Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 26, 2015 | Oct. 23, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | NANOMETRICS INC | |
Entity Central Index Key | 704,532 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 26, 2015 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-26 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 24,188,234 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 26, 2015 | Dec. 27, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 41,561 | $ 34,676 |
Marketable securities | 43,065 | 49,286 |
Accounts receivable, net of allowances of $159 and $253, respectively | 37,573 | 26,121 |
Inventories | 48,398 | 35,105 |
Inventories-delivered systems | 1,543 | 1,912 |
Prepaid expenses and other | 6,651 | 9,289 |
Deferred income tax assets | 1,438 | 1,457 |
Total current assets | 180,229 | 157,846 |
Property, plant and equipment, net | 45,944 | 49,633 |
Goodwill | 9,678 | 10,494 |
Intangible assets, net | 2,403 | 4,294 |
Deferred income tax assets | 385 | 410 |
Other assets | 497 | 559 |
Total assets | 239,136 | 223,236 |
Current liabilities: | ||
Accounts payable | 15,882 | 10,199 |
Accrued payroll and related expenses | 10,025 | 8,700 |
Deferred revenue | 10,985 | 10,021 |
Other current liabilities | 9,422 | 8,265 |
Income taxes payable | 1,236 | 1,017 |
Total current liabilities | 47,550 | 38,202 |
Deferred revenue | 939 | 2,591 |
Income taxes payable | 776 | 701 |
Deferred tax liabilities | 1,054 | 926 |
Other long-term liabilities | 1,018 | 1,279 |
Total liabilities | $ 51,337 | $ 43,699 |
Commitments and contingencies (Note 11) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 3,000,000 shares authorized; no shares issued or outstanding | $ 0 | $ 0 |
Common stock, $0.001 par value, 47,000,000 shares authorized: 24,176,806 and 23,813,729, respectively, issued and outstanding | 24 | 24 |
Additional paid-in capital | 256,878 | 251,396 |
Accumulated deficit | (64,396) | (69,114) |
Accumulated other comprehensive income (loss) | (4,707) | (2,769) |
Total stockholders’ equity | 187,799 | 179,537 |
Total liabilities and stockholders’ equity | $ 239,136 | $ 223,236 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 26, 2015 | Dec. 27, 2014 |
Statement of Financial Position [Abstract] | ||
Allowances for doubtful accounts | $ 159 | $ 253 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 3,000,000 | 3,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 47,000,000 | 47,000,000 |
Common stock, shares issued | 24,176,806 | 23,813,729 |
Common stock, shares outstanding | 24,176,806 | 23,813,729 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2015 | Sep. 27, 2014 | Sep. 26, 2015 | Sep. 27, 2014 | |
Net revenues: | ||||
Products | $ 36,414 | $ 19,487 | $ 113,689 | $ 101,991 |
Service | 9,264 | 7,646 | 30,993 | 24,747 |
Total net revenues | 45,678 | 27,133 | 144,682 | 126,738 |
Costs of net revenues: | ||||
Cost of products | 19,242 | 10,737 | 59,106 | 52,165 |
Cost of service | 3,749 | 4,292 | 15,158 | 14,061 |
Amortization of intangible assets | 468 | 688 | 1,557 | 2,039 |
Total costs of net revenues | 23,459 | 15,717 | 75,821 | 68,265 |
Gross profit | 22,219 | 11,416 | 68,861 | 58,473 |
Operating expenses: | ||||
Research and development | 8,579 | 8,037 | 24,896 | 25,724 |
Selling | 6,760 | 6,389 | 20,905 | 20,443 |
General and administrative | 5,590 | 5,781 | 16,901 | 18,120 |
Amortization of intangible assets | 26 | 103 | 89 | 318 |
Restructuring charge | 0 | 1,715 | 56 | 1,715 |
Total operating expenses | 20,955 | 22,025 | 62,847 | 66,320 |
Income (loss) from operations | 1,264 | (10,609) | 6,014 | (7,847) |
Other income (expense): | ||||
Interest income | 7 | 13 | 63 | 37 |
Interest expense | (86) | (90) | (252) | (286) |
Other income, net | 346 | (57) | 740 | 111 |
Total other income (expense), net | 267 | (134) | 551 | (138) |
Income (loss) before income taxes | 1,531 | (10,743) | 6,565 | (7,985) |
Provision for income taxes | 713 | 17,919 | 1,847 | 18,494 |
Net income (loss) | $ 818 | $ (28,662) | $ 4,718 | $ (26,479) |
Net income (loss) per share: | ||||
Basic (in dollars per share) | $ 0.03 | $ (1.19) | $ 0.20 | $ (1.11) |
Diluted (in dollars per share) | $ 0.03 | $ (1.19) | $ 0.19 | $ (1.11) |
Weighted average shares used in per share calculation: | ||||
Basic (in shares) | 24,145 | 24,132 | 24,010 | 23,928 |
Diluted (in shares) | 24,352 | 24,132 | 24,347 | 23,928 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2015 | Sep. 27, 2014 | Sep. 26, 2015 | Sep. 27, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 818 | $ (28,662) | $ 4,718 | $ (26,479) |
Other comprehensive income (loss): | ||||
Change in foreign currency translation adjustment | (235) | (1,637) | (1,980) | (1,252) |
Net change on unrealized gains on available-for-sale investments | 17 | (15) | 42 | (7) |
Other comprehensive income (loss) | (218) | (1,652) | (1,938) | (1,259) |
Comprehensive income (loss) | $ 600 | $ (30,314) | $ 2,780 | $ (27,738) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 26, 2015 | Sep. 27, 2014 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 4,718 | $ (26,479) |
Reconciliation of net income (loss) to net cash from operating activities: | ||
Depreciation and amortization | 6,826 | 8,660 |
Stock-based compensation | 4,664 | 5,115 |
Loss on disposal of fixed assets | 578 | 80 |
Provision for doubtful accounts receivable | 0 | 11 |
Inventory write-down | 1,971 | 1,109 |
Deferred income taxes | 173 | 20,776 |
Changes in fair value of contingent payments to Zygo Corporation | 137 | 118 |
Changes in assets and liabilities: | ||
Accounts receivable | (14,873) | 4,871 |
Inventories | (15,893) | (7,998) |
Inventories-delivered systems | 370 | 6,400 |
Prepaid expenses and other | 4,436 | 1,751 |
Accounts payable, accrued and other liabilities | 9,634 | (4,535) |
Deferred revenue | (688) | (16,270) |
Income taxes payable | 295 | (3,158) |
Net cash provided by (used in) operating activities | 2,348 | (9,549) |
Cash flows from investing activities: | ||
Sales of marketable securities | 2,884 | 0 |
Maturities of marketable securities | 30,279 | 25,570 |
Purchases of marketable securities | (27,298) | (26,810) |
Purchases of property, plant and equipment | (1,365) | (2,800) |
Net cash provided by (used in) investing activities | 4,500 | (4,040) |
Cash flows from financing activities: | ||
Payments to Zygo Corporation related to acquisition | (614) | (470) |
Proceeds from sale of shares under employee stock option plans and purchase plan | 3,642 | 5,852 |
Taxes paid on net issuance of stock awards | (1,104) | (664) |
Repurchases of common stock | (1,721) | 0 |
Net cash provided by financing activities | 203 | 4,718 |
Effect of exchange rate changes on cash and cash equivalents | (166) | (269) |
Net increase (decrease) in cash and cash equivalents | 6,885 | (9,140) |
Cash and cash equivalents, beginning of period | 34,676 | 44,765 |
Cash and cash equivalents, end of period | 41,561 | 35,625 |
Supplemental disclosure of non-cash investing activities: | ||
Transfer of inventory to property, plant and equipment, net | $ 1,068 | $ 4,627 |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 9 Months Ended |
Sep. 26, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business and Basis of Presentation | Nature of Business and Basis of Presentation Description of Business – Nanometrics Incorporated (“Nanometrics” or the “Company”) and its wholly-owned subsidiaries design, manufacture, market, sell and support optical critical dimension (“OCD”), thin film and overlay dimension metrology and inspection systems used primarily in the manufacturing of semiconductors, solar photovoltaics (“solar PV”) and high-brightness LEDs (“HB-LED”), as well as by customers in the silicon wafer and data storage industries. Nanometrics’ metrology systems precisely measure a wide range of film types deposited on substrates during manufacturing to control manufacturing processes and increase production yields in the fabrication of integrated circuits. The Company’s OCD technology is a patented critical dimension measurement technology that is used to precisely determine the dimensions on the semiconductor wafer that directly control the resulting performance of the integrated circuit devices. The thin film metrology systems use a broad spectrum of wavelengths, high-sensitivity optics, proprietary software, and patented technology to measure the thickness and uniformity of films deposited on silicon and other substrates as well as their chemical composition. The overlay metrology systems are used to measure the overlay accuracy of successive layers of semiconductor patterns on wafers in the photolithography process. Nanometrics’ inspection systems are used to find defects on patterned and unpatterned wafers at nearly every stage of the semiconductor production flow. The corporate headquarters of Nanometrics is located in Milpitas, California. Basis of Presentation – The accompanying condensed consolidated financial statements (“financial statements”) have been prepared on a consistent basis with the audited consolidated financial statements as of December 27, 2014, and include all normal recurring adjustments necessary to fairly state the information set forth therein. All significant intercompany accounts and transactions have been eliminated in consolidation. The financial statements have been prepared in accordance with the regulations of the United States Securities and Exchange Commission (“SEC”) for interim periods in accordance with S-X Article 10, and, therefore, omit certain information and footnote disclosure necessary to present the statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The operating results for interim periods are not necessarily indicative of the operating results that may be expected for the entire year. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the fiscal year ended December 27, 2014, which were included in the Company’s Annual Report on Form 10-K filed with the SEC on February 25, 2015. Out of Period Adjustments – During the three months ended September 26, 2015, the Company recorded out of period correcting adjustments that resulted to an increase in revenue of $0.3 million and an increase in accounts receivable, net, of $0.3 million . The Company determined that the impact of these errors was not material to previously filed annual or interim financial statements, and the effect of correcting these errors in the three and nine months ended September 26, 2015, was not material, and is not expected to be material to the 2015 financial statements. Fiscal Period – The Company uses a 52/53 week fiscal year ending on the last Saturday of the calendar year. All references to the quarter refer to Nanometrics’ fiscal quarter. The fiscal quarters presented herein consist of 13 weeks. Use of Estimates – The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ materially from those estimates. Estimates are used for, but not limited to, revenue recognition, the provision for doubtful accounts, the provision for excess, obsolete, or slow moving inventories, valuation of intangible and long-lived assets, warranty accruals, income taxes, valuation of stock-based compensation, and contingencies. Revenue Recognition – The Company derives revenue from the sale of process control metrology and inspection systems (“product revenue”) as well as spare part sales, billable service, service contracts, and upgrades (together “service revenue”). Upgrades are a group of parts and/or software that change the existing configuration of a product and are included in service revenue. They are distinguished from product revenue, which consists of complete, advanced process control metrology and inspection systems (the “system(s)”). Nanometrics’ systems consist of hardware and software components that function together to deliver the essential functionality of the system. Arrangements for sales of systems often include defined customer-specified acceptance criteria. In summary, the Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the seller's price is fixed or determinable, and collectability is reasonably assured. For product sales to existing customers, revenue recognition occurs at the time title and risk of loss transfer to the customer, which usually occurs upon shipment from the Company's manufacturing location, if it can be reliably demonstrated that the product has successfully met the defined customer specified acceptance criteria and all other recognition criteria have been met. For initial sales where the product has not previously met the defined customer specified acceptance criteria, product revenues are recognized upon the earlier of receipt of written customer acceptance or expiration of the contractual acceptance period. In Japan, where contractual terms with the customer specify risk of loss and title transfers upon customer acceptance, revenue is recognized upon receipt of written customer acceptance, provided that all other recognition criteria have been met. The Company warrants its products against defects in manufacturing. Upon recognition of product revenue, a liability is recorded for anticipated warranty costs. On occasion, customers request a warranty period longer than the Company's standard warranty. In those instances where extended warranty services are separately quoted to the customer, the associated revenue is deferred and recognized as service revenue ratably over the term of the contract. The portion of service contracts and extended warranty services agreements that are uncompleted at the end of any reporting period are included in deferred revenue. As part of its customer services, the Company sells