Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jul. 03, 2021 | Jul. 30, 2021 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0000855658 | |
Entity Registrant Name | Lattice Semiconductor Corp | |
Amendment Flag | false | |
Current Fiscal Year End Date | --01-01 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2021 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 3, 2021 | |
Document Transition Report | false | |
Entity File Number | 000-18032 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 93-0835214 | |
Entity Address, Address Line One | 5555 NE Moore Court | |
Entity Address, City or Town | Hillsboro | |
Entity Address, State or Province | OR | |
Entity Address, Postal Zip Code | 97124 | |
City Area Code | 503 | |
Local Phone Number | 268-8000 | |
Title of 12(b) Security | Common Stock, $.01 par value | |
Trading Symbol | LSCC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 136,384,642 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2021 | Jun. 27, 2020 | Jul. 03, 2021 | Jun. 27, 2020 | |
Revenue | $ 125,905 | $ 100,589 | $ 241,621 | $ 197,905 |
Cost of revenue | 48,721 | 40,012 | 93,851 | 79,766 |
Gross margin | 77,184 | 60,577 | 147,770 | 118,139 |
Operating expenses: | ||||
Research and development | 27,454 | 22,458 | 51,520 | 44,151 |
Selling, general, and administrative | 25,607 | 24,488 | 50,699 | 47,039 |
Amortization of acquired intangible assets | 603 | 603 | 1,206 | 3,243 |
Restructuring charges | 204 | 546 | 380 | 1,486 |
Total operating expenses | 53,868 | 48,095 | 103,805 | 95,919 |
Income from operations | 23,316 | 12,482 | 43,965 | 22,220 |
Interest expense | (702) | (1,045) | (1,420) | (2,122) |
Other (expense) income, net | (135) | 37 | (297) | (13) |
Income before income taxes | 22,479 | 11,474 | 42,248 | 20,085 |
Income tax expense | 641 | 845 | 1,597 | 1,289 |
Net income | $ 21,838 | $ 10,629 | $ 40,651 | $ 18,796 |
Net income per share: | ||||
Basic (in dollars per share) | $ 0.16 | $ 0.08 | $ 0.30 | $ 0.14 |
Diluted (in dollars per share) | $ 0.15 | $ 0.08 | $ 0.29 | $ 0.14 |
Shares used in per share calculations: | ||||
Basic (in shares) | 136,388 | 134,857 | 136,394 | 134,555 |
Diluted (in shares) | 141,491 | 139,202 | 141,637 | 138,751 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2021 | Jun. 27, 2020 | Jul. 03, 2021 | Jun. 27, 2020 | |
Net income | $ 21,838 | $ 10,629 | $ 40,651 | $ 18,796 |
Other comprehensive income (loss): | ||||
Translation adjustment, net of tax | 188 | 151 | (49) | 40 |
Comprehensive income | $ 22,026 | $ 10,780 | $ 40,602 | $ 18,836 |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Jul. 03, 2021 | Jan. 02, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 187,734 | $ 182,332 |
Accounts receivable, net of allowance for credit losses | 71,219 | 64,581 |
Inventories, net | 65,584 | 64,599 |
Prepaid expenses and other current assets | 21,932 | 22,331 |
Total current assets | 346,469 | 333,843 |
Property and equipment, less accumulated depreciation of $113,651 at July 3, 2021 and $111,182 at January 2, 2021 | 37,475 | 39,666 |
Operating lease right-of-use assets | 26,430 | 22,178 |
Intangible assets, net | 6,469 | 6,321 |
Goodwill | 267,514 | 267,514 |
Deferred income taxes | 565 | 577 |
Other long-term assets | 8,630 | 9,968 |
Total assets | 693,552 | 680,067 |
Current liabilities: | ||
Accounts payable | 34,480 | 27,530 |
Accrued expenses | 21,360 | 21,411 |
Accrued payroll obligations | 15,578 | 18,028 |
Current portion of long-term debt | 17,154 | 12,762 |
Total current liabilities | 88,572 | 79,731 |
Long-term debt, net of current portion | 149,352 | 157,934 |
Long-term operating lease liabilities, net of current portion | 22,457 | 18,906 |
Other long-term liabilities | 35,856 | 39,069 |
Total liabilities | 296,237 | 295,640 |
Contingencies (Note 12) | ||
Stockholders' equity: | ||
Preferred stock, $.01 par value, 10,000,000 shares authorized, none issued and outstanding | 0 | 0 |
Common stock, $.01 par value, 300,000,000 shares authorized; 136,344,000 shares issued and outstanding as of July 3, 2021 and 136,236,000 shares issued and outstanding as of January 2, 2021 | 1,363 | 1,362 |
Additional paid-in capital | 742,996 | 770,711 |
Accumulated deficit | (345,247) | (385,898) |
Accumulated other comprehensive loss | (1,797) | (1,748) |
Total stockholders' equity | 397,315 | 384,427 |
Total liabilities and stockholders' equity | $ 693,552 | $ 680,067 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Jul. 03, 2021 | Jan. 02, 2021 |
Accumulated depreciation | $ 113,651 | $ 111,182 |
Preferred stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 136,344,000 | 136,236,000 |
Common stock, shares outstanding (in shares) | 136,344,000 | 136,236,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 03, 2021 | Jun. 27, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 40,651 | $ 18,796 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 11,759 | 13,456 |
Stock-based compensation expense | 22,374 | 19,740 |
Amortization of right-of-use assets | 3,291 | 2,976 |
Amortization of debt issuance costs and discount | 184 | 208 |
Other non-cash adjustments | (92) | (60) |
Changes in assets and liabilities: | ||
Accounts receivable, net | (6,638) | (22,491) |
Inventories, net | (985) | 919 |
Prepaid expenses and other assets | (1,063) | (1,169) |
Accounts payable | 6,950 | 4,409 |
Accrued expenses | 176 | 798 |
Accrued payroll obligations | (2,450) | 1,869 |
Operating lease liabilities, current and long-term portions | (3,246) | (2,957) |
Income taxes payable | (207) | 370 |
Net cash provided by (used in) operating activities | 70,704 | 36,864 |
Cash flows from investing activities: | ||
Capital expenditures | (4,413) | (6,829) |
Cash paid for software and intellectual property licenses | (6,377) | (4,626) |
Net cash provided by (used in) investing activities | (10,790) | (11,455) |
Cash flows from financing activities: | ||
Restricted stock unit tax withholdings | (13,923) | (6,642) |
Proceeds from issuance of common stock | 3,948 | 4,537 |
Purchases of treasury stock | (40,113) | 0 |
Proceeds from long-term debt | 0 | 50,000 |
Repayment of long-term debt | (4,375) | (26,250) |
Net cash provided by (used in) financing activities | (54,463) | 21,645 |
Effect of exchange rate change on cash | (49) | 40 |
Net increase in cash and cash equivalents | 5,402 | 47,094 |
Beginning cash and cash equivalents | 182,332 | 118,081 |
Ending cash and cash equivalents | 187,734 | 165,175 |
Supplemental disclosure of cash flow information and non-cash investing and financing activities: | ||
Interest paid | 1,180 | 2,193 |
Operating lease payments | 3,984 | 3,812 |
Income taxes paid, net of refunds | 1,805 | 1,579 |
Accrued purchases of plant and equipment | 253 | 1,067 |
Operating lease right-of-use assets obtained in exchange for lease obligations | $ 7,459 | $ 1,635 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balances (in shares) at Dec. 28, 2019 | 133,883,000 | |||||
Balances at Dec. 28, 2019 | $ 1,339 | $ 762,213 | $ 0 | $ (433,290) | $ (2,603) | $ 327,659 |
Net income | 0 | 0 | 0 | 18,796 | 0 | 18,796 |
Other comprehensive loss | 0 | 0 | 0 | 0 | 40 | 40 |
Total comprehensive income (loss) | 18,836 | |||||
Common stock issued in connection with employee equity incentive plans, net of shares withheld for employee taxes (in shares) | 1,264,000 | |||||
