☒ |
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
|
Delaware
|
94-3125814
|
|
(State or other jurisdiction of
incorporation or organization)
|
(IRS Employer
Identification No.)
|
Title of each class
|
Trading
Symbol(s)
|
Name of each exchange
on which registered
|
||
Common Stock ($0.001 par value)
|
IVAC
|
The Nasdaq Stock Market LLC (Nasdaq) Global Select
|
Large accelerated filer
|
☐
|
Accelerated filer
|
☒
|
|||
Non-accelerated
filer
|
☐
|
Smaller reporting company
|
☒
|
|||
Emerging growth company
|
☐
|
No.
|
Page
|
|||||
Item 1.
|
||||||
3 | ||||||
4 | ||||||
5 | ||||||
6 | ||||||
7 | ||||||
Item 2.
|
24 | |||||
Item 3.
|
31 | |||||
Item 4.
|
31 | |||||
|
||||||
Item 1.
|
32 | |||||
Item 1A. | 32 | |||||
Item 2. | 38 | |||||
Item 3. | 38 | |||||
Item 4. | 38 | |||||
Item 5. | 38 | |||||
Item 6. | 39 | |||||
40 |
Item 1.
|
Financial Statements
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
July 3,
2021
|
June 27,
2020
|
July 3,
2021
|
June 27,
2020
|
|||||||||||||
(Unaudited)
(In thousands, except per share amounts)
|
||||||||||||||||
Net revenues:
|
||||||||||||||||
Systems and components
|
$ | 10,651 | $ | 22,725 | $ | 23,710 | $ | 36,561 | ||||||||
Technology development
|
3,162 | 6,117 | 6,344 | 11,121 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total net revenues
|
13,813 | 28,842 | 30,054 | 47,682 | ||||||||||||
Cost of net revenues:
|
||||||||||||||||
Systems and components
|
8,624 | 13,812 | 18,588 | 21,579 | ||||||||||||
Technology development
|
2,081 | 3,610 | 5,304 | 6,526 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total cost of net revenues
|
10,705 | 17,422 | 23,892 | 28,105 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Gross profit
|
3,108 | 11,420 | 6,162 | 19,577 | ||||||||||||
Operating expenses:
|
||||||||||||||||
Research and development
|
3,894 | 3,707 | 7,519 | 6,991 | ||||||||||||
Selling, general and administrative
|
5,525 | 5,609 | 11,455 | 11,581 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total operating expenses
|
9,419 | 9,316 | 18,974 | 18,572 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income (loss) from operations
|
(6,311 | ) | 2,104 | (12,812 | ) | 1,005 | ||||||||||
Interest income and other income (expense), net
|
20 | 62 | 50 | 204 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income (loss) before provision for (benefit from) income taxes
|
(6,291 | ) | 2,166 | (12,762 | ) | 1,209 | ||||||||||
Provision for (benefit from) income taxes
|
(165 | ) | 642 | (132 | ) | 909 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income (loss)
|
$ | (6,126 | ) | $ | 1,524 | $ | (12,630 | ) | $ | 300 | ||||||
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) per share:
|
||||||||||||||||
Basic
|
$ | (0.25 | ) | $ | 0.06 | $ | (0.52 | ) | $ | 0.01 | ||||||
Diluted
|
$ | (0.25 | ) | $ | 0.06 | $ | (0.52 | ) | $ | 0.01 | ||||||
Weighted average common shares outstanding:
|
||||||||||||||||
Basic
|
24,241 | 23,561 | 24,137 | 23,522 | ||||||||||||
Diluted
|
24,241 | 23,906 | 24,137 | 23,953 |
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
