FORM 10-Q |
ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
ELECTRO SCIENTIFIC INDUSTRIES, INC. | ||
Oregon | 93-0370304 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
13900 N.W. Science Park Drive, Portland, Oregon | 97229 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | ¨ | Accelerated filer | ý | |
Non-accelerated filer | ¨ | Smaller reporting company | ¨ |
Part I | FINANCIAL INFORMATION | |
Financial Statements (Unaudited) | ||
Part II | OTHER INFORMATION | |
(In thousands) | Jun 29, 2013 | Mar 30, 2013 | |||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 73,765 | $ | 88,913 | |||
Short-term investments | 50,265 | 56,144 | |||||
Trade receivables, net of allowances of $441 and $442 | 38,199 | 31,779 | |||||
Inventories | 74,074 | 63,067 | |||||
Shipped systems pending acceptance | 1,857 | 1,007 | |||||
Deferred income taxes, net | 1,734 | 1,682 | |||||
Other current assets | 3,894 | 3,898 | |||||
Total current assets | 243,788 | 246,490 | |||||
Non-current assets: | |||||||
Non-current investments | 12,299 | 12,329 | |||||
Property, plant and equipment, net of accumulated depreciation of $100,120 and $98,734 | 28,091 | 27,894 | |||||
Non-current deferred income taxes, net | 3,708 | 3,766 | |||||
Goodwill | 7,889 | 7,889 | |||||
Acquired intangible assets, net of accumulated amortization of $16,113 and $15,393 | 9,108 | 9,088 | |||||
Other assets | 13,584 | 14,752 | |||||
Total assets | $ | 318,467 | $ | 322,208 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 16,721 | $ | 16,958 | |||
Accrued liabilities | 24,891 | 24,930 | |||||
Deferred revenue | 10,766 | 10,196 | |||||
Total current liabilities | 52,378 | 52,084 | |||||
Non-current liabilities: | |||||||
Income taxes payable | 5,885 | 5,982 | |||||
Commitments and contingencies | |||||||
Shareholders’ equity: | |||||||
Preferred stock, without par value; 1,000 shares authorized; no shares issued | — | — | |||||
Common stock, without par value; 100,000 shares authorized; 29,915 and 29,583 issued and outstanding | 178,469 | 176,631 | |||||
Retained earnings | 81,567 | 87,228 | |||||
Accumulated other comprehensive income, other | 168 | 283 | |||||
Total shareholders’ equity | 260,204 | 264,142 | |||||
Total liabilities and shareholders’ equity | $ | 318,467 | $ | 322,208 |
Fiscal quarter ended | |||||||
(In thousands, except per share amounts) | Jun 29, 2013 | Jun 30, 2012 | |||||
Net sales | $ | 46,172 | $ | 58,969 | |||
Cost of sales | 26,786 | 35,316 | |||||
Gross profit | 19,386 | 23,653 | |||||
Operating expenses: | |||||||
Selling, service and administration | 14,547 | 15,663 | |||||
Research, development and engineering | 8,425 | 9,534 | |||||
Gain on acquisition of Semiconductor Systems business | (464 | ) | — | ||||
Net operating expenses | 22,508 | 25,197 | |||||
Operating loss | (3,122 | ) | (1,544 | ) | |||
Interest and other expense, net | (60 | ) | (150 | ) | |||
Loss before income taxes | (3,182 | ) | (1,694 | ) | |||
Provision for (benefit from) income taxes | 101 | (750 | ) | ||||
Net loss | $ | (3,283 | ) | $ | (944 | ) | |
Net loss per share—basic | $ | (0.11 | ) | $ | (0.03 | ) | |
Net loss per share—diluted | $ | (0.11 | ) | $ | (0.03 | ) | |
Weighted average number of shares—basic | 29,745 | 29,116 | |||||
Weighted average number of shares—diluted | 29,745 | 29,116 | |||||
Cash dividends paid per outstanding common share | $ | 0.08 | $ | 0.08 |
Fiscal quarter ended | |||||||
(In thousands) | Jun 29, 2013 | Jun 30, 2012 | |||||
Net loss | $ | (3,283 | ) | $ | (944 | ) | |
Other comprehensive loss : | |||||||
Foreign currency translation adjustment, net of taxes of $0 and $(112) | (99 | ) | 202 | ||||
Accumulated other comprehensive income related to benefit plan obligation, net of taxes of $(2) and $(1) | 3 | 3 | |||||
Net unrealized (loss) gain on available-for-sale securities, net of taxes of $0 and $(1) | (19 | ) | 2 | ||||
Comprehensive loss | $ | (3,398 | ) | $ | (737 | ) |
Fiscal quarter ended | |||||||
(In thousands) | Jun 29, 2013 | Jun 30, 2012 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net loss | $ | (3,283 | ) | $ | (944 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Depreciation and amortization | 1,747 | 2,288 | |||||
Amortization of acquired intangible assets | 722 | 470 | |||||
Share-based compensation expense | 2,634 | 2,977 | |||||
Loss on sale of property and equipment, net | 37 | — | |||||
Gain on acquisition of Semiconductor Systems business | (464 | ) | — | ||||
Increase in deferred income taxes | (289 | ) | (1,669 | ) | |||
Changes in operating accounts, net of acquisitions: | |||||||
(Increase) decrease in trade receivables, net | (2,573 | ) | 4,915 | ||||
Increase in inventories | (2,676 | ) | (1,902 | ) | |||
(Increase) decrease in shipped systems pending acceptance | (850 | ) | 1,003 | ||||
