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 |
(State or other jurisdiction of incorporation) | (IRS Employer | ||||
Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
☒ | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company | |||||||||||
Page Number | ||||||||
PART I - FINANCIAL INFORMATION | ||||||||
Item 1. | FINANCIAL STATEMENTS (Unaudited) | |||||||
Consolidated Condensed Balance Sheets as of April 1, 2023 and October 1, 2022 | ||||||||
Consolidated Condensed Statements of Operations for the three and six months ended April 1, 2023 and April 2, 2022 | ||||||||
Consolidated Condensed Statements of Comprehensive Income for the three and six months ended April 1, 2023 and April 2, 2022 | ||||||||
Consolidated Condensed Statements of Changes in Shareholders’ Equity for the three and six months ended April 1, 2023 and April 2, 2022 | ||||||||
Consolidated Condensed Statements of Cash Flows for the six months ended April 1, 2023 and April 2, 2022 | ||||||||
Notes to Consolidated Condensed Financial Statements | ||||||||
Item 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | |||||||
Item 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK | |||||||
Item 4. | CONTROLS AND PROCEDURES | |||||||
PART II - OTHER INFORMATION | ||||||||
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 | |||||||
SIGNATURES |
As of | |||||||||||
April 1, 2023 | October 1, 2022 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Short-term investments | |||||||||||
Accounts and other receivable, net of allowance for doubtful accounts of $ | |||||||||||
Inventories, net | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment, net | |||||||||||
Operating right-of-use assets | |||||||||||
Goodwill | |||||||||||
Intangible assets, net | |||||||||||
Deferred tax assets | |||||||||||
Equity investments | |||||||||||
Other assets | |||||||||||
TOTAL ASSETS | $ | $ | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | |||||||||||
Operating lease liabilities | |||||||||||
Income taxes payable | |||||||||||
Accrued expenses and other current liabilities | |||||||||||
Total current liabilities | |||||||||||
Deferred tax liabilities | |||||||||||
Income taxes payable | |||||||||||
Operating lease liabilities | |||||||||||
Other liabilities | |||||||||||
TOTAL LIABILITIES | $ | $ | |||||||||
Commitments and contingent liabilities (Note 16) | |||||||||||
Shareholders’ equity: | |||||||||||
Preferred stock, without par value: Authorized | $ | $ | |||||||||
Common stock, without par value: Authorized | |||||||||||
Treasury stock, at cost, | ( | ( | |||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
TOTAL SHAREHOLDERS’ EQUITY | $ | $ | |||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | $ |
Three months ended | Six months ended | ||||||||||||||||||||||
April 1, 2023 | April 2, 2022 | April 1, 2023 | April 2, 2022 | ||||||||||||||||||||
Net revenue | $ | $ | $ | $ | |||||||||||||||||||
Cost of sales | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Selling, general and administrative | |||||||||||||||||||||||
Research and development | |||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Income from operations | |||||||||||||||||||||||
Interest income | |||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | |||||||||||||||||||
Income before income taxes | |||||||||||||||||||||||
Provision for income taxes | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Net income per share: | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | $ | $ | $ | $ | |||||||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted |
Three months ended | Six months ended | ||||||||||||||||||||||
April 1, 2023 | April 2, 2022 | April 1, 2023 | April 2, 2022 | ||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive income: | |||||||||||||||||||||||
Foreign currency translation adjustment | ( | ( | |||||||||||||||||||||
Unrecognized actuarial (gain)/loss on pension plan, net of tax | ( | ( | ( | ||||||||||||||||||||
( | ( | ||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||
Unrealized gain/(loss) on derivative instruments, net of tax | ( | ||||||||||||||||||||||
Reclassification adjustment for (gain)/loss on derivative instruments recognized, net of tax | ( | ( | |||||||||||||||||||||
Net increase/(decrease) from derivatives designated as hedging instruments, net of tax | ( | ||||||||||||||||||||||
Total other comprehensive income/(loss) | ( | ( | |||||||||||||||||||||
Comprehensive income | $ | $ | $ | $ |
Common Stock | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive (Loss)/Income | Shareholders' Equity | |||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||
Balances as of October 1, 2022 | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Issuance of stock for services rendered | — | — | |||||||||||||||||||||||||||||||||
Repurchase of common stock | ( | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Issuance of shares for equity-based compensation | ( | — | — | ||||||||||||||||||||||||||||||||
Equity-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Cash dividend declared | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Components of comprehensive income: | |||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | |||||||||||||||||||||||||||||||
Total comprehensive income | — | — | — | ||||||||||||||||||||||||||||||||
Balances as of December 31, 2022 | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Issuance of stock for services rendered | — | — | |||||||||||||||||||||||||||||||||
Repurchase of common stock | ( | ( | — | — | ( | ||||||||||||||||||||||||||||||
Issuance of shares for equity-based compensation | ( | — | — | ||||||||||||||||||||||||||||||||
Equity-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Cash dividend declared | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Components of comprehensive income: | |||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | |||||||||||||||||||||||||||||||
Total comprehensive income | — | — | — | ||||||||||||||||||||||||||||||||
Balances as of April 1, 2023 | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Common Stock | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss | Shareholders' Equity | |||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||
Balances as of October 2, 2021 | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Issuance of stock for services rendered | — | — | |||||||||||||||||||||||||||||||||
Repurchase of common stock | ( | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Issuance of shares for equity-based compensation | ( | — | — | ||||||||||||||||||||||||||||||||
Equity-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Cash dividend declared | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Components of comprehensive income: | |||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Total comprehensive income/(loss) | — | — | — | ( | |||||||||||||||||||||||||||||||
Balances as of January 1, 2022 | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Issuance of stock for services rendered | — | — | |||||||||||||||||||||||||||||||||
Repurchase of common stock | ( | ( | ( | — | — | ( | |||||||||||||||||||||||||||||
Issuance of shares for equity-based compensation | ( | — | — | ||||||||||||||||||||||||||||||||
Equity-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Cash dividend declared | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Components of comprehensive income/(loss) | |||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Total comprehensive income/(loss) | — | — | — | ( | |||||||||||||||||||||||||||||||
Balances as of April 2, 2022 | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Six months ended | |||||||||||
April 1, 2023 | April 2, 2022 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Equity-based compensation and employee benefits | |||||||||||
Adjustment for doubtful accounts | ( | ||||||||||
Adjustment for inventory valuation | ( | ||||||||||
Deferred taxes | ( | ||||||||||
Gain on disposal of property, plant and equipment | ( | ( | |||||||||
Unrealized foreign currency translation | ( | ||||||||||
Changes in operating assets and liabilities, net of assets and liabilities assumed in businesses combinations: | |||||||||||
Accounts and other receivable | |||||||||||
Inventories | ( | ( | |||||||||
Prepaid expenses and other current assets | ( | ||||||||||
Accounts payable, accrued expenses and other current liabilities | ( | ( | |||||||||
Income taxes payable | ( | ( | |||||||||
Other, net | |||||||||||
Net cash provided by operating activities | |||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Acquisition of business, net of cash acquired | ( | ||||||||||
Purchases of property, plant and equipment | ( | ( | |||||||||
Proceeds from sales of property, plant and equipment | |||||||||||
Investment in private equity fund | ( | ||||||||||
Purchase of short-term investments | ( | ( | |||||||||
Maturity of short-term investments | |||||||||||
Net cash (used in)/provided by investing activities | ( | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Payment on short-term debt | ( | ||||||||||
Proceeds from short-term debt | |||||||||||
Payment for finance lease | ( | ( | |||||||||
Repurchase of common stock/treasury stock | ( | ( | |||||||||
Common stock cash dividends paid | ( | ( | |||||||||
Net cash used in financing activities | ( | ( | |||||||||
Effect of exchange rate changes on cash and cash equivalents | ( | ||||||||||
Changes in cash and cash equivalents | ( | ||||||||||
Cash and cash equivalents at beginning of period | |||||||||||
Cash and cash equivalents at end of period | $ | $ | |||||||||
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING ACTIVITIES: | |||||||||||
Property, plant and equipment included in accounts payable and accrued expenses | $ | $ | |||||||||
CASH PAID FOR: | |||||||||||
Interest | $ | $ | |||||||||
Income taxes, net of refunds | $ | $ |
As of | |||||||||||
(in thousands) | April 1, 2023 | October 1, 2022 | |||||||||
Short-term investments, available-for-sale (1) | $ | $ | |||||||||
Inventories, net: | |||||||||||
Raw materials and supplies | $ | $ | |||||||||
Work in process | |||||||||||
Finished goods | |||||||||||
Inventory reserves | ( | ( | |||||||||
$ | $ | ||||||||||
Property, plant and equipment, net: | |||||||||||
Land | $ | $ | |||||||||
Buildings and building improvements | |||||||||||
Leasehold improvements | |||||||||||
Data processing equipment and software | |||||||||||
Machinery, equipment, furniture and fixtures | |||||||||||
Construction in progress | |||||||||||
Accumulated depreciation | ( | ( | |||||||||
$ | $ | ||||||||||
Accrued expenses and other current liabilities: | |||||||||||
Accrued customer obligations (2) | $ | $ | |||||||||
Wages and benefits | |||||||||||
Dividends payable | |||||||||||
Commissions and professional fees | |||||||||||
Severance | |||||||||||
Other | |||||||||||
$ | $ |
(in thousands) | February 22, 2023 | ||||
Cash and cash equivalents | $ | ||||
Account and other receivables, net | |||||
Inventory | |||||
Property, plant and equipment, net | |||||
Right-of-use assets | |||||
Other assets | |||||
Goodwill | |||||
Intangible assets | |||||
Accounts and other payables | ( | ||||
Accrued expenses and other liabilities | ( | ||||
Contract liabilities | ( | ||||
Lease liability | ( | ||||
Deferred tax liabilities | ( | ||||
Total purchase price | $ |
(in thousands) | Fair Value | Useful Lives | ||||||
Developed technology(1) | $ | |||||||
Customer relationships(2) | ||||||||
In-process research and development (“IPR&D”)(3) | N.A. | |||||||
Patents(3) | ||||||||
Order Backlog(4) | ||||||||
Total identifiable intangible assets | $ |
(in thousands) | Capital Equipment | APS | Total | |||||||||||||||||
Balance at October 1, 2022 | $ | $ | $ | |||||||||||||||||
Acquired in business combination | — | $ | ||||||||||||||||||
Other | $ | |||||||||||||||||||
Balance at April 1, 2023 | $ | $ | $ | |||||||||||||||||
As of | Average estimated | ||||||||||||||||
(dollar amounts in thousands) | April 1, 2023 | October 1, 2022 | useful lives (in years) | ||||||||||||||
Developed technology | $ | $ | |||||||||||||||
Accumulated amortization | ( | ( | |||||||||||||||
Net developed technology | $ | $ | |||||||||||||||
Customer relationships | $ | $ | |||||||||||||||
Accumulated amortization | ( | ( | |||||||||||||||
Net customer relationships | $ | $ | |||||||||||||||
In-process research and development | $ | $ | N.A | ||||||||||||||
Net in-process research and development | $ | $ | |||||||||||||||
Trade and brand name | $ | $ | |||||||||||||||
Accumulated amortization | ( | ( | |||||||||||||||
Net trade and brand name | |||||||||||||||||
Other intangible assets | $ | $ | |||||||||||||||
Accumulated amortization | ( | ( | |||||||||||||||
Net other intangible assets | $ | $ | |||||||||||||||
$ | $ |
As of | |||||
(in thousands) | April 1, 2023 | ||||
Remaining fiscal 2023 | $ | ||||
Fiscal 2024 | |||||
Fiscal 2025 | |||||
Fiscal 2026 | |||||
Fiscal 2027 | |||||