July 3,
2021
|
June 27,
2020
|
July 3,
2021
|
June 27,
2020
|
|||||||||||||
(Unaudited)
(In thousands)
|
||||||||||||||||
Net income (loss)
|
$ | (6,126 | ) | $ | 1,524 | $ | (12,630 | ) | $ | 300 | ||||||
|
|
|
|
|
|
|
|
|||||||||
Other comprehensive income (loss), before tax:
|
||||||||||||||||
Change in unrealized net gain on
available-for-sale
|
(9 | ) | 51 | (29 | ) | 53 | ||||||||||
Foreign currency translation gains (losses)
|
28 | 20 | (40 | ) | (75 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Other comprehensive income (loss), before tax
|
19 | 71 | (69 | ) | (22 | ) | ||||||||||
Income taxes related to items in other comprehensive income (loss)
|
— | — | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Other comprehensive income (loss), net of tax
|
19 | 71 | (69 | ) | (22 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Comprehensive income (loss)
|
$ | (6,107 | ) | $ | 1,595 | $ | (12,699 | ) | $ | 278 | ||||||
|
|
|
|
|
|
|
|
Six months ended
|
||||||||
July 3,
2021
|
June 27,
2020
|
|||||||
(Unaudited)
(In thousands)
|
||||||||
Operating activities
|
||||||||
Net income (loss)
|
$ | (12,630 | ) | $ | 300 | |||
Adjustments to reconcile net income (loss) to net cash and cash equivalents provided by operating activities:
|
||||||||
Depreciation and amortization
|
1,686 | 1,797 | ||||||
Net amortization (accretion) of investment premiums and discounts
|
62 | (26 | ) | |||||
Equity-based compensation
|
1,987 | 1,328 | ||||||
Straight-line rent adjustment and amortization of lease incentives
|
(231 | ) | (142 | ) | ||||
Deferred income taxes
|
(202 | ) | 426 | |||||
Changes in operating assets and liabilities
|
12,692 | (148 | ) | |||||
|
|
|
|
|||||
Total adjustments
|
15,994 | 3,235 | ||||||
|
|
|
|
|||||
Net cash and cash equivalents provided by operating activities
|
3,364 | 3,535 | ||||||
Investing activities
|
||||||||
Purchases of investments
|
(10,163 | ) | (12,213 | ) | ||||
Proceeds from sales and maturities of investments
|
9,815 | 14,510 | ||||||
Purchases of leasehold improvements and equipment
|
(365 | ) | (1,837 | ) | ||||
|
|
|
|
|||||
Net cash and cash equivalents provided by (used in) investing activities
|
(713 | ) | 460 | |||||
Financing activities
|
||||||||
Net proceeds from issuance of common stock
|
1,436 | 994 | ||||||
Common stock repurchases
|
— | (393 | ) | |||||
Taxes paid related to net share settlement
|
(532 | ) | (345 | ) | ||||
|
|
|
|
|||||
Net cash and cash equivalents provided by financing activities
|
904 | 256 | ||||||
Effect of exchange rate changes on cash and cash equivalents
|
(40 | ) | (74 | ) | ||||
|
|
|
|
|||||
Net increase in cash, cash equivalents and restricted cash
|
3,515 | 4,177 | ||||||
Cash, cash equivalents and restricted cash at beginning of period
|
30,128 | 20,554 | ||||||
|
|
|
|
|||||
Cash, cash equivalents and restricted cash at end of period
|
$ | 33,643 | $ | 24,731 | ||||
|
|
|
|
|||||
Non-cash
investing and financing activity
|
||||||||
Additions to
right-of-use-assets
|
$ | — | $ | 128 | ||||
|
|
|
|
1.
|
Description of Business and Basis of Presentation
|
2.