(Increase) decrease in other current assets | (1,441 | ) | 456 | ||||
(Decrease) increase in accounts payable and accrued liabilities | (2,655 | ) | 3,943 | ||||
Increase (decrease) in deferred revenue | 391 | (185 | ) | ||||
Net cash (used in) provided by operating activities | (8,700 | ) | 11,352 | ||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Purchase of investments | (123,126 | ) | (313,897 | ) | |||
Proceeds from sales and maturities of investments | 129,015 | 330,312 | |||||
Purchase of property, plant and equipment | (1,215 | ) | (995 | ) | |||
Cash paid for business acquisitions | (8,000 | ) | (9,466 | ) | |||
Decrease in other assets | 239 | 172 | |||||
Net cash (used in) provided by investing activities | (3,087 | ) | 6,126 | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Cash dividends paid to shareholders | (2,379 | ) | (2,331 | ) | |||
Stock plan activity, net | (796 | ) | (618 | ) | |||
Excess tax benefit of share-based compensation | — | 54 | |||||
Net cash used in financing activities | (3,175 | ) | (2,895 | ) | |||
Effect of exchange rate changes on cash | (186 | ) | (47 | ) | |||
NET CHANGE IN CASH AND CASH EQUIVALENTS | (15,148 | ) | 14,536 | ||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 88,913 | 69,780 | |||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 73,765 | $ | 84,316 | |||
SUPPLEMENTAL CASH FLOW INFORMATION | |||||||
Cash paid for interest | $ | — | $ | — | |||
Cash paid for income taxes | $ | (338 | ) | $ | (306 | ) | |
Income tax refunds received | $ | 2 | $ | 131 | |||
Accrued acquisition purchase price adjustment | (1,600 | ) | — |
Fiscal quarter ended | |||||||
(In thousands) | Jun 29, 2013 | Jun 30, 2012 | |||||
Cost of sales | $ | 185 | $ | 216 | |||
Selling, service and administration | 2,094 | 2,261 | |||||
Research, development and engineering | 355 | 500 | |||||
Total share-based compensation expense | $ | 2,634 | $ | 2,977 |
• | Level 1, defined as observable inputs such as quoted prices in active markets for identical assets or liabilities; |
• | Level 2, defined as inputs that are observable either directly or indirectly such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active and other inputs that can be corroborated by observable market data; and |
• | Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. |
June 29, 2013 | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Money market securities | $ | 9,861 | $ | — | $ | — | $ | 9,861 | |||||||
Commercial paper | — | 24,998 | — | 24,998 | |||||||||||
Corporate Bonds | — | 21,781 | — | 21,781 | |||||||||||
Municipal bonds | — | 19,113 | — | 19,113 | |||||||||||
Government agencies | — | 15,583 | — | 15,583 | |||||||||||
Forward purchase or (sale) contracts: | |||||||||||||||
Japanese Yen | — | 100 | — | 100 | |||||||||||
Korean Won | — | (39 | ) | — | (39 | ) | |||||||||
Euro | — | (27 | ) | — | (27 | ) | |||||||||
British Pound | — | 6 | — | 6 |
March 30, 2013 | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Money market securities | $ | 9,457 | $ | — | $ | — | $ | 9,457 | |||||||
Commercial paper | — | 51,443 | — | 51,443 | |||||||||||
Government agencies | — | 29,646 | — | 29,646 | |||||||||||
Corporate bonds | — | 18,396 | — | 18,396 | |||||||||||
Municipal bonds | — | 3,389 | — | 3,389 | |||||||||||
Forward purchase or (sale) contracts: | |||||||||||||||
Japanese Yen | — | 176 | — | 176 | |||||||||||
New Taiwan Dollar | — | (10 | ) | — | (10 | ) | |||||||||
Korean Won | — | (46 | ) | — | (46 | ) | |||||||||
Euro | — | 100 | — | 100 | |||||||||||
British Pound | — | 38 | — | 38 | |||||||||||
Chinese Renminbi | — | (1 | ) | — | (1 | ) | |||||||||
Singapore Dollar | — | (12 | ) | — | (12 | ) |
Unrealized | |||||||||||||||
June 29, 2013 | Cost | Gain | Loss | Fair Value | |||||||||||
Available-for-sale securities (current): | |||||||||||||||
Commercial paper | $ | 24,998 | $ | — | $ | — | $ | 24,998 | |||||||
Corporate Bonds | 17,459 | — | (5 | ) | 17,454 | ||||||||||
Government agencies | 15,578 | 5 | — | 15,583 | |||||||||||
Municipal Bonds | 11,140 | 1 | — | 11,141 | |||||||||||
$ | 69,175 | $ | 6 | $ | (5 | ) | $ | 69,176 | |||||||
Available-for-sale securities (non-current): | |||||||||||||||
Municipal Bonds | $ | 7,974 | $ | — | $ | (2 | ) | $ | 7,972 | ||||||
Corporate Bonds | 4,336 | — | (9 | ) | 4,327 | ||||||||||
$ | 12,310 | $ | — | $ | (11 | ) | $ | 12,299 | |||||||
Unrealized | |||||||||||||||
March 30, 2013 | Cost | Gain | Loss | Fair Value | |||||||||||
Available-for-sale securities (current): | |||||||||||||||
Commercial paper | $ | 51,443 | $ | — | $ | — | $ | 51,443 | |||||||
Government agencies | 26,556 | 8 | — | 26,564 | |||||||||||
Corporate Bonds | 10,473 | 7 | — | 10,480 | |||||||||||
Municipal Bonds | 2,058 | — | — | 2,058 | |||||||||||
$ | 90,530 | $ | 15 | $ | — | $ | 90,545 | ||||||||
Available-for-sale securities (non-current): | |||||||||||||||