software that is considered to be an upgrade to a customer's existing systems. These standalone software upgrades are not essential to the tangible product's functionality and are accounted for under software revenue recognition rules which require vendor specific objective evidence (“VSOE”) of fair value to allocate revenue in a multiple element arrangement. Revenue from upgrades is recognized when the upgrades are delivered to the customer, provided that all other recognition criteria have been met. Revenue related to spare parts is recognized upon shipment. Revenue related to billable services is recognized as the services are performed. Service contracts may be purchased by the customer during or after the warranty period and revenue is recognized ratably over the service contract period. Frequently, the Company delivers products and various services in a single transaction. The Company's deliverables consist of tools, installation, upgrades, billable services, spare parts, and service contracts. The Company's typical multi-element arrangements include a sale of one or multiple tools that include installation and standard warranty. Other arrangements consist of a sale of tools bundled with service elements or delivery of different types of services. The Company's tools, upgrades, and spare parts are generally delivered to customers within a period of up to six months from order date. Installation is usually performed soon after delivery of the tool. The portion of revenue associated with installation is deferred based on relative selling price and that revenue is recognized upon completion of the installation. Billable services are billed on a time and materials basis and performed as requested by customers. Under service contract arrangements, services are provided as needed over the fixed arrangement term, which terms can be up to twelve months . The Company does not grant its customers a general right of return or any refund terms and imposes a penalty on orders cancelled prior to the scheduled shipment date. The Company regularly evaluates its revenue arrangements to identify deliverables and to determine whether these deliverables are separable into multiple units of accounting. The Company allocates the arrangement consideration among the deliverables based on relative selling prices. The Company has established VSOE for some of its products and services when a substantial majority of selling prices falls within a narrow range when sold separately. For deliverables with no established VSOE, the Company uses best estimate of selling price to determine standalone selling price for such deliverable. The Company does not use third party evidence to determine standalone selling price since this information is not widely available in the market as the Company's products contain a significant element of proprietary technology and the solutions offered differ substantially from competitors. The Company has established a process for developing estimated selling prices, which incorporates historical selling prices, the effect of market conditions, gross margin objectives, pricing practices, as well as entity-specific factors. The Company monitors and evaluates estimated selling price on a regular basis to ensure that changes in circumstances are accounted for in a timely manner. When certain elements in multiple-element arrangements are not delivered or accepted at the end of a reporting period, the relative selling prices of undelivered elements are deferred until these elements are delivered and/or accepted. If deliverables cannot be accounted for as separate units of accounting, the entire arrangement is accounted for as a single unit of accounting and revenue is deferred until all elements are delivered and all revenue recognition requirements are met. Derivatives - The Company enters into forward foreign currency contracts that economically hedge the gains and losses generated by the re-measurement of certain recorded assets and liabilities in a non-functional currency and to offset certain operational exposures from the impact of changes in foreign currency exchange rates. Such exposures result from the portion of the Company’s operations, assets and liabilities that are denominated in currencies other than the U.S. dollar. These foreign currency exchange contracts are entered into to support transactions made in the normal course of business, and accordingly, are not speculative in nature. The contracts are for periods consistent with the terms of the underlying transactions. Changes in the fair value of these undesignated hedges are recognized in other income (expense), net immediately as an offset to the changes in the fair value of the asset or liability being hedged. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 26, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In July 2015, the Financial Accounting Standards Board ("FASB") issued an accounting standards update which simplifies the measurement of inventory by requiring inventory to be measured at the lower of cost and net realizable value. The new standard applies only to inventories for which cost is determined by methods other than last-in first-out and the retail inventory method. It is effective for public companies for annual reporting periods beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of this standard to determine if this guidance will have a material impact on its consolidated financial statements. In January 2015, the FASB issued an accounting standard update which simplifies income statement classification by removing the concept of extraordinary items from the U.S. GAAP. As a result, items that are both unusual and infrequent will no longer be separately reported net of tax after continuing operations. The new standard is effective for the fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The Company does not expect any impact on the adoption of this standard on its consolidated financial statements. In May 2014, the FASB issued an accounting standards update which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. In July 2015, the FASB deferred for one year the effective date of the new revenue standard, but early adoption will be permitted. The new standard will be effective for the Company on January 1, 2018. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that the standard will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. In July 2013, the FASB issued an accounting standards update which provides that a liability related to an unrecognized tax benefit would be offset against a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. In situations in which a net operating loss carryforward, a similar tax loss or a tax credit carryforward is not available at the reporting date under the tax law of the jurisdiction or the tax law of the jurisdiction does not require, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit will be presented in the financial statements as a liability and will not be combined with deferred tax assets. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. The new standard is effective for fiscal years and interim periods beginning after December 15, 2013. The Company adopted this standard during the three months ended March 29, 2014, resulting in a one-time tax benefit of $0.3 million , a reduction in deferred tax assets of $0.3 million , and a reduction in long-term income taxes payable of $0.6 million . |
Fair Value Measurements and Dis
Fair Value Measurements and Disclosures, and Financial Instruments | 9 Months Ended |
Sep. 26, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Disclosures, and Financial Instruments | Fair Value Measurements and Disclosures, and Financial Instruments Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The standard assumes that the transaction to sell the asset or transfer the liability occurs in the principal or most advantageous market for the asset or liability and establishes that the fair value of an asset or liability shall be determined based on the assumptions that market participants would use in pricing the asset or liability. The Company determines the fair values of its financial instruments based on the fair value hierarchy established in FASB Accounting Standards Codification (“ASC”) 820, Fair Value Measurement , which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The classification of a financial asset or liability within the hierarchy is based upon the lowest level input that is significant to the fair value measurement. The fair value hierarchy prioritizes the inputs into the following three levels that may be used to measure fair value: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 — Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. Such unobservable inputs include an estimated discount rate used in the Company’s discounted present value analysis of future cash flows, which reflects the Company’s estimate of debt with similar terms in the current credit markets. As there is currently minimal activity in such markets, the actual rate could be materially different. The following tables present the Company’s assets and liabilities measured at estimated fair value on a recurring basis, excluding accrued interest components, categorized in accordance with the fair value hierarchy (in thousands), as of the following dates: September 26, 2015 December 27, 2014 Fair Value Measurements Using Input Types Fair Value Measurements Using Input Types Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 642 $ — $ — $ 642 $ 610 $ — $ — $ 610 Commercial paper — 6,434 — 6,434 — — — — Total cash equivalents 642 6,434 — 7,076 610 — — 610 Marketable securities: U.S. Treasury, U.S. Government and U.S. Government agency debt securities — 21,684 — 21,684 2,497 20,537 — 23,034 Commercial paper, municipal securities and corporate debt securities — 21,381 — 21,381 — 26,252 — 26,252 Total marketable securities — 43,065 — 43,065 2,497 46,789 — 49,286 Total (1) $ 642 $ 49,499 $ — $ 50,141 $ 3,107 $ 46,789 $ — $ 49,896 Liabilities: Contingent consideration payable $ — $ — $ 1,920 $ 1,920 $ — $ — $ 2,397 $ 2,397 (1) Excludes $34.5 million and $34.1 million held in operating accounts as of September 26, 2015 and December 27, 2014 , respectively. The fair values of the marketable securities that are classified as Level 1 in the table above were derived from quoted market prices for identical assets or liabilities in active markets that the Company has the ability to access. The fair value of marketable securities that are classified as Level 2 in the table above were derived from non-binding market consensus prices that were corroborated by observable market data, quoted market prices for similar instruments, or pricing models, such as discounted cash flow techniques with all significant inputs derived from or corroborated by observable market data. There were no transfers of instruments between Level 1, Level 2 and Level 3 during the financial periods presented. Changes in Level 3 liabilities (in thousands) Fair value at December 27, 2014 $ 2,397 Payments made to Zygo Corporation (614 ) Change in fair value included in earnings 137 Fair value at September 26, 2015 $ 1,920 As of September 26, 2015 , the Company had liabilities of $1.9 million resulting from the acquisition of certain assets from Zygo Corporation (“Zygo”), which are measured at fair value on a recurring basis, with changes in fair value recorded in other income (expense), net. Of the $1.9 million of Zygo liabilities at September 26, 2015 , $1.2 million was a current liability and $0.7 million was a long-term liability. As of December 27, 2014 , the liabilities totaled $2.4 million of which $1.4 million was a current liability and $1.0 million was a long-term liability. The fair values of these liabilities were determined using Level 3 inputs applying a discounted cash flow model incorporating assumptions that market participants would use in their estimates of fair value. Some of these assumptions included estimates for discount rate, and timing and the amount of cash flows. Derivatives The Company uses foreign currency forward contracts to mitigate variability in gains and losses generated from the re-measurement of certain monetary assets and liabilities denominated in foreign currencies. These derivatives are carried at fair value with changes recorded in other income (expense), net in the consolidated statements of operations. Changes in the fair value of these derivatives are largely offset by re-measurement of the underlying assets and liabilities. The derivatives have maturities of approximately 30 days . The loss on settlement of forward foreign currency contracts included in the three and nine months ended September 26, 2015 , was $0.3 million , respectively, and is included in other income (expense), net, in the consolidated statements of operations. There were no forward foreign currency contracts entered into in fiscal 2014. The following table summarizes the Company’s outstanding derivative instruments on a gross basis as of September 26, 2015 : Notional Principal (in millions) Undesignated Hedges: Forward Foreign Currency Contracts $ 25.1 |
Cash and Investments
Cash and Investments | 9 Months Ended |