|
Revenue
|
TFE
|
Three Months Ended July 3, 2021
|
Three Months Ended June 27, 2020
|
||||||||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||
HDD
|
DCP
|
PV
|
ASP
|
Total
|
HDD
|
PV
|
Total
|
|||||||||||||||||||||||||
Systems, upgrades and spare parts
|
$ | 3,955 | $ | 3 | $ | 47 | $ | — | $ | 4,005 | $ | 15,226 | $ | 61 | $ | 15,287 | ||||||||||||||||
Field service
|
1,364 | — | — | — | 1,364 | 1,306 | 2 | 1,308 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total TFE net revenues
|
$ | 5,319 | $ | 3 | $ | 47 | $ | — | $ | 5,369 | $ | 16,532 | $ | 63 | $ | 16,595 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended July 3, 2021
|
Six Months Ended June 27, 2020
|
|||||||||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||
HDD
|
DCP
|
PV
|
ASP
|
Total
|
HDD
|
PV
|
Total
|
|||||||||||||||||||||||||
Systems, upgrades and spare parts
|
$ | 7,539 | $ | 3 | $ | 158 | $ | 3,850 | $ | 11,550 | $ | 21,587 | $ | 269 | $ | 21,856 | ||||||||||||||||
Field service
|
3,001 | 14 | 42 | — | 3,057 | 2,699 | 2 | 2,701 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total TFE net revenues
|
$ | 10,540 | $ | 17 | $ | 200 | $ | 3,850 | $ | 14,607 | $ | 24,286 | $ | 271 | $ | 24,557 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
Six Months Ended
|
|||||||||||||||
Photonics
|
July 3,
2021
|
June 27,
2020
|
July 3,
2021
|
June 27,
2020
|
||||||||||||
(In thousands)
|
||||||||||||||||
Products:
|
||||||||||||||||
Military products
|
$ | 4,958 | $ | 5,446 | $ | 8,209 | $ | 10,811 | ||||||||
Commercial products
|
50 | 39 | 178 | 118 | ||||||||||||
Repair and other services
|
274 | 645 | 716 | 1,075 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Photonics product net revenues
|
5,282 | 6,130 | 9,103 | 12,004 | ||||||||||||
Technology development:
|
||||||||||||||||
Firm Fixed Price (“FFP”)
|
1,543 | 5,462 | 3,348 | 9,892 | ||||||||||||
Cost Plus Fixed Fee (“CPFF”)
|
1,619 | 655 | 2,996 | 1,229 | ||||||||||||
Time and materials
|
— | — | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total technology development net revenues
|
3,162 | 6,117 | 6,344 | 11,121 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Photonics net revenues
|
$ | 8,444 | $ | 12,247 | $ | 15,447 | $ | 23,125 | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
Three Months Ended
|
|||||||||||||||||||||||
July 3, 2021
|
June 27, 2020
|
|||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
TFE
|
Photonics
|
Total
|
TFE
|
Photonics
|
Total
|
|||||||||||||||||||
United States
|
$ | 2,121 | $ | 8,371 | $ | 10,492 | $ | 313 | $ | 12,125 | $ | 12,438 | ||||||||||||
Asia
|
3,248 | — | 3,248 | 16,282 | — | 16,282 | ||||||||||||||||||
Europe
|
— | 73 | 73 | — | 122 | 122 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total net revenues
|
$ | 5,369 | $ | 8,444 | $ | 13,813 | $ | 16,595 | $ | 12,247 | $ | 28,842 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Six Months Ended
|
Six Months Ended
|
|||||||||||||||||||||||
July 3, 2021
|
June 27, 2020
|
|||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
TFE
|
Photonics
|
Total
|
TFE
|
Photonics
|
Total
|
|||||||||||||||||||
United States
|
$ | 2,488 | $ | 15,331 | $ | 17,819 | $ | 832 | $ | 22,981 | $ | 23,813 | ||||||||||||
Asia
|
8,269 | — | 8,269 | 23,725 | — | 23,725 | ||||||||||||||||||
Europe
|
3,850 | 116 | 3,966 | — | 144 | 144 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total net revenues