Thereafter | |||||
Total amortization expense | $ |
(in thousands) | Amortized Cost | Unrealized Gains | Unrealized Losses | Estimated Fair Value | |||||||||||||||||||
Current assets: | |||||||||||||||||||||||
Cash | $ | $ | $ | $ | |||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||
Money market funds (1) | ( | ||||||||||||||||||||||
Time deposits (2) | |||||||||||||||||||||||
Total cash and cash equivalents | $ | $ | $ | ( | $ | ||||||||||||||||||
Short-term investments: | |||||||||||||||||||||||
Time deposits (2) | |||||||||||||||||||||||
Total short-term investments | $ | $ | $ | $ | |||||||||||||||||||
Total cash, cash equivalents and short-term investments | $ | $ | $ | ( | $ |
(in thousands) | Amortized Cost | Unrealized Gains | Unrealized Losses | Estimated Fair Value | |||||||||||||||||||
Current assets: | |||||||||||||||||||||||
Cash | $ | $ | $ | $ | |||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||
Money market funds (1) | ( | ||||||||||||||||||||||
Time deposits (2) | |||||||||||||||||||||||
Total cash and cash equivalents | $ | $ | $ | ( | $ | ||||||||||||||||||
Short-term investments: | |||||||||||||||||||||||
Time deposits (2) | |||||||||||||||||||||||
Total short-term investments | $ | $ | $ | $ | |||||||||||||||||||
Total cash, cash equivalents and short-term investments | $ | $ | $ | ( | $ |
As of | |||||||||||
(in thousands) | April 1, 2023 | October 1, 2022 | |||||||||
Non-marketable equity securities | $ | $ | |||||||||
As of | |||||||||||||||||||||||
April 1, 2023 | October 1, 2022 | ||||||||||||||||||||||
(in thousands) | Notional Amount | Fair Value Asset Derivatives(1) | Notional Amount | Fair Value Liability Derivatives(2) | |||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||
Foreign exchange forward contracts (3) | $ | $ | $ | $ | ( | ||||||||||||||||||
Total derivatives | $ | $ | $ | $ | ( |
Three months ended | Six months ended | |||||||||||||||||||||||||
(in thousands) | April 1, 2023 | April 2, 2022 | April 1, 2023 | April 2, 2022 | ||||||||||||||||||||||
Foreign exchange forward contract in cash flow hedging relationships: | ||||||||||||||||||||||||||
Net gain/(loss) recognized in OCI, net of tax (1) | $ | $ | ( | $ | $ | |||||||||||||||||||||
Net gain/(loss) reclassified from accumulated OCI into income, net of tax (2) | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||||||||
(in thousands) | April 1, 2023 | April 2, 2022 | April 1, 2023 | April 2, 2022 | |||||||||||||||||||
Operating lease expense (1) | $ | $ | $ | $ | |||||||||||||||||||
Six months ended | |||||||||||
(in thousands) | April 1, 2023 | April 2, 2022 | |||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
Operating cash outflows from operating leases | $ | $ | |||||||||
As of | |||||||||||
April 1, 2023 | October 1, 2022 | ||||||||||
Operating leases: | |||||||||||
Weighted-average remaining lease term (in years): | |||||||||||
Weighted-average discount rate: | % | % | |||||||||
As of | |||||
(in thousands) | April 1, 2023 | ||||
Remaining fiscal 2023 | $ | ||||
Fiscal 2024 | |||||
Fiscal 2025 | |||||
Fiscal 2026 | |||||
Fiscal 2027 | |||||
Thereafter | |||||
Total minimum lease payments | $ | ||||
Less: Interest | $ | ||||
Present value of lease obligations | $ | ||||
Less: Current portion | $ | ||||
Long-term portion of lease obligations | $ | ||||
Three months ended | Six months ended | ||||||||||||||||||||||
(in thousands) | April 1, 2023 | April 2, 2022 | April 1, 2023 | April 2, 2022 | |||||||||||||||||||
Cash | $ | $ | $ | $ |
As of | |||||||||||
(in thousands) | April 1, 2023 | October 1, 2022 | |||||||||
Loss from foreign currency translation adjustments | $ | ( | $ | ( | |||||||
Unrecognized actuarial loss on pension plan, net of tax | ( | ( | |||||||||
Unrealized gain/(loss) on hedging | ( | ||||||||||
Accumulated other comprehensive loss | $ | ( | $ | ( |
Three months ended | Six months ended | ||||||||||||||||||||||
(shares in thousands) | April 1, 2023 | April 2, 2022 | April 1, 2023 | April 2, 2022 | |||||||||||||||||||
Time-based RSUs | |||||||||||||||||||||||
Relative TSR PSUs | |||||||||||||||||||||||
Growth PSUs | |||||||||||||||||||||||
Common stock | |||||||||||||||||||||||
Equity-based compensation in shares |
Three months ended | Six months ended | ||||||||||||||||||||||
(in thousands) | April 1, 2023 | April 2, 2022 | April 1, 2023 | April 2, 2022 | |||||||||||||||||||
Cost of sales | $ | $ | $ | $ | |||||||||||||||||||
Selling, general and administrative | |||||||||||||||||||||||
Research and development | |||||||||||||||||||||||
Total equity-based compensation expense | $ | $ | $ | $ |
Three months ended | Six months ended | ||||||||||||||||||||||
(in thousands) | April 1, 2023 | April 2, 2022 | April 1, 2023 | April 2, 2022 | |||||||||||||||||||
Time-based RSUs | $ | $ | $ | $ | |||||||||||||||||||
Relative TSR PSUs | |||||||||||||||||||||||
Growth PSUs | |||||||||||||||||||||||
Common stock | |||||||||||||||||||||||
Total equity-based compensation expense | $ | $ | $ | $ | |||||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||||||||
(in thousands) | April 1, 2023 | April 2, 2022 | April 1, 2023 | April 2, 2022 | |||||||||||||||||||
Contract assets, beginning of period | $ | $ | $ | $ | |||||||||||||||||||
Additions | |||||||||||||||||||||||
Contract assets, end of period | $ | $ | $ | $ |
Three months ended | Six months ended | ||||||||||||||||||||||
(in thousands) | April 1, 2023 | April 2, 2022 | April 1, 2023 | April 2, 2022 | |||||||||||||||||||
Contract liabilities, beginning of period | $ | $ | $ | $ | |||||||||||||||||||
Revenue recognized | ( | ( | ( | ( | |||||||||||||||||||
Additions | |||||||||||||||||||||||
Contract liabilities, end of period | $ | $ | $ | $ |
Three months ended | |||||||||||||||||||||||
(in thousands, except per share data) | April 1, 2023 | April 2, 2022 | |||||||||||||||||||||
Basic | Diluted | Basic | Diluted | ||||||||||||||||||||
NUMERATOR: | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
DENOMINATOR: | |||||||||||||||||||||||
Weighted average shares outstanding - Basic | |||||||||||||||||||||||
Dilutive effect of Equity Plans | |||||||||||||||||||||||
Weighted average shares outstanding - Diluted | |||||||||||||||||||||||
EPS: | |||||||||||||||||||||||
Net income per share - Basic | $ | $ | $ | $ | |||||||||||||||||||
Effect of dilutive shares | ( | ( | |||||||||||||||||||||
Net income per share - Diluted | $ | $ | |||||||||||||||||||||
Anti-dilutive shares(1) |
Six months ended | |||||||||||||||||||||||
(in thousands, except per share data) | April 1, 2023 | April 2, 2022 | |||||||||||||||||||||
Basic | Diluted | Basic | Diluted | ||||||||||||||||||||
NUMERATOR: | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
DENOMINATOR: | |||||||||||||||||||||||
Weighted average shares outstanding - Basic | |||||||||||||||||||||||
Dilutive effect of Equity Plans | |||||||||||||||||||||||
Weighted average shares outstanding - Diluted | |||||||||||||||||||||||
EPS: | |||||||||||||||||||||||
Net income per share - Basic | $ | $ | $ | $ | |||||||||||||||||||
Effect of dilutive shares | ( | ( | |||||||||||||||||||||
Net income per share - Diluted | $ | $ | |||||||||||||||||||||
Anti-dilutive shares(1) | |||||||||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||||||||
(dollar amounts in thousands) | April 1, 2023 | April 2, 2022 | April 1, 2023 | April 2, 2022 | |||||||||||||||||||
Provision for income taxes | $ | $ | $ | $ | |||||||||||||||||||
Effective tax rate | % | % | % | % |
Three months ended | Six months ended | ||||||||||||||||||||||
(in thousands) | April 1, 2023 | April 2, 2022 | April 1, 2023 | April 2, 2022 | |||||||||||||||||||
Net revenue: | |||||||||||||||||||||||
Capital Equipment | $ | $ | $ | $ | |||||||||||||||||||
APS | |||||||||||||||||||||||
Net revenue | |||||||||||||||||||||||
Income from operations: | |||||||||||||||||||||||
Capital Equipment | |||||||||||||||||||||||
APS | |||||||||||||||||||||||
Income from operations | $ | $ | $ | $ |
Three months ended | Six months ended | ||||||||||||||||||||||
(in thousands) | April 1, 2023 | April 2, 2022 | April 1, 2023 | April 2, 2022 | |||||||||||||||||||
General Semiconductor | $ | $ | $ | $ | |||||||||||||||||||
Automotive & Industrial | |||||||||||||||||||||||
LED | |||||||||||||||||||||||
Memory | |||||||||||||||||||||||
Total Capital Equipment revenue | $ | $ | $ | $ |
Three months ended | Six months ended | ||||||||||||||||||||||
(in thousands) | April 1, 2023 | April 2, 2022 | April 1, 2023 | April 2, 2022 | |||||||||||||||||||
Capital expenditures: | |||||||||||||||||||||||
Capital Equipment | $ | $ | $ | $ | |||||||||||||||||||
APS | |||||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||
Depreciation expense: | |||||||||||||||||||||||
Capital Equipment | $ | $ | $ | $ | |||||||||||||||||||
APS | |||||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||
Amortization expense: | |||||||||||||||||||||||
Capital Equipment | $ | $ | $ | $ | |||||||||||||||||||
APS | |||||||||||||||||||||||
$ | $ | $ | $ |
Three months ended | Six months ended | ||||||||||||||||||||||
(in thousands) | April 1, 2023 | April 2, 2022 | April 1, 2023 | April 2, 2022 | |||||||||||||||||||
Reserve for warranty, beginning of period | $ | $ | $ | $ | |||||||||||||||||||
Provision for warranty | |||||||||||||||||||||||
Utilization of reserve | ( | ( | ( | ( | |||||||||||||||||||
Reserve for warranty, end of period | $ | $ | $ | $ |
Payments due by fiscal year | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | Total | 2023 | 2024 | 2025 | 2026 | 2027 | thereafter | ||||||||||||||||||||||||||||||||||
Inventory purchase obligation (1) | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Six months ended | |||||||||||
April 1, 2023 | April 2, 2022 | ||||||||||
First Technology China Ltd. | % | * | |||||||||
As of | |||||||||||
April 1, 2023 | April 2, 2022 | ||||||||||
Intel Corporation | % | * | |||||||||
Tianshui Huatian Technology Co., Ltd. | * | % | |||||||||
Haoseng Industrial Co., Ltd. (1) | * | % | |||||||||
Three months ended | |||||||||||||||||||||||
(dollar amounts in thousands) | April 1, 2023 | April 2, 2022 | $ Change | % Change | |||||||||||||||||||
Net revenue | $ | 173,021 | $ | 384,282 | $ | (211,261) | (55.0) | % | |||||||||||||||
Cost of sales | 88,929 | 182,572 | (93,643) | (51.3) | % | ||||||||||||||||||
Gross profit | 84,092 | 201,710 | (117,618) | (58.3) | % | ||||||||||||||||||
Selling, general and administrative | 35,464 | 35,088 | 376 | 1.1 | % | ||||||||||||||||||
Research and development | 35,999 | 37,281 | (1,282) | (3.4) | % | ||||||||||||||||||
Operating expenses | 71,463 | 72,369 | (906) | (1.3) | % | ||||||||||||||||||
Income from operations | $ | 12,629 | $ | 129,341 | $ | (116,712) | (90.2) | % |
Six months ended | |||||||||||||||||||||||
(dollar amounts in thousands) | April 1, 2023 | April 2, 2022 | $ Change | % Change | |||||||||||||||||||
Net revenue | $ | 349,254 | $ | 845,170 | $ | (495,916) | (58.7) | % | |||||||||||||||
Cost of sales | 176,456 | 420,222 | (243,766) | (58.0) | % | ||||||||||||||||||
Gross profit | 172,798 | 424,948 | (252,150) | (59.3) | % | ||||||||||||||||||
Selling, general and administrative | 77,840 | 74,047 | 3,793 | 5.1 | % | ||||||||||||||||||
Research and development | 70,507 | 70,450 | 57 | 0.1 | % | ||||||||||||||||||
Operating expenses | 148,347 | 144,497 | 3,850 | 2.7 | % | ||||||||||||||||||
Income from operations | $ | 24,451 | $ | 280,451 | $ | (256,000) | (91.3) | % |
Three months ended | |||||||||||||||||||||||||||||||||||
(dollar amounts in thousands) | April 1, 2023 | April 2, 2022 | $ Change | % Change | |||||||||||||||||||||||||||||||
Net Revenue | % of total net revenue | Net Revenue | % of total net revenue | ||||||||||||||||||||||||||||||||
Capital Equipment | $ | 133,727 | 77.3 | % | $ | 333,909 | 86.9 | % | $ | (200,182) | (60.0) | % | |||||||||||||||||||||||
APS | 39,294 | 22.7 | % | 50,373 | 13.1 | % | (11,079) | (22.0) | % | ||||||||||||||||||||||||||
Total net revenue | $ | 173,021 | 100.0 | % | $ | 384,282 | 100.0 | % | $ | (211,261) | (55.0) | % |
Six months ended | |||||||||||||||||||||||||||||||||||
(dollar amounts in thousands) | April 1, 2023 | April 2, 2022 | $ Change | % Change | |||||||||||||||||||||||||||||||
Net Revenue | % of total net revenue | Net Revenue | % of total net revenue | ||||||||||||||||||||||||||||||||
Capital Equipment | $ | 269,099 | 77.0 | % | $ | 742,437 | 87.8 | % | $ | (473,338) | (63.8) | % | |||||||||||||||||||||||
APS | 80,155 | 23.0 | % | 102,733 | 12.2 | % | (22,578) | (22.0) | % | ||||||||||||||||||||||||||
Total net revenue | $ | 349,254 | 100.0 | % | $ | 845,170 | 100.0 | % | $ | (495,916) | (58.7) | % | |||||||||||||||||||||||
Three months ended | Basis Point | ||||||||||||||||
April 1, 2023 | April 2, 2022 | Change | |||||||||||||||
Capital Equipment | 46.0 | % | 51.2 | % | (520) | ||||||||||||
APS | 57.6 | % | 61.2 | % | (360) | ||||||||||||
Total gross profit margin | 48.6 | % | 52.5 | % | (390) |
