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 |
Not Applicable | ||||||||
( State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
x | Accelerated filer | o | ||||||||||||
Non‑accelerated filer | o | Small reporting company | ||||||||||||
Emerging Growth Company |
March 31, 2023 | December 30, 2022 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, net | |||||||||||
Inventories | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Property and equipment, net | |||||||||||
Operating lease right-of-use assets | |||||||||||
Other noncurrent assets | |||||||||||
Deferred tax assets, net | |||||||||||
Intangible assets, net | |||||||||||
Goodwill | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and Shareholders’ Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued liabilities | |||||||||||
Other current liabilities | |||||||||||
Current portion of long-term debt | |||||||||||
Current portion of lease liabilities | |||||||||||
Total current liabilities | |||||||||||
Long-term debt, less current portion, net | |||||||||||
Lease liabilities, less current portion | |||||||||||
Deferred tax liabilities, net | |||||||||||
Other non-current liabilities | |||||||||||
Total liabilities | |||||||||||
Shareholders’ equity: | |||||||||||
Preferred shares ($ | |||||||||||
Ordinary shares ($ | |||||||||||
Additional paid in capital | |||||||||||
Treasury shares at cost ( | ( | ( | |||||||||
Retained earnings | |||||||||||
Total shareholders’ equity | |||||||||||
Total liabilities and shareholders’ equity | $ | $ |
Three Months Ended | |||||||||||
March 31, 2023 | April 1, 2022 | ||||||||||
Net sales | $ | $ | |||||||||
Cost of sales | |||||||||||
Gross profit | |||||||||||
Operating expenses: | |||||||||||
Research and development | |||||||||||
Selling, general, and administrative | |||||||||||
Amortization of intangible assets | |||||||||||
Total operating expenses | |||||||||||
Operating income | |||||||||||
Interest expense, net | |||||||||||
Other expense, net | |||||||||||
Income (loss) before income taxes | ( | ||||||||||
Income tax expense (benefit) | ( | ||||||||||
Net income (loss) | $ | ( | $ | ||||||||
Net income (loss) per share | |||||||||||
Basic | $ | $ | |||||||||
Diluted | $ | $ | |||||||||
Shares used to compute Net income (loss) per share: | |||||||||||
Basic | |||||||||||
Diluted |
For the three months ending March 31, 2023 | Ordinary Shares | Additional Paid-In Capital | Treasury Shares | Retained Earnings | Total Shareholders' Equity | ||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||
Balance at December 30, 2022 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||
Ordinary shares issued from exercise of stock options | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Ordinary shares issued from vesting of restricted share units | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||
Ordinary shares issued from employee share purchase plan | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | $ | $ | $ | ( | $ | $ |
For the three months ending April 1, 2022 | Ordinary Shares | Additional Paid-In Capital | Treasury Shares | Retained Earnings | Total Shareholders' Equity | ||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||
Ordinary shares issued from exercise of stock options | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Ordinary shares issued from vesting of restricted share units | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Balance at April 1, 2022 | $ | $ | $ | ( | $ | $ |
Three Months Ended | |||||||||||
March 31, 2023 | April 1, 2022 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | ( | $ | ||||||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Share-based compensation | |||||||||||
Deferred income taxes | ( | ( | |||||||||
Amortization of debt issuance costs | |||||||||||
Changes in operating assets and liabilities, net of acquisitions: | |||||||||||
Accounts receivable, net | ( | ||||||||||
Inventories | ( | ||||||||||
Prepaid expenses and other assets | ( | ||||||||||
Accounts payable | ( | ( | |||||||||
Accrued liabilities | ( | ||||||||||
Other liabilities | ( | ( | |||||||||
Net cash used in operating activities | ( | ( | |||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Issuance of ordinary shares under share-based compensation plans | |||||||||||
Employees' taxes paid upon vesting of restricted share units | ( | ( | |||||||||
Repayments on term loan | ( | ( | |||||||||
Net cash provided by (used in) financing activities | ( | ||||||||||
Net decrease in cash | ( | ( | |||||||||
Cash at beginning of period | |||||||||||
Cash at end of period | $ | $ | |||||||||
Supplemental disclosures of cash flow information: | |||||||||||
Cash paid during the period for interest | $ | $ | |||||||||
Cash paid during the period for taxes, net of refunds | $ | $ | |||||||||
Supplemental disclosures of non-cash activities: | |||||||||||
Capital expenditures included in accounts payable | $ | $ | |||||||||
Right-of-use assets obtained in exchange for new operating lease liabilities, including those acquired through acquisitions | $ | $ |
Note 1 – Basis of Presentation and Selected Significant Accounting Policies |
Note 2 – Inventories |
March 31, 2023 | December 30, 2022 | ||||||||||
Raw materials | $ | $ | |||||||||
Work in process | |||||||||||
Finished goods | |||||||||||
Excess and obsolete adjustment | ( | ( | |||||||||
Total inventories | $ | $ |
Note 3 – Property and Equipment and Other Noncurrent Assets |
March 31, 2023 | December 30, 2022 | ||||||||||
Machinery | $ | $ | |||||||||
Leasehold improvements | |||||||||||
Computer software, hardware, and equipment | |||||||||||
Office furniture, fixtures, and equipment | |||||||||||
Vehicles | |||||||||||
Construction-in-process | |||||||||||
Less accumulated depreciation | ( | ( | |||||||||