Common stock issued in connection with employee equity incentive plans, net of shares withheld for employee taxes | $ 12 | (2,117) | 0 | 0 | 0 | (2,105) |
Stock-based compensation expense | $ 0 | 19,740 | 0 | 0 | 0 | 19,740 |
Balances (in shares) at Jun. 27, 2020 | 135,147,000 | |||||
Balances at Jun. 27, 2020 | $ 1,351 | 779,836 | 0 | (414,494) | (2,563) | 364,130 |
Balances (in shares) at Mar. 28, 2020 | 134,513,000 | |||||
Balances at Mar. 28, 2020 | $ 1,345 | 769,451 | 0 | (425,123) | (2,714) | 342,959 |
Net income | 0 | 0 | 0 | 10,629 | 0 | 10,629 |
Other comprehensive loss | 0 | 0 | 0 | 0 | 151 | 151 |
Total comprehensive income (loss) | 10,780 | |||||
Common stock issued in connection with employee equity incentive plans, net of shares withheld for employee taxes (in shares) | 634,000 | |||||
Common stock issued in connection with employee equity incentive plans, net of shares withheld for employee taxes | $ 6 | (627) | 0 | 0 | 0 | (621) |
Stock-based compensation expense | $ 0 | 11,012 | 0 | 0 | 0 | 11,012 |
Balances (in shares) at Jun. 27, 2020 | 135,147,000 | |||||
Balances at Jun. 27, 2020 | $ 1,351 | 779,836 | 0 | (414,494) | (2,563) | $ 364,130 |
Balances (in shares) at Jan. 02, 2021 | 136,236,000 | 136,236,000 | ||||
Balances at Jan. 02, 2021 | $ 1,362 | 770,711 | 0 | (385,898) | (1,748) | $ 384,427 |
Net income | 0 | 0 | 0 | 40,651 | 0 | 40,651 |
Other comprehensive loss | 0 | 0 | 0 | 0 | (49) | (49) |
Total comprehensive income (loss) | 40,602 | |||||
Common stock issued in connection with employee equity incentive plans, net of shares withheld for employee taxes (in shares) | 937,000 | |||||
Common stock issued in connection with employee equity incentive plans, net of shares withheld for employee taxes | $ 9 | (9,984) | 0 | 0 | 0 | (9,975) |
Stock-based compensation expense | 0 | 22,374 | 0 | 0 | 0 | 22,374 |
Purchases of treasury stock | $ 0 | 0 | (40,113) | 0 | 0 | (40,113) |
Retirement of treasury stock (in shares) | (829,000) | |||||
Retirement of treasury stock | $ (8) | (40,105) | 40,113 | 0 | 0 | $ 0 |
Balances (in shares) at Jul. 03, 2021 | 136,344,000 | 136,344,000 | ||||
Balances at Jul. 03, 2021 | $ 1,363 | 742,996 | 0 | (345,247) | (1,797) | $ 397,315 |
Balances (in shares) at Apr. 03, 2021 | 136,401,000 | |||||
Balances at Apr. 03, 2021 | $ 1,364 | 759,291 | 0 | (367,085) | (1,985) | 391,585 |
Net income | 0 | 0 | 0 | 21,838 | 0 | 21,838 |
Other comprehensive loss | 0 | 0 | 0 | 0 | 188 | 188 |
Total comprehensive income (loss) | 22,026 | |||||
Common stock issued in connection with employee equity incentive plans, net of shares withheld for employee taxes (in shares) | 465,000 | |||||
Common stock issued in connection with employee equity incentive plans, net of shares withheld for employee taxes | $ 4 | (3,109) | 0 | 0 | 0 | (3,105) |
Stock-based compensation expense | 0 | 11,920 | 0 | 0 | 0 | 11,920 |
Purchases of treasury stock | $ 0 | 0 | (25,111) | 0 | 0 | (25,111) |
Retirement of treasury stock (in shares) | (522,000) | |||||
Retirement of treasury stock | $ (5) | (25,106) | 25,111 | 0 | 0 | $ 0 |
Balances (in shares) at Jul. 03, 2021 | 136,344,000 | 136,344,000 | ||||
Balances at Jul. 03, 2021 | $ 1,363 | $ 742,996 | $ 0 | $ (345,247) | $ (1,797) | $ 397,315 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 6 Months Ended |
Jul. 03, 2021 | |
Notes to Financial Statements | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | 1 Lattice Semiconductor Corporation and its subsidiaries (“Lattice,” the “Company,” “we,” “us,” or “our”) develop technologies that we monetize through differentiated programmable logic semiconductor products, system solutions, design services, and licenses. Basis of Presentation and Use of Estimates The accompanying Consolidated Financial Statements are unaudited and have been prepared in accordance with U.S. Generally Accepted Accounting Principles ("U.S. GAAP") and pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). In our opinion, they include all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of results for the interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted as permitted by the SEC's rules and regulations for interim reporting. These Consolidated Financial Statements should be read in conjunction with our audited financial statements and notes thereto included in our Annual Report on Form 10 January 2, 2021 (" 2020 10 The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments affecting the amounts reported in our consolidated condensed financial statements and the accompanying notes. We base our estimates and judgments on historical experience, knowledge of current conditions, and our beliefs of what could occur in the future considering available information. While we believe that our estimates, assumptions, and judgments are reasonable, they are based on information available when made, and because of the uncertainty inherent in these matters, actual results may We describe our accounting methods and practices in more detail in our 2020 10 no 2020 10 Certain prior year balances have been reclassified to conform to the current year’s presentation. Fiscal Reporting Periods We report based on a 52 53 December 31. 2021 52 January 1, 2022, 2020 53 January 2, 2021. second 2021 second 2020 July 3, 2021 June 27, 2020 six 13 26 Concentrations of Risk Potential exposure to concentrations of risk may 88% and 85% second 2021 2020 six July 3, 2021 June 27, 2020, two d for 47% and 36% of net accounts receivable at July 3, 2021 and 47% and 45% January 2, 2021 |
Note 2 - Net Income Per Share
Note 2 - Net Income Per Share | 6 Months Ended |
Jul. 03, 2021 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 2 Our calculation of the diluted share count includes the number of shares from our equity awards with market conditions or performance conditions that would be issuable under the terms of such awards at the end of the reporting period. For equity awards with a market condition, the number of shares included in the diluted share count as of the end of each period presented is determined by measuring the achievement of the market condition as of the end of the respective reporting periods. For equity awards with an EBITDA performance condition, as of the end of each period presented 2021 no July 3, 2021 not See "Note 9 to our consolidated financial statements for further discussion of our equity awards with market conditions or performance conditions. A summary of basic and diluted Net income per share is presented in the following table: Three Months Ended Six Months Ended July 3, June 27, July 3, June 27, (in thousands, except per share data) 2021 2020 2021 2020 Net income $ 21,838 $ 10,629 $ 40,651 $ 18,796 Shares used in basic Net income per share 136,388 134,857 136,394 134,555 Dilutive effect of stock options, RSUs, ESPP shares, and equity awards with a market condition or performance condition 5,103 4,345 5,243 4,196 Shares used in diluted Net income per share 141,491 139,202 141,637 138,751 Basic Net income per share $ 0.16 $ 0.08 $ 0.30 $ 0.14 Diluted Net income per share $ 0.15 $ 0.08 $ 0.29 $ 0.14 The computation of diluted Net income per share excludes the effects of stock options, restricted stock units ("RSUs"), Employee Stock Purchase Plan ("ESPP") shares, and equity awards with a market condition or performance condition that are antidilutive, aggregating approximately the following number of shares: Three Months Ended Six Months Ended July 3, June 27, July 3, June 27, (in thousands) 2021 2020 2021 2020 Stock options, RSUs, ESPP shares, and equity awards with a market condition or performance condition excluded as they are antidilutive 124 579 96 658 |