Six months ended | Basis Point | ||||||||||||||||
April 1, 2023 | April 2, 2022 | Change | |||||||||||||||
Capital Equipment | 47.4 | % | 48.8 | % | (140) | ||||||||||||
APS | 56.4 | % | 60.8 | % | (440) | ||||||||||||
Total gross profit margin | 49.5 | % | 50.3 | % | (80) | ||||||||||||
Three months ended | |||||||||||||||||||||||
(dollar amounts in thousands) | April 1, 2023 | April 2, 2022 | $ Change | % Change | |||||||||||||||||||
Selling, general & administrative | $ | 35,464 | $ | 35,088 | $ | 376 | 1.1 | % | |||||||||||||||
Research & development | 35,999 | 37,281 | (1,282) | (3.4) | % | ||||||||||||||||||
Total | $ | 71,463 | $ | 72,369 | $ | (906) | (1.3) | % |
Six months ended | |||||||||||||||||||||||
(dollar amounts in thousands) | April 1, 2023 | April 2, 2022 | $ Change | % Change | |||||||||||||||||||
Selling, general & administrative | $ | 77,840 | $ | 74,047 | $ | 3,793 | 5.1 | % | |||||||||||||||
Research & development | 70,507 | 70,450 | 57 | 0.1 | % | ||||||||||||||||||
Total | $ | 148,347 | $ | 144,497 | $ | 3,850 | 2.7 | % |
Three months ended | |||||||||||||||||||||||
(dollar amounts in thousands) | April 1, 2023 | April 2, 2022 | $ Change | % Change | |||||||||||||||||||
Capital Equipment | $ | 3,318 | $ | 111,200 | $ | (107,882) | (97.0) | % | |||||||||||||||
APS | 9,311 | 18,141 | (8,830) | (48.7) | % | ||||||||||||||||||
Total income from operations | $ | 12,629 | $ | 129,341 | $ | (116,712) | (90.2) | % |
Six months ended | |||||||||||||||||||||||
(dollar amounts in thousands) | April 1, 2023 | April 2, 2022 | $ Change | % Change | |||||||||||||||||||
Capital Equipment | $ | 7,190 | $ | 243,219 | $ | (236,029) | (97.0) | % | |||||||||||||||
APS | 17,261 | 37,232 | (19,971) | (53.6) | % | ||||||||||||||||||
Total income from operations | $ | 24,451 | $ | 280,451 | $ | (256,000) | (91.3) | % |
Three months ended | |||||||||||||||||||||||
(dollar amounts in thousands) | April 1, 2023 | April 2, 2022 | $ Change | % Change | |||||||||||||||||||
Interest income | $ | 8,000 | $ | 470 | $ | 7,530 | 1,602.1 | % | |||||||||||||||
Interest expense | $ | (32) | $ | (97) | $ | 65 | (67.0) | % | |||||||||||||||
Six months ended | |||||||||||||||||||||||
(dollar amounts in thousands) | April 1, 2023 | April 2, 2022 | $ Change | % Change | |||||||||||||||||||
Interest income | $ | 14,559 | $ | 941 | $ | 13,618 | 1,447.2 | % | |||||||||||||||
Interest expense | $ | (66) | $ | (137) | $ | 71 | (51.8) | % | |||||||||||||||
Three months ended | Six months ended | ||||||||||||||||||||||||||||||||||
(dollar amounts in thousands) | April 1, 2023 | April 2, 2022 | Change | April 1, 2023 | April 2, 2022 | Change | |||||||||||||||||||||||||||||
Provision for income taxes | $ | 5,556 | $ | 13,713 | $ | (8,157) | $ | 9,314 | $ | 31,648 | $ | (22,334) | |||||||||||||||||||||||
Effective tax rate | 27.0 | % | 10.6 | % | 16.4 | % | 23.9 | % | 11.3 | % | 12.6 | % |
As of | |||||||||||||||||
(dollar amounts in thousands) | April 1, 2023 | October 1, 2022 | $ Change | ||||||||||||||
Cash and cash equivalents | $ | 389,102 | $ | 555,537 | $ | (166,435) | |||||||||||
Short-term investments | 345,000 | 220,000 | 125,000 | ||||||||||||||
Total cash, cash equivalents, and short-term investments | $ | 734,102 | $ | 775,537 | $ | (41,435) | |||||||||||
Percentage of total assets | 48.2% | 48.8% |
Six months ended | |||||||||||
(in thousands) | April 1, 2023 | April 2, 2022 | |||||||||
Net cash provided by operating activities | $ | 86,936 | $ | 169,009 | |||||||
Net cash (used in)/provided by investing activities | (186,197) | 141,461 | |||||||||
Net cash used in financing activities | (72,911) | (211,064) | |||||||||
Effect of exchange rate changes on cash and cash equivalents | 5,737 | (1,741) | |||||||||
Changes in cash and cash equivalents | $ | (166,435) | $ | 97,665 | |||||||
Cash and cash equivalents, beginning of period | 555,537 | 362,788 | |||||||||
Cash and cash equivalents, end of period | $ | 389,102 | $ | 460,453 |
Payments due in | |||||||||||||||||||||||||||||
(in thousands) | Total | Less than 1 year | 1 - 3 years | 3 - 5 years | More than 5 years | ||||||||||||||||||||||||
Inventory purchase obligations (1) | $ | 233,697 | $ | 54,215 | $ | 179,482 | $ | — | $ | — | |||||||||||||||||||
U.S. one-time transition tax payable (2) (reflected on our Consolidated Condensed Balance Sheets) | $ | 47,686 | 12,606 | 35,080 | — | — | |||||||||||||||||||||||
Total | $ | 281,383 | $ | 66,821 | $ | 214,562 | $ | — | $ | — |
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs(1) | ||||||||||||||||||||||
January 1, 2023 to January 28, 2023 | 66 | $ | 47.01 | 66 | $ | 200.7 | ||||||||||||||||||||
January 29, 2023 to March 4, 2023 | 14 | $ | 53.19 | 14 | $ | 199.9 | ||||||||||||||||||||
March 5, 2023 to April 1, 2023 | 22 | $ | 52.14 | 22 | $ | 198.8 | ||||||||||||||||||||
For the three months ended April 1, 2023 | 102 | 102 |
Exhibit No. | Description | |||||||
3.1 | ||||||||
3.2 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1* | ||||||||
32.2* | ||||||||
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 and contained in Exhibit 101.INS). | |||||||
* | This exhibit shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of that Section. Such exhibit shall not be deemed incorporated into any filing under the Securities Act or the Exchange Act. |
KULICKE AND SOFFA INDUSTRIES, INC. | ||||||||
Date: May 4, 2023 | By: | /s/ LESTER WONG | ||||||
Lester Wong | ||||||||
Executive Vice President and Chief Financial Officer (principal financial officer and principal accounting officer) |
Date: May 4, 2023 | By: | /s/ FUSEN CHEN | ||||||
Fusen Chen | ||||||||
President and Chief Executive Officer |
Date: May 4, 2023 | By: | /s/ LESTER WONG | ||||||
Lester Wong | ||||||||
Executive Vice President and Chief Financial Officer |
Date: May 4, 2023 | By: | /s/ FUSEN CHEN | ||||||
Fusen Chen | ||||||||
President and Chief Executive Officer |
Date: May 4, 2023 | By: | /s/ LESTER WONG | ||||||
Lester Wong | ||||||||
Executive Vice President and Chief Financial Officer |
CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Apr. 01, 2023 |
Oct. 01, 2022 |
---|---|---|
Consolidated Balance Sheets Parenthetical [Abstract] | ||
Allowance for doubtful accounts and notes receivable | $ 0 | $ 0 |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares, Issued | 85,364,000 | 85,364,000 |
Common Stock, Shares, Outstanding | 56,653,000 | 57,128,000 |
Treasury Stock, Shares | 28,710,000 | 28,237,000 |
Preferred Stock, Shares Issued | 0 | 0 |
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Apr. 01, 2023 |
Apr. 02, 2022 |
Apr. 01, 2023 |
Apr. 02, 2022 |
|
Income Statement [Abstract] | ||||
Revenues | $ 173,021 | $ 384,282 | $ 349,254 | $ 845,170 |
Cost of sales | 88,929 | 182,572 | 176,456 | 420,222 |
Gross profit | 84,092 | 201,710 | 172,798 | 424,948 |
Selling, general and administrative | 35,464 | 35,088 | 77,840 | 74,047 |
Research and development | 35,999 | 37,281 | 70,507 | 70,450 |
Operating expenses | 71,463 | 72,369 | 148,347 | 144,497 |
Income from operations | 12,629 | 129,341 | 24,451 | 280,451 |
Interest income | 8,000 | 470 | 14,559 | 941 |
Interest expense | (32) | (97) | (66) | (137) |
Income before income taxes | 20,597 | 129,714 | 38,944 | 281,255 |
Provision for income taxes | 5,556 | 13,713 | 9,314 | 31,648 |
Net income | $ 15,041 | $ 116,001 | $ 29,630 | $ 249,607 |
Net income per share: | ||||
Basic (in dollars per share) | $ 0.27 | $ 1.89 | $ 0.52 | $ 4.03 |
Diluted (in dollars per share) | $ 0.26 | $ 1.86 | $ 0.51 | $ 3.97 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 56,684 | 61,482 | 56,868 | 61,934 |
Diluted (in shares) | 57,577 | 62,435 | 57,739 | 62,907 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Apr. 01, 2023 |
Apr. 02, 2022 |
Apr. 01, 2023 |
Apr. 02, 2022 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 15,041 | $ 116,001 | $ 29,630 | $ 249,607 |
Other comprehensive income: | ||||
Foreign currency translation adjustment | 1,654 | (4,351) | 15,973 | (6,016) |
Unrecognized actuarial (gain)/loss on pension plan, net of tax | (9) | 49 | (56) | (19) |
Foreign currency translation and pension plan, net of tax | 1,645 | (4,302) | 15,917 | (6,035) |
Derivatives designated as hedging instruments: | ||||
Unrealized gain/(loss) on derivative instruments, net of tax | 737 | (143) | 3,830 | 65 |
Reclassification adjustment for (gain)/loss on derivative instruments recognized, net of tax | 578 | (87) | 298 | (623) |
Net increase/(decrease) from derivatives designated as hedging instruments, net of tax | 159 | (56) | 3,532 | 688 |
Other comprehensive income | 1,804 | (4,358) | 19,449 | (5,347) |
Comprehensive income | $ 16,845 | $ 111,643 | $ 49,079 | $ 244,260 |
BASIS OF PRESENTATION |
6 Months Ended |
---|---|
Apr. 01, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | 1. BASIS OF PRESENTATION These consolidated condensed financial statements include the accounts of Kulicke and Soffa Industries, Inc. and its subsidiaries (“we,” “us,” “our,” or the “Company”) with appropriate elimination of intercompany balances and transactions. The interim consolidated condensed financial statements are unaudited and, in management’s opinion, include all adjustments (consisting only of normal and recurring adjustments) necessary for a fair statement of results for these interim periods. The interim consolidated condensed financial statements do not include all of the information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended October 1, 2022, filed with the Securities and Exchange Commission, which includes the Consolidated Balance Sheets as of October 1, 2022 and October 2, 2021, and the related Consolidated Statements of Operations, Statements of Comprehensive Income, Changes in Shareholders’ Equity and Cash Flows for each of the years in the three-year period ended October 1, 2022. The results of operations for any interim period are not necessarily indicative of the results of operations for any other interim period or for a full year. Fiscal Year Each of the Company’s first three fiscal quarters end on the Saturday that is 13 weeks after the end of the immediately preceding fiscal quarter. The fourth quarter of each fiscal year ends on the Saturday closest to September 30. Fiscal 2023 quarters end on December 31, 2022, April 1, 2023, July 1, 2023 and September 30, 2023. In fiscal years consisting of 53 weeks, the fourth quarter will consist of 14 weeks. Fiscal 2022 quarters ended on January 1, 2022, April 2, 2022, July 2, 2022 and October 1, 2022. Nature of Business The Company designs, manufactures and sells capital equipment and tools as well as services, maintains, repairs and upgrades equipment, all used to assemble semiconductor devices. The Company’s operating results depend upon the capital and operating expenditures of semiconductor device manufacturers, integrated device manufacturers (“IDMs”), outsourced semiconductor assembly and test providers (“OSATs”), and other electronics manufacturers including automotive electronics suppliers worldwide which, in turn, depend on the current and anticipated market demand for semiconductors and products utilizing semiconductors. The semiconductor industry is highly volatile and experiences downturns and slowdowns which can have a severe negative effect on the semiconductor industry’s demand for semiconductor capital equipment, including assembly equipment manufactured and sold by the Company and, to a lesser extent, tools, solutions and services, including those sold or provided by the Company. These downturns and slowdowns have in the past adversely affected the Company’s operating results. The Company believes such volatility will continue to characterize the industry and the Company’s operations in the future. Use of Estimates The preparation of consolidated condensed financial statements requires management to make assumptions, estimates and judgments that affect the reported amounts of assets and liabilities, net revenue and expenses during the reporting periods, and disclosures of contingent assets and liabilities as of the date of the consolidated condensed financial statements. On an ongoing basis, management evaluates estimates, including but not limited to, those related to accounts receivable, reserves for excess and obsolete inventory, carrying value and lives of fixed assets, goodwill and intangible assets, the valuation estimates and assessment of impairment and observable price adjustments, income taxes, equity-based compensation expense, and warranties. Management bases its estimates on historical experience and on various other assumptions believed to be reasonable. As a result, management makes judgments regarding the carrying values of the Company’s assets and liabilities that are not readily apparent from other sources. Authoritative pronouncements, historical experience and assumptions are used as the basis for making estimates, and on an ongoing basis, management evaluates these estimates. Actual results may