Total property and equipment, net | $ | $ |
Note 4 – Intangible Assets |
March 31, 2023 | |||||||||||||||||||||||||||||
Gross value | Accumulated amortization | Accumulated impairment charges | Carrying amount | Weighted average useful life | |||||||||||||||||||||||||
Customer relationships | ( | — | |||||||||||||||||||||||||||
Developed technology | ( | — | |||||||||||||||||||||||||||
Total intangible assets | $ | $ | ( | $ | — | $ |
December 30, 2022 | |||||||||||||||||||||||||||||
Gross value | Accumulated amortization | Accumulated impairment charges | Carrying amount | Weighted average useful life | |||||||||||||||||||||||||
Customer relationships | ( | — | |||||||||||||||||||||||||||
Developed technology | ( | — | |||||||||||||||||||||||||||
Total intangible assets | $ | $ | ( | $ | — | $ |
Note 5 – Leases |
Three Months Ended | |||||||||||
March 31, 2023 | April 1, 2022 | ||||||||||
Operating lease cost | $ | $ |
Three Months Ended | |||||||||||
March 31, 2023 | April 1, 2022 | ||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
Operating cash flows from operating leases | $ | $ |
March 31, 2023 | December 30, 2022 | ||||||||||
Weighted-average remaining lease term of operating leases | |||||||||||
Weighted-average discount rate of operating leases |
2023, remaining | $ | ||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
Thereafter | |||||
Total future minimum lease payments | |||||
Less imputed interest | ( | ||||
Total lease liabilities | $ |
Note 6 – Income Taxes |
Three Months Ended | |||||||||||
March 31, 2023 | April 1, 2022 | ||||||||||
Income tax expense (benefit) | $ | ( | $ | ||||||||
Income (loss) before income taxes | $ | ( | $ | ||||||||
Effective income tax rate | % | % |
Note 7 – Employee Benefit Programs |
Note 8 – Long-Term Debt |
March 31, 2023 | December 30, 2022 | ||||||||||
Term loan | $ | $ | |||||||||
Revolving credit facility | |||||||||||
Total principal amount of long-term debt | |||||||||||
Less unamortized debt issuance costs | ( | ( | |||||||||
Total long-term debt, net | |||||||||||
Less current portion | ( | ( | |||||||||
Total long-term debt, less current portion, net | $ | $ |
Note 9 – Share‑Based Compensation |
Number of Stock Options | |||||||||||||||||||||||
Service condition | Weighted average exercise price per share | Weighted average remaining contractual term | Aggregate intrinsic value | ||||||||||||||||||||
Outstanding, December 30, 2022 | $ | ||||||||||||||||||||||
Granted | $ | ||||||||||||||||||||||
Exercised | ( | $ | |||||||||||||||||||||
Forfeited or expired | ( | $ | |||||||||||||||||||||
Outstanding, March 31, 2023 | $ | $ | |||||||||||||||||||||
Exercisable, March 31, 2023 | $ | $ |
Number of Restricted Share Units | |||||||||||||||||||||||
Service condition | Performance condition | Market condition | Weighted average grant-date fair value per share | ||||||||||||||||||||
Unvested, December 30, 2022 | $ | ||||||||||||||||||||||
Granted | $ | ||||||||||||||||||||||
Vested | ( | — | — | $ | |||||||||||||||||||
Forfeited | ( | — | — | $ | |||||||||||||||||||
Unvested, March 31, 2023 | $ |
Note 10 – Earnings per Share |
Three Months Ended | |||||||||||
March 31, 2023 | April 1, 2022 | ||||||||||
Numerator: | |||||||||||
Net income (loss) | $ | ( | $ | ||||||||
Denominator: | |||||||||||
Basic weighted average ordinary shares outstanding | |||||||||||
Dilutive effect of options | |||||||||||
Dilutive effect of RSUs | |||||||||||
Dilutive effect of ESPP | |||||||||||
Diluted weighted average ordinary shares outstanding | |||||||||||
Securities excluded from the calculation of diluted weighted average ordinary shares outstanding (1) | |||||||||||
Net income (loss) per share: | |||||||||||
Basic | $ | $ | |||||||||
Diluted | $ | $ |
Note 11 – Segment Information |
Three Months Ended | |||||||||||
March 31, 2023 | April 1, 2022 | ||||||||||
United States of America | $ | $ | |||||||||
Singapore | |||||||||||
Europe | |||||||||||
Other | |||||||||||
Total net sales | $ | $ |
Cautionary Statement Concerning Forward-Looking Statements |
Overview |
Three Months Ended | |||||||||||
March 31, 2023 | April 1, 2022 | ||||||||||
(dollars in thousands, except per share amounts) | |||||||||||
Net sales | $ | 225,870 | $ | 293,146 | |||||||
Gross margin | 14.7 | % | 15.0 | % | |||||||
Non-GAAP gross margin | 15.5 | % | 16.0 | % | |||||||
Operating margin | 2.1 | % | 3.6 | % | |||||||
Non-GAAP operating margin | 6.1 | % | 8.4 | % | |||||||
Net income (loss) | $ | (5) | $ | 8,039 | |||||||
Non-GAAP net income | $ | 11,128 | $ | 20,178 | |||||||
Diluted EPS | $ | 0.00 | $ | 0.28 | |||||||
Non-GAAP diluted EPS | $ | 0.38 | $ | 0.70 |
Macroeconomic Conditions and Business Update |
Results of Operations |
Three Months Ended | |||||||||||
March 31, 2023 | April 1, 2022 | ||||||||||
(in thousands | |||||||||||
Net sales | $ | 225,870 | $ | 293,146 | |||||||
Cost of sales | 192,630 | 249,214 | |||||||||
Gross profit | 33,240 | 43,932 | |||||||||
Operating expenses: | |||||||||||
Research and development | 4,313 | 4,851 | |||||||||
Selling, general, and administrative | 20,167 | 23,267 | |||||||||
Amortization of intangible assets | 3,966 | 5,349 | |||||||||
Total operating expenses | 28,446 | 33,467 | |||||||||
Operating income | 4,794 | 10,465 | |||||||||
Interest expense, net | 4,550 | 1,532 | |||||||||
Other expense, net | 784 | 84 | |||||||||
Income (loss) before income taxes | (540) | 8,849 | |||||||||
Income tax expense (benefit) | (535) | 810 | |||||||||
Net income (loss) | $ | (5) | $ | 8,039 |
Three Months Ended | |||||||||||
March 31, 2023 | April 1, 2022 | ||||||||||
Net sales | 100.0 | 100.0 | |||||||||
Cost of sales | 85.3 | 85.0 | |||||||||
Gross profit | 14.7 | 15.0 | |||||||||
Operating expenses: | |||||||||||
Research and development | 1.9 | 1.7 | |||||||||
