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 or Organization) |
(I.R.S. Employer Identification No.) | |
(Address of Principal Executive Offices) |
(Zip Code) | |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
per share |
| ☒ | Accelerated filer | ☐ | ||||
Non-accelerated filer |
☐ | Emerging growth company | ||||
| Smaller reporting company | ||||||
Item 1: |
Financial Statements |
July 2, 2023 |
December 31, 2022 |
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(in thousands, except per share amount) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
$ | $ | ||||||
Marketable securities |
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Accounts receivable, less allowance for credit losses of $ |
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Inventories, net |
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Prepayments |
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Other current assets |
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Total current assets |
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Property, plant and equipment, net |
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Operating lease right-of-use |
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Marketable securities |
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Deferred tax assets |
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Retirement plans assets |
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Other assets |
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Acquired intangible assets, net |
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Goodwill |
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Total assets |
$ | $ | ||||||
LIABILITIES |
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Current liabilities: |
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Accounts payable |
$ | $ | ||||||
Accrued employees’ compensation and withholdings |
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Deferred revenue and customer advances |
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Other accrued liabilities |
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Operating lease liabilities |
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Income taxes payable |
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Current debt |
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Total current liabilities |
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Retirement plans liabilities |
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Long-term deferred revenue and customer advances |
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Long-term other accrued liabilities |
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Deferred tax liabilities |
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Long-term operating lease liabilities |
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Long-term incomes taxes payable |
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Total liabilities |
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Commitments and contingencies (Note P) |
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SHAREHOLDERS’ EQUITY |
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Common stock, $ |
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Additional paid-in capital |
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Accumulated other comprehensive loss |
( |
) | ( |
) | ||||
Retained earnings |
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Total shareholders’ equity |
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Total liabilities and shareholders’ equity |
$ |
$ |
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For the Three Months Ended |
For the Six Months Ended |
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July 2, 2023 |
July 3, 2022 |
July 2, 2023 |
July 3, 2022 |
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(in thousands, except per share amount) |
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| Revenues: |
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| Products |
$ | $ | $ | $ | ||||||||||||
| Services |
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| Total revenues |
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| Cost of revenues: |
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| Cost of products |
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| Cost of services |
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| |
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| Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) |
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| Gross profit |
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| Operating expenses: |
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| Selling and administrative |
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| Engineering and development |
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| Acquired intangible assets amortization |
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| Restructuring and other |
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| Total operating expenses |
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| Income from operations |
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| Non-operating (income) expense: |
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| Interest income |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| Interest expense |
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| Other (income) expense, net |
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| Income before income taxes |
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| Income tax provision |
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| Net income |
$ | $ | $ | $ | ||||||||||||
| |
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| Net income per common share: |
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| Basic |
$ | $ | $ | $ | ||||||||||||
| |
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| Diluted |
$ | $ | $ | $ | ||||||||||||
| |
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| Weighted average common shares—basic |
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| Weighted average common shares—diluted |
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For the Three Months Ended |
For the Six Months Ended |
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July 2, 2023 |
July 3, 2022 |
July 2, 2023 |
July 3, 2022 |
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(in thousands) |
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| Net income |
$ | $ | $ | $ | ||||||||||||
| Other comprehensive income, net of tax: |
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| Foreign currency translation adjustment, net of tax of $ |
( |
) | ( |
) | ||||||||||||
| Available-for-sale |
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| Unrealized (losses) gains on marketable securities arising during period, net of tax of $( |
( |
) | ( |
) | ( |
) | ||||||||||
| Less: Reclassification adjustment for losses included in net income, net of tax of $ $ |
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| |
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| ( |
) | ( |
) | ( |
) | |||||||||||
| Cash flow hedges: |
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| Unrealized gains arising during period, net of tax of $ |
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| Less: Reclassification adjustment for losses included in net income, net of tax of $ |
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| Defined benefit post-retirement plan: |
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| Amortization of prior service credit, net of tax of $ |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| |
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| Other comprehensive income (loss) |
( |
) | ( |
) | ||||||||||||
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| Comprehensive income |
$ | $ | $ | $ | ||||||||||||
| |
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Shareholders’ Equity |
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Convertible Common Shares Value |
