x | Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
o | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Delaware | 94-2276314 | |
(State or other jurisdiction of incorporation or organization) | (I. R. S. Employer Identification No.) |
1550 Buckeye Drive, Milpitas, CA | 95035 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | o | Accelerated filer | x | |||
Non-accelerated filer | o (Do not check if a smaller reporting company) | Smaller reporting company | o |
Page | |||
Item 1. | |||
Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three Month and Six Month Periods Ended June 29, 2013 and June 30, 2012 (Unaudited) | |||
Condensed Consolidated Statements of Cash Flows for the Six Month Periods Ended June 29, 2013 and June 30, 2012 (Unaudited) | |||
Item 2. | |||
Item 3. | |||
Item 4. | |||
Item 1. | |||
Item 1A. | |||
Item 2. | |||
Item 6. | |||
ITEM 1. | FINANCIAL STATEMENTS |
June 29, 2013 | December 29, 2012 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 39,102 | $ | 62,915 | |||
Marketable securities | 47,162 | 46,993 | |||||
Accounts receivable, net of allowances of $174 and $82, respectively | 32,191 | 21,388 | |||||
Inventories | 39,248 | 39,659 | |||||
Inventories-delivered systems | 2,444 | 2,274 | |||||
Prepaid expenses and other | 8,221 | 7,492 | |||||
Deferred income tax assets | 15,083 | 8,593 | |||||
Total current assets | 183,451 | 189,314 | |||||
Property, plant and equipment, net | 43,831 | 43,213 | |||||
Goodwill | 11,255 | 11,352 | |||||
Intangible assets, net | 9,226 | 10,980 | |||||
Deferred income tax assets | 3,582 | 3,671 | |||||
Other assets | 680 | 924 | |||||
Total assets | $ | 252,025 | $ | 259,454 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 8,630 | $ | 6,398 | |||
Accrued payroll and related expenses | 5,466 | 6,670 | |||||
Deferred revenue | 11,847 | 8,485 | |||||
Other current liabilities | 8,929 | 7,822 | |||||
Income taxes payable | 244 | 424 | |||||
Current portion of debt obligations | 4,846 | 928 | |||||
Total current liabilities | 39,962 | 30,727 | |||||
Deferred revenue | 3,459 | 4,307 | |||||
Income taxes payable | 2,280 | 2,135 | |||||
Other long-term liabilities | 2,070 | 2,140 | |||||
Debt obligations | — | 4,374 | |||||
Total liabilities | 47,771 | 43,683 | |||||
Commitments and contingencies (Note 16) | |||||||
Stockholders’ equity: | |||||||
Preferred stock, $0.001 par value; 3,000,000 shares authorized; no shares issued or outstanding | — | — | |||||
Common stock, $0.001 par value, 47,000,000 shares authorized; 23,186,957 and 23,250,429, respectively, issued and outstanding | 23 | 23 | |||||
Additional paid-in capital | 238,939 | 238,326 | |||||
Accumulated deficit | (33,998 | ) | (23,850 | ) | |||
Accumulated other comprehensive income (loss) | (710 | ) | 1,272 | ||||
Total stockholders’ equity | 204,254 | 215,771 | |||||
Total liabilities and stockholders’ equity | $ | 252,025 | $ | 259,454 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 29, 2013 | June 30, 2012 | June 29, 2013 | June 30, 2012 | ||||||||||||
Net revenues: | |||||||||||||||
Products | $ | 26,533 | $ | 41,556 | $ | 39,612 | $ | 89,414 | |||||||
Service | 8,019 | 11,625 | 19,492 | 19,259 | |||||||||||
Total net revenues | 34,552 | 53,181 | 59,104 | 108,673 | |||||||||||
Costs of net revenues: | |||||||||||||||
Cost of products | 14,832 | 22,627 | 22,792 | 47,446 | |||||||||||
Cost of service | 4,593 | 5,158 | 10,041 | 10,128 | |||||||||||
Amortization of intangible assets | 647 | 637 | 1,305 | 1,274 | |||||||||||
Total costs of net revenues | 20,072 | 28,422 | 34,138 | 58,848 | |||||||||||
Gross profit | 14,480 | 24,759 | 24,966 | 49,825 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 8,321 | 7,644 | 15,768 | 15,120 | |||||||||||
Selling | 6,613 | 7,041 | 13,545 | 14,252 | |||||||||||
General and administrative | 5,507 | 5,583 | 11,019 | 11,664 | |||||||||||
Amortization of intangible assets | 195 | 195 | 393 | 387 | |||||||||||
Total operating expenses | 20,636 | 20,463 | 40,725 | 41,423 | |||||||||||
Income (loss) from operations | (6,156 | ) | 4,296 | (15,759 | ) | 8,402 | |||||||||
Other income (expense) | |||||||||||||||
Interest income | 20 | 33 | 45 | 85 | |||||||||||
Interest expense | (205 | ) | (264 | ) | (431 | ) | (533 | ) | |||||||
Other expense, net | (637 | ) | (49 | ) | (597 | ) | (224 | ) | |||||||
Total other expense, net | (822 | ) | (280 | ) | (983 | ) | (672 | ) | |||||||
Income (loss) before income taxes | (6,978 | ) | 4,016 | (16,742 | ) | 7,730 | |||||||||
Provision for (benefit from) income taxes | (2,412 | ) | (490 | ) | (6,594 | ) | 1,521 | ||||||||
Net income (loss) | $ | (4,566 | ) | $ | 4,506 | $ | (10,148 | ) | $ | 6,209 | |||||
Net income (loss) per share: | |||||||||||||||
Basic | $ | (0.20 | ) | $ | 0.19 | $ | (0.44 | ) | $ | 0.27 | |||||
Diluted | $ | (0.20 | ) | $ | 0.19 | $ | (0.44 | ) | $ | 0.26 | |||||
Shares used in per share calculation: | |||||||||||||||
Basic | 23,138 | 23,395 | 23,240 | 23,372 | |||||||||||
Diluted | 23,138 | 23,877 | 23,240 | 23,924 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 29, 2013 | June 30, 2012 | June 29, 2013 | June 30, 2012 | ||||||||||||
Net income (loss) | $ | (4,566 | ) | $ | 4,506 | $ | (10,148 | ) | $ | 6,209 | |||||
Other comprehensive income (loss): | |||||||||||||||
Change in foreign currency translation adjustment | (35 | ) | (1,164 | ) | (1,979 | ) | (918 | ) | |||||||
Net change on unrealized gains (losses) on available-for-sale investments | (8 | ) | (4 | ) | (3 | ) | (4 | ) | |||||||
Other comprehensive loss | (43 | ) | (1,168 | ) | (1,982 | ) | (922 | ) | |||||||
Comprehensive income (loss) | $ | (4,609 | ) | $ | 3,338 | $ | (12,130 | ) | $ | 5,287 |
Six Months Ended | |||||||
June 29, 2013 | June 30, 2012 | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ | (10,148 | ) | $ | 6,209 | ||
Reconciliation of net income (loss) to net cash provided by (used in) operating activities: | |||||||
Depreciation and amortization | 4,268 | 3,857 | |||||
Stock-based compensation | 3,208 | 3,054 | |||||
Excess tax benefit from equity awards | 367 | (814 | ) | ||||
Loss on disposal of fixed assets | 10 | 134 | |||||
Inventory write down | 2,764 | 1,740 | |||||
Deferred income taxes | (6,657 | ) | 995 | ||||
Changes in fair value of contingent consideration | 1,000 | 9 | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable | (11,095 | ) | (11,141 | ) | |||
Inventories | (4,121 | ) | (1,475 | ) | |||
Inventories-delivered systems | (170 | ) | (229 | ) | |||
Prepaid expenses and other | (109 | ) | (1,798 | ) | |||
Accounts payable, accrued and other liabilities | 1,566 | (3,060 | ) | ||||
Deferred revenue | 2,548 | 4,222 | |||||
Income taxes payable | (389 | ) | 466 | ||||
Net cash provided by (used in) operating activities | (16,958 | ) | 2,169 | ||||
Cash flows from investing activities: | |||||||
Maturities of marketable securities | 22,788 | — | |||||
Escrow payment received related to Nanda acquisition | — | 508 | |||||
Purchases of marketable securities | (23,454 | ) | (13,764 | ) | |||
Purchases of property, plant and equipment | (1,970 | ) | (2,635 | ) | |||
Net cash used in investing activities | (2,636 | ) | (15,891 | ) | |||
Cash flows from financing activities: | |||||||
Payments of contingent consideration | (216 | ) | (198 | ) | |||
Repayments of debt obligations | (456 | ) | (374 | ) | |||
Proceeds from sale of shares under employee stock option and purchase plans | 2,858 | 2,632 | |||||
Excess tax benefit from equity awards | (367 | ) | 814 | ||||
Taxes paid on net issuance of stock awards | (86 | ) | (16 | ) | |||
Repurchases of common stock | (5,000 | ) | (4,960 | ) | |||
Net cash used in financing activities | (3,267 | ) | (2,102 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | (952 | ) | 115 | ||||
Net decrease in cash and cash equivalents | (23,813 | ) | (15,709 | ) | |||
Cash and cash equivalents, beginning of period | 62,915 | 97,699 | |||||
Cash and cash equivalents, end of period | $ | 39,102 | $ | 81,990 |
June 29, 2013 | December 29, 2012 | ||||||||||||||||||||||||||||||
Fair Value Measurements Using Input Types | Fair Value Measurements Using Input Types | ||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||||||||||
Money market funds | $ | 486 | $ | — | $ | — | $ | 486 | $ | 109 | $ | — | $ | — | $ | 109 | |||||||||||||||
Commercial paper | — | — | — | — | — | 2,600 | — | 2,600 | |||||||||||||||||||||||
Municipal securities | — | 2,001 | — | 2,001 | — | — | — | — | |||||||||||||||||||||||
Total cash equivalents | 486 | 2,001 | — | 2,487 | 109 | 2,600 | — | 2,709 | |||||||||||||||||||||||
Marketable securities: | |||||||||||||||||||||||||||||||
U.S. Treasury securities and U.S. Government agency securities | 20,100 | — | — | 20,100 | 20,568 | — | — | 20,568 | |||||||||||||||||||||||
