☒ |
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
|
|||||||||||||||
July 3, 2021
|
June 27, 2020
|
July 3, 2021
|
June 27, 2020
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Stock options to purchase common stock
|
1,544 | 1,596 | 1,544 | 1,596 | ||||||||||||
RSUs
|
1,101 | 19 | 1,101 | 19 | ||||||||||||
Employee stock purchase plan
|
8 | 2 | 8 | 2 |
11.
|
Segment Reporting
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
July 3,
2021
|
June 27,
2020
|
July 3,
2021
|
June 27,
2020
|
|||||||||||||
(In thousands)
|
||||||||||||||||
TFE
|
$ | 5,369 | $ | 16,595 | $ | 14,607 | $ | 24,557 | ||||||||
Photonics
|
8,444 | 12,247 | 15,447 | 23,125 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total segment net revenues
|
$ | 13,813 | $ | 28,842 | $ | 30,054 | $ | 47,682 | ||||||||
|
|
|
|
|
|
|
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
July 3,
2021
|
June 27,
2020
|
July 3,
2021
|
June 27,
2020
|
|||||||||||||
(In thousands)
|
||||||||||||||||
TFE
|
$ | (4,305 | ) | $ | (174 | ) | $ | (8,306 | ) | $ | (2,705 | ) | ||||
Photonics
|
(255 | ) | 3,536 | (1,401 | ) | 6,448 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total income (loss) from segment operations
|
(4,560 | ) | 3,362 | (9,707 | ) | 3,743 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Unallocated costs
|
(1,751 | ) | (1,258 | ) | (3,105 | ) | (2,738 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
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 | ||||||
|
|
|
|
|
|
|
|
July 3,
2021
|
January 2,
2021
|
|||||||
(In thousands)
|
||||||||
TFE
|
$ | 31,734 | $ | 44,335 | ||||
Photonics
|
17,837 | 22,923 | ||||||
|
|
|
|
|||||
Total segment assets
|
49,571 | 67,258 | ||||||
|
|
|
|
|||||
Cash, cash equivalents and investments
|
53,340 | 49,568 | ||||||
Restricted cash
|
787 | 787 | ||||||
Deferred income taxes
|
5,537 | 5,335 | ||||||
Other current assets
|
1,083 | 1,093 | ||||||
Common property, plant and equipment
|
1,206 | 1,443 | ||||||
Common operating lease
right-of-use
|
1,381 | 1,603 | ||||||
Other assets
|
164 | 151 | ||||||
|
|
|
|
|||||
Consolidated total assets
|
$ | 113,069 | $ | 127,238 | ||||
|
|
|
|
12.
|
Income Taxes
|
13.
|
Restructuring Charges
|
Six Months
Ended
July 3,
2021
|
||||
(In thousands)
|
||||
Beginning balance
|
$ | — | ||
Provision for restructuring reserves
|
43 | |||
Cash payments made
|
(43 | ) | ||
|
|
|||
Ending balance
|
$ | — | ||
|
|
14.
|
Commitments and Contingencies
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
Three months ended
|
Six months ended
|
|||||||||||||||||||||||
July 3,
2021
|
June 27,
2020
|
Change over
prior period
|
July 3,
2021
|
June 27,
2020
|
Change over
prior period
|
|||||||||||||||||||
(In thousands, except percentages and per share amounts)
|
||||||||||||||||||||||||
Net revenues
|
$ | 13,813 | $ | 28,842 | $ | (15,029 | ) | $ | 30,054 | $ | 47,682 | $ | (17,628 | ) | ||||||||||
Gross profit
|
$ | 3,108 | $ | 11,420 | $ | (8,312 | ) | $ | 6,162 | $ | 19,577 | $ | (13,415 | ) | ||||||||||
Gross margin percent
|
22.5 | % | 39.6 | % | (17.1) points | 20.5 | % | 41.1 | % | (20.6) points | ||||||||||||||
Income (loss) from operations
|
$ | (6,311 | ) | $ | 2,104 | $ | (8,415 | ) | $ | (12,812 | ) | $ | 1,005 | $ | (13,817 | ) | ||||||||
Net income (loss)
|
$ | (6,126 | ) | $ | 1,524 | $ | (7,650 | ) | $ | (12,630 | ) | $ | 300 | $ | (12,930 | ) | ||||||||
Net income (loss) per diluted share
|
$ | (0.25 | ) | $ | 0.06 | $ | (0.31 | ) | $ | (0.52 | ) | $ | 0.01 | $ | (0.53 | ) |
Three months ended
|
Six months ended
|
|||||||||||||||||||||||
July 3,
2021
|
June 27,
2020
|
Change over
prior period
|
July 3,
2021
|
June 27,
2020
|
Change over
prior period
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
TFE
|
$ | 5,369 | $ | 16,595 | $ | (11,226 | ) | $ | 14,607 | $ | 24,557 | $ | (9,950 | ) | ||||||||||
Photonics:
|
||||||||||||||||||||||||
Products
|
5,282 | 6,130 | (848 | ) | 9,103 | 12,004 | (2,901 | ) | ||||||||||||||||
Contract R&D
|
3,162 | 6,117 | (2,955 | ) | 6,344 | 11,121 | (4,777 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
8,444 | 12,247 | (3,803 | ) | 15,447 | 23,125 | (7,678 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total net revenues
|
$ | 13,813 | $ | 28,842 | $ | (15,029 | ) | $ | 30,054 | $ | 47,682 | $ | (17,628 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
July 3,
2021
|
January 2,
2021
|
June 27,
2020
|
||||||||||
(In thousands)
|
||||||||||||
TFE
|
$ | 18,943 | $ | 5,623 | $ | 14,567 | ||||||
Photonics
|
32,726 | 41,317 | 54,424 | |||||||||
|
|
|
|
|
|
|||||||
Total backlog
|
$ | 51,669 | $ | 46,940 | $ | 68,991 | ||||||
|
|
|
|
|
|
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
|
Six months ended
|
|||||||||||||||||||||||
July 3,
2021
|
June 27,
2020
|
Change over
prior period
|
July 3,
2021
|
June 27,
2020
|
Change over
prior period
|
|||||||||||||||||||
(In thousands, except percentages)
|
||||||||||||||||||||||||
TFE gross profit
|
$ | 1,006 | $ | 6,047 | $ | (5,041 | ) | $ | 3,140 | $ | 9,547 | $ | (6,407 | ) | ||||||||||
% of TFE net revenues
|
18.7 | % | 36.4 | % | 21.5 | % | 38.9 | % | ||||||||||||||||
Photonics gross profit
|
$ | 2,102 | $ | 5,373 | $ | (3,271 | ) | $ | 3,022 | $ | 10,030 | $ | (7,008 | ) | ||||||||||
% of Photonics net revenues
|
24.9 | % | 43.9 | % | 19.6 | % | 43.4 | % | ||||||||||||||||
Total gross profit
|
$ | 3,108 | $ | 11,420 | $ | (8,312 | ) | $ | 6,162 | $ | 19,577 | $ | (13,415 | ) | ||||||||||
% of net revenues
|