Common Stock Shares |
Common Stock Par Value |
Additional Paid-in Capital |
Accumulated Other Comprehensive (Loss) Income |
Retained Earnings |
Total Shareholders’ Equity |
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(in thousands) |
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For the Three Months Ended July 2, 2023 |
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Balance, April 2, 2023 |
$ |
$ |
$ |
$ |
( |
) |
$ |
$ |
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Net issuance of common stock under stock-based plans |
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Stock-based compensation expense |
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Repurchase of common stock |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||
Cash dividends ($0.11 per share) |
( |
) |
( |
) | ||||||||||||||||||||||||
Settlements of convertible notes |
( |
) |
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Exercise of convertible notes hedge call options |
( |
) |
( |
) |
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Net income |
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Other comprehensive income |
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Balance, July 2, 2023 |
$ |
$ |
$ |
$ |
( |
) |
$ |
$ |
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For the Three Months Ended July 3, 2022 |
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Balance, April 3, 2022 |
$ |
$ |
$ |
$ |
( |
) |
$ |
$ |
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Net issuance of common stock under stock-based plans |
( |
) |
( |
) | ||||||||||||||||||||||||
Stock-based compensation expense |
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Repurchase of common stock |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||
Cash dividends ($0.11 per share) |
( |
) |
( |
) | ||||||||||||||||||||||||
Settlements of convertible notes |
( |
) |
( |
) | ||||||||||||||||||||||||
Exercise of convertible notes hedge call options |
( |
) |
( |
) |
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Cumulative-effect of change in accounting principle related to convertible debt |
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Net income |
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Other comprehensive loss |
( |
) |
( |
) | ||||||||||||||||||||||||
Balance, July 3, 2022 |
$ |
$ |
$ |
$ |
( |
) |
$ |
$ |
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For the Six Months Ended July 2, 2023 |
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Balance, December 31, 2022 |
$ |
$ |
$ |
$ |
( |
) |
$ |
$ |
||||||||||||||||||||
Net issuance of common stock under stock-based plans |
( |
) |
( |
) | ||||||||||||||||||||||||
Stock-based compensation expense |
||||||||||||||||||||||||||||
Repurchase of common stock |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||
Cash dividends ($0.22 per share) |
( |
) |
( |
) | ||||||||||||||||||||||||
Settlements of convertible notes |
( |
) |
||||||||||||||||||||||||||
Exercise of convertible notes hedge call options |
( |
) |
( |
) |
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Net income |
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Other comprehensive income |
||||||||||||||||||||||||||||
Balance, July 2, 2023 |
$ |
$ |
$ |
$ |
( |
) |
$ |
$ |
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For the Six Months Ended July 3, 2022 |
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Balance, December 31, 2021 |
$ |
$ |
$ |
$ |
( |
) |
$ |
$ |
||||||||||||||||||||
Net issuance of common stock under stock-based plans |
( |
) |
( |
) | ||||||||||||||||||||||||
Stock-based compensation expense |
||||||||||||||||||||||||||||
Repurchase of common stock |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||
Cash dividends ($0.22 per share) |
( |
) |
( |
) | ||||||||||||||||||||||||
Settlements of convertible notes |
( |
) |
( |
) | ||||||||||||||||||||||||
Exercise of convertible notes hedge call options |
( |
) |
( |
) |
||||||||||||||||||||||||
Cumulative-effect of change in accounting principle related to convertible debt |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||
Net income |
||||||||||||||||||||||||||||
Other comprehensive loss |
( |
) |
( |
) | ||||||||||||||||||||||||
Balance, July 3, 2022 |
$ |
$ |
$ |
$ |
( |
) |
$ |
$ |
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For the Six Months Ended |
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July 2, 2023 |
July 3, 2022 |
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(in thousands) |
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| Cash flows from operating activities: |
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| Net income |
$ | $ | ||||||
| Adjustments to reconcile net income from operations to net cash provided by operating activities: |
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| Depreciation |
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| Stock-based compensation |
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| Provision for excess and obsolete inventory |
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| Amortization |
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| Deferred taxes |
( |
) | ( |
) | ||||
| (Gains) losses on investments |
( |
) | ||||||
| Other |
( |
) | ||||||
| Changes in operating assets and liabilities |
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| Accounts receivable |
( |
) | ( |
) | ||||
| Inventories |
( |
) | ( |
) | ||||
| Prepayments and other assets |
( |
) | ( |
) | ||||
| Accounts payable and other liabilities |
( |
) | ( |
) | ||||
| Deferred revenue and customer advances |
( |
) | ||||||
| Retirement plans contributions |
( |
) | ( |
) | ||||
| Income taxes |
( |
) | ||||||
| |
|
|
|
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| Net cash provided by operating activities |
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| |
|
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|
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| Cash flows from investing activities: |
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| Purchases of property, plant and equipment |
( |
) | ( |
) | ||||
| Purchases of marketable securities |
( |
) | ( |
) | ||||
| Proceeds from sales of marketable securities |
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| Proceeds from maturities of marketable securities |
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| Proceeds from life insurance |
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| |
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|
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| Net cash used for investing activities |
( |
) | ( |
) | ||||
| |
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|
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| Cash flows from financing activities: |
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| Repurchase of common stock |
( |
) | ( |
) | ||||
| Dividend payments |
( |
) | ( |
) | ||||
| Payments related to net settlement of employee stock compensation awards |
( |
) | ( |
) | ||||
| Payments of convertible debt principal |
( |
) | ( |
) | ||||
| Issuance of common stock under stock purchase and stock option plans |
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| |
|
|
|
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| Net cash used for financing activities |
( |
) | ( |
) | ||||
| |
|
|
|
|||||
| Effects of exchange rate changes on cash and cash equivalents |
||||||||
| |
|
|
|
|||||
| Decrease in cash and cash equivalents |
( |
) | ( |
) | ||||
| Cash and cash equivalents at beginning of period |
||||||||
| |
|
|
|
|||||
| Cash and cash equivalents at end of period |
$ | $ | ||||||
| |
|
|
|
|||||
| Non-cash investing activities: |
||||||||
| Capital expenditures incurred but not yet paid: |
$ | $ | ||||||
| • | semiconductor test (“Semiconductor Test”) systems; |
| • | storage and system level test (“Storage Test”) systems, defense/aerospace (“Defense/Aerospace”) test instrumentation and systems, and circuit-board test and inspection (“Production Board Test”) systems (collectively these products represent “System Test”); |
| • | wireless test (“Wireless Test”) systems; and |
| • | robotics (“Robotics”) products. |