|
$ | 14,607 | $ | 15,447 | $ | 30,054 | $ | 24,557 | $ | 23,125 | $ | 47,682 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
Three Months Ended
|
|||||||||||||||||||||||
July 3, 2021
|
June 27, 2020
|
|||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
TFE
|
Photonics
|
Total
|
TFE
|
Photonics
|
Total
|
|||||||||||||||||||
Products transferred at a point in time
|
$ | 5,369 | $ | 274 | $ | 5,643 | $ | 16,595 | $ | 645 | $ | 17,240 | ||||||||||||
Products and services transferred over time
|
— | 8,170 | 8,170 | — | 11,602 | 11,602 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
$ | 5,369 | $ | 8,444 | $ | 13,813 | $ | 16,595 | $ | 12,247 | $ | 28,842 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Six Months Ended
|
Six Months Ended
|
|||||||||||||||||||||||
July 3, 2021
|
June 27, 2020
|
|||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
TFE
|
Photonics
|
Total
|
TFE
|
Photonics
|
Total
|
|||||||||||||||||||
Products transferred at a point in time
|
$ | 14,607 | $ | 645 | $ | 15,252 | $ | 24,557 | $ | 1,075 | $ | 25,632 | ||||||||||||
Products and services transferred over time
|
— | 14,802 | 14,802 | — | 22,050 | 22,050 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
$ | 14,607 | $ | 15,447 | $ | 30,054 | $ | 24,557 | $ | 23,125 | $ | 47,682 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
July 3,
2021
|
January 2,
2021
|
Six Months
Change
|
||||||||||
(In thousands)
|
||||||||||||
TFE:
|
||||||||||||
Contract assets:
|
||||||||||||
Accounts receivable, unbilled
|
$ | — | $ | 369 | $ | (369 | ) | |||||
|
|
|
|
|
|
|||||||
Contract liabilities:
|
||||||||||||
Deferred revenue
|
$ | 195 | $ | 482 | $ | (287 | ) | |||||
Customer advances
|
1 | 33 | (32 | ) | ||||||||
|
|
|
|
|
|
|||||||
$ | 196 | $ | 515 | $ | (319 | ) | ||||||
|
|
|
|
|
|
|||||||
Photonics:
|
||||||||||||
Contract assets:
|
||||||||||||
Accounts receivable, unbilled
|
$ | 1,410 | $ | 5,439 | $ | (4,029 | ) | |||||
Retainage
|
127 | 126 | 1 | |||||||||
|
|
|
|
|
|
|||||||
$ | 1,537 | $ | 5,565 | $ | (4,028 | ) | ||||||
|
|
|
|
|
|
|||||||
Contract liabilities:
|
||||||||||||
Deferred revenue
|
$ | 275 | $ | 779 | $ | (504 | ) | |||||
|
|
|
|
|
|
3.
|
Inventories
|
July 3,
2021 |
January 2,
2021 |
|||||||
(In thousands)
|
||||||||
Raw materials
|
$ | 11,007 | $ | 9,999 | ||||
Work-in-progress
|
5,046 | 4,832 | ||||||
Finished goods
|
4,471 | 6,858 | ||||||
|
|
|
|
|||||
$ | 20,524 | $ | 21,689 | |||||
|
|
|
|
4.
|
Equity-Based Compensation
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
July 3, 2021
|
June 27, 2020
|
July 3, 2021
|
June 27, 2020
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Equity-based compensation by type of award:
|
||||||||||||||||
Stock options
|
$ | 57 | $ | 149 | $ | 132 | $ | 364 | ||||||||
RSUs
|
656 | 450 | 1,200 | 816 | ||||||||||||
Employee stock purchase plan
|
306 | 57 | 655 | 148 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total equity-based compensation
|
$ | 1,019 | $ | 656 | $ | 1,987 | $ | 1,328 | ||||||||
|
|
|
|
|
|
|
|
Shares
|
Weighted-Average
Exercise Price |
|||||||
Options outstanding at January 2, 2021
|
1,814,467 | $ | 6.66 | |||||
Options granted
|
— | $ | — | |||||
Options cancelled and forfeited
|
(205,324 | ) | $ | 6.72 | ||||
Options exercised
|
(65,462 | ) | $ | 5.89 | ||||
|
|
|||||||
Options outstanding at July 3, 2021
|
1,543,681 | $ | 6.57 | |||||
|
|
|||||||
