QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of exchange on which registered | ||||||
☒ | Accelerated filer | ☐ | |||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||||||||
Emerging growth company |
Page No. | |||||||||||
Item 1. | |||||||||||
Item 2. | |||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
Item 1. | |||||||||||
Item 1A. | |||||||||||
Item 2. | |||||||||||
Item 6. | |||||||||||
ITEM 1. | FINANCIAL STATEMENTS |
April 2, 2021 | October 2, 2020 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Short-term investments | |||||||||||
Accounts receivable, net | |||||||||||
Inventories | |||||||||||
Prepaid and other current assets | |||||||||||
Total current assets | |||||||||||
Property and equipment, net | |||||||||||
Goodwill | |||||||||||
Intangible assets, net | |||||||||||
Deferred income taxes | |||||||||||
Other investments | |||||||||||
Other long-term assets | |||||||||||
TOTAL ASSETS | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
Current liabilities: | |||||||||||
Current portion of finance lease obligations and other | $ | $ | |||||||||
Current portion of long-term debt | |||||||||||
Accounts payable | |||||||||||
Accrued liabilities | |||||||||||
Total current liabilities | |||||||||||
Finance lease obligations and other, less current portion | |||||||||||
Long-term debt, less current portion | |||||||||||
Warrant liability | |||||||||||
Other long-term liabilities | |||||||||||
Total liabilities | |||||||||||
Stockholders’ equity: | |||||||||||
Common stock | |||||||||||
Treasury stock, at cost | ( | ( | |||||||||
Accumulated other comprehensive income | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Total stockholders’ equity | |||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
April 2, 2021 | April 3, 2020 | April 2, 2021 | April 3, 2020 | ||||||||||||||||||||
Revenue | $ | $ | $ | $ | |||||||||||||||||||
Cost of revenue | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Research and development | |||||||||||||||||||||||
Selling, general and administrative | |||||||||||||||||||||||
Restructuring charges | |||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
Income (loss) from operations | ( | ( | |||||||||||||||||||||
Other expense: | |||||||||||||||||||||||
Warrant liability gain (expense) | ( | ||||||||||||||||||||||
Interest expense, net | ( | ( | ( | ( | |||||||||||||||||||
Other income (expense), net | ( | ( | ( | ||||||||||||||||||||
Total other expense, net | ( | ( | ( | ( | |||||||||||||||||||
Income (loss) before income taxes | ( | ( | |||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||
Net income (loss) | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Net income (loss) per share: | |||||||||||||||||||||||
Income (loss) per share - Basic | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Income (loss) per share - Diluted | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Weighted average shares used: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
April 2, 2021 | April 3, 2020 | April 2, 2021 | April 3, 2020 | ||||||||||||||||||||
Net income (loss) | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Unrealized loss on short term investments, net of tax | ( | ( | ( | ( | |||||||||||||||||||
Foreign currency translation loss, net of tax | ( | ( | ( | ( | |||||||||||||||||||
Other comprehensive loss, net of tax | ( | ( | ( | ( | |||||||||||||||||||
Total comprehensive income (loss) | $ | $ | ( | $ | $ | ( |
Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income | Additional Paid-in Capital | Accumulated Deficit | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Treasury Stock | ||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||
Balance as of January 1, 2021 | $ | ( | $ | ( | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Stock option exercises | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted common stock and units | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Shares repurchased for tax withholdings on equity awards | ( | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Equity component of convertible notes, net | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Balance as of April 2, 2021 | $ | ( | $ | ( | $ | $ | $ | ( | $ |
Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income | Additional Paid-in Capital | Accumulated Deficit | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Treasury Stock | ||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||
Balance as of October 2, 2020 | $ | ( | $ | ( | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Stock option exercises | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted common stock and units | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock pursuant to employee stock purchase plan | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Shares repurchased for tax withholdings on equity awards | ( | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Issuance of common stock for the cashless exercise of warrants | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Equity component of convertible notes, net | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Balance as of April 2, 2021 | $ | ( | $ | ( | $ | $ | $ | ( | $ |
Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income | Additional Paid-in Capital | Accumulated Deficit | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Treasury Stock | ||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||
Balance as of January 03, 2020 | $ | ( | $ | ( | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Stock option exercises | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted common stock and units | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Shares repurchased for tax withholdings on equity awards | ( | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||
Balance as of April 3, 2020 | $ | ( | $ | ( | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income | Additional Paid-in Capital | Accumulated Deficit | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Treasury Stock | ||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||
Balance as of September 27, 2019 | $ | ( | $ | ( | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Stock option exercises | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted common stock and units | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock pursuant to employee stock purchase plan | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Shares repurchased for tax withholdings on equity awards | ( | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||
Balance as of April 3, 2020 | $ | ( | $ | ( | $ | $ | $ | ( | $ |
Six Months Ended | |||||||||||
April 2, 2021 | April 3, 2020 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income (loss) | $ | $ | ( | ||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
Depreciation and intangibles amortization | |||||||||||
Share-based compensation | |||||||||||
Warrant liability expense (gain) | ( | ||||||||||
Deferred financing cost amortization and write offs | |||||||||||
Deferred income taxes | |||||||||||
(Gain) loss on equity method investment | ( | ||||||||||
Other adjustments, net | |||||||||||
Change in operating assets and liabilities: | |||||||||||
Accounts receivable | ( | ||||||||||
Inventories | |||||||||||
Prepaid expenses and other assets | ( | ||||||||||
Accounts payable | |||||||||||
Accrued and other liabilities | ( | ||||||||||
Income taxes | ( | ||||||||||
Net cash provided by operating activities | |||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Purchases of property and equipment | ( | ( | |||||||||
Proceeds from sales and maturities of short-term investments | |||||||||||
Purchases of short-term investments | ( | ( | |||||||||
Sale of assets | |||||||||||
Net cash provided by (used in) investing activities | ( | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Proceeds from convertible notes, net of issuance costs | |||||||||||
Payments on long-term debt | ( | ( | |||||||||
Payments on finance leases and other | ( | ( | |||||||||
Proceeds from stock option exercises and employee stock purchases | |||||||||||
Repurchase of common stock - tax withholdings on equity awards | ( | ( | |||||||||
Net cash used in financing activities | ( | ( | |||||||||
Foreign currency effect on cash | ( | ||||||||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | ( | ||||||||||
CASH AND CASH EQUIVALENTS — Beginning of period | |||||||||||
CASH AND CASH EQUIVALENTS — End of period | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
April 2, 2021 | April 3, 2020 | April 2, 2021 | April 3, 2020 | ||||||||||||||||||||
Revenue by Market: | |||||||||||||||||||||||
Telecommunications | $ | $ | $ | $ | |||||||||||||||||||
Industrial & Defense | |||||||||||||||||||||||
Data Center | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
April 2, 2021 | April 3, 2020 | April 2, 2021 | April 3, 2020 | ||||||||||||||||||||
Revenue by Geographic Region: | |||||||||||||||||||||||
United States | $ | $ | $ | $ | |||||||||||||||||||
China | |||||||||||||||||||||||
Asia Pacific, excluding China (1) | |||||||||||||||||||||||
Other Countries (2) | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
April 2, 2021 | October 2, 2020 | $ Change | % Change | ||||||||||||||||||||
Contract liabilities | $ | $ | $ | ( | ( | % |
April 2, 2021 | |||||||||||||||||||||||
Amortized Cost | Gross Unrealized Holding Gains | Gross Unrealized Holding Losses | Aggregate Fair Value | ||||||||||||||||||||
Corporate bonds | $ | $ | $ | ( | $ | ||||||||||||||||||
Commercial paper | ( | ||||||||||||||||||||||
Total short-term investments | $ | $ | $ | ( | $ |