Commercial paper, corporate debt securities, and municipal securities | — | 27,062 | — | 27,062 | — | 26,425 | — | 26,425 | |||||||||||||||||||||||
Total marketable securities | 20,100 | 27,062 | — | 47,162 | 20,568 | 26,425 | — | 46,993 | |||||||||||||||||||||||
Total (1) | $ | 20,586 | $ | 29,063 | $ | — | $ | 49,649 | $ | 20,677 | $ | 29,025 | $ | — | $ | 49,702 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||
Contingent consideration payable | $ | — | $ | — | $ | 3,246 | $ | 3,246 | $ | — | $ | — | $ | 2,462 | $ | 2,462 |
Changes in Level 3 liabilities | |||
Fair value at December 29, 2012 | $ | 2,462 | |
Payments made to Zygo Corporation | (216 | ) | |
Change in fair value included in earnings | 1,000 | ||
Fair Value at June 29, 2013 | $ | 3,246 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Market Value | ||||||||||||
June 29, 2013 | |||||||||||||||
Cash | $ | 36,615 | $ | — | $ | — | $ | 36,615 | |||||||
Cash equivalents: | |||||||||||||||
Money market funds | 486 | — | — | 486 | |||||||||||
Commercial paper | — | — | — | — | |||||||||||
Municipal securities | 2,000 | 1 | — | 2,001 | |||||||||||
Marketable securities: | |||||||||||||||
Commercial paper | 1,000 | — | — | 1,000 | |||||||||||
U.S. Treasury securities | 4,999 | 1 | — | 5,000 | |||||||||||
U.S. Government agency securities | 15,103 | 2 | (5 | ) | 15,100 | ||||||||||
Municipal securities | 9,984 | 7 | (1 | ) | 9,990 | ||||||||||
Corporate debt securities | 16,085 | 2 | (15 | ) | 16,072 | ||||||||||
Total cash, cash equivalents, and short-term investments | $ | 86,272 | $ | 13 | $ | (21 | ) | $ | 86,264 | ||||||
December 29, 2012 | |||||||||||||||
Cash | $ | 60,206 | $ | — | $ | — | $ | 60,206 | |||||||
Cash equivalents: | |||||||||||||||
Money market funds | 109 | — | — | 109 | |||||||||||
Commercial paper | 2,600 | — | — | 2,600 | |||||||||||
Short-term investments: | |||||||||||||||
Commercial paper | 3,199 | — | — | 3,199 | |||||||||||
U.S. Treasury Securities | 4,996 | 1 | — | 4,997 | |||||||||||
U.S. Government agency securities | 15,567 | 6 | (2 | ) | 15,571 | ||||||||||
Municipal securities | 5,396 | 1 | (1 | ) | 5,396 | ||||||||||
Corporate debt securities | 17,837 | 2 | (9 | ) | 17,830 | ||||||||||
Total cash, cash equivalents, and short-term investments | $ | 109,910 | $ | 10 | $ | (12 | ) | $ | 109,908 |
At | |||||||
June 29, 2013 | December 29, 2012 | ||||||
Raw materials and sub-assemblies | $ | 20,782 | $ | 22,477 | |||
Work in process | 8,230 | 5,812 | |||||
Finished goods | 10,236 | 11,370 | |||||
Inventories | 39,248 | 39,659 | |||||
Inventories-delivered systems | 2,444 | 2,274 | |||||
Total inventories | $ | 41,692 | $ | 41,933 |
At | |||||||
June 29, 2013 | December 29, 2012 | ||||||
Land | $ | 15,570 | $ | 15,573 | |||
Building and improvements | 19,377 | 19,231 | |||||
Machinery and equipment | 25,136 | 21,523 | |||||
Furniture and fixtures | 2,299 | 2,228 | |||||
Capital in progress | 3,760 | 4,377 | |||||
Total property, plant and equipment, gross | 66,142 | 62,932 | |||||
Accumulated depreciation | (22,311 | ) | (19,719 | ) | |||
Total property, plant and equipment, net | $ | 43,831 | $ | 43,213 |
Adjusted cost as of | Accumulated amortization as of | Net carrying amount as of | |||||||||
June 29, 2013 | June 29, 2013 | June 29, 2013 | |||||||||
Developed technology | $ | 17,659 | $ | (9,558 | ) | $ | 8,101 | ||||
Customer relationships | 9,529 | (8,978 | ) | 551 | |||||||
Brand names | 1,927 | (1,650 | ) | 277 | |||||||
Patented technology | 2,252 | (1,955 | ) | 297 | |||||||
Trademark | 80 | (80 | ) | — | |||||||
Total | $ | 31,447 | $ | (22,221 | ) | $ | 9,226 |
Adjusted cost as of December 29, 2012 | Accumulated amortization as of December 29, 2012 | Net carrying amount as of December 29, 2012 | |||||||||
Developed technology | $ | 17,700 | $ | (8,277 | ) | $ | 9,423 | ||||
Customer relationships | 9,538 | (8,643 | ) | 895 | |||||||
Brand names | 1,927 | (1,599 | ) | 328 | |||||||
Patented technology | 2,252 | (1,922 | ) | 330 | |||||||
Trademark | 80 | (76 | ) | 4 | |||||||
Total | $ | 31,497 | $ | (20,517 | ) | $ | 10,980 |
Fiscal years | Amount | |||
2013 | $ | 1,607 | ||
2014 | 3,006 | |||
2015 | 2,324 | |||
2016 | 1,856 | |||
2017 | 227 | |||
Thereafter | 206 | |||
Total future amortization expense | $ | 9,226 |
At | |||||||
June 29, 2013 | December 29, 2012 | ||||||
Accrued warranty | $ | 3,519 | $ | 4,203 | |||
Accrued professional services | 860 | 584 | |||||
Customer deposits | 1,290 | 73 | |||||
Fair value of contingent consideration | 1,490 | 649 | |||||
Other | 1,770 | 2,313 | |||||
Total other current liabilities | $ | 8,929 | $ | 7,822 |
At | |||||||
June 29, 2013 | December 29, 2012 | ||||||
Line of Credit | |||||||
Balance on line of credit | $ | — | $ | — | |||
Debt Obligations | |||||||
Milpitas building mortgage | 4,846 | 5,302 | |||||
Total debt obligations | 4,846 | 5,302 | |||||
Current portion of debt obligations | (4,846 | ) | (928 | ) | |||
Long-term debt obligations | $ | — | $ | 4,374 |
Fiscal years | Amount | ||
2013 | $ | 472 | |
2014 | 998 | ||
2015 | 1,073 | ||
2016 | 1,153 | ||
2017 | 1,150 | ||
Thereafter | — | ||
Total loan amount | $ | 4,846 |
Three Months Ended | Six Months Ended | ||||||||||||
June 29, 2013 | June 30, 2012 | June 29, 2013 | June 30, 2012 | ||||||||||
Weighted average common shares outstanding used in basic net income (loss) per share calculation | 23,138 | 23,395 | 23,240 | 23,372 | |||||||||
Dilutive common stock equivalents, using treasury stock method | — | 482 | — | 552 | |||||||||
Shares used in diluted net income (loss) per share computation | 23,138 | 23,877 | 23,240 | 23,924 |
Three Months Ended | Six Months Ended | ||||||||||
June 29, 2013 | June 30, 2012 | June 29, 2013 | June 30, 2012 | ||||||||
Stock Options | |||||||||||
Expected life | 4.6 years | 4.2 years | 4.5 years | 4.5 years | |||||||
Volatility | 68.90 | % | 78.65 | % | 72.32 | % | 78.23 | % | |||
Risk free interest rate | 1.02 | % | 0.74 | % | 0.90 | % | 0.85 | % | |||
Dividends | — | — | — | — | |||||||
Employee Stock Purchase Plan | |||||||||||
Expected life | 0.5 years | 0.5 years | 0.5 years | 0.5 years | |||||||
Volatility | 25.94 | % | 55.93 | % | 27.61 | % | 62.74 | % | |||
Risk free interest rate | 0.10 | % | 0.06 | % | 0.11 | % | 0.06 | % | |||
Dividends | — | — | — | — |
Number of Shares Outstanding (Options) | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value (in Thousands) | ||||||||||
Options | |||||||||||||
Outstanding at December 29, 2012 | 2,020,319 | $ | 12.01 | 4.44 | $ | 6,770 | |||||||
Exercised | (181,617 | ) | 7.15 | ||||||||||
Granted | 314,100 | 15.31 | |||||||||||
Cancelled | (67,037 | ) | 14.63 | ||||||||||
Outstanding at June 29, 2013 | 2,085,765 | $ | 12.85 | 4.35 | $ | 5,757 | |||||||
Exercisable at June 29, 2013 | 1,234,828 | $ | 11.25 | 3.56 | $ | 5,127 |
Number of RSUs | Weighted Average Fair Value | |||||
Outstanding RSU as of December 29, 2012 | 235,162 | $ | 16.32 | |||
Granted | 286,060 | 15.43 | ||||
Released | (29,739 | ) | 14.62 | |||
Cancelled | (8,518 | ) | 14.27 | |||
Outstanding RSU as of June 29, 2013 | 482,965 | $ | 14.67 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 29, 2013 | June 30, 2012 | June 29, 2013 | June 30, 2012 | ||||||||||||
Cost of products | $ | 53 | $ | 20 | $ | 98 | $ | 77 | |||||||
Cost of service | 71 | 75 | 130 | 133 | |||||||||||
Research and development | 362 | 347 | 679 | 666 | |||||||||||
Selling | 501 | 481 | 941 | 922 | |||||||||||
General and administrative | 764 | 670 | 1,360 | 1,256 | |||||||||||
Total stock-based compensation expense | $ | 1,751 | $ | 1,593 | $ | 3,208 | $ | 3,054 |
Defined Benefit Pension Plans | Foreign Currency Translations | Unrealized Gain (Loss) on Investment | Total | ||||||||||||
Balance as of December 29, 2012 | $ | (179 | ) | $ | 1,453 | $ | (2 | ) | $ | 1,272 | |||||
Other comprehensive income | — | (1,979 | ) | (3 | ) | (1,982 | ) | ||||||||
Balance as of June 29, 2013 | $ | (179 | ) | $ | (526 | ) | $ | (5 | ) | $ | (710 | ) |
Three Months Ended | Six Months Ended | ||||||||||||||
June 29, 2013 | June 30, 2012 | June 29, 2013 | June 30, 2012 | ||||||||||||
Balance as of beginning of period | $ | 3,655 | $ | 4,923 | $ | 4,203 | $ | 4,797 | |||||||
Accruals for warranties issued during period | 701 | 1,192 | 1,124 | 2,664 | |||||||||||
Aggregate changes in liabilities related to preexisting warranties | 386 | 548 | 603 | 1,158 | |||||||||||
Settlements during the period | (1,223 | ) | (1,720 | ) | (2,411 | ) | (3,676 | ) | |||||||
Balance as of end of period | $ | 3,519 | $ | 4,943 | $ | 3,519 | $ | 4,943 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 29, 2013 | June 30, 2012 | June 29, 2013 | June 30, 2012 | ||||||||||||
Total net revenues: | |||||||||||||||
United States | $ | 16,328 | $ | 13,872 | $ | 25,761 | $ | 25,449 | |||||||