differ from these estimates. Due to the prolonged ongoing effects of the coronavirus (“COVID-19”) pandemic and macroeconomic headwinds, there has been uncertainty and disruption in the global economy and financial markets. The Company is not aware of any specific event or circumstance that would require an update to its estimates or judgments or a revision of the carrying value of its assets or liabilities as of April 1, 2023. While there was no material impact to our consolidated condensed financial statements as of and for the quarter ended April 1, 2023, these estimates may change, as new events occur and additional information is obtained, as well as other factors related to COVID-19 and macroeconomic headwinds that could materially impact our consolidated condensed financial statements in future reporting periods. Significant Accounting Policies There have been no material changes to our significant accounting policies summarized in Note 1 “Basis of Presentation” to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended October 1, 2022. Recent Accounting Pronouncements Government Assistance In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosure by Business Entities about Government Assistance which aims at increasing the transparency of government assistance received by most business entities. The standard requires business entities to make annual disclosures about the nature of the transactions and the related accounting policy used to account for the transactions, the line items and applicable amounts on the balance sheet and income statement that are affected by the transactions, and significant terms and conditions of the transactions, including commitments and contingencies. If an entity omits any required disclosures because it is legally prohibited, it must describe the general nature of the information and indicate that the omitted disclosures are legally prohibited from being disclosed. This ASU is effective for fiscal years beginning after December 15, 2021, which for the Company is in fiscal 2023. The Company will include disclosures for material items with the filing of its Annual Report on Form 10-K for the year ending on September 30, 2023. Business Combinations In October 2021, the FASB issued ASU 2021-08 Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with Topic 606 Revenue from Contracts with Customers. The amendments should be applied prospectively to business combinations occurring on or after the effective date of the amendments with early adoption permitted. We elected to early adopt this ASU in fiscal year 2023. The adoption of this ASU did not have a material impact on our consolidated condensed financial statements.
|
BALANCE SHEET COMPONENTS |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE SHEET COMPONENTS | 2. BALANCE SHEET COMPONENTS The following tables reflect the components of significant balance sheet accounts as of April 1, 2023 and October 1, 2022:
(1)All short-term investments were classified as available-for-sale and the fair value approximates cost basis. The Company did not recognize any realized gains or losses on the sale of investments during the three and six months ended April 1, 2023 and April 2, 2022. (2)Represents customer advance payments, customer credit program, accrued warranty expense and accrued retrofit obligations.
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BUSINESS COMBINATION |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BUSINESS COMBINATION | 3. BUSINESS COMBINATION Acquisition of Advanced Jet Automation Co., Ltd. (“AJA”) On September 8, 2022, the Company through one of its subsidiaries, Kulicke and Soffa Luxembourg S.À R.L, entered into a definitive agreement (the “Definitive Agreement”) for the acquisition of Advanced Jet Automation Co., Ltd. (“AJA”), a technology company headquartered in Taiwan. Subsequent to the acquisition, AJA has been renamed to Kulicke and Soffa Hi-Tech Co., Ltd.. On February 22, 2023 (the “Closing Date”), pursuant to the Definitive Agreement, the Company completed its acquisition of AJA, including the material business and assets formerly owned by AJA’s affiliate, Samurai Spirit Inc., a leading developer and manufacturer of high-precision micro-dispensing equipment and solutions in Taiwan. AJA became a wholly-owned subsidiary of the Company and will operate as a business unit (“dispensing business unit”), which is classified as a new operating segment within the Capital Equipment reportable segment. The acquisition broadens the Company’s existing semiconductor, electronic assembly and advanced display portfolio, increasing opportunities across several exciting growth areas including mini and micro LED, which support both backlighting and direct-emissive approaches. The purchase price consisted of $38.1 million in cash paid at closing (the “Purchase Price”) and additional potential earn-out payments based on certain revenue and earnings before interest, tax, depreciation and amortization (“EBITDA”) benchmarks established for the dispensing business unit. As of the Closing Date, the Company held $4.0 million in escrow and will continue to hold such sums for a period of twenty-four (24) months from the Closing Date, as security pending the completion of Ruo Chuan Inc.’s obligations as the seller under the Definitive Agreement. The Company has estimated the preliminary fair value of acquired assets and liabilities as of the date of acquisition based on current information available. The valuation of these tangible and identifiable intangible assets and liabilities is subject to further management review and may change materially between the preliminary allocation and end of the purchase price allocation period of February 21, 2024. Any changes in these estimates may have a material impact on our Consolidated Condensed Statements of Operations or Consolidated Condensed Balance Sheets. The acquisition of AJA was accounted for in accordance with ASC No. 805, Business Combinations, using the acquisition method. The following table summarizes the allocation of the assets acquired and liabilities assumed based on the fair values as of the Closing Date:
Excluding inventory and property, plant and equipment, all other tangible net assets (liabilities) were valued at their respective carrying amounts, which the Company believes approximate their current fair values at the Closing Date. In connection with the acquisition of AJA, the Company recorded deferred tax liabilities primarily relating to the acquired intangible assets. Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired and includes the value of expected future cash flows of AJA from expected synergies with our other affiliates and other unidentifiable intangible assets. None of the goodwill recorded as part of the acquisition will be deductible for income tax purposes. The following table summarizes the fair value, useful life and valuation methodology of each identifiable intangible asset.
(1)The fair value of developed technology was determined using the Relief-from-Royalty Method under the income approach. (2)Customer relationships represent the fair value of the existing relationships using the Multi-Period Excess Earnings Method under the income approach. (3)The fair value of IPR&D and Patents were determined using the Replacement Cost Method, a form of the cost approach. (4)Order backlog represents primarily the fair value of purchase arrangements with customers using the Multi-Period Excess Earnings Method under the income approach. IPR&D is recorded as an indefinite-lived intangible asset and not amortized, but rather is reviewed for impairment on an annual basis or more frequently if indicators of impairment are present, until the project is completed, abandoned, or transferred to a third party. Developed technology, customer relationships, patents and order backlog are amortized using a straight-line method, representing the Company’s best estimate of the distribution of the economic value of the identifiable intangible assets. For the three and six months ended April 1, 2023, the acquired dispensing business unit contributed a net loss of $0.4 million. For the three and six months ended April 1, 2023, the Company incurred $0.3 million and $0.4 million of expenses related to the acquisition, respectively, which is included within selling, general and administrative expense in the Consolidated Condensed Statements of Operations. The acquisition did not result in material contributions to revenue and net income in the consolidated financial statements for the three and six months ended April 1, 2023. Additionally, pro forma financial information is not provided for consolidated revenue and net income as such amounts attributable to AJA were insignificant to the Company’s consolidated financial statements taken as a whole.
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GOODWILL AND INTANGIBLE ASSETS |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | 4. GOODWILL AND INTANGIBLE ASSETS Goodwill Intangible assets classified as goodwill are not amortized. The goodwill established in connection with our acquisitions represents the estimated future economic benefits arising from the assets we acquired that did not qualify to be identified and recognized individually. The goodwill also includes the value of expected future cash flows from the acquisitions, expected synergies with our other affiliates and other unidentifiable intangible assets. The Company performs an annual impairment test of its goodwill during the fourth quarter of each fiscal year, which coincides with the completion of its annual forecasting and refreshing of business outlook process. The Company performed its annual impairment test in the fourth quarter of fiscal 2022 and concluded that no impairment charge was required. Any future adverse changes in expected operating results and/or unfavorable changes in other economic factors used to estimate fair values could result in a non-cash impairment in the future. During the three and six months ended April 1, 2023, the Company reviewed qualitative factors to ascertain if a “triggering” event may have taken place that may have the effect of reducing the fair value of the reporting unit below its carrying value and concluded that no triggering event had occurred. While we have concluded that a triggering event did not occur during the quarter ended April 1, 2023, the prolonged ongoing effects of the COVID-19 pandemic and macroeconomic headwinds could impact the results of operations due to changes to assumptions utilized in the determination of the estimated fair values of the reporting units that could be significant enough to trigger an impairment. Net sales and earnings growth rates could be negatively impacted by reductions or changes in demand for our products. The discount rate utilized in our valuation model could also be impacted by changes in the underlying interest rates and risk premiums included in the determination of the cost of capital. The following table summarizes the Company’s recorded goodwill by reportable segments (refer to Note 15) as of April 1, 2023 and October 1, 2022:
During the quarter ended April 1, 2023, the Company recorded goodwill relating to the acquisition of AJA. For further information on the acquisition of AJA, please refer to Note 3. Intangible Assets Intangible assets with determinable lives are amortized over their estimated useful lives. The Company’s intangible assets consist primarily of developed technology, customer relationships, in-process research and development, and trade and brand names. The following table reflects net intangible assets as of April 1, 2023 and October 1, 2022:
The following table reflects estimated annual amortization expense related to intangible assets as of April 1, 2023:
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CASH, CASH EQUIVALENTS, RESTRICTED CASH AND SHORT-TERM INVESTMENTS |
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Cash and Cash Equivalents [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND SHORT-TERM INVESTMENTS | 5. CASH, CASH EQUIVALENTS, AND SHORT-TERM INVESTMENTS Cash equivalents consist of instruments with remaining maturities of three months or less at the date of purchase. In general, these investments are free of trading restrictions. Cash, cash equivalents, and short-term investments consisted of the following as of April 1, 2023:
(1)The fair value was determined using unadjusted prices in active, accessible markets for identical assets, and as such they were classified as Level 1 assets in the fair value hierarchy. (2)Fair value approximates cost basis. Cash, cash equivalents and short-term investments consisted of the following as of October 1, 2022:
(1)The fair value was determined using unadjusted prices in active, accessible markets for identical assets, and as such they were classified as Level 1 assets in the fair value hierarchy. (2)Fair value approximates cost basis.