22.5 | % | 39.6 | % | 20.5 | % | 41.1 | % |
Three months ended
|
Six months ended
|
|||||||||||||||||||||||
July 3,
2021
|
June 27,
2020
|
Change over
prior period
|
July 3,
2021
|
June 27,
2020
|
Change over
prior period
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Research and development expense
|
$ | 3,894 | $ | 3,707 | $ | 187 | $ | 7,519 | $ | 6,991 | $ | 528 |
July 3,
2021
|
January 2,
2021
|
|||||||
(In thousands)
|
||||||||
Cash and cash equivalents
|
$ | 32,856 | $ | 29,341 | ||||
Restricted cash
|
787 | 787 | ||||||
Short-term investments
|
15,805 | 14,839 | ||||||
Long-term investments
|
4,679 | 5,388 | ||||||
|
|
|
|
|||||
Total cash, cash equivalents, restricted cash and investments
|
$ | 54,127 | $ | 50,355 | ||||
|
|
|
|
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 3.
|
Defaults upon Senior Securities
|
Item 4.
|
Mine Safety Disclosures
|
Item 5.
|
Other Information
|
Item 6.
|
Exhibits
|
Exhibit
Number |
Description
|
|
10.1 | The Registrant’s 2003 Employee Stock Purchase Plan, as amended February 17, 2021* | |
10.2 | 2021 Form of Performance Based Restricted Stock Unit Agreement for 2020 Equity Incentive Plan | |
31.1 | Certification of President and Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
31.2 | Certification of Executive Vice President, Finance and Administration, Chief Financial Officer, Treasurer and Secretary Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
32.1 | Certifications Pursuant to U.S.C. 1350 Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. ** | |
101 |
The following financial statements from the Registrant’s Quarterly Report on Form
10-Q
for the quarter ended July 3, 2021, formatted in Inline XBRL (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations, (iii) Condensed Consolidated Statements of Comprehensive Income (Loss), (iv) Condensed Consolidated Statements of Cash Flows, and (v) Notes to Condensed Consolidated Financial Statements.
|
|
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
* |
Previously filed as an exhibit to the Registrant’s Definitive Proxy Statement filed April 14, 2021.
|
** |
The certification attached as Exhibit 32.1 is deemed “furnished” and not deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 and is not to be incorporated by reference into any filing of Intevac, Inc. under the Securities Exchange Act of 1933 or the Securities Exchange Act of 1934, whether made before or after the date hereof, irrespective of any general incorporation by reference language contained in any such filing, except to the extent that the registrant specifically incorporates it by reference.
|
INTEVAC, INC.
|
||||||
Date: August 3, 2021
|
By:
|
/s/ WENDELL BLONIGAN
|
||||
Wendell Blonigan
|
||||||
President and Chief Executive Officer
|
||||||
(Principal Executive Officer)
|
||||||
Date: August 3, 2021
|
By:
|
/s/ JAMES MONIZ
|
||||
James Moniz
|
||||||
Executive Vice President, Finance and Administration,
|
||||||
Chief Financial Officer, Secretary and Treasurer
|
||||||
(Principal Financial and Accounting Officer)
|
Exhibit 10.2
[PERFORMANCE-BASED] |
||||
2020 EQUITY INCENTIVE PLAN
|
||||
ADDRESS_LINE_1 |
|
|||
ADDRESS_LINE_2 |
|
|||
ADDRESS_LINE_3 |
|
CITY, STATE% ZIPCODE |
Dear
NOTICE OF RSU GRANT (PERFORMANCE-BASED)
Congratulations. We, Intevac, Inc. (the Company), pursuant to our 2020 Equity Incentive Plan (the Plan), hereby grants you an award (the award or Award) of restricted stock units (the RSUs or Restricted Stock Units) to receive the number of Shares as set forth below. Unless otherwise stated, all capitalized terms within this Restricted Stock Unit Agreement (the Agreement), which includes this Notice of RSU Grant (Performance-Based) (the Notice of Grant) and the Terms and Conditions of Restricted Stock Unit Grant Performance-Based, shall be interpreted as defined in the Plan. The following documents are linked to this notification and are also available on the Intevac Portal under the Stock Plans page:
|
Terms and Conditions of Restricted Stock Unit Grant Performance-Based |
|
2020 Equity Incentive Plan |
|
2020 Equity Incentive Plan Prospectus |
By accepting this Notice of Grant, you are agreeing to the electronic availability of the documents disclosed above. If you need a hard copy of any of the documents, please contact Janice Smith or myself, and one will be provided to you at no charge.
Name of Award Grantee: |
|
|
Grantee Employee ID Number: |
|
|
Award Number: |
|
|
Date of Award Grant: |
|
|
Vesting Commencement Date: |
|
|
Target Number of RSUs: |
|
|
Maximum Number of RSUs: |
200% of Target Number of RSUs |
Vesting Schedule:
The RSUs will vest in accordance with the following schedule:
General
The number of RSUs subject to the award that will become eligible for vesting as set forth below will depend upon the Company TSR (as defined below) relative to the total stockholder returns of the Benchmark Peers (as defined below) for the Performance Period (as defined below) and will be determined in accordance with this Agreement (the Companys Relative TSR Performance). The determination as to the Companys Relative TSR Performance will be made in the sole discretion of the Compensation Committee of the Board (the Compensation Committee) within sixty (60) days following the Period End Date (as defined below), but in all cases prior to the consummation of a Change in Control (as such term is defined in the Plan) (the date the Compensation Committee makes such determination, the Performance Assessment Date).