Note 3 - Revenue From Contracts
Note 3 - Revenue From Contracts With Customers | 6 Months Ended |
Jul. 03, 2021 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 3 Disaggregation of revenue The following tables provide information about revenue from contracts with customers disaggregated by major class of revenue, revenue by channel, and by geographical market, based on ship-to location of t he customer: Three Months Ended Six Months Ended Major Class of Revenue July 3, June 27, July 3, June 27, (In thousands) 2021 2020 2021 2020 Product $ 122,536 97 % $ 95,996 96 % $ 234,128 97 % $ 189,221 96 % Licensing and services 3,369 3 % 4,593 4 % 7,493 3 % 8,684 4 % Total revenue $ 125,905 100 % $ 100,589 100 % $ 241,621 100 % $ 197,905 100 % Revenue by Channel (In thousands) Product revenue - Distributors $ 111,168 88 % $ 85,152 85 % $ 209,947 87 % $ 160,607 81 % Product revenue - Direct 11,368 9 % 10,844 11 % 24,181 10 % 28,614 15 % Licensing and services revenue 3,369 3 % 4,593 4 % 7,493 3 % 8,684 4 % Total revenue $ 125,905 100 % $ 100,589 100 % $ 241,621 100 % $ 197,905 100 % Revenue by Geographical Market (In thousands) United States $ 11,672 9 % $ 9,860 10 % $ 20,782 9 % $ 23,179 12 % Other Americas 6,154 5 % 4,647 4 % 12,887 5 % 7,915 4 % Americas 17,826 14 % 14,507 14 % 33,669 14 % 31,094 16 % China 64,821 52 % 52,465 52 % 131,940 54 % 95,964 48 % Taiwan 6,577 5 % 7,593 8 % 9,391 4 % 17,452 9 % Japan 8,836 7 % 6,435 6 % 16,613 7 % 14,434 7 % Other Asia 16,221 13 % 8,067 8 % 26,901 11 % 15,403 8 % Asia 96,455 77 % 74,560 74 % 184,845 76 % 143,253 72 % Europe 11,624 9 % 11,522 12 % 23,107 10 % 23,558 12 % Total revenue $ 125,905 100 % $ 100,589 100 % $ 241,621 100 % $ 197,905 100 % Contract balances Our contract assets relate to our rights to consideration for licenses and royalties due to us as a member of the HDMI Founders consortium, with collection dependent on events other than the passage of time, such as collection of licenses and royalties from customers by the HDMI licensing agent. The balance results primarily from the amount of estimated revenue related to HDMI that we have recognized to date, but which has not first six 2021 (In thousands) Contract assets as of January 2, 2021 $ 5,611 Revenues recorded during the period 7,191 Transferred to Accounts receivable or collected (7,568 ) Contract assets as of July 3, 2021 $ 5,234 Contract liabilities are included in Accrued expenses on our Consolidated Balance Sheets. The following table summarizes activity during the first six 2021 (In thousands) Contract liabilities as of January 2, 2021 $ 3,068 Accruals for estimated future stock rotation and scrap returns 3,550 Less: Release of accruals for recognized stock rotation and scrap returns (1,831 ) Contract liabilities as of July 3, 2021 $ 4,787 |
Note 4 - Balance Sheet Componen
Note 4 - Balance Sheet Components | 6 Months Ended |
Jul. 03, 2021 | |
Notes to Financial Statements | |
Supplemental Balance Sheet Disclosures [Text Block] | 4 Accounts Receivable Accounts receivable do not July 3, January 2, (In thousands) 2021 2021 Accounts receivable $ 71,273 $ 64,635 Less: Allowance for credit losses (54 ) (54 ) Accounts receivable, net of allowance for credit losses $ 71,219 $ 64,581 Inventories July 3, January 2, (In thousands) 2021 2021 Work in progress $ 40,859 $ 34,724 Finished goods 24,725 29,875 Total inventories, net $ 65,584 $ 64,599 Accrued Expenses Included in Accrued expenses in the Consolidated Balance Sheets are the following balances: July 3, January 2, (In thousands) 2021 2021 Liability for non-cancelable contracts $ 6,780 $ 8,492 Current portion of operating lease liabilities 4,811 4,149 Contract liability under ASC 606 4,787 3,068 Other accrued expenses 4,982 5,702 Total accrued expenses $ 21,360 $ 21,411 Property and Equipment – Geographic Information Our Property and equipment, net by country at the end of each period was as follows: July 3, January 2, (In thousands) 2021 2021 United States $ 27,685 $ 29,440 Taiwan 4,793 5,171 Philippines 2,668 2,912 China 1,764 1,537 Japan 458 476 Other 107 130 Total foreign property and equipment, net 9,790 10,226 Total property and equipment, net $ 37,475 $ 39,666 Cloud Based Computing Implementation Costs Under the guidance in ASU 2018 15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350 40 first six 2021 (In thousands) Cloud based computing implementation costs as of January 2, 2021 $ 2,831 Costs capitalized 235 Amortization (367 ) Cloud based computing implementation costs as of July 3, 2021 $ 2,699 |
Note 5 - Long-term Debt
Note 5 - Long-term Debt | 6 Months Ended |
Jul. 03, 2021 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | 5 On May 17, 2019, five five During the second 2021, July 3, January 2, (In thousands) 2021 2021 Principal amount $ 167,500 $ 171,875 Unamortized original issuance discount and debt costs (994 ) (1,179 ) Less: Current portion of long-term debt (17,154 ) (12,762 ) Long-term debt, net of current portion and unamortized debt issue costs $ 149,352 $ 157,934 As of July 3, 2021 s 1.57%, and the effective interest rate on the revolving loan was 1.35%. We pay a commitment fee of 0.20% on the unused portion of the revolving loan. Three Months Ended Six Months Ended July 3, June 27, July 3, June 27, (In thousands) 2021 2020 2021 2020 Contractual interest $ 588 $ 918 $ 1,185 $ 2,004 Amortization of original issuance discount and debt costs 92 105 184 208 Total interest expense related to long-term debt $ 680 $ 1,023 $ 1,369 $ 2,212 Expected future principal payments are based on the schedule of required quarterly installments. As of July 3, 2021 Fiscal year (in thousands) 2021 (Remaining 2 quarters) $ 8,750 2022 17,500 2023 17,500 2024 123,750 $ 167,500 |
Note 6 - Restructuring
Note 6 - Restructuring | 6 Months Ended |
Jul. 03, 2021 | |
Notes to Financial Statements | |
Restructuring and Related Activities Disclosure [Text Block] | 6 Under the Q1 2020 2020 10 second 2021 2020, first six 2021 2020, July 3, 2021 Q1 2020 Q1 2020 Under the Q2 2019 2020 10 second 2021 2020, first six 2021 2020, July 3, 2021 Q2 2019 Q2 2019 Under the June 2017 2020 10 $0.2 second 2021 2020, first six 2021 2020, July 3, 2021 June 2017 June 2017 These expenses were recorded to Restructuring charges on our Consolidated Statements of Operations. The restructuring accrual balance is presented in Accrued expenses and in Other long-term liabilities on our Consolidated Balance Sheets. The following table displays the activity related to our restructuring plans: (In thousands) Severance & Related (1) Lease Termination & Fixed Assets Other (2) Total Accrued Restructuring at January 2, 2021 $ 246 $ 8,233 $ 664 $ 9,143 Restructuring charges 17 363 — 380 Costs paid or otherwise settled (10 ) (896 ) (664 ) (1,570 ) Accrued Restructuring at July 3, 2021 $ 253 $ 7,700 $ - $ 7,953 Accrued Restructuring at December 28, 2019 $ 160 $ 6,585 $ 865 $ 7,610 Restructuring charges 1,277 114 95 1,486 Costs paid or otherwise settled (508 ) (833 ) (201 ) (1,542 ) Accrued Restructuring at June 27, 2020 $ 929 $ 5,866 $ 759 $ 7,554 ( 1 Includes employee relocation and outplacement costs ( 2 Includes termination fees on the cancellation of certain contracts under the Q2 2019 |