Sep. 26, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Cash and Investments | Cash and Investments The following tables present cash, cash equivalents, and available-for-sale investments as of the following dates (in thousands): September 26, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Market Value Cash $ 34,485 $ — $ — $ 34,485 Cash equivalents: Money market funds 642 — — 642 Commercial paper 6,434 — — 6,434 Marketable securities: Commercial paper 1,498 — — 1,498 U.S. Government agency securities 21,668 17 (1 ) 21,684 Municipal securities 3,714 5 (1 ) 3,718 Corporate debt securities 16,168 3 (6 ) 16,165 Total cash, cash equivalents, and marketable securities $ 84,609 $ 25 $ (8 ) $ 84,626 December 27, 2014 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Market Value Cash $ 34,066 $ — $ — $ 34,066 Cash equivalents: Money market funds 610 — — 610 Marketable securities: Commercial paper 805 — — 805 U.S. Treasury Securities 2,498 — (1 ) 2,497 U.S. Government agency securities 20,556 1 (19 ) 20,538 Municipal securities 3,755 1 (7 ) 3,749 Corporate debt securities 21,722 1 (26 ) 21,697 Total cash, cash equivalents, and marketable securities $ 84,012 $ 3 $ (53 ) $ 83,962 Available-for-sale marketable securities, readily convertible to cash, with maturity dates of 90 days or less are classified as cash equivalents, while those with maturity dates greater than 90 days are classified as marketable securities within short-term assets. All marketable securities as of September 26, 2015 and December 27, 2014 , were available-for-sale and reported at fair value based on the estimated or quoted market prices as of the balance sheet date. Unrealized gains or losses, net of tax effect, are recorded in accumulated other comprehensive income (loss) within stockholders’ equity. Both the gross unrealized gains and gross unrealized losses for the three and nine months ended September 26, 2015 and September 27, 2014 were insignificant and no marketable securities had other than temporary impairment. All marketable securities as of September 26, 2015 and December 27, 2014 , had maturity dates of less than two years and were not invested in foreign entities. |
Accounts Receivable
Accounts Receivable | 9 Months Ended |
Sep. 26, 2015 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable The Company maintains arrangements under which eligible accounts receivable in Japan are sold without recourse to unrelated third-party financial institutions. These receivables were not included in the consolidated balance sheets as the criteria for sale treatment had been met. The Company pays administrative fees as well as interest ranging from 1.15% to 1.68% based on the anticipated length of time between the date the sale is consummated and the expected collection date of the receivables sold. The Company sold $2.4 million and $1.3 million of receivables during the three months ended September 26, 2015 and September 27, 2014, respectively, and $5.4 million and $2.9 million of receivables during the nine months ended September 26, 2015 and September 27, 2014 , respectively. There were no material gains or losses on the sale of such receivables. There were no amounts due from such third party financial institutions at September 26, 2015 and December 27, 2014 . |
Financial Statement Components
Financial Statement Components | 9 Months Ended |
Sep. 26, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Financial Statement Components | Financial Statement Components The following tables provide details of selected financial statement components as of the following dates (in thousands): Condensed Consolidated Balance Sheets Details At September 26, December 27, Inventories: Raw materials and sub-assemblies $ 24,999 $ 19,463 Work in process 14,463 7,723 Finished goods 8,936 7,919 Inventories 48,398 35,105 Inventories-delivered systems 1,543 1,912 Total inventories $ 49,941 $ 37,017 Property, plant and equipment, net (1) : Land $ 15,568 $ 15,572 Building and improvements 19,795 19,641 Machinery and equipment 32,085 29,456 Furniture and fixtures 2,264 2,225 Software 8,094 7,942 Capital in progress 2,414 3,512 Total property, plant and equipment, gross 80,220 78,348 Accumulated depreciation and amortization (34,276 ) (28,715 ) Total property, plant and equipment, net $ 45,944 $ 49,633 (1) Total depreciation and amortization expense for the three months ended September 26, 2015 and September 27, 2014 was $1.8 million and $1.7 million, respectively. Total depreciation and amortization expense for the nine months ended September 26, 2015 and September 27, 2014 was $5.2 million and $4.9 million, respectively. Other current liabilities: Accrued warranty $ 4,291 $ 2,953 Accrued restructuring 341 997 Accrued professional services 671 778 Fair value of current portion of contingent payments to Zygo Corporation related to acquisition 1,159 1,385 Other 2,960 2,152 Total other current liabilities $ 9,422 $ 8,265 Components of Accumulated Other Comprehensive Income (Loss) Foreign Defined Unrealized Income (Loss) on Investment Accumulated Balance as of December 27, 2014 $ (2,604 ) $ (134 ) $ (31 ) $ (2,769 ) Current period change (1,980 ) — 42 (1,938 ) Balance as of September 26, 2015 $ (4,584 ) $ (134 ) $ 11 $ (4,707 ) The items above, except for unrealized income (loss) on investment, did not impact the Company’s income tax provision. The amounts reclassified from each component of accumulated other comprehensive income into income statement line items were insignificant. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 26, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The following table summarizes the activity in the Company’s goodwill during the nine months ended September 26, 2015 (in thousands): Balance as of December 27, 2014 $ 10,494 Foreign currency movements (816 ) Balance as of September 26, 2015 $ 9,678 Finite-lived intangible assets are recorded at cost, less accumulated amortization. Finite-lived intangible assets as of September 26, 2015 and December 27, 2014 consisted of the following (in thousands): September 26, 2015 Adjusted cost Accumulated amortization Net carrying amount Developed technology $ 16,299 $ (14,094 ) $ 2,205 Customer relationships 9,388 (9,388 ) — Brand names 1,927 (1,877 ) 50 Patented technology 2,252 (2,104 ) 148 Trademark 80 (80 ) — Total $ 29,946 $ (27,543 ) $ 2,403 December 27, 2014 Adjusted cost Accumulated amortization Net carrying amount Developed technology $ 16,950 $ (12,991 ) $ 3,959 Customer relationships 9,461 (9,449 ) 12 Brand names 1,927 (1,802 ) 125 Patented technology 2,252 (2,054 ) 198 Trademark 80 (80 ) — Total $ 30,670 $ (26,376 ) $ 4,294 The amortization of finite-lived intangibles is computed using the straight-line method. Estimated lives of finite-lived intangibles range from two to ten years. Total amortization expense for the nine months ended September 26, 2015 and September 27, 2014 was $1.6 million and $2.3 million , respectively. There were no impairment charges related to intangible assets recorded during the nine months ended September 26, 2015 and September 27, 2014 . The estimated future amortization expense of finite intangible assets as of September 26, 2015 is as follows (in thousands): Fiscal Years Amounts 2015 (remaining three months) $ 473 2016 1,518 2017 206 2018 140 2019 66 Total future amortization expense $ 2,403 |
Warranties
Warranties | 9 Months Ended |
Sep. 26, 2015 | |
Product Warranties Disclosures [Abstract] | |
Warranties | Warranties The Company sells the majority of its products with a 12 months repair or replacement warranty from the date of acceptance or shipment date. The Company provides an accrual for estimated future warranty costs based upon the historical relationship of warranty costs to the cost of products sold. The estimated future warranty obligations related to product sales are recorded in the period in which the related revenue is recognized. The estimated future warranty obligations are affected by the warranty periods, sales volumes, product failure rates, material usage, and labor and replacement costs incurred in correcting a product failure. If actual product failure rates, material usage, labor or replacement costs were to differ from the Company’s estimates, revisions to the estimated warranty obligations would be required. For new product introductions where limited or no historical information exists, the Company may use warranty information from other previous product introductions to guide it in estimating its warranty accrual. Components of the warranty accrual, which were included in the accompanying condensed consolidated balance sheets with other current liabilities, were as follows (in thousands): Three Months Ended Nine Months Ended September 26, September 27, September 26, September 27, Balance as of beginning of period $ 3,792 $ 3,484 $ 2,953 $ 3,426 Accruals for warranties issued during period 2,288 1,242 6,240 4,459 Settlements during the period (1,789 ) (1,736 ) (4,902 ) (4,895 ) Balance as of end of period $ 4,291 $ 2,990 $ 4,291 $ 2,990 |
Restructuring
Restructuring | 9 Months Ended |
Sep. 26, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring The Company recorded a restructuring charge of approximately $2.3 million in 2014 and $0.1 million during the nine months ended September 26, 2015 , as a result of its decision to consolidate and reorganize certain of its operations, primarily in the U.K. This amount includes charges primarily related to employee severance, other expenses (primarily vendor contract termination costs) and early termination costs of a facility lease due to expire in 2017 in the amounts of $1.1 million , $0.4 million and $0.9 million , respectively. The Company completed this restructuring plan in March 2015, and does not expect any remaining charges related to the decisions made in 2014. Any other related costs will be recognized as incurred. The remaining restructuring reserve will be settled in cash by the end of 2017, upon expiration of the lease. As of September 26, 2015 and September 27, 2014 , respectively, the components of the Company’s restructuring reserves were included in other current liabilities and were as follows (in thousands): Employee severance and benefits Facility termination costs Other Total Balance as of December 27, 2014 $ 383 $ 583 $ 31 $ 997 Charges 45 — 11 56 Cash Payments (428 ) (249 ) (35 ) (712 ) Balance as of September 26, 2015 $ — $ 334 $ 7 $ 341 Employee severance and benefits Facility termination costs Other Total Balance as of December 28, 2013 $ — $ — $ — $ — Charges 560 846 309 1,715 Cash Payments (152 ) — (280 ) (432 ) Balance as of September 27, 2014 $ 408 $ 846 $ 29 $ 1,283 |
Line of Credit and Debt Obligat
Line of Credit and Debt Obligations | 9 Months Ended |
Sep. 26, 2015 | |
Debt Disclosure [Abstract] | |
Line of Credit and Debt Obligations | Line of Credit and Debt Obligations Line of Credit - On May 30, 2014 , the Company amended its revolving line of credit facility (i) to extend the maturity date of such facility by two years to May 30, 2016 , and (ii) to increase the minimum amount available to borrow to $12.0 million . The instrument governing the line of credit facility includes certain financial covenants regarding tangible net worth. The revolving line of credit agreement includes a provision for the issuance of commercial or standby letters of credit by the bank on behalf of the Company. The value of all letters of credit outstanding reduces the total line of credit available. The revolving line of credit is collateralized by a blanket lien on all of the Company’s domestic assets excluding intellectual property and real estate. The minimum borrowing interest rate is 3.00% per annum. Borrowing is limited to the lesser of (a) $12.0 million plus the borrowing base, or (b) $ 20.0 million . The total borrowing base available as of September 26, 2015 was $17.9 million . As of September 26, 2015 , the Company was not in breach of any restrictive covenants in connection with this line of credit. There were no outstanding amounts drawn on this facility as of September 26, 2015 . Although management has no current plans to request advances under this credit facility, the Company may use the proceeds of any future borrowing for general corporate purposes, future acquisitions or expansion of the Company’s business. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 26, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Intellectual Property Indemnification Obligations – The Company will, from time to time, in the normal course of business, agree to indemnify certain customers, vendors or others against third party claims that the Company’s products, when used for their intended purpose(s), or the Company’s intellectual property, infringe the intellectual property rights of such third parties or other claims made against parties with whom it enters into contractual relationships. It is not possible to determine the maximum potential amount of liability under these indemnification obligations due to the limited history of prior indemnification claims and the unique facts and circumstances that are likely to be involved in each particular claim. Historically, the Company has not made payments under these obligations and believes that the estimated fair value of these agreements is immaterial. Accordingly, no liabilities have been recorded for these obligations in the accompanying condensed consolidated balance sheets as of September 26, 2015 and December 27, 2014 . |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 26, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The Company presents both basic and diluted earnings per share on the face of its condensed consolidated statements of operations. Basic net income per share excludes the effect of potentially dilutive shares and is computed by dividing earnings by the weighted-average number of shares of common stock outstanding for the period. Diluted earnings per share is computed using the weighted-average number of shares of common stock outstanding for the period plus the effect of all dilutive securities representing potential shares of common stock outstanding during the period. A reconciliation of the share denominator of the basic and diluted net income per share computations for three and nine months ended September 26, 2015 and September 27, 2014 is as follows (in thousands): Three Months Ended Nine Months Ended September 26, September 27, September 26, September 27, Weighted average common shares outstanding used in basic earnings per share calculation 24,145 24,132 24,010 23,928 Potential dilutive common stock equivalents, using treasury stock method 207 — 337 — Weighted average shares used in diluted earnings per share calculation 24,352 24,132 24,347 23,928 For the three and nine months ended September 27, 2014, potential dilutive common stock equivalents of 0.3 million shares and 0.4 million shares, respectively, were anti-dilutive and, therefore, were excluded from the weighted average share calculation due to the net loss position. |
