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Note 17 - Restatement of Previously Issued Condensed Consolidated Financial Statements

12 Months Ended

Dec. 31, 2025

17. RESTATEMENT OF PREVIOUSLY ISSUED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Restatement of Interim Financial Information (Unaudited)

In connection with the preparation of the Company's Consolidated Financial Statements as of and for the fiscal year ended December 31, 2025, the Company discovered that in the prior year it had not appropriately accounted for deferred income taxes associated with a one-time tax incentive granted by a certain foreign jurisdiction. The adjustment results in a decrease to the net income tax expense and the deferred income taxes, and the amounts were also material to the interim financial information. The Company has restated its unaudited Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Operations, Condensed Consolidated Statement of Comprehensive Income, and Consolidated Statement of Stockholders’ Equity for the quarterly periods ended March 31, 2025, June 30, 2025, and September 30, 2025.

The impacts of the restatement are summarized below (in thousands, except per-share amounts):

RESTATED CONDENSED CONSOLIDATED BALANCE SHEET AS OF MARCH 31, 2025 (UNAUDITED) (in thousands, except par value):

	March 31, 2025
	As Previously Reported			Impact of Restatement			As Restated
ASSETS
Current assets:
Cash and cash equivalents	$	637,354		$	-		$	637,354
Short-term investments		389,310			-			389,310
Accounts receivable, net		214,866			-			214,866
Inventories		454,793			-			454,793
Other current assets		92,063			-			92,063
Total current assets		1,788,386			-			1,788,386
Property and equipment, net		527,348			-			527,348
Acquisition-related intangible assets, net		9,651			-			9,651
Goodwill		25,944			-			25,944
Deferred tax assets, net		1,318,457			(100,617	)		1,217,840
Other long-term assets		135,974			-			135,974
Total assets	$	3,805,760		$	(100,617	)	$	3,705,143

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	127,310		$	-		$	127,310
Accrued compensation and related benefits		74,785			-			74,785
Other accrued liabilities		161,306			-			161,306
Total current liabilities		363,401			-			363,401
Income tax liabilities		69,535			-			69,535
Deferred tax liabilities		-			92,764			92,764
Other long-term liabilities		105,814			-			105,814
Total liabilities		538,750			92,764			631,514
Commitments and contingencies
Stockholders’ equity:
Common stock and additional paid-in capital: $0.001 par value; shares authorized: 150,000; shares issued and outstanding: 47,877 and 47,823, respectively		764,959			-			764,959
Retained earnings		2,545,375			(193,381	)		2,351,994
Accumulated other comprehensive loss		(43,324	)		-			(43,324	)
Total stockholders’ equity		3,267,010			(193,381	)		3,073,629
Total liabilities and stockholders’ equity	$	3,805,760		$	(100,617	)	$	3,705,143

RESTATED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS FOR THREE MONTHS ENDED MARCH 31, 2025 (UNAUDITED) (in thousands, except per-share amounts):

	Three Months Ended March 31, 2025
	As Previously Reported		Impact of Restatement			As Restated
Revenue	$	637,554	$	-		$	637,554
Cost of revenue		284,324		-			284,324
Gross profit		353,230		-			353,230
Operating expenses:
Research and development		92,227		-			92,227
Selling, general and administrative		92,244		-			92,244
Total operating expenses		184,471		-			184,471
Operating income		168,759		-			168,759
Other income, net		5,131		-			5,131
Income before income taxes		173,890		-			173,890
Income tax expense		40,099		(1,261	)		38,838
Net income	$	133,791	$	1,261		$	135,052

Net income per share:
Basic	$	2.80	$	0.02		$	2.82
Diluted	$	2.79	$	0.02		$	2.81
Weighted-average shares outstanding:
Basic		47,851		-			47,851
Diluted		48,006		-			48,006

RESTATED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THREE MONTHS ENDED MARCH 31, 2025 (UNAUDITED) (in thousands):

	Three Months Ended March 31, 2025
	As Previously Reported		Impact of Restatement		As Restated
Net income	$	133,791	$	1,261	$	135,052
Other comprehensive income, net of tax:
Foreign currency translation adjustments		5,139		-		5,139
Change in unrealized gains and losses on available-for-sale securities, net of tax of $0 and $(248), respectively		48		-		48
Other comprehensive income, net of tax		5,187		-		5,187
Comprehensive income	$	138,978	$	1,261	$	140,239

RESTATED CONDENSED CONSOLIDATED BALANCE SHEET AS OF JUNE 30, 2025 (UNAUDITED) (in thousands, except par value):

	June 30, 2025
	As Previously Reported			Impact of Restatement			As Restated
ASSETS
Current assets:
Cash and cash equivalents	$	787,382		$	-		$	787,382
Short-term investments		358,695			-			358,695
Accounts receivable, net		194,821			-			194,821
Inventories		490,642			-			490,642
Other current assets		87,217			-			87,217
Total current assets		1,918,757			-			1,918,757
Property and equipment, net		563,885			-			563,885
Acquisition-related intangible assets, net		9,364			-			9,364
Goodwill		25,944			-			25,944
Deferred tax assets, net		1,309,981			(99,948	)		1,210,033
Other long-term assets		144,279			-			144,279
Total assets	$	3,972,210		$	(99,948	)	$	3,872,262