Note 7 - Leases
Note 7 - Leases | 6 Months Ended |
Jul. 03, 2021 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | 7 We have operating leases for corporate offices, sales offices, research and development facilities, storage facilities, and a data center, the terms of which are described in our 2020 10 first 2021, 2028, July 3, 2021 We recorded fixed operating lease expenses of $2.0 second 2021 2020, and $3.9 and $3.8 million for the first six 2021 2020 The following table presents the lease balance classifications within the Consolidated Balance Sheets and summarizes their activity during the first six 2021 Operating lease right-of-use assets (in thousands) Balance as of January 2, 2021 $ 22,178 Right-of-use assets obtained for new and modified lease contracts during the period 7,459 Amortization of right-of-use assets during the period (3,291 ) Adjustments for present value and foreign currency effects 84 Balance as of July 3, 2021 $ 26,430 Operating lease liabilities (in thousands) Balance as of January 2, 2021 $ 23,055 Lease liabilities incurred for new lease contracts during the period 7,459 Accretion of lease liabilities 657 Operating cash used by payments on lease liabilities (3,984 ) Adjustments for present value and foreign currency effects 81 Balance as of July 3, 2021 27,268 Less: Current portion of operating lease liabilities (included in Accrued expenses) (4,811 ) Long-term operating lease liabilities, net of current portion $ 22,457 Maturities of operating lease liabilities as of July 3, 2021 Fiscal year (in thousands) 2021 (remaining 2 quarters) $ 2,564 2022 7,133 2023 7,189 2024 5,881 2025 3,664 Thereafter 4,614 Total lease payments 31,045 Less: amount representing interest (3,777 ) Total lease liabilities $ 27,268 Lease obligations for facilities restructured prior to the adoption of Topic 842 $7.7 July 3, 2021 |
Note 8 - Intangible Assets
Note 8 - Intangible Assets | 6 Months Ended |
Jul. 03, 2021 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | 8 On our Consolidated Balance Sheets at July 3, 2021 January 2, 2021, $133.6 first 2021, third We recorded amortization expense related to intangible assets on the Consolidated Statements of Operations as presented in the following table: Three Months Ended Six Months Ended July 3, June 27, July 3, June 27, (In thousands) 2021 2020 2021 2020 Research and development $ 223 $ 14 $ 421 $ 28 Amortization of acquired intangible assets 603 603 1,206 3,243 $ 826 $ 617 $ 1,627 $ 3,271 |
Note 9 - Stock-based Compensati
Note 9 - Stock-based Compensation | 6 Months Ended |
Jul. 03, 2021 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | Note 9 tion Total stock-based compensation expense included in our Consolidated Statements of Operations is presented in the following table: Three Months Ended Six Months Ended July 3, June 27, July 3, June 27, (In thousands) 2021 2020 2021 2020 Cost of revenue $ 825 $ 897 $ 1,491 $ 1,488 Research and development 3,969 2,234 6,736 4,828 Selling, general, and administrative 7,126 7,881 14,147 13,424 Total stock-based compensation $ 11,920 $ 11,012 $ 22,374 $ 19,740 Market-Based and Performance-Based Stock Compensation In the first six 2021, July 3, 2021, four two four second he first quarter of fiscal 2021 , the market condition for awards granted to certain executives in the first 2019 75 th percentile of the TSR condition, and the second In the first 2021, three 2000 third may 75th 55th zero 25th 25th 75th one fourth 2024, 13 During the first 2020, 2020. first 2020. For our awards with a market condition or a performance condition, we incurred stock compensation expense of approximately $6.7 million in the second 2021 2020, first six 2021 2020, The following table summarizes the activity for our awards with a market condition or performance condition: (Shares in thousands) Total Balance, January 2, 2021 1,021 Granted 607 Effect of vesting multiplier 55 Vested (110 ) Balance, July 3, 2021 1,573 |
Note 10 - Common Stock Repurcha
Note 10 - Common Stock Repurchase Program | 6 Months Ended |
Jul. 03, 2021 | |
Notes to Financial Statements | |
Treasury Stock [Text Block] | Note 10 On February 19, 2021, "2021 2021 twelve 2021 second quarter of fiscal 2021, million shares were repurchased for $25.1 million, or an average price paid per share of $48.07. July 3, 2021 twelve All repurchases were open market transactions funded from available working capital. All shares repurchased pursuant to the 2021 second quarter of fiscal 2021. |
Note 11 - Income Taxes
Note 11 - Income Taxes | 6 Months Ended |
Jul. 03, 2021 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 11 We are subject to federal and state income tax as well as income tax in the foreign jurisdictions in which we operate. For the second 2021 2020 $0.6 $0.8 or the first six 2021 2020, three six July 3, 2021 June 27, 2020 three six July 3, 2021 three six June 27, 2020 We updated our evaluation of the valuation allowance position in the United States through July 3, 2021 not not Our liability recorded for uncertain tax positions (including penalties and interest) was $21.9 million and $22.3 July 3, 2021 January 2, 2021 |
Note 12 - Contingencies
Note 12 - Contingencies | 6 Months Ended |
Jul. 03, 2021 | |
Notes to Financial Statements | |
Contingencies Disclosure [Text Block] | 12 Legal Matters On or about December 19, 2018, 2008. January 2019, not From time to time, we are exposed to certain additional asserted and unasserted potential claims. We review the status of each significant matter and assess its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and a range of possible losses can be estimated, we then accrue a liability for the estimated loss. Legal proceedings are subject to uncertainties, and the outcomes are difficult to predict. Because of such uncertainties, accruals are based only on the best information available at the time. As additional information becomes available, we reassess the potential liability related to pending claims and litigation and may |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jul. 03, 2021 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation and Use of Estimates The accompanying Consolidated Financial Statements are unaudited and have been prepared in accordance with U.S. Generally Accepted Accounting Principles ("U.S. GAAP") and pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). In our opinion, they include all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of results for the interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted as permitted by the SEC's rules and regulations for interim reporting. These Consolidated Financial Statements should be read in conjunction with our audited financial statements and notes thereto included in our Annual Report on Form 10 January 2, 2021 (" 2020 10 The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments affecting the amounts reported in our consolidated condensed financial statements and the accompanying notes. We base our estimates and judgments on historical experience, knowledge of current conditions, and our beliefs of what could occur in the future considering available information. While we believe that our estimates, assumptions, and judgments are reasonable, they are based on information available when made, and because of the uncertainty inherent in these matters, actual results may We describe our accounting methods and practices in more detail in our 2020 10 no 2020 10 Certain prior year balances have been reclassified to conform to the current year’s presentation. |