Selling, general, and administrative | 8.9 | 7.9 | |||||||||
Amortization of intangible assets | 1.8 | 1.8 | |||||||||
Total operating expenses | 12.6 | 11.4 | |||||||||
Operating income | 2.1 | 3.6 | |||||||||
Interest expense, net | 2.0 | 0.5 | |||||||||
Other expense, net | 0.3 | 0.0 | |||||||||
Income (loss) before income taxes | (0.2) | 3.0 | |||||||||
Income tax expense (benefit) | (0.2) | 0.3 | |||||||||
Net income (loss) | — | 2.7 |
Comparison of the three months ended March 31, 2023 and April 1, 2022 |
Three Months Ended | Change | ||||||||||||||||||||||
March 31, 2023 | April 1, 2022 | Amount | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Net sales | $ | 225,870 | $ | 293,146 | $ | (67,276) | (22.9) | % |
Three Months Ended | Change | ||||||||||||||||||||||
March 31, 2023 | April 1, 2022 | Amount | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Cost of sales | $ | 192,630 | $ | 249,214 | $ | (56,584) | (22.7) | % | |||||||||||||||
Gross profit | $ | 33,240 | $ | 43,932 | $ | (10,692) | (24.3) | % | |||||||||||||||
Gross margin | 14.7 | % | 15.0 | % | -30 | bps |
Three Months Ended | Change | ||||||||||||||||||||||
March 31, 2023 | April 1, 2022 | Amount | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Research and development | $ | 4,313 | $ | 4,851 | $ | (538) | (11.1) | % |
Three Months Ended | Change | ||||||||||||||||||||||
March 31, 2023 | April 1, 2022 | Amount | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Selling, general, and administrative | $ | 20,167 | $ | 23,267 | $ | (3,100) | (13.3) | % |
Three Months Ended | Change | ||||||||||||||||||||||
March 31, 2023 | April 1, 2022 | Amount | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Amortization of intangible assets | $ | 3,966 | $ | 5,349 | $ | (1,383) | (25.9) | % |
Three Months Ended | Change | ||||||||||||||||||||||
March 31, 2023 | April 1, 2022 | Amount | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Interest expense, net | $ | 4,550 | $ | 1,532 | $ | 3,018 | 197.0 | % | |||||||||||||||
Weighted average borrowings outstanding | $ | 302,479 | $ | 294,959 | $ | 7,520 | 2.5 | % | |||||||||||||||
Weighted average borrowing rate | 6.10 | % | 1.83 | % | +427 bps |
Three Months Ended | Change | ||||||||||||||||||||||
March 31, 2023 | April 1, 2022 | Amount | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Other expense, net | $ | 784 | $ | 84 | $ | 700 | 833.3 | % |
Three Months Ended | Change | ||||||||||||||||||||||
March 31, 2023 | April 1, 2022 | Amount | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Income tax expense (benefit) | $ | (535) | $ | 810 | $ | (1,345) | n/m | ||||||||||||||||
Income (loss) before income taxes | $ | (540) | $ | 8,849 | $ | (9,389) | n/m | ||||||||||||||||
Effective income tax rate | 99.1 | % | 9.2 | % | +8,990 bps |
Non‑GAAP Financial Results |
Three Months Ended | |||||||||||
March 31, 2023 | April 1, 2022 | ||||||||||
(dollars in thousands) | |||||||||||
U.S. GAAP gross profit | $ | 33,240 | $ | 43,932 | |||||||
Non-GAAP adjustments: | |||||||||||
Share-based compensation | 421 | 551 | |||||||||
Fair value adjustment to inventory from acquisitions (1) | — | 2,492 | |||||||||
Other (2) | 1,287 | — | |||||||||
Non-GAAP gross profit | $ | 34,948 | $ | 46,975 | |||||||
U.S. GAAP gross margin | 14.7 | % | 15.0 | % | |||||||
Non-GAAP gross margin | 15.5 | % | 16.0 | % |
Three Months Ended | |||||||||||
March 31, 2023 | April 1, 2022 | ||||||||||
(dollars in thousands, except per share amounts) | |||||||||||
U.S. GAAP operating income | $ | 4,794 | $ | 10,465 | |||||||
Non-GAAP adjustments: | |||||||||||
Amortization of intangible assets | 3,966 | 5,349 | |||||||||
Share-based compensation | 3,637 | 2,897 | |||||||||
Settlement loss (1) | — | 3,100 | |||||||||
Fair value adjustment to inventory from acquisitions (2) | — | 2,492 | |||||||||
Acquisition costs (3) | — | 275 | |||||||||
Other (4) | 1,324 | — | |||||||||
Non-GAAP operating income | $ | 13,721 | $ | 24,578 | |||||||
U.S. GAAP operating margin | 2.1 | % | 3.6 | % | |||||||
Non-GAAP operating margin | 6.1 | % | 8.4 | % |
Three Months Ended | |||||||||||
March 31, 2023 | April 1, 2022 | ||||||||||
(dollars in thousands, except per share amounts) | |||||||||||
U.S. GAAP net income (loss) | $ | (5) | $ | 8,039 | |||||||
Non-GAAP adjustments: | |||||||||||
Amortization of intangible assets | 3,966 | 5,349 | |||||||||
Share-based compensation | 3,637 | 2,897 | |||||||||
Settlement loss (1) | — | 3,100 | |||||||||
Fair value adjustment to inventory from acquisitions (2) | — | 2,492 | |||||||||
Acquisition costs (3) | — | 275 | |||||||||
Other (4) | 1,324 | — | |||||||||
Tax adjustments related to non-GAAP adjustments (5) | 2,206 | (1,974) | |||||||||
Non-GAAP net income | $ | 11,128 | $ | 20,178 | |||||||
U.S. GAAP diluted EPS | $ | 0.00 | $ | 0.28 | |||||||
Non-GAAP diluted EPS | $ | 0.38 | $ | 0.70 | |||||||
Shares used to compute non-GAAP diluted EPS | 29,412,185 | 29,023,455 |
Liquidity and Capital Resources |
Three Months Ended | |||||||||||
March 31, 2023 | April 1, 2022 | ||||||||||
(in thousands) | |||||||||||
Cash used in operating activities | $ | (10,873) | $ | (36,278) | |||||||
Cash used in investing activities | (6,819) | (3,417) | |||||||||
Cash provided by (used in) financing activities | 59 | (1,284) | |||||||||
Net decrease in cash | $ | (17,633) | $ | (40,979) |
Critical Accounting Estimates |
Foreign Currency Exchange Risk |
Interest Rate Risk |
Evaluation of Disclosure Controls and Procedures |
Limitations on Effectiveness of Controls and Procedures |
Changes in Internal Control Over Financial Reporting |
Remediation |
Exhibit Number | Description | |||||||
101.INS* | Inline XBRL Instance Document | |||||||
101.SCH* | Inline XBRL Taxonomy Extension Schema Document | |||||||
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