Stockholders' Equity and Stock-
Stockholders' Equity and Stock-Based Compensation | 9 Months Ended |
Sep. 26, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stockholders' Equity and Stock-Based Compensation | Stockholders’ Equity and Stock-Based Compensation Options and ESPP Awards The fair value of each option award is estimated on the grant date using the Black-Scholes valuation model and the assumptions noted in the following table. The expected lives of options granted were calculated using the simplified method allowed by the SAB 107. The risk-free rates were based on the U.S Treasury rates in effect during the corresponding period of grant. The expected volatility was based on the historical volatility of the Company’s stock price. The dividend yield reflects that the Company has not paid any cash dividends since inception and does not intend to pay any cash dividends in the foreseeable future. Three Months Ended Nine Months Ended September 26, September 27, September 26, September 27, Stock Options: Expected life — — — 4.6 years Volatility — — — 54.9% Risk free interest rate — — — 1.54% Dividends — — — — Employee Stock Purchase Plan: Expected life 0.5 years 0.5 years 0.5 years 0.5 years Volatility 36.7% 29.6% 36.9% 32.6% Risk free interest rate 0.13% 0.06% 0.12% 1.00% Dividends — — — — No stock options were awarded during the nine months ended September 26, 2015 or three months ended September 27, 2014. The weighted average fair value per share of the stock options awarded in the nine months ended September 27, 2014 was $8.13 . A summary of activity of stock options during the nine months ended September 26, 2015 is as follows: Number of Weighted Weighted Aggregate Intrinsic Value (in Thousands) Options Outstanding at December 27, 2014 1,382,993 $ 13.92 3.41 $ 4,108 Exercised (191,037 ) 9.86 Cancelled (72,527 ) 17.22 Outstanding at September 26, 2015 1,119,429 $ 14.40 2.63 $ 925 Exercisable at September 26, 2015 948,053 $ 14.07 2.28 $ 925 The aggregate intrinsic value in the above table represents the total pretax intrinsic value, based on the Company’s closing stock price of $ 12.33 as of September 26, 2015 , the last trading day of the quarter, which would have been received by the option holders had all option holders exercised their options as of that date. The total intrinsic value of options exercised during the three months ended September 26, 2015 and September 27, 2014 was $0.1 million and $0.4 million , respectively, and during the nine months ended September 26, 2015 and September 27, 2014 was $1.4 million and $2.9 million , respectively. Restricted Stock Units (“RSUs”) Time-based RSUs are valued using the market value of the Company’s common stock on the date of grant, assuming no expectation of dividends paid. A summary of activity for RSUs is as follows: RSUs Number Weighted Outstanding RSUs as of December 27, 2014 563,337 $ 17.90 Granted 448,299 15.64 Released (223,143 ) 16.70 Cancelled (59,655 ) 17.10 Outstanding RSUs as of September 26, 2015 728,838 $ 16.02 Market-Based Performance Stock Units (“PSUs”) In March 2015, in addition to granting RSUs that vest on the passage of time only, the Company granted PSUs to an executive. The PSUs will vest in three equal tranches over one , two and three years based on the relative performance of the Company’s stock during those periods, compared to a peer group over the same period. If target stock price performance is achieved, 40,000 shares of the Company’s common stock will vest, and up to a maximum of 60,000 shares will vest if the maximum stock price performance is achieved for each tranche. Valuation of PSUs On the date of grant, the Company estimated the fair value of PSUs using a Monte Carlo simulation model. The assumptions for the valuation of PSUs are summarized as follows: 2015 Award Number of PSUs granted and outstanding as of September 26, 2015 40,000 Grant Date Fair Value Per Share $ 18.35 Weighted-average assumptions/inputs: Expected Dividend — Range of risk-free interest rates 0.25%-1.1% Range of expected volatilities for peer group 23%-65% Stock-based Compensation Expense Stock-based compensation expense for all share-based payment awards made to the Company’s employees and directors pursuant to the employee stock option and employee stock purchase plans by function were as follows (in thousands): Three Months Ended Nine Months Ended September 26, September 27, September 26, September 27, Cost of products $ 96 $ 70 $ 229 $ 199 Cost of service 104 53 195 227 Research and development 300 331 796 967 Selling 511 490 1,403 1,353 General and administrative 671 761 2,041 2,369 Total stock-based compensation expense $ 1,682 $ 1,705 $ 4,664 $ 5,115 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 26, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company accounts for income taxes under the provisions of ASC 740, Accounting for Income Taxes. The Company adjusts its effective tax rate each quarter to be consistent with the estimated annual effective tax rate. The Company also records the tax effect of unusual or infrequently occurring discrete items, including changes in judgment about valuation allowances and effects of changes in tax laws or tax rates, in the interim period in which they occur. The Company's effective tax rate reflects the impact of a portion of its earnings being taxed in foreign jurisdictions as well as a valuation allowance maintained on certain deferred tax assets. The provision for income taxes consists of the following (in thousands): Three Months Ended Nine Months Ended September 26, September 27, September 26, September 27, Provision for income taxes $ 713 $ 17,919 $ 1,847 $ 18,494 The decrease in the tax provision for 2015 from 2014 was primarily related to a one-time charge of $21.1 million related to the establishment of a valuation allowance against the Company’s deferred tax assets during the three and nine months ended September 27, 2014. As of September 26, 2015, the Company continues to maintain a valuation allowance against its U.S. and certain foreign deferred tax assets as a result of uncertainties regarding the realization of the asset due to cumulative losses and uncertainty of future taxable income. The Company will continue to assess the realizability of the deferred tax assets in each of the applicable jurisdictions and maintain the valuation allowances until sufficient positive evidence exists to support a reversal. In the event the Company determines that the deferred tax assets are realizable, an adjustment to the valuation allowance will be reflected in the tax provision for the period such determination is made. The Company is subject to taxation in the U.S. and various states including California, and foreign jurisdictions including Korea, Japan, Taiwan, and China. Due to tax attribute carry-forwards, the Company is subject to examination for tax years 2003 forward for U.S. tax purposes. The Company is also subject to examination in various states for tax years 2002 forward. The Company is subject to examination for tax years 2007 forward for various foreign jurisdictions. The Company accrues interest and penalties related to unrecognized tax benefits in its provision for income taxes. The total amount of penalties and interest were not material as of September 26, 2015 and September 27, 2014. During the next twelve months, the Company anticipates increases in its unrecognized tax benefits of approximately $0.4 million . |
Segment, Geographic, Product an
Segment, Geographic, Product and Significant Customer Information | 9 Months Ended |
Sep. 26, 2015 | |
Segment Reporting [Abstract] | |
Segment, Geographic, Product and Significant Customer Information | Segment, Geographic, Product and Significant Customer Information The Company has one operating segment, which is the sale, design, manufacture, marketing and support of optical critical dimension and thin film systems. The following tables summarize total net revenues and long-lived assets (excluding intangible assets) attributed to significant countries (in thousands): Three Months Ended Nine Months Ended September 26, September 27, September 26, September 27, Total net revenues: United States $ 7,985 5,511 $ 32,115 25,554 South Korea 6,794 6,327 28,807 30,589 Taiwan 11,331 640 35,173 11,337 China 6,731 2,848 12,357 27,694 Japan 7,778 4,099 15,919 10,005 Other 5,059 7,708 20,311 21,559 Total net revenues $ 45,678 $ 27,133 $ 144,682 $ 126,738 Long-lived tangible assets: September 26, December 27, United States $ 44,410 $ 47,729 Taiwan 1,146 1,473 All Other 388 431 Total long-lived tangible assets $ 45,944 $ 49,633 The following customers accounted for 10% or more of total accounts receivable, net: At September 26, December 27, Micron *** 24 % Taiwan Semiconductor Manufacturing Company Limited 28 % 20 % SK Hynix 15 % *** Samsung Electronics Co. Ltd. *** 10 % Global Foundries *** 10 % Toshiba 13 % *** *** The customer accounted for less than 10% of total accounts receivable, net, as of that period end. The following customers accounted for 10% or more of total net revenues: Three Months Ended Nine Months Ended September 26, September 27, September 26, September 27, Micron 14 % 25 % 18 % *** Taiwan Semiconductor Manufacturing Company Limited 17 % *** 19 % *** SK Hynix 15 % 27 % 13 % 16 % Samsung Electronics Co. Ltd. *** *** 16 % 28 % Toshiba 13 % *** *** *** Intel Corporation *** *** *** 14 % *** The customer accounted for less than 10% of total net revenues during the period. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 26, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event In October 2015, the Company executed a restructuring plan to maximize operating efficiencies. The Company anticipates recording a charge related to employee involuntary termination benefits and other related costs of approximately $1.3 million . The Company anticipates completing the restructuring plan by the end of the year. |
Nature of Business and Basis 23
Nature of Business and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 26, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business – Nanometrics Incorporated (“Nanometrics” or the “Company”) and its wholly-owned subsidiaries design, manufacture, market, sell and support optical critical dimension (“OCD”), thin film and overlay dimension metrology and inspection systems used primarily in the manufacturing of semiconductors, solar photovoltaics (“solar PV”) and high-brightness LEDs (“HB-LED”), as well as by customers in the silicon wafer and data storage industries. Nanometrics’ metrology systems precisely measure a wide range of film types deposited on substrates during manufacturing to control manufacturing processes and increase production yields in the fabrication of integrated circuits. The Company’s OCD technology is a patented critical dimension measurement technology that is used to precisely determine the dimensions on the semiconductor wafer that directly control the resulting performance of the integrated circuit devices. The thin film metrology systems use a broad spectrum of wavelengths, high-sensitivity optics, proprietary software, and patented technology to measure the thickness and uniformity of films deposited on silicon and other substrates as well as their chemical composition. The overlay metrology systems are used to measure the overlay accuracy of successive layers of semiconductor patterns on wafers in the photolithography process. Nanometrics’ inspection systems are used to find defects on patterned and unpatterned wafers at nearly every stage of the semiconductor production flow. The corporate headquarters of Nanometrics is located in Milpitas, California. |
Basis of Presentation | Basis of Presentation – The accompanying condensed consolidated financial statements (“financial statements”) have been prepared on a consistent basis with the audited consolidated financial statements as of December 27, 2014, and include all normal recurring adjustments necessary to fairly state the information set forth therein. All significant intercompany accounts and transactions have been eliminated in consolidation. The financial statements have been prepared in accordance with the regulations of the United States Securities and Exchange Commission (“SEC”) for interim periods in accordance with S-X Article 10, and, therefore, omit certain information and footnote disclosure necessary to present the statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The operating results for interim periods are not necessarily indicative of the operating results that may be expected for the entire year. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the fiscal year ended December 27, 2014, which were included in the Company’s Annual Report on Form 10-K filed with the SEC on February 25, 2015. |