Fiscal Period, Policy [Policy Text Block] | Fiscal Reporting Periods We report based on a 52 53 December 31. 2021 52 January 1, 2022, 2020 53 January 2, 2021. second 2021 second 2020 July 3, 2021 June 27, 2020 six 13 26 |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations of Risk Potential exposure to concentrations of risk may 88% and 85% second 2021 2020 six July 3, 2021 June 27, 2020, two d for 47% and 36% of net accounts receivable at July 3, 2021 and 47% and 45% January 2, 2021 |
Note 2 - Net Income Per Share (
Note 2 - Net Income Per Share (Tables) | 6 Months Ended |
Jul. 03, 2021 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended Six Months Ended July 3, June 27, July 3, June 27, (in thousands, except per share data) 2021 2020 2021 2020 Net income $ 21,838 $ 10,629 $ 40,651 $ 18,796 Shares used in basic Net income per share 136,388 134,857 136,394 134,555 Dilutive effect of stock options, RSUs, ESPP shares, and equity awards with a market condition or performance condition 5,103 4,345 5,243 4,196 Shares used in diluted Net income per share 141,491 139,202 141,637 138,751 Basic Net income per share $ 0.16 $ 0.08 $ 0.30 $ 0.14 Diluted Net income per share $ 0.15 $ 0.08 $ 0.29 $ 0.14 Three Months Ended Six Months Ended July 3, June 27, July 3, June 27, (in thousands) 2021 2020 2021 2020 Stock options, RSUs, ESPP shares, and equity awards with a market condition or performance condition excluded as they are antidilutive 124 579 96 658 |
Note 3 - Revenue From Contrac_2
Note 3 - Revenue From Contracts With Customers (Tables) | 6 Months Ended |
Jul. 03, 2021 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended Six Months Ended Major Class of Revenue July 3, June 27, July 3, June 27, (In thousands) 2021 2020 2021 2020 Product $ 122,536 97 % $ 95,996 96 % $ 234,128 97 % $ 189,221 96 % Licensing and services 3,369 3 % 4,593 4 % 7,493 3 % 8,684 4 % Total revenue $ 125,905 100 % $ 100,589 100 % $ 241,621 100 % $ 197,905 100 % Revenue by Channel (In thousands) Product revenue - Distributors $ 111,168 88 % $ 85,152 85 % $ 209,947 87 % $ 160,607 81 % Product revenue - Direct 11,368 9 % 10,844 11 % 24,181 10 % 28,614 15 % Licensing and services revenue 3,369 3 % 4,593 4 % 7,493 3 % 8,684 4 % Total revenue $ 125,905 100 % $ 100,589 100 % $ 241,621 100 % $ 197,905 100 % Revenue by Geographical Market (In thousands) United States $ 11,672 9 % $ 9,860 10 % $ 20,782 9 % $ 23,179 12 % Other Americas 6,154 5 % 4,647 4 % 12,887 5 % 7,915 4 % Americas 17,826 14 % 14,507 14 % 33,669 14 % 31,094 16 % China 64,821 52 % 52,465 52 % 131,940 54 % 95,964 48 % Taiwan 6,577 5 % 7,593 8 % 9,391 4 % 17,452 9 % Japan 8,836 7 % 6,435 6 % 16,613 7 % 14,434 7 % Other Asia 16,221 13 % 8,067 8 % 26,901 11 % 15,403 8 % Asia 96,455 77 % 74,560 74 % 184,845 76 % 143,253 72 % Europe 11,624 9 % 11,522 12 % 23,107 10 % 23,558 12 % Total revenue $ 125,905 100 % $ 100,589 100 % $ 241,621 100 % $ 197,905 100 % |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | (In thousands) Contract assets as of January 2, 2021 $ 5,611 Revenues recorded during the period 7,191 Transferred to Accounts receivable or collected (7,568 ) Contract assets as of July 3, 2021 $ 5,234 (In thousands) Contract liabilities as of January 2, 2021 $ 3,068 Accruals for estimated future stock rotation and scrap returns 3,550 Less: Release of accruals for recognized stock rotation and scrap returns (1,831 ) Contract liabilities as of July 3, 2021 $ 4,787 |
Note 4 - Balance Sheet Compon_2
Note 4 - Balance Sheet Components (Tables) | 6 Months Ended |
Jul. 03, 2021 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | July 3, January 2, (In thousands) 2021 2021 Accounts receivable $ 71,273 $ 64,635 Less: Allowance for credit losses (54 ) (54 ) Accounts receivable, net of allowance for credit losses $ 71,219 $ 64,581 |
Schedule of Inventory, Current [Table Text Block] | July 3, January 2, (In thousands) 2021 2021 Work in progress $ 40,859 $ 34,724 Finished goods 24,725 29,875 Total inventories, net $ 65,584 $ 64,599 |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | July 3, January 2, (In thousands) 2021 2021 Liability for non-cancelable contracts $ 6,780 $ 8,492 Current portion of operating lease liabilities 4,811 4,149 Contract liability under ASC 606 4,787 3,068 Other accrued expenses 4,982 5,702 Total accrued expenses $ 21,360 $ 21,411 |
Property, Plant and Equipment [Table Text Block] | July 3, January 2, (In thousands) 2021 2021 United States $ 27,685 $ 29,440 Taiwan 4,793 5,171 Philippines 2,668 2,912 China 1,764 1,537 Japan 458 476 Other 107 130 Total foreign property and equipment, net 9,790 10,226 Total property and equipment, net $ 37,475 $ 39,666 |
Schedule of Capitalized Software Costs [Table Text Block] | (In thousands) Cloud based computing implementation costs as of January 2, 2021 $ 2,831 Costs capitalized 235 Amortization (367 ) Cloud based computing implementation costs as of July 3, 2021 $ 2,699 |
Note 5 - Long-term Debt (Tables
Note 5 - Long-term Debt (Tables) | 6 Months Ended |
Jul. 03, 2021 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | July 3, January 2, (In thousands) 2021 2021 Principal amount $ 167,500 $ 171,875 Unamortized original issuance discount and debt costs (994 ) (1,179 ) Less: Current portion of long-term debt (17,154 ) (12,762 ) Long-term debt, net of current portion and unamortized debt issue costs $ 149,352 $ 157,934 |
Interest Income and Interest Expense Disclosure [Table Text Block] | Three Months Ended Six Months Ended July 3, June 27, July 3, June 27, (In thousands) 2021 2020 2021 2020 Contractual interest $ 588 $ 918 $ 1,185 $ 2,004 Amortization of original issuance discount and debt costs 92 105 184 208 Total interest expense related to long-term debt $ 680 $ 1,023 $ 1,369 $ 2,212 |
Schedule of Maturities of Long-term Debt [Table Text Block] | Fiscal year (in thousands) 2021 (Remaining 2 quarters) $ 8,750 2022 17,500 2023 17,500 2024 123,750 $ 167,500 |
Note 6 - Restructuring (Tables)
Note 6 - Restructuring (Tables) | 6 Months Ended |
Jul. 03, 2021 | |
Notes Tables | |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | (In thousands) Severance & Related (1) Lease Termination & Fixed Assets Other (2) Total Accrued Restructuring at January 2, 2021 $ 246 $ 8,233 $ 664 $ 9,143 Restructuring charges 17 363 — 380 Costs paid or otherwise settled (10 ) (896 ) (664 ) (1,570 ) Accrued Restructuring at July 3, 2021 $ 253 $ 7,700 $ - $ 7,953 Accrued Restructuring at December 28, 2019 $ 160 $ 6,585 $ 865 $ 7,610 Restructuring charges 1,277 114 95 1,486 Costs paid or otherwise settled (508 ) (833 ) (201 ) (1,542 ) Accrued Restructuring at June 27, 2020 $ 929 $ 5,866 $ 759 $ 7,554 |
Note 7 - Leases (Tables)
Note 7 - Leases (Tables) | 6 Months Ended |
Jul. 03, 2021 | |
Notes Tables | |