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EQUITY INVESTMENTS |
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Equity Method Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
EQUITY INVESTMENTS | 6. EQUITY INVESTMENTSEquity investments consisted of the following as of April 1, 2023 and October 1, 2022:
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FAIR VALUE MEASUREMENTS |
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Apr. 01, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASURMENTS | 7. FAIR VALUE MEASUREMENTS Accounting standards establish three levels of inputs that may be used to measure fair value: quoted prices in active markets for identical assets or liabilities (referred to as Level 1), inputs other than Level 1 that are observable for the asset or liability either directly or indirectly (referred to as Level 2) and unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities (referred to as Level 3). Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis We measure certain financial assets and liabilities at fair value on a recurring basis. There were no transfers between fair value measurement levels during the three and six months ended April 1, 2023. Fair Value Measurements on a Nonrecurring Basis Our non-financial assets such as intangible assets and property, plant and equipment are carried at cost unless impairment is deemed to have occurred. Fair Value of Financial Instruments Amounts reported as accounts receivables, prepaid expenses and other current assets, accounts payable and accrued expenses approximate fair value.
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DERIVATIVES FINANCIAL INSTRUMENTS (Notes) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVES FINANCIAL INSTRUMENTS | 8. DERIVATIVE FINANCIAL INSTRUMENTS The Company’s international operations are exposed to changes in foreign exchange rates due to transactions denominated in currencies other than U.S. dollars. Most of the Company’s revenue and cost of materials are transacted in U.S. dollars. However, a significant amount of the Company’s operating expenses is denominated in local currencies, primarily in Singapore. The foreign currency exposure of our operating expenses is generally hedged with foreign exchange forward contracts. The Company’s foreign exchange risk management programs include using foreign exchange forward contracts with cash flow hedge accounting designation to hedge exposures to the variability in the U.S. dollar equivalent of forecasted non-U.S. dollar-denominated operating expenses. These instruments generally mature within twelve months. For these derivatives, we report the after-tax gain or loss from the effective portion of the hedge as a component of accumulated other comprehensive income (loss), and we reclassify it into earnings in the same period or periods in which the hedged transaction affects earnings and in the same line item on the Consolidated Condensed Statements of Operations as the impact of the hedged transaction. The fair value of derivative instruments on our Consolidated Condensed Balance Sheets as of April 1, 2023 and October 1, 2022 were as follows:
(1)The fair value of derivative assets is measured using level 2 fair value inputs and is included in prepaid expenses and other current assets on our Consolidated Condensed Balance Sheets. (2)The fair value of derivative liabilities is measured using level 2 fair value inputs and is included in accrued expenses and other current liabilities on our Consolidated Condensed Balance Sheets. (3)Hedged amounts expected to be recognized to income within the next twelve months. The effects of derivative instruments designated as cash flow hedges in our Consolidated Condensed Statements of Comprehensive Income for the three and six months ended April 1, 2023 and April 2, 2022 were as follows:
(1)Net change in the fair value of the effective portion classified in OCI. (2)Effective portion classified as selling, general and administrative expense.
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LEASES |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | 9. LEASES We have entered into various non-cancellable operating and finance lease agreements for certain of our offices, manufacturing, technology, sales support and service centers, equipment, and vehicles. We determine if an arrangement is a lease, or contains a lease, at inception and record the leases in our financial statements upon lease commencement, which is the date when the underlying asset is made available for use by the lessor. Our lease terms may include one or more options to extend the lease terms, for periods from one year to 20 years, when it is reasonably certain that we will exercise that option. As of April 1, 2023, there were four options to extend the lease which was recognized as a right-of-use (“ROU”) asset, or a lease liability. We have lease agreements with lease and non-lease components, and non-lease components are accounted for separately and not included in our leased assets and corresponding liabilities. We have elected not to present short-term leases on the Consolidated Condensed Balance Sheets as these leases have a lease term of 12 months or less at lease inception. Operating leases are included in operating ROU assets, current operating lease liabilities and non-current operating lease liabilities, and finance leases are included in property, plant and equipment, accrued expenses and other current liabilities, and other liabilities on the Consolidated Condensed Balance Sheets. As of April 1, 2023 and October 1, 2022, our finance leases are not material. The following table shows the components of lease expense:
(1)Operating lease expense includes short-term lease expense, which is immaterial for the three and six months ended April 1, 2023 and April 2, 2022. The following table shows the cash flows arising from lease transactions. Cash payments related to short-term leases are not included in the measurement of operating lease liabilities, and, as such, are excluded from the amounts below:
The following table shows the weighted-average lease terms and discount rates for operating leases:
Future lease payments, excluding short-term leases are detailed as follows:
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DEBT AND OTHER OBLIGATIONS DEBT AND OTHER OBLIGATIONS (Notes) |
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Apr. 01, 2023 | |
Debt Disclosure [Abstract] | |
Debt and Other Obligations | 10. DEBT AND OTHER OBLIGATIONS Bank Guarantees On November 22, 2013, the Company obtained a $5.0 million credit facility with Citibank in connection with the issuance of bank guarantees for operational purposes. As of April 1, 2023, the outstanding amount under this facility was $3.2 million. Credit Facilities On February 15, 2019, the Company entered into a Facility Letter and Overdraft Agreement (collectively, the “Facility Agreements”) with MUFG Bank, Ltd., Singapore Branch (the “Bank”). The Facility Agreements provide the Company and one of its subsidiaries with an overdraft facility of up to $150.0 million (the “Overdraft Facility”) for general corporate purposes. Amounts outstanding under the Overdraft Facility, including interest, are payable upon thirty days written demand by the Bank. Interest on the Overdraft Facility is calculated on a daily basis, and the applicable interest rate is calculated at the Secured Overnight Financing Rate (“SOFR”) plus a margin of 1.5% per annum. The Overdraft Facility is an unsecured facility per the terms of the Facility Agreements. The Facility Agreements contain customary non-financial covenants, including, without limitation, covenants that restrict the Company’s ability to sell or dispose of its assets, cease owning at least 51% of two of its subsidiaries (the “Subsidiaries”), or encumber its assets with material security interests (including any pledge of monies in the Subsidiaries' cash deposit account with the Bank). The Facility Agreements also contain typical events of default, including, without limitation, non-payment of financial obligations when due, cross defaults to other material indebtedness of the Company and any breach of a representation or warranty under the Facility Agreements. As of April 1, 2023, there were no outstanding amounts under the Overdraft Facility.
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SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHAREHOLDERS’ EQUITY AND EMPLOYEE BENEFIT PLANS | 11. SHAREHOLDERS’ EQUITY AND EMPLOYEE BENEFIT PLANS 401(k) Retirement Income Plans The Company has a 401(k) retirement plan (the “401(k) Plan”) for eligible U.S. employees. The 401(k) Plan allows for employee contributions and matching Company contributions from 4% to 6% based upon terms and conditions of the 401(k) Plan. The following table reflects the Company’s contributions to the 401(k) Plan during the three and six months ended April 1, 2023 and April 2, 2022:
Share Repurchase Program On August 15, 2017, the Company’s Board of Directors authorized a program (the “Program”) to repurchase up to $100 million of the Company’s common stock on or before August 1, 2020. In 2018, 2019 and 2020, the Board of Directors increased the share repurchase authorization under the Program to $200 million, $300 million, and $400 million, respectively. On March 3, 2022, the Board of Directors further increased the share repurchase authorization under the Program by an additional $400 million to $800 million, and extended its duration through August 1, 2025. The Company has entered into a written trading plan under Rule 10b5-1 of the Exchange Act to facilitate repurchases under the Program. The Program may be suspended or discontinued at any time and is funded using the Company’s available cash, cash equivalents and short-term investments. Under the Program, shares may be repurchased through open market and/or privately negotiated transactions at prices deemed appropriate by management. The timing and amount of repurchase transactions under the Program depend on market conditions as well as corporate and regulatory considerations. During the three and six months ended April 1, 2023, the Company repurchased a total of approximately 101.9 thousand and 1,156.2 thousand shares of common stock under the Program at a cost of approximately $5.0 million and $50.4 million, respectively. The stock repurchases were recorded in the periods they were delivered and accounted for as treasury stock in the Company’s Consolidated Condensed Balance Sheets. The Company records treasury stock purchases under the cost method using the first-in, first-out (FIFO) method. Upon re-issuance of treasury stock, amounts in excess of the acquisition cost are credited to additional paid-in capital. If the Company reissues treasury stock at an amount below its acquisition cost and additional paid-in capital associated with prior treasury stock transactions is insufficient to cover the difference between acquisition cost and the reissue price, this difference is recorded against retained earnings. As of April 1, 2023, our remaining stock repurchase authorization under the Program was approximately $198.8 million. Dividends On November 16, 2022, the Board of Directors declared a quarterly dividend of $0.19 per share of common stock. Dividends paid during the three and six months ended April 1, 2023 totaled $10.8 million and $20.5 million, respectively. The declaration of any future cash dividend is at the discretion of the Board of Directors and will depend on the Company’s financial condition, results of operations, capital requirements, business conditions and other factors, as well as a determination that such dividends are in the best interests of the Company’s shareholders. Accumulated Other Comprehensive Loss The following table reflects accumulated other comprehensive loss reflected on the Consolidated Condensed Balance Sheets as of April 1, 2023 and October 1, 2022:
Equity-Based Compensation The Company has a stockholder-approved equity-based compensation plan, the 2021 Omnibus Incentive Plan (the “Plan”) from which employees and directors receive grants. As of April 1, 2023, 2.5 million shares of common stock are available for grant to the Company’s employees and directors under the Plan. •Relative TSR Performance Share Units (“Relative TSR PSUs”) entitle the employee to receive common stock of the Company on the award vesting date, typically the third anniversary of the grant date (or as soon as administratively practicable if later), if market performance objectives which measure the relative total shareholder return (“TSR”) are attained. Relative TSR is calculated based upon the 90-calendar day average price at the end of the performance period of the Company’s stock as compared to specific peer companies that comprise the GICS (45301020) Semiconductor Index. TSR is measured for the Company and each peer company over a performance period, which is generally three years. Vesting percentages range from 0% to 200% of awards granted. The provisions of the Relative TSR PSUs are reflected in the grant date fair value of the award; therefore, compensation expense is recognized regardless of whether the market condition is ultimately satisfied. Compensation expense is reversed if the award is forfeited prior to the vesting date. •Revenue Growth Performance Share Units (“Growth PSUs”) entitle the employee to receive common stock of the Company on the award vesting date, typically the third anniversary of the grant date (or as soon as administratively practicable if later), based on organic revenue growth objectives and relative growth performance against named competitors as set by the Management Development and Compensation Committee (“MDCC”) of the Company’s Board of Directors. Organic revenue growth is calculated by averaging revenue growth (net of revenues from acquisitions) over a performance period, which is generally three years. Revenues from acquisitions will be included in the calculation after four fiscal quarters after acquisition. Any portion of the grant that does not meet the revenue growth objectives and relative growth performance is forfeited. Vesting percentages range from 0% to 200% of awards granted. •In general, Time-based Restricted Share Units (“Time-based RSUs”) awarded to employees vest ratably over a three-year period on the anniversary of the grant date provided the employee remains employed by the Company. Equity-based compensation expense recognized in the Consolidated Condensed Statements of Operations for the three and six months ended April 1, 2023 and April 2, 2022 was based upon awards ultimately expected to vest, with forfeiture accounted for when they occur. The following table reflects Time-based RSUs, Relative TSR PSUs, Growth PSUs and common stock granted during the three and six months ended April 1, 2023 and April 2, 2022:
The following table reflects total equity-based compensation expense, which includes Time-based RSUs, Relative TSR PSUs, Growth PSUs and common stock, included in the Consolidated Condensed Statements of Operations during the three and six months ended April 1, 2023 and April 2, 2022:
The following table reflects equity-based compensation expense, by type of award, for the three and six months ended April 1, 2023 and April 2, 2022:
