Organization and Significant Accounting Policies (Tables)

9 Months Ended

Sep. 25, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The Company’s most significant customers (having accounted for 10% or more of sales) and their related sales as a percentage of total sales were as follows:


	Three months ended						Nine months ended
	September 25, 2015			September 26, 2014			September 25, 2015			September 26, 2014
Lam Research Corporation		49.4	%		39.3	%		50.4	%		36.0	%
Applied Materials, Inc.		26.4			20.9			27.1			22.0
ASM International		*			13.9			*			17.0

Total		75.8	%		74.1	%		77.5	%		75.0	%

*	Total sales for the period are below 10%.

Components of Reserve for Warranty Costs

Components of the reserve for warranty costs consisted of the following (in thousands):


	Nine months ended
	September 25, 2015			September 26, 2014
	September 25, 2015			September 26, 2014
Beginning balance	$	109		$	101
Change in reserve		300			97
Warranty costs incurred in the current period		(225	)		(85	)

Ending balance	$	184		$	113

Schedule of Stock Option Activity

Stock option activity for the nine months ended September 25, 2015:


	Shares			Weighted Average Exercise Price		Weighted Remaining Contractual Life (years)		Aggregate Intrinsic Value (in thousands)
Outstanding at December 26, 2014		853,551		$	8.87		1.35	$	1,798
Granted		—			—
Exercised		(339,303	)	$	6.48
Canceled		(197,600	)	$	11.18

Outstanding at September 25, 2015		316,648		$	10.01		2.31	$	234,133

Options exercisable at September 25, 2015		316,648		$	10.01		2.31	$	234,133

Summary of Restricted Stock Unit and Restricted Stock Award Activity

The following table summarizes the Company’s RSU and RSA activity for the nine months September 25, 2015:


	Shares			Aggregate Fair Value (in thousands)
Unvested restricted stock units and restricted stock awards at December 26, 2014		1,078,279		$	9,673
Granted		840,500
Vested		(424,381	)
Forfeited		(216,657	)

Unvested restricted stock units and restricted stock awards at September 25, 2015		1,277,741		$	6,800

Vested and expected to vest restricted stock units and restricted stock awards at September 25, 2015		1,076,186		$	5,686

Stock-Based Compensation Expense Included in Condensed Consolidated Statements of Operations

The following table shows the Company’s stock-based compensation expense included in the condensed consolidated statements of operations (in thousands):


	Three months ended						Nine months ended
	September 25, 2015			September 26, 2014			September 25, 2015			September 26, 2014
	September 25, 2015			September 26, 2014			September 25, 2015			September 26, 2014
Cost of sales (1)	$	304		$	267		$	908		$	862
Research and development		658			100			1,247			245
Sales and marketing		49			119			150			334
General and administrative		103			671			302			1728

		1,114			1,157			2,607			3,169
Income tax benefit		(310	)		(226	)		(746	)		(1,056	)

Net stock-based compensation expense	$	804		$	931		$	1,861		$	2,113

(1)	Stock-based compensation expenses capitalized in inventory for the three and nine month periods ended September 25, 2015 and September 26, 2014 were considered immaterial.