Lessee, Operating Lease Right-of-Use Assets and Liabilities [Table Text Block] | Operating lease right-of-use assets (in thousands) Balance as of January 2, 2021 $ 22,178 Right-of-use assets obtained for new and modified lease contracts during the period 7,459 Amortization of right-of-use assets during the period (3,291 ) Adjustments for present value and foreign currency effects 84 Balance as of July 3, 2021 $ 26,430 Operating lease liabilities (in thousands) Balance as of January 2, 2021 $ 23,055 Lease liabilities incurred for new lease contracts during the period 7,459 Accretion of lease liabilities 657 Operating cash used by payments on lease liabilities (3,984 ) Adjustments for present value and foreign currency effects 81 Balance as of July 3, 2021 27,268 Less: Current portion of operating lease liabilities (included in Accrued expenses) (4,811 ) Long-term operating lease liabilities, net of current portion $ 22,457 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Fiscal year (in thousands) 2021 (remaining 2 quarters) $ 2,564 2022 7,133 2023 7,189 2024 5,881 2025 3,664 Thereafter 4,614 Total lease payments 31,045 Less: amount representing interest (3,777 ) Total lease liabilities $ 27,268 |
Note 8 - Intangible Assets (Tab
Note 8 - Intangible Assets (Tables) | 6 Months Ended |
Jul. 03, 2021 | |
Notes Tables | |
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | Three Months Ended Six Months Ended July 3, June 27, July 3, June 27, (In thousands) 2021 2020 2021 2020 Research and development $ 223 $ 14 $ 421 $ 28 Amortization of acquired intangible assets 603 603 1,206 3,243 $ 826 $ 617 $ 1,627 $ 3,271 |
Note 9 - Stock-based Compensa_2
Note 9 - Stock-based Compensation (Tables) | 6 Months Ended |
Jul. 03, 2021 | |
Notes Tables | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block] | Three Months Ended Six Months Ended July 3, June 27, July 3, June 27, (In thousands) 2021 2020 2021 2020 Cost of revenue $ 825 $ 897 $ 1,491 $ 1,488 Research and development 3,969 2,234 6,736 4,828 Selling, general, and administrative 7,126 7,881 14,147 13,424 Total stock-based compensation $ 11,920 $ 11,012 $ 22,374 $ 19,740 |
Share-based Payment Arrangement, Performance Shares, Outstanding Activity [Table Text Block] | (Shares in thousands) Total Balance, January 2, 2021 1,021 Granted 607 Effect of vesting multiplier 55 Vested (110 ) Balance, July 3, 2021 1,573 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation (Details Textual) - Sell-through Distributors Concentration Risk [Member] | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jul. 03, 2021 | Jun. 27, 2020 | Jul. 03, 2021 | Jun. 27, 2020 | Jan. 02, 2021 | |
Revenue Benchmark [Member] | |||||
Number of Distributors | 2 | 2 | |||
Revenue Benchmark [Member] | Distributors [Member] | |||||
Concentration Risk, Percentage | 88.00% | 85.00% | 87.00% | 81.00% | |
Accounts Receivable [Member] | Large Distributor One [Member] | |||||
Concentration Risk, Percentage | 47.00% | 47.00% | |||
Accounts Receivable [Member] | Large Distributor Two [Member] | |||||
Concentration Risk, Percentage | 36.00% | 45.00% |
Note 2 - Net Income Per Share -
Note 2 - Net Income Per Share - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2021 | Jun. 27, 2020 | Jul. 03, 2021 | Jun. 27, 2020 | |
Net income | $ 21,838 | $ 10,629 | $ 40,651 | $ 18,796 |
Shares used in basic Net income per share (in shares) | 136,388 | 134,857 | 136,394 | 134,555 |
Dilutive effect of stock options, RSUs, ESPP shares, and equity awards with a market condition or performance condition (in shares) | 5,103 | 4,345 | 5,243 | 4,196 |
Shares used in diluted Net income per share (in shares) | 141,491 | 139,202 | 141,637 | 138,751 |
Basic (in dollars per share) | $ 0.16 | $ 0.08 | $ 0.30 | $ 0.14 |
Diluted (in dollars per share) | $ 0.15 | $ 0.08 | $ 0.29 | $ 0.14 |
Stock options, RSUs, ESPP shares, and equity awards with a market condition or performance condition excluded as they are antidilutive (in shares) | 124 | 579 | 96 | 658 |
Note 3 - Revenue From Contrac_3
Note 3 - Revenue From Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2021 | Jun. 27, 2020 | Jul. 03, 2021 | Jun. 27, 2020 | |
Revenue | $ 125,905 | $ 100,589 | $ 241,621 | $ 197,905 |
Percentage of revenue | 100.00% | 100.00% | 100.00% | 100.00% |
UNITED STATES | ||||
Revenue | $ 11,672 | $ 9,860 | $ 20,782 | $ 23,179 |
Percentage of revenue | 9.00% | 10.00% | 9.00% | 12.00% |
Other Americas [Member] | ||||
Revenue | $ 6,154 | $ 4,647 | $ 12,887 | $ 7,915 |
Percentage of revenue | 5.00% | 4.00% | 5.00% | 4.00% |
Americas [Member] | ||||
Revenue | $ 17,826 | $ 14,507 | $ 33,669 | $ 31,094 |
Percentage of revenue | 14.00% | 14.00% | 14.00% | 16.00% |
CHINA | ||||
Revenue | $ 64,821 | $ 52,465 | $ 131,940 | $ 95,964 |
Percentage of revenue | 52.00% | 52.00% | 54.00% | 48.00% |
TAIWAN, PROVINCE OF CHINA | ||||
Revenue | $ 6,577 | $ 7,593 | $ 9,391 | $ 17,452 |
Percentage of revenue | 5.00% | 8.00% | 4.00% | 9.00% |
JAPAN | ||||
Revenue | $ 8,836 | $ 6,435 | $ 16,613 | $ 14,434 |
Percentage of revenue | 7.00% | 6.00% | 7.00% | 7.00% |
Other Asia [Member] | ||||
Revenue | $ 16,221 | $ 8,067 | $ 26,901 | $ 15,403 |
Percentage of revenue | 13.00% | 8.00% | 11.00% | 8.00% |
Asia [Member] | ||||
Revenue | $ 96,455 | $ 74,560 | $ 184,845 | $ 143,253 |
Percentage of revenue | 77.00% | 74.00% | 76.00% | 72.00% |
Europe [Member] | ||||
Revenue | $ 11,624 | $ 11,522 | $ 23,107 | $ 23,558 |
Percentage of revenue | 9.00% | 12.00% | 10.00% | 12.00% |
Product [Member] | ||||
Revenue | $ 122,536 | $ 95,996 | $ 234,128 | $ 189,221 |
Percentage of revenue | 97.00% | 96.00% | 97.00% | 96.00% |
Product [Member] | Sales Channel, Through Intermediary [Member] | ||||
Revenue | $ 111,168 | $ 85,152 | $ 209,947 | $ 160,607 |
Percentage of revenue | 88.00% | 85.00% | 87.00% | 81.00% |
Product [Member] | Sales Channel, Directly to Consumer [Member] | ||||
Revenue | $ 11,368 | $ 10,844 | $ 24,181 | $ 28,614 |
Percentage of revenue | 9.00% | 11.00% | 10.00% | 15.00% |
License and Service [Member] | ||||
Revenue | $ 3,369 | $ 4,593 | $ 7,493 | $ 8,684 |
Percentage of revenue | 3.00% | 4.00% | 3.00% | 4.00% |
Note 3 - Revenue From Contrac_4
Note 3 - Revenue From Contracts With Customers - Contract Balance (Details) $ in Thousands | 6 Months Ended |
Jul. 03, 2021USD ($) | |
Contract assets, balance | $ 5,611 |
Revenues recorded during the period | 7,191 |
Transferred to Accounts receivable or collected | (7,568) |
Contract assets, balance | 5,234 |
Contract liabilities, balance | 3,068 |
Accruals for estimated future stock rotation and scrap returns | 3,550 |
Less: Release of accruals for recognized stock rotation and scrap returns | (1,831) |
Contract liabilities, balance | $ 4,787 |
Note 4 - Balance Sheet Compon_3
Note 4 - Balance Sheet Components - Accounts Receivable (Details) - USD ($) $ in Thousands | Jul. 03, 2021 | Jan. 02, 2021 |
Accounts receivable | $ 71,273 | $ 64,635 |
Less: Allowance for credit losses | (54) | (54) |
Accounts receivable, net of allowance for credit losses | $ 71,219 | $ 64,581 |
Note 4 - Balance Sheet Compon_4
Note 4 - Balance Sheet Components - Inventories (Details) - USD ($) $ in Thousands | Jul. 03, 2021 | Jan. 02, 2021 |
Work in progress | $ 40,859 | $ 34,724 |
Finished goods | 24,725 | 29,875 |
Total inventories, net | $ 65,584 | $ 64,599 |