Performance Period
The Performance Period will begin on the Date of the Award (the Commencement Date) and end on (and include) the two (2) year anniversary of the Date of the Award (the Anniversary Date).
[PERFORMANCE-BASED] |
||||
Notwithstanding the foregoing, in the event of a Change in Control, the Performance Period will be deemed to end upon the consummation of the Change in Control (the Closing) for purposes of calculating the Company TSR and the Benchmark Peer TSR for each Benchmark Peer. The first to occur of the Anniversary Date or the Closing is referred to herein as the Period End Date.
Companys Relative TSR Performance / Performance Matrix
The number of RSUs subject to the award, if any, that become eligible to vest (the Achieved RSUs) on the Performance Assessment Date will be determined by the Compensation Committee in its sole discretion on the Performance Assessment Date based upon the Companys Relative TSR Performance as described herein. Any portion of the RSUs subject to the award that could have vested on the Performance Assessment Date had performance been achieved but that are not determined to have vested on such Performance Assessment Date will immediately and automatically terminate and be cancelled and you will never vest in and will have no further rights with respect to such RSUs. Please see Performance Targets below for a further description/example.
The Company TSR means the annualized percentage increase or decrease in (A) the average adjusted closing price per Share of the Companys Common Stock on the principal exchange on which such stock is traded during the thirty (30) trading day period ending on (and including) the Period End Date (the Company Ending Price) as compared to (B) the average adjusted closing price per Share of the Companys Common Stock on the principal exchange on which such stock is traded during the thirty (30) trading day period ending on (and including) the Commencement Date (the Company Beginning Price), which will be determined by applying the TSR Formula. For avoidance of doubt, to account for any significant capitalization events, the adjusted closing price per Share will be adjusted for any cash dividends paid, stock splits, or similar corporate transactions as determined by the Administrator. The Company TSR will be expressed as a percent of increase (i.e., a positive percent) or decrease (i.e., a negative percent) rounded to two decimal places (applying standard rounding principles).
Notwithstanding the foregoing, in the event of a Change in Control, the Company Ending Price will mean the per Share value of the Companys Common Stock payable to its stockholders in connection with the Change in Control.
The Benchmark Peer TSR for a given Benchmark Peer means the annualized percentage increase or decrease of (A) the average adjusted closing price per share of the common stock of such Benchmark Peer (as defined below) on the principal exchange on which such stock is traded during the thirty (30) trading day period ending on (and including) the Period End Date (the Benchmark Peer Ending Price) as compared to (B) the average adjusted closing price per share of the common stock of such Benchmark Peer on the principal exchange on which such stock is traded during the thirty (30) trading day period ending on (and including) the Commencement Date (the Benchmark Peer Beginning Price), which will be determined by applying the TSR Formula. For avoidance of doubt, to account for any significant capitalization events, the adjusted closing price per share includes adjustments for any cash dividends paid, stock splits, or similar corporate transactions as determined by the Plan Administrator. Each Benchmark Peer TSR will be expressed as a percent of increase (i.e., a positive percent) or decrease (i.e., a negative percent) rounded to two decimal places (applying standard rounding principles).
Please see Benchmark Peers below, for (i) a description of the Benchmark Peers as of the Commencement Date, and (ii) information relating to changes to the companies listed in the Benchmark Peers during the Performance Period.
The TSR Formula means: TSR = (EP / BP)1 / n 1, where:
EP = with respect to the Company, the Company Ending Price; with respect to a Benchmark Peer, that Benchmark Peers Benchmark Peer Ending Price.
BP = with respect to the Company, the Company Beginning Price; with respect to a Benchmark Peer, that Benchmark Peers Benchmark Peer Beginning Price.
n= Duration of the performance period, which is two (2), except if the Period End Date is not the Anniversary Date, in which case n will equal the number of days from the Commencement Date through the Period End Date divided by three hundred and sixty-five (365).
As of the Period End Date, the Company TSR and each Benchmark Peer TSR will be calculated and collectively listed in order of highest (highest positive percentage) to lowest (highest negative percentage) (the TSR Ranking Group). The Companys position in the TSR Ranking Group will then be assessed.
[PERFORMANCE-BASED] |
||||
Achieved RSU Calculations:
Subject to the paragraph immediately following this table, the actual number of RSUs that will be Achieved RSUs will be determined as follows:
Level* |
Companys Position in the TSR Ranking Group (the Company Relative TSR Performance) |
Percentage of Target Number of RSUs that Become Achieved RSUs** |
Number of Achieved RSUs** |
|||
1 |
75th percentile or above | 200% | [] | |||
2 |
50th percentile | 100% | [] | |||
3 |
25th percentile | 50% | [] | |||
4 |
Below 25th percentile | 0% | 0 |
* |
The number of Target Number of RSUs that will become Achieved RSUs will be interpolated on a linear basis between levels 1 and 2 and levels 2 and 3. The Percentage of Target Number of RSUs that become Achieved RSUs will be rounded to the nearest hundredth. |
** |
Any partial Shares of Common Stock will be rounded down to the nearest whole Share and any fractional Shares will be forfeited for no consideration. |
Notwithstanding the foregoing, if the Company TSR for the Performance Period is a negative percentage, then no more than 100% of the Target Number of RSUs will be Achieved RSUs.
In no event may more than 100% of the Maximum Number of RSUs be Achieved RSUs.
All determinations regarding the Company Beginning Price, the Company Ending Price, the Company TSR, Benchmark Peer Beginning Price, the Benchmark Peer Ending Price, the Benchmark Peer TSR of each Benchmark Peer, and the inclusion or exclusion of a company as a Benchmark Peer in accordance with the terms of this Agreement, will be made by the Administrator in its sole discretion and all such determinations will be final and binding on all parties.