104 | Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101) |
ICHOR HOLDINGS, LTD. | ||||||||
Date: May 10, 2023 | By: | /s/ Jeffrey S. Andreson | ||||||
Jeffrey S. Andreson | ||||||||
Chief Executive Officer (Principal Executive Officer) | ||||||||
Date: May 10, 2023 | By: | /s/ Larry J. Sparks | ||||||
Larry J. Sparks | ||||||||
Chief Financial Officer (Principal Accounting and Financial Officer) |
Date: May 10, 2023 | By: | /s/ Jeffrey S. Andreson | ||||||
Jeffrey S. Andreson | ||||||||
Chief Executive Officer |
Date: May 10, 2023 | By: | /s/ Larry J. Sparks | ||||||
Larry J. Sparks | ||||||||
Chief Financial Officer |
Date: May 10, 2023 | By: | /s/ Jeffrey S. Andreson | ||||||
Jeffrey S. Andreson | ||||||||
Chief Executive Officer |
Date: May 10, 2023 | By: | /s/ Larry J. Sparks | ||||||
Larry J. Sparks | ||||||||
Chief Financial Officer |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred shares, par value (in usd per share) | $ 0.0001 | $ 0.0001 |
Preferred shares, authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred shares, issued (in shares) | 0 | 0 |
Preferred shares, outstanding (in shares) | 0 | 0 |
Ordinary shares, par value (in usd per share) | $ 0.0001 | $ 0.0001 |
Ordinary shares, authorized (in shares) | 200,000,000 | 200,000,000 |
Ordinary shares, outstanding (in shares) | 29,034,946 | 28,861,949 |
Ordinary shares, issued (in shares) | 33,472,385 | 33,299,388 |
Treasury stock, shares (in shares) | 4,437,439 | 4,437,439 |
Consolidated Statements of Operations - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Income Statement [Abstract] | ||
Net sales | $ 225,870 | $ 293,146 |
Cost of sales | 192,630 | 249,214 |
Gross profit | 33,240 | 43,932 |
Operating expenses: | ||
Research and development | 4,313 | 4,851 |
Selling, general, and administrative | 20,167 | 23,267 |
Amortization of intangible assets | 3,966 | 5,349 |
Total operating expenses | 28,446 | 33,467 |
Operating income | 4,794 | 10,465 |
Interest expense, net | 4,550 | 1,532 |
Other expense, net | 784 | 84 |
Income (loss) before income taxes | (540) | 8,849 |
Income tax expense (benefit) | (535) | 810 |
Net income (loss) | $ (5) | $ 8,039 |
Net income (loss) per share | ||
Net income per share, basic (in usd per share) | $ 0.00 | $ 0.28 |
Net income per share, diluted (in usd per share) | $ 0.00 | $ 0.28 |
Shares used to compute Net income (loss) per share: | ||
Shares used to compute net income per share, basic (in shares) | 28,984,878 | 28,592,629 |
Shares used to compute net income per share, diluted (in shares) | 28,984,878 | 29,023,455 |
Basis of Presentation and Selected Significant Accounting Policies |
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Mar. 31, 2023 | |||||||
Accounting Policies [Abstract] | |||||||
Basis of Presentation and Selected Significant Accounting Policies |
Basis of Presentation These consolidated unaudited financial statements have been prepared in accordance with generally accepted accounting principles in the U.S. (“GAAP”). All intercompany balances and transactions have been eliminated upon consolidation. All dollar figures presented in tables in the notes to consolidated financial statements are in thousands, except per share amounts. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted as permitted by the SEC's rules and regulations for interim reporting. These consolidated financial statements should be read in conjunction with our audited financial statements and notes thereto included in our Annual Report on Form 10‑K for the year ended December 30, 2022. Year End We use a 52- or 53-week fiscal year ending on the last Friday in December. Our fiscal years ending December 29, 2023 and December 30, 2022 each are 52 weeks. References to 2023 and 2022 relate to the fiscal years then ended. The three-month periods ended March 31, 2023 and April 1, 2022 each are 13 weeks. References to the first quarter of 2023 and 2022 relate to the three-month periods then ended. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods presented. We base our estimates and judgments on historical experience and on various other assumptions that we believe are reasonable under the circumstances. Actual results could differ from the estimates made by management. Significant estimates include inventory valuation and impairment analysis for both definite‑lived intangible assets and goodwill. Cash and Cash Equivalents Cash and cash equivalents consist of deposits and financial instruments which are readily convertible into cash and have original maturities of 90 days or less at the time of acquisition. Fair Value of Financial Instruments The carrying values of our financial instruments, including cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued liabilities, and long-term debt, net of unamortized debt issuance costs, approximate fair value. Revenue Recognition We recognize revenue when control of promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. This amount is recorded as net sales in our consolidated statements of operations. Transaction price – In most of our contracts, prices are generally determined by a customer-issued purchase order and generally remain fixed over the duration of the contract. Certain contracts contain variable consideration, including early-payment discounts and rebates. When a contract includes variable consideration, we evaluate the estimate of the variable consideration to determine whether the estimate needs to be constrained; therefore, we include the variable consideration in the transaction price only to the extent that it is probable that a significant reversal will not occur. Variable consideration estimates are updated at each reporting date. Historically, we have not incurred significant costs to obtain a contract. All amounts billed to a customer