Fiscal Period | Fiscal Period – The Company uses a 52/53 week fiscal year ending on the last Saturday of the calendar year. All references to the quarter refer to Nanometrics’ fiscal quarter. The fiscal quarters presented herein consist of 13 weeks. |
Use of Estimates | Use of Estimates – The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ materially from those estimates. Estimates are used for, but not limited to, revenue recognition, the provision for doubtful accounts, the provision for excess, obsolete, or slow moving inventories, valuation of intangible and long-lived assets, warranty accruals, income taxes, valuation of stock-based compensation, and contingencies. |
Revenue Recognition | Revenue Recognition – The Company derives revenue from the sale of process control metrology and inspection systems (“product revenue”) as well as spare part sales, billable service, service contracts, and upgrades (together “service revenue”). Upgrades are a group of parts and/or software that change the existing configuration of a product and are included in service revenue. They are distinguished from product revenue, which consists of complete, advanced process control metrology and inspection systems (the “system(s)”). Nanometrics’ systems consist of hardware and software components that function together to deliver the essential functionality of the system. Arrangements for sales of systems often include defined customer-specified acceptance criteria. In summary, the Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the seller's price is fixed or determinable, and collectability is reasonably assured. For product sales to existing customers, revenue recognition occurs at the time title and risk of loss transfer to the customer, which usually occurs upon shipment from the Company's manufacturing location, if it can be reliably demonstrated that the product has successfully met the defined customer specified acceptance criteria and all other recognition criteria have been met. For initial sales where the product has not previously met the defined customer specified acceptance criteria, product revenues are recognized upon the earlier of receipt of written customer acceptance or expiration of the contractual acceptance period. In Japan, where contractual terms with the customer specify risk of loss and title transfers upon customer acceptance, revenue is recognized upon receipt of written customer acceptance, provided that all other recognition criteria have been met. The Company warrants its products against defects in manufacturing. Upon recognition of product revenue, a liability is recorded for anticipated warranty costs. On occasion, customers request a warranty period longer than the Company's standard warranty. In those instances where extended warranty services are separately quoted to the customer, the associated revenue is deferred and recognized as service revenue ratably over the term of the contract. The portion of service contracts and extended warranty services agreements that are uncompleted at the end of any reporting period are included in deferred revenue. As part of its customer services, the Company sells software that is considered to be an upgrade to a customer's existing systems. These standalone software upgrades are not essential to the tangible product's functionality and are accounted for under software revenue recognition rules which require vendor specific objective evidence (“VSOE”) of fair value to allocate revenue in a multiple element arrangement. Revenue from upgrades is recognized when the upgrades are delivered to the customer, provided that all other recognition criteria have been met. Revenue related to spare parts is recognized upon shipment. Revenue related to billable services is recognized as the services are performed. Service contracts may be purchased by the customer during or after the warranty period and revenue is recognized ratably over the service contract period. Frequently, the Company delivers products and various services in a single transaction. The Company's deliverables consist of tools, installation, upgrades, billable services, spare parts, and service contracts. The Company's typical multi-element arrangements include a sale of one or multiple tools that include installation and standard warranty. Other arrangements consist of a sale of tools bundled with service elements or delivery of different types of services. The Company's tools, upgrades, and spare parts are generally delivered to customers within a period of up to six months from order date. Installation is usually performed soon after delivery of the tool. The portion of revenue associated with installation is deferred based on relative selling price and that revenue is recognized upon completion of the installation. Billable services are billed on a time and materials basis and performed as requested by customers. Under service contract arrangements, services are provided as needed over the fixed arrangement term, which terms can be up to twelve months . The Company does not grant its customers a general right of return or any refund terms and imposes a penalty on orders cancelled prior to the scheduled shipment date. The Company regularly evaluates its revenue arrangements to identify deliverables and to determine whether these deliverables are separable into multiple units of accounting. The Company allocates the arrangement consideration among the deliverables based on relative selling prices. The Company has established VSOE for some of its products and services when a substantial majority of selling prices falls within a narrow range when sold separately. For deliverables with no established VSOE, the Company uses best estimate of selling price to determine standalone selling price for such deliverable. The Company does not use third party evidence to determine standalone selling price since this information is not widely available in the market as the Company's products contain a significant element of proprietary technology and the solutions offered differ substantially from competitors. The Company has established a process for developing estimated selling prices, which incorporates historical selling prices, the effect of market conditions, gross margin objectives, pricing practices, as well as entity-specific factors. The Company monitors and evaluates estimated selling price on a regular basis to ensure that changes in circumstances are accounted for in a timely manner. When certain elements in multiple-element arrangements are not delivered or accepted at the end of a reporting period, the relative selling prices of undelivered elements are deferred until these elements are delivered and/or accepted. If deliverables cannot be accounted for as separate units of accounting, the entire arrangement is accounted for as a single unit of accounting and revenue is deferred until all elements are delivered and all revenue recognition requirements are met. |
Derivatives | Derivatives - The Company enters into forward foreign currency contracts that economically hedge the gains and losses generated by the re-measurement of certain recorded assets and liabilities in a non-functional currency and to offset certain operational exposures from the impact of changes in foreign currency exchange rates. Such exposures result from the portion of the Company’s operations, assets and liabilities that are denominated in currencies other than the U.S. dollar. These foreign currency exchange contracts are entered into to support transactions made in the normal course of business, and accordingly, are not speculative in nature. The contracts are for periods consistent with the terms of the underlying transactions. Changes in the fair value of these undesignated hedges are recognized in other income (expense), net immediately as an offset to the changes in the fair value of the asset or liability being hedged. |
Recently Issued Accounting Pronouncements | In July 2015, the Financial Accounting Standards Board ("FASB") issued an accounting standards update which simplifies the measurement of inventory by requiring inventory to be measured at the lower of cost and net realizable value. The new standard applies only to inventories for which cost is determined by methods other than last-in first-out and the retail inventory method. It is effective for public companies for annual reporting periods beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of this standard to determine if this guidance will have a material impact on its consolidated financial statements. In January 2015, the FASB issued an accounting standard update which simplifies income statement classification by removing the concept of extraordinary items from the U.S. GAAP. As a result, items that are both unusual and infrequent will no longer be separately reported net of tax after continuing operations. The new standard is effective for the fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The Company does not expect any impact on the adoption of this standard on its consolidated financial statements. In May 2014, the FASB issued an accounting standards update which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. In July 2015, the FASB deferred for one year the effective date of the new revenue standard, but early adoption will be permitted. The new standard will be effective for the Company on January 1, 2018. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that the standard will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. In July 2013, the FASB issued an accounting standards update which provides that a liability related to an unrecognized tax benefit would be offset against a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. In situations in which a net operating loss carryforward, a similar tax loss or a tax credit carryforward is not available at the reporting date under the tax law of the jurisdiction or the tax law of the jurisdiction does not require, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit will be presented in the financial statements as a liability and will not be combined with deferred tax assets. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. The new standard is effective for fiscal years and interim periods beginning after December 15, 2013. The Company adopted this standard during the three months ended March 29, 2014, resulting in a one-time tax benefit of $0.3 million , a reduction in deferred tax assets of $0.3 million , and a reduction in long-term income taxes payable of $0.6 million . |
Fair Value Measurements and D24
Fair Value Measurements and Disclosures, and Financial Instruments (Tables) | 9 Months Ended |
Sep. 26, 2015 | |
Fair Value Disclosures [Abstract] | |
Assets and liabilities measurements at estimated fair value on recurring basis excluding accrued interest components | The following tables present the Company’s assets and liabilities measured at estimated fair value on a recurring basis, excluding accrued interest components, categorized in accordance with the fair value hierarchy (in thousands), as of the following dates: September 26, 2015 December 27, 2014 Fair Value Measurements Using Input Types Fair Value Measurements Using Input Types Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 642 $ — $ — $ 642 $ 610 $ — $ — $ 610 Commercial paper — 6,434 — 6,434 — — — — Total cash equivalents 642 6,434 — 7,076 610 — — 610 Marketable securities: U.S. Treasury, U.S. Government and U.S. Government agency debt securities — 21,684 — 21,684 2,497 20,537 — 23,034 Commercial paper, municipal securities and corporate debt securities — 21,381 — 21,381 — 26,252 — 26,252 Total marketable securities — 43,065 — 43,065 2,497 46,789 — 49,286 Total (1) $ 642 $ 49,499 $ — $ 50,141 $ 3,107 $ 46,789 $ — $ 49,896 Liabilities: Contingent consideration payable $ — $ — $ 1,920 $ 1,920 $ — $ — $ 2,397 $ 2,397 (1) Excludes $34.5 million and $34.1 million held in operating accounts as of September 26, 2015 and December 27, 2014 , respectively. |
Fair value measurement on recurring basis, unobservable input reconciliation | Changes in Level 3 liabilities (in thousands) Fair value at December 27, 2014 $ 2,397 Payments made to Zygo Corporation (614 ) Change in fair value included in earnings 137 Fair value at September 26, 2015 $ 1,920 |
Outstanding derivative instruments | The following table summarizes the Company’s outstanding derivative instruments on a gross basis as of September 26, 2015 : Notional Principal (in millions) Undesignated Hedges: Forward Foreign Currency Contracts $ 25.1 |
Cash and Investments (Tables)
Cash and Investments (Tables) | 9 Months Ended |
Sep. 26, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Cash, cash equivalents and available-for-sale investments | The following tables present cash, cash equivalents, and available-for-sale investments as of the following dates (in thousands): September 26, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Market Value Cash $ 34,485 $ — $ — $ 34,485 Cash equivalents: Money market funds 642 — — 642 Commercial paper 6,434 — — 6,434 Marketable securities: Commercial paper 1,498 — — 1,498 U.S. Government agency securities 21,668 17 (1 ) 21,684 Municipal securities 3,714 5 (1 ) 3,718 Corporate debt securities 16,168 3 (6 ) 16,165 Total cash, cash equivalents, and marketable securities $ 84,609 $ 25 $ (8 ) $ 84,626 December 27, 2014 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Market Value Cash $ 34,066 $ — $ — $ 34,066 Cash equivalents: Money market funds 610 — — 610 Marketable securities: Commercial paper 805 — — 805 U.S. Treasury Securities 2,498 — (1 ) 2,497 U.S. Government agency securities 20,556 1 (19 ) 20,538 Municipal securities 3,755 1 (7 ) 3,749 Corporate debt securities 21,722 1 (26 ) 21,697 Total cash, cash equivalents, and marketable securities $ 84,012 $ 3 $ (53 ) $ 83,962 |