Vesting
Subject to the terms of the Plan, any offer letter, severance agreement, bonus agreement, transition agreement or other agreement between you and the Company or any subsidiary or affiliate of the Company, the provisions of this paragraph apply: 100% of the Achieved RSUs will vest on the Performance Assessment Date, subject to your remaining a Service Provider through the Period End Date. In the event you cease to be a Service Provider for any or no reason before the Period End Date, all of your unvested RSUs and your right to acquire any Shares thereunder will immediately terminate and be forfeited for no consideration and you will have no further rights with respect to such RSUs. In the event you cease to be a Service Provider for any or no reason on or after the Period End Date, but before the Performance Assessment Date, the RSUs that may vest on the Performance Assessment Date pursuant to this Agreement will remain outstanding and available for vesting on the Performance Assessment Date (and will immediately terminate for no consideration if not vested on such date).
Notwithstanding anything in Section 12 of the Plan to the contrary, the vesting of RSUs granted under this award will not be suspended during any unpaid leave of absence.
Any Shares that are determined on the Performance Assessment Date not to constitute Achieved RSUs will immediately terminate for no consideration.
Benchmark Peers
Benchmark Peer and together Benchmark Peers means those Peer Companies listed in the Companys Compensation Discussion and Analysis section in the proxy statement most recently filed prior to the Commencement Date.
[PERFORMANCE-BASED] |
||||
The following will govern changes to the Benchmark Peers during the applicable Performance Period:
1. |
If a company that is a Benchmark Peer is acquired or merges with another company, and the acquiring or merged company (the successor company) is not a Benchmark Peer, then the acquired company will be removed entirely from the list of Benchmark Peers; however, if the successor company is a Benchmark Peer, the successor company will remain as a Benchmark Peer with the old company being removed entirely from the list of Benchmark Peers. |
2. |
If a Benchmark Peer stops trading publicly due to being delisted or goes bankrupt, the company will remain in the Index with a TSR of -100%. |
3. |
If a Benchmark Peer spins off a subsidiary, the spin-off company will not be included in the list of Benchmark Peers, but the continuing (parent) company shall remain in the Benchmark Peers with the Benchmark Peer TSR adjusted for the spin-off and any stock dividend in the spin-off. |
You acknowledge and agree that by accepting this Notice of Grant, it will act as your electronic signature to this Agreement and indicate your agreement and understanding that this award of RSUs is subject to all of the terms and conditions contained in the Plan and this Agreement.
You should retain a copy of your Agreement. You may obtain a paper copy at any time for no charge by contacting Janice Smith or Jeff Calvello. If you would prefer not to electronically sign this Agreement, you may accept this Agreement by signing a paper copy of the Agreement and delivering it to Janice Smith or Jeff Calvello.
If you have any questions, please contact me at extension 2570 or stop by my office.
/s/ JEFFREY CALVELLO |
Jeffrey Calvello, Corporate Controller |
TERMS AND CONDITIONS OF RESTRICTED STOCK UNIT GRANT (PERFORMANCE-BASED)
1. Grant. The Company hereby grants to the individual (the Participant) named in the Notice of RSU Grant (the Notice of Grant) under the Intevac, Inc. 2020 Equity Incentive Plan (the Plan) an Award of Restricted Stock Units, subject to all of the terms and conditions in this Agreement and the Plan, which is incorporated herein by reference. Subject to Section 19 of the Plan, in the event of a conflict between the terms and conditions of the Plan and the terms and conditions of this Agreement, the terms and conditions of the Plan will prevail. Unless otherwise defined herein, the terms defined in the Plan will have the same defined meanings in this Restricted Stock Unit Agreement (the Agreement or Award Agreement), which includes the Notice of Grant and Terms and Conditions of Restricted Stock Unit Grant (Performance-Based).
2. Companys Obligation to Pay. Each Restricted Stock Unit represents the right to receive a Share on the date it vests. Unless and until the Restricted Stock Units will have vested in the manner set forth in Section 3 or 4, Participant will have no right to payment of any such Restricted Stock Units. Prior to actual payment of any vested Restricted Stock Units, such Restricted Stock Units will represent an unsecured obligation of the Company, payable (if at all) only from the general assets of the Company. Any Restricted Stock Units that vest in accordance with Sections 3 or 4 will be paid to Participant (or in the event of Participants death, to his or her properly designated beneficiary or estate) in whole Shares, subject to Participant satisfying any applicable tax withholding obligations as set forth in Section 7. Subject to the provisions of Section 4, such vested Restricted Stock Units will be paid in whole Shares as soon as practicable after the Performance Assessment Date or other date with respect to which such Restricted Stock Units vests, but in each such case within sixty-five (65) days following the Performance Period End Date or, if earlier, within sixty-five (65) days from when the applicable Restricted Stock Units are no longer subject to a substantial risk of forfeiture for purposes of Section 409A. In no event will Participant be permitted, directly or indirectly, to specify the taxable year of the payment of any Restricted Stock Units payable under this Agreement. No fractional Shares will be issued under this Agreement.
3. Vesting Schedule. Except as provided in Section 4, and subject to any acceleration provisions contained in the Plan or set forth in this Agreement, and subject to Section 5, the Restricted Stock Units awarded by this Agreement will vest in accordance with the vesting provisions set forth in the Notice of Grant. Except as provided in the Notice of Grant, Restricted Stock Units scheduled to vest on a certain date or upon the occurrence of a certain condition will not vest in Participant in accordance with any of the provisions of this Agreement, unless Participant will have been continuously a Service Provider from the Date of Award Grant until the date such vesting occurs. Except as provided in the Notice of Grant, in the event Participant ceases to be a Service Provider for any or no reason before Participant vests in the Restricted Stock Units, the Restricted Stock Units and Participants right to acquire any Shares hereunder will immediately terminate.
4. Administrator Discretion; Section 409A.
(a) Administrator Discretion; Acceleration.
-5-
(i) The Administrator, in its discretion, may accelerate the vesting of the balance, or some lesser portion of the balance, of the unvested Restricted Stock Units at any time, subject to the terms of the Plan. If so accelerated, such Restricted Stock Units will be considered as having vested as of the date specified by the Administrator. The payment of Shares vesting pursuant to this Section 4 shall in all cases be paid at a time or in a manner that is exempt from or complies with Section 409A.