Options exercisable at July 3, 2021
|
1,317,356 | $ | 6.78 | |||||
|
|
Six Months Ended
|
||||
June 27, 2020
|
||||
Stock Options:
|
||||
Weighted-average fair value of grants per share
|
$1.82 | |||
Expected volatility
|
46.06% | |||
Risk-free interest rate
|
0.44% | |||
Expected term of options (in years)
|
4.39 | |||
Dividend yield
|
None |
Six Months Ended
|
||||||||
July 3, 2021
|
June 27, 2020
|
|||||||
ESPP Purchase Rights:
|
||||||||
Weighted-average fair value of grants per share
|
$2.69 | $1.66 | ||||||
Expected volatility
|
58.56% | 36.69% | ||||||
Risk-free interest rate
|
0.08% | 1.56% | ||||||
Expected term of purchase rights (in years)
|
1.0 | 0.5 | ||||||
Dividend yield
|
None | None |
Shares
|
Weighted-Average
Grant Date
Fair Value
|
|||||||
Non-vested
RSUs at January 2, 2021
|
901,634 | $ | 5.30 | |||||
Granted
|
538,022 | $ | 6.29 | |||||
Vested
|
(293,824 | ) | $ | 6.08 | ||||
Cancelled and forfeited
|
(44,775 | ) | $ | 3.96 | ||||
|
|
|||||||
Non-vested
RSUs at July 3, 2021
|
1,101,057 | $ | 5.63 | |||||
|
|
Three Months Ended
|
||
July 3, 2021
|
||
Weighted-average fair value of grants per share
|
$7.65 | |
Expected volatility
|
56.26% | |
Risk-free interest rate
|
0.15% | |
Dividend yield
|
None |
Three Months Ended
|
||||
June 27, 2020
|
||||
Weighted-average fair value of grants per share
|
$ | 3.16 | ||
Expected volatility
|
46.7 | % | ||
Risk-free interest rate
|
0.25 | % | ||
Dividend yield
|
None |
5.
|
Warranty
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
July 3,
2021
|
June 27,
2020
|
July 3,
2021
|
June 27,
2020
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Opening balance
|
$ | 590 | $ | 725 | $ | 480 | $ | 1,022 | ||||||||
Expenditures incurred under warranties
|
(217 | ) | (189 | ) | (415 | ) | (308 | ) | ||||||||
Accruals for product warranties issued during the reporting period
|
198 | 135 | 473 | 159 | ||||||||||||
Adjustments to previously existing warranty accruals
|
1 | (9 | ) | 34 | (211 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Closing balance
|
$ | 572 | $ | 662 | $ | 572 | $ | 662 | ||||||||
|
|
|
|
|
|
|
|
July 3,
2021 |
January 2,
2021 |
|||||||
(In thousands)
|
||||||||
Other accrued liabilities
|
$ | 527 | $ | 405 | ||||
Other long-term liabilities
|
45 | 75 | ||||||
|
|
|
|
|||||
Total warranty provision
|
$ | 572 | $ | 480 | ||||
|
|
|
|
6.
|
Guarantees
|
7.
|
Cash, Cash Equivalents and Investments
|
July 3, 2021
|
||||||||||||||||
Amortized Cost
|
Unrealized
Holding Gains |
Unrealized
Holding Losses |
Fair Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Cash and cash equivalents:
|
||||||||||||||||
Cash
|
$ | 28,477 | $ | — | $ | — | $ | 28,477 | ||||||||
Money market funds
|
4,379 | — | — | 4,379 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total cash and cash equivalents
|
$ | 32,856 | $ | — | $ | — | $ | 32,856 | ||||||||
Short-term investments:
|
||||||||||||||||
Certificates of deposit
|
$ | 7,550 | $ | 3 | $ | — | $ | 7,553 | ||||||||
Corporate bonds and medium-term notes
|
4,505 | 2 | — | 4,507 | ||||||||||||
Municipal bonds
|
740 | — | — | 740 | ||||||||||||
U.S. treasury and agency securities
|
2,999 | 6 | — | 3,005 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total short-term investments
|
$ | 15,794 | $ | 11 | $ | — | $ | 15,805 | ||||||||
Long-term investments:
|
||||||||||||||||
Certificates of deposit
|
$ | 500 | $ | — | $ | 1 | $ | 499 | ||||||||