Financial Statement Components
Financial Statement Components (Tables) | 9 Months Ended |
Sep. 26, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Components of condensed consolidated balance sheets | Condensed Consolidated Balance Sheets Details At September 26, December 27, Inventories: Raw materials and sub-assemblies $ 24,999 $ 19,463 Work in process 14,463 7,723 Finished goods 8,936 7,919 Inventories 48,398 35,105 Inventories-delivered systems 1,543 1,912 Total inventories $ 49,941 $ 37,017 Property, plant and equipment, net (1) : Land $ 15,568 $ 15,572 Building and improvements 19,795 19,641 Machinery and equipment 32,085 29,456 Furniture and fixtures 2,264 2,225 Software 8,094 7,942 Capital in progress 2,414 3,512 Total property, plant and equipment, gross 80,220 78,348 Accumulated depreciation and amortization (34,276 ) (28,715 ) Total property, plant and equipment, net $ 45,944 $ 49,633 (1) Total depreciation and amortization expense for the three months ended September 26, 2015 and September 27, 2014 was $1.8 million and $1.7 million, respectively. Total depreciation and amortization expense for the nine months ended September 26, 2015 and September 27, 2014 was $5.2 million and $4.9 million, respectively. Other current liabilities: Accrued warranty $ 4,291 $ 2,953 Accrued restructuring 341 997 Accrued professional services 671 778 Fair value of current portion of contingent payments to Zygo Corporation related to acquisition 1,159 1,385 Other 2,960 2,152 Total other current liabilities $ 9,422 $ 8,265 |
Components of accumulated other comprehensive income (loss) | Components of Accumulated Other Comprehensive Income (Loss) Foreign Defined Unrealized Income (Loss) on Investment Accumulated Balance as of December 27, 2014 $ (2,604 ) $ (134 ) $ (31 ) $ (2,769 ) Current period change (1,980 ) — 42 (1,938 ) Balance as of September 26, 2015 $ (4,584 ) $ (134 ) $ 11 $ (4,707 ) |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 26, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The following table summarizes the activity in the Company’s goodwill during the nine months ended September 26, 2015 (in thousands): Balance as of December 27, 2014 $ 10,494 Foreign currency movements (816 ) Balance as of September 26, 2015 $ 9,678 |
Summary of finite-lived intangible assets | Finite-lived intangible assets as of September 26, 2015 and December 27, 2014 consisted of the following (in thousands): September 26, 2015 Adjusted cost Accumulated amortization Net carrying amount Developed technology $ 16,299 $ (14,094 ) $ 2,205 Customer relationships 9,388 (9,388 ) — Brand names 1,927 (1,877 ) 50 Patented technology 2,252 (2,104 ) 148 Trademark 80 (80 ) — Total $ 29,946 $ (27,543 ) $ 2,403 December 27, 2014 Adjusted cost Accumulated amortization Net carrying amount Developed technology $ 16,950 $ (12,991 ) $ 3,959 Customer relationships 9,461 (9,449 ) 12 Brand names 1,927 (1,802 ) 125 Patented technology 2,252 (2,054 ) 198 Trademark 80 (80 ) — Total $ 30,670 $ (26,376 ) $ 4,294 |
Estimated future amortization expense | The estimated future amortization expense of finite intangible assets as of September 26, 2015 is as follows (in thousands): Fiscal Years Amounts 2015 (remaining three months) $ 473 2016 1,518 2017 206 2018 140 2019 66 Total future amortization expense $ 2,403 |
Warranties (Tables)
Warranties (Tables) | 9 Months Ended |
Sep. 26, 2015 | |
Product Warranties Disclosures [Abstract] | |
Components of the warranty accrual | Components of the warranty accrual, which were included in the accompanying condensed consolidated balance sheets with other current liabilities, were as follows (in thousands): Three Months Ended Nine Months Ended September 26, September 27, September 26, September 27, Balance as of beginning of period $ 3,792 $ 3,484 $ 2,953 $ 3,426 Accruals for warranties issued during period 2,288 1,242 6,240 4,459 Settlements during the period (1,789 ) (1,736 ) (4,902 ) (4,895 ) Balance as of end of period $ 4,291 $ 2,990 $ 4,291 $ 2,990 |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Sep. 26, 2015 | |
Restructuring and Related Activities [Abstract] | |
Components of the restructuring reserve | As of September 26, 2015 and September 27, 2014 , respectively, the components of the Company’s restructuring reserves were included in other current liabilities and were as follows (in thousands): Employee severance and benefits Facility termination costs Other Total Balance as of December 27, 2014 $ 383 $ 583 $ 31 $ 997 Charges 45 — 11 56 Cash Payments (428 ) (249 ) (35 ) (712 ) Balance as of September 26, 2015 $ — $ 334 $ 7 $ 341 Employee severance and benefits Facility termination costs Other Total Balance as of December 28, 2013 $ — $ — $ — $ — Charges 560 846 309 1,715 Cash Payments (152 ) — (280 ) (432 ) Balance as of September 27, 2014 $ 408 $ 846 $ 29 $ 1,283 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 26, 2015 | |
Earnings Per Share [Abstract] | |
Reconciliation of the basic and diluted net income per share computations | A reconciliation of the share denominator of the basic and diluted net income per share computations for three and nine months ended September 26, 2015 and September 27, 2014 is as follows (in thousands): Three Months Ended Nine Months Ended September 26, September 27, September 26, September 27, Weighted average common shares outstanding used in basic earnings per share calculation 24,145 24,132 24,010 23,928 Potential dilutive common stock equivalents, using treasury stock method 207 — 337 — Weighted average shares used in diluted earnings per share calculation 24,352 24,132 24,347 23,928 |
Stockholders' Equity and Stoc31
Stockholders' Equity and Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 26, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock options valuation assumptions | Three Months Ended Nine Months Ended September 26, September 27, September 26, September 27, Stock Options: Expected life — — — 4.6 years Volatility — — — 54.9% Risk free interest rate — — — 1.54% Dividends — — — — Employee Stock Purchase Plan: Expected life 0.5 years 0.5 years 0.5 years 0.5 years Volatility 36.7% 29.6% 36.9% 32.6% Risk free interest rate 0.13% 0.06% 0.12% 1.00% Dividends — — — — |
Employee stock purchase plan valuation assumptions | Three Months Ended Nine Months Ended September 26, September 27, September 26, September 27, Stock Options: Expected life — — — 4.6 years Volatility — — — 54.9% Risk free interest rate — — — 1.54% Dividends — — — — Employee Stock Purchase Plan: Expected life 0.5 years 0.5 years 0.5 years 0.5 years Volatility 36.7% 29.6% 36.9% 32.6% Risk free interest rate 0.13% 0.06% 0.12% 1.00% Dividends — — — — |
Stock option plans activity | A summary of activity of stock options during the nine months ended September 26, 2015 is as follows: Number of Weighted Weighted Aggregate Intrinsic Value (in Thousands) Options Outstanding at December 27, 2014 1,382,993 $ 13.92 3.41 $ 4,108 Exercised (191,037 ) 9.86 Cancelled (72,527 ) 17.22 Outstanding at September 26, 2015 1,119,429 $ 14.40 2.63 $ 925 Exercisable at September 26, 2015 948,053 $ 14.07 2.28 $ 925 |
Summary of activity for RSUs | A summary of activity for RSUs is as follows: RSUs Number Weighted Outstanding RSUs as of December 27, 2014 563,337 $ 17.90 Granted 448,299 15.64 Released (223,143 ) 16.70 Cancelled (59,655 ) 17.10 Outstanding RSUs as of September 26, 2015 728,838 $ 16.02 |
PSUs valuation assumptions | The assumptions for the valuation of PSUs are summarized as follows: 2015 Award Number of PSUs granted and outstanding as of September 26, 2015 40,000 Grant Date Fair Value Per Share $ 18.35 Weighted-average assumptions/inputs: Expected Dividend — Range of risk-free interest rates 0.25%-1.1% Range of expected volatilities for peer group 23%-65% |
Stock-based compensation expense for all share-based payment awards | Stock-based compensation expense for all share-based payment awards made to the Company’s employees and directors pursuant to the employee stock option and employee stock purchase plans by function were as follows (in thousands): Three Months Ended Nine Months Ended September 26, September 27, September 26, September 27, Cost of products $ 96 $ 70 $ 229 $ 199 Cost of service 104 53 195 227 Research and development 300 331 796 967 Selling 511 490 1,403 1,353 General and administrative 671 761 2,041 2,369 Total stock-based compensation expense $ 1,682 $ 1,705 $ 4,664 $ 5,115 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 26, 2015 | |
Income Tax Disclosure [Abstract] | |
Provision for income taxes | The provision for income taxes consists of the following (in thousands): Three Months Ended Nine Months Ended September 26, September 27, September 26, September 27, Provision for income taxes $ 713 $ 17,919 $ 1,847 $ 18,494 |
Segment, Geographic, Product 33
Segment, Geographic, Product and Significant Customer Information (Tables) | 9 Months Ended |
Sep. 26, 2015 | |
Segment Reporting [Abstract] | |
Total net revenue | Three Months Ended Nine Months Ended September 26, September 27, September 26, September 27, Total net revenues: United States $ 7,985 5,511 $ 32,115 25,554 South Korea 6,794 6,327 28,807 30,589 Taiwan 11,331 640 35,173 11,337 China 6,731 2,848 12,357 27,694 Japan 7,778 4,099 15,919 10,005 Other 5,059 7,708 20,311 21,559 Total net revenues $ 45,678 $ 27,133 $ 144,682 $ 126,738 |
Long-lived tangible assets | Long-lived tangible assets: September 26, December 27, United States $ 44,410 $ 47,729 Taiwan 1,146 1,473 All Other 388 431 Total long-lived tangible assets $ 45,944 $ 49,633 |
Customers accounted for 10% or more of total accounts receivable | The following customers accounted for 10% or more of total accounts receivable, net: At September 26, December 27, Micron *** 24 % Taiwan Semiconductor Manufacturing Company Limited 28 % 20 % SK Hynix 15 % *** Samsung Electronics Co. Ltd. *** 10 % Global Foundries *** 10 % Toshiba 13 % *** *** The customer accounted for less than 10% of total accounts receivable, net, as of that period end. |
Customers accounted for 10% or more of total revenue | The following customers accounted for 10% or more of total net revenues: Three Months Ended Nine Months Ended September 26, September 27, September 26, September 27, Micron 14 % 25 % 18 % *** Taiwan Semiconductor Manufacturing Company Limited 17 % *** 19 % *** SK Hynix 15 % 27 % 13 % 16 % Samsung Electronics Co. Ltd. *** *** 16 % 28 % Toshiba 13 % *** *** *** Intel Corporation *** *** *** 14 % *** The customer accounted for less than 10% of total net revenues during the period. |
Nature of Business and Basis 34
Nature of Business and Basis of Presentation - Textual (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 26, 2015 | Sep. 27, 2014 | Sep. 26, 2015 | Sep. 27, 2014 | Dec. 27, 2014 | |
Accounting Policies [Line Items] | |||||
Increase in revenue | $ 45,678 | $ 27,133 | $ 144,682 | $ 126,738 | |
Increase in accounts receivable, net | 37,573 | $ 37,573 | $ 26,121 | ||
Fiscal year/fiscal quarter duration | 91 days | 91 days | |||
Maximum period of delivery to customers | 6 months | ||||
Maximum period services are provided over the fixed arrangement term | 12 months | ||||
Minimum [Member] | |||||
Accounting Policies [Line Items] | |||||
Fiscal year/fiscal quarter duration | 364 days | ||||
Maximum [Member] | |||||
Accounting Policies [Line Items] | |||||
Fiscal year/fiscal quarter duration | 371 days | ||||
Prior Period Adjustment [Member] | Restatement Adjustment [Member] | |||||
Accounting Policies [Line Items] | |||||
Increase in revenue | 300 | ||||
Increase in accounts receivable, net | $ 300 | $ 300 |
Recent Accounting Pronounceme35
Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 26, 2015 | Sep. 27, 2014 | Mar. 29, 2014 | Sep. 26, 2015 | Sep. 27, 2014 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Income tax expense (benefit) | $ 713 | $ 17,919 | $ 1,847 | $ 18,494 | |
Increase (decrease) in long-term income taxes payable | $ 295 | $ (3,158) | |||
Adjustments for New Accounting Pronouncement [Member] | Restatement Adjustment [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Income tax expense (benefit) | $ (300) | ||||
Increase (decrease) in deferred tax assets | (300) | ||||
Increase (decrease) in long-term income taxes payable | $ (600) |
Fair Value Measurements and D36
Fair Value Measurements and Disclosures, and Financial Instruments - Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 26, 2015 | Dec. 27, 2014 |
Assets: | ||
Total marketable securities | $ 84,626 | $ 83,962 |
Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Total cash equivalents | 7,076 | 610 |
Total marketable securities | 43,065 | 49,286 |
Total | 50,141 | 49,896 |
Liabilities: | ||
Contingent consideration payable | 1,920 | 2,397 |
Fair Value, Measurements, Recurring [Member] | Money market funds [Member] | ||
Assets: | ||
Total cash equivalents | 642 | 610 |
Fair Value, Measurements, Recurring [Member] | Commercial paper [Member] | ||
Assets: | ||
Total cash equivalents | 6,434 | 0 |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury, U.S. Government and U.S. Government agency debt securities [Member] | ||
Assets: | ||
Total marketable securities | 21,684 | 23,034 |
Fair Value, Measurements, Recurring [Member] | Commercial paper, municipal securities and corporate debt securities [Member] | ||