(ii) Notwithstanding anything in the Plan or this Agreement to the contrary, if the vesting of the balance, or some lesser portion of the balance, of the Restricted Stock Units is accelerated in connection with Participants termination as a Service Provider (provided that such termination is a separation from service within the meaning of Section 409A, as determined by the Company), other than due to death, and if (x) Participant is a specified employee within the meaning of Section 409A at the time of such separation from service and (y) the payment of such accelerated Restricted Stock Units will result in the imposition of additional tax under Section 409A if paid to Participant on or within the six (6) month period following Participants separation from service, then the payment of such accelerated Restricted Stock Units will not be made until the date six (6) months and one (1) day following the date of Participants separation from service, unless the Participant dies following his or her termination as a Service Provider, in which case, the Restricted Stock Units will be paid in Shares to the Participants estate as soon as practicable following his or her death. It is the intent of this Agreement that it and all payments and benefits hereunder be exempt from or comply with the requirements of Section 409A so that none of the Restricted Stock Units provided under this Agreement or Shares issuable thereunder will be subject to the additional tax imposed under Section 409A, and any ambiguities herein will be interpreted to be so exempt or so comply. Each payment payable under this Agreement is intended to constitute a separate payment for purposes of Treasury Regulation Section 1.409A-2(b)(2). For purposes of this Agreement, Section 409A means Section 409A of the Code, and any final Treasury Regulations and Internal Revenue Service guidance thereunder, as each may be amended from time to time.
(b) Section 409A. It is the intent of this Award Agreement that it and all issuances and benefits to U.S. taxpayers hereunder be exempt or excepted from the requirements of Section 409A pursuant to the short-term deferral exception under Section 409A, or otherwise be exempted or excepted from, or comply with, Section 409A, so that none of this Award Agreement, the Restricted Stock Units provided under this Award Agreement, or Shares issuable thereunder will be subject to the additional tax imposed under Section 409A, and any ambiguities or ambiguous terms herein will be interpreted to be so exempt or excepted, or to so comply. Each issuance upon settlement of the Award under this Award Agreement is intended to constitute a separate payment for purposes of Treasury Regulation Section 1.409A-2(b)(2). In no event will the Company or any Service Recipient (as defined below) have any obligation or liability to reimburse, indemnify, or hold harmless Participant or any other person for any taxes, interest or penalties that may be imposed on Participant (or any other person), or other costs incurred by Participant (or any other person) as a result of Section 409A.
5. Forfeiture upon Termination of Status as a Service Provider. Except as provided in the Notice of Grant, the balance of the Restricted Stock Units that have not vested as of the time of Participants termination as a Service Provider for any or no reason and Participants right to acquire any Shares hereunder will immediately terminate.
-6-
6. Death of Participant. Any distribution or delivery to be made to Participant under this Agreement will, if Participant is then deceased, be made to Participants designated beneficiary, or if no beneficiary survives Participant, the administrator or executor of Participants estate. Any such transferee must furnish the Company with (a) written notice of his or her status as transferee, and (b) evidence satisfactory to the Company to establish the validity of the transfer and compliance with any laws or regulations pertaining to said transfer.
7. Withholding of Taxes. Participant acknowledges that, regardless of any action taken by the Company or, if different, Participants employer (the Employer) or any Parent or Subsidiary to which Participant is providing services (together, the Service Recipients), the ultimate liability for any tax and/or social insurance liability obligations and requirements in connection with the Restricted Stock Units, including, without limitation, (i) all federal, state, and local taxes (including Participants Federal Insurance Contributions Act (FICA) obligations) that are required to be withheld by any Service Recipient or other payment of tax-related items related to Participants participation in the Plan and legally applicable to Participant; (ii) Participants and, to the extent required by any Service Recipient, the Service Recipients fringe benefit tax liability, if any, associated with the grant, vesting, or settlement of the Restricted Stock Units or sale of Shares; and (iii) any other Service Recipient taxes the responsibility for which Participant has, or has agreed to bear, with respect to the Restricted Stock Units (or settlement thereof or issuance of Shares thereunder) (collectively, the Tax Obligations), is and remains Participants sole responsibility and may exceed the amount actually withheld by the applicable Service Recipient(s). Participant further acknowledges that no Service Recipient (A) makes any representations or undertakings regarding the treatment of any Tax Obligations in connection with any aspect of the Restricted Stock Units, including, but not limited to, the grant, vesting or settlement of the Restricted Stock Units, the subsequent sale of Shares acquired pursuant to such settlement and the receipt of any dividends or other distributions, and (B) makes any commitment to and is under any obligation to structure the terms of the grant or any aspect of the Restricted Stock Units to reduce or eliminate Participants liability for Tax Obligations or achieve any particular tax result. Further, if Participant is subject to Tax Obligations in more than one jurisdiction between the Date of Award Grant and the date of any relevant taxable or tax withholding event, as applicable, Participant acknowledges that the applicable Service Recipient(s) (or former employer, as applicable) may be required to withhold or account for Tax Obligations in more than one jurisdiction. If Participant fails to make satisfactory arrangements for the payment of any required Tax Obligations hereunder at the time of the applicable taxable event, Participant acknowledges and agrees that the Company may refuse to issue or deliver the Shares and may deem such Shares forfeited to the Company for no consideration.