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REVENUE AND CONTRACT BALANCES |
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REVENUE AND CONTRACT BALANCES | 12. REVENUE AND CONTRACT BALANCES The Company recognizes revenue when we satisfy performance obligations as evidenced by the transfer of control of our products or services to customers. In general, the Company generates revenue from product sales, either directly to customers or to distributors. In determining whether a contract exists, we evaluate the terms of the agreement, the relationship with the customer or distributor and their ability to pay. Service revenue is generally recognized over time as the services are performed. For the three and six months ended April 1, 2023, and April 2, 2022, the service revenue was not material. The Company reports revenue based on our reportable segments. The Company believes that reporting revenue on this basis provides information about how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. Please refer to Note 15: Segment Information, for disclosure of revenue by segment. Contract Balances Our contract assets relate to our rights to consideration for revenue with collection dependent on events other than the passage of time, such as the achievement of specified payment milestones. The contract assets will be transferred to net account receivables as our right to consideration for these contract assets become unconditional. Contracts assets are reported in the accompanying Consolidated Condensed Balance Sheets within prepaid expenses and other current assets. Our contract liabilities are primarily related to payments received in advance of satisfying performance obligations, and are reported in the accompanying Consolidated Condensed Balance Sheets within accrued expenses and other current liabilities. Contract liabilities increase as a result of receiving new advance payments from customers and decrease as revenue is recognized from product sales under advance payment arrangements upon satisfying the performance obligations. The following table shows the changes in contract asset balances during the three and six months ended April 1, 2023 and April 2, 2022:
The following table shows the changes in contract liability balances during the three and six months ended April 1, 2023 and April 2, 2022:
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EARNINGS PER SHARE |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE | 13. EARNINGS PER SHARE Basic income per share is calculated using the weighted average number of shares of common stock outstanding during the period. Restricted stock are included in the calculation of diluted earnings per share, except when their effect would be anti-dilutive. The following table reflects a reconciliation of the shares used in the basic and diluted net income per share computation for the three and six months ended April 1, 2023 and April 2, 2022:
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INCOME TAXES |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES | 14. INCOME TAXES The following table reflects the provision for income taxes and the effective tax rate for the three and six months ended April 1, 2023 and April 2, 2022:
For the three and six months ended April 1, 2023 as compared to the same periods ended April 2, 2022, the decrease in provision for income taxes is primarily related to a decrease in profitability and the increase in effective tax rate is primarily related to the increase in global intangible low-taxed income (“GILTI”), driven by the capitalization of research and development expenditures as mandated by the U.S. Tax Cuts and Jobs Act of 2017. For the three and six months ended April 1, 2023, the effective tax rate is higher than the U.S. federal statutory tax rate primarily due to GILTI, partially offset by foreign income earned in lower tax jurisdiction and tax incentives.
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SEGMENT INFORMATION |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT INFORMATION | 15. SEGMENT INFORMATION Reportable segments are defined as components of an enterprise that engage in business activities for which discrete financial information is available and regularly reviewed by the chief operating decision maker (the “CODM”) in deciding how to allocate resources and assess performance. The Company’s Chief Executive Officer is the CODM. The CODM does not review discrete asset information. The Company operates two reportable segments consisting of: (1) Capital Equipment; and (2) Aftermarket Products and Services (“APS”). The following table reflects operating information by segment for the three and six months ended April 1, 2023 and April 2, 2022:
We have considered (1) information that is regularly reviewed by our CODM as defined by the authoritative guidance on segment reporting, in evaluating financial performance; and (2) other financial data, including information that we include in our earnings releases but which is not included in our financial statements, to disaggregate revenues by end markets served. The principal category we use to disaggregate revenues is by the end markets served in the Capital Equipment segment. The following table reflects net revenue by Capital Equipment end markets served for the three and six months ended April 1, 2023 and April 2, 2022:
The following table reflects capital expenditures, depreciation expense and amortization expense for the three and six months ended April 1, 2023 and April 2, 2022:
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COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Notes) |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS | 16. COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS Warranty Expense The Company’s equipment is generally shipped with a one-year warranty against manufacturing defects. The Company establishes reserves for estimated warranty expense when revenue for the related equipment is recognized. The reserve for estimated warranty expense is based upon historical experience and management’s estimate of future warranty costs, including product part replacement, freight charges and related labor costs expected to be incurred in correcting manufacturing defects during the warranty period. The following table reflects the reserve for warranty activity for the three and six months ended April 1, 2023 and April 2, 2022:
Other Commitments and Contingencies The following table reflects obligations not reflected on the Consolidated Condensed Balance Sheets as of April 1, 2023:
(1)The Company orders inventory components in the normal course of its business. A portion of these orders are non-cancelable and a portion may have varying penalties and charges in the event of cancellation. From time to time, the Company is party to or the target of lawsuits, claims, investigations and proceedings, including for personal injury, intellectual property, commercial, contract, and employment matters, which are handled and defended in the ordinary course of business. The Company accrues a contingent loss liability for such matters when it is probable that a liability has been incurred and the amount can be reasonably estimated. When a single amount cannot be reasonably estimated but the cost can be estimated within a range, the Company accrues the minimum amount. The Company expenses legal costs, including those expected to be incurred in connection with a loss contingency, as incurred. Unfunded Capital Commitments As of April 1, 2023, the Company also has an obligation to fund uncalled capital commitments of approximately $9.6 million, as and when required, in relation to its investment in a private equity fund. Concentrations The following table reflects significant customer concentrations as a percentage of net revenue for the six months ended April 1, 2023 and April 2, 2022:
* Represents less than 10% of total net revenue The following table reflects significant customer concentrations as a percentage of total accounts receivable as of April 1, 2023 and April 2, 2022:
(1)Distributor of the Company's products. * Represents less than 10% of total accounts receivable
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BASIS OF PRESENTATION (Policies) |
6 Months Ended |
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Apr. 01, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation | These consolidated condensed financial statements include the accounts of Kulicke and Soffa Industries, Inc. and its subsidiaries (“we,” “us,” “our,” or the “Company”) with appropriate elimination of intercompany balances and transactions. The interim consolidated condensed financial statements are unaudited and, in management’s opinion, include all adjustments (consisting only of normal and recurring adjustments) necessary for a fair statement of results for these interim periods. The interim consolidated condensed financial statements do not include all of the information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended October 1, 2022, filed with the Securities and Exchange Commission, which includes the Consolidated Balance Sheets as of October 1, 2022 and October 2, 2021, and the related Consolidated Statements of Operations, Statements of Comprehensive Income, Changes in Shareholders’ Equity and Cash Flows for each of the years in the three-year period ended October 1, 2022. The results of operations for any interim period are not necessarily indicative of the results of operations for any other interim period or for a full year.
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Fiscal Year | Fiscal Year Each of the Company’s first three fiscal quarters end on the Saturday that is 13 weeks after the end of the immediately preceding fiscal quarter. The fourth quarter of each fiscal year ends on the Saturday closest to September 30. Fiscal 2023 quarters end on December 31, 2022, April 1, 2023, July 1, 2023 and September 30, 2023. In fiscal years consisting of 53 weeks, the fourth quarter will consist of 14 weeks. Fiscal 2022 quarters ended on January 1, 2022, April 2, 2022, July 2, 2022 and October 1, 2022. |
Nature of business | Nature of Business The Company designs, manufactures and sells capital equipment and tools as well as services, maintains, repairs and upgrades equipment, all used to assemble semiconductor devices. The Company’s operating results depend upon the capital and operating expenditures of semiconductor device manufacturers, integrated device manufacturers (“IDMs”), outsourced semiconductor assembly and test providers (“OSATs”), and other electronics manufacturers including automotive electronics suppliers worldwide which, in turn, depend on the current and anticipated market demand for semiconductors and products utilizing semiconductors. The semiconductor industry is highly volatile and experiences downturns and slowdowns which can have a severe negative effect on the semiconductor industry’s demand for semiconductor capital equipment, including assembly equipment manufactured and sold by the Company and, to a lesser extent, tools, solutions and services, including those sold or provided by the Company. These downturns and slowdowns have in the past adversely affected the Company’s operating results. The Company believes such volatility will continue to characterize the industry and the Company’s operations in the future.
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Use of Estimates | Use of Estimates The preparation of consolidated condensed financial statements requires management to make assumptions, estimates and judgments that affect the reported amounts of assets and liabilities, net revenue and expenses during the reporting periods, and disclosures of contingent assets and liabilities as of the date of the consolidated condensed financial statements. On an ongoing basis, management evaluates estimates, including but not limited to, those related to accounts receivable, reserves for excess and obsolete inventory, carrying value and lives of fixed assets, goodwill and intangible assets, the valuation estimates and assessment of impairment and observable price adjustments, income taxes, equity-based compensation expense, and warranties. Management bases its estimates on historical experience and on various other assumptions believed to be reasonable. As a result, management makes judgments regarding the carrying values of the Company’s assets and liabilities that are not readily apparent from other sources. Authoritative pronouncements, historical experience and assumptions are used as the basis for making estimates, and on an ongoing basis, management evaluates these estimates. Actual results may differ from these estimates. Due to the prolonged ongoing effects of the coronavirus (“COVID-19”) pandemic and macroeconomic headwinds, there has been uncertainty and disruption in the global economy and financial markets. The Company is not aware of any specific event or circumstance that would require an update to its estimates or judgments or a revision of the carrying value of its assets or liabilities as of April 1, 2023. While there was no material impact to our consolidated condensed financial statements as of and for the quarter ended April 1, 2023, these estimates may change, as new events occur and additional information is obtained, as well as other factors related to COVID-19 and macroeconomic headwinds that could materially impact our consolidated condensed financial statements in future reporting periods.
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Recent accounting pronouncements | Recent Accounting Pronouncements Government Assistance In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosure by Business Entities about Government Assistance which aims at increasing the transparency of government assistance received by most business entities. The standard requires business entities to make annual disclosures about the nature of the transactions and the related accounting policy used to account for the transactions, the line items and applicable amounts on the balance sheet and income statement that are affected by the transactions, and significant terms and conditions of the transactions, including commitments and contingencies. If an entity omits any required disclosures because it is legally prohibited, it must describe the general nature of the information and indicate that the omitted disclosures are legally prohibited from being disclosed. This ASU is effective for fiscal years beginning after December 15, 2021, which for the Company is in fiscal 2023. The Company will include disclosures for material items with the filing of its Annual Report on Form 10-K for the year ending on September 30, 2023. Business Combinations In October 2021, the FASB issued ASU 2021-08 Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with Topic 606 Revenue from Contracts with Customers. The amendments should be applied prospectively to business combinations occurring on or after the effective date of the amendments with early adoption permitted. We elected to early adopt this ASU in fiscal year 2023. The adoption of this ASU did not have a material impact on our consolidated condensed financial statements.