China | 5,407 | 1,702 | 6,051 | 2,637 | |||||||||||
Japan | 2,018 | 2,511 | 7,230 | 6,850 | |||||||||||
South Korea | 5,594 | 29,638 | 9,141 | 57,109 | |||||||||||
Israel | 506 | 159 | 761 | 6,475 | |||||||||||
All Other | 4,699 | 5,299 | 10,160 | 10,153 | |||||||||||
Total net revenues | $ | 34,552 | $ | 53,181 | $ | 59,104 | $ | 108,673 |
At | |||||||
June 29, 2013 | December 29, 2012 | ||||||
Long-lived tangible assets: | |||||||
United States | $ | 40,719 | $ | 40,600 | |||
Japan | 111 | 148 | |||||
South Korea | 440 | 520 | |||||
Israel | 8 | 13 | |||||
All Other | 2,553 | 1,932 | |||||
Total long-lived tangible assets | $ | 43,831 | $ | 43,213 |
At | |||||
June 29, 2013 | December 29, 2012 | ||||
Intel Corporation | 20.2 | % | 12.3 | % | |
SK Hynix | 15.1 | % | *** | ||
Samsung Electronics Co. Ltd. | 14.6 | % | *** | ||
Micron Technology, Inc. | 11.0 | % | *** | ||
Taiwan Semiconductor Mfg. Co. | *** | 17.3 | % |
Three Months Ended | Six Months Ended | ||||||||||
June 29, 2013 | June 30, 2012 | June 29, 2013 | June 30, 2012 | ||||||||
Intel Corporation | 25.1 | % | 13.9 | % | 26.9 | % | 22.1 | % | |||
SK Hynix | 23.4 | % | 24.6 | % | 14.9 | % | 16.8 | % | |||
Samsung Electronics Co. Ltd. | 14.6 | % | 34.3 | % | 12.3 | % | 37.3 | % |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
• | Introduced new products in every core product line and primary market served; |
• | Diversified our product line and addressed new markets through acquisitions, such as the 2011 acquisition of Nanda Technologies GmbH, a supplier of high sensitivity, high throughput defect inspection systems; |
• | Continued development of new measurement and inspection technologies for advanced fabrication processes; and |
• | Researched and developed innovative applications of existing technology to new market opportunities within the solar PV, HB-LED, and data storage industries. |
• | Proliferation of Optical Critical Dimension Metrology across Fabrication Processes. Our customers use photolithographic processes to create patterns on wafers. Critical dimensions must be carefully controlled during this process. In advanced node device definition, additional monitoring of thickness and profile dimensions on these patterned structures at CMP, Etch, and Thin Film processing is driving broader OCD adoption. Our proprietary OCD systems can provide the critical process control of these circuit dimensions that is necessary for successful manufacturing of these state of the art devices. Nanometrics OCD technology is broadly adopted across NAND, DRAM, HDD, and logic semiconductor manufacturing processes. |
• | Adoption of Advanced Packaging Processes: Our customers use photolithographic, etching, metallization and wafer thinning to enable next generation advanced packaging solutions for semiconductor devices. The new packaging leads to increased functionality in smaller, less expensive form factors. Advanced packages can be broken down into high density flip chip or bump packages that increase pin density allowing for more complex I/O on advanced CPU parts. Or, similar or different devices can be stacked at the wafer level using a Through Silicon Via ("TSV") process. The TSV process enables high density small form factor parts, being primarily driven by mobile consumer products (i.e. cellular telephones with integrated CMOS camera sensors). Increasingly, advanced packaging technologies are being adopted by our end customers. |
• | Adoption of New Types of Thin Film Materials. The need for ever increasing device circuit speed coupled with lower power consumption has pushed semiconductor device manufacturers to begin the replacement of the traditional aluminum etch back interconnect flows as well as conventional gate dielectric materials, all which drive a broader adoption of thin film and OCD metrology systems. To achieve greater semiconductor device speed, manufacturers have adopted copper in Logic/IDM and it is now proliferating in next generation DRAM and Flash nodes. Additionally, to achieve improved transistor performance in logic devices and higher cell densities in memory devices, new materials including high dielectric constant (or high-k) gate materials are increasingly being substituted for traditional silicon-oxide gate dielectric materials. High-k materials are comprised of complex thin films including layers of hafnium oxide and a bi-layer of thin film metals. Our advanced metrology and inspection solutions are required for control of process steps, which are critical to enable the device performance improvements that these new materials allow. |
• | Development of 3D Transistor Architectures. Our end customers continue to improve device density and performance by scaling front end of line transistor architectures. Many of these designs, including FinFET transistors and 3D-NAND have buried features and high aspect ratio stacked features that enable improved performance and density. The advanced designs require additional process control to manage the complex shapes and materials properties, driving additional applications for both OCD and our UniFire systems. |
• | Need for Improved Process Control to Drive Process Efficiencies. Competitive forces influencing semiconductor device manufacturers, such as price-cutting and shorter product life cycles, place pressure on manufacturers to rapidly achieve production efficiency. Device manufacturers are using our integrated and automated systems throughout the fabrication to ensure that manufacturing processes scale rapidly, are accurate and can be repeated on a consistent basis. |
• | Reduced Number of Customers. Our market is characterized by an ongoing oligopolistic trend which drives customer concentration. Our largest customer accounted for 25.1% of our total revenue for the second quarter of 2013, and our largest customer accounted for 34.3% of our total revenue for the second quarter of 2012. Our largest customer accounted for 26.9% of our total revenue for the first six months of 2013, and our largest customer accounted for 37.3% of our total revenue for the first six months of 2012. |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||
June 29, 2013 | June 30, 2012 | Changes In | June 29, 2013 | June 30, 2012 | Changes In | ||||||||||||||||||||||||
Amount | % | Amount | % | ||||||||||||||||||||||||||
Automated Systems | $ | 23,366 | $ | 37,104 | $ | (13,738 | ) | (37.0 | )% | $ | 28,628 | $ | 78,083 | $ | (49,455 | ) | (63.3 | )% | |||||||||||
Integrated Systems | 1,761 | 2,489 | (728 | ) | (29.2 | )% | 3,916 | 6,773 | (2,857 | ) | (42.2 | )% | |||||||||||||||||
Materials Characterization | 1,406 | 1,963 | (557 | ) | (28.4 | )% | 7,068 | 4,558 | 2,510 | 55.1 | % | ||||||||||||||||||
Total product revenues | 26,533 | 41,556 | (15,023 | ) | (36.2 | )% | 39,612 | 89,414 | (49,802 | ) | (55.7 | )% | |||||||||||||||||
Service revenues | 8,019 | 11,625 | (3,606 | ) | (31.0 | )% | 19,492 | 19,259 | 233 | 1.2 | % | ||||||||||||||||||
Total net revenues | $ | 34,552 | $ | 53,181 | $ | (18,629 | ) | (35.0 | )% | $ | 59,104 | $ | 108,673 | $ | (49,569 | ) | (45.6 | )% |
Three Months Ended | Six Months Ended | ||||||||||
June 29, 2013 | June 30, 2012 | June 29, 2013 | June 30, 2012 | ||||||||
Product | 41.7 | % | 44.0 | % | 39.2 | % | 45.5 | % | |||
Services | 42.7 | % | 55.6 | % | 48.5 | % | 47.4 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||
Changes in | Changes in | ||||||||||||||||||||||||||||
June 29, 2013 | June 30, 2012 | Amount | % | June 29, 2013 | June 30, 2012 | Amount | % | ||||||||||||||||||||||
Research and development | $ | 8,321 | $ | 7,644 | $ | 677 | 8.9 | % | $ | 15,768 | $ | 15,120 | $ | 648 | 4.3 | % | |||||||||||||
Selling | 6,613 | 7,041 | (428 | ) | (6.1 | )% | 13,545 | 14,252 | (707 | ) | (5.0 | )% | |||||||||||||||||
General and administrative | 5,507 | 5,583 | (76 | ) | (1.4 | )% | 11,019 | 11,664 | (645 | ) | (5.5 | )% | |||||||||||||||||
Amortization of intangible assets | 195 | 195 | — | — | % | 393 | 387 | 6 | 1.6 | % | |||||||||||||||||||
Total operating expenses | $ | 20,636 | $ | 20,463 | $ | 173 | 0.8 | % | $ | 40,725 | $ | 41,423 | $ | (698 | ) | (1.7 | )% |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||
Changes in | Changes in | ||||||||||||||||||||||||||||
June 29, 2013 | June 30, 2012 | Amount | % | June 29, 2013 | June 30, 2012 | Amount | % | ||||||||||||||||||||||
Interest income | $ | 20 | $ | 33 | $ | (13 | ) | (39.4 | )% | $ | 45 | $ | 85 | $ | (40 | ) | (47.1 | )% | |||||||||||
Interest expense | (205 | ) | (264 | ) | 59 | (22.3 | )% | (431 | ) | (533 | ) | 102 | (19.1 | )% | |||||||||||||||
Other expense, net | (637 | ) | (49 | ) | (588 | ) | NM* | (597 | ) | (224 | ) | (373 | ) | 166.5 | % | ||||||||||||||