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Notwithstanding any contrary provision of this Agreement, no certificate representing the Shares will be issued to Participant, unless and until satisfactory arrangements (as determined by the Administrator) will have been made by Participant with respect to the payment of the Tax Obligations. Prior to vesting and/or settlement of the Restricted Stock Units, Participant will pay or make adequate arrangements satisfactory to the Service Recipient to satisfy all obligations of the Service Recipient for the Tax Obligations. In this regard, Participant authorizes the Service Recipient to withhold all applicable Tax Obligations legally payable by Participant from his or her wages or other cash compensation paid to Participant by the Service Recipient or from proceeds of the sale of Shares. Alternatively, or in addition, if permissible under applicable local law, the Company may, in its sole discretion and pursuant to such procedures as it may specify from time to time, may permit or require Participant to satisfy such Tax Obligations, in whole or in part (without limitation) by (a) paying cash (or cash equivalent), (b) electing to have the Company withhold otherwise deliverable cash or Shares having a fair market value equal to the minimum statutory amount required to be withheld or such greater amount as the Administrator may determine if such amount would not have adverse accounting consequences, as the Administrator determines in its sole discretion, (c) delivering to the Company already-owned Shares having a fair market value equal to the minimum statutory amount required to be withheld or such greater amount as the Administrator may determine if such amount would not have adverse accounting consequences, as the Administrator determines in its sole discretion, or (d) selling a sufficient number of such Shares otherwise deliverable to Participant through such means as the Company may determine in its sole discretion (whether through a broker or otherwise) equal to the amount required to be withheld for Tax Obligations. The Company, in its sole discretion, will have the right (but not the obligation) to satisfy any Tax Obligations by reducing the number of Shares otherwise deliverable to Participant and, until determined otherwise by the Company, this will be the method by which such obligations for Tax Obligations are satisfied. If Participant fails to make satisfactory arrangements for the payment of any required Tax Obligations hereunder at the time any applicable Restricted Stock Units otherwise are scheduled to vest pursuant to Sections 3 or 4 or Tax Obligations related to the Restricted Stock Units otherwise are due, Participant will permanently forfeit such Restricted Stock Units and any right to receive Shares thereunder and the Restricted Stock Units will be returned to the Company at no cost to the Company.
Participant has reviewed with his or her own tax advisers the U.S. federal, state, local and non-U.S. tax consequences of this investment and the transactions contemplated by this Award Agreement. With respect to such matters, Participant relies solely on such advisers and not on any statements or representations of the Company or any of its agents, written or oral. Participant understands that Participant (and not the Company) shall be responsible for Participants own tax liability that may arise as a result of this investment or the transactions contemplated by this Award Agreement.
8. Acknowledgements. In accepting this Award of Restricted Stock Units, Participant acknowledges, understands and agrees that:
(a) Participant acknowledges receipt of a copy of the Plan (including any applicable appendixes or sub-plans thereunder) and represents that he or she is familiar with the terms and provisions thereof, and hereby accepts this Award of Restricted Stock Units subject to all of the terms and provisions thereof. Participant has reviewed the Plan (including any applicable appendixes or sub-plans thereunder) and this Agreement in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Agreement and fully understands all provisions of the Award. Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions arising under the Plan or this Agreement. Participant further agrees to notify the Company upon any change in the residence address indicated in the Notice of Grant;
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(b) the grant of the Restricted Stock Units is voluntary and occasional and does not create any contractual or other right to receive future grants of Restricted Stock Units, or benefits in lieu of Restricted Stock Units, even if Restricted Stock Units have been granted in the past;
(c) all decisions with respect to future Restricted Stock Units or other grants, if any, will be at the sole discretion of the Administrator;
(d) Participant is voluntarily participating in the Plan;
(e) the Restricted Stock Units and the Shares subject to the Restricted Stock Units are not intended to replace any pension rights or compensation;
(f) the Restricted Stock Units and the Shares subject to the Restricted Stock Units, and the income and value of same, are not part of normal or expected compensation for purposes of calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments;
(g) the future value of the Shares underlying the Restricted Stock Units is unknown, indeterminable and cannot be predicted;
(h) for purposes of the Restricted Stock Units, Participants status as a Service Provider will be considered terminated as of the date Participant is no longer actively providing services to the Company or any Parent or Subsidiary (regardless of the reason for such termination and whether or not later found to be invalid or in breach of employment laws in the jurisdiction where Participant is a Service Provider or the terms of Participants employment or service agreement, if any), and unless otherwise expressly provided in this Award Agreement (including by reference in the Notice of Grant to other arrangements or contracts) or determined by the Administrator, Participants right to vest in the Restricted Stock Units under the Plan, if any, will terminate as of such date and will not be extended by any notice period (e.g., Participants period of service would not include any contractual notice period or any period of garden leave or similar period mandated under employment laws in the jurisdiction where Participant is a Service Provider or the terms of Participants employment or service agreement, if any, unless Participant is providing bona fide services during such time); the Administrator shall have the exclusive discretion to determine when Participant is no longer actively providing services for purposes of the Restricted Stock Units grant (including whether Participant may still be considered to be providing services while on a leave of absence and consistent with local law);
(i) unless otherwise provided in the Plan or by the Administrator in its discretion, the Restricted Stock Units and the benefits evidenced by this Award Agreement do not create any entitlement to have the Restricted Stock Units or any such benefits transferred to, or assumed by, another company nor be exchanged, cashed out or substituted for, in connection with any corporate transaction affecting the Shares; and
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(j) the following provisions apply only if Participant is providing services outside the United States:
(i) the Restricted Stock Units and the Shares subject to the Restricted Stock Units are not part of normal or expected compensation or salary for any purpose;
(ii) Participant acknowledges and agrees that no Service Recipient shall be liable for any foreign exchange rate fluctuation between Participants local currency and the United States Dollar that may affect the value of the Restricted Stock Units or of any amounts due to Participant pursuant to the settlement of the Restricted Stock Units or the subsequent sale of any Shares acquired upon settlement; and
(iii) no claim or entitlement to compensation or damages shall arise from forfeiture of the Restricted Stock Units resulting from the termination of Participants status as a Service Provider (for any reason whatsoever whether or not later found to be invalid or in breach of employment laws in the jurisdiction where Participant is a Service Provider or the terms of Participants employment or service agreement, if any), and in consideration of the grant of the Restricted Stock Units to which Participant is otherwise not entitled, Participant irrevocably agrees never to institute any claim against any Service Recipient, waives his or her ability, if any, to bring any such claim, and releases each Service Recipient from any such claim; if, notwithstanding the foregoing, any such claim is allowed by a court of competent jurisdiction, then, by participating in the Plan, Participant shall be deemed irrevocably to have agreed not to pursue such claim and agrees to execute any and all documents necessary to request dismissal or withdrawal of such claim
9. Data Privacy. Participant hereby explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of Participants personal data as described in this Award Agreement and any other Restricted Stock Unit grant materials by and among, as applicable, the Service Recipients for the exclusive purpose of implementing, administering and managing Participants participation in the Plan.