Corporate Bonds | $ | 7,923 | $ | — | $ | (7 | ) | $ | 7,916 | ||||||
Government agencies | 3,082 | — | — | 3,082 | |||||||||||
Municipal Bonds | 1,330 | 1 | — | 1,331 | |||||||||||
$ | 12,335 | $ | 1 | $ | (7 | ) | $ | 12,329 |
(In thousands) | Jun 29, 2013 | Mar 30, 2013 | |||||
Raw materials and purchased parts | $ | 50,425 | $ | 44,332 | |||
Work-in-process | 14,680 | 8,985 | |||||
Finished goods | 8,969 | 9,750 | |||||
$ | 74,074 | $ | 63,067 |
(In thousands) | Jun 29, 2013 | Mar 30, 2013 | |||||
Prepaid expenses | $ | 2,101 | $ | 2,240 | |||
Value added tax receivable | 729 | 763 | |||||
Other | 1,064 | 895 | |||||
$ | 3,894 | $ | 3,898 |
(In thousands) | Jun 29, 2013 | Mar 30, 2013 | |||||
Minority equity investment | $ | 8,966 | $ | 8,966 | |||
Consignment and demo equipment, net | 3,108 | 4,263 | |||||
Other | 1,510 | 1,523 | |||||
$ | 13,584 | $ | 14,752 |
(In thousands) | Jun 29, 2013 | Mar 30, 2013 | |||||
Payroll-related liabilities | $ | 5,782 | $ | 7,918 | |||
Product warranty accrual | 5,193 | 5,411 | |||||
Pension benefit liabilities | 1,514 | 1,501 | |||||
Professional fees payable | 1,611 | 1,322 | |||||
Income taxes payable | 3,145 | 2,884 | |||||
Purchase order commitments and receipts | 3,257 | 2,533 | |||||
Freight accrual | 748 | 646 | |||||
Restructuring costs payable | 327 | 485 | |||||
Customer deposits | 1,192 | 225 | |||||
Value added taxes payable | 257 | 258 | |||||
Other | 1,865 | 1,747 | |||||
$ | 24,891 | $ | 24,930 |
Fiscal quarter ended | |||||||
(In thousands) | Jun 29, 2013 | Jun 30, 2012 | |||||
Product warranty accrual, beginning | $ | 5,411 | $ | 4,187 | |||
Warranty charges incurred, net | (1,821 | ) | (2,044 | ) | |||
Provision for warranty charges | 1,603 | 2,402 | |||||
Product warranty accrual, ending | $ | 5,193 | $ | 4,545 |
Fiscal quarter ended | |||||||
(In thousands) | Jun 29, 2013 | Jun 30, 2012 | |||||
Deferred revenue, beginning | $ | 10,196 | $ | 10,751 | |||
Revenue deferred | 6,941 | 18,315 | |||||
Revenue recognized | (6,371 | ) | (18,390 | ) | |||
Deferred revenue, ending | $ | 10,766 | $ | 10,676 |
Fiscal quarter ended | |||||||
(In thousands, except per share data) | Jun 29, 2013 | Jun 30, 2012 | |||||
Net loss | $ | (3,283 | ) | $ | (944 | ) | |
Weighted average shares used for basic earnings per share | 29,745 | 29,116 | |||||
Incremental diluted shares | — | — | |||||
Weighted average shares used for diluted earnings per share | 29,745 | 29,116 | |||||
Net loss per share: | |||||||
Net loss—basic | $ | (0.11 | ) | $ | (0.03 | ) | |
Net loss—diluted | $ | (0.11 | ) | $ | (0.03 | ) |
Fiscal quarter ended | |||||||
(In thousands) | Jun 29, 2013 | Jun 30, 2012 | |||||
Interconnect & Microfabrication Group (IMG) | $ | 34,417 | $ | 47,698 | |||
Components Group (CG) | 6,142 | 7,705 | |||||
Semiconductor Group (SG) | 5,613 | 3,566 | |||||
$ | 46,172 | $ | 58,969 |
Fiscal quarter ended | |||||||
(In thousands) | Jun 29, 2013 | Jun 30, 2012 | |||||
Asia | $ | 37,693 | $ | 52,454 | |||
Americas | 6,070 | 4,174 | |||||
Europe | 2,409 | 2,341 | |||||
$ | 46,172 | $ | 58,969 |
Restructuring costs payable balance as of March 30, 2013 | $ | 485 | |
Employee severance and related benefits: | |||
Cash payments | (153 | ) | |
Other adjustments | (5 | ) | |
Restructuring costs payable balance as of June 29, 2013 | 327 |
Date Declared | Record Date | Payable Date | Amount per Share | |||
May 14, 2013 | June 5, 2013 | June 19, 2013 | $0.08 | |||
February 7, 2013 | February 28, 2013 | March 14, 2013 | $0.08 | |||
November 8, 2012 | November 21, 2012 | December 5, 2012 | $0.08 | |||
August 9, 2012 | August 24, 2012 | September 10, 2012 | $0.08 | |||
May 10, 2012 | June 4, 2012 | June 18, 2012 | $0.08 |
Fiscal quarter ended | |||||
Jun 29, 2013 | Jun 30, 2012 | ||||
Net sales | 100.0 | % | 100.0 | % | |
Cost of sales | 58.0 | 59.9 | |||
Gross profit | 42.0 | 40.1 | |||
Selling, service and administration | 31.6 | 26.5 | |||
Research, development and engineering | 18.2 | 16.2 | |||
Gain on acquisition of Semiconductor Systems business | (1.0 | ) | — | ||
Operating loss | (6.8 | ) | (2.6 | ) | |
Interest and other expense, net | (0.1 | ) | (0.3 | ) | |
Loss before income taxes | (6.9 | ) | (2.9 | ) | |
Provision for (benefit from) income taxes | 0.2 | (1.3 | ) | ||
Net loss | (7.1 | )% | (1.6 | )% |
Fiscal quarter ended | |||||||||||||
Jun 29, 2013 | Jun 30, 2012 | ||||||||||||
(In thousands, except percentages) | Net Sales | % of Net Sales | Net Sales | % of Net Sales | |||||||||
Interconnect & Microfabrication Group (IMG) | $ | 34,417 | 74.5 | % | $ | 47,698 | 80.9 | % | |||||
Components Group (CG) | 6,142 | 13.3 | 7,705 | 13.1 | |||||||||
Semiconductor Group (SG) | 5,613 | 12.2 | 3,566 | 6.0 | |||||||||
$ | 46,172 | 100.0 | % | $ | 58,969 | 100.0 | % |
Fiscal quarter ended | |||||||||||||
Jun 29, 2013 | Jun 30, 2012 | ||||||||||||