Total other income (expense), net | $ | (822 | ) | $ | (280 | ) | $ | (542 | ) | 193.6 | % | $ | (983 | ) | $ | (672 | ) | $ | (311 | ) | 46.3 | % |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 4. | CONTROLS AND PROCEDURES |
ITEM 1. | LEGAL PROCEEDINGS |
ITEM 1A. | RISK FACTORS |
ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
ITEM 6. | EXHIBITS |
Exhibit No. | Description | |
3(i) | Certificate of Incorporation | |
3.1(1) | Certificate of Incorporation of the Registrant | |
3(ii) | Bylaws | |
3.2(2) | Bylaws of the Registrant | |
10 | Material Contracts | |
10.1(3) | 2005 Equity Incentive Plan, as amended | |
31 | Rule 13a-14(a)/15d-14(a) Certifications | |
31.1(4) | Certification of Timothy J. Stultz, principal executive officer of the Registrant, pursuant to rule 13a-14(a) or rule 15a-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
31.2(4) | Certification of Ronald W. Kisling, principal financial officer of the Registrant, pursuant to rule 13a-14(a) or rule 15a-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
32 | Section 1350 Certifications | |
32.1(4) | Certification of Timothy J. Stultz, principal executive officer of the Registrant, and Ronald W. Kisling, principal financial officer of the Registrant, pursuant to rule 13a-14(b) of the Securities Exchange Act of 1934, as amended, and U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
101(5) | The following financial statements, formatted in XBRL: (i) Condensed Consolidated Balance Sheets at June 29, 2013, and December 29, 2012, (ii) Condensed Consolidated Statements of Operations for the three and six months ended June 29, 2013, and June 30, 2012 (iii) Condensed Consolidated Statements of Cash Flows for the six months June 29, 2013, and June 30, 2012, and (v) Notes to Unaudited Condensed Consolidated Financial Statements, tagged as blocks of text. The information is Exhibit 101 is “furnished” and not “filed”, as provided in Rule 402 of Regulation S-T. | |
101.INS | XBRL Instance Document | |
101.SCH | XBRL Taxonomy Extension Schema Document | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
(1) | Incorporated by reference to Exhibit 3.1 filed with the Registrant's Current Report on Form 8-K (SEC File No. 000-13470) filed with the Securities and Exchange Commission (“SEC”) on October 5, 2006. |
(2) | Incorporated by reference to Exhibit 3.1 filed with the Registrant's Current Report on Form 8-K (SEC File No. 000-13470) filed with the SEC on April 12, 2012. |
(3) | Incorporated by reference to Annex A to the Registrant's Proxy Statement on Schedule 14A (SEC File No. 000-13470) filed with the SEC on April 10, 2013. |
(4) | Filed herewith. |
(5) | Furnished herewith. |
NANOMETRICS INCORPORATED | ||
(Registrant) | ||
By: | /S/ RONALD W. KISLING | |
Ronald W. Kisling | ||
Chief Financial Officer |
Exhibit No. | Description | |
3(i) | Certificate of Incorporation | |
3.1(1) | Certificate of Incorporation of the Registrant | |
3(ii) | Bylaws | |
3.2(2) | Bylaws of the Registrant | |
10 | Material Contracts | |
10.1(3) | 2005 Equity Incentive Plan, as amended | |
31 | Rule 13a-14(a)/15d-14(a) Certifications | |
31.1(4) | Certification of Timothy J. Stultz, principal executive officer of the Registrant, pursuant to rule 13a-14(a) or rule 15a-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
31.2(4) | Certification of Ronald W. Kisling, principal financial officer of the Registrant, pursuant to rule 13a-14(a) or rule 15a-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
32 | Section 1350 Certifications | |
32.1(4) | Certification of Timothy J. Stultz, principal executive officer of the Registrant, and Ronald W. Kisling, principal financial officer of the Registrant, pursuant to rule 13a-14(b) of the Securities Exchange Act of 1934, as amended, and U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
101(5) | The following financial statements, formatted in XBRL: (i) Condensed Consolidated Balance Sheets at June 29, 2013, and December 29, 2012, (ii) Condensed Consolidated Statements of Operations for the three and six months ended June 29, 2013, and June 30, 2012 (iii) Condensed Consolidated Statements of Cash Flows for the six months June 29, 2013, and June 30, 2012, and (v) Notes to Unaudited Condensed Consolidated Financial Statements, tagged as blocks of text. The information is Exhibit 101 is “furnished” and not “filed”, as provided in Rule 402 of Regulation S-T. | |
101.INS | XBRL Instance Document | |
101.SCH | XBRL Taxonomy Extension Schema Document | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
(1) | Incorporated by reference to Exhibit 3.1 filed with the Registrant's Current Report on Form 8-K (SEC File No. 000-13470) filed with the Securities and Exchange Commission (“SEC”) on October 5, 2006. |
(2) | Incorporated by reference to Exhibit 3.1 filed with the Registrant's Current Report on Form 8-K (SEC File No. 000-13470) filed with the SEC on April 12, 2012. |
(3) | Incorporated by reference to Annex A to the Registrant's Proxy Statement on Schedule 14A (SEC File No. 000-13470) filed with the SEC on April 10, 2013. |
(4) | Filed herewith. |
(5) | Furnished herewith. |
1. | I have reviewed this quarterly report on Form 10-Q of Nanometrics Incorporated; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
By: | /s/ Timothy J. Stultz |
Timothy J. Stultz | |
Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Nanometrics Incorporated; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
By: | /s/ Ronald W. Kisling |
Ronald W. Kisling | |
Chief Financial Officer |
August 2, 2013 | /s/ Timothy J. Stultz |
Timothy J. Stultz | |
Chief Executive Officer |
August 2, 2013 | /s/ Ronald W. Kisling |
Ronald W. Kisling | |
Chief Financial Officer |
Line of Credit and Debt Obligations
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 29, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of Credit and Debt Obligations | Line of Credit and Debt Obligations Debt obligations consist of the following (in thousands):
Line of Credit - On April 23, 2012, the Company amended its revolving line of credit facility (i) to extend the maturity date of such facility by two years to April 30, 2014, (ii) to decrease the unused revolving line commitment fee from 0.1875% per annum to 0.10% per annum, and (iii) to reduce the minimum interest rate on borrowings from 5.75% to 3.00% per annum. The instrument governing the line of credit facility includes certain financial covenants regarding tangible net worth. The revolving line of credit agreement includes a provision for the issuance of commercial or standby letters of credit by the bank on behalf of the Company. The value of all letters of credit outstanding reduces the total line of credit available. The revolving line of credit is collateralized by a blanket lien on all of the Company’s domestic assets excluding intellectual property and real estate. The minimum borrowing interest rate is 3.00% per annum. Borrowing is limited to the lesser of (a) $7.5 million plus the borrowing base, or (b) $20.0 million. The total borrowing available as of June 29, 2013, was $20.0 million. As of June 29, 2013, the Company was not in breach of any restrictive covenants in connection with this line of credit. There were no outstanding amounts drawn on this facility as of June 29, 2013. Although management has no current plans to request advances under this credit facility, the Company may use the proceeds of any future borrowing for general corporate purposes, future acquisitions or expansion of the Company's business. Mortgage Loan - In July 2008, the Company entered into a loan agreement with General Electric Commercial Finance ("GE") pursuant to which it borrowed $13.5 million, secured, in part, by a lien on and security interest in the building and land comprising the Company's principal offices in Milpitas, California. The loan initially bears interest at the rate of 7.18% per annum, which rate will be reset in August 2013 to 3.03% over the weekly average yield of five-year U.S Dollar Interest Rate Swaps as published by the Federal Reserve. Monthly principal and interest payments are based on a 20 year amortization for the first 60 months and 15 year amortization thereafter. The remaining principal balance of the loan and any accrued but unpaid interest will be due on August 1, 2018. According to the terms of the loan agreement, the Company can make annual pre-payments of up to 20% of the outstanding principal balance without incurring any penalty. GE subsequently sold the mortgage on March 31, 2011, to Sterling Saving Bank; however, no changes were made to the terms of the original loan agreement with GE as a result of the sale. In July 2012, the Company prepaid $1.4 million of the loan, representing 20% of the outstanding balance at the time of prepayment. The Company did not make any prepayment during the six months ended June 29, 2013. As of June 29, 2013, the outstanding balance of the loan was $4.8 million. On July 18, 2013, the Company repaid $4.8 million of the loan, representing the entire outstanding principal balance of the loan and all accrued interest. See Note 19. At June 29, 2013, future annual maturities of all debt obligations were as follows (in thousands):