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	129,919		$	-		$	129,919
Accrued compensation and related benefits		81,296			-			81,296
Other accrued liabilities		172,293			-			172,293
Total current liabilities		383,508			-			383,508
Income tax liabilities		73,185			-			73,185
Deferred tax liabilities		-			92,150			92,150
Other long-term liabilities		113,449			-			113,449
Total liabilities		570,142			92,150			662,292
Commitments and contingencies
Stockholders’ equity:
Common stock and additional paid-in capital: $0.001 par value; shares authorized: 150,000; shares issued and outstanding: 47,892 and 47,823, respectively		822,582			-			822,582
Retained earnings		2,603,177			(192,098	)		2,411,079
Accumulated other comprehensive loss		(23,691	)		-			(23,691	)
Total stockholders’ equity		3,402,068			(192,098	)		3,209,970
Total liabilities and stockholders’ equity	$	3,972,210		$	(99,948	)	$	3,872,262

RESTATED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS FOR THREE AND SIX MONTHS ENDED JUNE 30, 2025 (UNAUDITED) (in thousands, except per-share amounts):

	Three Months Ended June 30, 2025							Six Months Ended June 30, 2025
	As Previously Reported		Impact of Restatement			As Restated		As Previously Reported		Impact of Restatement			As Restated
Revenue	$	664,574	$	-		$	664,574	$	1,302,128	$	-		$	1,302,128
Cost of revenue		298,558		-			298,558		582,882		-			582,882
Gross profit		366,016		-			366,016		719,246		-			719,246
Operating expenses:
Research and development		96,266		-			96,266		188,493		-			188,493
Selling, general and administrative		104,992		-			104,992		197,236		-			197,236
Total operating expenses		201,258		-			201,258		385,729		-			385,729
Operating income		164,758		-			164,758		333,517		-			333,517
Other income, net		12,220		-			12,220		17,351		-			17,351
Income before income taxes		176,978		-			176,978		350,868		-			350,868
Income tax expense		43,252		(1,283	)		41,969		83,351		(2,544	)		80,807
Net income	$	133,726	$	1,283		$	135,009	$	267,517	$	2,544		$	270,061

Net income per share:
Basic	$	2.79	$	0.03		$	2.82	$	5.59	$	0.05		$	5.64
Diluted	$	2.78	$	0.03		$	2.81	$	5.57	$	0.05		$	5.62
Weighted-average shares outstanding:
Basic		47,887		-			47,887		47,869		-			47,869
Diluted		48,019		-			48,019		48,012		-			48,012

RESTATED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THREE AND SIX MONTHS ENDED JUNE 30, 2025 (UNAUDITED) (in thousands):

	Three Months Ended June 30, 2025								Six Months Ended June 30, 2025
	As Previously Reported			Impact of Restatement		As Restated			As Previously Reported		Impact of Restatement		As Restated
Net income	$	133,726		$	1,283	$	135,009		$	267,517	$	2,544	$	270,061
Other comprehensive income, net of tax:
Foreign currency translation adjustments		19,634			-		19,634			24,773		-		24,773
Change in unrealized gains and losses on available-for-sale securities, net of tax of $0, $50, $0 and $(198), respectively		(1	)		-		(1	)		47		-		47
Other comprehensive income, net of tax		19,633			-		19,633			24,820		-		24,820
Comprehensive income	$	153,359		$	1,283	$	154,642		$	292,337	$	2,544	$	294,881

RESTATED CONDENSED CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER 30, 2025 (UNAUDITED) (in thousands, except par value):

	September 30, 2025
	As Previously Reported			Impact of Restatement			As Restated
ASSETS
Current assets:
Cash and cash equivalents	$	1,081,251		$	-		$	1,081,251
Short-term investments		188,233			-			188,233
Accounts receivable, net		241,560			-			241,560
Inventories		505,680			-			505,680
Other current assets		96,021			-			96,021
Total current assets		2,112,745			-			2,112,745
Property and equipment, net		597,311			-			597,311
Acquisition-related intangible assets, net		9,077			-			9,077
Goodwill		25,944			-			25,944
Deferred tax assets, net		1,300,260			(99,170	)		1,201,090
Other long-term assets		161,055			-			161,055
Total assets	$	4,206,392		$	(99,170	)	$	4,107,222