relating to shipping and handling are classified as net sales, while all costs incurred by us for shipping and handling are classified as cost of sales. Performance obligations – Substantially all of our performance obligations pertain to promised goods (“products”), which are primarily comprised of fluid delivery subsystems, weldments, and other components. Most of our contracts contain a single performance obligation and are generally completed within twelve months. Product sales are recognized at a point-in-time, generally upon delivery, as such term is defined within the contract, as that is when control of the promised good has transferred. Products are covered by a standard assurance warranty, generally extended for a period of to two years depending on the customer, which promises that delivered products conform to contract specifications. As such, we account for such warranties under ASC 460, Guarantees, and not as a separate performance obligation. Contract balances – Accounts receivable represents our unconditional right to receive consideration from our customers. Accounts receivable are carried at invoice price less an estimate for doubtful accounts and estimated payment discounts. Payment terms vary by customer but are generally due within 15-60 days. Historically, we have not incurred significant payment issues with our customers. We had no significant contract assets or liabilities on our consolidated balance sheets in any of the periods presented. Accounting Pronouncements Recently Adopted In October 2021, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2021‑08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (Topic 805). This ASU requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities (deferred revenue) from acquired contracts using the revenue recognition guidance in Topic 606. At the acquisition date, the acquirer applies the revenue model as if it had originated the acquired contracts. We adopted the ASU on the first day of 2023 and it did not have a material impact on our consolidated financial statements.
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Inventories |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories |
Inventories consist of the following:
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Property and Equipment and Other Noncurrent Assets |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment and Other Noncurrent Assets |
Property and equipment consist of the following:
Depreciation expense was $4.3 million and $4.0 million for the first quarter of 2023 and 2022, respectively. Cloud Computing Implementation Costs We capitalize implementation costs associated with hosting arrangement that are service contracts. These costs are recorded to prepaid expenses or other noncurrent assets. To-date, these costs are those incurred to implement a new company-wide ERP system. The balance of capitalized cloud computing implementation costs, net of accumulated amortization, was $11.4 million and $11.6 million as of March 31, 2023 and December 30, 2022, respectively, and is included in other assets on our consolidated balance sheets. The related amortization expense was $0.2 million and $0.2 million during the first quarter of 2023 and 2022, respectively, and is included in selling, general, and administrative expense on our consolidated statements of operations.
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Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets |
Definite‑lived intangible assets consist of the following:
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases |
Operating lease right-of-use (“ROU”) assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. For purposes of calculating operating lease ROU assets and operating lease liabilities, we use the non-cancelable lease term plus options to extend that we are reasonably certain to take. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. Our leases generally do not provide an implicit rate. As such, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We lease facilities under various non-cancelable operating leases expiring through 2031. In addition to base rental payments, we are generally responsible for our proportionate share of operating expenses, including facility maintenance, insurance, and property taxes. As these amounts are variable, they are not included in lease liabilities. The components of lease expense are as follows:
Supplemental cash flow information related to leases is as follows:
Supplemental balance sheet information related to leases is as follows:
Future minimum lease payments under non-cancelable leases are as follows as of March 31, 2023:
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Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes |
Income tax information for the periods reported is as follows:
Our effective tax rates for the three months ended March 31, 2023 and April 1, 2022 differ from the statutory rate primarily due to taxes on foreign income that differ from the U.S. tax rate, including a tax holiday in Singapore. Our effective tax rate of 99.1% for the first quarter of 2023 is primarily due to projected pre-tax loss in the U.S. for 2023, which generates tax benefits, partially offset by projected pre-tax income in Singapore, our primary source of non-U.S. pre-tax income and for which we participate in a tax holiday through 2026. The ending balance for the unrecognized tax benefits for uncertain tax positions was approximately $4.5 million at March 31, 2023. The related interest and penalties were insignificant. The uncertain tax positions that are reasonably possible to decrease in the next twelve months are insignificant. As of March 31, 2023, we were under examination by the Inland Revenue Board of Malaysia for the years 2016 to 2020.