October 2, 2020 | |||||||||||||||||||||||
Amortized Cost | Gross Unrealized Holding Gains | Gross Unrealized Holding Losses | Aggregate Fair Value | ||||||||||||||||||||
Corporate bonds | $ | $ | $ | ( | $ | ||||||||||||||||||
Commercial paper | ( | ||||||||||||||||||||||
Total short-term investments | $ | $ | $ | ( | $ |
April 2, 2021 | |||||
Less than one year | $ | ||||
Over one year | |||||
Total available-for-sale investments | $ |
Level 1 - Quoted prices in active markets for identical assets or liabilities. | ||
Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets with insufficient volume or infrequent transactions (less active markets), or model-driven valuations in which all significant inputs are observable or can be derived principally from, or corroborated with, observable market data. | ||
Level 3 - Fair value is derived from valuation techniques in which one or more significant inputs are unobservable, including assumptions and judgments made by us. |
April 2, 2021 | |||||||||||||||||||||||
Fair Value | Active Markets for Identical Assets (Level 1) | Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | ||||||||||||||||||||
Assets | |||||||||||||||||||||||
Money market funds | $ | $ | $ | $ | |||||||||||||||||||
Commercial paper | |||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||
Total assets measured at fair value | $ | $ | $ | $ | |||||||||||||||||||
October 2, 2020 | |||||||||||||||||||||||
Fair Value | Active Markets for Identical Assets (Level 1) | Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | ||||||||||||||||||||
Assets | |||||||||||||||||||||||
Money market funds | $ | $ | $ | $ | |||||||||||||||||||
Commercial paper | |||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||
Total assets measured at fair value | $ | $ | $ | $ | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Common stock warrant liability | $ | $ | $ | $ | |||||||||||||||||||
Total liabilities measured at fair value | $ | $ | $ | $ |
Inputs | ||||||||||||||||||||
Liabilities | Valuation Technique | Unobservable Input | October 2, 2020 | |||||||||||||||||
Warrant liability | Black-Scholes model | Volatility | ||||||||||||||||||
Discount rate | ||||||||||||||||||||
Expected life | ||||||||||||||||||||
Exercise price | $ | |||||||||||||||||||
Stock price | $ | |||||||||||||||||||
Dividend rate |
October 2, 2020 | Net Realized Losses Included in Earnings | Purchases and Issuances | Sales and Settlements | April 2, 2021 | |||||||||||||||||||||||||
Common stock warrant liability | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||
September 27, 2019 | Net Realized Losses (Gains) Included in Earnings | Purchases and Issuances | Sales and Settlements | April 3, 2020 | |||||||||||||||||||||||||
Common stock warrant liability | $ | $ | ( | $ | $ | $ |
April 2, 2021 | October 2, 2020 | ||||||||||
Raw materials | $ | $ | |||||||||
Work-in-process | |||||||||||
Finished goods | |||||||||||
Total inventory, net | $ | $ |
April 2, 2021 | October 2, 2020 | ||||||||||
Construction in process | $ | $ | |||||||||
Machinery and equipment | |||||||||||
Leasehold improvements | |||||||||||
Furniture and fixtures | |||||||||||
Computer equipment and software | |||||||||||
Finance lease assets | |||||||||||
Total property and equipment | |||||||||||
Less accumulated depreciation and amortization | ( | ( | |||||||||
Property and equipment, net | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
April 2, 2021 | April 3, 2020 | April 2, 2021 | April 3, 2020 | ||||||||||||||||||||
Cost of revenue | $ | $ | $ | $ | |||||||||||||||||||
Selling, general and administrative | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
April 2, 2021 | October 2, 2020 | ||||||||||
Acquired technology | $ | $ | |||||||||
Customer relationships | |||||||||||
Trade name (indefinite-lived) | |||||||||||
Total | |||||||||||
Less accumulated amortization | ( | ( | |||||||||
Intangible assets — net | $ | $ |
Intangible Assets | |||||||||||||||||||||||||||||
Total Intangible Assets | Acquired Technology | Customer Relationships | Trade Name | Goodwill | |||||||||||||||||||||||||
Balance as of October 2, 2020 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Currency translation adjustment | ( | ||||||||||||||||||||||||||||
Balance as of April 2, 2021 | $ | $ | $ | $ | $ |
2021 Remaining | 2022 | 2023 | 2024 | 2025 | Thereafter | Total | |||||||||||||||||
Amortization expense | $ | $ |
April 2, 2021 | ||||||||
Principal Balance | Effective Interest Rate | |||||||
LIBOR plus | $ | % | ||||||
% | ||||||||
Total principal amount outstanding | ||||||||
Less: Unamortized discount and deferred financing costs | ( | |||||||
Total long-term debt |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
April 2, 2021 | April 3, 2020 | April 2, 2021 | April 3, 2020 | ||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net income (loss) | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Warrant liability gain | ( | ( | |||||||||||||||||||||
Net income (loss) attributable to common stockholders | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted average common shares outstanding-basic | |||||||||||||||||||||||
Dilutive effect of stock options, restricted stock, restricted stock units and warrants | |||||||||||||||||||||||
Weighted average common shares outstanding-diluted | |||||||||||||||||||||||
Net loss to common stockholders per share-Basic: | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Net loss to common stockholders per share-Diluted: | $ | $ | ( | $ | $ | ( |
Three Months Ended | Six Months Ended | ||||||||||
April 3, 2020 | April 3, 2020 | ||||||||||
Employee related expenses and adjustments | $ | $ | |||||||||
Facility related expenses | |||||||||||
Total restructuring charges | $ | $ |
Employee-Related Expense (1) | Facility-Related Expense (2) | Total | |||||||||
Balance as of October 2, 2020 | $ | $ | $ | ||||||||
Charges and adjustments | |||||||||||
Charges paid/settled/other | ( | ( | |||||||||
Balance as of April 2, 2021 | $ | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
April 2, 2021 | April 3, 2020 | April 2, 2021 | April 3, 2020 | ||||||||||||||||||||
Cost of revenue | $ | $ | $ | $ | |||||||||||||||||||
Research and development | |||||||||||||||||||||||
Selling, general and administrative | |||||||||||||||||||||||
Total share-based compensation expense | $ | $ | $ | $ |
Number of Shares | Weighted-Average Exercise Price per Share | Weighted-Average Remaining Contractual Term (in Years) | Aggregate Intrinsic Value | ||||||||||||||||||||
Options outstanding as of October 2, 2020 | $ | ||||||||||||||||||||||
Exercised | ( | ||||||||||||||||||||||
Forfeited, canceled or expired | |||||||||||||||||||||||
Options outstanding as of April 2, 2021 | $ | $ | |||||||||||||||||||||
Options vested and exercisable as of April 2, 2021 |
Number of shares (in thousands) | Weighted- Average Grant Date Fair Value | ||||||||||
Balance as of October 2, 2020 | $ | ||||||||||
Granted | |||||||||||
Vested and released | ( | ||||||||||
Forfeited, canceled or expired | ( | ||||||||||
Balance as of April 2, 2021 | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
April 2, 2021 | April 3, 2020 | April 2, 2021 | April 3, 2020 | ||||||||||||||||||||
Income tax expense | $ | $ | $ | $ | |||||||||||||||||||
Effective income tax rate | % | ( | % | % | ( | % |
Six Months Ended | |||||||||||
April 2, 2021 | April 3, 2020 | ||||||||||
Cash paid for interest | $ | $ | |||||||||
Cash paid for income taxes | $ | $ | |||||||||
Non-cash activities: | |||||||||||
Operating lease right-of-use assets obtained in exchange for new lease liabilities | $ | $ | |||||||||
Financing lease assets obtained in exchange for new lease liabilities | $ | $ | |||||||||
Non-cash capital expenditures | $ | $ |
April 2, 2021 | October 2, 2020 | |||||||||||||
United States | $ | $ | ||||||||||||
Europe (1) | ||||||||||||||
Other Countries (2) | ||||||||||||||
Total | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
Revenue | April 2, 2021 | April 3, 2020 | April 2, 2021 | April 3, 2020 | |||||||||||||||||||
Customer A | % | % | % | ||||||||||||||||||||
Customer B | % | % | |||||||||||||||||||||
Accounts Receivable | April 2, 2021 | October 2, 2020 | |||||||||
Customer A | % | % | |||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
April 2, 2021 | April 3, 2020 | April 2, 2021 | April 3, 2020 | ||||||||||||||||||||
Revenue | $ | 150,583 | $ | 126,424 | $ | 299,087 | $ | 245,521 | |||||||||||||||
Cost of revenue (1) | 66,470 | 63,054 | 134,713 | 123,947 | |||||||||||||||||||
Gross profit | 84,113 | 63,370 | 164,374 | 121,574 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Research and development (1) | 34,619 | 35,830 | 71,555 | 70,988 | |||||||||||||||||||
Selling, general and administrative (1) | 30,522 | 31,994 | 61,774 | 64,334 | |||||||||||||||||||
Restructuring charges (2) | — | 815 | — | 2,049 | |||||||||||||||||||
Total operating expenses | 65,141 | 68,639 | 133,329 | 137,371 | |||||||||||||||||||
Income (loss) from operations | 18,972 | (5,269) | 31,045 | (15,797) | |||||||||||||||||||
Other expense: | |||||||||||||||||||||||
Warrant liability expense (3) | — | 8,647 | (11,130) | 4,560 | |||||||||||||||||||
Interest expense | (4,851) | (7,672) | (9,585) | (16,293) | |||||||||||||||||||
Other expense, net (4) | 2,879 | (4,352) | (1,624) | (8,092) | |||||||||||||||||||
Total other expense, net | (1,972) | (3,377) | (22,339) | (19,825) | |||||||||||||||||||
Income (loss) before income taxes | 17,000 | (8,646) | 8,706 | (35,622) | |||||||||||||||||||
Income tax expense | 2,193 | 1,580 | 2,867 | 2,966 | |||||||||||||||||||