The Company's level 2 valuation estimate of the fair value of its debt is based on the interest rates for similar debt instruments issued by other entities with credit ratings comparable to the Company's. The estimated fair value of the debt as of June 29, 2013, and December 29, 2012, was $5.2 million and $5.7 million, respectively. |
Line of Credit and Debt Obligations (Details 1) (USD $)
In Thousands, unless otherwise specified |
Jun. 29, 2013
|
Dec. 29, 2012
|
---|---|---|
Future annual maturities of all debt obligations | ||
2013 | $ 472 | |
2014 | 998 | |
2015 | 1,073 | |
2016 | 1,153 | |
2017 | 1,150 | |
Thereafter | 0 | |
Total debt obligations | 4,846 | 5,302 |
Long-term Debt, Current Maturities | $ 4,846 | $ 928 |
Condensed Consolidated Statements of Operations (Unaudited) (USD $)
In Thousands, except Per Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 29, 2013
|
Jun. 30, 2012
|
Jun. 29, 2013
|
Jun. 30, 2012
|
|
Net revenues: | ||||
Products | $ 26,533 | $ 41,556 | $ 39,612 | $ 89,414 |
Service | 8,019 | 11,625 | 19,492 | 19,259 |
Total net revenues | 34,552 | 53,181 | 59,104 | 108,673 |
Costs of net revenues: | ||||
Cost of products | 14,832 | 22,627 | 22,792 | 47,446 |
Cost of service | 4,593 | 5,158 | 10,041 | 10,128 |
Amortization of intangible assets | 647 | 637 | 1,305 | 1,274 |
Total costs of net revenues | 20,072 | 28,422 | 34,138 | 58,848 |
Gross profit | 14,480 | 24,759 | 24,966 | 49,825 |
Operating expenses: | ||||
Research and development | 8,321 | 7,644 | 15,768 | 15,120 |
Selling | 6,613 | 7,041 | 13,545 | 14,252 |
General and administrative | 5,507 | 5,583 | 11,019 | 11,664 |
Amortization of intangible assets | 195 | 195 | 393 | 387 |
Total operating expenses | 20,636 | 20,463 | 40,725 | 41,423 |
Income (loss) from operations | (6,156) | 4,296 | (15,759) | 8,402 |
Other income (expense) | ||||
Interest income | 20 | 33 | 45 | 85 |
Interest expense | (205) | (264) | (431) | (533) |
Other, net | (637) | (49) | (597) | (224) |
Total other expense, net | (822) | (280) | (983) | (672) |
Income (loss) before income taxes | (6,978) | 4,016 | (16,742) | 7,730 |
Provision for (benefit from) income taxes | (2,412) | (490) | (6,594) | 1,521 |
Net income (loss) | $ (4,566) | $ 4,506 | $ (10,148) | $ 6,209 |
Net income (loss) per share: | ||||
Basic (dollars per share) | $ (0.20) | $ 0.19 | $ (0.44) | $ 0.27 |
Diluted (dollars per share) | $ (0.20) | $ 0.19 | $ (0.44) | $ 0.26 |
Shares used in per share calculation: | ||||
Basic (shares) | 23,138 | 23,395 | 23,240 | 23,372 |
Diluted (shares) | 23,138 | 23,877 | 23,240 | 23,924 |
Cash and Investments (Notes)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 29, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Investments | Cash and Investments The following table presents cash, cash equivalents, and available-for-sale investments as of June 29, 2013, and December 29, 2012 (in thousands):
Available-for-sale marketable securities, readily convertible to cash, with maturity dates of 90 days or less are classified as cash equivalents, while those with maturity dates greater than 90 days are classified as marketable securities within short-term assets. All marketable securities as of June 29, 2013, and December 29, 2012, were available-for-sale and reported at fair value based on the estimated or quoted market prices as of the balance sheet date. Unrealized gains or losses, net of tax effect, are recorded in accumulated other comprehensive income (loss) within stockholders' equity. Both the gross unrealized gains and gross unrealized losses for the three and six month periods ended June 29, 2013, and June 30, 2012, were insignificant and no marketable securities had other than temporary impairment. All marketable securities as of June 29, 2013, and December 29, 2012, had maturity dates of less than two years and none were invested in foreign entities. |
Stock Repurchase
|
6 Months Ended |
---|---|
Jun. 29, 2013
|
|
Equity [Abstract] | |
Stock Repurchase | Stock Repurchase On May 29, 2012, the Company's Board of Directors approved a program to repurchase up to $20.0 million of the Company's common stock. Stock repurchases under this program may be made through open market and privately negotiated transactions, at times and in such amounts as management deems appropriate. The timing and actual number of shares repurchased is dependent on a variety of factors including price, corporate and regulatory requirements and other market conditions. Under this program, the Company repurchased and retired 250,400 shares of the Company's common stock at the weighted average price of $14.15 per share during fiscal 2012. During the three months ended March 30, 2013, the Company repurchased and retired 332,771 shares of the Company's common stock at the weighted average price of $15.03 per share. The Company did not repurchase any of its common stock during the three months ended June 29, 2013. As of June 29, 2013, the Company had repurchased and retired 583,171 shares of the Company's common stock at a weighted average price of $14.65 per share under this authorization, and there remained $11.5 million available for the future repurchase of shares of common stock. |
Geographic and Significant Customer Information (Details 2)
|
Jun. 29, 2013
|
Dec. 29, 2012
|
---|---|---|
Intel Corporation [Member]
|
||
Customers accounted for 10% or more of total accounts receivable | ||
Entity-Wide Revenue, Major Customer, Percentage | 20.20% | 12.30% |
Sk Hynix [Member]
|
||
Customers accounted for 10% or more of total accounts receivable | ||
Entity-Wide Revenue, Major Customer, Percentage | 15.10% | |
Samsung Electronics [Member]
|
||
Customers accounted for 10% or more of total accounts receivable | ||
Entity-Wide Revenue, Major Customer, Percentage | 14.60% | |
Micron Technology, Inc. [Member]
|
||
Customers accounted for 10% or more of total accounts receivable | ||
Entity-Wide Revenue, Major Customer, Percentage | 11.00% | |
Taiwan Semiconductor Mfg. Co. [Member]
|
||
Customers accounted for 10% or more of total accounts receivable | ||
Entity-Wide Revenue, Major Customer, Percentage | 17.30% |
Net Income/(Loss) Per Share
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 29, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income/(Loss) Per Share | Net Income/(Loss) Per Share The Company presents both basic and diluted earnings per share on the face of its condensed consolidated statements of operations. Basic earnings per share are computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding for the period. Diluted earnings per share are computed using the weighted-average number of shares of common stock outstanding plus the effect of all dilutive securities representing potential shares of common stock outstanding during the period. A reconciliation of the share denominator of the basic and diluted net income (loss) per share computations for the three and six months ended June 29, 2013, and June 30, 2012, is as follows (in thousands):
Since the Company had a net loss for the three and six month periods ended June 29, 2013, 344 and 367 potentially dilutive securities, respectively, were not included in the computation of diluted shares for the periods as inclusion of such shares would have been anti-dilutive. Accordingly, basic and diluted net loss per share were the same for the three and six month periods ending June 29, 2013. |
Intangible Assets (Details Textual) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 29, 2013
|
Jun. 30, 2012
|
Jun. 29, 2013
|
Jun. 30, 2012
|
|
Intangible Assets (Additional Textual) [Abstract] | ||||
Total amortization expense | $ 0.8 | $ 0.8 | $ 1.7 | $ 1.7 |
Minimum [Member]
|
||||
Intangible Assets (Textual) [Abstract] | ||||
Finite-lived intangibles estimated lives | 2 years | |||
Maximum [Member]
|
||||
Intangible Assets (Textual) [Abstract] | ||||
Finite-lived intangibles estimated lives | 10 years |
Equity and Stock Based Compensation Plans (Details Textual) (USD $)
In Millions, except Per Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 29, 2013
|
Jun. 30, 2012
|
Jun. 29, 2013
|
Jun. 30, 2012
|
|
Stock Based Compensation (Additional Textual) [Abstract] | ||||
Weighted average fair value per share of stock options | $ 7.94 | $ 8.80 | $ 8.70 | $ 10.66 |
Closing stock price of options | $ 14.67 | |||
Intrinsic value of options exercised | $ 0.6 | $ 0.7 | $ 1.4 | $ 3.4 |
Nature of Business and Basis of Presentation (Details Textual) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 29, 2013