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Employee Benefit Programs |
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Mar. 31, 2023 | |||||||
Retirement Benefits [Abstract] | |||||||
Employee Benefit Programs |
401(k) Plan We sponsor a 401(k) plan available to employees of our U.S.‑based subsidiaries. Participants may make salary deferral contributions not to exceed 50% of a participant’s annual compensation or the maximum amount otherwise allowed by law. Eligible employees receive a discretionary matching contribution equal to 50% of a participant’s deferral, up to an annual matching maximum of 4% of a participant’s annual compensation. Matching contributions were $0.9 million and $1.0 million for the first quarter of 2023 and 2022, respectively.
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Long-Term Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt |
Long‑term debt consists of the following:
On October 29, 2021, we entered into an amended and restated credit agreement, which includes a group of financial institutions as direct lenders underlying the agreement. The credit agreement includes a $150.0 million term loan facility and a $250.0 million revolving credit facility (together, “credit facilities”). Term loan principal payments of $1.9 million are due on a quarterly basis. The credit facilities mature on October 29, 2026. Interest is charged at either the Base Rate or the Bloomberg Short-Term Bank Yield (“BSBY”) Rate (as such terms are defined in the credit agreement) at our option, plus an applicable margin. The Base Rate is equal to the higher of i) the Prime Rate, ii) the Federal Funds Rate plus 0.5%, or iii) the BSBY Rate plus 1.00%. The applicable margin on Base Rate and BSBY Rate loans is 0.375-1.375% and 1.375-2.375% per annum, respectively, depending on our leverage ratio, which is based on trailing 12-month EBITDA, as defined in our credit agreement. We are also charged a commitment fee of 0.175%-0.350%, depending on our leverage ratio, on the unused portion of our revolving credit facility. Base Rate interest payments and commitment fees are due quarterly. BSBY Rate interest payments are due on the last day of the applicable interest period, or quarterly for applicable interest periods longer than 3 months. At March 31, 2023, our credit facilities bore interest under the BSBY rate option of 6.51%.
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Share-Based Compensation |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation |
The 2016 Omnibus Incentive Plan (the “2016 Plan”) provides for grants of share‑based awards to employees, directors, and consultants. Awards may be in the form of stock options (“options”), tandem and non‑tandem stock appreciation rights, restricted share awards or restricted share units (“RSUs”), performance awards, and other share‑based awards. Forfeited or expired awards are returned to the incentive plan pool for future grants. Awards generally vest over four years, 25% on the first anniversary of the date of grant and quarterly thereafter over the remaining 3 years. Upon vesting of RSUs, shares are withheld to cover statutory minimum withholding taxes. Shares withheld are not reflected as an issuance of ordinary shares within our consolidated statements of shareholders’ equity, as the shares were never issued, and the associated tax payments are reflected as financing activities within our consolidated statements of cash flows. Share‑based compensation expense across all plans for options, RSUs, and employee share purchase rights was $3.6 million and $2.9 million for the first quarter of 2023 and 2022. Stock Options The following table summarizes option activity:
Restricted Share Units The following table summarizes RSU activity:
Employee Share Purchase Plan The 2017 Employee Stock Purchase Plan (the “2017 ESPP”) grants employees the ability to designate a portion of their base-pay to purchase ordinary shares at a price equal to 85% of the fair market value of our ordinary shares on the first or last day of each 6 month purchase period. Purchase periods begin on January 1 or July 1 and end on June 30 or December 31, or the next business day if such date is not a business day. Shares are purchased on the last day of the purchase period. As of March 31, 2023, approximately 2.2 million ordinary shares remain available for purchase under the 2017 ESPP.
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Earnings per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per Share |
The following table sets forth the computation of basic and diluted earnings per share and a reconciliation of the numerator and denominator used in the calculation:
(1)Represents potentially dilutive options and RSUs excluded from the calculation of diluted weighted average ordinary shares outstanding, because including them would have been antidilutive under the treasury stock method.
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Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information |
Our Chief Operating Decision Maker, the Chief Executive Officer, reviews our results of operations on a consolidated level and executive staff is structured by function rather than by product category. Additionally, key resources, decisions, and assessment of performance are analyzed at a company‑wide level. Therefore, we operate in one operating segment. Foreign operations are conducted primarily through our wholly owned subsidiaries in Singapore and Malaysia, and to a lesser degree, Scotland, Korea, and Mexico. Our principal markets include North America, Asia, and to a lesser degree, Europe. Sales by geographic area represents sales to unaffiliated customers based upon the location to which the products were shipped. The following table sets forth sales by geographic area:
Foreign long-lived assets, exclusive of deferred tax assets, were $52.5 million and $52.8 million at March 31, 2023 and December 30, 2022, respectively.
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Basis of Presentation and Selected Significant Accounting Policies (Policies) |
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Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation These consolidated unaudited financial statements have been prepared in accordance with generally accepted accounting principles in the U.S. (“GAAP”). All intercompany balances and transactions have been eliminated upon consolidation. All dollar figures presented in tables in the notes to consolidated financial statements are in thousands, except per share amounts. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted as permitted by the SEC's rules and regulations for interim reporting. These consolidated financial statements should be read in conjunction with our audited financial statements and notes thereto included in our Annual Report on Form 10‑K for the year ended December 30, 2022.
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Year End | Year End We use a 52- or 53-week fiscal year ending on the last Friday in December. Our fiscal years ending December 29, 2023 and December 30, 2022 each are 52 weeks. References to 2023 and 2022 relate to the fiscal years then ended. The three-month periods ended March 31, 2023 and April 1, 2022 each are 13 weeks. References to the first quarter of 2023 and 2022 relate to the three-month periods then ended.
