Segment Reporting and Geographic Information

12 Months Ended

Dec. 28, 2024

Segment Reporting [Abstract]

Segment Reporting and Geographic Information

Segment Reporting and Geographic Information:

The Company is organized and operates as one operating and reportable segment; the design, development, manufacture and support of high-performance control metrology, defect inspection, lithography and data analysis systems used by microelectronics device manufacturers. This determination is based on the management approach which designates internal information regularly available to the Chief Operating Decision Maker (“CODM”) for making decisions and assessing performance as the source of determination of the Company’s reportable segments. The Company’s CODM, the Chief Executive Officer, reviews financial information presented on a consolidated basis for the purpose of making operating decisions and assessing financial performance.

The CODM uses net income as the measure of profit or loss to allocate resources and assess performance. The CODM regularly reviews net income as reported on the Company’s consolidated statements of operations. Financial forecasts and budget to actual results used by the CODM to assess performance and allocate resources, as well as those used for strategic decisions related to headcount and capital expenditures are also reviewed on a consolidated basis. The CODM considers the impact of the significant segment expenses in the table below on net income when deciding whether to reinvest profits, propose share repurchase, or pursue strategic mergers and acquisitions.

The measure of segment assets is reported on the balance sheet as total assets. The CODM does not review segment assets at a level other than that presented in the Company’s consolidated balance sheets.

The table below presents the Company’s consolidated operating results including significant segment expenses:

	Year Ended
	December 28, 2024			December 30, 2023			December 31, 2022
	(in thousands)
Revenue	$	987,321		$	815,868		$	1,005,183
Less:
Restructuring expenses (1)		23,077			10,599			—
Merger and acquisitions related expenses (2)		7,652			2,607			5,761
Litigation expenses (3)		27			11,337			3,935
Cost of revenue (excluding 1 & 2)		457,855			388,429			465,883
Research and development (excluding 1 & 2)		109,572			103,656			105,648
Sales and marketing (excluding 1 & 2)		75,911			61,604			65,558
General and administrative (excluding 1, 2 & 3)		76,687			66,736			66,400
Amortization		49,437			54,822			55,284
Operating income		187,103			116,078			236,714
Interest income, net		33,489			20,356			5,011
Other expense, net		(145	)		(3,852	)		(141	)
Provision for income taxes		18,777			11,423			18,250
Net income	$	201,670		$	121,159		$	223,334

The following table lists the different sources of revenue:

	Year Ended
	December 28, 2024				December 30, 2023				December 31, 2022
	(in thousands, except for percentages)
Systems and software	$	850,443	86	%	$	683,316	84	%	$	865,707	86	%
Parts		76,584	8	%		74,604	9	%		84,266	8	%
Services		60,294	6	%		57,948	7	%		55,210	6	%
Total revenue	$	987,321	100	%	$	815,868	100	%	$	1,005,183	100	%

The Company’s significant operations outside the United States include sales, service and application offices in Asia and Europe. For geographical revenue reporting, revenue is attributed to the geographic location to which the product is shipped. Revenue by geographic region is as follows:

	Year Ended
	December 28, 2024		December 30, 2023		December 31, 2022
	(in thousands)
Revenue from third parties:
Taiwan	$	307,538	$	141,915	$	199,104
South Korea		285,695		169,323		224,172
China		116,387		136,940		250,968
United States		104,109		130,292		121,487
Southeast Asia		64,912		87,585		71,062
Japan		56,999		93,831		58,133
Europe		51,681		55,982		80,256
Total revenue	$	987,321	$	815,868	$	1,005,183

The following customers represented 10% or more of the Company’s total revenue for the respective years:

	Year Ended
Customer	December 28, 2024			December 30, 2023	December 31, 2022
Customer A		23	%	14 %	15 %
Customer B		17	%	19 %	13 %
Customer C		12	%	^	11 %
^ Total customer revenue was less than 10% of total revenue.

Two customers’ net accounts receivable balances were individually greater than 10% of net accounts receivable at December 28, 2024, representing, in the aggregate approximately 47% of the Company’s total net accounts receivable.

Two customers’ net accounts receivable balances were individually greater than 10% of net accounts receivable at December 30, 2023, representing, in the aggregate approximately 29% of the Company’s total net accounts receivable.

Substantially all of the Company’s long-lived assets are located within the United States of America.