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	141,689		$	-		$	141,689
Accrued compensation and related benefits		99,602			-			99,602
Other accrued liabilities		201,513			-			201,513
Total current liabilities		442,804			-			442,804
Income tax liabilities		78,261			-			78,261
Deferred tax liabilities		-			91,436			91,436
Other long-term liabilities		117,380			-			117,380
Total liabilities		638,445			91,436			729,881
Commitments and contingencies
Stockholders’ equity:
Common stock and additional paid-in capital: $0.001 par value; shares authorized: 150,000; shares issued and outstanding: 47,905 and 47,823, respectively		885,123			-			885,123
Retained earnings		2,705,527			(190,606	)		2,514,921
Accumulated other comprehensive loss		(22,703	)		-			(22,703	)
Total stockholders’ equity		3,567,947			(190,606	)		3,377,341
Total liabilities and stockholders’ equity	$	4,206,392		$	(99,170	)	$	4,107,222

RESTATED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS FOR THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 (UNAUDITED) (in thousands, except per-share amounts):

	Three Months Ended September 30, 2025							Nine Months Ended September 30, 2025
	As Previously Reported		Impact of Restatement			As Restated		As Previously Reported		Impact of Restatement			As Restated
Revenue	$	737,176	$	-		$	737,176	$	2,039,304	$	-		$	2,039,304
Cost of revenue		330,948		-			330,948		913,830		-			913,830
Gross profit		406,228		-			406,228		1,125,474		-			1,125,474
Operating expenses:
Research and development		98,173		-			98,173		286,666		-			286,666
Selling, general and administrative		112,872		-			112,872		310,108		-			310,108
Total operating expenses		211,045		-			211,045		596,774		-			596,774
Operating income		195,183		-			195,183		528,700		-			528,700
Other income, net		10,392		-			10,392		27,743		-			27,743
Income before income taxes		205,575		-			205,575		556,443		-			556,443
Income tax expense		27,301		(1,492	)		25,809		110,652		(4,036	)		106,616
Net income	$	178,274	$	1,492		$	179,766	$	445,791	$	4,036		$	449,827

Net income per share:
Basic	$	3.72	$	0.03		$	3.75	$	9.31	$	0.09		$	9.40
Diluted	$	3.71	$	0.03		$	3.74	$	9.28	$	0.09		$	9.37
Weighted-average shares outstanding:
Basic		47,898		-			47,898		47,879		-			47,879
Diluted		48,042		-			48,042		48,022		-			48,022

RESTATED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 (UNAUDITED) (in thousands):

	Three Months Ended September 30, 2025						Nine Months Ended September 30, 2025
	As Previously Reported		Impact of Restatement		As Restated		As Previously Reported		Impact of Restatement		As Restated
Net income	$	178,274	$	1,492	$	179,766	$	445,791	$	4,036	$	449,827
Other comprehensive income, net of tax:
Foreign currency translation adjustments		919		-		919		25,692		-		25,692
Change in unrealized gains and losses on available-for-sale securities, net of tax of $17, $37, $17 and $(161), respectively		69		-		69		116		-		116
Other comprehensive income, net of tax		988		-		988		25,808		-		25,808
Comprehensive income	$	179,262	$	1,492	$	180,754	$	471,599	$	4,036	$	475,635

RESTATED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY (UNAUDITED) (in thousands, except per-share amounts):

										Accumulated
	Common Stock and									Other			Total
	Additional Paid-in Capital						Retained			Comprehensive			Stockholders’
	Shares			Amount			Earnings			Loss			Equity
Balance as of January 1, 2025 (As Restated)		47,823		$	706,817		$	2,292,819		$	(48,511	)	$	2,951,125
Net income (As Restated)		-			-			135,052			-			135,052
Other comprehensive income		-			-			-			5,187			5,187
Dividends and dividend equivalents declared ($1.56 per share)		-			-			(75,877	)		-			(75,877	)
Common stock issued		54			5,335			-			-			5,335
Stock-based compensation expense		-			52,807			-			-			52,807
Balance as of March 31, 2025 (As Restated)		47,877			764,959			2,351,994			(43,324	)		3,073,629
Net income (As Restated)		-			-			135,009			-			135,009
Other comprehensive income		-			-			-			19,633			19,633
Dividends and dividend equivalents declared ($1.56 per share)		-			-			(75,924	)		-			(75,924	)
Common stock issued		19			-			-			-			-
Repurchases of common stock		(4	)		(2,484	)		-			-			(2,484	)
Stock-based compensation expense		-			60,107			-			-			60,107
Balance as of June 30, 2025 (As Restated)		47,892			822,582			2,411,079			(23,691	)		3,209,970
Net income (As Restated)		-			-			179,766			-			179,766
Other comprehensive income		-			-			-			988			988
Dividends and dividend equivalents declared ($1.56 per share)		-			-			(75,924	)		-			(75,924	)
Common stock issued		15			3,885			-			-			3,885
Repurchases of common stock		(2	)		(2,017	)		-			-			(2,017	)
Stock-based compensation expense		-			60,673			-			-			60,673
Balance as of September 30, 2025 (As Restated)		47,905		$	885,123		$	2,514,921		$	(22,703	)	$	3,377,341