(In thousands, except percentages) | Net Sales | % of Net Sales | Net Sales | % of Net Sales | |||||||||
Asia | $ | 37,693 | 81.7 | % | $ | 52,454 | 89.0 | % | |||||
Americas | 6,070 | 13.1 | 4,174 | 7.0 | |||||||||
Europe | 2,409 | 5.2 | 2,341 | 4.0 | |||||||||
$ | 46,172 | 100.0 | % | $ | 58,969 | 100.0 | % |
Fiscal quarter ended | |||||||||||||
Jun 29, 2013 | Jun 30, 2012 | ||||||||||||
(In thousands, except percentages) | Gross Profit | % of Net Sales | Gross Profit | % of Net Sales | |||||||||
Gross Profit | $ | 19,386 | 42.0 | % | $ | 23,653 | 40.1 | % |
Fiscal quarter ended | |||||||||||||
Jun 29, 2013 | Jun 30, 2012 | ||||||||||||
(In thousands, except percentages) | Expense | % of Net Sales | Expense | % of Net Sales | |||||||||
Selling, service and administration | $ | 14,547 | 31.6 | % | $ | 15,663 | 26.5 | % | |||||
Research, development and engineering | 8,425 | 18.2 | 9,534 | 16.2 | |||||||||
Gain on acquisition of Semiconductor Systems business | (464 | ) | (1.0 | ) | — | — | |||||||
$ | 22,508 | 48.8 | % | $ | 25,197 | 42.7 | % |
Fiscal quarter ended | |||||||||||||
Jun 29, 2013 | Jun 30, 2012 | ||||||||||||
(In thousands, except percentages) | Interest and Other Expense, net | % of Net Sales | Interest and Other Expense, net | % of Net Sales | |||||||||
Interest and other expense, net | $ | (60 | ) | (0.1 | )% | $ | (150 | ) | (0.3 | )% |
Fiscal quarter ended | |||||||||||||
Jun 29, 2013 | Jun 30, 2012 | ||||||||||||
(In thousands, except percentages) | Income Tax Provision | Effective Tax Rate | Income Tax Benefit | Effective Tax Rate | |||||||||
Provision for (benefit from) income taxes | $ | 101 | (3.2 | )% | $ | (750 | ) | 44.3 | % |
Fiscal quarter ended | |||||||||||||
Jun 29, 2013 | Jun 30, 2012 | ||||||||||||
(In thousands, except percentages) | Net Loss | % of Net Sales | Net Loss | % of Net Sales | |||||||||
Net loss | $ | (3,283 | ) | (7.1 | )% | $ | (944 | ) | (1.6 | )% |
Date Declared | Record Date | Payable Date | Amount per Share | |||
May 14, 2013 | June 5, 2013 | June 19, 2013 | $0.08 | |||
February 7, 2013 | February 28, 2013 | March 14, 2013 | $0.08 | |||
November 8, 2012 | November 21, 2012 | December 5, 2012 | $0.08 | |||
August 9, 2012 | August 24, 2012 | September 10, 2012 | $0.08 | |||
May 10, 2012 | June 4, 2012 | June 18, 2012 | $0.08 |
• | changes in the timing of orders and terms or acceptance of product shipments by our customers; |
• | changes in the mix of products and services that we sell; |
• | timing and market acceptance of our new product introductions; |
• | timing of new application design wins; and |
• | delays or problems in the planned introduction of new products, or in the performance of any such products following delivery to customers. |
• | periodic local or geographic economic downturns and unstable political conditions; |
• | price and currency exchange controls; |
• | fluctuation in the relative values of currencies; |
• | difficulty in repatriating money, whether as a result of tax laws or otherwise; |
• | difficulties protecting intellectual property; |
• | compliance with labor laws and other laws governing employees; |
• | local labor disputes; |
• | shipping delays and disruptions; |
• | unexpected changes in trading policies, regulatory requirements, tariffs and other barriers; and |
• | difficulties in managing a global enterprise, including staffing, collecting accounts receivable, and managing suppliers, distributors and representatives. |
• | future tightening of immigration controls may adversely affect the residence status of non-U.S. engineers and other key technical employees in our U.S. facilities or our ability to hire new non-U.S. employees in such facilities; |
• | more frequent instances of shipping delays; |
• | demand for our products may not increase or may decrease; and |
• | our customers or suppliers may experience financial difficulties or cease operations. |
• | challenges in designing new facilities that can be scaled for future expansion, replicating current processes and bringing new facilities up to full operation; |
• | unpredictable costs, redundancy costs and cost overruns for developing new facilities and acquiring equipment; |
• | building local management teams, technical personnel and other staff for functions that we have not previously conducted outside of the United States; |
• | technical obstacles such as poor production or process yield and loss of quality control during the ramp of a new facility; |
• | re-qualifications and other procedures that may be required by our customers; |
• | our ability to bring up local suppliers to meet our quality and cycle-time needs; |
• | our ability to reduce costs in the United States as we add costs in Asia; |
• | rapidly changing business conditions that may require plans to be changed or abandoned before they are fully implemented; and |