Corporate bonds and medium-term notes
|
2,020 | — | 1 | 2,019 | ||||||||||||
U.S. treasury and agency securities
|
2,161 | 1 | 1 | 2,161 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total long-term investments
|
$ | 4,681 | $ | 1 | $ | 3 | $ | 4,679 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total cash, cash equivalents, and investments
|
$ | 53,331 | $ | 12 | $ | 3 | $ | 53,340 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
January 2, 2021
|
||||||||||||||||
Amortized Cost
|
Unrealized
Holding Gains |
Unrealized
Holding Losses |
Fair Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Cash and cash equivalents:
|
||||||||||||||||
Cash
|
$ | 24,729 | $ | — | $ | — | $ | 24,729 | ||||||||
Money market funds
|
3,612 | — | — | 3,612 | ||||||||||||
Certificates of deposit
|
1,000 | — | — | 1,000 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total cash and cash equivalents
|
$ | 29,341 | $ | — | $ | — | $ | 29,341 | ||||||||
Short-term investments:
|
||||||||||||||||
Certificates of deposit
|
$ | 6,450 | $ | 2 | $ | — | $ | 6,452 | ||||||||
Commercial paper
|
500 | — | — | 500 | ||||||||||||
Corporate bonds and medium-term notes
|
2,929 | 6 | — | 2,935 | ||||||||||||
Municipal bonds
|
400 | — | — | 400 | ||||||||||||
U.S. treasury and agency securities
|
4,527 | 25 | — | 4,552 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total short-term investments
|
$ | 14,806 | $ | 33 | $ | — | $ | 14,839 | ||||||||
Long-term investments:
|
||||||||||||||||
Certificates of deposit
|
$ | 500 | $ | — | $ | — | $ | 500 | ||||||||
Corporate bonds and medium-term notes
|
3,474 | 4 | — | 3,478 | ||||||||||||
U.S. treasury and agency securities
|
1,409 | 1 | — | 1,410 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total long-term investments
|
$ | 5,383 | $ | 5 | $ | — | $ | 5,388 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total cash, cash equivalents, and investments
|
$ | 49,530 | $ | 38 | $ | — | $ | 49,568 | ||||||||
|
|
|
|
|
|
|
|
Amortized
Cost |
Fair
Value |
|||||||
(In thousands)
|
||||||||
Due in one year or less
|
$ | 20,173 | $ | 20,184 | ||||
Due after one through five years
|
4,681 | 4,679 | ||||||
|
|
|
|
|||||
$ | 24,854 | $ | 24,863 | |||||
|
|
|
|
July 3, 2021
|
||||||||||||||||
In Loss Position for
Less than 12 Months
|
In Loss Position for
Greater than 12 Months
|
|||||||||||||||
Fair Value
|
Gross
Unrealized
Losses |
Fair Value
|
Gross
Unrealized
Losses |
|||||||||||||
(In thousands)
|
||||||||||||||||
Certificates of deposit
|
$ | 999 | $ | 1 | $ | — | $ | — | ||||||||
Corporate bonds and medium-term notes
|
3,085 | 1 | — | — | ||||||||||||
U.S. treasury and agency securities
|
751 | 1 | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 4,835 | $ | 3 | $ | — | $ | — | |||||||||
|
|
|
|
|
|
|
|
Fair Value Measurements
at July 3, 2021
|
||||||||||||
Total
|
Level 1
|
Level 2
|
||||||||||
(In thousands)
|
||||||||||||
Recurring fair value measurements:
|
||||||||||||
Available-for-sale
|
||||||||||||
Money market funds
|
$ | 4,379 | $ | 4,379 | $ | — | ||||||
U.S. treasury and agency securities
|
5,166 | 5,166 | — | |||||||||
Certificates of deposit
|
8,052 | — | 8,052 | |||||||||
Corporate bonds and medium-term notes
|
6,526 | — | 6,526 | |||||||||
Municipal bonds
|
740 | — | 740 | |||||||||
|
|
|
|
|
|
|||||||
Total recurring fair value measurements
|
$ | 24,863 | $ | 9,545 | $ | 15,318 | ||||||
|
|
|
|
|
|
8.