Assets: | ||
Total marketable securities | 21,381 | 26,252 |
Fair Value, Measurements, Recurring [Member] | Cash [Member] | ||
Assets: | ||
Total cash equivalents | 34,500 | 34,100 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||
Assets: | ||
Total cash equivalents | 642 | 610 |
Total marketable securities | 0 | 2,497 |
Total | 642 | 3,107 |
Liabilities: | ||
Contingent consideration payable | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Money market funds [Member] | ||
Assets: | ||
Total cash equivalents | 642 | 610 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Commercial paper [Member] | ||
Assets: | ||
Total cash equivalents | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | U.S. Treasury, U.S. Government and U.S. Government agency debt securities [Member] | ||
Assets: | ||
Total marketable securities | 0 | 2,497 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Commercial paper, municipal securities and corporate debt securities [Member] | ||
Assets: | ||
Total marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Assets: | ||
Total cash equivalents | 6,434 | 0 |
Total marketable securities | 43,065 | 46,789 |
Total | 49,499 | 46,789 |
Liabilities: | ||
Contingent consideration payable | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Money market funds [Member] | ||
Assets: | ||
Total cash equivalents | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Commercial paper [Member] | ||
Assets: | ||
Total cash equivalents | 6,434 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | U.S. Treasury, U.S. Government and U.S. Government agency debt securities [Member] | ||
Assets: | ||
Total marketable securities | 21,684 | 20,537 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Commercial paper, municipal securities and corporate debt securities [Member] | ||
Assets: | ||
Total marketable securities | 21,381 | 26,252 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ||
Assets: | ||
Total cash equivalents | 0 | 0 |
Total marketable securities | 0 | 0 |
Total | 0 | 0 |
Liabilities: | ||
Contingent consideration payable | 1,920 | 2,397 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Money market funds [Member] | ||
Assets: | ||
Total cash equivalents | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Commercial paper [Member] | ||
Assets: | ||
Total cash equivalents | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | U.S. Treasury, U.S. Government and U.S. Government agency debt securities [Member] | ||
Assets: | ||
Total marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Commercial paper, municipal securities and corporate debt securities [Member] | ||
Assets: | ||
Total marketable securities | $ 0 | $ 0 |
Fair Value Measurements and D37
Fair Value Measurements and Disclosures, and Financial Instruments - Unobservable Input Reconciliation (Details) - Level 3 [Member] $ in Thousands | 9 Months Ended |
Sep. 26, 2015USD ($) | |
Fair value measurement on recurring basis, unobservable input reconciliation [Roll Forward] | |
Fair value, beginning balance | $ 2,397 |
Change in fair value included in earnings | 137 |
Fair Value, ending balance | 1,920 |
Zygo Corporation [Member] | |
Fair value measurement on recurring basis, unobservable input reconciliation [Roll Forward] | |
Payments made to Zygo Corporation | $ (614) |
Fair Value Measurements and D38
Fair Value Measurements and Disclosures, and Financial Instruments - Outstanding Derivative Instruments (Details) $ in Millions | Sep. 26, 2015USD ($) |
Not Designated as Hedging Instrument [Member] | Forward Foreign Currency Contracts [Member] | |
Derivatives, Fair Value [Line Items] | |
Notional Principal | $ 25.1 |
Fair Value Measurements and D39
Fair Value Measurements and Disclosures, and Financial Instruments - Textual (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 26, 2015 | Sep. 26, 2015 | Dec. 27, 2014 | |
Forward Foreign Currency Contracts [Member] | |||
Fair Value Measurements and Disclosures (Textual) [Abstract] | |||
Derivative term | 30 days | ||
Forward Foreign Currency Contracts [Member] | Other Income (Expense), Net [Member] | |||
Fair Value Measurements and Disclosures (Textual) [Abstract] | |||
Gain (loss) on settlement of derivatives | $ (0.3) | $ (0.3) | |
Fair Value, Measurements, Recurring [Member] | Zygo Corporation [Member] | |||
Fair Value Measurements and Disclosures (Textual) [Abstract] | |||
Liabilities resulting from the acquisition of certain assets from acquisitions, measured at fair value | 1.9 | 1.9 | $ 2.4 |
Current liability at fair value | 1.2 | 1.2 | 1.4 |
Long-term liability at fair value | $ 0.7 | $ 0.7 | $ 1 |
Cash and Investments (Details)
Cash and Investments (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 26, 2015 | Dec. 27, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 84,609 | $ 84,012 |
Gross Unrealized Gains | 25 | 3 |
Gross Unrealized Losses | (8) | (53) |
Estimated Fair Market Value | $ 84,626 | $ 83,962 |
Investment maturity period, less than | 2 years | 2 years |
Cash [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 34,485 | $ 34,066 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Market Value | 34,485 | 34,066 |
Money market funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 642 | 610 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Market Value | 642 | 610 |
Commercial paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 6,434 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Estimated Fair Market Value | 6,434 | |
Commercial paper, not included in cash equivalents [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,498 | 805 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Market Value | 1,498 | 805 |
U.S. Treasury securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,498 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (1) | |
Estimated Fair Market Value | 2,497 | |
U.S. Government agency securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 21,668 | 20,556 |
Gross Unrealized Gains | 17 | 1 |
Gross Unrealized Losses | (1) | (19) |
Estimated Fair Market Value | 21,684 | 20,538 |
Municipal securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 3,714 | 3,755 |
Gross Unrealized Gains | 5 | 1 |
Gross Unrealized Losses | (1) | (7) |
Estimated Fair Market Value | 3,718 | 3,749 |
Corporate debt securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 16,168 | 21,722 |
Gross Unrealized Gains | 3 | 1 |
Gross Unrealized Losses | (6) | (26) |
Estimated Fair Market Value | $ 16,165 | $ 21,697 |
Accounts Receivable - Textual (
Accounts Receivable - Textual (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 26, 2015 | Sep. 27, 2014 | Sep. 26, 2015 | Sep. 27, 2014 | Dec. 27, 2014 | |
Accounts Receivable (Additional Textual) [Abstract] | |||||
Sold receivables amount | $ 2,400,000 | $ 1,300,000 | $ 5,400,000 | $ 2,900,000 | |
Due from unrelated third parties | $ 0 | $ 0 | $ 0 | ||
Minimum [Member] | |||||
Accounts Receivable (Textual) [Abstract] | |||||
Administrative fees as well as interest percent | 1.15% | ||||
Maximum [Member] | |||||
Accounts Receivable (Textual) [Abstract] | |||||
Administrative fees as well as interest percent | 1.68% |
Financial Statement Component42
Financial Statement Components - Selected Financial Statement Components (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 26, 2015 | Sep. 27, 2014 | Sep. 26, 2015 | Sep. 27, 2014 | Dec. 27, 2014 | |
Inventories: | |||||
Raw materials and sub-assemblies | $ 24,999 | $ 24,999 | $ 19,463 | ||
Work in process | 14,463 | 14,463 | 7,723 | ||
Finished goods | 8,936 | 8,936 | 7,919 | ||
Inventories | 48,398 | 48,398 | 35,105 | ||
Inventories-delivered systems | 1,543 | 1,543 | 1,912 | ||
Total inventories | 49,941 | 49,941 | 37,017 | ||
Property, Plant and Equipment [Line Items] | |||||
Total property, plant and equipment, gross | 80,220 | 80,220 | 78,348 | ||
Accumulated depreciation and amortization | (34,276) | (34,276) | (28,715) | ||
Total property, plant and equipment, net | 45,944 | 45,944 | 49,633 | ||
Depreciation and amortization expense | 1,800 | $ 1,700 | 5,200 | $ 4,900 | |
Accrued warranty | 4,291 | 4,291 | 2,953 | ||
Accrued restructuring | 341 | 341 | 997 | ||
Accrued professional services | 671 | 671 | 778 | ||
Fair value of current portion of contingent payments to Zygo Corporation related to acquisition | 1,159 | 1,159 | 1,385 | ||
Other | 2,960 | 2,960 | 2,152 | ||
Total other current liabilities | 9,422 | 9,422 | 8,265 | ||
Land [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Total property, plant and equipment, gross | 15,568 | 15,568 | 15,572 | ||
Building and improvements [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Total property, plant and equipment, gross | 19,795 | 19,795 | 19,641 | ||
Machinery and equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Total property, plant and equipment, gross | 32,085 | 32,085 | 29,456 | ||
Furniture and fixtures [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Total property, plant and equipment, gross | 2,264 | 2,264 | 2,225 | ||
Software [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Total property, plant and equipment, gross | 8,094 | 8,094 | 7,942 | ||
Capital in progress [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Total property, plant and equipment, gross | $ 2,414 | $ 2,414 | $ 3,512 |
Financial Statement Component43
Financial Statement Components - Components of Accumulated Other Comprehensive Income (Loss) (Details) $ in Thousands | 9 Months Ended |
Sep. 26, 2015USD ($) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning of period | $ (2,769) |
Current period change | (1,938) |
End of period | (4,707) |
Foreign Currency Translations [Member] | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning of period | (2,604) |
Current period change | (1,980) |
End of period | (4,584) |
Defined Benefit Pension Plans [Member] | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning of period | (134) |
Current period change | 0 |
End of period | (134) |
Unrealized Income (Loss) on Investment [Member] | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning of period | (31) |
Current period change | 42 |
End of period | $ 11 |
Goodwill and Intangible Asset44
Goodwill and Intangible Assets - Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 26, 2015USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 10,494 |
Foreign currency movements | (816) |
Ending balance | $ 9,678 |
Goodwill and Intangible Asset45
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 26, 2015 | Dec. 27, 2014 |
Summary of Finite-lived intangible assets | ||
Adjusted cost | $ 29,946 | $ 30,670 |
Accumulated amortization | (27,543) | (26,376) |
Net carrying amount | 2,403 | 4,294 |
Developed technology [Member] | ||
Summary of Finite-lived intangible assets | ||
Adjusted cost | 16,299 | 16,950 |
Accumulated amortization | (14,094) | (12,991) |
Net carrying amount | 2,205 | 3,959 |
Customer relationships [Member] | ||
Summary of Finite-lived intangible assets | ||
Adjusted cost | 9,388 | 9,461 |
Accumulated amortization | (9,388) | (9,449) |
Net carrying amount | 0 | 12 |
Brand names [Member] | ||
Summary of Finite-lived intangible assets | ||
Adjusted cost | 1,927 | 1,927 |
Accumulated amortization | (1,877) | (1,802) |
Net carrying amount | 50 | 125 |
Patented technology [Member] | ||
Summary of Finite-lived intangible assets | ||
Adjusted cost | 2,252 | 2,252 |
Accumulated amortization | (2,104) | (2,054) |
Net carrying amount | 148 | 198 |
Trademark [Member] | ||
Summary of Finite-lived intangible assets | ||
Adjusted cost | 80 | 80 |
Accumulated amortization | (80) | (80) |
Net carrying amount | $ 0 | $ 0 |
Goodwill and Intangible Asset46
Goodwill and Intangible Assets - Future Amortization (Details) $ in Thousands | Sep. 26, 2015USD ($) |
Estimated future amortization expense | |
2015 (remaining three months) | $ 473 |
2,016 | 1,518 |
2,017 | 206 |
2,018 | 140 |
2,019 | 66 |
Total future amortization expense | $ 2,403 |
Goodwill and Intangible Asset47
Goodwill and Intangible Assets - Textual (Details) - USD ($) | 9 Months Ended | |
Sep. 26, 2015 | Sep. 27, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||
Total amortization expense | $ 1,600,000 | $ 2,300,000 |
Impairment charges | $ 0 | $ 0 |
Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangibles estimated lives | 2 years | |
Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangibles estimated lives | 10 years |
Warranties (Details)
Warranties (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2015 | Sep. 27, 2014 | Sep. 26, 2015 | Sep. 27, 2014 | |
Components of the warranty accrual [Roll Forward] | ||||
Balance as of beginning of period | $ 3,792 | $ 3,484 | $ 2,953 | $ 3,426 |
Accruals for warranties issued during period | 2,288 | 1,242 | 6,240 | 4,459 |
Settlements during the period | (1,789) | (1,736) | (4,902) | (4,895) |
Balance as of end of period | $ 4,291 | $ 2,990 | $ 4,291 | $ 2,990 |
Warranties - Textual (Details)
Warranties - Textual (Details) | 9 Months Ended |
Sep. 26, 2015 | |
Product Warranties Disclosures [Abstract] | |
Product warranty period | 12 months |
Restructuring - Textual (Detail
Restructuring - Textual (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | 21 Months Ended | ||
Sep. 26, 2015 | Sep. 27, 2014 | Sep. 26, 2015 | Sep. 27, 2014 | Dec. 27, 2014 | Sep. 26, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charge | $ 0 | $ 1,715 | $ 56 | $ 1,715 | $ 2,300 | |
Employee severance and benefits [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charge | 45 | 560 | $ 1,100 | |||
Other [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charge | 11 | 309 | 400 | |||