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Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods presented. We base our estimates and judgments on historical experience and on various other assumptions that we believe are reasonable under the circumstances. Actual results could differ from the estimates made by management. Significant estimates include inventory valuation and impairment analysis for both definite‑lived intangible assets and goodwill.
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Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of deposits and financial instruments which are readily convertible into cash and have original maturities of 90 days or less at the time of acquisition.
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Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying values of our financial instruments, including cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued liabilities, and long-term debt, net of unamortized debt issuance costs, approximate fair value.
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Revenue Recognition | Revenue Recognition We recognize revenue when control of promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. This amount is recorded as net sales in our consolidated statements of operations. Transaction price – In most of our contracts, prices are generally determined by a customer-issued purchase order and generally remain fixed over the duration of the contract. Certain contracts contain variable consideration, including early-payment discounts and rebates. When a contract includes variable consideration, we evaluate the estimate of the variable consideration to determine whether the estimate needs to be constrained; therefore, we include the variable consideration in the transaction price only to the extent that it is probable that a significant reversal will not occur. Variable consideration estimates are updated at each reporting date. Historically, we have not incurred significant costs to obtain a contract. All amounts billed to a customer relating to shipping and handling are classified as net sales, while all costs incurred by us for shipping and handling are classified as cost of sales. Performance obligations – Substantially all of our performance obligations pertain to promised goods (“products”), which are primarily comprised of fluid delivery subsystems, weldments, and other components. Most of our contracts contain a single performance obligation and are generally completed within twelve months. Product sales are recognized at a point-in-time, generally upon delivery, as such term is defined within the contract, as that is when control of the promised good has transferred. Products are covered by a standard assurance warranty, generally extended for a period of to two years depending on the customer, which promises that delivered products conform to contract specifications. As such, we account for such warranties under ASC 460, Guarantees, and not as a separate performance obligation. Contract balances – Accounts receivable represents our unconditional right to receive consideration from our customers. Accounts receivable are carried at invoice price less an estimate for doubtful accounts and estimated payment discounts. Payment terms vary by customer but are generally due within 15-60 days. Historically, we have not incurred significant payment issues with our customers. We had no significant contract assets or liabilities on our consolidated balance sheets in any of the periods presented.
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Accounting Pronouncements Recently Adopted | Accounting Pronouncements Recently Adopted In October 2021, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2021‑08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (Topic 805). This ASU requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities (deferred revenue) from acquired contracts using the revenue recognition guidance in Topic 606. At the acquisition date, the acquirer applies the revenue model as if it had originated the acquired contracts. We adopted the ASU on the first day of 2023 and it did not have a material impact on our consolidated financial statements.
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Inventories (Tables) |
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventories | Inventories consist of the following:
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Property and Equipment and Other Noncurrent Assets (Tables) |
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Property and Equipment | Property and equipment consist of the following:
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Intangible Assets (Tables) |
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Definite-Lived Intangible Assets | Definite‑lived intangible assets consist of the following:
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Leases (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Lease Expense | The components of lease expense are as follows:
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Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases is as follows:
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Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases is as follows:
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Future Minimum Lease Payments Under Non-Cancelable Leases | Future minimum lease payments under non-cancelable leases are as follows as of March 31, 2023:
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Income Taxes (Tables) |
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Income Taxes | Income tax information for the periods reported is as follows:
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Long-Term Debt (Tables) |
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt | Long‑term debt consists of the following:
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Share-Based Compensation (Tables) |
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Option Activity | The following table summarizes option activity:
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Schedule of RSU Activity | The following table summarizes RSU activity:
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Earnings per Share (Tables) |
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share and a reconciliation of the numerator and denominator used in the calculation:
(1)Represents potentially dilutive options and RSUs excluded from the calculation of diluted weighted average ordinary shares outstanding, because including them would have been antidilutive under the treasury stock method.
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Segment Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Sales By Geographic Area | The following table sets forth sales by geographic area:
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Basis of Presentation and Selected Significant Accounting Policies - Additional Information (Details) |
3 Months Ended |
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Mar. 31, 2023 | |
Basis Of Presentation [Line Items] | |
Original maturities acquisition period | 90 days |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-04-01 | |
Basis Of Presentation [Line Items] | |
Performance obligation satisfaction period | 12 months |
Minimum | |
