Stockholders’ Equity and Stock-Based Compensation

3 Months Ended

Apr. 01, 2023

Equity [Abstract]

Stockholders’ Equity and Stock-Based Compensation

Stockholders’ Equity and Stock-Based Compensation

Common Stock Repurchase Programs

On October 26, 2020, our Board of Directors authorized a two-year program to repurchase up to $50 million of outstanding common stock to offset potential dilution from issuances of common stock under our stock-based compensation programs. During the three months ended March 26, 2022, we repurchased 240,548 shares of common stock for $9.4 million. We utilized the remaining funds available for repurchase under this program during fiscal 2022.

On May 20, 2022, our Board of Directors authorized an additional program to repurchase up to $75 million of outstanding common stock, also with the primary purpose to offset potential dilution from issuances of common stock under our stock-based compensation programs. The share repurchase program will expire on May 20, 2024. During the three months ended April 1, 2023, we did not repurchase any common stock. As of April 1, 2023, $18.6 million remained available for future repurchases.

Our policy related to repurchases of our common stock is to charge the excess of cost over par value to additional paid-in capital once the shares are retired. All repurchases were made in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended.

Restricted Stock Units

Restricted stock unit (“RSU”) activity under our equity incentive plan was as follows:

	Units	Weighted Average Grant Date Fair Value
RSUs at December 31, 2022	2,227,081	$	35.28
Awards granted	79,020	25.51
Awards vested	(30,751)	34.87
Awards forfeited	(82,523)	35.16
RSUs at April 1, 2023	2,192,827	34.94

Performance Restricted Stock Units

We may grant Performance RSUs (“PRSUs”) to certain executives, which vest based upon us achieving certain market performance criteria. There were no market based PRSUs granted during the three months ended April 1, 2023. PRSUs are included as part of the RSU activity above.

Employee Stock Purchase Plan

Information related to activity under our Employee Stock Purchase Plan (“ESPP”) was as follows:

	Three Months Ended
	April 1, 2023
Shares issued	210,055
Weighted average per share purchase price	$	23.92
Weighted average per share discount from the fair value of our common stock on the date of issuance	$	(4.22)

Stock-Based Compensation

Stock-based compensation was included in our Condensed Consolidated Statements of Income as follows (in thousands):

	Three Months Ended
	April 1, 2023		March 26, 2022
Cost of revenues	$	1,910	$	1,078
Research and development	2,372		1,986
Selling, general and administrative	5,008		4,456
Total stock-based compensation	$	9,290	$	7,520

Unrecognized Compensation Costs

At April 1, 2023, the unrecognized stock-based compensation was as follows (dollars in thousands): 

	Unrecognized Expense		Average Expected Recognition Period in Years
Restricted stock units	$	39,761	1.98
Performance restricted stock units	9,486		1.86
Employee stock purchase plan	985		0.33
Total unrecognized stock-based compensation expense	$	50,232	1.93