Net income (loss) | $ | 14,807 | $ | (10,226) | $ | 5,839 | $ | (38,588) |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
April 2, 2021 | April 3, 2020 | April 2, 2021 | April 3, 2020 | ||||||||||||||||||||
(a) Intangible amortization expense: | |||||||||||||||||||||||
Cost of revenue | $ | 3,806 | $ | 4,347 | $ | 7,683 | $ | 8,767 | |||||||||||||||
Selling, general and administrative | 7,601 | 8,072 | 15,717 | 16,726 | |||||||||||||||||||
(b) Share-based compensation expense: | |||||||||||||||||||||||
Cost of revenue | $ | 833 | $ | 995 | $ | 1,705 | $ | 1,957 | |||||||||||||||
Research and development | 3,431 | 4,111 | 6,985 | 7,018 | |||||||||||||||||||
Selling, general and administrative | 4,305 | 5,170 | 10,010 | 9,451 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
April 2, 2021 | April 3, 2020 | April 2, 2021 | April 3, 2020 | ||||||||||||||||||||
Revenue | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||||
Cost of revenue | 44.1 | 49.9 | 45.0 | 50.5 | |||||||||||||||||||
Gross profit | 55.9 | 50.1 | 55.0 | 49.5 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Research and development | 23.0 | 28.3 | 23.9 | 28.9 | |||||||||||||||||||
Selling, general and administrative | 20.3 | 25.3 | 20.7 | 26.2 | |||||||||||||||||||
Restructuring charges | — | 0.6 | — | 0.8 | |||||||||||||||||||
Total operating expenses | 43.3 | 54.3 | 44.6 | 56.0 | |||||||||||||||||||
Income (loss) from operations | 12.6 | (4.2) | 10.4 | (6.4) | |||||||||||||||||||
Other expense: | |||||||||||||||||||||||
Warrant liability gain (expense) | — | 6.8 | (3.7) | 1.9 | |||||||||||||||||||
Interest expense | (3.2) | (6.1) | (3.2) | (6.6) | |||||||||||||||||||
Other income (expense), net | 1.9 | (3.4) | (0.5) | (3.3) | |||||||||||||||||||
Total other expense, net | (1.3) | (2.7) | (7.5) | (8.1) | |||||||||||||||||||
Income (loss) before income taxes | 11.3 | (6.8) | 2.9 | (14.5) | |||||||||||||||||||
Income tax expense | 1.5 | 1.2 | 1.0 | 1.2 | |||||||||||||||||||
Net income (loss) | 9.8 | % | (8.1) | % | 2.0 | % | (15.7) | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
April 2, 2021 | April 3, 2020 | % Change | April 2, 2021 | April 3, 2020 | % Change | ||||||||||||||||||||||||||||||||||||||||||
Telecom | $ | 42,273 | $ | 51,648 | (18.2) | % | $ | 93,805 | $ | 97,249 | (3.5) | % | |||||||||||||||||||||||||||||||||||
Industrial & Defense | 72,090 | 48,069 | 50.0 | % | 133,708 | 98,552 | 35.7 | % | |||||||||||||||||||||||||||||||||||||||
Data Center | 36,220 | 26,707 | 35.6 | % | 71,574 | 49,720 | 44.0 | % | |||||||||||||||||||||||||||||||||||||||
Total | $ | 150,583 | $ | 126,424 | 19.1 | % | $ | 299,087 | $ | 245,521 | 21.8 | % | |||||||||||||||||||||||||||||||||||
Telecom | 28.1 | % | 40.9 | % | 31.4 | % | 39.6 | % | |||||||||||||||||||||||||||||||||||||||
Industrial & Defense | 47.9 | % | 38.0 | % | 44.7 | % | 40.1 | % | |||||||||||||||||||||||||||||||||||||||
Data Center | 24.0 | % | 21.1 | % | 23.9 | % | 20.3 | % | |||||||||||||||||||||||||||||||||||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
April 2, 2021 | April 3, 2020 | April 2, 2021 | April 3, 2020 | |||||||||||||||||||||||
Income tax expense | 2,193 | 1,580 | 2,867 | 2,966 | ||||||||||||||||||||||
Effective income tax rate | 12.9 | % | (18.3) | % | 32.9 | % | (8.3) | % |
Six Months Ended | ||||||||||||||
April 2, 2021 | April 3, 2020 | |||||||||||||
Cash and cash equivalents, beginning of period | $ | 129,441 | $ | 75,519 | ||||||||||
Net cash provided by operating activities | 62,721 | 62,938 | ||||||||||||
Net cash provided by (used in) investing activities | 34,012 | (9,048) | ||||||||||||
Net cash used in financing activities | (121,098) | (8,210) | ||||||||||||
Foreign currency effect on cash | 464 | (464) | ||||||||||||
Cash and cash equivalents, end of period | $ | 105,540 | $ | 120,735 |
Period | Total Number of Shares (or Units) Purchased (1) | Average Price Paid per Share (or Unit) | Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs | |||||||||||||||||||
January 2, 2021-January 29, 2021 | 633 | $ | 61.67 | — | — | ||||||||||||||||||
January 30, 2021-February 26, 2021 | 154,318 | 67.67 | — | — | |||||||||||||||||||
February 27, 2021-April 2, 2021 | 189 | 66.33 | — | — | |||||||||||||||||||
Total | 155,140 | $ | 67.64 | — | — |
Exhibit Number | Description | ||||
3.1 | |||||
3.2 | |||||
4.1 | |||||
4.2 | |||||
10.1* | |||||
10.2* | |||||
10.3* | |||||
10.4* | |||||
10.5* | |||||
31.1 | |||||
31.2 | |||||
32.1 | |||||
101 | The following material from the Quarterly Report on Form 10-Q of MACOM Technology Solutions Holdings, Inc. for the fiscal quarter ended April 2, 2021, formatted in Inline XBRL: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of Comprehensive Loss, (iv) Consolidated Statements of Stockholders’ Equity, (v) Consolidated Statements of Cash Flows, (vi) Notes to Consolidated Financial Statements and (vii) document and entity information, tagged as blocks of text and including detailed tags. | ||||
104 | The cover page for the Quarterly Report on Form 10-Q of MACOM Technology Solutions Holdings, Inc. for the fiscal quarter ended April 2, 2021, formatted in Inline XBRL and included as Exhibit 101 | ||||
* | Management contract or compensatory plan | ||||
MACOM TECHNOLOGY SOLUTIONS HOLDINGS, INC. | ||||||||
Dated: April 29, 2021 | By: | /s/ Stephen G. Daly | ||||||
Stephen G. Daly | ||||||||
President and Chief Executive Officer (Principal Executive Officer) | ||||||||
Dated: April 29, 2021 | By: | /s/ John F. Kober | ||||||
John F. Kober | ||||||||
Senior Vice President and Chief Financial Officer (Principal Accounting and Principal Financial Officer) |
Participant: | |||||
Grant Date | |||||
Vesting Commencement Date: | |||||
Number of Time-Based Restricted Stock Units: | |||||
Target Number of Performance-Based Restricted Stock Units: |
Vesting Date | Number of Restricted Stock Units Vesting | |||||||
By: | Name: | |||||||
Its: | Taxpayer ID: | |||||||
Address: |
Participant: | |||||
Grant Date | |||||
Vesting Commencement Date: | |||||
Number of Restricted Stock Units: |
Vesting Date | Number of Restricted Stock Units Vesting | |||||||
By: | Name: | |||||||
Its: | Taxpayer ID: | |||||||
Address: |
Participant: | |||||
Grant Date | |||||
Vesting Commencement Date: | |||||
Number of Shares Subject to the Award (the “Shares”): | |||||
Fair Market Value per Share on Grant Date: | |||||
Vesting Schedule: |
By: | Name: | |||||||
Its: | Taxpayer ID: | |||||||
Address: |
Date: | April 29, 2021 | ||||
/s/ Stephen G. Daly | |||||
Stephen G. Daly | |||||
President and Chief Executive Officer (Principal Executive Officer) |
Date: | April 29, 2021 | ||||
/s/ John F. Kober | |||||
John F. Kober | |||||
SVP and Chief Financial Officer | |||||
(Principal Financial Officer) |
Date: | April 29, 2021 | ||||
By: | /s/ Stephen G. Daly | ||||
Stephen G. Daly | |||||
President and Chief Executive Officer | |||||
(Principal Executive Officer) | |||||
By: | /s/ John F. Kober | ||||
John F. Kober | |||||
SVP and Chief Financial Officer | |||||
(Principal Financial Officer) |
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Apr. 02, 2021 |
Apr. 03, 2020 |
Apr. 02, 2021 |
Apr. 03, 2020 |
|
Income Statement [Abstract] | ||||
Revenue | $ 150,583 | $ 126,424 | $ 299,087 | $ 245,521 |
Cost of revenue | 66,470 | 63,054 | 134,713 | 123,947 |
Gross profit | 84,113 | 63,370 | 164,374 | 121,574 |
Operating expenses: | ||||
Research and development | 34,619 | 35,830 | 71,555 | 70,988 |
Selling, general and administrative | 30,522 | 31,994 | 61,774 | 64,334 |
Restructuring charges | 0 | 815 | 0 | 2,049 |
Total operating expenses | 65,141 | 68,639 | 133,329 | 137,371 |
Income (loss) from operations | 18,972 | (5,269) | 31,045 | (15,797) |
Other expense: | ||||
Warrant liability gain (expense) | 0 | 8,647 | (11,130) | 4,560 |
Interest expense, net | (4,851) | (7,672) | (9,585) | (16,293) |
Other income (expense), net | 2,879 | (4,352) | (1,624) | (8,092) |
Total other expense, net | (1,972) | (3,377) | (22,339) | (19,825) |
Income (loss) before income taxes | 17,000 | (8,646) | 8,706 | (35,622) |
Income tax expense | 2,193 | 1,580 | 2,867 | 2,966 |
Net income (loss) | $ 14,807 | $ (10,226) | $ 5,839 | $ (38,588) |
Net income (loss) per share: | ||||
Income (loss) per share - Basic | $ 0.22 | $ (0.15) | $ 0.09 | $ (0.58) |
Income (loss) per share - Diluted | $ 0.21 | $ (0.28) | $ 0.08 | $ (0.64) |
Weighted average shares used: | ||||
Basic (in shares) | 68,504 | 66,522 | 68,130 | 66,375 |
Diluted (in shares) | 70,546 | 67,085 | 69,983 | 66,921 |
Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Apr. 02, 2021 |
Apr. 03, 2020 |
Apr. 02, 2021 |
Apr. 03, 2020 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 14,807 | $ (10,226) | $ 5,839 | $ (38,588) |
Unrealized loss on short term investments, net of tax | (373) | (1,376) | (196) | (1,297) |
Foreign currency translation loss, net of tax | (1,303) | (687) | (351) | (935) |
Other comprehensive loss, net of tax | (1,676) | (2,063) | (547) | (2,232) |
Total comprehensive income (loss) | $ 13,131 | $ (12,289) | $ 5,292 | $ (40,820) |
Supplemental Cash Flow Information |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information | SUPPLEMENTAL CASH FLOW INFORMATION The following is a summary of supplemental cash flow information for the periods presented (in thousands):
During the six months ended April 2, 2021, we capitalized $1.3 million of non-cash costs to property and equipment associated with construction of a power generator that are paid by our service provider. For accounting purposes, we control the underlying assets during construction. This is included in Non-cash capital expenditures above.