• | challenges posed by distance and by differences in language and culture. |
• | difficulties and increased costs in connection with integration of the personnel, operations, technologies and products of the acquired businesses; |
• | implementation of our enterprise resource planning (ERP) system into the acquired company’s operations; |
• | diversion of management’s attention from other operational matters; |
• | the potential loss of key employees of the acquired company; |
• | lack of synergy or inability to realize expected synergies resulting from the acquisition; |
• | acquired assets becoming impaired as a result of technological advancements or worse-than-expected performance by the acquired company; |
• | difficulties establishing satisfactory internal controls at the acquired company; |
• | risks and uncertainties relating to the performance of the combined company following the transaction; and |
• | acquiring unanticipated liabilities for which we will not be indemnified. |
• | variations in operating results from quarter to quarter; |
• | changes in earnings estimates by analysts or our failure to meet analysts’ expectations; |
• | changes in the market price per share of our public company customers; |
• | market conditions in the semiconductor and other industries into which we sell products; |
• | general economic conditions; |
• | political changes, hostilities or natural disasters; |
• | low trading volume of our common stock; |
• | the number of analysts covering our common stock; and |
• | the number of firms making a market in our common stock. |
3.1 | Third Restated Articles of Incorporation, as amended. Incorporated by reference to Exhibit 3.1 of the Company's Annual Report on Form 10-K for the fiscal year ended April 3, 2010. | |
3.2 | 2009 Amended and Restated Bylaws, as amended. Incorporated by reference to Exhibit 3.1 of the Company’s Current Report on Form 8-K filed on November 9, 2012. | |
4.1 | Rights Agreement, dated as of May 18, 2009, between Electro Scientific Industries, Inc. and Mellon Investor Services. Incorporated by reference to Exhibit 4.1 of the Company's Current Report on Form 8-K filed on May 19, 2009. | |
31.1 | Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
31.2 | Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
32.1 | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
32.2 | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
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 * |
Date: | August 6, 2013 | ELECTRO SCIENTIFIC INDUSTRIES, INC. | |
By: | /s/ NICHOLAS KONIDARIS | ||
Nicholas Konidaris | |||
President and Chief Executive Officer | |||
(Principal Executive Officer) | |||
By: | /s/ Paul Oldham | ||
Paul Oldham | |||
Vice President of Administration, Chief Financial Officer and Corporate Secretary | |||
(Principal Financial Officer) | |||
By: | /s/ Kerry Mustoe | ||
Kerry Mustoe | |||
Vice President, Corporate Controller and Chief Accounting Officer | |||
(Principal Accounting Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of Electro Scientific Industries, Inc.; |
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. |
/s/ Nicholas Konidaris |
Nicholas Konidaris |
President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Electro Scientific Industries, Inc.; |
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. |
/s/ Paul Oldham |
Paul Oldham |
Vice President of Administration, |
Chief Financial Officer and Corporate Secretary |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Nicholas Konidaris |
Nicholas Konidaris |
President and Chief Executive Officer |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Paul Oldham |
Paul Oldham |
Vice President of Administration, |
Chief Financial Officer and Corporate Secretary |
Product Warranty
|
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 29, 2013
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Product Warranties Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranty | Product Warranty The following is a reconciliation of the changes in the aggregate product warranty accrual:
Net warranty charges incurred include labor charges and costs of replacement parts for system repairs under warranty. These costs are recorded net of any estimated cost recoveries resulting from either successful repair of damaged parts or from warranties offered by the Company’s suppliers for defective components. The provision for warranty charges reflects the estimate of future anticipated net warranty costs to be incurred for all products under warranty at quarter end and is recorded to cost of sales. |
Share-Based Compensation
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3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 29, 2013