|
Derivative Instruments
|
Notional Amounts
|
Derivative Liabilities
|
|||||||||||||||||||||||
Derivative Instrument
|
July 3,
2021
|
January 2,
2021
|
July 3,
2021
|
January 2,
2021
|
||||||||||||||||||||
Balance
Sheet
Line
|
Fair
Value
|
Balance
Sheet
Line
|
Fair
Value
|
|||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Undesignated Hedges:
|
||||||||||||||||||||||||
Forward Foreign Currency Contracts
|
$ | 520 | $ | 983 |
*
|
$ | 3 |
*
|
|
$ | 3 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Total Hedges
|
$ | 520 |
$
|
983 | $ | 3 | $ | 3 | ||||||||||||||||
|
|
|
|
|
|
|
|
* |
Other accrued liabilities
|
9.
|
Equity
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
July 3,
2021
|
June 27,
2020
|
July 3,
2021
|
June 27,
2020
|
|||||||||||||
(In thousands, except per share amounts)
|
||||||||||||||||
Shares of common stock repurchased
|
— | — | — | 98 | ||||||||||||
Cost of stock repurchased
|
$ | — | $ | — | $ | — | $ | 393 | ||||||||
Average price paid per share
|
$ | — | $ | — | $ | — | $ | 3.97 |
Three months ended July 3, 2021
|
||||||||||||||||||||
Common
Stock and Additional
Paid-in
Capital |
Treasury
Stock |
Accumulated
Other Comprehensive Income |
Accumulated
Deficit |
Total
Stockholders’ Equity |
||||||||||||||||
Balance at April 3, 2021
|
$ | 195,388 | $ | (29,551 | ) | $ | 552 | $ | (69,234 | ) | $ | 97,155 | ||||||||
Common stock issued under employee plans
|
193 | — | — | — | 193 | |||||||||||||||
Shares withheld for net share settlement of RSUs
|
(512 | ) | — | — | — | (512 | ) | |||||||||||||
Equity-based compensation expense
|
1,019 | — | — | — | 1,019 | |||||||||||||||
Net loss
|
— | — | — | (6,126 | ) | (6,126 | ) | |||||||||||||
Other comprehensive income
|
— | — | 19 | — | 19 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance at July 3, 2021
|
$ | 196,088 | $ | (29,551 | ) | $ | 571 | $ | (75,360 | ) | $ | 91,748 | ||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Six months ended July 3, 2021
|
||||||||||||||||||||
Common
Stock and Additional
Paid-in
Capital |
Treasury
Stock |
Accumulated
Other Comprehensive Income |
Accumulated
Deficit |
Total
Stockholders’ Equity |
||||||||||||||||
Balance at January 2, 2021
|
$ | 193,197 | $ |
(29, 551
|
) | $ | 640 | $ | (62,730 | ) | $ | 101,556 | ||||||||
Common stock issued under employee plans
|
1,436 | — | — | — | 1,436 | |||||||||||||||
Shares withheld for net share settlement of RSUs
|
(532 | ) | — | — | — | (532 | ) | |||||||||||||
Equity-based compensation expense
|
1,987 | — | — | — | 1,987 | |||||||||||||||
Net loss
|
— | — | — | (12,630 | ) | (12,630 | ) | |||||||||||||
Other comprehensive loss
|
— | — | (69 | ) | — | (69 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance at July 3, 2021
|
$ | 196,088 | $ | (29,551 | ) | $ | 571 | $ | (75,360 | ) | $ | 91,748 | ||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Three months ended June 27, 2020
|
||||||||||||||||||||
Common
Stock and Additional
Paid-in
Capital |
Treasury
Stock |
Accumulated
Other Comprehensive Income |
Accumulated
Deficit |
Total
Stockholders’ Equity |
||||||||||||||||
Balance at March 28, 2020
|
$ | 189,899 | $ | (29,551 | ) | $ | 331 | $ | (65,010 | ) | $ | 95,669 | ||||||||
Common stock issued under employee plans
|
44 | — | — | — | 44 | |||||||||||||||
Shares withheld for net share settlement of RSUs
|
(309 | ) | — | — | — | (309 | ) | |||||||||||||
Equity-based compensation expense
|
656 | — | — | — | 656 | |||||||||||||||
Net income
|
— | — | — | 1,524 | 1,524 | |||||||||||||||
Other comprehensive income
|
— | — | 71 | — | 71 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance at June 27, 2020
|
$ | 190,290 | $ | (29,551 | ) | $ | 402 | $ | (63,486 | ) | $ | 97,655 | ||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Six months ended June 27, 2020
