Lived Assets by Geographical Location (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 |
Long-Lived Assets [Line Items] | |||
Long-lived assets | $ 448,946 | $ 459,405 | $ 430,406 |
United States | |||
Long-Lived Assets [Line Items] | |||
Long-lived assets | 414,607 | 406,529 | 372,338 |
Europe | |||
Long-Lived Assets [Line Items] | |||
Long-lived assets | 23,204 | 42,640 | 47,700 |
Asia Pacific [Member] | |||
Long-Lived Assets [Line Items] | |||
Long-lived assets | $ 11,135 | $ 10,236 | $ 10,368 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | Feb. 07, 2024 USD ($) |
Subsequent Event | Disposal Group, Held-for-Sale, Not Discontinued Operations | China Operations | |
Subsequent Event [Line Items] | |
Cash consideration | $ 25 |