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BALANCE SHEET COMPONENTS (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of significant balance sheet accounts | The following tables reflect the components of significant balance sheet accounts as of April 1, 2023 and October 1, 2022:
(1)All short-term investments were classified as available-for-sale and the fair value approximates cost basis. The Company did not recognize any realized gains or losses on the sale of investments during the three and six months ended April 1, 2023 and April 2, 2022. (2)Represents customer advance payments, customer credit program, accrued warranty expense and accrued retrofit obligations.
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BUSINESS COMBINATION (Tables) |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of assets acquired and liabilities assumed as of acquisition date | The following table summarizes the allocation of the assets acquired and liabilities assumed based on the fair values as of the Closing Date:
The following table summarizes the fair value, useful life and valuation methodology of each identifiable intangible asset.
(1)The fair value of developed technology was determined using the Relief-from-Royalty Method under the income approach. (2)Customer relationships represent the fair value of the existing relationships using the Multi-Period Excess Earnings Method under the income approach. (3)The fair value of IPR&D and Patents were determined using the Replacement Cost Method, a form of the cost approach. (4)Order backlog represents primarily the fair value of purchase arrangements with customers using the Multi-Period Excess Earnings Method under the income approach.
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GOODWILL AND INTANGIBLE ASSETS (Tables) |
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Apr. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | The following table summarizes the Company’s recorded goodwill by reportable segments (refer to Note 15) as of April 1, 2023 and October 1, 2022:
During the quarter ended April 1, 2023, the Company recorded goodwill relating to the acquisition of AJA. For further information on the acquisition of AJA, please refer to Note 3.
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Net intangible assets | The following table reflects net intangible assets as of April 1, 2023 and October 1, 2022:
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Estimated annual amortization expense related to intangible assets | The following table reflects estimated annual amortization expense related to intangible assets as of April 1, 2023:
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CASH, CASH EQUIVALENTS, RESTRICTED CASH AND SHORT-TERM INVESTMENTS (Tables) |
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Cash and Cash Equivalents [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash, cash equivalents, restricted cash and short-term investments | Cash, cash equivalents, and short-term investments consisted of the following as of April 1, 2023:
(1)The fair value was determined using unadjusted prices in active, accessible markets for identical assets, and as such they were classified as Level 1 assets in the fair value hierarchy. (2)Fair value approximates cost basis. Cash, cash equivalents and short-term investments consisted of the following as of October 1, 2022:
(1)The fair value was determined using unadjusted prices in active, accessible markets for identical assets, and as such they were classified as Level 1 assets in the fair value hierarchy. (2)Fair value approximates cost basis.
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EQUITY INVESTMENTS (Tables) |
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Equity Method Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Equity investments | Equity investments consisted of the following as of April 1, 2023 and October 1, 2022:
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DERIVATIVES FINANCIAL INSTRUMENTS (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The fair value of derivative instruments on our Consolidated Condensed Balance Sheets as of April 1, 2023 and October 1, 2022 were as follows:
(1)The fair value of derivative assets is measured using level 2 fair value inputs and is included in prepaid expenses and other current assets on our Consolidated Condensed Balance Sheets. (2)The fair value of derivative liabilities is measured using level 2 fair value inputs and is included in accrued expenses and other current liabilities on our Consolidated Condensed Balance Sheets. (3)Hedged amounts expected to be recognized to income within the next twelve months.
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Derivative Instruments, Gain (Loss) | The effects of derivative instruments designated as cash flow hedges in our Consolidated Condensed Statements of Comprehensive Income for the three and six months ended April 1, 2023 and April 2, 2022 were as follows:
(1)Net change in the fair value of the effective portion classified in OCI. (2)Effective portion classified as selling, general and administrative expense.
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LEASES (Tables) |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease expense and components of lease expense | The following table shows the components of lease expense:
(1)Operating lease expense includes short-term lease expense, which is immaterial for the three and six months ended April 1, 2023 and April 2, 2022. The following table shows the cash flows arising from lease transactions. Cash payments related to short-term leases are not included in the measurement of operating lease liabilities, and, as such, are excluded from the amounts below:
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Weighted-average lease terms and discount rates | The following table shows the weighted-average lease terms and discount rates for operating leases:
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Future lease payments after ASC 842 adoption | Future lease payments, excluding short-term leases are detailed as follows:
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SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company’s matching contributions to the Plan | The following table reflects the Company’s contributions to the 401(k) Plan during the three and six months ended April 1, 2023 and April 2, 2022:
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Accumulated other comprehensive income reflected on the Consolidated Balance Sheets | The following table reflects accumulated other comprehensive loss reflected on the Consolidated Condensed Balance Sheets as of April 1, 2023 and October 1, 2022:
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Restricted stock and common stock granted | The following table reflects Time-based RSUs, Relative TSR PSUs, Growth PSUs and common stock granted during the three and six months ended April 1, 2023 and April 2, 2022:
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Equity-based compensation expense | The following table reflects total equity-based compensation expense, which includes Time-based RSUs, Relative TSR PSUs, Growth PSUs and common stock, included in the Consolidated Condensed Statements of Operations during the three and six months ended April 1, 2023 and April 2, 2022:
The following table reflects equity-based compensation expense, by type of award, for the three and six months ended April 1, 2023 and April 2, 2022:
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REVENUE AND CONTRACT BALANCES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract Assets and Liabilities | The following table shows the changes in contract asset balances during the three and six months ended April 1, 2023 and April 2, 2022:
The following table shows the changes in contract liability balances during the three and six months ended April 1, 2023 and April 2, 2022:
|
EARNINGS PER SHARE (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of shares used in the basic and diluted net income per share computation | The following table reflects a reconciliation of the shares used in the basic and diluted net income per share computation for the three and six months ended April 1, 2023 and April 2, 2022:
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INCOME TAXES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for income taxes and the effective tax rate | The following table reflects the provision for income taxes and the effective tax rate for the three and six months ended April 1, 2023 and April 2, 2022:
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SEGMENT INFORMATION (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating information by segment | The following table reflects operating information by segment for the three and six months ended April 1, 2023 and April 2, 2022:
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Schedule of net revenue by Capital Equipment end markets | The following table reflects net revenue by Capital Equipment end markets served for the three and six months ended April 1, 2023 and April 2, 2022:
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Capital expenditures, depreciation and amortization expense | The following table reflects capital expenditures, depreciation expense and amortization expense for the three and six months ended April 1, 2023 and April 2, 2022:
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COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reserve for product warranty activity | The following table reflects the reserve for warranty activity for the three and six months ended April 1, 2023 and April 2, 2022:
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Obligations not reflected on the Consolidated Balance Sheet | The following table reflects obligations not reflected on the Consolidated Condensed Balance Sheets as of April 1, 2023:
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Schedule of Revenue by Major Customers by Reporting Segments | The following table reflects significant customer concentrations as a percentage of net revenue for the six months ended April 1, 2023 and April 2, 2022:
* Represents less than 10% of total net revenue
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Significant customer concentrations as a percentage of total accounts receivable | The following table reflects significant customer concentrations as a percentage of total accounts receivable as of April 1, 2023 and April 2, 2022:
(1)Distributor of the Company's products. * Represents less than 10% of total accounts receivable
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BUSINESS COMBINATION (Narrative) (Details) - Advanced Jet Automation Co. Ltd - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Feb. 23, 2023 |
Apr. 01, 2023 |
Apr. 01, 2023 |
|
Business Acquisition [Line Items] | |||
Cash purchase price | $ 38.1 | ||
Amount held in escrow | $ 4.0 | $ 4.0 | |
Business acquisition, net income (loss) | (0.4) | (0.4) | |
Expenses incurred related to the acquisition | $ 0.3 | $ 0.4 | |
Amount held in escrow, period from acquisition date | 24 months |
BUSINESS COMBINATION (Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands |
Apr. 01, 2023 |
Feb. 22, 2023 |
Oct. 01, 2022 |
---|---|---|---|
Business Acquisition [Line Items] | |||
Goodwill | $ 98,893 | $ 68,096 | |
Advanced Jet Automation Co. Ltd | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 1,238 | ||
Account and other receivables, net | 1,156 | ||
Inventory | 1,581 | ||
Property, plant and equipment, net | 1,462 | ||
Right-of-use assets | 989 | ||
Other assets | 127 | ||
Goodwill | 27,975 | ||
Intangible assets | 7,768 | ||
Accounts and other payables | (965) | ||
Accrued expenses and other liabilities | (251) | ||
Contract liabilities | (187) | ||
Lease liability | (989) | ||
Deferred tax liabilities | (1,785) | ||
Total purchase price | $ 38,119 |
BUSINESS COMBINATION (Intangible assets acquired) (Details) - Advanced Jet Automation Co. Ltd $ in Thousands |
Feb. 22, 2023
USD ($)
|
---|---|
Business Acquisition [Line Items] | |
Intangible assets | $ 7,768 |
Developed technology | |
Business Acquisition [Line Items] | |
Intangible assets | $ 4,261 |
Useful Lives | 8 years |
Customer relationships | |
Business Acquisition [Line Items] | |
Intangible assets | $ 2,131 |
Useful Lives | 8 years |
In-process research and development | |
Business Acquisition [Line Items] | |
Intangible assets | $ 459 |
Patents | |
Business Acquisition [Line Items] | |
Intangible assets | $ 524 |
Useful Lives | 8 years |
Order Backlog | |
Business Acquisition [Line Items] | |
Intangible assets | $ 393 |
Useful Lives | 1 year |
GOODWILL AND INTANGIBLE ASSETS (Goodwill by Reportable Segment) (Details) $ in Thousands |
6 Months Ended |
---|---|
Apr. 01, 2023
USD ($)
| |
Goodwill [Roll Forward] | |
Balance at October 1, 2022 | $ 68,096 |
Acquired in business combination | 27,975 |
Other | 2,822 |
Balance at April 1, 2023 | 98,893 |
Capital Equipment | |
Goodwill [Roll Forward] | |
Balance at October 1, 2022 | 42,189 |
Acquired in business combination | 27,975 |
Other | 2,542 |
Balance at April 1, 2023 | 72,706 |
APS | |
Goodwill [Roll Forward] | |
Balance at October 1, 2022 | 25,907 |
Other | 280 |
Balance at April 1, 2023 | $ 26,187 |
GOODWILL AND INTANGIBLE ASSETS (Estimated annual amortization expense) (Details) $ in Thousands |
Apr. 01, 2023
USD ($)
|
---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remaining fiscal 2023 | $ 3,567 |