|
||||||||||||||||||||
Common
Stock and Additional
Paid-in
Capital |
Treasury
Stock |
Accumulated
Other Comprehensive Income |
Accumulated
Deficit |
Total
Stockholders’ Equity |
||||||||||||||||
Balance at December 28, 2019
|
$ | 188,313 | $ | (29,158 | ) | $ | 424 | $ | (63,786 | ) | $ | 95,793 | ||||||||
Common stock issued under employee plans
|
994 | — | — | — | 994 | |||||||||||||||
Shares withheld for net share settlement of RSUs
|
(345 | ) | — | — | — | (345 | ) | |||||||||||||
Equity-based compensation expense
|
1,328 | — | — | — | 1,328 | |||||||||||||||
Net income
|
— | — | — | 300 | 300 | |||||||||||||||
Other comprehensive loss
|
— | — | (22 | ) | — | (22 | ) | |||||||||||||
Common stock repurchases
|
— | (393 | ) | — | — | (393 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance at June 27, 2020
|
$ | 190,290 | $ | (29,551 | ) | $ | 402 | $ | (63,486 | ) | $ | 97,655 | ||||||||
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||||||||||
July 3, 2021
|
||||||||||||||||||||||||
Foreign
currency
|
Unrealized
holding gains (losses) on
available-for-sale
investments |
Total
|
Foreign
currency |
Unrealized
holding gains (losses) on
available-for-sale
investments |
Total
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Beginning balance
|
$ | 534 | $ | 18 | $ | 552 | $ | 602 | $ | 38 | $ | 640 | ||||||||||||
Other comprehensive income (loss) before reclassification
|
28 | (9 | ) | 19 | (40 | ) | (29 | ) | (69 | ) | ||||||||||||||
Amounts reclassified from other comprehensive income
|
— | — | — | — | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net current-period other comprehensive income (loss)
|
28 | (9 | ) | 19 | (40 | ) | (29 | ) | (69 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Ending balance
|
$ | 562 | $ | 9 | $ | 571 | $ | 562 | $ | 9 | $ | 571 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Three Months Ended
|
Six Months Ended
|
|||||||||||||||||||||||
June 27, 2020
|
||||||||||||||||||||||||
Foreign
currency
|
Unrealized
holding gains on
available-for-sale
investments |
Total
|
Foreign
currency |
Unrealized
holding gains on
available-for-sale
investments |
Total
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Beginning balance
|
$ | 286 | $ | 45 | $ | 331 | $ | 381 | $ | 43 | $ | 424 | ||||||||||||
Other comprehensive income (loss) before reclassification
|
20 | 51 | 71 | (75 | ) | 53 | (22 | ) | ||||||||||||||||
Amounts reclassified from other comprehensive income
|
— | — | — | — | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net current-period other comprehensive income (loss)
|
20 | 51 | 71 | (75 | ) | 53 | (22 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Ending balance
|
$ | 306 | $ | 96 | $ | 402 | $ | 306 | $ | 96 | $ | 402 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
10.
|
Net Income (Loss) Per Share
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
July 3, 2021
|
June 27, 2020
|
July 3, 2021
|
June 27, 2020
|
|||||||||||||
(In thousands, except per share amounts)
|
||||||||||||||||
Net income (loss)
|
$ | (6,126 | ) | $ | 1,524 | $ | (12,630 | ) | $ | 300 | ||||||
Weighted-average shares – basic
|
24,241 | 23,561 | 24,137 | 23,522 | ||||||||||||
Effect of dilutive potential common shares
|
— | 345 | — | 431 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted-average shares – diluted
|
24,241 | 23,906 | 24,137 | 23,953 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) per share – basic
|
$ | (0.25 | ) | $ | 0.06 | $ | (0.52 | ) | $ | 0.01 | ||||||
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) per share – diluted
|
$ | (0.25 | ) | $ | 0.06 | $ | (0.52 | ) | $ | 0.01 | ||||||
|
|
|
|
|
|
|
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||