|
Jun. 30, 2012
|
Jun. 29, 2013
weeks
|
Jun. 30, 2012
|
|
Nature of Business and Basis of Presentation (Textual) [Abstract] | ||||
Fiscal year reporting period | 52/53 week | |||
Number of weeks in fiscal quarter | 13 | |||
Foreign currency transaction losses | $ 200 | $ 100 | $ 13 | $ 300 |
Maximum period of delivery to customers under service contract arrangements | 6 months |
Fair Value Measurements and Disclosures (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 29, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and liabilities measurements at estimated fair value on recurring basis excluding accrued interest components | The following tables present the Company’s assets and liabilities measured at estimated fair value on a recurring basis, excluding accrued interest components, categorized in accordance with the fair value hierarchy (in thousands):
(1) Excludes $36.7 million and $60.2 million held in operating accounts as of June 29, 2013, and December 29, 2012, respectively. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value measurement on recurring basis, unobservable input reconciliation |
|
Nature of Business and Basis of Presentation (Policies)
|
6 Months Ended |
---|---|
Jun. 29, 2013
|
|
Nature of Business and Basis of Presentation [Abstract] | |
Description of Business | Description of Business – Nanometrics Incorporated (“Nanometrics” or the “Company”) and its wholly owned subsidiaries design, manufacture, market, sell and support thin film, optical critical dimension and overlay dimension metrology and inspection systems used primarily in the manufacturing of semiconductors, solar photovoltaics (“solar PV”) and high-brightness LEDs (“HB-LED”), as well as by customers in the silicon wafer and data storage industries. Nanometrics' metrology systems precisely measure a wide range of film types deposited on substrates during manufacturing to control manufacturing processes and increase production yields in the fabrication of integrated circuits. The thin film metrology systems use a broad spectrum of wavelengths, high-sensitivity optics, proprietary software, and patented technology to measure the thickness and uniformity of films deposited on silicon and other substrates as well as their chemical composition. The Company’s optical critical dimension technology is a patented critical dimension measurement technology that is used to precisely determine the dimensions on the semiconductor wafer that directly control the resulting performance of the integrated circuit devices. The overlay metrology systems are used to measure the overlay accuracy of successive layers of semiconductor patterns on wafers in the photolithography process. Nanometrics' inspection systems are used to find defects on patterned and unpatterned wafers at nearly every stage of the semiconductor production flow. The corporate headquarters of Nanometrics is located in Milpitas, California. |
Basis of Presentation | Basis of Presentation – The accompanying condensed consolidated financial statements ("financial statements") have been prepared on a consistent basis with the audited consolidated financial statements as of December 29, 2012, and include all adjustments necessary to fairly present the information set forth therein, which include only normal recurring adjustments. All significant intercompany accounts and transactions have been eliminated in consolidation. The financial statements have been prepared in accordance with the regulations of the United States Securities and Exchange Commission (“SEC”) for interim periods in accordance with S-X Article 10, and, therefore, omit certain information and footnote disclosure necessary to present the statements in accordance with accounting principles generally accepted in the United States of America. The operating results for interim periods are not necessarily indicative of the operating results that may be expected for the entire year. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the fiscal year ended December 29, 2012, which were included in the Company’s Annual Report on Form 10-K filed with the SEC on March 12, 2013. |
Fiscal Period | Fiscal Period – The Company uses a 52/53 week fiscal year ending on the Saturday nearest to December 31. All references to the quarter refer to Nanometrics' fiscal quarter. The fiscal quarters presented herein include 13 weeks. |
Reclassification | Reclassification – Certain prior year amounts have been reclassified to conform to the current year presentation. |
Use of Estimates | Use of Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ materially from those estimates. Estimates are used for, but not limited to, revenue recognition, the provision for doubtful accounts, the provision for excess, obsolete, or slow moving inventories, depreciation and amortization, valuation of intangible assets and long-lived assets, warranty accruals, income taxes, valuation of stock-based compensation, and contingencies. |
Foreign Currency Translation | Foreign Currency Translation – The assets and liabilities of foreign subsidiaries are translated from their respective functional currencies at exchange rates in effect at the balance sheet date and income and expense accounts are translated at average exchange rates during the reporting period. Resulting translation adjustments are reflected in “Accumulated other comprehensive income (loss),” a component of stockholders’ equity. |
Revenue Recognition | Revenue Recognition – The Company derives revenue from the sale of process control metrology systems (“product revenue”) as well as spare part sales, billable service, service contracts, and upgrades (together “service revenue”). Upgrades are a group of parts and/or software that change the existing configuration of a product and are included in service revenue. They are distinguished from product revenue, which consists of complete, advanced process control metrology and inspection systems (the “system(s)”). Nanometrics' systems consist of hardware and software components that function together to deliver the essential functionality of the system. Arrangements for sales of systems often include defined customer-specified acceptance criteria. In summary, the Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the seller's price is fixed or determinable, and collectability is reasonably assured. For product sales to existing customers, revenue recognition occurs at the time title and risk of loss transfer to the customer, which usually occurs upon shipment from the Company's manufacturing location, if it can be reliably demonstrated that the product has successfully met the defined customer specified acceptance criteria and all other recognition criteria has been met. For initial sales where the product has not previously met the defined customer specified acceptance criteria, product revenues are recognized upon the earlier of receipt of written customer acceptance or expiration of the contractual acceptance period. In Japan, where contractual terms with the customer specify risk of loss and title transfers upon customer acceptance, revenue is recognized upon receipt of written customer acceptance, provided that all other recognition criteria have been met. The Company warrants its products against defects in manufacturing. Upon recognition of product revenue, a liability is recorded for anticipated warranty costs. On occasion, customers request a warranty period longer than the Company's standard warranty. In those instances where extended warranty services are separately quoted to the customer, the associated revenue is deferred and recognized as service revenue ratably over the term of the contract. The portion of service contracts and extended warranty services agreements that are uncompleted at the end of any reporting period are included in deferred revenue. As part of its customer services, the Company sells software that is considered to be an upgrade to a customer's existing systems. These standalone software upgrades are not essential to the tangible product's functionality and are accounted for under software revenue recognition rules which require vendor specific objective evidence ("VSOE") of fair value to allocate revenue in a multiple element arrangement. Revenue from upgrades is recognized when the upgrades are delivered to the customer, provided that all other recognition criteria have been met. Revenue related to spare parts is recognized upon shipment. Revenue related to billable services is recognized as the services are performed. Service contracts may be purchased by the customer during or after the warranty period and revenue is recognized ratably over the service contract period. Frequently, the Company delivers products and various services