Note 4 - Balance Sheet Compon_5
Note 4 - Balance Sheet Components - Accrued Expenses (Details) - USD ($) $ in Thousands | Jul. 03, 2021 | Jan. 02, 2021 |
Liability for non-cancelable contracts | $ 6,780 | $ 8,492 |
Contract liability under ASC 606 | 4,787 | 3,068 |
Other accrued expenses | 4,982 | 5,702 |
Total accrued expenses | 21,360 | 21,411 |
Accrued Liabilities [Member] | ||
Current portion of operating lease liabilities | $ 4,811 | $ 4,149 |
Note 4 - Balance Sheet Compon_6
Note 4 - Balance Sheet Components - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Jul. 03, 2021 | Jan. 02, 2021 |
Property, Plant and Equipment, Net | $ 37,475 | $ 39,666 |
UNITED STATES | ||
Property, Plant and Equipment, Net | 27,685 | 29,440 |
TAIWAN, PROVINCE OF CHINA | ||
Property, Plant and Equipment, Net | 4,793 | 5,171 |
PHILIPPINES | ||
Property, Plant and Equipment, Net | 2,668 | 2,912 |
CHINA | ||
Property, Plant and Equipment, Net | 1,764 | 1,537 |
JAPAN | ||
Property, Plant and Equipment, Net | 458 | 476 |
Other [Member] | ||
Property, Plant and Equipment, Net | 107 | 130 |
Foreign Countries [Member] | ||
Property, Plant and Equipment, Net | $ 9,790 | $ 10,226 |
Note 4 - Balance Sheet Compon_7
Note 4 - Balance Sheet Components - Capitalized Software Costs (Details) $ in Thousands | 6 Months Ended |
Jul. 03, 2021USD ($) | |
Cloud based computing implementation costs as of January 2, 2021 | $ 2,831 |
Costs capitalized | 235 |
Amortization | (367) |
Cloud based computing implementation costs as of July 3, 2021 | $ 2,699 |
Note 5 - Long-term Debt (Detail
Note 5 - Long-term Debt (Details Textual) - USD ($) $ in Thousands | May 17, 2019 | Jul. 03, 2021 | Jul. 03, 2021 | Jun. 27, 2020 |
Repayments of Long-term Debt, Total | $ 4,375 | $ 26,250 | ||
Credit Agreement, May 17, 2019 [Member] | Revolving Credit Facility [Member] | ||||
Debt Instrument, Term (Year) | 5 years | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 75,000 | |||
Debt Instrument, Interest Rate, Effective Percentage | 1.35% | 1.35% | ||
Line of Credit Facility, Commitment Fee Percentage | 0.20% | |||
Credit Agreement, May 17, 2019 [Member] | Secured Term Loan [Member] | ||||
Debt Instrument, Face Amount | $ 175,000 | |||
Repayments of Long-term Debt, Total | $ 4,400 | |||
Debt Instrument, Interest Rate, Effective Percentage | 1.57% | 1.57% |
Note 5 - Long-term Debt - Fair
Note 5 - Long-term Debt - Fair Value of Long-term Debt (Details) - USD ($) $ in Thousands | Jul. 03, 2021 | Jan. 02, 2021 |
Principal amount | $ 167,500 | $ 171,875 |
Unamortized original issuance discount and debt costs | (994) | (1,179) |
Less: Current portion of long-term debt | (17,154) | (12,762) |
Long-term debt, net of current portion and unamortized debt issue costs | $ 149,352 | $ 157,934 |
Note 5 - Long-term Debt - Inter
Note 5 - Long-term Debt - Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2021 | Jun. 27, 2020 | Jul. 03, 2021 | Jun. 27, 2020 | |
Contractual interest | $ 588 | $ 918 | $ 1,185 | $ 2,004 |
Amortization of original issuance discount and debt costs | 92 | 105 | 184 | 208 |
Total interest expense related to long-term debt | $ 680 | $ 1,023 | $ 1,369 | $ 2,212 |
Note 5 - Long-term Debt - Expec
Note 5 - Long-term Debt - Expected Future Principal Payments (Details) $ in Thousands | Jul. 03, 2021USD ($) |
2021 (Remaining 2 quarters) | $ 8,750 |
2022 | 17,500 |
2023 | 17,500 |
2024 | 123,750 |
Long-term Debt, Total | $ 167,500 |
Note 6 - Restructuring (Details
Note 6 - Restructuring (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2021 | Jun. 27, 2020 | Jul. 03, 2021 | Jun. 27, 2020 | |
Restructuring Charges, Total | $ 204 | $ 546 | $ 380 | $ 1,486 |
Q1 2020 Plan [Member] | ||||
Restructuring Charges, Total | 300 | 1,400 | ||
Restructuring and Related Cost, Cost Incurred to Date | 2,000 | 2,000 | ||
Q1 2020 Plan [Member] | Maximum [Member] | ||||
Restructuring Charges, Total | 100 | 100 | ||
Q2 2019 Sales Plan [Member] | ||||
Restructuring Charges, Total | 0 | 200 | 0 | |
Restructuring and Related Cost, Cost Incurred to Date | 2,100 | 2,100 | ||
Q2 2019 Sales Plan [Member] | Maximum [Member] | ||||
Restructuring Charges, Total | 100 | |||
June 2017 Plan [Member] | ||||
Restructuring Charges, Total | 200 | $ 100 | 400 | $ 100 |
Restructuring and Related Cost, Cost Incurred to Date | 21,300 | 21,300 | ||
June 2017 Plan [Member] | Maximum [Member] | ||||
Restructuring and Related Cost, Expected Cost, Total | 23,500 | 23,500 | ||
June 2017 Plan [Member] | Minimum [Member] | ||||
Restructuring and Related Cost, Expected Cost, Total | $ 21,500 | $ 21,500 |
Note 6 - Restructuring - Activi
Note 6 - Restructuring - Activity Related to Restructuring Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 03, 2021 | Jun. 27, 2020 | Jul. 03, 2021 | Jun. 27, 2020 | ||
Restructuring charges | $ 204 | $ 546 | $ 380 | $ 1,486 | |
Employee Severance [Member] | |||||
Accrued Restructuring | [1] | 246 | 160 | ||
Restructuring charges | [1] | 17 | 1,277 | ||
Costs paid or otherwise settled | [1] | (10) | (508) | ||
Accrued Restructuring | [1] | 253 | 929 | 253 | 929 |
Lease Termination and Fixed Assets [Member] | |||||
Accrued Restructuring | 8,233 | 6,585 | |||
Restructuring charges | 363 | 114 | |||
Costs paid or otherwise settled | (896) | (833) | |||
Accrued Restructuring | 7,700 | 5,866 | 7,700 | 5,866 | |
Software Contracts and Engineering Tools [Member] | |||||
Accrued Restructuring | [2] | 664 | 865 | ||
Restructuring charges | [2] | 0 | 95 | ||
Costs paid or otherwise settled | [2] | (664) | (201) | ||
Accrued Restructuring | [2] | 0 | 759 | 0 | 759 |
Other Restructuring [Member] | |||||
Accrued Restructuring | 9,143 | 7,610 | |||
Restructuring charges | 380 | 1,486 | |||
Costs paid or otherwise settled | (1,570) | (1,542) | |||
Accrued Restructuring | $ 7,953 | $ 7,554 | $ 7,953 | $ 7,554 | |
[1] | Includes employee relocation and outplacement costs. | ||||
[2] | Includes termination fees on the cancellation of certain contracts under the Q2 2019 Sales Plan |
Note 7 - Leases (Details Textua
Note 7 - Leases (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 03, 2021 | Jun. 27, 2020 | Jul. 03, 2021 | Jun. 27, 2020 | Jan. 02, 2021 | |
Operating Lease, Right-of-Use Asset | $ 26,430 | $ 26,430 | $ 22,178 | ||
Operating Lease, Weighted Average Remaining Lease Term (Year) | 4 years 7 months 6 days | 4 years 7 months 6 days | |||
Operating Lease, Weighted Average Discount Rate, Percent | 5.30% | 5.30% | |||
Operating Lease, Cost | $ 2,000 | $ 1,900 | $ 3,900 | $ 3,800 | |
Operating Lease Liability for Previously Restructured Facilities | 7,700 | 7,700 | |||
Operating Lease, Liability, Total | 27,268 | 27,268 | $ 23,055 | ||
Hillsboro, Oregon and Shanghai, China Facility Leases [Member] | |||||
Operating Lease, Right-of-Use Asset | 7,200 | 7,200 | |||
Operating Lease, Liability, Total | $ 7,200 | $ 7,200 |
Note 7 - Leases - Lease Balance
Note 7 - Leases - Lease Balance Classifications Within the Consolidated Balance Sheets and Lease Activity (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jul. 03, 2021 | Jun. 27, 2020 | Jan. 02, 2021 | |
Balance | $ 22,178 | ||
Right-of-use assets obtained for new and modified lease contracts during the period | 7,459 | ||
Amortization of right-of-use assets during the period | (3,291) | $ (2,976) | |