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation | Share-Based Compensation The Company recognizes expense related to the fair value of its share-based compensation awards using the Black-Scholes model to estimate the fair value of awards on the date of grant, except for unvested restricted stock unit awards which are valued at the fair value of the Company's stock on the date of award. The Company recognizes compensation expense for all share-based compensation awards on a straight-line basis over the requisite service period of the award. Stock-settled stock appreciation rights (SARs) grant the right to receive shares of the Company's stock equivalent to the increase in stock value of a specified number of shares over a specified period of time, divided by the stock price at the time of exercise. The Company uses the Black-Scholes model to estimate the fair value of SARs. Similar to options, SARs are recorded at the fair value of the award at grant date and the expense is recognized on a straight-line basis over the requisite service period of the award. The Company granted a total of 611,500 and 189,500 restricted stock unit awards during the first quarter of 2014 and 2013, respectively. In the same periods, the Company did not grant any stock options or SARs. The increase in the number of grants made in the first quarter of 2014 over 2013, was the result of the timing of annual grants made in 2013, which occurred over the first and second quarters of 2013. Share-based compensation expense was included in the Company’s Condensed Consolidated Statements of Operations as follows:
No share-based compensation costs were capitalized in the first quarter of 2014. As of June 29, 2013, the Company had $9.9 million of total unrecognized share-based compensation costs, net of estimated forfeitures, which are expected to be recognized over a weighted average period of 2.3 years. |
Fair Value Measurements (Tables)
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3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 29, 2013
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Hierarchy for Financial Assets Measured at Fair Value on Recurring Basis | The Company’s fair value hierarchy for its financial assets measured at fair value on a recurring basis as of June 29, 2013 and March 30, 2013 was as follows (in thousands):
|
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Investments | Certain information regarding the Company’s investments at June 29, 2013 and March 30, 2013 was as follows (in thousands):
|
Deferred Revenue
|
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 29, 2013
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Deferred Revenue Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Revenue | Deferred Revenue Generally, revenue is recognized upon fulfillment of acceptance criteria at the Company's factory and title transfer which frequently occurs at the time of delivery to a common carrier. Revenue is deferred whenever title transfer is pending and/or acceptance criteria have not yet been fulfilled. Deferred revenue occurrences include sales to Japanese customers, shipments of substantially new products and shipments with custom specifications and acceptance criteria. In sales involving multiple element arrangements, the relative selling price of any undelivered elements, including installation services, is deferred until the elements are delivered and acceptance criteria are met. Revenue related to maintenance and service contracts is deferred and recognized ratably over the duration of the contracts. The following is a reconciliation of the changes in deferred revenue:
|
Product and Geographic Information - Net Sales by Product Type (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |
---|---|---|
Jun. 29, 2013
|
Jun. 30, 2012
|
|
Product Information | ||
Net sales | $ 46,172 | $ 58,969 |
Interconnect Microfabrication Group
|
||
Product Information | ||
Net sales | 34,417 | 47,698 |
Components Group
|
||
Product Information | ||
Net sales | 6,142 | 7,705 |
Semiconductor Group
|
||
Product Information | ||
Net sales | $ 5,613 | $ 3,566 |
Fair Value Measurements - Additional Information (Details) (USD $)
|
Jun. 29, 2013
|
Mar. 30, 2013
|
---|---|---|
Schedule of Available-for-sale Securities | ||
Cost Method Investments | $ 8,966,000 | $ 8,966,000 |
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Amortized Cost Basis | 69,200,000 | |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Amortized Cost Basis | 12,300,000 | |
Omni Guide, Inc.
|
||
Schedule of Available-for-sale Securities | ||
Cost Method Investments | 9,000,000 | |
Percentage Of Ownership Interests | 11.00% | |
Cost Method Investment Preferred Stock Class D [Member] | Omni Guide, Inc.
|
||
Schedule of Available-for-sale Securities | ||
Cost Method Investments | 6,000,000 | |
Cost Method Investment Preferred Stock Class E [Member] | Omni Guide, Inc.