|
Supplemental Cash Flow Information |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Supplemental Cash Flow Information Regarding Non-cash Investing and Financing Activities | The following is a summary of supplemental cash flow information for the periods presented (in thousands):
|
Supplemental Cash Flow Information - Additional Information |
6 Months Ended |
---|---|
Apr. 02, 2021
USD ($)
| |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Income (Loss) from Equity Method Investments | $ 1,738,000 |
Unpaid amounts related to purchase of assets | 1,538,000 |
Capitalized Costs, Uncompleted Wells, Equipment and Facilities | $ 1,300,000 |
Supplemental Cash Flow Information - Schedule of Supplemental Cash Flow Information Regarding Non-cash Investing and Financing Activities - USD ($) |
6 Months Ended | |
---|---|---|
Apr. 02, 2021 |
Apr. 03, 2020 |
|
Noncash or Part Noncash Acquisitions [Line Items] | ||
Cash paid for interest | $ 8,863,000 | $ 14,830,000 |
Cash paid for income taxes | 715,000 | 920,000 |
Operating lease right-of-use assets obtained in exchange for new lease liabilities | 2,923,000 | 157,000 |
Financing lease assets obtained in exchange for new lease liabilities | 0 | 586,000 |
Unpaid amounts related to purchase of assets | $ 1,538,000 | $ 609,000 |
Summary of Significant Accounting Policies |
6 Months Ended |
---|---|
Apr. 02, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Unaudited Interim Financial Information—The accompanying unaudited, condensed consolidated financial statements have been prepared according to the rules and regulations of the United States (the “U.S.”) Securities and Exchange Commission (the “SEC”) and, in the opinion of management, reflect all adjustments, which include normal recurring adjustments, necessary for a fair statement of the condensed consolidated balance sheets, condensed consolidated statements of operations, comprehensive income (loss), stockholders' equity and cash flows of MACOM Technology Solutions Holdings, Inc. (“MACOM”, the “Company”, “us”, “we” or “our”) for the periods presented. We prepare our interim financial information using the same accounting principles we use for our annual audited consolidated financial statements. Certain information and note disclosures normally included in the annual audited consolidated financial statements have been condensed or omitted in accordance with prescribed SEC rules. We believe that the disclosures made in our condensed consolidated financial statements and the accompanying notes are adequate to make the information presented not misleading. The condensed consolidated balance sheet as of October 2, 2020 is as reported in our audited consolidated financial statements as of that date. Our accounting policies are described in the notes to our October 2, 2020 consolidated financial statements, which were included in our Annual Report on Form 10-K for our fiscal year ended October 2, 2020 filed with the SEC on November 18, 2020 (the “2020 Annual Report on Form 10-K”). We recommend that the financial statements included in this Quarterly Report on Form 10-Q be read in conjunction with the consolidated financial statements and notes included in our 2020 Annual Report on Form 10-K. Principles of Consolidation—The accompanying condensed consolidated financial statements include our accounts and the accounts of our majority-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. We have a 52- or 53-week fiscal year ending on the Friday closest to the last day of September. Fiscal year 2021 includes 52 weeks and fiscal year 2020 included 53 weeks. To offset the effect of holidays, for fiscal years in which there are 53 weeks, we include the extra week arising in such fiscal years in the first fiscal quarter. Our first fiscal quarter ended January 1, 2021 included 13 weeks and the first fiscal quarter ended January 3, 2020 had 14 weeks. Use of Estimates—The preparation of condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities during the reporting periods, the reported amounts of revenue and expenses during the reporting periods, and the disclosure of contingent assets and liabilities at the date of the financial statements. On an ongoing basis, we base estimates and assumptions on historical experience, currently available information and various other factors that management believes to be reasonable under the circumstances. Actual results may differ materially from these estimates and assumptions. Recent Accounting Pronouncements—Our Recent Accounting Pronouncements are described in the 2020 Annual Report on Form 10-K. Pronouncements Adopted in Fiscal Year 2021 On the first day of fiscal year 2021, we adopted Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU introduces a new accounting model known as Credit Expected Credit Losses (“CECL”), which requires earlier recognition of credit losses. The CECL model utilizes a lifetime expected credit loss measurement objective for the recognition of credit losses for receivables at the time the financial asset is originated or acquired, replacing the current incurred loss methodology that delays recognition of credit losses until a probable loss has been incurred. There are other provisions within the standard affecting how impairments of other financial assets may be recorded and presented, as well as expanded disclosures. There was no impact to our unaudited condensed consolidated financial statements from the adoption of this guidance. We generate accounts receivable from customers and they are classified as short-term. We monitor collections and maintain a provision for expected credit losses based on historical trends, current conditions, and relevant forecasted information, in addition to provisions established for any specific collection issues that have been identified. As of April 2, 2021, our allowance for expected credit losses was less than $0.1 million. Our investments in debt securities, which are classified as available-for-sale, are further disclosed in Note 3, Investments. As of April 2, 2021, our available-for-sale debt securities had gross unrealized losses of $0.2 million, which we believe to be temporary, and therefore there is no allowance for credit losses recorded in our condensed consolidated statement of operations. In January 2017, the Financial Accounting Standards Board (the “FASB”) issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. ASU 2017-04 simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Instead, a one-step quantitative impairment test calculates goodwill impairment as the excess of the carrying value of a reporting unit over its fair value, up to the carrying value of the goodwill. This ASU should be applied on a prospective basis. We adopted this ASU in the first quarter of fiscal year 2021 and the adoption of this update did not have an impact on our condensed consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-15, Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, to provide additional guidance on the accounting for costs of implementing cloud computing arrangements that are service contracts, and requiring customers in such arrangements to follow the guidance in Subtopic 350-40. The amendments in this update require the capitalization of implementation costs during the application development stage of such hosting arrangements and amortization of the expense over the term of the arrangement beginning when the module or component of the hosting arrangement is ready for its intended use. Capitalized implementation costs and amortization thereof are also required to be classified in the same line item in the statements of financial position, operations and cash flows associated with the hosting service fees. We adopted this ASU in the first quarter of fiscal year 2021 and selected prospective application to all implementation costs incurred after the adoption date. The adoption of this update did not have an impact on our condensed consolidated financial statements and related disclosures. Pronouncements for Adoption in Subsequent Periods In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions to applying the guidance on contract modifications, hedge accounting, and other transactions, to simplify the accounting for transitioning from the London Interbank Offered Rate, and other interbank offered rates expected to be discontinued, to alternative reference rates. The guidance in this update was effective upon its issuance; if elected, it is to be applied prospectively through December 31, 2022. We are currently evaluating the effect the potential adoption of this ASU will have on our consolidated financial statements, including but not limited to our credit agreement. For additional information regarding our credit agreement, refer to Note 8 - Debt. In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies the accounting for certain financial instruments with characteristics of liability and equity, including convertible instruments and contracts on an entity’s own equity. The standard reduces the number of models used to account for convertible instruments, removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, and requires the if-converted method for calculation of diluted earnings per share for all convertible instruments. The standard is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. We are evaluating the impact to our financial statements and expect that the resulting impact will be to reclassify the equity component of our 2026 Convertible Notes (as defined below) from additional paid-in capital to long-term debt, up to the par value, and a reduction of our reported interest expense on our 2026 Convertible Notes to their stated 0.25% percent coupon rate on a prospective basis. For additional information regarding our debt, refer to Note 8 - Debt.
|
Revenue |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | . REVENUE Disaggregation of Revenue We disaggregate revenue from contracts with customers by markets and geography, as we believe it best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The following tables present our revenue disaggregated by markets and geography (in thousands):
(1)Asia Pacific represents Taiwan, Japan, Singapore, India, Thailand, South Korea, Australia, Malaysia, the Philippines and Vietnam. (2)No country or region represented greater than 10% of our total revenue as of the dates presented, other than the United States, China and Asia Pacific region as presented above. Contract Balances We record contract assets or contract liabilities depending on the timing of revenue recognition, billings and cash collections on a contract-by-contract basis. Our contract liabilities primarily relate to deferred revenue, including advanced consideration received from customers for contracts prior to the transfer of control to the customer, and therefore revenue is subsequently recognized upon delivery of products and services. The following table presents the changes in contract liabilities during the six months ended April 2, 2021 (in thousands, except percentage):
As of April 2, 2021 and October 2, 2020, $4.8 million and $3.5 million, respectively, of our contract liabilities, were recorded as other long-term liabilities on our balance sheet with the remainder recorded as accrued liabilities. During the three and six months ended April 2, 2021, we recognized net sales of $0.7 million and $6.0 million, respectively, that were included in the contract liabilities balance as of the beginning of the period. The decrease in contract liabilities during the six months ended April 2, 2021, as shown in the table above, was primarily related to recognition of license revenue, partially offset by the deferral of revenue for invoiced products and services prior to when certain of our customers obtained control of the product and or services.
|
Short Term Investments |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 03, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | INVESTMENTS Our short-term investments are classified as available-for-sale and are summarized in the tables below (in thousands):
The contractual maturities of available-for-sale investments were as follows (in thousands):
Available-for-sale investments are reported at fair value and, as such, their associated unrealized gains and losses are reported as a separate component of stockholders’ equity within accumulated other comprehensive income. Other Investments — As of April 2, 2021, we held two non-marketable equity investments classified as long-term investments, including an investment in a Series B preferred stock ownership of a privately held manufacturing corporation with preferred liquidation rights over other equity shares. As the equity securities do not have a readily determinable fair value and do not qualify for the practical expedient under Accounting Standards Codification ("ASC") 820, Fair Value Measurement, we have elected to account for this investment at cost less any impairment. We evaluate this investment for impairment at each balance sheet date. As of April 2, 2021 and October 2, 2020, the carrying value of this investment was $2.5 million. Also included in long-term investments, is a non-controlling investment of less than 20% in the outstanding equity of a private company (“Compute”) that was acquired in conjunction with our divestiture of the Compute business during our fiscal year 2018. This investment value is updated quarterly based on our proportionate share of the losses or earnings, as well as any changes in Compute's equity, utilizing the equity method. During the three and six months ended April 2, 2021, we recorded income of $6.5 million and $1.7 million, respectively, associated with this investment as other income (expense) in our condensed consolidated statements of operations. Amounts for the three and six months ended April 2, 2021 include a non-cash gain of $9.8 million associated with changes in Compute's equity. During the three and six months ended April 3, 2020, we recorded losses of $5.3 million and $9.1 million, respectively. As of April 2, 2021 and October 2, 2020, the carrying value of this investment was $17.0 million and $15.2 million, respectively.
|
Inventories |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | INVENTORIES Inventories consist of the following (in thousands):
|
Property, Plant and Equipment |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment | PROPERTY AND EQUIPMENT Property and equipment consists of the following (in thousands):
|
Intangible Assets |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets | INTANGIBLE ASSETS Amortization expense related to intangible assets is as follows (in thousands):
Intangible assets consist of the following (in thousands):
A summary of the activity in gross intangible assets and goodwill is as follows (in thousands):
As of April 2, 2021, our estimated amortization of our intangible assets in future fiscal years was as follows (in thousands):
Accumulated amortization for acquired technology and customer relationships were $159.7 million and $161.5 million, respectively, as of April 2, 2021, and $152.1 million and $145.7 million, respectively, as of October 2, 2020.