Basis Of Presentation [Line Items] | |
Extended product warranty period | 1 year |
Payment terms, due period | 15 days |
Maximum | |
Basis Of Presentation [Line Items] | |
Extended product warranty period | 2 years |
Payment terms, due period | 60 days |
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 196,504 | $ 197,726 |
Work in process | 39,733 | 56,291 |
Finished goods | 54,306 | 47,186 |
Excess and obsolete adjustment | (19,005) | (17,543) |
Total inventories | $ 271,538 | $ 283,660 |
Property and Equipment and Other Noncurrent Assets - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 4.3 | $ 4.0 |
Property and Equipment and Other Noncurrent Assets - Summary of Capitalized Cloud Computing Implementation Cost (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
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Property, Plant and Equipment [Abstract] | |||
Capitalized cloud computing implementation cost | $ 11.4 | $ 11.6 | |
Capitalized costs amortized during the period | $ (0.2) | $ (0.2) |
Intangible Assets - Schedule of Definite-Lived Intangible Assets (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Mar. 31, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
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Finite Lived Intangible Assets [Line Items] | |||
Gross value | $ 128,069 | $ 128,069 | |
Accumulated amortization | (60,013) | (56,047) | |
Carrying amount | 68,056 | 72,022 | |
Customer relationships | |||
Finite Lived Intangible Assets [Line Items] | |||
Gross value | 117,022 | 117,022 | |
Accumulated amortization | (55,202) | (51,337) | |
Carrying amount | $ 61,820 | 65,685 | |
Customer relationships | Weighted Average | |||
Finite Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 8 years 4 months 24 days | 8 years 4 months 24 days | |
Developed technology | |||
Finite Lived Intangible Assets [Line Items] | |||
Gross value | $ 11,047 | 11,047 | |
Accumulated amortization | (4,811) | (4,710) | |
Carrying amount | $ 6,236 | $ 6,337 | |
Developed technology | Weighted Average | |||
Finite Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 10 years | 10 years |
Leases - Additional Information (Detail) |
3 Months Ended |
---|---|
Mar. 31, 2023 | |
Leases [Abstract] | |
Non-cancellable net operating lease expiration year | 2031 |
Leases - Components of Lease Expense (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Leases [Abstract] | ||
Operating lease cost | $ 2,411 | $ 2,045 |
Leases - Supplemental Cash Flow Information Related to Leases (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 2,237 | $ 1,823 |
Leases - Supplemental Balance Sheet Information Related to Leases (Detail) |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Leases [Abstract] | ||
Weighted-average remaining lease term of operating leases | 5 years 2 months 12 days | 5 years 3 months 18 days |
Weighted-average discount rate of operating leases | 3.20% | 3.00% |
Leases - Future Minimum Lease Payments Under Non-Cancelable Leases (Detail) $ in Thousands |
Mar. 31, 2023
USD ($)
|
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Leases [Abstract] | |
2023, remaining | $ 7,117 |
2024 | 9,074 |
2025 | 8,418 |
2026 | 7,968 |
2027 | 6,968 |
Thereafter | 5,367 |
Total future minimum lease payments | 44,912 |
Less imputed interest | (3,467) |
Total lease liabilities | $ 41,445 |
Income Taxes - Schedule of Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||
Income tax expense (benefit) | $ (535) | $ 810 |
Income (loss) before income taxes | $ (540) | $ 8,849 |
Effective income tax rate | 99.10% | 9.20% |
Income Taxes - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 99.10% | 9.20% |
Unrecognized tax benefits for uncertain tax positions | $ 4.5 |
Employee Benefit Programs - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Defined Contribution Plan Disclosure [Line Items] | ||
Percentage of maximum annual contributions per employee | 50.00% | |
Percentage of eligible employee receive discretionary matching contribution | 50.00% | |
Employee matching contributions | $ 0.9 | $ 1.0 |
Maximum | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Percentage of maximum annual contributions per employee | 4.00% |
Long-Term Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Line Of Credit Facility [Line Items] | ||
Total principal amount of long-term debt | $ 300,625 | $ 302,500 |
Less unamortized debt issuance costs | (1,666) | (1,782) |
Total long-term debt, net | 298,959 | 300,718 |
Less current portion | (7,500) | (7,500) |
Long-term debt, less current portion, net | 291,459 | 293,218 |
Term loan | ||
Line Of Credit Facility [Line Items] | ||
Total principal amount of long-term debt | 140,625 | 142,500 |
Revolving credit facility | ||
Line Of Credit Facility [Line Items] | ||
Total principal amount of long-term debt | $ 160,000 | $ 160,000 |
Share-Based Compensation - Additional Information (Details) - USD ($) shares in Millions, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based compensation expense for options, RSUs and employee share purchase rights across all plans | $ 3.6 | $ 2.9 |
The 2016 Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based compensation arrangement by share-based payment award, expiration period | 4 years | |
Awards vesting percentage | 25.00% | |
Awards vesting period | 3 years | |
2017 Employee Stock Purchase Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Purchase price equal to percentage of fair market value of ordinary shares | 85.00% | |
2017 Employee Stock Purchase Plan | Ordinary Shares | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Ordinary shares remain available for purchase | 2.2 |
Earnings per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Earnings Per Share Basic And Diluted [Line Items] | ||
Net income (loss) | $ (5) | $ 8,039 |
Basic weighted average ordinary shares outstanding | 28,984,878 | 28,592,629 |
Diluted weighted average ordinary shares outstanding | 28,984,878 | 29,023,455 |
Securities excluded from the calculation of diluted weighted average ordinary shares outstanding | 1,879,000 | 267,000 |
Net income (loss) per share: | ||
Basic (in usd per share) | $ 0.00 | $ 0.28 |
Diluted (in usd per share) | $ 0.00 | $ 0.28 |
ESPP | ||
Earnings Per Share Basic And Diluted [Line Items] | ||
Dilutive effect of shares | 0 | 2,138 |
Options | ||
Earnings Per Share Basic And Diluted [Line Items] | ||
Dilutive effect of shares | 0 | 292,828 |
RSUs | ||
Earnings Per Share Basic And Diluted [Line Items] | ||
Dilutive effect of shares | 0 | 135,860 |
Segment Information - Additional Information (Details) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023
USD ($)
Segment
|
Dec. 31, 2022
USD ($)
|
|
Segment Reporting [Abstract] | ||
Number of operating segment | Segment | 1 | |
Foreign long-lived assets, exclusive of deferred tax assets | $ | $ 52.5 | $ 52.8 |
Segment Information - Schedule of Sales By Geographic Area (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Segment Reporting Information [Line Items] | ||
Total net sales | $ 225,870 | $ 293,146 |
United States of America | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 89,052 | 142,470 |
Singapore | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 82,286 | 103,295 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 29,986 | 24,392 |
Other | ||
Segment Reporting Information [Line Items] | ||
Total net sales | $ 24,546 | $ 22,989 |
W