|
||
Schedule of Available-for-sale Securities | ||
Cost Method Investments | $ 3,000,000 |
Other Assets (Tables)
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3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 29, 2013
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Disclosure Other Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets | Other assets consisted of the following as of:
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Other Current Assets (Tables)
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3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 29, 2013
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Disclosure Other Current Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Current Assets | Other current assets consisted of the following:
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(Loss) Earnings Per Share - Reconciliation of Weighted Average Shares Outstanding Used in Calculation of Basic and Diluted Earnings Per Share (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified |
3 Months Ended | |
---|---|---|
Jun. 29, 2013
|
Jun. 30, 2012
|
|
Earnings Per Share [Abstract] | ||
Net income (loss) | $ (3,283) | $ (944) |
Weighted average number of shares - basic | 29,745 | 29,116 |
Incremental diluted shares | 0 | 0 |
Weighted average shares used for diluted earnings per share | 29,745 | 29,116 |
Net (loss) income per share - basic | $ (0.11) | $ (0.03) |
Net (loss) income per share - diluted | $ (0.11) | $ (0.03) |
Shareholders' Equity (Tables)
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3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 29, 2013
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividend Declared and Paid | In December 2011, the Board of Directors adopted a dividend policy under which the Company intends to pay quarterly cash dividends. The following table summarizes the quarterly dividend declared and paid by the Company since the first quarter of 2013:
|
Inventories - Components of Inventories (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 29, 2013
|
Mar. 30, 2013
|
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials and purchased parts | $ 50,425 | $ 44,332 |
Work-in-process | 14,680 | 8,985 |
Finished goods | 8,969 | 9,750 |
Inventories | $ 74,074 | $ 63,067 |
Product and Geographic Information - Net Sales by Geographic Area (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |
---|---|---|
Jun. 29, 2013
|
Jun. 30, 2012
|
|
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | $ 46,172 | $ 58,969 |
Asia
|
||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 37,693 | 52,454 |
Americas
|
||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 6,070 | 4,174 |
Europe
|
||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | $ 2,409 | $ 2,341 |
(Loss) Earnings Per Share (Tables)
|
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 29, 2013
|
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Weighted Average Shares Outstanding Used in Calculation of Basic and Diluted Earnings Per Share | The following was a reconciliation of weighted average shares outstanding used in the calculation of basic and diluted earnings per share:
|
Accrued Liabilities (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 29, 2013
|
Mar. 30, 2013
|
Apr. 03, 2012
|
Mar. 31, 2012
|
---|---|---|---|---|
Disclosure Accrued Liabilities [Abstract] | ||||
Payroll-related liabilities | $ 5,782 | $ 7,918 | ||
Product warranty accrual | 5,193 | 5,411 | 4,545 | 4,187 |
Purchase order commitments and receipts | 3,257 | 2,533 | ||
Pension benefit liabilities | 1,514 | 1,501 | ||
Professional fees payable | 1,611 | 1,322 | ||
Freight accrual | 748 | 646 | ||
Income taxes payable | 3,145 | 2,884 | ||
Restructuring costs payable | 327 | 485 | ||
Customer deposits | 1,192 | 225 | ||
Value added taxes payable | 257 | 258 | ||
Other | 1,865 | 1,747 | ||
Accrued liabilities | $ 24,891 | $ 24,930 |
Inventories (Tables)
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3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 29, 2013
|
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Inventories | omponents of inventories were as follows:
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) (USD $)
|
3 Months Ended |
---|---|
Jun. 30, 2012
|
|
Foreign currency translation adjustment, taxes | $ (112) |
The Company
|
3 Months Ended |
---|---|
Jun. 29, 2013
|
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company | Basis of Presentation These unaudited interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted in these interim statements. Accordingly, these condensed consolidated financial statements are to be read in conjunction with the financial statements and notes included in the Company's Annual Report on Form 10-K for its fiscal year ended March 30, 2013. These interim statements include all adjustments (consisting of only normal recurring adjustments and accruals) necessary for a fair presentation of results for the interim periods presented. The results for interim periods are not necessarily indicative of the results of operations for the entire year. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of commitments and contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results may differ from those estimates. Management believes that the estimates used are reasonable. Significant estimates made by management include: revenue recognition; inventory valuation; product warranty reserves; allowance for doubtful accounts; accrued restructuring costs; share-based compensation; income taxes including the valuation of deferred tax assets; fair value measurements; valuation of cost method equity investments; valuation of long-lived assets; valuation of goodwill; and valuation of acquired technology. There have been no significant changes to the Company's significant accounting policies from those presented in Note 2 “Summary of Significant Accounting Policies” to the consolidated financial statements included in the Company's Annual Report on Form 10-K for its fiscal year ended March 30, 2013. All references to years or quarters relate to fiscal years or fiscal quarters unless otherwise noted. |
Fair Value Measurements
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Jun. 29, 2013
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Financial Assets Measured at Fair Value ASC Topic 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include the following:
The Company’s fair value hierarchy for its financial assets measured at fair value on a recurring basis as of June 29, 2013 and March 30, 2013 was as follows (in thousands):