|
Debt |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | DEBT The following represents the outstanding balances and effective interest rates of our borrowings as of April 2, 2021, (in thousands, except percentages):
Term Loans As of April 2, 2021, we are party to a credit agreement dated as of May 8, 2014 with a syndicate of lenders and Goldman Sachs Bank USA (“Goldman Sachs”), as administrative agent (as amended on February 13, 2015, August 31, 2016, March 10, 2017, May 19, 2017, May 2, 2018 and May 9, 2018, the “Credit Agreement”). As of April 2, 2021, the Credit Agreement consisted of term loans with an initial aggregate principal amount of $700.0 million (the “Term Loans”) and a revolving credit facility with an aggregate borrowing capacity of $160.0 million (the “Revolving Facility”). The Revolving Facility will mature in November 2021 and the Term Loans will mature in May 2024 and bear interest at: (i) for LIBOR loans for any interest period, a rate per annum equal to the LIBOR rate as determined by the administrative agent, plus an applicable margin of 2.25%; and (ii) for base rate loans, a rate per annum equal to the greater of (a) the prime rate quoted in the print edition of the Wall Street Journal, Money Rates Section, (b) the federal funds rate plus one-half of 1.00% and (c) the LIBOR rate applicable to a one-month interest period plus 1.00% (but, in each case, not less than 1.00%), plus an applicable margin of 1.25%. During the fiscal quarter ended April 2, 2021, we repaid $494.3 million in principal under the Term Loans using $394.3 million of the net proceeds from our 2026 Convertible Notes offering, described below, as well as existing cash and short-term investments. In connection with this prepayment, we wrote off unamortized deferred financing costs and recognized a loss on extinguishment of debt of $3.8 million for the three and six months ended April 2, 2021. The $3.8 million is a non-cash adjustment to income from operations in our condensed consolidated statements of cash flows for the six months ended April 2, 2021. As of April 2, 2021, there are no minimum principal repayments on the Term Loans until 2024 when the remaining principal balance of $170.1 million becomes due. The fair value of the Term Loans was estimated to be approximately $168.4 million as of April 2, 2021 and was determined using Level 2 inputs, including a quoted price from a financial institution. As of April 2, 2021, approximately $1.7 million of deferred financing costs remain unamortized, of which $1.5 million is related to the Term Loans and is recorded as a direct reduction of the recognized debt liabilities in our accompanying condensed consolidated balance sheet, and $0.2 million is related to the Revolving Facility and is recorded in other long-term assets in our accompanying condensed consolidated balance sheet. The Term Loans and Revolving Facility are secured by a first priority lien on substantially all of our assets and provide that we must comply with certain financial and non-financial covenants. In the event that we divest a business, the net cash proceeds of the divestment are generally required, subject to certain exceptions, to be applied to repayment of outstanding Term Loans except to the extent we reinvest such proceeds in assets useful for our business within 18 months of receiving the proceeds. If we enter into a binding agreement to reinvest such proceeds within 18 months of receiving them, we have until the later of 18 months following our receipt of the proceeds and six months following the date of such agreement to complete the reinvestment. As of April 2, 2021, we had $160.0 million of borrowing capacity under our Revolving Facility, of which we may borrow up to $50.0 million without being subject to certain financial covenants. 2026 Convertible Notes On March 25, 2021, we issued 0.25% convertible senior notes due in 2026, pursuant to an Indenture dated as of such date (the “Indenture”), between the Company and U.S. Bank National Association, as trustee, with an aggregate principal amount of $400.0 million (the “2026 Convertible Notes”), including an option for the initial purchaser of the 2026 Convertible Notes to purchase up to an additional $60.0 million principal amount of the 2026 Convertible Notes in a private placement to “qualified institutional buyers” pursuant to Rule144A under the Securities Act of 1933, as amended. The 2026 Convertible Notes will mature on March 15, 2026, unless earlier converted, redeemed or repurchased. Holders of the 2026 Convertible Notes may convert their notes at their option at any time prior to the close of business on the business day immediately preceding December 15, 2025 in multiples of $1,000 principal amount, only under the following circumstances: (i) during any fiscal quarter commencing after the fiscal quarter ending on July 2, 2021 (and only during such fiscal quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price for the notes on each applicable trading day; (ii) during the five business day period after any five consecutive trading day period (the “Measurement Period”) in which the “trading price” (as defined in the Indenture) per $1,000 principal amount of the notes for each trading day of the Measurement Period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate for the notes on each such trading day; (iii) if we call such notes for redemption, at any time prior to the close of business on the second scheduled trading day immediately preceding the applicable redemption date; or (iv) upon the occurrence of specified corporate events described in the Indenture. On or after December 15, 2025 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their notes in multiples of $1,000 principal amount, regardless of the foregoing circumstances. The initial conversion rate for the 2026 Convertible Notes is 12.1767 shares of common stock per $1,000 principal amount of the notes, equivalent to an initial conversion price of approximately $82.12 per share of common stock. The conversion rate will be subject to adjustment upon the occurrence of certain specified events in the Indenture. Upon conversion of the 2026 Convertible Notes, we will pay or deliver, as the case may be, cash, shares of our common stock or a combination of cash and shares of our common stock, at our election (subject to, and in accordance with, the settlement provisions of the Indenture). We may not redeem the notes prior to March 20, 2024. We may redeem for cash all or any portion of the notes, at our option, on or after March 20, 2024 if the last reported sale price per share of our common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date on which we provide notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption, at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest, to, but not including, the redemption date. The Indenture does not contain any financial or operating covenants or restrictions on the payments of dividends, the making of investments, the incurrence of indebtedness or the purchase or prepayment of securities by us or any of our subsidiaries. The proceeds from the issuance of the 2026 Convertible Notes have been allocated between the conversion feature recorded as equity and the liability for the notes themselves. The carrying amount of the liability component was calculated by measuring the fair value of a similar debt instrument that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the par value of the 2026 Convertible Notes. The difference of $71.8 million between the principal amount of the 2026 Convertible Notes and the liability component (the “Debt Discount”) is amortized to interest expense using the effective interest method over the term of the 2026 Convertible Notes. The equity component of the 2026 Convertible Notes is included in additional paid-in capital in the consolidated balance sheet and is not remeasured as long as it continues to meet the conditions for equity classification. In accounting for the transaction costs related to the 2026 Convertible Notes, we allocated the total amount incurred of approximately $5.1 million to the liability and equity components of the 2026 Convertible Notes based on the proportion of the proceeds allocated to the debt and equity components. Issuance costs attributable to the liability component were approximately $4.2 million, were recorded as an additional Debt Discount and are amortized to interest expense over the contractual terms of the 2026 Convertible Notes. Issuance costs attributable to the equity component were approximately $0.9 million and recorded as a reduction of additional paid in capital in stockholders’ equity. For the three and six months ended April 2, 2021, accretion of the Debt Discount included in interest expense was $0.3 million and total interest expense for the 2026 Convertible Notes was $0.3 million. The fair value of our 2026 Convertible Notes, including the conversion feature, was $400.0 million as of April 2, 2021 and was determined based on quoted prices in markets that are not active, which is considered a Level 2 valuation input. There are no future minimum principal payments under the notes as of April 2, 2021; the full amount of $400.0 million is due in fiscal 2026. For additional information regarding our debt, specifically the April 6, 2021 issuance of an additional $50 million aggregate principal amount of our 2026 Convertible Notes, refer to Note 18 - Subsequent Events.
|
Stockholders' Equity |
6 Months Ended |
---|---|
Apr. 02, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | STOCKHOLDERS' EQUITY We have authorized 10 million shares of $0.001 par value preferred stock and 300 million shares of $0.001 par value common stock as of April 2, 2021. Common Stock Warrants—In March 2012, we issued warrants to purchase 1,281,358 shares of common stock for $14.05 per share. During the fiscal quarter ended January 1, 2021, Summit Partners Private Equity Fund VII-A, L.P., Summit Partners Private Equity Fund VII-B, L.P., Summit Investors I, LLC, Summit Investors I (UK), L.P. and Mainsail Partners II, L.P. made cashless exercises of warrants for 1,281,358 shares at an exercise price of $14.05 per share, resulting in the issuance of 857,631 shares of common stock. We received no proceeds from the exercise of warrants. During the six months ended April 2, 2021 and the three and six months ended April 3, 2020, we recorded the changes in the estimated fair value of the warrants in the accompanying statements of operations. See Note 4 - Fair Value for additional information related to the fair value of our warrant liability. See Note 10 - Earnings (Loss) Per Share for impact of the common stock warrants on loss per share.
|
Earnings (Loss) Per Share |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings (Loss) Per Share | 10. EARNINGS (LOSS) PER SHARE The following table sets forth the computation for basic and diluted net income (loss) per share of common stock (in thousands, except per share data):
|
Commitments and Contingencies |
6 Months Ended |
---|---|
Apr. 02, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIESFrom time to time, we may be subject to commercial disputes, employment issues, claims by other companies in the industry that we have infringed their intellectual property rights and other similar claims and litigation. Any such claims may lead to future litigation and material damages and defense costs. We were not involved in any material pending legal proceedings during the fiscal quarter ended April 2, 2021. |
Restructurings |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructurings | RESTRUCTURINGS We have periodically implemented restructuring actions in connection with broader plans to reduce staffing, reduce our internal manufacturing footprint and generally reduce operating costs. The restructuring expenses are primarily comprised of direct and incremental costs related to headcount reductions including severance and outplacement fees for the terminated employees, as well as facility closure costs. There were no restructuring charges incurred during the three and six months ended April 2, 2021. The following is a summary of the restructuring charges incurred during the three and six months ended April 3, 2020 (in thousands):
2019 Plan During the fiscal quarter ended June 28, 2019, we committed to a plan designed to strategically realign, streamline and improve certain of our business and operations, including reducing our workforce by approximately 250 employees, exiting six development facilities in France, Japan, the Netherlands, Florida, Massachusetts and Rhode Island, reducing certain development activities for one of our product lines and no longer investing in the design and development of optical modules and subsystems for Data Center applications (the “2019 Plan”). We incurred restructuring charges in the three and six months ended April 3, 2020 under the 2019 Plan, as shown above. This action was completed during fiscal 2020 and we do not expect to incur further costs. The remaining charges will be paid during fiscal 2021. Details of the 2019 Plan accrual activity for the six months ended April 2, 2021 are as follows (in thousands):
(1) Primarily includes severance charges associated with the reduction of our workforce in certain facilities. (2) Primarily includes activities associated with the closure of certain facilities, including any associated asset impairments and contract termination costs.