in a single transaction. The Company's deliverables consist of tools, installation, upgrades, billable services, spare parts, and service contracts. The Company's typical multi-element arrangements include a sale of one or multiple tools that include installation and standard warranty. Other arrangements consist of a sale of tools bundled with service elements or delivery of different types of services. The Company's tools, upgrades, and spare parts are generally delivered to customers within a period of up to six months from order date. Installation is usually performed soon after delivery of the tool. The portion of revenue associated with installation is deferred based on relative selling price and that revenue is recognized upon completion of the installation. Billable services are billed on a time and materials basis and performed as requested by customers. Under service contract arrangements, services are provided as needed over the fixed arrangement term. The Company does not grant its customers a general right of return or any refund terms and imposes a penalty on orders canceled prior to the scheduled shipment date. The Company regularly evaluates its revenue arrangements to identify deliverables and to determine whether these deliverables are separable into multiple units of accounting. In accordance with revenue recognition guidance, the Company allocates the arrangement consideration among the deliverables based on relative selling prices. The Company has established VSOE for some of its products and services when a substantial majority of selling prices falls within a narrow range when sold separately. For deliverables with no established VSOE, the Company uses best estimate of selling price to determine standalone selling price for such deliverable. The Company does not use third party evidence ("TPE") to determine standalone selling price since this information is not widely available in the market as the Company's products contain a significant element of proprietary technology and the solutions offered differ substantially from competitors. The Company has established a process for developing estimated selling prices, which incorporates historical selling prices, the effect of market conditions, gross margin objectives, pricing practices, as well as entity-specific factors. The Company monitors and evaluates estimated selling price on a regular basis to ensure that changes in circumstances are accounted for in a timely manner. When certain elements in multiple-element arrangements are not delivered or accepted at the end of a reporting period, the relative selling prices of undelivered elements are deferred until these elements are delivered and/or accepted. If deliverables cannot be accounted for as separate units of accounting, the entire arrangement is accounted for as a single unit of accounting and revenue is deferred until all elements are delivered and all revenue recognition requirements are met. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2013, the FASB issued ASU No. 2013-02, Comprehensive Income (Topic 220) - Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income to require reclassification adjustments from other comprehensive income to be presented either in the financial statements or in the notes to the financial statements, which we have done within Note 13 - "Equity and Stock Based Compensation Plans". ASU 2013-02 does not change the current requirements for reporting net income or other comprehensive income in the financial statements. ASU 2013-02 was effective for the period ending March 30, 2013, and is applied prospectively. |
Net Income/(Loss) Per Share (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 29, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of the basic and diluted net income per share computations | A reconciliation of the share denominator of the basic and diluted net income (loss) per share computations for the three and six months ended June 29, 2013, and June 30, 2012, is as follows (in thousands):
|
Fair Value Measurements and Disclosures (Details 1) (Level 3 [Member], USD $)
In Thousands, unless otherwise specified |
6 Months Ended |
---|---|
Jun. 29, 2013
|
|
Level 3 [Member]
|
|
Fair value measurement on recurring basis, unobservable input reconciliation | |
Fair value at December 29, 2012 | $ 2,462 |
Payments made to Zygo Corporation | (216) |
Change in fair value included in earnings | 1,000 |
Fair Value at June 29, 2013 | $ 3,246 |
Intangible Assets (Future Amortization Expense) (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 29, 2013
|
---|---|
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
2013 | $ 1,607 |
2014 | 3,006 |
2015 | 2,324 |
2016 | 1,856 |
2017 | 227 |
Thereafter | 206 |
Total future amortization expense | $ 9,226 |
Intangible Assets (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 29, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Finite-lived intangible assets | Finite-lived intangible assets as of June 29, 2013, and December 29, 2012, consisted of the following (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | At June 29, 2013, estimated future amortization expense of intangible assets were as follows (in thousands)
|
Commitments and Contingencies (Details Textual) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2012
|
Dec. 31, 2011
|
Jun. 29, 2013
|
Dec. 29, 2012
|
|
Commitments and Contingencies (Textual) [Abstract] | ||||
Liabilities recorded for obligations | $ 0 | $ 0 | ||
One time payment to KLA | $ 2.5 | $ 2.5 |
Income Taxes (Details Textual) (USD $)
|
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 29, 2013
|
Mar. 30, 2013
|
Jun. 30, 2012
|
Jun. 29, 2013
|
Jun. 30, 2012
|
|
Income Taxes (Textual) [Abstract] | |||||
Income tax (benefit) provision | $ (2,412,000) | $ (490,000) | $ (6,594,000) | $ 1,521,000 | |
Research tax credit | 500,000 | ||||
Anticipated increase in unrecognized tax benefits in the next twelve months | $ 700,000 | $ 700,000 |
Cash and Investments Cash and Investments Textual (Details) (USD $)
|
3 Months Ended | 6 Months Ended |
---|---|---|
Mar. 31, 2012
|
Jun. 29, 2013
|
|
Cash and Investments Additional Disclosures [Abstract] | ||
Maximum maturity period of Available-for-sale marketable securities, classified as cash equivalents | 90 days | |
Minimum maturity period of Available-for-sale marketable securities, classified as marketable securities | 90 days | |
Unrealized gains or losses on marketable securities | $ 0 | $ 0 |
Maximum period of available for sale securities debt maturities | 2 years |
Stock Repurchase (Details Textual) (USD $)
In Millions, except Share data, unless otherwise specified |
3 Months Ended | 0 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 13 Months Ended |
---|---|---|---|---|---|---|
Jun. 29, 2013
|
May 29, 2012
May 29, 2012 Program [Member]
|
Mar. 30, 2013
May 29, 2012 Program [Member]
|
Jun. 29, 2013
May 29, 2012 Program [Member]
|
Dec. 29, 2012
May 29, 2012 Program [Member]
|
Jun. 29, 2013
May 29, 2012 Program [Member]
|
|
Stock Repurchase (Textual) [Abstract] | ||||||
Maximum amount of common stock approved to repurchase, Value | $ 20.0 | |||||
Common stock repurchased and retired, shares | 0 | 332,771 | 250,400 | 583,171 | ||
Weighted average repurchase price of common stock | $ 15.03 | $ 14.15 | $ 14.65 | |||
Remaining amount of common stock approved to repurchase, Value | $ 11.5 |
Subsequent Event Subsequent Event
|
6 Months Ended |
---|---|
Jun. 29, 2013
|
|
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On July 18, 2013, the Company repaid $4.8 million of the Sterling Savings Bank loan, representing the entire outstanding principal balance of the loan and all accrued interest. The Company did not incur any fees associated with the prepayment of the loan. See Note 11. |
Recent Accounting Pronouncements
|
6 Months Ended |
---|---|
Jun. 29, 2013
|
|
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2013, the FASB issued ASU No. 2013-02, Comprehensive Income (Topic 220) - Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income to require reclassification adjustments from other comprehensive income to be presented either in the financial statements or in the notes to the financial statements, which we have done within Note 13 - "Equity and Stock Based Compensation Plans". ASU 2013-02 does not change the current requirements for reporting net income or other comprehensive income in the financial statements. ASU 2013-02 was effective for the period ending March 30, 2013, and is applied prospectively. |
Goodwill Impairment and Long-lived Asset Impairment
|
6 Months Ended |
---|---|
Jun. 29, 2013
|
|
Acquisitions and Goodwill and Long Lived Asset Impairment [Abstract] | |