For Level 1 assets, the Company utilized quoted prices in active markets for identical assets. For Level 2 assets, exclusive of forward contracts, the Company utilized quoted prices in active markets for similar assets. For forward contracts, spot prices at June 29, 2013 and March 30, 2013 were utilized to calculate fair values. During the first quarter of 2014, there were no transfers between Level 1 and Level 2 assets. As of June 29, 2013, the Company had $6.0 million invested in Series D Preferred Stock and $3.0 million invested in Series E Preferred Stock of OmniGuide, Inc., representing an 11% interest. At each reporting period end, the Company determines whether events or circumstances have occurred that are likely to have a significant adverse effect on the fair value of these investments. If there are no events or circumstances identified that would adversely affect the fair value of the investments, the fair values of the investments are not calculated as it is not practicable to do so. As of June 29, 2013 and March 30, 2013, management had not identified any events or circumstances that indicated the investments were impaired; therefore, as presented in Note 8 “Other Assets”, the full carrying value of $9.0 million was included in Other assets on the Condensed Consolidated Balance Sheets at June 29, 2013 and March 30, 2013. Investments Certain information regarding the Company’s investments at June 29, 2013 and March 30, 2013 was as follows (in thousands):
For purposes of determining gross realized gains and losses and reclassification out of accumulated other comprehensive income (loss), the cost of securities sold is based on specific identification. Net unrealized holding gains and losses on current available-for-sale securities included in accumulated other comprehensive income (loss) were insignificant as of June 29, 2013 and March 30, 2013. Underlying maturities of investments at June 29, 2013 were $69.2 million within one year and $12.3 million between one to five years. |
Recent Accounting Pronouncements
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3 Months Ended |
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Jun. 29, 2013
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New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In July 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2013-11, "Presentation of Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists". This update specifies that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. ASU 2013-11 is effective for fiscal years beginning after December 15, 2013. The Company expects that the adoption of this pronouncement will not have a material effect on its financial position, results of operations and cash flows. |
Other Current Assets (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 29, 2013
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Mar. 30, 2013
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Disclosure Other Current Assets [Abstract] | ||
Prepaid expenses | $ 2,101 | $ 2,240 |
Value added tax receivable | 729 | 763 |
Other | 1,064 | 895 |
Other current assets | $ 3,894 | $ 3,898 |
Accrued Liabilities (Tables)
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Jun. 29, 2013
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Disclosure Accrued Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Liabilities | Accrued liabilities consisted of the following:
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Product and Geographic Information (Tables)
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Jun. 29, 2013
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net sales by product type | Net sales by product type were as follows:
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Net sales by geographic area, based on location of end user | Net sales by geographic area, based on the location of the end user, were as follows:
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Fair Value Measurements - Investments (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 29, 2013
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Mar. 30, 2013
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Available for sale Securities Current
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Schedule of Available-for-sale Securities | ||
Cost | $ 69,175 | $ 90,530 |
Unrealized Gain | 6 | 15 |
Unrealized Loss | (5) | 0 |
Fair Value | 69,176 | 90,545 |
Available for sale Securities Current | Commercial Paper
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Schedule of Available-for-sale Securities | ||
Cost | 24,998 | 51,443 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Fair Value | 24,998 | 51,443 |
Available for sale Securities Current | Government agencies
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Schedule of Available-for-sale Securities | ||
Cost | 15,578 | 26,556 |
Unrealized Gain | 5 | 8 |
Unrealized Loss | 0 | 0 |
Fair Value | 15,583 | 26,564 |
Available for sale Securities Current | Corporate Bonds
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Schedule of Available-for-sale Securities | ||
Cost | 17,459 | 10,473 |
Unrealized Gain | 0 | 7 |
Unrealized Loss | (5) | 0 |
Fair Value | 17,454 | 10,480 |
Available for sale Securities Current | Municipal Bonds
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Schedule of Available-for-sale Securities | ||
Cost | 11,140 | 2,058 |
Unrealized Gain | 1 | 0 |
Unrealized Loss | 0 | 0 |
Fair Value | 11,141 | 2,058 |
Available for sale Securities Non Current
|
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Schedule of Available-for-sale Securities | ||
Cost | 12,310 | 12,335 |
Unrealized Gain | 0 | 1 |
Unrealized Loss | (11) | (7) |
Fair Value | 12,299 | 12,329 |
Available for sale Securities Non Current | Government agencies
|
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Schedule of Available-for-sale Securities | ||
Cost | 3,082 | |
Unrealized Gain | 0 | |
Unrealized Loss | 0 | |
Fair Value | 3,082 | |
Available for sale Securities Non Current | Corporate Bonds
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Schedule of Available-for-sale Securities | ||
Cost | 4,336 | 7,923 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | (9) | (7) |
Fair Value | 4,327 | 7,916 |
Available for sale Securities Non Current | Municipal Bonds
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Schedule of Available-for-sale Securities | ||
Cost | 7,974 | 1,330 |
Unrealized Gain | 0 | 1 |
Unrealized Loss | (2) | 0 |
Fair Value | $ 7,972 | $ 1,331 |