|
Share-Based Compensation |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement | SHARE-BASED COMPENSATION Stock Plans As of April 2, 2021, we had 6.0 million shares available for issuance under our 2021 Omnibus Incentive Plan (the “2021 Plan”), which replaced our 2012 Omnibus Incentive Plan (as amended and restated) (the “2012 Plan”), and 1.5 million shares available for issuance under our 2021 Employee Stock Purchase Plan (the “Employee Stock Purchase Plan”), which replaced our 2012 Employee Stock Purchase Plan. Under the 2021 Plan, we have the ability to issue incentive stock options (“ISOs”), non-statutory stock options (“NSOs”), stock appreciation rights ("SARs"), restricted stock awards (“RSAs”), unrestricted stock awards, stock units (including restricted stock units (“RSUs”) and performance-based restricted stock units (“PRSUs”)), performance awards, cash awards, and other share-based awards to employees, directors, consultants and advisors. The ISOs and NSOs must be granted at an exercise price, and the SARs must be granted at a base value, per share of not less than 100% of the closing price of a share of our common stock on the date of grant (or, if no closing price is reported on that date, the closing price on the immediately preceding date on which a closing price was reported) (110% in the case of certain ISOs). We have outstanding awards under the 2021 Plan, as well as the 2012 Plan. Following the adoption of the 2021 Plan, no additional awards have been or will be made under the 2012 Plan. Options granted under the 2012 Plan primarily vest based on certain market-based and performance-based criteria. Options granted generally have a term of four years to seven years. Certain of the share-based awards granted and outstanding as of April 2, 2021 are subject to accelerated vesting upon a change in control of the Company. Share-Based Compensation The following table shows a summary of share-based compensation expense included in the condensed consolidated statements of operations (in thousands):
As of April 2, 2021, the total unrecognized compensation costs related to RSAs, RSUs and PRSUs was $53.7 million, which we expect to recognize over a weighted-average period of 2.3 years. As of April 2, 2021, total unrecognized compensation cost related to our 2012 Employee Stock Purchase Plan was $0.2 million. Stock Options A summary of stock option activity for the six months ended April 2, 2021 is as follows (in thousands, except per share amounts and contractual term):
Aggregate intrinsic value represents the difference between our closing stock price on April 2, 2021 and the exercise price of outstanding, in-the-money options. The total intrinsic value of options exercised was $1.8 million and $2.1 million for the three and six months ended April 2, 2021, respectively, and was $0.3 million for the three and six months ended April 3, 2020. Restricted Stock, Restricted Stock Units and Performance-Based Restricted Stock Unit Awards A summary of stock award activity for the six months ended April 2, 2021 is as follows:
|
Income Taxes |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | INCOME TAXES We are subject to income tax in the U.S. as well as other tax jurisdictions in which we conduct business. Earnings from non-U.S. activities are subject to local country income tax and may also be subject to current U.S. income tax. For interim periods, we record a tax provision or benefit based upon the estimated effective tax rate expected for the full fiscal year, adjusted for material discrete taxation matters arising during the interim periods. Our quarterly tax provision or benefit, and its quarterly estimate of the annual effective tax rate, are subject to significant variation due to several factors. These factors include variability in accurately predicting pre-tax income/loss, the mix of jurisdictions in which we operate, intercompany transactions, changes in how we do business, tax law developments, and relative changes in permanent tax benefits or expenses. The provision for income taxes and effective income tax rate are as follows (in thousands, except percentages):
The difference between the U.S. federal statutory income tax rate of 21% and our effective income tax rates for the three and six months ended April 2, 2021 and April 3, 2020 was primarily driven by the continuation of a full valuation allowance against any benefit associated with losses in the U.S. and income taxed in foreign jurisdictions generally at lower tax rates and where a valuation allowance does not apply. We recognize deferred tax assets to the extent that we believe that these assets are more likely than not to be realized. In making this determination, we consider available positive and negative evidence. We look at factors that may impact the valuation of our deferred tax asset including results of recent operations, future reversals of existing taxable temporary differences, projected future taxable income, and tax-planning strategies. We have determined that there was not sufficient objectively verifiable positive evidence to offset our significant negative objective evidence, therefore, we concluded that a full valuation allowance is appropriate for our U.S. deferred tax assets. Our negative objective evidence consists primarily of adjusted cumulative losses in the U.S. over the three-year period ended April 2, 2021. Our deferred income tax asset balance as of April 2, 2021 and October 2, 2020 is primarily attributable to an initial $39.8 million deferred asset generated from an intra-entity transfer of a license for intellectual property during the fiscal quarter ended September 27, 2019. We expect this deferred tax asset to amortize over the life of the intellectual property. The balance of the unrecognized tax benefits was $0.3 million as of April 2, 2021 and October 2, 2020. It is our policy to recognize any interest and penalties accrued related to unrecognized tax benefits in income tax expense. During the fiscal quarter ended April 2, 2021, we did not make any accrual or payment of interest or penalties, nor did we make any payment, because we believe our $0.3 million accrual would cover any additional amounts due.
|
Geographic and Significant Customer Information |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Geographic and Significant Customer Information | GEOGRAPHIC AND SIGNIFICANT CUSTOMER INFORMATION We have one reportable operating segment that designs, develops, manufactures and markets semiconductors and modules. The determination of the number of reportable operating segments is based on the chief operating decision maker’s use of financial information for the purposes of assessing performance and making operating decisions. In evaluating financial performance and making operating decisions, the chief operating decision maker primarily uses consolidated metrics. We evaluate this assessment on an ongoing basis as facts and circumstances change and as of April 2, 2021 there were no changes to our conclusion. For information about our revenue in different geographic regions, based upon customer locations, see Note 2 - Revenue. Information about net property and equipment in different geographic regions is presented below (in thousands):
(1)Europe primarily represents Finland, France, Germany, Ireland and Italy. (2)Other than the United States and Europe, no country or region represented greater than 10% of the total net property and equipment as of the dates presented. The following is a summary of customer concentrations as a percentage of revenue and accounts receivable as of and for the periods presented:
Customer B did not represent more than 10% of our revenue in the three and six months ended April 2, 2021. No other customer represented more than 10% of revenue or accounts receivable in the periods presented in the accompanying condensed consolidated financial statements. For the three and six months ended April 2, 2021 our top ten customers represented 52% and 53%, respectively, of total revenue, and for the three and six months ended April 3, 2020, our top ten customers represented 58% and 59%, respectively, of total revenue.
|
Related-Party Transactions |
6 Months Ended |
---|---|
Apr. 02, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED-PARTY TRANSACTIONSDuring the six months ended April 3, 2020, we sold $0.2 million of commercial products to Mission Microwave Technologies, LLC (“Mission”), a MACOM customer and an affiliate of directors John and Susan Ocampo. Together, Mr. and Mrs. Ocampo are MACOM's largest stockholders. Stephen G. Daly, MACOM's President and Chief Executive Officer, has an equity interest of less than 1% in Mission. |
Subsequent Events |
6 Months Ended |
---|---|
Apr. 02, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTSOn April 6, 2021, we issued an additional $50.0 million aggregate principal amount of our 2026 Convertible Notes (the “Additional Notes”) out of the total $60.0 million that was allotted in the agreement. The Additional Notes were issued and sold to the initial purchaser of the 2026 Convertible Notes, pursuant to the option to purchase the Additional Notes granted by the Company to the initial purchaser. The Additional Notes were exercised by the initial purchaser on April 1, 2021 and have the same terms as the 2026 Convertible Notes. Total proceeds were $49.4 million at issuance, and on April 8, 2021, we used $49.3 million of the proceeds to pay down our Term Loans to a remaining principal balance of $120.8 million. No additional 2026 Convertible Notes will be issued and the aggregate principal balance will be $450 million. For additional information regarding our debt, refer to Note 8 - Debt. |
Summary of Significant Accounting Policies (Policies) |
6 Months Ended |
---|---|
Apr. 02, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation—The accompanying condensed consolidated financial statements include our accounts and the accounts of our majority-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Fiscal Period, Policy [Policy Text Block] | We have a 52- or 53-week fiscal year ending on the Friday closest to the last day of September. Fiscal year 2021 includes 52 weeks and fiscal year 2020 included 53 weeks. To offset the effect of holidays, for fiscal years in which there are 53 weeks, we include the extra week arising in such fiscal years in the first fiscal quarter. Our first fiscal quarter ended January 1, 2021 included 13 weeks and the first fiscal quarter ended January 3, 2020 had 14 weeks. |
Use of Estimates | Use of Estimates—The preparation of condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities during the reporting periods, the reported amounts of revenue and expenses during the reporting periods, and the disclosure of contingent assets and liabilities at the date of the financial statements. On an ongoing basis, we base estimates and assumptions on historical experience, currently available information and various other factors that management believes to be reasonable under the circumstances. Actual results may differ materially from these estimates and assumptions. |
Revenue (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | The following tables present our revenue disaggregated by markets and geography (in thousands):
(1)Asia Pacific represents Taiwan, Japan, Singapore, India, Thailand, South Korea, Australia, Malaysia, the Philippines and Vietnam. (2)No country or region represented greater than 10% of our total revenue as of the dates presented, other than the United States, China and Asia Pacific region as presented above.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract with Customer, Asset and Liability | The following table presents the changes in contract liabilities during the six months ended April 2, 2021 (in thousands, except percentage):
|
Short Term Investments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Available for Sale Investments | Our short-term investments are classified as available-for-sale and are summarized in the tables below (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Contractual Maturities of Investments | The contractual maturities of available-for-sale investments were as follows (in thousands):
|
Fair Value (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis consist of the following (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quantitative information Used in Fair Value Calculation of Level 3 Liabilities | The quantitative information utilized in the fair value calculation of our Level 3 liabilities is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Liabilities with Inputs Classified within Level 3 of Fair Value | The changes in liabilities with inputs classified within Level 3 of the fair value hierarchy consist of the following (in thousands):
|
Inventories (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Inventories | Inventories consist of the following (in thousands):
|
Property, Plant and Equipment (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Property, Plant and Equipment | Property and equipment consists of the following (in thousands):
|
Intangible Assets (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Amortization Expense of Intangible Assets | Amortization expense related to intangible assets is as follows (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Intangible Assets | Intangible assets consist of the following (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Activity in Intangible Assets and Goodwill | A summary of the activity in gross intangible assets and goodwill is as follows (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Estimated Amortization of Intangible Assets in Future Fiscal Years | As of April 2, 2021, our estimated amortization of our intangible assets in future fiscal years was as follows (in thousands):
|
Debt (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Remained Outstanding on Term Loans | The following represents the outstanding balances and effective interest rates of our borrowings as of April 2, 2021, (in thousands, except percentages):
|
Earnings (Loss) Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation for Basic and Diluted Net Loss Per Share of Common Stock | The following table sets forth the computation for basic and diluted net income (loss) per share of common stock (in thousands, except per share data):
|
Restructurings - (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Costs | The following is a summary of the restructuring charges incurred during the three and six months ended April 3, 2020 (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost | Details of the 2019 Plan accrual activity for the six months ended April 2, 2021 are as follows (in thousands):
(1) Primarily includes severance charges associated with the reduction of our workforce in certain facilities. (2) Primarily includes activities associated with the closure of certain facilities, including any associated asset impairments and contract termination costs.