Adjustments for present value and foreign currency effects | 84 | ||
Balance | 26,430 | ||
Balance | 23,055 | ||
Lease liabilities incurred for new lease contracts during the period | 7,459 | ||
Accretion of lease liabilities | 657 | ||
Operating cash used by payments on lease liabilities | (3,984) | $ (3,812) | |
Adjustments for present value and foreign currency effects | 81 | ||
Balance | 27,268 | ||
Long-term operating lease liabilities, net of current portion | 22,457 | $ 18,906 | |
Accounts Payable and Accrued Liabilities [Member] | |||
Less: Current portion of operating lease liabilities (included in Accrued expenses) | $ (4,811) |
Note 7 - Leases - Maturities of
Note 7 - Leases - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Jul. 03, 2021 | Jan. 02, 2021 |
2021 (remaining 2 quarters) | $ 2,564 | |
2022 | 7,133 | |
2023 | 7,189 | |
2024 | 5,881 | |
2025 | 3,664 | |
Thereafter | 4,614 | |
Total lease payments | 31,045 | |
Less: amount representing interest | (3,777) | |
Operating Lease, Liability, Total | $ 27,268 | $ 23,055 |
Note 8 - Intangible Assets (Det
Note 8 - Intangible Assets (Details Textual) - USD ($) $ in Millions | Jul. 03, 2021 | Apr. 03, 2021 | Jan. 02, 2021 |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 133.6 | $ 132 | |
Licensing Agreements [Member] | |||
Finite-Lived Intangible Assets, Net, Ending Balance | $ 1.8 |
Note 8 - Intangible Assets - Am
Note 8 - Intangible Assets - Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2021 | Jun. 27, 2020 | Jul. 03, 2021 | Jun. 27, 2020 | |
Amortization of intangible assets | $ 826 | $ 617 | $ 1,627 | $ 3,271 |
Research and Development Expense [Member] | ||||
Amortization of intangible assets | 223 | 14 | 421 | 28 |
Amortization of Acquired Intangible Assets [Member] | ||||
Amortization of intangible assets | $ 603 | $ 603 | $ 1,206 | $ 3,243 |
Note 9 - Stock-based Compensa_3
Note 9 - Stock-based Compensation (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jul. 03, 2021 | Apr. 03, 2021 | Jun. 27, 2020 | Mar. 28, 2020 | Jul. 03, 2021 | Jun. 27, 2020 | |
Share-based Payment Arrangement, Expense | $ 11,920 | $ 11,012 | $ 22,374 | $ 19,740 | ||
Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Payment Arrangement, Expense | $ 1,800 | |||||
Restricted Stock Units (RSUs) [Member] | Chief Executive Officer [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 3 years | |||||
Restricted Stock Units (RSUs) [Member] | Executive Officer [Member] | Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage, Based on Market Conditions | 200.00% | |||||
Awards with Market Condition or Performance Condition [Member] | ||||||
Share-based Payment Arrangement, Expense | $ 6,700 | $ 6,700 | $ 11,300 | $ 10,900 | ||
Share-based Payment Arrangement, Tranche Two [Member] | Performance Shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 33.30% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage, Based on Market Conditions | 200.00% | |||||
Share-based Payment Arrangement, Tranche Two [Member] | Restricted Stock Units (RSUs) [Member] | Executive Officer [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage Of Market Condition Achieved | 55.00% | |||||
TSR Relative To PHLX Semiconductor Sector Index, 75th Percentile [Member] | Restricted Stock Units (RSUs) [Member] | Executive Officer [Member] | Minimum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage, Based on Market Conditions | 250.00% | |||||
TSR Relative To PHLX Semiconductor Sector Index, 75th Percentile [Member] | Restricted Stock Units (RSUs) [Member] | Executive Officer [Member] | Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage, Based on Market Conditions | 200.00% | |||||
Share-based Payment Arrangement, Tranche One [Member] | Restricted Stock Units (RSUs) [Member] | Executive Officer [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage Of Market Condition Achieved | 75.00% | |||||
TSR Relative To PHLX Semiconductor Sector Index, 55th Percentile [Member] | Restricted Stock Units (RSUs) [Member] | Executive Officer [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage, Based on Market Conditions | 100.00% | |||||
Share-based Payment Arrangement, Tranche Three [Member] | Restricted Stock Units (RSUs) [Member] | Executive Officer [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0.00% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage Of Market Condition Achieved | 25.00% | |||||
Share-based Payment Arrangement, Tranche Three [Member] | Restricted Stock Units (RSUs) [Member] | Executive Officer [Member] | Minimum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage Of Market Condition Achieved | 25.00% | |||||
Share-based Payment Arrangement, Tranche Three [Member] | Restricted Stock Units (RSUs) [Member] | Executive Officer [Member] | Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage Of Market Condition Achieved | 75.00% |
Note 9 - Stock-based Compensa_4
Note 9 - Stock-based Compensation - Stock-based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2021 | Jun. 27, 2020 | Jul. 03, 2021 | Jun. 27, 2020 | |
Total stock-based compensation | $ 11,920 | $ 11,012 | $ 22,374 | $ 19,740 |
Cost of Sales [Member] | ||||
Total stock-based compensation | 825 | 897 | 1,491 | 1,488 |
Research and Development Expense [Member] | ||||
Total stock-based compensation | 3,969 | 2,234 | 6,736 | 4,828 |
Selling, General and Administrative Expenses [Member] | ||||
Total stock-based compensation | $ 7,126 | $ 7,881 | $ 14,147 | $ 13,424 |
Note 9 - Stock-based Compensa_5
Note 9 - Stock-based Compensation - Share Based Compensation Performance Shares Award Outstanding (Details) - Performance Shares [Member] shares in Thousands | 6 Months Ended |
Jul. 03, 2021shares | |
Balance, Shares (in shares) | 1,021 |
Granted, Shares (in shares) | 607 |
Effect of vesting multiplier, Shares (in shares) | 55 |
Vested, Shares (in shares) | (110) |
Balance, Shares (in shares) | 1,573 |
Note 10 - Common Stock Repurc_2
Note 10 - Common Stock Repurchase Program (Details Textual) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 3 Months Ended | 6 Months Ended | |
Jul. 03, 2021 | Jul. 03, 2021 | Feb. 19, 2021 | |
Treasury Stock, Value, Acquired, Cost Method | $ 25,111 | $ 40,113 | |
2021 Repurchase Program [Member] | |||
Stock Repurchase Program, Authorized Amount | $ 60,000 | ||
Treasury Stock, Shares, Acquired (in shares) | 0.5 | ||
Treasury Stock, Value, Acquired, Cost Method | $ 25,100 | ||
Treasury Stock Acquired, Average Cost Per Share (in dollars per share) | $ 48.07 | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 19,900 | $ 19,900 |
Note 11 - Income Taxes (Details
Note 11 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 03, 2021 | Jun. 27, 2020 | Jul. 03, 2021 | Jun. 27, 2020 | Jan. 02, 2021 | |
Income Tax Expense (Benefit), Total | $ 641 | $ 845 | $ 1,597 | $ 1,289 | |
Other Noncurrent Liabilities [Member] | |||||
Liability for Uncertainty in Income Taxes, Noncurrent | 21,900 | $ 21,900 | $ 22,300 | ||
Domestic Tax Authority [Member] | |||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | ||||
Foreign Tax Authority [Member] | |||||
Deferred Tax Assets, Valuation Allowance, Total | $ 0 | $ 0 |
Note 12 - Contingencies (Detail
Note 12 - Contingencies (Details Textual) $ in Millions | 6 Months Ended |
Jul. 03, 2021USD ($) | |
Loss Contingency, Damages Sought, Value | $ 138 |