Participant understands that the Company and the Service Recipient may hold certain personal information about Participant, including, but not limited to, Participants name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any Shares or directorships held in the Company, details of all Restricted Stock Units or any other entitlement to Shares awarded, canceled, exercised, vested, unvested or outstanding in Participants favor (Data), for the exclusive purpose of implementing, administering and managing the Plan.
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Participant understands that Data may be transferred to a stock plan service provider, as may be selected by the Company in the future, assisting the Company with the implementation, administration and management of the Plan. Participant understands that the recipients of the Data may be located in the United States or elsewhere, and that the recipients country of operation (e.g., the United States) may have different data privacy laws and protections than Participants country. Participant understands that if he or she resides outside the United States, he or she may request a list with the names and addresses of any potential recipients of the Data by contacting his or her local human resources representative. Participant authorizes the Company, the Service Recipients, any stock plan service provider selected by the Company and any other possible recipients which may assist the Company (presently or in the future) with implementing, administering and managing the Plan to receive, possess, use, retain and transfer the Data, in electronic or other form, for the sole purpose of implementing, administering and managing his or her participation in the Plan. Participant understands that Data will be held only as long as is necessary to implement, administer and manage Participants participation in the Plan. Participant understands if he or she resides outside the United States, he or she may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing his or her local human resources representative. Further, Participant understands that he or she is providing the consents herein on a purely voluntary basis. If Participant does not consent, or if Participant later seeks to revoke his or her consent, his or her status as a Service Provider and career with the Service Recipient will not be adversely affected. The only adverse consequence of refusing or withdrawing Participants consent is that the Company would not be able to grant Participant Restricted Stock Units or other equity awards or administer or maintain such awards. Therefore, Participant understands that refusing or withdrawing his or her consent may affect Participants ability to participate in the Plan. For more information on the consequences of Participants refusal to consent or withdrawal of consent, Participant understands that he or she may contact his or her local human resources representative.
10. English Language. Participant has received the terms and conditions of this Agreement and any other related communications, and Participant consents to having received these documents in English. If Participant has received this Agreement or any other document related to the Plan translated into a language other than English and if the translated version is different than the English version, the English version will control.
11. Rights as Stockholder. Neither Participant nor any person claiming under or through Participant will have any of the rights or privileges of a stockholder of the Company in respect of any Shares deliverable hereunder unless and until certificates representing such Shares will have been issued, recorded on the records of the Company or its transfer agents or registrars, and delivered to Participant (including through electronic delivery to a brokerage account). After such issuance, recordation and delivery, Participant will have all the rights of a stockholder of the Company with respect to voting such Shares and receipt of dividends and distributions on such Shares.
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12. No Guarantee of Continued Service. PARTICIPANT ACKNOWLEDGES AND AGREES THAT THE VESTING OF THE RESTRICTED STOCK UNITS PURSUANT TO THE VESTING SCHEDULE HEREOF IS EARNED ONLY THROUGH ACHIEVEMENT OF THE PERFORMANCE METRICS SET FORTH IN THE NOTICE OF GRANT COUPLED WITH CONTINUATION AS A SERVICE PROVIDER AND, WHICH CONTINUATION, UNLESS PROVIDED OTHERWISE UNDER APPLICABLE LAW, IS AT THE WILL OF THE APPLICABLE SERVICE RECIPIENT AND NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THIS AWARD OF RESTRICTED STOCK UNITS OR ACQUIRING SHARES HEREUNDER. PARTICIPANT FURTHER ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND WILL NOT INTERFERE IN ANY WAY WITH PARTICIPANTS RIGHT OR THE RIGHT OF ANY SERVICE RECIPIENT TO TERMINATE PARTICIPANTS RELATIONSHIP AS A SERVICE PROVIDER, SUBJECT TO APPLICABLE LAW, WHICH TERMINATION, UNLESS PROVIDED OTHERWISE UNDER APPLICABLE LAW, MAY BE AT ANY TIME, WITH OR WITHOUT CAUSE.
13. Address for Notices. Any notice to be given to the Company under the terms of this Agreement will be addressed to the Company, in care of its Secretary at Intevac, Inc., 3560 Bassett Street, Santa Clara CA 95054, or at such other address as the Company may hereafter designate in writing.
14. Grant is Not Transferable. Except to the limited extent provided in Section 6, this grant and the rights and privileges conferred hereby will not be transferred, assigned, pledged or hypothecated in any way (whether by operation of law or otherwise) and will not be subject to sale under execution, attachment or similar process. Upon any attempt to transfer, assign, pledge, hypothecate or otherwise dispose of this grant, or any right or privilege conferred hereby, or upon any attempted sale under any execution, attachment or similar process, this grant and the rights and privileges conferred hereby immediately will become null and void.
15. Successors and Assigns. The Company may assign any of its rights under this Agreement to single or multiple assignees, and this Agreement shall inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer herein set forth, this Agreement shall be binding upon Participant and his or her heirs, executors, administrators, successors and assigns. The rights and obligations of Participant under this Agreement may be assigned only with the prior written consent of the Company.
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16. Additional Conditions to Issuance of Stock. If at any time the Company determines, in its discretion, that the listing, registration, qualification or rule compliance of the Shares upon any securities exchange or under any state, federal or non-U.S. law, the tax code and related regulations or under the rulings or regulations of the United States Securities and Exchange Commission or any other governmental regulatory body or the clearance, consent or approval of the United States Securities and Exchange Commission or any other governmental regulatory authority is necessary or desirable as a condition to the issuance of Shares to Participant (or his or her estate or beneficiaries) hereunder, such issuance will not occur unless and until such listing, registration, qualification, rule compliance, clearance, consent or approval will have been completed, effected or obtained free of any conditions not acceptable to the Company. If any such listing, registration, qualification, rule compliance, clearance, consent or approval has not been completed by the applicable deadline to remain exempt from Section 409A under the short-term deferral exemption with respect to a Restricted Stock Unit in a manner that would allow it to be settled by such deadline, such Restricted Stock Unit will be forfeited as of immediately following such deadline for no consideration and at no cost to the Company. Subject to the prior sentence, where the Company determines that the delivery of the payment of any Shares will violate federal securities laws or other applicable laws, the Company will defer delivery until the earliest date at which the Company reasonably anticipates that the delivery of Shares will no longer cause such violation. The Company will make all reasonable efforts to meet the requirements of any such state, federal or foreign law or securities exchange and to obtain any such consent or approval of any such governmental authority or securities exchange. Subject to the terms of this Award Agreement and the Plan, the Company shall not be required to issue any certificate or certificates for Shares hereunder prior to the lapse of such reasonable period of time following the date of vesting of a Restricted Stock Unit as the Administrator may establish from time to time for reasons of administrative convenience and any such certificate may be in book entry form.