|
Share-Based Compensation (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effects of Stock-Based Compensation Expense Related to Stock-Based Awards to Employees and Nonemployees | The following table shows a summary of share-based compensation expense included in the condensed consolidated statements of operations (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement, Option, Activity [Table Text Block] | A summary of stock option activity for the six months ended April 2, 2021 is as follows (in thousands, except per share amounts and contractual term):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Restricted Stock, Restricted Stock Unit and Performance-based Restricted Stock Unit Activity | A summary of stock award activity for the six months ended April 2, 2021 is as follows:
|
Geographic and Significant Customer Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-lived Assets by Geographic Areas | For information about our revenue in different geographic regions, based upon customer locations, see Note 2 - Revenue. Information about net property and equipment in different geographic regions is presented below (in thousands):
(1)Europe primarily represents Finland, France, Germany, Ireland and Italy. (2)Other than the United States and Europe, no country or region represented greater than 10% of the total net property and equipment as of the dates presented.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Revenue by Major Customers by Reporting Segments | The following is a summary of customer concentrations as a percentage of revenue and accounts receivable as of and for the periods presented:
|
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Apr. 02, 2021 |
Oct. 02, 2020 |
|
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Fiscal Period, Policy [Policy Text Block] | We have a 52- or 53-week fiscal year ending on the Friday closest to the last day of September. Fiscal year 2021 includes 52 weeks and fiscal year 2020 included 53 weeks. To offset the effect of holidays, for fiscal years in which there are 53 weeks, we include the extra week arising in such fiscal years in the first fiscal quarter. Our first fiscal quarter ended January 1, 2021 included 13 weeks and the first fiscal quarter ended January 3, 2020 had 14 weeks. | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | $ 171 | $ 347 |
Accounts Receivable, Allowance for Credit Loss | $ 100 | |
Basis spread on variable rate | 25.00% |
Investments - Summary of Available for Sale Investments (Details) - USD ($) $ in Thousands |
Apr. 02, 2021 |
Oct. 02, 2020 |
---|---|---|
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 162,557 | $ 203,518 |
Gross Unrealized Holding Gains | 168 | 540 |
Gross Unrealized Holding Losses | 171 | 347 |
Aggregate Fair Value | 162,554 | 203,711 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 58,240 | 68,605 |
Gross Unrealized Holding Gains | 151 | 348 |
Gross Unrealized Holding Losses | 152 | 333 |
Aggregate Fair Value | 58,239 | 68,620 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 104,317 | 134,913 |
Gross Unrealized Holding Gains | 17 | 192 |
Gross Unrealized Holding Losses | 19 | 14 |
Aggregate Fair Value | $ 104,315 | $ 135,091 |
Investments - Summary of Contractual Maturities of Investments (Details) - USD ($) $ in Thousands |
Apr. 02, 2021 |
Oct. 02, 2020 |
---|---|---|
Investments, Debt and Equity Securities [Abstract] | ||
Less than one year | $ 104,315 | |
Over one year | 58,239 | |
Total available-for-sale investments | $ 162,554 | $ 203,711 |
Investments - Other Investments (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Apr. 02, 2021 |
Apr. 03, 2020 |
Apr. 02, 2021 |
Apr. 03, 2020 |
Oct. 02, 2020 |
|
Equity Securities without Readily Determinable Fair Value [Line Items] | |||||
Income (Loss) from Equity Method Investments | $ 1,738 | $ (9,066) | |||
Non-Cash Equity Method Gain | 9,800 | ||||
Equity Securities | Compute | |||||
Equity Securities without Readily Determinable Fair Value [Line Items] | |||||
Equity Method Investments | $ 17,000 | 17,000 | $ 15,200 | ||
Income (Loss) from Equity Method Investments | 6,500 | $ (5,300) | 1,700 | $ (9,100) | |
Preferred Stock | Privately Held Manufacturing Company | |||||
Equity Securities without Readily Determinable Fair Value [Line Items] | |||||
Investment cost basis | $ 2,500 | $ 2,500 | $ 2,500 | ||
Compute | Equity Securities | |||||
Equity Securities without Readily Determinable Fair Value [Line Items] | |||||
Noncontrolling interest ownership percentage | 20.00% | 20.00% |
Fair Value - Changes in Assets and Liabilities with Inputs Classified within Level 3 of Fair Value (Details) - Common stock warrant liability - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Apr. 02, 2021 |
Apr. 03, 2020 |
|
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | $ 25,312 | $ 12,364 |
Net Realized Losses Included in Earnings | 11,130 | (4,560) |
Purchases and Issuances | 0 | 0 |
Sales and Settlements | (36,442) | 0 |
Balance at end of period | $ 0 | $ 7,804 |
Inventories (Details) - USD ($) $ in Thousands |
Apr. 02, 2021 |
Oct. 02, 2020 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 44,680 | $ 46,954 |
Work-in-process | 12,000 | 9,324 |
Finished goods | 27,836 | 35,306 |
Total inventory, net | $ 84,516 | $ 91,584 |
Property Plant and Equipment - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Apr. 02, 2021 |
Apr. 03, 2020 |
Apr. 02, 2021 |
Apr. 03, 2020 |
Oct. 02, 2020 |
|
Property, Plant and Equipment [Abstract] | |||||
Depreciation and amortization expense | $ 6,000 | $ 7,300 | $ 12,200 | $ 14,700 | |
Accumulated depreciation | $ 177,254 | $ 177,254 | $ 165,850 |
Intangible Assets - Summary of Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Apr. 02, 2021 |
Apr. 03, 2020 |
Apr. 02, 2021 |
Apr. 03, 2020 |
|
Finite-Lived Intangible Assets [Line Items] | ||||
Total | $ 11,407 | $ 12,419 | $ 23,400 | $ 25,493 |
Cost of Revenue | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Total | 3,806 | 4,347 | 7,683 | 8,767 |
Selling, General and Administrative | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Total | $ 7,601 | $ 8,072 | $ 15,717 | $ 16,726 |
Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands |
Apr. 02, 2021 |
Oct. 02, 2020 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Trade name (indefinite-lived) | $ 3,400 | $ 3,400 |
Total | 428,704 | 428,704 |
Less accumulated amortization | (321,205) | (297,806) |
Intangible assets — net | 107,499 | 130,898 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets | 179,434 | 179,434 |
Less accumulated amortization | (159,700) | (152,100) |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets | 245,870 | 245,870 |
Less accumulated amortization | $ (161,500) | $ (145,700) |
Intangible Assets - Summary of Activity in Intangible Assets and Goodwill (Details) $ in Thousands |
6 Months Ended |
---|---|
Apr. 02, 2021
USD ($)
| |
Goodwill and Intangible Assets [Roll Forward] | |
Beginning Balance | $ 428,704 |
Currency translation adjustment | 0 |
Intangible Assets, Net (Including Goodwill) | 314,377 |
Ending Balance | 428,704 |
Goodwill [Roll Forward] | |
Balance at beginning of period | 315,012 |
Currency translation adjustment | (635) |
Balance at end of period | 314,377 |
Trade Names | |
Indefinite Lived Intangible Assets Rollforward [Roll Forward] | |
Beginning Balance | 3,400 |
Currency translation adjustment | 0 |
Ending Balance | 3,400 |
Developed technology | |
Finite-lived Intangible Assets [Roll Forward] | |
Beginning Balance | 179,434 |
Currency translation adjustment | 0 |
Ending Balance | 179,434 |
Customer relationships | |
Finite-lived Intangible Assets [Roll Forward] | |
Beginning Balance | 245,870 |
Currency translation adjustment | 0 |
Ending Balance | $ 245,870 |
Intangible Assets - Summary of Estimated Amortization of Intangible Assets (Details) $ in Thousands |
Apr. 02, 2021
USD ($)
|
---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |
2021 Remaining | $ 22,814 |
2022 | 33,433 |
2023 | 26,048 |
2024 | 15,410 |
2025 | 3,489 |
Thereafter | 2,905 |
Total | $ 104,099 |
Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands |
Apr. 02, 2021 |
Oct. 02, 2020 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated amortization | $ 321,205 | $ 297,806 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated amortization | 159,700 | 152,100 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated amortization | $ 161,500 | $ 145,700 |
Debt - Schedule of Remaining Outstanding Balances on Term Loans (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Apr. 02, 2021 |
Mar. 25, 2021 |
|
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 25.00% | |
Estimated fair value of Term Loans | $ 400,000 | |
Principal Balance | ||
Long-term debt | $ 498,596 | |
Less: Unamortized discount and deferred financing costs | (6,423) | |