Facility termination costs [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charge | $ 0 | $ 846 | $ 900 |
Restructuring (Details)
Restructuring (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | 21 Months Ended | ||
Sep. 26, 2015 | Sep. 27, 2014 | Sep. 26, 2015 | Sep. 27, 2014 | Dec. 27, 2014 | Sep. 26, 2015 | |
Restructuring Reserve [Roll Forward] | ||||||
Beginning Balance | $ 997 | $ 0 | $ 0 | $ 0 | ||
Charges | $ 0 | $ 1,715 | 56 | 1,715 | 2,300 | |
Cash Payments | (712) | (432) | ||||
Ending Balance | 341 | 1,283 | 341 | 1,283 | 997 | 341 |
Employee severance and benefits [Member] | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning Balance | 383 | 0 | 0 | 0 | ||
Charges | 45 | 560 | 1,100 | |||
Cash Payments | (428) | (152) | ||||
Ending Balance | 0 | 408 | 0 | 408 | 383 | 0 |
Facility termination costs [Member] | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning Balance | 583 | 0 | 0 | 0 | ||
Charges | 0 | 846 | 900 | |||
Cash Payments | (249) | 0 | ||||
Ending Balance | 334 | 846 | 334 | 846 | 583 | 334 |
Other [Member] | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning Balance | 31 | 0 | 0 | 0 | ||
Charges | 11 | 309 | 400 | |||
Cash Payments | (35) | (280) | ||||
Ending Balance | $ 7 | $ 29 | $ 7 | $ 29 | $ 31 | $ 7 |
Line of Credit and Debt Oblig52
Line of Credit and Debt Obligations - Textual (Details) - USD ($) | May. 30, 2014 | Sep. 26, 2015 |
Line of Credit and Debt Obligations (Textual) [Abstract] | ||
Maturity date | May 30, 2016 | |
Amount available to borrow | $ 12,000,000 | |
Borrowing interest rate, minimum | 3.00% | |
Borrowing, minimum of lesser amount, before addition of borrowing base | $ 12,000,000 | |
Borrowing, maximum of lesser amount | $ 20,000,000 | |
Total borrowing available | $ 17,900,000 | |
Revolving line of credit facility [Member] | ||
Line of Credit and Debt Obligations (Textual) [Abstract] | ||
Extension of maturity period on amendment of existing credit facility | 2 years | |
Revolving line of credit facility [Member] | Line of Credit [Member] | ||
Line of Credit and Debt Obligations (Textual) [Abstract] | ||
Amount outstanding | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Textual (Details) - USD ($) | Sep. 26, 2015 | Dec. 27, 2014 |
Commitments and Contingencies Disclosure [Abstract] | ||
Liabilities recorded for obligations | $ 0 | $ 0 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2015 | Sep. 27, 2014 | Sep. 26, 2015 | Sep. 27, 2014 | |
Reconciliation of the basic and diluted net income per share computations | ||||
Weighted average common shares outstanding used in basic earnings per share calculation | 24,145 | 24,132 | 24,010 | 23,928 |
Potential dilutive common stock equivalents, using treasury stock method | 207 | 0 | 337 | 0 |
Weighted average shares used in diluted earnings per share calculation | 24,352 | 24,132 | 24,347 | 23,928 |
Anti-dilutive common stock equivalents excluded from calculation | 300 | 400 |
Stockholders' Equity and Stoc55
Stockholders' Equity and Stock-Based Compensation - Textual (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2015 | Sep. 26, 2015 | Sep. 27, 2014 | Sep. 26, 2015 | Sep. 27, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options awarded (in shares) | 0 | ||||
Weighted average fair value per share of stock options (in dollars per share) | $ 8.13 | ||||
Closing stock price (in dollars per share) | $ 12.33 | $ 12.33 | |||
Intrinsic value of options exercised | $ 0.1 | $ 0.4 | $ 1.4 | $ 2.9 | |
Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expected dividends | 0.00% | ||||
Performance-Based Restricted Stock Units (PSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expected dividends | 0.00% | ||||
Number of shares that will vest if target stock price performance is achieved | 40,000 | ||||
Number of shares that will vest if maximum stock price performance is achieved | 60,000 | ||||
Performance-Based Restricted Stock Units (PSUs) [Member] | Tranche One [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 1 year | ||||
Performance-Based Restricted Stock Units (PSUs) [Member] | Tranche Two [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 2 years | ||||
Performance-Based Restricted Stock Units (PSUs) [Member] | Tranche Three [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years |
Stockholders' Equity and Stoc56
Stockholders' Equity and Stock-Based Compensation - Stock Options and Employee Stock Purchase Plan Valuation Assumptions (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2015 | Sep. 27, 2014 | Sep. 26, 2015 | Sep. 27, 2014 | |
Stock Options [Member] | ||||
Assumption of stock option's fair value | ||||
Expected life | 4 years 7 months 6 days | |||
Volatility | 54.90% | |||
Risk free interest rate | 1.54% | |||
Dividends | 0.00% | |||
Employee Stock Purchase Plan [Member] | ||||
Assumption of stock option's fair value | ||||
Expected life | 6 months | 6 months | 6 months | 6 months |
Volatility | 36.70% | 29.60% | 36.90% | 32.60% |
Risk free interest rate | 0.13% | 0.06% | 0.12% | 1.00% |
Dividends | 0.00% | 0.00% | 0.00% | 0.00% |
Stockholders' Equity and Stoc57
Stockholders' Equity and Stock-Based Compensation - Summary of Activity of Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 26, 2015 | Dec. 27, 2014 | |
Activity of stock option plans [Roll Forward] | ||
Number of Shares Outstanding (Options), Beginning Balance (in shares) | 1,382,993 | |
Number of Shares Outstanding (Options), Exercised (in shares) | (191,037) | |
Number of Shares Outstanding (Options), Cancelled (in shares) | (72,527) | |
Number of Shares Outstanding (Options), Ending Balance (in shares) | 1,119,429 | 1,382,993 |
Number of Shares Outstanding (Options), Exercisable (in shares) | 948,053 | |
Weighted average exercise price for stock option plans [Roll Forward] | ||
Weighted Average Exercise Price, Beginning Balance (in dollars per share) | $ 13.92 | |
Weighted Average Exercise Price, Exercised (in dollars per share) | 9.86 | |
Weighted Average Exercise Price, Cancelled (in dollars per share) | 17.22 | |
Weighted Average Exercise Price, Ending Balance (in dollars per share) | 14.40 | $ 13.92 |
Weighted Average Exercise Price, Exercisable (in dollars per share) | $ 14.07 | |
Weighed Average Remaining Contractual Term, Outstanding | 2 years 7 months 17 days | 3 years 4 months 28 days |
Weighed Average Remaining Contractual Term, Exercisable | 2 years 3 months 11 days | |
Aggregate Intrinsic Value, Outstanding | $ 925 | $ 4,108 |
Aggregate Intrinsic Value, Exercisable | $ 925 |
Stockholders' Equity and Stoc58
Stockholders' Equity and Stock-Based Compensation - RSU Activity (Details) - Restricted Stock Units (RSUs) [Member] | 9 Months Ended |
Sep. 26, 2015$ / sharesshares | |
Activity for RSUs [Roll Forward] | |
Number of RSU, Beginng balance (in shares) | shares | 563,337 |
Number of RSU, Granted (in shares) | shares | 448,299 |
Number of RSU, Released (in shares) | shares | (223,143) |
Number of RSU, Cancelled (in shares) | shares | (59,655) |
Number of RSU, Ending balance (in shares) | shares | 728,838 |
Weighted Average Fair Value for RSUs [Roll Forward] | |
Weighted Average Fair Value, Beginng balance (in dollars per share) | $ 17.90 |
Weighted Average Fair Value, Granted (in dollars per share) | 15.64 |
Weighted Average Fair Value, Released (in dollars per share) | 16.70 |
Weighted Average Fair Value, Cancelled (in dollars per share) | 17.10 |
Weighted Average Fair Value, Ending balance (in dollars per share) | $ 16.02 |
Stockholders' Equity and Stoc59
Stockholders' Equity and Stock-Based Compensation - PSU Valuation Assumptions (Details) - Performance-Based Restricted Stock Units (PSUs) [Member] | 9 Months Ended |
Sep. 26, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of PSUs granted and outstanding (in shares) | shares | 40,000 |
Grant Date Fair Value Per Share (in dollars per share) | $ 18.35 |
Expected Dividend | 0.00% |
Range of risk-free interest rates, minimum | 0.25% |
Range of risk-free interest rates, maximum | 1.10% |
Range of expected volatilities for peer group, minimum | 23.00% |
Range of expected volatilities for peer group, maximum | 65.00% |
Stockholders' Equity and Stoc60
Stockholders' Equity and Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2015 | Sep. 27, 2014 | Sep. 26, 2015 | Sep. 27, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 1,682 | $ 1,705 | $ 4,664 | $ 5,115 |
Cost of products [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 96 | 70 | 229 | 199 |
Cost of service [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 104 | 53 | 195 | 227 |
Research and development [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 300 | 331 | 796 | 967 |
Selling [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 511 | 490 | 1,403 | 1,353 |
General and administrative [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 671 | $ 761 | $ 2,041 | $ 2,369 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2015 | Sep. 27, 2014 | Sep. 26, 2015 | Sep. 27, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 713 | $ 17,919 | $ 1,847 | $ 18,494 |
Income Taxes - Textual (Details
Income Taxes - Textual (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 27, 2014 | Sep. 27, 2014 | Sep. 26, 2015 | |
Income Tax Disclosure [Abstract] | |||
Increase in valuation allowance for deferred tax assets | $ 21.1 | $ 21.1 | |
Anticipated increase in unrecognized tax benefits during next twelve months | $ 0.4 |
Segment, Geographic, Product 63
Segment, Geographic, Product and Significant Customer Information - Net Revenue (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2015USD ($) | Sep. 27, 2014USD ($) | Sep. 26, 2015USD ($)segment | Sep. 27, 2014USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Number of operating segments | segment | 1 | |||
Total net revenues: | ||||
Total net revenues | $ 45,678 | $ 27,133 | $ 144,682 | $ 126,738 |
United States [Member] | ||||
Total net revenues: | ||||
Total net revenues | 7,985 | 5,511 | 32,115 | 25,554 |
South Korea [Member] | ||||
Total net revenues: | ||||
Total net revenues | 6,794 | 6,327 | 28,807 | 30,589 |
Taiwan [Member] | ||||
Total net revenues: | ||||
Total net revenues | 11,331 | 640 | 35,173 | 11,337 |
China [Member] | ||||
Total net revenues: | ||||
Total net revenues | 6,731 | 2,848 | 12,357 | 27,694 |
Japan [Member] | ||||
Total net revenues: | ||||
Total net revenues | 7,778 | 4,099 | 15,919 | 10,005 |
Other [Member] | ||||
Total net revenues: | ||||
Total net revenues | $ 5,059 | $ 7,708 | $ 20,311 | $ 21,559 |
Segment, Geographic, Product 64
Segment, Geographic, Product and Significant Customer Information - Long-lived Tangible Assets (Details) - USD ($) $ in Thousands | Sep. 26, 2015 | Dec. 27, 2014 |
Long-lived tangible assets: | ||
Total long-lived tangible assets | $ 45,944 | $ 49,633 |
United States [Member] | ||
Long-lived tangible assets: | ||
Total long-lived tangible assets | 44,410 | 47,729 |
Taiwan [Member] | ||
Long-lived tangible assets: | ||
Total long-lived tangible assets | 1,146 | 1,473 |
All other [Member] | ||
Long-lived tangible assets: | ||
Total long-lived tangible assets | $ 388 | $ 431 |
Segment, Geographic, Product 65
Segment, Geographic, Product and Significant Customer Information - Customers More Than 10% of Accounts Receivable (Details) | Sep. 26, 2015 | Dec. 27, 2014 |
Micron [Member] | ||
Customers accounted for 10% or more of total accounts receivable | ||
Customers accounted for 10% or more of total accounts receivable | 24.00% | |
Taiwan Semiconductor Manufacturing Company Limited [Member] | ||
Customers accounted for 10% or more of total accounts receivable | ||
Customers accounted for 10% or more of total accounts receivable | 28.00% | 20.00% |
SK Hynix [Member] | ||
Customers accounted for 10% or more of total accounts receivable | ||
Customers accounted for 10% or more of total accounts receivable | 15.00% | |
Samsung Electronics Co. Ltd. [Member] | ||
Customers accounted for 10% or more of total accounts receivable | ||
Customers accounted for 10% or more of total accounts receivable | 10.00% | |
Global Foundries [Member] | ||
Customers accounted for 10% or more of total accounts receivable | ||
Customers accounted for 10% or more of total accounts receivable | 10.00% | |
Toshiba [Member] | ||
Customers accounted for 10% or more of total accounts receivable | ||
Customers accounted for 10% or more of total accounts receivable | 13.00% |
Segment, Geographic, Product 66
Segment, Geographic, Product and Significant Customer Information - Customers More Than 10% of Revenues (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2015 | Sep. 27, 2014 | Sep. 26, 2015 | Sep. 27, 2014 | |
Micron [Member] | ||||
Net revenues: | ||||
Customers accounted for 10% or more of total revenue | 14.00% | 25.00% | 18.00% | |
Taiwan Semiconductor Manufacturing Company Limited [Member] | ||||
Net revenues: | ||||
Customers accounted for 10% or more of total revenue | 17.00% | 19.00% | ||
SK Hynix [Member] | ||||
Net revenues: | ||||
Customers accounted for 10% or more of total revenue | 15.00% | 27.00% | 13.00% | 16.00% |
Samsung Electronics Co. Ltd. [Member] | ||||
Net revenues: | ||||
Customers accounted for 10% or more of total revenue | 16.00% | 28.00% | ||
Toshiba [Member] | ||||
Net revenues: | ||||
Customers accounted for 10% or more of total revenue | 13.00% | |||
Intel Corporation [Member] | ||||
Net revenues: | ||||
Customers accounted for 10% or more of total revenue | 14.00% |
Subsequent Event (Details)
Subsequent Event (Details) $ in Millions | Oct. 30, 2015USD ($) |
Subsequent Event [Member] | Employee severance and benefits [Member] | |
Subsequent Event [Line Items] | |
Expected restructuring costs | $ 1.3 |