Fiscal 2024 | 6,963 |
Fiscal 2025 | 6,799 |
Fiscal 2026 | 6,799 |
Fiscal 2027 | 6,095 |
Thereafter | 9,669 |
Total amortization expense | $ 39,892 |
EQUITY INVESTMENTS (Details) - USD ($) $ in Thousands |
Apr. 01, 2023 |
Oct. 01, 2022 |
---|---|---|
Equity Method Investments [Abstract] | ||
Non-marketable equity securities | $ 5,433 | $ 5,397 |
DERIVATIVES FINANCIAL INSTRUMENTS (Fair value of derivative instruments) (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Apr. 01, 2023 |
Oct. 01, 2022 |
|
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 59,947 | $ 57,570 |
Fair value liability, derivates | (2,234) | |
Fair value asset, derivatives | $ 1,298 | |
Gain (loss) reclassification, estimate of time to transfer | 12 months | |
Derivatives designated as hedging instruments: | Foreign exchange forward contracts | ||
Derivatives, Fair Value [Line Items] | ||
Foreign exchange forward contract, term of contract | 12 months | |
Notional Amount | $ 59,947 | 57,570 |
Accrued Expenses and Other Current Liabilities | Derivatives designated as hedging instruments: | Foreign exchange forward contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair value liability, derivates | $ (2,234) | |
Prepaid Expenses and Other Current Assets | Derivatives designated as hedging instruments: | Foreign exchange forward contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair value asset, derivatives | $ 1,298 |
DERIVATIVES FINANCIAL INSTRUMENTS (Gain (loss) of derivative instruments) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Apr. 01, 2023 |
Apr. 02, 2022 |
Apr. 01, 2023 |
Apr. 02, 2022 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized gain/(loss) on derivative instruments, net of tax | $ 737 | $ (143) | $ 3,830 | $ 65 |
Reclassification adjustment for (gain)/loss on derivative instruments recognized, net of tax | 578 | (87) | 298 | (623) |
Unrealized gain/(loss) on hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized gain/(loss) on derivative instruments, net of tax | 737 | (143) | 3,830 | 65 |
Reclassification adjustment for (gain)/loss on derivative instruments recognized, net of tax | $ 578 | $ (87) | $ 298 | $ (623) |
LEASES - Narrative (Details) |
6 Months Ended |
---|---|
Apr. 01, 2023
extend_options
| |
Lessee, Lease, Description [Line Items] | |
Options to extend | 4 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, term of contract | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, term of contract | 20 years |
LEASES - Lease Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Apr. 01, 2023 |
Apr. 02, 2022 |
Apr. 01, 2023 |
Apr. 02, 2022 |
|
Lease, Cost [Abstract] | ||||
Operating lease expense | $ 2,683 | $ 1,990 | $ 5,273 | $ 4,044 |
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash outflows from operating leases | $ 4,673 | $ 3,752 |
LEASES - Lease Terms and Discount Rates (Details) |
Apr. 01, 2023 |
Oct. 01, 2022 |
---|---|---|
Leases [Abstract] | ||
Weighted-average remaining lease term (in years): | 7 years 9 months 18 days | 8 years |
Weighted-average discount rate: | 5.90% | 5.80% |
LEASES - Future Lease Payments After Adoption ASC 842 (Details) - USD ($) $ in Thousands |
Apr. 01, 2023 |
Oct. 01, 2022 |
---|---|---|
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
Remaining fiscal 2023 | $ 4,987 | |
Fiscal 2024 | 9,325 | |
Fiscal 2025 | 8,477 | |
Fiscal 2026 | 7,347 | |
Fiscal 2027 | 5,531 | |
Thereafter | 23,486 | |
Total minimum lease payments | 59,153 | |
Less: Interest | 12,325 | |
Present value of lease obligations | 46,828 | |
Less: Current portion | 7,271 | $ 6,766 |
Long-term portion of lease obligations | $ 39,557 | $ 34,927 |
DEBT AND OTHER OBLIGATIONS DEBT AND OTHER OBLIGATIONS (Details) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Apr. 01, 2023 |
Feb. 15, 2019 |
Nov. 22, 2013 |
|
Citibank | |||
Capital Leased Assets [Line Items] | |||
Capacity under credit facility | $ 5,000,000 | ||
Outstanding amounts under credit facility | $ 3,200,000 | ||
Facility agreements | MUFG Bank, Ltd., Singapore Branch | |||
Capital Leased Assets [Line Items] | |||
Capacity under credit facility | $ 150,000,000 | ||
Outstanding amounts under credit facility | $ 0 | ||
Secured Overnight Financing Rate (SOFR) | Facility agreements | MUFG Bank, Ltd., Singapore Branch | |||
Capital Leased Assets [Line Items] | |||
Debt instrument, basis spread on variable rate | 1.50% |
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Matching contributions to the Plan) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Apr. 01, 2023 |
Apr. 02, 2022 |
Apr. 01, 2023 |
Apr. 02, 2022 |
|
401(k) Cash Contributions | ||||
Cash | $ 540 | $ 496 | $ 1,014 | $ 1,004 |
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Accumulated other comprehensive income) (Details) - USD ($) $ in Thousands |
Apr. 01, 2023 |
Oct. 01, 2022 |
---|---|---|
Loss from foreign currency translation adjustments | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity | $ (13,881) | $ (29,854) |
Unrecognized actuarial loss on pension plan, net of tax | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity | (868) | (812) |
Unrealized gain/(loss) on hedging | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity | 1,298 | (2,234) |
Accumulated Other Comprehensive (Loss)/Income | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity | $ (13,451) | $ (32,900) |
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Restricted stock and common stock granted) (Details) - shares shares in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Apr. 01, 2023 |
Apr. 02, 2022 |
Apr. 01, 2023 |
Apr. 02, 2022 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-based compensation in shares | 10 | 18 | 802 | 541 |
Time-based RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-based compensation in shares | 4 | 7 | 512 | 302 |
Relative TSR PSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-based compensation in shares | 0 | 4 | 186 | 154 |
Growth PSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-based compensation in shares | 0 | 3 | 92 | 77 |
Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-based compensation in shares | 6 | 4 | 12 | 8 |
REVENUE AND CONTRACT BALANCES - Contract Assets (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Apr. 01, 2023 |
Apr. 02, 2022 |
Apr. 01, 2023 |
Apr. 02, 2022 |
|
Contract with Customer, Asset, Allowance for Credit Loss [Roll Forward] | ||||
Contract assets, beginning of period | $ 28,987 | $ 0 | $ 26,317 | $ 0 |
Additions | 223 | 26,721 | 2,893 | 26,721 |
Contract assets, end of period | $ 29,210 | $ 26,721 | $ 29,210 | $ 26,721 |
REVENUE AND CONTRACT BALANCES - Contract Liabilities (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Apr. 01, 2023 |
Apr. 02, 2022 |
Apr. 01, 2023 |
Apr. 02, 2022 |
|
Change in Contract with Customer, Liability [Roll Forward] | ||||
Contract liabilities, beginning of period | $ 7,781 | $ 28,228 | $ 3,160 | $ 15,596 |
Revenue recognized | (9,276) | (43,818) | (16,546) | (75,184) |
Additions | 8,051 | 32,890 | 19,942 | 76,888 |
Contract liabilities, end of period | $ 6,556 | $ 17,300 | $ 6,556 | $ 17,300 |
EARNINGS PER SHARE (Reconciliation of the shares used in the basic and diluted net income per share computation) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Apr. 01, 2023 |
Dec. 31, 2022 |
Apr. 02, 2022 |
Jan. 01, 2022 |
Apr. 01, 2023 |
Apr. 02, 2022 |
|
NUMERATOR: | ||||||
Net income | $ 15,041 | $ 14,589 | $ 116,001 | $ 133,606 | $ 29,630 | $ 249,607 |
DENOMINATOR: | ||||||
Weighted average shares outstanding - Basic (in shares) | 56,684,000 | 61,482,000 | 56,868,000 | 61,934,000 | ||
Dilutive effect of Equity Plans (in shares) | 893,000 | 953,000 | 871,000 | 973,000 | ||
Weighted average shares outstanding - Diluted (in shares) | 57,577,000 | 62,435,000 | 57,739,000 | 62,907,000 | ||
EPS: | ||||||
Net income per share - Basic (in dollars per share) | $ 0.27 | $ 1.89 | $ 0.52 | $ 4.03 | ||
Effect of dilutive shares (in dollars per share) | 0.01 | 0.03 | 0.01 | 0.06 | ||
Net income per share - Diluted (in dollars per share) | $ 0.26 | $ 1.86 | $ 0.51 | $ 3.97 | ||
Anti-dilutive shares (in shares) | 0 | 21,000 | 1,000 | 1,000 |
INCOME TAXES (Provision for income taxes and the effective tax rate) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Apr. 01, 2023 |
Apr. 02, 2022 |
Apr. 01, 2023 |
Apr. 02, 2022 |
|
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 5,556 | $ 13,713 | $ 9,314 | $ 31,648 |
Effective tax rate | 27.00% | 10.60% | 23.90% | 11.30% |
SEGMENT INFORMATION (Narrative) (Details) |
6 Months Ended |
---|---|
Apr. 01, 2023
segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
SEGMENT INFORMATION (Operating information by segment) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Apr. 01, 2023 |
Apr. 02, 2022 |
Apr. 01, 2023 |
Apr. 02, 2022 |
|
Net revenue: | ||||
Net revenue | $ 173,021 | $ 384,282 | $ 349,254 | $ 845,170 |
Income from operations: | ||||
Income from operations | 12,629 | 129,341 | 24,451 | 280,451 |
Capital Equipment | ||||
Net revenue: | ||||
Net revenue | 133,727 | 333,909 | 269,099 | 742,437 |
Income from operations: | ||||
Income from operations | 3,318 | 111,200 | 7,190 | 243,219 |
APS | ||||
Net revenue: | ||||
Net revenue | 39,294 | 50,373 | 80,155 | 102,733 |
Income from operations: | ||||
Income from operations | $ 9,311 | $ 18,141 | $ 17,261 | $ 37,232 |
SEGMENT INFORMATION (Schedule of net revenue by Capital Equipment end markets (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Apr. 01, 2023 |
Apr. 02, 2022 |
Apr. 01, 2023 |
Apr. 02, 2022 |
|
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 173,021 | $ 384,282 | $ 349,254 | $ 845,170 |
Capital Equipment | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 133,727 | 333,909 | 269,099 | 742,437 |
Capital Equipment | General Semiconductor | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 71,064 | 198,694 | 139,436 | 447,217 |
Capital Equipment | Automotive & Industrial | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 51,455 | 58,700 | 104,635 | 109,348 |
Capital Equipment | LED | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 5,894 | 42,036 | 15,087 | 108,191 |
Capital Equipment | Memory | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 5,314 | $ 34,479 | $ 9,941 | $ 77,681 |
SEGMENT INFORMATION (Capital expenditures, depreciation and amortization expense by segment) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Apr. 01, 2023 |
Apr. 02, 2022 |
Apr. 01, 2023 |
Apr. 02, 2022 |
|
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Capital expenditures: | $ 17,383 | $ 3,384 | $ 33,034 | $ 6,260 |
Depreciation and amortization expense: | ||||
Depreciation expense: | 4,979 | 4,073 | 9,198 | 8,129 |
Amortization expense: | 1,563 | 1,151 | 2,957 | 2,434 |
Capital Equipment | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Capital expenditures: | 14,951 | 2,467 | 29,050 | 4,433 |
Depreciation and amortization expense: | ||||
Depreciation expense: | 3,187 | 2,256 | 5,627 | 4,539 |
Amortization expense: | 1,171 | 921 | 2,192 | 1,933 |
APS | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Capital expenditures: | 2,432 | 917 | 3,984 | 1,827 |
Depreciation and amortization expense: | ||||
Depreciation expense: | 1,792 | 1,817 | 3,571 | 3,590 |
Amortization expense: | $ 392 | $ 230 | $ 765 | $ 501 |
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Reserve for product warranty activity) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Apr. 01, 2023 |
Apr. 02, 2022 |
Apr. 01, 2023 |
Apr. 02, 2022 |
|
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||||
Reserve for warranty, beginning of period | $ 11,421 | $ 17,110 | $ 13,443 | $ 16,961 |
Provision for warranty | 2,882 | 2,191 | 4,982 | 6,159 |
Utilization of reserve | (3,835) | (3,783) | (7,957) | (7,602) |
Reserve for warranty, end of period | $ 10,468 | $ 15,518 | $ 10,468 | $ 15,518 |
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Obligations not reflected on the Consolidated Balance Sheet) (Details) $ in Thousands |
Apr. 01, 2023
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
Total | $ 233,697 |
2023 | 54,215 |
2024 | 179,482 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
thereafter | $ 0 |
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Significant customer concentrations as a percentage of net revenue) (Details) |
6 Months Ended |
---|---|
Apr. 01, 2023 | |
First Technology China Ltd. | Revenue Benchmark | Customer Concentration Risk | |
Concentration Risk [Line Items] | |
Customer concentrations risk percentage | 11.90% |
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Significant customer concentrations as a percentage of total accounts receivable) (Details) - Accounts Receivable - Customer Concentration Risk |
6 Months Ended | |
---|---|---|
Apr. 01, 2023 |
Apr. 02, 2022 |
|
Intel Corporation | ||
Concentration Risk [Line Items] | ||
Customer concentrations risk percentage | 14.60% | |
Tianshui Huatian Technology Co., Ltd. | ||
Concentration Risk [Line Items] | ||
Customer concentrations risk percentage | 23.50% | |
Haoseng Industrial Co., Ltd. (1) | ||
Concentration Risk [Line Items] | ||
Customer concentrations risk percentage | 12.40% |
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS - Narrative (Details) $ in Thousands |
6 Months Ended |
---|---|
Apr. 01, 2023
USD ($)
| |
Other Commitments [Line Items] | |
Period of warranty for manufacturing defects | 1 year |
Unfunded Capital Commitment | |
Other Commitments [Line Items] | |
Other Commitment | $ 9,600 |
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