Goodwill Impairment and Long-lived Asset Impairment | Goodwill Impairment and Long-lived Asset Impairment The Company’s impairment review process is completed during the fourth quarter of each year or whenever events or circumstances occur that indicate that an impairment may have occurred. The Company may assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If, after assessing the qualitative factors, a company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then performing the two-step impairment test is necessary. Otherwise, no further testing is necessary. The Company completed its annual goodwill impairment assessment during the fourth quarter of 2012 by first performing a qualitative assessment. As part of this assessment, the Company considered the trading value of the Company's stock, the industry trends, and the Company's sales forecast and products plans. The Company concluded that it was more likely than not that the fair value was more than the carrying values of the Company's reporting unit and therefore did not proceed to Step 1 of the goodwill impairment test. The process of evaluating the potential impairment of long-lived assets is highly subjective and requires significant judgment. In estimating the fair value of these assets, the Company made estimates and judgments about future revenues and cash flows. The Company’s forecasts were based on assumptions that are consistent with the plans and estimates the Company is using to manage its business. Changes in these estimates could change the Company’s conclusion regarding impairment of the long-lived assets and potentially result in future impairment charges for all or a portion of their balance at December 29, 2012. The Company did not record any impairment charges in the fiscal year 2012. |
Fair Value Measurements and Disclosures
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 29, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements and Disclosures | Fair Value Measurements and Disclosures Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The standard assumes that the transaction to sell the asset or transfer the liability occurs in the principal or most advantageous market for the asset or liability and establishes that the fair value of an asset or liability shall be determined based on the assumptions that market participants would use in pricing the asset or liability. The Company determines the fair values of its financial instruments based on the fair value hierarchy established in ASC 820, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The classification of a financial asset or liability within the hierarchy is based upon the lowest level input that is significant to the fair value measurement. The fair value hierarchy prioritizes the inputs into three levels that may be used to measure fair value: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 — Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. Such unobservable inputs include an estimated discount rate used in the Company's discounted present value analysis of future cash flows, which reflects the Company's estimate of debt with similar terms in the current credit markets. As there is currently minimal activity in such markets, the actual rate could be materially different. The following tables present the Company’s assets and liabilities measured at estimated fair value on a recurring basis, excluding accrued interest components, categorized in accordance with the fair value hierarchy (in thousands):
(1) Excludes $36.7 million and $60.2 million held in operating accounts as of June 29, 2013, and December 29, 2012, respectively. The fair values of the marketable securities that are classified as Level 1 in the table above were derived from quoted market prices for identical assets or liabilities that the Company has the ability to access. The fair value of marketable securities that are classified as Level 2 in the table above were derived from the following: non-binding market consensus prices that were corroborated by observable market data, quoted market prices for similar instruments, or pricing models, such as discounted cash flow techniques, with all significant inputs derived from or corroborated by observable market data. There were no transfers of instruments between Level 1, Level 2 and Level 3 during the financial periods presented. Refer to Note 11 "Line of Credit and Debt Obligations" for the carrying value and fair value of the Company's debt obligations.
As of June 29, 2013, the Company had liabilities of $3.2 million resulting from the acquisition of certain assets from Zygo Corporation (“Zygo”) which are measured at fair value on a recurring basis, with changes in fair value recorded in other income or expenses. Of the $3.2 million of Zygo liabilities at June 29, 2013, $1.5 million was a current liability and $1.7 million was a long-term liability. In the second quarter ended June 29, 2013, the Company revised its forecast for the number of units it expects to purchase from Zygo in future periods, and recorded a related increase in the fair value of the Zygo liabilities associated with the revised forecast. As of December 29, 2012, the liabilities totaled $2.5 million of which $0.7 million was a current liability and $1.8 million was a long-term liability. The fair values of these liabilities were determined using level 3 inputs using a discounted cash flow model incorporating assumptions that market participants would use in their estimates of fair value. Some of these assumptions included estimates for discount rate, timing and the amount of cash flows. |
Fair Value Measurements and Disclosures (Details Textual) (Fair Value, Measurements, Recurring [Member], Zygo Corporation [Member], USD $)
In Millions, unless otherwise specified |
Jun. 29, 2013
|
Dec. 29, 2012
|
---|---|---|
Fair Value, Measurements, Recurring [Member] | Zygo Corporation [Member]
|
||
Fair Value Measurements and Disclosures (Textual) [Abstract] | ||
Liabilities resulting from the acquisition of certain assets from Zygo Corporation measured at fair value | $ 3.2 | $ 2.5 |
Current liability at fair value | 1.5 | 0.7 |
Long-term liability at fair value | $ 1.7 | $ 1.8 |
Cash and Investments (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 29, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash, Cash Equivalents and Available-for-sale Investments | The following table presents cash, cash equivalents, and available-for-sale investments as of June 29, 2013, and December 29, 2012 (in thousands):
|
Other Current Liabilities (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 29, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of other current liabilities | Other current liabilities consist of the following (in thousands):
|
Geographic and Significant Customer Information (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 29, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Geographic and Significant Customer Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total net revenue | The following table summarizes total net revenues (based on the deployments and service location of the systems) and long-lived assets (excluding intangible assets) attributed to significant geographic regions (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-lived tangible assets |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Customers accounted for 10% or more of total accounts receivable | The following customers accounted for 10% or more of total accounts receivable:
*** The customer accounted for less than 10% of total accounts receivable for that period. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Customers accounted for 10% or more of total revenue | The following customers accounted for 10% or more of total revenue
|
Subsequent Event (Details) (USD $)
In Thousands, unless otherwise specified |
6 Months Ended | 0 Months Ended | |
---|---|---|---|
Jun. 29, 2013
|
Jun. 30, 2012
|
Jul. 18, 2013
Subsequent Event [Member]
|
|
Subsequent Event [Line Items] | |||
Repayments of Long-term Debt | $ 456 | $ 374 | $ 4,800 |
Equity and Stock Based Compensation Plans (Details)
|
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 29, 2013
|
Jun. 30, 2012
|
Jun. 29, 2013
|
Jun. 30, 2012
|
|
Stock Options [Member]
|
||||
Assumption of stock option's fair value | ||||
Expected life | 4 years 7 months 6 days | 4 years 2 months 12 days | 4 years 6 months | 4 years 6 months |
Volatility | 68.90% | 78.65% | 72.32% | 78.23% |
Risk free interest rate | 1.02% | 0.74% | 0.90% | 0.85% |
Dividends | 0.00% | 0.00% | 0.00% | 0.00% |
Employee Stock Purchase Plan [Member]
|
||||
Assumption of stock option's fair value | ||||
Expected life | 6 months | 6 months | 6 months | 6 months |
Volatility | 25.94% | 55.93% | 27.61% | 62.74% |
Risk free interest rate | 0.10% | 0.06% | 0.11% | 0.06% |
Dividends | 0.00% | 0.00% | 0.00% | 0.00% |