17. Plan Governs. This Agreement is subject to all terms and provisions of the Plan. In the event of a conflict between one or more provisions of this Agreement and one or more provisions of the Plan, the provisions of the Plan will govern. Capitalized terms used and not defined in this Agreement will have the meaning set forth in the Plan.
18. Administrator Authority. The Administrator will have the power to interpret the Plan and this Agreement and to adopt such rules for the administration, interpretation and application of the Plan as are consistent therewith and to interpret or revoke any such rules (including, but not limited to, the determination of whether or not any Restricted Stock Units have vested). All actions taken and all interpretations and determinations made by the Administrator in good faith will be final and binding upon Participant, the Company and all other interested persons. No member of the Administrator will be personally liable for any action, determination or interpretation made in good faith with respect to the Plan or this Agreement.
19. Electronic Delivery and Acceptance. The Company may, in its sole discretion, decide to deliver any documents related to Restricted Stock Units awarded under the Plan or future Restricted Stock Units that may be awarded under the Plan by electronic means or require Participant to participate in the Plan by electronic means. Participant hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through any on-line or electronic system established and maintained by the Company or a third party designated by the Company.
20. Captions. Captions provided herein are for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.
21. Agreement Severable. In the event that any provision in this Agreement will be held invalid or unenforceable, such provision will be severable from, and such invalidity or unenforceability will not be construed to have any effect on, the remaining provisions of this Agreement.
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22. Modifications to the Agreement. This Agreement constitutes the entire understanding of the parties on the subjects covered. Participant expressly warrants that he or she is not accepting this Agreement in reliance on any promises, representations, or inducements other than those contained herein. Modifications to this Agreement or the Plan can be made only in an express written contract executed by a duly authorized officer of the Company. Notwithstanding anything to the contrary in the Plan or this Agreement, the Company reserves the right to revise this Agreement as it deems necessary or advisable, in its sole discretion and without the consent of Participant, to comply with Section 409A or to otherwise avoid imposition of any additional tax or income recognition under Section 409A in connection to this Award of Restricted Stock Units.
23. Amendment, Suspension or Termination of the Plan. By accepting this Award, Participant expressly warrants that he or she has received an Award of Restricted Stock Units under the Plan, and has received, read and understood a description of the Plan. Participant understands that the Plan is discretionary in nature and may be amended, suspended or terminated by the Company at any time.
24. Governing Law. This Agreement will be governed by the laws of the State of California, without giving effect to the conflict of law principles thereof. For purposes of litigating any dispute that arises under this Award of Restricted Stock Units or this Agreement, the parties hereby submit to and consent to the jurisdiction of the State of California, and agree that such litigation will be conducted in the courts of Santa Clara County, California, or the federal courts for the United States for the Northern District of California, and no other courts, where this Award of Restricted Stock Units is made and/or to be performed.
25. No Waiver. Either partys failure to enforce any provision or provisions of this Agreement shall not in any way be construed as a waiver of any such provision or provisions, nor prevent that party from thereafter enforcing each and every other provision of this Agreement. The rights granted both parties herein are cumulative and shall not constitute a waiver of either partys right to assert all other legal remedies available to it under the circumstances.
26. Tax Consequences. Participant has reviewed with his or her own tax advisors the U.S. federal, state, local and non-U.S. tax consequences of this investment and the transactions contemplated by this Agreement. With respect to such matters, Participant relies solely on such advisors and not on any statements or representations of the Company or any of its agents, written or oral. Participant understands that Participant (and not the Company) shall be responsible for Participants own tax liability that may arise as a result of this investment or the transactions contemplated by this Agreement.
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Exhibit 31.1
I, Wendell Blonigan, certify that:
1. |
I have reviewed this Quarterly Report on Form 10-Q of Intevac, 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 registrants other certifying officer(s) 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 registrants 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 registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. |
The registrants other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants 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 registrants 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 registrants internal control over financial reporting.
Date: August 3, 2021
/s/ WENDELL BLONIGAN |
Wendell Blonigan |
President and Chief Executive Officer |
Exhibit 31.2
I, James Moniz, certify that:
1. |
I have reviewed this Quarterly Report on Form 10-Q of Intevac, 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 registrants other certifying officer(s) 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 registrants 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 registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. |
The registrants other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants 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 registrants 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 registrants internal control over financial reporting.
Date: August 3, 2021
/s/ JAMES MONIZ |
James Moniz |
Executive Vice President, Finance and Administration, |
Chief Financial Officer, Secretary and Treasurer |
Exhibit 32.1
CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER
PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
I, Wendell Blonigan, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report of Intevac, Inc. on Form 10-Q for the quarterly period ended July 3, 2021 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Form 10-Q fairly presents in all material respects the financial condition and results of operations of Intevac, Inc.
Date: August 3, 2021
/s/ WENDELL BLONIGAN |
Wendell Blonigan |
President and Chief Executive Officer |
I, James Moniz, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report of Intevac, Inc. on Form 10-Q for the quarterly period ended July 3, 2021 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Form 10-Q fairly presents in all material respects the financial condition and results of operations of Intevac, Inc.
Date: August 3, 2021
/s/ JAMES MONIZ |
James Moniz |
Executive Vice President, Finance and Administration, |
Chief Financial Officer, Secretary and Treasurer |
A signed original of this written statement required by Section 906 has been provided to Intevac, Inc. and will be retained by Intevac, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.
This certification accompanies the report to which it relates, is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of Intevac, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of the Report), irrespective of any general incorporation language contained in such filing.