Total long-term debt | $ 492,173 | |
Long-term Debt | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.25% | |
Estimated fair value of Term Loans | $ 168,400 | |
Principal Balance | ||
Long-term debt | $ 170,066 | |
Effective Interest Rate | ||
Effective interest rate | 2.36% | |
Convertible Debt | ||
Principal Balance | ||
Long-term debt | $ 328,530 | |
Effective Interest Rate | ||
Effective interest rate | 4.25% |
Stockholders' Equity - Additional Information (Details) - $ / shares |
6 Months Ended | |
---|---|---|
Apr. 02, 2021 |
Mar. 31, 2012 |
|
Equity [Abstract] | ||
Preferred stock, shares authorized | 10,000,000 | |
Preferred stock, par value (in usd per share) | $ 0.001 | |
Common stock, shares authorized | 300,000,000 | |
Common stock, par value (in usd per share) | $ 0.001 | |
Class of Warrant or Right [Line Items] | ||
Common stock warrants (in shares) | 1,281,358 | |
Conversion of Stock, Shares Issued | 857,631 | |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 1,281,358 | |
Common stock warrants per share (in usd per share) | $ 14.05 |
Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Apr. 02, 2021 |
Apr. 03, 2020 |
Apr. 02, 2021 |
Apr. 03, 2020 |
|
Earnings Per Share [Abstract] | ||||
Fair Value Adjustment of Warrants | $ 0 | $ (8,647) | $ 11,130 | $ (4,560) |
Numerator: | ||||
Net income (loss) | 14,807 | (10,226) | 5,839 | (38,588) |
Warrant liability gain | 0 | (8,647) | 0 | (4,560) |
Net income (loss) attributable to common stockholders | $ 14,807 | $ (18,873) | $ 5,839 | $ (43,148) |
Denominator: | ||||
Weighted average common shares outstanding-basic | 68,504,000 | 66,522,000 | 68,130,000 | 66,375,000 |
Dilutive effect of options and warrants (in shares) | 2,042,000 | 562,567 | 1,853,000 | 545,578 |
Weighted average common shares outstanding-diluted | 70,546,000 | 67,085,000 | 69,983,000 | 66,921,000 |
Earnings Per Share, Basic [Abstract] | ||||
Income (loss) per share - Basic | $ 0.22 | $ (0.15) | $ 0.09 | $ (0.58) |
Number of antidilutive shares of common stock excluded from the calculation (in shares) | 1,009,830 | 174,989 | 886,671 |
Share-Based Compensation - Effects of Stock-Based Compensation Expense Related to Stock-Based Awards to Employees and Non-Employees (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Apr. 02, 2021 |
Apr. 03, 2020 |
Apr. 02, 2021 |
Apr. 03, 2020 |
|
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | $ 8,569 | $ 10,276 | $ 18,700 | $ 18,426 |
Cost of Revenue | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | 833 | 995 | 1,705 | 1,957 |
Research and Development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | 3,431 | 4,111 | 6,985 | 7,018 |
Selling, General and Administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | $ 4,305 | $ 5,170 | $ 10,010 | $ 9,451 |
Share-Based Compensation - Summary of Restricted Stock, Restricted Stock Unit and Performance-based Restricted Stock Unit Activity (Details) shares in Thousands |
6 Months Ended |
---|---|
Apr. 02, 2021
$ / shares
shares
| |
Number of shares (in thousands) | |
Balance at beginning of period (in shares) | shares | 2,788 |
Granted (in shares) | shares | 932 |
Vested and released (in shares) | shares | (1,222) |
Forfeited, canceled or expired (in shares) | shares | (93) |
Balance at end of period (in shares) | shares | 2,405 |
Weighted- Average Grant Date Fair Value | |
Balance at beginning of period (in usd per share) | $ / shares | $ 20.84 |
Granted (in usd per share) | $ / shares | 30.24 |
Vested and released (in usd per share) | $ / shares | 21.46 |
Forfeited, canceled or expired (in usd per share) | $ / shares | 25.26 |
Balance at end of period (in usd per share) | $ / shares | $ 23.99 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Apr. 02, 2021 |
Apr. 03, 2020 |
Apr. 02, 2021 |
Apr. 03, 2020 |
|
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 2,193 | $ 1,580 | $ 2,867 | $ 2,966 |
Effective income tax rate | 12.90% | (18.30%) | 32.90% | (8.30%) |
Effective tax rate | 21.00% | |||
Deferred tax assets | $ 39,800 | $ 39,800 | ||
Unrecognized tax benefit | $ 300 | $ 300 |
Geographic and Significant Customer Information - Additional Information (Details) |
6 Months Ended |
---|---|
Apr. 02, 2021
segment
| |
Segment Reporting [Abstract] | |
Number of reportable operating segment | 1 |
Geographic and Significant Customer Information - Summary of Different Geographic Regions (Details) - USD ($) $ in Thousands |
Apr. 02, 2021 |
Oct. 02, 2020 |
---|---|---|
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | $ 114,253 | $ 118,866 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | 96,714 | 99,118 |
Other Countries | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | 4,725 | 6,619 |
Europe | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | $ 12,814 | $ 13,129 |
Geographic and Significant Customer Information - Summary of Customer Concentrations as Percentage of Revenue and Accounts Receivable (Details) - Customer Concentration Risk |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Apr. 02, 2021 |
Apr. 03, 2020 |
Apr. 02, 2021 |
Apr. 03, 2020 |
|
Revenue | ||||
Revenue from External Customer [Line Items] | ||||
Concentration risk, percentage | 52.00% | 58.00% | 53.00% | 59.00% |
Revenue | Customer A | ||||
Revenue from External Customer [Line Items] | ||||
Concentration risk, percentage | 13.00% | 15.00% | 13.00% | 15.00% |
Revenue | Customer B | ||||
Revenue from External Customer [Line Items] | ||||
Concentration risk, percentage | 0.00% | 11.00% | 0.00% | 10.00% |
Accounts Receivable | Customer A | ||||
Revenue from External Customer [Line Items] | ||||
Concentration risk, percentage | 17.00% | 20.00% |
Related-Party Transactions (Details) $ in Millions |
6 Months Ended |
---|---|
Apr. 03, 2020
USD ($)
| |
Director | |
Related Party Transaction [Line Items] | |
Related Party Transaction, Other Revenues from Transactions with Related Party | $ 0.2 |
Subsequent Events (Details) - USD ($) |
6 Months Ended | ||
---|---|---|---|
Apr. 08, 2021 |
Apr. 06, 2021 |
Apr. 02, 2021 |
|
Subsequent Event [Line Items] | |||
Proceeds from net of issuance costs | $ 394,300,000 | ||
Long-term debt | 498,596,000 | ||
Repayments of debt | $ 494,300,000 | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Principle amount | $ 450,000,000 | ||
Subsequent Event | Convertible Notes Green Shoe | |||
Subsequent Event [Line Items] | |||
Principle amount | $ 50,000,000.0 | ||
Proceeds from net of issuance costs | 49,400,000 | ||
Long-term debt | 120,800,000 | ||
Repayments of debt | $ 49,300,000 | ||
Subsequent Event | Convertible Notes Green Shoe | Convertible Senior Notes Due 2026 | |||
Subsequent Event [Line Items] | |||
Principle amount | 50,000,000 | ||
Subsequent Event | Convertible Note Additional Purchase Option | Convertible Senior Notes Due 2026 | |||
Subsequent Event [Line Items] | |||
Principle amount | $ 60,000,000.0 |
Label | Element | Value |
---|---|---|
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | $ 75,519,000 |
Y*#T#&B?/,K$A)K<)@$/?K3O
M ,&")3VQO*$HX&2K+HE#+PAUJ%O!9]K G/;/FL]P\R??%%]WD-EXA<^]#,]#
M??[G9*6-@G7_%P+9+2"[&63W#.1,^BGL1D.6ARVO"AAN[CKM+PB+7L&BUXS%
MEY0IPY4XD&>^E &ULK5;?;]HP$/Y73M$>-FEM0H"0
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MYLP4<$V%A1O97!"7Z3-8T-W):X&@5O "P!VNF 'AE^/REH7SR>
MEBXD6U!>[( 9X;MIN_MP9>=,AH-"$+$">#21Y$F.'*RL/#N/ZV.K<4==(I?W
M5//&0]?<.3*C.L6?->:2>6CH/3,PRS+=5([#F3M"$(8:_T+GQ&[6NG\0S.87
M00\F<=AO[XGOWMP5"ML89$[;_+&7?BBA^)WF2F'DS@=I]W- A9UIZT!QMXF*
MLEO6A,QG _A!,!P15^=3109[D&4<%%E!XXL25487OA_WB'<%=GGJ(G5Z/O
M),B$,?=,0DLE*3ZUO*%*>Q4II5E")>!O#<,SK<&UCH;ESYL8P*EIEH9Y?=
M[F[RF[4#SX-X.S9>";/B-E:X)-5P,$Z#MI2V"Z=K/_XLM*-ARG\65")H6(#.
MEUJ[[8(-[.;AZ7]02P,$% @ 4X"=4E +WZ)] @ (04 !D !X;"]W
M;W)K $H52/S5->1CC*SB0JTBHY/=R/'PXY\:^D0*H-KJ[\#I6I<9)4[S
MR/CIU6+&?78+987"X71GDZ3J 71#CVQP(-AI $!-GR
MLD#)Q=SVNWDV?T(
L^CW2S(?\U+>F
M.ADY/V#. EEH=="?LF:N\I ,KSIH:Z!-?'6!I9+18- CB#5#5PQIWD1^XG1
M;])O%G"QSJ%KN.
F>#J-0F(>-5;6?
MSFME:=;[94F/*VHG0/>%4O:P<0;:YWKV-U!+ P04 " !3@)U24DNJO?0"
M ";!@ & 'AL+W=OUN.WGGS&2&?D&IV>#8*FBGO%JLJ/
MG[6R-,R\6-#? [4SH/-,*;M77(#V?S3[!5!+ P04 " !3@)U2#5$=?K\"
M B!@ & 'AL+W=O.+KPGE#/!IHML8Y
MNH5^-+2+6Y2GKEM%_+M?.6T3_OZ\HS4:E65":_7UWO2XXI=L/OWSX^
P-N+K@\?<.% 5#E
Q\)5]16J4YFFE@B="Y@W0'7G;@Z /P"&Z5
MM*6!:YEA]B<^H$+Z:J)]-]T!F$
M%1;6:> T?,4;K"JGB,SXLM/9ZZYT@H?SO?:?O._DRYP;O%'5[Z*TJZM>WH,2
M%[RI[(/:_(P[?U*GKU"5\5_8M&?3N =%8ZRJ=\)D02UD._*G'0X' GGXB@#;
M"3!O=WN1M_(=MWPRUFH#VITF;6[B7?729)R0+B@SJ^FO(#D[N966RZ685PA3
M8]":\<"26O=S4.Q47+K!=KQO1F1\12[ZW/
MR\9WSJC_NEWXUL$%_OL(\7E/?,[$YS^HLR=V_?SV#_7'RJAE4R(4;'T'IT8@
M>5.W7K5X@9CQK:X+>K70I:YSXQ6>E5DN#7NOLG5KL*553K=XV2RQ"6[9.,<4
ML9Q_A#IMJ8(Z,W5F:QS0=![$?*;,M]RL6[4V+L?9"#U__F+8\M'9.K=K7:JW
MPH/ZN3_^0SS^$XY7OWYX^X]/:EUV7DU'T\N?%%Y6JFQTK8K.J-_T(YT_5Z=J
M
LU]YW\F7%3,X
M4^*!IS8;M08M2''-2F%OU>XCUO[T'5^BA/&_L*ML8SHQ*8U5>0VF=